HomeMy WebLinkAbout2021-12-06 City Council Agenda Packet
1
City Council
Special Meeting
Monday, December 6, 2021
5:00 PM
Council Chambers
AMENDED AGENDA
Agenda changes will appear in red below
Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the
option to attend by teleconference/video conference or in person. To maximize public safety
while still maintaining transparency and public access, members of the public can choose to
participate from home or attend in person. Information on how the public may observe and
participate in the meeting is located at the end of the agenda.
HOW TO PARTICIPATE
VIRTUAL PARTICIPATION
CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238)
Meeting ID: 362 027 238 Phone:1(669)900-6833
The meeting will be broadcast on Cable TV Channel 26, live on YouTube at
https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media
Center at https://midpenmedia.org.
IN PERSON PARTICIPATION REQUIREMENT:
• Provide Proof of Vaccination or negative COVID-19 test (taken within 48
hours) and a photo ID
• Wear a mask at all times
• Maintain social distancing
• If you cannot or do not wish to comply, you can still participate virtually
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.
PUBLIC COMMENTS
Public Comments will be accepted both in person and via Zoom meeting. All
requests to speak will be taken until 5 minutes after the staff’s presentation. Written
public comments can be submitted i n advance to city.council@cityofpaloalto.org
and will be provided to the Council and available for inspection on the City’s
web site. Please clearly indicate which agenda item you are referencing in you r
email subject line.
HEARINGS REQUIRED BY LAW
2 Special Meeting December 6, 2021
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
Applicants and/or appellants may have up to ten minutes at the outset of the public
discussion to make their remarks and up to three minutes for concluding remarks
after other members of the public have spoken.
CALL TO ORDER
CLOSED SESSION (5:00 - 6:00 PM)
Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker.
1.CONFERENCE WITH CITY ATTORNEY-EXISTING LITIGATION Subject:
Joel Alejo v. City of Palo Alto, et al. Santa Clara County Superior Court
Case No. 21CV378968 Authority: Government Code Section
54956.9(d)(1)
2.CONFERENCE WITH LABOR NEGOTIATORS City Designated
Representatives: City Manager and his Designees Pursuant to Merit
System Rules and Regulations (Ed Shikada, Kiely Nose, Rumi Portillo,
Sandra Blanch, Nicholas Raisch, Molly Stump, and Terence Howzell)
Employee Organization: Service Employees International Union,
(SEIU) Local 521, Utilities Management and Professional Association of
Palo Alto (UMPAPA)Palo Alto Peace Officer’s Association (PAPOA), Palo
Alto Police Management Association (PMA), International Association of
Fire Fighters (IAFF) local 1319, Palo Alto Fire Chiefs Association (FCA),
; Authority: Government Code Section 54957.6 (a)
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:10 - 6:30 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.
CONSENT CALENDAR (6:30 - 6:35 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.
3.Approval of Minutes November 16, 2021 and November 22, 2021 City
Council Meeting
4.Approval of contract with Life Insurance Company of North America
(CIGNA) for Underwriting of the City of Palo Alto’s Group Life,
Accidental Death and Dismemberment (AD&D), and Long Term
Disability Insurance (LTD) Plans for Up to Three Years for a total not to
exceed $1,920,000.
5.Adoption of a Resolution for the Santa Clara County Historical Heritage
Grant Program Authorizing the Application and Receipt of Grant Funds
QA
QA
Public
Comments
3 Special Meeting December 6, 2021
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
by the City of Palo Alto for the Roth Building (300 Homer Ave) Elevator
Restoration
6.Amendment No. One with Ten Geographic Information Systems (GIS)
On-Call Professional Service Contracts with: 1) Critigen LLC; 2) GIS
Solutions, Inc.; 3) Utility DataContracts, Inc.; 4) Turf Image, Inc.; 5)
Vestra Resources, Inc.; 6) Michael Baker International, Inc.; 7)
iSpatial Techno Solutions, Inc.; 8) Geographic Information Services,
Inc.; 9) Seven Tablets, Inc.; and, 10) Timmons Group, Inc.,
C20174611(A-F), Increasing the Not-To-Exceed Amount from
$700,000 Annually for Contract Year 1, to $1,500,000 Annually for
Contract Years 2 through 5, for a Total Not-to-Exceed Amount
$6,700,000 over the Five-Year Term Across All Ten On-Call GIS
Contracts
7.Amendment Number 1 to Contract Number C19173686 with
OpenCities, Inc. to Add to Increase the Scope of Services to Add
Additional Website Functionalities such as a Junior Museum Sub-
Website, and Increase the Compensation Amount Accordingly, by
$167,317 for a New Not-to-Exceed Contract Amount of $434,517
through FY25
8.Approval of a Purchase Order with Interstate Truck Center d/b/a Valley
Peterbilt in an Amount Not-to-Exceed $391,002 for the Purchase of a
2023 Peterbilt 537 with an American Truck and Trailer Body Service
Body, Utilizing a Sourcewell Cooperative Purchase Agreement; and
Approval of a Fiscal Year 2022 Budget Amendments in the Vehicle
Replacement and Maintenance Fund Scheduled Vehicle and Equipment
Replacement Capital Project (VR-22000) and the Gas Fund
CITY MANAGER COMMENTS (6:35 - 6:50 PM)
ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials,
Unfinished Business and Council Matters.
9.Adoption of Interim Urgency Ordinance Amending Titles 18 and 21 in
Response to Senate Bill 9; Adoption of an Interim Ordinance Amending
Titles 18 and 21 in Response to Senate Bills 9 and 478; Adoption of
Objective Design Standards for SB 9 Projects; and Referral of Work on
a Permanent Ordinance to the Planning and Transportation
Commission and the Architectural Review Board. (6:50 - 8:30 PM)
10.Discuss and Provide Direction to Staff on Development of New Parking
Facilities in the University Avenue Downtown Including Consideration
of: (a) Resuming Work on the Garage Project at 375 Hamilton Avenue;
QA
Public
Comments
At-Places
Memo
Presentation
Presentation
At-Places
Memo
4 Special Meeting December 6, 2021
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
or (b) Issuing a Request for Information (RFI) from Private Partners
Regarding Development of Parking Using Parking In-Lieu Fees,
Potentially in Conjunction with Housing or Other Uses, on Private or
City-Owned Properties (Late Packet Report) (8:30 - 10:30 PM)
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
Members of the public may not speak to the item(s)
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for
action during this meeting’s agenda.
11.Informational Report on the Annual Review of the City’s Renewable
Procurement Plan, Renewable Portfolio Standard Compliance, and
Carbon Neutral Electric Supplies for 2020
AMENDED AGENDA ITEMS
Items that have been added/modified from the original publication of the ag enda are listed below. Any
corresponding materials are appended to the end of the initial packet. If full items have been added to the Agenda,
they will be denoted with a number staring with AA, meaning Amended Agenda item.
10.Discuss and Provide Direction to Staff on Development of New Parking
Facilities in the University Avenue Downtown Including Consideration
of: (a) Resuming Work on the Garage Project at 375 Hamilton Avenue;
or (b) Issuing a Request for Information (RFI) from Private Partners
Regarding Development of Parking Using Parking In-Lieu Fees,
Potentially in Conjunction with Housing or Other Uses, on Private or
City-Owned Properties (Late Packet Report)
OTHER INFORMATION
Standing Committee Meetings
Finance Committee Meeting December 7, 2021
Schedule of Meetings
5 Special Meeting December 6, 2021
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via
email, teleconference, or by phone.
1. Written public comments may be submitted by email to
city.council@cityofpaloalto.org.
2. Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Council, click on the link below to
access a Zoom-based meeting. Please read the following instructions
carefully.
A. You may download the Zoom client or connect to the meeting in -
browser. If using your browser, make sure you are using a current,
up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+,
Safari 7+. Certain functionality may be disabled in older browsers
including Internet Explorer.
B. You may be asked to enter an email address and name. We request
that you identify yourself by name as this will be visible online and will
be used to notify you that it is your turn to speak.
C. When you wish to speak on an Agenda Item, click on “raise hand.” The
Clerk will activate and unmute speakers in turn. Speakers will be
notified shortly before they are called to speak.
D. When called, please limit your remarks to the time limit allotted.
E. A timer will be shown on the computer to help keep track of your
comments.
3. Spoken public comments using a smart phone will be accepted through
the teleconference meeting. To address the Council, download the Zoom
application onto your phone from the Apple App Store or Google Play Store
and enter the Meeting ID below. Please follow the instructions B-E above.
4. Spoken public comments using a phone use the telephone number listed
below. When you wish to speak on an agenda item hit *9 on your phone so
we know that you wish to speak. You will be asked to provide your first and
last name before addressing the Council. You will be advised how long you
have to speak. When called please limit your remarks to the agenda item and
time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone:1(669)900-6833
City of Palo Alto (ID # 13666)
Office of the City Attorney
City Council CAO Report
Meeting Date: 12/6/2021
Title: CONFERENCE WITH CITY ATTORNEY-EXISTING LITIGATION Subject:
Joel Alejo v. City of Palo Alto, et al. Santa Clara County Superior Court Case No.
21CV378968 Authority: Government Code Section 54956.9(d)(1)
From: Molly Stump, City Attorney
1
Packet Pg. 6
City of Palo Alto (ID # 13815)
Office of the City Clerk
City Council CAO Report
Meeting Date: 12/6/2021
Title: Approval of Minutes November 16, 2021 and November 22, 2021
City Council Meeting
From: Lesley Milton, City Clerk
Recommended Motion
To approve the minutes for November 22, 2021 as presented.
ATTACHMENTS:
• Attachment3.a: 20211122amCCs (DOCX)
• Attachment3.b: 20211116amCCsm (PDF)
3
Packet Pg. 7
CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 2
Special Meeting
November 22, 2021
The City Council of the City of Palo Alto met on this date in virtual
teleconference at 5:01 P.M.
Participating Remotely: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka.
Absent: None.
Action Items
1. Board and Commission Interviews for the Parks and Recreation
Commission and Planning & Transportation Commission.
The City Council interviewed the following applicants for the Parks and
Recreation Commission:
A. Claire Elliott
B. Annie Carl
C. Nellis L. Freeman, Jr
D. Eve Klein
E. Shani Kleinhaus
F. Anne Warner Cribbs
G. Rich Pearson
H. Thomas Rota
I. Andie Reed
J. Mark Weiss
K. Jeff Greenfield
L. Joy Oche
3.a
Packet Pg. 8
DRAFT ACTION MINUTES
Page 2 of 2
(Sp.) City Council Meeting
Draft Action Minutes: 11/22/2021
The City Council interviewed the following applicant for the Planning &
Transportation Commission:
A. Bryna Chang
Adjournment: The meeting was adjourned at 7:35 P.M.
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal
Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared in
accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in
accordance with Ordinance No. 5423, the City Council found action minutes
and the video/audio recordings of Council proceedings to be the official records
of both Council and committee proceedings. These recordings are available on
the City’s website.
3.a
Packet Pg. 9
CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 2
City Council
Special Meeting
November 16, 2021
The City Council of the City of Palo Alto met on this date in virtual
teleconference at 5:03 P.M.
Participating Remotely: Burt, Cormack, DuBois, Filseth, Kou, Tanaka
Absent: Stone
Action Items
1. Board and Commission Interviews for the Planning & Transportation
Commission, Architectural Review Board and Historic Resources Board
The City Council interviewed the following applicants for the Planning and
Transportation Commission:
A. Leonard Ely
B. Kathryn Jordan (combined interview for the Architectural Review
Board)
C. Arthur Keller
D. Nisar Shaikh
E. Chunming Niu
F. Brigham Wilson (combined interview for the Architectural Review
Board)
G. Keith Reckdahl
The Council took a break at 6:50 P.M. and returned at 7:00 P.M.
The City Council interviewed the following applicant for the Historic
Resources Board:
A. Alisa Eagleston-Cieslewicz
3.b
Packet Pg. 10
DRAFT ACTION MINUTES
Page 2 of 2
Sp. City Council Meeting
Draft Action Minutes: 11/16/2021
The City Council interviewed the following applicants for the Architectural
Review Board:
A. Peter Baltay
B. Manix Patel
C. Bin Zhou
D. Jim Xiao
E. Valerie Driscoll (also interview for the Historic Resources Board)
F. Yujin Jeon
G. David Hirsch
Adjournment: The meeting was adjourned at 8:32 P.M.
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal
Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared
in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in
accordance with Ordinance No. 5423, the City Council found action minutes
and the video/audio recordings of Council proceedings to be the official
records of both Council and committee proceedings. These recordings are
available on the City’s website.
3.b
Packet Pg. 11
City of Palo Alto (ID # 13724)
City Council Staff Report
Meeting Date: 12/6/2021
City of Palo Alto Page 1
Title: Approval of contract with Life Insurance Company of North America
(CIGNA) for Underwriting of the City of Palo Alto’s Group Life, Accidental
Death and Dismemberment (AD&D), and Long Term Disability Insurance
(LTD) Plans for Up to Three Years for a t otal not to exceed $1,920,000.
From: City Manager
Lead Department: Human Resources
Recommended Motion
Staff recommends that Council approve and authorize the City Manager to execute the attached
contract with Life Insurance Company of North America (CIGNA) for an amount up to $1,920,000 for a
three-year term to provide group life, accidental death and dismemberment (AD&D) and long-term
disability (LTD) insurance benefits for eligible City of Palo Alto employees.
OBJECTIVE
The purpose of this staff report is to provide Council a review of the recent Request for Proposal (RFP)
results for Group Life Insurance, Long-term Disability (LTD) Insurance and Accidental Death and
Dismemberment (AD&D) insurance.
BACKGROUND
As part of the employee benefits package the City of Palo Alto contracts with a third-party vendor to
provide Basic Life Insurance, Long-Term Disability (LTD) and Accidental Death and Dismemberment
(AD&D) insurance. Existing agreements with City employee bargaining units provide for maintaining
these standard benefit policies. A summary of the plans is shown in Attachment A.
The work to be performed under this contract is for underwriting the City’s group Life Insurance, AD&D,
and LTD benefits. While the City pays for basic life insurance coverage for its employees, employees can
choose to purchase an additional supplemental life insurance plan. For LTD, employees contribute to
participate in the LTD plan. The prior Request for Proposal (RFP) for underwriting the Life, AD&D, and
LTD insurance policies was conducted in 2015. That process resulted in staff selecting CIGNA due to cost
savings.
SOLICITATION PROCESS
A request for proposals (RFP) was issued by the City’s benefit broker on behalf of the City. Seven
insurance companies were notified of the formal solicitation, which posted for 14 days and closed on
March 5, 2021. The RFP process was managed by the City’s benefit broker in partnership with Human
Resources and Procurement team. Staff reviewed and approved the solicitation documents and
4
Packet Pg. 12
City of Palo Alto Page 2
processes, prior to posting the solicitation, to ensure City procurement criteria were met. The
solicitation was also reviewed at key milestones during the process. As a result of the solicitation, six
proposals were received from The Hartford, Unum, Prudential, The Standard, Voya and CIGNA.
Human Resources staff reviewed the proposals with the assistance of the City’s benefit broker relative
to the following criteria: plan administration, cost, claims paying administration, knowledge of and
experience working with public agencies, customer service capabilities, statistical reports, ease of
implementation, ability to provide desired program design and competitive pricing.
CIGNA was chosen due to its ability to provide the City with a 14.5% cost reduction equivalent to a
savings of approximately $108,000 annually, continuation of benefits, track record of accuracy,
knowledge working with public sectors clients, administrative ease and continued satisfactory customer
service.
RESOURCE IMPACT
Funds for group life, AD&D, and LTD insurance are included in the FY 2022 Adopted Budget in the
General Benefits Fund operating budget. Funds for future years will be factored into the development of
the FY 2023 and FY 2024 operating budgets.
The rates for group life, AD&D, and LTD insurance policies are based on the number of City employees,
and on the current salary of employees. With a three-year rate guarantee, the annual rate would not
increase in years two (2) and three (3), however, the total annual premium for group life and AD&D will
vary based on changes to employee salaries. With employees contributing to participate in the
Supplement Life Insurance plan and LTD plan, approximately 50% of the cost of this contract amount will
come from payroll deductions.
Attachments:
• Attachment4.a: Attachment A - Plan Summary
• Attachment4.b: Attachment B_ Contract No. C22183900_Cigna
Proposal Description/Number RFP (via Broker) for provisions of LIFE, AD&D,
and LTD Services
Proposed Length of Project 3 years
Number of RFP Notifications 7 vendors
Total Days to Respond to RFP 14 days
Pre-Proposal Meeting None
Number of Proposals Received 6 proposals
Range of cost proposals submitted $543,537 - $708,392 annually
4
Packet Pg. 13
Attachment A
Plan Description
Basic Term Life Insurance & Accidental Death and
Dismemberment (AD&D) insurance
Basic Term Life 1x Annual Compensation to a
maximum of $325,000. Basic AD&D Benefit 1x
Annual Compensation to a maximum of
$325,000.
Long-term Disability (LTD) Insurance Option 1 - Replaces 66.67% of the annual
earnings to a maximum of $4,000 per month
after 60 day waiting period.
Option 2 - Replaces 60% of the annual earnings
to a maximum of $1,800 per month after 60 day
waiting period.
Option 3 - Replaces 66.67% of the annual
earnings to a maximum of $10,000 per month
after 60 day waiting period.
4.a
Packet Pg. 14
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
CITY OF PALO ALTO CONTRACT NO. C22183900
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND LIFE INSURANCE COMPANY OF
NORTH AMERICA, A WHOLLY OWNED SUBSIDIARY OF THE CIGNA
CORPORATION
This Agreement for Professional Services (this “Agreement”) is entered into as of the 6th day of
December, 2021 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and LIFE INSURANCE COMPANY OF NORTH
AMERICA, A WHOLLY OWNED SUBSIDIARY OF THE CIGNA CORPORATION located at
located at 1601 Chestnut Street, Philadelphia, PA 19192 (“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein
by this reference:
RECITALS
A. CITY intends to provide for its employees Group Life, Accidental Death and
Dismemberment (AD&D), and Long Term Disability Insurance (LTD) (the “Project”) and desires
to engage a consultant to underwrite these insurance benefits in connection with the Project (the
“Services”, as detailed more fully in Exhibit A).
B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the
necessary professional expertise, qualifications, and capability, and all required licenses and/or
certifications to provide the Services.
C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide
the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this
Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described
in Exhibit A in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through December 31, 2024
unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance
of Services under this Agreement. CONSULTANT shall complete the Services within the term of
this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE
OF PERFORMANCE”. Any Services for which times for performance are not specified in this
Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and
timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 15
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
of damages for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services shall be based on the compensation structure
detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses
specified therein, and the maximum total compensation shall not exceed One Million Nine
Hundred Twenty Thousand Dollars ($1,920,000.00). The hourly schedule of rates, if
applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or
expenses incurred for which payment would result in a total exceeding the maximum
compensation set forth in this Section 4 shall be at no cost to the CITY.
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, if
applicable, an identification of personnel who performed the Services, hours worked, hourly rates,
and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule
of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of
completion of each task. The information in CONSULTANT’s invoices shall be subject to
verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the
address specified in Section 13 (Project Management) below. CITY will generally process and
pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed
by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it,
its employees and subcontractors, if any, possess the professional and technical personnel
necessary to perform the Services required by this Agreement and that the personnel have
sufficient skill and experience to perform the Services assigned to them. CONSULTANT
represents that it, its employees and subcontractors, if any, have and shall maintain during the term
of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature
that are legally required to perform the Services. All Services to be furnished by CONSULTANT
under this 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, as amended from time to time. CONSULTANT shall
procure all permits and licenses, pay all charges and fees, and give all notices required by law in
the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs,
including, but not limited to, increases in the cost of Services, arising from or caused by
CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such
errors and omissions, any 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. If this Agreement pertains to the design of a public works
project, CONSULTANT shall submit estimates of probable construction costs at each phase of
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 16
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s
stated construction budget by ten percent (10%) or more, CONSULTANT shall make
recommendations to CITY for aligning the Project design with the budget, incorporate CITY
approved recommendations, and revise the design to meet the Project budget, at no additional cost
to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees
that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be
deemed at all times to be an independent contractor and shall be wholly responsible for the manner
in which CONSULTANT performs the Services requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status
with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY
pertaining to or in connection with any retirement, health or other benefits that CITY may offer its
employees. CONSULTANT will be responsible for all obligations and payments, whether
imposed by federal, state or local law, including, but not limited to, FICA, income tax
withholdings, workers’ compensation, unemployment compensation, insurance, and other similar
responsibilities related to CONSULTANT’s performance of the Services, or any agent or
employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as
creating an employment or agency relationship between CITY and CONSULTANT or any agent
or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY
shall be construed as providing for direction as to policy and the result of CONSULTANT’s
provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign
or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s
obligations hereunder without the prior written approval of the City Manager. Any purported
assignment made without the prior written approval of the City Manager will be void and without
effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement
will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the
parties.
SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the
Services to be performed under this Agreement without the prior written authorization of the City
Manager or designee. In the event CONSULTANT does subcontract any portion of the work to
be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and
omissions of subcontractors.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Terri Prince as the
CONSULTANT’s Project Manager to have supervisory responsibility for the performance,
progress, and execution of the Services and represent CONSULTANT during the day-to-day
performance of the Services. If circumstances cause the substitution of the CONSULTANT’s
Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment
of a substitute Project Manager and the assignment of any key new or replacement personnel will
be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at
CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not
perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate
or timely completion of the Services or a threat to the safety of persons or property.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 17
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
CITY’s Project Manager is Angelica Jimenez, Human Resources Department, 250 Hamilton
Avenue, Palo Alto, CA, 94301, Telephone: (650) 329-2454. CITY’s Project Manager will be
CONSULTANT’s point of contact with respect to performance, progress and execution of the
Services. CITY may designate an alternate Project Manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without
limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications,
computations, models, recordings, data, documents, and other materials and copyright interests
developed under this Agreement, in any form or media, shall be and remain the exclusive property
of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights
which arise from creation of the work product pursuant to this Agreement are vested in CITY, and
CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual
property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall
make any of such work product available to any individual or organization without the prior written
approval of the City Manager or designee. CONSULTANT makes no representation of the
suitability of the work product for use in or application to circumstances not contemplated by the
Scope of Services.
SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized
representatives to audit, at any reasonable time during the term of this Agreement and for four (4)
years from the date of final payment, CONSULTANT’s records pertaining to matters covered by
this Agreement, including without limitation records demonstrating compliance with the
requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain
and retain accurate books and records in accordance with generally accepted accounting principles
for at least four (4) years after the expiration or earlier termination of this Agreement or the
completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and agents (each an
“Indemnified Party”) from and against any and all demands, claims, or liability of any nature,
including death or injury to any person, property damage or any other loss, including all costs and
expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements
(“Claims”) resulting from, arising out of or in any manner related to performance or
nonperformance by CONSULTANT, its officers, employees, agents or contractors under this
Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active
negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of,
or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its
officers, employees, agents or contractors under this Agreement.
16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not
operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 18
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under
this Agreement is effective unless it is in writing in accordance with Section 29.4 of this
Agreement. No delay or failure to require performance of any provision of this Agreement shall
constitute a waiver of that provision as to that or any other instance. Any waiver granted shall
apply solely to the specific instance expressly stated. No single or partial exercise of any right or
remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in
full force and effect during the term of this Agreement, the insurance coverage described in Exhibit
D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall
obtain a policy endorsement naming CITY as an additional insured under any general liability or
automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through
carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or
authorized to transact insurance business in the State of California. Any and all contractors of
CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in
full force and effect during the term of this Agreement, identical insurance coverage, naming CITY
as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY
concurrently with the execution of this Agreement. The certificates will be subject to the approval
of CITY’s Risk Manager and will contain an endorsement stating that the insurance is 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. If CONSULTANT fails to perform any of its material
obligations under this Agreement, in addition to all other remedies provided under this Agreement
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 19
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
or at law, the City Manager may terminate this Agreement sooner upon written notice of
termination. Upon receipt of any notice of suspension or termination, CONSULTANT will
discontinue its performance of the Services on the effective date in the notice of suspension or
termination.
19.2. In event of suspension or termination, CONSULTANT will deliver to the
City Manager on or before the effective date in the notice of suspension or termination, any and
all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed,
prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such
work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the
Services rendered and work products delivered to CITY in accordance with the Scope of Services
up to the effective date in the notice of suspension or termination; provided, however, if this
Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be
obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services
provided in material conformity with this Agreement as such determination is made by the City
Manager acting in the reasonable exercise of his/her discretion. The following Sections will
survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25,
27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made
in accordance with Section 17 (Waivers).
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by
certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the Project Manager at the address of
CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the Services.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 20
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this
Agreement is an officer or employee of CITY; this provision will be interpreted in accordance
with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the
State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any
conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by
the Regulations of the Fair Political Practices Commission, CONSULTANT will file the
appropriate financial disclosure documents required by the Palo Alto Municipal Code and the
Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended
from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person due to that person’s race, skin color, gender, gender
identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic
information or condition, housing status, marital status, familial status, weight or height of such
person. CONSULTANT acknowledges that it has read and understands the provisions of Section
2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the
penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining
to nondiscrimination in employment.
22.2. CONSULTANT understands and agrees that pursuant to the Americans
Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to
the public, whether directly or through a contractor or subcontractor, are required to be accessible
to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a
manner that complies with the ADA and any other applicable federal, state and local disability
rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate
against persons with disabilities in the provision of services, benefits or activities provided under
this Agreement.
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, hereby
incorporated by reference and as amended from time to time. CONSULTANT shall comply with
waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero
Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and,
third, recycling or composting waste. In particular, CONSULTANT shall comply with the
following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT 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.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 21
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
(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 Department’s office.
(c)Reusable/returnable pallets shall be taken back by CONSULTANT, at no
additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from
the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62
(Citywide Minimum Wage), as amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2) 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. This Agreement is subject to the fiscal provisions of
the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to
time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the
event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal
year in the event that funds are only appropriated for a portion of the fiscal year and funds for this
Agreement are no longer available. This 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. This Project is not subject to prevailing wages and related
requirements. CONSULTANT is not required to pay prevailing wages and meet related
requirements under the California Labor Code and California Code of Regulations in the
performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2)is for a public works construction project of $25,000 or less, per California
Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or
(3)is for a public works alteration, demolition, repair, or maintenance project of
$15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and
1773.3(j).
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For
purposes of this Section 27, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other public
improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code
Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in
Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.
This Project is not a 9204 Public Works Project.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 22
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to
CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential
Information in strict confidence, not disclose it to any third party, and will use it only for the
performance of its obligations to CITY under this Agreement and for no other purpose.
CONSULTANT will maintain reasonable and appropriate administrative, technical and physical
safeguards to ensure the security, confidentiality and integrity of the Confidential Information.
Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its
employees, agents and subcontractors, if any, to the extent they have a need to know in order to
perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose,
provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality
and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without
limitation “Personal Information” about a California resident as defined in Civil Code Section
1798 et seq., as amended from time to time) and materials, in any form or media, tangible or
intangible, provided or otherwise made available to CONSULTANT by CITY, directly or
indirectly, pursuant to this Agreement. Confidential Information excludes information that
CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it
was provided or has subsequently become publicly known other than by a breach of this
Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of
confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by
CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is
independently developed by employees of CONSULTANT without any use of or access to the
Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an
authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential
Information to the extent required by order of a court of competent jurisdiction or governmental
body, provided that CONSULTANT will notify CITY in writing of such order immediately upon
receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing
so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in
the security of its systems or unauthorized disclosure of, or access to, Confidential Information in
its possession or control, and if such Confidential Information consists of Personal Information,
CONSULTANT will provide information to CITY sufficient to meet the notice requirements of
Civil Code Section 1798 et seq., as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement,
CONSULTANT will honor any request from the CITY to return or securely destroy all copies of
Confidential Information. All Confidential Information is and will remain the property of the CITY
and nothing contained in this Agreement grants or confers any rights to such Confidential
Information on CONSULTANT.
28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the
terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 23
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
SECTION 29. MISCELLANEOUS PROVISIONS.
29.1. This Agreement will be governed by California law, without regard to its
conflict of law provisions.
29.2. In the event that an action is brought, the parties agree that trial of such
action will be vested exclusively in the state courts of California in the County of Santa Clara,
State of California.
29.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that
action. The prevailing party shall be entitled to recover an amount equal to the fair market value
of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third
parties.
29.4. This Agreement, including all exhibits, constitutes the entire and integrated
agreement between the parties with respect to the subject matter of this Agreement, and supersedes
all prior agreements, negotiations, representations, statements and undertakings, either oral or
written. This Agreement may be amended only by a written instrument, which is signed by the
authorized representatives of the parties and approved as required under Palo Alto Municipal
Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in
full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the
exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall
control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if
any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this
Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and
reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when
executed by the authorized representatives of the parties, shall together constitute a single binding
agreement.
SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is
selected below, is hereby attached and incorporated into this Agreement by reference as though
fully set forth herein:
EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1: BASIC & VOLUNTARY LIFE INSURANCE POLICY
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 24
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
EXHIBIT A-2: BASIC & VOLUNTARY AD&D LIFE INSURANCE POLICY
EXHIBIT A-3: LONG TERM DISABILITY INSURANCE POLICY
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT D: INSURANCE REQUIREMENTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS
ARE ATTACHED.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 25
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
CONTRACT No. S22183900 SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
CONSULTANT
LIFE INSURANCE COMPANY OF
NORTH AMERICA, A WHOLLY
OWNED SUBSIDIARY OF THE CIGNA
CORPORATION
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
Vice President of UW
Amy K. Guinan
Lauren Bradley
Corporate Vice President of UW
4.b
Packet Pg. 26
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”.
CONSULTANT shall provide employees of CITY: BASIC AND VOLUNTARY LIFE
INSURANCE, BASIC & VOLUNTARY ACCIDENTAL DEATH AND DISMEMBERMENT
(AD&D) and LONG TERM DISABILITY LIFE INSURANCE (LTD) plans. CONSULTANT
shall administer the above named insurance benefits in accordance of the policies provided in
this Agreement and attached as EXHIBITS “A-1”, “A-2” & “A-3”.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 27
CALIFORNIA LIFE AND HEALTH INSURANCE
GUARANTY ASSOCIATION ACT
SUMMARY DOCUMENT AND DISCLAIMER
Residents of California who purchase life and health insurance and annuities should know that the insurance
companies licensed in this state to write these types of insurance are members of the California Life and Health
Insurance Guaranty Association. The purpose of this Association is to assure that policyholders will be protected,
within limits, in the unlikely event that a member insurer becomes financially unable to meet its obligations. If
this should happen, the Association will assess its other member insurance companies for the money to pay the
claims of insured persons who live in this state and, in some cases, to keep coverage in force. The valuable extra
protection provided through the Association is not unlimited, as noted in the box below, and is not a substitute for
consumers' care in selecting well managed and financially stable insurers.
The California Life and Health Insurance Guaranty Association may not provide coverage for this
insurance. If coverage is provided, it may be subject to substantial limitations or exclusions, and require
continued residency in the state. You should not rely on coverage by the Association in selecting an
insurance company or in selecting an insurance policy.
Coverage is NOT provided for your insurance or any portion of it that is not guaranteed by the Insurer
or for which you have assumed the risk, such as a variable contract sold by prospectus.
Insurance companies or their agents are required by law to give or send you this notice. However,
insurance companies and their agents are prohibited by law from using the existence of the Association
to induce you to purchase any kind of insurance policy.
If you have additional questions, you should first contact your insurer or agent and then may contact:
California Life and Health OR Consumer Service Division
Insurance Guaranty Association California Department of Insurance
P.O. Box 16860 300 South Spring Street
Beverly Hills, CA 90209 Los Angeles, CA 90013
Below is a brief summary of this law's coverages, exclusions and limits. This summary does not cover all
provisions of the law; nor does it in any way change anyone's rights or obligations under the Act or the
rights or obligations of the Association.
EXHIBIT "A-1"
BASIC & VOLUNTARY LIFE INSURANCE POLICYDocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 28
COVERAGE
Generally, individuals will be protected by the California Life and Health Insurance Guaranty Association
if they live in this state and hold a life or health insurance contract, or an annuity, or if they are insured
under a group insurance contract, issued by a member insurer. The beneficiaries, payees or assignees of
insured persons are protected as well, even if they live in another state.
EXCLUSIONS FROM COVERAGE
However, persons holding such policies are not protected by this Association if:
their insurer was not authorized to do business in this state when it issued the policy or contract;
their policy was issued by a health care service plan (HMO), Blue Cross, Blue Shield, a charitable
organization, a fraternal benefit society, a mandatory state pooling plan, a mutual assessment
company, an insurance exchange, or a grants and annuities society;
they are eligible for protection under the laws of another state. This may occur when the insolvent
insurer was incorporated in another state whose Guaranty Association protects insureds who live
outside that state.
The Association also does not provide coverage for:
unallocated annuity contracts; that is, contracts which are not issued to and owned by an individual
and which guarantee rights to group contract holders, not individuals;
employer and association plans to the extent they are self-funded or uninsured;
synthetic guaranteed interest contracts;
any policy or portion of a policy which is not guaranteed by the insurer or for which the individual
has assumed the risk, such as a variable contract sold by prospectus;
any policy of reinsurance unless an assumption certificate was issued;
interest rate yields that exceed an average rate; and
any portion of a contract that provides dividends or experience rating credits.
LIMITS ON AMOUNT OF COVERAGE
The Act limits the Association to pay benefits as follows:
Life and Annuity Benefits
80% of what the life insurance company would owe under a life policy or annuity contract up to
$100,000 in cash surrender values;
$100,000 in present value of annuities; or
$250,000 in life insurance death benefits.
A maximum of $250,000 for any one insured life no matter how many policies and contracts there
were with the same company, even if the policies provided different types of coverages.
Health Benefits
A maximum of $200,000 of the contractual obligations that the health insurance company would owe
were it not insolvent. The maximum may increase or decrease annually based upon changes in the
health care cost component of the consumer price index.
PREMIUM SURCHARGE
Member insurers are required to recoup assessments paid to the Association by way of a surcharge on
premiums charged for health insurance policies to which the act applies.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 29
NOTICE
Benefits paid under the Accelerated Benefits provision will reduce the Death Benefit
payable for life insurance.
Benefits payable under the Accelerated Benefits provision may be taxable. If so, the
Employee or the Employee's beneficiary may incur a tax obligation. As with all tax
matters, an Employee should consult with a personal tax advisor to assess the impact of
this benefit. Accelerated Benefits are not payable if life insurance coverage under the
Policy is not in force.
TL-004788
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 30
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 31
LIFE INSURANCE COMPANY OF NORTH AMERICA
1601 CHESTNUT STREET GROUP POLICY
PHILADELPHIA, PA 19192-2235
(800) 732-1603 TDD (800) 552-5744
A STOCK INSURANCE COMPANY
POLICYHOLDER:
SUBSCRIBER:
POLICY NUMBER:
POLICY EFFECTIVE DATE:
POLICY ANNIVERSARY DATE:
TRUSTEE OF THE GROUP INSURANCE
TRUST FOR EMPLOYERS IN THE PUBLIC
ADMINISTRATION INDUSTRY
City of Palo Alto
FLX-962659
January 1
January 1
This Policy describes the terms and conditions of coverage. It is issued in Delaware and shall be
governed by its laws. The Policy goes into effect on the Policy Effective Date, 12:01 a.m. at the
Policyholder's address.
In return for the required premium, the Insurance Company and the Policyholder have agreed to all the
terms of this Policy.
Deborah Young, Corporate Secretary Karen S. Rohan, President
TL-004700
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 32
TABLE OF CONTENTS
SCHEDULE OF BENEFITS........................................................................................................................1
SCHEDULE OF BENEFITS FOR CLASS 1...............................................................................................2
SCHEDULE OF BENEFITS FOR CLASS 2...............................................................................................5
SCHEDULE OF BENEFITS FOR CLASS 3...............................................................................................2
ELIGIBILITY FOR INSURANCE ..............................................................................................................2
ENROLLING FOR INSURANCE...............................................................................................................2
EFFECTIVE DATE OF INSURANCE........................................................................................................2
TERMINATION OF INSURANCE.............................................................................................................3
CONTINUATION OF INSURANCE..........................................................................................................3
LIFE INSURANCE BENEFITS...................................................................................................................6
LIFE INSURANCE EXCLUSIONS ............................................................................................................8
CLAIM PROVISIONS.................................................................................................................................8
ADMINISTRATIVE PROVISIONS..........................................................................................................10
SCHEDULE OF RATES............................................................................................................................12
GENERAL PROVISIONS .........................................................................................................................13
DEFINITIONS............................................................................................................................................14
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 33
1
SCHEDULE OF BENEFITS
Premium Due Date: The last day of each month
Classes of Eligible Employees
On the pages following the definition of eligible employees there is a Schedule of Benefits for each Class
of Eligible Employees listed below. For an explanation of these benefits, please see the Description of
Benefits provision.
If an Employee is eligible under one Class of Eligible Employees and later becomes eligible under a
different Class of Eligible Employees, changes in his or her insurance due to the class change will be
effective on the first of the month following the change in class.
Class 1 All active Full-time Employees of the Employer, regularly working a minimum of 20
hours per week excluding Employees who are classified as Management.
Class 2 All active Full-time Employees of the Employer, regularly working a minimum of 20
hours per week who are classified as Management.
Class 3 All active employees as defined under the prior carrier policy number 643835 and on file
with the Insurance Company. (Closed Class)
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 34
2
SCHEDULE OF BENEFITS FOR CLASS 1
Eligibility Waiting Period
The Eligibility Waiting Period is the period of time the Employee must be in Active Service to be eligible
for coverage. It will be extended by the number of days the Employee is not in Active Service.
For Employees hired on or
before the Policy Effective Date: No Waiting Period.
For Employees hired after
the Policy Effective Date: No Waiting Period.
LIFE INSURANCE BENEFITS
Employee Benefits
Basic Benefit 1 times Annual Compensation
rounded to the next higher $1,000, if not already a multiple
thereof.
Guaranteed Issue Amount: the lesser of 1 times Annual Compensation or $325,000
Maximum Benefit: the lesser of 1 times Annual Compensation or $325,000
Voluntary Benefit 1 times Annual Compensation
rounded to the next higher $1,000, if not already a multiple
thereof.
Guaranteed Issue Amount: the lesser of 1 times Annual Compensation or $325,000
Maximum Benefit: the lesser of 1 times Annual Compensation or $325,000
Age Based Reductions Life Insurance Benefit for an Employee age 70 and over will
reduce to:
65% of the Life Insurance Benefit at age 70
50% of the Life Insurance Benefit at age 75
Continuation Options
For Layoff
Maximum Benefit Period: Coverage continues through the end of the month in which the
layoff begins
For Leave of Absence
Maximum Benefit Period: Coverage continues through the end of the month in which the
leave of absence begins
For Family Medical Leave
Maximum Benefit Period: 12 weeks
For Disability for Employees over Age 60
Maximum Benefit Period: 12 months
Applicable Coverages: Life Insurance Benefits for the Employee
Extended Death Benefit with Waiver of Premium
Extended Death Benefit
Applicable Coverages Life Insurance Benefits for the Employee
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 35
3
Waiver of Premium
Waiver Waiting Period 9 months from the date the Employee's Active Service ends
Maximum Benefit Period To Age 65
Applicable Coverages Life Insurance Benefits for the Employee
Portability Options
For Employees See the Former Employee sections in this Schedule of Benefits
for the amounts of insurance an Insured is eligible to continue
under this option.
Terminal Illness Benefit 75% of Life Insurance Benefits in force on the date the Insured is
determined by the Insurance Company to be Terminally Ill,
subject to a Maximum Benefit of $500,000.
Automatic Increase Feature
If an Employee’s Voluntary Life Insurance Benefit is based on Annual Compensation, it will
automatically increase. The amount of the increase may be up to 25% of the Employee’s previous salary
but not more than $25,000. It will automatically increase, subject to the conditions below.
Conditions for Automatic Increase:
1. the Employer provides the Insurance Company with the required notice of an increase in Annual
Compensation; and
2. the Employee is in Active Service on the effective date of the increase.
If an Employee is not in Active Service on that date, his or her benefit will not increase until he or she
returns to Active Service.
The Employee may stop the Automatic Increase Feature at any time. If an Employee stops the feature, it
may not be restarted at a later date.
TL-004736-1
Re-solicitation Period
During a Re-solicitation Period, an Employee currently insured under the Voluntary Life Insurance
portion of this Policy may increase his or her Voluntary Life Insurance Benefits, and an Employee who is
eligible for the Voluntary Life Insurance portion of this Policy but who has not previously enrolled may
become insured under the Policy, by satisfying the Insurability Requirement. An Employee’s insurance
will be effective on the date the Insurance Company agrees in writing to insure the Employee.
An Employee may reduce Insurance Benefits at any time. A request for a Benefit reduction received
during a Re-solicitation Period will become effective on the Policy Anniversary following the Re-
solicitation Period. Any other Benefit reduction will be effective on the date the Insurance Company
receives the completed change form.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 36
4
Former Employee Benefits
Amount of Insurance An amount elected subject to the Maximum Benefit amount for
Life Insurance Benefits allowable to an Employee, less any
amount of conversion insurance issued under the Conversion
Privilege for Life Insurance.
Any amount elected in excess of the Life Insurance Benefits in
effect on the date he or she no longer qualifies as an Employee
will be effective on the date the Insurance Company agrees in
writing to insure him or her.
The Maximum Benefit for Basic Life Insurance Benefits is
$50,000.
Maximum Benefit Period To Age 70
Terminal Illness Benefit 75% of Life Insurance Benefits in force on the date the Insured is
determined by the Insurance Company to be Terminally Ill,
subject to a Maximum Benefit of $500,000.
TL-004774
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 37
5
SCHEDULE OF BENEFITS FOR CLASS 2
Eligibility Waiting Period
The Eligibility Waiting Period is the period of time the Employee must be in Active Service to be eligible
for coverage. It will be extended by the number of days the Employee is not in Active Service.
For Employees hired on or
before the Policy Effective Date: No Waiting Period.
For Employees hired after
the Policy Effective Date: No Waiting Period.
LIFE INSURANCE BENEFITS
Employee Benefits
Basic Benefit 1 times Annual Compensation
rounded to the next higher $1,000, if not already a multiple
thereof.
Guaranteed Issue Amount: the lesser of 1 times Annual Compensation or $325,000
Maximum Benefit: the lesser of 1 times Annual Compensation or $325,000
Voluntary Benefit 1 or 2 times Annual Compensation
rounded to the next higher $1,000, if not already a multiple
thereof.
Guaranteed Issue Amount: the lesser of 2 times Annual Compensation or $325,000
Maximum Benefit: the lesser of 2 times Annual Compensation or $325,000
Age Based Reductions Life Insurance Benefit for an Employee age 70 and over will
reduce to:
65% of the Life Insurance Benefit at age 70
50% of the Life Insurance Benefit at age 75
Continuation Options
For Layoff
Maximum Benefit Period: Coverage continues through the end of the month in which the
layoff begins
For Leave of Absence
Maximum Benefit Period: Coverage continues through the end of the month in which the
leave of absence begins
For Family Medical Leave
Maximum Benefit Period: 12 weeks
For Disability for Employees over Age 60
Maximum Benefit Period: 12 months
Applicable Coverages: Life Insurance Benefits for the Employee
Extended Death Benefit with Waiver of Premium
Extended Death Benefit
Applicable Coverages Life Insurance Benefits for the Employee
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 38
6
Waiver of Premium
Waiver Waiting Period 9 months from the date the Employee's Active Service ends
Maximum Benefit Period To Age 65
Applicable Coverages Life Insurance Benefits for the Employee
Portability Options
For Employees See the Former Employee sections in this Schedule of Benefits
for the amounts of insurance an Insured is eligible to continue
under this option.
Terminal Illness Benefit 75% of Life Insurance Benefits in force on the date the Insured is
determined by the Insurance Company to be Terminally Ill,
subject to a Maximum Benefit of $500,000.
Automatic Increase Feature
If an Employee’s Voluntary Life Insurance Benefit is based on Annual Compensation, it will
automatically increase. The amount of the increase may be up to 25% of the Employee’s previous salary
but not more than $25,000. It will automatically increase, subject to the conditions below.
Conditions for Automatic Increase:
1. the Employer provides the Insurance Company with the required notice of an increase in Annual
Compensation; and
2. the Employee is in Active Service on the effective date of the increase.
If an Employee is not in Active Service on that date, his or her benefit will not increase until he or she
returns to Active Service.
The Employee may stop the Automatic Increase Feature at any time. If an Employee stops the feature, it
may not be restarted at a later date.
TL-004736-1
Re-solicitation Period
During a Re-solicitation Period, an Employee currently insured under the Voluntary Life Insurance
portion of this Policy may increase his or her Voluntary Life Insurance Benefits, and an Employee who is
eligible for the Voluntary Life Insurance portion of this Policy but who has not previously enrolled may
become insured under the Policy, by satisfying the Insurability Requirement. An Employee’s insurance
will be effective on the date the Insurance Company agrees in writing to insure the Employee.
An Employee may reduce Insurance Benefits at any time. A request for a Benefit reduction received
during a Re-solicitation Period will become effective on the Policy Anniversary following the Re-
solicitation Period. Any other Benefit reduction will be effective on the date the Insurance Company
receives the completed change form.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 39
1
Former Employee Benefits
Amount of Insurance An amount elected subject to the Maximum Benefit amount for
Life Insurance Benefits allowable to an Employee, less any
amount of conversion insurance issued under the Conversion
Privilege for Life Insurance.
Any amount elected in excess of the Life Insurance Benefits in
effect on the date he or she no longer qualifies as an Employee
will be effective on the date the Insurance Company agrees in
writing to insure him or her.
The Maximum Benefit for Basic Life Insurance Benefits is
$50,000.
Maximum Benefit Period To Age 70
Terminal Illness Benefit 75% of Life Insurance Benefits in force on the date the Insured is
determined by the Insurance Company to be Terminally Ill,
subject to a Maximum Benefit of $500,000.
TL-004774
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 40
2
SCHEDULE OF BENEFITS FOR CLASS 3
Eligibility Waiting Period
The Eligibility Waiting Period is the period of time the Employee must be in Active Service to be eligible
for coverage. It will be extended by the number of days the Employee is not in Active Service.
For Employees hired on or
before the Policy Effective Date: No Waiting Period.
For Employees hired after
the Policy Effective Date: No Waiting Period.
LIFE INSURANCE BENEFITS
Employee Benefits
Basic Benefit 1 times Annual Compensation
rounded to the next higher $1,000, if not already a multiple
thereof.
Guaranteed Issue Amount: the lesser of 1 times Annual Compensation or $325,000
Maximum Benefit: the lesser of 1 times Annual Compensation or $325,000
Voluntary Benefit 1 or 2 times Annual Compensation
rounded to the next higher $1,000, if not already a multiple
thereof.
Guaranteed Issue Amount: the greater of a) or b) below:
a)the lesser of 2 times Annual Compensation or $325,000, or
b)an amount equal to the Life Insurance Benefit in effect on
the termination date of the Prior Plan
Maximum Benefit: the lesser of 2 times Annual Compensation or $325,000
Age Based Reductions Life Insurance Benefit for an Employee age 70 and over will
reduce to:
65% of the Life Insurance Benefit at age 70
50% of the Life Insurance Benefit at age 75
Continuation Options
For Layoff
Maximum Benefit Period: Coverage continues through the end of the month in which the
layoff begins
For Leave of Absence
Maximum Benefit Period: Coverage continues through the end of the month in which the
leave of absence begins
For Family Medical Leave
Maximum Benefit Period: 12 weeks
For Disability for Employees over Age 60
Maximum Benefit Period: 12 months
Applicable Coverages: Life Insurance Benefits for the Employee
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 41
3
Extended Death Benefit with Waiver of Premium
Extended Death Benefit
Applicable Coverages Life Insurance Benefits for the Employee
Waiver of Premium
Waiver Waiting Period 9 months from the date the Employee's Active Service ends
Maximum Benefit Period To Age 65
Applicable Coverages Life Insurance Benefits for the Employee
Portability Options
For Employees See the Former Employee sections in this Schedule of Benefits
for the amounts of insurance an Insured is eligible to continue
under this option.
Terminal Illness Benefit 75% of Life Insurance Benefits in force on the date the Insured is
determined by the Insurance Company to be Terminally Ill,
subject to a Maximum Benefit of $500,000.
Automatic Increase Feature
If an Employee’s Voluntary Life Insurance Benefit is based on Annual Compensation, it will
automatically increase. The amount of the increase may be up to 25% of the Employee’s previous salary
but not more than $25,000. It will automatically increase, subject to the conditions below.
Conditions for Automatic Increase:
1. the Employer provides the Insurance Company with the required notice of an increase in Annual
Compensation; and
2.the Employee is in Active Service on the effective date of the increase.
If an Employee is not in Active Service on that date, his or her benefit will not increase until he or she
returns to Active Service.
The Employee may stop the Automatic Increase Feature at any time. If an Employee stops the feature, it
may not be restarted at a later date.
TL-004736-1
Re-solicitation Period
During a Re-solicitation Period, an Employee currently insured under the Voluntary Life Insurance
portion of this Policy may increase his or her Voluntary Life Insurance Benefits, and an Employee who is
eligible for the Voluntary Life Insurance portion of this Policy but who has not previously enrolled may
become insured under the Policy, by satisfying the Insurability Requirement. An Employee’s insurance
will be effective on the date the Insurance Company agrees in writing to insure the Employee.
An Employee may reduce Insurance Benefits at any time. A request for a Benefit reduction received
during a Re-solicitation Period will become effective on the Policy Anniversary following the Re-
solicitation Period. Any other Benefit reduction will be effective on the date the Insurance Company
receives the completed change form.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 42
1
Former Employee Benefits
Amount of Insurance An amount elected subject to the Maximum Benefit amount for
Life Insurance Benefits allowable to an Employee, less any
amount of conversion insurance issued under the Conversion
Privilege for Life Insurance.
Any amount elected in excess of the Life Insurance Benefits in
effect on the date he or she no longer qualifies as an Employee
will be effective on the date the Insurance Company agrees in
writing to insure him or her.
The Maximum Benefit for Basic Life Insurance Benefits is
$50,000.
Maximum Benefit Period To Age 70
Terminal Illness Benefit 75% of Life Insurance Benefits in force on the date the Insured is
determined by the Insurance Company to be Terminally Ill,
subject to a Maximum Benefit of $500,000.
TL-004774
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 43
2
ELIGIBILITY FOR INSURANCE
Classes of Eligible Persons
A person may be insured only once under the Basic Life portion of the Policy even though he or she may
be eligible under more than one class. A person may also be insured only once under the Voluntary Life
portion of the Policy as an Employee, even though he or she may be eligible under more than one class.
Employee
An Employee in one of the Classes of Eligible Employees shown in the Schedule of Benefits is eligible to
be insured on the Policy Effective Date or the day after he or she completes the applicable Eligibility
Waiting Period, if later.
If a person has previously converted his or her insurance under the Policy, he or she will not become
eligible until the converted policy is surrendered. This does not apply to any amount of insurance that
was previously converted under the Policy due to a reduction in the Employee's Life Insurance Benefits
based on age or a change in class unless those conditions no longer affect the amount of coverage
available to the Employee.
Except as noted in the Reinstatement Provision, if an Employee terminates coverage and later wishes to
reapply, or if a former Employee is rehired, a new Eligibility Waiting Period must be satisfied. An
Employee is not required to satisfy a new Eligibility Waiting Period if insurance ends because he or she is
no longer in a Class of Eligible Employees, but continues to be employed by the Employer, and within
one year becomes a member of an eligible class.
TL-004710
ENROLLING FOR INSURANCE
Initial Open Enrollment
During the Initial Open Enrollment Period, an Employee who was insured, or who was eligible to be
insured, under the Prior Plan may become insured under the Voluntary Life Insurance Plan provided by
this Policy for a Benefit of one times Annual Compensation up to this Policy's Guaranteed Issue Amount,
as shown in the Schedule of Benefits, without satisfying any Insurability Requirement. Any Employee
who is not actively at work, due to Injury or Sickness, on the date his or her coverage would otherwise
become effective under this Policy, may not become insured under this Policy until he or she returns to
Active Service.
An Employee may become insured for an amount in excess of the Guaranteed Issue Amount only if he or
she satisfies the Insurability Requirement. Any excess amount will be effective on the date the Insurance
Company agrees in writing to insure the Employee.
EFFECTIVE DATE OF INSURANCE
An Employee will be insured for an amount not to exceed the Guaranteed Issue Amount on the date he or
she becomes eligible, if the Employee is not required to contribute to the cost of this insurance.
An Employee who is required to contribute to the cost of this insurance may elect insurance for himself or
herself only by authorizing payroll deduction in a form approved by the Employer and the Insurance
Company. The effective date of this insurance depends on the date and amount of insurance elected.
If an individual elects coverage within 31 days after becoming eligible to enroll, or for any increases, the
Guaranteed Issue Amount will be effective on the latest of the following dates:
1. The Policy Effective Date.
2. The date payroll deduction is authorized for this insurance.
3. The date the Employer or Insurance Company receives the completed enrollment form.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 44
3
If an enrollment form for Employee coverage is received more than 31 days after becoming eligible to
elect coverage, this insurance will be effective on the date the Insurance Company agrees in writing to
insure that eligible person. The Insurance Company will require the eligible Employee to satisfy the
Insurability Requirement before it agrees to insure him or her.
If an eligible Employee is not in Active Service on the date insurance would otherwise be effective, it will
be effective on the date he or she returns to Active Service.
TL-004712
Takeover Provision
Special Terms Applicable to Previously Insured Employees Not in Active Service
Employees not in Active Service on the Policy Effective Date are not covered under the Policy.
However, the Insurance Company agrees to provide a death benefit equal to the lesser of:
1. the amount due under this Policy (without regard to the Active Service provision), or
2. the amount that would have been due under the Prior Plan had it remained in force.
The benefit amount will be reduced by any amount paid by the Prior Plan, or that would have been paid
had this Policy not been issued and had timely filing of the claim been made under the Prior Plan.
These special terms will end on the earliest of the following dates:
1. the date the Employee meets the Active Service requirements;
2. the date insurance terminates for one of the reasons stated in the Termination of Insurance
provision;
3. 12 months after the Policy Effective Date; or
4. the last day the Employee would have been covered under the Prior Plan if that plan was still in
force.
TL-009020
TERMINATION OF INSURANCE
An Insured's coverage will end on the earliest of the following dates:
1. the date the Employee is eligible for coverage under a plan intended to replace this coverage;
2. the date the Policy is terminated by the Insurance Company;
3. the date the Insured is no longer in an eligible class;
4. the date coinciding with the end of the last period for which premiums are paid;
5. the date an Employee is no longer in Active Service; and
6. for an Employee, the date the Employer cancels participation under the Policy.
TL-004714
CONTINUATION OF INSURANCE
If an Employee is no longer in Active Service, he or she may be eligible to continue insurance. The
following provisions explain the continuation options available under the Policy. Please see the Schedule
of Benefits to determine the applicability of these benefits on a class level.
Continuation for Layoff, Temporary Leave of Absence or Family Medical Leave
If an Employee's Active Service ends due to a layoff, Employer approved unpaid leave of absence, or
family medical leave of absence, insurance will continue for up to the Maximum Benefit Period shown in
the Schedule of Benefits, if the required premium is paid.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 45
4
Continuation for Disability for Employees over Age 60
If an Employee becomes Disabled and is age 60 or over, the Life Insurance Benefits shown in the
Schedule of Benefits will be continued, provided premiums are paid, until the earlier of the following
dates:
1. The date the Employee is no longer Disabled.
2. The date following the Maximum Benefit Period shown in the Schedule of Benefits.
3. The date coinciding with the end of the last period for which premiums are paid.
4. The date the Policy is terminated by the Insurance Company.
Amount of Insurance
If an Employee dies while he or she is Disabled and coverage is continued under this provision, the
Insurance Company will pay a Death Benefit equal to the amount in effect on the date the Employee
became Disabled. However, the Life Insurance Benefit will be subject to the provisions of the Policy that
reduce the coverage amount because of age, retirement, payment of an Accelerated Benefit or a change in
class. Automatic increases in Life Insurance Benefits will end while coverage is continued under this
provision. The Insurance Company will pay benefits only if due proof of the Employee’s continuous
Disability is received within one year of the date of the loss.
“Disability”/”Disabled” means because of Injury or Sickness the Employee is unable to perform all the
material duties of his or her Regular Occupation; or is receiving disability benefits under the Employer’s
plan.
“Regular Occupation” means the occupation the Employee routinely performs at the time the Disability
begins. The Insurance Company will consider the duties of the occupation as it is normally performed in
the general labor market in the national economy.
Extended Death Benefit with Waiver of Premium
Extended Death Benefit
If an Employee becomes Disabled and is less than age 60, the Life Insurance Benefits shown in the
Schedule of Benefits will be extended without premium payment until the earlier of the following dates:
1. The date the Employee is no longer Disabled.
2. The date the Employee fails to qualify for Waiver of Premium or fails to provide proof of
Disability as indicated under Waiver of Premium.
Amount of Insurance
If an Employee dies while he or she is Disabled and coverage is extended under this provision, the
Insurance Company will pay a Death Benefit equal to the amount in effect on the date the Employee
became Disabled. However, the Life Insurance Benefit will be subject to the provisions of the Policy that
reduce the coverage amount because of age, retirement, payment of an Accelerated Benefit or a change in
class. Automatic increases in Life Insurance Benefits will end while premiums are waived. The
Insurance Company will pay benefits only if due proof of the Employee’s continuous Disability is
received within one year of the date of the loss.
“Disability”/”Disabled” means because of Injury or Sickness the Employee is unable to perform all the
material duties of his or her Regular Occupation; or is receiving disability benefits under the Employer’s
plan.
“Regular Occupation” means the occupation the Employee routinely performs at the time the Disability
begins. The Insurance Company will consider the duties of the occupation as it is normally performed in
the general labor market in the national economy.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 46
5
Waiver of Premium
If the Employee submits satisfactory proof that he or she has been continuously Disabled for the Waiver
Waiting Period shown in the Schedule of Benefits, coverage will be extended up to the Maximum Benefit
Period shown in the Schedule of Benefits.
Such proof must be submitted to the Insurance Company no later than 3 months after the date the Waiver
Waiting Period ends. Premiums will be waived from the date the Insurance Company agrees in writing to
waive premiums for that Employee.
After premiums have been waived for 12 months, they will be waived for future periods of 12 months, if
the Employee remains Disabled and submits satisfactory proof that Disability continues. Satisfactory
proof must be submitted to the Insurance Company 3 months before the end of the 12-month period.
Amount of Insurance
If an Employee dies while he or she is Disabled and coverage is continued under this provision, the
Insurance Company will pay a Death Benefit equal to the amount in effect on the date the Employee
became Disabled. However, the Life Insurance Benefit will be subject to the provisions of the Policy that
reduce the coverage amount because of age, retirement, payment of an Accelerated Benefit or a change in
class. Automatic increases in Life Insurance Benefits will end while premiums are waived. The
Insurance Company will pay benefits only if due proof of the Employee’s continuous Disability is
received within one year of the date of the loss.
Termination of Waiver
Insurance will end for any Employee whose premiums are waived on the earliest of the following dates.
1. The date he or she is no longer Disabled.
2. The date he or she refuses to submit to any physical examination required by the Insurance
Company.
3. The last day of the 12-month period of Disability during which he or she fails to submit
satisfactory proof of continued Disability.
4. The date following the end of the Maximum Benefit Period shown in the Schedule of Benefits.
“Disability”/”Disabled” means because of Injury or Sickness an Employee is unable to perform all the
material duties of any occupation which he or she may reasonably become qualified based on education,
training or experience.
TL-009745
Portability Options
For Employees
If an Employee’s coverage under the Policy ends prior to age 70, for any of the following reasons:
a. termination of employment; or
b. termination of membership in an eligible class under the Policy;
Life Insurance Benefits may be continued up to the Maximum Benefit shown in the Schedule of Benefits
for this option.
The Employee must apply to the Insurance Company and pay the required premium. The application
must be submitted:
a. within 31 days of the Employee’s termination of employment or membership in an eligible class
under the Policy; or
b. during the time that the Employee has to exercise the Conversion Privilege.
Coverage under this option may not be elected at a later date.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 47
6
When applying for this option, the Employee must name a beneficiary. Any beneficiary named
previously under the Policy is no longer in effect. If there is no named or surviving beneficiary, Death
Benefits will be paid to the first surviving class of the following living relatives:
a.spouse;
b.child or children;
c.mother or father;
d.brothers or sisters; or
e.the executors or administrators of the Insured’s estate.
When coverage is continued under this option, the Employee becomes a Former Employee.
Coverage will end on the earliest of the following dates.
a.The date the Insurance Company cancels coverage for all Former Employees.
b.The end of the period for which premiums are paid.
c.The date an Insured reaches age 70.
d.The date the Maximum Benefit Period shown in the Schedule of Benefits for this option ends.
TL-004716 as modified by TL-009330
DESCRIPTION OF BENEFITS
The following provisions explain the benefits available under the Policy. Please see the Schedule of
Benefits for the applicability of these benefits on a class level.
LIFE INSURANCE BENEFITS
Death Benefit
If an Insured dies, the Insurance Company will pay the Life Insurance Benefit in force for that Insured on
the date of his or her death.
TL-004730
Accelerated Benefits
Any benefits payable under this Accelerated Benefits provision will reduce the Death Benefit payable for
Life Insurance. Any automatic increases in Life Insurance Benefits will end when benefits are payable
under this provision.
Terminal Illness Benefit
The Insurance Company will pay a Terminal Illness Benefit to an Insured who has been determined by
the Insurance Company to be Terminally Ill.
The Terminal Illness Benefit is payable only once in an Insured's lifetime.
Determination of Terminal Illness
For the purpose of determining the existence of a Terminal Illness, the Insurance Company will require
the Insured submit the following proof.
1. A written diagnosis and prognosis by two Physicians licensed to practice in the United States.
2.Supportive evidence satisfactory to the Insurance Company, including but not limited to
radiological, histological or laboratory reports documenting the Terminal Illness.
The Insurance Company may require, at its expense, an examination of the Insured and a review of the
documented evidence by a Physician of its choice.
"Terminal Illness" means a person has a prognosis of 12 months or less to live, as diagnosed by a
Physician.
TL-004748
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 48
7
Conversion Privilege for Life Insurance
Each Insured may convert all or any portion of his or her Life Insurance that would end under the Policy
due to:
1. termination of employment;
2. termination of membership in an eligible class under the Policy;
3. termination of the Policy.
The Insured may apply for any type of life insurance the Insurance Company offers to persons of the
same age in the amount applied for, except the Insured may not:
1. choose term insurance;
2. apply for an amount of insurance greater than the coverage amount terminating under the Policy
(also, the conversion policy will not provide accident, disability or other benefits); or
3. apply for more than $10,000 of insurance if the Policy is terminated or amended to terminate the
insurance for any class of Insureds, or the Employer cancels participation under the Policy.
Conversion in these cases is only permitted if the Insured has been covered by the Policy or, any
group life insurance policy issued to the Employer which the Policy replaced, for at least 3 years.
If the Insured becomes eligible for coverage under any group life policy within 31 days of termination of
coverage under this Policy, the Insured may not convert an amount of insurance greater than the amount
of coverage terminating under the Policy less the amount for which he or she may be covered under the
other policy.
To apply for conversion insurance, the Insured must, within 31 days after coverage under the Policy ends:
1. submit an application to the Insurance Company; and
2. pay the required premium.
Evidence of insurability is not required.
Premium for the conversion insurance will be based on the age and class of risk of the Insured and the
type and amount of coverage issued. If the Insured has assigned ownership of his group coverage, the
owner/assignee must apply for the individual policy. Conversion insurance will become effective on the
31st day after the date coverage under the Policy ends provided the application is received by the
Insurance Company and the required premium has been paid.
If the Insured dies during the 31-day conversion period, the Life Insurance benefits will be paid under the
Policy regardless of whether he or she applied for conversion insurance. If a conversion policy is issued,
it will be in exchange for any further benefits for that type and amount of insurance from this Policy.
Extension of Conversion Period
If an Insured is eligible for conversion insurance and is not notified of this right at least 15 days prior to
the end of the 31-day conversion period, the conversion period will be extended. The Insured will have
15 days from the date notice is given to apply for conversion insurance. In no event will the conversion
period be extended beyond 90 days. Notice, for the purpose of this section, means written notice
presented to the Insured by the Employer or mailed to the Insured's last known address as reported by the
Employer.
If the Insured dies during the extended conversion period, but more than 31 days after his or her coverage
under the Policy terminates, Life Insurance benefits:
1. will not be paid under the Policy; and
2. will be payable under the conversion insurance; provided:
a. the Insured's application for conversion insurance has been received by the Insurance
Company; and
b. the required premium has been paid.
Prior Conversion Limitation
If an Insured is covered under a life insurance conversion policy previously issued by the Insurance
Company, he or she will not be eligible for this Conversion Privilege unless the prior coverage has ended.
TL-009740
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 49
8
LIFE INSURANCE EXCLUSIONS
If an Insured commits suicide, while sane or insane, within 2 years from the date his or her insurance
under the Policy becomes effective, Voluntary Life Insurance Benefits will be limited to a refund of the
premiums paid on the Insured's behalf. The suicide exclusion applies from the effective date of any
additional benefits or increases in Life Insurance Benefits.
Except for any amount of benefits in excess of the Prior Plan's benefits, this exclusion will not apply to
any person covered under the Prior Plan for more than two years. If a person was not insured for two
years under the Prior Plan, credit will be given for the time he or she was insured.
TL-004752
CLAIM PROVISIONS
Notice of Claim
Written notice, or notice by any other electronic/telephonic means authorized by the Insurance Company,
must be given to the Insurance Company within 31 days after a covered loss occurs or begins or as soon
as reasonably possible. If written notice, or notice by any other electronic/telephonic means authorized
by the Insurance Company, is not given in that time, the claim will not be invalidated or reduced if it is
shown that notice was given as soon as was reasonably possible. Notice can be given at our home office
in Philadelphia, Pennsylvania or to our agent. Notice should include the Employer's Name, the Policy
Number and the claimant's name and address.
Written notice or any other electronic/telephonic means authorized by the Insurance Company of a
diagnosis of a Terminal Illness on which claim is based must be given to us within 60 days after the
diagnosis. If notice is not given in that time, the claim will not be invalidated or reduced if it is shown
that written notice or any other electronic/telephonic means authorized by the Insurance Company was
given as soon as reasonably possible.
Claim Forms
When the Insurance Company receives notice of claim, the Insurance Company will send claim forms for
filing proof of loss. If claim forms are not sent within 15 days after notice is received by the Insurance
Company, the proof requirements will be met by submitting, within the time required under the "Proof of
Loss" section, written proof, or proof by any other electronic/telephonic means authorized by the
Insurance Company, of the nature and extent of the loss.
Claimant Cooperation Provision
Failure of a claimant to cooperate with the Insurance Company in the administration of the claim may
result in termination of the claim. Such cooperation includes, but is not limited to, providing any
information or documents needed to determine whether benefits are payable or the actual benefit amount
due.
Insurance Data
The Employer is required to cooperate with the Insurance Company in the review of claims and
applications for coverage. Any information the Insurance Company provides in these areas is
confidential and may not be used or released by the Employer if not permitted by applicable privacy laws.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 50
9
Proof of Loss
Written proof of loss, or proof by any other electronic/telephonic means authorized by the Insurance
Company, must be given to the Insurance Company within 90 days after the date of the loss for which a
claim is made. If written proof of loss, or proof by any other electronic/telephonic means authorized by
the Insurance Company, is not given in that 90 day period, the claim will not be invalidated nor reduced if
it is shown that it was given as soon as was reasonably possible. In any case, written proof of loss, or
proof by any other electronic/telephonic means authorized by the Insurance Company, must be given not
more than one year after that 90 day period. If written proof of loss, or proof by any other
electronic/telephonic means authorized by the Insurance Company, is provided outside of these time
limits, the claim will be denied. These time limits will not apply while the person making the claim lacks
legal capacity.
Written proof, or any other electronic/telephonic means authorized by the Insurance Company, of loss for
Accelerated Benefits must be furnished 90 days after the date of diagnosis. This proof must describe the
occurrence, character and diagnosis for which claim is made.
In case of claim for any other loss, proof must be furnished within 90 days after the date of such loss.
If it is not reasonably possible to submit proof of loss within these time periods, the Insurance Company
will not deny or reduce any claim if proof is furnished as soon as reasonably possible. Proof must, in any
case, be furnished not more than a year later, except for lack of legal capacity.
Time of Payment
Benefits due under the Policy for a loss, other than a loss for which the Policy provides installment
payments, will be paid immediately upon receipt of due written proof of such loss.
Subject to the receipt of satisfactory written proof of loss, all accrued benefits for loss for which the
Policy provides installments will be paid monthly; any balance remaining unpaid upon the termination of
liability will be paid immediately upon receipt of due written proof, unless otherwise stated in the
Description of Benefits.
To Whom Payable
Death Benefits will be paid to the Insured's named beneficiary, if any, on file at the time of payment. If
there is no named beneficiary or surviving beneficiary, Death Benefits will be paid to the first surviving
class of the following living relatives: spouse; child or children; mother or father; brothers or sisters; or to
the executors or administrators of the Insured's estate. The Insurance Company may reduce the amount
payable by any indebtedness due.
All benefits payable under the Accelerated Benefits section are payable to the Insured, if living. If the
Insured dies prior to the payment of an eligible claim for an Accelerated Benefit, benefits will be paid in
accordance with the provisions applicable to the payment of Life Insurance proceeds, unless the Insured
has directed us otherwise in writing. However, any payment made by us prior to notice of the Insured's
death shall discharge us of any benefit that was paid.
All other benefits, unless otherwise stated in the Policy, will be payable to the Insured or the certificate
owner if other than the Insured.
Any other accrued benefits which are unpaid at the Insured's death may, at the Insurance Company's
option, be paid either to the Insured's beneficiary or to the executor or administrator of the Insured's
estate.
If the Insurance Company pays benefits to the executor or administrator of the Insured's estate or to a
person who is incapable of giving a valid release, the Insurance Company may pay up to $1,000 to a
relative by blood or marriage whom it believes is equitably entitled. This good faith payment satisfies the
Insurance Company's legal duty to the extent of that payment.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 51
10
Change of Beneficiary
The Insured may change the beneficiary at any time by giving written notice to the Employer or the
Insurance Company. The beneficiary's consent is not required for this or any other change which the
Insured may make unless the designation of beneficiary is irrevocable.
No change in beneficiary will take effect until the form is received by the Employer or the Insurance
Company. When this form is received, it will take effect as of the date of the form. If the Insured dies
before the form is received, the Insurance Company will not be liable for any payment that was made
before receipt of the form.
Physical Examination and Autopsy
The Insurance Company, at its expense, will have the right to examine any person for whom a claim is
pending as often as it may reasonably require. The Insurance Company may, at its expense, require an
autopsy unless prohibited by law.
Legal Actions
No action at law or in equity may be brought to recover benefits under the Policy less than 60 days after
written proof of loss, or proof by any other electronic/telephonic means authorized by the Insurance
Company, has been furnished as required by the Policy. No such action shall be brought more than 3
years after the time satisfactory proof of loss is required to be furnished.
Time Limitations
If any time limit stated in the Policy for giving notice of claim or proof of loss, or for bringing any action
at law or in equity, is less than that permitted by the law of the state in which the Employee lives when
the Policy is issued, then the time limit provided in the Policy is extended to agree with the minimum
permitted by the law of that state.
Physician/Patient Relationship
The Insured will have the right to choose any Physician who is practicing legally. The Insurance
Company will in no way disturb the Physician/patient relationship.
TL-004724
ADMINISTRATIVE PROVISIONS
Premiums
The premiums for this Policy will be based on the rates currently in force, the plan and the amount of
insurance in effect.
If the Insured's coverage amount is reduced due to acceleration of his or her Death Benefit, his or her
premium will be based on the amount of coverage he or she has in force on the day before the reduction
took place. If the Insured's coverage amount is reduced due to his or her attained age, premium will be
based on the amount of coverage in force on the day after the reduction took place.
Changes in Premium Rates
The premium rates may be changed by the Insurance Company from time to time with at least 31 days
advance written notice. No change in rates will be made until 48 months after the Policy Effective Date.
An increase in rates will not be made more often than once in a 12 month period. However, the Insurance
Company reserves the right to change the rates even during a period for which the rate is guaranteed if
any of the following events take place.
1. The terms of the Policy change.
2. A division, subsidiary, affiliated company or eligible class is added or deleted from the Policy.
3. There is a change in the factors bearing on the risk assumed.
4. Any federal or state law or regulation is amended to the extent it affects the Insurance Company's
benefit obligation.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 52
11
5. The Insurance Company determines that the Employer has failed to promptly furnish any
necessary information requested by the Insurance Company, or has failed to perform any other
obligations in relation to the Policy.
If an increase or decrease in rates takes place on a date that is not a Premium Due Date, a pro rata
adjustment will apply from the date of the change to the next Premium Due Date.
Reporting Requirements
The Employer must, upon request, give the Insurance Company any information required to determine
who is insured, the amount of insurance in force and any other information needed to administer the plan
of insurance.
Payment of Premium
The first premium is due on the Policy Effective Date. After that, premiums will be due monthly unless
the Employer and the Insurance Company agree on some other method of premium payment.
If any premium is not paid when due, the plan will be canceled as of the Premium Due Date, except as
provided in the Policy Grace Period section.
Notice of Cancellation
The Employer or the Insurance Company may cancel the Policy as of any Premium Due Date by giving
31 days advance written notice. If a premium is not paid when due, the Policy will automatically be
canceled as of the Premium Due Date, except as provided in the Policy Grace Period section.
Policy Grace Period
A Policy Grace Period of 60 days will be granted for the payment of the required premiums under this
Policy. This Policy will be in force during the Policy Grace Period. The Employer is liable to the
Insurance Company for any unpaid premium for the time this Policy was in force.
Grace Period for the Insured
If the required premium is not paid on the Premium Due Date, there is a 60 day grace period after each
premium due date after the first. If the required premium is not paid during the grace period, insurance
will end on the last day for which premium was paid.
If benefits are paid during the Grace Period for the Insured, the Insurance Company will deduct any
overdue premium from the proceeds payable under the Policy.
Reinstatement of Insurance
Coverage may be reinstated without satisfying the Insurability Requirement, if an Employee's insurance
ends because he or she is on an unpaid leave of absence and he or she applies for Reinstatement within 31
days of his return to Active Service.
After an Insured's coverage has ceased, it may be reinstated at any date prior to five years after the date of
termination if the following conditions are met:
1. The Policy is still in force.
2. The Insured is eligible under the Policy.
3. A written request for reinstatement and a new enrollment form are sent to the Insurance
Company.
4. The required premium is paid.
5. The Insurability Requirement, if any, is satisfied.
TL-004720
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 53
12
SCHEDULE OF RATES
The following monthly rates apply to all Classes of Eligible Persons unless otherwise indicated.
FOR EMPLOYEE BENEFITS
Basic Life Insurance $.13 Per $1,000
Voluntary Life Insurance $.24 Per $1,000
FOR FORMER EMPLOYEE BENEFITS
Monthly Rates are based on units of $1,000.
Under Age 20 $.153 Age 45 - 49 $.384
Age 20 - 24 $.144 Age 50 - 54 $.726
Age 25 - 29 $.153 Age 55 - 59 $1.347
Age 30 - 34 $.177 Age 60 - 64 $2.461
Age 35 - 39 $.19 Age 65 - 69 $4.065
Age 40 - 44 $.243
A change in rates due to a change in the Former Employee's age will become effective on the Policy
Anniversary Date coinciding with or following the Former Employee's birthday.
TL-004718
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 54
13
GENERAL PROVISIONS
Entire Contract
The entire contract will be made up of the Policy, the application of the Employer, a copy of which is
attached to the Policy, and the applications, if any, of the Insureds.
Incontestability
All statements made by the Employer or by an Insured are representations not warranties. No statement
will be used to deny or reduce benefits or as a defense to a claim, unless a copy of the instrument
containing the statement has been furnished to the claimant. In the event of death or legal incapacity, the
beneficiary or representative must receive the copy.
After two years from an Insured's effective date of insurance, or from the effective date of any added or
increased benefits, no such statement will cause insurance to be contested except for fraud or eligibility
for coverage.
Misstatement of Age
If an Insured's age has been misstated, the Insurance Company will adjust all benefits to the amounts that
would have been purchased for the correct age.
Policy Changes
No change in the Policy will be valid until approved by an executive officer of the Insurance Company.
This approval must be endorsed on, or attached to, the Policy. No agent may change the Policy or waive
any of its provisions.
Workers' Compensation Insurance
The Policy is not in lieu of and does not affect any requirements for insurance under any Workers'
Compensation Insurance Law.
Certificates
A certificate of insurance will be delivered to the Employer for delivery to Insureds. Each certificate will
list the benefits, conditions and limits of the Policy. It will state to whom benefits will be paid.
Assignment of Benefits
The Insurance Company will not be affected by the assignment of an Insured's certificate until the
original assignment or a certified copy of the assignment is filed with the Insurance Company. The
Insurance Company will not be responsible for the validity or sufficiency of an assignment. An
assignment of benefits will operate so long as the assignment remains in force provided insurance under
the Policy is in effect. This insurance may not be levied on, attached, garnisheed, or otherwise taken for a
person's debts. This prohibition does not apply where contrary to law.
Clerical Error
A person's insurance will not be affected by error or delay in keeping records of insurance under the
Policy. If such an error is found, the premium will be adjusted fairly.
Agency
The Employer and Plan Administrator are agents of the Employee for transactions relating to insurance
under the Policy. The Insurance Company is not liable for any of their acts or omissions.
TL-004726
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 55
14
DEFINITIONS
Please note, certain words used in this document have specific meanings. These terms will be capitalized
throughout this document. The definition of any word, if not defined in the text where it is used, may be
found either in this Definitions section or in the Schedule of Benefits.
Accident
An Accident is a sudden, unforeseeable external event that causes bodily Injury to an Insured while
coverage is in force under the Policy.
Active Service
An Employee will be considered in Active Service with the Employer on a day which is one of the
Employer's scheduled work days if either of the following conditions are met.
1.He or she is actively at work. This means the Employee is performing his or her regular
occupation for the Employer on a Full-time basis, either at one of the Employer's usual places of
business or at some location to which the Employer's business requires the Employee to travel.
2.The day is a scheduled holiday, vacation day or period of Employer approved paid leave of
absence, other than disability or sick leave after 7 days.
An Employee is considered in Active Service on a day which is not one of the Employer's scheduled
work days only if he or she was in Active Service on the preceding scheduled work day.
Annual Compensation
An Employee's annual wage or salary as reported by the Employer for work performed for the Employer
as of the date the covered loss occurs. It includes earnings received as commissions, but not bonuses,
overtime pay or other extra compensation.
Commissions will be averaged for the 12 months just prior to the date the covered loss occurs, or the
months employed, if less than 12 months.
Employee
For eligibility purposes, an Employee is an employee of the Employer in one of the "Classes of Eligible
Employees." Otherwise, Employee means an employee of the Employer who is insured under the Policy.
Employer
The Employer who has subscribed to the Policyholder and for the benefit of whose Employees this policy
has been issued. The Employer, named as the Subscriber on the front of this Policy, includes any
affiliates or subsidiaries covered under the Policy. The Employer is acting as an agent of the Insured for
transactions relating to this insurance. The actions of the Employer shall not be considered the actions of
the Insurance Company.
Full-time
Full-time means the number of hours set by the Employer as a regular work day for Employees in the
Employee's eligibility class.
Initial Open Enrollment Period
The period in the calendar year when an eligible Employee who was hired on or before the Policy
Effective Date may enroll for the first time for Insurance Benefits under this Policy. This period must be
agreed upon by the Employer and the Insurance Company. Refer to Initial Open Enrollment under the
Enrolling for Insurance section of the Policy.
Injury
Any accidental loss or bodily harm which results directly and independently of all other causes from an
Accident.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 56
15
Insurability Requirement
An eligible person will satisfy the Insurability Requirement for an amount of coverage on the day the
Insurance Company agrees in writing to accept him or her as insured for that amount. To determine a
person's acceptability for coverage, the Insurance Company will require evidence of good health and may
require it be provided at the Employee's expense.
Insurance Company
The Insurance Company underwriting the Policy is named on the Policy cover page.
Insured
A person who is eligible for insurance under the Policy, for whom insurance is elected, the required
premium is paid and coverage is in force under the Policy.
Physician
Physician means a licensed doctor practicing within the scope of his or her license and rendering care and
treatment to an Insured that is appropriate for the condition and locality. The term does not include an
Employee, an Employee's spouse, the immediate family (including parents, children, siblings or spouses
of any of the foregoing, whether the relationship derives from blood or marriage), of an Employee or
spouse, or a person living in an Employee's household.
Prior Plan
The Prior Plan refers to the plan of insurance providing similar benefits sponsored by the Employer in
effect directly prior to the Policy Effective Date.
Sickness
Any physical or mental illness.
TL-004708
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 57
16
IMPORTANT CHANGES FOR STATE REQUIREMENTS
If an Employee resides in one of the following states, the provisions of the certificate are modified for
residents of the following states. The modifications listed apply only to residents of that state.
California Residents:
Conversion Privilege for Life Insurance
Insured Employees and Insured Spouses may convert to an individual policy of life insurance for an
amount not greater than the Conversion Amount shown below when the Policy ends, without regard
to any requirement that the person be insured under the policy for a specified period of time, if all of
the following apply.
a. The Insured became Totally Disabled while covered for the Life Benefit of the Policy.
Totally Disabled means the person is unable to perform all the material duties of any
occupation for which he or she may reasonably be qualified based on training, education and
experience.
b. The Insured remained Totally Disabled until the Policy ended while covered for the Life
Benefit of this Policy.
c. The Policy does not provide a Waiver of Premium, Extended Death Benefit Provision or
monthly payments to Totally Disabled Insureds for the Life Benefit.
d. The person meets all other conditions for converting the insurance.
Conversion Amount - Insured’s life insurance amount under the Policy on the date the Policy ends
minus the amount for which the Insured is insured under a group policy that provides life coverage to
employees of the Insured Employee’s Employer covered under this Policy. The dollar limit that
applies to the amount for conversion at Policy termination does not apply.
The requirement that the Insured be covered under the Policy for the stated number of years in order
to convert life insurance does not apply.
Missouri residents:
Regardless of any language to the contrary in the Policy, suicide is no defense to payment of life
insurance benefits. However, if an Insured commits suicide within 2 years from the date their
insurance under the Policy becomes effective, and the Insurance Company can show that the Insured
intended suicide at the time they applied for the insurance, life insurance benefits will be limited to a
refund of premium paid on the Insured's behalf.
North Dakota residents:
The Suicide exclusion, if any, is limited to one year from the effective date of insurance. The suicide
exclusion with respect to any increase in death benefits which results from an application of the
insured subsequent to the effective date, if any, is limited to one year from the effective date of the
increase.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 58
LIFE INSURANCE COMPANY OF NORTH AMERICA
PHILADELPHIA, PA 19192-2235
We, City of Palo Alto, whose main office address is Palo Alto, CA, hereby approve and accept the terms of
Group Policy Number FLX-962659 issued by the LIFE INSURANCE COMPANY OF NORTH AMERICA
to the TRUSTEE OF THE GROUP INSURANCE TRUST FOR EMPLOYERS IN THE PUBLIC
ADMINISTRATION INDUSTRY.
This form is to be signed in duplicate. One part is to be retained by City of Palo Alto; the other part is to be
returned to the LIFE INSURANCE COMPANY OF NORTH AMERICA.
City of Palo Alto
Signature and Title: _________________________________________ Date:__________________________
(This Copy Is To Be Returned To Life Insurance Company of North America)
--------------------------------------------------------------------------------------------------------------------------------------
LIFE INSURANCE COMPANY OF NORTH AMERICA
PHILADELPHIA, PA 19192-2235
We, City of Palo Alto, whose main office address is Palo Alto, CA, hereby approve and accept the terms of
Group Policy Number FLX-962659 issued by the LIFE INSURANCE COMPANY OF NORTH AMERICA
to the TRUSTEE OF THE GROUP INSURANCE TRUST FOR EMPLOYERS IN THE PUBLIC
ADMINISTRATION INDUSTRY.
This form is to be signed in duplicate. One part is to be retained by City of Palo Alto; the other part is to be
returned to the LIFE INSURANCE COMPANY OF NORTH AMERICA.
City of Palo Alto
Signature and Title: _________________________________________ Date:__________________________
(This Copy Is To Be Retained By City of Palo Alto)
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 59
LIFE INSURANCE COMPANY OF NORTH AMERICA
(herein called the Company)
Amendment to be attached to and made a part of the Group Policy
A Contract between the Company and
Policyholder: Trustee of the Group Insurance Trust for Employers in the Public Administration Industry
Participating Subscriber: City of Palo Alto
(herein called the Subscriber)
Policy No.: FLX - 962659
The Company and the Subscriber hereby agree that the Policy is amended as follows:
Effective January 1, 2022, the rates shown on the attached Schedule of Rates will be in force for coverage under the Policy.
No change in rates will be made until 36 months after the effective date of this Amendment. However, the Company
reserves the right to change the rates at any time during a period for which the rates are guaranteed if the conditions
described in the Changes in Premium Rates provision under the Administrative Provisions section of the Policy apply.
Except for the above, this Amendment does not change the Policy in any way.
FOR THE COMPANY
William J. Smith, President
Date: November 10, 2021 (revised)
Amendment No. 03a
TL-004780
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 60
SCHEDULE OF RATES
The following monthly rates apply to all Classes of Eligible Persons unless otherwise indicated.
FOR EMPLOYEE BENEFITS
Basic Life Insurance $.090 Per $1,000
Voluntary Life Insurance $.24 Per $1,000
FOR FORMER EMPLOYEE BENEFITS
Monthly Rates are based on units of $1,000.
Under Age 20 $.153 Age 45 - 49 $.384
Age 20 - 24 $.144 Age 50 - 54 $.726
Age 25 - 29 $.153 Age 55 - 59 $1.347
Age 30 - 34 $.177 Age 60 - 64 $2.461
Age 35 - 39 $.19 Age 65 - 69 $4.065
Age 40 - 44 $.243
A change in rates due to a change in the Former Employee's age will become effective on the Policy Anniversary Date
coinciding with or following the Former Employee's birthday.
TL-004718
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 61
LIFE INSURANCE COMPANY OF NORTH AMERICA
(herein called the Company)
Amendment to be attached to and made a part of the Group Policy
A Contract between the Company and
Policyholder: Trustee of the Group Insurance Trust for Employers in the Public Administration Industry
Participating Subscriber: City of Palo Alto
(herein called the Subscriber)
Policy No.: LK - 961943
The Company and the Subscriber hereby agree that the Policy is amended as follows:
1. Effective January 1, 2022, the following rates will be in force for Classes 1 for coverage under the Policy:
Option 1
$1.07 per $100 of Covered Payroll
Covered Payroll for an Employee will mean his or her Covered Earnings for the insurance month prior to the date the
determination is made. However, an Employee's Covered Payroll will not include any part of his or her monthly
Covered Earnings which exceed $6,000.
Option 2
$.51 per $100 of Covered Payroll
Covered Payroll for an Employee will mean his or her Covered Earnings for the insurance month prior to the date the
determination is made. However, an Employee's Covered Payroll will not include any part of his or her monthly
Covered Earnings which exceed $3,000.
2. Effective January 1, 2022, the following rates will be in force for Class 2 and 3 for coverage under the Policy:
$.56 per $100 of Covered Payroll
Covered Payroll for an Employee will mean his or her Covered Earnings for the insurance month prior to the date the
determination is made. However, an Employee's Covered Payroll will not include any part of his or her monthly
Covered Earnings which exceed $15,000.
No change in rates will be made until 36 months after the effective date of this Amendment. However, the Company
reserves the right to change the rates at any time during a period for which the rates are guaranteed if the conditions
described in the Changes in Premium Rates provision under the Administrative Provisions section of the Policy apply.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 62
Except for the above, this Amendment does not change the Policy in any way.
FOR THE COMPANY
William J. Smith, President
Date: August 26, 2021
Amendment No. 03a
TL-004780
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 63
Life Insurance Company of North America
1601 Chestnut Street
Philadelphia, Pennsylvania 19192-2235
AMENDMENT
Policyholder: Trustee of the Group Insurance Trust for Employers in the Public Administration Industry
Subscriber: City of Palo Alto Policy No.: OK - 964302
This Amendment is attached to and made part of the Policy specified above. It is subject to all of the policy provisions tha t
do not conflict with its provisions.
Subscriber and We hereby agree that the Policy is amended as follows:
Effective January 1, 2022, the following rates will be in force for Classes 1, 2 and 3 for coverage under the Policy:
Premium Rate: Basic Insurance
Employee Rate: $0.015 per $1,000
Voluntary Insurance
Employee Rate: $0.02 per $1,000
No change in rates will be made until 36 months after the effective date of this Amendment. However, the Company
reserves the right to change the rates at any time during a period for which the rates are guaranteed if the conditions
described in the Changes in Premium Rates provision under the Administrative Provisions section of the Policy apply.
Except for the above, this Amendment does not change the Policy in any way.
Life Insurance Company of North America
William J. Smith, President
Date: August 26, 2021
Amendment No. 04ri0215
GA -00-4000.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 64
CALIFORNIA LIFE AND HEALTH INSURANCE
GUARANTY ASSOCIATION ACT
SUMMARY DOCUMENT AND DISCLAIMER
Residents of California who purchase life and health insurance and annuities should know that the insurance
companies licensed in this state to write these types of insurance are members of the California Life and Health
Insurance Guaranty Association. The purpose of this Association is to assure that policyholders will be protected,
within limits, in the unlikely event that a member insurer becomes financially unable to meet its obligations. If
this should happen, the Association will assess its other member insurance companies for the money to pay the
claims of insured persons who live in this state and, in some cases, to keep coverage in force. The valuable extra
protection provided through the Association is not unlimited, as noted in the box below, and is not a substitute for
consumers' care in selecting well managed and financially stable insurers.
The California Life and Health Insurance Guaranty Association may not provide coverage for this
insurance. If coverage is provided, it may be subject to substantial limitations or exclusions, and
require continued residency in the state. You should not rely on coverage by the Association in
selecting an insurance company or in selecting an insurance policy.
Coverage is NOT provided for your insurance or any portion of it that is not guaranteed by the Insurer
or for which you have assumed the risk, such as a variable contract sold by prospectus.
Insurance companies or their agents are required by law to give or send you this notice. However,
insurance companies and their agents are prohibited by law from using the existence of the Association
to induce you to purchase any kind of insurance policy.
If you have additional questions, you should first contact your insurer or agent and then may contact:
California Life and Health OR Consumer Service Division
Insurance Guaranty Association California Department of Insurance
P.O. Box 16860 300 South Spring Street
Beverly Hills, CA 90209 Los Angeles, CA 90013
Below is a brief summary of this law's coverages, exclusions and limits. This summary does not cover all
provisions of the law; nor does it in any way change anyone's rights or obligations under the Act or the rights or
obligations of the Association.
EXHIBIT "A-2"
BASIC & VOLUNTARY AD&D LIFE INSURANCE POLICY
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 65
COVERAGE
Generally, individuals will be protected by the California Life and Health Insurance Guaranty Association if they
live in this state and hold a life or health insurance contract, or an annuity, or if they are insured under a group
insurance contract, issued by a member insurer. The beneficiaries, payees or assignees of insured persons are
protected as well, even if they live in another state.
EXCLUSIONS FROM COVERAGE
However, persons holding such policies are not protected by this Association if:
• their insurer was not authorized to do business in this state when it issued the policy or contract;
• their policy was issued by a health care service plan (HMO), Blue Cross, Blue Shield, a charitable
organization, a fraternal benefit society, a mandatory state pooling plan, a mutual assessment company, an
insurance exchange, or a grants and annuities society;
• they are eligible for protection under the laws of another state. This may occur when the insolvent insurer
was incorporated in another state whose Guaranty Association protects insureds who live outside that state.
The Association also does not provide coverage for:
• unallocated annuity contracts; that is, contracts which are not issued to and owned by an individual and which
guarantee rights to group contract holders, not individuals;
• employer and association plans to the extent they are self-funded or uninsured;
• synthetic guaranteed interest contracts;
• any policy or portion of a policy which is not guaranteed by the insurer or for which the individual has
assumed the risk, such as a variable contract sold by prospectus;
• any policy of reinsurance unless an assumption certificate was issued;
• interest rate yields that exceed an average rate; and
• any portion of a contract that provides dividends or experience rating credits.
LIMITS ON AMOUNT OF COVERAGE
The Act limits the Association to pay benefits as follows:
Life and Annuity Benefits
• 80% of what the life insurance company would owe under a life policy or annuity contract up to
• $100,000 in cash surrender values;
• $100,000 in present value of annuities; or
• $250,000 in life insurance death benefits.
• A maximum of $250,000 for any one insured life no matter how many policies and contracts there were with
the same company, even if the policies provided different types of coverages.
Health Benefits
• A maximum of $200,000 of the contractual obligations that the health insurance company would owe were it
not insolvent. The maximum may increase or decrease annually based upon changes in the health care cost
component of the consumer price index.
PREMIUM SURCHARGE
Member insurers are required to recoup assessments paid to the Association by way of a surcharge on premiums
charged for health insurance policies to which the act applies.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 66
Life Insurance Company of North America
1601 Chestnut Street, Philadelphia, Pennsylvania 19192-2235
A Stock Insurance Company
GROUP ACCIDENT POLICY
POLICYHOLDER:
POLICY NUMBER:
POLICY EFFECTIVE DATE:
POLICY ANNIVERSARY DATE:
STATE OF ISSUE:
Trustee of the Group Insurance Trust for
Employers in the Public Administration
Industry
OK 964302
January 1
January 1
Delaware
This Policy describes the terms and conditions of insurance. This Policy goes into effect subject to its applicable terms and
conditions at 12:01 AM on the Policy Effective Date shown above at the Policyholder’s address. The laws of the State of
Issue shown above govern this Policy.
We and the Policyholder agree to all of the terms of this Policy.
THIS IS A GROUP ACCIDENT ONLY INSURANCE POLICY.
IT DOES NOT PAY BENEFITS FOR LOSS CAUSED BY SICKNESS.
THIS IS A LIMITED POLICY.
PLEASE READ IT CAREFULLY.
Deborah Young, Corporate Secretary Karen S. Rohan, President
Countersigned________________________________________
Where Required By Law
GA-00-1000.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 67
TABLE OF CONTENTS
SECTION PAGE NUMBER
SCHEDULE OF AFFILIATES 1
SCHEDULE OF BENEFITS 2
GENERAL DEFINITIONS 15
ELIGIBILITY AND EFFECTIVE DATE PROVISIONS 18
COMMON EXCLUSIONS 19
CONVERSION PRIVILEGE 20
CLAIM PROVISIONS 22
ADMINISTRATIVE PROVISIONS 24
GENERAL PROVISIONS 25
ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGE 27
EXPOSURE AND DISAPPEARANCE COVERAGE 28
CHILD CARE CENTER BENEFIT 28
COMMON CARRIER BENEFIT 29
FELONIOUS ASSAULT AND VIOLENT CRIME BENEFIT 29
SEATBELT AND AIRBAG BENEFIT 30
SPECIAL EDUCATION BENEFIT 30
SPOUSE RETRAINING BENEFIT 32
GA-00-1000.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 68
1
SCHEDULE OF AFFILIATES
The following affiliates are covered under this Policy on the effective dates listed below.
AFFILIATE NAME LOCATION EFFECTIVE DATE
None
GA-00-1000.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 69
2
SCHEDULE OF BENEFITS
This Policy is intended to be read in its entirety. In order to understand all the conditions, exclusions and limitations
applicable to its benefits, please read all the policy provisions carefully.
The Schedule of Benefits provides a brief outline of the coverage and benefits provided by this Policy. Please read
the Description of Coverages and Benefits Section for full details.
Subscriber: City of Palo Alto
Effective Date of Subscriber Participation: January 1, 2009
Covered Classes:
Class 1 All active, full-time Employees of the Employer, regularly working a minimum of 20 hours per week
excluding Employees who are classified as Management.
Class 2 All active, full-time Employees of the Employer, regularly working a minimum of 20 hours per week
who are classified as Management.
Class 3 All active, Full-time Employees of the Employer as defined under the prior carrier policy number
643835, and on file with the Insurance Company, and who are regularly working a minimum of 20 hours
per week. (Closed Class)
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 70
3
SCHEDULE OF BENEFITS FOR CLASS 1
This Schedule of Benefits shows maximums, benefit periods and any limitations applicable to benefits provided in
this Policy for each Covered Person unless otherwise indicated. Principal Sum, when referred to in this Schedule,
means the Employee’s Principal Sum in effect on the date of the Covered Accident causing the Covered Injury or
Covered Loss unless otherwise specified.
Eligibility Waiting Period
The Eligibility Waiting Period is the period of time the Employee must be in a Covered Class to be eligible for coverage.
For Employees hired on or before the Policy Effective Date: No Waiting Period
For Employees hired after the Policy Effective Date: No Waiting Period
Time Period for Loss:
Any Covered Loss must occur within: 365 days of the Covered Accident
Maximum Age for Insurance: None
BASIC ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS
Employee Principal Sum: 1 times Annual Compensation rouinded to the next higher $1,000
if not already a multiple thereof, subject to a maximum of
$325,000.
Changes in the Covered Person's amount of insurance resulting from a change in the Employee's amount of
Annual Compensation take effect, subject to any Active Service requirement, on the first day of the month
following the change in Annual Compensation.
SCHEDULE OF COVERED LOSSES
Covered Loss Benefit
Loss of Life 100% of the Principal Sum
Loss of Two or More Hands or Feet 100% of the Principal Sum
Loss of Sight of Both Eyes 100% of the Principal Sum
Loss of One Hand or One Foot and Sight in One Eye 100% of the Principal Sum
Loss of Speech and Hearing (in both ears) 100% of the Principal Sum
Quadriplegia 100% of the Principal Sum
Paraplegia 75% of the Principal Sum
Hemiplegia 50% of the Principal Sum
Uniplegia 25% of the Principal Sum
Coma
Monthly Benefit 1% of the Principal Sum
Number of Monthly Benefits 11
Lump Sum Benefit 100% of the Principal Sum
When Payable Beginning of the 12th month
Loss of One Hand or Foot 50% of the Principal Sum
Loss of Sight in One Eye 50% of the Principal Sum
Loss of Speech 50% of the Principal Sum
Loss of Hearing (in both ears) 50% of the Principal Sum
Loss of all Four Fingers of the Same Hand 25% of the Principal Sum
Loss of Thumb and Index Finger of the Same Hand 25% of the Principal Sum
Loss of all the Toes of the Same Foot 25% of the Principal Sum
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 71
4
Age Reductions
A Covered Person's Principal Sum will be reduced to the percentage of his Principal Sum in effect on the date
preceding the first reduction, as shown below.
Age Percentage of Benefit Amount
70 but less than 75 65%
75 and over 50%
ADDITIONAL ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGES
Accidental Death and Dismemberment benefits are provided under the following coverages. Any benefits payable under
them are as shown in the Schedule of Covered Losses and are not paid in addition to any other Accidental Death and
Dismemberment benefits.
EXPOSURE AND DISAPPEARANCE COVERAGE Principal Sum multiplied by the percentage applicable to the
Covered Loss, as shown in the Schedule of Covered Losses.
ADDITIONAL ACCIDENT BENEFITS
Any benefits payable under these Additional Accident Benefits shown below are paid in addition to any other Accidental
Death and Dismemberment benefits payable.
CHILD CARE CENTER BENEFIT
Benefit Amount $5,000
Maximum Benefit Period the earlier of 4 years or until the child turns 13 for each
surviving Dependent Child
COMMON CARRIER BENEFIT 100% multiplied by the percentage of the Principal Sum
applicable to the Covered Loss, as shown in the Schedule of
Covered Losses, subject to a maximum of $200,000
FELONIOUS ASSAULT AND VIOLENT CRIME BENEFIT
Accidental Death and Dismemberment Benefit 50% multiplied by the percentage of the Principal Sum
applicable to the Covered Loss, as shown in the Schedule of
Covered Losses, subject to a maximum of $25,000
Hospital Stay Benefit $100 per day
Maximum Benefit Period 365 days per Hospital Stay per Covered Accident
SEATBELT AND AIRBAG BENEFIT
Seatbelt Benefit $10,000
Airbag Benefit $5,000
Default Benefit $1,000
SPECIAL EDUCATION BENEFIT
Surviving Dependent Child Benefit $5,000
Maximum Number of Annual Payments
For Each Surviving Dependent Child 4
Default Benefit $1,000
SPOUSE RETRAINING BENEFIT
Benefit $5,000
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 72
5
VOLUNTARY ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS
Employee Principal Sum: Voluntary Benefits match the Voluntary Life Benefits under
policy number FLX 962659. Only Employees covered for the
Voluntary Life can elect Voluntary AD&D.
Changes in the Covered Person's amount of insurance resulting from a change in the Employee's amount of
Annual Compensation take effect, subject to any Active Service requirement, on the first day of the month
following the change in Annual Compensation.
SCHEDULE OF COVERED LOSSES
Covered Loss Benefit
Loss of Life 100% of the Principal Sum
Loss of Two or More Hands or Feet 100% of the Principal Sum
Loss of Sight of Both Eyes 100% of the Principal Sum
Loss of One Hand or One Foot and Sight in One Eye 100% of the Principal Sum
Loss of Speech and Hearing (in both ears) 100% of the Principal Sum
Quadriplegia 100% of the Principal Sum
Paraplegia 75% of the Principal Sum
Hemiplegia 50% of the Principal Sum
Uniplegia 25% of the Principal Sum
Coma
Monthly Benefit 1% of the Principal Sum
Number of Monthly Benefits 11
Lump Sum Benefit 100% of the Principal Sum
When Payable Beginning of the 12th month
Loss of One Hand or Foot 50% of the Principal Sum
Loss of Sight in One Eye 50% of the Principal Sum
Loss of Speech 50% of the Principal Sum
Loss of Hearing (in both ears) 50% of the Principal Sum
Loss of all Four Fingers of the Same Hand 25% of the Principal Sum
Loss of Thumb and Index Finger of the Same Hand 25% of the Principal Sum
Loss of all the Toes of the Same Foot 25% of the Principal Sum
Age Reductions
A Covered Person's Principal Sum will be reduced to the percentage of his Principal Sum in effect on the date
preceding the first reduction, as shown below.
Age Percentage of Benefit Amount
70 but less than 75 65%
75 and over 50%
ADDITIONAL ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGES
Accidental Death and Dismemberment benefits are provided under the following coverages. Any benefits payable under
them are as shown in the Schedule of Covered Losses and are not paid in addition to any other Accidental Death and
Dismemberment benefits.
EXPOSURE AND DISAPPEARANCE COVERAGE Principal Sum multiplied by the percentage applicable to the
Covered Loss, as shown in the Schedule of Covered Losses.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 73
6
ADDITIONAL ACCIDENT BENEFITS
Any benefits payable under these Additional Accident Benefits shown below are paid in addition to any other Accidental
Death and Dismemberment benefits payable.
CHILD CARE CENTER BENEFIT
Benefit Amount $5,000
Maximum Benefit Period the earlier of 4 years or until the child turns 13 for each
surviving Dependent Child
COMMON CARRIER BENEFIT 100% multiplied by the percentage of the Principal Sum
applicable to the Covered Loss, as shown in the Schedule of
Covered Losses, subject to a maximum of $200,000
FELONIOUS ASSAULT AND VIOLENT CRIME BENEFIT
Accidental Death and Dismemberment Benefit 50% multiplied by the percentage of the Principal Sum
applicable to the Covered Loss, as shown in the Schedule of
Covered Losses, subject to a maximum of $25,000
Hospital Stay Benefit $100 per day
Maximum Benefit Period 365 days per Hospital Stay per Covered Accident
SEATBELT AND AIRBAG BENEFIT
Seatbelt Benefit $10,000
Airbag Benefit $5,000
Default Benefit $1,000
SPECIAL EDUCATION BENEFIT
Surviving Dependent Child Benefit $5,000
Maximum Number of Annual Payments
For Each Surviving Dependent Child 4
Default Benefit $1,000
SPOUSE RETRAINING BENEFIT
Benefit $5,000
INITIAL PREMIUM RATES
Premium Rate: Basic Insurance
Employee Rate: $0.02 per $1,000
Voluntary Insurance
Employee Rate: $0.02 per $1,000
Mode of Premium Payment: Monthly
Contributions: The cost of the coverage is paid by the Subscriber and the Employee
Premium Due Dates: The Policy Effective Date and the first day of each succeeding modal
period
Premium rates are subject to change in accordance with the Changes in Premium Rates section contained in the
Administrative Provisions section of this Policy.
GA-00-1100.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 74
7
SCHEDULE OF BENEFITS FOR CLASS 2
This Schedule of Benefits shows maximums, benefit periods and any limitations applicable to benefits provided in
this Policy for each Covered Person unless otherwise indicated. Principal Sum, when referred to in this Schedule,
means the Employee’s Principal Sum in effect on the date of the Covered Accident causing the Covered Injury or
Covered Loss unless otherwise specified.
Eligibility Waiting Period
The Eligibility Waiting Period is the period of time the Employee must be in a Covered Class to be eligible for coverage.
For Employees hired on or before the Policy Effective Date: No Waiting Period
For Employees hired after the Policy Effective Date: No Waiting Period
Time Period for Loss:
Any Covered Loss must occur within: 365 days of the Covered Accident
Maximum Age for Insurance: None
BASIC ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS
Employee Principal Sum: 1 times Annual Compensation rouinded to the next higher $1,000
if not already a multiple thereof, subject to a maximum of
$325,000.
Changes in the Covered Person's amount of insurance resulting from a change in the Employee's amount of
Annual Compensation take effect, subject to any Active Service requirement, on the first day of the month
following the change in Annual Compensation.
SCHEDULE OF COVERED LOSSES
Covered Loss Benefit
Loss of Life 100% of the Principal Sum
Loss of Two or More Hands or Feet 100% of the Principal Sum
Loss of Sight of Both Eyes 100% of the Principal Sum
Loss of One Hand or One Foot and Sight in One Eye 100% of the Principal Sum
Loss of Speech and Hearing (in both ears) 100% of the Principal Sum
Quadriplegia 100% of the Principal Sum
Paraplegia 75% of the Principal Sum
Hemiplegia 50% of the Principal Sum
Uniplegia 25% of the Principal Sum
Coma
Monthly Benefit 1% of the Principal Sum
Number of Monthly Benefits 11
Lump Sum Benefit 100% of the Principal Sum
When Payable Beginning of the 12th month
Loss of One Hand or Foot 50% of the Principal Sum
Loss of Sight in One Eye 50% of the Principal Sum
Loss of Speech 50% of the Principal Sum
Loss of Hearing (in both ears) 50% of the Principal Sum
Loss of all Four Fingers of the Same Hand 25% of the Principal Sum
Loss of Thumb and Index Finger of the Same Hand 25% of the Principal Sum
Loss of all the Toes of the Same Foot 25% of the Principal Sum
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 75
8
Age Reductions
A Covered Person's Principal Sum will be reduced to the percentage of his Principal Sum in effect on the date
preceding the first reduction, as shown below.
Age Percentage of Benefit Amount
70 but less than 75 65%
75 and over 50%
ADDITIONAL ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGES
Accidental Death and Dismemberment benefits are provided under the following coverages. Any benefits payable under
them are as shown in the Schedule of Covered Losses and are not paid in addition to any other Accidental Death and
Dismemberment benefits.
EXPOSURE AND DISAPPEARANCE COVERAGE Principal Sum multiplied by the percentage applicable to the
Covered Loss, as shown in the Schedule of Covered Losses.
ADDITIONAL ACCIDENT BENEFITS
Any benefits payable under these Additional Accident Benefits shown below are paid in addition to any other Accidental
Death and Dismemberment benefits payable.
CHILD CARE CENTER BENEFIT
Benefit Amount $5,000
Maximum Benefit Period the earlier of 4 years or until the child turns 13 for each
surviving Dependent Child
COMMON CARRIER BENEFIT 100% multiplied by the percentage of the Principal Sum
applicable to the Covered Loss, as shown in the Schedule of
Covered Losses, subject to a maximum of $200,000
FELONIOUS ASSAULT AND VIOLENT CRIME BENEFIT
Accidental Death and Dismemberment Benefit 50% multiplied by the percentage of the Principal Sum
applicable to the Covered Loss, as shown in the Schedule of
Covered Losses, subject to a maximum of $25,000
Hospital Stay Benefit $100 per day
Maximum Benefit Period 365 days per Hospital Stay per Covered Accident
SEATBELT AND AIRBAG BENEFIT
Seatbelt Benefit $10,000
Airbag Benefit $5,000
Default Benefit $1,000
SPECIAL EDUCATION BENEFIT
Surviving Dependent Child Benefit $5,000
Maximum Number of Annual Payments
For Each Surviving Dependent Child 4
Default Benefit $1,000
SPOUSE RETRAINING BENEFIT
Benefit $5,000
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 76
9
VOLUNTARY ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS
Employee Principal Sum: Voluntary Benefits match the Voluntary Life Benefits under
policy number FLX 962659. Only Employees covered for the
Voluntary Life can elect Voluntary AD&D.
Changes in the Covered Person's amount of insurance resulting from a change in the Employee's amount of
Annual Compensation take effect, subject to any Active Service requirement, on the first day of the month
following the change in Annual Compensation.
SCHEDULE OF COVERED LOSSES
Covered Loss Benefit
Loss of Life 100% of the Principal Sum
Loss of Two or More Hands or Feet 100% of the Principal Sum
Loss of Sight of Both Eyes 100% of the Principal Sum
Loss of One Hand or One Foot and Sight in One Eye 100% of the Principal Sum
Loss of Speech and Hearing (in both ears) 100% of the Principal Sum
Quadriplegia 100% of the Principal Sum
Paraplegia 75% of the Principal Sum
Hemiplegia 50% of the Principal Sum
Uniplegia 25% of the Principal Sum
Coma
Monthly Benefit 1% of the Principal Sum
Number of Monthly Benefits 11
Lump Sum Benefit 100% of the Principal Sum
When Payable Beginning of the 12th month
Loss of One Hand or Foot 50% of the Principal Sum
Loss of Sight in One Eye 50% of the Principal Sum
Loss of Speech 50% of the Principal Sum
Loss of Hearing (in both ears) 50% of the Principal Sum
Loss of all Four Fingers of the Same Hand 25% of the Principal Sum
Loss of Thumb and Index Finger of the Same Hand 25% of the Principal Sum
Loss of all the Toes of the Same Foot 25% of the Principal Sum
Age Reductions
A Covered Person's Principal Sum will be reduced to the percentage of his Principal Sum in effect on the date
preceding the first reduction, as shown below.
Age Percentage of Benefit Amount
70 but less than 75 65%
75 and over 50%
ADDITIONAL ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGES
Accidental Death and Dismemberment benefits are provided under the following coverages. Any benefits payable under
them are as shown in the Schedule of Covered Losses and are not paid in addition to any other Accidental Death and
Dismemberment benefits.
EXPOSURE AND DISAPPEARANCE COVERAGE Principal Sum multiplied by the percentage applicable to the
Covered Loss, as shown in the Schedule of Covered Losses.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 77
10
ADDITIONAL ACCIDENT BENEFITS
Any benefits payable under these Additional Accident Benefits shown below are paid in addition to any other Accidental
Death and Dismemberment benefits payable.
CHILD CARE CENTER BENEFIT
Benefit Amount $5,000
Maximum Benefit Period the earlier of 4 years or until the child turns 13 for each
surviving Dependent Child
COMMON CARRIER BENEFIT 100% multiplied by the percentage of the Principal Sum
applicable to the Covered Loss, as shown in the Schedule of
Covered Losses, subject to a maximum of $200,000
FELONIOUS ASSAULT AND VIOLENT CRIME BENEFIT
Accidental Death and Dismemberment Benefit 50% multiplied by the percentage of the Principal Sum
applicable to the Covered Loss, as shown in the Schedule of
Covered Losses, subject to a maximum of $25,000
Hospital Stay Benefit $100 per day
Maximum Benefit Period 365 days per Hospital Stay per Covered Accident
SEATBELT AND AIRBAG BENEFIT
Seatbelt Benefit $10,000
Airbag Benefit $5,000
Default Benefit $1,000
SPECIAL EDUCATION BENEFIT
Surviving Dependent Child Benefit $5,000
Maximum Number of Annual Payments
For Each Surviving Dependent Child 4
Default Benefit $1,000
SPOUSE RETRAINING BENEFIT
Benefit $5,000
INITIAL PREMIUM RATES
Premium Rate: Basic Insurance
Employee Rate: $0.02 per $1,000
Voluntary Insurance
Employee Rate: $0.02 per $1,000
Mode of Premium Payment: Monthly
Contributions: The cost of the coverage is paid by the Subscriber and the Employee
Premium Due Dates: The Policy Effective Date and the first day of each succeeding modal
period
Premium rates are subject to change in accordance with the Changes in Premium Rates section contained in the
Administrative Provisions section of this Policy.
GA-00-1100.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 78
11
SCHEDULE OF BENEFITS FOR CLASS 3
This Schedule of Benefits shows maximums, benefit periods and any limitations applicable to benefits provided in
this Policy for each Covered Person unless otherwise indicated. Principal Sum, when referred to in this Schedule,
means the Employee’s Principal Sum in effect on the date of the Covered Accident causing the Covered Injury or
Covered Loss unless otherwise specified.
Eligibility Waiting Period
The Eligibility Waiting Period is the period of time the Employee must be in a Covered Class to be eligible for coverage.
For Employees hired on or before the Policy Effective Date: No Waiting Period
For Employees hired after the Policy Effective Date: No Waiting Period
Time Period for Loss:
Any Covered Loss must occur within: 365 days of the Covered Accident
Maximum Age for Insurance: None
BASIC ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS
Employee Principal Sum: 1 times Annual Compensation rouinded to the next higher $1,000
if not already a multiple thereof, subject to a maximum of
$325,000.
Changes in the Covered Person's amount of insurance resulting from a change in the Employee's amount of
Annual Compensation take effect, subject to any Active Service requirement, on the first day of the month
following the change in Annual Compensation.
SCHEDULE OF COVERED LOSSES
Covered Loss Benefit
Loss of Life 100% of the Principal Sum
Loss of Two or More Hands or Feet 100% of the Principal Sum
Loss of Sight of Both Eyes 100% of the Principal Sum
Loss of One Hand or One Foot and Sight in One Eye 100% of the Principal Sum
Loss of Speech and Hearing (in both ears) 100% of the Principal Sum
Quadriplegia 100% of the Principal Sum
Paraplegia 75% of the Principal Sum
Hemiplegia 50% of the Principal Sum
Uniplegia 25% of the Principal Sum
Coma
Monthly Benefit 1% of the Principal Sum
Number of Monthly Benefits 11
Lump Sum Benefit 100% of the Principal Sum
When Payable Beginning of the 12th month
Loss of One Hand or Foot 50% of the Principal Sum
Loss of Sight in One Eye 50% of the Principal Sum
Loss of Speech 50% of the Principal Sum
Loss of Hearing (in both ears) 50% of the Principal Sum
Loss of all Four Fingers of the Same Hand 25% of the Principal Sum
Loss of Thumb and Index Finger of the Same Hand 25% of the Principal Sum
Loss of all the Toes of the Same Foot 25% of the Principal Sum
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 79
12
Age Reductions
A Covered Person's Principal Sum will be reduced to the percentage of his Principal Sum in effect on the date
preceding the first reduction, as shown below.
Age Percentage of Benefit Amount
70 but less than 75 65%
75 and over 50%
ADDITIONAL ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGES
Accidental Death and Dismemberment benefits are provided under the following coverages. Any benefits payable under
them are as shown in the Schedule of Covered Losses and are not paid in addition to any other Accidental Death and
Dismemberment benefits.
EXPOSURE AND DISAPPEARANCE COVERAGE Principal Sum multiplied by the percentage applicable to the
Covered Loss, as shown in the Schedule of Covered Losses.
ADDITIONAL ACCIDENT BENEFITS
Any benefits payable under these Additional Accident Benefits shown below are paid in addition to any other Accidental
Death and Dismemberment benefits payable.
CHILD CARE CENTER BENEFIT
Benefit Amount $5,000
Maximum Benefit Period the earlier of 4 years or until the child turns 13 for each
surviving Dependent Child
COMMON CARRIER BENEFIT 100% multiplied by the percentage of the Principal Sum
applicable to the Covered Loss, as shown in the Schedule of
Covered Losses, subject to a maximum of $200,000
FELONIOUS ASSAULT AND VIOLENT CRIME BENEFIT
Accidental Death and Dismemberment Benefit 50% multiplied by the percentage of the Principal Sum
applicable to the Covered Loss, as shown in the Schedule of
Covered Losses, subject to a maximum of $25,000
Hospital Stay Benefit $100 per day
Maximum Benefit Period 365 days per Hospital Stay per Covered Accident
SEATBELT AND AIRBAG BENEFIT
Seatbelt Benefit $10,000
Airbag Benefit $5,000
Default Benefit $1,000
SPECIAL EDUCATION BENEFIT
Surviving Dependent Child Benefit $5,000
Maximum Number of Annual Payments
For Each Surviving Dependent Child 4
Default Benefit $1,000
SPOUSE RETRAINING BENEFIT
Benefit $5,000
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 80
13
VOLUNTARY ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS
Employee Principal Sum: Voluntary Benefits match the Voluntary Life Benefits under
policy number FLX 962659. Only Employees covered for the
Voluntary Life can elect Voluntary AD&D.
Changes in the Covered Person's amount of insurance resulting from a change in the Employee's amount of
Annual Compensation take effect, subject to any Active Service requirement, on the first day of the month
following the change in Annual Compensation.
SCHEDULE OF COVERED LOSSES
Covered Loss Benefit
Loss of Life 100% of the Principal Sum
Loss of Two or More Hands or Feet 100% of the Principal Sum
Loss of Sight of Both Eyes 100% of the Principal Sum
Loss of One Hand or One Foot and Sight in One Eye 100% of the Principal Sum
Loss of Speech and Hearing (in both ears) 100% of the Principal Sum
Quadriplegia 100% of the Principal Sum
Paraplegia 75% of the Principal Sum
Hemiplegia 50% of the Principal Sum
Uniplegia 25% of the Principal Sum
Coma
Monthly Benefit 1% of the Principal Sum
Number of Monthly Benefits 11
Lump Sum Benefit 100% of the Principal Sum
When Payable Beginning of the 12th month
Loss of One Hand or Foot 50% of the Principal Sum
Loss of Sight in One Eye 50% of the Principal Sum
Loss of Speech 50% of the Principal Sum
Loss of Hearing (in both ears) 50% of the Principal Sum
Loss of all Four Fingers of the Same Hand 25% of the Principal Sum
Loss of Thumb and Index Finger of the Same Hand 25% of the Principal Sum
Loss of all the Toes of the Same Foot 25% of the Principal Sum
Age Reductions
A Covered Person's Principal Sum will be reduced to the percentage of his Principal Sum in effect on the date
preceding the first reduction, as shown below.
Age Percentage of Benefit Amount
70 but less than 75 65%
75 and over 50%
ADDITIONAL ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGES
Accidental Death and Dismemberment benefits are provided under the following coverages. Any benefits payable under
them are as shown in the Schedule of Covered Losses and are not paid in addition to any other Accidental Death and
Dismemberment benefits.
EXPOSURE AND DISAPPEARANCE COVERAGE Principal Sum multiplied by the percentage applicable to the
Covered Loss, as shown in the Schedule of Covered Losses.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 81
14
ADDITIONAL ACCIDENT BENEFITS
Any benefits payable under these Additional Accident Benefits shown below are paid in addition to any other Accidental
Death and Dismemberment benefits payable.
CHILD CARE CENTER BENEFIT
Benefit Amount $5,000
Maximum Benefit Period the earlier of 4 years or until the child turns 13 for each
surviving Dependent Child
COMMON CARRIER BENEFIT 100% multiplied by the percentage of the Principal Sum
applicable to the Covered Loss, as shown in the Schedule of
Covered Losses, subject to a maximum of $200,000
FELONIOUS ASSAULT AND VIOLENT CRIME BENEFIT
Accidental Death and Dismemberment Benefit 50% multiplied by the percentage of the Principal Sum
applicable to the Covered Loss, as shown in the Schedule of
Covered Losses, subject to a maximum of $25,000
Hospital Stay Benefit $100 per day
Maximum Benefit Period 365 days per Hospital Stay per Covered Accident
SEATBELT AND AIRBAG BENEFIT
Seatbelt Benefit $10,000
Airbag Benefit $5,000
Default Benefit $1,000
SPECIAL EDUCATION BENEFIT
Surviving Dependent Child Benefit $5,000
Maximum Number of Annual Payments
For Each Surviving Dependent Child 4
Default Benefit $1,000
SPOUSE RETRAINING BENEFIT
Benefit $5,000
INITIAL PREMIUM RATES
Premium Rate: Basic Insurance
Employee Rate: $0.02 per $1,000
Voluntary Insurance
Employee Rate: $0.02 per $1,000
Mode of Premium Payment: Monthly
Contributions: The cost of the coverage is paid by the Subscriber and the Employee
Premium Due Dates: The Policy Effective Date and the first day of each succeeding modal
period
Premium rates are subject to change in accordance with the Changes in Premium Rates section contained in the
Administrative Provisions section of this Policy.
GA-00-1100.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 82
15
GENERAL DEFINITIONS
Please note that certain words used in this Policy have specific meanings. The words defined below and capitalized within
the text of this Policy have the meanings set forth below.
Active Service An Employee will be considered in Active Service with his employer on any day
that is either of the following:
1. one of the Employer’s scheduled work days on which the Employee is
performing his regular duties on a full-time basis, either at one of the
Employer’s usual places of business or at some other location to which the
Employer’s business requires the Employee to travel;
2. a scheduled holiday, vacation day or period of Employer-approved paid leave
of absence, other than sick leave, only if the Employee was in Active Service
on the preceding scheduled workday.
Age A Covered Person’s Age, for purposes of initial premium calculations, is his Age
attained on the date coverage becomes effective for him under this Policy.
Thereafter, it is his Age attained on his last birthday.
Aircraft A vehicle which:
1. has a valid certificate of airworthiness; and
2. is being flown by a pilot with a valid license to operate the Aircraft.
Annual Compensation An Employee's annual earnings for normal work established by the Subscriber for
his job classification, including commissions averaged over 12 months, excluding
bonuses or overtime.
Covered Accident A sudden, unforeseeable, external event that results, directly and independently of
all other causes, in a Covered Injury or Covered Loss and meets all of the
following conditions:
1. occurs while the Covered Person is insured under this Policy;
2. is not contributed to by disease, Sickness, mental or bodily infirmity;
3. is not otherwise excluded under the terms of this Policy.
Covered Injury Any bodily harm that results directly and independently of all other causes from a
Covered Accident.
Covered Loss A loss that is all of the following:
1. the result, directly and independently of all other causes, of a Covered
Accident;
2. one of the Covered Losses specified in the Schedule of Covered Losses;
3. suffered by the Covered Person within the applicable time period specified in
the Schedule of Benefits.
Covered Person An eligible person, as defined in the Schedule of Benefits, for whom an enrollment
form has been accepted by Us and required premium has been paid when due and
for whom coverage under this Policy remains in force.
Employee For eligibility purposes, an Employee of the Employer who is in one of the
Covered Classes.
Employer The Subscriber and any affiliates, subsidiaries or divisions shown in the Schedule
of Covered Affiliates and which are covered under this Policy on the date of issue
or subsequently agreed to by Us.
He, His, Him Refers to any individual, male or female.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 83
16
Hospital An institution that meets all of the following:
1. it is licensed as a Hospital pursuant to applicable law;
2. it is primarily and continuously engaged in providing medical care and
treatment to sick and injured persons;
3. it is managed under the supervision of a staff of medical doctors;
4. it provides 24-hour nursing services by or under the supervision of a graduate
registered nurse (R.N.);
5. it has medical, diagnostic and treatment facilities, with major surgical facilities
on its premises, or available on a prearranged basis;
6. it charges for its services.
The term Hospital does not include a clinic, facility, or unit of a Hospital for:
1. rehabilitation, convalescent, custodial, educational or nursing care;
2. the aged, drug addicts or alcoholics;
3. a Veteran’s Administration Hospital or Federal Government Hospital unless
the Covered Person incurs an expense.
Inpatient A Covered Person who is confined for at least one full day’s Hospital room and
board. The requirement that a person be charged for room and board does not
apply to confinement in a Veteran’s Administration Hospital or Federal
Government Hospital and in such case, the term 'Inpatient' shall mean a Covered
Person who is required to be confined for a period of at least a full day as
determined by the Hospital.
Nurse A licensed graduate Registered Nurse (R.N.), a licensed practical Nurse (L.P.N.) or
a licensed vocational Nurse (L.V.N.) and who is not:
1. employed or retained by the Subscriber;
2. living in the Covered Person’s household; or
3. a parent, sibling, spouse or child of the Covered Person.
Outpatient A Covered Person who receives treatment, services and supplies while not an
Inpatient in a Hospital.
Prior Plan The plan of insurance providing similar benefits, sponsored by the Employer in
effect immediately prior to this Policy’s Effective Date.
Physician A licensed health care provider practicing within the scope of his license and
rendering care and treatment to a Covered Person that is appropriate for the
condition and locality and who is not:
1. employed or retained by the Subscriber;
2. living in the Covered Person’s household;
3. a parent, sibling, spouse or child of the Covered Person.
Sickness A physical or mental illness.
Subscriber Any participating organization that subscribes to the trust to which this Policy is
issued.
Terrorist Act Any hostile or violent act carried out by a group of persons having political or
military goals but not operating on behalf of a foreign state and whose purpose is to
compel an act or omission by any other person or governmental entity.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 84
17
Totally Disabled or Totally Disabled or Total Disability means either:
Total Disability 1. inability of the Covered Person who is currently employed to do any type of
work for which he is or may become qualified by reason of education, training
or experience; or
2. inability of the Covered Person who is not currently employed to perform all
of the activities of daily living including eating, transferring, dressing,
toileting, bathing, and continence, without human supervision or assistance.
We, Us, Our Life Insurance Company of North America.
GA-00-1200.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 85
18
ELIGIBILITY AND EFFECTIVE DATE PROVISIONS
Subscriber Effective Date
Accident Insurance Benefits become effective for each Subscriber in consideration of the Subscriber’s application,
Subscription Agreement and payment of the initial premium when due. Insurance coverage for the Subscriber becomes
effective on the Effective Date of Subscriber Participation.
Eligibility
An Employee becomes eligible for insurance under this Policy on the date he meets all of the requirements of one of the
Covered Classes and completes any Eligibility Waiting Period, as shown in the Schedule of Benefits.
Effective Date for Individuals
Basic Accidental Death and Dismemberment Benefits
Insurance becomes effective for an eligible Employee, subject to the Deferred Effective Date provision below, on the latest
of the following dates:
1. the effective date of this Policy;
2. the date the Employee becomes eligible.
Voluntary Accidental Death and Dismemberment Benefits
Insurance becomes effective for an eligible Employee who applies and agrees to make required contributions within 31
days of eligibility, and subject to the Deferred Effective Date provision below, on the latest of the following dates:
1. the effective date of this Policy;
2. the date the Employee becomes eligible;
3. the date We receive the Employee’s completed enrollment form and the required first premium, during his
lifetime.
DEFERRED EFFECTIVE DATE
Active Service
The effective date of insurance will be deferred for any Employee who is not in Active Service on the date coverage would
otherwise become effective. Coverage will become effective on the later of the date he returns to Active Service and the
date coverage would otherwise have become effective.
Effective Date of Changes
Any increase or decrease in the amount of insurance for the Covered Person resulting from:
1. a change in benefits provided by this Policy; or
2. a change in the Employee’s Covered Class will take effect on the date of such change.
Increases will take effect subject to any Active Service requirement.
TERMINATION OF INSURANCE
The insurance on a Covered Person will end on the earliest date below:
1. the date this Policy or insurance for a Covered Class is terminated;
2. the next premium due date after the date the Covered Person is no longer in a Covered Class or satisfies eligibility
requirements under this Policy;
3. the last day of the last period for which premium is paid;
4. the next premium due date after the Covered Person attains the maximum Age for insurance under this Policy.
Termination will not affect a claim for a Covered Loss or Covered Injury that is the result, directly and independently of all
other causes, of a Covered Accident that occurs while coverage was in effect.
Continuation for Layoff, Leave of Absence or Family Medical Leave
Insurance for an Employee may be continued until the earliest of the following dates if: (a) an Employee is on a temporary
layoff, an Employer-approved leave of absence or an Employer-approved family medical leave; and (b) required premium
contributions are paid when due.
1. for a layoff: coverage continues through the end of the month in which the layoff begins;
2. for an Employer-approved leave of absence: coverage continues through the end of the month in which the leave
begins;
3. for an Employer-approved family medical leave: 12 weeks in a consecutive 12-month period.
GA-00-1300.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 86
19
COMMON EXCLUSIONS
In addition to any benefit-specific exclusions, benefits will not be paid for any Covered Injury or Covered Loss which,
directly or indirectly, in whole or in part, is caused by or results from any of the following unless coverage is specifically
provided for by name in the Description of Benefits Section:
1. intentionally self-inflicted injury, suicide or any attempt thereat while sane or insane;
2. commission or attempt to commit a felony or an assault;
3. commission of or active participation in a riot, insurrection or Terrorist Act;
4. bungee jumping; parachuting; skydiving; parasailing; hang-gliding;
5. declared or undeclared war or act of war;
6. flight in, boarding or alighting from an Aircraft or any craft designed to fly above the Earth’s surface:
a. except as a passenger on a regularly scheduled commercial airline;
b. being flown by the Covered Person or in which the Covered Person is a member of the crew;
c. being used for:
i. crop dusting, spraying or seeding, giving and receiving flying instruction, fire fighting, sky
writing, sky diving or hang-gliding, pipeline or power line inspection, aerial photography or
exploration, racing, endurance tests, stunt or acrobatic flying; or
ii. any operation that requires a special permit from the FAA, even if it is granted (this does not
apply if the permit is required only because of the territory flown over or landed on);
d. designed for flight above or beyond the earth’s atmosphere;
e. an ultra-light or glider;
f. being used for the purpose of parachuting or skydiving;
g. being used by any military authority, except an Aircraft used by the Air Mobility Command or its foreign
equivalent;
7. Sickness, disease, bodily or mental infirmity, bacterial or viral infection or medical or surgical treatment thereof,
except for any bacterial infection resulting from an accidental external cut or wound or accidental ingestion of
contaminated food;
8. travel in any Aircraft owned, leased or controlled by the Subscriber, or any of its subsidiaries or affiliates. An
Aircraft will be deemed to be ''controlled'' by the Subscriber if the Aircraft may be used as the Subscriber wishes
for more than 10 straight days, or more than 15 days in any year;
9. a Covered Accident that occurs while engaged in the activities of active duty service in the military, navy or air
force of any country or international organization. Covered Accidents that occur while engaged in Reserve or
National Guard training are not excluded until training extends beyond 31 days;
10. operating any type of vehicle while under the influence of alcohol or any drug, narcotic or other intoxicant
including any prescribed drug for which the Covered Person has been provided a written warning against
operating a vehicle while taking it. Under the influence of alcohol, for purposes of this exclusion, means
intoxicated, as defined by the law of the state in which the Covered Accident occurred;
11. voluntary ingestion of any narcotic, drug, poison, gas or fumes, unless prescribed or taken under the direction of a
Physician and taken in accordance with the prescribed dosage;
12. in addition, benefits will not be paid for services or treatment rendered by a Physician, Nurse or any other person
who is:
a. employed or retained by the Subscriber;
b. providing homeopathic, aroma-therapeutic or herbal therapeutic services;
c. living in the Covered Person’s household;
d. a parent, sibling, spouse or child of the Covered Person.
GA-00-1403.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 87
20
CONVERSION PRIVILEGE
1. If the Covered Person’s insurance or any portion of it ends for any of the following reasons:
a. employment or membership ends;
b. eligibility ends (except for age for the Employee);
the Covered Person may have Us issue converted accident insurance on an individual policy or an individual certificate
under a designated group policy. The Covered Person may apply for an amount of coverage that is:
a. in $1,000 increments;
b. not less than $25,000, regardless of the amount of insurance under the group policy; and
c. not more than the amount of insurance he had under the group policy, except as provided above, up to a maximum
amount of $250,000.
The Covered Person must be under age 70 to get a converted policy.
If the Covered Person’s insurance or any portion of it ends for non-payment of premium, he may not convert. If the
Covered Person’s insurance ends for a reason described in 2. below, conversion is subject to that section.
The converted policy or certificate will cover accidental death and dismemberment. The policy or certificate will not
contain disability or other additional benefits. The Covered Person need not show Us that he is insurable.
If the Covered Person has converted his group coverage and later becomes insured under the same group plan as
before, he may not convert a second time unless he provides, at his own expense, proof of insurability or proof the
prior converted policy is no longer in force.
The Covered Person must apply for the individual policy within 31 days after his coverage under this Group Policy
ends and pay the required premium, based on Our table of rates for such policies, his Age and class of risk. If the
Covered Person has assigned ownership of his group coverage, the owner/assignee must apply for the individual
policy.
If the Covered Person suffers a Covered Loss or dies during this 31-day period as the result of an accident that would
have been covered under this Group Policy, We will pay as a claim under this Group Policy the amount of insurance
that the Covered Person was entitled to convert. It does not matter whether the Covered Person applied for the
individual policy or certificate. If such policy or certificate is issued, it will be in exchange for any other benefits under
this Group Policy.
The individual policy or certificate will take effect on the day following the date coverage under the Group Policy
ended; or, if later, the date application is made.
Exclusions
The converted policy may exclude the hazards or conditions that apply to the Covered Person’s group coverage at the
time it ends. We will reduce payment under the converted policy by the amount of any benefits paid under the group
policy if both cover the same loss.
2. If the Covered Person’s insurance ends because this Group Policy is terminated or is amended to terminate insurance
for the Covered Person’s class, and he has been covered under this Group Policy or, any group accident insurance
issued to the Employer which the Group Policy replaced, for at least five years, the Covered Person may have Us issue
an individual policy or certificate of accident insurance subject to the same terms, conditions and limitations listed
above. However, the amount he may apply for will be limited to the lesser of the following:
a. coverage under this Group Policy less any amount of group accident insurance for which he is eligible on the date
this Group Policy is terminated or for which he became eligible within 31 days of such termination, or
b. $10,000.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 88
21
Extension of Conversion Period
If the Covered Person is eligible to convert and is not notified of this right at least 15 days prior to the end of the 31 day
conversion period, the conversion period will be extended. The Covered Person will have 15 days from the date notice is
given to apply for a converted policy or certificate. In no event will the conversion period be extended beyond 90 days.
Notice, for the purpose of this section, means written notice presented to the Covered Person by the Subscriber or mailed to
the Covered Person’s last known address as reported by the Subscriber.
If the Covered Person sustains a Covered Loss or dies during the extended conversion period, but more than 31 days after
his coverage under the Group Policy terminates, benefits will not be paid under the Group Policy. If the Covered Person’s
application for a converted policy or certificate is received by Us and the required premium is paid, benefits may be payable
under the converted policy or certificate.
GA-01-1505.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 89
22
CLAIM PROVISIONS
Notice of Claim
Written or authorized electronic/telephonic notice of claim must be given to Us within 31 days after a Covered Loss occurs
or begins or as soon as reasonably possible. If written or authorized electronic/telephonic notice is not given in that time,
the claim will not be invalidated or reduced if it is shown that written or authorized electronic/telephonic notice was given
as soon as was reasonably possible. Notice can be given to Us at Our Home Office in Philadelphia, Pennsylvania, such
other place as We may designate for the purpose, or to Our authorized agent. Notice should include the Subscriber's name
and policy number and the Covered Person’s name, address, policy and certificate number.
Claim Forms
We will send claim forms for filing proof of loss when We receive notice of a claim. If such forms are not sent within 15
days after We receive notice, the proof requirements will be met by submitting, within the time fixed in this Policy for
filing proof of loss, written or authorized electronic proof of the nature and extent of the loss for which the claim is made.
Claimant Cooperation Provision
Failure of a claimant to cooperate with Us in the administration of the claim may result in termination of the claim. Such
cooperation includes, but is not limited to, providing any information or documents needed to determine whether benefits
are payable or the actual benefit amount due.
Proof of Loss
Written or authorized electronic proof of loss satisfactory to Us must be given to Us at Our office, within 90 days of the
loss for which claim is made. If (a) benefits are payable as periodic payments and (b) each payment is contingent upon
continuing loss, then proof of loss must be submitted within 90 days after the termination of each period for which We are
liable. If written or authorized electronic notice is not given within that time, no claim will be invalidated or reduced if it is
shown that such notice was given as soon as reasonably possible. In any case, written or authorized electronic proof must
be given not more than one year after the time it is otherwise required, except if proof is not given solely due to the lack of
legal capacity.
Time of Payment of Claims
We will pay benefits due under this Policy for any loss other than a loss for which this Policy provides any periodic
payment immediately upon receipt of due written or authorized electronic proof of such loss. Subject to due written or
authorized electronic proof of loss, all accrued benefits for loss for which this Policy provides periodic payment will be
paid monthly unless otherwise specified in the benefits descriptions and any balance remaining unpaid at the termination of
liability will be paid immediately upon receipt of proof satisfactory to Us.
Payment of Claims
All benefits will be paid in United States currency. Benefits for loss of life will be payable in accordance with the
Beneficiary provision and these Claim Provisions. All other proceeds payable under this Policy, unless otherwise stated,
will be payable to the covered Employee or to his estate.
If We are to pay benefits to the estate or to a person who is incapable of giving a valid release, We may pay $1,000 to a
relative by blood or marriage whom We believe is equitably entitled. Any payment made by Us in good faith pursuant to
this provision will fully discharge Us to the extent of such payment and release Us from all liability.
Payment of Claims to Foreign Employees
The Subscriber may, in a fiduciary capacity, receive and hold any benefits payable to covered Employees whose place of
employment is other than the United States of America.
We will not be responsible for the application or disposition by the Subscriber of any such benefits paid. Our payments to
the Subscriber will constitute a full discharge of Our liability for those payments under this Policy.
Physical Examination and Autopsy
We, at Our own expense, have the right and opportunity to examine the Covered Person when and as often as We may
reasonably require while a claim is pending and to make an autopsy in case of death where it is not forbidden by law.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 90
23
Legal Actions
No action at law or in equity may be brought to recover under this Policy less than 60 days after written or authorized
electronic proof of loss has been furnished as required by this Policy. No such action will be brought more than three years
after the time such written proof of loss must be furnished.
Beneficiary
The beneficiary is the person or persons the Employee names or changes on a form executed by him and satisfactory to Us.
This form may be in writing or by any electronic means agreed upon between Us and the Subscriber. Consent of the
beneficiary is not required to affect any changes, unless the beneficiary has been designated as an irrevocable beneficiary,
or to make any assignment of rights or benefits permitted by this Policy.
A beneficiary designation or change will become effective on the date the Employee executes it. However, We will not be
liable for any action taken or payment made before We record notice of the change at our Home Office.
If more than one person is named as beneficiary, the interests of each will be equal unless the Employee has specified
otherwise. The share of any beneficiary who does not survive the Covered Person will pass equally to any surviving
beneficiaries unless otherwise specified.
If there is no named beneficiary or surviving beneficiary, or if the Employee dies while benefits are payable to him, We
may make direct payment to the first surviving class of the following classes of persons:
1. spouse;
2. child or children;
3. mother or father;
4. sisters or brothers;
5. estate of the Covered Person.
Recovery of Overpayment
If benefits are overpaid, We have the right to recover the amount overpaid by either of the following methods.
1. A request for lump sum payment of the overpaid amount.
2. A reduction of any amounts payable under this Policy.
If there is an overpayment due when the Covered Person dies, We may recover the overpayment from the Covered Person’s
estate.
GA-00-1600.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 91
24
ADMINISTRATIVE PROVISIONS
Premiums
All premium rates are expressed in, and all premiums are payable in, United States currency. The premiums for this Policy
will be based on the rates set forth in the Schedule of Benefits, the plan and amounts of insurance in effect. If a Covered
Person’s insurance amounts are reduced due to age, premium will be based on the amounts of insurance in force on the day
after the reduction took place.
Changes in Premium Rates
We may change the premium rates from time to time with at least 31 days advance written notice to the Subscriber. No
change in rates will be made until 48 months after the Policy Effective Date. An increase in rates will not be made more
often than once in a 12-month period. However, We reserve the right to change rates at any time if any of the following
events take place:
1. the terms of this Policy change;
2. the terms of the Subscriber's participation change;
3. a division, subsidiary, affiliated company or eligible class is added or deleted from this Policy;
4. there is a change in the factors bearing on the risk assumed;
5. any federal or state law or regulation is amended to the extent it affects Our benefit obligation.
Payment of Premium
The first premium is due on the Subscriber's effective date of participation under this Policy. Thereafter, premiums are due
on the Premium Due Dates agreed upon between Us and the Subscriber. If any premium is not paid when due, the
Subscriber's participation under this Policy will be terminated as of the Premium Due Date on which premium was not paid.
Grace Period
A Grace Period of 60 days will be granted to each Subscriber for payment of required premiums under this Policy. A
Subscriber's participation under this Policy will remain in effect during the Grace Period. The Subscriber is liable to Us for
any unpaid premium for the time its participation under this Policy was in force.
A Grace Period of 60 days will be granted for payment of required premiums under this Policy. A Covered Person’s
insurance under this Policy will remain in force during the Grace Period. We will reduce any benefits payable for any
claims incurred during the grace period by the amount of premium due. If no such claims are incurred and premium is not
paid during the grace period, insurance will end on the last day of the period for which premiums were paid.
GA-00-1701.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 92
25
GENERAL PROVISIONS
Entire Contract; Changes
This Policy, including the endorsements, amendments and any attached papers constitutes the entire contract of insurance.
No change in this Policy will be valid until approved by one of Our executive officers and endorsed on or attached to this
Policy. No agent has authority to change this Policy or to waive any of its provisions.
Subscriber Participation Under This Policy
An organization may elect to participate under this Policy by submitting a signed Subscriber participation agreement to the
Policyholder. No participation by an organization is in effect until approved by Us.
Misstatement of Fact
If the Covered Person has misstated any fact, all amounts payable under this Policy will be such as the premium paid would
have purchased had such fact been correctly stated.
Certificates
Where required by law, We will provide a certificate of insurance for delivery to the Covered Person. Each certificate will
list the benefits, conditions and limits of this Policy. It will state to whom benefits will be paid.
30 Day Right To Examine Certificate
If a Covered Person does not like the Certificate for any reason, it may be returned to Us within 30 days after receipt. We
will return any premium that has been paid and the Certificate will be void as if it had never been issued.
Multiple Certificates
The Covered Person may have in force only one certificate at a time under this Policy. If at any time the Covered Person
has been issued more than one certificate, then only the largest shall be in effect. We will refund premiums paid for the
others for any period of time that more than one certificate was issued.
Assignment
We will be bound by an assignment of a Covered Person's insurance under this Policy only when the original assignment or
a certified copy of the assignment, signed by the Covered Person and any irrevocable beneficiary, is filed with Us. The
assignee may exercise all rights and receive all benefits assigned only while the assignment remains in effect and insurance
under this Policy and the Covered Person’s certificate remains in force.
Incontestability
1. Of This Policy or Participation Under This Policy
All statements made by the Subscriber to obtain this Policy or to participate under this Policy are considered representations
and not warranties. No statement will be used to deny or reduce benefits or be used as a defense to a claim, or to deny the
validity of this Policy or of participation under this Policy unless a copy of the instrument containing the statement is, or
has been, furnished to the Subscriber.
After two years from the Policy Effective Date, no such statement will cause this Policy to be contested except for fraud.
2. Of A Covered Person's Insurance
All statements made by a Covered Person are considered representations and not warranties. No statement will be used to
deny or reduce benefits or be used as a defense to a claim, unless a copy of the instrument containing the statement is, or
has been, furnished to the claimant.
After two years from the Covered Person’s effective date of insurance, or from the effective date of increased benefits, no
such statement will cause insurance or the increased benefits to be contested except for fraud or lack of eligibility for
insurance.
In the event of death or incapacity, the beneficiary or representative shall be given a copy.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 93
26
Policy Termination
We may terminate coverage on or after the first anniversary of the policy effective date. The Subscriber may terminate
coverage on any premium due date. Written or authorized electronic notice must be given at least 31 days prior to such
premium due date.
Termination will not affect a claim for a Covered Loss that is the result, directly and independently of all other causes, of a
Covered Accident that occurs while coverage was in effect.
Reinstatement
This Policy may be reinstated if it lapsed for nonpayment of premium. Requirements for reinstatement are written
application of the Subscriber satisfactory to Us and payment of all overdue premiums. Any premium accepted in
connection with a reinstatement will be applied to a period for which premium was not previously paid.
Clerical Error
A Covered Person's insurance will not be affected by error or delay in keeping records of insurance under this Policy. If
such error or delay is found, We will adjust the premium fairly.
Conformity with Statutes
Any provisions in conflict with the requirements of any state or federal law that apply to this Policy are automatically
changed to satisfy the minimum requirements of such laws.
Policy Changes
We may agree with the Subscriber to modify a plan of benefits without the Covered Person’s consent.
Workers’ Compensation Insurance
This Policy is not in place of and does not affect any requirements for coverage under any Workers’ Compensation law.
Examination of the Policy
This Group Policy will be available for inspection at the Subscriber's office during regular business hours.
Examination of Records
We will be permitted to examine all of the Subscriber's records relating to this Group Policy. Examination may occur at
any reasonable time while the Group Policy is in force; or it may occur:
1. at any time for two years after the expiration of this Group Policy; or, if later,
2. upon the final adjustment and settlement of all Group Policy claims.
The Subscriber is acting as an agent of the Covered Person for transactions relating to this insurance. The actions of the
Subscriber will not be considered Our actions.
GA-00-1800.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 94
27
DESCRIPTION OF COVERAGES AND BENEFITS
This Description of Coverages and Benefits Section describes the Accident Coverages and Benefits provided to You.
Benefit amounts, benefit periods and any applicable aggregate and benefit maximums are shown in the Schedule of
Benefits. Certain words capitalized in the text of these descriptions have special meanings within this Certificate
and are defined in the General Definitions section. Please read these and the Common Exclusions sections in order to
understand all of the terms, conditions and limitations applicable to these coverages and benefits.
ACCIDENTAL DEATH AND DISMEMBERMENT BENEFITS
Covered Loss We will pay the benefit for any one of the Covered Losses listed in the Schedule of Benefits, if the
Covered Person suffers a Covered Loss resulting directly and independently of all other causes from a
Covered Accident within the applicable time period specified in the Schedule of Benefits.
If the Covered Person sustains more than one Covered Loss as a result of the same Covered Accident,
benefits will be paid for the Covered Loss for which the largest available benefit is payable. If the loss
results in death, benefits will only be paid under the Loss of Life benefit provision. Any Loss of Life
benefit will be reduced by any paid or payable Accidental Dismemberment benefit. However, if such
Accidental Dismemberment benefit equals or exceeds the Loss of Life benefit, no additional benefit will
be paid.
Definitions Loss of a Hand or Foot means complete Severance through or above the wrist or ankle joint.
Loss of Sight means the total, permanent loss of all vision in one eye which is irrecoverable by natural,
surgical or artificial means.
Loss of Speech means total and permanent loss of audible communication which is irrecoverable by
natural, surgical or artificial means.
Loss of Hearing means total and permanent loss of ability to hear any sound in both ears which is
irrecoverable by natural, surgical or artificial means.
Loss of a Thumb and Index Finger of the Same Hand or Four Fingers of the Same Hand means
complete Severance through or above the metacarpophalangeal joints of the same hand (the joints
between the fingers and the hand).
Loss of Toes means complete Severance through the metatarsalphalangeal joint.
Paralysis or Paralyzed means total loss of use of a limb. A Physician must determine the loss of use to
be complete and irreversible.
Quadriplegia means total Paralysis of both upper and both lower limbs.
Hemiplegia means total Paralysis of the upper and lower limbs on one side of the body.
Paraplegia means total Paralysis of both lower limbs or both upper limbs.
Uniplegia means total Paralysis of one upper or one lower limb.
Coma means a profound state of unconsciousness which resulted directly and independently from all
other causes from a Covered Accident, and from which the Covered Person is not likely to be aroused
through powerful stimulation. This condition must be diagnosed and treated regularly by a Physician.
Coma does not mean any state of unconsciousness intentionally induced during the course of treatment of
a Covered Injury unless the state of unconsciousness results from the administration of anesthesia in
preparation for surgical treatment of that Covered Accident.
Severance means the complete and permanent separation and dismemberment of the part from the body.
Exclusions The exclusions that apply to this benefit are in the Common Exclusions section.
GA-00-2100.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 95
28
ADDITIONAL ACCIDENTAL DEATH AND DISMEMBERMENT COVERAGES
Accidental Death and Dismemberment benefits are provided under the following coverages. Any benefits payable under
them are shown in the Schedule of Covered Losses and will not be paid in addition to any other Accidental Death and
Dismemberment benefits payable.
EXPOSURE AND DISAPPEARANCE COVERAGE
Benefits for Accidental Death and Dismemberment, as shown in the Schedule of Covered Losses, will be payable if a
Covered Person suffers a Covered Loss which results directly and independently of all other causes from unavoidable
exposure to the elements following a Covered Accident.
If the Covered Person disappears and is not found within one year from the date of the wrecking, sinking or disappearance
of the conveyance in which the Covered Person was riding in the course of a trip which would otherwise be covered under
this Policy, it will be presumed that the Covered Person’s death resulted directly and independently of all other causes from
a Covered Accident.
Exclusions The exclusions that apply to this coverage are in the Common Exclusions Section.
GA-00-2202.00
ADDITIONAL ACCIDENT BENEFITS
Accidental Death and Dismemberment benefits are provided under the following Additional Benefits. Any benefits
payable under them will be paid in addition to any other Accidental Death and Dismemberment benefit payable.
CHILD CARE CENTER BENEFIT
We will pay benefits shown in the Schedule of Benefits for the care of each surviving Dependent Child in a Child Care
Center if death of the covered Employee results directly and independently of all other causes from a Covered Accident and
all of the following conditions are met:
1. coverage for his Dependent Children was in force on the date of the Covered Accident causing his death; and
2. one or more surviving Dependent Children is under Age 13 and:
a. was enrolled in a Child Care Center on the date of the Covered Accident; or
b. enrolls in a Child Care Center within 90 days from the date of the Covered Accident.
This benefit will be payable to the Surviving Spouse if the Spouse has custody of the child. If the Surviving Spouse does
not have custody of the child, benefits will be paid to the child’s legally appointed guardian. Payments will be made at the
end of each 12 month period that begins after the date of the covered Employee’s death. A claim must be submitted to Us
at the end of each 12 month period. A 12 month period begins:
1. when the Dependent Child enters a Child Care Center for the first time, within the period specified in (2b) above,
after the covered Employee’s death; or
2. on the first of the month following the covered Employee’s death, if the Dependent Child was enrolled in a Child
Care Center before the covered Employee’s death.
Each succeeding 12 month period begins on the day immediately following the last day of the preceding period. Pro rata
payments will be made for periods of enrollment in a Child Care Center of less than 12 months.
Definitions For purposes of this benefit:
Child Care Center is a facility which:
1. is licensed and run according to laws and regulations applicable to child care facilities; and
2. provides care and supervision for children in a group setting on a regular, daily basis.
A Child Care Center does not include any of the following:
1. a Hospital;
2. the child’s home;
3. care provided during normal school hours while a child is attending grades one through twelve.
Exclusions The exclusions that apply to this benefit are in the Common Exclusions Section.
GA-00-2222.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 96
29
COMMON CARRIER BENEFIT
We will pay the benefit shown in the Schedule of Benefits if the Covered Person suffers a Covered Loss that results directly
and independently of all other causes from a Covered Accident that occurs while riding as a fare-paying passenger in, or
being struck by, a Common Carrier. Riding includes getting into and out of the Common Carrier.
Definition For purposes of this benefit:
Common Carrier means:
1. a public conveyance, including Aircraft, licensed for hire to carry fare-paying
passengers; or
2. a transport Aircraft operated by the Air Mobility Command of the United States of
America or a similar air transport service of another country.
Exclusions The exclusions that apply to this benefit are in the Common Exclusions Section.
GA-00-2225.00
FELONIOUS ASSAULT AND VIOLENT CRIME BENEFIT
We will pay the amount shown in the Schedule of Benefits, subject to the following conditions and exclusions, when the
Covered Employee suffers a Covered Loss resulting directly and independently of all other causes from a Covered Accident
that occurs during a violent crime or felonious assault as described below. A police report detailing the felonious assault or
violent crime must be provided before any benefits will be paid. The Covered Accident must occur while the Covered
Person is on the business or premises of the Employer.
To qualify for benefit payment, the Covered Accident must occur during any of the following:
1. actual or attempted robbery or holdup;
2. actual or attempted kidnapping;
3. any other type of intentional assault that is a crime classified as a felony by the governing statute or common law
in the state where the felony occurred.
We will pay a Hospital Stay Benefit, subject to the following conditions and exclusions, when the Covered Person suffers a
Covered Loss resulting directly and independently of all other causes from a Covered Accident that occurs during a violent
crime or felonious assault if all of the following conditions are met:
1. the Covered Person is covered for Hospital Stay benefits under this Policy;
2. the Hospital Stay begins within 30 days of the violent crime/felonious assault;
3. the Hospital Stay is at the direction and under the care of a Physician;
4. the Covered Person provides proof satisfactory to Us that his Hospital Stay was necessitated to treat Covered
Injuries sustained in a Covered Accident caused solely by a violent crime or felonious assault;
5. the Hospital Stay begins while the Covered Person’s insurance is in effect.
The benefit will be paid for each day of a continuous Hospital Stay.
Definitions For purposes of this benefit:
Family Member means the Covered Person’s parent, step-parent, Spouse or former Spouse,
son, daughter, brother, sister, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-
in-law, sister-in-law, aunt, uncle, cousins, grandparent, grandchild and stepchild.
Fellow Employee means a person employed by the same Employer as the Covered Person or by
an Employer that is an affiliated or subsidiary corporation. It shall also include any person who
was so employed, but whose employment was terminated not more than 45 days prior to the date
on which the defined violent crime/felonious assault was committed.
Member of the Same Household means a person who maintains residence at the same address
as the Covered Person.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 97
30
Exclusions Benefits will not be paid for treatment of any Covered Injury sustained or Covered Loss incurred during
any:
1. violent crime or felonious assault committed by the Covered Person; or
2. felonious assault or violent crime committed upon the Covered Person by a Fellow
Employee, Family Member, or Member of the Same Household.
Other exclusions that apply to this benefit are in the Common Exclusions Section.
GA-00-2234.00
SEATBELT AND AIRBAG BENEFIT
We will pay the benefit shown in the Schedule of Benefits, subject to the conditions and exclusions described below, when
the Covered Person dies directly and independently of all other causes from a Covered Accident while wearing a seatbelt
and operating or riding as a passenger in an Automobile. An additional benefit is provided if the Covered Person was also
positioned in a seat protected by a properly-functioning and properly deployed Supplemental Restraint System (Airbag).
Verification of proper use of the seatbelt at the time of the Covered Accident and that the Supplemental Restraint System
properly inflated upon impact must be a part of an official police report of the Covered Accident or be certified, in writing,
by the investigating officer(s) and submitted with the Covered Person’s claim to Us.
If such certification or police report is not available or it is unclear whether the Covered Person was wearing a seatbelt or
positioned in a seat protected by a properly functioning and properly deployed Supplemental Restraint System, We will pay
a default benefit shown in the Schedule of Benefits to the Covered Person’s beneficiary.
In the case of a child, seatbelt means a child restraint, as required by state law and approved by the National Highway
Traffic Safety Administration, properly secured and being used as recommended by its manufacturer for children of like
Age and weight at the time of the Covered Accident.
Definitions For purposes of this benefit:
Supplemental Restraint System means an airbag that inflates upon impact for added protection to the
head and chest areas.
Automobile means a self-propelled, private passenger motor vehicle with four or more wheels which is a
type both designed and required to be licensed for use on the highway of any state or country.
Automobile includes, but is not limited to, a sedan, station wagon, sport utility vehicle, or a motor vehicle
of the pickup, van, camper, or motor-home type. Automobile does not include a mobile home or any
motor vehicle which is used in mass or public transit.
Exclusions The exclusions that apply to this benefit are in the Common Exclusions Section.
GA-00-2251.00
SPECIAL EDUCATION BENEFIT
We will pay the benefit, up to the Maximum Benefit shown in the Schedule of Benefits, for each qualifying Dependent
Child. The Covered Person’s death must result, directly and independently of all other causes from a Covered Accident for
which an Accidental Death Benefit is payable under this Policy. This benefit is subject to the conditions and exclusions
described below.
A qualifying Dependent Child must:
1. enroll as a full-time student at an accredited school of higher learning before reaching the limiting Age for
dependent eligibility stated in this Policy;
2. continue his education as a full-time student; and
3. incur expenses for tuition, fees, books, room and board, transportation and any other costs payable directly to, or
approved and certified by, such school.
A qualifying surviving Spouse must:
1. enroll in any accredited school for the purpose of retraining or refreshing skills needed for employment within one
year of the date of the covered Employee’s Covered Accident;
2. remain enrolled in such accredited school; and
3. incur expenses payable directly to, or approved by, such school.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 98
31
Payments will be made to each qualifying Dependent Child or to the child’s legal guardian, if the child is a minor at the end
of each year for the number of years shown in the Schedule of Benefits. We must receive proof satisfactory to Us of the
Dependent Child’s enrollment and attendance within 31 days of the end of each year. The first year for which a Special
Education Benefit is payable will begin on the first of the month following the date the covered Employee died, if the
surviving Dependent Child was enrolled on that date in an accredited school of higher learning beyond the 12th grade;
otherwise on the date he enrolls in such school. Each succeeding year for which benefits are payable will begin on the date
following the end of the preceding year.
If no Dependent Child qualifies for Special Education Benefits within 365 days of the covered Employee’s death, We will
pay the default benefit shown in the Schedule of Benefits to the covered Employee’s beneficiary.
Payments will be made to the surviving Spouse at the end of each year for the number of years shown in the Schedule of
Benefits. We must receive proof satisfactory to Us of the Spouse’s enrollment and attendance within 31 days of the end of
each year. The first year for which a Special Education Benefit is payable will begin on the date the surviving Spouse
enrolls in an accredited school for the first time following the date the Employee died. Each succeeding year for which
benefits are payable will begin on the date following the end of the preceding year.
If a surviving Spouse does not qualify for Special Education Benefits within 365 days of the covered Employee’s death, We
will pay the default benefit shown in the Schedule of Benefits to the covered Employee’s beneficiary.
Definitions For the purposes of this benefit:
Dependent Child(ren) An Employee’s unmarried child who meets the following requirements:
1. A child from live birth to 19 years old;
2. A child who is 19 or more years old but less than 25 years old, enrolled in a school as a full-time
student and primarily supported by the Employee;
3. A child who is 19 or more years old, primarily supported by the Employee and incapable of self-
sustaining employment by reason of mental or physical handicap. Proof of the child’s condition
and dependence must be submitted to Us within 31 days after the date the child ceases to qualify
as a Dependent Child for the reasons listed above. During the next two years, We may, from
time to time, require proof of the continuation of such condition and dependence. After that, We
may require proof no more than once a year.
A child, for purposes of this provision, includes an Employee’s:
1. natural child;
2. adopted child, beginning with any waiting period pending finalization of the child’s adoption;
3. stepchild who resides with the Employee;
4. child for whom the Employee is legal guardian, as long as the child resides with the Employee
and depends on the Employee for financial support. Financial support means that the Employee
is eligible to claim the dependent for purposes of Federal and State income tax returns.
Spouse the Employee’s lawful spouse under age 70.
Exclusions The exclusions that apply to this benefit are in the Common Exclusions Section.
GA-00-2252a.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 99
32
SPOUSE RETRAINING BENEFIT
We will pay expenses incurred, as described below, up to the Maximum Benefit shown in the Schedule of Benefits, to
enable the covered Employee’s Spouse to obtain occupational or educational training needed for employment if the covered
Employee dies directly and independently of all other causes from a Covered Accident. This benefit is subject to the
conditions and exclusions described below.
This benefit will be payable if the covered Employee dies within one year of a Covered Accident and is survived by his
Spouse who:
1. enrolls, within three years after the covered Employee’s death in any accredited school for the purpose of
retraining or refreshing skills needed for employment; and
2. incurs expenses payable directly to, or approved and certified by, such school.
If there is no surviving Spouse at the time of the covered Employee’s Covered Accidental Death, the Default Benefit shown
in the Schedule of Benefits will be paid to the covered Employee’s beneficiary.
Definitions For the purposes of this benefit:
Spouse will include the Employee’s lawful spouse under age 70.
Exclusions The exclusions that apply to this benefit are in the Common Exclusions Section.
GA-00-2254a.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 100
LIFE INSURANCE COMPANY OF NORTH AMERICA
Philadelphia, PA 19192-2235
We, City of Palo Alto, whose main office address is Palo Alto, CA, hereby approve and accept the terms of Group Policy
Number OK 964302 issued by the LIFE INSURANCE COMPANY OF NORTH AMERICA to the TRUSTEE OF THE
GROUP INSURANCE TRUST FOR EMPLOYERS IN THE PUBLIC ADMINISTRATION INDUSTRY.
This form is to be signed in duplicate. One part is to be retained by City of Palo Alto; the other part is to be returned to the
LIFE INSURANCE COMPANY OF NORTH AMERICA.
City of Palo Alto
Signature and Title:____________________________________________ Date: __________________________
(This Copy Is To Be Returned To Life Insurance Company of North America)
-------------------------------------------------------------------------------------------------------------------------------------------
LIFE INSURANCE COMPANY OF NORTH AMERICA
Philadelphia, PA 19192-2235
We, City of Palo Alto, whose main office address is Palo Alto, CA, hereby approve and accept the terms of Group Policy
Number OK 964302 issued by the LIFE INSURANCE COMPANY OF NORTH AMERICA to the TRUSTEE OF THE
GROUP INSURANCE TRUST FOR EMPLOYERS IN THE PUBLIC ADMINISTRATION INDUSTRY.
This form is to be signed in duplicate. One part is to be retained by City of Palo Alto; the other part is to be returned to the
LIFE INSURANCE COMPANY OF NORTH AMERICA.
City of Palo Alto
Signature and Title:____________________________________________ Date: __________________________
(This Copy Is To Be Retained By City of Palo Alto)
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 101
LIFE INSURANCE COMPANY OF NORTH AMERICA
(herein called the Company)
Amendment to be attached to and made a part of the Group Policy
A Contract between the Company and
Policyholder: Trustee of the Group Insurance Trust for Employers in the Public Administration Industry
Participating Subscriber: City of Palo Alto
(herein called the Subscriber)
Policy No.: LK - 961943
The Company and the Subscriber hereby agree that the Policy is amended as follows:
1. Effective January 1, 2022, the following rates will be in force for Classes 1 for coverage under the Policy:
Option 1
$1.07 per $100 of Covered Payroll
Covered Payroll for an Employee will mean his or her Covered Earnings for the insurance month prior to the date the
determination is made. However, an Employee's Covered Payroll will not include any part of his or her monthly
Covered Earnings which exceed $6,000.
Option 2
$.51 per $100 of Covered Payroll
Covered Payroll for an Employee will mean his or her Covered Earnings for the insurance month prior to the date the
determination is made. However, an Employee's Covered Payroll will not include any part of his or her monthly
Covered Earnings which exceed $3,000.
2. Effective January 1, 2022, the following rates will be in force for Class 2 and 3 for coverage under the Policy:
$.56 per $100 of Covered Payroll
Covered Payroll for an Employee will mean his or her Covered Earnings for the insurance month prior to the date the
determination is made. However, an Employee's Covered Payroll will not include any part of his or her monthly
Covered Earnings which exceed $15,000.
No change in rates will be made until 36 months after the effective date of this Amendment. However, the Company
reserves the right to change the rates at any time during a period for which the rates are guaranteed if the conditions
described in the Changes in Premium Rates provision under the Administrative Provisions section of the Policy apply.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 102
Except for the above, this Amendment does not change the Policy in any way.
FOR THE COMPANY
William J. Smith, President
Date: August 26, 2021
Amendment No. 03a
TL-004780
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 103
CALIFORNIA LIFE AND HEALTH INSURANCE
GUARANTY ASSOCIATION ACT
SUMMARY DOCUMENT AND DISCLAIMER
Residents of California who purchase life and health insurance and annuities should know that the insurance
companies licensed in this state to write these types of insurance are members of the California Life and Health
Insurance Guaranty Association. The purpose of this Association is to assure that policyholders will be protected,
within limits, in the unlikely event that a member insurer becomes financially unable to meet its obligations. If
this should happen, the Association will assess its other member insurance companies for the money to pay the
claims of insured persons who live in this state and, in some cases, to keep coverage in force. The valuable extra
protection provided through the Association is not unlimited, as noted in the box below, and is not a substitute for
consumers' care in selecting well managed and financially stable insurers.
The California Life and Health Insurance Guaranty Association may not provide coverage for this
insurance. If coverage is provided, it may be subject to substantial limitations or exclusions, and require
continued residency in the state. You should not rely on coverage by the Association in selecting an
insurance company or in selecting an insurance policy.
Coverage is NOT provided for your insurance or any portion of it that is not guaranteed by the Insurer
or for which you have assumed the risk, such as a variable contract sold by prospectus.
Insurance companies or their agents are required by law to give or send you this notice. However,
insurance companies and their agents are prohibited by law from using the existence of the Association
to induce you to purchase any kind of insurance policy.
If you have additional questions, you should first contact your insurer or agent and then may contact:
California Life and Health OR Consumer Service Division
Insurance Guaranty Association California Department of Insurance
P.O. Box 16860 300 South Spring Street
Beverly Hills, CA 90209 Los Angeles, CA 90013
Below is a brief summary of this law's coverages, exclusions and limits. This summary does not cover all
provisions of the law; nor does it in any way change anyone's rights or obligations under the Act or the
rights or obligations of the Association.
EXHIBIT “A-3”
LONG TERM DISABILITY INSURANCE POLICY DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 104
COVERAGE
Generally, individuals will be protected by the California Life and Health Insurance Guaranty Association
if they live in this state and hold a life or health insurance contract, or an annuity, or if they are insured
under a group insurance contract, issued by a member insurer. The beneficiaries, payees or assignees of
insured persons are protected as well, even if they live in another state.
EXCLUSIONS FROM COVERAGE
However, persons holding such policies are not protected by this Association if:
their insurer was not authorized to do business in this state when it issued the policy or contract;
their policy was issued by a health care service plan (HMO), Blue Cross, Blue Shield, a charitable
organization, a fraternal benefit society, a mandatory state pooling plan, a mutual assessment
company, an insurance exchange, or a grants and annuities society;
they are eligible for protection under the laws of another state. This may occur when the insolvent
insurer was incorporated in another state whose Guaranty Association protects insureds who live
outside that state.
The Association also does not provide coverage for:
unallocated annuity contracts; that is, contracts which are not issued to and owned by an individual
and which guarantee rights to group contract holders, not individuals;
employer and association plans to the extent they are self-funded or uninsured;
synthetic guaranteed interest contracts;
any policy or portion of a policy which is not guaranteed by the insurer or for which the individual
has assumed the risk, such as a variable contract sold by prospectus;
any policy of reinsurance unless an assumption certificate was issued;
interest rate yields that exceed an average rate; and
any portion of a contract that provides dividends or experience rating credits.
LIMITS ON AMOUNT OF COVERAGE
The Act limits the Association to pay benefits as follows:
Life and Annuity Benefits
80% of what the life insurance company would owe under a life policy or annuity contract up to
$100,000 in cash surrender values;
$100,000 in present value of annuities; or
$250,000 in life insurance death benefits.
A maximum of $250,000 for any one insured life no matter how many policies and contracts there
were with the same company, even if the policies provided different types of coverages.
Health Benefits
A maximum of $200,000 of the contractual obligations that the health insurance company would owe
were it not insolvent. The maximum may increase or decrease annually based upon changes in the
health care cost component of the consumer price index.
PREMIUM SURCHARGE
Member insurers are required to recoup assessments paid to the Association by way of a surcharge on
premiums charged for health insurance policies to which the act applies.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 105
LIFE INSURANCE COMPANY OF NORTH AMERICA
1601 CHESTNUT STREET GROUP POLICY
PHILADELPHIA, PA 19192-2235
(800) 732-1603 TDD (800) 552-5744
A STOCK INSURANCE COMPANY
POLICYHOLDER:
SUBSCRIBER:
POLICY NUMBER:
POLICY EFFECTIVE DATE:
POLICY ANNIVERSARY DATE:
TRUSTEE OF THE GROUP INSURANCE
TRUST FOR EMPLOYERS IN THE PUBLIC
ADMINISTRATION INDUSTRY
City of Palo Alto
LK-961943
January 1
January 1
This Policy describes the terms and conditions of coverage. It is issued in Delaware and shall be
governed by its laws. The Policy goes into effect on the Policy Effective Date, 12:01 a.m. at the
Policyholder's address.
In return for the required premium, the Insurance Company and the Policyholder have agreed to all the
terms of this Policy.
Deborah Young, Corporate Secretary Karen S. Rohan, President
TL-004700 O/O v-2
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 106
TABLE OF CONTENTS
SCHEDULE OF BENEFITS........................................................................................................................1
SCHEDULE OF BENEFITS FOR CLASS 1...............................................................................................2
SCHEDULE OF BENEFITS FOR CLASS 2...............................................................................................5
SCHEDULE OF BENEFITS FOR CLASS 3...............................................................................................8
ELIGIBILITY FOR INSURANCE ............................................................................................................11
EFFECTIVE DATE OF INSURANCE......................................................................................................11
TERMINATION OF INSURANCE...........................................................................................................11
CONTINUATION OF INSURANCE........................................................................................................12
DESCRIPTION OF BENEFITS.................................................................................................................13
EXCLUSIONS............................................................................................................................................18
CLAIM PROVISIONS...............................................................................................................................18
ADMINISTRATIVE PROVISIONS..........................................................................................................20
GENERAL PROVISIONS .........................................................................................................................21
DEFINITIONS............................................................................................................................................22
DOMESTIC PARTNER RIDER................................................................................................................25
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 107
1
SCHEDULE OF BENEFITS
Premium Due Date: The last day of each month
Classes of Eligible Employees
On the pages following the definition of eligible employees there is a Schedule of Benefits for each Class
of Eligible Employees listed below. For an explanation of these benefits, please see the Description of
Benefits provision.
If an Employee is eligible under one Class of Eligible Employees and later becomes eligible under a
different Class of Eligible Employees, changes in his or her insurance due to the class change will be
effective on the first of the month following the change in class.
Class 1 All active, Full-time Service Employees International Union Employees/Members of the
Employer regularly working a minimum of 20 hours per week.
Class 2 All active, Full-time Employees of the Employer regularly working a minimum of 20
hours per week who are classified as Management, Confidential and Council Officer.
Class 3 All active, Full-time Employees of the Employer as defined under the prior carrier policy,
number 643835, and on file with the Insurance Company, regularly working a minimum
of 20 hours per week. (Closed Class)
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 108
2
SCHEDULE OF BENEFITS FOR CLASS 1
Eligibility Waiting Period
For Employees hired on or before the Policy Effective Date: No Waiting Period
For Employees hired after the Policy Effective Date: No Waiting Period
Definition of Disability/Disabled
The Employee is considered Disabled if, solely because of Injury or Sickness, he or she is:
1. unable to perform the material duties of his or her Regular Occupation; and
2. unable to earn 80% or more of his or her Indexed Earnings from working in his or her Regular
Occupation.
After Disability Benefits have been payable for 24 months, the Employee is considered Disabled if, solely
due to Injury or Sickness, he or she is:
1. unable to perform the material duties of any occupation for which he or she is, or may reasonably
become, qualified based on education, training or experience; and
2. unable to earn 60% or more of his or her Indexed Earnings.
The Insurance Company will require proof of earnings and continued Disability.
Definition of Covered Earnings
Covered Earnings means an Employee's wage or salary as reported by the Employer for work performed
for the Employer as in effect just prior to the date Disability begins. It includes earnings received from
commissions but not bonuses, overtime pay and other extra compensation. Covered Earnings are
determined initially on the date an Employee applies for coverage. A change in the amount of Covered
Earnings is effective on the date of the change, if the Employer gives us written notice of the change and
the required premium is paid.
Commissions will be averaged for the 12 months just prior to the date Disability begins, or the months
employed, if less than 12 months.
Any increase in an Employee's Covered Earnings will not be effective during a period of continuous
Disability.
Elimination Period 60 days
Gross Disability Benefit
Option 1 The lesser of 66.67% of an Employee's monthly Covered
Earnings rounded to the nearest dollar or the Maximum
Disability Benefit.
Option 2 The lesser of 60% of an Employee's monthly Covered Earnings
rounded to the nearest dollar or the Maximum Disability Benefit.
Maximum Disability Benefit
Option 1 $4,000 per month
Option 2 $1,800 per month
Minimum Disability Benefit $100 per month
Disability Benefit Calculation
The Disability Benefit payable to the Employee is figured using the Gross Disability Benefit, Other
Income Benefits and the Return to Work Incentive. Monthly Benefits are based on a 30-day month. The
Disability Benefit will be prorated if payable for any period less than a month.
During any month the Employee has no Disability Earnings, the monthly benefit payable is the Gross
Disability Benefit less Other Income Benefits. During any month the Employee has Disability Earnings,
benefits are determined under the Return to Work Incentive. Benefits will not be less than the minimum
benefit shown in the Schedule of Benefits except as provided under the section Minimum Benefit.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 109
3
"Other Income Benefits" means any benefits listed in the Other Income Benefits provision that an
Employee receives on his or her own behalf or for dependents, or which the Employee's dependents
receive because of the Employee's entitlement to Other Income Benefits.
Return to Work Incentive
During any month the Employee has Disability Earnings, his or her benefits will be calculated as
follows.
The Employee's monthly benefit payable will be calculated as follows during the first 24 months
disability benefits are payable and the Employee has Disability Earnings:
1.Add the Employee's Gross Disability Benefit and Disability Earnings.
2.Compare the sum from 1. to the Employee's Indexed Earnings.
3.If the sum from 1. exceeds 100% of the Employee's Indexed Earnings, then subtract the
Indexed Earnings from the sum in 1.
4.The Employee's Gross Disability Benefit will be reduced by the difference from 3., as
well as by Other Income Benefits.
5.If the sum from 1. does not exceed 100% of the Employee's Indexed Earnings, the
Employee's Gross Disability Benefit will be reduced by Other Income Benefits.
After disability benefits are payable for 24 months, the monthly benefit payable is the Gross
Disability Benefit reduced by Other Income Benefits and 50% of Disability Earnings.
No Disability Benefits will be paid, and insurance will end if the Insurance Company determines
the Employee is able to work under a modified work arrangement and he or she refuses to do so
without Good Cause.
Additional Benefits
Survivor Benefit
Benefit Waiting Period: After 3 Monthly Benefits are payable.
Amount of Benefit: 100% of the sum of the last full Disability Benefit plus the
amount of any Disability Earnings by which the benefit had been
reduced for that month.
Maximum Benefit Period A single lump sum payment equal to 3 monthly Survivor
Benefits.
Maximum Benefit Period
The later of the Employee’s SSNRA* or the Maximum Benefit Period listed below.
Age When Disability Begins Maximum Benefit Period
Age 62 or under The Employee's 65th birthday or the date the 42nd Monthly
Benefit is payable, if later.
Age 63 The date the 36th Monthly Benefit is payable.
Age 64 The date the 30th Monthly Benefit is payable.
Age 65 The date the 24th Monthly Benefit is payable.
Age 66 The date the 21st Monthly Benefit is payable.
Age 67 The date the 18th Monthly Benefit is payable.
Age 68 The date the 15th Monthly Benefit is payable.
Age 69 or older The date the 12th Monthly Benefit is payable.
*SSNRA means the Social Security Normal Retirement Age in effect under the Social Security Act on the
Policy Effective Date.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 110
4
Initial Premium Rates – Option 1
$1.23 per $100 of Covered Payroll
Covered Payroll for an Employee will mean his or her Covered Earnings for the insurance month prior to
the date the determination is made. However, an Employee's Covered Payroll will not include any part of
his or her monthly Covered Earnings which exceed $6,000.
Initial Premium Rates – Option 2
$.575 per $100 of Covered Payroll
Covered Payroll for an Employee will mean his or her Covered Earnings for the insurance month prior to
the date the determination is made. However, an Employee's Covered Payroll will not include any part of
his or her monthly Covered Earnings which exceed $3,000.
TL-004774
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 111
5
SCHEDULE OF BENEFITS FOR CLASS 2
Eligibility Waiting Period
For Employees hired on or before the Policy Effective Date: No Waiting Period
For Employees hired after the Policy Effective Date: No Waiting Period
Definition of Disability/Disabled
The Employee is considered Disabled if, solely because of Injury or Sickness, he or she is:
1. unable to perform the material duties of his or her Regular Occupation; and
2. unable to earn 80% or more of his or her Indexed Earnings from working in his or her Regular
Occupation.
After Disability Benefits have been payable for 24 months, the Employee is considered Disabled if, solely
due to Injury or Sickness, he or she is:
1. unable to perform the material duties of any occupation for which he or she is, or may reasonably
become, qualified based on education, training or experience; and
2. unable to earn 60% or more of his or her Indexed Earnings.
The Insurance Company will require proof of earnings and continued Disability.
Definition of Covered Earnings
Covered Earnings means an Employee's wage or salary as reported by the Employer for work performed
for the Employer as in effect just prior to the date Disability begins. It includes earnings received from
commissions but not bonuses, overtime pay and other extra compensation. Covered Earnings are
determined initially on the date an Employee applies for coverage. A change in the amount of Covered
Earnings is effective on the date of the change, if the Employer gives us written notice of the change and
the required premium is paid.
Commissions will be averaged for the 12 months just prior to the date Disability begins, or the months
employed, if less than 12 months.
Any increase in an Employee's Covered Earnings will not be effective during a period of continuous
Disability.
Elimination Period 60 days
Gross Disability Benefit The lesser of 66.67% of an Employee's monthly Covered
Earnings rounded to the nearest dollar or the Maximum
Disability Benefit.
Maximum Disability Benefit $10,000 per month
Minimum Disability Benefit $100 per month
Disability Benefit Calculation
The Disability Benefit payable to the Employee is figured using the Gross Disability Benefit, Other
Income Benefits and the Return to Work Incentive. Monthly Benefits are based on a 30-day month. The
Disability Benefit will be prorated if payable for any period less than a month.
During any month the Employee has no Disability Earnings, the monthly benefit payable is the Gross
Disability Benefit less Other Income Benefits. During any month the Employee has Disability Earnings,
benefits are determined under the Return to Work Incentive. Benefits will not be less than the minimum
benefit shown in the Schedule of Benefits except as provided under the section Minimum Benefit.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 112
6
"Other Income Benefits" means any benefits listed in the Other Income Benefits provision that an
Employee receives on his or her own behalf or for dependents, or which the Employee's dependents
receive because of the Employee's entitlement to Other Income Benefits.
Return to Work Incentive
During any month the Employee has Disability Earnings, his or her benefits will be calculated as
follows.
The Employee's monthly benefit payable will be calculated as follows during the first 24 months
disability benefits are payable and the Employee has Disability Earnings:
1. Add the Employee's Gross Disability Benefit and Disability Earnings.
2. Compare the sum from 1. to the Employee's Indexed Earnings.
3. If the sum from 1. exceeds 100% of the Employee's Indexed Earnings, then subtract the
Indexed Earnings from the sum in 1.
4. The Employee's Gross Disability Benefit will be reduced by the difference from 3., as
well as by Other Income Benefits.
5. If the sum from 1. does not exceed 100% of the Employee's Indexed Earnings, the
Employee's Gross Disability Benefit will be reduced by Other Income Benefits.
After disability benefits are payable for 24 months, the monthly benefit payable is the Gross
Disability Benefit reduced by Other Income Benefits and 50% of Disability Earnings.
No Disability Benefits will be paid, and insurance will end if the Insurance Company determines
the Employee is able to work under a modified work arrangement and he or she refuses to do so
without Good Cause.
Additional Benefits
Survivor Benefit
Benefit Waiting Period: After 3 Monthly Benefits are payable.
Amount of Benefit: 100% of the sum of the last full Disability Benefit plus the
amount of any Disability Earnings by which the benefit had been
reduced for that month.
Maximum Benefit Period A single lump sum payment equal to 3 monthly Survivor
Benefits.
Maximum Benefit Period
The later of the Employee’s SSNRA* or the Maximum Benefit Period listed below.
Age When Disability Begins Maximum Benefit Period
Age 62 or under The Employee's 65th birthday or the date the 42nd Monthly
Benefit is payable, if later.
Age 63 The date the 36th Monthly Benefit is payable.
Age 64 The date the 30th Monthly Benefit is payable.
Age 65 The date the 24th Monthly Benefit is payable.
Age 66 The date the 21st Monthly Benefit is payable.
Age 67 The date the 18th Monthly Benefit is payable.
Age 68 The date the 15th Monthly Benefit is payable.
Age 69 or older The date the 12th Monthly Benefit is payable.
*SSNRA means the Social Security Normal Retirement Age in effect under the Social Security Act on the
Policy Effective Date.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 113
7
Initial Premium Rates
$.62 per $100 of Covered Payroll
Covered Payroll for an Employee will mean his or her Covered Earnings for the insurance month prior to
the date the determination is made. However, an Employee's Covered Payroll will not include any part of
his or her monthly Covered Earnings which exceed $15,000.
TL-004774
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 114
8
SCHEDULE OF BENEFITS FOR CLASS 3
Eligibility Waiting Period
For Employees hired on or before the Policy Effective Date: No Waiting Period
For Employees hired after the Policy Effective Date: No Waiting Period
Definition of Disability/Disabled
The Employee is considered Disabled if, solely because of Injury or Sickness, he or she is:
1. unable to perform the material duties of his or her Regular Occupation; and
2. unable to earn 80% or more of his or her Indexed Earnings from working in his or her Regular
Occupation.
After Disability Benefits have been payable for 24 months, the Employee is considered Disabled if, solely
due to Injury or Sickness, he or she is:
1. unable to perform the material duties of any occupation for which he or she is, or may reasonably
become, qualified based on education, training or experience; and
2. unable to earn 60% or more of his or her Indexed Earnings.
The Insurance Company will require proof of earnings and continued Disability.
Definition of Covered Earnings
Covered Earnings means an Employee's wage or salary as reported by the Employer for work performed
for the Employer as in effect just prior to the date Disability begins. It includes earnings received from
commissions but not bonuses, overtime pay and other extra compensation. Covered Earnings are
determined initially on the date an Employee applies for coverage. A change in the amount of Covered
Earnings is effective on the date of the change, if the Employer gives us written notice of the change and
the required premium is paid.
Commissions will be averaged for the 12 months just prior to the date Disability begins, or the months
employed, if less than 12 months.
Any increase in an Employee's Covered Earnings will not be effective during a period of continuous
Disability.
Elimination Period 60 days
Gross Disability Benefit The lesser of 66.67% of an Employee's monthly Covered
Earnings rounded to the nearest dollar or the Maximum
Disability Benefit.
Maximum Disability Benefit $10,000 per month
Minimum Disability Benefit $100 per month
Disability Benefit Calculation
The Disability Benefit payable to the Employee is figured using the Gross Disability Benefit, Other
Income Benefits and the Return to Work Incentive. Monthly Benefits are based on a 30-day month. The
Disability Benefit will be prorated if payable for any period less than a month.
During any month the Employee has no Disability Earnings, the monthly benefit payable is the Gross
Disability Benefit less Other Income Benefits. During any month the Employee has Disability Earnings,
benefits are determined under the Return to Work Incentive. Benefits will not be less than the minimum
benefit shown in the Schedule of Benefits except as provided under the section Minimum Benefit.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 115
9
"Other Income Benefits" means any benefits listed in the Other Income Benefits provision that an
Employee receives on his or her own behalf or for dependents, or which the Employee's dependents
receive because of the Employee's entitlement to Other Income Benefits.
Return to Work Incentive
During any month the Employee has Disability Earnings, his or her benefits will be calculated as
follows.
The Employee's monthly benefit payable will be calculated as follows during the first 24 months
disability benefits are payable and the Employee has Disability Earnings:
1. Add the Employee's Gross Disability Benefit and Disability Earnings.
2. Compare the sum from 1. to the Employee's Indexed Earnings.
3. If the sum from 1. exceeds 100% of the Employee's Indexed Earnings, then subtract the
Indexed Earnings from the sum in 1.
4. The Employee's Gross Disability Benefit will be reduced by the difference from 3., as
well as by Other Income Benefits.
5. If the sum from 1. does not exceed 100% of the Employee's Indexed Earnings, the
Employee's Gross Disability Benefit will be reduced by Other Income Benefits.
After disability benefits are payable for 24 months, the monthly benefit payable is the Gross
Disability Benefit reduced by Other Income Benefits and 50% of Disability Earnings.
No Disability Benefits will be paid, and insurance will end if the Insurance Company determines
the Employee is able to work under a modified work arrangement and he or she refuses to do so
without Good Cause.
Additional Benefits
Survivor Benefit
Benefit Waiting Period: After 3 Monthly Benefits are payable.
Amount of Benefit: 100% of the sum of the last full Disability Benefit plus the
amount of any Disability Earnings by which the benefit had been
reduced for that month.
Maximum Benefit Period A single lump sum payment equal to 3 monthly Survivor
Benefits.
Maximum Benefit Period
The later of the Employee’s SSNRA* or the Maximum Benefit Period listed below.
Age When Disability Begins Maximum Benefit Period
Age 62 or under The Employee's 65th birthday or the date the 42nd Monthly
Benefit is payable, if later.
Age 63 The date the 36th Monthly Benefit is payable.
Age 64 The date the 30th Monthly Benefit is payable.
Age 65 The date the 24th Monthly Benefit is payable.
Age 66 The date the 21st Monthly Benefit is payable.
Age 67 The date the 18th Monthly Benefit is payable.
Age 68 The date the 15th Monthly Benefit is payable.
Age 69 or older The date the 12th Monthly Benefit is payable.
*SSNRA means the Social Security Normal Retirement Age in effect under the Social Security Act on the
Policy Effective Date.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 116
10
Initial Premium Rates
$.62 per $100 of Covered Payroll
Covered Payroll for an Employee will mean his or her Covered Earnings for the insurance month prior to
the date the determination is made. However, an Employee's Covered Payroll will not include any part of
his or her monthly Covered Earnings which exceed $15,000.
TL-004774
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 117
11
ELIGIBILITY FOR INSURANCE
An Employee in one of the Classes of Eligible Employees shown in the Schedule of Benefits is eligible to
be insured on the Policy Effective Date, or the day after he or she completes the Eligibility Waiting
Period, if later. The Eligibility Waiting Period is the period of time the Employee must be in Active
Service to be eligible for coverage. It will be extended by the number of days the Employee is not in
Active Service.
Except as noted in the Reinstatement Provision, if an Employee terminates coverage and later wishes to
reapply, or if a former Employee is rehired, a new Eligibility Waiting Period must be satisfied. An
Employee is not required to satisfy a new Eligibility Waiting Period if insurance ends because he or she is
no longer in a Class of Eligible Employees, but continues to be employed and within one year becomes a
member of an eligible class.
TL-004710
EFFECTIVE DATE OF INSURANCE
An Employee will be insured on the date he or she becomes eligible, if the Employee is not required to
contribute to the cost of this insurance.
An Employee who is required to contribute to the cost of this insurance may elect to be insured only by
authorizing payroll deduction in a form approved by the Employer and the Insurance Company. The
effective date of this insurance depends on the date coverage is elected.
Insurance for an Employee who applies for insurance within 31 days after he or she becomes eligible is
effective on the latest of the following dates.
1. The Policy Effective Date.
2. The date payroll deduction is authorized.
3. The date the Insurance Company receives the Employee's completed enrollment form.
If an Employee's enrollment form is received more than 31 days after he or she is eligible for this
insurance, the Insurability Requirement must be satisfied before this insurance is effective. If approved,
this insurance is effective on the date the Insurance Company agrees in writing to insure the Employee.
If an Employee is not in Active Service on the date insurance would otherwise be effective, it will be
effective on the date he or she returns to any occupation for the Employer on a Full-time basis.
TL-004712
TERMINATION OF INSURANCE
An Employee's coverage will end on the earliest of the following dates:
1. the date the Employee is eligible for coverage under a plan intended to replace this coverage;
2. the date the Policy is terminated;
3. the date the Employee is no longer in an eligible class;
4. the day after the end of the period for which premiums are paid;
5. the date the Employee is no longer in Active Service;
6. the date benefits end for failure to comply with the terms and conditions of the Policy.
Disability Benefits will be payable to an Employee who is entitled to receive Disability Benefits when the
Policy terminates, if he or she remains disabled and meets the requirements of the Policy. Any period of
Disability, regardless of cause, that begins when the Employee is eligible under another group disability
coverage provided by any employer, will not be covered.
TL-007505.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 118
12
CONTINUATION OF INSURANCE
This Continuation of Insurance provision modifies the Termination of Insurance provision to allow
insurance to continue under certain circumstances if the Insured Employee is no longer in Active Service.
Insurance that is continued under this provision is subject to all other terms of the Termination of
Insurance provisions.
Disability Insurance continues if an Employee's Active Service ends due to a Disability for which benefits
under the Policy are or may become payable. Premiums for the Employee will be waived while
Disability Benefits are payable. If the Employee does not return to Active Service, this insurance ends
when the Disability ends or when benefits are no longer payable, whichever occurs first.
If an Employee’s Active Service ends due to personal or family medical leave approved timely by the
Employer, insurance will continue for an Employee for up to 12 weeks, if the required premium is paid
when due.
If an Employee’s Active Service ends due to any other leave of absence approved in writing by the
Employer prior to the date the Employee ceases work insurance will continue for an Employee until the
end of the month in which the leave begins if the required premium is paid. An approved leave of
absence does not include termination of employment.
If an Employee’s Active Service ends due to a layoff, insurance will continue for an Employee until the
end of the month in which the leave begins if the required premium is paid.
If an Employee’s Active Service ends due to any other excused short term absence from work that is
reported to the Employer timely in accordance with the Employer’s reporting requirements for such short
term absence, insurance for an Employee will continue until the earlier of:
a. the date the Employee’s employment relationship with the Employer terminates;
b. the date premiums are not paid when due;
c. the end of the 30 day period that begins with the first day of such excused absence;
d. the end of the period for which such short term absence is excused by the Employer.
Notwithstanding any other provision of this policy, if an Employee’s Active Service ends due to
termination of employment, or any other termination of the employment relationship, insurance will
terminate and Continuation of Insurance under this provision will not apply.
If an Employee’s insurance is continued pursuant to this Continuation of Insurance provision, and he or
she becomes Disabled during such period of continuation, Disability Benefits will not begin until the later
of the date the Elimination Period is satisfied or the date he or she is scheduled to return to Active
Service.
TL-004716
TAKEOVER PROVISION
This provision applies only to Employees eligible under this Policy who were covered for long term
disability coverage on the day prior to the effective date of this Policy under the Prior Plan provided by
the Policyholder or by an entity that has been acquired by the Policyholder.
A. This section A applies to Employees who are not in Active Service on the day prior to the effective
date of this Policy due to a reason for which the Prior Plan and this Policy both provide for
continuation of insurance. If required premium is paid when due, the Insurance Company will insure
an Employee to which this section applies against a disability that occurs after the effective date of
this Policy for the affected employee group. This coverage will be provided until the earlier of the
date: (a) the employee returns to Active Service, (b) continuation of insurance under the Prior Plan
would end but for termination of that plan; or (c) the date continuation of insurance under this Policy
would end if computed from the first day the employee was not in Active Service. The Policy will
provide this coverage as follows:
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 119
13
1. If benefits for a disability are covered under the Prior Plan, no benefits are payable under this
Plan.
2. If the disability is not a covered disability under the Prior Plan solely because the plan terminated,
benefits payable under this Policy for that disability will be the lesser of: (a) the disability benefits
that would have been payable under the Prior Plan; and (b) those provided by this Policy. Credit
will be given for partial completion under the Prior Plan of Elimination Periods and partial
satisfaction of pre-existing condition limitations.
B. The Elimination Period under this Policy will be waived for a Disability which begins while the
Employee is insured under this Policy if all of the following conditions are met:
1. The Disability results from the same or related causes as a Disability for which monthly benefits
were payable under the Prior Plan;
2. Benefits are not payable for the Disability under the Prior Plan solely because it is not in effect;
3. An Elimination Period would not apply to the Disability if the Prior Plan had not ended;
4. The Disability begins within 6 months of the Employee’s return to Active Service and the
Employee’s insurance under this Policy is continuous from this Policy’s Effective Date.
C. Except for any amount of benefit in excess of a Prior Plan's benefits, the Pre-existing Condition
Limitation will not apply to an Employee covered under a Prior Plan who satisfied the pre-existing
condition limitation, if any, under that plan. If an Employee, covered under a Prior Plan, did not fully
satisfy the pre-existing condition limitation of that plan, credit will be given for any time that was
satisfied under the Prior Plan's pre-existing condition limitation.
Benefits will be determined based on the lesser of: (1) the amount of the gross disability benefit under
the Prior Plan and any applicable maximums; and (2) those provided by this Policy.
If benefits are payable under the Prior Plan for the Disability, no benefits are payable under this
Policy.
TL-005108
DESCRIPTION OF BENEFITS
The following provisions explain the benefits available under the Policy. Please see the Schedule of
Benefits for the applicability of these benefits to each class of Insureds.
Disability Benefits
The Insurance Company will pay Disability Benefits if an Employee becomes Disabled while covered
under this Policy. The Employee must satisfy the Elimination Period, be under the Appropriate Care of a
Physician, and meet all the other terms and conditions of the Policy. He or she must provide the
Insurance Company, at his or her own expense, satisfactory proof of Disability before benefits will be
paid. The Disability Benefit is shown in the Schedule of Benefits.
The Insurance Company will require continued proof of the Employee’s Disability for benefits to
continue.
Elimination Period
The Elimination Period is the period of time an Employee must be continuously Disabled before
Disability Benefits are payable. The Elimination Period is shown in the Schedule of Benefits.
A period of Disability is not continuous if separate periods of Disability result from unrelated causes.
Disability Benefit Calculation
The Disability Benefit Calculation is shown in the Schedule of Benefits. Monthly Disability Benefits are
based on a 30 day period. They will be prorated if payable for any period less than a month. If an
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 120
14
Employee is working while Disabled, the Disability Benefit Calculation will be the Return to Work
Incentive.
Return to Work Incentive
The Return to Work Incentive is shown in the Schedule of Benefits. An Employee may work for wage or
profit while Disabled. In any month in which the Employee works and a Disability Benefit is payable,
the Return to Work Incentive applies.
The Insurance Company will, from time to time, review the Employee's status and will require
satisfactory proof of earnings and continued Disability.
Minimum Benefit
The Insurance Company will pay the Minimum Benefit shown in the Schedule of Benefits despite any
reductions made for Other Income Benefits. The Minimum Benefit will not apply if benefits are being
withheld to recover an overpayment of benefits.
Other Income Benefits
An Employee for whom Disability Benefits are payable under this Policy may be eligible for benefits
from Other Income Benefits. If so, the Insurance Company may reduce the Disability Benefits by the
amount of such Other Income Benefits.
Other Income Benefits include:
1. any amounts received (or assumed to be received*) by the Employee or his or her dependents
under:
- the Canada and Quebec Pension Plans;
- the Railroad Retirement Act;
- any local, state, provincial or federal government disability or retirement plan or law
payable for Injury or Sickness provided as a result of employment with the Employer;
- any sick leave or salary continuation plan of the Employer;
- any work loss provision in mandatory "No-Fault" auto insurance.
2. any Social Security disability or retirement benefits the Employee or any third party receives (or
is assumed to receive*) on his or her own behalf or for his or her dependents; or which his or her
dependents receive (or are assumed to receive*) because of his or her entitlement to such benefits.
3. any Retirement Plan benefits funded by the Employer. "Retirement Plan" means any defined
benefit or defined contribution plan sponsored or funded by the Employer. It does not include an
individual deferred compensation agreement; a profit sharing or any other retirement or savings
plan maintained in addition to a defined benefit or other defined contribution pension plan, or any
employee savings plan including a thrift, stock option or stock bonus plan, individual retirement
account or 40l(k) plan.
4. any proceeds payable under any franchise or group insurance or similar plan. If other insurance
applies to the same claim for Disability, and contains the same or similar provision for reduction
because of other insurance, the Insurance Company will pay for its pro rata share of the total
claim. "Pro rata share" means the proportion of the total benefit that the amount payable under
one policy, without other insurance, bears to the total benefits under all such policies.
5. any amounts received (or assumed to be received*) by the Employee or his or her dependents
under any workers' compensation, occupational disease, unemployment compensation law or
similar state or federal law payable for Injury or Sickness arising out of work with the Employer,
including all permanent and temporary disability benefits. This includes any damages,
compromises or settlement paid in place of such benefits, whether or not liability is admitted.
6. any amounts paid because of loss of earnings or earning capacity through settlement, judgment,
arbitration or otherwise, where a third party may be liable, regardless of whether liability is
determined.
Dependents include any person who receives (or is assumed to receive*) benefits under any applicable
law because of an Employee’s entitlement to benefits.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 121
15
*See the Assumed Receipt of Benefits provision.
Increases in Other Income Benefits
Any increase in Other Income Benefits during a period of Disability due to a cost of living adjustment
will not be considered in calculating the Employee’s Disability Benefits after the first reduction is made
for any Other Income Benefits. This section does not apply to any cost of living adjustment for Disability
Earnings.
Lump Sum Payments
Other Income Benefits or earnings paid in a lump sum will be prorated over the period for which the sum
is given. If no time is stated, the lump sum will be prorated over five years.
If no specific allocation of a lump sum payment is made, then the total payment will be an Other Income
Benefit.
Assumed Receipt of Benefits
The Insurance Company will assume the Employee (and his or her dependents, if applicable) are
receiving benefits for which they are eligible from Other Income Benefits. The Insurance Company will
reduce the Employee’s Disability Benefits by the amount from Other Income Benefits it estimates are
payable to the Employee and his or her dependents.
The Insurance Company will waive Assumed Receipt of Benefits, except for Disability Earnings for work
the Employee performs while Disability Benefits are payable, if the Employee:
1. provides satisfactory proof of application for Other Income Benefits;
2. signs a Reimbursement Agreement;
3. provides satisfactory proof that all appeals for Other Income Benefits have been made unless the
Insurance Company determines that further appeals are not likely to succeed; and
4. submits satisfactory proof that Other Income Benefits were denied.
The Insurance Company will not assume receipt of any pension or retirement benefits that are actuarially
reduced according to applicable law, until the Employee actually receives them.
Social Security Assistance
The Insurance Company may help the Employee in applying for Social Security Disability Income
(SSDI) Benefits, and may require the Employee to file an appeal if it believes a reversal of a prior
decision is possible.
The Insurance Company will reduce Disability Benefits by the amount it estimates the Employee will
receive, if the Employee refuses to cooperate with or participate in the Social Security Assistance
Program.
Recovery of Overpayment
The Insurance Company has the right to recover any benefits it has overpaid. The Insurance Company
may use any or all of the following to recover an overpayment:
1. request a lump sum payment of the overpaid amount;
2. reduce any amounts payable under this Policy; and/or
3. take any appropriate collection activity available to it.
The Minimum Benefit amount will not apply when Disability Benefits are reduced in order to recover any
overpayment.
If an overpayment is due when the Employee dies, any benefits payable under the Policy will be reduced
to recover the overpayment.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 122
16
Successive Periods of Disability
A separate period of Disability will be considered continuous:
1. if it results from the same or related causes as a prior Disability for which benefits were payable;
and
2. if, after receiving Disability Benefits, the Employee returns to work in his or her Regular
Occupation for less than 6 consecutive months; and
3. if the Employee earns less than the percentage of Indexed Earnings that would still qualify him or
her to meet the definition of Disability/Disabled during at least one month.
Any later period of Disability, regardless of cause, that begins when the Employee is eligible for coverage
under another group disability plan provided by any employer will not be considered a continuous period
of Disability. For any separate period of disability which is not considered continuous, the Employee
must satisfy a new Elimination Period.
LIMITATIONS
Limited Benefit Periods for Mental or Nervous Disorders
The Insurance Company will pay Disability Benefits on a limited basis during an Employee's lifetime for
a Disability caused by, or contributed to by, any one or more of the following conditions. Once 24
monthly Disability Benefits have been paid, no further benefits will be payable for any of the following
conditions.
1) Anxiety disorders
2) Delusional (paranoid) disorders
3) Depressive disorders
4) Eating disorders
5) Mental illness
6) Somatoform disorders (psychosomatic illness)
If, before reaching his or her lifetime maximum benefit, an Employee is confined in a hospital for more
than 14 consecutive days, that period of confinement will not count against his or her lifetime limit. The
confinement must be for the Appropriate Care of any of the conditions listed above.
Limited Benefit Periods for Alcoholism and Drug Addiction or Abuse
The Insurance Company will pay Disability Benefits on a limited basis during an Employee's lifetime for
a Disability caused by, or contributed to by, any one or more of the following conditions. Once 24
monthly Disability Benefits have been paid, no further benefits will be payable for any of the following
conditions.
1) Alcoholism
2) Drug addiction or abuse
If, before reaching his or her lifetime maximum benefit, an Employee is confined in a hospital for more
than 14 consecutive days, that period of confinement will not count against his or her lifetime limit. The
confinement must be for the Appropriate Care of any of the conditions listed above.
Pre-Existing Condition Limitation
The Insurance Company will not pay benefits for any period of Disability caused or contributed to by, or
resulting from, a Pre-existing Condition. A "Pre-existing Condition" means any Injury or Sickness for
which the Employee incurred expenses, received medical treatment, care or services including diagnostic
measures, took prescribed drugs or medicines, or for which a reasonable person would have consulted a
Physician within 3 months before his or her most recent effective date of insurance.
The Pre-existing Condition Limitation will apply to any added benefits or increases in benefits. This
limitation will not apply to a period of Disability that begins after an Employee is covered for at least 12
months after his or her most recent effective date of insurance, or the effective date of any added or
increased benefits.
TL-007500.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 123
17
ADDITIONAL BENEFITS
Rehabilitation During a Period of Disability
If the Insurance Company determines that a Disabled Employee is a suitable candidate for rehabilitation,
the Insurance Company may require the Employee to participate in a Rehabilitation Plan and assessment
at our expense. The Insurance Company has the sole discretion to approve the Employee's participation
in a Rehabilitation Plan and to approve a program as a Rehabilitation Plan. The Insurance Company will
work with the Employee, the Employer and the Employee's Physician and others, as appropriate, to
perform the assessment, develop a Rehabilitation Plan, and discuss return to work opportunities.
The Rehabilitation Plan may, at the Insurance Company's discretion, allow for payment of the Employee's
medical expense, education expense, moving expense, accommodation expense or family care expense
while he or she participates in the program.
If an Employee fails to fully cooperate in all required phases of the Rehabilitation Plan and assessment
without Good Cause, no Disability Benefits will be paid, and insurance will end.
TL-007501.00
Survivor Benefit
The Insurance Company will pay a Survivor Benefit if an Employee dies while Monthly Benefits are
payable. The Employee must have been continuously Disabled for the Survivor Benefit Waiting Period
before the first benefit is payable. These benefits will be payable for the Maximum Benefit Period for
Survivor Benefits.
Benefits will be paid to the Employee's Spouse. If there is no Spouse, benefits will be paid in equal
shares to the Employee's surviving Children. If there are no Spouse and no Children, benefits will be paid
to the Employee's estate.
"Spouse" means an Employee's lawful spouse. "Children" means an Employee's unmarried children
under age 21 who are chiefly dependent upon the Employee for support and maintenance. The term
includes a stepchild living with the Employee at the time of his or her death.
TL-005107
TERMINATION OF DISABILITY BENEFITS
Benefits will end on the earliest of the following dates:
1. the date the Employee earns from any occupation, more than the percentage of Indexed Earnings
set forth in the definition of Disability applicable to him or her at that time;
2. the date the Insurance Company determines he or she is not Disabled;
3. the end of the Maximum Benefit Period;
4. the date the Employee dies;
5. the date the Employee refuses, without Good Cause, to fully cooperate in all required phases of
the Rehabilitation Plan and assessment;
6. the date the Employee is no longer receiving Appropriate Care;
7. the date the Employee fails to cooperate with the Insurance Company in the administration of the
claim. Such cooperation includes, but is not limited to, providing any information or documents
needed to determine whether benefits are payable or the actual benefit amount due.
Benefits may be resumed if the Employee begins to cooperate fully in the Rehabilitation Plan within 30
days of the date benefits terminated.
TL-007502.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 124
18
EXCLUSIONS
The Insurance Company will not pay any Disability Benefits for a Disability that results, directly or
indirectly, from:
1. suicide, attempted suicide, or self-inflicted injury while sane or insane.
2. war or any act of war, whether or not declared.
3. active participation in a riot.
4. commission of a felony.
5. the revocation, restriction or non-renewal of an Employee’s license, permit or certification
necessary to perform the duties of his or her occupation unless due solely to Injury or Sickness
otherwise covered by the Policy.
In addition, the Insurance Company will not pay Disability Benefits for any period of Disability during
which the Employee is incarcerated in a penal or corrections institution.
TL-007503.00
CLAIM PROVISIONS
Notice of Claim
Written notice, or notice by any other electronic/telephonic means authorized by the Insurance Company,
must be given to the Insurance Company within 31 days after a covered loss occurs or begins or as soon
as reasonably possible. If written notice, or notice by any other electronic/telephonic means authorized
by the Insurance Company, is not given in that time, the claim will not be invalidated or reduced if it is
shown that notice was given as soon as was reasonably possible. Notice can be given at our home office
in Philadelphia, Pennsylvania or to our agent. Notice should include the Employer's Name, the Policy
Number and the claimant's name and address.
Claim Forms
When the Insurance Company receives notice of claim, the Insurance Company will send claim forms for
filing proof of loss. If claim forms are not sent within 15 days after notice is received by the Insurance
Company, the proof requirements will be met by submitting, within the time required under the "Proof of
Loss" section, written proof, or proof by any other electronic/telephonic means authorized by the
Insurance Company, of the nature and extent of the loss.
Claimant Cooperation Provision
Failure of a claimant to cooperate with the Insurance Company in the administration of the claim may
result in termination of the claim. Such cooperation includes, but is not limited to, providing any
information or documents needed to determine whether benefits are payable or the actual benefit amount
due.
Insurance Data
The Employer is required to cooperate with the Insurance Company in the review of claims and
applications for coverage. Any information the Insurance Company provides in these areas is
confidential and may not be used or released by the Employer if not permitted by applicable privacy laws.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 125
19
Proof of Loss
Written proof of loss, or proof by any other electronic/telephonic means authorized by the Insurance
Company, must be given to the Insurance Company within 90 days after the date of the loss for which a
claim is made. If written proof of loss, or proof by any other electronic/telephonic means authorized by
the Insurance Company, is not given in that 90 day period, the claim will not be invalidated nor reduced if
it is shown that it was given as soon as was reasonably possible. In any case, written proof of loss, or
proof by any other electronic/telephonic means authorized by the Insurance Company, must be given not
more than one year after that 90 day period. If written proof of loss, or proof by any other
electronic/telephonic means authorized by the Insurance Company, is provided outside of these time
limits, the claim will be denied. These time limits will not apply while the person making the claim lacks
legal capacity.
Written proof, or proof by any other electronic/telephonic means authorized by the Insurance Company,
that the loss continues must be furnished to the Insurance Company at intervals required by us. Within 30
days of a request, written proof of continued Disability and Appropriate Care by a Physician must be
given to the Insurance Company.
Time of Payment
Disability Benefits will be paid at regular intervals of not less frequently than once a month. Any
balance, unpaid at the end of any period for which the Insurance Company is liable, will be paid at that
time.
To Whom Payable
Disability Benefits will be paid to the Employee. If any person to whom benefits are payable is a minor
or, in the opinion of the Insurance Company, is not able to give a valid receipt, such payment will be
made to his or her legal guardian. However, if no request for payment has been made by the legal
guardian, the Insurance Company may, at its option, make payment to the person or institution appearing
to have assumed custody and support.
If an Employee dies while any Disability Benefits remain unpaid, the Insurance Company may, at its
option, make direct payment to any of the following living relatives of the Employee: spouse, mother,
father, children, brothers or sisters; or to the executors or administrators of the Employee's estate. The
Insurance Company may reduce the amount payable by any indebtedness due.
Payment in the manner described above will release the Insurance Company from all liability for any
payment made.
Physical Examination and Autopsy
The Insurance Company, at its expense, will have the right to examine any person for whom a claim is
pending as often as it may reasonably require. The Insurance Company may, at its expense, require an
autopsy unless prohibited by law.
Legal Actions
No action at law or in equity may be brought to recover benefits under the Policy less than 60 days after
written proof of loss, or proof by any other electronic/telephonic means authorized by the Insurance
Company, has been furnished as required by the Policy. No such action shall be brought more than 3
years after the time satisfactory proof of loss is required to be furnished.
Time Limitations
If any time limit stated in the Policy for giving notice of claim or proof of loss, or for bringing any action
at law or in equity, is less than that permitted by the law of the state in which the Employee lives when
the Policy is issued, then the time limit provided in the Policy is extended to agree with the minimum
permitted by the law of that state.
Physician/Patient Relationship
The Insured will have the right to choose any Physician who is practicing legally. The Insurance
Company will in no way disturb the Physician/patient relationship.
TL-004724
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 126
20
ADMINISTRATIVE PROVISIONS
Premiums
The premiums for this Policy will be based on the rates currently in force, the plan and the amount of
insurance in effect.
Changes in Premium Rates
The premium rates may be changed by the Insurance Company from time to time with at least 31 days
advance written notice. No change in rates will be made until 36 months after the Policy Effective Date.
An increase in rates will not be made more often than once in a 12 month period. However, the Insurance
Company reserves the right to change the rates even during a period for which the rate is guaranteed if
any of the following events take place.
1. The terms of the Policy change.
2. A division, subsidiary, affiliated company or eligible class is added or deleted from the Policy.
3. There is a change in the factors bearing on the risk assumed.
4. Any federal or state law or regulation is amended to the extent it affects the Insurance Company's
benefit obligation.
5. The Insurance Company determines that the Employer has failed to promptly furnish any
necessary information requested by the Insurance Company, or has failed to perform any other
obligations in relation to the Policy.
If an increase or decrease in rates takes place on a date that is not a Premium Due Date, a pro rata
adjustment will apply from the date of the change to the next Premium Due Date.
Reporting Requirements
The Employer must, upon request, give the Insurance Company any information required to determine
who is insured, the amount of insurance in force and any other information needed to administer the plan
of insurance.
Payment of Premium
The first premium is due on the Policy Effective Date. After that, premiums will be due monthly unless
the Employer and the Insurance Company agree on some other method of premium payment.
If any premium is not paid when due, the plan will be canceled as of the Premium Due Date, except as
provided in the Policy Grace Period section.
Notice of Cancellation
The Employer or the Insurance Company may cancel the Policy as of any Premium Due Date by giving
31 days advance written notice. If a premium is not paid when due, the Policy will automatically be
canceled as of the Premium Due Date, except as provided in the Policy Grace Period section.
Policy Grace Period
A Policy Grace Period of 60 days will be granted for the payment of the required premiums under this
Policy. This Policy will be in force during the Policy Grace Period. The Employer is liable to the
Insurance Company for any unpaid premium for the time this Policy was in force.
Grace Period for the Insured
If the required premium is not paid on the Premium Due Date, there is a 60 day grace period after each
premium due date after the first. If the required premium is not paid during the grace period, insurance
will end on the last day for which premium was paid.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 127
21
Reinstatement of Insurance
An Employee's insurance may be reinstated if it ends because the Employee is on an unpaid leave of
absence.
An Employee's insurance may be reinstated only if reinstatement occurs within 12 weeks from the date
insurance ends due to an Employer approved unpaid leave of absence or must be returning from military
service pursuant to the Uniformed Services Employment and Reemployment Rights Act of 1994
(USERRA). For insurance to be reinstated the following conditions must be met.
1. An Employee must be in a Class of Eligible Employees.
2. The required premium must be paid.
3. A written request for reinstatement must be received by the Insurance Company within 31 days
from the date an Employee returns to Active Service.
Reinstated insurance will be effective on the date the Employee returns to Active Service. If an
Employee did not fully satisfy the Eligibility Waiting Period or the Pre-Existing Condition Limitation (if
any) before insurance ended due to an unpaid leave of absence, credit will be given for any time that was
satisfied.
TL-004720
GENERAL PROVISIONS
Entire Contract
The entire contract will be made up of the Policy, the application of the Employer, a copy of which is
attached to the Policy, and the applications, if any, of the Insureds.
Incontestability
All statements made by the Employer or by an Insured are representations not warranties. No statement
will be used to deny or reduce benefits or as a defense to a claim, unless a copy of the instrument
containing the statement has been furnished to the claimant. In the event of death or legal incapacity, the
beneficiary or representative must receive the copy.
After two years from an Insured's effective date of insurance, or from the effective date of any added or
increased benefits, no such statement will cause insurance to be contested except for fraud or eligibility
for coverage.
Misstatement of Age
If an Insured's age has been misstated, the Insurance Company will adjust all benefits to the amounts that
would have been purchased for the correct age.
Policy Changes
No change in the Policy will be valid until approved by an executive officer of the Insurance Company.
This approval must be endorsed on, or attached to, the Policy. No agent may change the Policy or waive
any of its provisions.
Workers' Compensation Insurance
The Policy is not in lieu of and does not affect any requirements for insurance under any Workers'
Compensation Insurance Law.
Certificates
A certificate of insurance will be delivered to the Employer for delivery to Insureds. Each certificate will
list the benefits, conditions and limits of the Policy. It will state to whom benefits will be paid.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 128
22
Assignment of Benefits
The Insurance Company will not be affected by the assignment of an Insured's certificate until the
original assignment or a certified copy of the assignment is filed with the Insurance Company. The
Insurance Company will not be responsible for the validity or sufficiency of an assignment. An
assignment of benefits will operate so long as the assignment remains in force provided insurance under
the Policy is in effect. This insurance may not be levied on, attached, garnisheed, or otherwise taken for a
person's debts. This prohibition does not apply where contrary to law.
Clerical Error
A person's insurance will not be affected by error or delay in keeping records of insurance under the
Policy. If such an error is found, the premium will be adjusted fairly.
Agency
The Employer and Plan Administrator are agents of the Employee for transactions relating to insurance
under the Policy. The Insurance Company is not liable for any of their acts or omissions.
TL-004726
Certain Internal Revenue Code (IRC) & Internal Revenue Service (IRS) Functions
The Insurer may agree with the Subscriber to perform certain functions required by the Internal Revenue
Code and IRS regulations. Such functions may include the preparation and filing of wage and tax
statements (Form W-2) for disability benefit payments made under this Policy. In consideration of the
payment of premiums by the Subscriber, the Insurer waives the right to transfer liability with respect to
the employer taxes imposed on the Insurer by IRS Regulation 32.1(e)(1) for monthly Disability payments
made under this Policy. Employee money may not be used to fund the Premium for the services and
payments of this section.
TL-009230.00
DEFINITIONS
Please note, certain words used in this document have specific meanings. These terms will be capitalized
throughout this document. The definition of any word, if not defined in the text where it is used, may be
found either in this Definitions section or in the Schedule of Benefits.
Active Service
An Employee is in Active Service on a day which is one of the Employer's scheduled work days if either
of the following conditions are met.
1. The Employee is performing his or her regular occupation for the Employer on a full-time basis.
He or she must be working at one of the Employer's usual places of business or at some location
to which the employer's business requires an Employee to travel.
2. The day is a scheduled holiday or vacation day and the Employee was performing his or her
regular occupation on the preceding scheduled work day.
An Employee is in Active Service on a day which is not one of the Employer's scheduled work days only
if he or she was in Active Service on the preceding scheduled work day.
Appropriate Care
Appropriate Care means the determination of an accurate and medically supported diagnosis of the
Employee’s Disability by a Physician, or a plan established by a Physician of ongoing medical treatment
and care of the Disability that conforms to generally accepted medical standards, including frequency of
treatment and care.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 129
23
Consumer Price Index (CPI-W)
The Consumer Price Index for Urban Wage Earners and Clerical Workers published by the U.S.
Department of Labor. If the index is discontinued or changed, another nationally published index that is
comparable to the CPI-W will be used.
Disability Earnings
Any wage or salary for any work performed for any employer during the Employee’s Disability,
including commissions, bonus, overtime pay or other extra compensation.
Employee
For eligibility purposes, an Employee is an employee of the Employer in one of the "Classes of Eligible
Employees." Otherwise, Employee means an employee of the Employer who is insured under the Policy.
Employer
The Employer who has subscribed to the Policyholder and for the benefit of whose Employees this policy
has been issued. The Employer, named as the Subscriber on the front of this Policy, includes any
affiliates or subsidiaries covered under the Policy. The Employer is acting as an agent of the Insured for
transactions relating to this insurance. The actions of the Employer shall not be considered the actions of
the Insurance Company.
Full-time
Full-time means the number of hours set by the Employer as a regular work day for Employees in the
Employee's eligibility class.
Good Cause
A medical reason preventing participation in the Rehabilitation Plan. Satisfactory proof of Good Cause
must be provided to the Insurance Company.
Indexed Earnings
For the first 12 months Monthly Benefits are payable, Indexed Earnings will be equal to Covered
Earnings. After 12 Monthly Benefits are payable, Indexed Earnings will be an Employee's Covered
Earnings plus an increase applied on each anniversary of the date Monthly Benefits became payable. The
amount of each increase will be the lesser of:
1. 10% of the Employee's Indexed Earnings during the preceding year of Disability; or
2. the rate of increase in the Consumer Price Index (CPI-W) during the preceding calendar year.
Injury
Any accidental loss or bodily harm which results directly and independently of all other causes from an
Accident.
Insurability Requirement
An eligible person will satisfy the Insurability Requirement for an amount of coverage on the day the
Insurance Company agrees in writing to accept him or her as insured for that amount. To determine a
person's acceptability for coverage, the Insurance Company will require evidence of good health and may
require it be provided at the Employee's expense.
Insurance Company
The Insurance Company underwriting the Policy is named on the Policy cover page.
Insured
A person who is eligible for insurance under the Policy, for whom insurance is elected, the required
premium is paid and coverage is in force under the Policy.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 130
24
Physician
Physician means a licensed doctor practicing within the scope of his or her license and rendering care and
treatment to an Insured that is appropriate for the condition and locality. The term does not include an
Employee, an Employee's spouse, the immediate family (including parents, children, siblings or spouses
of any of the foregoing, whether the relationship derives from blood or marriage), of an Employee or
spouse, or a person living in an Employee's household.
Prior Plan
The Prior Plan refers to the plan of insurance providing similar benefits sponsored by the Employer in
effect directly prior to the Policy Effective Date. A Prior Plan will include the plan of a company in
effect on the day prior to that company's addition to this Policy after the Policy Effective Date.
Regular Occupation
The occupation the Employee routinely performs at the time the Disability begins. In evaluating the
Disability, the Insurance Company will consider the duties of the occupation as it is normally performed
in the general labor market in the national economy. It is not work tasks that are performed for a specific
employer or at a specific location.
Rehabilitation Plan
A written plan designed to enable the Employee to return to work. The Rehabilitation Plan will consist of
one or more of the following phases:
1. rehabilitation, under which the Insurance Company may provide, arrange or authorize
educational, vocational or physical rehabilitation or other appropriate services;
2. work, which may include modified work and work on a part-time basis.
Sickness
Any physical or mental illness.
TL-007500.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 131
25
Life Insurance Company of North America
a stock insurance company
Rider to Group Policy No. LK-961943
Effective Date of Rider: January 1, 2009
Eligible Classes to which this Rider applies: All Classes
MODIFICATION OF GROUP DISABILITY POLICY
TO ADD DOMESTIC PARTNER AS AN ELIGIBLE SURVIVOR UNDER THE SURVIVOR
BENEFIT
The Survivor Benefit are modified in the Policy as follows:
1. All references to the term “Spouse” are replaced by "Spouse or Domestic Partner" except for the
following references:
a. The first reference to “Spouse” in the benefit text is changed to “Spouse, or Domestic Partner
if there is no Spouse,”
b. The text pertaining to the definition of “Spouse" remains unchanged.
2. The following definition of Domestic Partner is added.
“Domestic Partner” means a person who is registered as the Employee’s domestic partner with
the California Secretary of State.
Except for the above, this Rider does not change the Group Policy to which it is attached.
Life Insurance Company of North America
By:
Karen S. Rohan, President
TL-007152-1.05
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 132
26
IMPORTANT CHANGES FOR STATE REQUIREMENTS
If an Employee resides in one of the following states, the provisions of the certificate are modified for
residents of the following states. The modifications listed apply only to residents of that state.
Louisiana residents:
The percentage of Indexed Earnings, if any, that qualifies an insured to meet the definition of
Disability/Disabled may not be less than 80%.
Minnesota residents:
The Pre-existing Condition Limitation, if any, may not be longer than 24 months from the insured’s
most recent effective date of insurance.
Texas residents:
Any provision offsetting or otherwise reducing any benefit by an amount payable under an individual
or franchise policy will not apply.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 133
LIFE INSURANCE COMPANY OF NORTH AMERICA
PHILADELPHIA, PA 19192-2235
We, City of Palo Alto, whose main office address is Palo Alto, CA, hereby approve and accept the terms of
Group Policy Number LK-961943 issued by the LIFE INSURANCE COMPANY OF NORTH AMERICA
to the TRUSTEE OF THE GROUP INSURANCE TRUST FOR EMPLOYERS IN THE PUBLIC
ADMINISTRATION INDUSTRY.
This form is to be signed in duplicate. One part is to be retained by City of Palo Alto; the other part is to be
returned to the LIFE INSURANCE COMPANY OF NORTH AMERICA.
City of Palo Alto
Signature and Title: _________________________________________ Date:__________________________
(This Copy Is To Be Returned To Life Insurance Company of North America)
--------------------------------------------------------------------------------------------------------------------------------------
LIFE INSURANCE COMPANY OF NORTH AMERICA
PHILADELPHIA, PA 19192-2235
We, City of Palo Alto, whose main office address is Palo Alto, CA, hereby approve and accept the terms of
Group Policy Number LK-961943 issued by the LIFE INSURANCE COMPANY OF NORTH AMERICA
to the TRUSTEE OF THE GROUP INSURANCE TRUST FOR EMPLOYERS IN THE PUBLIC
ADMINISTRATION INDUSTRY.
This form is to be signed in duplicate. One part is to be retained by City of Palo Alto; the other part is to be
returned to the LIFE INSURANCE COMPANY OF NORTH AMERICA.
City of Palo Alto
Signature and Title: _________________________________________ Date:__________________________
(This Copy Is To Be Retained By City of Palo Alto)
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 134
Life Insurance Company of North America
1601 Chestnut Street
Philadelphia, Pennsylvania 19192 -2235
AMENDMENT
Policyholder: Trustee of the Group Insurance Trust for Employers in the Public Administration Industry
Subscriber: City of Palo Alto Policy No.: OK - 964302
This Amendment is attached to and made part of the Policy specified above. It is subject to all of the policy provisions tha t
do not conflict with its provisions.
Subscriber and We hereby agree that the Policy is amended as follows:
Effective January 1, 2022, the following rates will be in force for Classes 1, 2 and 3 for coverage under the Policy:
Premium Rate: Basic Insurance
Employee Rate: $0.015 per $1,000
Voluntary Insurance
Employee Rate: $0.02 per $1,000
No change in rates will be made until 36 months after the effective date of this Amendment. However, the Company
reserves the right to change the rates at any time during a period for w hich the rates are guaranteed if the conditions
described in the Changes in Premium Rates provision under the Administrative Provisions section of the Policy apply.
Except for the above, this Amendment does not change the Policy in any way.
Life Insurance Company of North America
William J. Smith, President
Date: August 26, 2021
Amendment No. 04ri0215
GA -00-4000.00
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 135
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall provide Insurance benefits as specified in EXHIBIT “A” Scope of
Services. Claims shall be processed in a timely manner to the reasonable satisfaction of the
CITY.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 136
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
EXHIBIT C
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed in
accordance with the terms and conditions of this Agreement based on the rate schedules within
Exhibits A-1, A-2 and A-3.
The compensation to be paid to CONSULTANT under this Agreement for all services described
in Exhibit “A” (“Services”) and reimbursable expenses shall not exceed $1,920,000.00.
CONSULTANT 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.
REIMBURSABLE EXPENSES
CITY’S sole financial obligation to CONSULTANT shall be the payment of premiums as provided
in the Policies.
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 expenses, for
such services based on the rates set forth in such proposal. 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.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 137
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
EXHIBIT D
INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE
CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW,
AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR
AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$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: CONSULTANT, AT ITS SOLE COST
AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM
OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY
CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL
INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.
II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE
AT THE FOLLOWING 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.
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 138
City of Palo Alto Professional Services
Contract No. C22183900 Rev. Dec.15, 2020
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER
THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE
INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE
INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS
POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE
CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE
OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT
OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY
WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE
FILED WITH THE CITY OF PALO ALTO
DocuSign Envelope ID: C9DE40AE-C5E8-4AD0-BF22-BA5334AA9CBA
4.b
Packet Pg. 139
City of Palo Alto (ID # 13805)
City Council Staff Report
Meeting Date: 12/6/2021
City of Palo Alto Page 1
Title: Adoption of a Resolution for the Santa Clara County Historical Heritage
Grant Program Authorizing the Application and Receipt of Grant Funds by the
City of Palo Alto for the Roth Building (300 Homer Ave) Elevator Restoration
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that Council adopt the attached resolution (Attachment A) to comply with an
application for historical heritage grant program funds from the County of Santa Clara to
rehabilitate the Roth Building elevator.
Background
The Palo Alto Museum (PAM) has been working for several years to raise funding through
various means including grants. In partnership with the City, as the owner of the facility, PAM
sought and received the award of grants from Santa Clara County. Table 1 summarizes the
grant opportunities that the City has pursued in the past, including the resolution for the Roth
Building elevator attached to this staff report.
Table 1: Summary of Roth Building Grants
Council Resolution
Date /CMR Purpose
Awarded Grant
Amount
12/17/2018;
CMR 9767
Replacement of a portion of the clay
tile roof
$102,992
4/12/2021;
CMR 12028
Preservation of the Art Frescoes $105,150
4/12/2021;
CMR 12028
Second grant to cover replacement
of clay tile roof
$200,000
Pending this CMR
13805 and award
Restoration of the Roth Building
elevator
$350,000 requested
(not awarded)
Total $758,142
5
Packet Pg. 140
City of Palo Alto Page 2
The City has continued its long history with PAM in partnership to develop the R oth Building.
The most recent staff report from November 2021 can be found here CMR 13760 which
discusses the current status of lease negotiations with PAM.
Discussion
Council approval of the proposed resolution (Attachment A) would authorize the City Manager
to execute the grant agreement and administer the grant and commit to a park use for at least
twenty years. These terms are similar to prior County historical grants received for the Roth
Building and approved by Council. The program guide for the grant can be found on the
County’s website at this link1. Grant funds will be used to restore and repair the original
elevator in the Roth Building. The elevator is a 1940s Otis traction style elevator and needs to
be repaired to meet use and accessibility requirements.
While staff has received direction from the City Council on November 15, 2021 regarding lease
negotiations with PAM (CMR 13760), staff also requires City Council adoption of the resolution
for the County of Santa Clara historical heritage grant to begin work on the rehabilitation and
draw on these grant funds. This grant, if approved by the county, would provide $350,000
towards the renovation of the elevator.
Timeline
With Council direction on November 15, 2021 staff is continuing to work with PAM on terms for
a lease and redevelopment of the Roth Building. Construction is anticipated to begin after the
Council approval of the lease in early 2022. Once costs are incurred for the grant funded
portions of the project the City can seek reimbursement via the grants.
Resource Impact
Council approval of the resolution will allow the City to enter into the grant program for the
opportunity to receive County funding of $350,000 for restoration of the elevator once the
overall Roth Building project is initiated. Grant funds awarded to date total $408,142. Should
the City be awarded grant funds for elevator rehabilitation, the revised total will be $758,142.
Stakeholder Engagement
Staff has coordinated with PAM and the County of Santa Clara staff to prepare and finalize the
grant application and resolution.
Environmental Review
The Roth Building rehabilitation project is Categorically Exempt from CEQA review pursuant to
CEQA guidelines section 15331, Historical Resource Restoration/Rehabilitation, as a project
limited to maintenance, repair, and rehabilitation in accordance with the secretary of interior
standards for historic preservation.
.
Attachments:
1 https://parks.sccgov.org/sites/g/files/exjcpb961/files/documents/FY2022-HHGP-Proc-Guide-1_0.pdf
5
Packet Pg. 141
City of Palo Alto Page 3
• Attachment5.a: Attachment A: Resolution Roth Building County Grant
Applications
5
Packet Pg. 142
Resolution No. ____
Resolution of the Council of the City of Palo Alto
Approving the City of Palo Alto’s Application for a
County of Santa Clara Historical Heritage Grant for
Restoration and Repair of the Roth Building Elevator in Heritage Park
R E C I T A L S
A. The County of Santa Clara (“County”) has established the Historical Heritage Grant
program to promote historic preservation and the awareness of significant cultural, historical,
and archaeological resources within Santa Clara County (“Grant Program”); and
B. The County funds the Grant Program with County Park Charter Development Funds,
which must be used for the development of real property for county park purposes; and
C. The County requires that the property on which the grant-funded project is located be
continually used for park purposes for a minimum of 20 years and be open to all Santa Clara
County residents on a non-discriminatory basis; and
D. The City of Palo Alto (the “Applicant”) proposes that the County award Grant Program
funds for the restoration and repair of the elevator in the Roth Building in Heritage Park (the
“Project”), located at 300 Homer Ave, Palo Alto, California 94301 (the “Property”), and owned
or controlled by the City of Palo Alto (the “Property Holder”); and
E. The Property Holder has granted permission (consent) to Applicant to use the property
for the Project for the period of twenty years (20 years), and said consent is evidenced by a
grant deed, lease, license or other agreement granting such rights to the Applicant; and
F. Applicant is required pursuant to the Historical Heritage Grant Program Procedural
Guide to designate a legally authorized representative to administer the Project and to execute
the Grant Funding Agreement (“Grant Agreement”), along with any amendments thereto, on
behalf of the Applicant.
NOW THEREFORE THE CITY COUNCIL OF THE CITY OF PALO ALTO RESOLVES AS FOLLOWS:
SECTION 1. The Project is located on land that will be continually used for park purposes for
a minimum of 20 years and, subject to Constitutional or local Charter limits on appropriations
for future years, will be open to all Santa Clara County residents on a non -discriminatory basis;
and
5.a
Packet Pg. 143
SECTION 2. The City of Palo Alto has reviewed the proposed Project and provided all
required approvals for the Project in the Park, including, but not limited to, any licenses,
permits, environmental review and will approve the operational agreements required prior to
authorizing construction; and
SECTION 3. The City Council hereby delegates authority to the City Manager or their
designee, to sign and submit the Grant Application to the County, to negotiate, execute,
amend, or terminate the Grant Agreement and any other agreements in relation to the
Historical Heritage Grant Program, and authority to administer and carry out all terms and
conditions of the Grant Agreement and related agreements including, but not limited to, taking
any all other necessary actions to complete the Project.
SECTION 4. By delegating such authority to the City Manager, the City Council acknowledges,
agrees, represents and warrants that the execution of the Grant Agreement and any and all
other agreements or amendments by the City Manager binds and obligates the City Council of
the City of Palo Alto to comply with all terms and conditions of such agreements, without the
necessity of additional approvals or conditions;
SECTION 5. The City Council has had the opportunity to seek the advice of its own legal
counsel and other professionals in connection with the Grant Agreement and the Historical
Heritage Grant Program Procedural Guide.
/ /
/ /
/ /
/ /
/ /
/ /
/ /
/ /
/ /
/ /
/ /
5.a
Packet Pg. 144
SECTION 6. The City Council hereby approves the grant application submitted on its behalf to
the County’s Historical Heritage Grant Program funds for the restoration and repair of the Roth
Building Elevator Project in Heritage Park.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager or Designee
City Attorney
Director of Administrative Services
5.a
Packet Pg. 145
City of Palo Alto (ID # 13449)
City Council Staff Report
Meeting Date: 12/6/2021
City of Palo Alto Page 1
Title: Amendment No. One with Ten Geographic Information Systems (GIS)
On-Call Professional Service Contracts with: 1) Critigen LLC; 2) GIS Solutions,
Inc.; 3) Utility DataContracts, Inc.; 4) Turf Image, Inc.; 5) Vestra Resources,
Inc.; 6) Michael Baker In ternational, Inc.; 7) iSpatial Techno Solutions, Inc.; 8)
Geographic Information Services, Inc.; 9) Seven Tablets, Inc.; and, 10)
Timmons Group, Inc., C20174611(A -F), Increasing the Not-To -Exceed Amount
from $700,000 Annually for Contract Year 1, to $1,500 ,000 Annually for
Contract Years 2 through 5, for a Total Not -to-Exceed Amount $6,700,000
over the Five -Year Term Across All Ten On -Call GIS Contracts
From: City Manager
Lead Department: IT Department
Recommendation
Staff recommends that Council approve and authorize the City Manager or their
designee to execute contract amendment number one with ten Geographic Information
Systems (GIS) On-Call Professional Services contracts with: 1) Critigen LLC; 2) GIS
Solutions, Inc.; 3) Utility Data Contracts, Inc.; 4) Turf Image, Inc.; 5) Vestra Resources,
Inc.; 6) Michael Baker International, Inc.; 7) iSpatial Techno Solutions, Inc.; 8)
Geographic Information Services, Inc.; 9) Seven Tablets, Inc.; and, 10) Timmons
Group, Inc., Contract Numbers C20174611(A-F), to increase the combined not-to-
exceed amount from $700,000 annually in contract year 1, to $1,500,000 annually in
contract years 2 through 5 across all ten contracts, bringing the new contract not-to-
exceed combined amount across all ten contracts to $6,700,000 over the five-year
contract term.
The City does not guarantee any minimum quantity of work or compensation with any
of these consultants during the contract period (Attachment A).
Background
As part of the GIS modernization project, several projects have been identified to
replace or implement new GIS capabilities for City departments and for the public. In
April 2019, staff issued a Request for Proposal (RFP) to identify a number of qualified
firms to provide GIS on-call professional services on an as-needed basis to help with the
6
Packet Pg. 146
City of Palo Alto Page 2
modernization. Since the City’s GIS needs span many domains such as Utilities, Public
Safety, Planning, and Public Works, the City required multiple vendors to ensure the
relevant domain expertise were chosen, therefore ten vendors were selected. The
current not-to-exceed amount for these ten contracts combined is $700,000 annually.
Council previously approved these ten contracts for five -years on May 11, 2020, CMR
10413, page 6-10. Staff recommend increasing the combined not-to-exceed amount
from $700,000 annually in contract year 1, to $1,500,000 annually in contract years 2
through 5 across all ten contracts, for a total contract not-to-exceed amount of
$6,700,000 over the five-year term, as necessary to provide department-specific GIS
solutions.
Discussion
In March 2021 the City rolled out its new internal and external GIS platform, which is a
complete software system to meet all geospatial needs. ArcGIS Enterprise and ArcGIS
Online are full-featured mapping and analytics platforms functional across multiple
devices and business needs.
Since the production rollout of the new enterprise GIS, some department-specific
projects are currently being worked on and many more department-specific projects
spanning Utilities, Public Safety, Planning, Transportation, and Public Works ha ve been
identified by departments which will be initiated soon.
The following are some of the high priority projects expected to be in progress during
FY2022:
• IT: Continue migrating legacy GIS components into the new Enterprise GIS
• Utilities: New Fiber Management System
• Utilities: New Electric GIS system
• Utilities: Fiber to the home GIS-based community engagement site
• Public Works: Urban Forestry legacy system migration to in-house Enterprise
GIS-based solution
• Public Works: Zero waste enforcement data management system
• Public Works: Watershed Protection business inspection for FOG [Fats, Oil and
Grease] workflow and inspection
• Utilities\Public Works: Urban Forestry LiDAR (Light Detection and Ranging)
analysis, vegetation overhang on electric conductors, and risk analysis tool
• Planning: Replacement of legacy permitting and GIS tool to the new enterprise
GIS based solution
• Citywide: ‘Heads Up’ replacement project, building a new public right of way
notification system
• Citywide: ArcGIS integration with existing permit platform
• Utilities: Mobile applications for field crew to view utility digital maps on any
device, anywhere, at any time
6
Packet Pg. 147
City of Palo Alto Page 3
There is a significant cost saving for the City by enabling the departments to leverage
the new Enterprise GIS system and to work with one of the ten selected vendors whose
expertise span many domains such as Utilities, Public Safety, Planning, Public Works,
etc. Departments are also able to have modern, feature -rich, robust, and secure GIS
solutions implemented that run on the City’s Enterprise GIS platform and can avoid any
recurring external vendor annual software licensing fees and reduce the true cost of
ownership.
With the rapid adoption of the ArcGIS platform by the departments and with many
more department-specific solutions coming to fruition, Staff recommend increasing the
combined not-to-exceed amount from $700,000 annually in contract year 1, to
$1,500,000 annually in contract years 2 through 5 across all ten contracts, for a total
contract not-to-exceed amount of $6,700,000 over the five-year term, as necessary to
complete the department-specific GIS solutions.
Resource Impact
For department-specific GIS initiatives, funds are identified through the requesting
department at the time of project initiation. Should additional funding appropriation be
needed, budgetary adjustments will be brought forward for City Council consideration
as appropriate. For City-wide or IT initiatives, the initial $700,000 was approved and
adopted through the Information Technology Fund in Fiscal Year 2019 and
reappropriated in Fiscal Year 2020 and Fiscal Year 2021 . Staff anticipates the remaining
balance of the $700,000 will be expended by the end of Fiscal Year 2022. Staff
anticipates a recommendation for ongoing funding for GIS on-call services in Fiscal Year
2023 during the annual budgeting cycle.
The cost of GIS on-call services will be managed in the Information Technology Fund
and budgeted as allocated charges in citywide departments; therefore, corresponding
increases in various departments' allocated charges for internal services provided by the
Information Technology Department will be impacted by this expense. Funding for
future years of the contracts is subject to City Council approval through the annual
budget process.
Stakeholder Engagement
The GIS Program Manager meets with several City departments to discuss
enhancements and new initiatives with the new ESRI platform on a regular basis.
Environmental Review
Approval of this agreement does not constitute a project under the California
Environmental Quality Act (CEQA), therefore, an environmental assessment is not
required.
Attachments:
6
Packet Pg. 148
City of Palo Alto Page 4
• Attachment6.a: Attachment A: On-Call GIS Contracts; C20174611 A-F, Amendment
#1
6
Packet Pg. 149
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 1 TO CONTRACT NO. C20174611A
BETWEEN THE CITY OF PALO ALTO AND CRITIGEN, LLC
This Amendment No. 1 (this “Amendment”) to Contract No. C20174611A (the “Contract”
as defined below) is entered into as of December 6, 2021, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and CRITIGEN, LLC, a Delaware Limited
Liability Corporation, located at 7555 East Hampden Ave, Suite 425, Denver, CO 80231
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of implementing a new enterprise Geographic Information System (GIS) and
engaging a consultant to provide on-call, time-limited project support services for the Information
Technology Department , as detailed therein.
B. The Parties now wish to amend the Contract in order to increase the quantity of on-
call, time-limited project support services that may be ordered annually from consultant by City
under the Contract and, accordingly, to increase the annual possible (but not guaranteed) total not-
to-exceed compensation amount from Seven Hundred Thousand Dollars ($700,000) annually for
contract year 1, to One Million Five Hundred Thousand Dollars ($1,500,000) annually for contract
years 2 through 5, for a contract total not-to-exceed amount of Six Million Seven Hundred
Thousand Dollars ($6,700,000) over the five-year term across the pool of ten on-call contracts for
GIS consulting services (of which this Contract is one), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174611A
between CONSULTANT and CITY, dated May 11, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4, “NOT TO EXCEED COMPENSATION,” of the Contract is hereby
amended to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for
performance of the Services described in Section 1 and Exhibit “A” of this Agreement shall not
exceed Seven Hundred Thousand Dollars ($700,000) annually for contract year 1, and One Million
6.a
Packet Pg. 150
Vers.: Aug. 5, 2019
Page 2 of 3
Five Hundred Thousand Dollars ($1,500,000.00) annually for contract years 2 through 5, provided,
however, CONSULTANT acknowledges that the compensation paid to it likely will be less than the
afore-stated annual amount per applicable contract year, as CITY has appropriated that amount to
payments to be made under ten on-call contracts, of which this Agreement is one. The ten on-call
contracts shall be administered by the Information Technology Department to ensure the total
aggregate of compensation paid per contract year for these GIS on-call project support services
across all such contracts will not exceed the afore-stated annual amount per applicable contract
year, with a total not-to-exceed contract amount of Six Million Seven Hundred Thousand Dollars
($6,700,000) over the five-year term of the Agreement. The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at Exhibit “C-1”,
entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum compensation as set forth herein shall be at no cost
to the CITY.
The CITY is hiring ten consultants, none of whom, including the CONSULTANT under this
Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work
is performed by any one or more such consultants, CITY will ensure that total compensation to all
such consultants will not exceed in the aggregate Seven Hundred Thousand Dollars ($700,000)
annually for contract year 1, and One Million Five Hundred Thousand Dollars ($1,500,000) annually
for contract years 2 through 5.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
6.a
Packet Pg. 151
Vers.: Aug. 5, 2019
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
CRITIGEN, LLC
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments: None
6.a
Packet Pg. 152
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 1 TO CONTRACT NO. C20174611B
BETWEEN THE CITY OF PALO ALTO AND GIS SOLUTIONS, INC
This Amendment No. 1 (this “Amendment”) to Contract No. C20174611B (the “Contract”
as defined below) is entered into as of December 6, 2021, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and GIS SOLUTIONS, INC , an Illinois
Corporation , located at 3901 Yucan Dr. Suite 201, Springfield, IL 62711 (“CONSULTANT”). CITY and
CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of implementing a new enterprise Geographic Information System (GIS) and
engaging a consultant to provide on-call, time-limited project support services for the Information
Technology Department , as detailed therein.
B. The Parties now wish to amend the Contract in order to increase the quantity of on-
call, time-limited project support services that may be ordered annually from consultant by City
under the Contract and, accordingly, to increase the annual possible (but not guaranteed) total not-
to-exceed compensation amount from Seven Hundred Thousand Dollars ($700,000) annually for
contract year 1, to One Million Five Hundred Thousand Dollars ($1,500,000) annually for contract
years 2 through 5, for a contract total not-to-exceed amount of Six Million Seven Hundred
Thousand Dollars ($6,700,000) over the five-year term across the pool of ten on-call contracts for
GIS consulting services (of which this Contract is one), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174611B
between CONSULTANT and CITY, dated May 11, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended
to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for
performance of the Services described in Section 1 and Exhibit “A” of this Agreement shall not
exceed Seven Hundred Thousand Dollars ($700,000) annually for contract year 1, and One Million
Five Hundred Thousand Dollars ($1,500,000.00) annually for contract years 2 through 5, provided,
6.a
Packet Pg. 153
Vers.: Aug. 5, 2019
Page 2 of 3
however, CONSULTANT acknowledges that the compensation paid to it likely will be less than the
afore-stated annual amount per applicable contract year, as CITY has appropriated that amount to
payments to be made under ten on-call contracts, of which this Agreement is one. The ten on-call
contracts shall be administered by the Information Technology Department to ensure the total
aggregate of compensation paid per contract year for these GIS on-call project support services
across all such contracts will not exceed the afore-stated annual amount per applicable contract
year, with a total not-to-exceed contract amount of Six Million Seven Hundred Thousand Dollars
($6,700,000) over the five-year term of the Agreement. The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at Exhibit “C-1”,
entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum compensation as set forth herein shall be at no cost
to the CITY.
The CITY is hiring ten consultants, none of whom, including the CONSULTANT under this
Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work
is performed by any one or more such consultants, CITY will ensure that total compensation to all
such consultants will not exceed in the aggregate Seven Hundred Thousand Dollars ($700,000)
annually for contract year 1, and One Million Five Hundred Thousand Dollars ($1,500,000) annually
for contract years 2 through 5.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
6.a
Packet Pg. 154
Vers.: Aug. 5, 2019
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
GIS SOLUTIONS, INC
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments: None
6.a
Packet Pg. 155
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 1 TO CONTRACT NO. C20174611C
BETWEEN THE CITY OF PALO ALTO AND UTILITY DATA CONTRACTORS, INC
This Amendment No. 1 (this “Amendment”) to Contract No. C20174611C (the “Contract”
as defined below) is entered into as of December 6, 2021, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and UTILITY DATA CONTRACTORS, INC , a
Colorado Corporation, , located at 82 Inverness Drive East #A1, Englewood, CO 80112
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of implementing a new enterprise Geographic Information System (GIS) and
engaging a consultant to provide on-call, time-limited project support services for the Information
Technology Department , as detailed therein.
B. The Parties now wish to amend the Contract in order to increase the quantity of on-
call, time-limited project support services that may be ordered annually from consultant by City
under the Contract and, accordingly, to increase the annual possible (but not guaranteed) total not-
to-exceed compensation amount from Seven Hundred Thousand Dollars ($700,000) annually for
contract year 1, to One Million Five Hundred Thousand Dollars ($1,500,000) annually for contract
years 2 through 5, for a contract total not-to-exceed amount of Six Million Seven Hundred
Thousand Dollars ($6,700,000) over the five-year term across the pool of ten on-call contracts for
GIS consulting services (of which this Contract is one), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174611C
between CONSULTANT and CITY, dated May 11, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended
to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for
performance of the Services described in Section 1 and Exhibit “A” of this Agreement shall not
exceed Seven Hundred Thousand Dollars ($700,000) annually for contract year 1, and One Million
6.a
Packet Pg. 156
Vers.: Aug. 5, 2019
Page 2 of 3
Five Hundred Thousand Dollars ($1,500,000.00) annually for contract years 2 through 5, provided,
however, CONSULTANT acknowledges that the compensation paid to it likely will be less than the
afore-stated annual amount per applicable contract year, as CITY has appropriated that amount to
payments to be made under ten on-call contracts, of which this Agreement is one. The ten on-call
contracts shall be administered by the Information Technology Department to ensure the total
aggregate of compensation paid per contract year for these GIS on-call project support services
across all such contracts will not exceed the afore-stated annual amount per applicable contract
year, with a total not-to-exceed contract amount of Six Million Seven Hundred Thousand Dollars
($6,700,000) over the five-year term of the Agreement. The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at Exhibit “C-1”,
entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum compensation as set forth herein shall be at no cost
to the CITY.
The CITY is hiring ten consultants, none of whom, including the CONSULTANT under this
Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work
is performed by any one or more such consultants, CITY will ensure that total compensation to all
such consultants will not exceed in the aggregate Seven Hundred Thousand Dollars ($700,000)
annually for contract year 1, and One Million Five Hundred Thousand Dollars ($1,500,000) annually
for contract years 2 through 5.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
6.a
Packet Pg. 157
Vers.: Aug. 5, 2019
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
UTILITY DATA CONTRACTORS, INC
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments: None
6.a
Packet Pg. 158
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 1 TO CONTRACT NO. C20174611D
BETWEEN THE CITY OF PALO ALTO AND
TURF IMAGE, INC. dba GREEN INFRASTRUCTURE DESIGN
This Amendment No. 1 (this “Amendment”) to Contract No. C20174611D (the “Contract”
as defined below) is entered into as of December 6, 2021, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and TURF IMAGE, INC. dba GREEN
INFRASTRUCTURE DESIGN , a California Corporation, , located at 177 Webster Street #368,
Monterey, CA 93940 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the
“Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of implementing a new enterprise Geographic Information System (GIS) and
engaging a consultant to provide on-call, time-limited project support services for the Information
Technology Department , as detailed therein.
B. The Parties now wish to amend the Contract in order to increase the quantity of on-
call, time-limited project support services that may be ordered annually from consultant by City
under the Contract and, accordingly, to increase the annual possible (but not guaranteed) total not-
to-exceed compensation amount from Seven Hundred Thousand Dollars ($700,000) annually for
contract year 1, to One Million Five Hundred Thousand Dollars ($1,500,000) annually for contract
years 2 through 5, for a contract total not-to-exceed amount of Six Million Seven Hundred
Thousand Dollars ($6,700,000) over the five-year term across the pool of ten on-call contracts for
GIS consulting services (of which this Contract is one), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174611D
between CONSULTANT and CITY, dated May 11, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended
to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for
performance of the Services described in Section 1 and Exhibit “A” of this Agreement shall not
6.a
Packet Pg. 159
Vers.: Aug. 5, 2019
Page 2 of 3
exceed Seven Hundred Thousand Dollars ($700,000) annually for contract year 1, and One Million
Five Hundred Thousand Dollars ($1,500,000.00) annually for contract years 2 through 5, provided,
however, CONSULTANT acknowledges that the compensation paid to it likely will be less than the
afore-stated annual amount per applicable contract year, as CITY has appropriated that amount to
payments to be made under ten on-call contracts, of which this Agreement is one. The ten on-call
contracts shall be administered by the Information Technology Department to ensure the total
aggregate of compensation paid per contract year for these GIS on-call project support services
across all such contracts will not exceed the afore-stated annual amount per applicable contract
year, with a total not-to-exceed contract amount of Six Million Seven Hundred Thousand Dollars
($6,700,000) over the five-year term of the Agreement. The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at Exhibit “C-1”,
entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum compensation as set forth herein shall be at no cost
to the CITY.
The CITY is hiring ten consultants, none of whom, including the CONSULTANT under this
Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work
is performed by any one or more such consultants, CITY will ensure that total compensation to all
such consultants will not exceed in the aggregate Seven Hundred Thousand Dollars ($700,000)
annually for contract year 1, and One Million Five Hundred Thousand Dollars ($1,500,000) annually
for contract years 2 through 5.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
6.a
Packet Pg. 160
Vers.: Aug. 5, 2019
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
TURF IMAGE, INC. dba GREEN
INFRASTRUCTURE DESIGN
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments: None
6.a
Packet Pg. 161
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 1 TO CONTRACT NO. C20174611E
BETWEEN THE CITY OF PALO ALTO AND VESTRA RESOURCES, INC
This Amendment No. 1 (this “Amendment”) to Contract No. C20174611E (the “Contract” as
defined below) is entered into as of December 6, 2021, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and VESTRA RESOURCES, INC , a California
Corporation, , located at 5300 Aviation Drive, Redding, CA 96002 (“CONSULTANT”). CITY and
CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of implementing a new enterprise Geographic Information System (GIS) and
engaging a consultant to provide on-call, time-limited project support services for the Information
Technology Department , as detailed therein.
B. The Parties now wish to amend the Contract in order to increase the quantity of on-
call, time-limited project support services that may be ordered annually from consultant by City
under the Contract and, accordingly, to increase the annual possible (but not guaranteed) total not-
to-exceed compensation amount from Seven Hundred Thousand Dollars ($700,000) annually for
contract year 1, to One Million Five Hundred Thousand Dollars ($1,500,000) annually for contract
years 2 through 5, for a contract total not-to-exceed amount of Six Million Seven Hundred
Thousand Dollars ($6,700,000) over the five-year term across the pool of ten on-call contracts for
GIS consulting services (of which this Contract is one), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174611E
between CONSULTANT and CITY, dated May 11, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended
to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for
performance of the Services described in Section 1 and Exhibit “A” of this Agreement shall not
exceed Seven Hundred Thousand Dollars ($700,000) annually for contract year 1, and One Million
Five Hundred Thousand Dollars ($1,500,000.00) annually for contract years 2 through 5, provided,
6.a
Packet Pg. 162
Vers.: Aug. 5, 2019
Page 2 of 3
however, CONSULTANT acknowledges that the compensation paid to it likely will be less than the
afore-stated annual amount per applicable contract year, as CITY has appropriated that amount to
payments to be made under ten on-call contracts, of which this Agreement is one. The ten on-call
contracts shall be administered by the Information Technology Department to ensure the total
aggregate of compensation paid per contract year for these GIS on-call project support services
across all such contracts will not exceed the afore-stated annual amount per applicable contract
year, with a total not-to-exceed contract amount of Six Million Seven Hundred Thousand Dollars
($6,700,000) over the five-year term of the Agreement. The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at Exhibit “C-1”,
entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum compensation as set forth herein shall be at no cost
to the CITY.
The CITY is hiring ten consultants, none of whom, including the CONSULTANT under this
Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work
is performed by any one or more such consultants, CITY will ensure that total compensation to all
such consultants will not exceed in the aggregate Seven Hundred Thousand Dollars ($700,000)
annually for contract year 1, and One Million Five Hundred Thousand Dollars ($1,500,000) annually
for contract years 2 through 5.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
6.a
Packet Pg. 163
Vers.: Aug. 5, 2019
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
VESTRA RESOURCES, INC
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments: None
6.a
Packet Pg. 164
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 1 TO CONTRACT NO. C20174611F
BETWEEN THE CITY OF PALO ALTO AND MICHAEL BAKER INTERNATIONAL, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C20174611F (the “Contract” as
defined below) is entered into as of December 6, 2021, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and MICHAEL BAKER INTERNATIONAL, INC. , a
Pennsylvania Corporation, , located at 5 Hutton Centre Drive, Suite 500, Santa Ana, CA 92707
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of implementing a new enterprise Geographic Information System (GIS) and
engaging a consultant to provide on-call, time-limited project support services for the Information
Technology Department , as detailed therein.
B. The Parties now wish to amend the Contract in order to increase the quantity of on-
call, time-limited project support services that may be ordered annually from consultant by City
under the Contract and, accordingly, to increase the annual possible (but not guaranteed) total not-
to-exceed compensation amount from Seven Hundred Thousand Dollars ($700,000) annually for
contract year 1, to One Million Five Hundred Thousand Dollars ($1,500,000) annually for contract
years 2 through 5, for a contract total not-to-exceed amount of Six Million Seven Hundred
Thousand Dollars ($6,700,000) over the five-year term across the pool of ten on-call contracts for
GIS consulting services (of which this Contract is one), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174611F
between CONSULTANT and CITY, dated May 11, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended
to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for
performance of the Services described in Section 1 and Exhibit “A” of this Agreement shall not
exceed Seven Hundred Thousand Dollars ($700,000) annually for contract year 1, and One Million
6.a
Packet Pg. 165
Vers.: Aug. 5, 2019
Page 2 of 3
Five Hundred Thousand Dollars ($1,500,000.00) annually for contract years 2 through 5, provided,
however, CONSULTANT acknowledges that the compensation paid to it likely will be less than the
afore-stated annual amount per applicable contract year, as CITY has appropriated that amount to
payments to be made under ten on-call contracts, of which this Agreement is one. The ten on-call
contracts shall be administered by the Information Technology Department to ensure the total
aggregate of compensation paid per contract year for these GIS on-call project support services
across all such contracts will not exceed the afore-stated annual amount per applicable contract
year, with a total not-to-exceed contract amount of Six Million Seven Hundred Thousand Dollars
($6,700,000) over the five-year term of the Agreement. The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at Exhibit “C-1”,
entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum compensation as set forth herein shall be at no cost
to the CITY.
The CITY is hiring ten consultants, none of whom, including the CONSULTANT under this
Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work
is performed by any one or more such consultants, CITY will ensure that total compensation to all
such consultants will not exceed in the aggregate Seven Hundred Thousand Dollars ($700,000)
annually for contract year 1, and One Million Five Hundred Thousand Dollars ($1,500,000) annually
for contract years 2 through 5.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
6.a
Packet Pg. 166
Vers.: Aug. 5, 2019
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
MICHAEL BAKER INTERNATIONAL, INC.
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments: None
6.a
Packet Pg. 167
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 1 TO CONTRACT NO. C20174611G
BETWEEN THE CITY OF PALO ALTO AND ISPATIAL TECHNO SOLUTIONS, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C20174611G (the “Contract”
as defined below) is entered into as of December 6, 2021, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and ISPATIAL TECHNO SOLUTIONS, INC. , a
Delaware Corporation, , located at 9707 Waples Street, San Diego, CA 92121 (“CONSULTANT”).
CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of implementing a new enterprise Geographic Information System (GIS) and
engaging a consultant to provide on-call, time-limited project support services for the Information
Technology Department , as detailed therein.
B. The Parties now wish to amend the Contract in order to increase the quantity of on-
call, time-limited project support services that may be ordered annually from consultant by City
under the Contract and, accordingly, to increase the annual possible (but not guaranteed) total not-
to-exceed compensation amount from Seven Hundred Thousand Dollars ($700,000) annually for
contract year 1, to One Million Five Hundred Thousand Dollars ($1,500,000) annually for contract
years 2 through 5, for a contract total not-to-exceed amount of Six Million Seven Hundred
Thousand Dollars ($6,700,000) over the five-year term across the pool of ten on-call contracts for
GIS consulting services (of which this Contract is one), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174611G
between CONSULTANT and CITY, dated May 11, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended
to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for
performance of the Services described in Section 1 and Exhibit “A” of this Agreement shall not
exceed Seven Hundred Thousand Dollars ($700,000) annually for contract year 1, and One Million
Five Hundred Thousand Dollars ($1,500,000.00) annually for contract years 2 through 5, provided,
6.a
Packet Pg. 168
Vers.: Aug. 5, 2019
Page 2 of 3
however, CONSULTANT acknowledges that the compensation paid to it likely will be less than the
afore-stated annual amount per applicable contract year, as CITY has appropriated that amount to
payments to be made under ten on-call contracts, of which this Agreement is one. The ten on-call
contracts shall be administered by the Information Technology Department to ensure the total
aggregate of compensation paid per contract year for these GIS on-call project support services
across all such contracts will not exceed the afore-stated annual amount per applicable contract
year, with a total not-to-exceed contract amount of Six Million Seven Hundred Thousand Dollars
($6,700,000) over the five-year term of the Agreement. The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at Exhibit “C-1”,
entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum compensation as set forth herein shall be at no cost
to the CITY.
The CITY is hiring ten consultants, none of whom, including the CONSULTANT under this
Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work
is performed by any one or more such consultants, CITY will ensure that total compensation to all
such consultants will not exceed in the aggregate Seven Hundred Thousand Dollars ($700,000)
annually for contract year 1, and One Million Five Hundred Thousand Dollars ($1,500,000) annually
for contract years 2 through 5.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
6.a
Packet Pg. 169
Vers.: Aug. 5, 2019
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
ISPATIAL TECHNO SOLUTIONS, INC.
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments: None
6.a
Packet Pg. 170
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 1 TO CONTRACT NO. C20174611H
BETWEEN THE CITY OF PALO ALTO AND GEOGRAPHIC INFORMATION SERVICES, INC
This Amendment No. 1 (this “Amendment”) to Contract No. C20174611H (the “Contract”
as defined below) is entered into as of December 6, 2021, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and GEOGRAPHIC INFORMATION SERVICES,
INC , a Alabama Corporation, , located at 2100 Riverchase Center, Suite 105, Birmingham, AL 35244
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of implementing a new enterprise Geographic Information System (GIS) and
engaging a consultant to provide on-call, time-limited project support services for the Information
Technology Department , as detailed therein.
B. The Parties now wish to amend the Contract in order to increase the quantity of on-
call, time-limited project support services that may be ordered annually from consultant by City
under the Contract and, accordingly, to increase the annual possible (but not guaranteed) total not-
to-exceed compensation amount from Seven Hundred Thousand Dollars ($700,000) annually for
contract year 1, to One Million Five Hundred Thousand Dollars ($1,500,000) annually for contract
years 2 through 5, for a contract total not-to-exceed amount of Six Million Seven Hundred
Thousand Dollars ($6,700,000) over the five-year term across the pool of ten on-call contracts for
GIS consulting services (of which this Contract is one), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174611H
between CONSULTANT and CITY, dated May 11, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended
to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for
performance of the Services described in Section 1 and Exhibit “A” of this Agreement shall not
exceed Seven Hundred Thousand Dollars ($700,000) annually for contract year 1, and One Million
6.a
Packet Pg. 171
Vers.: Aug. 5, 2019
Page 2 of 3
Five Hundred Thousand Dollars ($1,500,000.00) annually for contract years 2 through 5, provided,
however, CONSULTANT acknowledges that the compensation paid to it likely will be less than the
afore-stated annual amount per applicable contract year, as CITY has appropriated that amount to
payments to be made under ten on-call contracts, of which this Agreement is one. The ten on-call
contracts shall be administered by the Information Technology Department to ensure the total
aggregate of compensation paid per contract year for these GIS on-call project support services
across all such contracts will not exceed the afore-stated annual amount per applicable contract
year, with a total not-to-exceed contract amount of Six Million Seven Hundred Thousand Dollars
($6,700,000) over the five-year term of the Agreement. The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at Exhibit “C-1”,
entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum compensation as set forth herein shall be at no cost
to the CITY.
The CITY is hiring ten consultants, none of whom, including the CONSULTANT under this
Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work
is performed by any one or more such consultants, CITY will ensure that total compensation to all
such consultants will not exceed in the aggregate Seven Hundred Thousand Dollars ($700,000)
annually for contract year 1, and One Million Five Hundred Thousand Dollars ($1,500,000) annually
for contract years 2 through 5.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
6.a
Packet Pg. 172
Vers.: Aug. 5, 2019
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
GEOGRAPHIC INFORMATION
SERVICES, INC
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments: None
6.a
Packet Pg. 173
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 1 TO CONTRACT NO. C20174611I
BETWEEN THE CITY OF PALO ALTO AND SEVEN TABLETS, INC
This Amendment No. 1 (this “Amendment”) to Contract No. C20174611I (the “Contract” as
defined below) is entered into as of December 6, 2021, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and SEVEN TABLETS, INC , a Texas Corporation,
, located at 5080 Spectrum Drive, Suite 1125E, Addison, TX 75001 (“CONSULTANT”). CITY and
CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of implementing a new enterprise Geographic Information System (GIS) and
engaging a consultant to provide on-call, time-limited project support services for the Information
Technology Department , as detailed therein.
B. The Parties now wish to amend the Contract in order to increase the quantity of on-
call, time-limited project support services that may be ordered annually from consultant by City
under the Contract and, accordingly, to increase the annual possible (but not guaranteed) total not-
to-exceed compensation amount from Seven Hundred Thousand Dollars ($700,000) annually for
contract year 1, to One Million Five Hundred Thousand Dollars ($1,500,000) annually for contract
years 2 through 5, for a contract total not-to-exceed amount of Six Million Seven Hundred
Thousand Dollars ($6,700,000) over the five-year term across the pool of ten on-call contracts for
GIS consulting services (of which this Contract is one), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174611I
between CONSULTANT and CITY, dated May 11, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended
to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for
performance of the Services described in Section 1 and Exhibit “A” of this Agreement shall not
exceed Seven Hundred Thousand Dollars ($700,000) annually for contract year 1, and One Million
Five Hundred Thousand Dollars ($1,500,000.00) annually for contract years 2 through 5, provided,
6.a
Packet Pg. 174
Vers.: Aug. 5, 2019
Page 2 of 3
however, CONSULTANT acknowledges that the compensation paid to it likely will be less than the
afore-stated annual amount per applicable contract year, as CITY has appropriated that amount to
payments to be made under ten on-call contracts, of which this Agreement is one. The ten on-call
contracts shall be administered by the Information Technology Department to ensure the total
aggregate of compensation paid per contract year for these GIS on-call project support services
across all such contracts will not exceed the afore-stated annual amount per applicable contract
year, with a total not-to-exceed contract amount of Six Million Seven Hundred Thousand Dollars
($6,700,000) over the five-year term of the Agreement. The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at Exhibit “C-1”,
entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum compensation as set forth herein shall be at no cost
to the CITY.
The CITY is hiring ten consultants, none of whom, including the CONSULTANT under this
Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work
is performed by any one or more such consultants, CITY will ensure that total compensation to all
such consultants will not exceed in the aggregate Seven Hundred Thousand Dollars ($700,000)
annually for contract year 1, and One Million Five Hundred Thousand Dollars ($1,500,000) annually
for contract years 2 through 5.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
6.a
Packet Pg. 175
Vers.: Aug. 5, 2019
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
SEVEN TABLETS, INC
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments: None
6.a
Packet Pg. 176
Vers.: Aug. 5, 2019
Page 1 of 3
AMENDMENT NO. 1 TO CONTRACT NO. C20174611J
BETWEEN THE CITY OF PALO ALTO AND TIMMONS GROUP, INC
This Amendment No. 1 (this “Amendment”) to Contract No. C20174611J (the “Contract” as
defined below) is entered into as of December 6, 2021, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and TIMMONS GROUP, INC , a Virginia
Corporation, , located at 1001 Boulders Parkway, Suite 300, Richmond, VA 23225
(“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this
Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the provision of implementing a new enterprise Geographic Information System (GIS) and
engaging a consultant to provide on-call, time-limited project support services for the Information
Technology Department , as detailed therein.
B. The Parties now wish to amend the Contract in order to increase the quantity of on-
call, time-limited project support services that may be ordered annually from consultant by City
under the Contract and, accordingly, to increase the annual possible (but not guaranteed) total not-
to-exceed compensation amount from Seven Hundred Thousand Dollars ($700,000) annually for
contract year 1, to One Million Five Hundred Thousand Dollars ($1,500,000) annually for contract
years 2 through 5, for a contract total not-to-exceed amount of Six Million Seven Hundred
Thousand Dollars ($6,700,000) over the five-year term across the pool of ten on-call contracts for
GIS consulting services (of which this Contract is one), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C20174611J
between CONSULTANT and CITY, dated May 11, 2020.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4. NOT TO EXCEED COMPENSATION of the Contract is hereby amended
to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for
performance of the Services described in Section 1 and Exhibit “A” of this Agreement shall not
exceed Seven Hundred Thousand Dollars ($700,000) annually for contract year 1, and One Million
6.a
Packet Pg. 177
Vers.: Aug. 5, 2019
Page 2 of 3
Five Hundred Thousand Dollars ($1,500,000.00) annually for contract years 2 through 5, provided,
however, CONSULTANT acknowledges that the compensation paid to it likely will be less than the
afore-stated annual amount per applicable contract year, as CITY has appropriated that amount to
payments to be made under ten on-call contracts, of which this Agreement is one. The ten on-call
contracts shall be administered by the Information Technology Department to ensure the total
aggregate of compensation paid per contract year for these GIS on-call project support services
across all such contracts will not exceed the afore-stated annual amount per applicable contract
year, with a total not-to-exceed contract amount of Six Million Seven Hundred Thousand Dollars
($6,700,000) over the five-year term of the Agreement. The applicable rate schedule by which
CONSULTANT will be paid for Services rendered under this Agreement is set out at Exhibit “C-1”,
entitled “HOURLY RATE SCHEDULE”. Any work performed or expenses incurred for which payment
would result in a total exceeding the maximum compensation as set forth herein shall be at no cost
to the CITY.
The CITY is hiring ten consultants, none of whom, including the CONSULTANT under this
Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work
is performed by any one or more such consultants, CITY will ensure that total compensation to all
such consultants will not exceed in the aggregate Seven Hundred Thousand Dollars ($700,000)
annually for contract year 1, and One Million Five Hundred Thousand Dollars ($1,500,000) annually
for contract years 2 through 5.”
SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
6.a
Packet Pg. 178
Vers.: Aug. 5, 2019
Page 3 of 3
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
TIMMONS GROUP, INC
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments: None
6.a
Packet Pg. 179
City of Palo Alto (ID # 13432)
City Council Staff Report
Meeting Date: 12/6/2021
City of Palo Alto Page 1
Title: Amendment Number 1 to Contract Number C19173686 with
OpenCities, Inc. to Add to Increase the Scope of Services to Add Additional
Website Functionalities such as a Junior Museum Sub -Website, and Increase
the Compensation Amount Accordingly, by $167,3 17 for a New Not-to-Exceed
Contract Amount of $434,517 through FY25
From: City Manager
Lead Department: IT Department
Recommendation
Staff recommends that Council approve and authorize the City Manager or their
designee to: execute Contract Amendment No. 1 to Contract No. C19173686 with
OpenCities, Inc, (Attachment A) to add to the Scope of Services the creation of a new
sub-website for the Palo Alto Junior Museum and Zoo (JMZ), migrate the City’s intranet
to an OpenCities provided intranet, add capabilities (Enterprise Open Forms) to enhance
the user experience, and increase the Additional Services amount by $70,800 (from
$22,500 to $96,000), increasing the not-to-exceed amount of the contract (including
Additional Services) by $167,317, from $267,200 to a new total contact not-to-exceed
amount of $434,517, through Fiscal Year 2025.
Background
In 2018, a formal Request for Proposal was issued to replace the City website platform.
Eleven proposals were received, and four vendors were shortlisted. Out of those four
vendors, OpenCities was selected and approved by Council (CMR 10269) on October 7,
2019.
In April of 2021, a new City of Palo Alto website supported by OpenCities went live, and
the old website platform was decommissioned.
Task Date
Website Beta Release Start February 10, 2021
Website Beta Release End February 24, 2021
Website Final Go-Live April 8, 2021
7
Packet Pg. 180
City of Palo Alto Page 2
Highlights from the new website include:
• User statistics from April 8, 2021 to July 26, 2021 include 470,000 unique
pageviews on our website.
• The new website is dynamic, mobile friendly and supports multiple browsers.
• The new website also provides a service centric experience to the community
through its online services format at
https://www.cityofpaloalto.org/Residents/Services
• Online forms have replaced our PDF forms for a much better user experience.
• The new website navigation and more robust search engine easily connects the
community with what they are looking for.
• Integration with google maps and the new “search near me” functionality
provides a better overall website experience.
Discussion
The Palo Alto Junior Museum and Zoo is requesting a special subsite be created by
OpenCities that captures the community experience of the new reimagined and
reopened facility. OpenCities will host the new subsite along with design, development
and training services for staff. The cost to design this page is $17,750 plus a pro-rated
maintenance cost of $1,667, totaling $19,417. The full annual ongoing maintenance
charge for this subsite is $2,500. In 2020, the City engaged a museum and zoo
consultant who analyzed the market potential of the Palo Alto Junior Museum & Zoo
and provided recommendations for outward-facing strategies crucial to creating public
appeal and building a strong foundation for visitor support. The new JMZ website will
be dynamic and easy to use, supporting a better ticket sales experience and compete
with other equivalent museum and zoo’s in the area.
Staff design recommendations will maximize the experience, provide a seamless
experience from the City’s new website and provide an overall better experience that
matches the new Palo Alto Junior Museum & Zoo as a destination for visitors. One such
item that has been added is Enterprise Open Forms to replace PDF forms.
Further functionality that is being requested by departments is the integration with 3rd
party tools being used by departments and other community collaboration modules
offered by Open Cities. Staff is requesting to increase the Additional Services amount by
$70,800 to $96,000 over the life of the contract to be able to leverage further
enhancements and functionality sitewide.
Additionally, Staff is currently evaluating the migration of our current City Intranet to
OpenCities Intranet. The current intranet platform is being retired by the vendor and
will not be supported at the end of this calendar year. The Intranet has not been
updated for 8 years and does not provide the platform that staff needs to be able to
communicate information efficiently to its workforce.
Resource Impact
7
Packet Pg. 181
City of Palo Alto Page 3
Funds for the current year of this contract are available in the FY 2022 Adopted Budget
in the Technology Fund. Funding for future years is subject to City Council approval
through the annual budget process.
The one-time fees for the JMZ subsite will be funded through the Community Services
Department Capital Improvement Project for the JMZ (AC-18001). The one-time fees
for migration of the City’s intranet to OpenCities will be funded through the Information
Technology Fund.
The additional ongoing funding that is being requested for the JMZ subsite
maintenance, enterprise open forms and other enhancements, and the ongoing intranet
maintenance costs, will be subject to the appropriation of funds through the annual
budgeting process.
Breakdown of fees:
FY21
(contract
year 1)
FY22
(contract
year 2)
FY23
(contract
year 3)
FY24
(contract
year 4)
FY25
(contract
year 5)
Original Not-To-Exceed Amount $242,000 $0 $0 $0 $0
Enterprise Open Forms $0 $5,000 $5,000 $5,000 $5,000
JMZ Subsite One-Time $0 $17,750 $0 $0 $0
JMZ Subsite Ongoing $0 $1,667 $2,500 $2,500 $2,500
Intranet One-Time $0 $10,000 $0 $0 $0
Intranet Ongoing $0 $0 $13,200 $13,200 $13,200
NTE Sub-Total $242,000 $34,417 $20,700 $20,700 $20,700
Running NTE Sub-Total $242,000 $276,417 $297,117 $317,817 $338,517
Additional Services Contingency $25,200 $70,800
Running Total NTE with Contingency $267,200 $347,217 $297,117 $317,817 $434,517
**Additional Services may be approved in any contract year, though shown in contract years 1 &2.
Stakeholder Engagement
OpenCities was selected though a formal RFP process. Several City department
representatives were a part of the scoring and vendor selection process.
The City’s effort to build a new website and improve its digital front door started with
community engagement, feedback meetings, and community surveys in 2018 and 2019.
The City’s new, mobile-responsive beta website was opened to the public to solicit
feedback on the design and functionality before the full website launch in Spring 2021.
The feedback survey was posted to the beta website and we received 90 responses
within the 2-week period. There is a feedback response form currently available on the
website for continued community engagement.
7
Packet Pg. 182
City of Palo Alto Page 4
Environmental Review
Approval of this agreement does not constitute a project under the California
Environmental Quality Act (CEQA); therefore, an environmental assessment is not
required.
Attachments:
• Attachment7.a: Attachment A: C19173686 Amend No. 1_OpenCities_final
7
Packet Pg. 183
Vers.: Aug. 5, 2019
Page 1 of 11
AMENDMENT NO. 1 TO CONTRACT NO. C19173686
BETWEEN THE CITY OF PALO ALTO AND OPENCITIES,INC.
This Amendment No. 1 (this “Amendment”) to Contract No.C19173686 (the “Contract” as
defined below) is entered into as of November 1, 2021, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and OPENCITIES, INC., a Delaware corporation,
located at 1885 Mission Street, San Francisco, CA 94301 (“CONSULTANT”). CITY and CONSULTANT
are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto
for the procurement of a new Content Management System (CMS) and development a new
website, as detailed therein.
B. The Parties now wish to amend the Contract in order to add to the Scope of Services
the creation of a new sub-website for the Junior Museum and Zoo (JMZ), migrate to a Consultant-
provided Intranet, add capabilities (Enterprise Open Forms) to maximize user experience, increase
the Additional Services amount by $70,800 (from $22,500 to $96,000), and increase the total not-
to-exceed amount of the Contract (including Additional Services)by $167,317, from $267,200 to a
new total not-to-exceed amount of $434,517, as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C19173686
between CONSULTANT and CITY, dated September 9, 2019.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4, “NOT TO EXCEED COMPENSATION,” of the Contract is hereby
amended to read as follows:
“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit “A” (“Scope of Services”)
and Exhibit “A-3” (“SaaS Subscription”) (which Services are also referred to collectively
herein as the “Basic Services”) shall not exceed Three Hundred Thirty-Eight Thousand Five
Hundred Seventeen Dollars ($338,517), as detailed in Exhibit “C” (“Compensation”).
CONSULTANT agrees to complete all Basic Services within this amount. Any work
performed or expenses incurred for the Basic Services which payment would result in a
7.a
Packet Pg. 184
Vers.: Aug. 5, 2019
Page 2 of 11
total exceeding the maximum amount of compensation set forth herein shall be at no cost
to the CITY.
Optional Additional Services Provision (This provision applies only if checked and
a not-to-exceed compensation amount for Additional Services is allocated below
under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside
the not-to-exceed compensation amount of Ninety-Six Thousand Dollars ($96,000)
for the performance of Additional Services (as defined below). The total
compensation for performance of the Services, Additional Services and any
reimbursable expenses specified in Exhibit C, shall not exceed Four Hundred Thirty-
Four Thousand Five Hundred Seventeen Dollars ($434,517), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary
for the proper completion of the Project, but which is not included within the Scope
of Services described at Exhibit A. CITY may elect to, but is not required to,
authorize Additional Services up to the maximum amount of compensation set forth
for Additional Services in this Section 4. CONSULTANT shall provide Additional
Services only by advanced, written authorization from CITY as detailed in this
Section. Additional Services, if any, shall be authorized by CITY with a Task Order
assigned and authorized by CITY’s Project Manager, as identified in Section 13
(Project Management). Each Task Order shall be in substantially the same form as
Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall
contain a specific scope of services, schedule of performance and maximum
compensation amount, in accordance with the provisions of this Agreement.
Compensation for Additional Services shall be specified by CITY in the Task Order,
based on whichever is lowest: the compensation structure set forth in Exhibit C, the
hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to
CITY’s Project Manager within the time specified by the Project Manager, and upon
authorization by CITY (defined as counter-signature by the CITY Project Manager),
the fully executed Task Order shall become part of this Agreement. The cumulative
total compensation to CONSULTANT for all Task Orders authorized under this
Agreement shall not exceed the amount of compensation set forth for Additional
Services in this Section 4. CONSULTANT shall only be compensated for Additional
Services performed under an authorized Task Order and only up to the maximum
amount of compensation set forth for Additional Services in this Section 4.
Performance of and payment for any Additional Services are subject to all
requirements and restrictions in this Agreement.”
SECTION 3. The following exhibit(s) to the Contract is/are hereby amended or added, as
indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby
incorporated in full into this Amendment and into the Contract by this reference:
7.a
Packet Pg. 185
Vers.: Aug. 5, 2019
Page 3 of 11
a. Exhibit “A” entitled “SCOPE OF SERVICES”, AMENDED, REPLACES PREVIOUS.
b. Exhibit “B” entitled “SCHEDULE FO PERFORMANCE”, AMENDED, REPLACES
PREVIOUS.
c. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
7.a
Packet Pg. 186
Vers.: Aug. 5, 2019
Page 4 of 11
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
OPENCITIES, INC.
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments:
EXHIBIT "A“: SCOPE OF SERVICES, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS)
EXHIBIT "B“: SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1 (AMENDED, REPLACES
PREVIOUS)
EXHIBIT "C“: COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS)
7.a
Packet Pg. 187
Vers.: Aug. 5, 2019
Page 5 of 11
EXHIBIT "A“
SCOPE OF SERVICES, AMENDMENT NO. 1
(AMENDED, REPLACES PREVIOUS)
Pursuant to this Agreement, CONSULTANT (also referred to as “OpenCities”) will provide CITY
with professional and technical website design services as detailed below in this Exhibit A. The
services include design, development, training, implementation, content migration, licensing,
hosting, maintenance, updates, security and technical support as detailed in this Exhibit A and
elsewhere in this Agreement.
Task 1: Kick-off, Research & Discovery
a. Kick off Meeting. Meet the Team for City and OpenCities, confirm timelines for the
project, schedule training sessions, walk-through process for site set up, design and
content migration, and discuss hand-offs to 3rd party applications if applicable.
Determination is made as to key site elements necessary for configuration. Discussion of
CORE and STEERING Committees for CITY. Planning for Civic User Testing groups or
other user testing mechanisms.
b. Project Management Tool. Introduction to Asana as OpenCities shared project
management environment to track progress and maintain a visual point of truth as to
the steps in the project.
c. Creative Brief/Asset Collection. CITY works with OpenCities to secure assets such as
logos and images along with any existing style guides.
d. Create/Review Analytics. CITY provides access to existing Google Analytics and any data
collection that has been ongoing, and the OpenCites team will assess current site data.
Task 2: Design Discovery and Development, Site Configuration
In this phase the OpenCities project team and the CITY will share assets and work to align and
deliver navigation, look and feel that reflects the spirit and goals of the CITY while leveraging
the best practices for effective site layout and design.
a. Configure General locality information. This data importation will allow for structured
content (such as events, places of interest, and projects) to render dynamically in
geographic context on the site.
e. Design Ideation and Creation of Creative Brief. OpenCities will facilitate an ideation
session with stakeholders (Steering Committee) to help inform statements that capture
an intention for the look and feel for the beta release of the redesigned website, and
prepare a Creative Brief summarizing these objectives and intentions. * Upon finalizing
the creative brief, this information will be provided as a style and writing guide to the
CITY.
f. Information Architecture and Governance Strategy. The OpenCites project team
will crawl the current site and map the current content in the old site for migration to
the new site. The OpenCities team will consult and advise the CITY's web management
team through a process of creating a governance plan for the website. Outcomes will
include assisting the CITY in formulating clearly assigned roles and expectations, an
7.a
Packet Pg. 188
Vers.: Aug. 5, 2019
Page 6 of 11
approved process for gathering, writing, approving and publishing new site content,
and the initial plans for each page of content (Move, Improve, and Archive).
g. Homepage & Theme Design Review. The OpenCities project team will present a first
iteration of the three design and site layout based on the assets and intentions shared in
the Design meeting. Discussion of who should be included in the design review is up to
the CITY. Inclusion of citizen engagement should be discussed and agreed prior to
finalization of the CITY contract with OpenCities. Two additional iterations will follow
for the final selected design.
h. Design Finalization. Once the design is skinned onto a live OpenCities instance, content
publishing/migration will immediately begin.
NOTE: While the configuration of the site information is based on best-practices from
OpenCities industry and Design Guidelines published by the USDigital Services, there is
ample room for the CITY to make ongoing image, layout and design changes even after
launch, using OpenCites Theme Builder capability.
Task 3: Site Admin and Content Publisher Training
In this phase, OpenCities will provide training to both the Site Administrators (two people
responsible for the site) and Content Publisher training (usually at least one person from each
department who has responsibility for maintaining the services and department pages for that
department). All training sessions will be delivered remotely via web-conferencing, but for
larger groups Open Cities will deliver training on-site in a hands-on, train the trainer or
classroom style format at City offices. OpenCites will provide five days of on-site providing
content migration work, and both sessions of training with the Palo Alto team.
a. Content Publisher Training. The OpenCities team will be on-site to lead a 2.5 hour,
hands-on, classroom style training on using the OpenCities CMS (content management
system). This session is for individuals in the CITY who manage content for their
department, generally what we call “Structured” content. The class focuses on how to
use OpenCities to create pages, publish information, manage pages and images or
documents within the CMS, create forms using OpenForms, and use the Knowledge
Bank. This includes learning various modules including news and events, minutes &
agendas, parks & facilities, job notifications, general and landing pages, directories,
media and file libraries.
b. Site Administrator Training. Typically delivered to 1-3 website managers, this 2 hour
onsite session focuses on setting up, training and managing users, as well as
using/creating roles, workflows, permissions and website settings. OpenCities will also
cover troubleshooting City’s site and accessing the online helpdesk. Content publishing
training is a pre-requisite for site manager training.
c. OpenCities Help Center/Knowledge Bank. The CITY and all staff publishing to the
website will receive access to the OpenCities Knowledge Bank and ticketing system,
which offers detailed learning materials and documentation for every OpenCities
module. Each article contains annotated images with step by step instructions showing
how to use the functions in OpenCities, and many articles also offer strategic advice to
help make the most of the functionality.
7.a
Packet Pg. 189
Vers.: Aug. 5, 2019
Page 7 of 11
d. Digital Services Academy The OpenCites project team will use a 3 day, 2.5 hour per
day facilitated workshop to train City staff on how to re-envision government web pages
and PDFs as interactive services. Participants learn how to migrate prioritized content
from the current site so that it becomes a fully functional Digital Service.
Accommodating “service owners”, the OpenCities project team will work with
participants (content publishers and departmental staff) to create a journey map of one
of their key services, identify areas for improvement, prototype a new transaction,
redesign their content, and test their new services page and digital form with a set
of actual users.
Task 4: Content/service creation, migration and curation
a. Content Creation: OpenCities encourages City departments to create or recreate their
department pages and services with support from the OpenCities and Digital
Services/Web ReDesign teams. To support the City’s goal for a next generation website,
the OpenCities team will work with City departments to ensure new content is created
and work to train users in writing for the web so that they can maintain the site in a
consistent way.
b. Content Migration. OpenCities will migrate all content, making sure the pages transfer
to the OpenCities CMS appropriately. The migration process does not include the
creation, editing or enhancement of the content. OpenCities will assist City Staff with
expertise and suggestions for changes when migrating content to the new website.
Task 5: Launch, Testing and Iteration
a. Launch: OpenCities will coordinate the full launch of the site with the City’s team to
assure a smooth transition from the old to the new site, including Domain Name System
(“DNS”) transfer.
b. Civic User Testing: OpenCities will provide coaching and feedback on strategies for user
testing, including using volunteers for person-to-person user testing in a community,
using positive survey respondents for remote testing of new pages, or regular use of
surveys for general and specific feedback.
c. Iteration: OpenCites will provide quarterly updates and feature enhancements,
continuous support and community forums, as well as a twice annual site review and
recommendation session.
Task 6: Licensing & Hosting (Annual SaaS Subscription Services, per Exhibit “A-3”)
This section is further detailed in Exhibit “A-3” and includes:
a) Website Content Management Software Licensing
b) Website Hosting environment & Services
Task 7: Ongoing Technical Support (Annual SaaS Subscription Services, per Exhibit “A-3”)
This section is further detailed in Exhibit “A-3” and includes:
a) Ongoing technical support services
7.a
Packet Pg. 190
Vers.: Aug. 5, 2019
Page 8 of 11
Task 8: Creation of New Sub-Website (Subsite) for City’s Junior Museum and Zoo (JMZ)
a. OpenCities to create a new sub-website (subsite) for the City’s Junior Museum and Zoo
(JMZ). OpenCities will host the new subsite along with design, development and training
services for staff, and provide ongoing maintenance and support as part of its existing
hosting, maintenance and support of the City’s website as detailed in this Agreement, at
no additional cost to the City.
Task 9: Migration of City’s Intranet to OpenCities Intranet
a. OpenCities will assist the City with evaluating the migration of its current City Intranet to
OpenCities Intranet. The current intranet platform is being retired by the vendor and
will not be supported at the end of 2021. The Intranet has not been updated for 8 years
and does not provide the platform that staff needs to be able to communicate
information efficiently.
Task 10: Add Capabilities (e.g. Enterprise Open Forms) to Maximize User Experience
a. OpenCities will assist the City with adding capabilities to maximize the user experience,
such as adding Enterprise Open Forms to replace PDF forms.
Additional Services
Any Additional Services to be provided must be approved by City pursuant to a Task Order as
detailed in Section 4 (Not to Exceed Compensation) of this Agreement. Examples of Additional
Services that may be sought include but are not limited to further functionality that may be
requested by City departments such as the integration with 3rd party tools being used by
departments and other community collaboration modules offered by Open Cities.
CITY’S REQUIREMENTS
1. OpenCities shall offer Network Layer IP filtering solution for administrative access to the
City of Palo Alto’s Open Cities instance. Access will be allowed only from the City of Palo
Alto’s IP address and the OpenCities IP addresses.
2. Any data transfer between the City of Palo Alto and the OpenCities's environment shall
securely be transferred/processed through HTTPS/SFTP/FTPS/VPN communication.
3. The City of Palo Alto data hosted at rest and the backup stage within the OpenCities
environment (including OpenCities’s contracting organizations environment) shall be
encrypted securely.
4. The OpenCities shall provide robust disaster recovery and business continuity solutions
to the City of Palo Alto for the systems and services provided under this Agreement.
5. OpenCities shall provide all services under this Agreement in accordance with Exhibit
“E,” entitled “INFORMATION PRIVACY POLICY,” and Exhibit “F,” entitled VENDOR CYBER
SECURITY TERMS AND CONDITIONS.”
7.a
Packet Pg. 191
Vers.: Aug. 5, 2019
Page 9 of 11
EXHIBIT "B“
SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1
(AMENDED, REPLACES PREVIOUS)
Completion Dates
Tasks Milestones Original JMZ
Amendment 1
Intranet
Amendment 1
1. Kick Off, Research & Discovery Oct 31, 2019 Jul 2021 Q4 FY2022
2. Design, Development & Configuration Nov 1 – Jan
31, 2020
Aug – Oct
2021
Q1 – Q2
FY2023
3. Site Admin & Content Publisher Training Feb 28, 2020 Oct 2021 Q2 FY2023
4. Content/Service creation migration & curation Mar 1 – May
31, 2020
Oct – Dec
2021
Q3 FY2023
5. Launch, Testing and Iteration Jun 1 – Jul 31,
2020
Dec 2021 Q4 FY2023
6. Licensing & Hosting * Commencing
as of Live
Operation
Commencing
as of Live
Operation
Commencing
as of Live
Operation
7. Ongoing Technical Support * Commencing
as of Live
Operation
Commencing
as of Live
Operation
Commencing
as of Live
Operation
* (Annual Subscription Services per Exhibit “A-3” for 5 years as further detailed in Exhibit “C”)
Live Operation.
The initial subscription period for Licensing & Hosting and Ongoing Technical Support (Tasks 6 and 7,
respectively) shall run on a yearly basis for a period of 5 years, commencing on the Live Operation date
for the Subscription Services per Exhibit “A-3” and as further detailed in Exhibit “C”. The Live Operation
date for the Subscription Services is defined as the date on which the City signs off on successful
implementation which comprises of the instance built / designed and ready to have content migrated,
provided that the City’s project manager has expressly accepted the Live Operation date in writing.
Schedule of Performance for Additional Services. (This provision only applies if checked and
only applies to agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in
Section 4 in the case of Additional Services, provided in all cases that the schedule of performance
shall fall within the term as provided in Section 2 (Term) of this Agreement.
7.a
Packet Pg. 192
Vers.: Aug. 5, 2019
Page 10 of 11
EXHIBIT "C“
COMPENSATION, AMENDMENT NO. 1
(AMENDED, REPLACES PREVIOUS)
The CITY agrees to compensate the CONSULTANT for professional services performed in
accordance with the terms and conditions of this Agreement, and as set forth in the budget
schedule below.
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 any
reimbursable expenses specified below, and the total compensation for Additional Services do not
exceed the amounts set forth in Section 4 of this Agreement.
(The BUDGET SCHEDULE is provided on the next page.)
7.a
Packet Pg. 193
Vers.: Aug. 5, 2019
Page 11 of 11
BUDGET SCHEDULE AND NOT-TO-EXCEED AMOUNTS
Task Year 1 Year 2 Year 3 Year 4 Year 5 Subtotals
1. Kick Off,
Research &
Discovery
$25,000 -- -- -- -- $25,000
2. Design,
Development &
Configuration
$30,000 -- -- -- -- $30,000
3. Site Admin &
Content
Publisher
Training
$0 -- -- -- -- $0
4. Content/
Service creation
migration &
curation
$42,000 -- -- -- -- $42,000
5. Launch,
Testing and
Iteration
$0 -- -- -- -- $0
6. Licensing &
Hosting *
$29,000 $29,000 $29,000 $29,000 $29,000 $145,000
7. Ongoing
Technical
Support *
$0
(included in
Task 6)
$0
(included
in Task 6)
$0
(included
in Task 6)
$0
(included
in Task 6)
$0
(included in
Task 6)
$0
8. Create New
Subsite for Junior
Museum & Zoo
-- $31,917 -- -- -- $31,917
9. Migrate City
Intranet to
OpenCities
Intranet
-- $49,600 -- -- -- $49,600
10. Add
Capabilities
(Enterprise Open
Forms) to Max.
User Experience
-- $15,000 -- -- -- $15,000
Add’l Sv** $96,000** -- -- -- -- $96,000**
Subtotals $222,000 $125,517 $29,000 $29,000 $29,000 $434,517
Total not-to-exceed Amount of the Agreement $434,517
* (Annual Subscription Services per Exhibit “A-3” for 5 years as further detailed in Exhibit “C”)
**Additional Services (per Section 4) may be approved in any contract year, though shown in year 1
Live Operation.
The initial subscription period for Licensing & Hosting and Ongoing Technical Support (Tasks 6 and 7,
respectively) shall run on a yearly basis for a period of 5 years, commencing on the Live Operation date
for the Subscription Services per Exhibit “A-3” and as further detailed in Exhibit “C”. The Live Operation
date for the Subscription Services is defined as the date on which the City signs off on successful
implementation which comprises of the instance built / designed and ready to have content migrated,
provided that the City’s project manager has expressly accepted the Live Operation date in writing.
7.a
Packet Pg. 194
City of Palo Alto (ID # 13430)
City Council Staff Report
Meeting Date: 12/6/2021
City of Palo Alto Page 1
Title: Approval of a Purchase Order with Interstate Truck Center d/b/a Valley
Peterbilt in an Amount Not-to-Exceed $391,002 for the Purchase of a 2023
Peterbilt 537 with an American Truck and Trailer Body Service Body, Utilizing
a Sourcewell Cooperative Pu rchase Agreement; and Approval of a Fiscal Year
2022 Budget Amendments in the Vehicle Replacement and Maintenance
Fund Scheduled Vehicle and Equipment Replacement Capital Project (VR -
22000) and the Gas Fund
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1. Approve and authorize the City Manager or their designee to execute a purchase
order with Interstate Truck Center d/b/a/ Valley Peterbilt in the amount of $391,002
for the purchase of a 2023 Peterbilt 537 Extended Cab Chassis with American Truck
and Trailer Body Maintenance, Construction Service Body, utilizing cooperative
purchase agreement number 060920 between Peterbilt Motors Company and
Sourcewell, a government agency and service cooperative that offers cooperative
procurement solutions to government entities; and
2. Amend the Fiscal Year 2022 Budget Appropriation (by a 2/3 vote) for
a. the Gas Fund by:
i. Increasing the transfer to the Vehicle Replacement and Maintenance Fund
in the amount of $191,002; and
ii. Decreasing the Ending Fund Balance in the amount of $1 91,002; and
b. the Vehicle Replacement and Maintenance Fund by:
i. Increasing the transfer from the Gas Fund by $191,002; and
ii. Increasing the Scheduled Vehicle and Equipment Replacement Fiscal Year
2022 project (VR-22000) in the amount of $191,002.
Background
The Vehicle and Equipment Use, Maintenance, and Replacement policy section 4-1 provides for
the ongoing replacement of City fleet vehicles and equipment. Replacements are scheduled
8
Packet Pg. 195
City of Palo Alto Page 2
using guidelines based on age, mileage accumulation, and obsolescence. Policy 4-1 prescribes a
replacement interval for trucks with diesel engines of ten (10) years or 100,000 miles.
Unit 8792 is a 2007 Freightliner M2 106 with a utility body, operated by Utilities Water, Gas,
Wastewater (WGW), and is over 14 years old with over 32,000 miles. The engine has total run
hours of 5,409 which is equivalent to approximately 324,540 miles. Lifetime maintenance and
operation costs have exceeded $248,000. This vehicle was approved for replacement in the
Fiscal Year 2022 capital budget in the Scheduled Vehicle and Equipment Replacement Fiscal
Year 2022 capital project (VR-22000).
The City’s fleet currently includes four utility service trucks for WGW (units 8792, 8731, 8723,
and 8212). In 2007, unit 8792 was upgraded from its smaller Ford chassis to its current
Freightliner chassis, and in 2017, the three other trucks were replaced and upgraded from the
Chevrolet/GMC utility body to the larger Peterbilt 337 chassis. These larger trucks have proven
more efficient for the work group, as the previous trucks were undersized and not equipped to
carry the loads associated with the necessary utility tools and equipment each crew needs for
field work. Additionally, the smaller trucks did not have adequate towing capacity for some of
the larger specialized trailers.
Discussion
Replacing unit 8792 with a Peterbilt 537 chassis (the 337 model was replaced by the 537 model)
and matching service body, as equipped on the three corresponding trucks, aligns with the
City’s vehicle and equipment standardization guidelines pertaining to heavy duty service trucks
within WGW. Maintenance costs will be reduced by not having to procure specialized
equipment and software for two different make/model trucks. Also, Fleet has found that the
servicability of the Peterbilt, both during and outside of its warranty period, provides much less
downtime to the user department than the Freightliner chassis. This is due to Peterbilt ’s better
parts accessibility and closer dealer location. The fully outfitted Peterbilt trucks are equipped to
eliminate inefficiencies, and are the industry standard for underground utility work.
Procurement Process
Palo Alto Municipal Code section 2.30.360(j) authorizes the use of Intergovernmental
Cooperative Purchasing agreements in lieu of conducting a competitive solicitation. A quote
from Interstate Truck Center d/b/a/ Valley Peterbilt was obtained through Sourcewell on
October 12, 2021, utilizing cooperative purchase agreement number 060920 between Peterbilt
Motors Company and Sourcewell, a government agency and service cooperative that offers
cooperative procurement solutions to government entities. The quote from Interstate Truck
Center d/b/a Valley Peterbilt (Sourcewell Contract Quote) for the Peterbilt truck came in at
$391,001. The Peterbilt Motors Company – Sourcewell cooperative purchasing contract is valid
through August 1, 2024 (Sourcewell Contract).
If this request is not approved, we will no longer have the option of purchasing this 2023 model
Peterbilt chassis. Staff would have to request a new specification for a 2024, or later year
8
Packet Pg. 196
City of Palo Alto Page 3
model and return to Council for approval. This would further increase the cost and delay the
delivery of this new vehicle. Staff recommends that Council approve this agreement (PO
4522000178) with Interstate Truck Center d/b/a/ Valley Peterbilt for the purchase of one new
2023 Peterbilt 537 Extended Cab Chassis with American Truck and Trailer Body Maintenance,
Construction Service Body.
Resource Impact
The Vehicle Replacement Fund does not have sufficient funding to purchase this vehicle.
Traditionally, vehicle procurements are pre-funded through annual charges to the
department/fund that benefits from the vehicle. In this instance, $200,000 was allocated for
the replacement of this vehicle in the Fiscal Year 2022 bu dget for VR-22000. There were two
components to this existing build, the chassis and the body. Unfortunately, the amount
collected for replacement was not escalated off of the full original purchase price. The chassis,
which made up over 33% of the original cost, was not included. Further, there have been
increased costs associated with things such as materials and components for this build,
regulatory requirements mandating that the manufacturers offer a longer emissions warranty,
and a global supply chain surcharge. To support this purchase, an appropriation of $191,002 to
the Scheduled Vehicle and Equipment Replacement Fiscal Year 2022 CIP project (VR-22000) in
the Vehicle Replacement and Maintenance Fund, offset by a transfer of $191,002 from the Gas
Fund, is recommended.
Stakeholder Engagement
Requests for vehicle replacements are presented to the Fleet Review Committee (FRC) for
approval. FRC approved the replacement of this vehicle through the scheduled five -year
replacement review. Fleet staff also worked with Utilities WGW staff in order to communicate
the additional funnding need from the Gas Fund for this replacement.
Policy Implications
Authorization of the contract does not represent any change to existing polic ies.
Environmental Review
The vehicle being supplied is in conformance with all applicable emissions laws and regulations.
Accordingly, this purchase is exempt from the California Environmental Quality Act under CEQA
guidelines (Section 15061).
8
Packet Pg. 197
City of Palo Alto (ID # 13653)
City Council Staff Report
Meeting Date: 12/6/2021
City of Palo Alto Page 1
Title: Adoption of Interim Urgency Ordinance Amending Titles 18 and 21 in
Response to Senate Bill 9; Adoption of an Interim Ordinance Amending Titles
18 and 21 in Response to Senate Bills 9 and 478; Adoption of Objective
Design Standards for SB 9 Projects; and Referral of Work on a Permanent
Ordinance to the Planning and Transportation Commission and the
Architectural Review Board. (6:50 - 8:30 PM)
From: City Manager
Lead Department: Planning and Development Services
Recommendation
Staff recommend Council hold a hearing and:
1.Adopt the attached interim urgency ordinance (Attachment A) to immediately integrate
Senate Bill 9 into the Palo Alto Municipal Code and, by reference, adopt objective design
standards (Attachment C) for qualifying SB 9 projects;
2.Adopt the attached interim ordinance (Attachment B) containing the same content
regarding Senate Bill 9 and further implementing Senate Bill 478; and
3.Refer work on a permanent ordinance to the Planning and Transportation Commission
(PTC) and Architectural Review Board (ARB) work plans for 2022.
Executive Summary
The above recommendation and supporting report aim to maintain Palo Alto’s local control of
planning and development decisions while complying with recently enacted state laws. The
Background section reviews new state laws, providing summaries of the laws and their impacts
on Palo Alto. Table 1 identifies how the newest state laws and existing state laws work together
to impact development standards and approval processes for single family homes (one an d two
story), accessory dwelling units, and duplexes in Palo Alto.
The Discussion section describes how the City of Palo Alto might balance adhering to state law
while asserting local aesthetic design preferences and preservation of neighborhood characte r.
This includes responses to SB 9, as well as responses to SB 478.
The Discussion section also describes the need to address a gap in the Palo Alto Municipal Code
created by the adoption of the City’s deconstruction ordinance. Closing this gap will promote
9
Packet Pg. 198
City of Palo Alto Page 2
the no net loss policies in state law, ensuring that we do not lose existing housing units to
demolition or deconstruction. The final sections review policy implications of the proposed and
future ordinances.
Staff propose an interim urgency ordinance so that the law can take effect immediately. This
ensures that on January 1, 2022, the ordinance is in place and can guide applications for the
relevant projects. Staff have also prepared an interim ordinance, that is not proposed to be
adopted on an urgency basis. This ordinance requires two readings and becomes effective on
the 31st day following the second reading. The interim urgency ordinance, however, requires a
2/3 majority of Council members support, while the interim ordinance may be adopted by a
simple majority. In addition, the interim ordinance provides redundancy should the urgency
findings be challenged in court and the legal proceedings delay or stay implementation of the
urgency ordinance.
Background
New State Laws Impacting Local Planning & Development
Over the past several legislative sessions, the state legislature has approved and both
Governors Brown and Newsom have signed laws altering housing policy in California. While
several bills in the most recent legislative session are acutely impactful to local governments (SB
8, SB 9, SB 10, and SB 478), these laws build on prior legislation. Together, these laws create a
complex regulatory web aimed at increasing housing production in the state in order to meet
the housing needs of the state’s current and future residents.
This web impacts local governments significantly. Among other things, this web constrains Palo
Alto’s ability to implement subjective design standards, prescribes processing timelines,
indicates certain projects are ministerial, and provides some development standards for certain
projects. Further, the web of policies works together to limit a local government’s ability to
deny certain types of housing projects.
Of the laws from the most recent legislative session, SB 8, SB 9, and SB 478 are the focus of this
report. These laws are effective on January 1, 2022. To prepare for the impacts in Palo Alto,
staff recommend that City Council adopt an interim urgency ordinance to ensure that the City
can limit negative impacts the laws may have on development and neighborhoods in Palo Alto.
Staff recommend that Council direct staff to continue working throughout 2022 on a
permanent ordinance that maximizes protection for Palo Alto neighborhoods while complying
with state laws. Due to the incredibly short time frame from passage of the laws to their
effective date, staff lacked sufficient time to benefit from community input and
recommendations of the ARB and PTC. Staff recommend adding this effort to the 2022 Work
Plans for both the ARB and PTC.
9
Packet Pg. 199
City of Palo Alto Page 3
Due to the complexity of the housing policy web, staff have prepared a table that indicates how
the laws impact local development of single-family homes, duplexes, and lot splits. The left side
describes what is currently allowed for these types of projects today in 2021. The right side
shows what will be allowed on January 1, 2022.
Following the table, the report summarizes SB 8, SB 9, and SB 478, which are new laws (further
detailed in Attachment E). Existing laws, such as the Housing Accountability Act (SB 167) and
the Housing Crisis Act of 2019 (SB 330), continue to impact local planning and development for
housing projects. The impacts of these laws are integrated into Table 1. Please note, the focus
of this report and Table are the impacts of state law on small scale housing, namely single-
family homes, duplexes, and single-family homes and/or duplexes with accessory dwelling units
(ADUs).
Table 1: Comparison of Current Local Laws & Development Practices to Future Practices Under
State Law
The Way It Is Now (2021) The Way It Will Be (2022)
(1) Single-story, Single-family Home in R-1 or RE Zones
Building permit application submitted to the City
and reviewed by staff. Reviewed by planning for
adherence to zoning development standards in the
code.
If a project seeks a variance or home improvement
exception, then a discretionary planning
application must be approved before the building
permit application can be reviewed/approved.
ADU/JADU
See Project 3 below.
Single unit housing development does not qualify
for SB 9. See Project 3 (below) for SB 9 eligible
projects.
The current process (The Way It Is Now) can
continue.
Property owner can “freeze” zoning rules with a
pre-application.
Limit of 5 hearings, including appeal hearings.
Single unit homes are subject to local objective
standards and to subjective standards adopted
before January 2020.
Building permit for replacement home must be
reviewed and approved prior to complete
demolition via deconstruction.
9
Packet Pg. 200
City of Palo Alto Page 4
ADU/JADU
See Project 3 below.
(2) Two-story, Single-family Home in R-1 or RE Zones
Two story homes must go through the “Individual
Review” process (IR process). Proposed two-story
homes must comply with the Individual Review
Guidelines (IR Guidelines) as well as zoning
development standards.
The IR process and guidelines help to shape the
architecture, privacy, streetscape, and massing of
the home and its relationship to neighboring
properties. This process results in conditions of
approval for the proposed home. For example,
landscape screening and opaque windows on the
upper floor to enhance privacy.
Since the IR process is a discretionary review, the
demolition of listed historic and eligible resources
is considered an impact under CEQA that must be
evaluated.
ADU/JADU
See Project 3 below.
Single unit housing development does not qualify
for SB 9. See Project 3 for SB 9 eligible projects.
IR Program continues to apply to two-story homes.
Property owner can “freeze” zoning rules with a
pre-application.
Limit of 5 hearings, including appeal hearings.
ADU/JADU
See Project 3 below.
(3) Single-family home (one or two story) in R-1 or RE Zones with an ADU and/or JADU
Qualifies as a “housing development project”
under the Housing Accountability Act (SB 330)
because the project is more than one unit.
The two-story primary home goes through the IR
process and is subject to the IR Guidelines. The
City cannot deny the project based on subjective
criteria. The City can condition approval of the
project based on subjective criteria, provided the
conditions of approval do not violate state law and
provide sufficient direction to be implemented.
New subjective standards cannot be added to the
IR Guidelines. No new subjective standards after
Jan. 1, 2020.
Limited to 5 hearings, including appeal hearings.
SB 9 Qualifying Projects
A one- or two-story single-family home with an
ADU, a JADU, or an attached JADU and detached
ADU may be subject to SB 9.
The project must meet other SB 9 requirements for
eligibility.
If eligible for SB 9, the project is subject only to
adopted objective design standards. In this case,
both the primary home and ADU and/or JADU are
ministerial review and approval only.
If the applicant seeks to exceed the objective
design standards, the project can elect to go
through the IR process
9
Packet Pg. 201
City of Palo Alto Page 5
If combined with an ADU, the Housing
Accountability Act (SB 330) applies. In that case,
the City cannot deny the project based on
subjective criteria. The City can condition the
approval of the project to effectuate subjective
standards.
ADU/JADU
1 detached ADU and 1 JADU allowed. Or 1
attached ADU or 1 JADU.
The ADU and/or JADU must be ministerially
approved
All Other Single Family Homes w/ADU and/or
JADU
The project’s two-story primary home is subject to
the IR process.
A property owner could assert the right to
ministerial review of the primary home, when
combined with an ADU, under SB 9.
The ADU and/or JADU portion is subject to
ministerial review and approval only
(4) Duplex in R-2 Zone
Building permit application submitted to the City
and reviewed by staff. Reviewed for adherence to
zoning development standards in the code.
If a project seeks a variance or home improvement
exception, then a discretionary planning
application must be approved before the building
permit application can be reviewed.
The IR process applies when the duplex is located
next to a single-family home.
No new subjective standards allowed.
ADU/JADU
Up to 2 detached ADUs allowed
No changes; see left column.
SB 9 does not apply to R2 zoned properties
(5) Duplex on RE or R-1
A duplex is not allowed in these zones.
ADU/JADU
While a duplex is not allowed on a R-1 or RE
parcel, ADU/JADUs are allowed as follows: 1
detached ADU and 1 JADU allowed. Or 1 attached
ADU or 1 JADU.
ADU ministerially approved
Qualifying SB 9 Projects
For qualifying parcels and projects (must meet all
SB 9 criteria) 2 units are allowed.
The units are subject to objective zoning
development standards and objective design
standards.
The application, review, and approval are
ministerial.
In the absence of a lot split, the owner can also add
up to 2 detached ADUs. Under this scenario, the
duplex, under SB 9, would be constructed first.
Subsequently, up to 2 detached ADUs could be
constructed (following application, review and
9
Packet Pg. 202
City of Palo Alto Page 6
ministerial approval). Any future lot split would
need to result in no more than 2 units on either
resulting lot.
Other Duplexes in the R-1 or RE
SB 9 is the only path for a “duplex” in the R-1 or RE
zones.
(6) Lot Split in R-1 or RE Zones
Standard Subdivision Process (Parcel Map) for Lot
Split
Minimum lot size in the R-1 is 6,000 sf, 60 ft wide
and 100 ft deep. In the RE the minimum lot size is
1 acre (43,560 sf) and must be 100 ft min width
and 100 ft min depth.
In order to subdivide, each resulting lot must meet
the minimums (above), and also be no larger than
9,999 sf.
Subdivision is a two-step process. First, the
applicant applies for a Preliminary Parcel Map,
which goes to a Director’s Hearing. Second, the
applicant applies for a Parcel Map which is
reviewed by Staff, and when complete, is signed
by the City Surveyor (contract), Director of PDS,
and Director of Public Works Engineering. The map
is then recorded with the County of Santa Clara
and a copy is returned to the City.
A lot split is creating two full parcels. This is
different from a condo subdivision, which allows
for example, two duplex units on the same lot to
be sold to separate owners and establish common
shared spaces and privately owned spaces.
Parcel map with exceptions
A parcel map with exceptions can allow for the
creation of parcels that do not meet the standard
size requirements. A parcel map with exceptions
requires both PTC and Council approval.
ADU/JADU
ADU and/or JADU are allowed on resulting lots.
Qualifying SB 9 Projects
SB 9 creates a new path for lot splits available to
qualifying properties.
The “initial” lot, before being split, must be at least
2,400 square feet.
The lot can be split evenly or the lot can have a
60/40 split. Minimum lot size for a resulting lot is
1,200 square feet.
The City can require that the resulting lots have
street frontage or access through an easement. The
recommended ordinance requires minimum access
to the street for flag lots.
Staff recommend exploring additional lot design
standards for a permanent ordinance.
The City can state lots split under SB 9 are not
eligible for more than 2 units per lot. This is
reflected in the ordinance.
Other Lots Splits
The existing paths remain available; see left
column.
Some parcels will not qualify for the “urban lot
split” under SB 9.
The underlying zoning of the resulting lots would be
R-1 or RE, which allows a primary home with
J/ADU(s).
9
Packet Pg. 203
City of Palo Alto Page 7
ADU’s and/or JADU’s cannot be subdivided from
primary residences by lot split or condo
subdivision. Although state law does allow ADUs to
be sold separately if the ADUs will be owned by a
non-profit organization.
Listed Historic Resource
In most cases, a flag lot cannot be created in the R-
1.
If there is a historic resource the Subdivision
Incentive for Historic Preservation applies. In this
instance, if there are 2 homes on a lot, and one
home is historic, then a flag lot can be created to
further the preservation of the historic resource. A
covenant is placed on the historic home.
Listed Historic Resource
The Way It Is Now
Proposals to demolish an existing home and build a one-story home are not discretionary.
Historic resources are not protected and do not require discretionary approval.
The proposed demolition of a listed category 1 or 2 resource or a listed category 1 - 4 property
in Professorville and Downtown to be replaced by a two-story home, requires discretionary
approval and California Environmental Quality Act (CEQA) review.
The Palo Alto Comprehensive Plan states a proposal to demolish a home must be preceded by a
historic resource evaluation to determine eligibility for the California Register of Historical
Resources (CRHR). If a home is eligible to be listed—but not listed—and a two-story home or
other discretionary approval is requested, then CEQA review may apply.
Through the performance of historic resource evaluations, the City identifies more eligible
historic resources. The list of eligible resources are sent yearly to the State of California.
The Way It Will Be
By limiting and in some cases prohibiting the IR process and/or discretionary approval, the City
will have fewer opportunities to identify eligible historic resources. Homes may be demolished
without evaluations. This issue will be revisited and further researched during development of a
permanent ordinance.
Review of SBs 8, 9, 10, and 478
9
Packet Pg. 204
City of Palo Alto Page 8
The remainder of this section details the specific laws passed in the 2021 legislative session; SBs
8, 9, 10, and 478.
SB 8 (Skinner) Housing Crisis Act of 2019
Existing law, the Housing Crisis Act of 2019 (HCA), requires a housing development project be
subject only to the ordinances, policies, and standards adopted and in effect when a
preliminary application is submitted, except as specified. The act defines “housing development
project” to mean a use consisting of residential units only, mixed -use developments consisting
of residential and nonresidential uses with at least 2/3 of the square footage designated for
residential use, and transitional or supportive housing.
Notable changes by the law, signed by Governor Newsom:
• Extends the sunset of the HCA by five years to January 1, 2030.
• Expands on the definition of “housing development project” for the purposes of the HCA to
include both discretionary and ministerial projects. SB 8 also applies the HCA to the
construction of single dwelling units. Therefore, single dwelling units may submit pre-
applications to freeze zoning laws, may be subject to the no -net-loss provision of the HCA,
and may be limited to five total hearings.
• Clarifies that appeals and public meetings related to density bonus projects are counted for
the purposes of the five-hearing limit in the HCA.
This law clarifies the HCA and staff will continue to process applications in accordance with the
State law. No local ordinance is necessary for implementation.
SB 9 (Atkins) Housing Development
Senate Bill 9 adds Government Code Sections 65851.21 and 66411.7 and amends Government
Code Section 66452.6 (Subdivision Map Act). The provisions of SB 9 are effective beginning
January 1, 2022. Below is a summary of those provisions. Attachment D provides an infographic
representation of SB 9.
This new law applies to single-family zoned parcels and includes two primary by-right
provisions. One provision allows for a lot split of parcels that are at least 2,400 square feet in
area. The other provision allows construction of up to two units on each parcel in a single-
family zone. A lot split followed by a two-unit project on each of the new lots could result in
four total dwellings on what was formerly one single-family residential lot. More details are
provided below.
Government Code Section 65851.21 – Ministerial Two-Unit Developments
Under SB 9, local agencies must approve in a ministerial process, without any discretionary
review or hearing, certain two-unit developments. Two-unit developments are those that
propose either the construction of no more than two new units, or the addition of one new unit
to an existing unit. Please note that under state law the developments can also include up to
9
Packet Pg. 205
City of Palo Alto Page 9
two detached accessory dwelling units; this totals up to 4 units on a lot. Cit y staff interpret this
to exclude the construction of a single dwelling unit on a lot.
To qualify for this ministerial process, the two-unit development must be proposed in a single-
family residential zone, which in Palo Alto are the R-1 and RE zones. Other requirements that a
project must satisfy to qualify for SB 9's benefits include:
• Location. The project must be in an urbanized area or urban cluster, or within a city with
boundaries in an urbanized area or urban cluster, as those terms are defined by t he U.S.
Census Bureau. The project cannot be on a site designated as a local or state historic
landmark or within a local or state historic district. The project may not be on prime
agricultural land, wetlands, or protected species habitat, but may be in a high or very
high fire severity hazard zone, earthquake fault zone, floodplain, floodway, and site with
hazardous materials so long as certain mitigation measures (as outlined in Government
Code Section 65913.4(a)(6)) have been implemented on those sites.
• Protected Units. The two-unit development may not result in the demolition or
alteration of affordable housing, rent-controlled housing, housing that was withdrawn
from the rental market in the last 15 years, or housing occupied by a tenant in the past 3
years.
• Limit on Demolition. The project may not demolish more than 25 percent of the
exterior walls of an existing unit unless either the local agency permits otherwise or the
site has not been occupied by a tenant in the last 3 years. In the absence of local
authorization, this limitation is duplicative of the restriction on alteration of housing
recently occupied by a tenant.
• Short term rentals. Any units constructed via SB 9 cannot be used for short-term rentals
of less than 30 days.
A project that meets these criteria and otherwise qualifies for the SB 9's ministerial process is
exempt from the provisions of the California Environmental Quality Act, as is an ordinance
implementing these provisions. However, the provisions of the California Coastal Act o f 1976
are applicable to SB 9 two-unit developments, except that a local agency is not required to hold
a public hearing for coastal development permit applications.
SB 9 provides narrow parameters for local agencies regarding the standards which they may
apply to qualifying two-unit developments and the circumstances under which they may reject
an otherwise qualifying two-unit development. As a general matter, a local agency may impose
objective zoning standards, objective subdivision standards, and objective design review
standards, so long as those standards do not conflict with the limitations imposed by SB 9 and
would not physically preclude the construction of up to two units of at least 800 square feet
each.
It’s important to note that while the City’s standards cannot preclude the construction of up
two units that are 800 square feet each, staff do not interpret this to mean that SB 9 projects
can be limited to only 800 square feet each. Under California Government Code Section
66300(b), local governments are prohibited from:
9
Packet Pg. 206
City of Palo Alto Page 10
“(A) Changing the general plan land use designation, specific plan land use designation,
or zoning of a parcel or parcels of property to a less intensive use or reducing the
intensity of land use within an existing general plan land use designation, specific plan
land use designation, or zoning district below what was allowed under the land use
designation and zoning ordinances of the affected county or affected city, as applicable,
as in effect on January 1, 2018, except as otherwise provided in clause (ii) of
subparagraph (B). For purposes of this subparagraph, “less intensive use” includes, but
is not limited to, reductions to height, density, or floor area ratio, new or increased open
space or lot size requirements, or new or increased setback requirements, minimum
frontage requirements, or maximum lot coverage limitations, or anything that would
lessen the intensity of housing." 1
Reducing the allowable lot coverage and square footage in the R1 or RE zones could be
characterized as reductions in intensity of land use. Based on this, the recommended ordinance
does not limit the size of SB 9 projects beyond the City’s current lot coverage, height, and other
objective zoning standards. There is one exception: Circumstances wher e SB 9 would authorize
a greater number of units than were permitted on January 1, 2018. In these circumstances –
three or four detached units on what was formerly a single-family zone lot – staff believe
square footage can be limited and the proposed ordinance does so.
Other limitations in SB 9 include:
• Setbacks. A local agency may not require rear and side yard setbacks of more than four
feet. No setback may be required for a unit constructed (1) within an existing living area,
or (2) in the same location and to the same dimensions as an existing structure.
• Parking Requirements. A local agency may only require one off-street parking space per
unit. No parking requirements may be imposed if the parcel is located within (1) one -
half mile walking distance of either a statutorily defined high-quality transit corridor or
major transit stop, or (2) one block of a car share vehicle. In Palo Alto, 600 feet equals
one block.
• Adjacent or Connected Structures. A local agency may not deny an application for a
two-unit development solely because it proposes adjacent or connected structures, as
long as the structures meet building code safety standards and are sufficient to allow
separate conveyance.
1 SB-8, which goes into effect on January 1st 2022, further clarifies this language with the following amendments:
“(A) Changing the general plan land use designation, specific plan land use designation, or zoning of a parcel or
parcels of property to a less intensive use or reducing the intensity of land us e within an existing general plan land
use designation, specific plan land use designation, or zoning district in effect at the time of the proposed
change, below what was allowed under the land use designation and or zoning ordinances of the affected county
or affected city, as applicable, as in effect on January 1, 2018, except as otherwise provided in clause (ii) of
subparagraph (B). (B) or subdivision (i).”
9
Packet Pg. 207
City of Palo Alto Page 11
• Number of units, ADUs/JADUs. A local government is not required to allow an ADU or
JADU on a parcel that uses both the two-unit law and the urban lot split. A property
owner is still entitled to construct ADUs on a parcel that has not been split under SB 9.
• Percolation Test. For residential units connected to an onsite wastewater treatment
system, the local agency may require a percolation test completed within the last 5
years, or if the percolation test has been recertified, within the last ten years.
SB 9 provides that a local agency may deny an otherwise qualifying two -unit development if the
local building official makes a written finding, based on a preponderance of the evidence, that
the proposed housing development project would have a specific, adverse impact upon public
health and safety or the physical environment, and there is no feasible method by which to
satisfactorily mitigate the adverse impact.
Government Code Section 66411.7 – Ministerial Urban Lot Splits
Under SB 9, local agencies must also ministerially approve, without discretionary review or
hearing, certain urban lot splits. To qualify for ministerial approval under SB 9, the parcel to be
split must be in a single-family residential zone, which in Palo Alto are the R1 and RE zones. The
parcel map for the urban lot split must meet the following requirements:
• Location. The project must be in an urbanized area or urban cluster, or within a city with
boundaries in an urbanized area or urban cluster, as those terms are defined by the U.S.
Census Bureau. The project cannot be on the site of a designated local or state historic
landmark or within a local or state historic district. The project may not be on prime
agricultural land, wetlands, or protected species habitat, but may be in a high or very
high fire severity hazard zone, earthquake fault zone, floodpla in, floodway, and site with
hazardous materials so long as certain mitigation measures (as outlined in Government
Code Section 65913.4(a)(6)) have been implemented on those sites.
• Parcel Size. The parcel map must subdivide an existing parcel to create no more than
two new parcels of approximately equal lot area, with neither resulting parcel exceeding
60 percent of the lot area of the original parcel. Additionally, both newly created parcels
must be at least 1,200 square feet (unless the local agency adopt s a smaller lot size).
• No Prior SB 9 Lot Split. The parcel to be split may not have been established through a
prior SB 9 lot split. Neither the owner nor anyone acting in concert with the owner may
have previously subdivided an adjacent parcel using an SB 9 lot split.
• Subdivision Map Requirements. The urban lot split must conform to all applicable
objective requirements of the Subdivision Map Act, except those that conflict with SB 9
requirements.
• Protected Units. The urban lot split may not result in the demolition or alteration of
affordable housing, rent-controlled housing, housing that was withdrawn from the
rental market in the last 15 years, or housing occupied by a tenant in the past 3 years.
• Owner-Occupancy Affidavit. The applicant must indicate, by affidavit, the applicant’s
intention to reside in one of the units built on either parcel for at least three years. This
requirement does not apply if the applicant is a qualified non -profit or community land
trust. The City cannot impose any additional requirement related to owner occupancy.
9
Packet Pg. 208
City of Palo Alto Page 12
• Residential Uses. Any parcel created through via SB 9 must be used for residential
purposes and cannot be used for short-term rentals of less than 30 days.
A parcel map application for an urban lot split that meets these criteria and otherwise qualifies
for the SB 9's ministerial process is exempt from the provisions of the California Environmental
Quality Act, as is an ordinance implementing these provisions. The provisions of the California
Coastal Act of 1976 are applicable to SB 9 urban lot splits, except that a local agency is not
required to hold a public hearing for coastal development permit applications.
As with two-unit developments under SB 9, a local agency may impose objective zoning
standards, objective subdivision standards, and objective design review standards to an SB 9
urban lot split, so long as those standards do not conflict with the limitations imposed by SB 9
and would not physically preclude the construction of up to two units of at least 800 square
feet each.
Other urban lot split limitations in SB 9 include:
• Setbacks. A local agency may not require rear and side yard setbacks of more than four
feet. No setback may be required for a unit constructed (1) within an existing living area,
or (2) in the same location and to the same dimensions as an existing structure.
• Parking Requirements. A local agency may only require one off-street parking space per
unit. No parking requirements may be imposed if the parcel is located within (1) one -
half mile walking distance of either a statutorily defined high-quality transit corridor or
major transit stop, or (2) one block of a car share vehicle. In Palo Alto, a block shall equal
600 feet.
• Easements, Access, and Dedications. A local agency may require an application for a
parcel map for an urban lot split to include easements necessary for the provision of
public services and facilities. The local agency may also require that the resulting parcels
have access to, provide access to, or adjoin the public right-of-way. The local agency
may not require dedications of rights-of-way or construction of offsite improvements.
• Number of Units; ADUs and JADUs. Notwithstanding the provisions of Government
Code Sections 65852.1, 65852.21, 65852.22, and 65915, a local agency is not required to
permit more than two units on any parcel created through the authority in SB 9,
inclusive of any accessory dwelling units or junior accessory dwelling units.
• Adjacent or Connected Structures. A local agency may not deny an application for an
urban lot split solely because it proposes adjacent or connected structures, as long as
the structures meet building code safety standards and are sufficient to allow separate
conveyance.
The standard for denying an application for a parcel map for an urban lot split is the same as for
denying an SB 9 two-unit development – the local building official must make a written finding,
based on a preponderance of the evidence, that the proposed housing development project
would have a specific, adverse impact upon public health and safety, or the physical
environment, and there is no feasible method by which to satisfactorily mitigate the adverse
impact.
9
Packet Pg. 209
City of Palo Alto Page 13
Government Code Section 66452.6 – Subdivision Map Act Amendment
Currently, an approved or conditionally approved tentative map expires either 24 months after
its approval, or after any additional period permitted by local ordinance, not to exceed an
additional 12 months. SB 9 extends the limit on the additional period that may be provided by
local ordinance from 12 to 24 months. Where local agencies adopt this change by ordinance, an
approved or conditionally approved tentative map would expire up to 48 months after its
approval if it received a 24-month extension of approval.
Local Policy Development & Implementation
The City would need to consider these two-unit projects and lot splits ministerially (i.e., without
discretionary review or hearing), if the proposed housing development meets certain
requirements. In particular, the law allows local deve lopment standards to apply to the
dwelling units constructed on the subject parcel(s). The local development standards, however,
must be objective standards. While the City currently is in process to develop objective
standards, that effort was not develop ed with a two-family unit typology in mind. The City,
including the PTC and the ARB, may want to pursue development of standards to ensure any
resulting units created by this law align with Palo Alto’s preferences.
The City will need to determine the process for accepting applications and reviewing
applications and ensuring compliance with restrictions. Notable aspects include that the
resulting units cannot be short term rentals. The law does not require the City to allow
accessory dwelling units when four units are created by both lot split and subsequent two-unit
projects. Likewise, the law requires that lot splits only be performed by property owners who
attest they will reside in one of the units for at least three years. The director of Planning and
Development Services will promulgate rules to effectuate this provision and others.
This law has gained attention in the press and academics alike resulting in many published
articles. One research article that may be of interest published in July 2021 p rior to the signing
of the law2 provides some context of the law’s impacts on housing production throughout the
state.
SB 10 (Wiener) Housing Development/Density
This new law authorizes a city to adopt an ordinance to zone any parcel for up to 10 residential
units, at a height specified by the ordinance if the parcel is in a transit -rich area or an urban
infill site. An ordinance adopted in accordance with this law is not a project for purposes of
CEQA.
It is not a requirement that the City adopt an ordinance. It is meant as a tool for local agencies
to increase housing development in transit -rich areas. Staff will not act on this bill unless
Council directs staff to do so.
2 Terner Center for Housing Innovation (UC Berkeley). July 2021. https://ternercenter.berkeley.edu/wp-
content/uploads/2021/07/SB-9- Brief-July-2021-Final.pdf
9
Packet Pg. 210
City of Palo Alto Page 14
SB 478 (Wiener): Planning and Zoning Law: Housing Development
The new law applies to housing development projects located in a multifamily residential zone
or a mixed-use zone. For Palo Alto, this could apply to several commercial districts that allow
residential and commercial uses.
The law does the following:
• This law prohibits a local agency from imposing a Floor Area Ratio (FAR) standard that is
less than 1.0:1 on a housing development project that consists of three to seven units,
or less than 1.25:1 on a housing development project that consists of eight to ten units.
• The law prohibits a local agency from imposing lot coverage requ irements that would
physically preclude a housing development project from achieving the FARs described
above.
• The law prohibits a local agency from denying a housing development project located on
an existing legal parcel solely on the basis that the lot area of the proposed lot does not
meet the local agency’s requirements for minimum lot size.
For more detailed summary of this law refer to Attachment E of this report.
This law impacts most of Palo Alto’s existing mixed-use development standards. The City will
need to update Title 18 for consistency with the State law. Staff will provide more analysis of
the effects of the regulations for a future public hearing.
Discussion
SB 9 Local Implementation
Staff recommend adopting the attached ordinances (Attachments A and B) in order to comply
with state law and maintain local control to the greatest extent possible. Included in the
legislation, staff have translated the City’s subjective individual review guidelines (see here) into
objective design standards (Attachment C). Attachment C also crosswalks the IR guidelines and
the proposed objective design standards. For qualifying projects, these objective standards
preserve Palo Alto’s neighborhood character and local zoning control. These standards would
apply to qualifying SB 9 projects.
As stated, staff recommend these objective design standards be further studied by the ARB and
PTC in 2022, culminating in a permanent ordinance these bodies will recommend to the City
Council. The urgency ordinance and regular ordinance provide protection in the intervening
time period.
The future work item would not only include objective design standards, but also efforts to
identify acceptable lot split patterns. SB 9 does allow cities to create standards for the lot split
9
Packet Pg. 211
City of Palo Alto Page 15
configurations. Such efforts can help to shape properties and minimize negative impacts on
neighboring properties.
SB 9 Affordability
At present, staff are researching the ability for the City to impose affordability requirements on
SB 9 projects. Generally, it is required by state law that affordability requir ements of greater
than 15% be supported by financial feasibility analysis. That said, staff believe that the City
could apply a 15% inclusionary housing requirement on SB 9 projects. In this case, the applicant
would have the opportunity to pay a fee in-lieu of providing the unit. Currently, one- and two-
unit developments are exempt from the City’s affordable housing requirements.
Staff recommend further researching this policy before imposing this standard. If Council seeks
to implement this policy now, Council may If Council seeks to implement this policy now,
Council may include language in the ordinance. A motion to include in the interim urgency
ordinance and interim ordinance an amendment to chapter 16.65 to subject two unit projects
under SB 9 to the city's affordable housing requirements would accomplish this.
SB 9 Objective Design Standards
Proposed objective design standards for SB 9 projects (Attachment C) reflect the intentions of
the existing single family Individual Review guidelines. They also respond to lot split patterns
that create flag lots and the reduced side and rear setbacks allowed by SB 9.
SB 9 projects would be required to meet all applicable objective design standards with a narrow
exception that an objective design standard shall not be applied if such standard would: 1) not
enable two units on a lot, each having a minimum 800 square feet of floor area, or 2) result in
the maximum floor area allowed by the zoning code on the lot to not be feasible. The proposed
objective design standards should permit required development under SB 9 to be feasible in the
vast majority of situations. If a project did not want to meet the standards, they can voluntarily
enter the discretionary IR process. Such projects might include homes with distinctive or unique
architectural features or other needs to exceed the design standards.
The existing Individual Review guidelines place specific requirements related to streetscape,
massing, and privacy on new two-story homes and upper floor additions. The guidelines take
into consideration the specific neighborhood context and conditions on adjacent property to
promote compatible development.
Application of the guidelines with consideration of existing neighborhood conditions frequently
results in a proposed home not using the entire R-1 zoning envelope. This is an intention stated
and illustrated in the guidelines. As an example, the first twenty (20) two -story home
applications in 2021 resulted in approved homes with maximum heights ranging from 22’-0” to
27’-6”, whereas the height limit in the R-1 zone is 30 feet.
9
Packet Pg. 212
City of Palo Alto Page 16
Other common aspects of development influenced and regulated by the existing guidelines
include garage placement and prominence, size and positioning of the upper floor, building
mass and massing particularly adjacent to a single-story home, and privacy related to the
placement and treatment of upper floor decks and windows facing interior lot lines.
Highlights from the SB 9 objective design standards are included here with explanatory
comments or notes. The highlights combine some standards shown in Attachment C for brevity
and convenience.
Garage Location, Width, and Height: Garages (and carports) shall be located at least 5 feet
back from the front façade and be no wider than 30 perce nt of the façade. The maximum roof
height over a garage shall not exceed 15 feet and the maximum wall plate at a garage shall not
exceed 10 feet.
Garages or carports in mapped Eichler Tracts may be located forward of the front façade plane
of the house, so long as the garage or carport: a. is no more than 21 feet wide, b. has a roof
pitch or 3 in 12 or less, and c. has a maximum height of 12 feet.
The individual review guidelines require garages to be subordinate to the house, entry and
landscape as seen from the street and subordinate to the principal building forms in scale.
Some adjustments are made for garage placement in Eichler Tracts due to historic site
development patterns in those neighborhoods. The objective design standard does not negate
the contextual rear garage placement requirement in the R-1 zone where it is required.
Second Floor Size: Second floor area as portion of the total floor area shall not exceed the
following percentages: (a.) 35 percent where all abutting lots at side lot lin es have two-story
homes, (b.) 30 percent where any abutting lot across a side lot has a one -story house, and (c.)
25 percent where a property is in a mapped Eichler Tract.
Placing more floor area on the ground floor is consistent with the individual revie w guidelines
particularly where next to one-story homes or in neighborhood with a high percentage of one-
story homes. 14 of the surveyed first 20 individual review applications for 2021 had second
floor area less than 35 percent of the total floor area. Th e low percentage for the 20 homes was
12 percent for an addition and 26 percent for a new house. The high percentage was 41
percent. None of these 20 applications were in an Eichler Tract.
Second Floor Stepbacks: Second floor area shall not be permitted within the side and rear yard
setbacks of the underlying single-family zoning district. For example, a second floor would not
be permitted within 20 feet of the rear lot line in the R -1 Zone even though the first floor is
permitted to have a 4-foot rear yard setback per SB 9.
Flag Lot Second Floor Area: On a flag lot, or similar lot without street frontage, floor area shall
only be permitted on a second-floor level if the maximum allowed floor area is greater than 70
9
Packet Pg. 213
City of Palo Alto Page 17
percent of the buildable lot area (i.e., the lot area not within setbacks). In such cases the
maximum second floor area shall be the greater of the allowed floor area in excess of 70
percent of the buildable lot or 300 square feet.
Historically, flag lots have been restricted to a one-story height limit by the zoning regulations.
However, cases may exist where the minimum SB 9 required development of two 800 square
foot units, or development equal to the allowed floor area per the zoning code, may not be
able to be reasonably accommodated in one-story. This objective design standard would permit
second floors on flag, or similar land-locked lots with easement access to a street in some
instances, but would limit the amount second floor area to the practical minimum.
Massing—One-story Rooflines Next to One-story Homes: A proposed home/duplex shall have
a one-story building volume at least 15 feet wide and 15 deep set forward of a second -floor
street facing wall plane or two-story wall plane in the circumstance where a one-story home
exists on the lot to either side across a side lot line.
Additionally, the proposed upper floor on the building side facing a one -story home across the
side lot line shall be set back from the lower floor at least 7 feet for 50 percent of the depth of
the building if the second-floor wall is within 20 feet of the side lot line.
Please reference illustrations 1B and 1D on pages 3 and 5 of the Individual Review Guidelines
and key point 5 of guideline one on page 3 for visual depiction of massing with one -story
rooflines that would comply with this objective design standard.
Roof Height for Varied Roof Pitches: Maximum roof height shall be limited to 27 feet at roofs
with pitches (slopes) 9 in 12 or greater, 25 feet at roofs with pitches 3 in 12 up to 9 in 12, and
22 feet for roof pitches less than 3 in 12. In Eichler Tracts the maximum roof height shall not
exceed 22’ for a pitched roof or 20’ for a flat roof or parapet. Pitched roofs in Eichler Tracts are
limited to 3 in 12 or lower. Please note that the roof height on flat roofs with parapets is
measured to the top of the parapet.
Variation in the height limit by roof pitch is purposeful for managing building mass and scale.
For example, a flat roof building may have considerably more mass and scale, given its taller
wall planes than a pitched roof building of the same height. The proposed roof heights by pitch
reflect height ranges not uncommon with approved projects under individual review.
Second Floor Windows — Window Location and Privacy Measures: On each house/housing
unit with second floor bedrooms at least one second floor bedroom shall have its largest/egress
window facing the front lot line. Additionally, on corner lots at least one second floor bedroom
shall have with its largest/egress window facing the street side lot line.
Where second floor windows face an interior lot line at less than 20 feet distance from the side
lot line or less than 30 feet distance from the rear lot line, they shall provide one of the
9
Packet Pg. 214
City of Palo Alto Page 18
following privacy measures: a. obscure glazing, b. exterior mounted permanent privacy screens
that block sight lines, or c. sills at 5 feet above floor level.
Window placement and privacy mitigation measures are consistent with those noted and
illustrated on the privacy guideline of the individual review guidelines. Proposed landscape is
not considered a primary form of privacy mitigation due to time needed to mature and
landscape’s inherent uncertainties, although it may serve as a secondary mitigation.
Second Floor Balconies and Roof Decks: No more than one second floor deck or balcony shall
be permitted per dwelling and shall meet the following: a. only be permitted on a street facing
façade, b. be located at least 20 feet from an interior side yard, and c. be limited in size to no
more than 40 square feet.
A roof deck (i.e., a deck above the first level of a one-story building or second level of a two-
story building) shall not be permitted.
Upper floor decks have considerable potential to impact neighbors’ privacy across side and rear
lot lines. Key point 4 of the privacy guideline (page 15 of individual review guidelines) states:
“Second story decks are permitted only the extent that they result in minimal loss of privacy to
side or rear facing property. Deck size and potential use may be consid ered in determining
potential loss of privacy.” Using the individual review guidelines frequently results in
modifications to a proposed second floor deck facing an interior lot line, such as screening
walls, deck size reduction, plan rearrangements, or in some cases removal or relocation of the
deck to provide privacy for neighboring property. Lacking these tools and knowledge of the
specific circumstances and design proposal it would be difficult to see an approach where
privacy from second floor decks facing interior lot lines would be achievable with objective
design standards.
Historic Resources
The City has a local historic preservation program that can assess properties for eligibility on the
City’s Local Inventory as an individual historic resource, district and/or contributing building.
The Palo Alto Historic Inventory is the official list designated by the City Council as possessing
significant historical and/or architectural value. Any individual or group may propose
designating a historic structure, site or district to the Inventory according to the procedure
found in the Historic Preservation Ordinance (Municipal Code Section 16.49.040). Properties
nominated for designation are recommended by the Historic Resources Board (HRB) and
decided upon by the City Council.
Currently, the City requires historic resource evaluations for potentially eligible homes
identified in 2000 City Historic Survey when a discretionary permit is applied for. This is
consistent with the City’s Comprehensive Plan. Under S B 9, the City may be in danger of losing
eligible resources and may no longer evaluate additional properties for eligibility. This is
9
Packet Pg. 215
City of Palo Alto Page 19
because an eligible resource must be listed on the Local Inventory to be protected from
demolition under PAMC 16.49.
In order to maximize the preservation of historic resources, they must become listed on the
Local Inventory. The City Council may want to consider updating of the Palo Alto Local
Inventory. If so, staff will return with a budget request for support to carry ou t this effort. This
will include a review of eligible properties for integrity, proper documentation regarding eligible
properties, outreach to property owners, notices to neighbors, and hearings with the HRB and
Council.
Alternative Action
As an alternative to the subject ordinance and objective standards, the City Council could direct
staff to up-zone all R-1 and RE parcels to R-2. In this instance, up to 4 units would still be
allowed on a lot (2 primary units and 2 detached ADUs). The urban lot split provision of SB 9,
however, would not apply. Development of two-story, single-family homes on the “new” R-2
parcels would remain subject to the IR process and IR guidelines.
This scale of up-zoning, however, may not be desirable. Were the City to take this path, the City
could not down zone in the future; this is due to provisions in state law that prevent
downzoning unless another area of a jurisdiction is up-zoned. Secondly, the future of SB 9
remains unclear. Efforts to repeal the law have begun and may prove successful. In that case,
such up-zoning may prove premature.
SB 478
Staff recommend adopting the standards of SB 478 into the City’s municipal code. These
requirements are straight forward. The change in state law could result in increased
applications for housing developments of this size.
Deconstruction and Demolition
When the City adopted its deconstruction ordinance, it inadvertently invalidated portions of
the planning and zoning code. Specifically, since all projects are required to be de constructed
instead of demolished, the requirements related to approval of a replacement project before
demolition in 18.40.160 no longer apply. Initially, early deconstruction was allowed as an
incentive to encourage projects to choose deconstruction. Now that all projects are required to
be deconstructed, the incentive is no longer needed; and “demolition” is no longer the
appropriate term for this code section.
Right now, as the code currently exists, a project can propose deconstruction of a building,
including housing, and not be subject to the no net loss provisions nor required to have an
approved replacement project. Moreover, an applicant could deconstruct a category 3 or 4
historic resource and later apply for a two-unit development or lot split under SB 9.
9
Packet Pg. 216
City of Palo Alto Page 20
Staff propose to rectify this loophole by removing the exception for “deconstruction” from the
requirement to have an approved replacement project. This is included as part of the urgency
ordinance as it will allow the City to exclude locally listed historic resources from
redevelopment under SB 9.
Policy Implications
The City can choose to take no action on any of the policies discussed above. State laws apply
even if local implementing ordinances are not adopted. By taking the recommended actions,
the City can create greater clarity for the public, potential applicants, decision -makers (ARB,
PTC, Council), and for staff.
Through the adoption of the urgency and interim ordinances for SB 9, the City can promulgate
rules for applications and adopt objective design standards. These standards can preserve some
of Palo Alto’s local control.
Lastly, updating the demolition and deconstruction portion of Chapter 18 to align with the
Public Works code will create consistency in the Municipal Code.
Stakeholder Outreach
Due to the limited time from law adoption to implementation, robust public engagement has
not occurred on these items. Staff propose that, during 2022, the PTC and ARB engage in robust
public engagement efforts by hosting study sessions, workshops, and hearings while
considering permanent ordinances for SB 9, SB 478, and strengthening local no -net loss
provisions.
Environmental Review
The City Council finds that this Ordinance is statutorily exempt from the requirements of the
California Environmental Quality Act (CEQA) for the following reasons. Under Government Code
Sections 66411.7(n) and 65852.21(j), an ordinance adopted to implement the requirements of
SB 9 shall not be considered a project under CEQA. Additional sections of thi s ordinance
implementing SB 478 are exempt pursuant to Section 15061 of the State CEQA Guidelines
because they simply reflect pre-emptive state law that will be effective January 1, 2022. As
such, this ordinance does not reflect a change from the status qu o and it therefore can be seen
with certainty that there is no possibility that the ordinance will have a significant effect on the
environment.
Attachments:
• Attachment9.a: Attachment E: Legislation Summaries
• Attachment9.b: Attachment D: SB 9 Infographic
• Attachment9.c: Attachment C: SB9 Objective Standards
• Attachment9.d: Attachment A - Interim Urgency Ordinance to Implement SB 9
• Attachment9.e: Attachment B - Interim Ordinance to Implement SB 9 and SB 478
9
Packet Pg. 217
Legislation Summaries
SB 8 (Skinner) Housing Crisis Act of 2019:
This law makes the following changes:
1) Extends the sunset on the HCA by five years, to January 1, 2030, and provides that until
January 1, 2034, the HCA’s provisions apply to a housing development project that
submits a preliminary application before January 1, 2030.
2) Extends by one year, up to three and a half years, the period during which a local
government may not impose new rules or standards on an affordable housing project, as
defined.
3) Expands on the definition of “housing development project” for the purposes of the HCA
to include both discretionary and ministerial projects, as well as projects to construct
single dwelling units. This extends the HCA’s pre-application process, no-net-loss
provision, and five hearing limit to projects proposing a single dwelling unit. This law also
says that these changes are declaratory of existing law and do not affect the
interpretation of the scope of the Housing Accountability Act, but provides that its
changes do not affect a project for which an application was submitted before January 1,
2022.
4) Clarifies that the receipt of a density bonus is not a basis for finding a project out of
compliance with local zoning rules.
5) Defines, for the purposes of the requirement to up-zone concurrently with a downzone,
“concurrently” to mean at the same meeting, or within 180 days of the downzoning if the
downzoning was requested by an applicant for a housing development project
and refines the provisions governing what a downzone means to include any other action
that would reduce the site’s residential development capacity in effect at the time of the
proposed change.
6) Clarifies that appeals and public meetings related to density bonus law are counted for
the purposes of the five-hearing limit in the HCA and includes technical changes to the
limitation on a local government’s ability to reduce the intensity of land use in its
jurisdiction.
7) Provides, regarding the HCA's demolition and replacement provisions, that:
a. The replacement requirements must be followed, despite local density
requirements that may be in conflict;
b. Any existing occupants that are required to leave their units must be allowed to
return at their prior rental rate if the demolition does not proceed and the
property is returned to the rental market;
c. Relocation and right-of-first-refusal requirements no longer apply to occupants of
any protected units that are moderate-income or high-income households; and
9.a
Packet Pg. 218
Legislation Summaries
d. The right of first refusal provided to occupants of protected units would not apply
in the following circumstances:
i. In a development project that consists of a single residential unit
located on a site where a single protected unit is being demolished.
ii. In units in a housing development in which 100% of the units, exclusive
of a manager's unit or units, are reserved for lower income households,
and the existing residents of the protected unit would be precluded
from occupying the new units based on requirements of one or more
funding source of the housing development.
9.a
Packet Pg. 219
Legislation Summaries
SB 9 (Atkins) Housing Development
This law:
1) Requires a city to ministerially approve either or both of the following, as specified:
a. A housing development of two units in a single-family zone.
b. The subdivision of a parcel zoned for residential use, into two approximately equal
parcels (lot split), as specified.
2) Requires that a development or parcel to be subdivided must be located within an
urbanized area or urban cluster and prohibits it from being located on any of the
following:
a. Prime farmland or farmland of statewide importance;
b. Wetlands;
c. Land within the very high fire hazard severity zone, unless the development
complies with state mitigation requirements;
d. A hazardous waste site;
e. An earthquake fault zone;
f. Land within the 100-year floodplain or a floodway;
g. Land identified for conservation under a natural community conservation plan, or
lands under conservation easement;
h. Habitat for protected species; or
i. A site located within a historic or landmark district, or a site that has a historic
property or landmark under state or local law, as specified.
3) Prohibits demolition or alteration of an existing unit of rent-restricted housing, housing
that has been the subject of an Ellis Act eviction within the past 15 years, or that has been
occupied by a tenant in the last three years.
4) Prohibits demolition of more than 25% of the exterior walls of an existing structure unless
the local ordinance allows greater demolition or if the site has not been occupied by a
tenant in the last three years.
5) Authorizes a city to impose objective zoning, subdivision, and design review standards
that do not conflict with this law, except:
a. A city shall not impose objective standards that would physically preclude the
construction of up to two units or that would physically preclude either of the two
units from being at least 800 square feet in floor area. A city may, however,
require a setback of up to four feet from the side and rear lot lines.
b. A city shall not require a setback for an existing structure or a structure
constructed in the same location and to the same dimensions as the existing
structure.
9.a
Packet Pg. 220
Legislation Summaries
6) Prohibits a city from requiring more than one parking space per unit for either a proposed
duplex or a proposed lot split. Prohibits a city from imposing any parking requirements if
the parcel is located within one-half mile walking distance of either a high-quality transit
corridor or a major transit stop, or if there is a car share vehicle located within one block
of the parcel.
7) Authorizes a local agency to deny a housing project otherwise authorized by this law if
the building official makes a written finding based upon the preponderance of the
evidence that the housing development project would have a specific, adverse impact
upon health and safety or the physical environment and there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact.
8) Requires a city to prohibit rentals of less than 30 days.
9) Prohibits a city from rejecting an application solely because it proposes adjacent or
connected structures, provided the structures meet building code safety standards and
are sufficient to allow separate conveyance.
10) Provides that a city shall not be required to permit an accessory dwelling unit (ADU) or
junior accessory dwelling unit (JADU) when a property owner utilizes both the urban lot
split and the two-unit provisions of the law.
11) Requires a city to include the number of units constructed and the number of applications
for lot splits under this law, in its annual progress report (APR).
12) Requires a city to ministerially approve a parcel map for a lot split only if the local agency
determines that the parcel map for the urban lot split meets the following requirements,
in addition to the requirements for eligible parcels that apply to both duplex and lot splits:
a. The parcel map subdivides an existing parcel to create no more than two new
parcels of approximately equal size, provided that one parcel shall not be smaller
than 40% of the lot area of the original parcel.
b. Both newly created parcels are at least 1,200 square feet, unless the city adopts a
small minimum lot size by ordinance.
c. The parcel does not contain rent-restricted housing, housing where an owner has
exercised their rights under the Ellis Act within the past 15 years or has been
occupied by tenants in the past three years.
d. The parcel has not been established through prior exercise of an urban lot split.
e. Neither the owner of the parcel, or any person acting in concert with the owner,
has previously subdivided an adjacent parcel using an urban lot split.
9.a
Packet Pg. 221
Legislation Summaries
13) Requires a city to approve a lot split if it conforms to all applicable objective requirements
of the Subdivision Map Act not except as otherwise expressly provided in this law.
Prohibits a city from imposing regulations that require dedicated rights-of-way or the
construction of offsite improvements for the parcels bein g created, as a condition of
approval.
14) Authorizes a city to impose objective zoning standards, objective subdivision standards,
and objective design review standards that do not conflict with this law. A city may,
however, require easements or that the parcel have access to, provide access to, or adjoin
the public right-of-way.
15) Provides that a local government shall not be required to permit more than two units on
a parcel.
16) Prohibits a city from requiring, as a condition for ministerial approval of a lot split, the
correction of nonconforming zoning conditions.
17) Requires a local government to require an applicant for an urban lot split to sign an
affidavit stating that the applicant intends to occupy one of the housing units as their
principal residence for a minimum of three years from the date of the approval of lot split,
unless the applicant is a community land trust, as defined, or a qualified nonprofit
corporation, as defined.
18) Provides that no additional owner occupancy standards may be imposed other than those
contained within 17) above, and that requirement expires after five years.
19) Allows a city to adopt an ordinance to implement the urban lot split requirements and
duplex provisions and provides that those ordinances are not a project under California
Environmental Quality Act (CEQA).
20) Allows a city to extend the life of subdivision maps by one year, up to a total of four years.
9.a
Packet Pg. 222
Legislation Summaries
SB 10 (Wiener) Housing Development/Density
This law:
1) Authorizes a city to pass an ordinance, notwithstanding any local restrictions on zoning
ordinances that limit the legislative body’s ability to adopt zoning ordinances, to zone any
parcel for up to 10 units of residential density, at a height specifi ed by the ordinance, if
the parcel is located in a transit-rich area or an urban infill site (see below for definitions).
2) Specifies that neither an ordinance adopted consistent with (1) above, nor any
resolution ordinance or any other local regulation adopted to amend the jurisdiction’s
general plan to be consistent with that ordinance, is a project for purposes of California
Environmental Quality Act (CEQA).
3) Requires a local agency that adopts an ordinance pursuant to this law to do all the
following:
a. Include a declaration that the zoning is adopted pursuant to this law.
b. The zoning ordinance shall clearly demarcate the areas that are zoned.
c. Make a finding that the increased density is consistent with the city’s obligatio n
to affirmatively further fair housing.
d. If the ordinance supersedes any zoning restriction established by a local
initiative, the ordinance shall only take effect if adopted by a 2/3 vote of the
members of the legislative body.
4) Prohibits, notwithstanding any other law permitting ministerial or by right approval of a
development project, or any other CEQA exemption, a project of more than 10 units from
receiving ministerial or by right approval if it uses the provisions of this law.
a. The creation of up to two accessory dwelling units (ADUs) or junior accessory
dwelling units (JADUs) shall not count towards the total number of units when
determining whether the project may be approved ministerially or by right under
(4) above.
b. A project may not be divided into smaller projects in order to exclude the project
from the prohibition under (4).
5) Defines “transit-rich area” as a parcel within one-half mile of a major transit stop, or a
parcel on a high-quality bus corridor. Defines “high-quality bus corridor” as a corridor
with a fixed-route bus service that meets specified service interval times.
9.a
Packet Pg. 223
Legislation Summaries
6) Defines “urban infill site” as a site that satisfies all the following:
a. A site that is a legal parcel or parcels located in a city if the city boundaries include
some portion of either an urbanized area or urban cluster or for unincorporated
areas, a legal parcel or parcels wholly within the boundaries of an urbanized area
or urban cluster.
b. A site in which at least 75% of the perimeter adjoins parcels that are developed
with urban uses. Parcels that are only separated by a street or highway shall be
considered to be adjoined.
c. A site that is zoned for residential use or residential mixed-use, or has a general
plan designation that allows residential use or a mix of residential and non -
residential uses, with at least two-thirds of the square footage of the development
designated for residential use.
7) Excludes parcels located in either of the following:
a. A high or very high fire hazard severity zone, except for sites that have adopted
fire hazard mitigation measures pursuant to existing building standards or state
fire mitigation measures applicable to the development.
b. A local restriction enacted or approved by a local initiative that designates
publicly owned land as open space or for park or recreational purposes.
8) Prohibits a local government from subsequently reducing the density of any parcels
subject to an ordinance adopted pursuant to this law.
9) Provides that this law shall not apply to a project located on a parcel or parcels that are
zoned pursuant to an ordinance adopted under this law, then subsequently rezoned
without regard to this law, as specified.
10) Prohibits an ordinance adopted pursuant to this law from reducing the density of any
parcel subject to the ordinance.
11) Includes a sunset of January 1, 2029, and authorizes an ordinance adopted pursuant to
this law to extend beyond January 1, 2029.
9.a
Packet Pg. 224
Legislation Summaries
SB 478 (Wiener): Planning and Zoning Law: Housing Development
This law:
1) Prohibits a local government from doing the following:
a) For a housing development project consisting of three to seven units, impose a
floor area ratio (FAR) standard that is less than 1.0.
b) For a housing development project consisting of eight to 10 units, impose a FAR
standard that is less than 1.25.
c) Deny a housing development project located on an existing legal parcel solely on
the basis that the lot area of the proposed lot does not meet the local agency’s
requirements for minimum lot size.
2) Requires, to be eligible for the minimum FAR standards above, the housing development
project to meet all the following conditions:
a) The project contains at least three but no more than 10 units.
b) The project is in a multifamily residential zone or a mixed-use zone, and is not
located in either of the following:
i) Within a single-family zone.
ii) Within a historic district or property included in the State Historic
Resources Inventory or within a site that is designated or listed as a city or
county landmark or historic property or district pursuant to a city or county
ordinance.
c) The project is located on a legal parcel or parcels in a city if, and only if, the city
boundaries include some portion of either an urbanized area or urban cluster, or,
for unincorporated areas, a legal parcel or parcels wholly within the boundaries of
an urbanized area or urban cluster.
3) Provides that this law shall not be construed to prohibit a local agency from imposing any
zoning or design standards other than zoning or design standards that conflict with those
in 1) above.
4) Prohibits a local government from imposing a lot coverage requirement that
would physically preclude a housing development that meets the requirements
established in 2) above from achieving FAR ratios allowed in 1) above.
9.a
Packet Pg. 225
Legislation Summaries
5) Requires the Department of Housing & Community Development (HCD) to notify a local
government and may notify the state Attorney General if the local government is in
violation of the requirements in this law.
6) Declares void and unenforceable any covenant, restriction, or condition contained in any
deed, contract, security instrument, or other instrument aff ecting the transfer or sale of
any interest in a planned development, and any provision of governing document of a
homeowner’s association, if it effectively prohibits or unreasonably restricts an eligible
housing development project from using the FAR standards under the law.
7) Provides that it does not apply to reasonable restrictions on a housing development
project that do not make the FAR standards in this law infeasible.
9.a
Packet Pg. 226
C2
Senate Bill 9 (SB 9) is a new California State Law taking effect January 1, 2022.
SENATE BILL 9 (SB 9): AN OVERVIEW
WHAT IT IS AND HOW IT IMPACTS RESIDENTIAL LAND USE
Similar to previous state legislation on Accessory Dwelling Units (ADUs), SB 9
overrides existing density limits in single-family zones. SB 9 is intended to
support increased supply of starter, middle-class homes by encouraging
building of smaller houses on small lots.
SB 9 WAIVES DISCRETIONARY REVIEW AND PUBLIC HEARINGS FOR:
BUILDING TWO HOMES
on a parcel in a single-family zone
SUBDIVIDING A LOT INTO TWO
that can be smaller than required min. size
Used together, this allows
where 1 was allowed before
4 HOMES
SB 9 CAN BE USED TO: Add new homes to existing parcel • Divide existing house into multiple units • Divide parcel and add homes
WHAT IT CAN MEAN FOR RESIDENTIAL DEVELOPMENT
Illustrations are based on a preliminary analysis of the law. Details are subject to change and are for informational purposes only.
VACANT LOT
LOT WITH
SINGLE-FAMILY HOME
LOT WITH
NONCONFORMING DUPLEX
LOT WITH SINGLE-FAMILY
HOME AND AN ADU
USING SB 9 WITHOUT A LOT SPLIT:
• Without a lot split, SB 9 does not limit the number
of ADUs or JADUs (B2, D2) – but other laws might.
• SB 9 could be interpreted to allow 2 new units
beyond an existing unit (for a total of 3 units/lot).
USING SB 9 WITH A LOT SPLIT:
• SB 9 does not require jurisdictions to approve more
than 4 units total, including any ADUs/JADUs.
A1
BE
F
O
R
E
B1 C1 D1
No units One unit Up to 2 units
(nonconforming)
1 unit
+ 1 ADU/JADU
AD
D
U
N
I
T
S
,
NO
L
O
T
S
P
L
I
T
A2 B2 D2
Up to 2 units
+ 2 ADUs/JADUs
Up to 2 units
+ 2 ADUs/JADUs
No additional units Can add 1 addtl. unit
+ 1 ADU/JADU
A3 B3 C3 D3
AD
D
U
N
I
T
S
AN
D
L
O
T
S
P
L
I
T
Up to 4 total units Up to 4 total units Up to 4 total units Up to 4 total units
SINGLE-UNIT DEVELOPMENTS
SB 9 can be used to develop single
units – but projects must comply
with all SB 9 requirements.
THIS DOCUMENT DOES NOT CONSTITUTE LEGAL ADVICE OR OPINIONS REGARDING SPECIFIC FACTS. FOR MORE INFORMATION ABOUT SB 9, PLEASE CONTACT YOUR OWN LEGAL COUNSEL.
DRA
F
T
9.b
Packet Pg. 227
Addtl. qualifications for
LOT SPLITS
Lot is split roughly in half
– smaller lot is at least
40% of the original lot4
Each new lot is at least
1,200ft2 5, 6
Lot is not adjacent to
another lot split by SB
9 by the same owner or
“any ptwerson acting in
concert with the owner”
Lot was not created by a
previous SB 9 split7
Addtl. qualifications for
2-UNIT DEVELOPMENTS
Project does not remove
more than 25% of exterior
walls on a building that
currently has a tenant or
has had a tenant in the last
3 yrs even if the rental unit
itself isn’t altered
DOES THE PROPERTY QUALIFY?
2-UNIT DEVELOPMENTS AND LOT SPLITS
Single-family lot (usually R-1)
Located in an Urbanized Area or Urban Cluster1
Not in state/local historic district, not a historic landmark
Meets requirements of SB35 subparagraphs (a)(6)(B)-(K)2:
PROPERTY CANNOT BE:
Prime farmland or farmland of statewide importance (B)
Wetlands (C)
Identified for conservation or under conservation
easement (I+K)
Habitat for protected species (J)
PROPERTY CANNOT BE (UNLESS MEETING SPECIFIED REQUIREMENTS):
Within a very high fire hazard severity zone (D)
A hazardous waste site (E)
Within a delineated earthquake fault zone (F)
Within a 100-year floodplain or floodway (G+H)
Project would not alter nor demolish:
Deed-restricted affordable housing
Rent-controlled housing
Housing on parcels with an Ellis Act eviction in last 15 yrs
Housing occupied by a tenant currently or in last 3 yrs3
1 Defined by the Census Bureau; 2 See Section 65913.4(a)(6) Exclusions for full details
and definitions; 3 Lot can be split first, then new units added to the lot without the
Ellis Act-affected building; 4 Each lot can be smaller than required minimum lot size;
5 This number can be lowered by local ordinance; 6 If minimum size is 1,200ft2, this
requires a 2,400ft2 lot to start with, or 3,000ft2 if a 60/40 split; 7 This does not apply
to previous lot splits taken under usual Map Act procedures
2-
U
N
I
T
D
E
V
S
• Without a lot split, agency
CANNOT use SB 9 to limit
ADUs/JADUs e.g., lot can have
2 primary units + 1 ADU + 1 JADU
• Agency MUST include # of SB 9
units in annual progress report
• For properties with on-site
wastewater treatment,
agency MAY require a
percolation test within last 5
yrs or recertification within
last 10 yrs
LO
T
S
P
L
I
T
S
• Agency MAY approve more
than two units on a new
parcel including ADUs, JADUs,
density bonus units, duplex units
• Project MUST conform to all
relevant objective reqs. of
Subdivision Map Act
• Agency MAY require
easements for provision of
public services and facilities
• Agency MAY require parcels
to have access to, provide
access to, or adjoin public
right of way
• Project MUST be for
residential uses only
• Applicant MUST sign affidavit
stating they intend to live in
one of the units for 3+ yrs10
• Agency MUST include number
of SB 9 lot split applications
in annual progress report
• Agency CANNOT require
right-of-way dedications or
off-site improvements
• Agency CANNOT require
correction of nonconforming
zoning conditions
LIMITATIONS APPLIED
2-UNIT DEVS. AND LOT SPLITS
• HOAs MAY restrict use of SB 9
• Agencies MUST only impose objective8 zoning standards,
subdivision standards, and design standards (they MAY impose a
local ordinance to set these standards)
• These standards MUST NOT preclude 2 units of at least 800ft2
• Projects MUST follow local yard, height, lot coverage, and other
development standards, EXCEPT:
A local agency MAY NOT require rear or side setbacks of more
than 4 ft, and CANNOT require any setback if utilizing an
existing structure or rebuilding a same-dimensional structure
in the same location as an existing structure
• Project MAY be denied if a building official makes a written
finding of specific, adverse impacts on public health or safety
based on inconsistency with objective standards, with no feasible
method to mitigate or avoid impact
• Agency MAY require 1 parking space/unit, unless the project is:
• Within 1/2 mile of “high-quality transit corridor” or “major
transit stop”9
• Within 1 block of a carshare vehicle
• Agency MUST require that units created by SB 9 are not used for
short-term rental (up to 30 days)
• Agency MUST allow proposed adjacent or connected structures
as long as they comply with building codes and are “sufficient to
allow separate conveyance”
8 “Objective” as defined by the Housing Accountability Act; 9 See Sections 21155 and
21064.3 of the Public Resources Code for definitions of these terms; 10 Unless the
applicant is a land trust or qualified non-profit
CEQA Does not apply to 2-unit or lot split approvals or
ordinances implementing 2-unit or lot split provisions
Coastal Act Applies, but no public hearings needed for duplex and lot
split coastal development permits
Housing Crisis Act Local ordinances cannot impose restrictions that
reduce the intensity of land use on housing sites (including total
building envelope, density, etc.)
SB8 SB 9 projects are subject to Permit Streamlining Act deadlines
SB478 Does not apply to single-family zones
Whether to require:
• Septic tank percolation tests
• 1 parking space per unit
• 2-UNITS Owner-occupancy
• SPLIT Public services/facilities
easements
• SPLIT Right-of-way easements
Whether to allow:
• Creation of lots <1,200ft2
• SPLIT >2 units/new lot
Define:
• Objective zoning/subdivision/
design review standards
• “Acting in concert with owner”
• “Sufficient for separate
conveyance”
Create:
• Application forms and checklists
• Recording of deed restrictions
for short-term rentals and
future lot splits
• Owner-occupancy affidavit
RELATIONSHIPS TO OTHER LAWS
KEY DECISIONS FOR AGENCIES TO MAKEDRA
F
T
DRA
F
T
9.b
Packet Pg. 228
November 24, 2021 Page 1 of 11
SB-9 OBJECTIVE DESIGN STANDARDS
(IR GUIDELINES CROSSWALK)
The City’s Individual Review (IR) Program was established in 2001. The associated IR Guidelines were updated in 2005. These are intended to
preserve the character of Palo Alto neighborhoods by implementing requirements relating to streetscape, massing, and privacy. These SB-9
Objective Design Guidelines are based upon these IR Guidelines, and arranged in accordance with the five (5) IR Guidelines as follows:
GUIDELINE ONE: Site Planning: Garage, Driveway, and House
GUIDELINE TWO: Neighborhood Compatibility for Height, Mass, and Scale
GUIDELINE THREE: Resolution of Architectural Form, Massing, and Roof Lines
GUIDELINE FOUR: Visual Character of Street Facing Facades and Entries
GUIDELINE FIVE: Privacy from Second Floor Windows and Decks
Each IR Guideline is further broken down into Key Points. This document converts the existing discretionary Key Points into Objective Standards.
To facilitate implementation of IR Guidelines in Eichler neighborhoods, these Standards reference information from the Eichler Neighborhood
Design Guidelines adopted by Council on April 2, 2018.
Note: An SB-9 objective design standard shall not be applied if: 1) such standard would not enable two units, each having a minimum 800 square
feet or 2) the maximum floor area allowed by the zoning code would not be feasible.
IR Key
Point
IR Guideline Concept/
Key Point
SB-9 Objective Design Standards
1.1 DRIVEWAYS: Minimize
driveway paving
impacts in order to
highlight yards and
pedestrian entryways.
1.1A: DRIVEWAYS: One curb cut and driveway per street frontage. Shared driveways are encouraged but
require an easement to which the City is a third party.
1.1B: DRIVEWAY WIDTH: 18-foot maximum driveway width (inclusive of uncovered parking) within a front or
street side yard setback.
1.1C. PLANTING STRIP: A minimum two-foot wide, landscaped planting strip is required between a driveway
and/or uncovered parking space and an interior lot line.
9.c
Packet Pg. 229
November 24, 2021 Page 2 of 11
IR Key
Point
IR Guideline Concept/
Key Point
SB-9 Objective Design Standards
1.1D WALKWAY SEPARATION: Walkways shall be separated from driveways by a minimum of 4 feet of
landscape planting or extend sideways (that is, perpendicular) from driveway so that no additional parking or
paved turnaround space is created in a front or street side yard beyond that of the maximum allowed driveway
width.
1.1F: DRIVEWAY MATERIALS: Driveway and uncovered parking surfaces that exceed 10 feet in width shall not
have asphalt or grey concrete surfaces. They must have a decorative surface to blend with the landscape such
pavers, brick, or colored concrete.
1.2 GARAGES & CARPORTS:
Locate garages to be
subordinate to and
minimally visible, or
significantly less
prominent, than the
house.
1.2A: GARAGE LOCATION: Attached or detached garages/carports must be located a minimum of 5 feet behind
the forwardmost plane of the front facade or 3 feet behind the forwardmost plane of the street-side façade.
The forwardmost façade plane may be a building wall or porch with posts/columns and must be at least 12
feet wide.
1.2B: GARAGE WIDTH: An attached or detached garage/carport facing the street shall be no more than 30
percent of the total facade width facing that street, except that it may be 12 feet wide in any circumstance.
1.2C: EICHLER TRACT GARAGES: In mapped Eichler Tracts, a garage or carport may be located forward of the
front facade plane of the house so long as the garage or carport is:
(a) no more than 21 feet wide,
(b) has a roof pitch of 3:12 (slope of 3 vertical feet for every 12 horizontal feet) or less, and
(c) has a maximum height of no more than 12 feet above existing grade.
1.2D: DUPLEX PARKING REQUIREMENT: In the case of a duplex, when parking spaces are required, the parking
space for each unit shall be a covered parking space.
1.3 SECOND FLOOR SIZE &
LOCATION: Site
planning (setbacks,
yard areas, etc.) and
footprint configuration
(inclusive of upper
1.3A: SECOND FLOOR SIZE: The maximum floor area above the first-floor level:
(a) shall not exceed 35 percent of total gross floor area on the lot except as noted in subsection (b) or
Standard 1.3B.
(b) shall not exceed 30 percent of the total gross floor area where an abutting lot along a side lot line
has a one-story home or home with no more than 500 square feet of second floor area.
9.c
Packet Pg. 230
November 24, 2021 Page 3 of 11
IR Key
Point
IR Guideline Concept/
Key Point
SB-9 Objective Design Standards
floor location/area)
shall fit existing
neighborhood patterns
and take cues from
adjacent lot conditions
(see guideline
examples).
1.3B: EICHLER TRACT SECOND FLOOR SIZE: Where a property is in a mapped Eichler Tract, and not in a single-
story overlay zone, the maximum floor area of the second floor shall not exceed 25 percent of the total gross
floor area on the lot.
1.3C: FRONT SETBACK Where the contextual front yard setback does not apply, the front setback shall be no
less than the average front setback of the homes on lots to either side of the subject lot. (Note: In all cases,
the zoning minimum front setback or special setback would still apply.)
1.3D: SECOND FLOOR STEPBACKS: Second floor area shall not be permitted within the standard side or rear
setbacks of the underlying single family zoning district.
1.3E. SECOND FLOOR AREA ON FLAG LOTS AND SUBSTANDARD LOTS: On flag lots (or similar lots without street
frontage) and/or substandard lots, if the maximum allowed total floor area is greater than 70 percent of the
buildable lot area, floor area may be placed on a second level. The maximum second floor area allowed shall
be the area in excess of 70 percent of the buildable lot area or 300 square feet, whichever is greater.
1.4 LANDSCAPE
SCREENING:
Landscaped open space
along interior lot lines
between homes.
1.4A: SCREENING LANDSCAPE: Plant screening trees with a species having a typical mature height of at least
25 feet, and mature canopy width of 15 feet at a quantity of at least one per 25 linear feet along each interior
lot line. Existing trees to be retained that are at least 25 feet tall and 15 feet wide may substitute for required
planting on a one-to-one ratio. Three closely spaced tall screening shrubs with a mature height of at least 20
feet and mature width of at least 5 feet may be substituted for one screening tree.
1.4B: PLANTING TYPE AND SIZE: Screening trees and shrubs shall be specified by botanical name with at least
50 percent of screening trees and shrubs being evergreen. Screening trees shall be specified and planted at
24-inch box size or larger and 8 feet height or taller. Screening shrubs shall be specified and planted at 15-
gallon size or larger and 8 feet or taller.
1.4C: PLANTING ADJACENT PUE’S: Where an easement such as a PUE exist along an interior lot line, trees are
required to be planted on the same side of the easement as the building, but not within the easement.
9.c
Packet Pg. 231
November 24, 2021 Page 4 of 11
IR Key
Point
IR Guideline Concept/
Key Point
SB-9 Objective Design Standards
1.5 STEP BACKS NEXT TO
SINGLE-STORY HOMES:
Locate an upper floor
well back from the
front façade and/or
away from side lot lines
if the home is adjacent
to small or single-story
homes (see guideline
examples).
1.5A: CONTEXTUAL FRONT MASSING STEPBACK: Where a home on an abutting lot across a side lot line is
single-story or has a second-floor area less than 500 square feet, a proposed structure shall have a one-story
building volume at least 15-foot wide and 15-foot deep at the front side of the house set forward of any
second-floor street facing wall plane.
1.5B: CONTEXTUAL SIDE MASSING STEPBACK: Where a home on an abutting lot across a side lot line is single-
story or has a second-floor area less than 500 square feet, each proposed structure located within 20 feet of
the side lot line shall step back the upper floor from the lower floor along that side of the structure at least 7
feet for at least 50 percent of the depth of the structure.
1.5C: SIDE DAYLIGHT PLANE CLEARANCE: Where a home on an abutting lot across a side lot line is single-story
or has a second-floor area no more than 500 square feet, the proposed structure(s) shall maintain at least 2
feet clearance from the second-floor roof edge or wall parapet to the side daylight plane as measured
perpendicularly to the side daylight plane.
1.5D: EICHLER TRACT SIDE DAYLIGHT PLANE CLEARANCE: In mapped Eichler Tracts the clearance from any roof
edge to the side daylight plane as measured perpendicularly from the daylight plane shall be at least 4 feet.
1.6 GARAGE PLACEMENT:
Avoid placing a second
story such that it would
emphasize the garage.
See Standard 1.2A
2.1 BUILDING
HEIGHT/MASS:
Avoiding overwhelming
adjacent single-story
homes with large
masses, monumental
forms, and sharp
contrasts in height.
Incorporate lower
height and profile and
2.1A: UPPER FLOOR FRONT FAÇADE AREA: Where an abutting lot across a side lot line has a single-story home
or home with no more than 500 square feet on the second floor, the front facade's visible wall area on the
upper floor shall be no greater than 50 percent of the front facade's visible wall area on the first floor. Wall
area includes the area defined by porches, windows, and wall surfaces under gables. On corner lots, the front
facade shall be the facade at the shorter frontage.
2.1B: ROOF HEIGHT FOR VARIED ROOF PITCHES: Roof height shall be limited to 27 feet for roofs with pitches
9:12 or greater, 25 feet for roofs with pitches 3:12, up to 9:12, and 22 feet for roofs with pitches less than
3:12. Properties in flood zones shall be permitted to increase building height by one-half foot for each foot
that the base flood elevation exceeds existing grade.
9.c
Packet Pg. 232
November 24, 2021 Page 5 of 11
IR Key
Point
IR Guideline Concept/
Key Point
SB-9 Objective Design Standards
place more area on
lower floor.
2.1C: EICHLER TRACT ROOF HEIGHTS: In mapped Eichler Tracts the maximum roof height shall not exceed 22
feet, as measured from existing grade to the roof surface for a pitched roof, or 20 feet for a flat roof surface
or parapet. Properties in flood zones shall be permitted to increase building height by one-half foot for each
foot that the base flood elevation exceeds existing grade.
2.2 MASS REDUCTION:
Managing mass and
scale from high floor
levels, tall wall planes
and boxy forms.
2.2A: FIRST FLOOR LEVEL: The finished first floor level shall not be more than 18 inches above existing grade.
In Eichler Tracts, the finished first floor level shall not be more than 12 inches above existing grade. In a flood
zone, the first-floor level may be set at the minimum allowed above grade to meet code requirements. For a
lot removed from the flood zone due to on-site grading, the measurement shall be taken from revised grade.
2.2B: FLOOR-TO-FLOOR HEIGHT: The height from the first finished floor to the second finished floor shall not
exceed 10'-6”.
2.2C: SECOND FLOOR WALL PLATE HEIGHT: The wall plate height (i.e., interior wall height at exterior wall) on
the second floor shall not exceed 9 feet for roofs with pitches 3:12 or lower; 8'-6" for roofs with pitches greater
than 3:12 up to 9:12; and 8 feet for roofs with pitches 9:12 or greater.
2.2D: PARAPET HEIGHT: Parapets shall not exceed 1 foot above the roof surface over second floor roofs.
2.3 ROOF EDGE HEIGHT
CONTRAST TO
NEIGHBOR: Limiting
height contrast of
adjacent roofs,
including single story
roof edges.
2.3A: CONTEXTUAL FIRST FLOOR EAVE HEIGHT: The height of the first floor's street facing roof edges (i.e.,
eaves or parapets) shall not exceed 18 inches above the average height of the first-floor eave or parapet of
the homes on the abutting lots at side lot lines as measured at those homes' eaves nearest the subject lot.
This first-floor roof edge height limit shall also extend 15 feet back from the building corner. This standard
shall be 24 inches within a flood zone if either of the abutting homes’ first-floor level does not meet current
flood zone regulations. This standard applies to the eave side of pitch roof forms and not the rake side such as
at a gable.
2.3B: CONTEXTUAL SECOND FLOOR EAVE HEIGHT: The height of the upper floor's street facing roof edge (eave
or parapet) shall not exceed 18 inches above either:
(a) the average height of the upper floor street facing eave or roof edge of homes to each side, or
(b) in the case of only one home having a second floor, the height of that home's eaves.
9.c
Packet Pg. 233
November 24, 2021 Page 6 of 11
IR Key
Point
IR Guideline Concept/
Key Point
SB-9 Objective Design Standards
2.4 FLOOR AREA WITHIN
ROOF VOLUME: Place
2nd story floor area
within the first-floor
roof's volume to
mitigate height, mass,
and scale.
See Standard 1.3
2.5 MASSING PLACEMENT:
Locate smaller volumes
in front of large
volumes and use roof
pitches and forms to
manage perceived
height.
2.5A: SINGLE-STORY BUILDING FORMS: At least one single-story building form (excluding garages) with
dimensions no greater than 16 feet in height, no less than 8 feet in depth, and no less than 12 feet in width
shall be placed on each street facing building side. Location shall be either:
(a) fully forward of the second floor's wall face, or
(b) partially forward or aligned with the second floor's wall face if the one-story form is at a building
corner.
2.5B: Within mapped Eichler Tracts, garages may serve as the form in Standard 2.5A, and no roof pitch shall
exceed 3:12. (See Standard 3.2C).
2.6 WALL HEIGHT/ATTIC
SPACE: Avoiding tall
wall heights and large
unused attic spaces.
2.6A: ATTIC HEIGHT: Unused attic spaces shall not exceed 5 feet in height.
2.6B: EXTERIOR WALL HEIGHT: No exterior wall shall exceed 22 feet in height as measured from existing grade
to the eave or parapet. Portions of walls under rakes such as at gables or shed roof forms may exceed this
height.
3.1 GARAGE AND ENTRY
HEIGHT & MASS: The
building's massing and
roof forms should
reduce mass and
resolve building form
with garage and entry
forms subordinate in
3.1A: GARAGE HEIGHT AND MASS: Maximum height of a roof over an attached garage shall not exceed 15 feet
in height as measure from existing grade. The maximum garage wall plate height shall not exceed 10 feet.
3.1B: ENTRY HEIGHT: Exterior entry forms shall not exceed 12 feet in height as measured from existing grade.
9.c
Packet Pg. 234
November 24, 2021 Page 7 of 11
IR Key
Point
IR Guideline Concept/
Key Point
SB-9 Objective Design Standards
scale to the principal
building forms.
3.2 CONSISTENT ROOF
FORMS & PITCHES: Use
consistent forms, roof
pitches, and overhangs
that are also based on
a recognizable
architectural style.
3.2A: ROOF FORM VARIATION: No more than two types of roof forms shall be used (examples of two forms
are hip and gable roofs or shed and flat roofs).
3.2B: ROOF PITCH VARIATION: No more than two roof pitches shall be used (e.g., 4:12 and 12:12; 6:12 and
flat).
3.2C: ROOFLINES IN EICHLER TRACTS: In mapped Eichler Tracts rooflines shall meet the following:
(a) roof pitches no more than 3:12,
(b) gable, shed, butterfly or flat roof forms (note: hip roofs with flat roofs at eaves permitted; see
Illustration 1D of the IR guidelines for example), and
(c) 2-foot minimum overhangs at eave and rake sides of roof forms for at least 50 percent of roof
edges.
3.3 ROOF FORMS:
Organized roof
geometry with well-
spaced primary and
secondary forms and
integrated roof forms
on additions.
3.3A: INCOMPLETE ROOF FORMS: Truncated hip and gable roof forms shall not be permitted at second floor
roofs on two-story structures or roofs at single story structures.
Note: A truncated roof form is where the roof planes do not extend to a ridgeline; rather they terminate with
a flat roof or roof well.
3.4 UNCLUTTERED
MASSING: Avoid
cluttered massing by
using a few simple,
well- proportioned
forms.
3.4A: GABLE ROOF FORMS: No more than three gable forms on an elevation facing a public street.
3.4B: BAY WINDOWS: No more than two bay windows on an elevation facing a public street.
3.5 ROOF PITCH NEXT TO
1-STORY HOMES: Use
roof layout, ridge
orientation, roof pitch,
3.5A: CONTEXTUAL ROOF PITCH: On properties adjacent to single story homes along either interior side lot
line, roof pitches on new two-story buildings shall be 6:12 or lower.
9.c
Packet Pg. 235
November 24, 2021 Page 8 of 11
IR Key
Point
IR Guideline Concept/
Key Point
SB-9 Objective Design Standards
eave height offsets and
extensions, and
horizontal roof lines to
reduce mass and
enhance form.
4.1 FAÇADE FOCAL POINTS:
Facades should have
unified visual character
with architectural focal
points (other than a
garage) on each street
side. Corner lot
elevations should be
equally well designed
on both facades.
4.1A: FAÇADE VISUAL FOCAL POINT: Each street facing building elevation shall have a significant visual focal
point, defined as either:
(a) at least 50 square feet of glazing in a large window, multi-panel window or glazed door, or bay
window form, or
(b) a roofed or trellised porch at least 6 feet deep and 8 feet wide and no more than 12 feet tall.
4.2 FAÇADE COMPOSITON:
Façades should be
composed with
attention to line,
order/alignment of
openings, proportion of
windows and forms,
hierarchy and spacing
of focal points.
4.2A: WINDOW ALIGNMENT: Windows on two-story wall planes that face a street shall be aligned vertically
unless there is a change in exterior materials from the lower floor to the upper floor.
4.2B: FAÇADE ELEMENT SPACING: Focal points such as porches, large/featured windows, and bay windows
shall be spaced at least 5 feet horizontally apart from each other when placed on the same level/floor.
4.3 MATERIALS &
DETAILING:
Architectural
character/interest and
supportive use
architectural detailing
and materials.
4.3A: WINDOW TO WALL DETAILING: Window frames shall be recessed at least 2 inches from the exterior wall
face or have trim at least 3.5 inches wide on all four window sides. Stucco over foam shall not be used as
window trim.
4.3B: WINDOW PATTERNS: Window fenestration with divided lite appearance shall have exterior applied
muntin bars (i.e., true or simulated divided lites).
9.c
Packet Pg. 236
November 24, 2021 Page 9 of 11
IR Key
Point
IR Guideline Concept/
Key Point
SB-9 Objective Design Standards
4.3C: STUCCO TEXTURE: When stucco is used it shall be steel-troweled ‘Smooth’ or ‘Santa Barbara’ texture as
described in the Technical Services Information Bureau, Chapter 5 - Plaster Textures & Acrylic Finishes (2011).
For additions, stucco texture on the addition shall be allowed to match the stucco texture of the existing house.
4.3D: EXTERIOR MATERIALS IN EICHLER TRACTS: In mapped Eichler Tracts, exterior wall cladding shall be
vertical board channel or flush siding, wood tongue and groove board siding, wood nickel-gap siding, smooth
fiber cement panels, or metal panels. Board-form concrete, concrete block, or stucco may be used as a
secondary material but collectively these materials shall not account for more than 30 percent of all non-
glazed wall surfaces.
4.4 ENTRY TYPES: Avoid
monumental or over-
scaled entries that
stand out on the house
do not meet the
prevalent pattern of
entry scale or entry
type such as porch or
courtyard in the
neighborhood.
4.4A: CONTEXTUAL PORCH ENTRIES: If porches (i.e. roofed, street-facing porches with posts/column(s) and
more than 3 feet deep), occur on at least 50 percent of homes on the block of the subject lot (counting only
homes on the subject lot side of the street), the proposed house shall include a street-facing porch no less
than 6 feet deep and 8 feet wide.
4.4B: ENTRIES IN EICHLER TRACTS: In mapped Eichler Tracts an entry porch projecting forward of the front
wall of the house shall not be used. A recessed void at the facade or a courtyard entry may be used in lieu of
a porch. A covered trellis used as a colonnade or a side porch that does not project forward of the facade at
the entry would not be considered an entry porch.
4.5 GARAGE DOORS:
Garage door design
should reflect the
building architecture
and the garage and
garage door openings
and panels modest
scale relative to the
rest of the facade.
4.5A: GARAGE DOOR DESIGN AND MATERIALS: The garage door shall match the material, color, and panel
design pattern of the entry door or window fenestration.
4.5B: GARAGE DOOR SIZE: The maximum garage door width shall be 16 feet and the maximum garage door
height shall be 8 feet. If two single-wide garage doors are used instead of one double-wide door, each door's
maximum width shall be 9 feet and maximum height 8 feet.
9.c
Packet Pg. 237
November 24, 2021 Page 10 of 11
IR Key
Point
IR Guideline Concept/
Key Point
SB-9 Objective Design Standards
5.1 PRIVACY CONDITIONS:
Map existing and
proposed privacy
conditions.
5.1A: PRIVACY DIAGRAM: Site Privacy Diagram must show the proposed second-floor plan including windows,
major on-site vegetation, and all elements on the neighboring property within 25 feet of the subject property
line. For adjacent sites show major vegetation, building footprints, windows (indicate size and location), and
patios within 25 feet of the property lines shall be provided in the project plan set.
5.2 WINDOW
LOCATION/PRIVACY
TREATMENT: Locate
windows to reduce
privacy impacts and
mitigate impacts
elsewhere.
5.2A: BEDROOM WINDOW LOCATION: Organize the second-floor plan so at least one bedroom has its
largest/egress window facing the front lot line. On corner lots, at least one bedroom’s largest/egress window
shall also face the street side lot line.
5.2B: SECOND FLOOR WINDOW PRIVACY: For any window on an upper floor, facing an interior lot line that is
located less than 20 feet from a side lot line or less than 30 feet from a rear lot line, one of the following shall
be used:
(a) permanent obscure glazing, or
(b) exterior mounted permanent architectural privacy screens that block views more than 70%, or
(c) windows with sills above 5 feet from the finished floor level.
5.2C: STAIR WINDOW PRIVACY: Stair windows facing interior side lot lines within 20 feet of the lot line shall
have permanent obscure glazing or exterior mounted permanent architectural privacy screens to at least 5
feet above the landing.
5.2D: PRIVACY LANDSCAPE: Privacy screening landscape shall be located to align with proposed second floor
windows across side and rear lot lines and between windows at facing units on a single property. Privacy
screening landscape shall be evergreen and per size and planting standards shown in Standard 1.4.
5.3 WINDOW SIZE AND
OPERATION: Limiting
impacts through the
size and operation
(window type) of
operable windows.
5.3A: SECOND FLOOR WINDOW SIZE ALONG SIDE LOT LINES: Any upper-level window or window grouping
located less than 20 feet from a side interior lot line (measured perpendicularly) shall not have more than 30
square feet of glazing.
9.c
Packet Pg. 238
November 24, 2021 Page 11 of 11
IR Key
Point
IR Guideline Concept/
Key Point
SB-9 Objective Design Standards
5.3B: SECOND FLOOR OPERABLE WINDOWS ALONG SIDE LOT LINES: Operable casement windows on the upper
level with a sill height less than 5 feet above the finished floor and within 20 feet of an interior side lot line
shall be hinged so the windows open towards the public street. Horizontal sliding windows shall not be
permitted facing and within 20 feet of an interior side lot line, unless the windowsill height is at least 5 feet
above the finish floor level.
5.4 UPPER LEVEL DECKS &
BALCONIES: Only
permitted where they
would have minimum
privacy loss to side or
rear facing properties
under IR guidelines.
5.4A: SECOND FLOOR BALCONY LIMITATIONS: No more than one second floor deck/balcony shall be permitted
per dwelling and shall:
(a) only be permitted on a street facing facade,
(b) be located at least 20 feet from any interior side lot line, and
(c) be limited in size to no more than 40 square feet.
5.4B: ROOF DECK NOT PERMITTED: A roof deck (i.e., a deck above of the first level of a single-story building or
second level of a two-story building) shall not be permitted.
9.c
Packet Pg. 239
NOT YET ADOPTED
1
0160057_20211124_ay16
Ordinance No. ______
Interim Urgency Ordinance of the Council of the City of Palo Alto Modifying
Chapters 18.10 (Low-Density Residential, RE, R-2, and RMD Districts), 18.12 (R-1
Single-Family Residential District), 18.40 (General Standards and Exceptions), and
18.42 (Standard for Special Uses) of Title 18 (Zoning) and Adding Chapter 21.10
(Parcel Maps for Urban Lot Splits) of the Palo Alto Municipal Code to Implement
Recent State Housing Bills
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and declarations. The City Council finds and declares as follows:
A. On September 16, 2021, Governor Newsom signed into law Senate Bill 9 (SB 9), which
requires, among other things, that local agencies ministerially approve both two-unit
construction and urban lot splits on single-family zoned lots.
B. SB 9 authorizes the creation of lots as small as 1,200 square feet, and requires approval
of two residential units of at least 800 square feet (for a total of 1,600 square feet) each
on such lots. This represents a significant departure from existing minimum lot sizes
and development standards in Palo Alto’s single-family zones.
C. The increased density and intensity of development authorized by SB 9 has the potential
to negatively impact privacy, access for emergency vehicles, and aesthetics of
residential neighborhoods. In addition, the ministerial review required by SB 9 could
result in the unintentional loss of historic resources in Palo Alto’s single family zones.
D. SB 9 authorizes local jurisdictions to apply objective zoning standards, objective
subdivision standards, and objective design standards, subject to certain limitations in
statute.
E. There is insufficient time for consideration of and recommendation on such objective
standards and related code amendments by the Planning and Transportation
Commission (PTC) prior to action by the City Council. The Council therefore declares
that an interim ordinance, pursuant to Palo Alto Municipal Code (PAMC) Section
18.80.090 is an appropriate measure to adopt standards, pending consideration of a
permanent ordinance by the PTC.
F. The Council declares that this interim, emergency ordinance, which is effective
immediately, is necessary as an emergency measure to preserve the public peace,
health, or safety, by adopting objective standards for the approval of two-unit
development and urban lot splits on single-family zoned lots and related code
amendments prior to SB 9 taking effect on January 1, 2022.
9.d
Packet Pg. 240
NOT YET ADOPTED
2
0160057_20211124_ay16
SECTION 2. Section 18.10.020 (Applicable Regulations) of Chapter 18.10 (Low-Density
Residential (RE, R-2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is
amended to read as follows (new text underlined and deletions struck-through):
18.10.020 Applicable Regulations
The specific regulations of this chapter and the additional regulations and procedures
established by Chapters 18.52 to 18.80 inclusive shall apply to all low-density residential
districts. Such regulations shall apply to construction of two units on an RE-zoned lot pursuant
to California Government Code Section 65852.21 (SB 9, 2021), except as modified by Section
18.42.180.
SECTION 3. Section 18.10.030 (Land Uses) of Chapter 18.10 (Low-Density Residential (RE, R-2
and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as
follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for
large sections of unchanged text):
18.10.030 Land Uses
Table 1 shows the permitted and conditionally permitted uses for the low-density residential
districts.
TABLE 1
PERMITTED AND CONDITIONALLY PERMITTED LOW-DENSITY RESIDENTIAL USES
[P = Permitted Use -- CUP = Conditional Use Permit Required]
RE R-2 RMD Subject to
Regulations in:
[. . .] [. . .] [. . .] [. . .] [. . .]
RESIDENTIAL USES
Single-Family P P P
Two-Family use, under one ownership P (4) P P
Mobile Homes P P P 18.42.100
Residential Care Homes P P P
[. . .] [. . .] [. . .] [. . .] [. . .]
P = Permitted Use CUP = Conditional Use Permit
Required
Footnotes:
(1) Sale of Agricultural Products: No permanent commercial structures for the sale or
processing of agricultural products are permitted.
(2) Accessory Dwelling Units in R-2 and RMD Zones: An accessory dwelling unit or a Junior
Accessory Dwelling Unit associated with a single-family residence on a lot in the R-2 or RMD
9.d
Packet Pg. 241
NOT YET ADOPTED
3
0160057_20211124_ay16
zones is permitted, subject to the provisions of Section 18.42.040, and such that no more than
two units result on the lot.
(3) Bed and Breakfast Inns: Bed and breakfast inns are limited to no more than 4 units
(including the owner/resident's unit) in the RMD district.
(4) Two Unit Development Pursuant to California Government Code Section 65852.21 (SB 9,
2021): Construction of two units is permitted on an RE-zoned lot, subject to the regulations in
Section 18.42.180.
SECTION 4. Section 18.10.040 (Development Standards) of Chapter 18.10 (Low-Density
Residential (RE, R-2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is
amended to read as follows (new text underlined and deletions struck-through; omissions are
noted with [. . .] for large sections of unchanged text):
18.10.040 Development Standards
(a) Site Specifications, Building Size, Height and Bulk, and Residential Density
The development standards for the low-density residential districts are shown in Table 2:
TABLE 2
LOW-DENSITY RESIDENTIAL DEVELOPMENT STANDARDS R-E (6) R-2 RMD Subject to Regulations
in:
[. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
(1) Minimum Lot Size: Any lot less than the minimum lot size may be used in accordance with
the provisions of Chapter 18.40.
(2) R-2 Floodzone Heights: Provided, in a special flood hazard area as defined in Chapter
16.52, the maximum heights are increased by one-half of the increase in elevation required to
reach base flood elevation, up to a maximum building height of 33 feet.
(3) R-2 Floodzone Daylight Plane: Provided, if the site is in a special flood hazard area and is
entitled to an increase in the maximum height, the heights for the daylight planes shall be
adjusted by the same amount.
(4) Exemption from Floor Area for Covered Parking Required for Two-Family Uses: In the R-2
and RMD districts, for two-family uses, floor area limits may be exceeded by a maximum of two
hundred square feet, for purposes of providing one required covered parking space.
(5) Maximum House Size: The gross floor area of attached garages and attached accessory
dwelling units and junior accessory dwelling units are included in the calculation of maximum
house size. If there is no garage attached to the house, then the square footage of one detached
covered parking space shall be included in the calculation. This provision applies only to single-
family residences, not to duplexes allowed in the R-2 and RMD districts.
9.d
Packet Pg. 242
NOT YET ADOPTED
4
0160057_20211124_ay16
(6) Two Unit Development Pursuant to California Government Code Section 65852.21 (SB 9,
2021): Construction of two units on an RE-zoned lot shall be subject to the development
standards in this Section 18.10.040, except as modified by Section 18.42.180.
[. . .]
SECTION 5. Table 3 (PARKING REQUIREMENTS FOR R-E, R-2 AND RMD USES) of Section
18.10.060 (Parking) of Chapter 18.10 (Low-Density Residential (RE, R-2 and RMD) Districts) of
Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text
underlined and deletions struck-through; omissions are noted with [. . .] for large sections of
unchanged text):
[. . .]
TABLE 3
PARKING REQUIREMENTS FOR R-E, R-2 AND RMD USES
Use Minimum Off-Street Parking Requirement
Single-family residential use (excluding
accessory dwelling units)
2 spaces per unit, of which one must be covered.
Two family in the RE district, pursuant to
California Government Code Section
65852.21 (SB 9, 2021)
1 space per unit. No spaces required if located within
one-half mile walking distance of either a high-
quality transit corridor or a major transit stop, or
located within one block of a car share vehicle.
Two family (R2 & RMD districts) 3 spaces total, of which at least two must be covered
Accessory dwelling unit, attached or
detached:
No parking required
Junior accessory dwelling unit No parking required
Other Uses See Chapter 18.40
[. . .]
SECTION 6. Section 18.10.070 (Accessory and Junior Accessory Dwelling Units) of Chapter
18.10 (Low-Density Residential (RE, R-2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto
Municipal Code is amended to read as follows (new text underlined and deletions struck-
through):
18.10.070 Accessory and Junior Accessory Dwelling Units
Accessory Dwelling Units and Junior Accessory Dwelling Units are subject to the regulations
set forth in Chapter 18.09 Section 18.42.040.
9.d
Packet Pg. 243
NOT YET ADOPTED
5
0160057_20211124_ay16
SECTION 7. Section 18.12.020 (Applicable Regulations) of Chapter 18.12 (R-1 Single Family
Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as
follows (new text underlined and deletions struck-through):
18.12.020 Applicable Regulations
The specific regulations of this chapter and the additional regulations and procedures
established by Chapters 18.52 to 18.80 inclusive shall apply to the R-1 district including the R-1
subdistricts. Such regulations shall apply to construction of two units on an R1-zoned lot
pursuant to California Government Code Section 65852.21 (SB 9), except as modified by Section
18.42.180.
SECTION 8. Section 18.12.030 (Land Uses) of Chapter 18.12 (R-1 Single Family Residential
District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new
text underlined and deletions struck-through; omissions are noted with [. . .] for large sections
of unchanged text):
18.12.030 Land Uses
The permitted and conditionally permitted uses for the single family residential districts are
shown in Table 1:
Table 1
PERMITTED AND CONDITIONAL R-1 RESIDENTIAL USES
R-1 and all R-1
Subdistricts
Subject to
Regulations in:
[. . .] [. . .] [. . .]
RESIDENTIAL USES
Single-Family P
Two-Family use, under one ownership P 18.42.180
Mobile Homes P 18.42.100
Residential Care Homes P
[. . .] [. . .] [. . .]
P = Permitted Use CUP = Conditional Use Permit Required
SECTION 9. Section 18.12.040 (Site Development Standards) of Chapter 18.12 (R-1 Single
Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to
read as follows (new text underlined and deletions struck-through; omissions are noted with [. .
.] for large sections of unchanged text):
9.d
Packet Pg. 244
NOT YET ADOPTED
6
0160057_20211124_ay16
18.12.040 Site Development Standards
(a) Site Specifications, Building Size, Height and Bulk, and Residential Density
The development standards for the R-1 district and the R-1 subdistricts are shown in Table 2,
except to the extend such standards may be modified by Section 18.42.180 for two-family uses
pursuant to California Government Code Section 65852.21 (SB 9, 2021):
[. . .]
SECTION 10. Section 18.12.060 (Parking) of Chapter 18.12 (R-1 Single Family Residential
District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new
text underlined and deletions struck-through; omissions are noted with [. . .] for large sections
of unchanged text):
18.12.060 Parking
Off-street parking and loading facilities shall be required for all permitted and conditional uses
in accord with Chapters 18.52 and 18.54 of this title. The following parking requirements apply
in the R- 1 districts. These requirements are included for reference purposes only, and in the
event of a conflict between this Section 18.12.060 and any requirement of
Chapters 18.52 and 18.54, Chapters 18.52 and 18.54 shall apply, except in the case of parcels
created pursuant to Section 18.10.140(c) (subdivision incentive for historic preservation).
(a) Parking Requirements for Specific Uses
Table 4 shows the minimum off-street automobile parking requirements for specific uses
within the R-1 district.
Table 4
Parking Requirements for Specific R-1 Uses
Use Minimum Off-Street Parking Requirement
Single-family residential use (excluding
accessory dwelling units)
2 spaces per unit, of which one must be
covered.
Two family use pursuant to California
Government Code Section 65852.21 (SB 9,
2021)
1 space per unit. No spaces required if
located within one-half mile walking distance
of either a high-quality transit corridor or a
major transit stop, or located within one
block of a car share vehicle.
Accessory dwelling unit, attached or detached No parking required
Junior accessory dwelling unit No parking required
Other Uses See Chs. 18.52 and 18.54
9.d
Packet Pg. 245
NOT YET ADOPTED
7
0160057_20211124_ay16
[. . .]
SECTION 11. Section 18.12.070 (Accessory and Junior Accessory Dwelling Units) of Chapter
18.12 (R-1 Single Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code
is amended to read as follows (new text underlined and deletions struck-through):
18.12.070 Accessory and Junior Accessory Dwelling Units
Accessory Dwelling Units and Junior Accessory Dwelling Units are subject to the regulations
set forth in Chapter 18.09 Section 18.42.040.
SECTION 12. Section 18.40.160 (Replacement Project or Discretionary Review Required) of
Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the Palo Alto
Municipal Code is amended to read as follows (new text underlined and deletions struck-
through):
18.40.160 Replacement Project or Discretionary Review Required
(a) No permit required under Title 2 (Administrative Code), Title 12 (Public Works and
Utilities), or Title 16 (Building Regulations) shall be issued for demolition or deconstruction of a
single family residence or duplex in the Low-Density Residential District (Chapter 18.10) or
Single Family Residential District (Chapter 18.12), except for deconstruction pursuant to
Section 16.14.130 or where necessary for health and safety purposes (as determined by the
City's Building Official), unless building permit plans for a replacement project have been
approved. This subsection shall also apply to demolition of a single family residence or duplex in
the Multiple Family Residential District (Chapter 18.13) when the replacement project does not
require discretionary review.
(b) No permit required under Title 2 (Administrative Code), Title 12 (Public Works and
Utilities), or Title 16 (Building Regulations) shall be issued for any project requiring discretionary
review under Title 18 or Title 21, unless the application for discretionary review has been
approved.
SECTION 13. Section 18.52.020 (Definitions) of Chapter 18.52 (Parking and Loading
Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as
follows:
18.52.020 Definitions
For purposes of this chapter:
[. . .]
9.d
Packet Pg. 246
NOT YET ADOPTED
8
0160057_20211124_ay16
(h) “Within one block of a car share vehicle” means within 600 feet of a parking space
permanently reserved for use by a car share vehicle.
(h)(i) Definitions for other parking-related terms can be found in Section 18.04.030(a)
(Definitions), including “Parking as a principal use,” “Parking facility,” and “Parking
space.”
SECTION 14. Table 1 (Minimum Off-Street Parking Requirements of Section 18.52.040 (Off-
Street Parking, Loading, and Bicycle Facility Requirements) of Chapter 18.52 (Parking and
Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read
as follows:
18.52.040 Off-Street Parking, Loading and Bicycle Facility Requirements
[. . .]
Table 1
Minimum Off-Street Parking Requirements
Use Vehicle Parking
Requirement
(# of spaces)
Bicycle Parking
Requirement
Spaces Class 1 Long
Term (LT)
and Short
Term (ST)
RESIDENTIAL USES
[. . .] [. . .] [. . .] [. . .]
Two-Family Residential
(R-2 & RMD Districts)
1.5 spaces per unit, of which at
least one space per unit must
be covered
Tandem Parking Allowed, with
one tandem space per unit,
associated directly with
another parking space for the
same unit
1 space
per unit
100% - LT
(R-1 and RE Districts,
pursuant to Section
18.42.180)
At least one space per unit. No
spaces required if the unit is
located within one-half mile
walking distance of either a
high-quality transit corridor or
a major transit stop, as defined
1 space
per unit
100% - LT
9.d
Packet Pg. 247
NOT YET ADOPTED
9
0160057_20211124_ay16
in California Public Resources
Code Sections 21155 and
21064.3 respectively, or
located within one block of a
car share vehicle.
[. . .] [. . .] [. . .] [. . .]
[. . .]
SECTION 15. Section 18.42.180 (Interim Standards for Two Units on Single Family Zoned Lots
Pursuant to Senate Bill 9) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of
the Palo Alto Municipal Code is added to read as follows:
18.42.180 Interim Standards for Two Units on Single Family Zoned Lots Pursuant to
Senate Bill 9 (2021).
(a) Purpose. This section sets forth special regulations applicable to the construction of two
dwelling units on single family lots in the R-1 (and R-1 subdistricts) and R-E zone districts,
pursuant to California Government Code Sections 65852.21 and 66411.7 (SB 9, 2021). In the
event of a conflict between the provisions of this section and the generally applicable
regulations of Chapters 18.10, 18.12, and 18.52-18.80, inclusive, the provisions of this section
shall prevail.
(b) Definitions. As used in this section:
(1) “Specific, adverse impact” means a significant, quantifiable, direct, and
unavoidable impact, based on objective, identified written public health or
safety or physical environmental standards, policies, or conditions as they
existed on the date the application was deemed complete. Inconsistency with
the zoning ordinance or general plan land use designation shall not constitute a
specific, adverse, impact.
(2) “Sufficient to allow separate conveyance” means the two dwelling units
constitute clearly defined, separate, and independent housekeeping units
without interior access points to the other dwelling unit.
(3) “Two dwelling units” means the development proposes two new units on a
vacant lot or proposes to add one new unit to one existing unit on a lot. This
does not include the development of a single dwelling unit on a vacant lot.
(4) “Unit” means any dwelling unit, including, but not limited to a primary dwelling
unit, an accessory dwelling unit, or a junior accessory dwelling unit.
(c) Applicability. When an application is submitted that includes both (1) the construction
of two dwelling units under this section and (2) other redevelopment work that is not integral
9.d
Packet Pg. 248
NOT YET ADOPTED
10
0160057_20211124_ay16
to creation of a new dwelling unit and would generally require discretionary review, only the
portions required for construction of dwelling units shall be reviewed ministerially. In addition,
this section shall not apply in any of the following circumstances:
(1) Parcels described California Government Code Section 65913.4, subdivisions
(a)(6)(B) through (a)(6)(K) inclusive. Such parcels include, for example, parcels
located in wetlands, in very high fire severity zones (unless the site has adopted
certain fire hazard mitigation measures), and in special flood hazard areas or
regulatory floodways (unless the site meets certain federal requirements for
development).
(2) Parcels on which an owner of residential real property has exercised the owner’s
rights under state law to withdraw accommodations from rent or lease within
the past 15 years.
(3) The development would require alteration or demolition of any of the following
types of housing
(A) Housing that is subject to a recorded covenant, ordinance, or law that
restricts rents to levels affordable to persons and families of moderate,
low, or very low income.
(B) Housing that is subject to any form of rent or price control through a
public entity’s valid exercise of its police power.
(C) Housing that has been occupied by a tenant in the last three years.
(4) The development would result in the demolition of more than 25 percent of the
existing exterior structural walls of a site that has been occupied by a tenant in
the last three years.
(5) The development is located within a historic district or property included on the
State Historic Resources Inventory, as defined in California Public Resources
Code Section 5020.1, or within a site that is designated or listed on the City’s
historic inventory.
(6) The building official finds that the development would have a specific, adverse
impact on public health and safety or the physical environment that cannot be
feasibly mitigated or avoided.
(d) Application Process.
(1) The Director is authorized to promulgate regulations, forms, and/or checklists
setting forth application requirements for the development of dwelling units
under this section.
(2) The City shall ministerially approve or disapprove an application pursuant to this
section.
(e) Development Standards.
(1) A project proposing two dwelling units on a parcel in the R-1 or RE districts shall
be subject to the development standards set forth in Chapters 18.12 and 18.10,
respectively except as provided herein.
(2) All construction pursuant to this section shall comply with objective design
standards adopted by the City Council. However, an applicant seeking to deviate
9.d
Packet Pg. 249
NOT YET ADOPTED
11
0160057_20211124_ay16
from the objective design standards (except to the extent necessary to construct
a unit of 800 square feet) may elect to submit an application under the base
requirements of Chapters 18.10, or 18.12, including, if applicable, Single Family
Individual Review.
(3) If the application of any development standard or design standard would
necessarily require that one or more proposed units be less than 800 square
feet, such standard shall be relaxed to the minimum extent necessary to allow
construction of a unit or units of at least 800 square feet. The Director may
publish regulations governing the order in which objective standards shall be
waived or relaxed in such circumstances.
(4) Setbacks from side and rear property lines, including street-side property lines,
shall be no less than four feet, except in the case of existing non-complying
structures or structures reconstructed in the same location and to the same
dimensions as an existing structure, in which case existing setbacks less than four
feet may be maintained.
(5) Off-street parking shall be provided pursuant to Chapters 18.52 and 18.54.
(6) In the event that a project is proposed on a site that has been subject to an
Urban Lot Split under Chapter 21.10, and the project would result in three or
more detached units across the two parcels created by the urban lot split, any
new units shall not exceed 800 square feet.
(7) Accessory structures, such as garages and shed are permitted consistent with the
provisions of the zoning district; however, no accessory structure shall have a
floor area exceeding 500 square feet.
(f) General Requirements.
(1) A maximum of two units may be located on any parcel that is created by an
Urban Lot Split under Chapter 21.10. Accessory dwelling units and junior
accessory dwelling units shall not be permitted on any such parcel already
containing two units.
(2) On parcels that are not the result of an Urban Lot Split under Chapter 21.10,
accessory dwelling units may be proposed in addition to the primary dwelling
unit or units, consistent with Chapter 18.09, provided, however, that ADUs
associated with projects proceeding under this Section shall not receive any
exemption from Floor Area Ratio except to the minimum extent required by
California Government Code Section 65852.2.
(3) A rental of any unit created pursuant to this Section shall be for a term longer
than 30 consecutive days.
(4) For residential units connected to an onsite wastewater treatment system, a
percolation test completed within the last 5 years, or, if the percolation test has
been recertified, within the last 10 years.
(5) Each unit shall have a permanent street address.
(6) The owner and all successors in interest in the subject property shall agree to
participate in any City survey of properties that have constructed dwelling units
pursuant to this Section.
9.d
Packet Pg. 250
NOT YET ADOPTED
12
0160057_20211124_ay16
(g) Effective Dates. This section shall remain in effect until such time as Government Code
Section 65852.21 is repealed or superseded or its requirements for ministerial approval of no
more than two units on a single family zoned lot are materially amended, whether by
legislation or initiative, at which time this section shall become null and void.
SECTION 16. Chapter 21.10 (Urban Lot Splits) of Title 21 (Subdivisions and Other Divisions of
land) of the Palo Alto Municipal Code is added to read as follows:
Chapter 21.10
PARCEL MAPS FOR URBAN LOT SPLITS IN SINGLE-FAMILY ZONES
Section 21.10.010 Purpose
Section 21.10.020 Definitions
Section 21.10.030 Applicability
Section 21.10.040 Requirements
Section 21.10.050 Filing of Urban Lot Split Application
Section 21.10.060 Effective dates
Section 21.10.010 Purpose
This chapter sets forth special regulations applicable to the subdivision of a single family lot in
the R-1 district (and R-1 subdistricts) or R-E district into two new lots, pursuant to California
Government Code Section 66411.7 (SB 9, 2021).
Section 21.10.020 Definitions
As used in this chapter:
(a) “Acting in concert” means pursuing a shared goal to split adjacent lots pursuant to an
agreement or understanding, whether formal or informal.
(b) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable
impact, based on objective, identified written public health or safety or physical
environmental standards, policies, or conditions as they existed on the date the
application was deemed complete. Inconsistency with the zoning ordinance or general
plan land use designation shall not constitute a specific, adverse, impact.
(c) “Unit” means any dwelling unit, including, but not limited to, a unit or units created
pursuant to Section 18.42.180, a primary dwelling unit, an accessory dwelling unit, or a
junior accessory dwelling unit.
(d) “Urban Lot Split” means the subdivision of an existing legal parcel in the R-1 district (and
R-1 subdistricts) or R-E district to create no more than two new parcels of approximately
equal area, pursuant to this Chapter and California Government Code Section 66411.7.
Section 21.10.030 Applicability
The provisions of this chapter shall apply only to lots in the R-1 district (and R-1 subdistricts) or
R-E zone district. An Urban Lot Split is not available in any of the following circumstances:
9.d
Packet Pg. 251
NOT YET ADOPTED
13
0160057_20211124_ay16
(a) A parcel described California Government Code Section 65913.4, subdivisions (a)(6)(B)
through (a)(6)(K) inclusive. Such parcels include, for example, parcels located in
wetlands, in very high fire severity zones (unless the site has adopted certain fire hazard
mitigation measures), and in special flood hazard areas or regulatory floodways (unless
the site meets certain federal requirements for development).
(b) A parcel on which an owner of residential real property has exercised the owner’s rights
under state law to withdraw accommodations from rent or lease within the past 15
years.
(c) A parcel that was created by prior exercise of an Urban Lot Split.
(d) A parcel adjacent to a parcel that was created by prior exercise of an Urban Lot Split by
the owner, or a person acting in concert with the owner of the parcel sought to be split.
(e) The Urban Lot Split would require alteration or demolition of any of the following types
of housing
(1) Housing that is subject to a recorded covenant, ordinance, or law that restricts
rents to levels affordable to persons and families of moderate, low, or very low
income.
(2) Housing that is subject to any form of rent or price control through a public
entity’s valid exercise of its police power.
(3) Housing that has been occupied by a tenant in the last three years.
(f) The Urban Lot Split is located within a historic district or property included on the State
Historic Resources Inventory, as defined in California Public Resources Code Section
5020.1, or within a site that is designated or listed on the City’s historic inventory.
(g) The building official finds that the development would have a specific, adverse impact
on public health and safety or the physical environment that cannot be feasibly
mitigated or avoided.
Section 21.10.040 General Requirements
(a) The minimum size for a parcel created by an Urban Lot Split is 1,200 square feet.
(b) The lots created by an Urban Lot Split must be of approximately equal area, such that no
resulting parcel shall be smaller than 40 percent of the lot area of the original parcel
proposed for subdivision.
(c) Each parcel created by an Urban Lot Split shall adjoin the public right of way by means
of a minimum fifteen foot street frontage.
(d) Where existing dwelling units on the property are to remain, no lot line may be created
under this Chapter in a manner that would bisect any structure or that would result in
more than two dwelling units on any resulting parcel.
(e) Each parcel shall comply with any objective lot design standards for Urban Lot Splits
adopted by the City Council.
(f) The Director of Planning shall determine the appropriate fee required for an application
for parcel map for an Urban Lot Split, which may be the fee currently established for a
Preliminary Parcel Map or Parcel Map.
9.d
Packet Pg. 252
NOT YET ADOPTED
14
0160057_20211124_ay16
Section 21.10.050 Application and Review of an Urban Lot Split
(a) The director of planning is authorized to promulgate regulations, forms, and/or
checklists setting forth application requirements for a parcel map for an Urban Lot Split
under this Chapter. An application shall include an affidavit from the property owner,
signed under penalty of perjury under the laws of California, that:
(1) The proposed urban lot split would not require or authorize demolition or
alteration of any of the housing described in Section 21.10.030, subdivision (e).
(2) The proposed urban lot split is not on a parcel described in Section 21.10.030.
(3) The owner intends to occupy one of the housing units located on a lot created by
the parcel map as their principal residence for a minimum of three years from
the date of the recording of the parcel map.
(4) The rental of any unit on the property shall be for a term longer than 30
consecutive days.
(5) The resulting lots will be for residential uses only.
(b) A parcel map for an Urban Lot Split must be prepared by a registered civil engineer or
licensed land surveyor in accordance with Government Code sections 66444 – 66450
and this Chapter. Unless more specific regulations are adopted by the director of
planning, the parcel map shall be in the form and include all of the information required
of a Preliminary Parcel Map by Chapter 21.12, as well as any additional information
required of a Parcel Map by Chapter 21.16. In addition, the face of the Parcel Map shall
contain a declaration that:
(1) Each lot created by the parcel map shall be used solely for residential dwellings.
(2) That no more than two dwelling units may be permitted on each lot.
(3) That rental of any dwelling unit on a lot created by the parcel map shall be for a
term longer than 30 consecutive days.
(4) A lot created by a parcel map under this Chapter shall not be further subdivided.
(c) Upon receipt of a parcel map for an Urban Lot Split, the director of planning shall
transmit copies to the city engineer, chief building official, director of utilities, chief of
police, fire chief, director of transportation, and such other departments of the city, and
any other agencies, as may be required by law or deemed appropriate.
(d) The director of planning shall cause a notice of the pending application to be posted at
the site of the proposed Urban Lot Split and for notice to be mailed to owners and
residents of property within 600 feet of the property.
(e) The director of planning shall ministerially review and approve a parcel map for Urban
Lot Split if they determine that the parcel map application meets all requirements of this
Chapter. The director of planning shall deny a parcel map application that does not
meet any requirement of this Chapter.
Section 21.10.060 Effective Dates.
This chapter shall remain in effect until such time as Government Code Section 66411.7 is
repealed or superseded or its requirements for ministerial approval of an Urban Lot Split on a
single family zoned lot are materially amended, whether by legislation or initiative, at which
time this chapter shall become null and void.
9.d
Packet Pg. 253
NOT YET ADOPTED
15
0160057_20211124_ay16
SECTION 17. If any section, subsection, clause or phrase of this Ordinance is for any reason held
to be invalid, such decision shall not affect the validity of the remaining portion or sections of the
Ordinance. The Council hereby declares that it should have adopted the Ordinance and each
section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid.
SECTION 18. The City Council finds that this Ordinance is statutorily exempt from the
requirements of the California Environmental Quality Act (CEQA) for the following reasons.
Under Government Code Sections 66411.7(n) and 65852.21(j), an ordinance adopted to
implement the requirements of SB 9 shall not be considered a project under CEQA.
SECTION 19. This ordinance shall be effective immediately upon adoption and shall remain in
effect until superseding legislation is adopted by the City Council or December 31, 2022,
whichever occurs sooner. The Clerk is authorized to direct the City’s codifier to revert any
changes created by this ordinance upon its expiration.
INTRODUCED and PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning
and Development Services
9.d
Packet Pg. 254
NOT YET ADOPTED
1
0160058_20211124_ay16
Ordinance No. ______
Interim Ordinance of the Council of the City of Palo Alto Modifying Chapters 18.10
(Low‐Density Residential, RE, R‐2, and RMD Districts), 18.12 (R‐1 Single‐Family
Residential District), 18.13 (Multiple Family Residential, RM20, RM30, RM40), 18.16
(Commercial Districts, CN, CC, CS), 18.18 (Downtown Commercial, CD‐C, CD‐S, CD‐
N), 18.40 (General Standards and Exceptions), and 18.42 (Standard for Special Uses)
of Title 18 (Zoning) and Adding Chapter 21.10 (Parcel Maps for Urban Lot Splits) of
the Palo Alto Municipal Code to Implement Recent State Housing Bills
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and declarations. The City Council finds and declares as follows:
A. On September 16, 2021, Governor Newsom signed into law Senate Bill 9 (SB 9), which
requires, among other things, that local agencies ministerially approve both two‐unit
construction and urban lot splits on single‐family zoned lots.
B. SB 9 authorizes the creation of lots as small as 1,200 square feet, and requires approval
of two residential units of at least 800 square feet (for a total of 1,600 square feet) each
on such lots. This represents a significant departure from existing minimum lot sizes
and development standards in Palo Alto’s single‐family zones.
C. The increased density and intensity of development authorized by SB 9 has the potential
to negatively impact privacy, access for emergency vehicles, and aesthetics of
residential neighborhoods. In addition, the ministerial review required by SB 9 could
result in the unintentional loss of historic resources in Palo Alto’s single family zones.
D. SB 9 authorizes local jurisdictions to apply objective zoning standards, objective
subdivision standards, and objective design standards, subject to certain limitations in
statute.
E. On September 16, 2021, Governor Newsom signed into law Senate Bill 478 (SB 478),
which requires, among other things, that local agencies provide specified minimum floor
area ratios for housing development projects containing 3 to 10 dwelling units.
F. There is insufficient time for consideration of and recommendation on objective
standards related to SB 9, code amendments related to SB 478, and associated code
amendments to Title 18 by the Planning and Transportation Commission (PTC) prior to
action by the City Council. The Council therefore declares that an interim ordinance,
pursuant to Palo Alto Municipal Code (PAMC) Section 18.80.090 is an appropriate
measure to adopt standards, pending consideration of a permanent ordinance by the
PTC.
9.e
Packet Pg. 255
NOT YET ADOPTED
2
0160058_20211124_ay16
SECTION 2. Section 18.10.020 (Applicable Regulations) of Chapter 18.10 (Low‐Density
Residential (RE, R‐2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is
amended to read as follows (new text underlined and deletions struck‐through):
18.10.020 Applicable Regulations
The specific regulations of this chapter and the additional regulations and procedures
established by Chapters 18.52 to 18.80 inclusive shall apply to all low‐density residential
districts. Such regulations shall apply to construction of two units on an RE‐zoned lot pursuant
to California Government Code Section 65852.21 (SB 9, 2021), except as modified by Section
18.42.180.
SECTION 3. Section 18.10.030 (Land Uses) of Chapter 18.10 (Low‐Density Residential (RE, R‐2
and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as
follows (new text underlined and deletions struck‐through; omissions are noted with [. . .] for
large sections of unchanged text):
18.10.030 Land Uses
Table 1 shows the permitted and conditionally permitted uses for the low‐density residential
districts.
TABLE 1
PERMITTED AND CONDITIONALLY PERMITTED LOW‐DENSITY RESIDENTIAL USES
[P = Permitted Use ‐‐ CUP = Conditional Use Permit Required]
RE R‐2 RMD Subject to
Regulations in:
[. . .] [. . .] [. . .] [. . .] [. . .]
RESIDENTIAL USES
Single‐Family P P P
Two‐Family use, under one ownership P (4) P P
Mobile Homes P P P 18.42.100
Residential Care Homes P P P
[. . .] [. . .] [. . .] [. . .] [. . .]
P = Permitted Use CUP = Conditional Use Permit
Required
Footnotes:
(1) Sale of Agricultural Products: No permanent commercial structures for the sale or
processing of agricultural products are permitted.
9.e
Packet Pg. 256
NOT YET ADOPTED
3
0160058_20211124_ay16
(2) Accessory Dwelling Units in R‐2 and RMD Zones: An accessory dwelling unit or a Junior
Accessory Dwelling Unit associated with a single‐family residence on a lot in the R‐2 or RMD
zones is permitted, subject to the provisions of Section 18.42.040, and such that no more than
two units result on the lot.
(3) Bed and Breakfast Inns: Bed and breakfast inns are limited to no more than 4 units
(including the owner/resident's unit) in the RMD district.
(4) Two Unit Development Pursuant to California Government Code Section 65852.21 (SB 9,
2021): Construction of two units is permitted on an RE‐zoned lot, subject to the regulations in
Section 18.42.180.
SECTION 4. Section 18.10.040 (Development Standards) of Chapter 18.10 (Low‐Density
Residential (RE, R‐2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is
amended to read as follows (new text underlined and deletions struck‐through; omissions are
noted with [. . .] for large sections of unchanged text):
18.10.040 Development Standards
(a) Site Specifications, Building Size, Height and Bulk, and Residential Density
The development standards for the low‐density residential districts are shown in Table 2:
TABLE 2
LOW‐DENSITY RESIDENTIAL DEVELOPMENT STANDARDS
R‐E (6) R‐2 RMD Subject to Regulations
in:
[. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
(1) Minimum Lot Size: Any lot less than the minimum lot size may be used in accordance with
the provisions of Chapter 18.40.
(2) R‐2 Floodzone Heights: Provided, in a special flood hazard area as defined in Chapter
16.52, the maximum heights are increased by one‐half of the increase in elevation required to
reach base flood elevation, up to a maximum building height of 33 feet.
(3) R‐2 Floodzone Daylight Plane: Provided, if the site is in a special flood hazard area and is
entitled to an increase in the maximum height, the heights for the daylight planes shall be
adjusted by the same amount.
(4) Exemption from Floor Area for Covered Parking Required for Two‐Family Uses: In the R‐2
and RMD districts, for two‐family uses, floor area limits may be exceeded by a maximum of two
hundred square feet, for purposes of providing one required covered parking space.
(5) Maximum House Size: The gross floor area of attached garages and attached accessory
dwelling units and junior accessory dwelling units are included in the calculation of maximum
house size. If there is no garage attached to the house, then the square footage of one detached
covered parking space shall be included in the calculation. This provision applies only to single‐
family residences, not to duplexes allowed in the R‐2 and RMD districts.
9.e
Packet Pg. 257
NOT YET ADOPTED
4
0160058_20211124_ay16
(6) Two Unit Development Pursuant to California Government Code Section 65852.21 (SB 9,
2021): Construction of two units on an RE‐zoned lot shall be subject to the development
standards in this Section 18.10.040, except as modified by Section 18.42.180.
[. . .]
SECTION 5. Table 3 (PARKING REQUIREMENTS FOR R‐E, R‐2 AND RMD USES) of Section
18.10.060 (Parking) of Chapter 18.10 (Low‐Density Residential (RE, R‐2 and RMD) Districts) of
Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text
underlined and deletions struck‐through; omissions are noted with [. . .] for large sections of
unchanged text):
[. . .]
TABLE 3
PARKING REQUIREMENTS FOR R‐E, R‐2 AND RMD USES
Use Minimum Off‐Street Parking Requirement
Single‐family residential use (excluding
accessory dwelling units)
2 spaces per unit, of which one must be covered.
Two family in the RE district, pursuant to
California Government Code Section
65852.21 (SB 9, 2021)
1 space per unit. No spaces required if located within
one‐half mile walking distance of either a high‐
quality transit corridor or a major transit stop, or
located within one block of a car share vehicle.
Two family (R2 & RMD districts) 3 spaces total, of which at least two must be covered
Accessory dwelling unit, attached or
detached:
No parking required
Junior accessory dwelling unit No parking required
Other Uses See Chapter 18.40
[. . .]
SECTION 6. Section 18.10.070 (Accessory and Junior Accessory Dwelling Units) of Chapter
18.10 (Low‐Density Residential (RE, R‐2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto
Municipal Code is amended to read as follows (new text underlined and deletions struck‐
through):
18.10.070 Accessory and Junior Accessory Dwelling Units
Accessory Dwelling Units and Junior Accessory Dwelling Units are subject to the regulations
set forth in Chapter 18.09 Section 18.42.040.
9.e
Packet Pg. 258
NOT YET ADOPTED
5
0160058_20211124_ay16
SECTION 7. Section 18.12.020 (Applicable Regulations) of Chapter 18.12 (R‐1 Single Family
Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as
follows (new text underlined and deletions struck‐through):
18.12.020 Applicable Regulations
The specific regulations of this chapter and the additional regulations and procedures
established by Chapters 18.52 to 18.80 inclusive shall apply to the R‐1 district including the R‐1
subdistricts. Such regulations shall apply to construction of two units on an R1‐zoned lot
pursuant to California Government Code Section 65852.21 (SB 9), except as modified by Section
18.42.180.
SECTION 8. Section 18.12.030 (Land Uses) of Chapter 18.12 (R‐1 Single Family Residential
District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new
text underlined and deletions struck‐through; omissions are noted with [. . .] for large sections
of unchanged text):
18.12.030 Land Uses
The permitted and conditionally permitted uses for the single family residential districts are
shown in Table 1:
Table 1
PERMITTED AND CONDITIONAL R‐1 RESIDENTIAL USES
R‐1 and all R‐1
Subdistricts
Subject to Regulations in:
[. . .] [. . .] [. . .]
RESIDENTIAL USES
Single‐Family P
Two‐Family use, under one ownership P 18.42.180
Mobile Homes P 18.42.100
Residential Care Homes P
[. . .] [. . .] [. . .]
P = Permitted Use CUP = Conditional Use Permit Required
SECTION 9. Section 18.12.040 (Site Development Standards) of Chapter 18.12 (R‐1 Single
Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to
read as follows (new text underlined and deletions struck‐through; omissions are noted with [. .
.] for large sections of unchanged text):
18.12.040 Site Development Standards
9.e
Packet Pg. 259
NOT YET ADOPTED
6
0160058_20211124_ay16
(a) Site Specifications, Building Size, Height and Bulk, and Residential Density
The development standards for the R‐1 district and the R‐1 subdistricts are shown in Table 2,
except to the extend such standards may be modified by Section 18.42.180 for two‐family uses
pursuant to California Government Code Section 65852.21 (SB 9, 2021):
[. . .]
SECTION 10. Section 18.12.060 (Parking) of Chapter 18.12 (R‐1 Single Family Residential
District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new
text underlined and deletions struck‐through; omissions are noted with [. . .] for large sections
of unchanged text):
18.12.060 Parking
Off‐street parking and loading facilities shall be required for all permitted and conditional uses
in accord with Chapters 18.52 and 18.54 of this title. The following parking requirements apply
in the R‐ 1 districts. These requirements are included for reference purposes only, and in the
event of a conflict between this Section 18.12.060 and any requirement of
Chapters 18.52 and 18.54, Chapters 18.52 and 18.54 shall apply, except in the case of parcels
created pursuant to Section 18.10.140(c) (subdivision incentive for historic preservation).
(a) Parking Requirements for Specific Uses
Table 4 shows the minimum off‐street automobile parking requirements for specific uses
within the R‐1 district.
Table 4
Parking Requirements for Specific R‐1 Uses
Use Minimum Off‐Street Parking Requirement
Single‐family residential use
(excluding accessory dwelling units)
2 spaces per unit, of which one must be covered.
Two family use pursuant to California
Government Code Section 65852.21
(SB 9, 2021)
1 space per unit. No spaces required if located within
one‐half mile walking distance of either a high‐quality
transit corridor or a major transit stop, or located within
one block of a car share vehicle.
Accessory dwelling unit, attached or
detached
No parking required
Junior accessory dwelling unit No parking required
Other Uses See Chs. 18.52 and 18.54
9.e
Packet Pg. 260
NOT YET ADOPTED
7
0160058_20211124_ay16
[. . .]
SECTION 11. Section 18.12.070 (Accessory and Junior Accessory Dwelling Units) of Chapter
18.12 (R‐1 Single Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code
is amended to read as follows (new text underlined and deletions struck‐through):
18.12.070 Accessory and Junior Accessory Dwelling Units
Accessory Dwelling Units and Junior Accessory Dwelling Units are subject to the regulations
set forth in Chapter 18.09 Section 18.42.040.
SECTION 12. Section 18.40.160 (Replacement Project or Discretionary Review Required) of
Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the Palo Alto
Municipal Code is amended to read as follows (new text underlined and deletions struck‐
through):
18.40.160 Replacement Project or Discretionary Review Required
(a) No permit required under Title 2 (Administrative Code), Title 12 (Public Works and
Utilities), or Title 16 (Building Regulations) shall be issued for demolition or deconstruction of a
single family residence or duplex in the Low‐Density Residential District (Chapter 18.10) or
Single Family Residential District (Chapter 18.12), except for deconstruction pursuant to
Section 16.14.130 or where necessary for health and safety purposes (as determined by the
City's Building Official), unless building permit plans for a replacement project have been
approved. This subsection shall also apply to demolition of a single family residence or duplex in
the Multiple Family Residential District (Chapter 18.13) when the replacement project does not
require discretionary review.
(b) No permit required under Title 2 (Administrative Code), Title 12 (Public Works and
Utilities), or Title 16 (Building Regulations) shall be issued for any project requiring discretionary
review under Title 18 or Title 21, unless the application for discretionary review has been
approved.
SECTION 13. Section 18.52.020 (Definitions) of Chapter 18.52 (Parking and Loading
Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as
follows:
18.52.020 Definitions
For purposes of this chapter:
[. . .]
(h) “Within one block of a car share vehicle” means within 600 feet of a parking space
permanently reserved for use by a car share vehicle.
9.e
Packet Pg. 261
NOT YET ADOPTED
8
0160058_20211124_ay16
(h)(i) Definitions for other parking‐related terms can be found in Section 18.04.030(a)
(Definitions), including “Parking as a principal use,” “Parking facility,” and “Parking
space.”
SECTION 14. Table 1 (Minimum Off‐Street Parking Requirements of Section 18.52.040 (Off‐
Street Parking, Loading, and Bicycle Facility Requirements) of Chapter 18.52 (Parking and
Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read
as follows:
18.52.040 Off‐Street Parking, Loading and Bicycle Facility Requirements
[. . .]
Table 1
Minimum Off‐Street Parking Requirements
Use Vehicle Parking
Requirement
(# of spaces)
Bicycle Parking
Requirement
Spaces Class 1 Long
Term (LT) and
Short Term
(ST)
RESIDENTIAL USES
[. . .] [. . .] [. . .] [. . .]
Two‐Family Residential
(R‐2 & RMD Districts)
1.5 spaces per unit, of which at
least one space per unit must
be covered
Tandem Parking Allowed, with
one tandem space per unit,
associated directly with
another parking space for the
same unit
1 space
per unit
100% - LT
(R-1 and RE Districts,
pursuant to Section
18.42.180)
At least one space per unit. No
spaces required if the unit is
located within one‐half mile
walking distance of either a
high‐quality transit corridor or
a major transit stop, as defined
in California Public Resources
Code Sections 21155 and
1 space
per unit
100% - LT
9.e
Packet Pg. 262
NOT YET ADOPTED
9
0160058_20211124_ay16
21064.3 respectively, or
located within one block of a
car share vehicle.
[. . .] [. . .] [. . .] [. . .]
[. . .]
SECTION 15. Section 18.42.180 (Interim Standards for Two Units on Single Family Zoned Lots
Pursuant to Senate Bill 9) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of
the Palo Alto Municipal Code is added to read as follows:
18.42.180 Interim Standards for Two Units on Single Family Zoned Lots Pursuant to
Senate Bill 9.
(a) Purpose. This section sets forth special regulations applicable to the construction of two
dwelling units on single family lots in the R‐1 (and R‐1 subdistricts) and R‐E zone districts,
pursuant to California Government Code Sections 65852.21 and 66411.7 (SB 9, 2021). In the
event of a conflict between the provisions of this section and the generally applicable
regulations of Chapters 18.10, 18.12, and 18.52‐18.80, inclusive, the provisions of this section
shall prevail.
(b) Definitions. As used in this section:
(1) “Specific, adverse impact” means a significant, quantifiable, direct, and
unavoidable impact, based on objective, identified written public health or
safety or physical environmental standards, policies, or conditions as they
existed on the date the application was deemed complete. Inconsistency with
the zoning ordinance or general plan land use designation shall not constitute a
specific, adverse, impact.
(2) “Sufficient to allow separate conveyance” means the two dwelling units
constitute clearly defined, separate, and independent housekeeping units
without interior access points to the other dwelling unit.
(3) “Two dwelling units” means the development proposes two new units on a
vacant lot or proposes to add one new unit to one existing unit on a lot. This
does not include the development of a single dwelling unit on a vacant lot.
(4) “Unit” means any dwelling unit, including, but not limited to a primary dwelling
unit, an accessory dwelling unit, or a junior accessory dwelling unit.
(c) Applicability. When an application is submitted that includes both (1) the construction
of two dwelling units under this section and (2) other redevelopment work that is not integral
to creation of a new dwelling unit and would generally require discretionary review, only the
9.e
Packet Pg. 263
NOT YET ADOPTED
10
0160058_20211124_ay16
portions required for construction of dwelling units shall be reviewed ministerially. In addition,
this section shall not apply in any of the following circumstances:
(1) Parcels described California Government Code Section 65913.4, subdivisions
(a)(6)(B) through (a)(6)(K) inclusive. Such parcels include, for example, parcels
located in wetlands, in very high fire severity zones (unless the site has adopted
certain fire hazard mitigation measures), and in special flood hazard areas or
regulatory floodways (unless the site meets certain federal requirements for
development).
(2) Parcels on which an owner of residential real property has exercised the owner’s
rights under state law to withdraw accommodations from rent or lease within
the past 15 years.
(3) The development would require alteration or demolition of any of the following
types of housing
(A) Housing that is subject to a recorded covenant, ordinance, or law that
restricts rents to levels affordable to persons and families of moderate,
low, or very low income.
(B) Housing that is subject to any form of rent or price control through a
public entity’s valid exercise of its police power.
(C) Housing that has been occupied by a tenant in the last three years.
(4) The development would result in the demolition of more than 25 percent of the
existing exterior structural walls of a site that has been occupied by a tenant in
the last three years.
(5) The development is located within a historic district or property included on the
State Historic Resources Inventory, as defined in California Public Resources
Code Section 5020.1, or within a site that is designated or listed on the City’s
historic inventory.
(6) The building official finds that the development would have a specific, adverse
impact on public health and safety or the physical environment that cannot be
feasibly mitigated or avoided.
(d) Application Process.
(1) The Director is authorized to promulgate regulations, forms, and/or checklists
setting forth application requirements for the development of dwelling units
under this section.
(2) The City shall ministerially approve or disapprove an application pursuant to this
section.
(e) Development Standards.
(1) A project proposing two dwelling units on a parcel in the R‐1 or RE districts shall
be subject to the development standards set forth in Chapters 18.12 and 18.10,
respectively except as provided herein.
(2) All construction pursuant to this section shall comply with objective design
standards adopted by the City Council. However, an applicant seeking to deviate
from the objective design standards (except to the extent necessary to construct
9.e
Packet Pg. 264
NOT YET ADOPTED
11
0160058_20211124_ay16
a unit of 800 square feet) may elect to submit an application under the base
requirements of Chapters 18.10, or 18.12, including, if applicable, Single Family
Individual Review.
(3) If the application of any development standard or design standard would
necessarily require that one or more proposed units be less than 800 square
feet, such standard shall be relaxed to the minimum extent necessary to allow
construction of a unit or units of at least 800 square feet. The Director may
publish regulations governing the order in which objective standards shall be
waived or relaxed in such circumstances.
(4) Setbacks from side and rear property lines, including street‐side property lines,
shall be no less than four feet, except in the case of existing non‐complying
structures or structures reconstructed in the same location and to the same
dimensions as an existing structure, in which case existing setbacks less than four
feet may be maintained.
(5) Off‐street parking shall be provided pursuant to Chapters 18.52 and 18.54.
(6) In the event that a project is proposed on a site that has been subject to an
Urban Lot Split under Chapter 21.10, and the project would result in three or
more detached units across the two parcels created by the urban lot split, any
new units shall not exceed 800 square feet.
(7) Accessory structures, such as garages and shed are permitted consistent with the
provisions of the zoning district; however, no accessory structure shall have a
floor area exceeding 500 square feet.
(f) General Requirements.
(1) A maximum of two units may be located on any parcel that is created by an
Urban Lot Split under Chapter 21.10. Accessory dwelling units and junior
accessory dwelling units shall not be permitted on any such parcel already
containing two units.
(2) On parcels that are not the result of an Urban Lot Split under Chapter 21.10,
accessory dwelling units may be proposed in addition to the primary dwelling
unit or units, consistent with Chapter 18.09, provided, however, that ADUs
associated with projects proceeding under this Section shall not receive any
exemption from Floor Area Ratio except to the minimum extent required by
California Government Code Section 65852.2.
(3) A rental of any unit created pursuant to this Section shall be for a term longer
than 30 consecutive days.
(4) For residential units connected to an onsite wastewater treatment system, a
percolation test completed within the last 5 years, or, if the percolation test has
been recertified, within the last 10 years.
(5) Each unit shall have a permanent street address.
(6) The owner and all successors in interest in the subject property shall agree to
participate in any City survey of properties that have constructed dwelling units
pursuant to this Section.
9.e
Packet Pg. 265
NOT YET ADOPTED
12
0160058_20211124_ay16
(g) Effective Dates. This section shall remain in effect until such time as Government Code
Section 65852.21 is repealed or superseded or its requirements for ministerial approval of no
more than two units on a single family zoned lot are materially amended, whether by
legislation or initiative, at which time this section shall become null and void.
SECTION 16. Chapter 21.10 (Urban Lot Splits) of Title 21 (Subdivisions and Other Divisions of
land) of the Palo Alto Municipal Code is added to read as follows:
Chapter 21.10
PARCEL MAPS FOR URBAN LOT SPLITS IN SINGLE‐FAMILY ZONES
Section 21.10.010 Purpose
Section 21.10.020 Definitions
Section 21.10.030 Applicability
Section 21.10.040 Requirements
Section 21.10.050 Filing of Urban Lot Split Application
Section 21.10.060 Effective dates
Section 21.10.010 Purpose
This chapter sets forth special regulations applicable to the subdivision of a single family lot in
the R‐1 district (and R‐1 subdistricts) or R‐E district into two new lots, pursuant to California
Government Code Section 66411.7 (SB 9, 2021).
Section 21.10.020 Definitions
As used in this chapter:
(a) “Acting in concert” means pursuing a shared goal to split adjacent lots pursuant to an
agreement or understanding, whether formal or informal.
(b) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable
impact, based on objective, identified written public health or safety or physical
environmental standards, policies, or conditions as they existed on the date the
application was deemed complete. Inconsistency with the zoning ordinance or general
plan land use designation shall not constitute a specific, adverse, impact.
(c) “Unit” means any dwelling unit, including, but not limited to, a unit or units created
pursuant to Section 18.42.180, a primary dwelling unit, an accessory dwelling unit, or a
junior accessory dwelling unit.
(d) “Urban Lot Split” means the subdivision of an existing legal parcel in the R‐1 district (and
R‐1 subdistricts) or R‐E district to create no more than two new parcels of approximately
equal area, pursuant to this Chapter and California Government Code Section 66411.7.
Section 21.10.030 Applicability
The provisions of this chapter shall apply only to lots in the R‐1 district (and R‐1 subdistricts) or
R‐E zone district. An Urban Lot Split is not available in any of the following circumstances:
9.e
Packet Pg. 266
NOT YET ADOPTED
13
0160058_20211124_ay16
(a) A parcel described California Government Code Section 65913.4, subdivisions (a)(6)(B)
through (a)(6)(K) inclusive. Such parcels include, for example, parcels located in
wetlands, in very high fire severity zones (unless the site has adopted certain fire hazard
mitigation measures), and in special flood hazard areas or regulatory floodways (unless
the site meets certain federal requirements for development).
(b) A parcel on which an owner of residential real property has exercised the owner’s rights
under state law to withdraw accommodations from rent or lease within the past 15
years.
(c) A parcel that was created by prior exercise of an Urban Lot Split.
(d) A parcel adjacent to a parcel that was created by prior exercise of an Urban Lot Split by
the owner, or a person acting in concert with the owner of the parcel sought to be split.
(e) The Urban Lot Split would require alteration or demolition of any of the following types
of housing
(1) Housing that is subject to a recorded covenant, ordinance, or law that restricts
rents to levels affordable to persons and families of moderate, low, or very low
income.
(2) Housing that is subject to any form of rent or price control through a public
entity’s valid exercise of its police power.
(3) Housing that has been occupied by a tenant in the last three years.
(f) The Urban Lot Split is located within a historic district or property included on the State
Historic Resources Inventory, as defined in California Public Resources Code Section
5020.1, or within a site that is designated or listed on the City’s historic inventory.
(g) The building official finds that the development would have a specific, adverse impact
on public health and safety or the physical environment that cannot be feasibly
mitigated or avoided.
Section 21.10.040 General Requirements
(a) The minimum size for a parcel created by an Urban Lot Split is 1,200 square feet.
(b) The lots created by an Urban Lot Split must be of approximately equal area, such that no
resulting parcel shall be smaller than 40 percent of the lot area of the original parcel
proposed for subdivision.
(c) Each parcel created by an Urban Lot Split shall adjoin the public right of way by means
of a minimum fifteen foot street frontage.
(d) Where existing dwelling units on the property are to remain, no lot line may be created
under this Chapter in a manner that would bisect any structure or that would result in
more than two dwelling units on any resulting parcel.
(e) Each parcel shall comply with any objective lot design standards for Urban Lot Splits
adopted by the City Council.
(f) The Director of Planning shall determine the appropriate fee required for an application
for parcel map for an Urban Lot Split, which may be the fee currently established for a
Preliminary Parcel Map or Parcel Map.
9.e
Packet Pg. 267
NOT YET ADOPTED
14
0160058_20211124_ay16
Section 21.10.050 Application and Review of an Urban Lot Split
(a) The director of planning is authorized to promulgate regulations, forms, and/or
checklists setting forth application requirements for a parcel map for an Urban Lot Split
under this Chapter. An application shall include an affidavit from the property owner,
signed under penalty of perjury under the laws of California, that:
(1) The proposed urban lot split would not require or authorize demolition or
alteration of any of the housing described in Section 21.10.030, subdivision (e).
(2) The proposed urban lot split is not on a parcel described in Section 21.10.030.
(3) The owner intends to occupy one of the housing units located on a lot created by
the parcel map as their principal residence for a minimum of three years from
the date of the recording of the parcel map.
(4) The rental of any unit on the property shall be for a term longer than 30
consecutive days.
(5) The resulting lots will be for residential uses only.
(b) A parcel map for an Urban Lot Split must be prepared by a registered civil engineer or
licensed land surveyor in accordance with Government Code sections 66444 – 66450
and this Chapter. Unless more specific regulations are adopted by the director of
planning, the parcel map shall be in the form and include all of the information required
of a Preliminary Parcel Map by Chapter 21.12, as well as any additional information
required of a Parcel Map by Chapter 21.16. In addition, the face of the Parcel Map shall
contain a declaration that:
(1) Each lot created by the parcel map shall be used solely for residential dwellings.
(2) That no more than two dwelling units may be permitted on each lot.
(3) That rental of any dwelling unit on a lot created by the parcel map shall be for a
term longer than 30 consecutive days.
(4) A lot created by a parcel map under this Chapter shall not be further subdivided.
(c) Upon receipt of a parcel map for an Urban Lot Split, the director of planning shall
transmit copies to the city engineer, chief building official, director of utilities, chief of
police, fire chief, director of transportation, and such other departments of the city, and
any other agencies, as may be required by law or deemed appropriate.
(d) The director of planning shall cause a notice of the pending application to be posted at
the site of the proposed Urban Lot Split and for notice to be mailed to owners and
residents of property within 600 feet of the property.
(e) The director of planning shall ministerially review and approve a parcel map for Urban
Lot Split if they determine that the parcel map application meets all requirements of this
Chapter. The director of planning shall deny a parcel map application that does not
meet any requirement of this Chapter.
Section 21.10.060 Effective Dates.
This chapter shall remain in effect until such time as Government Code Section 66411.7 is
repealed or superseded or its requirements for ministerial approval of an Urban Lot Split on a
single family zoned lot are materially amended, whether by legislation or initiative, at which
time this chapter shall become null and void.
9.e
Packet Pg. 268
NOT YET ADOPTED
15
0160058_20211124_ay16
SECTION 17. Section 18.13.040 (Development Standards) of Chapter 18.13 (Multiple Family
Residential (RM‐20, RM‐30 and RM‐40) Districts) of Title 18 (Zoning) of the Palo Alto Municipal
Code is amended to read as follows:
18.13.040 Development Standards
(a) Site Specifications, Building Size and Bulk, and Residential Density
[. . .]
Table 2
Multiple Family Residential Development Table
RM‐20 RM‐30 RM‐40 Subject to
regulations in:
[. . .] [. . .] [. . .] [. . .] [. . .]
Maximum Floor
Area Ratio
(FAR)(4)
0.5:1 0.6:1 1.0:1 18.13.045
[. . .]
[. . .]
[. . .]
[. . .]
[. . .]
SECTION 18. Section 18.13.045 (Increased Floor Area for Housing Developments of 3‐10 Units)
of Chapter 18.13 (Multiple Family Residential (RM‐20, RM‐30 and RM‐40) Districts) of Title 18
(Zoning) of the Palo Alto Municipal Code is added to read as follows:
18.13.045 Increased Floor Area for Housing Developments of 3‐10 Units
(a) A housing development project, as defined in California Government Code Section
65589.5, that is in an RM‐20, RM‐30 or RM‐40 District shall be allowed to increase its
floor area ratio as follows:
(i) A housing development project of three to seven units shall have a maximum floor
area ratio of 1.0:1.
(ii) A housing development project of eight to ten units shall have a maximum floor
area ratio of 1.25:1.
(b) This section shall not apply within a historic district or property included on the State
Historic Resources Inventory, as defined in California Public Resources Code Section
5020.1, or within a site that is designated or listed on the City’s historic inventory.
SECTION 19. Section 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood,
Community, and Service Commercial (CN, CC and CS)) of Title 18 (Zoning) of the Palo Alto
Municipal Code is amended to read as follows:
9.e
Packet Pg. 269
NOT YET ADOPTED
16
0160058_20211124_ay16
(a) Exclusively Non‐Residential Uses
[. . .]
(b) Mixed Use and Residential
Table 4 specifies the development standards for new residential mixed use developments and
residential developments. These developments shall be designed and constructed in
compliance with the following requirements and the context‐based design criteria outlined in
Section 18.16.090, provided that more restrictive regulations may be recommended by the
architectural review board and approved by the director of planning and development services,
pursuant to Section 18.76.020.
Table 4
Mixed Use and Residential Development Standards
CN CC CC(2) CS Subject to
regulations in
Section
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
Maximum
Residential
Floor Area
Ratio (FAR)
0.5:1 (4) See sub‐
section (e)
below
0.6:1 0.6:1 18.16.065
Maximum
Nonresidential
Floor Area
Ratio (FAR)
0.4:1 2.0:1 0.4:1
Total Mixed
Use Floor Area
Ratio (FAR)
0.9:1 (4) 2.0:1 1.0:1 18.16.065
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
[. . .]
SECTION 20. Section 18.16.065 (Increased Floor Area for Housing Developments of 3‐10 Units)
of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS)) of Title
18 (Zoning) of the Palo Alto Municipal Code is added to read as follows:
18.16.065 Increased Floor Area for Housing Developments of 3‐10 Units
(a) A housing development project as defined in paragraph (2) of subdivision (h) of Section
65589.5 of the Government Code of the State of California that is in a CN, CC or CS
District shall be allowed to increase its floor area ratio as follows:
9.e
Packet Pg. 270
NOT YET ADOPTED
17
0160058_20211124_ay16
(i) A housing development project of three to seven units shall have a maximum
floor area ratio of 1.0:1.
(ii) A housing development project of eight to ten units shall have a maximum floor
area ratio of 1.25:1.
(b) This bonus shall not apply within a historic district or property included on the State
Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code
of the State of California, or within a site that is designated or listed as a city or county
landmark or historic property or district pursuant to a city or county ordinance.
(c) For mixed use development, total mixed use floor area ratio shall be increased to the
extent necessary to accommodate a non‐residential floor area ratio of 0.4:1 for retail
and retail‐like uses only.
SECTION 21. Section 18.18.060 (Development Standards) of Chapter 18.18 (Downtown
Commercial (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to
read as follows:
(a) Exclusively Non‐Residential Use
[. . .]
(b) Mixed Use and Residential
Table 3 specifies the development standards for new residential mixed use developments and
residential developments. These developments shall be designed and constructed in
compliance with the following requirements and the context‐based design criteria outlines in
Section 18.18.110, provided that more restrictive regulations may be recommended by the
architectural review board and approved by the director of planning and development services,
pursuant to Section 18.76.020:
TABLE 3
MIXED USE AND RESIDENTIAL DEVELOPMENT STANDARDS
CD‐C CD‐S CD‐N Subject to
regulations in
Section:
[. . .] [. . .] [. . .] [. . .] [. . .]
Maximum Residential
Floor Area Ratio (FAR)
1.0:1(3) 0.6:1(3) 0.5:1(3) 18.18.065,
18.18.070
Maximum Nonresidential
Floor Area Ratio (FAR)
1.0:1(3) 0.4:1 0.4:1
Total Floor Area Ratio
(FAR)(3)
2.0:1(3) 1.0:1(3) 0.9:1(3) 18.18.065,
18.18.070
[. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
9.e
Packet Pg. 271
NOT YET ADOPTED
18
0160058_20211124_ay16
(1) Required usable open space: (1) may be any combination of private and common open
spaces; (2) does not need to be located on the ground (but rooftop gardens are not
included as open space except as provided below); (3) minimum private open space
dimension 6; and (4) minimum common open space dimension 12
For CN and CS sites on El Camino Real, CS sites on San Antonio Road between Middlefield
Road and East Charleston Road and CC(2) sites that do not abut a single‐ or two‐family
residential use or zoning district, rooftop gardens may qualify as usable open space and
may count as up to 60% of the required usable open space for the residential component
of a project. In order to qualify as usable open space, the rooftop garden shall meet the
requirements set forth in Section 18.40.230.
[. . .]
(3) FAR may be increased with transfers of development, increased floor area for housing
development projects with 3‐10 residential units and/or bonuses for seismic and historic
rehabilitation upgrades, not to exceed a total site FAR of 3.0:1 in the CD‐C subdistrict or
2.0:1 in the CD‐S or CD‐N subdistrict.
[. . .]
(5) The weighted average residential unit size shall be calculated by dividing the sum of the
square footage of all units by the number of units. For example, a project with ten 800‐
square foot 1‐bedroom units, eight 1,200‐square foot 2‐bedroom units, and two 1,800‐
square foot 3‐bedroom units would have a weighted average residential unit size of
((10x800)+(8x1,200)+(2x1,800)) ÷ (10+8+2) = 1,060 square feet.
[. . .]
SECTION 22. Section 18.18.065 (Increased Floor Area for Housing Developments of 3‐10 Units)
of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the Palo Alto
Municipal Code is added to read as follows:
18.16.065 Increased Floor Area for Housing Developments of 3‐10 Units
(a) A housing development project as defined in paragraph (2) of subdivision (h) of Section
65589.5 of the Government Code of the State of California that is in a CD Districts shall
be allowed to increase its floor area ratio as follows:
(i) A housing development project of three to seven units shall have a maximum
residential floor area ratio of 1.0:1.
(ii) A housing development project of eight to ten units shall have a maximum
residential floor area ratio of 1.25:1.
9.e
Packet Pg. 272
NOT YET ADOPTED
19
0160058_20211124_ay16
(b) This bonus shall not apply within a historic district or property included on the State
Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code
of the State of California, or within a site that is designated or listed as a city or county
landmark or historic property or district pursuant to a city or county ordinance.
(c) For mixed use development in the CD‐N and CD‐S subdistricts, total floor area ratio shall
be increased to the extent necessary to accommodate a non‐residential floor area ratio
of 0.4:1 for retail and retail‐like uses only.
(d) In no event shall total floor area ratio exceed 3.0:1 in the CD‐C subdistrict, or 2.0:1 in the
CD‐N and CD‐S subdistricts.
SECTION 23. If any section, subsection, clause or phrase of this Ordinance is for any reason held
to be invalid, such decision shall not affect the validity of the remaining portion or sections of the
Ordinance. The Council hereby declares that it should have adopted the Ordinance and each
section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid.
SECTION 24. The City Council finds that this Ordinance is statutorily exempt from the
requirements of the California Environmental Quality Act (CEQA) for the following reasons.
Under Government Code Sections 66411.7(n) and 65852.21(j), an ordinance adopted to
implement the requirements of SB 9 shall not be considered a project under CEQA. Additional
sections of this ordinance implementing SB 478 are exempt pursuant to Section 15061 of the
State CEQA Guidelines because they simply reflect pre‐emptive state law that will be effective
January 1, 2022. As such, this ordinance does not reflect a change from the status quo and it
therefore can be seen with certainty that there is no possibility that the ordinance will have a
significant effect on the environment.
//
//
//
//
//
//
//
//
9.e
Packet Pg. 273
NOT YET ADOPTED
20
0160058_20211124_ay16
SECTION 25. 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:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning
and Development Services
9.e
Packet Pg. 274
City of Palo Alto (ID # 13823)
City Council Staff Report
Meeting Date: 12/6/2021
City of Palo Alto Page 1
Title: Discuss and Provide Direction to Staff to Initiate a Request for
Information (RFI) on Potential Development of New Parking and/or Housing
in the University Avenue Downtown on City -Owned Surface Parking Lots
Using Current and Expected Parking In -Lieu Funding (8:30 - 10:30 PM)
From: City Manager
This report will be a special late packet release on Thursday, December 2, 2021.
10
Packet Pg. 275
City of Palo Alto (ID # 13641)
City Council Staff Report
Meeting Date: 12/6/2021
City of Palo Alto Page 1
Council Priority: Climate/Sustainability and Climate Action Plan
Title: Informational Report on the Annual Review of the City’s Renewable
Procurement Plan, Renewable Portfolio Standard Compliance, and Carbon
Neutral Electric Supplies for 2020
From: City Ma nager
Lead Department: Utilities
Executive Summary
Like all electric utilities in California, Palo Alto is subject to the state’s Renewable Portfolio
Standard (RPS) mandate of 60% by 2030. The City has also adopted a Carbon Neutral Plan,
which led to the achievement of a carbon neutral electric supply portfolio starting in 2013 (and
which was updated by Council in August 2020). In 2011, in compliance with state RPS
regulations, the Council also formally adopted an RPS Procurement Plan and an RPS
Enforcement Program that recognize certain elements of the state’s RPS law applicable to
publicly-owned utilities. The RPS Enforcement Program requires the City Manager, or their
designee, the Utilities Director, to conduct an annual review of the Electric Utility’s compliance
with the procurement targets set forth in the City’s RPS Procurement Plan.
This staff report satisfies the reporting requirements of the City’s RPS Enforcement Program,
while also providing an update on the City’s compliance with the Carbon Ne utral Plan. The City
continues to meet both its RPS and Carbon Neutral Plan objectives—even after selling over
348,000 MWh of renewable energy in 2020.
Background
The City currently has two independent procurement targets related to renewable and carbon
neutral electricity:
• RPS Procurement Plan (60% by 2030): The City’s official renewable electricity goal is
contained in the RPS Procurement Plan that the City was required to adopt under
Section 399.30(a) of California’s Public Utilities Code. This was adopted in December
2011 (Staff Report 2225, Resolutions 9214 and 9215) and updated in November 2013
(Staff Report 4168, Resolution 9381), December 2018 (Staff Report 9761, Resolution
9802), and December 2020 (Staff Report 11650, Resolution 9929). The last update to the
11
Packet Pg. 276
City of Palo Alto Page 2
RPS Procurement Plan brought it into alignment with the state’s 60% RPS requirement
(SB 100), which was signed into law in 2018. The RPS Procurement Plan and RPS
Enforcement Program complement each other: the Procurement Plan establishes
official procurement targets, while the Enforcement Program specifies the reporting and
monitoring that is required of the Utilities Director whi le working to achieve those
targets.
The procurement requirement in the current version of the City’s RPS Procurement Plan
is that the City acquire renewable electricity supplies equal to 60% of retail sales by
2030, which is in line with the state’s current RPS mandate. The RPS Procurement Plan
also contains an escalating set of targets for six interim Compliance Periods (2011-2013,
2014-2016, 2017-2020, 2021-2024, 2025-2027, and 2028-2030), as well as subsequent
3-year compliance periods beginning in 2031.
• Carbon Neutral Plan (100% Carbon Neutral Electricity by 2013): The Carbon Neutral Plan
was adopted in March 2013 (Staff Report 3550, Resolution 9322) and updated in August
2020 (Staff Report 11556, Resolution 9913), and requires that the City procure a carbon
neutral electric supply portfolio starting in calendar year (CY) 2013. In general, this goal
is expected to be achieved primarily through purchases made under the City’s long-term
renewable power purchase agreements (PPAs) and output from its hydroelectric
resources. However, when the City Council approved an update to the Carbon Neutral
Plan in August 2020, they also approved a new procurement strategy whereby th e City
does not keep all of the output of its long-term, in-state PPAs, but instead exchanges
that output for less expensive out-of-state renewable generation (with the net proceeds
used to offset electric utility operational costs and fund local decarbonization
programs).
Discussion
The City continues to meet its objectives under the RPS Procurement Plan and the Carbon
Neutral Plan, and achieved an RPS level of 20.8% in 2020. Although this value fell short of the
state’s 33% RPS procurement “soft target” for the year, the City remained compliant with state
law because the RPS procurement mandate is evaluated over a multi -year horizon (2017-2020
in this case), and the City far exceeded the state’s soft target levels in the earlier years of the
four-year compliance period. Below is a summary of CPAU’s progress toward satisfying its
renewable energy and carbon neutral procurement targets, with additional detail provided in
Attachment A.
RPS Procurement Plan Compliance
In CY 2020, the City initially received 525,242 MWh of renewable energy through its long-term
contracts for wind, solar, landfill gas, and small hydro resources (which represents 64.5% of the
City’s total retail sales for that period). Additionally, the City received 410,885 MWh of large
hydroelectric generation (representing 50.4% of the City’s total retail sales), which is not
classified as eligible renewable generation by the state. Based on the Council’s decision in
11
Packet Pg. 277
City of Palo Alto Page 3
August 2020 to pursue the “REC Exchange Program” (Staff Report 11556, Resolution 9913) the
City sold 348,700 MWh of in-state renewable energy supplies, yielding $4.04 million in sales
revenue, while purchasing 325,186 MWh of out-of-state renewable energy, at a cost of $1.10
million. Figure 1 below depicts the City’s load and supply resources for CY 2020, before and
after the REC Exchanges described above. Accounting for these transactions, the City’s net
renewable energy supplies totaled 501,728 MWh, which represents 61.6% of the City’s total
retail sales for 2020. However, under the state’s RPS regulations the majority of the out -of-
state renewable energy purchases were not able to be applied to the City’s RPS requirement,
hence the City’s official RPS level was only 20.8%.
Figure 1: CY 2020 Electric Load and Supply Resources, With and Without REC Exchanges
For CY 2021, staff has contracted to sell about 287,000 MWh of in-state renewable generation,
and purchased about 339,000 MWh of out-of-state renewable generation (Figure 2 below
depicts the City’s load and supply resources for CY 2021, before and after the REC Exchanges
described above. Note that much of the decrease in REC sales volume and revenue, compared
to CY 2020, is due to the much lower volume of hydro generation the City expects to receive in
2021 due to the current drought.) Once these transactions are accounted for, they will yield a
total of about $2.25 million in net revenue, and an official RPS level of 35.75% (equal to the
state’s RPS soft target for 2021). However, if the additional out-of-state renewable supplies that
cannot be applied to the City’s RPS requirements are included, the City’s total renewable
electricity supplies are projected to be approximately 75% of retail sales.
11
Packet Pg. 278
City of Palo Alto Page 4
Figure 2: CY 2021 Electric Load and Supply Resources, With and Without REC Exchanges
In accordance with the state’s RPS Program requirements, CPAU’s Procurement Plan develops a
renewable electric supply portfolio that balances environmental goals with system reliability
while maintaining stable and low retail electric rates. The state RPS program requires retail
electricity suppliers like CPAU to procure progressively larger renewable electricity supplies
across a series of separate multi-year Compliance Periods. CPAU’s procurement targets, as well
as its actual/projected procurement volumes and RPS levels, for the first three Compliance
Periods are summarized in Table 1 below.
Table 1: RPS Compliance Period Procurement Targets and Actual Procurement
RPS
Compliance
Period
Years Retail Sales
(MWh)
Procurement
Target (MWh)
Actual
Procurement
(MWh)
% of Retail
Sales
1 2011-2013 2,837,773 567,555 607,740 21.4%
2 2014-2016 2,801,056 605,949 826,855 29.5%
3 2017-2020 3,487,686 1,043,424 1,619,303 46.4%
TOTALS 9,126,515 2,216,928 3,053,898 33.5%
Carbon Neutral Plan
In CY 2020, CPAU achieved its goal, set forth in the Carbon Neutral Plan, of an electric su pply
portfolio with zero net greenhouse (GHG) emissions for the sixth consecutive year. Carbon
neutrality was achieved in CY 2020 through existing hydro and renewable generation (wind,
11
Packet Pg. 279
City of Palo Alto Page 5
solar, and landfill gas). As discussed above, due to the Council’s adoption of the REC Exchange
Program in August 2020, the City sold 348,700 MWh of in -state renewable energy supplies,
yielding $4.04 million in sales revenue, while purchasing 325,186 MWh of out-of-state
renewable energy, at a cost of $1.10 million. Accounting for these transactions, the City’s net
renewable energy supplies totaled 501,728 MWh, which represents 61.6% of the City’s total
retail sales for 2020. The remainder of the City’s needs were supplied by large hydroelectric
resources.
When the City Council approved an update to the Carbon Neutral Plan in August 2020, the
primary change was to adopt an hourly carbon accounting methodology as the basis for
determining whether the City has met its carbon neutrality objective. Using an annual
accounting approach, the City had an overall surplus of 68,407 MWh of carbon neutral
generation compared to its load (equal to 8.1% total load), and thus substantially exceeded the
carbon neutrality standard. Meanwhile, under the hourly carbon accounting approach,1 the
City’s electric supply portfolio also exceeded the carbon neutrality standard, being responsible
for a net negative amount of GHG emissions: -25,104 metric tonnes of CO2 equivalent. See
Figure 3 below for a depiction of the City’s monthly total net CO2 emiss ions for 2020, as well as
the monthly average emissions intensity for the California electric grid.
Figure 3: CY 2020 Monthly Net Electric Supply Emissions and CAISO Emissions Intensity
1 The City’s hourly carbon accounting methodology entails calculating the City’s net surplus or deficit carbon
neutral supply position relative to its load in every hour of the year. The grid average electricity emissions intensity
for each hour is then applied to each of these hourly surpluses or deficits to yield a net emissions contribution (or
reduction) that the City’s electric supply portfolio is responsible for in that hour. These hourly emissions totals are
then summed across the entire year to yield the City’s annual emissions total for th e year.
11
Packet Pg. 280
City of Palo Alto Page 6
For CY 2021, significantly below average hydro conditions are expected to result in about 30%
of the City’s electric supply needs being supplied by hydroelectric resources compared to an
annual average of about 55%, with the remainder coming from non-hydro renewable energy
resources (including purchases of out-of-state unbundled renewable energy certificates, or
RECs).
Policy Implications
This report implements Sections 4 and 5 of the City’s RPS Enforcement Program, which require
an annual review of the Electric Utility’s compliance with the CPAU RPS Procurement Plan t o
ensure that CPAU is making reasonable progress toward meeting the compliance obligations
established in the CPAU RPS Procurement Plan.
Environmental Review
The Council’s review of this report does not meet the definition of a “project” pursuant to
Public Resources Code Section 21065, thus California Environmental Quality Act review is not
required.
Attachments:
• Attachment11.a: Attachment A: 2020 Renewable and Carbon Neutral Electricity
Supply Procurement Details
11
Packet Pg. 281
Renewable and Carbon Neutral Electricity Supply Procurement Details
Renewable Energy Procurement Efforts
Table 1 shows the renewable resources currently under contract, the status of the projects,
their annual output in Gigawatt-hours (GWh), and the rate impact of each resource that was
calculated at the time it was added to the electric supply portfolio.
Table 1: Summary of Contracted Renewable Electricity Resources
Resource Delivery
Begins
Delivery
Ends
Annual
Generation (GWh)
Rate Impact
(¢/kWh)
Small Hydro Before 2000 N/A 10.0 0
High Winds Dec. 2004 Jun. 2028 42.7 0.012
Shiloh I Wind Jun. 2006 Dec. 2021 57.3 (0.041)
Santa Cruz Landfill Gas (LFG) Feb. 2006 Feb. 2026 9.0 0.003
Ox Mountain LFG Apr. 2009 Mar. 2029 42.5 (0.040)
Keller Canyon LFG Aug. 2009 Jul. 2029 13.8 (0.020)
Johnson Canyon LFG May 2013 May 2033 10.4 0.064
San Joaquin LFG Apr. 2014 Apr. 2034 27.5 0.127
Kettleman Solar Aug. 2015 Aug. 2040 53.5 0.099
Hayworth Solar Dec. 2015 Dec. 2042 63.7 0.026
Frontier Solar Jul. 2016 Jul. 2046 52.5 0.011
Elevation Solar C Dec. 2016 Dec. 2041 100.8 (0.044)
W. Antelope Blue Sky Ranch B Dec. 2016 Dec. 2041 50.4 (0.002)
CLEAN Program Projects Varies Varies 5.0 0.027
Total Operating Resources 539.0 0.223
Golden Fields Solar III Jan. 2023 Dec. 2047 75.0 (0.056)
Total Non-Operating Resources 75.0 (0.056)
Total Committed Resources 614.0 0.168
RPS Procurement Plan Compliance
Annually, the Utilities Director reviews CPAU’s RPS Procurement Plan to determine compliance
with the state’s RPS Program. Under the state RPS Program, the California Energy Commission
(CEC) developed portfolio balancing requirements, which dictate what percentage of renewable
procurement must come from resources interconnected to a California Balancing Area (as
opposed to an out-of-state transmission grid balancing area). These requirements also determine
the eligibility criteria for renewable resource products as determined by their eli gible Portfolio
Content Categories1, found in the CEC Enforcement Procedure RPS (CA Code of Regulations, Title
20, Section 3203). The CEC Enforcement Procedures apply to publicly owned utilities (POUs), such
as CPAU.
1 RPS Portfolio Content Categories are defined as follows: Category 1 is energy and RECs delivered to a California
Balancing Authority (CBA) without substituting electricity from another source, Category 2 is energy and RECs that
cannot be delivered to a CBA without substituting electricity from another source, and Category 3 is unbundled RECs.
ATTACHMENT A
11.a
Packet Pg. 282
In accordance with the state’s RPS Program requirements, CPAU’s Procurement Plan develops a
renewable electric supply portfolio that balances environmental goals with system reliability
while maintaining stable and low retail electric rates. The state RPS program requires retail
electricity suppliers like CPAU to procure progressively larger renewable electricity supplies
across three separate Compliance Periods, as outlined below.
1. Compliance Period 1 (2011 – 2013)
For Compliance Period 1 (2011-2013) retail electricity providers were required to procure
renewable electricity supplies equaling 20% of total retail sales, which CPAU did. In this period,
CPAU supplied 21.4% of the City’s retail electricity sales volumes from renewable energy sources.
The procurement results for Compliance Period 1 are displayed in Table 2 below:
Table 2: Compliance Period 1 RPS Procurement Details
Year Retail Sales
(MWh)
Procurement
Target (MWh)*
Actual Procurement
(MWh)
% of Retail
Sales
2011 949,517 189,903 207,974 21.9%
2012 935,021 187,004 200,621 21.5%
2013 953,235 190,647 199,145 20.9%
TOTAL 2,837,773 567,555 607,740 21.4%
* Annual procurement targets are “soft” targets. The RPS Procurement Plan requires that the
target be met for the compliance period as a whole, not in each year of the compliance period.
All of the renewable energy procured in Compliance Period 1 came from resources whose
contracts were executed before June 1, 2010. The RPS Procurement Plan considers these
contracts “grandfathered,” and since all of the renewable energy procurement for Compliance
Period 1 was from these types of contracts, there was no need to meet the Portfolio Balancing
Requirements included in Section B.4 of the RPS Procurement Plan.
2. Compliance Period 2 (2014 – 2016)
In Compliance Period 2, renewable procurement must equal or exceed the sum of the three
annual RPS procurement targets described by the following equations:
2014 RPS Target = 20% × (Retail Sales in 2014)
2015 RPS Target = 20% × (Retail Sales in 2015)
2016 RPS Target = 25% × (Retail Sales in 2016)
As shown in Table 3 below, CPAU easily exceeded this mandated procurement level as well.
Renewable electricity procurement equaled 29.5% of retail sales for Compliance Period 2 overall.
Table 3: Compliance Period 2 RPS Procurement Details
Year Retail Sales
(MWh)
Procurement
Target (MWh)*
Actual Procurement
(MWh)
% of Retail
Sales
2014 953,386 190,677 210,250 22.1%
2015 932,922 186,584 241,262 25.9%
11.a
Packet Pg. 283
2016 914,748 228,687 375,343 41.0%
TOTAL 2,801,056 605,949 826,855 29.5%
* Annual procurement targets are “soft” targets. The RPS Procurement Plan requires that the
target be met for the compliance period as a whole, not in each year of the compliance period.
Also in Compliance Period 2, the RPS Portfolio Balancing Requirement s applied to the
procurement levels described above. The specific requirements are: (1) CPAU must procure at
least 65% of its renewable supplies from Portfolio Content Category 1, and (2) no more than 15%
from Portfolio Content Category 3 (unbundled RECs). CPAU easily met the Compliance Period 2
overall procurement requirement and the RPS Portfolio Balancing Requirement, as five new solar
projects came online in 2015 and 2016, and all of these projects are considered Portfolio Content
Category 1 resources.
3. Compliance Period 3 (2017 – 2020)
For Compliance Period 3, CPAU is subject to “soft” targets to supply at least 27% of its retail sales
volume from renewable resources in 2017, with that level increasing by 2% each year until
reaching 33% in 2020, as described by the following four equations:
2017 RPS Target = 27% × (Retail Sales in 2017)
2018 RPS Target = 29% × (Retail Sales in 2018)
2019 RPS Target = 31% × (Retail Sales in 2019)
2020 RPS Target = 33% × (Retail Sales in 2020)
The overall Compliance Period 3 target is equal to the sum of these four annual soft targets.
Despite falling short of the soft target for 2020, CPAU easily exceeded the Compliance Period 3
overall procurement requirement, as well as the Portfolio Balancing Requirement that at l east
75% of the renewable electricity supplies come from Portfolio Content Category 1 and no more
than 10% come from Portfolio Content Category 3.
Table 4: Compliance Period 3 RPS Procurement Details
Year Retail Sales
(MWh)
Procurement
Target (MWh)*
Actual/Projected
Procurement (MWh)
% of Retail
Sales
2017 912,623 246,408 554,206 60.7%
2018 888,033 257,530 574,475 64.7%
2019 861,561 267,084 319,035 37.0%
2020 825,469 272,405 171,587 20.8%
Total 3,487,686 1,043,426 1,619,303 46.4%
* Annual procurement targets are “soft” targets. The RPS Procurement Plan requires that the
target be met for the compliance period as a whole, not in each year of the compliance period.
Finally, as required by the CEC RPS Enforcement Procedures and Section D of the City’s
Procurement Plan, staff reported all of the above information to the California Energy
Commission in June 2021.
11.a
Packet Pg. 284
City of Palo Alto (ID # 13633)
City Council Staff Report
Meeting Date: 12/6/2021
City of Palo Alto Page 1
Title: Discuss and Provide Direction to Staff on Development of New Parking
Facilities in the University Avenue Downtown Including Consideration of: (a)
Resuming Work on the Garage Project at 375 Hamilton Avenue; or (b) Issuing
a Request for Information (R FI) from Private Partners Regarding
Development of Parking Using Parking In -Lieu Fees, Potentially in
Conjunction with Housing or Other Uses, on Private or City -Owned
Properties
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that Council discuss and provide direction on next steps regarding
development of new parking facilities in the University Avenue area, including potential
direction to:
a)Direct staff to resume the Downtown Parking Garage Project at 375 Hamilton Avenue (Lot
D)including, but not limited to, identifying a timeline and additional funding sources or
determining if modifications to the proposed design are appropriate; or,
b)Initiate a Request for Information (RFI) to examine feasibility of partnering with a private
entity (for-profit or non-profit) on development of new parking using Downtown In-Lieu
Parking Fees, potentially in conjunction with housing or other uses. At Council’s
discretion, this could, include the use of the City’s surface lots or privately-held parcels.
Executive Summary
Under certain circumstances, the City allows Downtown property owners who are redeveloping
their property to satisfy all or part of parking requirement by paying Parking In-Lieu fees to the
City. The City uses these fees to construct new parking facilities. The City developed a plan to
use accumulated Parking In-Lieu funds to construct a parking structure on Lot D at 375
Hamilton Avenue. In 2019, the City Council approved the garage design and certified the
Environmental Impact Report (EIR) but did not immediately proceed with construction. Council
directed staff to return with a range of options to address Downtown parking needs. Staff is
returning to Council seeking direction on the use of the In-Lieu parking fees which would likely
be some variation of: a) initiating a request for information from potential partners for the
development of new parking in conjunction with other needed uses, such as housing, or b)
10
Packet Pg. 285
City of Palo Alto Page 2
directing staff to resume the existing Downtown Parking Garage at 375 Hamilton Avenue, with
or without modification.
As outlined in this report, there are multiple options for consideration; however, this report
seeks initial direction from Council in revisiting the Downtown Parking Garage Project or
potential alternatives to it.
Background
Developers of nonresidential projects in Downtown Palo Alto may satisfy the City’s parking
requirements by paying an in-lieu monetary contribution, currently $115,404 per parking space,
per the Fiscal Year 2022 Adopted Municipal Fee Schedule. This fee is based on the actual design
and construction costs of the last parking garage, adjusted annually for inflation (See PAMC
16.57.030). These contributions can only be used for construction of public parking spaces
within the University Avenue parking assessment district (PAMC 16.57.060). The City’s
estimated balance of the Parking In-Lieu Fee account is approximately $6.3 million as of June
30, 2021. The City does anticipate receiving an additional $9.2 million associated with the
President Hotel. This amount will be paid at the time of final building inspection. The amount is
subject to increasing as it is adjusted by the City’s rate of investment return until the payment is
made. Currently, there is a ban on the use of the in-lieu program for non-residential projects
above the ground floor.
For several years, the City had been developing plans to construct a new 324 -stall downtown
parking garage, with an approximate 2,000 square foot retail component, at 375 Hamilton
Avenue. The City prepared the design, construction documents, and an Environmental Impact
Report and related documentation for the proposed new parking garage . On February 11, 2019,
Council voted to certify the Environmental Impact Report and to approve the Architectural
Review for the 375 Hamilton Downtown Parking Garage (CMR 9263). However, the Council
stopped short of approving contracts to proceed with final design and construction of the
garage. Some Council members expressed concerns regarding environmental impacts of
automobile use. The Council directed staff to return with “options to address Downtown
parking needs.” The parking workplan (CMR 10464) identifies a number of initiatives in progress
related to Downtown parking, including the recent Council approval of a variety of
modifications to City parking policies in the Downtown and Cal Ave areas (CMR 11795).
Recently, the Council adopted adjustments to the parking permit pricing to bring it more in line
with the costs of transit, to encourage transit use.
Discussion
There are 12 City-owned surface parking lots in Downtown Palo Alto as shown in Table 1 and
Figure 1 below. Each lot is zoned Public Facilities (PF) District which is designed to
accommodate governmental, public utility, educational, and community service or recreational
facilities. A variety of land uses are also conditionally p ermitted.
10
Packet Pg. 286
City of Palo Alto Page 3
Table 1: City of Palo Alto Downtown Surface Parking Lots
Lot Approximate Lot Area (sq. ft.) Number of Stalls
Emerson/Lytton Lot (A) 20,265 68
Ramona/Lytton Lot (C) 17,000 52
Hamilton/Waverly Lot (D) 27,969 84
Gilman/Bryant Lot (E) 11,251 35
Florence/Lytton Lot (F) 17,174 47
Gilman/Waverly Lot (G) 16,873 53
Cowper/Hamilton Lot (H) 30,409 93
Lytton/Waverly Lot (K) 21,180 47
Emerson/Ramona Lot (N) 14,997 48
Emerson/High Lot (O) 22,500 78
High/Hamilton Lot (P) 15,980 51
Lytton/Kipling Lot (T) 19,236 51
Total 234,834 707
10
Packet Pg. 287
City of Palo Alto Page 4
Figure 1: City of Palo Alto University Downtown Parking Map
10
Packet Pg. 288
City of Palo Alto Page 5
The Office of Transportation typically conducts semi-annual or annual studies on the City’s
parking facilities. Data from 2019 that was shared with Council on November 1, 2021 (CMR #
11795), as shown below in Table 2, indicates that some downtown parking facilities are fully
occupied during certain peak hours. Since the COVID -19 pandemic, the use of the City’s parking
infrastructure has been reduced substantially and available parking stalls have been plentiful.
However, the loss of 79 on-street parking spaces due to retail parklets, as of June 2021, and the
expected eventual recovery from the pandemic may result in an undersupply of parking spaces
in the City’s downtown in the future. It is prudent for the City to construct additional parking
while the City’s In-Lieu Parking Fees are available and to plan for future parking demand
expected from the eventual recovery and long term growth of downtown.
Table 2: Downtown Palo Alto Off-Street Parking Supply and Occupancy
Staff is returning to the City Council in light of the previously-directed pause of the Downtown
Parking Garage Project seeking direction on next steps in pursuing parking investments in the
downtown core. Ultimately, this item seeks direction from the City Council on:
a)Resumption of the Downtown Parking Garage Project at 375 Hamilton Avenue (Lot
D). OR
b)Looking at new options or alternatives to the previous project through initiation of a
Request for Information (RFI) to examine feasibility of potential development of new
parking, potentially in conjunction with housing, or any other use in the University
Downtown area. This option includes the use of the City’s In-Lieu Parking Fees and
surface lots and could also include adding a publicly-funded public parking
component to private development Downtown.
Each of these paths will require further follow-up and action by the City Council, which staff will
initiate on receipt of Council direction. Guidance on a desired path forward is needed to narrow
10
Packet Pg. 289
City of Palo Alto Page 6
options and focus staff efforts. Although neither a final decision nor specific action is requested
in this report, below are several scenarios for the City Council’s consideration to mitigate the
potential impact of future parking demands.
Scenario A: Resuming Downtown Parking Garage Project at 375 Hamilton Ave.
This scenario provides additional parking in Downtown by resuming the approved downtown
Parking Garage Project at 375 Hamilton Avenue that was brought before the Council on
February 11, 2019 (CMR 9263), or determining if modifications to the proposed design are
appropriate (which may result in additional steps such as evaluating any implications to the
existing Environmental Impact Report (EIR) and architectural review). Additional details about
the project can be found in the Downtown Parking Garage Project website. Final design would
need to be completed to develop construction documents for bidding of the project. Per the
2019 Adopted Capital Budget, construction of the 375 Hamilton Garage was projected at a cost
of $29.1 million and a duration of 16 months, although that cost was expected to increase
through the design work that was in progress. The project, however, can be scaled down by
eliminating the basement level to reduce construction time and cost, while still delivering an
appropriate number of parking spaces and using the in-lieu fees in the City’s account.
Scenario B: Development of New Parking with a Private Partner, Potentially in Conjunction with
Housing or Other Desired Uses
The second scenario combines the interest to increase downtown parking supply coupled with
an opportunity for new housing units or other desired uses. A project of this nature could be
built on a City-owned parcel(s) currently used for surface parking or in combination with a
privately-owned parcel. For example, the City could partner with a non-profit or market-rate
home builder to construct new housing on one surface lot and build a new parking garage on
another (surface parking) lot. The new garage would replace any parking spaces lost to
redevelopment and result in net new parking to serve the downtown area using the parking in-
lieu fees.
Through the housing element discussions, there has been some interest in exploring the
possibility of using a surface parking lot for an income -restricted housing development. The
housing element working group also received a presentat ion from two current Architectural
Review Board members, with their analysis showing the 12 downtown surface parking lots can
potentially be redeveloped to accommodate significantly more housing, retail and public
parking.1 Staff has not independently verified the architects’ work, which staff understands
anticipates some development concessions and market-rate home building. The housing
element working group has been clear in its interest for 100% affordable housing if this type of
development is pursued.
In the alternative, the City could seek information from the marketplace regarding the viability
of adding a public parking element to otherwise-private development, funded by In-Lieu
1 September 2, 2021 Housing Element Working Group Report with Hirsch/Baltay Presentation:
https://paloaltohousingelement.com/wp-content/uploads/2021/08/September-2_Memo_FINAL.pdf
10
Packet Pg. 290
City of Palo Alto Page 7
Parking Funds. Querying the market on this issue would allow the City to better understand the
potential for creative public-private partnerships and to learn whether this type of project
would offer benefits in efficiency and economies of scale.
Potential Next Steps if Looking at New Options or Alternatives to the 375 Downtown Garage
For the purposes of this report and possible Council direction, if there is Council interest in
Scenario B, staff would begin broadly by looking at new options or alternatives to the previous
project at 375 Hamilton. Depending on the guidance of the Council, staff would likely engage
with qualified development consultants to help assess financial feasibility and the crafting of a
request for information, or other appropriate contract process , to solicit information from the
market about a range of viable options. From the results of this process, staff would be better
able to provide options for the Council consideration for development of a new project
including characteristics, finances, and timing.
For the purposes of this next step, identification of priority attributes by the City Council would
assist staff in crafting an RFI or appropriate process. For example :
•Should core characteristics of the solicitation offer City support consisting of both City
parking lots and parking in-lieu funding for the development of new parking facilities in
the Downtown Core? Is Council interested in exploring construction of public parking
spaces as a component of private development on privately-owned parcels?
•What are Council’s priorities or nonstarters for a potential project? This could include:
o new market rate or affordable housing, understanding that 100% affordable
housing may require significant additional City funding;
o projects that conform with current City code requirements such as height
restrictions or that would include moderate exemptions similar to those allowed
under the City’s Planned Housing Zone program; or
o projects that support economic vibrancy of the downtown core.
Staff recommend that this initial process remain fairly broad to ensure the Council is apprised
of the opportunities that partnerships may present. At the same time, it is helpful for staff and
the market to be aware of project types or elements that Council considers to be nonstarters.
Timeline
Following selection and approval of one of the recommendations identified in this report, staff
will conduct further analysis and return to Council with project specifics.
Resource Impact
The estimated cost in 2019 to construct the 375 Hamilton Garage was $29.1 million , or
approximately $90,000 per parking space, based on the proposed 324 parking spaces to be
constructed. Removing the 56 proposed parking stalls in the basement could help reduce the
cost to approximately $25 million.
The current balance of the City’s Parking In-Lieu Fee account is in excess of $6 million, and the
10
Packet Pg. 291
City of Palo Alto Page 8
City recently received a commitment from the 488 University Avenue hotel project (President
Hotel) to pay an additional amount of approximately $9 million. Other funding sources will be
required, in amounts that depend on the magnitude of the project selected. Funding from the
State may also be available for an affordable housing project.
Policy Implications
A public parking garage in downtown was among nine key projects included in the 2014 Council
Infrastructure Plan. The City’s In-Lieu Parking Fees are required to be used for the development
of additional parking in the Downtown Commercial District, per the Palo Alto Municipal Code.
Stakeholder Engagement
The Office of Transportation has done limited public outreach regarding parking in the past.
Staff will conduct additional stakeholder engagement as the project progresses.
Environmental Review
The previously certified Environmental Impact Report (EIR) for 375 Hamilton Avenue is available
online. Complete CEQA documentation for a new project or a new site will be completed as
part of the schematic design phase after final selection.
.
10
Packet Pg. 292
Schedule of Meetings
Published November 24, 2021
11/24/2021
This is a courtesy notice only. Meeting dates, times, and locations are subject to change. Almost all Palo Alto
Council and some Standing Committee meetings are cablecast live on Channel 26. If there happens to be
concurrent meetings, one meeting will be broadcast on Channel 29.
Until further notice, all meetings except City Council Meetings will be held virtually.
City Council Meetings will be held in-person and virtually.
MONDAY, NOVEMBER 29
Sp. City Council Meeting, 5 p.m.
TUESDAY, NOVEMBER 30
Sp. Finance Committee Meeting, 6 p.m.
WEDNESDAY, DECEMBER 1
Sp. Utilities Advisory Commission Meeting, 5 p.m.
THURSDAY, DECEMBER 2
Architectural Review Board Meeting, 8:30 a.m.
MONDAY, DECEMBER 6
Sp. City Council Meeting, 5 p.m.
TUESDAY, DECEMBER 7
Sp. Finance Committee Meeting, 6 p.m.
WEDNESDAY, DECEMBER 8
Planning & Transportation Commission Meeting, 6 p.m.
THURSDAY, DECEMBER 9
Historic Resources Board Meeting, 8:30 a.m.
Human Relations Commission Meeting, 6 p.m.
Sp. Architectural Review Board Meeting, 1 p.m.
MONDAY, DECEMBER 13
Sp. City Council Meeting, 5 p.m.
TUESDAY, DECEMBER 14
Sp. Policy and Services Committee Meeting, 7 p.m.
Sp. Parks & Recreation Commission Meeting, 7 p.m.
WEDNESDAY, DECEMBER 15
Sp. Planning & Transportation Commission Meeting, 6 p.m.
THURSDAY, DECEMBER 16
Architectural Review Board Meeting, 8:30 a.m.
City/School Liaison Committee Meeting, 8:30 a.m.
Public Art Commission Meeting, 7 p.m.
MONDAY, JANUARY 3
Sp. City Council Reorganization Meeting, 5 p.m.
Persons with disabilities who require auxiliary aids or services in using City facilities or programs, or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may
contact: ADA Coordinator, City of Palo Alto, 650-329-2550 (voice) or 329-1199 (TDD), ada@cityofpaloalto.org. Listening assistive devices are available in the Council Chambers. Sign language interpreters will be
provided upon request with 72 hours advance notice. Please advise the City Clerk's Office (650-329-2571) of meetings or changes by 3:00 p.m. on Wednesdays for inclusion in the following week’s schedule.
a
Packet Pg. 293