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Home My WebLink About2019-04-22 City Council Agenda Packet City Council 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Monday, April 22, 2019 Special Meeting Council Chambers 5:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 11 days preceding the meeting. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. Public comment may be addressed to the full City Council via email at City.Council@cityofpaloalto.org. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. To ensure participation in a particular item, we suggest arriving at the beginning of the meeting and remaining until the item is called. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Closed Session 5:00-6:00 PM Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 1. CONFERENCE WITH CITY ATTORNEY-EXISTING LITIGATION Santa Clara County Superior Court, Case No. 16CV300760 (One Case, as Defendant) –Miriam Green v. City of Palo Alto Authority: Government Code Section 54956.9(d)(1) Special Orders of the Day 6:00-6:15 PM 2. Resolution of the Council of the City of Palo Alto Expressing Appreciation to Stacey Henderson Upon her Retirement Study Session 6:15-6:45 PM 3. Presentation of the City Manager's Proposed Fiscal Year (FY) 2019/20 Budget Agenda Changes, Additions and Deletions 2 April 22, 2019 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. City Manager Comments 6:45-6:55 PM Oral Communications 6:55-7:10 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Minutes Approval 7:10-7:15 PM 4.Approval of Action Minutes for the April 8, 2019 Council Meeting Consent Calendar 7:15-7:20 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 5.Adoption of a Resolution Amending the City of Palo Alto's Deferred Compensation Plan for Regular Employees, and Incorporating an Employer Contribution Provision and Loan Provision by Adoption of the Amended Deferred Compensation Plan and Trust Document 6.Approval of Amendment Number 3 to Contract Number C16158064 With BKF Engineers to Extend the Term to June 30, 2019 and Increase Compensation by $44,885 for a Maximum Not-to-Exceed Amount of $583,432 for Additional Design Services Related to the Embarcadero Road at El Camino Real Intersection Improvements Project (PL-15001) 7.Approval of Amendment Number 2 to Contract Number S17167994 With MuniServices, LLC for Sales Tax Consulting Services to Increase the Amount by $40,000 for a new Not-to-Exceed Amount of $125,000 and to Extend the Term Through August 31, 2019 8.Adoption of a Memorandum of Agreement Between the City of Palo Alto and Service Employees International Union (SEIU) Local 521 9.Finance Committee Recommends the City Council Approve the 2019 Workplan to Address the City Council Priority, “Fiscal Sustainability”; and Review an Update Regarding the Fiscal Year (FY) 2019 Adopted Budget Referral to Identify $4 Million in General Fund Savings 10.SECOND READING: Adoption of an Ordinance of the Council of the City of Palo Alto Amending the Setback Map of the City of Palo Alto to Eliminate the 50-foot Special Setback Along Hansen Way for 3200 El Camino Real (FIRST READING: April 1, 2019 PASSED: 7-0) 11.SECOND READING: Adoption of an Ordinance Amending Section 18.18.120 (Grandfathered Uses and Facilities) of the Palo Alto Municipal Code to Adjust Regulations Pertaining to Noncomplying Facilities. California Environmental Quality Act (CEQA): This Ordinance is Within the Scope of the Comprehensive Plan. Environmental Impact MEMO MEMO Q&A Q&A 3 April 22, 2019 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Report (EIR) Certified and Adopted on November 13, 2017 by Council Resolution No. 9720; the Ordinance is Also Exempt From Environmental Review Under CEQA Guidelines Sections 15061(b)(3) and 15305. (FIRST READING: April 1, 2019 PASSED: 6-1 Kou no) Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:20-8:15 PM 12. PUBLIC HEARING: Adoption of an Ordinance Amending Title 16 of the Palo Alto Municipal Code to Modify and Increase the Citywide Transportation Impact Fee (Chapter 16.59) and Suspend Application of the Existing Area-specific Transportation Impact Fees for the Stanford Research Park/El Camino Real CS Zone (Chapter 16.45) and the San Antonio/West Bayshore Area (Chapter 16.46), and Amending the Municipal Fee Schedule to Update the City’s Transportation Impact Fees in Accordance With These Changes, all in Furtherance of Implementation of the Comprehensive Plan. The Citywide Transportation Impact Fee is a One-time fee on new Development and Redevelopment Throughout Palo Alto to Fund Transportation Improvements to Accommodate and Mitigate the Impacts of Future Development in the City. This Ordinance is Within the Scope of the Comprehensive Plan Environmental Impact Report (EIR) Certified and Adopted on November 13, 2017 by Council Resolution No. 9720 8:15-9:30 PM 13. Approval of a Workplan for Potential Revenue Generating Proposals, Including Consideration of a Ballot Measure, in Support of the 2019 Fiscal Sustainability Council Priority 9:30-10:15 PM 14. Connecting Palo Alto Work Plan for Selection of Preferred Solutions to Rail Grade Separation Needs: Approval of Structure and Membership of an Expanded Community Working Group, Work Plan, and Revisions to Alternatives for Further Study; and Direction to Staff to Return to Council With Associated AECOM Contract Amendment State/Federal Legislation Update/Action Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. 4 April 22, 2019 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Standing Committee Meetings Sp. Council Appointed Officers Committee Meeting April 23, 2019 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report City of Palo Alto's Energy Risk Management Report for the First Half of Fiscal Year 2019 Public Letters to Council Set 1 City of Palo Alto (ID # 10259) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 4/22/2019 City of Palo Alto Page 1 Summary Title: Retirement Resolution for Stacey Henderson Title: Resolution of the Council of the City of Palo Alto Expressing Appreciation to Stacey Henderson Upon her Retirement From: City Manager Lead Department: Police Attachments: • Attachment A: Resolution Expressing Appreciation to Stacey Henderson Upon Her Retirement Resolution EXPRESSING APPRECIATION TO STACEY HENDERSON UPON HER RETIREMENT WHEREAS, Stacey Henderson served the City of Palo Alto and its citizens as a member of the Palo Alto Police Department for 27 years, first becoming Parking Enforcement Officer in 1991, then a Community Service Officer in 1996, and ultimately a Records Specialist in 2012; and WHEREAS, Stacey Henderson served as a Parking Enforcement Officer, Vehicle Abatement Officer, Leaf Blower Enforcement Officer, Community Services Officer and Records Specialist; and WHEREAS, CSO Henderson provided support to the Patrol and Traffic Divisions by contacting victims of crime to document their reports and aided the citizens of Palo Alto and other jurisdictions; and WHEREAS, when assigned to traffic, CSO Henderson provided traffic control for large events such as Stanford Football games, the beloved May Fete Parade, and for many years served in a support capacity for the Special Olympic Torch run in Palo Alto; and WHEREAS, Stacey Henderson became a Police Records Specialist in 2012 and applied her training and expertise to assist citizens in new ways. Her knowledge of Palo Alto’s geography was particularly helpful to those seeking directions or advice about navigating the downtown and California Avenue parking lots; and WHEREAS, PRS Henderson has served the citizens of the City of Palo Alto by handling numerous phone inquiries and relaying important information to both the public and allied law enforcement agencies; and WHEREAS, PRS Henderson has pursued her 27-and-a-half-year career with the City of Palo Alto with dedication, can-do enthusiasm, energy and exemplary customer service to the citizens she served; and WHEREAS, PRS Henderson supported her coworkers with a high degree of professionalism and respect that is in alignment with the mission of the Department; and WHEREAS, Stacey Henderson deserves a long and happy retirement for all her years of dedicated service. NOW, THEREFORE, LET IT BE RESOLVED, that the City Council of the City of Palo Alto hereby commends the outstanding public service of Stacey Henderson and records its appreciation, as well as the appreciation of the citizens of this community, upon her retirement. INTRODUCED AND PASSED: April 22, 2019 ATTEST: APPROVED: _____________________ ____________________ City Clerk Mayor APPROVED AS TO FORM: _____________________ ____________________ City Manager City Attorney CITY OF PALO ALTO OFFICE OF THE CITY CLERK April 22, 2019 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the April 8, 2019 Council Meeting Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: • Attachment A: 04-08-19 DRAFT Action Minutes (DOCX) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 4 Regular Meeting April 8, 2019 The City Council of the City of Palo Alto met on this date in the Council Chambers at 6:06 P.M. Present: Cormack, DuBois, Filseth, Fine, Kou, Tanaka Absent: Kniss Study Session 1. Joint Study Session With the Palo Alto Youth Council. Agenda Changes, Additions and Deletions None. Minutes Approval 2. Approval of Action Minutes for the March 11 and March 18, 2019 Council Meetings and the March 18, 2019 Committee of the Whole Meeting. MOTION: Council Member DuBois moved, seconded by Council Member Cormack to approve the Action Minutes for the March 11 and March 18, 2019 Council Meetings and the March 18, 2019 Committee of the Whole Meeting. MOTION PASSED: 6-0 Kniss absent Consent Calendar MOTION: Mayor Filseth moved, seconded by Council Member DuBois to approve Agenda Item Numbers 3-5. 3. Approval of Amendment Number 2 to Contract Number C15157160 With Traffic Data Services for the Provision of On-call Traffic Data Collection Services to Extend the Term Through June 30, 2020 and Increase Maximum Compensation by $75,000 for a Total Not-to- Exceed Amount of $175,000. DRAFT ACTION MINUTES Page 2 of 4 City Council Meeting Draft Action Minutes: 4/8/2019 4. Approval of Construction Contract Number C19174815 With O'Grady Paving, Inc. in an Amount Not-to-Exceed $679,033, and Authorization of Contract Contingency in an Amount Not-to-Exceed $67,904 for the University Avenue Resurfacing Project, Capital Improvement Program Projects WS-12001, GS-12001, EL-98003, FO-10001, and PE-86070. 5. Request for Authorization to Increase the Legal Services Agreement With the Law Firm of Conrad Metlitzky, LLP by an Additional $12,000 for a Total Not-to-Exceed Amount of $277,000. MOTION PASSED: 6-0 Kniss absent Action Items 6. PUBLIC HEARING/QUASI-JUDICIAL: 3225 El Camino Real [18PLN-00166]: Request for Approval of a Final Map to Create a two lot Vertical Airspace Subdivision for a Retail/Office Space, Four Apartments and Four Condominiums. The Final Map Also Includes Access and Utility Easements. Environmental Assessment: Exempt From the Provisions of the California Environmental Quality Act (CEQA) in Accordance With Guideline Section 15268(b)(3) (Ministerial Projects). Zoning District: Service Commercial (CS). Public Hearing opened at 7:09 P.M. Public Hearing closed at 7:11 P.M. MOTION: Council Member DuBois moved, seconded by Vice Mayor Fine to: A. Find the Project exempt from the California Environmental Quality Act (CEQA) pursuant to Guidelines Section 15268(b)(3) and in conformance with the previously adopted Initial Study/Mitigated Negative Declaration prepared for the associated development application (15PLN-0003); and B. Approve the subject final map pursuant to Palo Alto Municipal Code Section 21.16 and the Subdivision Map Act. MOTION PASSED: 6-0 Kniss absent 7. Direct the City Manager or his Designee to either: 1) Sell 335 Webster Street; or 2) Pursue the City's Right to Purchase the Former City Manager’s 33.8 Percent Interest in the Property Located at 335 Webster Street (Assessor’s Parcel Number 120-02-089). DRAFT ACTION MINUTES Page 3 of 4 City Council Meeting Draft Action Minutes: 4/8/2019 MOTION: Council Member Tanaka moved, seconded by Council Member Cormack to authorize the sale of the former City Manager’s property located at 335 Webster Street (Assessor’s Parcel Number 120-02-089) and authorize the City Manager to sign documentation authorizing the sale of the property to the highest and most qualified bidder. AMENDMENT: Council Member DuBois moved, seconded by Council Member XX to add to the Motion, “and direct Staff to return with an Agenda Item to discuss reserving sale proceeds for future employee housing.” AMENDMENT RESTATED AND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “and direct Staff to refer an Agenda Item to the Finance Committee for discussion of reserving sale proceeds for future employee housing as part of budget deliberations.” MOTION AS AMENDED RESTATED: Council Member Tanaka moved, seconded by Council Member Cormack to authorize the sale of the former City Manager’s property located at 335 Webster Street (Assessor’s Parcel Number 120-02-089); authorize the City Manager to sign documentation authorizing the sale of the property to the highest and most qualified bidder; and direct Staff to refer an Agenda Item to the Finance Committee for discussion of reserving sale proceeds for future employee housing as part of budget deliberations. MOTION AS AMENDED FAILED: 3-3 Cormack, Kou, Tanaka yes, Kniss absent MOTION: Vice Mayor Fine moved, seconded by Mayor Filseth to direct Staff to pursue the City’s Option to purchase the former City Manager’s 33.8% interest in the property located at 335 Webster Street (Assessor’s Parcel Number 120-02-089) and direct the Finance Committee to include these costs as part of Budget deliberations. MOTION FAILED: 3-3 DuBois, Filseth, Fine yes, Kniss absent MOTION: Mayor Filseth moved, seconded by Vice Mayor Fine to direct Staff to return with this Agenda Item on April 22, 2019 with additional financial information and a full City Council. MOTION FAILED: 3-3 DuBois, Filseth, Fine yes, Kniss absent MOTION: Council Member DuBois moved, seconded by Council Member Tanaka to authorize the sale of the former City Manager’s property located at 335 Webster Street (Assessor’s Parcel Number 120-02-089) and authorize DRAFT ACTION MINUTES Page 4 of 4 City Council Meeting Draft Action Minutes: 4/8/2019 the City Manager to sign documentation authorizing the sale of the property to the highest and most qualified bidder and direct Staff to refer an Agenda Item to the Finance Committee for discussion of reserving sale proceeds for future employee housing as part of Budget deliberations. MOTION PASSED: 4-2 Filseth, Fine no, Kniss absent State/Federal Legislation Update/Action None. Adjournment: The meeting was adjourned at 8:40 P.M. City of Palo Alto (ID # 9258) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/22/2019 City of Palo Alto Page 1 Summary Title: Restating Deferred Compensation Plan Title: Adoption of a Resolution Amending the City of Palo Alto's Deferred Compensation Plan for Regular Employees, and Incorporating an Employer Contribution Provision and Loan Provision by Adoption of the Amended Deferred Compensation Plan and Trust Document From: City Manager Lead Department: Human Resources Recommendation Staff recommends that Council adopt the attached resolution amending the City of Palo Alto’s Deferred Compensation Plan and Trust Document for regular employees to allow for: (1) employer matching contributions; and (2) employee loans. Background The City of Palo Alto has provided benefitted City employees with a deferred compensation plan under Section 457 of the Internal Revenue Code (IRC) since 1982. The deferred compensation plan enables employees to voluntarily defer portions of their income on a pre-tax basis as a supplemental retirement plan. The deferred compensation accounts are administered by ICMA and Mass Mutual, and approximately 500 City employees currently participate in the plan. All administrative fees are paid by the participating employees and there are no direct costs to the City. From time-to- time, the deferred compensation plan has been amended as needed to comply with the requirements of Section 457 and related tax law. Discussion It is administratively necessary to amend the deferred compensation plan to implement employer matching contributions as adopted by Council in recent bargaining agreements with IAFF (International Association of Fire Fighters), FCA (Fire Chiefs Association), PAPOA (Palo Alto Police Officers Association) and UMPAPA (Utilities Management Association of Palo Alto). In addition to reflecting changes bargained with the employee unions, the City wishes to amend the plan to allow employees to take loans from their own 457 plans. The City of Palo Alto Page 2 employee loans may assist employees with home ownership, education expenses, major medical expenses, child and elder care or other personal and family needs. Employees may borrow up to 50% of their deposited funds, which the employee pays back to their account with interest through ACH deductions. Once approved, the employee loan option will be established when administratively feasible by City Staff. Resource Impact There are no direct costs to the City for allowing employer contributions or employee loans, as all administrative fees are paid by the participating employee. The actual cost of employer contributions that are negotiated between the City and employee unions are included in the cost of the bargaining package and budgeted accordingly. Attachments: • Attachment A: Resolution • Attachment B: Restated Deferred Compensation Plan Document (including Employer Matching & Loan provision) Resolution No.__________ RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING AND RESTATING THE CITY OF PALO ALTO’S DEFERRED COMPENSATION PLAN FOR REGULAR EMPLOYEES, AND INCORPORATING EMPLOYER CONTRIBUTIONS, LOAN PROVISION AND 457 ROTH PROVISION, AS AMENDED WHEREAS, the Council has previously approved and adopted the City of Palo Alto Deferred Compensation Plan (“Plan”) to provide employees of the City of Palo Alto with retirement benefits. WHEREAS, the Council does hereby declare the intention of the City of Palo Alto to continue the Plan, but reserves the right to terminate or amend the Plan at any time. WHEREAS, the members of the Council are hereby jointly and severally authorized to take such actions and to execute such documents as they deem necessary or desirable in order to carry out the intent of the foregoing resolutions and required under the Plan to make the Plan fully effective in accordance with its terms and intent. NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Palo Alto hereby approves the amended and restated City Of Palo Alto Deferred Compensation Plan for Regular Employees. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: ________________________________ ________________________________ City Clerk Mayor ________________________________ ________________________________ City Attorney City Manager GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 CITY OF PALO ALTO DEFERRED COMPENSATION PLAN Effective Date of This Document January 1, 2018 Neither MassMutual nor any of its employees can provide legal or tax advice in connection with the execution of this specimen document. Prior to execution of this document, you should consult with your legal or tax advisor on whether this document is appropriate for your plan. GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 TABLE OF CONTENTS PREAMBLE .................................................................................................................................. 1 SECTION I DEFINITIONS ......................................................................................................... 2 1.1 Plan Definitions ............................................................................................................2 SECTION II PARTICIPATION AND CONTRIBUTIONS ..................................................... 5 2.1 Eligibility .......................................................................................................................5 2.2 Election ..........................................................................................................................5 2.3 Commencement of Participation ................................................................................6 2.4 Amendment of Annual Deferral Election, Investment Direction, or Beneficiary Designation ...............................................................................................6 2.5 Information Provided by the Participant ...................................................................6 2.6 Contributions Made Promptly ....................................................................................6 2.7 Employer Contributions ..............................................................................................6 2.8 Leave of Absence ..........................................................................................................7 2.9 Disability .......................................................................................................................7 2.10 Protection of Persons Who Serve in a Uniformed Service .......................................7 2.11 Corrective Measures ....................................................................................................7 SECTION III LIMITATIONS ON AMOUNTS DEFERRED ................................................. 8 3.1 Basic Annual Limitation ..............................................................................................8 3.2 Age 50 Catch-up Annual Deferral Contributions .....................................................8 3.3 Special Section 457 Catch-up Limitation ...................................................................8 3.4 Special Rules .................................................................................................................9 3.5 Correction of Excess Deferrals ..................................................................................10 SECTION IV INVESTMENT RESPONSIBILITIES ............................................................. 11 4.1 Investment of Deferred Amount ...............................................................................11 4.2 Investment Election for Future Contributions ........................................................11 4.3 Investment Changes for an Existing Account Balance ...........................................11 4.4 Investment Responsibility ..........................................................................................11 4.5 Default Investment Fund ...........................................................................................11 4.6 Statements ...................................................................................................................12 SECTION V LOANS .................................................................................................................. 13 5.1 Loans ...........................................................................................................................13 5.2 Maximum Loan Amount ...........................................................................................13 5.3 Terms of Loan ............................................................................................................13 5.4 Security for Loan; Default .........................................................................................15 5.5 Repayment ..................................................................................................................15 SECTION VI DISTRIBUTIONS ............................................................................................... 16 6.1 Distributions from the Plan .......................................................................................16 6.2 Benefit Distributions Upon Severance from Employment......................................16 i GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 6.3 Distributions on Account of Participant's Death .................................................... 17 6.4 Distribution of Small Account Balances Without Participant's Consent ............. 17 6.5 Forms of Distribution ............................................................................................... 18 6.6 Minimum Distribution Requirements ..................................................................... 18 6.7 Payments to Minors and Incompetents ................................................................... 24 6.8 Procedure When Distributee Cannot Be Located .................................................. 24 6.9 Direct Rollover .......................................................................................................... 24 6.10 Inservice Distributions .............................................................................................. 25 6.11 Qualified Distributions for Retired Public Safety Officers .................................... 28 SECTION VII ROLLOVERS AND PLAN TRANSFERS ...................................................... 29 7.1 Eligible Rollover Contributions to the Plan ............................................................ 29 7.2 Plan-to-Plan Transfers to the Plan .......................................................................... 29 7.3 Plan-to-Plan Transfers from the Plan ..................................................................... 30 7.4 Permissive Service Credit Transfers ....................................................................... 31 SECTION VIII BENEFICIARY ............................................................................................... 32 8.1 Beneficiary Designation ............................................................................................ 32 SECTION IX ADMINISTRATION AND ACCOUNTING .................................................... 33 9.1 Administrator ............................................................................................................ 33 9.2 Administrative Costs ................................................................................................. 33 9.3 Paperless Administration ......................................................................................... 33 SECTION X AMENDMENTS ................................................................................................... 35 10.1 Amendment ................................................................................................................ 35 10.2 Conformation ............................................................................................................ 35 10.3 Plan Termination ...................................................................................................... 35 SECTION XI TRUST FUND ..................................................................................................... 36 11.1 Trust Fund ................................................................................................................. 36 SECTION XII MISCELLANEOUS .......................................................................................... 37 12.1 Non-Assignability ...................................................................................................... 37 12.2 Domestic Relation Orders ........................................................................................ 37 12.3 IRS Levy..................................................................................................................... 37 12.4 Mistaken Contributions ............................................................................................ 37 12.5 Employment ............................................................................................................... 38 12.6 Successors and Assigns ............................................................................................. 38 12.7 Written Notice ........................................................................................................... 38 12.8 Total Agreement ........................................................................................................ 38 12.9 Gender ........................................................................................................................ 38 12.10 Controlling Law ........................................................................................................ 38 EMPLOYER ADOPTION PAGE ............................................................................................. 39 ii 1 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 457(b) PLAN DOCUMENT DEFERRED COMPENSATION PLAN PREAMBLE Adoption of Plan The City of Palo Alto Deferred Compensation Plan (hereinafter "the Plan"), an eligible deferred compensation plan within the meaning of Section 457(b) of the Internal Revenue Code of 1986, as amended (hereinafter the "Code"), of a State or local government as described in Code Section 457(e)(1)(A), adopted by City of Palo Alto (hereinafter the "Employer") effective January 1, 2018. Purpose of Plan The primary purpose of this Plan is to permit Employees of the Employer to enter into an agreement which will provide for deferral of payment of a portion of his or her current compensation until death, retirement, severance from employment, or other event, in accordance with the provisions of the Code Section 457(b), with other applicable provisions of the Code, and in accordance with the General Statutes of the State. Status of Plan It is intended that the Plan shall qualify as an eligible deferred compensation plan within the meaning of Code Section 457(b) sponsored by an eligible employer within the meaning of Code Section 457(e)(1)(A), i.e., a State, political subdivision of a State, and agency or instrumentality of a State or political subdivision of a State. Tax Consequences of Plan The Employer does not and cannot represent or guarantee that any particular federal or State income, payroll, or other tax consequence will occur by reason of participation in this Plan. A Participant should consult with his or her own counsel or other representative regarding all tax or other consequences of participation in this Plan. 2 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 SECTION I DEFINITIONS 1.1 Plan Definitions For purposes of this Plan, the following words and phrases have the meaning set forth below, unless a different meaning is plainly required by the context: An "Account Balance" means the bookkeeping account maintained with respect to each Participant which reflects the value of the deferred Compensation credited to the Participant, including the Participant's Annual Deferrals, the earnings or loss of the Trust Fund (net of Trust Fund expenses) allocable to the Participant, any transfers for the Participant's benefit, and any distribution made to the Participant or the Participant's Beneficiary. If a Participant has more than one Beneficiary at the time of the Participant's death, then a separate Account Balance shall be maintained for each Beneficiary. The Account Balance includes any account established under Section VII for rollover contributions and plan-to-plan transfers made for a Participant, the account established for a Beneficiary after a Participant's death, and any account or accounts established for an alternate payee (as defined in Code Section 414(p)(8)). The "Administrator" means the Employer. The term Administrator includes any person or persons, committee, or organization appointed by the Employer to administer the Plan. An "Annual Deferral" means the amount of Compensation deferred in any calendar year. The "Beneficiary" of a Participant means the person or persons (or, if none, the Participant's estate) who is entitled under the provisions of the Plan to receive a distribution in the event the Participant dies before receiving distribution of his or her entire interest under the Plan. The "Code" means the Internal Revenue Code of 1986, as now in effect or as hereafter amended from time to time. Reference to a Code Section includes such section and any comparable section or sections of any future legislation that amends, supplements, or supersedes such section. The "Compensation" of a Participant means all cash compensation for services to the Employer, including salary, wages, fees, commissions, bonuses, and overtime pay, that is includible in the Employee's gross income for the calendar year, including, as applicable, compensation attributable to services as an independent contractor, plus amounts that would be cash compensation for services to the Employer includible in the Employee's gross income for the calendar year but for a compensation reduction election under Code Section 125, 132(f), 401(k), 403(b), or 457(b) (including an election to defer compensation under Section II). Any payments described below made to a Participant after a Severance from Employment shall qualify as Compensation for purposes of the Plan, but only if the payments are made by the later of (a) the end of the calendar year in which the Severance from Employment occurred or (b) within 2 ½ months of such Severance from Employment: 3 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 (a) Payments that, absent a Severance from Employment, would have been paid to the Participant while the Participant continued in employment with the Employer, but only if such payments constitute regular compensation for services during the Participant's regular working hours, compensation for services outside the Participant's regular working hours (such as overtime or a shift differential), commissions, bonuses or other similar compensation. (b) Payments for accrued bona fide sick, vacation or other leave, but only if the Participant would have been able to use the leave if employment had continued. Any payment that is not described above shall not be considered Compensation if it is paid after the date of the Participant's Severance from Employment, even if it is paid within 2 ½ months of such date. Thus, for example, Compensation does not include severance pay. For years beginning after December 31, 2008, (a) a Participant receiving a differential wage payment, as defined by Code §3401(h)(2), by reason of qualified military service (within the meaning of Code Section 414(u)), is treated as an Employee of the Employer making the payment and (b) the differential wage payment is treated as Compensation. An "Employee" means each natural person who is employed by the Employer as a common law employee on a full time basis or on a part-time basis and any employee in an elected or appointed position; provided, however, that the term Employee shall not include a leased employee or any employee who is included in a unit of employees covered by a collective bargaining agreement that does not specifically provide for participation in the Plan. Any individual who is not treated by the Employer as a common law employee of the Employer shall be excluded from Plan participation even if a court or administrative agency determines that such individual is a common law employee of the Employer, unless the Employer has included the individual in Plan participation as an independent contractor. An "Employer" means the eligible employer (within the meaning of Code Section 457(e)(1)) that has adopted the Plan. In the case of an eligible employer that is an agency or instrumentality of a political subdivision of a State within the meaning of Code Section 457(e)(1)(A), the term Employer shall include any other agency or instrumentality of the same political subdivision that has adopted the Plan. "Includible Compensation" means, with respect to a taxable year, the Participant’s compensation as defined in Code Section 415(c)(3) and the regulations thereunder, for services performed for the Employer. The amount of Includible Compensation is determined without regard to any community property laws. "Normal Retirement Age" means age 65. In the event a Participant is a qualified police or firefighter (as defined under Code Section 415(b)(2)(H)(ii)(I)) Normal Retirement Age means age 40. 4 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 A Participant’s Normal Retirement Age must be the same as his or her normal retirement age under any other eligible deferred compensation plan or plans sponsored by the Employer. The designation of a Normal Retirement Age under the Plan does not compel retirement with the Employer. The "Participant" means an individual who is currently deferring Compensation, or who has previously deferred Compensation under the Plan by salary reduction and who has not received a distribution of his or her entire benefit under the Plan. Only individuals who perform services for the Employer as an Employee may defer Compensation under the Plan. "Plan Year" means the calendar year. "Severance from Employment" means the date that the Employee dies, retires, or otherwise has a severance from employment with the Employer, as determined by the Administrator (and taking into account guidance issued under the Code). Solely for the purpose of determining whether the Participant is entitled to receive a distribution of his or her Account Balance pursuant to Section 6.2, a Participant shall be treated as having incurred a severance from employment during any period the Participant is performing service in the uniformed services (as defined in chapter 43 of title 38, United States Code) while on active duty for a period of more than 30 days. The "State" means the State that is the Employer or of which the Employer is a political subdivision, and any agency, or instrumentality, including any agency or instrumentality of a political subdivision of the State, or the State in which the Employer is located. The "Trust Fund" means the trust fund created under and subject to a trust agreement or a custodial account or contract described in Code Section 401(f) held on behalf of the Plan. The "Valuation Date" means each business day. 5 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 SECTION II PARTICIPATION AND CONTRIBUTIONS 2.1 Eligibility Each Employee shall be eligible to participate in the Plan and defer Compensation hereunder immediately upon becoming employed by the Employer. 2.2 Election An Employee may elect to become a Participant by executing an election to defer a portion of his or her Compensation (and to have that amount contributed as an Annual Deferral on his or her behalf) and filing such election with the Administrator. This participation election shall be made on the deferral agreement provided by the Administrator under which the Employee agrees to be bound by all the terms and conditions of the Plan. Any such election shall remain in effect until a new election is filed. The Administrator may establish a minimum deferral amount, and may change such minimums from time to time. The deferral agreement shall also include designation of investment funds and a designation of Beneficiary. (a) Special Deferral Election of Sick, Vacation, or Back Pay: A Participant who has not had a Severance from Employment may authorize a special election to defer accumulated sick pay, accumulated vacation pay, and back pay for any calendar month if an election to defer is entered into before the beginning of the month in which the amounts would otherwise be paid or made available and the Participant is an Employee on the date the amounts would otherwise be paid or made available. For this purpose, Compensation that would otherwise be paid for a payroll period that begins before Severance from Employment is treated as an amount that would otherwise be paid or made available before an Employee has a Severance from Employment. In addition, a Participant who is a former Employee may authorize a special election to defer accumulated sick pay, accumulated vacation pay, and back pay that is paid by the later of 2 ½ months following the date of the Participant's Severance from Employment or the end of the calendar year in which the Severance from Employment occurred, provided that the special election to defer is entered into before the amount is currently available. (b) Special Deferral Election On Bonus Pay: Participant may authorize a special election to defer on that portion of his or her Compensation that is attributable to any Employer paid cash bonuses made for the Plan Year in an amount up to 100% of such bonus, in which case the general deferral agreement under Section 2.2 shall not apply to that portion of Compensation that is attributable to any Employer paid cash bonuses made for the Plan Year. The Employer may designate the bonuses for which the special reduction authorization is available; provided, however, that such designation shall be made on a uniform and non-discriminatory basis. These amounts may be deferred for any calendar month only if an agreement providing for the special election to defer on bonus pay is entered into before the beginning of the month in which the amounts would otherwise be 6 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 paid or made available and the Participant is an Employee on the date the amounts would otherwise be paid or made available. 2.3 Commencement of Participation An Employee shall become a Participant as soon as administratively practicable following the date the Employee files an election pursuant to Section 2.2. Such election shall become effective no later than the calendar month following the month in which the election is made. A new Employee may defer compensation payable in the calendar month during which the Participant first becomes an Employee if an agreement providing for the deferral is entered into on or before the first day on which the Participant performs services for the Employer. 2.4 Amendment of Annual Deferral Election, Investment Direction, or Beneficiary Designation Subject to other provisions of the Plan, a Participant may at any time revise his or her participation election, including a change of the amount of his or her Annual Deferrals, his or her investment direction and his or her designated Beneficiary. Unless the election specifies a later effective date, a change in the amount of the Annual Deferrals shall take effect as of the first day of the next following month or as soon as administratively practicable if later. A change in the investment direction shall take effect as of the date provided by the Administrator on a uniform basis for all Employees. A change in the Beneficiary designation shall take effect when the election is accepted by the Administrator. 2.5 Information Provided by the Participant Each Employee enrolling in the Plan should provide to the Administrator at the time of initial enrollment, and later if there are any changes, any information necessary or advisable for the Administrator to administer the plan, including, without limitation, whether the Employee is a participant in any other eligible plan under Code Section 457(b). 2.6 Contributions Made Promptly Annual Deferrals by the Participant under the Plan shall be transferred to the Trust Fund within a period that is not longer than is reasonable for the proper administration of the Participant's Account Balance. For this purpose, Annual Deferrals shall be treated as contributed within a period that is not longer than is reasonable for the proper administration if the contribution is made to the Trust Fund within 15 business days following the end of the month in which the amount would otherwise have been paid to the Participant, or earlier if required by law. 2.7 Employer Contributions Nothing in this Plan prohibits the Employer from making annual deferrals to the Account Balance of a Participant on a non-elective basis, subject to the Participant's contribution limits in Section III. 7 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 2.8 Leave of Absence Unless an election is otherwise revised, if a Participant is absent from work by leave of absence, Annual Deferrals under the Plan shall continue to the extent that Compensation continues. 2.9 Disability A disabled Participant (as determined by the Administrator) may elect Annual Deferrals during any portion of the period of his or her disability to the extent that he or she has actual Compensation (not imputed Compensation and not disability benefits) from which to make contributions to the Plan and has not had a Severance from Employment. 2.10 Protection of Persons Who Serve in a Uniformed Service An Employee whose employment is interrupted by qualified military service under Code Section 414(u) or who is on a leave of absence for qualified military service under Code Section 414(u) may elect to make additional Annual Deferrals upon resumption of employment with the Employer equal to the maximum Annual Deferrals that the Employee could have elected during that period if the Employee's employment with the Employer had continued (at the same level of Compensation) without the interruption or leave, reduced by the Annual Deferrals, if any, actually made for the Employee during the period of the interruption or leave. This right applies for five years following the resumption of employment (or, if sooner, for a period equal to three times the period of the interruption or leave). A reemployed Employee shall also be entitled to an allocation of any additional Employer Contributions, if applicable, that such Employee would have received under the Plan had the Employee continued to be employed as an eligible Employee during the period of qualified military service. Such restorative Employer Contributions (without interest), if applicable, shall be remitted by the Employer to the Plan on behalf of the Employee within 90 days after the date of the Employee's reemployment or, if later, as of the date the contributions are otherwise due for the year in which the applicable qualified military service was performed. 2.11 Corrective Measures In the event that an otherwise eligible Employee is erroneously omitted from Plan participation, or an otherwise ineligible individual is erroneously included in the Plan, the Employer shall take such corrective measures as may be permitted by applicable law. Such measures may include, in the case of an erroneously omitted Employee, contributions made by the Employer to the Plan on behalf of such Employee equal to the missed deferral opportunity, subject to the Participant's contribution limits in Section III, and, in the case of an erroneously included individual, a payment by the Employer to such individual of additional compensation in an amount equal to the amount of the individual's elective deferrals under the Plan. 8 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 SECTION III LIMITATIONS ON AMOUNTS DEFERRED 3.1 Basic Annual Limitation (a) The maximum amount of the Annual Deferral and, if applicable, Employer Contributions under the Plan for any calendar year shall not exceed the lesser of: (i) The "applicable dollar amount" (as defined in paragraph (b) below); or (ii) The Participant's Includible Compensation for the calendar year. (b) The "applicable dollar amount" means the amount established under Code Section 457(e)(15), as indexed, and in accordance with Section 3.4(a). (c) Rollover amounts received by the Plan under Treasury Regulation Section 1.457-10(e) and any plan-to-plan transfer into the Plan made pursuant to Section 7.2 shall not be applied against the Annual Deferral limit. 3.2 Age 50 Catch-up Annual Deferral Contributions A Participant who will attain age 50 or more by the end of a calendar year is permitted to elect an additional amount of Annual Deferral for the calendar year, up to the maximum age 50 catch-up Annual Deferral limit under §414(v)(2), as indexed. The amount of the age 50 catch-up Annual Deferral for any calendar year cannot exceed the amount of the Participant's Compensation, reduced by the amount of the elective deferred compensation, or other elective deferrals, made by the Participant under the Plan and in accordance with Section 3.4(a). The age 50 catch-up Annual Deferral limit is not available to a Participant for any calendar year for which the Special Section 457 Catch-up Limitation described in Section 3.3 is available and applied. 3.3 Special Section 457 Catch-up Limitation Notwithstanding the provisions of Sections 3.1 and 3.2, with respect to a year that is one of a Participant's last three (3) calendar years ending before the year in which the Participant attains Normal Retirement Age and the amount determined under this Section 3.3 exceeds the amount computed under Sections 3.1 and 3.2, then the Annual Deferral limit under this Section 3.3 shall be the lesser of: (a) An amount equal to two (2) times the Section 3.1 Applicable Dollar Amount for such year; or (b) The sum of: 9 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 (i) An amount equal to (A) the aggregate Section 3.1 limit for the current year plus each prior calendar year beginning after December 31, 2001, during which the Participant was an Employee under the Plan, minus (B) the aggregate amount of Compensation that the Participant deferred under the Plan during such years, plus (ii) An amount equal to (A) the aggregate limit referred to in Code Section 457(b)(2) for each prior calendar year beginning after December 31, 1978, and before January 1, 2002, during which the Participant was an Employee (determined without regard to Sections 3.2 and 3.3), minus (B) the aggregate contributions to Pre-2002 Coordination Plans (as defined in Section 3.4(c)) made by or on behalf of the Participant for such years. However, in no event can the deferred amount be more than the Participant's Compensation for the year. 3.4 Special Rules For purposes of this Section III, the following rules shall apply: (a) Participant Covered By More Than One Eligible Plan. If the Participant is or has been a participant in one or more other eligible plans within the meaning of Code Section 457(b), then this Plan and all such other plans shall be considered as one plan for purposes of applying the foregoing limitations of this Section III. For this purpose, the Administrator shall take into account any other such eligible plan maintained by the Employer and shall also take into account any other such eligible plan for which the Administrator receives from the Participant sufficient information concerning his or her participation in such other plan. (b) Pre-Participation Years. In applying Section 3.3, a year shall be taken into account only if (i) the Participant was eligible to participate in the Plan during all or a portion of the year and (ii) Compensation deferred, if any, under the Plan during the year was subject to the Basic Annual Limitation described in Section 3.1 or any other plan ceiling required by Code Section 457(b). (c) Pre-2002 Coordination Years. For purposes of Section 3.3(b)(ii)(B), "contributions to Pre-2002 Coordination Plans" means any employer contribution, salary reduction or elective contribution under any other eligible Code Section 457(b) plan, or a salary reduction or elective contribution under any Code Section 401(k) qualified cash or deferred arrangement, Code Section 402(h)(1)(B) simplified employee pension (SARSEP), Code Section 403(b) annuity contract, and Code Section 408(p) simple retirement account, or under any plan for which a deduction is allowed because of a contribution to an organization described in Code Section 501(c)(18), including plans, arrangements or accounts maintained by the Employer or any employer for whom the Participant performed services. However, the contributions for any calendar year are only taken into account for purposes of Section 3.3(b)(ii)(B) to the extent that the total of such contributions does not exceed the aggregate limit referred to in Code Section 457(b)(2) for that year. 10 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 (d) Disregard Excess Deferral. For purposes of Sections 3.1, 3.2, and 3.3, an individual is treated as not having deferred compensation under a plan for a prior taxable year if excess deferrals under the plan are distributed, as described in Section 3.5. To the extent that the combined deferrals for pre-2002 years exceeded the maximum deferral limitations, the amount is treated as an excess deferral for those prior years. 3.5 Correction of Excess Deferrals If the Annual Deferral on behalf of a Participant for any calendar year exceeds the limitations described above, or the Annual Deferral on behalf of a Participant for any calendar year exceeds the limitations described above when combined with other amounts deferred by the Participant under another eligible deferred compensation plan under Code Section 457(b) for which the Participant provides information that is accepted by the Administrator, then the Annual Deferral, to the extent in excess of the applicable limitation (adjusted for any income or loss in value, if any, allocable thereto), shall be distributed to the Participant as soon as administratively practicable after the Administrator determines that the amount is an excess deferral. 11 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 SECTION IV INVESTMENT RESPONSIBILITIES 4.1 Investment of Deferred Amount Each Participant or Beneficiary shall direct the investment of amounts held in his or her Account Balance under the Plan among the investment options of the Trust Fund. The investment of amounts segregated on behalf of an alternate payee pursuant to a Plan approved domestic relations order (as defined under Code Section 414(p)) may be directed by such alternate payee to the extent provided in such order. In the absence of such direction, such amounts shall be invested in the same manner as they were immediately before such segregation was made on account of such order. Each Account Balance shall share in any gains or losses of the investment(s) in which such account is invested. 4.2 Investment Election for Future Contributions A Participant may amend his or her investment election at such times and by such manner and form as prescribed by the Administrator. Such election will, unless specifically stated otherwise, apply only to future amounts contributed under the Plan. 4.3 Investment Changes for an Existing Account Balance The Participant, Beneficiary, alternate payee, or Administrator may elect to transfer amounts in his Account Balance among and between those investments available under the Trust Fund at such times and by such manner and form prescribed by the Administrator, subject further to any restrictions or limitations placed on any investment by the Administrator to be uniformly applied to all Participants. 4.4 Investment Responsibility To the extent that a Participant, Beneficiary, or alternate payee exercises control over the investment of amounts credited to his Account Balance, the Employer, the Administrator, and any other fiduciary of the Plan shall not be liable for any losses that are the direct and necessary result of investment instructions given by a Participant, Beneficiary or an alternate payee. 4.5 Default Investment Fund The Employer shall maintain a Default Investment Fund which shall be held and administered under the Trust Fund. Any Participant who does not make an investment election on the deferral agreement provided by the Administrator will have his contributions invested in the Default Investment Fund until such time he provides investment direction under Sections 4.2 and 4.3. Additionally, a Beneficiary or alternate payee who does not make an investment election will have his Account Balance invested in the Default Investment Fund until such time he provides investment direction under Section 4.3. The interest of each Participant, Beneficiary, or alternate payee under the Plan in the Default Investment Fund shall be an undivided interest. 12 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 4.6 Statements The Administrator will cause statements to be issued periodically to reflect the contributions and actual earnings posted to the Account Balances. 13 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 SECTION V LOANS 5.1 Loans The Employer may elect to make loans available to Participants who are Employees. If the Employer has elected to make loans available to Participants who are Employees, the Employer shall establish written guidelines governing the granting and administration of loans, which are hereby incorporated into and made part of the Plan provided that such guidelines are approved by the Administrator and are not inconsistent with the provisions of this Section V. To the extent such guidelines are more restrictive than the provisions of the Plan and are not inconsistent with the provisions of Code Section 72(p) and regulations issued thereunder, the guidelines shall be controlling. Except as modified by the Plan’s loan program policy and procedures adopted by the Administrator, the following rules shall apply to loans under the Plan. Any loans that are issued under the Plan shall be administered in a manner consistent with the requirements of Code Section 72(p), Treasury Regulations 1.72(p) and any other applicable guidance issued thereunder. 5.2 Maximum Loan Amount No loan to a Participant hereunder may exceed the lesser of: (a) $50,000, reduced by the excess (if any) of (i) the highest outstanding balance of loans from the Plan during the preceding one-year period ending on the day before the date the loan is approved by the Administrator (not taking into account any payments made during such one-year period) over (ii) the outstanding balance of loans from the Plan on the date the loan is approved by the Administrator; or (b) one half of the value of the Participant's Account Balance (as of the Valuation Date immediately preceding the date on which such loan is approved by the Administrator). For purposes of this Section 5.2, any loan from any other plan maintained by a participating employer shall be treated as if it were a loan made from the Plan, and the Participant's vested interest under any such other plan shall be considered a vested interest under this Plan; provided, however, that the provisions of this paragraph shall not be applied so as to allow the amount of a loan under this Section 5.2 to exceed the amount that would otherwise be permitted in the absence of this paragraph. 5.3 Terms of Loan The terms of the loan shall: (a) charge a reasonable interest rate commensurate with current interest rates charged for loans made under similar circumstances by persons in the business of lending money (subject to the requirements of the Servicemembers Civil Relief Act). 14 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 (b) require that the minimum loan term be 12 months; (c) require that the loan be repaid within five years unless the Participant certifies in writing to the Administrator that the loan is to be used to acquire any dwelling unit which within a reasonable time is to be used (determined at the time the loan is made) as a principal residence (as defined in Code Section 121) of the Participant; (d) require substantially level amortization of such loan with payments not less frequently than quarterly throughout the repayment period. If a loan is made from both a Participant's Roth Contribution account and his or her other accounts under the Plan, the level amortization requirement shall be met with respect to both his or her Roth Contributions account and his or her other accounts under the Plan. Notwithstanding the foregoing, if so provided in the written guidelines applicable to Plan loans, the amortization schedule may be waived and payments suspended while a Participant is on a leave of absence from employment with an Employer (for periods in which the Participant does not perform military service as described in paragraph (d)), provided that all of the following requirements are met: (i) Such leave is either without pay or at a reduced rate of pay that, after withholding for employment and income taxes, is less than the amount required to be paid under the amortization schedule; (ii) Payments resume after the earlier of (1) the date such leave of absence ends or (2) the one-year anniversary of the date such leave began; (iii) The period during which payments are suspended does not exceed one year; (iv) Payments resume in an amount not less than the amount required under the original amortization schedule; and (v) The waiver of the amortization schedule does not extend the period of the loan beyond the maximum period permitted under this Section 5.3. (e) If a Participant is absent from employment with any participating employer for a period during which he or she performs services in the uniformed services (as defined in chapter 45 of title 38 of the United States Code), whether or not such services constitute qualified military service, the suspension of payments shall not be taken into account for purposes of applying paragraph (d) of this Section 5.3 provided that all of the following requirements are met: (i) Payments resume upon completion of such military service; (ii) Payments resume in an amount not less than the amount required under the original amortization schedule and continue in such amount until the loan is repaid in full; 15 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 (iii) Upon resumption, payments are made no less frequently than required under the original amortization schedule and continue under such schedule until the loan is repaid in full; and (iv) The loan is repaid in full, including interest accrued during the period of such military service, no later than the maximum period otherwise permitted under this Section V extended by the period of such military service. (f) The loan shall be evidenced by a legally enforceable agreement that demonstrates compliance with the provisions of this Section. 5.4 Security for Loan; Default (a) Security. Any loan to a Participant under the Plan shall be secured by the pledge of the portion of the Participant's Account Balance in the Plan invested in such loan. (b) Default. In the event that a Participant fails to make a loan payment under this Section V on the last business day before the end of the calendar quarter following the quarter in which the payment is due, unless payment is not made because the Participant is on a bona fide leave of absence as determined by the Administrator and the amortization schedule is suspended while the Participant is on leave of absence from employment with an Employer, a default on the loan shall occur. In the event of such default, (i) all remaining payments on the loan shall be immediately due and payable (including accrued interest) at the time of the default, and (ii) interest shall continue to accrue on the outstanding loan balance until the loan is foreclosed. In the case of any default on a loan to a Participant, the Administrator shall apply the portion of the Participant's interest in the Plan held as security for the loan in satisfaction of the loan on the date of Severance from Employment. In addition, the Administrator may take any legal action it shall consider necessary or appropriate to enforce collection of the unpaid loan, with the costs of any legal proceeding or collection to be charged to the Account Balance of the Participant. Notwithstanding anything elsewhere in the Plan to the contrary, in the event a loan is outstanding hereunder on the date of a Participant's death, his or her estate shall be his or her Beneficiary as to the portion of his or her interest in the Plan invested in such loan (with the Beneficiary or Beneficiaries as to the remainder of his or her interest in the Plan to be determined in accordance with otherwise applicable provisions of the Plan). 5.5 Repayment A Participant shall be required, as a condition to receiving a loan, to enter into an agreement for the repayment of the loan in accordance with a method set forth in the written guidelines governing the granting of Plan loans that are established by the Employer pursuant to Section 5.1. A Participant may prepay the entire outstanding balance of his or her loan at any time (but may not make a partial prepayment). 16 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 SECTION VI DISTRIBUTIONS 6.1 Distributions from the Plan (a) Earliest Distribution Date. Payments from a Participant’s Account Balance shall not be made earlier than: (i) the Participant’s Severance from Employment pursuant to Section 6.2 (ii) the Participant’s death pursuant to Section 6.3 (iii) Plan termination under Section 10.3 (iv) an unforeseeable emergency withdrawal pursuant to Section 6.10(a), if permitted under the Plan (v) a de minimis account balance distribution pursuant to Section 6.10(b), if permitted under the Plan (vi) a rollover account withdrawal pursuant to Section 6.10(c), if permitted under the Plan (vii) attainment of age 70 ½ withdrawal pursuant to Section 6.10(d), if permitted under the Plan (viii) Qualified Military Service Deemed Severance withdrawal pursuant to Section 6.10(e), if permitted under the Plan (ix) Qualified Military Reservist withdrawal pursuant to Section 6.10(f), if permitted under the Plan (x) Qualified Distributions for Retired Public Safety Officers pursuant to Section 6.11, if permitted under the Plan (b) Latest Distribution Date. In no event shall any distribution under this Section VI begin later than the Participant’s "required beginning date". Such required minimum distributions must be made in accordance with Section 6.6. (c) Amount of Account Balance. Except as provided in Section 6.3, the amount of any payment under this Section VI shall be based on the amount of the Account Balance as of the Valuation Date. 6.2 Benefit Distributions Upon Severance from Employment Upon Severance from Employment (other than due to death), a Participant may elect to commence distribution of benefits at any time after such Severance from Employment by filing a request with 17 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 the Administrator before the date on which benefits are to commence. However, in no event may distribution of benefits commence later than his or her "required beginning date". Distributions required to commence under this section shall be made in the form of benefit provided under Section 6.5. Distributions postponed until the Participant’s "required beginning date" will be made in a manner that meets the requirements of Section 6.6. 6.3 Distributions on Account of Participant's Death Upon receipt of satisfactory proof of the Participant’s death, the designated Beneficiary may file a request with the Administrator to elect a form of benefit provided under Section 6.5 and made in a manner that meets the requirements of Section 6.6. (a) Death of Participant Before Distributions Begin. If the Participant dies before his or her distributions begin, the designated Beneficiary may elect to have distributions to be made (i) in full within 5 years of the Participant’s death (5-year rule) or (ii) in installments over the designated Beneficiary’s "life expectancy" (life expectancy rule). If the designated Beneficiary does not make an election by September 30 of the year following the year of the Participant's death, the Participant's Account Balance will be distributed in a lump sum payment by December 31 of the calendar year containing the fifth anniversary of the Participant's death or if the Participant’s spouse is the sole designated Beneficiary by December 31 of the year the Participant would have attained age 70 ½. (b) Death of Participant On or After Date Distributions Begin. If the Participant dies on or after his or her distributions began, the Participant's Account Balance shall be paid to the Beneficiary at least as rapidly as under the payment option used before the Participant's death. For purposes of this Section, a Participant who dies on or after January 1, 2007, while performing qualified military service (as defined in Code Section 414(u)) will be deemed to have resumed employment in accordance with the Participant's reemployment rights under chapter 43 of title 38, United States Code, on the day preceding death and to have terminated employment on the actual date of death for purposes of determining the entitlement of the Participant's survivors to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan, in accordance with the provisions of Code Sections 401(a)(37), 414(u)(9), and 457(g)(4). 6.4 Distribution of Small Account Balances Without Participant's Consent Notwithstanding any other provision of the Plan to the contrary, if the amount of a Participant’s or Beneficiary’s Account Balance (including the rollover contribution separate account) is not in excess of the amount specified below on the date that payments commence under Section 6.2 or on the date the Administrator is notified of the Participant's death, the Administrator may direct 18 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 payment without the Participant’s or Beneficiary’s consent as soon as practicable following the Participant's retirement, death, or other Severance from Employment. (a) The Plan does not provide for distribution of small Account Balances without Participant or Beneficiary consent. 6.5 Forms of Distribution In an election to commence benefits under Section 6.2, a Participant entitled to a distribution of benefits under this Section VI may elect to receive payment in any of the following forms of distribution: (a) a lump sum payment of the Participant’s total Account Balance. (b) partial distribution of the Participant’s Account Balance. (c) in a series of installments over a period of years (payable on a monthly, quarterly, semi-annual or annual basis) which extends no longer than the life expectancy of the Participant as permitted under Code Section 401(a)(9). (d) a purchase of a single premium nontransferable annuity contract for such term and in such form as the Participant selects that provides for payments in the form of an irrevocable annuity each calendar year of amounts not less than the amount required under Code Section 401(a)(9). 6.6 Minimum Distribution Requirements (a) General Rules. Notwithstanding anything in this Plan to the contrary, distributions from this Plan shall commence and be made in accordance with Code Section 401(a)(9) and the regulations promulgated thereunder. Additionally, the requirements of this Section 6.6 will take precedence over any inconsistent provisions of the Plan. (b) Time and Manner of Distribution. (i) Required Beginning Date. The Participant's entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant's "required beginning date". (ii) Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows: (A) If the Participant's surviving spouse is the Participant's sole "designated Beneficiary", then distributions to the surviving spouse will begin by 19 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 December 31 of the calendar year immediately following the calendar year in which the Participant dies, or by December 31 of the calendar year in which the Participant would have attained age 70 ½, if later. (B) If the Participant's surviving spouse is not the Participant's sole "designated Beneficiary" (i.e., multiple beneficiaries), then distributions to the "designated Beneficiaries" will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. (C) If the Participant's sole "designated Beneficiary" is not the Participant’s spouse, then distributions to the "designated Beneficiary" will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. (D) If there is no "designated Beneficiary" as of September 30 of the year following the year of the Participant's death, the Participant's Account Balance will be distributed in a lump sum payment by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (E) If the Participant's surviving spouse is the Participant's sole "designated Beneficiary" and the surviving spouse dies after the Participant but before distributions to the surviving spouse begin, this subparagraph (b)(ii), other than subsection (b)(ii)(A), will apply as if the surviving spouse were the Participant. For purposes of this subparagraph (ii) and paragraph (d), unless subsection (b)(ii)(D) applies, distributions are considered to begin on the Participant's "required beginning date". If subsection (b)(ii)(E) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under subsection (b)(ii)(A). If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant's "required beginning date" (or to the Participant's surviving spouse before the date distributions are required to begin to the surviving spouse under subsection (b)(ii)(A)), the date distributions are considered to begin is the date distributions actually commence. (iii) Death of Participant On or After Distributions Begin. If the Participant dies on or after distributions begin and before depleting his or her Account Balance, distributions must commence to the "designated Beneficiary" by December 31 of the calendar year immediately following the calendar year in which the Participant died. (iv) Forms of Distribution. Unless the Participant's Account Balance is distributed in the form of an annuity contract or in a lump sum on or before the Participant’s "required beginning date", as of the first distribution calendar year, distributions will be made in accordance with paragraphs (c) and (d). If the Participant's interest 20 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 is distributed in the form of an annuity contract, distributions thereunder will be made in accordance with the requirements of Code Section 401(a)(9). (c) Required Minimum Distributions During the Participant's Lifetime. (i) Amount of Required Minimum Distribution For Each "Distribution Calendar Year". During the Participant's lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of: (A) The quotient obtained by dividing the "Participant's account balance" by the distribution period in the Uniform Lifetime Table set forth in Treasury Regulation Section 1.401(a)(9)-9, Q&A-2 using the Participant's age as of the Participant's birthday in the "distribution calendar year"; or (B) if the Participant's sole "designated Beneficiary" for the "distribution calendar year" is the Participant's spouse and the spouse is more than 10 years younger than the Participant, the quotient obtained by dividing the "Participant's account balance" by the distribution period in the Joint and Last Survivor Table set forth in Treasury Regulation Section 1.401(a)(9)-9, Q&A-3 using the Participant's and spouse's attained ages as of the Participant's and spouse's birthdays in the "distribution calendar year". (ii) Lifetime Required Minimum Distributions Continue Through Year of Participant's Death. Required minimum distributions will be determined under this paragraph (c) beginning with the first "distribution calendar year" and up to and including the "distribution calendar year" that includes the Participant's date of death. (d) Required Minimum Distributions After Participant's Death. For purposes of this Section 6.6(d), the Participant’s and Beneficiary’s "life expectancy" determination will use the Single Life Table set forth in Treasury Regulation Section 1.401(a)(9)-9, Q&A-1. (i) Death On or After Date Distributions Begin. (A) Participant Survived by Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is a "designated Beneficiary", the minimum amount that will be distributed for each "distribution calendar year" after the year of the Participant's death is the quotient obtained by dividing the "Participant's account balance" by the longer of the remaining "life expectancy" of the Participant or the remaining "life expectancy" of the Participant's "designated Beneficiary", determined as follows: 21 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 (1) The Participant's remaining "life expectancy" is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (2) If the Participant's surviving spouse is the Participant's sole "designated Beneficiary", the remaining "life expectancy" of the surviving spouse is calculated for each "distribution calendar year" after the year of the Participant's death using the surviving spouse's age as of the spouse's birthday in that year. For "distribution calendar years" after the year of the surviving spouse's death, the remaining "life expectancy" of the surviving spouse is calculated using the age of the surviving spouse as of the spouse's birthday in the calendar year of the spouse's death, reduced by one for each subsequent calendar year. (3) If the Participant's surviving spouse is not the Participant's sole "designated Beneficiary" (i.e., multiple beneficiaries), the "designated Beneficiary's" remaining "life expectancy" is calculated using the age of the oldest Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (4) If the Participant's sole "designated beneficiary" is not the Participant’s spouse, the "designated Beneficiary's" remaining "life expectancy" is calculated using the age of the Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (B) No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no "designated Beneficiary" as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed for each "distribution calendar year" after the year of the Participant's death is the quotient obtained by dividing the "Participant's account balance" by the Participant's remaining "life expectancy" calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. (ii) Death Before Date Distributions Begin. (A) Participant Survived by Designated Beneficiary. Except as provided in this Section, if the Participant dies before the date distributions begin and there is a "designated Beneficiary", the minimum amount that will be distributed for each "distribution calendar year" after the year of the Participant's death is the quotient obtained by dividing the "Participant's account balance" by the remaining "life expectancy" of the Participant's "designated Beneficiary", determined as follows: 22 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 (1) If the Participant's surviving spouse is the Participant's sole "designated Beneficiary", the remaining "life expectancy" of the surviving spouse is calculated for each "distribution calendar year" after the year of the Participant's death using the surviving spouse's age as of the spouse's birthday in that year. (2) If the Participant's surviving spouse is not the Participant's sole "designated Beneficiary" (i.e., multiple beneficiaries), the "designated Beneficiary's" remaining "life expectancy" is calculated using the age of the oldest Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (3) If the Participant's sole "designated beneficiary" is not the Participant’s spouse, the "designated Beneficiary's" remaining "life expectancy" is calculated using the age of the Beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year. (B) No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no "designated Beneficiary" as of September 30 of the year following the year of the Participant's death, distribution of the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death. (C) Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the Participant dies before the date distributions begin, the Participant's surviving spouse is the Participant's sole "designated Beneficiary", and the surviving spouse dies before distributions are required to begin to the surviving spouse under subsection (b)(ii)(A), this subparagraph (d)(ii) will apply as if the surviving spouse were the Participant. (e) Definitions. (i) A Participant’s "required beginning date" is April 1 of the year that follows the later of (1) the calendar year the Participant attains age 70 ½ or (2) retires due to Severance from Employment. If the Participant postpones the required distribution due in calendar year he or she attains age 70 ½ or severs employment, to the "required beginning date", the second required minimum distribution must be taken by the end of that year. (ii) Participant’s "designated Beneficiary" means the individual who is designated as the Beneficiary under Section 8.1 and is the designated Beneficiary under Code Section 401(a)(9) and Treasury Regulation Section 1.401(a)(9)-4. 23 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 (iii) A "distribution calendar year" means a calendar year for which a minimum distribution is required. For distributions beginning before the Participant's death, the first "distribution calendar year" is the calendar year the Participant attains age 70 ½ or retires, if later. For distributions beginning after the Participant's death, the first "distribution calendar year" is the calendar year in which distributions are required to begin under subparagraph (b)(ii). The required minimum distribution for the Participant's first "distribution calendar year" will be made on or before the Participant's "required beginning date". The required minimum distribution for other "distribution calendar years", including the required minimum distribution for the "distribution calendar year" in which the Participant's "required beginning date" occurs, will be made on or before December 31 of that "distribution calendar year". (iv) A married Participant’s "life expectancy", whose spouse is the sole Beneficiary and is more than 10 years younger than the Participant, means the Participant’s and spouse Beneficiary’s life expectancy as computed by use of the Joint and Last Survivor Life Table under Treasury Regulation Section 1.401(a)(9)-9, Q&A 3. All other Participants will have his or her life expectancy computed by use of the Uniform Lifetime Table under Treasury Regulation Section 1.401(a)(9)-9, Q&A 2. A deceased Participant’s or Beneficiary’s "life expectancy" means his or her life expectancy as computed by use of the Single Life Table under Treasury Regulation Section 1.401(a)(9)-9, Q&A 1. (v) A "Participant's account balance" means the Account Balance as of the last valuation date in the calendar year immediately preceding the "distribution calendar year" (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the Account Balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the valuation date. The Account Balance for the valuation calendar year includes any amounts rolled over or transferred to the Plan either in the valuation calendar year or in the "distribution calendar year" if distributed or transferred in the valuation calendar year. (f) Special Provision Applicable to 2009 Required Minimum Distributions. A Participant who would otherwise be required to receive a minimum distribution from the Plan in accordance with Code Section 401(a)(9) for the 2009 "distribution calendar year" may elect not to receive any such distribution that is payable with respect to the 2009 "distribution calendar year". Notwithstanding the provisions of Section 6.9(b)(iii), the Administrator may permit a Participant who receives a minimum distribution from the Plan for the 2009 "distribution calendar year" to make a direct rollover of such distribution to an "eligible retirement plan" in accordance with the provisions of Section 6.9. 24 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 The Administrator may also permit a Participant or former Participant who has received a minimum distribution for the 2009 "distribution calendar year" to roll over such distribution back into the Plan, provided the requirements of Code Section 402(c), as modified by Notice 2009-82, extending the 60-day rollover deadline, and the requirements of Section 7.1 are otherwise satisfied. If the distribution received by the Participant included amounts in addition to the minimum required under Code Section 401(a)(9), the Administrator may allow the Participant to include a portion or all of the amount that was not a minimum distribution in the Rollover Contribution made to the Plan in accordance with this paragraph. The provisions of this Section 6.6(f) are effective for minimum payments made for the 2009 "distribution calendar year" and do not include any minimum payment that is made in 2009, but is attributable to a different year (i.e., the participant reached his required beginning date in 2008, but payment of the 2008 minimum is not made until 2009). 6.7 Payments to Minors and Incompetents If a Participant or Beneficiary entitled to receive any benefits hereunder is a minor or is adjudged to be legally incapable of giving valid receipt and discharge for such benefits, or is deemed so by the Administrator, benefits will be paid to such person as the Administrator or a court of competent jurisdiction may designate for the benefit of such Participant or Beneficiary. Such payments shall be considered a payment to such Participant or Beneficiary and shall, to the extent made, be deemed a complete discharge of any liability for such payments under the Plan. 6.8 Procedure When Distributee Cannot Be Located The Administrator shall make all reasonable attempts to determine the identity and address of a Participant or a Participant's Beneficiary entitled to benefits under the Plan. For this purpose, a reasonable attempt means (a) the mailing by certified mail of a notice to the last known address shown in the Administrator's records; (b) use of a commercial locator service, the internet or other general search method; or (c) use such other methods as the Administrator believes prudent. If the Participant or Beneficiary has not responded within 6 months, the Plan shall continue to hold the benefits due such person until, in the Administrator’s discretion, the Plan is required to take other action under applicable law. Notwithstanding the foregoing, if the Administrator is unable to locate a person entitled to benefits hereunder after applying the search methods set forth above, then the Administrator, in its sole discretion, may pay an amount that is immediately distributable to such person in a direct rollover to an individual retirement plan designated by the Administrator. 6.9 Direct Rollover (a) A Participant or spouse Beneficiary (or a Participant's spouse or former spouse who is the alternate payee under a domestic relations order, as defined in Code Section 414(p)) who is entitled to an "eligible rollover distribution" may elect, at the time and in the manner prescribed by the Administrator, to have all or any portion of the distribution paid directly 25 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 to an "eligible retirement plan" specified by the Participant or spouse Beneficiary in a direct rollover. (b) For purposes of this Section 6.9, an "eligible rollover distribution" means any distribution of all or any portion of a Participant's Account Balance, except that an eligible rollover distribution does not include (i) any distribution that is one of a series of substantially equal periodic payment made not less frequently than annually for the life or life expectancy of the Participant or the joint lives or life expectancies of the Participant and the Participant’s designated beneficiary, or for a specified period of ten years or more (ii) any distribution made as a result of an unforeseeable emergency, or (iii) any distribution that is a required minimum distribution under Code Section 401(a)(9). In addition, an "eligible retirement plan" with respect to the Participant, the participant’s spouse, or the Participant’s spouse or former spouse who is an alternate payee under a domestic relations order as defined in Code Section 414(p) means any of the following: (i) an individual retirement account described in Code Section 408(a), (ii) an individual retirement annuity described in Code Section 408(b), (iii) an annuity plan described in Code Section 403(a), (iv) a qualified defined contribution plan described in Code Section 401(a), (v) an annuity contract described in Code Section 403(b), (vi) an eligible deferred compensation plan described in Code Section 457(b) that is maintained by a State, political subdivision of a State, or any agency or instrumentality of a State or political subdivision of a State, or (vii) effective for distributions made on or after January 1, 2008, a Roth IRA, as described in Code Section 408A, provided, that for distributions made before January 1, 2010, such rollover shall be subject to the limitations contained in Code Section 408A(c)(3)(B) . Notwithstanding any other provision of this Section 6.9(b), a plan or contract described in clause (iii), (iv), (v), or (vi) above shall not constitute an "eligible retirement plan" with respect to a distribution of Roth Contributions unless such plan or contract separately accounts for such distribution, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. (c) A Beneficiary who is not the spouse of the deceased Participant may elect a direct rollover of a distribution to an individual retirement account described in Code Section 408(b) or to a Roth individual retirement account described in Code Section 408A(b) ("IRA"), provided that the distributed amount satisfies all the requirements to be an eligible rollover distribution. The direct rollover must be made to an IRA established on behalf of the designated nonspouse Beneficiary that will be treated as an inherited IRA pursuant to the provisions of Code Section 402(c)(11). The IRA must be established in a manner that identifies it as an IRA with respect to a deceased Participant and also identifies the deceased Participant and the nonspouse Beneficiary. 6.10 Inservice Distributions (a) Unforeseeable Emergency Distributions. If the Participant who has not incurred a Severance from Employment or Beneficiary has an unforeseeable emergency, the 26 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 Administrator may approve a single sum distribution of the amount requested or, if less, the maximum amount determined by the Administrator to be permitted to be distributed under this Section 6.10(a), Treasury Regulation Section 1.457-6(c) or other regulatory guidance. The Administrator shall determine whether an unforeseeable emergency exists based on relevant facts and circumstances, and Treasury Regulation Section 1.457-6(c) or other regulatory guidance. (i) An unforeseeable emergency is defined as a severe financial hardship resulting from the following: (A) an illness or accident of the Participant or Beneficiary, the Participant's or Beneficiary’s spouse, or the Participant’s or Beneficiary’s dependent or the Participant’s "primary Beneficiary"; (B) loss of the Participant's or Beneficiary’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner's insurance, e.g., as a result of a natural disaster); (C) the need to pay for the funeral expenses of a Participant’s or Beneficiary’s spouse, Participant’s or Beneficiary’s dependent or "primary Beneficiary" of the Participant; (D) the need to pay for medical expenses of the Participant or Beneficiary, the Participant's or Beneficiary’s spouse, Participant's or Beneficiary’s dependent or the Participant's "primary Beneficiary" which are not reimbursed or compensated by insurance or otherwise, including non-refundable deductibles, as well as for the cost of prescription drug medication; (E) the imminent foreclosure of or eviction from the Participant's or Beneficiary’s primary residence; or (F) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant or Beneficiary. However, except as otherwise specifically provided in this Section 6.10(a), certain circumstances are not considered an unforeseen emergency such as the purchase of a home or the payment of college tuition or credit card debt. For purposes of this paragraph, if the Participant is not deceased, a "primary Beneficiary" shall be limited to a primary Beneficiary under the Plan, which is an individual who is named as a Beneficiary pursuant to Section 8.1 and has an unconditional right to all or a portion of the Participant's Account Balance upon the death of the Participant, and which shall not include a contingent beneficiary. Additionally, dependent shall be limited to the definition under Code Section 152(a), and, for taxable years beginning on or after January 1, 2005, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B). 27 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 (ii) Unforeseeable emergency distribution standard. A distribution on account of unforeseeable emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise; by liquidation of the Participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship; or by cessation of deferrals under the Plan if the cessation of deferrals would alleviate the financial need. (iii) Distribution necessary to satisfy emergency need. Distributions because of an unforeseeable emergency may not exceed the amount reasonably necessary to satisfy the emergency need (which may include any amounts necessary to pay any federal, State, or local income taxes or penalties reasonably anticipated to result from the distribution). (b) De minimis Account Balance Distributions. A Participant before Severance of Employment may request a distribution of his or her total Account Balance (excluding the rollover contribution separate account), which shall be paid in a lump sum payment as soon as practical following the direction if (i) the total Account Balance does not exceed $5,000 (or the dollar limit under Code Section 411(a)(11), if greater), (ii) the Participant has not previously received a distribution of their total Account Balance payable to the Participant under this Section 6.10(b), and (iii) no Annual Deferral has been made with respect to the Participant during the two-year period ending immediately before the date of the distribution. The Administrator may direct payments under the terms of this Section 6.10(b) if the Participant's total Account Balance (excluding the rollover contribution separate account) is $1,000 or less, then the Administrator may pay the distribution in a lump sum payment. (c) Rollover Account Distributions. If a Participant has a separate account attributable to rollover contributions under the Plan, the Participant before Severance of Employment may at any time elect to receive an inservice distribution of all or any portion of the amount held in the rollover separate account. (d) Age 70 ½ Distributions. Prior to Severance from Employment, a Participant may withdraw all or a portion of his or her Account Balance on or after first day of the calendar year in which the Participant shall attain age 70½. (e) Qualified Military Service Deemed Severance Distributions. The Plan does not permit "qualified military service deemed severance withdrawals". (f) Qualified Military Reservist Distributions. The Plan does not permit "qualified military reservist withdrawals". 28 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 6.11 Qualified Distributions for Retired Public Safety Officers The Plan does not permit qualified distributions for retired public safety officers. 29 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 SECTION VII ROLLOVERS AND PLAN TRANSFERS 7.1 Eligible Rollover Contributions to the Plan (a) A Participant who is an Employee or a Participant who has separated from service and has an Account Balance and who is entitled to receive an eligible rollover distribution from another "eligible retirement plan", as defined in 6.9(b) excluding the direct rollover of after-tax contributions, may request to have all or a portion of the eligible rollover distribution paid to the Plan. The Administrator may require such documentation from the distributing plan as it deems necessary to effectuate the rollover in accordance with Code Section 402 and to confirm that such plan is an "eligible retirement plan" within the meaning of Code Section 402(c)(8)(B). (b) If an Employee makes a rollover contribution to the Plan of amounts that have previously been distributed to him or her, the Employee must deliver to the Administrator the cash that constitutes his or her rollover contribution within 60 days of receipt of the distribution from the distributing "eligible retirement plan". Such delivery must be made in the manner prescribed by the Administrator. (c) The Plan shall establish and maintain for the Participant a separate account for any eligible rollover distribution paid to the Plan from any "eligible retirement plan" that is an eligible governmental plan under Code Section 457(b). In addition, the Plan shall establish and maintain for the Participant a separate account for any eligible rollover distribution paid to the Plan from any "eligible retirement plan" that is not an eligible governmental plan under Code Section 457(b). 7.2 Plan-to-Plan Transfers to the Plan At the direction of the Employer, the Administrator may permit Participants or Beneficiaries who are participants or beneficiaries in another eligible governmental plan under Code Section 457(b) 30 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 to transfer assets to the Plan as provided in this Section 7.2. Such a transfer is permitted only if the other plan provides for the direct transfer of each Participant's or Beneficiary’s interest therein to the Plan. The Administrator may require in its sole discretion that the transfer be in cash or other property acceptable to the Administrator. The Administrator may require such documentation from the other plan as it deems necessary to effectuate the transfer in accordance with Code Section 457(e)(10) and Treasury Regulation Section 1.457-10(b) and to confirm that the other plan is an eligible governmental plan as defined in Treasury Regulation Section 1.457-2(f). The amount so transferred shall be credited to the Participant's Account Balance and shall be held, accounted for, administered and otherwise treated in the same manner as an Annual Deferral by the Participant under the Plan, except that the transferred amount shall not be considered an Annual Deferral under the Plan in determining the maximum deferral under Section III. 7.3 Plan-to-Plan Transfers from the Plan (a) At the direction of the Employer, the Administrator may permit Participants or Beneficiaries to elect to have his or her Account Balance transferred to another eligible governmental plan within the meaning of Treasury Regulatory Section 1.457-2(f), if the other eligible governmental plan provides for the receipt of transfers, the Participant or Beneficiary whose amounts deferred are being transferred will have an amount deferred immediately after the transfer at least equal to the amount deferred with respect to that Participant or Beneficiary immediately before the transfer, and the conditions of subparagraph (i), (ii), or (iii) are met. (i) A transfer from the Plan to another eligible governmental plan is permitted in the case of a transfer for a Participant if the Participant has had a Severance from Employment with the Employer and is performing services for the entity maintaining the other eligible governmental plan. (ii) A transfer from the Plan to another eligible governmental plan is permitted if: (A) The transfer is to another eligible governmental plan within the same State as the Plan; (B) All the assets held by the Plan are transferred; and (C) A Participant or Beneficiary whose amounts deferred are being transferred is not eligible for additional annual deferrals in the other eligible governmental plan unless he or she is performing services for the entity maintaining the other eligible governmental plan. (iii) A transfer from the Plan to another eligible governmental plan of the Employer is permitted if: (A) The transfer is to another eligible governmental plan of the Employer (and, for this purpose, an employer is not treated as the Employer if the Participant's compensation is paid by a different entity); and 31 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 (B) A Participant or Beneficiary whose deferred amounts are being transferred is not eligible for additional annual deferrals in the other eligible governmental plan unless he or she is performing services for the entity maintaining the other eligible governmental plan. (b) Upon the transfer of assets under this Section 7.3, the Plan's liability to pay benefits to the Participant or Beneficiary under this Plan shall be discharged to the extent of the amount so transferred for the Participant or Beneficiary. The Administrator may require such documentation from the receiving plan as it deems appropriate or necessary to comply with this Section (for example, to confirm that the receiving plan is an eligible governmental plan under paragraph (a) of this Section 7.3, and to assure that the transfer is permitted under the receiving plan) or to effectuate the transfer pursuant to Treasury Regulation Section 1.457-10(b). 7.4 Permissive Service Credit Transfers (a) If a Participant is also a participant in a tax-qualified defined benefit governmental plan (as defined in Code Section 414(d)) that provides for the acceptance of plan-to-plan transfers with respect to the Participant, then the Participant may elect to have any portion of the Participant's Account Balance transferred to the defined benefit governmental plan. A transfer under this Section 7.4(a) may be made before the Participant has had a Severance from Employment and without regard to whether the defined benefit governmental plan is maintained by the Employer. The distribution rules applicable to the defined benefit governmental plan to which any amounts are transferred under this Section 7.4 shall apply to the transferred amounts and any benefits attributable to the transferred amounts. (b) A transfer may be made under Section 7.4(a) only if the transfer is either for the purchase of permissive service credit (as defined in Code Section 415(n)(3)(A)) under the receiving defined benefit governmental plan, including service credit for periods for which there is no performance of services, service credited in order to provide an increased benefit for service credit which a participant is receiving under the plan, and service (including parental, medical, sabbatical, and similar leave) as an employee (other than as an employee described in Code Section 415(n)(3)(C)(i)) of an educational organization described in Code Section 170(b)(1)(A)(ii) which is a public, private, or sectarian school which provides elementary or secondary education (through grade 12) or a comparable level of education, as determined under the applicable law of the jurisdiction in which the service was performed, without application of the limitations of Code Section 415(n)(3)(B) in determining whether the transfer is for the purchase of permissive service credit, or a repayment to which Code Section 415 does not apply by reason of Code Section 415(k)(3). 32 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 SECTION VIII BENEFICIARY 8.1 Beneficiary Designation A Participant has the right, by written notice filed with the Administrator, to designate one or more beneficiaries to receive any benefits payable under the Plan in the event of the Participant’s death prior to the complete distribution of benefits. The Participant accepts and acknowledges that he or she has the burden for executing and filing, with the Administrator, a proper beneficiary designation form. The form for this purpose shall be provided by the Administrator. The form is not valid until it is signed, filed with the Administrator by the Participant, and accepted by the Administrator. Upon the Participant filing the form and acceptance by the Administrator, the form revokes all beneficiary designations filed prior to that date by the Participant. If no such designation is in effect upon the Participant’s death, or if no designated Beneficiary survives the Participant, the Beneficiary shall be the Participant’s estate. If a Beneficiary dies after becoming entitled to receive a distribution under the Plan but before distribution is made to him or her in full the estate of the deceased Beneficiary shall be the Beneficiary as to the balance of the distribution. 33 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 SECTION IX ADMINISTRATION AND ACCOUNTING 9.1 Administrator The Administrator shall have the responsibility and authority to control the operation and administration of the Plan in accordance with the terms of the Plan, the Code and regulations thereunder, and any State law as applicable. The Administrator may contract with a financially responsible independent contractor to administer and coordinate the Plan under the direction of the Administrator. The Administrator shall have the right to designate a plan coordinator or other party of its choice to perform such services under this agreement as may be mutually agreed to between the Administrator and the plan coordinator or other party. Notwithstanding any other provisions to the contrary, the Administrator agrees that it shall be solely responsible to the Employer for any and all services performed by a plan coordinator, subcontractor, assignee, or designee under this agreement. The Administrator has full and complete discretionary authority to determine all questions of Plan interpretation, policy, participation, or benefit eligibility in a manner consistent with the Plan’s documents, such determinations shall be conclusive and binding on all persons except as otherwise provided by law. 9.2 Administrative Costs All reasonable expenses of administration may be paid out of the Plan assets unless paid (or reimbursed) by the Employer. Such expenses shall include any expenses incident to the functioning of the Administrator, or any person or persons retained or appointed by any named fiduciary incident to the exercise of his or her duties under the Plan, including, but not limited to, fees of accountants, counsel, investment managers, agents (including nonfiduciary agents) appointed for the purpose of assisting the Administrator in carrying out the instructions of Participants as to the directed investment of his or her accounts and other specialists and his or her agents, and other costs of administering the Plan. In addition, unless specifically prohibited under statute, regulation or other guidance of general applicability, the Administrator may charge to the Account Balance of an individual a reasonable charge to offset the cost of making a distribution to the Participant, Beneficiary, or Alternate Payee or to the Participant for Plan loans. If liquid assets of the Plan are insufficient to cover the fees of the Administrator, then Plan assets shall be liquidated to the extent necessary for such fees. In the event any part of the Plan assets becomes subject to tax, all taxes incurred will be paid from the Plan assets. Until paid, the expenses shall constitute a liability of the Trust Fund described in Section 11.1. 9.3 Paperless Administration The Administrator may use telephonic or electronic media to satisfy any notice requirements required by this Plan, to the extent permissible under regulations (or other generally applicable guidance). In addition, a Participant's consent to immediate distribution may be provided through telephonic or electronic means, to the extent permissible under regulations (or other generally 34 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 applicable guidance). The Administrator also may use telephonic or electronic media to conduct plan transactions such as enrolling participants, making (and changing) salary reduction elections, electing (and changing) investment allocations, applying for Participant Plan loans, and other transactions, to the extent permissible under regulations (or other generally applicable guidance). 35 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 SECTION X AMENDMENTS 10.1 Amendment The Employer may at any time either prospectively or retroactively amend the Plan by notifying Participants of such action. The Employer shall not have the right to reduce or affect the value of any Participant’s Account Balance or any rights accrued under the Plan prior to amendment. 10.2 Conformation The Employer shall amend and interpret the Plan to the extent necessary to conform to the requirements of Code Section 457 and any other applicable law, regulation or ruling, including amendments that are retroactive. In the event the Plan is deemed by the Internal Revenue Code to be administered in a manner inconsistent with Code Section 457, the Employer shall correct such inconsistency within the period provided in Code Section 457(b). 10.3 Plan Termination In the event of the termination of the Plan, all Account Balances shall be disposed to or for the benefit of each Participant or Beneficiary in accordance with the provisions of Section VI or Section VII as soon as reasonably practicable following the Plan’s termination. The Employer shall not have the right to reduce or affect the value of any Participant’s account or any rights accrued under the Plan prior to termination of the Plan. The Participant’s or Beneficiary’s written consent to the commencement of distribution shall not be required regardless of the value of his or her Account Balance. 36 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 SECTION XI TRUST FUND 11.1 Trust Fund All amounts in a Participant’s or Beneficiary’s Account Balance, all property and rights purchased with such amounts, and all income attributable to such amounts, property, or rights shall be held and invested in the Trust Fund in accordance with this Plan. The Trust Fund, and any subtrust established under the Plan, shall be established pursuant to a written agreement that constitutes a valid trust, custodial agreement, annuity contract, or similar agreement under the laws of the State. All investments, amounts, property, and rights held under the Trust Fund shall be held in trust for the exclusive benefit of Participants and their Beneficiaries and defraying reasonable expenses of the Plan and of the Trust Fund. Prior to the satisfaction of all liabilities with respect to Participants and their Beneficiaries, no part of the assets and income of the Trust Fund may be used for, or diverted to, for purposes other than for the exclusive benefit of Participants and their Beneficiaries. The Employer has no beneficial interest in the Trust Fund and no part of the Trust Fund shall ever revert to the Employer, directly or indirectly, provided, however, that a contribution or any portion thereof made by the Employer through a mistake of fact under Section 12.4 shall upon written request of the Employer, reduced by losses attributable thereto, shall be returned to the Employer. 37 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 SECTION XII MISCELLANEOUS 12.1 Non-Assignability Except as provided in Sections 12.2 and 12.3, no benefit under the Plan at any time shall be subject in any manner to anticipation, alienation, assignment (either at law or in equity), encumbrance, garnishment, levy, execution, or other legal or equitable process; and no person shall have power in any manner to anticipate, transfer, assign (either law or in equity), alienate or subject to attachment, garnishment, levy, execution, or other legal or equitable process, or in any way encumber his or her benefits under the Plan, or any part thereof, and any attempt to do so shall be void except to such extent as may be required by law. 12.2 Domestic Relation Orders The Employer shall establish reasonable procedures to determine the status of domestic relations orders and to administer distributions under domestic relations orders which are deemed to be qualified orders. Such procedures shall be in writing and shall comply with the provisions of Code Section 414(p) and regulations issued thereunder. Notwithstanding Section 12.1, the Administrator may affect a Participant's Account Balance for a "qualified domestic relations order" as defined in Code Section 414(p), and those other domestic relations orders permitted to be so treated by the Administrator under the provisions of the Retirement Equity Act of 1984. The amount of the Participant's Account Balance shall be paid in the manner and to the person or persons so directed in the qualified domestic relations order. Such payment shall be made without regard to whether the Participant is eligible for a distribution of benefits under the Plan. 12.3 IRS Levy Notwithstanding Section 12.1, the Administrator may pay from a Participant's or Beneficiary's Account Balance the amount that the Administrator finds is lawfully demanded under a levy issued by the Internal Revenue Service to the Plan with respect to that Participant or Beneficiary or is sought to be collected by the United States Government under a judgment resulting from an unpaid tax assessment against the Participant or Beneficiary. 12.4 Mistaken Contributions Notwithstanding any other provision of the Plan or the Trust Fund to the contrary, in the event any contribution of an Employer is made under a mistake of fact (and not a Plan operational error), such contribution may be returned to the Employer within one year after the payment of the contribution. Earnings attributable to the excess contribution may not be returned to the Employer, but losses attributable thereto must reduce the amount to be so returned. 38 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 12.5 Employment Neither the establishment of the Plan nor any modification thereof, nor the establishment of any account, nor the payment of any benefits, shall be construed as giving to any Participant or other person any legal or equitable right against the Employer except as herein provided; and, in no event, shall the terms or employment of any Employee be modified or in any way affected hereby. 12.6 Successors and Assigns The Plan shall be binding upon and shall inure to the benefit of the Employer, its successors and assigns, all Participants and Beneficiaries and their heirs and legal representatives. 12.7 Written Notice Any notice or other communication required or permitted under the Plan shall be in writing, and if directed to the Administrator shall be sent to the designated office of the Administrator, and, if directed to a Participant or to a Beneficiary, shall be sent to such Participant or Beneficiary at his or her last known address as it appears on the Administrator’s record. To the extent permitted by law, regulation or other guidance from an appropriate regulatory agency, the Administrator, Employer or any other party may provide any notice or disclosure, obtain any authorization or consent, or satisfy any other obligation under the Plan through the use of any other medium acceptable to the Administrator. Such other medium may include, but is not necessarily limited to, electronic or telephonic medium. In addition, any communication or disclosure to or from Participants or Beneficiaries that is required under the terms of the Plan to be made in writing may be provided in any other medium (electronic, telephonic, or otherwise) that is acceptable to the Administrator and permitted under applicable law. 12.8 Total Agreement This Plan and Participant deferral election, and any subsequently adopted Plan amendment thereof, shall constitute the total agreement or contract between the Employer and the Participant regarding the Plan. No oral statement regarding the Plan may be relied upon by the Participant. 12.9 Gender As used herein the masculine shall include the neuter and the feminine where appropriate. 12.10 Controlling Law This Plan is created and shall be construed, administered and interpreted in accordance with Code Section 457 and the regulations thereunder, and under laws of the State as the same shall be at the time any dispute or issue is raised. If any portion of this Plan is held illegal, invalid or unenforceable, the legality, validity and enforceability of the remainder shall be unaffected. 39 GN - 020007 GPLANLVL – CORRSPND Specimen 457(b) Plan Document Deferred Compensation Plan Ver 102011 EMPLOYER ADOPTION PAGE IN WITNESS WHEREOF, the Employer has executed this Plan document this day of , . City of Palo Alto SEAL By Name Title Attest: Title (Witness) TO: HONORABLE CITY COUNCIL FROM: RUMI PORTILLO, CHIEF PEOPLE OFFICER DATE: APRIL 15, 2019 SUBJECT: AGENDA ITEM NUMBER 5: Adoption of a Resolution Amending the City of Palo Alto's Deferred Compensation Plan for Regular Employees, and Incorporating an Employer Contribution Provision and Loan Provision by Adoption of the Amended Deferred Compensation Plan and Trust Document. Attached is an updated version of “Attachment A: Resolution”. It has been updated to only include the Employer Matching Provision and Employee Loan Provision; excluding the 457 Roth Provision. ______________________________ Rumi Portillo Chief People Officer Human Resources Director DocuSign Envelope ID: 44C3B7C5-E701-4502-BE47-FE0682F28E0BDocuSign Envelope ID: 2B266DBD-2B5D-4947-B3B5-37655F27037F 5 Resolution No.__________ RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING AND RESTATING THE CITY OF PALO ALTO’S DEFERRED COMPENSATION PLAN FOR REGULAR EMPLOYEES, AND INCORPORATING EMPLOYER CONTRIBUTIONS,ANDLOAN PROVISION AND 457 ROTH PROVISION, AS AMENDED WHEREAS,the Council has previously approved and adopted the City of Palo Alto Deferred Compensation Plan (“Plan”) to provide employees of the City of Palo Alto with retirement benefits. WHEREAS,the Council does hereby declare the intention of the City of Palo Alto to continue the Plan, but reserves the right to terminate or amend the Plan at any time. WHEREAS,the members of the Council are hereby jointly and severally authorized to take such actions and to execute such documents as they deem necessary or desirable in order to carryout the intent of the foregoing resolutions and required under thePlantomakethe Plan fully effective in accordance with its terms andintent. NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Palo Alto hereby approves the amended and restated City Of Palo Alto Deferred Compensation Plan for Regular Employees. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: ________________________________ ________________________________ City Clerk Mayor ________________________________ ________________________________ City Attorney City Manager DocuSign Envelope ID: 44C3B7C5-E701-4502-BE47-FE0682F28E0BDocuSign Envelope ID: 2B266DBD-2B5D-4947-B3B5-37655F27037F Resolution No.__________ RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING AND RESTATING THE CITY OF PALO ALTO’S DEFERRED COMPENSATION PLAN FOR REGULAR EMPLOYEES, AND INCORPORATING EMPLOYER CONTRIBUTIONS AND LOAN PROVISION, AS AMENDED WHEREAS, the Council has previously approved and adopted the City of Palo Alto Deferred Compensation Plan (“Plan”) to provide employees of the City of Palo Alto with retirement benefits. WHEREAS, the Council does hereby declare the intention of the City of Palo Alto to continue the Plan, but reserves the right to terminate or amend the Plan at any time. WHEREAS, the members of the Council are hereby jointly and severally authorized to take such actions and to execute such documents as they deem necessary or desirable in order to carry out the intent of the foregoing resolutions and required under the Plan to make the Plan fully effective in accordance with its terms and intent. NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Palo Alto hereby approves the amended and restated City Of Palo Alto Deferred Compensation Plan for Regular Employees. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: ________________________________ ________________________________ City Clerk Mayor ________________________________ ________________________________ City Attorney City Manager DocuSign Envelope ID: 44C3B7C5-E701-4502-BE47-FE0682F28E0BDocuSign Envelope ID: 2B266DBD-2B5D-4947-B3B5-37655F27037F City of Palo Alto (ID # 10073) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/22/2019 City of Palo Alto Page 1 Council Priority: Transportation and Traffic Summary Title: Contract Amendment 3 for BKF Engineers to Increase Compensation by $44,885.50 Title: Approval of Amendment Number 3 to Contract Number C16158064 With BKF Engineers to Extend the Term to June 30, 2019 and Increase Compensation by $44,885 for a Maximum Not-to-Exceed Amount of $583,432 for Additional Design Services Related to the Embarcadero Road at El Camino Real Intersection Improvements Project (PL-15001) From: City Manager Lead Department: Transportation Recommendation: Staff recommends that Council approve and authorize the City Manager or his designee to execute Amendment Number 3 to Contract C16158064 with BKF Engineers (Attachment A) to extend the term to June 30, 2019 and authorize an additional $44,885.50 in compensation for additional design services already performed for the Embarcadero Road at El Camino Improvements project (PL-15001). Background: The Embarcadero Road corridor provides a direct east-west connection between US 101 and Stanford University for visitors to the city and supports local travel with connections to Town & Country shopping center, Palo Alto High School, Palo Alto Medical Foundation, and El Camino Real (SR 82). The segment of Embarcadero Road between High Street and El Camino Real has been an area of community concern for many years—with three closely spaced traffic signals within 750 feet of one another—at El Camino Real, the Town & Country Shopping Center and Palo Alto High School driveways, and the pedestrian crossing at Trader Joe’s. City of Palo Alto Page 2 On October 5, 2015 (ID# 6093), the City Council authorized a contract with BKF Engineers for the second phase of the Embarcadero Road at El Camino Improvements Project, which includes preparation of concept plan lines, final design plans, environmental documentation, construction documents and required permitting from Caltrans, for intersection improvements at El Camino Real and Embarcadero Road/Galvez Street. Improvements scoped include, but are not limited to, traffic signal modifications, sidewalk realignment, high-visibility crosswalks, signing and striping, bicycle treatments, landscaping and traffic calming elements. On September 19, 2016 (ID# 6952), the City Council directed staff to move forward with the alternative which included one-way Class IV separated bikeways along Embarcadero Road between El Camino Real and Emerson Street as well as a protected Dutch-style intersection at El Camino Real and Embarcadero Road/Galvez Street. The design also included pedestrian improvements at the intersections of El Camino Real, High Street, Kingsley Avenue and Emerson Street. On May 1, 2017 (ID#7947) Council approved Amendment Number 2 on to extend the time on the Contract with BKF Engineers from March 27, 2018 to September 27, 2018. Due to Council discussions about Connecting Palo Alto rail grade separations and potential changes affecting Alma Street, Embarcadero Road, and vicinity, the Embarcadero Road at El Camino Improvements project is currently on hold. Discussion The proposed contract amendment provides funding for additional services that BKF Engineers performed that was added to the project scope after consultation with Caltrans. The project is currently on hold as the City evaluates traffic changes related to grade separation alternatives. The proposed contract amendment will allow the City to compensate BKF Engineers for the work they already done at City’s request prior to progression of the Connecting Palo Alto project. Following City Council direction in September 2016, BKF Engineers completed 100% construction plans and specifications. Design plans have been reviewed and approved by City departments, Stanford University, Town & Country, Palo Alto Unified School District and Caltrans. Some of the improvements included in the 100 percent design plans include: • Separated bikeways along Embarcadero Road between El Camino Real and Emerson Street as well as a protected Dutch-style intersection at El Camino Real and Embarcadero Road/Galvez Street. City of Palo Alto Page 3 • Raised crosswalk in the channelized right-turn lane from El Camino Real northbound to Embarcadero Road eastbound: slows motor vehicles and increases visibility of bicyclists and pedestrians. • Modified driveway apron at Trader Joe’s driveway: more standard exit-only driveway design prevents drivers from merging onto oncoming traffic and increases the visibility of bicyclists and pedestrians. • Addition of stairs on the Town & Country shopping center side of Embarcadero Road: allows for easier pedestrian access to and from path along railroad overcrossing. • New pedestrian scale lighting to enhance safety along the Embarcadero Rd corridor. • Enhanced signage and markings for bicycles at the underpass: more clearly identifying the shared space between bicyclist and pedestrians, better utilizes the constrained pathway opening through the underpass. • Improved curb radius for right turns from eastbound Embarcadero Road into the Palo Alto High School driveway: reduces the amount of motor vehicles driving over curbs and damaging roadway elements. • Improved shuttle stops: on both sides of the street, additional space is allocated for the shuttle stops to avoid impinging on pedestrian and bicyclists’ space. • Modified Kingsley Avenue approach to Embarcadero Road eastbound: creates a more standard 90-degree intersection with Embarcadero Road to reduce driver confusion and limit the number conflicts with bicyclists, pedestrians and other motor vehicles. • Revised High Street and Emerson Street intersections: reduces conflicts, reduces speed of turning vehicles and increases visibility for pedestrians and bicyclists. Because El Camino Real (Route 82) is a state highway, Caltrans is the lead agency and design plans needed to be submitted for their review and approval in order obtain an encroachment permit needed for construction. As part of their review, Caltrans requested that additional studies and design changes be made at the intersection of El Camino, these changes resulted in additional effort and studies by the design consultant which exceeded the scope of the original design contact by $44,885.50. Policy Implications The Bicycle + Pedestrian Transportation Plan identifies and prioritizes the development of bicycle and pedestrian improvements. The plan objectives that are advanced by the accommodation of bicyclists along this corridor include: • Objective 1: Double the rate of bicycling for both local and total work commutes by 2020 (to 15% and 5%, respectively). • Objective 2: Convert discretionary vehicle trips into walking and bicycling trips in order to reduce City transportation-related greenhouse gas (GHG) emissions 15% by 2020. • Objective 3: Develop a core network of shared paths, bikeways, and traffic-calmed City of Palo Alto Page 4 streets that connects business and residential districts, schools, parks, and open spaces to promote healthy, active living. • Objective 4: Plan, construct, and maintain ‘Complete Streets’ that are safe and accessible to all modes and people of all ages and abilities. • Objective 5: Promote efficient, sustainable, and creative use of limited public resources through integrated design and planning. In addition, the Comprehensive Plan goals, policies, and programs that support the accommodation of bicyclists on Embarcadero include: Goal T-3: Facilities, Services, and Programs the Encourage and Promote Walking and Bicycling. Prog. T-19: Develop, periodically update, and implement a bicycle facilities improvement program and a pedestrian facilities improvement program that identify and prioritize critical pedestrian and bicycle links to parks, schools, retail centers, and civic facilities. Policy T-14: Improve pedestrian and bicycle access to and between local destination, including public facilities, schools, parks, open space, employments district, shopping centers, and mulit modal transit stations. Policy T-25: When constructing or modifying roadways, plan for usage of the roadway space by all users, including motor vehicles, transit vehicles, bicyclists, and pedestrians. Policy T-29: Make effective use of the traffic-carrying ability of Palo Alto’s major street network without compromising the need of pedestrians and bicyclists also using this network. Resource Impact Funding in the amount of $44,885.50 for an amendment to increase the design contract is available in the Embarcadero Road at El Camino Improvements Project (PL-15001). This amendment will increase the total design contract with BKF Engineers to $583,432.50. Timeline Due to the recent staffing shortages in the Office of Transportation as well as the Council discussion around grade separation alternatives, the construction of the project is currently on hold. City of Palo Alto Page 5 Staff will return to Council for further direction on implementation of the Bicycle +_Pedestrian Transportation Plan once staffing for the Office of Transportation has been stabilized. Subject to Council direction and confirmation of the prior scope, staff anticipates that a construction contract award will include an additional amendment to the BKF Engineers contract for design support during construction. Environmental Review The contract amendment does not require an environmental review; however, given the nature of the proposed improvements for the project, the project qualifies for a Class 1 Categorical Exemption under California Environmental Quality Act (CEQA) Guidelines Section 15301. The Class 1 exemption covers minor alterations to existing facilities so long as they involve no or negligible expansion of use. Attachments: Attachment A: BKF C16158064 Amendment 3 (PDF) 1 Revision July 20, 2016 AMENDMENT NO. 3 TO CONTRACT NO. C16158064 BETWEEN THE CITY OF PALO ALTO AND BKF ENGINEERS This Amendment No. 3 to Contract No. C16158064 (“Contract”) is entered into April 1, 2019, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and BKF ENGINEERS, a California corporation, located at 255 Shoreline Drive, Suite 200, Redwood City, California, 94065, Telephone (650) 482-6300 ("CONSULTANT"). R E C I T A L S A. The Contract was entered into between the parties for the provision of planning, study and analysis in connection with the widening of the Embarcadero Road corridor. B. City intends to retroactively extend the term by nine months from September 27, 2018 to June 30, 2019. C. City intends to increase the compensation by $44,885.50 from $538,547.00 to $583,432.50 for new services as specified in Exhibit “A” Scope of Services. D. The parties wish to amend the Contract. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 2. TERM of the Contract is hereby amended to read as follows: “SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2019 unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 2. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended to read as follows: “SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed Five Hundred Twenty-Eight Thousand Seven Hundred Fifteen Dollars and Sixty Cents ($528,715.60). In the event Additional Services are authorized, the total compensation for Services, Additional Services and reimbursable expenses shall not exceed Five Hundred Eighty Three Thousand Four Hundred Thirty Two Dollars Fifty Cents ($583,432.50). The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “RATE SCHEDULE,” which is attached to and made a part of this Agreement. 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 DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 2 Revision July 20, 2016 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 to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this refer- ence: a. Exhibit “A” entitled “SCOPE OF SERVICES”. b. Exhibit “C” entitled “COMPENSATION”. c. Exhibit “C-1” entitled “HOURLY RATE SCHEDULE”. SECTION 4. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: BKF ENGINEERS Attachments: EXHIBIT "A": SCOPE OF SERVICES EXHIBIT "C": COMPENSATION EXHIBIT "C-1": HOURLY RATE SCHEDULE DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 Brian Scott Principal/Vice President 3 Revision July 20, 2016 EXHIBIT “A” SCOPE OF SERVICES CONSULTANT shall perform the following tasks: Task 1 – Concept Plan Lines & Permit Engineering Evaluation Report (PEER)/ Encroachment Permit: The Concept Plan Lines & Permit Engineering Evaluation Report (PEER)/ Encroachment Permit stage includes the identification of various alignment alternatives for the Embarcadero Road Corridor Improvement Project for the consideration of the Palo Alto community. The community preferred alignment alternative will then move forward with the PEER/Encroachment Permit process with Caltrans. Up to three alignment alternatives are anticipated for consideration by the community before identification of a community preferred alignment alternative that will be advanced and submitted with an Encroachment Permit and/or PEER to Caltrans. The CONSULTANT will coordinate for review/approval of all documents submitted for Caltrans approval. At the start of the project, the CONSULTANT will prepare for and attend a single project kick-off meeting with design team and City staff. The kick-off meeting will review scope, schedule and milestones, communications, project program including review of existing plans, and outreach program and strategies. The CONSULTANT will be responsible for outreach to and organizing meetings with the following agencies: Palo Alto community, Caltrans, Stanford University, Palo Alto Unified School District, and management of the Town and Country Shopping Center (Ellis Partners). The proposed roadway changes will incorporate, or further enhance, the upcoming traffic signal modifications. Additional coordination will also be provided with the Bus Rapid Transit (BRT) project, as well as the City’s various bicycle, pedestrian, and related plans. As part of the identification of alignment alternatives for the Embarcadero Road Corridor Improvement project, the CONSULTANT will take into account the following Design Considerations:  Utilities (Above and Below Ground)  Real property acquisition (temporary construction easements and design)  Safety  Walk-ability, Bicycle ride-ability, and transit connectivity DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 4 Revision July 20, 2016  Adjacent public facilities or facilities of interest, such as Palo Alto High School, Stanford University, Town & Country Shopping Center, and connection with existing and planned bicycle routes and or bay area bicycle share stations  Project mitigations that may result for roadway capacity improvements  Cost As part of the traffic evaluation, the CONSULTANT will prepare the necessary analyses to develop and test improvement alternatives. The CONSULTANT will conduct AM and PM peak-hour traffic counts at the intersections of Embarcadero/El Camino Real, Embarcadero/Paly High Entrance, and Embarcadero/Town & Country Driveway (pedestrian crosswalk). The counts will include bicycles and pedestrians. The counts will be completed when schools are in session. The CONSULTANT also will observe traffic conditions during the peak hours to determine cycle lengths and splits, queue lengths, pedestrian cycles, and other operating conditions not obvious from the traffic counts. Hexagon will use the counts to calculate levels of service for the study intersections under existing conditions and with the proposed improvement schemes. The project budget allows for up to four improvement plan alternatives. Levels of service will be calculated for existing conditions and for 2030 conditions. The 2030 conditions volumes will be obtained from the General Plan forecasts recently completed by Hexagon for the City of Palo Alto. After the development of a community preferred alignment alternative for the Embarcadero Road Corridor Improvement Project, the CONSULTANT will begin coordination with Caltrans and to seek any design exceptions and appropriate permits required for the implementation of the project. Upon successful approval of the PEER/Encroachment Permit with Caltrans, the CONSULTANT will present the project to the Palo Alto Bicycle Advisory Committee (PABAC), Planning & Transportation Commission (PTC), Palo Alto Unified School District (PAUSD) – Board of Directors, Town and Country Shopping Center management, and the City Council for final approval. Deliverables for Task 1 include the following items:  10% Design – Concept Plan Line Alignments  Preliminary cost estimates for alignment alternatives  Identifying of Probable Impact and Mitigation Alternatives for Quality of Life preservation DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 5 Revision July 20, 2016  Final Caltrans Approved PEER The CONSULTANT will undertake the following meeting schedule to successfully develop the project toward an approved preferred alternative:  Three (3) community outreach meetings  Two (2) Palo Alto Bicycle Advisory Committee meetings  Two (2) Palo Alto Unified School District meetings  One (1) Town and Country meeting  City-School Traffic Safety Committee meeting  Up to two (2) PTC meetings  Up to two (2) City Council meetings The City will be responsible for securing community meeting facilities. The CONSULTANT will prepare the outreach materials, including media ads to be coordinated for publication by the City, meeting notice flyers for mailing to residents by the City, and community meeting presentations. Meeting materials may also include existing conditions aerial/project limits diagram, existing conditions photo boards, materials and inspiration image boards to illustrate range of potential improvements, and 8 ½”x11”graphic meeting announcement. Up to three alternative concept plans will be rendered in color for presentation purposes. A single preferred concept plan will be rendered in color for presentation purposes. In addition, the CONSULTANT will prepare up to three photorealistic cross sections illustrating existing conditions and proposed improvements. The CONSULTANT will also serve as Scribe at all community meetings. Task 2 – Bicycle/Pedestrian Connectivity Study: Based on preliminary observations even during non-peak hours, and especially during high demand periods such as a Stanford football game, pedestrian traffic can significantly limit the vehicular capacity of the area. Because of the historic focus on vehicular traffic, pedestrian capacity and accommodations are limited. The City anticipates the need for PS&E of Embarcadero Road between the intersections of El Camino Real/Galvez Street and the Town & Country/Paly Driveway intersection to provide roadway capacity improvements. One key to success of this effort is to better integrate pedestrians and bicyclists. To identify the appropriate long-term bicycle/pedestrian connectivity DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 6 Revision July 20, 2016 improvements along Embarcadero Road east of the Town & Country-Paly driveways intersection, a connectivity study as part of this project is required. Existing bicycle-pedestrian connections along the project study area include a grade-separated multi-use trail over Embarcadero Road adjacent to the Caltrain railroad tracks, a signalized pedestrian-only crossing to Paly adjacent to Trader Joe’s in the Town & Country Shopping Center, and signalized pedestrian facilities at the El Camino Real intersection. The grade-separated multi- use trail is accessed on the west of the Caltrain tracks from Town & Country Shopping Center and a temporary access point at Paly. The temporary Paly access point at Paly is being provided as part of active construction on the school campus. As part of the traffic evaluation, the CONSULTANT will observe pedestrian and bicycle circulation in the area. As part of Task 1 the CONSULTANT will count pedestrian and bicycle volume and make observations during the weekday AM and PM peak periods. For this task the CONSULTANT will count and observe during the peak school times, which could include the lunch time, and before and after a Stanford football game. These observations of peak pedestrian flows will help inform the range of improvement options. During the observations the CONSULTANT will make note of where the pedestrians come from and go to. The CONSULTANT will conduct a qualitative evaluation of the pedestrian and bicycle improvement options. The budget includes up to four options. The CONSULTANT could conduct a quantitative assessment of pedestrian and bicycle operations using transportation simulation software as part of an optional task described below. Through an extensive data-driven community-outreach process the CONSULTANT will identify a recommended long-term connectivity option. The connectivity study will explore the following options:  Existing multi-use trail access improvements  Removal of the existing Embarcadero Road & Paly pedestrian crossing  Addition of a pedestrian/bicycle focused facilities at the Embarcadero Road & Town & Country-Paly driveways intersection  Relocation of Town & Country-Paly driveways  A new grade-separated facility The CONSULTANT will utilize community meetings identified as part of task one to gather feedback regarding bicycle and pedestrian circulation in the area, present multiple alternates, and works to DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 7 Revision July 20, 2016 building consensus for a single preferred plan for the long term connectivity improvements in the area. Based upon input received, the direction for proceeding on a single preferred long-term connectivity plan will be determined. In addition to the overall plan, revised image boards and up to two enlargement plans will be prepared to better illustrate concepts to the public. All plans will be rendered in color for presentation purposes. Task 3 – Environmental Analysis Study: Historic and archaeological resources have been identified as the key environmental issues for this project. These resources are likely to be the primary drivers of the environmental budget and schedule. The CONSULTANT will manage the entire compliance process and ensure that the key environmental issues discussed below are resolved efficiently but with a high level of environmental stewardship befitting the City of Palo Alto. Archaeological and Historic Resources The proposed project will include signal modifications and relocated signals, which require deep excavation (up to 15 feet) for new signal mast arm foundations. Due to this depth of excavation, it is anticipated that Caltrans will require a technical evaluation of the archaeological sensitivity in the project area and the potential for the project to impact buried archaeological resources. PALY is included on the Palo Alto Historic Inventory List and may be eligible for the California Register of Historic Resources and/or the National Register of Historic Places. Both widening options would require right-of-way from PALY and, therefore, they have the potential to cause an impact to an historic resource under NEPA and Section 106 of the National Historic Preservation Act. It is not anticipated that the minor effects to the PALY property would be substantial under CEQA. However, in its capacity as NEPA/Section 106 lead agency, Caltrans will require a technical evaluation of the potential impacts to the PALY campus. Section 4(f) Section 4(f) of the Department of Transportation Act mandates that federally-funded transportation projects avoid the use of recreational, historic, or wildlife refuge resources unless there are no prudent and feasible alternatives. Since both project alternatives are expected to require right-of-way from an historic property (PALY), it will be necessary to complete the Section 4(f) compliance process to document that the City has considered alternatives that do not affect the PALY property. This requirement would not occur if the City decides not to pursue federal funding. DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 8 Revision July 20, 2016 The CONSULTANT will complete the following tasks necessary for the project obtain CEQA and NEPA clearance. This Scope of Work includes the CONSULTANT’s attendance at six community and/or team meetings, not including the Caltrans field review discussed under ‘NEPA Compliance’ below. Environmental Scoping, Purpose & Need, and Project Description The environmental team will complete a field review of the project alignment to further define existing environmental conditions and to establish the principal locations of environmental concern. The CONSULTANT will assist in the accurate definition of the study alternatives, with an emphasis on the inclusion of sufficient detail for finalizing the scopes of the environmental studies. Examples of such details are the width and exact locations of widening, the maximum depth of excavations, and the extent of right-of-way acquisition along the project alignment. As part of the environmental scoping process, the CONSULTANT will develop a Purpose and Need Statement to include in the Project Description. This is a critical step in the environmental process because it will be the basis for the Section 4(f) compliance process. The Purpose and Need Statement will be included in a comprehensive Project Description that will contain accurate definition of the alternatives as well as the necessary environmental details CEQA Compliance Given the nature of the proposed improvements, the project is anticipated to qualify for a Class 1 Categorical Exemption from the California Environmental Quality Act (CEQA). This class of exemptions covers minor alterations to existing facilities so long as they involve no or negligible expansion of use. Although the project design would include additional turning lanes on Embarcadero Road, the overall roadway capacity increase would be negligible. The CONSULTANT will prepare the Notice of Exemption for the City of Palo Alto and file the Notice at the Santa Clara County Clerk-Recorder’s office. If new through lanes are added to the project design or if other potentially significant environmental impacts are encountered, then the project may not qualify for a Categorical Exemption from CEQA. In such a circumstance, the CONSULTANT could prepare an Initial Study/Mitigated Negative Declaration under a separate scope of work. DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 9 Revision July 20, 2016 NEPA Compliance The City of Palo Alto may pursue federal funding for the project and therefore would like to obtain environmental clearance under NEPA. This scope of work assumes that the federal funds and compliance process would be administered by the Caltrans Office of Local Assistance. This task will occur after a final project alternative has been selected (that is, the NEPA process will not evaluate multiple alternatives). This will allow the project to be processed through the Caltrans Office of Local Assistance as a Categorical Exclusion (CE) under NEPA. The CONSULTANT will complete the following tasks as part of the NEPA compliance process. The first step in the NEPA process will be to complete the Caltrans Preliminary Environmental Studies (PES) form, including all required attachments (visual, endangered species, floodplain, hazmat). The next step will be to attend the formal Caltrans field review. Caltrans staff will likely require the following technical memos and studies for this project: • Right-of-Way/Community Impact Memo • Equipment Staging Memo • Air Quality Conformity Documentation • Water Quality Memo • Traffic [Construction and Long-Term] Memo • Visual Impact Memo • Initial Site Assessment • Archaeological Survey Report (ASR) • Historic Resource Evaluation Report (HRER) • Historic Property Survey Report (HPSR) • Finding of Effect • Programmatic Section 4(f) Evaluation (Minor Involvement with Historic Sites) • Biology Memo (trees and nesting birds) These studies are included in this scope and are described more fully in the following paragraphs. This scope assumes that no more than two rounds of revisions based on Caltrans comments will be completed on each memo and report. If additional studies or revisions are required, the CONSULTANT can prepare a supplemental scope and budget for submission to, and approval by, the City of Palo Alto. Right-of-Way/Community Impacts Memo DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 10 Revision July 20, 2016 The CONSULTANT will prepare a brief memo that documents the right-of-way and TCE’s required for this project. The memo will also discuss the impacts of the project on adjacent land uses along El Camino Real and Embarcadero Road, which are anticipated to be minimal or beneficial. This scope assumes that no relocations or full right-of-way takes will be required. Air Quality Conformity Documentation Caltrans requires that local project sponsors, in this case the City of Palo Alto, provide evidence that the project conforms to the federal Clean Air Act. This requires that the project be included in MTC’s Transportation Improvement Program (TIP) and evaluated by MTC’s Air Quality Task Force, which will likely determine that it is exempt from the project-level conformity requirements. The CONSULTANT will assist the City in coordinating with MTC staff for the purpose of having the project included in the TIP and evaluated by the Air Quality Task Force. Equipment Staging Memo The CONSULTANT will prepare a brief memo that describes the location(s) where construction equipment and materials will be staged. This scope assumes that those location(s) will be along roads within the existing right-of-way. It also assumes that such location(s) will not impact any sensitive biological habitats. Water Quality Memo A brief water quality memorandum will be prepared. The memorandum will focus on the measures and best management practices (BMPs) included in the project to reduce water quality impacts. The memorandum will also describe how the project will comply with the latest regulations designed to prevent or reduce water quality impacts. This applies to both the construction phase and the operational phase. Traffic Memo Caltrans will require a brief memo that summarizes the short- and long-term traffic impacts of the project. This scope assumes that such a memo will be prepared by the civil engineer or a traffic engineering firm contracted to the civil engineer for the project. The short-term needs to discuss whether there will be any road closures, detours, loss of on-street parking, or other impacts. The long-term needs to show the improvement in LOS with the project in place, as compared to the “no project.” Also, the memo should describe any benefits such as improvements for pedestrians DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 11 Revision July 20, 2016 and bicyclists. The CONSULTANT will review the memo for consistency with the Caltrans requirements and coordinate the submittal to Caltrans. Visual Impact Memo The CONSULTANT will prepare a qualitative visual study that describes the changes to the visual setting due to the proposed roadway modifications, as well as changes resulting from any tree removal. The visual study will include photographs to illustrate the text and will include completion of the Caltrans visual impact questionnaire. Initial Site Assessment An Initial Site Assessment (ISA) will be required to document the potential for hazardous materials or contamination to be present in the project disturbance area. The CONSULTANT will prepare a Caltrans-compliant ISA that will include a site reconnaissance, a review of historical documents and environmental databases, and preparation of the ISA checklist for hazardous waste. The CONSULTANT will review the ISA and coordinate submittal of the report to Caltrans. Soil and groundwater sampling, chemical analyses, and subsurface explorations are not included in this scope of work. Cultural Resource Studies The project will require compliance with Section 106 of the National Historic Preservation Act. The following tasks will be undertaken for this purpose. Area of Potential Effects Map The CONSULTANT will prepare an Area of Potential Effects (APE) map based on the project description. This scope of work assumes that right-of-way will only be required from the PALY property. Archaeological Survey Report The CONSULTANT will prepare a Caltrans-compliant Archaeological Survey Report (ASR) that will include the following tasks: DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 12 Revision July 20, 2016 • A records search will be conducted at the Northwest Information Center of the California Historical Resources Information System (CHRIS) of all cultural resources within a half mile and studies within a quarter mile of the project area, along with any additional resources or investigations that might be applicable. This will include an archival research and review of their maps and literature on file as well as those in Holman & Associates’ library. • Native American consultation will be conducted beginning with the Native American Heritage Commission (NAHC) and continuing with anyone on a contact list they provide. Those that do not respond will be re-contacted after two weeks. • An archaeological survey will be conducted of the entire project area. Inventory methods will be determined in the field, depending on the findings of the NWIC review, ground surface visibility, and other factors that have a bearing on archaeological sensitivity. • An Archaeological Survey Report (ASR) will be prepared based on Caltrans guidelines and consultation with their Professionally Qualified Staff (PQS). These will include a summary of the records search results, Native American consultation, and field survey as well as applicable maps. This report will be submitted to Caltrans’s PQS for review. This scope assumes there will be only one round of Caltrans review. This scope assumes that no cultural resources are present, or are likely to be present, within the project impact area. It also assumes that no subsurface testing will be warranted or required. Historic Resource Evaluation Report DPR 523 forms (Primary, and Building, Structure, and Object Records) will be prepared for Palo Alto High School, 50 Embarcadero Road. The campus includes up to 20 buildings, however, only two original 1918 buildings may be of historic significance. The historic research and documentation will include an overview of the high school’s development. DPR 523 forms will include descriptions, photographs, historical background, and an historic evaluation under National and California Register criteria. The scope of work will include field survey and photographing the buildings and archival research. A Historic Resource Evaluation Report (HRER) will be prepared and will include a Historic Context Statement for the Palo Alto area and the other report sections as per the Caltrans guidelines. Finding of Effect DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 13 Revision July 20, 2016 A Finding of Effect (FOE) will be prepared per Caltrans Guidelines if any of the Palo Alto High School buildings are eligible for the National or California Register. Historic Property Survey Report A Historic Properties Survey Report (HPSR) will be prepared that incorporates the archaeological information prepared in the ASR, HRER, and FOE into the current Caltrans form. This scope assumes there will be only one round of Caltrans review for the HPSR. Programmatic Section 4(f) Evaluation Assuming the preferred alternative will require right-of-way from the PALY property, the CONSULTANT will prepare a Section 4(f) Evaluation consistent with the Federal Highway Administration’s Programmatic Section 4(f) Evaluation for projects with Minor Involvement with Historic Sites. This analysis will evaluate the project’s consistency with the Programmatic 4(f) criteria as well as a discussion of the three required alternatives: 1) Do Nothing, 2) Avoid, and 3) New Location. Lastly, this process will include identification of minimization measures, coordination with state agencies, and development of findings regarding the feasibility of the three alternatives. This evaluation will be based in part upon conceptual designs developed by the City and/or design team. Biology Memo The CONSULTANT will prepare a brief memo describing the trees that will be removed by the project as well as the potential for them to support nesting birds and raptors. Replacement tree planting and landscaping will be described based on information provided by the City and/or the design team. Mitigation and avoidance measures to avoid impacts to nesting birds will be identified. Preliminary Environmental Assessment Report The CONSULTANT will prepare a brief memorandum (for City approval) for the community- preferred bicycle-pedestrian alignment alternatives on Embarcadero Road between El Camino Real and High Street. The memorandum will summarize the environmental resources that could be affected by the various alternatives, and will include a comparison of the impacts of the alternatives. If appropriate, the memorandum will identify which of the alternatives is DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 14 Revision July 20, 2016 “environmentally superior” and why. Limitations and Assumptions At this time, until the final project alternative has been determined and until Caltrans has reviewed all relevant information, the scope of the above studies cannot be determined with complete certainty. For example, Caltrans can require subsurface archaeological testing on streetscape projects because of the potential for wiring and irrigation systems, as well as digging for traffic signal mast arms, trees, sidewalk modifications etc., to affect archaeological resources. For a project of this size, such a requirement would add tens of thousands of dollars to the cost of the archaeological report. For the purpose of this preliminary scope and corresponding budget, it is assumed that the preferred design will not be one that requires subsurface testing and does not result in substantive impacts. Budgets may need to be refined after Caltrans provides input to the City. Task 4 – Development of Plans, Specifications and Engineer’s Estimate: Upon approval of the final environmental documents for the Embarcadero Road Corridor Improvements project, the CONSULTANT will proceed to prepare final plans, specifications, and engineer’s estimates for the construction of the project. The improvement plans may include the following sheets:  Cover Sheet  Project Notes  Project Plan and Profile  Demolition Plans  Plan Details for Improvements, including but not limited to: o Multi-Use Trail Sections o Enhanced Pedestrian Crossings o Accessible Pedestrian Ramps o Drainage Plans o Transit Station Plans DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 15 Revision July 20, 2016 o Landscape Improvement Plans o Signage & Striping Plans o Traffic Signal and Street lighting Improvement Plans o Utility Preservation and Connections o Utility Plans o Storm Water Pollution Prevention Plan o Construction Staging Plan  Project Specifications consistent with Palo Alto Standard Specifications, Special Provisions and Caltrans Design guidelines to match the Project Improvement Plan requirements  The CONSULTANT will provide 35%, 65%, 95% and 100% Engineer’s Estimates based on improvement plans and comparable bids for similar projects to ensure the project remains within the project budget (City may elect to hire an outside Construction Management (CM) firm for Value Engineering and outside PEER review. The CONSULTANT will work with CM cooperatively.) The CONSULTANT will apply for and complete forms required from Caltrans for design exceptions and encroachment permits. The CONSULTANT will submit a detailed schedule based on the improvements plans to the City which would include the following tasks:  Base 35% Plans Revised from Environmental Process o Community Outreach Meeting to Identify Landscape/Hardscape and Streetscape palette o Study Session with Architectural Review Board for approval of landscaping palettes and decorative pavement treatments recommended by the Project Landscape Architect and Project Engineer  65% Improvement Plans o Final Community Outreach Meeting  95% Check Print Plan Set DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 16 Revision July 20, 2016 o Presentation of Project to Planning & Transportation Commission  100% Bid Set o City Council Presentation of Final Project Meetings with City staff for the review of design plans, specifications and construction staging will be held on-site on a monthly basis. The City will be responsible for securing community and project team meeting facilities. The CONSULTANT will prepare all outreach materials, including media ads to be coordinated for publication by the City, meeting notice flyers for mailing to residents by the City, and community meeting presentations. The CONSULTANT will also serve as scribe at all community meetings and provide the City with meeting notes and action notes within 5- business days of each meeting. The CONSULTANT has assumed adequate review times for Caltrans review/approval process for the PEER/Encroachment Permit process. Deliverables for the development of the PS&E stage for this project will also include the following elements:  100% PS&E Bid Package  100% Engineers Cost Estimate  Procurement of necessary encroachment permits to allow for the construction of the project The City anticipates procurement of an outside Construction Management Firm during this stage to assist the City in reviewing plans prepared by the CONSULTANT and to conduct Value Engineering alternatives to ensure that the project remains on-budget. The CONSULTANT will work with the Construction Management firm during the development of the plans. The City will make available any survey and CAD files prepared as part of past studies. The CONSULTANT will prepare a project-specific survey to properly analyze the project area. The CONSULTANT will research and prepare a resolved boundary for the roadway on the above projects based on record information. This boundary will be used as the basis for the topographic and aerial mapping. DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 17 Revision July 20, 2016 Please note that the setting of boundary monumentation is NOT included in this scope. This boundary scope assumes that sufficient record data and monumentation exist to retrace the location of the El Camino and Embarcadero right of ways inside the project limits. It is also assumed that the monumentation will match record data. If sufficient monumentation does not exist or a discrepancy is found between the record information and the found monumentation, the CONSULTANT is required by the PLS Act to produce and file a Record of Survey with the County of Santa Clara. If a Record of Survey is required, the CONSULTANT will notify the client of the estimated scope and fee that will be needed to comply with the PLS Act. The CONSULTANT will complete a topographic survey of the El Camino and Embarcadero intersection. The topographic survey will be drafted at 20’ scale and be delivered as an electronic file to the design team. The horizontal and vertical datum of the surveys will be determined during coordination and prior to the start of work. The overall aerial topographic survey will include:  Embarcadero Road – Emerson St to El Camino Real  Galvez Street – El Camino Real to Arboretum Road  El Camino Real – Encina Avenue to Churchill Avenue  Town & Country Driveway  Palo Alto High School Driveway  Caltrain Multi-Use Trail – 100-FT North and South of Town & Country/Paly Access Points A conventional ground survey will supplement the aerial survey in areas anticipated to include improvements as part of this project. The limits of the ground survey will be:  El Camino Real - 50’ North and South of the curb returns at the intersection with Embarcadero, 10’ behind the face of curb or 5’ behind the back of walk  Galvez -50’ east of the curb return at the intersection of El Camino, 10’ behind the face of curb or 5’ behind the back of walk DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 18 Revision July 20, 2016  Embarcadero - 50’ east of the Palo Alto High School crosswalk and crosswalk traffic signal and 10’ behind the face of curb or 5’ behind the back of walk.  Pedestrian Access Route - The pedestrian access route on the North and South side of Embarcadero will be surveyed from the limits of the Embarcadero scope above, under the railroad Track Bridge and ending at the curb returns and crosswalks to Alma Street at Embarcadero. This pedestrian route survey will be limited to both sides of the sidewalk or elevated walkway at intervals sufficient for ADA mapping. Task 5 – Grant Assistance, Etc.: The Embarcadero Road Corridor Improvements project is funded through the design stage only. The CONSULTANT has capabilities to provide additional On Call Support Services during the design of the project to assist the City in pursuing grant funding for construction, architectural renderings, or other services as necessary to successfully implement the project. The CONSULTANT can provide a proposal for other services for design support during the construction phase of the project, and other tasks, once the project is better defined, and as requested by the City. Other services may also include: Visual Simulations: Computer generated visual simulations are powerful tools that help community members better visualize proposed improvements. The CONSULTANT would propose to develop up to three visual simulations to illustrate various intersections, connections, etc. Includes up to two revisions of each alternative. Transportation Simulation. As an optional task the CONSULTANT will prepare a simulation of transportation conditions with and without the proposed improvements. The primary purpose of the simulation would be to demonstrate the effectiveness of the pedestrian improvements. However, the effectiveness of the vehicular improvements also would be demonstrated. The simulation would provide a visual tool that could be used to communicate transportation concepts to the public. For budgeting purposes, this task assumes that the simulation would be prepared with and without two improvement alternatives for two time periods. The time periods would be chosen in consultation with the City and study team. Lighting Design. As an optional task the CONSULTANT can provide street (or other lighting) design. While standard traffic signal and safety lighting at intersections is included in the proposal, the CONSULTANT can also provide decorative pathway lighting, street lighting, or other lighting enhancements that help to create a sense of place and increase safety. DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 19 Revision July 20, 2016 Record of Survey. As an optional task the CONSULTANT would prepare a Record of Survey documenting found monuments, and/or setting new monuments, that would establish the right of way, if needed. Right of Way Acquisition Documents and Coordination. As an optional task the CONSULTANT can provide plat and legal descriptions for right of way and/or easement acquisition. Additional related tasks can be provided to assist the City with the property acquisition, if needed or requested. Additional Services: Additional services may be required for Caltrans reports, studies and alternatives analysis that will be required for project approval. AMENDMENT NO. 3 Caltrans Documentation:  Intersection lighting design o Caltrans review and coordination o Photometrics exhibits o Palo Alto preferred fixtures matching Stanford Ave and ECR intersection  Plans and specification coordination with Caltrans, City of Palo Alto, and Landscape Protected Intersection Changes:  Coordination with Stanford o Redesign for minimal encroachment into Stanford property o Accommodate proposed project at intersection on Stanford property o Implement Stanford’s desired use and aesthetic  Multiple major protected intersection design iterations to implement design review comments from Stanford, City of Palo Alto, and Caltrans. o 4 iterations of SE and SW corner o 2 iterations of NE and NW corner o Lane realignment o Pedestrian and bicycle circulation o Traffic striping and markings o Pavement materials Street Light Design:  Exhibits for lighting layout coordination  Proposed lighting layout, fixture schedule, notes, and details for the 65%, 95%, and 100% submittals DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 20 Revision July 20, 2016 EXHIBIT “C” COMPENSATION 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 Task 1 $62,680.00 (Plan Line Concepts, Peer/Ep) Task 2 $26,084.00 (Bike/Ped Connectivity Study) Task 3 $10,967.00 (Environmental Analysis/Assessment) Task 4 $92,224.00 (PS&E) Task 6 $28,495.50 (Grant Assistance, Etc.) Task 7 $9,900.00 (Aerial topography) Task 8 $49,500.00 (Hexagon (Subconsultant – Traffic Analysis) Task 9 $110,925.10 (Callander Associates (Subconsultant - Public Outreach/Landscape Design) Task 10 $93,054.50 (David J. Powers & Assoc. Subconsultant - Environmental) DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 21 Revision July 20, 2016 Sub-total Basic Services $483,830.10 (Tasks 1-10) AMENDMENT NO. 3 The following tasks are added to Basic Services by Amendment No. 3 to the Agreement. Task 1 $11,913.00 (Caltrans Documentation) Task 2 $20,667.50 (Protected Intersection Changes) Task 3 $12,305.00 (Street Light Design) Sub-total Amendment No. 3 Basic Services $44,885.50 Sub-total Basic Services $528,715.60 Reimbursable Expenses $5,758.90 Total Basic Services and Reimbursable expenses $534,474.50 Additional Services (Not to Exceed) $48,958.00 Maximum Total Compensation $583,432.50 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: 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 $3,000.00 shall be approved in advance by the CITY’s project manager. DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 22 Revision July 20, 2016 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 and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 23 Revision July 20, 2016 EXHIBIT “C-1” HOURLY RATE SCHEDULE Subtotal $220,450.50 Reimbursables (3%) [5] $5,758.65 $5,758.65 Aerial topography [4] $9,900.00 $9,900.00 Hexagon (Subconsultant - Traffic Analysis) [4] $49,500.00 $49,500.00 Callander Associates (Subconsultant - Public Outreach/Landscape Design) [4] $110,925.10 $110,925.10 David J. Powers & Assoc. (Subconsultant - Environmental) [4] $93,054.50 $93,054.50 Total $ 489,588.75 for Tasks 1-10 $ 489,588.75 [1] Project Manager category may also be billed to by: Alex Calder (survey Project Manager)), Ed Boscacci (Stormwater), or Roland Haga (QC/constructibility), depending on task requirements. [2] Engineer III role may also be served by others as needed to meet project needs, including a combination of Engineer II and Engineer I [3] Assumes project scope remains similar to initial concept. Expanded project limits, or revised concept, may require revisiting the number of hours required. [4] Subconsultant fee includes additional BKF 10% markup. 1 PLAN LINE CONCEPTS, PEER/EP Meetings (14) 32.0 $ 6,880.00 32.0 $ 5,664.00 28.0 $ 4,228.00 - $ - - $ - 92.0 $ 16,772.00 Concept Plan Line Alternatives 24.0 $ 5,160.00 44.0 $ 7,788.00 96.0 $ 14,496.00 - $ - - $ - 164.0 $ 27,444.00 PEER/EP 8.0 $ 1,720.00 40.0 $ 7,080.00 64.0 $ 9,664.00 - $ - - $ - 112.0 $ 18,464.00 Subtotal 64.0 $ 13,760.00 116.0 $ 20,532.00 188.0 $ 28,388.00 - $ - - $ - 368.0 $ 62,680.00 2 BIKE/PED CONNECTIVITY STUDY Additional Meetings (2) 4.0 $ 860.00 8.0 $ 1,416.00 8.0 $ 1,208.00 $ - - $ - 20.0 $ 3,484.00 Study 16.0 $ 3,440.00 40.0 $ 7,080.00 80.0 $ 12,080.00 $ - $ - 136.0 $ 22,600.00 Subtotal 20.0 $ 4,300.00 48.0 $ 8,496.00 88.0 $ 13,288.00 - $ - - $ - 156.0 $ 26,084.00 3 ENVIRONMENTAL ANALYSIS/ASSESSMENT Additional Meetings (2) 4.0 $ 860.00 8.0 $ 1,416.00 4.0 $ 604.00 - $ - - $ - 16.0 $ 2,880.00 Coordination 1.0 $ 215.00 24.0 $ 4,248.00 24.0 $ 3,624.00 - $ - - $ - 49.0 $ 8,087.00 Subtotal 5.0 $ 1,075.00 32.0 $ 5,664.00 28.0 $ 4,228.00 - $ - - $ - 65.0 $ 10,967.00 4 PS&E PS&E 24.0 $ 5,160.00 80.0 $ 14,160.00 320.0 $ 48,320.00 56.0 $ 13,944.00 80.0 $ 10,640.00 560.0 $ 92,224.00 Subtotal 24.0 $ 5,160.00 80.0 $ 14,160.00 320.0 $ 48,320.00 56.0 $ 13,944.00 80.0 $ 10,640.00 560.0 $ 92,224.00 5 GRANT ASSISTANCE, ETC. Misc. services, as requested TBD TBD TBD TBD TBD $ - Subtotal - $ - - $ - - $ - - $ - - $ - - $ 28,495.50 Task Description Principal Janine O'Flaherty @ $215 Proj. Manager [1] Jason Mansfield @ $177 Engineer III [2] Jason Yee @ $151 2-Person Survey Crew @ $249 Surveyor II Dustin Solt @ $133 Subtotal hrs $'s hrs $'s hrs $'s hrs $'s hrs $'s hrs $'s DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 24 Revision July 20, 2016 Amendment No. 3 Basic Services added by Amendment No. 3 shall be compensated based on the following fixed fee per task. DASH NO. WORK DESCRIPTION FEE BASIS ADDITIONAL FEE -11 Caltrans Documentation Fixed Fee $11,913.00 Protected Intersection Changes Fixed Fee $20,667.50 Street Lighting Design Fixed Fee $12,305.00 TOTAL FEE: $44,885.50 DocuSign Envelope ID: 02C6931A-A3FC-42F3-8FA3-ED7B91224BA4 Certificate Of Completion Envelope Id: 02C6931AA3FC42F38FA3ED7B91224BA4 Status: Completed Subject: Please DocuSign: Revised C16158064 BKF Amendment No 3_LH.TS edits.doc Source Envelope: Document Pages: 24 Signatures: 1 Envelope Originator: Certificate Pages: 2 Initials: 0 Christopher Anastole AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 chris.anastole@cityofpaloalto.org IP Address: 12.220.157.20 Record Tracking Status: Original 4/8/2019 8:32:13 AM Holder: Christopher Anastole chris.anastole@cityofpaloalto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Brian Scott Bscott@bkf.com Principal/Vice President Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 85.18.36.187 Signed using mobile Sent: 4/8/2019 8:43:05 AM Viewed: 4/8/2019 11:28:14 AM Signed: 4/8/2019 1:03:41 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Madina Klicheva Madina.Klicheva@CityofPaloAlto.org Administrative Associate II City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 4/8/2019 1:03:44 PM Viewed: 4/8/2019 1:16:14 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Shahla Yazdy Shahla.Yazdy@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 4/8/2019 1:03:45 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 4/8/2019 1:03:45 PM Certified Delivered Security Checked 4/8/2019 1:03:45 PM Signing Complete Security Checked 4/8/2019 1:03:45 PM Completed Security Checked 4/8/2019 1:03:45 PM Payment Events Status Timestamps City of Palo Alto (ID # 10181) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/22/2019 City of Palo Alto Page 1 Summary Title: Approval of Amendment No.2 with MuniServices LLC for Sales Tax Consulting Services Title: Approval of Amendment Number 2 to Contract Number S17167994 With MuniServices, LLC for Sales Tax Consulting Services to Increase the Amount by $40,000 for a new Not-to-Exceed Amount of $125,000 and to Extend the Term Through August 31, 2019 From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to execute Contract Amendment No. 2 to Contract No. S17167994 with MuniServices, LLC for sales and use tax audit and information services to increase compensation by $40,000 for a total not to exceed amount of $125,000 and to extend the contract term from May 1, 2019 to August 31, 2019 (Attachment A). Background The City of Palo Alto engages with MuniServices to provide sales and use tax audit and information services. Quarterly sales and use tax analysis reports are reviewed by the City and the Consultant to inform and provide analysis to the City of its top revenue producers; shifts in the local, state, and national economy and legislature related to sales and use tax; and sales and use tax performance of certain geographical areas of business category. Discussion The City contracts with MuniServices to provide sales and use tax audit and information services, which includes identifying and ensuring receipt of misallocated or underreported tax revenues. Revenue reporting services includes quarterly written reports and briefings concerning revenue performance, trend analysis, gains and declines, revenue projections, enhanced recovery options and an analysis of present and future issues related to revenue recovery. Quarterly sales and use tax reports from MuniServices provide the foundation for the City’s sales and use tax revenue projections. Analysis includes information from the California City of Palo Alto Page 2 Department of Tax and Fee Administration (CDTFA), the state agency that administers sales and use tax, of the city’s top revenue producers, indication of revenue changes by business and economic category, identification of major businesses that influence change in the City’s tax revenue, analysis of key business that grew or declined during the reporting period, identification of the top revenue generators in the City, and an analysis of their potential growth or decline. In addition, analysis from MuniServices includes reports by geographical area and revenue forecasting reports that are used in the City’s Long Range Financial Forecast (LRFF). MuniServices is compensated at a rate of 20 percent for revenue received as a direct result of MuniServices detecting and documenting point-of-sale or use taxpayer reporting errors and/or omissions with the CDTFA. Detailed listings of these findings are provided by MuniServices, along with the correction status of the item. MuniServices is compensated at a rate of 20 percent for these sales and use tax recovery services. A Request for Proposal (RFP) was issued in 2014 for sales and use tax consulting services. Two consulting firms responded to the RFP and MuniServices was selected based on the firm’s experience with engagement of similar scope and complexity. The existing contract with MuniServices expires May 2019 for a total not to exceed of $85,000. Staff requests Council authorization to extend the term of the contract to August 31, 2019 and to increase the total not to exceed by $40,000, bringing the contract total to $125,000. The additional contract amount will extend services for another four months and compensate MuniServices for increased revenue recovery efforts. Resource Impact Additional contract funds needed through the end of the fiscal year will be absorbed by the City Auditor’s Operating Budget. The FY 2020 Operating Budget assumes funding for sales and use tax audit and information services. Environmental Review These services do not constitute a project for the purposes of the California Environmental Quality Act. Attachments: • Attachment A: Muni Services Contract Amendment No 2 1 Revision July 20, 2016 AMENDMENT NO. 2 TO CONTRACT NO. S17167994 BETWEEN THE CITY OF PALO ALTO AND MUNISERVICES, LLC FOR PROFESSIONAL SERVICES This Amendment No. 2 to Contract No. S17167994 (“Contract”) is entered into May 2, 2019, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MUNISERVICES, LLC, a Delaware Limited Liability Company, located at 7625 N. Palm Ave., Ste. 108, Fresno, CA 93711 ("CONSULTANT"). R E C I T A L S A. The Contract was entered into between the parties for the provision of sales and use tax audits. B. City intends to extend the contract term and increase the compensation by $40,000.00 from $85,000.00 to $125,000.00 for continuation of the services as specified in EXHIBIT “A” SCOPE OF SERVICES. C. The parties wish to amend the Contract. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 2. TERM is hereby amended to read as follows: “SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through August 31, 2019 unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 2. Section 4. NOT TO EXCEED COMPENSATION is hereby amended to read as follows: SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed One Hundred Twenty Five Thousand Dollars ($125,000.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” 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. DocuSign Envelope ID: 13B90813-EDCF-421B-BB39-1BA950DFF573 2 Revision July 20, 2016 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. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO APPROVED AS TO FORM: MUNISERVICES, LLC DocuSign Envelope ID: 13B90813-EDCF-421B-BB39-1BA950DFF573 City of Palo Alto (ID # 10214) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/22/2019 City of Palo Alto Page 1 Summary Title: Adoption of MOA for SEIU 521 Title: Adoption of Memorandum of Agreement Between the City of Palo Alto and Service Employees International Union (SEIU) Local 521 From: City Manager Lead Department: Human Resources Recommendation Staff recommends that Council adopt a new Memorandum of Agreement (MOA) and salary schedule between the City of Palo Alto and the Service Employees International Union, Local 521 (SEIU) effective January 1, 2019 through December 31, 2021. Background As a local public agency, the City of Palo Alto is required under California State law to meet and confer in good faith with its recognized labor organizations to reach agreements regarding wages, hours and other terms and conditions of employment1. The teams of negotiators, including City representatives, Human Resources staff and management representatives, met with labor representatives in good faith and successfully reached a tentative agreement. A summary of the agreement terms is attached to this report and the proposed Memoranda of Agreement is attached as an exhibit. Analysis SEIU is the City’s largest bargaining unit, with approximately 580 budgeted full-time positions that support all major City services, including Utilities, Libraries, Public Works, Public Safety, and a wide range of administrative functions. The current 3-year contract expired on December 31, 2018. The parties met formally more than 23 times between September 2018 and March 2019. 1 The Meyers-Milias Brown Act (MMBA), adopted in 1968 as Government Code 3500, establishes the legal framework under which the public agency and labor organizations are required to meet and confer in good faith. As defined in the MMBA, the Memoranda of Agreement is a legally binding contract between the parties. City of Palo Alto Page 2 The parties reached a tentative agreement on March 20, 2019 and SEIU voted to ratify the tentative agreement on March 27, 2019. Several key factors influenced the bargaining environment during this negotiation: (1) Regional cost of living; (2) Specific recruitment and retention; and (3) Addressing long term liabilities. (1) Regional cost of living The San Francisco Bay Area Consumer Price Index (CPI) is on an upward trend and reached 4.5%2. The greater SF bay area home prices rose by 4.6% from December 2017 to December 20183. In addition, geography plays a greater role in impacting Palo Alto than many of our comparator agencies because 60% of the City’s workforce lives more than 30 miles from Palo Alto. This key factor makes Palo Alto vulnerable to losing employees to other cities or employers who are closer to their residence. (2) Specific recruitment and retention Turnover, retirements, and increased competition4, along with housing and transportation challenges have resulted in hiring difficulties throughout the City from executive management to front-line service providers. Although the City has increased recruiting efforts, critical vacancies continue to be challenging to fill in areas such as Utilities, Planning, Engineering, Public Safety dispatch, and Transportation. Within the SEIU bargaining unit alone there are currently 70 vacancies. This number has steadily grown over the past 3 years even as the City has recruited 171 new employees into this bargaining unit over this time period. (3) Addressing long term liabilities Council has taken proactive steps to address and properly consider the City’s long term financial obligations and the potential growth of current unfunded liabilities. (Pension, Active Health, Retiree Health) The features of the tentative agreement include: • A three-year term, designed to bring stability • An immediate 3.5% across-the-board increase for all positions • Additional market based, and recruitment/retention based incentives from 1%-20% for hard to fill, critical positions such as Utilities Lineperson Cable splicers and Engineers • 1% additional contributions from employees towards the employer pension contributions (Classic employees will contribute 10%, PEPRA employees 8.25%) • Establishment of a benefits committee to discuss long term delivery and funding of active and retiree health, in conjunction with other labor groups. 2 Based on the BLS CPI for SF bay area December 2018, which is commensurate with expiration of the contract 3 Source: research firm CoreLogic 4 SF bay area unemployment rates have continued to hold near record lows (2.1%) City of Palo Alto Page 3 • In agreement on a successor contract, the City and the Union settled all bargaining related grievances and legal challenges This compensation package will allow Palo Alto to be more successful in retaining current employees and to compete for new talent. Resource Impact This agreement is effective upon ratification and is anticipated to result in costs of up to $720,000 in FY 2019 across all funds, with the General Fund’s increase being $147,000. This is within budgetary estimates and it is not anticipated that a budgetary action will be necessary in FY 2019 to accommodate the two months of contract costs. This contract is anticipated to result in increased costs of $3.7 million in FY 2020, $4.4 million in FY 2021, and $4.8 million FY 2022 across all funds. In the General Fund, increased costs are anticipated to be $917,000 in FY 2020, $1.2 million in FY 2021, and $1.3 million in FY 2022. Cost increases are lessened in the third year of the contract due to the additional employee contribution to pension costs. To the extent practicable given the timing of this agreement, the ongoing implications of the increases have been factored into the development of the FY 2020 Operating Budget. The general wage increases and corresponding increases in pension, including the more conservative normal cost assumption using a 6.2% Discount Rate, have been incorporated into the Operating Budget. Costs associated with recruitment and retention have also been included in the General Fund. However, the additional costs associated with retention and recruitment disproportionately impact the enterprise funds, especially the Utility Funds. Given the high number of vacancies the targeted classifications are experiencing, it is recommended that budgetary action be incorporated at a later date for FY 2020 as necessary. Policy Implications This contract is consistent with the City’s Guiding Labor Principles adopted by Council on April 9, 2012. Environmental Review Council adoption of MOA affecting the wages, hours and working conditions of City employees is not a project under the California Environmental Quality Act (CEQA). Attachments: • Attachment A: Summary of Terms • Attachment B: SEIU 521 MOA 19-21 redline • Attachment C: SEIU 521 MOA 19-21 clean • Job Family Final • SEIU Salary Schedule 19-21 Service Employees International Union Local 521 (SEIU 521) Summary of Terms Tentative Agreement Reached on March 20, 2019 This summary of terms is not inclusive of all changes proposed in the attached memorandum of agreement but a high level overview. Other sections and items were/may have been amended as cleanup or to conform to updated legal definitions. Summary of Terms MOA Section Description TERM Expires December 31, 2021 Article III- Union Membership In 2018 the supreme court passed new guidance regarding the interpretation and implementation of “Agency Shop” language within collective bargaining agreements. This new ruling required sections of our existing contract with SEIU 521 to be updated to conform to the new interpretation of the law. Article VI- Personnel Actions Clarify record retention policy around violations of the Anti-Harassment State and federal laws, as well as incorporating City Policy. Article VIII- Hours of Work, Overtime, Premium pay Clarified overtime rules, updated Night Shift premium, and developed language to cover Job Shares. Article X- Holidays Updated process for closure in 7 day per week operations clarifying practice for closure on non-Fixed holidays. Article XII- Leave Provisions, Section 8- Personal Business chargeable to Sick Leave Increases cap for personal business leave from 20 hours to 30 hours. All hours are drawn from the Sick Leave bank at the beginning of each calendar year. Article XIV Benefit program, Section 1- Health Plan Effective January 1, 2020: • Employee only: $840 • Employee plus one: $1,680 • Employee Family: S2.180 Effective January 1, 2021, the City will increase its maximum contribution by 50% of average of the increases to Kaiser and PERS Choice. Provided however, that the total increase of the maximum City contribution shall not exceed 4%. Establish Retiree health committee to continue discussion regarding employee contributions towards retiree health liabilities, in conjunction with other labor groups. Article XV- Retirement Effective first full pay period including December 1, 2020 employees will contribute an additional 1% towards the employer pension contribution for a total of 2%. This contribution is in addition to employees already paying their full member contributions, traditionally 8% for classic employees. Appendix A Base Salary: Effective the first full pay period following adoption by Council (anticipated Council meeting April 22, 2019, (PP1O), employees in this unit shall receive a 3.5% salary increase. Effective the first full pay period including December 1, 2019 (PP25), employees in this unit shall receive 3.5% salary increase. Effective the first full pay period including December 1, 2020, employees in this unit shall receive a 3.0% salary increase. Recruitment and Retention POA Negotiations Summary of City’s Bargaining Proposals Last update: February 21, 2018 For job families below median after receiving the 3.5% salary increase upon Council adoption of the contract listed above, the City will provide market adjustments to market median. Job Families specified below are exempt from this section’s market adjustments. Effective the first full pay period following adoption of this contract by Council, the following additional adjustments will be made: a) Public Safety Dispatch (Job Family) will receive an additional 5% salary effective the first full pay period following adoption of this contract by Council for a total of an 8.5% salary increase. b) Lineperson Cable Splicer Job family (excluding Lineperson job series, Compliance Tech job series, Overhead Underground Troubleman, and Utility Systems Operator series) will receive an additional 10% salary effective the first full pay period following adoption of this contract by Council for a total of a 13.5% salary increase. c) Lineperson job series, Compliance Tech job series, Overhead Underground Troubleman, and Utility Systems Operator series will receive an additional 20% salary effective the first full pay period following adoption of this contract by Council for a total of a 23.5% salary increase. Appendix __ The parties agree to continue meeting and conferring over issues impacting the public safety dispatch unit, the status quo will be maintained until the completion of this meet and confer. CITY OF PALO ALTO Memorandum of Agreement City of Palo Alto and Service Employees International Union (SEIU) Local 521 January 1, 2019 – December 31, 2021 Deleted: December 1, 2015 – December 31, 2018 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 1 of 78 Deleted: December Deleted: 5 Deleted: 18 TABLE OF CONTENTS PREAMBLE ................................................................................................................... 6 ARTICLE I – RECOGNITION ....................................................................................... 6 Section 1 - Recognition. .............................................................................................. 6 Section 2 - Protection of Unit. ..................................................................................... 6 ARTICLE II - NO DISCRIMINATION .......................................................................... 6 Section 1 – Discrimination........................................................................................... 6 Section 2 - Right to Join the Union. ............................................................................. 7 ARTICLE III – UNION MEMBERSHIP ........................................................................ 7 Section 1 - Notice. ....................................................................................................... 7 Section 2 – Payroll Deductions .................................................................................... 7 Section 3. Certification of Union Membership. ............................................................ 7 Section 4. Indemnification, Defense and Hold Harmless .............................................. 8 Section 5 - Documentation........................................................................................... 8 Section 5 - Bulletin Boards and Departmental Mail. .................................................... 8 Section 6 - Access to Union Representatives................................................................ 9 Section 7 - Meeting Places. .......................................................................................... 9 Section 8 - Notification to the Union. .......................................................................... 9 Section 9 - Union Logo................................................................................................ 9 Section 10 - Public Notice. ........................................................................................ 10 Section 11 - Use of Agency Reports. ......................................................................... 10 Section 12 - Job Postings ........................................................................................... 10 Section 13 - Contracting Out ..................................................................................... 10 ARTICLE IV - STEWARDS ........................................................................................ 10 Section 1 - Union Officers. ........................................................................................ 10 Section 2 - Number of Stewards. ............................................................................... 11 Section 3 - Release Time. .......................................................................................... 11 Section 4 - Advance Notification Before Leaving Work Location. ............................. 11 Section 5 – Release Time........................................................................................... 11 Section 6 - Designated Union Space. ......................................................................... 12 Section 7 - Union Officers and Release Time. ............................................................ 12 ARTICLE V - REDUCTION IN FORCE ...................................................................... 12 Section 1 - Attrition. .................................................................................................. 12 Deleted: 116 Deleted: 116 Deleted: 116 Deleted: 126 Deleted: 126 Deleted: 126 Deleted: 127 Deleted: 127 Deleted: 137 Deleted: 137 Deleted: 137 Deleted: 148 Deleted: 148 Deleted: 158 Deleted: 159 Deleted: 169 Deleted: 169 Deleted: 169 Deleted: 1710 Deleted: 1710 Deleted: 1710 Deleted: 1710 Deleted: 1710 Deleted: 1710 Deleted: 1811 Deleted: 1811 Deleted: 1811 Deleted: 1811 Deleted: 1912 Deleted: 1912 Deleted: 1912 Deleted: 1912 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 2 of 78 Deleted: December Deleted: 5 Deleted: 18 Section 2 - Advance Notice. ...................................................................................... 12 Section 3 - Order of Layoff. ....................................................................................... 12 Section 4 - Seniority/Bumping Rights. ....................................................................... 12 Section 5 - Re-Employment List. ............................................................................... 13 Section 6 - Sick Leave Balances. ............................................................................... 13 Section 7 - Hourly Employees Performing Duties. ..................................................... 13 ARTICLE VI - PERSONNEL ACTIONS ..................................................................... 14 Section 1 - Probation. ................................................................................................ 14 Section 2 - Personnel Evaluations. ............................................................................. 14 Section 3 - Personnel Files. ........................................................................................ 14 Section 4 - Release of Information. ............................................................................ 15 Section 5 - Promotional Opportunities. ...................................................................... 15 g) Violations. ................................................................................................... 16 Section 6 - Rights. ..................................................................................................... 17 Section 7 - Apprentice Positions. ............................................................................... 17 Section 8 - Rotation. .................................................................................................. 17 ARTICLE VII - PAY RATES AND PRACTICES ........................................................ 17 Section 1 - Salary. ..................................................................................................... 17 Section 2 - Step Increases. ......................................................................................... 17 Section 3 - Working Out of Classification.................................................................. 17 Section 4 - Classification Changes. ............................................................................ 18 Section 5 - Reclassification Requests. ........................................................................ 18 Section 6 - Assignment to a Lead Position. ................................................................ 19 Section 7 - Total Compensation and Survey Database................................................ 20 Section 8 - Direct Deposit .......................................................................................... 20 ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY ......................... 21 Section 1 - Work Week and Work Day. ..................................................................... 21 Section 2 - Overtime Work. ....................................................................................... 21 Section 3 - Work Shifts. ............................................................................................. 23 Section 4 - City-Paid Meals. ...................................................................................... 23 Section 5 - Break Periods........................................................................................... 25 ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES ......................................... 27 Section 1 - Uniforms. ................................................................................................ 27 Deleted: 1912 Deleted: 1912 Deleted: 1912 Deleted: 2013 Deleted: 2013 Deleted: 2013 Deleted: 2114 Deleted: 2114 Deleted: 2114 Deleted: 2114 Deleted: 2215 Deleted: 2215 Deleted: 2316 Deleted: 2417 Deleted: 2417 Deleted: 2417 Deleted: 2417 Deleted: 2417 Deleted: 2417 Deleted: 2417 Deleted: 2518 Deleted: 2518 Deleted: 2619 Deleted: 2720 Deleted: 2720 Deleted: 2821 Deleted: 2821 Deleted: 2821 Deleted: 3023 Deleted: 3023 Deleted: 3325 Deleted: 3427 Deleted: 3427 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 3 of 78 Deleted: December Deleted: 5 Deleted: 18 Section 2 - Tool Allowance. ...................................................................................... 30 Section 3 - Shoe Allowance. ...................................................................................... 30 Section 4 – Certifications. .......................................................................................... 31 Section 5 - Weather Protection. ................................................................................. 35 ARTICLE X - HOLIDAYS ........................................................................................... 35 Section 1 - Fixed Holidays. ........................................................................................ 35 Section 2 - Pay for Fixed Holidays. ........................................................................... 36 Section 3 - Work on Fixed Holidays. ......................................................................... 36 Section 4 - Variations in Work Week. ........................................................................ 36 Section 5 - Floating Days Off .................................................................................... 37 ARTICLE XI - VACATIONS ....................................................................................... 37 Section 1 - Vacation Accruals. ................................................................................... 37 Section 2 - Holiday Falling During Vacation. ............................................................ 38 Section 3 - Illness During Vacation. .......................................................................... 38 Section 4 - Accrued Vacation Pay for Deceased Employees. ..................................... 38 Section 5 - Effect of Extended Military Leave. .......................................................... 38 Section 6 - Vacation at Termination. .......................................................................... 38 Section 7 - Vacation Cash Out. .................................................................................. 38 ARTICLE XII - LEAVE PROVISIONS ........................................................................ 39 Section 1 - Sick Leave. .............................................................................................. 39 Section 2 - Bereavement Leave. ................................................................................. 40 Section 3 - Military Leave. ........................................................................................ 41 Section 4 - Leave Without Pay................................................................................... 41 Section 5 - Jury Duty and Subpoenas ......................................................................... 41 Section 6 - Time Off to Vote. .................................................................................... 42 Section 7 - Disapproval of Leave of Absence. ............................................................ 42 Section 8 - Personal Business Leave Chargeable to Sick Leave. ................................ 42 Section 9 - Return to Assignment. ............................................................................. 42 ARTICLE XIII - WORKERS' COMPENSATION INSURANCE ................................. 42 Section 1 - Industrial Temporary Disability. .............................................................. 42 Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. 43 ARTICLE XIV - BENEFIT PROGRAMS..................................................................... 43 Section 1 - Health Plan. ............................................................................................. 43 Deleted: 3830 Deleted: 3830 Deleted: 3831 Deleted: 4335 Deleted: 4335 Deleted: 4335 Deleted: 4436 Deleted: 4436 Deleted: 4436 Deleted: 4437 Deleted: 4537 Deleted: 4537 Deleted: 4538 Deleted: 4638 Deleted: 4638 Deleted: 4638 Deleted: 4638 Deleted: 4638 Deleted: 4739 Deleted: 4739 Deleted: 4840 Deleted: 4941 Deleted: 4941 Deleted: 4941 Deleted: 5042 Deleted: 5042 Deleted: 5042 Deleted: 5042 Deleted: 5042 Deleted: 5042 Deleted: 5143 Deleted: 5143 Deleted: 5143 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 4 of 78 Deleted: December Deleted: 5 Deleted: 18 Section 2 - Dental Plan. ............................................................................................. 46 Section 3 - Vision Care .............................................................................................. 47 Section 4 - Life Insurance .......................................................................................... 47 Section 5 – Long Term Disability Insurance .............................................................. 47 Section 6 - Effective Date of Coverage for New Employees ...................................... 47 Section 7 - Dual Coverage ......................................................................................... 47 Section 8 - Deferred Compensation ........................................................................... 48 Section 9 – Dependent Care Assistance Program and Medical Flexible Spending Accounts. .................................................................................................................. 48 Section 10 - Training Programs. ................................................................................. 48 ARTICLE XV – RETIREMENT ................................................................................... 48 Section 1 - PERS Continuation. ................................................................................. 48 Section 2 - Employee Share. ...................................................................................... 49 Section 3. Employer Share. ........................................................................................ 50 ARTICLE XVI - COMMUTE INCENTIVES AND PARKING .................................... 50 Section 1 - Commute Incentive. ................................................................................. 50 Section 2 – Parking Lot Security – Municipal Service Center. ................................... 51 Section 3 – Bicycle Lockers and Motorcycle Parking. ............................................... 51 ARTICLE XVII - PHYSICAL EXAMINATIONS ........................................................ 51 ARTICLE XVIII – SAFETY ......................................................................................... 52 Section 1 - Health and Safety Provisions ................................................................... 52 Section 2 - Union Cooperation. .................................................................................. 52 Section 3 - Safety Committees and Disputes. ............................................................. 52 ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE ...................................... 53 Section 1 - General Provisions. .................................................................................. 53 Section 2 – Definitions. ............................................................................................. 53 Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure. ................................................................................................................. 53 Section 4 - Grievance and Appeal Procedure. ............................................................ 55 ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION ....................................................................................................................... 57 Section 1 - Preliminary Notice of Discipline. ............................................................. 57 Section 2 - Skelly Meeting. ........................................................................................ 58 Section 3 – Appeals. .................................................................................................. 58 Deleted: 5546 Deleted: 5547 Deleted: 5547 Deleted: 5547 Deleted: 5647 Deleted: 5647 Deleted: 5648 Deleted: 5648 Deleted: 5648 Deleted: 5748 Deleted: 5748 Deleted: 5849 Deleted: 5850 Deleted: 5950 Deleted: 5950 Deleted: 6051 Deleted: 6051 Deleted: 6051 Deleted: 6052 Deleted: 6052 Deleted: 6152 Deleted: 6152 Deleted: 6253 Deleted: 6253 Deleted: 6253 Deleted: 6253 Deleted: 6455 Deleted: 6657 Deleted: 6657 Deleted: 6758 Deleted: 6758 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 5 of 78 Deleted: December Deleted: 5 Deleted: 18 ARTICLE XXI - NO ABROGATION OF RIGHTS ...................................................... 58 ARTICLE XXII - OUTSIDE EMPLOYMENT ............................................................. 59 ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS ........................................ 59 ARTICLE XXIV - PROVISIONS OF THE LAW ......................................................... 59 Section 1 - Conformity and Separability of Provisions. .............................................. 59 Section 2 - Merit Rules and Regulations. ................................................................... 59 Section 3 - Resolution. ............................................................................................... 59 ARTICLE XXV - TUITION REIMBURSEMENT ....................................................... 59 ARTICLE XXVI - COST REDUCTION PROGRAMS................................................. 60 ARTICLE XXVII – TERM ........................................................................................... 61 APPENDIX A ............................................................................................................... 64 APPENDIX B. APPRENTICESHIPS ........................................................................... 66 APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION ................................................................................................................ 69 APPENDIX D. IN-LIEU PREMIUMS .......................................................................... 74 APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS .............................. 75 APPENDIX F. RECOVERY OF CITY TRAINING COSTS ......................................... 76 APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT ............ 77 2015-2018 MEMORANDUM OF AGREEMENT City of Palo Alto and SEIU Local 521 Deleted: 6858 Deleted: 6859 Deleted: 6859 Deleted: 6859 Deleted: 6859 Deleted: 6859 Deleted: 6859 Deleted: 6959 Deleted: 7060 Deleted: 7061 Deleted: 7464 Deleted: 7666 Deleted: 8069 Deleted: 8574 Deleted: 8675 Deleted: 8776 Deleted: 8877 Deleted: PREAMBLE 6¶ ARTICLE I – RECOGNITION 7¶ Section 1 - Recognition.7¶ Section 2 - Protection of Unit.7¶ Section 1 – Discrimination.7¶ Section 2 - Right to Join the Union.8¶ ARTICLE III - UNION SECURITY 8¶ Section 1 - Notice.8¶ Section 2 - Agency Shop.8¶ Section 3 - Documentation.10¶ Section 4 - Payroll Deduction.10¶ Section 5 - Bulletin Boards and Departmental Mail.10¶ Section 6 - Access to Union Representatives.11¶ Section 7 - Meeting Places.11¶ Section 8 - Notification to the Union.11¶ General.11¶ Change in City’s Financial Situation.11¶ Vacancies and Temporary Personnel.11¶ Section 9 - Union Logo.11¶ Section 10 - Public Notice 11¶ Section 11 - Use of Agency Reports.12¶ Section 12 - Job Postings.12¶ Section 13 - Contracting Out.12¶ ARTICLE IV - STEWARDS 12¶ Section 1 - Union Officers.12¶ Section 2 - Number of Stewards.12¶ Section 3 - Release Time.13¶ Section 4 - Advance Notification Before Leaving Work Location.13¶ Section 5 – Release Time 13¶ Section 6 - Designated Union Space.13¶ Section 7 - Union Officers and Release Time.14¶ ARTICLE V - REDUCTION IN FORCE 14¶... City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 6 of 78 Deleted: December Deleted: 5 Deleted: 18 PREAMBLE This Memorandum of Agreement (hereinafter “MOA” is entered into by the City of Palo Alto (hereinafter referred to as the “City”) and Local 521 Service Employees’ International Union, CTW (hereinafter referred to as the “Union”). For the purposes of this MOA “employee” shall mean an employee assigned to a classification within the SEIU General Employee bargaining unit. This MOA is pursuant and subject to Sections 3500-3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit Rules and Regulations. ARTICLE I – RECOGNITION Section 1 - Recognition. Pursuant to Sections 3500 - 3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations, the City recognizes the Union as the exclusive representative of a representation unit consisting of all regular full and part-time employees in the classifications listed in Appendix A attached hereto. This unit, shall for purposes of identification, be titled the SEIU General Employees bargaining unit (hereinafter “General Unit”). Section 2 - Protection of Unit. No supervisor will perform the work of an employee in the General Unit provided that there is an employee available who regularly performs such work. This does not preclude a supervisor from performing work of a minor nature or during bona fide emergencies or on a standby status when willing and qualified unit employees do not live within a reasonable response time of their work location. Supervisory personnel shall be called out to perform unscheduled work only when SEIU General unit employees are unavailable to perform such work or in cases of bona fide emergencies as defined in Article VIII, Section 2. In cases of bona fide emergencies, SEIU General Unit employees shall be called out to complete the necessary work after the immediate emergency situation has been reasonably contained. ARTICLE II - NO DISCRIMINATION Section 1 – Discrimination. The City of Palo Alto is committed to providing a work environment free from all forms of harassment and discrimination and agrees not to harass or discriminate against employees or applicants based on such characteristics such as race, ethnicity, color, religion, political affiliation, veteran status, military status, national origin, ancestry, disability, medical condition, marital status, age, pregnancy, sex, sexual orientation, gender identity and gender expression, or the perception that any person has such characteristic, and any other characteristic protected by federal or Deleted: ¶ City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 7 of 78 Deleted: December Deleted: 5 Deleted: 18 state law or City Ordinance. The City of Palo Alto will not harass or discriminate against employees from exercising their rights to organize in accordance with the Meyers-Milias Brown Act. Complaints of harassment and discrimination should be reported immediately to the Department of Human Resources and will be investigated in accordance with the City’s Policy and Procedures. Section 2 - Right to Join the Union. The City and the Union agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. ARTICLE III – UNION MEMBERSHIP Section 1 - Notice. When a person is hired in any of the covered job classifications, the City shall notify that person that the Union is the recognized bargaining representative for the employee and give the employee a current copy of the Memorandum of Agreement. When a group employee orientation is held for new employees of the bargaining unit, a union representative may make a presentation to such bargaining unit employees for the purpose of explaining matters of representation. The presentation shall not exceed 30 minutes. Section 2 – Payroll Deductions The City shall deduct Union membership dues and pay other mutually agreed upon deductions (including Committee on Political Education (COPE)) from the bi-weekly pay of member employees. The deductions in this Section shall not apply during any period where an employee is in an unpaid status and/or transfers or in any other manner leaves the representation unit. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain all authorizations for dues deductions signed by the individual from whose salary or wages the deduction or reduction is to be made. The City will direct employee requests to cancel or change deductions to the Union. Deductions may be revoked only pursuant to the terms of the employee’s written authorization. The City shall remit the deducted dues to the Union as soon as possible after deduction. Section 3. Certification of Union Membership. The Union agrees to provide the City on a monthly basis, a certified list of members and a statement that the Union has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made, and a Deleted: SECURITY Deleted: 15 Deleted: - Deleted: Agency Shop. Moved (insertion) [3] City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 8 of 78 Deleted: December Deleted: 5 Deleted: 18 statement that the Union shall indemnify the City for any claims made by the employee for deductions made in reliance on that certification, in accordance with Government Code Section 1157.12(a). Section 4. Indemnification, Defense and Hold Harmless Union agrees to indemnify and hold harmless the City and all officials, employees, and agents acting on its behalf, from any and all claims, actions, damages, costs, or expenses including all attorney’s fees and costs of defense in actions against the City, its officials, employees or agents as a result of actions taken or not taken by the City pursuant to this Article. Section 5 - Documentation. The City shall supply the Union with: a) a monthly electronic file on or before the 15th of the month with the names, addresses, classifications, hourly base pay, pay period number, work locations, work phone, home phone number, personal cellphone number, employee number, and personal email, Committee on Political Education (COPE) listed separately and last four digits of the Social Security number of all bargaining unit employees on file with the City except those who file written notice with the Human Resources Department objecting to release of addresses, home telephone number, personal cellphone number, or personal email address, in which case information will be transmitted without these objected items; and b) a list of bargaining unit new hires, terminations and retirements which occurred during the previous month. The Union shall supply the City, and as applicable, the employees, with documentation required by Government Code Section 3502.5 (f). Section 5 - Bulletin Boards and Departmental Mail. The Union shall have access to inter-office mail, existing bulletin boards in unit employee work areas for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission. The Union may send email messages only for the purposes set forth above. The IT Department will maintain the SEIU list and keep it current. The Union access to email is based on the following conditions: 1) emails to the SEIU list will be copied to the Human Resource Director, or designee at distribution; 2) emails to the SEIU list will only be sent by the SEIU Chapter Deleted: <#>Every employee in the bargaining unit covered by this Memorandum of Agreement shall: ¶<#>remain a member in good standing of the Union; or ¶ <#>pay to the Union a monthly service fee, to be set by the union in accordance with applicable law, in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization; or, ¶<#>in the case of an employee who certifies that he/she is a member of a recognized religion, body or sect which has historically held conscientious objection to joining or financially supporting public employee organizations, pay a charity fee, equal to the service fee, to a non-religious, non-labor charitable fund exempt from taxation under Section 501 (c)(3) of the Internal Revenue Code, chosen from one of the following three charitable organizations agreed to by the City and the Union (or any successor organization(s) agreed to by the City and the Union):¶ United Way of California¶ Community Health Charities¶ Environmental Federation of California¶ Union members may declare their intention to terminate Union membership by registered letter, return receipt requested, to the Director of Human Resources and the Union only during the 30- day period between 60 and 90 days before expiration of the MOA.¶ <#>Employees who are newly hired into or who join the bargaining unit shall elect one of the above payment deduction options by completing and submitting the Employee Election form within thirty (30) calendar days of being hired into a classification covered by this MOA.¶<#>To qualify for deduction of the Charity Fee, the employee must certify to the Union and City that he/she is a member of a bona fide religious body or sect that has historically held conscientious objection to joining or financially supporting public employee organizations. The employee is required to submit to the City and the Union a notarized letter signed by an official of the bona fide religion, body, or sect certifying that person’s membership. Upon ... Moved up [3]: <#>The deductions in this Section shall not apply during any period where an employee is in an unpaid status.¶ Deleted: Involuntary Service Fee Deduction Process: The City shall deduct a service fee from the salary of each bargaining unit member who has not authorized a dues deduction, service fee ... Deleted: : Deleted: e Agency Shop Arrangement Deleted: Sign-up forms for deduction of union dues, service fees and charity fees shall be provided by the Union and approved by the City.¶ Deleted: 3 Deleted: of Deleted: member/fee payer designation, Deleted: monthly Deleted: address Deleted: Section 4 - Payroll Deduction. The City shall deduct Union membership dues, service fees, charity fees, and any other mutually agreed upon payroll deduction, which may include ... Deleted: , and existing Union-paid telephone answering device City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 9 of 78 Deleted: December Deleted: 5 Deleted: 18 Chair, Vice Chair, Chief Steward (s) or Secretary, 3) a maximum of 52 emails may be sent per year and a maximum of 12 emails may be sent by the SEIU Chapter Secretary. Section 6 - Access to Union Representatives. Representatives of the Union are authorized access to City work locations for the purpose of conducting business within the scope of representation, provided that no disruption of work is involved and the business transacted is other than recruiting of members or collecting of dues, and the representative must notify the Human Resources Department prior to entering the work location. Section 7 - Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during lunch periods or other non-working hours. Such meeting places will be made available in conformity with City's regulations and subject to the limitations of prior commitment. Section 8 - Notification to the Union. a) General. Pursuant to Government Section 3500, et seq. (Meyers-Milias-Brown Act as amended), the Union shall be informed in advance in writing by Management before any proposed changes not covered by this Memorandum of Agreement are made in benefits, working conditions, or other terms and conditions of employment which require meet and confer or meet and consult process. This paragraph shall not be subject to the grievance procedure of this Memorandum of Agreement so long as the Public Employment Relations Board retains jurisdiction over the obligation to meet and confer in good faith. b) Change in City’s Financial Situation. Should the City’s financial situation deteriorate and the possibility of layoffs result, the City Manager will give prior notice to and consult with the Union prior to recommending any layoffs to the City Council. c) Vacancies and Temporary Personnel. The City agrees to notify SEIU Local 521 in writing when any irregular, temporary, hourly, provisional, special or extra help employee who consistently performs work typical of the SEIU Local 521 bargaining unit exceeds 1,000 hours of work within a 18-month period. The City agrees to notify SEIU Local 521 in writing when any position covered by this agreement is left vacant for more than 60 days. In coordination with the SEIU 521 Hourly representation Unit, the City and SEIU 521 may meet regarding the conversion of any long term and on-going hourly positions which may be converted to full time positions through the budget process. Section 9 - Union Logo. All materials and documents produced on Itek and metal plates, by the City print and reproduction shop, shall carry the Union label on the inside of covers or title pages in accordance with customary printing trades practices. Deleted: Office Deleted: T Deleted: ee Deleted: Through a separate meet and confer process, the City and Union will develop a way to convert long term, ongoing temporary-hourly positions to regular status. The City and Union will meet and confer regarding wages, benefits and terms and conditions of work. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 10 of 78 Deleted: December Deleted: 5 Deleted: 18 Section 10 - Public Notice. The City shall make available to the Union, in a timely manner, copies of all City Council meeting agendas, minutes and schedule of meetings. These materials will be available online via the City’s website. Section 11 - Use of Agency Reports. Upon request, the City shall provide to the Union reports by department on the use of agency temporaries filling representation unit vacant positions, or doing work similar to that of representation unit classifications. Section 12 - Job Postings. The City shall incorporate the requirements of this Article when publicizing job announcements for classifications covered by this Memorandum of Agreement. Section 13 - Contracting Out. The City through the labor management process will keep the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SEIU bargaining unit work traditionally performed by bargaining unit members at least thirty (30) days prior to the release of the City Manager’s proposed budget. The City will notify the Union in writing at least ninety (90) days prior to contracting work which has been traditionally performed by bargaining unit members. . Within the ninety (90) day period of contracting out, both parties may offer alternatives to contracting out and meet and confer on the impact of such contracting out of a bargaining unit employee work. The City will notify the Union in writing when contracting out work which has been traditionally performed by bargaining unit workers, where such contracting out is expected to replace a laid off bargaining unit position that has been eliminated within ninety (90) days prior to the date of the planned contract work. When feasible, the City will provide such notice prior to the beginning date of the planned contract work. The City will meet with the Union upon request to discuss alternatives. This provision does not apply to the filling of temporary vacancies of twelve (12) months or less duration. The City will provide the Union with a biannual list by department of all contract workers or vendors who are contracted by the City who perform work for the City. The City will make a reasonable effort to identify the names of the vendors on the list and the nature of the work provided by each vendor. ARTICLE IV - STEWARDS Section 1 - Union Officers. The Union agrees to notify the Director of Human Resources of those individuals designated as Union officers and stewards who receive and investigate grievances and represent employees before Management. Alternates may be designated to perform steward functions during the absences or unavailability of the steward. Deleted: , Deleted: where such contracting will result in layoff or permanent reduction in hours City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 11 of 78 Deleted: December Deleted: 5 Deleted: 18 Section 2 - Number of Stewards. The number of stewards designated by the Union at a given time shall not exceed thirty-five (35). Section 3 - Release Time. It is agreed that, as long as there is prior notice as specified below to the Supervisor and the release of stewards will not unreasonably disrupt City operations, stewards shall be allowed reasonable release time away from their work duties, without loss of pay, to represent a unit employee or employees on grievances or matters within the scope of representation, including: a) A meeting of the steward and an employee, or employees of that unit related to a grievance. b) A meeting with Management. c) Investigation and preparation of grievances. Grievances may be transmitted on City time. All steward release time shall be reported on time cards. Section 4 - Advance Notification Before Leaving Work Location. The Union agrees that the steward shall give no less than one (1) full business day advance notification to his/her supervisor before leaving the work location, except in those cases involving an unforeseeable circumstance that requires immediate union representation where advance notice cannot be given or when the relevant supervisor otherwise allows less notice. A supervisor may deny such a request for release from duty if the steward is needed to ensure real time delivery of services that the steward provides for the public or internal City customers and another employee who normally provides such services is not available on a straight time basis to relieve the steward, or in a bona fide emergency. If such denial occurs, the union may request the release of another of its designated stewards to perform the representation duties involved. Such request shall be processed in accordance with the terms set forth in this section except that the requirement for a full business day advance notice to the replacement representative’s supervisor shall not apply. Nothing herein shall preclude the City from rescheduling a meeting it has scheduled, to facilitate the attendance of a steward who has requested release if, in the City’s judgment, such change can be undertaken without undermining the objectives of the meeting. Section 5 – Release Time. Four Union officers, who are City employees, shall be allowed a reasonable amount of release time off for purposes of meeting and conferring or meeting and consulting on matters within the scope of representation. All such time will be reported on timecards. Deleted: Three City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 12 of 78 Deleted: December Deleted: 5 Deleted: 18 Section 6 - Designated Union Space. Union stewards may utilize space in assigned desks for storage of Union materials. In the event stewards are not assigned desks the City will provide locker or other mutually agreeable space for storage of Union materials. Section 7 - Union Officers and Release Time. Four union officers, who are City employees shall be allowed a reasonable amount of release time off for monthly Labor/Management Meetings. ARTICLE V - REDUCTION IN FORCE Section 1 - Attrition. In the event of reductions in force, they shall be accomplished wherever possible through attrition. Section 2 - Advance Notice. When the City determines that layoffs are imminent resulting from reduction in force within the representation unit, the City will give the Union such advance notice as is reasonable under the circumstances. The notice will indicate the departments and divisions which will be affected and the circumstances requiring the layoffs. The City will furnish the Union with a current representation unit seniority list with notice of layoff. Section 3 - Order of Layoff. If the work force is reduced within a department, division, or office for reasons of change in duties or organization, abolition of position, shortage of work or funds, or completion of work, employees with the shortest length of service will be laid off first so long as employees retained are fully qualified, trained, and capable of performing remaining work. Length of service for the purpose of this article will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Length of service ties will be determined by lot in a method agreeable to both parties. Employees laid off due to the above reasons will be given written notice at least thirty days prior to the reduction in force. A copy of such notice will be given to the Union. Such employees shall be offered priority employment rights to regular positions which are requisitioned and for which the employees are qualified for a period beginning with notification and ending sixty (60) days following the reduction in force. Employees transferred or reclassified under this section will be assigned to the step in the new classification salary range closest to the employee's salary range at the time of reclassification. Employees laid off pursuant to this section shall receive the balance of all regular City compensation owed and severance pay equal to one month’s salary at the employee’s final rate of pay at termination. This does not include any amounts payable under Article V, Section 6, or PERS contribution refunds, if any. Section 4 - Seniority/Bumping Rights. Employees identified for layoff who have seniority (bumping) rights to their current or previously held classifications within the Deleted: Six City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 13 of 78 Deleted: December Deleted: 5 Deleted: 18 representation unit must declare their intention to exercise these rights in writing and submit to the Human Resources Department within seven (7) working days after written notification of layoff, otherwise bumping rights will automatically terminate. Bumping may occur within the representation unit, only to the least senior incumbent of the current or a previously held classification. To bump, the employee must be fully qualified, trained, and perform all work in the position. For purposes of this section of the Agreement, the term "working days" shall mean Mondays through Fridays, exclusive of holidays. When an employee returns to work from a military protected leave, they will be reinstated as required by law. Should this result in bumping a current employee; the displaced employee will have bumping rights as set forth in this section. Section 5 - Re-Employment List. The names of employees laid off or who through bumping changed classification in accordance with the provisions of this Article shall be entered upon a re-employment list in seniority order. The employee with the greatest seniority on the re-employment list, including those who exercised their bumping rights, shall be offered reinstatement first. Such notice of reinstatement shall be in writing with a copy to the employee, Union and Chapter Chair. If a laid off employee waives reinstatement or fails to respond within ten (10) working days of receipt of the notice, the employee shall be removed from the reemployment list. The person with the highest seniority including those who exercised their bumping rights on a re- employment list for a particular classification when a vacancy exists in that classification shall be offered the appointment. Names shall be carried on a re-employment list for a period of two (2) years from the date of separation from City services or change of classification through bumping. Upon re-employment within the two-year period, the employee's hire date of record at the time of layoff will be reinstated. When qualifications are in question, the City and SEIU will meet and confer. Section 6 - Sick Leave Balances. Employees laid off pursuant to Section 2 who are reinstated to a regular position within sixty (60) days shall retain the sick leave balance they had at the time of layoff, unless they have received a sick leave payoff in accordance with Article XII. Section 7 - Hourly Employees Performing Duties. No representation unit employee will be laid off or remain on a re-employment list when hourly employees are performing substantially all the duties of the classification of the employee receiving a layoff notice or on a re-employment list. This provision shall not be applied to hourly positions which have been traditionally used for seasonal and part-time work. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 14 of 78 Deleted: December Deleted: 5 Deleted: 18 ARTICLE VI - PERSONNEL ACTIONS Section 1 - Probation. Each new regular or part-time employee, except employees in police dispatch positions, shall serve a probationary period of twelve (12) months, commencing with the first day of his/her employment. Each new regular or part-time employee in dispatch positions will serve an 18-month probationary period commencing with the first day of his/her employment. The probationary period shall be regarded as a part of the testing process and shall be utilized for closely observing the employee's work, for securing the effective adjustment of a new employee to his/her position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. At least one written performance appraisal will be given to each probationary employee on or before expiration of the probationary period. This appraisal will be given approximately at the end of the sixth month and another at the end of the twelfth month for employees in police dispatch positions. In the event of termination prior to successful completion of the probationary period, such terminated employee shall be given written notice of his/her termination with the reasons for the termination stated therein. The Human Resources Department shall, upon request, afford an interview in a timely fashion to the terminated employee for discussion of the reasons for termination. The employee may, upon request, be accompanied by a Union representative. The interview shall not be deemed a hearing nor shall it obligate the City to reconsider or alter the termination action. The parties agree that probationary employees shall have all rights under this Memorandum of Agreement, including full and complete access to the grievance procedure, save and except for instances of suspension, demotion or termination. Section 2 - Personnel Evaluations. Personnel evaluations will be given to employees annually as scheduled by Management. Personnel evaluations are not appealable through the grievance procedure but, in the event of disagreement over content, the employee may request a review of the evaluation with the next higher level of Management, in consultation with the Human Resources Department. For purposes of this review, the employee may be represented by the Union. Decisions regarding evaluation appeal shall be made in writing within ten (10) working days following the review meeting. Section 3 - Personnel Files. Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Union representatives. An employee or the Union shall be allowed, upon reasonable request, copies of materials in an employee's personnel file relating to a grievance. Records of disciplinary actions, including references in a performance evaluation, shall be removed from a personnel file upon written request by the employee after a period of four years, or sooner as Deleted: three City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 15 of 78 Deleted: December Deleted: 5 Deleted: 18 mutually agreed by Management and the employee so long as there have been no duplicated policy violations since the discipline (based on the Notice of Disciplinary Action) and the disciplinary action did not involve a violation of the City’s anti- harassment policy, or state and federal harassment and discrimination laws. Section 4 - Release of Information. The City will only release information to creditors or other persons upon prior identification of the inquirer and acceptable reasons for the inquiry. Information then given from personnel files is limited to verification of employment, length of employment and verification and disclosure of salary range information. Release of more specific information may be authorized by the employee. Section 5 - Promotional Opportunities. a) Posting. Promotional opportunities for classifications within the representation unit will be posted for at least ten (10) working days (Monday through Friday) prior to selection. Outside recruitment may be used for promotional openings and may begin at the time of posting, or any time thereafter. If, however, there are three or more qualified internal candidates within the department where the vacancy occurs, and those candidates successfully complete the selection process, outside candidates will not be considered. b) Internal Candidate Eligibility. All non-probationary representation unit employees are eligible to apply for posted promotional opportunities, except that Management may waive this requirement for all probationary employees within the department where the promotional opportunity occurs. c) Selection. The selection procedure for each promotional opening will be determined and administered by the Human Resources Department in consultation with the requisitioning department. Selection procedure and job description information will be available at the Human Resources Office at the time of posting. Efforts will be made to standardize tests and procedures where standardization is feasible and appropriate. Any tests used shall be reasonably predictive of success in the classification, and tests not be biased with respect to race, sex, sexual orientation, religion, creed, political affiliation, color, national origin, ancestry, or age. Selection procedures may include any or all of the following phases: 1) Application. Both inside and outside candidates must complete a City of Palo Alto application form specified by the Human Resources Department. Applications must be submitted to the Human Resources Office. 2) Screening. Applications will be screened by the Human Resources Department and, in some circumstances, a manager from the Department seeking to fill a City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 16 of 78 Deleted: December Deleted: 5 Deleted: 18 position to ascertain whether candidates meet minimum requirements as outlined in the job description. Internal candidates deemed not to meet minimum requirements may submit additional qualification information writing within three working days of notification of requirement deficiency. 3) Performance Testing. Performance tests, such as typing, machinery or vehicle operation, skills demonstration, physical agility, etc., will be qualifying. Pass-fail points will be announced in advance for qualifying tests. If requested in writing prior to the test, performance test may be witnessed by Union steward. 4) Written Tests. Written achievement or aptitude tests will be qualifying. Pass- fail points will be announced in advance for qualifying tests. 5) Interviews, Appraisals. Interviews may be conducted individually or by interview boards and will be qualifying. Interview boards shall be composed of qualified and unbiased people. Where interview boards are used, Management will include at least one bargaining unit employee on each board. If individual interview or an interview board is used, a majority of the individuals or board members must recommend a candidate in order for the candidate to qualify for appointment. Performance appraisals written by candidates' supervisors may be used as indicated in the selection procedure. d) Recommended Candidates. Candidates who successfully complete all phases of the selection procedure will be recommended to the appointing authority. e) Seniority. Seniority, for purposes of this Article, will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Seniority ties will be determined in favor of the employee with the lowest employee number last four digits. Exceptions to this subsection may be established by mutual agreement on a departmental or divisional basis. Such exceptions are listed in Appendix G. f) Appointment. The appointing authority will make appointments from among those recommended candidates who are most qualified as determined by objective review of selection procedure results and background materials. Where appointments are made from only internal candidates who are equally qualified as determined by objective review of selection procedure results and past performance, seniority will be the determining factor in promotional appointments. g) Violations. Any violation of this Article may be appealed to the Human Resources Director in Step III of the grievance procedure. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 17 of 78 Deleted: December Deleted: 5 Deleted: 18 Section 6 - Rights. Unit employees applying for a vacant equal or lower paying position shall have the same rights as unit employees applying for a promotion. Section 7 - Apprentice Positions. (a) The City shall establish apprentice positions wherever feasible. Length of apprenticeship, type of training, and pay levels shall be by mutual agreement. Where possible, apprentice positions will underfill regular positions so that incumbents may automatically progress to the classification for which they are training upon successful completion of apprenticeship. The City will meet and confer with the Union before adding any new apprenticeship programs during the term of this agreement. All apprenticeship programs are listed in Appendix B. Section 8 - Rotation. In assigning employees to regular or special shifts, transfer, standby, overtime, or vacation selection, ability to perform the work, length of service or equitable rotation shall determine the assignments. In accordance with this provision, more definitive rules may be arranged by mutual agreement of the Union and individual City departments. ARTICLE VII - PAY RATES AND PRACTICES Section 1 - Salary. The base salary rates and ranges for job classifications covered by this bargaining unit shall be increased as set forth in Appendix A to reflect salary increases for all positions in the unit and market adjustments to positions identified in the total compensation survey as under-market based on the survey results for base, cash, insurance and the normal cost of retiree medical (when such information is required by and verified through the CAFR), with total rates and ranges as set forth in Appendix A (Salary Schedule) attached hereto. Section 2 - Step Increases. Merit advancements from the first salary step to the second salary step shall be granted upon successful completion of probation and between second and subsequent steps at one-year intervals, if the affected employee has demonstrated continued improvement and efficient and effective service. For the purpose of determining step time requirements, time will commence on the first day of the month coinciding with or following entrance onto a salary step. Step increases shall be effective on the first day of the payroll period in which the time requirements have been met. Section 3 - Working Out of Classification. The term "working out of classification" is defined as a Management authorized full-time assignment to a budgeted/approved position on a temporary basis wherein all significant duties are performed by an individual holding a classification within a lower compensation range. Out-of- classification provisions do not apply to work assignments performed in connection with Deleted: -1 Deleted: -2 Deleted: Deleted: City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 18 of 78 Deleted: December Deleted: 5 Deleted: 18 specific predetermined apprenticeship or training programs, or declared conditions of public peril and/or disaster. Pay for working out of classification shall be as follows: a) Employees appointed to an "out of classification" will receive acting pay beginning the first day of the assignment and shall be paid for all hours worked in the higher classification provided employee works a minimum of four (4) hours. b) Where out-of-class appointments last for more than 90 days, and whenever feasible, an out-of-class appointment will be rotated among qualified interested employees in the work group. c) Employees will receive 5% premium pay for all assigned out of class pay for work within SEIU Classifications with the exception of lead assignments where the out of class pay will result in a 7% premium pay. d) Employee appointed to “out of class” assignments that are in the Management and Professional Compensation Plan or in Utilities Management and Professional Association for at least one workweek will receive up to a 10% premium pay. Section 4 - Classification Changes. a) During the course of this agreement, the Union and affected employees shall be notified in advance of any contemplated changes in classification description, wage range or steps. Such changes shall be subject to the meet and confer process. Such meet and confer process shall be concluded within no more than thirty (30) days following delivery of the City’s notice to the Union. If the Union and the City cannot reach agreement on the appropriate pay level from a job so reclassified, the Union may, within ten (10) City business days following the conclusion of the meet and confer process described above by delivery of written notice to the Human Resources Director, refer the dispute over the proposed wage range or steps to arbitration at Step IV of the Grievance Procedure set forth at Article XIX of this Memorandum of Agreement. Section 5 - Reclassification Requests. a) An employee or his/her representative may request in writing a re-evaluation of his/her job based on significant permanent changes in job content or significant discrepancies between job content and classification description. The request must be in writing, contain justification and may be made only on an annual basis during the period of September 10 through October 10. A statement by management that a job reevaluation request will be submitted with the departmental budget does not relieve an employee from the responsibility of City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 19 of 78 Deleted: December Deleted: 5 Deleted: 18 submitting his/her own request during this period. The Human Resources Director or his or her designee will initially respond to such requests within ninety (90) calendar days by notice to the employee and the union; however, this timeline may be extended if necessary. Such response shall include any reclassification to a different classification or changes in description that the City believes are warranted and any related changes in applicable pay range or steps. If meetings are held, the employee may request representation. If a reclassification is approved and results in an increase in salary, it shall be retroactive to the date the Employee or Union filed the request for the reclassification. b) If the employee or Union disagrees with the accuracy of the description of duties resulting from the study conducted pursuant to subsection (a) of this Section or with the wage range or steps assigned by the City as a result of the study, the employee or Union may, within ten (10) City business days of delivery of notice of such determination, appeal such decision under step IV of Article XIX, Grievance Procedure. c) In a dispute under Section 4(a) or section 5(b) above, the arbitrator shall render his or her decision on the appropriate wage range or steps within twenty-one (21) days after the initial hearing date. The same time line will be observed for disputes over the accuracy of the revised classification description. The parties will notify the arbitrator of this deadline at the time of the arbitrator’s selection. In reaching a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator shall base his or her award on the factors traditionally taken into account in the establishment of compensation. When deciding a dispute over the accuracy of the revised classification description under section 5(b) above, the arbitrator shall identify the modifications of the pre-existing classification necessary to accurately reflect the permanent changes, if any, that have been implemented. Upon receipt of the arbitrator’s award, the City shall implement the revised classification and wage range or steps as provided in the award except as provided under subsection 5(c) of this section below. Notwithstanding an arbitrator’s award pursuant to any appeal process, the City retains the right to forego implementing the changes and the proposed changes shall revert to the status quo as it existed before those changes in duties occurred or were proposed. d) An employee may submit a request for reclassification for the same classification no more than once every twenty-four (24) months. Section 6 - Assignment to a Lead Position. All vacancies in lead positions shall be filled in accordance with Article VI, Section 5. The pay range for the lead position shall be City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 20 of 78 Deleted: December Deleted: 5 Deleted: 18 seven percent above the pay step of the highest paid employee on the crew. Departmental exceptions for filling lead positions on a rotational basis for training and development purposes may be arranged by mutual agreement of the Union and individual City departments. Section 7 - Total Compensation and Survey Database. a) Management and the Union have agreed to a compensation survey database structure which identifies specific benchmark classifications for job families, classifications within the job families of each benchmark classification, survey agencies and survey classification matches. Survey Cities include: Alameda Hayward San Mateo Berkeley Mountain View Santa Clara Daly City Redwood City S. San Francisco Fremont San Jose Sunnyvale If the employer list will not permit the production of a survey report that includes data from at least four (4) employers that employ employees in a classification comparable to the classification surveyed by the City, neither party is precluded from bringing forward information on other employers in the relevant recruitment area that employ workers in a comparable classification so that data from at least five (5) surveyed employers will be included in the study, if feasible. Such employer may include any public or private employer. The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. The City will update the survey database and send the Union a copy six weeks before expiration of this agreement. This survey will be considered in connection with special adjustment proposals in successor agreement negotiations. By agreeing to a survey database, neither Union nor Management is under obligation to propose or agree to special adjustments. Section 8 - Direct Deposit The City shall directly deposit all paychecks for Unit employees in a financial institution of the employee’s choice that accepts direct deposits and does not charge the City a fee(s) for direct deposit service. In the event that the employee fails to designate a financial institution for direct deposit of his or her payroll check, the employee shall pick up the check personally in the City’s Administrative Services Department office on the next business day following payday at a pickup time designated by Administrative Services. Deleted: Beginning in the first pay period following union ratification and adoption of this Agreement by the City Council, t City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 21 of 78 Deleted: December Deleted: 5 Deleted: 18 ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY Section 1 - Work Week and Work Day. The standard workday for regular full time employees shall be one of the following: • Eight hours to be worked within a maximum of nine hours (five-day work week); or • Ten hours to be worked within a maximum of eleven hours (four-day work week); or • Nine hours to be worked within a maximum of ten hours for four days with a fifth day of four hours (four and one-half day work week); or • Within a fourteen-day period, nine hours to be worked within a maximum of ten hours for eight days and eight hours to be worked within a maximum of nine hours for one day, with the work week scheduled to begin so that forty hours are worked within each seven days of the fourteen-day period (9/80 plan, with forty- hour work weeks), or any other schedule that results in a 40-hour work week, or fits within the parameters of an FLSA 2080 Plan. The "9/80 plan" may not be used in any application that requires entitlement to FLSA overtime for working the regular work week. With the exception of the 9/80 plan as described above and flexible scheduling for Police Dispatchers, the standard work week for regular full time employees shall be forty hours to be worked within five consecutive days. Additional exceptions to the above are listed in Appendix C. The Union shall be notified of any further exceptions to this section in accordance with Article III, Section 8. The City and the Union agree that the availability of alternate/flexible work schedules is a valuable benefit in that they promote job satisfaction while also reducing traffic congestion and air pollution. Employees may utilize flexible arrangements to attend trainings, seminars, meetings, or for other mutually agreed upon situations. Any such change to work hours shall be approved by the supervisor in advance and should not result in overtime. During the term of this agreement, employees, subject to the conditions of their job assignment, may propose an alternate work schedule as listed under this Section. Such proposals must be made to the department head through the immediate supervisor. Serious consideration will be given to the feasibility and productivity of such proposals, however Management retains the right to determine scheduling needs. Section 2 - Overtime Work. a) Overtime work for all unit employees shall be defined as any time worked beyond the standard workday or beyond the standard work week. Deleted: e Deleted: t Deleted: n Deleted: , Deleted: w Deleted: one Deleted: ten Deleted: D Deleted: ¶ City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 22 of 78 Deleted: December Deleted: 5 Deleted: 18 All time for which pay is received shall count as hours actually worked for the computation of regular overtime pay; however, non-productive time will not be included in computation of any additional FLSA premiums. b) Emergency overtime is defined as unplanned overtime work arising out of situations involving real loss of service or property or personal danger. Emergency overtime does not include: i. overtime work resulting from personnel replacement for purposes of maintaining scheduled staffing; ii. overtime work which is planned in advance; iii. overtime work resulting from being held over for up to four hours to finish work performed during the regular shift. c) Compensation to employees working overtime will be in the form of additional pay at the rate of one and one-half times the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one-half hours for each hour of overtime worked, subject to the limitations of applicable state and federal laws. Two times the employees’ applicable hourly salary will be paid for billable customer convenience overtime and emergency overtime as defined in subsection (b) above) Employees may elect at any time to cash out compensatory time off hours or roll into vacation time, up to applicable maximums. These elections must be made via the Compensatory Time Cashout Form submitted to payroll and will take place the following pay period, if received by the form’s due date. Any compensatory time off hours not taken, allocated, or cashed out will be automatically cashed out once a year during the first pay period in April. d) When an employee is required to work 6 or more hours of overtime (either emergency or pre-arranged) during the 16 hour period immediately preceding the beginning of the employee’s regular shift on a workday, the employee shall be entitled to an nine (9)hour rest period before returning to work. If the rest period overlaps into the second half of the work day, the employee may be given (with supervisor approval) the remaining time off (up to a maximum of 3 hours) at the straight time rate of pay. Any portion of the rest period falling within the employee’s work shift will be considered as hours worked and compensated at the straight time rate. Moved (insertion) [1] Deleted: regular rate Deleted: a Deleted: the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one-half hours for each hour of overtime worked, subject to the limitations of applicable state and federal laws. Deleted: In the event compensatory time off is used as the method of compensating for Overtime, the time off will be taken prior to the end of the quarter following the quarter in which the overtime has been worked. In the event the employee is denied this provision, he/she will be compensated in pay for such time at the appropriate rate specified by these sections. Or at the employee's option, the earned compensatory time will be added to the employee's vacation balance. Moved up [1]: All time for which pay is received shall count as hours actually worked for the computation of regular overtime pay; however, non-productive time will not be included in computation of any additional FLSA premiums.¶ Deleted: eight Deleted: - City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 23 of 78 Deleted: December Deleted: 5 Deleted: 18 e) If non-emergency overtime is canceled without at least 40 clock hours notice, the City shall pay the affected employees two (2) hours' pay at time and one- half. f) Employees working overtime who are too fatigued to continue or return to work, for safety reasons will be released from duty without compensation. g) Part-time Employees. Authorized hours worked by an employee in a budgeted, part-time position in excess of the scheduled hours of work of the position shall be compensated at the employee’s applicable hourly rate up to the maximum of non-overtime hours in the work period applicable to the employee. If a part- time employee works more than 80 hours in a pay period then overtime will be paid in accordance with the FLSA. Section 3 - Work Shifts. All employees shall be assigned to work shifts with scheduled starting and quitting times. Should conditions necessitate a change in starting and quitting times, the Union will be notified ten (10) working days in advance and permitted to discuss such changes with the City. This, however, shall not preclude the City's right to effect schedule changes dictated by operational necessity. This section does not apply to overtime scheduling. Section 4 - City-Paid Meals. In accordance with City policy, the City of Palo Alto bases its meal reimbursement limits on the U.S. General Services Administration (GSA) per diem rates. Those rates are adjusted every October. For overnight travel per diem rates, the City reimburses based on the rates applicable to the destination of travel, as provided by the GSA at http://www.gsa.gov/portal/category/100120. For non-travel meals, the City will reimburse up the maximum GSA rates for the Palo Alto area. Receipts are required to back-up these expenses. a) Emergency overtime meals. For purposes of this section, emergency overtime is defined as unplanned overtime arising out of situations involving real loss of service or property or personal danger. The City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area and will provide meals in the following emergency overtime situations: 1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR, Deleted: ¶ Deleted: (current non-travel meal maximum rates as of October 1, 2015 are $15 for breakfast, $16 for Lunch and $28 for dinner) City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 24 of 78 Deleted: December Deleted: 5 Deleted: 18 2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR, 3) When an employee is called out two hours or more before a regularly scheduled day shift and works the regularly scheduled shift, he/she will be entitled to breakfast and lunch. Lunches will be consumed on employee's own time. No in-lieu pay will be made for meals not taken. This sub-section does not apply if already covered in Section 4(a)(1) above. 4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. b) Non-emergency overtime meals. The City will provide meals for personnel assigned to non-emergency overtime work where the assignment extends two hours after the regular or overtime shift end and at intervals of five hours thereafter. c) With regard to (a) and (b) above, the City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area . Where possible, the City will arrange purchase orders at mutually agreeable restaurants. The time necessarily taken to consume a meal provided under this section shall be considered as time worked to a maximum of one hour, except as noted in (a) (3). d) With regard to (a) and (b) above, in the event an employee is to be provided a meal or meals pursuant to this section and such meal(s) are not provided due to working conditions, the employee shall have the option of receiving for each meal not provided an additional one hour of overtime compensation in lieu of such meal. This hour will not be considered as time worked or part of the rest period, but will be applied to qualify for the rest period. e) Emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in an emergency overtime situation involving real or potential loss of service or personal danger. 1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. Deleted: (current non-travel meal maximum rates as of October 1, 2015 are $15 for breakfast, $16 for Lunch and $28 for dinner) City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 25 of 78 Deleted: December Deleted: 5 Deleted: 18 2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. 3) When an employee is called out two hours or more before a regularly scheduled shift. The employee will be entitled to two meals, the second meal will be consumed on the employee's own time. No in-lieu pay will be made for meals not taken. 4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. f) Non-emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in non-emergency situations where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. If the City is unable to provide a meal, the City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area. This policy only applies when an employee is held over, either voluntary or mandated, on duty beyond a scheduled regular or overtime shift. Section 5 - Break Periods. All employees shall be granted a break period or coffee break limited to 15 minutes during each four hours of work. Departments may make reasonable rules concerning break period scheduling. Break periods not taken shall be waived. Section 6 - Clean-Up Time. All employees whose work causes their person or clothing to become soiled shall be provided with reasonable time before lunch and at shift end for wash-up purposes. Section 7 - Standby Pay, Call-Out Pay. a) Standby Compensation. Employees performing standby duty shall be compensated at the daily rates established below: Monday through Friday $70 Saturday, Sunday, Holidays $100 In the event of a declared City emergency, this section applies to standby assigned in accordance with applicable department policy. Deleted: (current non-travel meal maximum rates as of October 1, 2015 are $15 for breakfast, $16 for Lunch and $28 for dinner) City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 26 of 78 Deleted: December Deleted: 5 Deleted: 18 b) Minimum Call-Out Pay. Employees not otherwise excluded from receiving overtime pay who are called out to perform work shall be compensated for at least two hours' pay from the time of the call-out for each occurrence at the appropriate overtime rate. The two-hour minimum does not apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two-hour minimum will apply. Section 8 - Night Shift Premium. Night Shift premium is paid at a rate of 6% of an employee’s base hourly rate. Night Shift premium is paid only for hours actually worked between 6:00 p.m. and 8:00 a.m. Employees who regularly work night shifts shall receive appropriate night shift premiums, relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation. In order to be eligible for night shift premium, an employee must meet the following criteria: a) Be assigned to a shift on a regular basis which is scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.; b) Or be assigned to work another employee’s regularly assigned shift which is scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.; c) Or if your schedule is temporarily changed under Section 3 of this article which is scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m. The following are excluded from eligibility for night shift premium: a) Overtime hours; b) Alternate work schedules at an employee’s request which overlap with the hours of 6:00 p.m. and 8:00 a.m. Section 9 - Bilingual Premium. $50 per pay period shall be paid to a bilingual employee whose abilities have been determined by the Human Resource Director as qualifying to fill positions requiring bilingual speaking and/or writing ability when the employee regularly performs such duties. The Human Resource Director will determine the number, timing, location and duration of the assignments receiving the additional pay provided herein and which languages are needed. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the designation of positions will be referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. Human Resources will respond to the employee within sixty calendar (60) days after receipt of request. Upon approval by the Human Resources Director, the City is required to arrange for language testing within four (4) months of the approval. Deleted: ¶ Deleted: Night shift premium of 6% of base pay shall be paid to those employees whose standard work schedule falls for work performed between the hours of 6:00 p.m. and 8:00 a.m. A minimum of two hours must be worked between 6 p.m. and 8:00 a.m. to qualify for the premium. This premium shall not apply to an employee whose schedule does not qualify for shift differential who requests an earlier scheduled start time that would otherwise qualify the employee for the premium. A minimum of two hours must be worked between 6 p.m. and 8:00 a.m. to qualify for the premium. Night shift premium does not apply for overtime situations unless overtime is approved to replace an employee who would have otherwise received a night shift premium. Moved (insertion) [2] Moved up [2]: A minimum of two hours must be worked between 6 p.m. and 8:00 a.m. to qualify for the premium. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 27 of 78 Deleted: December Deleted: 5 Deleted: 18 Section 10 - Communications Training Officer (CTO) Compensation. Public Safety Dispatchers and Chief Public Safety Dispatchers identified by Management to work as a Police Officers Standards and Training (POST) certified CTO will be compensated at a premium pay rate of five (5) percent. The premium pay is provided only for those hours spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center. ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES Section 1 - Uniforms. a) The City will provide uniforms, coveralls or shop coats on a weekly basis, or as otherwise furnished, for the following jobs and/or classifications and any positions necessary or required as determined by management. Animal Control Officer Assistant Storekeeper Associate Engineer - Pretreatment Auto Service Mechanic Building Service Person - Lead Building Service Person Cathodic Technician Cement Finisher - Lead Cement Finisher Chemist Community Service Officer (CSO) Electrical Assistant Electrician Apprentice Electrician Lead Engineering Technician III - Refuse Equipment Operator Equipment Operator - Lead Facilities Carpenter Facilities Electrician Facilities Maintenance - Lead Facilities Mechanic Facilities Painter Field Serviceperson Gas System Shop/Field Repairer Gas System Technician I Gas System Technician II Golf Course Equipment Mechanic Golf Course Maintenance Person City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 28 of 78 Deleted: December Deleted: 5 Deleted: 18 Heavy Equipment Operator - Lead Heavy Equipment Operator Industrial Waste Inspector Industrial Waste Investigator Instrumentation Electrician Laboratory Technician, Water Quality Control Line Person/Cable Splicer Line Person/Cable Splicer - Lead Mail Services Specialist Maintenance Mechanic/Maintenance Mechanic, Water Quality Control Mechanical Unit Repairer Meter Reader Meter Reader – Lead Mobile Service Technician Motor Equipment Mechanic - Lead Motor Equipment Mechanic Offset Equipment Operator - Lead Offset Equipment Operator Park Maintenance Assistant Community Services Officer Park Maintenance Person Park Crew - Lead Park Maintenance - Lead Park Ranger Parks & Open Space Assistant Police Records Specialist Refuse Disposal Attendant Senior Chemist Senior Industrial Waste Inspector Senior Industrial Waste Investigator Senior Instrumentation Technician Senior Operator, Water Quality Control Senior Mechanic, Water Quality Control Senior Park Ranger Sprinkler System Repairer Street Maintenance Assistant Storekeeper Storekeeper-Lead Street Sweeper Operator Traffic Control Maintainer - Lead Traffic Control Maintainer II Traffic Control Maintainer I Tree Trimmer-Line Clearer City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 29 of 78 Deleted: December Deleted: 5 Deleted: 18 Tree Maintenance Assistant Tree Trimmer-Line Clearer Assistant Tree Trimmer-Line Clearer - Lead Tree Maintenance Person Truck Driver Utilities Compliance Technician Utility Field Service Representative Utility Installer/Repairer Utility Installer/Repairer Assistant Utility Installer/Repairer – Lead Utility Locator Water Meter Cross Connection Technician Water System Operator - Lead Water System Operator Water System Operator I Water System Operator II Water Quality Control Plant Operator b) Coveralls will be made available for occasional use as needed to protect clothing for the following classifications and any positions necessary or required as determined by management. Building Inspector Building Inspector Specialist Building Service Person - Lead Cable Splicer Assistant Chief Electric Underground Inspector Electrical Assistant Electrician Facilities Mechanic/Painter Heavy Equipment Operator Lineperson/Cable Splicer Park Ranger Senior Park Ranger Utility Field Service Representative Sprinkler System Repairer Utility Installer Assistant Utility Installer/Repairer Utility Installer/Repairer - Lead c) Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 30 of 78 Deleted: December Deleted: 5 Deleted: 18 d) Employee clothing seriously damaged or destroyed in conjunction with an industrial injury will be reasonably replaced by the City. Any other claims alleging City liability may be filed with the City Attorney. e) Except in the Utilities Division, the City will make available, as an alternative to the shirts currently provided under Section 1(a), six (6) cotton polo shirts. Employees in the Utilities Division will be provided with six (6) long-sleeve shirts and two polo shirts. Employees will be responsible for laundering the shirts. Damaged or otherwise unwearable shirts will be returned to the employee’s supervisor and replaced by the City. f) Employees are responsible for laundering Park Ranger and Senior Park Ranger uniforms. g) The City will meet and confer with the Union regarding any mandated changes to uniforms. h) In accordance with California Code of Regulations (C.C.R.) section 571(a) the estimated value of City provided uniforms is $21.28 per pay period. Section 2 - Tool Allowance. a) Mechanics in Equipment Maintenance, Park Maintenance Lead, Motorized Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance of $610 annually upon verification of purchase by the employee. b) Parties will meet and confer to determine if additional classifications require tool allowance. Section 3 - Shoe Allowance. a) Safety Shoes. The City will pay the vendor or reimburse full-time employees up to $400 per fiscal year for the cost of job-related safety shoes upon verification of such purchase by the employee. b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related walking shoes for any positions necessary or required as determined by management including Meter Reader and Meter Reader-Lead, in an amount not to exceed $300.00 per year. A walking shoe is a durable work shoe/boot (non steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water resistant; lightweight and durable; and also provides hard surface cushioning. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 31 of 78 Deleted: December Deleted: 5 Deleted: 18 Section 4 – Certifications. The parties agree to retain the current list of required certifications below. Employees who are required to maintain commercial driver's licenses shall have costs for medical examinations paid by: a) Completing an examination through their PEMHCA provider. After benefits have been paid by the PEMHCA provider, upon presentation of proper documentation, the City will reimburse any remaining costs, or b) Completing an examination at the Workforce Medical clinic or other City designated clinic. Employees may use paid leave for attendance at scheduled medical examinations. Employees shall be permitted to use up to two hours of regular City-paid time for attendance at biannual medical examinations. The scheduling of such time shall be preauthorized by the employee’s supervisor. c) The City will pay special registration and/or certification fees which are required by Management. During the term of this agreement, the City and the Union may, by mutual agreement, review, add or delete classifications and/or required certifications listed below: Classification Requirement Facilities Technician Aquatics Facility Operator Certificate Building Inspector/ Buildg Inspection Specialist Certificate as stated in job description Cathodic Technician Corrosion Technician by the National Assoc. of Corrosion Engineers Engineer Professional Professional Engineer Cert. (for step E) Equip Maint Serv Pers. Forklift Operator Cert. (OSHA-approved) Golf Course Maint Pers. Qualified Applicators' License Heavy Equipment Operator Crane Operation Certificate (Utilities and Electric) Indust. Waste Inspector Backflow Prevention Device Tester Inspector Field Services, Utilities D1 (DOH) Hired before July 1, 2012 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 32 of 78 Deleted: December Deleted: 5 Deleted: 18 Installer/Repairer Series D1 (DOH) Maintenance Mechanic Crane Operator Certification (Water Quality) Mech. Unit Repairer Welding Certificate Motor Equip Mechanic and Lead EMS, ASE Planner, Associate Planner AICP Senior Planner Public Safety Dispatcher POST Basic Dispatcher EMD Public Safety Dispatcher, Lead POST Basic Dispatcher POST Supervision EMD Senior Operator, WQC Grade III Wastewater Treatment Plant Operator Certification Surveyor, PW Licensed Land Surveyor Tree Trimmer/Line Clearer Certified Tree Worker and/or Qualified Line Clearance/Tree Trimmer Cert. (OSHA-approved) Tree Trimmer/Line Clearer-Lead Certified Arborist Utilities Install/Rep series Polyethylene Fusing Cert. Gas Operator Certification (DOT) Veterinarian Technician Animal Health Tech. Certification Water System Operator I Grade DI – Water Distribution Operator Water System Operator II Grade DII – Water Distribution Operator & Grade TII – Water Treatment Operator City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 33 of 78 Deleted: December Deleted: 5 Deleted: 18 Senior, Water System Operator Grade DIII – Water Distribution Operator & Grade TIII Water Treatment Operator WQC Plant Operator I Grade I Wastewater Treatment Operator Certification. WQC Plant Operator II Grade II Wastewater Treatment Operator Certification WQC Plant Operator Trainee Grade I Wastewater Treatment Operator Certification Water Meter Cross- Connection Technician Backflow Prevention Tester Certification d) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver's License in accordance with the California Vehicle Code and applicable laws prescribed by the Department of Transportation. e) Pipeline Welding Assignment. The City provided a 4% premium in base compensation to the Utility Installer-Repairer and the Installer-Repairer Lead positions in 2006 that met DOT certification requirements and are, or were, assigned these duties. The Utility Installer-Repairer and Utility Installer-Repairer Lead positions that fail to maintain current certifications will not receive a 4% premium on their base pay. Positions assigned these duties and designated by Management to receive this premium will not exceed five (5) Utility Installer/Repairer(s) and Installer/Repairer Lead(s). If the certification is required in the job description, certification must be maintained. In accordance with their job description Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shall receive 4% premium to their base pay for pipeline welding. The 4% premium for Maintenance Mechanic- Welding was rolled into base wages. f) Building Inspector and Building Inspector Specialists. Upon successful completion of probationary requirements, the City will pay Building Inspectors and Building Inspector Specialists a one (1) percent of base salary one-time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year or two payments in a career. The City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 34 of 78 Deleted: December Deleted: 5 Deleted: 18 Building Inspector and Building Inspector Specialist Job Descriptions specify current requirements and the Union and City will agree on a list of appropriate certifications eligible for the premium. Premiums will not be paid if certification is not maintained. g) Water and Wastewater System Operator Certification. Employees classified in the following positions: Water Quality Control Plant Operators I and II, Senior Operator Water Quality Control, Laboratory Technician Water Quality Control, Chemist, Senior Chemist, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job Series may be eligible to receive a 1% base pay premium for certifications required by the Department of Health, California Water Environment Association and/or the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (1) percent for one (1) certification that is above those listed in their job description. An employee who qualifies for this payment shall be paid 1% of the employee’s annual base salary once per year. The employee shall be responsible for providing the City with written documentation that the employee has obtained and is maintaining the qualifying certification on an annual basis. Premiums will not be paid if certification is not maintained. Eligible employees should verify certification will qualify for the premium before attempting certification. The Union and the City will update the job descriptions to reflect newly required certifications with no further adjustments to base salary. Payments will not exceed a maximum of one percent per year, and will take effect in the pay period following the verification of certification. All costs for obtaining certifications above what the job description requires will be the responsibility of the employee and may be paid for by using the City’s tuition reimbursement program. h) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification. Training to be provided by the City. i) Crane Certification. A Heavy Equipment Operator, Line Person, Line Person Lead, or Maintenance Mechanic who possesses the legally required certification for operation of any crane will receive an increase of one percent (1%) of their base rate effective upon the ratification and adoption of this MOU by the City Council, or upon attainment of the certification, whichever is later. Heavy Equipment Operator (Electric) must possess a Crane certification regardless of hire date. Any employee hired on or after July 1, 2012 may be required to obtain and possess crane certification. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 35 of 78 Deleted: December Deleted: 5 Deleted: 18 For any other employee hired prior to July 1, 2012 crane certification shall be desirable (not required) except under the following circumstances: a) There are insufficient employees in the classification (Heavy Equipment Operator [exclusive of Electric], Lineperson, Lineperson Lead or Maintenance Mechanic) who possess the certification to perform the work; b) The Manager has sought volunteers and no employee in the classification has volunteered to train for the certification; c) All things being equal, the manager has selected the least senior employee in the classification who is judged by the City most likely to successfully complete the training and obtain crane certification. c) The Manager will allow up to three attempts to pass the crane certification for any employee hired before July 1, 2012 who has been involuntarily assigned to acquire the crane certification. Related training and test costs shall be borne by the City. No employee hired before July 1, 2012 shall be disciplined or discharged for failure to acquire a Crane certification. Section 5 - Weather Protection. The City will provide rainy weather foot protection and one summer hat for the classification of Community Services Officer. ARTICLE X - HOLIDAYS Section 1 - Fixed Holidays. Except as otherwise provided, employees within the representation unit shall have the following fixed holidays with pay: January 1 Third Monday in January (Martin Luther King Day) Third Monday in February Last Monday in May July 4 First Monday in September Second Monday in October Veterans' Day, November 11 Thanksgiving Day Day after Thanksgiving December 25 Either December 24 or December 31 (see below) Deleted: d) City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 36 of 78 Deleted: December Deleted: 5 Deleted: 18 Employees shall be excused with pay for the full work shift on either December 24 or December 31, provided, however, that City facilities remain open with reduced staffing levels, that Management retains the right to determine work schedules, and that neither day be considered a holiday for purposes of premium pay. If employees are not excused pursuant to this provision, one shift of vacation credit will be added to their vacation accrual. In the event that any of the aforementioned days, except for December 24 or December 31, falls on a Sunday, the following Monday shall be considered a holiday. In the event that any of the aforementioned days falls on a Saturday, the preceding Friday shall be considered a holiday. If December 24 and 31 falls on Sunday, then the preceding Friday will be designated for purposes of the holiday. Exceptions to this provision are listed in Appendix E. Section 2 - Pay for Fixed Holidays. a) All employees shall be paid a full day's pay at their regular straight time base hourly rate for all fixed holidays as defined herein. b) An employee must be in a pay status on the workday preceding the holiday to be eligible to be compensated for a holiday. This subsection does not apply to an employee who is on an unpaid medical leave of absence of less than five (5) days. Section 3 - Work on Fixed Holidays. Any employee required to work on a fixed holiday shall be paid time and one-half for such work in addition to his or her regular holiday pay. Work on a fixed holiday beyond the number of hours in a regular shift shall be compensated at double time and one- half. Employees who work a schedule where a regular day off falls on a holiday will accrue the holiday hours they would have normally worked on that day. If an employee has more than four (4) days of holiday time accrued the City will automatically cashout these additional hours. This does not impact the employee’s ability to cashout or transfer to deferred comp holiday hours below the four (4) day threshold. Section 4 - Variations in Work Week. a) An employee whose work schedule requires that his or her regular days off be other than Saturday and/or Sunday shall have an additional day off scheduled by the department in the event a fixed holiday falls during his or her regularly scheduled day off. Every attempt will be made to schedule the day on a mutually agreeable basis. If the day cannot be so scheduled, the employee shall be paid for the day at the straight time base rate. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 37 of 78 Deleted: December Deleted: 5 Deleted: 18 b) Fixed holidays which fall during a vacation period or when an employee is absent because of illness shall not be charged against the employee's vacation or sick leave balance. c) If conditions necessitate a departmental closure impacting employees’ regular schedules, management will work with employees to provide assignments unless the employee chooses to take unpaid time off or use paid time off in the form of vacation, personal business or compensatory time. Section 5 - Floating Days Off Employees hired on or before July 1, 2012 will be credited with 3 floating holidays to be scheduled for use by mutual agreement by employee and supervisor. In no event will FH be convertible to cash or other benefits in lieu of Floating Holidays. Effective at the close of business 6/30/13 one floating holiday will be eliminated. On July 1, 2013 and every July thereafter, employees will be credited with two (2) Floating Holidays to be scheduled in the same manner as noted above. Employees hired after 7/1/12 will not receive any floating holidays. Floating Holidays not used by the end of the fiscal year will be deemed forfeited. ARTICLE XI - VACATIONS Section 1 - Vacation Accruals. Each employee shall be entitled to an annual paid vacation, accrued as follows: a) First day of continuous service through the last day of the fourth (4th) year: 80 hours vacation per year. b) First day of the fifth year of continuous service through the last day of the ninth (9th) year: 120 hours vacation per year. c) First day of the tenth (10th) year of continuous service through the last day of the fourteenth (14th) year: 160 hours vacation per year. d) First day of the fifteenth (15th) year of continuous service through the last day of the nineteenth (19th) year: 180 hours vacation leave per year. e) Twenty (20) or more years: 200 hours vacation leave per year. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 38 of 78 Deleted: December Deleted: 5 Deleted: 18 Employees may accrue up to three times their annual vacation leave without loss of vacation days. In the event the City is unable to schedule vacation and, as a result thereof, the employee is subject to loss of accrued vacation, the City shall extend the vacation accrual limit up to one year, in which time the excess vacation must be scheduled and taken. As long as there is no interference with departmental operations, there shall be no unreasonable restriction of increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave. Section 2 - Holiday Falling During Vacation. In the event a fixed holiday as defined in Article X falls within an employee's vacation period, which would have excused the employee from work (and for which no other compensation is made), an additional workday for such holiday shall be added to the vacation leave. Section 3 - Illness During Vacation. When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. Section 4 - Accrued Vacation Pay for Deceased Employees. An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to his/her estate within thirty days. This proration will be computed at his/her last basic rate of pay. Section 5 - Effect of Extended Military Leave. An employee who interrupts service because of extended military leave shall be compensated for accrued vacation at the time the leave becomes effective. Section 6 - Vacation at Termination. Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Section 7 - Vacation Cash Out. Once each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours, to a maximum of 120 hours, provided that the employee has taken 80 hours of vacation in the previous 12 months. 1. To be eligible for cash out vacation, employees must pre-elect the number of vacation hours they will cash out during the following calendar year up to maximum of 120 hours, prior to the start of that calendar year. The election will apply only to vacation hours accrued in the next tax year and eligible for cash out. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 39 of 78 Deleted: December Deleted: 5 Deleted: 18 2. The election to cash out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash out vacation hours must cash out the number of accrued hours pre-designated on the election form provided by the City. 3. Employees who do not pre-designate or decline a cash out amount by the annual deadline established by the City will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash out vacation hours in the next tax year. 4. Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to Payroll. Payroll will complete the cash out upon request, provided the requested cash out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash out is not available at the time of cash out request, the maximum available will be paid. 5. For employees who have not requested payment of the elected cash out amount by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after the payroll date including November 1. ARTICLE XII - LEAVE PROVISIONS Section 1 - Sick Leave. a) The City shall provide each employee with paid sick leave, earned on a daily basis and computed at the rate of 96 hours per year, with no limits on amounts that may be accumulated, except that for employees hired after July 1, 1983, sick leave accrual accumulation shall be limited to 1,000 hours and subsections (a)(1) and (a)(2), shall not apply. Payment for accumulated sick leave at termination shall be made only in the following circumstances: 1) Eligible employees who leave the municipal service or who die while employed and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their base hourly rate of pay at termination. 2) Full sick leave accrual will be paid in the event of termination due to disability. b) Use of Sick Leave. Sick leave shall be allowed and used in cases of actual personal sickness or disability, medical or dental treatment, or as authorized for personal City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 40 of 78 Deleted: December Deleted: 5 Deleted: 18 business. Up to nine days sick leave per year may be used for illness in the immediate family, including registered domestic partner. A new employee may, if necessary, use up to forty-eight (48) hours of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. c) An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her option, choose either to receive the long term disability benefits or to utilize the remainder of his/her accrued sick leave prior to applying for long-term disability benefits. d) Sick leave will not be granted for illness occurring during any leave of absence unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. e) Return to Work With Limited Duty. Upon approval of department management and the City Risk Manager, an employee may return to work for doctor-approved limited duty. Approval for return to work shall be based upon department ability to provide work consistent with medical limitations, the location of the work assignment, and the length of time of the limitations. The City doctor may be consulted in determining work limitations. f) If an employee’s illness results in an absence from work for more than three (3) consecutive work days or twenty-four (24) continuous hours, whichever is greater, a doctor’s certificate or other proof of illness may be required. The department head or designee may require a doctor’s certificate or other proof of illness when there is reasonable cause of misuse. g) Leave Committee During the term of this Agreement, upon request by either party, the parties will meet with the goal of developing alternate leave models, such as “Paid Time Off” or other similar benefits. Any changes implemented during the term of this agreement must be by mutual agreement only. Section 2 - Bereavement Leave. Leave of absence with pay of three days shall be granted an employee by the head of his or her department in the event of death in the employee's immediate family, which is defined for the purposes of this section as wife, husband, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, mother, step-mother, mother-in-law, father, step-father, father-in-law, brother, brother-in-law, Deleted: <#>Sick Leave Incentive/Wellness Committee¶ ¶ During the term of the MOA, the City and SEIU 521 shall hold a Labor Management Committee Meeting to discuss unused sick leave incentives and wellness program ideas. This Committee will meet at least three (3) times within the first year. The Committee shall be composed of labor representatives, not to exceed five (5) representatives and (5) City representatives.¶ City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 41 of 78 Deleted: December Deleted: 5 Deleted: 18 step-brother, sister, step-sister, sister in- law, grandmother, grandmother-in-law, grandfather, grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Request for leave with pay in excess of three (3) days shall be subject to the written approval of the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee's need for additional time. Section 3 - Military Leave. The provisions of the Military and Veterans' Code of the State of California shall govern the granting of military leaves of absence and the rights of employees returning from such leaves. Consistent with the Military and Veterans Code, the City of Palo Alto shall pay employees in SEIU bargaining unit their regular salary, salary differential, and all available benefits for up to thirty days per calendar year. Section 4 - Leave Without Pay. a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. b) Family Leave. Family leave will be granted in accordance with applicable state and federal law. c) Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency, Union business or when such absences would not be contrary to the best interest of the City. Non-disability prenatal leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require that employee to use paid leave credits in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 5 - Jury Duty and Subpoenas. Employees required to report for jury duty or to answer subpoenas as a witness in behalf of the State of California or any of its agencies shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received from such duties other than mileage or subsistence allowances within thirty (30) days from the City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 42 of 78 Deleted: December Deleted: 5 Deleted: 18 termination of jury service. When an employee returns to complete a regular shift following time served on jury duty or as a witness, such time falling within the work shift shall be considered as time worked for purposes of shift completion and overtime computation. In determining whether or not an employee shall return to his or her regular shift following performance of the duties, reasonable consideration shall be given to such factors as travel time and a period of rest. When a combination of City work time and jury duty equals 14 or more hours in the 24-hour period immediately before the employee's shift starting time, the employee will be allowed a rest period of nine hours. Any portion of the rest period falling within the employee's work shift will be considered as hours worked and compensated at the straight time rate. This provision does not apply to conditions of bona fide emergency. Bona fide emergency conditions are conditions involving real or potential loss of service or property or personal danger. Section 6 - Time Off to Vote. Time off with pay to vote in any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 7 - Disapproval of Leave of Absence. In case of disapproval of extension, revocation or cancellation of an existing leave of absence, notice shall be sent by certified mail, return receipt requested, to the employee stating the date of such action, the reason and a specific date to return to work, which is not less than five working days from date indicated on return receipt. Section 8 - Personal Business Leave Chargeable to Sick Leave. All employees shall be granted up to thirty (30) hours personal business leave per calendar year, chargeable to sick leave. The employee need not disclose the reason for the personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management, and such approval shall not unreasonably be denied. Section 9 - Return to Assignment. The department shall make every effort to ensure that employees resuming work following a leave pursuant to Sections 1- 8 shall be returned to the assignment, shift, and/or work location held immediately prior to the leave. If the employee cannot be so assigned, he or she shall, upon request, be granted a meeting with department management to discuss the reasons for the change. Upon request, the employee shall be afforded Union representation at such a meeting. ARTICLE XIII - WORKERS' COMPENSATION INSURANCE Section 1 - Industrial Temporary Disability. Deleted: twenty Deleted: 2 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 43 of 78 Deleted: December Deleted: 5 Deleted: 18 a) While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall be paid full base salary for a period of not to exceed fifty-seven (57) calendar days, unless hospitalized, in which case employees shall be paid full base salary for a period not to exceed sixty (60) days from date of injury. b) For any temporary disability continuing beyond the time limits set forth in (a) above, employees shall be paid two-thirds (66 2/3%) of their full base salary at the time of injury for the duration of such temporary disability in conformance with the State law. c) During the period of temporary disability, an employee's eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees. In case of Subsection (a) above, the employee will continue to accrue vacation and sick leave benefits. In the case of Subsection (b), sick leave and vacation benefits shall not be accrued. Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. Vocational Rehabilitation will be made available to employees who have suffered permanent disability as a result of an injury or illness sustained in the course and scope of employment before 1/1/04. For injuries on or after 1/1/04 qualified employees are entitled to supplemental job displacement vouchers in accordance with the California Labor Code, Division 1, Department of Industrial Relations and Division 4, Workers’ Compensation and Insurance, the Americans with Disabilities Act (ADA), and the City of Palo Alto's Workers’ Compensation Program. ARTICLE XIV - BENEFIT PROGRAMS Section 1 - Health Plan. a) Active Employees During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Effective January 1, 2019: • Employee only: $804 • Employee plus one: $1,606 • Employee Family: $2,088 Effective January 1, 2020: City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 44 of 78 Deleted: December Deleted: 5 Deleted: 18 • Employee only: $840 • Employee plus one: $1,680 • Employee Family: $2,180 Effective January 1, 2021, the City will increase its maximum contribution by 50% of average of the increases to Kaiser and PERS Choice. Provided however, that the total increase of the maximum City contribution shall not exceed 4%. The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. PEMHCA minimum changes per statutory determination and has historically been increased by $3 dollars each year. Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the amount listed in the Maximum City Contribution described above. b) Health Plan Coverage for Future Retirees Hired Before January 1, 2005. Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees’ Medical and Hospital Care Act. Effective 1/1/07 the City’s monthly employer contribution for each retiree and their eligible family members, as defined by the CalPERS Health Benefits Program, shall be the amount necessary to pay for the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered to the SEIU employee (among the existing array of plans). However, the City contribution for an employee hired before January 1, 2005 who retires on or after April 1, 2011 the City contribution for the retiree and their eligible family members, as defined by the CalPERS Health Benefits Program, shall be the same contribution amount it makes from time to time for active City employees. The City provided active unit employees who were hired before January 1, 2005 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. c) PERS – Health Benefit Vesting For Future Retirees Effective January 1, 2005 or any existing employee who opts into this vesting schedule. Deleted: ¶ Deleted: Medical¶ Premium¶ Category ... Deleted: Effective with the first pay period including January 1, 2015, the Deleted: * Deleted: “Total Deleted: ” columns Deleted: Effective upon ratification and adoption of this Agreement, t Deleted: shall City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 45 of 78 Deleted: December Deleted: 5 Deleted: 18 The CalPERS vesting schedule set forth in Government Code section 22893 will apply to all SEIU employees hired on or after January 1, 2005 or any existing employees who opt into this vesting schedule. Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional year of service credit will increase the employer contribution percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for eligible family members, as defined by the CalPERS Health Benefits Program, will be 90% of the specified employer contribution. The City of Palo Alto's health premium contribution will be the minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. d) Retiree Health Committee During the term of this agreement the parties will maintain a Retiree Health Committee. The Union shall appoint two (2) Union members (and one Union staff person) to serve on this committee who shall receive reasonable release time to attend Retiree Health Committee meetings. Changes to this section during the term of this Agreement will be by mutual agreement only. The parties agree that Retiree Health Committee meetings may be attended by representatives of other City labor groups. e) Coverage for Domestic Partners. Domestic Partnership Registered with the California Secretary of State. Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Registered with the California Secretary of State. Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for a stipend of two hundred and eighty four dollars ($284.00) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for reimbursement. f) Alternative Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any other non-City of Palo Alto employer- sponsored or association-sponsored group medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical plan insurance and receive cash payments in the amount of two hundred eighty-four dollars ($284) for each month City coverage is waived. Deleted: Agreement Deleted: e City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 46 of 78 Deleted: December Deleted: 5 Deleted: 18 Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or domestic partner and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284.00) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the employee’s failure to notify the City of a change in status. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. Section 2 - Dental Plan. a) The City shall continue to provide a self-funded dental program for the benefit of City employees and their eligible dependents. The City shall pay 100% of the required premiums for the program, except that benefits for regular part-time employees will be prorated as follows: Employees hired after January 1, 2005, who will work less than full time, will receive prorated premium costs for dental benefits in accordance with his/her percentage of a full-time work schedule. Part-time employees currently receiving full benefits will not be impacted. b) The City’s Dental Plan provides the following: City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 47 of 78 Deleted: December Deleted: 5 Deleted: 18 • Maximum Benefits per Calendar Year $2,000 per person. c) Effective July 1, 2001, dental implants in conjunction with one or more missing natural teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). d) Effective 1/1/07 the City will add composite (tooth colored) fillings in dental plan posterior teeth. e) Effective 1/1/07 the City will pay up to $2000.00 for Orthodontia coverage. Section 3 - Vision Care. The City shall continue to provide a self-funded vision care program for the benefit of City employees and their dependents. The City shall pay 100% of the required premiums for the program. The benefits of the vision care program shall continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan. Vision benefits for regular part-time employees hired or assigned to a part-time schedule will be prorated in accordance with his/her percentage of a full- time work schedule. Section 4 - Life Insurance. The City agrees to continue the Basic and Supplemental life insurance plan as currently in effect for the term of this Memorandum of Agreement. Section 5 – Long Term Disability Insurance. The City shall continue the long term disability insurance plan currently in effect for the term of this Memorandum of Agreement. For Plan A, the benefit is 66 and 2/3% of pre-disability earnings to the maximum benefit level of $4000.00 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $6,000 of monthly salary, less a credit of $11.17 per month to be paid by the City. For Plan B, the benefit is 60% of pre-disability earnings up to the maximum benefit level of $1800 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $2000 of monthly salary for Plan B. The City will pay premiums in excess thereof. Section 6 - Effective Date of Coverage for New Employees. For newly-hired regular employees, elected coverage will begin on the first day of the month following date of hire. Section 7 - Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 48 of 78 Deleted: December Deleted: 5 Deleted: 18 employee, but not both) and dependent children, if any, shall be covered by only one spouse. Section 8 - Deferred Compensation. The City shall continue to make available a Section 457 Deferred Compensation Plan to SEIU employees and will insure reasonable access to Deferred Compensation representatives for all interested employees. Section 9 – Dependent Care Assistance Program and Medical Flexible Spending Accounts. The City shall continue to provide a Dependent Care Assistance Program (DCAP) and Medical Flexible Spending Accounts (FSA) for employees that comply with Section 125 of the Internal Revenue Code. Calendar year limits are set by the IRS. All matters related to the FSA shall be excluded from the grievance requirements of this MOA (per side letter agreed to in 2011). a) Dependent Care Assistance Program: Can be used to pay for qualified day care (or dependent care) expenses with pre-tax dollars. b) Medical FSA: Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. The City will deduct the annual administrative fee through a payroll deduction (currently $4 as of 2015) or if the employee has unused FSA dollars from the prior calendar year, the City will apply those dollars to cover the administrative fee. Section 10 - Training Programs. a) Employees assigned by the City to attend meetings, workshops, or conventions of their professional or technical associations shall have their dues and reasonable expenses paid by departmental funds and shall be allowed to attend such workshops, meetings, and conventions on paid City time. b) City will reimburse for travel, meals and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee’s skills. Per City Policy and Procedure 1-02, the Pre-Travel Authorization Form should indicate expenses that will be paid. ARTICLE XV – RETIREMENT Section 1 - PERS Continuation. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 49 of 78 Deleted: December Deleted: 5 Deleted: 18 a) Pension Group A: 2.7% @ 55. The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 for employees hired before July 17, 2010. The Parties acknowledge that employees under this formula hired before July 17, 2010 are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code Section 20042. b) Pension Group B: 2.0% @ 60 – (Single Highest Year). For employees hired on or after July 17, 2010 and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Classic” CalPERS members), but before the adoption of the modified 2% at 60 formula described below, whichever is later, the City will continue to provide the 2% at 60 retirement formula (“2% at 60”). The Parties acknowledge that employees under the existing 2% at 60 pension formula are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code section 20042. c) Pension Group C: 2.0% @ 60 – (3 Highest Years). The City shall further amend its contract with CalPERS to provide miscellaneous “Classic” CalPERS members hired on or after August 1, 2013 with the CalPERS retirement formula two percent (2.0%) of final compensation at age sixty (60) with a final compensation calculation, for pension determination purposes, based on the employee’s three consecutive highest years of compensation earnable, as provided by Government Code section 20037. The City may delay the adoption or implementation of the foregoing amendment to the extent it deems such delay necessary to accommodate legal and administrative requirements. In such event, employees hired between and including August 1, 2013 and the day before the amendment’s implementation date will be placed in the 2% of final compensation at age 60 formula with single highest year earnable compensation as described above. d) Pension Group D: 2% @ 62. Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two percent at age 62 (2%@62) retirement formula with a three year final compensation period. Section 2 - Employee Share. Effective with the first pay period including July 1, 2012 employees in Pension Groups A, B and C described in Section 1 above shall pay 8% if enrolled in the 2.7%@55 benefit or 7% if enrolled in the 2%@60 benefit. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 50 of 78 Deleted: December Deleted: 5 Deleted: 18 Employees in Pension Group D shall pay the employee contribution required by the Public Employees’ Pension Reform Act, calculated at fifty percent (50%) of the normal cost. Section 3. Employer Share. Effective the first full pay period following December 1st, 2017, employees (Groups A-D) shall pay one percent (1.0%) of their salary toward the employer cost of retirement (in addition to the employee share) in accordance with Section 20516 of the California Government Code. Effective the first full pay period including December 1, 2020, employees in this unit (Groups A-D) shall pay an additional 1% of their salary toward the employer cost of retirement for a total of 2% (in addition to the employee share) contribution toward the employer share. This will result in SEIU employees in Groups A-D paying a total of two (2) percent of the employer share (in addition to the employee share) effective the first full pay period including December 1st, 2020. ARTICLE XVI - COMMUTE INCENTIVES AND PARKING Section 1 - Commute Incentive. It is the City’s interest to reduce single occupancy vehicle trips to the extent possible in order to address current traffic and environmental challenges. During the term of this agreement, the parties shall meet and confer on changes to the City’s commute incentive and parking program adopted by the City Council. Eligible employees may voluntarily elect one of the following commute incentives: a. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. b. Carpool. The City will provide $30 per month (taxable income) to each eligible employee in a carpool for 60% or more of their scheduled work days per month with two or more people. c. Bicycle. The City will provide $20 per month to eligible employees who ride a bicycle to work. This payment is available through the CCD web site in the Deleted: Effective the first full pay period following December 1st, 2016, each unit member in Groups A-D shall pay one-half percent (0.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code.¶ Deleted: each unit member Deleted: in Deleted: an additional Deleted: -half Deleted: 0.5 Deleted: one Deleted: 1 Deleted: of 8% Deleted: y Deleted: 17 Deleted: ¶ Pension Group ... Deleted: Section 4 - Utility Rates Discount. Employees who retire and were employed by the City on or before April 1, 1977, and spouses of deceased employees who were employed by the City on or before April 1, 1977, shall continue reductions in utility rates. All retired employees and spouses of deceased employees with documentation showing retiree status from the City shall also have residential privileges at City libraries, city parks, golf course and swimming pools. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 51 of 78 Deleted: December Deleted: 5 Deleted: 18 form of a special Commuter Check (tax free) for bike equipment, gear or repairs. This benefit cannot be combined with other commute benefits. d. Walk. The City will provide $20 per month (taxable income) to eligible employees who walk to work 60% or more of their scheduled work days. e. Transit or vanpool users: Tax-free incentives up to the IRS limit (currently $255/month) are available through the Commuter Check Direct (CCD) web site for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. f. Go Pass. The Go Pass program will offer civic center and other downtown- based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in all zones seven days per week. g. The City and Union agree to meet in Labor Management Committee to assess and improve the application of the telecommuting policy and option for employees. The deadline for registering with CCD and placing an online order is 8:59 p.m. on the 7th of each month, for the next month’s benefit. For example, employees wishing to order a transit pass by June must place their online orders with CCD by May 7th. Section 2 – Parking Lot Security – Municipal Service Center. The City will provide fenced and locked parking facilities for Municipal Service Center employees. Procedures will be established for entering and leaving the parking facilities. Section 3 – Bicycle Lockers and Motorcycle Parking. The City will provide bicycle lockers and motorcycle parking areas for City employees at mutually agreeable work locations. ARTICLE XVII - PHYSICAL EXAMINATIONS If any non-probationary employee who is required to have a City-provided physical examination not related to workers' compensation programs disagrees with the findings of the City-sponsored physician, he/she may consult with his/her own physician and, if his/her private physician's report conflicts with that of the City physician in terms of ability to work at his/her regular job, then he/she may request an evaluation of his/her problem through a third physician mutually agreed upon by the employee and the City. Cost for such examination will be equally shared and the decision of this physician concerning the continuing ability of the employee to perform his/her work in his/her regular job without exposing himself/herself to further injury as a result of his/her condition shall be the basis for returning the employee to his/her regular work. Deleted: f. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 52 of 78 Deleted: December Deleted: 5 Deleted: 18 ARTICLE XVIII – SAFETY Section 1 - Health and Safety Provisions. The City shall furnish and use safety devices and safeguards and shall adopt use practices, means, methods, operations and processes which are reasonably adequate to render such employment and place of employment safe, in conformance with applicable safety regulations under the State Labor and Administrative Code sections. The City shall not require or permit any employee to go to or be in any employment or place of employment which is not safe. Section 2 - Union Cooperation. Union will cooperate with the City by encouraging all employees to perform their work in a safe manner. Section 3 - Safety Committees and Disputes. Safety committees composed of Management and Union stewards in the below listed organizations will meet no less than six (6) times annually to discuss safety practices, methods of reducing hazards, and to conduct safety training. This shall in no way remove the basic responsibility of safety from Management nor shall it in any way alter the responsibility of the employee to report unsafe conditions directly and immediately to his or her supervisor. Community Services Public Works Water-Gas-Wastewater Field Operations Electric Field Operations Water Quality Control a) A ten-member Citywide Union/Management safety committee with equal Union and Management membership will meet upon call to review safety and occupational health standards and practices, discuss overall City safety and health problems, and to act as an advisory group to the departmental safety committees. The committee shall review all departmental safety programs and recommend change where necessary. b) In cases of dispute over safe working conditions the employee will first report such unsafe conditions to his or her supervisor and every attempt will be made to rectify the problem at this level. The employee may contact his or her steward to assist in the resolution of the dispute. If the problem cannot be resolved the Risk Manager will be contacted and the problem will be addressed through the interpretation of the basic safety rules and regulations. Should the problem not be resolved at this step, the grievance procedure will be utilized. Safety grievances shall be submitted at Step III. Deleted: <#>A committee composed of one facilities Management representative, one building inspection representative, two Union representatives, and the City Risk Manager will meet as needed concerning safety matters of the Civic Center.¶ City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 53 of 78 Deleted: December Deleted: 5 Deleted: 18 c) The City will continue employee workplace evaluations in compliance with CalOsha, Title 8, section 5110. ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE Section 1 - General Provisions. The City and the Union recognize that early settlement of grievance or appeal of disciplinary actions is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or appeal of disciplinary action, or Union grievances as provided for below. In presenting a grievance or appeal of disciplinary action, the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Release time for investigation and processing a grievance or appeal of disciplinary action is designated in Article IV of this Memorandum of Agreement (MOA). Section 2 – Definitions. a) Grievance means an unresolved complaint or dispute regarding the application or interpretation of rules, regulations, policies, procedures, Memorandum of Agreement or City ordinances of resolution, relating to terms or conditions of employment, wages or fringe benefits, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance or appeal of disciplinary action procedure. b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action against an employee covered by this Memorandum of Agreement. Discipline is defined as suspensions without pay, reductions in pay, demotion or discharge. Reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not considered discipline. Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure. a) An aggrieved employee may be represented by the Union or may represent himself/herself in preparing and presenting a grievance or appeal of disciplinary action at any level of review. Grievances or appeal of disciplinary action may also be presented by a group of employees. No grievance or appeal of disciplinary action settlement may be made in violation of an existing merit rule or memorandum of agreement. The Union will be notified prior to the implementation of any settlement made which affects the rights or conditions of other employees represented by the Deleted: <#>In response to recommendations from the Ergonomics Safety Committee, management will develop training workshops which include information on safe ergonomic work practices. Such workshops will be given at least two times per year. Upon release of Cal/OSHA regulations covering safe workplace ergonomic standards, management will immediately adopt such standards as party of its Injury Prevention Program.¶ Deleted: ergonomic Deleted: Ergonomic Standard City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 54 of 78 Deleted: December Deleted: 5 Deleted: 18 Union. The Union and the Steward will be copied on all written representation unit grievance or appeal of disciplinary action decisions. b) An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance or appeal of disciplinary action. Requests for release time to prepare grievance or appeal of disciplinary action shall be made in accordance with the provisions of Article IV, Section 3. c) Beginning with the third step of the grievance or appeal of disciplinary action procedure, the Chief Steward or Alternate Chief Steward may assist in presenting a grievance or appeal of disciplinary action and may be present at all Step III, and IV grievance or appeal of disciplinary action hearings. d) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Union and the reviewer concerned. e) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step. f) The grievance or appeal of disciplinary action may be considered settled if the decision of any step is not appealed within the specified time limit. g) If appropriate, the aggrieved employee(s) or the Union and the department head may mutually agree, in writing, to waive Step I and/or Step II of the grievance or appeal of disciplinary action procedure. h) Grievances or appeal of disciplinary action shall be made in writing and submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The written grievance or appeal of disciplinary action shall contain clear, factual and concise language, including: (1) the name of the grievant; (2) a statement of the facts upon which the grievance or appeal of disciplinary action is based, including relevant dates, times and places; (3) specific provisions of this Agreement or specific City rules, policies, or procedures which the grievance or appeal of disciplinary action alleges has been violated; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance or appeal of disciplinary action. i) Any retroactivity on monetary grievances or appeal of disciplinary action shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance or appeal of disciplinary action was filed in writing. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 55 of 78 Deleted: December Deleted: 5 Deleted: 18 j) If the grievance is filed by more than one employee in the bargaining unit, the Union may, at its option, convert it to a Union grievance after Step II of the grievance procedure. The Union may also file a grievance in those instances when, under this Memorandum of Agreement, a Union right not directly related to an individual employee becomes the subject of dispute. Union grievances shall comply with all of the foregoing provisions and procedures. k) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays. l) If a mutually agreed solution is reached during any step of this grievance or appeal of disciplinary action procedure, the agreement shall be placed in writing and signed by the City and the grievant or union. m) Upon request of either party, meetings to discuss the grievance or appeal of disciplinary action shall be held at any step in the grievance or appeal of disciplinary action procedure. n) The Parties may mutually agree in writing to an alternate method(s) of delivery for any communication for any notices required pursuant to Article XIX, Grievance Procedure, of a grievance or appeal of disciplinary action. Such agreement shall list the designated representative(s) for each party and the appropriate contact information for each Party, and describe the agreed-upon method(s) of communication. All designated representatives shall be copied on any communications. On all transmissions that are intended to conform to a time limit, the sender shall retain proof that the transmission was sent within that limit (for example, confirmation of electronic mail transmission or record of successful fax transmission) in the sender’s file for production if a dispute arises over existence or timing of the transmission. Either Party may designate new representatives or terminate an alternate delivery agreement under this section by providing written notice, which shall be effective immediately, to the other. Section 4 - Grievance and Appeal Procedure. Step I. Informal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance or appeal of disciplinary action is based the aggrieved employee shall present the grievance action to his or her immediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 56 of 78 Deleted: December Deleted: 5 Deleted: 18 Step II. If the grievance is not resolved through the informal discussion in Step 1 or the employee wishes to appeal disciplinary action taken against him/her in the case of a grievance, the employee will reduce the grievance or appeal of disciplinary action to writing and submit copies to the Department head or his or her designee within fifteen (15) working days of the discussion with the immediate supervisor or within fifteen (15) working days from the receipt of a final disciplinary action. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance or appeal of disciplinary action to review the matter and prepare a written statement. Step III. If the grievance or appeal of disciplinary action is not resolved and/or the aggrieved employee is not satisfied with the Step II decision, the grievant or disciplined employee may appeal to the Human Resource Director or his or her designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance or appeal of disciplinary action, the Department Head’s decision at Step II, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step IV. If the grievance or appeal of disciplinary action is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance or appeal of disciplinary action through appeal to the City Manager or through appeal to final and binding arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Union approval. All Step IV appeals must be filed in writing at the Human Resources Department within fifteen (15) working days of receipt of the Human Resource Director’s decision at Step 3. If the grievant or appellant elects final and binding resolution by the City Manager, the City Manager will choose the methods he or she considers appropriate to review and settle the grievance or appeal of disciplinary action. The City Manager shall render a written decision to all parties directly involved within fifteen (15) working days after receiving the grievant/appellant’s appeal. If the grievant/appellant elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator within 90 days from the date of receipt of the written request for appeal. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. Deleted: Office City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 57 of 78 Deleted: December Deleted: 5 Deleted: 18 The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances or appeal of disciplinary action appealed to the arbitrator. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum Of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in Article XX and without regard to the merits of the grievance or appeal of disciplinary action. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Union. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION The City has the right to discipline, demote, or discharge employees for cause. Non- probationary employees whose work or conduct is unsatisfactory but not sufficiently deficient to warrant discipline, demotion, or discharge will be given a written notification of unsatisfactory work or conduct and an opportunity to improve. Failure to correct deficiencies and improve to meet standards may result in discipline, demotion, or discharge. Discipline is defined as suspensions without pay, reduction in pay, demotion, or discharge. Coaching, mentoring, verbal counseling, written counseling, reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not discipline and shall not be subject to the requirements of this Article. Section 1 - Preliminary Notice of Discipline. Prior to imposing disciplinary action, a supervisor shall provide an employee with preliminary written notice of the proposed disciplinary action. The notice of proposed disciplinary action must be in writing and served on the employee in person or by registered mail or Fed-Ex. The notice of disciplinary action shall include: a) Statement of the violations upon which the disciplinary action is based; City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 58 of 78 Deleted: December Deleted: 5 Deleted: 18 b) Intended effective date of the action; c) Statement of the cause thereof; d) Statement in ordinary and concise language of the act or the omissions upon which the causes are based; e) Copies of any documents or other written materials upon which the disciplinary action was fully or in part based. f) Statement advising the employee of his/her right to appeal from such action, and the right to union representation and a statement that in order to exercise your rights to union representation the employee may contact their SEIU representative or their steward. g) The date and location of the Skelly meeting and the name of the Skelly Officer Section 2 - Skelly Meeting. The employee shall have the right to respond informally to the charges either verbally or in writing before the discipline is imposed. The employee shall have fifteen (15) working days from receipt of the notice to request this pre- disciplinary administrative review. The employee may request a reasonable extension of the time to respond for justifiable reasons. The Skelly meeting to listen to the verbal responses shall be scheduled with a City representative who is not the manager recommending the discipline (the “Skelly Officer”). The Skelly Officer shall render a final written decision (the “post-Skelly decision”) within fifteen (15) working days of receiving the employee’s response, if any, and shall deliver the post-Skelly decision to the employee by personal delivery or registered mail. The Skelly Officer may sustain, modify, or overturn the recommended disciplinary action. If the Skelly Officer sustains or modifies the disciplinary action, the action may be imposed after the post-Skelly decision is delivered to the employee. Section 3 – Appeals. Appeals of disciplinary action should be processed through the procedures outlined in Steps 2-4 of the grievance appeal of disciplinary action procedure (Article XIX, Section 4.) ARTICLE XXI - NO ABROGATION OF RIGHTS The parties acknowledge that Management rights as indicated in Section 1207D of the Merit System Rules and Regulations and all applicable State laws are neither abrogated nor made subject to negotiation by adoption of this MOA. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 59 of 78 Deleted: December Deleted: 5 Deleted: 18 ARTICLE XXII - OUTSIDE EMPLOYMENT The provisions of Article 4.7 of the Government Code of the State of California will govern the determination of incompatible outside employment. ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS The City agrees that it will not lock out employees, and the Union agrees that it will not engage in any concerted work stoppage or slowdown during the term of this MOA. An employee shall not have the right to recognize the picket line of a labor organization when performing duties of an emergency nature. ARTICLE XXIV - PROVISIONS OF THE LAW Section 1 - Conformity and Separability of Provisions. This Memorandum of Agreement is subject to all current and future applicable Federal and State laws and Federal and State regulations and the Charter of the City of Palo Alto and the Constitution of the State of California. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 2 - Merit Rules and Regulations. This Memorandum of Agreement shall become a part of the City of Palo Alto Merit Rules and Regulations applying to employees assigned to classifications in the SEIU unit. As applied to employees assigned to the SEIU unit, this Memorandum of Agreement shall prevail over any conflicting Merit Rules and Regulations. Section 3 - Resolution. The City and the Union agree by signing this Memorandum of Agreement that the wages, hours, rights and working conditions contained herein shall be continued in full force during the term of this Memorandum of Agreement except as otherwise provided for in the Memorandum of Agreement and shall be binding on both the City and the Union upon ratification by the Council of the City of Palo Alto and upon ratification by Union membership. ARTICLE XXV - TUITION REIMBURSEMENT The City shall fund a Tuition and Student Loan Reimbursement Program for use by employees in the unit. This program will provide reimbursement to eligible SEIU Deleted: non-probationary Deleted: with at least one (1) year of full time service with the City City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 60 of 78 Deleted: December Deleted: 5 Deleted: 18 members for successful completion of undergraduate, graduate level courses, collegiate level certification courses or any other pre-approved training related to employment opportunities with the City. The City will fund up to $100,000 for each fiscal year of the term of this MOU. The maximum reimbursement will be one thousand five hundred dollars ($1,500) total per employee for each fiscal year of this MOU. Monies expended on this program will be subject to appropriate IRS regulations. Requests for reimbursement are on a first come first serve basis and must be submitted within thirty (30) calendar days of the end of the fiscal year to be allocated to the fiscal year. The Tuition Reimbursement will be provided if the following conditions are met: a. Courses, classes or trainings must be pre-approved as job related by the division head or designee prior to the start date. Employees may appeal a denial to the Human Resources Director or designee within 5 working days of receipt of denial, whose decision shall be final. b. Eligible expenses include required textbooks, tuition, fees, lab fees and equipment, but will not include parking fees or health fees related to enrollment. c. Employees must attain a final grace of “C” or better for both undergraduate and graduate work. Courses providing a “pass/fail” must achieve a “pass” to qualify for reimbursement. Ungraded courses, classes or trainings will qualify for reimbursement based on proof of successful completion. d. Requests for reimbursement shall be submitted in accordance with the procedures developed by the City. A request for reimbursement will not be considered submitted until it includes the relevant receipts and proof that the necessary grade or successful completion was earned. e. Courses must be taken on the employee’s off duty hours, unless prior approval is received from the employee’s supervisor. Student Loan Reimbursement conditions: a. Employees must have an active student loan in good standing. b. Employees must successfully complete the secondary education with which the student loan was incurred, and must provide proof of successful graduation or completion. c. Requests for reimbursement shall be submitted in accordance with the procedures developed by the City. A request for reimbursement will not be considered submitted until it includes proof of payment towards the employee’s student loan within the eligible fiscal year. ARTICLE XXVI - COST REDUCTION PROGRAMS Deleted: or Deleted: or Deleted: ¶ ¶ Deleted: r Deleted: of the course Deleted: undergraduate and graduate level Deleted: be Deleted: <#>Requests for reimbursement must be submitted within thirty (30) calendar days of the end of the fiscal year to be allocated to the fiscal year. ¶ <#>Monies expended on tuition reimbursement will be subject to appropriate IRS regulations. ¶ Deleted: <#>The City may require reimbursement from the employee prior to completion of twelve months of service following receipt of the reimbursement. Reimbursement to the City will be to the extent allowable under law. ¶ Deleted: ¶ Deleted: This program is intended to provide educational and career development opportunities including licenses and certifications that are job related, and shall not replace other training currently offered by the City. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 61 of 78 Deleted: December Deleted: 5 Deleted: 18 During the term of this agreement, the Union will aggressively assist Management in developing cost reduction programs. Such programs may include voluntary reduced hours/pay after this concept is studied by Management, and with such application as may be approved by Management. ARTICLE XXVII – TERM The Term of this Memorandum of Agreement shall commence on January 1, 2019 and shall expire on December 31, 2021. The Parties agree that they will commence negotiations over a successor to this Memorandum of Agreement no later than one hundred eighty (180) days (July 2, 2021) before its expiration. If, at the time this Memorandum of Agreement would otherwise expire, the parties are continuing to negotiate a successor Memorandum of Agreement, upon mutual agreement the terms and conditions of this Memorandum will continue in effect. Deleted: December 1, 2015 Deleted: 18 Deleted: 18 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 62 of 78 Deleted: December Deleted: 5 Deleted: 18 EXECUTED: FOR LOCAL 521, SEIU, CTW: FOR CITY OF PALO ALTO: _______________________________ _______________________________ Jim Philliou, SEIU Chief Negotiator Ed Shikada, City Manager __ Margaret Adkins, Chapter Chair Rumi Portillo, Human Resources Director __ Sandra Floyd, SEIU Worksite Organizer Nicholas Raisch, Chief Negotiator _____ __ Ratu Serumalini Tori Anthony __ Alison de Geus Grace Castor ___ Alicia Spotwood Jon Hospitalier __________ Martha Walters Richard Baptist __________ Joseph Luttrell Kristen O’Kane __________ George Parry Gayathri Kanth Lynn Krug Kyle Carbajal Gus Ibarra Alex Gonzales Deleted: Miesha Brown Deleted: James Keene Deleted: Lynn Krug Deleted: Deleted: Anthony Mouton Deleted: Allyson Hauck Deleted: Joseph Duran Natalie Korthamar Deleted: , Manager of ¶ Employee and Labor Relations Deleted: D Deleted: Mark Chase Deleted: Maria Patino Deleted: , HR Representative Deleted: Aimee Bailey Deleted: Dean Batchelor Deleted: Erwin Gonzales Deleted: Debra Burger Deleted: Margaret Quillman Deleted: Diane Lai Deleted: ¶ __________¶ Deleted: Lydia Wallace-Pounds Deleted: Rhyena Halpern¶ Deleted: __________ Deleted: __________ Deleted: Ratu Serumalani Deleted: Richard Baptist Deleted: Mary Sekator¶ City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 63 of 78 Deleted: December Deleted: 5 Deleted: 18 Andrez Escamilla Robin Ellner Deleted: Pete Quiroz¶ Deleted: James Stuart¶ City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 64 of 78 Deleted: December Deleted: 5 Deleted: 18 APPENDIX A The salary rates of bargaining unit classifications will be as set forth in Appendix A of this MOA Base Salary: Effective the first full pay period following adoption by Council (anticipated Council meeting April 22, 2019, PP10), employees in this unit shall receive a 3.5% salary increase. Effective the first full pay period including December 1, 2019 (PP25), employees in this unit shall receive a 3.5% salary increase. Effective the first full pay period including December 1, 2020, employees in this unit shall receive a 3.0% salary increase. Recruitment and Retention For job families below median after receiving the 3.5% salary increase upon Council adoption of the contract listed above, the City will provide market adjustments to market median. Job Families specified below are exempt from this section’s market adjustments. Effective the first full pay period following adoption of this contract by Council, the following additional adjustments will be made: a) Public Safety Dispatch (Job Family) will receive an additional 5% salary effective the first full pay period following adoption of this contract by Council for a total of an 8.5% salary increase. b) Lineperson Cable Splicer Job family (excluding Lineperson job series, Compliance Tech job series, Overhead Underground Troubleman, and Utility Systems Operator series) will receive an additional 10% salary effective the first full pay period following adoption of this contract by Council for a total of a 13.5% salary increase. c) Lineperson job series, Compliance Tech job series, Overhead Underground Troubleman, and Utility Systems Operator series will receive an additional 20% salary effective the first full pay period following adoption of this contract by Council for a total of a 23.5% salary increase. Resolution of Charges, Grievances, and meet and confers The Union agrees to withdraw the following: City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 65 of 78 Deleted: December Deleted: 5 Deleted: 18 • Grievance # 77457-2018- Comp Time • Grievance # 76887-2017- Schedules • ULP No. SF-CE-1649-M • Resolution of Lab Tech Job Description meet and confer City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 66 of 78 Deleted: December Deleted: 5 Deleted: 18 APPENDIX B. APPRENTICESHIPS Note: Employees hired into a Lineperson Apprenticeship position on or before April 11, 2016 will continue to progress through the Apprenticeship steps and into the Lineperson journey rate at the same intervals as existed before April 11, 2016 in the Apprenticeship Program. Substation Electrician, Street Light /Traffic Signal / Fiber Technician, Lineperson/Cable Splicer APPRENTICE: Upon completion, may lead to Journey level position. The Utilities Department has formalized the Apprenticeship programs in the Electric Section to develop journey level electricians/technicians and lineperson/cable splicers. The following are basic concepts/principles to be incorporated: 1. The administration and operation of the Apprenticeship programs will be managed by the Apprenticeship Committee, which will be selected by the Manager of Electric Operations and comprised of two (2) bargaining unit members designated by Local 521 and two (2) Utility Supervisors and the Manager of Electric Operations. The Manager of Electric Operations will maintain oversight of the program. The Apprenticeship Program will be subject to review and approval by the State of California Department of Industrial Relations Division of Apprenticeship Standards. 2. The journey level position will not be a promotional opportunity for anyone other than the apprentice under filling the position, as long as that apprentice is successfully progressing through the program. 3. Employees within Electric Operations, who qualify, will be given first consideration for the apprentice position prior to other City classifications or recruiting from outside the City. 4. A letter of agreement will be entered into by the apprentice and the City identifying the terms and conditions of the program. 5. The program will normally require eight thousand (8000) work hours (48 months) to complete for Lineperson Cable Splicer and six thousand (6000) work hours (36 months) for Substation Electrician, Street Light /Traffic Signal / Fiber Technician positions. 6. Normal progress through the program will be in periodic increments with formal evaluations. Deleted: Effective the pay period following execution of a successor following ratification and approval by the Union and the City Council, employees in this unit will receive a 1.5% salary increase.¶ ¶ Effective the pay period following December 1, 2016, employees in this unit will receive a 3% salary increase.¶ ¶ Effective the pay period following December 1, 2017, employees in this unit will receive a 3% salary increase.¶ ¶ This Appendix will be amended to reflect salary increases and market adjustments with the effective dates shown in Appendix A- 1, with the final salary schedule as shown in Appendix A-2. ¶ ¶ <#>For employees below median after receiving the first salary increase of 1.5% as listed above, the City will provide 1/3 market adjustment to median effective the first pay period following ratification by the Union. ¶ <#>The City will provide the second 1/3 market adjustment to median, effective the first pay period following December 1, 2016. ¶ <#>The City will provide the final 1/3 market adjustment to median, effective the first pay period following July 1, 2017.¶ ¶ For these market adjustments, the City will use market data effective as of December 31, 2015.¶ ¶ <#>The City shall maintain service retention steps of 2.5% of base for Dispatcher I, II and Lead at the beginning of 7th year and beginning of 10th year.¶ <#>Utility System Operators will receive a 10% recruitment and retention pay increase the first full pay period following adoption of this agreement¶ <#>Public Safety Dispatchers (I,II, and Lead) will receive a 10% recruitment and retention pay increase the first full pay period following adoption of this agreement.¶ <#>WQCP Operators and Senior Operators will receive a 5% recruitment and retention pay increase the first full pay period following adoption of this agreement.¶ ¶ ¶ City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 67 of 78 Deleted: December Deleted: 5 Deleted: 18 7. The salary steps for the Substation Electrician, Street Light /Traffic Signal / Fiber Technician and Lineperson Cable Splicer apprenticeships are outlined in the State of California Department of Industrial Relations Division of Apprenticeship Standards. Employees hired into a Lineperson/Cable Splicer Apprenticeship position will be paid at step 1 of the Lineperson/Cable Splicer Apprentice step range. Upon completion of all course work requirements outlined in the apprentice syllabus, the employee will progress as follows: Month Step Step Intervals 1-12 1 12 months 13-24 2 12 months 25-36 3 12 months 37-42 4 6 months 43-48 5 6 months Upon successful completion of the fourth year following commencement of the Apprenticeship, the employee will be reclassified/progressed to Lineperson / Cable splicer Journey Level and paid at the top step (step 5) of the journeyman rate. In any case, successful completion of the program and movement into the Lineperson Cable Splicer journey level classification will not transpire until the employee has fulfilled all of the requirements outlined in the program content description and received the recommendation of the Apprenticeship Committee. Employees hired into a Substation Electrician or Street Light /Traffic Signal / Fiber Technician Apprenticeship position will be paid at step 1 of the Substation Electrician or Street Light /Traffic Signal / Fiber Technician step range. Upon completion of all coursework requirements outlined in the apprentice syllabus, the employee will progress as follows: Month Step 1-6 1 7-12 2 13-18 3 19-24 4 25-36 5 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 68 of 78 Deleted: December Deleted: 5 Deleted: 18 Upon successful completion of the Apprenticeship, the employee will be reclassified / progressed to Substation Electrician or Street Light /Traffic Signal / Fiber Technician Journey Level and paid at the fifth step (step 5) of the journeyman rate. In any case, successful completion of the program and movement into the Substation Electrician or Street Light /Traffic Signal / Fiber Technician journey Level classification will not transpire until the employee has fulfilled all of the requirements outlined in the program content description and received the recommendation of the Apprenticeship Committee. 8. Should an apprentice prove deficient in progressing through either the coursework or on-the-job training portion of an apprenticeship step, the apprentice shall not progress to the next higher step nor shall the apprentice receive the step increase in wages. The apprentice as described above may at the discretion of the appropriate Division Manager, be granted a three (3) month extension to eliminate the deficiency and be allowed to progress to the next higher step in the apprenticeship and receive the step increase in wages. *Note: A maximum of two (2) time extensions may be granted during the term of the apprenticeship. Any apprentice that is removed due to documented deficiency shall have their employment terminated. 9. The City and the Union agree to review or develop job descriptions to better reflect the qualification necessary to attract and retain successful candidates for this program. It is further agreed that the job descriptions will not warrant additional compensation. 10. Training will consist of on-the-job (OJT) and required training as outlined in the program, Training costs will be funded by departmental funds and employees will be compensated their normal wages while attending required training. Personal time spent in off-the-job training and/or study will not be compensated. 11. The apprentice will be under the continuing guidance of an appropriately qualified journey level person during OJT. Such journey level persons will be assigned by Management from among volunteers who will not receive additional compensation. 12. Qualifications/progress will be verified by appropriately kept records. 13. Unless specifically stated otherwise, regular City personnel policies and MOA provisions will apply to the apprenticeship program. 14. This program may become a conceptual model for apprenticeships in other divisions or departments. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 69 of 78 Deleted: December Deleted: 5 Deleted: 18 APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION Section 1. Exceptions to Standard Workday or Work Week for SEIU Representation Unit: Library Department Coordinator, Library Programs Librarian Senior Librarian Library Specialist Library Associate In a given workweek, staff may work three eight-hour days, one seven-hour day, and one nine-hour day. On a voluntary basis, staff may work five non-consecutive days within seven. Section 2. Rules Governing Flexible Work Hours. These rules and procedures are established pursuant to Article VI, Section 8, and are an application of Article VIII, Sections 1, 2, and 3 of the Memorandum of Agreement to the classifications of Coordinator, Recreation Programs; Producer, Arts & Sciences Programs; Program Assistant; Theater Specialist, in the Recreation and Arts & Sciences Divisions of the Community Services Department, and the classifications of Associate Planner, Building Planning Technician, CDBG Coordinator, Engineer, , Planner, and Senior Planner in the Planning and Community Environment Department. a) Flexible Work Schedule 1. Employees in the covered classification shall be permitted to arrange flexible work schedules with division approval, providing that such schedules shall include forty (40) hours per week. 2. Standard daily office hours are typically Monday through Friday, between the hours of 8:00 a.m. and 6:00 p.m. as determined by the Department. Flexible hours may occur for supervision of, and/or attendance at, evening programs, meetings, weekend events, or other programs. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 70 of 78 Deleted: December Deleted: 5 Deleted: 18 b) Overtime 1. Emergency call-out work shall be defined as overtime work and compensated per standard City practices. 2. If the need arises for overtime work due to an unusual circumstance calling for extra hours or due to a special event, compensation shall be allowed with prior approval of the Director of Recreation, Director of Arts and Sciences, or the Director of Planning and Community Environment, and shall be compensated for, as spelled out in the Memorandum of Agreement. Section 3. 2080 Plan a) Either the Union or the City may withdraw from the Plan by giving the other party 30 calendar days written notice. In the event of termination of the plan, the covered classifications will return to an 8-hour or other authorized workday as provided under Article VIII, Section 1, of this Memorandum of Agreement. b) Provisions of the 2080 Plan are as follows. To the extent that these provisions are in conflict with other provisions of the Memorandum of Agreement, these provisions will prevail. c) The 2080 Plan or “12 hours per Shift Schedule” is an authorized work schedule for the Utility Systems Operators and Water Quality Control Plant Operators. 2080 Plan Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For scheduling purposes, and subject to the Merit System Rules and Regulations, the employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks at the normal number of hours worked per week. Any employee covered by the Plan who works up to 2,080 hours per year is compensated for all hours worked at the agreed upon rate. The City must pay overtime for all hours worked in excess of 12 in any workday, 56 hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of overtime will be at time and one-half the employee's regular rate of pay (or current contract overtime rate, if different). Shift Schedule The shift schedules combined must provide full 24-hour, seven (7) days per week coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule shall be a rotating schedule. The Utility Systems Operators’ shift schedule will reach the equivalent of 40 hours per week in five weeks. The 12-hour shifts begin at 7:00 a.m. and 7:00 p.m. The Relief shift shall begin at 7:00 a.m. and end at 3:00 p.m. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 71 of 78 Deleted: December Deleted: 5 Deleted: 18 with lunch taken while working. The shift schedule shall be rotating schedule. The Water Quality Control Plant Operators’ shift schedule will reach the equivalent of 40 hours per week in two weeks. There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon on the fourth day. Pay Period Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay periods and workweek for the Water Quality Control Plan Operators will begin Saturday at 6:01 a.m. Wages Wages will be based on the City of Palo Alto Compensation Plan, which may vary from time to time as mutually agreed upon. Overtime Under the 2080 Plan, the City will pay overtime for all hours worked in excess of 12 in any workday, 56 in any work week, or 2080 in 52 weeks, as the case may be. Overtime will also be paid for hours worked when an employee is called in to work other than their regularly-scheduled shift. The overtime rate of pay will be one and one-half times (or current contract overtime rate, if different) of the employee's regular rate of pay. All overtime worked will be paid to the employee. No compensatory time off for overtime will be allowed with the exception of Water Quality Control Operations. Relief Employees This provision only applies to the Utility Systems Operators. The five Operators share the relief week evenly as they rotate through the five week cycle. Relief employee(s) will be used within the 12-hours shift schedule only when relieving for the System Operators on shift. When not relieving, they will work four eight-hour shifts. When a vacation relief week results in a 36-hour or 48-hour week, the operator working said week shall be paid at one and one-half (1½) time their normal rate of pay for hours that exceed thirty two (32) hours. Relief Duties This provision only applies to the Utility Systems Operators. An employee who is scheduled to perform relief duties shall be available for duty in revolving shifts on any day of the week and may be assigned for relief in any shift without advance notice. Relief employees will be paid standby pay during their relief week. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 72 of 78 Deleted: December Deleted: 5 Deleted: 18 Standby This provision only applies to the Utility Systems Operators. An employee who is on relief duties is covering standby, and will be compensated according to Article VIII, Section 7 (a) of the Memorandum of Agreement. If the relief employee is on vacation or otherwise unavailable for relief duties, the employee(s) on their three or four-day off period will be first on standby. Management reserves the right to utilize Management personnel as Operators on a short-term, as needed basis, if no Operator is available. Filling Vacant Positions If the City elects to fill a vacancy other than by reassignment of the shift or the utilization of prior or succeeding shift personnel, the following procedure shall be used: Employees will be called according to their position on the Pre-arranged Overtime List (POL), with the person with the lowest balance being the first one called. The purpose of the POL is to fairly distribute the available opportunities. If an employee turns down the overtime, that amount will be added to the employee's POL balance. If an employee cannot be contacted for such assignment, the employee will not have any overtime added to their POL account balance. Shift Changes Shift changes caused by scheduled time off or sick leave will not be considered an official change in shift. Maximum Hours Worked No employee shall work more than 18 consecutive hours. Rest Period In a 12-hour workday, employees are entitled to a rest period of 8 consecutive hours after working 6 hours overtime during the 12 hours immediately before the regularly scheduled hours of work on a workday or non-workday. Holidays Employees who begin their day or night shift on an observed holiday will receive overtime premium in accordance with Article X, Section 3 of the Memorandum of Agreement. Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. Employees working for Water Quality Control Operations may accrue holiday time convertible to vacation. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 73 of 78 Deleted: December Deleted: 5 Deleted: 18 Sick Leave Sick leave will be earned as indicated in Article XII, Section 1(a) of this MOA, and shall be charged in increments of one hour. Floating Days Off Floating holidays will be made available to eligible employees and used pursuant to Article X, Section 5. Vacation An employee's total entitlement will be converted to hours (eight hours = one day). A workday will consist of 12 hours, and employees taking vacation will be charged 12 hours of use. Two week notification is required for any scheduled time off. Only one person at a time may be scheduled off. It is the intention of the City that vacation be taken in units of one work week; however, with approval of his/her supervisor, an employee may use his/her accrued vacation in units of less than one work week. Meals Shift employees shall be permitted to eat their meals during work hours and shall not be allowed additional time, therefore at City expense. Shift Premium Shift premium will be handled in accordance with the current Memorandum of Agreement between the City and the Union, Article VIII, Section 8. Jury Duty Time off for jury duty which occurs on a regularly scheduled workday will result in the employee being credited with up to 12 hours worked, for pay purposes. Employees called for jury duty who are working the evening portion of the 12-hour schedule will be placed, for payroll and scheduling purposes, on the day shift for each scheduled day such employee is required to report for jury duty, and will not be required to work the evening 12-hour shift before or after being required to report for jury duty. However, such employee shall return to work on the day shift upon being released from such duty if there are at least four hours remaining prior to the end of the day shift. All other provisions of Article XII, Section 5, of the current Memorandum of Agreement shall apply. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 74 of 78 Deleted: December Deleted: 5 Deleted: 18 APPENDIX D. IN-LIEU PREMIUMS 1. For employees in the following operations assigned to work schedules other than Monday through Friday, the calendar day will be considered the holiday for premium pay of in-lieu scheduling purposes: Communications Water Quality Control Animal Control Golf Course Utilities Services Landfill Open Space Electric System Operator c) If December 24 and 31 fall on Sunday, then the preceding Friday will be designated for purposes of excused time off, except in the case of Community Services staff who may be scheduled to work on Saturday, in which case Saturday will be designated for purposes of excused time off. For Open Space and Library personnel, designation of excused time off will be based on Park and Library schedules and employee preference. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 75 of 78 Deleted: December Deleted: 5 Deleted: 18 APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS 1. Promotional opportunities within the Communications Division will be carried out in compliance with procedures set forth in Article VI, Section 5, of the Memorandum of Agreement between the City and SEIU Local 521, except that: a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined as Division Seniority. • Division Seniority, for the purposes of shift scheduling, vacation scheduling and promotional opportunities will be calculated from an employee’s first day of employment in the division. Any unpaid leave that is not protected under FMLA or CFRA will not count as service days towards seniority, unpaid furlough, and unpaid closure time. Other areas of seniority not mentioned in this article will follow Article 6, Section 5, e “Seniority” of the Memorandum of Agreement between SEIU 521 and the City of Palo Alto. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 76 of 78 Deleted: December Deleted: 5 Deleted: 18 APPENDIX F. RECOVERY OF CITY TRAINING COSTS In recognition of the extended training provided to affected employees, the Parties agree that the City may recover up to thirty percent (30%) of its cost for training employees, hired on or after July 1, 2012, in all Utilities Apprentice classifications and in the Park Ranger Apprentice classifications if the employee voluntarily terminates from the City or abandons his or her City employment before completing three years of City service in the Journeyman classification or Park Ranger classification. The amount recovered shall reasonably reflect the City’s cost for the training, but will exclude all wage or benefit costs, and will be prorated to reflect the portion of the thirty-six (36) month post-training service period remaining at the time of the employee’s termination. As of July 1, 2015 thirty percent (30%) of the City’s average cost for training employees in: • Lineperson/Cable Splicer Apprenticeship Program is $5600.00 • For the Field Service Representative, the City’s two year training cost is $ 6,000 • For Substation Electrician Apprenticeship Program is $4800.00 • For Street Lighting / Traffic Signals / fiber Apprentice program is: $1800.00 • For Park Ranger, the City’s two-year training cost is:$6,300 The employee will be required to sign an agreement providing for reimbursement to the City as provided above on the form attached hereto as Appendix H. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 77 of 78 Deleted: December Deleted: 5 Deleted: 18 APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT This Agreement is entered into between ___________ (“Employee”) and the City of Palo Alto (the “City”), as authorized by the Memorandum of Agreement between the City and SEIU Local 521. RECITALS A. The purpose of this Agreement is to limit the City’s risk that it will invest substantial sums in the Employee’s training but potentially lose the value of that training if the employee terminates without rendering substantial journey level service to the City after training. B. The City may require reimbursement from Employee of thirty percent (30%) of the total training cost for _______position, subject to abatement when specified service requirements are met. C. On or about (date) City extended to Employee a conditional offer of employment in the position of _________(position), subject to Employee’s agreement to complete the training necessary to perform the duties of _______ (position), under the terms of the training program. The ______(position) requires [description of training], which as of July 1, 2015 cost the City approximately $ over the course of the training. D. This agreement sets forth the Employee’s agreement to reimburse the City for the City’s investment in the Employee’s training if the employee voluntarily terminates from the City prior to the completion of thirty-six months of service following successful completion of the training. THEREFORE, the Parties agree to the terms set forth below: By signing this agreement, the Employee understands that s/he is bound by agrees to the following terms: 1. ____________________________________ (hereafter “Employee”) agrees that in training Employee for the position of _________________________________________, the City of Palo Alto (hereafter “City”) incurs a total cost of $___________. 2. Employee agrees that amounts recoverable under this agreement do not include Employee wage or benefit costs. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 78 of 78 Deleted: December Deleted: 5 Deleted: 18 3. Employee agrees that in the event he/she voluntarily terminates or abandons his or her employment from the City prior to the completion of thirty-six (36) months of service following the successful completion of his or her apprenticeship, he/she will repay the City for the cost of training noted above, prorated to reflect the months of service the Employee has completed following successful completion of their training. Employee agrees that for the purpose of this agreement, “time of service” shall begin on the date following the successful completion of the Employee’s training. 4. Employee agrees that the aggregate amount of repayment due will be determined based upon the attached proration table. 5. Employee agrees that repayment shall be due and made in equal monthly installments over the twelve (12) months immediately following termination, on the first of each such month. 6. If Employee does not fully reimburse the City for the amounts due when due, the entire aggregate amount owed will become immediately due, the employee will be deemed in default on this agreement and the City may initiate legal proceedings to collect said amounts. Employee will be responsible for all reasonable collection costs and attorney fees incurred by the City in undertaking such proceedings. The City may elect to forbear taking such action to allow Employee the opportunity to become current on the debt. Such forbearance will not alter the Employee’s default status or adversely affecting the City’s right to later initiate proceedings for recovery pursuant to this Agreement. 7. This agreement shall be effective on the date listed below. DATED: ___________________ ______________________________________ Employee ______________________________________ Title, City of Palo Alto CITY OF PALO ALTO Memorandum of Agreement City of Palo Alto and Service Employees International Union (SEIU) Local 521 January 1, 2019 – December 31, 2021 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 1 of 78 TABLE OF CONTENTS PREAMBLE ....................................................................................................................... 6 ARTICLE I – RECOGNITION .......................................................................................... 6 Section 1 - Recognition. .................................................................................................. 6 Section 2 - Protection of Unit. ........................................................................................ 6 ARTICLE II - NO DISCRIMINATION............................................................................. 6 Section 1 – Discrimination.............................................................................................. 6 Section 2 - Right to Join the Union. ................................................................................ 7 ARTICLE III – UNION MEMBERSHIP ........................................................................... 7 Section 1 - Notice............................................................................................................ 7 Section 2 – Payroll Deductions ....................................................................................... 7 Section 3. Certification of Union Membership. .............................................................. 7 Section 4. Indemnification, Defense and Hold Harmless ............................................... 8 Section 5 - Documentation.............................................................................................. 8 Section 5 - Bulletin Boards and Departmental Mail. ...................................................... 8 Section 6 - Access to Union Representatives. ................................................................ 9 Section 7 - Meeting Places. ............................................................................................. 9 Section 8 - Notification to the Union. ............................................................................. 9 Section 9 - Union Logo ................................................................................................... 9 Section 10 - Public Notice. ........................................................................................... 10 Section 11 - Use of Agency Reports. ............................................................................ 10 Section 12 - Job Postings .............................................................................................. 10 Section 13 - Contracting Out ........................................................................................ 10 ARTICLE IV - STEWARDS............................................................................................ 10 Section 1 - Union Officers. ........................................................................................... 10 Section 2 - Number of Stewards. .................................................................................. 11 Section 3 - Release Time. ............................................................................................. 11 Section 4 - Advance Notification Before Leaving Work Location. ............................. 11 Section 5 – Release Time .............................................................................................. 11 Section 6 - Designated Union Space. ............................................................................ 12 Section 7 - Union Officers and Release Time. ............................................................. 12 ARTICLE V - REDUCTION IN FORCE ........................................................................ 12 Section 1 - Attrition. ..................................................................................................... 12 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 2 of 78 Section 2 - Advance Notice. ......................................................................................... 12 Section 3 - Order of Layoff. .......................................................................................... 12 Section 4 - Seniority/Bumping Rights. ......................................................................... 12 Section 5 - Re-Employment List................................................................................... 13 Section 6 - Sick Leave Balances. .................................................................................. 13 Section 7 - Hourly Employees Performing Duties. ...................................................... 13 ARTICLE VI - PERSONNEL ACTIONS ........................................................................ 14 Section 1 - Probation. .................................................................................................... 14 Section 2 - Personnel Evaluations................................................................................. 14 Section 3 - Personnel Files. ........................................................................................... 14 Section 4 - Release of Information. .............................................................................. 15 Section 5 - Promotional Opportunities. ........................................................................ 15 g) Violations........................................................................................................ 16 Section 6 - Rights. ......................................................................................................... 17 Section 7 - Apprentice Positions. .................................................................................. 17 Section 8 - Rotation. ..................................................................................................... 17 ARTICLE VII - PAY RATES AND PRACTICES .......................................................... 17 Section 1 - Salary. ......................................................................................................... 17 Section 2 - Step Increases. ............................................................................................ 17 Section 3 - Working Out of Classification .................................................................... 17 Section 4 - Classification Changes. .............................................................................. 18 Section 5 - Reclassification Requests. .......................................................................... 18 Section 6 - Assignment to a Lead Position. .................................................................. 19 Section 7 - Total Compensation and Survey Database. ................................................ 20 Section 8 - Direct Deposit ............................................................................................. 20 ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY ......................... 21 Section 1 - Work Week and Work Day. ....................................................................... 21 Section 2 - Overtime Work. .......................................................................................... 21 Section 3 - Work Shifts. ................................................................................................ 23 Section 4 - City-Paid Meals. ......................................................................................... 23 Section 5 - Break Periods .............................................................................................. 25 ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES ........................................... 27 Section 1 - Uniforms. .................................................................................................... 27 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 3 of 78 Section 2 - Tool Allowance. ......................................................................................... 30 Section 3 - Shoe Allowance. ......................................................................................... 30 Section 4 – Certifications. ............................................................................................. 31 Section 5 - Weather Protection. .................................................................................... 35 ARTICLE X - HOLIDAYS .............................................................................................. 35 Section 1 - Fixed Holidays. ........................................................................................... 35 Section 2 - Pay for Fixed Holidays. .............................................................................. 36 Section 3 - Work on Fixed Holidays............................................................................. 36 Section 4 - Variations in Work Week. .......................................................................... 36 Section 5 - Floating Days Off ....................................................................................... 37 ARTICLE XI - VACATIONS .......................................................................................... 37 Section 1 - Vacation Accruals. ...................................................................................... 37 Section 2 - Holiday Falling During Vacation. .............................................................. 38 Section 3 - Illness During Vacation. ............................................................................. 38 Section 4 - Accrued Vacation Pay for Deceased Employees. ...................................... 38 Section 5 - Effect of Extended Military Leave. ............................................................ 38 Section 6 - Vacation at Termination. ............................................................................ 38 Section 7 - Vacation Cash Out. ..................................................................................... 38 ARTICLE XII - LEAVE PROVISIONS .......................................................................... 39 Section 1 - Sick Leave. ................................................................................................. 39 Section 2 - Bereavement Leave. ................................................................................... 40 Section 3 - Military Leave. ........................................................................................... 41 Section 4 - Leave Without Pay. .................................................................................... 41 Section 5 - Jury Duty and Subpoenas ........................................................................... 41 Section 6 - Time Off to Vote. ....................................................................................... 42 Section 7 - Disapproval of Leave of Absence. ............................................................. 42 Section 8 - Personal Business Leave Chargeable to Sick Leave. ................................. 42 Section 9 - Return to Assignment. ................................................................................ 42 ARTICLE XIII - WORKERS' COMPENSATION INSURANCE .................................. 42 Section 1 - Industrial Temporary Disability. ................................................................ 42 Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. 43 ARTICLE XIV - BENEFIT PROGRAMS ....................................................................... 43 Section 1 - Health Plan. ................................................................................................ 43 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 4 of 78 Section 2 - Dental Plan. ................................................................................................ 46 Section 3 - Vision Care ................................................................................................. 47 Section 4 - Life Insurance ............................................................................................. 47 Section 5 – Long Term Disability Insurance ................................................................ 47 Section 6 - Effective Date of Coverage for New Employees ....................................... 47 Section 7 - Dual Coverage ............................................................................................ 47 Section 8 - Deferred Compensation .............................................................................. 48 Section 9 – Dependent Care Assistance Program and Medical Flexible Spending Accounts. ...................................................................................................................... 48 Section 10 - Training Programs. .................................................................................... 48 ARTICLE XV – RETIREMENT...................................................................................... 48 Section 1 - PERS Continuation. .................................................................................... 48 Section 2 - Employee Share. ......................................................................................... 49 Section 3. Employer Share. ........................................................................................... 50 ARTICLE XVI - COMMUTE INCENTIVES AND PARKING ..................................... 50 Section 1 - Commute Incentive. .................................................................................... 50 Section 2 – Parking Lot Security – Municipal Service Center. .................................... 51 Section 3 – Bicycle Lockers and Motorcycle Parking. ................................................. 51 ARTICLE XVII - PHYSICAL EXAMINATIONS .......................................................... 51 ARTICLE XVIII – SAFETY ............................................................................................ 52 Section 1 - Health and Safety Provisions ...................................................................... 52 Section 2 - Union Cooperation. .................................................................................... 52 Section 3 - Safety Committees and Disputes. ............................................................... 52 ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE ....................................... 53 Section 1 - General Provisions. ..................................................................................... 53 Section 2 – Definitions.................................................................................................. 53 Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure. ..................................................................................................................... 53 Section 4 - Grievance and Appeal Procedure. .............................................................. 55 ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION ........................................................................................................................... 57 Section 1 - Preliminary Notice of Discipline. ............................................................... 57 Section 2 - Skelly Meeting. ........................................................................................... 58 Section 3 – Appeals. ..................................................................................................... 58 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 5 of 78 ARTICLE XXI - NO ABROGATION OF RIGHTS ....................................................... 58 ARTICLE XXII - OUTSIDE EMPLOYMENT ............................................................... 59 ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS ......................................... 59 ARTICLE XXIV - PROVISIONS OF THE LAW ........................................................... 59 Section 1 - Conformity and Separability of Provisions. ............................................... 59 Section 2 - Merit Rules and Regulations. ..................................................................... 59 Section 3 - Resolution. .................................................................................................. 59 ARTICLE XXV - TUITION REIMBURSEMENT ......................................................... 59 ARTICLE XXVI - COST REDUCTION PROGRAMS .................................................. 60 ARTICLE XXVII – TERM .............................................................................................. 61 APPENDIX A ................................................................................................................... 64 APPENDIX B. APPRENTICESHIPS .............................................................................. 66 APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION .................................................................................................................... 69 APPENDIX D. IN-LIEU PREMIUMS ............................................................................ 74 APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS .............................. 75 APPENDIX F. RECOVERY OF CITY TRAINING COSTS .......................................... 76 APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT ............ 77 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 6 of 78 PREAMBLE This Memorandum of Agreement (hereinafter “MOA” is entered into by the City of Palo Alto (hereinafter referred to as the “City”) and Local 521 Service Employees’ International Union, CTW (hereinafter referred to as the “Union”). For the purposes of this MOA “employee” shall mean an employee assigned to a classification within the SEIU General Employee bargaining unit. This MOA is pursuant and subject to Sections 3500-3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit Rules and Regulations. ARTICLE I – RECOGNITION Section 1 - Recognition. Pursuant to Sections 3500 - 3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations, the City recognizes the Union as the exclusive representative of a representation unit consisting of all regular full and part-time employees in the classifications listed in Appendix A attached hereto. This unit, shall for purposes of identification, be titled the SEIU General Employees bargaining unit (hereinafter “General Unit”). Section 2 - Protection of Unit. No supervisor will perform the work of an employee in the General Unit provided that there is an employee available who regularly performs such work. This does not preclude a supervisor from performing work of a minor nature or during bona fide emergencies or on a standby status when willing and qualified unit employees do not live within a reasonable response time of their work location. Supervisory personnel shall be called out to perform unscheduled work only when SEIU General unit employees are unavailable to perform such work or in cases of bona fide emergencies as defined in Article VIII, Section 2. In cases of bona fide emergencies, SEIU General Unit employees shall be called out to complete the necessary work after the immediate emergency situation has been reasonably contained. ARTICLE II - NO DISCRIMINATION Section 1 – Discrimination. The City of Palo Alto is committed to providing a work environment free from all forms of harassment and discrimination and agrees not to harass or discriminate against employees or applicants based on such characteristics such as race, ethnicity, color, religion, political affiliation, veteran status, military status, national origin, ancestry, disability, medical condition, marital status, age, pregnancy, sex, sexual orientation, gender identity and gender expression, or the perception that any person has such characteristic, and any other characteristic protected by federal or City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 7 of 78 state law or City Ordinance. The City of Palo Alto will not harass or discriminate against employees from exercising their rights to organize in accordance with the Meyers-Milias Brown Act. Complaints of harassment and discrimination should be reported immediately to the Department of Human Resources and will be investigated in accordance with the City’s Policy and Procedures. Section 2 - Right to Join the Union. The City and the Union agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. ARTICLE III – UNION MEMBERSHIP Section 1 - Notice. When a person is hired in any of the covered job classifications, the City shall notify that person that the Union is the recognized bargaining representative for the employee and give the employee a current copy of the Memorandum of Agreement. When a group employee orientation is held for new employees of the bargaining unit, a union representative may make a presentation to such bargaining unit employees for the purpose of explaining matters of representation. The presentation shall not exceed 30 minutes. Section 2 – Payroll Deductions The City shall deduct Union membership dues and pay other mutually agreed upon deductions (including Committee on Political Education (COPE)) from the bi-weekly pay of member employees. The deductions in this Section shall not apply during any period where an employee is in an unpaid status and/or transfers or in any other manner leaves the representation unit. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain all authorizations for dues deductions signed by the individual from whose salary or wages the deduction or reduction is to be made. The City will direct employee requests to cancel or change deductions to the Union. Deductions may be revoked only pursuant to the terms of the employee’s written authorization. The City shall remit the deducted dues to the Union as soon as possible after deduction. Section 3. Certification of Union Membership. The Union agrees to provide the City on a monthly basis, a certified list of members and a statement that the Union has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made, and a City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 8 of 78 statement that the Union shall indemnify the City for any claims made by the employee for deductions made in reliance on that certification, in accordance with Government Code Section 1157.12(a). Section 4. Indemnification, Defense and Hold Harmless Union agrees to indemnify and hold harmless the City and all officials, employees, and agents acting on its behalf, from any and all claims, actions, damages, costs, or expenses including all attorney’s fees and costs of defense in actions against the City, its officials, employees or agents as a result of actions taken or not taken by the City pursuant to this Article. Section 5 - Documentation. The City shall supply the Union with: a) a monthly electronic file on or before the 15th of the month with the names, addresses, classifications, hourly base pay, pay period number, work locations, work phone, home phone number, personal cellphone number, employee number, and personal email, Committee on Political Education (COPE) listed separately and last four digits of the Social Security number of all bargaining unit employees on file with the City except those who file written notice with the Human Resources Department objecting to release of addresses, home telephone number, personal cellphone number, or personal email address, in which case information will be transmitted without these objected items; and b) a list of bargaining unit new hires, terminations and retirements which occurred during the previous month. The Union shall supply the City, and as applicable, the employees, with documentation required by Government Code Section 3502.5 (f). Section 5 - Bulletin Boards and Departmental Mail. The Union shall have access to inter-office mail, existing bulletin boards in unit employee work areas for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission. The Union may send email messages only for the purposes set forth above. The IT Department will maintain the SEIU list and keep it current. The Union access to email is based on the following conditions: 1) emails to the SEIU list will be copied to the Human Resource Director, or designee at distribution; 2) emails to the SEIU list will only be sent by the SEIU Chapter City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 9 of 78 Chair, Vice Chair, Chief Steward (s) or Secretary, 3) a maximum of 52 emails may be sent per year and a maximum of 12 emails may be sent by the SEIU Chapter Secretary. Section 6 - Access to Union Representatives. Representatives of the Union are authorized access to City work locations for the purpose of conducting business within the scope of representation, provided that no disruption of work is involved and the business transacted is other than recruiting of members or collecting of dues, and the representative must notify the Human Resources Department prior to entering the work location. Section 7 - Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during lunch periods or other non-working hours. Such meeting places will be made available in conformity with City's regulations and subject to the limitations of prior commitment. Section 8 - Notification to the Union. a) General. Pursuant to Government Section 3500, et seq. (Meyers-Milias-Brown Act as amended), the Union shall be informed in advance in writing by Management before any proposed changes not covered by this Memorandum of Agreement are made in benefits, working conditions, or other terms and conditions of employment which require meet and confer or meet and consult process. This paragraph shall not be subject to the grievance procedure of this Memorandum of Agreement so long as the Public Employment Relations Board retains jurisdiction over the obligation to meet and confer in good faith. b) Change in City’s Financial Situation. Should the City’s financial situation deteriorate and the possibility of layoffs result, the City Manager will give prior notice to and consult with the Union prior to recommending any layoffs to the City Council. c) Vacancies and Temporary Personnel. The City agrees to notify SEIU Local 521 in writing when any irregular, temporary, hourly, provisional, special or extra help employee who consistently performs work typical of the SEIU Local 521 bargaining unit exceeds 1,000 hours of work within a 18-month period. The City agrees to notify SEIU Local 521 in writing when any position covered by this agreement is left vacant for more than 60 days. In coordination with the SEIU 521 Hourly representation Unit, the City and SEIU 521 may meet regarding the conversion of any long term and on-going hourly positions which may be converted to full time positions through the budget process. Section 9 - Union Logo. All materials and documents produced on Itek and metal plates, by the City print and reproduction shop, shall carry the Union label on the inside of covers or title pages in accordance with customary printing trades practices. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 10 of 78 Section 10 - Public Notice. The City shall make available to the Union, in a timely manner, copies of all City Council meeting agendas, minutes and schedule of meetings. These materials will be available online via the City’s website. Section 11 - Use of Agency Reports. Upon request, the City shall provide to the Union reports by department on the use of agency temporaries filling representation unit vacant positions, or doing work similar to that of representation unit classifications. Section 12 - Job Postings. The City shall incorporate the requirements of this Article when publicizing job announcements for classifications covered by this Memorandum of Agreement. Section 13 - Contracting Out. The City through the labor management process will keep the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SEIU bargaining unit work traditionally performed by bargaining unit members at least thirty (30) days prior to the release of the City Manager’s proposed budget. The City will notify the Union in writing at least ninety (90) days prior to contracting work which has been traditionally performed by bargaining unit members. Within the ninety (90) day period of contracting out, both parties may offer alternatives to contracting out and meet and confer on the impact of such contracting out of a bargaining unit employee work. The City will notify the Union in writing when contracting out work which has been traditionally performed by bargaining unit workers, where such contracting out is expected to replace a laid off bargaining unit position that has been eliminated within ninety (90) days prior to the date of the planned contract work. When feasible, the City will provide such notice prior to the beginning date of the planned contract work. The City will meet with the Union upon request to discuss alternatives. This provision does not apply to the filling of temporary vacancies of twelve (12) months or less duration. The City will provide the Union with a biannual list by department of all contract workers or vendors who are contracted by the City who perform work for the City. The City will make a reasonable effort to identify the names of the vendors on the list and the nature of the work provided by each vendor. ARTICLE IV - STEWARDS Section 1 - Union Officers. The Union agrees to notify the Director of Human Resources of those individuals designated as Union officers and stewards who receive and investigate grievances and represent employees before Management. Alternates may be designated to perform steward functions during the absences or unavailability of the steward. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 11 of 78 Section 2 - Number of Stewards. The number of stewards designated by the Union at a given time shall not exceed thirty-five (35). Section 3 - Release Time. It is agreed that, as long as there is prior notice as specified below to the Supervisor and the release of stewards will not unreasonably disrupt City operations, stewards shall be allowed reasonable release time away from their work duties, without loss of pay, to represent a unit employee or employees on grievances or matters within the scope of representation, including: a) A meeting of the steward and an employee, or employees of that unit related to a grievance. b) A meeting with Management. c) Investigation and preparation of grievances. Grievances may be transmitted on City time. All steward release time shall be reported on time cards. Section 4 - Advance Notification Before Leaving Work Location. The Union agrees that the steward shall give no less than one (1) full business day advance notification to his/her supervisor before leaving the work location, except in those cases involving an unforeseeable circumstance that requires immediate union representation where advance notice cannot be given or when the relevant supervisor otherwise allows less notice. A supervisor may deny such a request for release from duty if the steward is needed to ensure real time delivery of services that the steward provides for the public or internal City customers and another employee who normally provides such services is not available on a straight time basis to relieve the steward, or in a bona fide emergency. If such denial occurs, the union may request the release of another of its designated stewards to perform the representation duties involved. Such request shall be processed in accordance with the terms set forth in this section except that the requirement for a full business day advance notice to the replacement representative’s supervisor shall not apply. Nothing herein shall preclude the City from rescheduling a meeting it has scheduled, to facilitate the attendance of a steward who has requested release if, in the City’s judgment, such change can be undertaken without undermining the objectives of the meeting. Section 5 – Release Time. Four Union officers, who are City employees, shall be allowed a reasonable amount of release time off for purposes of meeting and conferring or meeting and consulting on matters within the scope of representation. All such time will be reported on timecards. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 12 of 78 Section 6 - Designated Union Space. Union stewards may utilize space in assigned desks for storage of Union materials. In the event stewards are not assigned desks the City will provide locker or other mutually agreeable space for storage of Union materials. Section 7 - Union Officers and Release Time. Four union officers, who are City employees shall be allowed a reasonable amount of release time off for monthly Labor/Management Meetings. ARTICLE V - REDUCTION IN FORCE Section 1 - Attrition. In the event of reductions in force, they shall be accomplished wherever possible through attrition. Section 2 - Advance Notice. When the City determines that layoffs are imminent resulting from reduction in force within the representation unit, the City will give the Union such advance notice as is reasonable under the circumstances. The notice will indicate the departments and divisions which will be affected and the circumstances requiring the layoffs. The City will furnish the Union with a current representation unit seniority list with notice of layoff. Section 3 - Order of Layoff. If the work force is reduced within a department, division, or office for reasons of change in duties or organization, abolition of position, shortage of work or funds, or completion of work, employees with the shortest length of service will be laid off first so long as employees retained are fully qualified, trained, and capable of performing remaining work. Length of service for the purpose of this article will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Length of service ties will be determined by lot in a method agreeable to both parties. Employees laid off due to the above reasons will be given written notice at least thirty days prior to the reduction in force. A copy of such notice will be given to the Union. Such employees shall be offered priority employment rights to regular positions which are requisitioned and for which the employees are qualified for a period beginning with notification and ending sixty (60) days following the reduction in force. Employees transferred or reclassified under this section will be assigned to the step in the new classification salary range closest to the employee's salary range at the time of reclassification. Employees laid off pursuant to this section shall receive the balance of all regular City compensation owed and severance pay equal to one month’s salary at the employee’s final rate of pay at termination. This does not include any amounts payable under Article V, Section 6, or PERS contribution refunds, if any. Section 4 - Seniority/Bumping Rights. Employees identified for layoff who have seniority (bumping) rights to their current or previously held classifications within the City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 13 of 78 representation unit must declare their intention to exercise these rights in writing and submit to the Human Resources Department within seven (7) working days after written notification of layoff, otherwise bumping rights will automatically terminate. Bumping may occur within the representation unit, only to the least senior incumbent of the current or a previously held classification. To bump, the employee must be fully qualified, trained, and perform all work in the position. For purposes of this section of the Agreement, the term "working days" shall mean Mondays through Fridays, exclusive of holidays. When an employee returns to work from a military protected leave, they will be reinstated as required by law. Should this result in bumping a current employee; the displaced employee will have bumping rights as set forth in this section. Section 5 - Re-Employment List. The names of employees laid off or who through bumping changed classification in accordance with the provisions of this Article shall be entered upon a re-employment list in seniority order. The employee with the greatest seniority on the re-employment list, including those who exercised their bumping rights, shall be offered reinstatement first. Such notice of reinstatement shall be in writing with a copy to the employee, Union and Chapter Chair. If a laid off employee waives reinstatement or fails to respond within ten (10) working days of receipt of the notice, the employee shall be removed from the reemployment list. The person with the highest seniority including those who exercised their bumping rights on a re- employment list for a particular classification when a vacancy exists in that classification shall be offered the appointment. Names shall be carried on a re-employment list for a period of two (2) years from the date of separation from City services or change of classification through bumping. Upon re-employment within the two-year period, the employee's hire date of record at the time of layoff will be reinstated. When qualifications are in question, the City and SEIU will meet and confer. Section 6 - Sick Leave Balances. Employees laid off pursuant to Section 2 who are reinstated to a regular position within sixty (60) days shall retain the sick leave balance they had at the time of layoff, unless they have received a sick leave payoff in accordance with Article XII. Section 7 - Hourly Employees Performing Duties. No representation unit employee will be laid off or remain on a re-employment list when hourly employees are performing substantially all the duties of the classification of the employee receiving a layoff notice or on a re-employment list. This provision shall not be applied to hourly positions which have been traditionally used for seasonal and part-time work. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 14 of 78 ARTICLE VI - PERSONNEL ACTIONS Section 1 - Probation. Each new regular or part-time employee, except employees in police dispatch positions, shall serve a probationary period of twelve (12) months, commencing with the first day of his/her employment. Each new regular or part-time employee in dispatch positions will serve an 18-month probationary period commencing with the first day of his/her employment. The probationary period shall be regarded as a part of the testing process and shall be utilized for closely observing the employee's work, for securing the effective adjustment of a new employee to his/her position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. At least one written performance appraisal will be given to each probationary employee on or before expiration of the probationary period. This appraisal will be given approximately at the end of the sixth month and another at the end of the twelfth month for employees in police dispatch positions. In the event of termination prior to successful completion of the probationary period, such terminated employee shall be given written notice of his/her termination with the reasons for the termination stated therein. The Human Resources Department shall, upon request, afford an interview in a timely fashion to the terminated employee for discussion of the reasons for termination. The employee may, upon request, be accompanied by a Union representative. The interview shall not be deemed a hearing nor shall it obligate the City to reconsider or alter the termination action. The parties agree that probationary employees shall have all rights under this Memorandum of Agreement, including full and complete access to the grievance procedure, save and except for instances of suspension, demotion or termination. Section 2 - Personnel Evaluations. Personnel evaluations will be given to employees annually as scheduled by Management. Personnel evaluations are not appealable through the grievance procedure but, in the event of disagreement over content, the employee may request a review of the evaluation with the next higher level of Management, in consultation with the Human Resources Department. For purposes of this review, the employee may be represented by the Union. Decisions regarding evaluation appeal shall be made in writing within ten (10) working days following the review meeting. Section 3 - Personnel Files. Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Union representatives. An employee or the Union shall be allowed, upon reasonable request, copies of materials in an employee's personnel file relating to a grievance. Records of disciplinary actions, including references in a performance evaluation, shall be removed from a personnel file upon written request by the employee after a period of four years, or sooner as City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 15 of 78 mutually agreed by Management and the employee so long as there have been no duplicated policy violations since the discipline (based on the Notice of Disciplinary Action) and the disciplinary action did not involve a violation of the City’s anti- harassment policy, or state and federal harassment and discrimination laws. Section 4 - Release of Information. The City will only release information to creditors or other persons upon prior identification of the inquirer and acceptable reasons for the inquiry. Information then given from personnel files is limited to verification of employment, length of employment and verification and disclosure of salary range information. Release of more specific information may be authorized by the employee. Section 5 - Promotional Opportunities. a) Posting. Promotional opportunities for classifications within the representation unit will be posted for at least ten (10) working days (Monday through Friday) prior to selection. Outside recruitment may be used for promotional openings and may begin at the time of posting, or any time thereafter. If, however, there are three or more qualified internal candidates within the department where the vacancy occurs, and those candidates successfully complete the selection process, outside candidates will not be considered. b) Internal Candidate Eligibility. All non-probationary representation unit employees are eligible to apply for posted promotional opportunities, except that Management may waive this requirement for all probationary employees within the department where the promotional opportunity occurs. c) Selection. The selection procedure for each promotional opening will be determined and administered by the Human Resources Department in consultation with the requisitioning department. Selection procedure and job description information will be available at the Human Resources Office at the time of posting. Efforts will be made to standardize tests and procedures where standardization is feasible and appropriate. Any tests used shall be reasonably predictive of success in the classification, and tests not be biased with respect to race, sex, sexual orientation, religion, creed, political affiliation, color, national origin, ancestry, or age. Selection procedures may include any or all of the following phases: 1) Application. Both inside and outside candidates must complete a City of Palo Alto application form specified by the Human Resources Department. Applications must be submitted to the Human Resources Office. 2) Screening. Applications will be screened by the Human Resources Department and, in some circumstances, a manager from the Department seeking to fill a City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 16 of 78 position to ascertain whether candidates meet minimum requirements as outlined in the job description. Internal candidates deemed not to meet minimum requirements may submit additional qualification information writing within three working days of notification of requirement deficiency. 3) Performance Testing. Performance tests, such as typing, machinery or vehicle operation, skills demonstration, physical agility, etc., will be qualifying. Pass-fail points will be announced in advance for qualifying tests. If requested in writing prior to the test, performance test may be witnessed by Union steward. 4) Written Tests. Written achievement or aptitude tests will be qualifying. Pass- fail points will be announced in advance for qualifying tests. 5) Interviews, Appraisals. Interviews may be conducted individually or by interview boards and will be qualifying. Interview boards shall be composed of qualified and unbiased people. Where interview boards are used, Management will include at least one bargaining unit employee on each board. If individual interview or an interview board is used, a majority of the individuals or board members must recommend a candidate in order for the candidate to qualify for appointment. Performance appraisals written by candidates' supervisors may be used as indicated in the selection procedure. d) Recommended Candidates. Candidates who successfully complete all phases of the selection procedure will be recommended to the appointing authority. e) Seniority. Seniority, for purposes of this Article, will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Seniority ties will be determined in favor of the employee with the lowest employee number last four digits. Exceptions to this subsection may be established by mutual agreement on a departmental or divisional basis. Such exceptions are listed in Appendix G. f) Appointment. The appointing authority will make appointments from among those recommended candidates who are most qualified as determined by objective review of selection procedure results and background materials. Where appointments are made from only internal candidates who are equally qualified as determined by objective review of selection procedure results and past performance, seniority will be the determining factor in promotional appointments. g) Violations. Any violation of this Article may be appealed to the Human Resources Director in Step III of the grievance procedure. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 17 of 78 Section 6 - Rights. Unit employees applying for a vacant equal or lower paying position shall have the same rights as unit employees applying for a promotion. Section 7 - Apprentice Positions. (a) The City shall establish apprentice positions wherever feasible. Length of apprenticeship, type of training, and pay levels shall be by mutual agreement. Where possible, apprentice positions will underfill regular positions so that incumbents may automatically progress to the classification for which they are training upon successful completion of apprenticeship. The City will meet and confer with the Union before adding any new apprenticeship programs during the term of this agreement. All apprenticeship programs are listed in Appendix B. Section 8 - Rotation. In assigning employees to regular or special shifts, transfer, standby, overtime, or vacation selection, ability to perform the work, length of service or equitable rotation shall determine the assignments. In accordance with this provision, more definitive rules may be arranged by mutual agreement of the Union and individual City departments. ARTICLE VII - PAY RATES AND PRACTICES Section 1 - Salary. The base salary rates and ranges for job classifications covered by this bargaining unit shall be increased as set forth in Appendix A to reflect salary increases for all positions in the unit and market adjustments to positions identified in the total compensation survey as under-market based on the survey results for base, cash, insurance and the normal cost of retiree medical (when such information is required by and verified through the CAFR), with total rates and ranges as set forth in Appendix A (Salary Schedule) attached hereto. Section 2 - Step Increases. Merit advancements from the first salary step to the second salary step shall be granted upon successful completion of probation and between second and subsequent steps at one-year intervals, if the affected employee has demonstrated continued improvement and efficient and effective service. For the purpose of determining step time requirements, time will commence on the first day of the month coinciding with or following entrance onto a salary step. Step increases shall be effective on the first day of the payroll period in which the time requirements have been met. Section 3 - Working Out of Classification. The term "working out of classification" is defined as a Management authorized full-time assignment to a budgeted/approved position on a temporary basis wherein all significant duties are performed by an individual holding a classification within a lower compensation range. Out-of- classification provisions do not apply to work assignments performed in connection with City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 18 of 78 specific predetermined apprenticeship or training programs, or declared conditions of public peril and/or disaster. Pay for working out of classification shall be as follows: a) Employees appointed to an "out of classification" will receive acting pay beginning the first day of the assignment and shall be paid for all hours worked in the higher classification provided employee works a minimum of four (4) hours. b) Where out-of-class appointments last for more than 90 days, and whenever feasible, an out-of-class appointment will be rotated among qualified interested employees in the work group. c) Employees will receive 5% premium pay for all assigned out of class pay for work within SEIU Classifications with the exception of lead assignments where the out of class pay will result in a 7% premium pay. d) Employee appointed to “out of class” assignments that are in the Management and Professional Compensation Plan or in Utilities Management and Professional Association for at least one workweek will receive up to a 10% premium pay. Section 4 - Classification Changes. a) During the course of this agreement, the Union and affected employees shall be notified in advance of any contemplated changes in classification description, wage range or steps. Such changes shall be subject to the meet and confer process. Such meet and confer process shall be concluded within no more than thirty (30) days following delivery of the City’s notice to the Union. If the Union and the City cannot reach agreement on the appropriate pay level from a job so reclassified, the Union may, within ten (10) City business days following the conclusion of the meet and confer process described above by delivery of written notice to the Human Resources Director, refer the dispute over the proposed wage range or steps to arbitration at Step IV of the Grievance Procedure set forth at Article XIX of this Memorandum of Agreement. Section 5 - Reclassification Requests. a) An employee or his/her representative may request in writing a re-evaluation of his/her job based on significant permanent changes in job content or significant discrepancies between job content and classification description. The request must be in writing, contain justification and may be made only on an annual basis during the period of September 10 through October 10. A statement by management that a job reevaluation request will be submitted with the departmental budget does not relieve an employee from the responsibility of City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 19 of 78 submitting his/her own request during this period. The Human Resources Director or his or her designee will initially respond to such requests within ninety (90) calendar days by notice to the employee and the union; however, this timeline may be extended if necessary. Such response shall include any reclassification to a different classification or changes in description that the City believes are warranted and any related changes in applicable pay range or steps. If meetings are held, the employee may request representation. If a reclassification is approved and results in an increase in salary, it shall be retroactive to the date the Employee or Union filed the request for the reclassification. b) If the employee or Union disagrees with the accuracy of the description of duties resulting from the study conducted pursuant to subsection (a) of this Section or with the wage range or steps assigned by the City as a result of the study, the employee or Union may, within ten (10) City business days of delivery of notice of such determination, appeal such decision under step IV of Article XIX, Grievance Procedure. c) In a dispute under Section 4(a) or section 5(b) above, the arbitrator shall render his or her decision on the appropriate wage range or steps within twenty-one (21) days after the initial hearing date. The same time line will be observed for disputes over the accuracy of the revised classification description. The parties will notify the arbitrator of this deadline at the time of the arbitrator’s selection. In reaching a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator shall base his or her award on the factors traditionally taken into account in the establishment of compensation. When deciding a dispute over the accuracy of the revised classification description under section 5(b) above, the arbitrator shall identify the modifications of the pre-existing classification necessary to accurately reflect the permanent changes, if any, that have been implemented. Upon receipt of the arbitrator’s award, the City shall implement the revised classification and wage range or steps as provided in the award except as provided under subsection 5(c) of this section below. Notwithstanding an arbitrator’s award pursuant to any appeal process, the City retains the right to forego implementing the changes and the proposed changes shall revert to the status quo as it existed before those changes in duties occurred or were proposed. d) An employee may submit a request for reclassification for the same classification no more than once every twenty-four (24) months. Section 6 - Assignment to a Lead Position. All vacancies in lead positions shall be filled in accordance with Article VI, Section 5. The pay range for the lead position shall be City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 20 of 78 seven percent above the pay step of the highest paid employee on the crew. Departmental exceptions for filling lead positions on a rotational basis for training and development purposes may be arranged by mutual agreement of the Union and individual City departments. Section 7 - Total Compensation and Survey Database. a) Management and the Union have agreed to a compensation survey database structure which identifies specific benchmark classifications for job families, classifications within the job families of each benchmark classification, survey agencies and survey classification matches. Survey Cities include: Alameda Hayward San Mateo Berkeley Mountain View Santa Clara Daly City Redwood City S. San Francisco Fremont San Jose Sunnyvale If the employer list will not permit the production of a survey report that includes data from at least four (4) employers that employ employees in a classification comparable to the classification surveyed by the City, neither party is precluded from bringing forward information on other employers in the relevant recruitment area that employ workers in a comparable classification so that data from at least five (5) surveyed employers will be included in the study, if feasible. Such employer may include any public or private employer. The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. The City will update the survey database and send the Union a copy six weeks before expiration of this agreement. This survey will be considered in connection with special adjustment proposals in successor agreement negotiations. By agreeing to a survey database, neither Union nor Management is under obligation to propose or agree to special adjustments. Section 8 - Direct Deposit The City shall directly deposit all paychecks for Unit employees in a financial institution of the employee’s choice that accepts direct deposits and does not charge the City a fee(s) for direct deposit service. In the event that the employee fails to designate a financial institution for direct deposit of his or her payroll check, the employee shall pick up the check personally in the City’s Administrative Services Department office on the next business day following payday at a pickup time designated by Administrative Services. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 21 of 78 ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY Section 1 - Work Week and Work Day. The standard workday for regular full time employees shall be one of the following: • Eight hours to be worked within a maximum of nine hours (five-day work week); or • Ten hours to be worked within a maximum of eleven hours (four-day work week); or • Nine hours to be worked within a maximum of ten hours for four days with a fifth day of four hours (four and one-half day work week); or • Within a fourteen-day period, nine hours to be worked within a maximum of ten hours for eight days and eight hours to be worked within a maximum of nine hours for one day, with the work week scheduled to begin so that forty hours are worked within each seven days of the fourteen-day period (9/80 plan, with forty- hour work weeks), or any other schedule that results in a 40-hour work week, or fits within the parameters of an FLSA 2080 Plan. The "9/80 plan" may not be used in any application that requires entitlement to FLSA overtime for working the regular work week. With the exception of the 9/80 plan as described above and flexible scheduling for Police Dispatchers, the standard work week for regular full time employees shall be forty hours to be worked within five consecutive days. Additional exceptions to the above are listed in Appendix C. The Union shall be notified of any further exceptions to this section in accordance with Article III, Section 8. The City and the Union agree that the availability of alternate/flexible work schedules is a valuable benefit in that they promote job satisfaction while also reducing traffic congestion and air pollution. Employees may utilize flexible arrangements to attend trainings, seminars, meetings, or for other mutually agreed upon situations. Any such change to work hours shall be approved by the supervisor in advance and should not result in overtime. During the term of this agreement, employees, subject to the conditions of their job assignment, may propose an alternate work schedule as listed under this Section. Such proposals must be made to the department head through the immediate supervisor. Serious consideration will be given to the feasibility and productivity of such proposals, however Management retains the right to determine scheduling needs. Section 2 - Overtime Work. a) Overtime work for all unit employees shall be defined as any time worked beyond the standard workday or beyond the standard work week. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 22 of 78 All time for which pay is received shall count as hours actually worked for the computation of regular overtime pay; however, non-productive time will not be included in computation of any additional FLSA premiums. b) Emergency overtime is defined as unplanned overtime work arising out of situations involving real loss of service or property or personal danger. Emergency overtime does not include: i. overtime work resulting from personnel replacement for purposes of maintaining scheduled staffing; ii. overtime work which is planned in advance; iii. overtime work resulting from being held over for up to four hours to finish work performed during the regular shift. c) Compensation to employees working overtime will be in the form of additional pay at the rate of one and one-half times the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one-half hours for each hour of overtime worked, subject to the limitations of applicable state and federal laws. Two times the employees’ applicable hourly salary will be paid for billable customer convenience overtime and emergency overtime as defined in subsection (b) above) Employees may elect at any time to cash out compensatory time off hours or roll into vacation time, up to applicable maximums. These elections must be made via the Compensatory Time Cashout Form submitted to payroll and will take place the following pay period, if received by the form’s due date. Any compensatory time off hours not taken, allocated, or cashed out will be automatically cashed out once a year during the first pay period in April. d) When an employee is required to work 6 or more hours of overtime (either emergency or pre-arranged) during the 16 hour period immediately preceding the beginning of the employee’s regular shift on a workday, the employee shall be entitled to an nine (9)hour rest period before returning to work. If the rest period overlaps into the second half of the work day, the employee may be given (with supervisor approval) the remaining time off (up to a maximum of 3 hours) at the straight time rate of pay. Any portion of the rest period falling within the employee’s work shift will be considered as hours worked and compensated at the straight time rate. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 23 of 78 e) If non-emergency overtime is canceled without at least 40 clock hours notice, the City shall pay the affected employees two (2) hours' pay at time and one- half. f) Employees working overtime who are too fatigued to continue or return to work, for safety reasons will be released from duty without compensation. g) Part-time Employees. Authorized hours worked by an employee in a budgeted, part-time position in excess of the scheduled hours of work of the position shall be compensated at the employee’s applicable hourly rate up to the maximum of non-overtime hours in the work period applicable to the employee. If a part- time employee works more than 80 hours in a pay period then overtime will be paid in accordance with the FLSA. Section 3 - Work Shifts. All employees shall be assigned to work shifts with scheduled starting and quitting times. Should conditions necessitate a change in starting and quitting times, the Union will be notified ten (10) working days in advance and permitted to discuss such changes with the City. This, however, shall not preclude the City's right to effect schedule changes dictated by operational necessity. This section does not apply to overtime scheduling. Section 4 - City-Paid Meals. In accordance with City policy, the City of Palo Alto bases its meal reimbursement limits on the U.S. General Services Administration (GSA) per diem rates. Those rates are adjusted every October. For overnight travel per diem rates, the City reimburses based on the rates applicable to the destination of travel, as provided by the GSA at http://www.gsa.gov/portal/category/100120. For non-travel meals, the City will reimburse up the maximum GSA rates for the Palo Alto area. Receipts are required to back-up these expenses. a) Emergency overtime meals. For purposes of this section, emergency overtime is defined as unplanned overtime arising out of situations involving real loss of service or property or personal danger. The City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area and will provide meals in the following emergency overtime situations: 1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR, City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 24 of 78 2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR, 3) When an employee is called out two hours or more before a regularly scheduled day shift and works the regularly scheduled shift, he/she will be entitled to breakfast and lunch. Lunches will be consumed on employee's own time. No in-lieu pay will be made for meals not taken. This sub-section does not apply if already covered in Section 4(a)(1) above. 4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. b) Non-emergency overtime meals. The City will provide meals for personnel assigned to non-emergency overtime work where the assignment extends two hours after the regular or overtime shift end and at intervals of five hours thereafter. c) With regard to (a) and (b) above, the City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area . Where possible, the City will arrange purchase orders at mutually agreeable restaurants. The time necessarily taken to consume a meal provided under this section shall be considered as time worked to a maximum of one hour, except as noted in (a) (3). d) With regard to (a) and (b) above, in the event an employee is to be provided a meal or meals pursuant to this section and such meal(s) are not provided due to working conditions, the employee shall have the option of receiving for each meal not provided an additional one hour of overtime compensation in lieu of such meal. This hour will not be considered as time worked or part of the rest period, but will be applied to qualify for the rest period. e) Emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in an emergency overtime situation involving real or potential loss of service or personal danger. 1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 25 of 78 2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. 3) When an employee is called out two hours or more before a regularly scheduled shift. The employee will be entitled to two meals, the second meal will be consumed on the employee's own time. No in-lieu pay will be made for meals not taken. 4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. f) Non-emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in non-emergency situations where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. If the City is unable to provide a meal, the City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area. This policy only applies when an employee is held over, either voluntary or mandated, on duty beyond a scheduled regular or overtime shift. Section 5 - Break Periods. All employees shall be granted a break period or coffee break limited to 15 minutes during each four hours of work. Departments may make reasonable rules concerning break period scheduling. Break periods not taken shall be waived. Section 6 - Clean-Up Time. All employees whose work causes their person or clothing to become soiled shall be provided with reasonable time before lunch and at shift end for wash-up purposes. Section 7 - Standby Pay, Call-Out Pay. a) Standby Compensation. Employees performing standby duty shall be compensated at the daily rates established below: Monday through Friday $70 Saturday, Sunday, Holidays $100 In the event of a declared City emergency, this section applies to standby assigned in accordance with applicable department policy. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 26 of 78 b) Minimum Call-Out Pay. Employees not otherwise excluded from receiving overtime pay who are called out to perform work shall be compensated for at least two hours' pay from the time of the call-out for each occurrence at the appropriate overtime rate. The two-hour minimum does not apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two-hour minimum will apply. Section 8 - Night Shift Premium. Night Shift premium is paid at a rate of 6% of an employee’s base hourly rate. Night Shift premium is paid only for hours actually worked between 6:00 p.m. and 8:00 a.m. Employees who regularly work night shifts shall receive appropriate night shift premiums, relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation. In order to be eligible for night shift premium, an employee must meet the following criteria: a) Be assigned to a shift on a regular basis which is scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.; b) Or be assigned to work another employee’s regularly assigned shift which is scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.; c) Or if your schedule is temporarily changed under Section 3 of this article which is scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m. The following are excluded from eligibility for night shift premium: a) Overtime hours; b) Alternate work schedules at an employee’s request which overlap with the hours of 6:00 p.m. and 8:00 a.m. Section 9 - Bilingual Premium. $50 per pay period shall be paid to a bilingual employee whose abilities have been determined by the Human Resource Director as qualifying to fill positions requiring bilingual speaking and/or writing ability when the employee regularly performs such duties. The Human Resource Director will determine the number, timing, location and duration of the assignments receiving the additional pay provided herein and which languages are needed. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the designation of positions will be referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. Human Resources will respond to the employee within sixty calendar (60) days after receipt of request. Upon approval by the Human Resources Director, the City is required to arrange for language testing within four (4) months of the approval. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 27 of 78 Section 10 - Communications Training Officer (CTO) Compensation. Public Safety Dispatchers and Chief Public Safety Dispatchers identified by Management to work as a Police Officers Standards and Training (POST) certified CTO will be compensated at a premium pay rate of five (5) percent. The premium pay is provided only for those hours spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center. ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES Section 1 - Uniforms. a) The City will provide uniforms, coveralls or shop coats on a weekly basis, or as otherwise furnished, for the following jobs and/or classifications and any positions necessary or required as determined by management. Animal Control Officer Assistant Storekeeper Associate Engineer - Pretreatment Auto Service Mechanic Building Service Person - Lead Building Service Person Cathodic Technician Cement Finisher - Lead Cement Finisher Chemist Community Service Officer (CSO) Electrical Assistant Electrician Apprentice Electrician Lead Engineering Technician III - Refuse Equipment Operator Equipment Operator - Lead Facilities Carpenter Facilities Electrician Facilities Maintenance - Lead Facilities Mechanic Facilities Painter Field Serviceperson Gas System Shop/Field Repairer Gas System Technician I Gas System Technician II Golf Course Equipment Mechanic Golf Course Maintenance Person City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 28 of 78 Heavy Equipment Operator - Lead Heavy Equipment Operator Industrial Waste Inspector Industrial Waste Investigator Instrumentation Electrician Laboratory Technician, Water Quality Control Line Person/Cable Splicer Line Person/Cable Splicer - Lead Mail Services Specialist Maintenance Mechanic/Maintenance Mechanic, Water Quality Control Mechanical Unit Repairer Meter Reader Meter Reader – Lead Mobile Service Technician Motor Equipment Mechanic - Lead Motor Equipment Mechanic Offset Equipment Operator - Lead Offset Equipment Operator Park Maintenance Assistant Community Services Officer Park Maintenance Person Park Crew - Lead Park Maintenance - Lead Park Ranger Parks & Open Space Assistant Police Records Specialist Refuse Disposal Attendant Senior Chemist Senior Industrial Waste Inspector Senior Industrial Waste Investigator Senior Instrumentation Technician Senior Operator, Water Quality Control Senior Mechanic, Water Quality Control Senior Park Ranger Sprinkler System Repairer Street Maintenance Assistant Storekeeper Storekeeper-Lead Street Sweeper Operator Traffic Control Maintainer - Lead Traffic Control Maintainer II Traffic Control Maintainer I Tree Trimmer-Line Clearer City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 29 of 78 Tree Maintenance Assistant Tree Trimmer-Line Clearer Assistant Tree Trimmer-Line Clearer - Lead Tree Maintenance Person Truck Driver Utilities Compliance Technician Utility Field Service Representative Utility Installer/Repairer Utility Installer/Repairer Assistant Utility Installer/Repairer – Lead Utility Locator Water Meter Cross Connection Technician Water System Operator - Lead Water System Operator Water System Operator I Water System Operator II Water Quality Control Plant Operator b) Coveralls will be made available for occasional use as needed to protect clothing for the following classifications and any positions necessary or required as determined by management. Building Inspector Building Inspector Specialist Building Service Person - Lead Cable Splicer Assistant Chief Electric Underground Inspector Electrical Assistant Electrician Facilities Mechanic/Painter Heavy Equipment Operator Lineperson/Cable Splicer Park Ranger Senior Park Ranger Utility Field Service Representative Sprinkler System Repairer Utility Installer Assistant Utility Installer/Repairer Utility Installer/Repairer - Lead c) Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 30 of 78 d) Employee clothing seriously damaged or destroyed in conjunction with an industrial injury will be reasonably replaced by the City. Any other claims alleging City liability may be filed with the City Attorney. e) Except in the Utilities Division, the City will make available, as an alternative to the shirts currently provided under Section 1(a), six (6) cotton polo shirts. Employees in the Utilities Division will be provided with six (6) long-sleeve shirts and two polo shirts. Employees will be responsible for laundering the shirts. Damaged or otherwise unwearable shirts will be returned to the employee’s supervisor and replaced by the City. f) Employees are responsible for laundering Park Ranger and Senior Park Ranger uniforms. g) The City will meet and confer with the Union regarding any mandated changes to uniforms. h) In accordance with California Code of Regulations (C.C.R.) section 571(a) the estimated value of City provided uniforms is $21.28 per pay period. Section 2 - Tool Allowance. a) Mechanics in Equipment Maintenance, Park Maintenance Lead, Motorized Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance of $610 annually upon verification of purchase by the employee. b) Parties will meet and confer to determine if additional classifications require tool allowance. Section 3 - Shoe Allowance. a) Safety Shoes. The City will pay the vendor or reimburse full-time employees up to $400 per fiscal year for the cost of job-related safety shoes upon verification of such purchase by the employee. b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related walking shoes for any positions necessary or required as determined by management including Meter Reader and Meter Reader-Lead, in an amount not to exceed $300.00 per year. A walking shoe is a durable work shoe/boot (non steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water resistant; lightweight and durable; and also provides hard surface cushioning. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 31 of 78 Section 4 – Certifications. The parties agree to retain the current list of required certifications below. Employees who are required to maintain commercial driver's licenses shall have costs for medical examinations paid by: a) Completing an examination through their PEMHCA provider. After benefits have been paid by the PEMHCA provider, upon presentation of proper documentation, the City will reimburse any remaining costs, or b) Completing an examination at the Workforce Medical clinic or other City designated clinic. Employees may use paid leave for attendance at scheduled medical examinations. Employees shall be permitted to use up to two hours of regular City-paid time for attendance at biannual medical examinations. The scheduling of such time shall be preauthorized by the employee’s supervisor. c) The City will pay special registration and/or certification fees which are required by Management. During the term of this agreement, the City and the Union may, by mutual agreement, review, add or delete classifications and/or required certifications listed below: Classification Requirement Facilities Technician Aquatics Facility Operator Certificate Building Inspector/ Buildg Inspection Specialist Certificate as stated in job description Cathodic Technician Corrosion Technician by the National Assoc. of Corrosion Engineers Engineer Professional Professional Engineer Cert. (for step E) Equip Maint Serv Pers. Forklift Operator Cert. (OSHA-approved) Golf Course Maint Pers. Qualified Applicators' License Heavy Equipment Operator Crane Operation Certificate (Utilities and Electric) Indust. Waste Inspector Backflow Prevention Device Tester Inspector Field Services, Utilities D1 (DOH) Hired before July 1, 2012 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 32 of 78 Installer/Repairer Series D1 (DOH) Maintenance Mechanic Crane Operator Certification (Water Quality) Mech. Unit Repairer Welding Certificate Motor Equip Mechanic and Lead EMS, ASE Planner, Associate Planner AICP Senior Planner Public Safety Dispatcher POST Basic Dispatcher EMD Public Safety Dispatcher, Lead POST Basic Dispatcher POST Supervision EMD Senior Operator, WQC Grade III Wastewater Treatment Plant Operator Certification Surveyor, PW Licensed Land Surveyor Tree Trimmer/Line Clearer Certified Tree Worker and/or Qualified Line Clearance/Tree Trimmer Cert. (OSHA-approved) Tree Trimmer/Line Clearer-Lead Certified Arborist Utilities Install/Rep series Polyethylene Fusing Cert. Gas Operator Certification (DOT) Veterinarian Technician Animal Health Tech. Certification Water System Operator I Grade DI – Water Distribution Operator Water System Operator II Grade DII – Water Distribution Operator & Grade TII – Water Treatment Operator City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 33 of 78 Senior, Water System Operator Grade DIII – Water Distribution Operator & Grade TIII Water Treatment Operator WQC Plant Operator I Grade I Wastewater Treatment Operator Certification. WQC Plant Operator II Grade II Wastewater Treatment Operator Certification WQC Plant Operator Trainee Grade I Wastewater Treatment Operator Certification Water Meter Cross- Connection Technician Backflow Prevention Tester Certification d) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver's License in accordance with the California Vehicle Code and applicable laws prescribed by the Department of Transportation. e) Pipeline Welding Assignment. The City provided a 4% premium in base compensation to the Utility Installer-Repairer and the Installer-Repairer Lead positions in 2006 that met DOT certification requirements and are, or were, assigned these duties. The Utility Installer-Repairer and Utility Installer-Repairer Lead positions that fail to maintain current certifications will not receive a 4% premium on their base pay. Positions assigned these duties and designated by Management to receive this premium will not exceed five (5) Utility Installer/Repairer(s) and Installer/Repairer Lead(s). If the certification is required in the job description, certification must be maintained. In accordance with their job description Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shall receive 4% premium to their base pay for pipeline welding. The 4% premium for Maintenance Mechanic- Welding was rolled into base wages. f) Building Inspector and Building Inspector Specialists. Upon successful completion of probationary requirements, the City will pay Building Inspectors and Building Inspector Specialists a one (1) percent of base salary one-time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year or two payments in a career. The City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 34 of 78 Building Inspector and Building Inspector Specialist Job Descriptions specify current requirements and the Union and City will agree on a list of appropriate certifications eligible for the premium. Premiums will not be paid if certification is not maintained. g) Water and Wastewater System Operator Certification. Employees classified in the following positions: Water Quality Control Plant Operators I and II, Senior Operator Water Quality Control, Laboratory Technician Water Quality Control, Chemist, Senior Chemist, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job Series may be eligible to receive a 1% base pay premium for certifications required by the Department of Health, California Water Environment Association and/or the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (1) percent for one (1) certification that is above those listed in their job description. An employee who qualifies for this payment shall be paid 1% of the employee’s annual base salary once per year. The employee shall be responsible for providing the City with written documentation that the employee has obtained and is maintaining the qualifying certification on an annual basis. Premiums will not be paid if certification is not maintained. Eligible employees should verify certification will qualify for the premium before attempting certification. The Union and the City will update the job descriptions to reflect newly required certifications with no further adjustments to base salary. Payments will not exceed a maximum of one percent per year, and will take effect in the pay period following the verification of certification. All costs for obtaining certifications above what the job description requires will be the responsibility of the employee and may be paid for by using the City’s tuition reimbursement program. h) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification. Training to be provided by the City. i) Crane Certification. A Heavy Equipment Operator, Line Person, Line Person Lead, or Maintenance Mechanic who possesses the legally required certification for operation of any crane will receive an increase of one percent (1%) of their base rate effective upon the ratification and adoption of this MOU by the City Council, or upon attainment of the certification, whichever is later. Heavy Equipment Operator (Electric) must possess a Crane certification regardless of hire date. Any employee hired on or after July 1, 2012 may be required to obtain and possess crane certification. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 35 of 78 For any other employee hired prior to July 1, 2012 crane certification shall be desirable (not required) except under the following circumstances: a) There are insufficient employees in the classification (Heavy Equipment Operator [exclusive of Electric], Lineperson, Lineperson Lead or Maintenance Mechanic) who possess the certification to perform the work; b) The Manager has sought volunteers and no employee in the classification has volunteered to train for the certification; c) All things being equal, the manager has selected the least senior employee in the classification who is judged by the City most likely to successfully complete the training and obtain crane certification. d) The Manager will allow up to three attempts to pass the crane certification for any employee hired before July 1, 2012 who has been involuntarily assigned to acquire the crane certification. Related training and test costs shall be borne by the City. No employee hired before July 1, 2012 shall be disciplined or discharged for failure to acquire a Crane certification. Section 5 - Weather Protection. The City will provide rainy weather foot protection and one summer hat for the classification of Community Services Officer. ARTICLE X - HOLIDAYS Section 1 - Fixed Holidays. Except as otherwise provided, employees within the representation unit shall have the following fixed holidays with pay: January 1 Third Monday in January (Martin Luther King Day) Third Monday in February Last Monday in May July 4 First Monday in September Second Monday in October Veterans' Day, November 11 Thanksgiving Day Day after Thanksgiving December 25 Either December 24 or December 31 (see below) City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 36 of 78 Employees shall be excused with pay for the full work shift on either December 24 or December 31, provided, however, that City facilities remain open with reduced staffing levels, that Management retains the right to determine work schedules, and that neither day be considered a holiday for purposes of premium pay. If employees are not excused pursuant to this provision, one shift of vacation credit will be added to their vacation accrual. In the event that any of the aforementioned days, except for December 24 or December 31, falls on a Sunday, the following Monday shall be considered a holiday. In the event that any of the aforementioned days falls on a Saturday, the preceding Friday shall be considered a holiday. If December 24 and 31 falls on Sunday, then the preceding Friday will be designated for purposes of the holiday. Exceptions to this provision are listed in Appendix E. Section 2 - Pay for Fixed Holidays. a) All employees shall be paid a full day's pay at their regular straight time base hourly rate for all fixed holidays as defined herein. b) An employee must be in a pay status on the workday preceding the holiday to be eligible to be compensated for a holiday. This subsection does not apply to an employee who is on an unpaid medical leave of absence of less than five (5) days. Section 3 - Work on Fixed Holidays. Any employee required to work on a fixed holiday shall be paid time and one-half for such work in addition to his or her regular holiday pay. Work on a fixed holiday beyond the number of hours in a regular shift shall be compensated at double time and one- half. Employees who work a schedule where a regular day off falls on a holiday will accrue the holiday hours they would have normally worked on that day. If an employee has more than four (4) days of holiday time accrued the City will automatically cashout these additional hours. This does not impact the employee’s ability to cashout or transfer to deferred comp holiday hours below the four (4) day threshold. Section 4 - Variations in Work Week. a) An employee whose work schedule requires that his or her regular days off be other than Saturday and/or Sunday shall have an additional day off scheduled by the department in the event a fixed holiday falls during his or her regularly scheduled day off. Every attempt will be made to schedule the day on a mutually agreeable basis. If the day cannot be so scheduled, the employee shall be paid for the day at the straight time base rate. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 37 of 78 b) Fixed holidays which fall during a vacation period or when an employee is absent because of illness shall not be charged against the employee's vacation or sick leave balance. c) If conditions necessitate a departmental closure impacting employees’ regular schedules, management will work with employees to provide assignments unless the employee chooses to take unpaid time off or use paid time off in the form of vacation, personal business or compensatory time. Section 5 - Floating Days Off Employees hired on or before July 1, 2012 will be credited with 3 floating holidays to be scheduled for use by mutual agreement by employee and supervisor. In no event will FH be convertible to cash or other benefits in lieu of Floating Holidays. Effective at the close of business 6/30/13 one floating holiday will be eliminated. On July 1, 2013 and every July thereafter, employees will be credited with two (2) Floating Holidays to be scheduled in the same manner as noted above. Employees hired after 7/1/12 will not receive any floating holidays. Floating Holidays not used by the end of the fiscal year will be deemed forfeited. ARTICLE XI - VACATIONS Section 1 - Vacation Accruals. Each employee shall be entitled to an annual paid vacation, accrued as follows: a) First day of continuous service through the last day of the fourth (4th) year: 80 hours vacation per year. b) First day of the fifth year of continuous service through the last day of the ninth (9th) year: 120 hours vacation per year. c) First day of the tenth (10th) year of continuous service through the last day of the fourteenth (14th) year: 160 hours vacation per year. d) First day of the fifteenth (15th) year of continuous service through the last day of the nineteenth (19th) year: 180 hours vacation leave per year. e) Twenty (20) or more years: 200 hours vacation leave per year. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 38 of 78 Employees may accrue up to three times their annual vacation leave without loss of vacation days. In the event the City is unable to schedule vacation and, as a result thereof, the employee is subject to loss of accrued vacation, the City shall extend the vacation accrual limit up to one year, in which time the excess vacation must be scheduled and taken. As long as there is no interference with departmental operations, there shall be no unreasonable restriction of increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave. Section 2 - Holiday Falling During Vacation. In the event a fixed holiday as defined in Article X falls within an employee's vacation period, which would have excused the employee from work (and for which no other compensation is made), an additional workday for such holiday shall be added to the vacation leave. Section 3 - Illness During Vacation. When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. Section 4 - Accrued Vacation Pay for Deceased Employees. An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to his/her estate within thirty days. This proration will be computed at his/her last basic rate of pay. Section 5 - Effect of Extended Military Leave. An employee who interrupts service because of extended military leave shall be compensated for accrued vacation at the time the leave becomes effective. Section 6 - Vacation at Termination. Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Section 7 - Vacation Cash Out. Once each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours, to a maximum of 120 hours, provided that the employee has taken 80 hours of vacation in the previous 12 months. 1. To be eligible for cash out vacation, employees must pre-elect the number of vacation hours they will cash out during the following calendar year up to maximum of 120 hours, prior to the start of that calendar year. The election will apply only to vacation hours accrued in the next tax year and eligible for cash out. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 39 of 78 2. The election to cash out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash out vacation hours must cash out the number of accrued hours pre-designated on the election form provided by the City. 3. Employees who do not pre-designate or decline a cash out amount by the annual deadline established by the City will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash out vacation hours in the next tax year. 4. Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to Payroll. Payroll will complete the cash out upon request, provided the requested cash out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash out is not available at the time of cash out request, the maximum available will be paid. 5. For employees who have not requested payment of the elected cash out amount by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after the payroll date including November 1. ARTICLE XII - LEAVE PROVISIONS Section 1 - Sick Leave. a) The City shall provide each employee with paid sick leave, earned on a daily basis and computed at the rate of 96 hours per year, with no limits on amounts that may be accumulated, except that for employees hired after July 1, 1983, sick leave accrual accumulation shall be limited to 1,000 hours and subsections (a)(1) and (a)(2), shall not apply. Payment for accumulated sick leave at termination shall be made only in the following circumstances: 1) Eligible employees who leave the municipal service or who die while employed and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their base hourly rate of pay at termination. 2) Full sick leave accrual will be paid in the event of termination due to disability. b) Use of Sick Leave. Sick leave shall be allowed and used in cases of actual personal sickness or disability, medical or dental treatment, or as authorized for personal City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 40 of 78 business. Up to nine days sick leave per year may be used for illness in the immediate family, including registered domestic partner. A new employee may, if necessary, use up to forty-eight (48) hours of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. c) An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her option, choose either to receive the long term disability benefits or to utilize the remainder of his/her accrued sick leave prior to applying for long-term disability benefits. d) Sick leave will not be granted for illness occurring during any leave of absence unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. e) Return to Work With Limited Duty. Upon approval of department management and the City Risk Manager, an employee may return to work for doctor-approved limited duty. Approval for return to work shall be based upon department ability to provide work consistent with medical limitations, the location of the work assignment, and the length of time of the limitations. The City doctor may be consulted in determining work limitations. f) If an employee’s illness results in an absence from work for more than three (3) consecutive work days or twenty-four (24) continuous hours, whichever is greater, a doctor’s certificate or other proof of illness may be required. The department head or designee may require a doctor’s certificate or other proof of illness when there is reasonable cause of misuse. g) Leave Committee During the term of this Agreement, upon request by either party, the parties will meet with the goal of developing alternate leave models, such as “Paid Time Off” or other similar benefits. Any changes implemented during the term of this agreement must be by mutual agreement only. Section 2 - Bereavement Leave. Leave of absence with pay of three days shall be granted an employee by the head of his or her department in the event of death in the employee's immediate family, which is defined for the purposes of this section as wife, husband, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, mother, step-mother, mother-in-law, father, step-father, father-in-law, brother, brother-in-law, City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 41 of 78 step-brother, sister, step-sister, sister in- law, grandmother, grandmother-in-law, grandfather, grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Request for leave with pay in excess of three (3) days shall be subject to the written approval of the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee's need for additional time. Section 3 - Military Leave. The provisions of the Military and Veterans' Code of the State of California shall govern the granting of military leaves of absence and the rights of employees returning from such leaves. Consistent with the Military and Veterans Code, the City of Palo Alto shall pay employees in SEIU bargaining unit their regular salary, salary differential, and all available benefits for up to thirty days per calendar year. Section 4 - Leave Without Pay. a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. b) Family Leave. Family leave will be granted in accordance with applicable state and federal law. c) Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency, Union business or when such absences would not be contrary to the best interest of the City. Non-disability prenatal leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require that employee to use paid leave credits in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 5 - Jury Duty and Subpoenas. Employees required to report for jury duty or to answer subpoenas as a witness in behalf of the State of California or any of its agencies shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received from such duties other than mileage or subsistence allowances within thirty (30) days from the City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 42 of 78 termination of jury service. When an employee returns to complete a regular shift following time served on jury duty or as a witness, such time falling within the work shift shall be considered as time worked for purposes of shift completion and overtime computation. In determining whether or not an employee shall return to his or her regular shift following performance of the duties, reasonable consideration shall be given to such factors as travel time and a period of rest. When a combination of City work time and jury duty equals 14 or more hours in the 24-hour period immediately before the employee's shift starting time, the employee will be allowed a rest period of nine hours. Any portion of the rest period falling within the employee's work shift will be considered as hours worked and compensated at the straight time rate. This provision does not apply to conditions of bona fide emergency. Bona fide emergency conditions are conditions involving real or potential loss of service or property or personal danger. Section 6 - Time Off to Vote. Time off with pay to vote in any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 7 - Disapproval of Leave of Absence. In case of disapproval of extension, revocation or cancellation of an existing leave of absence, notice shall be sent by certified mail, return receipt requested, to the employee stating the date of such action, the reason and a specific date to return to work, which is not less than five working days from date indicated on return receipt. Section 8 - Personal Business Leave Chargeable to Sick Leave. All employees shall be granted up to thirty (30) hours personal business leave per calendar year, chargeable to sick leave. The employee need not disclose the reason for the personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management, and such approval shall not unreasonably be denied. Section 9 - Return to Assignment. The department shall make every effort to ensure that employees resuming work following a leave pursuant to Sections 1- 8 shall be returned to the assignment, shift, and/or work location held immediately prior to the leave. If the employee cannot be so assigned, he or she shall, upon request, be granted a meeting with department management to discuss the reasons for the change. Upon request, the employee shall be afforded Union representation at such a meeting. ARTICLE XIII - WORKERS' COMPENSATION INSURANCE Section 1 - Industrial Temporary Disability. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 43 of 78 a) While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall be paid full base salary for a period of not to exceed fifty-seven (57) calendar days, unless hospitalized, in which case employees shall be paid full base salary for a period not to exceed sixty (60) days from date of injury. b) For any temporary disability continuing beyond the time limits set forth in (a) above, employees shall be paid two-thirds (66 2/3%) of their full base salary at the time of injury for the duration of such temporary disability in conformance with the State law. c) During the period of temporary disability, an employee's eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees. In case of Subsection (a) above, the employee will continue to accrue vacation and sick leave benefits. In the case of Subsection (b), sick leave and vacation benefits shall not be accrued. Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. Vocational Rehabilitation will be made available to employees who have suffered permanent disability as a result of an injury or illness sustained in the course and scope of employment before 1/1/04. For injuries on or after 1/1/04 qualified employees are entitled to supplemental job displacement vouchers in accordance with the California Labor Code, Division 1, Department of Industrial Relations and Division 4, Workers’ Compensation and Insurance, the Americans with Disabilities Act (ADA), and the City of Palo Alto's Workers’ Compensation Program. ARTICLE XIV - BENEFIT PROGRAMS Section 1 - Health Plan. a) Active Employees During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Effective January 1, 2019: • Employee only: $804 • Employee plus one: $1,606 • Employee Family: $2,088 Effective January 1, 2020: City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 44 of 78 • Employee only: $840 • Employee plus one: $1,680 • Employee Family: $2,180 Effective January 1, 2021, the City will increase its maximum contribution by 50% of average of the increases to Kaiser and PERS Choice. Provided however, that the total increase of the maximum City contribution shall not exceed 4%. The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. PEMHCA minimum changes per statutory determination and has historically been increased by $3 dollars each year. Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the amount listed in the Maximum City Contribution described above. b) Health Plan Coverage for Future Retirees Hired Before January 1, 2005. Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees’ Medical and Hospital Care Act. Effective 1/1/07 the City’s monthly employer contribution for each retiree and their eligible family members, as defined by the CalPERS Health Benefits Program, shall be the amount necessary to pay for the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered to the SEIU employee (among the existing array of plans). However, the City contribution for an employee hired before January 1, 2005 who retires on or after April 1, 2011 the City contribution for the retiree and their eligible family members, as defined by the CalPERS Health Benefits Program, shall be the same contribution amount it makes from time to time for active City employees. The City provided active unit employees who were hired before January 1, 2005 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. c) PERS – Health Benefit Vesting For Future Retirees Effective January 1, 2005 or any existing employee who opts into this vesting schedule. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 45 of 78 The CalPERS vesting schedule set forth in Government Code section 22893 will apply to all SEIU employees hired on or after January 1, 2005 or any existing employees who opt into this vesting schedule. Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional year of service credit will increase the employer contribution percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for eligible family members, as defined by the CalPERS Health Benefits Program, will be 90% of the specified employer contribution. The City of Palo Alto's health premium contribution will be the minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. d) Retiree Health Committee During the term of this agreement the parties will maintain a Retiree Health Committee. The Union shall appoint two (2) Union members (and one Union staff person) to serve on this committee who shall receive reasonable release time to attend Retiree Health Committee meetings. Changes to this section during the term of this Agreement will be by mutual agreement only. The parties agree that Retiree Health Committee meetings may be attended by representatives of other City labor groups. e) Coverage for Domestic Partners. Domestic Partnership Registered with the California Secretary of State. Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Registered with the California Secretary of State. Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for a stipend of two hundred and eighty four dollars ($284.00) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for reimbursement. f) Alternative Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any other non-City of Palo Alto employer- sponsored or association-sponsored group medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical plan insurance and receive cash payments in the amount of two hundred eighty-four dollars ($284) for each month City coverage is waived. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 46 of 78 Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or domestic partner and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284.00) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the employee’s failure to notify the City of a change in status. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. Section 2 - Dental Plan. a) The City shall continue to provide a self-funded dental program for the benefit of City employees and their eligible dependents. The City shall pay 100% of the required premiums for the program, except that benefits for regular part-time employees will be prorated as follows: Employees hired after January 1, 2005, who will work less than full time, will receive prorated premium costs for dental benefits in accordance with his/her percentage of a full-time work schedule. Part-time employees currently receiving full benefits will not be impacted. b) The City’s Dental Plan provides the following: City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 47 of 78 • Maximum Benefits per Calendar Year $2,000 per person. c) Effective July 1, 2001, dental implants in conjunction with one or more missing natural teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). d) Effective 1/1/07 the City will add composite (tooth colored) fillings in dental plan posterior teeth. e) Effective 1/1/07 the City will pay up to $2000.00 for Orthodontia coverage. Section 3 - Vision Care. The City shall continue to provide a self-funded vision care program for the benefit of City employees and their dependents. The City shall pay 100% of the required premiums for the program. The benefits of the vision care program shall continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan. Vision benefits for regular part-time employees hired or assigned to a part-time schedule will be prorated in accordance with his/her percentage of a full- time work schedule. Section 4 - Life Insurance. The City agrees to continue the Basic and Supplemental life insurance plan as currently in effect for the term of this Memorandum of Agreement. Section 5 – Long Term Disability Insurance. The City shall continue the long term disability insurance plan currently in effect for the term of this Memorandum of Agreement. For Plan A, the benefit is 66 and 2/3% of pre-disability earnings to the maximum benefit level of $4000.00 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $6,000 of monthly salary, less a credit of $11.17 per month to be paid by the City. For Plan B, the benefit is 60% of pre-disability earnings up to the maximum benefit level of $1800 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $2000 of monthly salary for Plan B. The City will pay premiums in excess thereof. Section 6 - Effective Date of Coverage for New Employees. For newly-hired regular employees, elected coverage will begin on the first day of the month following date of hire. Section 7 - Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 48 of 78 employee, but not both) and dependent children, if any, shall be covered by only one spouse. Section 8 - Deferred Compensation. The City shall continue to make available a Section 457 Deferred Compensation Plan to SEIU employees and will insure reasonable access to Deferred Compensation representatives for all interested employees. Section 9 – Dependent Care Assistance Program and Medical Flexible Spending Accounts. The City shall continue to provide a Dependent Care Assistance Program (DCAP) and Medical Flexible Spending Accounts (FSA) for employees that comply with Section 125 of the Internal Revenue Code. Calendar year limits are set by the IRS. All matters related to the FSA shall be excluded from the grievance requirements of this MOA (per side letter agreed to in 2011). a) Dependent Care Assistance Program: Can be used to pay for qualified day care (or dependent care) expenses with pre-tax dollars. b) Medical FSA: Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. The City will deduct the annual administrative fee through a payroll deduction (currently $4 as of 2015) or if the employee has unused FSA dollars from the prior calendar year, the City will apply those dollars to cover the administrative fee. Section 10 - Training Programs. a) Employees assigned by the City to attend meetings, workshops, or conventions of their professional or technical associations shall have their dues and reasonable expenses paid by departmental funds and shall be allowed to attend such workshops, meetings, and conventions on paid City time. b) City will reimburse for travel, meals and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee’s skills. Per City Policy and Procedure 1-02, the Pre-Travel Authorization Form should indicate expenses that will be paid. ARTICLE XV – RETIREMENT Section 1 - PERS Continuation. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 49 of 78 a) Pension Group A: 2.7% @ 55. The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 for employees hired before July 17, 2010. The Parties acknowledge that employees under this formula hired before July 17, 2010 are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code Section 20042. b) Pension Group B: 2.0% @ 60 – (Single Highest Year). For employees hired on or after July 17, 2010 and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Classic” CalPERS members), but before the adoption of the modified 2% at 60 formula described below, whichever is later, the City will continue to provide the 2% at 60 retirement formula (“2% at 60”). The Parties acknowledge that employees under the existing 2% at 60 pension formula are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code section 20042. c) Pension Group C: 2.0% @ 60 – (3 Highest Years). The City shall further amend its contract with CalPERS to provide miscellaneous “Classic” CalPERS members hired on or after August 1, 2013 with the CalPERS retirement formula two percent (2.0%) of final compensation at age sixty (60) with a final compensation calculation, for pension determination purposes, based on the employee’s three consecutive highest years of compensation earnable, as provided by Government Code section 20037. The City may delay the adoption or implementation of the foregoing amendment to the extent it deems such delay necessary to accommodate legal and administrative requirements. In such event, employees hired between and including August 1, 2013 and the day before the amendment’s implementation date will be placed in the 2% of final compensation at age 60 formula with single highest year earnable compensation as described above. d) Pension Group D: 2% @ 62. Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two percent at age 62 (2%@62) retirement formula with a three year final compensation period. Section 2 - Employee Share. Effective with the first pay period including July 1, 2012 employees in Pension Groups A, B and C described in Section 1 above shall pay 8% if enrolled in the 2.7%@55 benefit or 7% if enrolled in the 2%@60 benefit. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 50 of 78 Employees in Pension Group D shall pay the employee contribution required by the Public Employees’ Pension Reform Act, calculated at fifty percent (50%) of the normal cost. Section 3. Employer Share. Effective the first full pay period following December 1st, 2017, employees (Groups A-D) shall pay one percent (1.0%) of their salary toward the employer cost of retirement (in addition to the employee share) in accordance with Section 20516 of the California Government Code. Effective the first full pay period including December 1, 2020, employees in this unit (Groups A-D) shall pay an additional 1% of their salary toward the employer cost of retirement for a total of 2% (in addition to the employee share) contribution toward the employer share. This will result in SEIU employees in Groups A-D paying a total of two (2) percent of the employer share (in addition to the employee share) effective the first full pay period including December 1st, 2020. ARTICLE XVI - COMMUTE INCENTIVES AND PARKING Section 1 - Commute Incentive. It is the City’s interest to reduce single occupancy vehicle trips to the extent possible in order to address current traffic and environmental challenges. During the term of this agreement, the parties shall meet and confer on changes to the City’s commute incentive and parking program adopted by the City Council. Eligible employees may voluntarily elect one of the following commute incentives: a. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. b. Carpool. The City will provide $30 per month (taxable income) to each eligible employee in a carpool for 60% or more of their scheduled work days per month with two or more people. c. Bicycle. The City will provide $20 per month to eligible employees who ride a bicycle to work. This payment is available through the CCD web site in the form of a special Commuter Check (tax free) for bike equipment, gear or City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 51 of 78 repairs. This benefit cannot be combined with other commute benefits. d. Walk. The City will provide $20 per month (taxable income) to eligible employees who walk to work 60% or more of their scheduled work days. e. Transit or vanpool users. Tax-free incentives up to the IRS limit (currently $255/month) are available through the Commuter Check Direct (CCD) web site for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. f. Go Pass. The Go Pass program will offer civic center and other downtown- based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in all zones seven days per week. g. The City and Union agree to meet in Labor Management Committee to assess and improve the application of the telecommuting policy and option for employees. The deadline for registering with CCD and placing an online order is 8:59 p.m. on the 7th of each month, for the next month’s benefit. For example, employees wishing to order a transit pass by June must place their online orders with CCD by May 7th. Section 2 – Parking Lot Security – Municipal Service Center. The City will provide fenced and locked parking facilities for Municipal Service Center employees. Procedures will be established for entering and leaving the parking facilities. Section 3 – Bicycle Lockers and Motorcycle Parking. The City will provide bicycle lockers and motorcycle parking areas for City employees at mutually agreeable work locations. ARTICLE XVII - PHYSICAL EXAMINATIONS If any non-probationary employee who is required to have a City-provided physical examination not related to workers' compensation programs disagrees with the findings of the City-sponsored physician, he/she may consult with his/her own physician and, if his/her private physician's report conflicts with that of the City physician in terms of ability to work at his/her regular job, then he/she may request an evaluation of his/her problem through a third physician mutually agreed upon by the employee and the City. Cost for such examination will be equally shared and the decision of this physician concerning the continuing ability of the employee to perform his/her work in his/her regular job without exposing himself/herself to further injury as a result of his/her condition shall be the basis for returning the employee to his/her regular work. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 52 of 78 ARTICLE XVIII – SAFETY Section 1 - Health and Safety Provisions. The City shall furnish and use safety devices and safeguards and shall adopt use practices, means, methods, operations and processes which are reasonably adequate to render such employment and place of employment safe, in conformance with applicable safety regulations under the State Labor and Administrative Code sections. The City shall not require or permit any employee to go to or be in any employment or place of employment which is not safe. Section 2 - Union Cooperation. Union will cooperate with the City by encouraging all employees to perform their work in a safe manner. Section 3 - Safety Committees and Disputes. Safety committees composed of Management and Union stewards in the below listed organizations will meet no less than six (6) times annually to discuss safety practices, methods of reducing hazards, and to conduct safety training. This shall in no way remove the basic responsibility of safety from Management nor shall it in any way alter the responsibility of the employee to report unsafe conditions directly and immediately to his or her supervisor. Community Services Public Works Water-Gas-Wastewater Field Operations Electric Field Operations Water Quality Control a) A ten-member Citywide Union/Management safety committee with equal Union and Management membership will meet upon call to review safety and occupational health standards and practices, discuss overall City safety and health problems, and to act as an advisory group to the departmental safety committees. The committee shall review all departmental safety programs and recommend change where necessary. b) In cases of dispute over safe working conditions the employee will first report such unsafe conditions to his or her supervisor and every attempt will be made to rectify the problem at this level. The employee may contact his or her steward to assist in the resolution of the dispute. If the problem cannot be resolved the Risk Manager will be contacted and the problem will be addressed through the interpretation of the basic safety rules and regulations. Should the problem not be resolved at this step, the grievance procedure will be utilized. Safety grievances shall be submitted at Step III. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 53 of 78 c) The City will continue employee workplace evaluations in compliance with CalOsha, Title 8, section 5110. ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE Section 1 - General Provisions. The City and the Union recognize that early settlement of grievance or appeal of disciplinary actions is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or appeal of disciplinary action, or Union grievances as provided for below. In presenting a grievance or appeal of disciplinary action, the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Release time for investigation and processing a grievance or appeal of disciplinary action is designated in Article IV of this Memorandum of Agreement (MOA). Section 2 – Definitions. a) Grievance means an unresolved complaint or dispute regarding the application or interpretation of rules, regulations, policies, procedures, Memorandum of Agreement or City ordinances of resolution, relating to terms or conditions of employment, wages or fringe benefits, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance or appeal of disciplinary action procedure. b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action against an employee covered by this Memorandum of Agreement. Discipline is defined as suspensions without pay, reductions in pay, demotion or discharge. Reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not considered discipline. Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure. a) An aggrieved employee may be represented by the Union or may represent himself/herself in preparing and presenting a grievance or appeal of disciplinary action at any level of review. Grievances or appeal of disciplinary action may also be presented by a group of employees. No grievance or appeal of disciplinary action settlement may be made in violation of an existing merit rule or memorandum of agreement. The Union will be notified prior to the implementation of any settlement made which affects the rights or conditions of other employees represented by the City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 54 of 78 Union. The Union and the Steward will be copied on all written representation unit grievance or appeal of disciplinary action decisions. b) An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance or appeal of disciplinary action. Requests for release time to prepare grievance or appeal of disciplinary action shall be made in accordance with the provisions of Article IV, Section 3. c) Beginning with the third step of the grievance or appeal of disciplinary action procedure, the Chief Steward or Alternate Chief Steward may assist in presenting a grievance or appeal of disciplinary action and may be present at all Step III, and IV grievance or appeal of disciplinary action hearings. d) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Union and the reviewer concerned. e) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step. f) The grievance or appeal of disciplinary action may be considered settled if the decision of any step is not appealed within the specified time limit. g) If appropriate, the aggrieved employee(s) or the Union and the department head may mutually agree, in writing, to waive Step I and/or Step II of the grievance or appeal of disciplinary action procedure. h) Grievances or appeal of disciplinary action shall be made in writing and submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The written grievance or appeal of disciplinary action shall contain clear, factual and concise language, including: (1) the name of the grievant; (2) a statement of the facts upon which the grievance or appeal of disciplinary action is based, including relevant dates, times and places; (3) specific provisions of this Agreement or specific City rules, policies, or procedures which the grievance or appeal of disciplinary action alleges has been violated; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance or appeal of disciplinary action. i) Any retroactivity on monetary grievances or appeal of disciplinary action shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance or appeal of disciplinary action was filed in writing. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 55 of 78 j) If the grievance is filed by more than one employee in the bargaining unit, the Union may, at its option, convert it to a Union grievance after Step II of the grievance procedure. The Union may also file a grievance in those instances when, under this Memorandum of Agreement, a Union right not directly related to an individual employee becomes the subject of dispute. Union grievances shall comply with all of the foregoing provisions and procedures. k) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays. l) If a mutually agreed solution is reached during any step of this grievance or appeal of disciplinary action procedure, the agreement shall be placed in writing and signed by the City and the grievant or union. m) Upon request of either party, meetings to discuss the grievance or appeal of disciplinary action shall be held at any step in the grievance or appeal of disciplinary action procedure. n) The Parties may mutually agree in writing to an alternate method(s) of delivery for any communication for any notices required pursuant to Article XIX, Grievance Procedure, of a grievance or appeal of disciplinary action. Such agreement shall list the designated representative(s) for each party and the appropriate contact information for each Party, and describe the agreed-upon method(s) of communication. All designated representatives shall be copied on any communications. On all transmissions that are intended to conform to a time limit, the sender shall retain proof that the transmission was sent within that limit (for example, confirmation of electronic mail transmission or record of successful fax transmission) in the sender’s file for production if a dispute arises over existence or timing of the transmission. Either Party may designate new representatives or terminate an alternate delivery agreement under this section by providing written notice, which shall be effective immediately, to the other. Section 4 - Grievance and Appeal Procedure. Step I. Informal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance or appeal of disciplinary action is based the aggrieved employee shall present the grievance action to his or her immediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 56 of 78 Step II. If the grievance is not resolved through the informal discussion in Step 1 or the employee wishes to appeal disciplinary action taken against him/her in the case of a grievance, the employee will reduce the grievance or appeal of disciplinary action to writing and submit copies to the Department head or his or her designee within fifteen (15) working days of the discussion with the immediate supervisor or within fifteen (15) working days from the receipt of a final disciplinary action. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance or appeal of disciplinary action to review the matter and prepare a written statement. Step III. If the grievance or appeal of disciplinary action is not resolved and/or the aggrieved employee is not satisfied with the Step II decision, the grievant or disciplined employee may appeal to the Human Resource Director or his or her designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance or appeal of disciplinary action, the Department Head’s decision at Step II, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step IV. If the grievance or appeal of disciplinary action is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance or appeal of disciplinary action through appeal to the City Manager or through appeal to final and binding arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Union approval. All Step IV appeals must be filed in writing at the Human Resources Department within fifteen (15) working days of receipt of the Human Resource Director’s decision at Step 3. If the grievant or appellant elects final and binding resolution by the City Manager, the City Manager will choose the methods he or she considers appropriate to review and settle the grievance or appeal of disciplinary action. The City Manager shall render a written decision to all parties directly involved within fifteen (15) working days after receiving the grievant/appellant’s appeal. If the grievant/appellant elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator within 90 days from the date of receipt of the written request for appeal. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 57 of 78 The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances or appeal of disciplinary action appealed to the arbitrator. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum Of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in Article XX and without regard to the merits of the grievance or appeal of disciplinary action. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Union. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION The City has the right to discipline, demote, or discharge employees for cause. Non- probationary employees whose work or conduct is unsatisfactory but not sufficiently deficient to warrant discipline, demotion, or discharge will be given a written notification of unsatisfactory work or conduct and an opportunity to improve. Failure to correct deficiencies and improve to meet standards may result in discipline, demotion, or discharge. Discipline is defined as suspensions without pay, reduction in pay, demotion, or discharge. Coaching, mentoring, verbal counseling, written counseling, reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not discipline and shall not be subject to the requirements of this Article. Section 1 - Preliminary Notice of Discipline. Prior to imposing disciplinary action, a supervisor shall provide an employee with preliminary written notice of the proposed disciplinary action. The notice of proposed disciplinary action must be in writing and served on the employee in person or by registered mail or Fed-Ex. The notice of disciplinary action shall include: a) Statement of the violations upon which the disciplinary action is based; City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 58 of 78 b) Intended effective date of the action; c) Statement of the cause thereof; d) Statement in ordinary and concise language of the act or the omissions upon which the causes are based; e) Copies of any documents or other written materials upon which the disciplinary action was fully or in part based. f) Statement advising the employee of his/her right to appeal from such action, and the right to union representation and a statement that in order to exercise your rights to union representation the employee may contact their SEIU representative or their steward. g) The date and location of the Skelly meeting and the name of the Skelly Officer Section 2 - Skelly Meeting. The employee shall have the right to respond informally to the charges either verbally or in writing before the discipline is imposed. The employee shall have fifteen (15) working days from receipt of the notice to request this pre- disciplinary administrative review. The employee may request a reasonable extension of the time to respond for justifiable reasons. The Skelly meeting to listen to the verbal responses shall be scheduled with a City representative who is not the manager recommending the discipline (the “Skelly Officer”). The Skelly Officer shall render a final written decision (the “post-Skelly decision”) within fifteen (15) working days of receiving the employee’s response, if any, and shall deliver the post-Skelly decision to the employee by personal delivery or registered mail. The Skelly Officer may sustain, modify, or overturn the recommended disciplinary action. If the Skelly Officer sustains or modifies the disciplinary action, the action may be imposed after the post-Skelly decision is delivered to the employee. Section 3 – Appeals. Appeals of disciplinary action should be processed through the procedures outlined in Steps 2-4 of the grievance appeal of disciplinary action procedure (Article XIX, Section 4.) ARTICLE XXI - NO ABROGATION OF RIGHTS The parties acknowledge that Management rights as indicated in Section 1207D of the Merit System Rules and Regulations and all applicable State laws are neither abrogated nor made subject to negotiation by adoption of this MOA. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 59 of 78 ARTICLE XXII - OUTSIDE EMPLOYMENT The provisions of Article 4.7 of the Government Code of the State of California will govern the determination of incompatible outside employment. ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS The City agrees that it will not lock out employees, and the Union agrees that it will not engage in any concerted work stoppage or slowdown during the term of this MOA. An employee shall not have the right to recognize the picket line of a labor organization when performing duties of an emergency nature. ARTICLE XXIV - PROVISIONS OF THE LAW Section 1 - Conformity and Separability of Provisions. This Memorandum of Agreement is subject to all current and future applicable Federal and State laws and Federal and State regulations and the Charter of the City of Palo Alto and the Constitution of the State of California. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 2 - Merit Rules and Regulations. This Memorandum of Agreement shall become a part of the City of Palo Alto Merit Rules and Regulations applying to employees assigned to classifications in the SEIU unit. As applied to employees assigned to the SEIU unit, this Memorandum of Agreement shall prevail over any conflicting Merit Rules and Regulations. Section 3 - Resolution. The City and the Union agree by signing this Memorandum of Agreement that the wages, hours, rights and working conditions contained herein shall be continued in full force during the term of this Memorandum of Agreement except as otherwise provided for in the Memorandum of Agreement and shall be binding on both the City and the Union upon ratification by the Council of the City of Palo Alto and upon ratification by Union membership. ARTICLE XXV - TUITION REIMBURSEMENT The City shall fund a Tuition and Student Loan Reimbursement Program for use by employees in the unit. This program will provide reimbursement to eligible SEIU City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 60 of 78 members for successful completion of undergraduate, graduate level courses, collegiate level certification courses or any other pre-approved training related to employment opportunities with the City. The City will fund up to $100,000 for each fiscal year of the term of this MOU. The maximum reimbursement will be one thousand five hundred dollars ($1,500) total per employee for each fiscal year of this MOU. Monies expended on this program will be subject to appropriate IRS regulations. Requests for reimbursement are on a first come first serve basis and must be submitted within thirty (30) calendar days of the end of the fiscal year to be allocated to the fiscal year. The Tuition Reimbursement will be provided if the following conditions are met: a. Courses, classes or trainings must be pre-approved as job related by the division head or designee prior to the start date. Employees may appeal a denial to the Human Resources Director or designee within 5 working days of receipt of denial, whose decision shall be final. b. Eligible expenses include required textbooks, tuition, fees, lab fees and equipment, but will not include parking fees or health fees related to enrollment. c. Employees must attain a final grade of “C” or better for both undergraduate and graduate work. Courses providing a “pass/fail” must achieve a “pass” to qualify for reimbursement. Ungraded courses, classes or trainings will qualify for reimbursement based on proof of successful completion. d. Requests for reimbursement shall be submitted in accordance with the procedures developed by the City. A request for reimbursement will not be considered submitted until it includes the relevant receipts and proof that the necessary grade or successful completion was earned. e. Courses must be taken on the employee’s off duty hours, unless prior approval is received from the employee’s supervisor. Student Loan Reimbursement conditions: a. Employees must have an active student loan in good standing. b. Employees must successfully complete the secondary education with which the student loan was incurred, and must provide proof of successful graduation or completion. c. Requests for reimbursement shall be submitted in accordance with the procedures developed by the City. A request for reimbursement will not be considered submitted until it includes proof of payment towards the employee’s student loan within the eligible fiscal year. ARTICLE XXVI - COST REDUCTION PROGRAMS City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 61 of 78 During the term of this agreement, the Union will aggressively assist Management in developing cost reduction programs. Such programs may include voluntary reduced hours/pay after this concept is studied by Management, and with such application as may be approved by Management. ARTICLE XXVII – TERM The Term of this Memorandum of Agreement shall commence on January 1, 2019 and shall expire on December 31, 2021. The Parties agree that they will commence negotiations over a successor to this Memorandum of Agreement no later than one hundred eighty (180) days (July 2, 2021) before its expiration. If, at the time this Memorandum of Agreement would otherwise expire, the parties are continuing to negotiate a successor Memorandum of Agreement, upon mutual agreement the terms and conditions of this Memorandum will continue in effect. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 62 of 78 EXECUTED: FOR LOCAL 521, SEIU, CTW: FOR CITY OF PALO ALTO: _______________________________ _______________________________ Jim Philliou, SEIU Chief Negotiator Ed Shikada, City Manager __ Margaret Adkins, Chapter Chair Rumi Portillo, Human Resources Director __ Sandra Floyd, SEIU Worksite Organizer Nicholas Raisch, Chief Negotiator _____ __ Ratu Serumalani, Chief Steward Tori Anthony __ Alison de Geus, Vice Chair Grace Castor ___ Alicia Spotwood, Steward Jon Hospitalier __________ Martha Walters, Chapter Secretary Richard Baptist __________ Joseph Luttrell, Steward Kristen O’Kane __________ George Parry Gayathri Kanth Lynn Krug, Steward Kyle Carbajal Gus Ibarra, Steward Alex Gonzales City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 63 of 78 Andrez Escamilla, Steward Robin Ellner City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 64 of 78 APPENDIX A The salary rates of bargaining unit classifications will be as set forth in Appendix A of this MOA. Base Salary Effective the first full pay period following adoption by Council (anticipated Council meeting April 22, 2019, PP10), employees in this unit shall receive a 3.5% salary increase. Effective the first full pay period including December 1, 2019 (PP25), employees in this unit shall receive a 3.5% salary increase. Effective the first full pay period including December 1, 2020, employees in this unit shall receive a 3.0% salary increase. Recruitment and Retention For job families below median after receiving the 3.5% salary increase upon Council adoption of the contract listed above, the City will provide market adjustments to market median. Job Families specified below are exempt from this section’s market adjustments. Effective the first full pay period following adoption of this contract by Council, the following additional adjustments will be made: a) Public Safety Dispatch (Job Family) will receive an additional 5% salary effective the first full pay period following adoption of this contract by Council for a total of an 8.5% salary increase. b) Lineperson Cable Splicer Job family (excluding Lineperson job series, Compliance Tech job series, Overhead Underground Troubleman, and Utility Systems Operator series) will receive an additional 10% salary effective the first full pay period following adoption of this contract by Council for a total of a 13.5% salary increase. c) Lineperson job series, Compliance Tech job series, Overhead Underground Troubleman, and Utility Systems Operator series will receive an additional 20% salary effective the first full pay period following adoption of this contract by Council for a total of a 23.5% salary increase. Resolution of Charges, Grievances, and meet and confers The Union agrees to withdraw the following: City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 65 of 78 • Grievance # 77457-2018- Comp Time • Grievance # 76887-2017- Schedules • ULP No. SF-CE-1649-M • Resolution of Lab Tech Job Description meet and confer City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 66 of 78 APPENDIX B. APPRENTICESHIPS Note: Employees hired into a Lineperson Apprenticeship position on or before April 11, 2016 will continue to progress through the Apprenticeship steps and into the Lineperson journey rate at the same intervals as existed before April 11, 2016 in the Apprenticeship Program. Substation Electrician, Street Light /Traffic Signal / Fiber Technician, Lineperson/Cable Splicer APPRENTICE: Upon completion, may lead to Journey level position. The Utilities Department has formalized the Apprenticeship programs in the Electric Section to develop journey level electricians/technicians and lineperson/cable splicers. The following are basic concepts/principles to be incorporated: 1. The administration and operation of the Apprenticeship programs will be managed by the Apprenticeship Committee, which will be selected by the Manager of Electric Operations and comprised of two (2) bargaining unit members designated by Local 521 and two (2) Utility Supervisors and the Manager of Electric Operations. The Manager of Electric Operations will maintain oversight of the program. The Apprenticeship Program will be subject to review and approval by the State of California Department of Industrial Relations Division of Apprenticeship Standards. 2. The journey level position will not be a promotional opportunity for anyone other than the apprentice under filling the position, as long as that apprentice is successfully progressing through the program. 3. Employees within Electric Operations, who qualify, will be given first consideration for the apprentice position prior to other City classifications or recruiting from outside the City. 4. A letter of agreement will be entered into by the apprentice and the City identifying the terms and conditions of the program. 5. The program will normally require eight thousand (8000) work hours (48 months) to complete for Lineperson Cable Splicer and six thousand (6000) work hours (36 months) for Substation Electrician, Street Light /Traffic Signal / Fiber Technician positions. 6. Normal progress through the program will be in periodic increments with formal evaluations. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 67 of 78 7. The salary steps for the Substation Electrician, Street Light /Traffic Signal / Fiber Technician and Lineperson Cable Splicer apprenticeships are outlined in the State of California Department of Industrial Relations Division of Apprenticeship Standards. Employees hired into a Lineperson/Cable Splicer Apprenticeship position will be paid at step 1 of the Lineperson/Cable Splicer Apprentice step range. Upon completion of all course work requirements outlined in the apprentice syllabus, the employee will progress as follows: Month Step Step Intervals 1-12 1 12 months 13-24 2 12 months 25-36 3 12 months 37-42 4 6 months 43-48 5 6 months Upon successful completion of the fourth year following commencement of the Apprenticeship, the employee will be reclassified/progressed to Lineperson / Cable splicer Journey Level and paid at the top step (step 5) of the journeyman rate. In any case, successful completion of the program and movement into the Lineperson Cable Splicer journey level classification will not transpire until the employee has fulfilled all of the requirements outlined in the program content description and received the recommendation of the Apprenticeship Committee. Employees hired into a Substation Electrician or Street Light /Traffic Signal / Fiber Technician Apprenticeship position will be paid at step 1 of the Substation Electrician or Street Light /Traffic Signal / Fiber Technician step range. Upon completion of all coursework requirements outlined in the apprentice syllabus, the employee will progress as follows: Month Step 1-6 1 7-12 2 13-18 3 19-24 4 25-36 5 City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 68 of 78 Upon successful completion of the Apprenticeship, the employee will be reclassified / progressed to Substation Electrician or Street Light /Traffic Signal / Fiber Technician Journey Level and paid at the fifth step (step 5) of the journeyman rate. In any case, successful completion of the program and movement into the Substation Electrician or Street Light /Traffic Signal / Fiber Technician journey Level classification will not transpire until the employee has fulfilled all of the requirements outlined in the program content description and received the recommendation of the Apprenticeship Committee. 8. Should an apprentice prove deficient in progressing through either the coursework or on-the-job training portion of an apprenticeship step, the apprentice shall not progress to the next higher step nor shall the apprentice receive the step increase in wages. The apprentice as described above may at the discretion of the appropriate Division Manager, be granted a three (3) month extension to eliminate the deficiency and be allowed to progress to the next higher step in the apprenticeship and receive the step increase in wages. *Note: A maximum of two (2) time extensions may be granted during the term of the apprenticeship. Any apprentice that is removed due to documented deficiency shall have their employment terminated. 9. The City and the Union agree to review or develop job descriptions to better reflect the qualification necessary to attract and retain successful candidates for this program. It is further agreed that the job descriptions will not warrant additional compensation. 10. Training will consist of on-the-job (OJT) and required training as outlined in the program, Training costs will be funded by departmental funds and employees will be compensated their normal wages while attending required training. Personal time spent in off-the-job training and/or study will not be compensated. 11. The apprentice will be under the continuing guidance of an appropriately qualified journey level person during OJT. Such journey level persons will be assigned by Management from among volunteers who will not receive additional compensation. 12. Qualifications/progress will be verified by appropriately kept records. 13. Unless specifically stated otherwise, regular City personnel policies and MOA provisions will apply to the apprenticeship program. 14. This program may become a conceptual model for apprenticeships in other divisions or departments. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 69 of 78 APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION Section 1. Exceptions to Standard Workday or Work Week for SEIU Representation Unit: Library Department Coordinator, Library Programs Librarian Senior Librarian Library Specialist Library Associate In a given workweek, staff may work three eight-hour days, one seven-hour day, and one nine-hour day. On a voluntary basis, staff may work five non-consecutive days within seven. Section 2. Rules Governing Flexible Work Hours. These rules and procedures are established pursuant to Article VI, Section 8, and are an application of Article VIII, Sections 1, 2, and 3 of the Memorandum of Agreement to the classifications of Coordinator, Recreation Programs; Producer, Arts & Sciences Programs; Program Assistant; Theater Specialist, in the Recreation and Arts & Sciences Divisions of the Community Services Department, and the classifications of Associate Planner, Building Planning Technician, CDBG Coordinator, Engineer, , Planner, and Senior Planner in the Planning and Community Environment Department. a) Flexible Work Schedule 1. Employees in the covered classification shall be permitted to arrange flexible work schedules with division approval, providing that such schedules shall include forty (40) hours per week. 2. Standard daily office hours are typically Monday through Friday, between the hours of 8:00 a.m. and 6:00 p.m. as determined by the Department. Flexible hours may occur for supervision of, and/or attendance at, evening programs, meetings, weekend events, or other programs. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 70 of 78 b) Overtime 1. Emergency call-out work shall be defined as overtime work and compensated per standard City practices. 2. If the need arises for overtime work due to an unusual circumstance calling for extra hours or due to a special event, compensation shall be allowed with prior approval of the Director of Recreation, Director of Arts and Sciences, or the Director of Planning and Community Environment, and shall be compensated for, as spelled out in the Memorandum of Agreement. Section 3. 2080 Plan a) Either the Union or the City may withdraw from the Plan by giving the other party 30 calendar days written notice. In the event of termination of the plan, the covered classifications will return to an 8-hour or other authorized workday as provided under Article VIII, Section 1, of this Memorandum of Agreement. b) Provisions of the 2080 Plan are as follows. To the extent that these provisions are in conflict with other provisions of the Memorandum of Agreement, these provisions will prevail. c) The 2080 Plan or “12 hours per Shift Schedule” is an authorized work schedule for the Utility Systems Operators and Water Quality Control Plant Operators. 2080 Plan Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For scheduling purposes, and subject to the Merit System Rules and Regulations, the employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks at the normal number of hours worked per week. Any employee covered by the Plan who works up to 2,080 hours per year is compensated for all hours worked at the agreed upon rate. The City must pay overtime for all hours worked in excess of 12 in any workday, 56 hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of overtime will be at time and one-half the employee's regular rate of pay (or current contract overtime rate, if different). Shift Schedule The shift schedules combined must provide full 24-hour, seven (7) days per week coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule shall be a rotating schedule. The Utility Systems Operators’ shift schedule will reach the equivalent of 40 hours per week in five weeks. The 12-hour shifts begin at 7:00 a.m. and 7:00 p.m. The Relief shift shall begin at 7:00 a.m. and end at 3:00 p.m. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 71 of 78 with lunch taken while working. The shift schedule shall be rotating schedule. The Water Quality Control Plant Operators’ shift schedule will reach the equivalent of 40 hours per week in two weeks. There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon on the fourth day. Pay Period Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay periods and workweek for the Water Quality Control Plan Operators will begin Saturday at 6:01 a.m. Wages Wages will be based on the City of Palo Alto Compensation Plan, which may vary from time to time as mutually agreed upon. Overtime Under the 2080 Plan, the City will pay overtime for all hours worked in excess of 12 in any workday, 56 in any work week, or 2080 in 52 weeks, as the case may be. Overtime will also be paid for hours worked when an employee is called in to work other than their regularly-scheduled shift. The overtime rate of pay will be one and one-half times (or current contract overtime rate, if different) of the employee's regular rate of pay. All overtime worked will be paid to the employee. No compensatory time off for overtime will be allowed with the exception of Water Quality Control Operations. Relief Employees This provision only applies to the Utility Systems Operators. The five Operators share the relief week evenly as they rotate through the five week cycle. Relief employee(s) will be used within the 12-hours shift schedule only when relieving for the System Operators on shift. When not relieving, they will work four eight-hour shifts. When a vacation relief week results in a 36-hour or 48-hour week, the operator working said week shall be paid at one and one-half (1½) time their normal rate of pay for hours that exceed thirty two (32) hours. Relief Duties This provision only applies to the Utility Systems Operators. An employee who is scheduled to perform relief duties shall be available for duty in revolving shifts on any day of the week and may be assigned for relief in any shift without advance notice. Relief employees will be paid standby pay during their relief week. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 72 of 78 Standby This provision only applies to the Utility Systems Operators. An employee who is on relief duties is covering standby, and will be compensated according to Article VIII, Section 7 (a) of the Memorandum of Agreement. If the relief employee is on vacation or otherwise unavailable for relief duties, the employee(s) on their three or four-day off period will be first on standby. Management reserves the right to utilize Management personnel as Operators on a short-term, as needed basis, if no Operator is available. Filling Vacant Positions If the City elects to fill a vacancy other than by reassignment of the shift or the utilization of prior or succeeding shift personnel, the following procedure shall be used: Employees will be called according to their position on the Pre-arranged Overtime List (POL), with the person with the lowest balance being the first one called. The purpose of the POL is to fairly distribute the available opportunities. If an employee turns down the overtime, that amount will be added to the employee's POL balance. If an employee cannot be contacted for such assignment, the employee will not have any overtime added to their POL account balance. Shift Changes Shift changes caused by scheduled time off or sick leave will not be considered an official change in shift. Maximum Hours Worked No employee shall work more than 18 consecutive hours. Rest Period In a 12-hour workday, employees are entitled to a rest period of 8 consecutive hours after working 6 hours overtime during the 12 hours immediately before the regularly scheduled hours of work on a workday or non-workday. Holidays Employees who begin their day or night shift on an observed holiday will receive overtime premium in accordance with Article X, Section 3 of the Memorandum of Agreement. Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. Employees working for Water Quality Control Operations may accrue holiday time convertible to vacation. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 73 of 78 Sick Leave Sick leave will be earned as indicated in Article XII, Section 1(a) of this MOA, and shall be charged in increments of one hour. Floating Days Off Floating holidays will be made available to eligible employees and used pursuant to Article X, Section 5. Vacation An employee's total entitlement will be converted to hours (eight hours = one day). A workday will consist of 12 hours, and employees taking vacation will be charged 12 hours of use. Two week notification is required for any scheduled time off. Only one person at a time may be scheduled off. It is the intention of the City that vacation be taken in units of one work week; however, with approval of his/her supervisor, an employee may use his/her accrued vacation in units of less than one work week. Meals Shift employees shall be permitted to eat their meals during work hours and shall not be allowed additional time, therefore at City expense. Shift Premium Shift premium will be handled in accordance with the current Memorandum of Agreement between the City and the Union, Article VIII, Section 8. Jury Duty Time off for jury duty which occurs on a regularly scheduled workday will result in the employee being credited with up to 12 hours worked, for pay purposes. Employees called for jury duty who are working the evening portion of the 12-hour schedule will be placed, for payroll and scheduling purposes, on the day shift for each scheduled day such employee is required to report for jury duty, and will not be required to work the evening 12-hour shift before or after being required to report for jury duty. However, such employee shall return to work on the day shift upon being released from such duty if there are at least four hours remaining prior to the end of the day shift. All other provisions of Article XII, Section 5, of the current Memorandum of Agreement shall apply. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 74 of 78 APPENDIX D. IN-LIEU PREMIUMS 1. For employees in the following operations assigned to work schedules other than Monday through Friday, the calendar day will be considered the holiday for premium pay of in-lieu scheduling purposes: Communications Water Quality Control Animal Control Golf Course Utilities Services Landfill Open Space Electric System Operator c) If December 24 and 31 fall on Sunday, then the preceding Friday will be designated for purposes of excused time off, except in the case of Community Services staff who may be scheduled to work on Saturday, in which case Saturday will be designated for purposes of excused time off. For Open Space and Library personnel, designation of excused time off will be based on Park and Library schedules and employee preference. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 75 of 78 APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS 1. Promotional opportunities within the Communications Division will be carried out in compliance with procedures set forth in Article VI, Section 5, of the Memorandum of Agreement between the City and SEIU Local 521, except that: a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined as Division Seniority. • Division Seniority, for the purposes of shift scheduling, vacation scheduling and promotional opportunities will be calculated from an employee’s first day of employment in the division. Any unpaid leave that is not protected under FMLA or CFRA will not count as service days towards seniority, unpaid furlough, and unpaid closure time. Other areas of seniority not mentioned in this article will follow Article 6, Section 5, e “Seniority” of the Memorandum of Agreement between SEIU 521 and the City of Palo Alto. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 76 of 78 APPENDIX F. RECOVERY OF CITY TRAINING COSTS In recognition of the extended training provided to affected employees, the Parties agree that the City may recover up to thirty percent (30%) of its cost for training employees, hired on or after July 1, 2012, in all Utilities Apprentice classifications and in the Park Ranger Apprentice classifications if the employee voluntarily terminates from the City or abandons his or her City employment before completing three years of City service in the Journeyman classification or Park Ranger classification. The amount recovered shall reasonably reflect the City’s cost for the training, but will exclude all wage or benefit costs, and will be prorated to reflect the portion of the thirty-six (36) month post-training service period remaining at the time of the employee’s termination. As of July 1, 2015 thirty percent (30%) of the City’s average cost for training employees in: • Lineperson/Cable Splicer Apprenticeship Program is $5600.00 • For the Field Service Representative, the City’s two year training cost is $ 6,000 • For Substation Electrician Apprenticeship Program is $4800.00 • For Street Lighting / Traffic Signals / fiber Apprentice program is: $1800.00 • For Park Ranger, the City’s two-year training cost is:$6,300 The employee will be required to sign an agreement providing for reimbursement to the City as provided above on the form attached hereto as Appendix H. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 77 of 78 APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT This Agreement is entered into between ___________ (“Employee”) and the City of Palo Alto (the “City”), as authorized by the Memorandum of Agreement between the City and SEIU Local 521. RECITALS A. The purpose of this Agreement is to limit the City’s risk that it will invest substantial sums in the Employee’s training but potentially lose the value of that training if the employee terminates without rendering substantial journey level service to the City after training. B. The City may require reimbursement from Employee of thirty percent (30%) of the total training cost for _______position, subject to abatement when specified service requirements are met. C. On or about (date) City extended to Employee a conditional offer of employment in the position of _________(position), subject to Employee’s agreement to complete the training necessary to perform the duties of _______ (position), under the terms of the training program. The ______(position) requires [description of training], which as of July 1, 2015 cost the City approximately $ over the course of the training. D. This agreement sets forth the Employee’s agreement to reimburse the City for the City’s investment in the Employee’s training if the employee voluntarily terminates from the City prior to the completion of thirty-six months of service following successful completion of the training. THEREFORE, the Parties agree to the terms set forth below: By signing this agreement, the Employee understands that s/he is bound by agrees to the following terms: 1. ____________________________________ (hereafter “Employee”) agrees that in training Employee for the position of _________________________________________, the City of Palo Alto (hereafter “City”) incurs a total cost of $___________. 2. Employee agrees that amounts recoverable under this agreement do not include Employee wage or benefit costs. City of Palo Alto and SEIU Local 521 January 1, 2019- December 31, 2021 Page 78 of 78 3. Employee agrees that in the event he/she voluntarily terminates or abandons his or her employment from the City prior to the completion of thirty-six (36) months of service following the successful completion of his or her apprenticeship, he/she will repay the City for the cost of training noted above, prorated to reflect the months of service the Employee has completed following successful completion of their training. Employee agrees that for the purpose of this agreement, “time of service” shall begin on the date following the successful completion of the Employee’s training. 4. Employee agrees that the aggregate amount of repayment due will be determined based upon the attached proration table. 5. Employee agrees that repayment shall be due and made in equal monthly installments over the twelve (12) months immediately following termination, on the first of each such month. 6. If Employee does not fully reimburse the City for the amounts due when due, the entire aggregate amount owed will become immediately due, the employee will be deemed in default on this agreement and the City may initiate legal proceedings to collect said amounts. Employee will be responsible for all reasonable collection costs and attorney fees incurred by the City in undertaking such proceedings. The City may elect to forbear taking such action to allow Employee the opportunity to become current on the debt. Such forbearance will not alter the Employee’s default status or adversely affecting the City’s right to later initiate proceedings for recovery pursuant to this Agreement. 7. This agreement shall be effective on the date listed below. DATED: ___________________ ______________________________________ Employee ______________________________________ Title, City of Palo Alto Benchmark Title (Bold) Job Family Positions (not bold) To Median of the Market Effective first full pay period following adoption Market or Recruitment/ret ention increase effective payperiod following adoption Effective first full pay period following December 1, 2019 Effective first full pay period following December 1, 2020 Total over Contract Accounting Specialist -10.8%3.5%7.3%3.5%3.0%17.3% ACCT SPEC 3.5%7.3%3.5%3.0%17.3% ACCT ASSISTANT 3.5%7.3%3.5%3.0%17.3% ACCT SPEC-LEAD 3.5%7.3%3.5%3.0%17.3% PAYROLL ANALYST 3.5%7.3%3.5%3.0%17.3% PAYROLL ANALYST - S 3.5%7.3%3.5%3.0%17.3% UTIL ACCTG TECH 3.5%7.3%3.5%3.0%17.3% UTIL CREDIT/COL SPEC 3.5%7.3%3.5%3.0%17.3% Administrative Associate II (Staff Sec)2.1%3.5%0.0%3.5%3.0%10.0% ADMIN ASSOC II 3.5%0.0%3.5%3.0%10.0% ADMIN ASSOC I 3.5%0.0%3.5%3.0%10.0% ADMIN ASSOC III 3.5%0.0%3.5%3.0%10.0% MAILING SVCS SPEC 3.5%0.0%3.5%3.0%10.0% OFFSET EQUIP OPERATOR 3.5%0.0%3.5%3.0%10.0% MANAGEMENT ASST 3.5%0.0%3.5%3.0%10.0% MANAGEMENT ASST - S 3.5%0.0%3.5%3.0%10.0% PROGRAM ASSISTANT 3.5%0.0%3.5%3.0%10.0% PROGRAM ASSISTANT I 3.5%0.0%3.5%3.0%10.0% PROGRAM ASSISTANT II 3.5%0.0%3.5%3.0%10.0% EMERGENCY MED SVS DATA SPECIALIST 3.5%0.0%3.5%3.0%10.0% Animal Control Officer -1.5%3.5%0.0%3.5%3.0%10.0% ANIMAL CONTROL OFF 3.5%0.0%3.5%3.0%10.0% ANIMAL CONTROL OFF - L 3.5%0.0%3.5%3.0%10.0% Associate Engineer -10.4%3.5%6.9%3.5%3.0%16.9% ASSOC ENGINEER 3.5%6.9%3.5%3.0%16.9% ASSOC POWER ENGR 3.5%6.9%3.5%3.0%16.9% ASST ENGINEER 3.5%6.9%3.5%3.0%16.9% ASST POWER ENGR 3.5%6.9%3.5%3.0%16.9% ENGINEER 3.5%6.9%3.5%3.0%16.9% MARKETING ENG 3.5%6.9%3.5%3.0%16.9% SEIU 521- City of Palo Alto Job Families updated 3.20.19 - DRAFT POWER ENGR 3.5%6.9%3.5%3.0%16.9% PLANS CHECK ENGR 3.5%6.9%3.5%3.0%16.9% UTIL ENGR ESTIMATOR 3.5%6.9%3.5%3.0%16.9% UTIL ENGR ESTIMATOR - L 3.5%6.9%3.5%3.0%16.9% PROJECT ENGINEER 3.5%6.9%3.5%3.0%16.9% PROJECT ENGINEER -S 3.5%6.9%3.5%3.0%16.9% ELECTRIC PROJECT ENGINEER 3.5%6.9%3.5%3.0%16.9% ELECTRIC PROJECT ENGINEER -S 3.5%6.9%3.5%3.0%16.9% TRAFFIC ENGINEERING LEAD 3.5%6.9%3.5%3.0%16.9% Building Inspector -3.1%3.5%0.0%3.5%3.0%10.0% BLDG INSPECTOR 3.5%0.0%3.5%3.0%10.0% DEVELOPMENT PROJECT COOD I 3.5%0.0%3.5%3.0%10.0% DEVELOPMENT PROJECT COOD II 3.5%0.0%3.5%3.0%10.0% DEVELOPMENT PROJECT COOD III 3.5%0.0%3.5%3.0%10.0% PLANNING ARBORIST 3.5%0.0%3.5%3.0%10.0% PLANNING ARBORIST - S 3.5%0.0%3.5%3.0%10.0% PLANS EXAMINER 3.5%0.0%3.5%3.0%10.0% BLDG INSPECTOR SPEC 3.5%0.0%3.5%3.0%10.0% CHF INSPEC WGW 3.5%0.0%3.5%3.0%10.0% CODE ENFORCEMENT OFF 3.5%0.0%3.5%3.0%10.0% CODE ENFORCEMENT OFF-L 3.5%0.0%3.5%3.0%10.0% SURVEYING ASST 3.5%0.0%3.5%3.0%10.0% SURVEYOR, PUBLIC WORKS 3.5%0.0%3.5%3.0%10.0% INSPECTOR, FIELD SVC 3.5%0.0%3.5%3.0%10.0% Building Service Person -0.8%3.5%0.0%3.5%3.0%10.0% BLDG SERVICEPERSON 3.5%0.0%3.5%3.0%10.0% BLDG SERVICEPERSON-L 3.5%0.0%3.5%3.0%10.0% EQUIP MAINT SERV PER 3.5%0.0%3.5%3.0%10.0% Buyer -4.7%3.5%1.2%3.5%3.0%11.2% BUYER 3.5%1.2%3.5%3.0%11.2% ASSOC BUYER 3.5%1.2%3.5%3.0%11.2% SR BUYER 3.5%1.2%3.5%3.0%11.2% SR BUYER - S 3.5%1.2%3.5%3.0%11.2% Chemist -4.2%3.5%0.7%3.5%3.0%10.7% CHEMIST 3.5%0.7%3.5%3.0%10.7% LAB TECH WQC 3.5%0.7%3.5%3.0%10.7% SR CHEMIST 3.5%0.7%3.5%3.0%10.7% Community Services Officer -1.6%3.5%0.0%3.5%3.0%10.0% COMMUNITY SERV OFFCR 3.5%0.0%3.5%3.0%10.0% COMMUNITY SERV OFFCR - L 3.5%0.0%3.5%3.0%10.0% COURT LIAISON OFFICE 3.5%0.0%3.5%3.0%10.0% CRIME ANALYST 3.5%0.0%3.5%3.0%10.0% PROPERTY EVID TECH 3.5%0.0%3.5%3.0%10.0% POL REC SPEC - L 3.5%0.0%3.5%3.0%10.0% POL REC SPEC I 3.5%0.0%3.5%3.0%10.0% POL REC SPEC II 3.5%0.0%3.5%3.0%10.0% PARKING OPERATIONS - L 3.5%0.0%3.5%3.0%10.0% Coord, Recreation Programs -1.4%3.5%0.0%3.5%3.0%10.0% COORD REC PROG 3.5%0.0%3.5%3.0%10.0% COORD PW PROJ 3.5%0.0%3.5%3.0%10.0% COORD TRANS SYS MGMT 3.5%0.0%3.5%3.0%10.0% COORD TRANS SYS MGMT - S 3.5%0.0%3.5%3.0%10.0% COORD UTIL PROJ 3.5%0.0%3.5%3.0%10.0% COORD UTIL PROJ - S 3.5%0.0%3.5%3.0%10.0% COORD ZERO WASTE 3.5%0.0%3.5%3.0%10.0% EDUCATOR 3.5%0.0%3.5%3.0%10.0% PROD ARTS/SCI PROG 3.5%0.0%3.5%3.0%10.0% PROG COORD 3.5%0.0%3.5%3.0%10.0% THEATER SPECIALIST 3.5%0.0%3.5%3.0%10.0% VOLUNTEER COORD 3.5%0.0%3.5%3.0%10.0% Customer Service Representative -2.9%3.5%0.0%3.5%3.0%10.0% CUST SVC REPRESENT 3.5%0.0%3.5%3.0%10.0% CUST SVC SPEC 3.5%0.0%3.5%3.0%10.0% CUST SVC SPEC - LEAD 3.5%0.0%3.5%3.0%10.0% UTIL KEY ACCT REP 3.5%0.0%3.5%3.0%10.0% ASSOC BUYER 3.5%0.0%3.5%3.0%10.0% Desktop Technician -0.9%3.5%0.0%3.5%3.0%10.0% DESKTOP TECHNICIAN 3.5%0.0%3.5%3.0%10.0% Electrician -4.6%3.5%1.1%3.5%3.0%11.1% ELECTRICIAN 3.5%1.1%3.5%3.0%11.1% ELECTRICIAN-APPREN 3.5%1.1%3.5%3.0%11.1% ELECTRICIAN-LEAD 3.5%1.1%3.5%3.0%11.1% FACILITIES ELECT 3.5%1.1%3.5%3.0%11.1% INSTRUM ELEC 3.5%1.1%3.5%3.0%11.1% SR INSTRUM ELEC 3.5%1.1%3.5%3.0%11.1% Engineering Technician II -1.4%3.5%0.0%3.5%3.0%10.0% ENGR TECH II 3.5%0.0%3.5%3.0%10.0% ENGR TECH I 3.5%0.0%3.5%3.0%10.0% ENGR TECH III 3.5%0.0%3.5%3.0%10.0% LANDFILL TECHNICIAN 3.5%0.0%3.5%3.0%10.0% Ind Waste Investigator 4.9%3.5%0.0%3.5%3.0%10.0% IND WASTE INVTGTR 3.5%0.0%3.5%3.0%10.0% ENVIRONMENTAL SPEC 3.5%0.0%3.5%3.0%10.0% IND WASTE INSPEC 3.5%0.0%3.5%3.0%10.0% IND WASTE TECHNICIAN 3.5%0.0%3.5%3.0%10.0% SR INDUSTRIAL WASTE INVESTIGATOR 3.5%0.0%3.5%3.0%10.0% SR IND WASTE INSPECT 3.5%0.0%3.5%3.0%10.0% Equipment Operator -2.1%3.5%0.0%3.5%3.0%10.0% EQUIP OPERATOR 3.5%0.0%3.5%3.0%10.0% EQUIP OPERATOR-LEAD 3.5%0.0%3.5%3.0%10.0% PW HEAVY EQUIP OPER 5.9%3.5%0.0%3.5%3.0%15.9% PW HEAVY EQUIP OPER-L 5.9%3.5%0.0%3.5%3.0%15.9% STREET SWEEPER OP 3.5%0.0%3.5%3.0%10.0% Facilities Technician 1.3%3.5%0.0%3.5%3.0%10.0% FACILITIES MECH 3.5%0.0%3.5%3.0%10.0% FACILITIES MAINT-L 3.5%0.0%3.5%3.0%10.0% CEMENT FINISHER 3.5%0.0%3.5%3.0%10.0% CEMENT FINISHER-LEAD 3.5%0.0%3.5%3.0%10.0% FACILITIES ASST 3.5%0.0%3.5%3.0%10.0% FACILITIES CARPENTER 3.5%0.0%3.5%3.0%10.0% FACILITIES PAINTER 3.5%0.0%3.5%3.0%10.0% Library Specialist -3.3%3.5%0.0%3.5%3.0%10.0% LIBRARY SPECIALIST 3.5%0.0%3.5%3.0%10.0% LIBRARY ASSOCIATE 3.5%0.0%3.5%3.0%10.0% Lineperson Cable/Splicer -1.0%3.5%10.0%3.5%3.0%20.0% ELEC UNDG INSPEC - L 3.5%10.0%3.5%3.0%20.0% ELEC UNDGD INSPEC 3.5%10.0%3.5%3.0%20.0% ELECTRICAL EQUIPMENT TECHNICIAN 3.5%10.0%3.5%3.0%20.0% ELECTRICAL ASSISTANT 3.5%10.0%3.5%3.0%20.0% ELECTRIC HEAVY EQUIPMENT OPERATOR 5.9%3.5%4.1%3.5%3.0%20.0% LINEPER/CABLE SPL 3.5%20.0%3.5%3.0%30.0% LINEPER/CABLE SPL-L 3.5%20.0%3.5%3.0%30.0% LINEPER/CABLE SPL-T 3.5%20.0%3.5%3.0%30.0% LINEPER/CABLE SPL-TL 3.5%20.0%3.5%3.0%30.0% METER TECHNICIAN 3.5%10.0%3.5%3.0%20.0% LEAD METER TECHNICIAN 3.5%10.0%3.5%3.0%20.0% STREET LIGHT TRAFFIC SIGNAL FIBER TECHNICIAN 3.5%10.0%3.5%3.0%20.0% STREET LIGHT TRAFFIC SIGNAL FIBER TECHNICIAN-APPRENTICE 3.5%10.0%3.5%3.0%20.0% STREET LIGHT TRAFFIC SIGNAL FIBER TECHNICIAN-L 3.5%10.0%3.5%3.0%20.0% SUBSTATION ELECTRICIAN 3.5%10.0%3.5%3.0%20.0% SUBSTATION ELECTRICIAN - L 3.5%10.0%3.5%3.0%20.0% SUBSTATION ELECTRICIAN - APPRENTICE 3.5%10.0%3.5%3.0%20.0% LNPER/CBL SPL-APPREN 3.5%20.0%3.5%3.0%30.0% UTIL COMPLIANCE TECH 3.5%20.0%3.5%3.0%30.0% UTIL COMPLIANCE TECH - L 3.5%20.0%3.5%3.0%30.0% OVRH UNDERGR TROUBLEMN 3.5%20.0%3.5%3.0%30.0% UTIL SYST OPER- TRAINING 3.5%20.0%3.5%3.0%30.0% UTIL SYST OPER 3.5%20.0%3.5%3.0%30.0% Water Meter Repairer 1.7%3.5%0.0%3.5%3.0%10.0% WATER METER REPAIR 3.5%0.0%3.5%3.0%10.0% METER SHOP LEAD 3.5%0.0%3.5%3.0%10.0% WATER METER REP ASST 3.5%0.0%3.5%3.0%10.0% WTR MTR CRS CN TEC 3.5%0.0%3.5%3.0%10.0% Meter Reader -3.3%3.5%0.0%3.5%3.0%10.0% METER READER 3.5%0.0%3.5%3.0%10.0% METER READER-LEAD 3.5%0.0%3.5%3.0%10.0% Motorized Equipment Mechanic -6.0%3.5%2.5%3.5%3.0%12.5% EQUIPMENT MAINTENANCE SERVICE PERSONNEL 3.5%2.5%3.5%3.0%12.5% MOTOR EQUIP MECH I 3.5%2.5%3.5%3.0%12.5% MOTOR EQUIP MECH II 3.5%2.5%3.5%3.0%12.5% MOTOR EQUIP MECH-L 3.5%2.5%3.5%3.0%12.5% MOBILE SERVICE TECH 3.5%2.5%3.5%3.0%12.5% Park Maintenance Person -2.8%3.5%0.0%3.5%3.0%10.0% PARK MAINT PERSON 3.5%0.0%3.5%3.0%10.0% PARK MAINT - L 3.5%0.0%3.5%3.0%10.0% PARKS / GOLFCREW-LEAD 3.5%0.0%3.5%3.0%10.0% SPRINKLER SYS REPR 3.5%0.0%3.5%3.0%10.0% Park Ranger N/A 3.5%3.0%3.5%3.0%13.0% PARK RANGER 3.5%3.0%3.5%3.0%13.0% SR RANGER 3.5%3.0%3.5%3.0%13.0% Planner -1.5%3.5%0.0%3.5%3.0%10.0% PLANNER 3.5%0.0%3.5%3.0%10.0% ASSOCIATE PLANNER 3.5%0.0%3.5%3.0%10.0% SR PLANNER 3.5%0.0%3.5%3.0%10.0% CDBG COORD 3.5%0.0%3.5%3.0%10.0% BLDG/PLG TECHNICIAN 3.5%0.0%3.5%3.0%10.0% Programmer Analyst -4.4%3.5%0.9%3.5%3.0%10.9% PROG ANALYST 3.5%0.9%3.5%3.0%10.9% BUSINESS ANALYST 3.5%0.9%3.5%3.0%10.9% BUSINESS ANALYST - S 3.5%0.9%3.5%3.0%10.9% SR PROG ANALYST 3.5%0.9%3.5%3.0%10.9% GIS SPECIALIST 3.5%0.9%3.5%3.0%10.9% SCADA TECHNOLOGIST 3.5%0.9%3.5%3.0%10.9% TECHNOLOGIST 3.5%0.9%3.5%3.0%10.9% TECHNOLOGIST - S 3.5%0.9%3.5%3.0%10.9% COMM TECH 3.5%0.9%3.5%3.0%10.9% Public Safety Dispatcher II 1.7%3.5%5.0%3.5%3.0%15.0% PUB SAFETY DISP II 3.5%5.0%3.5%3.0%15.0% PUB SAFETY DISP I 3.5%5.0%3.5%3.0%15.0% PUB SAFETY DISP - L 3.5%5.0%3.5%3.0%15.0% Resource Planner -5.3%3.5%1.8%3.5%3.0%11.8% RESOURCE PLANNER 3.5%1.8%3.5%3.0%11.8% ASSOCIATE RES PLANNER 3.5%1.8%3.5%3.0%11.8% ASST RES PLANNER 3.5%1.8%3.5%3.0%11.8% UTIL MKT ANALYST 3.5%1.8%3.5%3.0%11.8% UTIL MKT ANALYST -S 3.5%1.8%3.5%3.0%11.8% SR MKT ANALYST 3.5%1.8%3.5%3.0%11.8% SR MKT ANALYST-S 3.5%1.8%3.5%3.0%11.8% UTIL RATE ANALYST 3.5%1.8%3.5%3.0%11.8% Senior Librarian -4.1%3.5%0.6%3.5%3.0%10.6% LIBRARIAN 3.5%0.6%3.5%3.0%10.6% SR LIBRARIAN 3.5%0.6%3.5%3.0%10.6% COORD LIBRARY PROG 3.5%0.6%3.5%3.0%10.6% Storekeeper -8.1%3.5%4.6%3.5%3.0%14.6% STOREKEEPER 3.5%4.6%3.5%3.0%14.6% EQUIP PARTS TECH 3.5%4.6%3.5%3.0%14.6% FLEET SVCS COORD 3.5%4.6%3.5%3.0%14.6% SR FLEET SVCS COORD 3.5%4.6%3.5%3.0%14.6% STOREKEEPER-L 3.5%4.6%3.5%3.0%14.6% Street Maint Assistant -1.6%3.5%0.0%3.5%3.0%10.0% ST MAINT ASST 3.5%0.0%3.5%3.0%10.0% TRAF CONT MAINT I 3.5%0.0%3.5%3.0%10.0% TRAF CONT MAINT II 3.5%0.0%3.5%3.0%10.0% TRAF CONT MAINT-L 3.5%0.0%3.5%3.0%10.0% Tree Trimmer/Line Clearer -2.4%3.5%0.0%3.5%3.0%10.0% TREE TRIM/LN CLR 3.5%0.0%3.5%3.0%10.0% TREE MAINT ASST 3.5%0.0%3.5%3.0%10.0% TREE MAINT SPECIALIST 3.5%0.0%3.5%3.0%10.0% TREE TRIM/LN CLR-L 3.5%0.0%3.5%3.0%10.0% TREE TRM/LN CLR ASST 3.5%0.0%3.5%3.0%10.0% Utility Locator -4.2%3.5%0.7%3.5%3.0%10.7% UTIL LOCATOR 3.5%0.7%3.5%3.0%10.7% RESTORATION LEAD 5.9%3.5%0.7%3.5%3.0%16.6% WGW HEAVY EQUIPMENT OPERATOR 5.9%3.5%0.7%3.5%3.0%16.6% CATHODIC PROTECTION TECH ASST 3.5%0.7%3.5%3.0%10.7% CATHODIC TECH 3.5%0.7%3.5%3.0%10.7% SR UTIL FIELD SVC RE 3.5%0.7%3.5%3.0%10.7% UTIL INSTALL/REP 3.5%0.7%3.5%3.0%10.7% UTIL INSTALL/REP - WELD 3.5%0.7%3.5%3.0%10.7% UTIL INSTALL/REP - WELD - L 3.5%0.7%3.5%3.0%10.7% UTIL INSTALL/REP AST 3.5%0.7%3.5%3.0%10.7% UTIL INSTALL/REP-L 3.5%0.7%3.5%3.0%10.7% FIELD SVCPERS WGW 3.5%0.7%3.5%3.0%10.7% ASSISTANT GAS MEASUREMENT AND CONTROL TECHNICIAN 3.5%0.7%3.5%3.0%10.7% GAS MEASUREMENT AND CONTROL TECHNICIAN 3.5%0.7%3.5%3.0%10.7% UTIL FLD SVCS REP 3.5%0.7%3.5%3.0%10.7% MAINT. MECHANIC-WELDING 3.5%0.7%3.5%3.0%10.7% WQC Plant Operator II 2.8%3.5%0.0%3.5%3.0%10.0% WQC PLT OPER II 3.5%0.0%3.5%3.0%10.0% WQC PLT OPER I 3.5%0.0%3.5%3.0%10.0% WQC PLT OPER TRN 3.5%0.0%3.5%3.0%10.0% SR OPERATOR WQC 3.5%0.0%3.5%3.0%10.0% SR MECH 3.5%0.0%3.5%3.0%10.0% WATER SYSTEM OPER I 3.5%0.0%3.5%3.0%10.0% WATER SYSTEM OPER II 3.5%0.0%3.5%3.0%10.0% SR WATER SYS OPER 3.5%0.0%3.5%3.0%10.0% PLANT MECH 3.5%0.0%3.5%3.0%10.0% City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 206 non-exempt Acct Assistant 1 $24.62 $25.48 $26.24 206 2 $25.91 $26.82 $27.62 206 3 $27.27 $28.23 $29.07 206 4 $28.70 $29.71 $30.60 206 5 $30.21 $31.27 $32.21 204 non-exempt Acct Spec 1 $28.76 $29.78 $30.67 204 2 $30.27 $31.34 $32.28 204 3 $31.86 $32.98 $33.97 204 4 $33.53 $34.71 $35.75 204 5 $35.29 $36.53 $37.63 207 non-exempt Acct Spec-Lead 1 $30.79 $31.88 $32.84 207 2 $32.41 $33.55 $34.56 207 3 $34.11 $35.31 $36.37 207 4 $35.90 $37.16 $38.28 207 5 $37.78 $39.11 $40.29 294 non-exempt Administrative Associate I 1 $26.53 $27.44 $28.29 294 2 $27.92 $28.88 $29.77 294 3 $29.38 $30.40 $31.33 294 4 $30.92 $32.00 $32.97 294 5 $32.54 $33.68 $34.70 295 non-exempt Administrative Associate II 1 $28.82 $29.83 $30.71 295 2 $30.33 $31.39 $32.32 295 3 $31.92 $33.04 $34.02 295 4 $33.59 $34.77 $35.81 295 5 $35.35 $36.59 $37.69 296 non-exempt Administrative Associate III 1 $30.87 $31.95 $32.92 296 2 $32.49 $33.63 $34.65 296 3 $34.20 $35.40 $36.47 296 4 $36.00 $37.26 $38.38 296 5 $37.89 $39.22 $40.40 1 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 276 non-exempt Animal Control Off 1 $27.27 $28.24 $29.08 276 2 $28.70 $29.72 $30.61 276 3 $30.21 $31.28 $32.22 276 4 $31.80 $32.92 $33.91 276 5 $33.47 $34.65 $35.69 312 non-exempt Animal Control Off - L 1 $29.18 $30.21 $31.13 312 2 $30.71 $31.79 $32.76 312 3 $32.32 $33.46 $34.48 312 4 $34.02 $35.22 $36.29 312 5 $35.81 $37.07 $38.19 244 non-exempt Assoc Buyer 1 $34.84 $36.07 $37.16 244 2 $36.67 $37.96 $39.11 244 3 $38.60 $39.95 $41.16 244 4 $40.63 $42.05 $43.32 244 5 $42.76 $44.26 $45.59 333 non-exempt Assoc Engineer 1 $45.83 $47.44 $48.87 333 2 $48.24 $49.93 $51.44 333 3 $50.77 $52.55 $54.14 333 4 $53.44 $55.31 $56.98 333 5 $56.25 $58.22 $59.97 353 non-exempt Assoc Planner 1 $40.07 $41.47 $42.71 353 2 $42.17 $43.65 $44.95 353 3 $44.38 $45.94 $47.31 353 4 $46.71 $48.35 $49.80 353 5 $49.16 $50.89 $52.42 247 non-exempt Assoc Power Engr 1 $48.80 $50.52 $52.02 247 2 $51.36 $53.17 $54.75 247 3 $54.06 $55.96 $57.63 247 4 $56.90 $58.90 $60.66 247 5 $59.89 $61.99 $63.85 2 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 269 non-exempt Assoc Res Planner 1 $44.46 $46.01 $47.40 269 2 $46.79 $48.43 $49.89 269 3 $49.25 $50.97 $52.51 269 4 $51.84 $53.65 $55.27 269 5 $54.56 $56.47 $58.17 330 non-exempt Asst Engineer 1 $41.52 $42.97 $44.27 330 2 $43.70 $45.23 $46.59 330 3 $45.99 $47.61 $49.04 330 4 $48.41 $50.11 $51.62 330 5 $50.95 $52.74 $54.33 256 non-exempt Asst Power Engr 1 $44.07 $45.62 $46.98 256 2 $46.38 $48.02 $49.45 256 3 $48.82 $50.54 $52.05 256 4 $51.38 $53.19 $54.78 256 5 $54.08 $55.98 $57.66 268 non-exempt Asst Res Planner 1 $40.13 $41.55 $42.79 268 2 $42.24 $43.73 $45.04 268 3 $44.46 $46.03 $47.41 268 4 $46.80 $48.45 $49.90 268 5 $49.26 $50.99 $52.52 299 non-exempt Bldg Inspector 1 $40.44 $41.86 $43.13 299 2 $42.56 $44.06 $45.39 299 3 $44.80 $46.37 $47.77 299 4 $47.15 $48.81 $50.28 299 5 $49.63 $51.37 $52.92 300 non-exempt Bldg Inspector Spec 1 $43.18 $44.69 $46.03 300 2 $45.45 $47.04 $48.45 300 3 $47.84 $49.51 $51.00 300 4 $50.35 $52.11 $53.68 300 5 $52.99 $54.85 $56.50 3 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 370 non-exempt Bldg Serviceperson 1 $23.73 $24.55 $25.29 370 2 $24.97 $25.84 $26.62 370 3 $26.28 $27.20 $28.02 370 4 $27.66 $28.63 $29.49 370 5 $29.11 $30.13 $31.04 371 non-exempt Bldg Serviceperson-L 1 $25.40 $26.29 $27.08 371 2 $26.73 $27.67 $28.50 371 3 $28.13 $29.12 $30.00 371 4 $29.61 $30.65 $31.57 371 5 $31.16 $32.26 $33.23 355 non-exempt Bldg/Plg Technician 1 $32.49 $33.63 $34.65 355 2 $34.20 $35.39 $36.47 355 3 $35.99 $37.25 $38.38 355 4 $37.88 $39.21 $40.39 355 5 $39.87 $41.27 $42.51 340 non-exempt Business Analyst 1 $57.06 $59.07 $60.84 340 2 $60.06 $62.17 $64.04 340 3 $63.22 $65.44 $67.41 340 4 $66.54 $68.88 $70.95 340 5 $70.04 $72.50 $74.68 3400 non-exempt Business Analyst - S 1 $57.06 $59.07 $60.84 3400 2 $60.06 $62.17 $64.04 3400 3 $63.22 $65.44 $67.41 3400 4 $66.54 $68.88 $70.95 3400 5 $70.04 $72.50 $74.68 212 non-exempt Buyer 1 $38.37 $39.71 $40.90 212 2 $40.38 $41.80 $43.05 212 3 $42.50 $43.99 $45.31 212 4 $44.73 $46.30 $47.69 212 5 $47.08 $48.73 $50.20 4 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 464 non-exempt Cathodic Protection Tech Assistant 1 $39.17 $40.55 $41.77 464 2 $41.23 $42.68 $43.96 464 3 $43.39 $44.92 $46.27 464 4 $45.67 $47.28 $48.70 464 5 $48.07 $49.76 $51.26 536 non-exempt Cathodic Tech 1 $48.07 $49.76 $51.27 536 2 $50.59 $52.37 $53.96 536 3 $53.25 $55.12 $56.79 536 4 $56.05 $58.02 $59.77 536 5 $59.00 $61.07 $62.91 208 non-exempt CDBG Coordinator 1 $42.81 $44.31 $45.64 208 2 $45.06 $46.64 $48.04 208 3 $47.43 $49.09 $50.56 208 4 $49.92 $51.67 $53.22 208 5 $52.54 $54.38 $56.02 408 non-exempt Cement Finisher 1 $34.93 $36.16 $37.24 408 2 $36.76 $38.06 $39.20 408 3 $38.69 $40.06 $41.26 408 4 $40.72 $42.16 $43.43 408 5 $42.86 $44.37 $45.71 409 non-exempt Cement Finisher Lead 1 $37.37 $38.67 $39.84 409 2 $39.33 $40.70 $41.93 409 3 $41.39 $42.84 $44.13 409 4 $43.56 $45.09 $46.45 409 5 $45.85 $47.46 $48.89 502 non-exempt Chemist 1 $38.90 $40.26 $41.48 502 2 $40.94 $42.37 $43.66 502 3 $43.09 $44.60 $45.95 502 4 $45.35 $46.94 $48.36 502 5 $47.73 $49.41 $50.90 5 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 239 non-exempt Chf Inspec WGW 1 $43.27 $44.78 $46.13 239 2 $45.54 $47.13 $48.55 239 3 $47.93 $49.61 $51.10 239 4 $50.45 $52.22 $53.78 239 5 $53.10 $54.96 $56.61 301 non-exempt Code Enforcement Off 1 $38.85 $40.22 $41.42 301 2 $40.89 $42.33 $43.60 301 3 $43.04 $44.55 $45.89 301 4 $45.30 $46.89 $48.30 301 5 $47.68 $49.35 $50.84 560 non-exempt Code Enforcement Off - L 1 $41.55 $43.02 $44.31 560 2 $43.73 $45.28 $46.64 560 3 $46.03 $47.66 $49.09 560 4 $48.45 $50.16 $51.67 560 5 $51.00 $52.79 $54.38 306 non-exempt Comm Tech 1 $39.80 $41.20 $42.43 306 2 $41.89 $43.36 $44.66 306 3 $44.09 $45.64 $47.01 306 4 $46.41 $48.04 $49.48 306 5 $48.85 $50.56 $52.08 702 non-exempt Community Serv Offcr 1 $29.67 $30.72 $31.65 702 2 $31.23 $32.33 $33.31 702 3 $32.87 $34.03 $35.06 702 4 $34.60 $35.82 $36.90 702 5 $36.42 $37.70 $38.84 320 non-exempt Community Service Officer - Lead 1 $31.74 $32.86 $33.84 320 2 $33.41 $34.58 $35.62 320 3 $35.16 $36.40 $37.49 320 4 $37.01 $38.31 $39.46 320 5 $38.95 $40.32 $41.53 6 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 341 non-exempt Coor Trans Sys Mgmt 1 $40.95 $42.37 $43.67 341 2 $43.10 $44.60 $45.96 341 3 $45.36 $46.94 $48.37 341 4 $47.74 $49.41 $50.91 341 5 $50.25 $52.01 $53.58 3410 non-exempt Coor Trans Sys Mgmt - S 1 $40.95 $42.37 $43.67 3410 2 $43.10 $44.60 $45.96 3410 3 $45.36 $46.94 $48.37 3410 4 $47.74 $49.41 $50.91 3410 5 $50.25 $52.01 $53.58 255 non-exempt Coord Library Prog 1 $37.16 $38.45 $39.61 255 2 $39.11 $40.47 $41.69 255 3 $41.16 $42.60 $43.88 255 4 $43.32 $44.84 $46.18 255 5 $45.59 $47.19 $48.61 342 non-exempt Coord Pub Wks Proj 1 $38.91 $40.27 $41.49 342 2 $40.95 $42.38 $43.67 342 3 $43.10 $44.61 $45.96 342 4 $45.36 $46.95 $48.37 342 5 $47.74 $49.42 $50.91 317 non-exempt Coord Rec Prog 1 $33.42 $34.59 $35.64 317 2 $35.17 $36.41 $37.51 317 3 $37.02 $38.32 $39.48 317 4 $38.96 $40.33 $41.55 317 5 $41.01 $42.45 $43.73 344 non-exempt Coord Utility Proj 1 $42.02 $43.50 $44.80 344 2 $44.23 $45.78 $47.15 344 3 $46.55 $48.18 $49.63 344 4 $48.99 $50.71 $52.24 344 5 $51.56 $53.37 $54.98 7 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 3440 non-exempt Coord Utility Proj - S 1 $42.02 $43.50 $44.80 3440 2 $44.23 $45.78 $47.15 3440 3 $46.55 $48.18 $49.63 3440 4 $48.99 $50.71 $52.24 3440 5 $51.56 $53.37 $54.98 242 non-exempt Coord Zero Waste 1 $37.35 $38.65 $39.82 242 2 $39.31 $40.68 $41.91 242 3 $41.37 $42.82 $44.11 242 4 $43.54 $45.07 $46.43 242 5 $45.83 $47.44 $48.87 205 non-exempt Court Liaison Officer 1 $38.62 $39.97 $41.18 205 2 $40.65 $42.07 $43.34 205 3 $42.78 $44.28 $45.62 205 4 $45.03 $46.61 $48.02 205 5 $47.40 $49.06 $50.54 214 non-exempt Crime Analyst 1 $38.62 $39.97 $41.18 214 2 $40.65 $42.07 $43.34 214 3 $42.78 $44.28 $45.62 214 4 $45.03 $46.61 $48.02 214 5 $47.40 $49.06 $50.54 415 non-exempt Cust Srv Specialist-L 1 $33.58 $34.75 $35.79 415 2 $35.34 $36.57 $37.67 415 3 $37.19 $38.49 $39.65 415 4 $39.14 $40.51 $41.73 415 5 $41.19 $42.64 $43.92 218 non-exempt Cust Svc Represent 1 $28.54 $29.55 $30.44 218 2 $30.04 $31.10 $32.04 218 3 $31.62 $32.73 $33.72 218 4 $33.28 $34.45 $35.49 218 5 $35.03 $36.26 $37.35 8 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 217 non-exempt Cust Svc Spec 1 $31.39 $32.49 $33.46 217 2 $33.04 $34.20 $35.22 217 3 $34.77 $35.99 $37.07 217 4 $36.60 $37.88 $39.02 217 5 $38.52 $39.87 $41.07 260 non-exempt Desktop Technician 1 $34.21 $35.40 $36.48 260 2 $36.01 $37.26 $38.39 260 3 $37.90 $39.22 $40.41 260 4 $39.89 $41.28 $42.53 260 5 $41.98 $43.45 $44.76 514 non-exempt Development Project Coordinator I 1 $31.07 $32.16 $33.13 514 2 $32.70 $33.85 $34.87 514 3 $34.42 $35.63 $36.70 514 4 $36.23 $37.50 $38.63 514 5 $38.13 $39.47 $40.66 515 non-exempt Development Project Coordinator II 1 $35.31 $36.53 $37.64 515 2 $37.16 $38.45 $39.62 515 3 $39.11 $40.47 $41.70 515 4 $41.16 $42.60 $43.89 515 5 $43.32 $44.84 $46.19 516 non-exempt Development Project Coordinator III 1 $38.94 $40.30 $41.52 516 2 $40.98 $42.42 $43.70 516 3 $43.13 $44.65 $45.99 516 4 $45.40 $46.99 $48.41 516 5 $47.78 $49.46 $50.95 533 non-exempt Elec Asst I 1 $33.39 $34.55 $35.59 533 2 $35.14 $36.36 $37.46 533 3 $36.98 $38.27 $39.43 533 4 $38.92 $40.28 $41.50 533 5 $40.96 $42.40 $43.68 9 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 267 non-exempt Elec Undgd Inspec 1 $42.04 $43.51 $44.83 267 2 $44.25 $45.80 $47.18 267 3 $46.57 $48.21 $49.66 267 4 $49.02 $50.74 $52.27 267 5 $51.60 $53.41 $55.02 345 non-exempt Electric Project Engineer 1 $58.47 $60.51 $62.32 345 2 $61.54 $63.69 $65.60 345 3 $64.77 $67.04 $69.05 345 4 $68.17 $70.56 $72.68 345 5 $71.75 $74.27 $76.50 3450 non-exempt Electric Project Engineer - S 1 $58.47 $60.51 $62.32 3450 2 $61.54 $63.69 $65.60 3450 3 $64.77 $67.04 $69.05 3450 4 $68.17 $70.56 $72.68 3450 5 $71.75 $74.27 $76.50 292 non-exempt Electric Underground Inspector - Lead 1 $44.96 $46.55 $47.94 292 2 $47.32 $48.99 $50.46 292 3 $49.81 $51.56 $53.11 292 4 $52.43 $54.27 $55.90 292 5 $55.18 $57.12 $58.84 527 non-exempt Electrical Equipment Tech 1 $42.97 $44.48 $45.81 527 2 $45.23 $46.82 $48.22 527 3 $47.61 $49.28 $50.75 527 4 $50.11 $51.87 $53.42 527 5 $52.74 $54.59 $56.23 530 non-exempt Electrician 1 $41.11 $42.55 $43.84 530 2 $43.27 $44.78 $46.14 530 3 $45.54 $47.13 $48.56 530 4 $47.93 $49.61 $51.11 530 5 $50.45 $52.22 $53.79 10 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 529 non-exempt Electrician-Appren 1 $38.92 $40.28 $41.50 529 2 $40.96 $42.39 $43.68 529 3 $43.11 $44.62 $45.97 529 4 $45.37 $46.96 $48.38 529 5 $47.75 $49.43 $50.92 535 non-exempt Electrician-Lead 1 $44.02 $45.57 $46.93 535 2 $46.33 $47.96 $49.40 535 3 $48.76 $50.48 $51.99 535 4 $51.32 $53.13 $54.72 535 5 $54.02 $55.92 $57.60 399 non-exempt Emergency Med Svs Data Specialist 1 $30.87 $31.95 $32.92 399 2 $32.49 $33.63 $34.65 399 3 $34.20 $35.40 $36.47 399 4 $36.00 $37.26 $38.38 399 5 $37.89 $39.22 $40.40 311 non-exempt Eng Tech I 1 $29.98 $31.03 $31.95 311 2 $31.55 $32.66 $33.63 311 3 $33.21 $34.37 $35.40 311 4 $34.95 $36.17 $37.26 311 5 $36.78 $38.07 $39.22 332 non-exempt Engineer 1 $51.63 $53.43 $55.05 332 2 $54.34 $56.24 $57.94 332 3 $57.19 $59.20 $60.98 332 4 $60.20 $62.31 $64.18 332 5 $63.36 $65.58 $67.55 323 non-exempt Engr Tech II 1 $32.43 $33.58 $34.58 323 2 $34.13 $35.34 $36.39 323 3 $35.92 $37.19 $38.30 323 4 $37.81 $39.14 $40.31 323 5 $39.79 $41.19 $42.43 11 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 319 non-exempt Engr Tech III 1 $36.21 $37.48 $38.61 319 2 $38.11 $39.45 $40.64 319 3 $40.11 $41.52 $42.77 319 4 $42.22 $43.70 $45.02 319 5 $44.44 $46.00 $47.38 257 non-exempt Environmental Spec 1 $42.58 $44.08 $45.41 257 2 $44.82 $46.39 $47.79 257 3 $47.17 $48.83 $50.30 257 4 $49.65 $51.39 $52.94 257 5 $52.26 $54.09 $55.72 211 non-exempt Equip Maint Serv Per 1 $26.03 $26.94 $27.76 211 2 $27.40 $28.35 $29.22 211 3 $28.84 $29.84 $30.75 211 4 $30.35 $31.41 $32.36 211 5 $31.94 $33.06 $34.06 396 non-exempt Equip Operator 1 $32.14 $33.27 $34.29 396 2 $33.83 $35.02 $36.09 396 3 $35.61 $36.86 $37.98 396 4 $37.48 $38.80 $39.97 396 5 $39.45 $40.84 $42.07 397 non-exempt Equip Operator - Lead 1 $34.39 $35.60 $36.67 397 2 $36.20 $37.47 $38.60 397 3 $38.10 $39.44 $40.63 397 4 $40.10 $41.51 $42.76 397 5 $42.21 $43.69 $45.01 250 non-exempt Equip Parts Tech 1 $27.92 $28.88 $29.77 250 2 $29.38 $30.40 $31.33 250 3 $30.92 $32.00 $32.97 250 4 $32.54 $33.68 $34.70 250 5 $34.25 $35.45 $36.52 12 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 203 non-exempt Facilities Asst 1 $26.79 $27.74 $28.58 203 2 $28.20 $29.20 $30.08 203 3 $29.68 $30.73 $31.66 203 4 $31.24 $32.34 $33.32 203 5 $32.88 $34.04 $35.07 374 non-exempt Facilities Carpenter 1 $34.93 $36.16 $37.24 374 2 $36.76 $38.06 $39.20 374 3 $38.69 $40.06 $41.26 374 4 $40.72 $42.16 $43.43 374 5 $42.86 $44.37 $45.71 375 non-exempt Facilities Elect 1 $34.07 $35.27 $36.33 375 2 $35.86 $37.12 $38.24 375 3 $37.74 $39.07 $40.25 375 4 $39.72 $41.12 $42.36 375 5 $41.81 $43.28 $44.58 373 non-exempt Facilities Maint-L 1 $45.12 $46.70 $48.09 373 2 $47.49 $49.15 $50.62 373 3 $49.98 $51.73 $53.28 373 4 $52.61 $54.45 $56.08 373 5 $55.37 $57.31 $59.03 377 non-exempt Facilities Painter 1 $34.93 $36.16 $37.24 377 2 $36.76 $38.06 $39.20 377 3 $38.69 $40.06 $41.26 377 4 $40.72 $42.16 $43.43 377 5 $42.86 $44.37 $45.71 376 non-exempt Facilities Tech 1 $36.31 $37.58 $38.72 376 2 $38.22 $39.55 $40.75 376 3 $40.23 $41.63 $42.89 376 4 $42.34 $43.82 $45.14 376 5 $44.56 $46.12 $47.51 13 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 462 non-exempt Field Service Pers WGW 1 $32.57 $33.71 $34.72 462 2 $34.28 $35.48 $36.54 462 3 $36.08 $37.34 $38.46 462 4 $37.97 $39.30 $40.48 462 5 $39.96 $41.36 $42.61 383 non-exempt Fleet Svcs Coord 1 $33.25 $34.40 $35.44 383 2 $34.99 $36.21 $37.30 383 3 $36.83 $38.11 $39.26 383 4 $38.76 $40.11 $41.32 383 5 $40.79 $42.22 $43.49 419 non-exempt Assistant Gas Measurement and Control Technician 1 $37.05 $38.37 $39.52 419 2 $39.00 $40.38 $41.60 419 3 $41.05 $42.50 $43.78 419 4 $43.21 $44.73 $46.08 419 5 $45.48 $47.08 $48.50 418 non-exempt Gas Measurement and Control Technician 1 $38.93 $40.28 $41.51 418 2 $40.97 $42.40 $43.69 418 3 $43.12 $44.63 $45.98 418 4 $45.38 $46.97 $48.39 418 5 $47.76 $49.44 $50.93 398 non-exempt Geographic Inform Syst Specialist 1 $47.90 $49.59 $51.09 398 2 $50.42 $52.19 $53.77 398 3 $53.07 $54.93 $56.59 398 4 $55.86 $57.82 $59.56 398 5 $58.80 $60.86 $62.69 390 non-exempt Heavy Equip Oper 1 $38.47 $39.83 $41.03 390 2 $40.49 $41.92 $43.18 390 3 $42.62 $44.12 $45.45 390 4 $44.86 $46.44 $47.84 390 5 $47.22 $48.88 $50.35 14 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 391 non-exempt Heavy Equip Oper-L 1 $41.16 $42.59 $43.87 391 2 $43.32 $44.83 $46.17 391 3 $45.59 $47.18 $48.60 391 4 $47.98 $49.66 $51.15 391 5 $50.50 $52.27 $53.84 TBD non-exempt Electric Heavy Equip Oper 1 $39.92 $41.33 $42.56 2 $42.02 $43.50 $44.80 3 $44.23 $45.78 $47.15 4 $46.55 $48.18 $49.63 5 $48.99 $50.71 $52.24 TBD non-exempt WGW Heavy Equip Oper 1 $38.73 $40.09 $41.29 2 $40.76 $42.19 $43.46 3 $42.90 $44.41 $45.74 4 $45.15 $46.74 $48.14 5 $47.52 $49.19 $50.67 389 non-exempt HEO/Installer Repairer 1 $40.35 $41.77 $43.02 389 2 $42.47 $43.96 $45.28 389 3 $44.70 $46.27 $47.66 389 4 $47.05 $48.70 $50.16 389 5 $49.52 $51.26 $52.80 508 non-exempt Ind Waste Inspec 1 $35.78 $37.04 $38.15 508 2 $37.66 $38.98 $40.15 508 3 $39.64 $41.03 $42.26 508 4 $41.72 $43.18 $44.48 508 5 $43.91 $45.45 $46.82 258 non-exempt Ind Waste Invtgtr 1 $40.20 $41.61 $42.86 258 2 $42.31 $43.79 $45.11 258 3 $44.53 $46.09 $47.48 258 4 $46.87 $48.51 $49.97 258 5 $49.33 $51.06 $52.60 15 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 365 non-exempt Industrial Waste Technician 1 $32.30 $33.44 $34.45 365 2 $34.00 $35.19 $36.26 365 3 $35.78 $37.04 $38.16 365 4 $37.66 $38.98 $40.16 365 5 $39.64 $41.03 $42.27 227 non-exempt Inspector, Field Svc 1 $39.07 $40.44 $41.65 227 2 $41.12 $42.56 $43.84 227 3 $43.28 $44.79 $46.14 227 4 $45.55 $47.14 $48.56 227 5 $47.94 $49.62 $51.11 308 non-exempt Instrum Elec 1 $38.77 $40.13 $41.34 308 2 $40.81 $42.24 $43.51 308 3 $42.95 $44.46 $45.79 308 4 $45.21 $46.79 $48.20 308 5 $47.58 $49.25 $50.73 293 non-exempt Educator 1 $29.89 $30.95 $31.88 293 2 $31.46 $32.57 $33.55 293 3 $33.11 $34.28 $35.31 293 4 $34.85 $36.08 $37.16 293 5 $36.68 $37.97 $39.11 503 non-exempt Laboratory Tech Wqc 1 $34.80 $36.02 $37.10 503 2 $36.63 $37.91 $39.05 503 3 $38.55 $39.90 $41.10 503 4 $40.57 $41.99 $43.26 503 5 $42.70 $44.20 $45.53 413 non-exempt Landfill Technician 1 $39.48 $40.86 $42.09 413 2 $41.55 $43.01 $44.30 413 3 $43.73 $45.27 $46.63 413 4 $46.03 $47.65 $49.08 413 5 $48.45 $50.15 $51.66 16 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 254 non-exempt Librarian 1 $30.00 $31.05 $31.98 254 2 $31.57 $32.68 $33.66 254 3 $33.23 $34.39 $35.43 254 4 $34.97 $36.20 $37.29 254 5 $36.81 $38.10 $39.25 252 non-exempt Library Associate 1 $26.96 $27.91 $28.74 252 2 $28.37 $29.37 $30.25 252 3 $29.86 $30.91 $31.84 252 4 $31.43 $32.53 $33.51 252 5 $33.08 $34.24 $35.27 253 non-exempt Library Specialist 1 $25.50 $26.41 $27.20 253 2 $26.84 $27.79 $28.63 253 3 $28.25 $29.25 $30.13 253 4 $29.73 $30.78 $31.71 253 5 $31.29 $32.39 $33.37 541 non-exempt Lineper/Cable Spl 1 $57.84 $59.86 $61.67 541 2 $60.88 $63.01 $64.91 541 3 $64.08 $66.32 $68.32 541 4 $67.45 $69.81 $71.91 541 5 $70.99 $73.48 $75.69 542 non-exempt Lineper/Cable Spl-L 1 $61.91 $64.06 $65.99 542 2 $65.16 $67.43 $69.46 542 3 $68.58 $70.97 $73.11 542 4 $72.18 $74.70 $76.95 542 5 $75.97 $78.63 $80.99 531 non-exempt Lineperson/Cable Spl-T 1 $55.09 $57.03 $58.73 531 2 $57.98 $60.03 $61.82 531 3 $61.03 $63.18 $65.07 531 4 $64.24 $66.50 $68.49 531 5 $67.62 $69.99 $72.09 17 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 532 non-exempt Lineperson/Cable Spl-TL 1 $58.91 $60.99 $62.82 532 2 $62.01 $64.19 $66.12 532 3 $65.27 $67.56 $69.59 532 4 $68.70 $71.11 $73.25 532 5 $72.31 $74.85 $77.10 528 non-exempt Lnper/Cbl Spl-Appren 1 $49.69 $51.44 $52.98 528 2 $52.30 $54.14 $55.76 528 3 $55.05 $56.98 $58.69 528 4 $57.94 $59.97 $61.77 528 5 $60.98 $63.12 $65.02 213 non-exempt Mailing Svcs Spec 1 $22.57 $23.36 $24.06 213 2 $23.75 $24.58 $25.32 213 3 $25.00 $25.87 $26.65 213 4 $26.31 $27.23 $28.05 213 5 $27.69 $28.66 $29.52 291 non-exempt Maintenance Mechanic-Welding 1 $39.14 $40.51 $41.73 291 2 $41.19 $42.64 $43.92 291 3 $43.35 $44.88 $46.23 291 4 $45.63 $47.24 $48.66 291 5 $48.03 $49.72 $51.22 346 non-exempt Management Assistant 1 $33.56 $34.73 $35.77 346 2 $35.32 $36.55 $37.65 346 3 $37.17 $38.47 $39.63 346 4 $39.12 $40.49 $41.71 346 5 $41.17 $42.62 $43.90 3460 non-exempt Management Assistant - S 1 $33.56 $34.73 $35.77 3460 2 $35.32 $36.55 $37.65 3460 3 $37.17 $38.47 $39.63 3460 4 $39.12 $40.49 $41.71 3460 5 $41.17 $42.62 $43.90 18 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 216 non-exempt Marketing Eng 1 $51.63 $53.43 $55.05 216 2 $54.34 $56.24 $57.94 216 3 $57.19 $59.20 $60.98 216 4 $60.20 $62.31 $64.18 216 5 $63.36 $65.58 $67.55 241 non-exempt Meter Reader 1 $26.82 $27.77 $28.61 241 2 $28.23 $29.23 $30.11 241 3 $29.71 $30.76 $31.69 241 4 $31.27 $32.37 $33.35 241 5 $32.91 $34.07 $35.10 240 non-exempt Meter Reader-Lead 1 $28.70 $29.71 $30.61 240 2 $30.21 $31.27 $32.22 240 3 $31.79 $32.91 $33.91 240 4 $33.46 $34.64 $35.69 240 5 $35.22 $36.46 $37.56 369 non-exempt Meter Shop Lead 1 $33.22 $34.39 $35.41 369 2 $34.96 $36.19 $37.27 369 3 $36.80 $38.09 $39.23 369 4 $38.73 $40.09 $41.29 369 5 $40.76 $42.19 $43.46 552 non-exempt Metering Technician 1 $50.11 $51.87 $53.43 552 2 $52.74 $54.59 $56.24 552 3 $55.51 $57.46 $59.19 552 4 $58.43 $60.48 $62.30 552 5 $61.50 $63.66 $65.57 553 non-exempt Metering Technician – Lead 1 $53.62 $55.51 $57.19 553 2 $56.44 $58.43 $60.19 553 3 $59.41 $61.50 $63.35 553 4 $62.53 $64.73 $66.68 553 5 $65.82 $68.13 $70.18 19 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 384 non-exempt Mobile Service Tech 1 $38.73 $40.09 $41.29 384 2 $40.76 $42.19 $43.46 384 3 $42.90 $44.41 $45.74 384 4 $45.15 $46.74 $48.14 384 5 $47.52 $49.19 $50.67 381 non-exempt Motor Equip Mech-L 1 $39.46 $40.85 $42.07 381 2 $41.53 $42.99 $44.28 381 3 $43.71 $45.25 $46.61 381 4 $46.01 $47.63 $49.06 381 5 $48.43 $50.13 $51.64 286 non-exempt Motor Equipment Mechanic I 1 $34.17 $35.36 $36.44 286 2 $35.96 $37.22 $38.35 286 3 $37.85 $39.17 $40.36 286 4 $39.84 $41.23 $42.48 286 5 $41.93 $43.40 $44.71 287 non-exempt Motor Equipment Mechanic II 1 $36.88 $38.19 $39.33 287 2 $38.82 $40.19 $41.40 287 3 $40.86 $42.30 $43.57 287 4 $43.01 $44.52 $45.86 287 5 $45.27 $46.86 $48.27 230 non-exempt Offset Equip Op 1 $25.59 $26.49 $27.28 230 2 $26.93 $27.88 $28.71 230 3 $28.34 $29.34 $30.22 230 4 $29.83 $30.88 $31.81 230 5 $31.40 $32.50 $33.48 543 non-exempt Overhead Underground Troubleman 1 $60.76 $62.89 $64.78 543 2 $63.95 $66.19 $68.18 543 3 $67.31 $69.67 $71.76 543 4 $70.85 $73.33 $75.53 543 5 $74.57 $77.18 $79.50 20 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 452 non-exempt Park Maint - Lead 1 $32.93 $34.10 $35.13 452 2 $34.66 $35.89 $36.97 452 3 $36.48 $37.77 $38.91 452 4 $38.40 $39.75 $40.95 452 5 $40.42 $41.84 $43.10 451 non-exempt Park Maint Person 1 $28.42 $29.43 $30.32 451 2 $29.91 $30.97 $31.91 451 3 $31.48 $32.59 $33.58 451 4 $33.13 $34.30 $35.34 451 5 $34.87 $36.10 $37.19 281 non-exempt Park Ranger 1 $32.26 $33.40 $34.39 281 2 $33.95 $35.15 $36.19 281 3 $35.73 $36.99 $38.09 281 4 $37.61 $38.93 $40.09 281 5 $39.58 $40.97 $42.20 570 non-exempt Parking Operations Lead 1 $50.27 $52.03 $53.60 570 2 $52.91 $54.76 $56.42 570 3 $55.69 $57.64 $59.38 570 4 $58.62 $60.67 $62.50 570 5 $61.70 $63.86 $65.78 460 non-exempt Parks/Golf Crew-Lead 1 $30.92 $32.00 $32.96 460 2 $32.54 $33.68 $34.69 460 3 $34.25 $35.45 $36.51 460 4 $36.05 $37.31 $38.43 460 5 $37.94 $39.27 $40.45 348 non-exempt Payroll Analyst 1 $34.30 $35.51 $36.56 348 2 $36.10 $37.37 $38.48 348 3 $37.99 $39.33 $40.50 348 4 $39.98 $41.39 $42.63 348 5 $42.08 $43.56 $44.87 21 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 3480 non-exempt Payroll Analyst - S 1 $34.30 $35.51 $36.56 3480 2 $36.10 $37.37 $38.48 3480 3 $37.99 $39.33 $40.50 3480 4 $39.98 $41.39 $42.63 3480 5 $42.08 $43.56 $44.87 352 non-exempt Planner 1 $42.81 $44.31 $45.64 352 2 $45.06 $46.64 $48.04 352 3 $47.43 $49.09 $50.56 352 4 $49.92 $51.67 $53.22 352 5 $52.54 $54.38 $56.02 347 non-exempt Planning Arborist 1 $47.31 $48.97 $50.44 347 2 $49.79 $51.54 $53.09 347 3 $52.41 $54.25 $55.88 347 4 $55.16 $57.10 $58.82 347 5 $58.06 $60.10 $61.91 3470 non-exempt Planning Arborist - S 1 $47.31 $48.97 $50.44 3470 2 $49.79 $51.54 $53.09 3470 3 $52.41 $54.25 $55.88 3470 4 $55.16 $57.10 $58.82 3470 5 $58.06 $60.10 $61.91 304 non-exempt Plans Check Engr 1 $50.14 $51.89 $53.45 304 2 $52.77 $54.62 $56.26 304 3 $55.54 $57.49 $59.22 304 4 $58.46 $60.51 $62.33 304 5 $61.53 $63.69 $65.61 513 non-exempt Plans Examiner 1 $41.04 $42.49 $43.76 513 2 $43.20 $44.72 $46.06 513 3 $45.47 $47.07 $48.48 513 4 $47.86 $49.54 $51.03 513 5 $50.37 $52.14 $53.71 22 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 517 non-exempt Plant Mechanic 1 $37.95 $39.28 $40.46 517 2 $39.94 $41.34 $42.58 517 3 $42.04 $43.51 $44.82 517 4 $44.25 $45.79 $47.17 517 5 $46.57 $48.20 $49.65 321 non-exempt Police Records Specialist - Lead 1 $30.73 $31.80 $32.76 321 2 $32.34 $33.47 $34.48 321 3 $34.04 $35.23 $36.29 321 4 $35.83 $37.08 $38.20 321 5 $37.71 $39.03 $40.21 313 non-exempt Police Records Specialist I 1 $27.29 $28.26 $29.11 313 2 $28.72 $29.74 $30.64 313 3 $30.23 $31.30 $32.25 313 4 $31.82 $32.94 $33.94 313 5 $33.49 $34.67 $35.72 314 non-exempt Police Records Specialist II 1 $28.71 $29.73 $30.63 314 2 $30.22 $31.29 $32.24 314 3 $31.81 $32.93 $33.93 314 4 $33.48 $34.66 $35.71 314 5 $35.24 $36.48 $37.58 246 non-exempt Power Engr 1 $55.11 $57.04 $58.77 246 2 $58.01 $60.04 $61.86 246 3 $61.06 $63.20 $65.11 246 4 $64.27 $66.52 $68.53 246 5 $67.65 $70.02 $72.13 270 non-exempt Prod Arts/Sci Prog 1 $36.24 $37.51 $38.63 270 2 $38.14 $39.48 $40.66 270 3 $40.14 $41.55 $42.80 270 4 $42.25 $43.73 $45.05 270 5 $44.47 $46.03 $47.42 23 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 232 non-exempt Prog-Analyst 1 $46.11 $47.72 $49.16 232 2 $48.53 $50.23 $51.74 232 3 $51.08 $52.87 $54.46 232 4 $53.76 $55.65 $57.32 232 5 $56.58 $58.57 $60.33 265 non-exempt Program Assistant 1 $27.56 $28.52 $29.40 265 2 $29.01 $30.02 $30.94 265 3 $30.53 $31.60 $32.56 265 4 $32.13 $33.26 $34.27 265 5 $33.82 $35.01 $36.07 302 non-exempt Program Assistant I 1 $29.24 $30.26 $31.17 302 2 $30.77 $31.85 $32.81 302 3 $32.38 $33.52 $34.53 302 4 $34.08 $35.28 $36.34 302 5 $35.87 $37.13 $38.25 303 non-exempt Program Assistant II 1 $31.41 $32.51 $33.49 303 2 $33.06 $34.22 $35.25 303 3 $34.80 $36.02 $37.10 303 4 $36.63 $37.91 $39.05 303 5 $38.55 $39.90 $41.10 368 non-exempt Program Coordinator 1 $31.28 $32.38 $33.36 368 2 $32.92 $34.08 $35.11 368 3 $34.65 $35.87 $36.95 368 4 $36.47 $37.75 $38.89 368 5 $38.38 $39.73 $40.93 349 non-exempt Project Engineer 1 $55.57 $57.51 $59.23 349 2 $58.49 $60.53 $62.34 349 3 $61.56 $63.71 $65.62 349 4 $64.79 $67.06 $69.07 349 5 $68.19 $70.58 $72.70 24 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 3490 non-exempt Project Engineer - S 1 $55.57 $57.51 $59.23 3490 2 $58.49 $60.53 $62.34 3490 3 $61.56 $63.71 $65.62 3490 4 $64.79 $67.06 $69.07 3490 5 $68.19 $70.58 $72.70 209 non-exempt Property Evid Tech 1 $29.70 $30.75 $31.68 209 2 $31.26 $32.36 $33.34 209 3 $32.90 $34.06 $35.09 209 4 $34.63 $35.85 $36.93 209 5 $36.45 $37.73 $38.87 262 non-exempt Resource Planner 1 $52.74 $54.58 $56.23 262 2 $55.51 $57.45 $59.18 262 3 $58.43 $60.47 $62.29 262 4 $61.50 $63.65 $65.56 262 5 $64.73 $67.00 $69.01 366 non-exempt Restoration Lead 1 $41.46 $42.92 $44.22 366 2 $43.64 $45.17 $46.54 366 3 $45.93 $47.54 $48.98 366 4 $48.34 $50.04 $51.55 366 5 $50.88 $52.67 $54.26 554 non-exempt SCADA Technologist 1 $56.04 $57.99 $59.74 554 2 $58.98 $61.04 $62.88 554 3 $62.08 $64.25 $66.18 554 4 $65.34 $67.63 $69.66 554 5 $68.77 $71.18 $73.32 385 non-exempt Senior Fleet Services Coordinator 1 $38.19 $39.53 $40.72 385 2 $40.19 $41.61 $42.86 385 3 $42.30 $43.79 $45.11 385 4 $44.52 $46.09 $47.48 385 5 $46.86 $48.51 $49.97 25 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 461 non-exempt Sprinkler Sys Repr 1 $28.88 $29.91 $30.81 461 2 $30.40 $31.48 $32.43 461 3 $32.00 $33.13 $34.13 461 4 $33.68 $34.87 $35.92 461 5 $35.45 $36.70 $37.81 360 non-exempt Sr Buyer 1 $40.28 $41.70 $42.95 360 2 $42.39 $43.89 $45.21 360 3 $44.62 $46.19 $47.58 360 4 $46.96 $48.62 $50.08 360 5 $49.43 $51.17 $52.71 3600 non-exempt Sr Buyer - S 1 $40.28 $41.70 $42.95 3600 2 $42.39 $43.89 $45.21 3600 3 $44.62 $46.19 $47.58 3600 4 $46.96 $48.62 $50.08 3600 5 $49.43 $51.17 $52.71 224 non-exempt Sr Chemist 1 $43.21 $44.73 $46.07 224 2 $45.48 $47.08 $48.49 224 3 $47.87 $49.55 $51.04 224 4 $50.38 $52.15 $53.72 224 5 $53.03 $54.89 $56.54 544 non-exempt Sr Industrial Waste Investigator 1 $45.98 $47.59 $49.03 544 2 $48.39 $50.09 $51.61 544 3 $50.93 $52.72 $54.32 544 4 $53.61 $55.49 $57.17 544 5 $56.43 $58.41 $60.17 512 non-exempt Sr Instrum Elect 1 $42.35 $43.83 $45.13 512 2 $44.57 $46.13 $47.50 512 3 $46.91 $48.55 $50.00 512 4 $49.37 $51.10 $52.63 512 5 $51.96 $53.78 $55.40 26 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 251 non-exempt Sr Librarian 1 $34.06 $35.26 $36.32 251 2 $35.85 $37.11 $38.23 251 3 $37.73 $39.06 $40.24 251 4 $39.71 $41.11 $42.35 251 5 $41.80 $43.27 $44.57 504 non-exempt Sr. Mech 1 $41.63 $43.09 $44.39 504 2 $43.82 $45.35 $46.72 504 3 $46.12 $47.73 $49.17 504 4 $48.54 $50.24 $51.75 504 5 $51.09 $52.88 $54.47 361 non-exempt Sr Mkt Analyst 1 $48.39 $50.09 $51.61 361 2 $50.93 $52.72 $54.32 361 3 $53.61 $55.49 $57.17 361 4 $56.43 $58.41 $60.17 361 5 $59.40 $61.48 $63.33 3610 non-exempt Sr Mkt Analyst - S 1 $48.39 $50.09 $51.61 3610 2 $50.93 $52.72 $54.32 3610 3 $53.61 $55.49 $57.17 3610 4 $56.43 $58.41 $60.17 3610 5 $59.40 $61.48 $63.33 506 non-exempt Sr Operator Wqc 1 $43.30 $44.81 $46.15 506 2 $45.57 $47.16 $48.57 506 3 $47.96 $49.64 $51.12 506 4 $50.48 $52.25 $53.81 506 5 $53.13 $54.99 $56.64 318 non-exempt Sr Planner 1 $49.46 $51.19 $52.73 318 2 $52.06 $53.88 $55.50 318 3 $54.79 $56.71 $58.42 318 4 $57.67 $59.69 $61.49 318 5 $60.70 $62.83 $64.72 27 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 280 non-exempt Sr Ranger 1 $35.68 $36.93 $38.04 280 2 $37.55 $38.87 $40.04 280 3 $39.52 $40.91 $42.14 280 4 $41.60 $43.06 $44.35 280 5 $43.78 $45.32 $46.68 261 non-exempt Sr Util Field Svc Rep 1 $42.57 $44.07 $45.40 261 2 $44.81 $46.38 $47.78 261 3 $47.16 $48.82 $50.29 261 4 $49.64 $51.38 $52.93 261 5 $52.25 $54.08 $55.71 501 non-exempt Sr Water Sys Oper 1 $41.26 $42.71 $44.00 501 2 $43.43 $44.95 $46.31 501 3 $45.71 $47.31 $48.74 501 4 $48.11 $49.80 $51.30 501 5 $50.64 $52.42 $54.00 405 non-exempt St Maint Asst 1 $26.97 $27.92 $28.75 405 2 $28.38 $29.38 $30.26 405 3 $29.87 $30.92 $31.85 405 4 $31.44 $32.54 $33.52 405 5 $33.09 $34.25 $35.28 392 non-exempt St Sweeper Op 1 $32.10 $33.22 $34.22 392 2 $33.78 $34.96 $36.02 392 3 $35.55 $36.80 $37.91 392 4 $37.42 $38.73 $39.90 392 5 $39.38 $40.76 $41.99 248 non-exempt Storekeeper 1 $29.21 $30.23 $31.15 248 2 $30.74 $31.82 $32.78 248 3 $32.35 $33.49 $34.50 248 4 $34.05 $35.25 $36.31 248 5 $35.84 $37.10 $38.22 28 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 288 non-exempt Storekeeper-L 1 $31.26 $32.36 $33.34 288 2 $32.90 $34.06 $35.09 288 3 $34.63 $35.85 $36.93 288 4 $36.45 $37.73 $38.87 288 5 $38.36 $39.71 $40.91 545 non-exempt Street Light, Traffic Signal and Fiber – Apprentice 1 $45.36 $46.94 $48.37 545 2 $47.74 $49.41 $50.91 545 3 $50.25 $52.01 $53.58 545 4 $52.89 $54.74 $56.39 545 5 $55.67 $57.62 $59.35 547 non-exempt Street Light, Traffic Signal and Fiber – Lead 1 $51.29 $53.09 $54.70 547 2 $53.98 $55.88 $57.57 547 3 $56.82 $58.82 $60.59 547 4 $59.81 $61.91 $63.77 547 5 $62.95 $65.16 $67.12 546 non-exempt Street Light, Traffic Signal and Fiber Technician 1 $47.92 $49.60 $51.10 546 2 $50.44 $52.21 $53.78 546 3 $53.09 $54.95 $56.61 546 4 $55.88 $57.84 $59.58 546 5 $58.82 $60.88 $62.71 549 non-exempt Substation Electrician 1 $52.30 $54.13 $55.75 549 2 $55.05 $56.97 $58.68 549 3 $57.94 $59.96 $61.76 549 4 $60.98 $63.11 $65.01 549 5 $64.18 $66.43 $68.43 548 non-exempt Substation Electrician - Apprentice 1 $49.50 $51.24 $52.78 548 2 $52.10 $53.93 $55.55 548 3 $54.84 $56.76 $58.47 548 4 $57.72 $59.74 $61.54 548 5 $60.75 $62.88 $64.77 29 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 550 non-exempt Substation Electrician - Lead 1 $55.95 $57.92 $59.66 550 2 $58.89 $60.96 $62.79 550 3 $61.98 $64.16 $66.09 550 4 $65.24 $67.53 $69.56 550 5 $68.67 $71.08 $73.22 326 non-exempt Surveying Asst 1 $36.34 $37.62 $38.76 326 2 $38.25 $39.59 $40.79 326 3 $40.26 $41.67 $42.93 326 4 $42.37 $43.86 $45.18 326 5 $44.59 $46.16 $47.55 325 non-exempt Surveyor, Public Wks 1 $39.53 $40.92 $42.16 325 2 $41.61 $43.07 $44.37 325 3 $43.80 $45.33 $46.70 325 4 $46.10 $47.71 $49.15 325 5 $48.52 $50.22 $51.73 362 non-exempt Technologist 1 $57.06 $59.07 $60.84 362 2 $60.06 $62.17 $64.04 362 3 $63.22 $65.44 $67.41 362 4 $66.54 $68.88 $70.95 362 5 $70.04 $72.50 $74.68 3620 non-exempt Technologist - S 1 $57.06 $59.07 $60.84 3620 2 $60.06 $62.17 $64.04 3620 3 $63.22 $65.44 $67.41 3620 4 $66.54 $68.88 $70.95 3620 5 $70.04 $72.50 $74.68 229 non-exempt Theater Specialist 1 $38.76 $40.10 $41.32 229 2 $40.79 $42.21 $43.49 229 3 $42.93 $44.43 $45.77 229 4 $45.18 $46.76 $48.17 229 5 $47.55 $49.22 $50.70 30 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 406 non-exempt Traf Cont Maint I 1 $31.56 $32.67 $33.64 406 2 $33.22 $34.38 $35.41 406 3 $34.96 $36.18 $37.27 406 4 $36.79 $38.08 $39.23 406 5 $38.72 $40.08 $41.29 412 non-exempt Traf Cont Maint Ii 1 $29.23 $30.25 $31.16 412 2 $30.76 $31.84 $32.80 412 3 $32.37 $33.51 $34.52 412 4 $34.07 $35.27 $36.33 412 5 $35.86 $37.12 $38.24 407 non-exempt Traf Cont Maint-L 1 $33.77 $34.96 $36.02 407 2 $35.54 $36.80 $37.91 407 3 $37.41 $38.73 $39.90 407 4 $39.37 $40.76 $41.99 407 5 $41.44 $42.90 $44.19 575 non-exempt Traffic Engineering Lead 1 $58.47 $60.51 $62.32 575 2 $61.54 $63.69 $65.60 575 3 $64.77 $67.04 $69.05 575 4 $68.17 $70.56 $72.68 575 5 $71.75 $74.27 $76.50 435 non-exempt Tree Maint Asst 1 $27.76 $28.73 $29.61 435 2 $29.22 $30.24 $31.16 435 3 $30.75 $31.83 $32.79 435 4 $32.36 $33.50 $34.51 435 5 $34.06 $35.26 $36.32 434 non-exempt Tree Maintenance Specialist 1 $32.39 $33.53 $34.54 434 2 $34.09 $35.29 $36.35 434 3 $35.88 $37.14 $38.26 434 4 $37.76 $39.09 $40.27 434 5 $39.74 $41.14 $42.38 31 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 430 non-exempt Tree Trim/Ln Clr 1 $31.90 $33.01 $34.00 430 2 $33.57 $34.74 $35.78 430 3 $35.33 $36.56 $37.66 430 4 $37.18 $38.48 $39.64 430 5 $39.13 $40.50 $41.72 431 non-exempt Tree Trim/Ln Clr-L 1 $34.11 $35.31 $36.36 431 2 $35.90 $37.16 $38.27 431 3 $37.78 $39.11 $40.28 431 4 $39.76 $41.16 $42.39 431 5 $41.85 $43.32 $44.62 432 non-exempt Tree Trm/Ln Clr Asst 1 $30.04 $31.11 $32.05 432 2 $31.62 $32.74 $33.73 432 3 $33.28 $34.46 $35.50 432 4 $35.03 $36.27 $37.36 432 5 $36.87 $38.17 $39.32 223 non-exempt Util Acctg Tech 1 $31.07 $32.16 $33.13 223 2 $32.70 $33.85 $34.87 223 3 $34.42 $35.63 $36.70 223 4 $36.23 $37.50 $38.63 223 5 $38.13 $39.47 $40.66 272 non-exempt Util Comp Tech 1 $57.84 $59.86 $61.67 272 2 $60.88 $63.01 $64.91 272 3 $64.08 $66.32 $68.32 272 4 $67.45 $69.81 $71.91 272 5 $70.99 $73.48 $75.69 273 non-exempt Util Comp Tech-L 1 $61.91 $64.06 $65.99 273 2 $65.16 $67.43 $69.46 273 3 $68.58 $70.97 $73.11 273 4 $72.18 $74.70 $76.95 273 5 $75.97 $78.63 $80.99 32 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 219 non-exempt Util Credit/Col Spec 1 $37.01 $38.30 $39.46 219 2 $38.95 $40.31 $41.53 219 3 $41.00 $42.43 $43.71 219 4 $43.15 $44.66 $46.01 219 5 $45.42 $47.01 $48.43 310 non-exempt Util Engr Estimator 1 $48.54 $50.24 $51.75 310 2 $51.09 $52.88 $54.47 310 3 $53.77 $55.66 $57.33 310 4 $56.60 $58.58 $60.34 310 5 $59.57 $61.66 $63.51 486 non-exempt Util Fld Svcs Rep 1 $39.81 $41.22 $42.45 486 2 $41.90 $43.38 $44.68 486 3 $44.10 $45.66 $47.03 486 4 $46.42 $48.06 $49.50 486 5 $48.86 $50.58 $52.10 480 non-exempt Util Install/Rep 1 $38.82 $40.19 $41.39 480 2 $40.86 $42.30 $43.56 480 3 $43.01 $44.52 $45.85 480 4 $45.27 $46.86 $48.26 480 5 $47.65 $49.32 $50.80 481 non-exempt Util Install/Rep Ast 1 $32.92 $34.08 $35.11 481 2 $34.65 $35.87 $36.95 481 3 $36.47 $37.75 $38.89 481 4 $38.38 $39.73 $40.93 481 5 $40.40 $41.82 $43.08 479 non-exempt Util Install/Rep-L 1 $42.37 $43.85 $45.16 479 2 $44.59 $46.15 $47.53 479 3 $46.93 $48.57 $50.03 479 4 $49.40 $51.12 $52.66 479 5 $51.99 $53.81 $55.43 33 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 363 non-exempt Util Key Acct Rep 1 $44.11 $45.66 $47.04 363 2 $46.43 $48.06 $49.51 363 3 $48.87 $50.58 $52.11 363 4 $51.44 $53.24 $54.85 363 5 $54.14 $56.04 $57.73 3630 non-exempt Util Key Acct Rep -S 1 $44.11 $45.66 $47.04 3630 2 $46.43 $48.06 $49.51 3630 3 $48.87 $50.58 $52.11 3630 4 $51.44 $53.24 $54.85 3630 5 $54.14 $56.04 $57.73 271 non-exempt Util Locator 1 $38.38 $39.71 $40.91 271 2 $40.39 $41.80 $43.06 271 3 $42.51 $44.00 $45.32 271 4 $44.74 $46.31 $47.70 271 5 $47.09 $48.74 $50.21 215 non-exempt Util Marketing Program Admin 1 $41.90 $43.38 $44.68 215 2 $44.10 $45.66 $47.03 215 3 $46.42 $48.06 $49.50 215 4 $48.86 $50.58 $52.10 215 5 $51.43 $53.24 $54.84 233 non-exempt Util Rate Analyst 1 $41.11 $42.55 $43.84 233 2 $43.27 $44.78 $46.14 233 3 $45.54 $47.13 $48.56 233 4 $47.93 $49.61 $51.11 233 5 $50.45 $52.22 $53.79 307 non-exempt Util Syst Oper 1 $64.77 $67.04 $69.05 307 2 $68.17 $70.56 $72.68 307 3 $71.75 $74.27 $76.50 307 4 $75.52 $78.17 $80.52 307 5 $79.49 $82.28 $84.75 34 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 322 non-exempt Util Syst Oper in Training 1 $61.53 $63.68 $65.59 322 2 $64.76 $67.03 $69.04 322 3 $68.16 $70.55 $72.67 322 4 $71.74 $74.26 $76.49 322 5 $75.51 $78.16 $80.51 284 non-exempt Utilities Engineer Estimator Lead 1 $51.93 $53.76 $55.37 284 2 $54.66 $56.58 $58.28 284 3 $57.53 $59.55 $61.34 284 4 $60.55 $62.68 $64.56 284 5 $63.73 $65.97 $67.95 290 non-exempt Utl Install Repair Lead-Welding Cert 1 $43.34 $44.87 $46.22 290 2 $45.62 $47.23 $48.65 290 3 $48.02 $49.71 $51.21 290 4 $50.54 $52.32 $53.90 290 5 $53.20 $55.07 $56.73 289 non-exempt Utl Install Repair-Welding Cert 1 $40.35 $41.77 $43.02 289 2 $42.47 $43.96 $45.28 289 3 $44.70 $46.27 $47.66 289 4 $47.05 $48.70 $50.16 289 5 $49.52 $51.26 $52.80 274 non-exempt Volunteer Coord 1 $32.89 $34.05 $35.07 274 2 $34.62 $35.84 $36.91 274 3 $36.44 $37.72 $38.85 274 4 $38.35 $39.70 $40.89 274 5 $40.36 $41.78 $43.04 482 non-exempt Water Meter Rep Asst 1 $27.29 $28.26 $29.11 482 2 $28.72 $29.74 $30.64 482 3 $30.23 $31.30 $32.25 482 4 $31.82 $32.94 $33.94 482 5 $33.49 $34.67 $35.72 35 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 484 non-exempt Water Meter Repair 1 $30.22 $31.29 $32.24 484 2 $31.81 $32.93 $33.93 484 3 $33.48 $34.66 $35.71 484 4 $35.24 $36.48 $37.58 484 5 $37.09 $38.39 $39.55 499 non-exempt Water Sys Oper I 1 $31.85 $32.96 $33.96 499 2 $33.52 $34.69 $35.74 499 3 $35.28 $36.51 $37.62 499 4 $37.13 $38.43 $39.59 499 5 $39.08 $40.45 $41.67 507 non-exempt Water Sys Oper II 1 $36.37 $37.65 $38.78 507 2 $38.28 $39.63 $40.82 507 3 $40.29 $41.71 $42.96 507 4 $42.41 $43.90 $45.22 507 5 $44.64 $46.21 $47.60 500 non-exempt WQC Plt Oper I 1 $33.41 $34.58 $35.63 500 2 $35.16 $36.40 $37.50 500 3 $37.01 $38.31 $39.47 500 4 $38.95 $40.32 $41.54 500 5 $41.00 $42.44 $43.72 509 non-exempt WQC Plt Oper II 1 $38.17 $39.51 $40.69 509 2 $40.17 $41.58 $42.83 509 3 $42.28 $43.76 $45.08 509 4 $44.50 $46.06 $47.45 509 5 $46.84 $48.48 $49.94 510 non-exempt WQC Plt Oper Trn 1 $29.43 $30.46 $31.38 510 2 $30.97 $32.06 $33.03 510 3 $32.59 $33.74 $34.76 510 4 $34.30 $35.51 $36.58 510 5 $36.10 $37.37 $38.50 36 City of Palo Alto SEIU Salary Schedule FY 19-21 Job Code FLSA Job Title Steps Base Wage Increase and Market PP following adoption Base Wage Increase PP inclusive of December 1, 2019 Base Wage Increase PP inclusive of December 1, 2020 226 non-exempt Wtr Mtr Crs Cn Tec 1 $31.01 $32.11 $33.07 226 2 $32.64 $33.79 $34.81 226 3 $34.35 $35.56 $36.64 226 4 $36.15 $37.43 $38.56 226 5 $38.05 $39.39 $40.58 315 non-exempt Public Safety Dispatcher - Lead 1 $46.69 $48.33 $49.78 315 2 $49.14 $50.87 $52.39 315 3 $51.72 $53.54 $55.14 315 4 $54.44 $56.35 $58.04 315 5 $57.30 $59.31 $61.09 315 6 $58.74 $60.80 $62.62 315 7 $60.21 $62.32 $64.19 298 non-exempt Public Safety Dispatcher I 1 $39.52 $40.90 $42.13 298 2 $41.59 $43.05 $44.34 298 3 $43.77 $45.31 $46.67 298 4 $46.07 $47.69 $49.12 298 5 $48.49 $50.19 $51.70 298 6 $49.71 $51.45 $53.00 298 7 $50.96 $52.74 $54.33 316 non-exempt Public Safety Dispatcher II 1 $41.61 $43.07 $44.37 316 2 $43.80 $45.33 $46.70 316 3 $46.10 $47.71 $49.15 316 4 $48.52 $50.22 $51.73 316 5 $51.07 $52.86 $54.45 316 6 $52.35 $54.19 $55.82 316 7 $53.66 $55.55 $57.22 37 TO: FROM: DATE: CITY OF PALO ALTO HONORABLE CITY COUNCIL RUMI PORTILLO,HUMAN RESOURCES DIRECTOR APRIL 22,2019 SUBJECT:8-ADOPTION OF A MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF PALO ALTO AND SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU)LOCAL 521 In attachment B and Cthere is one track change which was accepted/added in error and needs to be removed. In the Job Family Attachment one job classification was found to be missing and is added in the revised version. Ru,i PortiIo Human Resources Director Ed Shikada City Manager 1 of 1 Job Family: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=52370.97&BlobID=70736 MOA Redlined: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=52370.97&BlobID=70734 MOA Clean: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=52370.97&BlobID=70735 CITY OF PALO ALTO Memorandum of Agreement City of Palo Alto and Service Employees International Union (SEIU) Local 521 December 1, 2015 – December 31, 2018January 1, 2019 – December 31, 2021 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 1 of 89 TABLE OF CONTENTS PREAMBLE ........................................................................................................... 1111116 ARTICLE I – RECOGNITION .............................................................................. 1111116 Section 1 - Recognition. ...................................................................................... 1111116 Section 2 - Protection of Unit. ............................................................................ 1212126 ARTICLE II - NO DISCRIMINATION................................................................. 1212126 Section 1 – Discrimination.................................................................................. 1212126 Section 2 - Right to Join the Union. .................................................................... 1212127 ARTICLE III – UNION MEMBERSHIP ............................................................... 1212127 Section 1 - Notice................................................................................................ 1313137 Section 2 – Payroll Deductions ........................................................................... 1313137 Section 3. Certification of Union Membership. .................................................. 1313137 Section 4. Indemnification, Defense and Hold Harmless ................................... 1414148 Section 5 - Documentation.................................................................................. 1414148 Section 5 - Bulletin Boards and Departmental Mail. .......................................... 1515158 Section 6 - Access to Union Representatives. .................................................... 1515159 Section 7 - Meeting Places. ................................................................................. 1616169 Section 8 - Notification to the Union. ................................................................. 1616169 Section 9 - Union Logo ....................................................................................... 1616169 Section 10 - Public Notice. ............................................................................... 17171710 Section 11 - Use of Agency Reports. ................................................................ 17171710 Section 12 - Job Postings .................................................................................. 17171710 Section 13 - Contracting Out ............................................................................ 17171710 ARTICLE IV - STEWARDS................................................................................ 17171710 Section 1 - Union Officers. ............................................................................... 17171710 Section 2 - Number of Stewards. ...................................................................... 18181811 Section 3 - Release Time. ................................................................................. 18181811 Section 4 - Advance Notification Before Leaving Work Location. ................. 18181811 Section 5 – Release Time .................................................................................. 18181811 Section 6 - Designated Union Space. ................................................................ 19191912 Section 7 - Union Officers and Release Time. ................................................. 19191912 ARTICLE V - REDUCTION IN FORCE ............................................................ 19191912 Section 1 - Attrition. ......................................................................................... 19191912 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 2 of 89 Section 2 - Advance Notice. ............................................................................. 19191912 Section 3 - Order of Layoff. .............................................................................. 19191912 Section 4 - Seniority/Bumping Rights. ............................................................. 19191912 Section 5 - Re-Employment List....................................................................... 20202013 Section 6 - Sick Leave Balances. ...................................................................... 20202013 Section 7 - Hourly Employees Performing Duties. .......................................... 20202013 ARTICLE VI - PERSONNEL ACTIONS ............................................................ 21212114 Section 1 - Probation. ........................................................................................ 21212114 Section 2 - Personnel Evaluations..................................................................... 21212114 Section 3 - Personnel Files. ............................................................................... 21212114 Section 4 - Release of Information. .................................................................. 22222215 Section 5 - Promotional Opportunities. ............................................................ 22222215 g) Violations............................................................................................ 23232316 Section 6 - Rights. ............................................................................................. 24242417 Section 7 - Apprentice Positions. ...................................................................... 24242417 Section 8 - Rotation. ......................................................................................... 24242417 ARTICLE VII - PAY RATES AND PRACTICES .............................................. 24242417 Section 1 - Salary. ............................................................................................. 24242417 Section 2 - Step Increases. ................................................................................ 24242417 Section 3 - Working Out of Classification ........................................................ 24242417 Section 4 - Classification Changes. .................................................................. 25252518 Section 5 - Reclassification Requests. .............................................................. 25252518 Section 6 - Assignment to a Lead Position. ...................................................... 26262619 Section 7 - Total Compensation and Survey Database. .................................... 27272720 Section 8 - Direct Deposit ................................................................................. 27272720 ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY ............. 28282821 Section 1 - Work Week and Work Day. ........................................................... 28282821 Section 2 - Overtime Work. .............................................................................. 28282821 Section 3 - Work Shifts. .................................................................................... 30303023 Section 4 - City-Paid Meals. ............................................................................. 30303023 Section 5 - Break Periods .................................................................................. 33333325 ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES ............................... 34343427 Section 1 - Uniforms. ........................................................................................ 34343427 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 3 of 89 Section 2 - Tool Allowance. ............................................................................. 38383830 Section 3 - Shoe Allowance. ............................................................................. 38383830 Section 4 – Certifications. ................................................................................. 38383831 Section 5 - Weather Protection. ........................................................................ 43434335 ARTICLE X - HOLIDAYS .................................................................................. 43434335 Section 1 - Fixed Holidays. ............................................................................... 43434335 Section 2 - Pay for Fixed Holidays. .................................................................. 43434436 Section 3 - Work on Fixed Holidays................................................................. 44444436 Section 4 - Variations in Work Week. .............................................................. 44444436 Section 5 - Floating Days Off ........................................................................... 44444437 ARTICLE XI - VACATIONS .............................................................................. 45454537 Section 1 - Vacation Accruals. .......................................................................... 45454537 Section 2 - Holiday Falling During Vacation. .................................................. 45454538 Section 3 - Illness During Vacation. ................................................................. 46464638 Section 4 - Accrued Vacation Pay for Deceased Employees. .......................... 46464638 Section 5 - Effect of Extended Military Leave. ................................................ 46464638 Section 6 - Vacation at Termination. ................................................................ 46464638 Section 7 - Vacation Cash Out. ......................................................................... 46464638 ARTICLE XII - LEAVE PROVISIONS .............................................................. 47474739 Section 1 - Sick Leave. ..................................................................................... 47474739 Section 2 - Bereavement Leave. ....................................................................... 48484840 Section 3 - Military Leave. ............................................................................... 49494941 Section 4 - Leave Without Pay. ........................................................................ 49494941 Section 5 - Jury Duty and Subpoenas ............................................................... 49494941 Section 6 - Time Off to Vote. ........................................................................... 50505042 Section 7 - Disapproval of Leave of Absence. ................................................. 50505042 Section 8 - Personal Business Leave Chargeable to Sick Leave. ..................... 50505042 Section 9 - Return to Assignment. .................................................................... 50505042 ARTICLE XIII - WORKERS' COMPENSATION INSURANCE ...................... 50505042 Section 1 - Industrial Temporary Disability. .................................................... 50505042 Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. ........................................................................................................................... 51515143 ARTICLE XIV - BENEFIT PROGRAMS ........................................................... 51515143 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 4 of 89 Section 1 - Health Plan. .................................................................................... 51515143 Section 2 - Dental Plan. .................................................................................... 54545546 Section 3 - Vision Care ..................................................................................... 55555547 Section 4 - Life Insurance ................................................................................. 55555547 Section 5 – Long Term Disability Insurance .................................................... 55555547 Section 6 - Effective Date of Coverage for New Employees ........................... 56565647 Section 7 - Dual Coverage ................................................................................ 56565647 Section 8 - Deferred Compensation .................................................................. 56565648 Section 9 – Dependent Care Assistance Program and Medical Flexible Spending Accounts. .......................................................................................................... 56565648 Section 10 - Training Programs. ........................................................................ 56565648 ARTICLE XV – RETIREMENT.......................................................................... 57575748 Section 1 - PERS Continuation. ........................................................................ 57575748 Section 2 - Employee Share. ............................................................................. 58585849 Section 3. Employer Share. ............................................................................... 58585850 ARTICLE XVI - COMMUTE INCENTIVES AND PARKING ......................... 59595950 Section 1 - Commute Incentive. ........................................................................ 59595950 Section 2 – Parking Lot Security – Municipal Service Center. ........................ 60606051 Section 3 – Bicycle Lockers and Motorcycle Parking. ..................................... 60606051 ARTICLE XVII - PHYSICAL EXAMINATIONS .............................................. 60606051 ARTICLE XVIII – SAFETY ................................................................................ 60606052 Section 1 - Health and Safety Provisions .......................................................... 60606052 Section 2 - Union Cooperation. ........................................................................ 61616152 Section 3 - Safety Committees and Disputes. ................................................... 61616152 ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE ........................... 62626253 Section 1 - General Provisions. ......................................................................... 62626253 Section 2 – Definitions...................................................................................... 62626253 Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure. ......................................................................................................... 62626253 Section 4 - Grievance and Appeal Procedure. .................................................. 64646455 ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION ............................................................................................................... 66666657 Section 1 - Preliminary Notice of Discipline. ................................................... 66666657 Section 2 - Skelly Meeting. ............................................................................... 67676758 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 5 of 89 Section 3 – Appeals. ......................................................................................... 67676758 ARTICLE XXI - NO ABROGATION OF RIGHTS ........................................... 67676858 ARTICLE XXII - OUTSIDE EMPLOYMENT ................................................... 68686859 ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS ............................. 68686859 ARTICLE XXIV - PROVISIONS OF THE LAW ............................................... 68686859 Section 1 - Conformity and Separability of Provisions. ................................... 68686859 Section 2 - Merit Rules and Regulations. ......................................................... 68686859 Section 3 - Resolution. ...................................................................................... 68686859 ARTICLE XXV - TUITION REIMBURSEMENT ............................................. 69696959 ARTICLE XXVI - COST REDUCTION PROGRAMS ...................................... 70707060 ARTICLE XXVII – TERM .................................................................................. 70707061 APPENDIX A ....................................................................................................... 74747464 APPENDIX B. APPRENTICESHIPS .................................................................. 76767666 APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION ........................................................................................................ 80808069 APPENDIX D. IN-LIEU PREMIUMS ................................................................ 85858574 APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS .................. 86868675 APPENDIX F. RECOVERY OF CITY TRAINING COSTS .............................. 87878776 APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT 88888877 PREAMBLE ........................................................................................................................... 6 ARTICLE I – RECOGNITION .................................................................................................. 7 Section 1 - Recognition. .................................................................................................. 7 Section 2 - Protection of Unit. ........................................................................................ 7 Section 1 – Discrimination. ............................................................................................. 7 Section 2 - Right to Join the Union. ................................................................................ 8 ARTICLE III - UNION SECURITY ............................................................................................ 8 Section 1 - Notice. ........................................................................................................... 8 Section 2 - Agency Shop. ................................................................................................. 8 Section 3 - Documentation. .......................................................................................... 10 Section 4 - Payroll Deduction. ....................................................................................... 10 Section 5 - Bulletin Boards and Departmental Mail. .................................................... 10 Section 6 - Access to Union Representatives. ............................................................... 11 Section 7 - Meeting Places. ........................................................................................... 11 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 6 of 89 Section 8 - Notification to the Union. ........................................................................... 11 General. ..................................................................................................................... 11 Change in City’s Financial Situation. ......................................................................... 11 Vacancies and Temporary Personnel........................................................................ 11 Section 9 - Union Logo. ................................................................................................. 11 Section 10 - Public Notice ............................................................................................. 11 Section 11 - Use of Agency Reports. ............................................................................. 12 Section 12 - Job Postings. .............................................................................................. 12 Section 13 - Contracting Out. ........................................................................................ 12 ARTICLE IV - STEWARDS .................................................................................................... 12 Section 1 - Union Officers. ............................................................................................ 12 Section 2 - Number of Stewards. .................................................................................. 12 Section 3 - Release Time. .............................................................................................. 13 Section 4 - Advance Notification Before Leaving Work Location. ................................ 13 Section 5 – Release Time .............................................................................................. 13 Section 6 - Designated Union Space. ............................................................................ 13 Section 7 - Union Officers and Release Time. ............................................................... 14 ARTICLE V - REDUCTION IN FORCE ................................................................................... 14 Section 1 - Attrition. ...................................................................................................... 14 Section 2 - Advance Notice. .......................................................................................... 14 Section 3 - Order of Layoff. ........................................................................................... 14 Section 4 - Seniority/Bumping Rights. .......................................................................... 14 Section 5 - Re-Employment List. ................................................................................... 15 Section 6 -Sick Leave Balances. ..................................................................................... 15 Section 7 - Hourly Employees Performing Duties. ........................................................ 15 ARTICLE VI - PERSONNEL ACTIONS ................................................................................... 15 Section 1 - Probation. ................................................................................................... 15 Section 2 - Personnel Evaluations. ................................................................................ 16 Section 3 - Personnel Files. ........................................................................................... 16 Section 4 - Release of Information. .............................................................................. 17 Section 5 - Promotional Opportunities. ........................................................................ 17 Posting....................................................................................................................... 17 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 7 of 89 Internal Candidate Eligibility. .................................................................................... 17 Selection .................................................................................................................... 17 Recommended Candidates. ...................................................................................... 18 Seniority. ................................................................................................................... 18 Appointment. ............................................................................................................ 18 Violations. ................................................................................................................. 18 Section 6 - Rights. .......................................................................................................... 18 Section 7 - Apprentice Positions. .................................................................................. 18 Section 8 - Rotation. ...................................................................................................... 19 ARTICLE VII - PAY RATES AND PRACTICES ......................................................................... 19 Section 1 - Salary. .......................................................................................................... 19 Section 3 - Working Out of Classification. .................................................................... 19 Section 4 - Classification Changes. ................................................................................ 20 Section 5 - Reclassification Requests. ........................................................................... 20 Section 6 - Assignment to a Lead Position. ................................................................... 21 Section 7 - Total Compensation and Survey Database. ................................................ 21 Section 8 - Direct Deposit ............................................................................................. 22 ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY ........................................... 22 Section 1 - Work Week and Work Day.......................................................................... 23 Section 2 - Overtime Work. .......................................................................................... 23 Section 3 - Work Shifts. ................................................................................................. 24 Section 4 - City-Paid Meals. .......................................................................................... 24 Section 5 - Break Periods. ............................................................................................. 26 Section 6 - Clean-Up Time. ............................................................................................ 27 Section 7 - Standby Pay, Call-Out Pay. .......................................................................... 27 Standby Compensation. ............................................................................................ 27 Minimum Call-Out Pay. ............................................................................................. 27 Section 9 - Bilingual Premium. ...................................................................................... 27 Section 10 - Communications Training Officer (CTO) Compensation........................... 28 ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES........................................................... 28 Section 1 - Uniforms. .................................................................................................... 28 Section 2 - Tool Allowance. ........................................................................................... 31 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 8 of 89 Section 3 - Shoe Allowance. .......................................................................................... 31 Section 4 – Certifications. ............................................................................................. 32 Section 5 - Weather Protection. ................................................................................... 36 ARTICLE X - HOLIDAYS ....................................................................................................... 36 Section 1 - Fixed Holidays. ............................................................................................ 36 Section 2 - Pay for Fixed Holidays. ................................................................................ 37 Section 3 - Work on Fixed Holidays. ............................................................................. 37 Section 4 - Variations in Work Week. ........................................................................... 37 Section 5 - Floating Days Off ......................................................................................... 37 ARTICLE XI - VACATIONS ................................................................................................... 38 Section 1 - Vacation Accruals. ....................................................................................... 38 Section 2 - Holiday Falling During Vacation. ................................................................. 38 Section 3 - Illness During Vacation. ............................................................................... 39 Section 4 - Accrued Vacation Pay for Deceased Employees. ........................................ 39 Section 5 - Effect of Extended Military Leave. .............................................................. 39 Section 6 - Vacation at Termination. ............................................................................ 39 Section 7 - Vacation Cash Out. ...................................................................................... 39 ARTICLE XII - LEAVE PROVISIONS ...................................................................................... 40 Section 1 - Sick Leave. ................................................................................................... 40 Section 2 - Bereavement Leave. ................................................................................... 41 Section 3 - Military Leave. ............................................................................................. 41 Section 4 - Leave Without Pay. ..................................................................................... 42 Section 5 - Jury Duty and Subpoenas ............................................................................ 42 Section 6 - Time Off to Vote. ......................................................................................... 43 Section 7 - Disapproval of Leave of Absence. ............................................................... 43 Section 8 - Personal Business Leave Chargeable to Sick Leave. ................................... 43 Section 9 - Return to Assignment. ................................................................................ 43 ARTICLE XIII - WORKERS' COMPENSATION INSURANCE ................................................... 43 Section 1 - Industrial Temporary Disability. .................................................................. 43 Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. 44 ARTICLE XIV - BENEFIT PROGRAMS................................................................................... 44 Section 1 - Health Plan. ................................................................................................. 44 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 9 of 89 Active Employees ...................................................................................................... 44 Health Plan Coverage for Future Retirees Hired Before January 1, 2005. ............... 45 PERS – Health Benefit Vesting For Future Retirees Effective January 1, 2005 or any existing employee who opts into this vesting schedule. .......................................... 45 Coverage for Domestic Partners. .............................................................................. 46 Alternative Medical Benefit Program. ...................................................................... 46 Section 2 - Dental Plan. ................................................................................................. 47 Section 3 - Vision Care. ................................................................................................. 47 Section 4 - Life Insurance. ............................................................................................. 48 Section 5 – Long Term Disability Insurance. ................................................................. 48 Section 6 - Effective Date of Coverage for New Employees. ........................................ 48 Section 7 - Dual Coverage. ............................................................................................ 48 Section 8 - Deferred Compensation.............................................................................. 48 Section 10 - Training Programs. .................................................................................... 49 ARTICLE XV - RETIREMENT ................................................................................................ 49 Section 1 - PERS Continuation. ..................................................................................... 49 Pension Group A: 2.7% @ 55. ................................................................................... 49 Pension Group B: 2.0% @ 60 – (Single Highest Year). .............................................. 49 Pension Group C: 2.0% @ 60 – (3 Highest Years). .................................................... 49 Pension Group D: 2% @ 62. ...................................................................................... 50 Section 2 - Employee Share. ......................................................................................... 50 Section 3. Employer Share. ........................................................................................... 50 Section 4 - Utility Rates Discount. ................................................................................. 51 ARTICLE XVI - COMMUTE INCENTIVES AND PARKING ...................................................... 51 Section 1 - Commute Incentive. .................................................................................... 51 Civic Center Parking .................................................................................................. 51 Carpool. ..................................................................................................................... 51 Bicycle. ...................................................................................................................... 51 Walk... ....................................................................................................................... 51 Transit or vanpool users: .......................................................................................... 51 Go Pass. ..................................................................................................................... 52 Section 2 – Parking Lot Security – Municipal Service Center. ...................................... 52 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 10 of 89 Section 3 – Bicycle Lockers and Motorcycle Parking. ................................................... 52 ARTICLE XVII - PHYSICAL EXAMINATIONS ......................................................................... 52 ARTICLE XVIII – SAFETY ..................................................................................................... 52 Section 1 - Health and Safety Provisions ...................................................................... 52 Section 2 - Union Cooperation. ..................................................................................... 53 Section 3 - Safety Committees and Disputes. ............................................................... 53 ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE ........................................................ 54 Section 1 - General Provisions. ..................................................................................... 54 Section 2 – Definitions. ................................................................................................. 54 Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure. ..................................................................................................................... 54 Section 4 - Grievance and Appeal Procedure. .............................................................. 56 Step I. ........................................................................................................................ 56 Step II. ....................................................................................................................... 56 Step III. ...................................................................................................................... 57 Step IV. ...................................................................................................................... 57 ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION ......... 58 Section 1 - Preliminary Notice of Discipline. ................................................................. 58 Section 2 - Skelly Meeting. ............................................................................................ 59 Section 3 – Appeals. ...................................................................................................... 59 ARTICLE XXI - NO ABROGATION OF RIGHTS ..................................................................... 59 ARTICLE XXII - OUTSIDE EMPLOYMENT ............................................................................ 59 ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS .......................................................... 60 ARTICLE XXIV - PROVISIONS OF THE LAW ......................................................................... 60 Section 1 - Conformity and Separability of Provisions. ................................................ 60 Section 2 - Merit Rules and Regulations. ...................................................................... 60 Section 3 - Resolution. .................................................................................................. 60 ARTICLE XXV - TUITION REIMBURSEMENT ....................................................................... 60 ARTICLE XXVI - COST REDUCTION PROGRAMS ................................................................. 61 ARTICLE XXVII – TERM ....................................................................................................... 61 APPENDIX A ....................................................................................................................... 63 APPENDIX B. APPRENTICESHIPS ........................................................................................ 64 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 11 of 89 APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION . 68 APPENDIX D. IN-LIEU PREMIUMS ..................................................................................... 73 APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS ............................................. 74 APPENDIX F. RECOVERY OF CITY TRAINING COSTS .......................................................... 75 APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT ................................ 76 2015-2018 MEMORANDUM OF AGREEMENT City of Palo Alto and SEIU Local 521 PREAMBLE This Memorandum of Agreement (hereinafter “MOA” is entered into by the City of Palo Alto (hereinafter referred to as the “City”) and Local 521 Service Employees’ International Union, CTW (hereinafter referred to as the “Union”). For the purposes of this MOA “employee” shall mean an employee assigned to a classification within the SEIU General Employee bargaining unit. This MOA is pursuant and subject to Sections 3500-3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit Rules and Regulations. ARTICLE I – RECOGNITION Section 1 - Recognition. Pursuant to Sections 3500 - 3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations, the City recognizes the Union as the exclusive representative of a City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 12 of 89 representation unit consisting of all regular full and part-time employees in the classifications listed in Appendix A attached hereto. This unit, shall for purposes of identification, be titled the SEIU General Employees bargaining unit (hereinafter “General Unit”). Section 2 - Protection of Unit. No supervisor will perform the work of an employee in the General Unit provided that there is an employee available who regularly performs such work. This does not preclude a supervisor from performing work of a minor nature or during bona fide emergencies or on a standby status when willing and qualified unit employees do not live within a reasonable response time of their work location. Supervisory personnel shall be called out to perform unscheduled work only when SEIU General unit employees are unavailable to perform such work or in cases of bona fide emergencies as defined in Article VIII, Section 2. In cases of bona fide emergencies, SEIU General Unit employees shall be called out to complete the necessary work after the immediate emergency situation has been reasonably contained. ARTICLE II - NO DISCRIMINATION Section 1 – Discrimination. The City of Palo Alto is committed to providing a work environment free from all forms of harassment and discrimination and agrees not to harass or discriminate against employees or applicants based on such characteristics such as race, ethnicity, color, religion, political affiliation, veteran status, military status, national origin, ancestry, disability, medical condition, marital status, age, pregnancy, sex, sexual orientation, gender identity and gender expression, or the perception that any person has such characteristic, and any other characteristic protected by federal or state law or City Ordinance. The City of Palo Alto will not harass or discriminate against employees from exercising their rights to organize in accordance with the Meyers-Milias Brown Act. Complaints of harassment and discrimination should be reported immediately to the Department of Human Resources and will be investigated in accordance with the City’s Policy and Procedures. Section 2 - Right to Join the Union. The City and the Union agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. ARTICLE III – UNION SECURITY MEMBERSHIP City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 13 of 89 Section 1 - Notice. When a person is hired in any of the covered job classifications, the City shall notify that person that the Union is the recognized bargaining representative for the employee and give the employee a current copy of the Memorandum of Agreement. When a group employee orientation is held for new employees of the bargaining unit, a union representative may make a presentation to such bargaining unit employees for the purpose of explaining matters of representation. The presentation shall not exceed 15 30 minutes. Section 2 -– Payroll DeductionsAgency Shop. The City shall deduct Union membership dues and pay other mutually agreed upon deductions (including Committee on Political Education (COPE)) from the bi-weekly pay of member employees. The deductions in this Section shall not apply during any period where an employee is in an unpaid status and/or transfers or in any other manner leaves the representation unit. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain all authorizations for dues deductions signed by the individual from whose salary or wages the deduction or reduction is to be made. The City will direct employee requests to cancel or change deductions to the Union. Deductions may be revoked only pursuant to the terms of the employee’s written authorization. The City shall remit the deducted dues to the Union as soon as possible after deduction. Section 3. Certification of Union Membership. The Union agrees to provide the City on a monthly basis, a certified list of members and a statement that the Union has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made, and a statement that the Union shall indemnify the City for any claims made by the employee for deductions made in reliance on that certification, in accordance with Government Code Section 1157.12(a). a) Every employee in the bargaining unit covered by this Memorandum of Agreement shall: 1) remain a member in good standing of the Union; or 2) pay to the Union a monthly service fee, to be set by the union in accordance with applicable law, in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization; or, 3) in the case of an employee who certifies that he/she is a member of a recognized religion, body or sect which has historically held conscientious objection to joining or financially supporting public employee organizations, pay a charity fee, equal to the service fee, to a non-religious, non-labor charitable fund exempt from taxation under Section 501 (c)(3) of the Internal Revenue Code, chosen from one of the following three charitable City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 14 of 89 organizations agreed to by the City and the Union (or any successor organization(s) agreed to by the City and the Union): United Way of California Community Health Charities Environmental Federation of California Union members may declare their intention to terminate Union membership by registered letter, return receipt requested, to the Director of Human Resources and the Union only during the 30-day period between 60 and 90 days before expiration of the MOA. b) Employees who are newly hired into or who join the bargaining unit shall elect one of the above payment deduction options by completing and submitting the Employee Election form within thirty (30) calendar days of being hired into a classification covered by this MOA. c) To qualify for deduction of the Charity Fee, the employee must certify to the Union and City that he/she is a member of a bona fide religious body or sect that has historically held conscientious objection to joining or financially supporting public employee organizations. The employee is required to submit to the City and the Union a notarized letter signed by an official of the bona fide religion, body, or sect certifying that person’s membership. Upon request, the City shall provide to the Union a report of payments made by employees that qualify for the Charity Fee option in this subsection. d)a) The deductions in this Section shall not apply during any period where an employee is in an unpaid status. Involuntary Service Fee Deduction Process: The City shall deduct a service fee from the salary of each bargaining unit member who has not authorized a dues deduction, service fee deduction or charity fee in writing within the time stated in this Section, above. The Union certifies that it has consulted with knowledgeable legal counsel and has thereby determined that this involuntary service fee deduction process satisfies all constitutional and statutory requirements.Agency shop may be rescinded only in accordance with the provision of state law. Section 4. Indemnification, Defense and Hold Harmless: Union agrees to indemnify and hold harmless the City and all officials, employees, and agents acting on its behalf, from any and all claims, actions, damages, costs, or expenses including all attorney’s fees and costs of defense in actions against the City, its officials, employees or agents as a result of actions taken or not taken by the City pursuant to this Articlee Agency Shop Arrangement. Sign-up forms for deduction of union dues, service fees and charity fees shall be provided by the Union and approved by the City. Section 35 - Documentation. The City shall supply the Union with: City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 15 of 89 a) a monthly electronic file on or before the 15th of the month withof the names, member/fee payer designation, addresses, classifications, hourlymonthly base pay, pay period number, work locations, work phone, home phone number, personal cellphone number, employee number, and personal email, Committee on Political Education (COPE) listed separately and last four digits of the Social Security number of all bargaining unit employees on file with the City except those who file written notice with the Human Resources Department objecting to release of addresses, home telephone number, personal cellphone number, or personal email address, in which case information will be transmitted without addressthese objected items; and b) a list of bargaining unit new hires, terminations and retirements which occurred during the previous month. The Union shall supply the City, and as applicable, the employees, with documentation required by Government Code Section 3502.5 (f). Section 4 - Payroll Deduction. The City shall deduct Union membership dues, service fees, charity fees, and any other mutually agreed upon payroll deduction, which may include voluntary COPE check-off, from the bi-weekly pay of bargaining unit employees. The dues/fees deduction must be authorized in writing by the employee on an authorization form acceptable to the City and the Union, except as provided in Section 2(e), above. The dues deduction form shall include a check box for those employees who wish the Union to receive notification in the event of unsatisfactory work, conduct, or disciplinary action taken pursuant to Article XX. City shall remit the deducted dues or fees to the Union as soon as possible after deduction. Section 5 - Bulletin Boards and Departmental Mail. The Union shall have access to inter-office mail, existing bulletin boards in unit employee work areas, and existing Union-paid telephone answering device for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission. The Union may send email messages only for the purposes set forth above. The IT Department will maintain the SEIU list and keep it current. The Union access to email is based on the following conditions: 1) emails to the SEIU list will be copied to the Human Resource Director, or designee at distribution; 2) emails to the SEIU list will only be sent by the SEIU Chapter Chair, Vice Chair, Chief Steward (s) or Secretary, 3) a maximum of 52 emails may be sent per year and a maximum of 12 emails may be sent by the SEIU Chapter Secretary. Section 6 - Access to Union Representatives. Representatives of the Union are authorized access to City work locations for the purpose of conducting business within City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 16 of 89 the scope of representation, provided that no disruption of work is involved and the business transacted is other than recruiting of members or collecting of dues, and the representative must notify the Human Resources Department Office prior to entering the work location. Section 7 - Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during lunch periods or other non-working hours. Such meeting places will be made available in conformity with City's regulations and subject to the limitations of prior commitment. Section 8 - Notification to the Union. a) General. Pursuant to Government Section 3500, et seq. (Meyers-Milias-Brown Act as amended), Tthe Union shall be informed in advance in writing by Management before any proposed changes not covered by this Memorandum of Agreement are made in benefits, working conditions, or other terms and conditions of employment which require meet and confer or meet and consult process. This paragraph shall not be subject to the grievance procedure of this Memorandum of Agreement so long as the Public Employeement Relations Board retains jurisdiction over the obligation to meet and confer in good faith. b) Change in City’s Financial Situation. Should the City’s financial situation deteriorate and the possibility of layoffs result, the City Manager will give prior notice to and consult with the Union prior to recommending any layoffs to the City Council. c) Vacancies and Temporary Personnel. The City agrees to notify SEIU Local 521 in writing when any irregular, temporary, hourly, provisional, special or extra help employee who consistently performs work typical of the SEIU Local 521 bargaining unit exceeds 1,000 hours of work within a 18-month period. The City agrees to notify SEIU Local 521 in writing when any position covered by this agreement is left vacant for more than 60 days. In coordination with the SEIU 521 Hourly representation Unit, the City and SEIU 521 may meet regarding the conversion of any long term and on-going hourly positions which may be converted to full time positions through the budget process. Through a separate meet and confer process, the City and Union will develop a way to convert long term, ongoing temporary-hourly positions to regular status. The City and Union will meet and confer regarding wages, benefits and terms and conditions of work. Section 9 - Union Logo. All materials and documents produced on Itek and metal plates, by the City print and reproduction shop, shall carry the Union label on the inside of covers or title pages in accordance with customary printing trades practices. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 17 of 89 Section 10 - Public Notice. The City shall make available to the Union, in a timely manner, copies of all City Council meeting agendas, minutes and schedule of meetings. These materials will be available online via the City’s website. Section 11 - Use of Agency Reports. Upon request, the City shall provide to the Union reports by department on the use of agency temporaries filling representation unit vacant positions, or doing work similar to that of representation unit classifications. Section 12 - Job Postings. The City shall incorporate the requirements of this Article when publicizing job announcements for classifications covered by this Memorandum of Agreement. Section 13 - Contracting Out. The City through the labor management process will keep the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SEIU bargaining unit work traditionally performed by bargaining unit members at least thirty (30) days prior to the release of the City Manager’s proposed budget. The City will notify the Union in writing at least ninety (90) days prior to contracting work which has been traditionally performed by bargaining unit members, . where such contracting will result in layoff or permanent reduction in hours. Within the ninety (90) day period of contracting out, both parties may offer alternatives to contracting out and meet and confer on the impact of such contracting out of a bargaining unit employee work. The City will notify the Union in writing when contracting out work which has been traditionally performed by bargaining unit workers, where such contracting out is expected to replace a laid off bargaining unit position that has been eliminated within ninety (90) days prior to the date of the planned contract work. When feasible, the City will provide such notice prior to the beginning date of the planned contract work. The City will meet with the Union upon request to discuss alternatives. This provision does not apply to the filling of temporary vacancies of twelve (12) months or less duration. The City will provide the Union with a biannual list by department of all contract workers or vendors who are contracted by the City who perform work for the City. The City will make a reasonable effort to identify the names of the vendors on the list and the nature of the work provided by each vendor. ARTICLE IV - STEWARDS Section 1 - Union Officers. The Union agrees to notify the Director of Human Resources of those individuals designated as Union officers and stewards who receive and investigate grievances and represent employees before Management. Alternates may be designated to perform steward functions during the absences or unavailability of the steward. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 18 of 89 Section 2 - Number of Stewards. The number of stewards designated by the Union at a given time shall not exceed thirty-five (35). Section 3 - Release Time. It is agreed that, as long as there is prior notice as specified below to the Supervisor and the release of stewards will not unreasonably disrupt City operations, stewards shall be allowed reasonable release time away from their work duties, without loss of pay, to represent a unit employee or employees on grievances or matters within the scope of representation, including: a) A meeting of the steward and an employee, or employees of that unit related to a grievance. b) A meeting with Management. c) Investigation and preparation of grievances. Grievances may be transmitted on City time. All steward release time shall be reported on time cards. Section 4 - Advance Notification Before Leaving Work Location. The Union agrees that the steward shall give no less than one (1) full business day advance notification to his/her supervisor before leaving the work location, except in those cases involving an unforeseeable circumstance that requires immediate union representation where advance notice cannot be given or when the relevant supervisor otherwise allows less notice. A supervisor may deny such a request for release from duty if the steward is needed to ensure real time delivery of services that the steward provides for the public or internal City customers and another employee who normally provides such services is not available on a straight time basis to relieve the steward, or in a bona fide emergency. If such denial occurs, the union may request the release of another of its designated stewards to perform the representation duties involved. Such request shall be processed in accordance with the terms set forth in this section except that the requirement for a full business day advance notice to the replacement representative’s supervisor shall not apply. Nothing herein shall preclude the City from rescheduling a meeting it has scheduled, to facilitate the attendance of a steward who has requested release if, in the City’s judgment, such change can be undertaken without undermining the objectives of the meeting. Section 5 – Release Time. Three Four Union officers, who are City employees, shall be allowed a reasonable amount of release time off for purposes of meeting and conferring or meeting and consulting on matters within the scope of representation. All such time will be reported on timecards. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 19 of 89 Section 6 - Designated Union Space. Union stewards may utilize space in assigned desks for storage of Union materials. In the event stewards are not assigned desks the City will provide locker or other mutually agreeable space for storage of Union materials. Section 7 - Union Officers and Release Time. Six Four union officers, who are City employees shall be allowed a reasonable amount of release time off for monthly Labor/Management Meetings. ARTICLE V - REDUCTION IN FORCE Section 1 - Attrition. In the event of reductions in force, they shall be accomplished wherever possible through attrition. Section 2 - Advance Notice. When the City determines that layoffs are imminent resulting from reduction in force within the representation unit, the City will give the Union such advance notice as is reasonable under the circumstances. The notice will indicate the departments and divisions which will be affected and the circumstances requiring the layoffs. The City will furnish the Union with a current representation unit seniority list with notice of layoff. Section 3 - Order of Layoff. If the work force is reduced within a department, division, or office for reasons of change in duties or organization, abolition of position, shortage of work or funds, or completion of work, employees with the shortest length of service will be laid off first so long as employees retained are fully qualified, trained, and capable of performing remaining work. Length of service for the purpose of this article will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Length of service ties will be determined by lot in a method agreeable to both parties. Employees laid off due to the above reasons will be given written notice at least thirty days prior to the reduction in force. A copy of such notice will be given to the Union. Such employees shall be offered priority employment rights to regular positions which are requisitioned and for which the employees are qualified for a period beginning with notification and ending sixty (60) days following the reduction in force. Employees transferred or reclassified under this section will be assigned to the step in the new classification salary range closest to the employee's salary range at the time of reclassification. Employees laid off pursuant to this section shall receive the balance of all regular City compensation owed and severance pay equal to one month’s salary at the employee’s final rate of pay at termination. This does not include any amounts payable under Article V, Section 6, or PERS contribution refunds, if any. Section 4 - Seniority/Bumping Rights. Employees identified for layoff who have seniority (bumping) rights to their current or previously held classifications within the City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 20 of 89 representation unit must declare their intention to exercise these rights in writing and submit to the Human Resources Department within seven (7) working days after written notification of layoff, otherwise bumping rights will automatically terminate. Bumping may occur within the representation unit, only to the least senior incumbent of the current or a previously held classification. To bump, the employee must be fully qualified, trained, and perform all work in the position. For purposes of this section of the Agreement, the term "working days" shall mean Mondays through Fridays, exclusive of holidays. When an employee returns to work from a military protected leave, they will be reinstated as required by law. Should this result in bumping a current employee; the displaced employee will have bumping rights as set forth in this section. Section 5 - Re-Employment List. The names of employees laid off or who through bumping changed classification in accordance with the provisions of this Article shall be entered upon a re-employment list in seniority order. The employee with the greatest seniority on the re-employment list, including those who exercised their bumping rights, shall be offered reinstatement first. Such notice of reinstatement shall be in writing with a copy to the employee, Union and Chapter Chair. If a laid off employee waives reinstatement or fails to respond within ten (10) working days of receipt of the notice, the employee shall be removed from the reemployment list. The person with the highest seniority including those who exercised their bumping rights on a re- employment list for a particular classification when a vacancy exists in that classification shall be offered the appointment. Names shall be carried on a re-employment list for a period of two (2) years from the date of separation from City services or change of classification through bumping. Upon re-employment within the two-year period, the employee's hire date of record at the time of layoff will be reinstated. When qualifications are in question, the City and SEIU will meet and confer. Section 6 - Sick Leave Balances. Employees laid off pursuant to Section 2 who are reinstated to a regular position within sixty (60) days shall retain the sick leave balance they had at the time of layoff, unless they have received a sick leave payoff in accordance with Article XII. Section 7 - Hourly Employees Performing Duties. No representation unit employee will be laid off or remain on a re-employment list when hourly employees are performing substantially all the duties of the classification of the employee receiving a layoff notice or on a re-employment list. This provision shall not be applied to hourly positions which have been traditionally used for seasonal and part-time work. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 21 of 89 ARTICLE VI - PERSONNEL ACTIONS Section 1 - Probation. Each new regular or part-time employee, except employees in police dispatch positions, shall serve a probationary period of twelve (12) months, commencing with the first day of his/her employment. Each new regular or part-time employee in dispatch positions will serve an 18-month probationary period commencing with the first day of his/her employment. The probationary period shall be regarded as a part of the testing process and shall be utilized for closely observing the employee's work, for securing the effective adjustment of a new employee to his/her position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. At least one written performance appraisal will be given to each probationary employee on or before expiration of the probationary period. This appraisal will be given approximately at the end of the sixth month and another at the end of the twelfth month for employees in police dispatch positions. In the event of termination prior to successful completion of the probationary period, such terminated employee shall be given written notice of his/her termination with the reasons for the termination stated therein. The Human Resources Department shall, upon request, afford an interview in a timely fashion to the terminated employee for discussion of the reasons for termination. The employee may, upon request, be accompanied by a Union representative. The interview shall not be deemed a hearing nor shall it obligate the City to reconsider or alter the termination action. The parties agree that probationary employees shall have all rights under this Memorandum of Agreement, including full and complete access to the grievance procedure, save and except for instances of suspension, demotion or termination. Section 2 - Personnel Evaluations. Personnel evaluations will be given to employees annually as scheduled by Management. Personnel evaluations are not appealable through the grievance procedure but, in the event of disagreement over content, the employee may request a review of the evaluation with the next higher level of Management, in consultation with the Human Resources Department. For purposes of this review, the employee may be represented by the Union. Decisions regarding evaluation appeal shall be made in writing within ten (10) working days following the review meeting. Section 3 - Personnel Files. Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Union representatives. An employee or the Union shall be allowed, upon reasonable request, copies of materials in an employee's personnel file relating to a grievance. Records of disciplinary actions, including references in a performance evaluation, shall be removed from a personnel file upon written request by the employee after a period of three four years, or sooner City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 22 of 89 as mutually agreed by Management and the employee so long as there have been no duplicated policy violations since the discipline (based on the Notice of Disciplinary Action) and the disciplinary action did not involve a violation of the City’s anti- harassment policy, or state and federal harassment and discrimination laws. Section 4 - Release of Information. The City will only release information to creditors or other persons upon prior identification of the inquirer and acceptable reasons for the inquiry. Information then given from personnel files is limited to verification of employment, length of employment and verification and disclosure of salary range information. Release of more specific information may be authorized by the employee. Section 5 - Promotional Opportunities. a) Posting. Promotional opportunities for classifications within the representation unit will be posted for at least ten (10) working days (Monday through Friday) prior to selection. Outside recruitment may be used for promotional openings and may begin at the time of posting, or any time thereafter. If, however, there are three or more qualified internal candidates within the department where the vacancy occurs, and those candidates successfully complete the selection process, outside candidates will not be considered. b) Internal Candidate Eligibility. All non-probationary representation unit employees are eligible to apply for posted promotional opportunities, except that Management may waive this requirement for all probationary employees within the department where the promotional opportunity occurs. c) Selection. The selection procedure for each promotional opening will be determined and administered by the Human Resources Department in consultation with the requisitioning department. Selection procedure and job description information will be available at the Human Resources Office at the time of posting. Efforts will be made to standardize tests and procedures where standardization is feasible and appropriate. Any tests used shall be reasonably predictive of success in the classification, and tests not be biased with respect to race, sex, sexual orientation, religion, creed, political affiliation, color, national origin, ancestry, or age. Selection procedures may include any or all of the following phases: 1) Application. Both inside and outside candidates must complete a City of Palo Alto application form specified by the Human Resources Department. Applications must be submitted to the Human Resources Office. 2) Screening. Applications will be screened by the Human Resources Department and, in some circumstances, a manager from the Department seeking to fill a City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 23 of 89 position to ascertain whether candidates meet minimum requirements as outlined in the job description. Internal candidates deemed not to meet minimum requirements may submit additional qualification information writing within three working days of notification of requirement deficiency. 3) Performance Testing. Performance tests, such as typing, machinery or vehicle operation, skills demonstration, physical agility, etc., will be qualifying. Pass-fail points will be announced in advance for qualifying tests. If requested in writing prior to the test, performance test may be witnessed by Union steward. 4) Written Tests. Written achievement or aptitude tests will be qualifying. Pass- fail points will be announced in advance for qualifying tests. 5) Interviews, Appraisals. Interviews may be conducted individually or by interview boards and will be qualifying. Interview boards shall be composed of qualified and unbiased people. Where interview boards are used, Management will include at least one bargaining unit employee on each board. If individual interview or an interview board is used, a majority of the individuals or board members must recommend a candidate in order for the candidate to qualify for appointment. Performance appraisals written by candidates' supervisors may be used as indicated in the selection procedure. d) Recommended Candidates. Candidates who successfully complete all phases of the selection procedure will be recommended to the appointing authority. e) Seniority. Seniority, for purposes of this Article, will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Seniority ties will be determined in favor of the employee with the lowest employee number last four digits. Exceptions to this subsection may be established by mutual agreement on a departmental or divisional basis. Such exceptions are listed in Appendix G. f) Appointment. The appointing authority will make appointments from among those recommended candidates who are most qualified as determined by objective review of selection procedure results and background materials. Where appointments are made from only internal candidates who are equally qualified as determined by objective review of selection procedure results and past performance, seniority will be the determining factor in promotional appointments. g) Violations. Any violation of this Article may be appealed to the Human Resources Director in Step III of the grievance procedure. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 24 of 89 Section 6 - Rights. Unit employees applying for a vacant equal or lower paying position shall have the same rights as unit employees applying for a promotion. Section 7 - Apprentice Positions. (a) The City shall establish apprentice positions wherever feasible. Length of apprenticeship, type of training, and pay levels shall be by mutual agreement. Where possible, apprentice positions will underfill regular positions so that incumbents may automatically progress to the classification for which they are training upon successful completion of apprenticeship. The City will meet and confer with the Union before adding any new apprenticeship programs during the term of this agreement. All apprenticeship programs are listed in Appendix B. Section 8 - Rotation. In assigning employees to regular or special shifts, transfer, standby, overtime, or vacation selection, ability to perform the work, length of service or equitable rotation shall determine the assignments. In accordance with this provision, more definitive rules may be arranged by mutual agreement of the Union and individual City departments. ARTICLE VII - PAY RATES AND PRACTICES Section 1 - Salary. The base salary rates and ranges for job classifications covered by this bargaining unit shall be increased as set forth in Appendix A-1 to reflect salary increases for all positions in the unit and market adjustments to positions identified in the total compensation survey as under-market based on the survey results for base, cash, insurance and the normal cost of retiree medical (when such information is required by and verified through the CAFR), with total rates and ranges as set forth in Appendix A-2 (Salary Schedule) attached hereto. Section 2 - Step Increases. Merit advancements from the first salary step to the second salary step shall be granted upon successful completion of probation and between second and subsequent steps at one-year intervals, if the affected employee has demonstrated continued improvement and efficient and effective service. For the purpose of determining step time requirements, time will commence on the first day of the month coinciding with or following entrance onto a salary step. Step increases shall be effective on the first day of the payroll period in which the time requirements have been met. Section 3 - Working Out of Classification. The term "working out of classification" is defined as a Management authorized full-time assignment to a budgeted/approved position on a temporary basis wherein all significant duties are performed by an individual holding a classification within a lower compensation range. Out-of- classification provisions do not apply to work assignments performed in connection with City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 25 of 89 specific predetermined apprenticeship or training programs, or declared conditions of public peril and/or disaster. Pay for working out of classification shall be as follows: a) Employees appointed to an "out of classification" will receive acting pay beginning the first day of the assignment and shall be paid for all hours worked in the higher classification provided employee works a minimum of four (4) hours. b) Where out-of-class appointments last for more than 90 days, and whenever feasible, an out-of-class appointment will be rotated among qualified interested employees in the work group. c) Employees will receive 5% premium pay for all assigned out of class pay for work within SEIU Classifications with the exception of lead assignments where the out of class pay will result in a 7% premium pay. d) Employee appointed to “out of class” assignments that are in the Management and Professional Compensation Plan or in Utilities Management and Professional Association for at least one workweek will receive up to a 10% premium pay. Section 4 - Classification Changes. a) During the course of this agreement, the Union and affected employees shall be notified in advance of any contemplated changes in classification description, wage range or steps. Such changes shall be subject to the meet and confer process. Such meet and confer process shall be concluded within no more than thirty (30) days following delivery of the City’s notice to the Union. If the Union and the City cannot reach agreement on the appropriate pay level from a job so reclassified, the Union may, within ten (10) City business days following the conclusion of the meet and confer process described above by delivery of written notice to the Human Resources Director, refer the dispute over the proposed wage range or steps to arbitration at Step IV of the Grievance Procedure set forth at Article XIX of this Memorandum of Agreement. Section 5 - Reclassification Requests. a) An employee or his/her representative may request in writing a re-evaluation of his/her job based on significant permanent changes in job content or significant discrepancies between job content and classification description. The request must be in writing, contain justification and may be made only on an annual basis during the period of September 10 through October 10. A statement by management that a job reevaluation request will be submitted with the departmental budget does not relieve an employee from the responsibility of City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 26 of 89 submitting his/her own request during this period. The Human Resources Director or his or her designee will initially respond to such requests within ninety (90) calendar days by notice to the employee and the union; however, this timeline may be extended if necessary. Such response shall include any reclassification to a different classification or changes in description that the City believes are warranted and any related changes in applicable pay range or steps. If meetings are held, the employee may request representation. If a reclassification is approved and results in an increase in salary, it shall be retroactive to the date the Employee or Union filed the request for the reclassification. b) If the employee or Union disagrees with the accuracy of the description of duties resulting from the study conducted pursuant to subsection (a) of this Section or with the wage range or steps assigned by the City as a result of the study, the employee or Union may, within ten (10) City business days of delivery of notice of such determination, appeal such decision under step IV of Article XIX, Grievance Procedure. c) In a dispute under Section 4(a) or section 5(b) above, the arbitrator shall render his or her decision on the appropriate wage range or steps within twenty-one (21) days after the initial hearing date. The same time line will be observed for disputes over the accuracy of the revised classification description. The parties will notify the arbitrator of this deadline at the time of the arbitrator’s selection. In reaching a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator shall base his or her award on the factors traditionally taken into account in the establishment of compensation. When deciding a dispute over the accuracy of the revised classification description under section 5(b) above, the arbitrator shall identify the modifications of the pre-existing classification necessary to accurately reflect the permanent changes, if any, that have been implemented. Upon receipt of the arbitrator’s award, the City shall implement the revised classification and wage range or steps as provided in the award except as provided under subsection 5(c) of this section below. Notwithstanding an arbitrator’s award pursuant to any appeal process, the City retains the right to forego implementing the changes and the proposed changes shall revert to the status quo as it existed before those changes in duties occurred or were proposed. d) An employee may submit a request for reclassification for the same classification no more than once every twenty-four (24) months. Section 6 - Assignment to a Lead Position. All vacancies in lead positions shall be filled in accordance with Article VI, Section 5. The pay range for the lead position shall be City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 27 of 89 seven percent above the pay step of the highest paid employee on the crew. Departmental exceptions for filling lead positions on a rotational basis for training and development purposes may be arranged by mutual agreement of the Union and individual City departments. Section 7 - Total Compensation and Survey Database. a) Management and the Union have agreed to a compensation survey database structure which identifies specific benchmark classifications for job families, classifications within the job families of each benchmark classification, survey agencies and survey classification matches. Survey Cities include: Alameda Hayward San Mateo Berkeley Mountain View Santa Clara Daly City Redwood City S. San Francisco Fremont San Jose Sunnyvale If the employer list will not permit the production of a survey report that includes data from at least four (4) employers that employ employees in a classification comparable to the classification surveyed by the City, neither party is precluded from bringing forward information on other employers in the relevant recruitment area that employ workers in a comparable classification so that data from at least five (5) surveyed employers will be included in the study, if feasible. Such employer may include any public or private employer. The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. The City will update the survey database and send the Union a copy six weeks before expiration of this agreement. This survey will be considered in connection with special adjustment proposals in successor agreement negotiations. By agreeing to a survey database, neither Union nor Management is under obligation to propose or agree to special adjustments. Section 8 - Direct Deposit Beginning in the first pay period following union ratification and adoption of this Agreement by the City Council, tThe City shall directly deposit all paychecks for Unit employees in a financial institution of the employee’s choice that accepts direct deposits and does not charge the City a fee(s) for direct deposit service. In the event that the employee fails to designate a financial institution for direct deposit of his or her payroll check, the employee shall pick up the check personally in the City’s Administrative City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 28 of 89 Services Department office on the next business day following payday at a pickup time designated by Administrative Services. ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY Section 1 - Work Week and Work Day. The standard workday for regular full time employees shall be one of the following: • Eeight hours to be worked within a maximum of nine hours (five-day work week); or • Tten hours to be worked within a maximum of eleven hours (four-day work week); or • nNine hours to be worked within a maximum of ten hours for four days with a fifth day of four hours (four and one-half day work week); or, • wWithin a fourteen-day period, nine hours to be worked within a maximum of ten hours for one eight days and eight hours to be worked within a maximum of ten nine hours for one day, with the work week scheduled to begin so that forty hours are worked within each seven days of the fourteen-day period (9/80 plan, with forty-hour work weeks), or any other schedule that results in a 40-hour work week, or fits within the parameters of an FLSA 2080 Plan. The "9/80 plan" may not be used in any application that requires entitlement to FLSA overtime for working the regular work week. With the exception of the 9/80 plan as described above and flexible scheduling for Police Dispatchers, the standard work week for regular full time employees shall be forty hours to be worked within five consecutive days. Additional exceptions to the above are listed in Appendix CD. The Union shall be notified of any further exceptions to this section in accordance with Article III, Section 8. The City and the Union agree that the availability of alternate/flexible work schedules is a valuable benefit in that they promote job satisfaction while also reducing traffic congestion and air pollution. Employees may utilize flexible arrangements to attend trainings, seminars, meetings, or for other mutually agreed upon situations. Any such change to work hours shall be approved by the supervisor in advance and should not result in overtime. During the term of this agreement, employees, subject to the conditions of their job assignment, may propose an alternate work schedule as listed under this Section. Such proposals must be made to the department head through the immediate supervisor. Serious consideration will be given to the feasibility and productivity of such proposals, however Management retains the right to determine scheduling needs. Section 2 - Overtime Work. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 29 of 89 a) Overtime work for all unit employees shall be defined as any time worked beyond the standard workday or beyond the standard work week. All time for which pay is received shall count as hours actually worked for the computation of regular overtime pay; however, non-productive time will not be included in computation of any additional FLSA premiums. b) Emergency overtime is defined as unplanned overtime work arising out of situations involving real loss of service or property or personal danger. Emergency overtime does not include: i. overtime work resulting from personnel replacement for purposes of maintaining scheduled staffing; ii. overtime work which is planned in advance; iii. overtime work resulting from being held over for up to four hours to finish work performed during the regular shift. c) Compensation to employees working overtime will be in the form of additional pay at the rate of one and one-half times the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one-half hours for each hour of overtime worked, subject to the limitations of applicable state and federal laws. Two times the employees’ applicable hourly salary regular rate will be paid for billable customer convenience overtime and emergency overtime as defined in subsection (ab) above) the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one-half hours for each hour of overtime worked, subject to the limitations of applicable state and federal laws. In the event compensatory time off is used as the method of compensating for Overtime, the time off will be taken prior to the end of the quarter following the quarter in which the overtime has been worked. In the event the employee is denied this provision, he/she will be compensated in pay for such time at the appropriate rate specified by these sections. Or at the employee's option, the earned compensatory time will be added to the employee's vacation balance. Employees may elect at any time to cash out compensatory time off hours or roll into vacation time, up to applicable maximums. These elections must be made via the Compensatory Time Cashout Form submitted to payroll and will take place the following pay period, if received by the form’s due date. Any City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 30 of 89 compensatory time off hours not taken, allocated, or cashed out will be automatically cashed out once a year during the first pay period in April. All time for which pay is received shall count as hours actually worked for the computation of regular overtime pay; however, non-productive time will not be included in computation of any additional FLSA premiums. d) When an employee is required to work 6 or more hours of overtime (either emergency or pre-arranged) during the 16 hour period immediately preceding the beginning of the employee’s regular shift on a workday, the employee shall be entitled to an eightnine (9)-hour rest period before returning to work. If the rest period overlaps into the second half of the work day, the employee may be given (with supervisor approval) the remaining time off (up to a maximum of 3 hours) at the straight time rate of pay. Any portion of the rest period falling within the employee’s work shift will be considered as hours worked and compensated at the straight time rate. e) If non-emergency overtime is canceled without at least 40 clock hours notice, the City shall pay the affected employees two (2) hours' pay at time and one- half. f) Employees working overtime who are too fatigued to continue or return to work, for safety reasons will be released from duty without compensation. g) Part-time Employees. Authorized hours worked by an employee in a budgeted, part-time position in excess of the scheduled hours of work of the position shall be compensated at the employee’s applicable hourly rate up to the maximum of non-overtime hours in the work period applicable to the employee. If a part- time employee works more than 80 hours in a pay period then overtime will be paid in accordance with the FLSA. Section 3 - Work Shifts. All employees shall be assigned to work shifts with scheduled starting and quitting times. Should conditions necessitate a change in starting and quitting times, the Union will be notified ten (10) working days in advance and permitted to discuss such changes with the City. This, however, shall not preclude the City's right to effect schedule changes dictated by operational necessity. This section does not apply to overtime scheduling. Section 4 - City-Paid Meals. In accordance with City policy, the City of Palo Alto bases its meal reimbursement limits on the U.S. General Services Administration (GSA) per diem rates. Those rates are City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 31 of 89 adjusted every October. For overnight travel per diem rates, the City reimburses based on the rates applicable to the destination of travel, as provided by the GSA at http://www.gsa.gov/portal/category/100120. For non-travel meals, the City will reimburse up the maximum GSA rates for the Palo Alto area. Receipts are required to back-up these expenses. a) Emergency overtime meals. For purposes of this section, emergency overtime is defined as unplanned overtime arising out of situations involving real loss of service or property or personal danger. The City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area (current non-travel meal maximum rates as of October 1, 2015 are $15 for breakfast, $16 for Lunch and $28 for dinner) and will provide meals in the following emergency overtime situations: 1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR, 2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR, 3) When an employee is called out two hours or more before a regularly scheduled day shift and works the regularly scheduled shift, he/she will be entitled to breakfast and lunch. Lunches will be consumed on employee's own time. No in-lieu pay will be made for meals not taken. This sub-section does not apply if already covered in Section 4(a)(1) above. 4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. b) Non-emergency overtime meals. The City will provide meals for personnel assigned to non-emergency overtime work where the assignment extends two hours after the regular or overtime shift end and at intervals of five hours thereafter. c) With regard to (a) and (b) above, the City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area (current non-travel meal maximum rates as of October 1, 2015 are $15 for breakfast, $16 for Lunch and $28 for dinner). Where possible, the City will arrange purchase orders at City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 32 of 89 mutually agreeable restaurants. The time necessarily taken to consume a meal provided under this section shall be considered as time worked to a maximum of one hour, except as noted in (a) (3). d) With regard to (a) and (b) above, in the event an employee is to be provided a meal or meals pursuant to this section and such meal(s) are not provided due to working conditions, the employee shall have the option of receiving for each meal not provided an additional one hour of overtime compensation in lieu of such meal. This hour will not be considered as time worked or part of the rest period, but will be applied to qualify for the rest period. e) Emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in an emergency overtime situation involving real or potential loss of service or personal danger. 1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. 2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. 3) When an employee is called out two hours or more before a regularly scheduled shift. The employee will be entitled to two meals, the second meal will be consumed on the employee's own time. No in-lieu pay will be made for meals not taken. 4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. f) Non-emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in non-emergency situations where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. If the City is unable to provide a meal, the City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area (current non-travel meal maximum rates as of October 1, 2015 are $15 for breakfast, $16 for Lunch and $28 for dinner). This policy only applies when an employee is held over, either voluntary or mandated, on duty beyond a scheduled regular or overtime shift. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 33 of 89 Section 5 - Break Periods. All employees shall be granted a break period or coffee break limited to 15 minutes during each four hours of work. Departments may make reasonable rules concerning break period scheduling. Break periods not taken shall be waived. Section 6 - Clean-Up Time. All employees whose work causes their person or clothing to become soiled shall be provided with reasonable time before lunch and at shift end for wash-up purposes. Section 7 - Standby Pay, Call-Out Pay. a) Standby Compensation. Employees performing standby duty shall be compensated at the daily rates established below: Monday through Friday $70 Saturday, Sunday, Holidays $100 In the event of a declared City emergency, this section applies to standby assigned in accordance with applicable department policy. b) Minimum Call-Out Pay. Employees not otherwise excluded from receiving overtime pay who are called out to perform work shall be compensated for at least two hours' pay from the time of the call-out for each occurrence at the appropriate overtime rate. The two-hour minimum does not apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two-hour minimum will apply. Section 8 - Night Shift Premium. Night Shift premium is paid at a rate of 6% of an employee’s base hourly rate. Night Shift premium is paid only for hours actually worked between 6:00 p.m. and 8:00 a.m. Employees who regularly work night shifts shall receive appropriate night shift premiums, relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation. In order to be eligible for night shift premium, an employee must meet the following criteria: a) Be assigned to a shift on a regular basis which is scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.; b) Or be assigned to work another employee’s regularly assigned shift which is scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.; c) Or if your schedule is temporarily changed under Section 3 of this article which is scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 34 of 89 The following are excluded from eligibility for night shift premium: a) Overtime hours; b) Alternate work schedules at an employee’s request which overlap with the hours of 6:00 p.m. and 8:00 a.m. Night shift premium of 6% of base pay shall be paid to those employees whose standard work schedule falls for work performed between the hours of 6:00 p.m. and 8:00 a.m. A minimum of two hours must be worked between 6 p.m. and 8:00 a.m. to qualify for the premium. This premium shall not apply to an employee whose schedule does not qualify for shift differential who requests an earlier scheduled start time that would otherwise qualify the employee for the premium. A minimum of two hours must be worked between 6 p.m. and 8:00 a.m. to qualify for the premium. Night shift premium does not apply for overtime situations unless overtime is approved to replace an employee who would have otherwise received a night shift premium. Section 9 - Bilingual Premium. $50 per pay period shall be paid to a bilingual employee whose abilities have been determined by the Human Resource Director as qualifying to fill positions requiring bilingual speaking and/or writing ability when the employee regularly performs such duties. The Human Resource Director will determine the number, timing, location and duration of the assignments receiving the additional pay provided herein and which languages are needed. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the designation of positions will be referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. Human Resources will respond to the employee within sixty calendar (60) days after receipt of request. Upon approval by the Human Resources Director, the City is required to arrange for language testing within four (4) months of the approval. Section 10 - Communications Training Officer (CTO) Compensation. Public Safety Dispatchers and Chief Public Safety Dispatchers identified by Management to work as a Police Officers Standards and Training (POST) certified CTO will be compensated at a premium pay rate of five (5) percent. The premium pay is provided only for those hours spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center. ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES Section 1 - Uniforms. a) The City will provide uniforms, coveralls or shop coats on a weekly basis, or as otherwise furnished, for the following jobs and/or classifications and any positions necessary or required as determined by management. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 35 of 89 Animal Control Officer Assistant Storekeeper Associate Engineer - Pretreatment Auto Service Mechanic Building Service Person - Lead Building Service Person Cathodic Technician Cement Finisher - Lead Cement Finisher Chemist Community Service Officer (CSO) Electrical Assistant Electrician Apprentice Electrician Lead Engineering Technician III - Refuse Equipment Operator Equipment Operator - Lead Facilities Carpenter Facilities Electrician Facilities Maintenance - Lead Facilities Mechanic Facilities Painter Field Serviceperson Gas System Shop/Field Repairer Gas System Technician I Gas System Technician II Golf Course Equipment Mechanic Golf Course Maintenance Person Heavy Equipment Operator - Lead Heavy Equipment Operator Industrial Waste Inspector Industrial Waste Investigator Instrumentation Electrician Laboratory Technician, Water Quality Control Line Person/Cable Splicer Line Person/Cable Splicer - Lead Mail Services Specialist Maintenance Mechanic/Maintenance Mechanic, Water Quality Control Mechanical Unit Repairer Meter Reader Meter Reader – Lead City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 36 of 89 Mobile Service Technician Motor Equipment Mechanic - Lead Motor Equipment Mechanic Offset Equipment Operator - Lead Offset Equipment Operator Park Maintenance Assistant Community Services Officer Park Maintenance Person Park Crew - Lead Park Maintenance - Lead Park Ranger Parks & Open Space Assistant Police Records Specialist Refuse Disposal Attendant Senior Chemist Senior Industrial Waste Inspector Senior Industrial Waste Investigator Senior Instrumentation Technician Senior Operator, Water Quality Control Senior Mechanic, Water Quality Control Senior Park Ranger Sprinkler System Repairer Street Maintenance Assistant Storekeeper Storekeeper-Lead Street Sweeper Operator Traffic Control Maintainer - Lead Traffic Control Maintainer II Traffic Control Maintainer I Tree Trimmer-Line Clearer Tree Maintenance Assistant Tree Trimmer-Line Clearer Assistant Tree Trimmer-Line Clearer - Lead Tree Maintenance Person Truck Driver Utilities Compliance Technician Utility Field Service Representative Utility Installer/Repairer Utility Installer/Repairer Assistant Utility Installer/Repairer – Lead Utility Locator Water Meter Cross Connection Technician Water System Operator - Lead City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 37 of 89 Water System Operator Water System Operator I Water System Operator II Water Quality Control Plant Operator b) Coveralls will be made available for occasional use as needed to protect clothing for the following classifications and any positions necessary or required as determined by management. Building Inspector Building Inspector Specialist Building Service Person - Lead Cable Splicer Assistant Chief Electric Underground Inspector Electrical Assistant Electrician Facilities Mechanic/Painter Heavy Equipment Operator Lineperson/Cable Splicer Park Ranger Senior Park Ranger Utility Field Service Representative Sprinkler System Repairer Utility Installer Assistant Utility Installer/Repairer Utility Installer/Repairer - Lead c) Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. d) Employee clothing seriously damaged or destroyed in conjunction with an industrial injury will be reasonably replaced by the City. Any other claims alleging City liability may be filed with the City Attorney. e) Except in the Utilities Division, the City will make available, as an alternative to the shirts currently provided under Section 1(a), six (6) cotton polo shirts. Employees in the Utilities Division will be provided with six (6) long-sleeve shirts and two polo shirts. Employees will be responsible for laundering the shirts. Damaged or otherwise unwearable shirts will be returned to the employee’s supervisor and replaced by the City. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 38 of 89 f) Employees are responsible for laundering Park Ranger and Senior Park Ranger uniforms. g) The City will meet and confer with the Union regarding any mandated changes to uniforms. h) In accordance with California Code of Regulations (C.C.R.) section 571(a) the estimated value of City provided uniforms is $21.28 per pay period. Section 2 - Tool Allowance. a) Mechanics in Equipment Maintenance, Park Maintenance Lead, Motorized Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance of $610 annually upon verification of purchase by the employee. b) Parties will meet and confer to determine if additional classifications require tool allowance. Section 3 - Shoe Allowance. a) Safety Shoes. The City will pay the vendor or reimburse full-time employees up to $400 per fiscal year for the cost of job-related safety shoes upon verification of such purchase by the employee. b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related walking shoes for any positions necessary or required as determined by management including Meter Reader and Meter Reader-Lead, in an amount not to exceed $300.00 per year. A walking shoe is a durable work shoe/boot (non steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water resistant; lightweight and durable; and also provides hard surface cushioning. Section 4 – Certifications. The parties agree to retain the current list of required certifications below. Employees who are required to maintain commercial driver's licenses shall have costs for medical examinations paid by: a) Completing an examination through their PEMHCA provider. After benefits have been paid by the PEMHCA provider, upon presentation of proper documentation, the City will reimburse any remaining costs, or b) Completing an examination at the Workforce Medical clinic or other City designated clinic. Employees may use paid leave for attendance at scheduled medical examinations. Employees shall be permitted to use up to two hours of City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 39 of 89 regular City-paid time for attendance at biannual medical examinations. The scheduling of such time shall be preauthorized by the employee’s supervisor. c) The City will pay special registration and/or certification fees which are required by Management. During the term of this agreement, the City and the Union may, by mutual agreement, review, add or delete classifications and/or required certifications listed below: Classification Requirement Facilities Technician Aquatics Facility Operator Certificate Building Inspector/ Buildg Inspection Specialist Certificate as stated in job description Cathodic Technician Corrosion Technician by the National Assoc. of Corrosion Engineers Engineer Professional Professional Engineer Cert. (for step E) Equip Maint Serv Pers. Forklift Operator Cert. (OSHA-approved) Golf Course Maint Pers. Qualified Applicators' License Heavy Equipment Operator Crane Operation Certificate (Utilities and Electric) Indust. Waste Inspector Backflow Prevention Device Tester Inspector Field Services, Utilities D1 (DOH) Hired before July 1, 2012 Installer/Repairer Series D1 (DOH) Maintenance Mechanic Crane Operator Certification (Water Quality) Mech. Unit Repairer Welding Certificate Motor Equip Mechanic and Lead EMS, ASE Planner, Associate Planner AICP Senior Planner City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 40 of 89 Public Safety Dispatcher POST Basic Dispatcher EMD Public Safety Dispatcher, Lead POST Basic Dispatcher POST Supervision EMD Senior Operator, WQC Grade III Wastewater Treatment Plant Operator Certification Surveyor, PW Licensed Land Surveyor Tree Trimmer/Line Clearer Certified Tree Worker and/or Qualified Line Clearance/Tree Trimmer Cert. (OSHA-approved) Tree Trimmer/Line Clearer-Lead Certified Arborist Utilities Install/Rep series Polyethylene Fusing Cert. Gas Operator Certification (DOT) Veterinarian Technician Animal Health Tech. Certification Water System Operator I Grade DI – Water Distribution Operator Water System Operator II Grade DII – Water Distribution Operator & Grade TII – Water Treatment Operator Senior, Water System Operator Grade DIII – Water Distribution Operator & Grade TIII Water Treatment Operator WQC Plant Operator I Grade I Wastewater Treatment Operator Certification. WQC Plant Operator II Grade II Wastewater Treatment Operator Certification WQC Plant Operator Trainee Grade I Wastewater Treatment Operator Certification City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 41 of 89 Water Meter Cross- Connection Technician Backflow Prevention Tester Certification d) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver's License in accordance with the California Vehicle Code and applicable laws prescribed by the Department of Transportation. e) Pipeline Welding Assignment. The City provided a 4% premium in base compensation to the Utility Installer-Repairer and the Installer-Repairer Lead positions in 2006 that met DOT certification requirements and are, or were, assigned these duties. The Utility Installer-Repairer and Utility Installer-Repairer Lead positions that fail to maintain current certifications will not receive a 4% premium on their base pay. Positions assigned these duties and designated by Management to receive this premium will not exceed five (5) Utility Installer/Repairer(s) and Installer/Repairer Lead(s). If the certification is required in the job description, certification must be maintained. In accordance with their job description Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shall receive 4% premium to their base pay for pipeline welding. f) Building Inspector and Building Inspector Specialists. Upon successful completion of probationary requirements, the City will pay Building Inspectors and Building Inspector Specialists a one (1) percent of base salary one-time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year or two payments in a career. The Building Inspector and Building Inspector Specialist Job Descriptions specify current requirements and the Union and City will agree on a list of appropriate certifications eligible for the premium. Premiums will not be paid if certification is not maintained. g) Water and Wastewater System Operator Certification. Employees classified in the following positions: Water Quality Control Plant Operators I and II, Senior Operator Water Quality Control, Laboratory Technician Water Quality Control, Chemist, Senior Chemist, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job Series may be eligible to receive a 1% base pay premium for certifications required by the Department of Health, California Water Environment Association and/or the State Water Resources Control Board. Employees within these job City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 42 of 89 classifications that have successfully completed probationary requirements may request an annual payment of one (1) percent for one (1) certification that is above those listed in their job description. An employee who qualifies for this payment shall be paid 1% of the employee’s annual base salary once per year. The employee shall be responsible for providing the City with written documentation that the employee has obtained and is maintaining the qualifying certification on an annual basis. Premiums will not be paid if certification is not maintained. Eligible employees should verify certification will qualify for the premium before attempting certification. The Union and the City will update the job descriptions to reflect newly required certifications with no further adjustments to base salary. Payments will not exceed a maximum of one percent per year, and will take effect in the pay period following the verification of certification. All costs for obtaining certifications above what the job description requires will be the responsibility of the employee and may be paid for by using the City’s tuition reimbursement program. h) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification. Training to be provided by the City. i) Crane Certification. A Heavy Equipment Operator, Line Person, Line Person Lead, or Maintenance Mechanic who possesses the legally required certification for operation of any crane will receive an increase of one percent (1%) of their base rate effective upon the ratification and adoption of this MOU by the City Council, or upon attainment of the certification, whichever is later. Heavy Equipment Operator (Electric) must possess a Crane certification regardless of hire date. Any employee hired on or after July 1, 2012 may be required to obtain and possess crane certification. For any other employee hired prior to July 1, 2012 crane certification shall be desirable (not required) except under the following circumstances: a) There are insufficient employees in the classification (Heavy Equipment Operator [exclusive of Electric], Lineperson, Lineperson Lead or Maintenance Mechanic) who possess the certification to perform the work; b) The Manager has sought volunteers and no employee in the classification has volunteered to train for the certification; c) All things being equal, the manager has selected the least senior employee in the classification who is judged by the City most likely to successfully complete the training and obtain crane certification. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 43 of 89 c) d) The Manager will allow up to three attempts to pass the crane certification for any employee hired before July 1, 2012 who has been involuntarily assigned to acquire the crane certification. Related training and test costs shall be borne by the City. No employee hired before July 1, 2012 shall be disciplined or discharged for failure to acquire a Crane certification. Section 5 - Weather Protection. The City will provide rainy weather foot protection and one summer hat for the classification of Community Services Officer. ARTICLE X - HOLIDAYS Section 1 - Fixed Holidays. Except as otherwise provided, employees within the representation unit shall have the following fixed holidays with pay: January 1 Third Monday in January (Martin Luther King Day) Third Monday in February Last Monday in May July 4 First Monday in September Second Monday in October Veterans' Day, November 11 Thanksgiving Day Day after Thanksgiving December 25 Either December 24 or December 31 (see below) Employees shall be excused with pay for the full work shift on either December 24 or December 31, provided, however, that City facilities remain open with reduced staffing levels, that Management retains the right to determine work schedules, and that neither day be considered a holiday for purposes of premium pay. If employees are not excused pursuant to this provision, one shift of vacation credit will be added to their vacation accrual. In the event that any of the aforementioned days, except for December 24 or December 31, falls on a Sunday, the following Monday shall be considered a holiday. In the event that any of the aforementioned days falls on a Saturday, the preceding Friday shall be considered a holiday. If December 24 and 31 falls on Sunday, then the preceding Friday will be designated for purposes of the holiday. Exceptions to this provision are listed in Appendix E. Section 2 - Pay for Fixed Holidays. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 44 of 89 a) All employees shall be paid a full day's pay at their regular straight time base hourly rate for all fixed holidays as defined herein. b) An employee must be in a pay status on the workday preceding the holiday to be eligible to be compensated for a holiday. This subsection does not apply to an employee who is on an unpaid medical leave of absence of less than five (5) days. Section 3 - Work on Fixed Holidays. Any employee required to work on a fixed holiday shall be paid time and one-half for such work in addition to his or her regular holiday pay. Work on a fixed holiday beyond the number of hours in a regular shift shall be compensated at double time and one- half. Employees who work a schedule where a regular day off falls on a holiday will accrue the holiday hours they would have normally worked on that day. If an employee has more than four (4) days of holiday time accrued the City will automatically cashout these additional hours. This does not impact the employee’s ability to cashout or transfer to deferred comp holiday hours below the four (4) day threshold. Section 4 - Variations in Work Week. a) An employee whose work schedule requires that his or her regular days off be other than Saturday and/or Sunday shall have an additional day off scheduled by the department in the event a fixed holiday falls during his or her regularly scheduled day off. Every attempt will be made to schedule the day on a mutually agreeable basis. If the day cannot be so scheduled, the employee shall be paid for the day at the straight time base rate. b) Fixed holidays which fall during a vacation period or when an employee is absent because of illness shall not be charged against the employee's vacation or sick leave balance. b)c) If conditions necessitate a departmental closure impacting employees’ regular schedules, management will work with employees to provide assignments unless the employee chooses to take unpaid time off or use paid time off in the form of vacation, personal business or compensatory time. Section 5 - Floating Days Off Employees hired on or before July 1, 2012 will be credited with 3 floating holidays to be scheduled for use by mutual agreement by employee and supervisor. In no event will FH be convertible to cash or other benefits in lieu of Floating Holidays. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 45 of 89 Effective at the close of business 6/30/13 one floating holiday will be eliminated. On July 1, 2013 and every July thereafter, employees will be credited with two (2) Floating Holidays to be scheduled in the same manner as noted above. Employees hired after 7/1/12 will not receive any floating holidays. Floating Holidays not used by the end of the fiscal year will be deemed forfeited. ARTICLE XI - VACATIONS Section 1 - Vacation Accruals. Each employee shall be entitled to an annual paid vacation, accrued as follows: a) First day of continuous service through the last day of the fourth (4th) year: 80 hours vacation per year. b) First day of the fifth year of continuous service through the last day of the ninth (9th) year: 120 hours vacation per year. c) First day of the tenth (10th) year of continuous service through the last day of the fourteenth (14th) year: 160 hours vacation per year. d) First day of the fifteenth (15th) year of continuous service through the last day of the nineteenth (19th) year: 180 hours vacation leave per year. e) Twenty (20) or more years: 200 hours vacation leave per year. Employees may accrue up to three times their annual vacation leave without loss of vacation days. In the event the City is unable to schedule vacation and, as a result thereof, the employee is subject to loss of accrued vacation, the City shall extend the vacation accrual limit up to one year, in which time the excess vacation must be scheduled and taken. As long as there is no interference with departmental operations, there shall be no unreasonable restriction of increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave. Section 2 - Holiday Falling During Vacation. In the event a fixed holiday as defined in Article X falls within an employee's vacation period, which would have excused the employee from work (and for which no other compensation is made), an additional workday for such holiday shall be added to the vacation leave. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 46 of 89 Section 3 - Illness During Vacation. When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. Section 4 - Accrued Vacation Pay for Deceased Employees. An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to his/her estate within thirty days. This proration will be computed at his/her last basic rate of pay. Section 5 - Effect of Extended Military Leave. An employee who interrupts service because of extended military leave shall be compensated for accrued vacation at the time the leave becomes effective. Section 6 - Vacation at Termination. Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Section 7 - Vacation Cash Out. Once each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours, to a maximum of 120 hours, provided that the employee has taken 80 hours of vacation in the previous 12 months. 1. To be eligible for cash out vacation, employees must pre-elect the number of vacation hours they will cash out during the following calendar year up to maximum of 120 hours, prior to the start of that calendar year. The election will apply only to vacation hours accrued in the next tax year and eligible for cash out. 2. The election to cash out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash out vacation hours must cash out the number of accrued hours pre-designated on the election form provided by the City. 3. Employees who do not pre-designate or decline a cash out amount by the annual deadline established by the City will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash out vacation hours in the next tax year. 4. Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to Payroll. Payroll will complete the cash out upon request, provided the requested cash out amount has accrued and is consistent with the amount the employee pre-designated. If the full City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 47 of 89 amount of hours designated for cash out is not available at the time of cash out request, the maximum available will be paid. 5. For employees who have not requested payment of the elected cash out amount by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after the payroll date including November 1. ARTICLE XII - LEAVE PROVISIONS Section 1 - Sick Leave. a) The City shall provide each employee with paid sick leave, earned on a daily basis and computed at the rate of 96 hours per year, with no limits on amounts that may be accumulated, except that for employees hired after July 1, 1983, sick leave accrual accumulation shall be limited to 1,000 hours and subsections (a)(1) and (a)(2), shall not apply. Payment for accumulated sick leave at termination shall be made only in the following circumstances: 1) Eligible employees who leave the municipal service or who die while employed and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their base hourly rate of pay at termination. 2) Full sick leave accrual will be paid in the event of termination due to disability. b) Use of Sick Leave. Sick leave shall be allowed and used in cases of actual personal sickness or disability, medical or dental treatment, or as authorized for personal business. Up to nine days sick leave per year may be used for illness in the immediate family, including registered domestic partner. A new employee may, if necessary, use up to forty-eight (48) hours of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. c) An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her option, choose either to receive the long term disability benefits or to utilize the remainder of his/her accrued sick leave prior to applying for long-term disability benefits. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 48 of 89 d) Sick leave will not be granted for illness occurring during any leave of absence unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. e) Return to Work With Limited Duty. Upon approval of department management and the City Risk Manager, an employee may return to work for doctor-approved limited duty. Approval for return to work shall be based upon department ability to provide work consistent with medical limitations, the location of the work assignment, and the length of time of the limitations. The City doctor may be consulted in determining work limitations. f) If an employee’s illness results in an absence from work for more than three (3) consecutive work days or twenty-four (24) continuous hours, whichever is greater, a doctor’s certificate or other proof of illness may be required. The department head or designee may require a doctor’s certificate or other proof of illness when there is reasonable cause of misuse. g) Leave Committee During the term of this Agreement, upon request by either party, the parties will meet with the goal of developing alternate leave models, such as “Paid Time Off” or other similar benefits. Any changes implemented during the term of this agreement must be by mutual agreement only. f) Sick Leave Incentive/Wellness Committee During the term of the MOA, the City and SEIU 521 shall hold a Labor Management Committee Meeting to discuss unused sick leave incentives and wellness program ideas. This Committee will meet at least three (3) times within the first year. The Committee shall be composed of labor representatives, not to exceed five (5) representatives and (5) City representatives. Section 2 - Bereavement Leave. Leave of absence with pay of three days shall be granted an employee by the head of his or her department in the event of death in the employee's immediate family, which is defined for the purposes of this section as wife, husband, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, mother, step-mother, mother-in-law, father, step-father, father-in-law, brother, brother-in-law, step-brother, sister, step-sister, sister in- law, grandmother, grandmother-in-law, grandfather, grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Request for leave with pay in excess of three (3) days shall be subject to the written approval of the City Manager. Approval of additional leave will be City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 49 of 89 based on the circumstances of each request with consideration given to the employee's need for additional time. Section 3 - Military Leave. The provisions of the Military and Veterans' Code of the State of California shall govern the granting of military leaves of absence and the rights of employees returning from such leaves. Consistent with the Military and Veterans Code, the City of Palo Alto shall pay employees in SEIU bargaining unit their regular salary, salary differential, and all available benefits for up to thirty days per calendar year. Section 4 - Leave Without Pay. a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. b) Family Leave. Family leave will be granted in accordance with applicable state and federal law. c) Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency, Union business or when such absences would not be contrary to the best interest of the City. Non-disability prenatal leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require that employee to use paid leave credits in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 5 - Jury Duty and Subpoenas. Employees required to report for jury duty or to answer subpoenas as a witness in behalf of the State of California or any of its agencies shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received from such duties other than mileage or subsistence allowances within thirty (30) days from the termination of jury service. When an employee returns to complete a regular shift following time served on jury duty or as a witness, such time falling within the work shift shall be considered as time worked for purposes of shift completion and overtime computation. In determining whether or not an employee shall return to his or her regular shift following performance of the duties, reasonable consideration shall be given to such factors as travel time and a period of rest. When a combination of City City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 50 of 89 work time and jury duty equals 14 or more hours in the 24-hour period immediately before the employee's shift starting time, the employee will be allowed a rest period of nine hours. Any portion of the rest period falling within the employee's work shift will be considered as hours worked and compensated at the straight time rate. This provision does not apply to conditions of bona fide emergency. Bona fide emergency conditions are conditions involving real or potential loss of service or property or personal danger. Section 6 - Time Off to Vote. Time off with pay to vote in any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 7 - Disapproval of Leave of Absence. In case of disapproval of extension, revocation or cancellation of an existing leave of absence, notice shall be sent by certified mail, return receipt requested, to the employee stating the date of such action, the reason and a specific date to return to work, which is not less than five working days from date indicated on return receipt. Section 8 - Personal Business Leave Chargeable to Sick Leave. All employees shall be granted up to twenty thirty (320) hours personal business leave per calendar year, chargeable to sick leave. The employee need not disclose the reason for the personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management, and such approval shall not unreasonably be denied. Section 9 - Return to Assignment. The department shall make every effort to ensure that employees resuming work following a leave pursuant to Sections 1- 8 shall be returned to the assignment, shift, and/or work location held immediately prior to the leave. If the employee cannot be so assigned, he or she shall, upon request, be granted a meeting with department management to discuss the reasons for the change. Upon request, the employee shall be afforded Union representation at such a meeting. ARTICLE XIII - WORKERS' COMPENSATION INSURANCE Section 1 - Industrial Temporary Disability. a) While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall be paid full base salary for a period of not to exceed fifty-seven (57) calendar days, unless hospitalized, in which case employees shall be paid full base salary for a period not to exceed sixty (60) days from date of injury. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 51 of 89 b) For any temporary disability continuing beyond the time limits set forth in (a) above, employees shall be paid two-thirds (66 2/3%) of their full base salary at the time of injury for the duration of such temporary disability in conformance with the State law. c) During the period of temporary disability, an employee's eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees. In case of Subsection (a) above, the employee will continue to accrue vacation and sick leave benefits. In the case of Subsection (b), sick leave and vacation benefits shall not be accrued. Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. Vocational Rehabilitation will be made available to employees who have suffered permanent disability as a result of an injury or illness sustained in the course and scope of employment before 1/1/04. For injuries on or after 1/1/04 qualified employees are entitled to supplemental job displacement vouchers in accordance with the California Labor Code, Division 1, Department of Industrial Relations and Division 4, Workers’ Compensation and Insurance, the Americans with Disabilities Act (ADA), and the City of Palo Alto's Workers’ Compensation Program. ARTICLE XIV - BENEFIT PROGRAMS Section 1 - Health Plan. a) Active Employees During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Effective January 1, 2019: • Employee only: $804 • Employee plus one: $1,606 • Employee Family: $2,088 Effective January 1, 2020: • Employee only: $840 • Employee plus one: $1,680 • Employee Family: $2,180 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 52 of 89 Effective January 1, 2021, the City will increase its maximum contribution by 50% of average of the increases to Kaiser and PERS Choice. Provided however, that the total increase of the maximum City contribution shall not exceed 4%. Medical Premium Category PEMHCA contribution* 2016/2017/201 8 (projected for 2017/2018) Additional City Contribution 2016//2017 (projected for 2017/2018) Up to a Total Maximum City Contribution Effective 1st PP following contract adoption Up to a Total Maximum City Contribution Effective January 1, 2017 Up to a Total Maximum City Contribution Effective January 1, 2018 EE only $125/$128/131 $618/$645/$673 $743 $773 $804 EE plus one $125/128/131 $1360/$1416/$1475 $1,485 $1,544 $1,606 EE Family $125/128/131 $1806/$1880/$1957 $1,931 $2,008 $2,088 Effective with the first pay period including January 1, 2015, theThe City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. *PEMHCA minimum changes per statutory determination and has historically been increased by $3 dollars each year. Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the amount listed in the “Total Maximum City Contribution” columns described above. b) Health Plan Coverage for Future Retirees Hired Before January 1, 2005. Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees’ Medical and Hospital Care Act. Effective 1/1/07 the City’s monthly employer contribution for each retiree and their eligible family members, as defined by the CalPERS Health Benefits Program, shall be the amount necessary to pay for the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered to the SEIU employee (among the existing array of plans). However, the City contribution for an employee hired before January 1, 2005 who retires on or after April 1, 2011 the City contribution for the retiree and their eligible family members, as defined by the CalPERS Health Benefits Program, shall be the same contribution amount it makes from time to time for active City employees. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 53 of 89 Effective upon ratification and adoption of this Agreement, tThe City shall provided active unit employees who were hired before January 1, 2005 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. c) PERS – Health Benefit Vesting For Future Retirees Effective January 1, 2005 or any existing employee who opts into this vesting schedule. The CalPERS vesting schedule set forth in Government Code section 22893 will apply to all SEIU employees hired on or after January 1, 2005 or any existing employees who opt into this vesting schedule. Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional year of service credit will increase the employer contribution percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for eligible family members, as defined by the CalPERS Health Benefits Program, will be 90% of the specified employer contribution. The City of Palo Alto's health premium contribution will be the minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. d) Retiree Health Committee During the term of this Agreementagreement the parties will maintain a Retiree Health Committee. The Union shall appoint two (2) Union members (and one Union staff person) to serve on this committee who shall receive reasonable release time to attend Retiree Health Committee meetings. Changes to this section during the term of this Agreement will be by mutual agreement only. The parties agree that Retiree Health Committee meetings may be attended by representatives of other City labor groups. e) Coverage for Domestic Partners. Domestic Partnership Registered with the California Secretary of State. Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Registered with the California Secretary of State. Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for a stipend of two hundred and eighty four dollars ($284.00) per City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 54 of 89 month toward the cost of an individual health plan. Evidence of premium payment will be required with request for reimbursement. fe) Alternative Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any other non-City of Palo Alto employer- sponsored or association-sponsored group medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical plan insurance and receive cash payments in the amount of two hundred eighty-four dollars ($284) for each month City coverage is waived. Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or domestic partner and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284.00) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the employee’s failure to notify the City of a change in status. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. Section 2 - Dental Plan. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 55 of 89 a) The City shall continue to provide a self-funded dental program for the benefit of City employees and their eligible dependents. The City shall pay 100% of the required premiums for the program, except that benefits for regular part-time employees will be prorated as follows: Employees hired after January 1, 2005, who will work less than full time, will receive prorated premium costs for dental benefits in accordance with his/her percentage of a full-time work schedule. Part-time employees currently receiving full benefits will not be impacted. b) The City’s Dental Plan provides the following: • Maximum Benefits per Calendar Year $2,000 per person. c) Effective July 1, 2001, dental implants in conjunction with one or more missing natural teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). d) Effective 1/1/07 the City will add composite (tooth colored) fillings in dental plan posterior teeth. e) Effective 1/1/07 the City will pay up to $2000.00 for Orthodontia coverage. Section 3 - Vision Care. The City shall continue to provide a self-funded vision care program for the benefit of City employees and their dependents. The City shall pay 100% of the required premiums for the program. The benefits of the vision care program shall continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan. Vision benefits for regular part-time employees hired or assigned to a part-time schedule will be prorated in accordance with his/her percentage of a full- time work schedule. Section 4 - Life Insurance. The City agrees to continue the Basic and Supplemental life insurance plan as currently in effect for the term of this Memorandum of Agreement. Section 5 – Long Term Disability Insurance. The City shall continue the long term disability insurance plan currently in effect for the term of this Memorandum of Agreement. For Plan A, the benefit is 66 and 2/3% of pre-disability earnings to the maximum benefit level of $4000.00 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $6,000 of monthly salary, less a credit of $11.17 per month to be paid by the City. For Plan B, the benefit is 60% of pre-disability earnings up to the maximum benefit level of $1800 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 56 of 89 premium applicable to the first $2000 of monthly salary for Plan B. The City will pay premiums in excess thereof. Section 6 - Effective Date of Coverage for New Employees. For newly-hired regular employees, elected coverage will begin on the first day of the month following date of hire. Section 7 - Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered by only one spouse. Section 8 - Deferred Compensation. The City shall continue to make available a Section 457 Deferred Compensation Plan to SEIU employees and will insure reasonable access to Deferred Compensation representatives for all interested employees. Section 9 – Dependent Care Assistance Program and Medical Flexible Spending Accounts. The City shall continue to provide a Dependent Care Assistance Program (DCAP) and Medical Flexible Spending Accounts (FSA) for employees that comply with Section 125 of the Internal Revenue Code. Calendar year limits are set by the IRS. All matters related to the FSA shall be excluded from the grievance requirements of this MOA (per side letter agreed to in 2011). a) Dependent Care Assistance Program: Can be used to pay for qualified day care (or dependent care) expenses with pre-tax dollars. b) Medical FSA: Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. The City will deduct the annual administrative fee through a payroll deduction (currently $4 as of 2015) or if the employee has unused FSA dollars from the prior calendar year, the City will apply those dollars to cover the administrative fee. Section 10 - Training Programs. a) Employees assigned by the City to attend meetings, workshops, or conventions of their professional or technical associations shall have their dues and reasonable expenses paid by departmental funds and shall be allowed to attend such workshops, meetings, and conventions on paid City time. b) City will reimburse for travel, meals and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 57 of 89 will improve an employee’s skills. Per City Policy and Procedure 1-02, the Pre-Travel Authorization Form should indicate expenses that will be paid. ARTICLE XV – RETIREMENT Section 1 - PERS Continuation. a) Pension Group A: 2.7% @ 55. The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 for employees hired before July 17, 2010. The Parties acknowledge that employees under this formula hired before July 17, 2010 are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code Section 20042. b) Pension Group B: 2.0% @ 60 – (Single Highest Year). For employees hired on or after July 17, 2010 and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Classic” CalPERS members), but before the adoption of the modified 2% at 60 formula described below, whichever is later, the City will continue to provide the 2% at 60 retirement formula (“2% at 60”). The Parties acknowledge that employees under the existing 2% at 60 pension formula are subject to a final compensation calculation, for pension determination purposes, based on their single highest year of compensation earnable as provided by Government Code section 20042. c) Pension Group C: 2.0% @ 60 – (3 Highest Years). The City shall further amend its contract with CalPERS to provide miscellaneous “Classic” CalPERS members hired on or after August 1, 2013 with the CalPERS retirement formula two percent (2.0%) of final compensation at age sixty (60) with a final compensation calculation, for pension determination purposes, based on the employee’s three consecutive highest years of compensation earnable, as provided by Government Code section 20037. The City may delay the adoption or implementation of the foregoing amendment to the extent it deems such delay necessary to accommodate legal and administrative requirements. In such event, employees hired between and including August 1, 2013 and the day before the amendment’s implementation date will be placed in the 2% of final compensation at age 60 formula with single highest year earnable compensation as described above. d) Pension Group D: 2% @ 62. Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 58 of 89 including but not limited to the two percent at age 62 (2%@62) retirement formula with a three year final compensation period. Section 2 - Employee Share. Effective with the first pay period including July 1, 2012 employees in Pension Groups A, B and C described in Section 1 above shall pay 8% if enrolled in the 2.7%@55 benefit or 7% if enrolled in the 2%@60 benefit. Employees in Pension Group D shall pay the employee contribution required by the Public Employees’ Pension Reform Act, calculated at fifty percent (50%) of the normal cost. Section 3. Employer Share. Effective the first full pay period following December 1st, 2016, each unit member in Groups A-D shall pay one-half percent (0.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code. Effective the first full pay period following December 1st, 2017, each unit memberemployees in (Groups A-D) shall pay an additional one-half percent (1.00.5%) of their salary toward the employer cost of retirement (in addition to the employee share) in accordance with Section 20516 of the California Government Code. Effective the first full pay period including December 1, 2020, employees in this unit (Groups A-D) shall pay an additional 1% of their salary toward the employer cost of retirement for a total of 2% (in addition to the employee share) contribution toward the employer share. This will result in SEIU employees in Groups A-D paying a total of one two (21) percent of the employer share (in addition to the employee share of 8%) effective the first fully pay period including December 1st, 202017. Pension Group Pension Formula Employee Contributi on Additional Employee Contribution For Employer's Share12/1/201 6 Total Contribution Effective12/ 1/2016 Additional Employee Contribution For Employer's Share12/1/20 17 Total Contribution Effective12/1/20 17 Group A 2.7%@ 55 8% 0.5% 8.5% 0.5% 9% Group B 2%@60 7% 0.5% 7.5% 0.5% 8% Group 2%@60 7% 0.5% 7.5% 0.5% 8% City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 59 of 89 C Group D 2%@62 6.25% 0.5% 6.75% 0.5% 7.25% Section 4 - Utility Rates Discount. Employees who retire and were employed by the City on or before April 1, 1977, and spouses of deceased employees who were employed by the City on or before April 1, 1977, shall continue reductions in utility rates. All retired employees and spouses of deceased employees with documentation showing retiree status from the City shall also have residential privileges at City libraries, city parks, golf course and swimming pools. ARTICLE XVI - COMMUTE INCENTIVES AND PARKING Section 1 - Commute Incentive. It is the City’s interest to reduce single occupancy vehicle trips to the extent possible in order to address current traffic and environmental challenges. During the term of this agreement, the parties shall meet and confer on changes to the City’s commute incentive and parking program adopted by the City Council. Eligible employees may voluntarily elect one of the following commute incentives: a. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. b. Carpool. The City will provide $30 per month (taxable income) to each eligible employee in a carpool for 60% or more of their scheduled work days per month with two or more people. c. Bicycle. The City will provide $20 per month to eligible employees who ride a bicycle to work. This payment is available through the CCD web site in the form of a special Commuter Check (tax free) for bike equipment, gear or repairs. This benefit cannot be combined with other commute benefits. d. Walk. The City will provide $20 per month (taxable income) to eligible employees who walk to work 60% or more of their scheduled work days. e. Transit or vanpool users: Tax-free incentives up to the IRS limit (currently $255/month) are available through the Commuter Check Direct (CCD) web site for employees using Bay Area public transportation or riding in a City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 60 of 89 registered vanpool at least 60% of their scheduled work days. f. f. Go Pass. The Go Pass program will offer civic center and other downtown- based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in all zones seven days per week. g. The City and Union agree to meet in Labor Management Committee to assess and improve the application of the telecommuting policy and option for employees. The deadline for registering with CCD and placing an online order is 8:59 p.m. on the 7th of each month, for the next month’s benefit. For example, employees wishing to order a transit pass by June must place their online orders with CCD by May 7th. Section 2 – Parking Lot Security – Municipal Service Center. The City will provide fenced and locked parking facilities for Municipal Service Center employees. Procedures will be established for entering and leaving the parking facilities. Section 3 – Bicycle Lockers and Motorcycle Parking. The City will provide bicycle lockers and motorcycle parking areas for City employees at mutually agreeable work locations. ARTICLE XVII - PHYSICAL EXAMINATIONS If any non-probationary employee who is required to have a City-provided physical examination not related to workers' compensation programs disagrees with the findings of the City-sponsored physician, he/she may consult with his/her own physician and, if his/her private physician's report conflicts with that of the City physician in terms of ability to work at his/her regular job, then he/she may request an evaluation of his/her problem through a third physician mutually agreed upon by the employee and the City. Cost for such examination will be equally shared and the decision of this physician concerning the continuing ability of the employee to perform his/her work in his/her regular job without exposing himself/herself to further injury as a result of his/her condition shall be the basis for returning the employee to his/her regular work. ARTICLE XVIII – SAFETY Section 1 - Health and Safety Provisions. The City shall furnish and use safety devices and safeguards and shall adopt use practices, means, methods, operations and processes which are reasonably adequate to render such employment and place of employment safe, in conformance with applicable safety regulations under the State City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 61 of 89 Labor and Administrative Code sections. The City shall not require or permit any employee to go to or be in any employment or place of employment which is not safe. Section 2 - Union Cooperation. Union will cooperate with the City by encouraging all employees to perform their work in a safe manner. Section 3 - Safety Committees and Disputes. Safety committees composed of Management and Union stewards in the below listed organizations will meet no less than six (6) times annually to discuss safety practices, methods of reducing hazards, and to conduct safety training. This shall in no way remove the basic responsibility of safety from Management nor shall it in any way alter the responsibility of the employee to report unsafe conditions directly and immediately to his or her supervisor. Community Services Public Works Water-Gas-Wastewater Field Operations Electric Field Operations Water Quality Control a) A committee composed of one facilities Management representative, one building inspection representative, two Union representatives, and the City Risk Manager will meet as needed concerning safety matters of the Civic Center. b)a) A ten-member Citywide Union/Management safety committee with equal Union and Management membership will meet upon call to review safety and occupational health standards and practices, discuss overall City safety and health problems, and to act as an advisory group to the departmental safety committees. The committee shall review all departmental safety programs and recommend change where necessary. c)b) In cases of dispute over safe working conditions the employee will first report such unsafe conditions to his or her supervisor and every attempt will be made to rectify the problem at this level. The employee may contact his or her steward to assist in the resolution of the dispute. If the problem cannot be resolved the Risk Manager will be contacted and the problem will be addressed through the interpretation of the basic safety rules and regulations. Should the problem not be resolved at this step, the grievance procedure will be utilized. Safety grievances shall be submitted at Step III. d) In response to recommendations from the Ergonomics Safety Committee, management will develop training workshops which include information on safe ergonomic work practices. Such workshops will be given at least two times per year. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 62 of 89 Upon release of Cal/OSHA regulations covering safe workplace ergonomic standards, management will immediately adopt such standards as party of its Injury Prevention Program. c) The City will continue employee ergonomicworkplace evaluations in compliance with CalOsha Ergonomic Standard, Title 8, section 5110. ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE Section 1 - General Provisions. The City and the Union recognize that early settlement of grievance or appeal of disciplinary actions is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or appeal of disciplinary action, or Union grievances as provided for below. In presenting a grievance or appeal of disciplinary action, the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Release time for investigation and processing a grievance or appeal of disciplinary action is designated in Article IV of this Memorandum of Agreement (MOA). Section 2 – Definitions. a) Grievance means an unresolved complaint or dispute regarding the application or interpretation of rules, regulations, policies, procedures, Memorandum of Agreement or City ordinances of resolution, relating to terms or conditions of employment, wages or fringe benefits, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance or appeal of disciplinary action procedure. b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action against an employee covered by this Memorandum of Agreement. Discipline is defined as suspensions without pay, reductions in pay, demotion or discharge. Reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not considered discipline. Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure. a) An aggrieved employee may be represented by the Union or may represent himself/herself in preparing and presenting a grievance or appeal of disciplinary action at any level of review. Grievances or appeal of disciplinary action may also be presented by a group of employees. No grievance or appeal of disciplinary action City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 63 of 89 settlement may be made in violation of an existing merit rule or memorandum of agreement. The Union will be notified prior to the implementation of any settlement made which affects the rights or conditions of other employees represented by the Union. The Union and the Steward will be copied on all written representation unit grievance or appeal of disciplinary action decisions. b) An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance or appeal of disciplinary action. Requests for release time to prepare grievance or appeal of disciplinary action shall be made in accordance with the provisions of Article IV, Section 3. c) Beginning with the third step of the grievance or appeal of disciplinary action procedure, the Chief Steward or Alternate Chief Steward may assist in presenting a grievance or appeal of disciplinary action and may be present at all Step III, and IV grievance or appeal of disciplinary action hearings. d) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Union and the reviewer concerned. e) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step. f) The grievance or appeal of disciplinary action may be considered settled if the decision of any step is not appealed within the specified time limit. g) If appropriate, the aggrieved employee(s) or the Union and the department head may mutually agree, in writing, to waive Step I and/or Step II of the grievance or appeal of disciplinary action procedure. h) Grievances or appeal of disciplinary action shall be made in writing and submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The written grievance or appeal of disciplinary action shall contain clear, factual and concise language, including: (1) the name of the grievant; (2) a statement of the facts upon which the grievance or appeal of disciplinary action is based, including relevant dates, times and places; (3) specific provisions of this Agreement or specific City rules, policies, or procedures which the grievance or appeal of disciplinary action alleges has been violated; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance or appeal of disciplinary action. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 64 of 89 i) Any retroactivity on monetary grievances or appeal of disciplinary action shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance or appeal of disciplinary action was filed in writing. j) If the grievance is filed by more than one employee in the bargaining unit, the Union may, at its option, convert it to a Union grievance after Step II of the grievance procedure. The Union may also file a grievance in those instances when, under this Memorandum of Agreement, a Union right not directly related to an individual employee becomes the subject of dispute. Union grievances shall comply with all of the foregoing provisions and procedures. k) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays. l) If a mutually agreed solution is reached during any step of this grievance or appeal of disciplinary action procedure, the agreement shall be placed in writing and signed by the City and the grievant or union. m) Upon request of either party, meetings to discuss the grievance or appeal of disciplinary action shall be held at any step in the grievance or appeal of disciplinary action procedure. n) The Parties may mutually agree in writing to an alternate method(s) of delivery for any communication for any notices required pursuant to Article XIX, Grievance Procedure, of a grievance or appeal of disciplinary action. Such agreement shall list the designated representative(s) for each party and the appropriate contact information for each Party, and describe the agreed-upon method(s) of communication. All designated representatives shall be copied on any communications. On all transmissions that are intended to conform to a time limit, the sender shall retain proof that the transmission was sent within that limit (for example, confirmation of electronic mail transmission or record of successful fax transmission) in the sender’s file for production if a dispute arises over existence or timing of the transmission. Either Party may designate new representatives or terminate an alternate delivery agreement under this section by providing written notice, which shall be effective immediately, to the other. Section 4 - Grievance and Appeal Procedure. Step I. Informal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance or appeal of disciplinary action is based the aggrieved employee shall present the grievance action to his or her immediate City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 65 of 89 supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. Step II. If the grievance is not resolved through the informal discussion in Step 1 or the employee wishes to appeal disciplinary action taken against him/her in the case of a grievance, the employee will reduce the grievance or appeal of disciplinary action to writing and submit copies to the Department head or his or her designee within fifteen (15) working days of the discussion with the immediate supervisor or within fifteen (15) working days from the receipt of a final disciplinary action. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance or appeal of disciplinary action to review the matter and prepare a written statement. Step III. If the grievance or appeal of disciplinary action is not resolved and/or the aggrieved employee is not satisfied with the Step II decision, the grievant or disciplined employee may appeal to the Human Resource Director or his or her designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance or appeal of disciplinary action, the Department Head’s decision at Step II, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step IV. If the grievance or appeal of disciplinary action is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance or appeal of disciplinary action through appeal to the City Manager or through appeal to final and binding arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Union approval. All Step IV appeals must be filed in writing at the Human Resources Department Office within fifteen (15) working days of receipt of the Human Resource Director’s decision at Step 3. If the grievant or appellant elects final and binding resolution by the City Manager, the City Manager will choose the methods he or she considers appropriate to review and settle the grievance or appeal of disciplinary action. The City Manager shall render a written decision to all parties directly involved within fifteen (15) working days after receiving the grievant/appellant’s appeal. If the grievant/appellant elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator within 90 days from the date of receipt of the written request for appeal. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 66 of 89 objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances or appeal of disciplinary action appealed to the arbitrator. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum Of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in Article XX and without regard to the merits of the grievance or appeal of disciplinary action. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Union. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION The City has the right to discipline, demote, or discharge employees for cause. Non- probationary employees whose work or conduct is unsatisfactory but not sufficiently deficient to warrant discipline, demotion, or discharge will be given a written notification of unsatisfactory work or conduct and an opportunity to improve. Failure to correct deficiencies and improve to meet standards may result in discipline, demotion, or discharge. Discipline is defined as suspensions without pay, reduction in pay, demotion, or discharge. Coaching, mentoring, verbal counseling, written counseling, reprimands, transfers, reassignments, layoffs, and negative comments in performance evaluations are not discipline and shall not be subject to the requirements of this Article. Section 1 - Preliminary Notice of Discipline. Prior to imposing disciplinary action, a supervisor shall provide an employee with preliminary written notice of the proposed disciplinary action. The notice of proposed City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 67 of 89 disciplinary action must be in writing and served on the employee in person or by registered mail or Fed-Ex. The notice of disciplinary action shall include: a) Statement of the violations upon which the disciplinary action is based; b) Intended effective date of the action; c) Statement of the cause thereof; d) Statement in ordinary and concise language of the act or the omissions upon which the causes are based; e) Copies of any documents or other written materials upon which the disciplinary action was fully or in part based. f) Statement advising the employee of his/her right to appeal from such action, and the right to union representation and a statement that in order to exercise your rights to union representation the employee may contact their SEIU representative or their steward. g) The date and location of the Skelly meeting and the name of the Skelly Officer Section 2 - Skelly Meeting. The employee shall have the right to respond informally to the charges either verbally or in writing before the discipline is imposed. The employee shall have fifteen (15) working days from receipt of the notice to request this pre- disciplinary administrative review. The employee may request a reasonable extension of the time to respond for justifiable reasons. The Skelly meeting to listen to the verbal responses shall be scheduled with a City representative who is not the manager recommending the discipline (the “Skelly Officer”). The Skelly Officer shall render a final written decision (the “post-Skelly decision”) within fifteen (15) working days of receiving the employee’s response, if any, and shall deliver the post-Skelly decision to the employee by personal delivery or registered mail. The Skelly Officer may sustain, modify, or overturn the recommended disciplinary action. If the Skelly Officer sustains or modifies the disciplinary action, the action may be imposed after the post-Skelly decision is delivered to the employee. Section 3 – Appeals. Appeals of disciplinary action should be processed through the procedures outlined in Steps 2-4 of the grievance appeal of disciplinary action procedure (Article XIX, Section 4.) ARTICLE XXI - NO ABROGATION OF RIGHTS City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 68 of 89 The parties acknowledge that Management rights as indicated in Section 1207D of the Merit System Rules and Regulations and all applicable State laws are neither abrogated nor made subject to negotiation by adoption of this MOA. ARTICLE XXII - OUTSIDE EMPLOYMENT The provisions of Article 4.7 of the Government Code of the State of California will govern the determination of incompatible outside employment. ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS The City agrees that it will not lock out employees, and the Union agrees that it will not engage in any concerted work stoppage or slowdown during the term of this MOA. An employee shall not have the right to recognize the picket line of a labor organization when performing duties of an emergency nature. ARTICLE XXIV - PROVISIONS OF THE LAW Section 1 - Conformity and Separability of Provisions. This Memorandum of Agreement is subject to all current and future applicable Federal and State laws and Federal and State regulations and the Charter of the City of Palo Alto and the Constitution of the State of California. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 2 - Merit Rules and Regulations. This Memorandum of Agreement shall become a part of the City of Palo Alto Merit Rules and Regulations applying to employees assigned to classifications in the SEIU unit. As applied to employees assigned to the SEIU unit, this Memorandum of Agreement shall prevail over any conflicting Merit Rules and Regulations. Section 3 - Resolution. The City and the Union agree by signing this Memorandum of Agreement that the wages, hours, rights and working conditions contained herein shall be continued in full force during the term of this Memorandum of Agreement except as otherwise provided for in the Memorandum of Agreement and shall be binding on both the City and the Union upon ratification by the Council of the City of Palo Alto and upon ratification by Union membership. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 69 of 89 ARTICLE XXV - TUITION REIMBURSEMENT The City shall fund a Tuition and Student Loan Reimbursement Program for use by non- probationary employees in the unit with at least one (1) year of full time service with the City. This program will provide reimbursement to eligible SEIU members for successful completion of undergraduate, or graduate level courses, or collegiate level certification courses or any other pre-approved training related to employment opportunities with the City. The City will fund up to $100,000 for each fiscal year of the term of this MOU. The maximum reimbursement will be one thousand five hundred dollars ($1,500) total per employee for each fiscal year of this MOU. Monies expended on this program will be subject to appropriate IRS regulations. Requests for reimbursement are on a first come first serve basis and must be submitted within thirty (30) calendar days of the end of the fiscal year to be allocated to the fiscal year. The Tuition rReimbursement will be provided if the following conditions are met: a. Courses, classes or trainings must be pre-approved as job related by the division head or designee prior to the start dateof the course. Employees may appeal a denial to the Human Resources Director or designee within 5 working days of receipt of denial, whose decision shall be final. b. Eligible expenses include required textbooks, tuition, fees, lab fees and equipment, but will not include parking fees or health fees related to enrollment. c. Employees must attain a final grace of “C” or better for both undergraduate and graduate work. Courses providing a “pass/fail” must achieve a “pass” to qualify for reimbursement. Ungraded undergraduate and graduate level courses, classes or trainings will be qualify for reimbursement based on proof of successful completion. d. Requests for reimbursement shall be submitted in accordance with the procedures developed by the City. A request for reimbursement will not be considered submitted until it includes the relevant receipts and proof that the necessary grade or successful completion was earned. e. Requests for reimbursement must be submitted within thirty (30) calendar days of the end of the fiscal year to be allocated to the fiscal year. f. Monies expended on tuition reimbursement will be subject to appropriate IRS regulations. g.e. Courses must be taken on the employee’s off duty hours, unless prior approval is received from the employee’s supervisor. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 70 of 89 h. The City may require reimbursement from the employee prior to completion of twelve months of service following receipt of the reimbursement. Reimbursement to the City will be to the extent allowable under law. This program is intended to provide educational and career development opportunities including licenses and certifications that are job related, and shall not replace other training currently offered by the City. Student Loan Reimbursement conditions: a. Employees must have an active student loan in good standing. b. Employees must successfully complete the secondary education with which the student loan was incurred, and must provide proof of successful graduation or completion. c. Requests for reimbursement shall be submitted in accordance with the procedures developed by the City. A request for reimbursement will not be considered submitted until it includes proof of payment towards the employee’s student loan within the eligible fiscal year. ARTICLE XXVI - COST REDUCTION PROGRAMS During the term of this agreement, the Union will aggressively assist Management in developing cost reduction programs. Such programs may include voluntary reduced hours/pay after this concept is studied by Management, and with such application as may be approved by Management. ARTICLE XXVII – TERM The Term of this Memorandum of Agreement shall commence on December 1, 2015 January 1, 2019 and shall expire on December 31, 202118. The Parties agree that they will commence negotiations over a successor to this Memorandum of Agreement no later than one hundred eighty (180) days (July 2, 202118) before its expiration. If, at the time this Memorandum of Agreement would otherwise expire, the parties are continuing to negotiate a successor Memorandum of Agreement, upon mutual agreement the terms and conditions of this Memorandum will continue in effect. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 71 of 89 EXECUTED: FOR LOCAL 521, SEIU, CTW: FOR CITY OF PALO ALTO: _______________________________ _______________________________ Miesha BrownJim Philliou, SEIU Chief Negotiator James KeeneEd Shikada, City Manager __ Lynn KrugMargaret Adkins, Chapter Chair Rumi Portillo, Human Resources Director __ Sandra Floyd, SEIU Worksite OrganizerAnthony Mouton Allyson HauckNicholas Raisch, Chief Negotiator _____ __ Ratu Serumalini Joseph Duran Natalie KorthamarTori Anthony, Manager of Employee and Labor Relations City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 72 of 89 __ Alison dDe GeusMark Chase Maria PatinoGrace Castor, HR Representative ___ Alicia Spotwood Jon Hospitalier __________ Martha WaltersAimee Bailey Dean BatchelorRichard Baptist __________ Joseph Luttrell Erwin Gonzales Debra BurgerKristen O’Kane __________ George Parry Margaret Quillman Gayathri Kanth Diane Lai __________ Lydia Wallace-Pounds Rhyena Halpern __________ Lynn Krug __________ Kyle Carbajal Ratu Serumalani Richard Baptist Gus Ibarra Mary Sekator Alex Gonzales Andrez Escamilla Pete Quiroz Robin Ellner James Stuart City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 73 of 89 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 74 of 89 APPENDIX A The salary rates of bargaining unit classifications will be as set forth in Appendix A of this MOA Base Salary: Effective the first full pay period following adoption by Council (anticipated Council meeting April 22, 2019, PP10), employees in this unit shall receive a 3.5% salary increase. Effective the first full pay period including December 1, 2019 (PP25), employees in this unit shall receive a 3.5% salary increase. Effective the first full pay period including December 1, 2020, employees in this unit shall receive a 3.0% salary increase. Recruitment and Retention For job families below median after receiving the 3.5% salary increase upon Council adoption of the contract listed above, the City will provide market adjustments to market median. Job Families specified below are exempt from this section’s market adjustments. Effective the first full pay period following adoption of this contract by Council, the following additional adjustments will be made: a) Public Safety Dispatch (Job Family) will receive an additional 5% salary effective the first full pay period following adoption of this contract by Council for a total of an 8.5% salary increase. b) Lineperson Cable Splicer Job family (excluding Lineperson job series, Compliance Tech job series, Overhead Underground Troubleman, and Utility Systems Operator series) will receive an additional 10% salary effective the first full pay period following adoption of this contract by Council for a total of a 13.5% salary increase. c) Lineperson job series, Compliance Tech job series, Overhead Underground Troubleman, and Utility Systems Operator series will receive an additional 20% salary effective the first full pay period following adoption of this contract by Council for a total of a 23.5% salary increase. Resolution of Charges, Grievances, and meet and confers The Union agrees to withdraw the following: City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 75 of 89 • Grievance # 77457-2018- Comp Time • Grievance # 76887-2017- Schedules • ULP No. SF-CE-1649-M • Resolution of Lab Tech Job Description meet and confer City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 76 of 89 Effective the pay period following execution of a successor following ratification and approval by the Union and the City Council, employees in this unit will receive a 1.5% salary increase. Effective the pay period following December 1, 2016, employees in this unit will receive a 3% salary increase. Effective the pay period following December 1, 2017, employees in this unit will receive a 3% salary increase. This Appendix will be amended to reflect salary increases and market adjustments with the effective dates shown in Appendix A-1, with the final salary schedule as shown in Appendix A-2. • For employees below median after receiving the first salary increase of 1.5% as listed above, the City will provide 1/3 market adjustment to median effective the first pay period following ratification by the Union. • The City will provide the second 1/3 market adjustment to median, effective the first pay period following December 1, 2016. • The City will provide the final 1/3 market adjustment to median, effective the first pay period following July 1, 2017. For these market adjustments, the City will use market data effective as of December 31, 2015. • The City shall maintain service retention steps of 2.5% of base for Dispatcher I, II and Lead at the beginning of 7th year and beginning of 10th year. • Utility System Operators will receive a 10% recruitment and retention pay increase the first full pay period following adoption of this agreement • Public Safety Dispatchers (I,II, and Lead) will receive a 10% recruitment and retention pay increase the first full pay period following adoption of this agreement. • WQCP Operators and Senior Operators will receive a 5% recruitment and retention pay increase the first full pay period following adoption of this agreement. APPENDIX B. APPRENTICESHIPS City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 77 of 89 Note: Employees hired into a Lineperson Apprenticeship position on or before April 11, 2016 will continue to progress through the Apprenticeship steps and into the Lineperson journey rate at the same intervals as existed before April 11, 2016 in the Apprenticeship Program. Substation Electrician, Street Light /Traffic Signal / Fiber Technician, Lineperson/Cable Splicer APPRENTICE: Upon completion, may lead to Journey level position. The Utilities Department has formalized the Apprenticeship programs in the Electric Section to develop journey level electricians/technicians and lineperson/cable splicers. The following are basic concepts/principles to be incorporated: 1. The administration and operation of the Apprenticeship programs will be managed by the Apprenticeship Committee, which will be selected by the Manager of Electric Operations and comprised of two (2) bargaining unit members designated by Local 521 and two (2) Utility Supervisors and the Manager of Electric Operations. The Manager of Electric Operations will maintain oversight of the program. The Apprenticeship Program will be subject to review and approval by the State of California Department of Industrial Relations Division of Apprenticeship Standards. 2. The journey level position will not be a promotional opportunity for anyone other than the apprentice under filling the position, as long as that apprentice is successfully progressing through the program. 3. Employees within Electric Operations, who qualify, will be given first consideration for the apprentice position prior to other City classifications or recruiting from outside the City. 4. A letter of agreement will be entered into by the apprentice and the City identifying the terms and conditions of the program. 5. The program will normally require eight thousand (8000) work hours (48 months) to complete for Lineperson Cable Splicer and six thousand (6000) work hours (36 months) for Substation Electrician, Street Light /Traffic Signal / Fiber Technician positions. 6. Normal progress through the program will be in periodic increments with formal evaluations. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 78 of 89 7. The salary steps for the Substation Electrician, Street Light /Traffic Signal / Fiber Technician and Lineperson Cable Splicer apprenticeships are outlined in the State of California Department of Industrial Relations Division of Apprenticeship Standards. Employees hired into a Lineperson/Cable Splicer Apprenticeship position will be paid at step 1 of the Lineperson/Cable Splicer Apprentice step range. Upon completion of all course work requirements outlined in the apprentice syllabus, the employee will progress as follows: Month Step Step Intervals 1-12 1 12 months 13-24 2 12 months 25-36 3 12 months 37-42 4 6 months 43-48 5 6 months Upon successful completion of the fourth year following commencement of the Apprenticeship, the employee will be reclassified/progressed to Lineperson / Cable splicer Journey Level and paid at the top step (step 5) of the journeyman rate. In any case, successful completion of the program and movement into the Lineperson Cable Splicer journey level classification will not transpire until the employee has fulfilled all of the requirements outlined in the program content description and received the recommendation of the Apprenticeship Committee. Employees hired into a Substation Electrician or Street Light /Traffic Signal / Fiber Technician Apprenticeship position will be paid at step 1 of the Substation Electrician or Street Light /Traffic Signal / Fiber Technician step range. Upon completion of all coursework requirements outlined in the apprentice syllabus, the employee will progress as follows: Month Step 1-6 1 7-12 2 13-18 3 19-24 4 25-36 5 City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 79 of 89 Upon successful completion of the Apprenticeship, the employee will be reclassified / progressed to Substation Electrician or Street Light /Traffic Signal / Fiber Technician Journey Level and paid at the fifth step (step 5) of the journeyman rate. In any case, successful completion of the program and movement into the Substation Electrician or Street Light /Traffic Signal / Fiber Technician journey Level classification will not transpire until the employee has fulfilled all of the requirements outlined in the program content description and received the recommendation of the Apprenticeship Committee. 8. Should an apprentice prove deficient in progressing through either the coursework or on-the-job training portion of an apprenticeship step, the apprentice shall not progress to the next higher step nor shall the apprentice receive the step increase in wages. The apprentice as described above may at the discretion of the appropriate Division Manager, be granted a three (3) month extension to eliminate the deficiency and be allowed to progress to the next higher step in the apprenticeship and receive the step increase in wages. *Note: A maximum of two (2) time extensions may be granted during the term of the apprenticeship. Any apprentice that is removed due to documented deficiency shall have their employment terminated. 9. The City and the Union agree to review or develop job descriptions to better reflect the qualification necessary to attract and retain successful candidates for this program. It is further agreed that the job descriptions will not warrant additional compensation. 10. Training will consist of on-the-job (OJT) and required training as outlined in the program, Training costs will be funded by departmental funds and employees will be compensated their normal wages while attending required training. Personal time spent in off-the-job training and/or study will not be compensated. 11. The apprentice will be under the continuing guidance of an appropriately qualified journey level person during OJT. Such journey level persons will be assigned by Management from among volunteers who will not receive additional compensation. 12. Qualifications/progress will be verified by appropriately kept records. 13. Unless specifically stated otherwise, regular City personnel policies and MOA provisions will apply to the apprenticeship program. 14. This program may become a conceptual model for apprenticeships in other divisions or departments. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 80 of 89 APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION Section 1. Exceptions to Standard Workday or Work Week for SEIU Representation Unit: Library Department Coordinator, Library Programs Librarian Senior Librarian Library Specialist Library Associate In a given workweek, staff may work three eight-hour days, one seven-hour day, and one nine-hour day. On a voluntary basis, staff may work five non-consecutive days within seven. Section 2. Rules Governing Flexible Work Hours. These rules and procedures are established pursuant to Article VI, Section 8, and are an application of Article VIII, Sections 1, 2, and 3 of the Memorandum of Agreement to the classifications of Coordinator, Recreation Programs; Producer, Arts & Sciences Programs; Program Assistant; Theater Specialist, in the Recreation and Arts & Sciences Divisions of the Community Services Department, and the classifications of Associate Planner, Building Planning Technician, CDBG Coordinator, Engineer, , Planner, and Senior Planner in the Planning and Community Environment Department. a) Flexible Work Schedule 1. Employees in the covered classification shall be permitted to arrange flexible work schedules with division approval, providing that such schedules shall include forty (40) hours per week. 2. Standard daily office hours are typically Monday through Friday, between the hours of 8:00 a.m. and 6:00 p.m. as determined by the Department. Flexible hours may occur for supervision of, and/or attendance at, evening programs, meetings, weekend events, or other programs. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 81 of 89 b) Overtime 1. Emergency call-out work shall be defined as overtime work and compensated per standard City practices. 2. If the need arises for overtime work due to an unusual circumstance calling for extra hours or due to a special event, compensation shall be allowed with prior approval of the Director of Recreation, Director of Arts and Sciences, or the Director of Planning and Community Environment, and shall be compensated for, as spelled out in the Memorandum of Agreement. Section 3. 2080 Plan a) Either the Union or the City may withdraw from the Plan by giving the other party 30 calendar days written notice. In the event of termination of the plan, the covered classifications will return to an 8-hour or other authorized workday as provided under Article VIII, Section 1, of this Memorandum of Agreement. b) Provisions of the 2080 Plan are as follows. To the extent that these provisions are in conflict with other provisions of the Memorandum of Agreement, these provisions will prevail. c) The 2080 Plan or “12 hours per Shift Schedule” is an authorized work schedule for the Utility Systems Operators and Water Quality Control Plant Operators. 2080 Plan Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For scheduling purposes, and subject to the Merit System Rules and Regulations, the employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks at the normal number of hours worked per week. Any employee covered by the Plan who works up to 2,080 hours per year is compensated for all hours worked at the agreed upon rate. The City must pay overtime for all hours worked in excess of 12 in any workday, 56 hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of overtime will be at time and one-half the employee's regular rate of pay (or current contract overtime rate, if different). Shift Schedule The shift schedules combined must provide full 24-hour, seven (7) days per week coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule shall be a rotating schedule. The Utility Systems Operators’ shift schedule will reach the equivalent of 40 hours per week in five weeks. The 12-hour shifts begin at 7:00 a.m. and 7:00 p.m. The Relief shift shall begin at 7:00 a.m. and end at 3:00 p.m. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 82 of 89 with lunch taken while working. The shift schedule shall be rotating schedule. The Water Quality Control Plant Operators’ shift schedule will reach the equivalent of 40 hours per week in two weeks. There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon on the fourth day. Pay Period Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay periods and workweek for the Water Quality Control Plan Operators will begin Saturday at 6:01 a.m. Wages Wages will be based on the City of Palo Alto Compensation Plan, which may vary from time to time as mutually agreed upon. Overtime Under the 2080 Plan, the City will pay overtime for all hours worked in excess of 12 in any workday, 56 in any work week, or 2080 in 52 weeks, as the case may be. Overtime will also be paid for hours worked when an employee is called in to work other than their regularly-scheduled shift. The overtime rate of pay will be one and one-half times (or current contract overtime rate, if different) of the employee's regular rate of pay. All overtime worked will be paid to the employee. No compensatory time off for overtime will be allowed with the exception of Water Quality Control Operations. Relief Employees This provision only applies to the Utility Systems Operators. The five Operators share the relief week evenly as they rotate through the five week cycle. Relief employee(s) will be used within the 12-hours shift schedule only when relieving for the System Operators on shift. When not relieving, they will work four eight-hour shifts. When a vacation relief week results in a 36-hour or 48-hour week, the operator working said week shall be paid at one and one-half (1½) time their normal rate of pay for hours that exceed thirty two (32) hours. Relief Duties This provision only applies to the Utility Systems Operators. An employee who is scheduled to perform relief duties shall be available for duty in revolving shifts on any day of the week and may be assigned for relief in any shift without advance notice. Relief employees will be paid standby pay during their relief week. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 83 of 89 Standby This provision only applies to the Utility Systems Operators. An employee who is on relief duties is covering standby, and will be compensated according to Article VIII, Section 7 (a) of the Memorandum of Agreement. If the relief employee is on vacation or otherwise unavailable for relief duties, the employee(s) on their three or four-day off period will be first on standby. Management reserves the right to utilize Management personnel as Operators on a short-term, as needed basis, if no Operator is available. Filling Vacant Positions If the City elects to fill a vacancy other than by reassignment of the shift or the utilization of prior or succeeding shift personnel, the following procedure shall be used: Employees will be called according to their position on the Pre-arranged Overtime List (POL), with the person with the lowest balance being the first one called. The purpose of the POL is to fairly distribute the available opportunities. If an employee turns down the overtime, that amount will be added to the employee's POL balance. If an employee cannot be contacted for such assignment, the employee will not have any overtime added to their POL account balance. Shift Changes Shift changes caused by scheduled time off or sick leave will not be considered an official change in shift. Maximum Hours Worked No employee shall work more than 18 consecutive hours. Rest Period In a 12-hour workday, employees are entitled to a rest period of 8 consecutive hours after working 6 hours overtime during the 12 hours immediately before the regularly scheduled hours of work on a workday or non-workday. Holidays Employees who begin their day or night shift on an observed holiday will receive overtime premium in accordance with Article X, Section 3 of the Memorandum of Agreement. Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. Employees working for Water Quality Control Operations may accrue holiday time convertible to vacation. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 84 of 89 Sick Leave Sick leave will be earned as indicated in Article XII, Section 1(a) of this MOA, and shall be charged in increments of one hour. Floating Days Off Floating holidays will be made available to eligible employees and used pursuant to Article X, Section 5. Vacation An employee's total entitlement will be converted to hours (eight hours = one day). A workday will consist of 12 hours, and employees taking vacation will be charged 12 hours of use. Two week notification is required for any scheduled time off. Only one person at a time may be scheduled off. It is the intention of the City that vacation be taken in units of one work week; however, with approval of his/her supervisor, an employee may use his/her accrued vacation in units of less than one work week. Meals Shift employees shall be permitted to eat their meals during work hours and shall not be allowed additional time, therefore at City expense. Shift Premium Shift premium will be handled in accordance with the current Memorandum of Agreement between the City and the Union, Article VIII, Section 8. Jury Duty Time off for jury duty which occurs on a regularly scheduled workday will result in the employee being credited with up to 12 hours worked, for pay purposes. Employees called for jury duty who are working the evening portion of the 12-hour schedule will be placed, for payroll and scheduling purposes, on the day shift for each scheduled day such employee is required to report for jury duty, and will not be required to work the evening 12-hour shift before or after being required to report for jury duty. However, such employee shall return to work on the day shift upon being released from such duty if there are at least four hours remaining prior to the end of the day shift. All other provisions of Article XII, Section 5, of the current Memorandum of Agreement shall apply. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 85 of 89 APPENDIX D. IN-LIEU PREMIUMS 1. For employees in the following operations assigned to work schedules other than Monday through Friday, the calendar day will be considered the holiday for premium pay of in-lieu scheduling purposes: Communications Water Quality Control Animal Control Golf Course Utilities Services Landfill Open Space Electric System Operator c) If December 24 and 31 fall on Sunday, then the preceding Friday will be designated for purposes of excused time off, except in the case of Community Services staff who may be scheduled to work on Saturday, in which case Saturday will be designated for purposes of excused time off. For Open Space and Library personnel, designation of excused time off will be based on Park and Library schedules and employee preference. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 86 of 89 APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS 1. Promotional opportunities within the Communications Division will be carried out in compliance with procedures set forth in Article VI, Section 5, of the Memorandum of Agreement between the City and SEIU Local 521, except that: a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined as Division Seniority. • Division Seniority, for the purposes of shift scheduling, vacation scheduling and promotional opportunities will be calculated from an employee’s first day of employment in the division. Any unpaid leave that is not protected under FMLA or CFRA will not count as service days towards seniority, unpaid furlough, and unpaid closure time. Other areas of seniority not mentioned in this article will follow Article 6, Section 5, e “Seniority” of the Memorandum of Agreement between SEIU 521 and the City of Palo Alto. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 87 of 89 APPENDIX F. RECOVERY OF CITY TRAINING COSTS In recognition of the extended training provided to affected employees, the Parties agree that the City may recover up to thirty percent (30%) of its cost for training employees, hired on or after July 1, 2012, in all Utilities Apprentice classifications and in the Park Ranger Apprentice classifications if the employee voluntarily terminates from the City or abandons his or her City employment before completing three years of City service in the Journeyman classification or Park Ranger classification. The amount recovered shall reasonably reflect the City’s cost for the training, but will exclude all wage or benefit costs, and will be prorated to reflect the portion of the thirty-six (36) month post-training service period remaining at the time of the employee’s termination. As of July 1, 2015 thirty percent (30%) of the City’s average cost for training employees in: • Lineperson/Cable Splicer Apprenticeship Program is $5600.00 • For the Field Service Representative, the City’s two year training cost is $ 6,000 • For Substation Electrician Apprenticeship Program is $4800.00 • For Street Lighting / Traffic Signals / fiber Apprentice program is: $1800.00 • For Park Ranger, the City’s two-year training cost is:$6,300 The employee will be required to sign an agreement providing for reimbursement to the City as provided above on the form attached hereto as Appendix H. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 88 of 89 APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT This Agreement is entered into between ___________ (“Employee”) and the City of Palo Alto (the “City”), as authorized by the Memorandum of Agreement between the City and SEIU Local 521. RECITALS A. The purpose of this Agreement is to limit the City’s risk that it will invest substantial sums in the Employee’s training but potentially lose the value of that training if the employee terminates without rendering substantial journey level service to the City after training. B. The City may require reimbursement from Employee of thirty percent (30%) of the total training cost for _______position, subject to abatement when specified service requirements are met. C. On or about (date) City extended to Employee a conditional offer of employment in the position of _________(position), subject to Employee’s agreement to complete the training necessary to perform the duties of _______ (position), under the terms of the training program. The ______(position) requires [description of training], which as of July 1, 2015 cost the City approximately $ over the course of the training. D. This agreement sets forth the Employee’s agreement to reimburse the City for the City’s investment in the Employee’s training if the employee voluntarily terminates from the City prior to the completion of thirty-six months of service following successful completion of the training. THEREFORE, the Parties agree to the terms set forth below: By signing this agreement, the Employee understands that s/he is bound by agrees to the following terms: 1. ____________________________________ (hereafter “Employee”) agrees that in training Employee for the position of _________________________________________, the City of Palo Alto (hereafter “City”) incurs a total cost of $___________. 2. Employee agrees that amounts recoverable under this agreement do not include Employee wage or benefit costs. City of Palo Alto and SEIU Local 521 December January 1, 20195- December 31, 202118 Page 89 of 89 3. Employee agrees that in the event he/she voluntarily terminates or abandons his or her employment from the City prior to the completion of thirty-six (36) months of service following the successful completion of his or her apprenticeship, he/she will repay the City for the cost of training noted above, prorated to reflect the months of service the Employee has completed following successful completion of their training. Employee agrees that for the purpose of this agreement, “time of service” shall begin on the date following the successful completion of the Employee’s training. 4. Employee agrees that the aggregate amount of repayment due will be determined based upon the attached proration table. 5. Employee agrees that repayment shall be due and made in equal monthly installments over the twelve (12) months immediately following termination, on the first of each such month. 6. If Employee does not fully reimburse the City for the amounts due when due, the entire aggregate amount owed will become immediately due, the employee will be deemed in default on this agreement and the City may initiate legal proceedings to collect said amounts. Employee will be responsible for all reasonable collection costs and attorney fees incurred by the City in undertaking such proceedings. The City may elect to forbear taking such action to allow Employee the opportunity to become current on the debt. Such forbearance will not alter the Employee’s default status or adversely affecting the City’s right to later initiate proceedings for recovery pursuant to this Agreement. 7. This agreement shall be effective on the date listed below. DATED: ___________________ ______________________________________ Employee ______________________________________ Title, City of Palo Alto Benchmark Title (Bold) Job Family Positions (not bold) To Median of the Market Effective first full pay period following adoption Market or Recruitment/ret ention increase effective payperiod following adoption Effective first full pay period following December 1, 2019 Effective first full pay period following December 1, 2020 Total over Contract Accounting Specialist -10.8%3.5%7.3%3.5%3.0%17.3% ACCT SPEC 3.5%7.3%3.5%3.0%17.3% ACCT ASSISTANT 3.5%7.3%3.5%3.0%17.3% ACCT SPEC-LEAD 3.5%7.3%3.5%3.0%17.3% PAYROLL ANALYST 3.5%7.3%3.5%3.0%17.3% PAYROLL ANALYST - S 3.5%7.3%3.5%3.0%17.3% UTIL ACCTG TECH 3.5%7.3%3.5%3.0%17.3% UTIL CREDIT/COL SPEC 3.5%7.3%3.5%3.0%17.3% Administrative Associate II (Staff Sec)2.1%3.5%0.0%3.5%3.0%10.0% ADMIN ASSOC II 3.5%0.0%3.5%3.0%10.0% ADMIN ASSOC I 3.5%0.0%3.5%3.0%10.0% ADMIN ASSOC III 3.5%0.0%3.5%3.0%10.0% MAILING SVCS SPEC 3.5%0.0%3.5%3.0%10.0% OFFSET EQUIP OPERATOR 3.5%0.0%3.5%3.0%10.0% MANAGEMENT ASST 3.5%0.0%3.5%3.0%10.0% MANAGEMENT ASST - S 3.5%0.0%3.5%3.0%10.0% PROGRAM ASSISTANT 3.5%0.0%3.5%3.0%10.0% PROGRAM ASSISTANT I 3.5%0.0%3.5%3.0%10.0% PROGRAM ASSISTANT II 3.5%0.0%3.5%3.0%10.0% EMERGENCY MED SVS DATA SPECIALIST 3.5%0.0%3.5%3.0%10.0% Animal Control Officer -1.5%3.5%0.0%3.5%3.0%10.0% ANIMAL CONTROL OFF 3.5%0.0%3.5%3.0%10.0% ANIMAL CONTROL OFF - L 3.5%0.0%3.5%3.0%10.0% Associate Engineer -10.4%3.5%6.9%3.5%3.0%16.9% ASSOC ENGINEER 3.5%6.9%3.5%3.0%16.9% ASSOC POWER ENGR 3.5%6.9%3.5%3.0%16.9% ASST ENGINEER 3.5%6.9%3.5%3.0%16.9% ASST POWER ENGR 3.5%6.9%3.5%3.0%16.9% ENGINEER 3.5%6.9%3.5%3.0%16.9% MARKETING ENG 3.5%6.9%3.5%3.0%16.9% SEIU 521- City of Palo Alto Job Families updated 3.20.19 - DRAFT POWER ENGR 3.5%6.9%3.5%3.0%16.9% PLANS CHECK ENGR 3.5%6.9%3.5%3.0%16.9% UTIL ENGR ESTIMATOR 3.5%6.9%3.5%3.0%16.9% UTIL ENGR ESTIMATOR - L 3.5%6.9%3.5%3.0%16.9% PROJECT ENGINEER 3.5%6.9%3.5%3.0%16.9% PROJECT ENGINEER -S 3.5%6.9%3.5%3.0%16.9% ELECTRIC PROJECT ENGINEER 3.5%6.9%3.5%3.0%16.9% ELECTRIC PROJECT ENGINEER -S 3.5%6.9%3.5%3.0%16.9% TRAFFIC ENGINEERING LEAD 3.5%6.9%3.5%3.0%16.9% Building Inspector -3.1%3.5%0.0%3.5%3.0%10.0% BLDG INSPECTOR 3.5%0.0%3.5%3.0%10.0% DEVELOPMENT PROJECT COOD I 3.5%0.0%3.5%3.0%10.0% DEVELOPMENT PROJECT COOD II 3.5%0.0%3.5%3.0%10.0% DEVELOPMENT PROJECT COOD III 3.5%0.0%3.5%3.0%10.0% PLANNING ARBORIST 3.5%0.0%3.5%3.0%10.0% PLANNING ARBORIST - S 3.5%0.0%3.5%3.0%10.0% PLANS EXAMINER 3.5%0.0%3.5%3.0%10.0% BLDG INSPECTOR SPEC 3.5%0.0%3.5%3.0%10.0% CHF INSPEC WGW 3.5%0.0%3.5%3.0%10.0% CODE ENFORCEMENT OFF 3.5%0.0%3.5%3.0%10.0% CODE ENFORCEMENT OFF-L 3.5%0.0%3.5%3.0%10.0% SURVEYING ASST 3.5%0.0%3.5%3.0%10.0% SURVEYOR, PUBLIC WORKS 3.5%0.0%3.5%3.0%10.0% INSPECTOR, FIELD SVC 3.5%0.0%3.5%3.0%10.0% Building Service Person -0.8%3.5%0.0%3.5%3.0%10.0% BLDG SERVICEPERSON 3.5%0.0%3.5%3.0%10.0% BLDG SERVICEPERSON-L 3.5%0.0%3.5%3.0%10.0% EQUIP MAINT SERV PER 3.5%0.0%3.5%3.0%10.0% Buyer -4.7%3.5%1.2%3.5%3.0%11.2% BUYER 3.5%1.2%3.5%3.0%11.2% ASSOC BUYER 3.5%1.2%3.5%3.0%11.2% SR BUYER 3.5%1.2%3.5%3.0%11.2% SR BUYER - S 3.5%1.2%3.5%3.0%11.2% Chemist -4.2%3.5%0.7%3.5%3.0%10.7% CHEMIST 3.5%0.7%3.5%3.0%10.7% LAB TECH WQC 3.5%0.7%3.5%3.0%10.7% SR CHEMIST 3.5%0.7%3.5%3.0%10.7% Community Services Officer -1.6%3.5%0.0%3.5%3.0%10.0% COMMUNITY SERV OFFCR 3.5%0.0%3.5%3.0%10.0% COMMUNITY SERV OFFCR - L 3.5%0.0%3.5%3.0%10.0% COURT LIAISON OFFICE 3.5%0.0%3.5%3.0%10.0% CRIME ANALYST 3.5%0.0%3.5%3.0%10.0% PROPERTY EVID TECH 3.5%0.0%3.5%3.0%10.0% POL REC SPEC - L 3.5%0.0%3.5%3.0%10.0% POL REC SPEC I 3.5%0.0%3.5%3.0%10.0% POL REC SPEC II 3.5%0.0%3.5%3.0%10.0% PARKING OPERATIONS - L 3.5%0.0%3.5%3.0%10.0% Coord, Recreation Programs -1.4%3.5%0.0%3.5%3.0%10.0% COORD REC PROG 3.5%0.0%3.5%3.0%10.0% COORD PW PROJ 3.5%0.0%3.5%3.0%10.0% COORD TRANS SYS MGMT 3.5%0.0%3.5%3.0%10.0% COORD TRANS SYS MGMT - S 3.5%0.0%3.5%3.0%10.0% COORD UTIL PROJ 3.5%0.0%3.5%3.0%10.0% COORD UTIL PROJ - S 3.5%0.0%3.5%3.0%10.0% COORD ZERO WASTE 3.5%0.0%3.5%3.0%10.0% EDUCATOR 3.5%0.0%3.5%3.0%10.0% PROD ARTS/SCI PROG 3.5%0.0%3.5%3.0%10.0% PROG COORD 3.5%0.0%3.5%3.0%10.0% THEATER SPECIALIST 3.5%0.0%3.5%3.0%10.0% VOLUNTEER COORD 3.5%0.0%3.5%3.0%10.0% Customer Service Representative -2.9%3.5%0.0%3.5%3.0%10.0% CUST SVC REPRESENT 3.5%0.0%3.5%3.0%10.0% CUST SVC SPEC 3.5%0.0%3.5%3.0%10.0% CUST SVC SPEC - LEAD 3.5%0.0%3.5%3.0%10.0% UTIL MARKETING PROGAM ADMIN 3.5%0.0%3.5%3.0%10.0% UTIL KEY ACCT REP 3.5%0.0%3.5%3.0%10.0% ASSOC BUYER 3.5%0.0%3.5%3.0%10.0% Desktop Technician -0.9%3.5%0.0%3.5%3.0%10.0% DESKTOP TECHNICIAN 3.5%0.0%3.5%3.0%10.0% Electrician -4.6%3.5%1.1%3.5%3.0%11.1% ELECTRICIAN 3.5%1.1%3.5%3.0%11.1% ELECTRICIAN-APPREN 3.5%1.1%3.5%3.0%11.1% ELECTRICIAN-LEAD 3.5%1.1%3.5%3.0%11.1% FACILITIES ELECT 3.5%1.1%3.5%3.0%11.1% INSTRUM ELEC 3.5%1.1%3.5%3.0%11.1% SR INSTRUM ELEC 3.5%1.1%3.5%3.0%11.1% Engineering Technician II -1.4%3.5%0.0%3.5%3.0%10.0% ENGR TECH II 3.5%0.0%3.5%3.0%10.0% ENGR TECH I 3.5%0.0%3.5%3.0%10.0% ENGR TECH III 3.5%0.0%3.5%3.0%10.0% LANDFILL TECHNICIAN 3.5%0.0%3.5%3.0%10.0% Ind Waste Investigator 4.9%3.5%0.0%3.5%3.0%10.0% IND WASTE INVTGTR 3.5%0.0%3.5%3.0%10.0% ENVIRONMENTAL SPEC 3.5%0.0%3.5%3.0%10.0% IND WASTE INSPEC 3.5%0.0%3.5%3.0%10.0% IND WASTE TECHNICIAN 3.5%0.0%3.5%3.0%10.0% SR INDUSTRIAL WASTE INVESTIGATOR 3.5%0.0%3.5%3.0%10.0% SR IND WASTE INSPECT 3.5%0.0%3.5%3.0%10.0% Equipment Operator -2.1%3.5%0.0%3.5%3.0%10.0% EQUIP OPERATOR 3.5%0.0%3.5%3.0%10.0% EQUIP OPERATOR-LEAD 3.5%0.0%3.5%3.0%10.0% PW HEAVY EQUIP OPER 5.9%3.5%0.0%3.5%3.0%15.9% PW HEAVY EQUIP OPER-L 5.9%3.5%0.0%3.5%3.0%15.9% STREET SWEEPER OP 3.5%0.0%3.5%3.0%10.0% Facilities Technician 1.3%3.5%0.0%3.5%3.0%10.0% FACILITIES MECH 3.5%0.0%3.5%3.0%10.0% FACILITIES MAINT-L 3.5%0.0%3.5%3.0%10.0% CEMENT FINISHER 3.5%0.0%3.5%3.0%10.0% CEMENT FINISHER-LEAD 3.5%0.0%3.5%3.0%10.0% FACILITIES ASST 3.5%0.0%3.5%3.0%10.0% FACILITIES CARPENTER 3.5%0.0%3.5%3.0%10.0% FACILITIES PAINTER 3.5%0.0%3.5%3.0%10.0% Library Specialist -3.3%3.5%0.0%3.5%3.0%10.0% LIBRARY SPECIALIST 3.5%0.0%3.5%3.0%10.0% LIBRARY ASSOCIATE 3.5%0.0%3.5%3.0%10.0% Lineperson Cable/Splicer -1.0%3.5%10.0%3.5%3.0%20.0% ELEC UNDG INSPEC - L 3.5%10.0%3.5%3.0%20.0% ELEC UNDGD INSPEC 3.5%10.0%3.5%3.0%20.0% ELECTRICAL EQUIPMENT TECHNICIAN 3.5%10.0%3.5%3.0%20.0% ELECTRICAL ASSISTANT 3.5%10.0%3.5%3.0%20.0% ELECTRIC HEAVY EQUIPMENT OPERATOR 5.9%3.5%4.1%3.5%3.0%20.0% LINEPER/CABLE SPL 3.5%20.0%3.5%3.0%30.0% LINEPER/CABLE SPL-L 3.5%20.0%3.5%3.0%30.0% LINEPER/CABLE SPL-T 3.5%20.0%3.5%3.0%30.0% LINEPER/CABLE SPL-TL 3.5%20.0%3.5%3.0%30.0% METER TECHNICIAN 3.5%10.0%3.5%3.0%20.0% LEAD METER TECHNICIAN 3.5%10.0%3.5%3.0%20.0% STREET LIGHT TRAFFIC SIGNAL FIBER TECHNICIAN 3.5%10.0%3.5%3.0%20.0% STREET LIGHT TRAFFIC SIGNAL FIBER TECHNICIAN-APPRENTICE 3.5%10.0%3.5%3.0%20.0% STREET LIGHT TRAFFIC SIGNAL FIBER TECHNICIAN-L 3.5%10.0%3.5%3.0%20.0% SUBSTATION ELECTRICIAN 3.5%10.0%3.5%3.0%20.0% SUBSTATION ELECTRICIAN - L 3.5%10.0%3.5%3.0%20.0% SUBSTATION ELECTRICIAN - APPRENTICE 3.5%10.0%3.5%3.0%20.0% LNPER/CBL SPL-APPREN 3.5%20.0%3.5%3.0%30.0% UTIL COMPLIANCE TECH 3.5%20.0%3.5%3.0%30.0% UTIL COMPLIANCE TECH - L 3.5%20.0%3.5%3.0%30.0% OVRH UNDERGR TROUBLEMN 3.5%20.0%3.5%3.0%30.0% UTIL SYST OPER- TRAINING 3.5%20.0%3.5%3.0%30.0% UTIL SYST OPER 3.5%20.0%3.5%3.0%30.0% Water Meter Repairer 1.7%3.5%0.0%3.5%3.0%10.0% WATER METER REPAIR 3.5%0.0%3.5%3.0%10.0% METER SHOP LEAD 3.5%0.0%3.5%3.0%10.0% WATER METER REP ASST 3.5%0.0%3.5%3.0%10.0% WTR MTR CRS CN TEC 3.5%0.0%3.5%3.0%10.0% Meter Reader -3.3%3.5%0.0%3.5%3.0%10.0% METER READER 3.5%0.0%3.5%3.0%10.0% METER READER-LEAD 3.5%0.0%3.5%3.0%10.0% Motorized Equipment Mechanic -6.0%3.5%2.5%3.5%3.0%12.5% EQUIPMENT MAINTENANCE SERVICE PERSONNEL 3.5%2.5%3.5%3.0%12.5% MOTOR EQUIP MECH I 3.5%2.5%3.5%3.0%12.5% MOTOR EQUIP MECH II 3.5%2.5%3.5%3.0%12.5% MOTOR EQUIP MECH-L 3.5%2.5%3.5%3.0%12.5% MOBILE SERVICE TECH 3.5%2.5%3.5%3.0%12.5% Park Maintenance Person -2.8%3.5%0.0%3.5%3.0%10.0% PARK MAINT PERSON 3.5%0.0%3.5%3.0%10.0% PARK MAINT - L 3.5%0.0%3.5%3.0%10.0% PARKS / GOLFCREW-LEAD 3.5%0.0%3.5%3.0%10.0% SPRINKLER SYS REPR 3.5%0.0%3.5%3.0%10.0% Park Ranger N/A 3.5%3.0%3.5%3.0%13.0% PARK RANGER 3.5%3.0%3.5%3.0%13.0% SR RANGER 3.5%3.0%3.5%3.0%13.0% Planner -1.5%3.5%0.0%3.5%3.0%10.0% PLANNER 3.5%0.0%3.5%3.0%10.0% ASSOCIATE PLANNER 3.5%0.0%3.5%3.0%10.0% SR PLANNER 3.5%0.0%3.5%3.0%10.0% CDBG COORD 3.5%0.0%3.5%3.0%10.0% BLDG/PLG TECHNICIAN 3.5%0.0%3.5%3.0%10.0% Programmer Analyst -4.4%3.5%0.9%3.5%3.0%10.9% PROG ANALYST 3.5%0.9%3.5%3.0%10.9% BUSINESS ANALYST 3.5%0.9%3.5%3.0%10.9% BUSINESS ANALYST - S 3.5%0.9%3.5%3.0%10.9% SR PROG ANALYST 3.5%0.9%3.5%3.0%10.9% GIS SPECIALIST 3.5%0.9%3.5%3.0%10.9% SCADA TECHNOLOGIST 3.5%0.9%3.5%3.0%10.9% TECHNOLOGIST 3.5%0.9%3.5%3.0%10.9% TECHNOLOGIST - S 3.5%0.9%3.5%3.0%10.9% COMM TECH 3.5%0.9%3.5%3.0%10.9% Public Safety Dispatcher II 1.7%3.5%5.0%3.5%3.0%15.0% PUB SAFETY DISP II 3.5%5.0%3.5%3.0%15.0% PUB SAFETY DISP I 3.5%5.0%3.5%3.0%15.0% PUB SAFETY DISP - L 3.5%5.0%3.5%3.0%15.0% Resource Planner -5.3%3.5%1.8%3.5%3.0%11.8% RESOURCE PLANNER 3.5%1.8%3.5%3.0%11.8% ASSOCIATE RES PLANNER 3.5%1.8%3.5%3.0%11.8% ASST RES PLANNER 3.5%1.8%3.5%3.0%11.8% UTIL MKT ANALYST 3.5%1.8%3.5%3.0%11.8% UTIL MKT ANALYST -S 3.5%1.8%3.5%3.0%11.8% SR MKT ANALYST 3.5%1.8%3.5%3.0%11.8% SR MKT ANALYST-S 3.5%1.8%3.5%3.0%11.8% UTIL RATE ANALYST 3.5%1.8%3.5%3.0%11.8% Senior Librarian -4.1%3.5%0.6%3.5%3.0%10.6% LIBRARIAN 3.5%0.6%3.5%3.0%10.6% SR LIBRARIAN 3.5%0.6%3.5%3.0%10.6% COORD LIBRARY PROG 3.5%0.6%3.5%3.0%10.6% Storekeeper -8.1%3.5%4.6%3.5%3.0%14.6% STOREKEEPER 3.5%4.6%3.5%3.0%14.6% EQUIP PARTS TECH 3.5%4.6%3.5%3.0%14.6% FLEET SVCS COORD 3.5%4.6%3.5%3.0%14.6% SR FLEET SVCS COORD 3.5%4.6%3.5%3.0%14.6% STOREKEEPER-L 3.5%4.6%3.5%3.0%14.6% Street Maint Assistant -1.6%3.5%0.0%3.5%3.0%10.0% ST MAINT ASST 3.5%0.0%3.5%3.0%10.0% TRAF CONT MAINT I 3.5%0.0%3.5%3.0%10.0% TRAF CONT MAINT II 3.5%0.0%3.5%3.0%10.0% TRAF CONT MAINT-L 3.5%0.0%3.5%3.0%10.0% Tree Trimmer/Line Clearer -2.4%3.5%0.0%3.5%3.0%10.0% TREE TRIM/LN CLR 3.5%0.0%3.5%3.0%10.0% TREE MAINT ASST 3.5%0.0%3.5%3.0%10.0% TREE MAINT SPECIALIST 3.5%0.0%3.5%3.0%10.0% TREE TRIM/LN CLR-L 3.5%0.0%3.5%3.0%10.0% TREE TRM/LN CLR ASST 3.5%0.0%3.5%3.0%10.0% Utility Locator -4.2%3.5%0.7%3.5%3.0%10.7% UTIL LOCATOR 3.5%0.7%3.5%3.0%10.7% RESTORATION LEAD 5.9%3.5%0.7%3.5%3.0%16.6% WGW HEAVY EQUIPMENT OPERATOR 5.9%3.5%0.7%3.5%3.0%16.6% CATHODIC PROTECTION TECH ASST 3.5%0.7%3.5%3.0%10.7% CATHODIC TECH 3.5%0.7%3.5%3.0%10.7% SR UTIL FIELD SVC RE 3.5%0.7%3.5%3.0%10.7% UTIL INSTALL/REP 3.5%0.7%3.5%3.0%10.7% UTIL INSTALL/REP - WELD 3.5%0.7%3.5%3.0%10.7% UTIL INSTALL/REP - WELD - L 3.5%0.7%3.5%3.0%10.7% UTIL INSTALL/REP AST 3.5%0.7%3.5%3.0%10.7% UTIL INSTALL/REP-L 3.5%0.7%3.5%3.0%10.7% FIELD SVCPERS WGW 3.5%0.7%3.5%3.0%10.7% ASSISTANT GAS MEASUREMENT AND CONTROL TECHNICIAN 3.5%0.7%3.5%3.0%10.7% GAS MEASUREMENT AND CONTROL TECHNICIAN 3.5%0.7%3.5%3.0%10.7% UTIL FLD SVCS REP 3.5%0.7%3.5%3.0%10.7% MAINT. MECHANIC-WELDING 3.5%0.7%3.5%3.0%10.7% WQC Plant Operator II 2.8%3.5%0.0%3.5%3.0%10.0% WQC PLT OPER II 3.5%0.0%3.5%3.0%10.0% WQC PLT OPER I 3.5%0.0%3.5%3.0%10.0% WQC PLT OPER TRN 3.5%0.0%3.5%3.0%10.0% SR OPERATOR WQC 3.5%0.0%3.5%3.0%10.0% SR MECH 3.5%0.0%3.5%3.0%10.0% WATER SYSTEM OPER I 3.5%0.0%3.5%3.0%10.0% WATER SYSTEM OPER II 3.5%0.0%3.5%3.0%10.0% SR WATER SYS OPER 3.5%0.0%3.5%3.0%10.0% PLANT MECH 3.5%0.0%3.5%3.0%10.0% City of Palo Alto (ID # 10267) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/22/2019 City of Palo Alto Page 1 Council Priority: Fiscal Sustainability Summary Title: 2019 Fiscal Sustainability Workplan Title: Finance Committee Recommends the City Council Approve the 2019 Workplan to Address the City Council Priority, “Fiscal Sustainability”; and Review an Update Regarding the FY 2019 Adopted Budget Referral to Identify $4 Million in General Fund Savings From: City Manager Lead Department: Administrative Services Recommendation The Finance Committee recommends that City Council approve: 1. The Workplan to address the City Council Priority of “Fiscal Sustainability” as outlined in this report; 2. To reaffirm using a 6.2 percent discount rate to the normal cost of pension in financial planning; and 3. Refer to the Finance Committee, post budget season (after May 2019), to look at ways to address the Unfunded Pension Liability portion of the Budget. Finance Committee Summary On March 19, 2019, staff brought forward a draft workplan for 2019 to address the City Council priority of “Fiscal Sustainability” for review, feedback, discussion, and ultimately a recommendation to the City Council. The Finance Committee articulated feedback on areas they would like to see additional information to better understand the specific workplan elements, most specifically requested additional detail on the new workplan items. Staff articulated that these would be brought forward separately as staff works through completing the overall workplan. Ultimately the following motion was unanimously approved by the Committee including Chair DuBois, Vice Mayor Fine, and Councilmember Cormack: MOTION: Chair DuBois moved, seconded by Vice Mayor Fine to recommend to the City Council referral of: 1. The Workplan to address the City Council Priority of “Fiscal Sustainability” for City Council approval; City of Palo Alto Page 2 2. To reaffirm finding a 6.2 percent discount rate; and 3. For the Finance Committee to have authority to look at ways to address the Unfunded Pension Liability portion of the Budget, post Budget Season (after May, 2019) The Full Finance Committee materials reviewed on March 19, 2019 can be found in the links below: City Manager Report #10179: http://cityofpaloalto.org/civicax/filebank/documents/69883 Action Minutes: https://cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=69909.34&BlobID=70164 Minutes: https://cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=69909.36&BlobID=70165 Presentation (beginning on PDF page 58): https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=45540.74&BlobID=70019 Background As part of the adoption of the Fiscal Year (FY) 2019 Budget, the City Council directed staff to: Return to the Finance Committee with a work plan and timeline to discuss the $4 million in structural reductions in the General Fund and the impacts of the reduction in expenses when the City Council returns from break, including a discussion of optimizing library hours. Also include discussion regarding the implications of closing the pension gap, at a commensurate 50% level to the General Fund, accounting for rising costs in non-general funds, specifically Enterprise and Other Funds. Staff developed two plans to address this referral: 1) “immediate action” and 2) “strategic action.” Ultimately, the Finance Committee and City Council approved the report and directed staff to complete both workplans. The Finance Committee and City Council completed the immediate action item in December 2018 with the approval of budget adjustments to the FY 2019 budget (CMR 9925). This action included the approval of an additional $4 million contribution to the City’s IRS section 115 irrevocable pension trust fund. This report provides a brief update on the status of the second longer term plan for strategic action. Subsequent to this referral and the approval of the plans to address it, the City Council met on February 2, 2019 for their annual retreat. Here the City Council adopted four (4) priorities for calendar year 2019 including “Fiscal Sustainability”. City of Palo Alto Page 3 Discussion For the purpose of developing this workplan, staff has attempted to encapsulate what the Council means by the term fiscal sustainability. “Fiscal Sustainability” is the ability of a government agency to provide ongoing services while maintaining its finances at a credible and serviceable position with a long-term balance of resources and the cost of doing business. In order to accomplish this, governments adopt budgets and implement expense controls, while engaging in continual strategic forecasting of future revenues and liabilities, environmental factors, and socio-economic trends in order to adapt financial planning accordingly. The goal of this workplan is to continue to make proactive progress towards fiscal sustainability for the City of Palo Alto in order to maintain the quality of life that the City of Palo Alto supports through its services. Engaging the public and fostering discussion on the City's current and projected financial status are elements of this, as is identifying strategies for the City Council to consider. In order to achieve fiscal sustainability, the ecosystem that supports a government agency must be understood and evaluated in totality. The day to day financial management of the organization is equally as important as the services provided by the City’s workforce and the local (and broader) economy that is impacting City revenues and expenditures. It is only by achieving a sound equilibrium balancing our resources, services, and costs, that fiscal sustainability can be achieved. The diagram below depicts this ecosystem: Staff has identified several initiatives for prioritization because of their propensity to enhance one or more sides of this ecosystem; they may: expand or improve services to the Palo Alto community, increase or leverage resources, or reduce or mitigate costs. The proposed Fiscal Sustainability Workplan for 2019 organizes these initiatives into three categories: 1) activities previously approved or directed by the City Council and currently resourced, 2) activities approved or directed by the City Council but not yet resourced, and 3) newly proposed or potential activities not yet resourced. Overall, the workplan represents a variety of initiatives intended to improve the City’s fiscal sustainability position. They reflect a range of policy actions, process improvements, and service model shifts that could: reduce costs, mitigate future increases in cost, add resources, or more effectively use existing resources, while maintaining services to the public. It should be noted, however, that in pursuing this workplan a near term analogy applies. In order for staff to maintain a balanced ecosystem, the completion of activities during 2019 that have not yet been resourced would require a reallocation of resources; most notably a finite City of Palo Alto Page 4 resource, staff time. This is likely to result in a reduction of resources – and an associated reduction in service – to other programs, initiatives, and competing demands. DRAFT FISCAL SUSTAINABILITY WORKPLAN: Previously approved or directed by the City Council and currently resourced: these are fiscal sustainability initiatives or activities that are currently directed by the City Council and have funding or staffing resources identified for completion. A. Annual 5+ year financial planning through reports such as General Fund Long Range Financial Report (Nov/Dec); Utility Financial Forecast and Rate Proposal (March – May); and the FY 2020-2024 Capital Improvement Budget (May/June) B. Annual budget process resulting in balanced adopted operating and capital budgets C. Review and confirmation of funding for the City Council approved 2014 infrastructure plan D. Continued implementation of the Infrastructure Blue Ribbon Commission (IBRC) recommendations to catch-up and keep-up with infrastructure maintenance needs and additional operating and maintenance implications of new capital projects and facilities coming online E. Focused labor relations with represented and management employee groups closing contracts expeditiously and cost effectively F. Services Portfolio/Inventory (discussed below) including stakeholder engagement and education G. Targeted support for Downtown and California Ave. business districts Approved or directed by the City Council but not yet resourced: these are fiscal sustainability initiatives or activities that are currently directed by the City Council, however, they do not yet have funding or staffing resources identified for completion. H. Pension policy I. Improvement of code enforcement, 311 system, and customer relationship management activities J. Parking management Newly proposed or potential activities proposed to be completed: these are new activities staff recommends undertaking as part of this 2019 workplan. K. Draft a formal budget development policy to guide annual financial planning and allocation of resources L. Develop proposals to address recruitment and retention challenges M. Analysis of revenue generating options N. Develop a plan for a business tax proposal, including reform of the business registry through implementation of a business license program. City of Palo Alto Page 5 Strategic Action Update: Services Portfolio/Inventory In November 2018, staff embarked on the strategic action alongside the City Council’s immediate action in response to the City Council referral discussed above, identification of additional funding for payment of pension liabilities. Using the FY 2019 Adopted Budget, over 120 programs have been identified across the City, allocating over 1,000 full-time positions and nearly 1,150 total positions when including part-time staffing. Over the past few months, staff throughout the City have engaged in documenting an inventory of services and programs across departments, using a common set of terms to describe the wide range of services and programs currently provided by the City. This has informally been referred to as our “services portfolio”. Staff has gathered the following information about each service and intends to review an example with the committee at the March 19th meeting: - a brief description, - quantitative identification of revenues, expenses, and staffing allocated, - notes about resources managed or leveraged such as volunteer hours, grants, etc., - the return on investment or the outcome delivered by these resources, and - identification of mandates such as state, Federal, or municipal code requirements. In addition, staff is examining enterprise initiatives across all services. The completed body of work is intended to be presented to the Finance Committee as part of the Fiscal Sustainability workplan (discussed above) and it is anticipated that the information will be used as a tool to begin outreach and education on both the resources and the costs of business that support the delivery of services to the community. Resource Impact Both staff and non-salary resources, such as consultants and the procurement of tools, will be necessary to complete this workplan. To complete the workplan and balance against other activities, a deliberate and judicious deployment of resources will be necessary. As portions of this workplan are developed more fully, resource needs will be identified at that time for the specific project. Policy Implications This recommendation aligns with existing City policy and City Council direction. Environmental Review This report is not a project for the purposes of the California Environmental Quality Act (CEQA). Environmental review is not required. CITY OF PALO ALTO OFFICE OF THE CITY CLERK April 22, 2019 The Honorable City Council Palo Alto, California SECOND READING: Adoption of an Ordinance of the Council of the City of Palo Alto Amending the Setback Map of the City of Palo Alto to Eliminate the 50-Foot Special Setback Along Hansen Way for 3200 El Camino Real (FIRST READING: April 1, 2019 PASSED: 7-0) This Ordinance was first heard by the Council on April 1, 2019, where it passed 7-0. The final motion is listed below. PUBLIC HEARING/QUASI-JUDICIAL: 3200 El Camino Real [17PLN-00156]: Consideration of an Applicant’s Request to Adopt an Ordinance Amending the Setback Map to Eliminate the 50-foot Special Setback for the Subject Property Adjacent to Hansen Way; and Consideration of a Request for Approval of an Architectural Review Board Application Allowing the Demolition of the Existing Building and Construction of a new 99-Guestroom Hotel Development. The Request Also Includes a Reduction in Parking to be Off-set by Valet Parking. Environmental Assessment: An Initial Study/Mitigated Negative Declaration was Circulated for Public Comment From December 4, 2018 to January 3, 2019. The Planning and Transportation Commission Recommended Adoption of the Applicant’s Proposed Map Amendment on December 12, 2018. Zoning District: Service Commercial (CS). MOTION: Council Member DuBois moved, seconded by Council Member Kou to: A. Adopt the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program as set forth in the Record of Land Use Action; B. Introduce an Ordinance amending the Setback Map to eliminate the special setback for the subject property including recommended restrictions made by the Planning and Transportation Commission; Page 2 C. Adopt the Record of Land Use Action approving the Architectural Review, based on findings and subject to conditions of approval as recommended by the Architectural Review Board with the added conditions: i. Standard condition for Transportation Demand Management (TDM) program and reporting; ii. Condition for participation in the Palo Alto Transportation Management Association (TMA); and D. Maintain the right turn lane in an appropriate design as determined by Staff AMENDMENT: Vice Mayor Fine moved seconded by Council Member Kniss to remove Motion Part D. AMENDMENT WITHDRAWN BY THE MAKER MOTION SPLIT FOR THE PURPOSE OF VOTING INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to amend the Motion Part D to state “…capacity in an appropriate design as determined by Staff working with Caltrans.” MOTION TO BE VOTED ON AS WHOLE MOTION AS AMENDED RESTATED: Council Member DuBois moved, seconded by Council Member Kou to: A. Adopt the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program as set forth in the Record of Land Use Action; B. Introduce an Ordinance amending the Setback Map to eliminate the special setback for the subject property including recommended restrictions made by the Planning and Transportation Commission; C. Adopt the Record of Land Use Action approving the Architectural Review, based on findings and subject to conditions of approval as recommended by the Architectural Review Board with the added conditions: Page 3 i. Standard condition for Transportation Demand Management (TDM) program and reporting; ii. Condition for participation in the Palo Alto Transportation Management Association (TMA); and D. Maintain the right turn capacity in an appropriate design as determined by Staff working with CalTrans. MOTION AS AMENDED PASSED: 7-0 ATTACHMENTS: • Attachment A: Parmani Ordinance (PDF) Department Head: Beth Minor, City Clerk Page 4 Page 1 of 5 Ordinance No.___ Ordinance of the Council of the City of Palo Alto Amending the Setback Map of the City of Palo Alto to Eliminate the 50-Foot Special Setback Along Hansen Way for 3200 El Camino Real. The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. The City Council finds as follows: (A) The Planning and Transportation Commission ("Commission"), after a duly noticed public hearing on December 12, 2018, has recommended that the City Council of the City of Palo Alto ("Council") eliminate the 50-foot special setback along Hansen Way for the subject site (3200 El Camino Real, Exhibit 1 and 2). (B) The Planning and Transportation Commission has reviewed the facts presented at the public hearing, including public testimony and reports and recommendations from the director of planning and community environment or other appropriate city staff. (C) The Planning and Transportation Commission finds that the subject site is within the CS Service Commercial boundary. (D) The Planning and Transportation Commission finds that the elimination of the 50- foot special setback for the subject parcel is in accord with the Palo Alto Comprehensive Plan, in that the Comprehensive Plan designation of the site is CS Service Commercial and that the elimination of the special setback does not cause the site or its proposed development to be inconsistent with the Comprehensive Plan or South El Camino Real Design Guidelines. The project is consistent with the following Comprehensive Goals and Policies: • GOAL L-1: A compact and resilient city providing residents and visitors with attractive neighborhoods, work places, shopping districts, public facilities and open spaces. • Policy L-1.3: Infill development in the urban service area should be compatible with its surroundings and the overall scale and character of the city to ensure a compact, efficient development pattern. • GOAL L-4: Inviting pedestrian scale centers that offer a variety of retail and commercial services and provide focal points and community gathering places for the city’s residential neighborhoods and employment districts. • Policy L-4.3: Encourage street frontages that contribute to retail vitality in all Centers. Reinforce street corners in a way that enhances the pedestrian realm or that form corner plazas. Include trees and landscaping. • Policy L-4.6: Sites within or adjacent to existing commercial areas and corridors are suitable for hotels. Give preference to housing versus hotel use on sites adjacent to predominantly single-family neighborhoods. Page 2 of 5 • Policy L-4.15: Recognize El Camino Real as both a local serving and regional serving corridor, defined by a mix of commercial uses and housing. (E) The Council held a duly noticed public hearing on the matter on April 1, 2019, and has reviewed the Mitigated Negative Declaration prepared for the project and all other relevant information, including staff reports, and all testimony, written and oral, presented on the matter. SECTION 2. The Council finds that the public interest, health and welfare require an amendment to the Setback Map of the City of Palo Alto (PAMC section 20.08.020) as set forth in Section 3. SECTION 3. The Council hereby amends the Setback Map of the City of Palo Alto (PAMC section 20.08.020) to eliminate the 50-foot Special Setback for the subject site (3200 El Camino Real) (Exhibit 1) for Mixed-Use and Hotel uses. The 50-foot Special Setback shall remain for all other land uses. SECTION 4. To the extent permitted by law, the applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the '"indemnified parties) against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack. set aside or void, any pern1it or approval authorized hereby for the Project. including (without limitation) reimbursing the City its actual attorney’s fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. SECTION 5. The Council hereby finds that this setback map amendment is subject to environmental review under the provisions of the California Environmental Quality Act (CEQA). An environmental assessment and mitigated negative declaration was prepared for the project and it has been determined that all potentially adverse impacts that would result from the setback map amendment can be mitigated to a level of insignificance; therefore, the project would have no significant impact on the environment. SECTION 6. This ordinance shall be effective upon the thirty-first (31st) day after its passage and adoption. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: ______________________________ __________________________ Page 3 of 5 City Clerk Mayor APPROVED AS TO FORM: __________________________ City Manager _______________________________ Deputy City Attorney ___________________________ Director of Planning and Community Environment CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY April 22, 2019 The Honorable City Council Palo Alto, California SECOND READING: Adoption of an Ordinance Amending Section 18.18.120 (Grandfathered Uses and Facilities) of the Palo Alto Municipal Code to Adjust Regulations Pertaining to Noncomplying Facilities. California Environmental Quality Act (CEQA): This Ordinance is Within the Scope of the Comprehensive Plan. Environmental Impact Report (EIR) certified and adopted on November 13, 2017 by Council Resolution No. 9720; the Ordinance is Also Exempt From Environmental Review Under CEQA Guidelines Sections 15061(b)(3) and 15305. (FIRST READING: April 1, 2019 PASSED: 6-1 Kou no) This Ordinance was first heard by the Council on April 1, 2019 and approved with two amendments. The adopted motion with the amendments is below. It is now before you for the second reading. MOTION AS AMENDED RESTATED: Vice Mayor Fine moved, seconded by Council Member Kniss to adopt on first reading an Ordinance amending Section 18.18.120 of the Palo Alto Municipal Code to allow non-complying (grandfathered) facilities in the Commercial Downtown zoning district to convert an existing use to another permitted use, except for a conversion from residential uses to non-residential uses, including the following changes: A. Amend the Ordinance Section 18.18.120 b. 2. F. to state “…shall not be converted to a non- residential land use or reduced in gross floor area or number of units.” B. Amend the Ordinance Section 18.18.120 b. 2. F to state “…shall submit a statement of its position with all claims and all supporting documentary evidence at the time…” MOTION AS AMENDEDE PASSED: 6-1 Kou no ATTACHMENTS: •Attachment A: 2019-04-01 ORD Amending PAMC Section 18.18.120 (CD-C - Grandfathered Uses and Facilities) (PDF) Department Head: Molly Stump, City Attorney Page 2 20190410 ay 0160012 Amending ORD 18.18 (DC) District 1 ** NOT YET ADOPTED ** Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Amending Section 18.18.120 (Grandfathered Uses and Facilities) of Chapter 18.18 (Downtown Commercial District) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to Adjust Regulations Relating to Noncomplying Facilities. 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. Section 18.18.120 of the Palo Alto Municipal Code governs permissible noncomplying uses and facilities in the Downtown Commercial zone district. B. In 2016, the provisions of Section 18.18.120 governing noncomplying facilities seeking to remodel, improve, or replace site improvements were updated to: 1) allow minor modifications to building envelope through Architectural Review; and 2) require that such facilities maintain continual use and occupancy for the same use. C. The requirement that noncomplying facilities maintain continual use and occupancy for the same use has resulted in potentially unintended consequences, including the inability to change among similar permitted and conditionally permitted uses in noncomplying facilities, such as a change from eating and drinking services to retail uses. SECTION 2. Section 18.18.120 (Grandfathered Uses and Facilities) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) is hereby amended to read as follows: 18.18.120 Non-complying (Grandfathered) Uses and Facilities (a) Non-complying (Grandfathered) Uses (1) The following uses and facilities may remain as legal noncomplying (grandfathered) uses, and shall not require a conditional use permit or be subject to the provisions of Chapter 18.70: (A) Any use which was being conducted on August 28, 1986; or (B) A use not being conducted on August 28, 1986, if the use was temporarily discontinued due to a vacancy of 6 months or less before August 28, 1986; or (C) Any office use existing on April 16, 1990 on a property zoned CD and GF combining, which also existed as a lawful conforming use prior to August 28, 1986, notwithstanding any intervening conforming use. (2) The legal noncomplying grandfathered uses in subsection (1) shall be permitted to remodel, improve, or replace site improvements on the same site, for continual use 20190410 ay 0160012 Amending ORD 18.18 (DC) District 2 and occupancy by the same use, provided such remodeling, improvement, or replacement complies with all of the following: (A) shall not result in increased floor area; (B) shall not relocate below grade floor area to above grade portions of the building; (C) shall not result in an increase of the height, length, building envelope, building footprint or any other increase in the size of the improvement. For purposes of this section, “building envelope” shall mean the three dimensional shape and size occupied by an existing building. It is not the maximum, buildable potential of the site; (D) shall not increase the degree of noncompliance, except pursuant to the exceptions to floor area ratio regulations set forth in Section 18.18.070; or (E) in the case of medical, professional, general business or administrative office uses of a size exceeding 5,000 square feet in the CD-S or CD-N district that are deemed legal noncomplying grandfathered pursuant to subsection (1), such remodeling, improvement, or replacement shall not result in increased floor area devoted to such office uses. (F) The Director may approve minor changes to the building’s footprint, height, length, and the building envelope through Architectural Review of minor aesthetic architectural improvements and to improve pedestrian-orientation provided there is no increase to the degree of any non-complying feature. (3) If a legal noncomplying grandfathered use deemed existing pursuant to subsection (1) ceases and thereafter remains discontinued for 12 consecutive months, it shall be considered abandoned and may be replaced only by a conforming use. (4) A use deemed legal noncomplying grandfathered pursuant to subsection (1) which is changed to or replaced by a conforming use shall not be reestablished, and any portion of a site or any portion of a building, the use of which changes from a legal noncomplying grandfathered use to a conforming use, shall not thereafter be used except to accommodate a conforming use. (b) Non-complying (Grandfathered) Facilities (1) Any noncomplying (grandfathered) facility existing on August 28, 1986 and which, when built, was a complying facility, may remain as a legal noncomplying grandfathered facility and shall not be subject to the provisions of Chapter 18.70. (2) The legal noncomplying grandfathered facilities in subsection (1) shall be permitted to remodel, improve, or replace site improvements on the same site for continual use and occupancy, by the same use, provided such remodeling, improvement, or replacement complies with all of the following: (A) shall not result in increased floor area; (B) shall not relocate below grade floor area to above grade portions of the building; (C) shall not result in an increase of the height, length, building envelope, building footprint, or any other increase in the size of the improvement; (D) shall not increase the degree of noncompliance, except pursuant to the exceptions to floor area ratio regulations set forth in Section 18.18.070; 20190410 ay 0160012 Amending ORD 18.18 (DC) District 3 (E) The Director may approve minor changes to the building’s footprint, height, length, and the building envelope through Architectural Review of minor aesthetic architectural improvements and to improve pedestrian-orientation provided there is no increase to the degree of any non-complying feature. (F) The residential portion of any legal noncomplying facility shall not be converted to a non-residential land use or reduced in gross floor area or number of units. An applicant asserting that the operation of this subsection (F) is preempted by state or federal law shall submit a statement of its position with all claims and all supporting documentary evidence at the time it applies for a change of use. The City Council shall hold at least one noticed public hearing in accordance with the procedures set forth in PAMC 18.77.080 to consider whether to waive or adjust the requirements of one or more provisions of Titles 18 or 21. The City Council may seek additional information including, without limitation, third party peer review paid for at the applicant’s expense. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Council finds that the Ordinance is within the scope of and in furtherance of the Comprehensive Plan 2030 which was evaluated in that certain Final Environmental Impact Report (“Final EIR”) certified and for which findings were adopted by Council Resolution Nos. 9720 and 9721 on November 13, 2017, all in accordance with the California Environmental Quality Act (“CEQA”). Pursuant to Section 15168 of the State CEQA Guidelines, the City has determined that no new effects would occur from and no new mitigation measures would be required for the adoption of this Ordinance. The Council further and alternatively finds, that even if this Ordinance were not within the scope of the Comprehensive Plan 2030, it would be exempt from environmental review under Sections 15061(b)(3) and 15305 of the State CEQA Guidelines. / / / / / / / / / / 20190410 ay 0160012 Amending ORD 18.18 (DC) District 4 SECTION 5. This Ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Deputy City Attorney City Manager ____________________________ Director of Planning & Community Environment City of Palo Alto (ID # 9531) City Council Staff Report Report Type: Action Items Meeting Date: 4/22/2019 City of Palo Alto Page 1 Summary Title: Transportation Impact Fee Nexus Study and Fee Adoption Title: PUBLIC HEARING: Adoption of an Ordinance Amending Title 16 of the Palo Alto Municipal Code to Modify and Increase the Citywide Transportation Impact Fee (Chapter 16.59) and Suspend Application of the Existing Area- Specific Transportation Impact Fees for the Stanford Research Park/El Camino Real CS Zone (Chapter 16.45) and the San Antonio/West Bayshore Area (Chapter 16.46), and Amending the Municipal Fee Schedule to Update the City’s Transportation Impact Fees in Accordance With These Changes, all in Furtherance of Implementation of the Comprehensive Plan. The Citywide Transportation Impact Fee is a one-Time fee on new Development and Redevelopment Throughout Palo Alto to Fund Transportation Improvements to Accommodate and Mitigate the Impacts of Future Development in the City. This Ordinance is Within the Scope of the Comprehensive Plan Environmental Impact Report (EIR) Certified and Adopted on November 13, 2017 by Council Resolution No. 9720 From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the City Council conduct a public hearing and take the following actions: 1. Find the attached ordinance (Attachment A) to be within the scope of the Comprehensive Plan Environmental Impact Report (EIR) certified and adopted on November 13, 2017 by Council Resolution No. 9720. 2. Accept the Transportation Impact Fee Nexus Study (Attachment B) and adopt the attached ordinance (Attachment A) modifying and increasing the Citywide Transportation Impact Fee, suspending collection of two area-specific transportation impact fees and amending the FY 2019 Municipal Fee Schedule. City of Palo Alto Page 2 Executive Summary The City currently assesses a transportation impact fee on new development. Citywide fees, as well as geographically-specific fees, are collected to offset a project’s impact to traffic congestion and need for capital improvements. State law provides that cities may assess transportation impact fees, but these fees must be updated from time to time based on a nexus study that shows the fee is reasonably associated with the identified need. The last time the City updated its nexus study was in 2007, and the Citywide impact fee has been adjusted for inflation since then. The recently adopted Comprehensive Plan includes a program that requires the City to explore modifications to the transportation impact fee program and to prepare a new nexus study. This new study is now complete, and the attached ordinance implements changes to the transportation impact fee program by 1) updating the fees based on reasonably anticipated capital projects, and 2) eliminates or phases out all but one of the geographically- based fees in favor of a single citywide fee. Implementation of this ordinance would more than slightly double the fee over what is currently collected, but accounts for reductions in the total amount collected for some projects located in certain parts of the City that include measures to reduce vehicular trips in accordance with the Comprehensive Plan’s policy on required trip reductions. The recently adopted Comprehensive Plan (Comp Plan) calls for an update to the City’s transportation impact fee program. The nexus study provides the information required to accomplish this task. Specifically, the nexus study reviews the City’s current traffic impact fees, projected development during the life of the Comp Plan (i.e. by 2030), and anticipated capital improvements that will be needed during the same timeframe. On July 30, 2018, subsequent to the adoption of the Comp Plan in 2017, the City Council reduced the total allowed cap on office and R&D square footage from 1.7 million to 850,000. The nexus study was updated to reflect the new lower cap, utilizing the same forecasting model. The Council Reduced Preferred Scenario would generate fewer PM peak hour trips than the original scenario, but would still result in impacts. Based on this information, the study recommends increasing the citywide transportation impact fee charged to new development based on the number of peak hour vehicle trips that are anticipated after implementation of enforceable transportation demand management (TDM) plans. The recommended fee is $7,886 per net new peak hour trip, which is more than double the current citywide fee, but the study endorses a reduction of the fee to be incurred by retail projects. At the same time, the study also recommends elimination of two area-specific transportation impact fees that are charged in the San Antonio and Stanford Research Park areas. Operationally, adoption of the ordinance will mean that most new development will be subject to one transportation impact fee, rather than multiple fees, and that fee will be reduced to City of Palo Alto Page 3 reflect direct investments in trip reduction via TDM plans. For example, the new requirement for TDM plans in the California Avenue Area in Comprehensive Plan Program T1.2.2 (and EIR mitigation measure Trans 1a) is to achieve a 35% reduction below motor-vehicle trip- generation rates established by the Institute of Traffic Engineers (ITE). Therefore, new development will have to provide an enforceable plan to meet this requirement and pay a fee of $7,886 for each remaining PM peak hour trip that is not reduced beyond the TDM plan reduction, which may be more than 35%. The Finance Committee reviewed the Draft Transportation Impact Fee Nexus Study on February 6, 2018 and recommended preparation and adoption of an ordinance with the components included in the attached draft ordinance. Action minutes of the Finance Committee meeting are here: https://www.cityofpaloalto.org/civicax/filebank/documents/63672. Based on input from the Finance Committee, the ordinance in Attachment A would not only increase the citywide fee on a per-trip basis, referencing the quantitative TDM goals in the Comprehensive Plan and transitioning away from area-specific fees, but would also reduce the types of projects that would be exempt from the payment of the updated impact fee. The ordinance also references the TDM plan requirements included in Comprehensive Plan Program T1.2.2. Staff will be bringing forward a separate ordinance to codify these requirements in Title 18 (the Zoning Code). See the Next Steps section below for more explanation. Finally, the ordinance specifies that retail uses should be charged half the new fee. Background & Discussion Impact fees are established based on the reasonable relationship (i.e. nexus) between the impacts caused by new development and the improvements to mitigate those impacts that will be funded by the fee. Existing Transportation Impact Fees As shown in Table 1 below, the City currently charges one or more transportation impact fees for new development based on location. Exemptions are provided for the following uses: single family home remodels or additions; 100% affordable housing projects; below market rate housing units provided in excess of the number required by ordinance; public buildings and schools; retail, personal service, or automotive service uses that are 1,500 sq. ft. or smaller; daycare, nursery schools and preschools, on-site cafeteria/recreation/child care for employees only; and hazardous materials storage. (See Table 3.) All existing transportation impact fees were adopted some time ago and have generated funding for transportation improvements over the years. The amount generated annually depends on the amount and location of development approved. Please see the summary in Attachment B for more information. City of Palo Alto Page 4 Table 1. Summary of Existing Transportation Impact Fees in Palo Alto Area Date Established Current Fee Amount (1) Approximate Funds Generated (2)(5) Citywide 2007 $3,700.00 per PM peak hour trip $5 million San Antonio/West Bayshore 1986 $2.65/ft(3) $0.3 million Stanford Research Park/ El Camino Real CS Zone 1989 $12.85/ft(3) $4.5 million Charleston – Arastradero Corridor Pedestrian and Bicycle Safety 2005 $0.40/ft $1,351/du (4) $1 million (1) FY2019 Municipal Fee Schedule (2) Administrative Services Department, amounts are total fees paid from inception (3) Residential uses are exempt (4) Commercial development is charged per square foot; residential development is charged per unit. (5) Fund balances shown in Attachment B include accrued interest and investment income Source: Planning & Community Environment, April 2019 With the proposed ordinance, the City would cease collecting the San Antonio/West Bayshore area-specific fee. Most of the development anticipated in the San Antonio/West Bayshore area at the time the fee was established in 1986 has occurred, and while not all of the original projects envisioned for funding have been pursued by the City, remaining funds will be programmed for alternative improvements in the area, subject to a nexus analysis/finding and City Council approval. With the proposed ordinance, the City would also cease collecting the Stanford Research Park/El Camino Real CS Zone fee established in 1989. Two of the projects envisioned for funding have been completed and two are funded and in process. The proposed ordinance would leave in place the Charleston-Arastradero Corridor fee established in 2005 because the proposed improvements have not been fully funded and are not completed yet. Comprehensive Plan Changes The Comprehensive Plan, adopted in November 2017, includes an implementation program City of Palo Alto Page 5 (Program T1.2.2) calling for a formal process for adopting and monitoring transportation demand management (TDM) plans for new developments and to pay a transportation impact fee (TIF) “for all those peak hour motor vehicle trips that cannot be reduced via TDM measures.” Consistent with State law, the plan anticipated that all impact fees collected would be used for capital improvements aimed at reducing motor vehicle trips and traffic congestion. Comprehensive Plan Program T1.25.1 reiterated that “Modifications to the impact fee program should be structured in keeping with the City’s desire to require new development to reduce peak-hour motor vehicle trips to the extent feasible through TDM plans and by contributions to the provision of transit services, shuttles, carpool/rideshare incentives, and similar programs.” Over the life of the Comprehensive Plan (i.e. to 2030), the Final Environmental Impact Report (EIR), certified on November 13, 2017, anticipated development of 3,545 to 4,420 new dwelling units, and 9,850 to 11,500 new jobs (including jobs associated with the Stanford University Medical Center). On July 30, 2018, the City Council adopted by ordinance a citizen initiative measure amending the Comprehensive Plan to reduce the Comprehensive Plan (Preferred Scenario) cap on Office/R&D development by half, from 1.7 million square feet to 850,000 square feet. The nexus study reflects the lower Office/R&D limit. The Council-Reduced Preferred Scenario’s projections of housing and employment through the horizon year of 2030 maintains the number of dwelling units as the original Preferred Scenario but lowers the estimate of new jobs to 7,321. These assumptions form the basis for the transportation impact fee calculations in Attachment B, which anticipates exempt projects and jobs generated within existing building space.1 Nexus Study Methodology State law requires agencies to identify a reasonable relationship between an impact fee and new development, and to make findings regarding (a) the purpose of the fee; (b) what mitigation projects the fee will be used to fund; (c) the nexus between the needed mitigation projects and the type of development that will be charged a fee; and (d) the nexus between the amount of the fee and the cost of the needed mitigation. The study in Attachment B is designed to support these findings and is structured as shown below: Table 2. Summary of Nexus Study Methodology Step 1 Project Future Growth by 2030 (based on the Comprehensive Plan Update Final EIR and updated to reflect 1 State law allows the City to charge transportation impact fees to new development based on that development’s proportional “fair-share” contribution to the impact and required remedy (improvement). The City would need to fund or identify other funding for the portion attributable to vehicle trips from exempt projects as well as existing development. City of Palo Alto Page 6 recent amendments related to office / research and development limits) Step 2 Estimate Total & Net New PM Peak Hour Vehicle Trips (based on the Comprehensive Plan Update Final EIR, the 2,185 net new PM Peak Hour trips represent 4.4% of the total PM Peak Hour trips) Step 3 Identify Impacts or Deficiencies Caused by the Additional Trips (based on the Comprehensive Plan Update Final EIR) Step 4 & 5 Identify Projects that Would Mitigate Impacts or Deficiencies and their Cost (See List of Capital Improvements, Attachment B, Table 8.) Step 6 Calculate the Base Fee to be Charged Per PM Vehicle Trip (4.4% of total costs = $17,230,400; divided by 2,185 trips = $7, 886) Source: Planning & Community Environment, April 2019 Similar to existing Citywide transportation impact fees, the new fees would be applied to projects based on the net new PM Peak hour trips that would be generated, which are calculated by applying trip generation rates provided in the ITE Manual to the proposed land use(s).2 The impact fees are based on PM peak-hour trips because the PM peak-hour is typically more congested than the AM peak-hour and a trip-based fee provides a closer nexus than a per-square-foot fee between the transportation impacts caused by new development and the amount that a given project is required to pay. Proposed Fee Exemptions With the proposed ordinance, a few selected uses would be exempted as shown in Table 3 below. Some currently exempt uses would no longer be exempt under the proposed ordinance, unless such projects have a final planning approval prior to the effective date of the ordinance. Table 3. List of Exemptions: Existing & Proposed Existing Exemptions Proposed Exemptions Single family home remodels or additions Single family home remodels or additions (1) 100% affordable housing projects 100% affordable housing projects (2) Below market rate housing units provided in excess of the number required by ordinance Below market rate housing units (2) Junior accessory dwelling units and certain accessory dwelling units established by garage/carport conversion Junior accessory dwelling units and certain accessory dwelling units established by garage/carport conversion(3) Public buildings and schools 2 The ITE Manual is professional guidance provided by the Institute of Transportation Engineers. City of Palo Alto Page 7 Existing Exemptions Proposed Exemptions Retail, personal service, or automotive service uses that are 1,500 sq. ft. or smaller 50% of new retail trips (4) Daycare, nursery schools and preschools Daycare uses (5) On-site cafeteria/recreation/child care for employees only Hazardous materials storage Notes: (1) While not recommended as an exemption by the Finance Committee, this existing exemption would be perpetuated by the proposed ordinance, which would charge a fee only when the proposed project would increase the number of PM Peak Hour trips. Single family home remodels and additions are not considered trip generating unless the result is a net new dwelling unit. (2) Exemption as described in the Comprehensive Plan Housing Element (page 113). (3) Exemption per Council action on December 17, 2018 for Ordinance 5456. All other ADUs are considered second units and subject to the TIF. (4) The Finance Committee recommended applying the fee to 50% of new retail trips in recognition of the desire for retail and the high rate of trip generation. (5) The Finance Committee recommended exempting daycare, but not other uses listed here. Source: Planning & Community Environment, April 2019 The exemptions in Table 3 and the attached ordinance reflect the recommendation of the Finance Committee except where noted above. Staff requests careful consideration of the Finance Committee recommendation to modify the list of existing exemptions. The existing exemptions currently apply consistently to all of the City’s impact fees3 and modifying them as recommended would increase the cost of City projects. TDM Plan Requirements The proposed ordinance requires fees that would be based on the number of PM Peak Hour trips after a percent reduction based on the location of the project and the applicable TDM requirement (if any), as shown in Table 4. TDM programs would not be required if a project would generate less than 50 PM peak hour trips. 3 The only exception is the exemption provided to Accessory Dwelling Units for housing impact fees. City of Palo Alto Page 8 Table 4. TDM Requirements District % Trip Reduction Required (1) Downtown 45% California Avenue Area 35% Stanford Research Park 30% El Camino Real Corridor 30% Remainder of the City 20% Note: (1) Comprehensive Plan Program T1.2.2 Source: Planning & Community Environment, April 2019 The Comprehensive Plan includes a program about formalizing the City’s TDM requirements by ordinance, requiring new developments above a certain size threshold to prepare and implement TDM plans to meet the performance standards in Table 4 above (Program T1.2.2). The program references the need for regular monitoring/reporting and enforcement with meaningful penalties for non-compliance. Recent changes to the Palo Alto Municipal Code established clearer criteria for when TDM plans are required in the entitlement process and staff have operationalized the review, approval, filing, and monitoring of TDM plans, which will enable enforcement of performance goals and the issuance of fines for non-compliance. The relevant code sections adopted in 2017 are included as Attachment C and an ordinance to be considered by Council in the future would reference the performance targets from the Comprehensive Plan. PAMC Section 19.52.030 includes a requirement for regular monitoring report two years after building occupancy and every year thereafter. The report must include an assessment of the effectiveness of the measures and modifications if the program is not performing as expected. If performance measures are not met, the Planning Director may require additional modifications and impose administrative fines. (As explained in the Next Steps section below, staff is developing a separate ordinance to codify those requirements in the Municipal Code). Examples With & Without the New Fees With the proposed ordinance, the City would increase the current Citywide traffic impact fee, cease collection of two area-specific fees, and reduce the number of exemptions. The end result would be an increase in fees charged to many, but not all projects, since some areas of the City are currently charged multiple fees and would now be charged only one. Several examples are provided in Table 5 below. Table 5. Existing & Proposed Transportation Impact Fees (TIF), Examples Location Land Use PM Peak Hour Existing TIF Proposed TIF City of Palo Alto Page 9 Trips (Based on TDM Trip Reduction) California Ave 50,000 sq.ft. Office 75 prior to TDM 49 with TDM $175,175 $386,414(1) Downtown 50,000 sq. ft. Office 75 prior to TDM 38 with TDM $135,850 $299,668(2) Stanford Research Park 200,000 sq. ft. Office replacing 100,000 sq. ft. R&D 298 prior to TDM 209 with TDM 102 after subtracting existing trips $1,606,650 (citywide fee plus Stanford Research Park fee) $804,372 (3) El Camino Corridor (outside disrict-specific TIF areas) 80 Units of Market Rate Multifamily Housing 50 prior to TDM 35 with TDM $125,125 $276,010(3) Notes: (1) Requires investment in TDM to reduce PM Peak Hour trips by 35% in addition to payment of the TIF. (2) Requires investment in TDM to reduce PM Peak Hour trips by 50% in addition to payment of the TIF. (3) Requires investment in TDM to reduce PM Peak Hour trips by 30% in addition to payment of the TIF. Source: Hexagon Transportation Consultants, Inc., April 2019. Comparison to Other Jurisdictions Nexus Study Table 9 (page 28) provides a comparison of the proposed fee to surrounding jurisdictions that was completed in January 2019. This comparison converts the City’s fee from a per-trip fee to a fee per dwelling unit or 1,000 square feet of non-residential land use to allow for an apples to apples comparision. An excerpt is provided in Table 6, below. Table 6. Comparison to Transportation Impact Fees in Other Jurisdictions Jurisdiction Fee per Dwelling Unit (Multifamily Market Rate) Fee per 1,000 sq. ft. of Office Fee per Hotel Room Palo Alto – Existing $2,072 $4,255 $2,220 Palo Alto – Proposed $4,416(1) $9,069(1) $4,732(1) Menlo Park $2,026 $4,870 $1,834 San Carlos $1,892 $4,547 $1,831 San Mateo $2,602 $3,891 N/A Los Altos $4,159 $9,994 N/A Mountain View – North N/A $23,260 $2,071 City of Palo Alto Page 10 Jurisdiction Fee per Dwelling Unit (Multifamily Market Rate) Fee per 1,000 sq. ft. of Office Fee per Hotel Room Bayshore Los Gatos $6,808 $9,058 $7,775 San Jose – North San Jose Area $7,742 $14,440 $4,299 Notes: (1) This represents the maximum amount based on standard trip rates (for peak hour trips), however the number of trips and therefore the total fee charged to project(s) would be reduced in exchange for investments in TDM. See examples in Table 5. Source: Transportation Impact Fee Nexus Study, Hexagon Transportation Consultants Inc., April 2019 While there is a broad range of fees charged to different land uses in other municipalities, the nexus study points out that without a reduction for retail uses, the new fee would exceed the retail fee of other jurisdictions in the area even after TDM reductions were applied. Per the Finance Committee’s input and in line with Comprehensive Plan policies, the draft ordinance discounts the new fee by 50% for retail uses. Public Notice Under State law, the City must notify all persons requesting notice of fee increases of the time and place of hearing, while providing a general description of the proposal and the location of staff report (Government Code Section 66016). In keeping with this requirement, a notice was published in the newspaper on April 4, 2019 and again on April 12, 2019. Timeline and Next Steps This ordinance shall become effective on July 1, 2019. Development of an ordinance updating and codifying requirements for TDM plans will be an important next step. Historically, TDM plans have not always been as rigorous or enforceable as they should be, partly because prior to 2017, TDM plans were submitted at the discretion of applicants seeking parking adjustments, and the plans were not always included as enforceable conditions of approval. The City also did not have a good system for tracking and monitoring adopted plans. More recently, the City Council and members of the community have asked for and expect quantitative goals (provided in the Comprehensive Plan), meaningful and effective TDM plans, monitoring and enforcement. The code changes adopted in 2017 and cited above began this effort, but there is more to do. Staff is working on a draft ordinance to implement the Comprehensive Plan TDM requirements. The draft ordinance will be provided to the Planning and Transportation Commission for review/recommendation and to the City Council for their City of Palo Alto Page 11 consideration later this year. Staff is also preparing the administrative guidelines referenced in Section 18.52.030, and has completed an update to Accela, the City’s permit tracking system, to allow for tracking and monitoring of adopted TDM plans. Resource Impact The nexus study identifies a list of capital projects that would cost close to $1 billion in total ($935.1 million), with the City’s share estimated at approximately $391.6 million, assuming a City contribution to the county and regional projects on the list. Funding for the City’s share of these projects will be evaluated for inclusion in the five-year Capital Improvement Program which is reviewed as part of the annual budget cycle. If all development projected to occur by 2030 proceeds as predicted, the impact fee recommended would generate 4.4% of the City’s share of the cost, or $17.2 million. Finally, if public buildings are no longer exempt from the fee, the City would need to start a new practice of budgeting for additional costs to its capital projects in order to accommodate payment of the fee. This ordinance will replace the FY 2019 transportation impact fees outlined in the FY 2019 Municipal Fee Schedule, as approved in the FY 2019 Budget Adoption Ordinance, and replace with those outlined in Exhibit A of the attached ordinance. Policy Implications As noted in the Comprehensive Plan Changes section above, updating the City’s transportation impact fee program is a key implementation action identified in the City’s Comprehensive Plan and resulted from a mitigation measure in the associated Final EIR. The Comp Plan also contains many policies regarding the support and retention of retail, including: • Policy L-4.2: Preserve ground-floor retail, limit the displacement of existing retail from neighborhood centers and explore opportunities to expand retail. • Program L4.2.3: Explore and potentially support new, creative and innovative retail in Palo Alto. Environmental Review The proposed update to the City’s traffic impact fee program was evaluated in the Final EIR for the Comprehensive Plan (certified and adopted November 13, 2017) and identified as a mitigation measure (Measure Trans 1b) for the Plan. Projects to be funded by the fee will be subject to review pursuant to the California Environmental Quality Act (CEQA) prior to implementation when preliminary designs are available to enable that review. Attachments: Attachment A: Transportation Impact Fee (TIF) Ordinance (PDF) Attachment B: City of Palo Alto Transportation Impact Fee Nexus Study (April 9, 2019) (PDF) Attachment C: PAMC TDM Regulations (DOCX) Not Yet Approved SL(ts)/ ORD Transportation Impact Fee Ordinance version 4-9-19 1 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Title 16 of the Palo Alto Municipal Code By Establishing an Updated Citywide Transportation Impact Fee and Indefinitely Suspending Application of the Existing Area- Specific Transportation Impact Fees for the Stanford Research Park/El Camino Real CS Zone and the San Antonio/West Bayshore Area, and Amending the Municipal Fee Schedule to Update the City’s Transportation Impact Fees in Accordance with these Changes, All in Furtherance of Implementation of the Comprehensive Plan, Including Policy T-1.25 and Programs T1.2.2 and T1.25.1 The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. On November 13, 2017, the City Council adopted an update to the City of Palo Alto Comprehensive Plan to guide projected growth and development within the City through 2030. As described in the certified Final Environmental Impact Report (EIR) for the Comprehensive Plan Update, new development would worsen traffic congestion and result in significant environmental impacts related to transportation. The Final EIR also identified mitigation measures to address those impacts, which were adopted by the Council and are reflected in the Comprehensive Plan’s policies and programs as well as the adopted Mitigation Monitoring and Reporting Program. B. The Comprehensive Plan includes a policy (T-1.25) to pursue funding opportunities for ongoing transportation improvements that will help mitigate impacts of future development and protect residents’ quality of life. To implement that policy, the Comprehensive Plan includes a program (T1.25.1) to regularly evaluate the City’s existing transportation impact fee and modify it as needed to implement transportation infrastructure improvements. This program provides that “[m]odifications to the impact fee program should be structured in keeping with the City’s desire to require new development to reduce peak hour motor vehicle trips to the extent feasible through TDM plans and by contributions to the provision of transit services, shuttles, carpool/rideshare incentives and similar programs.” C. The Comprehensive Plan also includes a program (T1.2.2) to require new developments to implement transportation demand management (TDM) plans to achieve identified targets in vehicle trip generation, and to require payment of a transportation impact fee for those peak hour vehicle trips that cannot be reduced through TDM measures. D. Consistent with the Comprehensive Plan, the Council desires to implement the identified policy and programs and adopt an updated citywide transportation impact fee to offset the traffic impacts from new development throughout Palo Alto. Not Yet Approved 2019032201 2 E. The City has prepared a study entitled “City of Palo Alto Transportation Fee Nexus Study” dated April 9, 2019 and accepted by the City Council on _______, 2019 (hereinafter the “Nexus Study”), which specifies transportation improvements required to serve future development and recommends the amount of the impact fee on new development. The Nexus Study is available for public inspection during normal business hours at the Office of the City Clerk at 250 Hamilton Avenue, 1st Floor, Palo Alto, California, and the Planning & Community Environment Department at 250 Hamilton Avenue, 5th Floor, Palo Alto, California. The City Council has reviewed the Nexus Study and accepts the findings and conclusions of the study. F. The Nexus Study concluded that all new land uses in Palo Alto will generate an increased demand for transportation infrastructure and services, and recommended that the citywide transportation impact fee apply to both residential and non-residential development in the city. While the Nexus Study found that all new land uses will generate this increased demand for transportation, the Council finds that it is in the public interest to exempt some uses from payment of the fee, in order to promote other important City policies and priorities, such as 100% affordable housing developments. G. The improvements specified in the Nexus Study are intended to mitigate those traffic impacts identified in the Final EIR for the Comprehensive Plan and other recent traffic studies, and achieve a balanced transportation network. The range of improvements includes bicycle and pedestrian facilities, as well as intersection and roadway improvements, and is rooted in the City’s policies of encouraging alternative mode use, discouraging single-occupant vehicle trips, improving traffic flow without major capacity enhancements, and encouraging motorists to use arterials rather than local residential streets. The cost estimates for the improvements in the Nexus Study are planning-level estimates and will be adjusted over time as more detailed engineering, design and other project-level work is completed. H. The fee rates charged herein are no higher than necessary to cover the reasonable costs of providing transportation infrastructure to the population associated with new development, such as residents, visitors, employees and customers. The impact fees shall be used in accordance with the Planning and Zoning Law, California Government Code Section 65913.8 and the Mitigation Fee Act, California Government Code Section 66001, et seq. I. Based on the above findings and the Nexus Study, the City determines that the Citywide Transportation Impact Fee satisfies the requirements of the Mitigation Fee Act, California Government Code Section 66001, et seq. as follows: (1) The purpose of the fee is to help meet the demands imposed on the City’s transportation network by new development projects. (2) Funds from the collection of the fee will be used to meet the demand for pedestrian and bicycle infrastructure, as well as roadway and intersection improvements, generated by new development. (3) There is a reasonable relationship between the proposed uses of the fee and the impacts of the development projects subject to the fee on the transportation network in the city. Not Yet Approved 2019032201 3 (4) There is a reasonable relationship between the types of development projects on which the fee will be imposed and the need to fund transportation network improvements. (5) There is a reasonable relationship between the amount of the fee to be imposed on the development projects and the impact on the transportation network resulting from such projects. J. The City currently has several transportation impact fees – one citywide fee, and three that are specific to certain geographical areas of the city – which were adopted over time to fund different sets of improvements. The Council desires to transition to a single citywide transportation impact fee, and cease collection of the fees established in Chapters 16.45 (Stanford Research Park/El Camino Real CS Zone) and 16.46 (San Antonio/West Bayshore Area) of the Code with the remaining funds to be applied to planned improvements in the covered geographical areas as identified by the Chief Transportation Official and subject to approval of the Council, as provided for in the Municipal Code. One area-specific fee, for Charleston- Arastradero Corridor Pedestrian and Bicyclist Safety improvements, would remain in effect until the identified improvements are constructed. This Ordinance amends and updates the existing citywide transportation impact fee consistent with the Comprehensive Plan and the Nexus Study. SECTION 2. Chapter 16.59 (Citywide Transportation Impact Fee) of Title 16 (Building Regulations) of the Palo Alto Municipal Code is hereby amended to read as follows: 16.59.010 Short title. This chapter may be referred to as the "Citywide Transportation Impact Fee Ordinance." 16.59.020 Definitions. For the purposes of this chapter, the following definitions shall apply: (a) "Affordable unithousing" shall have the meaning provided in Section 16.65.020 of this Title mean housing with a purchase price or rent that is affordable to a "moderate," "low" or "very low" income household, as those terms are defined by the California Department of Housing and Community Development, as applicable to Santa Clara County. (b) "Citywide transportation capacity enhancements" shall mean public facilities and services that relieve citywide traffic congestion caused by new development projects. Citywide transportation capacity enhancements include, but are not limited to, advanced transportation management and information systems, expanded shuttle transit services, and bicycle and pedestrian improvements, and roadway and intersection improvements. Citywide transportation capacity enhancements do not include (i) intersection improvements designed primarily to accommodate increased traffic generated by a specific development or (ii) the addition of through-traffic lanes designed for primary use by private motorized vehicles. Not Yet Approved 2019032201 4 (c) "Construction cost index" shall mean the construction cost index for the San Francisco Bay Area set forth in the Engineering News Record published by McGraw Hill and Associates. In the event the Engineering News Record ceases to calculate and publish this index, then the city manager may designate a comparable, alternative index to serve as the construction cost index. (d) "Eligible citywide transportation capacity enhancements" shall mean (i) the citywide transportation capacity enhancements identified in the most recent citywide transportation impact fee nexus study approved by the city council, and (ii) other citywide transportation capacity enhancements that are approved by the city council that may be substituted for an identified improvement or service because they will mitigate similar congestion. (e) "Existing development" shall mean structures present (at the time the amount of the fee is calculated) and in use (within the two years prior to the time the amount of the fee is calculated) on parcels upon which new development is planned to occur. Where it is necessary to project PM peak hour vehicle trips generated by existing development, such projection shall be made based on either (i) the trip generation estimates used to determine the fee owed with respect to such existing development when the fee was last paid with respect to such existing development or (ii) if the fee has not been paid with respect to such existing development (or any portion thereof), the most recent use of the existing development. (f) "Fee" shall mean the citywide transportation impact fee imposed pursuant to this chapter. (g) Any reference in this chapter to the "Government Code" or to a section of the "Government Code" shall refer to the California Government Code as it exists at the time this ordinance chapter is applied and shall include amendments to that codethe Government Code made subsequently to the adoption of this chapter, it being the intent of the city to maintain the fee in compliance with applicable law. (h) "New development" shall mean the construction of new structures or additions to existing structures in the city and, with respect to residential development, any development project that creates additional residential units. "New development" shall not mean replacement or expansion of an existing residential unit. With respect to nonresidential development, "new development" shall also mean any development project that creates additional square footage of useful areagross floor area or involves a change in use that requires a use permit or other planning approval. (i) "Transportation Impact Analysis Guidelines" shall mean the most recent edition of the "Transportation Impact Analysis Guidelines" promulgated by the Valley Transportation Authority or such other trip projection methodology adopted by the city for the purpose of traffic impact analysis reports. Not Yet Approved 2019032201 5 16.59.030 Fee imposed. The fee is hereby imposed as a condition of the issuance of any permit for any new development, unless expressly exempted by this chapter. 16.59.040 Exemptions. The provisions of this chapter shall not apply to: (a) City buildings or structures. (b) Public school buildings or structures. (ca) Affordable housing units, either for sale or rental, that exceed the minimum number required for projects under the city’s below market rate (BMR) housing program or other provisions of this code, which units are, by recordable means, is permanently obligated to be and remain 100% affordable units for a period consistent with the requirements of Section 16.65.075(c) of this code. (d) Retail service, eating and drinking service, personal service, or automotive service when the total square footage (including new development) is 1,500 square feet or less. (eb) Day care centers used for childcare, nursery school or preschool education. (f) Below market rate housing units above and beyond the minimum number required for projects subject to the city's below market rate (BMR) housing program. The additional units must be offered and constructed consistently with the requirements of the BMR program. (gc) Accessory dwelling units (ADU) established by the conversion of an existing garage or carport, provided that the existing garage or carport was legally constructed, or received building permits, as of January 1, 2017, and is converted to an ADU with no expansion of the existing building envelope. (hd) Junior accessory dwelling units (JADU). (i) A change in tenancy that does not result in a change in use and which does not involve either (i) a demolition of an existing structure or (ii) an expansion of square footage of useful area. (je) New development which is exempt from the fee by virtue of the Constitutions of the United States and or California or by virtue of other applicable state or federal law. 16.59.045 Application of fee to projects in the approval process at effective date. The fee shall apply to development projects that are in the approval process at the effective date of this Section, except as modified herein. A project that has its final planning permit before the Not Yet Approved 2019032201 6 effective date of this Section and was exempt from the fee at the time of that permit’s issuance shall not be subject to the fee. 16.59.050 Timing of payment. (a) The fee shall be paid as set forth in Chapter 16.64 of this code. (b) A credit against the fee may be given for dedications of eligible citywide transportation capacity enhancements constructed or provided at private expense and for the value of land dedicated to the city that is necessary or useful to an eligible citywide transportation capacity enhancement. Such credit will be granted only if the city council determines that: (i) the city will experience a substantial cost savings or service quality improvement as a result of private construction or provision of the capacity enhancement or the dedication of land, (ii) the capacity enhancement can be expected to immediately and significantly relieve citywide traffic congestion, and (iii) the grant of the credit, in lieu of the fee, will not cause the city to delay the implementation of elements of the city’s transportation plan that are of higher priority, in the judgment of the city council, than the land or capacity enhancement that will be dedicated. The credit shall be applied at the time the city accepts the land or capacity enhancement. Where the city council has made the determinations required by this subdivision, payment of a portion of the fee equal to the amount of an expected credit against the fee may be deferred to the date of final building inspection approval of the development, provided the owner of the real property for which the fees are required enters into a recordable agreement with the city prior to issuance of the building permit for the development, which from the date of recordation, shall constitute a lien on the property and shall be enforceable against successors in interest to the property owner. The agreement shall provide that final occupancy approval shall not be given until the credit is applied and any remainingthe fees are paid or the credit issued. The agreement shall also provide that, in any action to collect the fees or any portion thereof, the city shall be entitled to all of its costs of enforcement and collection, including reasonable attorney’s fees. The director of planning and community environment may execute the agreement on behalf of the city in a form acceptable to the city attorney. Any deferral granted pursuant to this paragraph (b) shall be consistent with the requirements of Government Code Section 66007. Where a credit is given for the provision of a service that is an eligible capacity enhancement, the deferral of the fee, and the application of the credit, may be according to a schedule set forth in the recorded agreement, which schedule shall be designed to ensure that no credit is applied in advance of the provision of services for which the credit is made.In no event shall a credit exceed the amount of the fee, and the city shall have no obligation to make payment to or otherwise compensate a developer or applicant if the value of the dedication exceeds the fee amount. 16.59.060 Calculation of fee. (a) The fee imposed upon a new development shall be calculated by multiplying (i) the number of net new PM peak hour vehicle trips projected to be generated by a new development by (ii) the current fee rate. Not Yet Approved 2019032201 7 (b) The number of net new PM peak hour vehicle trips projected to be generated by a new development shall be calculated by subtracting the projected PM peak hour vehicle trips generated by existing development on the parcel(s) to contain the new development from the projected PM peak hour vehicle trips generated by the new development (including any existing structures to remain on the parcel after the construction of the new development). In no event shall a new development be projected to generate less than zero new PM peak hour vehicle trips as a result of this calculation. (c) For purposes of subsection (b), the number of PM peak hour vehicle trips projected to be generated by a new development shall be calculated pursuant to the transportation impact analysis guidelines. For development projects required to prepare, receive approval of, implement and monitor a transportation demand management (TDM) plan consistent with Comprehensive Plan Program T1.2.2, a target-based trip reduction approach allowed under the transportation impact analysis guidelines may be used, provided that the TDM plan is subject to an enforceable agreement approved by the city. (d) To the extent existing development on a parcel qualified qualifies as new development after the effective date of the most recent ordinance amending this section, but was exempt from the fee by virtue of Section 16.59.040 of this code in effect at the time the existing development was permitted, the PM peak hour vehicle trips projected to be generated by that existing development, shall not be subtracted (as otherwise required by subdivision (b) of this section) from the projected PM peak hour vehicle trips generated by the new development. (e) The rate of the fee shall be established from time to time by resolution or ordinance of the city council in the manner required by Government Code Sections 66004 and 66018. (f) The rate of the fee shall be subject to annual adjustment for inflation pursuant to Section 16.64.110. (g) The department of planning and community environment shall be responsible for the calculation of the fee at the time of plan review or when the fee is due, whichever is earlier. Applicants shall supply the city with the necessary information to calculate the fee in a format acceptable to the city. (h) The number of net new PM peak hour vehicle trips projected to be generated by a new development shall be calculated in a manner that accounts for peak hour vehicle trips expected to be reduced by any Transportation Demand Management (TDM) Plan approved or required by the city. (i) New retail service developments, as defined in Section 18.04.030(a)(125) of this code, shall be charged a fee at 50% of the ordinary rate set under subdivision (e) of this section. Not Yet Approved 2019032201 8 16.59.070 Special fund. (a) There is hereby established a special fund, entitled the "Citywide Transportation Impact Mitigation Fund", into which all fee proceeds and any interest thereon shall be deposited. The fund shall be maintained as required by Government Code Section 66006. (b) Moneys in the fund shall be expended only on the installation, acquisition, and construction, maintenance and operation of eligible citywide transportation capacity enhancements. 16.59.080 Accountability measures. (a) At least annually and as required by Government Code Section 66006, the city manager, or his or her designee, shall review the estimated cost of the public improvements to be funded by the fee, the continued need for those improvements and the reasonable relationship between such need and the impacts of pending or anticipated new developments. The city manager, or his or her designee, shall report his or her findings to the city council at a noticed public hearing and recommend any adjustment to the fee or other action as may be needed. (b) The city council shall review such report in the manner required by Government Code Section 66006(b)(2). (c) To the extent required by Government Code Section 66001(d), the city council shall make the findings required by that section. 16.59.090 Enforcement and pPenalties. (a) Any person violating or failing to comply with any of the requirements of this chapter shall be subject to an administrative penalty or administrative compliance order as set forth in Chapters 1.12 and 1.16 of this code. (b) The city attorney shall be authorized to enforce the provisions of this chapter and all agreements entered into in accordance with this chapter, by civil action and any other proceeding or method permitted by law. (c) Each person is guilty of a separate offense for each and every day during any portion of which any violation of any provision of this chapter is committed, continued or permitted by such person. (d) All remedies provided for in this section shall be cumulative and not exclusive and shall not preclude the city from any other remedy or relief to which it otherwise would be entitled under law or equity. Not Yet Approved 2019032201 9 (e) Failure of any official to fulfill the requirements of this chapter shall not excuse any person from the requirements of this chapter. (a) All remedies provided for in this chapter shall be cumulative and not exclusive. (b) Violation of any provision of this chapter, including, but not limited to, converting an exempt use to a use to which this chapter applies without paying the fee, is a misdemeanor punishable as provided in this code. (c) Each person is guilty of a separate offense for each and every day during any portion of which any violation of any provision of this chapter is committed, continued or permitted by such person. (d) Any person violating any provision of this chapter, including, but not limited to, converting an exempt use to a use to which this chapter applies, without paying the fee, shall be liable civilly to the city in a sum not to exceed five hundred dollars for each day in which such violation occurs. (e) Persons employed in the following designated employee positions are authorized to exercise the authority provided in the California Penal Code Section 836.5 and are authorized to issue citation for violations of this chapter: development services director, director of planning and community environment and their designee. SECTION 3. Collection of the fee established in Chapter 16.45 (Transportation Impact Fee for New Nonresidential Development in the Stanford Research Park/El Camino Real CS Zone) of Title 16 (Building Regulations) of the Palo Alto Municipal Code is hereby suspended. It is the Council’s intent to take further action to repeal the provisions of Chapter 16.45 upon expenditure of the collected funds. SECTION 4. Collection of the fee established in Chapter 16.46 (Approval of Projects with Impacts on Traffic in the San Antonio/West Bayshore Area) of Title 16 (Building Regulations) of the Palo Alto Municipal Code is hereby suspended. It is the Council’s intent to take further action to repeal the provisions of Chapter 16.46 upon expenditure of the collected funds. SECTION 5. The City Council hereby amends the Municipal Fee Schedule by amending the Citywide Transportation Impact Fee and deleting the Stanford Research Park/El Camino Real CS Zone and San Antonio/West Bayshore Area traffic impact fees, as shown in Exhibit "A", attached hereto and incorporated herein by reference. When effective, the fees as amended by this Ordinance shall supersede any prior inconsistent fees charged by the Department of Planning and Community Environment. The amount of the new or increased fees and charges is no more than necessary to cover the reasonable costs of the governmental activity, and the manner in which those costs are allocated to a payer bears a fair and reasonable relationship to the payer’s burden on, or benefits received from, the governmental activity. Pursuant to Government Code Section 66017, these changes shall become effective on July 5, 2019, which is no earlier than sixty (60) days from the date of adoption. Not Yet Approved 2019032201 10 SECTION 6. The Council finds that the potential environmental impacts related to this Ordinance were analyzed in the Final EIR for the Comprehensive Plan Update, which was certified and adopted by the Council by Resolution No. 9720 on November 13, 2017. The Ordinance is consistent with and implements the program evaluated in the EIR. SECTION 7. Severability. If any section, subsection, sentence, clause, phrase or word of this Ordinance is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed and adopted this Ordinance, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. SECTION 8. This Ordinance shall be effective on July 5, 2019, which is no earlier than the sixtieth (60th) day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Chief Transportation Official Not Yet Approved 2019032201 11 EXHIBIT A Municipal Fee Schedule Planning and Community Environment Traffic Impact Fees Stanford Research Park/El Camino Real CS Zone $12.42 per net sq. ft. San Antonio/West Bayshore area $2.56 per sq. ft. Citywide Transportation Impact Fee $3,575.007,886.00 per net new PM peak hour trip City of Palo Alto Transportation Impact Fee Nexus Study Final Report Prepared for: City of Palo Alto April 9, 2019 Hexagon Transportation Consultants, Inc. Hexagon Office: 4 North Second Street, Suite 400 San Jose, CA 95113 Phone: 408.971.6100 Client Name: City of Palo Alto Hexagon Job Number: 16JC05 Transportation Impact Fee Nexus Study April 9, 2019 P a g e | ii Table of Contents Executive Summary ............................................................................................................................... iii 1. Introduction and Existing Impact Fees .......................................................................................... 1 2. Projected Growth and Its Impacts ............................................................................................... 11 3. Transportation Impact Fee Improvements .................................................................................. 16 4. Recommended Fee Program ..................................................................................................... 21 5. Transportation Impact Fees in Other Cities ................................................................................ 26 6. Conclusions ................................................................................................................................ 33 Appendix Appendix A: Project Descriptions of Transportation Impact Fee Improvements List of Tables Table ES- 1 TIF Rates for Multi-Family Residential and Office Uses in Nearby Cities ........................ vi Table 1 Summary of Existing Palo Alto Impact Fees ........................................................................ 3 Table 2 San Antonio/West Bayshore Traffic Impact Fee Projects ..................................................... 5 Table 3 Stanford Research Park/El Camino Real Traffic Impact Fee Projects .................................. 7 Table 4 Citywide Transportation Impact Fee Projects ...................................................................... 9 Table 5 Projected Growth by the Year 2030 under the Council Reduced Preferred Scenario ........ 12 Table 6 Projected PM Peak-Hour Vehicle Trips Generated by the Council Reduced Preferred Scenario ............................................................................................................ 13 Table 7 Projected Increase in PM Peak-Hour Motor Vehicle Trips After TDM Reductions .............. 14 Table 8 Citywide Transportation Impact Fee Improvements ........................................................... 19 Table 9 Transportation Impact Fees in Nearby Cities ..................................................................... 28 List of Figures Figure 1 Areas Subject to Transportation Impact Fees ...................................................................... 4 Transportation Impact Fee Nexus Study April 9, 2019 P a g e | iii Executive Summary This nexus study reviews the City of Palo Alto’s existing transportation impact fees and makes recommendations regarding the impact fee program in the future. Findings have been made in accordance with the requirements of the Mitigation Fee Act (AB 1600). Existing Transportation Impact Fees The City of Palo Alto currently has four transportation-related impact fees, of which three are applied in specific areas of the city and one is applied citywide. These four impact fees, the year when each was first adopted, and a brief summary of their current status are as follows:  San Antonio / West Bayshore Area Traffic Impact Fee, 1986: This area has been redeveloped since the EIR and nexus study were prepared in 1986.  Stanford Research Park / El Camino Real CS Zone Transportation Impact Fee, 1989: Of the four intersection improvement projects listed in the municipal code for this area-specific fee, two are complete and the City has recently signed an agreement with the Santa Clara County Department of Roads and Airports to make improvements to the other two.  Charleston – Arastradero Corridor Pedestrian and Bicyclist Safety Impact Fee, 2005: The corridor project is not yet complete. The City plans to continue to use these impact fee funds towards completion of the Charleston-Arastradero Corridor Plan, as provided for in the original nexus study.  Citywide Transportation Impact Fee, 2007: The City has used funds from the citywide TIF to fund bicycle and pedestrian improvements and an upgraded traffic signal system. Projected Future Growth and Resulting Impacts The basis of this nexus study is the Palo Alto Comprehensive Plan Update and the Council Reduced Preferred Scenario, as approved by the City Council on July 30, 2018. The Council Reduced Preferred Scenario reduced the Comprehensive Plan Preferred Scenario’s cap on Office/R&D development by half, from 1.7 million square feet to 850,000 square feet. Using the same forecasting model that was used for other planning scenarios, it is estimated that there will be 3,229 additional PM peak-hour motor vehicle trips generated by the Council Reduced Preferred Scenario by the year 2030. The Comprehensive Plan Update requires all new development projects to develop Transportation Demand Management (TDM) plans to reduce the number of PM peak-hour motor vehicle trips by a specified amount, depending on the location of the project. In other words, the City is requiring an upfront investment in ongoing trip reductions by new development through the implementation of robust Transportation Impact Fee Nexus Study April 9, 2019 P a g e | iv TDM plans. The range of required reductions is from 20% to 45%. Based on the amount of growth projected for each area and the TDM trip reduction target for that area, there would be an estimated reduction of 1,044 PM peak-hour trips, assuming all projects meet their TDM targets. Thus, with this upfront investment in trip reductions through TDM measures, it is estimated that 2,185 new PM peak-hour trips would be generated by the future housing and employment growth defined by the Council Reduced Preferred Scenario, which is 4.4% of the total estimated citywide PM peak-hour trips in the year 2030. The total estimated citywide PM peak-hour vehicle trips were estimated with the Palo Alto travel demand forecasting model used in the Comprehensive Plan Update analysis. The Council Reduced Preferred Scenario would generate fewer PM peak-hour trips than the original Preferred Scenario, but it would still result in transportation impacts because it would still generate additional traffic as a result of additional housing units and non-residential square footage. In order to ensure that there is a reasonable relationship between the impacts caused by the additional development and the amount of the impact fee imposed on that new development, the calculation of the impact fee is based on new development’s fair share of the costs of the proposed improvements. New development would generate 4.4% of the PM peak-hour trips in 2030, so 4.4% is the fair share of transportation improvement costs that new development should fund through the citywide TIF. The purpose of the improvements to be funded by the Transportation Impact Fee is to mitigate or offset these projected impacts to the extent feasible. Improvements to Mitigate Impacts Hexagon recommends transitioning to a single citywide Transportation Impact Fee (TIF) rather than the current structure of three fees that apply in specific areas and one citywide fee. However, we recommend retention of the Charleston-Arastradero Corridor fee until that bicycle and pedestrian safety project has been completed. The City’s Comprehensive Plan Update FEIR is the basis for the nexus between the projected future development in the City and the proposed citywide TIF. The proposed citywide TIF expenditure plan is rooted in the City’s policies of encouraging alternative mode use, discouraging single-occupant vehicle trips, improving traffic flow without major capacity enhancements, and encouraging motorists to use arterials rather than local residential streets. The total estimated cost of the improvements to be funded partially with the citywide TIF is $935,100,000. For projects for which an annual expenditure amount has been provided, the total cost assumes 12 years (2018 – 2030) of that annual amount. The City’s estimated share of these total costs is $391,600,000. Based on the fact that 4.4% of the total PM peak-hour motor vehicle trips generated in the year 2030 would be generated by new development, 4.4% of the City’s share of improvement costs, $17,230,400, is attributed to new development and should be funded by the citywide TIF. As noted earlier, new development will also be responsible for a significant upfront and ongoing investment in trip reductions, through implementation of TDM plans. Proposed Citywide Transportation Impact Fee The proposed amount of the citywide Transportation Impact Fee has been calculated by dividing the cost of the improvements to be funded by the TIF by the number of additional PM peak-hour motor vehicle trips. The resulting impact fee is $7,886 per PM peak-hour trip ($17,230,400 / 2,185 = $7,885.77). Additional recommendations include:  The City should continue to charge the TIF on a “per PM peak-hour trip” basis and use the trip rates included in the most recent edition of the Institute of Transportation Engineers’ (ITE) Trip Transportation Impact Fee Nexus Study April 9, 2019 P a g e | v Generation Manual. Trip reductions due to implementation of TDM plans should be applied in accordance with the policies of the Comprehensive Plan Update.  It is recommended that the existing exemptions from the citywide TIF be retained, for consistency with Palo Alto’s community facilities impact fees and to continue to encourage development of those land uses. The City may wish to consider a lower per PM peak-hour trip fee for retail uses or increasing the size of retail uses that would be exempt from the TIF. The rationale for such a change is that many retail projects serve to reduce vehicle miles travelled (VMT) and result in lower traffic impacts than their high trip generation rate suggests, due to short trip lengths, pass-by trips, and diverted linked trips.  Consider exempting all accessory dwelling units (ADUs) from the citywide TIF in order to encourage their development. The City currently exempts junior accessory dwelling units (JDUs) and certain ADUs that were established by garage/carport conversions.  It is recommended that development projects on parcels where the existing structures have been vacant for two or more years do not receive credit for the existing uses on the parcel, when calculating the TIF. Such a policy is consistent with VTA’s Transportation Impact Analysis Guidelines requirement to use traffic counts that are no more than two years old. If a parcel has been vacant for two or more years, existing traffic conditions reflect that vacancy, rather than the historical usage of the site.  The City should continue to adjust fee levels annually, in line with the Construction Cost Index. Impact Fees in Other Cities The Transportation Impact Fees of numerous nearby cities were tabulated in order to provide context for considering Palo Alto’s existing citywide TIF of $3,700 and proposed TIF of $7,886 per net new PM peak-hour vehicle trip. Table ES-1 presents a summary of the TIF rates for two common land uses, multi-family housing and offices, in nearby cities, most of which specify their rates on a per dwelling unit and per thousand square feet basis. To facilitate comparison with other cities’ rates, Palo Alto’s “per PM peak-hour vehicle trip” existing and proposed rates were converted to rates per dwelling unit and per thousand square feet, based on the most recent ITE Trip Generation Manual (10th Edition, 2017) rates. The proposed TIF of $7,886 per net new PM peak-hour trip results in a “pre-TDM reduction” rate of $4,416 per multi-family dwelling unit and $9,069 per thousand square feet of office space. However, because Palo Alto would require development projects to achieve a trip reduction of between 20% and 45% via robust TDM plans, depending on a project’s location, no project would pay the “pre- TDM reduction” rates. The derived TIF rates for Palo Alto are shown after accounting for TDM trip reductions that would apply in different parts of the City. As shown in Table ES-1, although there would be a single citywide rate of $7,886 per net new PM peak-hour vehicle trip, the effective rate that would be paid by a specific project would depend on the estimate of the number of PM peak-hour trips it would generate after achieving the trip reduction target for its location. The ongoing cost of achieving those trip reductions through implementation of TDM plans has not been included and rests solely with the developer. In general, Palo Alto’s proposed citywide TIF rate, before TDM reductions are accounted for, would be among the highest rates of the cities surveyed. It is difficult to generalize about how the proposed rates after TDM reductions compare to other cities’ rates, because there is such a range of required TDM reductions (from 20% to 45%) and wide variation among the rates charged for different land uses by different municipalities. The land use for which a broad generalization can be made is that Palo Alto’s proposed rate for retail uses would be higher than other cities’ rates for retail even after TDM reductions are taken into account. This disparity suggests that Hexagon’s recommended reduction in the TIF rate imposed on new retail developments would be warranted if Palo Alto wishes to encourage more neighborhood-serving retail projects. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | vi Table ES- 1 TIF Rates for Multi-Family Residential and Office Uses in Nearby Cities Source: Hexagon Transportation Consultants, Inc., 2019 Multi-Family TIF Office TIF City or Area within City (per d.u.)(per KSF)Notes Palo Alto Current Citywide TIF 2,072$ 4,255$ Based on $3,700 per PM peak-hour trip. Proposed TIF, no TDM reduction 4,416$ 9,069$ Based on $7,886 per PM peak-hour trip. Proposed TIF less 20% for TDM 3,533$ 7,255$ Based on $7,886 per PM peak-hour trip; all other areas of City. Proposed TIF less 30% for TDM 3,091$ 6,348$ Based on $7,886 per PM peak-hour trip; Stanford Research Park or El Camino Corridor location. Proposed TIF less 35% for TDM 2,871$ 5,895$ Based on $7,886 per PM peak-hour trip; Calif. Ave. location. Proposed TIF less 45% for TDM 2,429$ 4,988$ Based on $7,886 per PM peak-hour trip; downtown location. Menlo Park Citywide 2,026$ 4,870$ Supplemental Downtown a 223$ 459$ Based on $399 per PM peak-hour trip . Redwood City Non-Downtown 992$ 2,380$ Downtown 744$ 1,790$ San Carlos 1,892$ 4,547$ San Mateo 2,602$ 3,891$ Mountain View Citywide, except North Bayshore 2,616$ 4,990$ North Bayshore Area N.A.23,260$ No rate given for residential uses in this area. Los Altos 4,159$ 9,994$ Sunnyvale South of S.R. 237 1,931$ 4,640$ Moffett Park N.A. 6,375$ No rate given for residential uses in this area. Cupertino 3,830$ 17,400$ Los Gatos 6,808$ 9,058$ TIF is $930 per DAILY trip. TIF calculated with ITE daily trip rates times $930. Santa Clara 520$ 1,360$ San Jose North San Jose Area 7,742$ 14,440$ Industrial TIF rate is $14,440; used for offices in this area. Evergreen-East Hills Area N.A.13,170$ No rate for Multi-Family. Single-Family is $15,148 per unit. US 101/Oakland Ave/Mabury Rd TIF is $35,767 per PM peak hour trip that would use one of the planned interchange improvements. I-280/Winchester Blvd.TIF is $25,641 per PM peak hour trip that would use the proposed off-ramp improvement. Fremont 2,417$ 5,375$ Multi-Family rate shown is for units with 2-3 bedrooms. Note: TIF amounts are from each city's website. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 1 1. Introduction and Existing Impact Fees This report presents the results of a nexus study prepared to update the City of Palo Alto’s existing transportation impact fees. Development impact fees are commonly used throughout California to require new development to pay for the needs that it creates. In Palo Alto, impact fees are currently charged for transportation, housing, community facilities, public art, and parkland dedication. The purpose of this study is to allow the City to make the necessary findings in order to revise its existing transportation-related impact fees. The City of Palo Alto currently has four transportation-related impact fees, of which three are applied in specific areas of the city and one is applied citywide. These four impact fees and the year when each was first adopted are as follows:  San Antonio / West Bayshore Area Traffic Impact Fee, 1986  Stanford Research Park / El Camino Real CS Zone Transportation Impact Fee, 1989  Charleston – Arastradero Corridor Pedestrian and Bicyclist Safety Impact Fee, 2005  Citywide Transportation Impact Fee, 2007 Development Impact Fees in California The Mitigation Fee Act (Government Code Sections 66000-66025) was originally enacted through Assembly Bill 1600 in 1987 and requires that a reasonable relationship (nexus) be established between the projects or mitigations to be funded by an impact fee and the impacts caused by new development. Impact fees are one-time fees that are charged by a local government agency and are distinct from taxes and special assessments. When imposing an impact fee as a condition of approval of a development project, a local agency must make the following findings:  Identify the purpose of the fee;  Identify the use to which the fee is to be put;  Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed;  Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed. This study provides the necessary evidentiary basis to support these findings. The current status of each of the four transportation impact fees in Palo Alto is also provided in order to address the question of whether it would be preferable for the City to retain four separate transportation impact fees or consolidate some or all of them. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 2 Existing Impact Fees in Palo Alto The City of Palo Alto currently charges development impact fees for the following broad purposes: transportation, affordable housing, community facilities, public art, and parkland dedication. Within the category of community facilities, separate impact fees are charged for parks, community centers, libraries, public safety facilities, and general government facilities. Within the category of transportation, there are currently four separate impact fees, of which three are imposed only in specific areas of the city and one is applied citywide. A summary of Palo Alto’s impact fees for Fiscal Year 2018-19 (effective as of August 20, 2018) is presented in Table 1. The first impact fee established by Palo Alto was for affordable housing, in 1984. This was followed by adoption of two of the transportation-related impact fees in the late 1980s, around the time that AB 1600 was passed. The other two transportation-related fees were adopted approximately ten years ago, in the mid-2000s. Community facilities fees (for parks, libraries, community centers, public safety facilities, and general government facilities) were established in 2002 and 2015, and the housing impact fee was significantly revised in 2017. It should be noted that the city also has an in-lieu parking fee for the Downtown Parking Assessment District, but this is not an impact fee and is not addressed in this nexus study. Exemptions from impact fees for specific land uses vary for the different fees. The Citywide Transportation Impact Fee (TIF) and the Charleston-Arastradero Corridor Safety Fee have the same exemptions as all of the community facilities impact fees. These exemptions, as identified in the July 1, 2017 update of the “Palo Alto Development Impact Fees” document and amended by City Council on December 17, 2018, include:  Single-family home remodels or additions,  Housing projects with 100% affordable housing units,  Below Market Rate (BMR) housing units beyond the minimum number required by the City’s BMR housing program,  Public buildings and schools,  Retail, personal service, or automotive service that is 1,500 s.f. or smaller,  Daycare, nursery schools, and preschools,  On-site cafeteria/recreation/childcare facilities for employee use only,  Hazardous materials storage,  Junior accessory dwelling units and certain accessory dwelling units established by garage/carport conversion. All residential uses are exempt from the San Antonio-West Bayshore and the Stanford Research Park traffic impact fees, but the following residential uses are subject to the Citywide TIF and the Charleston/Arastradero TIF: new homes on an empty parcel, second units not otherwise exempt, multi- family residential projects, and required Below Market Rate units. Replacement single-family homes are not subject to the citywide TIF. Figure 1 shows the areas covered by the three transportation-related impact fees that apply in specific areas of the city. Any new project that is within one of the three areas would pay at least two transportation-related impact fees: the appropriate area-specific fee and the citywide fee. Because of the overlap of the three areas, there are locations where a new development may be subject to three transportation impact fees: the citywide fee, the Charleston-Arastradero Corridor fee, and either the San Antonio/West Bayshore fee or the Stanford Research Park fee. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 3 Table 1 Summary of Existing Palo Alto Impact Fees Source: City of Palo Alto, “Fiscal Year 2019 Adopted Municipal Fee Schedule” Year Fee Was First Multi- Family Multi- Family Hotel/Office/ Impact Fee Adopted < 900 s.f.> 900 s.f.Commercial Motel Institutional Industrial Transportation San Antonio/West Bayshore 1986 Stanford Research Park/El Camino Real 1989 Charleston-Arastradero Corridor 2005 Citywide 2007 Community Facilities Parks 2002 12,333$ 18,416$ 4,082$ 8,073$ 5,237$ 2,368$ 5,237$ 5,237$ Community Centers 2002 3,196$ 4,787$ 1,062$ 2,104$ 296$ 133$ 296$ 296$ Libraries 2002 1,117$ 1,662$ 367$ 668$ 282$ 118$ 282$ 282$ Public Safety Facilities 2015 1,072$ 1,072$ 858$ 858$ 599$ N.A.799$ 200$ General Govt Facilities 2015 1,351$ 1,351$ 1,080$ 1,080$ 754$ N.A.1,008$ 251$ Total Community Facilities 19,069$ 27,288$ 7,449$ 12,783$ 7,168$ 2,619$ 7,622$ 6,266$ Housing 2017 Single-Family Detached: $77.62 per s.f.Office/R&D: $36.22 per s.f. Condos & Single-Family Attached: $51.75 per s.f.Hotel, Retail, Other Non-Residential: $21.08 per s.f. Residential Rental units: $20.70 per s.f. Public Art 2013 Parkland Dedication 2006 Note: All fees are as of August 20, 2018. Fee amounts are revised annually. Residential Non-Residential Single Family >3000 s.f. Single Family <3000 s.f. $400 per 1,000 square feet $3,700 per net new PM peak hour trip Per dwelling unit Per 1,000 square feet Applies only to projects that require a subdivision or parcel map with less than 50 parcels when land is not dedicated. If over 50 parcels, project must dedicate land. 1% of first $113.18 million construction valuation and 0.9% of construction valuation in excess, for commercial buildings with floor area > 10,000 s.f. and construction value >$200,000 All residential uses exempt All non-residential uses exempt All residential uses exempt $2,650 per 1,000 square feet All residential uses exempt $12,850 per net new 1,000 square feet $1,351 per residential unit Figure 1 Traffic Impact Fee Areas Palo Alto Impact Fee Nexus Study LEGEND = Stanford Research Park/El Camino Real Area = City of Palo Alto = San Antonio/W. Bayshore Area = Charleston/Arastradero Corridor Area 101 280 Al m a S t El Ca m i n o R e a l Page Mill R d F o o t h i l l E x p y Oreg o n E x p y San An t o n io Rd E Cha r l e st o n R d E mba rcadero R d E Me ad ow Dr Ara stra d ero R dLos R oble s Av e Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 5 All four of the transportation impact fees provide for annual adjustments to the fees based on the Construction Cost Index published by the Engineering News Record. The following sections provide more detail on the history and the projects included in each of the city’s four transportation-related impact fees. San Antonio/West Bayshore Area Adopted in 1986, Chapter 16.46 of the Palo Alto Municipal Code (PAMC) is entitled “Approval of Projects with Impacts on Traffic in the San Antonio/West Bayshore Area,” which is generally bounded by U.S. Highway 101, Middlefield Road, Fabian Way, and the city limits. The municipal code identifies four specific projects to be funded with this impact fee, as shown in Table 2, but also states that the funds may be spent on “alternative improvements in the area as determined by the Chief Transportation Official, subject to the approval of the City Council.” The need for this impact fee was established in the San Antonio/West Bayshore Environmental Impact Report (EIR). Most of the development that was analyzed in that EIR has occurred. This impact fee was primarily intended for capacity-enhancing intersection improvements to accommodate the projected growth in traffic resulting from new development. The City’s approach to accommodating traffic growth has shifted in the last 30 years and is now geared more towards encouraging alternative mode use than towards adding roadway and intersection capacity. Therefore, as shown in Table 2, not all of the projects specifically identified in the municipal code in 1986 have been completed. Table 2 San Antonio/West Bayshore Traffic Impact Fee Projects Source: Hexagon Transportation Consultants, Inc., 2019 Projects Listed in Municipal Code a Current Status San Antonio Road/Middlefield Road:City has implemented a second southbound left-turn lane and a Feasibility study for a second left-turn lane southbound right-turn lane, but no longer plans to add a second on westbound Middlefield at San Antonio left-turn lane to westbound Middlefield at San Antonio. San Antonio Road/Charleston Road:Project not implemented and City does not plan to pursue project. Right-turn lane on westbound Charleston City is currently in concept planning phase to add a second southbound left-turn lane and pedestrian improvements. Signalized intersection at Ford Aerospace Project is no longer needed as intersection does not meet signal driveway warrants. Former Ford Aerospace site is now JCC site. Pedestrian beacon/median improvements planned at existing crosswalk. Interconnections of area traffic signals Project complete including adaptive signal timing. Note: (a) Projects listed in Palo Alto Municipal Code Chapter 16.46. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 6 The current status of the projects, as presented in Table 2, is based on input from City staff and on Resolution No. 9389, passed by the City Council on January 14, 2014, which included an update on projects to be funded by impact fees that had not yet been completed at that time.1 The current amount of this fee, as of August 20, 2018, is $2.65 per square foot for non-residential projects only. The current balance in the San Antonio /West Bayshore Fund, as of June 30, 2018, is $904,216, according to the “Annual Report on Development Impact Fees for Fiscal Year 2018,” as presented to the City Council on January 22, 2019. No funds have been spent from the San Antonio/West Bayshore Traffic Impact Fee fund for many years. The following projects have been proposed for expenditure from this fund:  US 101/Adobe Creek Bicycle/Pedestrian Bridge. The current budget for this project does not include any San Antonio/West Bayshore TIF funds. However, if additional funds are needed to complete this project, it would be the first priority for San Antonio/West Bayshore TIF funds, and funds would be directed as needed to the US 101/Adobe Creek bridge.  San Antonio Road and East Charleston Road Intersection Improvements. The project would construct multi-modal safety and operational improvements at this intersection. The project is estimated to cost a total of $1,800,000. The City plans to use the remaining $900,000 in San Antonio/West Bayshore TIF funds toward this improvement. The remaining project costs ($900,000) will be partially funded using citywide TIF funds (presented in Chapter 3).  Fabian Way Complete Street, which is part of the “Waverley Multi-Use Path Improvements and East Meadow Drive and Fabian Way Enhanced Bikeways” project, for which the City has received funding from VTA via a Vehicle Emissions Reductions Based at Schools (VERBS) grant for approximately $900,000. This project has three components and the Fabian Way component is within the San Antonio/West Bayshore area. The City expects to fund the remaining cost of this project from the citywide TIF because the San Antonio Road and East Charleston Road project is expected to consume the remaining San Antonio/West Bayshore TIF funds before this project is constructed. However, if the project timelines change, a portion of the cost of this project may be funded from the San Antonio/West Bayshore area TIF.  San Antonio Road/Avenue Enhanced Bikeway Project. This project includes a Class I shared-use path with improved intersection treatments and wayfinding between East Charleston and Byron Street and a Class III bicycle boulevard with traffic calming between Byron Street and Alma Street. The Class I portion of the project is in the San Antonio/West Bayshore area. All remaining San Antonio/West Bayshore TIF funds would be directed to this project. Stanford Research Park / El Camino Real CS Zone The “Transportation Impact Fee for New Non-Residential Development in the Stanford Research Park/ El Camino Real CS Zone” (PAMC Chapter 16.45) was adopted in 1989. Improvements to eight intersections were originally identified as the purpose of the impact fee, based on the impacts identified in the Citywide Land Use and Transportation Study Environmental Impact Report, September 1988, and certified by the City Council on March 6, 1989. The project list was updated in 2002 to reflect the four capacity improvements identified in the 1998-2010 Comprehensive Plan Environmental Impact Report. These four projects, as currently specified in the municipal code, and their current status are 1 California law (Government Code Section 66001(d)) requires local agencies to make certain findings with respect to development fees which remain unexpended or uncommitted five or more fiscal years after deposit of such fees. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 7 presented in Table 3. Of these four projects, two have been completed and two will be completed soon. Three of the four intersections currently identified in the municipal code as the projects to be funded with this impact fee were studied extensively in the Draft Expressway Plan 2040 by the Santa Clara County Department of Roads and Airports and in the Page Mill Road Expressway Corridor Study Report, prepared for Santa Clara County, the City of Palo Alto, and the Town of Los Altos Hills. The Santa Clara County Department of Roads and Airports has jurisdiction over all expressways in Santa Clara County, including two in Palo Alto: Foothill Expressway and Oregon Expressway/Page Mill Road. The City plans to implement improvements at three Page Mill Road intersections, at El Camino Real, Hansen Way, and Hanover Street, using the project descriptions included in the Page Mill Road Expressway Corridor Study Report. The City has recently approved an agreement with the County for the design and construction of these improvements, which includes $3.2 million from the Stanford Research Park/El Camino Real TIF fund. At the intersection of Foothill/Arastradero/Miranda, which currently functions as one large signalized intersection, the project described in the municipal code has been completed. However, the County has proposed a major reconstruction of that intersection to include grade separation of Foothill and Arastradero, a roundabout at Miranda and Arastradero, and a signalized intersection for the southbound Foothill off-ramp on Arastradero. Table 3 Stanford Research Park/El Camino Real Traffic Impact Fee Projects Source: Hexagon Transportation Consultants, Inc., 2019 Projects Listed in Municipal Code a Current Status Page Mill Expressway/Hanover Street:Page Mill Corridor Study: "Add a northbound and Add southbound right-turn lane;southbound left-turn lane and convert signal to 8-phase operation. restripe northbound approach. (Hanover Convert Hanover to one through lane each direction and add is the N-S street)bike lanes." Page Mill Expressway/El Camino Real:Page Mill Corridor Study: "Modify alignment of westbound Add right lanes to all approaches.left-turn lane to provide additional capacity; provide dedicated westbound right-turn lane; extend bike lanes." City plans to implement project using Corridor Study definition. Foothill Expressway/Arastradero/Miranda:Project as defined in PAMC has been completed. Add additional westbound lane on County's 2040 Expwy Plan proposes major reconstruction of Arastradero at Miranda to provide two left-turn this intersection, including grade separation and a roundabout. lanes and a right-turn lane at Foothill. Middlefield Road/Oregon Expressway:Project complete. Portion of project not implemented due to Add northbound and southbound need for tree removal. left-turn lanes (Middlefield is the N-S street) Note: (a) Projects listed in Palo Alto Municipal Code Chapter 16.45. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 8 As with the San Antonio/West Bayshore Impact Fee, the Stanford Research Park/El Camino Real impact fee funds may be used for alternative improvements or alternative intersections, subject to the City Council’s approval. The current amount of this fee, as of August 20, 2018, is $12.85 per net new square foot for non-residential projects only. A sum of $1,000,000 was transferred from the Stanford Research Park/El Camino Real impact fee funds to Santa Clara County in Fiscal Year 2018 for support of intersection improvements at Page Mill/Hanover and Page Mill/Hansen concurrent with construction of the project at 1050 Page Mill Road. The current balance in the Stanford Research Park/El Camino Real Fund, as of June 30, 2018, is $2,288,715, according to the “Annual Report on Development Impact Fees for Fiscal Year 2018”, as presented to the City Council on January 22, 2019. These funds will provide the City’s remaining share of the budget for the Page Mill Road intersection improvements described above Charleston-Arastradero Corridor The “Charleston Arastradero Corridor Pedestrian and Bicyclist Safety Impact Fee” (PAMC Chapter 16.60) was adopted in 2005. It applies to both residential and non-residential development within one- half mile of the corridor, beginning at Fabian Way and ending at Miranda Avenue, near Foothill Expressway. The purpose of the impact fee is to provide funding for the Charleston Arastradero Corridor Plan, a streetscape improvement plan intended to address the safety concerns of pedestrians and bicyclists using the corridor. As described in the 2005 nexus study prepared for this impact fee, the improvements include:  Reorganization of auto travel lanes throughout the corridor, with removal of auto travel lanes in some locations in favor of bike lanes and landscaped medians;  Provision of a bike lane in each direction that is tinted or painted to enhance safety;  Lighted (pedestrian-activated) crosswalks in several locations, particularly near schools;  Pedestrian bulb-outs and median island refuges for pedestrian safety, along with an irrigated, planted center median interspersed with left-turn pockets;  Installation of frontage improvements, including new street lighting to improve pedestrian and bicyclist visibility and safety. The 2005 nexus study characterized the Charleston Arastradero Corridor Plan as a defined project with a defined timeline, and noted that there was no need for funds after the project had been fully implemented. Thus, it was assumed that the impact fee would terminate after project construction was complete. The City has partially completed the project. The cost of the remaining (Phase III) work is estimated at $5,545,200. Funds have been transferred annually to the City’s Capital Improvement Program since the inception of this impact fee fund, for use on improvements in the corridor. The current amount of the fee, as of August 20, 2018, is $1,351 per residential unit and $0.40 per square foot for non-residential development. The current balance in the Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety Fund, as of June 30, 2018, is $8,557, according to the “Annual Report on Development Impact Fees for Fiscal Year 2018”, as presented to the City Council on January 22, 2019. The City plans to also use other fund sources to complete this project. Citywide Transportation Impact Fee The “Citywide Transportation Impact Fee” (PAMC Chapter 16.59) was adopted in 2007. However, the original nexus study for this impact fee was conducted in 2004, prior to the adoption of the Charleston Arastradero Corridor Impact Fee in 2005. The nexus study for the citywide fee was updated in 2007 to incorporate revised project costs and traffic projections. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 9 One key difference between the Citywide TIF and the three other TIFs is that it is based on PM peak hour trips generated by a project, rather than on a per square foot or per dwelling unit basis. This fee basis provides an even closer nexus between the transportation impacts caused by new development and the amount that a given project is required to pay. The nexus study identified projects for the Citywide Transportation Impact Fee, as shown in Table 4. Because the fee was to be charged on a citywide basis, a geographically balanced expenditure plan was developed in order to ensure geographic equity. None of the projects to be funded by the citywide fee were capacity enhancements as identified in the San Antonio/West Bayshore fee or the Stanford Research Park/El Camino Real fee. Because the citywide fee was intended to fund different types of projects than those specific area fees, the area fees were retained when the citywide fee was adopted. The current amount of the fee, as of August 20, 2018, is $3,700 per net new PM peak hour trip for both residential and non-residential development. The current balance in the Citywide Transportation Fund, as of June 30, 2018, is $1,833,471, according to the “Annual Report on Development Impact Fees for Fiscal Year 2018”, as presented to the City Council on January 22, 2019. An updated list of projects to be funded with the Citywide TIF is presented in Chapter 3. Table 4 Citywide Transportation Impact Fee Projects Source: Hexagon Transportation Consultants, Inc., 2019 Projects Listed in Nexus Study a Current Status Citywide Transportation Demand Management:TIF funds have not been used for this project. (State law 0.5 FTE for a city staffperson to manage currently limits the use of impact fees to capital projects.) and market a TDM program. Advanced Transportation Management and Project complete. Information System Expanded Palo Alto Shuttle Service:TIF funds have not been used for this project. (State law Nexus study included both operating cost currently limits the use of impact fees to capital projects.) of shuttle service and capital cost of replacing 7 buses. Bicycle and Pedestrian Projects: Bicycle Many specific projects have been completed. City has boulevards, bike/ped undercrossings,updated its Bicycle + Pedestrian Transportation Plan in 2012 bike lanes/routes on major arterials and streets,since the Nexus Study was conducted. This plan is the current spot bike/ped improvements.source of bike/ped project priorities. Note: (a) Projects listed in the 2004 Transportation Impact Fee Nexus Study and the 2007 Addendum to the Transportation Impact Fee Nexus Study. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 10 Report Organization The remainder of this report addresses the following steps in order to make the necessary findings for updating the City’s transportation impact fee program: 1. The level of future growth in Palo Alto in terms of residential dwelling units and new jobs is projected; 2. The number of PM peak-hour motor vehicle trips that would be generated by that growth is estimated; 3. The transportation impacts or deficiencies caused by those additional PM peak-hour trips are identified; 4. Projects that would mitigate or offset those impacts or deficiencies to the extent feasible are identified; 5. The cost of those projects is estimated; 6. A proposed impact fee to be charged to future growth is calculated. Chapter 2 covers the City’s projected growth, the trips it would generate, and their projected impacts. Chapter 3 presents the improvements and programs that would mitigate those impacts. Chapter 4 addresses the recommended transportation impact fee structure and recommended fee level. Chapter 5 summarizes the impact fees currently charged by other municipalities on the peninsula and in the South Bay. Chapter 6 summarizes the findings of this report. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 11 2. Projected Growth and Its Impacts This chapter describes the level of growth projected to occur in Palo Alto through the horizon year of 2030, the number of PM peak-hour motor vehicle trips expected to be generated by that growth, and the transportation impacts resulting from those additional motor vehicle trips. Projected Development The City of Palo Alto completed a planning effort to update its Comprehensive Plan in November 2017. The forecast year for the Comprehensive Plan Update is the year 2030. As part of that planning process, six hypothetical planning scenarios were developed in order to capture a range of possible outcomes stemming from different growth assumptions. Each of the different planning scenarios made different land use assumptions regarding household growth and job growth, as well as different assumptions regarding transportation investments and policies. These scenarios were analyzed in the February 2016 Draft EIR and the February 2017 Supplement to the Draft EIR. Based on the analysis of the six planning scenarios, the City Council adopted a Preferred Scenario for the Comprehensive Plan Update, which was covered by the Comprehensive Plan Update Final EIR, dated August 30, 2017. The Comprehensive Plan Update was adopted and the EIR was certified on November 13, 2017. On July 30, 2018, the City Council adopted by ordinance a citizen initiative measure amending the Comprehensive Plan to reduce the Preferred Scenario’s cap on Office/R&D development by half, from 1.7 million square feet to 850,000 square feet. Because this 50 percent reduction in the Office/R&D development cap would result in a change to the number of PM peak-hour trips generated by future development, this nexus study has been revised to reflect the revised Office/R&D limit. The City Council’s action to revise the Preferred Scenario in the Comprehensive Plan is referred to as the “Council Reduced Preferred Scenario” in this document. The growth assumptions for the City of Palo Alto, excluding its Sphere of Influence, under the Council Reduced Preferred Scenario are presented in Table 5. All of the data in this table and in the remainder of this chapter have been developed using the same methodology that was used for all the scenarios evaluated during the Comprehensive Plan Update process. The Council Reduced Preferred Scenario’s projections of housing and employment for the year 2030 include 3,983 new residential units and 7,321 new jobs (see Table 5). Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 12 Table 5 Projected Growth by the Year 2030 under the Council Reduced Preferred Scenario Source: Hexagon Transportation Consultants, Inc., 2019 The original Preferred Scenario in the Comprehensive Plan identified a range of 3,545 – 4,420 new residential units (with a midpoint of 3,983) and a range of 9,850 - 11,500 new jobs (with a midpoint of 10,675). The Council Reduced Preferred Scenario projection of 3,983 new housing units is the same as the midpoint of the range that was identified in the original Preferred Scenario, because no changes were made to the housing estimates. The Council Reduced Preferred Scenario projection of 7,321 new jobs is less than the range of 9,850 - 11,500 new jobs in the original Preferred Scenario. This reduction is the result of the reduction in the Office/R&D development cap. Projected Increase in PM Peak-Hour Motor Vehicle Trips The Comprehensive Plan Update process used the Palo Alto 2030 travel demand forecasting model to project the number of PM peak-hour motor vehicle trips that each of the six planning scenarios and the Preferred Scenario would generate. The same model has been used to project PM peak-hour trips under the Council Reduced Preferred Scenario. Palo Alto’s model is based on Santa Clara Valley Transportation Authority’s (VTA’s) travel demand forecasting model, which is based, in turn, on the Metropolitan Transportation Commission’s (MTC’s) regional model for the entire Bay Area. Palo Alto’s citywide model has calculated PM peak-hour traffic volumes projected to occur in the year 2030 based on the input land use assumptions shown in Table 5 above. As shown in Table 6, it is estimated that the Council Reduced Preferred Scenario would generate 3,229 additional PM peak-hour vehicle trips with origins and/or destinations within the City of Palo Alto in the year 2030. This projection does not include trips for which both the origin and the destination are outside Palo Alto and are “pass-through” trips of a regional nature. By way of comparison, the range of additional PM peak-hour trips estimated for the original Preferred Scenario was 3,710 – 4,693 and the midpoint was 4,202 PM peak-hour trips. Thus, the 3,229 PM peak- hour trips projected for the Council Reduced Preferred Scenario is less than the low end of the original Preferred Scenario’s projected range of PM peak-hour trips. Increase Under Existing Council Reduced Land Use Assumption Conditions a Preferred Scenario b % Increase Housing Units 28,545 3,983 14% Population c 65,685 9,444 14% Jobs 95,460 7,321 8% Notes: (a) From the Comprehensive Plan Update EIR, reflects 2014 conditions. (b) Increase by 2030, based on the Council Reduced Preferred Scenario, excluding the Sphere of Influence. (c) Based on a housing unit vacancy rate of 5 percent and an average household size of 2.41 persons per household in 2030. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 13 Table 6 Projected PM Peak-Hour Vehicle Trips Generated by the Council Reduced Preferred Scenario Source: Hexagon Transportation Consultants, Inc., 2019 Trip Reduction Due to TDM Plans One of the mitigation measures included in the Comprehensive Plan Update Final EIR for impacted intersections would require all new development projects above a certain size to prepare a Transportation Demand Management (TDM) Plan to reduce the number of peak hour motor vehicle trips generated by the project. The mitigation measure sets different trip reduction requirements for different areas of City, ranging from 20% to 45%. This TDM requirement was also included as one of the policies in the Comprehensive Plan Update itself. Mitigation Measure Trans-1A in the Final EIR reads as follows: “Adopt a programmatic approach to reducing motor vehicle traffic with the goal of achieving no net increase in peak-hour motor vehicle trips from new development, with an exception for uses that directly contribute to the neighborhood character and diversity of Palo Alto (such as ground- floor retail and below-market-rate housing). The program should, at a minimum:  Require new development projects above a specific size threshold to prepare and implement a Transportation Demand Management (TDM) plan to achieve at least the following reduction in peak-hour motor vehicle trips from the rates included in the Institute of Transportation Engineers’ Trip Generation Manual for the appropriate land use category and size. These reductions are deemed aggressive, yet feasible, for the districts indicated: o 45 percent reduction in the Downtown district o 35 percent reduction in the California Avenue area o 30 percent reduction in the Stanford Research Park o 30 percent reduction in the El Camino Real Corridor o 20 percent reduction in other areas of the city TDM plans must be approved by the City and monitored by the property owner or the project proponent on an annual basis. The Plans must contain enforcement mechanisms or penalties that accrue if targets are not met and may achieve reductions by contributing to citywide or employment district shuttles or other proven transportation programs that are not directly under the property owner’s control. Existing 2030 Land Use Scenario a Conditions Conditions Increase Council Reduced Preferred Scenario 47,206 50,435 3,229 Notes: (a) Based on the Council Reduced Preferred Scenario's growth in populations and jobs, excluding the Sphere of Influence. (b) PM Peak-Hour Vehicle Trips includes both single-occupant and shared ride vehicle trips. PM Peak-Hour Vehicle Trips b Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 14  Require new development projects to pay a Transportation Impact Fee for all those peak hour motor vehicle trips that cannot be reduced via TDM measures. Fees collected would be used for capital improvements aimed at reducing motor vehicle trips and motor vehicle traffic congestion.” The Transportation Impact Fee referred to in the second bullet point of the mitigation measure is the subject of this nexus study. For purposes of estimating the total citywide reduction in peak hour motor vehicle trips through implementation of TDM plans by new development projects, Hexagon has assumed that all projects would meet the reduction target for the area where they are located. Hexagon has used the PM peak-hour as the basis of analysis, since it is the basis of the existing citywide TIF and is typically more congested than the AM peak-hour. The number of PM peak-hour motor vehicle trips generated in each of the Traffic Analysis Zones (TAZs) used in the travel demand forecasting model was used as the basis for the appropriate trip reduction target for each area. When the amount of projected growth in each area and the appropriate trip reduction targets are taken into account, an estimated 1,044 PM peak-hour motor vehicle trips would be eliminated on a citywide basis. After the TDM reduction is accounted for, the future growth included in the Council Reduced Preferred Scenario would generate 2,185 PM peak-hour motor vehicle trips (see Table 7). This increase in vehicle trips represents 4.4% of the total PM peak-hour vehicle trips projected for Palo Alto in the year 2030. Table 7 Projected Increase in PM Peak-Hour Motor Vehicle Trips After TDM Reductions Source: Hexagon Transportation Consultants, Inc., 2019 Number of PM Peak-Hour Vehicle Trips Existing Conditions 47,206 2030 Conditions: Council Reduced Preferred Scenario a 50,435 Increase in PM Peak-Hour Vehicle Trips 3,229 Trip Reduction due to TDM Plans b (1,044) New PM Peak-Hour Vehicle Trips Generated 2,185 New Trips Generated as Percentage of Total 2030 Trips c 4.4% Notes: a Based on the growth assumptions in the Council Reduced Preferred Scenario. b Based on trip reduction targets for different areas of the city in Mitigation Measure TRANS-1a in the Comprehensive Plan Update FEIR. c The trip reduction of 1,044 is also subtracted from the total of 50,435 trips to calculate percentage. [2,185 / (50,435 - 1,044)=0.044] Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 15 Trips Generated by Exempt Uses As described in Chapter 1, the citywide transportation impact fee currently exempts certain land uses from payment of the fee. However, the Planning Department has indicated that the number of projects that have been included in the model’s 2030 growth estimates and that would be exempt from the TIF is negligible. Therefore, trips generated by exempt uses have not been deducted from the estimate of 2030 PM peak-hour vehicle trips. Projected Impacts Due to Growth As documented in the Comprehensive Plan Update Final EIR, all six of the planning scenarios examined would result in some significant transportation impacts. The Final EIR concluded that the Preferred Scenario would also result in significant and unavoidable transportation impacts, including impacts to intersections, to freeway segments, and to transit travel times (due to increased congestion). A significant impact to local residential streets (due to drivers avoiding increased congestion on arterials) was also projected but would be mitigated to a less than significant level through a traffic calming program. Construction of traffic calming improvements is one element of the impact fee expenditure program presented in the next chapter. The Council Reduced Preferred Scenario would generate fewer PM peak-hour trips than the original Preferred Scenario, but it would still result in transportation impacts because it would still generate additional traffic as a result of additional housing units and non-residential square footage. In order to ensure that there is a reasonable relationship between the impacts caused by the additional development and the amount of the impact fee imposed on that new development, the calculation of the impact fee is only based on new development’s fair share of the costs of proposed improvements. As shown in Table 7, new development would generate 4.4% of the PM peak-hour trips in 2030, so 4.4% is the fair share of transportation improvement costs that new development should fund through the citywide TIF. By not requiring new development to pay for 100% of the cost of the transportation improvements included in the next chapter, the nexus between the growth assumptions of the Council Reduced Preferred Scenario and the proposed transportation impact fee is maintained. The purpose of all the improvements presented in the next chapter is to mitigate or offset to the extent feasible the impacts of the Council Reduced Preferred Scenario’s projected growth on all components of the transportation system, both through modifications to the roadway network and by reducing the number of single-occupant vehicle trips. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 16 3. Transportation Impact Fee Improvements This chapter presents the improvements proposed by the City to mitigate to the extent feasible the impacts of increased congestion caused by future growth. The growth in demand for the transportation system will be accommodated by the development of a safe, efficient, and environmentally sensitive multimodal transportation system. An effective multimodal transportation system will allow people to choose modes of transportation other than the single-occupant vehicle and will make bicycling, walking, taking transit, and ridesharing attractive, safe, cost-competitive and time-competitive choices. As envisioned by the City’s Sustainability and Climate Action Plan and the Comprehensive Plan Update, by providing adequate infrastructure for all modes, the City’s multimodal transportation system will lead to increases in alternative mode usage and reduce the number of motor vehicle trips. The City’s goal is to provide access by all transportation modes to employment, housing, shopping, schools, health care, entertainment, dining, and other common trip purpose destinations. Users of the transportation system would not have to rely on a car to get where they need to go. Scope of Improvements and Fees With the over-arching goal of transportation system balance, the City has included a very broad range of improvements in its list of projects to be funded through Transportation Impact Fees. It focuses on bicycle and pedestrian facilities, and also includes intersection and roadway improvements that would mitigate impacts identified in the Comprehensive Plan Update Final EIR and other recent traffic studies, such as the Expressway Plan 2040 and the Page Mill Expressway Corridor Study Report. The expenditure plan is rooted in the City’s policies of encouraging alternative mode use, discouraging single-occupant vehicle trips, improving traffic flow without major capacity enhancements, and encouraging motorists to use arterials rather than local residential streets. Transitioning to a Single Citywide TIF As described in Chapter 1, there are currently four separate Transportation Impact Fees and four separate lists of improvements to be funded with them. The improvements to be funded with the San Antonio / West Bayshore and the Stanford Research Park / El Camino Real impact fees, both of which were initiated in the 1980s, were focused primarily on adding lanes at key intersections. The Charleston – Arastradero Corridor impact fee is dedicated to improvements that will enhance bicycle and pedestrian safety in that corridor. The citywide impact fee has been spent on upgrading the City’s traffic signals and on bicycle and pedestrian facilities. Hexagon recommends transitioning to a single citywide TIF rather than the current structure of three fees that apply in specific areas and one citywide fee. The City should identify improvements in each Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 17 area that can be funded with the money that has already been collected for that area, but collect TIFs in the future (after completion of specified projects) on a citywide basis. The three area-specific fees would be allowed to “sunset” when their current balances are expended on appropriate projects. The reasons for this recommendation are as follows: 1. Areas that are (or will be) past their identified purpose: The development identified in the San Antonio/West Bayshore EIR and in the original nexus study for the San Antonio/West Bayshore area has already occurred. No funds have been spent out of the San Antonio/West Bayshore area funds in a very long time, and the city has either completed the projects on the list or no longer plans to do them. Thus, this area-specific fee is obsolete since the area has already been redeveloped. Of the four projects defined in the Palo Alto Municipal Code for the Stanford Research Park / El Camino area, two are already complete (intersection of Foothill/Arastradero/Miranda and intersection of Middlefield/Oregon Expressway) and two will completed soon (Page Mill/El Camino and Page Mill/Hanover). The City and the County have recently planned further improvements for the Foothill/Arastradero/Miranda intersection complex, but the project defined when the project list for this fee was updated in 2002 (adding an additional westbound lane on Arastradero at Miranda to provide two left-turn lanes and a right-turn lane at Foothill) was completed years ago. The nexus study for the Charleston-Arastradero fee stated that it was intended to fund a specific project, and the fee would terminate when that project was constructed. After the Charleston- Arastradero Corridor Project has been completed, the TIF that was created to help fund it should be eliminated, as its identified purpose would be accomplished. 2. Overlapping areas of the three specific area fees: Because the Charleston/ Arastradero area overlaps with portions of the San Antonio/West Bayshore area and the Stanford Research Park/El Camino Real area, it is now possible for one parcel to be subject to three different fees (two area-specific TIFs and the citywide TIF), while another parcel is only subject to the citywide TIF. All three of the specific area fees obviously overlap with the citywide fee. Most cities that have defined specific areas for TIFs do not have overlapping areas, whereby projects are subject to multiple transportation-related impact fees. Cities that define specific areas for impact fees (even if they do not overlap) need to be especially careful that the boundary defined for a fee is based on clear and recent data indicating that the projects within that area will result in impacts whereas projects outside the area will not. It should be noted that the specific area TIFs and the citywide TIF each fund different improvements; so developments that are subject to multiple impact fees pay only their proportional share of the cost of each improvement. 3. Equity benefits with a single citywide TIF: When the citywide TIF was established, the projects it included (TDM program, shuttle, bike/ped projects) were clearly differentiated from the types of projects that were funded by the two older area fees (San Antonio/West Bayshore and Stanford Research Park), which were specific intersection improvements (capacity enhancements). Thus, certain areas having to pay two fees made sense, because they funded very different types of improvements. The types of improvement projects that are currently being proposed are a mixture citywide. It is hard to justify that Stanford Research Park/El Camino Real developments pay for specific improvements in that area and pay for improvements across town when other development areas don’t have the same burden. The impacts to be mitigated by the updated impact fee are those identified in the Comprehensive Plan Update FEIR, which is a citywide document. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 18 4. Administrative Complexity and Project Readiness: It is clear that having four separate fees makes it harder for staff to keep project lists current for each fee, to collect funds, and to track funds available for specific projects. Hexagon believes that transitioning to a single list of TIF- eligible projects would simplify administration and would allow the City to spend money on projects in a more timely way, rather than waiting for a project in a specific area to become active. Geographic equity can be maintained by funding projects from all parts of the city from the single list. The only area-specific fee that Hexagon recommends be retained in the near-term is the Charleston – Arastradero Corridor impact fee, because it is being used to fund a specific project that is not yet completed. When the improvements identified in the Charleston - Arastradero Corridor Plan are fully implemented, we recommend that this fee be terminated, as proposed in the original nexus study. Hexagon recommends that the current balances in the San Antonio / West Bayshore and the Stanford Research Park / El Camino Real impact fee accounts be applied towards the cost of planned improvements in their respective areas. Recently proposed projects for both specific areas were described in Chapter 1. As provided for in the municipal code, the Chief Transportation Official can propose “alternative improvements in the area,” subject to the City Council’s approval. After the current TIF balances have been expended and the projects identified for their use have been completed, we recommend that the City eliminate the three specific area fees and charge only a citywide TIF to new development projects. Improvements To Be Funded by Transportation Impact Fees Table 8 lists the improvements that will be funded through a citywide transportation impact fee, the estimated total cost of each improvement, and an estimate of the City’s share of the cost (local match). Appendix A includes a complete project description for each project listed in Table 8. The list has been prepared by City staff to achieve a balanced transportation network and includes projects identified in the Comprehensive Plan Update, the Bicycle and Pedestrian Transportation Plan, the Page Mill Corridor Study, the Draft Expressway Plan 2040, and the City’s Capital Improvement Program. The list has been developed to benefit all parts of the City. All cost and local match estimates have been provided by City staff, based on the most recent planning estimates available. For projects for which an annual expenditure amount has been provided, the total cost assumes 12 years (2019 – 2030) of that annual amount. As shown in Table 8, the total cost of the improvements is $935,100,000, and the estimated City share of these improvements is $391,600,000. The City’s share of project costs is based on a 10% or 20% local match requirement for projects where federal, state, or county funding is anticipated, or in some cases, the balance required after expected outside grants. Four of the projects listed may also receive funding from the San Antonio / West Bayshore TIF Fund. Direct developer funding will also fund a portion of the cost for a few of the listed improvement projects. The direct developer funding is generally set forth in individual development agreements and is intended to reflect a fair-share contribution towards significant project impacts. Hexagon recommends that fair-share payments towards improvements that are included in the City’s impact fee program be credited (in the amount of any such payment) towards the project’s TIF payment, in order to avoid double-charging developers for planned improvements. No credit would be given for off-site improvements that are not included in the impact fee expenditure plan. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 19 Table 8 Citywide Transportation Impact Fee Improvements Source: Hexagon Transportation Consultants, Inc., 2019 Total City's Est. Est. Project Share Citywide Transportation Impact Fee Projects Cost a of Cost a Alma Street Enhanced Bikeway 4,000,000$ 4,000,000$ Bicycle and Ped Transportation Plan Implementation: $4 M/year 48,000,000$ 48,000,000$ Bol Park Path Reconstruction 2,500,000$ 1,250,000$ California Ave Caltrain Undercrossing ADA Retrofit/Reconstruction 20,000,000$ 10,000,000$ Citywide Traffic Improvements (signage, striping): $500K/year 6,000,000$ 6,000,000$ Citywide Traffic Calming Program: $500K/year 6,000,000$ 6,000,000$ El Camino Real Pedestrian Safety and Streetscape Project 5,300,000$ 600,000$ Embarcadero Rd at El Camino Real Improvements 6,000,000$ 6,000,000$ Embarcadero Road at East Bayshore Road Traffic Signal 900,000$ 700,000$ Fabian Way Complete Street 1,200,000$ 1,200,000$ Foothill Expwy and Arastradero Rd and Miranda Ave Improvements 60,000,000$ 6,000,000$ Hansen Way Connector Path 2,000,000$ 1,000,000$ Middlefield Rd Enhanced Bikeway 2,000,000$ 2,000,000$ Middlefield Rd Midtown Corridor Improvements 2,100,000$ 2,100,000$ Page Mill Rd at Porter Drive Intersection Improvements 500,000$ 50,000$ Page Mill Road Expresssway Corridor Improvements 97,000,000$ 9,700,000$ Palo Alto Intermodal Transit Center 50,000,000$ 20,000,000$ Railroad Grade Separationsb 600,000,000$ 250,000,000$ San Antonio Rd/Ave Enhanced Bikeway 2,000,000$ 1,000,000$ South Palo Alto Caltrain Pedestrian/Bicycle Grade Separation 10,000,000$ 10,000,000$ Traffic Signal and Intelligent Transportation Systems: $700K/year 8,400,000$ 4,800,000$ Transit Priority/Traffic Signal Improvements 1,200,000$ 1,200,000$ Total 935,100,000$ 391,600,000$ Percentage to be Funded by Citywide TIF (4.4%)17,230,400$ Notes: (b) This is a placeholder estimate. The actual cost of the project will be updated pending the City Council decision on a Preferred Alternative. Current project alternative costs range from $200,000,000 to $3,800,000,000. (a) Both the estimated project cost and the estimated city share of the project cost are planning level estimates. For projects with an annual capital cost, the total estimated cost is based on 12 years (2019-2030). Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 20 California’s Mitigation Fee Act (AB 1600) does not permit new development to pay for existing deficiencies. A reasonable relationship must be established between the amount of the impact fee and the improvement costs that are attributed to future development. Because virtually all the improvements listed in Table 8 are projects that the City would pursue even if there were no additional growth in Palo Alto, it would not be appropriate to require future development to pay for the City’s entire share of the improvement costs. Since the number of additional PM peak-hour trips to be generated by new development represents 4.4% of the total PM peak-hour trips in the year 2030, as was shown in Table 7, that is the percentage of the City’s share of total project costs that should be funded through an impact fee. As shown in Table 8, 4.4% of the City’s share of the improvement costs is $17,230,400. This is the amount that is used to calculate the citywide transportation impact fee. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 21 4. Recommended Fee Program This chapter presents the recommended fee structure and recommended fee level for the citywide Transportation Impact Fee. Motor Vehicle Trip-Based Fee When the citywide impact fee was adopted in 2007, it was decided to charge fees on a per-trip basis, based on PM peak-hour motor vehicle trips, rather than on a per residential unit or per square foot basis. Levying fees on a per trip basis provides the closest possible nexus between the traffic impact caused by a new development project and the amount that it is required to pay. Projects that would generate little additional traffic on the City’s roadway network are not required to pay as much as projects that would generate more traffic. Both the City’s and VTA’s standards for preparing Transportation Impact Analyses (TIAs) require preparation of peak hour trip generation estimates. Thus, an estimate of PM peak-hour trip generation is prepared for most development projects proposed in the City of Palo Alto as part of a TIA or, in the case of some small projects, a feasibility study or traffic operations study. These trip generation estimates have been used as the basis for calculating the citywide TIF during the approval process for all development projects since the citywide TIF was established in 2007, and would continue to be used for this purpose in the future. In the case of proposed projects that are so small that the City does not require a trip generation estimate to be prepared, City staff is responsible for calculating PM peak-hour trip generation, using the same methodology as used for larger projects. Methodology for Estimating PM Peak-Hour Trips The City currently requires that a development project’s estimate of PM peak-hour trips follow the guidelines in VTA’s Transportation Impact Analysis Guidelines (TIA Guidelines). These guidelines require use of the trip generation rates in the most recent version of the Institute of Transportation Engineers’ (ITE) Trip Generation Manual, or another documented source when the ITE manual does not include an appropriate rate. The most recent version of ITE’s Trip Generation Manual is the 10th Edition, published in 2017. As discussed in Chapter 2, one of the mitigation measures identified in the Comprehensive Plan Update Final EIR would require projects to develop strong TDM Plans to achieve specific reductions in PM peak-hour motor vehicle trips from the ITE rates. The target reductions vary, depending on where Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 22 the project is located, and would be enforced through monitoring and penalties. These targets take into account each district’s proximity to transit services provided by Caltrain, VTA, SamTrans, the Palo Alto Shuttle, Stanford’s Marguerite service, and the Dumbarton Express. The full text of the mitigation measure was provided in Chapter 2, but for ease of reference a portion of it is repeated here.  Require new development projects above a specific size threshold to prepare and implement a transportation demand management (TDM) plan to achieve at least the following reduction in peak-hour motor vehicle trips from the rates included in the Institute of Transportation Engineers’ Trip Generation Manual for the appropriate land use category and size. These reductions are deemed aggressive, yet feasible, for the districts indicated: o Downtown area: 45 percent reduction o California Avenue area: 35 percent reduction o Stanford Research Park: 30 percent reduction o El Camino Real Corridor: 30 percent reduction o Other Areas: 20 percent reduction TDM plans must be approved by the City and monitored by the property owner or the project proponent on an annual basis. The plans must contain enforcement mechanisms or penalties that accrue if targets are not met and may achieve reductions by contributing to citywide or employment district shuttles or other proven transportation programs that are not directly under the property owner’s control. If the City requires development projects to implement TDM Plans that meet these targets, then it will also need to allow those projects to reduce their trip generation estimates by these same percentages for impact fee calculation purposes. These reduction percentages are substantially higher than the standard trip reduction percentages set forth in VTA’s TIA Guidelines in Table 1, “Standard Auto Trip Reduction Rates (page 33)” for proximity to transit, preparation of a TDM Plan, and mixed-use developments. However, the TIA Guidelines also allow projects to use target-based trip reductions instead of the standard trip reductions when estimating a project’s trip generation. In order to avoid potential confusion, Hexagon recommends that development projects use the target-based trip reduction approach when estimating trip generation in a TIA, so that the PM peak-hour vehicle trip estimate in the project’s TIA is the same as the estimate used for impact fee calculation purposes. No additional reductions should be taken beyond the target percentage established by the City. If, however, a project uses the standard reduction percentages in the TIA Guidelines in preparing a TIA, the PM peak-hour vehicle trip generation estimate in the TIA will be higher than the estimate for TIF calculation purposes, because the standard trip reduction percentages are lower than the City’s targets. Calculation of the Transportation Impact Fee The proposed amount of the citywide Transportation Impact Fee has been calculated by dividing the cost of the improvements to be funded by the TIF by the number of additional PM peak-hour motor vehicle trips. The cost of the improvements to be funded with impact fees, as shown in Table 8, is $17,230,400. This amount represents 4.4% of the City’s share of the total cost, so that there is a reasonable relationship between the cost being borne by projected development and the traffic generated by that development. The projected number of trips generated by new development, as shown in Table 7, is 2,185 additional PM peak-hour vehicle trips. The resulting impact fee is $7,886 per net new PM peak-hour motor vehicle trip ($17,230,400 / 2,185 = $7,885.77). Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 23 This fee would be applied to all development projects, except those exempt from the TIF, throughout the City of Palo Alto. Projects within the Charleston-Arastradero Corridor Area would also be required to pay that area-specific fee until the corridor project is completed and the fee is terminated. The citywide TIF rate for FY 2018-2019 is $3,700 per net new PM peak-hour vehicle trip. The proposed rate of $7,886 is 112% higher than the current rate. If the City no longer charges fees for the San Antonio/West Bayshore area or the Stanford Research Park/El Camino Real area, the difference between the amount collected in total transportation impact fees under the existing fee structure and under the proposed fee structure will vary, depending on the location of the development project. The amount that would be collected also depends, of course, on the size and trip generation rate associated with the existing land use that would be replaced, if any. It is also important to note that the proposed TIF will be collected on an estimated 2,185 PM peak-hour vehicle trips, which is significantly fewer trips than the 2007 “Addendum to the Palo Alto TIF Nexus Study” used in its fee calculation (4,029 PM peak-hour trips). Because the Comprehensive Plan Update requires projects in different areas of the city to reduce their trips by from 20% to 45%, new development will generate fewer trips than had been assumed in the past. From the standpoint of reducing traffic congestion and achieving the goals in the City’s Sustainability and Climate Action Plan, this is a clear advantage. It also means that the “per PM peak-hour vehicle trip” TIF rate will be higher than in the past, but that the TIF will be collected on fewer trips. Indexing the TIF The amount of all four of the existing transportation-related impact fees is adjusted annually to reflect inflation. The Construction Cost Index, published by Engineering News Record, is used to adjust the amount of the fees. It is recommended that fee levels continue to be adjusted annually, in line with the Construction Cost Index. Since most of the improvements to be funded with the citywide TIF are capital projects for which cost estimates will increase with time, indexing the TIF will allow the fees collected to also increase over time in order to keep up with construction costs. In addition, the City should continue to follow the requirements of the Mitigation Fee Act with regard to reporting annually on expenditures from the TIF accounts and making findings every five years regarding the continuing need for development impact fees that remain unexpended or uncommitted five or more years after deposit of such fees. Exemptions from the TIF The citywide TIF currently exempts certain types of development from the TIF, consistent with the City’s impact fees for parks, community centers, libraries, and other community facilities. The existing exemptions are land uses that the City wishes to encourage. As stated in Chapter 1, the exempt uses include:  Single-family home remodels or additions,  Housing projects with 100% affordable housing units,  Below Market Rate (BMR) housing units beyond the minimum number required by the City’s BMR housing program,  Public buildings and schools,  Retail, personal service, or automotive service that is 1,500 s.f. or smaller,  Daycare, nursery schools, and preschools,  On-site cafeteria/recreation/childcare facilities for employee use only,  Hazardous materials storage,  Junior accessory dwelling units and certain accessory dwelling units established by garage/carport conversion. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 24 For reasons of administrative simplicity and consistency with other Palo Alto development impact fee programs and to continue to encourage development of the exempted land uses, the City should continue the above exemptions. As noted in Chapter 1, replacement single-family homes are not subject to the citywide TIF, because a new home would generate the same number of PM peak-hour vehicle trips as an older home, based on the ITE trip generation rates. The residential uses that are subject to the citywide TIF include: new homes on an empty parcel, second units not otherwise exempt, multi-family residential projects, and required Below Market Rate units. Exemption for Accessory Dwelling Units The Palo Alto City Council approved an ordinance regarding Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs), also referred to as second units, on May 8, 2017, in response to recent state legislation and so as to provide more variety in the City’s housing stock and additional affordable housing opportunities. The City Council approved a subsequent ordinance on December 17, 2018 that exempt JADUs and certain ADUs established by garage/carport conversions. In light of these recent changes, the City may also wish to reconsider its existing policy of charging a TIF on second units that are not otherwise exempt. Adding these ADUs to the list of exemptions to the TIF would be consistent with the code amendments designed to reduce the cost of creating such units. There is no clear source of revenue that would replace the revenue that would be lost by expanding the exemption from the TIF to all ADUs. The City’s need for funding to address transportation needs would need to be balanced against the City’s desire to increase affordable housing opportunities when deciding whether to make this change. Exemption for Retail Uses The City currently exempts retail, personal service, and automotive service projects that are less than 1,500 square feet from the TIF, but it may wish to consider increasing the size of retail projects that are exempt from the TIF or establishing a lower TIF rate for neighborhood-serving retail development. Although very large regional destination retail projects tend to have large traffic impacts, smaller projects may actually facilitate shorter shopping trips by residents, less congestion, and reduced vehicle miles travelled (VMT). Even though retail projects have high trip generation rates, the traffic impacts of neighborhood-serving retail can be fairly low because of short trip lengths. Depending on where a retail project is located, it may serve to reduce VMT, if its location allows some people to drive shorter distances than they otherwise would to a shopping destination. Shorter trips are also more likely to be made by walking or bicycling. Retail projects also generate sales tax revenue for a municipality. The ITE average trip generation rate for retail (category 820 in the 10th Edition of the Trip Generation Manual) is 3.81 PM peak-hour vehicle trips per thousand square feet (KSF). This is a much higher rate than the PM peak-hour vehicle trip rates for residential or office uses. Based on the proposed TIF of $7,886 per net new PM peak-hour trip, this amounts to a TIF of $30,046 per thousand square feet for retail projects, before accounting for any TDM trip reduction and before providing credit for any existing land use. In parts of the city where a 20% TDM reduction is required, the TIF would be the equivalent of $24,037 per thousand square feet. On the El Camino corridor, the TIF would be the equivalent of $21,032 per thousand square feet after accounting for the required 30% TDM reduction. In the downtown district, the TIF would be the equivalent of $16,525 per thousand square feet after accounting for the required 45% TDM reduction in that area. Given that even fairly small retail developments or retail components of mixed-use developments typically include several thousand square feet, such a high impact fee may serve as a disincentive to such development. Further, it may Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 25 be challenging for some retail projects to achieve the higher TDM reductions, since it is generally not feasible to institute TDM measures that apply to customers. Thus, the City may wish to consider increasing the size of retail projects that it exempts from the TIF or reducing the TIF for neighborhood-serving ground-floor retail projects. Hexagon recommends reducing the TIF rate by at least 50% (from the proposed level of $7,886 to $3,943 or less) for retail projects that are less than 50,000 square feet. However, as with accessory dwelling units, there is no clear source of revenue that would replace the revenue that would be lost by exempting somewhat larger retail projects from the TIF. The City’s need for funding to address transportation needs would need to be balanced against the City’s desire to encourage neighborhood-serving ground-floor retail uses when deciding whether to make this change. Applying the TIF to Vacant Parcels In addition to the trip reductions described above, development projects typically receive credit for the trips generated by existing uses on the project site, in accordance with VTA’s TIA Guidelines. For example, if a proposed project would generate 70 PM peak-hour trips and the existing use on the site generates 50 PM peak-hour trips, then the net new trips generated would be 20 PM peak-hour trips. However, if the building on a site has been vacant for at least two years, then it is recommended that the credit for existing uses not be given when calculating the Transportation Impact Fee. To extend the above example, if the existing structure on the site has been unoccupied for over two years, then the fee should be calculated based on the full 70 PM peak-hour trips that would be generated. The rationale for this is that the project would generate 70 new trips compared to recent and existing conditions, regardless of the site’s historical use. The rationale for two years as the minimum period of vacancy is that it is consistent with VTA’s TIA Guidelines requiring traffic studies to use traffic counts that are no more than two years old. Applying the TIF on Changing Land Uses Under the existing citywide impact fee, if a new use replaces a use that was exempt from the TIF, the trips generated by the exempt use cannot be subtracted from the proposed trips when the TIF is calculated. Further, the TIF is applied when the land use on a given parcel changes, due to the wide variation in trip generation rates for different uses. The TIF for changing land uses is triggered when a permit for construction, a zoning change, or a conditional use permit is required. Hexagon recommends that these provisions in the City’s current method for calculating the fee be retained. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 26 5. Transportation Impact Fees in Other Cities In order to consider the proposed citywide transportation impact fee of $7,886 per PM peak-hour trip in the context of TIFs charged by other cities in the Bay Area, Hexagon has compiled information on current TIF levels in nearby cities. Our survey focused on nearby cities on the Peninsula and in the South Bay in order to provide relevant data on existing fee amounts in the vicinity of Palo Alto. Transportation impact fees in San Francisco are also discussed. Most, but not all, nearby cities currently have a Traffic/Transportation Impact Fee. Cities that do not currently have a TIF include East Palo Alto, Belmont, and Foster City. However, East Palo Alto has recently conducted a nexus study, and it is likely that a TIF will be adopted there in the near future. The TIF in most cities is provided on a per square foot basis or per dwelling unit basis, rather than on a per vehicle trip basis. In those cases, the underlying nexus study typically has calculated a per trip amount and then converted it to a rate for common land uses, using the trip generation rates in the ITE Trip Generation Manual. Sometimes a per trip rate is also provided for projects that do not fall into one of the land uses for which rates have been provided. Key distinguishing points about each city’s TIF program follows the TIF summary presented in Table 9. In order to facilitate the comparison of Palo Alto’s citywide TIF with TIFs charged in other municipalities that specify their TIF on a per unit or square footage basis, Hexagon has converted Palo Alto’s proposed per PM peak-hour vehicle trip rate to a per thousand square feet (KSF) rate and per dwelling unit rate for the land uses most commonly used by other cities in their TIF programs. These have been calculated with the most recent ITE trip generation rates for the PM peak-hour, as follows (the ITE land use code for each is shown in parentheses):  Single family home (210): 0.99 per dwelling unit  Multi-family housing (Low-Rise 220): 0.56 per dwelling unit  Office (710): 1.15 per thousand square feet (KSF)  R&D (760): 0.49 per KSF  Industrial (Light Industrial 110): 0.63 per KSF  Retail (820): 3.81 per KSF  Hotel (310): 0.60 per room It is important to emphasize that Palo Alto’s proposed citywide TIF would not be charged on a per dwelling unit or per KSF basis, as shown in Table 9, but on a per PM peak-hour trip basis. The rates for different land uses in Table 9 for Palo Alto have been calculated so that a comparison with other cities’ rates is possible. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 27 Because the City would require projects to achieve a trip reduction based on a project’s location, Table 9 also presents the calculated TIF rate with a 20%, 30%, 35% and 45% reduction, corresponding to the TDM trip reduction targets in the Comprehensive Plan Update. These rates illustrate the range of fees on a per unit basis and per KSF basis after accounting for these required TDM trip reductions. As shown in Table 9, the calculated rate for retail uses would be $30,046 per thousand square feet ($7,886 times the retail trip generation rate of 3.81 PM peak-hour trips per thousand s.f.), before any TDM reductions are accounted for, if the City does not reduce the retail TIF rate or exempt retail projects below a specified size, as discussed in the previous chapter. The rate per thousand square feet for retail uses would be substantially higher than the rate for other non-residential uses because the PM peak-hour trip rate for retail uses is so much higher. The three area-specific TIFs are not shown in Table 9 because it is recommended that Palo Alto transition to a single citywide TIF. If they are also considered, then the differential between Palo Alto’s TIF program and the amounts charged by many other cities would be even greater. Highlights of Other Cities’ TIF Programs Because every city’s TIF program is unique, we have summarized below some of the key points about each city included in Table 9. Menlo Park Menlo Park is the only Peninsula city in our survey that has both a citywide TIF and an overlapping area-specific TIF, like Palo Alto currently has. Thus, it is the only other city where a parcel may be subject to more than one TIF. The citywide TIF is provided on a per unit or per square foot basis for common land uses and as a “per PM peak-hour trip” rate of $3,268 for all other land uses. The supplemental TIF is applicable to properties within the El Camino Real/Downtown Specific Plan Area, and is specified as $399 per PM peak-hour trip. Even when Menlo Park’s two TIFs are combined, the rate per PM peak-hour trip is comparable to Palo Alto’s existing citywide PM peak-hour rate, and far less than the proposed citywide rate. Redwood City Redwood City provides two different TIF rates for each land use category: a downtown rate and a non- downtown rate. The downtown rates are generally 25% lower than the non-downtown rates and take into account the downtown area’s proximity to transit, better bicycle and pedestrian connectivity, and the City’s requirement that downtown projects prepare a TDM Plan. The City’s fee schedule provides fee rates for 24 different land uses. San Carlos San Carlos provides TIF rates for 11 different land uses, and includes different rates for apartments and condominiums. Based on the rate of $3,052 for single-family residential uses and the fact that the ITE trip generation rate for that use in the PM peak-hour is 0.99, it can be assumed that the underlying per PM peak-hour rate is $3,083, which is less than Palo Alto’s current rate of $3,700 and much less than the proposed rate of $7,886. San Mateo San Mateo provides TIF rates for five different land uses, including a rate of $3,891 per thousand s.f. of office space and $7,282 per thousand s.f. for retail space. San Mateo recently conducted a new nexus study and updated its TIF rates. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 28 Table 9 Transportation Impact Fees in Nearby Cities Per PM Light Peak Hour Single Family Multi-Family Office R&D Industrial Retail Hotel City or Area within City Trip Per d.u.Per d.u.Per KSF Per KSF Per KSF Per KSF Per Room Palo Alto a Current Citywide TIF 3,700$ 3,663$ 2,072$ 4,255$ 1,813$ 2,331$ 14,097$ 2,220$ Proposed TIF, no TDM reduction 7,886$ 7,807$ 4,416$ 9,069$ 3,864$ 4,968$ 30,046$ 4,732$ Proposed TIF less 20% TDM reduction 6,246$ 3,533$ 7,255$ 3,091$ 3,975$ 24,037$ 3,785$ Proposed TIF less 30% TDM reduction 5,465$ 3,091$ 6,348$ 2,705$ 3,478$ 21,032$ 3,312$ Proposed TIF less 35% TDM reduction 5,075$ 2,871$ 5,895$ 2,512$ 3,229$ 19,530$ 3,076$ Proposed TIF less 45% TDM reduction 4,294$ 2,429$ 4,988$ 2,125$ 2,732$ 16,525$ 2,602$ Menlo Park Citywide 3,268$ 3,301$ 2,026$ 4,870$ 3,500$ 2,400$ 4,870$ 1,834$ Supplemental Downtown 399$ per PM peak hour trip within ECR/Downtown Specific Plan area Redwood City Non-Downtown 1,617$ 992$ 2,380$ 1,710$ 1,550$ 940$ 945$ Downtown 1,212$ 744$ 1,790$ 1,280$ 1,160$ 2,960$ 709$ San Carlos 3,052$ 1,892$ 4,547$ 3,266$ 2,228$ 11,323$ 1,831$ San Mateo 4,239$ 2,602$ 3,891$ 2,535$ 7,282$ Mountain View North Bayshore Area 23,260$ 23,260$ 2,430$ 2,071$ Citywide, except North Bayshore 2,700$ 4,671$ 2,616$ 4,990$ 4,990$ 4,990$ 4,990$ 2,889$ Los Altos 6,774$ 4,159$ 9,994$ 12,409$ Sunnyvale b Moffett Park 5,958$ 6,375$ 6,375$ 5,779$ 5,526$ 3,575$ South of S.R. 237 3,114$ 3,114$ 1,931$ 4,640$ 3,332$ 3,021$ 5,776$ 1,868$ Cupertino 6,236$ 6,177$ 3,830$ 17,400$ 9,940$ 3,387$ Los Gatos c (daily trip rate)930$ 8,779$ 6,808$ 9,058$ 10,472$ 4,613$ 35,108$ 7,775$ Santa Clara 1,181$ 1,169$ 520$ 1,360$ 1,360$ 740$ 4,500$ 709$ San Jose North San Jose Area d 15,410$ 9,677$ 7,742$ 14,440$ 19,880$ 4,299$ Evergreen-East Hills Area 15,148$ 13,170$ 13,170$ US 101/Oakland Ave/Mabury Rd 35,767$ per PM peak hour trip that would use one of the improved interchanges I-280/Winchester Blvd.25,641$ per PM peak hour trip that would use the proposed off-ramp improvement Fremont e 2,417$ 2,417$ 5,375$ 3,859$ 3,896$ 7,359$ 2,201$ Sources: TIF amounts are from each city's website. (a) The Palo Alto citywide TIF is on a per PM peak trip basis. TIF amounts for specific land uses have been calculated using ITE trip generation rates to facilitate comparison with other cities' fees. Derived rates for different land uses also shown with TDM reductions that would apply In downtown (45%), California Ave. (35%), Stanford Research Park and El Camino corridor (30%), and the rest of the city (20%). Retail rates are based on the ITE trip generation rate and do not include any reduced rate or exemption. (b)Sunnyvale applies its R&D rate to office uses in Moffett Park. Retail rates reflect 50% reduction from ITE trip generation rates. (c) Los Gatos specifies its TIF as $930 per DAILY trip. Amounts for specific land uses have been calculated using DAILY ITE trip generation rates and $930 per daily trip, and do not reflect any TDM reductions. (d) Retail uses under 100,000 square feet in North San Jose are exempt from TIF. (e) Fremont specifies TIF amounts for residential uses based on the number of bedrooms. Amount shown is for 2-3 bedroom units. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 29 Source: Hexagon Transportation Consultants, Inc., 2019 Mountain View Mountain View adopted a citywide TIF for the first time in September 2018, as a means of funding the projects included in its recently adopted Multimodal Improvement Plan. This new citywide TIF is notable for setting the same rate ($4,990 per KSF) for office, R&D, light industrial, and retail uses. Mountain View established the North Bayshore Development Impact Fees in 2016 for transportation, water, and sewer purposes. This fee applies only in the North Bayshore area of Mountain View, and the transportation fee is specified for Office/R&D, retail, and hotel uses. Its fee of $23.26 per square foot for office and R&D uses is the second highest rate in our survey (only the fees in San Jose are higher). The rates for retail and hotel uses are much more moderate, since the city is trying to encourage those uses within the North Bayshore area in order to reduce overall vehicle miles traveled (VMT) to and from the area. Los Altos Los Altos specifies Traffic Impact Fees for five different land uses: single-family residential, multi-family residential, senior residential units, commercial, and office. Its rates for most uses are higher than Palo Alto’s current rates (as they have been derived from its current per PM peak-hour trip fee). When compared to the proposed Palo Alto rates before TDM reductions are accounted for, Los Altos’ rate for office uses is higher, its rates for residential uses are lower, and its rate for retail uses is much lower than Palo Alto’s rates. Sunnyvale The City of Sunnyvale recently completed a new nexus study and approved new TIF rates. Sunnyvale has two different TIF rates: one for the area south of State Route 237 (SR 237) and one for the area north of SR 237. Rates are significantly higher for the area that is north of SR 237, commonly referred to as Moffett Park. For uses that are not otherwise specified, the per PM peak-hour trip fee is $3,114 for the area south of 237 and $5,958 for the area north of 237. In Moffett Park, the City typically applies the R&D rate to office development projects. The City’s retail rate for most of the City reflects a substantial reduction from the ITE rates: $5,776 per KSF. In Moffett Park, the City charges $5,526 per KSF for neighborhood retail and $11,052 for destination retail. Like Mountain View, the City is trying to encourage more neighborhood retail within its main office park area, so that employees do not have to leave the area to shop. Cupertino The City of Cupertino adopted a citywide Transportation Impact Fee for the first time in 2017 after completion of a nexus study. TIF rates are specified for five common land uses, and a rate of $6,236 per PM peak-hour trip is provided for other uses. Cupertino’s TIF rates for residential uses are lower than Palo Alto’s “pre-TDM reduction” rates for single-family and multi-family housing, and roughly the same as Palo Alto’s rates for those uses after a 20% TDM reduction. However, Cupertino’s TIF rate for office uses, $17,400 per thousand square feet, is much higher than Palo Alto’s proposed rate, and its rate for retail uses, $9,940 per thousand square feet, is much lower than Palo Alto’s proposed rate for that use. Los Gatos Los Gatos is the only city in this survey that specifies its TIF solely on a “per trip” basis (as does the Palo Alto citywide TIF), and does not specify TIF rates for any land uses. However, Los Gatos’s TIF is charged on a per daily trip basis, rather than a per PM peak-hour trip basis. Because most land uses have a daily trip rate that is many times the PM peak-hour trip rate, the Los Gatos rate of $930 per daily Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 30 trip is higher than Palo Alto’s existing rate and proposed rate for most land uses. The amounts shown in Table 9 for each land use have been updated to reflect the most recent ITE daily trip rates from the 10th edition of the Trip Generation Manual. Santa Clara Santa Clara approved a citywide TIF in July 2018, based on a recent nexus study. Previously, Santa Clara collected a TIF only in the area north of the Caltrain tracks and only on certain uses. The City now charges a TIF throughout the City on all land uses. As seen in Table 9, Santa Clara’s TIF rates are the lowest in this survey. San Jose San Jose has four different transportation impact fees that apply in specific areas of the city, but does not have a citywide TIF. The four areas defined for the four fees do not overlap, so no proposed project ever pays more than one TIF, and projects that do not fall into any of the four areas would not pay any TIF. San Jose has the highest impact fees of all the cities included in this survey. North San Jose Area The North San Jose TIF rates were established by the travel demand forecasting model used to project future traffic volumes in the area, not by standard ITE rates, and therefore account for internalization of trips within the area and much higher transit use and bicycle use than the ITE rates assume. North San Jose TIF rates are specified for the following five land uses: single-family residential, multi-family residential, industrial, hotel, and large-scale commercial, which is defined as regional-serving destination retail. Retail uses that are under 100,000 s.f. are exempt from the TIF. The industrial rate is typically applied to office use development in the area. For uses that do not fall into one of these categories, a rate of $15,410 per PM peak-hour trip is used. This per trip fee is higher than the proposed citywide Palo Alto TIF per trip fee. However, in recent years, the City of San Jose has offered to significantly reduce these impact fees in order to stimulate more development in the area. Evergreen – East Hills Area This traffic impact fee is charged to all new development within the boundaries of the Evergreen-East Hills Development Policy area. Just two fee amounts are specified: the residential fee is $15,148 per unit and the commercial/office fee is $13.17 per square foot. This residential fee is higher than the proposed fee in Palo Alto, but the commercial/office fee is lower than Palo Alto’s proposed retail fee. U.S. 101/Oakland/Mabury TIF The U.S. 101/Oakland/Mabury TIF was established to partially fund the improvement of the U.S. 101/Oakland Road interchange and the construction of a new U.S. 101 interchange at Mabury Road. The TIF is charged to all new development in the vicinity of the existing U.S.101/Oakland Road interchange and the planned U.S. 101/Mabury interchange where the project-specific traffic analysis indicates that the development will generate net new vehicle trips on those interchanges. The current trip fee per PM peak-hour trip is $35,767. This is the highest fee shown in Table 9. Interstate 280/Winchester Boulevard TIF The Interstate 280 (I-280)/Winchester Boulevard TIF is charged to all new development within the boundaries of the I-280/Winchester Transportation Development Policy area, that is projected to generate vehicle trips utilizing the planned improvement. The planned improvement is the design and construction of a new northbound off-ramp from I-280 to Winchester Boulevard. The TIF will provide partial funding for this project, and was established in 2016. The fee is $25,641 per PM peak-hour trip projected to use the planned improvement. This TIF is also higher than the proposed Palo Alto fee. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 31 Fremont Fremont is included in the survey because it is on the other side of the Dumbarton Bridge and is thus the closest city in Alameda County to Palo Alto. Unlike other cities in this survey, it specifies its rates for residential uses in terms of the number of bedrooms in each dwelling unit. For studios and 1- bedroom units, the TIF is $2,164; for units with 2 or 3 bedrooms, the TIF is $2,417; and for units with 4 or more bedrooms, the TIF is $3,680. San Francisco San Francisco replaced its previous citywide Transit Impact Development Fee with a citywide Transportation Sustainability Fee (TSF) in 2015. The current fee is $8.13 per s.f. for residential projects with 21-99 units and $9.18 per s.f. for residential projects over 99 units. San Francisco is the only city in this survey that uses square footage as the basis of its residential rates, rather than dwelling units or vehicle trips. For non-residential projects, the fee is $18.94 per s.f. for projects under 99,999 s.f. and $19.99 per s.f. for projects over 99,999 s.f. Residential projects that are less than 20 units and non- residential projects with less than 800 s.f. are exempt from the fee. The non-residential rates are higher than Palo Alto’s proposed citywide TIF. San Francisco also has seven development impact fees that apply only in specific neighborhoods that include funding for transportation purposes. For example, a Community Infrastructure Impact Fee in the Market-Octavia Area includes funding for pedestrian and streetscape improvements, bicycle facilities, and transit, as well as funding for non-transportation purposes. The impact fees that apply to these seven specific districts or neighborhoods are based on adopted area plans. Some area fees are further subdivided into tiers or apply only if a project exceeds a specified Floor Area Ratio (FAR). Because of the complexity of the TSF and the area plan fees, San Francisco’s TIF rates are not included on Table 9. The nexus study that underlies the citywide Transportation Sustainability Fee addressed the relationship between the TSF and the area plan transportation fees. The area plan transportation fees were developed to address local impacts from new development, while the TSF is designed to fund projects and programs that address citywide impacts. The nexus study notes: “Regardless of the separation or overlap between area plan fees and the TSF, the TSF should be adopted at a level such that the combined area plan and TSF amounts are less than the maximum justified TSF amounts…This approach would ensure that new development is not overpaying for transportation impacts.” The TSF nexus study identified the maximum justified transportation fee for various transportation purposes and presented the amounts of the area plan fees and the TSF to ensure that the combined rates would not exceed the maximum justified amount. The maximum justified rate is $30.93 per s.f. for residential projects, $87.42 per s.f. for non-residential projects (except production, distribution, and repair uses), and $26.07 per s.f. for production, distribution, and repair uses. Summary Most other cities in this survey have an impact fee for retail uses that is much less than the proposed rate in Palo Alto before TDM reductions are accounted for. Cities generally charge a lower rate on retail uses in order to encourage more neighborhood-serving retail development. Some cities charge only about 50% of the rate based on ITE trip generation rates. Some cities exempt retail projects that are less than 50,000 square feet. Mountain View’s new citywide TIF sets the same rate for retail uses as for office and R& D uses. If Palo Alto does not reduce the TIF it imposes on retail projects or exempt smaller retail projects, its rate for retail uses would be far higher than other nearby cities. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 32 When rates for multi-family housing are considered, only the rates in Los Gatos and the North San Jose area are higher than the proposed Palo Alto rate before TDM reductions are accounted for. After accounting for TDM reductions, the proposed Palo Alto rate would be in the same approximate range as several other cities in the survey. There is a very wide range of TIF rates for office uses. Four cities in the survey have higher rates for office developments than the proposed Palo Alto rate even before TDM reductions are accounted for: Los Altos, the North Bayshore area of Mountain View, Cupertino, and the Evergreen-East Hills area of San Jose. After accounting for a 30% TDM reduction (for example), the resulting Palo Alto office rate would be the equivalent of $6,348 per KSF, which is greater than nine of the office rates included in the survey. Given that Palo Alto currently also charges area-specific fees in three defined areas of the city, the total TIF amount for parcels located in one or more of those areas is currently even higher than what is shown in Table 9 and much higher than most other cities. This is especially true in the Stanford Research Park/El Camino Real area, with a TIF of $12.85 per square foot. By eventually eliminating the three area-specific TIFs and transitioning to a single citywide TIF, the administrative process would be simplified in Palo Alto and the total TIF burden would be higher than what is charged in many other nearby cities but the differential would not be as great as it would be if the proposed new citywide rate were adopted and the area-specific TIFs were retained. Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 33 6. Conclusions This nexus study reviews the City of Palo Alto’s existing transportation impact fees and makes recommendations regarding the impact fee program in the future. Findings have been made in accordance with the requirements of the Mitigation Fee Act (AB 1600). Existing Transportation Impact Fees The City of Palo Alto currently has four transportation-related impact fees, of which three are applied in specific areas of the city and one is applied citywide. These four impact fees, the year when each was first adopted, and key findings about each area are as follows:  San Antonio / West Bayshore Area Traffic Impact Fee, 1986: This area has been redeveloped since the EIR and nexus study were prepared in 1986.  Stanford Research Park / El Camino Real CS Zone Transportation Impact Fee, 1989: Of the four intersection improvement projects listed in the municipal code for this area, two are complete and the City has recently signed an agreement with the Santa Clara County Department of Roads and Airports to make improvements to the other two.  Charleston – Arastradero Corridor Pedestrian and Bicyclist Safety Impact Fee, 2005: The corridor project is not yet complete. The City plans to continue to use these impact fee funds towards completion of the Charleston-Arastradero Corridor Plan, as provided for in the original nexus study.  Citywide Transportation Impact Fee, 2007: The City has used funds from the citywide TIF to fund bicycle and pedestrian improvements and an upgraded traffic signal system. Projected Future Growth and Resulting Impacts The Council Reduced Preferred Scenario of the Palo Alto Comprehensive Plan Update includes 9,444 new residents and 7,321 new jobs. Using the same forecasting model that was used for other planning scenarios, it is estimated that there will be 3,229 additional PM peak-hour motor vehicle trips generated by the Council Reduced Preferred Scenario. The Comprehensive Plan Update requires all new development projects to develop TDM plans to reduce the number of PM peak-hour vehicle trips by a specified amount, depending on the location of the project. In other words, the City is requiring an upfront investment in ongoing trip reductions by new development through the implementation of robust TDM plans. The range of required reductions is from 20% to 45%. Based on the amount of growth projected for each area and the TDM trip reduction target for that area, there would be an estimated reduction of 1,044 PM peak-hour trips, assuming all Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 34 projects meet their TDM targets. Thus, it is estimated that 2,185 new PM peak-hour trips would be generated by the future growth defined by the Council Reduced Preferred Scenario, which is 4.4% of the total estimated citywide PM peak-hour trips in the year 2030. The Council Reduced Preferred Scenario would generate fewer PM peak-hour trips than the original Preferred Scenario, but it would still result in transportation impacts because it would still generate additional traffic as a result of additional housing units and non-residential square footage. In order to ensure that there is a reasonable relationship between the impacts caused by the additional development and the amount of the impact fee imposed on that new development, the calculation of the impact fee is based on new development’s fair share of the costs of the proposed improvements. New development would generate 4.4% of the PM peak-hour trips in 2030, so 4.4% is the fair share of transportation improvement costs that new development should fund through the citywide TIF. The purpose of the improvements to be funded by the TIF is to mitigate or offset these projected impacts to the extent feasible. Improvements to Mitigate Impacts Hexagon recommends transitioning to a single citywide Transportation Impact Fee (TIF) rather than the current structure of three fees that apply in specific areas and one citywide fee. However, we recommend retention of the Charleston-Arastradero Corridor fee until that bicycle and pedestrian safety project has been completed. The City’s Comprehensive Plan Update Final Environmental Impact Report is the basis for the nexus between the projected future development in the City and the proposed citywide TIF. The proposed citywide TIF expenditure plan is rooted in the City’s policies of encouraging alternative mode use, discouraging single-occupant vehicle trips, improving traffic flow without major capacity enhancements, and encouraging motorists to use arterials rather than local residential streets. The total estimated cost of the improvements to be funded partially with the citywide TIF is $935,100,000. For projects for which an annual expenditure amount has been provided, the total cost assumes 12 years (2019 – 2030) of that annual amount. The City’s estimated share of these total costs is $391,600,000. Based on the fact that 4.4% of the total PM peak-hour motor vehicle trips generated in the year 2030 would be generated by new development, 4.4% of the City’s share of improvement costs, $17,230,400, is attributed to new development and should be funded by the citywide TIF. New development will also be responsible for a significant upfront and ongoing investment in trip reductions, through implementation of required TDM plans. Proposed Citywide Transportation Impact Fee The proposed amount of the citywide Transportation Impact Fee has been calculated by dividing the cost of the improvements to be funded by the TIF by the number of additional PM peak-hour motor vehicle trips. The resulting impact fee is $7,886 per PM peak-hour trip ($17,230,400 / 2,185 = $7,885.77). Additional recommendations include:  The City should continue to charge the TIF on a “per PM peak-hour trip” basis and use the trip rates included in the most recent edition of the ITE Trip Generation Manual. Trip reductions due to implementation of TDM Plans should be applied in accordance with the policies of the Comprehensive Plan Update.  It is recommended that the existing exemptions from the citywide TIF be retained, for consistency with Palo Alto’s community facilities impact fees and to continue to encourage development of those land uses. The City may wish to consider a lower per PM peak-hour trip Transportation Impact Fee Nexus Study April 9, 2019 P a g e | 35 fee for retail uses or increasing the size of retail uses that would be exempt from the TIF. The rationale for such a change is that many retail projects serve to reduce vehicle miles travelled (VMT) and result in lower traffic impacts than their high trip generation suggests, due to short trip lengths, pass-by trips, and diverted linked trips.  Consider exempting all accessory dwelling units (ADUs) from the citywide TIF in order to encourage their development. The City currently exempts junior accessory dwelling units (JDUs) and certain ADUs that were established by garage/carport conversions.  It is recommended that development projects on parcels where the existing structures have been vacant for two or more years do not receive credit for the existing uses on the parcel, when calculating the TIF.  Continue to adjust fee levels annually, in line with the Construction Cost Index. Impact Fees in Other Cities The Transportation Impact Fees of numerous nearby cities were tabulated in order to provide context for considering Palo Alto’s existing citywide TIF of $3,700 and proposed TIF of $7,886 per net new PM peak-hour vehicle trip. To facilitate comparison with other cities’ rates, Palo Alto’s “per PM peak-hour vehicle trip” rates were converted to rates per dwelling unit, per thousand square feet, and per hotel room. In general, Palo Alto’s proposed citywide TIF rate before TDM reductions are accounted for would be among the highest rates of the cities surveyed. It is difficult to generalize about how the proposed rates after TDM reductions compare to other cities’ rates, because there is such a range of required TDM reductions (from 20% to 45%) and wide variation among the rates charged for different land uses by different municipalities. The land use for which a broad generalization can be made is that Palo Alto’s proposed rate for retail uses would be higher than other cities’ rates for retail even after TDM reductions are taken into account. This disparity suggests that Hexagon’s recommended reduction in the TIF rate imposed on new retail developments would be warranted if Palo Alto wishes to encourage more neighborhood-serving retail projects. Transportation Impact Fee Nexus Study Technical Appendices Appendix A Project Descriptions for Proposed TIF Improvements Appendix A: Project Description for Proposed TIF Improvements Total Project City's Share Citywide Transportation Impact Fee Projects Project Description Cost a of Cost Alma Street Complete Streets and Transit Connection Homer to Lytton: Pathway on west side of Alma connecting Homer Tunnel to Caltrain Station, pedestrian crossing improvements at Forest and at University, signal upgrade at Hamilton Ave with Caltrain driveway improvements. Study roadway reconfiguration for Complete Streets north of Embarcadero to El Camino Real. 4,000,000$ 4,000,000$ Bicycle and Ped Transportation and Other Plan Implementation: $4 M/year Construct bicycle boulevards, enhanced bikeways, shared-use paths, bicycle parking and a citywide bicycle sharing system in accordance with the Palo Alto Bicycle and Pedestrian Transportation Plan, which was adopted by City Council in 2012. Plan update anticipated in 2021. Includes funding for other transportation improvements if funding is reallocated, such as for Coordinated Area Plans and corridor plans. 48,000,000$ 48,000,000$ Bol Park Path Reconstruction Improve the existing Bol Park Path and implement context sensitive solutions such as widening the path, creating a separate pedestrian walkway, and assessing all access points, signage, and street crossings. Evaluate lighting options.2,500,000$ 1,250,000$ California Ave Caltrain Undercrossing ADA Retrofit/ReconstructionReplace California Avenue bicycle/pedestrian undercrossing of Caltrain tracks with new ADA-compliant structure and connections to tunnel.20,000,000$ 10,000,000$ Citywide Traffic Improvements (signage, striping): $500K/year Install miscellaneous traffic improvements including signage and striping modifications.6,000,000$ 6,000,000$ Citywide/Neighborhood Traffic Safety Program: $500K/year Construct specific improvements that can be used to discourage non- local drivers from using local, neighborhood streets to bypass traffic congestion on arterials.6,000,000$ 6,000,000$ El Camino Real Pedestrian Safety and Streetscape Project Install complete streets improvements focused on pedestrian safety at controlled and uncontrolled crosswalks, enhanced bus operations at two existing major transit stops, and new urban design amenities between Stanford Avenue and Sheridan Avenue. The project includes: curb extensions; median refuges; two pedestrian hybrid beacons at a new and existing uncontrolled crosswalks; median shade trees; pedestrian scale lighting.5,300,000$ 600,000$ Embarcadero Rd at El Camino Real Improvements Construct bicycle, pedestrian and traffic circulation improvements along Embarcadero Road between Bryant Street and El Camino Real. Improvements include better bicycle and pedestrian connection to the Bryant Street Bicycle Boulevard, safety improvements at High Street, dedicated bikeways between the Caltrain Path and the Stanford Perimeter Trail, a protected intersection for bicyclists at El Camino Real, and pedestrian safety enhancements.6,000,000$ 6,000,000$ Embarcadero Road at East Bayshore Road Traffic Signal Install new full traffic signal at at Embarcadero Road and East Bayshore and restripe intersection to permit eight-phase signal operation. 900,000$ 700,000$ Fabian Way Complete Street Restripe Fabian Way with two-travel lanes, two bicycle lanes, and one two-way left-turn lane. Add pedestrian refuge islands.1,200,000$ 1,200,000$ Foothill Expwy and Arastradero Rd and Miranda Ave Improvements Reconstruct entire intersection as defined by Expressway Plan 2040 study concept. Provide grade separation at Foothill and Arastradero, a roundabout at Miranda and Arastradero, and a signalized intersection at the SB Foothill off-ramp and Arastradero. Provide connections for bikes and pedestrians.60,000,000$ 6,000,000$ Hansen Way Connector Path Class I shared-use path between Bol Park Path and El Camino Real with signalized crossing of El Camino Real and connection to the Park Boulevard bicycle bouelvard. Alignment to be determined.2,000,000$ 1,000,000$ Middlefield Rd Enhanced Bikeway Evaluate and install Class II or better bicycle facility on Middlefield Road between East Charleston Road and Mountain View city limits. 2,000,000$ 2,000,000$ Middlefield Rd Midtown Corridor Improvements Project includes sidewalk enhancements, transit stop improvements, lighting improvements, and traffic signal improvements.2,100,000$ 2,100,000$ Page Mill Rd at Porter Drive Intersection Improvements Add an eastbound u-turn only movement.500,000$ 50,000$ Page Mill Road Expresssway Corridor Improvements Widen Page Mill Road to six lanes with two HOV/HOT lanes and provide a continuous trail from I-280 to Foothill Expressway; improve intersections between Foothill Expressway and El Camino Real, and construct grade separation at the Page Mill Rd and Foothill Expressway/Junipero Serra Boulevard intersection.97,000,000$ 9,700,000$ Palo Alto Intermodal Transit Center Construct an intermodal facility for trains, buses, bicycles, autos and pedestrians, and act as a gateway to both Downtown Palo Alto and Stanford University.50,000,000$ 20,000,000$ Railroad Grade Separationsb Construct railroad grade separations at Palo Alto Avenue, Churchill Avenue, West Meadow Drove and West Charleston Road 600,000,000$ 250,000,000$ San Antonio Rd/Ave Enhanced Bikeway Construct Class I shared-use path with improved intersection treatments and wayfinding on San Antonio Road between East Charleston Road and Alma Street. Class III bicycle boulevard with traffic calming and new bike/ped-oriented roundabout on San Antonio Avenue between Byron Street and Alma Street 2,000,000$ 1,000,000$ South Palo Alto Caltrain Pedestrian/Bicycle Grade Separation Evaluate and construct grade separated bicycle/pedestrian crossing between Caltrain California Avenue Station and West Meadow Drive. 10,000,000$ 10,000,000$ Traffic Signal and Intelligent Transportation Systems: $700K/year Construct traffic signals, traffic signal communications networks, video surveillance projects for transportation use, and maintenance of the City’s traffic signal central system. The project includes the replacement of traffic signal controllers/cabinets, video detection systems, and other field equipment.8,400,000$ 4,800,000$ Transit Priority/Traffic Signal Improvements Install traffic signal transit preemption and priority equipment and construct transit queue-jump lanes where feasible, or signal equipment upgrades.1,200,000$ 1,200,000$ Total 935,100,000$ 391,600,000$ Percentage to be Funded by Citywide TIF (4.4%)17,230,400$ Notes: (a) For projects with an annual capital or operating cost, the total cost is based on 12 years (2019-2030). (b) This is a placeholder estimate. The actual cost of the project will be updated pending the City Council decision on a Preferred Alternative. Current project alternative costs range from $200,000,000 to $3,800,000,000. Attachment C Palo Alto Municipal Code TDM Regulations (Adopted in 2017) 18.52.030 Basic Parking Regulations (i) Transportation Demand Management Plan (1) Requirement for TDM Plan: A Transportation Demand Management (TDM) Plan to reduce and manage the number of single-occupant motor vehicle trips generated by the project shall be prepared and submitted by the applicant in the following circumstances: A. For all projects that generate 50 or more net new weekday (AM or PM peak hour) or weekend peak hour trips; B. For all projects claiming a reduction in net new trips due to proximity to public transit or the implementation of a TDM plan; and C. For all projects requesting a parking reduction. (2) The Director shall have the authority to adopt guidelines for preparing TDM plans and when applicable shall coordinate such guidelines with the Transportation Management Association. 18.52.050 Adjustments by the Director (d) Transportation Demand Management (TDM) (1) A Transportation Demand Management (TDM) program may be (a) proposed by an applicant, or may be (b) required by the director for any project requesting a reduction in parking or generating 50 or more net new weekday (AM or PM peak hour) or weekend peak hour trips, or (c) may be required as CEQA mitigation for identified potential significant parking impacts. (2) Where a Transportation Demand Management (TDM) program is proposed or required, the TDM program shall outline parking and/or traffic demand measures to be implemented to reduce parking need and trip generation. The Director shall have the authority to adopt guidelines for preparing TDM plans. Required measures may include, but are not limited to: participation in the Transportation Management Association or similar organization, limiting “assigned” parking to one space per residential unit, providing for transit passes, parking cash-out, enhanced shuttle service (or contributions to extend or enhance existing shuttle service or to create new shared or public shuttle service), car- sharing, traffic-reducing housing, providing priority parking spaces for carpools/vanpools or “green” vehicles (zero emission vehicles, inherently low emission vehicles, or plug-in hybrids, etc.), vehicle charging stations, additional bicycle parking facilities, or other measures to encourage transit use or to reduce parking needs. The program shall be proposed to the satisfaction of the director, shall include proposed performance targets for parking and/or trip reduction and indicate the basis for such estimates, and shall designate a single entity (property owner, homeowners association, etc.) to implement the proposed measures. (3) Monitoring reports shall be submitted to the director two years after building occupancy and again every year thereafter, noting the effectiveness of the proposed measures as compared to the initial performance targets, and implementing modifications if necessary to enhance parking and/or trip reductions. (4) Where the monitoring reports indicate that performance measures are not met, the director may require program modifications and may impose administrative penalties if identified deficiencies are not addressed within six months. City of Palo Alto (ID # 10261) City Council Staff Report Report Type: Action Items Meeting Date: 4/22/2019 City of Palo Alto Page 1 Council Priority: Fiscal Sustainability Summary Title: Approve Workplan for a Potential Revenue Generated Ballot Measure Title: Approval of a Workplan for Potential Revenue Generating Proposals, Including Consideration of a Ballot Measure, in Support of the 2019 Fiscal Sustainability Council Priority From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the City Council review, provide feedback, and approve the draft workplan for addressing elements M and N of the 2019 Fiscal Sustainability workplan: Element M) Analysis of revenue generating options, and Element N) Develop a plan for a business tax proposal, including reform of the business registry through implementation of a business license program. Background On February 2, 2019, the City Council met for their annual retreat and adopted four (4) priorities for calendar year 2019 including “Fiscal Sustainability.” On March 19, 2019, staff brought to the Finance Committee a draft workplan for 2019 to address this priority for review, feedback, discussion, and ultimately a recommendation to the City Council. In this workplan, staff attempted to encapsulate what the term “fiscal sustainability” means and articulate the overarching goal of the workplan - to continue to make proactive progress towards fiscal sustainability for the City of Palo Alto in order to maintain the quality of life that the City of Palo Alto supports through its services. The workplan was unanimously approved by the Finance Committee and recommended for City Council approval as part of the Consent Calendar on the April 22, 2019 agenda. The Finance Committee materials reviewed on March 19, 2019 can be found in the links below: City Manager Report #10179: http://cityofpaloalto.org/civicax/filebank/documents/69883 Action Minutes: City of Palo Alto Page 2 https://cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=69909.34&BlobID=70164 Minutes: https://cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=69909.36&BlobID=70165 Presentation (beginning on PDF page 58): https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=45540.74&BlobID=70019 Discussion As part of the approval of the 2019 Fiscal Sustainability workplan, staff articulated that it planned to follow-up on individual elements of the plan for review and approval with more robust project scoping for those specific elements. As a follow-up to that discussion, staff prepared a workplan for a potential Revenue Ballot Measure as outlined below. In the context of evaluating funding sources to address the need for railroad grade separations throughout the city, there has been significant community interest in some form of tax on business activities within Palo Alto. Such a tax could take a variety of forms, such as a tax on a per-employee, square footage, or revenue basis. Recognizing the Council’s interest in understanding the magnitude of revenue that could be generated by such a tax, the workplan that follows is designed to evaluate such a tax within a timeframe that would support the ongoing evaluation and narrowing of grade separation alternatives. At the same time, understanding that such a tax could be either a general tax or dedicated to specific purposes, the recommended workplan is coordinated but independent of the grade separation planning effort. DRAFT WORKPLAN FOR A POTENTIAL REVENUE BALLOT MEASURE: 2019 Fiscal Sustainability Workplan Elements: M) Analysis of revenue generating options AND N) Develop a plan for a business tax proposal, including reform of the business registry through implementation of a business license program. Staff recommends that the Finance Committee serve as the working body to assist in the review of revenue generating options including a potential revenue ballot measure for the November 2020 election; review staff and consultant work, and stakeholder feedback. The Finance Committee will make its recommendations for consideration and action by the full seven- member City Council. Finance Committee: would serve as the public body to review periodic progress reports, allow for structured public discussion, and provide feedback and recommendations on the review and development of a potential ballot measure or other revenue generating strategy. Staff will manage and synthesize work done in-house and by consultants, as well as stakeholder feedback, in progress reports to the committee. Ultimately, the Finance Committee would recommend a preferred revenue generating proposal(s) for City Council action. City Council: would serve as the governing body for policy direction at key decision points. This includes, for example, direction to conduct polling, approval of alternatives to be evaluated, City of Palo Alto Page 3 and decisions on specifically what and when to place a ballot measure on an upcoming election. Timeline The chart below includes a detailed timeline of the proposed revenue generating analysis and potential Revenue Ballot Measure workplan. It overlays, for ease of reference, a draft of the Rail Grade Separation Workplan staff is seeking City Council review and approval for in a separate Council agenda item. The timeline is intended to allow appropriate time to make policy decisions for a potential November 2020 ballot measure and supports other major initiatives underway such as the Cubberley Master Planning process and the Council goal to decide on a preferred solution for grade separation in October 2019. Staff recommends that the Finance Committee and City Council discuss revenue generating activities on a parallel track separate from these major initiatives. This will allow the City Council to focus on generating revenues in a comprehensive way that factors in all City needs which go beyond a single investment or project need. More details about the timeline are included below the chart. Figure 1: Combined Timelines Proposed Timeline Details: This table outlines the key decision points for City Council and Finance Committee and notes anticipated staff work to be completed for context. Schedule Task April Agreement on iterative approach to the development of revenue estimates and options, workplan, and roles. May Development and execution of RFP for consultant services - Included in this scope staff will seek expertise in revenue generating ballot measures including financial analysis. June Finance Committee: accept initial analysis of revenue generating proposal City of Palo Alto Page 4 estimates – with estimates to be completed internally by staff and intended to assist in informing various working groups in project financial planning and focus further refined analysis. City Council award of consultant contract(s) – as necessary to complete this workplan. August Finance Committee: accepts refined analysis of revenue generating proposals estimates; discuss and provide guidance on initial polling – With the assistance of consultant expertise, a more in-depth review of revenue generating proposals will be presented to the Finance Committee providing more accurate financial estimates to assist in financial planning. September City Council: confirmation on potential revenue generating proposals including revised revenue estimates – Work completed with the Finance Committee to be reviewed by the full Council in order to receive input and direction on more refined steps. October City Council decides on revenue generating proposal(s) to pursue - informed by the Finance Committee, financial analysis, polling, and a more refined understand of potential projects and associated costs. November 2019-April 2020 Staff work - Continue stakeholder outreach, draft required legal documents, complete polling as appropriate. City Council and Finance Committee will be provided updates as necessary for status check-ins, feedback, and policy decisions. June 2020 City Council approves November 2020 ballot measure and specific measure language - Should the City Council choose to pursue a ballot measure(s), final approval including the ballot measure language will need to be submitted to the Santa Clara County Registrar of Voters in early August 2020. The workplan anticipates an iterative approach for the Finance Committee and City Council providing information at a steady pace and allows for continued review and refining of proposals. As such, both polling and stakeholder outreach are not outlined in the monthly timeline above. Staff recognizes the need for both polling and stakeholder outreach throughout the process. The frequency and appropriate stakeholders are highly dependent on the types of proposals pursued. Should the City pursue a Business Tax measure, outreach and polling would most likely occur during the following periods: - July and August of 2019 initial stakeholder outreach seeking initial feedback on a potential business tax measure, - September of 2019 initial polling would be conducted on proposed revenue generating measures. Poll questions would be drafted by a consultant and staff with input from the Finance Committee and/or Council before it was executed. (Ideally this timing would be coordinated with other polling activities in the City for scalability and to ensure survey fatigue is managed.) - November 2019 to April 2020 further consultation regarding the design and structure of a specific tax measure once a determination on revenue generating proposal(s) to pursue is made. This multi stepped and informal stakeholder engagement process for a business tax measure would be recommended as both outreach about instituting a business tax would be necessary for education and awareness but also for consultation regarding the design and structure. Candid direct feedback through an iterative process will assist in the development of a viable City of Palo Alto Page 5 measure that is administratively feasible. It should be noted that this workplan has thus far been developed in concept and if the City Council approves, will require a detailed review and refinement by the City Attorney’s Office to ensure all legal requirements associated with a ballot measure and taxing requirements are addressed and met. Resource Impact Staff recommends that both a significant focus of existing staff time be dedicated to this initiative along with consultant assistance for the analysis, outreach, and polling of these efforts. No funding for consultant assistance is currently budgeted, therefore, it is anticipated that as contracts are necessary, staff will bring forward both funding requests and the contracts for approval. Given the tight timeline of this workplan, exemptions to solicitation processes may be sought as part of those contract awards. The City has most recently completed work associated with revenue ballot measures in 2018 for Measure E (increase in Transient Occupancy Tax rate) as well as 2016 for a potential business tax measure. Staff will work to leverage this prior work to the extent possible including consultant knowhow to ease the onboard and accomplish the proposed timing. Policy Implications This recommendation aligns with existing City policy and City Council direction as part of the 2019 Fiscal Sustainability Workplan. Environmental Review This report is not a project for the purposes of the California Environmental Quality Act (CEQA). Environmental review is not required. City of Palo Alto (ID # 10268) City Council Staff Report Report Type: Action Items Meeting Date: 4/22/2019 City of Palo Alto Page 1 Summary Title: Connecting Palo Alto Grade Separation Project Follow Up: Timeline, Working Group, and Criteria Title: Connecting Palo Alto Work Plan for Selection of Preferred Solutions to Rail Grade Separation Needs: Approval of Structure and Membership of Expanded Community Working Group, Work Plan, and Revisions to Alternatives for Further Study; and Direction to Staff to Return to Council with Associated AECOM Contract Amendment From: City Manager Lead Department: City Manager Recommendation Staff recommends that the City Council: A. Approve the structure and membership of an expanded Community Working Group; B. Approve the Rail Grade Separation Work Plan as a follow up to the Marth 18th Committee of the Whole recommendation including a timeline and process by which the City Council would select a preferred solution to begin environmental review; C. Approve Alternatives to be studied by the Community Working Group; D. Direct Staff to return to Council with an amendment to contract C18171057 with AECOM to reflect scope changes and extension to October 2019 for Council selection of a preferred solution. Background At the March 18, 2019 Committee of the Whole (COTW) meeting, the COTW recommended a set of actions relating to rail grade separation including direction to staff to prepare a detailed timeline (including community engagement) with a preferred solution being considered in October 2019; a plan for a community working group that would focus on recommending consensus-based project alternatives; and a contract amendment with AECOM to reflect scope changes. The final recommendation from the COTW meeting included the following: City of Palo Alto Page 2 A. Direct Staff to propose a detailed timeline for the Connecting Palo Alto Rail Grade Separation planning effort, with the timeline being extended to October 2019, and which includes community engagement; B. Direct Staff to create a dynamic model that orders the alternatives based on the criteria; C. Direct Staff to return to Council with a plan for a community working group which reports to Council and would focus on recommending consensus-based project alternatives based on funding and technical issues, and ideas for communication; D. Direct Staff to develop a list of ongoing questions and answers from the Rail Committee of the Whole; and E. Recommend the City Council approve the parameters for an upcoming contract amendment to contract C18171057 with AECOM funded in the Grade Separation capital project (PL-17001) to continue work to assist the City with the selection of a preferred solution for environmental review. As a follow up to that recommendation, staff has prepared a recommended Rail Workplan as follows. Discussion To provide additional information regarding the staff recommendation, this report is separated into four sections: Structure of an expanded Community Working Group; timeline and Rail Workplan; alternatives to study; and AECOM contract amendment. Structure and Membership of an expanded Community Working Group: The COTW directed staff to return to Council with a plan for a community working group which reports to Council and would focus on recommending consensus-based project alternatives based on funding and technical issues, and ideas for communication. Staff followed the recommendation and scoped out a Working Group for rail that will maximize the input sought by Council as well as keeping with the timeframe of October for a preferred solution. In developing the recommendations that follow, staff has developed an approach that balances several goals:  Continue progress toward decisions on a preferred solution while community engagement is high, and minimizing concern from residents potentially affected by specific alternatives;  Engage the business community on potential revenue strategies in a constructive and inclusive manner; and,  Proceed in a timeframe that supports decision-making related to both rail grade separations and prospective ballot measures. The recommended approach reflects a separation between the rail grade separation work and development of any prospective business tax concepts, with the latter being City of Palo Alto Page 3 led by the Finance Committee and City Council. A separate report on the latter topic has been prepared for consideration by the Council on April 22. Essentially, the workplan reflects an “iterative” approach. An initial revenue measure estimate will be transmitted from the Finance Committee to the Rail Community Working Group, so that the Community Working Group can evaluate grade separation alternatives with this in mind. As refined revenue estimates become available, these will be transmitted to the Community Working Group to factor into any change in conclusions. The recommendations that follow have implications under State conflict of interest rules. Under State law, a purely advisory body may include residents and businesses with real property interests near the crossings, and other financial interests implicated by the grade crossing decisions. To qualify as purely advisory, the body cannot (i) “make a final governmental decision”, (ii) “compel or prevent a governmental decision”, or (iii) make “substantive recommendations” that are “regularly approved without significant amendment or modification” by a City public official or City Council “over an extended period of time.” (FPPC Regulations 18700(c)(2)(A)). The work of the current community advisory panel has been consistent with this definition, and therefore its members were not subject to vetting for disqualifying real property or financial interests. It appears that the revised Community Working Group may have an expanded and more formal decision making role: to recommend grade separation projects that will be reviewed by Council and approved without significant amendment. This type of advisory body will be subject to State conflict of interest rules, which will prevent nearby property owners from serving and may result in some current members being unable to continue on the new Working Group. Proposed Format and Scope of an expanded Community Working Group: The Community Working Group would recommend to the City Council a preferred grade separation alternative for the southern segment (Charleston and Meadow) and the middle segment (Churchill) based on existing alternatives already approved by the City Council, available technical information, and the optional funding plans provided by the City. As with the existing Community Advisory Panel, the expanded Community Working Group will also be responsible for helping spread the word about grade separation activities to the broader community. As proposed, the Community Working Group will not consider polling nor the development of any specific local tax measures. The consideration of any revenue generating activities will be considered on a parallel track outside of the rail grade separation discussions. The rail workplan presumes that the Finance Committee and City Council will discuss such revenues in a timeframe consistent with this workplan. Proposed Membership of the Community Working Group: Staff proposes a working group with a membership of 15-18 members. A group any larger is less manageable to keep productive during meetings. Based on Council discussion of the intent of the working group, staff proposes the following membership composition for the Working City of Palo Alto Page 4 Group: - Current 12 Community Advisory Panel (CAP) Members - 1 Representative from Stanford University - 1 Representative from Stanford Research Park - 1 Representative either from Stanford Health or the Stanford Shopping Center - 1 Representative from the Palo Alto Chamber of Commerce - 1 Representative from the Palo Alto Unified School District - 1 Representative from the Friends of Caltrain Board It should be noted that staff has received some concerns regarding the composition recommended by the COTW. Informal feedback from some CAP members has reflected concern with the formality required by council-appointment, including Brown Act requirements. It has also been noted that most business participants will not reflect perspectives beyond their own organization, and will not be representative of multi- tenant properties. Staff will continue to meet with Caltrain, Santa Clara Valley Transportation Authority, and the Santa Clara Valley Water District to discuss issues relevant to each agency. Staff will report back to Council and the Working Group. Proposed Selection of Community Working Group Members: As recommended by the COTW, individual members of the Community Working Group would be selected by the City Council. In order to continue progress made to date, staff recommends that current CAP members have the opportunity to remain on the Working Group, with additional residents added as replacements only. Staff anticipates bringing Community Working Group member name recommendations to the Council in early May. However, completing the conflicts analysis involved with a formal advisory body may cause the timeframe to be extended. Staff Support for the Community Working Group: Meeting management and materials will be provided through the Office of the City Manager and the AECOM consultant team. Proposed Meetings for Working Group: There will be seven (7) meetings scheduled at intervals of approximately two (2) to four (4) weeks apart beginning in late May through October. The dates are shown in the comprehensive timeline in the next section of this report. While the meetings will be open to the public, they will be scheduled in the late afternoon similar to the previous Community Advisory Panel (CAP) meetings. Proposed Operating Procedures (Noticing, etc.) for the Community Working Group: The Community Work Group will be subject to the Brown Act (“the Act”). Meetings will be open to the public and recorded, and serial meetings will be prohibited. Agendas will be posted in advance and available on the website, and the meeting materials will be made City of Palo Alto Page 5 public before, at and after the meetings, in accordance with the Act. Meetings will adhere to the published agenda and will include public comment as required by the Act. Timeline and Rail Workplan: The chart below includes a detailed timeline of the proposed Rail grade separation Workplan. The timeline optimizes the Council goal to get to a preferred solution in October 2019. It also overlays, for ease of reference, a separate draft workplan in relationship to the review of revenue generating proposals including the potential for a business tax ballot measure. Staff is seeking City Council to review and approve the revenue generating proposals workplan separately from the Rail Workplan. This will allow the City Council to focus on generating revenues in a comprehensive way that factors in all City needs which go beyond grade separation. More details about the timeline are included below the chart. Figure 1: Combined Timelines (Also included as Attachment A) The aforementioned timeline includes the following key decision points for the City Council: Key Decision Points to City Council or Finance Committee April Agreement on iterative approach, workplan, and roles; agreement on alternatives for Community Working Group consideration. May Agreement on evaluation weights and matrix as initial assumptions; confirmation on the alternatives for AECOM to evaluate; creation of and appointments to the Working Group June City Council or Finance Committee: approve initial revenue generating proposals estimates. August Community Working Group Check in with City Council; City Council confirmation or revision of the criteria weighting; Council decide on polling questions City of Palo Alto Page 6 Key Decision Points to City Council or Finance Committee September City Council: confirmation on potential revenue generating proposals including revised revenue estimates October City Council selecting a preferred solution and Finance Committee or City Council make a determination on revenue generating proposals to pursue Timeline Details Related to the Community Working Group: Schedule Task Report to Council as follow up from COTW direction Staff follow up with recommendations based on the March 18 COTW recommendation AECOM Contract Amendment Report Staff will work with AECOM on scope and schedule given City Council discussion and decisions. City Council discuss criteria weights City Council reviews staff proposed weighting model WG Meeting #1 Will review Grade Separation Background as well as the evaluation model from Council; would also get a Brown Act orientation WG Meeting #2 Will receive an overview of the alternatives on the table; will also receive an initial financial overview WG Report to Council City Council will receive a Community Working Group status report – Findings to date and questions by the Community Working Group WG Meeting #3 Technical and funding review WG Meeting #4 Technical and funding review WG Meeting #5 Consensus and discussion. Idea is to get the group to agree to land on one alternative per crossing. Polling Polling – the poll will be drafted by a consultant and staff Council will weigh in on it before it goes out. The WG will not edit the questions. WG Meeting #6 Community Working Group will approve their report to City Council Community Meeting Receive feedback on the crossings and proposals Council Preferred Solution Selection City Council to select preferred solution – City Council would review the Community Working Group recommendations; polling; and community meeting response as well as the financial data and make a decision regarding rail/grade separation. Of note, on the parallel track at the same meeting, the City Council would also give staff direction about the revenue generating proposals that they would like financial staff to prepare. The workplan also anticipates an iterative approach for the City Council or COTW to provide an initial weighting scale of the different evaluation criteria, to be used by the Community Working Group. The Community Working Group would use the City Council- provided weighting scale to evaluate the alternatives under consideration. Staff will bring an agenda item in May for the City Council to review a proposed weighting model based on a model created by a current CAP member. City of Palo Alto Page 7 Alternatives to Study: The City Council, as of the January 22 Council Meeting, has six alternatives left for consideration at the three (3) rail crossings at Churchill, Meadow, and Charleston. The Council has narrowed the list of alternatives from the initial list of 34 ideas. The concepts currently under consideration as of January 22 are as follows: - Churchill Ave. | Full or Partial Closure & Add Improvements - Meadow Dr. & Charleston Rd. | Hybrid - Meadow Dr. & Charleston Rd. | Rail Trench - Meadow Dr. & Charleston Rd. | Viaduct - Citywide Tunnel - South Palo Alto Tunnel (direction only to develop scope and budget) The first five (5) alternatives above are included in the current scope of work for the AECOM contract, while the 6th alternative, the South Palo Tunnel (and the variation of it with freight at grade and passenger rail in a tunnel) is currently only authorized for potential addition to the AECOM contract. Based on the status of work completed to date and recent community feedback, staff recommends the Council direct the following refinements to alternatives under study:  Proceed with conceptual evaluation of South Palo Alto Tunnel. While the South Palo Alto tunnel will have many of the same issues identified as the citywide tunnel (cost, creek environmental concerns, and need for property acquisitions), staff recommends proceeding with evaluation of a South Palo Alto tunnel and drop consideration of a variation of freight at street level.  Add consideration of a viaduct at Churchill Avenue. At the March 27 community meeting, several community members suggested that a viaduct at Churchill be considered. In reviewing the initial list of 34 ideas, staff confirmed that a viaduct specifically at Churchill was not explicitly considered, only a citywide viaduct and the Meadow–Charleston viaduct. Given the community interest in seeking an alternative to a closure at Churchill Avenue, staff recommends that study of a viaduct at Churchill Avenue be included in the scope of work ahead. In addition, based on the work to date on the Churchill closure concept, further work will include evaluation of widening the Alma Street bridges at Embarcadero Road to provide four continuous lanes on both Alma Street and Embarcadero Road. AECOM Contract Amendment: Based on the parameters of the previous items, staff will work with AECOM to prepare an amended scope and budget for the AECOM contract and bring that amendment to the City Council for approval in May. The amendment will factor in the scope and budget changes discussed on March 18 as well as the necessary scope and budget changes based on Council direction on the issues described in this report. The City of Palo Alto Page 8 additional tasks to the contract will enable AECOM to work with City staff to complete the work needed on each alternative as well as the work needed to support the expanded Community Working Group. Reference: March 18, 2019 Committee of the Whole Meeting: https://cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=79668.01&BlobID=70361) Attachments:  Attachment A - Zoomed-In Timeline (Apr. 2019-Feb.2020) Attachment A: Zoomed-In Timeline (Apr. 2019 – Feb. 2020) City of Palo Alto (ID # 10069) City Council Staff Report Report Type: Informational Report Meeting Date: 4/22/2019 City of Palo Alto Page 1 Summary Title: Energy Risk Management First and Second Quarters of FY 2019 Title: City of Palo Alto's Energy Risk Management Report for the First Half of Fiscal Year 2019 From: City Manager Lead Department: Administrative Services Recommendation This is an informational report and no City Council action is required. Executive Summary Staff continues to purchase electricity and gas in compliance with the City’s Energy Risk Management Policies, Guidelines, and Procedures. This report is based on market prices and load and supply data as of December 31, 2018, the end of the first half of Fiscal Year (FY) 2019. The projected cost of the City’s fixed-price electricity purchases is $0.09 million lower than the market value of that electricity as of December 31, 2018 for the 12-month period beginning January 1, 2019. In the first half of FY 2019 (July 1, 2018 through December 31, 2018) the City’s credit exposure to fixed price contracts is minimal. The projected Electric Supply Operations Reserve is below the FY 2019 minimum guideline reserve level and the projected gas reserve is also below the FY 2019 guideline reserve level range. There were no exceptions to the Energy Risk Management Policies, Guidelines, or Procedures during the first half of FY 2019. Staff monitored the Energy Risk Management activities for the second quarter of FY 2018 and there was no reportable adverse activity during this period, and no exceptions to report. However, due to staffing constraints the informational report for the second half of FY 2018 was not prepared. All future semi-annual informational reports will be done. Background The purpose of this report is to inform the Council about the status of the City’s energy portfolio and transactions executed with energy suppliers as of the end of the first half of FY 2019. The City’s Energy Risk Management Policy (Section F) requires that staff report on a City of Palo Alto Page 2 quarterly basis but due to lower trading activity levels the Utility Risk Oversight Coordinating Committee (UROCC) has approved providing this report on a semi-annual basis to Council on: 1) the City’s energy portfolio; 2) the City’s credit and market risk profile; 3) portfolio performance; and 4) other key market and risk information. The City’s Energy Risk Management Policy describes the management organization, authority, and processes to monitor, measure, and control market risks. “Market risks” include price and counterparty credit risk. These are risks that the City is exposed to on a regular basis in procuring electric supplies, and to a lesser extent for gas supplies which are purchased at market rates via a monthly index price. The energy risk management section is located in the Treasury Division of the Administrative Services Department. Its role is to monitor and mitigate these risks. This first half of FY 2019 energy risk management report contains information on the following:  Electric Supplies  Hydroelectricity  Fixed-Price Forward Electricity Purchases  Gas Supplies  Credit Risk  Electric Forward Mark-to-Market Values  Electric and Gas Supply Operations Reserves Adequacy  Exceptions to Energy Risk Management Policies, Guidelines, or Procedures Discussion Electric Supplies In order to serve the City’s electric supply demands, the City obtains electricity from: hydroelectric resources (from the federal Western Area Power Administration (“Western”) and Calaveras Hydroelectric Projects); long-term renewable energy contracts (from landfill gas converted to electricity, wind, and solar projects); wholesale purchases which are carried out via fixed-priced forward market purchase contracts; and the electric spot market. Figure 1 below illustrates the projected sources and expected purchases of electricity supplies by month for the 36 months from February 2018 to January 31, 2021, in megawatt-hours (MWh). Sales of surplus energy in the summer months are typical due to the seasonal profile of the City’s generating portfolio as a result of renewable energy power from hydroelectricity, solar, and wind. City of Palo Alto Page 3 -40,000 -20,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 Fe b - 1 8 Ap r - 1 8 Ju n - 1 8 Au g - 1 8 Oc t - 1 8 De c - 1 8 Fe b - 1 9 Ap r - 1 9 Ju n - 1 9 Au g - 1 9 Oc t - 1 9 De c - 1 9 Fe b - 2 0 Ap r - 2 0 Ju n - 2 0 Au g - 2 0 Oc t - 2 0 De c - 2 0 Me g a w a t t H o u r s Figure 1 -Electric Balance Wind Wholesale Western Solar Landfill Calaveras Total Load Hydroelectricity The cost of hydroelectricity received from Western over the 12-month period ending December 31, 2018 is lower than the market value of electricity by $1.0 million. Hydroelectric power from Calaveras was expected to cost $7.1 million (as of December 31, 2018) more than the market value of electricity. Note that Calaveras provides benefits not reflected in the mark-to-market (MTM) calculation, including, for example, ancillary services (e.g., the ability to regulate energy output when the electric grid needs change), and that much of the above-market costs are related to debt service on the cost of constructing the dam. This debt is due to be retired in 2032, and retirement will substantially improve the value of the project relative to the market price of electricity. Fixed-Price Forward Electricity Purchases The City as of December 31, 2018 has purchased and/or sold fixed-priced supplies of electricity totaling 117,550 MWh for delivery in FY 2019 with an average price of $30.83 per MWh. The City contracted for these purchases with three of its approved counterparties: SENA (Shell Energy North America), Exelon, and NextEra Energy Resources. The 12-month MTM value of the City’s forward transactions for wholesale power was $0.09 million at the end of the first half of FY 2019. In other words, the purchase cost (contract price) for these transactions was lower than the market value as of December 31, 2018. The City tracks the MTM value of its forward contracts to measure the value that would be lost due to a counterparty failing to deliver on its contractual commitments, forcing the City to purchase replacement electricity in the market. City of Palo Alto Page 4 The exposure listed above is well within risk management guidelines and presents little risk to the City’s financial outlook. The figures below represent the electric forward volumes (Figure 2) and MTM positions (Figure 3) for each electric supplier by month of delivery for all forward fixed-price electricity contracts over the 12-month period ending December 31, 2019. -20,000 -15,000 -10,000 -5,000 0 5,000 10,000 15,000 20,000 25,000 01 / 0 1 / 1 9 02 / 0 1 / 1 9 03 / 0 1 / 1 9 04 / 0 1 / 1 9 05 / 0 1 / 1 9 06 / 0 1 / 1 9 07 / 0 1 / 1 9 08 / 0 1 / 1 9 09 / 0 1 / 1 9 10 / 0 1 / 1 9 11 / 0 1 / 1 9 12 / 0 1 / 1 9 Me g a w a t t H o u r s Figure 2 -Electric Forward Volumes as of 12/31/18 SENA Exelon NextEra Energy Resources City of Palo Alto Page 5 (400,000) (300,000) (200,000) (100,000) - 100,000 200,000 300,000 Ja n - 1 9 Fe b - 1 9 Ma r - 1 9 Ap r - 1 9 Ma y - 1 9 Ju n - 1 9 Ju l - 1 9 Au g - 1 9 Se p - 1 9 Oc t - 1 9 No v - 1 9 De c - 1 9 MT M D o l l a r A m o u n t Figure 3 -Electric Mark-to-Market Values as of 12/31/2018 SENA Exelon NextEra Energy Resources Note: The reason for the negative spike in July 2019 (in above Figure 3) is due to the market price volatility and the fact that when the 40MW of excess power for July 2019 was sold in October 2018, it was for a three-month period that included May and June 2019 (which have much lower market prices than July) resulting in the MTM paper loss reflected in the above graph. When compared to the City’s cost of this power compared to the selling price, the City has a total loss of $359,000 (based on market prices as of 4/9/19). Gas Supplies In order to serve the City’s natural gas needs, the City purchases gas on the monthly and daily spot markets. The City purchases all of its forecasted gas needs for the month ahead at a price based on the published monthly spot market index price for that month. Within the month, the City’s gas operator buys and sells gas to match the City’s daily needs if the actual daily usage is different from the forecasted daily usage. Those daily transactions are made at an average price based on the published daily spot market index. These costs are passed through directly to customers using a monthly rate adjustment mechanism, leaving the City with little or no price risk or counterparty risk exposure for the gas utility. Credit Risk Staff monitors and reports on counterparty credit risk based on the major credit rating agencies (S&P and Moody’s) scores, Ameresco has a 0.43 percent Expected Default Frequency (EDF) which is higher than the recommended EDF level. The EDF has improved since last year. Last year, the EDF was 0.68 percent and, as of writing of this report (March 27, 2019), the EDF is City of Palo Alto Page 6 0.25 percent. Staff is continuing to monitor Ameresco’s EDF and will continue to report to City Council in the semi-annual report. Table 1 below shows the EDF values for the City’s renewable energy counterparties. Table 2 below shows the EDF values and credit exposure for the City’s electric suppliers. There is virtually no credit exposure to the City’s gas suppliers since the supplies are purchased on a short-term basis. Table 1 - Renewable Counterparties Credit Ratings and EDFs as of 12/31/18 S&P Credit Rating Current Expected Default Frequency Moody's (EDF) Implied Rating Ameresco n/a 0.43%Ba3 BBB+0.27%Aa3 Source: CreditEdge website Renewable Counterparty Avangrid (fomerly Iberdrola) Table 2 - Credit Exposure and Expected Default Frequency of Electric Suppliers as of 12/31/18 Electric Counterparty Cost of Transaction Market Value of Transaction Current Expected Default Frequency Moody's (EDF) Implied Rating Exelon 1,286,940$ 1,460,645$ 0.02%Aa2 NextEra 292,020 375,720 0.01%Aaa SENA (2,212,032) (2,326,995) n/a Aa2 Totals (633,073)$ (490,630)$ A-8 83,700 142,442$ 52$ Cost vs. Market to Market (MTM) Value S&P Credit Rating Expected Loss (MTM x Expected Default Frequency) ($114,963)AA--$ 173,706$ BBB 43$ Electric Forward Mark-to-Market Values It is important to note that, for renewable energy companies, Council waived the investment grade credit rating requirement of Section 2.30.340(d) of the Palo Alto Municipal Code, which applies to energy companies that do business with the City. In addition, the City does not pay for renewable energy until it is received, thereby reducing risk. An EDF of 0.08% or below indicates supplier’s current expected default frequency falls within the investment grade range. An EDF above 0.08% indicates the supplier may have financial issues that require monitoring. Electric and Gas Supply Operations Reserves Adequacy As shown in Table 3 below, the Electric Supply Operations reserve’s unaudited balance as of December 31, 2018 is $20.0 million, which is $7.9 million below the minimum reserve guideline level. By year end, transfers from the rate stabilization and other reserves are expected to bring this to the middle of the reserve guideline. This balance is above the immediate 12-month credit, hydro, and other risks that have been identified, and are estimated at $5.6 million. The unaudited Gas Operations reserve balance as of December 31, 2018 is $5.0 million, which is $0.6 million below the minimum reserve guideline level. This isn’t indicative of the expected City of Palo Alto Page 7 year-end results. During the year, gas purchases are booked in advance of receipt of revenues from customers, resulting in timing differences during the fiscal year which impact the reserve balance. Table 3 - Electric Supply Operations and Gas Operations Reserve Levels for FY 2019 (Preliminary unaudited figures from City’s Financial System) Fund Reserve for Operations Balance as of 07/01/2018 ($ Millions) Changes to the Reserves for Operations ($ Millions) Unaudited Projected Reserve for Operations Balance as of 12/31/18 * ($ Millions) Minimum Guideline Reserve Level ($ Millions) Maximum Guideline Reserve Level ($ Millions) Electric $19.9 $0.1 $20.0 $27.9 $50.1 Gas $8.6 ($3.6)$5.0 $5.6 $11.2 FY 2019 * The accounting activity to date reflects what has been booked into the City’s financial system. These figures are preliminary until outside auditors have completed their review and the Comprehensive Annual Financial Report is produced. There could be significant changes to the supply operation reserve balances based on year-end adjustments that have not been booked yet. Exceptions to Energy Risk Management Policies, Guidelines, or Procedures There were no exceptions to the Energy Risk Management Policies, Guidelines, or Procedures to report during the first half of FY 2019. The last Energy Risk Management Report was transmitted to Council in June 2018 and covered the first half of FY 2018. Although staff has not provided a semi-annual update since then, the Energy Risk Management activities for the second half of FY 2018 were monitored. No reportable adverse activity during this period, and there were no exceptions to report besides the informational report for this period not being done. All future semi-annual information reports will be done.