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2018-10-01 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, October 1, 2018 Regular Meeting Council Chambers 6:00 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 Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. 1.CONFERENCE WITH LABOR NEGOTIATORS THIS ITEM HAS BEEN REMOVED. Special Orders of the Day 6:00-6:10 PM 2.Proclamation Honoring Cybersecurity Awareness Month REVISED 9/27/18 2 October 1, 2018 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. Study Session 6:10-7:15 PM 3.980 Middlefield Road [18PLN-00129]: Request for Prescreening of a Proposal to Amend the Existing Planned Community (PC) 2152 Zoning in Order to Change the Allowed Use From Mortuary to a Private Club or Similar use With Collaborative Office Workspaces and Areas for Workshops and Special Events. The Study Session Will Give the Council and the Community an Opportunity to Comment on the Applicant’s Proposal Prior to Submittal of a Formal Application. Environmental Assessment: Not a Project; any Subsequent Formal Application Would be Subject to the California Environmental Quality Act (CEQA). Zoning District: PC 2152 (Continued From September 10, 2018) Agenda Changes, Additions and Deletions City Manager Comments 7:15-7:25 PM Oral Communications 7:25-7:45 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 7:45-7:50 PM 4.Approval of Action Minutes for the September 10 and 17, 2018 Council Meetings Consent Calendar 7:50-7:55 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 5.Approval of an Extension of the Pilot Phase of the Southgate Residential Preferential Parking Program (RPP) for a Period of six Months 6.Approval of Contract Number C19171565 With Brown and Caldwell in the Total Amount Not-to-Exceed $2,923,357 to Provide Design Services for Secondary Treatment Process Upgrades (WQ-19001) at the Regional Water Quality Control Plant 7.Approval of Contract Amendment Number 2 With Verizon Wireless Through June 30, 2019, Utilizing the Western State Contracting Alliance (WSCA), California Participating Addendum for Wireless, Voice and Broadband Services, Accessories, and Equipment 8.Adoption of a Resolution Approving and Attesting to the Veracity of the 2017 Annual Power Source Disclosure Report 3 October 1, 2018 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. 9.Adoption of a Resolution Authorizing the City Manager to Purchase a Portion of the City’s Verified Emission Reductions Requirements From ClimeCo Corporation Under Specified Terms and Conditions During Calendar Years 2018 Through 2027, Inclusive 10.Approval of Contract Number C19173445 With Charles Sowers Studio, LLC in the Not-to-Exceed Amount of $175,000 for the Fabrication and Delivery of Artwork Associated With the Junior Museum and Zoo (JMZ); Acceptance of Fund Contributions From the Friends of JMZ; and Approval of a Budget Amendment in the Art in Public Places Capital Project (AC-86017) in the Capital Improvement Fund 11.Adoption of a new Memorandum of Agreement With the Palo Alto Police Management Association (PAPMA), International Association of Fire Fighters (IAFF), Local 1319, and Palo Alto Fire Chiefs' Association (PAFCA); and Approval of a Budget Amendment in the General Fund 12.SECOND READING: Adoption of an Ordinance Adding Sections 2.30.620 Through 2.30.690 to Title 2 of the Administrative Code to Establish Criteria and Procedures for Protecting Personal Privacy When Considering the Acquisition and use of Surveillance Technologies, and Provide for Ongoing Monitoring and Reporting (FIRST READING: September 10, 2018 PASSED: 8-1, Holman no) 12A. SECOND READING: Adoption of an Ordinance Amending Chapter 9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals, and Safety) of the Palo Alto Municipal Code to Require Relocation Assistance for No-fault Eviction for Multifamily Housing Developments Containing 50 or More Rental Units (Adopted on FIRST READING on September 17, 2018 (PASSED 8-1 Tanaka no)) Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:55-9:00 PM 13.Recommendations From the Human Relations Commission in Response to Council Resolution Number 9653 Reaffirming Palo Alto’s Commitment to a Diverse, Supportive, Inclusive, and Protective Community (Continued From August 27, 2018) 9:00-10:00 PM 14.PUBLIC HEARING: Adoption of an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 18.42.040 Related to Accessory and Junior Accessory Dwelling (ADU/JADU) Units to Clarify or Modify Various Provisions Including Setback Requirements for Detached ADU Q & A 4 October 1, 2018 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. Basements, Allowance for Setback and Daylight Plane Encroachments for Detached ADUs, Bonus Lot Coverage and Floor Area Eligibility, Bonus Floor Area Amount to Match Minimum Unit Size as Established by Building Code, Reduced Height Limit for Detached ADUs Located Within Identified Eichler Tracts, Replacement Parking Provisions as Applicable to JADUs, Allowance for Replacement Parking to be Located Within Driveways Located in Street-side Setbacks, Allowance for Existing Driveways to be Expanded to Accommodate Replacement Parking, Allowance for Noncomplying Structures to be Rebuilt as Part of Conversion to ADU, and Applicable Zoning Districts That Allow ADU Development; Finding the Ordinance Exempt From Review Under the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15061(b)(3); and Discussion of Other Potential ADU-related Regulations. The Planning & Transportation Commission Recommended Approval of the Ordinance 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. 5 October 1, 2018 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 Finance Committee Cancellation October 2, 2018 City Council Cancellation October 8, 2018 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Public Letters to Council Set 1 City of Palo Alto (ID # 9512) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 10/1/2018 City of Palo Alto Page 1 Summary Title: Cybersecurity Awareness Month Proclamation Title: Proclamation Honoring Cybersecurity Awareness Month From: City Manager Lead Department: City Clerk Attachments: • Attachment A: Cybersecurity Awareness Month Proclamation Proclamation CYBERSECURITY AWARENESS MONTH – OCTOBER 2018 WHEREAS, the City of Palo Alto recognizes it plays a vital role in identifying, protecting and responding to cyber threats that may have a significant impact on security and privacy; and WHEREAS, critical infrastructure sectors are increasingly reliant on information systems to support financial services, energy, telecommunications, utilities, health care and emergency response systems; and WHEREAS, the “Stop.Think.Connect.™” Campaign designated as the National Public Awareness Campaign implemented through a coalition of private companies, nonprofit and government organizations and academic institutions aimed at increasing the understanding of cyber threats and empowering the American public to be safer and more secure online; and WHEREAS, in support of the Cybersecurity Framework, and to better assist businesses and government entities in addressing cyber threats, the Center for Internet Security/Multi-State ISAC, the Council on Cybersecurity, the Governors’ Homeland Security Advisors Council, and public and private sector entities have developed a campaign to promote good cyber hygiene through actionable guidance for government and businesses, and to promote innovation, strengthen cybersecurity investment, and enhance resilience across all sectors; and WHEREAS, maintaining the security of cyberspace is a shared responsibility in which each of us has a critical role to play by being aware of computer security essentials that will improve the security of the City of Palo Alto’s information infrastructure and the economy; and WHEREAS, the U.S. Department of Homeland Security (www.dhs.gov/cyber) and the National Cybersecurity Alliance (https://staysafeonline.org/) have declared October as National Cybersecurity Awareness Month, where all citizens are encouraged to visit the “Stop.Think.Connect.” Campaign website (https://www.dhs.gov/stopthinkconnect) and put that knowledge into practice in their homes, schools, workplaces, and businesses. NOW, THEREFORE, I, Liz Kniss, Mayor of the City of Palo Alto, on behalf of the City Council do hereby proclaim that the City of Palo Alto officially supports National Cybersecurity Awareness Month and the National Public Awareness Campaign “Stop.Think.Connect.™” Presented: October 1, 2018 ______________________________ Liz Kniss Mayor City of Palo Alto (ID # 9614) City Council Staff Report Report Type: Study Session Meeting Date: 10/1/2018 City of Palo Alto Page 1 Summary Title: 980 Middlefield Road: Prescreening for PC Amendment Title: 980 Middlefield Road [18PLN -00129]: Request for Prescreening of a Proposal to Amend the Existing Planned Community (PC) 2152 Zoning in Order to Change the Allowed Use From Mortuary to a Private Club or Similar Use with Collaborative Office Workspaces and Areas for Workshops and Special Events. The Study Session Will Give the Council and the Community an Opportunity to Comment on the Applicant’s Proposal Prior to Submittal of a Forma l Application. Environmental Assessment: Not a Project; any subsequent formal application would be subject to the California Environmental Quality Act (CEQA). Zoning District: PC 2152 (CONTINUED FROM SEPTEMBER 10, 2018) From: City Manager Lead Department : Planning and Community Environment Recommendation Staff recommends that Council conduct a preliminary review (“prescreening”) and Councilmembers provide informal comments regarding the applicant’s request to make changes to the Planned Community (PC) 2152 zoning. In addition, staff seeks Councilmembers’ input on the proposed site improvements. Comments provided in the course of a prescreening are not binding on the City or the applicant. Executive Summary The applicant seeks preliminary feedback from the City Council concerning a proposal to amend the PC 2152 zoning for the subject parcel, located at the corner of Middlefield Road and Addison Avenue. The proposal includes changes to the development plan and to the proposed use of the site. The Comprehensive Plan land use designation is multi-family, while the site is currently zoned for use as a mortuary. The applicant proposes interior and exterior alterations to the existing building for its reuse as a City of Palo Alto Page 2 private club or similar use that provides co-working/office space, areas for workshops and small classes, and space for lectures and speaker events, among other uses, as described in further detail in the applicant’s project description in Attachment E. The project also includes exterior façade and site design modifications. A prescreening review is required for legislative changes, including PC amendments, prior to application submittal in accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A). Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Background In July 1963, the subject site included three parcels zoned R-3-P, R-3, and R-2, all three of which were rezoned to a Planned Community Zoning (PC 2152) to accommodate the mortuary use. The ordinance outlining the PC 2152 Zoning is included in Attachment B. Permitted uses in this ordinance include “mortuary and necessary related facilities, including off-street parking and employee’s residences.” Therefore, the proposed use of the site for any primary use other than a mortuary would not be allowed under the existing zoning. In 2014, Council suspended the creation of new planned community districts, but remained open to amendments to previously approved PCs. The project applicant requests Council’s preliminary feedback on an amendment to the existing PC Zoning at 980 Middlefield Road. The requirements for PC districts are stated in PAMC Section 18.38. To amend the PC, the Council would need to make the following required findings: (a) The site is so situated, and the use or uses proposed for the site are of such characteristics that the application of general districts or combining districts will not provide sufficient flexibility to allow the proposed development. (b) Development of the site under the provisions of the PC planned community district will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts. In making the findings required by this section, the planning commission and city council, as appropriate, shall specifically cite the public benefits expected to result from use of the planned community district. (c) The use or uses permitted, and the site development regulations applicab le within the district shall be consistent with the Palo Alto Comprehensive Plan, and shall be compatible with existing and potential uses on adjoining sites or within the general vicinity. Project Description A location map of the proposed site is included in Attachment A. The preliminary schematic drawings included in Attachment F communicate a concept plan as is appropriate for this stage City of Palo Alto Page 3 of project consideration. As shown in these schematic drawings and noted in the applicant’s project description in Attachment E, the applicant is proposing a modification to the use of the site as well as several modifications to the site design and exterior facades. The applicant’s description generally outlines the proposed use of the site as an establishment focused on providing “a vibrant, welcoming space for traditional and non -traditional professionals to collaborate, work, learn, find support, build community, and spend time with their families, friends, and neighbors.” Use of facilities would mostly be restricted to members. The three main uses are described as collaboration spaces, classes and workshops, and special events, as described further below. The applicant notes that on average, there would be approximately 150 members/guests utilizing the site at any given time during the day and 125 people using the site in the evening or on the weekend. However, the applicant proposes a maximum concurrent number of people that may use the site at up to 300 people during the day and up to 400 people during the evening or weekend hours. The applicant anticipates four to eight full time employees and ten to twenty part-time employees to manage the facility. The hours of operation would generally be 7:00 a.m. to 7:00 p.m. seven days a week , but the applicant notes that (1) the people using the office space would arrive earlier and/or depart later, and (2) special events and classes may occur outside of those hours. The project description seems to anticipate outdoor events with amplified sound occurring until 9 p.m. Sunday through Thursday, and until 10 p.m. Friday and Saturday. Indoor events are anticipated to last until midnight. Proposed exterior modifications to the building would primarily include the creation of a new drop-off area parallel to Addison Avenue, revisions to the parking area; the addition of a new play area; and revisions to the exterior facades. The interior floor plan would be redesigned to include individual and co-working spaces, classroom areas, a gallery, a small gym, a multipurpose room with a stage, and kitchen areas. Classes and Workshops The applicant states that the facility would host up to 20 classes per day for youth and adults with up to 25 attendees per class. Types of classes could include music classes, visual and/or performing art programs, cooking, professional development, dance, fitness, health/wellness, language or academic/tutoring programs. Participation of classes would require pre-registration and registration fees. Some classes would be open to all members of the public while others would be open to those paying for regular membership of the facility. Collaboration Space The majority of the interior would be redesigned to accommodate co-working/office space with several adjacent conference/meeting room spaces. Approximately 100 people would have access (through membership) to the co-working and other breakout space monthly. The applicant states that, although there would be up to 100 members, they anticipate that no City of Palo Alto Page 4 more than 50 people would utilize this collaboration space at any given time throughout the day because they would arrive and depart at various times. The facility would also offer food and beverage options to members and guests and include spaces that would be ancillary to the office use, including a fitness room, an atrium/lounge area, garden and outdoor space, and a patio area with tables. Special Events The applicant proposes up to ten events per week with up to 75 attendees, no more than 250 times per year, and up to four events per week with more than 75 attendees, no more than 150 times per year. As stated in the project description, the organization would offer membership to the public. The applicant also explains that, as a community benefit, the rental space would: • be made available for non-profit and/or charity events at least twelve times a year; • host free and under-market rate classes, workshops, or other events for the public community at least six times per year; and • host, free of charge, at least ten meetings and/or small gatherings per year for the purpose of community outreach, volunteering, charity or other like uses. The project site currently consists of three parcels. It is anticipated that any formal application would also include a request to merge the three lots. The refore, the project data on the conceptual plans reflects the area of the resulting merged lot. Surrounding Uses Adjacent zoning and uses include Addison Elementary School on a PF zoned parcel to the South (across Addison Avenue), single-family residential uses to the east in the R-1 zone district (across Middlefield Road), and multi-family residential uses to the north and east on a large parcel zoned PC 2836. Surrounding buildings generally range from one to two stories in height. Discussion Staff has identified the following key considerations for Council, and summarizes each below: A. Conformance with the Comprehensive Plan and Zoning Designation ; B. Traffic and Parking; C. Historical Evaluation; and D. Public Comments Conformance with Comprehensive Plan and Zoning Designation The project site is designated multi-family residential on the Comprehensive Plan Land Use Map. The definition in the Land Use and Community Design Element for this designation does not speak to uses other than housing; however, the City’s Zoning Code does allow for some City of Palo Alto Page 5 additional uses within residential zoned districts either by right or with approval of a Conditional Use Permit. It should be noted that the City defines community center in Palo Alto Municipal Code (PAMC) Section 18.04.030(34) as “a place, structure, area, or other facility used for and providing religious, fraternal, social and/or recreational programs generally open to the public and designed to accommodate and serve significant segments of the community.” Though the applicant likens the proposed use to a community center, it is not clear that the project, as currently proposed, meets the City’s definition of a community center. Membership is generally open to the public and the applicant has offered, as a community benefit, use of the site on a limited basis to non-members. However, use of the facilities is generally restricted to paying members, and membership is limited. Therefore, the proposed use may also be considered a private club use, which is permitted in certain districts, but not specifically defined in the municipal code. In addition, a significant portion of the floor plan is dedicated to co -working use, which may not be consistent with either a community center or a private club use. The co- working use and ancillary space is most consistent with the definition of general office use and; therefore, the use would likely be subject to the citywide office/Research and Development cap requirements, which limits the addition of new office space in the City to 50,000 square feet of new space per year. Staff notes that the residential zoning regulations in the City’s Zoning Code do allow Community Centers as a conditionally permitted use in any residential district, while private club uses are conditionally permitted only in the RM-40 district. Office uses (other than home occupation) are not permitted in any residential zones. The current PC 2152 Zoning only allows a mortuary use; therefore, an amendment to the PC would be required to accommodate the proposed use. Because the project proponent seeks to amend an existing PC zone, any use may be considered by the City Council. Traffic and Parking There are currently 45 parking spaces provided on the site. The proposed project would reduce the number of on-site parking spaces to 36 spaces. For a private club use, the City’s Zoning Code typically requires one space for each four seats, or four person capacity, based on maximum use of all spaces at any one time. Office spaces typically require one space per 250 square feet of gross floor area. The applicant has stated that up to 150 people would be anticipated to use the facilities on average throughout the day, a maximum of 300 people may utilize the space during regular work/school hours, and up to 400 people may utilize the space during evening or weekend hours. The applicant notes that the facility would “encourage walking, biking, rideshare, carpooling, or public transportation for all patrons” and notes that the neighborhood is walkable. The applicant also states that they may utilize off -site lots and shuttles and/or valet parking for large events. However, even with special accommodations for larger events, as currently proposed, it is not clear that the proposed parking would be City of Palo Alto Page 6 sufficient to accommodate the day-to-day use at the site. If there is Council interest in changing the current PC zoning, staff would recommend that as part of any future project, specific parameters be defined for the use of the facility in order to ensure that the number of parking spaces is appropriate for the maxi mum anticipated number of users at any given time. Staff also notes that the American’s with Disabilities Act (ADA) compliant spaces on the plans do not appear to meet the City’s municipal code or California Building Code requirements. Therefore, further consideration of the parking layout would also be necessary as part of any formal application. Staff also notes that the proposed size and hours of operations could be impactful to operation of Addison Elementary. Further consideration and coordination with the school would be required as part of any formal application to ensure the proposed operation of the facility would not conflict with school operations. The project also includes changes to the site to create a drop-off area, which would require a new curb cut on Addison Avenue. This drop-off zone would allow transit network companies (e.g. uber, lyft, etc.) or parents with children to drop-off and pick-up passengers without impacting traffic flow on Addison Avenue. Further analysis of pick-ups and drop-offs, in coordination with the City’s Transportation Division , would be required as part of any formal application, to ensure that the site is designed appropriately to prevent queueing from impacting local vehicular circulation. The applicant notes that during construction, workers would park on site, and arrival and departure times would be scheduled to avoid school pick-ups and drop-offs. The applicant is also aware of concurrent construction activities occurring at Addison Elementary and anticipates further coordination with Addison Elementary School’s contractor to reduce cumulative construction impacts to the neighbors and school. Historical Evaluation The City contracted with Page & Turnbull to prepare a Historic Resource Evaluation (HRE) for the existing buildings on the subject parcels. The HRE prepared for these properties is included in Attachment D. The HRE concludes that the existing mortuary building is eligible for listing in the California Register of Historic Resources (CRHR) under Criter ion 3, Architecture/Design, for its “distinctive Midcentury Modern design, as a midcentury property type, and as work of architect Leslie Nichols.” As described further in the report Leslie I. Nichols was a prominent local architect best known for designing the Palo Alto City Hall at 1313 Newell Road (now the Palo Alto Art Center). Characteristic Midcentury Modern elements include projecting eaves, cantilevered overhangs, flat roof forms, a vaulted roof form, an articulated primary façade, wood siding, brick veneer, stones used as accent material, and several other features seen on this building. Because the building is found to meet the criteria for eligibility for the California Register of Historic Resources (CRHR), site and building exterior modifications would be required to comply with the Secretary of the Interior’s Standards for Rehabilitation (Standards), City of Palo Alto Page 7 which would require modifications to the proposed façade revisions as part of any formal application. If the plans are not modified for compliance with the Standards, preparation of an environmental analysis analyzing the project’s significant impact on a historic resource would be necessary. Public Comment Several public comments were received following noticing of this prescreening application. Some of these comments were provided verbally; written comments are included in Attachment C. One nearby resident wanted to better understand how the site would be used, expressing that they would not be supportive of an office use but may be supportive of a true community center use. This same resident and one additional nearby resident expressed that, in the past, the site has been used for unpermitted events that have generated excessive noise and traffic and impacted parking in the vicinity. Therefore, the neighbors want to better understand the parking and noise impacts of the proposed project. In addition, two members of the public noted that construction is anticipated over the next two years at Addison Elementary and in the adjacent right-of-way. Therefore, if a formal application is approved, construction at 980 Middlefield Road might coincide with construction activities at the elementary school. As part of any formal application, staff would further assess the potential impacts of noise, traffic, and parking associated with construction, especially simultaneous construction with the adjacent elementary school, as well as those impacts associated with the ongoing use of the site. Timeline Following the prescreening review, the applicant will consider Council’s comments and determine how they want to proceed. Any formal application would be subject to the Planning and Transportation Commission (PTC) and Council’s purview, similar to a zoning code text amendment process. Physical changes to the site are also anticipated to require a recommendation from the Architectural Review Board (ARB) as part of the Architectural Review process and may also require a recommendation from the Historical Resources Board (HRB). Environmental Review The prescreening is a preliminary review process in which Councilmembers may provide comment, but no formal action will be taken. Therefore, no review under the California Environmental Quality Action (CEQA) is required at this time. A full review under CEQA would be initiated with the formal filing of a development application. Attachments: Attachment A: Location Map (PDF) City of Palo Alto Page 8 Attachment B: Planned Community (PC) Ordinance 2152 (PDF) Attachment C: Public Comments (PDF) Attachment D: Historic Resource Evaluation (PDF) Attachment E: Project Description (PDF) Attachment F: Project Plans (DOCX) 120-06-010 003-33-052 003-33-051 003-33-008 003-33-010 003-33-009 on_Elementary School 200.0' 90.0' 200.0' 90.0' 37.5' 400.0' 0.0' 500.0' 75.0' 112.5' 75.0' 112.5' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 125.0 112.5' 110.0' 50.0' 110.0' 50.0' 250.0' 50.0' 150.0' 50.0' 150.0' 50.0' 150.0' 40.0' 100.0' 40.0' 100.0' 110.0' 50.0' 110.0' 50.0' 150.0' 50.0' 150.0' 50.0' 50.0' 200.0' 50.0' 50.0' 112.5' 50.0' 112.5' 50.0' 150.0' 200.0' 200.0' 50.0' 200.0' 150.0' 150.0' 200.0' 200.0' 50.0' 200.0' 150.0' 150.0' 200.0' 200.0' 50.0' 200.0' 150.0' 150.0' 200.0' 210.0' 650 1023-_1027 1051 900-_940 980 637 727 717 703 953 945 92 601-_635 666-_698 709 711 935 1007 1015 1012 1003 708 728 733 645 ADDISON AVENUE MIDDLEFIELD ROAD VENUE MIDDLEFIELD ROAD ADDISON AVEN RM- 6 PC-2152 PF This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Assessment Parcel Historic Site Special Setback abc Known Structures Tree (TR) Zone Districts Project Site 0' 87' 980 Middlefield Road CITY OF PALO ALTOI N C O R P O R A T E D CAL I F ORN I A P a l o A l t o T h e C i t y o f A P R I L 1 6 1 8 9 4 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto chodgki, 2018-05-17 09:09:26 (\\cc-maps\Encompass\Admin\Personal\Planning.mdb) ,, ... I .• #.,_ • ... : ~ ~. \ .:-~·· "',,~~!'·"··' T '· ... ~:-' .. :·· .;· •• '. ' ·:· •••• '~ J :r . '.' . " . . . ' ' : .. '. ' . ' ' ~ • ~ . . . ' : ~ .,_ ' 'I· ORDIN.i.NCE NO.. 2152 ORDINANCE OF THE Ct 1UNCIL OF THE CITY OF ?ALO ALTO AMENDING SECTI\)N 3 02 OF ORDINANCE NO. 1.324, THE ZONING ORDINANCE, l :HANGING TilE ZONING OF CERTAIN PROPERTY KNOl,ffl AS 'l8Q MIDDLEFIEI~O RO...:\D FROI."i R-3-P > R-3 A..TW R-2 TO P-C The Council of th1e City of Palo Alto d.oes ORDAIN as follows: SECTION 1._ Section 3,.0::.,, the Zoning Map) of the Zoning Ordinance No .. 1324 ~ is hereb; · amended to change a district from R"".3-P, R-3 and R-2 to !?-C fo·: the property at 980 Middlefield Road. SECTION 2. A map descr .. oing said affected property and the zone change co'lltecplat,ed her ~by) and a Development Plan under Section 16.07 of the zc,ning )rdinance is affixe.d hereto, marked EXHIBIT A and by refer,~:::nce m tde a part hereof. SECTION 3. The D·evelopnent Plan is approved in accordance with the .following condition;: (a) Per.mitted Us·~: (b) (c) The permitted use >hall be a mortuary and necessary related facili.ties, including off-street parking and employees 1 res i.den ~es. Nature of De·::::.E:lOPpl~: Off-street parking, landscaping~ building location dimension and heig1t shall be substantially as indicated on t:he a)proved development plan. Si_gns: Si.gns shall 'be limLted to those signs existing on the premises. (d) E.xterior Li,ii~1t.!_n._g_: Exterior ligbting ~hall be designed, constructed, and installed in such a manner as to protect neighboring res .idential proper ::i.es .. · (e) pev~lg_p_m~t :5chedu £ Construction towar1 i completion. of the entire complex shall be.gin ~,.rithin six months fro;':D Cou:n. il approval and shall be compl,~ted within one year thereafter. - 1 - •.. - .. t ' SECTION 4. Thi~; ordi1 ~.a.nce shall become 1'-dfecti ve upon J) .. the expiration of thixty da:·s frcrm its passage. INTRODUCED: July 9, 1963 •• July 22, 1963 by unardmous vote PASSED: ~- APPROVED: ,, - _hlf rlu~ Mayor \ .. / .(,I •' >I,.. .( ~ J '1 ,/ .~·· _.,._,' -~•' II :~; I •' '":" l ... / ./ I j ._,Ft-. I '/ / .. ,, - 2 - , . '.' • • ;' ~ . • ,, • , .' .-' ', , , , , ' ? \ , : • , , ' , I ~ ' ' , : 1 • • • ' • 'l • , -'" *A 0 /' ~ Ho , ..... ,. ..... + ', ~ 9··.0 ,\ -., From:Kunjan Shah To:Hodgkins, Claire Cc:Tom Hodges Subject:Re: 980 Middlefield Road Question Date:Wednesday, May 09, 2018 1:35:25 PM Attachments:image001.jpg Hi Claire, My boss - Tom Hodges is copied here. Please reach out to him to coordinate when the 980 Middlefield projects starts the Planning entitlement process. Thank you very much for taking the time to explain everything so well! K. Kunjan Shah fs3|Hodges 714.864.8186 Experience. Trust. On Tue, May 8, 2018 at 3:20 PM, Hodgkins, Claire <Claire.Hodgkins@cityofpaloalto.org> wrote: Good afternoon Kunjan, I wanted to follow up on an e-mail you had sent to Amy French a few weeks back. I’m not sure if she has already responded to you but this project ended up being assigned to me at intake so I wanted to follow up and make sure you received a complete answer to your question. First, I want to clarify that the current 980 Middlefield Road proposal for a prescreening with Council is not a formal application in that the applicant is currently seeking preliminary feedback from Council and whether there would be any interest from them/the city in considering this proposed project. Council would not make any formal decision on the project—they would only provide comments. Based on those comments, the applicant will choose whether to move forward with filing a formal application or not. It’s difficult to assess the exact process and how long it may take given that the project may change significantly based on input from Council and the findings of a historic evaluation. However, I think it will likely take up to six months to process any entitlements, and if approved, another month or two to process the building permit so the answer is yes, it is possible that if approved, construction could start within the next two years. The prescreening is on June 11, 2018 so we will know more after we receive comments from Council. I will highlight your concerns as part of my staff report to Council. I will be sure to keep you in the loop if/when a formal application is filed. Feel free to contact me if you have any further questions. Regards, Claire Claire Hodgkins, Associate Planner 250 Hamilton Avenue | Palo Alto, CA 94301 O: 650-329-2116 | E: claire.hodgkins@cityofpaloalto.org 1 French, Amy From:Kunjan Shah <kunjan@fs3h.com> Sent:Tuesday, April 17, 2018 11:48 AM To:French, Amy Subject:980 Middlefield Road HI Amy, I am the project manager for the PAUSD Addison Elementary School modernization project across the road from 980 Middlefield. The Addison project will start construction on June 4, the 1st day of summer break. We were just informed of the upcoming project at 980 Middlefield and I was writing to get some information on the timeline. Is the pre-screening being conducted for a possible zoning variance? My intent is to try and guage if there is any possibility of construction on this project starting while the 2-yr long project at Addison is underway. If possible, could you please give me a call to discuss? My cell: 510-2999382. Thank you for your help! -- Kunjan Shah fs3|Hodges 510.299.9382 Experience. Trust. 1 French, Amy From:Peter Phillips <pkphillips@gmail.com> Sent:Tuesday, April 17, 2018 10:34 AM To:French, Amy Subject:Project at 980 Middlefield Road Hi Amy, We met a few yrs ago about the Addison Elem remodel project. Recently some signs went up at 980 Middlefield - the previous mortuary. We are about to start construction - June of this year - lasting for approx 2yrs. The work that is planned for 980 Middlefield - will that require construction and if so when is that anticipated? A concern is with two construction projects occurring at the same time that close to one another - the limited parking around will be impacted. Thanks, - Peter From:Peter Phillips To:Hodgkins, Claire Subject:Re: 980 middlefield Road question Date:Thursday, May 10, 2018 10:46:13 AM Hi Claire, Thanks for your response, I was beginning to wonder as I had not heard from Amy. I knew this was in the early stages of planning, I guess we have to tune in on June 11th to figure out what kind of project is being considered. Peter - Peter On Tue, May 8, 2018 at 3:27 PM, Hodgkins, Claire <Claire.Hodgkins@cityofpaloalto.org> wrote: Peter, I wanted to follow up on an e-mail you had sent to Amy French a few weeks back. I’m not sure if she has already responded to you but this project ended up being assigned to me at intake so I wanted to follow up and make sure you received a complete answer to your question. First, I want to clarify that the current 980 Middlefield Road proposal for a prescreening with Council is not a formal application in that the applicant is currently seeking preliminary feedback from Council and whether there would be any interest from them/the city in considering this proposed project. Council would not make any formal decision on the project—they would only provide comments. Based on those comments, the applicant will choose whether to move forward with filing a formal application or not. It’s difficult to assess the exact process and how long it may take given that the project may change significantly based on input from Council and the findings of a historic evaluation. Currently there is some remodeling planned but the scope of the remodeling could change. Based on current plans, I think it will likely take up to six months to process any entitlements, and if approved, another month or two to process the building permit so it is possible that, if approved, construction could start within the next two years. The prescreening is on June 11, 2018 so we will know more after we receive comments from Council. I will highlight your concerns as part of my staff report to Council. I will be sure to keep you in the loop if/when a formal application is filed. Feel free to contact me if you have any further questions. Regards, Claire Claire Hodgkins, Associate Planner 250 Hamilton Avenue | Palo Alto, CA 94301 O: 650-329-2116 | E: claire.hodgkins@cityofpaloalto.org imagining change in historic environments through design, research, and technology Page & T urnbull 980 MIDDLEFIELD ROAD AND 637-45 ADDISON AVENUE HISTORIC RESOURCE EVALUATION PALO ALTO, CALIFORNIA [18144] PREPARED FOR: CITY OF PALO ALTO AUGUST 8, 2018 Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 Page & Turnbull, Inc. TABLE OF CONTENTS I. INTRODUCTION ...................................................................................................... 1 METHODOLOGY .................................................................................................................................... 2 SUMMARY OF FINDINGS ....................................................................................................................... 2 II. CURRENT HISTORIC STATUS .............................................................................. 3 NATIONAL REGISTER OF HISTORIC PLACES ............................................................................................ 3 CALIFORNIA REGISTER OF HISTORICAL RESOURCES ............................................................................... 3 CALIFORNIA HISTORICAL RESOURCE STATUS CODE ............................................................................... 3 PALO ALTO HISTORIC INVENTORY .......................................................................................................... 3 PALO ALTO HISTORICAL SURVEY UPDATE .............................................................................................. 4 III. ARCHITECTURAL DESCRIPTION ........................................................................ 6 SURROUNDING NEIGHBORHOOD ...................................................................................................... 16 IV. HISTORIC CONTEXT .......................................................................................... 19 PALO ALTO HISTORY ............................................................................................................................ 19 ROLLER HAPGOOD & TINNEY .............................................................................................................. 22 SITE HISTORY: 980 MIDDLEFIELD ROAD AND 637-45 ADDISON AVENUE ............................................ 25 CONSTRUCTION CHRONOLOGY .......................................................................................................... 31 MIDCENTURY MODERN STYLE ............................................................................................................ 31 ARCHITECT LESLIE I. NICHOLS (1894- 1969) ....................................................................................... 32 V. EVALUATION ........................................................................................................ 36 CALIFORNIA REGISTER OF HISTORICAL RESOURCES ............................................................................. 36 CHARACTER-DEFINING FEATURES ...................................................................................................... 37 INTEGRITY ............................................................................................................................................ 38 VI. CONCLUSION ...................................................................................................... 40 VIII. REFERENCES CITED.......................................................................................... 41 PUBLISHED WORKS ............................................................................................................................. 41 UNPUBLISHED RECORDS .................................................................................................................... 42 INTERNET SOURCES ............................................................................................................................ 42 Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 1 - Page & Turnbull, Inc. I. INTRODUCTION This Historic Resource Evaluation (HRE) has been prepared at the request of the City of Palo Alto Planning and Community Environment Department for 980 Middlefield Road (APN 120-05-077) and two associated rear lots addressed 637-45 Addison Avenue (APN 120-05-052 and APN 120-05- 076) in Palo Alto, California (Figure 1 to Figure 2).1 The mortuary building at 980 Middlefield Road (the subject building) was designed by prominent local architect Leslie Nichols and constructed in 1951 by the contracting firm Aro & Okerman. 980 Middlefield Road is located at the junction of the University South and Community Center neighborhoods, immediately west of the Middlefield Road and Addison Avenue intersection. The subject building is set on a square lot; a driveway extends along the northwest edge of the lot and provides access to the rear lots. The rear lots contain a 1964 caretaker residence, a garage, a carport, asphalt parking spaces, and a faux turf lawn. Figure 1: Assessor Block map. 980 Middlefield Road and rear lots 637-45 Addison Avenue, shaded orange. Source: Santa Clara County Assessor. Edited by Page & Turnbull. 1 Based on the 1949 Sanborn Fire Insurance map, the two lots at 637-45 Addison Avenue previously included 635 and 657 Addison Avenue as well. These (developed) lots were merged to two lots addressed 637 -45 Addison Avenue at an unknown date. The rear lots will be referenced as 637-45 Addison Avenue throughout this report. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 2 - Page & Turnbull, Inc. Figure 2. Aerial view of 980 Middlefield Road and rear lots 637-45 Addison Avenue, shaded orange. Source: Google Earth, 2018. Edited by Page & Turnbull. The subject building has not been previously listed, or found eligible for listing, to the National Register of Historic Places (National Register), California Register of Historical Resources (California Register), or local City of Palo Alto Historic Inventory, nor is it located within the boundaries of any recorded historic district. METHODOLOGY This Historic Resource Evaluation provides a summary of previous historical surveys and ratings, a site description, historic context statement, and an evaluation of the property’s individual eligibility for listing in the California Register of Historical Resources. Page & Turnbull prepared this report using research collected at various local repositories, including the Palo Alto Rinconada Public Library, Palo Alto Historical Association, City of Palo Alto Building Inspection, Ancestry.com, and various other online sources. Page & Turnbull conducted a site visit in June 2018 to review the existing conditions and to photograph the property in order to prepare the descriptions and assessments included in this report. All photographs were taken by Page & Turnbull in June 2018, unless otherwise noted. SUMMARY OF FINDINGS Upon evaluation of 980 Middlefield Road and 637-45 Addison Avenue, Page & Turnbull finds the mortuary building at 980 Middlefield Road to be eligible for listing in the California Register of Historical Resources under Criterion 3 (Architecture) for its Midcentury Modern design, as a representative midcentury property type, and as a work of architect Leslie Nichols. Thus, the property appears to qualify as a historic resource for the purposes of review under the California Environmental Quality Act (CEQA). The ancillary buildings and landscape features on the two associated parcels at 637-45 Addison Avenue do not contribute to the mortuary’s historic significance or eligibility. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 3 - Page & Turnbull, Inc. II. CURRENT HISTORIC STATUS The following section examines the national, state, and local historical ratings currently assigned to 980 Middlefield Road and 637-45 Addison Avenue. NATIONAL REGISTER OF HISTORIC PLACES The National Register of Historic Places (National Register) is the nation’s most comprehensive inventory of historic resources. The National Register is administered by the National Park Service and includes buildings, structures, sites, objects, and districts that possess historic, architectural, engineering, archaeological, or cultural significance at the national, state, or local level. 980 Middlefield Road and 637-45 Addison Avenue are not currently listed in the National Register of Historic Places individually or as part of a registered historic district. CALIFORNIA REGISTER OF HISTORICAL RESOURCES The California Register of Historical Resources (California Register) is an inventory of significant architectural, archaeological, and historical resources in the State of California. Resources can be listed in the California Register through a number of methods. State Historical Landmarks and National Register-listed properties are automatically listed in the California Register. Properties can also be nominated to the California Register by local governments, private organizations, or citizens. The evaluative criteria used by the California Register for determining eligibility are closely based on those developed by the National Park Service for the National Register of Historic Places. 980 Middlefield Road and 637-45 Addison Avenue are not currently listed in the California Register of Historical Resources individually or as part of a registered historic district. CALIFORNIA HISTORICAL RESOURCE STATUS CODE Properties listed by, or under review by, the State of California Office of Historic Preservation are assigned a California Historical Resource Status Code (Status Code) between “1” and “7” to establish their historical significance in relation to the National Register of Historic Places (National Register or NR) or California Register of Historical Resources (California Register or CR). Properties with a Status Code of “1” or “2” are either eligible for listing in the California Register or the National Register, or are already listed in one or both of the registers. Properties assigned Status Codes of “3” or “4” appear to be eligible for listing in either register, but normally require more research to support this rating. Properties assigned a Status Code of “5” have typically been determined to be locally significant or to have contextual importance. Properties with a Status Code of “6” are not eligible for listing in either register. Finally, a Status Code of “7” means that the resource either has not been evaluated for the National Register or the California Register, or needs reevaluation. 980 Middlefield Road and 637-45 Addison Avenue are not listed in the California Historical Resources Information System (CHRIS) database as of 2012. This means the property has not been formally evaluated using California Historical Resource Status Codes and/or the status code has not been submitted to the California Office of Historic Preservation. PALO ALTO HISTORIC INVENTORY The City of Palo Alto’s Historic Inventory, completed in 1979, lists noteworthy examples of the work of important individual designers and architectural eras and traditions as well as structures whose background is associated with important events in the history of the city, state, or nation. The survey that produced the inventory encompassed approximately 500 properties and was largely limited to areas in and near the historic core of Palo Alto. The inventory is organized under the Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 4 - Page & Turnbull, Inc. following four Categories: ▪ Category 1: An “Exceptional Building” of pre-eminent national or state importance. These buildings are meritorious works of the best architects, outstanding examples of a specific architectural style, or illustrate stylistic development of architecture in the United States. These buildings have had either no exterior modifications or such minor ones that the overall appearance of the building is in its original character. ▪ Category 2: A “Major Building” of regional importance. These buildings are meritorious works of the best architects, outstanding examples of an architectural style, or illustrate stylistic development of architecture in the state or region. A major building may have some exterior modifications, but the original character is retained. ▪ Category 3 or 4: A “Contributing Building” which is a good local example of an architectural style and relates to the character of a neighborhood grouping in scale, materials, proportion or other factors. A contributing building may have had extensive or permanent changes made to the original design, such as inappropriate additions, extensive removal of architectural details, or wooden facades resurfaced in asbestos or stucco. 980 Middlefield Road and 637-45 Addison Avenue are not listed in the Palo Alto Historic Inventory under any category.2 PALO ALTO HISTORICAL SURVEY UPDATE Between 1997 and 2000, a comprehensive update to the 1979 Historic Inventory was undertaken by historic preservation firm Dames & Moore. The goal of this update was to identify additional properties in Palo Alto that were eligible to the National Register. This effort began with a reconnaissance survey of approximately 6,600 properties constructed prior to 1947. The reconnaissance survey produced two Study Priority lists. In January 1999, Dames & Moore prepared an interim findings report that listed preliminary evaluations of the National Register and California Register eligibility of Study Priority 1 and 2 properties.3 Approximately 600 properties were identified as Study Priority 1, indicating they appeared individually eligible for listing in the National Register under Criterion C (Architecture). Approximately 2,700 properties were identified as Study Priority 2, representing those properties that did not appear individually eligible to the National Register under Criterion C (including common local building types) but retained high integrity. The reconnaissance survey was followed by an intensive-level survey of all Study Priority 1 properties.4 Historic research was conducted on the owners, architects/builders, and past uses of the Study Priority 1 properties. Research also informed the preparation of historic context statements on topics such as local property types, significant historical themes, and prolific architects and builders, in order to identify any potential significant associations of Study Priority 2 properties. 291 properties were found potentially eligible as individual resources to the National Register and California Register. 1,789 further properties were found potentially eligible to the California Register only. The survey update effort concluded with California Department of Parks and Recreation (DPR) 523 forms prepared for those 291 properties that initially appeared eligible for listing in the National 2 “Palo Alto Historic Buildings Inventory.” http://www.pastheritage.org/inventory.html 3 Dames & Moore. “Study Priority 1 and Study Priority 2 Properties: Preliminary Assessments of Eligibi lity for the National Register or California Register.” Prepared for the City of Palo Alto Planning Division. January 1999. 4 Dames & Moore. “Final Survey Report – Palo Alto Historical Survey Update: August 1997-August 2000.” Prepared for the City of Palo Alto Planning Division. February 2001. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 5 - Page & Turnbull, Inc. Register. Of the 291 properties, 165 were ultimately found to be eligible to the National Register. These DPR 523 forms were submitted to the California Office of Historic Preservation. Because the survey focused on determining National Register eligibility, the project did not finalize the preliminary evaluations regarding potential California Register eligibility. The City of Palo Alto did not formally adopt any findings from the Dames & Moore study. The subject property was not surveyed due to the fact that 980 Middlefield Road was constructed in 1951, the caretaker’s residence at 637 Addison Avenue was constructed in 1964 (both after 1947), and the building at 645 Addison Avenue was demolished in 1976. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 6 - Page & Turnbull, Inc. III. ARCHITECTURAL DESCRIPTION The following architectural description applies to 980 Middlefield Road, located west of the Middlefield Road and Addison Avenue intersection in the Palo Alto. The separate, yet associated rear lots are described in the “Landscape Features and Outbuildings” section that follows. The 10,000 square-foot subject parcel is situated on flat land. The one-story midcentury building was constructed in 1951 and features an irregular rectilinear plan. The facades, as described in this report, are outlined in the diagram below (Figure 3). The main, double-height volume of the building is capped with a composite shingle-clad gable roof; the remainder of the building features a multi-level flat roof (Figure 4). All roof portions feature overhanging eaves with wood paneled soffits. The building is primarily clad in stucco and wood siding; a portion of the primary façade features sawtooth stone construction. Fenestration includes wood doors, steel-sash wood-frame casement/fixed windows, fixed wood-sash and wood-frame windows, and fixed ribbon windows. Windows retain their original sashes and frames, unless otherwise noted. Windows are casement, unless otherwise noted as fixed. Figure 3: 980 Middlefield Road, facades labeled and colored. Source: Google Maps, 2018. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 7 - Page & Turnbull, Inc. Figure 4: 980 Middlefield Road, view looking west from the intersection of Middlefield Road and Addison Avenue. Primary (Northeast) Façade The primary (northeast) façade fronts Middlefield Avenue. The far left (south) portion of the northeast façade consists of a recessed, stuccoed, flat roofed volume containing a primary entrance vestibule (Figure 5 to Figure 6). The recessed primary entrance vestibule contains a wood door with three punched lites, set within a wood surround featuring 16 lites set behind geometric wood screens (Figure 7). To the right of the primary entrance is a southeast-facing plane with an open gable clad in v-pattern wood siding (Figure 8 to Figure 9). A wood-carved geometric relief sits within the gable. A wood pergola structure projects above a stone base planter and the lower portion of the plane, which is clad in vertical wood siding (Figure 10). The recessed stuccoed volume and the southeast-facing gabled plane form two sides of a sheltered entrance courtyard, to be discussed in the “Landscape Features” section to follow. The main, double-height portion of the northeast façade features a stone sawtooth wall (Figure 11). Fixed southeast-facing windows are located within the sawtooth fins, above sections of vertical wood siding (Figure 12). At the far right (north) portion of the façade is a geometric wood screen that shields an opaque fixed window (Figure 13). Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 8 - Page & Turnbull, Inc. Figure 5. Recessed stuccoed portion of primary façade with recessed entrance vestibule at image right, view looking southwest. Figure 6: Recessed stuccoed portion of primary façade with recessed entrance vestibule, view looking southwest. Figure 7: Detail of wood door with punched lites, wood surround, 16-lite geometric wood screen Figure 8. Southeast-facing plane of primary façade, view looking northwest. Figure 9: V-pattern wood siding within southeast-facing open gable, with central geometric relief. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 9 - Page & Turnbull, Inc. Figure 10: Lower portion of southeast-facing plane, clad in vertical wood siding, situated above a stone base planter. Figure 11: Main sawtooth portion of primary façade fronting Middlefield Avenue, view looking southwest. Figure 12: Sawtooth stone wall with fixed windows above wood siding, view looking northwest. Figure 13: Geometric wood screen shielding opaque fixed window, view looking southeast. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 10 - Page & Turnbull, Inc. Northwest Façade The northwest façade faces an asphalt driveway. The main gabled volume sits at the far left (north) portion of the façade and largely mirrors the southeast-facing gabled plane (Figure 14).5 The central portion of the northwest façade features a recessed vestibule with a deeply cantilevered roof. The recessed vestibule contains two wood doors (Figure 15 to Figure 16). The stone construction of the double-height volume partially wraps around into the recessed vestibule. The right (south) portion of the northwest façade contains a wood single door with opaque glazing and a lower vent, two paired steel-sash wood-frame casement windows flanked by fixed lites, and a wood single door (Figure 16 to Figure 17). Figure 14. Northwest façade, view looking south. Figure 15. Stone wall and wood door leading into double-height volume, view looking northeast. Figure 16: Recessed vestibule with cantilevered roof. Partially glazed door and paired casement windows at image right, view looking south. Figure 17. Two casement windows flanked by fixed lites, and wood door at image right, view looking south. Rear (Southwest) Façade The rear façade features recessed planes at the far left (north) and right (south) (Figure 18). The left recessed portion contains a roll-up wood paneled garage door and a northwest-facing plane with a partially glazed wood door (Figure 19). The central portion of the façade contains two paired metal- sash wood-frame windows flanked by fixed lites, a single casement window, a wood door, and colored glass vertical ribbon windows (Figure 20 to Figure 24). The central portion of the facade also features a multi-level flat roof. Twelve fixed clerestory windows sit above the main overhanging 5 The southeast-facing plane features a stone base planter, whereas the stone base of the northwest façade does not contain a planter. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 11 - Page & Turnbull, Inc. eave; a third, smaller, wood-paneled volume sits above the clerestory windows. The right recessed portion of the southwest façade features a recessed vestibule containing a wood door with three punched lites (Figure 25). Figure 18: Rear southwest façade, view looking northeast. Figure 19: Roll-up wood paneled garage door and partially glazed wood door, view looking southeast. Figure 20: Two casement windows with outer fixed lites, view looking east. Figure 21: Single casement window, view looking northeast. Figure 22: Wood door, view looking northeast. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 12 - Page & Turnbull, Inc. Figure 23: Central portion of southwest façade, view looking northwest. Figure 24: Detail of stained glass vertical ribbon windows. Figure 25: Recessed vestibule at the far right (south) portion of the southwest façade, view looking northeast. Southeast Facade The southeast façade fronts Addison Avenue (Figure 26). The far left (south) section of the façade features a seven-lite wood-sash and wood-frame fixed window above a brick veneer base. A southwest-facing plane contains a tripartite window consisting of a center fixed lite flanked by two metal-sash wood-frame casement windows (Figure 27). The main portion of the southeast façade contains one five-part window consisting of a center fixed lite flanked by metal-sash casements and fixed lites (Figure 28). Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 13 - Page & Turnbull, Inc. Figure 26: Southeast façade, view looking northwest. Figure 27: Southeast façade with southwest- facing plane, view looking northeast. Figure 28: Southeast façade, view looking west. Landscape Features and Outbuildings The subject building at 980 Middlefield Road fills much of its square lot. The courtyard located at the building’s primary entrance is bounded by partial-height stone walls with built-in wood benches (Figure 29 to Figure 30). A tree bordered with hedges is located within the courtyard (Figure 31 to Figure 32). Narrow lawn areas located at the southeast and northeast facades contain stepping stones, a partial-height stone wall, and varied trees, shrubs, and hedges (Figure 33 to Figure 34, and Figure 28). An asphalt driveway from Middlefield Road runs along the northwest property line, which is bordered by a wood plank fence (Figure 35 to Figure 36). Rose bushes and topiaries are planted along the main portion of the rear southwest façade (Figure 23). The rear lots are addressed 637-45 Addison Avenue (APN 120-05-052 and APN 120-05-076) and contain a rear caretaker’s residence, a garage, a carport, parking spaces, and a turf lawn (Figure 37 to Figure 41). The one-story gabled caretaker residence, the flat-roofed garage, and the shed-roofed carport all feature overhanging wood eaves. The caretaker residence and garage are stucco clad and the carport is clad in vertical wood siding. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 14 - Page & Turnbull, Inc. Figure 29: Partial-height stone wall with wood bench, view looking north. Figure 30: Partial-height stone wall with wood bench, view looking east. Figure 31: Tree and hedge within courtyard, view looking southeast. Figure 32: Tree and hedge within courtyard, view looking east at Middlefield Road and Addison Avenue. Figure 33: Northeast lawn, view looking northwest. Figure 34: Partial-height stone wall, view looking southeast. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 15 - Page & Turnbull, Inc. Figure 35: Driveway at northwest façade, view looking southwest. Figure 36: Wood plank fence across from the northwest façade, view looking west. Figure 37: Turf lawn at southwest façade of subject building, view looking southwest. Figure 38: Carport at far end of turf lawn, view looking southwest. Figure 39: One-story caretaker residence at 637-45 Addison Avenue (built 1964). Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 16 - Page & Turnbull, Inc. Figure 40: Garage, view looking northwest. Figure 41: Wood plank fence and garage outbuilding, view looking north. SURROUNDING NEIGHBORHOOD The subject property is located at the junction of the University South and Community Center neighborhoods in Palo Alto. The remainder of the subject block is entirely residential, containing one large apartment complex called Webster Wood Apartments (Figure 42 to Figure 45). Constructed in 1978, Webster Wood Apartments consists of approximately two dozen one- and two-story multi- unit buildings. There are 56 units in total.6 There are multiple parking areas which include sheltered carports. The subject lot appears to contain two buildings within the Webster Wood Apartments complex that do not date to 1978: 940 Middlefield Road and 664 Channing Avenue (Figure 46 to Figure 47).7 Southeast of the subject property is Addison Elementary at 650 Addison Avenue, built in 1925 in the Spanish Colonial Revival style (Figure 48). The school takes up the full block bounded by Addison Avenue, Middlefield Road, Lincoln Avenue, and Webster Street. Northeast of the subject property are one story bungalows at 953 Middlefield Road (vernacular style, built 1922) and 703 Addison Avenue (Craftsman style, built 1922) (Figure 49 to Figure 50). None of the buildings described above are listed in the Palo Alto Historic Buildings Inventory. 6 “Webster Wood Apartments.” https://www.apartmentfinder.com/California/Palo-Alto- Apartments/Webster-Wood-Apartments. 7 These buildings are addressed as 940 Middlefield Road and 664 Channing Avenue on Google Maps. Based on Sanborn maps, 664 Channing Avenue dates to at least 1908, and 940 Middlefield Road dates to at least 9149. Sanborn maps indicate that 664 Channing Avenue was addressed 654 Channing Avenue in 1908, 654 -56 Channing Avenue in 1924, and 656 Channing Avenue in 1949. 940 Middlefield Road was addressed 936 Middlefield Road in 1949. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 17 - Page & Turnbull, Inc. Figure 42: Webster Wood Apartments. Figure 43: Webster Wood Apartments. Figure 44: Webster Wood Apartments. Source: Apartments.com Figure 45: Webster Wood Apartments. Source: Apartments.com Figure 46: 940 Middlefield Road. Figure 47: 664 Channing Avenue. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 18 - Page & Turnbull, Inc. Figure 48: Addison Elementary School (built 1925), shaded red. Red arrow pointing to 980 Middlefield Road across Addison Avenue. Source: Google Maps, 2018. Figure 49: 953 Middlefield Road (built 1922). Figure 50: 703 Addison Avenue (built 1922). Addison Avenue Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 19 - Page & Turnbull, Inc. IV. HISTORIC CONTEXT PALO ALTO HISTORY The earliest known inhabitants of the current-day location of Palo Alto area were the Ohlone people. The region was colonized by Gaspar de Portola in 1769 as part of the Spanish territory of Alta California. The Spanish and Mexican governments carved the area into large ranchos, and the land that later became Palo Alto belonged to several of these land grants, including Rancho Corte Madera, Rancho Pastoria de las Borregas, Rancho Rincon de San Francisquito, and Rancho Rinconada del Arroyo de San Francisquito.8 The Rancho Rinconada del Arroyo de San Francisquito encompassed more than 2,200 acres and covered all of the original Palo Alto town site. The northern boundary of the rancho was defined by San Francisquito Creek, while the southwestern boundary was located near El Camino Real, and the southeastern boundary lay parallel to the current-day Embarcadero Road.9 These land grants were honored in the cession of California to the United States during the 1840s, but parcels were subdivided and sold throughout the nineteenth century. The earliest township within the current boundaries of Palo Alto was called Mayfield. In 1882, railroad magnate and California politician, Leland Stanford, purchased 1,000 acres adjacent to Mayfield to add to his large estate in northwestern Santa Clara County. Stanford’s vast holdings became known as the Palo Alto Stock Farm. After Leland and Jane Stanford’s teenage son, Leland Jr., died in 1884, the couple chose to create a university in his honor. The Stanfords wanted a co- educational and non-denominational university, which contrasted with many contemporary institutions.10 On March 9, 1885, the university was founded through an endowment act by the California Assembly and Senate. Using their Stock Farm land, the Stanfords began constructing Leland Stanford Junior University, which ultimately opened in 1891. While the university was in its planning stages, Leland Stanford considered Mayfield an appropriate service town to support the school’s operations. However, the Stanfords believed that the university’s mission and community would be negatively affected by the presence of alcohol.11 With 13 popular saloons then operating in the town, Mayfield rejected the Stanfords’ request to go dry. Seeking an alternative, Stanford decided in 1894 to found the town of Palo Alto with help from his friend Timothy Hopkins of the Southern Pacific Railroad. Hopkins purchased and subdivided 740 acres of the former Rancho Rinconada del Arroyo de San Francisquito.12 Known as both the Hopkins Tract and University Park, the townsite was bounded by the San Francisquito Creek to the north, the railroad tracks and Stanford University campus to the southwest, and Embarcadero Road to the south (Figure 51). 8 “Palo Alto, California,” Wikipedia. http://en.wikipedia.org/wiki/Palo_Alto,_California#cite_note-12. 9 Ward Winslow and the Palo Alto Historical Association, Palo Alto: A Centennial History (Palo Alto Historical Association: Palo Alto, CA, 1993), 16-17. 10 “History of Stanford,” Stanford University. http://www.stanford.edu/about/history/. 11 “A Flash History of Palo Alto,” Quora. http://www.quora.com/How-is-the-historical-city-Mayfield-CA- related-to-Palo-Alto-CA. 12 “Comprehensive Plan,” City of Palo Alto, section L-3. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 20 - Page & Turnbull, Inc. Figure 51. Map of the original Palo Alto townsite. Source: Branner Earth Sciences Library and Map Collections, Stanford University. Following the Stanford’s wishes, Palo Alto was founded as a temperance town where no alcohol could be served. A new train stop was created along University Avenue, and the new town flourished around the young university. Palo Alto grew to be much more prosperous than its southeastern neighbor, Mayfield. Many people who were employed at Stanford University chose to move to Palo Alto, which was considered the safer and more desirable alternative of the two towns.13 The residents were mostly middle and working class, with a pocket of Stanford faculty members clustered in the neighborhood named Professorville. The development of a local streetcar in 1906 and the interurban railway to San Jose in 1910 facilitated access to jobs outside the city and to the university campus, encouraging more people to move to Palo Alto.14 Mayfield continued its decline, and its residents voted to become a “dry” town in 1904—although allowed the Mayfield Brewery to continue operation. However, the town was plagued by financial issues and could not compete with Palo Alto’s growth. In July 1925, Mayfield was officially annexed into the city of Palo Alto.15 Palo Alto was one of the first California cities to establish a City Planning Commission (CPC). In 1917, this advisory commission considered zoning matters in order to control new development and design within the city. The CPC’s purview included regulations on signage, public landscaping and lighting, and residential development. Palo Alto’s regulations on development have resulted in its relatively low density and consistent aesthetic. However, zoning controls in the early part of the twentieth century contributed to racial segregation in the city and the exclusion of certain groups from residential areas. Several neighborhoods were created with race-based covenants, which persisted until this practice was ruled unconstitutional in 1948.16 13 Matt Bowling, “The Meeting on the Corner: The Beginning of Mayfield’s End,” Palo Alto History.org, http://www.paloaltohistory.org/the-beginning-of-mayfields-end.php. 14 Dames & Moore, “Final Survey Report – Palo Alto Historical Survey Update: August 1997-August 2000,” prepared for the City of Palo Alto Planning Division, February 2001, 1 -4. 15 “A Flash History of Palo Alto,” Quora. 16 Dames & Moore, “Final Survey Report,” 1-7. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 21 - Page & Turnbull, Inc. The depression of the 1930s impacted the design, construction, and financing of buildings across the nation. In many areas, there was little to no building in the 1930s; however, this was not the case in Palo Alto. While Palo Alto did suffer through the Great Depression, new development did not come to a halt. The United States government assisted in providing housing through several programs in the 1930s. Architectural journals and newspapers showed a substantial amount of construction between 1931 and 1944. 800 buildings (including the subject building) were built between these years, most before 1941.17 The United States’ involvement in World War II brought an influx of military personnel and their families to the San Francisco Peninsula. When the war ended, Palo Alto saw rapid growth. Many families who had been stationed on the Peninsula by the military or who worked in associated industries chose to stay. Palo Alto’s population more than doubled from 16,774 in 1940 to 33,753 in 1953.18 Stanford University was also a steady attraction for residents and development in the city. The city greatly expanded in the late 1940s and 1950s, as new parcels were annexed to house new offices and light industrial uses (Figure 52). As a result of this development, the city evolved somewhat beyond its “college town” reputation.19 Palo Alto annexed a vast area of mostly undeveloped land west of the Foothill Expressway (Interstate 280) between 1959 and 1968. This area has remained protected open space. Small annexations continued into the 1970s. Palo Alto remains closely tied to Stanford University, its largest employer. The technology industry currently dominates other sectors of business, as is the case with most cities within Silicon Valley. Figure 52. The expansion of Palo Alto from 1894 to 1952. Source: Branner Earth Sciences Library and Map Collections, Stanford University. 17 Dames & Moore Final Survey Report Update pg. 1-9. 18 “Depression, War, and the Population Boom,” Palo Alto Medical Foundation- Sutter Health, accessed March 24, 2016, http://www.pamf.org/about/pamfhistory/depression.html. 19 “Comprehensive Plan,” section L-4. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 22 - Page & Turnbull, Inc. ROLLER HAPGOOD & TINNEY Prior to its closure in 2013, Roller Hapgood & Tinney was one of the oldest family-owned and operated funeral homes on the Peninsula and was the oldest in Palo Alto. The business was established in 1899 by Josiah Roller, a San Francisco-based retired cabinet maker who was often called upon to make coffins. He began working for the Nathaniel Gray Company, one of the largest undertaker establishments in San Francisco. Although promotional material produced throughout the twentieth century claims that Roller Hapgood & Tinney was established in 1899, it appears as though Josiah Roller did not open his own establishment in Palo Alto until 1900.20 The Palo Alto Times reported in January 1900 that Roller, a “well known undertaker,” would open undertaking parlors in Palo Alto and would bring his family to Palo Alto to reside.21 There appears to have been some resistance to Roller opening an undertaking parlor in a then-residential portion of Palo Alto. A petition was circulated, and many opposed Roller’s plan out of fear that “such an establishment would injure the value of their property.”22 Despite the opposition, by August 1900, Roller, “Undertaker and Embalmer,” had established an office/residence at 421 Margaret Street, and had opened a mortuary chapel and warerooms at 420 Cowper Street.23 Josiah’s funeral home business quickly grew. Some accounts report that his son, Arthur Roller, took over the business in 1906 or 1910, but most report that the transfer occurred in 1912, when Josiah fully retired. In 1913, the Roller Undertaking Company secured a Pierce Arrow limousine, “the first fully equipped automobile hearse on the coast” (Figure 53).24 Arthur appears to have then partnered with Frank A. Hapgood by 1913, when the business was re-named Roller & Hapgood.25 Even with the limousine, Roller & Hapgood continued to offer regular horse-drawn service for those uninterested in motorized transport. Figure 53: New and modern ambulance service (ca.1913). Source: Palo Alto Historical Association. In February 1924, Roller & Hapgood announced plans to construct a funeral home at the southwest corner of Cowper Street and University Avenue.26 The new building was completed by August 1924, at a cost of $35,000. As reported in the Palo Alto Times, “the most attractive feature of the new funeral home is the chapel, with a seating capacity of over 100, where services can be held without removal to a church. The chapel is finished along simple Gothic lines, with stained glass windows 20 Palo Alto Daily News (June 9, 1905). 21 Palo Alto Times (January 23, 1900). 22 Palo Alto Live Oak (February 12, 1900). 23 Palo Alto Times (August 10, 1900). 24 Palo Alto Times (January 11, 1913). 25 “New of 25 Years Ago (from files of the Times)” Palo Alto Times (July 27, 1912). 26 “$20,000 Mortuary to be Built by Local Firm,” Palo Alto Times (February 22, 1924). Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 23 - Page & Turnbull, Inc. and the reverent atmosphere of a church auditorium. A choir loft at the rear provides for the musicians. In addition to the reception rooms, which are attractively furnished in subdued taupe, and the chapel, there are the office and workroom on the main floor, a basement display room for caskets and an apartment upstairs for the use of a caretaker.”27 In 1946, Arthur Roller’s son Willis, and Frank Hapgood’s son Robert, became partners. In February 1949, Tom Kearney, former chief of police in Menlo Park, announced his association with Roller & Hapgood- his role at the company is unknown, and the firm name remained unchanged.28 Following Kearney joining the company, Roller & Hapgood purchased a Redwood City funeral home called Franklin & Crowe in late February 1949 and changed the name to Roller, Hapgood & Lorentzen. Articles of incorporation for Roller Hapgood & Lorentzen, Inc., were filed in Sacramento to engage in the mortuary business. Directors of the new company were Arthur Roller and Frank A. Hapgood of 481 University Avenue, Palo Alto, and Laura Lorentzen of 926 Middlefield Road, Redwood City.29 The mortuary at 481 University Avenue in Palo Alto remained as Roller & Hapgood. The firm Roller, Hapgood & Lorentzen built the White Oaks Chapel in San Carlos in 1949 and the Redwood Chapel in Redwood City, in 1951; Willis Roller (son of Arthur Roller) and Frank Hapgood sold both of these funeral homes in September 1965.30 In 1950, after having occupied the building at 481 University Avenue since 1924, Roller & Hapgood began planning a new, larger mortuary establishment at 980 Middlefield Road (see section to follow under “Site History”).31 In 1960, Arthur Roller’s other son, Robert, and Robert F. Hapgood’s son, Walter, also became partners. In 1970, Roller & Hapgood took on two more partners, Keneth C. Welch and Ernest R. Duranti, who had been employees of the firm since 1953.32 In 1971, a lawsuit asking $375,000 in damages was filed against Roller & Hapgood regarding a payment dispute.33 Also in 1971, a gravediggers strike occurred, closing all but two cemeteries in San Mateo County and requiring funeral homes like Roller & Hapgood to store bodies.34 Embalmers also went on strike in 1971 for a total of 88 days.35 In September 1971, Roller & Hapgood acquired their oldest competitor, Tinney & Sons Funeral Chapel.36 The new combined business was renamed Roller Hapgood & Tinney. The previous Tinney chapel at 555 College Avenue was closed (Figure 54). At the time, Roller & Hapgood was owned by Robert Roller, Ferrell Hapgood (Robert Hapgood’s widow), Kenneth Welch, and Ernest Duranti. The Tinney Funeral Home had been started in 1910 by George W. and May E. Tinney. The firm had been operated by their son, Ray Tinney, until 1947, when his widow, Edith, and their son, Raymond, took over. As reported in the Palo Alto Times, “declining patronage and a trend towards simple funerals had left Tinney a less-than-lucrative operation.”37 A nationwide trend saw many funeral homes merging because they could no longer afford to operate independently. 27 “New Funeral Home is Completed Here,” Palo Alto Times (August 5, 1924). 28 “Ex-MP cop joins Roller & Hapgood,” Palo Alto Times (February 3, 1949). 29 “Articles Are Filed in State Capital for New Mortuary,” Palo Alto Times (February 23, 1949). 30 “Funeral Homes sold by area undertakers,” Palo Alto Times (September 2, 1965). 31 “Roller & Hapgood planning mortuary on Middlefield Road,” Palo Alto Times (November 28, 1950). 32 “Roller & Hapgood takes 2 ‘outsiders’ as partners.” Palo Alto Times (September 9, 1970). 33 “$375,000 Palo Alto Suit Filed Over Funeral Costs,” Palo Alto Times (February 26, 1971). 34 “Plenty of room for body storage during strike, morticians say,” Palo Alto Times (June 26, 1971). A second strike occurred later, in 1985. 35 “Embalmers’ Strike Settled,” San Francisco Chronicle (July 15, 1971). 36 “Roller & Hapgood acquires a competitor,” Palo Alto Times (September 8, 1976). Two other remaining local competitors were Bishop-Bronzini-Girouard, 744 San Antonio Road, and Palm O’Dell, 935 Industrial Avenue. 37 Ibid. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 24 - Page & Turnbull, Inc. By 1999, Deborah Hapgood, fourth generation of the Hapgood family and great granddaughter of Frank Hapgood, headed the company.38 At the time, the mortuary was still accommodating more than 600 funerals a year and remained the largest funeral home on the Peninsula.39 40 On November 1, 2013, Roller Hapgood & Tinney closed after 114 years of business. At time of Roller Hapgood & Tinney’s closure, only one remaining funeral home operated in Palo Alto, at Alta Mesa Cemetery (est. 2010, located at 695 Arastradero Road). Earlier local competitors Bishop Jordan/Bishop-Bronzini-Girouard/Palo Alto Chapel (constructed in 1961, located at 744 San Antonio Road) and Palm O’Dell (constructed in 1960, located at 935 Industrial Avenue) had already closed (Figure 55 to Figure 56).41 According to Ward Winslow, author of Palo Alto: A Centennial History, the shuttering of Palo Alto’s third-oldest business left only three local businesses more than 100 years old: Thoits Insurance (1890); Dahl Plumbing (1897); and Mills the Florist (1903). Figure 54: 555 College Avenue (built 1958). Source: Palo Alto Historical Association (no date). Figure 55: 744 San Antonio Road, Palo Alto (built 1961). Source: 744-750 San Antonio Road Environmental Impact Report (March 2017). Figure 56: 935 Industrial Avenue, Palo Alto (built 1960). Source: Google Street View, 2017. 38 “100 Years Caring For Yours- the Funeral Business in Palo Alto,” PAHA (October 3, 1999). 39 Emily Richmond, “Changing views about death over funeral homes’ 100 years,” Palo Alto Daily News (October 1, 1999). 40 Melinda Sacks, “Death in the family,” Palo Alto Weekly (November 6, 1991) 21. 41 744 San Antonio Road is slated for demolition as part of a proposed hotel development. 935 Industrial Avenue is vacant. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 25 - Page & Turnbull, Inc. SITE HISTORY: 980 MIDDLEFIELD ROAD AND 637-45 ADDISON AVENUE The subject property was first depicted on the 1901 Sanborn Fire Insurance Map, when the block was only minimally developed with a few single-family homes (Figure 57). By 1904, additional homes had been developed at the southern half of the block, and by 1908, the northern half of the block began to be developed, as well (Figure 58 and Figure 59). The 1924 and 1949 Sanborn maps reflect the full development of the subject block, with the exception of the subject site itself (Figure 60 and Figure 61). Figure 57: 1901 Sanborn Map depicting the subject block; approximate location of future subject property shaded. Source: Digital Sanborn Maps, San Francisco Public Library. Edited by Page & Turnbull. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 26 - Page & Turnbull, Inc. Figure 58: 1904 Sanborn Map depicting the subject block; approximate location of future subject property shaded. Source: Digital Sanborn Maps, San Francisco Public Library. Edited by Page & Turnbull. Figure 59: 1908 Sanborn Map depicting the subject block; approximate location of future subject property shaded. Source: Digital Sanborn Maps, San Francisco Public Library. Edited by Page & Turnbull. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 27 - Page & Turnbull, Inc. Figure 60: 1924 Sanborn Map depicting the subject block; approximate location of future subject property shaded. Source: Digital Sanborn Maps, San Francisco Public Library. Edited by Page & Turnbull. Figure 61: December 1949 Sanborn Map depicting the subject block; approximate location of future subject property shaded. Source: Digital Sanborn Maps, San Francisco Public Library. Edited by Page & Turnbull. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 28 - Page & Turnbull, Inc. In 1950, a permit for a $100,000 building was issued for the new Roller & Hapgood mortuary, designed by local architect Leslie I. Nichols to be more than double the size of the firm’s previous building at 481 University Avenue.42 In February 1951, construction of the subject building at 980 Middlefield Road commenced at the previously undeveloped corner lot at Middlefield Road and Addison Avenue. An architectural drawing published in the Palo Alto Times just prior to the building’s grand opening depicts the building with the same footprint it has today; a rear garage (since expanded) is also depicted (Figure 62). The building officially opened to the public on December 1, 1951. An advertisement for the mortuary read: “We have chosen this location away from the congested downtown area, in quiet surroundings, yet readily accessible, as it is on a main thoroughfare…On entering the building, one is greeted with a quiet garden-like atmosphere created by an indoor patio. The chapel carries out the same feeling. There is also a smaller drawing-room chapel for families desiring private services. Every effort has been made in planning to provide for the comfort and convenience of the families we serve. The entire building has the most modern facilities, is air-conditioned and spacious. Immediately adjoining is a fifty-car parking lot.”43 As of late December 1951, the landscaping and paving of a parking lot were not yet complete, but they appear to have been completed shortly thereafter (Figure 63).44 The new building was constructed to accommodate as many as 300 funeral guests. The large chapel, with a vaulted ceiling and exposed beams, sat 180 guests. The stone accent wall of the chapel was sourced from a calcium carbonate quarry near Santa Cruz.45 Figure 62: Drawing of subject building upon its grand opening, view from Middlefield Road and Addison Avenue. Source: Daily Palo Alto Times (November 29, 1951). 42 “Roller & Hapgood planning mortuary on Middlefield Road,” Palo Alto Times (November 28, 1950). 43 “An Addition of Beauty and Dignity,” Daily Palo Alto Times (November 29, 1951). 44 “New Mortuary,” San Jose Mercury News (December 27, 1951). 45 “Roller Hapgood Tinney,” http://www.shoppaloalto.com/rollerhapgoodtinney/?listing.action=about Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 29 - Page & Turnbull, Inc. Figure 63: Subject building, recently after opening, view from Middlefield Road and Addison Avenue looking west. Source: San Jose Mercury News (December 27, 1951). In 1964, a rear caretaker’s residence addressed 637 Addison Avenue was constructed at the far west corner of the property. A three-stall carport at the southwest property of 637 Addison Avenue was constructed at an unknown date. A second garage was constructed next to the 1951 garage; the two garages were joined at an unknown date after 1976. In 1976, a residential building at 645 Addison Avenue was demolished to make way for additional parking spaces to the southwest of the mortuary building. The Palo Alto Architectural Review Board approved the demolition on November 2, 1976. The request read: “Remove building, add 8 parking spaces, fence and landscaping…the dwelling to be removed is uninhabitable and the changes will be an improvement to the site.”46 By 1980, the area southwest of the subject building (currently a turf field) appears to have been fully paved. The subject building itself at 980 Middlefield Road appears to have remained unaltered. An article published in 1981 in the Peninsula Times Tribune describes the building interior with “the wide entrance hallway framed on one side by an expanse of glass, affording a view of a school across the street, where life is very much in progress.”47 Advertisements and published photographs featuring the subject building reflect no apparent exterior additions or alterations (Figure 64 to Figure 65). Roller Hapgood & Tinney closed in 2010, and in 2013, the subject property was sold to Marissa Mayer.48 46 Palo Alto Planning Department Files (NA (93-ARB-19)). 47 “Helping the Living to Carry On,” Peninsula Times Tribune (May 11, 1981). 48 “Yahoo CEO buys funeral home,” Palo Alto Daily Post (October 29, 2013). Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 30 - Page & Turnbull, Inc. Figure 64: Advertisement for Roller Hapgood & Tinney. Source: Peninsula Times Tribune (February 28, 1993). Figure 65: Subject building in 1991. Source: Palo Alto Weekly (November 6, 1991). Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 31 - Page & Turnbull, Inc. CONSTRUCTION CHRONOLOGY The following table and narrative provides a timeline of construction activity at 980 Middlefield Road/637-45 Addison Avenue based on building permit applications filed with the City of Palo Alto Building Inspection Division, records provided by the Palo Alto Planning Department, and historic newspaper articles.49 Research did not uncover any original building permits. The only known exterior alteration of the mortuary building at 980 Middlefield Road is a reroofing project in 2011. Physical observation did not indicate unpermitted alterations. Date Permit # Scope of Work 7/22/1963 NA (76-ZC-14) Change of zoning from R-3-P, R-3 and R-2 to P-C 7/16/1976 NA Building removal (645 Addison Avenue) and screen fence for Roller & Hapgood. Plans by John W. Cole, Architect. 1/29/1993 NA (93-ARB-19) Architectural Review Board approval of new fence at rear cottage (caretaker residence) 8//12/2011 11-2108 Replace redwood shake roof with black composition shingle roof MIDCENTURY MODERN STYLE The following information is excerpted from the City of San Francisco’s San Francisco Modern Architecture and Landscape Design, 1935-1970, Historic Context Statement (2011). The information below is not San Francisco-specific, but rather, describes general characteristics of the Mid-Century Modern style (1945-1965) which can be applied to buildings in Palo Alto. Midcentury Modern is a term used to describe an expressive, often exuberant style that emerged in the decades following World War II. Influenced by the International Style and the Second Bay Tradition, Midcentury Modern was a casual, more organic and expressive style, and was readily applied to a wide range of property types. Custom‐designed houses, residential tract developments, churches, and commercial buildings incorporated Midcentury Modern design. Extant Midcentury Modern storefronts reflect the post‐war innovations and changes in American retailing in the post‐ war era. Midcentury Modern is the most common Modern style built in the San Francisco Bay Area from 1945‐1965. The style incorporates an array of design elements including cantilevered overhangs, projecting eaves, canted windows, projecting boxes that enframe the upper stories, stucco siding, the use of bright or contrasting colors, spandrel glass, large expanses of windows, flat or shed roof forms, stacked brick veneer, asymmetrical facades, and occasionally vertical wood siding. Historic references or revival influences are notably absent from the Midcentury Modern style. The term Midcentury Modern was generated by the public rather than scholars.50 General character defining features: 49 Note that permits were not collected at Palo Alto Building Inspection for 637 -45 Addison Avenue. However, the Palo Alto Planning Department did provide relevant documents on file for 637 -45 Addison Avenue. 50 The Riverside Modernism Context Statement provides a similar definition for the sub‐style it refers to as “Mid‐Century” Modern design. Recent Modern Age context statements developed by Pasadena, San Diego, and Fresno, California, have defined region‐specific versions of Midcentury Modern design. Fresno and San Diego deemed their regional versions the Contemporary Style, while Pasadena defined its Midcentury Modern style as the postwar iteration of the International Style. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 32 - Page & Turnbull, Inc. ▪ Projecting eaves and exposed rafters ▪ Cantilevered overhangs ▪ Flat, shed or low‐pitched gable roof forms ▪ Vaulted roofs and overhangs ▪ Articulated primary facades ▪ Stucco, wood (often vertical), or corrugated siding ▪ Stacked Roman brick or stone often used as accent material ▪ Expressed post and beam construction ▪ Strong right angles and simple cubic forms ▪ Projecting vertical elements ▪ Large steel‐ or wood‐framed windows ▪ Canted windows ▪ Painted finish is often stained, earth tone, or brightly colored ▪ Projecting boxes that enframe the upper stories ▪ Atrium or courtyard entryways ▪ Overhanging trellises, sunshades, and pergolas Character‐defining features specific to commercial and institutional buildings: ▪ Spandrel glass ▪ Stacked roman brick veneer ▪ Integrated planters ▪ Angled or deeply recessed vestibules ▪ Terrazzo paving ▪ Projecting vertical elements ▪ Metal awnings or canopies (zigzag, corrugated metal, or sheet metal) ▪ Small geometric tiles set in geometric patterns ▪ Slightly projecting vertical mullions ▪ Jalousie windows, particularly at the transom ▪ Base mounted signage or “advertising front” lettering ▪ Textile block screens or metal sheathing.51 980 Middlefield Road features numerous character-defining features of the Midcentury Modern style listed above, including: projecting eaves, cantilevered overhangs, flat roof forms, a vaulted roof form (chapel interior, not pictured in this report), an articulated primary façade, wood siding, brick veneer, stone used as accent material, strong right angles and simple cubic forms, projecting vertical elements, large windows, painted stained finishes, atrium (interior, though not pictured in this report), courtyard, overhanging pergola, integrated planter, and deeply recessed vestibules. ARCHITECT LESLIE I. NICHOLS (1894- 1969) Leslie Nichols, a Chicago native, earned his bachelor’s and master’s degrees in Architecture at Cornell University. Upon graduating in 1920, Nichols began practicing with the firm Gordon and Kaelber in Rochester, New York. While at Gordon and Kaelber, Nichols studied classical Beaux Arts traditions and modern trends in hospital and apartment building construction. In 1924, Nichols formed a New York City-based partnership with his father-in-law, Arthur Gibb. Together, they 51 Mary Brown, San Francisco Planning Department, San Francisco Modern Architecture and Landscape Design, 1935- 1970, Historic Context Statement, Final Draft (12 January 2011) 189. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 33 - Page & Turnbull, Inc. contributed to the design of the Holland Tunnel. While working in New York, Nichols won an architectural competition to design a tuberculosis hospital. Nichols moved to Palo Alto in 1932 and opened an architectural office the following year. He moved to Atherton in the late 1930s and resided at 369 Atherton Avenue. He worked throughout the Midpeninsula region and primarily designed residences, churches, and commercial buildings. He built over 36 houses, several of which are located on Webster Street, Hamilton Avenue, and Forest Avenue in Palo Alto. His residences ranged in style from French Eclectic/Italian Renaissance Revival (419 Maple Street), to Colonial Revival (39 Crescent Drive). In the early 1940s, Nichols “undertook a program of special work with the U.S. [A]rmy engineers…doing designing and postwar planning for a construction industry. In that work he spent considerable time in the development of kitchens and planned storage.”52 After World War II, Nichols successfully made the transition to modernism. His best-known work of the period is the 1953 Palo Alto City Hall (now the Palo Alto Art Center) across the street from Rinconada Park, which was based on the design of Modern Ranch style houses. When designing the Palo Alto City Hall building at 1313 Newell Road, Nichols intended for the redwood and brick exterior and shake roof to harmonize with the surrounding residential neighborhood. His plans provided for off-street parking and buried utility lines. Other amenities included a lunchroom, council chambers with seating for 132, and a drive-in utility payment window.53 Interestingly, Nichols’ designs between 1955 and 1969 often included a touch of Japanese influence. This can be seen at the subject building (use of crane motif at the interior, use of wood screen at exterior), and at Nichols’ own Atherton home. Nichols appears to have worked both independently and with partners. In 1946, he partnered with contractor Ross White and formed the architect-contractor firm of Nichols-White, Inc. The pair constructed the commercial building at 145 Addison Avenue in 1946.54 Ca. 1955, he was Principal of Leslie I. Nichols, Architect.55 Nichols served on the Atherton Planning Commission until 1968 and was a member of the San Mateo County Planning Commission for 25 years, until 1964. He was a fellow of the American Institute of Architects and won several architectural awards prior to his retirement in 1967. Nichols was referenced in the 2002 City Council report (CMR 272:02) for the Art Center and Rinconada Library expansion as an architect of demonstrated importance.56 The Palo Alto Historical Association regards Nichols as a widely-acclaimed architect. He is also discussed as an architect of note in the Final Survey Report for the Palo Alto Historical Survey Update by Michael Corbett and Denise Bradley of Dames & Moore (February 2001).57 In addition to his professional accomplishments, Nichols was a founder of the Palo Alto Club, a charter member of the Fellowship Forum of Menlo Park, a member of the Palo Alto Rotary Club, a member and president of the American Fuchsia Society and American Badminton Club, an active member of Palo Alto Camera Club, and a member of the Christian Science Church.58 Nichols died in 1967. 52 “Nichols, Ross, will discuss home planning,” Palo Alto Times (January 26, 1945). 53 “The three incarnations of 1313 Newell Road,” The Tall Tree (October 2016) 3. 54 “Architect firm is putting up its own building,” Palo Alto Times (January 4, 1946). 55 “Leslie I. Nichols,” PCAD. http://pcad.lib.washington.edu/person/5922/ 56 http://www.cityofpaloalto.org/civicax/filebank/documents/5031 57 https://www.cityofpaloalto.org/civicax/filebank/documents/61623 58 “Leslie Nichols, noted architect in Midpeninsula, succumbs at 75,” Palo Alto Times (December 17, 1969). Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 34 - Page & Turnbull, Inc. Leslie I. Nichols’ known commissions include, but are not limited to: Residential 39 Crescent Drive, Palo Alto (1925-27) 419 Maple, Palo Alto (1928-29)59 1407 Hamilton Avenue, Palo Alto (1933) 553 Center Street, Palo Alto (1934) 1045 Alma Street, Palo Alto (1934) 1230 Hamilton Avenue, Palo Alto (1934) 215 Lowell Avenue, Palo Alto (1935) 470 Santa Rita Avenue, Palo Alto (1935) 570 Chaucer Street, Palo Alto (1934-35) 123 Island Drive, Palo Alto (1935) 2150 Cowper Street, Palo Alto (1936) 2164 Webster Street, Palo Alto (1936) 2020 Webster Street, Palo Alto (1936) 1436 Emerson Street, Palo Alto (1936) 1448 Emerson Street, Palo Alto (1936) 1452 Emerson Street, Palo Alto (1936) 1464 Emerson Street, Palo Alto 91936) 2440 Bryant Street, Palo Alto (1936) 2044 Webster Street, Palo Alto (1936) 2430 South Court, Palo Alto (1936) 2420 Bryant Street, Palo Alto (1936) 2176 Webster Street, Palo Alto (1936) 450 Nevada Street, Palo Alto (1936) 436 Santa Rita Avenue, Palo Alto (1936) 1664 Emerson Street, Palo Alto (1937) 1910 Webster Street, Palo Alto (1937) 450 Santa Rita Avenue, Palo Alto (1937) 220 Churchill Avenue, Palo Alto (1940, demolished) 1331 Hamilton Avenue, Palo Alto (1940, demolished) 1729 Cowper Street, Palo Alto (1941) 532 Emerson Street, Palo Alto (1941) 215 Lowell Avenue, Palo Alto (1945)60 1115 Forest Avenue, Palo Alto (1945, demolished) 511 Alma Street, Palo Alto (1946) 545 Bryant Street, Palo Alto (1946) 1431 Waverly Street, Palo Alto (1953)61 369 Atherton Avenue, Atherton (unknown, demolished) Commercial 240 University Avenue, Palo Alto (1936) 616 University Avenue, Palo Alto (1938) 541 Bryant Street, Palo Alto (1946) 59 Nichols designed 419 Maple remotely, from New York City. Birge Clark was the on-site architect. The home was commissioned by Nichols’ Palo Alto-based parents. 60 Garage and laundry additions only. 61 “Gamble, Edwin and Elizabeth L. House,” PCAD. http://pcad.lib.washington.edu/building/16676/. Note that 1431 Waverly Street, known as the Gamble House, was constructed ca.1908 by Charles Kaiser Sumner and Henry Mather Greene. Nichols is responsible only for a later porch alteration in 1953. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 35 - Page & Turnbull, Inc. 145 Addison Avenue, Palo Alto (1946) 330-44 California Avenue, Palo Alto (1946) 643 Emerson Street, Palo Alto (1947) J.C. Penney’s (now, Walgreens) at 300-312 University Avenue, Palo Alto (1948) Roller and Hapgood Mortuary at 980 Middlefield Road (1951)62 Ecclesiastic First Presbyterian Church, Menlo Park (1950) First Presbyterian Church at 1140 Cowper Street, Palo Alto (1955-57) Christian Science Church at 401 University Avenue, Los Altos (unknown) Congregational Church (now, Peach United Church) at 900 High Street, Santa Cruz (unknown) Institutional Palo Alto City Hall (now, Palo Alto Art Center) at 1313 Newell Road (1953) Fire Station 6 at 700 Oak Grove, Menlo Park (1953, demolished) Fire Station 1 at 300 Middlefield Road, Menlo Park (1955) Fire Station 2 at 2290 University Avenue, East Palo Alto (1956) Recreational 1899 Park Boulevard, Palo Alto (1952) Lawn Bowling Club House, Palo Alto (1954)63 62 Note the mortuary was not associated with any particular religion, and operated as a business . 63 Peter Danner, “A Timeline of the Palo Alto Lawn Bowls Club,” https://www.palbc.org/history/. Nichols’ design has since been substantially added on to. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 36 - Page & Turnbull, Inc. V. EVALUATION CALIFORNIA REGISTER OF HISTORICAL RESOURCES The California Register of Historical Resources (California Register) is an inventory of significant architectural, archaeological, and historical resources in the State of California. Resources can be listed in the California Register through a number of methods. State Historical Landmarks and National Register-listed properties are automatically listed in the California Register. Properties can also be nominated to the California Register by local governments, private organizations, or citizens. The California Register of Historical Resources follows nearly identical guidelines to those used by the National Register, but identifies the Criteria for Evaluation numerically. In order for a property to be eligible for listing in the California Register, it must be found significant under one or more of the following criteria. ▪ Criterion 1 (Events): Resources that are associated with events that have made a significant contribution to the broad patterns of local or regional history, or the cultural heritage of California or the United States. ▪ Criterion 2 (Persons): Resources that are associated with the lives of persons important to local, California, or national history. ▪ Criterion 3 (Architecture): Resources that embody the distinctive characteristics of a type, period, region, or method of construction, or represent the work of a master, or possess high artistic values. ▪ Criterion 4 (Information Potential): Resources or sites that have yielded or have the potential to yield information important to the prehistory or history of the local area, California, or the nation. The following section examines the eligibility of 980 Middlefield Road/637-45 Addison Avenue for listing in the California Register. Criterion 1 (Events) 980 Middlefield Road/637-45 Addison Avenue does not appear to be individually significant under Criterion 1 in association with historical events important to the history of Palo Alto, the state of California, or the United States. The primary mortuary building at 980 Middlefield Road was constructed in 1951, many decades after Palo Alto’s incorporation in 1894. The subject property was the last portion of the subject block to be developed. Although Roller Hapgood was a very prominent and long-standing local business in Palo Alto, the subject property itself does not fully represent the company’s legacy. Roller Hapgood (initially Roller Undertaking Company and later, Roller Hapgood & Tinney) operated out of at least three previous sites before its relocation to 980 Middlefield Road. Further, the firm was not the only business of its kind in Palo Alto; competitors Bishop Jordan/Bishop-Bronzini-Girouard, Palm O’Dell, and Alta Mesa offered similar services to the Palo Alto community. As a result, the subject property at 980 Middlefield Road/637-45 Addison Avenue does not appear individually significant under Criterion 1. Criterion 2 (Persons) The subject property at 980 Middlefield Road/637-45 Addison Avenue was owned and operated by four generations of the Roller and Hapgood families, as well as multiple members of the Tinney family. The property did not experience turnover in ownership prior until 2013, when it was purchased by Marissa Mayer. Although the generational legacy of the Roller Hapgood, and Tinney families is notable, no individuals stand out as having made important contributions to local, state, or Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 37 - Page & Turnbull, Inc. national history such that the subject property would be eligible for individual significance under Criterion 2. As a result, the subject property at 980 Middlefield Road/637-45 Addison Avenue does not appear individually significant under Criterion 2. Criterion 3 (Architecture/Design) 980 Middlefield Road was constructed in 1951 by prominent local architect Leslie I. Nichols in the Midcentury Modern style. Leslie Nichols, best known for designing the Palo Alto City Hall at 1313 Newell Road (now the Palo Alto Art Center), completed dozens of commissions throughout the San Francisco Peninsula. He is an accomplished architect of local importance. 980 Middlefield Road features many characteristic Midcentury Modern elements, including projecting eaves, cantilevered overhangs, flat roof forms, a vaulted roof form, an articulated primary façade, wood siding, brick veneer, stone used as accent material, strong right angles and simple cubic forms, projecting vertical elements, large windows, painted stained finishes, atrium, courtyard, overhanging pergola, integrated planter, and deeply recessed vestibules. The subject building does not appear to have undergone exterior alterations. As a property type, the subject building exhibits key characteristics of midcentury mortuary buildings, including an indoor-outdoor connection and interaction with natural environment (courtyard, atrium, and lawns), straightforward use of materials, and exaggerated roof form. A rear garage at 645 Addison Avenue was constructed in 1951 and was later attached to a second garage, constructed at an unknown date prior to 1976. A rear caretaker’s residence at 637 Addison Avenue was constructed in 1964. A three-stall carport at 637 Addison Avenue was constructed at an unknown date prior to 1976. The architect/builder of the rear caretaker’s residence and garages is unknown. These outbuildings and carport structure do not appear to contribute to the property’s significance. 980 Middlefield Road is significant for its distinctive Midcentury Modern design, as a representative midcentury property type, and as a work of architect Leslie Nichols. Thus, the subject building at 980 Middlefield Road does appear to be eligible for individual listing in the California Register under Criterion 3. Criterion 4 (Information Potential) The “potential to yield information important to the prehistory or history of California” typically relates to archeological resources, rather than built resources. Evaluation of 980 Middlefield Road/637-45 Addison Avenue under Criterion 4 (Information Potential) is beyond the scope of this report. This evaluation does not address whether the building would qualify as a contributor to a potential historic district. A cursory inspection of the surrounding area does not reveal a high concentration of buildings that would warrant further study. CHARACTER-DEFINING FEATURES For a property to be eligible for national or state designation under one of the significance criteria, the essential physical elements (or character-defining features) that enable the property to convey its historic identity must be evident. To be eligible, a property must clearly contain enough of those characteristics, and these features must also retain a sufficient degree of integrity. Characteristics can be expressed in terms such as form, proportion, structure, plan, style, or materials. As an individually significant historic resource under Criterion 3 with a period of significance of 1951 (date of construction), the character-defining features of 980 Middlefield Road include: Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 38 - Page & Turnbull, Inc. • Form and massing • Stucco cladding, wood siding, brick veneer, and stone exterior • Gable and flat roof forms • Sawtooth chapel wall • Fenestration o Wood doors throughout (some with punched lites) o Geometric wood screens at primary facade o Fixed sawtooth windows at primary facade o Large fixed windows at southeast façade o Fixed ribbon windows and clerestory windows at southwest façade o Fixed/casement paired windows throughout • Courtyard at primary entrance with partial-height stone walls and built-in benches • All Midcentury Modern elements, including: projecting eaves, cantilevered overhangs, flat roof forms, a vaulted roof form, an articulated primary façade, wood siding, brick veneer, stone used as accent material, strong right angles and simple cubic forms, projecting vertical elements, large windows, painted stained finishes, atrium, courtyard, overhanging pergola, integrated planter, and deeply recessed vestibules • Landscape Features o Lawns at northeast and southeast, facades o Driveway at northwest facade INTEGRITY In order to qualify for listing in any local, state, or national historic register, a property or landscape must possess significance under at least one evaluative criterion as described above and retain integrity. Integrity is defined by the California Office of Historic Preservation as “the authenticity of an historical resource’s physical identity by the survival of certain characteristics that existing during the resource’s period of significance,” or more simply defined as “the ability of a property to convey its significance.”64 In order to evaluate whether 980 Middlefield Road retains sufficient integrity to convey its historic significance, Page & Turnbull used established integrity standards outlined by the National Register Bulletin: How to Apply the National Register Criteria for Evaluation. Seven variables, or aspects, that define integrity are used to evaluate a resource’s integrity—location, design, setting, materials, workmanship, feeling and association. A property must stand up under most or all of these aspects in order to retain overall integrity. If a property does not retain integrity, it can no longer convey its significance and is therefore not eligible for listing in local, state, or national registers. The seven aspects that define integrity are defined as follows: Location is the place where the historic property was constructed. Design is the combination of elements that create the form, plans, space, structure and style of the property. Setting addresses the physical environment of the historic property inclusive of the landscape and spatial relationships of the building(s). 64 California Office of Historic Preservation, Technical Assistance Series No. 7: How to Nominate a Resource to the California Register of Historical Resources (Sacramento: California Office of State Publishing, 4 September 2001) 11. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 39 - Page & Turnbull, Inc. Materials refer to the physical elements that were combined or deposited during a particular period of time and in a particular pattern of configuration to form the historic property. Workmanship is the physical evidence of the crafts of a particular culture or people during any given period in history. Feeling is the property’s expression of the aesthetic or historic sense of a particular period of time. Association is the direct link between an important historic event or person and a historic property. Location: 980 Middlefield Road retains integrity of location because the building does not appear to have been moved since its construction. Setting: 980 Middlefield Road retains integrity of setting because the property and the surrounding neighborhood have maintained original spatial relationships between the buildings and streets. The buildings on Middlefield Road across from the subject property remain strictly residential in use, and Addison Elementary School appears largely as it was in 1951. Although much of the subject block itself was demolished to accommodate the Webster Wood Apartments complex, this does not appear to have removed integrity of setting for 980 Middlefield Road, nor has the construction of the rear caretaker’s residence at 637 Addison Avenue or the demolition of the building 645 Addison Avenue. Design: 980 Middlefield Road retains integrity of design. Physical evidence, building permit records, and historic photographs indicate the building has been very minimally altered. The building retains all of its character-defining features. Materials: 980 Middlefield Road retains integrity of materials. The 1993 removal of redwood shingles at the gable roofed portion does not compromise the building’s integrity of design. Workmanship: 980 Middlefield Road retains integrity of workmanship. All original features of the building have been retained. The physical evidence of the craft and technology used in constructing the building are still evident. Feeling: 980 Middlefield Road retains integrity of feeling. The building still conveys its identity as an architect-designed midcentury mortuary building. The subject building’s overall aesthetic and historic sense has been retained. Association: 980 Middlefield Road retains integrity of association, as the building retains its identity in community memory as a long-standing mortuary in Palo Alto. Overall, 980 Middlefield Road retains integrity. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 40 - Page & Turnbull, Inc. VI. CONCLUSION The mortuary building at 980 Middlefield Road was constructed in 1951 west of the intersection of Middlefield Road and Addison Avenue. The building is eligible for individual listing in the California Register under Criterion 3 for its distinctive Midcentury Modern design, as a representative midcentury property type, and as a work of architect Leslie Nichols. The building retains integrity. Thus, 980 Middlefield Road appears to qualify as a historic resource for the purposes of review under the California Environmental Quality Act (CEQA). Two associated rear lots addressed 637-45 Addison Avenue do not contribute to the mortuary’s significance or integrity. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 41 - Page & Turnbull, Inc. VIII. REFERENCES CITED PUBLISHED WORKS “100 Years Caring For Yours- the Funeral Business in Palo Alto.” PAHA. October 3, 1999. “$20,000 Mortuary to be Built by Local Firm.” Palo Alto Times. February 22, 1924. “$375,000 Palo Alto Suit Filed Over Funeral Costs.” Palo Alto Times. February 26, 1971. “An Addition of Beauty and Dignity.” Daily Palo Alto Times. November 29, 1951. “Architect firm is putting up its own building.” Palo Alto Times. January 4, 1946. “Articles Are Filed in State Capital for New Mortuary.” Palo Alto Times. February 23, 1949. Brown, Mary. San Francisco Planning Department, San Francisco Modern Architecture and Landscape Design, 1935-1970, Historic Context Statement, Final Draft. January 12, 2011. California Office of Historic Preservation. Technical Assistant Series No. 7, How to Nominate a Resource to the California Register of Historic Resources. Sacramento: California Office of State Publishing, 4 September 2001. Dremann, Sue. “Palo Alto’s oldest funeral home closes amid high land values, changing times.” Palo Alto Weekly. November 1, 2013. “Embalmers’ Strike Settled.” San Francisco Chronicle. July 15, 1971. “Ex-MP cop joins Roller & Hapgood.” Palo Alto Times. February 3, 1949. Gordon, Jeremy. “Mayer paid $11 million for Roller & Hapgood.” Palo Alto Daily Post. November 8, 2013. “Helping the Living to Carry On.” Peninsula Times Tribune. May 11, 1981. “Leslie Nichols, noted architect in Midpeninsula, succumbs at 75.” Palo Alto Times. December 17, 1969. “New Funeral Home is Completed Here.” Palo Alto Times. August 5, 1924. “New Mortuary.” San Jose Mercury News. December 27, 1951. “New of 25 Years Ago (from files of the Times).” Palo Alto Times. July 27, 1912. “Plenty of room for body storage during strike, morticians say.” Palo Alto Times. June 26, 1971. Richmond, Emily. “Changing views about death over funeral homes’ 100 years.” Palo Alto Daily News. October 1, 1999. “Roller & Hapgood acquires a competitor.” Palo Alto Times. September 8, 1976. “Roller & Hapgood planning mortuary on Middlefield Road.” Palo Alto Times. November 28, 1950. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 42 - Page & Turnbull, Inc. “Roller & Hapgood takes 2 ‘outsiders’ as partners.” Palo Alto Times. September 9, 1970. Sacks, Melinda. “Death in the family.” Palo Alto Weekly. November 6, 1991. “The three incarnations of 1313 Newell Road.” The Tall Tree. October 2016. Ward, Winslow and the Palo Alto Historical Association. Palo Alto: A Centennial History. Palo Alto Historical Association: Palo Alto, CA, 1993. “Yahoo CEO buys funeral home.” Palo Alto Daily Post. October 29, 2013. UNPUBLISHED RECORDS Brown, Mary. San Francisco Planning Department, San Francisco Modern Architecture and Landscape Design, 1935-1970, Historic Context Statement, Final Draft. January 12, 2011. City of Palo Alto Building Inspection office. Building permits. “Comprehensive Plan.” City of Palo Alto. Revised 2007. Dames & Moore. “Final Survey Report – Palo Alto Historical Survey Update: August 1997-August 2000.” Prepared for the City of Palo Alto Planning Division. February 2001. Dames & Moore. “Study Priority 1 and Study Priority 2 Properties: Preliminary Assessments of Eligibility for the National Register or California Register.” Prepared for the City of Palo Alto Planning Division. January 1999. Palo Alto Historical Association (Research notes and Property file collection, untitled news clippings from Palo Alto Daily News, Palo Alto Times, and Palo Alto Live Oak). Palo Alto Planning Department Files (NA (93-ARB-19)). INTERNET SOURCES “A Flash History of Palo Alto.” Quora. http://www.quora.com/How-is-the-historical-city-Mayfield- CA-related-to-Palo-Alto-CA. Bowling, Matt. “The Meeting on the Corner: The Beginning of Mayfield’s End.” Palo Alto History.org. http://www.paloaltohistory.com/the-beginning-of-mayfields-end.php. Danner, Peter. “A Timeline of the Palo Alto Lawn Bowls Club,” https://www.palbc.org/history/. “Depression, War, and the Population Boom.” Palo Alto Medical Foundation- Sutter Health. http://www.pamf.org/about/pamfhistory/depression.html. “Gamble, Edwin and Elizabeth L. House,” PCAD. http://pcad.lib.washington.edu/building/16676/. “History of Stanford.” Stanford University. http://www.stanford.edu/about/history/. Historic Resource Evaluation 980 Middlefield Road and 637-45 Addison Avenue Palo Alto, California August 8, 2018 - 43 - Page & Turnbull, Inc. “Leslie I. Nichols,” PCAD. http://pcad.lib.washington.edu/person/5922/ “Old Palo Alto.” www.paloaltoonline.com/news/2009/01/19/old-palo-alto “Palo Alto, California.” Wikipedia. http://en.wikipedia.org/wiki/Palo_Alto,_California#cite_note- 12. “Palo Alto Historic Buildings Inventory.” http://www.pastheritage.org/inventory.html “Roller Hapgood Tinney.” http://www.shoppaloalto.com/rollerhapgoodtinney/?listing.action=about Sanborn Fire Insurance Company Maps. http://archive.org. United States federal census records. Ancestry.com. www.ancestry.com. “Webster Wood Apartments.” https://www.apartmentfinder.com/California/Palo-Alto- Apartments/Webster-Wood-Apartments. 417 S. Hill Street, Suite 211 Los Angeles, California 90013 213.221.1200 / 213.221.1209 fax 2401 C Street, Suite B Sacramento, California 95816 916.930.9903 / 916.930.9904 fax 417 Montgomery Street, 8th Floor San Francisco, CA 94104 415.362.5154 / 415.362.5560 fax ARCHITECTURE PLANNING & RESEARCH PRESERVATION TECHNOLOGY www.page-turnbull.com The Corner House on Addison 980 Middlefield Road Introduction to the facility: The Corner House on Addison would be home to various classes, workshops, special events and collaborative spaces. The mission of the facility would be to provide a vibrant, welcoming space for traditional and non-traditional professionals to collaborate, work, learn, find support, build community, and spend time with their families, friends, and neighbors. Most specifically, the establishment would focus on providing a supportive place for working women, especially mothers, as they seek to balance their work and family lives. While not excluding any groups or individuals, the majority of programming will be of interest to mothers, children and families. The Corner House will concentrate on the welfare and success of our (female/mother) workforce, while supporting women’s (and men’s) desire to be an active, present, and productive parent. The organization would provide space, time, and energy to support professionals on their path to self-defined success while raising thriving families. The facility would meet the goals of the Palo Alto community by repurposing land and/existing buildings to address these important needs of our community. The facility design itself will include various multipurpose rooms (that can function as classrooms or meeting spaces), a kitchen, administrative spaces, a fitness room, playground, atrium, patio and garden. We anticipate that the facility would offer light food and beverage service (a coffee bar in the morning, a lunch buffet around lunchtime, etc.) and some specialty retail (for example, logo wear or materials needed for classes). Programming: To achieve its goals, the facility would offer to house or host these types of programming and uses: ●Flexible collaboration spaces, such as coworking tables and desks, conference rooms, and presentation spaces ●Workshops, classes, and lectures for all ages, including cultural, art, musical education, literary, visual and/or performing arts, culinary arts, professional development, and health/wellness ●Special events such as speaker series, small performances, networking events, and family bonding experiences ●Specific family-oriented programming such as tutoring, lifelong learning programs, support groups, and more ●Light food and beverage service to support community building: coffee bar, lunch buffet, snacks, tea time, catering for events. ●Venue rental for private and special events such as non-profits, alumni associations and more ●An accepting and accommodating setting for nursing mothers ●A concentration on well-rounded health, wellness, and fitness ●Collaborative groups and programming aimed at furthering the professional development of working women ●Networking and relationship building among the community ●Safe and thoughtfully designed workspace accommodations for non-traditional working parents (such as freelancers, writers/artists, entrepreneurs, consultants, or those in remote roles) to thrive professionally Public Benefits: ●Providing professional women and their families with access to previously unavailable resources that are of inherent value to the community at large 1 ●Making available free or affordable rental space for non-profit and/or charity events at least 12 times per year* ●Hosting various free or undermarket rate classes, workshops or other events for the public community at least six times per year* ●Offering to host, free of charge, at least 10 meetings and/or small gathering per calendar year for the purpose of community outreach, volunteering, charity or other like use cases Daily & Monthly Use: Classes and workshops: On a daily basis the facility would hold classes and workshops for youth and adults that may include music, visual and/or performing art programs, cooking, professional development, dance, fitness, health/wellness, language and academic/tutoring programs. These programs will be scheduled to control the influx and egress from the building and the property. The facility anticipates producing an estimated: ●10-20 classes per day ●An average of 5-25 students each ●We anticipate that for each student in the class, there will be an adult that likely stays on the premises -- either participating in a parent-participation class or taking advantage of the facility’s amenities. ●Variable: depending on schedule, time of year, interest, etc. Collaboration spaces: Normal use of the facility will also include parents or individuals utilizing collaboration spaces (such as coworking tables and conference rooms) to work, read, write, reflect, seek support from mentors or peers, network with others in the community, and share ideas. We anticipate that many of those utilizing the collaboration spaces are guardians or partners of participants in classes and workshops. Others may be mothers/parents that require a welcoming space to tend to a young child (such as a nursing infant) while also conducting calls or tending to other personal or professional needs. The facility anticipates: ●Approximately 100 patrons with access to collaboration spaces on a monthly basis utilizing this space at different windows of time and for different lengths of times. ●We anticipate no more than 50 patrons with accessing these collaboration spaces at one time. ●We do not expect these patrons to arrive, gather or depart en mass. Special Events: The facility anticipates other special events or programs to occur irregularly. The facility hopes to produce or host: ●Approximately 250 small events, with less than 75 attendees and no more than 10 per week. ●Approximately 150 large events with more than 75 attendees, no more than 4 per week. ●Special Events will not ever exceed Code Standards for the building, or 400 attendees, whichever is less. An example of a small event might be a special guest hosting a group discussion on child rearing practices or diversity in the workplace. An example of a large event might be a family bonding experience such as an indoor picnic or a charity fundraiser. 2 Other Patrons of the Facility: Guests and members may also enjoy utilizing the following spaces on a daily basis: ●Coffee bar and light buffet lunch ●Health and wellness room ●Garden and outdoor play space ●Patio ●Atrium We anticipate that these spaces will be used for varying intervals of time throughout the day. Food & Beverage: ●The facility will offer light food and beverage options to members and guests on a normal day. ●Special events may require catering services. Fitness Space: ●The facility would like to incorporate a room within its design specifically focused on health and wellness to support and encourage an active lifestyle. ●The room will be used for things like: meditation, pilates, yoga, stretching, wellness seminars. ●This room would include up to 10 pieces of exercise equipment, including treadmills, stationary bikes or like machines. Comparison to prior use of the property : Prior use of the facility: ●Mortuary Weekly use: ●Multiple services per week, often multiple per day, with tens to hundreds of mourners Supporting Data: The National Funeral Directors Association published in January 2018 that the NFDA-member Firm Caseload (i.e., number of decedents cared for) ranged normally from 1-1000/per year [a median of 500.2]. ○58.4% reporting near 150 per year or less (assumed average of 12.5 per month or 2.88 per week) ○46.1% reporting 151-1000 or more (median/average of 575.5 per year or assumed average of 47.9 per month or 11.06 per week). With no formula to assess the average number of mourners at a funeral, conversations with Funeral Homes concluded that attendance numbers normally reflect age of the deceased and involvement in the community and can range from 10-600 people. The prior owners of this property noted at sale that they could hold multiple funerals a day and expected tens to hundreds of attendees on a normal day. 3 In comparison, 2.8-11 funerals per week with tens to hundreds of mourners gathering en mass is presumed to have been a greater strain on noise and traffic due to a private event than the facilities newly suggested model and use. Employees: In order to run smooth and successful operations of the facility and the programming, the facility plans to employ: ●4-8 full-time employees. ○Full time positions may be: Director, Programs Manager, Facilities Manager, Teacher/Children’s Coordinator, IT Manager, HR Manager, and Kitchen Manager. ●10-20 part-time, internship or contract employees in an effort to offer flexibility and optionality for working parents, students, and others. ○Part-time, internship or contract positions positions or departments may be: receptionist, teachers, children’s programming, security, accounting, janitorial, marketing, landscaping and grounds, food service, and special programs/events. ○For special events, food service and other staffing as required based on size. Hours of Operation: ●The hours of operation will be 7:00 a.m. to 7:00 p.m. seven days a week. ●Those with access to the collaboration spaces may arrive or depart earlier or later than normal business operation hours. ●Some special events and classes may occur outside of regular operation hours. ●All outdoor events with amplified sound shall cease operations no later than 9:00 p.m. Sunday-Thursday and 10:00 p.m Friday and Saturday. ●All indoor events shall cease operations no later than 12:00 a.m., with clean-up no later than 1:00 a.m. Public Access & Membership: ●As with children’s classes, adult classes, workshops and speaker events throughout both many public and private facilities in the area, The Corner House would require participants to register and submit appropriate registration fees. ○Registration will help to ensure safety and security for young children and mothers, to control the influx of guests and traffic flow, as well as meet the financial requirements to operate and meet the cost of overhead. ●The majority of classes, workshops and many special events will be available for registration to all members of the community. ●Some programs and workspaces will be available to members only as the organization aims to create an established, supportive community of regular attendees encouraging mentor-mentee relationships and peer-to-peer dynamics. As with Lucie Stern Community Center and other Palo Alto Community Centers, as well as like facilities such as the JCC, Women’s Center, and Hanahaus reservation for picnic spaces and facility rentals are subject to availability, application approval, and to specific cost and conditions. Parking/Traffic Considerations: ●The property will be able to accomodate 36 cars in the lot for self-park. ●We will have 25 bike parking spaces. ●A designated curbed in drop-off and pick-up area to reduce disruptions of traffic flow on Addison. ●Special events may require valet parking in the facility’s lot in order to accommodate additional vehicles. ●Large events may require the facility or the host (if external) to accommodate driving guests at offsite lots, offer shuttles or rideshare credits to attendees in order to best manage parking. 4 The facility will encourage walking, biking, rideshare, carpooling or public transportation for all patrons. The neighborhood is a walkable and the organization expects that this will be a preferred option for many residents utilizing the facility. Rideshares and public transportation are readily available and close in proximity. Construction activities (Noise & traffic): We are sensitive to the fact that having two construction projects next to one another with some level of concurrent schedule imposes some challenges. In order to mitigate those complexities, we will work closely with the city and Addison Elementary contractor as needed to review, agree upon and implement the following: Trade Parking and Arrival Time We will encourage all trades to carpool as much as possible to reduce total number of vehicles on site for daily forces. Additionally, our site allows for all trade parking to be within site limits, therefore not impacting street parking. As for arrival times, though work cannot begin until 8am, we would require tradespersons to arrive by 7:30 to work around child drop-off and school hours. Work Hours and Departure Work hours would be 8am-6pm daily with site departure after 3:30pm, allowing for school pick up. Deliveries and Staging We will work with the city on traffic control plans on when large material drop offs are needed, so we can have the trucks delivered in a timely matter, and will coordinate deliveries with Addison Elementary so we do not have multiple at one time. Optimally, we will be able to have trucks arrive early to the site before morning drop off occurs as to not interfere with children and their parents. If that is not possible, we would schedule material deliveries around critical school hours. All materials will be staged within site fence limits. Construction Noise A majority of our work is internal to the current structure and therefore, our work can be sequenced to maintain the exterior envelope as long as possible to minimize noise. We will also have screened fencing around site throughout project and can install absorptive materials to inside of fence as needed once we move to exterior work in order to lessen impact on surrounding areas. Parcel(s) Consideration/Design: Facility is pursuing a certificate of compliance to merge the three lots as part of any formal application. 5 Attachment F Project Plans Hardcopies of project plans are provided to Councilmembers. These plans are available to the public online and by visiting the Planning and Community Environmental Department on the 5 th floor of City Hall at 250 Hamilton Avenue. Directions to review Project plans online: 1. Go to: http://bit.ly/PaloAltoPlanningProjects 2. Scroll down the center of the page and click “View pending projects” 3. Scroll to find “980 Middlefield” and click the address link 4. On this project specific webpage you will find a link to the project plans and other important information Direct Link to Project Webpage: https://tinyurl.com/980-Middlefield CITY OF PALO ALTO OFFICE OF THE CITY CLERK October 1, 2018 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the September 10 and 17, 2018 Council Meetings Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: • Attachment A: 09-10-18 DRAFT Action Minutes (DOCX) • Attachment B: 09-17-18 DRAFT Action Minutes (DOCX) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 10 Special Meeting September 10, 2018 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:12 P.M. Present: DuBois, Filseth, Fine, Holman, Kniss, Kou, Scharff, Tanaka, Wolbach Absent: Special Orders of the Day 1. Proclamation Declaring the Month of September Emergency Preparedness Month. Study Session 2. Update From State Legislative Lobbyists on State Legislation. 3. 980 Middlefield Road [18PLN-00129]: Request for Prescreening of a Proposal to Amend the Existing Planned Community (PC) 2152 Zoning in Order to Change the Allowed use From Mortuary to a Private Club or Similar use (STAFF REQUESTS THIS ITEM BE CONTINUED TO OCTOBER 1, 2018). MOTION: Council Member Scharff moved, seconded by Vice Mayor Filseth to continue this item to October 1, 2018. MOTION PASSED: 9-0 Agenda Changes, Additions and Deletions None. Minutes Approval 4. Approval of Action Minutes for the August 20, 2018 Council Meeting. MOTION: Council Member Scharff moved, seconded by Vice Mayor Filseth to approve the Action Minutes for the August 20, 2018 Council Meeting. DRAFT ACTION MINUTES Page 2 of 10 City Council Meeting Draft Action Minutes: 9/10/18 MOTION PASSED: 9-0 Consent Calendar MOTION: Council Member Scharff moved, seconded by Vice Mayor Filseth, third by Council Member Wolbach to pull Agenda Item Number 10- SECOND READING: Adoption of an Ordinance to Amend the Contract Between the Board of Administration of the California Public Emplo yees’ Retirement System (CalPERS)… to be heard as Agenda Item Number 12A on Action. MOTION: Council Member DuBois moved, seconded by Council Member Holman, third by Council Member Kou, fourth by Vice Mayor Filseth, fifth by Council Member Wolbach to pull Agenda Item Number 12- SECOND READING: Adoption of an Ordinance Amending Chapter 9.68 (Rental Housing Stabilization) of Title 9… to be heard on September 17, 2018. MOTION: Council Member Scharff moved, seconded by Vice Mayor Filseth to approve Agenda Item Numbers 5-9, 11. 5. Resolution 9791 Entitled, “Resolution of the Council of the City of Palo Alto Authorizing the Bay Area Water Supply and Conservation Agency to Negotiate With the City and County of San Francisco to Amend the 2009 Water Supply Agreement.” 6. QUASI-JUDICIAL. 567 Maybell: Recommendation by the Palo Alto Historical Association for a new Street Name for a new 16 -unit Subdivision, (Tract No. 10434). Environmental Assessment: Section 15061(b)(3) not Subject to California Environmental Quality Act(CEQA). Zoning Districts: Two-family Residential (R-2) and Low Density Multiple-Family Residence RM-15. 7. Approval of an Agreement With Santa Clara Valley Water District, in the Amount of $227,000, for Concrete Channel Lining Repair Along Matadero Creek; and Approval of a $227,000 Water Fund Operating Budget Amendment. 8. Policy and Services Committee Recommendation to Adopt an Ordinance Adding Sections 2.30.620 Through 2.30.690 to Title 2 of the Administrative Code to Establish Criteria and Procedures for Protecting Personal Privacy When Considering the Acquisition and use of Surveillance Technologies, and Provide for Ongoing Monitoring and Reporting. 9. Policy and Services Committee Recommendation to Approve the Status Update of the Community Services Department: Fee Schedule Audit. DRAFT ACTION MINUTES Page 3 of 10 City Council Meeting Draft Action Minutes: 9/10/18 10. SECOND READING: Adoption of an Ordinance to Amend the Contract Between the Board of Administration of the California Public Employees’ Retirement System (CalPERS) and the City of Palo Alto to Implement the Share of Employer Contribution in Accordance With Section 20516 of the California Government Code (FIRST READING: August 20, 2018 PASSED: 9-0). 11. Ordinance 5448 Entitled, “Ordinance of the Council of the City of Palo Alto Adding Chapter 10.62 to Title 10 (Vehicles and Traffic) of the Municipal Code to Regulate Unnecessary Idling of Vehicles (Continued From April 2, 2018 and June 12, 2018) (FIRST READING: July 30, 2018 PASSED: 9-0).” 12. SECOND READING: Adoption of an Ordinance Amending Chapter 9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals, and Safety) of the Palo Alto Municipal Code to Require Relocation Assistance for No-fault Eviction for Multifamily Housing Developments Containing 50 or More Rental Units (FIRST READING: August 27, 2018 PASSED 7-1 Tanaka no, Fine Absent). MOTION PASSED: 8-1 Holman no Action Items 12A. Ordinance 5449 Entitled, “Ordinance of the Council of the City of Palo Alto to Amend the Contract Between the Board of Administration of the California Public Employees’ Retirement System (CalPERS) and the City of Palo Alto to Implement the Share of Employer Contributio n in Accordance With Section 20516 of the California Government Code (FIRST READING: August 20, 2018 PASSED: 9-0).” MOTION: Council Member DuBois moved, seconded by Council Member Wolbach to adopt an Ordinance amending the Contract Between the Board of Administration of the California Public Employees’ Retirement System (CalPERS) and the City of Palo Alto to Implement the Share of Employer Contribution. MOTION PASSED: 8-0 Kou not participating 13. Approval of Response to the Grand Jury Report on the Affordable Housing Crisis and Discussion of Establishing a Regional Housing Needs Assessment (RHNA) Sub-region. DRAFT ACTION MINUTES Page 4 of 10 City Council Meeting Draft Action Minutes: 9/10/18 MOTION: Council Member DuBois moved, seconded by Council Member Scharff to: A. Approve the draft responses to the Santa Clara County Civil Grand Jury regarding the report entitled “Affordable Housing Crisis: Density Is Our Destiny” dated June 21, 2018; and B. Support, along with the Cities Association Board of Directors, the participation of the City in a Regional Housing Needs Allocation (RHNA) sub-region. MOTION PASSED: 8-1 Fine no 14. Colleagues’ Memo From Council Members DuBois, Holman, Kou and Wolbach Regarding Strengthening Renter Protection for Palo Alto Residents (Previous Colleagues’ Memo Heard on October 16, 2017). Mayor Kniss advised she will not participate in this Agenda Item due to a financial interest that generates rental income. She left the meeting at 9:00 P.M. Council took a break from 9:00 P.M. to 9:10 P.M. MOTION: Council Member DuBois moved, seconded by Council Member Holman to: A. Direct Staff to immediately return to Council with specific proposals to adjust the current renter protection Ordinance potentially as an emergency Ordinance regarding: reasonable eviction mitigations such as relocation provisions for tenants facing displacement; and B. Refer this memo to the Policy and Services Committee for review. The review should include at least the following: i. Review of the existing renter protection Ordinance and comparable ordinances in the San Francisco Bay Area; ii. Evaluate reasonable relocation assistance to be provided for tenants of properties with 5 or more units displaced due to change of use, sizable rental increases, or eviction without just cause, while protecting the fair rights of property owners; iii. Strengthened enforcement measures to ensure compliance with and penalties for violations of Palo Alto’s existing requirement to offer an annual lease to tenants; DRAFT ACTION MINUTES Page 5 of 10 City Council Meeting Draft Action Minutes: 9/10/18 iv. Consider other updates to existing renter protections and mediation program as needed to continue a healthy and diverse community; and v. Discuss the full range of renter protections. Discussion topics to include just cause evictions and rent stabilization among other protections. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Motion Part B.ii., “5 or more” with “2 or more.” AMENDMENT: Council Member Wolbach moved, seconded by Council Member Fine to remove Part B.v. from the Motion. AMENDMENT FAILED: 4-4 DuBois, Filseth, Holman, Kou no, Kniss absent SUBSTITUTE MOTION: Council Member Tanaka moved, seconded by Council Member Scharff to conduct a detailed expert economic analysis including effect on crime, amount of housing generated, quality of rental protected housing, detailed study of other cities with rent control, and effect on age diversity, new resident versus existing resident diversity in the City. SUBSTITUTE MOTION PASSED: 6-2 Kou, Wolbach no, Kniss absent MOTION: Council Member DuBois moved, seconded by Council Member Holman to: A. Direct Staff to immediately return to Council with specific proposals to adjust the current renter protection Ordinance potentially as an emergency Ordinance regarding: reasonable eviction mitigations such as relocation provisions for tenants facing displacement; and B. Refer this memo to the Policy and Services Committee for review. The review should include at least the following: i. Review of the existing renter protection Ordinance and comparable ordinances in the San Francisco Bay Area; ii. Evaluate reasonable relocation assistance to be provided for tenants of properties with 2 or more units displaced due to change of use, sizable rental increases, or eviction without just cause, while protecting the fair rights of property owners; DRAFT ACTION MINUTES Page 6 of 10 City Council Meeting Draft Action Minutes: 9/10/18 iii. Strengthened enforcement measures to ensure compliance with and penalties for violations of Palo Alto’s existing requirement to offer an annual lease to tenants; iv. Consider other updates to existing renter protections and mediation program as needed to continue a healthy and diverse community; and v. Discuss the full range of renter protections. Discussion topics to include just cause evictions and rent stabilization among other protections. AMENDMENT: Council Member Fine moved, seconded by Council Member Tanaka to add to the Motion, “the best renter protection is more supply.” AMENDMENT PASSED: 5-3 Filseth, Holman, Kou no, Kniss absent MOTION AS AMENDED RESTATED: Council Member DuBois moved, seconded by Council Member Holman to: A. Direct Staff to immediately return to Council with specific proposals to adjust the current renter protection Ordinance potentially as an emergency Ordinance regarding: reasonable eviction mitigations such as relocation provisions for tenants facing displacement; and B. Refer this memo to the Policy and Services Committee for review. The review should include at least the following: i. Review of the existing renter protection Ordinance and comparable ordinances in the San Francisco Bay Area; ii. Evaluate reasonable relocation assistance to be provided for tenants of properties with 2 or more units displaced due to change of use, sizable rental increases, or eviction without just cause, while protecting the fair rights of property owners; iii. Strengthened enforcement measures to ensure compliance with and penalties for violations of Palo Alto’s existing requirement to offer an annual lease to tenants; iv. Consider other updates to existing renter protections and mediation program as needed to continue a healthy and diverse community; DRAFT ACTION MINUTES Page 7 of 10 City Council Meeting Draft Action Minutes: 9/10/18 v. Discuss the full range of renter protections. Discussion topics to include just cause evictions and rent stabilization among other protections; and C. The best renter protection is more supply. MOTION AS AMENDED FAILED: 4-4 Fine, Scharff, Tanaka, Wolbach no, Kniss absent MOTION: Council Member Wolbach moved, seconded by Council Member Scharff to: A. Direct Staff to immediately return to Council with specific proposals to adjust the current renter protection Ordinance potentially as an emergency Ordinance regarding: reasonable eviction mitigations such as relocation provisions for tenants facing displacement; and B. Refer this memo to the Policy and Services Committee for review. The review should include at least the following: i. Review of the existing renter protection Ordinance and comparable ordinances in the San Francisco Bay Area; ii. Evaluate reasonable relocation assistance to be provided for tenants of properties with 5 or more units displaced due to change of use, sizable rental increases, or eviction without just cause, while protecting the fair rights of property owners; iii. Strengthened enforcement measures to ensure compliance with and penalties for violations of Palo Alto’s existing requirement to offer an annual lease to tenants; and iv. Consider other updates to existing renter protections and mediation program as needed to continue a healthy and diverse community. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Motion Part B.ii., “5 or more” with “2 or more” and add to the Motion, “the best renter protection is more supply.” MOTION AS AMENDED PASSED: 7-1 Tanaka no, Kniss absent State/Federal Legislation Update/Action Mayor Kniss returned to the meeting at 11:26 P.M. DRAFT ACTION MINUTES Page 8 of 10 City Council Meeting Draft Action Minutes: 9/10/18 MOTION: Council Member Scharff moved, seconded by Council Member DuBois to hear Agenda Item Number 16 before Agenda Item Number 15. MOTION PASSED: 9-0 16. Review and Potential Adoption of Positions on State and Local Measures on the November 6, 2018 Ballot. MOTION: Mayor Kniss moved, seconded by Council Member Fine to oppose Measure F, City of Palo Alto Health Care Measure. MOTION PASSED: 9-0 MOTION: Council Member Scharff moved, seconded by Vice Mayor Filseth to support Measure E, City of Palo Alto Transient Occupancy Tax. MOTION PASSED: 6-3 Holman, Kou, Tanaka no MOTION: Vice Mayor Filseth moved, seconded by Council Member Scharff to take no position on Measure A. MOTION PASSED: 8-1 Wolbach no MOTION: Council Member DuBois moved, seconded by Council Member Scharff to support Measure Z, Palo Alto Unified School District School Bond MOTION PASSED: 9-0 MOTION: Council Member Scharff moved, seconded by Council Member Fine to take no position Measure Y, Palo Alto Unified School District Term Limits. MOTION PASSED: 9-0 MOTION: Council Member DuBois moved, seconded by Council Member Holman to support Proposition 1, Authorizes Bonds to Fund Specified Housing Assistance Programs and Proposition 2, Authorizes Bonds to Fund Existing Housing Program for Individuals with Mental Illness. MOTION PASSED: 6-2-1 Fine, Tanaka no, Kniss abstain MOTION: Council Member Wolbach moved, seconded by Council Member Fine to oppose Proposition 6, Eliminates Certain Road Repair and Transportation Funding. Requires Certain Fuel Taxes and Vehicle Fees be Approved by The Electorate. DRAFT ACTION MINUTES Page 9 of 10 City Council Meeting Draft Action Minutes: 9/10/18 MOTION PASSED: 9-0 MOTION: Council Member DuBois moved, seconded by Council Member Scharff to support Proposition 3, Authorizes Bonds to Fund Projects for Water Supply and Quality, Watershed, Fish, Wildlife, Water Conveyance, and Groundwater Sustainability and Storage. MOTION PASSED: 8-0-1 Tanaka abstain At this time Council heard Agenda Item Number 15. 15. Review and Approval of the Recommended City Positions for the 2018 League of California Cities Resolutions. MOTION: Council Member Fine moved, seconded by Council Member Holman to authorize the City’s voting delegate to vote on yes on the pest control resolution up for consideration at the annual League of California Cities conference in Long Beach from September 12 – 14, 2018. MOTION PASSED: 9-0 MOTION: Council Member Fine moved, seconded by Mayor Kniss to authorize the City’s voting delegate to vote on no on the local control resolution up for consideration at the annual League of California Cities conference in Long Beach from September 12 – 14, 2018. SUBSTITUTE MOTION: Council Member Scharff moved, seconded by Council Member DuBois to authorize the City’s voting delegate to vote on yes on the local control resolution up for consideration at the annual League of California Cities conference in Long Beach from September 12 – 14, 2018. SUBSTITUTE MOTION PASSED: 6-3 Fine, Kniss, Wolbach no At this time Council returned to Agenda Item Number 16. 16. Review and Potential Adoption of Positions on State and Local Measures on the November 6, 2018 Ballot. Mayor Kniss advised she will not participate in this Agenda Item as it relates to Proposition 10 due to a financial interest that generates rental income. She left the meeting at 12:19 A.M. MOTION: Council Member Wolbach moved, seconded by Council Member Fine to take no position on Proposition 10, Expands Local Governments’ Authority to Enact Rent Control on Residential Property. DRAFT ACTION MINUTES Page 10 of 10 City Council Meeting Draft Action Minutes: 9/10/18 SUBSTITUTE MOTION: Council Member Scharff moved, seconded by Council Member Tanaka to oppose Proposition 10, Expands Local Governments’ Authority to Enact Rent Control on Residential Property. SUBSTITUTE MOTION FAILED: 3-5 Fine, Scharff, Tanaka yes, Kniss absent MOTION PASSED: 8-0 Kniss absent Adjournment: The meeting was adjourned at 12:41 A.M. CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 3 Special Meeting September 17, 2018 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:04 P.M. Present: DuBois, Filseth, Fine; Holman arrived at 5:15 P.M., Kniss, Kou, Scharff; Tanaka arrived at 5:09 P.M., Wolbach Absent: Closed Session 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (James Keene, Ed Shikada, Kiely Nose, Rumi Portillo, Sandra Blanch, Nicholas Raisch, Molly Stump, Terence Howzell, and Michelle Flaherty) Employee Organizations: 1) Service Employees International Union, (SEIU) Local 521; 2) Palo Alto Fire Chiefs’ Association (FCA); 3) International Association of Fire Fighters (IAFF), Local 1319; 4) Utilities Management Professional Association of Palo Alto (UMPAPA); and 5) Palo Alto Police Managers’ Association (PAPMA) Authority: Government Code Section 54957.6(a). MOTION: Council Member Scharff moved, seconded by Council Member Wolbach to go into Closed Session. MOTION PASSED: 7-0 Holman, Tanaka absent Council went into Closed Session at 5:04 P.M. Council returned from Closed Session at 6:20 P.M. Mayor Kniss announced no reportable action. Special Orders of the Day 2. Proclamation Honoring Mary D. Gordon. DRAFT ACTION MINUTES Page 2 of 3 City Council Meeting Draft Action Minutes: 9/17/18 3. Recognition of Businesses Participating in the Clean Water Action "Rethink Disposable" Program. Agenda Changes, Additions and Deletions None. Study Session 4. Study Session on Airplane Noise. THIS ITEM IS CONTINUED TO A DATE UNCERTAIN. 5. Request for a Pre-screening of a Proposal to Rezone the Property at 788 San Antonio Road From Service Commercial (CS) to Multiple- Family Residential (RM-40) and to Redevelop the Site With a Three - story, Approximately 46,000 Square Foot, 48-unit (Including Five Below Market Rate Units) Residential Project and a Below-grade Parking Garage. Environmental Assessment: Not a Project; any Subsequent Formal Application Would be Subject to the California Environmental Quality Act (CEQA). THIS ITEM IS CONTINUED TO A DATE UNCERTAIN. 6. Review of Public Safety Building Design and Project Status. Minutes Approval 7. Approval of Action Minutes for the August 27, 2018 Council Meeting. MOTION: Council Member Scharff moved, seconded by Vice Mayor Filseth to approve the Action Minutes for the August 27, 2018 Council Meeting. MOTION PASSED: 9-0 Consent Calendar Council Members Holman and Kou registered no votes on Agenda Item Number 8- Approval of a Contract With the Empowerment Institute… MOTION: Council Member Scharff moved, seconded by Vice Mayor Filseth to approve Agenda Item Numbers 8-9. 8. Approval of a Contract With the Empowerment Institute for $25,000 for the Community Engagement Block Program (Continued From April 2, 2018). DRAFT ACTION MINUTES Page 3 of 3 City Council Meeting Draft Action Minutes: 9/17/18 9. Approval of Amendment Number 1 to Contract Number C16161210 With Shah Kawasaki Architects, Inc., in an Amount Not-to-Exceed $97,626 to Provide Continued Construction Administration and LEED Certification Services for Fire Station 3 Replacement Project (PE-15003), for a new Total Not-to-Exceed Amount of $696,678, and to Extend the Term Through May 17, 2019. MOTION FOR AGENDA ITEM NUMBER 8 PASSED: 7-2 Holman, Kou no MOTION FOR AGENDA ITEM NUMBER 9 PASSED: 9-0 Action Items 10. Adoption of an Ordinance Amending Chapter 9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals, and Safety) of the Palo Alto Municipal Code to Require Relocation Assistance for No -fault Eviction for Multifamily Housing Developments Containing 50 or More Rental Units, Either on SECOND READING of the Ordinance Adopted on FIRST READING on August 27, 2018 (PASSED 7-1 Tanaka no, Fine absent), or on FIRST READING of a Modified Ordinance on the Same Topic (Removed From Consent on September 10, 2018). MOTION: Council Member Fine moved, seconded by Council Member Wolbach to adopt, on First Reading, a revised Ordinance (Staff Report, Attachment B) amending Chapter 9.68 (Rental Housing Stabilization) of the Palo Alto Municipal Code to require relocation assistance payments for no- fault evictions for Multifamily Housing Developments containing 50 or more rental units. MOTION PASSED: 8-1 Tanaka no Adjournment: The meeting was adjourned at 11:09 P.M. City of Palo Alto (ID # 9451) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/1/2018 City of Palo Alto Page 1 Summary Title: Continue Southgate RPP Pilot Program Title: Approve Extension of the Pilot Phase of the Southgate Residential Preferential Parking Program for a Period of Six Months From: City Manager Lead Department: Transportation Recommendation Staff recommends that the City Council continue the pilot phase of the Southgate Residential Preferential Parking (RPP) Program for six months. Executive Summary The residential preferential parking (RPP) program in the Southgate neighborhood is approaching the end of its “pilot” phase and it has largely met expectations: limiting commercial parking on residential streets by requiring permits for any person desiring to park for longer than two hours during business hours. While there have been a couple of issues, including high on-street occupancies (“bunching”) on streets with close proximity to El Camino Real, and complaints from businesses (primarily medical office uses) who have not been able to secure the number of employee parking permits they would like, the pilot has been largely successful. Staff recommends extending the Southgate RPP pilot for six months to further evaluate the program and return to Council in Spring of 2019 with any recommended modifications. Background The City Council established the Southgate RPP Program as a one-year pilot program by adoption of Resolution No. 9688 in June 2017. Permit sales for the Southgate RPP Program pilot began in October, soft enforcement (warnings with no citations) began in November, and full enforcement rolled-out in December 2017. With only two commercial properties within the Southgate neighborhood, only ten Six -month City of Palo Alto Page 2 Employee Parking Permits were made available. Despite there being only two commercial properties in the Southgate neighborhood, there a re seven businesses registered at these two addresses and some employees and some businesses were unable to secure the number of employee parking permits desired. Early in the program’s implementation, some of these business owners requested that the City make available more Six-month Employee Parking Permits because the limited supply had quickly sold out and they were unable to secure permits for their employees. In response, Staff recommended the addition of 15 Six-month Employee Parking Permits through the remainder of the pilot phase and other actions. On January 29, 2018, the Council considered staff’s recommendation and provided alternative direction to keep the program generally as-is during the remainder of the pilot period, with very minor modifications. These modifications included: • Petitioning Caltrans to approve the annexation of a segment of the west side El Camino Real (SR 82) between Churchill Avenue and Park Boulevard into the Southgate RPP program area; • Adding an additional 15 Six-month Employee Parking Permits after the segment is annexed; and • Clarifying the Resolution language regarding re-parking in the RPP program area. Council at that time did not support the Staff recommendation to implement a cap on Daily Employee Parking Permits or install two-hour (non-RPP) parking along the east side of El Camino Real (SR 82) fronting the two commercial properties. On March 5, 2018, the City Council adopted a Resolution implementing the prior Council direction. That Resolution was later amended and replaced by Resolution No. 9756, adopted May 14, 2018, to correct an inadvertently included cap on the number of Daily Employee Parking Permits available for purchase by employers and employees. Staff subsequently submitted a certified copy of the Council Resolution to Caltrans with a request to include a portion of El Camino Real (SR 82) in the Southgate RPP program area. On July 26, 2018, Staff received approval from Caltrans to annex these segments of El Camino Real into the Southgate RPP Program. Staff will be installing signage and increasing the number of employee permits by 15 on November 1, 2018. Discussion In June 2017, the City Council adopted Resolution No. 9688 establishing the Southgate RPP Program as a one-year pilot program. Permit sales for the Southgate RPP Program pilot began in October 2017, with soft enforcement (warnings only, no citations) beginning in November City of Palo Alto Page 3 and full enforcement in December of that year. Permit sales for the Southgate RPP Program pilot began in November 2017 . At that time, there was some concern that businesses that are located at the Churchill Avenue and El Camino Real intersection might have difficulty purchasing permits for themselves and staff. During the first six months of this program, staff reached out to these offices to make sure that they were able to purchase permits immediately after they went on sale. In October 2017, when these first employee permits (which are valid for six months) had to be replaced with new permits, the businesses uses were not able to purchase the permits they needed before the supply was exhausted. Staff met with the business owners and employees to discuss this issue. Occupancy data shows that the average occupancy was 24% in the morning (9:00-11:00AM), 25% mid-day (12:00- 2:00PM), and 22% afternoon (3:00-5:00PM). The City engaged a consultant to conduct a parking occupancy study in Southgate in January and May 2018 in order to measure the occupancy of on-street parking spaces and assess the impact of the RPP program at the midpoint of the one-year pilot. The results of this study found that the average daily occupancy is 24%. On December 20, 2017, staff met with Southgate residents and stakeholders to get RPP program feedback and provide preliminary occupancy data. Meeting attendees provided favorable responses to the RPP program, citing a reduction in neighborhood traffic, improved visibility when driving, seeing a higher number of bicyclists, improved safety for bicyclists, and the availability of parking in their neighborhood. Staff also heard concern about issues of insufficient employee permits available to businesses. Staff also met with residents, businesses and stakeholders on January 10, 2018 to discuss the employee permit issues, occupancy and the potential changes in the pilot program discussed in this report. The proposed Council action would extend the pilot phase of the Southgate RPP Program for six additional months with no change. Policy Implications The following Comprehensive Plan programs and policies are relevant to the Southgate RPP Program: Policy T-5.5 Minimize the need for employees to park in and adjacent to commercial centers, employment districts and schools Policy T-5.11 Work to protect residential areas from parking impacts of nearby businesses and uses, recognizing that fully addressing some existing intrusions may take time. City of Palo Alto Page 4 Policy B-1.2 Promote Palo Alto’s image as a business-friendly community. Assume an active role in fostering businesses, including small start-ups, entrepreneurs, and innovative businesses. Policy B-1.3 Engage with all stakeholders in the community, including businesses of all sizes, local retailers, the public, and City decision-makers in order to understand the challenges businesses and employers face. Policy B-2.3 Recognize that employers, businesses and neighborhoods share many values and concerns, including traffic and parking issues and preserving Palo Alto’s livability, and need to work together with a priority on neighborhood quality of life. Policy B-3.3 Develop strategies for promoting businesses and employers that generate revenues that will support a full range of high-quality City services, including retain and attract revenue-generating businesses. Policy B-4.2 Attract and support small businesses, start-ups, non-profit organizations, and professional services, which are vital to a diverse and innovative economy. Resource Impact As a result of Caltrans’ approval of inclusion of a portion of El Camino Real into the RPP district results, 15 additional Six-month Employee Parking Permits will are available and will generate additional revenue for the City, while also creating additional expenses related to the sales and administration of these permits. Staff will continue to monitor the activity of this progr am and will bring forward any necessary budgetary adjustments as part of the annual budget process. Timeline Current parking permits (resident and employee permits) expire on October 31, 2018 and new permits will go on sale at least 20 days in advance of that date. Environmental Review This program is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen with certainty that there is no possibility the extension of this existing program may have a significant effect on the environment and Section 15301 in that this proposed resolution will have a minor impact on existing facilities. City of Palo Alto (ID # 9485) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/1/2018 City of Palo Alto Page 1 Summary Title: Design Services for RWQCP Secondary Treatment Process Upgrades Title: Approval of Contract Number C19171565 With Brown and Caldwell in the Total Amount Not‐to‐Exceed $2,923,357 to Provide Design Services for Secondary Treatment Process Upgrades (WQ‐19001) at the Regional Water Quality Control Plant From: City Manager Lead Department: Public Wo rks Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to execute the attached contract with Brown and Caldwell (Attachment A) in an amount not to exceed $2,923,357 for the design services for Secondary Treatment Process Upgrades funded by the Capital Improvement Program (project WQ‐19001) at the Regional Water Quality Control Plant. The contract amount includes $2,657,597 for basic services and $265,760 for related, additional but unforeseen work that may develop during the project. Background The Regional Water Quality Control Plant (RWQCP) treats and disposes of wastewater for Palo Alto, Mountain View, Los Altos, Los Altos Hills, East Palo Alto Sanitary District, and Stanford University. The service area is a mix of institutional, residential, and commercial uses consisting of approximately 241,187 residents. The plant’s existing secondary treatment process consists of fixed film reactors (FFRs) installed in 1980 followed by an activated sludge process installed in 1972. Both systems are at the end of their useful lives, needing upgrades and/or replacement to maintain reliability and safety of wastewater treatment. City of Palo Alto Page 2 Discussion The San Francisco Regional Water Quality Control Board is expected to establish new nutrient regulatory requirements in 2019, limiting the total nitrogen load discharging from regional wastewater treatment plants into the San Francisco Bay in 2024. The current wastewater treatment system does not remove nitrogen. The Secondary Upgrades will be based on the anticipated new regulatory requirements, field inspections, preliminary design evaluations, RWQCP staff recommendations, the recommendations of the 2017 Secondary Treatment Evaluation Technical Memorandum, and 2012 Long Range Facilities Plan (LRFP). Upgrading to a biological nutrient removal process (nitrogen removal), with anoxic and aerated zones will improve final water quality, ensure the plant continues to meet effluent discharge permit limits, and allow for the ultimate decommissioning and removal of the aging FFRs. Scope of Services Description The consultant will provide engineering services to design the secondary treatment process upgrades during all phases of the project from preliminary design, design, bid period services, engineering services during construction, and support during commissioning and start‐up. The design includes: re‐configuration of the aeration basins to accommodate the new biological nutrient removal process; design of baffle walls; sizing and specification of new air blowers, air diffusers, and mixing equipment; recirculation pumping systems; modifications to the intermediate pump station to move wet‐weather flows; modifications to return activated sludge pump stations; specifications to allow for decommissioning of the FFRs; and detailed sequencing plans for piping and electrical tie‐ins needed to integrate the new process into the existing RWQCP operational process. Summary of Solicitation Process On April 4, 2018, a notice for Request for Proposals (RFP No. 171565) for design services for the Secondary Treatment Process Upgrades project was posted to the City’s website through Planet Bids: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569&BidID=49588 City of Palo Alto Page 3 A total of 50 design firms, vendors, and contractors downloaded the RFP documents and attachments related to the project through Planet Bids (see link below). Three (3) proposals were received on May 15, 2018. Proposal Description/Number: Design Services for Secondary Treatment Upgrades/ RFP No. 171565 Proposed Length of Project: 18 months of design services 24 months of construction support services Number of Proposals emailed and/or downloaded through Planet Bids: 50 Total Days to Respond to Proposal: 41 Pre‐Proposal Meeting Date: April 11, 2018 Number of Company Attendees at Pre‐ Proposal Meeting 8 firms Number of Proposals Received 3 Range of Proposal Amounts Submitted: $2,650,000 to $2,750,000 Evaluation of Proposals An evaluation committee consisting of Public Works engineering staff reviewed the proposals. The committee carefully reviewed each firm's qualifications and submittal in response to the criteria identified in the RFP, including quality and completeness of the proposal, quality and effectiveness of services, experience with projects of similar scope and complexity, prior record of performance, cost, proposer’s financial stability, and ability to provide future maintenance and/or services. All three firms that submitted proposals were invited to participate in oral interviews on June 13 and 14, 2018. Brown and Caldwell was selected because its proposed team met the experience requirements, has a good record on similar projects, and demonstrated a clear understanding of the constructability to implement an efficient and innovative approach to the project. Brown and Caldwell’s design base service is $2,657,597 with an additional services budget of $265,760. City of Palo Alto Page 4 Timeline If approved, the base design work is estimated to begin in October 2018 and be completed in 18 months. Following the design process, construction of the project is estimated to be completed approximately 24 months after the issuance of a notice to proceed. Resource Impact The funds for the first half of this design contract were appropriated in the FY2019 Wastewater Treatment Fund Capital Improvement Program project WQ‐ 19001. Since the City Council only appropriates funding for a single year of the Capital Improvement Program, funding for the second half of the design contract will be brought forward as part of the development of the FY 2020 Capital Improvement Program Budget. When the design work is completed, staff will return to Council for approval of a construction contract. Policy Implications Authorization of this project does not represent a change in existing policies. Environmental Review The design phase of the project does not require review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15061(b)(3) and 15262 because the design work will not result in a significant environmental impact and does not commit the City to constructing the project. The project will be reviewed consistent with CEQA prior to initiation of the construction phase of the project. The project is anticipated to be exempt under CEQA Guidelines Section 15301(b) and documentation will be completed separately by the City. Attachments: C19171565 Brown and Caldwell (Signed by B&C) CITY OF PALO ALTO CONTRACT NO. C19171565 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND BROWN AND CALDWELL FOR PROFESSIONAL SERVICES This Agreement is entered into on this 10th day of September, 2018, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and Brown and Caldwell a California corporation , located at 201 N. Civic Dr. Suite 300, Walnut Creek, CA 94596 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to upgrade its existing two-stage secondary treatment system at the Regional Water Quality Control Plant (“Project”) and desires to engage a consultant to provide design and engineering services as outlined in Exhibit “A” in connection with the Project (“Services”). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. Optional On-Call Provision (This provision only applies if checked and only applies to on- call agreements.) Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A- 1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. SECTION 2. TERM. DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 2 The term of this Agreement shall be from the date of its full execution through completion of the services in accordance with the Schedule of Performance attached at Exhibit “B” unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CONSULTANT shall not be responsible for delays caused by circumstances beyond its reasonable control, including, but not limited to (1) strikes, lockouts, work slowdowns or stoppages, or (2) acts of God. CONSULTANT shall not be liable for damages arising out of any such delay, nor shall the CONSULTANT be deemed to be in breach of this Agreement as a result thereof, provided that the CONSULTANT provides prompt notice to the CITY of the occurrence resulting in the delay and uses reasonable efforts to overcome the effects of such occurrence. 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 Two Million Six Hundred Fifty-Seven Thousand Five Hundred Ninety-Seven Dollars ($2,657,597). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event Additional Services are authorized, the total compensation for Basic Services, Additional Services and reimbursable expenses shall not exceed Two Million Nine Hundred Twenty-Three Thousand Three Hundred Fifty-seven Dollars ($2,923,357). 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. 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 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing rates (set forth in Exhibit “C- 1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 3 SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. CONSULTANT shall submit estimates of probable construction costs at the 30% design effort, followed by a much tighter cost estimate at the 90% design submittal, followed by the final cost estimate when the 100% (final) design is submitted. If the total estimated construction cost at the 90% or 100% design level exceeds ten percent (10%) of CITY’s stated construction budget, CONSULTANT shall make recommendations to CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY to the extent consistent with the PROJECT requirements and sound engineering practices. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 4 SECTION 12. SUBCONTRACTING. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. Option B: Subcontracts Authorized: Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The subconsultants authorized by CITY to perform work on this Project are: Cal Engineering & Geology, Inc., R.E.Y. Engineers, Saylor Consulting, Inc., Corrosion Probe, Inc., Scheidegger & Associates, Voss Laboratories, Inc., HKIT Architects CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Mike Walkowiak as the Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and Jeff Kivett as the project Principal-in-Charge to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s project manager. CONSULTANT, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. CITY’s project manager is Tom Kapushinski, Public Works Department, Environmental Services Division, RWQCP, Palo Alto, CA 94303, Telephone: 650-617-3130. The project manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 5 contemplated by the scope of work. CITY’s alteration of CONSULTANT’s work product or its use by CITY for any other purpose shall be at CITY’s sole risk, and without liability to CONSULTANT. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 6 full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 7 materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 19.4, 20, and 25. 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 8 SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements: (a) All printed materials provided by CCONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. SECTION 25. NON-APPROPRIATION 25.1. This Agreement is subject to the fiscal provisions of the Charter of the DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 9 City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS 26.1 This Project is not subject to prevailing wages. CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. OR 26.1 CONSULTANT is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the Purchasing Division’s office of the City of Palo Alto. CONSULTANT shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages. 26.2 CONSULTANT shall comply with the requirements of Exhibit “E” for any contract for public works construction, alteration, demolition, repair or maintenance. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 10 of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 27.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 27.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 All unchecked boxes do not apply to this agreement. 27.11 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 27.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 11 CONTRACT No. C19171565 SIGNATURE PAGE 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 City Manager or Designee APPROVED AS TO FORM: City Attorney or designee BROWN AND CALDWELL Officer 1 By: Name: Title: Officer 2 (Required for Corp. or LLC) By: Name: Title: Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Vice President Jeff Kivett Vice President Grace Chow Professional Services Rev. April 27, 2016 12 EXHIBIT “A” SCOPE OF SERVICES Palo Alto Regional Water Quality Control Plant Design Services for Secondary Treatment Process Upgrade I. INTRODUCTION The City of Palo Alto Department of Public Works (City) intends to upgrade its existing two-stage secondary treatment system at the Regional Water Quality Control Plant (RWQCP, or the Plant), which consists of fixed film reactors (FFRs) followed by activated sludge aeration basins. The upgrade will be to a biological nutrient removal (BNR) process. A preliminary assessment of the secondary treatment process was conducted by a consultant that evaluated several process alternatives. The study concluded that the Modified Ludzack-Ettinger (MLE) process might be the best overall alternative from an operations standpoint, ease of implementation in the existing infrastructure, as well as being the most cost effective option. The City strongly encourages designs for innovative BNR treatment options to MLE (e.g., step feed). The Consultant should provide details and justification for alternatives to the default option of MLE. A life cycle cost analysis will be required before choosing an option other than MLE. The City values cost efficiency, energy efficiency, effective and sustainable O&M, technologies resilient for future regulatory changes, and reasonable implementation (i.e., ease of constructability) that ensures the capability of meeting NPDES permit requirements during the entire construction phase, startup, and commissioning. This project will provide the City cost savings upon decommissioning the aging FFRs. It will provide O&M enhancements upon the upgrade of the entire secondary treatment process including ancillary systems. It will prepare the City for potential future regulatory changes. II. BACKGROUND The City owns and operates the RWQCP, which encompasses a 25-acre site within the Palo Alto Baylands located between Highway 101 and San Francisco Bay. The RWQCP receives and treats wastewater from Palo Alto, Mountain View, Los Altos, Stanford University, Los Altos Hills, and East Palo Alto Sanitary District. The service areas are a mix of institutional, residential, and commercial uses consisting of approximately 223,100 residents. The Plant has a design capacity of 39 mgd, average treated flow of 19 mgd, and a wet weather capacity of 80 mgd. Peak daily flow to the outfall during dry weather is 30 to 39 mgd and the morning low flow is typically about 5 to 10 mgd. Following headwork screening and primary treatment (via gravity sedimentation), secondary treatment of the influent wastewater is achieved via two (2) FFRs DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 13 (roughing filters for CBOD removal) followed by four (4) activated sludge aeration basins (suspended growth, complete nitrification). The FFRs were installed as part of the plant’s Advanced Wastewater Treatment process upgrade in 1980 to remove ammonia. The two FFRs contain 305,000 ft 3 total media volume. The aeration basins (240,000 ft3) were installed as part of the plant’s main structure in 1972. The original electric agitators were removed and replaced by a fine bubble aeration system in 1988 with ceramic dome diffusers. The aeration system blowers vary in style and age with the oldest blower installed in 1980. They consist of multi-stage centrifugal, positive displacement, and single-stage radial type with inlet guide vanes and variable diffusers. Over the years, the FFRs have sustained structural concrete and steel damage and are in need of repairs or retirement. MLSS piping and mixer platforms in the aeration basins are in need of re-coating or replacement. The MLSS piping header supports are not anchored very well. The aging blowers and fine bubble diffusers are in need of replacement. Several sluice gates cannot be operated and need to be replaced. Mud valves are in need of rehabilitation. Structural concrete damage (cracks and spalling) is visible at various locations across the aeration basins. The upgrade to the existing aeration basins to a BNR system is expected to improve the Plant’s process unit reliability, ensure that the Plant continues to meet effluent discharge permit limits, establish a path toward meeting potential future nutrient regulatory requirements, and allow for decommissioning of the aging FFR towers. III. SCOPE OF SERVICES The City intends to upgrade its existing secondary treatment process. Intentions are to upgrade to a Modified Ludzack-Ettinger (MLE) activated sludge process, however alternatives to MLE are encouraged (e.g., step feed). Alternatives already screened in the tech memo should not be recommended (e.g., IFAS, membrane bioreactors, and traditional rehab of the two stage FFRs and activated sludge system). The Consultant (also referred herein as the “Engineer”) shall provide engineering services during all phases of the project from preliminary design, design, bid period services, engineering services during construction, and support during commissioning and start-up. Services shall include but are not limited to: Confirmation or update of flow and load projections through 2054, based on projections provided by the City. Evaluation of hydraulic improvements for potential decommissioning of the Intermediate Pump Station (IPS). Development of the plant’s hydraulic grade line for daily flow conditions and peak flow conditions with necessary capital equipment to ensure grade line can be met. Review and update the hydraulic profile of the entire RWQCP. DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 14 Assessment of existing blowers to assess remaining life and capacity Comparative evaluation of different types of baffle walls. Comparative evaluation of different types of blowers, air diffusers, and mixer options. Type of carbon addition options and planning for future carbon addition should it be required. Coring and non-destructive testing techniques of the concrete in the existing aeration basins. Recommendations for repair and rehabilitation of the concrete and structural elements. Upgrade the existing aeration basins to accommodate an MLE or alternative process including but not limited to replacement of the aeration system and installation of new mixers, baffles, recirculation system, DO monitors, and instrumentation and controls. Evaluation of options for phosphorus removal solutions should phosphorus regulations be implemented. Evaluation of operational improvements needed for peak wet weather flows. Replacing or upgrading associated mechanical components including but not limited to blowers, piping, mud valves, influent and effluent flow control, and miscellaneous valves and gates. Replacing or upgrading associated electrical components including but not limited to the MCC and VFDs. Develop specifications and the scope of FFR decommissioning for use by City staff. Development of a phasing plan for upgrades associated with schedule of increasing flows and loads, and target dates for nutrient requirements. Development of control strategies. Development of construction sequencing requirements. Update of Standard Operating Procedures (SOPs) for the O&M Manual for the new process. Technical support of regulatory and financial coordination, as required (e.g., technical documents related to BNR efficiency to establish early action credit for Palo Alto with future RWQCB nutrient watershed permits, SRF loan application and / or WIFIA application, energy efficiency alternative funding applications, CEQA+ documents, etc.). Evaluation of new WAS and RAS loads and adequacy of existing pump systems. Determination, through BioWin modeling, if the secondary clarifiers will be overloaded due to the changes associated with process upgrade and recommendations for potential improvements, if any, to improve performance of the four (4) square clarifiers. The potential effects on the process from digester return flows, should digesters be added at some point in the future. Wastewater characterization and field testing – development and execution of a sampling plan, and analysis / evaluation of the data. DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 15 Preparation of documents for compliance with CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND CLEAN WATER STATE REVOLVONG FUND (SRF) At this time, the City anticipates that the project will be categorically exempt (Cat Ex) under CEQA Guidelines Section 15301(b), Existing Services, as it involves the repair of an existing publicly-owned utility used to provide sewerage services. Moreover, the construction work planned for this project is within the RWQCP fence line and is anticipated to have no significant environmental impacts to habitat or the public. However, in the event that the City determines that an Initial Study (IS) is necessary to evaluate any possible significant impacts, the Consultant shall prepare the Initial Study and related CEQA documents, if authorized by the City. The City will be the lead agency for completing the CEQA process before or concurrent with the SRF application process. Consultant shall retain a subconsultant specializing in preparing CEQA + documentation, to prepare the Cat Ex or, if necessary, the IS, documents and perform the CEQA related tasks under this provision. The documents prepared shall meet the CEQA + requirements of the State Water Resources Control Board (SWRCB) CA Clean Water State Revolving Fund (CCWSRF) or (SRF) Program. For the construction phase of this project, the City intends to seek financing through the State Water Resources Control Board (SWRCB) CA Clean Water State Revolving Fund (CCWSRF) or (SRF) Program. In the case of SRF application, the City will be the lead agency for planning and submitting the SRF application package -- which includes General, Financial Security, Technical and Environmental packages – to the SWRCB Division of Finance Assistance (DFA). If an SRF loan cannot be obtained, the City intends to finance the project through a revenue bond. DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 16 IV. PROJECT BASIS OF DESIGN The basis of design is to upgrade the existing two-stage secondary treatment system to a BNR process while including provisions for future expansion needs. The design of the secondary treatment upgrades should meet a target of 15 mg/L for total nitrogen under 2054 flow and load conditions. Designs that can exceed this limit for marginal additional cost are encouraged. Upgrades are envisioned to be phased to meet regulatory schedules as well as flow and load needs. Current and projected future flows and loads are presented in Table 1 below. Table 1. Flow and Load Projections Current (2012- 2017 Average) 2054 Projections (to be Provided by Consultant during Preliminary Design [Task 1]) Flows Per Capita ADWF, gpcd 18.6 ADWF, mgd 20.2 AAF, mgd 23.2 ADMMF, mgd 81 Loadings ADW BOD, ppd 49,869 ADW TSS, ppd 45,073 ADW NH3-N, ppd 6,043 MM BOD, ppd 55,666 MM TSS, ppd 51,755 MM NH3-N, ppd 6,527 Concentrations ADW BOD, mg/L 322 ADW TSS, mg/L 291 ADW NH3-N, mg/L 39.1 MM BOD, mg/L 288 MM TSS, mg/L 268 DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 17 MM NH3-N, mg/L 33.8 V. CONSULTANT SCOPE OF SERVICES (BASIC SERVICES) The Consultant’s scope of work shall include, but not be limited to, the tasks described in the following sections. All deliverables including drawings, graphics, schedules, reports and technical memoranda shall be provided in hard copy and in their original software version (Excel, Word, AutoCAD, PowerPoint, etc.) and PDF version (if requested by the City). The City will have ownership rights and rights to use any of the documentation developed under this Project. Task 1 – Preliminary Design Preliminary design activities will include the following: - Kickoff meeting and workshops with RWQCP staff to define the scope of condition assessment and discuss rehabilitation and improvement options. - Review available record drawings and documentation including plant’s maintenance records, Long Range Facility Plan (LRFP) and Facility Condition Assessment (FCA) Report’s recommendations for structural rehabilitation of aeration basins and ancillary systems. Assess and quantify needed repairs/rehabilitation. - Review LRFP and FCA structural rehabilitation recommendations for aeration basins. Assess and quantify needed repairs/rehabilitation. - Conduct visual assessments of all accessible areas - Conduct a comprehensive field assessment of the aeration basins and supporting structures/facilities including: o Mechanical equipment o Electrical equipment o Instrumentation and controls o Yard piping o All concrete and metal structures associated with: Aeration Basins Intermediate Pump Station (IPS) FFR - Perform a structural analysis of the pertinent secondary treatment structures to confirm structural integrity, and identify seismic retrofit options that would be needed. - Develop a sampling / analysis plan for wastewater characterization, execute the plan, and provide analysis and recommendations to further refine the design of the treatment process to meet the future targeted regulatory limitations. - Prepare a Preliminary Design Report which includes the following content, as a minimum: o Results of all field inspections, including estimates of quantities, types, and costs of rehabilitation and repairs. DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 18 o Evaluation of associated electrical and instrumentation systems and recommendations for improvements and integration of new equipment. o Recommendations for repair and rehabilitation of concrete and structural elements. o Update hydraulic profile for the entire plant for daily and peak flow conditions with and without any needed wet-weather flow pump station in operation. o Confirm population growth projections and update flow and load projections through 2054. o Recommendations to meet a potential nitrogen target of 15 mg/L. o Hydraulic analysis and evaluation of primary effluent to BNR process (i.e. upgrade existing IPS or alternative approach). o Evaluation and recommendation for baffles. o Evaluation and recommendations for blowers and air diffusers and other mechanical improvements. o Evaluation of supplemental carbon addition options. o Preliminary sequencing of improvements, bypasses, temporary shutdowns, and other temporary measures needed to keep the plant operational during the construction. o Identify and evaluate facilities / equipment / infrastructure that enhance operational flexibility. o Overall schedule and phasing approach and notation of any equipment that requires long lead times. o 30% drawings set. Deliverables: Kickoff Meeting Meeting Agenda Meeting Minutes (draft and final) Field Assessment Documentation Field Notes and Pictures 30% Design Review Workshop Meeting Agenda Slide Presentation Pre-Design Report Draft Preliminary Design Report with Recommendations – 4 hard copy sets, 1 electronic set in pdf format and 1 electronic set in MS Word Final Preliminary Design Report with Recommendations – 4 hard copy sets, 1 electronic set in pdf format and 1 electronic set in MS Word Preliminary Cost Estimate – OPCC accuracy range of +30% / -15% conforming to the AACE International’s standard for a Class 3 Estimate Preliminary Construction Schedule (presented in MS Project) Task 2 – Detailed Design Consultant shall develop Design Documents (including Plans, Specifications, DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 19 Schedule, and Costs) for a MLE activated sludge process and decommissioning of the FFRs. The design shall be based on the Preliminary Design Report and consultation with RWQCP staff. Consultant will develop 60%, 90%, and 100% design documents. Consultant shall conduct design review workshops with Plant staff at the 60% and 90% design stages to review progress, obtain input, and confirm decisions during the design development. All design shall go through the proper quality assurance and quality control reviews prior to issuing to the City for review. The design shall sequence construction such that plant performance and operations are maintained on a continuous basis except as allowed under special circumstances. A construction sequence shall be established in sufficient detail which meets the RWQCP’s ability to comply with NPDES discharge permit requirements. General Coordination - Consultant shall provide for overall coordination of engineering (including structural, mechanical, electrical, instrumentation and controls, etc.) and other disciplines required for the successful development of a consolidated set of detailed design documents that will result in final construction bid document. Site/Civil design - Survey and review the existing site conditions. There are multiple underground (UG) utilities such as pipes, electrical conduits, duct banks and structures at and in the proximity of the site. The site is in FEMA Base Flood Zone Elevation (10.5 feet NAVD 1988). Structural Design – Structural design shall be in accordance with all jurisdictional requirements including the California Building Code. Structural design shall include field verification and structural improvements and may include miscellaneous foundation, handrail, and platform rehabilitation of the aeration basins. Mechanical Design – Mechanical design shall include field verification, process schematics, design, layout of mechanical equipment and appurtenances, piping, and other related systems. Existing conditions shall be field verified where possible. Electrical Design – The electrical design shall include the determination of power requirements, cable and conduit sizing, controls, alarms, and area lighting. Existing conditions shall be field verified. The new electrical equipment shall be above the flood zone. Instrumentation and Control – Design shall be compatible with existing SCADA and PLC systems. Where appropriate, control shall utilize a local PLC with remote control parameters provided through the existing SCADA system. Automation of system control shall be used where most appropriate. Alarm and status shall be supplied to the SCADA system. Coordinate with City staff to identify standards that have been established or to modify the existing standards as necessary. California Environmental Quality Act (CEQA) and SRF Documentation - The City requires that Consultant retain a sub-consultant specializing in preparing CEQA documentation to prepare the CEQA Cat Ex documentation and perform related CEQA tasks. The documents prepared shall meet the CEQA + requirements of DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 20 the State Water Resources Control Board (SWRCB) CA Clean Water State Revolving Fund (CCWSRF) or (SRF) Program. In the event that the project requires an Initial Study (IS), the CEQA sub- consultant shall prepare the IS and Mitigated Negative Declaration (MND) unless the City determines other CEQA review is required. In addition, should the project funding source come from the SRF, a CEQA document will be required as part of the loan application package, which is to be developed by the CEQA sub-consultant, that meets the CEQA + requirements of the SRF Program. The CEQA subconsultant shall coordinate its activities with City’s CEQA review team within the Planning and Community Environment Department. Deliverables: Consultant shall submit the design deliverables in both electronic and hard copy formats. Specifications shall conform to CSI 2016 Master Format. 60% Design Deliverable – 4 hard copies plus electronic copy 60% Design documents (plans and specifications) Design Review Workshop (include Meeting Agenda & Slide Presentation) 90% Design Deliverable – 2 hard copies plus electronic copy 90% Design documents Design Review Workshop (include Meeting Agenda & Slide Presentation) Cost Estimate - OPCC accuracy range of +15% / -5% conforming to the AACE International’s standard for a Class 1 Estimate Updated Construction Schedule (presented in MS Project) Final Design Deliverable – 2 hard copies plus electronic copy Final specifications (electronic copies in PDF and MS Word formats) Final drawings (electronic copy in PDF AutoCAD formats) Final Cost Estimate - OPCC accuracy range of +10% / -5% conforming to the AACE International’s standard for a Class 1 Estimate Final Construction Schedule (presented in MS Project) Task 3 – Bid Period Services Services during Bidding will include the following: Consultant shall assist the City in preparation of construction bid packages. The City will assemble and issue the bid packages. The City has standard front-end specifications that will be issued as part of the construction bid package. Consultant will review the front-end specifications to ensure that there are no conflicts between the front-end specs and Detailed Design specs. Consultant shall provide responses to Request for Clarification (RFC) from prospective bidders. Consultant shall assist the City with preparation of Project addenda. Consultant shall attend and assist the City at the pre-bid conference and the walk through. DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 21 Consultant shall prepare conformed design package (drawings and specifications) incorporating information issued as addenda and Responses to RFC during the bid period. Deliverables: Response to Request for Clarifications on Bid Package Project Addenda Pre-Bid Conference (Agenda and materials, meeting minutes) Conformed specifications – 2 hard copies, 1 digital copy in PDF and 1 MS Word format Conformed drawings – 2 hard copies, 1 digital copy in PDF format, and 1 copy in AutoCAD format Task 4 – Engineering Services during Construction During construction phase, estimated to take up to 24 months, the Consultant shall provide the following services: Consultant will review submittals from the construction contractor for conformance with the construction contract documents. The Consultant shall review and return the submittal comments to the City within ten working calendar days. Consultant will prepare written response to the Request for Information (RFI) submitted by the contractor. The Consultant shall review, comment, and return the RFI responses within seven (7) calendar days. Consultant will review and validate the Contract Change Order requests submitted by the contractor for accuracy and correctness, as requested by the City. As requested, the Consultant will attend the construction progress meetings with the Contractor during construction phase. Please allow one meeting per month during the construction phase. The Consultant shall provide the technical support to the City during testing of the new treatment process. The Consultant shall assist the City in monitoring, documenting and/or validating any testing required by the permitting agencies. Consultant will review the “as-built” or “red-line” drawings and documents maintained by the Contractor during construction. Upon construction completion, the Consultant shall prepare record drawings. The record drawings shall consist of annotated contract drawings and electronic files showing changes in design and construction. Consultant shall update the City’s O&M manual to reflect the changes to the normal and abnormal modes of operations, equipment additions, process control descriptions, etc. Deliverables: Submittal review comments RFI responses Contract change order review comments, as needed DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 22 Record drawings – 1 hard copy (full size and half-size), 1 digital copy in PDF format, 1 copy in AutoCAD format Updated O&M Manual for upgraded facilities - 1 hard copy (full size and half-size), 1 digital copy in PDF format. Assist in updating the RWQCP Intranet O&M Manual to reflect the changes to the upgraded process. Task 5 – Project Management Consultant will provide a competent project manager to supervise and provide direction to each design team members including sub-consultants. Consultant will provide necessary administration, project controls, quality assurance and professional oversight of the project. At the initiation of the Project, Consultant will meet with the City Project Manager to coordinate work. Project staffing will be maintained at acceptable levels to keep the project on schedule, ensure continuity of information, and satisfy the requirements of the CONTRACT. At the minimum, Consultant shall deliver the following to the City Project Manager. Prepare a baseline project schedule with milestones, and update monthly Conduct monthly progress meetings with the City Project Manager Monitor project budget for effort versus progress and keep City Project Manager informed of the status. Identify and mitigate potential overruns in a timely manner. Submit monthly invoices, including monthly Progress Reports for payment. Task 6 – Wastewater Characterization Consultant will develop a test plan and coordinate with the City to conduct 10- days of wastewater characterization sampling. Sampling results will be used to determine the composition of the influent COD (e.g., soluble or particulate, biodegradable or unbiodegradable fractions) and incorporated into the BioWin simulator model to help determine design aeration demands, mixed liquor suspended solids (MLSS) concentrations, supplemental carbon dosages for nutrient reduction (if required), and final effluent quality. This task includes: Sampling, 10-days of daily composite and grab samples. Consultant will use results from the previous diurnal sampling event to determine diurnal variations in loading. The City’s influent composite sampler will be used to collect influent samples. Since the City’s primary effluent sampler is not flow-weighted, Consultant will include a rented sampler with 12 bottles for primary effluent, so that a flow-weighted daily sample can be manually composited. Other samples will be grab samples. Consultant to provide a test plan and a brief technical memorandum summarizing the sample locations and coordination issues. A pre- sampling meeting is required to discuss the draft test plan and finalize it with the City’s input. Consultant staff will meet with City Lab staff to review DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 23 sampling locations, bench space, and coordination with laboratory activities. Consultant will provide two (2) staff on the first day, but only one (1) Consultant staff will be present on each of the subsequent nine days to grab samples, conduct filtrations, and prepare samples for pick-up by the contract lab. Consultant will provide filtration equipment. During each day, one RWQCP staff member will be available to assist Consultant staff in sample collection, filtration, and preparation of samples by the contract lab. Consultant will contract with a contract lab (Caltest) for the sample analyses. Consultant will coordinate with Caltest for sample logistics and sample bottles. Table 2 shows the list of samples and type of analyses that are to be included in the sampling / analyses plan. City will provide bench space with power and a sink for Consultant staff use during the sampling event. City will provide the characterization data to Consultant in Excel format. City will also provide hourly flow rates and pH and temperature data during the sampling period. Results of the sampling / analyses will be incorporated into the Preliminary Design Report. Table 2 Summary of Wastewater Characterization Sampling Sample Analytical Method Composite Samples Grab Samples[e] Raw Influent Primary Effluent Primary Effluent Grab Sample Thickener Overflow Scrubber Drainage and Belt Press Filtrate Unfiltered COD SM 5220 B., C., or D. 10 10 7 7 7 BOD SM 5210 B. 10 10 --- 7 7 TSS SM 2540 D. 10 10 --- 7 7 VSS SM 2540 E. 10 10 --- 7 7 TKN SM 4500-Norg B. or C. 10 10 --- 7 7 TP SM 4500-P B./C. 10 10 --- 7 7 Alkalinity SM 2320 B 10 10 --- 7 7 Filtered [b] sCOD SM 5220 B., C., or D. 10 10 7 7 7 sBOD SM 5210 B. 10 10 --- --- --- sTKN SM 4500-Norg B. or C. 10 --- --- --- --- sTP SM 4500-P B./C. 10 --- --- --- --- Filtered [c] NH3 SM 4500-NH3 C. 10 10 --- 7 7 OP SM 4500-P C. 10 10 --- --- --- DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 24 Flocculated/Filtered [d] ffCOD SM 5220 B., C., or D. 10 10 7 7 7 Volatile Fatty Acids VFAs (low concentration) --- --- --- 7 --- --- Notes: [a] – Sampling should be performed during normal plant operation that represents typical operation. Samples shown as 10 are collected once per day for 10 days (including weekends). Samples shown as 7 are collected every day for the first 7 days. [b] - Filtered through 1.2 to 1.5 micron glass fiber filter (the same as those typically used to measure plant TSS/VSS). Filtratio n should occur immediately after collection. [c] - Filtered through 0.45 micron Millipore filter. Filtration should occur immediately after collection. Prior to filtration, filters should be triple rinsed with DI water. [d] - Sample preparation per Mamais, D; Jenkins, D; and Pitt, P. "A Rapid Physical-Chemical Method for the Determination of Readily Biodegradable Soluble COD in Municipal Wastewater", Water Research, 27(1), pp. 195 - 197, 1993. [e] – note time of sample collection and flow at time of sample collection VI. TIME OF COMPLETION The project is budgeted for an estimated start date in Q3 2018, with a design duration timeline of 18 months. The Consultant shall propose a timeline for completing this work in their proposal considering completion of the final design. It should be noted that should the construction funding be delayed from the funding sources, the construction of the project could be delayed or temporarily halted, affecting the engineering services during construction timetable. END OF SCOPE OF SERVICES DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 25 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (NTP). Milestones Completion No. of Days/Weeks From NTP 1. Design Kick-Off Meeting 02 2. Submit Draft PDR 38 3. Submit 60% Design 70 4. Submit 100% Design (Bid Documents) 86 5. Services During Bidding 98 6. Services During Construction 210 DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 26 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 base d 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 - (Preliminary Design) $793,816 Task 2 - (Final Design) $1,059,642 Task 3 - (Bid Period Services) $52,125 Task 4 - (Eng. Services during Construction) $551,227 Task 5 - (Project Management) $132,709 Task 6 - (Wastewater Characterization) $53,211 Sub-Total Basic Services: $2,464,730 Reimbursable Expenses: $14,867 Total Basic Services & Reimbursable Expenses: $2,657,597 Additional Services (Not to Exceed): $265,760 Maximum Total Compensation: $2,923,357 DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 27 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 $1,000.00 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: Should an Environmental Impact Report (EIR) be required, the additional services fund may be considered for use on this task, depending upon the estimated cost to perform this service. DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 28 EXHIBIT “C-1” SCHEDULE OF RATES Brown and Caldwell Schedule of Hourly Billing Rates Proposal: Design Services for Secondary Treatment Upgrades (CIP Number WQ-19001) (Effective May 15th through December 31st, 2018 Level Engineering Technical/Scientific Administrative Hourly Rate A Office/Support Services I $73 Word Processor I B Drafter Trainee Field Service Technician I Office/Support Services II $76 Word Processor II C Assistant Drafter Field Service Technician II Office/Support Services III $89 Drafter Accountant I Engineering Aide Word Processor III D Inspection Aide Field Service Technician III Office/Support Services IV $92 Engineer I Geologist/Hydrogeologist I Senior Drafter Scientist I Senior Illustrator Senior Field Service Accountant II E Inspector I Technician Word Processor IV $99 Engineer II Accountant III Inspector II Area Business Operations Mgr Lead Drafter Geologist/Hydrogeologist II Technical Writer F Lead Illustrator Scientist II Word Processing Supervisor $121 Engineer III Inspector III Senior Designer Supervising Drafter Geologist/Hydrogeologist III Accountant IV G Supervising Illustrator Scientist III Administrative Manager $141 Senior Engineer Principal Designer Senior Senior Construction Engineer Geologist/Hydrogeologist H Senior Engineer Senior Scientist Senior Technical Writer $162 Principal Engineer Principal Principal Construction Engineer Geologist/Hydrogeologist I Supervising Designer Principal Scientist Corp.Contract Administrator $200 Supervising Engineer Supervising Scientist Supervising Constr. Engineer Supervising Geologist/ J Supervising Engineer Hydrogeologist Assistant Controller $230 Managing Geologist/Hydrogeologist K Managing Engineer Managing Scientist Area Bus Ops Mgr IV $271 Chief Engineer Chief Scientist L Executive Engineer Chief Geologist/Hydrogeologist Corp Marketing Comm. Mgr. $291 M Vice President $291 DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 29 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR CONSULTANT TO PROVIDE A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E Professional Services Rev. April 27, 2016 30 LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON- PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: AEA107C1-C396-413D-9B9C-14FCAF671F1E City of Palo Alto (ID # 9513) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/1/2018 City of Palo Alto Page 1 Summary Title: WSCA Verizon Wireless Amendment Title: Approval of Contract Amendment Number 2 With Verizon Wireless Through June 30, 2019, Utilizing the Western State Contracting Alliance (WSCA) Contract, California Participating Addendum, for Wireless, V oice and Broadband Services, Accessories and Equipment From: City Manager Lead Department: IT Department Recommendation Staff recommends that Council approve and authorize the City Manager or his designee to enter into a contract renewal with Verizon Wireless for wireless, voice, and broadband services, accessories and equipment, through June 30, 2019, utilizing the Western States Contracting Alliance (“WSCA”) Master Service Agreement with Verizon Wireless–, State of California Participating Addendum No. 7-11-70-16 (WSCA No.1907)., Executive Summary The Western States Contracting Alliance (“WSCA”) is a cooperative group-contracting consortium for state government departments, institutions, agencies and political subdivisions (i.e., colleges, school districts, counties, cities, etc.,) for the states of Alaska, Arizona, California, Colorado, Hawaii, Idaho, Minnesota, Montana, Nevada, New Mexico, Oregon, South Dakota, Utah, Washington and Wyoming. This is a contract between the Western States Contracting Alliance (now known as NASPO ValuePoint), acting by and through the State of Nevada Department of Administration, Purchasing Division. The State of Nevada has been authorized by WSCA to negotiate a Master Agreement as a lead state, for and on behalf of WSCA and its members. The contract allows the City to utilize Verizon Wireless, T-Mobile, AT&T and/or Sprint networks. Background The City has over 500 devices which consist of cell phones, wireless devices and equipment with an annual spend of roughly $300,000 per year. By using the WSCA contract the City can utilize the significant cost savings that this contract sets forth. The WSCA contract, State of California Participating Addendum, has been renewed through June 30, 2019 (Attachment A: Amendment #2 WSCA Verizon Wireless). Council City of Palo Alto Page 2 previously approved using this cooperative contract through October 31, 2018 (CMR #3999, September 9, 2013). The City currently has an account with Verizon Wireless with the IT department as the master account. Several sub-accounts have been created under the master account for each City department. Each City department is responsible for payment of their respective accounts each month. The City would like to continue using the WSCA contract for all mobile needs. Discussion By utilizing the WSCA wireless contract, the City can receive more aggressive cellular rate plans and significant hardware cost savings (Attachment B: Current NASPO-WSCA Verizon Pricing). In addition to cellular services and equipment, the City will also be utilizing the contract pricing to purchase tablet devices, equipment and accessories. By utilizing this contract, it also allows IT to keep up with City department demand for mobile computing and to lead the way in supporting a more mobile workforce. Resource Impact Funds for these services are provided from departmental operating budgets. Environmental Review Approval of this contract does not constitute a project under the California Environmental Quality Act (CEQA); therefore, no Environmental Assessment is required. Attachments: • Attachment A: Amendment #2 WSCA Verizon Wireless • Attachment B: Current NASPO-WSCA Verizon Pricing For Purchasing Use Only: RFP/CONTRACT # 1907 AMENDMENT #2 TO CONTRACT Between the State of Nevada Acting By and Through Its Various State Agencies Monitored By: Department of Administration Purchasing Division 515 East Musser Street, Suite 300 Carson City, NV 89701 Contact: Teri Becker Phone: (775) 684-0178 Fax: (775) 684-0188 Email: tbecker@admin.nv.gov and Cellco Partnership d/b/a/ Verizon Wireless One Verizon Way Basking Ridge, NJ 07920 Contact: RJ Fenolio Phone: (702) 283-2200 Fax: (866) 917-7801 Email: RJ.Fenolio@VerizonWireless.com 1. AMENDMENTS. For and in consideration of mutual promises and/or their valuable considerations, all provisions of the contract between the above -referenced parties resulting from Request for Proposal #1907 and dated April 16, 2012 (the "Contract"), remain in full force and effect with the exception of the following: A. The Contract term shall be extended from October 31, 2016 to June 30, 2019 to coincide with filing requirements by Federal E -Rate customers. INC ORPORA1ED DOCUMENTS The Contract is incorporated herein by reference. 3. REQUIRED APPROVAL. This amendment to the original contract shall not become effective until and unless approved by the WSCA-NASPO Directors. IN WITNESS WHE OF, the parties hereto have caused this amendment to the original contract to be signed and intend to e lega thereby. Independ Signature /-A• Gre Smith, Adminis Approved as to form by: odd Loccisano of Nevada Executive Director Enterprise & Government Contracts Independent's Contractor's Title On 9 APPROVED BY WSCA-NASPO Directors On (Date) On '2 7 Deputy Attorney General for Attorney General _tDate) Amendment 2 Page 1 of 1 Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 1 of 41 Verizon Wireless Pricing Sheet NASPO ValuePoint or NVLPT (f/k/a WSCA) Contract for Services #1907 22% NVLPT Discount Offer WIRELESS VOICE CALLING PLANS NVLPT Nationwide for Government Share Calling Plans The calling plans below reflect the monthly access fee discount. No additional discounts apply. NVLPT Nationwide for Government Account Share 0 Minutes 100 Minutes 200 Minutes Monthly Access Fee $15.991 (86137) $23.98 (80006) $27.29 (73736) NVLPT Nationwide for Government EVP (Profile) Share 0 Minutes 100 Minutes 200 Minutes Monthly Access Fee $15.991 (86136) $23.98 (80010) $27.29 (73575) Monthly Anytime Voice Minutes 0 100 200 Domestic Voice Overage Rate $0.25 per minute Domestic Mobile to Mobile Unlimited Domestic Night & Weekend Minutes Unlimited Domestic Long Distance Included Data Sent or Received $1.99/ MB or per data package2 Domestic Text, Picture and Video Messages 100 Included (76678) Overage per message: Incoming Text $0.02/ Outgoing Text $0.10 / Pic & Video $0.25 Optional Features Domestic Text, Picture and Video Messages Unlimited (75439) $12.00 per line Domestic Push To Talk Plus Not Available $2.00 (Basic phone- 83270) Notes Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. 1The $15.99 zero access plan can only be 50% of an accounts total share lines. 2Smartphones and Data Multimedia Phones require a data package. 4G service requires 4G Equipment and 4G coverage. Account Share Voice Sharing: At the end of each bill cycle, any unused voice allowances for lines sharing on the same account will be applied to the overages of the other lines on the same account beginning with the line with the highest overage need. EVP (Profile) Share - Voice Sharing (Domestic Only): At the end of each bill cycle, any unused voice allowances for lines sharing across multiple accounts will be applied proportionally to all lines with overages. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 2 of 41 NVLPT Nationwide for Government Calling Plans The calling plans below reflect the monthly access fee discount. No additional discounts apply. NVLPT Nationwide for Government 400 Voice Minutes 600 Voice Minutes 1000 Voice Minutes Monthly Access Fee (non-share) $35.88 (74538) $52.56 (74540) $67.94 (74542) Monthly Access Fee less discount (non-share) $27.98 $40.99 $52.99 Monthly Access Fee (share) $38.45 (74539, 76363) $55.12 (74541, 76364) $70.50 (74543, 76365) Monthly Access Fee less discount (share) $29.99 $42.99 $54.99 Monthly Anytime Voice Minutes 400 600 1000 Friends & Family (up to 10 numbers per account) Not Included Included1 Voice Overage Rate $0.25 per minute Domestic Mobile to Mobile Unlimited Domestic Night & Weekend Minutes Unlimited Domestic Long Distance Included Data Sent or Received $1.99/ MB or per data package2 Domestic Text, Picture and Video Messages 100 Included (76678) Overage per message: Incoming Text $0.02/ Outgoing Text $0.10 / Pic & Video $0.25 Optional Features Domestic Text, Picture and Video Messages Unlimited (75439) $12.00 per line Domestic Push To Talk Plus $2.00 (Basic phone- 83270) Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. 1Friends & Family eligibility varies on selected calling plan. 2Smartphones and Data Multimedia Phones require a data package. 4G service requires 4G Equipment and 4G coverage. Account Share Voice Sharing: At the end of each bill cycle, any unused voice allowances for lines sharing on the same account will be applied to the overages of the other lines on the same account beginning with the line with the highest overage need. NVLPT Nationwide for Business Calling Plans The calling plans below reflect the monthly access fee discount. No additional discounts apply. Nationwide for Business 450 Voice Minutes 900 Voice Minutes Unlimited Voice Minutes Monthly Access Fee (Talk) $39.99 (73713) $59.99 (73714) $69.99 (83233) Monthly Access Fee less discount (Talk) $31.19 $46.79 $54.59 Monthly Access Fee (Talk & Text) $59.99 (73761) $79.99 (73762) $89.99 (83234) Monthly Access Fee less discount (Talk & Text) $46.79 $62.39 $70.19 Domestic Anytime Voice Minutes 450 900 Unlimited Friends & Family (up to 10 numbers per account) Included with share plan only Included1 Voice Overage Rate $0.25 per minute National Mobile to Mobile Unlimited Domestic Night & Weekend Minutes Unlimited Domestic Long Distance Included Data Sent or Received $1.99/ MB or per data package2 Domestic Text, Picture and Video Messages 100 Included (76678) Overage per message: Incoming Text $0.02/ Outgoing Text $0.10 / Pic & Video $0.25 Optional Features Domestic Text, Picture and Video Messages Unlimited (75439) $12.00 per line Domestic Push To Talk Plus $2.00 (Basic phone- 83270) Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. 1Friends & Family eligibility varies on selected calling plan. 2Smartphones and Data Multimedia Phones require a data package. 4G service requires 4G Equipment and 4G coverage. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 3 of 41 WIRELESS VOICE & DATA PLANS Unlimited Plan for Smartphones - Government Government Subscribers Only This plan is not eligible for monthly access fee discounts. Monthly Access Fee $70.00 (99719) Monthly Anytime Minutes – Domestic, Canada and Mexico Unlimited Domestic Data and Messaging Allowance* Unlimited Canada & Mexico Data and Messaging Allowance** Unlimited Mobile Hotspot^ Included Domestic, Canada and Mexico Long Distance Toll Free^^ Included International Messaging Allowance^^^ Unlimited Notes: Coverage area includes the Verizon Wireless 4G network; and the 3G and Extended partner networks, while available. Data speeds are not guaranteed while on Extended or roaming partner networks. Only a 4G LTE GSM/UMTS global-capable smartphone can be activated on this plan. No domestic roaming or long distance charges. *After 25 GB of data usage on a line during any billing cycle usage may be prioritized behind other customers in the event of network congestion. To ensure users are able to maximize their high-speed data use for business applications, video applications will stream at up to 480p. **For data usage in Canada and Mexico, after the first 512 MB of usage in a day, throughput speeds will be reduced for the remainder of the day. ^Mobile Hotspot is available on all capable devices and allows the line to share data allowance with multiple Wi-Fi enabled devices. If 15 GB of Mobile Hotspot data usage is exceeded on any line in any given billing cycle, Verizon Wireless will limit the data throughput speeds for additional usage for the remainder of the then-current billing cycle for the line that exceeds the data usage. ^^Toll free calling from the US to Canada and Mexico, from Mexico to the US and Canada, and from Canada to the US and Mexico. ^^^Unlimited Messaging from within the United States to anywhere in the world where messaging services are available. For other messaging rates go to www.verizonwireless.com. Custom 4G Verizon Unlimited Smartphone Plan for Public Sector Government Subscribers Only The calling plan below reflects the monthly access fee discount. No additional discounts apply. Only 4G LTE GSM/UMTS global-capable smartphones can be activated on this plan. Monthly Access Fee $65.00 (13656) Monthly Access Fee (Discount Applied) $50.70 Monthly Minutes in U.S Unlimited Domestic Data Allowance Unlimited(1) Domestic Mobile Hotspot Unlimited(2) Domestic and International Messaging Allowance Unlimited(3) Notes: Current coverage details can be found at www.verizonwireless.com. No domestic roaming or long distance charges. Coverage includes the Verizon Wireless 4G network; and the 3G and 3G Extended networks, while available. (1) In the event of network congestion, after 10GB of data usage on a line during any billing cycle, usage on such line may result in slightly slower download speeds relative to another user. To ensure users are able to maximize their high-speed data use for business applications, video applications will stream at 480p. (2) Mobile Hotspot is available on all capable devices and allows Corporate Subscribers to use their device and share data allowance with multiple Wi-Fi enabled devices. If 10GB of Mobile Hotspot data usage is exceeded on any line in any given billing cycle, Verizon Wireless will limit the data throughput speeds for additional usage for the remainder of the then-current billing cycle for the line that exceeds the data usage. (3) Unlimited Messaging from within the United States to anywhere in the world where messaging services are available. For other messaging rates go to www.verizonwireless.com. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 4 of 41 The New Verizon Plan - Talk, Text and Data: Government Subscribers (Up to 10 Phone/Internet Devices/20 Connected Devices) Select Device Type Smartphones Purchased at Discounted Price (Matrix) (SFO 84014) Smartphones Purchased at Full Retail Price or Customer Provided Equipment (SFO 84015**) Basic Phones (SFO 84016) 4G LTE Routers - with voice only(SFO 84019) or Voice and Data (SFO 84020) 4G LTE Broadband Router- Data Only (SFO 84018) Jetpacks/Netbooks/ /Notebooks/ USBs (SFO 84022, 84023, 84024) and Tablets (including Google Chromebook) (SFO 84021) / 4G LTE Internet device (Installed)1 (SFO 84025) Wireless Home Phone2 (SFO 84017) Select Connected Devices3 (SFO 84026, 84027, 84028) Monthly Line Access Fee $40.00 per device $20.00 per device $20.00 per device $20.00 per device $10.00 per device $10.00 per device $20.00 per device $5.00 per device Select Data Amount (Talk and Text are Unlimited) The calling plans below reflect the monthly access fee discount. No additional discounts apply. Monthly Account Access Fee Maximum Number of Lines (per billing account) Shared Data Allowance Domestic Data Overage Safety Mode6 (682) Safety Mode6 (672) Carryover Data (671) Data Boost7 (681) $35.004 $27.30 (96325) Up to 10 Phone/ Internet devices Up to 20 Connected Devices 2 GB (Small) $15.00 per 1 GB $5.00 N/A Included $15.00 for 1 GB (optional) $50.00 $39.00 (96327) 4 GB (Medium) $5.00 N/A $70.00 $54.60 (96328) 8 GB (Large) $5.00 N/A $90.005 $70.20 (96329) 16 GB (XLarge) N/A Included $110.005 $85.80 (96331) 24 GB (XX Large) N/A Included $135.005 $105.30 (96333) 30 GB N/A Included $180.005 $140.40 (963334) 40 GB N/A Included $225.005 $175.50 (96335) 50 GB N/A Included $270.005 $210.60 (96337) 60 GB N/A Included $360.005 $280.80 (96339) 80 GB N/A Included $450.005 $351.00 (96340) 100 GB N/A Included General Allowance Minutes Unlimited Domestic Long Distance Included BlackBerry Enterprise Server $15.00 per line (77515) Cloud Storage 5 GB per line Unlimited Domestic Text and Multimedia Messages and International Text Messages Included Domestic Mobile Hotspot Included Notes: Data-only devices on these plans share in the data allowance but do not share the minutes or message allowance unless the device is capable. 1LTE Internet (Installed) require the new Verizon Plans 8 GB or higher.2Wireless Home Phone shares in the unlimited voice minutes but not the message or data allowance. 3Only approved connected devices are eligible. 4No additional discounts apply. 5All Talk, Text and Data allowances on the new Verizon Plan XL or higher plans include Mexico and Canada and unlimited calling from the US to Mexico and Canada at no additional charge. TravelPass (including Canada and Mexico) may be added on the new Verizon Plan XL or higher plans for access to additional countries. 6Safety Mode speeds do not impact the quality of HD calls; however, the speeds will impact HD video calling experience. While in Safety Mode customer can return to full 4G LTE speed by purchasing Data Boost or switching to a plan with a higher data allowance. 7Data Boost allows additional 4G LTE data to be purchased when needed. Accounts with Data only devices must use the data only plans. Current coverage details can be found at www.verizonwireless.com. Access fee discounts applied at the account level only. Text Messages originating from Mexico are $0.50 per message sent (per recipient) and $0.05 per message received on the 2GB, 4GB, and 8 GB plans. Data allowances from new Verizon Plans with not share with any other Verizon Plans. The new Verizon Plan is not compatible with Private Network Traffic Management. Sharing: Sharing is available only among Government Subscribers on Verizon Plans – Talk Text and Data for up to 10 lines on the same account. **The $40.00 monthly line access for Smartphones will automatically change to $20.00 monthly line access once the line term is fulfilled. Proration may occur. Promotions may be available for Monthly Line and Account Access Fees. Please contact your Government Account Manager. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 5 of 41 The New Verizon Plan for Business Plan - Talk, Text and Data Plans: Government Subscribers (Up to 25 Phone/Internet Devices/50 Connected Devices) Select Device Type Smartphones Purchased at Discounted Price (Matrix) (SFO 84040) Smartphones Purchased at Full Retail Price or Customer Provided Equipment (SFO 84041**) Basic Phones (SFO 84042) 4G LTE Routers - with voice only(SFO 84044) or 4G LTE Routers (with voice and data bundle) (SFO 84045) 4G LTE Routers (data only) (SFO 84018) Jetpacks(SFO 84022)/ Netbooks/ Notebooks(SFO 84024)USBs(SFO 84023) Tablets (including Google Chromebook) (SFO 84021) Wireless Home Phone1(SFO 84043) Select Connected Devices2 (SFO 84026, 84027, 84028) Monthly Line Access Fee $35.00 per device $15.00 per device $15.00 per device $15.00 per device $10.00 per device $10.00 per device $15.00 per device $5.00 per device Select Data Amount (Talk and Text are Unlimited) The calling plans below reflect the monthly access fee discount. No additional discounts apply. Monthly Account Access Maximum Number of Lines (per billing account) Shared Data Allowance Domestic Data Overage Safety Mode3 (672) Carryover Data (671) Data Boost4 (681) $175.00 $136.50 (96345) Up to 25 Phone/ Internet devices Up to 50 Connected Devices 25 GB3 $15.00 per 1 GB Included Included $15.00 for 1 GB (optional) $245.00 $191.10 (96366) 35 GB3 $350.00 $273.00 (96368) 50 GB3 $500.00 $390.00 (96369) 85 GB3 $750.00 $585.00 (96370) 150 GB3 $1000.00 $780.00 (96371) 200 GB3 General Allowance Minutes Unlimited Domestic Long Distance Included BlackBerry Enterprise Server $15.00 per line (77515) Cloud Storage 5 GB per line Unlimited Domestic Text and Multimedia Messages and International Text Messages Included Domestic Mobile Hotspot Included Notes: Data-only devices on these plans share in the data allowance but do not share the minutes or message allowance unless the device is capable. 1Wireless Home Phone shares in the unlimited voice minutes but not the message or data allowance. 2Only approved connected devices are eligible. All Talk, Text and Data allowances on the new Verizon Plan for Business Plan include Mexico and Canada, and unlimited calling from the US to Mexico and Canada at no additional charge. TravelPass (including Canada and Mexico) may be added to the new Verizon Plan for Business plans for access to additional countries. 3Safety Mode speeds do not impact the quality of HD calls; however, the speeds will impact HD video calling experience. While in Safety Mode customer can return to full 4G LTE speed by purchasing Data Boost or switching to a plan with a higher data allowance. 4Data Boost allows additional 4G LTE data to be purchased when needed. Accounts with Data only devices must use the data only plans. Current coverage details can be found at www.verizonwireless.com. Access fee discounts applied at the account level only. Included Text Messages originating in the U.S. to Canada and Mexico. The new Verizon Plan is not compatible with Private Network Traffic Management. Sharing: Customers subscribing to Verizon Plan for Business will be billed on separate billing accounts and invoices. Sharing is available only among Government Subscribers on these Verizon Plan for Business – Talk Text and Data with 11 or more lines on the same account. **The $35.00 monthly line access for Smartphones will automatically change to $15.00 monthly line access once the line term is fulfilled. Proration may occur. Promotions may be available for Monthly Line and Account Access Fees. Please contact your Government Account Manager. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 6 of 41 The New Verizon Single Basic Phone Plan: Unlimited Talk and Text Only The calling plan below reflects the monthly access fee discount. No additional discounts apply. Basic Phones Only 3G or 4G LTE Basic Phone 4G LTE Basic Phone Only Monthly Device Access Fee $30.00 (98245) $50.00 $39.00 (98817) Domestic Anytime Voice Allowance Per Month Unlimited Voice Per Minute Rate (after allowance) N/A Domestic Data Allowance 500 MB 4 GB Data Overage $5.00 per 500 MB Domestic Long Distance Included Domestic Text Messages Unlimited Notes: Current coverage details can be found at www.verizonwireless.com. Not eligible for monthly access discounts. The new Verizon Basic Plan is not available for accounts with Smartphones data devices, or connected devices- Customers subscribing to the new Verizon Single Basic Plan and non- new Verizon Basic Plan will be billed on separate billing accounts and invoices. The New Verizon Single Basic Plan is a standalone plan. Nationwide Flat Rate Calling Plan The calling plan below reflects the monthly access fee discount. No additional discounts apply. Nationwide Flat Rate Government Subscribers Only Monthly Access Fee $11.99 (73809) Monthly Anytime Voice Minutes 0 Domestic Voice Per Minute Rate $0.25 Domestic Long Distance Included Data Sent or Received $1.99/ MB or per data package1 Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. 1Smartphones and Multimedia Phones require a data package. NVLPT Local Flat Rate Calling Plan The calling plan below reflects the monthly access fee discount. No additional discounts apply. NVLPT Local Flat Rate Calling Plan Government Subscribers Only Monthly Access Fee $8.99 (Market specific) Domestic Anytime Minutes 0 Per Minute Rate $0.10 Domestic Long Distance Included National Access Roaming $0.69 Domestic Data Sent or Received $1.99 / MB or per data package1 Optional Features 1000 Domestic Night & Weekend Minutes OR 1000 Nationwide Mobile to Mobile $5.00 additional monthly access fee per line (72062) Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. 13G/4G Smartphones and 3G/4G Multimedia Phones require a data package. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 7 of 41 Nationwide Push to Talk Plus Calling Plan (non-share) The calling plan below reflects the monthly access fee discount. No additional discounts apply. Nationwide Push to Talk Plus (non-share) Government Subscribers Only Monthly Access Fee $19.99 (94244/92857) Monthly Anytime Voice Minutes1 0 One to One & Group Talk Unlimited Data Sent or Received $1.99/ MB or per data package2 Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. Push to Talk Plus terms and conditions apply. 1Subscribers to the Push to Talk Plus Unlimited Calling Plan cannot place or receive regular cellular wireless calls other than to 611 and 911. (These calls may be placed anywhere in the Nationwide Rate and Coverage Area). If the voice block feature is removed, subscribers will be charged $0.25 per minute for non-Push to Talk Plus voice calls. 2Smartphones and Multimedia Phones require a data package. Nationwide Add-a-Line Voice Plan with Push to Talk Plus The calling plan below reflects the monthly access fee discount. No additional discounts apply. Nationwide Add-a-Line Voice Plan with Push to Talk Plus Government Subscribers Only Monthly Access Fee $18.991 (94990/92904) Monthly Anytime Voice Minutes 0 Minutes Minutes can share minutes from voice and/or voice & data bundle plans Push to Talk Plus Unlimited Domestic Voice Per Minute Rate $0.25 Domestic Night & Weekend Minutes Unlimited Domestic Nationwide Mobile to Mobile Unlimited Domestic Long Distance Included Domestic Roaming Rate per minute $0.25 Domestic Text (SMS) and Multimedia (MMS) Messages 100 Included Overage: $0.20 (SMS) Text, $0.25 (MMS) sent/received Data Sent or Received $1.99/ MB or per data package2 Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. Push to Talk Plus terms and conditions apply. 1No More than 50% of plans on a single account can be placed on the $18.99 Additional Line Voice & Push to Talk Plus plans 2Smartphones and Data Multimedia Phones require a data package. Account Share Voice Sharing: At the end of each bill cycle, any unused voice allowances for lines sharing on the same account will be applied to the overages of the other lines on the same account beginning with the line with the highest overage need. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 8 of 41 NVLPT 3G/4G Nationwide Email for Government Calling Plans The calling plans below reflect the monthly access fee discount. No additional discounts apply. NVLPT Nationwide for Government 400 Voice Minutes 600 Voice Minutes 1000 Voice Minutes Monthly Access Fee (non-share) $61.53 (74510) $78.19 (74512) $93.58 (74514) Monthly Access Fee less discount (non-share) $47.99 $60.99 $72.99 Monthly Access Fee (Account share) $64.09 (74511) $80.76 (74513) $96.16 (74515) Monthly Access Fee less discount (share) $49.99 $62.99 $75.00 Monthly Access Fee (EVP (Profile) share) $64.09 (76369) $80.76 (76370) $96.16 (76371) Monthly Access Fee less discount (EVP (Profile) share) $49.99 $62.99 $75.00 Monthly Anytime Voice Minutes 400 600 1000 Friends & Family (up to 10 numbers per account) Included Voice Overage Rate $0.25 per minute Domestic Mobile to Mobile Unlimited Domestic Night & Weekend Minutes Unlimited Domestic Long Distance Included Domestic Data Allowance Unlimited* Domestic Text (SMS) and Multimedia (MMS) Messages Unlimited Optional Features Domestic Push To Talk Plus $2.00 (Smartphone- (76785/81129/81174) Unlimited Hotspot/Tethering $10.00 per line (82219 3G) (76445 4G) Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. Account Share Voice Sharing: At the end of each bill cycle, any unused voice allowances for lines sharing on the same account will be applied to the overages of the other lines on the same account beginning with the line with the highest overage need. EVP (Profile) Share - Voice Sharing (Domestic Only): At the end of each bill cycle, any unused voice allowances for lines sharing across multiple accounts will be applied proportionally to all lines with overages. *Verizon Wireless will limit the data throughput speeds should 25 GB of data usage be reached in any given billing cycle on any line. Data throughput speeds for additional usage will be limited for the remainder of the then-current bill cycle for the line(s) that exceed the 25 GB high-speed data usage threshold. We reserve the right to adjust data throughput limitation thresholds to as low as 5GB with prior written notice. . NVLPT 3G/4G Nationwide Email for Government Nationwide Add-a-Line Plan The calling plan below reflects the monthly access fee discount. No additional discounts apply. NVLPT 3G/4G Nationwide Email for Government Add-a-Line Plan Government Subscribers Only Monthly Access Fee $35.991 (86140) Monthly Anytime Voice Minutes 0 Minutes Minutes can share minutes from voice & data bundle plans Domestic Voice Per Minute Rate $0.25 Domestic Night & Weekend Minutes Unlimited Domestic Nationwide Mobile to Mobile Unlimited Domestic Long Distance Included Domestic Data Allowance Unlimited* Domestic Text (SMS) Unlimited Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. 1The $35.99 Add-a-Line plan can only be 50% of an accounts total share lines. The $35.99 Add-A-Line plan shares with the NVLPT Nationwide for Government 400, 600 and 1000 minute plans. * Verizon Wireless will limit the data throughput speeds should 25 GB of data usage be reached in any given billing cycle on any line. Data throughput speeds for additional usage will be limited for the remainder of the then-current bill cycle for the line(s) that exceed the 25 GB high-speed data usage threshold. We reserve the right to adjust data throughput limitation thresholds to as low as 5GB with prior written notice. Account Share Voice Sharing: At the end of each bill cycle, any unused voice allowances for lines sharing on the same account will be applied to the overages of the other lines on the same account beginning with the line with the highest overage need. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 9 of 41 NVLPT Smartphone Calling Plans for Government Subscribers The calling plan below reflects the monthly access fee discount. No additional discounts apply. Includes Wireless Sync or BlackBerry Solution compatible with Microsoft Outlook, Lotus Notes, POP3, and IMAP email accounts. . Monthly Access Fee $35.99 (86139) Domestic MB Allowance Unlimited* Domestic Voice Per Minute Rate1 $0.12 Domestic Nationwide Mobile to Mobile Unlimited Domestic Text (SMS) and Multimedia (MMS) Messages Unlimited Domestic Long Distance2 Included Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. Subject to the Data Services terms and conditions; additional terms and conditions apply to Unlimited, Megabyte (MB), Smartphone and BlackBerry Plans. Current coverage details can be found at www.verizonwireless.com. 1Per minute roaming applies to Voice calls.2Domestic long distance is included when placing calls in the America’s Choice home airtime rate and coverage area. * Verizon Wireless will limit the data throughput speeds should 25 GB of data usage be reached in any given billing cycle on any line. Data throughput speeds for additional usage will be limited for the remainder of the then-current bill cycle for the line(s) that exceed the 25 GB high-speed data usage threshold. We reserve the right to adjust data throughput limitation thresholds to as low as 5GB with prior written notice.. Flexible Business Plans For Basic & Smartphones The calling plans below reflect the monthly access fee discount. No additional discounts apply. Basic Phones* Smartphones1 Monthly Access Fee $35.00 (92731) $65.00 (92732) $75.00 (92736) $85.00 (92737) $95.00 (92738) $105.00 (92740) Monthly Access Fee less discount $27.30 $50.70 $58.50 $66.30 $74.10 $81.90 Shared Data Allowance 100 MB 2 GB 4 GB 6 GB 8 GB 10 GB Data Overage $10.00 per GB Mobile Hotspot2 Included Monthly Anytime Minutes Unlimited Messaging Allowance3 Unlimited Domestic and International Messaging Optional Features Domestic Push to Talk Plus Additional monthly access fee per line $5.00 per line Notes: Current coverage details and additional plan and feature information can be found at www.verizonwireless.com. No Domestic Roaming or Long Distance Charges. 4G service requires 4G Equipment and 4G coverage. Government subscribers only. * Basic phones may only be added to an account with at least 1 Smartphone (bill account level). 1. Access to corporate email using BlackBerry Enterprise Server (BES) is available for an additional $15.00 per line. 2. Mobile Hotspot is available on all capable devices and allows you to use your device and share data allowance with multiple Wi-Fi enabled devices. 3. Unlimited Messaging from within the United States to anywhere in the world where messaging services are available. Data Sharing: Lines activated on these plans can only share with other lines on these plans and with lines on the Flexible Business Plans for Data Devices. At the end of each bill cycle, any unused data allowances for lines sharing on the same account will be applied to the overages of the other lines on the same account beginning with the line with the lowest overage need. Plan changes may not take effect until the billing cycle following the change request. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 10 of 41 WIRELESS DATA SERVICES Data Only Plans: Government Subscribers (Up to 10 Data Only Devices) Select Device Type Jetpacks1 (SFO 77555) USBs (SFO 77555) Netbooks/ Notebooks, LTE Internet (SFO 77555, 78045) 4G LTE Routers with data only (SFO 77555) Verizon 4G LTE Broadband Routers with data only (SFO 79392) Tablets (including Google Chromebook and Amazon Kindle Fire) (SFO 77567) Connected Devices (SFO 78303) Monthly Line Access Fee $20.00 per device $20.00 per device $20.00 per device $20.00 per device $20.00 per device $10.00 per device $5.00 per device Select Data Amount The calling plans below reflect the monthly access fee discount. No additional discounts apply. Monthly Account Access Maximum Number of Devices (per billing account) Shared Data Allowance Domestic Data Overage $20.002 (90525) Tablet & Connected Devices only Up to 10 2GB $15.00 per 1 GB $30.002 (86504) 4 GB $40.00 $31.20 (86505) 6 GB $50.00 $39.00 (86506) 8 GB $60.00 $46.80 (86507) 10 GB $70.00 $54.60 (86508) 12 GB $80.00 $62.40 (86509) 14 GB $90.00 $70.20 (86510) 16 GB $100.00 $78.00 (86511) 18 GB $110.00 $85.80 (86512) 20 GB $185.00 $144.30 (86513) 30 GB $260.00 $202.80 (87271) 40 GB $335.00 $261.30 (87272) 50 GB $410.00 $319.80 (90910) 60 GB $560.00 $436.80 (90911) 80 GB $710.00 $553.80 (90912) 100 GB Domestic Messaging (Text and Multimedia) $10.00 for 1000 message package Pay as you go or message package overage: $0.20 (SMS) Text, $0.25 (MMS) sent/received Cloud Storage 5 GB per line (must be selected) Notes: Data-only devices on these plans share in the data allowance but do not share the minutes or message allowance unless the device is capable. Verizon Plans data-only plans are not available for accounts with Smartphones, basic phones or connected devices with voice. 1LTE Internet (installed) devices require a data package of 10 GB or higher. 2No additional discounts apply. Current coverage details can be found at www.verizonwireless.com. Access fee discounts applied at the account level only. Sharing: Customers subscribing to Verizon Plans - Data Only - will be billed on separate billing accounts and invoices. Sharing is available only among Government Subscribers to these Data Only Plans - Data Only on the same account. Promotions may be available for Monthly Line and Account Access Fees. Please contact your Government Account Manager. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 11 of 41 Business Data Only Plans: Government Subscribers (Up to 25/50/100 Data Only Devices) Select Device Type Jetpacks (SFO 77555) USBs (SFO 77555) Netbooks/ Notebooks, LTE Internet (SFO 77555, 78045) 4G LTE Broadband Router (SFO 77555) Verizon 4G LTE Broadband (SFO 79392) Tablets (including Google Chromebook) (SFO 77567) Connected Devices (SFO 78303) Monthly Line Access Fee $20.00 per device $20.00 per device $20.00 per device $20.00 per device $20.00 per device $10.00 per device $5.00 per device Select Data Amount The calling plans below reflect the monthly access fee discount. No additional discounts apply. Monthly Account Access Maximum Number of Devices (per billing account) Shared Data Allowance Domestic Data Overage $185.00 $144.30 (87184) Up to 25 30 GB $15.00 per 1 GB $245.00 $191.10 (87185) 40 GB $350.00 $273.00 (87186) 50 GB $410.00 $319.80 (90430) Up to 50 60 GB $560.00 $436.80 (90431) 80 GB $710.00 $553.80 ( 90429) 100 GB $1,025.00 $799.50 (91521) Up to 100 150 GB $1,400.00 $1,092.00 (91520) 200 GB Domestic Text Messaging 10.00 for 1000 text and multi media Overage: $0.20 (SMS) Text, $0.25 (MMS) sent/received Optional Cloud Storage 25 GB per line (must be selected) Notes: Data-only devices on these plans use the data allowance but do not use the minutes or message allowance unless the device is capable. The Small Business for data-only devices is not available for accounts with Smartphones, basic phones or connected devices with voice. Current coverage details can be found at www.verizonwireless.com. Access Fee discounts applied at the account level only. Sharing: Sharing is available only among Government Subscribers to these Business Data Only Plans - Data Only. Calling plan changes may not take effect until the billing cycle following the change request. Text, Picture and Video messages are not eligible for sharing. Data allowances from Business Data Only plans will not share with any non- Business Data Only Plans. Safety Mode, Carryover Data and Data Boost features cannot be added to data-only plans. Promotions may be available for Monthly Line and Account Access Fees. Please contact your Government Account Manager. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 12 of 41 Flexible Business Plans For Data Devices The calling plans below reflect the monthly access fee discount. No additional discounts apply. Connected Devices Connected Devices, Tablets, Netbooks, Notebooks Connected Devices, Tablets, Netbooks, Notebooks, Jetpacks, USBs, Mobile Broadband Devices Monthly Access Fee $5.00 (92739) $10.00 (92741) $35.00 (92742) $45.00 (92744) $55.00 (92745) $65.00 (92746) $75.00 (92747) Monthly Access Fee less discount $5.00 $10.00 $27.30 $35.10 $42.90 $50.70 $58.50 Shared Data Allowance 1 MB 100 MB 2 GB 4 GB 6 GB 8 GB 10 GB Data Overage Rate $10.00 per GB Notes: Current coverage details and additional plan and feature information can be found at www.verizonwireless.com. 4G service requires 4G Equipment and 4G coverage. Government subscribers only. Data Sharing: These plans only share with other lines on these plans and with lines on the Flexible Business Plans for Basic & Smartphones. At the end of each bill cycle, any unused data allowances for lines sharing on the same account will be applied to the overages of the other lines on the same account beginning with the line with the lowest overage need. Plan changes may not take effect until the billing cycle following the change request. Flexible Business Plans For Data Devices - Connected Device / Internet with Voice Plans The calling plans below reflect the monthly access fee discount. No additional discounts apply. Connected Device* Broadband Router Monthly Access Fee $5.00 (94532) $65.00 (94495) $75.00 (94496) $85.00 (94497) $95.00 (94500) $105.00 (94504) Monthly Access Fee less discount $5.00 $50.70 $58.50 $66.30 $74.10 $81.90 Shared Data Allowance 1 MB 2 GB 4 GB 6 GB 8 GB 10 GB Domestic Data Overage Rate $10.00 per GB Notes: Current coverage details and additional plan and feature information can be found at www.verizonwireless.com. 4G service requires 4G Equipment and 4G coverage. Government subscribers only. Data Sharing: These plans only share with other lines on these plans and with lines on the Flexible Business Plans for Basic & Smartphones. At the end of each bill cycle, any unused data allowances for lines sharing on the same account will be applied to the overages of the other lines on the same account beginning with the line with the lowest overage need. Plan changes may not take effect until the billing cycle following the change request. Custom Flat Rate Mobile Broadband - Government Government Subscribers Only This plan is not eligible for monthly access fee discounts. Monthly Access Fee $34.99 (99716) Domestic Data Allowance* Unlimited Overage Rate per KB NA NOTE: Subject to the Mobile Broadband terms and conditions; additional terms and conditions apply to Unlimited, Megabyte (MB), and Smartphone data Plans. Throughput speeds on the Custom Flat Rate Mobile Broadband will be limited up to 600kbps throughout the duration of each billing cycle while on the Verizon Wireless 4G network only. Data speeds are not guaranteed while on Extended or roaming partner networks. Devices utilized in conjunction with the Custom Flat Rate Mobile Broadband plan are limited to mobile (non-stationary) applications. Dedicated internet connections on stationary router devices and streaming video on stationary video surveillance cameras are expressly prohibited on this rate plan. Custom Mobile Broadband Plan II – Government Government Subscribers Only This plan is not eligible for monthly access fee discounts. Monthly Access Fee $44.99 (99717) Domestic Data Allowance Unlimited Overage Rate Per KB NA NOTE: Subject to the Mobile Broadband terms and conditions; additional terms and conditions apply to Unlimited, Megabyte (MB), and Smartphone data Plans. Verizon Wireless will limit throughput of data speeds should 30GB of data be used within a given bill cycle. Devices utilized in conjunction with the Custom Mobile Broadband Plan II are limited to mobile (non-stationary) applications. Data speeds are not guaranteed while on Extended or roaming partner networks. Dedicated internet connections on stationary router devices and streaming video on stationary video surveillance cameras are expressly prohibited on this rate plan. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 13 of 41 Data Packages for Feature Phones and Smartphones The Data Packages are eligible for monthly access fee discounts and promotions, when available1 Monthly Access Per Line when added to an eligible voice plan Data Allowance Rate After Allowance Optional Business Email Feature Compatible with server based email solutions N/A -0- $1.99 per MB N/A $10.00 (77810) 75 MB $10.00 per each additional 75 MB of usage N/A $12.00 1 (Basic Devices Only) 300 MB $15.00 per each additional GB of usage N/A $30.00 $23.40 2, 3 (Smartphone 76375) (Basic 76381) 2 GB2 $10.00 per each additional GB of usage $15.00 Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options.. 1The $12.00/300MB data package for Basic Devices can be added to a voice only price plan with a monthly access fee of $15.99 or higher, this feature cannot be activated on a Smartphone Device. 2The $30.00/2GB data package is eligible for a monthly access fee discounts when combined with select Business calling plans 3Smartphone Subscribers require a data package with a minimum allowance of 2GB. Personal Email Feature is included with all data packages contained herein. Mobile Broadband Data Plans The calling plans below reflect the monthly access fee discount. No additional discounts apply. Mobile Broadband Pricing for Tablets, Netbooks, 4G LTE Modems, 3G & 4G LTE Dedicated Mobile Hotspots Monthly Access Fee $30.001 (85320/85322) $39.99 (84357/ 98715) Domestic Monthly Data Allowance 2GB Unlimited* Per GB Rate After Allowance $10.00 per each additional GB of usage N/A Domestic Per Minute Rate2 $0.25 per minute Domestic Long Distance Included Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. 4G and 3G Mobile Broadband coverage details can be found at www.verizonwireless.com. 4G service requires 4G equipment and 4G coverage. 2Per Minute Rate applies to voice calls and other non-NationalAccess data usage in the United States. * Verizon Wireless will limit the data throughput speeds should 25 GB of data usage be reached in any given billing cycle on any line. Data throughput speeds for additional usage will be limited for the remainder of the then-current bill cycle for the line(s) that exceed the 25 GB high-speed data usage threshold. We reserve the right to adjust data throughput limitation thresholds to as low as 5GB with prior written notice. Public Sector Mobile Broadband Share Plans: Government Subscribers Only The calling plans below reflect the monthly access fee discount. No additional discounts apply. Public Sector Mobile Broadband 5 Gigabytes 10 Gigabytes 20 Gigabytes Monthly Access Fee $39.99 (90239) $59.99 (90240) $99.99 (90241) Shared Domestic Data Allowance 5GB 10GB 20GB Overage Per Gigabyte $8.00 Per Gigabyte Note: This plan is available for domestic data only devices, on the Verizon Wireless network only. Data Sharing: At the end of each bill cycle, any unused data allowances for lines sharing on the same account will be applied to the overages of the other lines on the same account beginning with the line with the lowest overage need. Plan changes may not take effect until the billing cycle following the change request. Current NationalAccess and Mobile Broadband coverage details can be found at www.verizonwireless.com. New activations on these service plans require 4G LTE devices. Existing customers transitioning to one of these service plans are able to utilize existing 3G devices. The 5GB, 10GB, and 20GB Public Sector Mobile Broadband Plans are able to share with each other. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 14 of 41 MACHINE TO MACHINE (M2M) Mobile Broadband Machine to Machine (M2M) Share Group 1 Plans - Low Usage The data plans below reflect the monthly access fee discount. No additional discounts apply. Mobile Broadband Machine-to-Machine Plans 1 Megabyte 5 Megabytes 25 Megabytes 50 Megabytes 150 Megabytes Domestic Profile Shared Data Allowance 1 MB (87660) 5 MB (87661) 25 MB (87662) 50 MB (87663) 150MB (87664) Monthly Access Fee $5.00 $7.00 $10.00 $15.00 $18.00 Domestic Account Shared Data Allowance 1 MB (87640) 5 MB (87641) 25 MB (87642) 50 MB (87643) 150MB (87644) Monthly Access Fee $5.00 $7.00 $10.00 $15.00 $18.00 Overage Rate Per Megabyte $1.00 Mobile Broadband Machine to Machine (M2M) Share Group 2 Plans - High Usage The data plans below reflect the monthly access fee discount. No additional discounts apply. Mobile Broadband Machine-to-Machine Plans 250 Megabytes 1 Gigabyte 5 Gigabytes 10 Gigabytes Domestic Profile Shared Data Allowance 250 MB (87665) 1 GB (87668) 5 GB (87671) 10 GB (87673) Monthly Access Fee $20.00 $25.00 $50.00 $80.00 Monthly Access Fee less discount $20.00 $25.00 $39.00 $62.40 Domestic Account Shared Data Allowance 250 MB (87645) 1 GB (87646) 5 GB (87647) 10 GB (87648) Monthly Access Fee $20.00 $25.00 $50.00 $80.00 Monthly Access Fee less discount $20.00 $25.00 $39.00 $62.40 Overage Rate Per Megabyte $0.015 Note: Machine to Machine coverage included the Verizon Wireless 4G, 3G and 3G Extended networks. See attached Calling Plan and Feature Details for important information about calling plans, features and options. Government Subscribers may supply their own authenticated Equipment (CPE) approved by Verizon Wireless to be activated on these plans. Netbook, Smartphone, and Tablet devices are not eligible for Mobile Broadband M2M pricing. 4G service requires 4G Telemetry equipment and 4G coverage. All terms and conditions of the Agreement apply to M2M service and M2M Lines as a Wireless Service. Sharing. Customer may select either the Account Share or Multi-Account Share option on the Mobile broadband Machine-to-Machine (M2M) Share Plans. Please note that the low usage cannot share with the high usage plans on profile share. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 15 of 41 Public Sector Mobile Broadband Machine to Machine (M2M) Share Plans: Government Subscribers Only The calling plans below reflect the monthly access fee discount. No additional discounts apply. Public Sector Mobile Broadband 5 Gigabytes 10 Gigabytes 20 Gigabytes Monthly Access Fee $39.99 (90233) $59.99 (90234) $99.99 (90235) Shared Domestic Data Allowance 5GB 10GB 20GB Overage Per Gigabyte $8.00 Per Gigabyte Note: This plan is available for domestic data only devices, on the Verizon Wireless network only. Data Sharing: At the end of each bill cycle, any unused data allowances for lines sharing on the same account will be applied to the overages of the other lines on the same account beginning with the line with the lowest overage need. Plan changes may not take effect until the billing cycle following the change request. Current NationalAccess and Mobile Broadband coverage details can be found at www.verizonwireless.com. New activations on these service plans require 4G LTE devices. Netbook, Smartphone, and Tablet devices are not eligible for Mobile Broadband M2M pricing. Existing customers transitioning to one of these service plans are able to utilize existing 3G devices. Sharing. The 5GB, 10GB, and 20GB Public Sector Mobile Broadband Machine to Machine Plans are able to share with each other. 3G/4G Mobile Broadband Machine-to-Machine (M2M) Wireless Backup Router Plan: Government Subscribers Only The data plan below reflect the monthly access fee discount. No additional discounts apply. 3G/4G M2M Wireless Backup Router Plan Monthly Access Fee (non-pooled) $10.00 (868473G/868484G) Domestic Data Allowance Per Month 25 MB Share Option N/A Domestic Overage Rate Per GB $10.00 per GB Domestic Voice Rate Per Minute $0.25 per minute (Device Dependent) Text Messaging Per Message $0.20 per message sent or received (Device Dependent) International Roaming N/A. Verizon Wireless network only. Notes: Current coverage details can be found at www.verizonwireless.com. See the attached M2M Data Plan and Feature Details as well as Calling Plan and Feature Details in your Agreement for important information about calling plans, features and options. During an outage of the primary connection, all usage within the billing cycle in excess of the 25 MB allowance will be charged at the overage rate of $10.00 per GB. Text messaging feature packages may be added to this plan. The Wireless Router Plan is approved for use as a backup solution for business continuity only and is not to be used for primary connectivity. Verizon Wireless reserves the right to move Customer to the standard commercial 5 GB M2M price plan should usage on the lines provisioned on the M2M Wireless Backup Router Plan exceed 1 GB for three (3) consecutive months. M2M Wireless Backup Router Plan may be used with Private Network. M2M router devices must be approved for use on Verizon Wireless’ network; no other device types may be activated on this plan. Not eligible for Verizon Wireless Government Equipment Matrix pricing. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 16 of 41 INTERNATIONAL WIRELESS SERVICES NVLPT Nationwide International Email for Government Calling Plans The calling plans below reflect the monthly access fee discount. No additional discounts apply. NVLPT Nationwide for Government 400 Voice Minutes 600 Voice Minutes 1000 Voice Minutes Monthly Access Fee (non-share) $84.14 (74524/ 86740) $99.99 (74526/86742) $114.62 (74528/ 86744) Monthly Access Fee (non-share) less discount $65.63 $77.99 $89.40 Monthly Access Fee (share) $86.57 (74525/ 86741) $102.43 (74527/ 86743) $117.06 (74529/ 86745) Monthly Access Fee (share) less discount $67.52 $79.89 $91.30 Monthly Anytime Voice Minutes 400 600 1000 Friends & Family (up to 10 numbers per account) Included Voice Overage Rate $0.25 per minute Domestic Mobile to Mobile Unlimited Domestic Night & Weekend Minutes Unlimited Domestic Long Distance Included Domestic Email Allowance Unlimited1 International Email Allowance Unlimited Domestic Messaging Unlimited Optional Features Domestic Push To Talk Plus $2.00 (Smartphone- 76785/81129/81174) Notes: Requires a 4G Global capable smartphone. Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. The domestic data allowance applies in the United States. †The international travel data allowance applies in Canada, Mexico, and the rest of the world where coverage is available. To see supported countries and rates for services such as voice and messaging, go to verizonwireless.com/international. Verizon Wireless will terminate a line of service if more than half of the usage over three consecutive billing cycles is outside of the United States. 1Domestic Data Allowance: Verizon Wireless will limit the data throughput speeds should 25 GB of data usage be reached in any given billing cycle on any line. Data throughput speeds for additional usage will be limited for the remainder of the then-current bill cycle for the line(s) that exceed the 25 GB high-speed data usage threshold. We reserve the right to adjust data throughput limitation thresholds to as low as 5GB with prior written notice.. Account Share - Voice Sharing (Domestic Only): At the end of each bill cycle, any unused voice allowances for lines sharing on the same account will be applied to the overages of the other lines on the same account beginning with the line with the highest overage need. Profile Share - Voice Sharing (Domestic Only): At the end of each bill cycle, any unused voice allowances for lines sharing across multiple accounts will be applied proportionally to all lines with overages. Zone 1 Countries are as follows: Aland Islands, Albania, American Samoa, Andorra, Anguilla, Antigua, Antarctica, Argentina, Aruba, Australia, Austria, Bahamas, Barbados, Belarus, Belgium, Belize, Bermuda, Bolivia, Bosnia and Herzegovina, Brazil, British Virgin Islands, Brunei, Bulgaria, Cambodia, Cayman Islands, Chile, China, Christmas Island, Colombia, Cook Islands, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominica, Dominican Republic, Ecuador, El Salvador, England, Estonia, Falkland Islands, Faroe Islands, Fiji Islands, Finland, France, French Guiana, French Polynesia, Germany, Gibraltar, Greece, Greenland, Grenada, Guadeloupe, Guam, Guatemala, Guernsey, Guyana, Haiti, Honduras, Hong Kong, Hungary, Iceland, India, Ireland, Isle of Man, Italy, Jamaica, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Macau, Macedonia, Malaysia, Malta, Martinique, Moldova, Monaco, Montenegro, Nauru, Netherlands, Netherlands Antilles, New Caledonia, New Zealand, Nicaragua, Norfolk Island, Northern Ireland, Northern Mariana Island, Norway, Palau, Panama, Papua New Guinea, Paraguay, Peru, Poland, Portugal, Reunion, Romania, Russia, Samoa, San Marino, Scotland, Serbia, Singapore, Slovakia, Slovenia, Solomon Islands, Spain, South Korea, St. Barthelemy, St. Kitts and Nevis, St. Lucia, St. Martin, St. Vincent & Grenadines, Suriname, Svalbard, Sweden, Switzerland, Taiwan, Thailand, Tonga, Turkey, Turks and Caicos Islands, Ukraine, Uruguay, Vanuatu, Vatican City, Venezuela, Vietnam and Wales. Zone 2 Countries are as follows: Afghanistan, Algeria, Angola, Armenia, Azerbaijan, Bahrain, Bangladesh, Benin, Bhutan, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde Islands, Central African Republic, Chad, Comoros, Congo, Cuba, Djibouti, East Timor, Egypt, Equatorial Guinea, Ethiopia, Gabon, Gambia, Georgia, Ghana, Guinea, Guinea Bissau, Indonesia, Iraq, Israel, Ivory Coast, Japan, Jordan, Kazakhstan, Kenya, Kuwait, Kyrgyzstan, Laos, Lebanon, Lesotho, Liberia, Libya, Madagascar, Malawi, Maldives, Mali, Mauritania, Mauritius, Mayotte Island, Micronesia, Mongolia, Montserrat, Morocco, Mozambique, Myanmar, Namibia, Nepal, Niger, Nigeria, Oman, Pakistan, Philippines, Qatar, Rwandese Republic, Sao Tome and Principe, Saudi Arabia, Senegal, Seychelles, Sierra Leone, South Africa, Sri Lanka, South Sudan, Sudan, Swaziland, Syria, Tajikistan, Tanzania, Togo, Trinidad and Tobago, Tunisia, Turkmenistan, Uganda, United Arab Emirates, Uzbekistan, Western Sahara, Yemen, Zambia and Zimbabwe. Other available countries will be billed at the Zone 2 rates. The list of countries is subject to change. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 17 of 41 International Options Monthly Features: Mexico and Canada The calling features below reflect the monthly access fee discount. No additional discounts apply. International Options Monthly Feature: Mexico and Canada 0 Voice Minutes 0 Voice Minutes 100 Voice Minutes 250 Voice Minutes 500 Voice Minutes Monthly Access Fee (1 Month)* $10.00 (SPO 428)* $20.00 (SPO 426)* $15.00 (SPO 441)* $30.00 (SPO 425)* $25.00 (SPO 443)* Monthly Access Fee less discount $10.00 $20.00 $15.00 $23.40 $25.00 International Options Monthly Recurring Feature: Mexico and Canada 0 Voice Minutes 0 Voice Minutes 100 Voice Minutes 250 Voice Minutes 500 Voice Minutes Monthly Access Fee (Recurring)** $10.00 (SPO 427)** $20.00 (SPO 446)** $15.00 (SPO 434)** $30.00 (SPO 424)** $25.00 (SPO 442)** Monthly Access Fee less discount $10.00 $20.00 $15.00 $23.40 $25.00 Voice Overage Rate Pay Go $0.10/minute $0.05/minute Data Allowance1 100 MB 250 MB 100 MB 250 MB 1 GB Data Overage Rate After Allowance2 $10.00/100 MB $20.00/1 GB Messaging Allowance3 Pay Go 100 sent; unlimited incoming 250 sent; unlimited incoming 500 sent; unlimited incoming Messaging Overage Rate After Allowance2 Pay Go $0.10/Sent Message $0.05/Sent Message Notes: Current coverage details and additional information can be found at www.verizonwireless.com. 1The data allowance applies in Canada and Mexico only, where coverage is available. All data usage, including dedicated Mobile Hotspot, deducts from the same data allowance. Requires an eligible domestic data plan or feature and an International GSM capable device. 2The overage rate is not eligible for discounts. 3Multimedia messages (MMS) are included in the allowance, but incur data transport charges (deducts from the International data allowance). Pay Go rates for International Voice, International Messaging, and Data Roaming can be found at www.verizonwireless.com/International. *This is a monthly feature and will be removed from the account one month after being added to an account. **This is a recurring feature and will remain on the account until removed. International Options Monthly Features: 140+ Countries The calling features below reflect the monthly access fee discount. No additional discounts apply. International Options Monthly Feature: 140+ Countries 0 Voice Minutes 0 Voice Minutes 100 Voice Minutes 250 Voice Minutes Monthly Access Fee (1 Month)* $25.00 (SPO 431)* $50.00 (SPO 433)* $40.00 (SPO 445)* $85.00 (SPO 423)* Monthly Access Fee less discount $19.50 $39.00 $31.20 $66.30 International Options Monthly Recurring Feature: 140+ Countries 0 Voice Minutes 0 Voice Minutes 100 Voice Minutes 250 Voice Minutes Monthly Access Fee (Recurring) $25.00 (SPO 412)** $50.00 (SPO 432)** $40.00 (SPO 444)** $85.00 (SPO 422)** Monthly Access Fee less discount $19.50 $39.00 $31.20 $66.30 Voice Overage Rate Pay Go $0.25/minute Data Allowance1 100 MB 250 MB 100 MB 250 MB Data Overage Rate After Allowance2 $25.00/100 MB Messaging Allowance3 Pay Go 100 sent; unlimited incoming 250 sent; unlimited incoming Messaging Overage Rate After Allowance2 Pay Go $0.25/Sent Message Notes: Current coverage details and additional information can be found at www.verizonwireless.com. 1The data allowance applies in 140+ countries where coverage is available. All data usage, including dedicated Mobile Hotspot, deducts from the same data allowance. Requires an eligible domestic data plan or feature and an International GSM capable device. 2The overage rate is not eligible for discounts. 3Multimedia messages (MMS) are included in the allowance, but incur data transport charges (deducts from the International data allowance). Pay Go rates for International Voice, International Messaging, and Data Roaming can be found at www.verizonwireless.com/International. 1This is a monthly feature and will be removed from the account one month after being added to an account. 2This is a recurring feature and will remain on the account until removed. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 18 of 41 Global Messaging1 No additional discounts apply. Global Text Messaging Canada $0.20 per recipient per message sent and $0.20 per message received, or according to your Domestic Messaging Plan Other Countries $0.50 per recipient per message sent and $0.05 per message received Global Picture and Video Messaging Canada, Mexico and Puerto Rico $0.25 per recipient per message sent or received, or according to your Domestic Messaging Plan, plus global data roaming charges. Other Countries $0.50 per recipient to send, $0.25 per message to receive plus global data roaming charges. Visit verizonwireless.com/internationalmms for supported countries. Notes: Current coverage details, and list of Other Available Countries can be found at www.verizonwireless.com/International. See attached Calling Plan and Feature Details for important information about calling plans, features and options. 1Applies to all global-capable devices. Must be added to a domestic 3G Mobile Broadband calling plan with domestic 3G Mobile Broadband Connect/Mobile Hotspot. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 19 of 41 ADDITIONAL WIRELESS OPTIONS One Talk Solution: Government Subscribers Only The plans/features below reflect any applicable discount. No additional discounts apply. One Talk is a business telephone system that combines landline and mobile phone capabilities into a fully integrated mobile and office solution providing a single telephone number (“Mobile Data Number/MDN”) with the same mobile and landline features. One Talk Solution: Desk Phone/Mobile Client Price Plan Type Line Level Plans (e.g. Flexible Business Plans, Custom Flexible Business Plans, Nationwide Plans) Account Level Plans (e.g. Verizon Plans, More Everything) One Talk Primary MDN Monthly Access Monthly Access One Talk Price Plan (100 MB Data) $10.00 $0.00 (the new Verizon Plan) One Talk Feature $15.00 $15.00 One Talk Line Access Charge N/A $10.00 One Talk Solution: Auto Receptionist (AR) /Hunt Group (HG) Each One Talk solution includes one (1) Auto Receptionist and one (1) Hunt Group at no cost per Customer. Price Plan Type Line Level Plans (e.g. Flexible Business Plans, Custom Flexible Business Plans, Nationwide Plans) Account Level Plans (e.g. Verizon Plans, More Everything) One Talk Primary MDN Monthly Access Monthly Access One Talk AR/HG Price Plan (100 MB Data) $10.00 $0.00 One Talk AR/HG Feature $10.00 $10.00 One Talk AR/HG Line Access Charge N/A $10.00 One Talk Solution: Additional Features One Talk Premium Voicemail for Andriod $2.99 $2.99 One Talk - Talk to Text for iOS $2.99 $2.99 Additional Devices A maximum of up to seven (7) devices can share one (1) MDN as follows: Up to 2 desk phones and up to 5 mobile clients; limit one (1) MDN per Government Subscriber line. Primary One Talk MDN Device Desk Phone1 Mobile Client2 (Includes Smartphones and Tablets) Auto Receptionist/ Hunt Group Additional devices per MDN: Monthly Access $0.00 for additional devices (excluding Smartphone devices with One Talk Dialer client) $0.00 for additional devices (excluding Smartphone devices with One Talk Dialer client) N/A Once a number is provisioned into an Auto Receptionist or Hunt Group, the phone number cannot be moved to a different One Talk device (i.e. desk phone or Smartphone). Notes: One Talk service is applied to the Verizon Wireless MDN and is available on all of the user’s devices. One Talk is not compatible with Fax machines, credit card POS solutions, or Security Systems. 4G LTE Coverage: Similar to Advanced Calling, One Talk calls drop if either party leaves Verizon 4G LTE coverage. When outside of the 4G LTE coverage area and without 3G or WiFi service, the device operates as a standard device (1X calling) with standard voice and SMS messaging capabilities with no One Talk features available to the user. Mobile client is the One Talk client. 1One (1) additional Desk Phone can be added as an additional device per MDN. 2Mobile Client eligible devices (includes devices from other carriers); Smartphones (without One Talk Dialer client), wireless and WiFi tablets; limit five (5) total per MDN (including primary device). Not currently available for Smartphone devices with One Talk Dialer client. Installing the One Talk Mobile client consumes an estimated 15MB of data. For additional information regarding One Talk please visit: http://www.verizonwireless.com/onetalk Custom Wireless Home Phone for Government Plan*: No Domestic Roaming or Long Distance Charges This Plan is NOT eligible for monthly access fee discounts. Monthly Access Fee $20.00 Monthly Anytime Minutes Unlimited Notes: Current coverage details and additional plan and feature information can be found at www.verizonwireless.com. Activation on this plan requires a separate billing account. Activations on this plan are limited to no more than 9 lines per account. *May only be activated on a Verizon Wireless Home Phone Approved Device. This is not a Home Phone service. This service is generally utilized to replace POTS lines. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 20 of 41 4G Smartwatch with NumberShare1 Unlimited Plan - Government This plan is not eligible for monthly access fee discounts. Monthly Access Fee $10.00 (13413) Domestic Anytime Minutes Unlimited Domestic Data Allowance2 Unlimited Domestic and International Messaging Allowance3 Unlimited Notes: Current coverage details and additional plan information can be found at www.verizonwireless.com. This plan is for use only in the United States on the Verizon Wireless 4G network. When NumberShare is active on a 4G Smartwatch, certain services will not work on the Smartwatch device including: Call Forwarding, No Answer Transfer, Busy Transfer, Caller Name ID, Voicemail (access voicemail on the Smartwatch device by dialing the host smartphone number and pin)), and RingBack Tones. Calls and messages to/from blocked contacts will not be blocked on the Smarthwatch when NumberSharing with a host smartphone. Verizon does not guarantee that NumberShare will work at all times in every situation and the service works only with eligible devices. 1. Only lines on select smartwatches with the NumberShare service can be activated on this plan. Certain conditions must be met prior to activation. This plan can only be used when paired with a Verizon Wireless Smartphone that has unlimited data. 2. Usage may be prioritized behind other customers in the event of network congestion. 3. Unlimited messaging from within the United States to anywhere in the world where messaging services are available. Private Network/Dynamic Mobile Network Routing (DMNR)/Service Based Access(SBA) Static IP – Isolated Pool w/Fixed End System (FES) [Internet Restricted] The Account Set-Up Fees below reflect any applicable discount. No additional discounts apply. Mobile Broadband and NationalAccess plans or features only Configuration Cost Per Account FES Connect Set-Up (One time fee) $1500.00 Private Network Only Private Network with DMNR Private Network with SBA Static IP Only Per Account Level Set-Up (One time fee) Waived for NASPO Valuepoint subscribers $250.00 $250.00 Waived for NASPO Valuepoint subscribers DMNR or SBA (Per build) $250.00 (Adding to existing Private Network Only) Public Safety Subscribers Account Set-Up: Verizon Wireless will waive all account set-up fees including the $1500.00 connection fee, $500.00 Account Set-up Fee and the DMNR/SBA for new Public Safety builds classified with the following NAICS (formerly SIC) Codes only. • 621910 Ambulance Services • 922160 Fire Protection • 922110 Courts • 922190 Other Justice, Public Order, and Safety Activities • 922120 Police Protection • 928110 National Security • 922130 Legal Counsel and Prosecution • 922150 Parole Offices and Probation Offices • 922140 Correctional Institutions Note: Set-Up fees apply to new Private Network/DMNR/SBA builds (Verizon Home Agent Portal (VHAP)). This applies to New Private Networks built as Standard, Parent or Child. Subscribers that are placed into this pool will be limited to utilizing the Verizon Wireless Network for transport to and from their FES connections to the Verizon Wireless Network. Static IP addresses will be available on remote access, Mobile Broadband and Unlimited NationalAccess plans or features only. Fees may not apply in certain VPN environments. Fees are per account level (regardless of the number of IPs ordered) selecting Static IP, and may apply in addition to $1500.00 Connect Fee in certain configurations. Does not include MPLS. Static IP: Fees are per account level (regardless of the number of IPs ordered). Static IP addresses will be available on remote access, Mobile Broadband and NationalAccess plans or features only. Static IP addresses may be reserved and should be assigned to the mobile numbers within 90 days. De-activated Static IP addresses will go into an “ageing pool” for 24 hours. After 24 hours, these Static IP addresses will be returned to reserved status for the account. Reserved Static IP addresses will be shown at the account level and can be viewed from the billing system. Feature activations will be stored in the “data warehouse” database along with the Static IP Address for reporting. A Static IP address is associated with the device’s MDN (Mobile Dialing Number). Each time the subscriber initiates a data session the Static IP address that is associated with their MDN is assigned to their device for each session. Subscribers completing an ESN (Electronic Serial Number) change will retain their Static IP address. Eligible 3G/4G data service: Mobile Broadband, Mobile Broadband Wireless Router, Telemetry (M2M), Wireless Email, or usage-based Megabyte pricing. DMNR and SBA are optional features that can co-exist on a Customer's Private Network profile. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 21 of 41 4G LTE Private Network Traffic Management (PNTM) Feature: Private IP Only (fixed WAN) Metered Data Pricing only. Not compatible with Unlimited Data Plans (PNTM feature is available for use with Verizon Wireless Private Network and 4G LTE devices only.) The plans below reflect any applicable discount. No additional discounts apply. Class of service (“CoS”) Customer can allocate bandwidth for applications into the Mission Critical CoS according to the PNTM Service Option selected. Remaining 4G LTE bandwidth supports Best Effort CoS. Mission Critical CoS Applications Recommended for video, Voice over IP, interactive services, and other mission critical applications Best Effort CoS Applications Suitable for best effort applications (e.g. email, web browsing) PNTM Service Options: Enhanced(Entry Level) Premium (Mid Level) Public Safety (Highest Level) (Qualifying Public Safety NAICS Only) Monthly Access Fee (per line) Waived Waived Waived Mission Critical CoS Speeds Mapped Up to 0.5 Mbps Mapped Up to 2 Mbps Mapped Up to 2 Mbps Best Effort CoS Applications Speeds Remaining available 4G LTE bandwidth Remaining available 4G LTE bandwidth Remaining available 4G LTE bandwidth RF Priority on access network N/A N/A During heavy network usage periods Qualifying Public Safety NAICS: Public Safety Subscribers classified with the following NAICS codes, performing First Responder responsibilities only. The Public Safety PNTM service option is not an on demand service. The Public Safety PNTM must be provisioned on the account prior to use in the event of an emergency situation. • 621910 Ambulance Services • 922150 Parole Offices and Probation Offices • 922110 Courts • 922160 Fire Protection • 922120 Police Protection • 922190 Other Justice, Public Order, and Safety Activities • 922130 Legal Counsel and Prosecution • 928110 National Security • 922140 Correctional Institutions Notes. 4G LTE Private Network subscribers with unlimited data plans are ineligible for Private Network Traffic Management. This service is only available while on Verizon Wireless’ 4G network and is not available while roaming. VZ Private IP (MPLS) connectivity required. PNTM relies on customer’s applications (VoIP, video, etc.) to appropriately mark IP sessions in order to prioritize their application over the 4G LTE Private Network using Internet Protocol Differentiated Services Code Point (IP DSCP). PNTM 4G LTE device must be certified for use on the Verizon Wireless network (e.g. Open Development/Open Access certified, validated for Private Network and Private Network Traffic Management.) Zipit Now Messaging Solution* The calling plan below reflects the monthly access fee discount. No additional discounts apply. Please note a separate agreement must be negotiated and executed between the Customer and Zipit Wireless for the services* it will provide. Monthly Access Fee $15.00 (86024) Optional Feature Access Fee N/A Domestic MB Allowance 35 MB Overage Rate Per MB $0.10 MB Home Airtime/Min. Rate N/A Domestic Long Distance1 Included NOTE: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. Data usage is rounded to next full kilobyte at end of each billing cycle. Any unused portion of the monthly megabyte allowance is lost. This plan is not eligible for pooling or sharing of the megabyte allowance. *Please note installation, maintenance, warranty, customer service, billing, and pricing of Zipit equipment are provided separately, directly through Zipit Wireless. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 22 of 41 Verizon Mobile Device Management (MDM): Government Subscribers Only Verizon MDM is not eligible for the monthly access charge discount. No additional discounts apply. Verizon MDM Feature Access Fee Enterprise Firmware Over the Air (FOTA) Management $0.00 Device Diagnostics $0.99/device per month Broadband Hotspot Management $1.49/device per month OR $15.00/device per year Verizon Software Management $0.10/device per month OR Event-based pricing of $6 per device per update Notes: See attached Calling Plan and Feature Details for important information about calling plans, features and options. MDM supports select devices and operating systems and may require installation of a software agent. MDM features are billed separately; however, all supported options will appear and cannot be blocked. . Due to a number of features that require HTML 5, Verizon MDM requires Internet Explorer Version 10 and above to work efficiently. Push to Talk Plus License (PTT+): Government Subscribers Only Push to Talk License licenses are not eligible for any further discounts. Product Monthly Access Tablet $3.75 Inter-carrier (only any device) $3.75 3rd Party Web (HTML) API Client $3.75 Dispatch (License) Windows PC with PTT and mapping $22.50 Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. Push to Talk license only. Push to Talk Plus requires PTT+ capable device. Land Mobile Radio (LMR) for PTT+ : Government Subscribers Only Push to Talk Plus service is required. LMR licenses are not eligible for any further discounts. Product Monthly Access LMR Channel per account $0.00 Notes: Customer may have multiple channels. LMR FEATURE Only (When added to a Basic/Smartphone Device with PTT+) Basic/Smartphone Devices (FEATURE) $4.50 (85280) Notes: LMR cannot be added to any device without Domestic Push to Talk Plus. Push to Talk Plus requires PTT+ capable device. LMR License bundled with PTT+ License Tablet $8.25 Inter-carrier (any device) $8.25 3rd Party Web (HTML) API Client $8.25 LMR with Dispatch (for Windows PC with PTT+ and mapping) $27.00 Notes: Current coverage details can be found at www.verizonwireless.com. See attached Calling Plan and Feature Details for important information about calling plans, features and options. Land Mobile Radio (LMR) Interoperability works with all PTT+ capable devices. To use PTT+, Customer needs a PTT+ feature (or a software license for tablets and dispatch) and a PTT+ compatible device. An Internet Protocol (IP) link is required to connect Verizon’s PTT+ service with the customer’s LMR network through the “IP Gateway”. By purchasing the Land Mobile Radio for PTT+ Customer consents to the tracking of Land Mobile Radio for PTT+ equipment and must obtain authorized consent to tracking from all users and affected persons. No guarantee of accuracy of information transmitted, disclosed, displayed or otherwise conveyed or used. Service could be interrupted or disrupted due to atmospheric conditions, inaccurate ephemeris data and other factors associated with use of satellites and satellite data. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 23 of 41 MobileIron Enterprise Mobility Management License Fees On-Premise (Core) (Minimum 500+ MI Core Licenses Required for initial order/installation) A discount has been applied. MobileIron Licenses and Installation services are not eligible for any further discounts. On-Premise (Core) (Software Subscription License) Annual Subscription License Bundle per Device with Direct Support Annual Subscription License Bundle per User with Direct Support (3 Devices per User) License Type Description/SKU Monthly Cost Annual Cost Description/SKU Monthly Cost Annual Cost Silver MobileIron Core (on-premise) EMM Silver Bundle per Device SKU: MICore Silver Per Device $3.00 $36.00 MobileIron Core (on-premise) EMM Silver Bundle per User SKU: MICore Silver Per User $4.50 $54.00 Gold MobileIron Core (on-premise) EMM Gold Bundle per Device SKU: MICore Gold Per Device $4.50 $54.00 MobileIron Core (on-premise) EMM Gold Bundle per User SKU: MICore Gold Per User $6.75 $81.00 Platinum MobileIron Core (on-premise) EMM Platinum Bundle per Device SKU: MICore Platinum Per Device $5.63 $67.50 MobileIron Core (on-premise) EMM Platinum Bundle per User SKU: MICore Platinum Per User $8.63 $103.50 On-Premise (Core) (Software Perpetual License) Annual Subscription License Bundle per Device and Direct Support Annual Subscription License Bundle per User and Direct Support (3 Devices per User) Type Description/SKU Monthly Cost Annual Cost One-Time Cost Description/SKU Monthly Cost Annual Cost One-Time Cost Silver License MobileIron Core (on- premise) EMM Silver per Device Perpetual License SKU: MICore Silver Per Device Perpetual License - - $56.25 MobileIron Core (on- premise) EMM Silver per User Perpetual License SKU: MICore Silver Per User Perpetual License - - $82.50 Silver Support (REQUIRED) Maintenance Support for MobileIron Core (on- premise) EMM Silver per Device Perpetual License SKU: Maintenance Support MICore Silver Per Device Perpetual License $0.94 $11.25 - Maintenance Support MobileIron Core (on- premise) EMM Silver per User Perpetual License SKU: Maintenance Support MICore Silver Per User Perpetual License $1.38 $16.50 - Gold License MobileIron Core (on- premise) EMM Gold per Device Perpetual License SKU: MICore Gold Per Device Perpetual License - - $82.50 MobileIron Core (on- premise) EMM Gold per User Perpetual License SKU: MICore Gold Per User Perpetual License - - $123.75 Gold Support (REQUIRED) Maintenance Support MobileIron Core (on- premise) EMM Gold $1.38 $16.50 - Maintenance Support MobileIron Core (on- premise) EMM Gold per User Perpetual License $2.06 $24.75 - Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 24 of 41 per Device Perpetual License SKU: Maintenance Support MICore Gold Per Device Perpetual License SKU: Maintenance Support MICore Gold Per User Perpetual License Platinum License MobileIron Core (on- premise) EMM Platinum per Device Perpetual License SKU: MICore Platinum Per Device Perpetual License - - $105.00 MobileIron Core (on- premise) EMM Platinum per User Perpetual License SKU: MICore Platinum Per User Perpetual License - - $157.50 Platinum Support (REQUIRED) Maintenance Support MobileIron Core (on- premise) EMM Platinum per Device Perpetual License SKU: Maintenance Support MICore Platinum Per Device Perpetual License $1.75 $21.00 - Maintenance Support MobileIron Core (on- premise) EMM Platinum per User Perpetual License SKU: Maintenance Support MICore Platinum Per User Perpetual License $2.63 $31.50 - PROFESSIONAL SERVICES On-Premise (Core) Installation1 Support and Maintenance Included License Type Description/SKU One-time Cost2 Silver MICore Silver Installation MI-PS-DEPLOY1 $3,000.00 Gold MICore Gold Installation MI-PS-DEPLOY2 $6,000.00 Platinum MICore Platinum Installation MI-PS-DEPLOY3 $8,000.00 Note. Customer must choose one License Type; selection cannot be mixed and/or matched. 1A minimum of 500 MobileIron licenses are required for On-Premise (Core) for initial order for new MobileIron Customers. 2On-premise (Core) requires integration and setup with backend systems. Installation charges are prepackaged services providing access to a Professional Services Engineer to assist customer in installing/integrating the MobileIron platform. Pricing above applies to the installation of up to 5,000 MobileIron licenses. If Customer installation requires more than 5,000 MobileIron licenses, MobileIron Premium Implementation Services may apply which provides advisory services and an implementation engineer at a cost of $25,000.00 to manage large scale deployments; alternatively, Customer may use its own installation services. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 25 of 41 MobileIron Enterprise Mobility Management License Fees Cloud (Minimum 25+ MI Cloud Licenses Required for initial order/installation) A discount has been applied. MobileIron Licenses and Installation services are not eligible for any further discounts. Cloud License Annual Subscription License Bundle per Device with Direct Support Annual Subscription License Bundle per User with Direct Support (3 Devices per User) License Type Description/SKU Monthly Cost Annual Cost Description/SKU Monthly Cost Annual Cost Silver MobileIron Cloud EMM Silver Bundle per Device SKU: MICloud Silver Per Device $3.00 $36.00 MobileIron Cloud EMM Silver Bundle per User SKU: MICloud Silver Per User $4.50 $54.00 Gold MobileIron Cloud EMM Gold Bundle per Device SKU: MICloud Gold Per Device $4.50 $54.00 MobileIron Cloud EMM Gold Bundle per User SKU: MICloud Gold Per User $6.75 $81.00 Platinum MobileIron Cloud EMM Platinum Bundle per Device SKU: MICloud Platinum Per Device $5.63 $67.50 MobileIron Cloud EMM Platinum Bundle per User SKU: MICloud Platinum Per User $8.63 $103.50 PROFESSIONAL SERVICES Cloud Installation1 Support and Maintenance Included License Type SKU One-time Cost2 Silver MICloud Silver Installation MI-PS-DEPLOY1-MICLOUD $1,500.00 Gold MICloud Gold Installation MI-PS-DEPLOY2-MICLOUD $3,000.00 Platinum MICloud Platinum Installation MI-PS-DEPLOY3-MICLOUD $4,000.00 Note. Customer must choose one License Type; selection cannot be mixed and/or matched. 1A minimum of 25 MobileIron licenses are required for initial Cloud order for new MobileIron customers. 2MICloud requires integration and setup with backend systems. Installation charges are prepackaged services providing access to a Professional Services Engineer to assist customer in installing/integrating the MobileIron platform. Pricing above applies to the installation of up to 5,000 MobileIron licenses. If Customer installation requires more than 5,000 MobileIron licenses, MobileIron Premium Implementation Services may apply which provides advisory services and an implementation engineer at a cost of $25,000.00 to manage large scale deployments; alternatively, Customer may use its own installation services. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 26 of 41 MobileIron Enterprise Mobility Management: Government Subscribers On-Premise and Cloud Managed Service Features All features are available on both On-premise and Cloud managed installations. Included features are determined by MobileIron License Type Feature Functionality Included Features by License Silver Gold Platinum Apple DEP Supports Apple DEP (for iOS devices) Android for Work Supports AFW (on AFW enabled devices) Samsung KNOX Integrates with Samsung KNOX (KNOX sold separately) Email Access Secure Active Sync (all bundles) Divide PM (Gold/Platinum bundles for additional fee) Secure Enterprise Gateway (Sentry) In-line gateway that manages, encrypts, and secures traffic between the mobile device and back-end enterprise systems. (Requires user setup/installation) Apps@Work Enterprise App Store Basic Container Content Catalog Secure Doc catalog and publishing (basic content repository) 25 files/ 2MB each 50 files/ 25MB each Docs@Work Access, annotate and share documents from email, and on-premise management repositories AppConnect Containerization of Application at Rest App wrapping AppConnect ecosystem (3rd Party applications already compatible with MobileIron container) Web@Work Secure Browser Secure data in motion No VPN required Tunnel iOS per App VPN native functionality Help@Work Customizable app that enables screen sharing on device for trouble shooting for internal customer trouble shooting Identity@Work MobileIron’s ability to proxy Kerberos allows iOS devices that are not on the corporate network to use iOS 7 SSO without needing to expose the Kerberos Key Distribution Center (KDC) Service Connect Integrations ServiceNow integration to streamline IT workflows Notes. Customer may purchase MobileIron, Inc. (“MobileIron”) licenses and services (“MobileIron Services”), to be billed by Verizon Wireless, at the prices listed above. Verizon Wireless is not the licensor of the MobileIron Services and makes no representations or warranties whatsoever, either express or implied, with respect to them. MobileIron Services are manufactured by MobileIron, Inc. Any license for MobileIron Services must be obtained directly from MobileIron either upon purchase or installation of the MobileIron Services. MobileIron Services are subject to MobileIron’s terms and conditions and can be viewed here: www.mobileiron.com/legal. Verizon Wireless will direct MobileIron to fulfill Customer’s MobileIron Services order. Customer support for MobileIron Services must be obtained directly from MobileIron, Inc. If Verizon Wireless in its sole discretion determines that an inquiry from a subscriber is related to MobileIron Services and is not one concerning Equipment or Wireless Service, it may transfer the service request to appropriate MobileIron representatives. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 27 of 41 Canvas Canvas is a service that helps you replace paper forms and processes with efficient mobile business apps and forms to save money and time on data collection. Canvas offers 3 plans: Startup Business and Professional. Customers can only select one of the plans at a time (e.g. cannot mix plans on the same account.) Monthly or annual subscription available. Item Name Canvas Startup Canvas Business Canvas Professional Number of Users Supported 1 - 5 Unlimited Unlimited Monthly Service Fee $15.00 $25.00 $35.00 Annual Service Fee $156.00 $264.00 $372.00 Canvas Features Features Startup Business Professional Form Submissions Unlimited Unlimited Unlimited 3rd Party Cloud Integration App Builder PDF Designer Email/Chat Support Mobile and Web Editing Phone Support Dispatch Submission Status HIPPA Compliance Dedicated Support Representative Dispatch Scheduling Advanced Password Management Webservices Work flow Canvas Connect Notes: Products shown or referenced are provided by Canvas, a Verizon Partner Program Member, which is solely responsible for the representations and the functionality, pricing and service agreements. Canvas can connect to several different systems including cloud based and server based applications. Customer may purchase Canvas licenses and services (“Canvas Services”), to be billed by Verizon Wireless, at the prices listed above. Verizon Wireless is not the licensor of the Canvas Services and makes no representations or warranties whatsoever, either express or implied, with respect to them. Canvas Services are manufactured by Canvas Solutions, Inc. Any license for Canvas Services must be obtained directly from Canvas either upon purchase or installation of the Canvas Services. Canvas Services are subject to Canvas’ terms and conditions and can be viewed here: https://www.gocanvas.com/content/about-us/policy/. Verizon Wireless will direct Canvas to fulfill Customer’s Canvas Services order. Customer support for Canvas Services must be obtained directly from Canvas Solutions, Inc.. If Verizon Wireless in its sole discretion determines that an inquiry from a subscriber is related to Canvas Services and is not one concerning Equipment or Wireless Service, it may transfer the service request to appropriate Canvas representatives. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 28 of 41 IBM® MaaS360® Enterprise Mobility Management (EMM) Unified Endpoint Management (UEM) IBM MaaS360 Unified Endpoint Management License Fees A discount has been applied. IBM MaaS360 UEM Licenses and services are not eligible for any further discounts. IBM MaaS360 UEM offers a comprehensive, highly secure platform that manages and protects Devices and Things (smartphones, tablets, laptops, desktops,), People and Identity (authentication, authorization, Single Sign On, secure use access), Apps and Content combined with cognitive technology. Subscription License Bundle: per Device (One (1) license per device) Subscription License Bundle: per User (One (1) license per single user with multiple devices) License Type Description/SKU Monthly Cost Annual Cost Description/SKU Monthly Cost Annual Cost Essential EMM Essentials Suite Per Device License SKU: D1P3GLL (Monthly/Annual) $2.25 $27.00 EMM Essentials Suite Per User SKU: D1P3ILL (Monthly/Annual) $4.50 $54.00 Deluxe EMM Deluxe Suite Per Device License SKU: D1P3LLL (Monthly/Annual) $3.75 $45.00 EMM Deluxe Suite Per User License SKU: D1P3NLL (Monthly/Annual) $7.50 $90.00 Premiere EMM Premier Suite Per Device SKU: D1P3RLL (Monthly/Annual) $4.69 $56.25 EMM Premier Suite Per User License SKU: D1P3TLL (Monthly/Annual) $9.38 $112.50 Enterprise EMM Enterprise Suite Per Device SKU: D1P3WLL (Monthly/Annual) $6.75 $81.00 EMM Enterprise Suite Per User License SKU: D1P3YLL (Monthly/Annual) $13.50 $162.00 Additional UEM License Options License Type Description/SKU Monthly Cost Annual Cost Laptop Location Laptop Location SKU: D1AM8LL (Monthly/Annual) $0.38 $4.50 Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 29 of 41 IBM MaaS360 UEM Service Features Included features are determined by IBM MaaS360 UEM License Type Feature Functionality Included Features by License Essential Deluxe Premier Enterprise Device Management Manage smartphones, tablets & laptops featuring iOS, Android, Windows 10 Mobile, Windows 7, Windows 10 & macOS App Management Deploy custom enterprise app catalogs Blacklist, whitelist & require apps Patch and Update Management Identify & report on missing OS patches Schedule distribution and installation of Windows OS & macOS patches Identity Management Single sign-on & touch access Conditional access to trusted devices Identity federation with apps Advisor Improve IT operational efficiency by applying best practices & learning from industry & peer benchmarks Container App A separate, corporate mobile workplace for iOS, Android & Windows Productivity apps for work in one place Mobile Expense Management Monitor mobile data usage with real-time alerts Set policies to restrict or limit data & voice roaming Secure Mobile Email Contain emails, attachments & chat to prevent data leakage Enforce authentication, copy/paste & forwarding restrictions FIPS 140-2 compliant, AES-256 bit encryption for data at res Secure Mobile Chat Contain all chat mobile conversations and data Establish quick connections via corporate directory lookup OS VPN Leverages the hosted MaaS360 Certificate Authority to issue authentication certs Deployed alongside your corporate VPN solution Secure Browser A feature-rich web browser for secure access to intranet sites Define URL filters & security policies based on categories Block known malicious websites Gateway for Browser Enable MaaS360 Secure Mobile Browser to access enterprise intranet sites, web apps & network resources Access seamlessly & securely without needing a VPN session on mobile device Content Management Enforce authentication, copy/paste & view-only restrictions Gateway for Documents Secure access to internal files: e.g., SharePoint & Windows File Share App Security Enforce authentication & copy/paste restrictions Gateway for Apps Add per app VPN to Application Security to integrate behind-the-firewall data in private apps Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 30 of 41 Mobile Document Editor Create, edit & save content in a secure, encrypted container Mobile Document Sync Restrict copy/paste & opening in unmanaged apps Store content securely, both in the cloud & on devices Mobile Threat Management Detect and analyze mobile malware on compromised devices Automate remediation via near real-time compliance engine Take action on jailbroken/rooted devices over- the-air Notes. Customer may purchase IBM MaaS360 software licenses and services (“IBM MaaS360 Services”), to be billed by Verizon Wireless, at the prices listed above. Verizon Wireless is not the licensor of the IBM MaaS360 Services and makes no representations or warranties whatsoever, either express or implied, with respect to them. IBM MaaS360 Services are manufactured by International Business Machines Corporation, Inc. Any license for IBM MaaS360 Services must be obtained directly from IBM MaaS360 either upon purchase or receipt of notification from IBM of access to IBM MaaS360 Services. IBM MaaS360 Services are subject to IBM MaaS360’s terms and conditions and can be viewed here: http://www- 03.ibm.com/software/sla/sladb.nsf/sla/saas. Verizon Wireless will direct IBM MaaS360 to fulfill Customer’s IBM MaaS360 Services order. Customer support for IBM MaaS360 Services must be obtained directly from International Business Machines Corporation, Inc. If Verizon Wireless in its sole discretion determines that an inquiry from a subscriber is related to IBM MaaS360 Services and is not one concerning Equipment or Wireless Service, it may transfer the service request to appropriate IBM MaaS360 representatives. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 31 of 41 Samsung Knox Solutions KnoxTM is Samsung’s mobile device defense-grade security platform. The Knox Platform services multiple user segments through three separate offerings. Samsung Knox Premium is cloud-based device management that allows users to securely manage the business side of corporate devices. Samsung Knox Workspace, another offering, is an enterprise device container that acts as a secure and productive environment for work data and apps. Package Name Samsung Knox Premium Samsung Knox Workspace Target Audience SMB & Enterprise with basic security needs Enterprise, Government & Regulated Industries Components End-to-end secure mobile platform bundled with Samsung cloud EMM for device management Works on both Android and iOS ecosystems Knox container with essential policy controls Knox Workspace container with expanded and advanced policy controls IT Admin management of employee devices Enterprise can black list/white list apps within the Knox Workspace container Can manage VPN profiles in Knox Workspace container Notes: Customer may purchase Samsung Knox for Enterprise licenses and services (“Knox Services”), to be billed by Verizon Wireless, at the prices listed above. Verizon Wireless is not the licensor of the Knox Services and makes no representations or warranties whatsoever, either express or implied, with respect to them. Knox Services are manufactured by Samsung Electronics Co., Ltd. (“Samsung”). Any license for Knox Services must be obtained directly from Samsung either upon purchase or installation of the Knox Services. Knox Services are subject to Knox Services’ terms and conditions and can be viewed here: https://www.samsungknox.com/en/eula. Verizon Wireless will direct Knox Services to fulfill Customer’s Knox Services order. Customer support for Knox Services must be obtained directly from Samsung. If Verizon Wireless in its sole discretion determines that an inquiry from a subscriber is related to Knox Services and is not one concerning Equipment or Wireless Service, it may transfer the service request to appropriate Knox Services representatives. SAMSUNG Knox FOR ENTERPRISE Samsung Knox Premium Knox Premium is a cloud-based cross-platform enterprise mobility management solution combined with an on-device secure container for Samsung devices. Subscription Monthly (Month to month) 1 – Year Term (Paid in advance) 2 – Year Term (Paid in advance) License Fee $0.75 $9.00 $18.00 SKU# Knox Premium EMM - Monthly Knox Premium EMM - 1-Year Knox Premium EMM - 2-Year Samsung Knox Workspace Knox Workspace is an on-device container that isolates business applications and data from personal ones with government-grade security. Knox Workspace also provides enhanced granular controls over device features to enterprise IT administrators. Requires an additional MDM/EMM (like Knox Premium) to manage the container. Manage the container by integrating Knox IT policies with your existing MDM solution. Only available for Samsung Devices. Subscription Monthly (Month to month) 1 – Year Term (Paid in advance) 2 – Year Term (Paid in advance) License Fee $2.70 $32.40 $64.80 SKU# Knox Workspace - Monthly Knox Workspace - 1-Year Knox Workspace - 2-Year Samsung Knox Customization Knox Customization is a comprehensive set of tools and services that allow businesses to customize and deploy end-to-end mobile solutions. Transform Samsung devices into purpose-built solutions for any industry. *Requires upfront proof of device ownership. One Time Charge $3.00/per license Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 32 of 41 Verizon Auto Share (In-Vehicle) Plan* This plan is NOT eligible for monthly access fee discounts. Monthly Access Fee per Connection (device) Shared Data Allowance Data Overage Rate Included Domestic Text Message Allowance (non-shared)** Overage Rate per Text Message $25.00 (93074) 20 MB (82297) $10.00 per GB 20 $0.20 per message Notes: Coverage is only available in the United States and includes the Verizon Wireless 4G network; and the 3G and 3G Extended networks, while available. Current data coverage details and additional plan information can be found at www.verizonwireless.com. This plan is restricted for use on the Delphi Onboard device only. Components of this plan include Verizon Auto Share Platform access and an in-vehicle hardware device. *Voice calls cannot be placed or received on this plan, except for calls to 611 or 911 (these calls may be placed anywhere in the Nationwide Rate and Coverage Area). If the voice block feature is removed, there will be a $0.25 per minute charge for voice calls. ACCOUNT SHARING- Data Sharing: Sharing is only available among lines active on this plan. At the end of each bill cycle, any unused data allowances for lines sharing on the same account will be applied to the overages of the other lines on the same account beginning with the line with the lowest overage need. Plan changes may not take effect until the billing cycle following the change request. **Domestic text message allowance does not include picture or video messages. Custom Verizon Auto Share Components for Government Subscribers Verizon Auto Share Components are NOT eligible for discounts. Verizon M2M Management Center Included Mobile App Included QR Code1 Included Verizon Auto Share Included Delphi Onboard Device (OBD) SKU - ACT233LVWQE $199.00 Verizon Auto Share Security Kit2 (self-install kit) SKU – VZN-SECKIT $199.97 1The QR code is in the Equipment Guide and can be ordered as an accessory. 2Professional Installation services not available to government customers. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 33 of 41 Intrepid Networks®: Government Subscribers Intrepid Networks provides a real-time situational awareness solution for both public and private organizations. Intrepid Networks solution suite is suited for emergency response agencies within the public sector, as well as any private sector companies that require day-to-day operational efficiencies and tracking needs. The solution provides critical end-user-level situational awareness which substantially improves operational efficiency and reduces the communication loop. Package Name Description Cost Conditions Software INT_RESP_PKG INTREPID RESPONSE PACKAGE ANNUAL SUBSCRIPTION $90.00/yr - INT_ACT_PKG INTREPID ACTIVATE PACKAGE ANNUAL SUBSCRIPTION $27.00/yr - INT_RESP_ACT_PKG INTREPID RESPONSE PACKAGE & INTREPID ACTIVATE PACKAGE ANNUAL SUBSCRIPTION $103.50/yr - INT_EXT_GPS ADDITIONAL EXTERNAL GPS ASSET ANNUAL SUBSCRIPTION $90.00/yr - INT_RESP+_PKG INTREPID RESPONSE 'PLUS' PACKAGE ANNUAL SUBSCRIPTION $180.00/yr - VZ_PTT_PLUS VERIZON PTT+/KODIAK INTEGRATION YEAR SUBSCRIPTION $12.00/yr SKU cannot be purchased separately. Customer must purchase either Response, Activate, and/or Response+ solution. Also, customer must subscribe to Verizon’s PTT+ service. ES_CHAT_INTEGRATION ES-CHAT PTT INTEGRATION YEAR SUBSCRIPTION $72.00/yr SKU cannot be purchased separately. Customer must purchase either Response, Activate, and/or Response+ solution. Services ON_PREM_SETUP ON-PREMISES SETUP FEE ONE TIME AND ONE YEAR SUPPORT $20,000 One-time fee SKU cannot be purchased separately. Customer must purchase with either Response, Activate, and/or Response+ solution. ON_PREM_SUPPORT ON-PREMISES MAINTENANCE AND ONGOING SUPPORT ANNUAL FEE $10,000/yr - TRAINING_AT_INTREPID 1 TRAINING DAY AT INTREPID FACILITY $1,000/day 1 day of training at Intrepid Networks’ facility in Orlando, FL. TRAINING_AT_CUST 1 TRAINING DAY AT CUSTOMER'S SITE $2,500/day 1 Day of training at Customer’s site (includes travel expenses) Trials INT_RESP_TRIAL INTREPID RESPONSE PACKAGE 30 DAY FREE TRIAL $0.00 Free 30-Day trial for 5-10 licenses. Trial can only be utilized once per customer within a 6 month period. One per customer. Recurring trials are not permitted. INT_ACT_TRIAL INTREPID ACTIVATE PACKAGE 30 DAY FREE TRIAL $0.00 Free 30-Day trial for 5-10 licenses. Trial can only be utilized once per customer within a 6 Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 34 of 41 month period. One per customer. Recurring trials are not permitted. INT_RESP_ACT_TRIAL INTREPID RESPONSE PACKAGE & INTREPID ACTIVATE 30 DAY FREE TRIAL $0.00 Free 30-Day trial for 5-10 licenses. Trial can only be utilized once per customer within a 6 month period. One per customer. Recurring trials are not permitted. INT_RESP+_TRIAL INTREPID RESPONSE+ 30 DAY FREE TRIAL $0.00 Free 30-Day trial for 5-10 licenses. Trial can only be utilized once per customer within a 6 month period. One per customer. Recurring trials are not permitted. VZ_PTT_PLUS_TRIAL VERIZON PTT+/KODIAK INTEGRATION 30 DAY FREE TRIAL $0.00 Free 30-Day trial for 5-10 licenses. Trial can only be utilized once per customer within a 6 month period. One Trial per customer. Recurring trials are not permitted. Trial is free, but customer must subscribe to Verizon PTT+ monthly service. Cannot utilize VZ PTT Plus trial concurrently with ESChat trial. ES_CHAT_INTGR_TRIAL ESCHAT PTT INTEGRATION 30 DAY FREE TRIAL $0.00 Free 30-Day trial for 5-10 licenses. Trial can only be utilized once per customer within a 6 month period. One Trial per customer. Recurring trials are not permitted. Cannot utilize ESChat trial concurrently with PTT Plus trial. Customer may purchase Intrepid Networks licenses and services (“Intrepid Networks Services”), to be billed by Verizon Wireless, at the prices listed above. Verizon Wireless is not the licensor of the Intrepid Networks Services and makes no representations or warranties whatsoever, either express or implied, with respect to them. Intrepid Networks Services are manufactured by Intrepid Networks®. Any license for Intrepid Networks Services must be obtained directly from Intrepid Networks either upon purchase or installation of the Intrepid Networks Services. Intrepid Networks Services are subject to Intrepid Networks’ terms and conditions and can be viewed here: https://documents.intrepid-networks.com/Intrepid+Networks+Standard+Services+Agreement+Feb2017+Click+Through+Version.pdf. Verizon Wireless will direct Intrepid Networks to fulfill Customer’s Intrepid Networks Services order. Customer support for Intrepid Networks Services must be obtained directly from Intrepid Networks®. If Verizon Wireless in its sole discretion determines that an inquiry from a subscriber is related to Intrepid Networks Services and is not one concerning Equipment or Wireless Service, it may transfer the service request to appropriate Intrepid Networks representatives. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 35 of 41 Networkfleet Service Options for NVLPT The Service Options below have been discounted. No additional discounts apply. Service Options Purchase Cost 5200-GPS Only $17.00 5500-Diagnostics + GPS $19.00 H6100 Expressfleet $13.86 AssetGuard BX Non-Powered Asset Tracking $13.00 Connect $2.95 Customizable Update Rates (“CUR”) 1 Minute $0.00 Customizable Update Rates (“CUR”) 45 Seconds $1.00 Customizable Update Rates (“CUR”) 30 Seconds $2.00 Customizable Update Rates (“CUR”) 15 Seconds $3.00 Satellite $34.95 Data Services $0.00 Notes: Only one Hardware tier and one Service tier per Customer Account. Must be on a 12 month service agreement. Applicable taxes are not included in the above pricing. Any applicable taxes will be applied to the billing invoice. Additional terms & conditions apply to Networkfleet Service that are subject to review by end user government agencies. Customizable Update Rates (CUR). Authorized registered user may change a device update rate through the Self Service Portal (SSP) to 60 seconds at no additional cost. Please note, if the device update rate is changed to a 45 (CUR45), 30 (CUR30), or 15 (CUR15) second update rate, an additional charge per device would apply per the CUR list price for the selected rate. Networkfleet Device/Hardware Options for NVLPT The Devices/Hardware Options below have been discounted. No additional discounts apply. Device/Hardware Options Purchase Cost 5200-GPS Only $85.00 5500-Diagnostics + GPS $85.00 1009N2VD-6100 Expressfleet $55.00 AssetGuard BX Non-Powered Asset Tracking $150.00 Notes: Only one Hardware tier and one Service tier per Customer Account. Must be on a 12 month service agreement. Applicable taxes are not included in the above pricing. Any applicable taxes will be applied to the billing invoice. Item Number Accessory Price PARTS030 Reinstallation Kit $3.00 PARTS031 Tamper Resistant Zip Ties (100 per pack) $50.00 PARTS032 Combination Antenna A (standard) $30.00 PARTS037 AT-1400 Replacement Battery $45.00 PARTS039 AT-1400 Bracket $20.00 PARTS040 Window-Mount GPS Antenna Module (5500/5200) $35.00 PARTS041 Sensor Input Harness (5500/5200) $10.00 PARTS042 OBD-II Adapter Kit only including Core Connector & 8 Adapters (5500/5200) $20.00 PARTS043 6-pin Heavy Duty Harness (5500/5200) $35.00 PARTS044 9-pin Heavy Duty Harness with Square Flange (5500/5200) $35.00 PARTS045 9-pin Heavy Duty Harness with “D” Mount (5500/5200) $35.00 PARTS069 OBD Harness Extension $10.00 PARTS070 16-Pin Heavy Duty Harness $35.00 PARTS046 Universal Harness (5200) $10.00 PARTS047 Light Duty Harness plus OBD-II Adapter Kit (5500/5200) $35.00 PARTS090 Alternate Power/Ground Adapter (5200/5500) $20.00 PARTS053 Garmin FMI 45 Cable with Traffic for Connect $145.95 PARTS054 Garmin FMI Modified Cable $55.00 PARTS057 Pelican Micro Case for 5200 w/ 15’ Universal Harness $74.95 A-PEM001 PEM Port Expansion Module $140.00 PARTS059 Quick Install Harness $10.00 A-SAT001 Satellite Modem $550.00 PARTSS063 Satellite Antenna $50.00 PARTSS064 Satellite Harness $50.00 KIT-SAT Satellite Kit (includes one modem, antenna & harness) $650.00 PARTS065 Asset Guard BX Replacement Batter (1) $75.00 Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 36 of 41 PARTS066 Asset Guard BX Magnet Mount Kit (set of 4) *See Note $75.00 PARTS095 ID Reader Adapter Install Kit $30.00 PARTS060 Driver ID Reader $15.00 PARTS061 Driver ID Key $3.50 PARTS087 Audible Driver ID Alert $15.00 PARTS071 Bluetooth Extension $0.00 PARTS093 Universal Harness (6100) $10.00 PARTS058 Universal Harness $10.00 PARTS097 5000 9-Pin “D” Mount Harness Type 2 $35.00 PARTS098 5000 9-Pin Square Harness Type 2 $35.00 Notes: * Asset Guard BX Magnet Mount Kit includes CalAmp 133561 hardware and lanyard & CalAmp 1M101-MNC25 magnets (set of 4). Item Number Installation Type Pricing (per unit) Notes I-INSTALL-UNIT Base Installation – Plug/Play or 3 Wire $65.00 Base Installation includes 1 Device and 1 Harness D-INSTALL-UNIT Limited Lifetime Base Installation $2.00 Monthly Service Fee I-INSTALL-FMI Add-On to Base Installation (Garmin) $35.00 I-INSTALL-SENSOR Add-On to Base Installation (Sensor) $65.00 Sensor Install is $65.00 PER SENSOR I-INSTALL-AG Add-On to Base Installation (AssetGuard BX) $65.00 I-INSTALL-PMC Add-On to Base Installation (Pelican Micro Case) $35.00 I-INSTALL-PEM Add-On to Base Installation (Port Expansion Module) $35.00 I-INSTALL-SAT Add-On to Base Installation (Satellite) $35.00 I-INSTALL-DID Add-On to Base Installation (Driver ID) $35.00 I-INSTALL –BTE Add-On to Base Installation (Bluetooth) $35.00 D-INSTALL-BTE Limited Lifetime Add-On to Base Installation (Bluetooth) $1.00 Monthly Service Fee D-INSTALL-FMI Limited Lifetime Add-On to Base Installation (Garmin) $1.00 Monthly Service Fee D-INSTALL-SENSOR Limited Lifetime Add-On to Base Installation (Sensor) $1.00 D-INSTALL-AG Limited Lifetime Add-On to Base Installation (AssetGuard BX/PW) $2.00 D-INSTALL-PMC Limited Lifetime Add-On to Base Installation (Pelican Micro Case) $1.00 Monthly Service Fee D-INSTALL-PEM Limited Lifetime Add-On to Base Installation (Port Expansion Module) $1.00 Monthly Service Fee D-INSTALL-SAT Limited Lifetime Add-On to Base Installation (Satellite) $1.00 Monthly Service Fee D-INSTALL-DID Limited Lifetime Add-On to Base Installation (Driver ID) $1.00 Monthly Service Fee I-SWAP-UNIT Device Swap $65.00 I-TRANSFER-UNIT Device Transfer $65.00 I-REMOVAL-UNIT Removal $65.00 Removal of device. I-NOSHOW No Show $75.00 Applies per trip if the installer makes the trip and the designated vehicle is not available so the unit cannot be installed. I-TROUBLESHOOT- UNIT Troubleshoot; Mileage $65.00 Per Trip TRAINING-HALF ½ Day Installation Training $150.00 TRAINING-FULL Full Day Installation Training $300.00 Verizon Wireless Plan and Feature Details Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 37 of 41 Plans and Associated Charges: Billing, shipping and end-user address must be within an area where Verizon Wireless is licensed and provides service. Charges for calls will be based on the cell sites used, which may be outside the calling plan coverage area even when the subscriber is physically within the coverage area. Time of the call is based on the telephone switching office that carries the call, which may be different from the time of day shown on subscriber’s phone. Unused monthly minutes and/or Megabytes are lost. On outgoing calls, charges start when subscriber presses SEND or the call connects to a network, and on incoming calls, when the call connects to a network (which may be before it rings). A call may end several seconds after subscriber presses END or the call disconnects. Calls made on the Verizon Wireless network are only billed if they connect (which includes calls answered by machines). Billing for airtime and related charges may sometimes be delayed. Calls to "911" and certain other emergency services are toll-free and airtime-free. Airtime may be charged when dialing toll-free numbers. Anytime Minutes: Anytime Minutes apply when making or receiving calls from a calling plan’s rate and coverage area. Coverage information is available at www.verizonwireless.com. Airtime is rounded up to the next full minute. Allowance minutes/Megabytes are not transferable except as may be available on plans with sharing. In order to gain access to coverage in newly expanding markets, subscribers must periodically dial *228 to update roaming information from voice or Smartphone devices; from the VZAccess Manager, go into “Options” and click “Activation,” while in the National Enhanced Services Rate and Coverage Area every three months. This may alter the rate and coverage area. Automatic roaming may not be available in all areas and rates may vary. Roaming charges may be delayed to a later bill. Long Distance: Unlimited domestic long distance is included when calling from the plan’s rate and coverage area, unless otherwise specified in the plan. Unlimited Messaging: Unlimited Messaging is included with select plans and is available in the National Enhanced Services rate and coverage area in the United States. Messaging applies when sending and receiving (i) text, picture and video messages to and from Verizon Wireless and Non-Verizon Wireless customers in the United States, (ii) Text, picture, and video messages sent via email, (iii) Instant messages, and (iv) Text messages with customers of wireless carriers in Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands. Messaging is subject to Text, Picture, and Video Messaging Terms and conditions. Premium messages are not included. Friends & Family for Business: Calls directed to and received from an account’s listed Friends & Family numbers shall not use Monthly Anytime Voice Minutes. For Nationwide for Business plans with 900 minutes or more or 450 minute plan with the share option can add up to ten (10) Friends & Family numbers. Only calls from Nationwide Coverage Area to designated domestic landline or wireless numbers (excluding Directory Assistance, 900 numbers, or customer’s own wireless or Voicemail access numbers) may be added; all qualifying lines on an account share the same Friends & Family numbers, up to account’s eligibility limits; My Verizon, My Business Account or Verizon Enterprise Center is required to set up and manage Friends & Family numbers. Mobile to Mobile Calling: Mobile to Mobile Calling minutes apply when making calls directly to or receiving calls directly from another Verizon Wireless subscriber while in the Nationwide Rate and Coverage area. Mobile to Mobile calls must originate and terminate while both Verizon Wireless subscribers are within the Mobile to Mobile Calling area. Mobile to Mobile Calling is not available (i) with fixed wireless devices with usage substantially from a single cell site, (ii) for data usage including Push to Talk Plus calls, Picture or Video Messaging (iii) if Call Forwarding or No Answer/Busy Transfer features are activated, (iv) for calls to Verizon Wireless customers using any of the International services, (v) for calls to check Voice Mail, (vi) in those areas of Louisiana and Mississippi where the users roaming indicator flashes, (vii) in Canada and Mexico and (viii) to users whose current wireless exchange restricts the delivery of Caller ID And (viiii) for incoming calls if Caller ID is not present or Caller ID Block is initiated. Mobile to Mobile Calling minutes will be applied before Anytime Minutes. Night and Weekend Minutes: Apply to calls made in a calling plan’s rate and coverage area only during the following hours: 12:00 am Saturday through 11:59 pm Sunday and 9:01 pm to 5:59 am Monday through Friday. If both Night and Weekend and Mobile to Mobile Calling minute allowances apply to a given call, Mobile to Mobile Calling minutes will apply before Night and Weekend minutes. However, if either allowance is unlimited, the unlimited allowance will always apply first. Nationwide for Business Share Option: The Share Option is available to businesses with a minimum of five (5) Nationwide for Business lines on the same account with the share option. The Monthly Anytime Minutes of all lines on an account will be aggregated, and then allocated first to the line with the highest anytime minute usage, and then to the line with the next highest usage. Push to Talk Plus: Push to Talk Plus (PTT+) capable Equipment required. Push to Talk Plus capable Equipment can only be used with a Push to Talk Plus calling plan. Subscribers switching from a Push to Talk Plus Calling Plan to another calling plan may not be able to use certain Push to Talk Plus capable Equipment with the new plan. Push to Talk Plus calls may only be made with other Verizon Wireless Push to Talk Plus subscribers. Push to Talk Plus Subscribers may initiate or participate on a call, simultaneously, with as many as 250 total participants (total is limited to (50) if interoperating between 3G and 4G participants). Administrators can be designated to manage the Push to Talk contact lists via a single website interface with a single user name/password. . Existing Push to Talk Subscriber Equipment may require a software upgrade to use Push to Talk Plus or replacement with a Push to Talk Plus capable device. Push to Talk Plus is only available within the National Enhanced Services Rate and Coverage Area and WiFi access points. There will be a delay from the time a Push to Talk Plus call is initiated until the Push to Talk Plus call is first received by the called party. If an incoming voice call is received while on a Push to Talk Plus call the voice call may be answered and the Push to Talk Plus placed on hold. If an incoming Push to Talk Plus call is received while on a Push to Talk Plus call the PTT call icon can be selected to connect to the Push to Talk Plus call. If the incoming voice or Push to Talk Plus call is not answered a missed call alert will display. Network registration information will be sent to the Equipment each time it is powered on in the National Enhanced Services Rate and Coverage Area, each time the Subscriber travels into the National Enhanced Services Rate and Coverage Area, and every 12 hours if the Subscriber stays within the National Enhanced Services Rate and Coverage Area. While the updated network registration information is being sent to the Equipment, incoming voice calls will go directly to voice mail. Contact list cannot be modified from certain Equipment. Subscriber cannot prevent others who have the Subscriber’s MTN from entering the MTN into their Push to Talk contact list. Only one person can speak at a time during a Push to Talk Plus call. In-Call Talker Override (Talker Priority) allows a pre-determined user priority to take the floor to communicate urgent message over participant. Push to Talk Plus services cannot be used for (i) access to the Internet, intranets or other data networks, except as the device’s native applications & capabilities permit, (ii) any applications that tether Equipment to laptops, personal computers or other devices for any purpose. Please visit our website www.verizonwireless.com for additional Push to Talk Plus information. International Long Distance: You need International Eligibility to make international calls to most countries, but you can make calls to some North American destinations without it. Additional surcharges may apply when calling certain countries; see verizonwireless.com/International for details. Verizon Wireless International Long Distance Value Plan: International Eligibility required to call most countries. Value Plan feature is not available on all Plans. Rates are subject to change without notice. Standard International Long Distance rates apply in addition to airtime charges per your Plan on calls made from the Verizon Wireless network. Rates and service availability may vary when your phone’s banner displays “Extended Network.” Value Plan rates apply only on calls to Value Plan Countries made from your Plan’s Rate and Coverage Area. If a subscriber’s Plan’s Rate and Coverage Area includes calls to any Value Plan country, those calls will be billed per the Plan. Except when roaming on another carrier’s network, in which case that carrier's rates, taxes and surcharges apply. For Value Plan subscribers, calls made from the Verizon Wireless network to countries not included in the Value Plan will be billed at standard International Long Distance rates. Additional surcharges may apply when calling certain destinations, see www.verizonwireless.com/international for details. International Roaming: Some services, such as premium text messaging, directory assistance, entertainment lines and third-party services, may be available, and charges for these services will be billed (along with applicable toll charges) in addition to roaming rates. Message-waiting-indicator service is not available where Text Messaging is not available. When using International Phone, or International Data services, or if you subscribe to a Nationwide Plus Canada or Nationwide Plus Mexico Plan, and you’re roaming near country borders, calls may be carried by a cell site located in a neighboring country and billed at that country’s Verizon Wireless Plan and Feature Details Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 38 of 41 rates. Verizon Wireless will terminate your service for good cause if less than half of your voice or data usage over three consecutive billing cycles is on the Verizon Wireless National Enhanced Services Rate and Coverage Area. See verizonwireless.com/International for rates and destinations, which are subject to change without notice. International Eligibility required for GSM roaming, and for roaming in many destinations. Rates, terms and conditions apply only when roaming on participating GSM networks in published destinations. Availability of service, calling features, and Text messaging varies by country and network and may be restricted without notice. You must add International Eligibility to your account to roam in many destinations. Visit verizonwireless.com/naroaming. By using Equipment outside the United States, subscriber is solely responsible for complying with all applicable foreign laws, rules and regulations (“Foreign Laws”), including Foreign Laws regarding use of wireless phones while driving and use of wireless camera phones. Verizon Wireless is not liable for any damages that may result from subscriber’s failure to comply with Foreign Laws. Roaming in GSM countries: GSM International Phone, activated in the United States with compatible subscriber Identity Module (SIM) card required. Rates, terms and conditions apply only when roaming on participating GSM networks in published International Phone countries. Service may be available in additional countries, but airtime rates, availability of calling features, and ability to receive incoming calls (including return calls from emergency services personnel) may be restricted. See www.verizonwireless.com for coverage and airtime rates. Service in certain countries may be blocked without prior notice. Where Text messaging is available, Customer will be charged $0.50 for each message sent and $0.05 for each message received. Text messaging rates are subject to change. Text messages may be sent only to MTNs of (i) Verizon Wireless customers, and (ii) customers of foreign wireless carriers that participate in international text messaging. Check www.vtext.com for the most current list of participating foreign carriers. Data Services: Verizon Wireless charges you for all data and content sent or received using our network (including any network overhead and/or Internet Protocol overhead associated with content sent or received), as well as resolution of Internet Protocol addresses from domain names. Sending or receiving data using a virtual private network (VPN) involves additional VPN overhead for which you will be charged. Please note that certain applications or widgets periodically send and receive data in the background, without any action by the user, and you will be billed for such data use. Applications may automatically re-initiate data sessions without you pressing or clicking the SEND or connect button. Data sessions automatically terminate after 24 hours. A data session is inactive when no data is being transferred. Data sessions may seem inactive while data is actively being transferred, or may seem active when the data is actually cached and data is not being transferred. If you have a Data Only plan and use voice service, domestic voice calls will be billed at $0.25/minute. Verizon Wireless strives to provide customers with the best experience when using our network, a shared resource among tens of millions of customers. To further this objective, Verizon Wireless has implemented Network Optimization Practices designed to ensure that the overwhelming majority of data customers aren’t negatively impacted by the inordinate data consumption of a few users. The reduction can last for the remainder of the current bill cycle and the immediately following bill cycle to ensure high quality network performance for other users at locations and times of peak demand. For a further more detailed explanation of these techniques please visit www.verizonwireless.com/networkoptimization. Data transfer amounts will vary based on application. If you download an audio or video file, the file may be downloaded in sections or in its entirety; data charges will apply to the portion downloaded, regardless of whether you listen to or watch all of it. You may access and monitor your own data usage during a particular billing period, including during the Return Period, by accessing My Verizon online or by contacting Customer Service. Data Services: Permitted Uses: You can use Verizon Wireless Data Services for accessing the Internet and for such uses as: (i) Internet browsing; (ii) email; (iii) intranet access (including accessing corporate intranets, email and individual productivity applications made available by your company); (iv) uploading, downloading and streaming of audio, video and games; and (v) Voice over Internet Protocol (VoIP). Data Services: Prohibited Uses. You may not use our Data Services for illegal purposes or purposes that infringe upon others' intellectual property rights, or in a manner that interferes with other users' service, that violates trade and economic sanctions and prohibitions as promulgated by the Departments of Commerce, Treasury or any other U.S. government agency, that interferes with network's ability to fairly allocate capacity among users, or that otherwise degrades service quality for other users. Examples of prohibited usage include: (i) server devices or host computer applications that are broadcast to multiple servers or recipients such that they could enable “bots” or similar routines (as set forth in more detail (ii) below) or otherwise denigrate network capacity or functionality; (ii) “auto-responders,”“cancel-bots,” or similar automated or manual routines that generate amounts of net traffic that could disrupt net user groups or e-mail use by others; (iii) generating “spam” or unsolicited commercial or bulk e-mail (or activities that facilitate the dissemination of such e-mail); (iv) any activity that adversely affects the ability of other users or systems to use either Verizon Wireless’ services or the Internet-based resources of others, including the generation of dissemination of viruses, malware, or “denial of service” attacks; (v) accessing or attempting to access without authority, the information, accounts or devices of others, or to penetrate, or attempt to penetrate Verizon Wireless’ or another entity’s network or systems; or (vi) running software or other devices that maintain continuous active Internet connections when a computer’s connection would otherwise be idle or “any keep alive” functions, unless they adhere to Verizon Wireless” requirements for such usage, which may be changed from time to time. Verizon Wireless further reserves the right to take measures to protect our network and other users from harm, compromised capacity or degradation in performance. These measures may impact your service, and Verizon Wireless reserves the right to deny, modify or terminate service, with or without notice, to anyone Verizon Wireless believes is using Data Services in a manner that adversely impacts the Verizon Wireless network. Verizon Wireless may monitor your compliance, or other subscribers’ compliance, with these terms and conditions, but Verizon Wireless will not monitor the content of the communications except as otherwise expressly permitted or required by law. [See verizonwireless.com/privacy] Unlimited Data Plans and Features (such as NationalAccess, BroadbandAccess, Push to Talk Plus, and certain VZEmail services) may ONLY be used with wireless devices for the following purposes: (i) Internet browsing; (ii) email; and (iii) intranet access (including access to corporate intranets, email, and individual productivity applications like customer relationship management, sales force, and field service automation). The Unlimited Data Plans and Features MAY NOT be used for any other purpose. Examples of prohibited uses include, without limitation, the following: (i) continuous uploading, downloading or streaming of audio or video programming or games; (ii) server devices or host computer applications, including, but not limited to, Web camera posts or broadcasts, automatic data feeds, automated machine–to–machine connections or peer–to–peer (P2P) file sharing; or (iii) as a substitute or backup for private lines or dedicated data connections. This means, by way of example only, that checking email, surfing the Internet, downloading legally acquired songs, and/or visiting corporate intranets is permitted, but downloading movies using P2P file sharing services and/or redirecting television signals for viewing on laptops is prohibited. For individual use only and not for resale. We will protect our network from harm, which may impact legitimate data flows. We will limit throughput or amount of data transferred exceeding 25 GB in any given billing cycle on any line, in any given billing cycle, for all additional usage for the remainder of the then-current bill cycle for the line that exceeds the data usage, and reserve the right to deny or terminate service, without notice, to anyone we believe is using an Unlimited Data Plan or Feature in any manner prohibited above or whose usage adversely impacts our network or service levels. Anyone using more than 25 GB per line in a given billing cycle is presumed to be using the service in a manner prohibited above, and we reserve the right to immediately terminate the service of any such person without notice. We reserve the right to adjust data throughput limitation thresholds to as low as 5GB in with prior written notice. We also reserve the right to terminate service upon notification to the customer. Unlimited VZAccess and VZEmail: NationalAccess, BroadbandAccess, and InternationalAccess data sessions may be used for the following purposes: (i) Internet browsing, (ii) e-mail, and (iii) intranet access (including access to corporate intranets, e-mail and individual productivity applications like customer Verizon Wireless Plan and Feature Details Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 39 of 41 relationship management, sales force and field service automation). Unlimited VZAccess, VZEmail and Push to Talk Plus services cannot be used (i) for uploading, downloading or streaming of movies, music or games, (ii) with server devices or with host computer applications, other than applications required for BlackBerry or Wireless Sync service, including, but not limited to, Web camera posts or broadcasts, automatic data feeds, Voice over IP (VoIP), automated machine-to-machine connections, or peer-to-peer (P2P) file sharing, or (iii) as a substitute or backup for private lines or dedicated data connections. Additionally, Unlimited VZEmail services cannot be used for, (i) access to the Internet, intranets or other data networks, except as the Equipment’s native applications and capabilities permit, or (ii) for any applications that tether Equipment to laptops or personal computers other than for use of the Wireless Sync or BlackBerry Solutions. Unlimited BroadbandAccess and NationalAccess data sessions automatically terminate after 2 hours of inactivity, unless Subscriber has Mobile IP (MIP) capable Equipment Data Roaming: In the Canadian Broadband and Canadian Enhanced Services Rate and Coverage Areas, usage will be charged at a rate of $0.002/KB or $2.05/MB. In the Mexican Enhanced Services Rate and Coverage Area, usage will be charged at a rate of $0.005/KB or $5.12/MB. In other available countries, usage will be billed at a rate of $0.02/KB or $20.48/MB. International Eligibility is needed to roam in many destinations. Current coverage details, and list of Other Available Countries can be found at www.verizonwireless.com/International. International Data Optional Features: International PC Card required for international use. International PC Cards will not work in the United States or Canada and International Data Optional Features subscribers will need a NationalAccess or Mobile Broadband PC card for domestic use. The domestic and International PC Cards cannot be used at the same time. Prior to leaving the United States, subscribers must install International Data Optional Features VZAccess ManagerSM and run the OTA wizard. International Data Optional Features subscribers must activate and update their Preferred Roaming lists while in the National Enhanced Services Rate and Coverage Area every three months. Verizon Wireless reserves the right to terminate the service of any subscriber whose total usage is less than half on the Verizon Wireless National Enhanced Services Rate and Coverage Area over three consecutive billing cycles. . International Email SIM Cards: SIM Cards are available for use with your International PC Card, International Smartphone, or International Phone. Verizon Wireless is not responsible for any unauthorized use of subscriber’s SIM Cards and subscriber must safeguard security codes. Placing your InternationalEmail SIM in any other non BlackBerry or Smartphone device could result in additional charges or termination of service. Upon termination of service, subscriber must destroy SIM Card. M2M Data Plan Terms and Conditions A data session is inactive when no data is being transferred, and may seem inactive while data is actively being transferred to a device, or seem active when actually cached and not transferring data. Customer must maintain virus protection when accessing the service and is responsible for all data sent and received including “overhead” (data that is in addition to user-transmitted data, including control, operational and routing instructions, error-checking characters as well as retransmissions of user-data messages that are received in error) whether or not such data is actually received. Verizon Wireless will not be liable for problems receiving Service that result from Customer’s device. Megabyte (MB) Data Plans: M2M data usage is rounded to next full kilobyte at end of each billing cycle. Any unused portion of the megabyte allowance is lost. Equipment will not indicate kilobyte usage. Data Roaming: In the Canadian Broadband and Canadian Enhanced Services Rate and Coverage Areas, usage will be charged at a rate of $0.002/KB or $2.05/MB. In the Mexican Enhanced Services Rate and Coverage Area, usage will be charged at a rate of $0.005/KB or $5.12/MB. For more information on roaming in Canada and Mexico, visit verizonwireless.com/naroaming. In the Bermuda, China, Dominican Republic, Guam, India, Israel, Saipan and South Korea Enhanced Services Rate and Coverage Areas, usage will be billed at a rate of $0.02/KB or $20.48/MB. I-Dial is needed to roam in many destinations. Only the Canadian Broadband Rate and Coverage Area supports EV-DO. M2M Data Plan Share Options Share Options: Sharing is available only among Government Subscribers on applicable M2M Low Usage and High Usage calling plans. Account Share: Customer may activate up to 15 share groups per account. Sharing is available only among M2M Lines on the Mobile Broadband M2M Account Share Plans on the same billing account, in the same usage group (Low Usage and High Usage plans cannot share with each other). Unused KBs will be distributed to M2M Lines with an overage on an as needed basis to M2M Lines on the same billing account that have exceeded their MB allowance during the same monthly billing period. At the end of each bill cycle any unused KBs allowances will be applied to the overages of the other M2M Lines on the same account beginning with the line with the lowest overage need until depleted. Customers subscribing to Mobile Broadband M2M Account Share Plans will be billed on separate billing accounts and invoices from Subscribers to the Mobile Broadband M2M Profile Share Plans. Profile (Multi-Account) Share: Customer may activate one (1) share group per profile (Low Usage and High Usage plans cannot share with each other); however, customer may have multiple bill accounts on the same profile. Sharing is available only among M2M Lines on the Mobile Broadband M2M Multi-Account Share Plans on the same profile, in the same usage group. Each sharing M2M Lines unused KBs will pass to other sharing M2M Lines that have exceeded their data allowance during the same monthly bill cycle. Unused KBs will be distributed proportionally as a ratio of the KBs needed by each applicable M2M Line to the total KBs needed by all sharing M2M Lines on the same profile. Customers subscribing to Mobile Broadband M2M Profile Share Plans will be billed on separate billing accounts and invoices from Subscribers to the Mobile Broadband M2M Account Share Plans. Note: 1A profile is defined as a Customer’s overarching account of record under which Customer may have multiple billing accounts Verizon Wireless Private Network Terms and Conditions Verizon Wireless Private Network Service (“Private Network”): Private Network extends Customer’s IP network to its wireless equipment by segregating the data between such devices and Customer’s servers from the public Internet (the “Internet”). Customer’s use of Private Network is subject to the Private Network Roles and Responsibilities Customer Guidelines, which are available from your Sales representative. Customer Minimum Line Requirement: Customer must maintain a minimum of 100 Machine-to-Machine lines at all times during the term of its Agreement in order to remain eligible for Private Network. If Customer falls below the 100-line minimum, Verizon Wireless reserves the right to discontinue Private Network for non-use. Connection to Verizon Wireless Facility: Customer must establish a direct-connect circuit from its facilities to Verizon Wireless’s facilities by the use of Virtual Private Network, Verizon Private IP, or Fixed End System connections. Customer is solely responsible for making arrangements with a local access provider for installation and ongoing maintenance of such a connection, with sufficient data throughput to meet Customer’s anticipated data needs. Customer is also responsible for all charges incurred directly or through a third party associated with establishing the connection, as well as for accessing Private Network, including Internet access fees, hardware, software, license fees, and telecommunications charges. Customer Provided Equipment (“CPE”): Customer must procure routers and any other CPE that meet Verizon Wireless requirements for Private Network connectivity. Customer is responsible for ensuring any CPE meets its data capacity and throughput needs. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 40 of 41 IP Addresses: Customer is responsible for procuring private IP addresses, which must be communicated to Verizon Wireless during implementation. Private Network supports static and dynamic addressing for 1X service and/or EVDO service; 4G LTE service; and Internet addressing system Internet Protocol version 4. Direct Internet access requires static IP addressing. Dynamic Mobile Network Routing (“DMNR”): DMNR allows configuration of Private Network for dynamic routing to the subnets it serves (up to eight) to other devices on Customer’s network and as support for mobile or stationary routers. DMNR is based off Mobile IPv4-based Network Mobility protocol and requires the router to be configured to support this capability. Customer is responsible for any charges associated with the customization of its CPE to support DMNR. Verizon Wireless Private Network Traffic Management Private Network Traffic Management (PNTM): PNTM allows Customer to configure its Private Network to allow differentiated Quality of Service (QoS) by application over Verizon Wireless’s LTE network using standards-based IP packet marking. Customer can identify applications on its 4G LTE devices to get priority QoS over its Private Network. Verizon Wireless makes no guarantee of PNTM bandwidth allocations, which are subject to the limitations of wireless service availability as detailed in the Agreement. Customer is responsible for any charges associated with the customization of its CPE to support PNTM. PNTM for Public Safety: Eligible public safety accounts can take advantage of priority access to a data channel over the Wireless Service for its data traffic during times of heavy network demand. While PNTM for Public Safety enables a dedicated data channel, Verizon Wireless makes no guarantee of Wireless Service availability, which is subject to the limitations of wireless service availability as detailed in the Agreement. PNTM for Public Safety is only available to Customers approved by Verizon Wireless that qualify as Public Safety Entities classified by the following NAICS codes a) 621910 Ambulance Services; b) 922110 Courts; c) 22120 Police Protection; d) 922130 Legal Counsel and Prosecution; e) 922140 Correctional Institutions; f) 922150 Parole Offices and Probation Offices; g) Fire Protection; h) 922190 Other Justice, Public Order, and Safety Activities or i) National Security. Customer Private Network Contact: Customer must designate a Private Network representative and provide contact information, including a phone number and email address. The Private Network contact will work with the Verizon Wireless solution engineer through the Private Network implementation and testing processes detailed below. The contact shall be available during business hours and any other time period that Customer utilizes Private Network for the purpose of assisting to resolve service problems and trouble shooting. Private Network Implementation and Testing: Verizon Wireless will implement Customer’s Private Network, which requires Customer to a) provide any information (e.g., account numbers, IP address ranges, router/CPE information) necessary to compete the Private Network Connectivity Form; b) participate in a Private Network turn-up call to ensure that CPE is properly configured to support the Private Network connection; and c) participate in a Solution Validation call to confirm that Private Network is working properly from Verizon Wireless to Customer’s applications. Wireless Devices/Network Access: Customer must use Private Network-compatible end-user Equipment and at Customer’s expense must submit any devices not identified as Private Network compatible to Verizon Wireless, for network testing and Private Network certification. Private Network functionality is available on the Verizon Wireless 3G and 4G data network, subject to the limitations defined in this Addendum. While Private Network functionality may also be available on the networks of Verizon Wireless’ domestic and international roaming partners, Verizon Wireless makes no representation of Private Network availability or reliability on such networks. Permitted Use/Fraud: Customer shall use Private Network only for lawful purposes and shall not send or enable via the Private Network connection, by way of example, any SPAM, viruses, worms, trap doors, back doors or timers, nor shall Customer engage in any mail-bombing or spoofing via Private Network. Customer is responsible for the security of its network and end-user devices and is responsible for any unauthorized access to the Private Network. Verizon Wireless will treat any traffic over the Private Network as authorized by Customer. Verizon Wireless reserves the right but is not obligated to filter fraudulent usage. Maintenance/Service Changes/Termination of Private Network Service: Verizon Wireless may limit access to Private Network in order to perform maintenance to the service and will use reasonable efforts to provide Customer with prior notice of such maintenance. With reasonable advance notice, Verizon Wireless has the right to modify and reconfigure Private Network as it deems necessary to enhance Customer’s experience or to safeguard the Verizon Wireless network. In addition, VERIZON WIRELESS CAN WITHOUT NOTICE LIMIT, SUSPEND OR CANCEL CUSTOMER’S ACCESS TO OR USE OF PRIVATE NETWORK IF CUSTOMER VIOLATES THE RESTRICTIONS OF THIS ADDENDUM OR FOR GOOD CAUSE. Good cause includes (a) breach of the terms of this Addendum or the Agreement; (b) unlawful use of Private Network; (c) using Private Network in a way that adversely affects the Verizon Wireless network or Verizon Wireless’ customers; (d) breach of an obligation of Customer to comply with any applicable federal, state and local government laws, rules and regulations, industry practices, third-party guidelines, or other applicable policies and requirements; (e) the suspension or termination by any governmental body of competent jurisdiction of Customer’s service or the institution of a requirement, ruling or regulation that conflicts with this Addendum; or (f) for operational or governmental reasons. No Warranties: Verizon Wireless makes no warranties, express or implied, with respect to Private Network, which it provides to Customer on an “AS IS” basis “WITH ALL FAULTS” and “AS AVAILABLE.” The accuracy, timeliness, completeness, suitability, or availability of any aspect of Private Network cannot be guaranteed. THE IMPLIED WARRANTIES OF MERCHANTABILTY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT ARE HEREBY EXPRESSLY DISCLAIMED IN THEIR ENTIRETY. The foregoing limitations, exclusions and disclaimers shall apply to the maximum extent permitted by applicable law. Verizon Wireless makes no representation that it supports any service levels with respect to the availability, performance, capacity, uptime or any similar metrics of Private Network. Subject to the Agreement: The terms of this Addendum supplement the Agreement. The terms of the Agreement are applicable to Customer’s use of Private Network. If there are any inconsistencies between the terms of this Addendum and the Agreement, the terms of this Addendum shall control with respect to Private Network. Verizon Wireless offers this pricing utilizing the terms and conditions of the NASPO ValuePoint (NVLPT) Contract #1907, Addenda and Attachments can be found on www.naspovaluepoint.org site for your consideration and review. Your State may also have a NVLPT Participating Addendum which may be available on your State website. Alternatively, you may contact your local Verizon Government Sales representative for additional information. v.122017 (22%) Page 41 of 41 Regulatory Surcharges and Fees Verizon Wireless’ pricing does not include federal, state, local or foreign fees, assessments or other charges (collectively “fees”), which must be billed based on the jurisdiction in which the subscriber’s cellular number is set up and located. Fees vary by state and local areas and are subject to change without notice. Verizon Wireless cannot provide a comprehensive list of all charges and regulatory fees required and assessed when using a wireless device because they vary greatly from one jurisdiction to another. In addition to taxes, surcharges and fees that we are required to collect, we will also collect charges to recover or help defray costs of taxes and governmental surcharges and fees imposed on us, and costs associated with governmental regulations and mandates on our business. These charges include, among others, a Regulatory Charge and a Federal Universal Service Charge, and are described below in more detail. These charges are Verizon Wireless charges, not taxes, and are subject to change. Because these charges are not taxes, your tax exemptions, if any, will not apply to these charges. Federal Universal Service Charge Wireless carriers are assessed by the federal government to fund the delivery of universally-affordable telecommunications and information services under the Federal Universal Service Fund (FUSF) program. The Federal Universal Service Charge (FUSC) collected by Verizon is a percentage of the customer's monthly bill and is used to defray the costs of the FUSF. The FUSC is collected on most items on the bill, other than data charges for wireless broadband Internet access, equipment charges and taxes. As of January 1, 2018, the basic FUSC rate is 19.5% and changes quarterly. The FUSC rate for bundled minute plans is 5.08% if the customer does not exceed the included number of minutes. The 19.5% rate applies to long distance interstate calls that exceed the customer's included bundle of minutes. Other services, such as VOIP, are charged a lower FUSC rate. • Cellular Access for voice calling plans (only on first 79% of this item) • Verizon Wireless Toll • Roaming Charges • Activation Charges • Re-connect fees • Landline Connect Fee • TXT Messaging monthly service • TXT Messaging usage • Airtime usage for voice calls • Mobile to Mobile feature • Nights and Weekends feature • Toll free feature The quarterly percentage rate described above for the FUSC is applied in our billing system. Verizon Wireless also imposes state universal service charges. These charges vary by jurisdiction and are subject to change depending on changes in the state universal service impositions on Verizon Wireless. Regulatory Charge The Regulatory Charge is an assessment that helps defray our ongoing costs of complying with various governmental mandates and assessments. Examples include: • The cost of the license fees assessed by the FCC. • Costs assessed by the FCC to administer local number portability requirements. This charge is subject to change over time upon notice and is taxable in most jurisdictions. The Regulatory Charge is $0.02 per line for wireless Mobile Broadband Internet access and Machine to Machine devices and $0.21 per line for all other services. Regulatory fees impacting the wireless industry are constantly evolving and are subject to change without notice. For more information you can visit the FCC’s website at www.fcc.gov. City of Palo Alto (ID # 9537) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/1/2018 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Approval of the 2017 Annual Power Source Disclosure Report Title: Adoption of a Resolution Approving and Attesting to the Veracity of the 2017 Annual Power Source Disclosure Report From: City Ma nager Lead Department: Utilities Recommendation Staff recommends that the City Council adopt a resolution (Attachment A) approving the 2017 annual Power Source Disclosure report (Exhibit A to Attachment A) and attesting to its veracity. Background Senate Bill 1305 (SB 1305) was approved in 1997 to ensure that all retail suppliers of electricity disclose to consumers the sources of energy used to provide the electric service in an accurate, reliable and easy to understand manner. The SB 1305 Report is co mmonly referred to as the Power Source Disclosure (PSD) report. The City of Palo Alto submits an annual PSD Report to the California Energy Commission (CEC) by June 1st of each year. The information contained in this reporting is used to prepare the annual Power Content Label (PCL), which is mailed to our customers around October of each year and posted on the City’s website at https://www.cityofpaloalto.org/gov/depts/utl/residents/resources/pcm/power_content_label. asp and on the CEC’s website at http://www.energy.ca.gov/pcl/labels/. Discussion In 2017, the CEC regulation1 implementing SB 1305 was updated with the changes retroactively effective to October 2016. The changes included a provision that requires utilities to engage a third-party certified public accountant to perform an audit to verify the specific purchases, resales, and self-consumption of energy by fuel type.2 The regulation includes an exemption from the audit requirement for publicly owned electric utilities, if the governing board of the utility “approves at a public meeting the submission to the Energy Commission of an attestatio n 1 “Power Source Disclosure Program Regulations,” California Energy Commission, CEC-300-2017-048, October 2016. Available at: https://www.energy.ca.gov/pcl/documents/. 2 California Code of Regulations Title 20, Section 1394(b)(1). City of Palo Alto Page 2 of the veracity of the annual report.”3 This audit exemption, however, can only be applied to one electric service product offered by the utility; any additional products are required to satisfy the audit requirement. In Palo Alto’s case, this means that the Council can attest to the veracity of the City’s annual report for the City’s standard power mix, as described above. However, the City’s voluntary PaloAltoGreen product, which is available to all commercial customers and allows them to pay a small premium in order to receive the City’s standard power mix plus additional wind and solar renewable energy certificates (RECs), is subject to the audit requirement. The PaloAltoGreen program is audited annually by a third-party certified public accountant in order to maintain the Program’s Green-e certification, and this audit is performed in accordance with the applicable CEC procedures. The most recent PaloAltoGreen program audit, for calendar year 2017, was completed in May 2018. In 2017, CPAU’s hydroelectric generation was above long-term average levels as weather conditions were very wet following five extremely dry years. The City also had three new utility - scale solar projects come online in late 2016. As a result, Palo Alto had an energy surplus and sold the excess generation on the market. The power mix percentages listed in the PSD report reflect the share of the total energy purchased by the City, as opposed to the share of the City’s retail sales. Utilities Department staff submitted the City’s annual PSD report for calendar year 2017 (Exhibit A to Attachment A) to the CEC in May 2018, along with the associated attestation form. (Please note that all Palo Alto net purchases in 2017 were considered carbon neutral, consistent with the Carbon Neutral Plan (Staff Report 3550).) The 2017 PCL was mailed to each electric customer as a bill insert in September 2018, in accordance with the regulation. The attached resolution (Attachment A) approves the annual PSD Report submission and provides the attestation to the veracity of the report as required for exemption from the third party audit requirement for the City’s standard power mix. Staff anticipates submitting the City’s an nual PSD report for calendar year 2018 to the CEC around May 2019, and providing the 2018 PCL to electric customers around September 2019. Resource Impact Adoption of the attached resolution will not result in a financial impact to the City. Policy Implications Adoption of the attached resolution will enable the City to comply with the CEC regulation implementing SB 1305 (California Code of Regulations, title 20, sections 1391 to 1394). Environmental Review Adoption of the attached resolution is not subject to California Environmental Quality Act 3 California Code of Regulations Title 20, Section 1394(b)(2). City of Palo Alto Page 3 (CEQA) review as an administrative government activity that will not result in any direct or indirect physical change to the environment as a result (CEQA Guidelines section 15378(b)(5)). Attachments: • Attachment A: Resolution Approving Palo Alto's 2017 Power Source Disclosure Report *NOT YET APPROVED* 6055095 Resolution No. _________ Resolution of the Council of the City of Palo Alto Approving and Attesting to the Veracity of the 2017 Annual Power Source Disclosure Report R E C I T A L S A. Senate Bill 1305 was adopted in 1997, establishing an Electricity Generation Source Disclosure Program, (“Power Source Disclosure Program”), which requires retail suppliers of electricity to annually submit a power source disclosure report to the California Energy Commission. B. The City of Palo Alto is a retail supplier of electricity as defined by the Power Source Disclosure Program (Ca. Code of Regs., title 20, section 1391). C. The Power Source Disclosure Regulation was updated effective October 31, 2016, requiring an annual audit of the information in the annual Power Source Disclosure Report to be performed by an independent accountant or certified internal auditor, with an exception from this requirement for one electric service product for publicly owned utilities, if the governing body of the publicly owned utility approves at a public meeting the submission to the California Energy Commission of an attestation of the veracity of the annual report. D. The 2017 Power Source Disclosure Report for Palo Alto’s secondary electric service product, which is provided to commercial customers who participate in the PaloAltoGreen program, was independently audited in May 2018 by an independent accountant. E. In May 2018, Utilities Department staff prepared and submitted the 2017 Annual Power Source Disclosure Report to the Energy Commission in accordance with the applicable regulations (Ca. Code of Regs, title 20, sections 1391-1394). The Council of the City of Palo Alto (“City”) RESOLVES: SECTION 1. The Council approves the submission to the Energy Commission and attests to the veracity of the City’s 2017 Annual Power Source Disclosure Report (attached as Exhibit A to this resolution) which staff submitted to the California Energy Commission in May 2018. / / / / / / / / ATTACHMENT A *NOT YET APPROVED* 6055095 SECTION 2. The Council finds that the adoption of this resolution is not subject to California Environmental Quality Act (CEQA) review because adoption of this resolution is an administrative government activity that will not result in any direct or indirect physical change to the environment as a result (CEQA Guidelines section 15378(b)(5)). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ _______________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ _______________________ Assistant City Attorney City Manager ___________________________ Utilities General Manager ___________________________ Director of Administrative Services Version: May 2018 Name James Stack Title Senior Resource Planner Mailing Address 250 Hamilton Avenue, Third Floor City, State, Zip Palo Alto, CA 94301 Phone (650) 329-2314 E-mail james.stack@cityofpaloalto.org Website for PCL Posting https://www.cityofpaloalto.org/gov/depts/utl/residents/resources/pcm/power_content_label.asp If you have questions, contact PSD staff at PSDprogram@energy.ca.gov or (916) 653-6222. Please fill out the schedules that apply to your company’s filing requirements. Provide the annual report and attestation together in PDF format and the annual report in an excel file by email to PSDprogram@energy.ca.gov. Remember to fill in the company name above, submit separate reports and attestations for each additional product if multiple electric service products are offered. Report procurements in MWh (not kWh). COMPANY NAME City of Palo Alto Utilities CONTACT INFORMATION NOTE: Information submitted in this report is not automatically held confidential. If your company wishes the information submitted to be considered confidential an authorized representative must submit an application for confidential designation (CEC-13), which can be found on the California Energy Commissions's website at http://www.energy.ca.gov/commission/chief_counsel/documents/CEC13.pdf PRODUCT NAME (If Multiple Products Offered) CPAU Default Product ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: For the Year Ending December 31, 2017 Power Source Disclosure Program GENERAL INSTRUCTIONS Load serving entities are required to use the posted template and are not allowed to make edits to this format. Please fill out the company name and contact information. Schedule 1 and 2, applicable to: Load Serving Entities Exhibit A Version: May 2018 Unit No. Fuel Type Location (State or Province)RPS ID WREGIS GU ID EIA ID FERC QF ID Gross MWh Procured MWh Resold or Self- Consumed Net MWh Procured WAPA - Nimbus Hydro Folsom, CA W 1161 444 5240.11 5,240.1 WAPA - Nimbus -- RECs only Hydro Folsom, CA W 1161 444 4551.89 4,551.9 WAPA - Lewiston Hydro CA W 1108 274.72 274.7 WAPA - Lewiston -- RECs only Hydro CA W 1108 246.28 246.3 WAPA - Stampede -- RECs only Hydro CA W 1177 1058 1,058.0 Richmond LFG Landfill Gas Richmond, CA W 2781 50831 0 - Johnson Canyon LFG Landfill Gas W 3397 9350 9,350.0 Half Moon Bay (Ox Mountain)Landfill Gas Half Moon Bay, CA W 2033 56895 41975 41,975.0 San Joaquin LFG Landfill Gas W 3883 31935 31,935.0 Santa Cruz LFG Landfill Gas Watsonville, CA W 2014 56428 9765 9,765.0 Butte LFG Landfill Gas Paradise, CA W 2848 57771 0 - Keller Canyon Landfill Gas Pittsburg, CA W 2071 56897 14462 14,462.0 Geothermal Plant #1 - Unit 1 Geothermal Geysers, CA W 1254 7368 0 - Geothermal Plant #1 - Unit 2 Geothermal Geysers, CA W 1255 7368 0 - Geothermal Plant #2 - Unit 4 Geothermal Geysers, CA W 1257 7369 0 - Ukiah, City of (Power sold from share of above plants)Geothermal Geysers, CA see above see above 0 - Geo Solar 1 Clearlake -- self-consumed Solar Geysers, CA W 1509 0 - Geo Solar 2 Middletown -- self-consumed Solar Geysers, CA W 2792 0 - Geo Solar 1 Clearlake -- RECs only Solar Geysers, CA W 1509 0 - Geo Solar 2 Middletown -- RECs only Solar Geysers, CA W 2792 0 - Geo OSL -- self-consumed Geothermal Geysers, CA W 4883 0 - Geo OSL -- RECs only Geothermal Geysers, CA W 4883 0 - Shiloh Wind Solano County, CA W 231 56362 59388 59,388.0 New Spicer Meadows Hydro Tuolomne County, CA W 1260 54554 7916 7,916.0 High Winds Wind Solano County, CA W 229 56075 38095 38,095.0 Collierville Large Hydro Murphys, CA W 1258, 1259 54554 233235 233,235.0 Hydro Solar -- self-consumed Solar Murphys, CA W 1266 11 11 - Hydro Solar -- RECs only Solar Murphys, CA W 1266 11 11.0 EE Kettleman Land - Centaurus Solar W 4695 51364 51,364.0 Elevation Solar C Solar W 5298 110659 110,659.0 Crow Creek Solar Solar W 7962 51623 51,623.0 Hayworth Solar Solar W 4719 61759 61,759.0 Western Antelope Solar W 5300 54533 54,533.0 WAPA - J.F.Carr Large Hydro CA W 1164 2518 31067.1 31,067.1 WAPA - J.F.Carr - RECs only Large Hydro CA W 1164 2518 491.9 491.9 WAPA - Folsom Large Hydro CA W 1156 thru 58 2518 70826.48 70,826.5 WAPA - Folsom - RECs only Large Hydro CA W 1156 thru 58 2518 1146.52 1,146.5 WAPA - Keswick Large Hydro CA W 1165 2518 36193.04 36,193.0 WAPA - Keswick - RECs only Large Hydro CA W 1165 2518 522.96 523.0 WAPA - New Melones Large Hydro CA W 1159, 1160 2518 59863.14 59,863.1 WAPA - New Melones - RECs only Large Hydro CA W 1159, 1160 2518 2298.86 2,298.9 WAPA - Shasta Large Hydro CA W 1168 thru 72 2518 240464.25 240,464.3 WAPA - Shasta - RECs only Large Hydro CA W 1168 thru 72 2518 3972.75 3,972.8 WAPA - Spring Creek Large Hydro CA W 1174 2518 38667.46 38,667.5 WAPA - Spring Creek - RECs only Large Hydro CA W 1174 2518 586.54 586.5 WAPA - Trinity Large Hydro CA W 1175, 1176 2518 34720.01 34,720.0 WAPA - Trinity - RECs only Large Hydro CA W 1175, 1176 2518 859.99 860.0 WAPA - O'Neill Large Hydro CA W 1167, 1186 2518 0.58 0.6 WAPA - O'Neill - RECs only Large Hydro CA W 1167, 1186 2518 5.42 5.4 WAPA - Gianelli - RECs only Large Hydro CA W 1162, 1288 2518 4036 4,036.0 Alameda #1 Natural Gas Natural Gas Alameda, CA 7450 0 - Alameda #2 Natural Gas Natural Gas Alameda, CA 7450 0 - Lodi CT #1 Natural Gas Natural Gas Lodi, CA 7451 0 - Lodi CT #2 NG (STIG)Natural Gas Lodi, CA 7449 0 - Lodi Energy Center Natural Gas Lodi, CA 40613 0 - East Bay Municipal Utility District Landfill Gas Oakland, CA 56036 0 - Vansycle II - RECs only Wind OR W 1458 58324 0 - 1,313,164 884,422 Total Retail Sales Total Net Purchases ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source Disclosure Program For the Year Ending December 31, 2017 SCHEDULE 1: POWER PROCUREMENTS AND RETAIL SALES Applicable to: Load Serving Entities ALL PROCUREMENTS (Specified and Unspecified) Facility Name INSTRUCTIONS: Enter information about power procurements supporting all electricity products for which your company is filing the Annual Report. If you need additional rows, add them from the INSERT menu. Please list all purchases (Specified and Unspecified purchases) as line items under the Facility Name heading. If a procurement was for unbundled RECs include the term "REC Only" in parentheses after the facility name in the Facility Name column, and categorize the power as the fuel type of the generating facility from which the unbundled REC was derived. If procured power was from a transaction that expressly transferred energy only and not the RECs associated with that energy, identify the power as "Unspecified Power" in the Fuel Type column. Version: May 2018 Net Purchases (MWh) Percent of Total Retail Sales (MWh) Specific Purchases Renewable 554,206 63% Biomass & Biowaste 107,487 12% Geothermal - 0% Eligible hydroelectric 19,287 2% Solar 329,949 37% Wind 97,483 11% Coal - 0% Large Hydroelectric 758,958 37% Natural Gas - 0% Nuclear - 0% Other - 0% Total Specific Purchases 1,313,164 100% Unspecified Power (MWh)- 0% Total 1,313,164 100% Total Retail Sales (MWh)884,422 ANNUAL REPORT TO THE CALIFORNIA ENERGY COMMISSION: Power Source Disclosure Program Applicable to: Load Serving Entities For the Year Ending December 31, 2017 SCHEDULE 2: ANNUAL POWER CONTENT LABEL CALCULATION INSTRUCTIONS: Total your specific purchases (by fuel type) and generic purchases from Schedule 1 and enter these numbers in the first column. The remainder of this sheet is automated. If for any fuel type (including generic) the numbers in the : INSTRUCTIONS: Total specific purchases (by fuel type) and enter these numbers in the first column. Null power purchases should be included with Unspecified Power. REC only purchases should be included as part of the fuel type they represent. Total retail sales information from Schedule 1 will autopopulate on this schedule. Any difference between total net purchases and total retail sales will be applied pro-rata to each non-renewable fuel type. Each fuel type total will them be devided by retail sales to calculate fuel mix percentages. COMMENTS: City of Palo Alto (ID # 9534) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/1/2018 City of Palo Alto Page 1 Summary Title: Resolution Authorizing the Purchase of VERs (carbon offsets) from ClimeCo Title: Adoption of a Resolution of the Council of the City of Palo Alto Authorizing the City Manager to Purchase a Portion of the City’s Verified Emission Reductions Requirements from ClimeCo Corporation Under Specified Terms and Conditions during Calendar Years 2018 through 2027, Inclusive From: City Manager Lead Department: Utilities Recommendation Staff recommends that the City Council (Council): 1. Adopt the attached resolution (Attachment A) authorizing the City Manager to approve the Verified Emission Reduction Master Agreements (VER Master Agreements) with ClimeCo Corporation (ClimeCo) and authorizing the City Manager to purchase VERs from ClimeCo under specified terms and conditions during calendar years 2018 through 2027, inclusive, subject to the following limitations: a. The maximum aggregate transaction limit under these Master Agreements shall be $10 million; b. All transactions are subject to the Palo Alto Municipal Code; and c. All transactions are subject to the City’s Energy Risk Management Policy, Guidelines and Procedures; and 2. Delegate to the City Manager, or his designee, the authority to execute on behalf of the City the VER Master Agreements with ClimeCo. Executive Summary To implement the Council-approved Carbon Neutral Natural Gas Plan (Resolution 9649), the City must purchase an annual quantity of carbon offsets (a.k.a. VERs) equal to the greenhouse gas emissions caused by natural gas use by City gas utility customers. In August 2017 Council adopted a Standard Form VER Master Agreement (Resolution 9703) and approved VER Master Agreements with two suppliers (Resolution 9704). ClimeCo has agreed to the terms and conditions of the Standard Form VER Master Agreement. The proposed resolution City of Palo Alto Page 2 (Attachment A) authorizes the City Manager to execute the agreement (Attachment B) and purchase VERs under the agreement within a maximum expenditure and transaction term limits. Background Palo Alto Municipal Code Section 2.30.340 (Contracts for Wholesale Utility Commodities) allows for the use of master agreements to buy and/or sell electricity, gas and related services through various preapproved (“enabled”) suppliers. Contracts or transactions executed under Council-approved master agreements must be done in accordance with the City’s Energy Risk Management Policy, Guidelines and Procedures. On August 15, 2016, Council approved an ordinance modifying the Municipal Code to streamline the purchase and sale of wholesale utility commodities and services and to explicitly allow for a Council-approved standard form master agreement (August 15 City Attorney Report). The ordinance modified Section 2.30.140 clarifying the process to enable suppliers by specifically allowing the use of a standard form master agreement that contains the City’s minimum contract terms and conditions. Execution of standard form master agreements and delegation of authority to transact under the standard form master agreements with specific suppliers is subject to Council approval. This process is also used when contracting for natural gas commodity. In December 2016, Council adopted Resolution 9649 approving a Carbon Neutral Natural Gas Plan to achieve carbon neutrality for the gas supply portfolio by FY 2018 using high-quality carbon offsets or VERs with a cost cap of 10 ₵/therm. Implementation includes executing contracts to enable the City to purchase VERs. In August 2017, Council adopted a Standard Form VER Master Agreement (Resolution 9703) and approved VER Master Agreements with two suppliers (Resolution 9704). Palo Alto has an annual need of approximately 154,000 tons CO 2e of VERs to match the natural gas use in the City. Palo Alto has purchased VERs from three projects to date including 148,000 tons CO2e from a forestry project in the southeastern U.S., 5,915 tons CO2e from a dairy digester project in Wisconsin, and 17,000 tons CO2e from a forestry project near Oaxaca, Mexico, Palo Alto’s sister city. The average cost of VERs for FY18 was 4 ₵/therm. Discussion Maintaining a set of active counterparties is essential to achieving competitive pricing. Master Agreements with specific VER suppliers including maximum expenditures and transaction term limits must be approved by Council. ClimeCo has agreed to the terms and conditions of the Standard Form VER Master Agreement. The proposed resolution (Attachment A) authorizes the City Manager to execute the agreement and purchas e VERs under the agreement within a maximum expenditure and transaction term limits. The proposed VER Master Agreement with ClimeCo is included as Attachment B. City of Palo Alto Page 3 All transactions under all VER Master Agreements will be executed in accordance with the Council-approved Energy Risk Management Policy. The anticipated annual cost of carbon offsets is $1.3 M to $3M. Staff recommends a maximum transaction limit of $10 million per counterparty. Resource Impact Approval of the recommendation will not impact the FY 2019 budget. Policy Implications Adoption of the proposed resolution conforms to the Council-approved Energy Risk Management Policy and the Palo Alto Municipal Code. Further, the recommendation is consistent with the Council-approved Carbon Neutral Gas Plan and the Gas Utility Long- term Plan and the Utilities Strategic Plan objective to manage supply cost by negotiating supply contracts to minimize financial risk. Environmental Review Council’s adoption of the proposed resolution authorizing the City Manager to approve the VER Master Agreement with ClimeCo and authorizing the City Manager to purchase VERs from ClimeCo do not meet the definition of a project for the purposes of the California Environmental Quality Act, under Publ ic Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. VER project developers will be responsible for performing necessary environment al reviews and acquiring permits as offset projects are developed. Attachments: • Attachment A: Resolution Authorizing City Manager to Purchase VERs (Carbon Offsets) from ClimeCo Corporation • Attachment B: Palo Alto VER Standard Form Agreement ClimeCo Resolution No. XXXX Resolution of the Council of the City of Palo Alto Authorizing the City Manager to Purchase a Portion of the City’s Verified Emission Reductions Requirements from ClimeCo Corporation Under Specified Terms and Conditions during Calendar Years 2018 through 2027, Inclusive RECITALS A. On December 5, 2016, the Council adopted Resolution 9649 approving a Carbon Neutral Natural Gas Plan to achieve a carbon neutral gas portfolio by fiscal year 2018 with no greater than a 10¢/therm rate impact. B. In accordance with the Carbon Neutral Plan, the City must purchase environmental offsets or verified emission reductions equal to the annual emissions from natural gas use by all City of Palo Alto Natural Gas Utility customers. C. By Ordinance 5387 adopted August 15, 2016, Council approved changes to the Municipal Code specifically streamlining the purchase and sale of wholesale utility commodities and services and explicitly allowing for standard form Master Agreements. D. The standard form Verified Emissions Reduction Master Agreement was approved by Council on August 21, 2017. E. The City intends to purchase verified emission reductions from one or more prequalified suppliers from delivery during calendar years 2018 through 2027, inclusive, so long as the supplier with whom the City negotiates a specific purchase transaction continues to be qualified and otherwise eligible to transact with the City. NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Council hereby authorizes the City Manager or his designee, the Director of Utilities, to purchase a portion of the City’s verified emission reduction requirements from ClimeCo Corporation by negotiating one or more individual transactions, including, but not limited to, contracts, addenda, confirmations, and transactions. SECTION 2. The purchases negotiated under Section 2 with ClimeCo Corporation shall not exceed $10 million in aggregate. ATTACHMENT A SECTION 3. Adoption of this Resolution is not subject to California Environmental Quality Act review as an administrative governmental activity that will not result in any direct or indirect physical change in the environment as a result (CEQA Guidelines section 15378(b)(5)). INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: _____________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: _____________________________ ______________________________ Deputy City Attorney City Manager ______________________________ Director of Administrative Services ______________________________ Director of Utilities 1 MASTER AGREEMENT FOR THE PURCHASE AND SALE OF VERIFIED EMISSION REDUCTIONS This Master Agreement for the Purchase and Sale of Verified Emission Reductions (the “Master Agreement”) is made as of this _____ day of __________, 2018 (“Effective Date”), by and between the City of Palo Alto, California, a chartered California municipal corporation with its primary business address at 250 Hamilton Avenue, Palo Alto California 94301 (“City” or “Buyer”) and ClimeCo Corporation, a Delaware corporation, with its primary business address at 1 E. Philadelphia Ave., Boyertown, PA 19512 (“Seller”). This Master Agreement, together with any and all Confirmation Letters and other schedules and exhibits related to Verified Emissions Reductions (as defined herein) shall be referred to as the “Agreement”. RECITALS: A. The Parties wish to buy and sell Verified Emission Reductions on the terms set forth in this Master Agreement; B. Buyer wishes to enter into this Master Agreement with Seller to facilitate future Verified Emission Reductions purchases to manage various customer programs administered by the Buyer; C. Seller has access to Verified Emission Reductions and wishes to enter into this Master Agreement with Buyer to participate in the future Verified Emissions Reductions purchases that the City may undertake from time to time; and D. This Master Agreement facilitates, but does not guarantee, Seller’s qualifications to competitively participate with other sellers in future Verified Emission Reductions purchases, and it does not guarantee that the City will enter into any future Verified Emission Reductions purchases with the Seller. NOW, THEREFORE, in consideration of the recitals and the covenants, terms and conditions of this Master Agreement, the Parties agree: AGREEMENT 1.Term and Termination. The term of this Master Agreement shall commence on the Effective Date, as set forth above, and shall remain in effect until terminated by either Party upon thirty (30) days’ prior written notice, subject to the provisions of Section 24, except that any such termination shall not be effective until all payments, deliveries and other obligations of the Parties under this Master Agreement, and any Confirmation Letters executed thereunder, have been completed. 2.Definitions. As used in this Master Agreement, the following terms have the respective meanings set forth below, unless the context otherwise clearly indicates. Other capitalized terms are defined elsewhere in this Master Agreement. “Applicable Law” means all legally binding constitutions, treaties, statutes, laws, ordinances, rules, regulations, orders, interpretations, permits, judgments, decrees, injunctions, DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C ATTACHMENT B 2 writs and orders of any Governmental Authority or arbitrator that apply to the Verified Emission Reductions or any one or both of the Parties or the terms hereof. “ARB” means the California Environmental Protection Agency Air Resources Board, or any successor agency thereto. “Bankrupt” means with respect to any entity, such entity (i) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankruptcy, insolvency, reorganization or similar law, or has any such petition filed or commenced against it, (ii) makes an assignment or any general arrangement for the benefit of creditors, (iii) otherwise becomes bankrupt or insolvent (however evidenced), (iv) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed with respect to it or any substantial portion of its property or assets, or (v) is generally unable to pay its debts as they fall due. ”Business Day" means any day, except a Saturday, Sunday, or any day observed as a legal holiday by the City. A Business Day shall open at 8:00 a.m. and close at 5:00 p.m. Pacific Standard Time or Pacific Daylight Time, as applicable. "Confidential Information" is defined in Section 12. “Confirmation Letter” or “Confirm” means a written confirmation materially in the form of Exhibit A attached hereto. The Confirmation Letter constitutes part of, and is subject to, the terms and provisions of this Master Agreement. “Contract VERs” means the VERs specified in the Confirmation Letter and relating to the GHG Reductions generated by the Project during the Vintage Year(s). "Delivery" has the meaning specified in Section 3(b). “Delivery Deadline” means three (3) Business Days after the Transaction Date specified in an applicable Confirm. “Effective Date” has the meaning given to such term in the opening paragraph of this Master Agreement. “Force Majeure” is defined in Section 21. “Governmental Authority” means any national, federal, provincial, state, municipal, county, regional or local government, administrative, judicial or regulatory entity operating under any Applicable Law and includes any department, commission, bureau, board, administrative agency or regulatory body of any government. “GHGs” means one or more of the six greenhouse gases listed in Annex A to the Kyoto Protocol of the UNFCCC, as amended from time to time. “GHG Reduction” means the removal, limitation, reduction, avoidance, sequestration or mitigation of anthropogenic GHG emissions. “Party” or “Parties” means Buyer and Seller, individually or collectively, as applicable. “Project” means an emission reduction project that is located in the United States and an “Offset Project” as defined by ARB and of a Project Type approved by ARB and is identified in DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 3 the applicable Confirmation Letter. “Project Documentation” means documents, data or other information, whether in written or electronic form, produced by Seller or to which Seller has access relating to the Project or the Contract VERs. “Project Type” means U.S. Forest, U.S. Urban Forest, U.S. Livestock, U.S. Sourced and Destroyed Ozone Depleting Substances, U.S Mine Methane Capture, and U.S. Rice Cultivation; or any other Project Type subsequently approved by ARB. “Registry” means either the Climate Action Reserve, the Verified Carbon Standard, or the American Carbon Registry or any successor registry thereto. “Transaction” means a written agreement between the Parties in the form of an applicable Confirmation Letter to undertake one or more Deliveries of Contract VERs, subject to the terms of this Master Agreement. “Transaction Date” means the date the Parties enter into a Transaction as specified on the applicable Confirm. “Unit Price” means the price for Contract VERs set forth in the applicable Confirmation Letter. “VER Payment” means an amount equal to the product of the Unit Price multiplied by the number of Contract VERs Delivered to Buyer in accordance with this Agreement. “Verification”, “Verify” and “Verified” means the determination by a Verification Provider that an emissions reduction meets the requirements of the Registry as evidenced by a Verification Report and unique serial number. “Verified Emission Reduction” or “VER” means one (1) metric tonne of CO2 Equivalent (CO2e) of Verified GHG Reductions generated by the Project. “Verification Provider” means an independent verification provider accredited by a Registry (or such other verification provider proposed by Seller and accepted by Buyer in its sole discretion). “Verification Report” means any written report required by a Registry and prepared by a Verification Provider reviewing and verifying that, in accordance with Project Documentation, Registry Protocols and requirements in effect at the date of its production, the Contract VERs have occurred during the Vintage Year and are eligible for registration in the Registry. “Vintage Year” means, in respect of a Contract VER, the calendar year in which the emissions reductions and removals represented thereby occurred as specified in the applicable Confirmation Letter. 3. Purchase and Sale of Verification Emission Reductions. a. Purchase and Sale. Subject to the terms and conditions of this Master Agreement, Seller agrees to Deliver to Buyer the Contract VERs on the terms specified in an executed Confirmation Letter, a form of which is attached hereto as Exhibit A. DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 4 Buyer agrees to purchase all such Contract VERs to the extent they are Delivered on or before the specified Delivery Date for such Contract VERs. b. Delivery. Seller shall deliver the Contract VERs to Buyer by the Delivery Deadline. Seller will effect delivery by retiring the Contract VERS on behalf of Buyer in Seller’s Registry account identified in the Confirmation Letter, along with the notation “on behalf of the City of Palo Alto” or similar expression. The Contract VERs will be deemed to be delivered upon Buyer’s receipt of an electronic confirmation from such Registry that the relevant retirement has been completed (“Delivery”, and variations of such term shall have their corresponding meanings.) Title to the Contract VERs will pass from Seller to Buyer upon Delivery. c. Project Documentation. i. Verification Reports. Upon the written request of Buyer, Seller shall deliver to Buyer copies of any Verification Report(s) for the Contract VERs within ten (10) Business Days of such request. ii. Other Project Documentation. Upon the reasonable written request of Buyer, Seller shall provide to Buyer copies of Project Documentation (to the extent that such Project Documentation is made available to Seller) within ten (10) Business Days of such request. 4. Price and Payment. i. Price. Buyer agrees to buy the applicable Contract VERs from Seller at the Unit Price specified in the applicable Confirm for each Contract VER Delivered to Buyer. Seller agrees to pay all Registry fees associated with the issuance and Delivery of the Contract VERs to Buyer. ii. Billing and Terms of Payment. a. Buyer will remit the VER Payment to Seller net thirty (30) days after the date Buyer receives a properly prepared and accurate invoice sent to Buyer’s address for Contract VERs that have been Delivered. Buyer has no obligation to make payment for any Contract VERs that have not been Delivered in accordance with Section 3(b). b. An invoice that is properly prepared shall include at a minimum: i. Seller’s complete name and address where payment is to be remitted; ii. Buyer’s complete name and address where bill is to be sent; DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 5 iii. The Unit Price; iv. The VER Payment; v. Invoice date; vi. Terms of payment, including any applicable discount calculations; and vii. Tax amount/rate information, if applicable. c. Payment may be made by wire transfer. Payment by check shall be considered made when received by Seller. Wiring instructions: To be indicated on invoice iii. Taxes and Fees. a. Seller will pay all taxes and fees arising prior to Delivery. b. Seller will pay all mandatory taxes and fees arising out of the transactions contemplated by this Agreement levied by a government or other competent public taxing authority on the transfer of the Contract VERs to Buyer, including any sales tax (if applicable). c. Each Party will pay for its own income, property or ad valorem taxes. 5. Events of Default. A Party is in default hereunder if that Party does any of the following (each an “Event of Default”): a. the failure of any Party to make any payment when due if such failure is not remedied within thirty (30) days after receipt of written notice of such failure, provided that if the Buyer, in good faith, disputes all or any portion of the payment, the Buyer shall pay only that portion of the payment that it does not dispute; b. in the case of Seller, if by the applicable Delivery Deadline, Seller fails to Deliver to Buyer any Contract VERs specified on an executed Confirmation Letter and that failure is not remedied within five (5) Business Days of Buyer giving notice of that failure, and such failure is not due to Force Majeure or Buyer’s failure to accept such Contract VERs following proper Delivery; c. any representation or warranty provided by either Party herein that shall prove to have been false or misleading in any material respect when made or repeated; DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 6 d. the failure by a Party to perform any covenant or agreement set forth in this Master Agreement and applicable Confirmation Letters and incorporated exhibits (other than its obligations to make any payment or obligations which are otherwise specifically covered as a separate Event of Default), and such failure is not cured within fifteen (15) Business Days after written notice thereof to the affected Party; e. the Party becomes Bankrupt; or f. the failure by either Party to comply with any of its material obligations under this Agreement and that failure is not remedied within thirty (30) days of the other Party giving notice of that failure. 6. Remedies for Default. In the event of an Event of Default by either Party, the non-defaulting Party may terminate this Agreement and all of the applicable Confirmation Letters immediately upon written notice to the defaulting Party. Upon a valid termination under this provision, Seller (if the non-defaulting Party) will have no further obligation to Deliver additional Contract VERs to Buyer, and Buyer (if the non- defaulting Party) will have no further obligation to purchase additional Contract VERs under this Agreement, including with respect to any applicable Confirmation Letters that have been entered between the Parties but not yet Delivered. Termination of the Agreement under this provision will not limit in any way any remedies available to the Parties under this Agreement. 7. Representations. a. Representations by Both Parties. Each Party represents and warrants to the other Party that: i. it is a legal entity, duly formed and validly existing and in good standing under the laws of the state of its formation; ii. it has the power and authority to enter into and perform its obligations under this Agreement; iii. by entering into this Agreement, it will not breach the material terms of any contract with a third party; iv. it is not relying upon any representations of the other Party other than those expressly set out in this Agreement; v. it has entered into this Agreement after a full opportunity to review its terms and conditions, has a full understanding of those terms and conditions and or their risks, and is capable of assuming those risks; and vi. this Agreement constitutes a legal, valid and binding obligation on it enforceable in accordance with its terms by appropriate legal remedy. DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 7 b. Seller’s Representations to Buyer. Seller hereby represents and warrants to Buyer that: i. it has not sold, transferred, assigned, licensed, disposed of or encumbered (nor become legally obligated to do the same) any right, title or interest in the Contract VERs covered by an applicable Confirm to any person other than Buyer and other than as contemplated in this Agreement; ii. Seller conveys the Contract VERs to Buyer free and clear of any liens, encumbrances, claims, security interests, or title defects; iii. it has the right to transfer the Contract VERs covered by an applicable Confirm to Buyer; iv. it has good title to each Contract VER and it obtained and possessed, or will obtain and possess at the time of transfer, the Contract VERs lawfully; v. any Project-related data provided to Buyer is true and correct to the best of Seller’s knowledge, information and belief; vi. each Project agreed to under applicable Confirmation Letters to this Agreement is in substantial compliance with all applicable material laws and regulations, including permit requirements for the operation of such a Project; vii. no authorization, consent, notice to or registration or filing with any governmental authority is required for the execution, delivery and performance by Seller; viii. none of the execution, delivery and performance by Seller conflicts with or will results in a breach or violation of any contract or instrument to which such Seller is a party of is bound; ix. there are no proceedings by or before any governmental authority, now pending or (to the knowledge of Seller) threatened, that if adversely determined could have a material adverse effect on Seller’s ability to perform Seller’s obligations hereunder; x. the Contract VERs covered by an applicable Confirmation Letter have not been used by Seller or any third party to meet any international, federal, state or local requirement, renewable energy procurement, renewable portfolio standard or other mandate; xi. Seller will not offer, sell, transfer, dispose, encumber or otherwise deal in the GHG Reductions associated with the applicable Contract VERs other than as provided herein; xii. the Contract VERs are, and will be at the time of Delivery, validly issued and in force in accordance with the protocols of the Registry specified in the applicable Confirmation Letter; DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 8 xiii. the Contract VERs are, and will be immediately prior to Delivery, duly registered to Seller in the Registry specified in the applicable Confirmation Letter; xiv. neither the Seller, nor any of its associated or parent organizations or affiliates or its customers, has claimed (or will claim) directly or indirectly, including on any voluntary or mandatory greenhouse gas registry program (including EPA Climate Leaders), any of the Contract VERs to be Delivered under this Agreement or any associated GHG Reductions, carbon reductions, offsets, or benefits as part of its own carbon inventory, footprint, or other carbon statement or declaration as anything other than sold to Buyer. Any such reporting of emissions or emissions reductions shall include as Seller's emissions an amount equal to the VER Quantity and Vintages of the Contract VERs sold hereunder, and indicate their sale to Buyer; xv. the Contract VERs have been Verified by the Verification Provider in a Verification Report for the Vintage Year(s); and xvi. no document or information supplied by Seller in connection with this Agreement contains any untrue statement or omits to state a material fact necessary in order to make such document not misleading. 8. Obligations and Liabilities. a. This Master Agreement sets out the full extent of the Parties’ obligations and liabilities arising out of or in connection with this Master Agreement, and there are no conditions, warranties, representations or terms, express or implied, that are binding on the Parties except as specifically stated in this Master Agreement. Any condition, warranty, representation or other term which might otherwise be implied into or incorporated in this Master Agreement, whether by statute, common law or otherwise, is hereby expressly excluded. b. Save as expressly provided otherwise in this Master Agreement, neither Party will be liable under or in connection with this Master Agreement for any loss of income, loss or profits or loss of contracts, or for any consequential, incidental, punitive, exemplary, or indirect losses or damages in tort (including negligence), contract, or otherwise pursuant to this Section 8, except for any claims indemnified pursuant to Section 9. 9. Indemnification a. Indemnification of Buyer: To the fullest extent permitted by Applicable Law, Seller agrees to protect, defend, hold harmless and indemnify Buyer, its City Council, commissioners, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 9 all costs and reasonable attorney’s fees in providing a defense to any claim arising therefrom, for which Buyer shall become liable arising from Seller’s acts, errors, or omissions with respect to or in any way pursuant to this Master Agreement and subsequent transactions and related Confirmation Letters, except for claims, liabilities and damages caused by the Buyer’s sole negligence or willful misconduct. b. Indemnification of Seller: To the fullest extent permitted by Applicable Law, Buyer agrees to protect, defend, hold harmless and indemnify Seller, its board of directors, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including all costs and reasonable attorney’s fees in providing a defense to any claim arising therefrom, for which Seller shall become liable arising from Buyer’s negligent, reckless or wrongful acts, errors, or omissions with respect to or in any way connected with the maintenance, assistance and services performed by Buyer pursuant to this Master Agreement and subsequent and related Confirmation Letters, except for claims, liabilities and damages caused by the Seller’s comparative negligence or willful misconduct. 10. Relationship of the Parties. The relationship of the Parties under this Master Agreement is that of independent contractors. The Parties specifically state their intention that this Master Agreement is not intended to create a partnership or any other co-owned enterprise unless specifically agreed to by the Parties in a separate written instrument. Except as specifically provided herein, each Party shall continue to have the right to contract independent of the other Party with individuals and entities. Each Party shall be responsible for its own operating expenses and personnel expenses. 11. Notices. All notices required or permitted to be given hereunder in writing shall, unless expressly provided otherwise, be in writing, properly addressed, postage pre-paid and delivered by hand, facsimile, certified or registered mail, courier or electronic messaging system to the appropriate address as either Party may designate from time to time by providing notice thereof to the other Party. If to Buyer: If to Seller: 250 Hamilton Ave. Attn: Derek Six Palo Alto, CA 94301 1 E. Philadelphia Ave Attention: City Clerk Boyertown, PA 19512 Phone: 650-329-2571 Phone: 484-415-0501 Fax: 650-328-3631 Fax: 484-363-4022 DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 10 With a copy to: 250 Hamilton Ave. Palo Alto, CA 94301 Attention: Director of Utilities Phone: 650-329-2277 Fax: 650-329-2154 Notices delivered by facsimile or by an electronic messaging system shall require confirmation through a reply facsimile or electronic message. 12. Confidential Information. a. “Confidential Information” shall mean and include information consisting of documents and materials of a disclosing Party and/or any other technical, financial or business information of or about a disclosing Party which is not available to the general public, as well as all information derived from such information, which is furnished or made available to the other Party and is clearly labeled, marked or otherwise identified as “confidential” or “proprietary information.” b. The disclosing Party is the Party to whom the Confidential Information originally belongs and who shall, after appropriate notice from the receiving Party, bear the burden of pursuing any legal remedies to retain the confidential status of the Confidential Information, as set forth in Section 12(e), below. c. Confidential Information disclosed by either Party to the other shall be held by the receiving Party in confidence, and shall not be: i. used by the recipient to the detriment of the disclosing Party; or ii. made available for third parties to use. d. Each Party will direct its employees, contractors, consultants and representatives who have access to any Confidential Information to comply with all the terms of this Section. Information received by the receiving Party shall not be Confidential Information if: i. it is or becomes available to the public through no wrongful act of the receiving Party; ii. it is already in the possession of the receiving Party and not subject to any confidentially agreement between the Parties; iii. it is received from a third party without restriction for the benefit of the disclosing Party and without breach of this Master Agreement; DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 11 iv. it is independently developed by the receiving Party; or v. it is disclosed pursuant to a requirement of law or a duly empowered government agency or a court of competent jurisdiction after due notice and an adequate opportunity to intervene is given to the disclosing Party, unless such notice is prohibited. e. Seller acknowledges that City is a public agency and is subject to the requirements of the California Public Records Act Cal. Gov. Code section 6250 et seq. Seller may submit Confidential Information to the City pursuant to Section 12(a), above and the City will maintain such identified documents as confidential to the fullest extent allowed by law. However, upon request or demand from any third person or entity not a party to this Master Agreement (“Requestor”) for production, inspection and/or copying of information designated by a disclosing Party as Confidential Information, the receiving Party shall notify the disclosing Party that such request has been made in accordance with Section 12 of this Master Agreement. Upon receipt of this notice, the disclosing Party shall be solely responsible for taking whatever legal steps may be necessary to protect the information deemed by it to be Confidential Information and to prevent release of information to the Requestor by the receiving Party. If within ten (10) days after receiving the foregoing notice from the receiving Party, the disclosing Party takes no such action, the receiving Party shall be permitted to comply with the Requestor’s demand and is not required to defend against it. f. Upon termination or expiration of this Master Agreement, the receiving Party shall, at the disclosing Party’s direction, either return or destroy all of the disclosing Party’s Confidential Information and so certify in writing. The obligations of this provision will survive for one (1) year after any termination or expiration of this Master Agreement. 13. Publicity and Disclosure. Seller shall not use the name, tradename, trademarks, service marks of or owned by Buyer, or logos of Buyer, or share Confidential Information in any publicity releases, news releases, annual reports, product packaging, signage, stationery, print literature, advertising, websites or other media without securing the prior written approval of Buyer. Seller shall not, without the prior written consent of Buyer, represent, directly or indirectly, that any product or service offered by Seller has been approved or endorsed by Buyer. Seller agrees that Buyer may make oral and written reports and other communications regarding this Master Agreement and subsequent Contract VER Transactions to the Palo Alto City Manager, City Council and other public officials as required by law, which reports and communications will be public reports and communications. 14. Nondiscrimination. As set forth in Palo Alto Municipal Code section 2.30.510, Seller agrees that in the performance of this Master Agreement, it shall not discriminate in the employment of DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 12 any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Seller acknowledges that it has read and understands the provisions of Chapter 2.30 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Chapter 2.30 pertaining to nondiscrimination in employment, including completing the form furnished by Buyer and set forth in Exhibit B. 15. Choice of Law. The laws of the State of California shall be applied and be controlling for all purposes and all matters relating to this Master Agreement. In the event that an action is brought, the Parties agree that trial of such action will be vested exclusively in the United States District Court for the Northern District of California in the County of Santa Clara, State of California. 16. Entire Agreement. This Master Agreement constitutes the entire agreement between the Parties relating to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, whether oral or written, of the Parties. 17. Amendments. Except to the extent herein provided, no amendment, supplement, modification, termination or waiver of this Master Agreement shall be enforceable unless executed in writing by the Party to be bound thereby. 18. Assignment. This Master Agreement is binding on any successors and assigns of the Parties. Neither Party may otherwise transfer or assign this Master Agreement, in whole or in part, without the other Party’s written consent. Such consent shall not be unreasonably withheld, conditioned or delayed. 19. Non-Waiver; No third Party Beneficiaries. No waiver by any Party of any of its rights with respect to the other Party or with respect to this Master Agreement or any matter or default arising in connection with this Master Agreement, shall be construed as a waiver of any other right, matter or default. Any waiver shall be in writing signed by the waiving Party. No payment, partial payment, acceptance or partial acceptance by Buyer will operate as a waiver on the part of the Buyer of any of its rights under the Master Agreement. This Master Agreement and subsequent Confirmation Letters are made and entered into for the DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 13 sole benefit of the Parties, and their permitted successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, have any rights under, or have any direct or indirect cause of action or claim in connection with this Master Agreement. 20. Severability. In the event that any provision of the Master Agreement is found to be void or unenforceable, such findings shall not be construed to render any other provision of the Master Agreement either void or unenforceable, and all other provisions shall remain in full force and effect unless the provisions which are void or unenforceable shall substantially affect the rights or obligations granted to or undertaken by either Party. 21. Force Majeure. Neither Seller shall be liable in any respect for failure to Deliver the Contract VERs to Buyer, nor Buyer shall be liable in any respect for failure to accept the Contract VERs from Seller, if such performance is hindered or prevented, directly or indirectly, by an event beyond the reasonable control of either Party, including, without limitation, war, public emergency or calamity, fire, earthquake, Acts of God, strikes, labor disturbance or actions, civil disturbances or riots, litigation brought by third parties against the Parties, or any act of a superior Governmental Authority or court order. Force Majeure may not be based on (i) Seller’s ability to sell the Contract VERs to another at a price greater than the Unit Price specified in the Confirmation Letter, (ii) Buyer’s inability economically to use the Contract VERs, or (iii) Buyer’s ability to purchase Contract VERs at a price less than the Unit Price specified in the Confirmation Letter. 22. Exhibits. The exhibits attached hereto are incorporated into this Master Agreement by reference. The exhibits may only be revised upon mutual written agreement between the Parties unless otherwise specified in the exhibits. 23. Compliance with the Law. Each Party will comply with all lawful federal, state and local law, ordinances, resolutions, rate schedules, rules and regulations that may affect its rights and obligations under the Master Agreement. 24. Fiscal Provisions. The Transactions under this Master Agreement are subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. The Master DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 14 Agreement and all related Confirmation Letters and Agreements will terminate without penalty (i) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (ii) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal years and funds for the City’s obligations are no longer made available. This provision will take precedence in the event of a conflict with any other term or condition of the Master Agreement or a Confirm. 25. Interpretation. In this Agreement, unless the context requires another meaning, a reference : a. To any document (including this Agreement) is to that document as varied, amended, novated, ratified or replaced from time to time; b. To any Party includes that Party’s executors, administrators, successors and permitted assigns, including any person taking by way of novation and, in the case of a trustee, includes any substituted or additional trustee; c. To the singular includes the plural and vice versa, and to a gender includes all genders; d. To the Sections are inserted for convenience of reference only and do not affect the interpretation of this Agreement; e. To a Confirmation Letter is to the active Confirmation Letter; and f. If there is any conflict between the provisions of an applicable Confirmation Letter and any other provisions of this Master Agreement, if it has been signed by both Parties, the terms of that Confirmation Letter will prevail. IN WITNESS WHEREOF, each of the Parties hereto acknowledge that they have read the terms and conditions contained herein, understand and agree to the same and agree to be bound thereby and have caused this Master Agreement to be executed in duplicate originals by its duly authorized representative on the respective dates entered below. DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 15 CITY OF PALO ALTO (“BUYER”) __________________________ City Manager APPROVED AS TO FORM: __________________________ Counsel to the City of Palo Alto APPROVED: __________________________ Director of Administrative Services __________________________ Director of Utilities CLIMECO CORPORATION (“SELLER”) By: __________________________ Name: Derek Six Title: Chief Business Officer Taxpayer Identification No. 26-4216162 DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 16 EXHIBIT A VERIFIED EMISSION REDUCTIONS CONFIRMATION LETTER PRO FORMA The following describes a Transaction between Buyer and Seller for the sale, purchase and delivery of Contract VERs pursuant to the terms and conditions of the Verified Emission Reduction s Purchase and Sale Agreement (“Master Agreement”) between the City of Palo Alto and dated , 20 . Initially capitalized terms used and not otherwise defined herein are defined in the Master Agreement. Basic Commercial Terms: Transaction Date: Seller: Buyer: City of Palo Alto Product: VERs Registry: Project Name and Registry ID: Project Location: Vintage Year(s): Quantity of Contract VERs: Unit Price ($/VER): VER Payment ($): This Confirmation Letter is executed pursuant to and in accordance with the Master Agreement, and constitutes part of and is subject to the terms and provisions of the Master Agreement. The Parties agree to the Transaction set forth herein. City of Palo Alto (“Buyer”) ClimeCo Corporation (“Seller”) Signature Signature Name Name Title Title Date Date DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 17 EXHIBIT B CERTIFICATION OF NONDISCRIMINATION As suppliers of goods or services to the City of Palo Alto, the firm and individuals listed below certify that they do not and will not during the course of this Agreement discriminate in the employment of any person because of the race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person and that they are in compliance with all Federal, State and local directives and executive orders regarding nondiscrimination in employment. THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. Authorized Signature:____________________________________________________ Date: _____________________ DocuSign Envelope ID: 9EE779C6-463F-42F3-9A92-D20C3DF3A72C 8/12/2018 City of Palo Alto (ID # 9573) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/1/2018 City of Palo Alto Page 1 Summary Title: Approval of Contract for Artwork at the Junior Museum and Zoo and Acceptance of Payment from the Fri Title: Approval of a Contract With Charles Sowers Studio, LLC in the Not -to- Exceed Amount of $175,000 for the Fabrication and Delivery of Ar twork Associated With the Junior Museum and Zoo; Acceptance of Fund Contributions From the Friends of JMZ; and Approval of a Budget Amendment in the Art in Public Places Capital Project (AC -86017) in the Capital Improvement Fund From: City Manager Lead Department: Community Services Recommendation Staff recommends that Council : A. Approve a contract not to exceed $175,000 with artist Charles Sowers Studio, LLC for the fabrication and delivery of artwork associated with the Junior Museum and Zoo project (Attachment A); B. Accept the funding contribution in the amount of $175,000 from the Friends of the Junior Museum and Zoo; and C. Amend the Fiscal Year 2019 Budget Appropriation Ordinance for the Capital Improvement Fund budget by: a. Increasing the revenue estimate for donations/contributions by $175,000; and b. Increasing the Art in Public Spaces capital project (AC-86017) appropriation by $175,000. Executive Summary The Junior Museum and Zoo project is subject to Municipal Code Section 2.26.070 Public Art for Municipal Projects, requiring that one percent of the qualifying City of Palo Alto Page 2 Capital Improvement Project (CIP) budget is devoted to public art. Additionally, the City adopted an ordinance in 2013 to add chapter 16.61 to the Municipal Code, requiring one percent of qualifying private development projects to either commission art on site or pay the equivalent in-lieu contribution to the Public Art Fund. During negotiations of the Facilities Agreement between the City and the Friends of the Junior Museum and Zoo, the final construction amount and art budget amount were still under review. The City and the Friends settled on an amount of $175,000 for the art budget in consideration for the City’s contribution towards paying half of the Fixtures, Furnishings, and Equipment, which is approximately $200,000. Staff report 8851 can be found here: (https://www.cityofpaloalto.org/civicax/filebank/documents/63049) Background As the Bay Area’s premier children’s science center and zoo, the Palo Alto Junior Museum & Zoo (JMZ) is a place where children, ages 0-9 years old, and families explore, wonder, and make discoveries about the natural world. JMZ’s mission is to engage a child’s curiosity for science and nature. A new facility is under construction to “right size” the Junior Museum and Zoo to better serve their audience. The new JMZ construction project demolished the previous 9,000 square foot (SF) Junior Museum and 13,000 SF Zoo. The new design for the JMZ includes constructing a new museum and education building, outdoor zoo with netted enclosures, and perimeter site improvements on the site of the original facilities. The proposed museum and zoo project scope has been developed in coordination with the Public Works Department on the Long Range Plan for Rinconada Park, the surrounding park area, parking lot, and adjacent public facilities, which includes the JMZ site. To reduce costs, the design for the new JMZ was revised from a two-story building to a single-story building in response to the escalation of costs over the last three years. The result has been a decrease in size of 4,422 SF. The updated overall project square footage includes: ▪ Museum/Education Building: 15,150 SF ▪ Zoo and Outdoor Animal Management Area (Back of House): 17,182 SF o Loose in the Zoo: 14,150 SF o Outdoor Animal Management (Back of House): 3,032 SF City of Palo Alto Page 3 In 2013, the Friends of the Junior Museum and Zoo (Friends) generously committed to raising $25 million for the proposed JMZ replacement project. In February 2017, the Friends achieved their $25 million dollar fundraising goal. The City extends recognition and appreciation to the Friends, and to the Peery Family, who pledged $15 million of the $25 million. On December 4, 2017, Council unanimously approved the planned design of the new JMZ, as well as the Mitigated Negative Declaration and Park Improvement Ordinance. Staff report 8613 can be found here: https://www.cityofpaloalto.org/civicax/filebank/documents/62293. On February 5, 2018, Council approved the facilities agreement including Site Lease and Agreement regarding Use Restriction. Staff report 8851 can be found here: https://www.cityofpaloalto.org/civicax/filebank/documents/63049 The Art Selection Process: There were multiple opportunities called out in the Request for Qualifications for an artist to integrate into the project. Among the spaces identified for the integration of art were: the Entry Plaza area; the 450 foot wall facing Rinconada Park; the Tunnel from Middlefield Road to the entry plaza; and the building façade of the ticketing area. The goals for the artwork include: ▪ Support the mission of the JMZ programming ▪ Engage the public (families and children) ▪ Accessibility An open call to artists launched in December 2016, yielding over 250 applications. Of the 181 qualifying artists, staff conducted three pre-panels that narrowed the list to the final 20 artists to be considered by the selection panel. The selection panel was made up of: 1. Steven Huss – Public Art Manager, City of Walnut Creek City of Palo Alto Page 4 2. Shelly Willis – Former Executive Director, Sacramento Metropolitan Arts Commission 3. Sarah Vaccaro – CAW Architects 4. Loren Gordon – Commissioner, Public Art Commission 5. Lauren Angelo – Community Member, Friends of JMZ Board Member 6. Tina Keegan – Director of Exhibitions, Junior Museum and Zoo 7. Rhyena Halpern – Director, Arts & Sciences Division / Assistant Director, Community Services Department The selection panel chose four artists and artist teams to give presentations about their previous work and design development process to the panel April 27, 2017. Panelists were asked to score the artists in three categories: 1- Strength of previous work in similar environments; 2- Suitability to the Junior Museum and Zoo; 3- Durability of Materials; and 4- High degree of audience engagement. After the interviews, the panelists scored the artists, and Charles Sowers was the highest ranked artist. City of Palo Alto Page 5 Discussion Sowers was approved by the Public Art Commission as the project artist on May 18, 2017 and entered into a $10,000 design contract funded by the Art in Public Places capital project (AC-86017). He met with the design team, toured the JMZ facility, held a public information meeting at the JMZ, and explored various concepts for the site. The feedback from the design team was that the artist should primarily focus on the entry to the building or the approach from Middlefield Rd. to draw visitors to the site. On October 20, 2017, Sowers met with the design team and key stakeholders to discuss three potential concepts to develop for the Junior Museum and Zoo project. The team agreed that his “pendulum swings” concept was the most compelling and aligned with the JMZ’s programming as well as drawing curious visitors to the facility. The design team and stakeholders felt strongly that this concept met and exceeded the goals set for the public art element. The Public Art Commission reviewed the concept and unanimously approved the pendulum artwork on November 16, 2017. The artist then developed that concept further, coordinating logistics of integrating artwork with the building in cooperation with the architect and project engineer. Timeline Construction of the new JMZ facility is underway and is expected to open in May 2020. To ensure the interactive art installation will be in place by the opening date, construction and installation of the “pendulum swings” must occur by September 2019. The artist needs funding to create a full-scale prototype for testing before beginning full fabrication. Resource Impact A $10,000 design development contract with Charles Sowers Studio, LLC was previously funded by the Art in Public Places capital project (AC-86017). The Friends of the Junior Museum and Zoo, in accordance with the Facilities Agreement, agreed to pay $175,000 for the art budget. This funding is being recognized and appropriated as part of this memorandum. Policy Implications As per the newly adopted Comprehensive Plan, specific policies relevant to this project are: City of Palo Alto Page 6 Policy L-8.5 Recognize public art and cultural facilities as a community benefit. Encourage the development of new and the enhancement of existing public and private art and cultural facilities throughout Palo Alto. Ensure that such projects are compatible with the character and identity of the surrounding neighborhood. Policy C-1.16 Provide arts, science and recreational activities that foster healthy children, youth and teen development. Policy C-4.5 Expand the space available in the community for art exhibits, classes and other cultural activities, studios and galleries and other activities made possible by technical innovation, while maintaining and enhancing natural areas. Policy C-1.4 Promote City parks, open spaces, recreational facilities, libraries, classes and cultural activities for community members recognizing that these facilities and services build and strengthen community. Attachments: • ATTACHMENT A: Contract with Charles Sowers Studio, LLC CITY OF PALO ALTO CONTRACT NO: C19173445 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND ARTIST CHARLES SOWERS STUDIOS, LLC FOR PROFESSIONAL SERVICES (FABRICATION AND INSTALLATION OF ARTWORK) This Agreement is entered into on this 14th of May, 2018, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and Charles Sowers Studios, LLC, located at 732 Montecillo Rd., San Rafael, CA 94903 ("ARTIST"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to place and provide an original artwork integrated into the site of the new Junior Museum and Zoo, located at 1451 Middlefield Road in Palo Alto, CA (“Art Work”) and desires to engage an ARTIST to fabricate and install onsite the Art Work (the “Services”). B. ARTIST has represented that he has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Art Work and Services. C. ARTIST was selected by a panel of art professionals and stakeholders from a pool of applicants, as the most qualified to design and fabricate the Art Work. D. The source of funds for the Art Work and Services derives from funds made available from the City of Palo Alto’s CIP funds identified through the Municipal Percent for Art Ordinance #5301. E. CITY in reliance on these representations desires to engage ARTIST to provide the Services as more fully described in Exhibit “A”, attached to and made a part of this Agreement. F. The Art Work is considered a permanent installation. “Permanent Installation” means a work of art in a public place intended to remain or remaining for one year or more after its completion by ARTIST and has an expected lifespan for 20 years, provided, however, CITY may remove the Art Work in a accordance with CITY’s De- Accessioning Policy or as described in Section 16 of this Agreement. Should any damage or impairment occur, CITY will attempt to contact ARTIST before taking further action. G. CITY, through City’s Public Art Program will accession the Art Work into the City’s Collection of Public Art and own all right, title and interest in the Art Work. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF AGREEMENT SECTION 1. SCOPE OF SERVICES. ARTIST shall perform the Services as described in Exhibit “A” in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 30, 2020 unless terminated earlier pursuant to Section 23 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. ARTIST shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit “B”, attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by ARTIST in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the ARTIST. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of ARTIST. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to ARTIST for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed One Hundred and Fifty Seven Thousand Dollars and Five Hundred ($157,500.00). The applicable rates and schedule of payment are set out in Exhibit “C”, entitled “COMPENSATION”, which is attached to and made a part of this Agreement. In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall come out of contingency fund and not exceed 10% ($17,500). 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. The applicable rates and schedule of payment are set out in Exhibit “C”, entitled “COMPENSATION 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”. ARTIST 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 Art Work, but which is not included within the Scope of Services, described in Exhibit “A”. ARTIST agrees that in consideration of the compensation paid under this Agreement, CITY has the option to commission ARTIST to fabricate and install a work of art consistent with the Artwork Design (“Services”) per PSA #S17167129. ARTIST acknowledges that CITY desires that conceptual design and content for the Art Work to be unique. ARTIST agrees to not duplicate the Art Work without the express written consent of CITY. SECTION 5. INVOICES. In order to request payment, ARTIST shall submit invoices to the CITY describing the services performed and the applicable charges (including an identification DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF 2 of personnel who performed the services and reimbursable expenses), based upon the ARTIST’s payment schedule (set forth in Exhibit “C-1”). If applicable, the invoice shall also describe the percentage of completion of each task. The information in ARTIST’s payment requests shall be subject to verification by CITY. ARTIST shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by ARTIST or under ARTIST’s supervision. ARTIST represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. ARTIST represents that it, its employees and subcontractors, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the Services to be furnished by ARTIST under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. ARTIST shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the performance of the Services or those engaged to perform Services under this Agreement. ARTIST shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. ARTIST shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to ARTIST. If ARTIST has prepared plans and specifications or other design documents to construct and install the Art Work, ARTIST shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction and installation of the Art Work. This obligation shall survive termination of the Agreement. SECTION 9. Left blank by agreement of the parties. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement ARTIST, and any person employed by or contracted with ARTIST to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of ARTIST are material considerations for this Agreement. ARTIST shall not assign or transfer any interest in this Agreement nor the performance of any of ARTIST’s obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF ARTIST shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. ARTIST shall be responsible for directing the work of any sub-CONTRACTORs and for any compensation due to sub-CONTRACTORs. CITY assumes no responsibility whatsoever concerning compensation. ARTIST shall be fully responsible to CITY for all acts and omissions of a sub-CONTRACTOR. ARTIST shall change or add sub-CONTRACTORs only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. ARTIST will serve as the project manager with supervisory responsibility for the performance, progress, and execution of the Services. If circumstances cause the substitution of key personnel for any reason, the appointment of substitute personnel will be subject to the prior written approval of the CITY’s project manager. ARTIST, at CITY’s request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City’s Project Manager is Elise DeMarzo, Public Art Program Director, Division of Arts & Sciences, Community Services Department, 1313 Newell Road, Palo Alto, CA 94303, phone: 650-617-3517. The CITY may designate an alternate project manager from time to time. SECTION 14. PROPERTY RIGHTS IN ART WORK; VARA WAIVER. 14.1. CITY commissions ARTIST to design a work of art (the “Art Work”) to be displayed at a location in Palo Alto, as determined by CITY, acting in its sole discretion. Subject to the rights granted by ARTIST to CITY, as described below, and in consideration of the substantial compensation that CITY will pay to ARTIST for the Art Work, CITY acquires all right, title an interest in the Art Work, and ARTIST retains all copyrights in the Art Work that ARTIST will deliver to CITY under this Agreement. 14.2. ARTIST grants to CITY a non -exclusive, royalty-free, irrevocable license to do the following with respect to the Art Work, in whatever media, including, without limitation, digital and electronic media, that now or hereafter are known: (A) use and display the Art Work; (B) make and distribute, and authorize the making and distribution of, two-dimensional images and reproductions of the Art Work; (C) use any images and reproductions for City-related purposes, including, without limitation, advertising-, branding-, education-, information-, promotion- and publicity-related materials; and (D) sublicense the rights granted herein to third parties to fulfill the public art purposes of the City’s commissioning of the Art Work. 14.3. With respect to the Art Work, ARTIST waives any and all claims, arising at any time against CITY, its elected and appointed officials, officers, employees, agents and representatives, that may be grounded in any federal law, including, without limitation, the Visual Artists Rights Act (17 U.S.C. §106A). California law, including, without limitation, the California Art Preservation Act (Cal. Civil Code §987 et seq.), or local law that may relate to the moral rights of ARTIST or protection of the integrity of the Art Work. SECTION 15. ARTIST’S WARRANTY ARTIST represents and warrants that: 15.1. Prior to transfer of title of the Art Work to the City, ARTIST is the sole and absolute owner DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF of the Art Work, the copyrights pertaining to the Art Work, and all the rights associated or relating to it. 15.2. ARTIST has not previously sold, assigned, licensed, granted, encumbered, or utilized the Art Work or any element thereof, in any manner which may affect or impair the rights granted pursuant to this Agreement including without limited to, inhibiting the CITY’s ability to show the work, reproduce the Art Work as defined in Section 22, or maintain/conserve the work into the future. 15.3. All Art Work created by ARTIST under this Agreement, whether created by ARTIST alone or in collaboration with others, is wholly original and does not infringe upon or violate the rights of any third party. 15.4. ARTIST has the full power to enter into and perform this Agreement and to grant the rights contained in this Agreement. 15.5. ARTIST warrants that the Art Work is the result of the artistic efforts of ARTIST and that it will be delivered full and clear of any liens, claims and encumbrances of any type. 15.6. These representations and warranties shall survive the termination or other extinction of this Agreement. SECTION 16. FUTURE MODIFICATION OR RELOCATION. 16.1. CITY has the right to remove the Art Work from the Site at any time. In addition, in the event that any element of the Art Work constitutes a public safety hazard, CITY has the right to remove the element posing the public safety hazard. 16.2. Except to the extent permitted by Section 16.1, CITY agr ees not to intentionally modify the Art Work without first obtaining ARTIST’s written consent. 16.3. CITY shall have the right to donate or sell the Art Work at any time. Before exercising this right, CITY, by written notice to ARTIST at ARTIST’s last known address, agrees to give ARTIST the opportunity to purchase the Art Work for the greater of the price paid by CITY or the amount of any offer which CITY has received for the purchase of the Art Work, plus all costs associated with the removal of the Art Work from the Site, clean-up of the Site and delivery to ARTIST. ARTIST shall have thirty (30) days from the date of CITY’s notice to exerci se the option to purchase the Art Work. 16.4. Without limiting CITY’s rights under Section 16, it is CITY’s practice to notify and consult with ARTIST before intentionally moving, relocating or removing the Art Work. If, after the initial discussion, ARTIST and CITY do not reach a mutually agreeable decision regarding relocation or modification of an Art Work, or do not agree upon compensation to ARTIST for providing ARTIST’s input on proposed relocation or modification, CITY may take such actions as CITY deems necessary in the management of its Art Work, and no further agreement or compensation is due to ARTIST. SECTION17. MAINTENANCE 17.1. MAINTENANCE, REPAIRS AND RESTORATION DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF As a condition of and prior to final acceptance of the Work, ARTIST shall supply CITY with written maintenance instructions. During ARTIST’s lifetime, ARTIST shall supply, at no charge, advice as to problems arising in relation to maintenance of the Work. CITY shall have the right to determine, after consultation with ARTIST and a professional conservator, when and if repairs and restorations to the Art Work will be made. It is the policy of CITY to consult with ARTIST regarding repairs and restoration which are undertaken during ARTIST’s lifetime when that is practicable. CITY shall make every reasonable effort to consult with ARTIST and a professional conservator in all matters concerning repairs and restoration of the work. In the event that CITY makes repairs or restoration not approved by ARTIST, ARTIST shall have the right, at ARTIST’s sole option, to have ARTIST’s association with Art Work severed. 17.2. STANDARDS OF REPAIRS AND RESTORATION ARTIST shall provide a one-year warranty regarding the Art Work and perform maintenance at no cost to CITY. During the life of the Art Work, ARTIST shall provide maintenance for an additional service fee, with the prior approval of CITY’s project manager. All repairs and restorations, whether performed by ARTIST, CITY, or by third parties responsible to ARTIST or CITY, shall be made in accordance with professionally recognized principles of conservation of Art Works and in accordance with the maintenance instructions provided to CITY by ARTIST. SECTION 18. OWNERSHIP OF MATERIALS. Upon delivery, all work products, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. SECTION 19. AUDITS. ARTIST will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, ARTIST’s records pertaining to matters covered by this Agreement. ARTIST further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 20. INDEMNITY. 20.1. To the fullest extent permitted by law, ARTIST shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements (“Claims”) arising from the negligence or misconduct of ARTIST, its officers, employees, agents or contractors under this Agreement. 20.2. Notwithstanding the above, nothing in this Section 20 shall be construed to require ARTIST to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 20.3. The acceptance of ARTIST’s services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 20 shall survive the expiration or early termination of this Agreement. SECTION 21. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 22. INSURANCE. 22.1. ARTIST, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". ARTIST and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 22.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of ARTIST retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 22.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to ARTIST, ARTIST shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the ARTIST’s receipt of such notice. ARTIST shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Purchasing Manager during the entire term of this Agreement. 22.4. The procuring of such required policy or policies of insurance will not be construed to limit ARTIST's liability hereunder nor to fulfill the indemnification provisions of this Agreement. SECTION 23. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 23.1. The City Manager may suspend the performance of the Agreement, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to ARTIST. Upon receipt of such notice, ARTIST will immediately discontinue its performance of the Agreement. 23.2. ARTIST may terminate this Agreement or suspend its performance by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 23.3. Upon such suspension or termination, ARTIST shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by ARTIST or its contractors, if any, or given to ARTIST or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 23.4. Upon such suspension or termination by CITY, ARTIST will be paid for the Services DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by ARTIST, CITY will be obligated to compensate ARTIST only for that portion of ARTIST’s services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise of his/her discretion. 23.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 24. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Public Art Program Manager Public Art Program City of Palo Alto 1313 Newell Road Palo Alto, CA 94303 To ARTIST: Attention of the project director at the address of ARTIST recited above SECTION 25. CONFLICT OF INTEREST. 25.1. In accepting this Agreement, ARTIST covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 25.2. ARTIST further covenants that, in the performance of this Agreement, it will not employ sub-ARTISTs, contractors or persons having such an interest. ARTIST certifies that no person who has or will have any financial interest under this Agreement is an officer o r employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. SECTION 26. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, ARTIST certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF or height of such person. ARTIST acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF SECTION 27. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. ARTIST shall comply with the City’s Environmentally Preferred Purchasing policies which are available at the City’s Purchasing Department, incorporated by reference and may be amended from time to time. ARTIST shall comply with waste reduction, reuse, recycling and disposal requirements of the City’s Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, ARTIST shall comply with the following zero waste requirements: All printed materials provided by ARTIST to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by the City’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post- consumer material and printed with vegetable based inks. Goods purchased by ARTIST on behalf of the City shall be purchased in accordance with the City’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. Reusable/returnable pallets shall be taken back by the ARTIST, at no additional cost to the City, for reuse or recycling. ARTIST shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 28. NON-APPROPRIATION 28.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by the laws of the State of California. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 29.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF 29.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, ARTIST’s heirs, successors, executors, administrators, and assignees. 29.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 29.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 29.8 If, pursuant to this contract with ARTIST, City shares with ARTIST personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), ARTIST shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. ARTIST shall not use Personal Information for direct marketing purposes without City’s express written consent. / / / / / / / / / / / / / / / / / / / / DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF 29.10 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 29.11 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement 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 ____________________________ City Manager CHARLES SOWERS STUDIO, LLC. By:___________________________ Name:_________________________ Title:__________________________ Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “D”: INSURANCE REQUIREMENTS DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF President, Charles Sowers Studios, LLC Charles Sowers EXHIBIT “A” SCOPE OF SERVICE BACKGROUND The purpose of this agreement is to outline the scope of work for the fabrication and installation of an original artwork designed by artist Charles Sowers to be integrated into the site of the new Junior Museum and Zoo, located at 1451 Middlefield Road in Palo Alto, CA. The new JMZ will be a single story building featuring a new museum and education building, outdoor zoo with netted enclosure, and perimeter site improvements on the site of the former facilities. The development project scope was developed in coordination with the Rinconada Park Master Plan for the surrounding park, parking lot and adjacent public facilities. The original artwork will support the JMZ mission to engage a child’s curiosity for science and nature. Under the scope of work for the Professional Services Agreement # S17167129 artist Charles Sowers created conceptual design for the original artwork approved by the Public Art Commission on November 16, 2017. The approved conceptual design is for pendulum swings, a group of four to five 40- foot tall counterbalanced pendulums extend above the roofline through an opening in the roof of the JMZ building entrance plaza. It is mutually understood by the City and Artist that some level of refinement to the conceptual design and engineering may take place. Should the initial conceptual design as approved by the Public Art Commission shift significantly, staff will report back to the Public Art Commission on those changes. SCOPE OF WORK Artist Charles Sowers will fabricate and oversee onsite installation of an original artwork based on the conceptual design approved by staff and Public Art Commission on November 16, 2017 per Professional Services Agreement # S17167129 with the Artist. The original artwork, tentatively titled as Pendulum Swings, will be a group of four to five 40-foot tall counterbalanced pendulums that extend above the roofline through an opening in the roof of the JMZ, integrated in the main entrance space of the new facility. The pendulums will be activated by the JMZ visitors who would push or ride them, and may move in the wind. The sails at the top of the pendulums will wave above the rooftop of the Junior Museum and Zoo. The interactive kinetic artwork will actively engage the audiences of all ages, and help to provide a meaningful and enriching experience. The artwork will be well-integrated and accessible to the public of all ages and abilities in the free areas of the JMZ facility. Under the scope of this agreement, the Artist will: - Work with the City staff and design team to refine final concept design and engineering for the artwork as needed. - Provide construction and engineering documentation, including stamped S.E. drawings and material safety data info from fabricator to the Public Art Program staff; - Provide notice to proceed with fabrication to the City of Palo Alto Project Manager; DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF - Oversee all aspects of fabrication and final inspection prior to transportation onsite, with detailed documentation and possible visits from the City of Palo Alto Project Manager to inspect the work; - Work with Public Art Program staff and contractors to coordinate the installation of any art-related infrastructure to be installed on site prior to the installation of artwork; - Be responsible for transportation of the artwork to site, site preparation, installation and testing on site by contractor(s) approved by the City pursuant to Section 12 (“Subcontracting”) of this Agreement - If Artist does not travel on site: oversee secure crating and shipment to site, provide detailed instructions for installation and on-site tests, including hiring a City-approved subcontractor to oversee the installation. - Provide digital file & As-Built drawings as well as maintenance and care instructions for staff. PREVAILING WAGE REQUIRED FOR INSTALLATION CONSULTANT agrees that all installation work to be performed at and on City property pursuant to this Agreement is subject to applicable federal, state and local prevailing wage laws and regulations, and CONSULTANT shall ensure that all such work is implemented, paid, documented and administered in compliance with such laws and regulations. Responsibilities of City of Palo Alto: - Facilitate meetings with the design team, contractors, stakeholder groups, relevant staff and the Public Art Commission. - Coordinate communication and supply architectural drawings and building/project information as needed for fabrication and installation. - Produce and install an identification plaque for the artwork. DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF EXHIBIT “B” SCHEDULE OF PERFORMANCE ARTIST shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for ARTIST and CITY so long as all work is completed within the term of the Agreement. ARTIST shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. TIMELINE - TASK September 2018 – Contract Approved by City Council and Signed by the City and Artist September 2018 - June 2020 – Fabricate artwork Summer 2020 – Installation on site. DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF EXHIBIT “C” COMPENSATION The compensation to be paid to ARTIST under this Agreement for all services described in Exhibit “A” (“Services”) and reimbursable expenses shall not exceed $157,500. ARTIST agrees to complete all Services, including reimbursable expenses, within this amount. 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. BUDGET $157,500 inclusive of all artist fees, and exclusive of 10% contingency. COMPENSATION SCHEDULE: 30% - Upon signing the contract. 50% - Upon notice to proceed with fabrication. 20% - Upon completion of delivery, installation, submission of documentation and acceptance of artwork by City staff. ADDITIONAL SERVICES ARTIST shall provide additional services only by advanced, written authorization from the CITY. ARTIST, at 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 ARTIST’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by CITY’s project manager and ARTIST prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES WORKER’S COMPENSATION YES EMPLOYER’S LIABILITY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE,COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS” A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF DocuSign Envelope ID: 4D765C33-F93C-410C-AB9D-A6ED536C2EFF Certificate Of Completion Envelope Id: 4D765C33F93C410CAB9DA6ED536C2EFF Status: Completed Subject: Please DocuSign: PSA - FINAL DRAFT (APPROVED_TS 8-8)C19173445.pdf Charles Sowers Source Envelope: Document Pages: 18 Signatures: 1 Envelope Originator: Certificate Pages: 2 Initials: 0 Cecilia Magana AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 cecilia.magana@cityofpaloalto.org IP Address: 12.220.157.20 Record Tracking Status: Original 8/29/2018 9:06:19 AM Holder: Cecilia Magana cecilia.magana@cityofpaloalto.org Location: DocuSign Security Appliance Status: Connected Pool: City of Palo Alto Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Charles Sowers charlessowers@gmail.com President, Charles Sowers Studios, LLC Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 73.92.52.121 Sent: 8/29/2018 9:16:59 AM Viewed: 8/29/2018 12:07:38 PM Signed: 8/29/2018 12:11:57 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 Elise DeMarzo Elise.DeMarzo@CityofPaloAlto.org Manager Community Services Sr. Program City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 8/29/2018 12:11:59 PM Viewed: 8/29/2018 3:53:05 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Nadya Chuprina Nadya.Chuprina@CityofPaloAlto.org Program Assistant II City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 8/29/2018 12:11:59 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 8/29/2018 12:11:59 PM Certified Delivered Security Checked 8/29/2018 12:11:59 PM Signing Complete Security Checked 8/29/2018 12:11:59 PM Completed Security Checked 8/29/2018 12:11:59 PM Payment Events Status Timestamps City of Palo Alto (ID # 9583) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/1/2018 City of Palo Alto Page 1 Summary Title: Adoption of MOA for PMA, IAFF, and FCA Title: Adoption of a new Memorandum of Agreement With the Palo Alto Police Management Association (PAPMA), International Association of Fire Fighters (IAFF), Local 1319, and Palo Alto Fire Chiefs' Assoc iation (PAFCA); and Approval of a Budget Amendment in the General Fund From: City Manager Lead Department: Human Resources Recommendation Staff recommends that the City Council 1) Adopt new Memoranda of Agreement (MOA) for the Palo Alto Police Management Association (PAPMA), International Association of Fire Fighters Local 1319 (IAFF), and Palo Alto Fire Chiefs Association (PAFCA); and 2) Amend the Fiscal Year 2019 Budget Appropriation Ordinance for the General Fund by: a. Increasing the expense appropriation in the Fire Department by $685,000 and; b. Decreasing the Budget Stabilization Reserve by $685,000. Overview 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 comprised of Human Resources staff and management representatives, met with labor representatives in good faith and successfully reached tentative agreements. 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 A summary of the full terms are attached to this memo, as well as the proposed Memoranda of Agreement. The three labor organizations that reached tentative agreements with the City are: International Association of Fire Fighters Local 1319, which is comprised of 88 Full Time Exempt employees (FTE’s) from Firefighter Paramedics to Fire Captains Fire Chiefs Association is comprised of 4 FTE’s exclusively representing Battalion Chiefs Police Management Association is comprised of 7 FTE’s and represents Lieutenants and Captains Background Each of the three labor agreements had contract expirations effective June 30, 2018 and all three new agreements have expiration dates of June 30, 2021. The p arties did not reach mutual agreement prior to the expiration, however continued to negotiate through the summer months with urgency and resolve until agreements were reached. At direction of Council and City leadership, the Human Resources department offered alternative bargaining methods2 to these units, which should be credited with much of the success and timely closure of these negotiations. The new terms of these tentative agreements are intended to (1) allow the City to be successful in retaining current Public Safety personnel, (2) remain competitive in this challenging market, and (3) recognize the value of retiree health in the total compensation package offered to each employee group. The terms in each agreement being brought to Council include: Pension Contributions: In addition to employees paying their full member contribution toward pension costs3, the City continued down the path of increased Employee cost sharing. Employees in these units will be paying an additional 1% of their salary to wards the Employer’s pension costs for a total of 4% contributions toward the Employer’s pension costs. In total with the employee’s 9% member contribution, this means that Classic CalPERS members will be paying 13% of the annual salary towards CalPERS pension costs. Capped Medical Costs: The City is further limiting its risk to taking on uncontrolled medical cost increases by limiting the increases to our flat rate medical contributions. The City will increase the medical contribution by 4% effective January 1, 2019 but will hold it at this level through the life of the contract. Operational issues: In addition to economic proposals, a number of operational issues, such as shift schedules, training practices, alternate service delivery models and in range 2 Through Council approval City staff offered all bargaining units the option of negotiating without outside legal counsel being present at the table, IAFF, FCA, and PMA all opted to utilize this method. 3 This varies based on CalPERS status between Pepra and classic Safety members City of Palo Alto Page 3 salary movement were discussed and resolved4 as a part of these negotiations. Many of these issues are a part of long term strategic City and Council priorities which will span multiple contract cycles. With this in mind, the parties agreed to leave certain contract sections5 open for additional discussion and refinement. Summary of Salary Adjustments included in agreements (1) Palo Alto Police Management Association (PAPMA) Term: Expires June 30, 2021 General Salary Adjustment for Lieutenants: 4% Effective first full pay period following adoption, 4% Effective first full pay period following July 1, 2019, 4% Effective first full pay period following July 1, 2020 General Salary Adjustment for Captains: 1% Effective first full pay period following adoption, 4% Effective first full pay period following July 1, 2019, 4% Effective first full pay period following July 1, 2020 (2) International Association of Fire Fighter Local 1319 (IAFF) Term: Expires June 30, 2021 General Salary Adjustment: 3% Effective first full pay period following adoption, 3% Effective first full pay period following July 1, 2019, 3% Effective first full pay period following July 1, 2020 Market Adjustment: 2.5% Effective first full pay period following adoption Other Economics: Bilingual Differential, Paramedic Training Stipend, City Contribution to Deferred Compensation6 (3) Palo Alto Fire Chiefs Association (PAFCA) Term: Expires June 30, 2021 General Salary Adjustment: 3% Effective first full pay period following adoption, 3% Effective first full pay period following July 1, 2019, 3% Effective first full pay period following July 1, 2020 Market Adjustment: 2.5% Effective first full pay period following adoption Summary of Medical Benefit Changes Medical Premium PEMHCA Total Maximum Total Maximum City 4 Examples include items such as updating of 2 Fire Department policies related to weekend assignments and training 5 Examples of sections left open include but not limited to: Strike team relief, Alternate staffing models 6 Each of these economic factors is covered in detail in the summary of terms attachment City of Palo Alto Page 4 Category Contribution* City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 Resource Impact The total costs over the three-year term of the contracts would be $6.6 million in the General Fund. The FY 2019 Budget and the FY 2019 – FY 2028 General Fund Long Range Financial Report modeled a 2.0% annual general wage increase as well as a 4.0% increase in annual medical costs and projected increases in pension costs. Once adjusted for these costs already presumed in the financial modeling, it is anticipated these contracts would result in additional costs of approximately $892,000 in the General Fund in FY 2019, $1.2 million in FY 2020, and $1.4 million in FY 2021, totaling $3.5 million in costs above previous budget forecasts . However, since the FY 2019 impact begins in October instead of July, the FY 2019 costs are lessened somewhat, resulting in the necessary FY 2019 budget amendment of $685,000 in the Fire Department and total costs over the term of the contracts of $3.3 million . The tables below detail the costs by unit for the three contracts. These costs will be factored into both the development of the FY 2020 – FY 2029 Long Range Financial Forecast and the FY 2020 Operating Budget. Table 1. Marginal Costs of IAFF MOA ($000s) FY 2019 FY 2020 FY 2021 Total Budget/LRFF $25,833 $26,998 $28,042 $80,873 Marginal Costs of Contract* $650 1,105 $1,261 $3,016 * Estimates for Marginal Costs assume that new terms begin in October 2018. Table 2. Marginal Costs of FCA MOA ($000s) FY 2019 FY 2020 FY 2021 Total Budget/LRFF $1,394 $1,459 $1,519 $4,372 Marginal Costs of Contract* $35 $62 $68 $165 * Estimates for Marginal Costs assume that new terms begin in October 2018. Table 3. Marginal Costs of PAPMA MOA ($000s) City of Palo Alto Page 5 FY 2019 FY 2020 FY 2021 Total Budget/LRFF $2,657 $2,788 $2,908 $8,353 Marginal Costs of Contract* $(17) $29 $68 $81 * Estimates for Marginal Costs assume that new terms begin in October 2018. Although nominal savings are projected in FY 2019 with the agreement with Palo Alto Police Management Association unit, no budgetary adjustment is recommended in FY 2019. The graph below shows the full impacts for the safety bargaining units new contracts including Palo Alto Peace Officers Association (PAPOA). PAPOA’s MOA was approved on June 25, 2018 as part of CMR# 9320. Table 4. Marginal Cost of All Safety MOAs over Budgetary Assumptions (including PAPOA) Policy Implications This contract is consistent with the City’s Guiding Labor Principles adopted by Council on April 9, 2012. Environmental Review Adoption of a MOA affecting the wages, hours and working conditions of City employees is not a project under the California Environmental Quality Act (CEQA). Attachments: Summary of Terms Redline PAPMA MOA 2018-2021 (PDF) City of Palo Alto Page 6 Clean PAPMA MOA 2018-2021 (PDF) Redline IAFF MOA 2018-2021 (PDF) Clean IAFF MOA 2018-2021 (PDF) Redline FCA MOA 2018-2021 (PDF) Clean FCA MOA 2018-2021 (PDF) Attachments: Summary of Terms IAFF 18-21 MOA clean Final unsigned IAFF 18-21 MOA redline final unsigned FCA 18-21 MOA clean FINAL unsigned FCA 18-21 MOA redline FINAL unsigned PMA MOA 18-21 clean final unsigned PMA MOA 18-21 Redline final unsigned Summary of Terms for Council October 1, 2018 (IAFF, FCA, PMA) International Association of Fire Fighters Local 1319 Article/Section Change Article III Agency Shop Updated to reflect needed legal changes based on Supreme Court Ruling. Article VI- Probationary Period Revised to be 14 months of service from a Firefighter’s graduation from the Academy, excluding any extended leaves, ie. Medical or military. Article VII- Salary Provisions Base Salary increase 3% per year. Market increase of 2.5% effective first full pay period following adoption Article VII- Pay Differentials (1) Revised section in order to address operational issue regarding acting captains receiving both acting pay and paramedic pay while assigned as a captain. (2) New bilingual pay premium, for Fire employees who certify their ability to fluently interact with members of our community in several key languages. A differential of 5% will be paid to these employees as long as they maintain their certification. Article XX- Health Benefits Aligning all public safety units to one flat rate medical. City will contribute the following amounts for the term of the MOA: Employee- $840 Employee plus one- $1680 Employee Family- $2180 Article XI- Apparatus staffing More flexibility in classification that can be assigned to truck companies. Article XXIII- Retirement Benefits (1) Effective first full pay period following July 1, 2020 employees will contribute an additional 1% to the employer PERS contributions for a total of 4% (2) Effective the first full pay period following July 1, 2020 the employer will contribute Summary of Terms for Council October 1, 2018 (IAFF, FCA, PMA) 1% of pensionable income to employees 457 plans. Article XV- Paramedic Assignment Field training stipend- Employees who are assigned to provide in the field training for new paramedics shall receive a one-time $300 stipend upon successful training of the new paramedic. Article XVI- Fire Fighter Apprentice Program Removed from MOA. Article XXXVII- House Fund Eliminate delivery of newspapers to each station and increase house fund to $100 per year, per employee. Article XXXIX- Grievances Grievances may be filed over department procedures, policies, and rules. Article XLII- 48/96 work schedule This shall be the regular schedule for the department. Article XLIV- Future Service Delivery Models During the term of this agreement at the City’s request, the parties will meet and confer in good faith over alternate service delivery models related to transport and/or inspection services. Article XLV- Duration Adoption by council through June 30, 2021. Fire Department Policy 205.6 Updated to reflect 48/96 schedule and allows for weekend trainings. Fire Department Policy 1009.8.1 Reporting for duty updated based on 48/96 schedule. Appendix B- Letter of intent The parties during the term of this agreement will continue to discuss the implementation of a strike team relief program for Fire fighter returning from emergency deployments. Summary of Terms for Council October 1, 2018 (IAFF, FCA, PMA) International Association of Fire Fighters Local 1319 Palo Alto Fire Chiefs Association Article/Section Change Article III Agency Shop Updated to reflect needed legal changes based on Supreme Court Ruling. Article V- Salary Provisions Base Salary increase 3% per year. Market increase of 2.5% effective first full pay period following adoption Article VIII- Vacation Cash Out Entire allocation must be taken at one time, once per calendar year. Article XVI- Health Benefits Aligning all public safety units to one flat rate medical. City will contribute the following amounts for the term of the MOA: Employee- $840 Employee plus one- $1680 Employee Family- $2180 Article XXIII- Retirement Benefits (3) Effective first full pay period following July 1, 2020 employees will contribute an additional 1% to the employer PERS contributions for a total of 4% (4) Effective the first full pay period following July 1, 2020 the employer will contribute 1% of pensionable income to employees 457 plans. Article XXIV- House Fund Eliminate delivery of newspapers to each station and increase house fund to $100 per year, per employee. Article XVII- Duration Adoption by council through June 30, 2021. Article XXVIII- 48/96 work schedule This shall be the regular schedule for the department. Summary of Terms for Council October 1, 2018 (IAFF, FCA, PMA) Palo Alto Police Manager’s Association Article/Section Change Section 3. Salary Lieutenants: 4% salary increase per year Captains: 1% first full pay period following adoption, 4% each subsequent year Section 4. Working Out of Class Bring in to accordance with government code 20480. Section 6. Health Plans Aligning all public safety units to one flat rate medical. City will contribute the following amounts for the term of the MOA: Employee- $840 Employee plus one- $1680 Employee Family- $2180 Section 19. Retirement Benefits Effective the first full pay period following June 30, 2021, all unit members shall contribute an additional 1% to the Employer Pension rate for a total of 4% contribution to Employer pension rate. (Total Employee contribution will be 13% for Classic; 50% of Normal Rate plus 4% for PEPRA.) Section 21. ICMA – Retirement Health Savings Plan Eliminate 2. Each member within 5 years of minimum retirement age 50 shall contribute an additional 1% toward base salary bi- weekly Eliminate 3. Upon retirement from the city, each member shall contribute the then cash value of 100 hours of vacation into the plan Section 50. Duration 3 years, expiring June 30, 2021 1 MEMORANDUM OF AGREEMENT Between CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319 October 1, 2018 – June 30, 2021 2 PREAMBLE __________________________________________________________ 7 ARTICLE I - RECOGNITION _____________________________________________ 7 Section 1. Recognition. ______________________________________________________ 7 ARTICLE II - NO DISCRIMINATION _______________________________________ 7 Section 1. No Discrimination. __________________________________________________ 7 Section 2. Free Choice. ______________________________________________________ 7 Section 3. Human Relations Committee. _________________________________________ 7 ARTICLE III - PAYROLL DEDUCTIONS ____________________________________ 7 Section 1. Payroll Deductions and Written Authorization. ____________________________ 8 Section 2. Certification of Union Membership _____________________________________ 8 Section 3. Indemnification ____________________________________________________ 8 ARTICLE IV - UNION ACTIVITIES ________________________________________ 8 Section 1. On-Duty Time. _____________________________________________________ 8 Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. ______________________________ 8 Section 3. Use of Meeting Places. ______________________________________________ 9 ARTICLE V - NO STRIKES ______________________________________________ 9 Section 1. No Strikes. ________________________________________________________ 9 ARTICLE VI - PROBATIONARY PERIOD __________________________________ 9 Section 2. Part of Testing Process. _____________________________________________ 9 Section 3. Suspension or Termination. __________________________________________ 9 ARTICLE VII - SALARY PROVISIONS ____________________________________ 10 Section 1. Base Wage Rates. ________________________________________________ 10 Section 2. Out-of-Class Compensation. _________________________________________ 10 Section 3. Pay for Court Appearance. __________________________________________ 11 Section 4. Classifications ____________________________________________________ 11 ARTICLE VIII - PAY DIFFERENTIALS ____________________________________ 12 Section 1. Paramedic Differential. _____________________________________________ 12 Section 2. Haz Mat Differential. _______________________________________________ 12 Section 3. Fire Inspector Differential. __________________________________________ 12 Section 4. EMT Differential. __________________________________________________ 12 Section 5. Bilingual Pay _____________________________________________________ 12 ARTICLE IX - HOLIDAYS ______________________________________________ 13 Section 1. Named Holidays. __________________________________________________ 13 Section 2. Conditions. ______________________________________________________ 14 ARTICLE X - OVERTIME COMPENSATION _______________________________ 14 Section 1. Compensation. ___________________________________________________ 14 3 ARTICLE XI - APPARATUS STAFFING ___________________________________ 14 ARTICLE XII - FIRE DEPARTMENT PROGRAMS ___________________________ 15 Section 1. Programs. _______________________________________________________ 15 ARTICLE XIII - WORK ASSIGNMENTS AND TRANSFERS ___________________ 15 Section 1. Shipouts. _______________________________________________________ 15 Section 2. Vacation Relief Positions. ___________________________________________ 16 Section 3. Transfer Requests. ________________________________________________ 16 Section 4. Special Assignments. ______________________________________________ 16 Section 5. Continuous Hourly Service. __________________________________________ 16 ARTICLE XIV - TRAINING COORDINATION _______________________________ 17 Section 1.Coordination ______________________________________________________ 17 ARTICLE XV - PARAMEDIC ASSIGNMENT _______________________________ 17 Section 1. Limit of Eligibility. __________________________________________________ 17 Section 2. Additional Candidate Training. _______________________________________ 17 Section 3. Incentives. _______________________________________________________ 17 Section 4. Proctoring. _______________________________________________________ 17 Section 5. Field Training Stipend. _____________________________________________ 17 ARTICLE XVI - PROMOTION ___________________________________________ 18 Section 1. Promotion Step Level. ______________________________________________ 18 Section 2. Promotion Process Information. ______________________________________ 18 ARTICLE XVII - REDUCTION IN FORCE __________________________________ 18 Section 1. Order of Reduction. ________________________________________________ 18 ARTICLE XVIII - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY _____ 18 Section 1. In Case of Emergency ______________________________________________ 18 ARTICLE XIX - HEALTH BENEFITS ______________________________________ 18 Section 1. Maintenance of Levels _____________________________________________ 18 Section 2. Vision Care. ______________________________________________________ 18 Section 3. PEMHCA Health Plan. _____________________________________________ 19 ARTICLE XX - DENTAL BENEFITS ______________________________________ 21 Section 1. Level of Benefits. __________________________________________________ 21 Section 2. Premiums. _______________________________________________________ 21 ARTICLE XXI - LIFE INSURANCE _______________________________________ 21 Section 1. Premiums. _______________________________________________________ 21 ARTICLE XXII - RETIREMENT BENEFITS _________________________________ 21 Section 1. PERS Retirement Formula. __________________________________________ 21 Section 2. PERS Member Contribution. ________________________________________ 22 4 Section 3. Additional Employee PERS contributions _______________________________ 22 Section 4. Option 2 Death Benefit. _____________________________________________ 23 Section 5. Military Service Credit. _____________________________________________ 23 Section 6. 1959 Survivor Benefit. _____________________________________________ 23 Section 7. Employer Contributions to 457 Plan ___________________________________ 23 ARTICLE XXIII - RETIREMENT MEDICAL PLAN ___________________________ 23 Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: ____ 23 Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: ____________________________________________________ 24 ARTICLE XXIV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) ________ 24 Section 1. DCAP. __________________________________________________________ 24 ARTICLE XXV - VACATION ACCRUAL ___________________________________ 24 Section 1. Accrual Rate. _____________________________________________________ 24 Section 2. Unused At Termination. _____________________________________________ 24 Section 3. Limits. __________________________________________________________ 25 ARTICLE XXVI - USE OF VACATION ____________________________________ 25 Section 1. Maximum Number of Slots __________________________________________ 25 Section 2. Approvals. _______________________________________________________ 25 Section 3. Vacation Pay. ____________________________________________________ 25 Section 4. Illness on Vacation. ________________________________________________ 25 Section 5. When to be Taken. ________________________________________________ 25 Section 6. Limitation on Use. _________________________________________________ 25 Section 7. Waiting Period. ___________________________________________________ 25 Section 8. Double Compensation Prohibited. _____________________________________ 25 Section 9. Cash out Option. __________________________________________________ 26 ARTICLE XXVII - SICK LEAVE __________________________________________ 26 Section 1. Statement of Policy. _______________________________________________ 26 Section 2. Eligibility ________________________________________________________ 26 Section 3. Accrual. _________________________________________________________ 26 Section 4. Accumulation. ____________________________________________________ 26 Section 5. Use. ____________________________________________________________ 26 Section 6. Depletion of Sick Leave Benefits. _____________________________________ 27 Section 7. Forfeiture Upon Termination. ________________________________________ 27 Section 8. Payment for Accumulated Sick Leave. _________________________________ 27 Section 9. Personal Business Leave Chargeable to Sick Leave. ______________________ 27 Section 10. Return to Work or Continue Work With Limited Duty. _____________________ 27 5 ARTICLE XXVIII - SUBPOENAS _________________________________________ 28 ARTICLE XXIX - WORKERS' COMPENSATION ____________________________ 28 Section 1. Status Reporting While on Disability. __________________________________ 28 ARTICLE XXX - PHYSICAL FITNESS MEDICAL EXAMINATIONS ______________ 28 ARTICLE XXXI- LEAVES OF ABSENCE WITHOUT PAY _____________________ 28 Section 1. Disability. ________________________________________________________ 28 Section 2. Other Leaves. ____________________________________________________ 28 Section 3. Accrued Vacation Credits. ___________________________________________ 28 Section 4. Approval of Department Head ________________________________________ 29 Section 5. Approval by City Manager. __________________________________________ 29 Section 6. Absence Without Leave. ____________________________________________ 29 Section 7. Leave of Absence; Death Outside the Immediate Family. __________________ 29 Section 8. Military Leave of Absence ___________________________________________ 29 Section 9. Use of paid accruals while on leave. ___________________________________ 29 ARTICLE XXXII - LEAVES OF ABSENCE WITH PAY ________________________ 29 Section 1. City Manager Granted Leaves. _______________________________________ 29 Section 2. Council Granted Leave. _____________________________________________ 29 Section 3. Employee's Time Off to Vote. ________________________________________ 29 Section 4. Leaves of Absence; Death in Immediate Family. _________________________ 29 Section 5. Jury Duty; Leave of Absence. ________________________________________ 30 ARTICLE XXXIII – VOLUNTEER LEAVE PROGRAM ________________________ 30 ARTICLE XXXIV- TUITION REIMBURSEMENT _____________________________ 31 Section 1. Options. _________________________________________________________ 31 ARTICLE XXXV - PER DIEM TRAVEL EXPENSES __________________________ 32 Section 1. City Business. ____________________________________________________ 32 ARTICLE XXXVI - HOUSE FUND ITEMS __________________________________ 32 Section 1. Station House Fund. _______________________________________________ 32 Section 2. Non-Food House Items _____________________________________________ 32 ARTICLE XXXVII - PARKING ___________________________________________ 32 Section 1. Entitlements. _____________________________________________________ 32 ARTICLE XXXVIII- GRIEVANCES _______________________________________ 32 Step II ___________________________________________________________________ 33 Step III __________________________________________________________________ 33 Step IV __________________________________________________________________ 33 ARTICLE XXXIX- SAFETY COMMITTEE __________________________________ 35 Section 1. Committee _______________________________________________________ 35 6 ARTICLE XL – MISCELLANEOUS _______________________________________ 35 Section 1. T-Shirts. _________________________________________________________ 35 Section 2. Removal of Disciplinary Actions. ______________________________________ 35 ARTICLE XLI - FULL UNDERSTANDING _________________________________ 35 Section 1. Full and Entire Understanding ________________________________________ 35 Section 2. Fair Labor Standards Act. ___________________________________________ 35 Section 3. Severability. ______________________________________________________ 35 Section 4. Good Faith. ______________________________________________________ 35 Section 5. Merit System Rules and Regulations. __________________________________ 35 Section 6. Station Consolidation or Relocation ___________________________________ 36 Section 7. Meet and Confer. __________________________________________________ 36 ARTICLE XLII – 48/96 Work Schedule ___________________________________ 36 ARTICLE XLIII – FUTURE SERVICE DELIVERY MODELS ____________________ 36 ARTICLE XLIV - DURATION ____________________________________________ 36 APPENDIX A ________________________________________________________ 39 APPENDIX B ________________________________________________________ 48 7 MEMORANDUM OF AGREEMENT CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319 October 1, 2018 - June 30, 2021 PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and Local 1319, International Association of Fire Fighters, hereinafter referred as the "Union", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. Recognition. The City recognizes the Union as the exclusive representative of an employee group consisting solely of the classifications of Fire Apparatus Operator, Fire Fighter, Fire Captain, Fire Captain (forty-hour assignment), Fire Inspector, Hazardous Materials Specialist, and Hazmat Inspector, who are regularly employed by the City and others as amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. ARTICLE II - NO DISCRIMINATION Section 1. No Discrimination. The Union and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Union, or participation in the lawful activities of the Union. Section 2. Free Choice. The Union and the City hereby 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. Section 3. Human Relations Committee. A Human Relations Committee will include up to five members appointed by the Union executive b oard and at least two members of management with representation from the Fire and Human Resources Departments. The committee may make recommendations to management regarding recruitment outreach, equal employment opportunity and career development programs. ARTICLE III - PAYROLL DEDUCTIONS 8 Section 1. Payroll Deductions and Written Authorization. The City shall deduct Union membership dues assessments and insurances authorized by the Union. This will be accomplished by payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on a Union authorization card. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain auth orizations for dues deduction, 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. The City shall remit the deducted dues to the Union as soon as possible after deduction. Section 2. Certification of Union Membership. The Union agrees to provide the City an initial certified list of members and 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. From that point forward the Unio n will update the list whenever there are changes. Section 3. Indemnification. The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article. The Union shall comply with all statutory and legal requirements with respect to this article. ARTICLE IV - UNION ACTIVITIES Section 1. On-Duty Time. Local 1319 officers may use a reasonable amount of on- duty time to attend to Union business specifically related to representation of employees so long as: a. Staffing is available b. Operations are not interrupted c. Advance approval is obtained from the Battalion Chief or Operations Chief Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. The Union shall have access to interoffice mail and 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 meeting s, result of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Operations Chief or Fire Chief. Action on approval will be taken within 24 hours of submission. The Union may send e-mail messages only for the purposes set forth above. The I.T. Division will maintain the IAFF list. The Union access to e -mail is based on the following conditions: 9 a. E-Mails to the IAFF list will be copied to the Fire Chief or Operations Chief at distribution. b. E-Mails to the IAFF list will only be sent by the Executive Board Members. Section 3. Use of Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during non -working hours or as subject to Battalion Chief approval. Such meeting places will be made available in conformity with City regulations and subject to the limitations of prior commitment. ARTICLE V - NO STRIKES Section 1. No Strikes. The Union, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Union, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE VI - PROBATIONARY PERIOD Section 1. Tentative and Subject to Probationary Period. All original appointments to regular or part-time municipal service positions shall be tentative and subject to a probationary period. This probationary period shall include the fire training academy and an additional fourteen (14) months after completion of the academy, excluding time off for extended leaves of absence. Section 2. Part of Testing Process. The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing all aspects of the employee's qualifications, for ensuring the effective adjustment of a new employee to the position and for rejecting any probationary employee who, in the opinion of management, is not suitable to attain permanent status. Section 3. Suspension or Termination. During the probationary period a new employee may be suspended or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. Said em ployee shall not have the right to proceed to arbitration on the issue of arbitrability or on the issue of its constitutional or discovery rights, nor those of any employee by reason of the foregoing. The Union shall not be a party to any lawsuit relating to the termination of a probationary employee. 10 ARTICLE VII - SALARY PROVISIONS Section 1. Base Wage Rates. a. The base wage rates of bargaining unit classifications will be as set forth in Appendix A of this MOA. b. Base Salary: Effective the first full pay period following Council adoption, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. c. Market Increase: Effective the first full pay period following Council adoption, a two and a half percent (2.5%) salary increase will be applied to the salary ranges for all represented classes. d. Base Salary: Effective the first full pay period following July 1, 2019, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. e. Base Salary: Effective the first full pay period following July 1, 2020, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. Total Compensation and Survey Database Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). 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. Section 2. Out-of-Class Compensation. All represented employees who are assigned work in a higher classification for longer than four (4) continuous hours will be compensated at a higher pay rate for all hours worked during the out-of-class assignment. This provision applies as follows: Fire Fighter, Apparatus Operator, Captain or Inspector working in a higher classification: Step to step. Representation unit classification working as a Battalion Chief, 10% above 5th-Step Captain, but not to exceed 93% of Battalion Chief control point. Representation unit classification working in any other management position, within the range of the management position. 11 In accordance with Government Code 20480, an employee assigned to work i n an “out-of-class appointment” may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 3. Pay for Court Appearance. Sworn Fire personnel appearing in court for the People shall be compensated as follows: Period Rate Minimum a. Appearance on scheduled day off Time and one-half at 40-hour rate 4 hours b. Any or all court time during scheduled shift Straight time during shift at 56-hour rate None c. Appearance on scheduled Time and one-half at 2 hours work day but not during scheduled shift 40-hour rate (2 hour minimum, may not run into shift time) The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his/her services. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. Section 4. Classifications. The Haz Mat Inspector position will be paid at the same level as the Fire Inspector (603). One Fire Captain position will be assigned to a Fire Captain (F orty-hour Assignment) with the pay set at 5% above the Fire Captain. 12 ARTICLE VIII - PAY DIFFERENTIALS Unit employees are eligible for the following pay differentials. Notwithstanding any provision of this agreement, total differential pay shall not exceed seventeen and a half percent (17.5%). Section 1. Paramedic Differential. Paramedics who have completed the required training and have been accredited in accordance with the program and possess their paramedic license, will receive a 12.5% differential in addition to their base salary effective beginning with the date of assignment to rotational Paramedic duty. The Paramedic salary differential will terminate with the cessation of assignment to rotational Paramedic duty. Employees assigned to work as an Acting Captain, as described in Article VII, Section 2 above, shall not be eligible to receive the paramedic differential unless the Acting Captain is the only paramedic staffing the apparatus during their Acting Captain assignment. Section 2. Haz Mat Differential. A maximum of fifteen positions who are Haz Mat trained and certified will receive a 5% differential in addition to their base salary. This differential does not apply to minimum staffing replacements. Section 3. Fire Inspector Differential. Fire inspector personnel including Haz Mat inspectors and Haz Mat specialists who have been trained as fire investigators and who are regularly assigned to fire investigation duties by the Chief shall be compensated with premium pay in the amount of $500 per month. The Chief reserves the right to determine who is regularly assigned to such duties. Section 4. EMT Differential. The former 3% EMT differential pay was rolled into base pay constituting the City’s incentive payment for EMT skills. In the event an employee’s EMT certification expires, the employee will be taken off the line and placed in an unpaid status until the employee can submit proof of EMT recertification. Section 5. Bilingual Pay Employees who have successfully demonstrated proficiency in any of the approved languages shall receive a 5% premium in addition to their base salary. a. Approved Languages: Spanish, Chinese (Mandarin and Cantonese), Japanese, Tagalog, Korean, Vietnamese, Russian, American Sign Language, and such other languages as determined by management. 13 b. Proficiency Requirements The City shall develop and provide a method of testing for proficiency in the above listed languages. The City will pay for the first test in any approved language however subsequent testing will be at the employee’s own expense. An employee must pass the proficiency test to maintain the bilingual pay. The Fire Chief shall have the authority to require employees receiving bilingual pay to re-certify with the Human Resources Department as necessary and reasonable. c. Arbitratability The City’s substantive evaluation of an employee’s knowledge of and skills in a designated second language shall not be subject to the grievance procedure or review by an arbitrator. ARTICLE IX - HOLIDAYS Section 1. Named Holidays. The following holidays are recognized as municipal holidays for pay purposes, and regular, employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veterans’ Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24, or December 31 as provided below First Monday in September Second Monday in October 149.5 hours is the total amount of holiday hours paid annually to an employee divided by 26 payroll periods which equals 5.75. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in ad dition to the normal biweekly base pay. Shift personnel will accumulate a biweekly amount of 5.75 hours. Hours are prorated and accrued based on hours actually worked. If employees elect to be paid for these hours at any time before the scheduled payoff, they must make sure they have sufficient hours in their Holiday account and record the hours on their timecard in the total columns of the timecard only. Accrued Holiday balances will be automatically paid off in the months of June and December. 14 Section 2. Conditions. a. Personnel assigned to a 40-hour work schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. b. Personnel assigned to a 40-hour work schedule will receive floating days off with pay in each of the following months: August, September, March, April, and June. The following conditions will hold: (1) Management will designate the schedule of the paid day off under this section at least thirty days in advance. (2) If, in conformance with this section, Management is unable to schedule a day off in the month indicated for reasons of shift operations, work scheduling or any other reason, the day will be added to the employee's vacation accrual. (3) If an employee fails to take a day off as sched uled by Management under this section, the day off so scheduled will be forfeited. ARTICLE X - OVERTIME COMPENSATION Section 1. Compensation. Shift personnel assigned to overtime relief duty in addition to their regular 56-hour shift schedule shall receive overtime compensation at a rate of one and one-half times the employee's basic 56-hour rate, or out-of-class rate if such applies, for all hours of the relief duty shift. Required off -duty training will be compensated at the rate of one and one -half times the basic 40-hour rate or as otherwise agreed. Emergency callback will be compensated at a rate of one and one - half times the basic 40-hour rate to a maximum of 8 hours, and at a rate of one and one-half times the basic 56-hour rate for those hours in excess of 8 hours. Overtime duty assignments will first be made from the voluntary overtime list. If such assignments cannot be filled from the voluntary overtime list, the vacant position will be filled by moving up on-shift personnel through out-of class assignment. Any remaining vacancy will then be filled by overtime duty assignment made in reverse order of hire date seniority according to specialty and qualifications required to be assigned. The overtime duty assignment seniority list will be adjusted annually on October 31. ARTICLE XI - APPARATUS STAFFING Engine, truck and combination rescue companies shall be deployed for emergency services purposes at the level of one Fire Captain, one Fire Apparatus Operator and one Fire Fighter. Truck companies have the option of deploying at the level of two Fire 15 Apparatus Operators instead of one Fire Apparatus Operator and one Firefighter. This option shall be determined by seniority. Paramedic ambulance staffing shall be two personnel; the City will dispatch personnel on Emergency Medical Service calls such that a minimum of 1 licensed paramedic responds. The Foothill Fire Station #8, when activated by the Fire Chief, shall be staffed with a minimum of one Fire Apparatus Operator and one Fire Fighter. City may dispatch a two-person quick response vehicle with a minimum of 1 paramedic. ARTICLE XII - FIRE DEPARTMENT PROGRAMS Section 1. Programs. The Union agrees to continue its cooperation and participation in existing weather station and community blood pressure screening and measurement programs. ARTICLE XIII - WORK ASSIGNMENTS AND TRANSFERS It is the intent of the Palo Alto Fire Administration and Local 1319 that work assignments and transfers will reflect the best interests of the Fire Department an d the City. The Fire Department will maintain a constant state of readiness to defend against fire and other disasters. It is therefore imperative that all Fire Department divisions assign personnel in the best manner to respond to the needs of the City a nd the Department. It is also acknowledged that the Fire Chief is responsible to make and/or approve the work assignments or transfers of Fire Department personnel. The Fire Chief or designee will maintain a four-year station and shift assignment, seniority-based bid system covering the following classifications within Fire Operations on a rotational basis: Fire Captain, Apparatus Operator and Fire Fighter. The Fire Chief, or his designee, shall initiate personnel assignments and transfers to balance platoon or division strength, fill permanent or temporary vacancies and provide required training to individual personnel. Such assignments will be based on seniority, except where career development, training, special assignments, skills and documented performance issues are specifically identified in writing, management may make assignments based on such issues. For purposes of this article, seniority shall be computed from the date of entry into the current classification. Section 1. Shipouts. When possible, least senior Fire Fighters will be given short term or shipout relief duty. In order to maintain training continuity, shipouts of probationary personnel will not be permitted during the first three -month training cycle. Probationary fire fighters will be assigned to Stations 1, 2, 3, 4, 5, or 6 during their probationary period, filling vacancies first, when possible. Upon completion of the first three-month training cycle, the probationary fire fighter will be eligible for short term or shipout relief duty. If after completion of the first three -month training cycle, a probationary employee fails any monthly testing process, or is the subject of 16 identified training needs, the probationary employee will be removed from short term or shipout relief duty for a 60-day period. Section 2. Vacation Relief Positions. In order that platoon strengths can be balanced more quickly and to reduce the need for excess overtime, two positions will be designated for vacation relief. These positions will be the lowest two on the Department seniority list who have completed their probationary period. a. The vacation relief persons will be assigned to one station when not on relief assignment. b. Relief assignment can be made to any Station or shift where a sho rtage of personnel will cause unnecessary overtime. c. Shortages may be caused by vacation, sick leave, disability or any leave of absence that causes a shift to be short of personnel while another has a surplus. d. Shift transfers will be made so as not to cause the relief person to work more than the prescribed number of hours in the prescribed period. e. Relief assignments will be made and hours will be coordinated by the Battalion Chief's office. Section 3. Transfer Requests. Non-probationary fire personnel may submit transfer requests to their immediate supervisor to be forwarded to the appropriate chief officer. Providing that Departmental needs are satisfied, such transfers will be administered using first a mutually agreeable exchange, secondly seniority. The transfer requests shall remain on file during the year and may be granted when a vacancy occurs, providing the requesting employee possesses the experience and performance ability required to fill the vacancy. Section 4. Special Assignments. Management reserves the right to assign personnel to career development opportunities, special projects, seminars, programs and selected educational and/or training courses, based on Fire Department needs and the performance of the employee. Section 5. Continuous Hourly Service. Continuous hours of service in excess of 72 hours are subject to approval by the Fire Chief or designee. Approval may be granted when an employee has not been engaged in a greater than usual level of activity or is not fatigued. 17 ARTICLE XIV - TRAINING COORDINATION Section 1.Coordination. Three shift employees per platoon may be assigned to assist the Training Officer in the coordination, preparation and scheduling of the training program. It is agreed that volunteers will first be sought for such assignment, and further agreed that the details of this section shall be established by mutual agreement between the Fire Chief and the Union. ARTICLE XV - PARAMEDIC ASSIGNMENT Section 1. Limit of Eligibility. The City reserves the right to limit eligibility for the Paramedic Program to the Fire Fighter classification. The City may, at its discretion, add other classifications within the represented bargaining unit to meet the need of program changes. Differentials for other classifications will be as provided in Article VIII, Section 1. Section 2. Additional Candidate Training. As the Program progresses, Management will assess the need for training additional Paramedic candidates. It is Management's intention to provide for such additional training as necessary for Program continuity. Section 3. Incentives. Paramedics will receive a one-time cash payment of $500 for each biennial recertification. This provision applies only to active incumbents of authorized paramedic positions who remain in the paramedic assignment for at least one additional year after recertification. The one year requirement after recertification does not apply to those paramedics who may leave the program because of work - related injury or illness, or promotion, nor does it apply when a paramedic is asked by management to recertify in order to voluntarily extend their paramedic service to meet special departmental needs for a period of less than one year. Section 4. Proctoring. Paramedic proctoring assignments will be made by the Chief from among qualified volunteers. Payment of $600 will be made to the primary proctoring paramedic at the conclusion of each proctoring assignment. The Chief or his or her designee will maintain a list of qualified proctor s from among volunteers. Personnel will be selected by the Fire Chief or his or her designee from the list to serve as paramedic proctors. If a conflict arises between the City and the Union regarding the Proctor Program, either side may suspend the progra m at the annual renewal period and shall remain suspended until a resolution or agreement is reached. Section 5. Field Training Stipend. Employees assigned to provide field training for new paramedic accreditation will receive a $300 stipend to train a ne w paramedic to successful completion of paramedic accreditation. This assignment is at the discretion of the Chief or their designee. 18 ARTICLE XVI - PROMOTION Section 1. Promotion Step Level. All regular promotions from classifications within the representation unit to the classification of Fire Captain will be made at the fifth step on the salary range. Section 2. Promotion Process Information. For promotions to positions within the representation unit, promotion process information will be available in the Human Resources Department office at the time of posting. Information will include applications, minimum qualifications, study material reference information, if appropriate, and information on passing scores. Any changes in an established te sting process must be submitted in writing to the Union for review and input no fewer than 60 days prior to the beginning of the process. ARTICLE XVII - REDUCTION IN FORCE Section 1. Order of Reduction. If the work force is reduced (reduction in force) within a represented classification, unit employees having the shortest length of service with the Fire Department will be laid off first so long as employees retained are fully qualified, trained and capable of performing remaining work. ARTICLE XVIII - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY Section 1. In Case of Emergency Management may use selective call back with regard to residency in cases of emergency. ARTICLE XIX - HEALTH BENEFITS Section 1. Maintenance of Levels Except as otherwise set forth herein, the City will maintain the present level of benefits on all City-sponsored medical programs. Section 2. Vision Care. The City offers vision care coverage for employees and dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XX Section 3(b). 19 Section 3. PEMHCA 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: Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 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. * 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 Total Maximum City Contribution described above. 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. b. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but 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 reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 20 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. c. Alternate 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 non-City of Palo Alto sponsored or association medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical insurance coverage and receive cash payments in the amount of two hundred and 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) per month. To participate in the program the emplo yee 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 notif y the City of a change in status. d. 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 c overed only by one spouse. 21 ARTICLE XX - DENTAL BENEFITS Section 1. Level of Benefits. The City will maintain the present level of benefits on the City-sponsored dental program. Maximum benefits per calendar year shall be $2,000. Section 2. Premiums. The City shall pay all premium payments or equivalent self - insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing dental plan. Dependents will include domestic partners, as defined under Article XX, Section 3(b). Section 3. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. ARTICLE XXI - LIFE INSURANCE Section 1. Premiums. The City currently pays the following amounts of premium on behalf of Fire personnel: Per Pay Period Per Month (Approx.) Basic Life Insurance and Basic ADD $.085 $ .185 (per $1,000 of coverage) The basic life insurance provided by the City shall equal the employee’s base monthly salary multiplied by twelve. ARTICLE XXII - RETIREMENT BENEFITS Section 1. PERS Retirement Formula. Safety Pension Group A: 3%@50 Safety Retirement The City will continue the present benefits under the Publ ic Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). Safety Pension Group B: 3%@55 Safety Retirement Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as 22 defined in the Public Employees’ Pension Reform Act (often referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). Safety Pension Group C: 2.7% at Age 57 Safety Retirement 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 point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. Section 2. PERS Member Contribution. a. Employees in all represented classes in Pension Groups A and B described above will make the 9% PERS member contributions by payroll deduction. b. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. c. When employees pay their PERS Member Contribution pursuant to section 3a and 3b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). Section 3. Additional Employee PERS contributions In addition to the PERS member contribution as required under section 2. a, b and c above, all employees in pension groups a, b and c shall contribute the additional following contributions: a. In addition to the Member Contribution required per CalPERS 20516 contract amendment all employees regardless of pension formula in this unit shall pay 3% towards the Employer share of Pension. b. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the employer share of Pension for a total of 4%. 23 Section 4. Option 2 Death Benefit. The City provides the Pre-Retirement Option Settlement 2 Death Benefit. The Pre-Retirement Optional Settlement 2 Death Benefit provides the spouse of a deceased member, who was eligible to retire for service at the time of death, with an alternate option to the lump sum Basic Death Benefit whereby the surviving spouse can elect a monthly allowance equal to the amount the member would receive if he/she had retired from service on the date of death and elected Optional Settlement 2 (the highest monthly allowance a member can leave a spouse). Section 5. Military Service Credit. The City will provide the Public Employees’ Retirement System benefit known as “Section 20930.3, Military Service Credit as Public Service.” Section 6. 1959 Survivor Benefit. The City will continue to provide the basic level of 1959 PERS Survivor Benefit to eligible employees in accordance with Government Code section 21571. Section 7. Employer Contributions to 457 Plan Effective the first full pay period following July 1, 2020, the City will contribute the equivalent of 1% of the employee’s pensionable salary into the 457 plan. Eligibility: a. Employees must be enrolled in an eligible City sponsored 457 plan b. Employees who reach the maximum as defined by the IRS will not receive additional contributions c. Employee must be making PERS contributions ARTICLE XXIII - RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to IAFF employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement, the City shall provide active unit employees who were hired before January 1, 2004 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 24 following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: a) The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or aft er January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant - only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XXIV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) Section 1. DCAP. The City will provide a dependent care assistance program for employees subject to the provisions of applicable law. The program will remain in effect subject to a reasonable minimum participation level and availability of third party administrative services at a reasonable cost. ARTICLE XXV - VACATION ACCRUAL Section 1. Accrual Rate. All eligible fire suppression persons shall accrue vacation at the following rate for continuous service performed in a pay status. Non -shift representation unit employees shall accrue the 40-hour equivalent--one shift equals sixteen hours. a. For employees completing less than four years continuous service, the accrual rate shall be five duty shifts per year. b. For employees completing four but not more than nine years continuous service, the accrual rate shall be eight duty shifts per year. c. For employees completing nine but not more than 14 years continuous service, the accrual rate shall be 10 duty shifts per year. d. For employees completing 14 but less than 19 years continuous service , the accrual rate shall be 11 duty shifts per year. e. For employees completing 19 or more years continuous service, the accrual rate shall be 12 duty shifts per year. Section 2. Unused At Termination. Represented employees who fail to use all vacation as accrued may continue the accrual balance and be entitled to all accrued but unused vacation upon termination, except as limited below. 25 Section 3. Limits. Vacation accrual balances shall be limited to three times the annual accrual rate. Accrual credit beyond this limit shall not be recognized or compensated, except that for employees of record as of January 1, 1984 who have vacation excess on a one-time basis shall be set aside (banked) to be subsequently used as vacation or paid at termination. No additions may be made to the bank. The bank is established only to facilitate changeover from unlimited to three times annual accrual rate limitation on vacation accrual as herein provided. ARTICLE XXVI - USE OF VACATION Section 1. Maximum Number of Slots. The maximum number of vacation scheduling slots for representation unit suppression employees is four (4) per platoon on a year - round basis. Section 2. Approvals. Vacation scheduling must be approved by the Battalion Chief or Fire Chief. The minimum is twelve (12) hours or more for suppression employees. Advance vacation schedules for suppression shall begin either at 8:00 a.m. or 8:00 p.m. Section 3. Vacation Pay. Vacation pay shall be made available in advance of regular pay day provided that employee requests such advance in writing to the Finance Department at least two weeks prior to his/her vacation date. The employee's supervisor must verify vacation date on the request. Section 4. Illness on 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 5. When to be Taken. The time at which an employee may use accrued vacation leave and the amount to be taken at any one time shall be determined by the Chief with particular regard for the needs of the City, but insofar as possible, considering the wishes of the employee. Section 6. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 7. Waiting Period. Employees shall complete six months continuous service before using accrued vacation leave. Section 8. Double Compensation Prohibited. Employees shall not work for the City during their vacation. 26 Section 9. Cash out Option. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours to a maximum of one hundred twenty (120) hours; PROVIDED, that the employee has taken eighty (80) hours of vacation off with pay in the previous twelve (12) months. ARTICLE XXVII - SICK LEAVE Section 1. Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Section 9. Up to six (6) days (72 shift hours for suppression personnel) sick leave per year may be used for illness in the immediate family (wife, husband, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee.) Section 2. Eligibility. Regular employees shall be eligible to accrue and use sick leave. Section 3. Accrual. Sick leave shall be accrued bi-weekly, provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of six shifts per year. Section 4. Accumulation. Accumulated sick leave may be accrued without limit, except as provided in Section 8 below. Section 5. Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight (48) hours or shift equivalent 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. 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. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. When an employee finds it necessary to be absent for any reason, he/she should cause the facts to be reported to the department within 60 minutes prior to his/her regular starting time on the first working day of absence, and shall regularly report on, or account in advance for each work day thereafter unless hospitalized or otherwise indisposed. Such reports may be subject to written documentation. Sick 27 leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Section 6. Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under long -term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. Section 7. Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and Section 8. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. Section 8. Payment for Accumulated Sick Leave. Eligible employees (those hired before December 31, 1983) who leave the municipal service in good standing, or who die while employed in good standing by the City, 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 basic hourly rate of pay at termination. Full sick leave accrual will be paid in the event of termination due to disability. For new employees hired after December 31, 1983, sick leave accrual accumulation will be limited to 1,000 hours with no payoff provisions for unused balance at termination for any reason. Section 9. Personal Business Leave Chargeable to Sick Leave. It is agreed between the parties that all shift personnel represented by the Union shall have the right to charge up to forty-eight (48) hours personal business leave per year to sick leave, and that all non-shift personnel shall have the right to charge up to twenty (20) hours personal business leave per year to sick leave. Such personal business leave shall be allowed only on a staffing available basis and where the provisions of the minimum staffing agreement are not affected. "Staffing available" means at or above minimum staffing levels as defined in Article XII. Section 10. Return to Work or Continue Work With Limited Duty. In cases of non- work-related injury, illness or pregnancy an employee, upon approval of the Fire Chief and the City Safety Officer, may return to work or continue work with doctor -approved limited duty. Approval for such limited duty sh all be based upon department ability to 28 provide work consistent with medical limitations and the length of time of the limitations. Shift employees must be willing to accept any non-shift limited duty schedule work location and may be subject to the reaso nable availability of limited duty assignments. The City doctor may be consulted in determining work limitations. ARTICLE XXVIII - SUBPOENAS Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. ARTICLE XXIX - WORKERS' COMPENSATION Section 1. Status Reporting While on Disability. Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status of medical treatment therapy and physical condition. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXX - PHYSICAL FITNESS MEDICAL EXAMINATIONS Physical fitness medical examinations for all represented employees may include chest x-rays every three years unless otherwise directed by a physician, eye examination and hearing examination. ARTICLE XXXI- LEAVES OF ABSENCE WITHOUT PAY Section 1. 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 physician's verification including diagnosis and medical work restriction. Section 2. Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests 29 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 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be gran ted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. Section 9. Use of paid accruals while on leave. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued vacation 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. ARTICLE XXXII - LEAVES OF ABSENCE WITH PAY Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at 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 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift with provision for approval of one additional shift for travel outside the 30 area may be granted an employee by the Chief in the event of death in the employe e's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother-in-law, father-in-law, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, 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. Reque sts for leave in excess of two shifts shall be subject to the approval of the City Manager. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until re leased by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. ARTICLE XXXIII – VOLUNTEER LEAVE PROGRAM The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide members of Local 1319 International Association of Fire Fighters (IAFF) employees the opportunity to donate their accrued vacation time to assist fellow members of IAFF either due to: (a) an employee’s own verifiable non -industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family membe r must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical co nditions (where applicable). A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: 1. Voluntary 2. Irrevocable 3. Confidential, unless disclosure is required by law 4. In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). 5. The employee shall be required to exhaust all other types of leave to request donated leave 6. It is understood that employees seeking or receiving leave under this program 31 will apply for long-term disability benefits for which they may be eligible 7. Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, t he employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverages through the City 8. If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required 9. The maximum donated time a donee may receive is 12 months (if available). 10. Applications to donate leave or receive leave under this Program are made to the Human Resources Department 11. This is a pilot program and is subject to cancellation by either party IAFF members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notif ied in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). The City reserves the right to modify or terminate this program at any time. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non - occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XXXIV- TUITION REIMBURSEMENT Section 1. Options. Effective July 1, 2004 the tuition reimbursement program was amended to provide each employee the option of receiving the $1,000 as taxable cash or as a contribution to 32 deferred compensation. The tuition reimbursement program will be eliminated effective July 1, 2012 with no further payouts starting in FY 12-13 and on-going. ARTICLE XXXV - PER DIEM TRAVEL EXPENSES Section 1. City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. ARTICLE XXXVI - HOUSE FUND ITEMS Section 1. Station House Fund. The station house fund per year, per shift employee shall be $100.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with non-food house fund items: TV purchase and repair. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the station house fund. The Fire Fighters agree to maintain the voter registration program. ARTICLE XXXVII - PARKING Section 1. Entitlements. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994, may initially receive a parking permit for another downtown lot, subject to availability of space at the Civic Center Garage. Light duty employees assigned to the Civic Center will receive Ci vic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXXVIII- GRIEVANCES The City and the Union agree to establish a grievance procedure as follows: 1. Definition: A grievance is any complaint or dispute regarding the application of interpretation of this Memorandum of Understanding, Department rules, regulations, policies or procedures relating to wages, hours or other terms and conditions of employment. 2. Any non-probationary employee represented by the Union may file and process a grievance. Such aggrieved employees may be represented by the Union or may represent themselves in preparing and presenting their grievance at any level of review. The Union may file a grievance when a Union right not directly 33 related to an individual employee becomes subject to dispute. 3. Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to th ree months before the grievance was filed in writing. 4. Written grievances shall be submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The Union shall deliver a copy of a written grievance to the Human Resources Department Director on the same date that it is first filed with another City representative under the provisions of the below grievance procedure. 5. The time limits specified in this section may be extended by mutual agreement in writing of the aggrieved employee or Union and the reviewer concerned. Should a decision not be rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. The grievance will be considered settled if the decision of any step is not appealed within the specified time limit. 6. If a grievance is related to a promotional process to positions within the representation unit, Step I shall be directed to the Deputy Fire Chief (or Fire Marshal for FPB positions). 7. Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with the immediate supervisor by the end of the tenth business day following the discovery of the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. Step II. If the grievance is not resolved through informal discussion, it may be submitted in writing to the Battalion Chief (Deputy Fire Chief for Captain grievances) within ten business days of the informal discussion. The Battalion Chief/Assistant Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step III. If the grievance is not resolved in Step II, it may be submitted in writing to the Fire Chief within ten business days of receipt of the Battalion Chief's/ Deputy Fire Chief's written response. The Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step IV. If the grievance is not resolved in Step III, the aggrieved employee may submit the grievance to the City Manag er for final determination or to bindinggrievance arbitration. All Step IV appeals must be filed in writing at the Human Resources Department Office within ten business days of receipt of the 34 Fire Chief's response under Step III. All hearings before the City Manager shall be pursuant to the rules and regulations set forth in the City of Palo Alto Merit Rules and Regulations. Hearings before an arbitrator will be as set forth below. In the event the aggrieved employee decides to proceed to arbitratio n, he/she shall select jointly with the Director of Human Resources an arbitrator. If the parties are unable to agree on an arbitrator, they shall jointly request a panel of five qualified and experienced arbitrators from the State Conciliation Service. Upon receipt of the list of arbitrators, the names shall be alternately struck until one name remains who shall serve as arbitrator. The arbitrator shall be jointly contacted by the parties. The arbitrator shall have jurisdiction and authority only to inte rpret, apply, or determine compliance with the provisions of the Memorandum of Agreement and such Merit System rules, regulations, policies, procedures, City ordinances or regulations 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 appealed to the arbitrator. The arbitrator shall be without power to make any decision: a. Regarding matters of interest. b. Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. c. Granting any wage increases or decreases. d. Granting pay or benefits for any period of time prior to the execution date of this Memorandum of Agreement. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of the Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in 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. Copies of the arbitrator's decision shall be submitted to the City and the aggrieved employee. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. It is further agreed that the provisions of this section shall be incorporated as part of Chapter 11 of the City of Palo Alto Merit System Rules and Regulations. Existing procedures set forth in Chapter 11, to the extent they are inconsistent with the provisions contained herein, are superseded. 35 ARTICLE XXXIX- SAFETY COMMITTEE Section 1. Committee A Safety Committee comprised of four representation unit members appointed by the Union, and at least two members of Management, will continue to meet. The Committee may make safety recommendations to the Fire Chief regarding equipment, vehicles and apparatus and may review all accidents involving represented personnel. Management shall inform the Safety Committee of all accidents involving injuries to represented personnel. ARTICLE XL – MISCELLANEOUS Section 1. T-Shirts. The City will issue four T-shirts to each uniformed employee each July These T-shirts are for use on duty only and will be maintained by the employee. Section 2. Removal of Disciplinary Actions. Records of disciplinary actions shall be removed from the personnel file of a representation unit employee upon written request by the employee after a period of three years, or sooner if mutually agreed by the Fire Chief and the employee. ARTICLE XLI - FULL UNDERSTANDING Section 1. Full and Entire Understanding. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Fair Labor Standards Act. Compensatory time off with Management approval may be used as an alternative to overtime compensation only wi thin the 27- day work period within which the overtime is worked. Section 3. Severability. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation or by reason of State or U.S. Supreme Court ruling, 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 4. Good Faith. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Understanding be administered and observed in good faith. Section 5. Merit System Rules and Regulations. During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. 36 Section 6. Station Consolidation or Relocation . During the term of this agreement, at management request, the parties agree to meet and confer with regard to issues pertaining to fire station consolidation or relocation. Section 7. Meet and Confer. Nothing in this agreement shall preclude the parties from mutually agreeing to meet and confer on any subject within the scope of representation during the term of this agreement. ARTICLE XLII – 48/96 Work Schedule The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire Department policy 205.6 typical workday and 1009.8.1 Reporting for Duty- Holidays. ARTICLE XLIII – FUTURE SERVICE DELIVERY MODELS Effective upon request of the City, the parties will meet and confer in good faith regarding the service delivery model of current inspection services and transport during the term of this Agreement. ARTICLE XLIV - DURATION This Memorandum of Agreement shall become effective upon adoption by the City Council through June 30, 2021. 38 88 EXECUTED: FOR: FOR: INTERNATIONAL ASSOCIATION CITY OF PALO ALTO FIRE FIGHTERS James Keene, City Manager Rumi Portillo, Human Resources Director Sandra Blanch, Assistant Director of Human Resources Nicholas Raisch, Manager of Employee Relations and Training Geoffrey Blackshire, Deputy Fire Chief Maria Patino, Human Resources Representative Ryan Stoddard, President Local 1319 Nate Heydorff, Vice President Local 1319 Sunny Johnson-Gutter, Secretary Local 1319 39 88 APPENDIX A 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 601 Non‐exempt SH FIRE APPARATUS OP 1 33.80$ 1 34.81$ 1 35.86$ 601 2 35.58$ 2 36.64$ 2 37.75$ 601 3 37.45$ 3 38.57$ 3 39.74$ 601 4 39.42$ 4 40.60$ 4 41.83$ 601 5 41.49$ 10,068$ 120,819$ 5 42.74$ 10,372$ 124,459$ 5 44.03$ 10,685$ 128,215$ 602 Non‐exempt SH FIRE CAPTAIN 1 40.09$ 1 41.30$ 1 42.54$ 602 2 42.20$ 2 43.47$ 2 44.78$ 602 3 44.42$ 3 45.76$ 3 47.14$ 602 4 46.76$ 4 48.17$ 4 49.62$ 602 5 49.22$ 11,944$ 143,329$ 5 50.70$ 12,303$ 147,638$ 5 52.23$ 12,674$ 152,094$ 603 Non‐exempt SH FIRE INSPECTOR 1 42.10$ 1 43.37$ 1 44.68$ 603 2 44.32$ 2 45.65$ 2 47.03$ 603 3 46.65$ 3 48.05$ 3 49.50$ 603 4 49.10$ 4 50.58$ 4 52.10$ 603 5 51.68$ 12,541$ 150,492$ 5 53.24$ 12,920$ 155,035$ 5 54.84$ 13,308$ 159,694$ 604 Non‐exempt SH FIRE FIGHTER 1 31.62$ 1 32.57$ 1 33.54$ 604 2 33.28$ 2 34.28$ 2 35.30$ 604 3 35.03$ 3 36.08$ 3 37.16$ 604 4 36.87$ 4 37.98$ 4 39.12$ 604 5 38.81$ 9,418$ 113,015$ 5 39.98$ 9,702$ 116,422$ 5 41.18$ 9,993$ 119,916$ 606 Non‐exempt SH OPER PARAMEDIC‐12.5 1 38.01$ 1 39.17$ 1 40.35$ 606 2 40.01$ 2 41.23$ 2 42.47$ 606 3 42.12$ 3 43.40$ 3 44.70$ 606 4 44.34$ 4 45.68$ 4 47.05$ 606 5 46.67$ 11,325$ 135,903$ 5 48.08$ 11,667$ 140,009$ 5 49.53$ 12,019$ 144,231$ 608 Non‐exempt SH CAPTAIN PARAMEDIC‐12.5 1 45.10$ 1 46.46$ 1 47.86$ 608 2 47.47$ 2 48.91$ 2 50.38$ 608 3 49.97$ 3 51.48$ 3 53.03$ 608 4 52.60$ 4 54.19$ 4 55.82$ 608 5 55.37$ 13,436$ 161,237$ 5 57.04$ 13,842$ 166,100$ 5 58.76$ 14,259$ 171,109$ 610 Non‐exempt SH INSPCTR PARAMDC‐12.5 1 45.51$ 1 46.87$ 1 48.29$ 610 2 47.91$ 2 49.34$ 2 50.83$ 610 3 50.43$ 3 51.94$ 3 53.50$ 610 4 53.08$ 4 54.67$ 4 56.32$ 610 5 55.87$ 13,558$ 162,693$ 5 57.55$ 13,965$ 167,586$ 5 59.28$ 14,385$ 172,623$ 676 Non‐exempt SH F FIGHTR PARAMEDC‐12.5 1 35.57$ 1 36.62$ 1 37.72$ 676 2 37.44$ 2 38.55$ 2 39.71$ 676 3 39.41$ 3 40.58$ 3 41.80$ 676 4 41.48$ 4 42.72$ 4 44.00$ 676 5 43.66$ 10,595$ 127,138$ 5 44.97$ 10,913$ 130,953$ 5 46.32$ 11,240$ 134,884$ IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 677 Non‐exempt SH HAZ MAT SPEC 1 43.32$ 1 44.63$ 1 45.97$ 677 2 45.60$ 2 46.98$ 2 48.39$ 677 3 48.00$ 3 49.45$ 3 50.94$ 677 4 50.53$ 4 52.05$ 4 53.62$ 677 5 53.19$ 12,907$ 154,889$ 5 54.79$ 13,296$ 159,548$ 5 56.44$ 13,696$ 164,353$ 678 Non‐exempt SH HAZ MAT INSPECTOR 1 42.10$ 1 43.37$ 1 44.68$ 678 2 44.32$ 2 45.65$ 2 47.03$ 678 3 46.65$ 3 48.05$ 3 49.50$ 678 4 49.10$ 4 50.58$ 4 52.10$ 678 5 51.68$ 12,541$ 150,492$ 5 53.24$ 12,920$ 155,035$ 5 54.84$ 13,308$ 159,694$ 680 Non‐exempt SH FIRE FIGHTER HAZ MAT 1 33.18$ 1 34.20$ 1 35.23$ 680 2 34.93$ 2 36.00$ 2 37.08$ 680 3 36.77$ 3 37.89$ 3 39.03$ 680 4 38.71$ 4 39.88$ 4 41.08$ 680 5 40.75$ 9,889$ 118,664$ 5 41.98$ 10,187$ 122,246$ 5 43.24$ 10,493$ 125,915$ 681 Non‐exempt SH FIRE APPR OP HAZ MAT 1 35.47$ 1 36.56$ 1 37.64$ 681 2 37.34$ 2 38.48$ 2 39.62$ 681 3 39.31$ 3 40.50$ 3 41.71$ 681 4 41.38$ 4 42.63$ 4 43.91$ 681 5 43.56$ 10,571$ 126,847$ 5 44.87$ 10,888$ 130,661$ 5 46.22$ 11,216$ 134,593$ 682 Non‐exempt SH FIRE CAPTAIN HAZ MAT 1 42.10$ 1 43.38$ 1 44.68$ 682 2 44.32$ 2 45.66$ 2 47.03$ 682 3 46.65$ 3 48.06$ 3 49.50$ 682 4 49.11$ 4 50.59$ 4 52.11$ 682 5 51.69$ 12,543$ 150,521$ 5 53.25$ 12,922$ 155,064$ 5 54.85$ 13,310$ 159,723$ 683 Non‐exempt SH FIRE FIGHTER EMT 1 32.57$ 1 33.54$ 1 34.56$ 683 2 34.28$ 2 35.30$ 2 36.38$ 683 3 36.08$ 3 37.16$ 3 38.29$ 683 4 37.98$ 4 39.12$ 4 40.30$ 683 5 39.98$ 9,702$ 116,422$ 5 41.18$ 9,993$ 119,916$ 5 42.42$ 10,294$ 123,527$ 684 Non‐exempt SH FIRE FGHTR HZ MT EMT 1 34.14$ 1 35.17$ 1 36.23$ 684 2 35.94$ 2 37.02$ 2 38.14$ 684 3 37.83$ 3 38.97$ 3 40.15$ 684 4 39.82$ 4 41.02$ 4 42.26$ 684 5 41.92$ 10,173$ 122,071$ 5 43.18$ 10,478$ 125,740$ 5 44.48$ 10,794$ 129,526$ 685 Non‐exempt SH FIRE APPARATUS OP EMT 1 34.81$ 1 35.86$ 1 36.95$ 685 2 36.64$ 2 37.75$ 2 38.89$ 685 3 38.57$ 3 39.74$ 3 40.94$ 685 4 40.60$ 4 41.83$ 4 43.09$ 685 5 42.74$ 10,372$ 124,459$ 5 44.03$ 10,685$ 128,215$ 5 45.36$ 11,007$ 132,088$ 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 686 Non‐exempt SH FIRE AP OP HZ MT EMT 1 36.50$ 1 37.60$ 1 38.72$ 686 2 38.42$ 2 39.58$ 2 40.76$ 686 3 40.44$ 3 41.66$ 3 42.91$ 686 4 42.57$ 4 43.85$ 4 45.17$ 686 5 44.81$ 10,874$ 130,487$ 5 46.16$ 11,201$ 134,418$ 5 47.55$ 11,539$ 138,466$ 687 Non‐exempt SH FIRE CAPTAIN EMT 1 41.30$ 1 42.55$ 1 43.82$ 687 2 43.47$ 2 44.79$ 2 46.13$ 687 3 45.76$ 3 47.15$ 3 48.56$ 687 4 48.17$ 4 49.63$ 4 51.12$ 687 5 50.71$ 12,306$ 147,668$ 5 52.24$ 12,677$ 152,123$ 5 53.81$ 13,058$ 156,695$ 688 Non‐exempt SH FIRE CAP HAZ MAT EMT 1 43.30$ 1 44.61$ 1 45.95$ 688 2 45.58$ 2 46.96$ 2 48.37$ 688 3 47.98$ 3 49.43$ 3 50.92$ 688 4 50.51$ 4 52.03$ 4 53.60$ 688 5 53.17$ 12,903$ 154,831$ 5 54.77$ 13,291$ 159,490$ 5 56.42$ 13,691$ 164,295$ 689 Non‐exempt SH FIRE INSPECTOR EMT 1 43.39$ 1 44.68$ 1 46.03$ 689 2 45.67$ 2 47.03$ 2 48.45$ 689 3 48.07$ 3 49.51$ 3 51.00$ 689 4 50.60$ 4 52.12$ 4 53.68$ 689 5 53.26$ 12,924$ 155,093$ 5 54.86$ 13,313$ 159,752$ 5 56.51$ 13,713$ 164,557$ 691 Non‐exempt SH F FGH PRDMD‐12.5 EMT 1 36.52$ 1 37.62$ 1 38.74$ 691 2 38.44$ 2 39.60$ 2 40.78$ 691 3 40.46$ 3 41.68$ 3 42.93$ 691 4 42.59$ 4 43.87$ 4 45.19$ 691 5 44.83$ 10,879$ 130,545$ 5 46.18$ 11,206$ 134,476$ 5 47.57$ 11,544$ 138,524$ 693 Non‐exempt SH OPR PRMDC‐12.5 EMT 1 39.03$ 1 40.20$ 1 41.42$ 693 2 41.08$ 2 42.32$ 2 43.60$ 693 3 43.24$ 3 44.55$ 3 45.89$ 693 4 45.52$ 4 46.89$ 4 48.31$ 693 5 47.92$ 11,629$ 139,543$ 5 49.36$ 11,978$ 143,736$ 5 50.85$ 12,340$ 148,075$ 695 Non‐exempt SH CAPT PRMDC‐12.5 EMT 1 46.31$ 1 47.71$ 1 49.13$ 695 2 48.75$ 2 50.22$ 2 51.72$ 695 3 51.32$ 3 52.86$ 3 54.44$ 695 4 54.02$ 4 55.64$ 4 57.31$ 695 5 56.86$ 13,798$ 165,576$ 5 58.57$ 14,213$ 170,556$ 5 60.33$ 14,640$ 175,681$ 696 Non‐exempt SH HAZ MAT SPEC EMT 1 44.63$ 1 45.97$ 1 47.36$ 696 2 46.98$ 2 48.39$ 2 49.85$ 696 3 49.45$ 3 50.94$ 3 52.47$ 696 4 52.05$ 4 53.62$ 4 55.23$ 696 5 54.79$ 13,296$ 159,548$ 5 56.44$ 13,696$ 164,353$ 5 58.14$ 14,109$ 169,304$ 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 671 Non‐exempt SH FIRE FGHTR EMT HAZ MT PARA 1 38.09$ 1 39.24$ 1 40.41$ 671 2 40.09$ 2 41.30$ 2 42.54$ 671 3 42.20$ 3 43.47$ 3 44.78$ 671 4 44.42$ 4 45.76$ 4 47.14$ 671 5 46.76$ 11,347$ 136,165$ 5 48.17$ 11,689$ 140,271$ 5 49.62$ 12,041$ 144,493$ 672 Non‐exempt SH FIRE AP OP EMT HAZ MT PARA 1 40.72$ 1 41.94$ 1 43.21$ 672 2 42.86$ 2 44.15$ 2 45.48$ 672 3 45.12$ 3 46.47$ 3 47.87$ 672 4 47.49$ 4 48.92$ 4 50.39$ 672 5 49.99$ 12,131$ 145,571$ 5 51.49$ 12,495$ 149,939$ 5 53.04$ 12,871$ 154,452$ 661 Non‐exempt SH FIRE CPT EMT HAZ MT PARA 1 48.32$ 1 49.77$ 1 51.27$ 661 2 50.86$ 2 52.39$ 2 53.97$ 661 3 53.54$ 3 55.15$ 3 56.81$ 661 4 56.36$ 4 58.05$ 4 59.80$ 661 5 59.33$ 14,397$ 172,769$ 5 61.11$ 14,829$ 177,952$ 5 62.95$ 15,276$ 183,310$ 634 Non‐exempt NS FIRE APPARATUS OP 1 47.30$ 1 48.73$ 1 50.19$ 634 2 49.79$ 2 51.29$ 2 52.83$ 634 3 52.41$ 3 53.99$ 3 55.61$ 634 4 55.17$ 4 56.83$ 4 58.54$ 634 5 58.07$ 10,065$ 120,786$ 5 59.82$ 10,369$ 124,426$ 5 61.62$ 10,681$ 128,170$ 635 Non‐exempt NS FIRE CAPTAIN 1 56.14$ 1 57.83$ 1 59.56$ 635 2 59.09$ 2 60.87$ 2 62.69$ 635 3 62.20$ 3 64.07$ 3 65.99$ 635 4 65.47$ 4 67.44$ 4 69.46$ 635 5 68.92$ 11,946$ 143,354$ 5 70.99$ 12,305$ 147,659$ 5 73.12$ 12,674$ 152,090$ 636 Non‐exempt NS FIRE INSPECTOR 1 58.94$ 1 60.71$ 1 62.54$ 636 2 62.04$ 2 63.91$ 2 65.83$ 636 3 65.30$ 3 67.27$ 3 69.29$ 636 4 68.74$ 4 70.81$ 4 72.94$ 636 5 72.36$ 12,542$ 150,509$ 5 74.54$ 12,920$ 155,043$ 5 76.78$ 13,309$ 159,702$ 637 Non‐exempt NS FIRE FIGHTER 1 44.25$ 1 45.58$ 1 46.95$ 637 2 46.58$ 2 47.98$ 2 49.42$ 637 3 49.03$ 3 50.50$ 3 52.02$ 637 4 51.61$ 4 53.16$ 4 54.76$ 637 5 54.33$ 9,417$ 113,006$ 5 55.96$ 9,700$ 116,397$ 5 57.64$ 9,991$ 119,891$ 638 Non‐exempt NS OPER PARAMEDIC‐12.5 1 53.20$ 1 54.80$ 1 56.45$ 638 2 56.00$ 2 57.68$ 2 59.42$ 638 3 58.95$ 3 60.72$ 3 62.55$ 638 4 62.05$ 4 63.92$ 4 65.84$ 638 5 65.32$ 11,322$ 135,866$ 5 67.28$ 11,662$ 139,942$ 5 69.30$ 12,012$ 144,144$ 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 639 Non‐exempt NS CAPTAIN PARAMEDIC‐12.5 1 63.15$ 1 65.06$ 1 67.00$ 639 2 66.47$ 2 68.48$ 2 70.53$ 639 3 69.97$ 3 72.08$ 3 74.24$ 639 4 73.65$ 4 75.87$ 4 78.15$ 639 5 77.53$ 13,439$ 161,262$ 5 79.86$ 13,842$ 166,109$ 5 82.26$ 14,258$ 171,101$ 641 Non‐exempt NS INSPCTR PARAMDC‐12.5 1 63.69$ 1 65.60$ 1 67.57$ 641 2 67.04$ 2 69.05$ 2 71.13$ 641 3 70.57$ 3 72.68$ 3 74.87$ 641 4 74.28$ 4 76.51$ 4 78.81$ 641 5 78.19$ 13,553$ 162,635$ 5 80.54$ 13,960$ 167,523$ 5 82.96$ 14,380$ 172,557$ 642 Non‐exempt NS 40‐HR TRAINING CAPTAIN 1 58.94$ 1 60.71$ 1 62.54$ 642 2 62.04$ 2 63.91$ 2 65.83$ 642 3 65.30$ 3 67.27$ 3 69.29$ 642 4 68.74$ 4 70.81$ 4 72.94$ 642 5 72.36$ 12,542$ 150,509$ 5 74.54$ 12,920$ 155,043$ 5 76.78$ 13,309$ 159,702$ 643 Non‐exempt NS 40‐HR TRAINING CAPTAIN EMT 1 60.71$ 1 62.53$ 1 64.41$ 643 2 63.90$ 2 65.82$ 2 67.80$ 643 3 67.26$ 3 69.28$ 3 71.37$ 643 4 70.80$ 4 72.93$ 4 75.13$ 643 5 74.53$ 12,919$ 155,022$ 5 76.77$ 13,307$ 159,682$ 5 79.08$ 13,707$ 164,486$ 644 Non‐exempt NS F FIGHTR PARAMEDC‐12.5 1 49.77$ 1 51.26$ 1 52.80$ 644 2 52.39$ 2 53.96$ 2 55.58$ 644 3 55.15$ 3 56.80$ 3 58.51$ 644 4 58.05$ 4 59.79$ 4 61.59$ 644 5 61.10$ 10,591$ 127,088$ 5 62.94$ 10,910$ 130,915$ 5 64.83$ 11,237$ 134,846$ 645 Non‐exempt NS HAZ MAT SPEC 1 60.67$ 1 62.49$ 1 64.37$ 645 2 63.86$ 2 65.78$ 2 67.76$ 645 3 67.22$ 3 69.24$ 3 71.33$ 645 4 70.76$ 4 72.88$ 4 75.08$ 645 5 74.48$ 12,910$ 154,918$ 5 76.72$ 13,298$ 159,578$ 5 79.03$ 13,699$ 164,382$ 646 Non‐exempt NS HAZ MAT INSPECTOR 1 58.94$ 1 60.71$ 1 62.54$ 646 2 62.04$ 2 63.91$ 2 65.83$ 646 3 65.30$ 3 67.27$ 3 69.29$ 646 4 68.74$ 4 70.81$ 4 72.94$ 646 5 72.36$ 12,542$ 150,509$ 5 74.54$ 12,920$ 155,043$ 5 76.78$ 13,309$ 159,702$ 647 Non‐exempt NS FIRE FIGHTER HAZ MAT 1 46.46$ 1 47.85$ 1 49.30$ 647 2 48.90$ 2 50.37$ 2 51.89$ 647 3 51.47$ 3 53.02$ 3 54.62$ 647 4 54.18$ 4 55.81$ 4 57.49$ 647 5 57.03$ 9,885$ 118,622$ 5 58.75$ 10,183$ 122,200$ 5 60.52$ 10,490$ 125,882$ 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 650 Non‐exempt NS FIRE APPR OP HAZ MAT 1 49.66$ 1 51.16$ 1 52.70$ 650 2 52.27$ 2 53.85$ 2 55.47$ 650 3 55.02$ 3 56.68$ 3 58.39$ 650 4 57.92$ 4 59.66$ 4 61.46$ 650 5 60.97$ 10,568$ 126,818$ 5 62.80$ 10,885$ 130,624$ 5 64.69$ 11,213$ 134,555$ 648 Non‐exempt NS FIRE CAPTAIN HAZ MAT 1 58.94$ 1 60.71$ 1 62.54$ 648 2 62.04$ 2 63.91$ 2 65.83$ 648 3 65.30$ 3 67.27$ 3 69.29$ 648 4 68.74$ 4 70.81$ 4 72.94$ 648 5 72.36$ 12,542$ 150,509$ 5 74.54$ 12,920$ 155,043$ 5 76.78$ 13,309$ 159,702$ 649 Non‐exempt NS FIRE FIGHTER EMT 1 45.58$ 1 46.95$ 1 48.36$ 649 2 47.98$ 2 49.42$ 2 50.90$ 649 3 50.50$ 3 52.02$ 3 53.58$ 649 4 53.16$ 4 54.76$ 4 56.40$ 649 5 55.96$ 9,700$ 116,397$ 5 57.64$ 9,991$ 119,891$ 5 59.37$ 10,291$ 123,490$ 651 Non‐exempt NS FIRE FGHTR HZ MT EMT 1 47.79$ 1 49.23$ 1 50.71$ 651 2 50.30$ 2 51.82$ 2 53.38$ 651 3 52.95$ 3 54.55$ 3 56.19$ 651 4 55.74$ 4 57.42$ 4 59.15$ 651 5 58.67$ 10,169$ 122,034$ 5 60.44$ 10,476$ 125,715$ 5 62.26$ 10,792$ 129,501$ 652 Non‐exempt NS FIRE APPARATUS OP EMT 1 48.73$ 1 50.19$ 1 51.71$ 652 2 51.29$ 2 52.83$ 2 54.43$ 652 3 53.99$ 3 55.61$ 3 57.29$ 652 4 56.83$ 4 58.54$ 4 60.30$ 652 5 59.82$ 10,369$ 124,426$ 5 61.62$ 10,681$ 128,170$ 5 63.47$ 11,001$ 132,018$ 653 Non‐exempt NS FIRE AP OP HZ MT EMT 1 51.08$ 1 52.62$ 1 54.21$ 653 2 53.77$ 2 55.39$ 2 57.06$ 653 3 56.60$ 3 58.31$ 3 60.06$ 653 4 59.58$ 4 61.38$ 4 63.22$ 653 5 62.72$ 10,871$ 130,458$ 5 64.61$ 11,199$ 134,389$ 5 66.55$ 11,535$ 138,424$ 655 Non‐exempt NS FIRE CAPTAIN EMT 1 57.84$ 1 59.57$ 1 61.35$ 655 2 60.88$ 2 62.70$ 2 64.58$ 655 3 64.08$ 3 66.00$ 3 67.98$ 655 4 67.45$ 4 69.47$ 4 71.56$ 655 5 71.00$ 12,307$ 147,680$ 5 73.13$ 12,676$ 152,110$ 5 75.33$ 13,057$ 156,686$ 654 Non‐exempt NS FIRE CAP HAZ MAT EMT 1 60.60$ 1 62.42$ 1 64.30$ 654 2 63.79$ 2 65.71$ 2 67.68$ 654 3 67.15$ 3 69.17$ 3 71.24$ 654 4 70.68$ 4 72.81$ 4 74.99$ 654 5 74.40$ 12,896$ 154,752$ 5 76.64$ 13,284$ 159,411$ 5 78.94$ 13,683$ 164,195$ 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 656 Non‐exempt NS FIRE INSPECTOR EMT 1 60.71$ 1 62.53$ 1 64.41$ 656 2 63.90$ 2 65.82$ 2 67.80$ 656 3 67.26$ 3 69.28$ 3 71.37$ 656 4 70.80$ 4 72.93$ 4 75.13$ 656 5 74.53$ 12,919$ 155,022$ 5 76.77$ 13,307$ 159,682$ 5 79.08$ 13,707$ 164,486$ 657 Non‐exempt NS F FGH PRDMD‐12.5 EMT 1 51.11$ 1 52.65$ 1 54.24$ 657 2 53.80$ 2 55.42$ 2 57.09$ 657 3 56.63$ 3 58.34$ 3 60.09$ 657 4 59.61$ 4 61.41$ 4 63.25$ 657 5 62.75$ 10,877$ 130,520$ 5 64.64$ 11,204$ 134,451$ 5 66.58$ 11,541$ 138,486$ 658 Non‐exempt NS OPR PRMDC‐12.5 EMT 1 54.63$ 1 56.28$ 1 57.97$ 658 2 57.50$ 2 59.24$ 2 61.02$ 658 3 60.53$ 3 62.36$ 3 64.23$ 658 4 63.72$ 4 65.64$ 4 67.61$ 658 5 67.07$ 11,625$ 139,506$ 5 69.09$ 11,976$ 143,707$ 5 71.17$ 12,336$ 148,034$ 697 Non‐exempt NS CAPT PRMDC‐12.5 EMT 1 64.83$ 1 66.78$ 1 68.78$ 697 2 68.24$ 2 70.29$ 2 72.40$ 697 3 71.83$ 3 73.99$ 3 76.21$ 697 4 75.61$ 4 77.88$ 4 80.22$ 697 5 79.59$ 13,796$ 165,547$ 5 81.98$ 14,210$ 170,518$ 5 84.44$ 14,636$ 175,635$ 660 Non‐exempt NS HAZ MAT INSPECTOR EMT 1 60.71$ 1 62.53$ 1 64.41$ 660 2 63.90$ 2 65.82$ 2 67.80$ 660 3 67.26$ 3 69.28$ 3 71.37$ 660 4 70.80$ 4 72.93$ 4 75.13$ 660 5 74.53$ 12,919$ 155,022$ 5 76.77$ 13,307$ 159,682$ 5 79.08$ 13,707$ 164,486$ 659 Non‐exempt NS HAZ MAT SPEC EMT 1 62.48$ 1 64.35$ 1 66.29$ 659 2 65.77$ 2 67.74$ 2 69.78$ 659 3 69.23$ 3 71.31$ 3 73.45$ 659 4 72.87$ 4 75.06$ 4 77.32$ 659 5 76.70$ 13,295$ 159,536$ 5 79.01$ 13,695$ 164,341$ 5 81.39$ 14,108$ 169,291$ 673 Non‐exempt NS FIRE FGHTR EMT HAZ MT PARA 1 53.30$ 1 54.90$ 1 56.55$ 673 2 56.10$ 2 57.79$ 2 59.53$ 673 3 59.05$ 3 60.83$ 3 62.66$ 673 4 62.16$ 4 64.03$ 4 65.96$ 673 5 65.43$ 11,341$ 136,094$ 5 67.40$ 11,683$ 140,192$ 5 69.43$ 12,035$ 144,414$ 674 Non‐exempt NS FIRE AP OP EMT HAZ MT PARA 1 56.99$ 1 58.71$ 1 60.47$ 674 2 59.99$ 2 61.80$ 2 63.65$ 674 3 63.15$ 3 65.05$ 3 67.00$ 674 4 66.47$ 4 68.47$ 4 70.53$ 674 5 69.97$ 12,128$ 145,538$ 5 72.07$ 12,492$ 149,906$ 5 74.24$ 12,868$ 154,419$ 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 662 Non‐exempt NS FIRE CPT EMT HAZ MT PARA 1 67.63$ 1 69.66$ 1 71.76$ 662 2 71.19$ 2 73.33$ 2 75.54$ 662 3 74.94$ 3 77.19$ 3 79.52$ 662 4 78.88$ 4 81.25$ 4 83.70$ 662 5 83.03$ 14,392$ 172,702$ 5 85.53$ 14,825$ 177,902$ 5 88.10$ 15,271$ 183,248$ 48 88 APPENDIX B Letter of Intent The City and IAFF during the term of this agreement will convene a committee to discuss a strike team relief process. The parties mutually agree there is value in giving employees returning from lengthy strike team deployments access to additional leave banks which they currently are unable to utilize. This committee will develop consistent practices for the department to address what steps should be taken and what leave banks employees use based on their return time and date. A new practice shall only be implemented if mutual agreement is reached. 1 MEMORANDUM OF AGREEMENT Between CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319 July October 1, 20184 – June 30, 20218 2 PREAMBLE __________________________________________________________ 7 ARTICLE I - RECOGNITION _____________________________________________ 7 Section 1. Recognition. ______________________________________________________ 7 ARTICLE II - NO DISCRIMINATION _______________________________________ 7 Section 1. No Discrimination. __________________________________________________ 7 Section 2. Free Choice. ______________________________________________________ 7 Section 3. Human Relations Committee. _________________________________________ 7 ARTICLE III - PAYROLL DEDUCTIONS ____________________________________ 7 Section 1. Payroll Deductions and Written Authorization. ____________________________ 8 Section 2. Certification of Union Membership _____________________________________ 8 Section 3. Indemnification ____________________________________________________ 8 ARTICLE IV - UNION ACTIVITIES ________________________________________ 9 Section 1. On-Duty Time. _____________________________________________________ 9 Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. ______________________________ 9 Section 3. Use of Meeting Places. _____________________________________________ 10 ARTICLE V - NO STRIKES _____________________________________________ 10 Section 1. No Strikes. _______________________________________________________ 10 ARTICLE VI - PROBATIONARY PERIOD _________________________________ 10 Section 2. Part of Testing Process. ____________________________________________ 10 Section 3. Suspension or Termination. _________________________________________ 10 ARTICLE VII - SALARY PROVISIONS ____________________________________ 11 Section 1. Base Wage Rates. ________________________________________________ 11 Section 2. Out-of-Class Compensation. _________________________________________ 12 Section 3. Pay for Court Appearance. __________________________________________ 12 Section 4. Classifications ____________________________________________________ 13 ARTICLE VIII - PAY DIFFERENTIALS ____________________________________ 13 Section 1. Paramedic Differential. _____________________________________________ 13 Section 2. Haz Mat Differential. _______________________________________________ 13 Section 3. Fire Inspector Differential. __________________________________________ 13 Section 4. EMT Differential. __________________________________________________ 14 Section 5. Bilingual Pay _____________________________________________________ 14 ARTICLE IX - HOLIDAYS ______________________________________________ 14 Section 1. Named Holidays. __________________________________________________ 14 Section 2. Conditions. ______________________________________________________ 15 ARTICLE X - OVERTIME COMPENSATION _______________________________ 15 Section 1. Compensation. ___________________________________________________ 15 3 ARTICLE XI - APPARATUS STAFFING ___________________________________ 16 ARTICLE XII - FIRE DEPARTMENT PROGRAMS ___________________________ 16 Section 1. Programs. _______________________________________________________ 16 ARTICLE XIII - WORK ASSIGNMENTS AND TRANSFERS ___________________ 16 Section 1. Shipouts. _______________________________________________________ 17 Section 2. Vacation Relief Positions. ___________________________________________ 17 Section 3. Transfer Requests. ________________________________________________ 17 Section 4. Special Assignments. ______________________________________________ 18 Section 5. Continuous Hourly Service. __________________________________________ 18 ARTICLE XIV - TRAINING COORDINATION _______________________________ 18 Section 1.Coordination ______________________________________________________ 18 ARTICLE XV - PARAMEDIC ASSIGNMENT _______________________________ 18 Section 1. Limit of Eligibility. __________________________________________________ 18 Section 2. Additional Candidate Training. _______________________________________ 18 Section 3. Incentives. _______________________________________________________ 18 Section 4. Proctoring. _______________________________________________________ 18 Section 5. Field Training Stipend. _____________________________________________ 19 ARTICLE XVI - PROMOTION ___________________________________________ 19 Section 1. Promotion Step Level. ______________________________________________ 19 Section 2. Promotion Process Information. ______________________________________ 19 ARTICLE XVII - REDUCTION IN FORCE __________________________________ 20 Section 1. Order of Reduction. ________________________________________________ 20 ARTICLE XVIII - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY _____ 20 Section 1. In Case of Emergency ______________________________________________ 20 ARTICLE XIX - HEALTH BENEFITS ______________________________________ 20 Section 1. Maintenance of Levels _____________________________________________ 20 Section 2. Vision Care. ______________________________________________________ 20 Section 3. PEMHCA Health Plan. _____________________________________________ 20 c. Alternate Medical Benefit Program. __________________________________ 22 ARTICLE XX - DENTAL BENEFITS ______________________________________ 24 Section 1. Level of Benefits. __________________________________________________ 24 Section 2. Premiums. _______________________________________________________ 24 ARTICLE XXI - LIFE INSURANCE _______________________________________ 24 Section 1. Premiums. _______________________________________________________ 24 ARTICLE XXII - RETIREMENT BENEFITS _________________________________ 24 Section 1. PERS Retirement Formula. __________________________________________ 24 4 Section 2. PERS Member Contribution. ________________________________________ 25 Section 3. Additional Employee PERS contributions _______________________________ 25 Section 4. Option 2 Death Benefit. _____________________________________________ 26 Section 5. Military Service Credit. _____________________________________________ 26 Section 6. 1959 Survivor Benefit. _____________________________________________ 26 Section 7. Employer Contributions to 457 Plan ___________________________________ 26 ARTICLE XXIII - RETIREMENT MEDICAL PLAN ___________________________ 27 Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: ____ 27 Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: ____________________________________________________ 27 ARTICLE XXIV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) ________ 27 Section 1. DCAP. __________________________________________________________ 27 ARTICLE XXV - VACATION ACCRUAL ___________________________________ 27 Section 1. Accrual Rate. _____________________________________________________ 27 Section 2. Unused At Termination. _____________________________________________ 28 Section 3. Limits. __________________________________________________________ 28 ARTICLE XXVI - USE OF VACATION ____________________________________ 28 Section 1. Maximum Number of Slots __________________________________________ 28 Section 2. Approvals. _______________________________________________________ 28 Section 3. Vacation Pay. ____________________________________________________ 28 Section 4. Illness on Vacation. ________________________________________________ 29 Section 5. When to be Taken. ________________________________________________ 29 Section 6. Limitation on Use. _________________________________________________ 29 Section 7. Waiting Period. ___________________________________________________ 29 Section 8. Double Compensation Prohibited. _____________________________________ 29 Section 9. Cash out Option. __________________________________________________ 29 ARTICLE XXVII - SICK LEAVE __________________________________________ 29 Section 1. Statement of Policy. _______________________________________________ 29 Section 2. Eligibility ________________________________________________________ 29 Section 3. Accrual. _________________________________________________________ 29 Section 4. Accumulation. ____________________________________________________ 29 Section 5. Use. ____________________________________________________________ 29 Section 6. Depletion of Sick Leave Benefits. _____________________________________ 30 Section 7. Forfeiture Upon Termination. ________________________________________ 30 Section 8. Payment for Accumulated Sick Leave. _________________________________ 30 Section 9. Personal Business Leave Chargeable to Sick Leave. ______________________ 31 5 Section 10. Return to Work or Continue Work With Limited Duty. _____________________ 31 ARTICLE XXVIII - SUBPOENAS _________________________________________ 31 ARTICLE XXIX - WORKERS' COMPENSATION ____________________________ 31 Section 1. Status Reporting While on Disability. __________________________________ 31 ARTICLE XXX - PHYSICAL FITNESS MEDICAL EXAMINATIONS ______________ 31 ARTICLE XXXI- LEAVES OF ABSENCE WITHOUT PAY _____________________ 32 Section 1. Disability. ________________________________________________________ 32 Section 2. Other Leaves. ____________________________________________________ 32 Section 3. Accrued Vacation Credits. ___________________________________________ 32 Section 4. Approval of Department Head ________________________________________ 32 Section 5. Approval by City Manager. __________________________________________ 32 Section 6. Absence Without Leave. ____________________________________________ 32 Section 7. Leave of Absence; Death Outside the Immediate Family. __________________ 32 Section 8. Military Leave of Absence ___________________________________________ 32 Section 9. Use of paid accruals while on leave. ___________________________________ 32 ARTICLE XXXII - LEAVES OF ABSENCE WITH PAY ________________________ 33 Section 1. City Manager Granted Leaves. _______________________________________ 33 Section 2. Council Granted Leave. _____________________________________________ 33 Section 3. Employee's Time Off to Vote. ________________________________________ 33 Section 4. Leaves of Absence; Death in Immediate Family. _________________________ 33 Section 5. Jury Duty; Leave of Absence. ________________________________________ 33 ARTICLE XXXIII – VOLUNTEER LEAVE PROGRAM ________________________ 33 ARTICLE XXXIV- TUITION REIMBURSEMENT _____________________________ 35 Section 1. Options. _________________________________________________________ 35 ARTICLE XXXV - PER DIEM TRAVEL EXPENSES __________________________ 35 Section 1. City Business. ____________________________________________________ 35 ARTICLE XXXVI - HOUSE FUND ITEMS __________________________________ 35 Section 1. Station House Fund. _______________________________________________ 35 Section 2. Non-Food House Items _____________________________________________ 35 ARTICLE XXXVII - PARKING ___________________________________________ 35 Section 1. Entitlements. _____________________________________________________ 35 ARTICLE XXXVIII- GRIEVANCES _______________________________________ 36 Step II ___________________________________________________________________ 37 Step III __________________________________________________________________ 37 Step IV __________________________________________________________________ 37 ARTICLE XXXIX- SAFETY COMMITTEE __________________________________ 38 6 Section 1. Committee _______________________________________________________ 38 ARTICLE XL – MISCELLANEOUS _______________________________________ 38 Section 1. T-Shirts. _________________________________________________________ 38 Section 2. Removal of Disciplinary Actions. ______________________________________ 38 ARTICLE XLI - FULL UNDERSTANDING _________________________________ 38 Section 1. Full and Entire Understanding ________________________________________ 38 Section 2. Fair Labor Standards Act. ___________________________________________ 38 Section 3. Severability. ______________________________________________________ 38 Section 4. Good Faith. ______________________________________________________ 39 Section 5. Merit System Rules and Regulations. __________________________________ 39 Section 6. Station Consolidation or Relocation ___________________________________ 39 Section 7. Meet and Confer. __________________________________________________ 39 ARTICLE XLII – 48/96 Work Schedule ___________________________________ 39 ARTICLE XLIII – FUTURE SERVICE DELIVERY MODELS ____________________ 40 ARTICLE XLIV - DURATION ____________________________________________ 40 APPENDIX A ________________________________________________________ 42 APPENDIX B ________________________________________________________ 51 7 MEMORANDUM OF AGREEMENT CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319 July October 1, 201814 - June 30, 202118 PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and Local 1319, International Association of Fire Fighters, hereinafter referred as the "Union", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. Recognition. The City recognizes the Union as the exclusive representative of an employee group consisting solely of the classifications of Fire Apparatus Operator, Fire Fighter, Fire Captain, Fire Captain (forty-hour assignment), Fire Inspector, Hazardous Materials Specialist, and Hazmat Inspector, who are regularly employed by the City and others as amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. ARTICLE II - NO DISCRIMINATION Section 1. No Discrimination. The Union and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Union, or participation in the lawful activities of the Union. Section 2. Free Choice. The Union and the City hereby 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. Section 3. Human Relations Committee. A Human Relations Committee will include up to five members appointed by the Union executive board and at least two members of management with representation from the Fire and Human Resources Departments. The committee may make recommendations to management regarding recruitment outreach, equal employment opportunity and career development programs. ARTICLE III - PAYROLL DEDUCTIONS – AGENCY SHOP 8 Section 1. Payroll Deductions and Written Authorization. The City shall deduct Union membership dues assessments and insurances authorized by the Union. and pay other mutually agreed uponThis will be accomplished by payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an Union authorization card acceptable to the City and the Union. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain authorizations for dues deduction, 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. The City shall remit the deducted dues to the Union as soon as possible after deduction. All Union members on payroll deduction for payment of Union dues as of 5:00 p.m. on the tenth day following signing of this Memorandum of Agreement must remain on payroll deduction for the life of the Memorandum of Agreement, or so long as they remain members of the representation unit. Union members who establish dues payroll deduction during the term of the Memorandum of Agreement must remain on payroll deduction for the life of the Memorandum of Understanding, or so long as they remain members of the representation unit. Union members on dues payroll deduction may declare their intention to terminate such payroll deduction following expiration of this Memorandum of Agreement during the thirty-day period between sixty and ninety days prior to expiration of the Memorandum of Agreement. Section 2. Agency ShopCertification of Union Membership. The Union agrees to provide the City an initial certified list of members and 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. From that point forward the Union will update the list whenever there are changes. Pursuant to legislation enacted by SB 739 and amendment to the Meyers-Milias-Brown Act, the City and the Union agree to abide by the following provisions as they relate to an agency shop and an agency shop election. Section 3. Indemnification. Agency Shop as defined under Meyers-Milias Brown means “an arrangement that requires an employee, as a condition of continued employment, either to join the recognized employee organization, or to pay the organization a service fee in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization.” The City and the Union agree that an agency shop arrangement between the City and the Union shall be placed in effect upon ratification of this agreement. Any employee who is a member of a bona fide religion, body, or sect that has historically held conscientious objections to joining or financially supporting public employee organizations shall not be required to join or financially support any public employee organization as a condition of employment. The employee may be required, 9 in lieu of periodic dues, initiation fees, or agency fees, to pay sums equal to the dues, initiation fees, or agency fees to a nonreligious, nonlabor charitable fund exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, chosen by the employee from a list of at least three organizations, or if the memorandum of understanding between the City and the Union fails to designate the funds, then to any such fund chosen by the employee. Proof of the payments shall be made on a monthly basis to the City as a condition of continued exemption from the requirement of financial support to the Union. Covered employees shall execute written authorization for either Union dues deductions, the agency fee, or, if eligible, the charitable contribution. In the absence of a written authorization the City shall deduct the agency fee from the employees’ paycheck. If implemented, an agency shop provision may be rescinded by a majority vote of all the employees in the unit covered by the Memorandum of Understanding pursuant to the Meyers-Milias-Brown Act. The Union shall keep an adequate itemized record of its financial transactions and shall make available annually, to the City and to the employees who are members of the organization, within 60 days after the end of its fiscal year, a detailed written financial report thereof in the form of a balance sheet and an opening statement, certified as to accuracy by its president and treasurer or corresponding principal officer, or a certified public accountant. The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article.e City’s compliance with the agency shop obligation. The Union shall comply with all statutory and legal requirements with respect to Agency Shopthis article. ARTICLE IV - UNION ACTIVITIES Section 1. On-Duty Time. Local 1319 officers may use a reasonable amount of on- duty time to attend to Union business specifically related to representation of employees so long as: a. Staffing is available b. Operations are not interrupted c. Advance approval is obtained from the Battalion Chief or Operations Chief Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. The Union shall have access to interoffice mail and 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, result of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Operations Chief or Fire Chief. Action on approval will be taken within 10 24 hours of submission. The Union may send e-mail messages only for the purposes set forth above. The I.T. Division will maintain the IAFF list. The Union access to e-mail is based on the following conditions: a. E-Mails to the IAFF list will be copied to the Fire Chief or Operations Chief at distribution. b. E-Mails to the IAFF list will only be sent by the Executive Board Members. Section 3. Use of Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during non-working hours or as subject to Battalion Chief approval. Such meeting places will be made available in conformity with City regulations and subject to the limitations of prior commitment. ARTICLE V - NO STRIKES Section 1. No Strikes. The Union, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Union, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE VI - PROBATIONARY PERIOD Section 1. Tentative and Subject to Probationary Period. All original appointments to regular or part-time municipal service positions shall be tentative and subject to a probationary period, . This probationary period shall include the fire training academy and an additional fourteen (14) months after completion of the academy, excluding time off for extended leaves of absence. fixed by the appointing authority at the time of appointment, or sixteen (16) months. Section 2. Part of Testing Process. The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing all aspects of the employee's qualifications, for ensuring the effective adjustment of a new employee to the position and for rejecting any probationary employee who, in the opinion of management, is not suitable to attain permanent status. Section 3. Suspension or Termination. During the probationary period a new employee may be suspended or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. Said employee shall not have the right to proceed to arbitration on the issue of arbitrability or on the 11 issue of its constitutional or discovery rights, nor those of any employee by reason of the foregoing. The Union shall not be a party to any lawsuit relating to the termination of a probationary employee. ARTICLE VII - SALARY PROVISIONS Section 1. Base Wage Rates. a. The base wage rates of bargaining unit classifications will be as set forth in Appendix A of this MOA. b. Base Salary: Effective the first full pay period following Council adoption, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. c. Market Increase: Effective the first full pay period following Council adoption, a two and a half percent (2.5%) salary increase will be applied to the salary ranges for all represented classes. d. Base Salary: Effective the first full pay period following July 1, 2019, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. e. Base Salary: Effective the first full pay period following July 1, 2020, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. a. Effective the full pay period following City Council approval, a 2.5% general salary increase and a 5% market adjustment will be applied to the salary ranges of all represented classes. Effective with the pay period including June 30, 2016 a 2.5% general salary increase and a 8% market adjustment will be applied to the salary ranges of all represented classes. Effective with the pay period including June 30, 2017 a 2.5% percent general salary increase will be applied to the salary ranges of all represented classes. Total Compensation Market Study. The City will conduct a total compensation survey by November 2017 using the criteria listed below (Total Compensation and Survey Database). Data shall include the contributions in effect up until the November 2017 period. If the City’s survey shows that the Fire Fighter benchmark based on the median is under the market median, the City shall confer a market adjustment to place the benchmark to the median of market, up to a cap of two and a half percent (2.5%), effective the last pay period in December 2017. Total Compensation and Survey Database 12 Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). 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. Section 2. Out-of-Class Compensation. All represented employees who are assigned work in a higher classification for longer than four (4) continuous hours will be compensated at a higher pay rate for all hours worked during the out-of-class assignment. This provision applies as follows: Fire Fighter, Apparatus Operator, Captain or Inspector working in a higher classification: Step to step. Representation unit classification working as a Battalion Chief, 10% above 5th-Step Captain, but not to exceed 93% of Battalion Chief control point. Representation unit classification working in any other management position, within the range of the management position. In accordance with Government Code 20480, an employee assigned to work in an “out-of-class appointment” may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 3. Pay for Court Appearance. Sworn Fire personnel appearing in court for the People shall be compensated as follows: Period Rate Minimum a. Appearance on scheduled day off Time and one-half at 40-hour rate 4 hours b. Any or all court time during scheduled shift Straight time during shift at 56-hour rate None c. Appearance on scheduled Time and one-half at 2 hours 13 work day but not during scheduled shift 40-hour rate (2 hour minimum, may not run into shift time) The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his/her services. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. Section 4. Classifications. The Haz Mat Inspector position will be paid at the same level as the Fire Inspector (603). One Fire Captain position will be assigned to a Fire Captain (Forty-hour Assignment) with the pay set at 5% above the Fire Captain. ARTICLE VIII - PAY DIFFERENTIALS Unit employees are eligible for the following pay differentials. Notwithstanding any provision of this agreement, total differential pay shall not exceed seventeen and a half percent (17.5%). Section 1. Paramedic Differential. Paramedics who have completed the required training and have been accredited in accordance with the program and possess their paramedic license, will receive a 12.5% differential in addition to their base salary effective beginning with the date of assignment to rotational Paramedic duty. The Paramedic salary differential will terminate with the cessation of assignment to rotational Paramedic duty. Employees assigned to work as an Acting Captain, as described in Article VII, Section 2 above, shall not be eligible to receive the paramedic differential unless the Acting Captain is the only paramedic staffing the apparatus during their Acting Captain assignment. On or before 09/28/2015, employees Y-rated and those who have submitted their letters to Y-rate will be Y-rated. Section 2. Haz Mat Differential. A maximum of fifteen positions who are Haz Mat trained and certified will receive a 5% differential in addition to their base salary. This differential does not apply to minimum staffing replacements. Section 3. Fire Inspector Differential. Fire inspector personnel including Haz Mat inspectors and Haz Mat specialists who have been trained as fire investigators and who are regularly assigned to fire investigation duties by the Chief shall be compensated with premium pay in the amount of $500 per month. The Chief reserves the right to determine who is regularly assigned to such duties. 14 Section 4. EMT Differential. Effective the first full pay period after adoption of the successor MOU, the City shall roll tThe former 3% EMT differential pay into was rolled into the base pay . After this one time conversion is added to base pay, this shall constitutinge the City’s incentive payment for EMT skills. This conversion shall be cost neutral during the term of this MOU. In the event an employee’s EMT certification expires, the employee will be taken off the line and placed in an unpaid status until the employee can submit proof of EMT recertification. Section 5. Bilingual Pay Employees who have successfully demonstrated proficiency in any of the approved languages shall receive a 5% premium in addition to their base salary. a. Approved Languages: Spanish, Chinese (Mandarin and Cantonese), Japanese, Tagalog, Korean, Vietnamese, Russian, American Sign Language, and such other languages as determined by management. b. Proficiency Requirements The City shall develop and provide a method of testing for proficiency in the above listed languages. The City will pay for the first test in any approved language however subsequent testing will be at the employee’s own expense. An employee must pass the proficiency test to maintain the bilingual pay. The Fire Chief shall have the authority to require employees receiving bilingual pay to re-certify with the Human Resources Department as necessary and reasonable. c. Arbitratability The City’s substantive evaluation of an employee’s knowledge of and skills in a designated second language shall not be subject to the grievance procedure or review by an arbitrator. ARTICLE IX - HOLIDAYS Section 1. Named Holidays. The following holidays are recognized as municipal holidays for pay purposes, and regular, employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veterans’ Day, November 11 Third Monday in January Thanksgiving Day 15 Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24, or December 31 as provided below First Monday in September Second Monday in October 149.5 hours is the total amount of holiday hours paid annually to an employee divided by 26 payroll periods which equals 5.75. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in addition to the normal biweekly base pay. Shift personnel will accumulate a biweekly amount of 5.75 hours. Hours are prorated and accrued based on hours actually worked. If employees elect to be paid for these hours at any time before the scheduled payoff, they must make sure they have sufficient hours in their Holiday account and record the hours on their timecard in the total columns of the timecard only. Accrued Holiday balances will be automatically paid off in the months of June and December. Section 2. Conditions. a. Personnel assigned to a 40-hour work schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. b. Personnel assigned to a 40-hour work schedule will receive floating days off with pay in each of the following months: August, September, March, April, and June. The following conditions will hold: (1) Management will designate the schedule of the paid day off under this section at least thirty days in advance. (2) If, in conformance with this section, Management is unable to schedule a day off in the month indicated for reasons of shift operations, work scheduling or any other reason, the day will be added to the employee's vacation accrual. (3) If an employee fails to take a day off as scheduled by Management under this section, the day off so scheduled will be forfeited. ARTICLE X - OVERTIME COMPENSATION Section 1. Compensation. Shift personnel assigned to overtime relief duty in addition to their regular 56-hour shift schedule shall receive overtime compensation at a rate of 16 one and one-half times the employee's basic 56-hour rate, or out-of-class rate if such applies, for all hours of the relief duty shift. Required off-duty training will be compensated at the rate of one and one-half times the basic 40-hour rate or as otherwise agreed. Emergency callback will be compensated at a rate of one and one- half times the basic 40-hour rate to a maximum of 8 hours, and at a rate of one and one-half times the basic 56-hour rate for those hours in excess of 8 hours. Overtime duty assignments will first be made from the voluntary overtime list. If such assignments cannot be filled from the voluntary overtime list, the vacant position will be filled by moving up on-shift personnel through out-of class assignment. Any remaining vacancy will then be filled by overtime duty assignment made in reverse order of hire date seniority according to specialty and qualifications required to be assigned. The overtime duty assignment seniority list will be adjusted annually on October 31. ARTICLE XI - APPARATUS STAFFING Engine, truck and combination rescue companies shall be deployed for emergency services purposes at the level of one Fire Captain, one Fire Apparatus Operator and one Fire Fighter. Truck companies have the option of deploying at the level of two Fire Apparatus Operators instead of one Fire Apparatus Operator and one Firefighter. This option shall be determined by seniority. Paramedic ambulance staffing shall be two personnel; the City will dispatch personnel on Emergency Medical Service calls such that a minimum of 1 licensed paramedic responds. The Foothill Fire Station #8, when activated by the Fire Chief, shall be staffed with a minimum of one Fire Apparatus Operator and one Fire Fighter. City may dispatch a two-person quick response vehicle with a minimum of 1 paramedic. ARTICLE XII - FIRE DEPARTMENT PROGRAMS Section 1. Programs. The Union agrees to continue its cooperation and participation in existing weather station and community blood pressure screening and measurement programs. ARTICLE XIII - WORK ASSIGNMENTS AND TRANSFERS It is the intent of the Palo Alto Fire Administration and Local 1319 that work assignments and transfers will reflect the best interests of the Fire Department and the City. The Fire Department will maintain a constant state of readiness to defend against fire and other disasters. It is therefore imperative that all Fire Department divisions assign personnel in the best manner to respond to the needs of the City and the Department. It is also acknowledged that the Fire Chief is responsible to make and/or approve the work assignments or transfers of Fire Department personnel. The Fire Chief or designee will maintain a four-year station and shift assignment, 17 seniority-based bid system covering the following classifications within Fire Operations on a rotational basis: Fire Captain, Apparatus Operator and Fire Fighter. The Fire Chief, or his designee, shall initiate personnel assignments and transfers to balance platoon or division strength, fill permanent or temporary vacancies and provide required training to individual personnel. Such assignments will be based on seniority, except where career development, training, special assignments, skills and documented performance issues are specifically identified in writing, management may make assignments based on such issues. For purposes of this article, seniority shall be computed from the date of entry into the current classification. Section 1. Shipouts. When possible, least senior Fire Fighters will be given short term or shipout relief duty. In order to maintain training continuity, shipouts of probationary personnel will not be permitted during the first three-month training cycle. Probationary fire fighters will be assigned to Stations 1, 2, 3, 4, 5, or 6 during their probationary period, filling vacancies first, when possible. Upon completion of the first three-month training cycle, the probationary fire fighter will be eligible for short term or shipout relief duty. If after completion of the first three-month training cycle, a probationary employee fails any monthly testing process, or is the subject of identified training needs, the probationary employee will be removed from short term or shipout relief duty for a 60-day period. Section 2. Vacation Relief Positions. In order that platoon strengths can be balanced more quickly and to reduce the need for excess overtime, two positions will be designated for vacation relief. These positions will be the lowest two on the Department seniority list who have completed their probationary period. a. The vacation relief persons will be assigned to one station when not on relief assignment. b. Relief assignment can be made to any Station or shift where a shortage of personnel will cause unnecessary overtime. c. Shortages may be caused by vacation, sick leave, disability or any leave of absence that causes a shift to be short of personnel while another has a surplus. d. Shift transfers will be made so as not to cause the relief person to work more than the prescribed number of hours in the prescribed period. e. Relief assignments will be made and hours will be coordinated by the Battalion Chief's office. Section 3. Transfer Requests. Non-probationary fire personnel may submit transfer requests to their immediate supervisor to be forwarded to the appropriate chief officer. Providing that Departmental needs are satisfied, such transfers will be administered using first a mutually agreeable exchange, secondly seniority. 18 The transfer requests shall remain on file during the year and may be granted when a vacancy occurs, providing the requesting employee possesses the experience and performance ability required to fill the vacancy. Section 4. Special Assignments. Management reserves the right to assign personnel to career development opportunities, special projects, seminars, programs and selected educational and/or training courses, based on Fire Department needs and the performance of the employee. Section 5. Continuous Hourly Service. Continuous hours of service in excess of 72 hours are subject to approval by the Fire Chief or designee. Approval may be granted when an employee has not been engaged in a greater than usual level of activity or is not fatigued. ARTICLE XIV - TRAINING COORDINATION Section 1.Coordination. Three shift employees per platoon may be assigned to assist the Training Officer in the coordination, preparation and scheduling of the training program. It is agreed that volunteers will first be sought for such assignment, and further agreed that the details of this section shall be established by mutual agreement between the Fire Chief and the Union. ARTICLE XV - PARAMEDIC ASSIGNMENT Section 1. Limit of Eligibility. The City reserves the right to limit eligibility for the Paramedic Program to the Fire Fighter classification. The City may, at its discretion, add other classifications within the represented bargaining unit to meet the need of program changes. Differentials for other classifications will be as provided in Article VIII, Section 1. Section 2. Additional Candidate Training. As the Program progresses, Management will assess the need for training additional Paramedic candidates. It is Management's intention to provide for such additional training as necessary for Program continuity. Section 3. Incentives. Paramedics will receive a one-time cash payment of $500 for each biennial recertification. This provision applies only to active incumbents of authorized paramedic positions who remain in the paramedic assignment for at least one additional year after recertification. The one year requirement after recertification does not apply to those paramedics who may leave the program because of work- related injury or illness, or promotion, nor does it apply when a paramedic is asked by management to recertify in order to voluntarily extend their paramedic service to meet special departmental needs for a period of less than one year. Section 4. Proctoring. Paramedic proctoring assignments will be made by the Chief from among qualified volunteers. Payment of $600 will be made to the primary proctoring paramedic at the conclusion of each proctoring assignment. 19 The Chief or his or her designee will maintain a list of qualified proctors from among volunteers. Personnel will be selected by the Fire Chief or his or her designee from the list to serve as paramedic proctors. If a conflict arises between the City and the Union regarding the Proctor Program, either side may suspend the program at the annual renewal period and shall remain suspended until a resolution or agreement is reached. Section 5. Field Training Stipend. Employees assigned to provide field training for new paramedic accreditation will receive a $300 stipend to train a new paramedic to successful completion of paramedic accreditation. This assignment is at the discretion of the Chief or their designee. ARTICLE XVI - FIRE FIGHTER APPRENTICE PROGRAM Section 1. Implementation. The Union agrees to assist the City in the implementation of an apprentice, training and equal employment opportunity program. Trainees under such programs shall be provided with all benefits, including retirement benefits, of other fire fighters except salary. Section 2. Beginning Fire Fighting Suppression Work. Employees hired under the apprentice training program may begin fire fighting suppression work after they have reached the Trainee II level. . Section 3. Testing Process. Local 1319 shall be represented and entitled to participate in all stages of the testing process, and representatives from Local 1319 shall make recommendations to the department concerning the qualifications of any apprentice. ARTICLE XVII - PROMOTION Section 1. Promotion Step Level. All regular promotions from classifications within the representation unit to the classification of Fire Captain will be made at the fifth step on the salary range. Section 2. Promotion Process Information. For promotions to positions within the representation unit, promotion process information will be available in the Human Resources Department office at the time of posting. Information will include applications, minimum qualifications, study material reference information, if appropriate, and information on passing scores. Any changes in an established testing process must be submitted in writing to the Union for review and input no fewer than 60 days prior to the beginning of the process. 20 ARTICLE XVIII - REDUCTION IN FORCE Section 1. Order of Reduction. If the work force is reduced (reduction in force) within a represented classification, unit employees having the shortest length of service with the Fire Department will be laid off first so long as employees retained are fully qualified, trained and capable of performing remaining work. ARTICLE XVIIIX - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY Section 1. In Case of Emergency Management may use selective call back with regard to residency in cases of emergency. ARTICLE XIX - HEALTH BENEFITS Section 1. Maintenance of Levels Except as otherwise set forth herein, the City will maintain the present level of benefits on all City-sponsored medical programs. Section 2. Vision Care. The City offers vision care coverage for employees and dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XX Section 3(b). Section 3. PEMHCA 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: Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 Medical PEMHCA Up to a Total Up to a Total Up to a Total Premium contribution* Maximum Maximum Maximum 21 Category City Contribution City Contribution City Effective January Effective January Contribution 1, 2016 1, 2017 Effective January 1, 2018 Employee $125.00 90% of monthly $773.00 $804.00 only premium for plan selected by employee Not to exceed 90% of the second most expensive plan premium Employee $125.00 90% of monthly $1,544.00 $1,606.00 plus one premium for plan selected by employee Not to exceed 90% of the second most expensive plan premium Employee $125.00 90% of monthly $2,008.00 $2,088.00 Family premium for plan selected by employee Not to exceed 90% of the second most expensive plan premium Effective with the first pay period including January 1, 2016, tThe City’s total maximum 22 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 as of 2016. 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. 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. b. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but 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 reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. c. Alternate Medical Benefit Program. For calendar year 2016, if a regular employee and/or the employee’s dependent(s) are enrolled in medical insurance through another employer- sponsored or association medical plan, the employee may opt for alternative medical insurance coverage through the other employer-sponsored or association plan and waives his/her right to the City of Palo Alto’s medical 23 insurance coverage for same individuals. Employees electing alternative coverage and no City coverage will receive cash payments of approximately half of the “averaged monthly City contribution toward premiums” for their medical insurance coverage. “Averaged monthly premiums” are the average of the Kaiser HMO, Blue Shield HMO and PERS Choice PPO premiums for the employee’s City medical coverage available through the Public Employee Retirement System (PERS). The monthly rates for 2016 are as follows: One party: $340.5 Two party: $681.0 Family: $885.3 Effective with the first pay period including January 1, 2017, iIf a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any non-City of Palo Alto sponsored or association medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical insurance coverage and receive cash payments in the amount of two hundred and 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) 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 24 status. d. 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 only by one spouse. ARTICLE XXI - DENTAL BENEFITS Section 1. Level of Benefits. The City will maintain the present level of benefits on the City-sponsored dental program. Maximum benefits per calendar year shall be $2,000. Section 2. Premiums. The City shall pay all premium payments or equivalent self- insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing dental plan. Dependents will include domestic partners, as defined under Article XX, Section 3(b). Section 3. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. ARTICLE XXII - LIFE INSURANCE Section 1. Premiums. The City currently pays the following amounts of premium on behalf of Fire personnel: Per Pay Period Per Month (Approx.) Basic Life Insurance and Basic ADD $.085 $ .185 (per $1,000 of coverage) The basic life insurance provided by the City shall equal the employee’s base monthly salary multiplied by twelve. ARTICLE XXIII - RETIREMENT BENEFITS Section 1. PERS Retirement Formula. Safety Pension Group A: 3%@50 Safety Retirement 25 The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). Safety Pension Group B: 3%@55 Safety Retirement Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (often referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). Safety Pension Group C: 2.7% at Age 57 Safety Retirement 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 point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. Section 2. PERS Member Contribution. a. Employees in all represented classes in Pension Groups A and B described above will make the 9% PERS member contributions by payroll deduction b. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. c. When employees pay their PERS Member Contribution pursuant to section 3a and 3b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). Section 3. Additional Employee PERS contributions In addition to the PERS member contribution as required under section 2. a, b and 26 c above, all employees in pension groups a, b and c shall contribute the additional following contributions: a. Effective as soon as administratively possible all employees regardless of pension formula in this unit shall, iIn addition to the Member Contribution required per CalPERS 20516 contract amendment all employees regardless of pension formula in this unit shall pay an additional 13% towards the Employer share of Pension. b. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the employer share of Pension for a total of 4%. Effective as soon as administratively possible but no sooner than the pay period that includes June 30, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 3%. Such contributions under CalPERS 20516 will be provided on a pre-tax basis to the extent allowable by law. Section 4. Option 2 Death Benefit. The City provides the Pre-Retirement Option Settlement 2 Death Benefit. The Pre-Retirement Optional Settlement 2 Death Benefit provides the spouse of a deceased member, who was eligible to retire for service at the time of death, with an alternate option to the lump sum Basic Death Benefit whereby the surviving spouse can elect a monthly allowance equal to the amount the member would receive if he/she had retired from service on the date of death and elected Optional Settlement 2 (the highest monthly allowance a member can leave a spouse). Section 5. Military Service Credit. The City will provide the Public Employees’ Retirement System benefit known as “Section 20930.3, Military Service Credit as Public Service.” Section 6. 1959 Survivor Benefit. The City will continue to provide the basic level of 1959 PERS Survivor Benefit to eligible employees in accordance with Government Code section 21571. Section 7. Employer Contributions to 457 Plan Effective the first full pay period following July 1, 2020, the City will contribute the equivalent of 1% of the employee’s pensionable salary into the 457 plan. Eligibility: a. Employees must be enrolled in an eligible City sponsored 457 plan b. Employees who reach the maximum as defined by the IRS will not receive additional contributions c. Employee must be making PERS contributions 27 ARTICLE XXIVII - RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to IAFF employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement, the City shall provide active unit employees who were hired before January 1, 2004 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. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: a) The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant- only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XXIV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) Section 1. DCAP. The City will provide a dependent care assistance program for employees subject to the provisions of applicable law. The program will remain in effect subject to a reasonable minimum participation level and availability of third party administrative services at a reasonable cost. ARTICLE XXVI - VACATION ACCRUAL Section 1. Accrual Rate. All eligible fire suppression persons shall accrue vacation at the following rate for continuous service performed in a pay status. Non-shift representation unit employees shall accrue the 40-hour equivalent--one shift equals 28 sixteen hours. a. For employees completing less than four years continuous service, the accrual rate shall be five duty shifts per year. b. For employees completing four but not more than nine years continuous service, the accrual rate shall be eight duty shifts per year. c. For employees completing nine but not more than 14 years continuous service, the accrual rate shall be 10 duty shifts per year. d. For employees completing 14 but less than 19 years continuous service, the accrual rate shall be 11 duty shifts per year. e. For employees completing 19 or more years continuous service, the accrual rate shall be 12 duty shifts per year. Section 2. Unused At Termination. Represented employees who fail to use all vacation as accrued may continue the accrual balance and be entitled to all accrued but unused vacation upon termination, except as limited below. Section 3. Limits. Vacation accrual balances shall be limited to three times the annual accrual rate. Accrual credit beyond this limit shall not be recognized or compensated, except that for employees of record as of January 1, 1984 who have vacation excess on a one-time basis shall be set aside (banked) to be subsequently used as vacation or paid at termination. No additions may be made to the bank. The bank is established only to facilitate changeover from unlimited to three times annual accrual rate limitation on vacation accrual as herein provided. ARTICLE XXVII - USE OF VACATION Section 1. Maximum Number of Slots. The maximum number of vacation scheduling slots for representation unit suppression employees is four (4) per platoon on a year- round basis. Section 2. Approvals. Vacation scheduling must be approved by the Battalion Chief or Fire Chief. The minimum is twelve (12) hours or more for suppression employees. Advance vacation schedules for suppression shall begin either at 8:00 a.m. or 8:00 p.m. Section 3. Vacation Pay. Vacation pay shall be made available in advance of regular pay day provided that employee requests such advance in writing to the Finance Department at least two weeks prior to his/her vacation date. The employee's supervisor must verify vacation date on the request. 29 Section 4. Illness on 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 5. When to be Taken. The time at which an employee may use accrued vacation leave and the amount to be taken at any one time shall be determined by the Chief with particular regard for the needs of the City, but insofar as possible, considering the wishes of the employee. Section 6. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 7. Waiting Period. Employees shall complete six months continuous service before using accrued vacation leave. Section 8. Double Compensation Prohibited. Employees shall not work for the City during their vacation. Section 9. Cash out Option. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours to a maximum of one hundred twenty (120) hours; PROVIDED, that the employee has taken eighty (80) hours of vacation off with pay in the previous twelve (12) months. ARTICLE XXVIII - SICK LEAVE Section 1. Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Section 9. Up to six (6) days (72 shift hours for suppression personnel) sick leave per year may be used for illness in the immediate family (wife, husband, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee.) Section 2. Eligibility. Regular employees shall be eligible to accrue and use sick leave. Section 3. Accrual. Sick leave shall be accrued bi-weekly, provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of six shifts per year. Section 4. Accumulation. Accumulated sick leave may be accrued without limit, except as provided in Section 8 below. Section 5. Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new 30 employee may, if necessary, use up to forty-eight (48) hours or shift equivalent 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. 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. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. When an employee finds it necessary to be absent for any reason, he/she should cause the facts to be reported to the department within 60 minutes prior to his/her regular starting time on the first working day of absence, and shall regularly report on, or account in advance for each work day thereafter unless hospitalized or otherwise indisposed. Such reports may be subject to written documentation. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Section 6. Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. Section 7. Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and Section 8. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. Section 8. Payment for Accumulated Sick Leave. Eligible employees (those hired before December 31, 1983) who leave the municipal service in good standing, or who die while employed in good standing by the City, 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 basic hourly rate of pay at termination. Full sick 31 leave accrual will be paid in the event of termination due to disability. For new employees hired after December 31, 1983, sick leave accrual accumulation will be limited to 1,000 hours with no payoff provisions for unused balance at termination for any reason. Section 9. Personal Business Leave Chargeable to Sick Leave. It is agreed between the parties that all shift personnel represented by the Union shall have the right to charge up to forty-eight (48) hours personal business leave per year to sick leave, and that all non-shift personnel shall have the right to charge up to twenty (20) hours personal business leave per year to sick leave. Such personal business leave shall be allowed only on a staffing available basis and where the provisions of the minimum staffing agreement are not affected. "Staffing available" means at or above minimum staffing levels as defined in Article XII. Section 10. Return to Work or Continue Work With Limited Duty. In cases of non- work-related injury, illness or pregnancy an employee, upon approval of the Fire Chief and the City Safety Officer, may return to work or continue work with doctor-approved limited duty. Approval for such limited duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. Shift employees must be willing to accept any non-shift limited duty schedule work location and may be subject to the reasonable availability of limited duty assignments. The City doctor may be consulted in determining work limitations. ARTICLE XXVIIIX - SUBPOENAS Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. ARTICLE XXIX - WORKERS' COMPENSATION Section 1. Status Reporting While on Disability. Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status of medical treatment therapy and physical condition. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXXI - PHYSICAL FITNESS MEDICAL EXAMINATIONS Physical fitness medical examinations for all represented employees may include 32 chest x-rays every three years unless otherwise directed by a physician, eye examination and hearing examination. ARTICLE XXXII- LEAVES OF ABSENCE WITHOUT PAY Section 1. 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 physician's verification including diagnosis and medical work restriction. Section 2. Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. 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 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. Section 9. Use of paid accruals while on leave. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued vacation 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 33 effective. ARTICLE XXXIII - LEAVES OF ABSENCE WITH PAY Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at 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 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother-in-law, father-in-law, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, 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. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty 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 for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. ARTICLE XXXIIIV – VOLUNTEER LEAVE PROGRAM The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide members of Local 1319 International Association of Fire Fighters (IAFF) employees the opportunity to donate their accrued vacation time to assist fellow members of IAFF either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic 34 illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: 1. Voluntary 2. Irrevocable 3. Confidential, unless disclosure is required by law 4. In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). 5. The employee shall be required to exhaust all other types of leave to request donated leave 6. It is understood that employees seeking or receiving leave under this program will apply for long-term disability benefits for which they may be eligible 7. Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverages through the City 8. If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required 9. The maximum donated time a donee may receive is 12 months (if available). 10. Applications to donate leave or receive leave under this Program are made to the Human Resources Department 11. This is a pilot program and is subject to cancellation by either party IAFF members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). The City reserves the right to modify or terminate this program at any time. 35 Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non- occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XXXIV- TUITION REIMBURSEMENT Section 1. Options. Effective July 1, 2004 the tuition reimbursement program was amended to provide each employee the option of receiving the $1,000 as taxable cash or as a contribution to deferred compensation. The tuition reimbursement program will be eliminated effective July 1, 2012 with no further payouts starting in FY 12-13 and on-going. ARTICLE XXXVI - PER DIEM TRAVEL EXPENSES Section 1. City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. ARTICLE XXXVII - HOUSE FUND ITEMS Section 1. Station House Fund. The station house fund per year, per shift employee shall be $10048.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with non-food house fund items: TV purchase and repair, the San Jose Mercury News, and the San Francisco Chronicle to be selected on an annual basis. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the station house fund. The Fire Fighters agree to maintain the voter registration program. ARTICLE XXXVIII - PARKING Section 1. Entitlements. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired 36 after July 1, 1994, may initially receive a parking permit for another downtown lot, subject to availability of space at the Civic Center Garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXXVIIIX- GRIEVANCES The City and the Union agree to establish a grievance procedure as follows: 1. Definition: A grievance is any complaint or dispute regarding the application of interpretation of this Memorandum of Understanding, Department rules, regulations, policies or procedures relating to wages, hours or other terms and conditions of employment. 2. Any non-probationary employee represented by the Union may file and process a grievance. Such aggrieved employees may be represented by the Union or may represent themselves in preparing and presenting their grievance at any level of review. The Union may file a grievance when a Union right not directly related to an individual employee becomes subject to dispute. 3. Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance was filed in writing. 4. Written grievances shall be submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The Union shall deliver a copy of a written grievance to the Human Resources Department Director on the same date that it is first filed with another City representative under the provisions of the below grievance procedure. 5. The time limits specified in this section may be extended by mutual agreement in writing of the aggrieved employee or Union and the reviewer concerned. Should a decision not be rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. The grievance will be considered settled if the decision of any step is not appealed within the specified time limit. 6. If a grievance is related to a promotional process to positions within the representation unit, Step I shall be directed to the Deputy Fire Chief (or Fire Marshal for FPB positions). 7. Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with the immediate supervisor by the end of the tenth business day following the discovery of the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. 37 Step II. If the grievance is not resolved through informal discussion, it may be submitted in writing to the Battalion Chief (Deputy Fire Chief for Captain grievances) within ten business days of the informal discussion. The Battalion Chief/Assistant Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step III. If the grievance is not resolved in Step II, it may be submitted in writing to the Fire Chief within ten business days of receipt of the Battalion Chief's/ Deputy Fire Chief's written response. The Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step IV. If the grievance is not resolved in Step III, the aggrieved employee may submit the grievance to the City Manager for final determination or to binding grievance arbitration. All Step IV appeals must be filed in writing at the Human Resources Department Office within ten business days of receipt of the Fire Chief's response under Step III. All hearings before the City Manager shall be pursuant to the rules and regulations set forth in the City of Palo Alto Merit Rules and Regulations. Hearings before an arbitrator will be as set forth below. In the event the aggrieved employee decides to proceed to arbitration, he/she shall select jointly with the Director of Human Resources an arbitrator. If the parties are unable to agree on an arbitrator, they shall jointly request a panel of five qualified and experienced arbitrators from the State Conciliation Service. Upon receipt of the list of arbitrators, the names shall be alternately struck until one name remains who shall serve as arbitrator. The arbitrator shall be jointly contacted by the parties. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of the Memorandum of Agreement and such Merit System rules, regulations, policies, procedures, City ordinances or regulations 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 appealed to the arbitrator. The arbitrator shall be without power to make any decision: a. Regarding matters of interest. b. Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. c. Granting any wage increases or decreases. d. Granting pay or benefits for any period of time prior to the execution date of this Memorandum of Agreement. Where either party seeks arbitration and the other party claims the matter is not 38 subject to the arbitration provisions of the Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in 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. Copies of the arbitrator's decision shall be submitted to the City and the aggrieved employee. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. It is further agreed that the provisions of this section shall be incorporated as part of Chapter 11 of the City of Palo Alto Merit System Rules and Regulations. Existing procedures set forth in Chapter 11, to the extent they are inconsistent with the provisions contained herein, are superseded. ARTICLE XXXIXL- SAFETY COMMITTEE Section 1. Committee A Safety Committee comprised of four representation unit members appointed by the Union, and at least two members of Management, will continue to meet. The Committee may make safety recommendations to the Fire Chief regarding equipment, vehicles and apparatus and may review all accidents involving represented personnel. Management shall inform the Safety Committee of all accidents involving injuries to represented personnel. ARTICLE XLI – MISCELLANEOUS Section 1. T-Shirts. The City will issue four T-shirts to each uniformed employee each July These T-shirts are for use on duty only and will be maintained by the employee. Section 2. Removal of Disciplinary Actions. Records of disciplinary actions shall be removed from the personnel file of a representation unit employee upon written request by the employee after a period of three years, or sooner if mutually agreed by the Fire Chief and the employee. ARTICLE XLII - FULL UNDERSTANDING Section 1. Full and Entire Understanding. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Fair Labor Standards Act. Compensatory time off with Management approval may be used as an alternative to overtime compensation only within the 27- day work period within which the overtime is worked. Section 3. Severability. Should any of the provisions herein contained be rendered or 39 declared invalid by reason of any existing State or Federal legislation or by reason of State or U.S. Supreme Court ruling, 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 4. Good Faith. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Understanding be administered and observed in good faith. Section 5. Merit System Rules and Regulations. During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. Section 6. Station Consolidation or Relocation . During the term of this agreement, at management request, the parties agree to meet and confer with regard to issues pertaining to fire station consolidation or relocation. Section 7. Meet and Confer. Nothing in this agreement shall preclude the parties from mutually agreeing to meet and confer on any subject within the scope of representation during the term of this agreement. ARTICLE XLIII – 48/96 Work Schedule Pilot Program The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire Department policy 205.6 typical workday and 1009.8.1 Reporting for Duty- Holidays. The City of Palo Alto (City) and the International Association of Fire Fighters, Local 1319 (Union) agree to have the City evaluate changing the Palo Alto Fire Department’s work schedule for 56-hour personnel from its current schedule to a “48/96” work schedule with the goal of implementing a pilot schedule change in January 2017, if the parties are in agreement and required administrative and technology changes can be implemented by this date. Upon ratification of a new Memorandum of Agreement, a Labor Management Committee (LMC), including representatives from the Union, Fire Management, the City Manager’s Office, Human Resources, and the Administrative Services Department, will meet to design and evaluate the possible implementation of a “48/96” work schedule that is FLSA compliant, cost neutral, meets the needs of the City and does not compromise the effectiveness of fire services. 40 The goal will be for the Committee to complete preparation for the evaluation by October 1, 2016. If a schedule can be designed that is FLSA compliant, cost neutral and does not compromise service to the community, the parties agree to move forward with a pilot work schedule change. The City will begin making required administrative and technology changes in order to implement the pilot “48/96” work schedule by January 1, 2017. The actual date of implementation will be dependent upon the City’s ability to modify payroll, staff scheduling and any other related systems to support the new schedule. The initial “Pilot Program” is planned to run for the term of the MOA, but may be terminated at any time if is determined to have a negative impact on costs or workforce effectiveness. The Pilot will conclude at the end of the MOA unless the parties mutually agree to extend the Pilot or adopt the Pilot as the standard 56-hour work schedule. ARTICLE XLIII – FUTURE SERVICE DELIVERY MODELS Effective upon request of the City, the parties will meet and confer in good faith regarding the service delivery model of current inspection services and transport during the term of this Agreement. ARTICLE XLIIV - DURATION This Memorandum of Agreement shall become effective upon adoption by the City Council for the period of July 1, 2014 through June 30, 202118. 41 EXECUTED: FOR: FOR: INTERNATIONAL ASSOCIATION CIT Y OF PALO ALTO FIRE FIGHTERS Ryan Stoddard, President Local 1319 James Keene, City Manager Nate Heydorff, Vice President Local 1319 Rumi Portillo, Human Resources Director Doug Slezak, Treasurer Local 1319 Geoffrey Blackshire, Deputy Fire Chief Dennis Wallach, Mastagni, Holstedt APC Fra nk Lee, Senior HR Administrator Dania Torres Wong, Chief Negotiator Renne Sloan Holtzman & Sakai Ryan Stoddard, President Local 1319 Nate Heydorff, Vice President Local 1319 Sunny Johnson-Gutter, Secretary Local 1319 James Keene, City Manager Rumi Portillo, Human Resources Director Sandra Blanch, Assistant Director of Human Resources Nicholas Raisch, Manager of Employee Relations and Training Geoffrey Blackshire, Deputy Fire Chief Maria Patino, Human Resources Representative Sunny Johnson-Gutter, Secretary Local 1319 Eric Nickel, Fire Chief Sarah Wallace, General Board member Local 1319 Catherine Capriles, Deputy Fire Chief Stephen Lindsey, General Board membe Local 1319 Stephen Lindsey, General Board membe Local 1319 Amber Cameron, Senior Management Analyst Kyle Salisbury, General Board member Local 1319 Kyle Salisbury, General Board member Local 1319 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 601 Non‐exempt SH FIRE APPARATUS OP 1 33.80$ 1 34.81$ 1 35.86$ 601 2 35.58$ 2 36.64$ 2 37.75$ 601 3 37.45$ 3 38.57$ 3 39.74$ 601 4 39.42$ 4 40.60$ 4 41.83$ 601 5 41.49$ 10,068$ 120,819$ 5 42.74$ 10,372$ 124,459$ 5 44.03$ 10,685$ 128,215$ 602 Non‐exempt SH FIRE CAPTAIN 1 40.09$ 1 41.30$ 1 42.54$ 602 2 42.20$ 2 43.47$ 2 44.78$ 602 3 44.42$ 3 45.76$ 3 47.14$ 602 4 46.76$ 4 48.17$ 4 49.62$ 602 5 49.22$ 11,944$ 143,329$ 5 50.70$ 12,303$ 147,638$ 5 52.23$ 12,674$ 152,094$ 603 Non‐exempt SH FIRE INSPECTOR 1 42.10$ 1 43.37$ 1 44.68$ 603 2 44.32$ 2 45.65$ 2 47.03$ 603 3 46.65$ 3 48.05$ 3 49.50$ 603 4 49.10$ 4 50.58$ 4 52.10$ 603 5 51.68$ 12,541$ 150,492$ 5 53.24$ 12,920$ 155,035$ 5 54.84$ 13,308$ 159,694$ 604 Non‐exempt SH FIRE FIGHTER 1 31.62$ 1 32.57$ 1 33.54$ 604 2 33.28$ 2 34.28$ 2 35.30$ 604 3 35.03$ 3 36.08$ 3 37.16$ 604 4 36.87$ 4 37.98$ 4 39.12$ 604 5 38.81$ 9,418$ 113,015$ 5 39.98$ 9,702$ 116,422$ 5 41.18$ 9,993$ 119,916$ 606 Non‐exempt SH OPER PARAMEDIC‐12.5 1 38.01$ 1 39.17$ 1 40.35$ 606 2 40.01$ 2 41.23$ 2 42.47$ 606 3 42.12$ 3 43.40$ 3 44.70$ 606 4 44.34$ 4 45.68$ 4 47.05$ 606 5 46.67$ 11,325$ 135,903$ 5 48.08$ 11,667$ 140,009$ 5 49.53$ 12,019$ 144,231$ 608 Non‐exempt SH CAPTAIN PARAMEDIC‐12.5 1 45.10$ 1 46.46$ 1 47.86$ 608 2 47.47$ 2 48.91$ 2 50.38$ 608 3 49.97$ 3 51.48$ 3 53.03$ 608 4 52.60$ 4 54.19$ 4 55.82$ 608 5 55.37$ 13,436$ 161,237$ 5 57.04$ 13,842$ 166,100$ 5 58.76$ 14,259$ 171,109$ 610 Non‐exempt SH INSPCTR PARAMDC‐12.5 1 45.51$ 1 46.87$ 1 48.29$ 610 2 47.91$ 2 49.34$ 2 50.83$ 610 3 50.43$ 3 51.94$ 3 53.50$ 610 4 53.08$ 4 54.67$ 4 56.32$ 610 5 55.87$ 13,558$ 162,693$ 5 57.55$ 13,965$ 167,586$ 5 59.28$ 14,385$ 172,623$ 676 Non‐exempt SH F FIGHTR PARAMEDC‐12.5 1 35.57$ 1 36.62$ 1 37.72$ 676 2 37.44$ 2 38.55$ 2 39.71$ 676 3 39.41$ 3 40.58$ 3 41.80$ 676 4 41.48$ 4 42.72$ 4 44.00$ 676 5 43.66$ 10,595$ 127,138$ 5 44.97$ 10,913$ 130,953$ 5 46.32$ 11,240$ 134,884$ IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) Appendix A 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 677 Non‐exempt SH HAZ MAT SPEC 1 43.32$ 1 44.63$ 1 45.97$ 677 2 45.60$ 2 46.98$ 2 48.39$ 677 3 48.00$ 3 49.45$ 3 50.94$ 677 4 50.53$ 4 52.05$ 4 53.62$ 677 5 53.19$ 12,907$ 154,889$ 5 54.79$ 13,296$ 159,548$ 5 56.44$ 13,696$ 164,353$ 678 Non‐exempt SH HAZ MAT INSPECTOR 1 42.10$ 1 43.37$ 1 44.68$ 678 2 44.32$ 2 45.65$ 2 47.03$ 678 3 46.65$ 3 48.05$ 3 49.50$ 678 4 49.10$ 4 50.58$ 4 52.10$ 678 5 51.68$ 12,541$ 150,492$ 5 53.24$ 12,920$ 155,035$ 5 54.84$ 13,308$ 159,694$ 680 Non‐exempt SH FIRE FIGHTER HAZ MAT 1 33.18$ 1 34.20$ 1 35.23$ 680 2 34.93$ 2 36.00$ 2 37.08$ 680 3 36.77$ 3 37.89$ 3 39.03$ 680 4 38.71$ 4 39.88$ 4 41.08$ 680 5 40.75$ 9,889$ 118,664$ 5 41.98$ 10,187$ 122,246$ 5 43.24$ 10,493$ 125,915$ 681 Non‐exempt SH FIRE APPR OP HAZ MAT 1 35.47$ 1 36.56$ 1 37.64$ 681 2 37.34$ 2 38.48$ 2 39.62$ 681 3 39.31$ 3 40.50$ 3 41.71$ 681 4 41.38$ 4 42.63$ 4 43.91$ 681 5 43.56$ 10,571$ 126,847$ 5 44.87$ 10,888$ 130,661$ 5 46.22$ 11,216$ 134,593$ 682 Non‐exempt SH FIRE CAPTAIN HAZ MAT 1 42.10$ 1 43.38$ 1 44.68$ 682 2 44.32$ 2 45.66$ 2 47.03$ 682 3 46.65$ 3 48.06$ 3 49.50$ 682 4 49.11$ 4 50.59$ 4 52.11$ 682 5 51.69$ 12,543$ 150,521$ 5 53.25$ 12,922$ 155,064$ 5 54.85$ 13,310$ 159,723$ 683 Non‐exempt SH FIRE FIGHTER EMT 1 32.57$ 1 33.54$ 1 34.56$ 683 2 34.28$ 2 35.30$ 2 36.38$ 683 3 36.08$ 3 37.16$ 3 38.29$ 683 4 37.98$ 4 39.12$ 4 40.30$ 683 5 39.98$ 9,702$ 116,422$ 5 41.18$ 9,993$ 119,916$ 5 42.42$ 10,294$ 123,527$ 684 Non‐exempt SH FIRE FGHTR HZ MT EMT 1 34.14$ 1 35.17$ 1 36.23$ 684 2 35.94$ 2 37.02$ 2 38.14$ 684 3 37.83$ 3 38.97$ 3 40.15$ 684 4 39.82$ 4 41.02$ 4 42.26$ 684 5 41.92$ 10,173$ 122,071$ 5 43.18$ 10,478$ 125,740$ 5 44.48$ 10,794$ 129,526$ 685 Non‐exempt SH FIRE APPARATUS OP EMT 1 34.81$ 1 35.86$ 1 36.95$ 685 2 36.64$ 2 37.75$ 2 38.89$ 685 3 38.57$ 3 39.74$ 3 40.94$ 685 4 40.60$ 4 41.83$ 4 43.09$ 685 5 42.74$ 10,372$ 124,459$ 5 44.03$ 10,685$ 128,215$ 5 45.36$ 11,007$ 132,088$ 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 686 Non‐exempt SH FIRE AP OP HZ MT EMT 1 36.50$ 1 37.60$ 1 38.72$ 686 2 38.42$ 2 39.58$ 2 40.76$ 686 3 40.44$ 3 41.66$ 3 42.91$ 686 4 42.57$ 4 43.85$ 4 45.17$ 686 5 44.81$ 10,874$ 130,487$ 5 46.16$ 11,201$ 134,418$ 5 47.55$ 11,539$ 138,466$ 687 Non‐exempt SH FIRE CAPTAIN EMT 1 41.30$ 1 42.55$ 1 43.82$ 687 2 43.47$ 2 44.79$ 2 46.13$ 687 3 45.76$ 3 47.15$ 3 48.56$ 687 4 48.17$ 4 49.63$ 4 51.12$ 687 5 50.71$ 12,306$ 147,668$ 5 52.24$ 12,677$ 152,123$ 5 53.81$ 13,058$ 156,695$ 688 Non‐exempt SH FIRE CAP HAZ MAT EMT 1 43.30$ 1 44.61$ 1 45.95$ 688 2 45.58$ 2 46.96$ 2 48.37$ 688 3 47.98$ 3 49.43$ 3 50.92$ 688 4 50.51$ 4 52.03$ 4 53.60$ 688 5 53.17$ 12,903$ 154,831$ 5 54.77$ 13,291$ 159,490$ 5 56.42$ 13,691$ 164,295$ 689 Non‐exempt SH FIRE INSPECTOR EMT 1 43.39$ 1 44.68$ 1 46.03$ 689 2 45.67$ 2 47.03$ 2 48.45$ 689 3 48.07$ 3 49.51$ 3 51.00$ 689 4 50.60$ 4 52.12$ 4 53.68$ 689 5 53.26$ 12,924$ 155,093$ 5 54.86$ 13,313$ 159,752$ 5 56.51$ 13,713$ 164,557$ 691 Non‐exempt SH F FGH PRDMD‐12.5 EMT 1 36.52$ 1 37.62$ 1 38.74$ 691 2 38.44$ 2 39.60$ 2 40.78$ 691 3 40.46$ 3 41.68$ 3 42.93$ 691 4 42.59$ 4 43.87$ 4 45.19$ 691 5 44.83$ 10,879$ 130,545$ 5 46.18$ 11,206$ 134,476$ 5 47.57$ 11,544$ 138,524$ 693 Non‐exempt SH OPR PRMDC‐12.5 EMT 1 39.03$ 1 40.20$ 1 41.42$ 693 2 41.08$ 2 42.32$ 2 43.60$ 693 3 43.24$ 3 44.55$ 3 45.89$ 693 4 45.52$ 4 46.89$ 4 48.31$ 693 5 47.92$ 11,629$ 139,543$ 5 49.36$ 11,978$ 143,736$ 5 50.85$ 12,340$ 148,075$ 695 Non‐exempt SH CAPT PRMDC‐12.5 EMT 1 46.31$ 1 47.71$ 1 49.13$ 695 2 48.75$ 2 50.22$ 2 51.72$ 695 3 51.32$ 3 52.86$ 3 54.44$ 695 4 54.02$ 4 55.64$ 4 57.31$ 695 5 56.86$ 13,798$ 165,576$ 5 58.57$ 14,213$ 170,556$ 5 60.33$ 14,640$ 175,681$ 696 Non‐exempt SH HAZ MAT SPEC EMT 1 44.63$ 1 45.97$ 1 47.36$ 696 2 46.98$ 2 48.39$ 2 49.85$ 696 3 49.45$ 3 50.94$ 3 52.47$ 696 4 52.05$ 4 53.62$ 4 55.23$ 696 5 54.79$ 13,296$ 159,548$ 5 56.44$ 13,696$ 164,353$ 5 58.14$ 14,109$ 169,304$ 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 671 Non‐exempt SH FIRE FGHTR EMT HAZ MT PARA 1 38.09$ 1 39.24$ 1 40.41$ 671 2 40.09$ 2 41.30$ 2 42.54$ 671 3 42.20$ 3 43.47$ 3 44.78$ 671 4 44.42$ 4 45.76$ 4 47.14$ 671 5 46.76$ 11,347$ 136,165$ 5 48.17$ 11,689$ 140,271$ 5 49.62$ 12,041$ 144,493$ 672 Non‐exempt SH FIRE AP OP EMT HAZ MT PARA 1 40.72$ 1 41.94$ 1 43.21$ 672 2 42.86$ 2 44.15$ 2 45.48$ 672 3 45.12$ 3 46.47$ 3 47.87$ 672 4 47.49$ 4 48.92$ 4 50.39$ 672 5 49.99$ 12,131$ 145,571$ 5 51.49$ 12,495$ 149,939$ 5 53.04$ 12,871$ 154,452$ 661 Non‐exempt SH FIRE CPT EMT HAZ MT PARA 1 48.32$ 1 49.77$ 1 51.27$ 661 2 50.86$ 2 52.39$ 2 53.97$ 661 3 53.54$ 3 55.15$ 3 56.81$ 661 4 56.36$ 4 58.05$ 4 59.80$ 661 5 59.33$ 14,397$ 172,769$ 5 61.11$ 14,829$ 177,952$ 5 62.95$ 15,276$ 183,310$ 634 Non‐exempt NS FIRE APPARATUS OP 1 47.30$ 1 48.73$ 1 50.19$ 634 2 49.79$ 2 51.29$ 2 52.83$ 634 3 52.41$ 3 53.99$ 3 55.61$ 634 4 55.17$ 4 56.83$ 4 58.54$ 634 5 58.07$ 10,065$ 120,786$ 5 59.82$ 10,369$ 124,426$ 5 61.62$ 10,681$ 128,170$ 635 Non‐exempt NS FIRE CAPTAIN 1 56.14$ 1 57.83$ 1 59.56$ 635 2 59.09$ 2 60.87$ 2 62.69$ 635 3 62.20$ 3 64.07$ 3 65.99$ 635 4 65.47$ 4 67.44$ 4 69.46$ 635 5 68.92$ 11,946$ 143,354$ 5 70.99$ 12,305$ 147,659$ 5 73.12$ 12,674$ 152,090$ 636 Non‐exempt NS FIRE INSPECTOR 1 58.94$ 1 60.71$ 1 62.54$ 636 2 62.04$ 2 63.91$ 2 65.83$ 636 3 65.30$ 3 67.27$ 3 69.29$ 636 4 68.74$ 4 70.81$ 4 72.94$ 636 5 72.36$ 12,542$ 150,509$ 5 74.54$ 12,920$ 155,043$ 5 76.78$ 13,309$ 159,702$ 637 Non‐exempt NS FIRE FIGHTER 1 44.25$ 1 45.58$ 1 46.95$ 637 2 46.58$ 2 47.98$ 2 49.42$ 637 3 49.03$ 3 50.50$ 3 52.02$ 637 4 51.61$ 4 53.16$ 4 54.76$ 637 5 54.33$ 9,417$ 113,006$ 5 55.96$ 9,700$ 116,397$ 5 57.64$ 9,991$ 119,891$ 638 Non‐exempt NS OPER PARAMEDIC‐12.5 1 53.20$ 1 54.80$ 1 56.45$ 638 2 56.00$ 2 57.68$ 2 59.42$ 638 3 58.95$ 3 60.72$ 3 62.55$ 638 4 62.05$ 4 63.92$ 4 65.84$ 638 5 65.32$ 11,322$ 135,866$ 5 67.28$ 11,662$ 139,942$ 5 69.30$ 12,012$ 144,144$ 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 639 Non‐exempt NS CAPTAIN PARAMEDIC‐12.5 1 63.15$ 1 65.06$ 1 67.00$ 639 2 66.47$ 2 68.48$ 2 70.53$ 639 3 69.97$ 3 72.08$ 3 74.24$ 639 4 73.65$ 4 75.87$ 4 78.15$ 639 5 77.53$ 13,439$ 161,262$ 5 79.86$ 13,842$ 166,109$ 5 82.26$ 14,258$ 171,101$ 641 Non‐exempt NS INSPCTR PARAMDC‐12.5 1 63.69$ 1 65.60$ 1 67.57$ 641 2 67.04$ 2 69.05$ 2 71.13$ 641 3 70.57$ 3 72.68$ 3 74.87$ 641 4 74.28$ 4 76.51$ 4 78.81$ 641 5 78.19$ 13,553$ 162,635$ 5 80.54$ 13,960$ 167,523$ 5 82.96$ 14,380$ 172,557$ 642 Non‐exempt NS 40‐HR TRAINING CAPTAIN 1 58.94$ 1 60.71$ 1 62.54$ 642 2 62.04$ 2 63.91$ 2 65.83$ 642 3 65.30$ 3 67.27$ 3 69.29$ 642 4 68.74$ 4 70.81$ 4 72.94$ 642 5 72.36$ 12,542$ 150,509$ 5 74.54$ 12,920$ 155,043$ 5 76.78$ 13,309$ 159,702$ 643 Non‐exempt NS 40‐HR TRAINING CAPTAIN EMT 1 60.71$ 1 62.53$ 1 64.41$ 643 2 63.90$ 2 65.82$ 2 67.80$ 643 3 67.26$ 3 69.28$ 3 71.37$ 643 4 70.80$ 4 72.93$ 4 75.13$ 643 5 74.53$ 12,919$ 155,022$ 5 76.77$ 13,307$ 159,682$ 5 79.08$ 13,707$ 164,486$ 644 Non‐exempt NS F FIGHTR PARAMEDC‐12.5 1 49.77$ 1 51.26$ 1 52.80$ 644 2 52.39$ 2 53.96$ 2 55.58$ 644 3 55.15$ 3 56.80$ 3 58.51$ 644 4 58.05$ 4 59.79$ 4 61.59$ 644 5 61.10$ 10,591$ 127,088$ 5 62.94$ 10,910$ 130,915$ 5 64.83$ 11,237$ 134,846$ 645 Non‐exempt NS HAZ MAT SPEC 1 60.67$ 1 62.49$ 1 64.37$ 645 2 63.86$ 2 65.78$ 2 67.76$ 645 3 67.22$ 3 69.24$ 3 71.33$ 645 4 70.76$ 4 72.88$ 4 75.08$ 645 5 74.48$ 12,910$ 154,918$ 5 76.72$ 13,298$ 159,578$ 5 79.03$ 13,699$ 164,382$ 646 Non‐exempt NS HAZ MAT INSPECTOR 1 58.94$ 1 60.71$ 1 62.54$ 646 2 62.04$ 2 63.91$ 2 65.83$ 646 3 65.30$ 3 67.27$ 3 69.29$ 646 4 68.74$ 4 70.81$ 4 72.94$ 646 5 72.36$ 12,542$ 150,509$ 5 74.54$ 12,920$ 155,043$ 5 76.78$ 13,309$ 159,702$ 647 Non‐exempt NS FIRE FIGHTER HAZ MAT 1 46.46$ 1 47.85$ 1 49.30$ 647 2 48.90$ 2 50.37$ 2 51.89$ 647 3 51.47$ 3 53.02$ 3 54.62$ 647 4 54.18$ 4 55.81$ 4 57.49$ 647 5 57.03$ 9,885$ 118,622$ 5 58.75$ 10,183$ 122,200$ 5 60.52$ 10,490$ 125,882$ 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 650 Non‐exempt NS FIRE APPR OP HAZ MAT 1 49.66$ 1 51.16$ 1 52.70$ 650 2 52.27$ 2 53.85$ 2 55.47$ 650 3 55.02$ 3 56.68$ 3 58.39$ 650 4 57.92$ 4 59.66$ 4 61.46$ 650 5 60.97$ 10,568$ 126,818$ 5 62.80$ 10,885$ 130,624$ 5 64.69$ 11,213$ 134,555$ 648 Non‐exempt NS FIRE CAPTAIN HAZ MAT 1 58.94$ 1 60.71$ 1 62.54$ 648 2 62.04$ 2 63.91$ 2 65.83$ 648 3 65.30$ 3 67.27$ 3 69.29$ 648 4 68.74$ 4 70.81$ 4 72.94$ 648 5 72.36$ 12,542$ 150,509$ 5 74.54$ 12,920$ 155,043$ 5 76.78$ 13,309$ 159,702$ 649 Non‐exempt NS FIRE FIGHTER EMT 1 45.58$ 1 46.95$ 1 48.36$ 649 2 47.98$ 2 49.42$ 2 50.90$ 649 3 50.50$ 3 52.02$ 3 53.58$ 649 4 53.16$ 4 54.76$ 4 56.40$ 649 5 55.96$ 9,700$ 116,397$ 5 57.64$ 9,991$ 119,891$ 5 59.37$ 10,291$ 123,490$ 651 Non‐exempt NS FIRE FGHTR HZ MT EMT 1 47.79$ 1 49.23$ 1 50.71$ 651 2 50.30$ 2 51.82$ 2 53.38$ 651 3 52.95$ 3 54.55$ 3 56.19$ 651 4 55.74$ 4 57.42$ 4 59.15$ 651 5 58.67$ 10,169$ 122,034$ 5 60.44$ 10,476$ 125,715$ 5 62.26$ 10,792$ 129,501$ 652 Non‐exempt NS FIRE APPARATUS OP EMT 1 48.73$ 1 50.19$ 1 51.71$ 652 2 51.29$ 2 52.83$ 2 54.43$ 652 3 53.99$ 3 55.61$ 3 57.29$ 652 4 56.83$ 4 58.54$ 4 60.30$ 652 5 59.82$ 10,369$ 124,426$ 5 61.62$ 10,681$ 128,170$ 5 63.47$ 11,001$ 132,018$ 653 Non‐exempt NS FIRE AP OP HZ MT EMT 1 51.08$ 1 52.62$ 1 54.21$ 653 2 53.77$ 2 55.39$ 2 57.06$ 653 3 56.60$ 3 58.31$ 3 60.06$ 653 4 59.58$ 4 61.38$ 4 63.22$ 653 5 62.72$ 10,871$ 130,458$ 5 64.61$ 11,199$ 134,389$ 5 66.55$ 11,535$ 138,424$ 655 Non‐exempt NS FIRE CAPTAIN EMT 1 57.84$ 1 59.57$ 1 61.35$ 655 2 60.88$ 2 62.70$ 2 64.58$ 655 3 64.08$ 3 66.00$ 3 67.98$ 655 4 67.45$ 4 69.47$ 4 71.56$ 655 5 71.00$ 12,307$ 147,680$ 5 73.13$ 12,676$ 152,110$ 5 75.33$ 13,057$ 156,686$ 654 Non‐exempt NS FIRE CAP HAZ MAT EMT 1 60.60$ 1 62.42$ 1 64.30$ 654 2 63.79$ 2 65.71$ 2 67.68$ 654 3 67.15$ 3 69.17$ 3 71.24$ 654 4 70.68$ 4 72.81$ 4 74.99$ 654 5 74.40$ 12,896$ 154,752$ 5 76.64$ 13,284$ 159,411$ 5 78.94$ 13,683$ 164,195$ 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 656 Non‐exempt NS FIRE INSPECTOR EMT 1 60.71$ 1 62.53$ 1 64.41$ 656 2 63.90$ 2 65.82$ 2 67.80$ 656 3 67.26$ 3 69.28$ 3 71.37$ 656 4 70.80$ 4 72.93$ 4 75.13$ 656 5 74.53$ 12,919$ 155,022$ 5 76.77$ 13,307$ 159,682$ 5 79.08$ 13,707$ 164,486$ 657 Non‐exempt NS F FGH PRDMD‐12.5 EMT 1 51.11$ 1 52.65$ 1 54.24$ 657 2 53.80$ 2 55.42$ 2 57.09$ 657 3 56.63$ 3 58.34$ 3 60.09$ 657 4 59.61$ 4 61.41$ 4 63.25$ 657 5 62.75$ 10,877$ 130,520$ 5 64.64$ 11,204$ 134,451$ 5 66.58$ 11,541$ 138,486$ 658 Non‐exempt NS OPR PRMDC‐12.5 EMT 1 54.63$ 1 56.28$ 1 57.97$ 658 2 57.50$ 2 59.24$ 2 61.02$ 658 3 60.53$ 3 62.36$ 3 64.23$ 658 4 63.72$ 4 65.64$ 4 67.61$ 658 5 67.07$ 11,625$ 139,506$ 5 69.09$ 11,976$ 143,707$ 5 71.17$ 12,336$ 148,034$ 697 Non‐exempt NS CAPT PRMDC‐12.5 EMT 1 64.83$ 1 66.78$ 1 68.78$ 697 2 68.24$ 2 70.29$ 2 72.40$ 697 3 71.83$ 3 73.99$ 3 76.21$ 697 4 75.61$ 4 77.88$ 4 80.22$ 697 5 79.59$ 13,796$ 165,547$ 5 81.98$ 14,210$ 170,518$ 5 84.44$ 14,636$ 175,635$ 660 Non‐exempt NS HAZ MAT INSPECTOR EMT 1 60.71$ 1 62.53$ 1 64.41$ 660 2 63.90$ 2 65.82$ 2 67.80$ 660 3 67.26$ 3 69.28$ 3 71.37$ 660 4 70.80$ 4 72.93$ 4 75.13$ 660 5 74.53$ 12,919$ 155,022$ 5 76.77$ 13,307$ 159,682$ 5 79.08$ 13,707$ 164,486$ 659 Non‐exempt NS HAZ MAT SPEC EMT 1 62.48$ 1 64.35$ 1 66.29$ 659 2 65.77$ 2 67.74$ 2 69.78$ 659 3 69.23$ 3 71.31$ 3 73.45$ 659 4 72.87$ 4 75.06$ 4 77.32$ 659 5 76.70$ 13,295$ 159,536$ 5 79.01$ 13,695$ 164,341$ 5 81.39$ 14,108$ 169,291$ 673 Non‐exempt NS FIRE FGHTR EMT HAZ MT PARA 1 53.30$ 1 54.90$ 1 56.55$ 673 2 56.10$ 2 57.79$ 2 59.53$ 673 3 59.05$ 3 60.83$ 3 62.66$ 673 4 62.16$ 4 64.03$ 4 65.96$ 673 5 65.43$ 11,341$ 136,094$ 5 67.40$ 11,683$ 140,192$ 5 69.43$ 12,035$ 144,414$ 674 Non‐exempt NS FIRE AP OP EMT HAZ MT PARA 1 56.99$ 1 58.71$ 1 60.47$ 674 2 59.99$ 2 61.80$ 2 63.65$ 674 3 63.15$ 3 65.05$ 3 67.00$ 674 4 66.47$ 4 68.47$ 4 70.53$ 674 5 69.97$ 12,128$ 145,538$ 5 72.07$ 12,492$ 149,906$ 5 74.24$ 12,868$ 154,419$ 2 3 4 6 7 8 9 11 12 13 14 Job Code FLSA SH/NS Job Title IAFF Salary Schedule Effective the pay period following adoption (5.5% Increase) Effective first full pay period following July 1, 2019 (3% Increase) Effective first full pay period following July 1, 2020 (3% Increase) 662 Non‐exempt NS FIRE CPT EMT HAZ MT PARA 1 67.63$ 1 69.66$ 1 71.76$ 662 2 71.19$ 2 73.33$ 2 75.54$ 662 3 74.94$ 3 77.19$ 3 79.52$ 662 4 78.88$ 4 81.25$ 4 83.70$ 662 5 83.03$ 14,392$ 172,702$ 5 85.53$ 14,825$ 177,902$ 5 88.10$ 15,271$ 183,248$ 51 APPENDIX B Letter of Intent The City and IAFF during the term of this agreement will convene a committee to discuss a strike team relief process. The parties mutually agree there is value in giving employees returning from lengthy strike team deployments access to additional leave banks which they currently are unable to utilize. This committee will develop consistent practices for the department to address what steps should be taken and what leave banks employees use based on their return time and date. A new practice shall only be implemented if mutual agreement is reached. Memorandum of Agreement City of Palo Alto and Palo Alto Fire Chiefs’ Association October 1, 2018– June 30, 2021 1 MEMORANDUM OF AGREEMENT Table of Contents PREAMBLE ____________________________________________________________________________________ 4 ARTICLE I - RECOGNITION _______________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 ARTICLE II - NO DISCRIMINATION _________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 SECTION 2 ___________________________________________________________________________________ 4 ARTICLE III - PAYROLL DEDUCTIONS _______________________________________________________________ 4 SECTION 1 ___________________________________________________________________________________ 4 SECTION 2. CERTIFICATION OF UNION MEMBERSHIP _______________________________________________________ 5 SECTION 3. INDEMNIFICATION ______________________________________________________________________ 5 ARTICLE IV - NO STRIKES ________________________________________________________________________ 5 SECTION 1 ___________________________________________________________________________________ 5 ARTICLE V - SALARY PROVISIONS _________________________________________________________________ 5 SECTION 1. SALARY RANGE ADJUSTMENTS. _____________________________________________________________ 5 SECTION 2. EMT DIFFERENTIAL _____________________________________________________________________ 6 SECTION 3. 40-HOUR WORK WEEK ASSIGNMENT DIFFERENTIAL _______________________________________________ 6 SECTION 4. OUT OF COUNTY STRIKE TEAM PAY. _________________________________________________________ 6 ARTICLE VI – HOLIDAYS _________________________________________________________________________ 7 SECTION 1. NAMED HOLIDAYS. _____________________________________________________________________ 7 SECTION 2. 56-HOUR WORK WEEK ASSIGNMENTS ________________________________________________________ 7 SECTION 3. 40-HOUR WORK WEEK ASSIGNMENTS. _______________________________________________________ 7 ARTICLE VII - VACATION ACCRUAL _________________________________________________________________ 7 SECTION 1. ___________________________________________________________________________________ 7 SECTION 2. 56-HOUR WORKWEEK ASSIGNMENTS ________________________________________________________ 7 SECTION 3. 40-HOUR WORKWEEK ASSIGNMENTS. ________________________________________________________ 8 ARTICLE VIII - VACATION CASH OUT _______________________________________________________________ 8 SECTION 1. LIMITATION ON USE. ____________________________________________________________________ 8 SECTION 2. CASH OUT OPTION. _____________________________________________________________________ 9 ARTICLE IX - MANAGEMENT ANNUAL LEAVE ________________________________________________________ 9 SECTION 1 ___________________________________________________________________________________ 9 ARTICLE X - OTHER PAID LEAVES _________________________________________________________________ 10 SECTION 1. CITY MANAGER GRANTED LEAVES __________________________________________________________ 10 SECTION 2. COUNCIL GRANTED LEAVE _______________________________________________________________ 10 SECTION 3. EMPLOYEE'S TIME OFF TO VOTE ___________________________________________________________ 10 SECTION 4. LEAVES OF ABSENCE; DEATH IN IMMEDIATE FAMILY ______________________________________________ 10 SECTION 5. JURY DUTY; LEAVE OF ABSENCE ____________________________________________________________ 10 2 SECTION 6. SUBPOENAS _________________________________________________________________________ 10 ARTICLE XI - OTHER LEAVE PROVISIONS ___________________________________________________________ 11 SECTION 1. DISABILITY. __________________________________________________________________________ 11 SECTION 2. OTHER UNPAID LEAVES. _________________________________________________________________ 11 SECTION 3. ACCRUED VACATION CREDITS. _____________________________________________________________ 11 SECTION 4. APPROVAL OF DEPARTMENT HEAD. _________________________________________________________ 11 SECTION 5. APPROVAL BY CITY MANAGER _____________________________________________________________ 11 SECTION 6. ABSENCE WITHOUT LEAVE. _______________________________________________________________ 11 SECTION 7. LEAVE OF ABSENCE; DEATH OUTSIDE THE IMMEDIATE FAMILY. _______________________________________ 11 SECTION 8. MILITARY LEAVE OF ABSENCE. _____________________________________________________________ 11 ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM _________________________________________ 11 SECTION 1. __________________________________________________________________________________ 11 SECTION 2. __________________________________________________________________________________ 12 SECTION 3. __________________________________________________________________________________ 12 SECTION 4. __________________________________________________________________________________ 12 SECTION 5. __________________________________________________________________________________ 13 SECTION 6. __________________________________________________________________________________ 13 ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS _________________________________ 13 ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT ___________________________________________________ 14 SECTION 1. __________________________________________________________________________________ 14 ARTICLE XV - PHYSICAL EXAMS __________________________________________________________________ 15 ARTICLE XVI - BENEFIT PROGRAMS _______________________________________________________________ 15 SECTION 1. HEALTH PLAN - ACTIVE EMPLOYEES ______________________________________________________ 15 SECTION 2. DUAL COVERAGE. _____________________________________________________________________ 16 SECTION 3 DENTAL BENEFITS ______________________________________________________________________ 16 SECTION 4. VISION CARE. ________________________________________________________________________ 16 SECTION 5. EMPLOYEE ASSISTANCE PLAN _____________________________________________________________ 16 ARTICLE XVII – RETIREMENT MEDICAL PLAN _______________________________________________________ 17 SECTION 1. RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED BEFORE JANUARY 1, 2004: ______________________ 17 SECTION 2. 20-YEAR VESTING FOR RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2004: _ 17 ARTICLE XIII – BASIC LIFE INSURANCE _____________________________________________________________ 17 ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE _____________________________________________________ 17 ARTICLE XX– LONG TERM DISABILITY INSURANCE ___________________________________________________ 18 ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES ____________________________ 18 ARTICLE XXII-WORKERS’ COMPENSATION _________________________________________________________ 18 ARTICLE XXIII- RETIREMENT PENSION PLANS _______________________________________________________ 18 SECTION 1. SAFETY PERS RETIREMENT FORMULA. _______________________________________________________ 18 SECTION 2. STATUS DETERMINATION ________________________________________________________________ 19 SECTION 3. EMPLOYER CONTRIBUTIONS TO 457 PLAN _____________________________________________________ 19 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES ___________________________________ 20 SECTION 1. STATION HOUSE FUND. _________________________________________________________________ 20 SECTION 2. NON-FOOD HOUSE ITEMS _______________________________________________________________ 20 3 SECTION 3. PER DIEM TRAVEL EXPENSES FOR CITY BUSINESS ________________________________________________ 20 SECTION 4. PARKING ___________________________________________________________________________ 20 ARTICLE XXV – WORK ASSIGNMENTS _____________________________________________________________ 20 ARTICLE XXVI - FULL UNDERSTANDING ____________________________________________________________ 20 SECTION 1 __________________________________________________________________________________ 20 SECTION 2. SEVERABILITY. ________________________________________________________________________ 20 SECTION 3. __________________________________________________________________________________ 21 SECTION 4. __________________________________________________________________________________ 21 SECTION 5. __________________________________________________________________________________ 21 ARTICLE XXVII - DURATION _____________________________________________________________________ 21 ARTICLE XXVIII- 48/96 WORK SCHEDULE __________________________________________________________ 21 APPENDIX A__________________________________________________________________________________ 23 4 CITY OF PALO ALTO AND PALO ALTO FIRE CHIEFS’ ASSOCIATION PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and the Palo Alto Fire Chiefs’ Association, hereinafter referred as the "Association", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500- 3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. The City recognizes the Association as the exclusive representative of an employee group consisting solely of the classifications of Battalion Chief 56-hour workweek, and Battalion Chief 40-hour workweek who are regularly employed by the City. ARTICLE II - NO DISCRIMINATION Section 1. The Association and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation or any other basis recognized by federal, state or local law under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or nonmembership in the Association, or participation in the lawful activities of the Association. Section 2. The Association and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Association and to abide by the express provisions of applicable State and local laws. ARTICLE III - PAYROLL DEDUCTIONS Section 1. The City shall deduct Union membership dues assessments and insurances authorized by the Union. This will be accomplished by payroll deductions from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on a Union authorization card. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain all authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to be made. The City will 5 direct employee requests to cancel or change deductions to the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. Section 2. Certification of Union Membership. The Union agrees to provide the City an initial certified list of members and statement that the Association has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made. From that point forward the Union will update the list whenever there are changes. Section 3. Indemnification. The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article. The Union shall comply with all statutory and legal requirements with respect to this article. ARTICLE IV - NO STRIKES Section 1. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Association, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE V - SALARY PROVISIONS Section 1. Salary Range Adjustments. a) The base wage rates of the bargaining unit classifications will be set forth in Appendix A of this MOA. b) Base Salary: Effective the first full pay period following Council adoption, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. c) Market Increase: Effective the first full pay period following Council adoption, a two and a half percent (2.5%) salary increase will be applied to the salary ranges for all represented classes. d) Base Salary: Effective the first full pay period following July 1, 2019, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. e) Base Salary: Effective the first full pay period following July 1, 2020, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. 6 f) Total Compensation and Survey Database: Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). 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. Section 2. EMT Differential. The former EMT differential of 3.0% was rolled into base pay. This one time conversion to base pay, shall constitute the City’s incentive payment for EMT skills. This conversion was cost neutral to the City. Section 3. 40-hour Work Week Assignment Differential. Employees assigned to a 40-hour workweek schedule will be paid a differential of five percent (5%) of base salary in -lieu of holiday pay differential which 56-hour shift Battalion Chiefs receive. Section 4. Out of County Strike Team Pay. A Battalion Chief sent on out of County strike team duty will receive the following compensation only if the City is reimbursed from the state or federal government for the labor costs incurred by the City. Compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity, excluding reimbursements for other labor costs (e.g. workers compensation, administrative expense, etc.). A Battalion Chief on their regular duty shift deployed on an out of County strike team will be eligible for compensation at their normal hourly rate (1.0 hourly rate), assuming a regular 56 hour schedule. A Battalion Chief on non-regular duty shift days deployed on an out of County strike team will be eligible for compensation at a rate of 1.5 of their normal hourly rate. For 40 hour Battalion Chiefs deployed on an out of County strike team, any out of Count y strike team compensation will be calculated at a 56 hour Battalion Chief Schedule hourly rate. Payment for out of county strike team duty will be calculated based on the number of twenty- four hour shifts worked and prorated for any partial shifts. A Personnel Action Form will be completed in a timely manner to process this payment. The amount of the payment will be calculated in a manner described above. If the City is not 7 reimbursed, no payment is due to the employee. If the City is reimbursed in part, a prorated payment will be calculated based on the reimbursement rate. As outlined above, compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity. ARTICLE VI – HOLIDAYS Section 1. Named Holidays. The following holidays are recognized as municipal holidays for pay purposes and non-shift employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veteran’s Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24 or December 31 as provided below First Monday in September Second Monday in October Section 2. 56-Hour Work Week Assignments. One hundred forty nine and one half (149.5) hours is the total amount of holiday hours paid annually to an employee divided by 26 payroll periods which equals 5.75. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in biweekly amount of 5.75 holiday hours. Holiday hours are prorated and accrued based on hours actually worked. If employees elect to be paid for these holiday hours at any time before the scheduled payoff they must have sufficient hours in their holiday account and must complete the Cash-out Request Form. Accrued holiday balances of shift employees will be automatically paid off in the months of June and December. Section 3. 40-Hour Work Week Assignments. Employees assigned to a 40-hour workweek schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. ARTICLE VII - VACATION ACCRUAL Section 1. Vacation will be accrued when an employee is in a pay status and will be credited on a bi-weekly basis. Such accrual balance and credit may not exceed three times the annual rate of accrual. Accrual rates are by work week assignments as indicated in Section 1 and Section 2 below. Section 2. 56-Hour Workweek Assignments. Employees assigned to a 56-hour workweek schedule (24- hour shift) will accrue vacation at the following rate for continuous service 8 performed in a pay status. a) For employees completing less than four (4) years continuous service, the accrual rate shall be five (5) duty shifts per year. b) For employees completing four (4), but less than nine (9) years continuous service, the accrual rate shall be eight (8) duty shifts per year. c) For employees completing nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be ten (10) duty shifts per year. d) For employees completing fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be eleven (11) duty shifts per year. e) For employees completing nineteen (19) or more years continuous service, the accrual rate shall be twelve (12) duty shifts per year. Section 3. 40-Hour Workweek Assignments. Personnel assigned to a 40-hour workweek schedule will accrue vacation at the following rate for continuous service performed in a pay status. a) For employees completing less than four (4) years continuous service, the accrual rate shall be eighty (80) hours per year. b) For employees completing four (4), but less than nine (9) years continuous service, the accrual rate shall be one-hundred twenty (120) hours per year. c) For employees completing nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be one-hundred sixty (160) hours per year. d) For employees completing fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be one-hundred eighty (180) hours vacation leave per year. e) For employees completing nineteen (19) or more years continuous service, the accrual rate shall be two- hundred (200) hours vacation leave per year. ARTICLE VIII - VACATION CASH OUT Section 1. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. 9 Section 2. Cash out Option. a) Once each calendar year, employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. b) Employee must elect the number of vacation hours they will cash -out during the next calendar year, up to the maximum of 120 hours. For the 2012 calendar vacation year, employees will make their election for vacation hours to cash out no later than November 1, 2012. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. c) 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-designates on the election form. d) Employees who do not elect a cash-out amount by November of the prior calendar year 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. e) Employees who elect cash-out amount 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 form 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, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of year, Payroll will automatically cash- out the elected amount in a paycheck issued on or after the payroll date including November 1. ARTICLE IX - MANAGEMENT ANNUAL LEAVE Section 1. Forty (40) hour and fifty-six (56) hour workweek employees not eligible for overtime shall be credited at the beginning of each calendar year with eighty (80) hours of annual leave which may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the calendar year. Unused balances as of the end of the calendar year will be paid in cash, unless a different option as indicated above is elected by the employee. The Management Annual Leave accrual will be changed to an annual accrual rather than fiscal year. Effective July 1, 2012, employees will be credited with forty (40) hours of management 10 annual leave to be used by December 31, 2012 or automatically will be cashed out. Effective January 1, 2012, and every January 1 thereafter, employees will be credited with eighty (80) hours of management annual leave to be used by December 31st or automatically will be cashed out. ARTICLE X - OTHER PAID LEAVES Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at 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 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift for 56-hour shift employees with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother- in-law, father-in-law, step-father, step-mother, step- sister, step-brother, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, 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. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Employees assigned to a 40-hour work week are eligible for leave of absence granted by the Chief with pay for three days in the event of death in the employee’s immediate family which is defined above. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty 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 for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. Section 6. Subpoenas. Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. 11 ARTICLE XI - OTHER LEAVE PROVISIONS Section 1. 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 physician's verification including diagnosis and medical work restriction. Section 2. Other Unpaid Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. 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 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM Section 1. The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide FCA employees the opportunity to donate their accrued vacation time to assist fellow members of FCA either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. 12 Section 2. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). Section 3. A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: a) Voluntary b) Irrevocable c) Confidential, unless disclosure is required by law d) In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). e) The employee shall be required to exhaust all other types of leave to request donated leave f) It is understood that employees seeking or receiving leave under this program will apply for long- term disability benefits for which they may be eligible g) Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverage through the City h) If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required i) The maximum donated time a donee may receive is 12 months (if available). j) Applications to donate leave or receive leave under this Program are made to the Human Resources Department k) The tax treatment of donation or receipt of vacation under this section is governed by the IRS and not the City. Section 4. FCA members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). 13 Section 5. The City reserves the right to modify or terminate this program at any time. Section 6. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non- occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS POTENTIAL BATTALION CHIEF EXTRA SHIFT COVERAGE Battalion Chiefs who back fill for an operations shift (or shifts) for a 56-hour work week Battalion Chief will be provided additional compensation for the extra shift coverage, provided that the extra shift requires working hours beyond regularly scheduled hours. Extra Shift Coverage Eligibility Extra shift coverage pay applies to the level of Battalion Chief only and is not intended as compensation for Battalion Chiefs to backfill a lower classification. A minimum of eight (8) continuous hours of the extra shift coverage must be worked to be eligible for compensation. After the minimum of eight (8) continuous hours is met, the Battalion Chief will be paid for the entire shift worked. Extra Shift Coverage Pay Rate Compensation for the extra shift coverage by a 56-hour or 40-hour Battalion Chief will be paid at the 56-hour straight-time rate of the Battalion Chief performing the back fill. First Rights of Refusal Battalion Chiefs shall be provided first rights of refusal for the extra shift coverage. If no Battalion Chiefs are available to back fill the extra coverage shift, the shift will be assigned to fire personnel at a lower classification in accordance with the standard protocols of the department. Extra Shift Coverage Pay Not PERSable All pay under this extra shift coverage provision will be reported to CALPERS by the City of Palo Alto in a manner that excludes such pay from PERSable income. As such, the extra shift coverage pay is not subject to CALPERS contributions by the employer or employee and is not included as a factor in the employee’s final compensation for pension purposes. Fire Chief Discretion In accordance with management rights provisions, the Fire Chief maintains discretion to approve, modify or disapprove extra shift coverage assignments. 14 FLSA Exempt Status Nothing in the extra shift coverage provision is intended to impact the FLSA-exempt status of Battalion Chiefs. Battalion Chiefs remain FLSA-exempt and are therefore not eligible for overtime pay or compensatory time. ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT Section 1. The benefit provided by this Article is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 that they can designate among the following options: a) Medical Flexible Spending Account (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. This includes prescribed medications and co-payments as specified in applicable federal law. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the limits specified in applicable federal law. 1) Dependent care expenses not reimbursed under this section may be eligible for reimbursement under the City Voluntary Dependent Care FSA program. However, the maximum amount reimbursed under the Voluntary Dependent Care FSA program will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Professional Development Employees may use these funds for professional development purposes on a taxable basis to the extent such expenses (e.g., job-related training and education, seminars, training manuals, etc.) are not paid or reimbursed under any other plan of the City. d) Deferred Compensation. Provides a one-time contribution to the employee’s City- sponsored I.R.C. § 457 Deferred Compensation plan with either ICMA-RE or Mass Mutual, subject to the contribution limitations of applicable law. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a “use –it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees 15 who are part-time or who are in FCA pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro-rated upon separation of employment. ARTICLE XV - PHYSICAL EXAMS Physical fitness medical examinations for all represented employees will be provided in accordance with the Fire Department Physical Fitness Program General Order. ARTICLE XVI - BENEFIT PROGRAMS Section 1. Health Plan - 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: Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 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. *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 Total Maximum City Contribution described above. 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. 16 a. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but 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 reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. Section 2. 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 only by one spouse. Section 3 Dental Benefits a. Level of Benefits. The City will maintain the present level of benefits on the City- sponsored dental program. Maximum benefits per calendar year shall be $2,000. b. Premiums. The City shall pay all premium payments or equivalent self-insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing dental plan. Dependents will include domestic partners, as defined under Article XVII Section 3. c. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. Section 4. Vision Care. The City offers vision care coverage for employees and dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XVII Section 1. Section 5. Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online. 17 ARTICLE XVII – RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to FCA employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement, the City shall provide active unit employees who were hired before January 1, 2004 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 Human Resources Department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XIII – BASIC LIFE INSURANCE The City shall provide a basic life and AD & D insurance plan in an amount equal to the employee's annual base compensation (rounded to the next highest $1,000). ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage. The total amount of life insurance available to the employee is $325,000 and the total amount of AD&D coverage available is $325,000. 18 ARTICLE XX– LONG TERM DISABILITY INSURANCE In lieu of providing long-term disability insurance program to eligible employees, the City shall add $40.00 per month to the base salary of eligible employees. This $40.00 per month shall not be calculated into the labor market salary comparison. ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, life insurance and long term disability plans if these benefits are elected. ARTICLE XXII-WORKERS’ COMPENSATION Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status and ability to return to full or restricted work status. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXIII- RETIREMENT PENSION PLANS Section 1. Safety PERS Retirement Formula. a. Safety Pension Group A: 3%@50 Safety Retirement: The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at Section 2. 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one- year period otherwise designated by the member (Government Code section 20042). b. Safety Pension Group B: 3%@55 Safety Retirement: Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (after referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three -year period otherwise designated by the member (Government Code section 20037). 19 c. Safety Pension Group C: 2.7% at Age 57 Safety Retirement: 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 point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. d. Safety PERS Member Contribution. 1. Employees in all classifications in Pension Groups A and B described above shall pay a total of 9% towards the PERS member contributions by payroll deduction. 2. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. 3. When employees pay their PERS Member Contribution pursuant to section 2a and 2b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). e. Additional Employee PERS contributions: In addition to the PERS member contribution as required under section 2d 1, 2 and 3 above, all employees in pension groups a, b and c shall contribute the additional following contributions: 1. All employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, shall pay an additional 3% towards the Employer share of Pension regardless of pension formula through a CalPERS 20516 contract amendment. 2. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Section 2. Status Determination. An employee’s membership in and designation as Safety for CalPERS pension plan purposes shall be determined based on applicable California law. Section 3. Employer Contributions to 457 Plan Effective the first full pay period following July 1, 2020, the City will contribute the equivalent of 1% of the employee’s pensionable salary into the 457 plan. Eligibility: 1. Employees must be enrolled in an eligible City sponsored 457 plan 2. Employees who reach the maximum as defined by the IRS will not receive additional contributions 3. Employee must be making PERS contributions 20 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES Section 1. Station House Fund. The Station House Fund per year per shift employee shall be $100.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with the following non-food house fund items: TV purchase and repair. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the Station House Fund. Section 3. Per Diem Travel Expenses For City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. Section 4. Parking. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994 may initially receive a parking permit for another downtown lot subject to availability of space at the Civic Center garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXV – WORK ASSIGNMENTS Selection of and assignment to Training Battalion Chief (40-hour workweek) shall be based upon seniority, except where operational needs are determined by the Fire Chief or designee, the Fire Chief or designee reserves the right to assign personnel based on Fire Department needs. For purposes of this article, seniority shall be calculated from date of entry into the Battalion Chief classification. ARTICLE XXVI - FULL UNDERSTANDING Section 1. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Severability. If any of the provision herein contained be rendered or declared invalid by reason of any State or Federal legislation, or by ruling of any court of competent jurisdiction, 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. 21 Section 3. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement be administered and observed in good faith. Section 4. Nothing in this Memorandum of Agreement shall preclude the parties from mutually agreeing to meet and confer on any subject with the scope of representation during the term of this agreement. Section 5. Merit System Rules and Regulations During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XXVII - DURATION This Memorandum of Agreement shall become effective upon signing by the parties hereto, except that those provisions herein that have specific effective dates shall take effect on those dates regardless of signing date, once this Memorandum of Agreement is signed by the parties hereto. This Memorandum of Agreement shall expire June 30, 2018. ARTICLE XXVIII- 48/96 WORK SCHEDULE The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire department policy 205.6 typical workday and 1009.8.1 reporting for Duty-Holidays. 22 EXECUTED: FOR: FOR: FIRE CHIEFS ASSOCIATION CITY OF PALO ALTO James Keene, City Manager Rumi Portillo, Human Resources Director Tori Anthony, Sr. Human Resources Administrator Nicholas Raisch, Manager of Employee Relations and Training Geoffrey Blackshire, Deputy Fire Chief Maria Lagman, Sr. Accountant Maria Patino, Human Resources Representative Ryan Stoddard, President Local 1319 Nate Heydorff, Vice President Local 1319 Sunny Johnson-Gutter, Secretary Local 1319 APPENDIX A Non-Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour w orkw eek 28 $92.26 $15,992 $191,901 015 Battalion Chief EMT 40-hour w orkw eek 28E $94.78 $16,429 $197,142 2019 Battalion Chief EMT, Training 40-hour w orkw eek 28E $94.78 $16,429 $197,142 Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour w orkw eek 030 $62.78 $15,235 $182,815 016 Battalion Chief EMT 56-hour w orkw eek 030E $64.50 $15,652 $187,824 Non-Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour w orkw eek 28 $95.03 $16,472 $197,662 015 Battalion Chief EMT 40-hour w orkw eek 28E $97.63 $16,923 $203,070 2019 Battalion Chief EMT, Training 40-hour w orkw eek 28E $97.63 $16,923 $203,070 Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour w orkw eek 030 $64.67 $15,693 $188,319 016 Battalion Chief EMT 56-hour w orkw eek 030E $66.44 $16,123 $193,473 Non-Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour w orkw eek 28 $97.89 $16,968 $203,611 015 Battalion Chief EMT 40-hour w orkw eek 28E $100.56 $17,430 $209,165 2019 Battalion Chief EMT, Training 40-hour w orkw eek 28E $100.56 $17,430 $209,165 Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour w orkw eek 030 $66.62 $16,166 $193,997 016 Battalion Chief EMT 56-hour w orkw eek 030E $68.44 $16,608 $199,297 First full pay period follow ing July 1, 2020 (3% Increase) Effective the first full pay period upon adoption (5.5% Increase) First full pay period follow ing July 1, 2019 (3% Increase) Memorandum of Agreement City of Palo Alto and Palo Alto Fire Chiefs’ Association July 1, 2014 October 1, 2018– June 30, 202118 1 MEMORANDUM OF AGREEMENT Table of Contents PREAMBLE ____________________________________________________________________________________ 4 ARTICLE I - RECOGNITION _______________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 ARTICLE II - NO DISCRIMINATION _________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 SECTION 2 ___________________________________________________________________________________ 4 ARTICLE III - PAYROLL DEDUCTIONS _______________________________________________________________ 4 SECTION 1 ___________________________________________________________________________________ 4 SECTION 2. CERTIFICATION OF UNION MEMBERSHIP _______________________________________________________ 5 SECTION 3. INDEMNIFICATION ______________________________________________________________________ 6 ARTICLE IV - NO STRIKES ________________________________________________________________________ 6 SECTION 1 ___________________________________________________________________________________ 6 ARTICLE V - SALARY PROVISIONS _________________________________________________________________ 6 SECTION 1. SALARY RANGE ADJUSTMENTS. _____________________________________________________________ 6 SECTION 2. EMT DIFFERENTIAL _____________________________________________________________________ 7 SECTION 3. 40-HOUR WORK WEEK ASSIGNMENT DIFFERENTIAL _______________________________________________ 7 SECTION 4. OUT OF COUNTY STRIKE TEAM PAY. _________________________________________________________ 8 ARTICLE VI – HOLIDAYS _________________________________________________________________________ 8 SECTION 1. NAMED HOLIDAYS. _____________________________________________________________________ 8 SECTION 2. 56-HOUR WORK WEEK ASSIGNMENTS ________________________________________________________ 9 SECTION 3. 40-HOUR WORK WEEK ASSIGNMENTS. _______________________________________________________ 9 ARTICLE VII - VACATION ACCRUAL _________________________________________________________________ 9 SECTION 1. ___________________________________________________________________________________ 9 SECTION 2. 56-HOUR WORKWEEK ASSIGNMENTS ________________________________________________________ 9 SECTION 3. 40-HOUR WORKWEEK ASSIGNMENTS. ________________________________________________________ 9 ARTICLE VIII - VACATION CASH OUT ______________________________________________________________ 10 SECTION 1. LIMITATION ON USE. ___________________________________________________________________ 10 SECTION 2. CASH OUT OPTION. ____________________________________________________________________ 10 ARTICLE IX - MANAGEMENT ANNUAL LEAVE _______________________________________________________ 11 SECTION 1 __________________________________________________________________________________ 11 ARTICLE X - OTHER PAID LEAVES _________________________________________________________________ 11 2 SECTION 1. CITY MANAGER GRANTED LEAVES __________________________________________________________ 11 SECTION 2. COUNCIL GRANTED LEAVE _______________________________________________________________ 11 SECTION 3. EMPLOYEE'S TIME OFF TO VOTE ___________________________________________________________ 11 SECTION 4. LEAVES OF ABSENCE; DEATH IN IMMEDIATE FAMILY ______________________________________________ 12 SECTION 5. JURY DUTY; LEAVE OF ABSENCE ____________________________________________________________ 12 SECTION 6. SUBPOENAS _________________________________________________________________________ 12 ARTICLE XI - OTHER LEAVE PROVISIONS ___________________________________________________________ 12 SECTION 1. DISABILITY. __________________________________________________________________________ 12 SECTION 2. OTHER UNPAID LEAVES. _________________________________________________________________ 12 SECTION 3. ACCRUED VACATION CREDITS. _____________________________________________________________ 12 SECTION 4. APPROVAL OF DEPARTMENT HEAD. _________________________________________________________ 12 SECTION 5. APPROVAL BY CITY MANAGER _____________________________________________________________ 13 SECTION 6. ABSENCE WITHOUT LEAVE. _______________________________________________________________ 13 SECTION 7. LEAVE OF ABSENCE; DEATH OUTSIDE THE IMMEDIATE FAMILY. _______________________________________ 13 SECTION 8. MILITARY LEAVE OF ABSENCE. _____________________________________________________________ 13 ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM _________________________________________ 13 SECTION 1. __________________________________________________________________________________ 13 SECTION 2. __________________________________________________________________________________ 13 SECTION 3. __________________________________________________________________________________ 13 SECTION 4. __________________________________________________________________________________ 14 SECTION 5. __________________________________________________________________________________ 14 SECTION 6. __________________________________________________________________________________ 14 ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS _________________________________ 14 ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT ___________________________________________________ 15 SECTION 1. __________________________________________________________________________________ 15 ARTICLE XV - PHYSICAL EXAMS __________________________________________________________________ 16 ARTICLE XVI - BENEFIT PROGRAMS _______________________________________________________________ 16 SECTION 1. HEALTH PLAN - ACTIVE EMPLOYEES ______________________________________________________ 16 SECTION 2. DUAL COVERAGE. _____________________________________________________________________ 18 SECTION 3 DENTAL BENEFITS ______________________________________________________________________ 18 SECTION 4. VISION CARE. ________________________________________________________________________ 18 SECTION 5. EMPLOYEE ASSISTANCE PLAN _____________________________________________________________ 18 ARTICLE XVII – RETIREMENT MEDICAL PLAN _______________________________________________________ 18 SECTION 1. RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED BEFORE JANUARY 1, 2004: ______________________ 19 SECTION 2. 20-YEAR VESTING FOR RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2004: _ 19 ARTICLE XIII – BASIC LIFE INSURANCE _____________________________________________________________ 19 ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE _____________________________________________________ 19 ARTICLE XX– LONG TERM DISABILITY INSURANCE ___________________________________________________ 20 ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES ____________________________ 20 ARTICLE XXII-WORKERS’ COMPENSATION _________________________________________________________ 20 ARTICLE XXIII- RETIREMENT PENSION PLANS _______________________________________________________ 20 SECTION 1. SAFETY PERS RETIREMENT FORMULA. _______________________________________________________ 20 SECTION 2. STATUS DETERMINATION ________________________________________________________________ 21 3 SECTION 3. EMPLOYER CONTRIBUTIONS TO 457 PLAN _____________________________________________________ 21 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES ___________________________________ 22 SECTION 1. STATION HOUSE FUND. _________________________________________________________________ 22 SECTION 2. NON-FOOD HOUSE ITEMS _______________________________________________________________ 22 SECTION 3. PER DIEM TRAVEL EXPENSES FOR CITY BUSINESS ________________________________________________ 22 SECTION 4. PARKING ___________________________________________________________________________ 22 ARTICLE XXV – WORK ASSIGNMENTS _____________________________________________________________ 22 ARTICLE XXVI - FULL UNDERSTANDING ____________________________________________________________ 22 SECTION 1 __________________________________________________________________________________ 22 SECTION 2. SEVERABILITY. ________________________________________________________________________ 23 SECTION 3. __________________________________________________________________________________ 23 SECTION 4. __________________________________________________________________________________ 23 SECTION 5. __________________________________________________________________________________ 23 ARTICLE XXVII - DURATION _____________________________________________________________________ 23 ARTICLE XXVIII- 48/96 WORK SCHEDULE __________________________________________________________ 23 APPENDIX A__________________________________________________________________________________ 26 4 CITY OF PALO ALTO AND PALO ALTO FIRE CHIEFS’ ASSOCIATION PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and the Palo Alto Fire Chiefs’ Association, hereinafter referred as the "Association", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500- 3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. The City recognizes the Association as the exclusive representative of an employee group consisting solely of the classifications of Battalion Chief 56-hour workweek, and Battalion Chief 40-hour workweek who are regularly employed by the City. ARTICLE II - NO DISCRIMINATION Section 1. The Association and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation or any other basis recognized by federal, state or local law under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or nonmembership in the Association, or participation in the lawful activities of the Association. Section 2. The Association and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Association and to abide by the express provisions of applicable State and local laws. ARTICLE III - PAYROLL DEDUCTIONS Section 1. The City shall deduct Association Union membership dues assessments and insurances authorized by the Union. and other mutually agreed uponThis will be accomplished by payroll deductions from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an Union authorization card acceptable to the Association and the City. 5 The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain all authorizations for dues deduction, 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 Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. All Union members on payroll deduction for payment of Union dues as of 5:00 p.m. on the tenth day following signing of this Memorandum of Agreement must remain on payroll deduction for the life of the Memorandum of Agreement, or so long as they remain members of the representation unit. Union members who establish dues payroll deduction during the term of the Memorandum of Agreement must remain on payroll deduction for the life of the Memorandum of Agreement, or so long as they remain members of the representation unit. Union members on dues payroll deduction may declare their intention to terminate such payroll deduction following expiration of this Memorandum of Agreement during the thirty-day period between sixty and ninety days prior to expiration of the Memorandum of Agreement. Section 2. Certification of Union Membership. The Union agrees to provide the City an initial certified list of members and statement that the Association has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made. From that point forward the Union will update the list whenever there are changes. Agency Shop. Pursuant to legislation enacted by SB 739 and amendment to the Meyers-Milias- Brown Act, the City and the Union agree to abide by the following provisions as they relate to an agency shop and an agency shop election. Agency Shop as defined under Meyers-Milias Brown means “an arrangement that requires an employee, as a condition of continued employment, either to join the recognized employee organization, or to pay the organization a service fee in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization.” The City and the Union agree that an agency shop arrangement between the City and the Union shall be placed in effect upon ratification of this agreement. Any employee who is a member of a bona fide religion, body, or sect that has historically held conscientious objections to joining or financially supporting public employee organizations shall not be required to join or financially support any public employee organization as a condition of employment. The employee may be required, in lieu of periodic dues, initiation fees, or agency fees, to pay sums equal to the dues, initiation fees, or agency fees to a nonreligious, no labor charitable fund exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, chosen by the employee from a list of at least three organizations, or if the memorandum of understanding between the City and the Union fails to designate the funds, then to any such fund chosen by the employee. Proof of the payments shall be made on a monthly basis to the City as a condition of continued exemption from the requirement of financial support to the Union. Covered employees shall execute written authorization for either Union dues deductions, the 6 agency fee, or, if eligible, the charitable contribution. In the absence of a written authorization the City shall deduct the agency fee from the employee’s paycheck. If implemented, an agency shop provision may be rescinded by a majority vote of all the employees in the unit covered by the Memorandum of Understanding pursuant to the Meyers - Milias-Brown Act. The Union shall keep an adequate itemized record of its financial transactions and shall make available annually, to the City and to the employees who are members of the organization, within 60 days after the end of its fiscal year, a detailed written financial report thereof in the form of a balance sheet and an opening statement, certified as to accuracy by its president and treasurer or corresponding principal officer, or a certified public accountant. Section 3. Indemnification. The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this articlethe City’s compliance with the agency shop obligation. The Union shall comply with all statutory and legal requirements with respect to this articleAgency Shop. ARTICLE IV - NO STRIKES Section 1. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Association, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE V - SALARY PROVISIONS Section 1. Salary Range Adjustments. a) The base wage rates of the bargaining unit classifications will be set forth in Appendix XX A of this MOA. b) Base Salary: Effective the first full pay period following Council adoption, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. c) Market Increase: Effective the first full pay period following Council adoption, a two and a half percent (2.5%) salary increase will be applied to the salary ranges for all represented classes. 7 d) Base Salary: Effective the first full pay period following July 1, 2019, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. e) Base Salary: Effective the first full pay period following July 1, 2020, a three percent (3%) salary increase will be applied to the salary ranges for all represented classes. Per parties agreement a 6.22% general salary increase was applied to the salary ranges of all Safety classifications effective June 25, 2016. Effective the first full pay period following City Council approval of this successor MOA, the EMS director classification shall be moved to the Management Group and initial salary placement shall be at $148,990.00. The EMS director shall no longer be a classification in this unit nor entitled to any increases provided in this MOA. All other compensation and benefits including contributions towards pension shall be consistent with the management compensation plan related to miscellaneous classifications. Effective the first full pay period following City Council approval of this successor MOA, a 6.28% general salary increase for safety classifications will be applied to the salary ranges for all classifications in this unit. Effective the pay period including July 1, 2017 a market adjustment of 3% salary increase will be applied to the salary ranges for all classifications in this unit. Total Compensation Market Study. The City will conduct a total compensation survey by November 2017 using the criteria listed below (Total Compensation and Survey Database). Data shall include the contributions in effect up until the November 2017 period. If the City’s survey shows that the Battalion Chief benchmark based on the median is under the market median, the City shall confer a market adjustment to place the benchmark to the median of market, up to a cap of two and a half percent (2.5%), effective the last pay period in December 2017. b)f) Total Compensation and Survey Database: Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). 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. Section 2. EMT Differential. The former EMT differential of 3.0% was rolled into base pay. This one time conversion to base pay, shall constitute the City’s incentive payment for EMT skills. This conversion was cost neutral to the City. Section 3. 40-hour Work Week Assignment Differential. Employees assigned to a 40-hour 8 workweek schedule will be paid a differential of five percent (5%) of base salary in -lieu of holiday pay differential which 56-hour shift Battalion Chiefs receive. Section 4. Out of County Strike Team Pay. A Battalion Chief sent on out of County strike team duty will receive the following compensation only if the City is reimbursed from the state or federal government for the labor costs incurred by the City. Compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity, excluding reimbursements for other labor costs (e.g. workers compensation, administrative expense, etc.). A Battalion Chief on their regular duty shift deployed on an out of County strike team will be eligible for compensation at their normal hourly rate (1.0 hourly rate), assuming a regular 56 hour schedule. A Battalion Chief on non-regular duty shift days deployed on an out of County strike team will be eligible for compensation at a rate of 1.5 of their normal hourly rate. For 40 hour Battalion Chiefs deployed on an out of County strike team, any out of County strike team compensation will be calculated at a 56 hour Battalion Chief Schedule hourly rate. Payment for out of county strike team duty will be calculated based on the number of twenty- four hour shifts worked and prorated for any partial shifts. A Personnel Action Form will be completed in a timely manner to process this payment. The amount of the payment will be calculated in a manner described above. If the City is not reimbursed, no payment is due to the employee. If the City is reimbursed in part, a prorated payment will be calculated based on the reimbursement rate. As outlined above, compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity. ARTICLE VI – HOLIDAYS Section 1. Named Holidays. The following holidays are recognized as municipal holidays for pay purposes and non-shift employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veteran’s Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24 or December 31 as provided below First Monday in September 9 Second Monday in October Section 2. 56-Hour Work Week Assignments. One hundred forty nine and one half (149.5) hours is the total amount of holiday hours paid annually to an employee divided by 26 payroll periods which equals 5.75. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in biweekly amount of 5.75 holiday h ours. Holiday hours are prorated and accrued based on hours actually worked. If employees elect to be paid for these holiday hours at any time before the scheduled payoff they must have sufficient hours in their holiday account and must complete the Cash-out Request Form. Accrued holiday balances of shift employees will be automatically paid off in the months of June and December. Section 3. 40-Hour Work Week Assignments. Employees assigned to a 40-hour workweek schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. ARTICLE VII - VACATION ACCRUAL Section 1. Vacation will be accrued when an employee is in a pay status and will be credited on a bi-weekly basis. Such accrual balance and credit may not exceed three times the annual rate of accrual. Accrual rates are by work week assignments as indicated in Section 1 and Section 2 below. Section 2. 56-Hour Workweek Assignments. Employees assigned to a 56-hour workweek schedule (24- hour shift) will accrue vacation at the following rate for continuous service performed in a pay status. a) For employees completing less than four (4) years continuous service, the accrual rate shall be five (5) duty shifts per year. b) For employees completing four (4), but less than nine (9) years continuous service, the accrual rate shall be eight (8) duty shifts per year. c) For employees completing nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be ten (10) duty shifts per year. d) For employees completing fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be eleven (11) duty shifts per year. e) For employees completing nineteen (19) or more years continuous service, the accrual rate shall be twelve (12) duty shifts per year. Section 3. 40-Hour Workweek Assignments. Personnel assigned to a 40-hour workweek schedule will accrue vacation at the following rate for continuous service performed in a pay 10 status. a) For employees completing less than four (4) years continuous service, the accrual rate shall be eighty (80) hours per year. b) For employees completing four (4), but less than nine (9) years continuous service, the accrual rate shall be one-hundred twenty (120) hours per year. c) For employees completing nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be one-hundred sixty (160) hours per year. d) For employees completing fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be one-hundred eighty (180) hours vacation leave per year. e) For employees completing nineteen (19) or more years continuous service, the accrual rate shall be two- hundred (200) hours vacation leave per year. ARTICLE VIII - VACATION CASH OUT Section 1. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 2. Cash out Option. a) Once each calendar year, Eemployees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. b) Employee must elect the number of vacation hours they will cash -out during the next calendar year, up to the maximum of 120 hours. For the 2012 calendar vacation year, employees will make their election for vacation hours to cash out no later than November 1, 2012. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. c) 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-designates on the election form. 11 d) Employees who do not elect a cash-out amount by November of the prior calendar year 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. e) Employees who elect cash-out amount 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 form 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, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of year, Payroll will automatically cash- out the elected amount in a paycheck issued on or after the payroll date including November 1. ARTICLE IX - MANAGEMENT ANNUAL LEAVE Section 1. Forty (40) hour and fifty-six (56) hour workweek employees not eligible for overtime shall be credited at the beginning of each calendar year with eighty (80) hours of annual leave which may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the calendar year. Unused balances as of the end of the calendar year will be paid in cash, unless a different option as indicated above is elected by the employee. The Management Annual Leave accrual will be changed to an annual accrual rather than fiscal year. Effective July 1, 2012, employees will be credited with forty (40) hours of management annual leave to be used by December 31, 2012 or automatically will be cashed out. Effective January 1, 2012, and every January 1 thereafter, employees will be credited with eighty (80) hours of management annual leave to be used by December 31st or automatically will be cashed out. ARTICLE X - OTHER PAID LEAVES Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or direct 12 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 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift for 56-hour shift employees with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother- in-law, father-in-law, step-father, step-mother, step- sister, step-brother, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, 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. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Employees assigned to a 40-hour work week are eligible for leave of absence granted by the Chief with pay for three days in the event of death in the employee’s immediate family which is defined above. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty 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 for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. Section 6. Subpoenas. Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. ARTICLE XI - OTHER LEAVE PROVISIONS Section 1. 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 physician's verification including diagnosis and medical work restriction. Section 2. Other Unpaid Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. 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 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. 13 Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM Section 1. The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide FCA employees the opportunity to donate their accrued vacation time to assist fellow members of FCA either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. Section 2. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). Section 3. A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: a) Voluntary b) Irrevocable c) Confidential, unless disclosure is required by law d) In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). e) The employee shall be required to exhaust all other types of leave to request donated leave 14 f) It is understood that employees seeking or receiving leave under this program will apply for long- term disability benefits for which they may be eligible g) Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverage through the City h) If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required i) The maximum donated time a donee may receive is 12 months (if available). j) Applications to donate leave or receive leave under this Program are made to the Human Resources Department k) The tax treatment of donation or receipt of vacation under this section is governed by the IRS and not the City. Section 4. FCA members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). Section 5. The City reserves the right to modify or terminate this program at any time. Section 6. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non- occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS POTENTIAL BATTALION CHIEF EXTRA SHIFT COVERAGE Battalion Chiefs who back fill for an operations shift (or shifts) for a 56-hour work week Battalion Chief will be provided additional compensation for the extra shift coverage, provided that the extra shift requires working hours beyond regularly scheduled hours. 15 Extra Shift Coverage Eligibility Extra shift coverage pay applies to the level of Battalion Chief only and is not intended as compensation for Battalion Chiefs to backfill a lower classification. A minimum of eight (8) continuous hours of the extra shift coverage must be worked to be eligible for compensation. After the minimum of eight (8) continuous hours is met, the Battalion Chief will be paid for the entire shift worked. Extra Shift Coverage Pay Rate Compensation for the extra shift coverage by a 56-hour or 40-hour Battalion Chief will be paid at the 56-hour straight-time rate of the Battalion Chief performing the back fill. First Rights of Refusal Battalion Chiefs shall be provided first rights of refusal for the extra shift coverage. If no Battalion Chiefs are available to back fill the extra coverage shift, the shift will be assigned to fire personnel at a lower classification in accordance with the standard protocols of the department. Extra Shift Coverage Pay Not PERSable All pay under this extra shift coverage provision will be reported to CALPERS by the City of Palo Alto in a manner that excludes such pay from PERSable income. As such, the extra shift coverage pay is not subject to CALPERS contributions by the employer or employee and is not included as a factor in the employee’s final compensation for pension purposes. Fire Chief Discretion In accordance with management rights provisions, the Fire Chief maintains discretion to approve, modify or disapprove extra shift coverage assignments. FLSA Exempt Status Nothing in the extra shift coverage provision is intended to impact the FLSA-exempt status of Battalion Chiefs. Battalion Chiefs remain FLSA-exempt and are therefore not eligible for overtime pay or compensatory time. ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT Section 1. The benefit provided by this Article is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 that they can designate among the following options: a) Medical Flexible Spending Account (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. This includes prescribed medications and co-payments as 16 specified in applicable federal law. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the limits specified in applicable federal law. 1) Dependent care expenses not reimbursed under this section may be eligible for reimbursement under the City Voluntary Dependent Care FSA program. However, the maximum amount reimbursed under the Voluntary Dependent Care FSA program will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Professional Development Employees may use these funds for professional development purposes on a taxable basis to the extent such expenses (e.g., job-related training and education, seminars, training manuals, etc.) are not paid or reimbursed under any other plan of the City. d) Deferred Compensation. Provides a one-time contribution to the employee’s City- sponsored I.R.C. § 457 Deferred Compensation plan with either ICMA-RE or Mass Mutual, subject to the contribution limitations of applicable law. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a “use –it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees who are part-time or who are in FCA pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro-rated upon separation of employment. ARTICLE XV - PHYSICAL EXAMS Physical fitness medical examinations for all represented employees will be provided in accordance with the Fire Department Physical Fitness Program General Order. ARTICLE XVI - BENEFIT PROGRAMS Section 1. Health Plan - 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: 17 Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 Medical Premium Category PEMHCA contribution* Up to a Total Maximum City Contribution Effective January 1, 2017 as soon as administratively possible Up to a Total Maximum City Contribution Effective January 1, 2018 Employee only $128.00 $773.00 $804.00 Employee plus one $128.00 $1,544.00 $1,606.00 Employee Family $128.00 $2,008.00 $2,088.00 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 as of 2017. 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 described” columns above. 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. a. Active employee domestic partners whose domestic partnership is registered with the 18 State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but 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 reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. Section 2. 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 only by one spouse. Section 3 Dental Benefits a. Level of Benefits. The City will maintain the present level of benefits on the City- sponsored dental program. Maximum benefits per calendar year shall be $2,000. b. Premiums. The City shall pay all premium payments or equivalent self-insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing dental plan. Dependents will include domestic partners, as defined under Article XVII Section 3. c. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. Section 4. Vision Care. The City offers vision care coverage for employees and dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XVII Section 1. Section 5. Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online. ARTICLE XVII – RETIREMENT MEDICAL PLAN 19 Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to FCA employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement, the City shall provide active unit employees who were hired before January 1, 2004 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 Human Resources Department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XIII – BASIC LIFE INSURANCE The City shall provide a basic life and AD & D insurance plan in an amount equal to the employee's annual base compensation (rounded to the next highest $1,000). ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage. The total amount of life insurance available to the employee is $325,000 and the total amount of AD&D coverage available is $325,000. 20 ARTICLE XX– LONG TERM DISABILITY INSURANCE In lieu of providing long-term disability insurance program to eligible employees, the City shall add $40.00 per month to the base salary of eligible employees. This $40.00 per month shall not be calculated into the labor market salary comparison. ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, life insurance and long term disability plans if these benefits are elected. ARTICLE XXII-WORKERS’ COMPENSATION Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status and ability to return to full or restricted work status. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXIII- RETIREMENT PENSION PLANS Section 1. Safety PERS Retirement Formula. a. Safety Pension Group A: 3%@50 Safety Retirement: The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at Section 2. 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one- year period otherwise designated by the member (Government Code section 20042). b. Safety Pension Group B: 3%@55 Safety Retirement: Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (after referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three -year period otherwise designated by the member (Government Code section 20037). 21 c. Safety Pension Group C: 2.7% at Age 57 Safety Retirement: 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 point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. d. Safety PERS Member Contribution. 1. Effective the first full pay period after Union ratification and City Council adoption of this successor MOA, Eemployees in all classifications in Pension Groups A and B described above shall pay an additional 3.9% for a total of 9% towards the PERS member contributions by payroll deduction. 2. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. 3. When employees pay their PERS Member Contribution pursuant to section 2a and 2b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). e. Additional Employee PERS contributions: In addition to the PERS member contribution as required under section 2d 1, 2 and 3 above, all employees in pension groups a, b and c shall contribute the additional following contributions: 1. Effective as soon as administrative possible but no sooner than July 1, 2017, aAll employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, shall pay an additional 3% towards the Employer share of Pension regardless of pension formula through a CalPERS 20516 contract amendment. 2. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Section 2. Status Determination. An employee’s membership in and designation as Safety for CalPERS pension plan purposes shall be determined based on applicable California law. Section 3. Employer Contributions to 457 Plan Effective the first full pay period following July 1, 2020, the City will contribute the equivalent of 1% of the employee’s pensionable salary into the 457 plan. Eligibility: 1. Employees must be enrolled in an eligible City sponsored 457 plan 2. Employees who reach the maximum as defined by the IRS will not receive 22 additional contributions 3. Employee must be making PERS contributions ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES Section 1. Station House Fund. The Station House Fund per year per shift employee shall be $10048.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with the following non-food house fund items: TV purchase and repair, the San Jose Mercury News, and the San Francisco Chronicle to be selected on an annual basis. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the Station House Fund. Section 3. Per Diem Travel Expenses For City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. Section 4. Parking. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994 may initially receive a parking permit for another downtown lot subject to availability of space at the Civic Center garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXV– RESIDENCY For purposes of emergency response availability, represented employees shall live within 90 miles travel distance of the city limits of Palo Alto. ARTICLE XXV – WORK ASSIGNMENTS Selection of and assignment to Training Battalion Chief (40-hour workweek) shall be based upon seniority, except where operational needs are determined by the Fire Chief or designee, the Fire Chief or designee reserves the right to assign personnel based on Fire Department needs. For purposes of this article, seniority shall be calculated from date of entry into the Battalion Chief classification. ARTICLE XXVI - FULL UNDERSTANDING Section 1. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. 23 Section 2. Severability. If any of the provision herein contained be rendered or declared invalid by reason of any State or Federal legislation, or by ruling of any court of competent jurisdiction, 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 3. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement be administered and observed in good faith. Section 4. Nothing in this Memorandum of Agreement shall preclude the parties from mutually agreeing to meet and confer on any subject with the scope of representation during the term of this agreement. Section 5. Merit System Rules and Regulations During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XXVII - DURATION This Memorandum of Agreement shall become effective upon signing by the parties hereto, except that those provisions herein that have specific effective dates shall take effect on those dates regardless of signing date, once this Memorandum of Agreement is signed by the parties hereto. This Memorandum of Agreement shall expire June 30, 2018. ARTICLE XXVIII- 48/96 PILOT PROGRAMWORK SCHEDULE The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire department policy 205.6 typical workday and 1009.8.1 reporting for Duty-Holidays. 24 The City of Palo Alto (City) and the Fire Chiefs’ Association agree to have the City evaluate changing the Palo Alto Fire Department’s work schedule for 56- hour personnel from its current schedule to a “48/96” work schedule with the goal of implementing a pilot schedule change as soon as administratively possible, if the parties are in agreement and required administrative and technology changes can be implemented by this date. Upon ratification of a new Memorandum of Agreement, a Labor Management Committee (LMC), including representatives from the Union, Fire Management, the City Manager’s Office, Human Resources, and the Administrative Services Department, will meet to design and evaluate the possible implementation of a “48/96” work schedule that is FLSA compliant, cost neutral, meets the needs of the City and does not compromise the effectiveness of fire services. The goal will be for the Committee to complete preparation for the evaluation as soon as administratively possible. If a schedule can be designed that is FLSA compliant, cost neutral and does not compromise service to the community, the parties agree to move forward with a pilot work schedule change. The City will begin making required administrative and technology changes in order to implement the pilot “48/96” work schedule as soon as administratively possible. The actual date of implementation will be dependent upon the City’s ability to modify payroll, staff scheduling and any other related systems to support the new schedule. The initial “Pilot Program” is planned to run for the term of the MOA, but may be terminated at any time if is determined to have a negative impact on costs or workforce effectiveness. The Pilot will conclude at the end of the MOA unless the parties mutually agree to extend the Pilot as the standard 56 -hour work schedule. EXECUTED: FOR: FOR: FIRE CHIEFS ASSOCIATION CITY OF PALO ALTO James Keene, City Manager Rumi Portillo, Human Resources Director 25 Tori Anthony, Sr. Human Resources Administrator Nicholas Raisch, Manager of Employee Relations and Training Geoffrey Blackshire, Deputy Fire Chief Maria Lagman, Sr. Accountant Maria Patino, Human Resources Representative Ryan Stoddard, President Local 1319 Nate Heydorff, Vice President Local 1319 Sunny Johnson-Gutter, Secretary Local 1319 APPENDIX A Non-Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour w orkw eek 28 $92.26 $15,992 $191,901 015 Battalion Chief EMT 40-hour w orkw eek 28E $94.78 $16,429 $197,142 2019 Battalion Chief EMT, Training 40-hour w orkw eek 28E $94.78 $16,429 $197,142 Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour w orkw eek 030 $62.78 $15,235 $182,815 016 Battalion Chief EMT 56-hour w orkw eek 030E $64.50 $15,652 $187,824 Non-Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour w orkw eek 28 $95.03 $16,472 $197,662 015 Battalion Chief EMT 40-hour w orkw eek 28E $97.63 $16,923 $203,070 2019 Battalion Chief EMT, Training 40-hour w orkw eek 28E $97.63 $16,923 $203,070 Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour w orkw eek 030 $64.67 $15,693 $188,319 016 Battalion Chief EMT 56-hour w orkw eek 030E $66.44 $16,123 $193,473 Non-Shift Job Code Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 Battalion Chief 40-hour w orkw eek 28 $97.89 $16,968 $203,611 015 Battalion Chief EMT 40-hour w orkw eek 28E $100.56 $17,430 $209,165 2019 Battalion Chief EMT, Training 40-hour w orkw eek 28E $100.56 $17,430 $209,165 Shift Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116 Battalion Chief 56-hour w orkw eek 030 $66.62 $16,166 $193,997 016 Battalion Chief EMT 56-hour w orkw eek 030E $68.44 $16,608 $199,297 First full pay period follow ing July 1, 2020 (3% Increase) Effective the first full pay period upon adoption (5.5% Increase) First full pay period follow ing July 1, 2019 (3% Increase) Memorandum of Agreement City of Palo Alto and Palo Alto Police Management Association (PAPMA) October 1, 2018 – June 30, 2021 City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 2 of 24 TABLE OF CONTENTS ARTICLE I – PREAMBLE ................................................................................................................... 4 Section 1 – Recognition. .................................................................................................................... 4 Section 2 – Non-Discrimination. ........................................................................................................ 4 ARTICLE II – COMPENSATION ........................................................................................................ 4 Section 3 – Salary. .............................................................................................................................. 4 Section 4 – Working Out of Class Pay. .............................................................................................. 4 Section 5 – Night Shift Differential. .................................................................................................. 5 ARTICLE III – HEALTH CARE BENEFITS ....................................................................................... 5 Section 6 – Active Employee Health Plans. ....................................................................................... 5 Section 7 – Dental Benefits. ............................................................................................................... 5 Section 8 – Vision Care. .................................................................................................................... 6 Section 9 – Basic Life Insurance. ...................................................................................................... 6 Section 10 – Supplemental Life And AD&D Insurance. ................................................................... 6 Section 11 – Effective date of Coverage for New Employees. .......................................................... 6 ARTICLE IV – OTHER BENEFITS ..................................................................................................... 6 Section 12 – Holiday Compensation. ................................................................................................ 6 Section 13 – Vacation. ....................................................................................................................... 6 Section 14 – Long Term Disability. ................................................................................................... 8 Section 15 – Dependent Care Assistance Program. .......................................................................... 8 Section 16 – Medical Flexible Spending Program. ............................................................................ 8 Section 17 – Employee Assistance Plan. ............................................................................................ 8 Section 18 – Commute Incentives and Parking. ................................................................................. 8 Reopener. ............................................................................................................................................ 9 ARTICLE V –RETIREMENT ............................................................................................................... 9 Section 19 – Retirement Benefits. ...................................................................................................... 9 Section 20 – Retirement Medical Plan. ........................................................................................... 10 Section 21 – ICMA - Retirement Health Savings Plan. .................................................................. 10 Section 22 – Deferred Compensation Program. .............................................................................. 11 ARTICLE VI – MANAGEMENT BENEFIT PROGRAM ................................................................. 11 Section 23 – Professional Development Reimbursement. ............................................................... 11 Section 24 – Physical Examinations. .............................................................................................. 11 Section 25 – Excess Benefit. ............................................................................................................ 12 Section 26 – Management Annual Leave. ....................................................................................... 13 City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 3 of 24 ARTICLE VII – OPERATIONAL ISSUES ....................................................................................... 13 Section 27 – Management Assignments. ......................................................................................... 13 Section 28 – Basic Work Schedules. ............................................................................................... 14 Section 29 – On Duty Workouts. ..................................................................................................... 14 Section 30 – Take Home Emergency Response Vehicles. ............................................................... 14 Section 31 – Modified Duty Assignments. ...................................................................................... 14 Section 32 – Meal Allowance. ........................................................................................................ 14 Section 33 – Uniforms. ..................................................................................................................... 14 ARTICLE VIII – ASSOCIATION AGREEMENTS ........................................................................... 15 Section 34 – Association Security. .................................................................................................. 15 Section 35 – Association Representative Access to Work Locations. ............................................. 15 Section 36 – Release Time. .............................................................................................................. 15 Section 37 – Use of City Facilities for Association Business. ......................................................... 16 Section 38 – Payroll Deduction. ....................................................................................................... 16 ARTICLE IX – LEAVE PROGRAMS ................................................................................................ 16 Section 39 – Sick Leave. .................................................................................................................. 16 Section 40 – Voluntary Catastrophic Leave Program. ..................................................................... 17 Section 41 – Leave of Absence With Pay. ...................................................................................... 17 Section 42 – Leave of Absence Without Pay. .................................................................................. 18 ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS .................................................................. 19 Section 43 – Probationary Period. .................................................................................................... 19 Section 44 – Disciplinary Action and Unsatisfactory Work or Conduct. ........................................ 20 Section 45 – Grievance Procedure. .................................................................................................. 20 Section 46 – No Strikes. ................................................................................................................... 22 Section 47 – Reduction in Workforce. ............................................................................................ 22 ARTICLE XI – LOOKING FORWARD ............................................................................................. 22 Section 48 – Full Understanding. ..................................................................................................... 22 Section 49 – Legal Compliance/Severability. .................................................................................. 22 Section 50 – Duration. ...................................................................................................................... 22 APPENDIX A-1 ................................................................................................................................... 23 City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 4 of 24 2018 - 2021 MEMORANDUM OF AGREEMENT City of Palo Alto and Palo Alto Police Managers' Association ARTICLE I – PREAMBLE This Memorandum of Agreement is pursuant to and subject to Sections 3500 -3510 of the Government Code of the State of California, the Charter of the City of Palo Alto, and the City of Palo Alto Merit System Rules and Regulations. This Memorandum of Agreement made and entered into at Palo Alto, California, by and between the City of Palo Alto, a municipal corporation (hereinafter referred to as "City") and the Palo Alto Police Managers' Association (hereinafter referred to as "Association"), is intended to d efine agreements reached during the meet and confer process concerning wages, hours, working conditions, and other terms and conditions of employment for the r epresented group of employees. Section 1 – Recognition. On October 29, 2009, the City of Palo Alto certified the Palo Alto Police Managers' Association (Association) as a bargaining unit within the City. The City recognizes the Association as the exclusive repre sentative of an employee group consisting solely of Police Lieutenants and Police Captain s who are regularly employed by the City and others who might be amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. Section 2 – Non-Discrimination. The City and the Union agree that there shall be no discrimination of any kind because of age (over 40), race, creed, color, religion national origin, ancestry), veterans status, physical or mental disability, marital status, sexual orientation, sex (sexual, gender based or gender identity, pregnancy/childbirth), medical condition (cancer related and genetic characteristics), or on any other basis prohibited by applicable federal and State law against any employee or applicant for employment. The Association shall cooperate with the City, to the extent required by federal and State laws and regulations, in furthering the objective of Equal Employment Opportunities, as defined by Federal and State regulations. ARTICLE II – COMPENSATION Section 3 – Salary. Effective the first full pay period after ratification by the Association and adoption by the City Council, the base salary rates and ranges for classifications covered by this bargaining unit shall be increased as set forth in Appendix A-1. Additionally, the base salary rates and ranges for classifications covered by this bargaining unit shall be increased on the first full pay period following July 1, 2019 and July 1, 2020 as set forth in Appendix A-1. Actual salary within the range is determined by experience and performance, as determined by the Chief of Police. Section 4 – Working Out of Class Pay. Lieutenants or Captains fulfilling the role of an acting captain, assistant chief, or chief for individual shifts and/or a number of hours within a shift, shall not receive City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 5 of 24 additional compensation. Periodically working in this capacity shall be deemed a basic duty within an employee's job description. Lieutenants and Captains working out of class for a period of four or more consecutive shifts shall be compensated at the start of the pay period with premium pay determined by the Chief of Police or his or her designee up to 10% of base pay. In accordance with Government Code 20480, an employee assigned to work in an out-of-class appointment may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 5 – Night Shift Differential. Night shift differential shall be paid at the rate of 5% to all personnel for all hours worked between 6:00 p.m. and 8:00 a.m. ARTICLE III – HEALTH CARE BENEFITS Section 6 – Active Employee Health Plans. 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: Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 *Total City contribution includes both PEMHCA minimum contributions pursuant to Government Code section 22892 and an additional City contribution necessary to pay the cost of medical premiums up to the amount listed in the "Total maximum City contribution" columns above. Section 7 – Dental Benefits. a) The City will maintain the present level of benefits on the City -sponsored dental program for current employees and their dependents, except that the maximum benefits per calendar year shall be $2,000 effective in 1988. Dental Coverage shall include composite (tooth colored) fillings for all teeth. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 6 of 24 Effective July I, 2007, the City will provide 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their depe ndents. b) Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below. c) During the term of the agreement, the City and the Union will work together to review benefit provisions of the City's self-funded dental program. The purpose of this review is to contain benefit cost increases. Joint recommendations will be prepared for discussion during successor agreement negotiations. d) Dental implants in conjunction with one or more missing natural teeth, and removal of dental implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). Section 8 – Vision Care. The City will offer vision care coverage for employees and dependents. Coverage is equivalent to $20 deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below. Section 9 – Basic Life Insurance. The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee's annual basic pay (rounded to the next highest $1,000). Section 10 – Supplemental Life And AD&D Insurance. An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage equal to one -or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000. Section 11 – Effective date of Coverage for New Employees. For newly hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, and life insurance plans if these benefits are elected. ARTICLE IV – OTHER BENEFITS Section 12 – Holiday Compensation. Police Managers will receive the twelve (12) paid City holidays outlined in the City of Palo Alto Merit Rules. Section 13 – Vacation. a) Vacation Accrual. Vacation will be accrued when an employee is in pay status and will be credited on a bi -weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 7 of 24 1. Less than nine (9) years - For employees completing less than nine (9) years continuous service; one hundred twenty (120) hours vacation leave per year. The City Manager may adjust the annual vacation accrual of employees hired on or after July 1, 2001 to provide up to forty (40) additional hours (i.e. to a maximum annual accrual of one hundred sixty (160) hours) for service with a prior employer. 2. Nine (9), but less than fourteen (14) years - For employees completing nine (9), but not more than fourteen (14) years continuous service; one hundred sixty (160) hours vacation leave per year. 3. Fourteen (14), but less than nineteen (19) years - For employees completing fourteen (14), but not more than nineteen (19) years continuous service; one hundred eighty (180) hours vacation leave per year. 4. Nineteen (19) or more years - For employees completing nineteen (19) or more years continuous service; two hundred (200) hours vacation leave per year. b) Vacation Use. Vacation use by police managers will be subject to approval by the Chief of Police or his/her designee. All reasonable efforts will be made to approve vacation requests while maintaining appropriate oversight of public safety operations. Employees shall complete six months continuous service before using accrued vacation leave. c) Vacation Cashout. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours from a minimum of eight (8) hours to a maximum of one hundred ( 120) hours, provided that the employee has taken at least eighty (80) hours of vacation in the previous twelve (12) months. Effective for the 2012 tax year and each subsequent year, employees must pre -elect an irrevocable number of vacation hours they will cash out during the upcoming year, up to a maximum of one hundred twenty (120) hours, prior to the start of the calendar year. Employees who do not pre- designate or elect to cash out hours will be deemed to have waived the right to cash out any vacation leave in the following year. 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. For employees who have not requested payment of pre-designated cash out amounts by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after November 1. d) Vacation Pay at Termination. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 8 of 24 Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Payments for accrued vacation shall be at the employee's current rate of pay. e) Vacation Benefits 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 the employee's estate within thirty days. This proration will be computed at the last basic rate of pay. Section 14 – Long Term Disability. The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of $10,000 per month. The City shall pay the premium for the first $6,000 of base monthly salary. For employees whose base monthly salary exceeds $6,000, the employee shall pay the cost of the required premium based upon their monthly salary between $6,000 and $15,000. Section 15 – Dependent Care Assistance Program. The City will provide a Dependent Care Assistance Program for employees according to the provisions of the Federal Economic Recovery Act of 1981, Code Sections 125 and 129. The program will be available to represent ation unit employees beginning with pay period number 1 of 1992, and remain in effect subject to a reasonable minimum participation level and availability of third -party administrative services at a reasonable cost. Section 16 – Medical Flexible Spending Program. The City will provide a Medical Flexible Spending Program for Association members allowing them to use pre-tax deferrals for reimbursement of excess or uncovered medical, dental and vision expenses. The plan will follo w existing plan guidelines and conform to all applicable laws and regulations. Section 17 – Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. Section 18 – Commute Incentives and Parking. 1. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. Employees hired after June 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. 2. Alternative Commute Incentives: Employees who qualify may voluntarily elect one commute incentives, including but not limited to the following options, for those using an eligible commute alternative on 60% or more of their scheduled work days per month: a. Public Transit and Vanpool. The City provides tax-free commute incentives up to the current IRS limit, as may be amended from time to time, (currently $125/month) are available through the Commuter Check Direct (CCD) website for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. Administration of the Commuter Check benefit shall be subject to the rules and regulations of the third- party administrator. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 9 of 24 b. 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, to any City of Palo Alto employee. c. Bicycle. The City will provide employees with a tax-free incentive of $20 per month to eligible employees who ride a bicycle to work. d. Carpool. The City will provide with a taxable incentive of $30 per month to each eligible employee in a carpool with two or more licensed drivers. e. Walk. The City will provide employees with a taxable incentive of $20 per month to eligible employees who walk to work. Reopener. It is the City's interest to reduce single occupancy vehicle trips to the extent possible in order to address current challenges. During the term of this agreement, upon written request by the City, the parties shall meet and confer through the impasse process if necessary on changes to the City's commute incentive and parking program adopted by the City Council. ARTICLE V –RETIREMENT Section 19 – Retirement Benefits. A. "3%@50" Safety Retirement (Employees hired on or before December 7, 2012) For employees hired by the City of Palo Alto on or before December 7, 2012, the California Public Employees' Retirement System (CalPERS) retirement formula benefit known as the "3 percent at 50 (3%@50)," per California Government Code section 21362.2, shall continue in effect with the final salary determination for such employees of the "single highest one (1) year period" per California Government Code section 20042. All unit members in the 3% @ 50 safety retirement plan shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law. B. Second Tier "3% at 55" Safety Retirement ("Classic" Employees) For those employees hired on or after December 8, 2012 through December 31, 2012 or are classic members as defined by CalPERS, the CalPERS retirement formula benefit known as the "3 percent at 55 (3%@55)," per Government Code section 21363.1, with the final salary determination for such employees of the "three (3) highest consecutive years" based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member per Government Code section 20037. All unit members in the second tier shall pay the full 9% CalPERS member contribution. This contribution is pre -tax to the extent allowable by law. C. Third Tier "2.7% at 57” Safety Retirement (“New” PEPRA Employees) For those employees hired on or after January 1, 2013, the CalPERS retirement formula benefit known as "2.7 percent at 57 (2.7% at 57)," with the final salary determination for such employees of the "three (3) highest consecutive years." The initial contribution rate will be at least 50% of the normal cost rate at retirement as determined by CalPERS. This contribution is pre -tax to the extent allowable by law. D. Additional Employee PERS Contributions City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 10 of 24 Effective the pay period that includes June 30, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay a3% towards the Employer share of Pension. Effective the pay period that includes June 30, 2021, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Such contributions under CalPERS 20516 will be provided on a pre-tax basis to the extent allowable by law. Section 20 – Retirement Medical Plan. A. Retiree Medical Coverage for Unit Employees Hired Before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees hired before January 1, 2004 as outlined below. For employees who retire before June 1, 2012, the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to PMA employees among the existing array of plans. For employees who retire on or after June 1, 2012, The City contribution toward s retiree medical shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement (Scheduled for January 11, 2016), the City shall provide active unit employees who were hired before January 1, 2004 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. B. 20-Year Vesting Schedule for Retiree Medical Coverage for Unit Employees Hired on or After January 1, 2004 and employees who chose to opt -in to retiree health benefits provided under California Government Code section 22893 as outlined above: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January I, 2004 and employees who opt -in as outlined above. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. Section 21 – ICMA - Retirement Health Savings Plan. The City provides an ICMA retirement health savings plan for Association members. The ICMA retirement health savings plan is subject to applicable IRS rules and plan guidelines as well as any other applicable laws. Each Association member shall make a pre-tax contribution to the plan as follows: 1. Each member shall contribute 1% of their base salary bi-weekly into the plan. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 11 of 24 2. Failure by each member to contribute will deem the health savings plan out of compliance with IRS and plan guidelines. 3. The administrative fee shall be paid by the Association member. The manner and amount of contributions may be periodically modified by agreement of both parties. Section 22 – Deferred Compensation Program. The City will provide a Deferred Compensation Program for employees according to the provisions of the plans and applicable IRS guidelines. ARTICLE VI – MANAGEMENT BENEFIT PROGRAM Section 23 – Professional Development Reimbursement. The purpose of this program is to provide employees with resources to improve and supplement their job and professional skills. Reimbursement for authorized self-improvement activities may be granted to each Association employee up to a maximum of five hundred dollars ($500) per fiscal year. A departmental training fund of one thousand dollars per employee ($1,000) will be established for subject matter, leadership or other training that the Department Director identifies as a need for employees within that Department. The following items are eligible for reimbursement: a) Civic and professional association memberships b) Conference participation and travel expenses, which must occur within the compensation plan period. c) Educational programs, books and videos, and tuition reimbursement designed to maintain or improve the employee's skills in performing his or her job or future job opportunities, should support the City's mission or be necessary to meet the educational requirements for qualification for employment. Permissible educational expenses are refresher courses, courses dealing with current developments, academic or vocational courses, as well as the travel expenses associated with the courses as defined by the City's travel expense report from the Policy & Procedures Manual Section 1-02 ASD. d) Professional and trade journal subscriptions not to exceed 12 months. Approval will be at discretion of department head and signature is required on reimbursement form. Amounts under this professional development program will be pro-rated in the first year of employment or promotion. Section 24 – Physical Examinations. All management and professional employees are eligible to receive an annual physical examination as follows: a) Use the periodic health exam benefit as provided under the PERS Health Plan option you have selected. Each of the PERS Health Plans provides for a periodic physical examination. The examination must be performed by your primary care physician – unless he/she refers you to another physician. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 12 of 24 b) The types of tests and the frequency of the tests cannot exceed AMA guidelines. The guidelines are a suggested minimum based on research studies concerning preventative care. The judgment of your physician is the final determinant for your care. c) Any additional necessary asymptomatic tests that are required by your physician that are not covered by your health plan will be reimbursed by the City. Any symptomatic tests will be covered under your PERS Health Plan. The Reimbursement for Periodic Physical Exam Form is available on the Human Resources Intranet site. This benefit will not be pro-rated. Section 25 – Excess Benefit. This benefit is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 annually that they can designate among the following options: a) Medical Flexible Spending Account (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. This includes prescribed medications and co -payments as well as over-the-counter drugs, including: antacids, allergy medicines, pain relievers and cold medicines. However, nonprescription dietary supplements (e.g. vitamins, etc.) toiletries (e.g. toothpaste), cosmetics (e.g. face cream), and items used for cosmetic purposes (e.g. Rogaine) are not acceptable. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the following limits: Dependent care expenses will be reimbursed only to the extent that the amount of such expenses reimbur sed under this Management Benefit Program, when added to the amount (if any) of annual dependent care expenses that the participant has elected under the City's Flexible Benefits Plan, do not exceed the maximum permitted under the DCAP. 1) The annual amount submitted for reimbursement cannot exceed the income of the lower-paid spouse. 2) The expenses must be employment-related expenses for the care of one or more dependents who are under 13 years of age and entitled to a dependent deduction under Internal Revenue Code section 151 (e) or a dependent who is physically or mentally incapable of caring for himself or herself. 3) The payments cannot be made to a child under 19 years of age or to a person claimed as a dependent. 4) If the services are provided by a dependent care center, the center must comply with all state and local laws and must provide care for more than six individuals (other than a resident of the facility). 5) Dependent care expenses not submitted under this section are eligible under the City Dependent Care Assistance Plan (DCAP). However, the maximum amount reimbursed under DCAP will be reduced by any amount reimbursed under the Excess Benefit Plan. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 13 of 24 c) Non-taxable Professional Development Spending Account. Provides reimbursement for Non-Taxable professional development expenses (e.g., job-related training and education, seminars, training manuals, etc.) to the extent they are not paid or reimbursed under any other plan of the City. d) Gym or Health Club Memberships. Provides reimbursement for annual or monthly memberships, including personal trainers. Reimbursement of this expense is taxable to the employee. e) Deferred Compensation. The $2,500 excess benefit provided in this section made on a one-time contribution basis on election by the employee towards the employee's City-sponsored 457 Deferred Compensation plan with either ICMA-RC or the Hartford. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a "use -it-or-lose-it" basis. This means that any amounts designated and not used by the end of the calendar year ( or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro -rata basis for employees who are part- time or who are in a management or professional pay status for less than the ful l fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro- rated upon separation of employment. Section 26 – Management Annual Leave. At the beginning of each calendar year regular management employees will be credited with 80 hours of management annual leave. This leave is granted in recognition of the extra hours management employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject t o vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is taken under this provision, I 0-hour shift workers will receive one shift off for each 8 hours charged; 24 -hour shift workers will receive one-half shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal year; employees who have used more than the pro -rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the calendar year will be paid in cash unless a different option as indicated above is elected by the employee. ARTICLE VII – OPERATIONAL ISSUES Section 27 – Management Assignments. The Chief of Police or his/her designee shall have the authority to make management assignments at his or her discretion. Where possible, these assignments should take into account the needs of the organization, development of the employee and individual employee desires. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 14 of 24 Section 28 – Basic Work Schedules. Generally, police managers will be expected to work flexible schedules and reasonably adjust their hours to oversee their employee g roups, manage 24/7 law enforcement operations, perform routine work, complete daily assignments, and occasionally attend meetings or other events outside their normal work shifts. Basic work schedules will be the 4/10 schedule. Section 29 – On Duty Workouts. Police managers who complete the yearly Wellness Program requirements may participate in an on-duty workout for a reasonable period as determined by the Chief, as long as it does not interfere with the performance of the employee's job duties, for which the employee will remain accountable. Applicable guidelines and conditions are outlined in the Department's Wellness Program Policy which the City may change from time to time. Section 30 – Take Home Emergency Response Vehicles. Subject to approval by the City Manager and the Police Chief, Police Captains will continue the current take home emergency response vehicle program which allows for the immediate and emergent response to public safety incidents involving the City. The specific use and restrictions for driving these vehicles shall adhere to the guidelines outlined in the then current version of City Policy and Procedure 4-01. Section 31 – Modified Duty Assignments. In cases of non-work-related injury, illness or pregnancy, an employee, upon approval of the department head, City Risk Manager and the employee's doctor, may return to work or continue work with doctor-approved limited or alternative duty pursuant to Policy & Procedure 2-04. Approval for reasonable accommodation such as limited/alternative duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. The City doctor may be consulted in determining work limitations. Any assignment to a limited/alternative duty will be on a temporary basis. Section 32 – Meal Allowance. Police managers attending night meetings will be eligible for meal re- imbursement under the guidelines set forth in the then current version of City Policy and Procedure No. 1-02. Section 33 – Uniforms. a) The City will supply complete uniforms to all sworn personnel. All uniform items are the property of the City. One complete uniform consists of: (I) three pair of trousers, (2) three short-sleeved shirts with patches and zippers if desired, (3) three long-sleeved shirts with patches and zippers if desired, (4) three cotton or two synthetic fiber turtleneck shirts, (5) hat, (6) duty jacket with patches, (7) dress jacket with patches, (8) necktie, and (9) rain gear. b) At the time of initial employment, every sworn employee will be issued one complete uniform. Uniform items will be replaced on an as-needed basis subject to verification by management. c) The City shall provide uniform cleaning for sworn representation unit personnel. d) Personnel are accountable for all uniform items issued to them. If a particular item is lost or damaged due to employee negligence, the employee will be required to reimburse the City for value of the item(s) lost or damaged. e) The City shall reimburse employees for the full cost of job-related boots upon City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 15 of 24 verification of such purchase by the employees. The City will make the reimbursement only upon proof that the previous boots have become unserviceable due to wear or damage. (Job-related boots shall mean well-constructed, high topped boots that provide full ankle and foot support, which are selected from list agreed to by M anagement and the Association.) Employees are responsible for the full cost of any low-top, black shoes that are worn with the uniform. ARTICLE VIII – ASSOCIATION AGREEMENTS Section 34 – Association Security. a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Unit and give the employee a current copy of the Memorandum of Agreement. b) If there is no disruption of work, members of the Association Board of Directors may use a reasonable amount of on-duty time without loss of pay to meet with Management specifically related to representation of employees. Such release time must be cleared in advance by the Chief (or his/her Designee) who is a member of management. For purposes of this section, representation shall include: (i) Meetings with represented employees or management related to a grievance or disciplinary action, including investigation and preparation time. (ii) A meeting with management related to benefits, working conditions or other terms and conditions of employment. Section 35 – Association Representative Access to Work Locations. Employee and non-employee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum of Understanding, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs. Advance arrangement shall normally include not less than one hour's notice in the case of an employee Association representative, two hours in the c ase of non- employee Association representatives. Non-employee representatives must also notify the Human Resources Department Manager (or designee) of the time, date and location of the representative's intended visit. Section 36 – Release Time. The Association President or his or her-designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary issues, and training for association members. Release time shall normally be approved in advance by the department head and must not detract from the performance of the representative's City job duties, for which he or she will remain accountable. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 16 of 24 Section 37 – Use of City Facilities for Association Business. Any use of City facilities shall be governed by the then current version of City Policy and Procedure No. 4 -07. Section 38 – Payroll Deduction. The City shall deduct Association membership dues and any other mutually agreed upon payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the City and the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. ARTICLE IX – LEAVE PROGRAMS Section 39 – Sick Leave. a) Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Subsection (i), personal business chargeable to sick leave. Up to 8 days sick leave per year may be used for illness in the immediate family (spouse, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee). b) Eligibility. Regular and part-time employees shall be eligible to accrue and use sick leave. c) Accrual. Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi -weekly pay period. d) Accumulation. Sick leave accrual accumulation shall be limited to 1,000 hours with no payoff provision for unused balance at termination. e) Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight hours or shift equivalent 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. 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. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 17 of 24 When an employee finds it necessary to be absent for any reason, he/she should contact the Department as soon as possible, but no later than the start of the scheduled shift on the first working day of absence, and shall regularly report by the start of each subse quent shift unless hospitalized. Such reports may be subject to written documentation if there is reasonable evidence that sick leave abuse has occurred. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Documentation may also be required if there is a reasonable basis to believe that the employee may not be medically fit to return to work. f) Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under the long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. g) Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. h) Personal Business Leave Chargeable to Sick Leave. Employees may use up to twenty (20) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of management. Section 40 – Voluntary Catastrophic Leave Program. If permitted by agreement between the City and the Palo Alto Police Officers' Association (P.O.A.) members of the Palo Alto Police Managers' Association representation unit may participate in the "Voluntary Leave Program" applicable to the P.O.A. representation unit to assist in maintaining the pay of an employee who is eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- P.O.A. agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law). Otherwise, said program shall be governed by the conditions and restrictions set forth in the City-P.O.A. Memorandum of Agreement. Section 41 – Leave of Absence With Pay. The City Manager may grant a regular employee under his/her control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he/she deems adequate and in the best interest of the City. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. a) Subpoenas: leave of absence. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 18 of 24 Regular employees who are subpoenaed in their capacity as a City employee to appear as witnesses on behalf of the State of California or any of its agencies may be granted leaves of absence with pay from their assigned duties until released. The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his or her services as a witness. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. b) Employee's time off to vote. Pursuant to Elections Code section 14000, when the employee is unable to vote outside of the employee's work hours, up to two (2) hours' time off with pay to vote at any general or direct primary election shall be granted at the beginning or end of the employee's scheduled shift, whichever allows the most free time for voting and the least time off from the regular working shift. Such time off with pay to vote shall only be granted if the employee provides at least two working days' notice that time off for voting is desired, unless the nature of the employee's schedule prevents the employee from anticipating the need for time off to vote. c) Leave of absence; death in family. Leave of absence with pay of three (3) days shall be granted an employee by the head of his or her department in the event of death in the employee's family, but shall not exceed a total of six (6) paid work days per calendar year. For purposes of this section, family is defined as wife, husband, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, father, step-father, father-in- law, mother, step-mother, mother-in-law, brother, step-brother, brother-in-law, 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. Requests for leave in excess of three (3) days shall be subject to the 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 off. d) Jury duty: leave of absence. Employees required to report for jury duty 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 for such duties other than mileage or subsistence allowances w ithin thirty days from the termination of his/her jury service. Section 42 – Leave of Absence 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) Other leaves. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 19 of 24 Leaves of absence without pay is at the discretion and approval of management. Unauthorized leave of absence/job abandonment may result in disciplinary action up to and including termination of employment. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued paid vacation and sick leave in a manner consistent with state and federal law. All leaves without pay must be approved in advance and in writing by the department to be effective. c) Approval of department head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. d) Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. e) Absence without leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. f) Leave of absence; death outside the immediate family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Subsections (b), (c), (d) and (e). g) Military leave of absence. State and federal law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS Section 43 – Probationary Period. a) All original appointments to full-time or part-time regular municipal service positions shall be tentative and subject to a probationary period of twelve months for management employees b) The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing the employees 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. c) A report of performance of each probationary employee shall be made by the department head and shown to the probationary employee on or before expiration of the probationary period. d) During the probationary period a new employee may be suspended, demoted or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 20 of 24 Section 44 – Disciplinary Action and Unsatisfactory Work or Conduct. Disciplinary action shall be governed by the City’s Merit Rules and Regulation, Palo Alto Police Department Policy 340 on Conduct, the Palo Alto Police Department Internal Affairs and Complaint Investigations Guidelines, and the Police Officer Procedural Bill of Rights Act. Section 45 – Grievance Procedure. a) The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or Association grievances, as provided for below. In presenting a grievance, the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. b) Definition. A Grievance is: 1. An unresolved complaint or dispute regarding the application or interpretation of this Memorandum of Agreement 2. An appeal from a disciplinary action of any kind against an employee covered by this Memorandum of Agreement. c) Access to the Grievance Procedure. Except as otherwise provided in the Memorandum of Agreement for probationary employees, all employees represented by the Association may file and process a grievance. Such aggrieved employees may be represented by the Association or may represent themselves in preparing and presenting their grievance at any level of review. The Association may file a grievance when an Association right under this Memorandum of Agreement not directly related to an individual employee becomes subject to dispute. d) Conduct of Grievance Procedure. 1. The time limits specified in this Article may be extended by writte n mutual agreement of the aggrieved employee or the Association and the reviewer concerned. 2. If a decision is not rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. 3. The grievance will be considered settled if the decision at any step is not appealed within the specified time limit. 4. The aggrieved employee or the Association and Human Resources Director may mutually agree in writing to waive any step of the grievance procedure. 5. Written grievances shall be submitted on forms provided by the City or on forms that are mutually agreeable to the City and the Association. 6. Any retroactive monetary arbitrator award or settlement by mutual agreement shall not extend more than ninety (90) days before the date that the grievance was filed in writing at Step 2 below. The following steps shall apply: City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 21 of 24 Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with his or her immediate supervisor by the end of the tenth wo rking day following the discovery of or the incident upon which the grievance is based. Every attempt will be made to s ettle the issue at this level. (Note: For purposes of time limits, the working days are considered to be Monday through Friday, exclusive of City holidays.) Appeals of disciplinary action should be processed through the procedures outlined in Step 2-3 of the Grievance Procedure. Step II. If the grievance is not resolved through the informal discussion, the employee will reduce the grievance to writing and submit copies to the department head or his/her designee within ten (10) working days of the discussion with the immediate supervisor. The department head or his/her designee shall have ten (10) working days from the receipt of a written grievance to review the matter and prepare a written statement. Step III. If the grievance is not resolved at Step II, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or thro ugh appeal to final and binding grievance arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with As sociation approval. All Step III appeals must be filed in writing at the Human Resources Department Office within ten (10) working days of receipt of the Step II appeal. If the aggrieved employee 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. The City Manager shall render a written decision to all parties directly involved within ten working days after receiving the employee's appeal. If the aggrieved employee elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. 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. 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 neces sary to the determination of grievances appealed to the arbitrator. The arbitrator shall be without power to make any decision: 1) Regarding matters of interest. 2) Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. 3) Granting any wage increases or decreases. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 22 of 24 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. If 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 this section and wit hout regard to the merits of the grievance. 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 Association. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Association. Section 46 – No Strikes. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of serv ices, concerted abuse of leave of absence provisions, work stoppage or work slowdown of any kind. No employee shall refuse to cross any picket line in the conduct of Police Department business, nor shall the Association, its representatives, or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. Section 47 – Reduction in Workforce. In the event of reductions in force, they shall be accomplished wherever possible through attrition. If the work force is reduced in the Association, the City will give an employee impacted by a potential lay off 30 days' notice prior to any reduction in force. ARTICLE XI – LOOKING FORWARD Section 48 – Full Understanding. This Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. The parties agree that they shall each carry out their responsibilities under the MOA in good faith. Section 49 – Legal Compliance/Severability. If any provision herein contained is rendered or declared invalid by reason of existing State or Federal legislation or by reason of State Supreme Court or U. S. Supreme Court ruling, 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 50 – Duration. The term of this Agreement shall commence on October 1, 2018 and shall expire on June 30, 2021. City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 23 of 24 FOR: FOR: Palo Alto Police Management Association City of Palo Alto APPENDIX A-1 James Reifschneider, Lieutenant James Keene, City Manager April Wagner, Lieutenant Rumi Portillo, Human Resources Director Andrew Binder, Captain Robert Jonsen, Police Chief Nicholas Raisch, Manager of Employee and Labor Relation Tori Anthony, Senior HR Administrator City of Palo Alto and PAPMA October 1, 2018 – June 30, 2021 Page 24 of 24 Effective the first full pay period following adoption (4% Increase - LT and 1% Increase - CPT) Job Code FLSA Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 74.15$ 92.68$ 111.22$ 16,065.00$ 192,774.00$ 149 Exempt Police Liet-Adv 086 66.24$ 82.80$ 99.36$ 14,352.00$ 172,224.00$ Effecitve the first full pay period following July 1, 2019 - 4% Increase Job Code FLSA Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 77.12$ 96.39$ 115.67$ 16,708.00$ 200,491.00$ 149 Exempt Police Liet-Adv 086 68.90$ 86.12$ 103.35$ 14,928.00$ 179,130.00$ Effective the first full pay period following July 1, 2020 - 4% Increase Job Code FLSA Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 80.20$ 100.25$ 120.30$ 17,377.00$ 208,520.00$ 149 Exempt Police Liet-Adv 086 71.66$ 89.57$ 107.49$ 15,526.00$ 186,306.00$ City of Palo Alto Police Management Association Salary Schedule Memorandum of Agreement City of Palo Alto and Palo Alto Police Management Association (PAPMA) January October 1, 2016 2018 – June 30, 202117 City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 2 of 24 TABLE OF CONTENTS ARTICLE I – PREAMBLE .................................................................................................................... 4 Section 1 – Recognition. .............................................................................................................. 4 Section 2 – Non-Discrimination. .................................................................................................. 4 ARTICLE II – COMPENSATION .......................................................................................................... 4 Section 3 – Salary. ....................................................................................................................... 4 Section 4 – Working Out of Class Pay. ......................................................................................... 5 Section 5 – Night Shift Differential. ............................................................................................. 5 ARTICLE III – HEALTH CARE BENEFITS.............................................................................................. 5 Section 6 – Active Employee Health Plans. ................................................................................. 5 Section 7 – Dental Benefits. ...................................................................................................... 65 Section 8 – Vision Care. .............................................................................................................. 6 Section 9 – Basic Life Insurance. ................................................................................................. 6 Section 10 – Supplemental Life And AD&D Insurance. ............................................................. 76 Section 11 – Effective date of Coverage for New Employees. .................................................. 76 ARTICLE IV – OTHER BENEFITS ...................................................................................................... 76 Section 12 – Holiday Compensation. ........................................................................................ 76 Section 13 – Vacation. .............................................................................................................. 76 Section 14 – Long Term Disability. .............................................................................................. 8 Section 15 – Dependent Care Assistance Program. ................................................................... 8 Section 16 – Medical Flexible Spending Program. ...................................................................... 8 Section 17 – Employee Assistance Plan. ................................................................................... 98 Section 18 – Commute Incentives and Parking. ........................................................................ 98 Reopener. .................................................................................................................................... 9 ARTICLE V –RETIREMENT ................................................................................................................. 9 Section 19 – Retirement Benefits. ............................................................................................... 9 Section 20 – Retirement Medical Plan. .................................................................................... 10 Section 21 – ICMA - Retirement Health Savings Plan. ............................................................. 11 Section 22 – Deferred Compensation Program. ...................................................................... 11 ARTICLE VI – MANAGEMENT BENEFIT PROGRAM ........................................................................ 11 Section 23 – Professional Development Reimbursement. ....................................................... 11 Section 24 – Physical Examinations. ......................................................................................... 12 Section 25 – Excess Benefit. ...................................................................................................... 12 City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 3 of 24 Section 26 – Management Annual Leave. ............................................................................ 1413 ARTICLE VII – OPERATIONAL ISSUES ............................................................................................. 14 Section 27 – Management Assignments. .................................................................................. 14 Section 28 – Basic Work Schedules. ......................................................................................... 14 Section 29 – On Duty Workouts. ............................................................................................... 14 Section 30 – Take Home Emergency Response Vehicles. ......................................................... 14 Section 31 – Modified Duty Assignments. ............................................................................ 1514 Section 32 – Meal Allowance. .............................................................................................. 1514 Section 33 – Uniforms. ...................................................................................................... 151415 ARTICLE VIII – ASSOCIATION AGREEMENTS .................................................................................. 15 Section 34 – Association Security. ............................................................................................ 15 Section 35 – Association Representative Access to Work Locations. ............................... 161516 Section 36 – Release Time. ........................................................................................................ 16 Section 37 – Use of City Facilities for Association Business. ..................................................... 16 Section 38 – Payroll Deduction. ................................................................................................ 16 ARTICLE IX – LEAVE PROGRAMS .................................................................................................... 16 Section 39 – Sick Leave. ............................................................................................................. 16 Section 40 – Voluntary Catastrophic Leave Program. ............................................................... 18 Section 41 – Leave of Absence With Pay.................................................................................. 18 Section 42 – Leave of Absence Without Pay. ............................................................................ 19 ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS ........................................................................... 20 Section 43 – Probationary Period. ............................................................................................. 20 Section 44 – Disciplinary Action and Unsatisfactory Work or Conduct. ................................... 20 Section 45 – Grievance Procedure. ........................................................................................... 20 Section 46 – No Strikes. ......................................................................................................... 2322 Section 47 – Reduction in Workforce. ...................................................................................... 23 ARTICLE XI – LOOKING FORWARD ................................................................................................. 23 Section 48 – Full Understanding. .............................................................................................. 23 Section 49 – Legal Compliance/Severability. ............................................................................ 23 Section 50 – Duration. ............................................................................................................... 23 APPENDIX A-1 ................................................................................................................................ 24 City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 4 of 24 2016 -– 20172018 - 2021 MEMORANDUM OF AGREEMENT City of Palo Alto and Palo Alto Police Managers' Association ARTICLE I – PREAMBLE This Memorandum of Agreement is pursuant to and subject to Sections 3500 -3510 of the Government Code of the State of California, the Charter of the City of Palo Alto, and the City of Palo Alto Merit System Rules and Regulations. This Memorandum of Agreement made and entered into at Palo Alto, California, by and between the City of Palo Alto, a municipal corporation (hereinafter referred to as "City") and the Palo Alto Police Managers' Association (hereinafter referred to as "Association"), is intend ed to define agreements reached during the meet and confer process concerning wages, hours, working conditions, and other terms and conditions of employment for the r epresented group of employees. Section 1 – Recognition. On October 29, 2009, the City of Palo Alto certified the Palo Alto Police Managers' Association (Association) as a bargaining unit within the City. The City recognizes the Association as the exclusive repre sentative of an employee group consisting solely of Police Lieutenants and Police Captains who are regularly employed by the City and others who might be amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. Section 2 – Non-Discrimination. The City and the Union agree that there shall be no discrimination of any kind because of age (over 40), race, creed, color, religion national origin, ancestry), veterans status, physical or mental disability, marital status, sexual orientation, sex (sexual, gender based or gender identity, pregnancy/childbirth), medical condition (cancer related and genetic characteristics), or on any other basis prohibited by applicable federal and State law against any employee or applicant for employment. The Association shall cooperate with the City, to the extent required by federal and State laws and regulations, in furthering the objective of Equal Employment Opportunities, as defined by Federal and State regulations. ARTICLE II – COMPENSATION Section 3 – Salary. Effective the first full pay period after ratification by the Association and adoption by the City Council approval of the Side Letter, the base salary rates and ranges for classifications covered by this bargaining unit shall be increased as set forth in Appendix A-1 to reflect salary increases and market adjustments. If the parties reach agreement on an MOA that is approved by the City Council and ratified by the Union by June 30, 2016, theAdditionally, the base salary rates and ranges for classifications covered by this bargaining unit shall be increased on the first full pay period following June 30July 1, 20196 City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 5 of 24 and June 30July 1, 202017 as set forth in Appendix A-1. Actual salary within the range is determined by experience and performance, as determined by the Chief of Police.If an MOA is not approved and ratified by June 30, 2016, salary increases and market adjustments shall be 0% for both J une 30, 2016 and June 30, 2017. Section 4 – Working Out of Class Pay. Lieutenants or Captains fulfilling the role of an acting captain, assistant chief, or chief for individual shifts and/or a number of hours within a shift, shall not receive additional compensation. Periodically working in this capacit y shall be deemed a basic duty within an employee's job description. Lieutenants and Captains working out of class for a period of one four or more consecutive pay periodsshifts shall be compensated at the start of the second consecutive pay period with premium pay determined by the Chief of Police or his or her designee up to 10% of base pay. In accordance with Government Code 20480, an employee assigned to work in an out-of-class appointment may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 5 – Night Shift Differential. Night shift differential shall be paid at the rate of 5% to all personnel for all hours worked between 6:00 p.m. and 8:00 a.m. ARTICLE III – HEALTH CARE BENEFITS Section 6 – Active Employee Health Plans. 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: Medical Premium Category PEMHCA Contribution* Total Maximum City Contribution (inclusive of PEMHCA contribution) effective from time of ratification through December 31, 2018 Total Maximum City Contribution (inclusive of PEMHCA contribution) effective January 1, 2019 Employee Only $133.00 $804 $840 Employee plus one $133.00 $1606 $1680 Employee Family $133.00 $2088 $2180 City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 6 of 24 Medical Premium Category PEMHCA contribution* Additional City Contribution 2016 Total maximum City contribution* (effective pay period including January 11, 2016) Total maximum City contribution* (effective pay period including January 1, 2017) Employee only $125.00 $618.00 $743.00 $773.00 Employee + 1 $125.00 $1,360.00 $1,485.00 $1,544.00 Employee + 2 or more $125.00 $1,806.00 $1,931.00 $2,008.00 *Total City contribution includes both PEMHCA minimum contributions pursuant to Government Code section 22892 and an additional City contribution necessary to pay the cost of medical premiums up to the amount listed in the "Total maximum City contribution" columns above. This contribution amount is based on half of the eight percent historical trend. Section 7 – Dental Benefits. a) The City will maintain the present level of benefits on the City -sponsored dental program for current employees and their dependents, except that the maximum benefits per calendar year shall be $2,000 effective in 1988. Dental Coverage shall include composite (tooth colored) fillings for all teeth. Effective July I, 2007, the City will provide 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. b) Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below. c) During the term of the agreement, the City and the Union will work together to review benefit provisions of the City's self-funded dental program. The purpose of this review is to contain benefit cost increases. Joint recommendations will be prepared for discussion during successor agreement negotiations. d) Dental implants in conjunction with one or more missing natural teeth, and removal of dental implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). Section 8 – Vision Care. The City will offer vision care coverage for employees and dependents. Coverage is equivalent to $20 deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below. Section 9 – Basic Life Insurance. The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee's annual basic pay (rounded to the next highest $1,000). City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 7 of 24 Section 10 – Supplemental Life And AD&D Insurance. An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage equal to one-or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000. Section 11 – Effective date of Coverage for New Employees. For newly hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, and life insurance plans if these benefits are elected. ARTICLE IV – OTHER BENEFITS Section 12 – Holiday Compensation. Police Managers will receive the twelve (12) paid City holidays outlined in the City of Palo Alto Merit Rules. Section 13 – Vacation. a) Vacation Accrual. Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: 1. Less than nine (9) years - For employees completing less than nine (9) years continuous service; one hundred twenty (120) hours vacation leave per year. The City Manager may adjust the annual vacation accrual of employees hired on or after July 1, 2001 to provide up to forty (40) additional hours (i.e. to a maximum annual accrual of one hundred sixty (160) hours) for service with a prior employer. 2. Nine (9), but less than fourteen (14) years - For employees completing nine (9), but not more than fourteen (14) years continuous service; one hundred sixty (160) hours vacation leave per year. 3. Fourteen (14), but less than nineteen (19) years - For employees completing fourteen (14), but not more than nineteen (19) years continuous service; one hundred eighty (180) hours vacation leave per year. 4. Nineteen (19) or more years - For employees completing nineteen (19) or more years continuous service; two hundred (200) hours vacation leave per year. b) Vacation Use. Vacation use by police managers will be subject to approval by the Chief of Police or his/her designee. All reasonable efforts will be made to approve vacation requests while maintaining appropriate oversight of public safety operations. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 8 of 24 Employees shall complete six months continuous service before using accrued vacation leave. c) Vacation Cashout. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours from a minimum of eight (8) hours to a maximum of one hundred ( 120) hours, provided that the employee has taken at least eighty (80) hours of vacation in the previous twelve (12) months. Effective for the 2012 tax year and each subsequent year, employees must pre -elect an irrevocable number of vacation hours they will cash out during the upcoming year, up to a maximum of one hundred twenty (120) hours, prior to the start of the calendar year. Employees who do not pre - designate or elect to cash out hours will be deemed to have waived the right to cash out any vacation leave in the following year. 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. For employees who have not requested payment of pre-designated cash out amounts by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after November 1. d) Vacation Pay at Termination. Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Payments for accrued vacation shall be at the employee's current rate of pay. e) Vacation Benefits 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 the employee's estate within thirty days. This proration will be computed at the last basic rate of pay. Section 14 – Long Term Disability. The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of $10,000 per month. The City shall pay the premium for the first $6,000 of base monthly salary. For employees whose base monthly salary exceeds $6,000, the employee shall pay the cost of the required premium b ased upon their monthly salary between $6,000 and $15,000. Section 15 – Dependent Care Assistance Program. The City will provide a Dependent Care Assistance Program for employees according to the provisions of the Federal Economic Recovery Act of 1981, Code Sections 125 and 129. The program will be available to representation unit employees beginning with pay period number 1 of 1992, and remain in effect subject to a reasonable minimum participation level and availability of third -party administrative services at a reasonable cost. Section 16 – Medical Flexible Spending Program. The City will provide a Medical Flexible Spending Program for Association members allowing them to use pre-tax deferrals for reimbursement of excess or uncovered medical, dental and vision expenses. The plan will follow existing plan guidelines and conform to all applicable laws and regulations. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 9 of 24 Section 17 – Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. Section 18 – Commute Incentives and Parking. 1. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. Employees hired after June 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. 2. Alternative Commute Incentives: Employees who qualify may voluntarily elect one commute incentives, including but not limited to the following options, for those using an eligible commute alternative on 60% or more of their scheduled work days per month: a. Public Transit and Vanpool. The City provides tax-free commute incentives up to the current IRS limit, as may be amended from time to time, (currently $125/month) are available through the Commuter Check Direct (CCD) website for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. Administration of the Commuter Check benefit shall be subject to the rules and regulations of the third- party administrator. b. 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, to any City of Palo Alto employee. c. Bicycle. The City will provide employees with a tax-free incentive of $20 per month to eligible employees who ride a bicycle to work. d. Carpool. The City will provide with a taxable incentive of $30 per month to each eligible employee in a carpool with two or more licensed drivers. e. Walk. The City will provide employees with a taxable incentive of $20 per month to eligible employees who walk to work. Reopener. It is the City's interest to reduce single occupancy vehicle trips to the extent possible in order to address current challenges. During the term of this agreement, upon written request by the City, the parties shall meet and confer through the impasse process if necessary on changes to the City's commute incentive and parking program adopted by the City Council. ARTICLE V –RETIREMENT Section 19 – Retirement Benefits. A. "3%@50" Safety Retirement (Employees hired on or before December 7, 2012) For employees hired by the City of Palo Alto on or before December 7, 2012, the California Public Employees' Retirement System (CalPERS) retirement formula benefit known as the "3 percent at 50 (3%@50)," per California Government Code section 21362.2, shall continue in effect with the final salary determination for such employees of the "single highest one (1) year period" per California Government Code section 20042. All unit members in the 3% @ 50 safety retirement plan shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 10 of 24 B. Second Tier "3% at 55" Safety Retirement ("Classic" Employees) For those employees hired on or after December 8, 2012 through December 31, 2012 or are classic members as defined by CalPERS, the CalPERS retirement formula benefit known as the "3 percent at 55 (3%@55)," per Government Code section 21363.1, with the final salary determination for such employees of the "three (3) highest consecutive years" based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three -year period otherwise designated by the member per Government Code section 20037. All unit members in the second tier shall pay the full 9% CalPERS member contribution. This contribution is pre -tax to the extent allowable by law. C. Third Tier "2.7% at 57” Safety Retirement (“New” PEPRA Employees) For those employees hired on or after January 1, 2013, the CalPERS retirement formula benefit known as "2.7 percent at 57 (2.7% at 57)," with the final salary determination for such employees of the "three (3) highest consecutive years." The initial contribution rate will be at least 50% of the normal cost rate at retirement as determined by CalPERS. This contribution is pre -tax to the extent allowable by law. D. Additional Employee PERS Contributions Effective as soon as administratively possible all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required per CalPERS 20516 contract amendment, pay an additional 1 % towards the Employer share of Pension. Effective the pay period that includes June 30, 2016, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional I% towards the Employer share of Pension for a total of 2%. Effective the pay period that includes June 30, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 3I% towards the Employer share of Pension for a total of 3%. Effective the pay period that includes June 30, 2021, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Such contributions under CalPERS 20516 will be provided on a pre-tax basis to the extent allowable by law. Section 20 – Retirement Medical Plan. A. Retiree Medical Coverage for Unit Employees Hired Before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees hired before January 1, 2004 as outlined below. For employees who retire before June 1, 2012, the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to PMA employees among the existing array of plans. For employees who retire on or after June 1, 2012, The City contribution toward s retiree medical shall be the same contribution amount it makes for active City employees. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 11 of 24 Effective upon ratification and adoption of this Agreement (Scheduled for January 11, 2016), the City shall provide active unit employees who were hired before January 1, 2004 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. B. 20-Year Vesting Schedule for Retiree Medical Coverage for Unit Employees Hired on or After January 1, 2004 and employees who chose to opt -in to retiree health benefits provided under California Government Code section 22893 as outlined above: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January I, 2004 and employees who opt -in as outlined above. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. Section 21 – ICMA - Retirement Health Savings Plan. The City provides an ICMA retirement health savings plan for Association members. The ICMA retirement health savings plan is subject to applicable IRS rules and plan guidelines as well as any other applicable laws. Each Association member shall make a pre-tax contribution to the plan as follows: 1. Each member shall contribute 1% of their base salary bi-weekly into the plan. 2. Each member within 5 years of the minimum retirement age 50 shall contribute an additional I% of their base salary bi-weekly into the plan. 3. Upon retirement from the city, each member shall contribute the then cash value of 100 hours of vacation into the plan. 4.2. Failure by each member to contribute will deem the health savings plan out of compliance with IRS and plan guidelines. 5.3. The administrative fee shall be paid by the Association member. The manner and amount of contributions may be periodically modified by agreement of both parties. Section 22 – Deferred Compensation Program. The City will provide a Deferred Compensation Program for employees according to the provisions of the plans and applicable IRS guidelines. ARTICLE VI – MANAGEMENT BENEFIT PROGRAM Section 23 – Professional Development Reimbursement. The purpose of this program is to provide employees with resources to improve and supplement their job and p rofessional skills. Reimbursement for authorized self-improvement activities may be granted to each Association employee up to a maximum of five hundred dollars ($500) per fiscal year. A departmental training fund of one thousand dollars per employee ($1,000) will be established for subject matter, City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 12 of 24 leadership or other training that the Department Director identifies as a need for employees within that Department. The following items are eligible for reimbursement: a) Civic and professional association memberships b) Conference participation and travel expenses, which must occur within the compensation plan period. c) Educational programs, books and videos, and tuition reimbursement designed to maintain or improve the employee's skills in performing his or her job or future job opportunities, should support the City's mission or be necessary to meet the educational requirements for qualification for employment. Permissible educational expenses are refresher courses, courses dealing with current developments, academic or vocational courses, as well as the travel expenses associated with the courses as defined by the City's travel expense report from the Policy & Procedures Manual Section 1-02 ASD. d) Professional and trade journal subscriptions not to exceed 12 months. Approval will be at discretion of department head and signature is required on reimbursement form. Amounts under this professional development program will be pro-rated in the first year of employment or promotion. Section 24 – Physical Examinations. All management and professional employees are eligible to receive an annual physical examination as follows: a) Use the periodic health exam benefit as provided under the PERS Health Plan option you have selected. Each of the PERS Health Plans provides for a periodic physical examination. The examination must be performed by your primary care physician – unless he/she refers you to another physician. b) The types of tests and the frequency of the tests cannot exceed AMA guidelines. The guidelines are a suggested minimum based on research studies concerning preventative care. The judgment of your physician is the final determinant for your care. c) Any additional necessary asymptomatic tests that are required by your physician that are not covered by your health plan will be reimbursed by the City. Any symptomatic tests will be covered under your PERS Health Plan. The Reimbursement for Periodic Physical Exam Form is available on the Human Resources Intranet site. This benefit will not be pro-rated. Section 25 – Excess Benefit. This benefit is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 annually that they can designate among the following options: a) Medical Flexible Spending Account (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, City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 13 of 24 including existing City-sponsored plans. This includes prescribed medications and co-payments as well as over-the-counter drugs, including: antacids, allergy medicines, pain relievers and cold medicines. However, nonprescription dietary supplements (e.g. vitamins, etc.) toiletries (e.g. toothpaste), cosmetics (e.g. face cream), and items used for cosmetic purposes (e.g. Rogaine) are not acceptable. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the following limits: Dependent care expenses will be reimbursed only to the extent that the amount of such expenses reimbursed under this Management Benefit Program, when added to the amount (if any) of annual dependent care expenses that the participant has elected under the City's Flexible Benefits Plan, do not exceed the maximum permitted under the DCAP. 1) The annual amount submitted for reimbursement cannot exceed the income of the lower-paid spouse. 2) The expenses must be employment-related expenses for the care of one or more dependents who are under 13 years of age and entitled to a dependent deduction under Internal Revenue Code section 151 (e) or a dependent who is physically or mentally incapable of caring for himself or herself. 3) The payments cannot be made to a child under 19 years of age or to a person claimed as a dependent. 4) If the services are provided by a dependent care center, the center must comply with all state and local laws and must provide care for more than six individuals (other than a resident of the facility). 5) Dependent care expenses not submitted under this section are eligible under the City Dependent Care Assistance Plan (DCAP). However, the maximum amount reimbursed under DCAP will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Non-taxable Professional Development Spending Account. Provides reimbursement for Non-Taxable professional development expenses (e.g., job-related training and education, seminars, training manuals, etc.) to the extent they are not paid or reimbursed under any other plan of the City. d) Gym or Health Club Memberships. Provides reimbursement for annual or monthly memberships, including personal trainers. Reimbursement of this expense is taxable to the employee. e) Deferred Compensation. The $2,500 excess benefit provided in this section made on a one-time contribution basis on election by the employee towards the employee's City-sponsored 457 Deferred Compensation plan with either ICMA-RC or the Hartford. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a "use -it-or-lose-it" basis. This means that any amounts City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 14 of 24 designated and not used by the end of the calendar year ( or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro -rata basis for employees who are part- time or who are in a management or professional pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro- rated upon separation of employment. Section 26 – Management Annual Leave. At the beginning of each calendar year regular management employees will be credited with 80 hours of management annual leave. This leave is granted in recognition of the extra hours management employees work over their regular schedule. This leave may be taken as paid time off, added to vaca tion accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is taken under this provision, I 0-hour shift workers will receive one shift off for each 8 hours charged; 24 -hour shift workers will receive one-half shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal year; employees who have used more than the p ro-rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the calendar year will be paid in cash unless a different option as indicated above is elected by the employee. ARTICLE VII – OPERATIONAL ISSUES Section 27 – Management Assignments. The Chief of Police or his/her designee shall have the authority to make management assignments at his or her discretion. Where possible, these assignments should take into account the needs of the organization, development of the employee and individual employee desires. Section 28 – Basic Work Schedules. Generally, police managers will be expected to work flexible schedules and reasonably adjust their hours to oversee their employee groups, manage 24/7 law enforcement operations, perform routine work, complete daily assignments, and occasionally attend meetings or other events outside their normal work shifts. Basic work schedules will be the 4/10 schedule. Section 29 – On Duty Workouts. Police managers who complete the yearly Wellness Program requirements may participate in an on-duty workout for a reasonable period as determined by the Chief, as long as it does not interfere with the performance of the employee's job duties, for which the employee will remain accountable. Applicable guidelines and conditions are outlined in the Department's Wellness Program Policy which the City may change from time to time. Section 30 – Take Home Emergency Response Vehicles. Subject to approval by the City Manager and the Police Chief, Police Captains will continue the current take home emergency response vehicle program which allows for the immediate and emergent response to public safety incidents involving the City. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 15 of 24 The specific use and restrictions for driving these vehicles shall adhere to the guidelines outlined in the then current version of City Policy and Procedure 4-01. Section 31 – Modified Duty Assignments. In cases of non-work-related injury, illness or pregnancy, an employee, upon approval of the department head, City Risk Manager and the employee's doctor, may return to work or continue work with doctor-approved limited or alternative duty pursuant to Policy & Procedure 2-04. Approval for reasonable accommodation such as limited/alternative duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. The City doctor may be consulted in determining work limitations. Any assignment to a limited/alternative duty will be on a temporary basis. Section 32 – Meal Allowance. Police managers attending night meetings will be eligible for meal re- imbursement under the guidelines set forth in the then current version of City Policy and Procedure No. 1-02. Section 33 – Uniforms. a) The City will supply complete uniforms to all sworn personnel. All uniform items are the property of the City. One complete uniform consists of: (I) three pair of trousers, (2) three short-sleeved shirts with patches and zippers if desired, (3) three long-sleeved shirts with patches and zippers if desired, (4) three cotton or two synthetic fiber turtleneck shirts, (5) hat, (6) duty jacket with patches, (7) dress jacket with patches, (8) necktie, and (9) rain gear. b) At the time of initial employment, every sworn employee will be issued one complete uniform. Uniform items will be replaced on an as-needed basis subject to verification by management. c) The City shall provide uniform cleaning for sworn representation unit personnel . d) Personnel are accountable for all uniform items issued to them. If a particular item is lost or damaged due to employee negligence, the employee will be required to reimburse the City for value of the item(s) lost or damaged. e) The City shall reimburse employees for the full cost of job-related boots upon verification of such purchase by the employees. The City will make the reimbursement only upon proof that the previous boots have become unserviceable due to wear or damage. (Job-related boots shall mean well-constructed, high topped boots that provide full ankle and foot support, which are selected from list agreed to by M anagement and the Association.) Employees are responsible for the full cost of any low-top, black shoes that are worn with the uniform. ARTICLE VIII – ASSOCIATION AGREEMENTS Section 34 – Association Security. a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Unit and give the employee a current copy of the Memorandum of Agreement. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 16 of 24 b) If there is no disruption of work, members of the Association Board of Directors may use a reasonable amount of on-duty time without loss of pay to meet with Management specifically related to representation of employees. Such release time must be cl eared in advance by the Chief (or his/her Designee) who is a member of management. For purposes of this section, representation shall include: (i) Meetings with represented employees or management related to a grievance or disciplinary action, including investigation and preparation time. (ii) A meeting with management related to benefits, working conditions or other terms and conditions of employment. Section 35 – Association Representative Access to Work Locations. Employee and non-employee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum o f Understanding, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs. Advance arrangement shall normally include not less than one hour's notice in the case of an employee Association representative, two hours in the case of non- employee Association representatives. Non-employee representatives must also notify the Human Resources Department Manager (or designee) of the time, date and location of the representative's intended visit. Section 36 – Release Time. The Association President or his or her-designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary issues, and training for association members. Release time shall normally be approved in advance by the department head and must not detract from the performance of the representative's City job duties, for which he or she will remain accountable. Section 37 – Use of City Facilities for Association Business. Any use of City facilities shall be governed by the then current version of City Policy and Procedure No. 4 -07. Section 38 – Payroll Deduction. The City shall deduct Association membership dues and any other mutually agreed upon payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the City and the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. ARTICLE IX – LEAVE PROGRAMS Section 39 – Sick Leave. a) Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Subsection (i), personal business chargeable to sick leave. Up City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 17 of 24 to 8 days sick leave per year may be used for illness in the immediate family (spouse, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee). b) Eligibility. Regular and part-time employees shall be eligible to accrue and use sick leave. c) Accrual. Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi -weekly pay period. d) Accumulation. Sick leave accrual accumulation shall be limited to 1,000 hours with no payoff provision for unused balance at termination. e) Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight hours or shift equivalent 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. 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. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. When an employee finds it necessary to be absent for any reason, he/she should contact th e Department as soon as possible, but no later than the start of the scheduled shift on the first working day of absence, and shall regularly report by the start of each subse quent shift unless hospitalized. Such reports may be subject to written documentation if there is reasonable evidence that sick leave abuse has occurred. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Documentation may also be required if there is a reasonable basis to believe that the employee may not be medically fit to return to work. f) Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under the long-term disability group insurance coverage, whichever comes first, an employee may be granted City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 18 of 24 a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. g) Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, ex cept as otherwise provided by law. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. h) Personal Business Leave Chargeable to Sick Leave. Employees may use up to twenty (20) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of management. Section 40 – Voluntary Catastrophic Leave Program. If permitted by agreement between the City and the Palo Alto Police Officers' Association (P.O.A.) members of the Palo Alto Police Managers' Association representation unit may participate in the "Voluntary Leave Program" applicable to the P.O.A. representation unit to assist in maintaining the pay of an employee who is eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- P.O.A. agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law). Otherwise, said program shall be governed by the conditions and restrictions set forth in the City-P.O.A. Memorandum of Agreement. Section 41 – Leave of Absence With Pay. The City Manager may grant a regular employee under his/her control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he/she deems adequate and in the best interest of the City. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. a) Subpoenas: leave of absence. Regular employees who are subpoenaed in their capacity as a City employee to appear as witnesses on behalf of the State of California or any of its agencies may be granted leaves of absence with pay from their assigned duties until released. The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his or her services as a witness. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. b) Employee's time off to vote. Pursuant to Elections Code section 14000, when the employee is unable to vote outside of the employee's work hours, up to two (2) hours' time off with pay to vote at any general or direct primary election shall be granted at the beginning or end of the employee's scheduled shift, whichever allows the most free time for voting and the least time off from the regula r working shift. Such time off with pay to vote shall only be granted if the employee provides at least two working City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 19 of 24 days' notice that time off for voting is desired, unless the nature of the employee's schedule prevents the employee from anticipating the n eed for time off to vote. c) Leave of absence; death in family. Leave of absence with pay of three (3) days shall be granted an employee by the head of his or her department in the event of death in the employee's family, but shall not exceed a total of six (6) paid work days per calendar year. For purposes of this section, family is defined as wife, husband, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, father, step-father, father-in- law, mother, step-mother, mother-in-law, brother, step-brother, brother-in-law, 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. Requests for leave in excess of three (3) days shall be subject to the approval of the City Manager. Approval of additional leave will b e based on the circumstances of each request with consideration given to the employee's need for additional time off. d) Jury duty: leave of absence. Employees required to report for jury duty 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 for such duties other than mileage or subsistence allowances within thirty days from the termination of his/her jury service. Section 42 – Leave of Absence 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) Other leaves. Leaves of absence without pay is at the discretion and approval of management. Unauthorized leave of absence/job abandonment may result in disciplinary action up to and including termination of employment. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued paid vacation and sick leave in a manner consistent with state and federal law. All leaves without pay must be approved in advance and in writing by the department to be effective. c) Approval of department head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. d) Approval by City Manager. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 20 of 24 Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. e) Absence without leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. f) Leave of absence; death outside the immediate family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Subsections (b), (c), (d) and (e). g) Military leave of absence. State and federal law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS Section 43 – Probationary Period. a) All original appointments to full-time or part-time regular municipal service positions shall be tentative and subject to a probationary period of twelve months for management employees b) The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing the employees 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. c) A report of performance of each probationary employee shall be made by the depa rtment head and shown to the probationary employee on or before expiration of the probationary period. d) During the probationary period a new employee may be suspended, demoted or terminated at any time by the appointing authority without cause and without r ight of appeal or to submit a grievance. Section 44 – Disciplinary Action and Unsatisfactory Work or Conduct. Disciplinary action shall be governed by the City’s Merit Rules and Regulation, Palo Alto Police Department Policy 340 on Conduct, the Palo Alto Police Department Internal Affairs and Complaint Investigations Guidelines, and the Police Officer Procedural Bill of Rights Act. Section 45 – Grievance Procedure. a) The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or Association grievances, as provided for below. In presenting a grievance, the aggrieved and/or his or her represen tative is assured freedom from restraint, interference, coercion, discrimination or reprisal. b) Definition. A Grievance is: City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 21 of 24 1. An unresolved complaint or dispute regarding the application or interpretation of this Memorandum of Agreement 2. An appeal from a disciplinary action of any kind against an employee covered by this Memorandum of Agreement. c) Access to the Grievance Procedure. Except as otherwise provided in the Memorandum of Agreement for probationary employees, all employees represented by the Association m ay file and process a grievance. Such aggrieved employees may be represented by the Association or may represent themselves in preparing and presenting their grievance at any level of review. The Association may file a grievance when an Association right under this Memorandum of Agreement not directly related to an individual employee becomes subject to dispute. d) Conduct of Grievance Procedure. 1. The time limits specified in this Article may be extended by written mutual agreement of the aggrieved employee or the Association and the reviewer concerned. 2. If a decision is not rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. 3. The grievance will be considered settled if the decision at any step is not appealed within the specified time limit. 4. The aggrieved employee or the Association and Human Resources Director may mutually agree in writing to waive any step of the grievance procedure. 5. Written grievances shall be submitted on forms provided by the City or on forms that are mutually agreeable to the City and the Association. 6. Any retroactive monetary arbitrator award or settlement by mutual agreement shall not extend more than ninety (90) days before the date that the grievance was filed in writing at Step 2 below. The following steps shall apply: Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with his or her immediate supervisor by the end of the tenth working day following the discovery of or the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. (Note: For purposes of time limits, the working days are considered to be Monday through Friday, exclusive of City holidays.) Appeals of disciplinary action should be processed through the procedures outlined in Step 2-3 of the Grievance Procedure. Step II. If the grievance is not resolved through the informal discussion, the employee will reduce the grievance to writing and submit copies to the department head or his/her designee within ten (10) working days of the discussion with the immediate supervisor. The department head or his/her designee shall have ten (10) working days from the receipt of a written grievance to review the matter and prepare a written statement. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 22 of 24 Step III. If the grievance is not resolved at Step II, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding grievance arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with As sociation approval. All Step III appeals must be filed in writing at the Human Resources Department Office within ten (10) working da ys of receipt of the Step II appeal. If the aggrieved employee 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. The City Manager shall render a written decision to all parties directly involved within ten working days after receiving the employee's appeal. If the aggrieved employee elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. 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 Con ciliation 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 appealed to the arbitrator. The arbitrator shall be without power to make any decision: 1) Regarding matters of interest. 2) Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. 3) Granting any wage increases or decreases. 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. If either party seeks arbitration and the other party claims the matter is not s ubject 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 this section and without regard to the merits of the grievance. 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 resol ve the issue on the merits. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Association. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Association. City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 23 of 24 Section 46 – No Strikes. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, concerted abuse of leave of absence provisions, work stoppage or work slowdown of any kind. No employee shall refuse to cross any picket line in the conduct of Police Department business, nor shall the Association, its representatives, or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. Section 47 – Reduction in Workforce. In the event of reductions in force, they shall be accomplished wherever possible through attrition. If the work force is reduced in the Association, the City will give an employee impacted by a potential lay off 30 days' notice prior to any reduction in force. ARTICLE XI – LOOKING FORWARD Section 48 – Full Understanding. This Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. The parties agree that they shall each carry out their responsibilities under the MOA in good faith. Section 49 – Legal Compliance/Severability. If any provision herein contained is rendered or declared invalid by reason of existing State or Federal legislation or by reason of State Supreme Court or U. S. Supreme Court ruling, 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 50 – Duration. The term of this Agreement shall commence on January 11October 1, 20186 and shall expire on June 30, 202117. FOR: FOR: Palo Alto Police Management Association City of Palo Alto Ron WatsonJames Reifschneider, Lieutenant James Keene, City Manager April Wagner, Lieutenant Rumi Portillo, Human Resources Director Andrew Binder, Captain Robert Jonsen, Police Chief Dennis Burns, Police Chief Nicholas Raisch, Manager of Employee and Labor Relation Natalie Korthamar, Manager of Employee and Labor Relation City of Palo Alto and PAPMA January 11, 2016October 1, 2018 – June 30, 202117 Page 24 of 24 APPENDIX A-1 Effective the first full pay period following adoption (4% Increase - LT and 1% Increase - CPT) Job Code FLSA Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 74.15$ 92.68$ 111.22$ 16,065.00$ 192,774.00$ 149 Exempt Police Liet-Adv 086 66.24$ 82.80$ 99.36$ 14,352.00$ 172,224.00$ Effecitve the first full pay period following July 1, 2019 - 4% Increase Job Code FLSA Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 77.12$ 96.39$ 115.67$ 16,708.00$ 200,491.00$ 149 Exempt Police Liet-Adv 086 68.90$ 86.12$ 103.35$ 14,928.00$ 179,130.00$ Effective the first full pay period following July 1, 2020 - 4% Increase Job Code FLSA Classification Title Grade Code Min Hourly Rate Mid Hourly Rate Max Hourly Rate Approx Mid-Point Monthly Salary Approx Mid-Point Annual Salary 147 Exempt Police Captain-Adv 023 80.20$ 100.25$ 120.30$ 17,377.00$ 208,520.00$ 149 Exempt Police Liet-Adv 086 71.66$ 89.57$ 107.49$ 15,526.00$ 186,306.00$ City of Palo Alto Police Management Association Salary Schedule Tori Anthony, Senior HR Administrator Frank Lee, Senior HR Administrator City of Palo Alto (ID # 9652) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/1/2018 City of Palo Alto Page 1 Summary Title: Second Reading: Surveillance Technologies Title: SECOND READING: Policy and Services Committee Recommendation to Adopt an Ordinance Adding Sections 2.30.620 Through 2.30.690 to Title 2 of the Administrative Code to Establish Criteria and Pr ocedures for Protecting Personal Privacy When Considering the Acquisition and use of Surveillance Technologies, and Provide for Ongoing Monitoring and Reporting (FIRST READING: 9/10/2018 PASSED: 8 -1 Holman no) From: City Manager Lead Department: City Clerk This Ordinance was first heard on September 10, 2018, where the City Council approved it without changes, 8-1 Holman no. It is now before you for the second reading. Attachments: Attachment A: Ordinance NOT YET APPROVED 180419 th 0140191 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Adding Sections 2.30.620 – 2.30.690 to Title 2 of the Palo Alto Municipal Code to Establish Procedures for the Relating to Surveillance Technology The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Recitals. The Council of the City of Palo Alto finds and declares as follows: To promote public trust and ensure protection of privacy, the Palo Alto City Council desires to establish a general policy governing consideration, acquisition and use of technologies by the City, including its contractors and partners, that gather information about specific individuals or groups of individuals; The City also recognizes the value of and wishes to foster Smart City initiatives that enhance City programs and services to citizens and visitors through the use of technology; Accordingly, the City adopts the following ordinance to increase transparency, oversight and accountability in the acquisition and deployment of technologies that collect and retain personally identifiable information of persons not accused of unlawful activity. SECTION 2. PART 6A – SURVEILLANCE AND PRIVACY PROTECTIONS, Sections 2.30.620 – 2.30.690, is added to Chapter 2.30 [Contracts and Purchasing Procedures], of Title 2 [Administrative Code] of the Palo Alto Municipal Code to read as follows: 2.30.620 Title. This Part 6A shall be known as the Surveillance and Privacy Protection Ordinance. 2.30.630 Council Approval Required for Contracts, Agreements, Grant Applications and Donations Involving Surveillance Technology. The Council shall approve each of the following: (a) Applications for grants, acceptance of state or federal funds, or acceptance of in-kind or other donations of Surveillance Technology; (b) Notwithstanding any delegation of authority to award contracts in this Chapter 2.30, contracts of any type and any amount that include acquisition of new Surveillance Technology; (c) Use of Council-approved Surveillance Technology for a purpose, in a manner, or in a location outside the scope of prior Council approval; or (d) Agreements with a non-City entity to acquire, share, or otherwise use Surveillance Technology or the information it provides. NOT YET APPROVED Page 2 of 5 2.30.640 Council Approval of Surveillance Use Policy. The Council shall approve a Surveillance Use Policy addressing each activity that it approves that is listed in Section 2.30.630. If no current Surveillance Use Policy covers an approved activity, Council shall adopt a new policy or amend an existing policy to address the new activity. 2.30.650 Information Required. Unless it is not reasonably possible or feasible to do so, before Council approves a new activity listed in Section 2.30.630, the City should make available to the public a Surveillance Evaluation and a proposed Surveillance Use Policy for the proposed activity. 2.30.660 Determination by Council that Benefits Outweigh Costs and Concerns. Before approving any new activity listed in Section 2.30.630, the Council shall assess whether the benefits of the Surveillance Technology outweigh its costs. The Council should consider all relevant factors, including financial and operational impacts, enhancements to services and programs, and impacts on privacy, civil liberties, and civil rights. 2.30.670 Oversight Following Council Approval. Beginning fiscal year 2019 and annually thereafter, the City shall produce and make available to the public an Annual Surveillance Report. The Annual Surveillance Report should be noticed as an informational report to the Council. The Council may calendar the Annual Surveillance Report or any specific technology included in the report for further discussion or action, and may direct that (a) use of the Surveillance Technology be modified or ended; (b) the Surveillance Use Policy be modified; or (c) other steps be taken to address Council and community concerns. 2.30.680 Definitions. The following definitions apply to this Section: (a) “Annual Surveillance Report” means a written report, submitted after the close of the fiscal year and that includes the following information with respect to the prior fiscal year: (1) A description of how each Council-approved Surveillance Technology was used, including whether it captured images, sound, or information regarding members of the public who are not suspected of engaging in unlawful conduct; (2) Whether and how often data acquired through the use of the Surveillance Technology was shared with outside entities, the name of any recipient entity, the types of data disclosed, and the reason for the disclosure; NOT YET APPROVED Page 3 of 5 (3) A summary of any community complaints or concerns about the surveillance technology; (4) Non-privileged and non-confidential information regarding the results of any internal audits, information about violations of the Surveillance Use Policy, and any actions taken in response; (5) Whether the Surveillance Technology has been effective at achieving its identified purpose; (6) The number and nature of Public Records Act requests relating to the Surveillance Technology; (7) Annual costs for the Surveillance Technology and for compliance with this Surveillance and Privacy Protection Ordinance, including personnel and other ongoing costs, and sources of funding; and (8) Other relevant information as determined by the City Manager. The Annual Surveillance Report will not include information that may compromise the integrity or limit the effectiveness of a law enforcement investigation. (b) "Surveillance Evaluation" means written information, including as part of a staff report, including: (1) A description of the Surveillance Technology, including how it works and what information it captures; (2) Information on the proposed purpose, use and benefits of the Surveillance Technology; (3) The location or locations where the Surveillance Technology may be used; (4) Existing federal, state and local laws and regulations applicable to the Surve illance Technology and the information it captures; the potential impacts on civil liberties and privacy; and proposals to mitigate and manage any impacts; (5) The costs for the Surveillance Technology, including acquisition, maintenance, personnel and other costs, and current or potential sources of funding. (c) “Surveillance Technology” means any device or system primarily designed and actually used or intended to be used to collect and retain audio, electronic, visual, location, or simi lar information associated with any specific individual or group of specific individuals, for the purpose of tracking, monitoring or analysis associated with that individual or group of individuals. Examples of Surveillance Technology include drones with cameras or monitoring capabilities, automated license plate readers, closed -circuit cameras/televisions, cell-site NOT YET APPROVED Page 4 of 5 simulators, biometrics-identification technology and facial-recognition technology. For the purposes of this Ordinance, “Surveillance Technology” does not include: (1) Any technology that collects information exclusively on or regarding City employees or contractors; (2) Standard word-processing software; publicly available databases; and standard message tools and equipment, such as voicemail, email, and text message tools; (3) Information security tools such as web filtering, virus detection software; (4) Audio and visual recording equipment used exclusively at open and public events, or with the consent of members of the public; (5) Medical devices and equipment used to diagnose, treat, or prevent disease or injury. (d) "Surveillance Use Policy" means a stand-alone policy or a section in a comprehensive policy that is approved by Council and contains: (1) The intended purpose of the Surveillance Technology. (2) Uses that are authorized, any conditions on uses, and uses that are prohibited. (3) The information that can be collected by the Surveillance Technology. (4) The safeguards that protect information from unauthorized access, including, but not limited to, encryption, access-control, and access oversight mechanisms. (5) The time period for which information collected by the Surveillance Technology will be routinely retained; the process by which the information is regularly deleted after that period lapses; and conditions and procedures for retaining information beyond that period. (6) If and how non-City entities can access or use the information, including conditions and rationales for sharing information, and any obligations imposed on the recipient of the information. (7) A description of compliance procedures, including functions and roles of City officials, internal recordkeeping, measures to monitor for errors or misuse, and corrective procedures that may apply. 2.30.690 No Private Right of Action. This Surveillance and Privacy Protection Ordinance is not intended and shall not be interpreted to create a private right of action for damages or equitable relief on behalf of any person or entity against the City or any of its officers or employees. NOT YET APPROVED Page 5 of 5 SECTION 3. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this ordinance are hereby declared to be severable. SECTION 4. CEQA. This ordinance is exempt from the requirements of the California Environmental Protection Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen with certainty that there is no possibility the adoption and implementation of this ordinance may have significant effect on the environment. SECTION 5. Effective Date. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: ______________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: ____________________________ City Manager ______________________________ City Attorney CITY OF PALO ALTO OFFICE OF THE CITY CLERK October 1, 2018 The Honorable City Council Palo Alto, California SECOND READING: Adoption of an Ordinance Amending Chapter 9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals, and Safety) of the Palo Alto Municipal Code to Require Relocation Assistance for No-fault Eviction for Multifamily Housing Developments Containing 50 or More Rental Units (Adopted on FIRST READING on September 17, 2018 (PASSED 8-1 Tanaka no)) This Ordinance was first heard by the City Council on September 17, 2018, where it was approved, 8-1 Tanaka no, without changes. It is now before you for the second reading. ATTACHMENTS: • Attachment A: ORD Rental Housing Relocation Assistance (att B) (PDF) Department Head: Beth Minor, City Clerk Page 2 NOT YET APPROVED 1 180912 sm 010 ORDINANCE NO. Ordinance of the Council of the City of Palo Alto Amending Chapter 9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals, and Safety) of the Palo Alto Municipal Code to Require Relocation Assistance for No-Fault Eviction for Multifamily Housing Developments Containing 50 or More Rental Units The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: (a) There is a significant and prolonged shortage of, but increasing demand for, rental housing in the City of Palo Alto. These conditions have created a housing crisis that is particularly acute for those residents of Palo Alto seeking rental housing. (b) Numerous recent studies conclude that the housing crises at the state and local levels have reached emergency levels. An April 2018 report by the California Housing Partnership states that Santa Clara County is facing a “housing emergency,” resulting in a 13% rise in homelessness and demand for almost 60,000 more affordable rental units throughout the county. A May 2018 report by Next 10 ranks California 3rd worst among states in share of household income spent on rental costs and worst in the nation for rental housing over-crowdedness. (c) The cost of housing in Palo Alto is among the highest in the world. As of July 2018, the median home sales price is reported at over $3 million and the median rent is reported as high as $5,900 per month. (d) According to rental market tracking sites Zumper, Trulia, and Rentometer, as of August 2018, the average rent in Palo Alto is approximately $2,300 per month for a studio, $2,900 for a one-bedroom, $4,300 for a two-bedroom, $5,600 for a three- bedroom, and $7,000 for a four-bedroom unit. (e) Tenants evicted in Palo Alto are forced to incur substantial costs related to new housing including, but not limited to, move-in costs, moving costs, new utility hook- ups, payments for temporary housing, and lost work time seeking housing. (f) Move-in costs commonly include first and last month's rent plus a security deposit equal to one month's rent, leading to total relocation expenses in excess of three months’ rent. (g) Tenants who do not have adequate funds to move and who are forced to move pursuant to no-fault eviction notice face displacement and great hardship. (h) The impacts of these no-fault evictions are particularly significant on low-income, elderly, and disabled tenants, and tenants with minor children, justifying an additional payment for households with these tenants. NOT YET APPROVED 2 180912 sm 010 (i) Certain no-fault evictions that reduce the number of rental units available, whether on a temporary or permanent basis, exacerbate the housing crisis in Palo Alto, particularly for structures containing 50 or more rental units. (j) For the reasons set forth above, the relocation assistance provided in this ordinance is justified and necessary as an emergency measure for evicted tenants to find new housing and avoid displacement and to otherwise preserve the public peace, health, and safety. SECTION 2. Section 9.68.035 (Relocation Assistance for Certain Displacements) of the Chapter 9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals, and Safety) of the Palo Alto Municipal Code is hereby amended to read as follows: 9.68.035 Relocation Assistance for No Fault Eviction (a) This section shall be applicable only to structures or lots containing 50 or more rental units. (b) For the purposes of this section, a “no-fault eviction” means an action by a landlord to recover possession of a rental unit for any reason other than the following: 1. The tenant has failed to pay rent to which the landlord is legally entitled. 2. The tenant has violated a lawful obligation or covenant of the tenancy. 3. The tenant has refused the landlord reasonable access to the unit for the purposes of making repairs or improvements, for any reasonable purpose as permitted by law, or for the purpose of showing the rental unit to any prospective purchaser or tenant. 4. The tenant is permitting a nuisance to exist in, or is causing damage to, the rental unit. 5. The tenant is using or permitting a rental unit to be used for any illegal purpose. 6. The landlord seeks in good faith to recover possession of the rental unit in order to comply with regulations relating to the qualifications of tenancy established by a governmental entity, where the tenant is no longer qualified. No fault evictions shall include, without limitation, actions in which the landlord seeks in good faith to recover possession of the rental unit: 7. To demolish or otherwise permanently withdraw the rental unit from offer for rent or lease pursuant to California Government Code sections 7060-7060.7. 8. To perform work on the building or buildings housing the rental unit that will render the rentable unit uninhabitable; 9. For use and occupancy by the landlord or the landlord’s spouse, grandparents, brother, sister, father-in-law, mother-in-law, son-in- NOT YET APPROVED 3 180912 sm 010 law, daughter-in-law, children, or parents provided the landlord is a natural person. 10. For no specified cause. (c) Whenever a landlord seeks a no-fault eviction, as defined in this section, other than temporary displacement of 31 days or fewer, the landlord shall provide a relocation assistance payment as follows: 1. Unit Type Amount 0 bedrooms $7,000 1 bedroom $9,000 2 bedrooms $13,000 3 or more bedrooms $17,000 If the rental unit is occupied by two or more tenants, the landlord shall provide each tenant with a proportional share of the required payment. One half of the payment shall be paid at the time that the landlord provides notice of its intent to seek no-fault eviction; the remainder of the payment shall be paid to each tenant when that tenant vacates the unit. 2. Notwithstanding subsection (d)(1), each rental unit that, at the time the landlord provides notice of its intent to seek no-fault eviction, is occupied by a low-income household as defined in Chapter 16.65, a tenant who is 60 years of age or older, a tenant who is disabled within the meaning of Government Code section 12955.3, or a tenant who is a minor, shall be entitled to a single additional relocation payment of $3,000. This amount shall be divided equally among the qualifying (i.e. low-income, elderly, disabled, or minor) tenants. In order to receive this additional payment a qualifying tenant must provide written notice to the landlord of his or her eligibility along with supporting evidence within 15 days of receiving the landlord’s notice. The entirety of this additional payment shall be paid within 15 days of the tenant’s written notice to the landlord. (d) Prior to or at the same time that the landlord provides notice of its intent to seek no-fault eviction, the landlord shall serve on the tenant a written notice describing the rights described in this section. The failure to provide this notice shall not operate as a substantive defense to an eviction pursuant to California Government Code sections 7060-7060.7. (e) Commencing July 1, 2019, the relocation payments specified in this section shall increase annually at the rate of increase in the "rent of primary residence" expenditure category of the Consumer Price Index (CPI) for All Urban Consumers in the San Francisco-Oakland-San Jose Region for the preceding calendar year. Current rates shall be published on the City’s website. NOT YET APPROVED 4 180912 sm 010 (f) A landlord may request a waiver or adjustment of the relocation assistance payment required by this section only upon a showing that strict application of its requirements would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property. Requests for waiver or adjustment must be submitted in writing to the Director of Planning and Community Environment together with supporting documentation at least 90 days before the proposed termination of tenancy. Requests shall be acted on by the City Council. (g) The Director of Planning and Community Environment may issue regulations implementing this section. SECTION 3. It is the intent of the City Council that the relocation assistance provided for in this Ordinance shall be paid in full by a landlord who recovers possession of a rental unit after the effective date of this ordinance as a result of no fault eviction, regardless of the date that notice of eviction is provided. In the event the landlord provided notice of no-fault eviction before the effective date of this Ordinance, the landlord shall pay one half of the relocation payment at any time up to and including the date on which each tenant vacates the unit; the landlord shall pay the remainder of the payment no later than the date when each tenant vacates the unit. SECTION 4. If any provision, clause, sentence or paragraph of this Ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable. In addition, this Ordinance is enacted to exercise the specific authority provided for in Chapter 12.75 of Division 7 of Title 1 of the California Government Code and reserved to local governments in Chapter 2.7 of Title 5 of Part 4 of Division 3 of the California Civil Code. In the case of any amendment to these chapters or any other provision of State law which amendment is inconsistent with this Ordinance, this Ordinance shall be deemed to be amended to be consistent with State law. SECTION 5. In the event Ordinance No. 5447 is held invalid, Section 2 of this Ordinance shall be deemed to add, rather than amend, Section 9.68.035 (Relocation Assistance for Certain Displacements) of the Chapter 9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals, and Safety) of the Palo Alto Municipal Code. SECTION 6. The City Council finds and determines that this Ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment. / / NOT YET APPROVED 5 180912 sm 010 SECTION 7. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: City Attorney City Manager Director of Planning and Community Environment Director of Administrative Services City of Palo Alto (ID # 9646) City Council Staff Report Report Type: Action Items Meeting Date: 10/1/2018 City of Palo Alto Page 1 Summary Title: Human Relations Commission Response to Council Resolution # 9653 Title: Recommendations From the Human Relations Commission in Response to Council Resolution Number 9653 Reaffirming Palo Alto’s Commitment to a Diverse, Supportive, Inclusive and Protective Community (Continued From August 27, 2018) From: City Manager Lead Department: Community Services Recommendation As requested by Council, the Human Relations Commission (HRC) carefully considered Council Resolution #9653 Reaffirming Palo Alto’s Commitment to a Diverse, Supportive, Inclusive and Protective Community and prepared recommendations to support and extend the Council resolution, focusing in particular on immigration and gender equity issues. The HRC prepared a letter explaining their work and recommendations, attached as Attachment A to this report. Guided by the HRC’s proposals, City staff recommends that Council consider one or more of the following actions to further the HRC’s proposals, providing direction to staff regarding timing and prioritization in light of overall City goals and priorities: 1) California State Senate Bill 54 (SB54) – Sanctuary State – Direct the City Manager to review the City’s policies, procedures and programs, make any adjustments that may be appropriate, and report to Council on the City’s alignment with SB54. 2) California State Senate Bill 31 (SB31) - California Religious Freedom Act – Direct the City Manager to review the City’s policies, procedures and programs, make any adjustments that may be appropriate, and report to Council on the City’s alignment with SB31. 3) Send a letter of endorsement to California State Senator Kevin de Leon in recognition of the City’s commitment to the values expressed in SB54. 4) Send a letter of endorsement to California State Senator Ricardo Lara in recognition of City’s commitment to the values expressed in the SB31. City of Palo Alto Page 2 5) Adopt Amnesty International’s resolution in support of Refugee Resettlement in Santa Clara County. 6) Direct staff to study and return to Policy & Services with options for a City ordinance endorsing the United Nations’ Convention on the Elimination of all forms of Discrimination Against Women (CEDAW). Staff’s work should include: a. Affirming the City’s commitment to the principals of the United Nations convention of the elimination of all forms of discrimination against women, and b. A discussion of the potential for a gender analysis, including potential focus, scope, and phasing of an analysis, and roles of City staff, the HRC, and Council. Executive Summary The recommendations included in this report follow from the work of the HRC in response to Council Resolution #9653, Reaffirming Palo Alto’s Commitment to a Diverse, Supportive, Inclusive and Protective Community (Colleagues Memo from Council Members Holman, Kniss, Wolbach & Burt, passed on December 12, 2016). The HRC designated an ad hoc subcommittee of the Commission tasked with reviewing the Council resolution, planning an approach to address its main areas of emphasis, and drafting a response back to Council. After conducting a baseline assessment of the areas included in the resolution and testing the results against a list of established criteria, the HRC discussed and deliberated the suggested recommendations over a series of several meetings before bringing a final slate of recommendations to the HRC at its February 8, 2018 meeting. The recommendations being brought to the Council for their consideration highlight two key areas of focus of the Resolution; immigration and gender equality. As the subject matter of the Council’s resolution squarely aligns with the charge of the HRC, the Commission will continue to focus its ongoing efforts in support of a supportive and inclusive community and, when appropriate, bring forward other policies for Council consideration. Staff has added additional comments and suggestions to the HRC’s recommendations, to harmonize the HRC’s work with the City’s governance structure and in light of Council’s and the City Manager’s overall work plan and goals. Background On December 12, 2016, the Council passed Resolution #9653, Reaffirming Palo Alto’s Commitment to a Diverse, Supportive, Inclusive and Protective Community. As part of the approval motion, Council moved to refer the subject matter to the HRC, for “recommendation of implementation measures and additional elements that should be considered by the Council in the future.” ( Resolution #9653 - https://www.cityofpaloalto.org/civicax/filebank/documents/55179. Council Action Minutes 12/12/16 - https://www.cityofpaloalto.org/civicax/filebank/documents/55464). The subject matter of the Council’s resolution aligns with the charge of the HRC as the Commission has long addressed diversity and inclusion issues in the community. During City of Palo Alto Page 3 the spring of 2017, HRC Chair Valerie Stinger led a community committee to plan a series of four well-attended forums on implicit bias called Being Different Together – Taking the conversation deeper. This was a follow up to an initial forum on the topic the previous year. The HRC has also lead successful forums on Veterans Homelessness, Domestic Violence, and Senior Issues and takes seriously its role as a leader on human relations issues in the community. In response to Council Resolution #9653, the Commission created an ad hoc subcommittee (subcommittee) in the spring of 2017 to review the resolution, plan its approach to develop recommendations, and draft a response back to Council with assistance from Office of Human Services staff. As the Council’s resolution covered a broad area, the subcommittee’s first task was to identify the key areas that the Resolution reaffirmed including the: • City’s spirit of diversity and inclusion • Rights of vulnerable populations • Rejection of any forms of hate and bias • City’s commitment to lead by example To provide a sound response to Council that would include implementation measures, the subcommittee conducted a baseline assessment of the key focus areas of the resolution by interviewing key leaders in different sectors of the community, researching best practice programs and services locally, regionally and nationally, then “testing” all suggested recommendations for action against the following list of criteria which they established: • Serves vulnerable populations • Provides opportunity to make a difference • Informed by best practices of successful programs elsewhere • Leverages collaboration with local and county partners • Is achievable and scalable • Lies within the City’s sphere of influence • Reasonably serves populations featured in Council Resolution The subcommittee thoughtfully considered a series of options and initially developed a list of recommendations in seven areas: • Immigration • Gender Identity • Hate Crimes • Inclusive Public Engagement • Citywide Diversity Learning City of Palo Alto Page 4 • Implicit Bias • Gender From there, the subcommittee worked through a process of refining the draft action plan to craft a package of recommendations for the coming year, which they hoped would be meaningful, achievable and reach multiple vulnerable populations in the city, while acknowledging that there are additional programs and policies of merit that they hope to recommend or phase-in in the future. The subcommittee submitted a list of draft recommendations centered on immigration and gender equality for the full HRC’s consideration at their August, October, and December 2017 meetings, before the final recommendations included in this report were approved at their February 8, 2018 meeting. (link to February 8,2018 HRC minutes - https://www.cityofpaloalto.org/civicax/filebank/documents/63879). There were two items identified by the subcommittee that, with the assistance of city staff, have been resolved. The two items are gender neutral bathrooms and the City’s graffiti removal policy. California Assembly Bill - AB1732 states that starting March 1, 2017, all single-user toilet facilities in any business establishment, place of public accommodation or government agency must be identified as “all-gender” toilet facilities. City Facilities staff have been working to change signage on all affected bathroom facilities. While our Public Works Department had an operational practice of removing hate related graffiti within 24 hours, they solidified their commitment by adding language to that affect to their graffiti removal policy. Discussion As mentioned previously, the HRC subcommittee considered a wide range of responses in their draft action plan and brought several options for the full HRC’s consideration. At the February 8, 2018 HRC meeting, the Commission voted to forward the following recommendations for the Council’s consideration. (5-0-1) Below you will find the listing of these recommendations forwarded by the HRC followed by staff analysis. HRC Chair Stinger has also provided a memorandum outlining the Commission’s decision making process for Council consideration (Attachment A – HRC Recommendations). Immigration: 1) SB54 – Direct the City Manager to review the City’s policies, procedures and programs, make any adjustments that may be appropriate, and report to Council on the City’s alignment with SB54. California State Senate Bill 54, (https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB54) City of Palo Alto Page 5 known as the “Sanctuary State” bill, would limit state and local law enforcement communication with federal immigration authorities, and prevent officers from questioning and holding people on immigration violations. 2) SB31 – Direct the City Manager to review the City’s policies, procedures and programs, make any adjustments that may be appropriate, and report to Council on the City’s alignment with SB31. California State Senate Bill 31, (https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB31) known as the “California Religious Freedom Act,” prohibits a state or local agency from providing or disclosing to federal authorities personally identifying information regarding a person’s religious affiliation when the information is sought for compiling a database of individuals based on religious affiliation, national origin, or ethnicity. SB31 also prohibits state and local law enforcement from collecting information about an individual’s religious beliefs or affiliations except under certain circumstances. 3) Send a letter of endorsement to California State Senator Kevin de Leon in recognition of the City’s commitment to the values expressed in SB54. 4) Send a letter of endorsement to California State Senator Ricardo Lara in recognition of the City’s commitment to the values expressed in SB31. The preceding was suggested to HRC Chair Stinger by Santa Clara County Supervisor Joe Simitian, based on his experience in the California State Senate. The HRC believes these letters of thank you would publicly convey the City’s recognition of the sentiment included in both laws and Staff believes that these letters would allow the City to express their endorsement of the concepts included in the legislation. 5) Adopt Amnesty International’s resolution in support of Refugee Resettlement in Santa Clara County. Representatives from the local chapter of the human rights organization Amnesty International approached the HRC for their consideration of forwarding a resolution to Council in support of refugee resettlement in Santa Clara County https://www.cityofpaloalto.org/civicax/filebank/documents/63329). The resolution gives voice to plight of refugees worldwide. There was discussion and concern at the HRC level that this resolution was only symbolic in nature, but there was also mention of the importance of symbolic gestures at times, especially when communities act together. Amnesty International representatives informed the HRC that they have been approaching other cities in Santa Clara County as well. To add possible “action” to this symbolic gesture, the HRC also City of Palo Alto Page 6 passed a recommendation to consider adding refugee resettlement as a priority of need during the next Human Services Resource Allocation Process (HSRAP) funding cycle. 6) Direct staff to study and return to Policy & Services with options for a City ordinance endorsing the United Nations’ Convention on the Elimination of all forms of Discrimination Against Women (CEDAW). CEDAW is an international human rights treaty adopted by the United Nations (UN) in 1979. (http://citiesforcedaw.org/wp-content/uploads/2018/03/CEDAW_2-Pager_15- March-2018.pdf). To date, 187 of the 193 UN member states have ratified CEDAW. Iran, Sudan, Somalia, Palau, United States (U.S.), and Tonga have not ratified the treaty. It should be noted that several of the countries who are signatories to CEDAW do not offer the rights and/or protections for women already included in U.S. Law. In 2002, the Palo Alto City Council passed Resolution #8217 in support of an effort for United States ratification or accession to CEDAW https://www.cityofpaloalto.org/civicax/filebank/documents/63324). The Council has not acted further on any matter related to CEDAW. In the absence of a U.S. signature on CEDAW and stalled efforts in the U.S. Senate, there is a country-wide grassroots campaign called Cities for CEDAW (with the assistance of the Women’s InterCultural Network, a nongovernmental organization) whose aim is to encourage local cities and counties to pass local legislation establishing the principles of CEDAW (http://citiesforcedaw.org/wp- content/uploads/2018/01/CEDAW-USFact-Sheet-01-2018-1.pdf). According to Cities for CEDAW, the “principles embodied in CEDAW are fully in accord with American laws, principles and values. The U.S. Constitution already protects women’s rights to due process and equality under the law, and numerous laws on both the federal and state level also protect women, prohibiting sex discrimination in employment, education, housing and credit; providing for family and medical leave and child care; and combating domestic violence and human trafficking….” However, they state that “American women enjoy opportunities and status not available to most of the world’s women, yet few would dispute that more progress is needed. CEDAW provides an opportunity for dialogue on how to address persistent gaps in women’s full equality, particularly regarding closing the pay gap, reducing domestic violence, and stopping trafficking.” According to the Cities for CEDAW website, at present, nine cities or counties in the U.S. have passed local ordinances to become “CEDAW cities” (or counties); San Francisco, Berkeley, Cincinnati, Honolulu, Los Angeles, Miami-Dade County, Pittsburgh, San Jose and Santa Clara County. The City of Berkeley (population approximately 120,000) is the city closest in population to Palo Alto (population approximately 64,000) which has passed a CEDAW ordinance. It should be noted that the City of Berkeley already had a Commission on the Status of Women, which was designated to serve as the CEDAW oversight body. Its CEDAW ordinance does not include specific outcome City of Palo Alto Page 7 goals, but reiterates city policy and commitments with respect to core CEDAW principles. Around 25-30 cities/counties nationwide have passed local CEDAW resolutions. CEDAW ordinances vary in their scope and approach. Smaller cities have tended to focus on broad goals and statements of support for principles of equity and human rights. Some of the larger cities and the counties, most of which already had staff dedicated to equity programs, have adopted more defined programs, including some or all of the following elements: • Commitment to conducting a gender analysis of City operations (e.g., workforce, programs, budget) • Establishment of an oversight body (task force) to monitor the implementation of a local CEDAW ordinance • Provide funding to support the implementation of CEDAW principles Consideration of forwarding a recommendation to Council on a CEDAW ordinance was discussed at the February 8, 2018 HRC agenda (CEDAW Packet – Staff Report - https://www.cityofpaloalto.org/civicax/filebank/documents/63326, Subcommittee report - https://www.cityofpaloalto.org/civicax/filebank/documents/63325, Public Letters to the HRC - https://www.cityofpaloalto.org/civicax/filebank/documents/63804 While Human Services staff strongly supports gender equality and the sentiment driving the request for a CEDAW ordinance, Human Services staff communicated the following observations, concerns and questions to the HRC during their deliberations: • Gender Equity Goals o What are the community’s goals for gender equity and what actions would be most impactful for them? o What are the HRC’s goals for gender equality and is CEDAW the right mechanism to reach these goals? o Would the City’s efforts be best directed outward at areas of community concern, rather than focusing on internal operations of City government? • Time Commitment and Budget o The commitment of staff time and the budget needed to implement the initial and ongoing work connected to the ordinance could be significant, which could draw attention and resources away from other core functions and priorities. A comprehensive gender analysis of City operations is City of Palo Alto Page 8 beyond the scope and expertise of Human Services staff, and would require considerable time and resources from the City Manager’s Office, Human Resources, ASD, and many other departments. Council will need to consider the appropriate time that this work could be undertaken without competing with other critical projects and priorities. • Building on current approaches o The City does not need an ordinance to conduct a gender equity study of City operations. The City’s Human Resources Department already does periodic checks into gender-based pay equity and makes recommendations for increases when needed. o Other meaningful avenues to impact gender equity exist and should be explored. The HRC discussed the proposed recommendations at great length. There was strong support expressed for the concept of gender equity. Discussion centered on the unknown and perceived amount of work involved in enacting and overseeing an ordinance, setting up and managing a task force, conducting and analyzing a gender equity study, and to whom this responsibility was going to fall. Several commissioners felt that this could overwhelm the HRC and staff. Other discussion centered on th e options for forwarding a resolution vs. an ordinance for Council consideration. Still other commissioners questioned whether the focus of the work of the task force should be inward facing to City operations or outward facing to meet the needs of marginalized women in the community, finally concluding that while the focus could be on the City of Palo Alto as an employer and as a policy maker, there is broader focus on the City as an influencer and community stakeholder. CEDAW framework allows Council to make a determination as to what they would like to accomplish in regards to gender equity. After much discussion, the HRC generally felt it had deliberated the matter to the level of its ability, given the fact that it does not have the authority to analyze or authorize the staff and/or financial resources needed to implement CEDAW, that the decision should be made to forward a recommendation to Council for discussion and decision on whether to pursue a CEDAW ordinance and where the focus should lie. The HRC’s Council Liaison, Cory Wolbach, was present at the meeting and expressed support and encouragement for forwarding a recommendation for the Council’s consideration. The HRC passed a recommendation (6–0), so that Council could enter into a discussion regarding CEDAW, and if affirmed, provide its counsel on the depth and scope of the City’s commitment and resource allocation. Staff continues to have concerns regarding the focus, time commitment and cost City of Palo Alto Page 9 involved in enacting a CEDAW ordinance. Staff highly recommends that if Council does direct staff to study a CEDAW ordinance and return to Policy & Services, that it considers recommending a flexible framework which includes the following: • Limited scope of work • Pre-established length of time for completion, with the ability to revisit on an annual basis to consider staff and financial resources for the coming year before authorizing additional studies. Resource Impact Recommendations 3, 4 and possibly 5 can be pursued with existing staff and within current budgets. Recommendations 1 and 2 will require more time and effort from the City Manager’s Office and City departments that perform relevant work. Depending on the Council’s direction and the nature and scope of any resulting ordinance, Recommendation 6 could be manageable with current staffing and budgets or could require new staff and additional budget allocations. Given these potential implications, Council will need to consider the appropriate time that this work could be undertaken without competing with other critical projects and priorities. Policy Implications The following elements of the 2030 Comprehensive Plan connect to the topic of this staff report. Policy S-1.6 Work with the PAPD to develop effective, transparent law enforcement strategies that protect the privacy and civil liberties of the public and results in a safe community for all people GOAL C-1 Deliver community services effectively and efficiently. Program C1.2.3 Identify barriers to participation in City programming and f acilities across gender, age, socioeconomic and ethnic groups and sexual identity and orientation, as well as mental and physical abilities, and adopt strategies to remove barriers to participation. GOAL C-5 Sustain the health, well-being, recreation and safety of residents and visitors and improve the quality, quantity and affordability of social services for all community members, including children, youth, teens, seniors, the unhoused and people with disabilities. Policy C-5.3 Celebrate diversity in Palo Alto. Policy C-5.7 Implement the Healthy Cities Healthy Community Resolution that supports City of Palo Alto Page 10 healthy social, cultural and physical environments that promote and support well -being and creative expression for ourselves, our families and our community. Attachments: • ATTACHMENT A- HRC RECOMMENDATIONS-final.- 5-7-18 ATTACHMENT A MEMORANDUM March 7, 2018 To: City Council From: Valerie Stinger, Chair Human Relations Commission (HRC) Subject: Policy Recommendations from the HRC in Response to the Council Resolution Reaffirming Palo Alto’s Commitment to a Diverse, Supportive, Inclusive and Protective Community (#9653) Executive Summary The HRC received direction to provide implementations responsive to Council Resolution #9653. After consideration of the needs in the city and assessment of alternative responses, a work plan, including policies and programs, was prepared. Policy recommendations, focusing on (1) immigration and (2) gender equity are recommended to Council in this memo. 1) Refer California State Senate Bill 54 (SB54) – Sanctuary State - to City Attorney to confirm that City’s policies and procedures are consistent with SB54. 2) Refer California State Senate Bill 31 (SB31) - California Religious Freedom Act - to City Attorney to confirm that City’s policies and procedures are consistent are consistent with SB31. 3) Send a letter of endorsement to California State Senator Kevin de Leon in recognition of the City’s commitment to the values expressed in SB54. 4) Send a letter of endorsement to California State Senator Ricardo Lara in recognition of the City’s commitment to the values expressed in SB31. 5) Adopt Amnesty International’s resolution in support of Refugee Resettlement in Santa Clara County. 6) Direct staff to draft a Convention on the Elimination of all forms of Discrimination Against Women (CEDAW) ordinance, that, a. Affirms the City’s commitment to the principles of the United Nations Convention on the Elimination of all forms of Discrimination Against Women, and b. Authorizes a gender analysis and designates a body to conduct and oversee the analysis and its powers, scope and responsibilities. The HRC also acknowledges that to support the proposed programs and policies, we are making extensive demands on staff. Their limitations could constrain our ability to successfully achieve our goals for diversity and inclusion. The HRC relies on and works with staff to carry out these programs, set additional priorities, initiate new work and monitor outcomes. We believe that our ability to continue the work would be enhanced by additional staff, consultant services or interns. We ask that Council recognize the demands on staff to support diversity and inclusion, and we ask that staff and/or consultant services be dedicated to Diversity and Inclusion. Discussion of Recommendations The HRC had responsibility to propose policies and institute programs to validate the principles stated in Council Resolution #9653. The programs complement the policy recommendations and are shown in Attachment 1. Discussion of the policies recommended to Council follows. The Commission would like Council to be aware of the full plan of programs that support Resolution #9653 in the initial phase. Much of the program work in Attachment 1 is underway as the HRC has the capacity to bring forward these programs. It should be noted that these programs represent a start. It is the intent of the HRC to continue our efforts to support the Resolution. It should also be noted that the city measures well on many scales of inclusion and the intent of most proposals is to be proactive and community building, more than corrective. With consideration for your time and priorities, we bring forward for your approval only the policy recommendations. (Full report on subcommittee response on Resolution #9653 presented at 2/8/18 HRC meeting -https://www.cityofpaloalto.org/civicax/filebank/documents/63327). The following recommendations were discussed and voted on at the February 8, 2018 Human Relations Commission Meeting. Recommendations concerning Immigration and Religious Affiliation 1) Refer California State Senate Bill 54 (SB54) – Sanctuary State - to City Attorney to confirm that City’s policies and procedures are consistent with SB54. California State Senate Bill 54, (Text – SB54 - https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB54) known as the “Sanctuary State” bill, would limit state and local law enforcement communication with federal immigration authorities, and prevent officers from questioning and holding people on immigration violations. SB54, (including Chpt. 17.25, California Values Act) curtails the use of re sources to allow mass deportations that separate families; keeps schools, hospitals, court houses safe and accessible, and is aligned with the city’s legislative priority to oppose attempts to undermine rights of any group, whether by federal government; or by coercing states or local government; or by weakening existing laws and enforcement thereof against harassment, discrimination, and hate crimes. The bill went into effect on Jan. 1, 2018. 2) Refer California State Senate Bill 31 (SB31) - California Religious Freedom Act - to City Attorney to confirm that City’s policies and procedures are consistent with SB31. California State Senate Bill 31, (Text SB31 - https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB31) known as the “California Religious Freedom Act,” prohibits a state or local agency from providing or disclosing to federal authorities personally identifying information regarding a person’s religious affiliation when the information is sought for compiling a database of individuals based on religious affiliation, national origin, or ethnicity. SB 31 also prohibits state and local law enforcement from collecting personal information about an individual’s religious beliefs or affiliations except under certain circumstances. SB31, California Religious Freedom Act, prohibits the use of state and local governments to create a Muslim registry. This measure was approved by the Governor on October 15, 2017 and took immediate effect. 3) Send a letter of endorsement to California State Senator Kevin de Leon in recognition of the City’s commitment to the values expressed in SB54. 4) Send a letter of endorsement to California State Senator Ricardo Lara in recognition of the City’s commitment to the values expressed in SB31. Council Resolution #9653 states, “The City of Palo Alto recognizes, values, and will proactively work to ensure the rights and privileges of everyone in Palo Alto, regardless of religion, ancestry, country of birth, immigration status, disability, gender, sexual orientation, or gender identity.” The HRC is recommending that the Council direct the City Attorney to review SB54 and SB31 to confirm that Ci ty policies and procedures are consistent with this new law. The HRC acknowledged that City Attorney review is typically standard operating procedure, but also felt that in this climate, with this legislation it’s a profound statement to visibly confirm that indeed we are following these state laws. Compliance with and endorsement of SB54 and SB31 confirm our commitment to the legislation and to ‘everyone “living, working, and visiting” in Palo Alto, regardless of religion …, immigration status’. Endorsement can communicate that the legislation is consistent with our values and our commitment to actively carry out the elements of the legislation. It is worth noting that subsequent to the HRC vote the Trump administration sued California over immigration laws. ("https://www.nytimes.com/2018/03/06/us/politics/justice-department-california- sanctuary-cities.html") Thus the HRC had no discussion of whether to follow state or federal legislation and the consequences of the decision. 5) Adopt Amnesty International’s resolution in support of Refugee Resettlement in Santa Clara County. Representatives from the local chapter of the human rights organization Amnesty International requested that the HRC forward to Council a resolution in support of refugee resettlement in Santa Clara County. (Refugee Resolution - https://www.cityofpaloalto.org/civicax/filebank/documents/63329). The resolution gives voice to plight of refugees worldwide, including such points as: The world is facing the largest refugee crisis since World War II, with over 21 million refugees, 86% of whom are hosted by developing countries who do not have the resources to adequately support such large numbers 51% of refugees are children Refugees in most urgent need of resettlement are identified based on their vulnerabilities and risk of further exposure to violence and exploitation - including children traveling alone, female-headed households, victims of torture, the physically disabled and members of the LGBT community While the Commission did vote to forward the resolution, there were concerns over what Palo Alto, alone, could realistically accomplish and the symbolic nature of the resolution. These remain. The representatives expressed hope of building countywide commitment for the support of refugee resettlement. Support across the county has not yet been verified. While the HRC generally does not support resolutions considered symbolic in nature, it was acknowledged that symbolic gestures may be warranted at times, especially when communities are motivated to act together. Attempting to address the symbolic nature of the resolution, the HRC passed a recommendation to consider adding refugee resettlement as a priority need during the next Human Services Resource Allocation (HSRAP) funding cycle, if warranted at that funding cycle. Gender Equity 6) Direct staff to draft a Convention on the Elimination of all forms of Discrimination Against Women (CEDAW) ordinance, that a. Affirms the City’s commitment to the principles of the United Nations Convention on the Elimination of all forms of Discrimination Against Women, and b. Authorizes a gender analysis and designates a body to conduct and oversee the analysis and its powers, scope and responsibilities. CEDAW is an international human rights treaty adopted by the United Nations (UN) in 1979 and is considered a comprehensive international agreement on the basic human rights of women. To date, 187 of the 193 UN member states have ratified CEDAW. Iran, Sudan, Somalia, Palau, United States (U.S.), and Tonga have not ratified the treaty. Council Resolution #9653 states, “The City of Palo Alto recognizes, values, and will proactively work to ensure the rights and privileges of everyone ’living, working, and visiting‘ in Palo Alto, regardless of…, gender.” The recommendation to Council includes a statement of values, grounded in a plan of action. Enthusiasm for the process and what could be accomplished exists. It is clear that gender equity is not yet realized, even in progressive Palo Alto. Gender discrimination in Palo Alto, as well as the current political and social climate, highlight longstanding, pervasive, and still unresolved gender equality issues that continue to affect the women of our community, nation and the world. There is a continued need for the City and community to proactively identify where there are opportunities for improvement and to suggest policies and programs, which can be adopted to address gender equality issues specific to the City of Palo Alto. To clarify, the recommendation herein is asking Council to direct staff to draft an ordinance, which first affirms the City of Palo Alto’s commitment to the principles of CEDAW; and second, authorizes a gender analysis and designates who would conduct that. That draft ordinance would return to Council. If approved, it would become law, the CEDAW ordinance. The gender analysis would then be authorized and could proceed. The body authorized to conduct the gender analysis would bring back meaningful recommendations, based on their analysis. With respect to composition of the body, it is recognized that City resources are limited. To augment City resources, the body could be made up in different ways including: (1) using existing staff and budgetary resources, (2) dedicating new staff and budgetary resources, (3) hiring outside consultants, (4) leveraging support from local universities, community groups, stakeholders and experts, or (5) some combination thereof. To assist the body in conducting and/or overseeing the gender analysis, community expertise might well be leveraged. The body would be responsible for directing the study of specific, locally relevant gender study priorities, establishing a work plan, conducting and/or overseeing the gender analysis, and preparing recommendations for policies and programs. The proposed recommendation was supported in public oral comments and discussed at length by the HRC in their February 8, 2018 meeting. (CEDAW Packet – Staff Report - https://www.cityofpaloalto.org/civicax/filebank/documents/63326, Subcommittee report - https://www.cityofpaloalto.org/civicax/filebank/documents/63325, Public Letters to the HRC - https://www.cityofpaloalto.org/civicax/filebank/documents/63804 As noted there was strong support for the concept of gender equity and the CEDAW process, particularly the opportunity for dialogue, flexibility in implementation, focus on local gender issue concerns, and the value of a public commitment. There were also questions about the amount of work, the budget for the work, the mechanism of a binding ordinance, the leadership resources required, and the optimal framework. Staff noted that the commitment of HRC and staff time needed to implement the initial and ongoing work connected to the ordinance are not completely known and look to be quite significant which could draw HRC and Human Services staff away from other core functions and priorities. The Commission’s deliberation centered on the goals and hoped for outcomes from a commitment to the principles of CEDAW and from a gender analysis specific to Palo Alto concerns. Those endpoints contrasted with concern that the resources were neither in place nor available to get the job done efficiently. Taking into account all the elements of the deliberation, the belief in gender equity was strong enough to go to the next step of enquiry. That is, at its core, how would this City move forward on a gender analysis. Balancing enthusiasm and outstanding questions, the HRC passed a recommendation (6–0), so that Council could enter into a discussion regarding CEDAW, and if affirmed, provide its counsel on the depth and scope of the City’s commitment and resource allocation. Attachment 1 Programs in Progress or Under Consideration to Support Council Resolution #9653 These represent the work of the HRC and the Office of Human Services and are included here for information only. GENDER IDENTITY -Collaborate with the County of Santa Clara to conduct a Listening Campaign to understand how to best support LGBTQ youth, the adult and working community, and seniors and friends and family HATE CRIMES -Collaborate with County to ensure that city reporting needs are included in proposed Hate Crime Reporting System -Formalize operational policy for graffiti removal INCLUSIVE PUBLIC ENGAGEMENT -Expand Welcoming America Week programming, with local partners -Investigate a collaboration to institute an Immigrant Leadership Training Program -Host a Community Dinner -Be more strategic in inclusive outreach (investigate ILG models) -Investigate the possibility of a language access policy CITY WIDE DIVERSITY LEARNING -Consider a City/School/Library/Public Art/Children’s Theatre Consortium program focusing on a topic such as the history of Japanese Internment or Holocaust or Racism or Bigotry -Sponsor joint program, e.g. History of Racism or Historical ‘Otherness’ IMPLICIT BIAS -Staff dialogue and training to strive for diversity and better communications GENDER -Explore and consider recommending the strategy for becoming a CEDAW city City of Palo Alto (ID # 9631) City Council Staff Report Report Type: Action Items Meeting Date: 10/1/2018 City of Palo Alto Page 1 Summary Title: Accessory Dwelling Unit (ADU) Ordinance Update & Discussion Title: PUBLIC HEARING: Adoption of an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 18.42.040 Related to Accessory and Junior Accessory Dwelling Units to Clarify or Mod ify Various Provisions Including Setback Requirements for Detached ADU Basements, Allowance for Setback and Daylight Plane Encroachments for Detached ADUs, Bonus Lot Coverage and Floor Area Eligibility, Bonus Floor Area Amount to Match Minimum Unit Size as Established by Building Code, Reduced Height Limit for Detached ADUs Located Within Identified Eichler Tracts, Replacement Parking Provisions as Applicable to JADUs, Allowance for Replacement Parking to be Located Within Driveways Located in Street -side Setbacks, Allowance for Existing Driveways to be Expanded to Accommodate Replacement Parking, Allowance for Noncomplying Structures to be Rebuilt as Part of Conversion to ADU, and Applicable Zoning Districts that Allow ADU Development; Finding the Ordinance Exempt from Review Under the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15061(b)(3); and Discussion of Other Potential ADU -related Regulations. Planning & Transportation Commission Recommended Approval of the Ordinance. From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that the City Council take the following actions to amend the Accessory Dwelling Units regulations: City of Palo Alto Page 2 1. Find the proposed Ordinance exempt from the provisions of CEQA pursuant to CEQA Guidelines Section 15061(b)(3); and 2. Adopt an Ordinance (Attachment A) amending Palo Alto Municipal Code Section 18.42.040, Accessory and Junior Accessory Dwelling Units. Executive Summary On May 8, 2017, City Council adopted Ordinance No. 5412 amending Title 18 (Zoning) of the Palo Alto Municipal Code to implement the new State requirements related to Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU). These new regulations have eased the development requirements for ADUs for property owners and support the creation of additional, more affordable, housing units. With the implementation of the new regulations, the City has seen an increase in the number of ADU permit applications filed. In 2017, 31 ADU applications were submitted for review. For 2018, 26 applications have been submitted so far this year. In previous years, the City had an average of four ADUs reviewed each year. Although local regulations have only been in effect for 13 months, staff has encountered some challenges implementing the current code and proposes revisions to address these concerns. On April 25, 2018, the Planning and Transportation Commission (PTC) reviewed and recommended approval of the proposed ordinance with a 5 -0-2 (Lauing, Riggs absent) vote. This report also discusses Council direction to make ADUs available to low and moderate income households and options to address illegally established AD Us. Background In October 2015, the City Council approved a Colleagues Memo that directed the PTC to review the Palo Alto Municipal Code (PAMC) related to ADUs and recommend strategies to increase production of these units. Subsequently, the PTC conducte d two study sessions in January and July 2016 (reports #6462 & #6944), just prior to the State of California’s adoption of ADU and JADU1 legislation in September 2016. In response to the state ADU regulations, the City prepared a draft ordinance to incorporate the mandatory state requirements and some optional provisions with the existing local regulat ions. The PTC reviewed the ordinance on November 30, 2016 (report #7368) and made recommendations. In March 2017, the City Council held its first public hearing on ADUs (report #7517) and discussed the ordinance and directed certain modifications. On April 17, 2017, the Council adopted the ADU ordinance with further refinements (reports #7921 & #8048), which became effective on June 8, 2017. The City Council also directed staff to provide a quarterly report on ADU permits and to conduct a study 1 The establishment of Junior Accessory Dwelling Units (JADU) as a permitted use was not required by state law and was left to the discretion of the local jurisdiction. With the local adoption of the ADU regulations in April 2017, the City Council allowed for these JADU units in Palo Alto. City of Palo Alto Page 3 session with the PTC to analyze the results of the ordinance; the study sessions were held on December 13, 2017 (meeting minutes) and January 10, 2018 (report #8773 & meeting minutes). Prior to the implementation of the City’s ADU ordinance, the State regulations that became effective on January 1, 2017 governed all ADU permit applications submitted for review in the City. Once the City’s ordinance became effective on June 8, 2017, all ADU permit applications not already approved were subject to the new local regulations. As of the preparation of this report, the City has reviewed 54 ADU permit applications since the State and local regulations were implemented. In 2017, the City received 31 applications to establish ADUs, which exceeds the average of four units per year that the City has historically processed. For 2018, the City has received 26 ADU applications to date. As part of the ADU code update process, staff has set up a project webpage (http://cityofpaloalto.org/gov/depts/pln/advance/accessory_dwelling_units_regulations_updat e.asp ) to provide information to the public. Updated State Regulations Effective January 2018 In 2017, the City adopted comprehensive regulations related to ADUs to conform to state law that became effective on January 1, 2017. Subsequently, the State le gislature passed two additional bills AB 494 and SB 229, signed by the Governor in September 2017, clarifying the previously adopted ADU legislation. On February 26, 2018, the City Council adopted Ordinance No. #5430 that included modifications to remain consistent with State law and minor clarifications. Those State law changes incorporated into the Ordinance were (1) clarification that an ADU may be constructed on sites with either an existing or proposed single-family dwelling unit, and (2) a requirement that ADUs established through conversions of space within an existing single-family home or an existing accessory structure, be allowed in any zoning district where single-family residential is an allowed use. Staff is aware that other ADU-related amendments are being considered by the State legislature in other pending bills (e.g. AB-2890). Staff will address any adopted changes once any bills have been adopted. Typically the State regulations take effect on January 1 of the following year, so Council can expect staff to return prior to that time to update the ADU regulations accordingly. Discussion Since the City adopted new ADU regulations in 2017, staff has reviewed over 50 applications and has had many more conversations with property owners regarding ADUs . It is from this experience that staff has prepared and recommends approval of the attached ordinance. The local ADU regulations have been in place for a relatively short time. As more time passes and City of Palo Alto Page 4 more projects are reviewed, staff will be able to provide additional feedback and analysis of the ADU provisions, but it is clear that the adopted 2017 regulations have increased the local production of ADUs. Planning and Transportation Commission Review Over the course of four public hearings, with two study sessions and two action meetings2, the PTC discussed and reviewed the proposed code clarifications as reflected in Attachment A and discussed in this report. At its meeting on April 25, 2018, the PTC voted (5-0) to recommend approval of the draft ordinance with a few minor amendments. In addition to discussing the staff proposed revisions, the PTC discussed ideas for additional code revisions. T wo of these ideas received majority support of the PTC. The first idea was to include a code change for the allowance of an eave on a detached ADU to encroach into the setback (and this is reflected in the attached ordinance). The second idea was for Council to consider a lower daylight plane for detached ADUs, in order to increase the access to daylight for units built in the rear yard of adjacent properties (and this is not included in the ordinance, but is described later in this report). Additional det ails of the PTC’s deliberations are provided in the meeting minutes (see Footnote 2 for link). Summary of Proposed ADU Ordinance Revisions 1. Clarify the Applicable Zone Districts that Allow ADU Development The proposed ordinance would provide greater clarity on which zoning districts allow for development of ADUs and JADUs. No policy change is associated with this amendment. 2. Clarify the Setback Requirements for Detached ADU Basements The setback requirement for detached ADUs is six feet from the rear and side property lines. This six foot rear yard setback allows the detached ADU to be placed within the standard rear yard setback that is applicable to the primary residence, which is 20 feet in R -1 zoned properties. The municipal code generally prohibits basements in the required rear and side yards and, while detached ADUs are permitted in the rear yard setback, the code is unclear as to whether ADU basements are similarly permitted in the rear yard. The attached ordinance clarifies this with an additional sentence “No basement shall encroach within a required rear yard setback.” 2 PTC Hearing 03/28/2018 staff report and meeting minutes PTC Hearing 04/25/2018 staff report and meeting minutes City of Palo Alto Page 5 The PTC recommends no basements be allowed in the standard rear yard setback. Accordingly, only detached ADUs located outside of required rear yard setback would be permitted to have a basement, and the basement area is included in the ADU maximum floor area calculation . The PTC noted concerns regarding impacts to trees and dewatering as reasons supporting this prohibition. If Council concurs, no change is required to the attached ordinance. If, however, Council supports basements for rear yard ADUs, this direction would need to be provided to staff for inclusion in the ordinance for final adoption at the second reading. The Council could direct staff to delete the sentence “No basement shall encroach into a required rear yard setback”, which is found in paragraph D (Setbacks and Daylight Plane) under Item 9 (Additional Development Standards for Detached Accessory Dwelling Units). However, Council may consider requiring some basement setback (a greater setback than the allowable above-grade setback). Trees and Dewatering In response to the concerns raised by the PTC, staff would note that there are existing regulations in place to address tree protection and dewatering issues. T he City’s tree protection measures apply to all development in the City, including ADUs. All ADU permits submitted for review are screened for impacts to protected trees. In recent years, concerns have been raised that temporary construction-related groundwater dewatering may be wasting water, potentially damaging structures, trees and vegetation, and depleting or altering the flow of groundwater. In response, the City established new requirements in February 2016 designed to minimize and standardize the p rocess of pumping and discharge of groundwater from dewatering of below ground structures (e.g., basement or parking garage) during construction. These regulations apply to an ADU with a basement. Note: A pending State bill (AB-2890), if passed, would establish a maximum four foot side and rear setback for newly developed ADUs. 3. Clarify Allowable Setback and Daylight Plane Encroachments for Detached ADUs In the discussions with the PTC on the setbacks for basements, attention was given to the possible projections that could be allowed into the required setbacks for detached ADUs. Several commissioners expressed strong support for allowing the building eave to encroach into the required setback and the PTC included this direction in its motion to recommend approval of the ordinance. Although it was not specifically discussed by the PTC, staff recommends that eaves also be allowed to extend into the daylight plane, as reflected in the draft ordinance (under Item 9 paragraph D). For eaves, these two development standards, setbacks and daylight plane, often have a causal effect on one another. If Council supports adding some flexibility for setback City of Palo Alto Page 6 encroachments for eaves, the same flexibility could be applied to eaves encroaching, to a limit extent, into the daylight plane. 4. Clarify Bonus Lot Coverage and Floor Area Eligibility3 The general intent of providing bonus lot coverage and floor area is to give some development flexibility for existing developed sites that may be at or near the related maximums allowed. With the current bonus provisions, the additional lot coverage needed for an ADU would be 100% exempt, and up to an additional 175 square feet (SF) of floor area would be allowed. The code specifically states that these bonuses are given when development of an ADU is on a site “with an existing single-family residence.” Staff believes this takes into consideration that existing developed lots upon which ADUs could not be established previously, but now otherwise could include ADUs, may have insufficient lot area to accommodate the ADU. The bonuses allow flexibility for existing developed sites to promote this housing alternative. In contrast, staff believes the bonuses were not intended for new construction of single family homes. With new development, the lot is not or no longer constrained by existing improvements, floor plans, other accessory structures, and there are options for designing and incorporating an ADU on the lot without the need for the bonus lot coverage or floor area. However, in staff’s experience, some property owners who are building completely new homes also want to take advantage of these bonuses. Many new homes maximize permitted floor area and the interest for additional floor area sets forth a two -step process whereby someone can build a new home and receive final approval, thus becoming an “existing home,” and then file plans for an ADU and an additional 175 SF. If it is Council’s intent to apply these exemptions to existing homes (before the new ADU regulations were adopted), then an amendment to the code is required to clarify this intent. If, however, the Council determines that new construction qualifies for the exemption, the code should also be amended to eliminate the two-step process and more explicitly state the intent of this provision. As drafted in the attached ordinance, lot coverage and floor area bonuses would apply only to properties with existing homes or proposed homes with a valid building permit as of January 1, 2017, which is when the State adopted the ADU regulations. If the Council’s intent is different, direction should be provided in its motion and staff would draft corresponding changes to the ordinance for final adoption at the second reading. 3 Note: In the following discussion section 5, staff recommends increasing the 175 square foot floor area exemption bonus up to 220 square feet. City of Palo Alto Page 7 Note: A pending State bill (AB-2890), if passed, would fully exempt ADUs from a site’s floor area and lot coverage calculation. 5. Adjust Bonus Floor Area Amount to Match Minimum Unit Size as Required by Building Code The current ADU and JADU regulations establish a maximum unit size for ADUs and JADUs , but do not expressly address a minimum unit size. With respect to ADUs, the code and state law both provide that an ADU includes an “efficiency unit” as defined under state law. Based on the current California Building Code requirements (Section 1208.4) for an efficiency unit, the minimum size for a new ADU is 220 SF, absent adoption of a local ordinance reducing the minimum size (for example to 150 SF). For JADUs, the minimum size is based on California Residential Code requirements for a minimum room size (Section R304.1), currently 70 SF. Staff will continue to rely on the relevant building codes for determining the minimum unit size. As discussed in the above section, ADUs may qualify for a 175 SF floor area bonus, but this additional floor area does not fully cover the 220 SF minimum ADU unit size requirement. Because of this, there may be instances where an owner is unable to establish an ADU on their property unless a greater allowance is given for bonus floor area . To account for this discrepancy, staff, with PTC support, recommends the bonus floor area be increased up to a maximum of 220 SF. This change is found on page 2, Section 1 of the Ordinance (Attachment A). Staff’s recommendation is to: a. Add clarifying language to the code for ADUs and JADUs th at states the minimum unit size shall be based on the respective building code requirements. b. Add revised language to the code for ADUs (and not JADUs) that states that the allowed bonus floor area shall match the minimum unit size as required by the current building codes. Based on today’s building code requirements, the bonus floor area would therefore increase by 45 SF, expanding it from 175 to 220 square feet. Note: Please see note for #4 above. Additionally, as this discussion relates to unit size, th e State is considering a maximum unit size of not less than 800 square feet; this would have the potential to impact the existing 600 square foot maximum for attached ADUs. 6. Reduce the Height Limit for Detached ADUs Located Within Identified Eichler Tracts On January 18, 2018, at a community meeting regarding the draft “Eichler Neighborhood Design Guidelines,” staff received input regarding reducing the height of ADUs in Eichle r tracts. The current ADU height limit for a detached unit is 17 feet and one story. The eaves of a one - story Eichler home are low due to the slab -on-grade construction that was used; typical one- story Eichler homes are nine to 11 or 12 feet tall. Limited follow up discussion took place with City of Palo Alto Page 8 the Historic Resources Board (HRB) in meetings on January 25 and February 22, 2018, which resulted in a recommendation that ADUs should not exceed the height of the primary home on the lot. There are 31 identified single family Eichler Tracts (map) that contain approximately 2,700 properties. The proposed ordinance includes new height restrictions of 12 feet for detached ADUs and that attached ADUs be no taller than the primary residence at the area of attachment. The intent of the lower height limit is to reflect the size and type of construction typical of these properties, respect neighborhood character and preserve the sense of openness and privacy enjoyed by residents in these tracts. This action would also be consistent with the “Eichler Neighborhood Design Guidelines” that was approved by Council on April 2, 2018. During the PTC discussion, two of the six commissioners present did not support the proposed reduced height limit within the Eichler Tracts. One commissioner expressed the position that the height limits should be consistent for all ADU development; and the other expressed a desire to have more flexibility with the height provided it was consistent with the Eichler Neighborhood Design Guidelines. Note: A pending State bill (AB-2890), if passed, would establish a height limit of no less than 16 feet for detached ADUs. 7. Clarify that the Replacement Parking Provisions Also Apply to JADU Development A JADU is only permitted within the existing building envelope of the primary dwelling unit, and must, at a minimum, utilize one existing bedroom. It could be possible that a JADU incorporates a portion of a garage for the new living unit. In this circumstance, the current provisions are not clear about replacement parking requirements for the primary residence, if all or a portion of an existing garage was utilized for the JADU. To address this, staff recommends that the same replacement parking provisions for ADUs also be applied to JADUs. Specifically, this approach requires any required covered parking to be re-established on site, but, consistent with State law, gives the owner flexibility as to how to provide that required parki ng space in terms of location and whether it is covered or uncovered. Similar to the City’s local provision for ADUs, JADUs by State law do not require any parking. 8. Allow Replacement Parking to be Located Within Driveways Located in a Street-side Setback State law specifies that required replacement parking (i.e. for the primary home) may be “located in any configuration” on the subject property. The existing regulations allow replacement parking to be located in the front yard setback on an existing dri veway as an uncovered space. In the case of corner lots, the code is silent on allowing parking in the street side setback. Many corner lots have just the one driveway located on the street side ; allowing replacement parking in this location on a driveway would be a reasonable accommodation for City of Palo Alto Page 9 these types of lots. Staff suggests that replacement uncovered parking be allowed in the street side setback similar to what has been permitted for the front yard setback. In addition, for the street-side replacement parking only, a provision has been added to allow the Director the discretion to modify the required parking space dimensions, if necessary to accommodate parking when appropriate. This flexibility is proposed because in the R-1 zone, the street-side yard setback (i.e. 16 feet) does not meet the required parking space length of 17.5 feet. This limited discretion further supports ADU development, allows for site specific review, and reduces the need for exception requests through the Variance process. 9. Allow Existing Driveways to be Expanded to Accommodate Replacement Parking As mentioned above, the current ADU provisions allow required replacement parking for the primary dwelling unit to be located within an existing driveway located within the front yard setback. In the review of ADU permits, some homeowners have wanted to expand the existing driveway to accommodate more parking, which the ADU regulations do not allow. Removing the ADU development from the scenario, today a homeowner is permitted to expand the existing driveway without City permits, providing it meets code provisions (i.e. driveways and walkways may be established subject to paving permeability requirement). As a work-around to get a larger driveway, an ADU applicant can first complete a driveway expansion, which then becomes ‘existing,’ and then submit for the ADU permit with plans reflecting the ‘existing’ expanded driveway. In order to facilitate streamlining the permit process, staff recommends modifying the ADU requirements to allow the expansion of existing driveways in the front and street-side yards to accommodate the required replacement parking. 10. Clarify When Non-complying Accessory Structures May be Rebuilt to Convert to an ADU The ADU regulations permit the conversion of exist ing legal structures to establish an ADU. Staff has received ADU proposals that include the conversion of existing non-habitable space, such as a garage (attached and detached) or accessory structure, which had a legal non - complying element (e.g. height too tall, daylight plane encroachment, setback encroachment). As already mentioned, providing these are existing legal structures, they can be converted to ADUs. The issue that staff did not anticipate when the local ADU regulations were prepared was that these existing non-complying structures are sometimes deemed structurally unsound for establishing a living unit by building code standards. In order to be building code compliant, the structure must be demolished, wholly or partially, and rebuilt. The general zoning rule is that once a non-complying structure is removed, all new construction must meet current applicable codes (PAMC Section 18.70.100(b) Noncomplying facility – Replacement). City of Palo Alto Page 10 The intent of the ADU regulations, however, is to allow the conversion of existing structures to create living units, including the conversion of garages and similar structures. At the PTC study session, the options the PTC initially discussed were at the opposite ends of the spectrum; at one end, the PTC noted that all new rebuilds, regardless of circumstance, should be fully zoning compliant, and at the opposite end, the PTC noted the City should allow reconstruction of non- complying structures, or portions thereof - a a “rebuild” that retains the non-complying condition. When the PTC took action on the draft ordinance, they supported the language as proposed by staff (and this is reflected in the attached ordinance), which allows reconstruction. Where the need to rebuild existing accessory structures has been presented to staff by ADU applicants, reconstruction in place has been approved. The proposed ordinance continues to advance this concept but also includes some specific parameters to ensure there is no increase in the degree of the non-conformity, and requires a minimum three-foot setback from interior side and rear property lines. Alternative approaches to this issue are to require the rebuild to be code compliant, consistent with PAMC Section 18.70.100(b), or establish other parameters where a rebuild could be permitted. Note: A pending State bill (AB-2890), if passed, would prohibit the correction of nonconforming conditions as a requirement for ministerial approval. Other Considerations Removed Amendment – ADUs and Maximum 50% Rear Yard Coverage In the draft Ordinance the PTC reviewed, staff included a clarification that ADUs not be considered in the calculation of R-1 maximum rear yard coverage and the PTC supported the clarification. After additional consideration of this proposed amendment, staff determined the proposed clarification is not necessary. Once an accessory structure is converted to an ADU, the accessory structure regulations (including the one referenced in this paragraph ) would no longer be applicable. As background information, the R-1, R-2, RE, and RMD development standards limit accessory structure coverage to no more than 50% of a required rear yard [e.g. PAMC Section 18.12.080(b)(6)]. There has been some debate as to whether ADUs should be subject to this provision, which could be problematic for some property owners. Existing (and retained) garages, along with other accessory structures located on a parcel, could restrict a new detached ADU from being established on some properties if the 50% coverage restriction included ADU coverage. Accessory structures, once converted to ADUs,are no longer considered to be accessory structures (e.g. tool sheds and detached garages); they have become habitable, accessory dwelling units, and therefore staff does not applied this 50% coverage restriction to ADUs. Consider Reductions to the Daylight Plane City of Palo Alto Page 11 The PTC motion to recommend approval of the draft ADU ordinance included a recommendation that the City Council consider a lower daylight plane (DLP) limit for detached ADUs. This recommendation has not been included in the draft ordinance, Attachment A. Currently, a detached ADU is subject to a daylight plane measured at the property line at eight feet high with a slope of 1:1 (45 degrees) to a maximum height of 17 feet, as shown with the blue dashed line (top line) in Figure 1. The concern raised by the PTC about the DLP was its impact on the access to daylight for ADUs when developed side by side on two adjacent lots; these two ADUs would be separated by a minimum of 12 feet (six foot setbacks on each property). In Figure 1, there are three DLPs shown in two ADU scenarios, one with a gable r oof and one with a hip roof. The blue line (top) represents the current requirement with a 1:1 ratio for the angle; the green line (middle) represents a 1:2 ratio for the angle; and the red line (bottom) represents a 1:3 ratio for the angle and a 12 foot height limit (this is the current DLP and height restrictions for detached accessory structures on R-1 lots). The graphic provided is to help visualize the various DLPs and better facilitate the Council’s discussion on this topic. City of Palo Alto Page 12 Figure 1: Daylight Plane Examples on a Gable and Hip Roof ADU City Council Follow-up Discussion Items At the March 7, 2017 Council meeting regarding the ADU regulations, Council directed staff to return in 2018 with additional information regarding the two issues below. The PTC discussed these issues and their comments are provided below. Options to Make ADUs Available to Moderate or Low Income Residents City Council directed staff to explore further the possible options to make ADUs accessible to moderate or low income residents, seniors, people with disabilities, or public employees. This City of Palo Alto Page 13 type of program reflects the larger concern regarding the lack of affordable housing in Palo Alto and the greater Bay Area. One comment staff has heard from property owners is that the development impact fees to establish an ADU are too high, nearly $10,000 per unit. These fees have been a concern for many wanting to construct ADUs, but are assessed to off-set the impact new housing units have on city services, parks, libraries and other community programs. For some property owners, it may be worthwhile to deed restrict their ADU as affordable housing for a period of time (for example 10 years) in exchange for reduced or waived impact fees. In such circumstances, a property owner may be less interested in generating rental income and more interested in providing independent living facilities for a relative with disabilities or aging parents. For others, reducing or waiving the impact fees would not likely be a sufficient motivator to deed restrict the ADU to a certain income level. The City of Pasadena recently implemented a similar program. Another possible approach would be to partner with an organization that can provide financing in exchange for affordability. As an example, Housing Trust Silicon Valley, a local non-profit organization based in San Jose, is currently developing a pilot program that would provide low - cost flexible loans to homeowners for the purpose of constructing an ADU in exchange for their agreement to rent the units at affordable costs to low- and middle-income earners. The Housing Trust’s funding “will be used to make capital loans to homeowners — who can easily spend $100,000 or $200,000 on ground-up construction of an ADU. But the Housing Trust also intends to create an educational outreach program — involving classes, workshops and technical assistance — to help homeowners navigate the ADU process.”4 The partnership option, where the City contributes funding, ideally would place responsibility of the program management on the agreeable non-profit organization. Given sufficient staff and financial support, the City could also offer technical and educational assistance. For example, the City could develop prototype designs for ADUs that can be readily utilized for the permit process and can be approved more expeditiously. To be clear, however, staff is not sufficiently resourced at this time to take on this responsibility without adjustment to the department’s work program. The PTC’s comments were generally in line with the above noted options. There was majority support for providing a fee waiver in exchange for a long term commitment (10 -15 years) to provide affordable housing. Other comments in cluded: 4 The Mercury News “Bank funds ‘granny’ units project in affordable housing experiment for San Jose, L.A.” October 9, 2017: http://www.mercurynews.com/2017/10/09/an-affordable-housing-experiment-for-san-jose-and- los-angeles-bank-funds-pilot-project-to-help-build-granny-units/ City of Palo Alto Page 14 • Perform additional financial analysis to understand the impacts of waiving fees. • Establish a few ADU template plans that provide an “off the shelf” approvable project. • Create partnership program that identifies architects who specialize in ADUs w ho can be engaged by home owners to streamline the permit review process. • Allow an opt-out provision for homeowners that no longer want to continue to provide their unit as affordable and require payment of fees that were waived. • Utilize a third party (e.g. Palo Alto Housing) to administer the program. The State was considering eliminating all development impact fees charged by local agencies and school districts, but these amendments, at the time of this report, did not have support to move forward. Strategies for Legalizing Illegally Constructed ADUs As with the item above, on March 7, 2017 Council directed staff to return in 2018 with options and discussion of mechanisms to bring existing unpermitted ADUs into compliance, including when existing ADUs do not meet the new standards. There are a few cities in the Bay Area that have implemented protocols to legalize illegal ADUs. These cities include San Francisco, Santa Cruz, and Oakland. Generally, the unpermitted units are required, at a minimum, to be building code compliant for all health and safety concerns, and then special consideration was given to other non-complying development standards (e.g. setbacks, height, lot coverage, etc.). Staff has considered what could be an appropriate method to review and support the legalization of unpermitted ADUs. The City currently has a Home Improvement Exception (HIE) process that could be utilized for this purpose; granting an HIE requires specific findings to be made. The City would require that the unit be compliant with all life safety standards as required by the building codes and then, on a case -by-case basis, review the existing zoning conditions to determine what is appropriate for the project. Other than the size limitation, the Director would have the discretion to waive development standards using the HIE review process to accommodate legalization of the unit, providing it is deemed safe for habitation and the project meets HIE findings. The overall objective would be to allow an ADU that is safe f or habitation and would not be considered a nuisance. Such programs, however, can create other challenges that should be considered. Illegal units that cannot meet building codes or are not approved through a City process would have to be removed and existing tenants would be displaced. Illegally established ADUs may cost too much to be structurally upgraded, resulting in further displacement. Program implementation is another significant consideration. The Council would need to consider whether these unit s are addressed on a case by case basis when brought to the City’s attention, or if there is a brief City of Palo Alto Page 15 amnesty period whereby owners of illegal units could seek permits to legalize these units. Again, it is possible that not all units could be approved. And, the administrative time establishing and following through on such a program would be significant. Presumably, building permit and HIE review fees would cover the cost of staff time, but this would take time away from staff time for processing other applications. The PTC did not have any additional suggestions on how to approach this issue. They did express concerns about the displacement of residents, and about the importance of addressing life safety conditions. There was an overall sentiment that tryi ng to address this issue was complex and required a sensitive strategic approach. As noted in the earlier discussion in section #10 regarding non-complying accessory structures, the State is considering prohibiting the correction of nonconforming conditio ns as a requirement for ministerial approval. If approved, this State regulation could have a direct impact on this discussion. Based on existing resources and pending State legislation, staff encourages Council to defer making any final determinations on this topic until more information is gathered and decisions are made about the planning department’s work program for next year. Policy Implications The proposed ordinance is consistent with the Comprehensive Plan provisions and would advance related housing element programs. The Comprehensive Plan emphasizes the importance of the City’s residential neighborhoods and the quality of life for residents. Policy L - 2.3 of the Land Use and Community Design Element emphasizes the need to allow and encourage diversity of the City’s housing stock and supports ADU development. Additionally, the Housing Element provides specific goals and programs to encourage ADU development. Goal H1 directs the preservation of the unique character of the city’s residential neighb orhoods and Programs H1.1.2 and H3.3.5 encourage modifying existing second unit development standards in the Zoning Code, such as lowering the minimum lot size and allow for increased floor area, in order to facilitate the creation of additional ADUs while maintaining neighborhood character and increasing the City’s affordable housing supply. Resource Impacts The proposed ordinance is not anticipated to have any resource impacts. Building permits would be required for new ADUs and JADUs and the associated building permit fees would be collected for the review/permitting process. Timeline City of Palo Alto Page 16 With Council approval of these revisions or further modifications on the first reading, the second reading would be scheduled as a consent calendar review for adoption. Following the second reading, the ordinance would become effective 31 days after adoption. Environmental Review The proposed code amendments have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the proposed amendments have been determined to be exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3) (Review for Exemption) because the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that the activity in question may have a significantly effect on the environment. Attachments: Attachment A: Draft Ordinance (DOCX) NOT YET APPROVED 1 ORD 2018-08-27 ADU Amendment Minor Revisions Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Title 18 (Zoning) of the Palo Alto Municipal Code to Amend Requirements Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Section 18.42.040 (Accessory and Junior Accessory Dwelling Units) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read as follows: 18.42.040 Accessory and Junior Accessory Dwelling Units The following regulations apply to zoning districts where accessory dwelling units and junior accessory dwelling units are permitted. (a) Accessory Dwelling Units (1) Purpose The intent of this section is to provide regulations to accommodate accessory dwelling units, in order to provide for variety to the city's housing stock and additional affordable housing opportunities. Accessory Dwelling Units shall be separate, self- contained living units, with separate entrances from the main residence, whether attached or detached. The standards below are provided to minimize the impacts of accessory dwelling units on nearby residents and throughout the city, and to assure that the size and location of such dwellings is compatible with the existing or proposed residence on the site and with other structures in the area. (2) Applicable Zoning Districts The establishment of an accessory dwelling unit is permitted in the following zoning districts when single family residential is a permitted land use: Single-Family (R-1), including subdistricts; Two Family Residential (R-2); Residential Estate (RE); Two Unit Multiple Family Residential (RMD); Open Space (OS); Multiple Family Residential (RM); and Planned Community (PC). (2)(3) Minimum Lot Sizes A. In the R-1 district and all R-1 subdistricts, RE district, R-2 district, and RMD district, and properties zoned Planned Community (PC) where single-family residential is an allowed use, the minimum lot size for the development establishment of an accessory dwelling unit is 5,000 square feet. B. In the OS District, the minimum lot size for the development establishment of an accessory dwelling unit is 10 acres. (34) Setbacks and Daylight Plane NOT YET APPROVED 2 ORD 2018-08-27 ADU Amendment Minor Revisions A. Except as otherwise provided in this section, accessory dwelling units shall comply with the underlying zoning district’s setbacks, including daylight plane requirements. B. Notwithstanding subsection (A) above, no setback shall be required for an existing garage that is converted to an accessory dwelling unit, except as provided in subsection (a)(56) below. C. In districts permitting second story accessory dwelling units, a setback of five feet from the side and rear lot lines shall be required for an accessory dwelling unit constructed above a garage. (45) Lot Coverage/Floor Area Ratio A. An accessory dwelling unit shall be included in the lot coverage and floor area ratio FAR requirements applicable to the parcel. B. Exceptions: i. Lot Coverage. When the development establishment of an accessory dwelling unit on a parcel with an existing single family residence that was legally permitted and existing or proposed with a valid building permit as of January 1, 2017, would result in the parcel exceeding the lot coverage requirement, the accessory dwelling unit shall not be included in the calculation of lot coverage applicable to the property, so long as the parcel meets the underlying zoning district’s minimum lot size requirement or is substandard by no more than ten percent (10%) of the underlying zoning district’s minimum lot size requirement. ii. Basements FAR. In the R-1 district and all R-1 subdistricts, basement space used as an accessory dwelling unit, or portion thereof, shall not be included in the calculation of floor area for the entire site, providing the measurement from first finished floor to grade around the perimeter of the building is no more than three (3) feet. iii. Additional Floor AreaR. When the development of a new one-story accessory dwelling unit on a parcel with an existing single family residence that was legally permitted and existing or proposed with a valid building permit as of January 1, 2017, would result in the parcel exceeding the maximum floor area ratio, an additional 220 175 square feet of floor area above the maximum amount of floor area otherwise permitted by the underlying zoning district shall be allowed. This additional floor area shall be permitted only to accommodate the development of the accessory dwelling unit and shall not be applied to the primary residence. (56) Conversion of Space in Existing Single Family Residence or Existing Accessory Structure NOT YET APPROVED 3 ORD 2018-08-27 ADU Amendment Minor Revisions Notwithstanding the provisions of subsections (a)(23), (a)(34), (a)(45), (a)(78) and (a)(89), in the R-1 district and all R-1 subdistricts, the RE, R2, RMD and OS districts, and properties zoned RM or Planned Community (PC) where single-family residential is an allowed use, an aAccessory dDwelling uUnit shall be permitted if the unit is contained within the existing space of a single-family residence or an existing accessory structure, has independent exterior access from the existing residence, and the side and rear setbacks are sufficient for fire safety, and if the accessory dwelling unit conforms with the following: i. For the purposes of this subsection (6), the portion of the single-family residence or accessory structure subject to the conversion shall be legally permitted and existing as of January 1, 2017. ii. Notwithstanding the allowance in this section, only one accessory dwelling unit or junior accessory dwelling unit may be located on any lot subject to this sectionConversion of an accessory structure to an accessory dwelling unit may require rebuilding or substantial renovation to comply with the California Code of Regulations Title 24, as adopted by the City of Palo Alto. In such instances, and where the existing accessory structure does not comply with applicable accessory dwelling unit development standards in the zoning district, the structure may be renovated or rebuilt, provided that: A. If the existing structure does not comply with the applicable development standards for accessory dwelling units in the zoning district, the renovated or rebuilt structure shall not increase the degree of non-compliance, such as increased height or size, or further intrusion into required setbacks; B. The renovated or rebuilt structure provides a minimum three foot setback from any interior side and rear lot lines, and 16 foot setback from any street side property line, if applicable; and C. The renovated or rebuilt structure shall comply with subsection (a)(7), below, pertaining to privacy requirements. D. Nothing in this subsection (a)(6)(ii) shall restrict or prevent a renovated or rebuilt structure from being designed to achieve or improve compliance with the development standards applicable to an accessory dwelling unit in the zoning district. iii. No new or separate utility connection shall be required between the accessory dwelling unit and utility service, such as water, sewer, and power. iv. The accessory dwelling unit shall comply with the provisions of subsections (a)(67), (a)(910), and (a)(1011). v. New floor area may be added to a space converted in accordance with this subsection (a)(6) and shall comply with the all regulations set forth in subsection (a), including but not limited to setbacks, maximum accessory dwelling unit size, and height. NOT YET APPROVED 4 ORD 2018-08-27 ADU Amendment Minor Revisions (67) Privacy Any window, door or deck of a second story accessory dwelling unit shall utilize techniques to lessen views onto adjacent properties to preserve the privacy of residents. These techniques may include placement of doors, windows and decks to minimize overview of neighboring dwelling units, use of obscured glazing, window placement above eye level, and screening between the properties. (78) Additional Development Standards for Attached Accessory Dwelling Units A. Attached accessory dwelling units are those attached to the main primary dwelling. All attached accessory dwelling units shall be subject to the additional development requirements specified below. B. Attached unit size counts toward the calculation of maximum house size. C. Unit Size: The maximum size of an attached accessory dwelling unit living area, inclusive of a habitable basement, shall not exceed 600 square feet and shall not exceed 50% of the proposed or existing living area of the primary existing dwelling unit. The accessory dwelling unit and any covered parking provided for the accessory dwelling unit shall be included in the total floor area for the site, but the covered parking area is not included in the maximum 600 square feet for attached unit. Any basement space used as an accessory dwelling unit or portion thereof shall be counted as floor area for the purpose of calculating the maximum size of the accessory unit. The minimum unit size shall be established consistent with the Building Code. D. Maximum height (including property in a special flood hazard zone): One story and 17 feet, or no taller than the primary residence at the area of attachment if located in an Eichler Tract identified in the adopted Palo Alto Eichler Neighborhood Design Guidelines. However, in the RE District attached aAccessory dDwelling uUnits may be two stories and 30 feet. In the OS zoneDistrict, attached Aaccessory Ddwelling Uunits may be two stories and 25 feet. E. Separate Entry Required for Attached Units: A separate exterior entry shall be provided to serve an accessory dwelling unit. F. Except on corner lots, the accessory dwelling unit shall not have an entranceway facing the same lot line (property line) as the entranceway to the main dwelling unit unless the second entranceway is located in the rear half of the lot. Exterior staircases to second floor units shall be located toward the interior side or rear yard of the property. G. If covered parking for an accessory dwelling unit is provided in the RE zone, the maximum size of the covered parking area for the accessory dwelling unit is 200 square feet. (89) Additional Development Standards for Detached Accessory Dwelling Units NOT YET APPROVED 5 ORD 2018-08-27 ADU Amendment Minor Revisions A. Detached accessory dwelling units are those detached from the main primary dwelling. All detached accessory dwelling units shall be subject to the additional development standards specified below. B. The maximum size of the detached accessory dwelling unit living area, inclusive of a habitable basement, shall be 900 square feet. and the minimum unit size shall be established consistent with the Building Code. i. The accessory dwelling unit and any covered parking shall be included in the total floor area for the site, but the covered parking area is not included within the maximum 900 square feet for detached unit. ii. Any basement space used as an accessory dwelling unit or portion thereof shall be counted as floor area for the purpose of calculating the maximum size of the accessory unit. C. Maximum height (including property in a special flood hazard zone): one story and 17 feet, or one story and 12 feet, if located in an Eichler Tract identified in the adopted Palo Alto Eichler Neighborhood Design Guidelines. D. Setbacks and Daylight Plane: nNotwithstanding subsection (a)(34)(iA), a detached accessory dwelling unit may be located in a rear yard, but must maintain a minimum setback of six feet (6’) from the interior side and rear property lines and sixteen feet (16’) from a street side yard. No basement shall encroach into a required rear yard setback. No portion of a building may encroach into a daylight plane beginning at a height of eight feet (8’) at the property line and increasing at a slope of one foot (1’) for every one foot (1’) of distance from the property line. a. No projections, such as but not limited to windows, doors, mechanical equipment, venting or exhaust systems, shall be permitted to encroach into the required setbacks and daylight plane, with the exception of a roof eave up to two feet. E. If covered parking is provided for an accessory dwelling unit in the RE District, the maximum size of covered parking area for the detached accessory dwelling unit is 200 square feet. (910) Additional Requirements for All Accessory Dwelling Units A. Sale of Units: The Aaccessory dwelling unit shall not be sold separately from the primary residence. B. Short term rentals. The accessory dwelling unit shall not be rented for periods of less than 30 days. C. Number of Units Allowed: Only one accessory dwelling unit or junior accessory dwelling unit may be located on any residentially zoned lot. NOT YET APPROVED 6 ORD 2018-08-27 ADU Amendment Minor Revisions D. Existing Development: A single-family dwelling shall exist on the lot or shall be constructed on the lot in conjunction with the construction of the accessory dwelling unit. E. Occupancy: The owner of a parcel proposed for accessory dwelling use shall occupy as a principal primary residence either the primary dwelling or the accessory dwelling, unless both the primary dwelling and the accessory dwelling are rented to the same tenant and such tenant is prohibited from sub- leasing the primary dwelling or the accessory dwelling. F. Prior to issuance of a building permit for the accessory dwelling unit, the owner shall record a deed restriction in a form approved by the city that: includes a prohibition on the sale of the accessory dwelling unit separate from the sale of the single-family residence; requires owner-occupancy consistent with subsection (a)(910)(vE) above; does not permit short-term rentals; and restricts the size and attributes of the accessory dwelling unit to those that conform with this Ssection 18.42.040. G. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. H. Street Address Required: Street addresses shall be assigned to all accessory dwellings to assist in emergency response. I. Street Access: When parking is provided, the accessory dwelling unit shall have street access from a driveway in common with the main residence in order to prevent new curb cuts, excessive paving, and elimination of street trees, unless separate driveway access is permitted by the director upon a determination that separate access will result in fewer environmental impacts such as excessive paving, unnecessary grading or unnecessary tree removal, and that such separate access will not create the appearance, from the street, of a lot division or two-family use. J. For properties listed in the Palo Alto Historic Inventory, the California Register of Historical Resources, the National Register of Historic Places, or considered a historic resource after completion of a historic resource evaluation, compliance with the appropriate Secretary of Interior’s Standards for the Treatment of Historic Properties shall be required, as determined by the Planning Director. K. No protected tree shall be removed for the purpose of establishing an accessory dwelling unit unless the tree is dead, dangerous or constitutes a nuisance under Section 8.04.050. Any protected tree removed pursuant to this subsection shall be replaced in accordance with the standards it in the Tree Technical Manual. L. Except as modified by this Section 18.42.040, the accessory dwelling unit shall conform to all requirements of the underlying zoning district, any applicable combining district, and all other applicable provisions of this Title 18. NOT YET APPROVED 7 ORD 2018-08-27 ADU Amendment Minor Revisions (1011) Parking A. No additional parking shall be required for accessory dwelling units. B. If an accessory dwelling unit replaces existing required covered parking, replacement spaces shall be provided. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, any required replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit. To comply with this requirement, uncovered or tandem spaces may be provided on existing driveways within the required front and street side yards; and covered parking and mechanical automobile parking lifts may be located in required side and rear yard setbacks in compliance with Section 18.40.050. , including, but not limited to, within the front setback if on an existing driveway, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts. All new parking spaces and structures shall comply with development standards of the underlying zoning and the applicable parking design standards in Chapter 18.54, except as provided below:. i. The Director shall have the authority to modify required replacement parking spaces by up to one foot in width and length upon finding that the reduction is necessary to accommodate parking in a location otherwise allowed under this code and is not detrimental to public health, safety or the general welfare. ii Existing front and street side yard driveways may be enlarged to the minimum extent necessary to comply with the replacement parking requirement above. Existing curb cuts shall not be altered except when necessary to promote public health, safety or the general welfare. (b) Junior Accessory Dwelling Units (1) Purposes: This Section provides standards for the establishment of junior accessory dwelling units, an alternative to the standard accessory dwelling unit. Junior accessory dwelling units will typically be smaller than an accessory dwelling unit, will be constructed within the walls of an existing single family structure and requires owner occupancy in the single family residence where the unit is located. (2) Development Standards. Junior accessory dwelling units shall comply with the following standards: A. Number of Units Allowed: Either one accessory dwelling unit or one junior accessory dwelling unit, may be located on any residentially zoned lot that permits a single-family dwelling except as otherwise regulated or restricted by NOT YET APPROVED 8 ORD 2018-08-27 ADU Amendment Minor Revisions an adopted Coordinated Area Plan or Specific Plan. A junior accessory dwelling unit shall only be located on a lot which already contains one legal single- family dwelling. B. Size: A junior accessory dwelling unit shall not exceed 500 square feet in size. C. Lot Coverage/Floor Area Ratio: i. A junior accessory dwelling unit shall be included in the calculation of lot coverage and FAR floor area ratio applicable to the property. ii. A primary residence lot with a junior accessory dwelling unit shall be permitted to develop an additional 50 square feet of floor area above the maximum amount of floor area otherwise permitted by the underlying zoning district. This additional area shall be permitted to accommodate the junior accessory dwelling unit. D. Owner Occupancy: The owner of a parcel proposed for a junior accessory dwelling unit shall occupy as a principal primary residence either the primary dwelling or the junior accessory dwelling. Owner-occupancy is not required if the owner is a governmental agency, land trust, or housing organization. E. Sale Prohibited: A junior accessory dwelling unit shall not be sold independently of the primary dwelling on the parcel. F. Short term rentals: The junior accessory dwelling unit shall not be rented for periods of less than 30 days. G. Location of Junior Accessory Dwelling Unit: A junior accessory dwelling unit shall be created within the existing walls of an existing primary dwelling, and shall include, at a minimum, the conversion of an existing bedroom. H. Separate Entry Required: A separate exterior entry shall be provided to serve a junior accessory dwelling unit, with an interior entry to the main living area. A junior accessory dwelling may include a second interior doorway for sound attenuation. I. Kitchen Requirements: The junior accessory dwelling unit shall include an efficiency kitchen, requiring and limited to the following components: i. A sink with a maximum waste line diameter of one-and-a-half (1.5) inches, ii. A cooking facility or appliance which does not require electrical service greater than one hundred and twenty (120) volts, or natural or propane gas, and iii. A food preparation counter and storage cabinets that are of reasonable NOT YET APPROVED 9 ORD 2018-08-27 ADU Amendment Minor Revisions size in relation to the size of the junior accessory dwelling unit. J. Parking. No additional parking is required beyond that required at the time the existing primary dwelling was constructed. Any required parking displaced with the establishment of a junior accessory dwelling unit shall be restored in compliance with Section 18.42.040(a)(11)(B). K. Fire Protection; Utility Service. For the purposes of any fire or life protection ordinance or regulation or for the purposes of providing service for water, sewer, or power, a junior accessory dwelling unit shall not be considered a separate or new unit. L. Deed Restriction. Prior to the issuance of a building permit for a junior accessory dwelling unit, the owner shall record a deed restriction in a form approved by the city that includes a prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-family residence, requires owner-occupancy consistent with subsection (b)(2)(ivD) above, does not permit short-term rentals, and restricts the size and attributes of the junior dwelling unit to those that conform with this section. SECTION 2. Any provision of the Palo Alto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. 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 adoption of this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305 because constitute minor adjustments to the City’s zoning ordinance to implement State law requirements related to accessory dwelling units as established in Government Code Section 65852.2, and these changes are also likely to result in few additional dwelling units dispersed throughout the City. As such, it can be seen with certainty that the proposed action will not have the potential for causing a significant effect on the environment. / / / / / / / / / / NOT YET APPROVED 10 ORD 2018-08-27 ADU Amendment Minor Revisions SECTION 5. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: NOT PARTICIPATING: ATTEST: __________________________________ __________________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________________ __________________________________ Assistant City Attorney City Manager __________________________________ Director of Planning & Community Environment