HomeMy WebLinkAbout2023-02-06 City Council Agenda PacketCITY COUNCIL and
PUBLIC IMPROVEMENT CORPORATION
Special Meeting
Monday, February 06, 2023
Council Chambers & Hybrid
5:00 PM
AMENDED AGENDA
Amended agenda items appear below in RED
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. Masks are strongly encouraged if
attending in person. The meeting will be broadcast on Cable TV Channel 26, live on
YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media
Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238)
Meeting ID: 362 027 238 Phone:1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an
amount of time determined by the Chair. All requests to speak will be taken until 5 minutes
after the staff’s presentation. Written public comments can be submitted in advance to
city.council@CityofPaloAlto.org and will be provided to the Council and available for inspection
on the City’s website. Please clearly indicate which agenda item you are referencing in your
subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only
by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,
the Clerk will have them shared at public comment for the specified item. To uphold strong
cybersecurity management practices, USB’s or other physical electronic storage devices are not
accepted.
TIME ESTIMATES
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.
CALL TO ORDER
STUDY SESSION (5:00 – 6:00 PM)
1.Study Session on Palo Alto Link, the City’s New On‐Demand Transit Service
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:00 – 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.
2.Approval of Minutes from the January 23, 2023 City Council Meeting
3.Adopt Revised Retiree Benefit Funding Policy (Formerly ‘Pension Funding Policy’) for the
Financial Planning of Employee Pension and Other Post‐Employment Benefits
(OPEB)/Retiree Healthcare Plans
4.Approval of Professional Services Agreement with Townsend Public Affairs, Inc.
(C23183770) in the Amount Not‐to‐Exceed $558,000 for State and Federal Legislative
Advocacy Services and Grant Consulting and Compliance Services for a Period of Three
Years with the Option to Renew for Two Periods of One Year Each; CEQA status—not a
project Supplemental Report
5.Adoption of Memorandum of Agreements with International Association of Firefighters,
Local 1319 and Service Employees International Union, Local 521; CEQA status—not a
project
CITY MANAGER COMMENTS (6:35 – 6:50 PM)
RECESS CITY COUNCIL MEETING AND CONVENE PUBLIC IMPROVEMENT CORPORATION
MEETING
ACTION ITEM
6.Approval of Fiscal Year 2022 Palo Alto Public Improvement Corporation's Annual Financial
Statement (6:50 – 7:00 PM)
RECONVENE CITY COUNCIL MEETING
ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials,
Unfinished Business and Council Matters.
7.Discussion Regarding Gas Powered Leaf Blower Enforcement and Possible Direction to
Prepare an Amendment to the Noise Ordinance (PAMC 9.10) and Resolution to Adjust
Financial Penalties for Violations in Residential Neighborhoods to Facilitate Compliance.
(Environmental review: not a project) (7:00 – 8:30 PM)
8.Review and Accept the FY 2024 ‐ FY 2033 Long Range Financial Forecast (LRFF) and FY
2024 Budget Development Guidelines (8:30 – 10:30 PM)
AA1.Approval of the 2023 City Council Priority Focus Areas, and ObjectivesAreas,
Objectives, and Respective Major Projects for Calendar Year 2023
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
ADJOURNMENT
INFORMATION REPORTS
9.Biannual Report of Contracts Awarded by the City Manager, Procurement Officer or
Other Designated Employees
10.2022 City Council Priorities‐ Major Project Quarterly Update
AMENDED AGENDA ITEMS
Items that have been added/modified from the original publication of the agenda 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.
4.Approval of Professional Services Agreement with Townsend Public Affairs, Inc. (C23183770) in
the Amount Not‐to‐Exceed $558,000 for State and Federal Legislative Advocacy Services and
Grant Consulting and Compliance Services for a Period of Three Years with the Option to Renew
for Two Periods of One Year Each; CEQA status—not a project Supplemental Report
AA1. Approval of the 2023 City Council Priority Focus Areas, and ObjectivesAreas, Objectives, and
Respective Major Projects for Calendar Year 2023
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to hybrid meetings via email, in person,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. In person public comments please complete a speaker request card located on the table at
the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the
item.
3. Spoken public comments using a computer or smart phone 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.
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. Or download the Zoom application onto your phone from the
Apple App Store or Google Play Store and enter the Meeting ID below
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.
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.
When called, please limit your remarks to the time limit allotted.
A timer will be shown on the computer to help keep track of your comments.
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 to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833
AMERICANS WITH DISABILITY ACT (ADA)
Persons with disabilities who require auxiliary aids or services in using City facilities, services
or programs or who would like information on the City’s compliance with the Americans with
Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in
advance.
1 Special Meeting February 06, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org.
CITY COUNCIL andPUBLIC IMPROVEMENT CORPORATIONSpecial MeetingMonday, February 06, 2023Council Chambers & Hybrid5:00 PMAMENDED AGENDAAmended agenda items appear below in REDPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATES
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.
CALL TO ORDER
STUDY SESSION (5:00 – 6:00 PM)
1.Study Session on Palo Alto Link, the City’s New On‐Demand Transit Service
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:00 – 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.
2.Approval of Minutes from the January 23, 2023 City Council Meeting
3.Adopt Revised Retiree Benefit Funding Policy (Formerly ‘Pension Funding Policy’) for the
Financial Planning of Employee Pension and Other Post‐Employment Benefits
(OPEB)/Retiree Healthcare Plans
4.Approval of Professional Services Agreement with Townsend Public Affairs, Inc.
(C23183770) in the Amount Not‐to‐Exceed $558,000 for State and Federal Legislative
Advocacy Services and Grant Consulting and Compliance Services for a Period of Three
Years with the Option to Renew for Two Periods of One Year Each; CEQA status—not a
project Supplemental Report
5.Adoption of Memorandum of Agreements with International Association of Firefighters,
Local 1319 and Service Employees International Union, Local 521; CEQA status—not a
project
CITY MANAGER COMMENTS (6:35 – 6:50 PM)
RECESS CITY COUNCIL MEETING AND CONVENE PUBLIC IMPROVEMENT CORPORATION
MEETING
ACTION ITEM
6.Approval of Fiscal Year 2022 Palo Alto Public Improvement Corporation's Annual Financial
Statement (6:50 – 7:00 PM)
RECONVENE CITY COUNCIL MEETING
ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials,
Unfinished Business and Council Matters.
7.Discussion Regarding Gas Powered Leaf Blower Enforcement and Possible Direction to
Prepare an Amendment to the Noise Ordinance (PAMC 9.10) and Resolution to Adjust
Financial Penalties for Violations in Residential Neighborhoods to Facilitate Compliance.
(Environmental review: not a project) (7:00 – 8:30 PM)
8.Review and Accept the FY 2024 ‐ FY 2033 Long Range Financial Forecast (LRFF) and FY
2024 Budget Development Guidelines (8:30 – 10:30 PM)
AA1.Approval of the 2023 City Council Priority Focus Areas, and ObjectivesAreas,
Objectives, and Respective Major Projects for Calendar Year 2023
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
ADJOURNMENT
INFORMATION REPORTS
9.Biannual Report of Contracts Awarded by the City Manager, Procurement Officer or
Other Designated Employees
10.2022 City Council Priorities‐ Major Project Quarterly Update
AMENDED AGENDA ITEMS
Items that have been added/modified from the original publication of the agenda 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.
4.Approval of Professional Services Agreement with Townsend Public Affairs, Inc. (C23183770) in
the Amount Not‐to‐Exceed $558,000 for State and Federal Legislative Advocacy Services and
Grant Consulting and Compliance Services for a Period of Three Years with the Option to Renew
for Two Periods of One Year Each; CEQA status—not a project Supplemental Report
AA1. Approval of the 2023 City Council Priority Focus Areas, and ObjectivesAreas, Objectives, and
Respective Major Projects for Calendar Year 2023
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to hybrid meetings via email, in person,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. In person public comments please complete a speaker request card located on the table at
the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the
item.
3. Spoken public comments using a computer or smart phone 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.
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. Or download the Zoom application onto your phone from the
Apple App Store or Google Play Store and enter the Meeting ID below
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.
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.
When called, please limit your remarks to the time limit allotted.
A timer will be shown on the computer to help keep track of your comments.
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 to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833
AMERICANS WITH DISABILITY ACT (ADA)
Persons with disabilities who require auxiliary aids or services in using City facilities, services
or programs or who would like information on the City’s compliance with the Americans with
Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in
advance.
2 Special Meeting February 06, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org.
CITY COUNCIL andPUBLIC IMPROVEMENT CORPORATIONSpecial MeetingMonday, February 06, 2023Council Chambers & Hybrid5:00 PMAMENDED AGENDAAmended agenda items appear below in REDPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERSTUDY SESSION (5:00 – 6:00 PM)1.Study Session on Palo Alto Link, the City’s New On‐Demand Transit ServiceAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:00 – 6:30 PM)Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the durationof 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.2.Approval of Minutes from the January 23, 2023 City Council Meeting3.Adopt Revised Retiree Benefit Funding Policy (Formerly ‘Pension Funding Policy’) for theFinancial Planning of Employee Pension and Other Post‐Employment Benefits(OPEB)/Retiree Healthcare Plans4.Approval of Professional Services Agreement with Townsend Public Affairs, Inc.(C23183770) in the Amount Not‐to‐Exceed $558,000 for State and Federal LegislativeAdvocacy Services and Grant Consulting and Compliance Services for a Period of ThreeYears with the Option to Renew for Two Periods of One Year Each; CEQA status—not aproject Supplemental Report5.Adoption of Memorandum of Agreements with International Association of Firefighters,Local 1319 and Service Employees International Union, Local 521; CEQA status—not aprojectCITY MANAGER COMMENTS (6:35 – 6:50 PM)RECESS CITY COUNCIL MEETING AND CONVENE PUBLIC IMPROVEMENT CORPORATIONMEETINGACTION ITEM
6.Approval of Fiscal Year 2022 Palo Alto Public Improvement Corporation's Annual Financial
Statement (6:50 – 7:00 PM)
RECONVENE CITY COUNCIL MEETING
ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials,
Unfinished Business and Council Matters.
7.Discussion Regarding Gas Powered Leaf Blower Enforcement and Possible Direction to
Prepare an Amendment to the Noise Ordinance (PAMC 9.10) and Resolution to Adjust
Financial Penalties for Violations in Residential Neighborhoods to Facilitate Compliance.
(Environmental review: not a project) (7:00 – 8:30 PM)
8.Review and Accept the FY 2024 ‐ FY 2033 Long Range Financial Forecast (LRFF) and FY
2024 Budget Development Guidelines (8:30 – 10:30 PM)
AA1.Approval of the 2023 City Council Priority Focus Areas, and ObjectivesAreas,
Objectives, and Respective Major Projects for Calendar Year 2023
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
ADJOURNMENT
INFORMATION REPORTS
9.Biannual Report of Contracts Awarded by the City Manager, Procurement Officer or
Other Designated Employees
10.2022 City Council Priorities‐ Major Project Quarterly Update
AMENDED AGENDA ITEMS
Items that have been added/modified from the original publication of the agenda 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.
4.Approval of Professional Services Agreement with Townsend Public Affairs, Inc. (C23183770) in
the Amount Not‐to‐Exceed $558,000 for State and Federal Legislative Advocacy Services and
Grant Consulting and Compliance Services for a Period of Three Years with the Option to Renew
for Two Periods of One Year Each; CEQA status—not a project Supplemental Report
AA1. Approval of the 2023 City Council Priority Focus Areas, and ObjectivesAreas, Objectives, and
Respective Major Projects for Calendar Year 2023
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to hybrid meetings via email, in person,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. In person public comments please complete a speaker request card located on the table at
the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the
item.
3. Spoken public comments using a computer or smart phone 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.
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. Or download the Zoom application onto your phone from the
Apple App Store or Google Play Store and enter the Meeting ID below
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.
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.
When called, please limit your remarks to the time limit allotted.
A timer will be shown on the computer to help keep track of your comments.
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 to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833
AMERICANS WITH DISABILITY ACT (ADA)
Persons with disabilities who require auxiliary aids or services in using City facilities, services
or programs or who would like information on the City’s compliance with the Americans with
Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in
advance.
3 Special Meeting February 06, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org.
CITY COUNCIL andPUBLIC IMPROVEMENT CORPORATIONSpecial MeetingMonday, February 06, 2023Council Chambers & Hybrid5:00 PMAMENDED AGENDAAmended agenda items appear below in REDPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERSTUDY SESSION (5:00 – 6:00 PM)1.Study Session on Palo Alto Link, the City’s New On‐Demand Transit ServiceAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:00 – 6:30 PM)Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the durationof 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.2.Approval of Minutes from the January 23, 2023 City Council Meeting3.Adopt Revised Retiree Benefit Funding Policy (Formerly ‘Pension Funding Policy’) for theFinancial Planning of Employee Pension and Other Post‐Employment Benefits(OPEB)/Retiree Healthcare Plans4.Approval of Professional Services Agreement with Townsend Public Affairs, Inc.(C23183770) in the Amount Not‐to‐Exceed $558,000 for State and Federal LegislativeAdvocacy Services and Grant Consulting and Compliance Services for a Period of ThreeYears with the Option to Renew for Two Periods of One Year Each; CEQA status—not aproject Supplemental Report5.Adoption of Memorandum of Agreements with International Association of Firefighters,Local 1319 and Service Employees International Union, Local 521; CEQA status—not aprojectCITY MANAGER COMMENTS (6:35 – 6:50 PM)RECESS CITY COUNCIL MEETING AND CONVENE PUBLIC IMPROVEMENT CORPORATIONMEETINGACTION ITEM6.Approval of Fiscal Year 2022 Palo Alto Public Improvement Corporation's Annual FinancialStatement (6:50 – 7:00 PM)RECONVENE CITY COUNCIL MEETINGACTION ITEMSInclude: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials,Unfinished Business and Council Matters.7.Discussion Regarding Gas Powered Leaf Blower Enforcement and Possible Direction toPrepare an Amendment to the Noise Ordinance (PAMC 9.10) and Resolution to AdjustFinancial Penalties for Violations in Residential Neighborhoods to Facilitate Compliance.(Environmental review: not a project) (7:00 – 8:30 PM)8.Review and Accept the FY 2024 ‐ FY 2033 Long Range Financial Forecast (LRFF) and FY2024 Budget Development Guidelines (8:30 – 10:30 PM)AA1.Approval of the 2023 City Council Priority Focus Areas, and ObjectivesAreas,Objectives, and Respective Major Projects for Calendar Year 2023COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTSADJOURNMENTINFORMATION REPORTS9.Biannual Report of Contracts Awarded by the City Manager, Procurement Officer orOther Designated Employees10.2022 City Council Priorities‐ Major Project Quarterly UpdateAMENDED AGENDA ITEMSItems that have been added/modified from the original publication of the agenda are listed below. Anycorresponding materials are appended to the end of the initial packet. If full items have been added to theAgenda, they will be denoted with a number staring with AA, meaning Amended Agenda item.4.Approval of Professional Services Agreement with Townsend Public Affairs, Inc. (C23183770) inthe Amount Not‐to‐Exceed $558,000 for State and Federal Legislative Advocacy Services andGrant Consulting and Compliance Services for a Period of Three Years with the Option to Renewfor Two Periods of One Year Each; CEQA status—not a project Supplemental Report AA1. Approval of the 2023 City Council Priority Focus Areas, and ObjectivesAreas, Objectives, andRespective Major Projects for Calendar Year 2023
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to hybrid meetings via email, in person,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. In person public comments please complete a speaker request card located on the table at
the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the
item.
3. Spoken public comments using a computer or smart phone 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.
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. Or download the Zoom application onto your phone from the
Apple App Store or Google Play Store and enter the Meeting ID below
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.
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.
When called, please limit your remarks to the time limit allotted.
A timer will be shown on the computer to help keep track of your comments.
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
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AMERICANS WITH DISABILITY ACT (ADA)
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4 Special Meeting February 06, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org.
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CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: STUDY SESSION
Lead Department: Transportation
Meeting Date: February 6, 2023
TITLE
Study Session on Palo Alto Link, the City’s New On-Demand Transit Service.
RECOMMENDATION
Staff recommends that the City Council receive a Study Session regarding the launch of the
City’s On-Demand Transit Service Palo Alto Link (PAL).
EXECUTIVE SUMMARY
This study session item provides a forum for questions and feedback, and an opportunity to
increase awareness of our new on-demand transit service Palo Alto Link (PAL). The City selected
vendor Nomad Transit, LLC, aka” Via”, to operate the service beginning on March 7, 2023, with
a designated $2,500,000 in Measure B and local funding, for a term of 18 months. PAL will serve
riders Monday through Friday, 8:00 AM to 6:00 PM. Unlike standard fixed route shuttle
services, PAL will provide same-day mobile and phone booking and serve most of the City,
deploying both hybrid and electric vehicles (EVs), with the intention to eventually transition
fully to EV. PAL will connect passengers with destinations and transit for the single ride price of
$3.50 and a discounted price of $1 for disabled, low-income, and youth. Weekly and monthly
passes catering to commuters will also be available.
BACKGROUND/DISCUSSION
PAL will provide on-demand service Monday – Friday for a 10-hour service span 8:00am-
6:00pm. The service will operate within most of the City, with exceptions only to the east and
west ends that house large open spaces and conservation lands. PAL will utilize nine (9) vehicles
(7 active and 2 in reserve) with two (2) active wheelchair-accessible vehicles and one (1) in
reserve. Two (2) electric vehicles (EVs) and four (4) hybrid van vehicles will be configured to
carry passengers and will also have bike racks.
In contrast to the two fixed routes served by prior Palo Alto Shuttle services, the on-demand
service will provide flexible routes and flexible-schedule transit service within most of the City.
Pick-up and drop-off locations will be virtually positioned within an acceptable walking distance
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with the help of a web application. Door-to-door service will also be available for riders who
may require extra assistance. The service will help address first-/last-mile challenges in Palo
Alto and provide a convenient and affordable transportation option for residents, employees,
and vulnerable/transit-dependent populations.
The most significant purpose of the project is to assist in post-pandemic recovery, including
restoring mobility to vulnerable/transit-dependent populations. Additionally, the service model
aims to support employees transitioning back into their office spaces through coordinating
connections with the Caltrain peak hour schedule. Finally, the City is seeking to partner with
Stanford Research Park, and others, to provide supportive services to local businesses and
organizations.
Effective July 1, 2020, Palo Alto Free Shuttle services (both the Embarcadero and Crosstown
shuttle) were discontinued due to citywide financial reductions. The two shuttles served
numerous vulnerable and transit-dependent populations including seniors and students, an
estimated 550 riders per day or 140,000 riders per year.
The 2016 Measure B Program office released the Innovative Transit Service Models Competitive
Grant call-for-projects on October 5, 2020, making available $6.0 million for distribution. The
City of Palo Alto applied for a grant on December 3, 2020, to implement an On-Demand Transit
Service. The on-demand transit service grant application submitted was in alignment with the
August 14, 2017 Palo Alto City Council motion to approve the Palo Alto Transit Vision Plan while
directing staff to incorporate flex transit models and seek Measure B funds (link to motion). The
VTA Board of Directors adopted the 2016 Measure B Transit Operations Program Category
Guidelines at their October 5, 2017 meeting.
While funding is secured for 18 months of service, City and Via staff hope to continue the
service and will be seeking out additional grant funds and partnership funding opportunities.
FISCAL/RESOURCE IMPACT
This item is a study session item only and does not have a financial impact. The City Council
approved the contract for this service with CMR #14959.
POLICY IMPLICATIONS
Provision of on-demand transit service supports the City’s Sustainability and Climate Action
Plan goals to reduce greenhouse gas emissions and is supported by the following
Comprehensive Plan policies and programs:
Policy T-1.1: Take a comprehensive approach to reducing single-occupant vehicle
trips by involving those who live, work and shop in Palo Alto in developing
strategies that make it easier and more convenient not to drive...
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Policy T-1.6: Encourage innovation and expanded transit access to regional
destinations, multi-modal transit stations, employment centers and commercial
centers, including those within Palo Alto through the use of efficient public and/or
private transit options such as rideshare services, on-demand local shuttles and
other first/last mile connections.
Program T1.6.1: Collaborate with transit providers, including Caltrain, bus
operators and rideshare companies, to develop first/last mile connection strategies
that boost the use of transit and shuttle service for local errands and commuting...
Policy T-1.13: Encourage services that complement and enhance the
transportation options available to help Palo Alto residents and employees make
first/last mile connections and travel within the city for daily needs without using a
single-occupancy vehicle, including shuttle, taxi and ridesharing services.
Program T1.13.1: Investigate a pilot program to subsidize a taxi, rideshare or
transit program for Palo Altans to get to/from downtown, including offering
education and incentives to encourage users.
STAKEHOLDER ENGAGEMENT
Public engagement began in early 2023 to alert the community to the upcoming availability of
the new service in March. Stakeholders who will be targeted for notification of the service
include Caltrain riders, commuters to Palo Alto, service providers targeting older adults, senior
living communities, youth service providers, neighborhood groups, etc. Community
engagement and marketing activities may include tabling at community events and destinations
(Farmer’s Market, Caltrain stations, grocery stores) and social media campaigns (NextDoor,
Facebook, Uplift Local, local newspapers, City blog posts, etc.).
ENVIRONMENTAL REVIEW
This program is not considered a project under CEQA because it has no potential for resulting in
either a direct or reasonably foreseeable indirect change in the environment. If the program is
found to be a project under CEQA, the program is exempt from environmental review pursuant
to CEQA Guidelines Section 15061(b)(3) in that the activity is covered by the general rule that
CEQA applies only to projects which have the potential for causing a significant effect on the
environment. The program, which proposes no physical changes and would support transit
ridership, thereby reducing greenhouse gas emissions, would have no or only a de minimis
impact on the environment.
APPROVED BY:
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Philip Kamhi, Chief Transportation Official
Report #: 2301-0787
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CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: February 6, 2023
TITLE
Approval of Minutes from the January 23, 2023 City Council Meeting
RECOMMENDATION
It is recommended that the minutes be reviewed and approved.
ATTACHMENTS
Attachment A: Minutes January 23, 2023
APPROVED BY:
Lesley Milton, City Clerk
Report #: 2301-0832
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CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 5
Special Meeting
January 23, 2023
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual
teleconference at 5:00 P.M.
Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker
Present Remotely: None
Absent: None
Special Orders of the Day
AA1. Proclamation for Lunar New Year
Closed Session
1. CONFERENCE WITH CITY ATTORNEY
Subject: Written Liability Claim Against the City of Palo Alto by James Goodrich
(Claim No. C22-0013)
Authority: Government Code Section 54956.9(e)(3)
2. CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: City Manager and his Designees Pursuant to Merit
System Rules and Regulations (Ed Shikada, Kiely Nose, Sandra Blanch, Nicholas Raisch,
Molly Stump, and Caio Arelleano)
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)
MOTION: Council Member Veenker moved, seconded by Council Member Burt to
adjourn to Closed Session.
MOTION PASSED: 7-0
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Minutes January 23, 2023
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DRAFT ACTION MINUTES
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(Sp.) City Council Meeting
Draft Action Minutes: 01/23/2022
Council went into Closed Session at 5:05 P.M.
Council returned from Closed Session at 7:21 P.M.
Mayor Kou indicated there was no reportable action
Study Session
3. Presentation of the Annual Community Survey Results
Action: None taken
Agenda Changes, Additions and Deletions
No changes
Public Comment
Consent Calendar
Council Member Tanaka registered a no vote on Agenda Item Number 4, 5, 10.
Council Members Burt, Stone, Tanaka requested to pull item 7.
MOTION: Council Member Burt moved, seconded by Vice Mayor Stone to approve Agenda
Item Numbers 4-6, 8-12.
MOTION SPLIT FOR PURPOSES OF VOTING:
AGENDA ITEMS 6, 8-12 PASSED: 7-0
AGENDA ITEMS 4, 5, 10 PASSED: 6-1, Tanaka No
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Minutes January 23, 2023
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DRAFT ACTION MINUTES
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(Sp.) City Council Meeting
Draft Action Minutes: 01/23/2022
4. Approval of a General Services Agreement Contract Number C23185605 with Linko
Technology, Inc. for the Amount of $219,447 Over a Seven-Year Term for Pretreatment
Program Software
5. Review and Acceptance of Annual Status Report on Development Impact Fees for Fiscal
Year 2022 and Adoption Resolution 10092 Making Statutory Findings under Govt. Code
section 66001
6. Approval of Contract Number C23186552 With Downtown Streets Team, Inc. for a Total
Not-to-Exceed Amount of $160,477 for Fiscal Year 2023 for Workforce Development
Services
7. Parks and Recreation Commission Recommendation to Adopt an Ordinance Amending
PAMC Section 22.04.220 to Regulate Electric Bicycles and Electric Coasting Devices in
Parks and Open Spaces (item continued)
8. Acceptance of the Macias Gini & O’Connell Audit of the City of Palo Alto’s Financial
Statements as of June 30, 2022 and the Management Letter; Approval of the FY 2022
Annual Comprehensive Financial Report (ACFR); and Amendments to the FY 2022
Budget in Various Funds, as Recommended by the Finance Committee
9. Adopted Resolution 10093 to Extend the Appointment of Adriane D. McCoy of Baker
Tilly US, LLP as Interim City Auditor Through April 30, 2023
10. Approval of Contract with CivicPlus, LLC (C23186719) for CivicRec Recreation
Management Software for a Period of Six Years in an Amount Not to Exceed $735,065
(Including a 5% Contingency for Additional Services Amount of $29,229)
11. Adopted Resolution 10094 Establishing the Council Annual Calendar of Meetings, Breaks
and Council Events for Calendar Year 2023
12. Approval of Recommendations on Process for 2023 Council Priority Setting Retreat
City Manager Comments
City Manager Ed Shikada
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Minutes January 23, 2023
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DRAFT ACTION MINUTES
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(Sp.) City Council Meeting
Draft Action Minutes: 01/23/2022
Action Items
13. PUBLIC HEARING / QUASI-JUDICIAL. 575 Los Trancos [21PLN-00196]: Adoption of a
Record of Land Use Action Approving a Major Site and Design Application for the
Construction of a new 7,245 Square Foot Single-Family Residence With a new 895
Square Foot Accessory Dwelling Unit and Associated Site Improvements, on a 5.38-Acre
Site. Zoning District: Open Space (OS). Environmental Review: Adoption of a Mitigated
Negative Declaration and Mitigation Monitoring and Reporting Program.
Council member Lauing recused himself from the item
Public Hearing opened at X:XX P.M.
Public Hearing closed at 10:45 P.M.
MOTION: Council Member Burt moved, seconded by Mayor Kou to:
1) The Council refer this item back to the PTC for consideration of the following as the current
proposal does not allow us to make the findings of section C. Request that the PTC evaluate
project design modifications to meet the following objectives:
a) Evaluate a project design that provides for approximately 50-foot setback from the top
of bank
b) Effective bird-safe glazing treatment of all glass surfaces achieving the American Bird
Conservancy Threat Factor rating of 15.
c) Eliminate fencing that could impede wildlife movement along the creek.
d) Minimize nighttime lighting along the riparian corridor and allow only minimal lighting in
all other locations. Lighting should not interfere with wildlife movement through the
landscape, and all outdoor lighting should be limited to Correlated Color Temperature of
2700 Kelvin or less, and extinguished at 11PM.
e) Pool should be covered and fenced in a way that ensures that small animals, such as
amphibians and reptiles cannot enter the swimming pool.
2) Request that staff return to Council with a plan and timeline amend the Zoning code
Comprehensive Plan Policy N.3.3. and Program N3.3.1
MOTION PASSED: 4-2, Tanaka, Lythcott-Haims No, Lauing Recused
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Minutes January 23, 2023
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DRAFT ACTION MINUTES
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(Sp.) City Council Meeting
Draft Action Minutes: 01/23/2022
14. City Council discussion and direction regarding wage requirements for the contract for
next Janitorial services
A. Review and Provide Direction on Wage and Benefits Requirements for Inclusion in a
New Janitorial Services Request for Proposal (RFP)
B. Responsible Contracting Standards Colleague's Memo (Stone & Burt)
ACTION: public comments accepted, but item continued to a future meeting
Council Member Questions, Comments and Announcements
Adjournment: The meeting was adjourned at 12:19 AM. in honor of the victims of the tragedy
in Monterey Park, CA on January 21, 2023.
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.
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Minutes January 23, 2023
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CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: CONSENT AGENDA
Lead Department: Administrative Services
Meeting Date: February 6, 2023
TITLE
Adopt Revised Retiree Benefit Funding Policy (Formerly ‘Pension Funding Policy’) for the Financial
Planning of Employee Pension and Other Post-Employment Benefits (OPEB)/Retiree Healthcare
Plans
RECOMMENDATION
The Finance Committee and Staff recommend that the City Council adopt revisions to the Retiree
Benefit Funding Policy (formerly ‘Pension Funding Policy’) used to inform long term financial
planning of these benefits.
EXECUTIVE SUMMARY
This report concludes a series of meetings with the Finance Committee to review the status of
pension and Other Post-Employment Benefit (OPEB) “retiree healthcare” plans and the Pension
Funding Policy that guides the long-term financial planning of these benefits. The revisions to this
policy, recommended for Council adoption as unanimously approved by the Finance Committee
include:
1) Modify title from “Pension Policy” to “Retiree Benefit Policy” to recognize the inclusion
of retiree healthcare plans
2) Formalize changes approved by the City Council since adoption of the policy:
a. Add language for proactive planning of retiree healthcare plans
b. Reduce the discount rate used to calculate Section 115 Trust contributions, from
6.2% to 5.3% for pension and 6.25% to 5.75% for retiree health
3) Modify the investment strategy of Section 115 Trusts
a. Change the Pension Trust portfolio from Moderately Conservative to Balanced
b. Invest in a more conservative portfolio once plans are 75-80% funded or the City’s
actuary recommends disbursements
4) Modify the reporting requirement for periodic actuary review
a. Extend reporting from 3 to 4 years to include plan changes resulting from CalPERS
Asset Liability Management (ALM) and Experience Studies
b. Include a recalculation of the amortization schedule for the Unfunded Accrued
Liability (UAL) at the lower discount rate
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BACKGROUND
The City has taken several proactive steps to address rising pension costs and long-term liabilities,
including cost-sharing in labor agreements, and establishing an irrevocable Section 115 Pension
Trust “Pension Trust” (CMR 75531), and adopting a Pension Funding Policy (CMR 117222). The
Pension Policy is an evergreen policy that automatically renews until goals are complete, subject
to modification at the City Council’s direction. The policy identifies a path forward for the City to
address its pension obligations on an ongoing basis, ensure prudent and proactive financial
planning, and avoid significant impacts to service delivery.
The Pension Policy sets the following goals and principles:
Funding Goal and Timeframe: Target of reaching a 90 percent funded status by FY 2036
(within 15 years)
Funding Components: 1) Fund the Normal Cost (“pay go” costs) of annual pensions at a more
conservative discount rate than CalPERS; 6.2% as compared to 7.0% used by CalPERS at policy
adoption. 2) City Manager discretion to make additional contributions from excess Budget
Stabilization Reserve (BSR) above the City Council approved target BSR level.
Use of Funds: 1) City Manager must identify the impacts on the funding goal and timeframe
to modify the transmission of contributions to the PARS Trust Fund. 2) Any transmission of
funds from PARS to CalPERS will require City Council approval.
Reporting: 1) Every three years, staff will consult with an actuary to inform the City Council
on the progress the City has made towards its goal. 2) Staff will report to the City Council
through the annual budget process on the status of the PARS section 115 pension trust fund,
recommended contributions to the PARS fund, and potential transmission of any funds from
PARS to CalPERS for the coming fiscal year
Consistent with reporting requirements of the policy and City Council direction, periodic actuary
reviews are conducted to assess and respond to changes impacting the City’s pensions and
retiree healthcare plans and the funding available to meet those benefit costs. As part of this
process, the policy is evaluated for potential revisions, including the formalization of changes
approved by the City Council since adoption of the policy, and budgetary practices used to inform
the financial planning of these benefit costs. To facilitate in this review, staff engaged in several
meetings with the Finance Committee, outlined below:
September 20, 2022: Review the California Public Employees’ Retirement System (CalPERS)
Pension Annual Valuation Reports as of June 30, 2021 (CMR 146283):
1 City Council Staff Report January 23, 2017 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2017/7553.pdf
2 City Council Staff Report November 30, 2020 https://www.cityofpaloalto.org/files/assets/public/agendas-
minutes-reports/reports/city-manager-reports-cmrs/year-archive/2020-2/id-11722.pdf
3 Finance Committee Staff Report November 20, 2022 https://www.cityofpaloalto.org/files/assets/public/agendas-
minutes-reports/agendas-minutes/finance-committee/2022/20220920/20220920pfcs.pdf
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•Annual reports issued by CalPERS provide an update on the assets and accrued liabilities
of plans, determine minimum employer contributions for the coming fiscal year (FY 2024),
and communicate significant changes in actuarial assumptions or policies.
•CalPERS plans experienced favorable outcomes due to a 21.3 percent investment return;
this report does not include the impact from a preliminary investment loss of 6.1 percent
or higher expected for the period ending June 30, 2022.
•CalPERS completed an Asset Liability Management (ALM) and Experience Study in
November 2021 resulting in several notable outcomes, such as reducing the discount rate
from 7.0 to 6.8 percent and changing the asset allocation of investments.
•CalPERS reports do not contemplate policy measures such as cost-sharing with employees
and accumulated savings in the Pension Trust.
October 18, 2022: Review Pension and Other Post-Employment Benefits (OPEB) (“retiree
healthcare”) Trust Funds with Plan Providers (CMR 148294):
•The City maintains two Section 115 Trusts to prefund retiree benefit costs: 1) the “Pension
Trust” administered by the Public Agency Retirement System (PARS); and 2) the California
Employers’ Retiree Benefit Trust (CERBT) Fund for OPEB plans administered by CalPERS.
•The City has discretion to select the risk tolerance of investments and control the
inflow/outflow of funds; the Finance Committee reaffirmed policy direction to transmit
Additional Discretionary Payments (ADPs) from the Pension Trust to CalPERS for amounts
that exceed one year employer payment, this is expected to occur in the next 2-3 years.
•Report includes a detailed overview of trust status, including historical performance, risk
profiles of portfolios, and other investment options for consideration.
December 6, 2022: Review Revised Actuary Pension Analysis using Alternative Assumptions to
CalPERS and Review Potential Modifications to the Pension Funding Policy (CMR 147485):
•The City engaged with outside actuary Foster & Foster (formerly Bartel and Associates) to
complete a comprehensive analysis of the City’s pension plans, progress towards meeting
funding goals, and other risk mitigation strategies.
•The analysis considers alternative economic and demographic assumptions to CalPERS,
including a preliminary investment loss for the period ending June 30, 2022, cost-sharing
with employees, and use of accumulated savings in the Pension Trust.
•Actuary results project that the City will meet the 90 percent funded goals by FY 2034
(Miscellaneous plan) and FY 2036-37 (Safety plan); the City’s practice of transmitting
excess one-time savings will help reach goals sooner.
DISCUSSION
The Finance Committee and staff recommend that the City Council adopt revisions to the policy
4 Finance Committee Staff Report October 18, 2022 https://www.cityofpaloalto.org/files/assets/public/agendas-
minutes-reports/agendas-minutes/finance-committee/2022/20221018/20221018pfcs.pdf
5 Finance Committee Staff Report December 6, 2022 https://www.cityofpaloalto.org/files/assets/public/agendas-
minutes-reports/agendas-minutes/finance-committee/2022/20221206/20221206pfcsm-late-packet.pdf
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that formalize changes approved by the City Council since adoption of the policy and modify
budgetary practices that inform long term financial planning of these benefits. A summary of the
current Pension Policy and revisions is included in Attachment A and discussed in more detail in
this report. A red-lined copy of the policy is included in Attachment B.
Add proactive planning for Other Post-Employment Benefits (OPEB)/retiree healthcare to policy,
consistent with City Council actions:
The Pension Policy does not explicitly include language for Other Post-Employment Benefit
(OPEB)/retiree healthcare plans. As directed by the City Council, staff have worked to align the
City’s policy goals for pension and retiree healthcare liabilities since the adoption of the Pension
Policy. Therefore, this report includes a revision to the policy to add language for proactive
funding of retiree healthcare benefits approved by the City Council and change the title from
‘Pension Funding Policy’ to ‘Retiree Benefit Funding Policy’.
Assume a move conservative discount rate for supplemental contributions from 6.2 percent to 5.3
percent (Pension) and from 6.25 percent to 5.75 percent (OPEB), as approved by the City Council:
Beginning in FY 2023, the City Council approved reducing the discount rate to calculate
supplemental pension contributions from the previously approved rate of 6.2 percent to 5.3
percent over two years; FY 2023 is a transitional year equivalent to a rate of approximately 5.8
percent. These actions more closely align the discount rate with the CalPERS Asset Liability
Management (ALM) study completed in November 2021, which includes a survey of external
asset managers and consultants to gain expert projections on expected market returns. In the
most recent ALM study, the median expected returns of survey participants were 5.3 percent
(10-year) and 6.2 percent (20-year). Additionally, the City Council approved the use of a lower
discount rate for supplemental OPEB contributions from 6.25 percent to 5.75 percent, and
alternative assumptions to align with known variables such as investment returns (CMR 14112 as
amended by CMR 145026).
A goal of this funding element is to identify a discount rate for the calculation of the normal cost
of pensions that best aligns with actual investment returns, mitigating the creation of new liability
bases resulting from these discrepancies to the extent possible. Future adjustments are
anticipated to align planned contributions with anticipated economic and demographic
assumptions, including but not limited to expected investment returns, subject to City Council
approval. Staff expects to use proactive measures to inform changes, such as the ALM study and
other external expert projections. Additionally, staff will continue to monitor any major factors
that contribute to the creation of new liabilities in future CalPERS reporting.
Add language for investment strategy of Pension and OPEB Trusts, including more conservative
investment allocations once 75-80% funded, or when actuary recommend disbursements:
As discussed with plan providers at the October 18, 2022 meeting, investments made in these
funds are required to be used to pay retiree pension and healthcare costs respectively. However,
6 Finance Committee Staff Report June 7, 2022 https://www.cityofpaloalto.org/files/assets/public/agendas-
minutes-reports/agendas-minutes/finance-committee/2022/20220607/20220607pfcsm-final.pdf
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the City has the discretion to select the investment risk tolerance and control the inflow and
outflow of funds. Ultimately, the balance maintained, and investment strategy(s) should depend
on the intended use of the funds.
As prefunding strategies move the City closer to meeting funded status goals, staff recommends
revising the investment strategy for these funds. When actuary valuations recommend
disbursements or when the balance-maintained approaches 75-80 percent funded status, the
investment strategy should be diversified with an intention of ensuring both stability and growth
of the assets versus an only growth focused goal. This strategy is intended to preserve assets and
mitigate against volatility in the market when the funds are expected to be disbursed.
Contributions to the OPEB Trust are intended to generate long-term asset growth through
accumulated contributions until returns are sufficient to contribute to a portion of the annual
“pay-go” costs. In consultation with CERBT representatives, staff recommends setting aside 2-3
years of estimated disbursements in a more conservative portfolio. The alternative assumptions
approved by the City Council for development of the FY 2023 and FY 2024 budget do not
recommend this type of disbursement over the next ten years. Staff expects to monitor the status
of disbursements in future valuations; the next valuation will be completed as of June 30, 2023
for the development of the FY 2025 and FY 2026 budget.
Change the Pension Trust Portfolio from Moderately Conservative to Balanced:
The City’s Pension Trust is invested in a Moderately Conservative portfolio, this is the second
most conservative of five (5) portfolios: Conservative, Moderately Conservative, Moderate,
Balanced, and Capital appreciation. This report includes a recommendation to shift funding to a
Balanced portfolio, which offers higher expected returns.
The City's CERBT Fund is invested in a Strategy 1 portfolio, which offers the highest expected
return of three (3) portfolios: Strategy 1, Strategy 2, and Strategy 3. Changes to the investment
portfolio selection(s) do not require additional budgetary action, as funds may be moved from
one portfolio to another at the City’s discretion.
Modify actuary reporting from 3 to 4 years to align with CalPERS Asset Liability Management
(ALM) process and Experience Study:
Every four years, CalPERS completes a comprehensive Asset Liability Management (ALM) process
to review the capital market assumptions and strategic asset allocation to ascertain whether a
change in the discount rate, investment profile, and other economic assumptions is warranted.
Additionally, the Actuarial Office completes an Experience Study to review pension demographics
for potential modification. This most recent study was completed in November 2021 and resulted
in notable changes to reduce the discount rate from 7.0 to 6.8 percent, reduce price inflation
assumptions from 2.5 to 2.3 percent, and revise the asset allocation to target 1/3 investment in
private assets, add 5 percent leverage, and reduce public equity exposure. Revising policy
requirements for actuary reporting from 3 to 4 years will align the studies and ensure that the
City’s analysis includes the most up to date changes approved by the CalPERS board, including
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changes to economic and demographic assumptions that inform overall liability and employer
cost.
Modify actuary reporting to include a recalculation of the amortization schedule for the Unfunded
Accrued Liability (UAL) using the lower discount rate:
The annual payment to CalPERS reflects two billing components:
1) Normal Cost (‘pay-go’) for current employees, and
2) Unfunded Accrued Liability (UAL).
The UAL is realized when actual experience of plans differs from assumptions and is paid over a
20-year amortization timeline. As outlined in the policy, the City uses a lower discount rate as
compared to CalPERS to calculate the Normal Cost and contributes amounts exceeding the
required payment to the Pension Trust. At the December 6, 2022 meeting, the Finance
Committee requested that actuary reporting also include a recalculation of UAL at the lower 5.3%
discount rate. This recalculation is provided for informational purposes and does not impact
policy-directed funding levels (Attachment C).
FISCAL/RESOURCE IMPACT
Revisions and updates to the City’s Pension Funding Policy will inform the development of the
annual budget, financial planning and analysis of operation, and other long term financial
planning. The funding elements of this policy are intended to support the financial sustainability
of the organization by limiting the risk of generating long-term liabilities due to actual pension
and retiree healthcare plan experience that differs from assumptions, such as lower than
anticipated investment returns.
STAKEHOLDER ENGAGEMENT
Staff continues to use external consultants for updates on the status and forecast of long-term
liabilities associated with pension and retiree healthcare programs. As in prior years, these results
are used to inform funding policy discussions with the Finance Committee and City Council. All
communication is structured around public hearings to facilitate opportunities for community
input and provide guidance to staff in the budget development process.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the status update and
revisions to the City’s retiree benefit policy is a fiscal activity which does not involve any
commitment to any specific project which may result in a potentially significant physical impact
on the environment. CEQA Guidelines section 15378(b)(4).
ATTACHMENTS
Attachment A: Pension Funding Policy Overview and Recommended Revisions
Attachment B: Red-lined Pension Policy
Attachment C: Unfunded Accrued Liability (UAL) Amortization Schedule at 5.3% Discount Rate
APPROVED BY:
Kiely Nose, Administrative Services Director
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ATTACHMENT A: Pension Funding Policy Overview and Recommended Revisions
CalPERS Pension (baseline) Current Pension Policy Recommended Policy Revisions
Title - Pension Funding Policy (-) Retiree Benefits Funding Policy; add similar language for OPEB
Funded
Status
100% 90% -
Time
frame
30 years 15 Years (FY 2036) -
Fu
n
d
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g
Co
m
p
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n
e
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Actuarial Determined
Contribution (ADC):
▪Normal Cost (NC) or
‘pay-go’, and
▪Unfunded Accrued
Liability (UAL) amortized
over 20 years
(gains/losses)
(+) Use 6.2% discount rate for
the calculation of Pension
Normal Cost, more conservative
than CalPERS 7.0%
(+) 50% of excess BSR may be
allocated for pension costs (all
funds contribute equally)
▪(+) Use the CalPERS ALM review or other external investment projections to
inform discount rates for the calculation of supplemental contributions
▪(+) Consider alternative calculations for economic and demographic assumptions
to align with anticipated experience
Pensions (FY23/FY24)
▪(-) Discount rate reduced from
6.2% to 5.3% for NC, phase-in over
two years
OPEB (FY23/24)
▪(+) Discount rate reduced from 6.25%
to 5.75% for ADC
▪(+) Alternative Assumptions1
Employee Contributions (+) Cost-sharing with employees - -
Investment Returns - - -
In
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- (+) Pension Trust invested in a
Moderately Conservative
portfolio
(+) OPEB/Retiree Healthcare
Trust (CERBT) invested in a
Strategy 1 portfolio
Pension Trust
▪(-) Pension Trust invested in a
Balanced portfolio
▪(+) More conservative strategy
when reach 75-80% funded status
OPEB Trust
▪(+) More conservative strategy when
reach 75-80% funded status or when
actuary recommends disbursements
(first to occur); set aside 2-3 years of
estimated disbursements
1 Finance Committee on June 7, 2022 approved several alternative assumptions for OPEB ADC including a zero percent return for 2 021-22 (one-time), 5.75%
discount rate (6.25% assumed for Strategy 1), shortened amortization from 22 to 15 years, and additional funding for new staff (CMR 14112 as amend ed by
CMR 14502)
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Attachment A_Pension Funding
Policy Summary and Recommended
Revisions
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ATTACHMENT A: Pension Funding Policy Overview and Recommended Revisions
CalPERS Pension (baseline) Current Pension Policy Potential Policy Revisions
Al
l
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a
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U
s
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s
of
F
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d
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The CalPERS Trust is used to
pay retiree pension benefits
for miscellaneous and safety
plans and does not
contemplate use of the
City’s Pension Trust
Use of Pension Trust to be
addressed through annual
budget process or separate City
Council approved action. City
Manager to identify Impacts to
funding goal and timeframe
Additional Discretionary
Payments (ADPs) from PARS to
CalPERS for amounts exceeding
1-yr employer contribution
Pension Trust
▪ (+) Rate stabilization to smooth
volatility in employer
contributions, or in difficult
economic times
OPEB Trust
▪ (+) Actuarial determined disbursements
recommended to fund a portion of the
‘pay-go’ costs once investment goals
are met (above)
Re
p
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Re
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- Every three years, staff will
consult with an actuary to
inform the City Council on the
progress towards goals
▪ (-) Every four years; align with the CalPERS ALM study
- Status of Pension Trust
reported in the annual budget
process, including
recommended contributions
and potential ADPs for the
coming fiscal year
- OPEB Trust
▪ (+) Status of OPEB Trust reported bi-
annually using outside actuary
consultancy services (current practice)
(+) Indicates that this is in addition to the step to the left while (-) indicates that this is instead of the step to the left.
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Attachment A_Pension Funding
Policy Summary and Recommended
Revisions
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City of Palo Alto - Pension Retiree Benefit Funding Policy
Determination of an appropriate level for proactive Pension and Other Post-Employment
(OPEB)/Retiree Healthcare Funding is a policy decision. The overarching goal of a Pension
Retiree Benefit Funding Policy is to ensure that the City of Palo Alto avoids service-delivery
crowd-out by increasing annual pension and retiree healthcare costs. This must be balanced
against immediate impacts to service delivery in order to fund proactive contributions.
Pension: The City is statutorily required to make the CalPERS Actuarial Determined Contribution
(ADC) on an annual basis. The ADC is made up of two parts, the Normal Cost (N C), which
represents the pay-as-you-go portion of costs, and the Unfunded Accrued Liability (UAL)
payment, which represents the catch-up portion of costs. CalPERS currently calculates both the
NC and the UAL based on a discount rate of 7.06.8%. CalPERS amortizes any difference between
investment returns and that discount rate as part of its UAL calculation over 20 years. In a year
when CalPERS does not meet its target (loss) the City has to pay more over the next 20 years. In
a year when CalPERS exceeds its target (gain) the City would be able to pay less over the next
20 years. The timeframe of 20 years for amortizing gains and losses is recent; they were
amortized over 30 years through the June 30, 2018 valuation).
OPEB/Retiree Healthcare: Bi-annually, the City engages actuary consultancy services to
calculate the annual ADC to the OPEB Trust for the coming two fiscal years. Contributions to the
trust are voluntary and used to generate returns to pay the liability.
Additionally, the City recognizes the importance of ensuring that pension and retiree healthcare
obligations included in the City’s financial reports, such as the Comprehensive Annual Financial
Report (CAFR)Annual Comprehensive Financial Report (ACFR), are consistent with CalPERS.
Reports such as the CAFRACFR impact the City’s credit rating and thereby influence areas such
as bond financing that the City may seek to obtain.
However, the City also recognizes that CalPERS calculated annual costs are based on a discount
rate, annual rates of return, and other variables that might not align with actual experience nor
perhaps with expected experience. To address these shortcomings, the City is establishing
established a Pension Retiree Benefit Funding Policy to guide proactive pension and retiree
healthcare contributions to the City’s section 115 Trusts:.
•Pension Trust Fund, administered by the Public Agency Retirement Services (PARS); and
•California Employers’ Retiree Benefit Trust (CERBT) Fund for the OPEB plans,
administered by CalPERS.
This policy provides direction to the City regarding a desired funding target in relation to
CalPERS and OPEB actuary valuations, the timeframe over which to achieve that target, and
actions that are required until the target is met. There are contingencies that provide an
additional range of options if certain circumstances are met and some that require additional
actions if other criteria are satisfied.
Attachment B: Redlined Pension Funding Policy Item 3
Attachment B_Redlined
Pension Funding Policy
Item 3: Staff Report Pg. 10 Packet Pg. 24 of 473
Funding Goal and Timeframe: Through this policy, the City’s target is to fund 90% of the
CalPERS and OPEB actuary determined liability by FY 2036. The City will strive to reach the
target of 90% of the CalPERS determined liability within( 15 years timeframe). If the City only
paid the CalPERS ADC it would take at least 30 years to reach full funding of the CalPERS
determined liability. CalPERS’ 30-year timeframe to reach full funding is also predicated on
every single one of their actuarial assumptions materializing. Thus, a 15-year timeframe to fund
90% of the CalPERS determined liability represents a commitment from the City above and
beyond the CalPERS ADC.
Funding Components: In order to achieve the target of 90% funding by FY 2036, the City will
calculate what the Normal Cost portion of annual pension costs would be if a discount rate of
6.2% were used instead of the CalPERS rate for the Miscellaneous and Safety Groups across the
organization. use the CalPERS ALM survey or other external investment projections to inform
discount rates for the calculation of Pension (NC only) and OPEB (Total ADC), subject to City
Council approval; this rate is expected to differ from the rate assumed by CalPERS. This
additional cost will be included as part of the City’s standard budget process and transmitted to
the City’s Irrevocable section 115 PARS Pension Trust Fund (PARS Trust Fund or PARS) and
CERBT Trust Fund. Should the City reach its goal of 90% funding before FY 2036, the City
Manager will report the status to the City Council with a recommendation on whether the
practice should be continued, modified, or discontinued. The City Manager must identify the
impacts on the funding goal and timeframe to modify the transmission of the additional
contributions to the PARS and CERBT Trust Funds.
In addition to the contributions required by this Pension Funding Policy, the City will examine
additional opportunities for proactive contributions to the PARS and CERBT Trust Funds.
Furthermore, the City Manager will include recommendations on whether funding should be
transmitted from PARS to CalPERS as part of the annual budget process. This may change from
year-to-year depending on the circumstances and level of funding accumulated. Some years
may result in accumulating additional funding in PARS, while others may result in transferring
an amount greater than a single year of additional contributions, calculated through the lower
discount rate, to CalPERS. City Council approval is required for use of accumulated funds in
PARS either to CalPERS as an Additional Discretionary Payment (ADP) or to offset a portion of
the standard ADC.
An additional action that will does not require City Council approval is transfer of excess Budget
Stabilization Reserve (BSR) above 18.5% to the PARS Trust Fund. The BSR Policy will be
amended to confer discretion to the City Manager to make this transfer. The BSR Policy
currently confers discretion to the City Manager to transfer excess BSR above 18.5% to the
Infrastructure Reserve. Once amended, the BSR Policy will confer authority to the City Manager
to proactively fund infrastructure and pension obligation needs through transfers to the
Infrastructure Reserve and to the PARS Trust Fund. Additionally, through standard reports to
the City Council (such as Year-End, Mid-Year, or another City Manager’s Report) the City
Attachment B: Redlined Pension Funding Policy Item 3
Attachment B_Redlined
Pension Funding Policy
Item 3: Staff Report Pg. 11 Packet Pg. 25 of 473
Manager will include actions for additional contributions from funds other than the General
Fund to maintain alignment with the contributions from the General Fund via excess BSR. City
Council approval is required for these contributions from funds other than the General Fund.
The City will work to proactively monitor its pension funding position through not only its
CalPERS and OPEB actuary reports but also by continuing to use an outside actuary as a
consultant to model different scenarios. The City will continue to transmit the CalPERS reports
on an annual basis and OPEB actuary reports on a bi-annual basis.
Once every three four years, the City will consult with an outside actuary to provide an update
on the progress the City has made towards the goal of reaching a funding goal of 90% funded
status of funding of the CalPERS determined liability by FY 2036 and update the City Council.
Additional actions may come out of those reports and discussions with the City Council.
Service Delivery Outcomes: The goal of the Pension Retiree Benefit Funding Policy is to prevent
service delivery crowd-out by the increased costs of pension and retiree healthcare obligations.
If the City’s efforts to proactively contribute to the long-term pension and retiree healthcare
obligations would result in service delivery impacts in the short -term, the City Manager will
identify those impacts and recommendations to mitigate them, as appropriate, through the
budget development process.
Fiscal Impacts: If the General Fund’s revenues are projected to decline more than 7.5% year-
over-year, the City Manager will return to the City Council with recommendations addressing
the implications for the City’s proactive funding contributions for the coming year through the
budget development process.
Attachment B: Redlined Pension Funding Policy Item 3
Attachment B_Redlined
Pension Funding Policy
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CONTRIBUTION PROJECTIONS - MISCELLANEOUS
Impact of 5.3% Discount Rate Change
Attachment C: Unfunded Accrued Liability (UAL) Amortization Schedulate at 5.3% Discount Rate
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Attachment C_Unfunded Accrued Liability (UAL) Amortization Schedule at 5.3% Discount Rate
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CONTRIBUTION PROJECTION - SAFETY
Impact of 5.3% Discount Rate Change
Attachment C: Unfunded Accrued Liability (UAL) Amortization Schedulate at 5.3% Discount Rate
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CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: Consent
Lead Department: City Manager
Meeting Date: February 6, 2023
TITLE
Approval of Professional Services Agreement with Townsend Public Affairs, Inc. (C23183770) in
the Amount Not-to-Exceed $558,000 for State and Federal Legislative Advocacy Services and
Grant Consulting and Compliance Services for a Period of Three Years with the Option to Renew
for Two Periods of One Year Each; CEQA status—not a project.
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or designee to
execute a Professional Services Agreement Contract No. C23183770 with Townsend Public
Affairs, Inc. to perform state and federal legislative advocacy services and grant support and
compliance services for a term of three (3) years, with the option to review for two periods of
one (1) year each, in the amount not-to-exceed $558,000.
EXECUTIVE SUMMARY
If approved, this professional services agreement with Townsend Public Affairs, Inc. (TPA) will
provide state and federal legislative advocacy and grant support and compliance services to the
City over the coming three years. TPA was selected through a competitive solicitation process
based on the firm’s proposed strategic and collaborative approach to supporting the City’s
legislative advocacy needs and pursuit of grant opportunities. The terms of the professional
service agreement include the option to renew for two periods of one (1) year each at the City
Manager’s discretion based on TPA’s performance (considering Council feedback on services
during the length of the contract).
BACKGROUND
In fall 2022, a Request for Proposals (RFP) was conducted for grant consulting and legislative
advocacy professional services. The project scope of services – seeking and submitting grant
applications and legislative advocacy work – are closely related, therefore the RFP was jointly led
by the City Manager’s Office and the Administrative Services Department (ASD). The scope was
structured as a multi-award opportunity where the City’s expectation is that regardless of which
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firms are selected, that the firms will work in partnership with one another and the City will
advance the entire ecosystem of advocacy and grant services for the City. The chart below
describes the relationships of this work.
*The 3 green circles all relate to the grant consulting tasks. They are listed as 3 separate circles to show
that support related to grants includes more than just finding grants for the City.
Legislative Advocacy
Palo Alto has had a firm advocating on behalf of the City in both Sacramento and Washington,
DC ongoing since the early 2010s. The firms use their established relationships in the State and
Federal Capitals to ensure that Palo Alto’s needs and positions are known and considered in the
decision-making process. The existing contracts for State and Federal advocacy services expired
on December 31, 2022 after being extended a few times throughout the length of the contracts.
The City Council adopted a legislative workplan in addition to the 2023 Legislative Guidelines on
November 7, 20221. The workplan included increased interaction between the full Council and
the legislative advocates during the legislative session. In recent years, the lobbyist has made at
least quarterly updates to the Policy and Services Committee and updates to the full Council as
action was needed on legislative positions. In the Council approved 2023 workplan, the frequency
of legislative discussions with the full Council have increased to replace the Committee-only
discussions. The 2023 workplan also includes a touch point early in the year with legislators
representing Palo Alto (intended as a legislative reception but this year it will likely be individual
legislator visits to Council due to scheduling difficulties).
1 Report (pdf page 168; CMR 14913): https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/agendas-minutes/city-council-agendas-minutes/2022/20221107/20221107pccsm-amended-linked-q.a-
2.pdf.
Minutes: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-
council-agendas-minutes/2022/20221107/20221107amccsm.pdf
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Grant Support Consultant Services
In summer 2022, under staff authority, staff executed a 10-month contract with California
Consulting to improve the City’s position in seeking opportunities and applying for grants to
enhance and increase service levels to the community. In addition, the consultant assisted the
City with the standardization of the City’s process for identifying, applying, tracking, and
reporting of grants. The agreement with California Consulting expires in January 2023.
ANALYSIS
Project Description
Legislative Advocacy. Working with City staff and Council, TPA will implement the City’s 2023
legislative workplan as approved by the Council in November 2022. TPA will implement
subsequent year workplans as well in a fashion that mirrors the Council direction in June 2021 to
be strategic in the approach to legislative advocacy in both Sacramento and Washington, DC.
With regular scheduled discussions with the full Council and the Policy and Services Committee,
TPA will inform the Council of updates in the state and federal capitals and receive feedback from
the Council on areas of interest and concern. Staff will regularly communicate with TPA to keep
progressing the City‘s legislative goals.
With the Policy and Services Committee discussion on November 3, 2022 and the full Council
discussion on November 7, 2022, the Council received an update on the happenings in
Sacramento and Washington, DC and planned out the work for 2023 in addition to adopting the
City’s Legislative Guidelines. Staff took this information into consideration in evaluating the
proposals for legislative services and factored it into the scope of services included in the
attached contract. In this 2023 legislative year, staff looks forward to the Council having
additional planned interactions with the lobbyist team based on the 2023 workplan.
Grant Support Consultant Services. Working with City staff, priorities and funding needs will be
assessed at the onset of the engagement by TPA. Working together with the City’s legislative
advocacy teams, TPA will research grant opportunities and assist the City with prioritizing grants
to pursue, based on funding priority and a variety of factors, such as eligibility and feasibility of
compliance requirements. TPA will also develop and submit the City’s grant proposal and provide
grant administration support post-award to ensure that the City meets reporting and compliance
requirements.
Summary of Competitive Solicitation Process
On August 31, 2022, a Request for Proposals (RFP) for legislative advocacy and grant consulting
services was posted on PlanetBids, the City’s eProcurement portal, as a multi-award RFP. The
proposal period was 34 calendar days and included a pre-proposal meeting to review work scope
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and answer questions that prospective proposers may have. Proposals were received by seven
consulting firms and six of these proposals were considered responsive, listed below:
•Alcalde & Fay (grant consulting and legislative services)
•California Consulting Inc. (grant consulting)
•Darnell Shaw Environmental, SPC. (grant consulting and legislative services)
•Engineering Solutions Services (grant consulting)
•Townsend Public Affairs, Inc. (grant consulting and legislative services)
•Van Scoyoc Associates, Inc. (legislative services)
Table 1 below summarizes the RFP process:
Table #1: Summary of Request for Proposal Process
Request for Proposals Name/Number Grant Consulting and Legislative
Advocacy Services (RFP 183770)
Total Days to Respond to RFP August 31 to October 4, 2022
(34 calendar days)
Pre-Proposal Meeting September 6, 2022
# of Company Attendees at Pre-Proposal Meeting Six
# of Proposals Received Seven*
Proposal Price Range $40,000 - $186,000, annually
*Individual proposals covered a variety of strategy areas (grants and legislative advocacy)
An evaluation committee consisting of Administrative Services, Public Works, and City Manager‘s
Office convened to review proposals and conduct interviews with the top three scoring firms.
The committee reviewed the firm’s qualifications and submittal in response to the criteria
outlined in the RFP, including work quality, the consultant’s experience and effectiveness, quality
and completeness of the proposal, prior performance, the proposer’s financial stability and
ability to provide services. The committee also evaluated each firm’s proposed strategy and
approach to supporting the City in these service areas.
TPA stood out in grant consulting services because they provide assistance throughout the entire
grant process from searching for grants to application to grant award and to ensuring the City
knows the requirements for the grant and can comply with them in a timely manner. For state
legislative advocacy, TPA showed a breadth of knowledge on relevant issues and key players and
expressed how they would use that information to benefit the City. Lastly, for federal advocacy,
TPA’s scope included connections to federal agencies to stay informed of potential impacts to
the City. Overall, TPA’s expressed ability to connect grants, state, and federal advocacy work
efficiently on behalf of the City made them the forerunner for this contract for all three service
task areas.
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TPA was selected by the evaluation committee as the firm best qualified to support the City’s
legislative advocacy and grant support and compliance service needs. TPA has been the City’s
state legislative advocacy firm for the past eight years and most recently has assisted the City
with securing over $7.2 million in direct funding from the State (Fire Station 4 and Newell Road
Bridge Replacement) and securing a $26.6 million award for Project Homekey. In addition to
these recent funding successes, TPA has also helped establish Palo Alto’s presence in Sacramento
presenting the City as a thoughtful, strategic partner advocating for local communities. TPA’s
collaborative and strategic approach to advocacy and funding will position the City to explore all
funding opportunities through the state and federal legislative channels.
FISCAL/RESOURCE IMPACT
This action approves professional services for contract costs that are included in the City
Manager’s Office and Administrative Services Department FY 2023 General Fund Adopted
Budget. No Council action is needed to adjust the budget.
STAKEHOLDER ENGAGEMENT
These contracts continue resources to staff in departments throughout the organization and has
drawn assistance of a variety of department representatives for the evaluation of these proposals
and feedback of what is needed in work scope. Departments such as Public Works, City
Manager’s Office, and Administrative Services were consulted and coordinated with internally
on selection of these recommended firms. Staff also consulted the Council in the legislative
workplan for 2023 which is the basis for the work planned by the proposed firm. Council will also
interact in public meetings with the selected firm.
ENVIRONMENTAL REVIEW
Approval of this contract is not a project under the California Environmental Quality Act (CEQA),
as it is an administrative activity that will not result in direct or indirect changes in the
environment. (CEQA Guidelines 15378(b)(5).)
ATTACHMENTS
Attachment A: Contract with Townsend Public Affairs, Inc.; Contract #C23183770
APPROVED BY:
Ed Shikada, City Manager
Report #: 2212-0512
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Professional Services
Rev. Dec.15, 2020 Page 1 of 28
CITY OF PALO ALTO CONTRACT NO. C23183770
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND
TOWNSEND PUBLIC AFFAIRS, INC.
This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of
January, 2023 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and TOWNSEND PUBLIC AFFAIRS, INC., a
California co, located at 1401 Dove Street, Ste. 330, Newport Beach, California, 92660
(“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein
by this reference:
RECITALS
A.CITY intends to be represented in all state and federal legislative advocacy matters and
requires grant consulting and compliance services (the “Project”) and desires to engage a
consultant for representation and professional services in connection with the Project (the
“Services”, as detailed more fully in Exhibit A).
B.CONSULTANT represents that it, its employees and subconsultants, if any, possess the
necessary professional expertise, qualifications, and capability, and all required licenses and/or
certifications to provide the Services.
C.CITY, in reliance on these representations, desires to engage CONSULTANT to provide
the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this
Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described
in Exhibit A in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM.
The term of this Agreement shall be from the date of its full execution through December 31, 2025
with the option to renew for an two periods of one (1) year each, unless terminated earlier pursuant
to Section 19 (Termination) of this Agreement. CITY shall notify CONSULTANT of its intent to
exercise its option to renew in writing no later than ninety (90) days before the end of the term 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
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OF PERFORMANCE”. Any Services for which times for performance are not specified in this
Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and
timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery
of damages for delay if the extension is required due to the fault of CONSULTANT.
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 Five Hundred Fifty-
Eight Thousand Dollars ($558,000.00). 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.
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 zero Dollars ($0) 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
Five Hundred Fifty-Eight Thousand Dollars ($558,000.00), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the
proper completion of the Project, but which is not included within the Scope of Services
described at Exhibit A. CITY may elect to, but is not required to, authorize Additional
Services up to the maximum amount of compensation set forth for Additional 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
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Additional Services in this Section 4. Performance of and payment for any Additional
Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly
invoices to the CITY describing the 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
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
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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.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the
Services to be performed under this Agreement without the prior written authorization of the City
Manager or designee. In the event CONSULTANT does subcontract any portion of the work to
be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and
omissions of subcontractors.
Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY
agrees that subcontractors may be used to complete the Services. The subcontractors authorized
by CITY to perform work on this Project are:
CONSULTANT shall be responsible for directing the work of any subcontractors and for any
compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning
compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts
and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with
the prior written approval of the City Manager or designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Niccolo De Luca,
Telephone: (510) 835-9050, Email: ndeluca@townsendpa.com, 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
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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.
CITY’s Project Manager is Chantal Cotton Gaines, City Manager’s Office, 250 Hamilton Avenue,
7th Floor, Palo Alto, CA, 94301, Telephone: (650) 329-2572, Email:
Chantal.Gaines@CityofPaloAlto.org. 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,
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or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its
officers, employees, agents or contractors under this Agreement.
16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not
operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under
this Agreement is effective unless it is in writing in accordance with Section 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.
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SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole
or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written
notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material
obligations under this Agreement, in addition to all other remedies provided under this Agreement
or at law, the City Manager may terminate this Agreement sooner upon written notice of
termination. Upon receipt of any notice of suspension or termination, CONSULTANT will
discontinue its performance of the Services on the effective date in the notice of suspension or
termination.
19.2. In event of suspension or termination, CONSULTANT 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.
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SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this
Agreement is an officer or employee of CITY; this provision will be interpreted in accordance
with the applicable provisions of the Palo 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:
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(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.
(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.
26.1. 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,
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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.
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,
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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.
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.
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SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is
selected below, is hereby attached and incorporated into this Agreement by reference as though
fully set forth herein:
EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS
ARE ATTACHED.
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CONTRACT NO. C3183770 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
TOWNSEND PUBLIC AFFAIRS, INC.
By:_________________________________
Name: Christopher Townsend
Title: President
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EXHIBIT A
SCOPE OF SERVICES
CONSULTANT will provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”.
CONSULTANT will represent CITY in all federal and state legislative advocacy matters
including grant seeking and funding advocacy. CONSULTANT will also assist the City in the
follow up requirements necessary for grants the City successfully obtains. The
CONSULTANT'S objective will be to execute a comprehensive legislative strategy on behalf of
CITY.
CONSULTANT will not attempt to achieve the CITY'S goals while disadvantaging another
entity, city, or county. When possible, CONSULTANT will work towards win-win scenarios. In
order to achieve the CITY'S objectives, advocacy must encompass an understanding of all
matters related to the CITY'S legislative program.
Task 1: State Legislative Advocacy Services and Deliverables
CONSULTANT will continue to utilize the following strategic and comprehensive approach to
provide state legislative advocacy services to the City. The deliverables for state legislative
advocacy services are embedded within the scope below.
CONSULTANT will advocate in Sacramento on behalf of the City of Palo Alto. These efforts
will include:
1. Conduct Detailed Orientation: CONSULTANT will utilize a comprehensive onboarding
process that includes extensive meetings with various relevant members of City
leadership and key City departments to help develop a strategic plan that is carefully
tailored to satisfy the needs of the City, as well as designed for maximum success in the
current political climate and funding environment.
2.Develop Legislative Strategy: Utilizing the information gathered during the onboarding
process and work the City has done in recent years, CONSULTANT will coordinate with
the City to develop an official legislative platform and strategy that represents the City’s
priorities in Sacramento. This blueprint will be shared with key stakeholders in the State
Legislature and Governor’s Administration.
3.Implement the Legislative Strategy: CONSULTANT will advocate for the City’s
legislative agenda utilizing the following methods:
4. Build and Strengthen Relevant Relationships: CONSULTANT has cultivated a network
of valuable relationships that will be leveraged to promote the City’s legislative agenda.
These relationships include:
a.City Legislative Delegation (State Senator and State Assembly member)
b. Governor’s Administration and Agency Leadership
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c. State Legislative Leadership
d. Key Legislative Committees
i. Senate Budget Committee
ii. Assembly Budget Committee
iii. Senate Governance and Finance Committee
iv. Assembly Local Government Committee
v. Senate Housing Committee
vi. Assembly Housing and Community Development Committee
5. Leverage Relationships for Strategic Advocacy Plan: CONSULTANT will engage
various techniques to leverage its network of key relationships on behalf of the City:
a. Schedule meetings for the City to discuss relevant legislation
b. Prepare all briefing materials and talking points for the City
c. Brief legislative offices and stakeholders on the City’s legislative agenda
d. Follow-up on meetings to ensure commitments and deliverables are being met
6. Coordinate Advocacy Trips: CONSULTANT will work with the City to coordinate
advocacy trips to Sacramento to meet with the City’s legislative delegation, as well as
legislators that serve on committees relevant to the City’s agenda. Furthermore, whenever
possible, CONSULTANT will also schedule site visits by legislators to the City.
7. Track Legislation: CONSULTANT will identify, analyze, and monitor all bill
introductions and amendments relevant to the City’s legislative platform and assess their
potential impact on the City.
8. CONSULTANT will ensure that the City receives relevant information in a timely
manner on such legislation.
9. Craft Testimony and Position Letters: CONSULTANT will prepare and submit written
and verbal testimony regarding legislation relevant to the City.
10. CONSULTANT will also draft and deliver position letters to legislators and key officials
on specific bill language.
11. Draft Bill Language: CONSULTANT will draft language and amendments for relevant
legislation, as required to protect and promote the City’s agenda.
12. State Budget Funding Opportunities: In an effort to maximize state funding,
CONSULTANT will work with the City to identify projects and other funding priorities
that may be suitable for funding through the State Budget.
13. CONSULTANT will coordinate with the City to develop supporting materials for the
budget request.
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14. CONSULTANT will also work with members of the City’s state legislative delegation,
along with the Assembly and Senate Budget Committees, to gain support for the
inclusion of the City’s project in the final State Budget approved by the Legislature.
15. Strategic Communications Guidance: As directed, CONSULTANT advocates will
recommend strategic media strategies to improve the image of the City in the state and
effectively communicate the City’s policy priorities and positions to a broad audience as
needed. Examples include advice on Op-Ed materials, strategizing with media outlets for
visits with the City’s legislative delegations, and delivering state and local responses to
legislative issues.
16. Provide Progress Reports: CONSULTANT will confer regularly with the City on our
activities.
17. CONSULTANT will provide timely electronic reports on the status of all legislative
activity, such as bill language, amendments, and committee analyses.
18. In addition to written reports, CONSULTANT will be available to the City for
conference calls, in-person briefings, and meetings.
19. Prepare and File Lobbying Disclosure Reports: CONSULTANT will prepare and file, on
behalf of the City, all applicable state lobbying disclosure reports.
Task 2: Federal Legislative Advocacy Services and Deliverables
The deliverables for federal legislative advocacy services are embedded within the scope below.
CONSULTANT will utilize the following strategic and comprehensive approach to provide
federal legislative advocacy services to the City.
1. Conduct Detailed Orientation: CONSULTANT will utilize a comprehensive onboarding
process that includes extensive meetings with various relevant members of City
leadership and key City departments to help develop a strategic plan that is carefully
tailored to satisfy the needs of the City, as well as designed for maximum success in the
current political climate and funding environment.
2. Develop Legislative Strategy: Utilizing the information gathered during the onboarding
process, CONSULTANT will coordinate with the City to develop an official legislative
platform and strategy that represents the City’s priorities in Washington, DC. This
blueprint will be shared with key stakeholders in the Congress and the Presidential
Administration.
3. Implement the Legislative Strategy: CONSULTANT will advocate for the City’s
legislative agenda utilizing the following activities (not limited to)
4. Leverage Relationships for Strategic Advocacy Plan: CONSULTANT will engage
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various techniques to leverage our network of key relationships on behalf of the City:
a. Schedule meetings for the City to discuss relevant legislation
b. Prepare all briefing materials and talking points for the City
c. Brief legislative offices and stakeholders on the City’s legislative agenda
d. Follow-up on meetings to ensure commitments and deliverables are being met o
Coordinate
5. Advocacy Trips: CONSULTANT will work with the City to coordinate advocacy trips to
Washington, DC to meet with the City’s legislative delegation, as well as legislators that
serve on committees relevant to the City’s agenda. Furthermore, whenever possible,
CONSULTANT will also schedule site visits by legislators to the City.
6. Track Legislation: CONSULTANT will identify, analyze, and monitor all bill
introductions and amendments relevant to the City’s legislative platform and assess their
potential impact on the City.
7. CONSULTANT will also track other initiatives occurring in Washington, DC that could
impact the City (e.g., new programs with local impacts; relevant funding opportunities;
etc.)
8. Craft Testimony and Position Letters: CONSULTANT will prepare and submit written
and verbal testimony regarding legislation or initiatives relevant to the City.
9. CONSULTANT will also draft and deliver position letters to relevant agencies and
legislators.
10. Draft Bill Language: In partnership with legislators, CONSULTANT will draft language
and amendments for relevant legislation, as relevant and feasible to promote the City’s
agenda.
11. Federal Earmark / Community Project Funding Opportunities: In an effort to maximize
federal funding, CONSULTANT will work with the City to identify projects and other
funding priorities that may be suitable for funding through the Federal Earmark process.
12. CONSULTANT will coordinate with the City to develop supporting materials for the
earmark request.
13. CONSULTANT will also work with members of the City’s federal legislative delegation
to gain support for the inclusion of the City’s project.
14. Build and Strengthen Relevant Relationships: CONSULTANT has cultivated a network
of valuable relationships that will be leveraged to promote the City’s legislative agenda.
These relationships will include:
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a. City Legislative Delegation (US Senators and Representative representing Palo
Alto area)
i. Administration
ii. White House Office of Intergovernmental Affairs
iii. Department of Agriculture
iv. Department of Commerce
v. Department of Education
vi. Department of Homeland Security
vii. Department of Housing and Urban Development
viii. Department of the Interior
ix. Department of Justice
x. Department of Labor
xi. Department of Transportation
xii. Army Corps of Engineers
xiii. Bureau of Reclamation
xiv. Economic Development Administration
xv. Environmental Protection Agency
xvi. Fish and Wildlife Service
xvii. National Marine Fisheries Service
xviii. National Park Service
b. Federal Agencies
i. Army Corps of Engineers
ii. Bureau of Justice Assistance
iii. Community Oriented Policing Services (COPS)
iv. Employment and Training Administration
v. Environmental Protection Agency
vi. Federal Emergency Management Agency
vii. Federal Highway Administration
viii. Federal Railroad Administration
ix. National Endowment for the Arts
x. National Park Service
xi. US Economic Development Administration
xii. US Fish and Wildlife Service
xiii. US Forest Service
c. House Appropriations Committee
d. Energy and Commerce Committee
e. House Ways and Means Committee
f. Transportation and Infrastructure Committee
g. Municipal Organizations
h. US Conference of Mayors
i. National League of Cities
j. Mayors and CEOs for U.S. Housing Investment
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k. Mayors and CEOs for U.S. Housing Investments
15. Provide Progress Reports: CONSULTANT will confer regularly with the City on our
activities.
16. CONSULTANT will provide timely electronic reports on the status of all legislative
activity, such as bill language, amendments, and committee analyses. In addition to
written reports, CONSULTANT will be available to the City for conference calls, in-
person briefings, and meetings.
17. Prepare and File Lobbying Disclosure Reports: CONSULTANT will prepare and file, on
behalf of the City, all applicable federal lobbying disclosure reports.
Task 3: Grant Support Services
Task 3A: Funding Needs Assessment and Citywide Prioritization
1. Conduct Detailed Orientation: CONSULTANT will utilize a comprehensive onboarding
process that includes extensive meetings with various relevant members of City
leadership and key City departments to develop a strategic plan that is tailored to satisfy
the needs of the City, as well as designed for maximum success in the current political
climate and funding environment.
2. Craft Strategic Funding Plan: Utilizing the information gathered during the onboarding
process, CONSULTANT will coordinate with CITY to develop a proactive and
comprehensive strategic funding plan that serves the needs of the City’s priorities. The
plan will identify City projects, outline and prioritize multiple funding options for each
project, and develop a specific plan of work tailored for each project. The plan will also
identify key criteria or restrictions that will help the City assess the cost/benefit ratio for
each grant opportunity.
3. Identify, Research, and Monitor Grant Funding Opportunities: CONSULTANT will
utilize list-serve subscription programs, funding workshops, agency canvassing, and other
networking tactics to ensure every potential opportunity is identified and reviewed for
relevance with the City’s projects.
4. CONSULTANT will Share these opportunities with CITY for further assessment and
determination if a grant application is warranted. CITY will also receive a grant matrix of
funding programs that is updated regularly as new opportunities arise and to assist with
workload management and prioritization.
Deliverables for Task 3A:
1. Meet with City staff to ascertain needs and goals
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2. Conduct background research as requested by City
3. Provide advice on best grants for City to pursue, based on Strategic Funding Plan and
grant requirements and guidelines
4. Regular communication via email, phone, or video conference regarding upcoming grant
opportunities.
5. Strategic Funding Plan and Grant Matrix of Funding Programs that includes elements
outlined above
Task 3B: Grant Writing Services
1. Community Outreach: CONSULTANT will assist CITY with community outreach
required for grant applications by ensuring the City is aware of specific requirements,
help develop materials that capture all elements required by the grant, and compile the
data following the outreach to include in the application.
2. Grant Application Development and Submittal: CONSULTANT will develop, draft,
submit, and follow up on each City grant application through the following process:
a. Establishment of Clear Accountabilities: To avoid confusion and inefficient and
to ensure that CITY is burdened as little as possible as CONSULTANT pursues a
grant opportunity, CONSULTANT will coordinate with CITY to ensure the
assignment of responsibilities and tasks are made clear.
b. Provide Overview of Full Application Requirements: To ensure that the program
is a strong fit for the City’s project, CONSULTANT will provide CITY with a
detailed overview of the requirements for each grant program and corresponding
application. This will include:
i. Application timeline
ii. Eligible project types
iii. Funding availability and award maximum and minimums
iv. List of application components, including proposal questions and any
required
v. Attachments
c. Assemble Project Background and Details: CONSULTANT will conduct a
detailed informational interview with City staff most involved with each project
to gain a full understanding of the project background and scope details necessary
for developing the grant proposal and addressing all application questions.
d. Coordinate Technical Project Details: For technical application components such
as site plans, detailed cost estimates, project timelines, engineering plans, and cost
benefit analyses, CONSULTANT will coordinate with City staff to compile all
necessary attachments and ensure consistency across all elements of the
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application.
e. Draft Written Proposal: CONSULTANT will fully draft all narrative components
of the application and, when applicable, will indicate where additional input or
project detail from the City could be provided during the proposal review process.
f. Incorporate Feedback to Finalize Proposal: Well ahead the of the application
deadline, CONSULTANT will provide CITY with a full draft for review and
feedback. CONSULTANT will incorporate any additional details or revisions
provided during this process to finalize the grant application and will obtain
CITY’S approval for the final version of the application prior to submission.
g. Submit Completed Application: CONSULTANT will ensure that applications are
submitted prior to the deadline, whether the submission is electronic or through
hard copies, in accordance with submission instructions for each individual
program. For hard copy submissions, CITY will print and package applications
according to submission instructions and will ship applications through a reliable
carrier service such as FedEx in order to provide the City with tracking and
delivery confirmation for the application.
h. CONSULTANT will also obtain a receipt for proof of submission and provide a
final copy of all submitted application documents to CITY.
3. Funding Advocacy: Throughout grant application process CONSULTANT will leverage
relationships with relevant officials and program officers in various state and federal
funding agencies to ensure that grant applications are aligned with the goals of the
specific grant program and that the applications are well-crafted and well positioned for
funding.
Deliverables for Task 3B:
1. Develop/draft, finalize, and submit all sections of grant applications, with direction of
CITY.
2. Monthly reports that advise CITY of status of grants in progress, grants submitted, and
grants awarded.
3. Ensure timelines for grant submittal are met.
Task 3C: Grant Compliance Support
1. Post-Grant Submittal Advocacy: CONSULTANT will frequently contact legislators and
agency officials to follow up on the status of a grant application and promote its need and
urgency. This will include drafting letters of support after grant submissions and
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distributing them to legislators for their consideration. In addition, CONSULTANT will
work with legislators to reach out to individual granting agencies to provide background
on City’s projects and convey their support for those projects.
2. Post-Award Grant Administration and Compliance: CONSULTANT will also assist, as
needed, with post-award administration and compliance for all grant applications
submitted by CONSULTANT on behalf of CITY. This assistance will include interacting
with granting agencies on behalf of the City, providing support for the drafting and
submission of required reports, evaluations, and other tasks related to the successful
monitoring of and compliance with the program requirements.
a. On an as needed basis, CONSULTANT will provide post-award grant
administration and compliance technical expertise and/or support, as agreed upon
between the CONSULTANT and CITY for grants not submitted by
CONSULTANT.
b. Scope and fees for these ADDITIONAL SERVICES will be agreed upon by
CONSULTANT and CITY and a TASK ORDER issued.
3. Comprehensive Follow-Up on Unsuccessful Applications: Despite all best efforts, some
grant applications are not selected for funding. In those instances where grant
applications are unsuccessful, CONSULTANT will work with the relevant state and
federal funding agencies to set up in-person or telephone debriefing sessions to discuss
the grant applications and how to best revise the grant applications for the next funding
round to ensure success.
4. Provide Monthly Progress Reports: CONSULTANT will confer regularly with CITY on
grant opportunities, progress reports, and other activities. CONSULTANT will provide
timely electronic monthly reports on the status of all funding activity, such current
funding opportunities, current applications, submitted applications, and post-grant
submittal advocacy, and a summary of activities taken during the previous month and the
status. In addition to written reports, CONSULTANT will be available to the City for
conference calls, in person briefings, and meetings.
Deliverables for Task 3C:
1. Monthly reports that detail grant compliance activities, current and upcoming, and state
and/or federal legislative advocacy work/support.
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EXHIBIT A-1
PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and
conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are
incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities,
professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO.
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:
2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of this
Task Order and warrant that I have authority to
sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number
of days/weeks specified below. The time to complete each milestone may be increased or
decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so
long as all work is completed within the term of the Agreement. CONSULTANT shall provide a
detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the
notice to proceed (“NTP”) from the CITY.
Milestones
Completion
Number of Days/Weeks (as specified below)
from NTP
Task 1: State Legislative Services As directed by the City Project Manager within
the term of the agreement.
Task 2: Federal Legislative Services As directed by the City Project Manager within
the term of the agreement.
Task 3: Grant Support and Compliance
Services Includes A, B and C below
A. Funding Needs Assessment and Citywide
Prioritization, as described in Exhibit “A”
As directed by City Project Manager within the
term of agreement.
B. Grant Writing Services, as described in
Exhibit “A”
As directed by City Project Manager within the
term of agreement.
C. Grant Compliance Support, as described
in Exhibit “A”
As directed by City Project Manager within the
term of agreement.
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or
agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in
Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case
of Additional Services, provided in all cases that the schedule of performance shall fall within the
term as provided in Section 2 (Term) of this Agreement.
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EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms
and conditions of this Agreement, and as set forth in the budget schedule below. Compensation
shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed
budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of
the tasks or categories listed below, provided that the total compensation for the Services,
including any specified reimbursable expenses, and the total compensation for Additional Services
(if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this
Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and
Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or
expenses incurred for which payment would result in a total exceeding the maximum amount of
compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE
TASK NOT TO EXCEED AMOUNT
Task 1
(Grant Consulting and Compliance Services) $144,000.00
Task 2
(Federal Legislative Advocacy Services) $216,000.00
Task 3
(State Legislative Advocacy Services) $342,200.00
Less: Discount for Bundled Cost Structure
(Tasks 1, 2, and 3) ($144,000.00)
Sub-total for Services $558,000.00
Reimbursable Expenses (if any) $0.00
Total for Services and Reimbursable Expenses $558,000.00
Additional Services (if any, per Section 4) $0.00
Maximum Total Compensation $558,000.00
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead,
administrative support time/overtime, information systems, software and hardware,
photocopying, telecommunications (telephone, internet), in-house printing, insurance and
other ordinary business expenses, are included within the scope of payment for Services and
are not reimbursable expenses hereunder.
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Reimbursable expenses, if any are specified as reimbursable under this section, will be
reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will
be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
A. Travel outside the San Francisco Bay Area, including transportation and meals, if
specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s
policy for reimbursement of travel and meal expenses.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges, if specified as reimbursable, will be reimbursed at actual
cost.
All requests for reimbursement of expenses, if any are specified as reimbursable under this
section, shall be accompanied by appropriate backup documentation and information.
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EXHIBIT D
INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE
CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW,
AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR
AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$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.
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B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER
THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE
INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE
INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS
POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE
CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE
OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT
OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY
WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE
FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL:
HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569
OR
HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP
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CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: CONSENT AGENDA
Lead Department: Human Resources
Meeting Date: February 6, 2023
TITLE
Adoption of Memorandum of Agreements with International Association of Firefighters, Local
1319 and Service Employees International Union, Local 521; CEQA status—not a project
RECOMMENDATION
Staff recommends that Council adopt:
1. A new memorandum of agreement between the City of Palo Alto and the International
Association of Firefighters Local 1319 (IAFF) effective upon adoption through June 30,
2025
2. A new memorandum of agreement between the City of Palo Alto and the Service
Employees International Union Local 521 (SEIU) effective upon adoption through
December 31, 2024.
BACKGROUND
In accordance with California State law regulating local public agencies, the City of Palo Alto
meets and confers in good faith with our recognized labor organizations. The teams of
negotiators representing the City, which were comprised of outside counsel, Human Resources
staff, and management representatives, met with labor representatives and successfully
reached Tentative Agreements on a successor Memorandum of Agreement (MOA) to the prior
MOAs for both bargaining groups.
The City of Palo Alto currently has 567 FTE that are covered under the SEIU MOA. Employees
within this bargaining unit work in all areas of City service such as our Utilities, Community
Services, Public Works, and Libraries. SEIU is the City’s single largest bargaining group and
represents non-supervisory employees. The prior agreement with SEIU was in effect until
December 31, 2022.
The City of Palo Alto currently has 90 FTE covered under the IAFF MOA. Employees with this
bargaining unit work in the areas of fire emergency medical services and fire suppression,
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prevention, and inspection services. The prior agreement with IAFF was in effect until
December 31, 2022.
DISCUSSION
The City’s workforce retention and recruitment strategy focuses on total compensation and
benefits to minimize turnover while increasing the flexibility of compensation. The goal of the
City’s compensation philosophy is to recruit and retain excellent public employees who can in
turn provide exemplary service to our community. As a service-based organization, the City
recognized that people (also referred to as ‘personnel’) are critical to achieving our mission as
an organization and providing the services our community requires, requests, and desires.
Over the past several years, the City has faced consistent difficulties in recruiting and retaining
personnel in key areas of service. A variety of impacts, including the ongoing economic trend of
voluntary resignations known as the Great Resignation, brought these recruitment and
retention difficulties to a wider array of City departments and services. As of November 2022,
the City had 154 vacant positions out of 1,025 total full-time authorized positions. This
represents a citywide vacancy rate of 15% and a 10- year high. As discussed during the FY2023
budget development and despite the continued implementation of expedited hiring practices,
this high level of vacancies has not started to decline.
To meet these challenges, the City has developed both short- and long-term strategies for
recruiting new talent and maintaining our existing workforce. This led to the development of a
market survey methodology that would target a competitive market placement positioning the
City of Palo Alto as an Employer of Choice, as well as prioritizing base salary and flexibility with
an emphasis in employee choice in benefits. The agreements before Council have been
collaboratively negotiated with our labor partners to further these shared goals.
The following summarizes the recommended changes to the terms of the agreements:
SEIU 521 - Summary
•4% general salary increase upon adoption and a 4% general salary increase in the first
full pay period following January 1, 2024
•Targeted Market Adjustments upon adoption in alignment with benchmark studies
•One-time discretionary cash payment of $1,200 per employee upon adoption
•Health Benefits Contributions – City contributions increase by 4% to $2,350 upon
adoption for 2023 and up to 4% in 2024 (this reflects a sharing of expected cost
increases, similar to prior terms)
•Addition of one floating holiday in recognition of days of historical significance
•Increased ability to expedite the hiring and promotional processes for example through
the use of flexibly staffed classifications.
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IAFF 1319 - Summary
•4% general salary increase in the first full pay period following July 1, 2023, and 4%
general salary increase in the first full pay period following July 1, 2024
•Targeted Market Adjustment upon adoption and the implementation of an additional
step in the salary range in alignment with benchmark studies
•Health Benefits Contributions – City’s contributions will be up to $2,260 per month. This
is contribution, which reflects a 4% increase, brings IAFF into alignment with
Management and Professional employees and will not increase in Year 2 of the contract,
as employees will instead be provided with flexible compensation to increase employee
choice.
•Flexible Compensation – increase base salary in order to provide more flexibility for
employees with different goals and interests allowing choices for employees
o $100 per month compensation upon adoption
o Additional $100 per month (for a total of $200/month) effective January 2024
•Addition of one floating holiday in recognition of days of historical significance (In-lieu
Holiday Pay)
These agreements are before Council for adoption in a timely manner to the expiration of
existing contracts due to the collaborative nature of this round of negotiations with the goal to
not only maintain positive workforce interactions but most importantly to maintain the City’s
ability to ensure the good and efficient services for the community. These agreements, in
addition to steps taken with the Management and Professional group in December, will aid the
City in meeting critical service delivery needs and staffing key projects identified by the Council
and community.
FISCAL/RESOURCE IMPACT
Approval of the staff recommendations outlined in this report will result in cumulative costs of
approximately $5.4 million in the General Fund ($14.6 million in all funds) over the term of the
SEIU agreement, which extends two years (January 2023 - January 2025), and approximately
$7.5 million in the General Fund ($7.5 million in all funds) over the term of the IAFF agreement,
which extends two and a half years (January 2023 – June 2025). Ongoing annual costs for these
agreements once the contract term ends are estimated at $7.0 million in the General Fund and
$12.2 million in all funds.
The FY 2023 Adopted Budget and FY 2024 – 2033 Long Range Financial Forecast (LRFF) includes
a level of modeling and reserves to plan for additional costs resulting from new labor
agreements. Also on the Council’s February 6, 2023 agenda is a revised FY 2024-2033 LRFF
which has restated the City’s forecast in alignment with the current status of labor discussion
including the terms in these recommended agreements. Staff acknowledge that this revised
forecast reflects projected deficits however, as noted earlier, has planned the use of reserves to
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ensure the City can support the financial impacts of these contracts during this uncertain
economic time. Ongoing, staff expect that continued economic recovery as well as a more
diverse revenue base will assist in ensuring the ongoing funding for these costs can be
addressed.
For funds other than the General Fund, no specific reserve for these increases were allocated,
however sufficient funding remains in these funds through either appropriated funds or
reserves including fund balance. Salary expenses will be monitored throughout FY 2023
citywide and appropriate adjustments will be recommended, if necessary, to align appropriated
expenses with projected costs. Effective in FY 2024 and FY 2025, staff will include these
compensation adjustments in the budget development process.
STAKEHOLDER ENGAGEMENT
City staff will post the Memorandum of Agreements and salary schedules on the City’s website
after Council adoption for public access. In addition, Human Resources will communicate the
changes to the terms of these agreements to support employee retention and highlight in job
postings to attract new talent and fill vacancies.
POLICY IMPLICATIONS
The recommended changes to the terms of both contracts are within Council authorized
direction.
ATTACHMENTS
Attachment A: SEIU Memorandum of Agreement
Attachment B: IAFF Memorandum of Agreement
Attachment C: SEIU Salary Schedule
Attachment D: IAFF Salary Schedule
APPROVED BY:
Sandra Blanch, Human Resources Director
Report #: 2301-0719
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CITY OF PALO ALTO
Memorandum of Agreement City of Palo Alto and Service Employees International Union (SEIU) Local 521
January 1, 2019 – December 31, 2021January 30, 2023 – December 31, 2024
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TABLE OF CONTENTS
PREAMBLE ....................................................................................................................... 6
ARTICLE I – RECOGNITION .......................................................................................... 6
Section 1 - Recognition. .................................................................................................. 6
Section 2 - Protection of Unit. ........................................................................................ 6
ARTICLE II - NO DISCRIMINATION............................................................................. 7
Section 1 – Discrimination.............................................................................................. 7
Section 2 - Right to Join the Union. ................................................................................ 7
ARTICLE III – UNION MEMBERSHIP ........................................................................... 7
Section 1 - Notice............................................................................................................ 7
Section 2 – Payroll Deductions ....................................................................................... 8
Section 3. Certification of Union Membership. .............................................................. 8
Section 4. Indemnification, Defense and Hold Harmless ............................................... 9
Section 5 - Documentation.............................................................................................. 9
Section 5 - Bulletin Boards and Departmental Mail. ...................................................... 9
Section 6 - Access to Union Representatives. .............................................................. 10
Section 7 - Meeting Places. ........................................................................................... 10
Section 8 - Notification to the Union. ........................................................................... 10
Section 9 - Union Logo ................................................................................................. 11
Section 10 - Public Notice. ........................................................................................... 11
Section 11 - Use of Agency Reports. ............................................................................ 11
Section 12 - Job Postings .............................................................................................. 11
Section 13 - Contracting Out ........................................................................................ 11
ARTICLE IV - STEWARDS............................................................................................ 11
Section 1 - Union Officers. ........................................................................................... 11
Section 2 - Number of Stewards. .................................................................................. 12
Section 3 - Release Time. ............................................................................................. 12
Section 4 - Advance Notification Before Leaving Work Location. ............................. 12
Section 5 – Release Time .............................................................................................. 12
Section 6 - Designated Union Space. ............................................................................ 13
Section 7 - Union Officers and Release Time. ............................................................. 13
ARTICLE V - REDUCTION IN FORCE ........................................................................ 13
Section 1 - Attrition. ..................................................................................................... 13
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Section 2 - Advance Notice. ......................................................................................... 13
Section 3 - Order of Layoff. .......................................................................................... 13
Section 4 - Seniority/Bumping Rights. ......................................................................... 14
Section 5 - Re-Employment List................................................................................... 14
Section 6 - Sick Leave Balances. .................................................................................. 14
Section 7 - Hourly Employees Performing Duties. ...................................................... 15
ARTICLE VI - PERSONNEL ACTIONS ........................................................................ 15
Section 1 - Probation. .................................................................................................... 15
Section 2 - Personnel Evaluations................................................................................. 15
Section 3 - Personnel Files. ........................................................................................... 16
Section 4 - Release of Information. .............................................................................. 16
Section 5 - Promotional Opportunities. ........................................................................ 16
g) Violations........................................................................................................ 18
Section 6 - Rights. ......................................................................................................... 18
Section 7 - Apprentice Positions. .................................................................................. 18
Section 8 - Rotation. ..................................................................................................... 19
ARTICLE VII - PAY RATES AND PRACTICES .......................................................... 19
Section 1 - Salary. ......................................................................................................... 19
Section 2 - Step Increases. ............................................................................................ 19
Section 3 - Working Out of Classification .................................................................... 19
Section 4 - Classification Changes. .............................................................................. 20
Section 5 - Reclassification Requests. .......................................................................... 20
Section 6 - Assignment to a Lead Position. .................................................................. 21
Section 7 - Total Compensation and Survey Database. ................................................ 21
Section 8 - Direct Deposit ............................................................................................. 22
ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY ......................... 23
Section 1 - Work Week and Work Day. ....................................................................... 23
Section 2 - Overtime Work. .......................................................................................... 23
Section 3 - Work Shifts. ................................................................................................ 25
Section 4 - City-Paid Meals. ......................................................................................... 25
Section 5 - Break Periods .............................................................................................. 27
Section 6 - Clean-Up Time ........................................................................................... 27
Section 7 - Standby Pay, Call-Out Pay ......................................................................... 27
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Section 8 - Night Shift Premium. .................................................................................. 28
Section 9 - Bilingual Premium ...................................................................................... 28
Section 10 - Communications Training Officer (CTO) Compensation ........................ 28
ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES ........................................... 29
Section 1 - Uniforms. .................................................................................................... 29
Section 2 - Tool Allowance. ......................................................................................... 32
Section 3 - Shoe Allowance. ......................................................................................... 32
Section 4 – Certifications. ............................................................................................. 33
Section 5 - Weather Protection. .................................................................................... 37
ARTICLE X - HOLIDAYS .............................................................................................. 37
Section 1 - Fixed Holidays. ........................................................................................... 37
Section 2 - Pay for Fixed Holidays. .............................................................................. 38
Section 3 - Work on Fixed Holidays............................................................................. 38
Section 4 - Variations in Work Week. .......................................................................... 39
Section 5 - Floating Days Off ....................................................................................... 39
ARTICLE XI - VACATIONS .......................................................................................... 40
Section 1 - Vacation Accruals. ...................................................................................... 40
Section 2 - Holiday Falling During Vacation. .............................................................. 40
Section 3 - Illness During Vacation. ............................................................................. 41
Section 4 - Accrued Vacation Pay for Deceased Employees. ...................................... 41
Section 5 - Effect of Extended Military Leave. ............................................................ 41
Section 6 - Vacation at Termination. ............................................................................ 41
Section 7 - Vacation Cash Out. ..................................................................................... 41
ARTICLE XII - LEAVE PROVISIONS .......................................................................... 42
Section 1 - Sick Leave. ................................................................................................. 42
Section 2 - Bereavement Leave. ................................................................................... 43
Section 3 - Military Leave. ........................................................................................... 43
Section 4 - Leave Without Pay. .................................................................................... 44
Section 5 - Jury Duty and Subpoenas ........................................................................... 44
Section 6 - Time Off to Vote. ....................................................................................... 45
Section 7 - Disapproval of Leave of Absence. ............................................................. 45
Section 8 - Personal Business Leave Chargeable to Sick Leave. ................................. 45
Section 9 - Return to Assignment. ................................................................................ 45
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ARTICLE XIII - WORKERS' COMPENSATION INSURANCE .................................. 45
Section 1 - Industrial Temporary Disability. ................................................................ 45
Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. 46
ARTICLE XIV - BENEFIT PROGRAMS ....................................................................... 46
Section 1 - Health Plan. ................................................................................................ 46
Section 2 - Dental Plan. ................................................................................................ 49
Section 3 - Vision Care ................................................................................................. 49
Section 4 - Life Insurance ............................................................................................. 50
Section 5 – Long Term Disability Insurance ................................................................ 50
Section 6 - Effective Date of Coverage for New Employees ....................................... 50
Section 7 - Dual Coverage ............................................................................................ 50
Section 8 - Deferred Compensation .............................................................................. 50
Section 9 – Dependent Care Assistance Program and Medical Flexible Spending
Accounts. ...................................................................................................................... 50
Section 10 - Training Programs. .................................................................................... 51
ARTICLE XV – RETIREMENT...................................................................................... 51
Section 1 - PERS Continuation. .................................................................................... 51
Section 2 - Employee Share. ......................................................................................... 52
Section 3. Employer Share. ........................................................................................... 52
ARTICLE XVI - COMMUTE INCENTIVES AND PARKING ..................................... 53
Section 1 - Commute Incentive. .................................................................................... 53
Section 2 – Parking Lot Security – Municipal Service Center. .................................... 54
Section 3 – Bicycle Lockers and Motorcycle Parking. ................................................. 54
ARTICLE XVII - PHYSICAL EXAMINATIONS .......................................................... 54
ARTICLE XVIII – SAFETY ............................................................................................ 54
Section 1 - Health and Safety Provisions ...................................................................... 54
Section 2 - Union Cooperation. .................................................................................... 54
Section 3 - Safety Committees and Disputes. ............................................................... 55
ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE ....................................... 55
Section 1 - General Provisions. ..................................................................................... 55
Section 2 – Definitions.................................................................................................. 56
Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action
Procedure. ..................................................................................................................... 56
Section 4 - Grievance and Appeal Procedure. .............................................................. 58
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ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY
ACTION ........................................................................................................................... 60
Section 1 - Preliminary Notice of Discipline. ............................................................... 60
Section 2 - Skelly Meeting. ........................................................................................... 61
Section 3 – Appeals. ..................................................................................................... 61
ARTICLE XXI - NO ABROGATION OF RIGHTS ....................................................... 61
ARTICLE XXII - OUTSIDE EMPLOYMENT ............................................................... 61
ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS ......................................... 61
ARTICLE XXIV - PROVISIONS OF THE LAW ........................................................... 62
Section 1 - Conformity and Separability of Provisions. ............................................... 62
Section 2 - Merit Rules and Regulations. ..................................................................... 62
Section 3 - Resolution. .................................................................................................. 62
ARTICLE XXV - TUITION REIMBURSEMENT ......................................................... 62
ARTICLE XXVI - COST REDUCTION PROGRAMS .................................................. 63
ARTICLE XXVII – TERM .............................................................................................. 64
APPENDIX A ................................................................................................................... 66
APPENDIX B. APPRENTICESHIPS .............................................................................. 68
APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK
VARIATION .................................................................................................................... 71
APPENDIX D. IN-LIEU PREMIUMS ............................................................................ 76
APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS .............................. 77
APPENDIX F. RECOVERY OF CITY TRAINING COSTS .......................................... 78
APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT ............ 79
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202319 - 202421 MEMORANDUM OF AGREEMENT
City of Palo Alto and SEIU Local 521
PREAMBLE
This Memorandum of Agreement (hereinafter “MOA” is entered into by the City of Palo
Alto (hereinafter referred to as the “City”) and Local 521 Service Employees’ International
Union, CTW (hereinafter referred to as the “Union”). For the purposes of this MOA
“employee” shall mean an employee assigned to a classification within the SEIU General
Employee bargaining unit. This MOA is pursuant and subject to Sections 3500-3510 of
the Government Code of the State of California and Chapter 12 of the City of Palo Alto
Merit Rules and Regulations.
ARTICLE I – RECOGNITION
Section 1 - Recognition. Pursuant to Sections 3500 - 3510 of the Government Code of the
State of California and Chapter 12 of the City of Palo Alto Merit System Rules and
Regulations, the City recognizes the Union as the exclusive representative of a
representation unit consisting of all regular full and part-time employees in the
classifications listed in Appendix A attached hereto. This unit, shall for purposes of
identification, be titled the SEIU General Employees bargaining unit (hereinafter “General
Unit”).
Section 2 - Protection of Unit. No supervisor will perform the work of an employee in the
General Unit provided that there is an employee available who regularly performs such
work. This does not preclude a supervisor from performing work of a minor nature or
during bona fide emergencies or on a standby status when willing and qualified unit
employees do not live within a reasonable response time of their work location.
Supervisory personnel shall be called out to perform unscheduled work only when SEIU
General unit employees are unavailable to perform such work or in cases of bona fide
emergencies as defined in Article VIII, Section 2. In cases of bona fide emergencies, SEIU
General Unit employees shall be called out to complete the necessary work after the
immediate emergency situation has been reasonably contained.
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ARTICLE II - NO DISCRIMINATION
Section 1 – Discrimination. The City of Palo Alto is committed to providing a work
environment free from all forms of harassment and discrimination and agrees not to
harass or discriminate against employees or applicants based on such characteristics such
as race, ethnicity, color, religion, political affiliation, veteran status, military status,
national origin, ancestry, disability, medical condition, marital status, age, pregnancy, sex,
sexual orientation, gender identity and gender expression, or the perception that any
person has such characteristic, and any other characteristic protected by federal or state
law or City Ordinance. The City of Palo Alto will not harass or discriminate against
employees from exercising their rights to organize in accordance with the Meyers-Milias
Brown Act.
Complaints of harassment and or discrimination should may be reported immediately to
any of the following individuals
• Immediate supervisor
• Any supervisor or manager within or outside of the department
• Department Head
• Human Resources Director
the Department of Human Resources and Complaints will be investigated in accordance
with the City’s Policy and Procedures.
Section 2 - Right to Join the Union. The City and the Union agree to protect the rights of
all employees to exercise their free choice to join the Union and to abide by the express
provisions of applicable State and local laws.
ARTICLE III – UNION MEMBERSHIP
Section 1 - Notice.
a) When a person is hired in any of the covered job classifications, the City shall notify
that person that the Union is the recognized bargaining representative for the employee
and give the employee a current copy of the Memorandum of Agreement.
b) When a group employee orientation is held for new employees of the bargaining unit,
a union representative may shall be permitted to make a presentation to such bargaining
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unit employees during the employee orientation for the purpose of explaining matters of
representation. The presentation shall not exceed 30 minutes. Management will not be
present during the Union presentation. The City will provide release time to a steward or
Union Officer for purposes of making the presentation. In addition, a non-City employee
Union representative will also be given access to attend for the purposes of making the
presentation.
c) The City will normally provide the Union with ten (10) days’ notice in advance of a group
orientation. Shorter notice may be provided only in a specific instance where there is an
urgent need critical to the employer’s operations that was not reasonably foreseeable.
The date, time, and place of the orientation shall not be disclosed to any third party except
the exclusive representative or a vendor that is contracted to provide a service for
purposes of the orientation.
d) When no group employee orientation is held, if an employee is unable to attend the
group orientation, or if the Union is unable to make a presentation because the City
provides less than ten (10) days’ notice, the City will offer the Union a monthly
opportunity to make a thirty (30) minute presentation to new employees. This may be
scheduled before or after the Steward Council meeting. For the months of January,
February, and March 2023, the Union may hold a monthly presentation (not to exceed 30
minutes) for employees hired between March 1, 2020 and September 30, 2022.
e) This section is intended to satisfy the requirements of Government Code Section 3556.
Section 2 – Payroll Deductions
The City shall deduct Union membership dues and pay other mutually agreed upon
deductions (including Committee on Political Education (COPE)) from the bi-weekly pay
of member employees. The deductions in this Section shall not apply during any period
where an employee is in an unpaid status and/or transfers or in any other manner leaves
the representation unit.
The Union will be the custodian of records for individual employee membership and dues
deduction forms. The Union will maintain all authorizations for dues deductions signed
by the individual from whose salary or wages the deduction or reduction is to be made.
The City will direct employee requests to cancel or change deductions to the Union.
Deductions may be revoked only pursuant to the terms of the employee’s written
authorization. The City shall remit the deducted dues to the Union as soon as possible
after deduction.
Section 3. Certification of Union Membership.
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The Union agrees to provide the City on a monthly basis, a certified list of members and
a statement that the Union has and will maintain written authorizations signed by the
individuals from whose wages the Union dues deductions are to be made, and a
statement that the Union shall indemnify the City for any claims made by the employee
for deductions made in reliance on that certification, in accordance with Government
Code Section 1157.12(a).
Section 4. Indemnification, Defense and Hold Harmless
Union agrees to indemnify and hold harmless the City and all officials, employees, and
agents acting on its behalf, from any and all claims, actions, damages, costs, or expenses
including all attorney’s fees and costs of defense in actions against the City, its officials,
employees or agents as a result of actions taken or not taken by the City pursuant to this
Article.
Section 5 - Documentation.
The City shall supply the Union with:
a) a monthly electronic file on or before the 15th of the month with the names,
addresses, classifications, hourly base pay, pay periodmonth number, work
locations, work phone, home phone number, personal cellphone number,
employee number, and personal email, employee ID number, and Committee on
Political Education (COPE) listed separately and last four digits of the Social
Security number of all bargaining unit employees on file with the City except those
who file written notice with the Human Resources Department objecting to
release of addresses, home telephone number, personal cellphone number, or
personal email address, in which case information will be transmitted without
these objected items; and
b) a list of bargaining unit new hires, terminations and retirements which occurred
during the previous month.
The Union shall supply the City, and as applicable, the employees, with documentation
required by Government Code Section 3502.5 (f).
Section 5 - Bulletin Boards and Departmental Mail.
The Union shall have access to inter-office mail, existing bulletin boards in unit employee
work areas for the purpose of posting, transmitting, or distributing notice or
announcements including notices of social events, recreational events, Union
membership meetings, results of elections and reports of minutes of Union meetings.
Any other material must have prior approval of the Human Resources Office. Action on
approval will be taken within 24 hours of submission. The Union may send email
messages only for the purposes set forth above. The IT Department will maintain the
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SEIU list and keep it current. The Union access to email is based on the following
conditions: 1) emails to the SEIU list will be copied to the Human Resource Director, or
designee at distribution; 2) emails to the SEIU list will only be sent by the SEIU Chapter
Chair, Vice Chair, Chief Steward (s) or Secretary, 3) a maximum of 52 emails may be sent
per year and a maximum of 12 emails may be sent by the SEIU Chapter Secretary.
Section 6 - Access to Union Representatives. Representatives of the Union are authorized
access to City work locations for the purpose of conducting business within the scope of
representation, provided that no disruption of work is involved. and the business
transacted is other than recruiting of members or collecting of dues, and Tthe
representative must notify the Human Resources Department prior to entering the work
location.
Section 7 - Meeting Places. The Union shall have the right to reserve City meeting and
conference rooms for use during lunch periods or other non-working hours. Such meeting
places will be made available in conformity with City's regulations and subject to the
limitations of prior commitment.
Section 8 - Notification to the Union.
a) General. Pursuant to Government Section 3500, et seq. (Meyers-Milias-Brown Act
as amended), the Union shall be informed in advance in writing by Management
before any proposed changes not covered by this Memorandum of Agreement are
made in benefits, working conditions, or other terms and conditions of
employment which require meet and confer or meet and consult process. This
paragraph shall not be subject to the grievance procedure of this Memorandum
of Agreement so long as the Public Employment Relations Board retains
jurisdiction over the obligation to meet and confer in good faith.
b) Change in City’s Financial Situation. Should the City’s financial situation
deteriorate and the possibility of layoffs result, the City Manager will give prior
notice to and consult with the Union prior to recommending any layoffs to the City
Council.
c) Vacancies and Temporary Personnel. The City agrees to notify SEIU Local 521 in
writing when any irregular, temporary, hourly, provisional, special or extra help
employee who consistently performs work typical of the SEIU Local 521 bargaining
unit exceeds 1,000 hours of work within a 18-month period. The City agrees to
notify SEIU Local 521 in writing when any position covered by this agreement is
left vacant for more than 60 days. In coordination with the SEIU 521 Hourly
representation Unit, the City and SEIU 521 may meet regarding the conversion of
any long term and on-going hourly positions which may be converted to full time
positions through the budget process.
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Section 9 - Union Logo. All materials and documents produced on Itek and metal plates,
by the City print and reproduction shop, shall carry the Union label on the inside of covers
or title pages in accordance with customary printing trades practices.
Section 10 - Public Notice. The City shall make available to the Union, in a timely manner,
copies of all City Council meeting agendas, minutes and schedule of meetings. These
materials will be available online via the City’s website.
Section 11 - Use of Agency Reports. Upon request, the City shall provide to the Union
reports by department on the use of agency temporaries filling representation unit vacant
positions, or doing work similar to that of representation unit classifications.
Section 12 - Job Postings. The City shall incorporate the requirements of this Article when
publicizing job announcements for classifications covered by this Memorandum of
Agreement.
Section 13 - Contracting Out. The City through the labor management process will keep
the Union advised of the status of the budget process, including any formal budget
proposal involving the contracting out of SEIU bargaining unit work traditionally
performed by bargaining unit members at least thirty (30) days prior to the release of the
City Manager’s proposed budget. The City will notify the Union in writing at least ninety
(90) days prior to contracting work which has been traditionally performed by bargaining
unit members. Within the ninety (90) day period of contracting out, both parties may
offer alternatives to contracting out and meet and confer on the impact of such
contracting out of a bargaining unit employee work. The City will notify the Union in
writing when contracting out work which has been traditionally performed by bargaining
unit workers, where such contracting out is expected to replace a laid off bargaining unit
position that has been eliminated within ninety (90) days prior to the date of the planned
contract work. When feasible, the City will provide such notice prior to the beginning
date of the planned contract work. The City will meet with the Union upon request to
discuss alternatives. This provision does not apply to the filling of temporary vacancies of
twelve (12) months or less duration. The City will provide the Union with a biannual list
by department of all contract workers or vendors who are contracted by the City who
perform work for the City. The City will make a reasonable effort to identify the names
of the vendors on the list and the nature of the work provided by each vendor.
ARTICLE IV -– STEWARDS AND OFFICERS
Section 1 - Union Officers. The Union agrees to notify the Director of Human Resources
of those individuals designated as Union officers and stewards who receive and
investigate grievances and represent employees before Management. Alternates may be
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designated to perform steward functions during the absences or unavailability of the
steward.
Section 2 - Number of Stewards. The number of stewards designated by the Union at a
given time shall not exceed thirty-five (35).
Section 3 - Release Time. It is agreed that, as long as there is prior notice as specified
below to the Supervisor and the release of stewards will not unreasonably disrupt City
operations, stewards shall be allowed reasonable release time away from their work
duties, without loss of pay, to represent a unit employee or employees on grievances or
matters within the scope of representation, including:
a) A meeting of the steward and an employee, or employees of that unit related to a
grievance.
b) A meeting with Management.
c) Investigation and preparation of grievances.
Grievances may be transmitted on City time. All steward release time shall be reported
on time cards.
Section 4 - Advance Notification Before Leaving Work Location. The Union agrees that
the steward shall give no less than one (1) full business day advance notification to his/her
supervisor before leaving the work location, except in those cases involving an
unforeseeable circumstance that requires immediate union representation where
advance notice cannot be given or when the relevant supervisor otherwise allows less
notice. A supervisor may deny such a request for release from duty if the steward is
needed to ensure real time delivery of services that the steward provides for the public
or internal City customers and another employee who normally provides such services is
not available on a straight time basis to relieve the steward, or in a bona fide emergency.
If such denial occurs, the union may request the release of another of its designated
stewards to perform the representation duties involved. Such request shall be processed
in accordance with the terms set forth in this section except that the requirement for a
full business day advance notice to the replacement representative’s supervisor shall not
apply. Nothing herein shall preclude the City from rescheduling a meeting it has
scheduled, to facilitate the attendance of a steward who has requested release if, in the
City’s judgment, such change can be undertaken without undermining the objectives of
the meeting.
Section 5 – Release Time. Four (4) Union officers, who are City employees, shall be
allowed a reasonable amount of release time off for purposes of meeting and conferring
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or meeting and consulting on matters within the scope of representation. All such time
will be reported on timecards.
Section 6 - Designated Union Space. Union stewards may utilize space in assigned desks
for storage of Union materials. In the event stewards are not assigned desks the City will
provide locker or other mutually agreeable space for storage of Union materials.
Section 7 - Union Officers and Release Time. Four (4) union officers, who are City
employees shall be allowed a reasonable amount of release time off for monthly
Labor/Management Meetings. When the Union believes additional subject matter expert
or experts would be helpful to the discussion, the Union shall notify the Human Resources
Director, or designee and request release time for those individuals. Additional release
time will be by mutual agreement.
Officers released under this section may be permitted reasonable release time for caucus,
the amount of which will be determined by mutual agreement.
ARTICLE V - REDUCTION IN FORCE
Section 1 - Attrition. In the event of reductions in force, they shall be accomplished
wherever possible through attrition.
Section 2 - Advance Notice. When the City determines that layoffs are imminent resulting
from reduction in force within the representation unit, the City will give the Union such
advance notice as is reasonable under the circumstances. The notice will indicate the
departments and divisions which will be affected and the circumstances requiring the
layoffs. The City will furnish the Union with a current representation unit seniority list
with notice of layoff.
Section 3 - Order of Layoff. If the work force is reduced within a department, division, or
office for reasons of change in duties or organization, abolition of position, shortage of
work or funds, or completion of work, employees with the shortest length of service will
be laid off first so long as employees retained are fully qualified, trained, and capable of
performing remaining work. Length of service for the purpose of this article will be based
on current service hire date of record in a regular classification with no adjustment for
leaves of absence. Length of service ties will be determined by lot in a method agreeable
to both parties. Employees laid off due to the above reasons will be given written notice
at least thirty days prior to the reduction in force. A copy of such notice will be given to
the Union. Such employees shall be offered priority employment rights to regular
positions which are requisitioned and for which the employees are qualified for a period
beginning with notification and ending sixty (60) days following the reduction in force.
Employees transferred or reclassified under this section will be assigned to the step in the
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new classification salary range closest to the employee's salary range at the time of
reclassification. Employees laid off pursuant to this section shall receive the balance of
all regular City compensation owed and severance pay equal to one month’s salary at the
employee’s final rate of pay at termination. This does not include any amounts payable
under Article V, Section 6, or PERS contribution refunds, if any.
Section 4 - Seniority/Bumping Rights. Employees identified for layoff who have seniority
(bumping) rights to their current or previously held classifications within the
representation unit must declare their intention to exercise these rights in writing and
submit to the Human Resources Department within seven (7) working days after written
notification of layoff, otherwise bumping rights will automatically terminate. Bumping
may occur within the representation unit, only to the least senior incumbent of the
current or a previously held classification. To bump, the employee must be fully qualified,
trained, and perform all work in the position. For purposes of this section of the
Agreement, the term "working days" shall mean Mondays through Fridays, exclusive of
holidays.
When an employee returns to work from a military protected leave, they will be
reinstated as required by law. Should this result in bumping a current employee; the
displaced employee will have bumping rights as set forth in this section.
Section 5 - Re-Employment List. The names of employees laid off or who through bumping
changed classification in accordance with the provisions of this Article shall be entered
upon a re-employment list in seniority order. The employee with the greatest seniority
on the re-employment list, including those who exercised their bumping rights, shall be
offered reinstatement first. Such notice of reinstatement shall be in writing with a copy
to the employee, Union and Chapter Chair. If a laid off employee waives reinstatement or
fails to respond within ten (10) working days of receipt of the notice, the employee shall
be removed from the reemployment list. The person with the highest seniority including
those who exercised their bumping rights on a re-employment list for a particular
classification when a vacancy exists in that classification shall be offered the appointment.
Names shall be carried on a re-employment list for a period of two (2) years from the date
of separation from City services or change of classification through bumping. Upon re-
employment within the two-year period, the employee's hire date of record at the time
of layoff will be reinstated. When qualifications are in question, the City and SEIU will
meet and confer.
Section 6 - Sick Leave Balances. Employees laid off pursuant to Section 2 who are
reinstated to a regular position within sixty (60) days shall retain the sick leave balance
they had at the time of layoff, unless they have received a sick leave payoff in accordance
with Article XII.
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Section 7 - Hourly Employees Performing Duties. No representation unit employee will
be laid off or remain on a re-employment list when hourly employees are performing
substantially all the duties of the classification of the employee receiving a layoff notice
or on a re-employment list. This provision shall not be applied to hourly positions which
have been traditionally used for seasonal and part-time work.
ARTICLE VI - PERSONNEL ACTIONS
Section 1 - Probation. Each new regular or part-time employee, except employees in
police dispatch positions, shall serve a probationary period of twelve (12) months,
commencing with the first day of his/her employment. Each new regular or part-time
employee in dispatch positions will serve an 18-month probationary period commencing
with the first day of his/her employment. The probationary period shall be regarded as a
part of the testing process and shall be utilized for closely observing the employee's work,
for securing the effective adjustment of a new employee to his/her position, and for
rejecting any probationary employee whose performance does not meet the acceptable
standards of work. At least one written performance appraisal will be given to each
probationary employee on or before expiration of the probationary period. This appraisal
will be given approximately at the end of the sixth month and another at the end of the
twelfth month for employees in police dispatch positions. In the event of termination
prior to successful completion of the probationary period, such terminated employee
shall be given written notice of his/her termination with the reasons for the termination
stated therein. The Human Resources Department shall, upon request, afford an
interview in a timely fashion to the terminated employee for discussion of the reasons for
termination. The employee may, upon request, be accompanied by a Union
representative. The interview shall not be deemed a hearing nor shall it obligate the City
to reconsider or alter the termination action. The parties agree that probationary
employees shall have all rights under this Memorandum of Agreement, including full and
complete access to the grievance procedure, save and except for instances of suspension,
demotion or termination.
Section 2 - Personnel Evaluations. Personnel evaluations will be given to employees
annually as scheduled by Management. Personnel evaluations are not appealable
through the grievance procedure but, in the event of disagreement over content, the
employee may request a review of the evaluation with the next higher level of
Management, in consultation with the Human Resources Department. For purposes of
this review, the employee may be represented by the Union. Decisions regarding
evaluation appeal shall be made in writing within ten (10) working days following the
review meeting.
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Section 3 - Personnel Files. Records of all disciplinary actions shall be kept in the central
personnel file. Employees shall be entitled to sign and date all action forms in their
personnel files. Employees are entitled to review their personnel files upon written
request or to authorize, in writing, review by their Union representatives. An employee
or the Union shall be allowed, upon reasonable request, copies of materials in an
employee's personnel file relating to a grievance. Records of disciplinary actions,
including references in a performance evaluation, shall be removed from a personnel file
upon written request by the employee after a period of four years, or sooner as mutually
agreed by Management and the employee so long as there have been no duplicated
policy violations since the discipline (based on the Notice of Disciplinary Action) and the
disciplinary action did not involve a violation of the City’s anti-harassment policy, or state
and federal harassment and discrimination laws.
Section 4 - Release of Information. The City will only release information to creditors or
other persons upon prior identification of the inquirer and acceptable reasons for the
inquiry. Information then given from personnel files is limited to verification of
employment, length of employment and verification and disclosure of salary range
information. Release of more specific information may be authorized by the employee.
Section 5 - Promotional Opportunities.
With the exception of Flexibly Staffed positions and Apprentice positions as described in
Appendix B, the promotional procedures in this Section will control. A Flexibly Staffed
position is a position where transition from one classification to another occurs when an
employee has met the requirements for promotion to the higher classification and does
not require a promotional process. A position is considered Flexibly Staffed when that
position is budgeted at a higher classification than the position is currently filled. For
example, if the City recruits for a Planner but ends up underfilling the position with an
Associate Planner, the incumbent may be reclassified to a Planner once they qualify for
that classification.
Flexibly Staffed positions will be identified by mutual agreement using the following
process: (1) Prior to posting the recruitment, the City will notify the Union that it intends
to identify a position as Flexibly Staffed; (2) if the Union requests to meet over the
designation, the recruitment will proceed and the Parties will discuss flexible staffing at
Labor Management; (3) if the Union does not request to meet over the designation or if
the Parties reach agreement to designate the position as Flexibly Staffed, the City will
designate the position as Flexibly Staffed.
a) Posting. Promotional opportunities for classifications within the representation unit
will be posted for at least ten (10) working days (Monday through Friday)fourteen (14)
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calendar days prior to selection. Outside recruitment may be used for promotional
openings and may begin at the time of posting, or any time thereafter. If, however,
there are three or more qualified internal candidates within the department where
the vacancy occurs, and those candidates successfully complete the selection process,
outside candidates will not be considered.
b) Internal Candidate Eligibility. All non-probationary representation unit employees
are eligible to apply for posted promotional opportunities, except that Management
may waive this requirement for all probationary employees within the department
where the promotional opportunity occurs.
c) Selection. The selection procedure for each promotional opening will be determined
and administered by the Human Resources Department in consultation with the
requisitioning department. Selection procedure and job description information will
be available at the Human Resources Office at the time of posting. Efforts will be made
to standardize tests and procedures where standardization is feasible and
appropriate. Any tests used shall be reasonably predictive of success in the
classification, and tests not be biased with respect to race, sex, sexual orientation,
religion, creed, political affiliation, color, national origin, ancestry, or age. Selection
procedures may include any or all of the following phases:
1) Application. Both inside and outside candidates must complete a City of Palo Alto
application form specified by the Human Resources Department. Applications
must be submitted to the Human Resources Office.
2) Screening. Applications will be screened by the Human Resources Department
and, in some circumstances, a manager from the Department seeking to fill a
position to ascertain whether candidates meet minimum requirements as
outlined in the job description. Internal candidates deemed not to meet minimum
requirements may submit additional qualification information writing within three
working days of notification of requirement deficiency.
3) Performance Testing. Performance tests, such as typing, machinery or vehicle
operation, skills demonstration, physical agility, etc., will be qualifying. Pass-fail
points will be announced in advance for qualifying tests. If requested in writing
prior to the test, performance test may be witnessed by Union steward.
4) Written Tests. Written achievement or aptitude tests will be qualifying. Pass-fail
points will be announced in advance for qualifying tests.
5) Interviews, Appraisals. Interviews may be conducted individually or by interview
boards and will be qualifying. Interview boards shall be composed of qualified and
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unbiased people. Where interview boards are used, Management will include at
least one bargaining unit employee on each board. If individual interview or an
interview board is used, a majority of the individuals or board members must
recommend a candidate in order for the candidate to qualify for appointment.
Performance appraisals written by candidates' supervisors may be used as
indicated in the selection procedure.
d) Recommended Candidates. Candidates who successfully complete all phases of the
selection procedure will be recommended to the appointing authority.
e) Seniority. Seniority, for purposes of this Article, will be based on current service hire
date of record in a regular classification with no adjustment for leaves of absence.
Seniority ties will be determined in favor of the employee with the lowest employee
number last four digits. Exceptions to this subsection may be established by mutual
agreement on a departmental or divisional basis. Such exceptions are listed in
Appendix E.
f) Appointment. The appointing authority will make appointments from among those
recommended candidates who are most qualified as determined by objective review
of selection procedure results and background materials. Where appointments are
made from only internal candidates who are equally qualified as determined by
objective review of selection procedure results and past performance, seniority will
be the determining factor in promotional appointments.
g) Violations. Any violation of this Article may be appealed to the Human Resources
Director in Step III of the grievance procedure.
h) Eligibility List (Pilot program). Human Resources may maintain an eligibility list of
those applicants who interviewed and were ranked within the top three (3). Candidates
on an eligibility list will be considered for any vacant position in the classification for which
the list exists, without the need to submit a new application under section (c)(1) of this
provision. This pilot program will sunset with the expiration of the MOA, but not later
than December 31, 2024, unless extended by written agreement of the parties.
Section 6 - Rights. Unit employees applying for a vacant equal or lower paying position
shall have the same rights as unit employees applying for a promotion.
Section 7 - Apprentice Positions. (a) The City shall establish apprentice positions wherever
feasible. Length of apprenticeship, type of training, and pay levels shall be by mutual
agreement. Where possible, apprentice positions will underfill regular positions so that
incumbents may automatically progress to the classification for which they are training
upon successful completion of apprenticeship. The City will meet and confer with the
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Union before adding any new apprenticeship programs during the term of this
agreement. All apprenticeship programs are listed in Appendix B.
Section 8 - Rotation. In assigning employees to regular or special shifts, transfer, standby,
overtime, or vacation selection, ability to perform the work, length of service or equitable
rotation shall determine the assignments. In accordance with this provision, more
definitive rules may be arranged by mutual agreement of the Union and individual City
departments.
ARTICLE VII - PAY RATES AND PRACTICES
Section 1 - Salary.
The base salary rates and ranges for job classifications covered by this bargaining unit
shall be increased as set forth in Appendix A to reflect salary increases for all positions in
the unit and market adjustments to positions identified in the total compensation survey
as under-market based on the survey results for base, cash, insurance and the normal
cost of retiree medical (when such information is required by and verified through the
CAFR), with total rates and ranges as set forth in Appendix A (Salary Schedule) attached
hereto.
Section 2 - Step Increases.
Merit advancements from the first salary step to the second salary step shall be granted
upon successful completion of probation and between second and subsequent steps at
one-year intervals, if the affected employee has demonstrated continued improvement
and efficient and effective service. For the purpose of determining step time
requirements, time will commence on the first day of the month coinciding with or
following entrance onto a salary step. Step increases shall be effective on the first day of
the payroll period in which the time requirements have been met.
Section 3 - Working Out of Classification. The term "working out of classification" is
defined as a Management authorized full-time assignment to a budgeted/approved
position on a temporary basis wherein all significant duties are performed by an individual
holding a classification within a lower compensation range. Out-of-classification
provisions do not apply to work assignments performed in connection with specific
predetermined apprenticeship or training programs, or declared conditions of public peril
and/or disaster. Pay for working out of classification shall be as follows:
a) Employees appointed to an "out of classification" will receive acting pay beginning the
first day of the assignment and shall be paid for all hours worked in the higher
classification provided employee works a minimum of four (4) hours.
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b) Where out-of-class appointments last for more than 90 days, and whenever feasible,
an out-of-class appointment will be rotated among qualified interested employees in
the work group.
c) Employees will receive 5% premium pay for all assigned out of class pay for work
within SEIU Classifications with the exception of lead assignments where the out of
class pay will result in a 7% premium pay.
d) Employee appointed to “out of class” assignments that are in the Management and
Professional Compensation Plan or in Utilities Management and Professional
Association for at least one workweek will receive up to a 10% premium pay.
Section 4 - Classification Changes.
a) During the course of this agreement, the Union and affected employees shall be
notified in advance of any contemplated changes in classification description, wage
range or steps. Such changes shall be subject to the meet and confer process. Such
meet and confer process shall be concluded within no more than thirty (30) days
following delivery of the City’s notice to the Union. If the Union and the City cannot
reach agreement on the appropriate pay level from a job so reclassified, the Union
may, within ten (10) City business days following the conclusion of the meet and
confer process described above by delivery of written notice to the Human Resources
Director, refer the dispute over the proposed wage range or steps to arbitration at
Step IV of the Grievance Procedure set forth at Article XIX of this Memorandum of
Agreement.
Section 5 - Reclassification Requests.
a) An employee or his/her representativeEffective Fiscal Year 2023-24, the Union
may request in writing a re-evaluation of his/her jobup to three (3) positions based
on significant permanent changes in job content or significant discrepancies
between job content and classification description. The request must be in
writing, contain justification and may be made only on an annual basis during the
period of September 10 through October 10January 10 through February 10. A
statement by management that a job reevaluation request will be submitted with
the departmental budget does not relieve an employeethe Union from the
responsibility of submitting a his/her own request during this period. The Human
Resources Director or his or her designee will initially respond to such requests
within ninety (90) calendar days by notice to the employee and the union;
however, this timeline may be extended if necessary. Such response shall include
any reclassification to a different classification or changes in description that the
City believes are warranted and any related changes in applicable pay range or
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steps. If meetings are held, the employee may request representation. If a
reclassification is approved and results in an increase in salary, it shall be
retroactive to the date the Employee or Union filed the request for the
reclassification.
b) If the employee or Union disagrees with the accuracy of the description of duties
resulting from the study conducted pursuant to subsection (a) of this Section or
with the wage range or steps assigned by the City as a result of the study, the
employee or Union may, within ten (10) City business days of delivery of notice of
such determination, appeal such decision under step IV of Article XIX, Grievance
Procedure.
c) In a dispute under Section 4(a) or section 5(b) above, the arbitrator shall render
his or her decision on the appropriate wage range or steps within twenty-one (21)
days after the initial hearing date. The same time line will be observed for disputes
over the accuracy of the revised classification description. The parties will notify
the arbitrator of this deadline at the time of the arbitrator’s selection. In reaching
a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator
shall base his or her award on the factors traditionally taken into account in the
establishment of compensation. When deciding a dispute over the accuracy of
the revised classification description under section 5(b) above, the arbitrator shall
identify the modifications of the pre-existing classification necessary to accurately
reflect the permanent changes, if any, that have been implemented. Upon receipt
of the arbitrator’s award, the City shall implement the revised classification and
wage range or steps as provided in the award except as provided under subsection
5(c) of this section below. Notwithstanding an arbitrator’s award pursuant to any
appeal process, the City retains the right to forego implementing the changes and
the proposed changes shall revert to the status quo as it existed before those
changes in duties occurred or were proposed.
d) An employee may submit a request for reclassification for the same classification
no more than once every twenty-four (24) months.
Section 6 - Assignment to a Lead Position. All vacancies in lead positions shall be filled in
accordance with Article VI, Section 5. The pay range for the lead position shall be seven
percent above the pay step of the highest paid employee on the crew. Departmental
exceptions for filling lead positions on a rotational basis for training and development
purposes may be arranged by mutual agreement of the Union and individual City
departments.
Section 7 - Total Compensation and Survey Database.
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a) Management and the Union have agreed to a compensation survey database
structure which identifies specific benchmark classifications for job families,
classifications within the job families of each benchmark classification, survey
agencies and survey classification matches. Survey Cities include:
Alameda Hayward San Mateo
Berkeley Mountain View Santa Clara
Daly City Redwood City S. San Francisco
Fremont San Jose Sunnyvale
If the employer list will not permit the production of a survey report that includes data
from at least four (4) employers that employ employees in a classification comparable to
the classification surveyed by the City, neither party is precluded from bringing forward
information on other employers in the relevant recruitment area that employ workers in
a comparable classification so that data from at least five (5) surveyed employers will be
included in the study, if feasible. Such employer may include any public or private
employer.
The database is intended to provide one source of information concerning how the
compensation paid to employees in bargaining unit job classifications compares to that
paid by other employers. The City will update the survey database and send the Union a
copy no later than August 31, 2024six weeks before expiration of this agreement. This
survey will be considered in connection with special adjustment proposals in successor
agreement negotiations. By agreeing to a survey database, neither Union nor
Management is under obligation to propose or agree to special adjustments.
City will agree to review the market studies (classification matches and comparable
jurisdictions) for the classifications of Park Ranger and Public Safety Dispatcher II and will
meet with SEIU beginning in February 2023. Changes will be by mutual agreement only
and will be implemented for the Fiscal Year following City Council adoption (e.g., adoption
in May 2023 would be implemented for FY 2023-24).
Section 8 - Direct Deposit
The City shall directly deposit all paychecks for Unit employees in a financial institution of
the employee’s choice that accepts direct deposits and does not charge the City a fee(s)
for direct deposit service. In the event that the employee fails to designate a financial
institution for direct deposit of his or her payroll check, the employee shall pick up the
check personally in the City’s Administrative Services Department office on the next
business day following payday at a pickup time designated by Administrative Services.
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ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY
Section 1 - Work Week and Work Day. The standard workday for regular full time
employees shall be one of the following:
• Eight hours to be worked within a maximum of nine hours (five-day work week);
or
• Ten hours to be worked within a maximum of eleven hours (four-day work week);
or
• Nine hours to be worked within a maximum of ten hours for four days with a fifth
day of four hours (four and one-half day work week); or
• Within a fourteen-day period, nine hours to be worked within a maximum of ten
hours for eight days and eight hours to be worked within a maximum of nine hours
for one day, with the work week scheduled to begin so that forty hours are worked
within each seven days of the fourteen-day period (9/80 plan, with forty-hour
work weeks), or any other schedule that results in a 40-hour work week, or fits
within the parameters of an FLSA 2080 Plan. The "9/80 plan" may not be used in
any application that requires entitlement to FLSA overtime for working the regular
work week.
With the exception of the 9/80 plan as described above and flexible scheduling for Police
Dispatchers, the standard work week for regular full time employees shall be forty hours
to be worked within five consecutive days. Additional exceptions to the above are listed
in Appendix C. The Union shall be notified of any further exceptions to this section in
accordance with Article III, Section 8.
The City and the Union agree that the availability of alternate/flexible work schedules is
a valuable benefit in that they promote job satisfaction while also reducing traffic
congestion and air pollution. Employees may utilize flexible arrangements to attend
trainings, seminars, meetings, or for other mutually agreed upon situations. Any such
change to work hours shall be approved by the supervisor in advance and should not
result in overtime.
During the term of this agreement, employees, subject to the conditions of their job
assignment, may propose an alternate work schedule as listed under this Section. Such
proposals must be made to the department head through the immediate supervisor.
Serious consideration will be given to the feasibility and productivity of such proposals,
however Management retains the right to determine scheduling needs.
Section 2 - Overtime Work.
a) Overtime work for all unit employees shall be defined as any time worked beyond
the standard workday or beyond the standard work week.
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All time for which pay is received shall count as hours actually worked for the
computation of regular overtime pay; however, non-productive time will not be
included in computation of any additional FLSA premiums.
b) Emergency overtime is defined as unplanned overtime work arising out of
situations involving real loss of service or property or personal danger. Emergency
overtime does not include:
i. overtime work resulting from personnel replacement for purposes of
maintaining scheduled staffing;
ii. overtime work which is planned in advance;
iii. overtime work resulting from being held over for up to four hours to finish
work performed during the regular shift.
c) Compensation to employees working overtime will be in the form of additional
pay at the rate of one and one-half times the employee's applicable hourly salary
with the exception that an employee may request and, upon approval, be granted
compensatory time off at the rate of one and one-half hours for each hour of
overtime worked, subject to the limitations of applicable state and federal laws.
Two times the employees’ applicable hourly salary will be paid for billable
customer convenience overtime and emergency overtime as defined in
subsection (b) above. Employees may elect at any time to cash out compensatory
time off hours or roll into vacation time, up to applicable maximums. These
elections must be made via the Compensatory Time Cashout Form submitted to
payroll and will take place the following pay period, if received by the form’s due
date. Any compensatory time off hours not taken, allocated, or cashed out will be
automatically cashed out once a year during the first pay period in April.
d) When an employee is required to work 6 or more hours of overtime (either
emergency or pre-arranged) during the 16 hour period immediately preceding the
beginning of the employee’s regular shift on a workday, the employee shall be
entitled to an nine (9)hour rest period before returning to work. If the rest period
overlaps into the second half of the work day, the employee may be given (with
supervisor approval) the remaining time off (up to a maximum of 3 hours) at the
straight time rate of pay. Any portion of the rest period falling within the
employee’s work shift will be considered as hours worked and compensated at
the straight time rate.
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e) If non-emergency overtime is canceled without at least 40 clock hours notice, the
City shall pay the affected employees two (2) hours' pay at time and one-half.
f) Employees working overtime who are too fatigued to continue or return to work,
for safety reasons will be released from duty without compensation.
g) Part-time Employees. Authorized hours worked by an employee in a budgeted,
part-time position in excess of the scheduled hours of work of the position shall
be compensated at the employee’s applicable hourly rate up to the maximum of
non-overtime hours in the work period applicable to the employee. If a part-time
employee works more than 80 hours in a pay period then overtime will be paid in
accordance with the FLSA.
Section 3 - Work Shifts. All employees shall be assigned to work shifts with scheduled
starting and quitting times. Should conditions necessitate a change in starting and
quitting times, the Union will be notified ten (10) working days in advance and permitted
to discuss such changes with the City. This, however, shall not preclude the City's right to
effect schedule changes dictated by operational necessity. This section does not apply to
overtime scheduling.
Section 4 - City-Paid Meals.
In accordance with City policy, the City of Palo Alto bases its meal reimbursement limits
on the U.S. General Services Administration (GSA) per diem rates. Those rates are
adjusted every October. For overnight travel per diem rates, the City reimburses based
on the rates applicable to the destination of travel, as provided by the GSA at
http://www.gsa.gov/portal/category/100120. For non-travel meals, the City will reimburse
up the maximum GSA rates for the Palo Alto area. Receipts are required to back-up these
expenses.
a) Emergency overtime meals. For purposes of this section, emergency overtime is
defined as unplanned overtime arising out of situations involving real loss of
service or property or personal danger. The City agrees to reimburse for meals
based on GSA maximum rates for the Palo Alto Area and will provide meals in the
following emergency overtime situations:
1) When an employee is called back and is on duty for a period of three
consecutive hours, and thereafter at intervals of five hours, but not more than
six hours, until the continuous overtime assignment ends.
OR,
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2) When an employee is held over on duty so that his/her overtime assignment
extends two hours after shift end, and thereafter at intervals of five hours, but
not more than six hours, until the continuous overtime assignment ends.
OR,
3) When an employee is called out two hours or more before a regularly
scheduled day shift and works the regularly scheduled shift, he/she will be
entitled to breakfast and lunch. Lunches will be consumed on employee's own
time. No in-lieu pay will be made for meals not taken. This sub-section does
not apply if already covered in Section 4(a)(1) above.
4) When recalled two hours or less after the end of a regular shift, unless
assigned to standby.
b) Non-emergency overtime meals. The City will provide meals for personnel
assigned to non-emergency overtime work where the assignment extends two
hours after the regular or overtime shift end and at intervals of five hours
thereafter.
c) With regard to (a) and (b) above, the City agrees to reimburse for meals based on
GSA maximum rates for the Palo Alto Area. Where possible, the City will arrange
purchase orders at mutually agreeable restaurants. The time necessarily taken to
consume a meal provided under this section shall be considered as time worked
to a maximum of one hour, except as noted in (a) (3).
d) With regard to (a) and (b) above, in the event an employee is to be provided a
meal or meals pursuant to this section and such meal(s) are not provided due to
working conditions, the employee shall have the option of receiving for each meal
not provided an additional one hour of overtime compensation in lieu of such
meal. This hour will not be considered as time worked or part of the rest period,
but will be applied to qualify for the rest period.
e) Emergency overtime meals for Public Safety Dispatchers. The Police Department
will provide meals to employees in an emergency overtime situation involving real
or potential loss of service or personal danger.
1) When an employee is called back and is on duty for a period of three
consecutive hours, and thereafter at intervals of five hours, but not more than
six hours, until the continuous overtime assignment ends.
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2) When an employee is held over on duty so that his/her overtime assignment
extends two hours after shift end, and thereafter at intervals of five hours, but
not more than six hours, until the continuous overtime assignment ends.
3) When an employee is called out two hours or more before a regularly
scheduled shift. The employee will be entitled to two meals, the second meal
will be consumed on the employee's own time. No in-lieu pay will be made
for meals not taken.
4) When recalled two hours or less after the end of a regular shift, unless
assigned to standby.
f) Non-emergency overtime meals for Public Safety Dispatchers. The Police
Department will provide meals to employees in non-emergency situations where
the assignment extends more than two hours after the regular or overtime shift
end and at intervals of five hours thereafter. If the City is unable to provide a meal,
the City agrees to reimburse for meals based on GSA maximum rates for the Palo
Alto Area. This policy only applies when an employee is held over, either voluntary
or mandated, on duty beyond a scheduled regular or overtime shift.
Section 5 - Break Periods. All employees shall be granted a break period or coffee break
limited to 15 minutes during each four hours of work. Departments may make reasonable
rules concerning break period scheduling. Break periods not taken shall be waived.
Section 6 - Clean-Up Time. All employees whose work causes their person or clothing to
become soiled shall be provided with reasonable time before lunch and at shift end for
wash-up purposes.
Section 7 - Standby Pay, Call-Out Pay.
a) Standby Compensation. Employees performing standby duty shall be
compensated at the daily rates established below:
Monday through Friday $70
Saturday, Sunday, Holidays $100
In the event of a declared City emergency, this section applies to standby assigned
in accordance with applicable department policy.
b) Minimum Call-Out Pay. Employees not otherwise excluded from receiving
overtime pay who are called out to perform work shall be compensated for at
least two hours' pay from the time of the call-out for each occurrence at the
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appropriate overtime rate. The two-hour minimum does not apply to employees
called out to work while earning pay for being in a standby status unless called out
to perform billable customer convenience work in which case the two-hour
minimum will apply.
Section 8 - Night Shift Premium. Night Shift premium is paid at a rate of 6% of an
employee’s base hourly rate. Night Shift premium is paid only for hours actually worked
between 6:00 p.m. and 8:00 a.m. Employees who regularly work night shifts shall receive
appropriate night shift premiums, relating to night shift hours worked, in addition to base
pay for holidays, sick leave and vacation.
In order to be eligible for night shift premium, an employee must meet the following
criteria:
a) Be assigned to a shift on a regular basis which is scheduled for at least 2 hours
between the hours of 6:00 p.m. and 8:00 a.m.;
b) Or be assigned to work another employee’s regularly assigned shift which is
scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.;
c) Or if your schedule is temporarily changed under Section 3 of this article which is
scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.
The following are excluded from eligibility for night shift premium:
a) Overtime hours;
b) Alternate work schedules at an employee’s request which overlap with the hours
of 6:00 p.m. and 8:00 a.m.
Section 9 - Bilingual Premium. $50 per pay period shall be paid to a bilingual employee
whose abilities have been determined by the Human Resource Director as qualifying to
fill positions requiring bilingual speaking and/or writing ability when the employee
regularly performs such duties. The Human Resource Director will determine the
number, timing, location and duration of the assignments receiving the additional pay
provided herein and which languages are needed. Sign language shall be recognized as a
bilingual skill under this Article. Disagreements over the designation of positions will be
referred first to the Labor Management Committee. If a disagreement still exists it will
be referred to the Grievance Procedure. Human Resources will respond to the employee
within sixty calendar (60) days after receipt of request. Upon approval by the Human
Resources Director, the City is required to arrange for language testing within four (4)
months of the approval.
Section 10 - Communications Training Officer (CTO) Compensation. Public Safety
Dispatchers and Chief Public Safety Dispatchers identified by Management to work as a
Police Officers Standards and Training (POST) certified CTO will be compensated at a
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premium pay rate of five (5) percent. The premium pay is provided only for those hours
spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center.
ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES
Section 1 - Uniforms.
a) The City will provide uniforms, coveralls or shop coats on a weekly basis, or as
otherwise furnished, for the following jobs and/or classifications and any positions
necessary or required as determined by management.
Animal Control Officer
Assistant Storekeeper
Associate Engineer - Pretreatment
Auto Service Mechanic
Building Service Person - Lead
Building Service Person
Cathodic Technician
Cement Finisher - Lead
Cement Finisher
Chemist
Community Service Officer (CSO)
Electrical Assistant
Electrician Apprentice
Electrician Lead
Engineering Technician III - Refuse
Equipment Operator
Equipment Operator - Lead
Facilities Carpenter
Facilities Electrician
Facilities Maintenance - Lead
Facilities Mechanic
Facilities Painter
Field Serviceperson
Gas System Shop/Field Repairer
Gas System Technician I
Gas System Technician II
Golf Course Equipment Mechanic
Golf Course Maintenance Person
Heavy Equipment Operator - Lead
Heavy Equipment Operator
Industrial Waste Inspector
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Industrial Waste Investigator
Instrumentation Electrician
Laboratory Technician, Water Quality Control
Line Person/Cable Splicer
Line Person/Cable Splicer - Lead
Mail Services Specialist
Maintenance Mechanic/Maintenance Mechanic, Water Quality Control
Mechanical Unit Repairer
Meter Reader
Meter Reader – Lead
Mobile Service Technician
Motor Equipment Mechanic - Lead
Motor Equipment Mechanic
Offset Equipment Operator - Lead
Offset Equipment Operator
Park Maintenance Assistant
Community Services Officer Park Maintenance Person
Park Crew - Lead
Park Maintenance - Lead
Park Ranger
Parks & Open Space Assistant
Police Records Specialist
Refuse Disposal Attendant
Senior Chemist
Senior Industrial Waste Inspector
Senior Industrial Waste Investigator
Senior Instrumentation Technician
Senior Operator, Water Quality Control
Senior Mechanic, Water Quality Control
Senior Park Ranger
Sprinkler System Repairer
Street Maintenance Assistant
Storekeeper
Storekeeper-Lead
Street Sweeper Operator
Traffic Control Maintainer - Lead
Traffic Control Maintainer II
Traffic Control Maintainer I
Tree Trimmer-Line Clearer
Tree Maintenance Assistant
Tree Trimmer-Line Clearer Assistant
Tree Trimmer-Line Clearer - Lead
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Tree Maintenance Person
Truck Driver
Utilities Compliance Technician
Utility Field Service Representative
Utility Installer/Repairer
Utility Installer/Repairer Assistant
Utility Installer/Repairer – Lead
Utility Locator
Water Meter Cross Connection Technician
Water System Operator - Lead
Water System Operator
Water System Operator I
Water System Operator II
Water Quality Control Plant Operator
b) Coveralls will be made available for occasional use as needed to protect clothing
for the following classifications and any positions necessary or required as
determined by management.
Building Inspector
Building Inspector Specialist
Building Service Person - Lead
Cable Splicer Assistant
Chief Electric Underground Inspector
Electrical Assistant
Electrician
Facilities Mechanic/Painter
Heavy Equipment Operator
Lineperson/Cable Splicer
Park Ranger
Senior Park Ranger
Utility Field Service Representative
Sprinkler System Repairer
Utility Installer Assistant
Utility Installer/Repairer
Utility Installer/Repairer - Lead
c) Employees required to wear uniforms shall be provided suitable change rooms
and lockers where presently provided.
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d) Employee clothing seriously damaged or destroyed in conjunction with an
industrial injury will be reasonably replaced by the City. Any other claims alleging
City liability may be filed with the City Attorney.
e) Except in the Utilities Division, the City will make available, as an alternative to the
shirts currently provided under Section 1(a), six (6) cotton polo shirts. Employees
in the Utilities Division will be provided with six (6) long-sleeve shirts and two polo
shirts. Employees will be responsible for laundering the shirts. Damaged or
otherwise unwearable shirts will be returned to the employee’s supervisor and
replaced by the City.
f) Employees are responsible for laundering Park Ranger and Senior Park Ranger
uniforms.
g) The City will meet and confer with the Union regarding any mandated changes to
uniforms.
h) In accordance with California Code of Regulations (C.C.R.) section 571(a) the
estimated value of City provided uniforms is $21.28 per pay period.
Section 2 - Tool Allowance.
a) Mechanics in Equipment Maintenance, Park Maintenance Lead, Motorized
Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance
of $1000610 annually upon verification of purchase by the employee.
b) Parties will meet and confer to determine if additional classifications require tool
allowance.
Section 3 - Shoe Allowance.
a) Safety Shoes. The City will pay the vendor or reimburse full-time employees up to
$400 per fiscal year for the cost of job-related safety shoes upon verification of
such purchase by the employee.
b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related
walking shoes for any positions necessary or required as determined by
management including Meter Reader and Meter Reader-Lead, in an amount not
to exceed $300.00 per year. A walking shoe is a durable work shoe/boot (non
steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water
resistant; lightweight and durable; and also provides hard surface cushioning.
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b)c) Additional Boot Reimbursements. Employees in the Park Ranger
Classification will receive an additional $200 per year to account for the additional
cost of wildland fire boots for a total Safety Shoe reimbursement of $600.
Employees in the Lineperson series will receive an additional $200 per year to
account for the additional cost of climbing boots for a total Safety Shoe
reimbursement of $600.
Section 4 – Certifications. The parties agree to retain the current list of required
certifications below. Employees who are required to maintain commercial driver's
licenses shall have costs for medical examinations paid by:
a) Completing an examination through their PEMHCA provider. After benefits have
been paid by the PEMHCA provider, upon presentation of proper documentation,
the City will reimburse any remaining costs, or
b) Completing an examination at the Workforce Medical clinic or other City
designated clinic. Employees may use paid leave for attendance at scheduled
medical examinations. Employees shall be permitted to use up to two hours of
regular City-paid time for attendance at biannual medical examinations. The
scheduling of such time shall be preauthorized by the employee’s supervisor.
c) The City will pay special registration and/or certification fees which are required
by Management. During the term of this agreement, the City and the Union may,
by mutual agreement, review, add or delete classifications and/or required
certifications listed below:
Classification Requirement
Facilities Technician Aquatics Facility Operator Certificate
Building Inspector/
Buildg Inspection Specialist Certificate as stated in job description
Cathodic Technician Corrosion Technician by the National
Assoc. of Corrosion Engineers
Engineer Professional Professional Engineer Cert. (for step E)
Equip Maint Serv Pers. Forklift Operator Cert. (OSHA-approved)
Golf Course Maint Pers. Qualified Applicators' License
Heavy Equipment Operator Crane Operation Certificate
(Utilities and Electric)
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Indust. Waste Inspector Backflow Prevention Device Tester
Inspector Field Services, Utilities D1 (DOH)
Hired before July 1, 2012
Installer/Repairer Series D1 (DOH)
Maintenance Mechanic Crane Operator Certification
(Water Quality)
Mech. Unit Repairer Welding Certificate
Motor Equip Mechanic
and Lead EMS, ASE
Planner, Associate Planner AICP
Senior Planner
Public Safety Dispatcher POST Basic Dispatcher
EMD
Public Safety Dispatcher, Lead POST Basic Dispatcher
POST Supervision
EMD
Senior Operator, WQC Grade III Wastewater Treatment Plant
Operator Certification
Surveyor, PW Licensed Land Surveyor
Tree Trimmer/Line Clearer Certified Tree Worker and/or Qualified
Line Clearance/Tree Trimmer Cert.
(OSHA-approved)
Tree Trimmer/Line Clearer-Lead Certified Arborist
Utilities Install/Rep series Polyethylene Fusing Cert.
Gas Operator Certification (DOT)
Veterinarian Technician Animal Health Tech. Certification
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Water System Operator I Grade DI – Water Distribution Operator
Water System Operator II Grade DII – Water Distribution Operator &
Grade TII – Water Treatment Operator
Senior, Water System Operator Grade DIII – Water Distribution Operator &
Grade TIII Water Treatment Operator
WQC Plant Operator I Grade I Wastewater Treatment Operator
Certification.
WQC Plant Operator II Grade II Wastewater Treatment Operator
Certification
WQC Plant Operator Trainee Grade I Wastewater Treatment Operator
Certification
Water Meter Cross-
Connection Technician Backflow Prevention Tester Certification
d) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all
employees required to maintain a Commercial Driver's License in accordance with
the California Vehicle Code and applicable laws prescribed by the Department of
Transportation.
e) Pipeline Welding Assignment. The City provided a 4% premium in base
compensation to the Utility Installer-Repairer and the Installer-Repairer Lead
positions in 2006 that met DOT certification requirements and are, or were,
assigned these duties. The Utility Installer-Repairer and Utility Installer-Repairer
Lead positions that fail to maintain current certifications will not receive a 4%
premium on their base pay. Positions assigned these duties and designated by
Management to receive this premium will not exceed five (5) Utility
Installer/Repairer(s) and Installer/Repairer Lead(s). If the certification is required
in the job description, certification must be maintained. In accordance with their
job description Maintenance Mechanics that are assigned to Water Gas
Wastewater must maintain all required certifications and shall receive 4%
premium to their base pay for pipeline welding.
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f) Building Inspector and Building Inspector Specialists. Upon successful
completion of probationary requirements, the City will pay Building Inspectors
and Building Inspector Specialists a one (1) percent of base salary one-time
payment for a certification above what is required. Employees may request one
payment per year to a maximum of two payments in career. Payments will not
exceed a maximum of one percent per year or two payments in a career. The
Building Inspector and Building Inspector Specialist Job Descriptions specify
current requirements and the Union and City will agree on a list of appropriate
certifications eligible for the premium. Premiums will not be paid if certification
is not maintained.
g) Water and Wastewater System Operator Certification. Employees classified in
the following positions: Water Quality Control Plant Operators I and II, Senior
Operator Water Quality Control, Laboratory Technician Water Quality Control,
Chemist, Senior Chemist, Water System Operators I and II, Senior Water Systems
Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job
Series may be eligible to receive a 1% base pay premium for certifications required
by the Department of Health, California Water Environment Association and/or
the State Water Resources Control Board. Employees within these job
classifications that have successfully completed probationary requirements may
request an annual payment of one (1) percent for one (1) certification that is
above those listed in their job description. An employee who qualifies for this
payment shall be paid 1% of the employee’s annual base salary once per year. The
employee shall be responsible for providing the City with written documentation
that the employee has obtained and is maintaining the qualifying certification on
an annual basis. Premiums will not be paid if certification is not maintained.
Eligible employees should verify certification will qualify for the premium before
attempting certification. The Union and the City will update the job descriptions
to reflect newly required certifications with no further adjustments to base salary.
Payments will not exceed a maximum of one percent per year, and will take effect
in the pay period following the verification of certification. All costs for obtaining
certifications above what the job description requires will be the responsibility of
the employee and may be paid for by using the City’s tuition reimbursement
program.
h) In accordance with Cal-OSHA regulations any employee who operates a forklift
must have Forklift Operator Certification. Training to be provided by the City.
i) Crane Certification. A Heavy Equipment Operator, Line Person, Line Person Lead,
or Maintenance Mechanic who possesses the legally required certification for
operation of any crane will receive an increase of one percent (1%) of their base
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rate effective upon the ratification and adoption of this MOU by the City Council,
or upon attainment of the certification, whichever is later.
Heavy Equipment Operator (Electric) must possess a Crane certification regardless of
hire date. Any employee hired on or after July 1, 2012 may be required to obtain and
possess crane certification.
For any other employee hired prior to July 1, 2012 crane certification shall be desirable
(not required) except under the following circumstances:
a) There are insufficient employees in the classification (Heavy Equipment Operator
[exclusive of Electric], Lineperson, Lineperson Lead or Maintenance Mechanic)
who possess the certification to perform the work;
b) The Manager has sought volunteers and no employee in the classification has
volunteered to train for the certification;
c) All things being equal, the manager has selected the least senior employee in the
classification who is judged by the City most likely to successfully complete the
training and obtain crane certification.
d) The Manager will allow up to three attempts to pass the crane certification for any
employee hired before July 1, 2012 who has been involuntarily assigned to acquire
the crane certification. Related training and test costs shall be borne by the City.
No employee hired before July 1, 2012 shall be disciplined or discharged for failure
to acquire a Crane certification.
Section 5 - Weather Protection. The City will provide rainy weather foot protection and
one summer hat for the classification of Community Services Officer.
ARTICLE X - HOLIDAYS
Section 1 - Fixed Holidays. Except as otherwise provided, employees within the
representation unit shall have the following fixed holidays with pay:
January 1
Third Monday in January (Martin Luther King Day)
Third Monday in February
Last Monday in May
July 4
First Monday in September
Second Monday in October
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Veterans' Day, November 11
Thanksgiving Day
Day after Thanksgiving
December 25
Either December 24 or December 31Winter Floater (see below)
Employees shall be excused with pay for the full work shift on either December 24 or
December 31, provided, however, that City facilities remain open with reduced staffing
levels, that Management retains the right to determine work schedules, and that neither
day be considered a holiday for purposes of premium pay. If employees are not excused
pursuant to this provision, one shift of vacation credit will be added to their vacation
accrual.
In the event that any of the aforementioned days, except for December 24 or December
31, falls on a Sunday, the following Monday shall be considered a holiday. In the event
that any of the aforementioned days falls on a Saturday, the preceding Friday shall be
considered a holiday. If December 24 and 31 falls on Sunday, then the preceding Friday
will be designated for purposes of the holiday. Exceptions to this provision are listed in
Appendix E.
Winter Floater. Employees shall be excused with pay for a full work shift on a day mutually
agreed to by the employee and their supervisor during the month of December. If
employees are not excused pursuant to this provision, one shift of vacation credit will be
added to their vacation accrual.
Day of Reflection. In addition to the paid holidays listed above, employees shall be
excused with pay for one full work shift as a day of reflection (floating holiday) per
calendar year. Employees may use the floating holiday on any day mutually agreed by the
employee and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day
(June 19) or Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by
the end of the fiscal year will be deemed forfeited and have no cash value.
Section 2 - Pay for Fixed Holidays.
a) All employees shall be paid a full day's pay at their regular straight time base hourly
rate for all fixed holidays as defined herein.
b) An employee must be in a pay status on the workday preceding the holiday to be
eligible to be compensated for a holiday. This subsection does not apply to an
employee who is on an unpaid medical leave of absence of less than five (5) days.
Section 3 - Work on Fixed Holidays.
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Any employee required to work on a fixed holiday shall be paid time and one-half for such
work in addition to his or her regular holiday pay. Work on a fixed holiday beyond the
number of hours in a regular shift shall be compensated at double time and one-half.
Employees who work a schedule where a regular day off falls on a holiday will accrue the
holiday hours they would have normally worked on that day. If an employee has more
than four (4) days of holiday time accrued the City will automatically cashout these
additional hours. This does not impact the employee’s ability to cashout or transfer to
deferred comp holiday hours below the four (4) day threshold.
Section 4 - Variations in Work Week.
a) An employee whose work schedule requires that his or her regular days off be other
than Saturday and/or Sunday shall have an additional day off scheduled by the
department in the event a fixed holiday falls during his or her regularly scheduled day
off. Every attempt will be made to schedule the day on a mutually agreeable basis. If
the day cannot be so scheduled, the employee shall be paid for the day at the straight
time base rate.
b) Fixed holidays which fall during a vacation period or when an employee is absent
because of illness shall not be charged against the employee's vacation or sick leave
balance.
c) If conditions necessitate a departmental closure impacting employees’ regular
schedules, management will work with employees to provide assignments unless the
employee chooses to take unpaid time off or use paid time off in the form of vacation,
personal business or compensatory time.
Section 5 - Floating Days Off
Employees hired on or before July 1, 2012 will be credited with 3 floating holidays to be
scheduled for use by mutual agreement by employee and supervisor. In no event will FH
be convertible to cash or other benefits in lieu of Floating Holidays.
Effective at the close of business 6/30/13 one floating holiday will be eliminated. On July
1, 2013 and every July thereafter, employees will be credited with two (2) Floating
Holidays to be scheduled in the same manner as noted above.
Employees hired after 7/1/12 will not receive any floating holidays.
Floating Holidays not used by the end of the fiscal year will be deemed forfeited.
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ARTICLE XI - VACATIONS
Section 1 - Vacation Accruals. Each employee shall be entitled to an annual paid vacation,
accrued as follows:
a) First day of continuous service through the last day of the fourth (4th) year: eighty 80
hours vacation per year.
b) First day of the fifth year of continuous service through the last day of the ninth (9th)
year: one-hundred and twenty 120 hours vacation per year.
c) First day of the tenth (10th) year of continuous service through the last day of the
fourteenth (14th) year: one-hundred and sixty 160 hours vacation per year.
d) First day of the fifteenth (15th) year of continuous service through the last day of the
nineteenth (19th) year: one-hundred and eighty 180 hours vacation leave per year.
e) Twenty (20) or more years: two-hundred 200 hours vacation leave per year.
Vacation accrual will be prorated based on hours in paid status.
Employees may accrue up to (3) three (3) times their annual vacation leave without loss
of vacation daysaccrual (e.g., an employee who accrues 80 hours per year has an accrual
cap of 240 hours). In the event the City is unable to schedule vacation and, as a result
thereof, the employee is subject to loss of accrued vacation, the City shall extend the
vacation accrual limit up to one year, in which time the excess vacation must be scheduled
and taken. As long as there is no interference with departmental operations, there shall
be no unreasonable restriction of increments of use. Employees shall complete six (6)
months' continuous service before using accrued vacation leave.
At the time of initial appointment, or to address an identified retention issue the City may
credit an employee for prior experience or special expertise, including prior years of
public service in a city, county, special district, state, or federal government agency, up to
a maximum of five (5) years’ service. The City Manager or designee shall identify the
number of years for which the employee will receive credit (up to the five (5) year
maximum).
Section 2 - Holiday Falling During Vacation. In the event a fixed holiday as defined in
Article X falls within an employee's vacation period, which would have excused the
employee from work (and for which no other compensation is made), an additional
workday for such holiday shall be added to the vacation leave.
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Section 3 - Illness During Vacation. When an employee becomes ill while on vacation and
such illness can be supported by a statement from an accredited physician or the
employee is hospitalized for any period, the employee shall have the period of illness
charged against sick leave and not against vacation leave.
Section 4 - Accrued Vacation Pay for Deceased Employees. An employee who is eligible
for vacation leave and who dies while in the municipal service shall have the amount of
any accrued vacation paid to his/her estate within thirty days. This proration will be
computed at his/her last basic rate of pay.
Section 5 - Effect of Extended Military Leave. An employee who interrupts service
because of extended military leave shall be compensated for accrued vacation at the time
the leave becomes effective.
Section 6 - Vacation at Termination. Employees leaving the municipal service with
accrued vacation leave shall be paid the amounts of accrued vacation to the date of
termination.
Section 7 - Vacation Cash Out.
Once each calendar year an employee may cash out eight or more hours of vacation
accrual in excess of 80 hours, to a maximum of 120 hours, provided that the employee
has taken 80 hours of vacation in the previous 12 months.
1. To be eligible for cash out vacation, employees must pre-elect the number of vacation
hours they will cash out during the following calendar year up to maximum of 120
hours, prior to the start of that calendar year. The election will apply only to vacation
hours accrued in the next tax year and eligible for cash out.
2. The election to cash out vacation hours in each designated year will be irrevocable.
This means that employees who elect to cash out vacation hours must cash out the
number of accrued hours pre-designated on the election form provided by the City.
3. Employees who do not pre-designate or decline a cash out amount by the annual
deadline established by the City will be deemed to have waived the right to cash out
any leave in the following tax year and will not be eligible to cash out vacation hours
in the next tax year.
4. Employees who pre-designate cash out amounts may request a cash out at any time
in the designated tax year by submitting a cash out form to Payroll. Payroll will
complete the cash out upon request, provided the requested cash out amount has
accrued and is consistent with the amount the employee pre-designated. If the full
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amount of hours designated for cash out is not available at the time of cash out
request, the maximum available will be paid.
5. For employees who have not requested payment of the elected cash out amount by
November 1 of each year, Payroll will automatically cash out the pre-designated
amount in a paycheck issued on or after the payroll date including November 1.
ARTICLE XII - LEAVE PROVISIONS
Section 1 - Sick Leave.
a) The City shall provide each employee with paid sick leave, earned on a daily basis and
computed at the rate of 96 hours per year, with no limits on amounts that may be
accumulated, except that for employees hired after July 1, 1983biweekly basis, at the
rate of ninety-six (96) hours per year for full time employees. Employees will accrue
sick leave at a rate of three point seven (3.7) hours per pay period. Sick leave accrual
will be prorated based on hours in paid status., Ssick leave accrual accumulation shall
be limited to 1,000 hours and subsections (a)(1) and (a)(2), shall not apply. Payment
for accumulated sick leave at termination shall be made only in the following
circumstances:
1) Eligible employees who leave the municipal service or who die while employed
and who have fifteen or more years of continuous service shall receive
compensation for unused sick leave hours in a sum equal to two and one-half
percent of their unused sick leave hours multiplied by their years of continuous
service and their base hourly rate of pay at termination.
2) Full sick leave accrual will be paid in the event of termination due to disability.
b) Use of Sick Leave. Sick leave shall be allowed and used in cases of actual personal
sickness or disability, medical or dental treatment, or as authorized for personal
business. Up to nine days sick leave per year may be used for illness in the immediate
family, including registered domestic partner. A new employee may, if necessary, use
up to forty-eight (48) hours of sick leave at any time during the first six months of
employment. Any negative balances generated by such utilization will be charged
against future accrual or deducted from final paycheck in the event of termination.
c) An employee who has been disabled for 60 consecutive days and who is otherwise
eligible both for payment under the long-term disability group insurance coverage and
accrued sick leave benefits may, at his/her option, choose either to receive the long
term disability benefits or to utilize the remainder of his/her accrued sick leave prior
to applying for long-term disability benefits.
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d) Sick leave will not be granted for illness occurring during any leave of absence unless
the employee can demonstrate that it was necessary to come under the care of a
doctor while on such other leave of absence.
e) Return to Work With Limited Duty. Upon approval of department management and
the City Risk Manager, an employee may return to work for doctor-approved limited
duty. Approval for return to work shall be based upon department ability to provide
work consistent with medical limitations, the location of the work assignment, and
the length of time of the limitations. The City doctor may be consulted in determining
work limitations.
f) If an employee’s illness results in an absence from work for more than three (3)
consecutive work days or twenty-four (24) continuous hours, whichever is greater, a
doctor’s certificate or other proof of illness may be required. The department head
or designee may require a doctor’s certificate or other proof of illness when there is
reasonable cause of misuse.
g) Leave Committee
During the term of this Agreement, upon request by either party, the parties will meet
with the goal of developing alternate leave models, such as “Paid Time Off” or other
similar benefits. Any changes implemented during the term of this agreement must
be by mutual agreement only.
Section 2 - Bereavement Leave. Leave of absence with pay of three days shall be granted
an employee by the head of his or her department in the event of death in the employee's
immediate family, which is defined for the purposes of this section as wife, husband, son,
step-son, son-in-law, daughter, step-daughter, daughter-in-law, mother, step-mother,
mother-in-law, father, step-father, father-in-law, brother, brother-in-law, step-brother,
sister, step-sister, sister in- law, grandmother, grandmother-in-law, grandfather,
grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, registered domestic
partner, or a close relative residing in the household of the employee. Such leave shall be
at full pay and shall not be charged against the employee's accrued vacation or sick leave.
Request for leave with pay in excess of three (3) days shall be subject to the written
approval of the City Manager. Approval of additional leave will be based on the
circumstances of each request with consideration given to the employee's need for
additional time.
Section 3 - Military Leave. The provisions of the Military and Veterans' Code of the State
of California shall govern the granting of military leaves of absence and the rights of
employees returning from such leaves. Consistent with the Military and Veterans Code,
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the City of Palo Alto shall pay employees in SEIU bargaining unit their regular salary, salary
differential, and all available benefits for up to thirty days per calendar year.
Section 4 - Leave Without Pay.
a) Disability. Leaves of absence without pay may be granted in cases of disability not
covered by sick leave. Pregnancy will be considered as any other disability. Leaves of
absence for disability are subject to physicians' verification including diagnosis and
medical work restriction.
b) Family Leave. Family leave will be granted in accordance with applicable state and
federal law.
c) Other Leaves. Leaves of absence without pay may be granted in cases of personal
emergency, Union business or when such absences would not be contrary to the best
interest of the City. Non-disability prenatal leave is available under this provision, but
such leave shall not begin more than six months prenatal nor extend more than six
months postpartum.
During unpaid leaves of absence for disability or other reasons, the employee may elect
and the City may require that employee to use paid leave credits in a manner consistent
with state and federal law. Requests for leaves without pay shall not be unreasonably
denied. In order to avoid misunderstandings, all leaves without pay must be in writing to
be effective.
Section 5 - Jury Duty and Subpoenas. Employees required to report for jury duty or to
answer subpoenas as a witness in behalf of the State of California or any of its agencies
shall be granted a leave of absence with pay from their assigned duties until released by
the court, provided the employee remits to the City all fees received from such duties
other than mileage or subsistence allowances within thirty (30) days from the termination
of jury service. When an employee returns to complete a regular shift following time
served on jury duty or as a witness, such time falling within the work shift shall be
considered as time worked for purposes of shift completion and overtime computation.
In determining whether or not an employee shall return to his or her regular shift
following performance of the duties, reasonable consideration shall be given to such
factors as travel time and a period of rest. When a combination of City work time and
jury duty equals 14 or more hours in the 24-hour period immediately before the
employee's shift starting time, the employee will be allowed a rest period of nine hours.
Any portion of the rest period falling within the employee's work shift will be considered
as hours worked and compensated at the straight time rate. This provision does not apply
to conditions of bona fide emergency. Bona fide emergency conditions are conditions
involving real or potential loss of service or property or personal danger.
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Section 6 - Time Off to Vote. Time off with pay to vote in any general or direct primary
election shall be granted as provided in the State of California Elections Code, and notice
that an employee desires such time off shall be given in accordance with the provisions
of said Code.
Section 7 - Disapproval of Leave of Absence. In case of disapproval of extension,
revocation or cancellation of an existing leave of absence, notice shall be sent by certified
mail, return receipt requested, to the employee stating the date of such action, the reason
and a specific date to return to work, which is not less than five working days from date
indicated on return receipt.
Section 8 - Personal Business Leave Chargeable to Sick Leave. All employees shall be
granted up to thirty (30) hours personal business leave per calendar year, chargeable to
sick leave. The employee need not disclose the reason for the personal business. The
scheduling of such leave is subject to the approval of the appropriate level of
Management, and such approval shall not unreasonably be denied.
Section 9 - Return to Assignment. The department shall make every effort to ensure that
employees resuming work following a leave pursuant to Sections 1- 8 shall be returned to
the assignment, shift, and/or work location held immediately prior to the leave. If the
employee cannot be so assigned, he or she shall, upon request, be granted a meeting with
department management to discuss the reasons for the change. Upon request, the
employee shall be afforded Union representation at such a meeting.
ARTICLE XIII - WORKERS' COMPENSATION INSURANCE
Section 1 - Industrial Temporary Disability.
a) While temporarily disabled, employees shall be entitled to use accrued sick leave for
the first three (3) days following the date of injury and thereafter shall be paid full
base salary for a period of not to exceed fifty-seven (57) calendar days, unless
hospitalized, in which case employees shall be paid full base salary for a period not to
exceed sixty (60) days from date of injury.
b) For any temporary disability continuing beyond the time limits set forth in (a) above,
employees shall be paid two-thirds (66 2/3%) of their full base salary at the time of
injury for the duration of such temporary disability in conformance with the State law.
c) During the period of temporary disability, an employee's eligibility for health, dental,
life, LTD, or other insured program will continue with City contributions at the same
rate as for active employees. In case of Subsection (a) above, the employee will
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continue to accrue vacation and sick leave benefits. In the case of Subsection (b), sick
leave and vacation benefits shall not be accrued.
Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees.
Vocational Rehabilitation will be made available to employees who have suffered
permanent disability as a result of an injury or illness sustained in the course and scope
of employment before 1/1/04. For injuries on or after 1/1/04 qualified employees are
entitled to supplemental job displacement vouchers in accordance with the California
Labor Code, Division 1, Department of Industrial Relations and Division 4, Workers’
Compensation and Insurance, the Americans with Disabilities Act (ADA), and the City of
Palo Alto's Workers’ Compensation Program.
ARTICLE XIV - BENEFIT PROGRAMS
Section 1 - Health Plan.
a) Active Employees
During the term of this contract, the maximum City contribution towards medical
premiums for eligible full time employees per employee category shall be up to a
maximum of the following for any plan:
Effective January 1, 2019:
• Employee only: $804
• Employee plus one: $1,606
• Employee Family: $2,088
Effective January 1, 202320:
• Employee only: $840$906
• Employee plus one: $1,680$1,812
• Employee Family: $2,180$2,350
Effective January 1, 20241, the City will increase its maximum contribution by 50% of
average of the increases to Kaiser and PERS Choice. Provided however, that the total
increase of the maximum City contribution shall not exceed 4%.
The City’s total maximum contribution towards medical premiums for eligible part time
employees shall be prorated based on the number of hours per week the part-time
employee is assigned to work.
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PEMHCA minimum changes per statutory determination and has historically been
increased by $3 dollars each year. Any increases to the PEMHCA minimum during the
term of this contract will result in a corresponding decrease to the amount of the
additional City contribution, so that the total maximum City contribution never exceeds
the amount listed in the Maximum City Contribution described above.
b) Health Plan Coverage for Future Retirees Hired Before January 1, 2005.
Monthly City-paid premium contributions for a retiree-selected health plan through the
CalPERS Health Benefits Program will be made as provided under the Public Employees’
Medical and Hospital Care Act. Effective 1/1/07 the City’s monthly employer contribution
for each retiree and their eligible family members, as defined by the CalPERS Health
Benefits Program, shall be the amount necessary to pay for the cost of his or her
enrollment, in a health benefits plan up to the monthly premium for the 2nd most
expensive plan offered to the SEIU employee (among the existing array of plans).
However, the City contribution for an employee hired before January 1, 2005 who retires
on or after April 1, 2011 the City contribution for the retiree and their eligible family
members, as defined by the CalPERS Health Benefits Program, shall be the same
contribution amount it makes from time to time for active City employees.
The City provided active unit employees who were hired before January 1, 2005 with a
one-time opportunity to opt-in to retiree health benefits provided under California
Government Code section 22893. Eligible employees who wish to exercise this option
shall inform the People, Strategy, and Operations department of their election in writing
no later than 90 days following the ratification and adoption of this Agreement.
c) PERS – Health Benefit Vesting For Future Retirees Effective January 1, 2005 or any
existing employee who opts into this vesting schedule.
The CalPERS vesting schedule set forth in Government Code section 22893 will apply to
all SEIU employees hired on or after January 1, 2005 or any existing employees who opt
into this vesting schedule. Under this law, an employee is eligible for 50% of the specified
employer health premium contribution after ten years of service credit, provided at least
five of those years were performed at the City of Palo Alto. After ten years of service
credit, each additional year of service credit will increase the employer contribution
percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon
retirement for 100% of the specified employer contribution. However, the maximum
contribution for eligible family members, as defined by the CalPERS Health Benefits
Program, will be 90% of the specified employer contribution. The City of Palo Alto's health
premium contribution will be the minimum contribution set by CalPERS under section
22893 based on a weighted average of available health plan premiums.
d) Retiree Health Committee
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During the term of this agreement the parties will maintain a Retiree Health Committee.
The Union shall appoint two (2) Union members (and one Union staff person) to serve on
this committee who shall receive reasonable release time to attend Retiree Health
Committee meetings. Changes to this section during the term of this Agreement will be
by mutual agreement only. The parties agree that Retiree Health Committee meetings
may be attended by representatives of other City labor groups.
e) Coverage for Domestic Partners.
Domestic Partnership Registered with the California Secretary of State. Employees
may add their domestic partner as a dependent to their elected health plan coverage
if the domestic partnership is registered with the Secretary of State.
Domestic Partnership Not Registered with the California Secretary of State.
Domestic partners who meet the requirements of the City of Palo Alto Declaration of
Domestic Partnership, and are registered with the Human Resources Department, will
be eligible for a stipend of two hundred and eighty four dollars ($284.00) per month
toward the cost of an individual health plan. Evidence of premium payment will be
required with request for reimbursement.
f) Alternative Medical Benefit Program.
If a regular employee and/or the employee’s dependent(s) are eligible for and elect
to receive medical insurance through any other non-City of Palo Alto employer-
sponsored or association-sponsored group medical plan, the employee may choose
to waive his/her right to the City of Palo Alto’s medical plan insurance and receive
cash payments in the amount of two hundred eighty-four dollars ($284) for each
month City coverage is waived.
Examples of waivers eligible for this payment are:
• Employee waives all applicable City medical coverage; or
• Employee is eligible to enroll his or her spouse or domestic partner and waives
medical coverage for the spouse or domestic partner; or
• Employee has additional eligible dependents and waives family-level medical
coverage.
Participation must result in a health insurance cost savings to the City and payments
per employee shall not exceed a total of two hundred eighty four dollars ($284.00)
per month. To participate in the program the employee and dependents must be
eligible for coverage under PEMHCA medical plans, complete a waiver of medical
coverage form, and provide proof of eligible alternative medical coverage.
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Payments will be made in the employee’s paycheck beginning the first month
following the employee’s completion of the waiver form. Payments are subject to
state and federal taxes and are not considered earnings under PERS law. Employees
are responsible for notifying the City of any change in status affecting eligibility for
this program (for example, life changes affecting dependent’s eligibility for medical
coverage through the employee) and will be responsible for repayment of amounts
paid by the City contrary to the terms of this program due to the employee’s failure
to notify the City of a change in status.
If the State of California or federal government requires the City to participate and
contribute toward coverage under any medical plan outside of PEMHCA including but
not limited to the Affordable Care Act, the City’s total liability for enrolled employees
and retirees and their eligible family members shall not exceed what the City would
have paid toward PEMHCA coverage in the absence of such state or federal plan. The
parties will meet and confer over the impact of such change on matters within the
scope of representation before implementing any change.
Section 2 - Dental Plan.
a) The City shall continue to provide a self-funded dental program for the benefit of City
employees and their eligible dependents. The City shall pay 100% of the required
premiums for the program, except that benefits for regular part-time employees will
be prorated as follows: Employees hired after January 1, 2005, who will work less than
full time, will receive prorated premium costs for dental benefits in accordance with
his/her percentage of a full-time work schedule. Part-time employees currently
receiving full benefits will not be impacted.
b) The City’s Dental Plan provides the following:
• Maximum Benefits per Calendar Year $2,000 per person.
c) Effective July 1, 2001, dental implants in conjunction with one or more missing natural
teeth, and removal of implants will be covered as a Major Dental Service at 50% usual,
customary and reasonable (UCR).
d) Effective 1/1/07 the City will add composite (tooth colored) fillings in dental plan
posterior teeth.
e) Effective 1/1/07 the City will pay up to $2000.00 for Orthodontia coverage.
Section 3 - Vision Care. The City shall continue to provide a self-funded vision care
program for the benefit of City employees and their dependents. The City shall pay 100%
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of the required premiums for the program. The benefits of the vision care program shall
continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan.
Vision benefits for regular part-time employees hired or assigned to a part-time schedule
will be prorated in accordance with his/her percentage of a full- time work schedule.
Section 4 - Life Insurance. The City agrees to continue the Basic and Supplemental life
insurance plan as currently in effect for the term of this Memorandum of Agreement.
Section 5 – Long Term Disability Insurance. The City shall continue the long term
disability insurance plan currently in effect for the term of this Memorandum of
Agreement. For Plan A, the benefit is 66 and 2/3% of pre-disability earnings to the
maximum benefit level of $4000.00 per month. Employee coverage is subject to a
voluntary payroll deduction of the insurance premium applicable to the first $6,000 of
monthly salary, less a credit of $11.17 per month to be paid by the City. For Plan B, the
benefit is 60% of pre-disability earnings up to the maximum benefit level of $1800 per
month. Employee coverage is subject to a voluntary payroll deduction of the insurance
premium applicable to the first $2000 of monthly salary for Plan B. The City will pay
premiums in excess thereof.
Section 6 - Effective Date of Coverage for New Employees. For newly-hired regular
employees, elected coverage will begin on the first day of the month following date of
hire.
Section 7 - Dual Coverage. When a City employee is married to another City employee
each shall be covered only once (as an individual or as a spouse of the other City
employee, but not both) and dependent children, if any, shall be covered by only one
spouse.
Section 8 - Deferred Compensation. The City shall continue to make available a Section
457 Deferred Compensation Plan to SEIU employees and will insure reasonable access
to Deferred Compensation representatives for all interested employees.
Section 9 – Dependent Care Assistance Program and Medical Flexible Spending
Accounts. The City shall continue to provide a Dependent Care Assistance Program
(DCAP) and Medical Flexible Spending Accounts (FSA) for employees that comply with
Section 125 of the Internal Revenue Code. Calendar year limits are set by the IRS. All
matters related to the FSA shall be excluded from the grievance requirements of this
MOA (per side letter agreed to in 2011).
a) Dependent Care Assistance Program: Can be used to pay for qualified day care (or
dependent care) expenses with pre-tax dollars.
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b) Medical FSA: Provides reimbursement for excess medical/dental/vision, or expenses
that are incurred by employees and their dependents which are not covered or
reimbursed by any other source, including existing City-sponsored plans. The City will
deduct the annual administrative fee through a payroll deduction (currently $4 as of
2015) or if the employee has unused FSA dollars from the prior calendar year, the City
will apply those dollars to cover the administrative fee.
Section 10 - Training Programs.
a) Employees assigned by the City to attend meetings, workshops, or conventions of
their professional or technical associations shall have their dues and reasonable
expenses paid by departmental funds and shall be allowed to attend such workshops,
meetings, and conventions on paid City time.
b) City will reimburse for travel, meals and lodging while away from home attending an
educational conference that the supervisor authorizes as being job related or which
will improve an employee’s skills. Per City Policy and Procedure 1-02, the Pre-Travel
Authorization Form should indicate expenses that will be paid.
ARTICLE XV – RETIREMENT
Section 1 - PERS Continuation.
a) Pension Group A: 2.7% @ 55. The City will continue the present benefits under the
Public Employees' Retirement System 2.7% at 55 for employees hired before July 17,
2010. The Parties acknowledge that employees under this formula hired before July
17, 2010 are subject to a final compensation calculation, for pension determination
purposes, based on their single highest year of compensation earnable as provided by
Government Code Section 20042.
b) Pension Group B: 2.0% @ 60 – (Single Highest Year). For employees hired on or after
July 17, 2010 and before January 1, 2013, and employees hired on or after January 1,
2013 who are not “new members” of CalPERS as defined in the Public Employees’
Pension Reform Act (often referred to as “Classic” CalPERS members), but before the
adoption of the modified 2% at 60 formula described below, whichever is later, the
City will continue to provide the 2% at 60 retirement formula (“2% at 60”). The Parties
acknowledge that employees under the existing 2% at 60 pension formula are subject
to a final compensation calculation, for pension determination purposes, based on
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their single highest year of compensation earnable as provided by Government Code
section 20042.
c) Pension Group C: 2.0% @ 60 – (3 Highest Years). The City shall further amend its
contract with CalPERS to provide miscellaneous “Classic” CalPERS members hired on
or after August 1, 2013 with the CalPERS retirement formula two percent (2.0%) of
final compensation at age sixty (60) with a final compensation calculation, for pension
determination purposes, based on the employee’s three consecutive highest years of
compensation earnable, as provided by Government Code section 20037. The City
may delay the adoption or implementation of the foregoing amendment to the
extent it deems such delay necessary to accommodate legal and administrative
requirements. In such event, employees hired between and including August 1, 2013
and the day before the amendment’s implementation date will be placed in the 2% of
final compensation at age 60 formula with single highest year earnable compensation
as described above.
d) Pension Group D: 2% @ 62. Employees hired on or after January 1, 2013 meeting the
definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t.
Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but
not limited to the two percent at age 62 (2%@62) retirement formula with a three
year final compensation period.
Section 2 - Employee Share.
Effective with the first pay period including July 1, 2012 employees in Pension Groups A,
B and C described in Section 1 above shall pay 8% if enrolled in the 2.7%@55 benefit or
7% if enrolled in the 2%@60 benefit.
Employees in Pension Group D shall pay the employee contribution required by the Public
Employees’ Pension Reform Act, calculated at fifty percent (50%) of the normal cost.
Section 3. Employer Share.
Effective the first full pay period following December 1st, 2017, employees (Groups A-D)
shall pay one percent (1.0%) of their salary toward the employer cost of retirement (in
addition to the employee share) in accordance with Section 20516 of the California
Government Code.
Effective the first full pay period including December 1, 2020, employees in this unit
(Groups A-D) shall pay an additional 1% of their salary toward the employer cost of
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retirement for a total of 2% (in addition to the employee share) contribution toward the
employer share.
This will result in SEIU employees in Groups A-D paying a total of two (2) percent of the
employer share (in addition to the employee share) effective the first full pay period
including December 1st, 2020.
ARTICLE XVI - COMMUTE INCENTIVES AND PARKING
Section 1 - Commute Incentive. It is the City’s interest to reduce single occupancy vehicle
trips to the extent possible in order to address current traffic and environmental
challenges. During the term of this agreement, the parties shall meet and confer on
changes to the City’s commute incentive and parking program adopted by the City
Council. Eligible employees may voluntarily elect one of the following commute
incentives:
a. Civic Center Parking. Employees assigned to Civic Center and adjacent work
locations. The City will provide a Civic Center Garage parking permit. New
employees hired after April 30, 1994 may initially receive a parking permit for
another downtown lot, subject to the availability of space at the Civic Center
Garage.
b. Carpool. The City will provide $30 per month (taxable income) to each eligible
employee in a carpool for 60% or more of their scheduled work days per
month with two or more people.
c. Bicycle. The City will provide $20 per month to eligible employees who ride a
bicycle to work. This payment is available through the CCD web site in the
form of a special Commuter Check (tax free) for bike equipment, gear or
repairs. This benefit cannot be combined with other commute benefits.
d. Walk. The City will provide $20 per month (taxable income) to eligible
employees who walk to work 60% or more of their scheduled work days.
e. Transit or vanpool users: Tax-free incentives up to the IRS limit (currently
$255/month) are available through the Commuter Check Direct (CCD) web site
for employees using Bay Area public transportation or riding in a registered
vanpool at least 60% of their scheduled work days.
f. Go Pass. The Go Pass program will offer civic center and other downtown-
based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in
all zones seven days per week.
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g. The City and Union agree to meet in Labor Management Committee to assess
and improve the application of the telecommuting policy and option for
employees.
The deadline for registering with CCD and placing an online order is 8:59 p.m. on the 7th
of each month, for the next month’s benefit. For example, employees wishing to order
a transit pass by June must place their online orders with CCD by May 7th.
Section 2 – Parking Lot Security – Municipal Service Center. The City will provide fenced
and locked parking facilities for Municipal Service Center employees. Procedures will be
established for entering and leaving the parking facilities.
Section 3 – Bicycle Lockers and Motorcycle Parking. The City will provide bicycle lockers
and motorcycle parking areas for City employees at mutually agreeable work locations.
ARTICLE XVII - PHYSICAL EXAMINATIONS
If any non-probationary employee who is required to have a City-provided physical
examination not related to workers' compensation programs disagrees with the findings
of the City-sponsored physician, he/she may consult with his/her own physician and, if
his/her private physician's report conflicts with that of the City physician in terms of ability
to work at his/her regular job, then he/she may request an evaluation of his/her problem
through a third physician mutually agreed upon by the employee and the City. Cost for
such examination will be equally shared and the decision of this physician concerning the
continuing ability of the employee to perform his/her work in his/her regular job without
exposing himself/herself to further injury as a result of his/her condition shall be the basis
for returning the employee to his/her regular work.
ARTICLE XVIII – SAFETY
Section 1 - Health and Safety Provisions. The City shall furnish and use safety devices and
safeguards and shall adopt use practices, means, methods, operations and processes
which are reasonably adequate to render such employment and place of employment
safe, in conformance with applicable safety regulations under the State Labor and
Administrative Code sections. The City shall not require or permit any employee to go to
or be in any employment or place of employment which is not safe.
Section 2 - Union Cooperation. Union will cooperate with the City by encouraging all
employees to perform their work in a safe manner.
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Section 3 - Safety Committees and Disputes. Safety committees composed of
Management and Union stewards in the below listed organizations will meet no less than
six (6) times annually to discuss safety practices, methods of reducing hazards, and to
conduct safety training. This shall in no way remove the basic responsibility of safety from
Management nor shall it in any way alter the responsibility of the employee to report
unsafe conditions directly and immediately to his or her supervisor.
Community Services
Public Works
Water-Gas-Wastewater Field Operations
Electric Field Operations
Water Quality Control
a) A ten-member Citywide Union/Management safety committee with equal Union and
Management membership will meet upon call to review safety and occupational
health standards and practices, discuss overall City safety and health problems, and
to act as an advisory group to the departmental safety committees. The committee
shall review all departmental safety programs and recommend change where
necessary.
b) In cases of dispute over safe working conditions the employee will first report such
unsafe conditions to his or her supervisor and every attempt will be made to rectify
the problem at this level. The employee may contact his or her steward to assist in
the resolution of the dispute. If the problem cannot be resolved the Risk Manager will
be contacted and the problem will be addressed through the interpretation of the
basic safety rules and regulations. Should the problem not be resolved at this step,
the grievance procedure will be utilized. Safety grievances shall be submitted at Step
III.
c) The City will continue employee workplace evaluations in compliance with CalOsha,
Title 8, section 5110.
ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE
Section 1 - General Provisions. The City and the Union recognize that early settlement of
grievance or appeal of disciplinary actions is essential to sound employee-employer
relations. The parties seek to establish a mutually satisfactory method for the settlement
of employee grievances, or appeal of disciplinary action, or Union grievances as provided
for below. In presenting a grievance or appeal of disciplinary action, the aggrieved and/or
his or her representative is assured freedom from restraint, interference, coercion,
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discrimination or reprisal. Release time for investigation and processing a grievance or
appeal of disciplinary action is designated in Article IV of this Memorandum of Agreement
(MOA).
Section 2 – Definitions.
a) Grievance means an unresolved complaint or dispute regarding the application or
interpretation of rules, regulations, policies, procedures, Memorandum of Agreement
or City ordinances of resolution, relating to terms or conditions of employment, wages
or fringe benefits, excluding however those provisions of this MOA which specifically
provide that the decision of any City official shall be final, the interpretation or
application of those provisions not being subject to the grievance or appeal of
disciplinary action procedure.
b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action
against an employee covered by this Memorandum of Agreement. Discipline is
defined as suspensions without pay, reductions in pay, demotion or discharge.
Reprimands, transfers, reassignments, layoffs, and negative comments in
performance evaluations are not considered discipline.
Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure.
a) An aggrieved employee may be represented by the Union or may represent
himself/herself in preparing and presenting a grievance or appeal of disciplinary
action at any level of review. Grievances or appeal of disciplinary action may also be
presented by a group of employees. No grievance or appeal of disciplinary action
settlement may be made in violation of an existing merit rule or memorandum of
agreement. The Union will be notified prior to the implementation of any settlement
made which affects the rights or conditions of other employees represented by the
Union. The Union and the Steward will be copied on all written representation unit
grievance or appeal of disciplinary action decisions.
b) An employee and the representative steward, if any, may use a reasonable amount of
work time so long as there is no disruption of work, in conferring about and presenting
a grievance or appeal of disciplinary action. Requests for release time to prepare
grievance or appeal of disciplinary action shall be made in accordance with the
provisions of Article IV, Section 3.
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c) Beginning with the third step of the grievance or appeal of disciplinary action
procedure, the Chief Steward or Alternate Chief Steward may assist in presenting a
grievance or appeal of disciplinary action and may be present at all Step III, and IV
grievance or appeal of disciplinary action hearings.
d) The time limits specified in this Article may be extended by mutual agreement in
writing of the aggrieved employee or the Union and the reviewer concerned.
e) Should a decision not be rendered within a stipulated time limit, the grievant may
immediately appeal to the next step.
f) The grievance or appeal of disciplinary action may be considered settled if the decision
of any step is not appealed within the specified time limit.
g) If appropriate, the aggrieved employee(s) or the Union and the department head may
mutually agree, in writing, to waive Step I and/or Step II of the grievance or appeal of
disciplinary action procedure.
h) Grievances or appeal of disciplinary action shall be made in writing and submitted on
forms provided by the City or on forms which are mutually agreeable to the City and
the Union. The written grievance or appeal of disciplinary action shall contain clear,
factual and concise language, including: (1) the name of the grievant; (2) a statement
of the facts upon which the grievance or appeal of disciplinary action is based,
including relevant dates, times and places; (3) specific provisions of this Agreement or
specific City rules, policies, or procedures which the grievance or appeal of disciplinary
action alleges has been violated; (4) a summary of any steps taken toward resolution;
and (5) the action the grievant believes will resolve the grievance or appeal of
disciplinary action.
i) Any retroactivity on monetary grievances or appeal of disciplinary action shall be
limited to the date of occurrence, except in no case will retroactivity be granted prior
to three months before the grievance or appeal of disciplinary action was filed in
writing.
j) If the grievance is filed by more than one employee in the bargaining unit, the Union
may, at its option, convert it to a Union grievance after Step II of the grievance
procedure. The Union may also file a grievance in those instances when, under this
Memorandum of Agreement, a Union right not directly related to an individual
employee becomes the subject of dispute. Union grievances shall comply with all of
the foregoing provisions and procedures.
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k) For purposes of time limits, “working days” are considered to be Monday through
Friday, exclusive of City holidays.
l) If a mutually agreed solution is reached during any step of this grievance or appeal of
disciplinary action procedure, the agreement shall be placed in writing and signed by
the City and the grievant or union.
m) Upon request of either party, meetings to discuss the grievance or appeal of
disciplinary action shall be held at any step in the grievance or appeal of disciplinary
action procedure.
n) The Parties may mutually agree in writing to an alternate method(s) of delivery for
any communication for any notices required pursuant to Article XIX, Grievance
Procedure, of a grievance or appeal of disciplinary action. Such agreement shall list
the designated representative(s) for each party and the appropriate contact
information for each Party, and describe the agreed-upon method(s) of
communication. All designated representatives shall be copied on any
communications. On all transmissions that are intended to conform to a time limit,
the sender shall retain proof that the transmission was sent within that limit (for
example, confirmation of electronic mail transmission or record of successful fax
transmission) in the sender’s file for production if a dispute arises over existence or
timing of the transmission. Either Party may designate new representatives or
terminate an alternate delivery agreement under this section by providing written
notice, which shall be effective immediately, to the other.
Section 4 - Grievance and Appeal Procedure.
Step I. Informal Discussion. Within fifteen (15) working days after the incident or
discovery of the incident on which the grievance or appeal of disciplinary action is based
the aggrieved employee shall present the grievance action to his or her immediate
supervisor and attempt to resolve the grievance through informal discussions. Every
attempt will be made to settle the issue at this level.
Step II. If the grievance is not resolved through the informal discussion in Step 1 or the
employee wishes to appeal disciplinary action taken against him/her in the case of a
grievance, the employee will reduce the grievance or appeal of disciplinary action to
writing and submit copies to the Department head or his or her designee within fifteen
(15) working days of the discussion with the immediate supervisor or within fifteen (15)
working days from the receipt of a final disciplinary action. The Department Head or
designee shall have fifteen (15) working days from the receipt of a written grievance or
appeal of disciplinary action to review the matter and prepare a written statement.
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Step III. If the grievance or appeal of disciplinary action is not resolved and/or the
aggrieved employee is not satisfied with the Step II decision, the grievant or disciplined
employee may appeal to the Human Resource Director or his or her designee in writing
within fifteen (15) working days of the receipt of the Department Head's response. The
written appeal to the Human Resources level shall include a copy of the original grievance
or appeal of disciplinary action, the Department Head’s decision at Step II, and a clear
statement of the reasons for appeal. Within fifteen (15) working days, after receiving the
written appeal, the Human Resource Director shall review the matter and prepare a
written statement. If a mutually agreed solution is reached during this process the
agreement shall be placed in writing and signed.
Step IV. If the grievance or appeal of disciplinary action is not resolved at Step III, the
aggrieved employee may choose between final and binding resolution of the grievance or
appeal of disciplinary action through appeal to the City Manager or through appeal to
final and binding arbitration. For the term of this Memorandum of Agreement, appeals to
final and binding arbitration may be processed only with Union approval. All Step IV
appeals must be filed in writing at the Human Resources Department within fifteen (15)
working days of receipt of the Human Resource Director’s decision at Step 3.
If the grievant or appellant elects final and binding resolution by the City Manager, the
City Manager will choose the methods he or she considers appropriate to review and
settle the grievance or appeal of disciplinary action. The City Manager shall render a
written decision to all parties directly involved within fifteen (15) working days after
receiving the grievant/appellant’s appeal.
If the grievant/appellant elects final and binding arbitration in accordance with this
provision, the parties shall mutually select an arbitrator within 90 days from the date of
receipt of the written request for appeal. In the event the parties cannot agree on an
arbitrator, they shall mutually request a panel of five arbitrators from the California State
Conciliation Service or from the American Arbitration Association if either party objects
to the State Conciliation Service, and select an arbitrator by the alternate strike method.
The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine
compliance with the provisions of this Memorandum of Agreement and such Merit
System Rules, regulations, policies, procedures, City ordinances, resolutions relating to
terms or conditions of employment, wages or fringe benefits, as may hereafter be in
effect in the City insofar as may be necessary to the determination of grievances or appeal
of disciplinary action appealed to the arbitrator. The arbitrator shall be without power to
make any decision contrary to, or inconsistent with or modifying in any way, the terms of
this Memorandum Of Agreement. The arbitrator shall be without authority to require
the City to delegate or relinquish any powers which by State law or City Charter the City
cannot delegate or relinquish. Where either party seeks arbitration and the other party
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claims the matter is not subject to the arbitration provisions of this Memorandum of
Agreement, the issue of arbitrability shall first be decided by the arbitrator using the
standards and criteria set forth in Article XX and without regard to the merits of the
grievance or appeal of disciplinary action. If the issue is held to be arbitrable, the
arbitration proceedings will be recessed for up to five working days during which the
parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator
will resume the hearing and hear and resolve the issue on the merits. Copies of the
arbitrator's decision shall be submitted to the City, the aggrieved employee and the
Union. All direct costs emanating from the arbitration procedure shall be shared equally
by the City and the aggrieved employee or the Union.
ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION
The City has the right to discipline, demote, or discharge employees for cause. Non-
probationary employees whose work or conduct is unsatisfactory but not sufficiently
deficient to warrant discipline, demotion, or discharge will be given a written notification
of unsatisfactory work or conduct and an opportunity to improve. Failure to correct
deficiencies and improve to meet standards may result in discipline, demotion, or
discharge. Discipline is defined as suspensions without pay, reduction in pay, demotion,
or discharge. Coaching, mentoring, verbal counseling, written counseling, reprimands,
transfers, reassignments, layoffs, and negative comments in performance evaluations are
not discipline and shall not be subject to the requirements of this Article.
Section 1 - Preliminary Notice of Discipline.
Prior to imposing disciplinary action, a supervisor shall provide an employee with
preliminary written notice of the proposed disciplinary action. The notice of proposed
disciplinary action must be in writing and served on the employee in person or by
registered mail or Fed-Ex. The notice of disciplinary action shall include:
a) Statement of the violations upon which the disciplinary action is based;
b) Intended effective date of the action;
c) Statement of the cause thereof;
d) Statement in ordinary and concise language of the act or the omissions upon which
the causes are based;
e) Copies of any documents or other written materials upon which the disciplinary action
was fully or in part based.
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f) Statement advising the employee of his/her right to appeal from such action, and the
right to union representation and a statement that in order to exercise your rights to
union representation the employee may contact their SEIU representative or their
steward.
g) The date and location of the Skelly meeting and the name of the Skelly Officer
Section 2 - Skelly Meeting. The employee shall have the right to respond informally to
the charges either verbally or in writing before the discipline is imposed. The employee
shall have fifteen (15) working days from receipt of the notice to request this pre-
disciplinary administrative review. The employee may request a reasonable extension of
the time to respond for justifiable reasons. The Skelly meeting to listen to the verbal
responses shall be scheduled with a City representative who is not the manager
recommending the discipline (the “Skelly Officer”). The Skelly Officer shall render a final
written decision (the “post-Skelly decision”) within fifteen (15) working days of receiving
the employee’s response, if any, and shall deliver the post-Skelly decision to the employee
by personal delivery or registered mail. The Skelly Officer may sustain, modify, or
overturn the recommended disciplinary action. If the Skelly Officer sustains or modifies
the disciplinary action, the action may be imposed after the post-Skelly decision is
delivered to the employee.
Section 3 – Appeals. Appeals of disciplinary action should be processed through the
procedures outlined in Steps 2-4 of the grievance appeal of disciplinary action procedure
(Article XIX, Section 4.)
ARTICLE XXI - NO ABROGATION OF RIGHTS
The parties acknowledge that Management rights as indicated in Section 1207D of the
Merit System Rules and Regulations and all applicable State laws are neither abrogated
nor made subject to negotiation by adoption of this MOA.
ARTICLE XXII - OUTSIDE EMPLOYMENT
The provisions of City of Palo Alto Policy and Procedure 2-05: Outside Employment and
Article 4.7 of the Government Code of the State of California (Gov’t, Code § 1125 – 1129)
will govern the determination of incompatible outside employment.
ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS
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The City agrees that it will not lock out employees, and the Union agrees that it will not
engage in any concerted work stoppage or slowdown during the term of this MOA. An
employee shall not have the right to recognize the picket line of a labor organization when
performing duties of an emergency nature.
ARTICLE XXIV - PROVISIONS OF THE LAW
Section 1 - Conformity and Separability of Provisions. This Memorandum of Agreement
is subject to all current and future applicable Federal and State laws and Federal and State
regulations and the Charter of the City of Palo Alto and the Constitution of the State of
California. Should any of the provisions herein contained be rendered or declared invalid
by reason of any existing State or Federal legislation, such invalidation of such part or
portion of this Memorandum of Agreement shall not invalidate the remaining portions
hereof, and they shall remain in full force and effect, insofar as such remaining portions
are severable.
Section 2 - Merit Rules and Regulations. This Memorandum of Agreement shall become
a part of the City of Palo Alto Merit Rules and Regulations applying to employees assigned
to classifications in the SEIU unit. As applied to employees assigned to the SEIU unit, this
Memorandum of Agreement shall prevail over any conflicting Merit Rules and
Regulations.
Section 3 - Resolution. The City and the Union agree by signing this Memorandum of
Agreement that the wages, hours, rights and working conditions contained herein shall
be continued in full force during the term of this Memorandum of Agreement except as
otherwise provided for in the Memorandum of Agreement and shall be binding on both
the City and the Union upon ratification by the Council of the City of Palo Alto and upon
ratification by Union membership.
ARTICLE XXV - TUITION REIMBURSEMENT
The City shall fund a Tuition and Student Loan Reimbursement Program for use by
employees in the unit. This program will provide reimbursement to eligible SEIU
members for successful completion of undergraduate, graduate level courses, collegiate
level certification courses or any other pre-approved training related to employment
opportunities with the City.
The City will fund up to $100,000 for each fiscal year of the term of this MOA. The
maximum reimbursement will be one thousand five hundred dollars ($1,500) total per
employee for each fiscal year of this MOA. Monies expended on this program will be
subject to appropriate IRS regulations. Requests for reimbursement are on a first come
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first serve basis and must be submitted within thirty (30) calendar days of the end of the
fiscal year to be allocated to the fiscal year.
The Tuition Reimbursement will be provided if the following conditions are met:
a. Courses, classes or trainings must be pre-approved as job related by the division
head or designee prior to the start date. Employees may appeal a denial to the
Human Resources Director or designee within 5 working days of receipt of denial,
whose decision shall be final.
b. Eligible expenses include required textbooks, tuition, fees, lab fees and
equipment, but will not include parking fees or health fees related to enrollment.
c. Employees must attain a final grade of “C” or better for both undergraduate and
graduate work. Courses providing a “pass/fail” must achieve a “pass” to qualify
for reimbursement. Ungraded courses, classes or trainings will be reimbursed
based on proof of successful completion.
d. Requests for reimbursement shall be submitted in accordance with the
procedures developed by the City. A request for reimbursement will not be
considered submitted until it includes the relevant receipts and proof that the
necessary grade or successful completion was earned.
e. Courses must be taken on the employee’s off duty hours, unless prior approval is
received from the employee’s supervisor.
Student Loan Reimbursement conditions:
a. Employees must have an active student loan in good standing.
b. Employees must successfully complete the secondary education with which the
student loan was incurred, and must provide proof of successful graduation or
completion.
c. Requests for reimbursement shall be submitted in accordance with the
procedures developed by the City. A request for reimbursement will not be
considered submitted until it includes proof of payment towards the employee’s
student loan within the eligible fiscal year.
ARTICLE XXVI - COST REDUCTION PROGRAMS
During the term of this agreement, the Union will aggressively assist Management in
developing cost reduction programs. Such programs may include voluntary reduced
hours/pay after this concept is studied by Management, and with such application as may
be approved by Management.
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ARTICLE XXVII – TERM
The Term of this Memorandum of Agreement shall commence upon adoption by the City
Council on January 1, 2019on January 30, 2023 and shall expire on December 31, 20241.
The Parties agree that they will commence negotiations over a successor to this
Memorandum of Agreement no later than one hundred eighty (180) days (July 42, 20241)
before its expiration. If, at the time this Memorandum of Agreement would otherwise
expire, the parties are continuing to negotiate a successor Memorandum of Agreement,
upon mutual agreement the terms and conditions of this Memorandum will continue in
effect.
EXECUTED:
FOR LOCAL 521, SEIU, CTW: FOR CITY OF PALO ALTO:
_______________________________ _______________________________
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APPENDIX A
The salary rates of bargaining unit classifications will be as set forth in Appendix A of this
MOA
Base SalaryCompensation:
a) General Salary Increase: Effective the first full pay period including the adoption of the
MOA, the salary ranges of all represented classifications will be increased by four percent
(4.0%).
b) Market Adjustment: Effective the first full pay period including the adoption of the
MOA, the salary ranges of all represented classifications will be increased in an amount
sufficient to bring them to 75th percentile of market median before application of the
General Salary Increase as determined by the City’s market study.
c) One-time Lump Sum Bonus: One-time discretionary cash payment of $1,200 for each
for regular employee who is a member of the bargaining unit and in paid status in the first
full pay period including Council adoption of this MOA (prorated for part time employees).
Parties understand this to be non-pensionable compensation and excludable from regular
rate of pay.
d) General Salary Increase: Effective the first full pay period following January 1, 2024 or
the adoption of the MOA whichever is later, salary ranges of all represented classifications
will be increased by four percent (4.0%).
Effective the first full pay period following adoption by Council (anticipated Council
meeting April 22, 2019, PP10), employees in this unit shall receive a 3.5% salary increase.
Effective the first full pay period including December 1, 2019 (PP25), employees in this
unit shall receive a 3.5% salary increase.
Effective the first full pay period including December 1, 2020, employees in this unit shall
receive a 3.0% salary increase.
Recruitment and Retention
To address current market conditions and specific benefits provided by competing
employers to employees in the electrical lineperson category, the parties agree to the
following:
1) Standby Compensation. Employees in the Lineperson and Water/Gas/Wastewater Job
Families who are assigned to standby duty shall be compensated at the daily rates
established below:
Monday through Friday two (2) hours at their straight time regular rate of pay
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Saturday, Sunday, Holidays three (3) hours at their straight time regular rate of pay
2) Overtime Compensation. Employees in the Electrical Lineperson/Cable Splicer job
family will be paid two times the employees applicable salary for all overtime work.
Recruitment and Retention
For job families below median after receiving the 3.5% salary increase upon Council
adoption of the contract listed above, the City will provide market adjustments to market
median. Job Families specified below are exempt from this section’s market adjustments.
Effective the first full pay period following adoption of this contract by Council, the
following additional adjustments will be made:
a) Public Safety Dispatch (Job Family) will receive an additional 5% salary effective
the first full pay period following adoption of this contract by Council for a total of
an 8.5% salary increase.
b) Lineperson Cable Splicer Job family (excluding Lineperson job series, Compliance
Tech job series, Overhead Underground Troubleman, and Utility Systems
Operator series) will receive an additional 10% salary effective the first full pay
period following adoption of this contract by Council for a total of a 13.5% salary
increase.
c) Lineperson job series, Compliance Tech job series, Overhead Underground
Troubleman, and Utility Systems Operator series will receive an additional 20%
salary effective the first full pay period following adoption of this contract by
Council for a total of a 23.5% salary increase.
Resolution of Charges, Grievances, and meet and confers
The Union agrees to withdraw the following:
• Grievance # 77457-2018- Comp Time
• Grievance # 76887-2017- Schedules
• ULP No. SF-CE-1649-M
• Resolution of Lab Tech Job Description meet and confer
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APPENDIX B. APPRENTICESHIPS
Note: Employees hired into a Lineperson Apprenticeship position on or before April 11,
2016 will continue to progress through the Apprenticeship steps and into the Lineperson
journey rate at the same intervals as existed before April 11, 2016 in the Apprenticeship
Program.
Substation Electrician, Street Light /Traffic Signal / Fiber Technician, Lineperson/Cable
Splicer APPRENTICE:
Upon completion, may lead to Journey level position. The Utilities Department has
formalized the Apprenticeship programs in the Electric Section to develop journey level
electricians/technicians and lineperson/cable splicers.
The following are basic concepts/principles to be incorporated:
1. The administration and operation of the Apprenticeship programs will be managed by
the Apprenticeship Committee, which will be selected by the Manager of Electric
Operations and comprised of two (2) bargaining unit members designated by Local 521
and two (2) Utility Supervisors and the Manager of Electric Operations. The Manager of
Electric Operations will maintain oversight of the program. The Apprenticeship Program
will be subject to review and approval by the State of California Department of Industrial
Relations Division of Apprenticeship Standards.
2. The journey level position will not be a promotional opportunity for anyone other than
the apprentice under filling the position, as long as that apprentice is successfully
progressing through the program.
3. Employees within Electric Operations, who qualify, will be given first consideration for
the apprentice position prior to other City classifications or recruiting from outside the
City.
4. A letter of agreement will be entered into by the apprentice and the City identifying
the terms and conditions of the program.
5. The program will normally require eight thousand (8000) work hours (48 months) to
complete for Lineperson Cable Splicer and six thousand (6000) work hours (36 months)
for Substation Electrician, Street Light /Traffic Signal / Fiber Technician positions.
6. Normal progress through the program will be in periodic increments with formal
evaluations.
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7. The salary steps for the Substation Electrician, Street Light /Traffic Signal / Fiber
Technician and Lineperson Cable Splicer apprenticeships are outlined in the State of
California Department of Industrial Relations Division of Apprenticeship Standards.
Employees hired into a Lineperson/Cable Splicer Apprenticeship position will be paid at
step 1 of the Lineperson/Cable Splicer Apprentice step range. Upon completion of all
course work requirements outlined in the apprentice syllabus, the employee will progress
as follows:
Month Step
Step
Intervals
1-12 1 12 months
13-24 2 12 months
25-36 3 12 months
37-42 4 6 months
43-48 5 6 months
Upon successful completion of the fourth year following commencement of the
Apprenticeship, the employee will be reclassified/progressed to Lineperson / Cable
splicer Journey Level and paid at the top step (step 5) of the journeyman rate. In any case,
successful completion of the program and movement into the Lineperson Cable Splicer
journey level classification will not transpire until the employee has fulfilled all of the
requirements outlined in the program content description and received the
recommendation of the Apprenticeship Committee.
Employees hired into a Substation Electrician or Street Light /Traffic Signal / Fiber
Technician Apprenticeship position will be paid at step 1 of the Substation Electrician or
Street Light /Traffic Signal / Fiber Technician step range. Upon completion of all
coursework requirements outlined in the apprentice syllabus, the employee will progress
as follows:
Month Step
1-6 1
7-12 2
13-18 3
19-24 4
25-36 5
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Upon successful completion of the Apprenticeship, the employee will be reclassified /
progressed to Substation Electrician or Street Light /Traffic Signal / Fiber Technician
Journey Level and paid at the fifth step (step 5) of the journeyman rate.
In any case, successful completion of the program and movement into the Substation
Electrician or Street Light /Traffic Signal / Fiber Technician journey Level classification will
not transpire until the employee has fulfilled all of the requirements outlined in the
program content description and received the recommendation of the Apprenticeship
Committee.
8. Should an apprentice prove deficient in progressing through either the coursework or
on-the-job training portion of an apprenticeship step, the apprentice shall not progress
to the next higher step nor shall the apprentice receive the step increase in wages. The
apprentice as described above may at the discretion of the appropriate Division Manager,
be granted a three (3) month extension to eliminate the deficiency and be allowed to
progress to the next higher step in the apprenticeship and receive the step increase in
wages.
*Note: A maximum of two (2) time extensions may be granted during the term of the
apprenticeship. Any apprentice that is removed due to documented deficiency shall have
their employment terminated.
9. The City and the Union agree to review or develop job descriptions to better reflect the
qualification necessary to attract and retain successful candidates for this program. It is
further agreed that the job descriptions will not warrant additional compensation.
10. Training will consist of on-the-job (OJT) and required training as outlined in the
program, Training costs will be funded by departmental funds and employees will be
compensated their normal wages while attending required training. Personal time spent
in off-the-job training and/or study will not be compensated.
11. The apprentice will be under the continuing guidance of an appropriately qualified
journey level person during OJT. Such journey level persons will be assigned by
Management from among volunteers who will not receive additional compensation.
12. Qualifications/progress will be verified by appropriately kept records.
13. Unless specifically stated otherwise, regular City personnel policies and MOA
provisions will apply to the apprenticeship program.
14. This program may become a conceptual model for apprenticeships in other divisions
or departments.
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APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION
Section 1. Exceptions to Standard Workday or Work Week for SEIU Representation Unit:
Library Department
Coordinator, Library Programs
Librarian
Senior Librarian
Library Specialist
Library Associate
In a given workweek, staff may work three eight-hour days, one seven-hour day, and one
nine-hour day. On a voluntary basis, staff may work five non-consecutive days within
seven.
Section 2. Rules Governing Flexible Work Hours.
These rules and procedures are established pursuant to Article VI, Section 8, and are an
application of Article VIII, Sections 1, 2, and 3 of the Memorandum of Agreement to the
classifications of Coordinator, Recreation Programs; Producer, Arts & Sciences Programs;
Program Assistant; Theater Specialist, in the Recreation and Arts & Sciences Divisions of
the Community Services Department, and the classifications of Associate Planner,
Building Planning Technician, CDBG Coordinator, Engineer, , Planner, and Senior Planner
in the Planning and Community Environment Department.
a) Flexible Work Schedule
1. Employees in the covered classification shall be permitted to arrange flexible work
schedules with division approval, providing that such schedules shall include forty
(40) hours per week.
2. Standard daily office hours are typically Monday through Friday, between the
hours of 8:00 a.m. and 6:00 p.m. as determined by the Department. Flexible hours
may occur for supervision of, and/or attendance at, evening programs, meetings,
weekend events, or other programs.
b) Overtime
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1. Emergency call-out work shall be defined as overtime work and compensated per
standard City practices.
2. If the need arises for overtime work due to an unusual circumstance calling for
extra hours or due to a special event, compensation shall be allowed with prior
approval of the Director of Recreation, Director of Arts and Sciences, or the
Director of Planning and Community Environment, and shall be compensated for,
as spelled out in the Memorandum of Agreement.
Section 3. 2080 Plan
a) Either the Union or the City may withdraw from the Plan by giving the other party 30
calendar days written notice. In the event of termination of the plan, the covered
classifications will return to an 8-hour or other authorized workday as provided under
Article VIII, Section 1, of this Memorandum of Agreement.
b) Provisions of the 2080 Plan are as follows. To the extent that these provisions are in
conflict with other provisions of the Memorandum of Agreement, these provisions
will prevail.
c) The 2080 Plan or “12 hours per Shift Schedule” is an authorized work schedule for the
Utility Systems Operators and Water Quality Control Plant Operators.
2080 Plan
Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For
scheduling purposes, and subject to the Merit System Rules and Regulations, the
employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks
at the normal number of hours worked per week. Any employee covered by the Plan who
works up to 2,080 hours per year is compensated for all hours worked at the agreed upon
rate. The City must pay overtime for all hours worked in excess of 12 in any workday, 56
hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of
overtime will be at time and one-half the employee's regular rate of pay (or current
contract overtime rate, if different).
Shift Schedule
The shift schedules combined must provide full 24-hour, seven (7) days per week
coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule
shall be a rotating schedule. The Utility Systems Operators’ shift schedule will reach the
equivalent of 40 hours per week in five weeks. The 12-hour shifts begin at 7:00 a.m. and
7:00 p.m. The Relief shift shall begin at 7:00 a.m. and end at 3:00 p.m. with lunch taken
while working. The shift schedule shall be rotating schedule. The Water Quality Control
Plant Operators’ shift schedule will reach the equivalent of 40 hours per week in two
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weeks. There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth
shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon on the fourth
day.
Pay Period
Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay
periods and workweek for the Water Quality Control Plan Operators will begin Saturday
at 6:01 a.m.
Wages
Wages will be based on the City of Palo Alto Compensation Plan, which may vary from
time to time as mutually agreed upon.
Overtime
Under the 2080 Plan, the City will pay overtime for all hours worked in excess of 12 in any
workday, 56 in any work week, or 2080 in 52 weeks, as the case may be.
Overtime will also be paid for hours worked when an employee is called in to work other
than their regularly-scheduled shift. The overtime rate of pay will be one and one-half
times (or current contract overtime rate, if different) of the employee's regular rate of
pay. All overtime worked will be paid to the employee. No compensatory time off for
overtime will be allowed with the exception of Water Quality Control Operations.
Relief Employees
This provision only applies to the Utility Systems Operators. The five Operators share the
relief week evenly as they rotate through the five week cycle. Relief employee(s) will be
used within the 12-hours shift schedule only when relieving for the System Operators on
shift. When not relieving, they will work four eight-hour shifts.
When a vacation relief week results in a 36-hour or 48-hour week, the operator working
said week shall be paid at one and one-half (1½) time their normal rate of pay for hours
that exceed thirty two (32) hours.
Relief Duties
This provision only applies to the Utility Systems Operators. An employee who is
scheduled to perform relief duties shall be available for duty in revolving shifts on any day
of the week and may be assigned for relief in any shift without advance notice. Relief
employees will be paid standby pay during their relief week.
Standby
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This provision only applies to the Utility Systems Operators. An employee who is on relief
duties is covering standby, and will be compensated according to Article VIII, Section 7 (a)
of the Memorandum of Agreement. If the relief employee is on vacation or otherwise
unavailable for relief duties, the employee(s) on their three or four-day off period will be
first on standby.
Management reserves the right to utilize Management personnel as Operators on a short-
term, as needed basis, if no Operator is available.
Filling Vacant Positions
If the City elects to fill a vacancy other than by reassignment of the shift or the utilization
of prior or succeeding shift personnel, the following procedure shall be used:
Employees will be called according to their position on the Pre-arranged Overtime List
(POL), with the person with the lowest balance being the first one called. The purpose of
the POL is to fairly distribute the available opportunities. If an employee turns down the
overtime, that amount will be added to the employee's POL balance. If an employee
cannot be contacted for such assignment, the employee will not have any overtime added
to their POL account balance.
Shift Changes
Shift changes caused by scheduled time off or sick leave will not be considered an official
change in shift.
Maximum Hours Worked
No employee shall work more than 18 consecutive hours.
Rest Period
In a 12-hour workday, employees are entitled to a rest period of 8 consecutive hours after
working 6 hours overtime during the 12 hours immediately before the regularly scheduled
hours of work on a workday or non-workday.
Holidays
Employees who begin their day or night shift on an observed holiday will receive overtime
premium in accordance with Article X, Section 3 of the Memorandum of Agreement.
Employees who work a schedule where a regular day off falls on a holiday will be paid for
the hours they would have normally worked on that day.
Employees working for Water Quality Control Operations may accrue holiday time
convertible to vacation.
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Sick Leave
Sick leave will be earned as indicated in Article XII, Section 1(a) of this MOA, and shall be
charged in increments of one hour.
Floating Days Off
Floating holidays will be made available to eligible employees and used pursuant to Article
X, Section 5.
Vacation
An employee's total entitlement will be converted to hours (eight hours = one day). A
workday will consist of 12 hours, and employees taking vacation will be charged 12 hours
of use. Two week notification is required for any scheduled time off. Only one person at
a time may be scheduled off.
It is the intention of the City that vacation be taken in units of one work week; however,
with approval of his/her supervisor, an employee may use his/her accrued vacation in
units of less than one work week.
Meals
Shift employees shall be permitted to eat their meals during work hours and shall not be
allowed additional time, therefore at City expense.
Shift Premium
Shift premium will be handled in accordance with the current Memorandum of
Agreement between the City and the Union, Article VIII, Section 8.
Jury Duty
Time off for jury duty which occurs on a regularly scheduled workday will result in the
employee being credited with up to 12 hours worked, for pay purposes. Employees called
for jury duty who are working the evening portion of the 12-hour schedule will be placed,
for payroll and scheduling purposes, on the day shift for each scheduled day such
employee is required to report for jury duty, and will not be required to work the evening
12-hour shift before or after being required to report for jury duty. However, such
employee shall return to work on the day shift upon being released from such duty if
there are at least four hours remaining prior to the end of the day shift. All other
provisions of Article XII, Section 5, of the current Memorandum of Agreement shall apply.
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APPENDIX D. IN-LIEU PREMIUMS
1. For employees in the following operations assigned to work schedules other than
Monday through Friday, the calendar day will be considered the holiday for premium
pay of in-lieu scheduling purposes:
Communications
Water Quality Control
Animal Control
Golf Course
Utilities Services
Landfill
Open Space
Electric System Operator
If December 24 and 31 fall on Sunday, then the preceding Friday will be designated
for purposes of excused time off, except in the case of Community Services staff who
may be scheduled to work on Saturday, in which case Saturday will be designated for
purposes of excused time off. For Open Space and Library personnel, designation of
excused time off will be based on Park and Library schedules and employee
preference.
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APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS
1. Promotional opportunities within the Communications Division will be carried out in
compliance with procedures set forth in Article VI, Section 5, of the Memorandum of
Agreement between the City and SEIU Local 521, except that:
a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined
as Division Seniority.
• Division Seniority, for the purposes of shift scheduling, vacation scheduling and
promotional opportunities will be calculated from an employee’s first day of
employment in the division. Any unpaid leave that is not protected under FMLA
or CFRA will not count as service days towards seniority, unpaid furlough, and
unpaid closure time. Other areas of seniority not mentioned in this article will
follow Article 6, Section 5, e “Seniority” of the Memorandum of Agreement
between SEIU 521 and the City of Palo Alto.
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APPENDIX F. RECOVERY OF CITY TRAINING COSTS
In recognition of the extended training provided to affected employees, the Parties agree
that the City may recover up to thirty percent (30%) of its cost for training employees,
hired on or after July 1, 2012, in all Utilities Apprentice classifications and in the Park
Ranger Apprentice classifications if the employee voluntarily terminates from the City or
abandons his or her City employment before completing three years of City service in the
Journeyman classification or Park Ranger classification. The amount recovered shall
reasonably reflect the City’s cost for the training, but will exclude all wage or benefit costs,
and will be prorated to reflect the portion of the thirty-six (36) month post-training service
period remaining at the time of the employee’s termination.
As of July 1, 2015 thirty percent (30%) of the City’s average cost for training employees
in:
• Lineperson/Cable Splicer Apprenticeship Program is $5600.00
• For the Field Service Representative, the City’s two year training cost is $ 6,000
• For Substation Electrician Apprenticeship Program is $4800.00
• For Street Lighting / Traffic Signals / fiber Apprentice program is: $1800.00
• For Park Ranger, the City’s two-year training cost is:$6,300
The employee will be required to sign an agreement providing for reimbursement to the
City as provided above on the form attached hereto as Appendix H.
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APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT
This Agreement is entered into between ___________ (“Employee”) and the City of Palo
Alto (the “City”), as authorized by the Memorandum of Agreement between the City
and SEIU Local 521.
RECITALS
A. The purpose of this Agreement is to limit the City’s risk that it will invest
substantial sums in the Employee’s training but potentially lose the value of that
training if the employee terminates without rendering substantial journey level
service to the City after training.
B. The City may require reimbursement from Employee of thirty percent (30%) of the
total training cost for _______position, subject to abatement when specified
service requirements are met.
C. On or about (date) City extended to Employee a conditional offer of
employment in the position of _________(position), subject to Employee’s
agreement to complete the training necessary to perform the duties of _______
(position), under the terms of the training program. The ______(position)
requires [description of training], which as of July 1, 2015 cost the City
approximately $ over the course of the training.
D. This agreement sets forth the Employee’s agreement to reimburse the City for the
City’s investment in the Employee’s training if the employee voluntarily
terminates from the City prior to the completion of thirty-six months of service
following successful completion of the training.
THEREFORE, the Parties agree to the terms set forth below:
By signing this agreement, the Employee understands that s/he is bound by agrees to the
following terms:
1. ____________________________________ (hereafter “Employee”) agrees that
in training Employee for the position of
_________________________________________, the City of Palo Alto
(hereafter “City”) incurs a total cost of $___________.
2. Employee agrees that amounts recoverable under this agreement do not include
Employee wage or benefit costs.
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3. Employee agrees that in the event he/she voluntarily terminates or abandons his
or her employment from the City prior to the completion of thirty-six (36) months
of service following the successful completion of his or her apprenticeship,
he/she will repay the City for the cost of training noted above, prorated to reflect
the months of service the Employee has completed following successful
completion of their training. Employee agrees that for the purpose of this
agreement, “time of service” shall begin on the date following the successful
completion of the Employee’s training.
4. Employee agrees that the aggregate amount of repayment due will be determined
based upon the attached proration table.
5. Employee agrees that repayment shall be due and made in equal monthly
installments over the twelve (12) months immediately following termination, on
the first of each such month.
6. If Employee does not fully reimburse the City for the amounts due when due, the
entire aggregate amount owed will become immediately due, the employee will
be deemed in default on this agreement and the City may initiate legal
proceedings to collect said amounts. Employee will be responsible for all
reasonable collection costs and attorney fees incurred by the City in undertaking
such proceedings. The City may elect to forbear taking such action to allow
Employee the opportunity to become current on the debt. Such forbearance will
not alter the Employee’s default status or adversely affecting the City’s right to
later initiate proceedings for recovery pursuant to this Agreement.
7. This agreement shall be effective on the date listed below.
DATED: ___________________ ______________________________________
Employee
______________________________________
Title, City of Palo Alto
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CITY OF PALO ALTO
Memorandum of Agreement City of Palo Alto and Service Employees International Union (SEIU) Local 521
January 30, 2023 – December 31, 2024
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TABLE OF CONTENTS
PREAMBLE ....................................................................................................................... 6
ARTICLE I – RECOGNITION .......................................................................................... 6
Section 1 - Recognition. .................................................................................................. 6
Section 2 - Protection of Unit. ........................................................................................ 6
ARTICLE II - NO DISCRIMINATION............................................................................. 7
Section 1 – Discrimination.............................................................................................. 7
Section 2 - Right to Join the Union. ................................................................................ 7
ARTICLE III – UNION MEMBERSHIP ........................................................................... 7
Section 1 - Notice............................................................................................................ 7
Section 2 – Payroll Deductions ....................................................................................... 8
Section 3. Certification of Union Membership. .............................................................. 8
Section 4. Indemnification, Defense and Hold Harmless ............................................... 9
Section 5 - Documentation.............................................................................................. 9
Section 5 - Bulletin Boards and Departmental Mail. ...................................................... 9
Section 6 - Access to Union Representatives. .............................................................. 10
Section 7 - Meeting Places. ........................................................................................... 10
Section 8 - Notification to the Union. ........................................................................... 10
Section 9 - Union Logo ................................................................................................. 10
Section 10 - Public Notice. ........................................................................................... 11
Section 11 - Use of Agency Reports. ............................................................................ 11
Section 12 - Job Postings .............................................................................................. 11
Section 13 - Contracting Out ........................................................................................ 11
ARTICLE IV – STEWARDS AND OFFICERS.............................................................. 11
Section 1 - Union Officers. ........................................................................................... 11
Section 2 - Number of Stewards. .................................................................................. 11
Section 3 - Release Time. ............................................................................................. 12
Section 4 - Advance Notification Before Leaving Work Location. ............................. 12
Section 5 – Release Time .............................................................................................. 12
Section 6 - Designated Union Space. ............................................................................ 13
Section 7 - Union Officers and Release Time. ............................................................. 13
ARTICLE V - REDUCTION IN FORCE ........................................................................ 13
Section 1 - Attrition. ..................................................................................................... 13
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Section 2 - Advance Notice. ......................................................................................... 13
Section 3 - Order of Layoff. .......................................................................................... 13
Section 4 - Seniority/Bumping Rights. ......................................................................... 14
Section 5 - Re-Employment List................................................................................... 14
Section 6 - Sick Leave Balances. .................................................................................. 14
Section 7 - Hourly Employees Performing Duties. ...................................................... 14
ARTICLE VI - PERSONNEL ACTIONS ........................................................................ 15
Section 1 - Probation. .................................................................................................... 15
Section 2 - Personnel Evaluations................................................................................. 15
Section 3 - Personnel Files. ........................................................................................... 15
Section 4 - Release of Information. .............................................................................. 16
Section 5 - Promotional Opportunities. ........................................................................ 16
Section 6 - Rights. ......................................................................................................... 18
Section 7 - Apprentice Positions. .................................................................................. 18
Section 8 - Rotation. ..................................................................................................... 19
ARTICLE VII - PAY RATES AND PRACTICES .......................................................... 19
Section 1 - Salary. ......................................................................................................... 19
Section 2 - Step Increases. ............................................................................................ 19
Section 3 - Working Out of Classification .................................................................... 19
Section 4 - Classification Changes. .............................................................................. 20
Section 5 - Reclassification Requests. .......................................................................... 20
Section 6 - Assignment to a Lead Position. .................................................................. 21
Section 7 - Total Compensation and Survey Database. ................................................ 21
Section 8 - Direct Deposit ............................................................................................. 22
ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY ......................... 22
Section 1 - Work Week and Work Day. ....................................................................... 22
Section 2 - Overtime Work. .......................................................................................... 23
Section 3 - Work Shifts. ................................................................................................ 25
Section 4 - City-Paid Meals. ......................................................................................... 25
Section 5 - Break Periods .............................................................................................. 27
Section 6 - Clean-Up Time ........................................................................................... 27
Section 7 - Standby Pay, Call-Out Pay ......................................................................... 27
Section 8 - Night Shift Premium. .................................................................................. 27
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Section 9 - Bilingual Premium ...................................................................................... 28
Section 10 - Communications Training Officer (CTO) Compensation ........................ 28
ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES ........................................... 28
Section 1 - Uniforms. .................................................................................................... 28
Section 2 - Tool Allowance. ......................................................................................... 32
Section 3 - Shoe Allowance. ......................................................................................... 32
Section 4 – Certifications. ............................................................................................. 32
Section 5 - Weather Protection. .................................................................................... 37
ARTICLE X - HOLIDAYS .............................................................................................. 37
Section 1 - Fixed Holidays. ........................................................................................... 37
Section 2 - Pay for Fixed Holidays. .............................................................................. 38
Section 3 - Work on Fixed Holidays............................................................................. 38
Section 4 - Variations in Work Week. .......................................................................... 38
Section 5 - Floating Days Off ....................................................................................... 39
ARTICLE XI - VACATIONS .......................................................................................... 39
Section 1 - Vacation Accruals. ...................................................................................... 39
Section 2 - Holiday Falling During Vacation. .............................................................. 40
Section 3 - Illness During Vacation. ............................................................................. 40
Section 4 - Accrued Vacation Pay for Deceased Employees. ...................................... 40
Section 5 - Effect of Extended Military Leave. ............................................................ 40
Section 6 - Vacation at Termination. ............................................................................ 41
Section 7 - Vacation Cash Out. ..................................................................................... 41
ARTICLE XII - LEAVE PROVISIONS .......................................................................... 41
Section 1 - Sick Leave. ................................................................................................. 41
Section 2 - Bereavement Leave. ................................................................................... 43
Section 3 - Military Leave. ........................................................................................... 43
Section 4 - Leave Without Pay. .................................................................................... 43
Section 5 - Jury Duty and Subpoenas ........................................................................... 44
Section 6 - Time Off to Vote. ....................................................................................... 44
Section 7 - Disapproval of Leave of Absence. ............................................................. 44
Section 8 - Personal Business Leave Chargeable to Sick Leave. ................................. 44
Section 9 - Return to Assignment. ................................................................................ 44
ARTICLE XIII - WORKERS' COMPENSATION INSURANCE .................................. 45
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Section 1 - Industrial Temporary Disability. ................................................................ 45
Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. 45
ARTICLE XIV - BENEFIT PROGRAMS ....................................................................... 45
Section 1 - Health Plan. ................................................................................................ 45
Section 2 - Dental Plan. ................................................................................................ 48
Section 3 - Vision Care ................................................................................................. 49
Section 4 - Life Insurance ............................................................................................. 49
Section 5 – Long Term Disability Insurance ................................................................ 49
Section 6 - Effective Date of Coverage for New Employees ....................................... 49
Section 7 - Dual Coverage ............................................................................................ 49
Section 8 - Deferred Compensation .............................................................................. 50
Section 9 – Dependent Care Assistance Program and Medical Flexible Spending
Accounts. ...................................................................................................................... 50
Section 10 - Training Programs. .................................................................................... 50
ARTICLE XV – RETIREMENT...................................................................................... 50
Section 1 - PERS Continuation. .................................................................................... 50
Section 2 - Employee Share. ......................................................................................... 51
Section 3. Employer Share. ........................................................................................... 52
ARTICLE XVI - COMMUTE INCENTIVES AND PARKING ..................................... 52
Section 1 - Commute Incentive. .................................................................................... 52
Section 2 – Parking Lot Security – Municipal Service Center. .................................... 53
Section 3 – Bicycle Lockers and Motorcycle Parking. ................................................. 53
ARTICLE XVII - PHYSICAL EXAMINATIONS .......................................................... 53
ARTICLE XVIII – SAFETY ............................................................................................ 54
Section 1 - Health and Safety Provisions ...................................................................... 54
Section 2 - Union Cooperation. .................................................................................... 54
Section 3 - Safety Committees and Disputes. ............................................................... 54
ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE ....................................... 55
Section 1 - General Provisions. ..................................................................................... 55
Section 2 – Definitions.................................................................................................. 55
Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action
Procedure. ..................................................................................................................... 55
Section 4 - Grievance and Appeal Procedure. .............................................................. 57
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ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY
ACTION ........................................................................................................................... 59
Section 1 - Preliminary Notice of Discipline. ............................................................... 59
Section 2 - Skelly Meeting. ........................................................................................... 60
Section 3 – Appeals. ..................................................................................................... 60
ARTICLE XXI - NO ABROGATION OF RIGHTS ....................................................... 60
ARTICLE XXII - OUTSIDE EMPLOYMENT ............................................................... 61
ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS ......................................... 61
ARTICLE XXIV - PROVISIONS OF THE LAW ........................................................... 61
Section 1 - Conformity and Separability of Provisions. ............................................... 61
Section 2 - Merit Rules and Regulations. ..................................................................... 61
Section 3 - Resolution. .................................................................................................. 61
ARTICLE XXV - TUITION REIMBURSEMENT ......................................................... 61
ARTICLE XXVI - COST REDUCTION PROGRAMS .................................................. 63
ARTICLE XXVII – TERM .............................................................................................. 63
APPENDIX A ................................................................................................................... 66
APPENDIX B. APPRENTICESHIPS .............................................................................. 67
APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK
VARIATION .................................................................................................................... 70
APPENDIX D. IN-LIEU PREMIUMS ............................................................................ 75
APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS .............................. 76
APPENDIX F. RECOVERY OF CITY TRAINING COSTS .......................................... 77
APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT ............ 78
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2023 - 2024 MEMORANDUM OF AGREEMENT
City of Palo Alto and SEIU Local 521
PREAMBLE
This Memorandum of Agreement (hereinafter “MOA” is entered into by the City of Palo
Alto (hereinafter referred to as the “City”) and Local 521 Service Employees’ International
Union, CTW (hereinafter referred to as the “Union”). For the purposes of this MOA
“employee” shall mean an employee assigned to a classification within the SEIU General
Employee bargaining unit. This MOA is pursuant and subject to Sections 3500-3510 of
the Government Code of the State of California and Chapter 12 of the City of Palo Alto
Merit Rules and Regulations.
ARTICLE I – RECOGNITION
Section 1 - Recognition. Pursuant to Sections 3500 - 3510 of the Government Code of the
State of California and Chapter 12 of the City of Palo Alto Merit System Rules and
Regulations, the City recognizes the Union as the exclusive representative of a
representation unit consisting of all regular full and part-time employees in the
classifications listed in Appendix A attached hereto. This unit, shall for purposes of
identification, be titled the SEIU General Employees bargaining unit (hereinafter “General
Unit”).
Section 2 - Protection of Unit. No supervisor will perform the work of an employee in the
General Unit provided that there is an employee available who regularly performs such
work. This does not preclude a supervisor from performing work of a minor nature or
during bona fide emergencies or on a standby status when willing and qualified unit
employees do not live within a reasonable response time of their work location.
Supervisory personnel shall be called out to perform unscheduled work only when SEIU
General unit employees are unavailable to perform such work or in cases of bona fide
emergencies as defined in Article VIII, Section 2. In cases of bona fide emergencies, SEIU
General Unit employees shall be called out to complete the necessary work after the
immediate emergency situation has been reasonably contained.
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ARTICLE II - NO DISCRIMINATION
Section 1 – Discrimination. The City of Palo Alto is committed to providing a work
environment free from all forms of harassment and discrimination and agrees not to
harass or discriminate against employees or applicants based on such characteristics such
as race, ethnicity, color, religion, political affiliation, veteran status, military status,
national origin, ancestry, disability, medical condition, marital status, age, pregnancy, sex,
sexual orientation, gender identity and gender expression, or the perception that any
person has such characteristic, and any other characteristic protected by federal or state
law or City Ordinance. The City of Palo Alto will not harass or discriminate against
employees from exercising their rights to organize in accordance with the Meyers-Milias
Brown Act.
Complaints of harassment or discrimination may be reported to any of the following
individuals
• Immediate supervisor
• Any supervisor or manager within or outside of the department
• Department Head
• Human Resources Director
Complaints will be investigated in accordance with the City’s Policy and Procedures.
Section 2 - Right to Join the Union. The City and the Union agree to protect the rights of
all employees to exercise their free choice to join the Union and to abide by the express
provisions of applicable State and local laws.
ARTICLE III – UNION MEMBERSHIP
Section 1 - Notice.
a) When a person is hired in any of the covered job classifications, the City shall notify
that person that the Union is the recognized bargaining representative for the employee
and give the employee a current copy of the Memorandum of Agreement.
b) When a group employee orientation is held for new employees of the bargaining unit,
a union representative shall be permitted to make a presentation to such bargaining unit
employees during the employee orientation for the purpose of explaining matters of
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representation. The presentation shall not exceed 30 minutes. Management will not be
present during the Union presentation. The City will provide release time to a steward or
Union Officer for purposes of making the presentation. In addition, a non-City employee
Union representative will also be given access to attend for the purposes of making the
presentation.
c) The City will normally provide the Union with ten (10) days’ notice in advance of a group
orientation. Shorter notice may be provided only in a specific instance where there is an
urgent need critical to the employer’s operations that was not reasonably foreseeable.
The date, time, and place of the orientation shall not be disclosed to any third party except
the exclusive representative or a vendor that is contracted to provide a service for
purposes of the orientation.
d) When no group employee orientation is held, if an employee is unable to attend the
group orientation, or if the Union is unable to make a presentation because the City
provides less than ten (10) days’ notice, the City will offer the Union a monthly
opportunity to make a thirty (30) minute presentation to new employees. This may be
scheduled before or after the Steward Council meeting. For the months of January,
February, and March 2023, the Union may hold a monthly presentation (not to exceed 30
minutes) for employees hired between March 1, 2020 and September 30, 2022.
e) This section is intended to satisfy the requirements of Government Code Section 3556.
Section 2 – Payroll Deductions
The City shall deduct Union membership dues and pay other mutually agreed upon
deductions (including Committee on Political Education (COPE)) from the bi-weekly pay
of member employees. The deductions in this Section shall not apply during any period
where an employee is in an unpaid status and/or transfers or in any other manner leaves
the representation unit.
The Union will be the custodian of records for individual employee membership and dues
deduction forms. The Union will maintain all authorizations for dues deductions signed
by the individual from whose salary or wages the deduction or reduction is to be made.
The City will direct employee requests to cancel or change deductions to the Union.
Deductions may be revoked only pursuant to the terms of the employee’s written
authorization. The City shall remit the deducted dues to the Union as soon as possible
after deduction.
Section 3. Certification of Union Membership.
The Union agrees to provide the City on a monthly basis, a certified list of members and
a statement that the Union has and will maintain written authorizations signed by the
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individuals from whose wages the Union dues deductions are to be made, and a
statement that the Union shall indemnify the City for any claims made by the employee
for deductions made in reliance on that certification, in accordance with Government
Code Section 1157.12(a).
Section 4. Indemnification, Defense and Hold Harmless
Union agrees to indemnify and hold harmless the City and all officials, employees, and
agents acting on its behalf, from any and all claims, actions, damages, costs, or expenses
including all attorney’s fees and costs of defense in actions against the City, its officials,
employees or agents as a result of actions taken or not taken by the City pursuant to this
Article.
Section 5 - Documentation.
The City shall supply the Union with:
a) a monthly electronic file on or before the 15th of the month with the names,
addresses, classifications, hourly base pay, month, work locations, work phone,
home phone number, personal cellphone number, employee number, and
personal email, employee ID number, and Committee on Political Education
(COPE) listed separately of all bargaining unit employees on file with the City
except those who file written notice with the Human Resources Department
objecting to release of addresses, home telephone number, personal cellphone
number, or personal email address, in which case information will be transmitted
without these objected items; and
b) a list of bargaining unit new hires, terminations and retirements which occurred
during the previous month.
The Union shall supply the City, and as applicable, the employees, with documentation
required by Government Code Section 3502.5 (f).
Section 5 - Bulletin Boards and Departmental Mail.
The Union shall have access to inter-office mail, existing bulletin boards in unit employee
work areas for the purpose of posting, transmitting, or distributing notice or
announcements including notices of social events, recreational events, Union
membership meetings, results of elections and reports of minutes of Union meetings.
Any other material must have prior approval of the Human Resources Office. Action on
approval will be taken within 24 hours of submission. The Union may send email
messages only for the purposes set forth above. The IT Department will maintain the
SEIU list and keep it current. The Union access to email is based on the following
conditions: 1) emails to the SEIU list will be copied to the Human Resource Director, or
designee at distribution; 2) emails to the SEIU list will only be sent by the SEIU Chapter
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Chair, Vice Chair, Chief Steward (s) or Secretary, 3) a maximum of 52 emails may be sent
per year and a maximum of 12 emails may be sent by the SEIU Chapter Secretary.
Section 6 - Access to Union Representatives. Representatives of the Union are authorized
access to City work locations for the purpose of conducting business within the scope of
representation, provided that no disruption of work is involved. The representative must
notify the Human Resources Department prior to entering the work location.
Section 7 - Meeting Places. The Union shall have the right to reserve City meeting and
conference rooms for use during lunch periods or other non-working hours. Such meeting
places will be made available in conformity with City's regulations and subject to the
limitations of prior commitment.
Section 8 - Notification to the Union.
a) General. Pursuant to Government Section 3500, et seq. (Meyers-Milias-Brown Act
as amended), the Union shall be informed in advance in writing by Management
before any proposed changes not covered by this Memorandum of Agreement are
made in benefits, working conditions, or other terms and conditions of
employment which require meet and confer or meet and consult process. This
paragraph shall not be subject to the grievance procedure of this Memorandum
of Agreement so long as the Public Employment Relations Board retains
jurisdiction over the obligation to meet and confer in good faith.
b) Change in City’s Financial Situation. Should the City’s financial situation
deteriorate and the possibility of layoffs result, the City Manager will give prior
notice to and consult with the Union prior to recommending any layoffs to the City
Council.
c) Vacancies and Temporary Personnel. The City agrees to notify SEIU Local 521 in
writing when any irregular, temporary, hourly, provisional, special or extra help
employee who consistently performs work typical of the SEIU Local 521 bargaining
unit exceeds 1,000 hours of work within a 18-month period. The City agrees to
notify SEIU Local 521 in writing when any position covered by this agreement is
left vacant for more than 60 days. In coordination with the SEIU 521 Hourly
representation Unit, the City and SEIU 521 may meet regarding the conversion of
any long term and on-going hourly positions which may be converted to full time
positions through the budget process.
Section 9 - Union Logo. All materials and documents produced on Itek and metal plates,
by the City print and reproduction shop, shall carry the Union label on the inside of covers
or title pages in accordance with customary printing trades practices.
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Section 10 - Public Notice. The City shall make available to the Union, in a timely manner,
copies of all City Council meeting agendas, minutes and schedule of meetings. These
materials will be available online via the City’s website.
Section 11 - Use of Agency Reports. Upon request, the City shall provide to the Union
reports by department on the use of agency temporaries filling representation unit vacant
positions, or doing work similar to that of representation unit classifications.
Section 12 - Job Postings. The City shall incorporate the requirements of this Article when
publicizing job announcements for classifications covered by this Memorandum of
Agreement.
Section 13 - Contracting Out. The City through the labor management process will keep
the Union advised of the status of the budget process, including any formal budget
proposal involving the contracting out of SEIU bargaining unit work traditionally
performed by bargaining unit members at least thirty (30) days prior to the release of the
City Manager’s proposed budget. The City will notify the Union in writing at least ninety
(90) days prior to contracting work which has been traditionally performed by bargaining
unit members. Within the ninety (90) day period of contracting out, both parties may
offer alternatives to contracting out and meet and confer on the impact of such
contracting out of a bargaining unit employee work. The City will notify the Union in
writing when contracting out work which has been traditionally performed by bargaining
unit workers, where such contracting out is expected to replace a laid off bargaining unit
position that has been eliminated within ninety (90) days prior to the date of the planned
contract work. When feasible, the City will provide such notice prior to the beginning
date of the planned contract work. The City will meet with the Union upon request to
discuss alternatives. This provision does not apply to the filling of temporary vacancies of
twelve (12) months or less duration. The City will provide the Union with a biannual list
by department of all contract workers or vendors who are contracted by the City who
perform work for the City. The City will make a reasonable effort to identify the names
of the vendors on the list and the nature of the work provided by each vendor.
ARTICLE IV – STEWARDS AND OFFICERS
Section 1 - Union Officers. The Union agrees to notify the Director of Human Resources
of those individuals designated as Union officers and stewards who receive and
investigate grievances and represent employees before Management. Alternates may be
designated to perform steward functions during the absences or unavailability of the
steward.
Section 2 - Number of Stewards. The number of stewards designated by the Union at a
given time shall not exceed thirty-five (35).
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Section 3 - Release Time. It is agreed that, as long as there is prior notice as specified
below to the Supervisor and the release of stewards will not unreasonably disrupt City
operations, stewards shall be allowed reasonable release time away from their work
duties, without loss of pay, to represent a unit employee or employees on grievances or
matters within the scope of representation, including:
a) A meeting of the steward and an employee, or employees of that unit related to a
grievance.
b) A meeting with Management.
c) Investigation and preparation of grievances.
Grievances may be transmitted on City time. All steward release time shall be reported
on time cards.
Section 4 - Advance Notification Before Leaving Work Location. The Union agrees that
the steward shall give no less than one (1) full business day advance notification to his/her
supervisor before leaving the work location, except in those cases involving an
unforeseeable circumstance that requires immediate union representation where
advance notice cannot be given or when the relevant supervisor otherwise allows less
notice. A supervisor may deny such a request for release from duty if the steward is
needed to ensure real time delivery of services that the steward provides for the public
or internal City customers and another employee who normally provides such services is
not available on a straight time basis to relieve the steward, or in a bona fide emergency.
If such denial occurs, the union may request the release of another of its designated
stewards to perform the representation duties involved. Such request shall be processed
in accordance with the terms set forth in this section except that the requirement for a
full business day advance notice to the replacement representative’s supervisor shall not
apply. Nothing herein shall preclude the City from rescheduling a meeting it has
scheduled, to facilitate the attendance of a steward who has requested release if, in the
City’s judgment, such change can be undertaken without undermining the objectives of
the meeting.
Section 5 – Release Time. Four (4) Union officers, who are City employees, shall be
allowed a reasonable amount of release time off for purposes of meeting and conferring
or meeting and consulting on matters within the scope of representation. All such time
will be reported on timecards.
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Section 6 - Designated Union Space. Union stewards may utilize space in assigned desks
for storage of Union materials. In the event stewards are not assigned desks the City will
provide locker or other mutually agreeable space for storage of Union materials.
Section 7 - Union Officers and Release Time. Four (4) union officers, who are City
employees shall be allowed a reasonable amount of release time off for monthly
Labor/Management Meetings. When the Union believes additional subject matter expert
or experts would be helpful to the discussion, the Union shall notify the Human Resources
Director, or designee and request release time for those individuals. Additional release
time will be by mutual agreement.
Officers released under this section may be permitted reasonable release time for caucus,
the amount of which will be determined by mutual agreement.
ARTICLE V - REDUCTION IN FORCE
Section 1 - Attrition. In the event of reductions in force, they shall be accomplished
wherever possible through attrition.
Section 2 - Advance Notice. When the City determines that layoffs are imminent resulting
from reduction in force within the representation unit, the City will give the Union such
advance notice as is reasonable under the circumstances. The notice will indicate the
departments and divisions which will be affected and the circumstances requiring the
layoffs. The City will furnish the Union with a current representation unit seniority list
with notice of layoff.
Section 3 - Order of Layoff. If the work force is reduced within a department, division, or
office for reasons of change in duties or organization, abolition of position, shortage of
work or funds, or completion of work, employees with the shortest length of service will
be laid off first so long as employees retained are fully qualified, trained, and capable of
performing remaining work. Length of service for the purpose of this article will be based
on current service hire date of record in a regular classification with no adjustment for
leaves of absence. Length of service ties will be determined by lot in a method agreeable
to both parties. Employees laid off due to the above reasons will be given written notice
at least thirty days prior to the reduction in force. A copy of such notice will be given to
the Union. Such employees shall be offered priority employment rights to regular
positions which are requisitioned and for which the employees are qualified for a period
beginning with notification and ending sixty (60) days following the reduction in force.
Employees transferred or reclassified under this section will be assigned to the step in the
new classification salary range closest to the employee's salary range at the time of
reclassification. Employees laid off pursuant to this section shall receive the balance of
all regular City compensation owed and severance pay equal to one month’s salary at the
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employee’s final rate of pay at termination. This does not include any amounts payable
under Article V, Section 6, or PERS contribution refunds, if any.
Section 4 - Seniority/Bumping Rights. Employees identified for layoff who have seniority
(bumping) rights to their current or previously held classifications within the
representation unit must declare their intention to exercise these rights in writing and
submit to the Human Resources Department within seven (7) working days after written
notification of layoff, otherwise bumping rights will automatically terminate. Bumping
may occur within the representation unit, only to the least senior incumbent of the
current or a previously held classification. To bump, the employee must be fully qualified,
trained, and perform all work in the position. For purposes of this section of the
Agreement, the term "working days" shall mean Mondays through Fridays, exclusive of
holidays.
When an employee returns to work from a military protected leave, they will be
reinstated as required by law. Should this result in bumping a current employee; the
displaced employee will have bumping rights as set forth in this section.
Section 5 - Re-Employment List. The names of employees laid off or who through bumping
changed classification in accordance with the provisions of this Article shall be entered
upon a re-employment list in seniority order. The employee with the greatest seniority
on the re-employment list, including those who exercised their bumping rights, shall be
offered reinstatement first. Such notice of reinstatement shall be in writing with a copy
to the employee, Union and Chapter Chair. If a laid off employee waives reinstatement or
fails to respond within ten (10) working days of receipt of the notice, the employee shall
be removed from the reemployment list. The person with the highest seniority including
those who exercised their bumping rights on a re-employment list for a particular
classification when a vacancy exists in that classification shall be offered the appointment.
Names shall be carried on a re-employment list for a period of two (2) years from the date
of separation from City services or change of classification through bumping. Upon re-
employment within the two-year period, the employee's hire date of record at the time
of layoff will be reinstated. When qualifications are in question, the City and SEIU will
meet and confer.
Section 6 - Sick Leave Balances. Employees laid off pursuant to Section 2 who are
reinstated to a regular position within sixty (60) days shall retain the sick leave balance
they had at the time of layoff, unless they have received a sick leave payoff in accordance
with Article XII.
Section 7 - Hourly Employees Performing Duties. No representation unit employee will
be laid off or remain on a re-employment list when hourly employees are performing
substantially all the duties of the classification of the employee receiving a layoff notice
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or on a re-employment list. This provision shall not be applied to hourly positions which
have been traditionally used for seasonal and part-time work.
ARTICLE VI - PERSONNEL ACTIONS
Section 1 - Probation. Each new regular or part-time employee, except employees in
police dispatch positions, shall serve a probationary period of twelve (12) months,
commencing with the first day of his/her employment. Each new regular or part-time
employee in dispatch positions will serve an 18-month probationary period commencing
with the first day of his/her employment. The probationary period shall be regarded as a
part of the testing process and shall be utilized for closely observing the employee's work,
for securing the effective adjustment of a new employee to his/her position, and for
rejecting any probationary employee whose performance does not meet the acceptable
standards of work. At least one written performance appraisal will be given to each
probationary employee on or before expiration of the probationary period. This appraisal
will be given approximately at the end of the sixth month and another at the end of the
twelfth month for employees in police dispatch positions. In the event of termination
prior to successful completion of the probationary period, such terminated employee
shall be given written notice of his/her termination with the reasons for the termination
stated therein. The Human Resources Department shall, upon request, afford an
interview in a timely fashion to the terminated employee for discussion of the reasons for
termination. The employee may, upon request, be accompanied by a Union
representative. The interview shall not be deemed a hearing nor shall it obligate the City
to reconsider or alter the termination action. The parties agree that probationary
employees shall have all rights under this Memorandum of Agreement, including full and
complete access to the grievance procedure, save and except for instances of suspension,
demotion or termination.
Section 2 - Personnel Evaluations. Personnel evaluations will be given to employees
annually as scheduled by Management. Personnel evaluations are not appealable
through the grievance procedure but, in the event of disagreement over content, the
employee may request a review of the evaluation with the next higher level of
Management, in consultation with the Human Resources Department. For purposes of
this review, the employee may be represented by the Union. Decisions regarding
evaluation appeal shall be made in writing within ten (10) working days following the
review meeting.
Section 3 - Personnel Files. Records of all disciplinary actions shall be kept in the central
personnel file. Employees shall be entitled to sign and date all action forms in their
personnel files. Employees are entitled to review their personnel files upon written
request or to authorize, in writing, review by their Union representatives. An employee
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or the Union shall be allowed, upon reasonable request, copies of materials in an
employee's personnel file relating to a grievance. Records of disciplinary actions,
including references in a performance evaluation, shall be removed from a personnel file
upon written request by the employee after a period of four years, or sooner as mutually
agreed by Management and the employee so long as there have been no duplicated
policy violations since the discipline (based on the Notice of Disciplinary Action) and the
disciplinary action did not involve a violation of the City’s anti-harassment policy, or state
and federal harassment and discrimination laws.
Section 4 - Release of Information. The City will only release information to creditors or
other persons upon prior identification of the inquirer and acceptable reasons for the
inquiry. Information then given from personnel files is limited to verification of
employment, length of employment and verification and disclosure of salary range
information. Release of more specific information may be authorized by the employee.
Section 5 - Promotional Opportunities.
With the exception of Flexibly Staffed positions and Apprentice positions as described in
Appendix B, the promotional procedures in this Section will control. A Flexibly Staffed
position is a position where transition from one classification to another occurs when an
employee has met the requirements for promotion to the higher classification and does
not require a promotional process. A position is considered Flexibly Staffed when that
position is budgeted at a higher classification than the position is currently filled. For
example, if the City recruits for a Planner but ends up underfilling the position with an
Associate Planner, the incumbent may be reclassified to a Planner once they qualify for
that classification.
Flexibly Staffed positions will be identified by mutual agreement using the following
process: (1) Prior to posting the recruitment, the City will notify the Union that it intends
to identify a position as Flexibly Staffed; (2) if the Union requests to meet over the
designation, the recruitment will proceed and the Parties will discuss flexible staffing at
Labor Management; (3) if the Union does not request to meet over the designation or if
the Parties reach agreement to designate the position as Flexibly Staffed, the City will
designate the position as Flexibly Staffed.
a) Posting. Promotional opportunities for classifications within the representation unit
will be posted for at least fourteen (14) calendar days prior to selection. Outside
recruitment may be used for promotional openings and may begin at the time of
posting, or any time thereafter. If, however, there are three or more qualified internal
candidates within the department where the vacancy occurs, and those candidates
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successfully complete the selection process, outside candidates will not be
considered.
b) Internal Candidate Eligibility. All non-probationary representation unit employees
are eligible to apply for posted promotional opportunities, except that Management
may waive this requirement for all probationary employees within the department
where the promotional opportunity occurs.
c) Selection. The selection procedure for each promotional opening will be determined
and administered by the Human Resources Department in consultation with the
requisitioning department. Selection procedure and job description information will
be available at the Human Resources Office at the time of posting. Efforts will be made
to standardize tests and procedures where standardization is feasible and
appropriate. Any tests used shall be reasonably predictive of success in the
classification, and tests not be biased with respect to race, sex, sexual orientation,
religion, creed, political affiliation, color, national origin, ancestry, or age. Selection
procedures may include any or all of the following phases:
1) Application. Both inside and outside candidates must complete a City of Palo Alto
application form specified by the Human Resources Department. Applications
must be submitted to the Human Resources Office.
2) Screening. Applications will be screened by the Human Resources Department
and, in some circumstances, a manager from the Department seeking to fill a
position to ascertain whether candidates meet minimum requirements as
outlined in the job description. Internal candidates deemed not to meet minimum
requirements may submit additional qualification information writing within three
working days of notification of requirement deficiency.
3) Performance Testing. Performance tests, such as typing, machinery or vehicle
operation, skills demonstration, physical agility, etc., will be qualifying. Pass-fail
points will be announced in advance for qualifying tests. If requested in writing
prior to the test, performance test may be witnessed by Union steward.
4) Written Tests. Written achievement or aptitude tests will be qualifying. Pass-fail
points will be announced in advance for qualifying tests.
5) Interviews, Appraisals. Interviews may be conducted individually or by interview
boards and will be qualifying. Interview boards shall be composed of qualified and
unbiased people. Where interview boards are used, Management will include at
least one bargaining unit employee on each board. If individual interview or an
interview board is used, a majority of the individuals or board members must
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recommend a candidate in order for the candidate to qualify for appointment.
Performance appraisals written by candidates' supervisors may be used as
indicated in the selection procedure.
d) Recommended Candidates. Candidates who successfully complete all phases of the
selection procedure will be recommended to the appointing authority.
e) Seniority. Seniority, for purposes of this Article, will be based on current service hire
date of record in a regular classification with no adjustment for leaves of absence.
Seniority ties will be determined in favor of the employee with the lowest employee
number last four digits. Exceptions to this subsection may be established by mutual
agreement on a departmental or divisional basis. Such exceptions are listed in
Appendix E.
f) Appointment. The appointing authority will make appointments from among those
recommended candidates who are most qualified as determined by objective review
of selection procedure results and background materials. Where appointments are
made from only internal candidates who are equally qualified as determined by
objective review of selection procedure results and past performance, seniority will
be the determining factor in promotional appointments.
g) Violations. Any violation of this Article may be appealed to the Human Resources
Director in Step III of the grievance procedure.
h) Eligibility List (Pilot program). Human Resources may maintain an eligibility list of
those applicants who interviewed and were ranked within the top three (3). Candidates
on an eligibility list will be considered for any vacant position in the classification for which
the list exists, without the need to submit a new application under section (c)(1) of this
provision. This pilot program will sunset with the expiration of the MOA, but not later
than December 31, 2024, unless extended by written agreement of the parties.
Section 6 - Rights. Unit employees applying for a vacant equal or lower paying position
shall have the same rights as unit employees applying for a promotion.
Section 7 - Apprentice Positions. (a) The City shall establish apprentice positions wherever
feasible. Length of apprenticeship, type of training, and pay levels shall be by mutual
agreement. Where possible, apprentice positions will underfill regular positions so that
incumbents may automatically progress to the classification for which they are training
upon successful completion of apprenticeship. The City will meet and confer with the
Union before adding any new apprenticeship programs during the term of this
agreement. All apprenticeship programs are listed in Appendix B.
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Section 8 - Rotation. In assigning employees to regular or special shifts, transfer, standby,
overtime, or vacation selection, ability to perform the work, length of service or equitable
rotation shall determine the assignments. In accordance with this provision, more
definitive rules may be arranged by mutual agreement of the Union and individual City
departments.
ARTICLE VII - PAY RATES AND PRACTICES
Section 1 - Salary.
The base salary rates and ranges for job classifications covered by this bargaining unit
shall be increased as set forth in Appendix A to reflect salary increases for all positions in
the unit and market adjustments to positions identified in the total compensation survey
as under-market based on the survey results for base, cash, insurance and the normal
cost of retiree medical (when such information is required by and verified through the
CAFR), with total rates and ranges as set forth in Appendix A (Salary Schedule) attached
hereto.
Section 2 - Step Increases.
Merit advancements from the first salary step to the second salary step shall be granted
upon successful completion of probation and between second and subsequent steps at
one-year intervals, if the affected employee has demonstrated continued improvement
and efficient and effective service. For the purpose of determining step time
requirements, time will commence on the first day of the month coinciding with or
following entrance onto a salary step. Step increases shall be effective on the first day of
the payroll period in which the time requirements have been met.
Section 3 - Working Out of Classification. The term "working out of classification" is
defined as a Management authorized full-time assignment to a budgeted/approved
position on a temporary basis wherein all significant duties are performed by an individual
holding a classification within a lower compensation range. Out-of-classification
provisions do not apply to work assignments performed in connection with specific
predetermined apprenticeship or training programs, or declared conditions of public peril
and/or disaster. Pay for working out of classification shall be as follows:
a) Employees appointed to an "out of classification" will receive acting pay beginning the
first day of the assignment and shall be paid for all hours worked in the higher
classification provided employee works a minimum of four (4) hours.
b) Where out-of-class appointments last for more than 90 days, and whenever feasible,
an out-of-class appointment will be rotated among qualified interested employees in
the work group.
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c) Employees will receive 5% premium pay for all assigned out of class pay for work
within SEIU Classifications with the exception of lead assignments where the out of
class pay will result in a 7% premium pay.
d) Employee appointed to “out of class” assignments that are in the Management and
Professional Compensation Plan or in Utilities Management and Professional
Association for at least one workweek will receive up to a 10% premium pay.
Section 4 - Classification Changes.
a) During the course of this agreement, the Union and affected employees shall be
notified in advance of any contemplated changes in classification description, wage
range or steps. Such changes shall be subject to the meet and confer process. Such
meet and confer process shall be concluded within no more than thirty (30) days
following delivery of the City’s notice to the Union. If the Union and the City cannot
reach agreement on the appropriate pay level from a job so reclassified, the Union
may, within ten (10) City business days following the conclusion of the meet and
confer process described above by delivery of written notice to the Human Resources
Director, refer the dispute over the proposed wage range or steps to arbitration at
Step IV of the Grievance Procedure set forth at Article XIX of this Memorandum of
Agreement.
Section 5 - Reclassification Requests.
a) Effective Fiscal Year 2023-24, the Union may request in writing a re-evaluation of
up to three (3) positions based on significant permanent changes in job content
or significant discrepancies between job content and classification description.
The request must be in writing, contain justification and may be made only on an
annual basis during the period of January 10 through February 10. A statement
by management that a job reevaluation request will be submitted with the
departmental budget does not relieve the Union from the responsibility of
submitting a request during this period. The Human Resources Director or his or
her designee will initially respond to such requests within ninety (90) calendar
days by notice to the employee and the union; however, this timeline may be
extended if necessary. Such response shall include any reclassification to a
different classification or changes in description that the City believes are
warranted and any related changes in applicable pay range or steps. If meetings
are held, the employee may request representation. If a reclassification is
approved and results in an increase in salary, it shall be retroactive to the date the
Employee or Union filed the request for the reclassification.
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b) If the employee or Union disagrees with the accuracy of the description of duties
resulting from the study conducted pursuant to subsection (a) of this Section or
with the wage range or steps assigned by the City as a result of the study, the
employee or Union may, within ten (10) City business days of delivery of notice of
such determination, appeal such decision under step IV of Article XIX, Grievance
Procedure.
c) In a dispute under Section 4(a) or section 5(b) above, the arbitrator shall render
his or her decision on the appropriate wage range or steps within twenty-one (21)
days after the initial hearing date. The same time line will be observed for disputes
over the accuracy of the revised classification description. The parties will notify
the arbitrator of this deadline at the time of the arbitrator’s selection. In reaching
a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator
shall base his or her award on the factors traditionally taken into account in the
establishment of compensation. When deciding a dispute over the accuracy of
the revised classification description under section 5(b) above, the arbitrator shall
identify the modifications of the pre-existing classification necessary to accurately
reflect the permanent changes, if any, that have been implemented. Upon receipt
of the arbitrator’s award, the City shall implement the revised classification and
wage range or steps as provided in the award except as provided under subsection
5(c) of this section below. Notwithstanding an arbitrator’s award pursuant to any
appeal process, the City retains the right to forego implementing the changes and
the proposed changes shall revert to the status quo as it existed before those
changes in duties occurred or were proposed.
d) An employee may submit a request for reclassification for the same classification
no more than once every twenty-four (24) months.
Section 6 - Assignment to a Lead Position. All vacancies in lead positions shall be filled in
accordance with Article VI, Section 5. The pay range for the lead position shall be seven
percent above the pay step of the highest paid employee on the crew. Departmental
exceptions for filling lead positions on a rotational basis for training and development
purposes may be arranged by mutual agreement of the Union and individual City
departments.
Section 7 - Total Compensation and Survey Database.
a) Management and the Union have agreed to a compensation survey database
structure which identifies specific benchmark classifications for job families,
classifications within the job families of each benchmark classification, survey
agencies and survey classification matches. Survey Cities include:
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Alameda Hayward San Mateo
Berkeley Mountain View Santa Clara
Daly City Redwood City S. San Francisco
Fremont San Jose Sunnyvale
If the employer list will not permit the production of a survey report that includes data
from at least four (4) employers that employ employees in a classification comparable to
the classification surveyed by the City, neither party is precluded from bringing forward
information on other employers in the relevant recruitment area that employ workers in
a comparable classification so that data from at least five (5) surveyed employers will be
included in the study, if feasible. Such employer may include any public or private
employer.
The database is intended to provide one source of information concerning how the
compensation paid to employees in bargaining unit job classifications compares to that
paid by other employers. The City will update the survey database and send the Union a
copy no later than August 31, 2024. This survey will be considered in connection with
special adjustment proposals in successor agreement negotiations. By agreeing to a
survey database, neither Union nor Management is under obligation to propose or agree
to special adjustments.
City will agree to review the market studies (classification matches and comparable
jurisdictions) for the classifications of Park Ranger and Public Safety Dispatcher II and will
meet with SEIU beginning in February 2023. Changes will be by mutual agreement only
and will be implemented for the Fiscal Year following City Council adoption (e.g., adoption
in May 2023 would be implemented for FY 2023-24).
Section 8 - Direct Deposit
The City shall directly deposit all paychecks for Unit employees in a financial institution of
the employee’s choice that accepts direct deposits and does not charge the City a fee(s)
for direct deposit service. In the event that the employee fails to designate a financial
institution for direct deposit of his or her payroll check, the employee shall pick up the
check personally in the City’s Administrative Services Department office on the next
business day following payday at a pickup time designated by Administrative Services.
ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY
Section 1 - Work Week and Work Day. The standard workday for regular full time
employees shall be one of the following:
• Eight hours to be worked within a maximum of nine hours (five-day work week);
or
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• Ten hours to be worked within a maximum of eleven hours (four-day work week);
or
• Nine hours to be worked within a maximum of ten hours for four days with a fifth
day of four hours (four and one-half day work week); or
• Within a fourteen-day period, nine hours to be worked within a maximum of ten
hours for eight days and eight hours to be worked within a maximum of nine hours
for one day, with the work week scheduled to begin so that forty hours are worked
within each seven days of the fourteen-day period (9/80 plan, with forty-hour
work weeks), or any other schedule that results in a 40-hour work week, or fits
within the parameters of an FLSA 2080 Plan. The "9/80 plan" may not be used in
any application that requires entitlement to FLSA overtime for working the regular
work week.
With the exception of the 9/80 plan as described above and flexible scheduling for Police
Dispatchers, the standard work week for regular full time employees shall be forty hours
to be worked within five consecutive days. Additional exceptions to the above are listed
in Appendix C. The Union shall be notified of any further exceptions to this section in
accordance with Article III, Section 8.
The City and the Union agree that the availability of alternate/flexible work schedules is
a valuable benefit in that they promote job satisfaction while also reducing traffic
congestion and air pollution. Employees may utilize flexible arrangements to attend
trainings, seminars, meetings, or for other mutually agreed upon situations. Any such
change to work hours shall be approved by the supervisor in advance and should not
result in overtime.
During the term of this agreement, employees, subject to the conditions of their job
assignment, may propose an alternate work schedule as listed under this Section. Such
proposals must be made to the department head through the immediate supervisor.
Serious consideration will be given to the feasibility and productivity of such proposals,
however Management retains the right to determine scheduling needs.
Section 2 - Overtime Work.
a) Overtime work for all unit employees shall be defined as any time worked beyond
the standard workday or beyond the standard work week.
All time for which pay is received shall count as hours actually worked for the
computation of regular overtime pay; however, non-productive time will not be
included in computation of any additional FLSA premiums.
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b) Emergency overtime is defined as unplanned overtime work arising out of
situations involving real loss of service or property or personal danger. Emergency
overtime does not include:
i. overtime work resulting from personnel replacement for purposes of
maintaining scheduled staffing;
ii. overtime work which is planned in advance;
iii. overtime work resulting from being held over for up to four hours to finish
work performed during the regular shift.
c) Compensation to employees working overtime will be in the form of additional
pay at the rate of one and one-half times the employee's applicable hourly salary
with the exception that an employee may request and, upon approval, be granted
compensatory time off at the rate of one and one-half hours for each hour of
overtime worked, subject to the limitations of applicable state and federal laws.
Two times the employees’ applicable hourly salary will be paid for billable
customer convenience overtime and emergency overtime as defined in
subsection (b) above. Employees may elect at any time to cash out compensatory
time off hours or roll into vacation time, up to applicable maximums. These
elections must be made via the Compensatory Time Cashout Form submitted to
payroll and will take place the following pay period, if received by the form’s due
date. Any compensatory time off hours not taken, allocated, or cashed out will be
automatically cashed out once a year during the first pay period in April.
d) When an employee is required to work 6 or more hours of overtime (either
emergency or pre-arranged) during the 16 hour period immediately preceding the
beginning of the employee’s regular shift on a workday, the employee shall be
entitled to an nine (9)hour rest period before returning to work. If the rest period
overlaps into the second half of the work day, the employee may be given (with
supervisor approval) the remaining time off (up to a maximum of 3 hours) at the
straight time rate of pay. Any portion of the rest period falling within the
employee’s work shift will be considered as hours worked and compensated at
the straight time rate.
e) If non-emergency overtime is canceled without at least 40 clock hours notice, the
City shall pay the affected employees two (2) hours' pay at time and one-half.
f) Employees working overtime who are too fatigued to continue or return to work,
for safety reasons will be released from duty without compensation.
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g) Part-time Employees. Authorized hours worked by an employee in a budgeted,
part-time position in excess of the scheduled hours of work of the position shall
be compensated at the employee’s applicable hourly rate up to the maximum of
non-overtime hours in the work period applicable to the employee. If a part-time
employee works more than 80 hours in a pay period then overtime will be paid in
accordance with the FLSA.
Section 3 - Work Shifts. All employees shall be assigned to work shifts with scheduled
starting and quitting times. Should conditions necessitate a change in starting and
quitting times, the Union will be notified ten (10) working days in advance and permitted
to discuss such changes with the City. This, however, shall not preclude the City's right to
effect schedule changes dictated by operational necessity. This section does not apply to
overtime scheduling.
Section 4 - City-Paid Meals.
In accordance with City policy, the City of Palo Alto bases its meal reimbursement limits
on the U.S. General Services Administration (GSA) per diem rates. Those rates are
adjusted every October. For overnight travel per diem rates, the City reimburses based
on the rates applicable to the destination of travel, as provided by the GSA at
http://www.gsa.gov/portal/category/100120. For non-travel meals, the City will reimburse
up the maximum GSA rates for the Palo Alto area. Receipts are required to back-up these
expenses.
a) Emergency overtime meals. For purposes of this section, emergency overtime is
defined as unplanned overtime arising out of situations involving real loss of
service or property or personal danger. The City agrees to reimburse for meals
based on GSA maximum rates for the Palo Alto Area and will provide meals in the
following emergency overtime situations:
1) When an employee is called back and is on duty for a period of three
consecutive hours, and thereafter at intervals of five hours, but not more than
six hours, until the continuous overtime assignment ends.
OR,
2) When an employee is held over on duty so that his/her overtime assignment
extends two hours after shift end, and thereafter at intervals of five hours, but
not more than six hours, until the continuous overtime assignment ends.
OR,
3) When an employee is called out two hours or more before a regularly
scheduled day shift and works the regularly scheduled shift, he/she will be
entitled to breakfast and lunch. Lunches will be consumed on employee's own
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time. No in-lieu pay will be made for meals not taken. This sub-section does
not apply if already covered in Section 4(a)(1) above.
4) When recalled two hours or less after the end of a regular shift, unless
assigned to standby.
b) Non-emergency overtime meals. The City will provide meals for personnel
assigned to non-emergency overtime work where the assignment extends two
hours after the regular or overtime shift end and at intervals of five hours
thereafter.
c) With regard to (a) and (b) above, the City agrees to reimburse for meals based on
GSA maximum rates for the Palo Alto Area. Where possible, the City will arrange
purchase orders at mutually agreeable restaurants. The time necessarily taken to
consume a meal provided under this section shall be considered as time worked
to a maximum of one hour, except as noted in (a) (3).
d) With regard to (a) and (b) above, in the event an employee is to be provided a
meal or meals pursuant to this section and such meal(s) are not provided due to
working conditions, the employee shall have the option of receiving for each meal
not provided an additional one hour of overtime compensation in lieu of such
meal. This hour will not be considered as time worked or part of the rest period,
but will be applied to qualify for the rest period.
e) Emergency overtime meals for Public Safety Dispatchers. The Police Department
will provide meals to employees in an emergency overtime situation involving real
or potential loss of service or personal danger.
1) When an employee is called back and is on duty for a period of three
consecutive hours, and thereafter at intervals of five hours, but not more than
six hours, until the continuous overtime assignment ends.
2) When an employee is held over on duty so that his/her overtime assignment
extends two hours after shift end, and thereafter at intervals of five hours, but
not more than six hours, until the continuous overtime assignment ends.
3) When an employee is called out two hours or more before a regularly
scheduled shift. The employee will be entitled to two meals, the second meal
will be consumed on the employee's own time. No in-lieu pay will be made
for meals not taken.
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4) When recalled two hours or less after the end of a regular shift, unless
assigned to standby.
f) Non-emergency overtime meals for Public Safety Dispatchers. The Police
Department will provide meals to employees in non-emergency situations where
the assignment extends more than two hours after the regular or overtime shift
end and at intervals of five hours thereafter. If the City is unable to provide a meal,
the City agrees to reimburse for meals based on GSA maximum rates for the Palo
Alto Area. This policy only applies when an employee is held over, either voluntary
or mandated, on duty beyond a scheduled regular or overtime shift.
Section 5 - Break Periods. All employees shall be granted a break period or coffee break
limited to 15 minutes during each four hours of work. Departments may make reasonable
rules concerning break period scheduling. Break periods not taken shall be waived.
Section 6 - Clean-Up Time. All employees whose work causes their person or clothing to
become soiled shall be provided with reasonable time before lunch and at shift end for
wash-up purposes.
Section 7 - Standby Pay, Call-Out Pay.
a) Standby Compensation. Employees performing standby duty shall be
compensated at the daily rates established below:
Monday through Friday $70
Saturday, Sunday, Holidays $100
In the event of a declared City emergency, this section applies to standby assigned
in accordance with applicable department policy.
b) Minimum Call-Out Pay. Employees not otherwise excluded from receiving
overtime pay who are called out to perform work shall be compensated for at
least two hours' pay from the time of the call-out for each occurrence at the
appropriate overtime rate. The two-hour minimum does not apply to employees
called out to work while earning pay for being in a standby status unless called out
to perform billable customer convenience work in which case the two-hour
minimum will apply.
Section 8 - Night Shift Premium. Night Shift premium is paid at a rate of 6% of an
employee’s base hourly rate. Night Shift premium is paid only for hours actually worked
between 6:00 p.m. and 8:00 a.m. Employees who regularly work night shifts shall receive
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appropriate night shift premiums, relating to night shift hours worked, in addition to base
pay for holidays, sick leave and vacation.
In order to be eligible for night shift premium, an employee must meet the following
criteria:
a) Be assigned to a shift on a regular basis which is scheduled for at least 2 hours
between the hours of 6:00 p.m. and 8:00 a.m.;
b) Or be assigned to work another employee’s regularly assigned shift which is
scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.;
c) Or if your schedule is temporarily changed under Section 3 of this article which is
scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.
The following are excluded from eligibility for night shift premium:
a) Overtime hours;
b) Alternate work schedules at an employee’s request which overlap with the hours
of 6:00 p.m. and 8:00 a.m.
Section 9 - Bilingual Premium. $50 per pay period shall be paid to a bilingual employee
whose abilities have been determined by the Human Resource Director as qualifying to
fill positions requiring bilingual speaking and/or writing ability when the employee
regularly performs such duties. The Human Resource Director will determine the
number, timing, location and duration of the assignments receiving the additional pay
provided herein and which languages are needed. Sign language shall be recognized as a
bilingual skill under this Article. Disagreements over the designation of positions will be
referred first to the Labor Management Committee. If a disagreement still exists it will
be referred to the Grievance Procedure. Human Resources will respond to the employee
within sixty calendar (60) days after receipt of request. Upon approval by the Human
Resources Director, the City is required to arrange for language testing within four (4)
months of the approval.
Section 10 - Communications Training Officer (CTO) Compensation. Public Safety
Dispatchers and Chief Public Safety Dispatchers identified by Management to work as a
Police Officers Standards and Training (POST) certified CTO will be compensated at a
premium pay rate of five (5) percent. The premium pay is provided only for those hours
spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center.
ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES
Section 1 - Uniforms.
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a) The City will provide uniforms, coveralls or shop coats on a weekly basis, or as
otherwise furnished, for the following jobs and/or classifications and any positions
necessary or required as determined by management.
Animal Control Officer
Assistant Storekeeper
Associate Engineer - Pretreatment
Auto Service Mechanic
Building Service Person - Lead
Building Service Person
Cathodic Technician
Cement Finisher - Lead
Cement Finisher
Chemist
Community Service Officer (CSO)
Electrical Assistant
Electrician Apprentice
Electrician Lead
Engineering Technician III - Refuse
Equipment Operator
Equipment Operator - Lead
Facilities Carpenter
Facilities Electrician
Facilities Maintenance - Lead
Facilities Mechanic
Facilities Painter
Field Serviceperson
Gas System Shop/Field Repairer
Gas System Technician I
Gas System Technician II
Golf Course Equipment Mechanic
Golf Course Maintenance Person
Heavy Equipment Operator - Lead
Heavy Equipment Operator
Industrial Waste Inspector
Industrial Waste Investigator
Instrumentation Electrician
Laboratory Technician, Water Quality Control
Line Person/Cable Splicer
Line Person/Cable Splicer - Lead
Mail Services Specialist
Maintenance Mechanic/Maintenance Mechanic, Water Quality Control
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Mechanical Unit Repairer
Meter Reader
Meter Reader – Lead
Mobile Service Technician
Motor Equipment Mechanic - Lead
Motor Equipment Mechanic
Offset Equipment Operator - Lead
Offset Equipment Operator
Park Maintenance Assistant
Community Services Officer Park Maintenance Person
Park Crew - Lead
Park Maintenance - Lead
Park Ranger
Parks & Open Space Assistant
Police Records Specialist
Refuse Disposal Attendant
Senior Chemist
Senior Industrial Waste Inspector
Senior Industrial Waste Investigator
Senior Instrumentation Technician
Senior Operator, Water Quality Control
Senior Mechanic, Water Quality Control
Senior Park Ranger
Sprinkler System Repairer
Street Maintenance Assistant
Storekeeper
Storekeeper-Lead
Street Sweeper Operator
Traffic Control Maintainer - Lead
Traffic Control Maintainer II
Traffic Control Maintainer I
Tree Trimmer-Line Clearer
Tree Maintenance Assistant
Tree Trimmer-Line Clearer Assistant
Tree Trimmer-Line Clearer - Lead
Tree Maintenance Person
Truck Driver
Utilities Compliance Technician
Utility Field Service Representative
Utility Installer/Repairer
Utility Installer/Repairer Assistant
Utility Installer/Repairer – Lead
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Utility Locator
Water Meter Cross Connection Technician
Water System Operator - Lead
Water System Operator
Water System Operator I
Water System Operator II
Water Quality Control Plant Operator
b) Coveralls will be made available for occasional use as needed to protect clothing
for the following classifications and any positions necessary or required as
determined by management.
Building Inspector
Building Inspector Specialist
Building Service Person - Lead
Cable Splicer Assistant
Chief Electric Underground Inspector
Electrical Assistant
Electrician
Facilities Mechanic/Painter
Heavy Equipment Operator
Lineperson/Cable Splicer
Park Ranger
Senior Park Ranger
Utility Field Service Representative
Sprinkler System Repairer
Utility Installer Assistant
Utility Installer/Repairer
Utility Installer/Repairer - Lead
c) Employees required to wear uniforms shall be provided suitable change rooms
and lockers where presently provided.
d) Employee clothing seriously damaged or destroyed in conjunction with an
industrial injury will be reasonably replaced by the City. Any other claims alleging
City liability may be filed with the City Attorney.
e) Except in the Utilities Division, the City will make available, as an alternative to the
shirts currently provided under Section 1(a), six (6) cotton polo shirts. Employees
in the Utilities Division will be provided with six (6) long-sleeve shirts and two polo
shirts. Employees will be responsible for laundering the shirts. Damaged or
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otherwise unwearable shirts will be returned to the employee’s supervisor and
replaced by the City.
f) Employees are responsible for laundering Park Ranger and Senior Park Ranger
uniforms.
g) The City will meet and confer with the Union regarding any mandated changes to
uniforms.
h) In accordance with California Code of Regulations (C.C.R.) section 571(a) the
estimated value of City provided uniforms is $21.28 per pay period.
Section 2 - Tool Allowance.
a) Mechanics in Equipment Maintenance, Park Maintenance Lead, Motorized
Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance
of $1000 annually upon verification of purchase by the employee.
b) Parties will meet and confer to determine if additional classifications require tool
allowance.
Section 3 - Shoe Allowance.
a) Safety Shoes. The City will pay the vendor or reimburse full-time employees up to
$400 per fiscal year for the cost of job-related safety shoes upon verification of
such purchase by the employee.
b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related
walking shoes for any positions necessary or required as determined by
management including Meter Reader and Meter Reader-Lead, in an amount not
to exceed $300.00 per year. A walking shoe is a durable work shoe/boot (non
steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water
resistant; lightweight and durable; and also provides hard surface cushioning.
c) Additional Boot Reimbursements. Employees in the Park Ranger Classification will
receive an additional $200 per year to account for the additional cost of wildland
fire boots for a total Safety Shoe reimbursement of $600. Employees in the
Lineperson series will receive an additional $200 per year to account for the
additional cost of climbing boots for a total Safety Shoe reimbursement of $600.
Section 4 – Certifications. The parties agree to retain the current list of required
certifications below. Employees who are required to maintain commercial driver's
licenses shall have costs for medical examinations paid by:
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a) Completing an examination through their PEMHCA provider. After benefits have
been paid by the PEMHCA provider, upon presentation of proper documentation,
the City will reimburse any remaining costs, or
b) Completing an examination at the Workforce Medical clinic or other City
designated clinic. Employees may use paid leave for attendance at scheduled
medical examinations. Employees shall be permitted to use up to two hours of
regular City-paid time for attendance at biannual medical examinations. The
scheduling of such time shall be preauthorized by the employee’s supervisor.
c) The City will pay special registration and/or certification fees which are required
by Management. During the term of this agreement, the City and the Union may,
by mutual agreement, review, add or delete classifications and/or required
certifications listed below:
Classification Requirement
Facilities Technician Aquatics Facility Operator Certificate
Building Inspector/
Buildg Inspection Specialist Certificate as stated in job description
Cathodic Technician Corrosion Technician by the National
Assoc. of Corrosion Engineers
Engineer Professional Professional Engineer Cert. (for step E)
Equip Maint Serv Pers. Forklift Operator Cert. (OSHA-approved)
Golf Course Maint Pers. Qualified Applicators' License
Heavy Equipment Operator Crane Operation Certificate
(Utilities and Electric)
Indust. Waste Inspector Backflow Prevention Device Tester
Inspector Field Services, Utilities D1 (DOH)
Hired before July 1, 2012
Installer/Repairer Series D1 (DOH)
Maintenance Mechanic Crane Operator Certification
(Water Quality)
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Mech. Unit Repairer Welding Certificate
Motor Equip Mechanic
and Lead EMS, ASE
Planner, Associate Planner AICP
Senior Planner
Public Safety Dispatcher POST Basic Dispatcher
EMD
Public Safety Dispatcher, Lead POST Basic Dispatcher
POST Supervision
EMD
Senior Operator, WQC Grade III Wastewater Treatment Plant
Operator Certification
Surveyor, PW Licensed Land Surveyor
Tree Trimmer/Line Clearer Certified Tree Worker and/or Qualified
Line Clearance/Tree Trimmer Cert.
(OSHA-approved)
Tree Trimmer/Line Clearer-Lead Certified Arborist
Utilities Install/Rep series Polyethylene Fusing Cert.
Gas Operator Certification (DOT)
Veterinarian Technician Animal Health Tech. Certification
Water System Operator I Grade DI – Water Distribution Operator
Water System Operator II Grade DII – Water Distribution Operator &
Grade TII – Water Treatment Operator
Senior, Water System Operator Grade DIII – Water Distribution Operator &
Grade TIII Water Treatment Operator
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WQC Plant Operator I Grade I Wastewater Treatment Operator
Certification.
WQC Plant Operator II Grade II Wastewater Treatment Operator
Certification
WQC Plant Operator Trainee Grade I Wastewater Treatment Operator
Certification
Water Meter Cross-
Connection Technician Backflow Prevention Tester Certification
d) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all
employees required to maintain a Commercial Driver's License in accordance with
the California Vehicle Code and applicable laws prescribed by the Department of
Transportation.
e) Pipeline Welding Assignment. The City provided a 4% premium in base
compensation to the Utility Installer-Repairer and the Installer-Repairer Lead
positions in 2006 that met DOT certification requirements and are, or were,
assigned these duties. The Utility Installer-Repairer and Utility Installer-Repairer
Lead positions that fail to maintain current certifications will not receive a 4%
premium on their base pay. Positions assigned these duties and designated by
Management to receive this premium will not exceed five (5) Utility
Installer/Repairer(s) and Installer/Repairer Lead(s). If the certification is required
in the job description, certification must be maintained. In accordance with their
job description Maintenance Mechanics that are assigned to Water Gas
Wastewater must maintain all required certifications and shall receive 4%
premium to their base pay for pipeline welding.
f) Building Inspector and Building Inspector Specialists. Upon successful
completion of probationary requirements, the City will pay Building Inspectors
and Building Inspector Specialists a one (1) percent of base salary one-time
payment for a certification above what is required. Employees may request one
payment per year to a maximum of two payments in career. Payments will not
exceed a maximum of one percent per year or two payments in a career. The
Building Inspector and Building Inspector Specialist Job Descriptions specify
current requirements and the Union and City will agree on a list of appropriate
certifications eligible for the premium. Premiums will not be paid if certification
is not maintained.
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g) Water and Wastewater System Operator Certification. Employees classified in
the following positions: Water Quality Control Plant Operators I and II, Senior
Operator Water Quality Control, Laboratory Technician Water Quality Control,
Chemist, Senior Chemist, Water System Operators I and II, Senior Water Systems
Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job
Series may be eligible to receive a 1% base pay premium for certifications required
by the Department of Health, California Water Environment Association and/or
the State Water Resources Control Board. Employees within these job
classifications that have successfully completed probationary requirements may
request an annual payment of one (1) percent for one (1) certification that is
above those listed in their job description. An employee who qualifies for this
payment shall be paid 1% of the employee’s annual base salary once per year. The
employee shall be responsible for providing the City with written documentation
that the employee has obtained and is maintaining the qualifying certification on
an annual basis. Premiums will not be paid if certification is not maintained.
Eligible employees should verify certification will qualify for the premium before
attempting certification. The Union and the City will update the job descriptions
to reflect newly required certifications with no further adjustments to base salary.
Payments will not exceed a maximum of one percent per year, and will take effect
in the pay period following the verification of certification. All costs for obtaining
certifications above what the job description requires will be the responsibility of
the employee and may be paid for by using the City’s tuition reimbursement
program.
h) In accordance with Cal-OSHA regulations any employee who operates a forklift
must have Forklift Operator Certification. Training to be provided by the City.
i) Crane Certification. A Heavy Equipment Operator, Line Person, Line Person Lead,
or Maintenance Mechanic who possesses the legally required certification for
operation of any crane will receive an increase of one percent (1%) of their base
rate effective upon the ratification and adoption of this MOU by the City Council,
or upon attainment of the certification, whichever is later.
Heavy Equipment Operator (Electric) must possess a Crane certification regardless of
hire date. Any employee hired on or after July 1, 2012 may be required to obtain and
possess crane certification.
For any other employee hired prior to July 1, 2012 crane certification shall be desirable
(not required) except under the following circumstances:
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a) There are insufficient employees in the classification (Heavy Equipment Operator
[exclusive of Electric], Lineperson, Lineperson Lead or Maintenance Mechanic)
who possess the certification to perform the work;
b) The Manager has sought volunteers and no employee in the classification has
volunteered to train for the certification;
c) All things being equal, the manager has selected the least senior employee in the
classification who is judged by the City most likely to successfully complete the
training and obtain crane certification.
d) The Manager will allow up to three attempts to pass the crane certification for any
employee hired before July 1, 2012 who has been involuntarily assigned to acquire
the crane certification. Related training and test costs shall be borne by the City.
No employee hired before July 1, 2012 shall be disciplined or discharged for failure
to acquire a Crane certification.
Section 5 - Weather Protection. The City will provide rainy weather foot protection and
one summer hat for the classification of Community Services Officer.
ARTICLE X - HOLIDAYS
Section 1 - Fixed Holidays. Except as otherwise provided, employees within the
representation unit shall have the following fixed holidays with pay:
January 1
Third Monday in January (Martin Luther King Day)
Third Monday in February
Last Monday in May
July 4
First Monday in September
Second Monday in October
Veterans' Day, November 11
Thanksgiving Day
Day after Thanksgiving
December 25
Winter Floater (see below)
In the event that any of the aforementioned days, , falls on a Sunday, the following
Monday shall be considered a holiday. In the event that any of the aforementioned days
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falls on a Saturday, the preceding Friday shall be considered a holiday. Exceptions to this
provision are listed in Appendix E.
Winter Floater. Employees shall be excused with pay for a full work shift on a day mutually
agreed to by the employee and their supervisor during the month of December. If
employees are not excused pursuant to this provision, one shift of vacation credit will be
added to their vacation accrual.
Day of Reflection. In addition to the paid holidays listed above, employees shall be
excused with pay for one full work shift as a day of reflection (floating holiday) per
calendar year. Employees may use the floating holiday on any day mutually agreed by the
employee and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day
(June 19) or Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by
the end of the fiscal year will be deemed forfeited and have no cash value.
Section 2 - Pay for Fixed Holidays.
a) All employees shall be paid a full day's pay at their regular straight time base hourly
rate for all fixed holidays as defined herein.
b) An employee must be in a pay status on the workday preceding the holiday to be
eligible to be compensated for a holiday. This subsection does not apply to an
employee who is on an unpaid medical leave of absence of less than five (5) days.
Section 3 - Work on Fixed Holidays.
Any employee required to work on a fixed holiday shall be paid time and one-half for such
work in addition to his or her regular holiday pay. Work on a fixed holiday beyond the
number of hours in a regular shift shall be compensated at double time and one-half.
Employees who work a schedule where a regular day off falls on a holiday will accrue the
holiday hours they would have normally worked on that day. If an employee has more
than four (4) days of holiday time accrued the City will automatically cashout these
additional hours. This does not impact the employee’s ability to cashout or transfer to
deferred comp holiday hours below the four (4) day threshold.
Section 4 - Variations in Work Week.
a) An employee whose work schedule requires that his or her regular days off be other
than Saturday and/or Sunday shall have an additional day off scheduled by the
department in the event a fixed holiday falls during his or her regularly scheduled day
off. Every attempt will be made to schedule the day on a mutually agreeable basis. If
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the day cannot be so scheduled, the employee shall be paid for the day at the straight
time base rate.
b) Fixed holidays which fall during a vacation period or when an employee is absent
because of illness shall not be charged against the employee's vacation or sick leave
balance.
c) If conditions necessitate a departmental closure impacting employees’ regular
schedules, management will work with employees to provide assignments unless the
employee chooses to take unpaid time off or use paid time off in the form of vacation,
personal business or compensatory time.
Section 5 - Floating Days Off
Employees hired on or before July 1, 2012 will be credited with 3 floating holidays to be
scheduled for use by mutual agreement by employee and supervisor. In no event will FH
be convertible to cash or other benefits in lieu of Floating Holidays.
Effective at the close of business 6/30/13 one floating holiday will be eliminated. On July
1, 2013 and every July thereafter, employees will be credited with two (2) Floating
Holidays to be scheduled in the same manner as noted above.
Employees hired after 7/1/12 will not receive any floating holidays.
Floating Holidays not used by the end of the fiscal year will be deemed forfeited.
ARTICLE XI - VACATIONS
Section 1 - Vacation Accruals. Each employee shall be entitled to an annual paid vacation,
accrued as follows:
a) First day of continuous service through the last day of the fourth (4th) year: eighty 80
hours vacation per year.
b) First day of the fifth year of continuous service through the last day of the ninth (9th)
year: one-hundred and twenty 120 hours vacation per year.
c) First day of the tenth (10th) year of continuous service through the last day of the
fourteenth (14th) year: one-hundred and sixty 160 hours vacation per year.
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d) First day of the fifteenth (15th) year of continuous service through the last day of the
nineteenth (19th) year: one-hundred and eighty 180 hours vacation leave per year.
e) Twenty (20) or more years: two-hundred 200 hours vacation leave per year.
Vacation accrual will be prorated based on hours in paid status.
Employees may accrue up to three (3) times their annual vacation accrual (e.g., an
employee who accrues 80 hours per year has an accrual cap of 240 hours). In the event
the City is unable to schedule vacation and, as a result thereof, the employee is subject
to loss of accrued vacation, the City shall extend the vacation accrual limit up to one year,
in which time the excess vacation must be scheduled and taken. As long as there is no
interference with departmental operations, there shall be no unreasonable restriction of
increments of use. Employees shall complete six (6) months' continuous service before
using accrued vacation leave.
At the time of initial appointment, or to address an identified retention issue the City may
credit an employee for prior experience or special expertise, including prior years of
public service in a city, county, special district, state, or federal government agency, up to
a maximum of five (5) years’ service. The City Manager or designee shall identify the
number of years for which the employee will receive credit (up to the five (5) year
maximum).
Section 2 - Holiday Falling During Vacation. In the event a fixed holiday as defined in
Article X falls within an employee's vacation period, which would have excused the
employee from work (and for which no other compensation is made), an additional
workday for such holiday shall be added to the vacation leave.
Section 3 - Illness During Vacation. When an employee becomes ill while on vacation and
such illness can be supported by a statement from an accredited physician or the
employee is hospitalized for any period, the employee shall have the period of illness
charged against sick leave and not against vacation leave.
Section 4 - Accrued Vacation Pay for Deceased Employees. An employee who is eligible
for vacation leave and who dies while in the municipal service shall have the amount of
any accrued vacation paid to his/her estate within thirty days. This proration will be
computed at his/her last basic rate of pay.
Section 5 - Effect of Extended Military Leave. An employee who interrupts service
because of extended military leave shall be compensated for accrued vacation at the time
the leave becomes effective.
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Section 6 - Vacation at Termination. Employees leaving the municipal service with
accrued vacation leave shall be paid the amounts of accrued vacation to the date of
termination.
Section 7 - Vacation Cash Out.
Once each calendar year an employee may cash out eight or more hours of vacation
accrual in excess of 80 hours, to a maximum of 120 hours, provided that the employee
has taken 80 hours of vacation in the previous 12 months.
1. To be eligible for cash out vacation, employees must pre-elect the number of vacation
hours they will cash out during the following calendar year up to maximum of 120
hours, prior to the start of that calendar year. The election will apply only to vacation
hours accrued in the next tax year and eligible for cash out.
2. The election to cash out vacation hours in each designated year will be irrevocable.
This means that employees who elect to cash out vacation hours must cash out the
number of accrued hours pre-designated on the election form provided by the City.
3. Employees who do not pre-designate or decline a cash out amount by the annual
deadline established by the City will be deemed to have waived the right to cash out
any leave in the following tax year and will not be eligible to cash out vacation hours
in the next tax year.
4. Employees who pre-designate cash out amounts may request a cash out at any time
in the designated tax year by submitting a cash out form to Payroll. Payroll will
complete the cash out upon request, provided the requested cash out amount has
accrued and is consistent with the amount the employee pre-designated. If the full
amount of hours designated for cash out is not available at the time of cash out
request, the maximum available will be paid.
5. For employees who have not requested payment of the elected cash out amount by
November 1 of each year, Payroll will automatically cash out the pre-designated
amount in a paycheck issued on or after the payroll date including November 1.
ARTICLE XII - LEAVE PROVISIONS
Section 1 - Sick Leave.
a) The City shall provide each employee with paid sick leave, earned on a biweekly basis,
at the rate of ninety-six (96) hours per year for full time employees. Employees will
accrue sick leave at a rate of three point seven (3.7) hours per pay period. Sick leave
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accrual will be prorated based on hours in paid status. Sick leave accrual accumulation
shall be limited to 1,000 hours
b) Use of Sick Leave. Sick leave shall be allowed and used in cases of actual personal
sickness or disability, medical or dental treatment, or as authorized for personal
business. Up to nine days sick leave per year may be used for illness in the immediate
family, including registered domestic partner. A new employee may, if necessary, use
up to forty-eight (48) hours of sick leave at any time during the first six months of
employment. Any negative balances generated by such utilization will be charged
against future accrual or deducted from final paycheck in the event of termination.
c) An employee who has been disabled for 60 consecutive days and who is otherwise
eligible both for payment under the long-term disability group insurance coverage and
accrued sick leave benefits may, at his/her option, choose either to receive the long
term disability benefits or to utilize the remainder of his/her accrued sick leave prior
to applying for long-term disability benefits.
d) Sick leave will not be granted for illness occurring during any leave of absence unless
the employee can demonstrate that it was necessary to come under the care of a
doctor while on such other leave of absence.
e) Return to Work With Limited Duty. Upon approval of department management and
the City Risk Manager, an employee may return to work for doctor-approved limited
duty. Approval for return to work shall be based upon department ability to provide
work consistent with medical limitations, the location of the work assignment, and
the length of time of the limitations. The City doctor may be consulted in determining
work limitations.
f) If an employee’s illness results in an absence from work for more than three (3)
consecutive work days or twenty-four (24) continuous hours, whichever is greater, a
doctor’s certificate or other proof of illness may be required. The department head
or designee may require a doctor’s certificate or other proof of illness when there is
reasonable cause of misuse.
g) Leave Committee
During the term of this Agreement, upon request by either party, the parties will meet
with the goal of developing alternate leave models, such as “Paid Time Off” or other
similar benefits. Any changes implemented during the term of this agreement must
be by mutual agreement only.
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Section 2 - Bereavement Leave. Leave of absence with pay of three days shall be granted
an employee by the head of his or her department in the event of death in the employee's
immediate family, which is defined for the purposes of this section as wife, husband, son,
step-son, son-in-law, daughter, step-daughter, daughter-in-law, mother, step-mother,
mother-in-law, father, step-father, father-in-law, brother, brother-in-law, step-brother,
sister, step-sister, sister in- law, grandmother, grandmother-in-law, grandfather,
grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, registered domestic
partner, or a close relative residing in the household of the employee. Such leave shall be
at full pay and shall not be charged against the employee's accrued vacation or sick leave.
Request for leave with pay in excess of three (3) days shall be subject to the written
approval of the City Manager. Approval of additional leave will be based on the
circumstances of each request with consideration given to the employee's need for
additional time.
Section 3 - Military Leave. The provisions of the Military and Veterans' Code of the State
of California shall govern the granting of military leaves of absence and the rights of
employees returning from such leaves. Consistent with the Military and Veterans Code,
the City of Palo Alto shall pay employees in SEIU bargaining unit their regular salary, salary
differential, and all available benefits for up to thirty days per calendar year.
Section 4 - Leave Without Pay.
a) Disability. Leaves of absence without pay may be granted in cases of disability not
covered by sick leave. Pregnancy will be considered as any other disability. Leaves of
absence for disability are subject to physicians' verification including diagnosis and
medical work restriction.
b) Family Leave. Family leave will be granted in accordance with applicable state and
federal law.
c) Other Leaves. Leaves of absence without pay may be granted in cases of personal
emergency, Union business or when such absences would not be contrary to the best
interest of the City. Non-disability prenatal leave is available under this provision, but
such leave shall not begin more than six months prenatal nor extend more than six
months postpartum.
During unpaid leaves of absence for disability or other reasons, the employee may elect
and the City may require that employee to use paid leave credits in a manner consistent
with state and federal law. Requests for leaves without pay shall not be unreasonably
denied. In order to avoid misunderstandings, all leaves without pay must be in writing to
be effective.
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Section 5 - Jury Duty and Subpoenas. Employees required to report for jury duty or to
answer subpoenas as a witness in behalf of the State of California or any of its agencies
shall be granted a leave of absence with pay from their assigned duties until released by
the court, provided the employee remits to the City all fees received from such duties
other than mileage or subsistence allowances within thirty (30) days from the termination
of jury service. When an employee returns to complete a regular shift following time
served on jury duty or as a witness, such time falling within the work shift shall be
considered as time worked for purposes of shift completion and overtime computation.
In determining whether or not an employee shall return to his or her regular shift
following performance of the duties, reasonable consideration shall be given to such
factors as travel time and a period of rest. When a combination of City work time and
jury duty equals 14 or more hours in the 24-hour period immediately before the
employee's shift starting time, the employee will be allowed a rest period of nine hours.
Any portion of the rest period falling within the employee's work shift will be considered
as hours worked and compensated at the straight time rate. This provision does not apply
to conditions of bona fide emergency. Bona fide emergency conditions are conditions
involving real or potential loss of service or property or personal danger.
Section 6 - Time Off to Vote. Time off with pay to vote in any general or direct primary
election shall be granted as provided in the State of California Elections Code, and notice
that an employee desires such time off shall be given in accordance with the provisions
of said Code.
Section 7 - Disapproval of Leave of Absence. In case of disapproval of extension,
revocation or cancellation of an existing leave of absence, notice shall be sent by certified
mail, return receipt requested, to the employee stating the date of such action, the reason
and a specific date to return to work, which is not less than five working days from date
indicated on return receipt.
Section 8 - Personal Business Leave Chargeable to Sick Leave. All employees shall be
granted up to thirty (30) hours personal business leave per calendar year, chargeable to
sick leave. The employee need not disclose the reason for the personal business. The
scheduling of such leave is subject to the approval of the appropriate level of
Management, and such approval shall not unreasonably be denied.
Section 9 - Return to Assignment. The department shall make every effort to ensure that
employees resuming work following a leave pursuant to Sections 1- 8 shall be returned to
the assignment, shift, and/or work location held immediately prior to the leave. If the
employee cannot be so assigned, he or she shall, upon request, be granted a meeting with
department management to discuss the reasons for the change. Upon request, the
employee shall be afforded Union representation at such a meeting.
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ARTICLE XIII - WORKERS' COMPENSATION INSURANCE
Section 1 - Industrial Temporary Disability.
a) While temporarily disabled, employees shall be entitled to use accrued sick leave for
the first three (3) days following the date of injury and thereafter shall be paid full
base salary for a period of not to exceed fifty-seven (57) calendar days, unless
hospitalized, in which case employees shall be paid full base salary for a period not to
exceed sixty (60) days from date of injury.
b) For any temporary disability continuing beyond the time limits set forth in (a) above,
employees shall be paid two-thirds (66 2/3%) of their full base salary at the time of
injury for the duration of such temporary disability in conformance with the State law.
c) During the period of temporary disability, an employee's eligibility for health, dental,
life, LTD, or other insured program will continue with City contributions at the same
rate as for active employees. In case of Subsection (a) above, the employee will
continue to accrue vacation and sick leave benefits. In the case of Subsection (b), sick
leave and vacation benefits shall not be accrued.
Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees.
Vocational Rehabilitation will be made available to employees who have suffered
permanent disability as a result of an injury or illness sustained in the course and scope
of employment before 1/1/04. For injuries on or after 1/1/04 qualified employees are
entitled to supplemental job displacement vouchers in accordance with the California
Labor Code, Division 1, Department of Industrial Relations and Division 4, Workers’
Compensation and Insurance, the Americans with Disabilities Act (ADA), and the City of
Palo Alto's Workers’ Compensation Program.
ARTICLE XIV - BENEFIT PROGRAMS
Section 1 - Health Plan.
a) Active Employees
During the term of this contract, the maximum City contribution towards medical
premiums for eligible full time employees per employee category shall be up to a
maximum of the following for any plan:
•
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Effective January 1, 2023:
• Employee only: $906
• Employee plus one: $1,812
• Employee Family: $2,350
Effective January 1, 2024, the City will increase its maximum contribution by 50% of the
increases to Kaiser. Provided however, that the total increase of the maximum City
contribution shall not exceed 4%.
The City’s total maximum contribution towards medical premiums for eligible part time
employees shall be prorated based on the number of hours per week the part-time
employee is assigned to work.
PEMHCA minimum changes per statutory determination and has historically been
increased by $3 dollars each year. Any increases to the PEMHCA minimum during the
term of this contract will result in a corresponding decrease to the amount of the
additional City contribution, so that the total maximum City contribution never exceeds
the amount listed in the Maximum City Contribution described above.
b) Health Plan Coverage for Future Retirees Hired Before January 1, 2005.
Monthly City-paid premium contributions for a retiree-selected health plan through the
CalPERS Health Benefits Program will be made as provided under the Public Employees’
Medical and Hospital Care Act. Effective 1/1/07 the City’s monthly employer contribution
for each retiree and their eligible family members, as defined by the CalPERS Health
Benefits Program, shall be the amount necessary to pay for the cost of his or her
enrollment, in a health benefits plan up to the monthly premium for the 2nd most
expensive plan offered to the SEIU employee (among the existing array of plans).
However, the City contribution for an employee hired before January 1, 2005 who retires
on or after April 1, 2011 the City contribution for the retiree and their eligible family
members, as defined by the CalPERS Health Benefits Program, shall be the same
contribution amount it makes from time to time for active City employees.
The City provided active unit employees who were hired before January 1, 2005 with a
one-time opportunity to opt-in to retiree health benefits provided under California
Government Code section 22893. Eligible employees who wish to exercise this option
shall inform the People, Strategy, and Operations department of their election in writing
no later than 90 days following the ratification and adoption of this Agreement.
c) PERS – Health Benefit Vesting For Future Retirees Effective January 1, 2005 or any
existing employee who opts into this vesting schedule.
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The CalPERS vesting schedule set forth in Government Code section 22893 will apply to
all SEIU employees hired on or after January 1, 2005 or any existing employees who opt
into this vesting schedule. Under this law, an employee is eligible for 50% of the specified
employer health premium contribution after ten years of service credit, provided at least
five of those years were performed at the City of Palo Alto. After ten years of service
credit, each additional year of service credit will increase the employer contribution
percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon
retirement for 100% of the specified employer contribution. However, the maximum
contribution for eligible family members, as defined by the CalPERS Health Benefits
Program, will be 90% of the specified employer contribution. The City of Palo Alto's health
premium contribution will be the minimum contribution set by CalPERS under section
22893 based on a weighted average of available health plan premiums.
d) Retiree Health Committee
During the term of this agreement the parties will maintain a Retiree Health Committee.
The Union shall appoint two (2) Union members (and one Union staff person) to serve on
this committee who shall receive reasonable release time to attend Retiree Health
Committee meetings. Changes to this section during the term of this Agreement will be
by mutual agreement only. The parties agree that Retiree Health Committee meetings
may be attended by representatives of other City labor groups.
e) Coverage for Domestic Partners.
Domestic Partnership Registered with the California Secretary of State. Employees
may add their domestic partner as a dependent to their elected health plan coverage
if the domestic partnership is registered with the Secretary of State.
Domestic Partnership Not Registered with the California Secretary of State.
Domestic partners who meet the requirements of the City of Palo Alto Declaration of
Domestic Partnership, and are registered with the Human Resources Department, will
be eligible for a stipend of two hundred and eighty four dollars ($284.00) per month
toward the cost of an individual health plan. Evidence of premium payment will be
required with request for reimbursement.
f) Alternative Medical Benefit Program.
If a regular employee and/or the employee’s dependent(s) are eligible for and elect
to receive medical insurance through any other non-City of Palo Alto employer-
sponsored or association-sponsored group medical plan, the employee may choose
to waive his/her right to the City of Palo Alto’s medical plan insurance and receive
cash payments in the amount of two hundred eighty-four dollars ($284) for each
month City coverage is waived.
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Examples of waivers eligible for this payment are:
• Employee waives all applicable City medical coverage; or
• Employee is eligible to enroll his or her spouse or domestic partner and waives
medical coverage for the spouse or domestic partner; or
• Employee has additional eligible dependents and waives family-level medical
coverage.
Participation must result in a health insurance cost savings to the City and payments
per employee shall not exceed a total of two hundred eighty four dollars ($284.00)
per month. To participate in the program the employee and dependents must be
eligible for coverage under PEMHCA medical plans, complete a waiver of medical
coverage form, and provide proof of eligible alternative medical coverage.
Payments will be made in the employee’s paycheck beginning the first month
following the employee’s completion of the waiver form. Payments are subject to
state and federal taxes and are not considered earnings under PERS law. Employees
are responsible for notifying the City of any change in status affecting eligibility for
this program (for example, life changes affecting dependent’s eligibility for medical
coverage through the employee) and will be responsible for repayment of amounts
paid by the City contrary to the terms of this program due to the employee’s failure
to notify the City of a change in status.
If the State of California or federal government requires the City to participate and
contribute toward coverage under any medical plan outside of PEMHCA including but
not limited to the Affordable Care Act, the City’s total liability for enrolled employees
and retirees and their eligible family members shall not exceed what the City would
have paid toward PEMHCA coverage in the absence of such state or federal plan. The
parties will meet and confer over the impact of such change on matters within the
scope of representation before implementing any change.
Section 2 - Dental Plan.
a) The City shall continue to provide a self-funded dental program for the benefit of City
employees and their eligible dependents. The City shall pay 100% of the required
premiums for the program, except that benefits for regular part-time employees will
be prorated as follows: Employees hired after January 1, 2005, who will work less than
full time, will receive prorated premium costs for dental benefits in accordance with
his/her percentage of a full-time work schedule. Part-time employees currently
receiving full benefits will not be impacted.
b) The City’s Dental Plan provides the following:
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• Maximum Benefits per Calendar Year $2,000 per person.
c) Effective July 1, 2001, dental implants in conjunction with one or more missing natural
teeth, and removal of implants will be covered as a Major Dental Service at 50% usual,
customary and reasonable (UCR).
d) Effective 1/1/07 the City will add composite (tooth colored) fillings in dental plan
posterior teeth.
e) Effective 1/1/07 the City will pay up to $2000.00 for Orthodontia coverage.
Section 3 - Vision Care. The City shall continue to provide a self-funded vision care
program for the benefit of City employees and their dependents. The City shall pay 100%
of the required premiums for the program. The benefits of the vision care program shall
continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan.
Vision benefits for regular part-time employees hired or assigned to a part-time schedule
will be prorated in accordance with his/her percentage of a full- time work schedule.
Section 4 - Life Insurance. The City agrees to continue the Basic and Supplemental life
insurance plan as currently in effect for the term of this Memorandum of Agreement.
Section 5 – Long Term Disability Insurance. The City shall continue the long term
disability insurance plan currently in effect for the term of this Memorandum of
Agreement. For Plan A, the benefit is 66 and 2/3% of pre-disability earnings to the
maximum benefit level of $4000.00 per month. Employee coverage is subject to a
voluntary payroll deduction of the insurance premium applicable to the first $6,000 of
monthly salary, less a credit of $11.17 per month to be paid by the City. For Plan B, the
benefit is 60% of pre-disability earnings up to the maximum benefit level of $1800 per
month. Employee coverage is subject to a voluntary payroll deduction of the insurance
premium applicable to the first $2000 of monthly salary for Plan B. The City will pay
premiums in excess thereof.
Section 6 - Effective Date of Coverage for New Employees. For newly-hired regular
employees, elected coverage will begin on the first day of the month following date of
hire.
Section 7 - Dual Coverage. When a City employee is married to another City employee
each shall be covered only once (as an individual or as a spouse of the other City
employee, but not both) and dependent children, if any, shall be covered by only one
spouse.
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Section 8 - Deferred Compensation. The City shall continue to make available a Section
457 Deferred Compensation Plan to SEIU employees and will insure reasonable access
to Deferred Compensation representatives for all interested employees.
Section 9 – Dependent Care Assistance Program and Medical Flexible Spending
Accounts. The City shall continue to provide a Dependent Care Assistance Program
(DCAP) and Medical Flexible Spending Accounts (FSA) for employees that comply with
Section 125 of the Internal Revenue Code. Calendar year limits are set by the IRS. All
matters related to the FSA shall be excluded from the grievance requirements of this
MOA (per side letter agreed to in 2011).
a) Dependent Care Assistance Program: Can be used to pay for qualified day care (or
dependent care) expenses with pre-tax dollars.
b) Medical FSA: Provides reimbursement for excess medical/dental/vision, or expenses
that are incurred by employees and their dependents which are not covered or
reimbursed by any other source, including existing City-sponsored plans. The City will
deduct the annual administrative fee through a payroll deduction (currently $4 as of
2015) or if the employee has unused FSA dollars from the prior calendar year, the City
will apply those dollars to cover the administrative fee.
Section 10 - Training Programs.
a) Employees assigned by the City to attend meetings, workshops, or conventions of
their professional or technical associations shall have their dues and reasonable
expenses paid by departmental funds and shall be allowed to attend such workshops,
meetings, and conventions on paid City time.
b) City will reimburse for travel, meals and lodging while away from home attending an
educational conference that the supervisor authorizes as being job related or which
will improve an employee’s skills. Per City Policy and Procedure 1-02, the Pre-Travel
Authorization Form should indicate expenses that will be paid.
ARTICLE XV – RETIREMENT
Section 1 - PERS Continuation.
a) Pension Group A: 2.7% @ 55. The City will continue the present benefits under the
Public Employees' Retirement System 2.7% at 55 for employees hired before July 17,
2010. The Parties acknowledge that employees under this formula hired before July
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17, 2010 are subject to a final compensation calculation, for pension determination
purposes, based on their single highest year of compensation earnable as provided by
Government Code Section 20042.
b) Pension Group B: 2.0% @ 60 – (Single Highest Year). For employees hired on or after
July 17, 2010 and before January 1, 2013, and employees hired on or after January 1,
2013 who are not “new members” of CalPERS as defined in the Public Employees’
Pension Reform Act (often referred to as “Classic” CalPERS members), but before the
adoption of the modified 2% at 60 formula described below, whichever is later, the
City will continue to provide the 2% at 60 retirement formula (“2% at 60”). The Parties
acknowledge that employees under the existing 2% at 60 pension formula are subject
to a final compensation calculation, for pension determination purposes, based on
their single highest year of compensation earnable as provided by Government Code
section 20042.
c) Pension Group C: 2.0% @ 60 – (3 Highest Years). The City shall further amend its
contract with CalPERS to provide miscellaneous “Classic” CalPERS members hired on
or after August 1, 2013 with the CalPERS retirement formula two percent (2.0%) of
final compensation at age sixty (60) with a final compensation calculation, for pension
determination purposes, based on the employee’s three consecutive highest years of
compensation earnable, as provided by Government Code section 20037. The City
may delay the adoption or implementation of the foregoing amendment to the
extent it deems such delay necessary to accommodate legal and administrative
requirements. In such event, employees hired between and including August 1, 2013
and the day before the amendment’s implementation date will be placed in the 2% of
final compensation at age 60 formula with single highest year earnable compensation
as described above.
d) Pension Group D: 2% @ 62. Employees hired on or after January 1, 2013 meeting the
definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t.
Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but
not limited to the two percent at age 62 (2%@62) retirement formula with a three
year final compensation period.
Section 2 - Employee Share.
Effective with the first pay period including July 1, 2012 employees in Pension Groups A,
B and C described in Section 1 above shall pay 8% if enrolled in the 2.7%@55 benefit or
7% if enrolled in the 2%@60 benefit.
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Employees in Pension Group D shall pay the employee contribution required by the Public
Employees’ Pension Reform Act, calculated at fifty percent (50%) of the normal cost.
Section 3. Employer Share.
Effective the first full pay period following December 1st, 2017, employees (Groups A-D)
shall pay one percent (1.0%) of their salary toward the employer cost of retirement (in
addition to the employee share) in accordance with Section 20516 of the California
Government Code.
Effective the first full pay period including December 1, 2020, employees in this unit
(Groups A-D) shall pay an additional 1% of their salary toward the employer cost of
retirement for a total of 2% (in addition to the employee share) contribution toward the
employer share.
This will result in SEIU employees in Groups A-D paying a total of two (2) percent of the
employer share (in addition to the employee share) effective the first full pay period
including December 1st, 2020.
ARTICLE XVI - COMMUTE INCENTIVES AND PARKING
Section 1 - Commute Incentive. It is the City’s interest to reduce single occupancy vehicle
trips to the extent possible in order to address current traffic and environmental
challenges. During the term of this agreement, the parties shall meet and confer on
changes to the City’s commute incentive and parking program adopted by the City
Council. Eligible employees may voluntarily elect one of the following commute
incentives:
a. Civic Center Parking. Employees assigned to Civic Center and adjacent work
locations. The City will provide a Civic Center Garage parking permit. New
employees hired after April 30, 1994 may initially receive a parking permit for
another downtown lot, subject to the availability of space at the Civic Center
Garage.
b. Carpool. The City will provide $30 per month (taxable income) to each eligible
employee in a carpool for 60% or more of their scheduled work days per
month with two or more people.
c. Bicycle. The City will provide $20 per month to eligible employees who ride a
bicycle to work. This payment is available through the CCD web site in the
form of a special Commuter Check (tax free) for bike equipment, gear or
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repairs. This benefit cannot be combined with other commute benefits.
d. Walk. The City will provide $20 per month (taxable income) to eligible
employees who walk to work 60% or more of their scheduled work days.
e. Transit or vanpool users: Tax-free incentives up to the IRS limit (currently
$255/month) are available through the Commuter Check Direct (CCD) web site
for employees using Bay Area public transportation or riding in a registered
vanpool at least 60% of their scheduled work days.
f. Go Pass. The Go Pass program will offer civic center and other downtown-
based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in
all zones seven days per week.
g. The City and Union agree to meet in Labor Management Committee to assess
and improve the application of the telecommuting policy and option for
employees.
The deadline for registering with CCD and placing an online order is 8:59 p.m. on the 7th
of each month, for the next month’s benefit. For example, employees wishing to order
a transit pass by June must place their online orders with CCD by May 7th.
Section 2 – Parking Lot Security – Municipal Service Center. The City will provide fenced
and locked parking facilities for Municipal Service Center employees. Procedures will be
established for entering and leaving the parking facilities.
Section 3 – Bicycle Lockers and Motorcycle Parking. The City will provide bicycle lockers
and motorcycle parking areas for City employees at mutually agreeable work locations.
ARTICLE XVII - PHYSICAL EXAMINATIONS
If any non-probationary employee who is required to have a City-provided physical
examination not related to workers' compensation programs disagrees with the findings
of the City-sponsored physician, he/she may consult with his/her own physician and, if
his/her private physician's report conflicts with that of the City physician in terms of ability
to work at his/her regular job, then he/she may request an evaluation of his/her problem
through a third physician mutually agreed upon by the employee and the City. Cost for
such examination will be equally shared and the decision of this physician concerning the
continuing ability of the employee to perform his/her work in his/her regular job without
exposing himself/herself to further injury as a result of his/her condition shall be the basis
for returning the employee to his/her regular work.
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ARTICLE XVIII – SAFETY
Section 1 - Health and Safety Provisions. The City shall furnish and use safety devices and
safeguards and shall adopt use practices, means, methods, operations and processes
which are reasonably adequate to render such employment and place of employment
safe, in conformance with applicable safety regulations under the State Labor and
Administrative Code sections. The City shall not require or permit any employee to go to
or be in any employment or place of employment which is not safe.
Section 2 - Union Cooperation. Union will cooperate with the City by encouraging all
employees to perform their work in a safe manner.
Section 3 - Safety Committees and Disputes. Safety committees composed of
Management and Union stewards in the below listed organizations will meet no less than
six (6) times annually to discuss safety practices, methods of reducing hazards, and to
conduct safety training. This shall in no way remove the basic responsibility of safety from
Management nor shall it in any way alter the responsibility of the employee to report
unsafe conditions directly and immediately to his or her supervisor.
Community Services
Public Works
Water-Gas-Wastewater Field Operations
Electric Field Operations
Water Quality Control
a) A ten-member Citywide Union/Management safety committee with equal Union and
Management membership will meet upon call to review safety and occupational
health standards and practices, discuss overall City safety and health problems, and
to act as an advisory group to the departmental safety committees. The committee
shall review all departmental safety programs and recommend change where
necessary.
b) In cases of dispute over safe working conditions the employee will first report such
unsafe conditions to his or her supervisor and every attempt will be made to rectify
the problem at this level. The employee may contact his or her steward to assist in
the resolution of the dispute. If the problem cannot be resolved the Risk Manager will
be contacted and the problem will be addressed through the interpretation of the
basic safety rules and regulations. Should the problem not be resolved at this step,
the grievance procedure will be utilized. Safety grievances shall be submitted at Step
III.
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c) The City will continue employee workplace evaluations in compliance with CalOsha,
Title 8, section 5110.
ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE
Section 1 - General Provisions. The City and the Union recognize that early settlement of
grievance or appeal of disciplinary actions is essential to sound employee-employer
relations. The parties seek to establish a mutually satisfactory method for the settlement
of employee grievances, or appeal of disciplinary action, or Union grievances as provided
for below. In presenting a grievance or appeal of disciplinary action, the aggrieved and/or
his or her representative is assured freedom from restraint, interference, coercion,
discrimination or reprisal. Release time for investigation and processing a grievance or
appeal of disciplinary action is designated in Article IV of this Memorandum of Agreement
(MOA).
Section 2 – Definitions.
a) Grievance means an unresolved complaint or dispute regarding the application or
interpretation of rules, regulations, policies, procedures, Memorandum of Agreement
or City ordinances of resolution, relating to terms or conditions of employment, wages
or fringe benefits, excluding however those provisions of this MOA which specifically
provide that the decision of any City official shall be final, the interpretation or
application of those provisions not being subject to the grievance or appeal of
disciplinary action procedure.
b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action
against an employee covered by this Memorandum of Agreement. Discipline is
defined as suspensions without pay, reductions in pay, demotion or discharge.
Reprimands, transfers, reassignments, layoffs, and negative comments in
performance evaluations are not considered discipline.
Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure.
a) An aggrieved employee may be represented by the Union or may represent
himself/herself in preparing and presenting a grievance or appeal of disciplinary
action at any level of review. Grievances or appeal of disciplinary action may also be
presented by a group of employees. No grievance or appeal of disciplinary action
settlement may be made in violation of an existing merit rule or memorandum of
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agreement. The Union will be notified prior to the implementation of any settlement
made which affects the rights or conditions of other employees represented by the
Union. The Union and the Steward will be copied on all written representation unit
grievance or appeal of disciplinary action decisions.
b) An employee and the representative steward, if any, may use a reasonable amount of
work time so long as there is no disruption of work, in conferring about and presenting
a grievance or appeal of disciplinary action. Requests for release time to prepare
grievance or appeal of disciplinary action shall be made in accordance with the
provisions of Article IV, Section 3.
c) Beginning with the third step of the grievance or appeal of disciplinary action
procedure, the Chief Steward or Alternate Chief Steward may assist in presenting a
grievance or appeal of disciplinary action and may be present at all Step III, and IV
grievance or appeal of disciplinary action hearings.
d) The time limits specified in this Article may be extended by mutual agreement in
writing of the aggrieved employee or the Union and the reviewer concerned.
e) Should a decision not be rendered within a stipulated time limit, the grievant may
immediately appeal to the next step.
f) The grievance or appeal of disciplinary action may be considered settled if the decision
of any step is not appealed within the specified time limit.
g) If appropriate, the aggrieved employee(s) or the Union and the department head may
mutually agree, in writing, to waive Step I and/or Step II of the grievance or appeal of
disciplinary action procedure.
h) Grievances or appeal of disciplinary action shall be made in writing and submitted on
forms provided by the City or on forms which are mutually agreeable to the City and
the Union. The written grievance or appeal of disciplinary action shall contain clear,
factual and concise language, including: (1) the name of the grievant; (2) a statement
of the facts upon which the grievance or appeal of disciplinary action is based,
including relevant dates, times and places; (3) specific provisions of this Agreement or
specific City rules, policies, or procedures which the grievance or appeal of disciplinary
action alleges has been violated; (4) a summary of any steps taken toward resolution;
and (5) the action the grievant believes will resolve the grievance or appeal of
disciplinary action.
i) Any retroactivity on monetary grievances or appeal of disciplinary action shall be
limited to the date of occurrence, except in no case will retroactivity be granted prior
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to three months before the grievance or appeal of disciplinary action was filed in
writing.
j) If the grievance is filed by more than one employee in the bargaining unit, the Union
may, at its option, convert it to a Union grievance after Step II of the grievance
procedure. The Union may also file a grievance in those instances when, under this
Memorandum of Agreement, a Union right not directly related to an individual
employee becomes the subject of dispute. Union grievances shall comply with all of
the foregoing provisions and procedures.
k) For purposes of time limits, “working days” are considered to be Monday through
Friday, exclusive of City holidays.
l) If a mutually agreed solution is reached during any step of this grievance or appeal of
disciplinary action procedure, the agreement shall be placed in writing and signed by
the City and the grievant or union.
m) Upon request of either party, meetings to discuss the grievance or appeal of
disciplinary action shall be held at any step in the grievance or appeal of disciplinary
action procedure.
n) The Parties may mutually agree in writing to an alternate method(s) of delivery for
any communication for any notices required pursuant to Article XIX, Grievance
Procedure, of a grievance or appeal of disciplinary action. Such agreement shall list
the designated representative(s) for each party and the appropriate contact
information for each Party, and describe the agreed-upon method(s) of
communication. All designated representatives shall be copied on any
communications. On all transmissions that are intended to conform to a time limit,
the sender shall retain proof that the transmission was sent within that limit (for
example, confirmation of electronic mail transmission or record of successful fax
transmission) in the sender’s file for production if a dispute arises over existence or
timing of the transmission. Either Party may designate new representatives or
terminate an alternate delivery agreement under this section by providing written
notice, which shall be effective immediately, to the other.
Section 4 - Grievance and Appeal Procedure.
Step I. Informal Discussion. Within fifteen (15) working days after the incident or
discovery of the incident on which the grievance or appeal of disciplinary action is based
the aggrieved employee shall present the grievance action to his or her immediate
supervisor and attempt to resolve the grievance through informal discussions. Every
attempt will be made to settle the issue at this level.
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Step II. If the grievance is not resolved through the informal discussion in Step 1 or the
employee wishes to appeal disciplinary action taken against him/her in the case of a
grievance, the employee will reduce the grievance or appeal of disciplinary action to
writing and submit copies to the Department head or his or her designee within fifteen
(15) working days of the discussion with the immediate supervisor or within fifteen (15)
working days from the receipt of a final disciplinary action. The Department Head or
designee shall have fifteen (15) working days from the receipt of a written grievance or
appeal of disciplinary action to review the matter and prepare a written statement.
Step III. If the grievance or appeal of disciplinary action is not resolved and/or the
aggrieved employee is not satisfied with the Step II decision, the grievant or disciplined
employee may appeal to the Human Resource Director or his or her designee in writing
within fifteen (15) working days of the receipt of the Department Head's response. The
written appeal to the Human Resources level shall include a copy of the original grievance
or appeal of disciplinary action, the Department Head’s decision at Step II, and a clear
statement of the reasons for appeal. Within fifteen (15) working days, after receiving the
written appeal, the Human Resource Director shall review the matter and prepare a
written statement. If a mutually agreed solution is reached during this process the
agreement shall be placed in writing and signed.
Step IV. If the grievance or appeal of disciplinary action is not resolved at Step III, the
aggrieved employee may choose between final and binding resolution of the grievance or
appeal of disciplinary action through appeal to the City Manager or through appeal to
final and binding arbitration. For the term of this Memorandum of Agreement, appeals to
final and binding arbitration may be processed only with Union approval. All Step IV
appeals must be filed in writing at the Human Resources Department within fifteen (15)
working days of receipt of the Human Resource Director’s decision at Step 3.
If the grievant or appellant elects final and binding resolution by the City Manager, the
City Manager will choose the methods he or she considers appropriate to review and
settle the grievance or appeal of disciplinary action. The City Manager shall render a
written decision to all parties directly involved within fifteen (15) working days after
receiving the grievant/appellant’s appeal.
If the grievant/appellant elects final and binding arbitration in accordance with this
provision, the parties shall mutually select an arbitrator within 90 days from the date of
receipt of the written request for appeal. In the event the parties cannot agree on an
arbitrator, they shall mutually request a panel of five arbitrators from the California State
Conciliation Service or from the American Arbitration Association if either party objects
to the State Conciliation Service, and select an arbitrator by the alternate strike method.
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The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine
compliance with the provisions of this Memorandum of Agreement and such Merit
System Rules, regulations, policies, procedures, City ordinances, resolutions relating to
terms or conditions of employment, wages or fringe benefits, as may hereafter be in
effect in the City insofar as may be necessary to the determination of grievances or appeal
of disciplinary action appealed to the arbitrator. The arbitrator shall be without power to
make any decision contrary to, or inconsistent with or modifying in any way, the terms of
this Memorandum Of Agreement. The arbitrator shall be without authority to require
the City to delegate or relinquish any powers which by State law or City Charter the City
cannot delegate or relinquish. Where either party seeks arbitration and the other party
claims the matter is not subject to the arbitration provisions of this Memorandum of
Agreement, the issue of arbitrability shall first be decided by the arbitrator using the
standards and criteria set forth in Article XX and without regard to the merits of the
grievance or appeal of disciplinary action. If the issue is held to be arbitrable, the
arbitration proceedings will be recessed for up to five working days during which the
parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator
will resume the hearing and hear and resolve the issue on the merits. Copies of the
arbitrator's decision shall be submitted to the City, the aggrieved employee and the
Union. All direct costs emanating from the arbitration procedure shall be shared equally
by the City and the aggrieved employee or the Union.
ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION
The City has the right to discipline, demote, or discharge employees for cause. Non-
probationary employees whose work or conduct is unsatisfactory but not sufficiently
deficient to warrant discipline, demotion, or discharge will be given a written notification
of unsatisfactory work or conduct and an opportunity to improve. Failure to correct
deficiencies and improve to meet standards may result in discipline, demotion, or
discharge. Discipline is defined as suspensions without pay, reduction in pay, demotion,
or discharge. Coaching, mentoring, verbal counseling, written counseling, reprimands,
transfers, reassignments, layoffs, and negative comments in performance evaluations are
not discipline and shall not be subject to the requirements of this Article.
Section 1 - Preliminary Notice of Discipline.
Prior to imposing disciplinary action, a supervisor shall provide an employee with
preliminary written notice of the proposed disciplinary action. The notice of proposed
disciplinary action must be in writing and served on the employee in person or by
registered mail or Fed-Ex. The notice of disciplinary action shall include:
a) Statement of the violations upon which the disciplinary action is based;
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b) Intended effective date of the action;
c) Statement of the cause thereof;
d) Statement in ordinary and concise language of the act or the omissions upon which
the causes are based;
e) Copies of any documents or other written materials upon which the disciplinary action
was fully or in part based.
f) Statement advising the employee of his/her right to appeal from such action, and the
right to union representation and a statement that in order to exercise your rights to
union representation the employee may contact their SEIU representative or their
steward.
g) The date and location of the Skelly meeting and the name of the Skelly Officer
Section 2 - Skelly Meeting. The employee shall have the right to respond informally to
the charges either verbally or in writing before the discipline is imposed. The employee
shall have fifteen (15) working days from receipt of the notice to request this pre-
disciplinary administrative review. The employee may request a reasonable extension of
the time to respond for justifiable reasons. The Skelly meeting to listen to the verbal
responses shall be scheduled with a City representative who is not the manager
recommending the discipline (the “Skelly Officer”). The Skelly Officer shall render a final
written decision (the “post-Skelly decision”) within fifteen (15) working days of receiving
the employee’s response, if any, and shall deliver the post-Skelly decision to the employee
by personal delivery or registered mail. The Skelly Officer may sustain, modify, or
overturn the recommended disciplinary action. If the Skelly Officer sustains or modifies
the disciplinary action, the action may be imposed after the post-Skelly decision is
delivered to the employee.
Section 3 – Appeals. Appeals of disciplinary action should be processed through the
procedures outlined in Steps 2-4 of the grievance appeal of disciplinary action procedure
(Article XIX, Section 4.)
ARTICLE XXI - NO ABROGATION OF RIGHTS
The parties acknowledge that Management rights as indicated in Section 1207D of the
Merit System Rules and Regulations and all applicable State laws are neither abrogated
nor made subject to negotiation by adoption of this MOA.
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ARTICLE XXII - OUTSIDE EMPLOYMENT
The provisions of City of Palo Alto Policy and Procedure 2-05: Outside Employment and
Article 4.7 of the Government Code of the State of California (Gov’t, Code § 1125 – 1129)
will govern the determination of incompatible outside employment.
ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS
The City agrees that it will not lock out employees, and the Union agrees that it will not
engage in any concerted work stoppage or slowdown during the term of this MOA. An
employee shall not have the right to recognize the picket line of a labor organization when
performing duties of an emergency nature.
ARTICLE XXIV - PROVISIONS OF THE LAW
Section 1 - Conformity and Separability of Provisions. This Memorandum of Agreement
is subject to all current and future applicable Federal and State laws and Federal and State
regulations and the Charter of the City of Palo Alto and the Constitution of the State of
California. Should any of the provisions herein contained be rendered or declared invalid
by reason of any existing State or Federal legislation, such invalidation of such part or
portion of this Memorandum of Agreement shall not invalidate the remaining portions
hereof, and they shall remain in full force and effect, insofar as such remaining portions
are severable.
Section 2 - Merit Rules and Regulations. This Memorandum of Agreement shall become
a part of the City of Palo Alto Merit Rules and Regulations applying to employees assigned
to classifications in the SEIU unit. As applied to employees assigned to the SEIU unit, this
Memorandum of Agreement shall prevail over any conflicting Merit Rules and
Regulations.
Section 3 - Resolution. The City and the Union agree by signing this Memorandum of
Agreement that the wages, hours, rights and working conditions contained herein shall
be continued in full force during the term of this Memorandum of Agreement except as
otherwise provided for in the Memorandum of Agreement and shall be binding on both
the City and the Union upon ratification by the Council of the City of Palo Alto and upon
ratification by Union membership.
ARTICLE XXV - TUITION REIMBURSEMENT
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The City shall fund a Tuition and Student Loan Reimbursement Program for use by
employees in the unit. This program will provide reimbursement to eligible SEIU
members for successful completion of undergraduate, graduate level courses, collegiate
level certification courses or any other pre-approved training related to employment
opportunities with the City.
The City will fund up to $100,000 for each fiscal year of the term of this MOA. The
maximum reimbursement will be one thousand five hundred dollars ($1,500) total per
employee for each fiscal year of this MOA. Monies expended on this program will be
subject to appropriate IRS regulations. Requests for reimbursement are on a first come
first serve basis and must be submitted within thirty (30) calendar days of the end of the
fiscal year to be allocated to the fiscal year.
The Tuition Reimbursement will be provided if the following conditions are met:
a. Courses, classes or trainings must be pre-approved as job related by the division
head or designee prior to the start date. Employees may appeal a denial to the
Human Resources Director or designee within 5 working days of receipt of denial,
whose decision shall be final.
b. Eligible expenses include required textbooks, tuition, fees, lab fees and
equipment, but will not include parking fees or health fees related to enrollment.
c. Employees must attain a final grade of “C” or better for both undergraduate and
graduate work. Courses providing a “pass/fail” must achieve a “pass” to qualify
for reimbursement. Ungraded courses, classes or trainings will be reimbursed
based on proof of successful completion.
d. Requests for reimbursement shall be submitted in accordance with the
procedures developed by the City. A request for reimbursement will not be
considered submitted until it includes the relevant receipts and proof that the
necessary grade or successful completion was earned.
e. Courses must be taken on the employee’s off duty hours, unless prior approval is
received from the employee’s supervisor.
Student Loan Reimbursement conditions:
a. Employees must have an active student loan in good standing.
b. Employees must successfully complete the secondary education with which the
student loan was incurred, and must provide proof of successful graduation or
completion.
c. Requests for reimbursement shall be submitted in accordance with the
procedures developed by the City. A request for reimbursement will not be
considered submitted until it includes proof of payment towards the employee’s
student loan within the eligible fiscal year.
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ARTICLE XXVI - COST REDUCTION PROGRAMS
During the term of this agreement, the Union will aggressively assist Management in
developing cost reduction programs. Such programs may include voluntary reduced
hours/pay after this concept is studied by Management, and with such application as may
be approved by Management.
ARTICLE XXVII – TERM
The Term of this Memorandum of Agreement shall commence on January 30, 2023 and
shall expire on December 31, 2024. The Parties agree that they will commence
negotiations over a successor to this Memorandum of Agreement no later than one
hundred eighty (180) days (July 4, 2024) before its expiration. If, at the time this
Memorandum of Agreement would otherwise expire, the parties are continuing to
negotiate a successor Memorandum of Agreement, upon mutual agreement the terms
and conditions of this Memorandum will continue in effect.
EXECUTED:
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FOR LOCAL 521, SEIU, CTW: FOR CITY OF PALO ALTO:
_______________________________ _______________________________
__
__
_____ __
__
___
__________
__________
__________
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APPENDIX A
The salary rates of bargaining unit classifications will be as set forth in Appendix A of this
MOA
Compensation:
a) General Salary Increase: Effective the first full pay period including the adoption of the
MOA, the salary ranges of all represented classifications will be increased by four percent
(4.0%).
b) Market Adjustment: Effective the first full pay period including the adoption of the
MOA, the salary ranges of all represented classifications will be increased in an amount
sufficient to bring them to 75th percentile of market median before application of the
General Salary Increase as determined by the City’s market study.
c) One-time Lump Sum Bonus: One-time discretionary cash payment of $1,200 for each
for regular employee who is a member of the bargaining unit and in paid status in the first
full pay period including Council adoption of this MOA (prorated for part time employees).
Parties understand this to be non-pensionable compensation and excludable from regular
rate of pay.
d) General Salary Increase: Effective the first full pay period following January 1, 2024 or
the adoption of the MOA whichever is later, salary ranges of all represented classifications
will be increased by four percent (4.0%).
Recruitment and Retention
To address current market conditions and specific benefits provided by competing
employers to employees in the electrical lineperson category, the parties agree to the
following:
1) Standby Compensation. Employees in the Lineperson and Water/Gas/Wastewater Job
Families who are assigned to standby duty shall be compensated at the daily rates
established below:
Monday through Friday two (2) hours at their straight time regular rate of pay
Saturday, Sunday, Holidays three (3) hours at their straight time regular rate of pay
2) Overtime Compensation. Employees in the Electrical Lineperson/Cable Splicer job
family will be paid two times the employees applicable salary for all overtime work.
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APPENDIX B. APPRENTICESHIPS
Note: Employees hired into a Lineperson Apprenticeship position on or before April 11,
2016 will continue to progress through the Apprenticeship steps and into the Lineperson
journey rate at the same intervals as existed before April 11, 2016 in the Apprenticeship
Program.
Substation Electrician, Street Light /Traffic Signal / Fiber Technician, Lineperson/Cable
Splicer APPRENTICE:
Upon completion, may lead to Journey level position. The Utilities Department has
formalized the Apprenticeship programs in the Electric Section to develop journey level
electricians/technicians and lineperson/cable splicers.
The following are basic concepts/principles to be incorporated:
1. The administration and operation of the Apprenticeship programs will be managed by
the Apprenticeship Committee, which will be selected by the Manager of Electric
Operations and comprised of two (2) bargaining unit members designated by Local 521
and two (2) Utility Supervisors and the Manager of Electric Operations. The Manager of
Electric Operations will maintain oversight of the program. The Apprenticeship Program
will be subject to review and approval by the State of California Department of Industrial
Relations Division of Apprenticeship Standards.
2. The journey level position will not be a promotional opportunity for anyone other than
the apprentice under filling the position, as long as that apprentice is successfully
progressing through the program.
3. Employees within Electric Operations, who qualify, will be given first consideration for
the apprentice position prior to other City classifications or recruiting from outside the
City.
4. A letter of agreement will be entered into by the apprentice and the City identifying
the terms and conditions of the program.
5. The program will normally require eight thousand (8000) work hours (48 months) to
complete for Lineperson Cable Splicer and six thousand (6000) work hours (36 months)
for Substation Electrician, Street Light /Traffic Signal / Fiber Technician positions.
6. Normal progress through the program will be in periodic increments with formal
evaluations.
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7. The salary steps for the Substation Electrician, Street Light /Traffic Signal / Fiber
Technician and Lineperson Cable Splicer apprenticeships are outlined in the State of
California Department of Industrial Relations Division of Apprenticeship Standards.
Employees hired into a Lineperson/Cable Splicer Apprenticeship position will be paid at
step 1 of the Lineperson/Cable Splicer Apprentice step range. Upon completion of all
course work requirements outlined in the apprentice syllabus, the employee will progress
as follows:
Month Step
Step
Intervals
1-12 1 12 months
13-24 2 12 months
25-36 3 12 months
37-42 4 6 months
43-48 5 6 months
Upon successful completion of the fourth year following commencement of the
Apprenticeship, the employee will be reclassified/progressed to Lineperson / Cable
splicer Journey Level and paid at the top step (step 5) of the journeyman rate. In any case,
successful completion of the program and movement into the Lineperson Cable Splicer
journey level classification will not transpire until the employee has fulfilled all of the
requirements outlined in the program content description and received the
recommendation of the Apprenticeship Committee.
Employees hired into a Substation Electrician or Street Light /Traffic Signal / Fiber
Technician Apprenticeship position will be paid at step 1 of the Substation Electrician or
Street Light /Traffic Signal / Fiber Technician step range. Upon completion of all
coursework requirements outlined in the apprentice syllabus, the employee will progress
as follows:
Month Step
1-6 1
7-12 2
13-18 3
19-24 4
25-36 5
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Upon successful completion of the Apprenticeship, the employee will be reclassified /
progressed to Substation Electrician or Street Light /Traffic Signal / Fiber Technician
Journey Level and paid at the fifth step (step 5) of the journeyman rate.
In any case, successful completion of the program and movement into the Substation
Electrician or Street Light /Traffic Signal / Fiber Technician journey Level classification will
not transpire until the employee has fulfilled all of the requirements outlined in the
program content description and received the recommendation of the Apprenticeship
Committee.
8. Should an apprentice prove deficient in progressing through either the coursework or
on-the-job training portion of an apprenticeship step, the apprentice shall not progress
to the next higher step nor shall the apprentice receive the step increase in wages. The
apprentice as described above may at the discretion of the appropriate Division Manager,
be granted a three (3) month extension to eliminate the deficiency and be allowed to
progress to the next higher step in the apprenticeship and receive the step increase in
wages.
*Note: A maximum of two (2) time extensions may be granted during the term of the
apprenticeship. Any apprentice that is removed due to documented deficiency shall have
their employment terminated.
9. The City and the Union agree to review or develop job descriptions to better reflect the
qualification necessary to attract and retain successful candidates for this program. It is
further agreed that the job descriptions will not warrant additional compensation.
10. Training will consist of on-the-job (OJT) and required training as outlined in the
program, Training costs will be funded by departmental funds and employees will be
compensated their normal wages while attending required training. Personal time spent
in off-the-job training and/or study will not be compensated.
11. The apprentice will be under the continuing guidance of an appropriately qualified
journey level person during OJT. Such journey level persons will be assigned by
Management from among volunteers who will not receive additional compensation.
12. Qualifications/progress will be verified by appropriately kept records.
13. Unless specifically stated otherwise, regular City personnel policies and MOA
provisions will apply to the apprenticeship program.
14. This program may become a conceptual model for apprenticeships in other divisions
or departments.
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City of Palo Alto and SEIU Local 521
January 30, 2023- December 31, 2024
Page 70 of 79
APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION
Section 1. Exceptions to Standard Workday or Work Week for SEIU Representation Unit:
Library Department
Coordinator, Library Programs
Librarian
Senior Librarian
Library Specialist
Library Associate
In a given workweek, staff may work three eight-hour days, one seven-hour day, and one
nine-hour day. On a voluntary basis, staff may work five non-consecutive days within
seven.
Section 2. Rules Governing Flexible Work Hours.
These rules and procedures are established pursuant to Article VI, Section 8, and are an
application of Article VIII, Sections 1, 2, and 3 of the Memorandum of Agreement to the
classifications of Coordinator, Recreation Programs; Producer, Arts & Sciences Programs;
Program Assistant; Theater Specialist, in the Recreation and Arts & Sciences Divisions of
the Community Services Department, and the classifications of Associate Planner,
Building Planning Technician, CDBG Coordinator, Engineer, , Planner, and Senior Planner
in the Planning and Community Environment Department.
a) Flexible Work Schedule
1. Employees in the covered classification shall be permitted to arrange flexible work
schedules with division approval, providing that such schedules shall include forty
(40) hours per week.
2. Standard daily office hours are typically Monday through Friday, between the
hours of 8:00 a.m. and 6:00 p.m. as determined by the Department. Flexible hours
may occur for supervision of, and/or attendance at, evening programs, meetings,
weekend events, or other programs.
b) Overtime
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January 30, 2023- December 31, 2024
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1. Emergency call-out work shall be defined as overtime work and compensated per
standard City practices.
2. If the need arises for overtime work due to an unusual circumstance calling for
extra hours or due to a special event, compensation shall be allowed with prior
approval of the Director of Recreation, Director of Arts and Sciences, or the
Director of Planning and Community Environment, and shall be compensated for,
as spelled out in the Memorandum of Agreement.
Section 3. 2080 Plan
a) Either the Union or the City may withdraw from the Plan by giving the other party 30
calendar days written notice. In the event of termination of the plan, the covered
classifications will return to an 8-hour or other authorized workday as provided under
Article VIII, Section 1, of this Memorandum of Agreement.
b) Provisions of the 2080 Plan are as follows. To the extent that these provisions are in
conflict with other provisions of the Memorandum of Agreement, these provisions
will prevail.
c) The 2080 Plan or “12 hours per Shift Schedule” is an authorized work schedule for the
Utility Systems Operators and Water Quality Control Plant Operators.
2080 Plan
Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For
scheduling purposes, and subject to the Merit System Rules and Regulations, the
employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks
at the normal number of hours worked per week. Any employee covered by the Plan who
works up to 2,080 hours per year is compensated for all hours worked at the agreed upon
rate. The City must pay overtime for all hours worked in excess of 12 in any workday, 56
hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of
overtime will be at time and one-half the employee's regular rate of pay (or current
contract overtime rate, if different).
Shift Schedule
The shift schedules combined must provide full 24-hour, seven (7) days per week
coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule
shall be a rotating schedule. The Utility Systems Operators’ shift schedule will reach the
equivalent of 40 hours per week in five weeks. The 12-hour shifts begin at 7:00 a.m. and
7:00 p.m. The Relief shift shall begin at 7:00 a.m. and end at 3:00 p.m. with lunch taken
while working. The shift schedule shall be rotating schedule. The Water Quality Control
Plant Operators’ shift schedule will reach the equivalent of 40 hours per week in two
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City of Palo Alto and SEIU Local 521
January 30, 2023- December 31, 2024
Page 72 of 79
weeks. There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth
shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon on the fourth
day.
Pay Period
Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay
periods and workweek for the Water Quality Control Plan Operators will begin Saturday
at 6:01 a.m.
Wages
Wages will be based on the City of Palo Alto Compensation Plan, which may vary from
time to time as mutually agreed upon.
Overtime
Under the 2080 Plan, the City will pay overtime for all hours worked in excess of 12 in any
workday, 56 in any work week, or 2080 in 52 weeks, as the case may be.
Overtime will also be paid for hours worked when an employee is called in to work other
than their regularly-scheduled shift. The overtime rate of pay will be one and one-half
times (or current contract overtime rate, if different) of the employee's regular rate of
pay. All overtime worked will be paid to the employee. No compensatory time off for
overtime will be allowed with the exception of Water Quality Control Operations.
Relief Employees
This provision only applies to the Utility Systems Operators. The five Operators share the
relief week evenly as they rotate through the five week cycle. Relief employee(s) will be
used within the 12-hours shift schedule only when relieving for the System Operators on
shift. When not relieving, they will work four eight-hour shifts.
When a vacation relief week results in a 36-hour or 48-hour week, the operator working
said week shall be paid at one and one-half (1½) time their normal rate of pay for hours
that exceed thirty two (32) hours.
Relief Duties
This provision only applies to the Utility Systems Operators. An employee who is
scheduled to perform relief duties shall be available for duty in revolving shifts on any day
of the week and may be assigned for relief in any shift without advance notice. Relief
employees will be paid standby pay during their relief week.
Standby
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January 30, 2023- December 31, 2024
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This provision only applies to the Utility Systems Operators. An employee who is on relief
duties is covering standby, and will be compensated according to Article VIII, Section 7 (a)
of the Memorandum of Agreement. If the relief employee is on vacation or otherwise
unavailable for relief duties, the employee(s) on their three or four-day off period will be
first on standby.
Management reserves the right to utilize Management personnel as Operators on a short-
term, as needed basis, if no Operator is available.
Filling Vacant Positions
If the City elects to fill a vacancy other than by reassignment of the shift or the utilization
of prior or succeeding shift personnel, the following procedure shall be used:
Employees will be called according to their position on the Pre-arranged Overtime List
(POL), with the person with the lowest balance being the first one called. The purpose of
the POL is to fairly distribute the available opportunities. If an employee turns down the
overtime, that amount will be added to the employee's POL balance. If an employee
cannot be contacted for such assignment, the employee will not have any overtime added
to their POL account balance.
Shift Changes
Shift changes caused by scheduled time off or sick leave will not be considered an official
change in shift.
Maximum Hours Worked
No employee shall work more than 18 consecutive hours.
Rest Period
In a 12-hour workday, employees are entitled to a rest period of 8 consecutive hours after
working 6 hours overtime during the 12 hours immediately before the regularly scheduled
hours of work on a workday or non-workday.
Holidays
Employees who begin their day or night shift on an observed holiday will receive overtime
premium in accordance with Article X, Section 3 of the Memorandum of Agreement.
Employees who work a schedule where a regular day off falls on a holiday will be paid for
the hours they would have normally worked on that day.
Employees working for Water Quality Control Operations may accrue holiday time
convertible to vacation.
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City of Palo Alto and SEIU Local 521
January 30, 2023- December 31, 2024
Page 74 of 79
Sick Leave
Sick leave will be earned as indicated in Article XII, Section 1(a) of this MOA, and shall be
charged in increments of one hour.
Floating Days Off
Floating holidays will be made available to eligible employees and used pursuant to Article
X, Section 5.
Vacation
An employee's total entitlement will be converted to hours (eight hours = one day). A
workday will consist of 12 hours, and employees taking vacation will be charged 12 hours
of use. Two week notification is required for any scheduled time off. Only one person at
a time may be scheduled off.
It is the intention of the City that vacation be taken in units of one work week; however,
with approval of his/her supervisor, an employee may use his/her accrued vacation in
units of less than one work week.
Meals
Shift employees shall be permitted to eat their meals during work hours and shall not be
allowed additional time, therefore at City expense.
Shift Premium
Shift premium will be handled in accordance with the current Memorandum of
Agreement between the City and the Union, Article VIII, Section 8.
Jury Duty
Time off for jury duty which occurs on a regularly scheduled workday will result in the
employee being credited with up to 12 hours worked, for pay purposes. Employees called
for jury duty who are working the evening portion of the 12-hour schedule will be placed,
for payroll and scheduling purposes, on the day shift for each scheduled day such
employee is required to report for jury duty, and will not be required to work the evening
12-hour shift before or after being required to report for jury duty. However, such
employee shall return to work on the day shift upon being released from such duty if
there are at least four hours remaining prior to the end of the day shift. All other
provisions of Article XII, Section 5, of the current Memorandum of Agreement shall apply.
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City of Palo Alto and SEIU Local 521
January 30, 2023- December 31, 2024
Page 75 of 79
APPENDIX D. IN-LIEU PREMIUMS
1. For employees in the following operations assigned to work schedules other than
Monday through Friday, the calendar day will be considered the holiday for premium
pay of in-lieu scheduling purposes:
Communications
Water Quality Control
Animal Control
Golf Course
Utilities Services
Landfill
Open Space
Electric System Operator
If December 24 and 31 fall on Sunday, then the preceding Friday will be designated
for purposes of excused time off, except in the case of Community Services staff who
may be scheduled to work on Saturday, in which case Saturday will be designated for
purposes of excused time off. For Open Space and Library personnel, designation of
excused time off will be based on Park and Library schedules and employee
preference.
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City of Palo Alto and SEIU Local 521
January 30, 2023- December 31, 2024
Page 76 of 79
APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS
1. Promotional opportunities within the Communications Division will be carried out in
compliance with procedures set forth in Article VI, Section 5, of the Memorandum of
Agreement between the City and SEIU Local 521, except that:
a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined
as Division Seniority.
• Division Seniority, for the purposes of shift scheduling, vacation scheduling and
promotional opportunities will be calculated from an employee’s first day of
employment in the division. Any unpaid leave that is not protected under FMLA
or CFRA will not count as service days towards seniority, unpaid furlough, and
unpaid closure time. Other areas of seniority not mentioned in this article will
follow Article 6, Section 5, e “Seniority” of the Memorandum of Agreement
between SEIU 521 and the City of Palo Alto.
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City of Palo Alto and SEIU Local 521
January 30, 2023- December 31, 2024
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APPENDIX F. RECOVERY OF CITY TRAINING COSTS
In recognition of the extended training provided to affected employees, the Parties agree
that the City may recover up to thirty percent (30%) of its cost for training employees,
hired on or after July 1, 2012, in all Utilities Apprentice classifications and in the Park
Ranger Apprentice classifications if the employee voluntarily terminates from the City or
abandons his or her City employment before completing three years of City service in the
Journeyman classification or Park Ranger classification. The amount recovered shall
reasonably reflect the City’s cost for the training, but will exclude all wage or benefit costs,
and will be prorated to reflect the portion of the thirty-six (36) month post-training service
period remaining at the time of the employee’s termination.
As of July 1, 2015 thirty percent (30%) of the City’s average cost for training employees
in:
• Lineperson/Cable Splicer Apprenticeship Program is $5600.00
• For the Field Service Representative, the City’s two year training cost is $ 6,000
• For Substation Electrician Apprenticeship Program is $4800.00
• For Street Lighting / Traffic Signals / fiber Apprentice program is: $1800.00
• For Park Ranger, the City’s two-year training cost is:$6,300
The employee will be required to sign an agreement providing for reimbursement to the
City as provided above on the form attached hereto as Appendix H.
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City of Palo Alto and SEIU Local 521
January 30, 2023- December 31, 2024
Page 78 of 79
APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT
This Agreement is entered into between ___________ (“Employee”) and the City of Palo
Alto (the “City”), as authorized by the Memorandum of Agreement between the City
and SEIU Local 521.
RECITALS
A. The purpose of this Agreement is to limit the City’s risk that it will invest
substantial sums in the Employee’s training but potentially lose the value of that
training if the employee terminates without rendering substantial journey level
service to the City after training.
B. The City may require reimbursement from Employee of thirty percent (30%) of the
total training cost for _______position, subject to abatement when specified
service requirements are met.
C. On or about (date) City extended to Employee a conditional offer of
employment in the position of _________(position), subject to Employee’s
agreement to complete the training necessary to perform the duties of _______
(position), under the terms of the training program. The ______(position)
requires [description of training], which as of July 1, 2015 cost the City
approximately $ over the course of the training.
D. This agreement sets forth the Employee’s agreement to reimburse the City for the
City’s investment in the Employee’s training if the employee voluntarily
terminates from the City prior to the completion of thirty-six months of service
following successful completion of the training.
THEREFORE, the Parties agree to the terms set forth below:
By signing this agreement, the Employee understands that s/he is bound by agrees to the
following terms:
1. ____________________________________ (hereafter “Employee”) agrees that
in training Employee for the position of
_________________________________________, the City of Palo Alto
(hereafter “City”) incurs a total cost of $___________.
2. Employee agrees that amounts recoverable under this agreement do not include
Employee wage or benefit costs.
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January 30, 2023- December 31, 2024
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3. Employee agrees that in the event he/she voluntarily terminates or abandons his
or her employment from the City prior to the completion of thirty-six (36) months
of service following the successful completion of his or her apprenticeship,
he/she will repay the City for the cost of training noted above, prorated to reflect
the months of service the Employee has completed following successful
completion of their training. Employee agrees that for the purpose of this
agreement, “time of service” shall begin on the date following the successful
completion of the Employee’s training.
4. Employee agrees that the aggregate amount of repayment due will be determined
based upon the attached proration table.
5. Employee agrees that repayment shall be due and made in equal monthly
installments over the twelve (12) months immediately following termination, on
the first of each such month.
6. If Employee does not fully reimburse the City for the amounts due when due, the
entire aggregate amount owed will become immediately due, the employee will
be deemed in default on this agreement and the City may initiate legal
proceedings to collect said amounts. Employee will be responsible for all
reasonable collection costs and attorney fees incurred by the City in undertaking
such proceedings. The City may elect to forbear taking such action to allow
Employee the opportunity to become current on the debt. Such forbearance will
not alter the Employee’s default status or adversely affecting the City’s right to
later initiate proceedings for recovery pursuant to this Agreement.
7. This agreement shall be effective on the date listed below.
DATED: ___________________ ______________________________________
Employee
______________________________________
Title, City of Palo Alto
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MEMORANDUM OF AGREEMENT
Between
CITY OF PALO ALTO and
I.A.F.F. LOCAL 1319
October 1, 2018January 30, 2023 – June 30, 20251
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PREAMBLE __________________________________________________________ 7
ARTICLE I - RECOGNITION _____________________________________________ 7
Section 1. Recognition. ______________________________________________________ 7
ARTICLE II - NO DISCRIMINATION _______________________________________ 7
Section 1. No Discrimination. __________________________________________________ 7
Section 2. Free Choice. ______________________________________________________ 7
Section 3. Human Relations Committee. _________________________________________ 7
ARTICLE III - PAYROLL DEDUCTIONS ____________________________________ 7
Section 1. Payroll Deductions and Written Authorization. ____________________________ 8
Section 2. Certification of Union Membership _____________________________________ 8
Section 3. Indemnification ____________________________________________________ 8
ARTICLE IV - UNION ACTIVITIES ________________________________________ 8
Section 1. On-Duty Time. _____________________________________________________ 8
Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. ______________________________ 8
Section 3. Use of Meeting Places. ______________________________________________ 9
ARTICLE V - NO STRIKES ______________________________________________ 9
Section 1. No Strikes. ________________________________________________________ 9
ARTICLE VI - PROBATIONARY PERIOD __________________________________ 9
Section 2. Part of Testing Process. _____________________________________________ 9
Section 3. Suspension or Termination. __________________________________________ 9
ARTICLE VII - SALARY PROVISIONS _____________________________________ 9
Section 1. Base Wage Rates. _________________________________________________ 9
Section 2. Out-of-Class Compensation. _________________________________________ 11
Section 3. Pay for Court Appearance. __________________________________________ 12
Section 4. Classifications ____________________________________________________ 12
ARTICLE VIII - PAY DIFFERENTIALS ____________________________________ 12
Section 1. Paramedic Differential. _____________________________________________ 13
Section 2. Haz Mat Differential. _______________________________________________ 13
Section 3. Fire Inspector Differential. __________________________________________ 13
Section 4. EMT Differential. __________________________________________________ 13
Section 5. Bilingual Pay _____________________________________________________ 13
ARTICLE IX - HOLIDAYS ______________________________________________ 14
Section 1. Named Holidays. __________________________________________________ 14
Section 2. Conditions. ______________________________________________________ 15
ARTICLE X - OVERTIME COMPENSATION _______________________________ 15
Section 1. Compensation. ___________________________________________________ 15
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ARTICLE XI - APPARATUS STAFFING ___________________________________ 16
ARTICLE XII - FIRE DEPARTMENT PROGRAMS ___________________________ 16
Section 1. Programs. _______________________________________________________ 16
ARTICLE XIII - WORK ASSIGNMENTS AND TRANSFERS ___________________ 16
Section 1. Shipouts. _______________________________________________________ 17
Section 2. Vacation Relief Positions. ___________________________________________ 17
Section 3. Transfer Requests. ________________________________________________ 17
Section 4. Special Assignments. ______________________________________________ 18
Section 5. Continuous Hourly Service. __________________________________________ 18
ARTICLE XIV - TRAINING COORDINATION _______________________________ 18
Section 1.Coordination ______________________________________________________ 18
ARTICLE XV - PARAMEDIC ASSIGNMENT _______________________________ 18
Section 1. Limit of Eligibility. __________________________________________________ 18
Section 2. Additional Candidate Training. _______________________________________ 18
Section 3. Incentives. _______________________________________________________ 18
Section 4. Proctoring. _______________________________________________________ 19
Section 5. Field Training Stipend. _____________________________________________ 19
ARTICLE XVI - PROMOTION ___________________________________________ 19
Section 1. Promotion Step Level. ______________________________________________ 19
Section 2. Promotion Process Information. ______________________________________ 19
ARTICLE XVII - REDUCTION IN FORCE __________________________________ 19
Section 1. Order of Reduction. ________________________________________________ 19
ARTICLE XVIII - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY _____ 19
Section 1. In Case of Emergency ______________________________________________ 20
ARTICLE XIX - HEALTH BENEFITS ______________________________________ 20
Section 1. Maintenance of Levels _____________________________________________ 20
Section 2. Vision Care. ______________________________________________________ 20
Section 3. PEMHCA Health Plan. _____________________________________________ 20
ARTICLE XX - DENTAL BENEFITS ______________________________________ 22
Section 1. Level of Benefits. __________________________________________________ 22
Section 2. Premiums. _______________________________________________________ 22
ARTICLE XXI - LIFE INSURANCE _______________________________________ 22
Section 1. Premiums. _______________________________________________________ 22
ARTICLE XXII - RETIREMENT BENEFITS _________________________________ 23
Section 1. PERS Retirement Formula. __________________________________________ 23
Section 2. PERS Member Contribution. ________________________________________ 23
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Section 3. Additional Employee PERS contributions _______________________________ 24
Section 4. Option 2 Death Benefit. _____________________________________________ 24
Section 5. Military Service Credit. _____________________________________________ 24
Section 6. 1959 Survivor Benefit. _____________________________________________ 24
Section 7. Employer Contributions to 457 Plan ___________________________________ 24
ARTICLE XXIII - RETIREMENT MEDICAL PLAN ___________________________ 25
Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: ____ 25
Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On
Or After January 1, 2004: ____________________________________________________ 25
ARTICLE XXIV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) ________ 25
Section 1. DCAP. __________________________________________________________ 25
ARTICLE XXV - VACATION ACCRUAL ___________________________________ 26
Section 1. Accrual Rate. _____________________________________________________ 26
Section 2. Unused At Termination. _____________________________________________ 26
Section 3. Limits. __________________________________________________________ 26
ARTICLE XXVI - USE OF VACATION ____________________________________ 26
Section 1. Maximum Number of Slots __________________________________________ 26
Section 2. Approvals. _______________________________________________________ 26
Section 3. Vacation Pay. ____________________________________________________ 27
Section 4. Illness on Vacation. ________________________________________________ 27
Section 5. When to be Taken. ________________________________________________ 27
Section 6. Limitation on Use. _________________________________________________ 27
Section 7. Waiting Period. ___________________________________________________ 27
Section 8. Double Compensation Prohibited. _____________________________________ 27
Section 9. Cash out Option. __________________________________________________ 27
ARTICLE XXVII - SICK LEAVE __________________________________________ 27
Section 1. Statement of Policy. _______________________________________________ 27
Section 2. Eligibility ________________________________________________________ 27
Section 3. Accrual. _________________________________________________________ 27
Section 4. Accumulation. ____________________________________________________ 28
Section 5. Use. ____________________________________________________________ 28
Section 6. Depletion of Sick Leave Benefits. _____________________________________ 28
Section 7. Forfeiture Upon Termination. ________________________________________ 28
Section 8. Payment for Accumulated Sick Leave. _________________________________ 28
Section 9. Personal Business Leave Chargeable to Sick Leave. ______________________ 29
Section 10. Return to Work or Continue Work With Limited Duty. _____________________ 29
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ARTICLE XXVIII - SUBPOENAS _________________________________________ 29
ARTICLE XXIX - WORKERS' COMPENSATION ____________________________ 29
Section 1. Status Reporting While on Disability. __________________________________ 29
ARTICLE XXX - PHYSICAL FITNESS MEDICAL EXAMINATIONS ______________ 30
ARTICLE XXXI- LEAVES OF ABSENCE WITHOUT PAY _____________________ 30
Section 1. Disability. ________________________________________________________ 30
Section 2. Other Leaves. ____________________________________________________ 30
Section 3. Accrued Vacation Credits. ___________________________________________ 30
Section 4. Approval of Department Head ________________________________________ 30
Section 5. Approval by City Manager. __________________________________________ 30
Section 6. Absence Without Leave. ____________________________________________ 30
Section 7. Leave of Absence; Death Outside the Immediate Family. __________________ 30
Section 8. Military Leave of Absence ___________________________________________ 30
Section 9. Use of paid accruals while on leave. ___________________________________ 30
ARTICLE XXXII - LEAVES OF ABSENCE WITH PAY ________________________ 31
Section 1. City Manager Granted Leaves. _______________________________________ 31
Section 2. Council Granted Leave. _____________________________________________ 31
Section 3. Employee's Time Off to Vote. ________________________________________ 31
Section 4. Leaves of Absence; Death in Immediate Family. _________________________ 31
Section 5. Jury Duty; Leave of Absence. ________________________________________ 31
ARTICLE XXXIII – VOLUNTEER LEAVE PROGRAM ________________________ 31
ARTICLE XXXIV- TUITION REIMBURSEMENT _____________________________ 33
Section 1. Options. _________________________________________________________ 33
ARTICLE XXXV - PER DIEM TRAVEL EXPENSES __________________________ 33
Section 1. City Business. ____________________________________________________ 33
ARTICLE XXXVI - HOUSE FUND ITEMS __________________________________ 33
Section 1. Station House Fund. _______________________________________________ 33
Section 2. Non-Food House Items _____________________________________________ 33
ARTICLE XXXVII - PARKING ___________________________________________ 33
Section 1. Entitlements. _____________________________________________________ 33
ARTICLE XXXVIII- GRIEVANCES _______________________________________ 34
Step II ___________________________________________________________________ 35
Step III __________________________________________________________________ 35
Step IV __________________________________________________________________ 35
ARTICLE XXXIX- SAFETY COMMITTEE __________________________________ 36
Section 1. Committee _______________________________________________________ 36
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ARTICLE XL – MISCELLANEOUS _______________________________________ 36
Section 1. T-Shirts. _________________________________________________________ 36
Section 2. Removal of Disciplinary Actions. ______________________________________ 37
ARTICLE XLI - FULL UNDERSTANDING _________________________________ 37
Section 1. Full and Entire Understanding ________________________________________ 37
Section 2. Fair Labor Standards Act. ___________________________________________ 37
Section 3. Severability. ______________________________________________________ 37
Section 4. Good Faith. ______________________________________________________ 37
Section 5. Merit System Rules and Regulations. __________________________________ 37
Section 6. Station Consolidation or Relocation ___________________________________ 37
Section 7. Meet and Confer. __________________________________________________ 37
ARTICLE XLII – 48/96 Work Schedule ___________________________________ 37
ARTICLE XLIII – FUTURE SERVICE DELIVERY MODELS ____________________ 37
ARTICLE XLIV - DURATION ____________________________________________ 38
APPENDIX A ___________________________________ Error! Bookmark not defined.
APPENDIX B ___________________________________ Error! Bookmark not defined.
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MEMORANDUM OF AGREEMENT
CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319
October January 30, 20231, 2018 - June 30, 20251
PREAMBLE
This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to
as the "City", and Local 1319, International Association of Fire Fighters, hereinafter
referred as the "Union", has been prepared and entered into in accordance with Title I,
Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and
Chapter 12 of the City of Palo Alto Merit System Rules and Regulations.
ARTICLE I - RECOGNITION
Section 1. Recognition. The City recognizes the Union as the exclusive representative
of an employee group consisting solely of the classifications of Fire Apparatus Operator,
Fire Fighter, Fire Captain, Fire Captain (forty-hour assignment), Fire Inspector,
Hazardous Materials Specialist, and Hazmat Inspector, who are regularly employed by
the City and others as amended into the representation unit from time to time under
existing law and the Merit System Rules and Regulations.
ARTICLE II - NO DISCRIMINATION
Section 1. No Discrimination. The Union and the City hereby agree that there shall
be no discrimination because of race, color, age, disability, sex, national origin, sexual
orientation, political or religious affiliation under this Agreement. There shall be no
discrimination in employment conditions or treatment of employees on the basis of
membership or non-membership in the Union, or participation in the lawful activities of
the Union.
Section 2. Free Choice. The Union and the City hereby agree to protect the rights of
all employees to exercise their free choice to join the Union and to abide by the express
provisions of applicable State and local laws.
Section 3. Human Relations Committee. A Human Relations Committee will include
up to five members appointed by the Union executive board and at least two members
of management with representation from the Fire and Human Resources Departments.
The committee may make recommendations to management regarding recruitment
outreach, equal employment opportunity and career development programs.
ARTICLE III - PAYROLL DEDUCTIONS
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Section 1. Payroll Deductions and Written Authorization. The City shall deduct
Union membership dues assessments and insurances authorized by the Union. This will
be accomplished by payroll deduction from the bi-weekly pay of member employees.
The dues deduction must be authorized in writing by the employee on a Union
authorization card.
The Union will be the custodian of records for individual employee membership and dues
deduction forms. The Union will maintain authorizations for dues deduction, signed by
the individual from whose salary or wages the deduction or reduction is to be made. The
City will direct employee requests to cancel or change deductions to the Union.
The City shall remit the deducted dues to the Union as soon as possible after deduction.
Section 2. Certification of Union Membership. The Union agrees to provide the City
an initial certified list of members and statement that the Union has and will maintain
written authorizations signed by the individuals from whose wages the Union dues
deductions are to be made. From that point forward the Union will update the list
whenever there are changes.
Section 3. Indemnification. The Union shall indemnify and hold the City harmless
against any liability arising from any claims, demands, or other action relating to this
article. The Union shall comply with all statutory and legal requirements with respect to
this article.
ARTICLE IV - UNION ACTIVITIES
Section 1. On-Duty Time. Local 1319 officers may use a reasonable amount of on- duty
time to attend to Union business specifically related to representation of employees so
long as:
a. Staffing is available
b. Operations are not interrupted
c. Advance approval is obtained from the Battalion Chief or Operations Chief
Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. The Union shall have access
to interoffice mail and existing bulletin boards in unit employee work areas for the
purpose of posting, transmitting, or distributing notice or announcements including
notices of social events, recreational events, Union membership meetings, result of
elections and reports of minutes of Union meetings. Any other material must have prior
approval of the Operations Chief or Fire Chief. Action on approval will be taken within
24 hours of submission.
The Union may send e-mail messages only for the purposes set forth above. The I.T.
Division will maintain the IAFF list. The Union access to e-mail is based on the following
conditions:
a. E-Mails to the IAFF list will be copied to the Fire Chief or Operations Chief at
distribution.
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b. E-Mails to the IAFF list will only be sent by the Executive Board Members.
Section 3. Use of Meeting Places. The Union shall have the right to reserve City
meeting and conference rooms for use during non-working hours or as subject to
Battalion Chief approval. Such meeting places will be made available in conformity with
City regulations and subject to the limitations of prior commitment.
ARTICLE V - NO STRIKES
Section 1. No Strikes. The Union, its representatives, or members, shall not engage in
or cause, instigate, encourage, sanction, or condone a strike, withholding of services,
leave of absence abuse, work stoppage or work slowdown of any kind against the City
of Palo Alto or its citizens by employees covered under this Agreement. No employee
shall refuse to cross any picket line in the conduct of Fire Department business, nor shall
the Union, its representatives or members discriminate in any way toward anyone who
refuses to participate in a strike, or any of the job actions cited above.
ARTICLE VI - PROBATIONARY PERIOD
Section 1. Tentative and Subject to Probationary Period. All original appointments
to regular or part-time municipal service positions shall be tentative and subject to a
probationary period. This probationary period shall include the fire training academiesy
and an additional fourteen (14) months after completion of the academies (including in-
house academy)y, excluding time off for extended leaves of absence.
Section 2. Part of Testing Process. The probationary period shall be regarded as part
of the testing process and shall be utilized for closely observing all aspects of the
employee's qualifications, for ensuring the effective adjustment of a new employee to
the position and for rejecting any probationary employee who, in the opinion of
management, is not suitable to attain permanent status.
Section 3. Suspension or Termination. During the probationary period a new
employee may be suspended or terminated at any time by the appointing authority
without cause and without right of appeal or to submit a grievance. Said employee shall
not have the right to proceed to arbitration on the issue of arbitrability or on the issue of
its constitutional or discovery rights, nor those of any employee by reason of the
foregoing. The Union shall not be a party to any lawsuit relating to the termination of a
probationary employee.
ARTICLE VII - SALARY PROVISIONS
Section 1. Base Wage Rates.
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a. The base wage rates of bargaining unit classifications will be as set forth in
Appendix A of this MOA.
a. Base Salary: Effective the first full pay period following Council adoption, a
three percent (3%) salary increase will be applied to the salary ranges for all
represented classes.
b. Market Increase: Effective the first full pay period including the adoption of
the MOA, the salary ranges of all represented classifications will receive a
market adjustment of five percent (5.0%).Effective the first full pay period
following Council adoption, a two and a half percent (2.5%) salary increase
will be applied to the salary ranges for all represented classes.
Addition of Salary Step: Effective the first full pay period including adoption
of this MOA by City Council, the City will implement a new step 6 (5% above
Step 5) following the same percentage difference as steps 1-5. Any employee
who is already at Step 5 on the date the City Council adopts the MOA will
move to Step 6 effective the first full pay period following City Council
adoption of the MOA. Any employee in the Firefighter classification who is
already at Step 4 on the date the City Council adopts the MOA whichever is
later will move to Step 5 effective the first full pay period following City Council
adoption of the MOA. The employees moved to Step 5 pursuant to this
paragraph will move to Step 6 upon one year of service at Step 5 so long as
they receive a satisfactory performance evaluation.
c. General Salary Increase: Effective the first full pay period following July 1,
2023, the salary ranges of all represented classifications will be increased by
four percent (4.0%).Base Salary: Effective the first full pay period following
July 1, 2019, a three percent (3%) salary increase will be applied to the salary
ranges for all represented classes.
d. General Salary Increase: Effective the first full pay period following July 1,
2024, the salary ranges of all represented classifications will be increased by
four percent (4.0%).Base Salary: Effective the first full pay period following
July 1, 2020, a three percent (3%) salary increase will be applied to the salary
ranges for all represented classes.
Market Adjustment Part 2: Effective the first full pay period following January
1, 2025, the salary ranges of all represented classifications will receive a
market adjustment of two percent (2.0%).
Total Compensation and Survey Database
Management and the Union have agreed to a compensation survey database
structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park
Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San
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Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San
Francisco. Compensation Criteria includes: top step salary, maximum longevity,
maximum education, uniform allowance, EMT differential, Hazmat differential, deferred
compensation, employee pick up of employer pension costs (Negative EPMC), and
maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP).
The database is intended to provide one source of information concerning how the
compensation paid to employees in bargaining unit job classifications compares to that
paid by other employers.
Section 2. Out-of-Class Compensation. All represented employees who are
assigned work in a higher classification for longer than four (4) continuous hours will be
compensated at a higher pay rate for all hours worked during the out-of-class
assignment. This provision applies as follows:
Fire Fighter, Apparatus Operator, Captain or Inspector working in a higher
classification: Step to step. Representation unit classification working as a Battalion
Chief, 10% above 65th-Step Captain, but not to exceed 93% of Battalion Chief control
point. Representation unit classification working in any other management position,
within the range of the management position.
In accordance with Government Code 20480, an employee assigned to work in an “out-
of-class appointment” may not exceed 960 hours worked in the appointment within a
fiscal year if the employee is appointed to an upgraded position or higher classification
that is vacant during recruitment for a permanent appointment. This limitation does not
apply to a position that is temporarily available due to a leave of absence.
Section 3. Salary Steps
Employees in the Firefighter Rank initially appointed to the first step of the salary
range of their classification shall be entitled to a merit increase to step two in the pay
range upon successful completion of six (6) months of service, so long as they
receive a satisfactory performance evaluation. The date of such increase shall be
the first full pay period following the evaluation date.
Employees may be appointed to any step in the salary schedule for their
classification as recommended by the Fire Chief and approved by the City Manager.
Employees appointed to the second step and above are eligible to receive a merit
increase the first full pay period following successful completion of twelve (12)
months of actual service, so long as they receive a satisfactory performance
evaluation.
Each twelve (12) months of actual service after the evaluation date, each employee
receiving a satisfactory performance evaluation shall receive a merit increase to the
next higher step (effective the first full pay period following the evaluation date) until
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the top step of the pay range for the job class has been reached. An employee shall
not receive a merit increase beyond the maximum steps established for the job
classification.
Section 43. Pay for Court Appearance. Sworn Fire personnel appearing in court for
the People shall be compensated as follows:
Period Rate Minimum
a. Appearance on scheduled day
off
Time and one-half at
40-hour rate
4 hours
b. Any or all court time
during scheduled shift
Straight time during
shift at 56-hour rate
None
c. Appearance on scheduled Time and one-half at 2 hours work day but not during
scheduled shift
40-hour rate (2 hour minimum, may
not run into shift time)
The employee shall remit all fees received for such appearances to the City within thirty
days from the termination of his/her services. Compensation for mileage or subsistence
allowance shall not be considered as a fee and shall be retained by the employee.
Section 4. Classifications. The Haz Mat Inspector position will be paid at the same
level as the Fire Inspector (603).
One Fire Captain position will be assigned to a Fire Captain (Forty-hour Assignment)
with the pay set at 5% above the Fire Captain.
ARTICLE VIII - PAY DIFFERENTIALS
Unit employees are eligible for the following pay differentials. Notwithstanding any
provision of this agreement, total differential pay shall not exceed seventeen and a half
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percent (17.5%).
Section 1. Paramedic Differential.
Paramedics who have completed the required training and have been accredited in
accordance with the program and possess their paramedic license, will receive a
12.514% differential in addition to their base salary effective beginning with the date
of assignment to rotational Paramedic duty. The Paramedic salary differential will
terminate with the cessation of assignment to rotational Paramedic duty. The base
salary for Captain classification (including Hazmat Inspector and Fire Inspector) base
salary will be increased 1% in alignment with this differential increase. Employees
assigned to work as an Acting Captain, as described in Article VII, Section 2 above,
shall not be eligible to receive the paramedic differential unless the Acting Captain is
the only paramedic staffing the apparatus during their Acting Captain assignment.
Section 2. Haz Mat Differential.Special Operations Differential (formerly Haz Mat)
A maximum of fifteen eighteen positions who are Haz Mat both members of the
Special Operations group and assigned the Special Operations team trained and
certified will receive a 5% differential in addition to their base salary. Theis differential
does not apply to minimum staffing replacements.
Section 3. Fire Inspector Investigator Differential.
Fire inspector personnel including Haz Mat inspectors and Haz Mat specialists who
have been trained as fire investigators and who are regularly assigned to fire
investigation duties by the Chief shall be compensated with premium pay in the
amount of $500 per month. A maximum of five (5) Fire inspector personnel including
Haz Mat Inspectors who have been trained as Fire investigators and who are
regularly assigned to fire investigation duties by the Chief will receive a 5%
differential in addition to their base salary. The Chief reserves the right to determine
who is regularly assigned to such duties.
Section 4. EMT Differential.
The former 3% EMT differential pay was rolled into base pay constituting the City’s
incentive payment for EMT skills. In the event an employee’s EMT certification
expires, the employee will be taken off the line and placed in an unpaid status until
the employee can submit proof of EMT recertification.
Section 5. Bilingual Pay
Employees who have successfully demonstrated proficiency in any of the approved
languages shall receive a 5% premium in addition to their base salary.
a. Approved Languages:
Spanish, Chinese (Mandarin and Cantonese), Japanese, Tagalog, Korean,
Vietnamese, Russian, American Sign Language, and such other languages
as determined by management.
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b. Proficiency Requirements
The City shall develop and provide a method of testing for proficiency in the
above listed languages. The City will pay for the first test in any approved
language however subsequent testing will be at the employee’s own
expense. An employee must pass the proficiency test to maintain the
bilingual pay. The Fire Chief shall have the authority to require employees
receiving bilingual pay to re-certify with the Human Resources Department as
necessary and reasonable.
c. Arbitratability
The City’s substantive evaluation of an employee’s knowledge of and skills in
a designated second language shall not be subject to the grievance
procedure or review by an arbitrator.
ARTICLE IX - HOLIDAYS
Section 1. Named Holidays.
Holiday pay is compensation for employees who are normally required to work on
an approved holiday because they work in positions that require scheduling staff
without regard to holidays. The following holidays are recognized as municipal
holidays for pay purposes, and regular, employees shall have these days off with pay,
except as otherwise provided in these rules:
January 1 Veterans’ Day, November 11
Third Monday in January Thanksgiving Day
Third Monday in February Day after Thanksgiving Day
Last Monday in May December 25
July 4th Either December 24, or December 31 as provided below
First Monday in September
Second Monday in October
Floating Holiday: In addition to the paid holidays listed above, employees shall be excused
with pay for one full work shift as a day of reflection (floating holiday) per calendar year.
Eligible employees may use the floating holiday on any day mutually agreed by the employee
and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day (June 19) or
Cesar Chavez/Dolores Huerta Day (March 31).Floating Holiday(Day of Reflection recognition for
Juneteenth Freedom Day or Cesar Chavez/Dolores Huerta Day) Day of Reflection not used by the end of the
fiscal year will be deemed forfeited and have no cash value.
161.5 hours are paid annually to an employee at a rate of 6.21 hours each pay
period. Shift personnel shall receive pay in lieu of taking paid leave for accrued
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holidays. Such paid hours are in addition to the normal biweekly base pay. Shift
personnel will be paid 6.21 hours of in lieu of holiday pay each pay period. Hours
are prorated and accrued based on hours actually worked.
149.5 hours is the total amount of holiday hours paid annually to an employee divided
by 26 payroll periods which equals 5.75. Shift personnel shall receive pay in lieu of
taking paid leave for accrued holidays. Such paid hours are in addition to the normal
biweekly base pay. Shift personnel will accumulate a biweekly amount of 5.75 hours.
Hours are prorated and accrued based on hours actually worked. If employees elect
to be paid for these hours at any time before the scheduled payoff, they must make
sure they have sufficient hours in their Holiday account and record the hours on their
timecard in the total columns of the timecard only.
Accrued Holiday balances will be automatically paid off in the months of June and
December.
Section 2. Conditions.
a. Personnel assigned to a 40-hour work schedule will receive paid holidays in
accordance with Sections 517 and 518 of the Merit System Rules and
Regulations.
b. Personnel assigned to a 40-hour work schedule will receive floating days off with
pay in each of the following months: August, September, March, April, and June.
The following conditions will hold:
(1) Management will designate the schedule of the paid day off under this
section at least thirty days in advance.
(2) If, in conformance with this section, Management is unable to schedule a
day off in the month indicated for reasons of shift operations, work
scheduling or any other reason, the day will be added to the employee's
vacation accrual.
(3) If an employee fails to take a day off as scheduled by Management under
this section, the day off so scheduled will be forfeited.
ARTICLE X - OVERTIME COMPENSATION
Section 1. Compensation. Shift personnel assigned to overtime relief duty in addition
to their regular 56-hour shift schedule shall receive overtime compensation at a rate of
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one and one-half times the employee's basic 56-hour rate, or out-of-class rate if such
applies, for all hours of the relief duty shift. Required off-duty training will be
compensated at the rate of one and one-half times the basic 40-hour rate or as otherwise
agreed. If an opportunity was provided to allow for the required training to be on duty,
but the employee was unable to attend, the training scheduled for off duty will not be
eligible for the 40-hour rate. Emergency callback will be compensated at a rate of one
and one- half times the basic 40-hour rate to a maximum of 8 hours, and at a rate of one
and one-half times the basic 56-hour rate for those hours in excess of 8 hours.
Overtime duty assignments will first be made from the voluntary overtime list. If such
assignments cannot be filled from the voluntary overtime list, the vacant position will be
filled by moving up on-shift personnel through out-of class assignment. Any remaining
vacancy will then be filled by overtime duty assignment made in reverse order of hire
date seniority according to specialty and qualifications required to be assigned. The
overtime duty assignment seniority list will be adjusted annually on October 31.
ARTICLE XI - APPARATUS STAFFING
Engine, truck and combination rescue companies shall be deployed for emergency
services purposes at the level of one Fire Captain, one Fire Apparatus Operator and one
Fire Fighter. Truck companies have the option of deploying at the level of two Fire
Apparatus Operators instead of one Fire Apparatus Operator and one Firefighter. This
option shall be determined by seniority. Paramedic ambulance staffing shall be two
personnel; the City will dispatch personnel on Emergency Medical Service calls such
that a minimum of 1 licensed paramedic responds. The Foothill Fire Station #8, when
activated by the Fire Chief, shall be staffed with a minimum of one Fire Apparatus
Operator and one Fire Fighter. City may dispatch a two-person apparatus (ex: squad or
quick response vehicle) with a minimum of 1 paramedic.
ARTICLE XII - FIRE DEPARTMENT PROGRAMS
Section 1. Programs. The Union agrees to continue its cooperation and participation
in existing weather station and community blood pressure screening and measurement
programs.
ARTICLE XIII - WORK ASSIGNMENTS AND TRANSFERS
It is the intent of the Palo Alto Fire Administration and Local 1319 that work assignments
and transfers will reflect the best interests of the Fire Department and the City. The Fire
Department will maintain a constant state of readiness to defend against fire and other
disasters. It is therefore imperative that all Fire Department divisions assign personnel
in the best manner to respond to the needs of the City and the Department. It is also
acknowledged that the Fire Chief is responsible to make and/or approve the work
assignments or transfers of Fire Department personnel.
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The Fire Chief or designee will maintain a three year four-year station and shift
assignment, seniority-based bid system covering the following classifications within Fire
Operations on a rotational basis: Fire Captain, Apparatus Operator and Fire Fighter.
The Fire Chief, or his designee, shall initiate personnel assignments and transfers to
balance platoon or division strength, fill permanent or temporary vacancies and provide
required training to individual personnel. Such assignments will be based on seniority,
except where career development, training, special assignments, skills and documented
performance issues are specifically identified in writing, management may make
assignments based on such issues. For purposes of this article, seniority shall be
computed from the date of entry into the current classification.
Section 1. Shipouts. When possible, least senior Fire Fighters will be given short term
or shipout relief duty. In order to maintain training continuity, shipouts of probationary
personnel will be subject to the approval of the Fire Chief or their designee. will not be
permitted during the first three-month training cycle. Probationary fire fighters will be
assigned to Stations 1, 2, 3, 4, 5, or 6 during their probationary period, filling vacancies
first, when possible. Upon completion of the first three-month training cycle, the
probationary fire fighter will be eligible for short term or shipout relief duty. If after
completion of the first three-month training cycle, a probationary employee fails any
monthly testing process, or is the subject of identified training needs, the probationary
employee will be removed from short term or shipout relief duty for a 60-day period.
Section 2. Vacation Relief Positions. In order that platoon strengths can be balanced
more quickly and to reduce the need for excess overtime, two positions will be
designated for vacation relief. These positions will be the lowest two on the Department
seniority list who have completed their probationary period.
a. The vacation relief persons will be assigned to one station when not on relief
assignment.
b. Relief assignment can be made to any Station or shift where a shortage of
personnel will cause unnecessary overtime.
c. Shortages may be caused by vacation, sick leave, disability or any leave of
absence that causes a shift to be short of personnel while another has a surplus.
d. Shift transfers will be made so as not to cause the relief person to work more than
the prescribed number of hours in the prescribed period.
e. Relief assignments will be made and hours will be coordinated by the Battalion
Chief's office.
Section 3. Transfer Requests. Non-probationary fire personnel may submit transfer
requests to their immediate supervisor to be forwarded to the appropriate chief officer.
Providing that Departmental needs are satisfied, such transfers will be administered
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using first a mutually agreeable exchange, secondly seniority.
The transfer requests shall remain on file during the year and may be granted when a
vacancy occurs, providing the requesting employee possesses the experience and
performance ability required to fill the vacancy.
Section 4. Special Assignments. Management reserves the right to assign personnel
to career development opportunities, special projects, seminars, programs and selected
educational and/or training courses, based on Fire Department needs and the
performance of the employee.
Section 5. Continuous Hourly Service. Continuous hours of service in excess of 9672
hours are subject to approval by the Fire Chief or designee. Approval may be granted
up to 120 hours when an employee has not been engaged in a greater than usual level
of activity or is not fatigued.
ARTICLE XIIIV - TRAINING COORDINATION
Section 1.Coordination. Three shift employees per platoon may be assigned to assist
the Training Officer in the coordination, preparation and scheduling of the training
program. It is agreed that volunteers will first be sought for such assignment, and further
agreed that the details of this section shall be established by mutual agreement between
the Fire Chief and the Union.
ARTICLE XIV - PARAMEDIC ASSIGNMENT
Section 1. Limit of Eligibility. The City reserves the right to limit eligibility for the
Paramedic Program to the Fire Fighter classification. The City may, at its discretion, add
other classifications within the represented bargaining unit to meet the need of program
changes. Differentials for other classifications will be as provided in Article VIII, Section
1.
Section 2. Additional Candidate Training. As the Program progresses, Management
will assess the need for training additional Paramedic candidates. It is Management's
intention to provide for such additional training as necessary for Program continuity.
Section 3. Incentives. Paramedics will receive a one-time cash payment of $500 for
each biennial recertification. This provision applies only to active incumbents of
authorized paramedic positions who remain in the paramedic assignment for at least
one additional year after recertification. The one year requirement after recertification
does not apply to those paramedics who may leave the program because of work-
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related injury or illness, or promotion, nor does it apply when a paramedic is asked by
management to recertify in order to voluntarily extend their paramedic service to meet
special departmental needs for a period of less than one year.
Section 4. Proctoring. Paramedic proctoring assignments will be made by the Chief
from among qualified volunteers. Payment of $600 will be made to the primary proctoring
paramedic at the conclusion of each proctoring assignment.
The Chief or his or her designee will maintain a list of qualified proctors from among
volunteers. Personnel will be selected by the Fire Chief or his or her designee from the
list to serve as paramedic proctors. If a conflict arises between the City and the Union
regarding the Proctor Program, either side may suspend the program at the annual
renewal period and shall remain suspended until a resolution or agreement is reached.
Section 5. Field Training Stipend. Employees assigned to provide field training for new
paramedic accreditation will receive a $300 stipend to train a new paramedic or EMT to
successful completion of paramedic accreditation. This assignment is at the discretion
of the Chief or their designee.
ARTICLE XVI - PROMOTION
Section 1. Promotion Step Level. All regular promotions from classifications within
the representation unit to the classification of Fire Captain will be made at the fifth sixth
step on the salary range.
Section 2. Promotion Process Information. For promotions to positions within the
representation unit, promotion process information will be available in the Human
Resources Department office at the time of posting. Information will include applications,
minimum qualifications, study material reference information, if appropriate, and
information on passing scores. Any changes in an established testing process must be
submitted in writing to the Union for review and input no fewer than 60 days prior to the
beginning of the process.
ARTICLE XVII - REDUCTION IN FORCE
Section 1. Order of Reduction. If the work force is reduced (reduction in force) within
a represented classification, unit employees having the shortest length of service with
the Fire Department will be laid off first so long as employees retained are fully qualified,
trained and capable of performing remaining work.
ARTICLE XVIII - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY
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Section 1. In Case of Emergency Management may use selective call back with
regard to residency in cases of emergency.
ARTICLE XVIIIIX - HEALTH BENEFITS
Section 1. Maintenance of Levels Except as otherwise set forth herein, the City will
maintain the present level of benefits on all City-sponsored medical programs.
Section 2. Vision Care. The City offers vision care coverage for employees and
dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision
Service
Plan, with monthly premiums paid by the employer. Dependents include domestic
partners, as defined under Article XX Section 3(b).
Section 3. PEMHCA Health Plan.
a. ACTIVE EMPLOYEES: During the term of this contract, the maximum City
contribution towards medical premiums for eligible full time employees per
employee category shall be up to a maximum of the following for any plan:
Medical Premium
Category
PEMHCA
Contribution*
Total Maximum City
Contribution (inclusive of
PEMHCA contribution)
effective January 1,
20192023
Employee Only $151.00133.00 $871.00840
Employee plus one $151.00133.00 $1,742.001680
Employee Family $151.00133.00 $2,260.002180
The City’s total maximum contribution towards medical premiums for eligible part
time employees shall be prorated based on the number of hours per week the
part-time employee is assigned to work.
* Any increases to the PEMHCA minimum during the term of this contract will
result in a corresponding decrease to the amount of the additional City
contribution, so that the total maximum City contribution never exceeds the Total
Maximum City Contribution described above.
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If the State of California or federal government requires the City to participate and
contribute toward coverage under any medical plan outside of PEMHCA including
but not limited to the Affordable Care Act, the City’s total liability for enrolled
employees and retirees and their eligible family members shall not exceed what
the City would have paid toward PEMHCA coverage in the absence of such state
or federal plan. The parties will meet and confer over the impact of such change
on matters within the scope of representation before implementing any change.
b. Flexible Compensation:
Effective the first pay period including Council adoption of the MOU, in lieu of
additional increases to the City’s medical premiums, hourly wages for all
bargaining unit classifications will be increased by $100 per month ($1200 per
year). Employees can utilize this cash payment for any purpose, including to
cover health insurance premiums or contribute to flexible spending accounts/457
deferred compensation plans. Effective the first full pay period of January 2024,
hourly wages for all bargaining unit classifications will be increased by an
additional $100 per month.
b.c. Active employee domestic partners whose domestic partnership is registered with
the State of California may add their domestic partner as a dependent to their
elected health plan coverage if the domestic partner is registered with the
Secretary of State.
Active employee domestic partners whose domestic partnership is not registered
with the State but who meet the requirements of the City of Palo Alto Declaration
of Domestic Partnership, and are registered with the Human Resources
Department, will be eligible for reimbursement of the actual monthly premium cost
of an individual health plan, not to exceed 90% of the average monthly premium
cost of individual coverage under the PEMHCA health plans in 2016. Effective
with the first pay period including January 1, 2017, a stipend of two hundred
eighty four ($284) per month toward the cost of an individual health plan will be
provided. Evidence of premium payment will be required with request for
reimbursement.
c.d. Alternate Medical Benefit Program.
If a regular employee and/or the employee’s dependent(s) are eligible for and
elect to receive medical insurance through any non-City of Palo Alto sponsored
or association medical plan, the employee may choose to waive his/her right to
the City of Palo Alto’s medical insurance coverage and receive cash payments in
the amount of two hundred and eighty four dollars ($284) for each month City
coverage is waived.
Examples of waivers eligible for this payment are:
• Employee waives all applicable City medical coverage; or
• Employee is eligible to enroll his or her spouse or domestic partner and
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waives medical coverage for the spouse or domestic partner; or
• Employee has additional eligible dependents and waives family-level
medical coverage.
Participation must result in a health insurance cost savings to the City and
payments per employee shall not exceed a total of two hundred eighty four dollars
($284) per month. To participate in the program the employee and dependents
must be eligible for coverage under PEMHCA medical plans, complete a waiver
of medical coverage form, and provide proof of eligible alternative medical
coverage.
Payments will be made in the employee’s paycheck beginning the first month
following the employee’s completion of the waiver form. Payments are subject to
state and federal taxes and are not considered earnings under PERS law.
Employees are responsible for notifying the City of any change in status affecting
eligibility for this program (for example, life changes affecting dependent’s
eligibility for medical coverage through the employee) and will be responsible for
repayment of amounts paid by the City contrary to the terms of this program due
to the employee’s failure to notify the City of a change in status.
d.e. Dual Coverage.
When a City employee is married to another City employee each shall be covered
only once (as an individual or as a spouse of the other City employee, but not
both) and dependent children, if any, shall be covered only by one spouse.
ARTICLE XIX - DENTAL BENEFITS
Section 1. Level of Benefits. The City will maintain the present level of benefits on the
City-sponsored dental program. Maximum benefits per calendar year shall be $2,000.
Section 2. Premiums. The City shall pay all premium payments or equivalent self-
insured program charges on behalf of employees and dependents who are eligible and
enrolled for coverage under the existing dental plan. Dependents will include domestic
partners, as defined under Article XX, Section 3(b).
Section 3. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable
charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees
and their dependents.
ARTICLE XXI - LIFE INSURANCE
Section 1. Premiums. The City currently pays the following amounts of premium on
behalf of Fire personnel:
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Per Pay Period Per Month (Approx.)
Basic Life Insurance and
Basic ADD $.085 $ .185
(per $1,000 of coverage)
The basic life insurance provided by the City shall equal the employee’s base monthly
salary multiplied by twelve.
ARTICLE XXII - RETIREMENT BENEFITS
Section 1. PERS Retirement Formula.
Safety Pension Group A: 3%@50 Safety Retirement
The City will continue the present benefits under the Public Employees' Retirement
System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the
effective date of the “3 percent at 55” (3%@55) formula for new hires as described
herein. The final year compensation for employees hired under the 3% at 50 formula will
continue to be “Single highest year” or the highest average annual compensation
earnable by the member during one (1) year of employment immediately preceding
retirement or the one-year period otherwise designated by the member (Government
Code section 20042).
Safety Pension Group B: 3%@55 Safety Retirement
Effective December 7, 2012, the City amended its contract with CalPERS to provide
employees hired on or after that date who are not “new members” of CalPERS, as
defined in the Public Employees’ Pension Reform Act (often referred to as “classic”
CalPERS members) with the CalPERS retirement formula three percent of final salary
at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest
consecutive years” based on the highest average annual compensation earnable by the
member during three (3) consecutive years of employment immediately preceding
retirement or the three-year period otherwise designated by the member (Government
Code section 20037).
Safety Pension Group C: 2.7% at Age 57 Safety Retirement
Employees hired on or after January 1, 2013 meeting the definition of “new member”
under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be
subject to all of the provisions of that law, including but not limited to the two point seven
percent at age 57 (2.7%@57) retirement formula with a three year final compensation
period.
Section 2. PERS Member Contribution.
a. Employees in all represented classes in Pension Groups A and B described
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above will make the 9% PERS member contributions by payroll deduction.
b. Employees in all represented classes in Pension Group C described above shall
pay the employee contribution required by the Public Employees’ Pension Reform
Act, currently calculated at fifty percent (50%) of the normal cost.
c. When employees pay their PERS Member Contribution pursuant to section 3a
and 3b above, the City will provide for member contributions to be made as
allowed under provisions of IRS Code Section 414(h)(2).
Section 3. Additional Employee PERS contributions
In addition to the PERS member contribution as required under section 2. a, b and
c above, all employees in pension groups a, b and c shall contribute the additional
following contributions:
a. In addition to the Member Contribution required per CalPERS 20516 contract
amendment all employees regardless of pension formula in this unit shall pay
3% towards the Employer share of Pension.
b. Effective the first full pay period following July 1, 2020, all employees regardless
of pension formula in this unit shall, in addition to the Member Contribution
required, pay an additional 1% towards the employer share of Pension for a total
of 4%.
Section 4. Option 2 Death Benefit. The City provides the Pre-Retirement Option
Settlement 2 Death Benefit. The Pre-Retirement Optional Settlement 2 Death Benefit
provides the spouse of a deceased member, who was eligible to retire for service at the
time of death, with an alternate option to the lump sum Basic Death Benefit whereby the
surviving spouse can elect a monthly allowance equal to the amount the member would
receive if he/she had retired from service on the date of death and elected Optional
Settlement 2 (the highest monthly allowance a member can leave a spouse).
Section 5. Military Service Credit. The City will provide the Public Employees’
Retirement System benefit known as “Section 20930.3, Military Service Credit as Public
Service.”
Section 6. 1959 Survivor Benefit.
The City will continue to provide the basic level of 1959 PERS Survivor Benefit to eligible
employees in accordance with Government Code section 21571.
Section 7. Employer Contributions to 457 Plan
Effective the first full pay period following July 1, 2020, the City will contribute the
equivalent of 1% of the employee’s pensionable salary into the 457 plan.
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Eligibility:
a. Employees must be enrolled in an eligible City sponsored 457 plan
b. Employees who reach the maximum as defined by the IRS will not receive
additional contributions
c. Employee must be making PERS contributions
ARTICLE XXIII - RETIREMENT MEDICAL PLAN
Section 1. Retiree medical coverage for Unit employees hired before January 1,
2004:
Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan
will be made in accordance with the Public Employees' Medical and Hospital Care Act
Resolution for employees that retire on or before December 31, 2006. Effective January
1, 2007 for an employee retiring on or after that date the City will pay up to the monthly
medical premium for the 2nd most expensive plan offered to IAFF employees among the
existing array of plans. However, the City contribution for an employee hired before
January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution
amount it makes for active City employees.
Effective upon ratification and adoption of this Agreement, the City shall provide active
unit employees who were hired before January 1, 2004 with a one-time opportunity to
opt-in to retiree health benefits provided under California Government Code section
22893. Eligible employees who wish to exercise this option shall inform the People,
Strategy, and Operations department of their election in writing no later than 90 days
following the ratification and adoption of this Agreement.
Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees
Hired On Or After January 1, 2004:
a) The retiree health benefit provided in California Government Code section 22893
shall apply to all employees hired on or after January 1, 2004. Under this law, an
employee is eligible to receive Fifty (50) percent of benefit after ten (10) years;
each additional service credit year after Ten (10) years will increase employer
credit by Five (5%) percent until Twenty (20) years is reached at which time
employee is eligible for One Hundred (100%) percent of annuitant-only coverage
and Ninety (90%) percent of the additional premium for dependents.
ARTICLE XXIV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP)
Section 1. DCAP. The City will provide a dependent care assistance program for
employees subject to the provisions of applicable law. The program will remain in effect
subject to a reasonable minimum participation level and availability of third party
administrative services at a reasonable cost.
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ARTICLE XXIV - VACATION ACCRUAL
Section 1. Accrual Rate. All eligible fire suppression persons shall accrue vacation at
the following rate for continuous service performed in a pay status. Non-shift
representation unit employees shall accrue the 40-hour equivalent--one shift equals
sixteen hours.
a. For employees completing less than four years continuous service, the accrual
rate shall be five duty shifts per year.
b. For employees completing four but not more than nine years continuous service,
the accrual rate shall be eight duty shifts per year.
c. For employees completing nine but not more than 14 years continuous service,
the accrual rate shall be 10 duty shifts per year.
d. For employees completing 14 but less than 19 years continuous service, the
accrual rate shall be 11 duty shifts per year.
e. For employees completing 19 or more years continuous service, the accrual rate
shall be 12 duty shifts per year.
Section 2. Unused At Termination. Represented employees who fail to use all
vacation as accrued may continue the accrual balance and be entitled to all accrued but
unused vacation upon termination, except as limited below.
Section 3. Limits. Vacation accrual balances shall be limited to three times the annual
accrual rate. Accrual credit beyond this limit shall not be recognized or compensated,
except that for employees of record as of January 1, 1984 who have vacation excess on
a one-time basis shall be set aside (banked) to be subsequently used as vacation or
paid at termination. No additions may be made to the bank. The bank is established only
to facilitate changeover from unlimited to three times annual accrual rate limitation on
vacation accrual as herein provided.
ARTICLE XXVI - USE OF VACATION
Section 1. Maximum Number of Slots. The maximum number of vacation
scheduling slots for representation unit suppression employees is four (4) per
platoon on a year- round basis. During the term of the contract, parties agree to
meet to discuss the impact of the number of vacation slots per day on daily staffing.
Section 2. Approvals. Vacation scheduling must be approved by the Battalion Chief or
Fire Chief. The minimum is twelve (12) hours or more for suppression employees.
Advance vacation schedules for suppression shall begin either at 8:00 a.m. or 8:00 p.m.
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Section 3. Vacation Pay. Vacation pay shall be made available in advance of regular
pay day provided that employee requests such advance in writing to the Finance
Department at least two weeks prior to his/her vacation date. The employee's supervisor
must verify vacation date on the request.
Section 4. Illness on Vacation. When an employee becomes ill while on vacation and
such illness can be supported by a statement from an accredited physician or the
employee is hospitalized for any period, the employee shall have the period of illness
charged against sick leave and not against vacation leave.
Section 5. When to be Taken. The time at which an employee may use accrued
vacation leave and the amount to be taken at any one time shall be determined by the
Chief with particular regard for the needs of the City, but insofar as possible, considering
the wishes of the employee.
Section 6. Limitation on Use. Employees may not use more than three times their
annual rate of accrual in any calendar year period provided, however, that the Chief may
grant exceptions to this limitation.
Section 7. Waiting Period. Employees shall complete six months continuous service
before using accrued vacation leave.
Section 8. Double Compensation Prohibited. Employees shall not work for the City
during their vacation.
Section 9. Cash out Option. Once each calendar year an employee may cash out eight (8)
or more hours of vacation accrual in excess of eighty (80) hours to a maximum of one hundred
twenty (120) hours; PROVIDED, that the employee has taken eighty
(80) hours of vacation off with pay in the previous twelve (12) months.
ARTICLE XXVII - SICK LEAVE
Section 1. Statement of Policy. Sick leave shall be allowed and used only in case of
actual personal sickness or disability, medical or dental treatment, or as authorized in
Section 9. Up to six (6) days (72 shift hours for suppression personnel) sick leave per
year may be used for illness in the immediate family (wife, husband, child, parent, parent-
in-law, brother, sister, registered domestic partner, or close relative residing in the
household of the employee.)
Section 2. Eligibility. Regular employees shall be eligible to accrue and use sick leave.
Section 3. Accrual. Sick leave shall be accrued bi-weekly, provided the employee has
been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall
be accrued at the rate of six shifts per year.
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Section 4. Accumulation. Accumulated sick leave may be accrued without limit, except
as provided in Section 8 below.
Section 5. Use. Sick leave may be used as needed and approved, to the point of
depletion, at which time the employee will no longer receive pay for sick leave. A new
employee may, if necessary, use up to forty-eight (48) hours or shift equivalent of sick
leave at any time during the first six months of employment. Any negative balances
generated by such utilization will be charged against future accrual or deducted from
final paycheck in the event of termination.
An employee who has been disabled for 60 consecutive days and who is otherwise
eligible both for payment under the long-term disability group insurance coverage and
accrued sick leave benefits may, at his/her option, choose either to receive the long-
term disability benefits or to utilize the remainder of his/her accrued sick leave prior to
applying for long-term disability benefits.
Sick leave will not be granted for illness occurring during any leave of absence other
than sick leave, unless the employee can demonstrate that it was necessary to come
under the care of a doctor while on such other leave of absence.
When an employee finds it necessary to be absent for any reason, he/she should cause
the facts to be reported to the department within 60 minutes prior to his/her regular
starting time on the first working day of absence, and shall regularly report on, or account
in advance for each work day thereafter unless hospitalized or otherwise
indisposed. Such reports may be subject to written documentation. Sick leave shall not
be granted unless such report or advance accounting has been made, provided,
however, that the department head may grant exception to this policy where the
circumstances warrant.
Section 6. Depletion of Sick Leave Benefits. Upon depletion of sick leave or the
beginning of the period to be covered by payments under long-term disability group
insurance coverage, whichever comes first, an employee may be granted a medical
leave of absence without pay for a period not exceeding sixty days. If the employee is
unable to return to work at the end of this period, he/she must request further medical
leave which will be subject to the approval of the City Manager. If further leave is granted,
the employee must notify the City of intent to return to work every thirty days. If further
leave is not granted, the employee's service with the City shall be considered terminated.
Section 7. Forfeiture Upon Termination. Employees leaving the municipal service
shall forfeit all accumulated sick leave, except as otherwise provided by law and Section
8. In the event that notice of resignation is given, sick leave may be used only through
the day which was designated as the final day of work by such notice.
Section 8. Payment for Accumulated Sick Leave. Eligible employees (those hired
before December 31, 1983) who leave the municipal service in good standing, or who
die while employed in good standing by the City, and who have fifteen or more years of
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continuous service, shall receive compensation for unused sick leave hours in a sum
equal to two and one-half percent of their unused sick leave hours multiplied by their
years of continuous service and their basic hourly rate of pay at termination. Full sick
leave accrual will be paid in the event of termination due to disability.
For new employees hired after December 31, 1983, sick leave accrual accumulation will
be limited to 1,000 hours with no payoff provisions for unused balance at termination for
any reason.
Section 9. Personal Business Leave Chargeable to Sick Leave. It is agreed
between the parties that all shift personnel represented by the Union shall have the right
to charge up to forty-eight (48) hours personal business leave per year to sick leave, and
that all non-shift personnel shall have the right to charge up to twenty (20) hours personal
business leave per year to sick leave. Such personal business leave shall be allowed
only on a staffing available basis and where the provisions of the minimum staffing
agreement are not affected. "Staffing available" means at or above minimum staffing
levels as defined in Article XII.
Section 10. Return to Work or Continue Work With Limited Duty. In cases of non-
work-related injury, illness or pregnancy an employee, upon approval of the Fire Chief
and the City Safety Officer, may return to work or continue work with doctor-approved
limited duty. Approval for such limited duty shall be based upon department ability to
provide work consistent with medical limitations and the length of time of the limitations.
Shift employees must be willing to accept any non-shift limited duty schedule work
location and may be subject to the reasonable availability of limited duty assignments.
The City doctor may be consulted in determining work limitations.
ARTICLE XXVIII - SUBPOENAS
Employees required to answer subpoenas as a witness for the City of Palo Alto or for a
plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work
time lost to answer depositions or to appear in court.
ARTICLE XXVIIIIX - WORKERS' COMPENSATION
Section 1. Status Reporting While on Disability. Persons on disability will be required
to appear or otherwise report at regular two-week intervals to the Fire Chief or designate
to discuss his/her status of medical treatment therapy and physical condition. This
section is not meant to unreasonably restrict employee's activities so long as such
activities are cleared by the treating physician, treating program or alternative treatment
program is maintained and employee is available for full or restricted duty as soon as
medical clearance can be received.
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ARTICLE XXIX - PHYSICAL FITNESS MEDICAL EXAMINATIONS
Physical fitness medical examinations for all represented employees may include chest
x-rays every three years unless otherwise directed by a physician, eye examination and
hearing examination.
ARTICLE XXXI- LEAVES OF ABSENCE WITHOUT PAY
Section 1. Disability. Leaves of absence without pay may be granted in cases of
disability not covered by sick leave. Pregnancy will be considered as any other disability.
Leaves of absence for disability are subject to physician's verification including
diagnosis and medical work restriction.
Section 2. Other Leaves. Leaves of absence without pay may be granted in cases of
personal emergency or when such absences would not be contrary to the best interest
of the City. Non-disability prenatal and/or postpartum leave is available under this
provision, but such leave shall not begin more than six months prenatal nor extend more
than six months postpartum.
Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability
or other reasons, the employee may elect to use accrued vacation credits. Requests for
leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all
leaves without pay must be in writing to be effective.
Section 4. Approval of Department Head. Leave of absence without pay for one week
or less may be granted by the department head, depending on the merit of the individual
case.
Section 5. Approval by City Manager. Leave of absence without pay in excess of one
week's duration may be granted by the City Manager on the merit of the case, but such
leave shall not exceed twelve months' duration.
Section 6. Absence Without Leave. Unauthorized leave of absence shall be
considered to be without pay, and reductions in the employee's pay shall be made
accordingly. Unauthorized leave of absence may result in termination of employment.
Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without
pay may be granted a regular employee by his/her department head in the event of death
to family members other than one of the immediate family, such leave to be granted in
accordance with Section 2 and Section 4.
Section 8. Military Leave of Absence. State law shall govern the granting of military
leaves of absence and the rights of employees returning from such absence.
Section 9. Use of paid accruals while on leave. During unpaid leaves of absence for
disability or other reasons, the employee may elect and the City may require the
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employee to use accrued vacation paid leave credits in a manner consistent with state
and federal law. Requests for leaves without pay shall not be unreasonably denied. In
order to avoid misunderstandings, all leaves without pay must be in writing to be
effective.
ARTICLE XXXII - LEAVES OF ABSENCE WITH PAY
Section 1. City Manager Granted Leaves. The City Manager may grant a regular
employee under his control a leave of absence with pay for a period not exceeding thirty
calendar days for reasons he deems adequate and in the best interest of the City.
Section 2. Council Granted Leave. The City Council may grant a regular employee a
leave of absence with pay for a period not to exceed one year for reasons the Council
considers adequate and in the best interest of the City.
Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or
direct primary election shall be granted as provided in the State of California Elections
Code, and notice that an employee desires such time off shall be given in accordance
with the provisions of said Code.
Section 4. Leaves of Absence; Death in Immediate Family. Leave of absence with
pay of one shift with provision for approval of one additional shift for travel outside the
area may be granted an employee by the Chief in the event of death in the employee's
immediate family, which is defined for purposes of this section as wife, husband, son,
son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister,
sister-in-law, mother-in-law, father-in-law, grandfather, grandfather-in-law, grandmother,
grandmother-in-law, uncle, aunt, registered domestic partner, or a close relative residing
in the household of the employee. Such leave shall be at full pay and shall not be
charged against the employee's accrued vacation or sick leave. Requests for leave in
excess of two shifts shall be subject to the approval of the City Manager.
Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty
shall be granted a leave of absence with pay from their assigned duties until released
by the court, provided the employee remits to the City all fees received for such duties
other than mileage or subsistence allowances within thirty days from the termination of
his or her jury service.
ARTICLE XXXIII – VOLUNTEER LEAVE PROGRAM
The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide
members of Local 1319 International Association of Fire Fighters (IAFF) employees the
opportunity to donate their accrued vacation time to assist fellow members of IAFF either
due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as
defined herein) or (b) in order to care for a member of the employee’s immediate family
(spouse, child, parent or registered domestic partner suffering from a verifiable
catastrophic illness or injury) and have exhausted or will presently exhaust all of their
paid leave.
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In order to be eligible to receive donated leave, an employee must have a catastrophic
illness or injury or an employee’s immediate family member must have a catastrophic
illness or injury that requires the employee to provide full-time care for this family
member. Care will be taken to emphasize the voluntary nature of the plan and to insure
confidentiality of employee participants and medical conditions (where applicable).
A Firefighter Voluntary Leave Sharing Program has been established to accept
donations of vacation in accordance with the Program’s guidelines. All donations shall
be:
1. Voluntary
2. Irrevocable
3. Confidential, unless disclosure is required by law
4. In whole hour increments of at least four (4) hours, with the hours donated being
converted to donee hours based on the donee’s salary rate (so that there will be
no cost to the City due to salary differential).
5. The employee shall be required to exhaust all other types of leave to request
donated leave
6. It is understood that employees seeking or receiving leave under this program
will apply for long-term disability benefits for which they may be eligible
7. Where any of the period during which an employee receives donated leave is
designated as family leave under the California Family Rights Act (CFRA/Family
Medical Leave Act (FMLA), the employee will be eligible for continuation of
medical and other available benefits during that the family leave period (for up to
12 weeks), in accordance with the requirements of those laws. If the employee
receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or
after the employee has exhausted the available CFRA/FMLA leave period, the
employee will need to pay the premiums for continued medical and other available
benefits if the employee chooses to continue such coverages through the City
8. If the donation request is based on the need for an employee to care for an
immediate family member, as defined above, the family member must require full-
time care by the employee. Certification of this requirement by a health care
professional is required
9. The maximum donated time a donee may receive is 12 months (if available).
10. Applications to donate leave or receive leave under this Program are made to
the Human Resources Department
11. This is a pilot program and is subject to cancellation by either party
IAFF members interested in donating leave or in applying to receive donated leave shall
complete forms provided by the Human Resources Department. If an applicant for leave
is found to meet the criteria set forth herein, Human Resources will determine the
availability of and (as applicable) allocation of donated paid leave. Payroll will be notified
in writing of the number of hours to be deducted from each donating employee’s vacation
balance and transferred to the donee employee(s).
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The City reserves the right to modify or terminate this program at any time.
Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling
90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non-
occupational medical condition of an employee that will require the prolonged absence
of the employee from duty and which will result in a substantial loss of income to the
employee because the employee will have exhausted all paid leave available apart from
the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as
referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury
under this Policy.
ARTICLE XXXIIIV- TUITION REIMBURSEMENT
Section 1. Options.
Effective July 1, 2004 the tuition reimbursement program was amended to provide each
employee the option of receiving the $1,000 as taxable cash or as a contribution to
deferred compensation. The tuition reimbursement program will be eliminated effective
July 1, 2012 with no further payouts starting in FY 12-13 and on-going.
ARTICLE XXXIV - PER DIEM TRAVEL EXPENSES
Section 1. City Business. Unless other mutually agreeable arrangements are made,
representation unit employees who are required to travel away from the City on City
business will receive travel expenses, according to City policies which are currently in
effect.
ARTICLE XXXVI - HOUSE FUND ITEMS
Section 1. Station House Fund. The station house fund per year, per shift employee
shall be $100.00.
Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire
station with non-food house fund items: TV purchase and repair. Kitchen cooking
utensils, small kitchen appliances and other specific items to be determined by mutual
agreement of the parties will be purchased from the station house fund. The Fire
Fighters agree to maintain the voter registration program.
ARTICLE XXXVII - PARKING
Section 1. Entitlements. Employees in represented classes assigned to Civic Center
or adjacent work locations shall be entitled to free parking in the Civic Center Garage,
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or a commute incentive which will be subject to meet and confer. Employees hired after
July 1, 1994, may initially receive a parking permit for another downtown lot, subject to
availability of space at the Civic Center Garage. Light duty employees assigned to the
Civic Center will receive Civic Center parking temporary permits for the duration of the
light duty assignment.
ARTICLE XXXVIII- GRIEVANCES
The City and the Union agree to establish a grievance procedure as follows:
1. Definition: A grievance is any complaint or dispute regarding the application of
interpretation of this Memorandum of Understanding, Department rules,
regulations, policies or procedures relating to wages, hours or other terms and
conditions of employment.
2. Any non-probationary employee represented by the Union may file and process
a grievance. Such aggrieved employees may be represented by the Union or may
represent themselves in preparing and presenting their grievance at any level of
review. The Union may file a grievance when a Union right not directly related to
an individual employee becomes subject to dispute.
3. Any retroactivity on monetary grievances shall be limited to the date of
occurrence, except in no case will retroactivity be granted prior to three months
before the grievance was filed in writing.
4. Written grievances shall be submitted on forms provided by the City or on forms
which are mutually agreeable to the City and the Union. The Union shall deliver
a copy of a written grievance to the Human Resources Department Director on
the same date that it is first filed with another City representative under the
provisions of the below grievance procedure.
5. The time limits specified in this section may be extended by mutual agreement in
writing of the aggrieved employee or Union and the reviewer concerned. Should
a decision not be rendered within a stipulated time limit, the aggrieved employee
may immediately appeal to the next step. The grievance will be considered settled
if the decision of any step is not appealed within the specified time limit.
6. If a grievance is related to a promotional process to positions within the
representation unit, Step I shall be directed to the Deputy Fire Chief (or Fire
Marshal for FPB positions).
7. Step I. The aggrieved employee will first attempt to resolve the grievance through
informal discussions with the immediate supervisor by the end of the tenth
business day following the discovery of the incident upon which the grievance is
based. Every attempt will be made to settle the issue at this level.
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Step II. If the grievance is not resolved through informal discussion, it may be
submitted in writing to the Battalion Chief (Deputy Fire Chief for Captain
grievances) within ten business days of the informal discussion. The Battalion
Chief/Assistant Fire Chief will have ten business days from receipt of the
grievance to review the matter and prepare a written response. If the grievance
is denied, the response shall contain the reasons therefore.
Step III. If the grievance is not resolved in Step II, it may be submitted in writing
to the Fire Chief within ten business days of receipt of the Battalion Chief's/
Deputy Fire Chief's written response. The Fire Chief will have ten business days
from receipt of the grievance to review the matter and prepare a written response.
If the grievance is denied, the response shall contain the reasons therefore.
Step IV. If the grievance is not resolved in Step III, the aggrieved employee may
submit the grievance to the City Manager for final determination or to
bindinggrievance arbitration. All Step IV appeals must be filed in writing at the
Human Resources Department Office within ten business days of receipt of the
Fire Chief's response under Step III. All hearings before the City Manager shall
be pursuant to the rules and regulations set forth in the City of Palo Alto Merit
Rules and Regulations. Hearings before an arbitrator will be as set forth below.
In the event the aggrieved employee decides to proceed to arbitration, he/she
shall select jointly with the Director of Human Resources an arbitrator. If the
parties are unable to agree on an arbitrator, they shall jointly request a panel of
five qualified and experienced arbitrators from the State Conciliation Service.
Upon receipt of the list of arbitrators, the names shall be alternately struck until
one name remains who shall serve as arbitrator. The arbitrator shall be jointly
contacted by the parties.
The arbitrator shall have jurisdiction and authority only to interpret, apply, or
determine compliance with the provisions of the Memorandum of Agreement and
such Merit System rules, regulations, policies, procedures, City ordinances or
regulations relating to terms or conditions of employment, wages or fringe
benefits, as may hereafter be in effect in the City insofar as may be necessary to
the determination of grievances appealed to the arbitrator. The arbitrator shall
be without power to make any decision:
a. Regarding matters of interest.
b. Contrary to, or inconsistent with or modifying in any way, the terms of this
Memorandum of Agreement.
c. Granting any wage increases or decreases.
d. Granting pay or benefits for any period of time prior to the execution date of
this Memorandum of Agreement.
Where either party seeks arbitration and the other party claims the matter is not
subject to the arbitration provisions of the Memorandum of Agreement, the issue
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of arbitrability shall first be decided by the arbitrator using the standards and
criteria set forth in this Memorandum of Agreement.
The arbitrator shall be without authority to require the City to delegate or relinquish
any powers which by State law or City Charter the City cannot delegate or
relinquish. Copies of the arbitrator's decision shall be submitted to the City and
the aggrieved employee. All direct costs emanating from the arbitration procedure
shall be shared equally by the City and the aggrieved employee or the Union.
It is further agreed that the provisions of this section shall be incorporated as part
of Chapter 11 of the City of Palo Alto Merit System Rules and Regulations.
Existing procedures set forth in Chapter 11, to the extent they are inconsistent
with the provisions contained herein, are superseded.
ARTICLE XXXVIIIIX- SAFETY COMMITTEE
Section 1. Committee A Safety Committee comprised of four representation unit
members appointed by the Union, and at least two members of Management, will
continue to meet. The Committee may make safety recommendations to the Fire Chief
regarding equipment, vehicles and apparatus and may review all accidents involving
represented personnel. Management shall inform the Safety Committee of all accidents
involving injuries to represented personnel.
ARTICLE XXXIXL – MISCELLANEOUS
Section 1. Section 1. Uniforms.
The value of the purchase, rental and/or maintenance of the required
uniforms shall be reported as special compensation to the extent legally
permissible, pursuant to Title 2 CCR, Section 571(a)(5) as Uniform
Allowance. Based upon existing uniform standards and the City’s cost
experience, the value of this benefit shall be reported as $15.31 per pay
period.
The City will supply complete uniforms as described in Fire Department
Policy 1031. The City will issue four T-shirts to each uniformed employee
each July These T-shirts are for use on duty only and will be maintained by
the employee.T-Shirts. The City will issue four T-shirts to each uniformed employee
each July These T-shirts are for use on duty only and will be maintained by the
employee.
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Section 2. Removal of Disciplinary Actions. Records of disciplinary actions shall be
removed from the personnel file of a representation unit employee upon written request
by the employee after a period of three years, or sooner if mutually agreed by the Fire
Chief and the employee.
ARTICLE XLI - FULL UNDERSTANDING
Section 1. Full and Entire Understanding. The Memorandum of Agreement contains
the full and entire understanding of the parties regarding the matters set forth herein.
Section 2. Fair Labor Standards Act. Compensatory time off with Management
approval may be used as an alternative to overtime compensation only within the 27-
day work period within which the overtime is worked.
Section 3. Severability. Should any of the provisions herein contained be rendered or
declared invalid by reason of any existing State or Federal legislation or by reason of
State or U.S. Supreme Court ruling, such invalidation of such part or portion of this
Memorandum of Agreement shall not invalidate the remaining portions hereof, and they
shall remain in full force and effect, insofar as such remaining portions are severable.
Section 4. Good Faith. It is the intent of the parties that ordinances, resolutions, rules
and regulations enacted pursuant to this Memorandum of Understanding be
administered and observed in good faith.
Section 5. Merit System Rules and Regulations. During the term of this Memorandum
of Agreement, Management may propose certain changes in the City Merit System
Rules and Regulations. With regard to such changes which pertain to the representation
unit, the parties agree to review, and upon request, meet and confer regarding the
changes.
Section 6. Station Consolidation or Relocation . During the term of this agreement,
at management request, the parties agree to meet and confer with regard to issues
pertaining to fire station consolidation or relocation.
Section 7. Meet and Confer. Nothing in this agreement shall preclude the parties from
mutually agreeing to meet and confer on any subject within the scope of representation
during the term of this agreement.
ARTICLE XLII – 48/96 Work Schedule
The regular schedule for 56 hour personnel will be under a “48/96” model. With the
adoption of this “48/96” schedule the parties agreed to revise Fire Department policy
205.6 typical workday and 1009.8.1 Reporting for Duty- Holidays.
ARTICLE XLIII – FUTURE SERVICE DELIVERY MODELS
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Effective upon request of the City, the parties will meet and confer in good faith
regarding the service delivery model of current inspection services and transport during
the term of this Agreement.
ARTICLE XLIIIV - DURATION
This Memorandum of Agreement shall become effective upon ratification by both
parties hereto and remain in effect through June 30, 2025.
This Memorandum of Agreement shall become effective upon adoption by the City
Council through June 30, 2021.
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MEMORANDUM OF AGREEMENT
Between
CITY OF PALO ALTO and
I.A.F.F. LOCAL 1319
January 30, 2023 – June 30, 2025
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PREAMBLE __________________________________________________________ 6
ARTICLE I - RECOGNITION _____________________________________________ 6
Section 1. Recognition. ______________________________________________________ 6
ARTICLE II - NO DISCRIMINATION _______________________________________ 6
Section 1. No Discrimination. __________________________________________________ 6
Section 2. Free Choice. ______________________________________________________ 6
Section 3. Human Relations Committee. _________________________________________ 6
ARTICLE III - PAYROLL DEDUCTIONS ____________________________________ 6
Section 1. Payroll Deductions and Written Authorization. ____________________________ 7
Section 2. Certification of Union Membership _____________________________________ 7
Section 3. Indemnification ____________________________________________________ 7
ARTICLE IV - UNION ACTIVITIES ________________________________________ 7
Section 1. On-Duty Time. _____________________________________________________ 7
Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. ______________________________ 7
Section 3. Use of Meeting Places. ______________________________________________ 8
ARTICLE V - NO STRIKES ______________________________________________ 8
Section 1. No Strikes. ________________________________________________________ 8
ARTICLE VI - PROBATIONARY PERIOD __________________________________ 8
Section 2. Part of Testing Process. _____________________________________________ 8
Section 3. Suspension or Termination. __________________________________________ 8
ARTICLE VII - SALARY PROVISIONS _____________________________________ 8
Section 1. Base Wage Rates. _________________________________________________ 8
Section 2. Out-of-Class Compensation. __________________________________________ 9
Section 3. Salary Steps _____________________________________________________ 10
Section 4. Pay for Court Appearance. __________________________________________ 10
Section 4. Classifications ____________________________________________________ 11
ARTICLE VIII - PAY DIFFERENTIALS ____________________________________ 11
Section 1. Paramedic Differential. _____________________________________________ 11
Section 2. Special Operations Differential (formerly Haz Mat) _______________________ 12
Section 3. Fire Investigator Differential. ________________________________________ 12
Section 4. EMT Differential. __________________________________________________ 12
Section 5. Bilingual Pay _____________________________________________________ 12
ARTICLE IX - HOLIDAYS ______________________________________________ 13
Section 1. Named Holidays. __________________________________________________ 13
Section 2. Conditions. ______________________________________________________ 13
ARTICLE X - OVERTIME COMPENSATION _______________________________ 14
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Section 1. Compensation. ___________________________________________________ 14
ARTICLE XI - APPARATUS STAFFING ___________________________________ 14
ARTICLE XII - WORK ASSIGNMENTS AND TRANSFERS ____________________ 15
Section 1. Shipouts. _______________________________________________________ 15
Section 2. Vacation Relief Positions. ___________________________________________ 15
Section 3. Transfer Requests. ________________________________________________ 16
Section 4. Special Assignments. ______________________________________________ 16
Section 5. Continuous Hourly Service. __________________________________________ 16
ARTICLE XIII - TRAINING COORDINATION _______________________________ 16
Section 1.Coordination ______________________________________________________ 16
ARTICLE XIV - PARAMEDIC ASSIGNMENT _______________________________ 16
Section 1. Limit of Eligibility. __________________________________________________ 16
Section 2. Additional Candidate Training. _______________________________________ 16
Section 3. Incentives. _______________________________________________________ 16
Section 4. Proctoring. _______________________________________________________ 17
Section 5. Field Training Stipend. _____________________________________________ 17
ARTICLE XV - PROMOTION ____________________________________________ 17
Section 1. Promotion Step Level. ______________________________________________ 17
Section 2. Promotion Process Information. ______________________________________ 17
ARTICLE XVI - REDUCTION IN FORCE __________________________________ 17
Section 1. Order of Reduction. ________________________________________________ 17
ARTICLE XVII - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY ______ 18
Section 1. In Case of Emergency ______________________________________________ 18
ARTICLE XVIII - HEALTH BENEFITS _____________________________________ 18
Section 1. Maintenance of Levels _____________________________________________ 18
Section 2. Vision Care. ______________________________________________________ 18
Section 3. PEMHCA Health Plan. _____________________________________________ 18
ARTICLE XIX - DENTAL BENEFITS ______________________________________ 20
Section 1. Level of Benefits. __________________________________________________ 20
Section 2. Premiums. _______________________________________________________ 20
ARTICLE XX - LIFE INSURANCE ________________________________________ 20
Section 1. Premiums. _______________________________________________________ 21
ARTICLE XXI - RETIREMENT BENEFITS _________________________________ 21
Section 1. PERS Retirement Formula. __________________________________________ 21
Section 2. PERS Member Contribution. ________________________________________ 22
Section 3. Additional Employee PERS contributions _______________________________ 22
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Section 4. Option 2 Death Benefit. _____________________________________________ 22
Section 5. Military Service Credit. _____________________________________________ 22
Section 6. 1959 Survivor Benefit. _____________________________________________ 22
Section 7. Employer Contributions to 457 Plan ___________________________________ 23
ARTICLE XXII - RETIREMENT MEDICAL PLAN ____________________________ 23
ARTICLE XXV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) ________ 23
Section 1. DCAP. __________________________________________________________ 23
ARTICLE XXIV - VACATION ACCRUAL __________________________________ 24
Section 1. Accrual Rate. _____________________________________________________ 24
Section 2. Unused At Termination. _____________________________________________ 24
Section 3. Limits. __________________________________________________________ 24
ARTICLE XXV - USE OF VACATION _____________________________________ 24
Section 1. Maximum Number of Slots __________________________________________ 24
Section 2. Approvals. _______________________________________________________ 24
Section 3. Vacation Pay. ____________________________________________________ 25
Section 4. Illness on Vacation. ________________________________________________ 25
Section 5. When to be Taken. ________________________________________________ 25
Section 6. Limitation on Use. _________________________________________________ 25
Section 7. Waiting Period. ___________________________________________________ 25
Section 8. Double Compensation Prohibited. _____________________________________ 25
Section 9. Cash out Option. __________________________________________________ 25
ARTICLE XXVI - SICK LEAVE __________________________________________ 25
Section 1. Statement of Policy. _______________________________________________ 25
Section 2. Eligibility ________________________________________________________ 25
Section 3. Accrual. _________________________________________________________ 25
Section 4. Accumulation. ____________________________________________________ 26
Section 5. Use. ____________________________________________________________ 26
Section 6. Depletion of Sick Leave Benefits. _____________________________________ 26
Section 7. Forfeiture Upon Termination. ________________________________________ 26
Section 8. Payment for Accumulated Sick Leave. _________________________________ 26
Section 9. Personal Business Leave Chargeable to Sick Leave. ______________________ 27
Section 10. Return to Work or Continue Work With Limited Duty. _____________________ 27
ARTICLE XXVII - SUBPOENAS _________________________________________ 27
ARTICLE XXVIII - WORKERS' COMPENSATION ___________________________ 27
ARTICLE XXIX - PHYSICAL FITNESS MEDICAL EXAMINATIONS _____________ 28
ARTICLE XXX- LEAVES OF ABSENCE WITHOUT PAY ______________________ 28
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Section 1. Disability. ________________________________________________________ 28
Section 2. Other Leaves. ____________________________________________________ 28
Section 3. Accrued Vacation Credits. ___________________________________________ 28
Section 4. Approval of Department Head ________________________________________ 28
Section 5. Approval by City Manager. __________________________________________ 28
Section 6. Absence Without Leave. ____________________________________________ 28
Section 7. Leave of Absence; Death Outside the Immediate Family. __________________ 28
Section 8. Military Leave of Absence ___________________________________________ 28
Section 9. Use of paid accruals while on leave. ___________________________________ 29
ARTICLE XXXI - LEAVES OF ABSENCE WITH PAY ________________________ 29
Section 1. City Manager Granted Leaves. _______________________________________ 29
Section 2. Council Granted Leave. _____________________________________________ 29
Section 3. Employee's Time Off to Vote. ________________________________________ 29
Section 4. Leaves of Absence; Death in Immediate Family. _________________________ 29
Section 5. Jury Duty; Leave of Absence. ________________________________________ 29
ARTICLE XXXII – VOLUNTEER LEAVE PROGRAM _________________________ 29
ARTICLE XXXIII- TUITION REIMBURSEMENT _____________________________ 31
ARTICLE XXXIV - PER DIEM TRAVEL EXPENSES _________________________ 31
ARTICLE XXXV - HOUSE FUND ITEMS __________________________________ 31
Section 1. Station House Fund. _______________________________________________ 31
Section 2. Non-Food House Items _____________________________________________ 31
ARTICLE XXXVI - PARKING ___________________________________________ 31
Section 1. Entitlements. _____________________________________________________ 32
ARTICLE XXXVII- GRIEVANCES ________________________________________ 32
ARTICLE XXXVIII- SAFETY COMMITTEE _________________________________ 34
ARTICLE XXXIX – MISCELLANEOUS ____________________________________ 34
Section 1. Section 1. Uniforms. _______________________________________________ 34
Section 2. Removal of Disciplinary Actions. ______________________________________ 35
ARTICLE XL - FULL UNDERSTANDING __________________________________ 35
ARTICLE XLI – 48/96 Work Schedule ____________________________________ 35
ARTICLE XLII – FUTURE SERVICE DELIVERY MODELS ____________________ 35
ARTICLE XLIII - DURATION ____________________________________________ 36
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MEMORANDUM OF AGREEMENT
CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319
January 30, 2023 - June 30, 2025
PREAMBLE
This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to
as the "City", and Local 1319, International Association of Fire Fighters, hereinafter
referred as the "Union", has been prepared and entered into in accordance with Title I,
Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and
Chapter 12 of the City of Palo Alto Merit System Rules and Regulations.
ARTICLE I - RECOGNITION
Section 1. Recognition. The City recognizes the Union as the exclusive representative
of an employee group consisting solely of the classifications of Fire Apparatus Operator,
Fire Fighter, Fire Captain, Fire Captain (forty-hour assignment), Fire Inspector,
Hazardous Materials Specialist, and Hazmat Inspector, who are regularly employed by
the City and others as amended into the representation unit from time to time under
existing law and the Merit System Rules and Regulations.
ARTICLE II - NO DISCRIMINATION
Section 1. No Discrimination. The Union and the City hereby agree that there shall
be no discrimination because of race, color, age, disability, sex, national origin, sexual
orientation, political or religious affiliation under this Agreement. There shall be no
discrimination in employment conditions or treatment of employees on the basis of
membership or non-membership in the Union, or participation in the lawful activities of
the Union.
Section 2. Free Choice. The Union and the City hereby agree to protect the rights of
all employees to exercise their free choice to join the Union and to abide by the express
provisions of applicable State and local laws.
Section 3. Human Relations Committee. A Human Relations Committee will include
up to five members appointed by the Union executive board and at least two members
of management with representation from the Fire and Human Resources Departments.
The committee may make recommendations to management regarding recruitment
outreach, equal employment opportunity and career development programs.
ARTICLE III - PAYROLL DEDUCTIONS
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Section 1. Payroll Deductions and Written Authorization. The City shall deduct
Union membership dues assessments and insurances authorized by the Union. This will
be accomplished by payroll deduction from the bi-weekly pay of member employees.
The dues deduction must be authorized in writing by the employee on a Union
authorization card.
The Union will be the custodian of records for individual employee membership and dues
deduction forms. The Union will maintain authorizations for dues deduction, signed by
the individual from whose salary or wages the deduction or reduction is to be made. The
City will direct employee requests to cancel or change deductions to the Union.
The City shall remit the deducted dues to the Union as soon as possible after deduction.
Section 2. Certification of Union Membership. The Union agrees to provide the City
an initial certified list of members and statement that the Union has and will maintain
written authorizations signed by the individuals from whose wages the Union dues
deductions are to be made. From that point forward the Union will update the list
whenever there are changes.
Section 3. Indemnification. The Union shall indemnify and hold the City harmless
against any liability arising from any claims, demands, or other action relating to this
article. The Union shall comply with all statutory and legal requirements with respect to
this article.
ARTICLE IV - UNION ACTIVITIES
Section 1. On-Duty Time. Local 1319 officers may use a reasonable amount of on- duty
time to attend to Union business specifically related to representation of employees so
long as:
a. Staffing is available
b. Operations are not interrupted
c. Advance approval is obtained from the Battalion Chief or Operations Chief
Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. The Union shall have access
to interoffice mail and existing bulletin boards in unit employee work areas for the
purpose of posting, transmitting, or distributing notice or announcements including
notices of social events, recreational events, Union membership meetings, result of
elections and reports of minutes of Union meetings. Any other material must have prior
approval of the Operations Chief or Fire Chief. Action on approval will be taken within
24 hours of submission.
The Union may send e-mail messages only for the purposes set forth above. The I.T.
Division will maintain the IAFF list. The Union access to e-mail is based on the following
conditions:
a. E-Mails to the IAFF list will be copied to the Fire Chief or Operations Chief at
distribution.
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b. E-Mails to the IAFF list will only be sent by the Executive Board Members.
Section 3. Use of Meeting Places. The Union shall have the right to reserve City
meeting and conference rooms for use during non-working hours or as subject to
Battalion Chief approval. Such meeting places will be made available in conformity with
City regulations and subject to the limitations of prior commitment.
ARTICLE V - NO STRIKES
Section 1. No Strikes. The Union, its representatives, or members, shall not engage in
or cause, instigate, encourage, sanction, or condone a strike, withholding of services,
leave of absence abuse, work stoppage or work slowdown of any kind against the City
of Palo Alto or its citizens by employees covered under this Agreement. No employee
shall refuse to cross any picket line in the conduct of Fire Department business, nor shall
the Union, its representatives or members discriminate in any way toward anyone who
refuses to participate in a strike, or any of the job actions cited above.
ARTICLE VI - PROBATIONARY PERIOD
Section 1. Tentative and Subject to Probationary Period. All original appointments
to regular or part-time municipal service positions shall be tentative and subject to a
probationary period. This probationary period shall include the fire training academies
and an additional fourteen (14) months after completion of the academies (including in-
house academy), excluding time off for extended leaves of absence.
Section 2. Part of Testing Process. The probationary period shall be regarded as part
of the testing process and shall be utilized for closely observing all aspects of the
employee's qualifications, for ensuring the effective adjustment of a new employee to
the position and for rejecting any probationary employee who, in the opinion of
management, is not suitable to attain permanent status.
Section 3. Suspension or Termination. During the probationary period a new
employee may be suspended or terminated at any time by the appointing authority
without cause and without right of appeal or to submit a grievance. Said employee shall
not have the right to proceed to arbitration on the issue of arbitrability or on the issue of
its constitutional or discovery rights, nor those of any employee by reason of the
foregoing. The Union shall not be a party to any lawsuit relating to the termination of a
probationary employee.
ARTICLE VII - SALARY PROVISIONS
Section 1. Base Wage Rates.
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a. The base wage rates of bargaining unit classifications will be as set forth in
Appendix A of this MOA.
Market Increase: Effective the first full pay period including the adoption of
the MOA, the salary ranges of all represented classifications will receive a
market adjustment of five percent (5.0%).Addition of Salary Step: Effective
the first full pay period including adoption of this MOA by City Council, the City
will implement a new step 6 (5% above Step 5) following the same
percentage difference as steps 1-5. Any employee who is already at Step 5
on the date the City Council adopts the MOA will move to Step 6 effective the
first full pay period following City Council adoption of the MOA. Any employee
in the Firefighter classification who is already at Step 4 on the date the City
Council adopts the MOA whichever is later will move to Step 5 effective the
first full pay period following City Council adoption of the MOA. The
employees moved to Step 5 pursuant to this paragraph will move to Step 6
upon one year of service at Step 5 so long as they receive a satisfactory
performance evaluation.
General Salary Increase: Effective the first full pay period following July 1,
2023, the salary ranges of all represented classifications will be increased by
four percent (4.0%).General Salary Increase: Effective the first full pay period
following July 1, 2024, the salary ranges of all represented classifications will
be increased by four percent (4.0%).Market Adjustment Part 2: Effective the
first full pay period following January 1, 2025, the salary ranges of all
represented classifications will receive a market adjustment of two percent
(2.0%).
Total Compensation and Survey Database
Management and the Union have agreed to a compensation survey database
structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park
Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San
Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San
Francisco. Compensation Criteria includes: top step salary, maximum longevity,
maximum education, uniform allowance, EMT differential, Hazmat differential, deferred
compensation, employee pick up of employer pension costs (Negative EPMC), and
maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP).
The database is intended to provide one source of information concerning how the
compensation paid to employees in bargaining unit job classifications compares to that
paid by other employers.
Section 2. Out-of-Class Compensation. All represented employees who are
assigned work in a higher classification for longer than four (4) continuous hours will be
compensated at a higher pay rate for all hours worked during the out-of-class
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assignment. This provision applies as follows:
Fire Fighter, Apparatus Operator, Captain or Inspector working in a higher
classification: Step to step. Representation unit classification working as a Battalion
Chief, 10% above 6th-Step Captain, but not to exceed 93% of Battalion Chief control
point. Representation unit classification working in any other management position,
within the range of the management position.
In accordance with Government Code 20480, an employee assigned to work in an “out-
of-class appointment” may not exceed 960 hours worked in the appointment within a
fiscal year if the employee is appointed to an upgraded position or higher classification
that is vacant during recruitment for a permanent appointment. This limitation does not
apply to a position that is temporarily available due to a leave of absence.
Section 3. Salary Steps
Employees in the Firefighter Rank initially appointed to the first step of the salary
range of their classification shall be entitled to a merit increase to step two in the pay
range upon successful completion of six (6) months of service, so long as they
receive a satisfactory performance evaluation. The date of such increase shall be
the first full pay period following the evaluation date.
Employees may be appointed to any step in the salary schedule for their
classification as recommended by the Fire Chief and approved by the City Manager.
Employees appointed to the second step and above are eligible to receive a merit
increase the first full pay period following successful completion of twelve (12)
months of actual service, so long as they receive a satisfactory performance
evaluation.
Each twelve (12) months of actual service after the evaluation date, each employee
receiving a satisfactory performance evaluation shall receive a merit increase to the
next higher step (effective the first full pay period following the evaluation date) until
the top step of the pay range for the job class has been reached. An employee shall
not receive a merit increase beyond the maximum steps established for the job
classification.
Section 4. Pay for Court Appearance. Sworn Fire personnel appearing in court for
the People shall be compensated as follows:
Period Rate Minimum
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a. Appearance on scheduled day
off
Time and one-half at
40-hour rate
4 hours
b. Any or all court time
during scheduled shift
Straight time during
shift at 56-hour rate
None
c. Appearance on scheduled Time and one-half at 2 hours work day but not during
scheduled shift
40-hour rate (2 hour minimum, may
not run into shift time)
The employee shall remit all fees received for such appearances to the City within thirty
days from the termination of his/her services. Compensation for mileage or subsistence
allowance shall not be considered as a fee and shall be retained by the employee.
Section 4. Classifications. The Haz Mat Inspector position will be paid at the same
level as the Fire Inspector (603).
One Fire Captain position will be assigned to a Fire Captain (Forty-hour Assignment)
with the pay set at 5% above the Fire Captain.
ARTICLE VIII - PAY DIFFERENTIALS
Unit employees are eligible for the following pay differentials. Notwithstanding any
provision of this agreement, total differential pay shall not exceed seventeen and a half
percent (17.5%).
Section 1. Paramedic Differential.
Paramedics who have completed the required training and have been accredited in
accordance with the program and possess their paramedic license, will receive a 14%
differential in addition to their base salary effective beginning with the date of
assignment to rotational Paramedic duty. The Paramedic salary differential will
terminate with the cessation of assignment to rotational Paramedic duty.The base
salary for Captain classification (including Hazmat Inspector and Fire Inspector) base
salary will be increased 1% in alignment with this differential increase..
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Section 2. Special Operations Differential (formerly Haz Mat)
A maximum of eighteen positions who are both members of the Special Operations
group and assigned the Special Operations team will receive a 5% differential in
addition to their base salary. The differential does not apply to minimum staffing
replacements.
Section 3. Fire Investigator Differential.
. A maximum of five (5) Fire inspector personnel including Haz Mat Inspectors who
have been trained as Fire investigators and who are regularly assigned to fire
investigation duties by the Chief will receive a 5% differential in addition to their
base salary. The Chief reserves the right to determine who is regularly assigned to
such duties.
Section 4. EMT Differential.
The former 3% EMT differential pay was rolled into base pay constituting the City’s
incentive payment for EMT skills. In the event an employee’s EMT certification
expires, the employee will be taken off the line and placed in an unpaid status until
the employee can submit proof of EMT recertification.
Section 5. Bilingual Pay
Employees who have successfully demonstrated proficiency in any of the approved
languages shall receive a 5% premium in addition to their base salary.
a. Approved Languages:
Spanish, Chinese (Mandarin and Cantonese), Japanese, Tagalog, Korean,
Vietnamese, Russian, American Sign Language, and such other languages
as determined by management.
b. Proficiency Requirements
The City shall develop and provide a method of testing for proficiency in the
above listed languages. The City will pay for the first test in any approved
language however subsequent testing will be at the employee’s own
expense. An employee must pass the proficiency test to maintain the
bilingual pay. The Fire Chief shall have the authority to require employees
receiving bilingual pay to re-certify with the Human Resources Department as
necessary and reasonable.
c. Arbitratability
The City’s substantive evaluation of an employee’s knowledge of and skills in
a designated second language shall not be subject to the grievance
procedure or review by an arbitrator.
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ARTICLE IX - HOLIDAYS
Section 1. Named Holidays.
Holiday pay is compensation for employees who are normally required to work on
an approved holiday because they work in positions that require scheduling staff
without regard to holidays. The following holidays are recognized as municipal
holidays for pay purposes, and regular, employees shall have these days off with pay,
except as otherwise provided in these rules:
January 1 Veterans’ Day, November 11
Third Monday in January Thanksgiving Day
Third Monday in February Day after Thanksgiving Day
Last Monday in May December 25
July 4th Either December 24, or December 31 as provided below
First Monday in SeptemberSecond Monday in October
Floating Holiday: In addition to the paid holidays listed above, employees shall be excused
with pay for one full work shift as a day of reflection (floating holiday) per calendar year.
Eligible employees may use the floating holiday on any day mutually agreed by the employee
and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day (June 19) or
Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by the end of the
fiscal year will be deemed forfeited and have no cash value.
161.5 hours are paid annually to an employee at a rate of 6.21 hours each pay
period. Shift personnel shall receive pay in lieu of taking paid leave for accrued
holidays. Such paid hours are in addition to the normal biweekly base pay. Shift
personnel will be paid 6.21 hours of in lieu of holiday pay each pay period. Hours
are prorated and accrued based on hours actually worked.
Accrued Holiday balances will be automatically paid off in the months of June and
December.
Section 2. Conditions.
a. Personnel assigned to a 40-hour work schedule will receive paid holidays in
accordance with Sections 517 and 518 of the Merit System Rules and
Regulations.
b. Personnel assigned to a 40-hour work schedule will receive floating days off with
pay in each of the following months: August, September, March, April, and June.
The following conditions will hold:
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(1) Management will designate the schedule of the paid day off under this
section at least thirty days in advance.
(2) If, in conformance with this section, Management is unable to schedule a
day off in the month indicated for reasons of shift operations, work
scheduling or any other reason, the day will be added to the employee's
vacation accrual.
(3) If an employee fails to take a day off as scheduled by Management under
this section, the day off so scheduled will be forfeited.
ARTICLE X - OVERTIME COMPENSATION
Section 1. Compensation. Shift personnel assigned to overtime relief duty in addition
to their regular 56-hour shift schedule shall receive overtime compensation at a rate of
one and one-half times the employee's basic 56-hour rate, or out-of-class rate if such
applies, for all hours of the relief duty shift. Required off-duty training will be
compensated at the rate of one and one-half times the basic 40-hour rate or as otherwise
agreed. If an opportunity was provided to allow for the required training to be on duty,
but the employee was unable to attend, the training scheduled for off duty will not be
eligible for the 40-hour rate. Emergency callback will be compensated at a rate of one
and one- half times the basic 40-hour rate to a maximum of 8 hours, and at a rate of one
and one-half times the basic 56-hour rate for those hours in excess of 8 hours.
Overtime duty assignments will first be made from the voluntary overtime list. If such
assignments cannot be filled from the voluntary overtime list, the vacant position will be
filled by moving up on-shift personnel through out-of class assignment. Any remaining
vacancy will then be filled by overtime duty assignment made in reverse order of hire
date seniority according to specialty and qualifications required to be assigned. The
overtime duty assignment seniority list will be adjusted annually on October 31.
ARTICLE XI - APPARATUS STAFFING
Engine, truck and combination rescue companies shall be deployed for emergency
services purposes at the level of one Fire Captain, one Fire Apparatus Operator and one
Fire Fighter. Truck companies have the option of deploying at the level of two Fire
Apparatus Operators instead of one Fire Apparatus Operator and one Firefighter. This
option shall be determined by seniority. Paramedic ambulance staffing shall be two
personnel; the City will dispatch personnel on Emergency Medical Service calls such
that a minimum of 1 licensed paramedic responds. The Foothill Fire Station #8, when
activated by the Fire Chief, shall be staffed with a minimum of one Fire Apparatus
Operator and one Fire Fighter. City may dispatch a two-person apparatus (ex: squad or
quick response vehicle) with a minimum of 1 paramedic.
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ARTICLE XII - WORK ASSIGNMENTS AND TRANSFERS
It is the intent of the Palo Alto Fire Administration and Local 1319 that work assignments
and transfers will reflect the best interests of the Fire Department and the City. The Fire
Department will maintain a constant state of readiness to defend against fire and other
disasters. It is therefore imperative that all Fire Department divisions assign personnel
in the best manner to respond to the needs of the City and the Department. It is also
acknowledged that the Fire Chief is responsible to make and/or approve the work
assignments or transfers of Fire Department personnel.
The Fire Chief or designee will maintain a three year station and shift assignment,
seniority-based bid system covering the following classifications within Fire Operations
on a rotational basis: Fire Captain, Apparatus Operator and Fire Fighter.
The Fire Chief, or his designee, shall initiate personnel assignments and transfers to
balance platoon or division strength, fill permanent or temporary vacancies and provide
required training to individual personnel. Such assignments will be based on seniority,
except where career development, training, special assignments, skills and documented
performance issues are specifically identified in writing, management may make
assignments based on such issues. For purposes of this article, seniority shall be
computed from the date of entry into the current classification.
Section 1. Shipouts. When possible, least senior Fire Fighters will be given short term
or shipout relief duty. In order to maintain training continuity, shipouts of probationary
personnel will be subject to the approval of the Fire Chief or their designee.
Section 2. Vacation Relief Positions. In order that platoon strengths can be balanced
more quickly and to reduce the need for excess overtime, two positions will be
designated for vacation relief. These positions will be the lowest two on the Department
seniority list who have completed their probationary period.
a. The vacation relief persons will be assigned to one station when not on relief
assignment.
b. Relief assignment can be made to any Station or shift where a shortage of
personnel will cause unnecessary overtime.
c. Shortages may be caused by vacation, sick leave, disability or any leave of
absence that causes a shift to be short of personnel while another has a surplus.
d. Shift transfers will be made so as not to cause the relief person to work more than
the prescribed number of hours in the prescribed period.
e. Relief assignments will be made and hours will be coordinated by the Battalion
Chief's office.
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Section 3. Transfer Requests. Non-probationary fire personnel may submit transfer
requests to their immediate supervisor to be forwarded to the appropriate chief officer.
Providing that Departmental needs are satisfied, such transfers will be administered
using first a mutually agreeable exchange, secondly seniority.
The transfer requests shall remain on file during the year and may be granted when a
vacancy occurs, providing the requesting employee possesses the experience and
performance ability required to fill the vacancy.
Section 4. Special Assignments. Management reserves the right to assign personnel
to career development opportunities, special projects, seminars, programs and selected
educational and/or training courses, based on Fire Department needs and the
performance of the employee.
Section 5. Continuous Hourly Service. Continuous hours of service in excess of 96
hours are subject to approval by the Fire Chief or designee. Approval may be granted
up to 120 hours when an employee has not been engaged in a greater than usual level
of activity or is not fatigued.
ARTICLE XIII - TRAINING COORDINATION
Section 1.Coordination. Three shift employees per platoon may be assigned to assist
the Training Officer in the coordination, preparation and scheduling of the training
program. It is agreed that volunteers will first be sought for such assignment, and further
agreed that the details of this section shall be established by mutual agreement between
the Fire Chief and the Union.
ARTICLE XIV - PARAMEDIC ASSIGNMENT
Section 1. Limit of Eligibility. The City reserves the right to limit eligibility for the
Paramedic Program to the Fire Fighter classification. The City may, at its discretion, add
other classifications within the represented bargaining unit to meet the need of program
changes. Differentials for other classifications will be as provided in Article VIII, Section
1.
Section 2. Additional Candidate Training. As the Program progresses, Management
will assess the need for training additional Paramedic candidates. It is Management's
intention to provide for such additional training as necessary for Program continuity.
Section 3. Incentives. Paramedics will receive a one-time cash payment of $500 for
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each biennial recertification. This provision applies only to active incumbents of
authorized paramedic positions who remain in the paramedic assignment for at least
one additional year after recertification. The one year requirement after recertification
does not apply to those paramedics who may leave the program because of work-
related injury or illness, or promotion, nor does it apply when a paramedic is asked by
management to recertify in order to voluntarily extend their paramedic service to meet
special departmental needs for a period of less than one year.
Section 4. Proctoring. Paramedic proctoring assignments will be made by the Chief
from among qualified volunteers. Payment of $600 will be made to the primary proctoring
paramedic at the conclusion of each proctoring assignment.
The Chief or his or her designee will maintain a list of qualified proctors from among
volunteers. Personnel will be selected by the Fire Chief or his or her designee from the
list to serve as paramedic proctors. If a conflict arises between the City and the Union
regarding the Proctor Program, either side may suspend the program at the annual
renewal period and shall remain suspended until a resolution or agreement is reached.
Section 5. Field Training Stipend. Employees assigned to provide field training for new
paramedic accreditation will receive a $300 stipend to train a new paramedic or EMT to
successful completion of paramedic accreditation. This assignment is at the discretion
of the Chief or their designee.
ARTICLE XV - PROMOTION
Section 1. Promotion Step Level. All regular promotions from classifications within
the representation unit to the classification of Fire Captain will be made at the sixth step
on the salary range.
Section 2. Promotion Process Information. For promotions to positions within the
representation unit, promotion process information will be available in the Human
Resources Department office at the time of posting. Information will include applications,
minimum qualifications, study material reference information, if appropriate, and
information on passing scores. Any changes in an established testing process must be
submitted in writing to the Union for review and input no fewer than 60 days prior to the
beginning of the process.
ARTICLE XVI - REDUCTION IN FORCE
Section 1. Order of Reduction. If the work force is reduced (reduction in force) within
a represented classification, unit employees having the shortest length of service with
the Fire Department will be laid off first so long as employees retained are fully qualified,
trained and capable of performing remaining work.
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ARTICLE XVII - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY
Section 1. In Case of Emergency Management may use selective call back with
regard to residency in cases of emergency.
ARTICLE XVIII - HEALTH BENEFITS
Section 1. Maintenance of Levels Except as otherwise set forth herein, the City will
maintain the present level of benefits on all City-sponsored medical programs.
Section 2. Vision Care. The City offers vision care coverage for employees and
dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision
Service
Plan, with monthly premiums paid by the employer. Dependents include domestic
partners, as defined under Article XX Section 3(b).
Section 3. PEMHCA Health Plan.
a. ACTIVE EMPLOYEES: During the term of this contract, the maximum City
contribution towards medical premiums for eligible full time employees per
employee category shall be up to a maximum of the following for any plan:
Medical Premium
Category
PEMHCA
Contribution*
Total Maximum City
Contribution (inclusive of
PEMHCA contribution)
effective January 1, 2023
Employee Only $151.00 $871.00
Employee plus one $151.00 $1,742.00
Employee Family $151.00 $2,260.00
The City’s total maximum contribution towards medical premiums for eligible part
time employees shall be prorated based on the number of hours per week the
part-time employee is assigned to work.
* Any increases to the PEMHCA minimum during the term of this contract will
result in a corresponding decrease to the amount of the additional City
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contribution, so that the total maximum City contribution never exceeds the Total
Maximum City Contribution described above.
If the State of California or federal government requires the City to participate and
contribute toward coverage under any medical plan outside of PEMHCA including
but not limited to the Affordable Care Act, the City’s total liability for enrolled
employees and retirees and their eligible family members shall not exceed what
the City would have paid toward PEMHCA coverage in the absence of such state
or federal plan. The parties will meet and confer over the impact of such change
on matters within the scope of representation before implementing any change.
b. Flexible Compensation:
Effective the first pay period including Council adoption of the MOU, in lieu of
additional increases to the City’s medical premiums, hourly wages for all
bargaining unit classifications will be increased by $100 per month ($1200 per
year). Employees can utilize this cash payment for any purpose, including to
cover health insurance premiums or contribute to flexible spending accounts/457
deferred compensation plans. Effective the first full pay period of January 2024,
hourly wages for all bargaining unit classifications will be increased by an
additional $100 per month.
c. Active employee domestic partners whose domestic partnership is registered with
the State of California may add their domestic partner as a dependent to their
elected health plan coverage if the domestic partner is registered with the
Secretary of State.
Active employee domestic partners whose domestic partnership is not registered
with the State but who meet the requirements of the City of Palo Alto Declaration
of Domestic Partnership, and are registered with the Human Resources
Department, will be eligible for reimbursement of the actual monthly premium cost
of an individual health plan, not to exceed 90% of the average monthly premium
cost of individual coverage under the PEMHCA health plans in 2016. Effective
with the first pay period including January 1, 2017, a stipend of two hundred
eighty four ($284) per month toward the cost of an individual health plan will be
provided. Evidence of premium payment will be required with request for
reimbursement.
d. Alternate Medical Benefit Program.
If a regular employee and/or the employee’s dependent(s) are eligible for and
elect to receive medical insurance through any non-City of Palo Alto sponsored
or association medical plan, the employee may choose to waive his/her right to
the City of Palo Alto’s medical insurance coverage and receive cash payments in
the amount of two hundred and eighty four dollars ($284) for each month City
coverage is waived.
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Examples of waivers eligible for this payment are:
• Employee waives all applicable City medical coverage; or
• Employee is eligible to enroll his or her spouse or domestic partner and
waives medical coverage for the spouse or domestic partner; or
• Employee has additional eligible dependents and waives family-level
medical coverage.
Participation must result in a health insurance cost savings to the City and
payments per employee shall not exceed a total of two hundred eighty four dollars
($284) per month. To participate in the program the employee and dependents
must be eligible for coverage under PEMHCA medical plans, complete a waiver
of medical coverage form, and provide proof of eligible alternative medical
coverage.
Payments will be made in the employee’s paycheck beginning the first month
following the employee’s completion of the waiver form. Payments are subject to
state and federal taxes and are not considered earnings under PERS law.
Employees are responsible for notifying the City of any change in status affecting
eligibility for this program (for example, life changes affecting dependent’s
eligibility for medical coverage through the employee) and will be responsible for
repayment of amounts paid by the City contrary to the terms of this program due
to the employee’s failure to notify the City of a change in status.
e. Dual Coverage.
When a City employee is married to another City employee each shall be covered
only once (as an individual or as a spouse of the other City employee, but not
both) and dependent children, if any, shall be covered only by one spouse.
ARTICLE XIX - DENTAL BENEFITS
Section 1. Level of Benefits. The City will maintain the present level of benefits on the
City-sponsored dental program. Maximum benefits per calendar year shall be $2,000.
Section 2. Premiums. The City shall pay all premium payments or equivalent self-
insured program charges on behalf of employees and dependents who are eligible and
enrolled for coverage under the existing dental plan. Dependents will include domestic
partners, as defined under Article XX, Section 3(b).
Section 3. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable
charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees
and their dependents.
ARTICLE XX - LIFE INSURANCE
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Section 1. Premiums. The City currently pays the following amounts of premium on
behalf of Fire personnel:
Per Pay Period Per Month (Approx.)
Basic Life Insurance and
Basic ADD $.085 $ .185
(per $1,000 of coverage)
The basic life insurance provided by the City shall equal the employee’s base monthly
salary multiplied by twelve.
ARTICLE XXI - RETIREMENT BENEFITS
Section 1. PERS Retirement Formula.
Safety Pension Group A: 3%@50 Safety Retirement
The City will continue the present benefits under the Public Employees' Retirement
System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the
effective date of the “3 percent at 55” (3%@55) formula for new hires as described
herein. The final year compensation for employees hired under the 3% at 50 formula will
continue to be “Single highest year” or the highest average annual compensation
earnable by the member during one (1) year of employment immediately preceding
retirement or the one-year period otherwise designated by the member (Government
Code section 20042).
Safety Pension Group B: 3%@55 Safety Retirement
Effective December 7, 2012, the City amended its contract with CalPERS to provide
employees hired on or after that date who are not “new members” of CalPERS, as
defined in the Public Employees’ Pension Reform Act (often referred to as “classic”
CalPERS members) with the CalPERS retirement formula three percent of final salary
at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest
consecutive years” based on the highest average annual compensation earnable by the
member during three (3) consecutive years of employment immediately preceding
retirement or the three-year period otherwise designated by the member (Government
Code section 20037).
Safety Pension Group C: 2.7% at Age 57 Safety Retirement
Employees hired on or after January 1, 2013 meeting the definition of “new member”
under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be
subject to all of the provisions of that law, including but not limited to the two point seven
percent at age 57 (2.7%@57) retirement formula with a three year final compensation
period.
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Section 2. PERS Member Contribution.
a. Employees in all represented classes in Pension Groups A and B described
above will make the 9% PERS member contributions by payroll deduction.
b. Employees in all represented classes in Pension Group C described above shall
pay the employee contribution required by the Public Employees’ Pension Reform
Act, currently calculated at fifty percent (50%) of the normal cost.
c. When employees pay their PERS Member Contribution pursuant to section 3a
and 3b above, the City will provide for member contributions to be made as
allowed under provisions of IRS Code Section 414(h)(2).
Section 3. Additional Employee PERS contributions
In addition to the PERS member contribution as required under section 2. a, b and
c above, all employees in pension groups a, b and c shall contribute the additional
following contributions:
a. In addition to the Member Contribution required per CalPERS 20516 contract
amendment all employees regardless of pension formula in this unit shall pay
3% towards the Employer share of Pension.
b. Effective the first full pay period following July 1, 2020, all employees regardless
of pension formula in this unit shall, in addition to the Member Contribution
required, pay an additional 1% towards the employer share of Pension for a total
of 4%.
Section 4. Option 2 Death Benefit. The City provides the Pre-Retirement Option
Settlement 2 Death Benefit. The Pre-Retirement Optional Settlement 2 Death Benefit
provides the spouse of a deceased member, who was eligible to retire for service at the
time of death, with an alternate option to the lump sum Basic Death Benefit whereby the
surviving spouse can elect a monthly allowance equal to the amount the member would
receive if he/she had retired from service on the date of death and elected Optional
Settlement 2 (the highest monthly allowance a member can leave a spouse).
Section 5. Military Service Credit. The City will provide the Public Employees’
Retirement System benefit known as “Section 20930.3, Military Service Credit as Public
Service.”
Section 6. 1959 Survivor Benefit.
The City will continue to provide the basic level of 1959 PERS Survivor Benefit to eligible
employees in accordance with Government Code section 21571.
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Section 7. Employer Contributions to 457 Plan
Effective the first full pay period following July 1, 2020, the City will contribute the
equivalent of 1% of the employee’s pensionable salary into the 457 plan.
Eligibility:
a. Employees must be enrolled in an eligible City sponsored 457 plan
b. Employees who reach the maximum as defined by the IRS will not receive
additional contributions
c. Employee must be making PERS contributions
ARTICLE XXII - RETIREMENT MEDICAL PLAN
Section 1. Retiree medical coverage for Unit employees hired before January 1,
2004:
Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan
will be made in accordance with the Public Employees' Medical and Hospital Care Act
Resolution for employees that retire on or before December 31, 2006. Effective January
1, 2007 for an employee retiring on or after that date the City will pay up to the monthly
medical premium for the 2nd most expensive plan offered to IAFF employees among the
existing array of plans. However, the City contribution for an employee hired before
January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution
amount it makes for active City employees.
Effective upon ratification and adoption of this Agreement, the City shall provide active
unit employees who were hired before January 1, 2004 with a one-time opportunity to
opt-in to retiree health benefits provided under California Government Code section
22893. Eligible employees who wish to exercise this option shall inform the People,
Strategy, and Operations department of their election in writing no later than 90 days
following the ratification and adoption of this Agreement.
Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees
Hired On Or After January 1, 2004:
a) The retiree health benefit provided in California Government Code section 22893
shall apply to all employees hired on or after January 1, 2004. Under this law, an
employee is eligible to receive Fifty (50) percent of benefit after ten (10) years;
each additional service credit year after Ten (10) years will increase employer
credit by Five (5%) percent until Twenty (20) years is reached at which time
employee is eligible for One Hundred (100%) percent of annuitant-only coverage
and Ninety (90%) percent of the additional premium for dependents.
ARTICLE XXV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP)
Section 1. DCAP. The City will provide a dependent care assistance program for
employees subject to the provisions of applicable law. The program will remain in effect
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subject to a reasonable minimum participation level and availability of third party
administrative services at a reasonable cost.
ARTICLE XXIV - VACATION ACCRUAL
Section 1. Accrual Rate. All eligible fire suppression persons shall accrue vacation at
the following rate for continuous service performed in a pay status. Non-shift
representation unit employees shall accrue the 40-hour equivalent--one shift equals
sixteen hours.
a. For employees completing less than four years continuous service, the accrual
rate shall be five duty shifts per year.
b. For employees completing four but not more than nine years continuous service,
the accrual rate shall be eight duty shifts per year.
c. For employees completing nine but not more than 14 years continuous service,
the accrual rate shall be 10 duty shifts per year.
d. For employees completing 14 but less than 19 years continuous service, the
accrual rate shall be 11 duty shifts per year.
e. For employees completing 19 or more years continuous service, the accrual rate
shall be 12 duty shifts per year.
Section 2. Unused At Termination. Represented employees who fail to use all
vacation as accrued may continue the accrual balance and be entitled to all accrued but
unused vacation upon termination, except as limited below.
Section 3. Limits. Vacation accrual balances shall be limited to three times the annual
accrual rate. Accrual credit beyond this limit shall not be recognized or compensated,
except that for employees of record as of January 1, 1984 who have vacation excess on
a one-time basis shall be set aside (banked) to be subsequently used as vacation or
paid at termination. No additions may be made to the bank. The bank is established only
to facilitate changeover from unlimited to three times annual accrual rate limitation on
vacation accrual as herein provided.
ARTICLE XXV - USE OF VACATION
Section 1. Maximum Number of Slots. The maximum number of vacation
scheduling slots for representation unit suppression employees is four (4) per
platoon on a year- round basis. During the term of the contract, parties agree to
meet to discuss the impact of the number of vacation slots per day on daily staffing.
Section 2. Approvals. Vacation scheduling must be approved by the Battalion Chief or
Fire Chief. The minimum is twelve (12) hours or more for suppression employees.
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Advance vacation schedules for suppression shall begin either at 8:00 a.m. or 8:00 p.m.
Section 3. Vacation Pay. Vacation pay shall be made available in advance of regular
pay day provided that employee requests such advance in writing to the Finance
Department at least two weeks prior to his/her vacation date. The employee's supervisor
must verify vacation date on the request.
Section 4. Illness on Vacation. When an employee becomes ill while on vacation and
such illness can be supported by a statement from an accredited physician or the
employee is hospitalized for any period, the employee shall have the period of illness
charged against sick leave and not against vacation leave.
Section 5. When to be Taken. The time at which an employee may use accrued
vacation leave and the amount to be taken at any one time shall be determined by the
Chief with particular regard for the needs of the City, but insofar as possible, considering
the wishes of the employee.
Section 6. Limitation on Use. Employees may not use more than three times their
annual rate of accrual in any calendar year period provided, however, that the Chief may
grant exceptions to this limitation.
Section 7. Waiting Period. Employees shall complete six months continuous service
before using accrued vacation leave.
Section 8. Double Compensation Prohibited. Employees shall not work for the City
during their vacation.
Section 9. Cash out Option. Once each calendar year an employee may cash out eight (8)
or more hours of vacation accrual in excess of eighty (80) hours to a maximum of one hundred
twenty (120) hours; PROVIDED, that the employee has taken eighty
(80) hours of vacation off with pay in the previous twelve (12) months.
ARTICLE XXVI - SICK LEAVE
Section 1. Statement of Policy. Sick leave shall be allowed and used only in case of
actual personal sickness or disability, medical or dental treatment, or as authorized in
Section 9. Up to six (6) days (72 shift hours for suppression personnel) sick leave per
year may be used for illness in the immediate family (wife, husband, child, parent, parent-
in-law, brother, sister, registered domestic partner, or close relative residing in the
household of the employee.)
Section 2. Eligibility. Regular employees shall be eligible to accrue and use sick leave.
Section 3. Accrual. Sick leave shall be accrued bi-weekly, provided the employee has
been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall
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be accrued at the rate of six shifts per year.
Section 4. Accumulation. Accumulated sick leave may be accrued without limit, except
as provided in Section 8 below.
Section 5. Use. Sick leave may be used as needed and approved, to the point of
depletion, at which time the employee will no longer receive pay for sick leave. A new
employee may, if necessary, use up to forty-eight (48) hours or shift equivalent of sick
leave at any time during the first six months of employment. Any negative balances
generated by such utilization will be charged against future accrual or deducted from
final paycheck in the event of termination.
An employee who has been disabled for 60 consecutive days and who is otherwise
eligible both for payment under the long-term disability group insurance coverage and
accrued sick leave benefits may, at his/her option, choose either to receive the long-
term disability benefits or to utilize the remainder of his/her accrued sick leave prior to
applying for long-term disability benefits.
Sick leave will not be granted for illness occurring during any leave of absence other
than sick leave, unless the employee can demonstrate that it was necessary to come
under the care of a doctor while on such other leave of absence.
When an employee finds it necessary to be absent for any reason, he/she should cause
the facts to be reported to the department within 60 minutes prior to his/her regular
starting time on the first working day of absence, and shall regularly report on, or account
in advance for each work day thereafter unless hospitalized or otherwise
indisposed. Such reports may be subject to written documentation. Sick leave shall not
be granted unless such report or advance accounting has been made, provided,
however, that the department head may grant exception to this policy where the
circumstances warrant.
Section 6. Depletion of Sick Leave Benefits. Upon depletion of sick leave or the
beginning of the period to be covered by payments under long-term disability group
insurance coverage, whichever comes first, an employee may be granted a medical
leave of absence without pay for a period not exceeding sixty days. If the employee is
unable to return to work at the end of this period, he/she must request further medical
leave which will be subject to the approval of the City Manager. If further leave is granted,
the employee must notify the City of intent to return to work every thirty days. If further
leave is not granted, the employee's service with the City shall be considered terminated.
Section 7. Forfeiture Upon Termination. Employees leaving the municipal service
shall forfeit all accumulated sick leave, except as otherwise provided by law and Section
8. In the event that notice of resignation is given, sick leave may be used only through
the day which was designated as the final day of work by such notice.
Section 8. Payment for Accumulated Sick Leave. Eligible employees (those hired
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before December 31, 1983) who leave the municipal service in good standing, or who
die while employed in good standing by the City, and who have fifteen or more years of
continuous service, shall receive compensation for unused sick leave hours in a sum
equal to two and one-half percent of their unused sick leave hours multiplied by their
years of continuous service and their basic hourly rate of pay at termination. Full sick
leave accrual will be paid in the event of termination due to disability.
For new employees hired after December 31, 1983, sick leave accrual accumulation will
be limited to 1,000 hours with no payoff provisions for unused balance at termination for
any reason.
Section 9. Personal Business Leave Chargeable to Sick Leave. It is agreed
between the parties that all shift personnel represented by the Union shall have the right
to charge up to forty-eight (48) hours personal business leave per year to sick leave, and
that all non-shift personnel shall have the right to charge up to twenty (20) hours personal
business leave per year to sick leave. Such personal business leave shall be allowed
only on a staffing available basis and where the provisions of the minimum staffing
agreement are not affected. "Staffing available" means at or above minimum staffing
levels as defined in Article XII.
Section 10. Return to Work or Continue Work With Limited Duty. In cases of non-
work-related injury, illness or pregnancy an employee, upon approval of the Fire Chief
and the City Safety Officer, may return to work or continue work with doctor-approved
limited duty. Approval for such limited duty shall be based upon department ability to
provide work consistent with medical limitations and the length of time of the limitations.
Shift employees must be willing to accept any non-shift limited duty schedule work
location and may be subject to the reasonable availability of limited duty assignments.
The City doctor may be consulted in determining work limitations.
ARTICLE XXVII - SUBPOENAS
Employees required to answer subpoenas as a witness for the City of Palo Alto or for a
plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work
time lost to answer depositions or to appear in court.
ARTICLE XXVIII - WORKERS' COMPENSATION
Section 1. Status Reporting While on Disability. Persons on disability will be required
to appear or otherwise report at regular two-week intervals to the Fire Chief or designate
to discuss his/her status of medical treatment therapy and physical condition. This
section is not meant to unreasonably restrict employee's activities so long as such
activities are cleared by the treating physician, treating program or alternative treatment
program is maintained and employee is available for full or restricted duty as soon as
medical clearance can be received.
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ARTICLE XXIX - PHYSICAL FITNESS MEDICAL EXAMINATIONS
Physical fitness medical examinations for all represented employees may include chest
x-rays every three years unless otherwise directed by a physician, eye examination and
hearing examination.
ARTICLE XXX- LEAVES OF ABSENCE WITHOUT PAY
Section 1. Disability. Leaves of absence without pay may be granted in cases of
disability not covered by sick leave. Pregnancy will be considered as any other disability.
Leaves of absence for disability are subject to physician's verification including
diagnosis and medical work restriction.
Section 2. Other Leaves. Leaves of absence without pay may be granted in cases of
personal emergency or when such absences would not be contrary to the best interest
of the City. Non-disability prenatal and/or postpartum leave is available under this
provision, but such leave shall not begin more than six months prenatal nor extend more
than six months postpartum.
Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability
or other reasons, the employee may elect to use accrued vacation credits. Requests for
leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all
leaves without pay must be in writing to be effective.
Section 4. Approval of Department Head. Leave of absence without pay for one week
or less may be granted by the department head, depending on the merit of the individual
case.
Section 5. Approval by City Manager. Leave of absence without pay in excess of one
week's duration may be granted by the City Manager on the merit of the case, but such
leave shall not exceed twelve months' duration.
Section 6. Absence Without Leave. Unauthorized leave of absence shall be
considered to be without pay, and reductions in the employee's pay shall be made
accordingly. Unauthorized leave of absence may result in termination of employment.
Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without
pay may be granted a regular employee by his/her department head in the event of death
to family members other than one of the immediate family, such leave to be granted in
accordance with Section 2 and Section 4.
Section 8. Military Leave of Absence. State law shall govern the granting of military
leaves of absence and the rights of employees returning from such absence.
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Section 9. Use of paid accruals while on leave. During unpaid leaves of absence for
disability or other reasons, the employee may elect and the City may require the
employee to use accrued vacation paid leave credits in a manner consistent with state
and federal law. Requests for leaves without pay shall not be unreasonably denied. In
order to avoid misunderstandings, all leaves without pay must be in writing to be
effective.
ARTICLE XXXI - LEAVES OF ABSENCE WITH PAY
Section 1. City Manager Granted Leaves. The City Manager may grant a regular
employee under his control a leave of absence with pay for a period not exceeding thirty
calendar days for reasons he deems adequate and in the best interest of the City.
Section 2. Council Granted Leave. The City Council may grant a regular employee a
leave of absence with pay for a period not to exceed one year for reasons the Council
considers adequate and in the best interest of the City.
Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or
direct primary election shall be granted as provided in the State of California Elections
Code, and notice that an employee desires such time off shall be given in accordance
with the provisions of said Code.
Section 4. Leaves of Absence; Death in Immediate Family. Leave of absence with
pay of one shift with provision for approval of one additional shift for travel outside the
area may be granted an employee by the Chief in the event of death in the employee's
immediate family, which is defined for purposes of this section as wife, husband, son,
son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister,
sister-in-law, mother-in-law, father-in-law, grandfather, grandfather-in-law, grandmother,
grandmother-in-law, uncle, aunt, registered domestic partner, or a close relative residing
in the household of the employee. Such leave shall be at full pay and shall not be
charged against the employee's accrued vacation or sick leave. Requests for leave in
excess of two shifts shall be subject to the approval of the City Manager.
Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty
shall be granted a leave of absence with pay from their assigned duties until released
by the court, provided the employee remits to the City all fees received for such duties
other than mileage or subsistence allowances within thirty days from the termination of
his or her jury service.
ARTICLE XXXII – VOLUNTEER LEAVE PROGRAM
The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide
members of Local 1319 International Association of Fire Fighters (IAFF) employees the
opportunity to donate their accrued vacation time to assist fellow members of IAFF either
due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as
defined herein) or (b) in order to care for a member of the employee’s immediate family
(spouse, child, parent or registered domestic partner suffering from a verifiable
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catastrophic illness or injury) and have exhausted or will presently exhaust all of their
paid leave.
In order to be eligible to receive donated leave, an employee must have a catastrophic
illness or injury or an employee’s immediate family member must have a catastrophic
illness or injury that requires the employee to provide full-time care for this family
member. Care will be taken to emphasize the voluntary nature of the plan and to insure
confidentiality of employee participants and medical conditions (where applicable).
A Firefighter Voluntary Leave Sharing Program has been established to accept
donations of vacation in accordance with the Program’s guidelines. All donations shall
be:
1. Voluntary
2. Irrevocable
3. Confidential, unless disclosure is required by law
4. In whole hour increments of at least four (4) hours, with the hours donated being
converted to donee hours based on the donee’s salary rate (so that there will be
no cost to the City due to salary differential).
5. The employee shall be required to exhaust all other types of leave to request
donated leave
6. It is understood that employees seeking or receiving leave under this program
will apply for long-term disability benefits for which they may be eligible
7. Where any of the period during which an employee receives donated leave is
designated as family leave under the California Family Rights Act (CFRA/Family
Medical Leave Act (FMLA), the employee will be eligible for continuation of
medical and other available benefits during that the family leave period (for up to
12 weeks), in accordance with the requirements of those laws. If the employee
receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or
after the employee has exhausted the available CFRA/FMLA leave period, the
employee will need to pay the premiums for continued medical and other available
benefits if the employee chooses to continue such coverages through the City
8. If the donation request is based on the need for an employee to care for an
immediate family member, as defined above, the family member must require full-
time care by the employee. Certification of this requirement by a health care
professional is required
9. The maximum donated time a donee may receive is 12 months (if available).
10. Applications to donate leave or receive leave under this Program are made to
the Human Resources Department
11. This is a pilot program and is subject to cancellation by either party
IAFF members interested in donating leave or in applying to receive donated leave shall
complete forms provided by the Human Resources Department. If an applicant for leave
is found to meet the criteria set forth herein, Human Resources will determine the
availability of and (as applicable) allocation of donated paid leave. Payroll will be notified
in writing of the number of hours to be deducted from each donating employee’s vacation
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balance and transferred to the donee employee(s).
The City reserves the right to modify or terminate this program at any time.
Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling
90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non-
occupational medical condition of an employee that will require the prolonged absence
of the employee from duty and which will result in a substantial loss of income to the
employee because the employee will have exhausted all paid leave available apart from
the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as
referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury
under this Policy.
ARTICLE XXXIII- TUITION REIMBURSEMENT
Section 1. Options.
Effective July 1, 2004 the tuition reimbursement program was amended to provide each
employee the option of receiving the $1,000 as taxable cash or as a contribution to
deferred compensation. The tuition reimbursement program will be eliminated effective
July 1, 2012 with no further payouts starting in FY 12-13 and on-going.
ARTICLE XXXIV - PER DIEM TRAVEL EXPENSES
Section 1. City Business. Unless other mutually agreeable arrangements are made,
representation unit employees who are required to travel away from the City on City
business will receive travel expenses, according to City policies which are currently in
effect.
ARTICLE XXXV - HOUSE FUND ITEMS
Section 1. Station House Fund. The station house fund per year, per shift employee
shall be $100.00.
Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire
station with non-food house fund items: TV purchase and repair. Kitchen cooking
utensils, small kitchen appliances and other specific items to be determined by mutual
agreement of the parties will be purchased from the station house fund. The Fire
Fighters agree to maintain the voter registration program.
ARTICLE XXXVI - PARKING
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Section 1. Entitlements. Employees in represented classes assigned to Civic Center
or adjacent work locations shall be entitled to free parking in the Civic Center Garage,
or a commute incentive which will be subject to meet and confer. Employees hired after
July 1, 1994, may initially receive a parking permit for another downtown lot, subject to
availability of space at the Civic Center Garage. Light duty employees assigned to the
Civic Center will receive Civic Center parking temporary permits for the duration of the
light duty assignment.
ARTICLE XXXVII- GRIEVANCES
The City and the Union agree to establish a grievance procedure as follows:
1. Definition: A grievance is any complaint or dispute regarding the application of
interpretation of this Memorandum of Understanding, Department rules,
regulations, policies or procedures relating to wages, hours or other terms and
conditions of employment.
2. Any non-probationary employee represented by the Union may file and process
a grievance. Such aggrieved employees may be represented by the Union or may
represent themselves in preparing and presenting their grievance at any level of
review. The Union may file a grievance when a Union right not directly related to
an individual employee becomes subject to dispute.
3. Any retroactivity on monetary grievances shall be limited to the date of
occurrence, except in no case will retroactivity be granted prior to three months
before the grievance was filed in writing.
4. Written grievances shall be submitted on forms provided by the City or on forms
which are mutually agreeable to the City and the Union. The Union shall deliver
a copy of a written grievance to the Human Resources Department Director on
the same date that it is first filed with another City representative under the
provisions of the below grievance procedure.
5. The time limits specified in this section may be extended by mutual agreement in
writing of the aggrieved employee or Union and the reviewer concerned. Should
a decision not be rendered within a stipulated time limit, the aggrieved employee
may immediately appeal to the next step. The grievance will be considered settled
if the decision of any step is not appealed within the specified time limit.
6. If a grievance is related to a promotional process to positions within the
representation unit, Step I shall be directed to the Deputy Fire Chief (or Fire
Marshal for FPB positions).
7. Step I. The aggrieved employee will first attempt to resolve the grievance through
informal discussions with the immediate supervisor by the end of the tenth
business day following the discovery of the incident upon which the grievance is
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based. Every attempt will be made to settle the issue at this level.
Step II. If the grievance is not resolved through informal discussion, it may be
submitted in writing to the Battalion Chief (Deputy Fire Chief for Captain
grievances) within ten business days of the informal discussion. The Battalion
Chief/Assistant Fire Chief will have ten business days from receipt of the
grievance to review the matter and prepare a written response. If the grievance
is denied, the response shall contain the reasons therefore.
Step III. If the grievance is not resolved in Step II, it may be submitted in writing
to the Fire Chief within ten business days of receipt of the Battalion Chief's/
Deputy Fire Chief's written response. The Fire Chief will have ten business days
from receipt of the grievance to review the matter and prepare a written response.
If the grievance is denied, the response shall contain the reasons therefore.
Step IV. If the grievance is not resolved in Step III, the aggrieved employee may
submit the grievance to the City Manager for final determination or to
bindinggrievance arbitration. All Step IV appeals must be filed in writing at the
Human Resources Department Office within ten business days of receipt of the
Fire Chief's response under Step III. All hearings before the City Manager shall
be pursuant to the rules and regulations set forth in the City of Palo Alto Merit
Rules and Regulations. Hearings before an arbitrator will be as set forth below.
In the event the aggrieved employee decides to proceed to arbitration, he/she
shall select jointly with the Director of Human Resources an arbitrator. If the
parties are unable to agree on an arbitrator, they shall jointly request a panel of
five qualified and experienced arbitrators from the State Conciliation Service.
Upon receipt of the list of arbitrators, the names shall be alternately struck until
one name remains who shall serve as arbitrator. The arbitrator shall be jointly
contacted by the parties.
The arbitrator shall have jurisdiction and authority only to interpret, apply, or
determine compliance with the provisions of the Memorandum of Agreement and
such Merit System rules, regulations, policies, procedures, City ordinances or
regulations relating to terms or conditions of employment, wages or fringe
benefits, as may hereafter be in effect in the City insofar as may be necessary to
the determination of grievances appealed to the arbitrator. The arbitrator shall
be without power to make any decision:
a. Regarding matters of interest.
b. Contrary to, or inconsistent with or modifying in any way, the terms of this
Memorandum of Agreement.
c. Granting any wage increases or decreases.
d. Granting pay or benefits for any period of time prior to the execution date of
this Memorandum of Agreement.
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Where either party seeks arbitration and the other party claims the matter is not
subject to the arbitration provisions of the Memorandum of Agreement, the issue
of arbitrability shall first be decided by the arbitrator using the standards and
criteria set forth in this Memorandum of Agreement.
The arbitrator shall be without authority to require the City to delegate or relinquish
any powers which by State law or City Charter the City cannot delegate or
relinquish. Copies of the arbitrator's decision shall be submitted to the City and
the aggrieved employee. All direct costs emanating from the arbitration procedure
shall be shared equally by the City and the aggrieved employee or the Union.
It is further agreed that the provisions of this section shall be incorporated as part
of Chapter 11 of the City of Palo Alto Merit System Rules and Regulations.
Existing procedures set forth in Chapter 11, to the extent they are inconsistent
with the provisions contained herein, are superseded.
ARTICLE XXXVIII- SAFETY COMMITTEE
Section 1. Committee A Safety Committee comprised of four representation unit
members appointed by the Union, and at least two members of Management, will
continue to meet. The Committee may make safety recommendations to the Fire Chief
regarding equipment, vehicles and apparatus and may review all accidents involving
represented personnel. Management shall inform the Safety Committee of all accidents
involving injuries to represented personnel.
ARTICLE XXXIX – MISCELLANEOUS
Section 1. Section 1. Uniforms.
The value of the purchase, rental and/or maintenance of the required
uniforms shall be reported as special compensation to the extent legally
permissible, pursuant to Title 2 CCR, Section 571(a)(5) as Uniform
Allowance. Based upon existing uniform standards and the City’s cost
experience, the value of this benefit shall be reported as $15.31 per pay
period.
The City will supply complete uniforms as described in Fire Department
Policy 1031. The City will issue four T-shirts to each uniformed employee
each July These T-shirts are for use on duty only and will be maintained by
the employee.
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Section 2. Removal of Disciplinary Actions. Records of disciplinary actions shall be
removed from the personnel file of a representation unit employee upon written request
by the employee after a period of three years, or sooner if mutually agreed by the Fire
Chief and the employee.
ARTICLE XL - FULL UNDERSTANDING
Section 1. Full and Entire Understanding. The Memorandum of Agreement contains
the full and entire understanding of the parties regarding the matters set forth herein.
Section 2. Fair Labor Standards Act. Compensatory time off with Management
approval may be used as an alternative to overtime compensation only within the 27-
day work period within which the overtime is worked.
Section 3. Severability. Should any of the provisions herein contained be rendered or
declared invalid by reason of any existing State or Federal legislation or by reason of
State or U.S. Supreme Court ruling, such invalidation of such part or portion of this
Memorandum of Agreement shall not invalidate the remaining portions hereof, and they
shall remain in full force and effect, insofar as such remaining portions are severable.
Section 4. Good Faith. It is the intent of the parties that ordinances, resolutions, rules
and regulations enacted pursuant to this Memorandum of Understanding be
administered and observed in good faith.
Section 5. Merit System Rules and Regulations. During the term of this Memorandum
of Agreement, Management may propose certain changes in the City Merit System
Rules and Regulations. With regard to such changes which pertain to the representation
unit, the parties agree to review, and upon request, meet and confer regarding the
changes.
Section 6. Station Consolidation or Relocation . During the term of this agreement,
at management request, the parties agree to meet and confer with regard to issues
pertaining to fire station consolidation or relocation.
Section 7. Meet and Confer. Nothing in this agreement shall preclude the parties from
mutually agreeing to meet and confer on any subject within the scope of representation
during the term of this agreement.
ARTICLE XLI – 48/96 Work Schedule
The regular schedule for 56 hour personnel will be under a “48/96” model. With the
adoption of this “48/96” schedule the parties agreed to revise Fire Department policy
205.6 typical workday and 1009.8.1 Reporting for Duty- Holidays.
ARTICLE XLII – FUTURE SERVICE DELIVERY MODELS
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Effective upon request of the City, the parties will meet and confer in good faith
regarding the service delivery model of current inspection services and transport during
the term of this Agreement.
ARTICLE XLIII - DURATION
This Memorandum of Agreement shall become effective upon ratification by both
parties hereto and remain in effect through June 30, 2025.
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EXECUTED:
FOR: FOR:
INTERNATIONAL ASSOCIATION CITY OF PALO ALTO
FIRE FIGHTERS
__
__
_____ __
__
___
__________
__________
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Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
1 29.99$ 1 31.20$
2 31.57$ 2 32.84$
3 33.23$ 3 34.57$
4 34.98$ 4 36.39$
5 36.82$ 6,382$ 76,586$ 5 38.30$ 6,639$ 79,664$
1 35.04$ 1 36.44$
2 36.88$ 2 38.36$
3 38.82$ 3 40.38$
4 40.86$ 4 42.50$
5 43.01$ 7,455$ 89,461$ 5 44.74$ 7,755$ 93,059$
1 37.52$ 1 39.02$
2 39.49$ 2 41.07$
3 41.57$ 3 43.23$
4 43.76$ 4 45.51$
5 46.06$ 7,984$ 95,805$ 5 47.91$ 8,304$ 99,653$
1 31.15$ 1 32.40$
2 32.79$ 2 34.11$
3 34.52$ 3 35.90$
4 36.34$ 4 37.79$
5 38.25$ 6,630$ 79,560$ 5 39.78$ 6,895$ 82,742$
1 33.85$ 1 35.21$
2 35.63$ 2 37.06$
3 37.50$ 3 39.01$
4 39.47$ 4 41.06$
5 41.55$ 7,202$ 86,424$ 5 43.22$ 7,491$ 89,898$
1 36.27$ 1 37.73$
2 38.18$ 2 39.72$
3 40.19$ 3 41.81$
4 42.31$ 4 44.01$
5 44.54$ 7,720$ 92,643$ 5 46.33$ 8,031$ 96,366$
1 31.83$ 1 33.12$
2 33.51$ 2 34.86$
3 35.27$ 3 36.69$
4 37.13$ 4 38.62$
5 39.08$ 6,774$ 81,286$ 5 40.65$ 7,046$ 84,552$
1 34.05$ 1 35.43$
2 35.84$ 2 37.29$
3 37.73$ 3 39.25$
4 39.72$ 4 41.32$
5 41.81$ 7,247$ 86,965$ 5 43.49$ 7,538$ 90,459$
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
Administrative Associate II
206 Non‐Exempt Acct Assistant
204 Non‐Exempt Acct Spec
296 Non‐Exempt Administrative Associate III
Non‐Exempt Animal Control Off
312 Non‐Exempt Animal Control Off - L
276
295 Non‐Exempt
207 Non‐Exempt Acct Spec-Lead
294 Non‐Exempt Administrative Associate I
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Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 42.63$ 1 44.34$
2 44.87$ 2 46.67$
3 47.23$ 3 49.13$
4 49.72$ 4 51.72$
5 52.34$ 9,072$ 108,867$ 5 54.44$ 9,436$ 113,235$
1 57.86$ 1 60.19$
2 60.91$ 2 63.36$
3 64.12$ 3 66.69$
4 67.49$ 4 70.20$
5 71.04$ 12,314$ 147,763$ 5 73.89$ 12,808$ 153,691$
1 46.42$ 1 48.28$
2 48.86$ 2 50.82$
3 51.43$ 3 53.49$
4 54.14$ 4 56.31$
5 56.99$ 9,878$ 118,539$ 5 59.27$ 10,273$ 123,282$
1 61.62$ 1 64.08$
2 64.86$ 2 67.45$
3 68.27$ 3 71.00$
4 71.86$ 4 74.74$
5 75.64$ 13,111$ 157,331$ 5 78.67$ 13,636$ 163,634$
1 53.72$ 1 55.87$
2 56.55$ 2 58.81$
3 59.53$ 3 61.91$
4 62.66$ 4 65.17$
5 65.96$ 11,433$ 137,197$ 5 68.60$ 11,891$ 142,688$
1 52.42$ 1 54.52$
2 55.18$ 2 57.39$
3 58.08$ 3 60.41$
4 61.14$ 4 63.59$
5 64.36$ 11,156$ 133,869$ 5 66.94$ 11,603$ 139,235$
1 55.64$ 1 57.86$
2 58.57$ 2 60.91$
3 61.65$ 3 64.12$
4 64.89$ 4 67.49$
5 68.30$ 11,839$ 142,064$ 5 71.04$ 12,314$ 147,763$
1 48.51$ 1 50.45$
2 51.06$ 2 53.11$
3 53.75$ 3 55.91$
4 56.58$ 4 58.85$
5 59.56$ 10,324$ 123,885$ 5 61.95$ 10,738$ 128,856$
244 Non‐Exempt Assoc Buyer
333
269 Non‐Exempt Assoc Res Planner
330 Non‐Exempt Asst Engineer
353 Non‐Exempt Assoc Planner
247 Non‐Exempt Assoc Power Engr
Non‐Exempt Assoc Engineer
256 Non‐Exempt Asst Power Engr
268 Non‐Exempt Asst Res Planner
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Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 48.56$ 1 50.50$
2 51.12$ 2 53.16$
3 53.81$ 3 55.96$
4 56.64$ 4 58.91$
5 59.62$ 10,334$ 124,010$ 5 62.01$ 10,748$ 128,981$
1 51.85$ 1 53.92$
2 54.58$ 2 56.76$
3 57.45$ 3 59.75$
4 60.47$ 4 62.89$
5 63.65$ 11,033$ 132,392$ 5 66.20$ 11,475$ 137,696$
1 27.94$ 1 29.07$
2 29.41$ 2 30.60$
3 30.96$ 3 32.21$
4 32.59$ 4 33.91$
5 34.31$ 5,947$ 71,365$ 5 35.69$ 6,186$ 74,235$
1 29.91$ 1 31.11$
2 31.48$ 2 32.75$
3 33.14$ 3 34.47$
4 34.88$ 4 36.28$
5 36.72$ 6,365$ 76,378$ 5 38.19$ 6,620$ 79,435$
1 37.64$ 1 39.16$
2 39.62$ 2 41.22$
3 41.71$ 3 43.39$
4 43.91$ 4 45.67$
5 46.22$ 8,011$ 96,138$ 5 48.07$ 8,332$ 99,986$
1 66.45$ 1 69.12$
2 69.95$ 2 72.76$
3 73.63$ 3 76.59$
4 77.51$ 4 80.62$
5 81.59$ 14,142$ 169,707$ 5 84.86$ 14,709$ 176,509$
1 66.45$ 1 69.12$
2 69.95$ 2 72.76$
3 73.63$ 3 76.59$
4 77.51$ 4 80.62$
5 81.59$ 14,142$ 169,707$ 5 84.86$ 14,709$ 176,509$
1 46.94$ 1 48.82$
2 49.41$ 2 51.39$
3 52.01$ 3 54.09$
4 54.75$ 4 56.94$
5 57.63$ 9,989$ 119,870$ 5 59.94$ 10,390$ 124,675$
3400 Non‐Exempt Business Analyst - S
212 Non‐Exempt Buyer
355 Non‐Exempt Bldg/Plg Technician
340 Non‐Exempt Business Analyst
370 Non‐Exempt Bldg Serviceperson
371 Non‐Exempt Bldg Serviceperson-L
299 Non‐Exempt Bldg Inspector
300 Non‐Exempt Bldg Inspector Spec
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 243
Packet Pg. 304 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 47.49$ 1 49.39$
2 49.99$ 2 51.99$
3 52.62$ 3 54.73$
4 55.39$ 4 57.61$
5 58.30$ 10,105$ 121,264$ 5 60.64$ 10,511$ 126,131$
1 58.26$ 1 60.61$
2 61.33$ 2 63.80$
3 64.56$ 3 67.16$
4 67.96$ 4 70.69$
5 71.54$ 12,400$ 148,803$ 5 74.41$ 12,898$ 154,773$
1 49.61$ 1 51.59$
2 52.22$ 2 54.31$
3 54.97$ 3 57.17$
4 57.86$ 4 60.18$
5 60.91$ 10,558$ 126,693$ 5 63.35$ 10,981$ 131,768$
1 40.34$ 1 41.95$
2 42.46$ 2 44.16$
3 44.69$ 3 46.48$
4 47.04$ 4 48.93$
5 49.52$ 8,583$ 103,002$ 5 51.51$ 8,928$ 107,141$
1 43.13$ 1 44.86$
2 45.40$ 2 47.22$
3 47.79$ 3 49.71$
4 50.31$ 4 52.33$
5 52.96$ 9,180$ 110,157$ 5 55.08$ 9,547$ 114,566$
1 48.06$ 1 49.98$
2 50.59$ 2 52.61$
3 53.25$ 3 55.38$
4 56.05$ 4 58.29$
5 59.00$ 10,227$ 122,720$ 5 61.36$ 10,636$ 127,629$
1 51.95$ 1 54.04$
2 54.68$ 2 56.88$
3 57.56$ 3 59.87$
4 60.59$ 4 63.02$
5 63.78$ 11,055$ 132,662$ 5 66.34$ 11,499$ 137,987$
1 46.66$ 1 48.53$
2 49.12$ 2 51.08$
3 51.70$ 3 53.77$
4 54.42$ 4 56.60$
5 57.28$ 9,929$ 119,142$ 5 59.58$ 10,327$ 123,926$
239 Non‐Exempt Chf Inspec WGW
301 Non‐Exempt Code Enforcement Off
409 Non‐Exempt Cement Finisher Lead
502 Non‐Exempt Chemist
208 Non‐Exempt CDBG Coordinator
408 Non‐Exempt Cement Finisher
464 Non‐Exempt Cathodic Protection Tech Assistant
536 Non‐Exempt Cathodic Tech
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 244
Packet Pg. 305 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 49.91$ 1 51.90$
2 52.54$ 2 54.63$
3 55.30$ 3 57.51$
4 58.21$ 4 60.54$
5 61.27$ 10,620$ 127,442$ 5 63.73$ 11,047$ 132,558$
1 46.35$ 1 48.21$
2 48.79$ 2 50.75$
3 51.36$ 3 53.42$
4 54.06$ 4 56.23$
5 56.91$ 9,864$ 118,373$ 5 59.19$ 10,260$ 123,115$
1 35.16$ 1 36.58$
2 37.01$ 2 38.50$
3 38.96$ 3 40.53$
4 41.01$ 4 42.66$
5 43.17$ 7,483$ 89,794$ 5 44.90$ 7,783$ 93,392$
1 37.60$ 1 39.10$
2 39.58$ 2 41.16$
3 41.66$ 3 43.33$
4 43.85$ 4 45.61$
5 46.16$ 8,001$ 96,013$ 5 48.01$ 8,322$ 99,861$
1 48.43$ 1 50.36$
2 50.98$ 2 53.01$
3 53.66$ 3 55.80$
4 56.48$ 4 58.74$
5 59.45$ 10,305$ 123,656$ 5 61.83$ 10,717$ 128,606$
1 48.43$ 1 50.36$
2 50.98$ 2 53.01$
3 53.66$ 3 55.80$
4 56.48$ 4 58.74$
5 59.45$ 10,305$ 123,656$ 5 61.83$ 10,717$ 128,606$
1 46.36$ 1 48.22$
2 48.80$ 2 50.76$
3 51.37$ 3 53.43$
4 54.07$ 4 56.24$
5 56.92$ 9,866$ 118,394$ 5 59.20$ 10,261$ 123,136$
1 46.02$ 1 47.85$
2 48.44$ 2 50.37$
3 50.99$ 3 53.02$
4 53.67$ 4 55.81$
5 56.49$ 9,792$ 117,499$ 5 58.75$ 10,183$ 122,200$
Non‐Exempt Coord Pub Wks Proj
255 Non‐Exempt Coord Library Prog
342
341 Non‐Exempt Coor Trans Sys Mgmt
3410 Non‐Exempt Coor Trans Sys Mgmt - S
702 Non‐Exempt Community Serv Offcr
320 Non‐Exempt Community Service Officer - Lead
560 Non‐Exempt Code Enforcement Off - L
306 Non‐Exempt Comm Tech
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 245
Packet Pg. 306 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 39.52$ 1 41.11$
2 41.60$ 2 43.27$
3 43.79$ 3 45.55$
4 46.09$ 4 47.95$
5 48.52$ 8,410$ 100,922$ 5 50.47$ 8,748$ 104,978$
1 49.69$ 1 51.68$
2 52.30$ 2 54.40$
3 55.05$ 3 57.26$
4 57.95$ 4 60.27$
5 61.00$ 10,573$ 126,880$ 5 63.44$ 10,996$ 131,955$
1 49.69$ 1 51.68$
2 52.30$ 2 54.40$
3 55.05$ 3 57.26$
4 57.95$ 4 60.27$
5 61.00$ 10,573$ 126,880$ 5 63.44$ 10,996$ 131,955$
1 44.16$ 1 45.93$
2 46.48$ 2 48.35$
3 48.93$ 3 50.89$
4 51.51$ 4 53.57$
5 54.22$ 9,398$ 112,778$ 5 56.39$ 9,774$ 117,291$
1 45.76$ 1 47.59$
2 48.17$ 2 50.09$
3 50.70$ 3 52.73$
4 53.37$ 4 55.51$
5 56.18$ 9,738$ 116,854$ 5 58.43$ 10,128$ 121,534$
1 45.76$ 1 47.59$
2 48.17$ 2 50.09$
3 50.70$ 3 52.73$
4 53.37$ 4 55.51$
5 56.18$ 9,738$ 116,854$ 5 58.43$ 10,128$ 121,534$
1 38.69$ 1 40.25$
2 40.73$ 2 42.37$
3 42.87$ 3 44.60$
4 45.13$ 4 46.95$
5 47.51$ 8,235$ 98,821$ 5 49.42$ 8,566$ 102,794$
1 32.92$ 1 34.23$
2 34.65$ 2 36.03$
3 36.47$ 3 37.93$
4 38.39$ 4 39.93$
5 40.41$ 7,004$ 84,053$ 5 42.03$ 7,285$ 87,422$
415 Non‐Exempt Cust Srv Specialist-L
218 Non‐Exempt Cust Svc Represent
205 Non‐Exempt Court Liaison Officer
242 Non‐Exempt Coord Zero Waste
317 Non‐Exempt Coord Rec Prog
344 Non‐Exempt Coord Utility Proj
214 Non‐Exempt Crime Analyst
3440 Non‐Exempt Coord Utility Proj - S
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 246
Packet Pg. 307 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 36.20$ 1 37.64$
2 38.10$ 2 39.62$
3 40.10$ 3 41.71$
4 42.21$ 4 43.90$
5 44.43$ 7,701$ 92,414$ 5 46.21$ 8,010$ 96,117$
1 44.86$ 1 46.66$
2 47.22$ 2 49.12$
3 49.71$ 3 51.71$
4 52.33$ 4 54.43$
5 55.08$ 9,547$ 114,566$ 5 57.29$ 9,930$ 119,163$
1 37.31$ 1 38.82$
2 39.27$ 2 40.86$
3 41.34$ 3 43.01$
4 43.52$ 4 45.27$
5 45.81$ 7,940$ 95,285$ 5 47.65$ 8,259$ 99,112$
1 42.39$ 1 44.09$
2 44.62$ 2 46.41$
3 46.97$ 3 48.85$
4 49.44$ 4 51.42$
5 52.04$ 9,020$ 108,243$ 5 54.13$ 9,383$ 112,590$
1 46.75$ 1 48.63$
2 49.21$ 2 51.19$
3 51.80$ 3 53.88$
4 54.53$ 4 56.72$
5 57.40$ 9,949$ 119,392$ 5 59.70$ 10,348$ 124,176$
1 42.05$ 1 43.74$
2 44.26$ 2 46.04$
3 46.59$ 3 48.46$
4 49.04$ 4 51.01$
5 51.62$ 8,947$ 107,370$ 5 53.69$ 9,306$ 111,675$
1 52.96$ 1 55.09$
2 55.75$ 2 57.99$
3 58.68$ 3 61.04$
4 61.77$ 4 64.25$
5 65.02$ 11,270$ 135,242$ 5 67.63$ 11,723$ 140,670$
1 73.81$ 1 76.76$
2 77.69$ 2 80.80$
3 81.78$ 3 85.05$
4 86.08$ 4 89.53$
5 90.61$ 15,706$ 188,469$ 5 94.24$ 16,335$ 196,019$
Electric Project EngineerNon‐Exempt345
533 Non‐Exempt Elec Asst I
267 Non‐Exempt Elec Undgd Inspec
Non‐Exempt Desktop Technician
516 Non‐Exempt Development Project Coordinator III
514 Non‐Exempt Development Project Coordinator I
515 Non‐Exempt Development Project Coordinator II
217 Non‐Exempt Cust Svc Spec
260
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 247
Packet Pg. 308 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 73.81$ 1 76.76$
2 77.69$ 2 80.80$
3 81.78$ 3 85.05$
4 86.08$ 4 89.53$
5 90.61$ 15,706$ 188,469$ 5 94.24$ 16,335$ 196,019$
1 56.63$ 1 58.91$
2 59.61$ 2 62.01$
3 62.75$ 3 65.27$
4 66.05$ 4 68.70$
5 69.53$ 12,052$ 144,622$ 5 72.32$ 12,535$ 150,426$
1 54.11$ 1 56.29$
2 56.96$ 2 59.25$
3 59.96$ 3 62.37$
4 63.12$ 4 65.65$
5 66.44$ 11,516$ 138,195$ 5 69.10$ 11,977$ 143,728$
1 51.31$ 1 53.35$
2 54.01$ 2 56.16$
3 56.85$ 3 59.12$
4 59.84$ 4 62.23$
5 62.99$ 10,918$ 131,019$ 5 65.51$ 11,355$ 136,261$
1 48.57$ 1 50.51$
2 51.13$ 2 53.17$
3 53.82$ 3 55.97$
4 56.65$ 4 58.92$
5 59.63$ 10,336$ 124,030$ 5 62.02$ 10,750$ 129,002$
1 54.95$ 1 57.13$
2 57.84$ 2 60.14$
3 60.88$ 3 63.31$
4 64.08$ 4 66.64$
5 67.45$ 11,691$ 140,296$ 5 70.15$ 12,159$ 145,912$
1 36.27$ 1 37.73$
2 38.18$ 2 39.72$
3 40.19$ 3 41.81$
4 42.31$ 4 44.01$
5 44.54$ 7,720$ 92,643$ 5 46.33$ 8,031$ 96,366$
1 36.16$ 1 37.61$
2 38.06$ 2 39.59$
3 40.06$ 3 41.67$
4 42.17$ 4 43.86$
5 44.39$ 7,694$ 92,331$ 5 46.17$ 8,003$ 96,034$
Electric Project Engineer - S
Electric Underground Inspector -
Lead
Electrical Equipment Tech
Electrician
Electrician-Appren
Electrician-Lead
Emergency Med Svs Data
Specialist
Eng Tech I
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
3450
292
527
530
529
535
399
311
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 248
Packet Pg. 309 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 65.18$ 1 67.79$
2 68.61$ 2 71.36$
3 72.22$ 3 75.12$
4 76.02$ 4 79.07$
5 80.02$ 13,870$ 166,442$ 5 83.23$ 14,427$ 173,118$
1 39.11$ 1 40.69$
2 41.17$ 2 42.83$
3 43.34$ 3 45.08$
4 45.62$ 4 47.45$
5 48.02$ 8,323$ 99,882$ 5 49.95$ 8,658$ 103,896$
1 43.68$ 1 45.43$
2 45.98$ 2 47.82$
3 48.40$ 3 50.34$
4 50.95$ 4 52.99$
5 53.63$ 9,296$ 111,550$ 5 55.78$ 9,669$ 116,022$
1 53.45$ 1 55.59$
2 56.26$ 2 58.52$
3 59.22$ 3 61.60$
4 62.34$ 4 64.84$
5 65.62$ 11,374$ 136,490$ 5 68.25$ 11,830$ 141,960$
1 30.67$ 1 31.89$
2 32.28$ 2 33.57$
3 33.98$ 3 35.34$
4 35.77$ 4 37.20$
5 37.65$ 6,526$ 78,312$ 5 39.16$ 6,788$ 81,453$
1 39.55$ 1 41.14$
2 41.63$ 2 43.30$
3 43.82$ 3 45.58$
4 46.13$ 4 47.98$
5 48.56$ 8,417$ 101,005$ 5 50.51$ 8,755$ 105,061$
1 42.32$ 1 44.01$
2 44.55$ 2 46.33$
3 46.89$ 3 48.77$
4 49.36$ 4 51.34$
5 51.96$ 9,006$ 108,077$ 5 54.04$ 9,367$ 112,403$
1 34.63$ 1 36.02$
2 36.45$ 2 37.92$
3 38.37$ 3 39.92$
4 40.39$ 4 42.02$
5 42.52$ 7,370$ 88,442$ 5 44.23$ 7,667$ 91,998$
Engineer
Engr Tech II
Engr Tech III
Environmental Spec
Equip Maint Serv Per
Equip Operator
Equip Operator - Lead
Equip Parts Tech
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
332
323
319
257
211
396
397
250
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 249
Packet Pg. 310 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 30.96$ 1 32.19$
2 32.59$ 2 33.88$
3 34.30$ 3 35.66$
4 36.10$ 4 37.54$
5 38.00$ 6,587$ 79,040$ 5 39.52$ 6,850$ 82,202$
1 41.93$ 1 43.60$
2 44.14$ 2 45.89$
3 46.46$ 3 48.31$
4 48.90$ 4 50.85$
5 51.47$ 8,921$ 107,058$ 5 53.53$ 9,279$ 111,342$
1 42.52$ 1 44.23$
2 44.76$ 2 46.56$
3 47.12$ 3 49.01$
4 49.60$ 4 51.59$
5 52.21$ 9,050$ 108,597$ 5 54.30$ 9,412$ 112,944$
1 52.08$ 1 54.17$
2 54.82$ 2 57.02$
3 57.71$ 3 60.02$
4 60.75$ 4 63.18$
5 63.95$ 11,085$ 133,016$ 5 66.51$ 11,528$ 138,341$
1 40.34$ 1 41.95$
2 42.46$ 2 44.16$
3 44.69$ 3 46.48$
4 47.04$ 4 48.93$
5 49.52$ 8,583$ 103,002$ 5 51.51$ 8,928$ 107,141$
1 41.93$ 1 43.60$
2 44.14$ 2 45.89$
3 46.46$ 3 48.31$
4 48.90$ 4 50.85$
5 51.47$ 8,921$ 107,058$ 5 53.53$ 9,279$ 111,342$
1 39.47$ 1 41.06$
2 41.55$ 2 43.22$
3 43.74$ 3 45.49$
4 46.04$ 4 47.88$
5 48.46$ 8,400$ 100,797$ 5 50.40$ 8,736$ 104,832$
1 41.24$ 1 42.88$
2 43.41$ 2 45.14$
3 45.69$ 3 47.52$
4 48.09$ 4 50.02$
5 50.62$ 8,774$ 105,290$ 5 52.65$ 9,126$ 109,512$
Non‐Exempt Facilities Carpenter
Facilities Asst
Facilities Elect
Facilities Maint-L
Facilities Painter
Facilities Tech
Field Service Pers WGW
Fleet Svcs Coord
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
375
373
377
376
462
383
203
374
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 250
Packet Pg. 311 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 44.92$ 1 46.72$
2 47.28$ 2 49.18$
3 49.77$ 3 51.77$
4 52.39$ 4 54.49$
5 55.15$ 9,559$ 114,712$ 5 57.36$ 9,942$ 119,309$
1 47.18$ 1 49.07$
2 49.66$ 2 51.65$
3 52.27$ 3 54.37$
4 55.02$ 4 57.23$
5 57.92$ 10,039$ 120,474$ 5 60.24$ 10,442$ 125,299$
1 47.18$ 1 49.07$
2 49.66$ 2 51.65$
3 52.27$ 3 54.37$
4 55.02$ 4 57.23$
5 57.92$ 10,039$ 120,474$ 5 60.24$ 10,442$ 125,299$
1 47.18$ 1 49.07$
2 49.66$ 2 51.65$
3 52.27$ 3 54.37$
4 55.02$ 4 57.23$
5 57.92$ 10,039$ 120,474$ 5 60.24$ 10,442$ 125,299$
1 55.79$ 1 58.03$
2 58.73$ 2 61.08$
3 61.82$ 3 64.29$
4 65.07$ 4 67.67$
5 68.49$ 11,872$ 142,459$ 5 71.23$ 12,347$ 148,158$
1 47.34$ 1 49.24$
2 49.83$ 2 51.83$
3 52.45$ 3 54.56$
4 55.21$ 4 57.43$
5 58.12$ 10,074$ 120,890$ 5 60.45$ 10,478$ 125,736$
1 50.62$ 1 52.64$
2 53.28$ 2 55.41$
3 56.08$ 3 58.33$
4 59.03$ 4 61.40$
5 62.14$ 10,771$ 129,251$ 5 64.63$ 11,203$ 134,430$
1 50.27$ 1 52.29$
2 52.92$ 2 55.04$
3 55.71$ 3 57.94$
4 58.64$ 4 60.99$
5 61.73$ 10,700$ 128,398$ 5 64.20$ 11,128$ 133,536$
Assistant Gas and Water
Measurement and Control
Technician
Gas and Water Measurement and
Control Technician
Geographic Inform Syst Specialist
Heavy Equip Oper
Heavy Equip Oper-L
Electric Heavy Equip Oper
Assistant Gas Measurement and
Control Technician
Gas Measurement and Control
Technician
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
417
416
398
390
391
571
419
418
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 251
Packet Pg. 312 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 46.93$ 1 48.81$
2 49.40$ 2 51.38$
3 52.00$ 3 54.08$
4 54.74$ 4 56.93$
5 57.62$ 9,987$ 119,850$ 5 59.93$ 10,388$ 124,654$
1 44.91$ 1 46.71$
2 47.27$ 2 49.17$
3 49.76$ 3 51.76$
4 52.38$ 4 54.48$
5 55.14$ 9,558$ 114,691$ 5 57.35$ 9,941$ 119,288$
1 50.45$ 1 52.48$
2 53.11$ 2 55.24$
3 55.91$ 3 58.15$
4 58.85$ 4 61.21$
5 61.95$ 10,738$ 128,856$ 5 64.43$ 11,168$ 134,014$
1 40.56$ 1 42.18$
2 42.69$ 2 44.40$
3 44.94$ 3 46.74$
4 47.30$ 4 49.20$
5 49.79$ 8,630$ 103,563$ 5 51.79$ 8,977$ 107,723$
1 46.90$ 1 48.79$
2 49.37$ 2 51.36$
3 51.97$ 3 54.06$
4 54.70$ 4 56.90$
5 57.58$ 9,981$ 119,766$ 5 59.89$ 10,381$ 124,571$
1 48.38$ 1 50.32$
2 50.93$ 2 52.97$
3 53.61$ 3 55.76$
4 56.43$ 4 58.69$
5 59.40$ 10,296$ 123,552$ 5 61.78$ 10,709$ 128,502$
1 35.35$ 1 36.77$
2 37.21$ 2 38.70$
3 39.17$ 3 40.74$
4 41.23$ 4 42.88$
5 43.40$ 7,523$ 90,272$ 5 45.14$ 7,824$ 93,891$
1 42.99$ 1 44.72$
2 45.25$ 2 47.07$
3 47.63$ 3 49.55$
4 50.14$ 4 52.16$
5 52.78$ 9,149$ 109,782$ 5 54.90$ 9,516$ 114,192$
Ind Waste Inspec
Ind Waste Invtgtr
Industrial Waste Technician
Inspector, Field Svc
Instrum Elec
Educator
Laboratory Tech Wqc
WGW Heavy Equip Oper
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
508
258
365
227
308
293
503
572
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 252
Packet Pg. 313 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 47.62$ 1 49.53$
2 50.13$ 2 52.14$
3 52.77$ 3 54.88$
4 55.55$ 4 57.77$
5 58.47$ 10,135$ 121,618$ 5 60.81$ 10,540$ 126,485$
1 37.44$ 1 38.93$
2 39.41$ 2 40.98$
3 41.48$ 3 43.14$
4 43.66$ 4 45.41$
5 45.96$ 7,966$ 95,597$ 5 47.80$ 8,285$ 99,424$
1 34.33$ 1 35.71$
2 36.14$ 2 37.59$
3 38.04$ 3 39.57$
4 40.04$ 4 41.65$
5 42.15$ 7,306$ 87,672$ 5 43.84$ 7,599$ 91,187$
1 32.49$ 1 33.79$
2 34.20$ 2 35.57$
3 36.00$ 3 37.44$
4 37.89$ 4 39.41$
5 39.88$ 6,913$ 82,950$ 5 41.48$ 7,190$ 86,278$
1 72.85$ 1 75.76$
2 76.68$ 2 79.75$
3 80.72$ 3 83.95$
4 84.97$ 4 88.37$
5 89.44$ 15,503$ 186,035$ 5 93.02$ 16,123$ 193,482$
1 77.95$ 1 81.06$
2 82.05$ 2 85.33$
3 86.37$ 3 89.82$
4 90.92$ 4 94.55$
5 95.70$ 16,588$ 199,056$ 5 99.53$ 17,252$ 207,022$
1 69.39$ 1 72.16$
2 73.04$ 2 75.96$
3 76.88$ 3 79.96$
4 80.93$ 4 84.17$
5 85.19$ 14,766$ 177,195$ 5 88.60$ 15,357$ 184,288$
1 74.20$ 1 77.18$
2 78.11$ 2 81.24$
3 82.22$ 3 85.52$
4 86.55$ 4 90.02$
5 91.11$ 15,792$ 189,509$ 5 94.76$ 16,425$ 197,101$
Library Associate
Library Specialist
Lineper/Cable Spl
Lineper/Cable Spl-L
Lineperson/Cable Spl-T
Lineperson/Cable Spl-TL
Landfill Technician
Librarian
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
252
253
541
542
531
532
413
254
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 253
Packet Pg. 314 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 62.59$ 1 65.08$
2 65.88$ 2 68.51$
3 69.35$ 3 72.12$
4 73.00$ 4 75.92$
5 76.84$ 13,319$ 159,827$ 5 79.92$ 13,853$ 166,234$
1 26.51$ 1 27.58$
2 27.90$ 2 29.03$
3 29.37$ 3 30.56$
4 30.92$ 4 32.17$
5 32.55$ 5,642$ 67,704$ 5 33.86$ 5,869$ 70,429$
1 47.43$ 1 49.33$
2 49.93$ 2 51.93$
3 52.56$ 3 54.66$
4 55.33$ 4 57.54$
5 58.24$ 10,095$ 121,139$ 5 60.57$ 10,499$ 125,986$
1 39.42$ 1 40.99$
2 41.49$ 2 43.15$
3 43.67$ 3 45.42$
4 45.97$ 4 47.81$
5 48.39$ 8,388$ 100,651$ 5 50.33$ 8,724$ 104,686$
1 39.42$ 1 40.99$
2 41.49$ 2 43.15$
3 43.67$ 3 45.42$
4 45.97$ 4 47.81$
5 48.39$ 8,388$ 100,651$ 5 50.33$ 8,724$ 104,686$
1 65.18$ 1 67.79$
2 68.61$ 2 71.36$
3 72.22$ 3 75.12$
4 76.02$ 4 79.07$
5 80.02$ 13,870$ 166,442$ 5 83.23$ 14,427$ 173,118$
1 33.98$ 1 35.34$
2 35.77$ 2 37.20$
3 37.65$ 3 39.16$
4 39.63$ 4 41.22$
5 41.72$ 7,231$ 86,778$ 5 43.39$ 7,521$ 90,251$
1 36.37$ 1 37.82$
2 38.28$ 2 39.81$
3 40.29$ 3 41.90$
4 42.41$ 4 44.11$
5 44.64$ 7,738$ 92,851$ 5 46.43$ 8,048$ 96,574$
Management Assistant
Management Assistant - S
Marketing Eng
Meter Reader
Meter Reader-Lead
Lnper/Cbl Spl-Appren
Mailing Svcs Spec
Maintenance Mechanic-Welding
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
346
3460
216
241
240
528
213
291
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 254
Packet Pg. 315 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 40.00$ 1 41.61$
2 42.11$ 2 43.80$
3 44.33$ 3 46.11$
4 46.66$ 4 48.54$
5 49.12$ 8,514$ 102,170$ 5 51.09$ 8,856$ 106,267$
1 63.12$ 1 65.64$
2 66.44$ 2 69.09$
3 69.94$ 3 72.73$
4 73.62$ 4 76.56$
5 77.49$ 13,432$ 161,179$ 5 80.59$ 13,969$ 167,627$
1 67.55$ 1 70.25$
2 71.10$ 2 73.95$
3 74.84$ 3 77.84$
4 78.78$ 4 81.94$
5 82.93$ 14,375$ 172,494$ 5 86.25$ 14,950$ 179,400$
1 45.72$ 1 47.57$
2 48.13$ 2 50.07$
3 50.66$ 3 52.70$
4 53.33$ 4 55.47$
5 56.14$ 9,731$ 116,771$ 5 58.39$ 10,121$ 121,451$
1 46.60$ 1 48.47$
2 49.05$ 2 51.02$
3 51.63$ 3 53.70$
4 54.35$ 4 56.53$
5 57.21$ 9,916$ 118,997$ 5 59.50$ 10,313$ 123,760$
1 40.35$ 1 41.96$
2 42.47$ 2 44.17$
3 44.70$ 3 46.49$
4 47.05$ 4 48.94$
5 49.53$ 8,585$ 103,022$ 5 51.52$ 8,930$ 107,162$
1 43.58$ 1 45.32$
2 45.87$ 2 47.70$
3 48.28$ 3 50.21$
4 50.82$ 4 52.85$
5 53.49$ 9,272$ 111,259$ 5 55.63$ 9,643$ 115,710$
1 30.06$ 1 31.27$
2 31.64$ 2 32.92$
3 33.31$ 3 34.65$
4 35.06$ 4 36.47$
5 36.91$ 6,398$ 76,773$ 5 38.39$ 6,654$ 79,851$
Motor Equip Mech-L
Motor Equipment Mechanic I
Motor Equipment Mechanic II
Offset Equip Op
Meter Shop Lead
Metering Technician
Metering Technician – Lead
Mobile Service Tech
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
381
286
287
230
369
552
553
384
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 255
Packet Pg. 316 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 76.51$ 1 79.58$
2 80.54$ 2 83.77$
3 84.78$ 3 88.18$
4 89.24$ 4 92.82$
5 93.94$ 16,283$ 195,395$ 5 97.70$ 16,935$ 203,216$
1 40.49$ 1 42.10$
2 42.62$ 2 44.32$
3 44.86$ 3 46.65$
4 47.22$ 4 49.11$
5 49.70$ 8,615$ 103,376$ 5 51.69$ 8,960$ 107,515$
1 34.93$ 1 36.33$
2 36.77$ 2 38.24$
3 38.70$ 3 40.25$
4 40.74$ 4 42.37$
5 42.88$ 7,433$ 89,190$ 5 44.60$ 7,731$ 92,768$
1 37.18$ 1 38.67$
2 39.14$ 2 40.71$
3 41.20$ 3 42.85$
4 43.37$ 4 45.11$
5 45.65$ 7,913$ 94,952$ 5 47.48$ 8,230$ 98,758$
1 59.55$ 1 61.94$
2 62.68$ 2 65.20$
3 65.98$ 3 68.63$
4 69.45$ 4 72.24$
5 73.11$ 12,672$ 152,069$ 5 76.04$ 13,180$ 158,163$
1 37.99$ 1 39.51$
2 39.99$ 2 41.59$
3 42.09$ 3 43.78$
4 44.31$ 4 46.08$
5 46.64$ 8,084$ 97,011$ 5 48.51$ 8,408$ 100,901$
1 41.78$ 1 43.45$
2 43.98$ 2 45.74$
3 46.29$ 3 48.15$
4 48.73$ 4 50.68$
5 51.29$ 8,890$ 106,683$ 5 53.35$ 9,247$ 110,968$
1 41.78$ 1 43.45$
2 43.98$ 2 45.74$
3 46.29$ 3 48.15$
4 48.73$ 4 50.68$
5 51.29$ 8,890$ 106,683$ 5 53.35$ 9,247$ 110,968$
Parks/Golf Crew-Lead
Payroll Analyst
Payroll Analyst - S
Overhead Underground
Troubleman
Park Maint - Lead
Park Maint Person
Park Ranger
Parking Operations Lead
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
460
348
3480
543
452
451
281
570
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 256
Packet Pg. 317 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 49.61$ 1 51.59$
2 52.22$ 2 54.31$
3 54.97$ 3 57.17$
4 57.86$ 4 60.18$
5 60.91$ 10,558$ 126,693$ 5 63.35$ 10,981$ 131,768$
1 56.81$ 1 59.08$
2 59.80$ 2 62.19$
3 62.95$ 3 65.46$
4 66.26$ 4 68.91$
5 69.75$ 12,090$ 145,080$ 5 72.54$ 12,574$ 150,883$
1 56.81$ 1 59.08$
2 59.80$ 2 62.19$
3 62.95$ 3 65.46$
4 66.26$ 4 68.91$
5 69.75$ 12,090$ 145,080$ 5 72.54$ 12,574$ 150,883$
1 63.30$ 1 65.84$
2 66.63$ 2 69.30$
3 70.14$ 3 72.95$
4 73.83$ 4 76.79$
5 77.72$ 13,471$ 161,658$ 5 80.83$ 14,011$ 168,126$
1 49.29$ 1 51.26$
2 51.88$ 2 53.96$
3 54.61$ 3 56.80$
4 57.48$ 4 59.79$
5 60.51$ 10,488$ 125,861$ 5 62.94$ 10,910$ 130,915$
1 44.76$ 1 46.56$
2 47.12$ 2 49.01$
3 49.60$ 3 51.59$
4 52.21$ 4 54.30$
5 54.96$ 9,526$ 114,317$ 5 57.16$ 9,908$ 118,893$
1 36.40$ 1 37.86$
2 38.32$ 2 39.85$
3 40.34$ 3 41.95$
4 42.46$ 4 44.16$
5 44.69$ 7,746$ 92,955$ 5 46.48$ 8,057$ 96,678$
1 32.34$ 1 33.64$
2 34.04$ 2 35.41$
3 35.83$ 3 37.27$
4 37.72$ 4 39.23$
5 39.70$ 6,881$ 82,576$ 5 41.29$ 7,157$ 85,883$
Police Records Specialist - Lead
Police Records Specialist I
Planner
Planning Arborist
Planning Arborist - S
Plans Check Engr
Plans Examiner
Plant Mechanic
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
321
313
352
347
3470
304
513
517
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 257
Packet Pg. 318 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 34.03$ 1 35.40$
2 35.82$ 2 37.26$
3 37.70$ 3 39.22$
4 39.68$ 4 41.28$
5 41.77$ 7,240$ 86,882$ 5 43.45$ 7,531$ 90,376$
1 69.59$ 1 72.38$
2 73.25$ 2 76.19$
3 77.11$ 3 80.20$
4 81.17$ 4 84.42$
5 85.44$ 14,810$ 177,715$ 5 88.86$ 15,402$ 184,829$
1 42.85$ 1 44.56$
2 45.11$ 2 46.91$
3 47.48$ 3 49.38$
4 49.98$ 4 51.98$
5 52.61$ 9,119$ 109,429$ 5 54.72$ 9,485$ 113,818$
1 53.69$ 1 55.84$
2 56.52$ 2 58.78$
3 59.49$ 3 61.87$
4 62.62$ 4 65.13$
5 65.92$ 11,426$ 137,114$ 5 68.56$ 11,884$ 142,605$
1 32.40$ 1 33.70$
2 34.10$ 2 35.47$
3 35.89$ 3 37.34$
4 37.78$ 4 39.30$
5 39.77$ 6,893$ 82,722$ 5 41.37$ 7,171$ 86,050$
1 34.34$ 1 35.72$
2 36.15$ 2 37.60$
3 38.05$ 3 39.58$
4 40.05$ 4 41.66$
5 42.16$ 7,308$ 87,693$ 5 43.85$ 7,601$ 91,208$
1 36.91$ 1 38.38$
2 38.85$ 2 40.40$
3 40.89$ 3 42.53$
4 43.04$ 4 44.77$
5 45.31$ 7,854$ 94,245$ 5 47.13$ 8,169$ 98,030$
1 36.98$ 1 38.48$
2 38.93$ 2 40.50$
3 40.98$ 3 42.63$
4 43.14$ 4 44.87$
5 45.41$ 7,871$ 94,453$ 5 47.23$ 8,187$ 98,238$
Program Coordinator
Police Records Specialist II
Power Engr
Prod Arts/Sci Prog
Prog-Analyst
Program Assistant
Program Assistant I
Program Assistant II
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
368
314
246
270
232
265
302
303
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 258
Packet Pg. 319 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 70.13$ 1 72.95$
2 73.82$ 2 76.79$
3 77.71$ 3 80.83$
4 81.80$ 4 85.08$
5 86.11$ 14,926$ 179,109$ 5 89.56$ 15,524$ 186,285$
1 70.13$ 1 72.95$
2 73.82$ 2 76.79$
3 77.71$ 3 80.83$
4 81.80$ 4 85.08$
5 86.11$ 14,926$ 179,109$ 5 89.56$ 15,524$ 186,285$
1 35.19$ 1 36.59$
2 37.04$ 2 38.52$
3 38.99$ 3 40.55$
4 41.04$ 4 42.68$
5 43.20$ 7,488$ 89,856$ 5 44.93$ 7,788$ 93,454$
1 63.74$ 1 66.28$
2 67.09$ 2 69.77$
3 70.62$ 3 73.44$
4 74.34$ 4 77.31$
5 78.25$ 13,563$ 162,760$ 5 81.38$ 14,106$ 169,270$
1 50.26$ 1 52.27$
2 52.91$ 2 55.02$
3 55.69$ 3 57.92$
4 58.62$ 4 60.97$
5 61.71$ 10,696$ 128,357$ 5 64.18$ 11,125$ 133,494$
1 65.26$ 1 67.86$
2 68.69$ 2 71.43$
3 72.30$ 3 75.19$
4 76.10$ 4 79.15$
5 80.11$ 13,886$ 166,629$ 5 83.32$ 14,442$ 173,306$
1 47.39$ 1 49.29$
2 49.88$ 2 51.88$
3 52.50$ 3 54.61$
4 55.26$ 4 57.48$
5 58.17$ 10,083$ 120,994$ 5 60.50$ 10,487$ 125,840$
1 35.51$ 1 36.94$
2 37.38$ 2 38.88$
3 39.35$ 3 40.93$
4 41.42$ 4 43.08$
5 43.60$ 7,557$ 90,688$ 5 45.35$ 7,861$ 94,328$
Project Engineer
Project Engineer - S
Property Evid Tech
Resource Planner
Restoration Lead
SCADA Technologist
Senior Fleet Services Coordinator
Sprinkler Sys Repr
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
349
3490
209
262
366
554
385
461
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 259
Packet Pg. 320 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 49.29$ 1 51.26$
2 51.88$ 2 53.96$
3 54.61$ 3 56.80$
4 57.48$ 4 59.79$
5 60.51$ 10,488$ 125,861$ 5 62.94$ 10,910$ 130,915$
1 49.29$ 1 51.26$
2 51.88$ 2 53.96$
3 54.61$ 3 56.80$
4 57.48$ 4 59.79$
5 60.51$ 10,488$ 125,861$ 5 62.94$ 10,910$ 130,915$
1 53.38$ 1 55.52$
2 56.19$ 2 58.44$
3 59.15$ 3 61.52$
4 62.26$ 4 64.76$
5 65.54$ 11,360$ 136,323$ 5 68.17$ 11,816$ 141,794$
1 57.71$ 1 60.03$
2 60.75$ 2 63.19$
3 63.95$ 3 66.52$
4 67.32$ 4 70.02$
5 70.86$ 12,282$ 147,389$ 5 73.70$ 12,775$ 153,296$
1 52.84$ 1 54.97$
2 55.62$ 2 57.86$
3 58.55$ 3 60.90$
4 61.63$ 4 64.10$
5 64.87$ 11,244$ 134,930$ 5 67.47$ 11,695$ 140,338$
1 42.51$ 1 44.21$
2 44.75$ 2 46.54$
3 47.10$ 3 48.99$
4 49.58$ 4 51.57$
5 52.19$ 9,046$ 108,555$ 5 54.28$ 9,409$ 112,902$
1 49.12$ 1 51.07$
2 51.70$ 2 53.76$
3 54.42$ 3 56.59$
4 57.28$ 4 59.57$
5 60.29$ 10,450$ 125,403$ 5 62.71$ 10,870$ 130,437$
1 58.49$ 1 60.84$
2 61.57$ 2 64.04$
3 64.81$ 3 67.41$
4 68.22$ 4 70.96$
5 71.81$ 12,447$ 149,365$ 5 74.69$ 12,946$ 155,355$
Sr Buyer
Sr Buyer - S
Sr Chemist
Sr Industrial Waste Investigator
Sr Instrum Elect
Sr Librarian
Sr. Mech
Sr Mkt Analyst
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
360
3600
224
544
512
251
504
361
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 260
Packet Pg. 321 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 58.49$ 1 60.84$
2 61.57$ 2 64.04$
3 64.81$ 3 67.41$
4 68.22$ 4 70.96$
5 71.81$ 12,447$ 149,365$ 5 74.69$ 12,946$ 155,355$
1 51.07$ 1 53.11$
2 53.76$ 2 55.91$
3 56.59$ 3 58.85$
4 59.57$ 4 61.95$
5 62.70$ 10,868$ 130,416$ 5 65.21$ 11,303$ 135,637$
1 57.30$ 1 59.59$
2 60.32$ 2 62.73$
3 63.49$ 3 66.03$
4 66.83$ 4 69.51$
5 70.35$ 12,194$ 146,328$ 5 73.17$ 12,683$ 152,194$
1 41.14$ 1 42.78$
2 43.30$ 2 45.03$
3 45.58$ 3 47.40$
4 47.98$ 4 49.89$
5 50.50$ 8,753$ 105,040$ 5 52.52$ 9,103$ 109,242$
1 51.59$ 1 53.68$
2 54.31$ 2 56.50$
3 57.17$ 3 59.47$
4 60.18$ 4 62.60$
5 63.35$ 10,981$ 131,768$ 5 65.89$ 11,421$ 137,051$
1 48.68$ 1 50.64$
2 51.24$ 2 53.30$
3 53.94$ 3 56.11$
4 56.78$ 4 59.06$
5 59.77$ 10,360$ 124,322$ 5 62.17$ 10,776$ 129,314$
1 32.42$ 1 33.73$
2 34.13$ 2 35.50$
3 35.93$ 3 37.37$
4 37.82$ 4 39.34$
5 39.81$ 6,900$ 82,805$ 5 41.41$ 7,178$ 86,133$
1 39.47$ 1 41.06$
2 41.55$ 2 43.22$
3 43.74$ 3 45.49$
4 46.04$ 4 47.88$
5 48.46$ 8,400$ 100,797$ 5 50.40$ 8,736$ 104,832$
Sr Operator Wqc
Sr Planner
Sr Ranger
Sr Util Field Svc Rep
Sr Water Sys Oper
St Maint Asst
St Sweeper Op
Sr Mkt Analyst - S
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
506
318
280
261
501
405
392
3610
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 261
Packet Pg. 322 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 36.24$ 1 37.69$
2 38.15$ 2 39.67$
3 40.16$ 3 41.76$
4 42.27$ 4 43.96$
5 44.49$ 7,712$ 92,539$ 5 46.27$ 8,020$ 96,242$
1 38.80$ 1 40.35$
2 40.84$ 2 42.47$
3 42.99$ 3 44.71$
4 45.25$ 4 47.06$
5 47.63$ 8,256$ 99,070$ 5 49.54$ 8,587$ 103,043$
1 57.13$ 1 59.42$
2 60.14$ 2 62.55$
3 63.30$ 3 65.84$
4 66.63$ 4 69.30$
5 70.14$ 12,158$ 145,891$ 5 72.95$ 12,645$ 151,736$
1 64.60$ 1 67.20$
2 68.00$ 2 70.74$
3 71.58$ 3 74.46$
4 75.35$ 4 78.38$
5 79.32$ 13,749$ 164,986$ 5 82.50$ 14,300$ 171,600$
1 60.36$ 1 62.78$
2 63.54$ 2 66.08$
3 66.88$ 3 69.56$
4 70.40$ 4 73.22$
5 74.10$ 12,844$ 154,128$ 5 77.07$ 13,359$ 160,306$
1 65.86$ 1 68.50$
2 69.33$ 2 72.11$
3 72.98$ 3 75.91$
4 76.82$ 4 79.90$
5 80.86$ 14,016$ 168,189$ 5 84.10$ 14,577$ 174,928$
1 62.34$ 1 64.85$
2 65.62$ 2 68.26$
3 69.07$ 3 71.85$
4 72.71$ 4 75.63$
5 76.54$ 13,267$ 159,203$ 5 79.61$ 13,799$ 165,589$
1 70.47$ 1 73.30$
2 74.18$ 2 77.16$
3 78.08$ 3 81.22$
4 82.19$ 4 85.49$
5 86.52$ 14,997$ 179,962$ 5 89.99$ 15,598$ 187,179$
Street Light, Traffic Signal and Fiber
– Apprentice
Street Light, Traffic Signal and Fiber
– Lead
Street Light, Traffic Signal and Fiber
Technician
Substation Electrician
Substation Electrician - Apprentice
Substation Electrician - Lead
Storekeeper
Storekeeper-L
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
545
547
546
549
548
550
248
288
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 262
Packet Pg. 323 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 43.64$ 1 45.39$
2 45.94$ 2 47.78$
3 48.36$ 3 50.29$
4 50.90$ 4 52.94$
5 53.58$ 9,287$ 111,446$ 5 55.73$ 9,660$ 115,918$
1 47.47$ 1 49.37$
2 49.97$ 2 51.97$
3 52.60$ 3 54.71$
4 55.37$ 4 57.59$
5 58.28$ 10,102$ 121,222$ 5 60.62$ 10,507$ 126,090$
1 66.45$ 1 69.12$
2 69.95$ 2 72.76$
3 73.63$ 3 76.59$
4 77.51$ 4 80.62$
5 81.59$ 14,142$ 169,707$ 5 84.86$ 14,709$ 176,509$
1 66.45$ 1 69.12$
2 69.95$ 2 72.76$
3 73.63$ 3 76.59$
4 77.51$ 4 80.62$
5 81.59$ 14,142$ 169,707$ 5 84.86$ 14,709$ 176,509$
1 45.82$ 1 47.65$
2 48.23$ 2 50.16$
3 50.77$ 3 52.80$
4 53.44$ 4 55.58$
5 56.25$ 9,750$ 117,000$ 5 58.50$ 10,140$ 121,680$
1 37.95$ 1 39.47$
2 39.95$ 2 41.55$
3 42.05$ 3 43.74$
4 44.26$ 4 46.04$
5 46.59$ 8,076$ 96,907$ 5 48.46$ 8,400$ 100,797$
1 35.13$ 1 36.56$
2 36.98$ 2 38.48$
3 38.93$ 3 40.50$
4 40.98$ 4 42.63$
5 43.14$ 7,478$ 89,731$ 5 44.87$ 7,777$ 93,330$
1 40.61$ 1 42.25$
2 42.75$ 2 44.47$
3 45.00$ 3 46.81$
4 47.37$ 4 49.27$
5 49.86$ 8,642$ 103,709$ 5 51.86$ 8,989$ 107,869$
Technologist - S
Theater Specialist
Traf Cont Maint I
Traf Cont Maint Ii
Traf Cont Maint-L
Surveying Asst
Surveyor, Public Wks
Technologist
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
3620
229
406
412
407
326
325
362
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 263
Packet Pg. 324 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 73.81$ 1 76.76$
2 77.69$ 2 80.80$
3 81.78$ 3 85.05$
4 86.08$ 4 89.53$
5 90.61$ 15,706$ 188,469$ 5 94.24$ 16,335$ 196,019$
1 33.92$ 1 35.28$
2 35.71$ 2 37.14$
3 37.59$ 3 39.09$
4 39.57$ 4 41.15$
5 41.65$ 7,219$ 86,632$ 5 43.32$ 7,509$ 90,106$
1 39.58$ 1 41.16$
2 41.66$ 2 43.33$
3 43.85$ 3 45.61$
4 46.16$ 4 48.01$
5 48.59$ 8,422$ 101,067$ 5 50.54$ 8,760$ 105,123$
1 38.96$ 1 40.53$
2 41.01$ 2 42.66$
3 43.17$ 3 44.90$
4 45.44$ 4 47.26$
5 47.83$ 8,291$ 99,486$ 5 49.75$ 8,623$ 103,480$
1 41.67$ 1 43.34$
2 43.86$ 2 45.62$
3 46.17$ 3 48.02$
4 48.60$ 4 50.55$
5 51.16$ 8,868$ 106,413$ 5 53.21$ 9,223$ 110,677$
1 36.74$ 1 38.20$
2 38.67$ 2 40.21$
3 40.70$ 3 42.33$
4 42.84$ 4 44.56$
5 45.09$ 7,816$ 93,787$ 5 46.90$ 8,129$ 97,552$
1 37.86$ 1 39.37$
2 39.85$ 2 41.44$
3 41.95$ 3 43.62$
4 44.16$ 4 45.92$
5 46.48$ 8,057$ 96,678$ 5 48.34$ 8,379$ 100,547$
1 72.85$ 1 75.76$
2 76.68$ 2 79.75$
3 80.72$ 3 83.95$
4 84.97$ 4 88.37$
5 89.44$ 15,503$ 186,035$ 5 93.02$ 16,123$ 193,482$
Tree Trim/Ln Clr-L
Tree Trm/Ln Clr Asst
Util Acctg Tech
Util Comp Tech
Traffic Engineering Lead
Tree Maint Asst
Tree Maintenance Specialist
Tree Trim/Ln Clr
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
431
432
223
272
575
435
434
430
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 264
Packet Pg. 325 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 77.95$ 1 81.06$
2 82.05$ 2 85.33$
3 86.37$ 3 89.82$
4 90.92$ 4 94.55$
5 95.70$ 16,588$ 199,056$ 5 99.53$ 17,252$ 207,022$
1 45.08$ 1 46.89$
2 47.45$ 2 49.36$
3 49.95$ 3 51.96$
4 52.58$ 4 54.69$
5 55.35$ 9,594$ 115,128$ 5 57.57$ 9,979$ 119,746$
1 61.28$ 1 63.74$
2 64.51$ 2 67.09$
3 67.91$ 3 70.62$
4 71.48$ 4 74.34$
5 75.24$ 13,042$ 156,499$ 5 78.25$ 13,563$ 162,760$
1 48.27$ 1 50.19$
2 50.81$ 2 52.83$
3 53.48$ 3 55.61$
4 56.29$ 4 58.54$
5 59.25$ 10,270$ 123,240$ 5 61.62$ 10,681$ 128,170$
1 47.05$ 1 48.95$
2 49.53$ 2 51.53$
3 52.14$ 3 54.24$
4 54.88$ 4 57.09$
5 57.77$ 10,013$ 120,162$ 5 60.09$ 10,416$ 124,987$
1 39.91$ 1 41.51$
2 42.01$ 2 43.69$
3 44.22$ 3 45.99$
4 46.55$ 4 48.41$
5 49.00$ 8,493$ 101,920$ 5 50.96$ 8,833$ 105,997$
1 51.35$ 1 53.40$
2 54.05$ 2 56.21$
3 56.89$ 3 59.17$
4 59.88$ 4 62.28$
5 63.03$ 10,925$ 131,102$ 5 65.56$ 11,364$ 136,365$
1 50.86$ 1 52.91$
2 53.54$ 2 55.69$
3 56.36$ 3 58.62$
4 59.33$ 4 61.70$
5 62.45$ 10,825$ 129,896$ 5 64.95$ 11,258$ 135,096$
Util Comp Tech-L
Util Credit/Col Spec
Util Engr Estimator
Util Fld Svcs Rep
Util Install/Rep
Util Install/Rep Ast
Util Install/Rep-L
Util Key Acct Rep
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt310
481
479
363
273
219
486
480
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 265
Packet Pg. 326 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 50.86$ 1 52.91$
2 53.54$ 2 55.69$
3 56.36$ 3 58.62$
4 59.33$ 4 61.70$
5 62.45$ 10,825$ 129,896$ 5 64.95$ 11,258$ 135,096$
1 46.51$ 1 48.37$
2 48.96$ 2 50.92$
3 51.54$ 3 53.60$
4 54.25$ 4 56.42$
5 57.10$ 9,897$ 118,768$ 5 59.39$ 10,294$ 123,531$
1 49.15$ 1 51.13$
2 51.74$ 2 53.82$
3 54.46$ 3 56.65$
4 57.33$ 4 59.63$
5 60.35$ 10,461$ 125,528$ 5 62.77$ 10,880$ 130,562$
1 49.69$ 1 51.68$
2 52.30$ 2 54.40$
3 55.05$ 3 57.26$
4 57.95$ 4 60.27$
5 61.00$ 10,573$ 126,880$ 5 63.44$ 10,996$ 131,955$
1 81.56$ 1 84.83$
2 85.85$ 2 89.29$
3 90.37$ 3 93.99$
4 95.13$ 4 98.94$
5 100.14$ 17,358$ 208,291$ 5 104.15$ 18,053$ 216,632$
1 77.49$ 1 80.60$
2 81.57$ 2 84.84$
3 85.86$ 3 89.30$
4 90.38$ 4 94.00$
5 95.14$ 16,491$ 197,891$ 5 98.95$ 17,151$ 205,816$
1 65.57$ 1 68.17$
2 69.02$ 2 71.76$
3 72.65$ 3 75.54$
4 76.47$ 4 79.52$
5 80.49$ 13,952$ 167,419$ 5 83.71$ 14,510$ 174,117$
1 52.54$ 1 54.65$
2 55.31$ 2 57.53$
3 58.22$ 3 60.56$
4 61.28$ 4 63.75$
5 64.51$ 11,182$ 134,181$ 5 67.10$ 11,631$ 139,568$
Util Syst Oper
Util Syst Oper in Training
Utilities Engineer Estimator Lead
Utl Install Repair Lead-Welding Cert
Util Key Acct Rep -S
Util Locator
Sustainability Programs
Administrator
Util Rate Analyst
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
284
290
3630
271
215
233
307
322
Non‐Exempt
Non‐Exempt
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 266
Packet Pg. 327 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 48.92$ 1 50.87$
2 51.49$ 2 53.55$
3 54.20$ 3 56.37$
4 57.05$ 4 59.34$
5 60.05$ 10,409$ 124,904$ 5 62.46$ 10,826$ 129,917$
1 38.90$ 1 40.47$
2 40.95$ 2 42.60$
3 43.10$ 3 44.84$
4 45.37$ 4 47.20$
5 47.76$ 8,278$ 99,341$ 5 49.68$ 8,611$ 103,334$
1 32.88$ 1 34.21$
2 34.61$ 2 36.01$
3 36.43$ 3 37.90$
4 38.35$ 4 39.89$
5 40.37$ 6,997$ 83,970$ 5 41.99$ 7,278$ 87,339$
1 36.41$ 1 37.88$
2 38.33$ 2 39.87$
3 40.35$ 3 41.97$
4 42.47$ 4 44.18$
5 44.71$ 7,750$ 92,997$ 5 46.50$ 8,060$ 96,720$
1 37.57$ 1 39.08$
2 39.55$ 2 41.14$
3 41.63$ 3 43.30$
4 43.82$ 4 45.58$
5 46.13$ 7,996$ 95,950$ 5 47.98$ 8,317$ 99,798$
1 42.92$ 1 44.64$
2 45.18$ 2 46.99$
3 47.56$ 3 49.46$
4 50.06$ 4 52.06$
5 52.69$ 9,133$ 109,595$ 5 54.80$ 9,499$ 113,984$
1 39.42$ 1 40.99$
2 41.49$ 2 43.15$
3 43.67$ 3 45.42$
4 45.97$ 4 47.81$
5 48.39$ 8,388$ 100,651$ 5 50.33$ 8,724$ 104,686$
1 45.03$ 1 46.84$
2 47.40$ 2 49.31$
3 49.89$ 3 51.90$
4 52.52$ 4 54.63$
5 55.28$ 9,582$ 114,982$ 5 57.50$ 9,967$ 119,600$
Utl Install Repair-Welding Cert
Volunteer Coord
Water Meter Rep Asst
Water Meter Repair
Water Sys Oper I
Water Sys Oper II
WQC Plt Oper I
WQC Plt Oper II
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
289
274
482
484
499
507
500
509 Non‐Exempt
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 267
Packet Pg. 328 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 34.72$ 1 36.10$
2 36.55$ 2 38.00$
3 38.47$ 3 40.00$
4 40.49$ 4 42.11$
5 42.62$ 7,387$ 88,650$ 5 44.33$ 7,684$ 92,206$
1 37.36$ 1 38.86$
2 39.33$ 2 40.90$
3 41.40$ 3 43.05$
4 43.58$ 4 45.32$
5 45.87$ 7,951$ 95,410$ 5 47.71$ 8,270$ 99,237$
1 53.84$ 1 55.99$
2 56.67$ 2 58.94$
3 59.65$ 3 62.04$
4 62.79$ 4 65.30$
5 66.09$ 11,456$ 137,467$ 5 68.74$ 11,915$ 142,979$
6 67.75$ 6 70.46$
7 69.40$ 7 72.23$
1 45.55$ 1 47.39$
2 47.95$ 2 49.88$
3 50.47$ 3 52.50$
4 53.13$ 4 55.26$
5 55.93$ 9,695$ 116,334$ 5 58.17$ 10,083$ 120,994$
6 57.33$ 6 59.63$
7 58.73$ 7 61.13$
1 47.98$ 1 49.90$
2 50.50$ 2 52.53$
3 53.16$ 3 55.29$
4 55.96$ 4 58.20$
5 58.90$ 10,209$ 122,512$ 5 61.26$ 10,618$ 127,421$
6 60.38$ 6 62.80$
7 61.85$ 7 64.37$
1 52.09$ 1 54.18$
2 54.83$ 2 57.03$
3 57.72$ 3 60.03$
4 60.76$ 4 63.19$
5 63.96$ 11,086$ 133,037$ 5 66.52$ 11,530$ 138,362$
Longevity Steps
Longevity Steps
Longevity Steps
Longevity Steps
Longevity Steps
Longevity Steps
WQC Plt Oper Trn
Public Safety Dispatcher - Lead
Public Safety Dispatcher I
Public Safety Dispatcher II
576 Non‐Exempt Inspector, WGW Utilities Field
226
315
298
316
510
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Non‐Exempt
Wtr Mtr Crs Cn Tec
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 268
Packet Pg. 329 of 473
Job Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual
Service Employees International Union (SEIU) Salary Schedule
Effective 01/28/2023 (MKT + 4%) Effective 2024 01/13/2024 (4%)
1 37.84$ 1 39.36$
2 39.83$ 2 41.43$
3 41.93$ 3 43.61$
4 44.14$ 4 45.90$
5 46.46$ 8,053$ 96,637$ 5 48.32$ 8,375$ 100,506$
1 41.93$ 1 43.60$
2 44.14$ 2 45.89$
3 46.46$ 3 48.31$
4 48.90$ 4 50.85$
5 51.47$ 8,921$ 107,058$ 5 53.53$ 9,279$ 111,342$
578 Non‐Exempt Airport Specialist I
579 Non‐Exempt Airport Specialist II
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment C-SEIU Salary Schedule 2023 - 2024
Item 5: Staff Report Pg. 269
Packet Pg. 330 of 473
Job
Code FLSA SH/NS Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual
1 40.66$ 1 42.19$ 1 42.60$ 1 44.21$ 1 45.11$
2 42.78$ 2 44.41$ 2 44.82$ 2 46.54$ 2 47.48$
3 45.01$ 3 46.75$ 3 47.16$ 3 48.99$ 3 49.98$
4 47.36$ 4 49.21$ 4 49.62$ 4 51.57$ 4 52.61$
5 49.83$ 5 51.80$ 5 52.21$ 5 54.28$ 5 55.38$
6 52.43$ 12,724$ 152,682$ 6 54.53$ 13,233$ 158,791$ 6 54.94$ 13,333$ 159,991$ 6 57.14$ 13,866$ 166,392$ 6 58.29$ 14,145$ 169,740$
1 48.62$ 1 50.48$ 1 50.89$ 1 52.84$ 1 53.89$
2 51.16$ 2 53.14$ 2 53.55$ 2 55.62$ 2 56.73$
3 53.83$ 3 55.94$ 3 56.35$ 3 58.55$ 3 59.72$
4 56.64$ 4 58.88$ 4 59.29$ 4 61.63$ 4 62.86$
5 59.60$ 5 61.98$ 5 62.39$ 5 64.87$ 5 66.17$
6 62.72$ 15,221$ 182,647$ 6 65.24$ 15,832$ 189,979$ 6 65.65$ 15,932$ 191,179$ 6 68.28$ 16,569$ 198,831$ 6 69.65$ 16,902$ 202,821$
1 51.05$ 1 53.00$ 1 53.41$ 1 55.46$ 1 56.57$
2 53.71$ 2 55.79$ 2 56.20$ 2 58.38$ 2 59.55$
3 56.52$ 3 58.73$ 3 59.14$ 3 61.45$ 3 62.68$
4 59.47$ 4 61.82$ 4 62.23$ 4 64.68$ 4 65.98$
5 62.58$ 5 65.07$ 5 65.48$ 5 68.08$ 5 69.45$
6 65.85$ 15,980$ 191,761$ 6 68.49$ 16,620$ 199,443$ 6 68.90$ 16,720$ 200,643$ 6 71.66$ 17,389$ 208,674$ 6 73.10$ 17,739$ 212,867$
1 38.05$ 1 39.49$ 1 39.90$ 1 41.41$ 1 42.23$
2 40.03$ 2 41.57$ 2 41.98$ 2 43.59$ 2 44.45$
3 42.12$ 3 43.76$ 3 44.17$ 3 45.88$ 3 46.79$
4 44.32$ 4 46.06$ 4 46.47$ 4 48.29$ 4 49.25$
5 46.63$ 5 48.48$ 5 48.89$ 5 50.83$ 5 51.84$
6 49.06$ 11,906$ 142,869$ 6 51.03$ 12,383$ 148,599$ 6 51.44$ 12,483$ 149,799$ 6 53.50$ 12,983$ 155,792$ 6 54.57$ 13,242$ 158,908$
1 46.36$ 1 48.13$ 1 48.54$ 1 50.39$ 1 51.40$
2 48.78$ 2 50.66$ 2 51.07$ 2 53.04$ 2 54.10$
3 51.33$ 3 53.33$ 3 53.74$ 3 55.83$ 3 56.95$
4 54.01$ 4 56.14$ 4 56.55$ 4 58.77$ 4 59.95$
5 56.83$ 5 59.09$ 5 59.50$ 5 61.86$ 5 63.11$
6 59.80$ 14,512$ 174,144$ 6 62.20$ 15,094$ 181,126$ 6 62.61$ 15,194$ 182,326$ 6 65.12$ 15,802$ 189,629$ 6 66.43$ 16,120$ 193,444$
1 55.49$ 1 57.62$ 1 58.03$ 1 60.26$ 1 61.47$
2 58.39$ 2 60.65$ 2 61.06$ 2 63.43$ 2 64.70$
3 61.44$ 3 63.84$ 3 64.25$ 3 66.77$ 3 68.11$
4 64.65$ 4 67.20$ 4 67.61$ 4 70.28$ 4 71.69$
5 68.03$ 5 70.74$ 5 71.15$ 5 73.98$ 5 75.46$
6 71.59$ 17,373$ 208,476$ 6 74.46$ 18,069$ 216,828$ 6 74.87$ 18,169$ 218,028$ 6 77.87$ 18,896$ 226,757$ 6 79.43$ 19,275$ 231,300$
1 55.97$ 1 58.11$ 1 58.52$ 1 60.78$ 1 62.00$
2 58.89$ 2 61.17$ 2 61.58$ 2 63.98$ 2 65.26$
3 61.97$ 3 64.39$ 3 64.80$ 3 67.35$ 3 68.69$
4 65.21$ 4 67.78$ 4 68.19$ 4 70.89$ 4 72.31$
5 68.62$ 5 71.35$ 5 71.76$ 5 74.62$ 5 76.12$
6 72.21$ 17,523$ 210,282$ 6 75.11$ 18,227$ 218,720$ 6 75.52$ 18,327$ 219,920$ 6 78.55$ 19,061$ 228,738$ 6 80.13$ 19,445$ 233,339$
1 43.39$ 1 45.04$ 1 45.45$ 1 47.18$ 1 48.12$
2 45.65$ 2 47.41$ 2 47.82$ 2 49.66$ 2 50.65$
3 48.03$ 3 49.91$ 3 50.32$ 3 52.27$ 3 53.32$
4 50.54$ 4 52.54$ 4 52.95$ 4 55.02$ 4 56.13$
5 53.18$ 5 55.30$ 5 55.71$ 5 57.92$ 5 59.08$
6 55.96$ 13,580$ 162,962$ 6 58.21$ 14,126$ 169,508$ 6 58.62$ 14,226$ 170,708$ 6 60.97$ 14,795$ 177,545$ 6 62.19$ 15,091$ 181,097$
International Fire Fighters Association
Salary Schedule
Effective 01/11/2025
(2% Increase)
Effective 07/12/2024
(4% Increase)
601
602
603
604
Effective 01/13/2024
(Med Ben)
610 Non‐exempt SH INSPCTR PARAMDC‐12.5
676 Non‐exempt SH F FIGHTR PARAMEDC‐12.5
606 Non‐exempt SH OPER PARAMEDIC‐12.5
608 Non‐exempt SH CAPTAIN PARAMEDIC‐12.5
Non‐exempt SH FIRE INSPECTOR
Non‐exempt SH FIRE FIGHTER
Non‐exempt SH FIRE APPARATUS OP
Non‐exempt SH FIRE CAPTAIN
Effective 01/28/2023
(MKT 5% + 1‐1.5% CPT PARA+ Med Ben)
Effective 07/15/2023
(4% Increase)
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment D-IAFF Salary Schedule 2023 - 2025
Item 5: Staff Report Pg. 270
Packet Pg. 331 of 473
Job
Code FLSA SH/NS Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual
International Fire Fighters Association
Salary Schedule
Effective 01/11/2025
(2% Increase)
Effective 07/12/2024
(4% Increase)
Effective 01/13/2024
(Med Ben)
Effective 01/28/2023
(MKT 5% + 1‐1.5% CPT PARA+ Med Ben)
Effective 07/15/2023
(4% Increase)
1 52.51$ 1 54.53$ 1 54.94$ 1 57.04$ 1 58.20$
2 55.25$ 2 57.40$ 2 57.81$ 2 60.04$ 2 61.26$
3 58.14$ 3 60.42$ 3 60.83$ 3 63.20$ 3 64.48$
4 61.18$ 4 63.60$ 4 64.01$ 4 66.53$ 4 67.87$
5 64.38$ 5 66.95$ 5 67.36$ 5 70.03$ 5 71.44$
6 67.75$ 16,441$ 197,294$ 6 70.47$ 17,101$ 205,209$ 6 70.88$ 17,201$ 206,409$ 6 73.72$ 17,889$ 214,673$ 6 75.20$ 18,249$ 218,982$
1 51.05$ 1 53.00$ 1 53.41$ 1 55.46$ 1 56.57$
2 53.71$ 2 55.79$ 2 56.20$ 2 58.38$ 2 59.55$
3 56.52$ 3 58.73$ 3 59.14$ 3 61.45$ 3 62.68$
4 59.47$ 4 61.82$ 4 62.23$ 4 64.68$ 4 65.98$
5 62.58$ 5 65.07$ 5 65.48$ 5 68.08$ 5 69.45$
6 65.85$ 15,980$ 191,761$ 6 68.49$ 16,620$ 199,443$ 6 68.90$ 16,720$ 200,643$ 6 71.66$ 17,389$ 208,674$ 6 73.10$ 17,739$ 212,867$
1 39.93$ 1 41.43$ 1 41.84$ 1 43.42$ 1 44.32$
2 42.01$ 2 43.61$ 2 44.02$ 2 45.71$ 2 46.65$
3 44.20$ 3 45.91$ 3 46.32$ 3 48.12$ 3 49.10$
4 46.50$ 4 48.33$ 4 48.74$ 4 50.65$ 4 51.68$
5 48.93$ 5 50.87$ 5 51.28$ 5 53.32$ 5 54.40$
6 51.48$ 12,493$ 149,916$ 6 53.55$ 12,995$ 155,938$ 6 53.96$ 13,095$ 157,138$ 6 56.13$ 13,621$ 163,451$ 6 57.26$ 13,895$ 166,741$
1 42.67$ 1 44.28$ 1 44.69$ 1 46.38$ 1 47.31$
2 44.89$ 2 46.61$ 2 47.02$ 2 48.82$ 2 49.80$
3 47.23$ 3 49.06$ 3 49.47$ 3 51.39$ 3 52.42$
4 49.69$ 4 51.64$ 4 52.05$ 4 54.09$ 4 55.18$
5 52.28$ 5 54.36$ 5 54.77$ 5 56.94$ 5 58.08$
6 55.01$ 13,350$ 160,195$ 6 57.22$ 13,885$ 166,625$ 6 57.63$ 13,985$ 167,825$ 6 59.94$ 14,545$ 174,545$ 6 61.14$ 14,837$ 178,040$
1 51.05$ 1 53.01$ 1 53.42$ 1 55.47$ 1 56.57$
2 53.72$ 2 55.80$ 2 56.21$ 2 58.39$ 2 59.55$
3 56.53$ 3 58.74$ 3 59.15$ 3 61.46$ 3 62.68$
4 59.48$ 4 61.83$ 4 62.24$ 4 64.69$ 4 65.98$
5 62.59$ 5 65.08$ 5 65.49$ 5 68.09$ 5 69.45$
6 65.86$ 15,983$ 191,790$ 6 68.50$ 16,623$ 199,472$ 6 68.91$ 16,723$ 200,672$ 6 71.67$ 17,392$ 208,703$ 6 73.11$ 17,741$ 212,896$
1 39.18$ 1 40.66$ 1 41.07$ 1 42.63$ 1 43.48$
2 41.22$ 2 42.80$ 2 43.21$ 2 44.87$ 2 45.77$
3 43.37$ 3 45.05$ 3 45.46$ 3 47.23$ 3 48.18$
4 45.63$ 4 47.42$ 4 47.83$ 4 49.72$ 4 50.72$
5 48.01$ 5 49.92$ 5 50.33$ 5 52.34$ 5 53.39$
6 50.52$ 12,260$ 147,120$ 6 52.55$ 12,752$ 153,026$ 6 52.96$ 12,852$ 154,226$ 6 55.09$ 13,369$ 160,422$ 6 56.20$ 13,638$ 163,654$
1 41.06$ 1 42.62$ 1 43.03$ 1 44.67$ 1 45.56$
2 43.20$ 2 44.86$ 2 45.27$ 2 47.02$ 2 47.96$
3 45.45$ 3 47.22$ 3 47.63$ 3 49.49$ 3 50.48$
4 47.82$ 4 49.71$ 4 50.12$ 4 52.09$ 4 53.14$
5 50.32$ 5 52.33$ 5 52.74$ 5 54.83$ 5 55.94$
6 52.95$ 12,850$ 154,196$ 6 55.08$ 13,366$ 160,393$ 6 55.49$ 13,466$ 161,593$ 6 57.72$ 14,007$ 168,081$ 6 58.88$ 14,288$ 171,459$
1 41.87$ 1 43.46$ 1 43.87$ 1 45.53$ 1 46.46$
2 44.05$ 2 45.75$ 2 46.16$ 2 47.93$ 2 48.90$
3 46.35$ 3 48.16$ 3 48.57$ 3 50.45$ 3 51.47$
4 48.77$ 4 50.69$ 4 51.10$ 4 53.11$ 4 54.18$
5 51.32$ 5 53.36$ 5 53.77$ 5 55.91$ 5 57.03$
6 54.00$ 13,105$ 157,254$ 6 56.17$ 13,631$ 163,567$ 6 56.58$ 13,731$ 164,767$ 6 58.85$ 14,281$ 171,371$ 6 60.03$ 14,567$ 174,807$
684 Non‐exempt SH FIRE FGHTR HZ MT EMT
685 Non‐exempt SH FIRE APPARATUS OP EMT
682 Non‐exempt SH FIRE CAPTAIN HAZ MAT
683 Non‐exempt SH FIRE FIGHTER EMT
680 Non‐exempt SH FIRE FIGHTER HAZ MAT
681 Non‐exempt SH FIRE APPR OP HAZ MAT
678 Non‐exempt SH HAZ MAT INSPECTOR
677 Non‐exempt SH HAZ MAT SPEC
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment D-IAFF Salary Schedule 2023 - 2025
Item 5: Staff Report Pg. 271
Packet Pg. 332 of 473
Job
Code FLSA SH/NS Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual
International Fire Fighters Association
Salary Schedule
Effective 01/11/2025
(2% Increase)
Effective 07/12/2024
(4% Increase)
Effective 01/13/2024
(Med Ben)
Effective 01/28/2023
(MKT 5% + 1‐1.5% CPT PARA+ Med Ben)
Effective 07/15/2023
(4% Increase)
1 43.88$ 1 45.54$ 1 45.95$ 1 47.71$ 1 48.66$
2 46.17$ 2 47.94$ 2 48.35$ 2 50.22$ 2 51.22$
3 48.58$ 3 50.46$ 3 50.87$ 3 52.86$ 3 53.92$
4 51.11$ 4 53.12$ 4 53.53$ 4 55.64$ 4 56.76$
5 53.78$ 5 55.92$ 5 56.33$ 5 58.57$ 5 59.75$
6 56.59$ 13,733$ 164,796$ 6 58.86$ 14,283$ 171,400$ 6 59.27$ 14,383$ 172,600$ 6 61.65$ 14,960$ 179,525$ 6 62.89$ 15,261$ 183,136$
1 50.09$ 1 52.00$ 1 52.41$ 1 54.42$ 1 55.50$
2 52.70$ 2 54.74$ 2 55.15$ 2 57.28$ 2 58.42$
3 55.45$ 3 57.62$ 3 58.03$ 3 60.29$ 3 61.49$
4 58.35$ 4 60.65$ 4 61.06$ 4 63.46$ 4 64.73$
5 61.40$ 5 63.84$ 5 64.25$ 5 66.80$ 5 68.14$
6 64.61$ 15,679$ 188,150$ 6 67.20$ 16,307$ 195,686$ 6 67.61$ 16,407$ 196,886$ 6 70.32$ 17,064$ 204,772$ 6 71.73$ 17,406$ 208,878$
1 52.49$ 1 54.51$ 1 54.92$ 1 57.03$ 1 58.18$
2 55.23$ 2 57.38$ 2 57.79$ 2 60.03$ 2 61.24$
3 58.12$ 3 60.40$ 3 60.81$ 3 63.19$ 3 64.46$
4 61.16$ 4 63.58$ 4 63.99$ 4 66.52$ 4 67.85$
5 64.36$ 5 66.93$ 5 67.34$ 5 70.02$ 5 71.42$
6 67.73$ 16,436$ 197,236$ 6 70.45$ 17,096$ 205,150$ 6 70.86$ 17,196$ 206,350$ 6 73.70$ 17,885$ 214,614$ 6 75.18$ 18,244$ 218,924$
1 52.59$ 1 54.61$ 1 55.02$ 1 57.12$ 1 58.26$
2 55.34$ 2 57.48$ 2 57.89$ 2 60.13$ 2 61.33$
3 58.23$ 3 60.50$ 3 60.91$ 3 63.29$ 3 64.56$
4 61.27$ 4 63.68$ 4 64.09$ 4 66.62$ 4 67.96$
5 64.47$ 5 67.03$ 5 67.44$ 5 70.13$ 5 71.54$
6 67.84$ 16,463$ 197,556$ 6 70.56$ 17,123$ 205,471$ 6 70.97$ 17,223$ 206,671$ 6 73.82$ 17,914$ 214,964$ 6 75.30$ 18,273$ 219,274$
1 44.56$ 1 46.25$ 1 46.66$ 1 48.44$ 1 49.41$
2 46.88$ 2 48.68$ 2 49.09$ 2 50.99$ 2 52.01$
3 49.33$ 3 51.24$ 3 51.65$ 3 53.67$ 3 54.75$
4 51.90$ 4 53.94$ 4 54.35$ 4 56.49$ 4 57.63$
5 54.61$ 5 56.78$ 5 57.19$ 5 59.46$ 5 60.66$
6 57.46$ 13,944$ 167,330$ 6 59.77$ 14,504$ 174,050$ 6 60.18$ 14,604$ 175,250$ 6 62.59$ 15,189$ 182,262$ 6 63.85$ 15,494$ 185,931$
1 47.60$ 1 49.41$ 1 49.82$ 1 51.72$ 1 52.75$
2 50.08$ 2 52.01$ 2 52.42$ 2 54.44$ 2 55.53$
3 52.69$ 3 54.75$ 3 55.16$ 3 57.31$ 3 58.45$
4 55.44$ 4 57.63$ 4 58.04$ 4 60.33$ 4 61.53$
5 58.34$ 5 60.66$ 5 61.07$ 5 63.50$ 5 64.77$
6 61.39$ 14,898$ 178,774$ 6 63.85$ 15,494$ 185,931$ 6 64.26$ 15,594$ 187,131$ 6 66.84$ 16,220$ 194,638$ 6 68.18$ 16,545$ 198,540$
1 56.95$ 1 59.14$ 1 59.55$ 1 61.83$ 1 63.08$
2 59.93$ 2 62.25$ 2 62.66$ 2 65.08$ 2 66.40$
3 63.06$ 3 65.53$ 3 65.94$ 3 68.51$ 3 69.89$
4 66.36$ 4 68.98$ 4 69.39$ 4 72.12$ 4 73.57$
5 69.83$ 5 72.61$ 5 73.02$ 5 75.92$ 5 77.44$
6 73.48$ 17,832$ 213,980$ 6 76.43$ 18,547$ 222,564$ 6 76.84$ 18,647$ 223,764$ 6 79.92$ 19,394$ 232,727$ 6 81.52$ 19,782$ 237,386$
1 54.09$ 1 56.16$ 1 56.57$ 1 58.74$ 1 59.93$
2 56.92$ 2 59.12$ 2 59.53$ 2 61.83$ 2 63.08$
3 59.89$ 3 62.23$ 3 62.64$ 3 65.08$ 3 66.40$
4 63.02$ 4 65.50$ 4 65.91$ 4 68.51$ 4 69.89$
5 66.31$ 5 68.95$ 5 69.36$ 5 72.12$ 5 73.57$
6 69.78$ 16,934$ 203,205$ 6 72.58$ 17,613$ 211,353$ 6 72.99$ 17,713$ 212,553$ 6 75.92$ 18,423$ 221,079$ 6 77.44$ 18,792$ 225,505$
695 Non‐exempt SH CAPT PRMDC‐12.5 EMT
696 Non‐exempt SH HAZ MAT SPEC EMT
691 Non‐exempt SH F FGH PRDMD‐12.5 EMT
693 Non‐exempt SH OPR PRMDC‐12.5 EMT
688 Non‐exempt SH FIRE CAP HAZ MAT EMT
689 Non‐exempt SH FIRE INSPECTOR EMT
686 Non‐exempt SH FIRE AP OP HZ MT EMT
687 Non‐exempt SH FIRE CAPTAIN EMT
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment D-IAFF Salary Schedule 2023 - 2025
Item 5: Staff Report Pg. 272
Packet Pg. 333 of 473
Job
Code FLSA SH/NS Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual
International Fire Fighters Association
Salary Schedule
Effective 01/11/2025
(2% Increase)
Effective 07/12/2024
(4% Increase)
Effective 01/13/2024
(Med Ben)
Effective 01/28/2023
(MKT 5% + 1‐1.5% CPT PARA+ Med Ben)
Effective 07/15/2023
(4% Increase)
1 45.77$ 1 47.50$ 1 47.91$ 1 49.74$ 1 50.74$
2 48.16$ 2 50.00$ 2 50.41$ 2 52.36$ 2 53.41$
3 50.67$ 3 52.63$ 3 53.04$ 3 55.12$ 3 56.22$
4 53.31$ 4 55.40$ 4 55.81$ 4 58.02$ 4 59.18$
5 56.09$ 5 58.32$ 5 58.73$ 5 61.07$ 5 62.29$
6 59.02$ 14,323$ 171,872$ 6 61.39$ 14,897$ 178,768$ 6 61.80$ 14,997$ 179,968$ 6 64.28$ 15,599$ 187,183$ 6 65.57$ 15,912$ 190,940$
1 48.89$ 1 50.76$ 1 51.17$ 1 53.13$ 1 54.20$
2 51.44$ 2 53.43$ 2 53.84$ 2 55.93$ 2 57.05$
3 54.13$ 3 56.24$ 3 56.65$ 3 58.87$ 3 60.05$
4 56.96$ 4 59.20$ 4 59.61$ 4 61.97$ 4 63.21$
5 59.94$ 5 62.32$ 5 62.73$ 5 65.23$ 5 66.54$
6 63.07$ 15,305$ 183,666$ 6 65.60$ 15,919$ 191,027$ 6 66.01$ 16,019$ 192,227$ 6 68.66$ 16,661$ 199,938$ 6 70.04$ 16,996$ 203,956$
1 58.52$ 1 60.78$ 1 61.19$ 1 63.55$ 1 64.83$
2 61.58$ 2 63.98$ 2 64.39$ 2 66.89$ 2 68.24$
3 64.80$ 3 67.35$ 3 67.76$ 3 70.41$ 3 71.83$
4 68.19$ 4 70.89$ 4 71.30$ 4 74.12$ 4 75.61$
5 71.76$ 5 74.62$ 5 75.03$ 5 78.02$ 5 79.59$
6 75.52$ 18,327$ 219,920$ 6 78.55$ 19,061$ 228,738$ 6 78.96$ 19,161$ 229,938$ 6 82.13$ 19,930$ 239,163$ 6 83.78$ 20,331$ 243,967$
1 56.91$ 1 59.05$ 1 59.63$ 1 61.87$ 1 63.12$
2 59.87$ 2 62.16$ 2 62.74$ 2 65.13$ 2 66.44$
3 62.99$ 3 65.43$ 3 66.01$ 3 68.56$ 3 69.94$
4 66.27$ 4 68.87$ 4 69.45$ 4 72.17$ 4 73.62$
5 69.73$ 5 72.49$ 5 73.07$ 5 75.97$ 5 77.49$
6 73.37$ 12,717$ 152,603$ 6 76.31$ 13,227$ 158,725$ 6 76.89$ 13,327$ 159,925$ 6 79.97$ 13,861$ 166,338$ 6 81.57$ 14,139$ 169,666$
1 68.09$ 1 70.67$ 1 71.25$ 1 73.97$ 1 75.45$
2 71.64$ 2 74.39$ 2 74.97$ 2 77.86$ 2 79.42$
3 75.38$ 3 78.30$ 3 78.88$ 3 81.96$ 3 83.60$
4 79.32$ 4 82.42$ 4 83.00$ 4 86.27$ 4 88.00$
5 83.46$ 5 86.76$ 5 87.34$ 5 90.81$ 5 92.63$
6 87.82$ 15,222$ 182,659$ 6 91.33$ 15,831$ 189,966$ 6 91.91$ 15,931$ 191,166$ 6 95.59$ 16,569$ 198,827$ 6 97.51$ 16,902$ 202,821$
1 71.47$ 1 74.20$ 1 74.78$ 1 77.62$ 1 79.17$
2 75.20$ 2 78.10$ 2 78.68$ 2 81.71$ 2 83.34$
3 79.13$ 3 82.21$ 3 82.79$ 3 86.01$ 3 87.73$
4 83.26$ 4 86.54$ 4 87.12$ 4 90.54$ 4 92.35$
5 87.61$ 5 91.09$ 5 91.67$ 5 95.30$ 5 97.21$
6 92.19$ 15,979$ 191,749$ 6 95.88$ 16,619$ 199,430$ 6 96.46$ 16,719$ 200,630$ 6 100.32$ 17,389$ 208,666$ 6 102.33$ 17,737$ 212,846$
1 53.27$ 1 55.26$ 1 55.84$ 1 57.93$ 1 59.09$
2 56.04$ 2 58.17$ 2 58.75$ 2 60.98$ 2 62.20$
3 58.96$ 3 61.23$ 3 61.81$ 3 64.19$ 3 65.47$
4 62.03$ 4 64.45$ 4 65.03$ 4 67.57$ 4 68.92$
5 65.26$ 5 67.84$ 5 68.42$ 5 71.13$ 5 72.55$
6 68.66$ 11,901$ 142,806$ 6 71.41$ 12,378$ 148,533$ 6 71.99$ 12,478$ 149,733$ 6 74.87$ 12,977$ 155,730$ 6 76.37$ 13,237$ 158,850$
1 64.89$ 1 67.35$ 1 67.93$ 1 70.50$ 1 71.93$
2 68.27$ 2 70.89$ 2 71.47$ 2 74.21$ 2 75.72$
3 71.83$ 3 74.62$ 3 75.20$ 3 78.12$ 3 79.70$
4 75.58$ 4 78.55$ 4 79.13$ 4 82.23$ 4 83.89$
5 79.53$ 5 82.68$ 5 83.26$ 5 86.56$ 5 88.30$
6 83.68$ 14,504$ 174,048$ 6 87.03$ 15,085$ 181,022$ 6 87.61$ 15,185$ 182,222$ 6 91.12$ 15,794$ 189,530$ 6 92.95$ 16,111$ 193,336$
637 Non‐exempt NS FIRE FIGHTER
638 Non‐exempt NS OPER PARAMEDIC‐12.5
635 Non‐exempt NS FIRE CAPTAIN
636 Non‐exempt NS FIRE INSPECTOR
661 Non‐exempt SH FIRE CPT EMT HAZ MT PARA
634 Non‐exempt NS FIRE APPARATUS OP
671 Non‐exempt SH FIRE FGHTR EMT HAZ MT PARA
672 Non‐exempt SH FIRE AP OP EMT HAZ MT PARA
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment D-IAFF Salary Schedule 2023 - 2025
Item 5: Staff Report Pg. 273
Packet Pg. 334 of 473
Job
Code FLSA SH/NS Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual
International Fire Fighters Association
Salary Schedule
Effective 01/11/2025
(2% Increase)
Effective 07/12/2024
(4% Increase)
Effective 01/13/2024
(Med Ben)
Effective 01/28/2023
(MKT 5% + 1‐1.5% CPT PARA+ Med Ben)
Effective 07/15/2023
(4% Increase)
1 77.66$ 1 80.64$ 1 81.22$ 1 84.32$ 1 86.01$
2 81.72$ 2 84.88$ 2 85.46$ 2 88.76$ 2 90.54$
3 85.99$ 3 89.35$ 3 89.93$ 3 93.43$ 3 95.30$
4 90.49$ 4 94.05$ 4 94.63$ 4 98.35$ 4 100.32$
5 95.22$ 5 99.00$ 5 99.58$ 5 103.53$ 5 105.60$
6 100.20$ 17,367$ 208,410$ 6 104.21$ 18,063$ 216,757$ 6 104.79$ 18,163$ 217,957$ 6 108.98$ 18,890$ 226,678$ 6 111.16$ 19,268$ 231,213$
1 78.31$ 1 81.31$ 1 81.89$ 1 85.03$ 1 86.74$
2 82.40$ 2 85.59$ 2 86.17$ 2 89.50$ 2 91.30$
3 86.71$ 3 90.09$ 3 90.67$ 3 94.21$ 3 96.10$
4 91.24$ 4 94.83$ 4 95.41$ 4 99.17$ 4 101.16$
5 96.01$ 5 99.82$ 5 100.40$ 5 104.39$ 5 106.48$
6 101.03$ 17,511$ 210,136$ 6 105.07$ 18,212$ 218,546$ 6 105.65$ 18,312$ 219,746$ 6 109.88$ 19,046$ 228,550$ 6 112.08$ 19,427$ 233,126$
1 71.47$ 1 74.20$ 1 74.78$ 1 77.62$ 1 79.17$
2 75.20$ 2 78.10$ 2 78.68$ 2 81.71$ 2 83.34$
3 79.13$ 3 82.21$ 3 82.79$ 3 86.01$ 3 87.73$
4 83.26$ 4 86.54$ 4 87.12$ 4 90.54$ 4 92.35$
5 87.61$ 5 91.09$ 5 91.67$ 5 95.30$ 5 97.21$
6 92.19$ 15,979$ 191,749$ 6 95.88$ 16,619$ 199,430$ 6 96.46$ 16,719$ 200,630$ 6 100.32$ 17,389$ 208,666$ 6 102.33$ 17,737$ 212,846$
1 73.59$ 1 76.40$ 1 76.98$ 1 79.91$ 1 81.52$
2 77.43$ 2 80.42$ 2 81.00$ 2 84.12$ 2 85.81$
3 81.47$ 3 84.65$ 3 85.23$ 3 88.55$ 3 90.33$
4 85.73$ 4 89.10$ 4 89.68$ 4 93.21$ 4 95.08$
5 90.21$ 5 93.79$ 5 94.37$ 5 98.12$ 5 100.08$
6 94.93$ 16,454$ 197,448$ 6 98.73$ 17,113$ 205,358$ 6 99.31$ 17,213$ 206,558$ 6 103.28$ 17,902$ 214,822$ 6 105.35$ 18,261$ 219,128$
1 60.72$ 1 63.02$ 1 63.60$ 1 66.01$ 1 67.33$
2 63.89$ 2 66.34$ 2 66.92$ 2 69.48$ 2 70.87$
3 67.22$ 3 69.83$ 3 70.41$ 3 73.14$ 3 74.60$
4 70.73$ 4 73.50$ 4 74.08$ 4 76.99$ 4 78.53$
5 74.42$ 5 77.37$ 5 77.95$ 5 81.04$ 5 82.66$
6 78.31$ 13,573$ 162,878$ 6 81.44$ 14,116$ 169,395$ 6 82.02$ 14,216$ 170,595$ 6 85.30$ 14,785$ 177,424$ 6 87.01$ 15,082$ 180,981$
1 73.55$ 1 76.35$ 1 76.93$ 1 79.88$ 1 81.48$
2 77.39$ 2 80.37$ 2 80.95$ 2 84.08$ 2 85.77$
3 81.43$ 3 84.60$ 3 85.18$ 3 88.50$ 3 90.28$
4 85.68$ 4 89.05$ 4 89.63$ 4 93.16$ 4 95.03$
5 90.16$ 5 93.74$ 5 94.32$ 5 98.06$ 5 100.03$
6 94.87$ 16,444$ 197,323$ 6 98.67$ 17,103$ 205,234$ 6 99.25$ 17,203$ 206,434$ 6 103.22$ 17,891$ 214,698$ 6 105.29$ 18,250$ 219,003$
1 71.47$ 1 74.20$ 1 74.78$ 1 77.62$ 1 79.17$
2 75.20$ 2 78.10$ 2 78.68$ 2 81.71$ 2 83.34$
3 79.13$ 3 82.21$ 3 82.79$ 3 86.01$ 3 87.73$
4 83.26$ 4 86.54$ 4 87.12$ 4 90.54$ 4 92.35$
5 87.61$ 5 91.09$ 5 91.67$ 5 95.30$ 5 97.21$
6 92.19$ 15,979$ 191,749$ 6 95.88$ 16,619$ 199,430$ 6 96.46$ 16,719$ 200,630$ 6 100.32$ 17,389$ 208,666$ 6 102.33$ 17,737$ 212,846$
1 55.90$ 1 58.00$ 1 58.58$ 1 60.78$ 1 62.00$
2 58.81$ 2 61.05$ 2 61.63$ 2 63.98$ 2 65.26$
3 61.87$ 3 64.26$ 3 64.84$ 3 67.35$ 3 68.69$
4 65.10$ 4 67.64$ 4 68.22$ 4 70.89$ 4 72.31$
5 68.50$ 5 71.20$ 5 71.78$ 5 74.62$ 5 76.12$
6 72.07$ 12,492$ 149,899$ 6 74.95$ 12,991$ 155,896$ 6 75.53$ 13,091$ 157,096$ 6 78.55$ 13,615$ 163,384$ 6 80.13$ 13,889$ 166,670$
646 Non‐exempt NS HAZ MAT INSPECTOR
647 Non‐exempt NS FIRE FIGHTER HAZ MAT
644 Non‐exempt NS F FIGHTR PARAMEDC‐12.5
645 Non‐exempt NS HAZ MAT SPEC
642 Non‐exempt NS 40‐HR TRAINING CAPTAIN
643 Non‐exempt NS 40‐HR TRAINING CAPTAIN EMT
639 Non‐exempt NS CAPTAIN PARAMEDIC‐12.5
641 Non‐exempt NS INSPCTR PARAMDC‐12.5
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment D-IAFF Salary Schedule 2023 - 2025
Item 5: Staff Report Pg. 274
Packet Pg. 335 of 473
Job
Code FLSA SH/NS Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual
International Fire Fighters Association
Salary Schedule
Effective 01/11/2025
(2% Increase)
Effective 07/12/2024
(4% Increase)
Effective 01/13/2024
(Med Ben)
Effective 01/28/2023
(MKT 5% + 1‐1.5% CPT PARA+ Med Ben)
Effective 07/15/2023
(4% Increase)
1 59.70$ 1 61.97$ 1 62.55$ 1 64.90$ 1 66.21$
2 62.81$ 2 65.23$ 2 65.81$ 2 68.32$ 2 69.69$
3 66.09$ 3 68.66$ 3 69.24$ 3 71.92$ 3 73.36$
4 69.54$ 4 72.27$ 4 72.85$ 4 75.71$ 4 77.22$
5 73.17$ 5 76.07$ 5 76.65$ 5 79.69$ 5 81.28$
6 76.99$ 13,344$ 160,133$ 6 80.07$ 13,879$ 166,546$ 6 80.65$ 13,979$ 167,746$ 6 83.88$ 14,539$ 174,470$ 6 85.56$ 14,830$ 177,965$
1 71.47$ 1 74.20$ 1 74.78$ 1 77.62$ 1 79.17$
2 75.20$ 2 78.10$ 2 78.68$ 2 81.71$ 2 83.34$
3 79.13$ 3 82.21$ 3 82.79$ 3 86.01$ 3 87.73$
4 83.26$ 4 86.54$ 4 87.12$ 4 90.54$ 4 92.35$
5 87.61$ 5 91.09$ 5 91.67$ 5 95.30$ 5 97.21$
6 92.19$ 15,979$ 191,749$ 6 95.88$ 16,619$ 199,430$ 6 96.46$ 16,719$ 200,630$ 6 100.32$ 17,389$ 208,666$ 6 102.33$ 17,737$ 212,846$
1 54.85$ 1 56.91$ 1 57.49$ 1 59.66$ 1 60.86$
2 57.71$ 2 59.91$ 2 60.49$ 2 62.80$ 2 64.06$
3 60.72$ 3 63.06$ 3 63.64$ 3 66.11$ 3 67.43$
4 63.88$ 4 66.38$ 4 66.96$ 4 69.59$ 4 70.98$
5 67.21$ 5 69.87$ 5 70.45$ 5 73.25$ 5 74.72$
6 70.72$ 12,258$ 147,091$ 6 73.55$ 12,749$ 152,984$ 6 74.13$ 12,849$ 154,184$ 6 77.10$ 13,364$ 160,368$ 6 78.65$ 13,633$ 163,592$
1 57.49$ 1 59.66$ 1 60.24$ 1 62.51$ 1 63.77$
2 60.49$ 2 62.80$ 2 63.38$ 2 65.80$ 2 67.13$
3 63.64$ 3 66.11$ 3 66.69$ 3 69.26$ 3 70.66$
4 66.96$ 4 69.59$ 4 70.17$ 4 72.91$ 4 74.38$
5 70.45$ 5 73.25$ 5 73.83$ 5 76.75$ 5 78.29$
6 74.13$ 12,849$ 154,184$ 6 77.10$ 13,364$ 160,368$ 6 77.68$ 13,464$ 161,568$ 6 80.79$ 14,004$ 168,043$ 6 82.41$ 14,284$ 171,413$
1 58.60$ 1 60.79$ 1 61.37$ 1 63.70$ 1 64.97$
2 61.65$ 2 63.99$ 2 64.57$ 2 67.05$ 2 68.39$
3 64.86$ 3 67.36$ 3 67.94$ 3 70.58$ 3 71.99$
4 68.24$ 4 70.91$ 4 71.49$ 4 74.29$ 4 75.78$
5 71.80$ 5 74.64$ 5 75.22$ 5 78.20$ 5 79.77$
6 75.55$ 13,095$ 157,138$ 6 78.57$ 13,619$ 163,426$ 6 79.15$ 13,719$ 164,626$ 6 82.32$ 14,269$ 171,226$ 6 83.97$ 14,555$ 174,658$
1 61.41$ 1 63.73$ 1 64.31$ 1 66.75$ 1 68.09$
2 64.61$ 2 67.08$ 2 67.66$ 2 70.26$ 2 71.67$
3 67.98$ 3 70.61$ 3 71.19$ 3 73.96$ 3 75.44$
4 71.53$ 4 74.33$ 4 74.91$ 4 77.85$ 4 79.41$
5 75.26$ 5 78.24$ 5 78.82$ 5 81.95$ 5 83.59$
6 79.19$ 13,726$ 164,709$ 6 82.36$ 14,276$ 171,309$ 6 82.94$ 14,376$ 172,509$ 6 86.26$ 14,952$ 179,421$ 6 87.99$ 15,252$ 183,019$
1 70.13$ 1 72.80$ 1 73.38$ 1 76.18$ 1 77.71$
2 73.79$ 2 76.63$ 2 77.21$ 2 80.19$ 2 81.80$
3 77.64$ 3 80.66$ 3 81.24$ 3 84.41$ 3 86.10$
4 81.70$ 4 84.91$ 4 85.49$ 4 88.85$ 4 90.63$
5 85.97$ 5 89.38$ 5 89.96$ 5 93.53$ 5 95.40$
6 90.46$ 15,679$ 188,150$ 6 94.08$ 16,307$ 195,686$ 6 94.66$ 16,407$ 196,886$ 6 98.45$ 17,065$ 204,776$ 6 100.42$ 17,406$ 208,874$
1 73.45$ 1 76.26$ 1 76.84$ 1 79.78$ 1 81.37$
2 77.29$ 2 80.27$ 2 80.85$ 2 83.98$ 2 85.65$
3 81.33$ 3 84.49$ 3 85.07$ 3 88.40$ 3 90.16$
4 85.58$ 4 88.94$ 4 89.52$ 4 93.05$ 4 94.91$
5 90.05$ 5 93.62$ 5 94.20$ 5 97.95$ 5 99.91$
6 94.76$ 16,425$ 197,094$ 6 98.55$ 17,082$ 204,984$ 6 99.13$ 17,182$ 206,184$ 6 103.10$ 17,871$ 214,448$ 6 105.17$ 18,229$ 218,754$
655 Non‐exempt NS FIRE CAPTAIN EMT
654 Non‐exempt NS FIRE CAP HAZ MAT EMT
652 Non‐exempt NS FIRE APPARATUS OP EMT
653 Non‐exempt NS FIRE AP OP HZ MT EMT
649 Non‐exempt NS FIRE FIGHTER EMT
651 Non‐exempt NS FIRE FGHTR HZ MT EMT
650 Non‐exempt NS FIRE APPR OP HAZ MAT
648 Non‐exempt NS FIRE CAPTAIN HAZ MAT
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment D-IAFF Salary Schedule 2023 - 2025
Item 5: Staff Report Pg. 275
Packet Pg. 336 of 473
Job
Code FLSA SH/NS Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual
International Fire Fighters Association
Salary Schedule
Effective 01/11/2025
(2% Increase)
Effective 07/12/2024
(4% Increase)
Effective 01/13/2024
(Med Ben)
Effective 01/28/2023
(MKT 5% + 1‐1.5% CPT PARA+ Med Ben)
Effective 07/15/2023
(4% Increase)
1 73.59$ 1 76.40$ 1 76.98$ 1 79.91$ 1 81.52$
2 77.43$ 2 80.42$ 2 81.00$ 2 84.12$ 2 85.81$
3 81.47$ 3 84.65$ 3 85.23$ 3 88.55$ 3 90.33$
4 85.73$ 4 89.10$ 4 89.68$ 4 93.21$ 4 95.08$
5 90.21$ 5 93.79$ 5 94.37$ 5 98.12$ 5 100.08$
6 94.93$ 16,454$ 197,448$ 6 98.73$ 17,113$ 205,358$ 6 99.31$ 17,213$ 206,558$ 6 103.28$ 17,902$ 214,822$ 6 105.35$ 18,261$ 219,128$
1 62.36$ 1 64.71$ 1 65.29$ 1 67.77$ 1 69.13$
2 65.61$ 2 68.12$ 2 68.70$ 2 71.34$ 2 72.77$
3 69.03$ 3 71.71$ 3 72.29$ 3 75.09$ 3 76.60$
4 72.63$ 4 75.48$ 4 76.06$ 4 79.04$ 4 80.63$
5 76.42$ 5 79.45$ 5 80.03$ 5 83.20$ 5 84.87$
6 80.41$ 13,937$ 167,246$ 6 83.63$ 14,496$ 173,950$ 6 84.21$ 14,596$ 175,150$ 6 87.58$ 15,181$ 182,166$ 6 89.34$ 15,486$ 185,827$
1 66.61$ 1 69.15$ 1 69.73$ 1 72.38$ 1 73.83$
2 70.09$ 2 72.79$ 2 73.37$ 2 76.19$ 2 77.72$
3 73.75$ 3 76.62$ 3 77.20$ 3 80.20$ 3 81.81$
4 77.60$ 4 80.65$ 4 81.23$ 4 84.42$ 4 86.12$
5 81.65$ 5 84.89$ 5 85.47$ 5 88.86$ 5 90.65$
6 85.92$ 14,892$ 178,707$ 6 89.36$ 15,489$ 185,869$ 6 89.94$ 15,589$ 187,069$ 6 93.54$ 16,214$ 194,563$ 6 95.42$ 16,539$ 198,474$
1 79.72$ 1 82.76$ 1 83.34$ 1 86.55$ 1 88.27$
2 83.88$ 2 87.12$ 2 87.70$ 2 91.10$ 2 92.92$
3 88.26$ 3 91.70$ 3 92.28$ 3 95.89$ 3 97.81$
4 92.87$ 4 96.53$ 4 97.11$ 4 100.94$ 4 102.96$
5 97.73$ 5 101.61$ 5 102.19$ 5 106.25$ 5 108.38$
6 102.84$ 17,825$ 213,901$ 6 106.96$ 18,540$ 222,477$ 6 107.54$ 18,640$ 223,677$ 6 111.84$ 19,386$ 232,627$ 6 114.08$ 19,774$ 237,286$
1 73.59$ 1 76.40$ 1 76.98$ 1 79.91$ 1 81.52$
2 77.43$ 2 80.42$ 2 81.00$ 2 84.12$ 2 85.81$
3 81.47$ 3 84.65$ 3 85.23$ 3 88.55$ 3 90.33$
4 85.73$ 4 89.10$ 4 89.68$ 4 93.21$ 4 95.08$
5 90.21$ 5 93.79$ 5 94.37$ 5 98.12$ 5 100.08$
6 94.93$ 16,454$ 197,448$ 6 98.73$ 17,113$ 205,358$ 6 99.31$ 17,213$ 206,558$ 6 103.28$ 17,902$ 214,822$ 6 105.35$ 18,261$ 219,128$
1 75.73$ 1 78.61$ 1 79.19$ 1 82.22$ 1 83.87$
2 79.68$ 2 82.75$ 2 83.33$ 2 86.55$ 2 88.28$
3 83.84$ 3 87.10$ 3 87.68$ 3 91.11$ 3 92.93$
4 88.22$ 4 91.68$ 4 92.26$ 4 95.90$ 4 97.82$
5 92.83$ 5 96.51$ 5 97.09$ 5 100.95$ 5 102.97$
6 97.68$ 16,931$ 203,168$ 6 101.59$ 17,609$ 211,307$ 6 102.17$ 17,709$ 212,507$ 6 106.26$ 18,418$ 221,021$ 6 108.39$ 18,788$ 225,451$
1 64.03$ 1 66.47$ 1 67.05$ 1 69.59$ 1 70.98$
2 67.37$ 2 69.97$ 2 70.55$ 2 73.25$ 2 74.72$
3 70.89$ 3 73.65$ 3 74.23$ 3 77.11$ 3 78.65$
4 74.59$ 4 77.53$ 4 78.11$ 4 81.17$ 4 82.79$
5 78.49$ 5 81.61$ 5 82.19$ 5 85.44$ 5 87.15$
6 82.59$ 14,315$ 171,781$ 6 85.90$ 14,889$ 178,672$ 6 86.48$ 14,989$ 179,872$ 6 89.94$ 15,590$ 187,075$ 6 91.74$ 15,902$ 190,819$
1 68.43$ 1 71.03$ 1 71.61$ 1 74.35$ 1 75.84$
2 72.00$ 2 74.77$ 2 75.35$ 2 78.26$ 2 79.83$
3 75.76$ 3 78.71$ 3 79.29$ 3 82.38$ 3 84.03$
4 79.72$ 4 82.85$ 4 83.43$ 4 86.72$ 4 88.45$
5 83.89$ 5 87.21$ 5 87.79$ 5 91.28$ 5 93.11$
6 88.27$ 15,300$ 183,595$ 6 91.80$ 15,912$ 190,944$ 6 92.38$ 16,012$ 192,144$ 6 96.08$ 16,654$ 199,846$ 6 98.01$ 16,988$ 203,861$
656
657
Non‐exempt NS CAPT PRMDC‐12.5 EMT
Non‐exempt NS FIRE INSPECTOR EMT
Non‐exempt NS F FGH PRDMD‐12.5 EMT
673 Non‐exempt NS FIRE FGHTR EMT HAZ MT PARA
674 Non‐exempt NS FIRE AP OP EMT HAZ MT PARA
660 Non‐exempt NS HAZ MAT INSPECTOR EMT
659 Non‐exempt NS HAZ MAT SPEC EMT
658 Non‐exempt NS OPR PRMDC‐12.5 EMT
697
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment D-IAFF Salary Schedule 2023 - 2025
Item 5: Staff Report Pg. 276
Packet Pg. 337 of 473
Job
Code FLSA SH/NS Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual
International Fire Fighters Association
Salary Schedule
Effective 01/11/2025
(2% Increase)
Effective 07/12/2024
(4% Increase)
Effective 01/13/2024
(Med Ben)
Effective 01/28/2023
(MKT 5% + 1‐1.5% CPT PARA+ Med Ben)
Effective 07/15/2023
(4% Increase)
1 81.91$ 1 85.05$ 1 85.63$ 1 88.91$ 1 90.71$
2 86.19$ 2 89.53$ 2 90.11$ 2 93.59$ 2 95.48$
3 90.70$ 3 94.24$ 3 94.82$ 3 98.52$ 3 100.50$
4 95.44$ 4 99.20$ 4 99.78$ 4 103.71$ 4 105.79$
5 100.43$ 5 104.42$ 5 105.00$ 5 109.17$ 5 111.36$
6 105.69$ 18,319$ 219,829$ 6 109.92$ 19,053$ 228,634$ 6 110.50$ 19,153$ 229,834$ 6 114.92$ 19,919$ 239,034$ 6 117.22$ 20,318$ 243,818$
662 Non‐exempt NS FIRE CPT EMT HAZ MT PARA
<td style="background-color: rgb(211,211,211); border-color: rgb(101, 176, 176); text-align: center; border: 1px solid black;
border-radius: 10px;">
Item 5
Attachment D-IAFF Salary Schedule 2023 - 2025
Item 5: Staff Report Pg. 277
Packet Pg. 338 of 473
1
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8
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
STAFF REPORT
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Administrative Services
Meeting Date: February 6, 2023
TITLE
Approval of Fiscal Year 2022 Palo Alto Public Improvement Corporation's Annual Financial
Statement
RECOMMENDATION
Staff recommends that the Board of Directors of the Palo Alto Public Improvement Corporation
(PIC) approve the Fiscal Year (FY) 2022 Annual Financial Report for the Palo Alto Public
Improvement Corporation.
BACKGROUND
The PIC is a nonprofit corporation formed by the City in 1983, allowing the City to issue
Certificates of Participation (COPs) to fund capital improvements. The PIC, through a lease
structure, finances the acquisition, improvement, and construction of City facilities. The PIC
uses the lease payments by the City’s General Fund to pay the debt service on the COPs. On July
13, 1998, Council adopted a resolution establishing itself as the Board of Directors of the PIC.
The bylaws of the PIC require the Board of Directors of the Corporation to meet at least
annually and approve the annual financial report for the Corporation. Therefore, the City
Council is required to meet annually as the Board of the PIC.
In 1983 and 1998, the City of Palo Alto issued COPs to fund improvements to the Civic Center
and the Golf Course, respectively. In 2002, the Civic Center bonds were refinanced due to a
lower interest rate environment and COPs were issued to finance the construction of
commercial space adjacent to the new parking structure on Bryant/Florence Street. These
bonds (referred to as the Downtown Parking Improvement bonds or 2002B COP) were used to
build a two story above-ground structure of approximately 7,638 square feet at 445 Bryant
Street, which was previously leased to a commercial tenant (Form Fitness Gym). The space is
currently vacant.
In fiscal year 2018, the City issued the 2018 Capital Improvement Project and Refinancing COPs
in the amount of $9 million to refinance the 2002B COPs ($0.6 million) and to finance
renovations for the Palo Alto Municipal Golf Course ($8.4 million). Fire Station 1 was used as
Item 6
Item 6 Staff Report
Item 6: Staff Report Pg. 1 Packet Pg. 339 of 473
1
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9
8
the leased property and collateral for these COPs since it had a market value closer to the COPs
issuance amount. The net present value savings of $0.2 million or 6.47 percent on the 2002B
refunded bonds and the Civic Center was substituted for Fire Station 1 as the leased
property/collateral. This provided flexibility to leverage the high value of the Civic Center to
finance the 2021 Public Safety building COPs.
In fiscal year 2019, the City issued the California Avenue Parking Garage Tax-exempt Series A
($26.8 million plus $4.9 million premium) and Taxable Series B ($10.6 million) COPs. These
bonds were issued to fund the construction of the new California Avenue parking garage.
Rinconada Library was used as collateral during the garage construction and, upon completion
of the garage, the newly build California Avenue Parking garage became the leased
property/collateral for these COPs. To preserve greater operational flexibility to use this garage
facility over the life of the bonds (e.g. lease portion of the garage for private parking or other
commercial use), a portion of the bonds were issued as taxable bonds.
In fiscal year 2021, the City issued the 2021 Public Safety Building tax-exempt COPs ($101.5
million plus $6.5 million premium) for the construction of the City’s new public safety building.
The debt service is payable solely from and secured by the lease payments to be made by the
City’s General Fund to the Public Improvement Corporation pursuant to the Lease Agreement.
Civic Center was used as collateral during the building construction and, upon completion of the
building, the newly build Public Safety Building will become the leased property/collateral for
these COPs.
The reserve account requirement was waived on all the outstanding COPs due to the City being
a highly rated bond issuer. This resulted in additional bonds issuance amount and the related
interest savings.
ANALYSIS
The attached financial statement shows the financial condition of the PIC. The debt service
payments have been made on time and all financial requirements have been met. At year-end,
June 30, 2022, total outstanding debt principal on the COPs equaled $145.6 million as follows:
COPs Description
Principal
Outstanding
(millions)
Fiscal Year Debt
will be Retired
2018 Capital Improvement (2002B
Refinance and Golf Course) $ 8.4 2048
2019 California Ave. Parking Garage $ 35.7 2049
2021 Public Safety Building $101.5 2051
Total COPs $145.6
Staff recommends that the Board of Directors of the Palo Alto Public Improvement Corporation
(PIC) approve the FY 2022 financial statement for the PIC.
Item 6
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8
POLICY IMPLICATIONS
Approval of the Palo Alto Public Improvement Corporation’s financial statements is consistent
with prior Council policy direction and resolutions.
FISCAL/RESOURCE IMPACT
Approval of the Palo Alto Public Improvement Corporation’s financial statements will have no
resource impact.
STAKEHOLDER ENGAGEMENT
Staff works internally and coordinates with the City Auditor’s Office third party external auditor
Macias Gini & O’Connell LLP (MGO) to prepare this report.
ENVIRONMENTAL REVIEW
This activity is not a project under California Environmental Quality Act (CEQA) as defined in
CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or
reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS
Attachment A: Palo Alto Public Improvement Fiscal Year 2022 Annual Financial Statement
APPROVED BY:
Kiely Nose, Assistant City Manager
Report #: 2301-0751
Item 6
Item 6 Staff Report
Item 6: Staff Report Pg. 3 Packet Pg. 341 of 473
PALO ALTO PUBLIC IMPROVEMENT
CORPORATION
(A Component Unit of the
City of Palo Alto, California)
Annual Financial Report
For the Year Ended June 30, 2022
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 4 Packet Pg. 342 of 473
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California)
Annual Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
Independent Auditor’s Report ................................................................................................................... 1
Management’s Discussion and Analysis (Unaudited) .............................................................................. 3
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position ................................................................................................................... 5
Statement of Activities ....................................................................................................................... 6
Debt Service Fund Financial Statements:
Balance Sheet ..................................................................................................................................... 7
Statement of Revenues, Expenditures and Changes in Fund Balance ................................................ 8
Notes to the Basic Financial Statements .................................................................................................. 9
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 5 Packet Pg. 343 of 473
www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
1
Independent Auditor’s Report
The Honorable Mayor and
Members of the City Council of the
City of Palo Alto, California
Opinions
We have audited the financial statements of the governmental activities and the major fund of the Palo
Alto Public Improvement Corporation (Corporation), a component unit of the City of Palo Alto,
California (City), as of and for the year ended June 30, 2022, and the related notes to the financial
statements, which collectively comprise the Corporation’s basic financial statements as listed in the table
of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities and the major fund of the
Corporation as of June 30, 2022, and the respective changes in financial position thereof for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the Corporation and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Corporation’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 6 Packet Pg. 344 of 473
2
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a
material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered material
if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment
made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• exercise professional judgment and maintain professional skepticism throughout the audit.
• identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
• obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Corporation’s internal control. Accordingly, no such opinion
is expressed.
• evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Corporation’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Walnut Creek, California
November 16, 2022
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 7 Packet Pg. 345 of 473
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California)
Management’s Discussion & Analysis (Unaudited)
For the Year Ended June 30, 2022
3
The Palo Alto Public Improvement Corporation (Corporation), a component unit of the City of Palo Alto
(City), follows the provisions of Governmental Accounting Standards Board (GASB) Statement No. 34,
Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local
Governments. The Corporation is controlled by the City and was organized to assist the City in financing
public improvements. The Corporation issues debt and turns the proceeds of the debt over to the City
under lease agreements that provide a revenue source for the repayment of this debt. The Corporation has
three outstanding debts and has turned over the proceeds to the City, which pledged certain lease
payments as collateral for this debt as discussed in Note 4 to the financial statements.
FINANCIAL HIGHLIGHTS
GASB Statement No. 34 requires the issuance of government-wide financial statements as well as fund
financial statements. The government-wide financial statements report the balance of the Corporation’s
long-term debt while the individual fund statements do not.
In fiscal year 2018, the City issued 2018 Capital Improvement Project and Refinancing Certificates of
Participation (2018 COPs) in the amount of $9.0 million to refinance the 2002B Downtown Parking
Improvements Certificates of Participation remaining balance of $805 thousand, and also to fund the Palo
Alto Municipal Golf Course renovations.
In fiscal year 2019, the City issued the 2019 California Avenue Parking Garage tax exempt Series A and
taxable Series B Certificates of Participation (2019A and 2019B COPs) in the amount of $26.8 million
plus $4.9 million premium, and $10.6 million, respectively. The 2019A and 2019B COPs are issued to
fund the construction of the new California Avenue parking garage.
In fiscal year 2021, the City issued the 2021 Public Safety Building Certificates of Participation (2021
COPs) in the amount of $101.5 million plus $6.5 million premium. The 2021 COPs are issued to fund the
construction of the new public safety building.
As of June 30, 2022, the Corporation has the following outstanding debt: the 2018 COPs, 2019A and
2019B COPs, and 2021 COPs.
At the government-wide level, the interest and fiscal agent charges were $4.8 million for fiscal year 2022,
an increase of $0.8 million from the prior year. The interest on leases from the City of Palo Alto was $1.7
million, a decrease of $6.9 million from the prior year. The increases of interest and fiscal charges and
decrease of interest on leases are due to the issuance of the 2021 COPs during the prior year which lead to
the increase of outstanding bonds and incurrence of one-time costs of issuance.
The Corporation ended fiscal year 2022 with total assets of $158.8 million, a decrease of $4.4 million
from the prior year. Total assets consisted of $1.5 million in cash and investments, $1.1 million of lease
interest receivable from the City of Palo Alto, and $156.2 million of investment in leases to the City of
Palo Alto. The total liabilities were $157.2 million, a decrease of $1.2 million from the prior year. The
decrease of assets and liabilities resulted from scheduled principal and interest payments of the 2018
COPS’s, the 2019A and 2019B COPSs and interest payments of the 2021 COPs.
At the fund level, the Corporation’s expenditures exceeded revenues by $3.1 million due to interest
payments of the 2021 COPs. As of June 30, 2022, the Corporation had one fund, the Debt Service Fund,
which reported a $1.5 million restricted fund balance.
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 8 Packet Pg. 346 of 473
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California)
Management’s Discussion & Analysis (Unaudited) (Continued)
For the Year Ended June 30, 2022
4
OVERVIEW OF THE CORPORATION’S BASIC FINANCIAL STATEMENTS
The annual financial report is comprised of two parts:
1) Management’s discussion and analysis (this part),
2) The basic financial statements, which include the government-wide and the fund financial statements,
along with the notes to these financial statements.
The basic financial statements comprise the government-wide financial statements and the fund financial
statements. These two sets of financial statements provide two different views of the Corporation’s
financial activities and financial positions, both short-term and long-term.
The government-wide financial statements provide a long-term view of the Corporation’s activities as a
whole, and comprise the statement of net position and the statement of activities. The statement of net
position provides information about the financial position of the Corporation as a whole, including all its
long-term liabilities on the full accrual basis, similar to that used by corporations. The statement of
activities provides information about all the Corporation’s revenues and expenses on the full accrual
basis, with the emphasis on measuring net revenues or expenses of the Corporation’s program. The
statement of activities explains in detail the change in net position for the year.
The fund financial statements report the Corporation’s operations in more detail than the corporate-wide
statements and focus primarily on the short-term activities of the debt service fund. Fund financial
statements measure only current revenues and expenditures; current assets, liabilities and fund balances;
and they exclude capital assets and long-term debt.
Together, these statements along with the notes to the financial statements are called the basic financial
statements.
DEBT ADMINISTRATION
The Corporation issues debt in the form of Certificates of Participation (COPs) to be repaid from future
lease receipts from the City. Legally, these COPs issues are the Corporation’s debt only; the City is liable
only for the payment of the amounts set forth in the lease securing each debt issue.
As of June 30, 2022, the Corporation has the following outstanding debt: 2018 COPs, 2019A and 2019B
COPs, and 2021 COPs with outstanding principal balances of $8.4 million, 35.7 million and $101.5
million, respectively.
ECONOMIC OUTLOOK AND MAJOR INITIATIVES
The economy of the City and its major initiatives for the coming year are discussed in detail in the City’s
Annual Comprehensive Financial Report.
CONTACTING THE CORPORATION’S FINANCIAL MANAGEMENT
These Basic Financial Statements are intended to provide citizens, taxpayers, investors, and creditors with
a general overview of the Corporation’s finances. Questions about these financial statements should be
directed to the Finance Department of the City of Palo Alto, 250 Hamilton Avenue, Palo Alto, CA 94301.
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 9 Packet Pg. 347 of 473
Assets
Cash held for operations 43,376$
Cash and investments held by trustee 1,488,794
Lease interest receivable 1,070,654
Investment in leases to the City of Palo Alto 156,160,520
Total assets 158,763,344
Liabilities
Interest payable 1,070,654
Long-term debt:
Due in one year 1,268,253
Due in more than one year 154,892,267
Total liabilities 157,231,174
Net Position
Restricted for debt service 1,532,170$
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto)
Statement of Net Position
June 30, 2022
See accompanying notes to financial statements.
5
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 10 Packet Pg. 348 of 473
Expenses
Interest and fiscal agent charges 4,808,310$
Program revenues
Interest on leases from the City of Palo Alto 1,679,174
Net program revenues (3,129,136)
General revenues
Investment earnings 424
Change in net position (3,128,712)
Net position, beginning of the year 4,660,882
Net position, end of the year 1,532,170$
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto)
Statement of Activities
For the Year Ended June 30, 2022
See accompanying notes to financial statements.
6
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 11 Packet Pg. 349 of 473
Assets
Cash held for operations 43,376$
Cash and investments held by trustee 1,488,794
Lease interest receivable 1,070,654
Investment in leases to City of Palo Alto 156,160,520
Total assets 158,763,344$
Deferred Inflows of Resources
Unavailable lease receipts from the City of Palo Alto 157,231,174$
Fund balance
Restricted for debt service 1,532,170
Total deferred inflows of resources and fund balance 158,763,344$
Reconciliation of fund balance to net position
Fund balance restricted for debt service 1,532,170$
Long-term receivables are not available to pay for current period expenditures
and are considered unavailable on the governmental fund balance sheet 157,231,174
Some liabilities, including bonds payable, are not due and payable in
the current period and therefore are not reported in the Fund:
Interest payable (1,070,654)
Long-term debt due within one year (1,268,253)
Long-term debt due in more than one year (154,892,267)
Net position of governmental activities 1,532,170$
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto)
Balance Sheet
June 30, 2022
Debt Service Fund
See accompanying notes to financial statements.
7
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 12 Packet Pg. 350 of 473
Revenues:
Lease receipts from the City of Palo Alto:
Principal 835,000$
Interest 2,070,960
Other 3,691
Investments earnings 424
Total revenues 2,910,075
Expenditures:
Debt service:
Principal repayment 835,000
Interest and fiscal agent charges 5,192,787
Costs of issuance 11,000
Total expenditures 6,038,787
Deficiency of revenues under expenditures (3,128,712)
Net change in fund balance (3,128,712)
Fund balance, beginning of the year 4,660,882
Fund balance, end of the year 1,532,170$
Reconciliation of net change in fund balance to change in net position
Net change in fund balance - debt service fund (3,128,712)$
Amounts reported for governmental activities in the statement of activities are
different because:
Repayment of bond principal is an expenditure in the governmental funds,
but in the statement of net position the repayment reduces long-term liabilities. 835,000
Interest accrued on long-term debt and amortization of bond premium do not
require the use of current financial resources and therefore are not reported
as expenditures in governmental funds.
Change in interest payable (12,776)
Amortization of bond premium 408,253
Some amounts reported in the statement of revenues, expenditures and changes
in fund balances reflect the timing of collection of assets which are
not includable as revenues on the statement of activities.
Lease receipt for bond principal repayment (835,000)
Lease receipt for interest payment 12,776
Impact of bond premium amortization on lease receipt (408,253)
Change in net position of governmental activities (3,128,712)$
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto)
Statement of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended June 30, 2022
Debt Service Fund
See accompanying notes to financial statements.
8
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 13 Packet Pg. 351 of 473
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California)
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
9
NOTE 1 – DESCRIPTION OF REPORTING ENTITY
The Palo Alto Public Improvement Corporation (the Corporation) was incorporated in September 1983
under the General Nonprofit Corporation Law of the State of California to acquire, construct and lease
capital improvement projects. The Corporation is exempt from federal income taxes under
Section 501(c)(4) of the Internal Revenue Code. The Corporation provides financing of public capital
improvements for the City through the issuance of Certificates of Participation (COPs), a form of debt
which allows investors to participate in a stream of future lease payments. Proceeds from the COPs are
used to construct projects which are leased to the City for lease payments which are sufficient in timing
and amount to meet the debt service requirements of the COPs.
The Corporation is an integral part of the City of Palo Alto, California (City). It primarily services the
City and its governing body is composed of the City Council. Therefore, the financial data of the
Corporation has also been included as a blended component unit within the City’s annual comprehensive
financial report for the year ended June 30, 2022.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Presentation
Government-wide Statements: The statement of net position and the statement of activities include the
financial activities of the Corporation. Eliminations have been made to minimize the double counting of
internal activities.
The statement of activities presents a comparison between direct expenses and program revenues for each
function of the Corporation’s activities. Direct expenses are those that are specifically associated with a
program or function and, therefore, are clearly identifiable to a particular function. Program revenues
include (a) charges paid by the recipients of goods or services offered by the programs, and (b) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular program.
Revenues that are not classified as program revenues, including investment earnings, are presented as
general revenues.
Fund Financial Statements: The fund financial statements provide information about the Corporation’s
funds. The emphasis of fund financial statements is on major individual funds, of which the Corporation
only reports one debt service fund.
(b) Major Fund
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures equal to ten
percent of their fund-type total and five percent of the grand total. The Corporation has one fund which is
reported as a major governmental fund in the accompanying financial statements as follows:
Debt Service Fund – This fund accounts for debt service payments on the Corporation’s long-term debt.
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 14 Packet Pg. 352 of 473
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
10
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
(c) Basis of Accounting
The government-wide financial statements are reported using the economic resources measurement focus
and the full accrual basis of accounting. Revenues are recorded when earned ad expenses are recorded at
the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Under this method, revenues are recognized when measurable and
available. The City considers revenues susceptible to accrual to be available if the revenues are collected
within ninety days after year-end. Expenditures are recorded when the related fund liability is incurred,
except for principal and interest on long-term debt, claims and judgments, and compensated absences,
which are recognized as expenditures to the extent they have matured.
(d) Investment in Leases
Improvements financed by the Corporation are leased to the City for their entire estimated useful life and
will become the City property at the conclusion of the lease on November 1, 2050. The Corporation
therefore records the present value of the lease and considers the leased improvement to have been sold
for this amount when leased.
(e) Net Position
The government-wide financial statements utilize a net position presentation. Net position is further
categorized as net investment in capital assets, restricted and/or unrestricted. As of June 30, 2022, the
entire net position was considered restricted.
Restricted Net Position – This category presents external restrictions imposed by creditors, grantors,
contributors or laws or regulations of other governments and restrictions imposed by law through
constitutional provisions or enabling legislation.
(f) Deferred Inflows of Resources
A deferred inflow of resources is defined as an acquisition of net asset or fund balances applicable to a
future reporting period and will not be recognized as an inflow of resources (revenue) until that time. On
the governmental fund balance sheet, the lease receipts from the City corresponding to the debt are
recorded as deferred inflows of resources since the balances are not current financial resources.
(g) Fund Balances
At June 30, 2022, the Corporation’s governmental fund’s fund balances include the following
classification:
Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by
external resource providers, constitutionally or through enabling legislation. Restrictions may effectively
be changed or lifted only with the consent of resource providers.
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 15 Packet Pg. 353 of 473
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
11
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
(h) Effects of New Pronouncements
As of July 1, 2021, the Corporation implemented the following Governmental Accounting Standards
Board (GASB) Statement:
In June 2017, the GASB issued Statement No. 87, Leases. The objective of this statement is to better
meet the information needs of financial statement users by improving accounting and financial reporting
for leases by governments. This statement increases the usefulness of governments’ financial statements
by requiring recognition of certain lease assets and liabilities for leases that previously were classified as
operating leases and recognized as inflows of resources or outflows of resources based on the payment
provisions of the contract. It establishes a single model for lease accounting based on the foundational
principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is
required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to
recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and
consistency of information about governments’ leasing activities. The application of this statement did
not have a material impact on the financial statements of the Corporation for the fiscal year ended
June 30, 2022.
The Corporation is currently analyzing its accounting practices to determine the potential impact on the
financial statements for the following GASB Statement:
In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections – An
Amendment of GASB Statement No. 62. The primary objective of this statement is to enhance accounting
and financial reporting requirements for accounting changes and error corrections to provide more
understandable, reliable, relevant consistent, and comparable information for making decisions or
assessing accountability. The requirements of this statement are effective for the Corporation’s fiscal
year ending June 30, 2024.
(i) Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
NOTE 3 – CASH AND INVESTMENTS HELD BY TRUSTEE
(a) Interest Rate Risk
Interest rate risk is the risk that a change in market interest rates will adversely affect the fair value of an
investment. Normally, the longer it takes an investment to reach maturity, the greater will be that
investment’s sensitivity to changes in market rates. Information about the sensitivity of the fair values of
the Corporation’s investments to market interest rate fluctuations is provided by the following table that
shows the distribution of the Corporation’s investments by maturity:
Investment Type Amount Maturity Date
Money Market Mutual Fund 1,488,794$ 19 days
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 16 Packet Pg. 354 of 473
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
12
NOTE 3 – CASH AND INVESTMENTS HELD BY TRUSTEE (Continued)
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder
of the investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. As of June 30, 2022, the Corporation’s investments in money market mutual funds
are rated AAAm by Standard & Poor’s.
(b) Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value
of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are
significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The
Corporation’s investments in money market mutual funds are not subject to the fair value hierarchy.
(c) Investment Policy
The Corporation must maintain required amounts of cash and investments by trustee under the terms of
certain debt issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if the
Corporation fails to meet its obligation under these debt issues. The California Government Code (Code)
requires these funds to be invested in accordance with bond indentures or State statutes. All these funds
have been invested as permitted under the Code. The Investment Policy is described in detail in the City’s
Annual Comprehensive Financial Report.
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 17 Packet Pg. 355 of 473
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
13
NOTE 3 – CASH AND INVESTMENTS HELD BY TRUSTEE (Continued)
The table below identifies the investment types that are authorized by the City’s Investment Policy. The
table also identifies certain provisions of the City’s Investment Policy that address interest rate risk, credit
risk and concentration of credit risk.
Maximum
Maturity
Minimum Credit
Quality
Maximum
Percentage of
Portfolio
Maximum
Investment in
One Issuer
U.S. Government Securities 10 years (*) N/A No Limit No Limit
U.S. Government Agency Securities 10 years (*) N/A No Limit (A) No Limit
Certificates of Deposit 10 years (*) N/A 20% 10% of the par
value of
portfolio
Bankers Acceptances 180 days N/A 30% $5 million
Commercial Paper 270 days A-1 15% $3 million (B)
Local Agency Investment Fund N/A N/A No Limit $75 million per
account
Short-Term Repurchase Agreements 1 year N/A No Limit No Limit
City of Palo Alto Bonds N/A N/A No Limit No Limit
Money Market Deposit Accounts N/A N/A No Limit No Limit
Mutual Funds N/A N/A 20% 10%
Negotiable Certificates of Deposit 10 years (*) N/A 10% $5 million
Medium-Term Corporate Notes 5 years AA 10% $5 million
10 years (*) AA/AA2 30% No Limit
Supranational 5 years AA/AA2 20% 10% of the par
value of
portfolio
(A)
(B) The lesser of $3 million or 10% of outstanding commercial paper of any one institution.
(*) The maximum maturity is based on the Investment Policy that is approved by the City Council
and is less restrictive than the California Governmental Code.
Authorized Investment Type
Bonds of State of California Municipal
Agencies & Other U.S. States
Callable and multi-step securities are limited to no more than 25% of the par value of the portfolio, provided that:
1) the potential call dates are known at the time of purchase, 2) the interest rates at which they "step-up" are
known at the time of purchase, and 3) the entire face value of the security is redeemed at the call date.
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 18 Packet Pg. 356 of 473
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
14
NOTE 4 – CERTIFICATES OF PARTICIPATION
The Corporation’s long-term debt activities are presented below:
Balance Balance Amount due
July 1, 2021 Additions Retirements June 30, 2022 in one year
Certificates of Participation
2018 Capital Improvement Project
2.20-4.22%, due 11/1/2047 8,570,000$ -$ 190,000$ 8,380,000$ 195,000$
2019 California Ave. Parking Garage
Series A & B
2.5%-5%, due 11/1/2048 36,365,000 - 645,000 35,720,000 665,000
2021 Public Safety Building
2%-5%, due 11/1/2050 101,505,000 - - 101,505,000 -
Add: Unamortized Premium 10,963,773 - 408,253 10,555,520 408,253
Total 157,403,773$ -$ 1,243,253$ 156,160,520$ 1,268,253$
On June 1, 2018, the City issued the 2018 Capital Improvement Project and Refinancing Certificates of
Participation (2018 COPs) in the amount of $9.0 million to fully refinance the 2002B COPs and to fund
the renovation of the Palo Alto Municipal Golf Course. Principal payments are due annually on
November 1 and interest payments semi-annually at various rates on May 1 and November 1. The 2018
COPs are secured by lease revenues received by the Corporation from any City’s General Fund revenue
source.
On March 21, 2019, the City issued the 2019 California Avenue Parking Garage tax exempt Series A and
taxable Series B Certificates of Participation (2019A and 2019B COPs) in the amount of $26.8 million
plus $4.9 million premium, and $10.6 million, respectively, for the construction of the new California
Avenue Parking Garage. Principal payments are due annually on November 1 and interest payments
semi-annually at various rates on May 1 and November 1. The 2019A and 2019B COPs are secured by
lease revenues received by the Corporation from any City’s General Fund revenue source.
On March 24, 2021, the City issued the 2021 Public Safety Building Certificates of Participation (2021
COPs) in the amount of $101.5 million plus $6.5 million premium for the construction of the new public
safety building. Principal payments are due annually on November 1 and interest payments semi-annually
at various rates on May 1 and November 1. The 2021 COPs are secured by lease revenues received by the
Corporation from any City’s General Fund revenue source.
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 19 Packet Pg. 357 of 473
PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
15
NOTE 4 – CERTIFICATES OF PARTICIPATION (Continued)
Future annual debt service on the outstanding debt is shown below:
For the Year Interest Total
Ending June 30, Principal Payment Payment
2023 860,000$ 4,970,244$ 5,830,244$
2024 3,025,000 4,880,640 7,905,640
2025 3,170,000 4,729,196 7,899,196
2026 3,335,000 4,569,844 7,904,844
2027 3,495,000 4,402,268 7,897,268
2028-2032 20,295,000 19,309,115 39,604,115
2033-2037 24,830,000 14,769,404 39,599,404
2038-2042 28,925,000 10,665,351 39,590,351
2043-2047 33,520,000 6,059,329 39,579,329
2048-2051 24,150,000 1,179,520 25,329,520
145,605,000$ 75,534,911$ 221,139,911$
Events of Default and Acceleration Clauses
Generally, the Corporation is considered to be in default if the Corporation fails to pay the principal of
and interest on the outstanding long-term debt when become due and payable. If an event of default has
occurred and is continuing, the principal of the long-term debt, together with the accrued interest, may be
declared due and payable immediately.
Item 6
Attachment A Palo Alto
Public Improvement
Corporation Fiscal Year
2022 Annual Financial
Report
Item 6: Staff Report Pg. 20 Packet Pg. 358 of 473
Item No. 7. Staff Report Page 1 of 2
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CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: Action
Lead Department: Planning and Development Services
Meeting Date: February 6, 2023
TITLE
Discussion Regarding Gas Powered Leaf Blower Enforcement and Possible Direction to Prepare
an Amendment to the Noise Ordinance (PAMC 9.10) and Resolution to Adjust Financial Penalties
for Violations in Residential Neighborhoods to Facilitate Compliance. (Environmental review: not
a project)
RECOMMENDED MOTION
Staff recommends that Council:
1. Direct staff to prepare an amendment to the Noise Ordinance (PAMC 9.10) to:
a. clarify that citations may be issued to the leaf blower operator, the property
owner authorizing or employing the use of gas powered leaf blower on their
property, or both for violations of the ban; and,
b. remove an existing requirement to provide a five-day notice of violation warning
the operator of a gas powered leaf blower and/or property owner in advance of
issuing a citation for violating the ban;
2. Direct staff to prepare a resolution updating the municipal penalty schedule for violation
of the gas-powered leaf blower ban to $250 for the first offense, $500 for the second
offense and $1,000 for the third and subsequent offenses within a three-year period; and,
3. Endorse the leaf blower enforcement public engagement strategy presented in this
report.
EXECUTIVE SUMMARY
This report summarizes existing gas-powered leaf blower law and current enforcement efforts
and recommends strategies to improve compliance with the City’s ban. The recommendation in
this report advances the City Council’s priority related to community health and safety and a key
workplan project associated with this priority.
Item 7
Item 7 Staff Report
Item 7: Staff Report Pg. 1 Packet Pg. 359 of 473
Item No. 7. Staff Report Page 1 of 2
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BACKGROUND
Gas-powered leaf blowers pollute the air, pose health risks to operators and residents, and
generate extremely loud noise levels disrupting neighborhood tranquility. The State recently
adopted an ordinance to outlaw the sale of new gas-powered leaf blowers (and other gas-
powered landscaping equipment) as early as 2024.
Palo Alto banned the use of gas powered leaf blowers in residential districts in May 2000. For 15
years enforcement was managed by the Police department before being transferred to Planning
and Development Services. Enforcing the City’s ban has been problematic for a number of
reasons, including the high mobility and short duration use of leaf blowers, limited code
enforcement resources to follow up on complaints or pursue proactive enforcement, local
regulatory challenges that require advanced notice or warning letters prior to citing a violator,
and low penalty fees to violators if cited.
Increasingly, residents have grown frustrated by the lack of effective enforcement of gas
powered leaf blowers in residential areas. Several years ago, the City Council authorized a new
code enforcement officer dedicated to leaf blower enforcement. Unfortunately, this position was
only filled for a few months. The vacant position was later eliminated during pandemic-related
budget reductions and was recently restored in the FY 2022 budget. The City’s code enforcement
staff consists of two officers and one part-time retiree, supported by one administrative
associate.
The City receives several hundred leaf blower complaints a year. In any given year between 75%
and 90% of the complaints received are from ten individuals as illustrated in the graph below.
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Leaf blower complaints may be filed using the City’s 311 system which is integrated with the
City’s land use management software (Accela), or by email or phone.1
When a complaint is received for a gas powered leaf blower in a residential district, staff:
a) prepare an initial letter advising the property owner or operator, or both, of an alleged
violation of the City’s ban.
b) A code enforcement officer will follow up with a site visit a couple weeks later in an
attempt to verify the violation. More often than not, staff is unable to validate a violation
and the case is closed.
c) If a violation is observed, notice is sent documenting the violation and advising the
operator of the gas powered leaf blower of corrective action within five days (as required
by existing City ordinance).
d) The code enforcement officer will follow up several weeks later to confirm compliance.
Again, validating compliance or a violation for three consecutive site visits, which is essentially
required with current regulations, is not common due to the uncertainty of when the activity will
next take place and availability of City resources. If, however, a citation is issued, the penalty for
the violation is $100. Second and third violations are $150 and $300, respectively. Except for
three citations issued within the past six weeks, staff is not aware of any other gas powered leaf
blower citations being issued.
Code enforcement officers require evidence to be able to cite and defend a challenge to any
citation. They are required to document the violation with evidence and demonstrate procedural
compliance with the law. When notices of violation or issuance of a citation is served, it is
delivered in-person or via certified mail. Staff has not relied on information or evidence provided
by the public because the City could not attest to the conditions and circumstances of any alleged
violation. More specifically, code enforcement officers do not rely solely on information provided
by the public to issue a citation; however, such information could potentially be used supplement
an officer observed violation.
ANALYSIS
The use of gas powered leaf blowers within residential zones is a violation of Palo Alto Municipal
Code (PAMC) Chapter 9.10, Noise Ordinance. This provision states that persons cannot ‘operate’
gas powered leaf blowers in residential zones. Attachment A provides the current ordinance
section that enables enforcement of gas powered leaf blower use.
Battery or electric powered leaf blowers may be used in residential zones Monday through Friday
9 am to 5 pm, and Saturdays 10 am – 4 pm. No leaf blowers may be used on Sundays in Palo Alto.
1 Options for filing a code enforcement complaint:
PaloAlto311: https://www.cityofpaloalto.org/Residents/Services/Report-an-Issue/Palo-Alto-311
Email: planning.enforcement@cityofpaloalto.org or Phone: (650) 329-2605
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The ban does not apply to non-residential zones, such as commercial and industrial zones. The
ban also does not apply to the City’s parks and parking lots or clean up related work for city
projects, though efforts are underway to minimize its use as detailed later in this report.
The regulatory framework in the City’s municipal code makes it difficult to observe and cite the
gas powered leaf blower operator – the code does not allow issuance of an immediate citation
with the first observed violation. The statutory language is also focused on the operator and limits
the City’s ability to influence compliance by citing the property owner who is employing the gas
powered leaf blower operator. Moreover, if a citation is issued, the penalty schedule does not
impose fees that are likely to deter continued use of gas powered leaf blowers.
Accordingly, staff recommends the following amendments to strengthen enforcement tools and
improve compliance with the City’s ban.
Municipal Code Amendment: Property Owner Liability
Staff recommends an amendment to PAMC Section 9.10.060 item (f) to clarify and assert the
City’s ability to assign property owner liability for knowingly hiring or allowing a person to use a
gas-powered leaf blower on their residentially zoned property. This amendment will specifically
allow staff to hold property owners responsible for knowingly permitting the use of gas powered
leaf blowers by an ‘operator’ on their residential property.
With this change, upon a code enforcement officer observed violation, a warning would be issued
to the property owner that puts them on notice that they are permitting an operator to use a gas
powered leaf blower on their property. If an officer observes this a second time, the property
owner could be cited.
Municipal Code Amendment: Allow Citation Issuance at First Observed Violation
Staff recommends eliminating the need to issue a notice of violation warning five days in advance
of issuing a citation to a gas powered leaf blower operator. This requirement sets up an
impracticality to document consecutive violations for an activity that is typically a short duration
use and variable as to when such violations occur. This existing requirement creates a significant
inefficiency preventing effective code compliance enforcement and detracts the department’s
officers from other work.
With this change, upon a code enforcement officer observed violation, a citation would be issued
on site or mailed to the operator of a gas powered leaf blower in a residential district. This
amendment will improve the City’s ability to proactively enforce the ban and repeated violations
may spur the operator of a gas powered leaf blower to transition toward compliant equipment.
Amend the City’s Penalty Schedule
The financial penalty for violating the gas powered leaf blower ban is not aligned with other
municipal code violations such as littering and smoking in restricted areas. Staff recommends the
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current fees, which are $100, $150 and $300 for the first, second and third (and subsequent)
violations, respectively, be increased to $250, $500, and $1000.
Coupled with the recommended changes above, proactive enforcement and changes to the
penalty schedule may encourage a landscape professional to implement the following actions:
1. Invest and transition to cleaner battery or electric equipment;
2. Use a rake or other hand tools; or
3. Arrange with the property owner for the use or provision of compliant equipment at
the job site.
The first two actions may reasonably result in increased costs to the landscape professional,
either financially or in the time it takes to complete the work. While there are options to avoid
the penalties, this industry typically has tight profit margins and the City Council may want to
consider deferring or phasing in a new penalty schedule.
Public Outreach / Awareness
Prior to proactively enforcing the gas powered leaf blower ban with citations, staff proposes a
public engagement strategy to inform property owners of the local gas powered leaf blower ban
and penalties for violation.
Staff will provide notification through the City’s various social media outlets, the website and
through the City’s utility payment billing service.
Staff prepared a flyer (Attachment B) and is distributing these flyers to operators identified with
gas powered leaf blowers in residential neighborhoods and on the door to residences that are
alleged to have hired or used gas powered leaf blowers on their residential property.
The flyers contain information about the local ban as well as ways a property owner can help
support a landscaper to comply with the law including purchasing an electric or battery-powered
leaf blower for use on their property or to give to the landscaper, and/or keeping back up
batteries handy to swap out when needed.
Additionally, a code enforcement officer will extend an invitation to attend neighborhood group
meetings and present the City’s approach toward enforcement and answer related questions.
Based on Council’s guidance and through adoption of the second reading of a future ordinance,
if directed to prepare, there will be at least four months of concerted engagement to inform the
community and landscape professionals of the anticipated changes.
Incentives for Zero-Emission Landscaping Equipment
California CORE2 has an incentive program to help offset the cost of replacing gas powered
landscaping equipment. California will ban the sale of all new gas-powered landscaping
equipment beginning in 2024 and has allocated $30 million to facilitate this transition. The
2 California CORE website: https://californiacore.org/
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program provides incentives to zero-emission professional landscape equipment. Ten million was
set aside for micro businesses and $17 million was set aside for small businesses. The incentives
are for handheld leaf blowers (up to $300), and up to $400 for backpack leaf blowers, up to 70%
of the MSRP. Most landscaping equipment is eligible for these incentives. The California Air
Resources Board website has additional information about the program, which is administered
by CALSTART a national non-profit that implements the California CORE program.3
City-Owned Equipment and Increase in Staffing
In the FY 2022 budget, the City Council authorized budget for a full-time officer, and the City
hired a new code enforcement officer who began April 2022, to resume handling gas powered
leaf blower violations and complaints.
The FY 2022 budget also included funding to purchase electric or battery leaf blowers to explore
shifting the use of gas powered leaf blowers for city facilities, such as parks, and parking lots, to
electric or battery use. Community Services staff plans on using battery powered backpack
blowers instead of gas powered leaf blowers the vast majority of the time. Gas powered leaf
blowers may still be used when there is a safety concern and the battery powered equipment is
not strong enough to remove plant material or heavy debris from a trail, road or play area. Public
Works has a mix of gas powered and electric leaf blowers but is poised to replace all handheld
gas powered leaf blowers this year.
Greenhouse Gas Emissions
Gas-powered two-stroke leaf blowers and other two-stroke engines create significant air
pollution (such as hydrocarbons, oxides of nitrogen, carbon monoxide, and fine particulate
matter). The California Air Resources Board reported that using a gas-powered two-stroke leaf
blower for one hour emits as much smog-forming pollution (and not GHG emissions) as a 2016
Toyota Camry does driving for 1100 miles. This has a negative impact on air pollution.
The numbers vary widely, but a leaf blower uses significantly less gasoline per hour than a car,
and they spend far less time in use. As a carbon reduction measure, eliminating two-stroke
engines does not provide a large return on investment, but it could provide other significant
benefits if electrified. In Palo Alto, Portable Equipment, which includes gas-powered two-stroke
leaf blowers, accounts for approximately 3,050 MT CO2e or 0.6% of Palo Alto’s overall GHG
emissions.
Commercial/Industrial Districts
When the City has collected information about the use, function and practicality of using electric
or battery powered leaf blowers on its own facilities, if proven successful, the City Council may
3 California Air Resources Board website: https://ww2.arb.ca.gov/news/point-sale-vouchers-now-available-small-
business-landscape-professionals-purchase-discounted
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want to consider extending the gas-powered leaf blower ban citywide to commercial and
industrial districts.
This would make enforcement easier and establish clearer expectations for the community if the
City has one set of regulations that applied equally across the City boundary instead of just
specific areas (residential districts).
Timeline
With Council direction, staff will return with an ordinance and resolution before June 2023.
FISCAL/RESOURCE IMPACT
Increased fees may generate some revenue to the City but is not anticipated to off-set additional
administrative costs associated proactive enforcement or processing appeals that will likely be
filed. Code enforcement generally is not a cost recoverable program.
STAKEHOLDER ENGAGEMENT
The City’s code enforcement officer assigned to enforce the leaf blower ban has provided
handouts to inform landscape professionals and property owners of the ban. The City’s website
also provides information regarding the prohibition of gas powered leaf blowers in residential
neighborhoods.
ENVIRONMENTAL REVIEW
The recommendation in this report does not qualify as a project in accordance with the California
Environmental Quality Act and is therefore not subject to environmental review.
ATTACHMENTS
Attachment A: Current Ordinance Section in PAMC Chapter 9.10
Attachment B: Leaf Blower Flyer
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
Report #: 2211-0388
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Chapter 9.10
NOISE*
Sections:
9.10.010 Declaration of policy.
9.10.020 Definitions.
9.10.030 Residential property noise limits.
9.10.040 Commercial and industrial property noise limits.
9.10.050 Public property noise limits.
9.10.060 Special provisions.
9.10.070 Exception permits.
9.10.080 Violations.
* Editor's Note: Prior ordinance history: Ordinances 2664, 3609, 3640, 3751, 3763, 3790, 3881, 4453.
9.10.010 Declaration of policy.
It is hereby declared to be the policy of the city that the peace, health, safety and welfare of the citizens of Palo Alto require protection
from excessive, unnecessary and unreasonable noises from any and all sources in the community. It is the intention of the city council to
control the adverse effect of such noise sources on the citizen under any condition of use, especially those conditions of use which have
the most severe impact upon any person.
(Ord. 4634 § 2 (part), 2000)
9.10.020 Definitions.
For the purposes of this chapter, certain terms are defined as follows:
(a) "Sound level," expressed in decibels (dB), means a logarithmic indication of the ratio between the acoustic energy present at a
given location and the lowest amount of acoustic energy audible to sensitive human ears and weighted by frequency to account for
characteristics of human hearing, as given in the American National Standards Institute Standard S1.1, "Acoustic Terminology,"
paragraph 2.9, or successor reference. All references to dB in this chapter utilize the A-level weighting scale, abbreviated dBA,
measured as set forth in this section.
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(b) "Precision sound level meter" means a device for measuring sound level in decibel units within the performance specifications in
the American National Standards Institute Standard S1.4, "Specification for Sound Level Meters."
(c) "Noise level" means the maximum continuous sound level or repetitive peak sound level, produced by a source or group of
sources as measured with a precision sound level meter. In order to measure a noise level, the controls of the precision sound level
meter should be arranged to the setting appropriate to the type of noise being measured.
(d) "Local ambient" means the lowest sound level repeating itself during a six-minute period as measured with a precision sound
level meter, using slow response and "A" weighting. The minimum sound level shall be determined with the noise source at issue silent,
and in the same location as the measurement of the noise level of the source or sources at issue. However, for purposes of this chapter,
in no case shall the local ambient be considered or determined to be less than: (1) Thirty dBA for interior noise in Section 9.10.030(b);
(2) Forty dBA in all other sections. If a significant portion of the local ambient is produced by one or more individual identifiable sources
which would otherwise be operating continuously during the six-minute measurement period and contributing significantly to the ambient
sound level, determination of the local ambient shall be accomplished with these separate identifiable noise sources silent.
(e) "Vehicle" means any device by which any person or property may be propelled, moved, or drawn upon a highway or street.
(f) "Property plane" means a vertical plane including the property line which determines the property boundaries in space.
(g) "Emergencies" mean essential activities necessary to restore, preserve, protect or save lives or property from imminent danger of
loss or harm.
(h) "Leaf blower" means any portable machine used to blow leaves, dirt and other debris off sidewalks, driveways, lawns or other
surfaces.
(i) "Residential power equipment" means any mechanically powered saw, sander, drill, grinder, generator, lawnmower, hedge
trimmer, edger, or any other similar tool or device (other than leaf blowers).
(j) "Residential zone" means all lands located within the following zoning districts: RE, R1, R2, RMD, RM-20, RM-30, and RM-40;
"residential zone" also means any lands located within Planned Community (PC) zoning districts actually used for authorized residential
purposes. Any zoning district other than those defined as residential zones are classified as non-residential zones for purposes of this
chapter.
(k) "Holiday" means and includes New Year's Day (January 1), Martin Luther King Day (the third Monday in January), Washington's
Birthday (the third Monday in February), Memorial Day (the last Monday in May), Independence Day (July 4), Labor Day (the first
Monday in September), Columbus Day (the second Monday in October), Veteran's Day (November 11), Thanksgiving Day (the fourth
Thursday in November), and Christmas Day (December 25).
(Ord. 5460 § 15, 2019: Ord. 4634 § 2 (part), 2000)
9.10.030 Residential property noise limits.
(a) No person shall produce, suffer or allow to be produced by any machine, animal or device, or any combination of same, on
residential property, a noise level more than six dB above the local ambient at any point outside of the property plane.
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(b) No person shall produce, suffer or allow to be produced by any machine, animal, or device, or any combination of same, on multi-
family residential property, a noise level more than six dB above the local ambient three feet from any wall, floor, or ceiling inside any
dwelling unit on the same property, when the windows and doors of the dwelling unit are closed, except within the dwelling unit in which
the noise source or sources may be located.
(Ord. 4634 § 2 (part), 2000)
9.10.040 Commercial and industrial property noise limits.
No person shall produce, suffer or allow to be produced by any machine or device, or any combination of same, on commercial or
industrial property, a noise level more than eight dB above the local ambient at any point outside of the property plane.
(Ord. 4634 § 2 (part), 2000)
9.10.050 Public property noise limits.
(a) No person shall produce, suffer or allow to be produced by any machine or device, or any combination of same, on public
property, a noise level more than fifteen dB above the local ambient at a distance of twenty-five feet or more, unless otherwise provided
in this chapter.
(b) Sound performances and special events not exceeding eighty dBA measured at a distance of fifty feet are exempt from this
chapter when approval therefor has been obtained from the appropriate governmental entity, except as provided in Section 22.04.180 of
this code.
(c) Vehicle horns or other devices primarily intended to create a loud noise for warning purposes, shall not be used when the vehicle
is at rest, or when a situation endangering life, health or property is not imminent.
(Ord. 4634 § 2 (part), 2000)
9.10.060 Special provisions.
The special exceptions listed in this section shall apply, notwithstanding the provisions of Sections 9.10.030 through 9.10.050.
Said exceptions shall apply only to the extent and during the hours specified in each of the following enumerated exceptions.
(a) General Daytime Exception. Any noise source which does not produce a noise level exceeding seventy dBA at a distance of
twenty-five feet under its most noisy condition of use shall be exempt from the provisions of Sections 9.10.030(a), 9.10.040 and
9.10.050(a) between the hours of eight a.m. and eight p.m. Monday through Friday, nine a.m. and eight p.m. on Saturday, except
Sundays and holidays, when the exemption herein shall apply between ten a.m. and six p.m.
(b) Construction. Except for construction on residential property as described in subsection (c) of this section, construction, alteration
and repair activities which are authorized by valid city building permit shall be prohibited on Sundays and holidays and shall be
prohibited except between the hours of eight a.m. and six p.m. Monday through Friday, nine a.m. and six p.m. on Saturday provided that
the construction, demolition or repair activities during those hours meet the following standards:
(1) No individual piece of equipment shall produce a noise level exceeding one hundred ten dBA at a distance of twenty-five feet. If
the device is housed within a structure on the property, the measurement shall be made out-side the structure at a distance as close to
twenty-five feet from the equipment as possible.
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(2) The noise level at any point outside of the property plane of the project shall not exceed one hundred ten dBA.
(3) The holder of a valid construction permit for a construction project in a non-residential zone shall post a sign at all entrances to
the construction site upon commencement of construction, for the purpose of informing all contractors and subcontractors, their
employees, agents, materialmen and all other persons at the construction site, of the basic requirements of this chapter.
(A) Said sign(s) shall be posted at least five feet above ground level, and shall be of a white background, with black lettering, which
lettering shall be a minimum of one and one-half inches in height.
(B) Said sign shall read as follows:
CONSTRUCTION HOURS
FOR NON-RESIDENTIAL PROPERTY
(Includes Any and All Deliveries)
MONDAY - FRIDAY........8:00 a.m. to 6:00 p.m.
SATURDAY.........9:00 a.m. to 6:00 p.m.
SUNDAY/HOLIDAYS........Construction prohibited.
Violation of this Ordinance is a misdemeanor punishable by a maximum of six months in jail, $1,000 fine, or both. Violators will be
prosecuted. P.A.M.C. § 9.10.060(b).
(c) Construction on Residential Property. Construction, alteration, demolition or repair activities conducted in a residential zone,
authorized by valid city building permit, shall be prohibited on Sundays and holidays and is prohibited on all other days except during the
hours of eight a.m. and six p.m. Monday through Friday, nine a.m. and six p.m. on Saturday, provided that the construction, demolition
or repair activities during those hours meet the following standards:
(1) No individual piece of equipment shall produce a noise level exceeding one hundred ten dBA at a distance of twenty-five feet. If
the device is housed within a structure on the property, the measurement shall be made outside the structure at a distance as close to
twenty-five feet from the equipment as possible.
(2) The noise level at any point outside of the property plane of the project shall not exceed one hundred ten dBA.
(3) The holder of a valid building permit for a construction project located within any residential zone shall post a sign at all entrances
to the construction site upon commencement of construction, for the purpose of informing all contractors and subcontractors, their
employees, agents, materialmen and all other persons at the construction site, of the basic requirements of this chapter.
(A) Said sign(s) shall be posted no less than three feet and no more than five feet above ground level, shall be visible from the
adjacent street, and shall be of a white background, with black lettering, which lettering shall be a minimum of one and one-half inches
in height.
(B) Said sign shall read as follows:
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CONSTRUCTION HOURS
FOR RESIDENTIAL PROPERTIES
(includes any and all deliveries)
MONDAY-FRIDAY.......8:00 a.m. to 6:00 p.m.
SATURDAY......9:00 a.m. to 6:00 p.m.
SUNDAY/HOLIDAYS.......Construction Prohibited.
Violation of this Ordinance is a misdemeanor punishable by a maximum of six months in jail, $1,000 fine, or both. Violators will be
prosecuted. P.A.M.C. § 9.10.060(b).
(d) Other Equipment. Equipment used by city employees, city contractors, or public utility companies or their contractors, not covered
by subsections (b) and (c) of this section, shall be allowed during the same hours as the exception set forth in subsection (b) of this
section, providing no piece of equipment shall produce a noise level which exceeds one hundred ten dBA, measured at a distance of
twenty-five feet from the equipment.
(e) Residential Power Equipment. Residential power equipment shall be allowed during the hours of eight a.m. and eight p.m.
Monday through Friday, nine a.m. and six p.m. Saturday, and ten a.m. and six p.m. on Sundays and holidays, providing it does not
produce a noise level that exceeds ninety-five dBA measured at twenty-five feet from the equipment and is not being operated for
construction regulated in subsections (b) or (c) of this section.
(f) Leaf Blowers.
(1) No person shall operate any leaf blower which does not bear an affixed manufacturer's label indicating the model number of the
leaf blower and designating a noise level not in excess of sixty-five dBA when measured from a distance of fifty feet utilizing American
National Standard Institute methodology. Any leaf blower which bears such a manufacturer's label shall be presumed to comply with any
noise level limit of this chapter provided that it is operated with all mufflers and full extension tubes supplied by the manufacturer for that
leaf blower. No person shall operate any leaf blower without attachment of all mufflers and full extension tubes supplied by the
manufacturer for that leaf blower.
(2) No person shall operate any leaf blowers within a residential zone except during the following hours: nine a.m. and five p.m.
Monday through Friday and ten a.m. and four p.m. Saturday. No person shall operate any leaf blower within any non-residential zone
except during the following hours: eight a.m. and six p.m. Monday through Friday, and ten a.m. to four p.m. Saturday. No person shall
operate any leaf blowers on Sundays and holidays. No person shall operate any leaf blower powered by an internal combustion engine
within any residential zone after July 1, 2005. Commercial operators of leaf blowers are prohibited from operating any leaf blower within
the city if they do not prominently display a certificate approved by the Chief of Police verifying that the operator has been trained to
operate leaf blowers according to standards adopted by the Chief of Police. In addition to all authorizations and restrictions otherwise
provided in this chapter, public streets, sidewalks, and parking lots in business districts and at the Municipal Golf Course and all city
parks may be cleaned between 4:00 a.m. and 8:00 a.m. using leaf blowers which bear an affixed manufacturer's label indicating the
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model number of the leaf blower and designating a noise level not in excess of sixty-five dBA when measured from a distance of fifty
feet utilizing American National Standard Institute methodology.
(g) Street Sweeping. Street sweeping activities are allowed between the hours of ten p.m. and eight a.m. daily, provided they do not
produce a noise level in excess of ninety dBA, when measured at a distance of twenty-five feet from the street sweeper.
(h) Refuse Collection. Refuse collection activities shall be permitted between the hours of four a.m. and nine p.m. daily, provided they
do not produce a noise level in excess of ninety-five dBA measured at a distance of twenty-five feet from the activity.
(i) Safety Devices. Aural warning devices which are required by law to protect the health, safety and welfare of the community shall
not produce a noise level more than three dBA above the standard or minimum level stipulated by law.
(j) Emergencies. Emergencies are exempt from this chapter.
(k) Public Parking Lot Cleaning. Cleaning equipment (other than leaf blowers), when used in public parking lots, shall be allowed
during the hours of ten p.m. and eight a.m. daily, providing no such piece of equipment shall produce a noise level that exceeds ninety
dBA measured at a distance of twenty-five feet.
(l) Business District Street Cleaning. Cleaning equipment (other than leaf blowers), when used in public streets and public sidewalks
within the public right-of-way in business districts shall be allowed during the hours of ten p.m. and eight a.m. daily, providing no such
piece of equipment shall produce a noise level that exceeds ninety dBA measured at a distance of twenty-five feet.
(Ord. 4778 §§ 2, 3, 2003: Ord. 4754 § 2, 2002: Ord. 4727 § 2, 2002: Ord. 4634 § 2 (part), 2000)
9.10.070 Exception permits.
If the applicant can show to the city manager or his designee that a diligent investigation of available noise abatement techniques
indicates that immediate compliance with the requirements of this chapter would be impractical or unreasonable, a permit to allow
exception from the provisions contained in all or a portion of this chapter may be issued, with appropriate conditions to minimize the
public detriment caused by such exceptions. Any such permit shall be of as short duration as possible up to six months, but renewable
upon a showing of good cause, and shall be conditioned by a schedule for compliance and details of methods therefor in appropriate
cases. Any person aggrieved with the decision of the city manager or his designee may appeal to the city council pursuant to Section
16.40.080 of this code.
(Ord. 4634 § 2 (part), 2000)
9.10.080 Violations.
Any person who violates Section 9.10.060(e) or 9.10.060(f) shall be guilty of an infraction. Any person who violates any of the other
provisions of this chapter shall be guilty of a misdemeanor.
(Ord. 4634 § 2 (part), 2000)
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Chapter 9.10 Noise Ordinance
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GAS-POWERED LEAF BLOWERSPROHIBITED
IN RESIDENTIAL NEIGHBORHOODS
While it’s been a city law since 2005, the City is reminding the public to go
with an electric or battery-powered blower, or grab a rake or broom, for
landscaping and garden clean ups in our residential areas. Gas-powered
leaf blowers not only pollute our air but make a lot of noise that disturb
our neighborhoods. If you see — or hear — somebody using a gas-powered
leaf blower in a residential area, there are a few options to report it.
USING A GAS POWERED LEAF BLOWER MAY BE SUBJECT TO FINES
LANDSCAPERS:
Convert to electric
leaf blower.
PROPERTY OWNERS: Make
an electric leaf blower available
for your landscaper or provide
an extra battery for their use.
NEIGHBORS: Download the
flyer online to help inform
your neighbors of the
City’s requirements.
Share this
information with
neighbors who
may not be aware.
Make an electric leaf
blower available for your
landscaper or extra
battery for their use.
Submit or report a call
using the Palo Alto 311
app with the day of the
week and time of violation.
cityofpaloalto.org/LeafBlowers
Contact Code Enforcement: (650) 329-2605
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Flyer
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CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Administrative Services
Meeting Date: February 6, 2023
TITLE
Review and Accept the FY 2024 - FY 2033 Long Range Financial Forecast (LRFF) and FY 2024
Budget Development Guidelines
RECOMMENDATION
The Finance Committee and staff recommend that the City Council accept the Fiscal Year (FY)
2024 to 2033 General Fund Long Range Financial Forecast Revised Base Case and annual Budget
Development Guidelines (Attachment B) and direct staff to use this forecast as the starting point
for the initiation of the FY 2024 budget process.
EXECUTIVE SUMMARY
The FY 2024 - 2033 Long Range Financial Forecast (LRFF) was reviewed with the Finance
Committee on December 6, 2022 (Attachment A) along with the annual Budget Development
Guidelines (Attachment B) and were unanimously approved by the Committee. This report 1)
summarizes the key discussion points with the Finance Committee, 2) provides a revised Base
Case Forecast in alignment with cost estimates of City and labor group positions on economic
proposals1, and 3) provides preliminary information regarding Utility rates which may impact
development of the FY 2024 Budget.
The Revised Base Case General Fund forecast reflects projected gaps in the first four years (FY
2024-FY 2027) with expenses out pacing revenues resulting in deficits ranging between $500,000
to $5.8 million annually. Staff expect that a combination of one-time funds and the eventual
collection of new Business tax revenues from the passage of Measure K will assist in resolving
these deficits.
Per City Council policy, items that are unanimously approved by the Finance Committee are
placed as a consent agenda item for the City Council. However, staff and the Committee have
placed this item on the City Council’s action agenda for deliberation of the full Council in
1 Subsequent to the Finance Committee review in December 2022, the City has reached tentative agreement with
two labor groups, on this same February 6, 2023 agenda for approval, and adopted a new management and
professional compensation plan.
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acknowledgement of the importance for financial planning in the continued varied economic
conditions.
BACKGROUND
The LRFF is a preliminary ten-year forecast based on the most current information available,
actual revenues for FY 2022, and projected results through FY 2023 at the point in time of release.
General Fund expenditures are based on current City Council approved service levels (Base Case)
compared to projected revenues over the next ten years. This Forecast allows staff and City
Council to look at both the short-term and long-term financial status of current service levels in
the General Fund to inform daily policy decisions and evaluate long-term goals and ongoing
challenges.
•Base Case Long Range General Fund forecast (as of December 2022) projects a surplus of
$0.4 million in FY 2024, followed by a $3.4 million gap in FY 2025 and a $2.6 million gap
in FY 2026, with small but increasing surpluses in FY 2027 through FY 2033. This forecast
maintains current service levels approved in FY 2023 and should be used for planning
purposes to assist in gauging effects of major policy interventions against a likely “status
quo” version of the future.
•Alternate forecast scenario that reflects a more severe recession. Compared to the Base
Case, this scenario increases the General Fund gap over the next ten years. FY 2024
changes from a surplus to a gap of $3.5 million, and revenues are not anticipated to be
able to fund the annual expenditures until FY 2029.
•Alternate forecast that reflects estimated funding from Measure K (new business tax) and
the impacts on the General Fund over the next ten years reflects a surplus in FY 2024 of
$1.1 million, a gap in FY 2025 of $1.9 million, and surpluses in FY 2026 through FY 2033.
These alternate forecasts were done separately to show the impacts of each scenario in
isolation; however, aspects of both alternate forecasts may occur in conjunction in the
future.
As the COVID-19 pandemic is waning, economic uncertainty has heightened the intensity of
financial forecasting and the budget development process including the need for complex
problem-solving within an engaged public process across a wide range of issues. There are also
several issues across the City continuing to impact the ability to transition beyond impacts of the
pandemic including staff turnover, recruitment and retention, supply chain issues, and inflation
that continue to increase costs across all aspects of the City. Development of the FY 2024 budget
and planning for the subsequent years will balance the increased service level needs of the
community with the financial resources projected. Ongoing revenues are unable to keep pace
with expenses in the short term.
Based on this forecast, it is anticipated that the prioritization of spending and the use of one-time
surplus funding from FY 2022 to cover short-term gaps over the next several years will be
necessary to ensure continued financial stability. More detailed guidelines or Budget Policies to
inform the development of the FY 2024 budget are discussed in Attachment B.
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ANALYSIS
This report
1) Summarizes the key discussion points with the Finance Committee,
2) Provides a revised Base Case Forecast in alignment with cost estimates of City and labor
group positions on economic proposals, and
3) Provides preliminary information regarding Utility rates which may impact development
of the FY 2024 Budget.
Finance Committee December 2022 Review and Discussion
As part of the Finance Committee’s review of the LRFF, there were no requests for additional
information or changes to the report for the Council’s review; however, a few topics were
highlighted as part of the discussion. Staff has compiled these items below.
Economic Development:
Potential for ongoing remote work and reduced office occupancy to impact major tax
revenues, and lead to an extended local economic shift rather than a short term “blip”.
Permanent parklet program should be evaluated as a revenue source, or at minimum,
cost neutral.
Evaluate the potential for revenue from a new Fiber Utility.
Major Projects/Council Priorities:
Repair of the Cubberley Gym should be prioritized as it impacts many children citywide.
A majority of work related to the Sustainability and Climate Action Plan (S/CAP) is
currently funded in the Utility Funds; however, as work continues to expand, this will
become a shared responsibility across other funds.
Labor Costs and Staffing Analysis:
As the biggest source of costs to the City, ensure that salaries and benefits such as
pensions and medical plans are managed carefully, as outlined in the pension and retiree
medical policies recently reviewed and updated by the Finance Committee.
Quantifying service reinvestments should be evaluated in a manner other than just
comparing headcount pre and post pandemic.
Revised Base Case Fiscal Year (FY) 2024 to 2033 General Fund Long Range Financial Forecast
Subsequent to the Finance Committees review of the LRFF, a new agreement with Management
Employees has been approved by the City Council at the December 19, 2022 meeting, and
agreements with the International Association of Fire Fighters (IAFF) and Service Employees
International Union (SEIU) are scheduled for City Council approval on February 6, 2023. This
report includes a revised LRFF forecast that aligns cost estimates with this updated status of City
and labor group positions on economic proposals.
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Consistent with prior Council direction in previous long range financial forecasts, a general wage
adjustment of 2.0% was included for all years of the forecast along with a level of reserve to reach
a target market placement for employee compensation in new labor agreements as a forecasting
assumption, not as a commitment to future negotiations.
Staff will continue to refine these estimates during the FY 2024 annual budget process as labor
agreements are finalized and more information is gathered on revenue trends. This revised Base
Case, revises the LRFF reflecting gaps in the first four years, FY 2024 through FY 2027.
Table 1: Summary of Net One-Time Surplus/(Gap) – Base Case vs. Revised
Net Surplus/(Gap)FY23 (Est.)FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Base Case $0-6.0M $0.4M ($3.4M)($2.6M)$1.5M $2.9M
REVISED Base Case $0-4.7M ($0.5M)($5.8M)($5.1M)($1.0M)$0.3M
Table 2: REVISED Base Case, FY 2024 -2033 Long Range Financial Forecast
Preliminary Utility Rate Forecasts
Current economic uncertainty and commodity prices are expected to result in recommended
increases to the utility rates for FY 2024. New information, not available when the LRFF was
published in late November, is being provided for review and a preliminary preview of rates
expected to be discussed as part of the FY 2024 budget process. These rates will impact
customers residential and commercial, including the City itself as a consumer of these
commodities. This information can be seen in Attachment C. At the time of this preliminary
review of estimated rate forecasts, the state of California has seen unprecedented rainfall and
flooding. Staff are reviewing the impacts of this storm on rate forecasts and will ensure this is
factored into the recommended rate changes for FY 2024. These recommendations are
scheduled to be reviewed in March – May 2023 by the Finance Committee and adopted the City
Council in June 2023.
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FISCAL/RESOURCE IMPACT
Financial implications from this report and input from the City Council will be considered in the
City Manager’s development of the Fiscal Year 2024 budget.
Upcoming milestones related to the City’s fiscal standing and the FY 2024 Budget Process include:
February 13 Council Meeting – FY 2023 Mid-Year Budget Review and Second Quarter
Fiscal Analysis Report
March/April Utilities Advisory Commission (UAC) and Finance Committee Meetings – Five
Year Utility Financial Plans and FY 2024 Rate Recommendations
May 1 Council Meeting – FY 2024 Proposed Operating and Capital Budgets Published
May Finance Committee Hearings – FY 2024 Proposed Budget Review, including Utility
Rates, Municipal Fees, and Five-Year Capital Improvement Plan
June Finance Committee Meeting – FY 2023 Third Quarter Fiscal Analysis Report
June 19 Council Meeting – Adoption of the FY 2024 Operating and Capital Budgets, the
Utility Rates, and Municipal Fees
STAKEHOLDER ENGAGEMENT
The preliminary forecast for FY 2024 represents the beginning of the fiscal year 2024 budget
development process. As in previous years, the City Council discussion of LRFF will provide
guidance to staff in the budget development process. It is anticipated that conversations with
City Council and the community will occur through public budget hearings in Spring 2023,
according to the standard budget adoption process.
ENVIRONMENTAL REVIEW
This report is not a project for the purposes of the California Environmental Quality Act.
Environmental review is not required.
ATTACHMENTS
Attachment A: FY 2024-2033 Long Range Financial Report (LRFF), CMR 14629
Attachment B: FY 2024 Budget Development Guidelines
Attachment C: Preliminary Utility Rates Forecast
APPROVED BY:
Kiely Nose, Assistant City Manager
Report #: 2301-0753
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City of Palo Alto (ID # 14629)
Finance Committee Staff Report
Meeting Date: 12/6/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Review and Forward the FY 2024 - 2033 Long Range Financial Forecast
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that the Finance Committee review and recommend that the City Council
accept the General Fund Long Range Financial Forecast (LRFF) for Fiscal Year 2024-2033 and the
FY 2024 annual Budget Development Guiding Principles (Attachment A) and direct staff to use
this forecast as the starting point for the initiation of the FY 2024 budget process.
Executive Summary
Annually, the City presents a ten-year General Fund Long Range Financial Forecast (LRFF) in
December that marks the beginning of the annual budget process. This preliminary forecast is
based on the most current information available, actual revenues for FY 2022, and projected
results through FY 2023 at the point in time of release. General Fund expenditures are based on
current City Council approved service levels compared to projected revenues over the next
year.
The Base Case Long Range General Fund forecast projects a surplus of $0.4 million in FY
2024, followed by a $3.4 million gap in FY 2025 and a $2.6 million gap in FY 2026, with
small but increasing surpluses in FY 2027 through FY 2033. This forecast maintains
current service levels approved in FY 2023 and should be used for planning purposes to
assist in gauging effects of major policy interventions against a likely “status quo”
version of the future.
Staff modeled an alternate forecast scenario that reflects a more severe recession.
Compared to the Base Case, this scenario increases the General Fund gap over the next
ten years. FY 2024 changes from a surplus to a gap of $3.5 million, and revenues are not
anticipated to be able to fund the annual expenditures until FY 2029.
Staff modeled an alternate forecast that reflects estimated funding from Measure K
and the impacts on the General Fund over the next ten years reflects a surplus in FY
2024 of $1.1 million, a gap in FY 2025 of $1.9 million, and surpluses in FY 2026 through
FY 2033. These alternate forecasts were done separately to show the impacts of each
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scenario in isolation; however, aspects of both alternate forecasts may occur in
conjunction in the future.
As the COVID-19 pandemic is waning, new economic challenges are emerging such as monetary
policy tightening actions by the US Federal Reserve to tame persistently high inflation and
increasing geopolitical risks which may lead the United States into a recessionary period. This
economic uncertainty has heightened the int ensity of financial forecasting and budget
development process. New analyses and data generation demands require deep dives into
complex problem-solving within an engaged public process across a wide range of issues. These
forecast figures present staff with the challenge of prioritizing the growing needs of the City
with the fiscal sustainability of these needs.
Locally, based on current election data, staff anticipate that both Measure L and K will be
successful in gaining voter approval. Measure L, affirming the ongoing Equity Transfer from the
Gas Utility Fund is included in the Base Case scenario. Measure K, approval of a new Business
Tax, is not assumed in this LRFF as part of the Base Case scenario; a resolution for intended use
of funding has been earmarked for investments in public safety, transportation and train
crossing safety, and affordable housing and unhoused support.
There are several issues across the City continuing to impact the ability to transition beyond
impacts of the pandemic including staff turnover, recruitment and retention, and supply chain
issues and inflation that continue to increase costs across all aspects of the City. Development
of the FY 2024 budget and planning for the subsequent years outlined in the forecast will need
to be done strategically over the next several months in order to balance the increased service
level needs of the community with the financial resources currently projected. With these
variables, ongoing revenues are unable to keep pace with expenses in the short term.
City staff will continue to review and refine these projections to establish the FY 2024 budget
and use this forecast to begin internal planning for budget balancing solutions. Based on this
forecast, it is anticipated that the prioritization of spending and the use of one-time surplus
funding from FY 2022 to cover short-term gaps over the next several years will be necessary to
ensure continued financial stability. More detailed guidelines or Budget Policies to inform the
development of the FY 2024 budget are discussed at the end of this document (Attachment A).
Included in this report and subsequent documents are the following:
- The Economy: discussion of the current financial climate of the United States to the
local economy of the City of Palo Alto (details can be found in Attachment B)
- Summary Long Range Financial Forecast including Revenue and Expense assumptions in
FY 2024-2033 (details can be found in attachment C and D)
o Financial status of the General Fund as of the FY 2023 Adopted B udget
o Brief discussion of FY 2022 surplus funding
o Updated FY 2023 revenue assumptions based on current projections
- FY 2024 Budget Development Policies to inform the Budget process (Attachment A)
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- Alternate scenarios to the base case forecast to demonstrate financial impacts to the
City from:
o Impacts from a moderate recession
o Impacts from the passage of Measure K
Background
Annually the Office of Management and Budget produces a ten-year General Fund Long Range
Financial Forecast (LRFF). The LRFF reflects staff’s best estimates on the projected revenues and
expenditures over the next ten years based on the information that is currently available. It is
important to note that the LRFF is a planning document and is separate and distinct from the
development of the City’s annual Operating and Capital Budgets. There are assumptions and
parameters modeled in the LRFF, but these assumptions are revised and refined as more
information becomes available through the budget development process.
The LRFF contains a comprehensive review of the costs to provide current City Council
approved service levels, including current contracts, updates to salaries and benefits based on
the current population of employees, and the current labor contracts in effect. The LRFF also
reviews the status of the current economy and various economically sensitive revenues such as
Sales Tax, Documentary Transfer Tax, Property Tax, and Transient Occupancy Tax to explain key
trends in those areas. This Forecast allows staff and City Council to look at both the short-term
and long-term financial status of current service levels in the General Fund to inform daily
policy decisions and evaluate long-term goals and ongoing challenges.
The Economy
U.S. workers and consumers have shown great resiliency throughout the pandemic, energy cost
spikes, geopolitical uncertainty, and high inflation. National, state, regional, and local economic
indicators are in transition; the economy exited 2021 in overdrive, but that growth combined
with global supply chain constraints has pushed inflation higher than expected. The federal
reserve began raising the fed funds interest rate in March 2022 and is expected to continue in
2023 which is intended to tame inflation, but as of the writing of this report, progress is slower
than desired. This has begun to and is predicted to cool the economy and result in a rise in
unemployment. The federal reserve’s ability to balance the objectives of fighting inflation while
maintaining employment and GDP growth will be challenging.
The local economy continues to show strong performance in the latter half of the calendar year
2022 though signs of “headwinds” are growing that are likely to stem economic growth.
Additional details on economic statistics such as Gross Domestic Product (GDP) and Consumer
Price Index (CPI) can be found in Attachment B in greater length.
Discussion
Palo Alto serves a diverse community with a broad range of unique services that adds to the
complexity of managing a balanced budget and healthy fiscal outlook. This annual General
Fund Long Range Financial Forecast is coupled with annual rate forecasts for the City’s various
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enterprise activities such as electric, gas, and water utility services provided to the community.
As the COVID-19 pandemic is waning, new economic challenges are emerging which may lead
the United States into a recessionary period. This economic uncertainty has heightened the
intensity of financial forecasting and budget development process and continues the rigger
previously demonstrated by the Council and staff through the challenges of the pandemic.
These forecast figures present staff with the challenge of prioritizing the growing needs of the
City with the fiscal sustainability of these needs.
The FY 2024-2033 ‘Base Case’ revenue and expense assumptions include updates on the status
of the general fund as of the FY 2023 Adopted Budget, the FY 2022 fiscal year end, and current
FY 2023 projected assumptions. As with all forecasts, there is uncertainty regarding the revenue
and expenditure estimates contained in this document. This forecast assumes a mild 18-month
recession at the beginning of the ten-year period. Major tax revenues continue to rebound
from prior year levels, reserves for economically sensitive revenues have been elim inated as
programs modified or canceled during the pandemic have returned, and investments in Capital
projects are restored to pre-pandemic levels. One-time resources that have boosted the City’s
financial outlook in prior years: Coronavirus Aid, Relief, and Economic Securities Act (CARES Act)
and American Rescue Plan Act (ARPA) have been allocated in full with no funds included in FY
2024.
Base Case
Table 1 displays the projected General Fund revenues and expenditures over ten years and the
cumulative net operating margin.
- The operating margin reflects the variance between the projected General Fund
revenues and expenditures for each year of the forecast or the annual surplus or
shortfall.
- The net operating margin is presented on a one-time basis, as the annual surplus or
shortfall for a given year, and on an incremental basis.
The incremental forecast assumes that each shortfall is addressed completely with ongoing
solutions in the year it appears and that each surplus is completely expended with ongoin g
expenditures. It is the City’s goal to remain in balance on an ongoing basis, so the incremental
figure is useful to illustrate the additional surplus and/or shortfall attributed to a particular
fiscal year. To the extent a shortfall is not resolved, or a surplus is not expended on an ongoing
basis, it is important to understand that the remaining budget gap or surplus will remain and be
pushed to the following year.
The Base Case financial forecast projects a surplus of $0.4 million in FY 2024, followed by a $3.4
million shortfall in FY 2025, a $2.6 million shortfall in FY 2026, and increasing surpluses
thereafter. Based on these assumptions, the cumulative net operating margin, or ongoing
surplus, during the forecast period is a surplus of $33.9 million .
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TABLE 1: FY 2024 – 2033 Long Range Financial Forecast (Base Case)
TABLE 2: FY 2024 – 2033 Long Range Financial Forecast Net Operating Margin (Base Case)
Revenue Assumptions
The FY 2022 Annual Comprehensive Financial Report (ACFR), scheduled for review by the
Finance Committee on November 29, 2022, reported higher annual earnings for general fund
revenues as compared to the prior year; major tax revenues experienced faster recovery paces
in the last two quarters of the fiscal year (CMR 146321). Major tax revenues generated $137.5
million in FY 2022, an increase of $20.7 million or 17.7% over the FY 2021 levels of $116.8
million. Staff and the Council anticipated a portion of this increase in revenues and discussed
$14 million during the May 2022 budget discussions for allocation in FY 2023. This recovery
trend may continue as discussed in the First Quarter (Q1) FY 2023 Financial Report, scheduled
for review by the Finance Committee on December 6, 2022; several categories appear to be
tracking similarly in FY 2023 to FY 2022 (CMR 14630). The current timing and potential for
recession makes it difficult to determine if these trends will continue in the near term. In FY
2023, Staff estimates a range of $238 to $244 million in total revenues, reflecting up to $6
1 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/finance-
committee/2022/20221129/20221129pfcsm-linked.pdf
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million or 2.5% above adopted budget levels. The higher end of this projection assumes that
revenues will continue a similar positive trend as recent quarters. However, actual results will
vary depending on the timing and magnitude of recessionary impacts in the near term.
A summary of revenue assumptions are discussed here, extensive information regarding each
revenue category can be found in Attachment C.
- Tax revenues constitute nearly 60% of General Fund resources. In FY 2024, the forecast
projects an $11.4 million or 8.4% increase from FY 2023 adopted levels ($135.1 million
to $146.5 million). This increase is primarily attributed to higher anticipated receipts for
Sales Tax, Property Tax, and Transient Occupancy Tax (TOT) categories.
o Sales Taxes is anticipated to increase $0.7 million or 2.2% from FY 2023 ($32.6
million to $33.3 million). Revenue in this category is experiencing growth;
however, is not anticipated to reach pre-pandemic levels until FY 2026.
o Property Taxes make up the largest source of the General Fund’s revenue,
approximately 25%. In FY 2024, this revenue is anticipated to increase $3.9
million or 6.5% from FY 2023 ($58.9 million to $63.7 million). During economic
downturns, impacts to property tax occur a year later, however, due to robust
residential and commercial property sales this source has continued to grow
annually.
o Transient Occupancy Taxes are impacted by business and other leisure/non-
leisure travel and experienced significant reductions in the past few years due t o
a number of factors resulting from the pandemic. Though this revenue remains
below pre-pandemic actuals, the opening of the two Marriott hotels in FY 2021
and the re-opening of multiple hotels in FY 2021 and FY 2022 were positive
developments for this tax revenue. In FY 2024, this revenue is anticipated to
increase $6.8 million or 37.3% from FY 2023 ($18.2 million to $25.0 million);
however, this category is not anticipated to reach pre-pandemic levels until FY
2026.
- The forecast for non-tax revenues projects a $1.0 million or 1.2% increase in FY 2024
from FY 2023 adopted levels. This increase is primarily attributable to the alignment of
revenue estimates for the Stanford agreement to provide Fire and Dispatch services,
and the restoration of several programs and services that were modified due to public
health orders, mainly in public safety and community services.
- One-time resources that have boosted the City’s financial outlook in prior years have
been eliminated:
o The City received $13.7 million in American Rescue Plan Act (ARPA) funding that
the Council, per the legislation, designated to address the significant revenue
loss resulting from the pandemic;
o $294,000 in Coronavirus Aid, Relief, and Economic Securities Act (CARES Act)
funding to provide rental assistance and support safe parking and COVID-19
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testing programs; and
o $3.5 million in federal funds in FY 2022 through the Staffing For Adequate Fire
and Emergency Response (SAFER) Grant Program. This funding offset the hiring
costs of 5.0 firefighters for a three-year period and is fully expended in FY 2025.
The changes by revenue category, including dates in which revenues are anticipated to reach
pre-pandemic levels, are discussed in greater detail below.
TABLE 3: General Fund Revenue Forecast
Revenue & Other Sources
Actual
2022
Adopted
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
CAGR 10
Years
CAGR 5
Years
Sales Taxes 32,705 32,580 33,288 34,953 37,085 39,570 41,292 43,080 45,096 47,301 49,628 52,085 4.6%2.2%
Property Taxes 59,353 59,770 63,669 67,305 71,224 75,448 79,950 84,570 89,238 94,334 99,937 106,164 5.2%2.3%
Transient Occupancy Tax
General Purpose 8,828 8,472 14,429 15,255 16,059 16,549 17,181 17,894 18,766 19,710 20,740 21,829 4.2%1.8%
Infrastructure 8,118 9,727 10,567 11,173 11,762 12,121 12,583 13,106 13,744 14,435 15,190 15,987 4.2%1.8%
Documentary Transfer Tax 11,990 7,217 6,867 7,029 7,200 7,381 7,574 7,849 8,152 8,452 8,755 9,066 2.8%1.0%
Utility Users Tax 15,599 15,579 15,878 16,967 18,359 19,133 18,460 20,488 21,215 21,943 22,706 23,498 4.0%1.5%
Other Taxes and Fines 893 1,784 1,784 1,784 1,784 1,784 1,784 1,784 1,784 1,784 1,784 1,784 0.0%0.0%
Subtotal: Taxes 137,486 135,129 146,483 154,467 163,473 171,986 178,824 188,771 197,995 207,959 218,740 230,413 4.6%2.0%
Charges for Services 28,671 30,271 33,355 33,648 33,847 33,952 34,040 34,225 34,379 34,563 34,622 34,744 0.4%0.2%
Permits and Licenses 9,111 9,764 11,454 11,928 12,154 12,266 12,456 12,743 13,020 13,316 13,161 13,274 1.5%0.8%
Return on Investments 1,325 1,066 1,492 1,528 1,574 1,622 1,671 1,734 1,805 1,881 1,960 2,043 3.2%1.1%
Rental Income 13,681 15,572 16,447 17,303 18,034 18,635 19,151 19,682 20,228 20,792 21,372 21,968 2.9%1.5%
From Other Agencies 9,232 7,526 1,281 998 266 266 266 266 266 266 266 266 -14.5%-14.5%
Charges to Other Funds 13,980 13,690 14,460 14,810 14,989 15,091 15,398 15,668 15,963 16,261 16,330 16,411 1.3%0.6%
Other Revenue 2,447 2,201 2,592 2,615 2,630 2,646 2,662 2,679 2,696 2,712 2,730 2,748 0.6%0.3%
Total Non-Tax Revenue 78,447 80,090 81,080 82,830 83,495 84,477 85,643 86,996 88,357 89,791 90,441 91,454 1.2%0.5%
Operating Transfers-In 22,802 22,532 23,614 24,374 25,097 25,740 26,204 26,709 27,143 27,802 28,508 29,233 2.2%1.0%
BSR Contribution (One-Time)9,670
Total Source of Funds $238,735 $247,421 $251,177 $261,671 $272,065 $282,203 $290,671 $302,477 $313,495 $325,552 $337,689 $351,101
TABLE 4: General Fund Revenue Forecast Year to Year Percentage Change
Revenue & Other Sources
Actual
2022
Adopted
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Sales Taxes -0.4%2.2%5.0%6.1%6.7%4.4%4.3%4.7%4.9%4.9%5.0%
Property Taxes 0.7%6.5%5.7%5.8%5.9%6.0%5.8%5.5%5.7%5.9%6.2%
Transient Occupancy Tax
General Purpose -4.0%70.3%5.7%5.3%3.1%3.8%4.1%4.9%5.0%5.2%5.3%
Infrastructure 19.8%8.6%5.7%5.3%3.1%3.8%4.2%4.9%5.0%5.2%5.2%
Documentary Transfer Tax -39.8%-4.8%2.4%2.4%2.5%2.6%3.6%3.9%3.7%3.6%3.6%
Utility Users Tax -0.1%1.9%6.9%8.2%4.2%-3.5%11.0%3.5%3.4%3.5%3.5%
Other Taxes and Fines 99.7%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Subtotal: Taxes -1.7%8.4%5.5%5.8%5.2%4.0%5.6%4.9%5.0%5.2%5.3%
Charges for Services 5.6%10.2%0.9%0.6%0.3%0.3%0.5%0.4%0.5%0.2%0.4%
Permits and Licenses 7.2%17.3%4.1%1.9%0.9%1.6%2.3%2.2%2.3%-1.2%0.9%
Return on Investments -19.6%39.9%2.4%3.0%3.0%3.0%3.8%4.1%4.2%4.2%4.2%
Rental Income 13.8%5.6%5.2%4.2%3.3%2.8%2.8%2.8%2.8%2.8%2.8%
From Other Agencies -18.5%-83.0%-22.1%-73.4%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Charges to Other Funds -2.1%5.6%2.4%1.2%0.7%2.0%1.8%1.9%1.9%0.4%0.5%
Other Revenue -10.1%17.8%0.9%0.6%0.6%0.6%0.6%0.6%0.6%0.7%0.7%
Total Non-Tax Revenue 2.1%1.2%2.2%0.8%1.2%1.4%1.6%1.6%1.6%0.7%1.1%
Operating Transfers-In -1.2%4.8%3.2%3.0%2.6%1.8%1.9%1.6%2.4%2.5%2.5%
BSR Contribution (One-Time)-100.0%
Total Source of Funds 3.6%1.5%4.2%4.0%3.7%3.0%4.1%3.6%3.8%3.7%4.0%
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 12 Packet Pg. 384 of 473
City of Palo Alto Page 8
TABLE 5: City of Palo Alto Major General Fund Revenues
Expense Assumptions
As part of developing the FY 2024-2033 Forecast expenditure budget, the General Fund
expense categories have been adjusted by removing FY 2023 Adopted Budget one -time
expenses and updating major cost elements such as salary and benefits costs. The table below
displays the expense forecast and when compared to the FY 2023 Adopted Budget, growth of
1.4% is expected in FY 2024. The small overall annual growth is due to the elimination of large
one-time reserves in FY 2023 that offset the increase in expenses in other categories such as
Salary and Benefits and Transfers to Infrastructure.
A summary of expense assumptions are discussed here, extensive information regarding each
expense category can be found in Attachment D.
- Salary and Benefits are projected to increase $11.3 million or 7.6% from the FY 2023
($148.4 million to $159.7 million). This is primarily attributable to increases in salaries
($6.1 million or 7.7%) and pension costs ($4.1 million or 10.5%). A general wage
adjustment of 2.0% is included for all employees starting in either January 2023 or July
2023 for all years of the forecast since no MOA’s would be in effect at that time. A level
of reserve to reach a target market placement for employee compensation in new labor
agreements, as directed by the City Council is also assumed beginning in FY 2023.
- Long Term contributions to pension and other post-employment benefits and capital
investments are being phased through the first three to five years of the forecast:
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 13 Packet Pg. 385 of 473
City of Palo Alto Page 9
o Pension 115 Trust contributions reflect City Council approved discount rate from
6.2% to 5.3% over two years; FY 2023 is a transitio nal year in which six months or
the equivalent of approximately 5.8% is budgeted and the full transition in FY
2024 ($12.2 million ($7.2 million in the General Fund) in supplemental
contributions is assumed in FY 2024).
o California Employers’ Retiree Benefit Trust (CERBT) Fund for Retiree medical
liabilities contributions reflect a 5.75% discount rate (6.25% assumption), and
shortened amortization (from 22 to 15 years). Through FY 2023, it is expected
that $8.0 million in supplemental principal contributions will be made to the
CERBT Trust. The FY 2024 Budget estimates $16.4 million ($10.5 million in the
General Fund) for ADC, an approximate $0.5 million or 2.9% increase from FY
2023 levels of $15.9 million ($9.9 million in the General Fund).
o Capital Infrastructure transfers reflect the goal established as part of the 2022-
2026 Capital Improvement Plan (CIP) to restore the base portion of this transfer
to pre-pandemic levels by FY 2026. As the local economy continues to recover
from the COVID-19 pandemic, estimated transfers from TOT revenues in FY 2024
are currently projected to increase to $10.5 million and the base transfer to
increase to $10.8 million for a total $21.3 million transfer to the Capital
Improvement Fund.
- Inflationary assumptions in this long range reflect the record inflation being seen at
present, in FY 2024 and FY 2025, a 5% annual inflation is assumed, while in the outer
years FY 2026 ongoing it is brought to the historical average of 3%.
- Previously committed investments are included in this forecast including but not limited
to the continuation of the two year restoration of key services as adopted in the FY 2023
Budget. These services are assumed to be ongoing in this forecast in alignment with the
expected voter approval of measure L and affirmation of current revenues to the
General Fund. This LRFF includes the City’s committed investment of $7.0 million in
operating expenses for the partnership with LifeMoves and Project Homekey site
services ($1.0 million annually which started in FY 2023 and is programmed through FY
2029).
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 14 Packet Pg. 386 of 473
City of Palo Alto Page 10
TABLE 6: General Fund Expense Forecast and Year to Year Percentage Change
Expenditures & Other Uses
Actual
2022
Adopted
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
CAGR
10 Years
CAGR 5
Years
Salary 71,145 79,732 85,869 90,166 92,806 95,320 97,394 99,341 101,269 103,198 105,127 107,056 3.0%1.3%
Benefits 61,531 68,636 73,780 77,229 79,099 80,111 82,477 86,269 87,134 88,371 87,251 87,425 2.4%1.1%
Subtotal: Salary & Benefits 132,676 148,368 159,649 167,395 171,905 175,431 179,871 185,610 188,403 191,569 192,378 194,481 2.7%1.2%
Contract Services 20,844 24,194 23,921 25,375 25,863 26,555 27,106 27,931 28,461 29,330 29,834 30,688 2.4%1.3%
Supplies & Material 2,508 3,205 3,270 3,426 3,519 3,612 3,705 3,798 3,891 3,984 4,077 4,170 2.7%1.3%
General Expense 3,174 21,765 8,561 8,745 8,835 8,938 9,042 9,161 8,252 8,357 8,463 8,576 -8.9%0.5%
Rents & Leases 453 1,333 1,368 1,405 1,443 1,482 1,522 1,564 1,606 1,649 1,694 1,741 2.7%1.1%
Facilities & Equipment 538 480 450 471 484 497 510 523 536 549 562 575 1.8%1.3%
Allocated Charges 19,647 22,714 24,744 25,741 26,454 27,121 27,860 28,623 29,403 30,227 31,072 31,939 3.5%1.2%
Total Non Sal/Ben Before Transfers 47,164 73,691 62,314 65,163 66,598 68,205 69,746 71,600 72,149 74,097 75,701 77,689 0.5%1.1%
Operating Transfers-Out 5,498 4,962 4,643 4,745 4,854 4,959 5,072 5,188 5,302 5,423 5,547 5,699 1.4%0.9%
Transfer to Infrastructure - Base 4,506 10,673 13,640 16,607 19,575 20,009 20,523 21,053 21,599 22,161 22,740 23,336 8.1%4.2%
Transfer to Infrastructure - TOT 8,118 9,727 10,567 11,173 11,762 12,121 12,583 13,106 13,744 14,435 15,190 15,987 5.1%1.8%
Total Use of Funds 197,963 247,421 250,814 265,083 274,694 280,726 287,794 296,558 301,197 307,685 311,557 317,193 2.5%1.4%
Expenditures & Other Uses
Actual
2022
Adopted
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Salary 12.1%7.7%5.0%2.9%2.7%2.2%2.0%1.9%1.9%1.9%1.8%
Benefits 11.5%7.5%4.7%2.4%1.3%3.0%4.6%1.0%1.4%-1.3%0.2%
Subtotal: Salary & Benefits 11.8%7.6%4.9%2.7%2.1%2.5%3.2%1.5%1.7%0.4%1.1%
Contract Services 16.1%-1.1%6.1%1.9%2.7%2.1%3.0%1.9%3.1%1.7%2.9%
Supplies & Material 27.8%2.0%4.8%2.7%2.6%2.6%2.5%2.4%2.4%2.3%2.3%
General Expense 585.8%-60.7%2.2%1.0%1.2%1.2%1.3%-9.9%1.3%1.3%1.3%
Rents & Leases 194.1%2.7%2.7%2.7%2.7%2.7%2.7%2.7%2.7%2.7%2.8%
Facilities & Equipment -10.7%-6.2%4.7%2.8%2.7%2.6%2.5%2.5%2.4%2.4%2.3%
Allocated Charges 15.6%8.9%4.0%2.8%2.5%2.7%2.7%2.7%2.8%2.8%2.8%
Total Non Sal/Ben Before Transfers 56.2%-15.4%4.6%2.2%2.4%2.3%2.7%0.8%2.7%2.2%2.6%
Operating Transfers-Out -9.7%-6.4%2.2%2.3%2.2%2.3%2.3%2.2%2.3%2.3%2.7%
Transfer to Infrastructure - Base 136.8%27.8%21.8%17.9%2.2%2.6%2.6%2.6%2.6%2.6%2.6%
Transfer to Infrastructure - TOT 19.8%8.6%5.7%5.3%3.1%3.8%4.2%4.9%5.0%5.2%5.2%
Total Use of Funds 25.0%1.4%5.7%3.6%2.2%2.5%3.0%1.6%2.2%1.3%1.8%
Budget Stabilization Reserve
The City's Budget Stabilization Reserve (BSR) serves as the primary General Fund reserve. By
policy, the BSR is maintained in the range of 15 to 20% of General Fund operating expenditures,
with a target of 18.5%. Any reduction to the reserve below 15% requires City Council approval.
At the discretion of the City Manager, any BSR balance above 18.5% may be tran sferred to the
Infrastructure Reserve (IR) in the Capital Improvement Fund, and/or the City's Section 115
Pension Trust Fund, as outlined in the Pension Funding Policy. The BSR is used to fund
unanticipated one-time costs as opposed to ongoing or recurring operating expenditures;
ongoing revenue or expense trends are updated as part of the annual budget process to adjust
ongoing needs. The City's intent is to fund ongoing programs and services with ongoing dollars.
Maintaining the BSR at 18.5% also provides flexibility for the City to deal with unforeseen issues
that may arise. Furthermore, establishing, and following, sound fiscal reserve policies has been
a strong factor in the City being rated AAA by rating agencies.
Based on information reported in the FY 2022 Annual Comprehensive Financial Report (ACFR)
CMR 146322, the City’s current BSR balance is $59.8 million, approximately $14.2 million above
the 18.5% target of $45.6 million for FY 2023. Micro and macro-economic conditions are
adjusting daily, with rising inflation, changes in jobs, and recessionary trends creating significant
uncertainty. As the State of California Legislative Analyst Office (LAO) wrote in their annual
Fiscal Outlooks for California “Economic Conditions Weigh on Revenues, [the] bo oming
2 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/finance-
committee/2022/20221129/20221129pfcsm-linked.pdf
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 15 Packet Pg. 387 of 473
City of Palo Alto Page 11
economy has led to high inflation…efforts to tame inflation are slowing the economy…inflation
pressures remain, raising risk of recession…fiscal outlooks revenues balance competing risks.3”
As shown in the table below, there are recommended adjustmen ts in line with the City
Manager’s authority for transfer of excess BSR, adjusted for a recommendation to reserve
funds to safeguard the stability the City has strived to achieve in the recent year by re -
establishing an economic uncertainty reserve. Staff anticipates returning to Council in February
2023 with the FY 2023 Mid-Year Review and recommendations in alignment with the allocation
below for the appropriation of BSR funds above the 18.5% level. Staff do recommend a transfer
to the Infrastructure Reserve as inflationary costs are impacting capital project needs including
anticipated significant price increases in the Automated Parking Guidance Project, as well as a
need to provide safety improvements to critical assets such as the artificial turf playi ng fields.
These actions will leave the BSR at $45.8 million or $0.2 million above the 18.5% Council
recommended level.
TABLE 7: Budget Stabilization Reserve (BSR) Summary (in millions)
General Fund BSR Balance, June 30, 2022 $72,835
FY 2023 Approved Adjustments to the BSR Balance
FY 2023 Adopted Budget ($9,072)
FY 2023 Services Reinvestment ($3,700)
Downtown Streets Team (CMR 14526) ($167)
Reappropriations (CMR 14728) ($100)
Subtotal: Approved Adjustments to the BSR Balance ($13,039)
Subtotal: BSR Balance, After Approved Adjustments $59,796
Uses of the FY 2022 Surplus
FY 2023 RECOMMENDED Adjustments to the BSR Balance
(to be considered in FY 2023 Mid-Year Budget Review)
Reserve for Economic Uncertainty ($5,000)
Transfer to Section 115 Pension Trust Fund ($5,000)
Transfer to Infrastructure Reserve (IR) in the Capital Improvement
Fund
($4,000)
Subtotal: RECOMMENDED Adjustments to the BSR Balance ($14,000)
Current Projected FY 2022 BSR Level, (June 30, 2023) $45,796
This trend may continue as discussed in the First Quarter (Q1) FY 2023 Financial Report,
scheduled for review by the Finance Committee on December 6, 2022, in which several
categories appear to be exceeding budgeted levels in FY 2023 similar to FY 2022 (CMR 14630).
3 The 2023-24 Budget California’s Fiscal Outlook, California Legislative Analyst’s Office (LAO), November 16, 2022,
https://lao.ca.gov/Publications/Report/4646
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 16 Packet Pg. 388 of 473
City of Palo Alto Page 12
Although revenues have experienced growth in recent periods, the potential for recession
makes it difficult to determine if these trends will continue in the near term. This LRFF assumes
a mild 18-month recession at the beginning of the ten-year period and projects a range of $238
to $244 million in total revenues in FY 2023, reflecting up to $6 million or 2.5% above adopted
budget levels. The higher end of this projection assumes that revenues will continue a similar
positive trend as the summer period. Although staff may complete the 115 Pension Trust Fund
and Infrastructure Reserve transfer, staff recommend waiting until more data is available on
current trends to ensure staff and the Council are making an informed decision on how best to
position the city to ensure stability during these uncertain times. Staff expect that one-time
funding such as these will be critical to continue to mitigate impacts from a recession and
bridge the near term gaps seen in the first few years of this LRFF.
Assumptions NOT Included in Forecast
It should be noted that this forecast does not include several potential impacts to the FY 2024 -
2033 LRFF that are outlined below. These items are known projects or areas of investment that
are a priorities, but have not been fully developed in terms of costs and timelines. This is not
intended to be a comprehensive list nor in any priority order.
Project Homekey: On September 27, 2021 the City Council directed staff to apply for Project
Homekey funding in conjunction with LifeMoves to build an emergency shelter at the former
Los Altos Treatment Plant (LATP) site (CMR 135954). This project will rapidly deploy modular
housing to provide interim housing opportunities for homeless individuals and families in the
City of Palo Alto. The grant was awarded in Summer 2022 and the City is currently in
negotiations with local partners on operational roles to leverage local expertise and ensure high
quality services. This LRFF includes the City’s committed investment of $7.0 million in operating
expenses ($1.0 million annually which started in FY 2023 and is programmed through FY 2029);
however, with the actual timing of the funding still to be determined, and commitments from
other local partners negotiated, City costs for this project could fluctuate throughout the ten
year period.
Sustainability and Climate Action Plan (S/CAP): In early 2020, the City launched an update of the
Sustainability and Climate Action Plan (S/CAP) Framework to determine the goals and key
actions needed to meet its sustainability goals, including the goal of reducing greenhouse gas
(GHG) emissions to 80 percent below 1990 levels by 2030 (the “80x30” goal). As part of the FY
2022 Mid-Year Review (CMR 138015) and the 2023 Adopted Operating Budget6, Council
approved several actions to increase resources to support S/CAP needs. In October 2022 (CMR
4 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/city-council-
agendas-minutes/2021/09-september/20210927/210927accsm-amended-final.pdf
5 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/city-council-
agendas-minutes/2022/20220207/20220207pccsm-revised-final.pdf
6 https://www.cityofpaloalto.org/files/assets/public/administrative-services/city-budgets/fy2023-city-
budget/adopted-fy23/operating-budget_final-4.pdf
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 17 Packet Pg. 389 of 473
City of Palo Alto Page 13
147207), City Council accepted the updated S/CAP Goals and Key Actions and adopted a goal to
make the City carbon neutral by 2030. Staff commenced California Environmental Quality Act
(CEQA) evaluation of the S/CAP upon Council’s acceptance of the proposed S/CAP Goals and
Key Actions. The City is currently in the process of finalizing the Three-Year Work Plan, which
will be brought to Council for review and discussion in December 2022. The final S/CAP Report
will be brought to Council for acceptance in Spring 2023. As the S/CAP Work Plan and final
report are still in development, cost projections are not yet contemplated in the forecast.
Implementation is anticipated to require significant resources, including internal staffing and
consultant expertise.
Service reductions not restored to pre-pandemic levels:
The City made significant service reductions in FY 2021 and FY 2022 Adopted Budgets to align
expenses with losses of nearly $40 million in General Fund tax revenues due to economic
impacts resulting from the COVID-19 pandemic. During this time, many services were reduced
or eliminated across the organization and essential services were prioritized. Ultimately, th e
City’s General Fund workforce was reduced by 83 full-time staffing positions (76.50 FTE) and
107 part-time positions (26.18 FTE). In FY 2022, the City began to see gradual signs of
improvement and a positive economic outlook that supported initial reinve stments in the first
quarter (Q1) FY 2022 financial report (CMR 134398), FY 2022 Mid-Year Budget Review (CMR
138019), and the Staffing for Adequate Fire and Emergency Response (SAFER) grant (CMR
1364310). Further reinvestments were made in the FY 2023 Adopted Budget11 to restore
services that were previously reduced and provide resources to support priority initiatives. In
total, full-time staffing levels have increased by 61.85 FTE, from the pandemic low of 956.00
FTE to 1,017.85 FTE. This level of staffing remains below pre-pandemic levels of 1,034.85 FTE.
As of this LRFF, some services remain below pre-pandemic levels or have new and evolving
changes to meet community needs. These services will continue to be evaluated and proposals
brought forward in future budget processes for City Council consideration.
Significant code and ordinance updates: Updates to several significant programs, codes and
ordinances are expected to be necessary in the near future; some of these updates include:
Seismic Inventory Ordinance and Program Development, Historic Building Survey and
Ordinance Development, and Zoning Code Updates. Depending on future Council direction,
program implementation is anticipated to require significant resources, including internal staff
and outside consultant expertise.
7 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/city-council-
agendas-minutes/2022/20221003/20221003accsm-amended-presentations.pdf
8 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/city-council-
agendas-minutes/2021/10-october/20211025/20211025pccsm-linked-w-times.pdf
9 https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/city-council-
agendas-minutes/2022/20220207/20220207pccsm-revised-final.pdf
10 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2021/11-november/20211101pccs-amended.pdf
11 https://www.cityofpaloalto.org/files/assets/public/administrative-services/city-budgets/fy2023-city-
budget/adopted-fy23/operating-budget_final-4.pdf
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 18 Packet Pg. 390 of 473
City of Palo Alto Page 14
Fee and Organizational Studies: The Planning and Development Services (PDS) Department is in
the process of completing two studies, a fee study and an organizational study on the Fire
Prevention group. The purpose of the fee study is to align fees and revenues based on the
updated department structure to continue to meet Council approved cost recovery levels.
Ahead of the completion of the Department-wide study, an organizational study of the Fire
Prevention program will be completed to inform the fee study. Because the Fire Prevention
Program is currently housed in both the Fire and Planning and Development Services
departments, recommendations may be made to realign the program and resources. The
Library Department is also in the process of completing an organization study to assess staffing,
resource, and service levels with the goal of increasing open hours and providing additional
services to the community. Lastly, a citywide fee study needs to be completed periodically by
an outside consultant to ensure the City’s fees are in line with its cost recovery policies. This
study will be scheduled to be completed by FY 2024 and could update fees and associated
revenue assumptions in future year LRFF reports.
Labor negotiations: As of the timing of this report, all labor agreements are scheduled to expire
on December 31, 2022, with the exception of the Service Employees International Union Hourly
Unit (SEIU-H) agreement, which is extended through June 30, 2023. A general wage adjustment
of 2.0% is included for all years of the forecast since no agreements would be in effect at that
time. This is consistent with prior Council direction in previous long range financial forecasts to
use the 2.0% increase as a forecasting assumption, not as a commitment to future negotiations.
Additionally, this forecast includes a level of reserve to reach a target market placement for
employee compensation in new labor agreements, as directed by the City Council. Staff expects
to adjust these costs throughout the budget development process in accordance with market
studies and final contract terms.
Capital Infrastructure Plan: As referenced earlier, the June 2014 Council approved
Infrastructure Plan of $125.8 million in projects was based on construction and design costs
with data from 2012. As construction costs have increased and the City is required to pay
prevailing wages, the Infrastructure Plan’s funding status has shifted. The FY 2023 Adopted
Capital Budget anticipated that these projects would cost $261.8 million. Staff is working to
maintain these projects within the current budget; however, project costs can fluctuate based
on market conditions at the time of construction award.
Grade Separation: The grade separation project consists of the four at-grade crossings along the
Caltrain corridor in the City of Palo Alto located at Palo Alto Avenue, Churchill Drive, Meadow
Avenue, and Charleston Road. The City is working on conceptual alternative plans for the
selection of the preferred alternative at Churchill Avenue, Meadow Drive, and Charleston
Avenue crossings. In November of 2021, after performing a detailed review of the alternative
plans under consideration, Council selected the Partial Underpass Alternative as the preferred
alternative and designated Closure with Mitigation as a backup alternative for the Churchill
Avenue crossing. Council also directed staff to conduct additional studies and to refine
underpass alternatives by seeking input from stakeholders (Pedestrian and Bicycle Advisory
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Committee, Palo Alto Unified School District, and Stanford University). Such input could further
assist in narrowing down grade separation alternatives. On May 23, 2022 (CMR 1434112), the
City Council authorized an amendment to the consultant contract for performing these
additional tasks
Once preferred alternatives are selected, the next phase will include preparing preliminary
engineering and environmental documents for the three crossings. The Valley Transportation
Authority (VTA) 2016 Measure B Caltrain Grade Separation funding is available to the City for
additional studies and the next phases of the project which include preliminary engineering and
environmental review, right-of-way, design, and construction. In addition to this, on August 10,
2022 (Supplemental Memorandum AA113) the City Council adopted advisory spending
guidelines stating its intention to expend a portion of the revenues from Measure K on the rail
grade separation project.
The 2016 Measure B program tax revenue amounts to a total of $700 million in 2017 dollars for
all at-grade crossings in Santa Clara County, and the City anticipates allocation of 50% of said
funding. The VTA is currently programming these funds in two-year increments. Grade
Separation 2016 Measure B funding requires matching local funds as a result, additional
funding sources will need to be identified to perform this work in upcoming years (FY 2024 – FY
2033). The full funding needed to complete the grade crossings project is unknown at this time;
however, it is expected, that funding necessary to complete this work will exceed funding
currently identified for this project. Therefore, additional resources will need to be explored to
plan and fund these grade separations, including City staff pursuing additional funding throu gh
grant opportunities as they become available.
Parks Master Plan: The Parks Master Plan14 was finalized in 2017; however, when approved it
identified a need to develop a funding strategy and this is still in process. As such, this forecast
does not yet contemplate the necessary investments to fully execute this plan.
Racial Equity Work: The Race & Equity Framework and action plan was approved in June 2020
(CMR 1144115) and remaining funding of $0.5 million has been reappropriated to be available in
FY 2023. Staff is in the process of procuring consultants to assist with the City’s diversity, equity,
and inclusion efforts in engaging staff, the City Council, and Boards/Commissions. After this
initial work, further recommendations are anticipated to be for thcoming and will likely require
additional resources either for more consultant assistance and/or an ongoing in -house Equity
Officer position (discussed during the 2020 Ad Hoc Committee meetings). These
12 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2022/20220523/20220523pccsm-revised.pdf
13 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/at-places-
memo/20220810apmccsm.pdf
14 https://www.cityofpaloalto.org/files/assets/public/public-works/palo-alto-parks-master-plan.pdf
15 http://cityofpaloalto.org/civicax/filebank/documents/77273
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recommendations are anticipated to be brought forwar d in FY 2023 or as part of the FY 2024
budget process.
Palo Alto Animal Shelter operations and rebuild
In early 2019, the City entered into a public private partnership with Pets In Need (PIN) to
support the operation of the City’s animal shelter. Part of PIN’s operating proposal included
robust fundraising to rebuild the current shelter into a state-of-the-art animal shelter for the
City, with costs shared between the City and PIN. Since the initial agreement, PIN has indicated
that additional construction projects are required, which will increase capital project costs
significantly. Preliminary estimates are $3.0 to $4.0 million over existing commitments, and no
funding is identified for these costs. The City and PIN both have an interest in continuing t he
partnership and on February 14, 2022 City Council directed staff to proceed with negotiations
to update the service agreement (CMR 1395216).
City owned assets operated by non-profit organizations: This Forecast does not include any
additional capital or operating investments for the Avenidas Senior Center, the Ventura Child
Care Center, nor the Sea Scout Building. As costs around potential capital or operating
investments for these assets solidify, staff will return to City Council to address them as
appropriate. As part of the FY 2023 Adopted Capital Budget17 the City Council established the
Roth Building Rehabilitation Phase 1 capital project (PF -23001) directed a funding strategy for
the Roth Building Rehabilitation Project, which consists of utilizing $5.4 million from a variety of
funding sources including the Stanford University Medical Center (SUMC) Fund; library, parks,
and community center impact fees; grants from Santa Clara County; and donations from the
Palo Alto Museum. This funding strategy is included in the LRFF; however, if costs for
rehabilitating the Roth building increase, additional sources of funding would need to be
identified.
Cubberley Community Center Concept Plan: The City and PAUSD completed a co-design process
for a Cubberley Community Center Concept Plan in 2019; however, costs to implement the
concept plan are not assumed in this LRFF in excess of the dedicated Cubberley infrastructure
funding included in the existing agreement between the PAUSD and the City (discussed in the
Transfer to Infrastructure section of this report). The Concept Plan may require revision before
implementation as operational changes have occurred since its completion including execution
of a new lease between the City and PAUSD for the school district owned portion of Cubberley,
which commenced on July 1, 2020, and reduced the amount of building space leased to the City
(discussed in the General Expense - Cubberley Lease section of this report). On February 14,
2022 the Council directed Staff to pause p reparation of the Cubberley Concept Plan CEQA and
return with a work plan to include: i. exploring a land swap at Fletcher or financial framework
for acquiring available land; and ii. scoping the design process for Cubberley Community Center
16 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2022/20220214/20220214pccsm-amended-linked-final.pdf
17 https://www.cityofpaloalto.org/files/assets/public/administrative-services/city-budgets/fy2023-city-
budget/adopted-fy23/capital-budget_final-4-online-version.pdf
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that is City owned once the acreage is determined. Staff is communicating with PAUSD on the
potential to acquire additional land at Cubberley, including acreage amount. This could be
through a land swap, acquisition, or ground lease. Staff is also determining next steps for repair
of Cubberley Gyms A and B, which have been closed since February 2022 due to damage
caused by water line breaks.
Loans for special projects: From time to time the City’s General Fund will assist other City
operations with modest cash flow loan s to bridge fiscal years. For example, the City provided
over $3 million in loans to the Airport Fund as it worked to secure significant grant funding from
the Federal Aviation Administration (FAA) for capital improvement costs. As of FY 2020, the
Airport Fund began paying back the loan to the General Fund. Additions and other initiatives
funded in other funds may need financial support from the General Fund to ensure they are
fully implemented. In FY 2023 the Residential Preferential Parking (RPP) Fund rec eived a one-
time $0.4 million General Fund loan to remain solvent while continuing operations given the
sustained drop in parking demand during the pandemic. Additional loans from the General
Fund are not assumed in this forecast.
Legislative Updates: Various actions at the state and federal level that could impact the City of
Palo Alto have not been incorporated into this forecast due to the changing context and
uncertainty of the quantitative impacts of potential legislative changes. As the potential
impacts of various legislative initiatives are clarified, appropriate adjustments will be identified
and brought forward as part of future budget development cycles.
Tax revenue alignment with updated Comprehensive Plan: The 2030 Comprehensive Plan was
adopted in FY 2018, including the potential fiscal impact of various land use scenarios. The fiscal
impact of this plan and various land use scenarios are not factored into this forecast.
Aging or Noncompliant Infrastructure: The City maintains indoor and outdoor facilities, many of
which have been identified in the City’s ADA transition plan and by the Infrastructure Blue
Ribbon Commission as requiring capital project work to bring them up to full ADA compliance
and/or sufficient conditions. Facilities of concern include Cubberley Community Center,
Foothills Park Restrooms, Lucie Stern Community Theatre restrooms, and Rinconada Pool locker
rooms. Staff continues to program work needed in this area as part of the Americans with
Disabilities Act Compliance capital project (PF-93009); however, the entire scope of work
needed in this area exceeds current resources.
Parks Trash Removal: The City currently does not have weekend trash removal services at most
urban parks. Prior to the COVID-19 pandemic, Rinconada and Mitchell Parks had weekend trash
removal, because those parks had picnic tables that could be reserved by residents. Staff have
noted that garbage cans can become overfilled on the weekends and are looking into how to
fund and operationalize adjustments to mitigate this issue. Possible solutions under
consideration include an increase in collection frequency, enhanced signage, and educational
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materials on waste reduction options such as reusable picnicware. Staff will bring forward
needs for reinvestment in this area in FY 2023 or as part of the FY 2024 budget process.
Permanent Parklet Program: On June 23, 2020 the City Council adopted an emergency
ordinance to temporarily permit businesses to operate outdoors on both public and private
property, referred to as the pilot parklet program (CMR 1143918). On April 19, 2021 the Council
directed staff to develop a permanent parklet program (CMR 1204119). The current pilot
program was extended most recently on October 24, 2022 (CMR 1469220) to extend the
temporary parklet program to June 30, 2023 and allow the other on-street and parking lot
dining and retail programs through December 31, 2023. Staff are developing a permanent
program which will include staffing and maintenance resources funded by new municipal fees
and associated revenues. This program is anticipated to be brought forward for Council
consideration in December 2022 and resources adjusted in FY 2023 or as part of the FY 2024
budget process.
General Liability Umbrella Excess Premiums: The City’s General Liability Program provides
funding to cover various insurance policies for City-owned equipment and machinery. The City
is self-insured for the first $1.0 million in losses per occurrence and participates in a Joint
Powers Authority for coverage up to $55 million per occurrence. These expenses are allocated
to citywide departments. General Liability Umbrella Excess Premiums are anticipated to
increase in future years due to significant national events and natural disasters such as claim
costs for Hurricane Ian. Staff will bring forward adjustments for these costs as part of future
budget cycles as they become available.
Fire Training Center: As part of the FY 2023 Adopted Capital Budget21 the City Council approved
the Fire Training Facility Replacement capital project (FD-24000) to identify an appropriate site
and construct a new fire training facility in Palo Alto. Funding was only appropriated for the
feasibility study portion of the project, and additional resources will need to be appropriated in
future budget cycles based on the results of the study. In addition, the Fire Department is also
evaluating opportunities to partner with other local jurisdictions for training needs, instead of
building a permanent facility in Palo Alto.
FY 2023 Budget Development Guidelines
When the Fiscal Sustainability Workplan (CMR 1026722) was approved by the City Council on
April 22, 2019 drafting a budget development policy was listed as part of the “Newly proposed
18 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2020/id-11439.pdf
19 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2021/id-12041.pdf
20 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2022/20221024/20221024pccsm-amended.pdf
21 https://www.cityofpaloalto.org/files/assets/public/administrative-services/city-budgets/fy2023-city-
budget/adopted-fy23/capital-budget_final-4-online-version.pdf
22 https://www.cityofpaloalto.org/civicax/filebank/documents/70506
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or potential activities proposed to be completed”. The i nclusion of Budget Development
Guidelines in with this forecast represents staff’s recommended method of addressing this
referral. Pairing Budget Development Guidelines with the forecast at the beginning of the
budget process links the anticipated fiscal condition of the organization with the necessary
context regarding service delivery prioritization and resource allocation that will be further
explored through the process. This also ensures that the City is able to proactively address
anticipated changes in its fiscal condition through the budget process.
As discussed earlier in this document, this preliminary forecast represents the initial steps of
the FY 2024 budget development process. Due to the clear overlap of projecting the City’s fiscal
condition and the need to shape service level expectations, staff recommends that the inclusion
of Budget Development Guidelines be incorporated into the discussions at the beginning of an
annual budget process. The FY 2024 Budget Development Guidelines, which are detailed in
Attachment A, are meant to reflect the anticipated fiscal condition of the City and to provide
high-level budgetary direction to the organization. These guidelines will shape and inform the
annual financial planning and the allocation of resour ces across the organization, especially in
the General Fund.
Conclusion
This forecast maintains current service levels approved in FY 2023 and should be used for
planning purposes to assist in gauging effects of major policy interventions against a likely
“status quo” version of the future. The level of uncertainty in this forecast is reduced from
where it was a year ago in terms of impacts from the COVID-19 Pandemic; however, the City is
continuing to manage through current economic uncertainty and evaluating potential impacts
on the local economy. Positive trends in major tax revenue categories that occurred in FY 2022
caused a one-time surplus of $14.2 million that Staff anticipates returning to Council in
February 2023 with the FY 2023 Mid-Year Review and recommendations in alignment with the
allocation for the appropriation of BSR funds above the 18.5% level. This includes transfers to
the Infrastructure Reserve (IR) in the Capital Improvement Fund ($4.0 million) and the City's
Section 115 Pension Trust Fund ($5.0 million), as outlined in the Pension Funding Policy, and a
recommendation to reserve funds to safeguard the stability the City has strived to achieve in
the recent year by re-establishing an economic uncertainty reserve ($5.0 million). Although
revenues have experienced growth in recent periods, the potential for recession makes it
difficult to determine if these trends will continue in the near term.
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The LRFF Base Case assumes a mild 18-month recession at the beginning of the ten-year period
in which revenue growth is anticipated to slow through the end of FY 2024. As a result, the LRFF
projects a surplus of $0.4 million in FY 2024, followed by a $3.4 million gap in FY 2025, and a
$2.6 million gap in FY 2026, with small but increasing surpluses in FY 2027 through FY 2033.
Additionally, this LRFF projects a range of $238 to $244 million in total revenues in FY 2023,
reflecting up to $6 million or 2.5% above adopted budget levels. The higher end of this
projection assumes that revenues will continue a similar positive trend as recent quarters.
However, actual results will vary depending on the timing and magnitude of recessionary
impacts in the near term. If these additional revenues continue to materialize in FY 2023, Staff
anticipates returning to Council as part of the FY 2023 Mid-Year Budget Review to recommend
using this funding to increase the economic uncertainty reserve to help mitigate impacts from a
recession as well as smooth the near-term gaps seen in the first few years of this LRFF.
In addition to the Base Case Forecast, staff modeled an alternate forecast scenarios that are
discussed below. The first alternative reflects a more severe recession compared to the Base
Case and increases the General Fund gap over the next ten years. FY 2024 changes from a
surplus to a gap of $3.5 million, and revenues are not anticipated to be able to fund the annual
expenditures until FY 2029. Staff also modeled an alternate forecast that reflects estimated
funding from Measure K and the impacts on the General Fund over the next ten years. The
surplus in FY 2024 increases to $1.1 million, the gap in FY 2025 reduces to $1.9 million, and FY
2026 changes from a gap to a small surplus. These alternate forecasts were done separately to
show the impacts of each scenario in isolation; however, aspects of both alternate forecasts
may occur in conjunction in the future.
Alternative Scenarios for Consideration
Alternative Forecast Scenario A: Moderate Recession
This alternative forecast models the impact of a moderat e recession that assumes slower
growth of major tax revenues as compared to the base case. In this alternative, the range for
excess revenues in FY 2023 is reduced from an upper estimate of $6 million to $3 million.
Additionally, growth rates in FY 2024 and beyond are slowed, reducing net earnings by
approximately $4 to $6 million in the forecast and extending the timeframe to recover to pre -
pandemic levels by one to three years. The summary table for this alternative forecast and the
Net Operating Margin graph for this alternative forecast are below. Additional discussion for
this alternative follows these figures.
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TABLE 8: FY 2024 – FY 2033 Long Range Financial Forecast
Alternative Forecast A
TABLE 9: FY 2024 –2033 Long Range Financial Forecast Net Operating Margin
Alternative Forecast A
The Base Case projected that by FY 2027, the City would begin to have a positive surplus; this
alternative forecast extends the operating gap to FY 2029. In this alternative, the General Fund
would have a gap of approximately $3.5 million in the first year of the forecast. This gap
increases to a peak of $7.2 million in FY 2025 and begins to taper in the two years following. FY
2029 is the first-year revenues would reach levels sufficient to support expenses.
Alternative Forecast B: Measure K Funding
This alternative forecast assumes the use of approximately 30 percent of revenues generated
from Measure K to offset known eligible expenses that contribute to funding gaps in the base
case. Measure K was presented on the November 8, 2022 ballot to establish a tax on businesses
operating in Palo Alto. This measure levies a tax on businesses based on a monthly rate of 7.5
cents per square foot of occupancy, subject to exclusions, with initial payments due January
2024. For the first two years, the tax would be imposed at half the rate. The tax rate and cap
would be increased by 2.5% annually to account for general inflation, beginning July 2026. The
tax would terminate January 1, 2058, unless extended by voters. The propose d tax is estimated
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to raise approximately $9.6 million each year for 35 years. The City Council has adopted
advisory spending guidelines stating its intention to expend revenues on long-term stable
funding for public safety, affordable housing and homeless services, and grade separated train
crossings that maintain safety and mobility for vehicles, bicyclists, and pedestrians, and to
annually report on tax revenues and expenditures. The summary table for this alternative
forecast and the Net Operating Margin graph for this alternative forecast are below. Additional
discussion for this alternative follows these figures.
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TABLE 10: FY 2024 – FY 2033 Long Range Financial Forecast
Alternative Forecast B
TABLE 11: FY 2024 – 2033 Long Range Financial Forecast Net Operating Margin
Alternative Forecast B
In this alternative, the eligible funds for Measure K are phased-in over three years, in alignment
with the anticipated implementation of the tax. As mentioned above, approximately 30 percent
of the total anticipated receipts are used to offset eligible costs. These additional resources
result in a higher surplus of $1.1 million in FY 2024 as compared to the base case. Additionally,
the gaps in forecast years are significantly reduced or eliminated. In this scenario, the City has a
one-time gap of $1.9 million in FY 2025 followed by continued surplus throughout the forecast.
STAKEHOLDER ENGAGEMENT
The preliminary forecast for FY 2024 represents the beginning of the fiscal year 2024 budget
development process. Information provided in this report will be discussed with the City
Council after Finance Committee and those conversations will provide direction to staff in the
budget development process. It is anticipated that conversations with City Council and the
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community will occur through public budget hearings in Spring 2023, according to the standard
budget adoption process.
RESOURCE IMPACT
Financial implications from this report and input from the Finance Committee will be
considered in the City Manager’s development of the Fiscal Year 2024 budget.
ENVIRONMENTAL IMPACT
This report is not a project for the purposes of the California Environmental Quality Act.
Environmental review is not required.
Attachments:
• Attachment A - FY 2024 Budget Policy Guidelines
• Attachment B - The Economy
• Attachment C - General Fund Base Case Revenue Assumptions
• Attachment D - General Fund Base Case Expense Assumptions
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Attachment A – FY 2024 Budget Development Guidelines
1) Develop a structurally balanced budget that brings ongoing revenues and expenses into
alignment. Develop a plan for any structural imbalance to ensure that the City maintains
fiscal sustainability over the short, medium, and long-term.
2) Allocate one-time resources for one-time needs rather than committing one-time
resources to ongoing services. Examine appropriate uses of revenue surpluses that
exceed forecasted levels such as planning for recession needs, restoration needs, and
strategic investments.
3) Ensure appropriate resource allocation for City Council’s existing priorities.
4) Focus on business process redesign to enhance quality, flexibility, and cost-effectiveness
of service delivery (include examining opportunities to streamline, simplify, reorganize,
and reallocate resources to avoid duplication of effort).
5) Explore alternative service delivery models (such as partnerships with non-profits or
other public/private sector groups) to minimize overlap, maximize cost share, and
effectively use resources.
6) Continue to thoroughly analyze non-personnel/equipment/other costs, such as contract
services, for cost savings opportunities or realignment with current needs.
7) Explore the expansion of existing revenue sources or the addition of new revenue
sources, including the alignment of existing charges for services and the opportunity to
establish new fees, when appropriate.
8) Continue to analyze and prioritize resource augmentations, seeking to offset
augmentations with reductions elsewhere for net-zero impacts to the budget whenever
possible; however, ensuring when resource augmentations are added, it is in alignment
with one-time and ongoing forecasted sources.
9) Continue to prioritize proactively funding long term liabilities including but not limited
to debt obligations, pension obligations, and capital infrastructure in accordance with
City policies as approved by Council.
FY 2024 Budget Development Guidelines
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ATTACHMENT B
The Economy
The economy closed 2021 with GDP growing 6.9% by the end of this calendar year with inflation
increasing, year-over-year by 7%, a level not seen since the early 1980s. As of October 2022, the
consumer price index (CPI) was below 8%. The unemployment rate at the end of 2021 was 3.9%
which was down from 6.4% at the beginning of this year. At the pandemic peak, unemployment
rate was at 14.7% when significant portions of the economy were shut down. The GDP growth in
2022 is expected to be below 3% then drop to low 2% in 2023. The unemployment rate hovers
around the mid 3% but is likely to go up as the economy cools down. The above outlook is
predicated on the federal reserve achieving a “soft landing” whereby there’s a slowdown in
economic growth that avoids recession for the purpose of stopping the economy from
overheating and continue to experience high inflation.
The local economy continues to show strong performance in the latter half of the calendar year
2022 though signs of “headwinds” are growing that are likely to stem economic growth. The UCLA
Anderson Forecast for California paints a generally positive picture for the state as compared to
national economic concerns, citing continued gains in gross domestic product. The outlook
reports that increases in defense spending and the continued demand for tech will likely keep
the economy growing, albeit at a slower pace. The outlook is that the world has become more
unstable so the expectation is that federal defense spending over the next few years will increase.
There have been broad-based hiring with leisure and hospitality, health care and social services,
and technology. However, the “mixed-signals” in economic data and headline news such as
technology sector layoffs are a concerning trend and a potential early indicator of an economic
slowdown. Another concerning trend, which California and the local economy are sensitive to, is
that the world economy seems to be worse than the U.S. With U.S. rising interest rates and global
instability, investors have been putting their money in the U.S. causing the dollar to rise against
other currencies. This causes U.S. exports to be more expensive around the world. The growing
home inventory, higher mortgage rates, and low and diminishing affordability are expected to
negatively impact the national and local housing market though demand for Palo Alto housing
has always been and is expected to remain strong.
According to the US Bureau of Economic Analysis (BEA), the “advance” estimate of the U.S.
economy’s real gross domestic product (GDP) percentage change, from the preceding quarter,
changed in the second and third (calendar) quarters of 2022 by a decline of .06% and an increase
of 2.6%, respectively. Real GDP is an inflation-adjusted measure that reflects the value of all
goods and services produced by an economy in a given year. According to the BEA, in the third
quarter the increase in real GDP reflected increases in exports, consumer spending,
nonresidential fixed investment, federal government spending, and state and local government
spending, that were partly offset by decreases in residential fixed investment and private
inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased.
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Table 1: National Gross Domestic Product (GDP)
The national Consumer Price Index (CPI), as of the second calendar quarter peaked at 8.6% and is
expected to steadily decline in the coming quarters. In the third quarter, actuals in July, September and
October 2022 were 8.2%, 8.2% and 7.7%. This is slightly better than shown in the Table 2 third quarter
forecast of 8.3% which bodes well for the forecasted declining trend.
Table 2: National Consumer Price Index
The nation’s unemployment rate is 3.7% as of October 2022, compared to a record high of 14.7%
at the height of the pandemic in April 2020. It is expected, by the U.S. Bureau of Labor Statistics,
that the unemployment rate will rise due to the Federal Open Market Committee (FOMC or aka
federal reserve) raising the federal funds (interest) rate in order to bring down the elevated
inflation rate. Per the State of California's Employment Development Department, the state’s
unemployment rate as of September 2022 is 4.1% with the prior year being 7% and the County
of Santa Clara is 2.3%. Nationally, the improved unemployment rates are driven by job gains in
the leisure and hospitality; trade, transportation and utilities; professional and business services;
education and health services; manufacturing, and construction. Hi storically, the Bay Area job
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growth has been led by the Peninsula for the past several years. The unemployment rate for the
San Francisco Peninsula was also in the low 2%.
Table 3: U.S. Unemployment Rate
The high inflation rate has resulted in the continued erosion of purchasing power, however, this has not
substantially deterred the U.S. consumer from spending. Real personal spending climbed 0.3% in
September. This was driven by a 0.6% increase in services spending with goods spending declining by 0.1%,
a tread reflected in the prior few months. As the pandemic restrictions have been removed, the trend
reflects consumers are shifting their activity to services and away from goods. Though there’s net monthly
solid growth, as reflected in the below graph, the year over year shows a slight decline
Table 4: Real Personal Spending Growth
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ATTACHMENT C
General Fund Base Case Revenue Assumptions
Sales Tax
Compared to FY 2019 pre-pandemic actuals of $36.5 million, sales tax revenue declined by $7.4
million, or 20.2%, during the pandemic in FY 2021. The recovery, which began in the last quarter
of FY 2021, resulted in the FY 2022 receipts increasing by $3.6 million or 12.3%. Though this trend
has continued in the first quarter of FY 2023, the rate of recovery is expected to decline. The
general retail, food products (includes restaurants), business to business (includes car leasing),
and transportation (includes auto sales) categories experienced significant increases. This
economic trend also occurred in municipalities in the San Francisco Bay Area and in California.
These significant upward trends were partially offset by construction activity, which has been
declining.
The FY 2023 Adopted Budget for Sales Tax is $32.6 million, a $0.1 million or 0.4% decline over FY
2022 actuals of $32.7 million. In FY 2024, this revenue is anticipated to increase to $33.3 million,
a $0.7 million or 2.2% increase over the FY 2023 Adopted Budget. Revenue in this category is
experiencing growth; however, is not anticipated to reach pre-pandemic levels until FY 2026. The
Base Case assumes 4.3 to 6.7% growth over the length of the forecast.
TABLE 1: City of Palo Alto Sales Tax Revenues through FY 2033
Property Tax
Property tax revenue is the General Fund’s largest revenue source and represents approximately
25% of the total revenues. Historically, the 10-year compound annual growth rate (CAGR) was
8.4% with a low of 3.1% in FY 2012 and a high of 11.5% in FY 2015. During economic downturns,
impacts to property tax occur a year later, however, due to robust residential and commercial
property sales and significant Educational Revenue Augmentation Fund (ERAF) growth, the FY
2022 actual growth was 4.9%. In addition, fiscal years 2019, 2020, 2021, and 2022 included
receipts of $2.7 million, $3.9 million, $5.5 million, and $6.6 million, respectively, for excess ERAF
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distributions from the County of Santa Clara. The FY 2022 budget included $4.9 million for excess
ERAF, however, actual receipts were $6.6 million, or $1.7 million higher which is explained further
below. ERAF is the fund used to collect and disburse property taxes that are shifted to/from cities,
the County, and special districts prior to their reallocation to K-14 school agencies. When the
state shifts more local property tax than required to support schools, these funds are returned
and known as excess ERAF. As a result of the volatility of ERAF, it is not considered a permanent
local revenue source.
In FY 2021, five counties including Santa Clara County, and the State were in a dispute over the
calculation and disbursement of excess ERAF funds. In a claim by the State, calculations for excess
ERAF incorrectly shifted too much property tax from schools to local agencies. The City set
established a reserve for the potential litigation amounts that was later released to the Budget
Stabilization Reserve (BSR) upon reaching a favorable resolution. In November 2021, the County
of Santa Clara notified the cities that the California School Boards Association and its Education
Legal Alliance filed a lawsuit against the Controller of the State of California arguing that the
settlement reached with the counties is unlawful. The County estimates a range between 20 to
30% of Excess ERAF is at-risk. The FY 2023 Budget assumes 25% or $1.5 million for a potential
loss starting in the current year and extending into forecast years. The FY 2022 amount at risk,
$1.7 million, was sent to the City since the lawsuit wasn’t settled in FY 2022; these funds were
recognized as property tax receipts in FY 2022 and are reserved, pending the settlement of the
lawsuit. Staff will continue to monitor the status of this dispute and report on any significant
developments.
Transfer of ownership has been a significant driver of past growth; however, that growth is
expected to moderate in FY 2023 due to the expected economic slowdown and the higher
mortgage rate. For example, the median sales price of single family residential in the fourth (fiscal
year) quarter of FY 2022 declined by 5.3% over the prior quarter.
TABLE 2: City of Palo Alto Property Tax Actuals and Forecast through FY 2033
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The FY 2023 Adopted Budget for Property Tax is $59.8 million, a $0.4 million or 0.7% increase over
the FY 2022 actuals of $59.4 million. In FY 2024, this revenue is anticipated to increase to $63.7
million, a $3.9 million or 6.5% increase over FY 2023 Adopted Budget level.
Transient Occupancy Tax (TOT)
Revenue in this category is impacted by business and other leisure/non-leisure travel and has
experienced significant reductions in FY 2020 and FY 2021 due to public health orders, travel
restrictions, and diminishing business and personal travel plans resulting from the pandemic. TOT
revenue declined by $20.5 million or 79.8%, when comparing the FY 2019 pre-pandemic actuals
of $25.6 million to the pandemic FY 2021. As public health conditions improved and travel
resumed, this revenue began to recover and significantly grew in FY 2022. Though this revenue
remains below pre-pandemic actuals, strong growth was realized in the FY 2021 fourth quarter
and in FY 2022. In FY 2022, actual receipts were $16.9 million, an increase of $11.8 million, or
227.2% higher. The opening of the two Marriott hotels in mid and late FY 2021 and the re-opening
of multiple hotels in FY 2021 and FY 2022 were positive developments that help drive recovery
for this tax revenue.
The FY 2023 Adopted Budget for TOT adopted is $18.2 million, a $1.3 million or 7.4% increase
over FY 2022 actuals of $16.9 million. In FY 2024, this revenue is anticipated to increase to $25.0
million, a $6.8 million or 37.3% increase over the FY 2023 Adopted Budget. Year-to-date (as of
August 2022), daily average room rates increased by 61.2% from $155.73 per day to $251.04 per
day while occupancy rate increased by 24.4% from 60.2% to 75%. Revenue in this category is
experiencing growth; however, is not anticipated to reach pre-pandemic levels until FY 2026.
TABLE 3: City of Palo Alto Transient Occupancy Tax Actuals and Forecast through FY 2033
Note: January 2015, TOT Rate went from 12% to 14%
April 2019, TOT Rate went from 14% to 15.5%
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Utility User’s Tax (UUT)
The UUT is levied on electric, gas, and water consumption, as well as on telephone usage.
Revenue in this category is impacted by consumption levels and has experienced reductions in
prior periods due to water conservation programs and reduced workforces and business closures
due to the pandemic. This revenue is expected to recover as the local economy recovers and
workers partially return to the office. The FY 2023 Adopted Budget for UUT is $15.6 million,
consistent with FY 2022 actuals. In FY 2024, this revenue is anticipated to increase to $15.9
million, a $0.3 million or 1.9% increase over the FY 2023 Adopted Budget. Revenue in this
category is experiencing growth; however, is not anticipated to reach pre-pandemic levels until
FY 2025.
TABLE 4: City of Palo Alto Utility Users Tax Actuals and Forecast through FY 2033
Documentary Transfer Tax (DTT)
Revenue in this category is highly volatile and dependent on sales volume and the mix of
commercial and residential sales. DTT experienced record receipts in FY 2021 and FY 2022 at
$10.6 million and $12 million, respectively. In both years, these milestones were a result of large
commercial transactions, six in FY 2021 and nine in FY 2022, and robust residential sales. Revenue
from July through October in FY 2022 is running 37.9% below the same period in FY 2021 which
is expected, however, this is around 25% below the average normal year’s receipt. The FY 2023
Adopted Budget for DTT is $7.2 million, $4.8 million or 39.8% lower than FY 2022 actuals of $12
million. In FY 2024, this revenue is anticipated to decrease to $6.9 million, a $0.3 million or 4.8%
decrease from FY 2023 levels.
As in past years, this revenue source is challenging to forecast and can fluctuate month to month
depending on real estate transactions. The number of transactions through September 2022
(136) are running lower than those through September 2021 (215) with the total value of these
transactions decreasing by 37%. Though the Palo Alto housing market remains strong, as
discussed in the Property Taxes section, single family residential median sales price in Palo Alto
has slightly declined, which is an expected occurrence as the predicated economic downturn and
higher mortgage rate will impact property sales activity in FY 2023.
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TABLE 5: City of Palo Alto Documentary Transfer Tax Actuals and Forecast through FY 2033
Rental Income
Rental Income of $16.4 million in FY 2024 primarily reflects rent paid to the General Fund from
the City’s Enterprise Funds and the Cubberley Community Center. There is a slight increase in
rental income of $0.8 million compared to the FY 2023 Adopted Budget. The increase can be
attributed to a review of the changes in the California Consumer Price Index (CCPI) in the San
Francisco Bay Area from the August-to-August period, and it is expected that revenues will be
reviewed and revised subsequent to this forecast based on updated information, typically the
December-to-December change in the CCPI.
The City is no longer receiving rental income from the former Los Altos Treatment Plant (LATP)
site. The site is no longer available for traditional rental as a laydown yard, although the
contractors of the planned projects may need to use portions of the site for this use. The site is
planned for two uses: 1) an interim housing project with Project Homekey to provide
opportunities for homeless individuals and families, and 2) a joint water purification project with
the Santa Clara Valley Water District. Please see the Expense Assumptions General Expenses
section of this report for additional information regarding Project Homekey developments at the
former LATP site. The water purification project is being funded in the Wastewater Treatment
Fund, so it is not part of the General Fund LRFF; however, funding needs for the project will be
discussed in the development of the FY 2024 budget for the Wastewater Treatment Fund.
Charges for Services and Permits and Licenses
Revenues in the ‘Charges for Services’ and the ‘Permits and Licenses’ categories are anticipated
to be $33.4 million and $11.5 million, respectively, in FY 2024. Together, these amounts total
$44.8 million and are approximately $4.8 million higher than the FY 2023 Adopted Budget of
$40.0 million. Increases in this category are primarily due to revenue adjustments for the
agreement with Stanford to provide Fire and Dispatch services, the elimination of the
Economically Sensitive Department Revenue Reserve, and adjustments to development center
revenues.
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Revenues in these categories were impacted by changes in FY 2024, such as increasing golf
revenue estimates in alignment with the last two fiscal years of operation. These budget
categories also include revenues associated with two fee-based programs in the Fire Department:
a first responder fee (assessed on commercial insurance companies), to cover the cost for initial
response for first due engine; and an ambulance subscription fee (FireMed program), to secure
co-pay free ambulance transport. These fees were implemented in 2022 with revenue expected
to continue growing as advertising campaigns develop.
Additionally, revenues in these categories were impacted by a phase-out of the Economically
Sensitive Department Revenue Reserve. This reserve was established to mitigate unexpected
losses from services impacted by the COVID-19 pandemic, such as the suspension of parking
enforcement, delays in opening the Junior Museum and Zoo, and limited operations at
community centers, recreational facilities, and the Children's Theatre. In total, $2.5 million was
set aside for this purpose in the prior year. This forecast assumes gradual overall improvements
in the return of canceled or modified services by phasing out this reserve in its entirety in FY
2024.
The revenue estimates in these categories are based on current activity levels. These revenue
sources are primarily driven by the cost of staff to provide services to the community. Therefore,
as part of the FY 2024 Municipal Fee process, staff will evaluate and bring forward
recommendations to align fees with target cost recovery levels, and general salary and benefits
and CPI trends. One exception to this is for Development Services activities and related revenue.
Development Services fees are fully cost-recoverable, and the department has been modeled as
cost-neutral in this forecast. staff will analyze municipal fee revenue activity as part of the FY
2024 Budget development process and bring forward adjustments as appropriate.
Charges for Service - Stanford Fire and Dispatch Services: The City and Stanford have two separate
agreements for the provision of fire response and emergency dispatch services. The fire response
services agreement became effective in July 2018 and outlines service level terms and a new cost
allocation methodology as the baseline for agreement costs. The term extends through June
2023, with renewals through 2028 unless otherwise terminated. The agreement included a new
staffing deployment model for suppression and medical services, which was approved by the City
Council in October 2017 and deployed in January 2018. This forecast aligns with the new staffing
model and, in accordance with the agreement, adjustments to revenue from Stanford have been
aligned with the year-over-year changes to the operating expenses in the Fire Department for FY
2023. Similarly, changes to the revenue received for dispatching services have been aligned with
the FY 2023 adjustments to the operating expenses in the Technical Services Division of the Police
Department where the costs to provide these services are budgeted. For fire and police revenue,
additional adjustments may be applicable if new labor agreements are negotiated. Revenues for
these services are based on anticipated changes in salary and benefits costs within the Fire
Department and Police Department Dispatch Unit.
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Charges to Other Funds
The main source of revenues in this category is General Fund administrative cost allocation plan
charges to the Enterprise and Internal Service Funds. Internal support departments such as
Administrative Services, Human Resources, and Council Appointed Offices provide services to
Enterprise and Internal Service Funds. The costs for these services are recovered through the
administrative cost allocation plan charges. The FY 2024 estimate for Charges to Other Funds of
$14.5 million reflects a slight increase of 5.6% from the FY 2023 Adopted amount of $13.7 million;
this is primarily attributed to fully adjusting the costs associated with the allocated charges in the
Internal Support Departments to the adjustments made as part of the FY 2023 Budget as well as
a technical adjustment to better align the cost plan methodology with the system calculations.
Return on Investment
The return-on-investment category reflects the interest earnings on the City’s investment
portfolio. This category is a combination of past investments, new investments at current market
rates, and available investable cash which fluctuates seasonally and annually. As of the timing of
this LRFF, the Federal Open Market Committee (FOMC) has raised the federal funds rate six times
totaling 3.75% and may increase this rate further to bring down the inflation rate between 2 to
3%. As a result, an increase in interest earnings is forecasted; earnings on new portfolio
investments have increased from 0.5 to 2% to 4.5 to 6%.
The average portfolio rate of return for the first quarter of FY 2023 was 1.66%, and a 1.62%
average yield as of the fourth quarter of FY 2022. The adopted budget General Fund FY 2023
interest earning is $1.1 million. Though this is below the FY 2022 actual of $1.3 million, the
expectation is the actuals in FY 2023 will be higher. In FY 2024, the forecast reflects a relatively
high interest rate environment with increased interest earnings through the ten-year period.
TABLE 6: Palo Alto Historical Investment Portfolio Yields and Citywide Interest Earnings
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Operating Transfers-in
Operating Transfers-in materialize as expenses in other funds throughout the City and as a
revenue in the General Fund. This budget category includes repayment of a previous loan from
the General Fund to the Airport Fund, funding for police patrol in the downtown area, and the
equity transfer from the Electric and Gas funds. Overall, the Operating Transfers-in are estimated
to be $23.6 million, a $1.1 million increase from the FY 2023 level of $22.5 million due to a $0.5
million increase from the Electric Fund and a $0.6 million increase from the Gas Fund.
In accordance with the methodology approved by the City Council in June 2009, the electric to
general fund equity transfer has been calculated by applying a rate of return on the capital asset
base of the Electric Fund. This rate of return is based on PG&E's rate of return on equity as
approved by the California Public Utilities Commission (CPUC). This LRFF also assumed the
passage of Measure L on the November 2022 ballot to seek voter approval of the City’s gas to
general fund equity transfer going forward. As outlined in the ballot measure language, Staff
calculated the gas to general fund equity transfer as 18% of annual gross gas retail revenue.
This LRFF also considers the trial court’s decision in Green v. City of Palo Alto (Santa Clara Superior
Court Case No. 16CV300760), a class action lawsuit which challenged the City’s gas and electric
rates under Proposition 26, one of many such cases following a 2015 decision involving the City
of Redding. In Green, the trial court judge found the City’s electric rates valid, but held that the
City’s gas rates were taxes requiring voter approval under California’s Proposition 26, because
they were set at a level sufficient to fund an annual transfer to the City’s general fund. On June
24, 2021, the trial court entered judgment partially against the City and ordered the City to pay
$12.6 million to a common fund to refund gas ratepayers and for payment of incurred litigation
costs.
The City and the plaintiffs appealed the trial court’s judgment. Payment of refunds due to gas
ratepayers under the trial court judgment are stayed pending a decision by the Court of Appeal
(expected in 2023) on the parties’ respective appeals. While the ultimate outcome of the claim
is uncertain, the City set aside funding in the General Fund for the potential financial impacts.
Specifically, the City recorded a claim payable of $17.5 million, which includes the trial court
judgment covering claims for 2015-2019, plus an amount covering refunds for 3 additional years
of plaintiff’s claims that were tolled (paused) during active litigation. While the process for
calculating the equity transfer from the Electric and Gas Funds has not changed, the City has
placed the funds in a Litigation Reserve. This action continues the City’s proactive actions to
address known liabilities with the best information available at the time and sets these funds
aside pending final resolution of this dispute.
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ATTACHMENT D
General Fund Base Case Expense Assumptions
Salary and Benefits
The table above depicts the estimated General Fund salaries and benefits costs. Consistent with
prior years, the FY 2024 salaries and benefits costs represent approximately 60% of the General
Fund budget expenditures.
Salary and Benefits are projected to increase $11.3 million or 7.6% from the prior year, from
$148.4 million to $159.7 million. Discussed in the following sections, this is primarily attributable
to increases in salaries ($6.1 million or 7.7%) and pension costs ($4.1 million or 10.5%).
Salary
Consistent with the City’s salary budget methodology for recent budgets, positions are budgeted
at the actual rate of pay of employees including benefit selections as of Fall 2022. Then, by
position, salary costs are updated in accordance with applicable Memorandum of Agreements
(MOA’s) between the City and its labor groups and the Management and Professional Personnel
and Council Appointees Compensation Plan(s). It is important to note that as of this forecast, all
bargaining groups are near the end of their agreement terms and the City is actively engaged in
negotiations with the various labor groups. The forecast assumes step increases for employees
in applicable positions, including SEIU, IAFF, and PAPOA, and merit increases for Management
and Professional employees including UMPAPA. A general wage adjustment of 2.0% is included
for all employees starting in either January 2023 or July 2023 for all years of the forecast since no
MOA’s would be in effect at that time. This is consistent with prior Council direction in previous
long range financial forecasts to use the 2.0% increase as a forecasting assumption, not as a
commitment to future negotiations. Additionally, this forecast includes a level of reserve to reach
a target market placement for employee compensation in new labor agreements, as directed by
the City Council. Staff expects to adjust these costs throughout the budget development process
in accordance with final contract terms.
Benefits
Pension: Pensions are budgeted based on CalPERS determined rates as of the June 30, 2021
valuation (CMR 146281) for the City’s Miscellaneous and Safety plans. CalPERS determines the
City’s total contributions for a given Fiscal Year as the sum of two factors: Normal Cost (NC) and
Unfunded Accrued Liability (UAL). Together the NC and the UAL expressed as a percentage of
payroll is the ‘blended rate’ and is used to represent total costs in the discussion below.
The Normal Cost (NC) is expressed as a percentage of payroll and is paid as part of the payroll
reporting process of active employees. Commonly referred to as the ‘pay-go’ cost, the NC is
variable and increases or decreases directly with the salary levels of the City. It represents the
1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2022/20220920/20220920pfcs.pdf
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necessary funding for the City to pay for employees presuming that CalPERS meets the current
set of assumptions.
In a year that CalPERS does not meet assumptions, due to plan changes, assumption changes,
method changes, or plan experience (including investment gains/losses), there is an increase or
decrease to the Unfunded Accrued Liability (UAL). Commonly referred to as the ‘catch-up’ cost,
the UAL is expressed as a dollar amount and is calculated over an amortized period with defined
annual payments, similar to a mortgage. The contributions for UAL are billed as a flat dollar
amount as opposed to a percentage of payroll due to potential funding issues that could arise
from a declining payroll or number of active members in the plan. However, CalPERS provides an
estimated percentage of payroll for UAL to allow a consistent comparison of total costs.
In the miscellaneous plan, total costs are projected to increase from the current 42.9 percent in
FY 2023 to the 44.8% in FY 2024. In the safety plan, total costs are projected to increase from the
current 71.1% in FY 2023 to 74.0% in FY 2024. These rates do not consider the employee pick-up
of the employer share; that pick-up materializes as savings in the City’s pension costs. Consistent
with applicable MOAs, the FY 2023 forecast presumes that the miscellaneous plan will pick up 1
to 2% of the employer pension cost and that safety plan members will pick up 3 to 4%.
The FY 2024 budget was impacted by significant favorable investment returns of 21.3% (6.8%
assumption) earned in the most recent June 30, 2021 valuation and changes to economic and
demographic assumptions resulting from the CalPERS Asset Liability Management (ALM) process
and Experience Study completed in November 2021. As part of the ALM, the CalPERS board
approved a reduction to the discount rate (from 7.0 to 6.8%), revised actuarial assumptions (price
inflation from 2.5 to 2.3%), and a new asset allocation targeting 1/3 investment in private assets,
5% leverage, and reduced public equity exposure.
Since the issuance of the current valuation, CalPERS announced a preliminary investment loss of
6.1% for the period ending June 30, 2022. These results will be included in the CalPERS valuation
report issued in Fall 2023 to inform the development of the FY 2025 budget. The resulting liability
of the investment loss will be amortized over 20 years with a 5-year ramp-up period. To inform
this LRFF, staff used the CalPERS Pension Outlook Tool to calculate the estimated impacts,
resulting in additional costs of $3.4 million ($2.6 million in the General Fund) in FY 2025, and
increasing to $16.8 million ($12.9 million in the General Fund) at the peak of the 5-year ramp in
FY 2029.
TABLE 1: CalPERS’ Projected FY 2023-2033 Blended Retirement Rates
(percentage of payroll)
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
FY
2028
FY
2029
FY
2030
FY
2031
FY
2032
FY
2033
Miscellaneous 42.9 44.8 43.6 38.9 32.9 30.9 30.7 30.3 30.1 26.7 25.4
Safety 71.1 74.0 72.3 69.5 66.8 63.6 63.2 61.9 61.4 57.9 55.8
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The City has taken several proactive steps to address rising pension costs and long-term liabilities,
including cost-sharing in labor agreements, establishing an irrevocable Section 115 Pension Trust
(“Pension Trust”) (CMR 7553 2), and adopting a Pension Funding Policy (CMR 11722 3). As part of
policy goals, the City seeks to reach a 90% funded status by FY 2036. This policy is subject to
modification at City Council discretion and requires that staff report the status of the funding
goal every three years. Consistent with the Pension Policy, staff continues to include the NC of
pension at a more conservative discount rate than CalPERS in budget assumptions and transmits
amounts above required payments (“supplemental contributions”) to the Pension Trust.
Beginning in FY 2023, the City Council approved to reduce the discount rate for supplemental
contributions from the previously approved rate of 6.2% to 5.3% over two years; FY 2023 is a
transitional year in which six months or the equivalent of approximately 5.8% is budgeted.
Additional one-time contributions continue to be made each year if excess revenues or unspent
savings are available, subject to City Council approval.
In accordance with Pension Policy reporting requirements, staff is engaged in a series of meetings
with the Finance Committee in Fall 2022 to review the status of the City’s pension and retiree
healthcare plans, and Pension Policy. Staff expects as part of this review to memorialize any
practices adjusted since the adoption of this policy, review progress towards policy goals, and
recommend potential modifications to the Pension Policy or budgetary practices used to inform
the financial planning of these benefits. This series of reports includes: 1) Review of the most
current actuarial analysis as distributed by CalPERS (CMR 14628 4), 2) Review of the current status
of both the Pension and Other Post-Employment Benefits (OPEB)/retiree healthcare liabilities
including the proactive contributions and discussion with plan providers (CMR 14829 5), and 3)
Review of actuarial analysis based on alternative assumptions as defined in the Pension Funding
Policy and recommended revisions to the Pension Funding Policy for City Council consideration
and adoption (tentatively scheduled December 6, 2022).
In this forecast, approximately $12.2 million ($7.2 million in the General Fund) in supplemental
contributions is assumed in FY 2024. This reflects a $4.0 million ($2.7 million in the General Fund)
increase over the prior year, primarily due to the transition to a lower discount rate. Through FY
2023, a total of $49.4 million (31.8 million in the General Fund) in principal contributions are
expected to be made to the Pension Trust.
In the General Fund, it is anticipated the City will spend a total of $43.1 million on total pension
costs in FY 2024, including both CalPERS contributions and supplemental Pension Trust Fund
contributions. This is approximately $4.1 million higher than the prior year costs of $39.0 million,
or a 10.5% increase. These expenses represent approximately 17% of the General Fund’s total
expenses.
2 http://cityofpaloalto.org/civicax/filebank/documents/55487
3 http://cityofpaloalto.org/civicax/filebank/documents/79256
4 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2022/20220920/20220920pfcs.pdf
5 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2022/20221018/20221018pfcs.pdf
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Healthcare: Consistent with the most recent labor agreements between the City and its
bargaining units in the General Fund, the City’s contribution amounts towards medical costs for
employees are based on a flat rate contribution from the City, with the employee contributing
towards the remaining medical plan premium. Like salaries, healthcare costs are updated in
accordance with applicable Memorandum of Agreements (MOA) between the City and its labor
groups and the Management and Professional Personnel and Council Appointees Compensation
Plan(s).
Retiree Healthcare/Other Post-Employment Benefits (OPEB): Retiree Medical is based on the June
30, 2021 actuarial study prepared by Bartel Associates, which is completed every two years. The
most recent study was completed in June 2022 to inform the development of the FY 2023 and FY
2024 operating budgets (CMR 14112 as amended by CMR 145026). Consistent with City Council
direction, this forecast continues the practice to budget for the full payment of the Actuarial
Determined Contribution (ADC) for retiree healthcare, using a more conservative discount rate
to transmit amounts above the recommended payment as an additional discretionary payment
(“prefunding”) to the California Employers’ Retiree Benefit Trust (CERBT) Fund.
The results of the recent valuation benefited from significant favorable investment returns of
27.5% (6.25% assumption) and lower than anticipated healthcare premiums. The City Council
further adjusted funding to continue alignment with the proactive pension funding assumptions
as well as known variable such as June 30, 2022 market returns. Budgetary assumptions in LRFF
include a zero percent return in 2021-22 (one-time), a 5.75% discount rate (6.25% assumption),
and shortened amortization (from 22 to 15 years). Through FY 2023, it is expected that $8.0
million in supplemental principal contributions will be made to the CERBT Trust.
CalPERS blends active employees with pre-Medicare retirees and charges the same medical
premium, even though younger employees on average consume less healthcare. The higher
premium to younger employees thereby subsidizes older employees and retirees who, on
average, have higher claims and premiums. The FY 2024 Budget estimates $16.4 million ($10.5
million in the General Fund) for ADC, an approximate $0.5 million or 2.9% increase from FY 2023
levels of $15.9 million ($9.9 million in the General Fund). The implied subsidy is $3.1 million in FY
2024 and effectively lowers the funding necessary to meet the ADC.
TABLE 2: Retiree Medical General Fund Contributions
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033
$10.2 $10.5 $10.9 $11.2 $11.5 $11.9 $12.3 $12.7 $13.1 $13.5
Workers’ Compensation: The budget appropriation for workers' compensation includes an
estimate for claims incurred and reserves for current filings at an 85% confidence level, based on
actuarial studies completed by Bickmore. In FY 2022, claims expenditures decreased slightly by
$39,000 or 0.6% from $6.07 million to $6.04 million from the prior year. Actuarial estimates
6 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance-
committee/2022/20220607/20220607pfcsm-final.pdf
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 45 Packet Pg. 417 of 473
completed in August 2021 informed FY 2023 budget levels of $6.5 million (approximately 65% in
the General Fund). More recent actuary estimates completed in August 2022 project higher than
expected levels for FY 2023 at $6.9 million. Staff will continue to monitor expenditures in the
fund and bring forward adjustments as necessary. Estimates for FY 2024 are $7.3 million,
representing a $0.8 million or 12.9% increase over the Adopted FY 2023 Budget. Estimates for
workers' compensation increase in the forecast at rates consistent with general CPI increases.
Contract Services
This forecast assumes contract services of $23.9 million in FY 2024, a 1.1% decrease from the FY
2023 Adopted budget of $24.2 million. This decrease is driven primarily by the removal of one-
time costs adopted in FY 2023 including funding to address continued COVID-19 recovery efforts
across the City. These decreases are partially offset by service contract increases as well as a 5.0%
CPI cost increase in FY 2024 based on a review of the changes in the California Consumer Price
Index (CCPI) in the San Francisco Bay Area from the August-to-August period. It is expected that
the estimated CPI increases will be substituted with department base budget requests to adjust
contract funding needs as part of the FY 2024 budget process.
Contract Services - Committed Additions
The Committed Additions included in this forecast account for anticipated operating and
maintenance (O&M) costs in the General Fund for capital projects anticipated to come online
within the ten-year forecast period. A preliminary total estimate of $0.3 million for costs
associated with the following projects anticipated to come online in FY 2024: Boulware Park
Improvements (PE-17500), Dog Park Installation (PG-18001), Library Automated Materials
Handling (LB-21000), Park Restroom Installation (PG-19000), Public Safety Building (PE-15001),
and Rinconada Park Improvements (PE-08001). The Public Safety Building is anticipated to be
complete in Fall 2023, so the full O&M cost for the facility is anticipated to be realized in FY 2025.
Additional cost increases are included throughout the ten-year forecast based on a review of the
changes in the California Consumer Price Index (CCPI) in the San Francisco Bay Area from the
August-to-August period. Timing and analysis of the funding needs for these projects will be
evaluated as part of the FY 2024 Budget process. Also, estimated operating impacts from the Fire
Station 4 (PE-18004) project are included starting in FY 2026.
TABLE 3: FY 2024 – FY 2033 Committed Additions (Millions)
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033
$0.3 $0.6 $0.6 $0.6 $0.7 $0.7 $0.7 $0.7 $0.8 $0.8
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 46 Packet Pg. 418 of 473
Supplies and Materials
The FY 2023 Adopted Budget for the General Fund included $3.2 million for Supplies and
Materials, which is anticipated to increase by a 5.0% CPI cost increase in FY 2024 to $3.3 million
based on a review of the changes in the California Consumer Price Index (CCPI) in the San
Francisco Bay Area from the August-to-August period. It is expected that the estimated CPI
increases will be substituted with department base budget requests to adjust funding for supplies
and materials as part of the FY 2024 budget process.
General Expense
This category includes costs for travel and meetings, telephone and non-city utilities, contingency
accounts and reserves, bank card service charges, and subsidies and grants provided through the
Human Services Resource Allocation Program (HSRAP). The FY 2023 Adopted Budget of $21.8
million is expected to decrease to $8.6 million in FY 2024, primarily due to phasing out the Utility
Ligation reserve and elimination of the one-time Budget Uncertainty Reserve. Please see the
Revenue Assumptions Operating Transfers-In section of this report for further information about
the Utility Transfer Litigation reserve. The reduction is partially offset by a CPI cost increase based
on a review of the changes in the California Consumer Price Index (CCPI) in the San Francisco Bay
Area from the August-to-August period. It is expected that the estimated CPI increases will be
substituted with department base budget requests to adjust funding for general expense items
as part of the FY 2024 budget process.
General Expense – Project Homekey: On September 27, 2021 the City Council directed staff to
apply for Project Homekey funding in conjunction with LifeMoves to build an emergency shelter
at the former Los Altos Treatment Plant (LATP) site (CMR 13595 7). This project will rapidly deploy
modular housing to provide interim housing opportunities for homeless individuals and families
in the City of Palo Alto. Project Homekey is a program, funded by the State of California
Department of Housing and Community Development, intended to provide grant funding and
facilitate a partnership with the State to quickly acquire, rehabilitate, or master lease a variety of
housing types. Once developed, these projects provide interim or permanent housing options for
persons experiencing homelessness and who are also at risk of health concerns. The site would
be operated for at least fifteen years as interim housing per the program’s durational
requirement. This project would utilize a combination of funding sources including the Project
Homekey Program for capital expenses and donations, grant funds, and City support for ongoing
operations expenses. This LRFF includes the City’s committed investment of $7.0 million in
operating expenses ($1.0 million annually FY 2023 through FY 2029), with actual timing of the
funding still to be determined. Some operating funding support is expected from Project
Homekey as well as the County of Santa Clara. Any remaining gaps in funding will need to be
closed by fundraising, operating cost containment strategies, and/or grant funds.
General Expense - Cubberley Lease: In FY 2015, the City and Palo Alto Unified School District
(PAUSD) agreed to a five–year extension of the Cubberley lease from January 2015 to December
7 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2021/09-september/20210927/210927accsm-amended-final.pdf
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 47 Packet Pg. 419 of 473
2019. In October 2019, the City Council directed staff to negotiate with PAUSD to extend the
lease agreement an additional five years, through December 2024 (CMR 107308). A new
Cubberley lease was approved by the City Council in June 2020 (CMR 11460 9) for a smaller
portion of the Cubberley site with a correspondingly lower base rent payment (CMR 11386 10). As
part of the original lease agreement, the City Council approved creation of the Cubberley
Infrastructure Improvements Fund. The new lease continues the $1.9 million transfer to the
Cubberley Property Infrastructure Fund, which is classified as an Operating Transfer-Out and
discussed in further detail in that section of this report below. With the Cubberley Infrastructure
funds set aside, the annual base rent for the Cubberley premises is $2.7 million. Other pending
factors at the Cubberley site that are part of ongoing discussions, but not included in the LRFF
estimates are returning the S Building to PAUSD and the Community Services Department is still
interested in negotiating with PAUSD to expand the Cubberley premises by renting additional
space from the M Building. Separately, the City leases extended child daycare sites from PAUSD
on a one-year lease from July 2022 to June 2023. The combined annual rent for the child daycare
sites plus utilities amounts to $0.8 million.
Rents and Leases
The Rents and Leases expense category for FY 2024 is estimated to increase from the FY 2023
Adopted Budget level by approximately 2.7% to $1.4 million, This is based on current lease terms
that include previously negotiated lease increases or CPI cost increases based on a review of the
changes in the California Consumer Price Index (CCPI) in the San Francisco Bay Area from the
August-to-August period. This current estimate will be updated when the December-to-
December CPI information is available. This category includes the lease agreement for
Development Services staff at locations outside City Hall (285 Hamilton and 526 Bryant) as well
as lease with Stanford for El Camino Park. A new lease agreement was executed in December
2020 for the Development Services office location at 526 Bryant Street, limiting the space to the
basement level (CMR 11426 11). The lease was amended in September 2022 to extend the term
initially for 12 months with the right to automatically extend for four successive 12-month
periods, potentially through January 31, 2028 (CMR 14713). In June 2021, the City entered into a
seventh amendment for the Development Services office lease at 285 Hamilton Avenue to extend
the term from February 2022 to January 2025 (CMR 1233412). As expenses for rent for
Development Services are adjusted, a corresponding revenue adjustment will be made to ensure
Development Services maintains cost recovery levels.
Facilities and Equipment
The Facilities and Equipment expense category is expected to decrease from the FY 2023 Adopted
level of $480,000 to $450,000 due to the elimination of funding for one-time equipment
8 https://www.cityofpaloalto.org/civicax/filebank/documents/73558
9 http://cityofpaloalto.org/civicax/filebank/documents/77365
10 http://cityofpaloalto.org/civicax/filebank/documents/77073
11 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2020-2/id-11426.pdf?t=59979.32
12 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/2021/id-12334.pdf
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 48 Packet Pg. 420 of 473
purchases in FY 2023 such as electric leaf blowers and medical gurneys. Along with funding for
various equipment across departments, this budget category includes subscription payments for
equipment like public safety radios. The reduction is partially offset by a CPI cost increase based
on a review of the changes in the California Consumer Price Index (CCPI) in the San Francisco Bay
Area from the August-to-August period. It is expected that the estimated CPI increases will be
substituted with department base budget requests to adjust funding for equipment needs as part
of the FY 2024 budget process.
Allocated Charges
Allocated Charges represent expense allocations by the City’s Enterprise and Internal Service
Funds for services and products they provide to General Fund departments. The FY 2023 Adopted
Budget for the General Fund included $22.7 million for these expenses, including utilities usage,
general liability insurance, technology costs, vehicle equipment maintenance and replacement
costs, and other charges for services provided by other City departments and funds. The FY 2024
allocated charges in the Forecast update the revenues and expenses for these various allocations
based on the information available at the time of the Forecast development. FY 2024 is
anticipated to experience an increase of 8.9% to a total of $24.7 million. This increase is primarily
due to anticipated higher costs associated with technology services and utilities for City facilities
such as water, electricity, and gas.
Operating Transfers Out
Operating Transfers Out include transfers from the General Fund to Debt Service Funds, the
Technology Fund, and various other funds but excludes transfers to the Capital Improvement
Fund, which are detailed in the following Transfer to Infrastructure section. The FY 2023 Adopted
Budget included Operating Transfers Out of $5.0 million. In FY 2024, Operating Transfers Out are
anticipated to decrease to $4.6 million due to the elimination of funding for a one-time loan of
$0.4 million to the residential parking permit fund in FY 2023. At this time no loans to the parking
permit funds are anticipated as part of the LRFF; however, staff will be evaluating these funds as
part of the FY 2024 budget development and will bring forward recommendations for additional
loans if needed to keep the parking permit funds solvent.
Transfer to Infrastructure
Recovery from the COVID-19 pandemic were reflected in improved revenue levels in the FY 2023
budget compared to the FY 2022 budget. The total General Fund transfer to the Capital
Improvement Fund budgeted in FY 2023 is $17.5 million compared to the $11.9 million
transferred in FY 2022. This is comprised of a $7.8 million base transfer including interest
earnings, and $9.7 million from TOT revenue generated through voter-approved rate increases
and new hotels that is dedicated to the Capital Improvement Fund to support the 2014 Council
Infrastructure Plan, consistent with City Council direction. As the local economy continues to
recover from the COVID-19 pandemic, estimated transfers from TOT revenues in FY 2024 are
currently projected to increase to $10.5 million and the base transfer to increase to $10.8 million
for a total $21.3 million transfer to the Capital Improvement Fund. This forecast continues the
goal established as part of the 2022-2026 Capital Improvement Plan (CIP) to restore the base
portion of this transfer to pre-pandemic levels by FY 2026. This budget category also includes the
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 49 Packet Pg. 421 of 473
separate $1.9 million transfer to the Cubberley Property Infrastructure Fund. This transfer to the
Cubberley Property Infrastructure Fund supports general operating and maintenance needs a the
Cubberley Community Center facility as well as capital improvement projects to maintain and
upkeep the facility.
Item 8
Attachment A_Finance
Committee FY 2024-2033
LRFF, CMR 14629
Item 8: Staff Report Pg. 50 Packet Pg. 422 of 473
Attachment B – FY 2024 Budget Development Guidelines
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1)Develop a structurally balanced budget that brings ongoing revenues and expenses into
alignment. Develop a plan for any structural imbalance to ensure that the City maintains
fiscal sustainability over the short, medium, and long-term.
2)Allocate one-time resources for one-time needs rather than committing one-time
resources to ongoing services. Examine appropriate uses of revenue surpluses that
exceed forecasted levels such as planning for recession needs, restoration needs, and
strategic investments.
3)Ensure appropriate resource allocation for City Council’s existing priorities.
4)Focus on business process redesign to enhance quality, flexibility, and cost-effectiveness
of service delivery (include examining opportunities to streamline, simplify, reorganize,
and reallocate resources to avoid duplication of effort).
5)Explore alternative service delivery models (such as partnerships with non-profits or other
public/private sector groups) to minimize overlap, maximize cost share, and effectively
use resources.
6)Continue to thoroughly analyze non-personnel/equipment/other costs, such as contract
services, for cost savings opportunities or realignment with current needs.
7)Explore the expansion of existing revenue sources or the addition of new revenue
sources, including the alignment of existing charges for services and the opportunity to
establish new fees, when appropriate.
8)Continue to analyze and prioritize resource augmentations, seeking to offset
augmentations with reductions elsewhere for net-zero impacts to the budget whenever
possible; however, ensuring when resource augmentations are added, it is in alignment
with one-time and ongoing forecasted sources.
9)Continue to prioritize proactively funding long term liabilities including but not limited to
debt obligations, pension obligations, and capital infrastructure in accordance with City
policies as approved by Council.
FY 2024 Budget Development Guidelines
Item 8
Attachment B_FY 2024
Budget Policy Guidelines
Item 8: Staff Report Pg. 51 Packet Pg. 423 of 473
Attachment C
Preliminary FY 2024 Utility Rate Forecast
UTILITIES DEPARTMENT
Each year the Utilities Department develops a Financial Plan for the electric, gas, water, and wastewater
utilities. Analogous to the Long-Range Financial Plan for the General Fund, these plans guide utility
budget development and rate setting. Normally preliminary rate projections are discussed by the
Utilities Advisory Commission (UAC) and Finance Committee, followed by formal Financial Plan
recommendations from staff prior to the budget process. This year no preliminary projections were
made due to the sudden retirement of a key staff member. Formal Financial Plan recommendations will
be made in March and April.
Preliminary ranges for July 1, 2023 rate changes are shown below. Costs in all utilities have been
increasing, primarily due to the replacement of aging infrastructure and rapid construction cost
inflation, which are challenges utilities and public agencies across the country are confronting. At the
time of this preliminary development, the state of California has seen unprecedented rainfall and
flooding. Staff are reviewing the impacts of this storm on rate forecasts and will ensure this is factored
into the recommended rate changes for FY 2024. These recommendations are scheduled to be
reviewed in April 2023 by the Finance Committee.
Electric Utility
Tentative July 1, 2023 Rate Change:
•Change from current total FY 2023 rates (incld. hydro rate adjuster): -1% to +1% increase
•Base rate: 12% to 14% increase
At present, staff anticipates little or no change in total Electric rates in FY 2024; this is due to the
decrease/elimination of in the hydroelectric rate adjuster, offset by a 12% to 14% increase in the base
electric rate.
Electric supply purchase costs have risen substantially over the past three years from a combination of
higher market energy prices, greater transmission costs, and lower energy generation from the electric
utility’s hydro resources. Revenues have also declined from lower loads during the COVID-19 pandemic.
By the end of FY 2022 these factors had reduced operating reserve balances below minimum. A
hydroelectric rate adjuster was activated in April 2022 due to decreased hydroelectric output and
increased in December 2022 due to high electric market prices. This adjuster is expected to decrease in
July 2023, but base rates are expected to increase due to long-term increases in electric supply costs and
capital investment related to aging infrastructure and grid modernization. The net effect would be little
or no change in customer bills in FY 2024.
Staff is incorporating a lower long-term forecast for hydroelectric output to stabilize rates during future
droughts, minimizing the types of increases seen in 2022. Staff expects 3% to 8% base rate increases for
FY 2025 to FY 2028, offset by continuing decreases in the hydroelectric rate adjuster, meaning little or
no change to customer bills over the forecast period. In the longer term, load increases are expected to
roughly balance increases in utility costs associated with electrification, leading to only modest increases
in rates.
Gas Utility
Tentative July 1, 2023 Rate Change:
•Change from current total FY 2023 rates (incld. current commodity prices): -14% to 12%
Item 8
Attachment
C_Preliminary Utility Rate
Forecast FY 2024
Item 8: Staff Report Pg. 52 Packet Pg. 424 of 473
Attachment C
Preliminary FY 2024 Utility Rate Forecast
decrease
•Distribution Rate: 7% to 9% increase
Currently, Gas rates are expected to decrease for the average customer in FY 2024. Natural gas prices
are at unprecedented levels in California and other Western states; the gas utility reserves were
severely depleted by an extreme spike in natural gas market prices in FY 2023, which exceeded what
could be passed through to customers. Gas market prices are expected to remain elevated through the
forecast period, though below FY 2023 levels. The decrease in gas commodity costs from FY 2023 to
projected FY 2024 is expected to produce a net decrease in customer bills next year. The decrease in
commodity costs will be partially offset by an estimated 7% to 9% increase related to rising gas utility
operational and capital costs, and the need to begin to replenish reserves. Capital investment rates and
how quickly to refill reserves are major variables being reviewed to finalize rate plans.
Rate increases in the 5% to 9% range are expected over the next three years, while in the longer term
increases of no less than 5% are expected as the City electrifies. The City is considering strategies to
protect those who are unable to take advantage of electrification from excessive gas bills as the
transition proceeds.
Water Utility
Tentative July 1, 2023 Rate Change:
•7% - 14% increase
At this time, Water rates are anticipated to increase 7-14% in FY 2024 as water supply costs remain the
greatest source of uncertainty, and staff will adjust the City’s water supply pass- through rate adjuster in
July 2023 based on the final water supply rate from the City’s water supplier. Palo Alto residents and
businesses have responded to calls for water conservation during the ongoing drought. Recovery is
projected to be slow and as in prior droughts, some conservation is projected to be permanent. Water
supply costs continue to increase due to continuing investment in rehabilitating and seismically
strengthening the Hetch Hetchy system. These factors are leading to the need for rate increases over
the next several years. Staff will use the water utility’s healthy reserve levels to spread increases over
multiple years. Rate increases are expected to be around 3-4% annually long-term after FY 2024.
Wastewater Utility
Tentative July 1, 2023 Rate Change:
•5% - 9% increase
Based on current information, Wastewater rates are anticipated to increase 5-9% in FY 2024 to pay for
infrastructure replacement, including replacing and maintaining sewer lines, and replacing aging
equipment at the City’s Regional Water Quality Control Plant. Staff is evaluating a few rate projection
scenarios, including accelerating the sewer mains replacement rate from 1 mile per year to 2.5 miles per
year beginning in FY 2026 to allow the wastewater utility to replace aging mains before the end of their
life expectancy. This scenario expects 8-9% rate increases over the next four years, and 3-5% in the
outer years. The other scenario delays the accelerated sewer main replacement plan to begin in FY 2028
or later to mitigate the impact of rate increases on customers.
Item 8
Attachment
C_Preliminary Utility Rate
Forecast FY 2024
Item 8: Staff Report Pg. 53 Packet Pg. 425 of 473
Attachment C
Preliminary FY 2024 Utility Rate Forecast
PUBLIC WORKS DEPARTMENT
Each year the Public Works Department evaluates and analyzes the enterprise funds that provide utility
services as part of the budget development and rate setting process. Applicable projections and formal
recommendations are presented to UAC and Finance Committee in alignment with the process the
Utilities Department follows. Preliminary rate changes for July 1, 2023 are shown below.
Stormwater Management Fee
Tentative July 1, 2023 Rate Change:
•4.9% increase
At this time, the Storm Water Management Fee is expected to increase 4.9% in FY 2024 to keep fund
revenues consistent with general cost increases and to provide sufficient funds for planned storm water
management capital and operating expenditures. Implementing a 4.9% increase based on the applicable
Consumer Price Index is lower than the 6% maximum adjustment specified in the voter approved ballot
measure.
Refuse Services
Tentative July 1, 2023 Rate Change:
•3% increase
Refuse rates are anticipated to increase 3% in FY 2024 to provide sufficient funds for increasing
operating expenses and to maintain the long-term health of our Rate Stabilization Reserve. The Refuse
Fund has not adjusted commercial rates since FY 2017 and residential rates since FY 2018. The
anticipated 3% increase across all sectors in FY 2024 will help to mitigate future potential rate
adjustment spikes when the municipal solid waste collection and processing service agreements term
out in FY 2026. Staff anticipates higher operating costs when a new agreement is to be implemented in
FY 2027.
Item 8
Attachment
C_Preliminary Utility Rate
Forecast FY 2024
Item 8: Staff Report Pg. 54 Packet Pg. 426 of 473
Item No. 9. Staff Report Page 1 of 2
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CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: February 6, 2023
TITLE
Biannual Report of Contracts Awarded by the City Manager, Procurement Officer or Other
Designated Employees
RECOMMENDATION
This is an information report, no action is required.
ANALYSIS
Palo Alto Municipal Code (PAMC) Section 2.30.710(a) requires the City Manager to provide a
biannual report to Council consisting of contracts awarded by the City Manager, Procurement
Officer or other designated employees for:
1. Goods contracts $85,000 through $250,000 per year (Attachment A), and
2. Professional and General Services $25,000 through $85,000 and Public Works Contracts
$85,000 through $250,000 per year (Attachment B).
The contracts in Attachment A consist of twenty-three (23) distinct awards for goods, and the
contracts in Attachment B consist of fifty-seven (57) distinct awards for a wide range of services.
These awards are a core element of the efficient and effective provision of services by the City to
our community and reflect extensive coordination and prudent decision-making among
operating departments, the Administrative Services Department, the City Attorney's Office, and
City Clerk's Office.
For informational purposes, Attachment C provides excerpts from the PAMC that set forth the
authority designated by Council to the Procurement Officer to award and sign contracts (PAMC
2.30.200), City Manager to award and sign contracts (PAMC 2.30.210), and exemptions from
competitive solicitation (PAMC 2.30.360 and 2.30.900), as noted for certain contracts listed in
Attachments A and B.
Item 9
Item 9 Staff Report
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Item No. 9. Staff Report Page 1 of 2
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ATTACHMENTS
Attachment A: Goods Contracts Awarded $85,000 through $250,000 per year
Attachment B: Professional and General Services $25,000 through $85,000 per year and Public
Works Contracts $85,000 through $250,000 per year
Attachment C: Excerpts from the Palo Alto Municipal Code
APPROVED BY:
Kiely Nose, Assistant City Manager
Report #: 2301-0754
Item 9
Item 9 Staff Report
Item 9: Staff Report Pg. 2 Packet Pg. 428 of 473
Contract Awarded To Award Date Award Amount
Bidding Exemption or
Number of Bids
Sent/Received
Description
NATIONAL AUTO FLEET GROUP 07/26/2022 $101,429.03 2.30.360 (j)Three (3) new 2022 Ford Ranger SupCab 6' Box
ONE SOURCE DISTRIBUTORS, LLC 08/18/2022 $172,888.81 439/3 Crossarm and Hardware 8 foot Pupi Fiberglass
INTERSTATE TRUCK CENTER LLC 08/22/2022 $237,790.60 2.30.360(j)One(1) new 2022 Saw Truck w International Chassis
TROJAN TECHNOLOGIES GROUP ULC 08/31/2022 $115,141.72 2.30.900 Trojan UV Lamp and System
PB LOADER CORPORATION 09/14/2022 $190,495.39 2.30.360 (j)One(1) new 2023 Isuzu 7 Yard Dump Truck
MADER SUPPLY LLC 09/20/2022 $185,014.48 6/3 URD 50 Kva 4160 X 12470 120/240- Mineral Oil
SAN LEANDRO CHRYSLER DODGE JEEP RAM 09/29/2022 $211,371.52 2.30.360(b2)Four (4) new 2023 Dodge Durango Pursuit Vehicle for Police
SENSUS USA INC 09/30/2022 $91,610.45 1066/13 Meters for AMI project
ONE SOURCE DISTRIBUTORS, LLC 10/13/2022 $99,914.70 4/3 Amphenol connectors
NATIONAL AUTO FLEET GROUP 10/24/2022 $120,292.72 2.30.360(j)Two(2)new 2023 Ford Interceptor AWD for Police
HAYWARD GORDON ULC 10/25/2022 $86,045.06 3/3 Hayward Gordon Bare Pump for PWD
BADGER METER INC 11/02/2022 $152,753.47 2.30.360(e)AMI Water Meters and AMI Dials
GLOBAL RENTAL COMPANY INC 11/04/2022 $123,334.17 2.30.360(b2)AA55 Altec Bucket Truck
INSIGHT PUBLIC SECTOR, INC.11/07/2022 $116,093.72 2.30.360(j)Seven (7) SuperMicro 620C-TN12R-OTO-13 Servers
GOLDEN GATE SYSTEMS 11/18/2022 $111,071.41 2.30.360 (j)Computer Equipment- Laptops and Desktops
NATIONAL AUTO FLEET GROUP 11/18/2022 $160,764.64 2.30.360 (j)Two(2) new 2023 Ford Flatbed Trucks
AXON ENTERPRISE INC 12/27/2022 $185,081.95 2.30.360(j)Taser 7 Hardware, Services, Software and Warranty
OLIN CHLOR ALKALI PRODUCTS 07/07/2022 $197,670.00 92/3 12.5% Bulk Sodium Hypochlorite
ITERIS, INC.07/12/2022 $109,125.00 2.30.360(d)Traffic signal detection equipment
R&B COMPANY 07/12/2022 $105,000.00 2.30.360(d)Pipes, Valves, Fittings
TMT ENTERPRISES INC 07/15/2022 $150,000.00 250/3 Sand, Rock, and Gravel-Year 3
HILL BROTHERS CHEMICAL COMPANY 08/10/2022 $217,083.00 10/3 Magnesium Hydroxide
MINSAIT ACS INC.08/26/2022 $160,000.00 2.30.360(d)Equipment and services in support of the SCADA system
equipment
ATTACHMENT A
Goods Contracts Awarded $85,000 through $250,000 per year
July 1, 2022 through December 31,2022
Page 1 of 1
Item 9
Attachment A Goods Contracts
Awarded $85,000-$250,000
Item 9: Staff Report Pg. 3 Packet Pg. 429 of 473
Contract Awarded To Award Date Award Amount
Bidding Exemption
or Number of Bids
Sent/Received
Description
CDW GOVERNMENT 11/07/2022 $77,566.17 2.30.360(j)CrowdStrike software and services
CINTAS CORPORATION 07/26/2022 $42,000.00 2.30.360(j)Ops/Lab Uniform Rental Svcs
CINTAS CORPORATION 08/02/2022 $50,000.00 2.30.360(j)Uniform Rental WGW OPS
CINTAS CORPORATION 08/04/2022 $25,000.00 2.30.360(j)Electric OPS Uniform Rental
CJW ARCHITECTURE 09/19/2022 $55,353.10 2.30.360(b2)ADA Design Services
CROSS LAND SURVEYING, INC 11/03/2022 $50,000.00 2.30.360(i)Surveying Services
DASHER TECHNOLOGIES 12/01/2022 $79,820.63 2.30.360(j)Network Monitoring tools of SecureWorks
DIABLO BOILER AND STEAM INC 09/14/2022 $49,888.00 4/4 Ventura Unit 1 Boiler Replacement Project
DLT SOLUTIONS LLC 08/29/2022 $37,224.30 3/3 AutoCAD
EDGEWORTH INTEGRATION LLC 12/16/2022 $34,740.69 4/3 Installation of card access on eight stairwell doors at
City Hall
EDWARD MATHEWSON 10/04/2022 $25,000.00 2.30.360(g)Hearing Officer Services
ENERGY AND ENVIRONMENTAL ECONOMICS 09/22/2022 $49,940.00 2.30.360(i)Study for Sustainability and Climate Action Plan
EVOQUA WATER TECHNOLOGIES LLC 08/10/2022 $26,784.32 2.30.360(i)SDW Loadout Bay Odor Control Pilot Test
GE DIGITAL LLC 12/21/2022 $29,759.07 2.300.900 Water Solutions PK 2008-iFIX 5.0 ESig
GOVQA LLC 11/21/2022 $27,950.00 2.30.360(i)PD Subpoena Duces Tecum Module
GRASSROOTS ECOLOGY 12/07/2022 $25,000.00 2.30.360(i)Grassroots Annual Contribution
HERMES ROBOTICS INC 12/14/2022 $35,100.00 1066/3 Parking lot and garage sweeping services
INFO TECH RESEARCH GROUP INC 07/26/2022 $56,160.00 2.30.260 (j)InfoTech Services
INSIGHT PUBLIC SECTOR, INC.10/27/2022 $72,120.00 2.30.360(j)FY23: Precisely Maint & Support for PB
JACKSON LEWIS PC 07/20/2022 $35,000.00 2.30.360(g)Professional legal Services
JACKSON LEWIS PC 07/26/2022 $30,000.00 2.30.360(g)Professional legal services
JARVIS FAY LLP 07/27/2022 $25,000.00 2.30.360(g)Professional legal services
JOHN AND CLAIRE INVESTIGATIONS 09/15/2022 $30,000.00 2.30.360(i)Pre-Employment Background Investigations
ATTACHMENT B
Service Contracts Awarded
Professional and General Services $25,000 through $85,000 per year and Public Works Contracts $85,000 through $250,000 per year
July 1, 2022 through December 31, 2022
Page 1 of 3
Item 9
Attachment B Service Contracts
Awarded $25,000-$85,000
Item 9: Staff Report Pg. 4 Packet Pg. 430 of 473
Contract Awarded To Award Date Award Amount
Bidding Exemption
or Number of Bids
Sent/Received
Description
ATTACHMENT B
Service Contracts Awarded
Professional and General Services $25,000 through $85,000 per year and Public Works Contracts $85,000 through $250,000 per year
July 1, 2022 through December 31, 2022
JOHNSON CONTROLS SECURITY SOLUTIONS 08/03/2022 $28,866.99 3/3 Install 7 card readers, MSC-C
JUNIOR CHEF STARS 07/05/2022 $45,000.00 2.30.360(i)Cooking Instructor Services
KAPLAN KIRSCH & ROCKWELL, LLP 07/13/2022 $25,000.00 2.30.360(g)Professional legal services
KEYSER MARSTON ASSOCIATES 09/22/2022 $40,101.00 2.30.360(i)Housing Element Site Suitability Study
KIS 08/29/2022 $35,956.38 3/3 Barracuda Energize Updates Subscription
KOFF & ASSOCIATES INC 10/27/2022 $50,000.00 2.30.360(i)Class and Comp Study
KOFFLER ELECTRICAL MECHANICAL 10/18/2022 $60,000.00 732/2 Electric Motor Service
LAW OFFICE OF ALAN SELTZER 10/04/2022 $25,000.00 2.30.360(g)Parking Hearing Officer Services
LAW OFFICE OF CLARE M GIBSON 07/11/2022 $50,000.00 2.30.360(g)Professional legal services
LAW OFFICE OF CLARE M GIBSON 07/20/2022 $50,000.00 2.30.360(g)Professional legal services
LAW OFFICE OF CLARE M GIBSON 10/04/2022 $50,000.00 2.30.360(g)Professional legal services
LN CURTIS & SONS 10/21/2022 $115,728.13 2.30.360(d)Rescue Auto Extrication Tools
MICHAEL BAKER INTERNATIONAL INC 11/15/2022 $85,000.00 2.30.360(b2)Community Development Block Grant (CDBG) Program
ONE WORKPLACE L.FERRARI, LLC 12/21/2022 $87,721.06 1185/2 PSB Furniture and Installation Serices
PG&E 07/12/2022 $75,000.00 2.30.360(d)PG&E (Training Services) -Year 3
PIVOT INTERIORS INC.11/29/2022 $150,265.99 2.30.360(j)Herman Miller Office furniture, project management
and assembly services
PREFERRED BENEFIT INSURANCE ADMINS 10/05/2022 $53,122.13 2.30.360(b2)VSP - Aug Sep Oct 2020
PRESTON PIPELINES INFRASTRUCTURE 10/20/2022 $153,230.00 1683/6 East Bayshore Potholing
Rankin Stock Heaberlin O'Neal 08/29/2022 $25,000.00 2.30.360(g)Professional legal services
Rankin Stock Heaberlin O'Neal 12/13/2022 $25,000.00 2.30.360(g)Professional legal services
RINCON CONSULTANTS, INC.09/22/2022 $184,837.10 2.30.360(h)660 University Ave -Environmental Impact Report
RINCON CONSULTANTS, INC.11/29/2022 $97,227.50 2.30.020(b1)3001 El Camino Real -Historical Resource Study
SEDGWICK CLAIMS MANAGEMENT SERVICE 08/26/2022 $85,558.23 2.30.360(b2)Workers' Comp Claims Administration
SEDGWICK CLAIMS MANAGEMENT SERVICE 10/27/2022 $44,000.00 2.30.360(i)Workers' Comp Claims Administration
Page 2 of 3
Item 9
Attachment B Service Contracts
Awarded $25,000-$85,000
Item 9: Staff Report Pg. 5 Packet Pg. 431 of 473
Contract Awarded To Award Date Award Amount
Bidding Exemption
or Number of Bids
Sent/Received
Description
ATTACHMENT B
Service Contracts Awarded
Professional and General Services $25,000 through $85,000 per year and Public Works Contracts $85,000 through $250,000 per year
July 1, 2022 through December 31, 2022
SHERPA GOVERNMENT SOLUTIONS LLC 11/16/2022 $44,260.00 1766/3 Budget Publishing Software
SLOAN SAKAI YEUNG & WONG LLP 08/29/2022 $30,000.00 2.30.360(g)Professional legal services
SOUTH BAY REGIONAL PUBLIC SAFETY 11/29/2022 $49,900.00 2.30.360(i)Joint Fire Academy
STEPHANIE ELIZABETH HUGHES 11/01/2022 $79,820.00 2171/3 Technical Support Services for Water Quality Standards
THE GALECIA GROUP 10/18/2022 $32,500.00 2.30.360(i)Consulting Services for AMH
TMT ENTERPRISES INC 07/29/2022 $80,000.00 70/4 Offhauling Services for PW OPS
TRANSCRIPTION PLUS LLC 11/08/2022 $50,000.00 519/8 Transcription Services
USGS NATIONAL CENTER MS 270 08/01/2022 $62,013.00 2.30.360(n)USGS Agreement-Year 2
VNH BUILDERS 11/03/2022 $187,000.00 1265/1 Lytton Plaza fountain resurfacing
WRA INC 12/13/2022 $79,800.00 2.30.360(b2)Matadero Creek Study
Page 3 of 3
Item 9
Attachment B Service Contracts
Awarded $25,000-$85,000
Item 9: Staff Report Pg. 6 Packet Pg. 432 of 473
ATTACHMENT C
Excerpts from the Palo Alto Municipal Code
Chapter 2.30 – Contracts and Purchasing Procedures
Item 9
Attachment C Excerpts
from PAMC 2.30 -
Contracts and Purchasing
Procedures
Item 9: Staff Report Pg. 7 Packet Pg. 433 of 473
2.30.200 Procurement officer contract award authority.
The Procurement Officer may award and sign the following contracts:
(a)Public Works Contracts. Public works contracts, where the term does not exceed three years,
and the contract priceand any price contingency established for change orders, but excluding sales
tax or use tax, do not exceed $85,000.00 in the first contract year, and do not exceed the sum of
$85,000.00 and any unexpended monies carried forward from a prior contract year, in any subsequent
contract year.
(b)Contracts for Goods. Contracts to purchase goods, where the term does not exceed three
years, and the contract price and any price contingency established for change orders, but excluding
sales tax or use tax, do not exceed $85,000.00 in the first year, and do not exceed the sum of
$85,000.00and any unexpended monies carried forward from a prior contract year, in any subsequent
contract year.
(c)General Services Contracts. General services contracts, where the term does not exceed three
years, and the contract priceand any price contingency established for change orders or additional
services, but excluding sales tax or use tax, do not exceed $85,000.00 in the first contract year, and
do not exceed $85,000.00 and any unexpended monies carried forward from a prior contract year, in
any subsequent contract year.
(d)Professional Services Contracts. Professional services contracts, where the term does not
exceed three years, and the contract price, and any price contingency established for additional
services, but excluding sales tax or use tax, do not exceed the sum of $85,000.00 in the first contract
year, and do not exceed the sum of $85,000.00 and any unexpended monies carried forward from a
prior contract year, in any subsequent contract year.
(e)Software and Hardware Purchase, Licensing, Maintenance and Support Contracts.
Notwithstanding Subsection 2.30.200(c), the Procurement Officer may award and sign contracts other
than general services agreements, including, without limitation, vendor-based standard form hardware
and software purchase and licensing contracts, for the purchase of hardware and software, the
licensing of software, and the maintenance and support of hardware and software, where the term of
licensing or maintenance and support services does not exceed five years and the contract price,
excluding sales tax or use tax, does not exceed $85,000.00 per year in the first contract year and
does not exceed the sum of $85,000.00 and any unexpended monies carried forward from a prior
contract year, in any subsequent contract year. The contracts referred to herein may include contracts
for data storage services, which shall be subject to the city's information security policies, terms,
conditions and other requirements established by the chief information officer with the concurrence
and approval of the City Attorney.
(Ord. 5494 § 9, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)
Item 9
Attachment C Excerpts
from PAMC 2.30 -
Contracts and Purchasing
Procedures
Item 9: Staff Report Pg. 8 Packet Pg. 434 of 473
2.30.210 City Manager contract award authority.
The City Manager may award and sign the following contracts:
(a)Public Works Contracts. Public works contracts, where the term does not exceed three years,
and the contract price and any price contingency established for change orders, but excluding sales
tax or use tax, do not exceed $250,000.00 in the first contract year, and do not exceed the sum of
$250,000.00 and any unexpended monies carried forward from a prior contract year, in any
subsequent contract year.
(b)Contracts for Goods. Contracts to purchase goods, where the term does not exceed three
years and the contract price and any contingency established for change orders, but excluding sales
tax or use tax, do not exceed $250,000.00 in the first contact year, and do not exceed the sum of
$250,000.00 and any unexpended monies carried forward from a prior contract year, in any
subsequent contract year.
(c)General Services Contracts. Contracts for services associated with the leasing or licensing of
personal property other than hardware or software, where the term does not exceed seven years, and
the contract price and any price contingency established for change orders, but excluding sales tax or
use tax, do not exceed $85,000.00 in the first contract year, and do not exceed the sum of $85,000.00
plus any unexpended monies carried forward from a prior contract year, in any subsequent contract
year.
(d)Contracts for Studies and Services Related to Private Development. Professional services
contracts for: (1) the preparation of environmental assessments or other studies deemed necessary
by the director of planning and development services for the processing of applications for private
development projects, or (2) inspection and plan review services deemed necessary by the director of
planning and development services to evaluate conformity of private development projects with
applicable building codes, regardless of the cost or term thereof, provided the applicant for the private
development project agrees, in writing, to bear responsibility for the entire contract cost, and the
contract does not require the expenditure of city funds in any amount.
(e)Rewards. The City Manager may offer and pay rewards where the amount of the reward does
not exceed $25,000.00, in accordance with the procedures of Section 2.30.800.
(f)Emergency Contracts. The City Manager is authorized to expend city funds for emergency
contracts, as defined in Section 2.30.160, without limitation on the contract cost or amount and without
following the contract solicitation and award procedures otherwise required by this chapter, provided
that any procurement of goods and services obtained during an emergency declared by the Federal
Emergency Management Agency shall comply with applicable FEMA Public Assistance Program's
procurement orders, rules, regulations, guidelines and control procedures for cost reimbursement
purposes. Expenditures made during an emergency must be reported to the Council at the next
regular meeting if approval for such expenditures would otherwise have been made by the Council.
The City Manager may issue a verbal report to the Council before a written report is delivered.
(g)Contracts to Rent, Lease, License, Acquire, Transfer or Purchase Interests in Real Property
from Other Parties. Contracts for the rental, leasing, licensing, or purchase by installment interests in
real property from other parties for a term of seven years or less, where the contract price does not
exceed $85,000.00 per year, or to encumber or transfer any interest in real property from other parties
for any term of years. The City Manager may enter into and sign a contract to acquire or purchase an
interest in real property, where the contract price does not exceed $85,000.00.
(h)Contracts to Rent, Lease, or License City Real Property to Other Parties. The authority granted
under this Section is distinct from the authority of the director of community services to grant
individuals and groups permits for the exclusive temporary use of buildings and facilities located in,
and the areas of, city parks and open spaces, as described in Chapter 22.04 of this municipal code or
in the park and open space regulations. The City Manager may award and sign contracts to rent,
Item 9
Attachment C Excerpts
from PAMC 2.30 -
Contracts and Purchasing
Procedures
Item 9: Staff Report Pg. 9 Packet Pg. 435 of 473
lease or license city real property to other parties regardless of the price for a term not exceeding
three years. Notwithstanding the preceding sentence, the City Manager may enter into and sign
contracts for the rental, lease or licensing of real property at the Cubberley Community Center for
terms of up to five years.
(i)Contracts to Provide Municipal Services to other Public Entities or Utilities. A contract to provide
municipal services and functions to any other public agency, public utility or other public entity in any
amount for a term not exceeding three years, provided the contract is in compliance with all Council-
adopted policies covering such contracts. The authority granted herein does not include the authority
of the City Manager to add permanent employee positions.
(j)Contracts Providing for Indemnity or Risk of Loss. The City Manager, with the concurrence and
approval of the City Attorney and the insurance risk manager, may enter into and sign contracts,
otherwise within the limits of his or her authority under Section 2.08.140 of this municipal code, that
provide for the city or its officers or employees to defend, indemnify, or assume the risk of damage,
loss, or liability for, or subrogate to any other contracting party respecting claims, demands, actions,
losses or liabilities arising from the city's performance or non-performance under the contract.
(k)Wholesale Utility Commodities and Services Contracts. Wholesale utility commodities and
services contracts, where the term does not exceed five years and the contract price does not exceed
$250,000.00 in any contract year.
(l)Software and Hardware Purchase, Licensing, Maintenance and Support Contracts.
Notwithstanding Subsection 2.30.210(c), the City Manager may award and sign contracts other than
general services agreements, including, without limitation, vendor-based standard form hardware and
software purchase and licensing contracts, for the purchase of hardware and software, the licensing of
software, and the maintenance and support of hardware and software, where the term of licensing or
maintenance and support services does not exceed seven years and the contract price, excluding
sales tax or use tax, does not exceed $85,000.00 per year in the first contract or fiscal year and does
not exceed the sum of $85,000.00 and any unexpended monies carried forward from a prior fiscal
year, in any subsequent contract or fiscal year. The contracts referred to herein may include contracts
for data storage services, which shall be subject to the city's information security policies, terms,
conditions and other requirements established by the chief information officer with the concurrence
and approval of the City Attorney.
(m)Other Contracts. All other types of contracts for which the contract term does not exceed three
years and the total expenditure by the city does not exceed $85,000.00 in the first contract or fiscal
year, and does not exceed the sum of $85,000.00 and any unexpended monies carried forward from a
prior fiscal year, in any subsequent contract or fiscal year.
(Ord. 5494 §§ 3, 10, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)
Item 9
Attachment C Excerpts
from PAMC 2.30 -
Contracts and Purchasing
Procedures
Item 9: Staff Report Pg. 10 Packet Pg. 436 of 473
2.30.360 Exemptions from competitive solicitation requirements.
The following are exemptions from the informal and formal competitive solicitation requirements of
this chapter, except as otherwise provided. These exemptions will be narrowly interpreted and applied.
The department requesting an exemption shall provide all relevant information supporting the
application of the exemption to the Procurement Officer. Based upon this information, the
Procurement Officer shall make a recommendation to the City Manager and the City Manager shall
determine whether an exemption from the competitive solicitation requirements applies. Nothing
herein is intended to preclude the use of competitive solicitations, as practicable.
(a)Emergency Contracts, provided that any procurement of goods and services obtained during an
emergency declared by the Federal Emergency Management Agency shall comply with applicable
FEMA Public Assistance Program's orders, rules, regulations, guidelines and control procedures for
cost reimbursement purposes.
(b)Whenever solicitations of bids or proposals would for any reason be impracticable, unavailing or
impossible, provided that in the case of a public works project, the project is not otherwise required by
the charter to be formally bid. These situations are those where solicitations of bids or proposals
would not be useful or produce any operational or financial advantage for the city. Situations where
solicitations of bids or proposals would be impracticable, unavailing or impossible, include, without
limitation, the following:
(1)Contract specifications cannot be drawn in a way that would enable more than one vendor,
consultant or contractor to meet them;
(2)Due to circumstances beyond the control of the city, the time necessary to use the competitive
solicitation process, procedures and requirements would result in a substantial economic loss to the
city or the substantial interference with a required city operation;
(3)Special conditions attached to a grant, donation or gift requires the use of particular goods
and/or services.
All requests for exemptions under this subsection shall be supported by written documentation
(facsimile or electronic mail may be used), approved by the department head and the Procurement
Officer.
(c)Where competitive bids or requests for proposals have been solicited and no bid or proposal
has been received, or where no bid or proposal meeting the requirements of the invitation to bid or
request for proposals has been received, provided that, in the case of a public works project, the
project is not otherwise required by the charter to be formally bid.
(d)Contracts for goods, wholesale commodities and services, general services or professional
services available from only one source, where the Procurement Officer has determined, in writing,
there is no adequate substitute or equivalent provider. Examples of acceptable sole source
acquisitions or purchases may include, without limitation: equipment or services for equipment, for
which there is no comparable competitive product or service except that provided by the equipment
manufacturer, distributor or dealer; proprietary products sold directly by the manufacturer; a
component or replacement part, for which there is no commercially available substitute and which can
be obtained only from the manufacturer; goods where there is only one authorized distributor in the
area; and goods where compatibility with goods in use by the city is an overriding consideration. All
requests for sole source acquisitions or purchases shall be supported by written documentation
(facsimile or electronic mail may be used), approved by the office or department head, and forwarded
to the Procurement Officer.
(e)Contracts for goods where, pursuant to Section 2.30.900, the City Manager has determined that
standardization of the supplies, materials or equipment is permissible.
(f)Placement of insurance coverage and surety bonds.
Item 9
Attachment C Excerpts
from PAMC 2.30 -
Contracts and Purchasing
Procedures
Item 9: Staff Report Pg. 11 Packet Pg. 437 of 473
(g)Legal services contracts, including, without limitation, the services of outside counsel,
consultants and other experts needed for litigation, administrative or other legal proceedings.
(h)Professional services contracts for private development related studies and services whenever
the services are funded wholly by private developers.
(i)Professional services contracts, where the estimated total expenditure by the city, regardless of
term, does not exceed $50,000.00.
(j)Cooperative purchases, with one or more other public agencies or through a cooperative
purchasing agency, provided: (i) the services are solicited using methods substantially similar to those
required by this chapter, as determined by the Procurement Officer; and (ii) the contract is consistent
with the requirements specified in this municipal code.
(k)The use of another governmental or public agency's contract or substantially the same contract
terms provided: (i) the agency uses a solicitation method substantially similar to the method required
by this chapter; (ii) the contract is consistent with the requirements specified in this municipal code;
and (iii) the Procurement Officer determines that the city will realize overall value to utilizing the other
agency's contract or contract terms compared to the city performing its own solicitation.
(l)Contracts with, or solicited on the city's behalf by, Northern California Power Agency,
Transmission Agency of Northern California, and Western Area Power Administration to procure
wholesale utility commodities and services that meet the requirements of Section 2.30.340(d) or
2.30.360(k).
(m)Contracts with Pacific Gas and Electric Company and the California Independent System
Operator Corporation for energy transmission services to the extent necessary and expedient to
provide for the general health, safety and welfare of the city's utility customers.
(n)Contracts with any public agency or governmental body to construct a public work, where the
Procurement Officer determines the public agency or governmental body has used methods similar to
those required by this chapter to contract for the public work.
(o)Contracts with any public utility holding a certificate of public convenience and necessity or any
entity holding a cable service or video service franchise pursuant to chapter 2.10 of this municipal
code to construct a public works, where such works involves property of such public utility or cable
service or video service franchisee and is otherwise of direct concern to both the city and such public
utility or cable service or video service franchisee, provided that the project is not otherwise required
by the charter to be formally bid.
(p)Contracts with private developers to construct public improvements in connection with their
development projects, even if the city contributes funds to the improvement project, provided that the
projects are not otherwise required by the charter to be formally bid.
(q)Projects, where the public work is performed by the city with its own employees.
(r)Contracts, where the estimated total expenditure by the city does not exceed $10,000.00.
(s)Contracts with entities to procure at wholesale prices utility commodities and services under a
city "feed-in tariff" energy program that meets the requirements of Section 2.30.340(c).
(t)Professional services contracts in relation to personnel matters for: recruitment consultants,
workplace investigations, threat assessments, conflict intervention, and industrial safety.
(Ord. 5494 § 21, 2020: Ord. 5387 § 1 (part), 2016: Ord. 5148 § 2, 2012: Ord. 5081 § 1, 2010: Ord.
4827 § 1 (part), 2004)
Item 9
Attachment C Excerpts
from PAMC 2.30 -
Contracts and Purchasing
Procedures
Item 9: Staff Report Pg. 12 Packet Pg. 438 of 473
PART 10 – STANDARDIZATION
2.30.900 Standardization.
Where the City Manager has determined that it is required by the health, safety or welfare of the
people or employees of the city, or that significant costs savings have been demonstrated, the
standardization of supplies, materials or equipment, including, without limitation, information
technology property, for purchase or to be used in a public works project is permitted and the supplies,
materials or equipment specifications may specify a single brand or trade name. The City Manager
may consider the following factors in determining to standardize on a single brand or trade name:
(a)Repair and maintenance costs would be minimized;
(b)User personnel training would be facilitated thereby;
(c)Supplies or spare parts would be minimized;
(d)Modifications to existing equipment would not be necessary;
(e)Training of repair and maintenance personnel would be minimized; and
(f)Matching existing supplies, materials or equipment is required for proper operation of a function
or program.
(Ord. 5494 § 40, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)
Item 9
Attachment C Excerpts
from PAMC 2.30 -
Contracts and Purchasing
Procedures
Item 9: Staff Report Pg. 13 Packet Pg. 439 of 473
1 www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-
council-agendas-minutes/2022/20220205/20220205pccsm-retreat.pdf
Item No. 10. Staff Report Page 1 of 2
1
6
6
4
CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: City Manager
Meeting Date: February 6, 2023
TITLE
2022 City Council Priorities- Major Project Quarterly Update
INFORMATION
This is an informational report; no action is needed. This report provides progress updates on
the 2022 City Council Priorities and associated workplan elements approved by the City Council
in April 2022.
BACKGROUND
Each year, the City Council reviews its priorities for the upcoming calendar year at its annual
Council Retreat. A Council priority is defined as a topic that will receive significant attention
during the year. The Palo Alto City Council convened to set its 2022 priorities on February 5,
20221, informed in part by community feedback through an online survey, e-mails to
Councilmembers, and public participation during the City Council retreat. The City Council
adopted four priorities for 2022, including:
• Economic Recovery and Transition (ERT),
• Climate Change - Protection and Adaptation (CCPA),
• Housing for Social and Economic Balance (HSEB), and
• Community Health and Safety (CHS).
The major workplan elements for each priority are listed in Attachment A, individual project
progress updates can be found in Attachment B. These workplan elements, or “major projects”,
provide context and enumerate the efforts underway to advance Council priorities. In addition
to these major projects, there is a great deal of work being completed on other high-priority
projects as directed by the City Council in addition to delivering 24/7 core services. In this time
of resource challenges, the City continues to focus on maintaining core city services and
managing the vulnerabilities and risks associated with available resources while pursuing the
major projects listed in this report.
Item 10
Item 10 Staff Report (1)
Item 10: Staff Report Pg. 1 Packet Pg. 440 of 473
2 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/city-council-agendas-minutes/2022/20220404/20220404pccsmamendedlinked1.pdf
1
5
7
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ANALYSIS
Based on the City Council’s four 2022 adopted priorities, the following discussion presents the
major workplan elements involved. The attached status update tracking table includes the
following columns:
• Project Target Start- indicates in which calendar quarter the project is targeted
to begin.
• Project Status- indicates whether a project is substantially complete, ongoing, not started,
behind schedule, or dropped. Dropped projects may no longer be feasible or relevant.
• Next Review Target Date- indicates in which calendar quarter the project can be expected to
be reviewed by a legislative body.
• Not Yet Resourced- Projects not yet resourced are still considered priorities but resources are
not currently available or are otherwise “on hold.”
While actual completion dates will vary, the workplan communicates the breadth and volume
of concurrent activities. Projects that have been identified as priorities but where resources are
not currently available will be considered as opportunities for new resources arise. A summary
update on each project can be found in Attachment B. The numbering of the major projects is
consistent with the numbering presented and approved by the City Council on April 4, 20222 for
ease of tracking through the two documents. Of the 65 identified major projects supporting
Council priorities, 14 have been completed, 38 are ongoing, 10 are either behind schedule or
not started, and 3 have been placed on hold or dropped.
Completed Ongoing Behind
Sched/ Not
Started
On Hold/
Dropped
Total
ERT: Economic Recovery &
Transition
3 8 0 2 13
CCPA: Climate Change
Protection & Adaptation
2 6 0 0 8
HSEB: Housing for Social &
Economic Balance
7 7 9 1 24
CHS: Community Health &
Safety
2 17 1 0 20
TOTAL 14 38 10 3 65
Item 10
Item 10 Staff Report (1)
Item 10: Staff Report Pg. 2 Packet Pg. 441 of 473
2 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/city-council-agendas-minutes/2022/20220404/20220404pccsmamendedlinked1.pdf
1
5
7
7
FISCAL/RESOURCE IMPACT
Although there are no additional direct resource impacts for the projects described as occurring
during the 2022 calendar year, several projects in this report are identified as either not yet
being resourced or temporarily ‘on hold’. To appropriate resources for such projects, staff
would need to be reallocated from existing work to those projects and additional appropriation
actions would likely be necessary.
STAKEHOLDER ENGAGEMENT
The City Council received and provided input on community engagement plans furthering
Council priority workplans in March 20223. Council input was incorporated into final plans for
calendar year 2022. Staff anticipates returning to the City Council in March 2023 with
community engagement plans based on Council adoption of new 2023 Priorities. The status
report in the attachment includes various levels of community engagement and
communications, based on each distinct project within each priority area.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by the California Environmental Quality
Act (CEQA) because the process for Council Priority-Major Project Updates is a continuing
administrative or maintenance activity. CEQA Guidelines section 15378(b)(2).
ATTACHMENTS
Attachment A:
APPROVED BY:
Ed Shikada, City Manager
Report #: 2301-0822
3https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/city-council-agendas-minutes/2022/20220314/20220314pccsm-amended-final-
revised-ppt.pdf
Item 10
Item 10 Staff Report (1)
Item 10: Staff Report Pg. 3 Packet Pg. 442 of 473
Attachment A: 2022 Major Project Status by Council Priority
Calendar Year (CY) 2022 City Council Priorities: Major Projects by Priority Area
Targ
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Resourced
Priority Area, Project Number, and Project Name
ERT ‐ ECONOMIC RECOVERY AND TRANSITION
CY23Q1/Q2 On Hold CY23Q2 FC ‐ERT001 ERT1. Downtown Business Improvement District (BID)
Pre‐CY22 Completed ‐ERT002 ERT2. Economic Development Request for Proposal (RFP)
CY22Q1/Q2 Ongoing CY23Q2 ‐ERT003 ERT3. Economic Development Committees for Downtown and California Avenue
CY22Q3/Q4 Completed CY24Q2 ‐ERT004 ERT4. Retail and Retail‐Like Land Uses and CUP Thresholds (to be merged w/ERT12)
CY22Q1/Q2 Ongoing CY23Q3 PTC ‐ERT005 ERT5. University Avenue Streetscape Design Project
CY22Q1/Q2 Ongoing CY223Q1 CC ‐ERT006 ERT6. California Avenue Closure and feasibility study (Car‐Free Streets)
CY22Q1/Q2 Ongoing CY23Q1 CC ‐ERT007 ERT7. Ramona Street Closure and feasibility study (Car‐Free Streets)
Pre‐CY22 Ongoing ‐ERT008 ERT8. Build Out Fiber Backbone as Foundation for Fiber‐to‐the‐Premises (FTTP)
CY22Q3/Q4 Ongoing CY23Q3 CC ‐ERT009 ERT9. Electronic Plan Review RFP to integrate with Accela
CY22Q3/Q4 Completed CY23Q2 CC ERT010 ERT10. Development of New Parking Facilities in the University Avenue Downtown (potential BMH site)
On Hold ERT011 ERT11. California Avenue Subscription Parking Program (Commercial Uses)
CY22Q3/Q4 Ongoing CY24Q2 CC ERT012 ERT12. Citywide Retail Recovery Ordinance
CY22Q1/Q2 Ongoing CY24Q2 PTC ERT013 ERT13. Retail Preservation (merge w/ERT12)
CCAP ‐ CLIMATE CHANGE: PROTECTION AND ADAPTATION
CY22Q3/Q4 Ongoing CY23Q2 CC ‐CCPA001 CCPA1. Municipal Code Amendments to Facilitate PV, ESS, EVCS and Heat Pump (Water/Furnace) Installations (see
CY22Q1/Q2 Ongoing ‐CCPA002 CCPA2. Permit/Inspection Streamlining for Electrification Projects (see also CCPA001 & 005)
Pre‐CY22 Ongoing CY23Q1 CC ‐CCPA003 CCPA3. Valley Water Purified Water Facility at LATP Area B
CY22Q1/Q2 Ongoing CY23Q1 CC ‐CCPA004 CCPA4. Sustainability/Climate Action Plan (S/CAP) update
CY22Q1/Q2 Completed CY23Q2 CC ‐CCPA005 CCPA5. Residential Home Electrification Strategy (see also CCPA001 & 002)
CY22Q1/Q2 Ongoing CY23Q1 UAC ‐CCPA006 CCPA6. Grid Modernization to Prepare for Electrification
CY23Q1/Q2 Ongoing CY23Q2 CC ‐CCPA007 CCPA7. Advanced Metering Infrastructure (AMI)
CY23Q1/Q2 Completed CY23Q2 CC ‐CCPA008 CCPA8. Commercial Electrification Retrofit
HSEB ‐ HOUSING FOR SOCIAL AND ECONOMIC BALANCE
Pre‐CY22 Completed ‐HSEB001 HSEB1. HomeKey Application
CY22Q1/Q2 Completed ‐HSEB002 HSEB2. Parking in Lieu Downtown Office Parking Ban
CY22Q1/Q2 Completed ‐HSEB003 HSEB3. SB35 Objective Standards Ordinance
Pre‐CY22 Ongoing CY23Q4 CC ‐HSEB004 HSEB4. North Ventura Coordinated Area Plan (NVCAP)
CY22Q1/Q2 Ongoing CY23Q2 PTC ‐HSEB005 HSEB5. Housing Element Update
Pre‐CY22 Ongoing HSEB006 HSEB6. Respond to Grand Jury Recommendations 9b, 10a, 12b
CY22Q1/Q2 Completed ‐HSEB007 HSEB7. SB‐9 Urban Lot Split Interim Ordinance / SB‐9 Historic Resources Policy Discussion & Follow‐up Action
CY22Q1/Q2 Completed ‐HSEB008 HSEB8. City/Sobrato Ad Hoc Discussion Regarding 340 Portage (& Related Code Interpretation)
CY22Q1/Q2 Ongoing CY23Q2 CC ‐HSEB009 HSEB9. Accessory Dwelling Unit Regulations (Ordinance Update)
CY22Q1/Q2 Behind CY23Q3 CC ‐HSEB010 HSEB10. Downtown Housing Master Plan
CY22Q1/Q2 Completed ‐HSEB011 HSEB11. Renter Protection ‐ Tenant Relocation Assistance
Pre‐CY22 Completed ‐HSEB012 HSEB12. Safe Parking Program Pilot Program
CY22Q3/Q4 Ongoing ‐HSEB013 HSEB13. LifeMoves Operating/Lease Agreement
Pre‐CY22 Not Started ‐HSEB014 HSEB14. SB‐9 Permanent Ordinance (Objective Standards / Urban Lot Splits)
CY22Q3/Q4 Ongoing CY23Q2 CC ‐HSEB015 HSEB15. Renter Protection ‐ Rental Registry
Pre‐CY22 Not Started X HSEB016 HSEB16. Renter Protection ‐ Just Cause Eviction
Pre‐CY22 Not Started CY23Q2 CC HSEB017 HSEB17. Grand Jury Report Recommendation #3
CY23Q3/Q4 Not Started X HSEB018 HSEB18. Retail and Residential Parking Adjustment
CY23Q3/Q4 Not Started X HSEB019 HSEB19. PHZ/PC Amendment to Allow Greater Height
CY23Q3/Q4 Not Started X HSEB020 HSEB20. Inclusionary Housing Program
CY23Q3/Q4 Not Started X HSEB021 HSEB21. Streamline Application Pre‐Screening Processing
CY23Q3/Q4 Not Started X HSEB022 HSEB22. Commerical Office Zoning Adjustments
Dropped X HSEB023 HSEB23. Residential Zoning Name Change
CY23Q3/Q4 Ongoing CY23Q4 CC HSEB024 HSEB24. Grand Jury Report Recommendations #4 and #8
CHS ‐ COMMUNITY HEALTH AND SAFETY
CY22Q1/Q2 Ongoing CY23Q1 CC ‐CHS001 CHS1. Palo Alto Animal Shelter Services Review
CY22Q1/Q2 Ongoing ‐CHS002 CHS2. Cubberley Next Steps
CY22Q1/Q2 Ongoing ‐CHS003 CHS3. Improve Fire Safety in Foothills
CY22Q3/Q4 Ongoing CY23Q2 CC ‐CHS004 CHS4. Computer Aided Dispatch (CAD) Upgrade
CY22Q1/Q2 Ongoing ‐CHS005 CHS5. Complete Reopening of Libraries
CY22Q3/Q4 Ongoing ‐CHS006 CHS6. Hire Ahead up to Five Police Officers
Pre‐CY22 Completed ‐CHS007 CHS7. Rinconada Park Improvement Project
CY22Q1/Q2 Completed ‐CHS008 CHS8. Tree Protection Ordinance Update
Pre‐CY22 Ongoing CY23Q1 CC ‐CHS009 CHS9. Public Safety Building Capital Project
CY22Q1/Q2 Ongoing CY23Q1 CC CHS010 CHS10. Newell Road Bridge Replacement (PE‐12011)
Pre‐CY22 Ongoing CHS011 CHS11. Monitor and Respond to SFO/FAA Airplane Noise Issues
CY22Q1/Q2 Ongoing CY23Q1 CC CHS012 CHS12. Provide and Promote Use of Unleaded Fuel at Palo Alto Airport
Pre‐CY22 Ongoing ‐CHS013 CHS13. Sewer System Replacement Project 30
CY22Q1/Q2 Ongoing CY23Q1 CC CHS014 CHS14. Evaluate Gym Feasibility
CY22Q3/Q4 Ongoing CY23Q3 CC ‐CHS015 CHS15. Emergency Plans Updates
CY22Q3/Q4 Ongoing CY23Q1 CC ‐CHS016 CHS16. Gas‐Powered Leaf Blower Amendment
CY22Q1/Q2 Ongoing CY23Q1 ARB ‐CHS017 CHS17. Fire Station 4 Project
CY22Q1/Q2 Ongoing ‐CHS018 CHS18. Sewer System Laterals Repair and Replacement throughout the City
CY22Q1/Q2 Ongoing ‐CHS019 CHS19. Water Main Replacement Project 28
CY23Q1/Q2 Not Started X CHS020 CHS20. Seismic and Resiliency Ordinance
Total (65)
Item 10
Attachment A - 2022
Major Project Status by
Priority
Item 10: Staff Report Pg. 4 Packet Pg. 443 of 473
Major Project Progress by Council Priority
ERT - ECONOMIC RECOVERY AND TRANSITION
ERT1. Downtown Business Improvement District (BID)
Status: On Hold Progress: 30%
Project: Work with the Chamber of Commerce and Palo Alto Downtown Business and Professional
Association (PADBPA) on the FY 2023 program and transfer of BID management.
Update: This item is currently on hold pending discussion of desired use of funds by the BID with the
business community. Once that is resolved, Staff will resume work on this item. Staff anticipates working
in partnership with the Chamber to re-establish support for the BID, explore options for the future of
BID management, and re-instituting the BID levy. On June 6, 2022 Council voted not to levy assessments
against businesses within the Downtown Palo Alto Business Improvement District for FY 2023.
ERT2. Economic Development Request for Proposal (RFP)
Status: Completed Progress: 100%
Project: Complete a Request for Proposal (RFP) for economic development studies in alignment with the
draft scope approved by the City Council in 2021.
Update: The contract for the development of a near-term and longer-term Economic Development
Strategy was brought before the City Council on September 12, 2022 and approved unanimously.
Streetsense was the firm selected. Streetsense participated in a study session with the City Council on
November 7 and will be returning for an additional study session to discuss next steps in the
establishment of a Comprehensive Economic Development Strategy in February 2023.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 5 Packet Pg. 444 of 473
ERT3. Economic Development Committees for Downtown and California Avenue
Status: On Track Progress: 60%
Project: Collaboratively partner with the Palo Alto Chamber of Commerce to create and support
committees focused on economic development for the Downtown and California Avenue commercial
cores.
Update: Staff is working on the establishment of Economic Development Committees, one focused on
the University Avenue downtown area and another for the California Avenue area. Outreach to
potential members of the committees was conducted in 2022, and work to establish a regular roster of
participants and cadence for meetings continues.
ERT4. Retail and Retail-Like Land Uses and Conditional Use Permit (CUP) Thresholds
Status: Completed Progress: 100%
Project: Codify interim retail ordinance regulations with minor modifications related to permitted and
conditionally permitted retail land use.
Update: City Council extended the interim ordinance through June 2024 and directed the alignment of
this effort to coincide with ERT12, these are now combined into one project.
ERT5. University Avenue Streetscape Design Project
Status: On Track Progress: 20%
Project: Complete data collection, develop concept alternatives, and prepare cost estimates, while
implementing the community engagement strategy approved by Council in the consultant contract.
Update: Staff has completed data collection and field surveys and has begun community engagement
with focus group meetings and initial concept development. Staff is planning additional outreach,
community workshops, concept alternatives development and preliminary cost estimates in the next
few months.
ERT6. California Avenue Closure (Car-Free Streets)
Status: On Track Progress: 50%
Project: Council has asked staff to return with a short-term recommendation on an interim design
strategy for California Avenue to explore whether the streets should remain closed or should open to
vehicular traffic. A longer-term recommendation is pending a consultant feasibility study.
Update: Work on a short-term recommendation on an interim design strategy is underway, and staff
anticipates returning to City Council with a progress update in the first quarter of calendar year 2023.
This update will include results of preliminary community engagement completed to date. A longer-term
recommendation is anticipated after evaluating the impacts of interim design changes.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 6 Packet Pg. 445 of 473
ERT7. Ramona Street Closure (Car-Free Streets)
Status: On Track Progress: 50%
Project: Council has also asked staff to return with a short-term recommendation on whether Ramona
should remain closed or should open to vehicular traffic. A longer-term recommendation for Ramona is
also pending a consultant feasibility study.
Update: Staff anticipates that the work for Ramona will be in tandem with the work for California Ave.,
building on lessons learned from the pandemic and preliminary engagement. As with California Ave.,
this work is underway, and staff anticipates returning to City Council with a progress update in early
2023. This update will include results of preliminary community engagement completed to date. A
longer-term recommendation is anticipated after evaluating the impacts of interim design changes.
ERT8. Build Out Fiber Backbone as Foundation for Fiber-to-the-Premises (FTTP)
Status: On Track Progress: 25%
Project: Explore FTTP effort by engaging Palo Alto residents and businesses to understand the value
placed on broadband and fiber, report on survey results and other engagement completed and provide
recommendations on next steps.
Update: Staff gained Council input in August 2022 and presented options for next steps to the Utilities
Advisory Commission on November 2, 2022. Staff incorporated their feedback and direction into the
discussion at City Council on December 19, 2022. The City Council approved moving forward with FTTP
on December 19, 2022, and staff is currently working through the necessary resources to implement
Council direction.
ERT9. Electronic Plan Review RFP to integrate with Accela
Status: On Track Progress: 65%
Project: Conduct a Request for Proposals (RFP) to secure a vendor to provide electronic plan review
services that integrates with the City's Accela permitting system.
Update: A Request for Proposals (RFP) was posted on August 22, 2022; vendor selection is targeted for
the end of February 2023. Extension of existing Electronic Plan Review software was approved through
end of 2023. The City Council action to award the new contract is expected to be brought forward in
late Fiscal Year 2023.
ERT10. Development of New Parking Facilities in the University Avenue Downtown (potential BMR
site)
Status: Completed Progress: 100%
Project: Issue a Request for Information (RFI) from private partners regarding development of parking
using parking in-lieu fees; potentially in conjunction with an affordable housing project, as directed by
the City Council December 6, 2021 (CMR #13633).
Update: Staff issued a Request for Information (RFI) on December 28, 2022
(https://pbsystem.planetbids.com/portal/25569/bo/bo-detail/100949). This RFI will close on March 7,
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 7 Packet Pg. 446 of 473
2023. After submitted packages are evaluated, staff will return to the City Council in the Spring 2023
with an evaluation of the responses and discussion of next steps.
ERT11. California Avenue Subscription Parking Program (Commercial Uses)
Status: On Hold Progress: 0%
Project: Explore opportunities to allow for some intensification of land uses along California Avenue
using a new subscription-based program. Such a program would be subject to available public parking
resources in the California Avenue area and designed to alleviate parking construction requirements on
businesses in the California Avenue area.
Update: Staff is evaluating the need for this program in light of recent changes to State law (AB 2097).
New commercial and residential land uses on California Avenue within ½ mile of qualifying public transit
(Caltrain) are exempt from parking requirements. Staff is reviewing the law to confirm that a change in
land use to a more intensive parking requirement qualifies as exempt under the law.
ERT12. Citywide Retail Recovery Ordinance
Status: On Track Progress: 25%
Project: Direction to staff and the Planning and Transportation Commission (PTC) to quickly evaluate
and propose changes to enable Diverse Retail Uses in more retail sites, including food, medical,
educational, financial, and professional office uses citywide or by district, and evaluate ways the City can
curate a strong retail mix.
Update: As part of the development of a comprehensive economic development strategy (ERT2),
Streetsense will conduct a retail market analysis. Data gathering, including stakeholder interviews, are
underway. The report will outline retail best practices and recommendations and is expected to be
completed in the summer of 2023. In addition to Streetsense, Michael Baker International consulting
firm is also concluding its findings on retail preservation and commercial district-level specific retail
recommendations. As this work develops, next steps will include returning with draft regulations for
Planning and Transportation Commission (PTC) and Council review.
ERT13. Retail Preservation
Status: On Track Progress: 25%
Project: Direction to staff and the PTC to evaluate and propose the geography of the Retail Preservation
ordinance.
Update: As part of the Citywide Retail and Recovery effort, a consultant is reviewing the City’s retail
preservation policy and identifying potential implications that support or hinder the City’s policy
interests and recommendations for change as appropriate. Consultant work is underway and expected
to be shared with the PTC by end of the second quarter of 2023.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 8 Packet Pg. 447 of 473
CCAP - CLIMATE CHANGE: PROTECTION AND ADAPTATION
CCPA1. Municipal Code Amendments to Facilitate PV, ESS, EVCS and Heat Pump (Water/Furnace)
Installations
Status: On Track Progress: 75%
Project: Identify municipal code amendments that may impede installation of electrification systems and
recommend changes after public review before the Utilities Advisory Commission (UAC) and Planning
and Transportation Commission (PTC) and transmit recommendations to the City Council.
Update: PTC reviewed the recommendation in December 2022, and it will be considered by Council in
March/April 2023.
CCPA2. Permit/Inspection Streamlining for Electrification Projects
Status: On Track Progress: 75%
Project: Implement a variety of measures to streamline application processing and ensure consistency in
plan review and inspection services.
Update: On January 10, 2022, Council adopted procedures for streamlining application review for
Electric Vehicle Charging Stations (EVCS) and they have been posted to the website. Implementation of
the Solar App+ Pilot Program launched in 2022 and the online heat pump water heater replacement
permit for single family homes launched in 2023. Staff anticipates making additional application and
inspection checklists available this year, as well as further refinements to the permitting process and
more information posted to the website. For the City’s new electrification checklists and residential
electrification portal, go to www.cityofpaloalto.org/goelectric. Staff continues to share these resources
with the community to encourage switching to electric appliances and other home efficiencies to reduce
greenhouse gas emissions, and further the City’s climate action goals.
CCPA3. Valley Water Purified Water Facility at LATP Area B
Status: On Track Progress: 20%
Project: In partnership with Valley Water, discuss the project at a Council study session, and negotiate
agreements between the City and Valley Water necessary for the project to proceed.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 9 Packet Pg. 448 of 473
Update: A Council study session was held on September 22, 2022, to provide a status update on the
City’s efforts with Valley Water and the City of Mountain View. The purpose of the project is to improve
the quality of recycled water produced by the City and increase water reuse at the regional level. In
early 2023, staff will return to Council with the related funding and draft lease agreements.
CCPA4. Sustainability/Climate Action Plan (S/CAP) update
Status: On Track Progress: 95%
Project: Conclude the work of the S/CAP Ad Hoc Committee and complete the S/CAP update in fall 2022,
with Council approval of the S/CAP Goals and Key Actions and strategy for residential electrification and
expected Council adoption of the full S/CAP update and CEQA document in spring 2023.
Update: Council meetings on September 27, 2022, and October 3, 2022, included comprehensive
discussions on the S/CAP update and the S/CAP Ad Hoc Committee’s work and recommendations,
including results of community engagement efforts to date. Council accepted the full set of the draft
S/CAP Goals and Key Actions; approved multiple actions allowing the new Advanced Heat Pump Water
Heater Pilot Program to commence; and adopted a new goal to achieve carbon neutrality by 2030. Staff
is working to complete CEQA review of the S/CAP and will bring a 3-Year Workplan to Council for
approval in the Spring of 2023.
CCPA5. Residential Home Electrification Strategy
Status: Completed Progress: 100%
Project: In parallel with the overall S/CAP process, the S/CAP Ad Hoc Committee and four working group
teams will develop a strategy to advance residential electrification for Council’s approval and begin
implementation of a pilot program by late 2022.
Update: Implementation is underway for the Advanced Heat Pump Water Heater program, with a goal
of 1,000 units by the end of 2023. As a preliminary step to gain interest in this pilot program, staff
continues to implement initial community engagement and communications efforts, including an
interest form for the program. To date over 200 residents have submitted their interest in the pilot
program. Staff and the S/CAP Ad Hoc Committee will be presenting Council additional residential
electrification activities for 2023-2025 in the Spring of 2023.
CCPA6. Grid Modernization to Prepare for Electrification
Status: On Track Progress: 70%
Project: Staff anticipates providing an update during the first half of 2022 for the City’s planned grid
modernization including the development of the systematic grid modernization project and
incorporation of Goals and Key Actions for preparing the grid for widespread electrification in support of
the S/CAP goal of an 80 percent carbon reduction by 2030.
Update: The Grid Modernization Study has concluded. Staff anticipates providing an update to the
Utilities Advisory Commission and other key stakeholders in the first quarter of 2023. A plan and
timeline for implementation will be developed by the end of the first quarter of 2023.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 10 Packet Pg. 449 of 473
CCPA7. Advanced Metering Infrastructure (AMI)
Status: On Track Progress: 35%
Project: Continue working to implement advanced metering, including the set-up and detailed design of
the infrastructure project. Through CY 2022, approximately 50% of the work related to integration of the
back-end billing system will be completed and approximately 1,000 meters will be installed and tested,
with full deployment being completed by the end of CY 2024.
Update: 1.23.23 The project is in the Beta phase, which includes installation of 1,000 – 2,500 electric,
gas, and water AMI meters depending on availability of electric meters. As part of the Beta phase, an
analysis of manual meter reads versus AMI meters will be conducted. Additional installation of AMI
meters will facilitate gathering more data for transformer load analysis. Staff is targeting transformers
with the greatest number of homes with electric vehicles and energy storage to assess the accuracy of
the transformer load estimates. The Beta phase is tentatively scheduled from January through June
2023. Depending on the availability of electric meters, full implementation of the program is expected
to begin in the summer of 2023 through beginning of 2025.
CCPA8. Commercial Electrification Retrofit
Status: Completed Progress: 100%
Project: As part of the upcoming building code update to advance commercial electrification efforts; the
City has entered into a contract with a private energy services provider to run a limited number of pilot
projects with commercial kitchen electrification and electrification of commercial air conditioning
(specifically rooftop packaged heating, ventilation, and air conditioning (HVAC) units).
Update: A business pilot program for electrification of commercial kitchens and heating, ventilation, and
air conditioning (HVAC) units is currently underway and early projects are being evaluated. The results
will be used to inform a future larger-scale “advanced pilot program” for rooftop HVAC. This
complements other progress on commercial electrification. The Council adopted an all-electric
commercial building mandate in October 2022 for new construction. Staff and the S/CAP Ad Hoc
Committee will bring an S/CAP Update to Council in the Spring of 2023 which will include additional
planned commercial electrification activities and studies.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 11 Packet Pg. 450 of 473
HSEB - HOUSING FOR SOCIAL AND ECONOMIC BALANCE
HSEB1. HomeKey Application
Status: Completed Progress: 100%
Project: Complete, submit, and support review of an application with LifeMoves, to the State of
California for the development of housing on a portion of the City’s LATP site.
Update: The City and LifeMoves publicly received a $26.6M Homekey award notification on August 24,
2022. Staff is finalizing the agreement with the State for funding while also moving forward on a variety
of agreements with LifeMoves, Santa Clara County Office of Supportive Housing, and the Santa Clara
County Housing Authority in relation to building and operating the shelter.
HSEB2. Parking in Lieu Downtown Office Parking Ban
Status: Completed Progress: 100%
Project: Consideration of an ordinance prohibiting office development above ground floor from
participating in the City's Downtown Parking In Lieu program.
Update: Staff is working with Rail Committee in performing additional studies and refinement of
underpass alternatives as directed by the Council. Staff will report to Council for approval as
recommended.
HSEB3. SB35 Objective Standards Ordinance
Status: Completed Progress: 100%
Project: Convert existing subjective development standards to objectives standards for qualifying
housing and mixed-use housing projects.
Update: The Ordinance was adopted (PAMC 18.24) in June 2022, converting existing subjective
development standards to objective standards for qualifying housing and mixed-use housing projects.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 12 Packet Pg. 451 of 473
HSEB4. North Ventura Coordinated Area Plan (NVCAP)
Status: On Track Progress: 65%
Project: Create a coordinated area plan for North Ventura to facilitate development of a walkable,
mixed-use neighborhood with multifamily housing, commercial services, and well-defined connections
to transit, bicycle, and pedestrian facilities.
Update: Council approved a contract amendment with existing consultant in June 2022 to create a
coordinated area plan for North Ventura. The Plan will facilitate development of a walkable, mixed-use
neighborhood with multifamily housing, commercial services, and well-defined connections to transit,
bicycle, and pedestrian facilities. Council provided additional direction on November 14, 2022 regarding
the preferred plan. CEQA technical studies have commenced. An administrative draft of the plan was
submitted to staff to review in December 2022.
Staff will hold public meetings with the Planning and Transportation Commission and Architectural
Review Board in February through July 2023 and prepare and publish the CEQA document and Draft
Plan. Council certification of the CEQA document and Plan adoption is targeted for August 2023. The
Plan must be adopted by December 1, 2023 to avoid forfeiting grant funding.
HSEB5. Housing Element Update
Status: On Track Progress: 80%
Project: Prepare for Council adoption and California Department of Housing and Community
Development (HCD) certification of an updated housing element that advances the City's housing policy
interests, meets applicable state housing requirements, and demonstrates compliance with the City's
regional housing needs assessment. The Housing Element will incorporate prior Council direction on
other housing topics, including outstanding items from the 2018/2019 Housing Work Plan and recent
renter protection policy initiatives adopted by the City Council. The Housing Element will include an
implementation schedule to complete various policies over the next eight-year housing cycle.
Update: A draft Housing Element was released on December 23, 2023 and is now subject to a 90-day
review before the state Housing and Community Development (HCD) department. Concurrent with this
review, an environmental analysis is underway in accordance with the CEQA. The PTC is expected to
make a recommendation on the draft housing element to Council in March 2023. Council review
expected in the second or third quarter of calendar year 2023 depending on how extensive HCD’s
comments are and timing of the environmental analysis.
HSEB6. Respond to Grand Jury Recommendations #9b, #10a, #12b
Status: On Track Progress: 66%
Project: Explore efforts to streamline affordable housing projects, consider -as part of the budget
process and fiscal sustainability efforts- additional resources necessary to help the City achieve/advance
its affordable housing goals, and discuss with Santa Clara County the possibility of entering a
memorandum of understanding to leverage Measure A funds. One position was added in the FY 2021
Preliminary Q1 Financial Status Report to support citywide housing and unhoused initiatives.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 13 Packet Pg. 452 of 473
Update: Recommendation 9b of the report stated that the City explore combining the Planning and
Transportation Commission and Architectural Review Board into a single review in order to streamline
processes. In June 2022, Council approved an ordinance to streamline 100% of affordable housing
projects by eliminating the legislative review component. Other qualifying projects that meet the City’s
Objective Standards are required to have only one courtesy review. This recommendation is complete.
Recommendation 10a calls for an Affordable Housing Manager responsible for ensuring the City meets
its housing target and coordinates among key stakeholders. This recommendation was considered
during the FY 2023 budget process, but no position was added. This recommendation is complete.
Recommendation 12b requires further analysis and outreach to discuss with Santa Clara County the
possibility of entering a memorandum of understanding to leverage Measure A funds. Discussions have
not yet started.
HSEB7. SB-9 Urban Lot Split Interim Ordinance / SB-9 Historic Resources Policy Discussion and Follow-
up Action
Status: Completed Progress: 100%
Project: Prepare interim and emergency ordinances establishing objective development standards for R1
urban lot splits (subdivision) authorized by SB 9 and present and provide information regarding potential
implications for potentially historic resources.
Update: Council adopted interim and emergency ordinances in December 2021 establishing objective
development standards for R1 urban lot splits (subdivision) authorized by SB 9, with follow up meetings
in early 2022. Staff provided information regarding potential implications for potentially historic
resources, which led to Council authorizing implementation of a Comp Plan policy to update the Historic
Inventory to include properties previously found eligible for National and California registers (not yet
commenced). The Interim ordinance continues to be in effect for a second year.
HSEB8. City/Sobrato Ad Hoc Discussion Regarding 340 Portage (& Related Code Interpretation)
Status: Completed Progress: 100%
Project: Engage representatives of the Sobrato Organization in discussions about possible
redevelopment of 340 Portage.
Update: At the recommendation of Council, an ad hoc committee was formed to explore potential
shared redevelopment interests for the project site with Sobrato Organization representatives. After six
months of meetings, a Council study session was held on August 1, 2022, to receive public input on
Initial Negotiated Terms and Conduct a preliminary screening for anticipated Development Agreement
and associated zoning. On October 12 and 26, the Planning and Transportation Commission held public
study sessions enabling public comments on the Draft EIR for the Development Agreement, Planned
Community Zoning, and Tentative Map, to allow redevelopment of the 14.65-acre site. The work of the
City/Sobrato ad hoc has concluded; this item will be processed through the entitlement application.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 14 Packet Pg. 453 of 473
HSEB9. Accessory Dwelling Unit Regulations (Ordinance Update)
Status: On Track Progress: 75%
Project: Prepare an ordinance(s) that responds to changes required by HCD to ensure the City's local
Accessory Dwelling Units (ADU) regulations comply with State law; propose other ordinance
modifications based on Council direction for additional community outreach.
Update: The project calls for the preparation of an ordinance(s) that responds to changes required by
HCD to ensure the City's local Accessory Dwelling Units (ADU) regulations comply with State law;
propose other ordinance modifications based on Council direction for additional community outreach.
The Planning and Transportation Commission reviewed a draft ordinance in September 2022 but
requires another review to consider HCD’s recent, December 2022, comment letter. Staff anticipates
PTC review in March with a City Council meeting in the second quarter of calendar year 2023.
HSEB10. Downtown Housing Master Plan
Status: Behind Schedule Progress: 1%
Project: Council to consider accepting an $800K grant from Metropolitan Transportation Commission
(MTC) to develop a downtown housing master plan intended to spur greater housing production in
proximity to fixed transit centers.
Update: In April 2022 Council authorized the City Manager to accept an $800K grant from Metropolitan
Transportation Commission (MTC) to develop a downtown housing master plan intended to spur greater
housing production in proximity to fixed transit centers. Council also initiated a planning process,
directing staff to return to Council to identify goals for a Downtown Housing Plan. An RFP will be re-
released in February 2023 and a consultant contract award is expected to be presented to Council in
June 2023. This project has been delayed due to insufficient responses to the initial RFP and recognition
that additional funds may be required to initiate the assignment.
HSEB11. Renter Protection - Tenant Relocation Assistance
Status: Completed Progress: 100%
Project: Enhance property-owner provided financial assistance to renters subject to no-fault evictions in
developments with 10 or more units.
Update: January 31, 2022, Council adopted ordinance 5543 lowering the threshold from 50 units to 10
units. Enhanced property-owner provided financial assistance to renters subject to no-fault evictions in
developments with 10 or more units.
HSEB12. Safe Parking Program
Status: Completed Progress: 100%
Project: Prepare an ordinance that codifies interim safe parking regulations with recommended
adjustments learned from the current pilot program.
Update: Adopted an interim ordinance amending Title 18 (zoning) of Palo Alto Municipal Code to
temporarily allow overnight safe parking as an ancillary use to churches and religious institutions.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 15 Packet Pg. 454 of 473
HSEB13. LifeMoves Operating/Lease Agreement
Status: On Track Progress:75%
Project: In collaboration with the City’s partner for its Project HomeKey application, negotiate and reach
agreement on an operating agreement and/or lease agreement to memorialize the partnership and
operating and financial terms.
Update: Staff completed a letter of intent with the County, LifeMoves, and Santa Clara County Housing
Authority outlining a variety of agreements, including:
•Temporary Right of Entry with LifeMoves (if needed) to begin construction;
• Agreement with County of Santa Clara Office of Supportive Housing to manage the post-
construction service agreement and pass through of the City’s annual contribution toward
shelter operations to LifeMoves. It also includes ongoing monitoring of operational performance
(services and financial) in partnership with the City, and
•Agreement with Santa Clara County Housing Authority to assist with advising in pre- and during
construction phases to help the City monitor construction financing, budget, schedule and
deliverables; there is also agreement that the Housing Authority will assist the City post-
construction with review and monitoring of asset management and maintenance.
HSEB14. SB-9 Permanent Ordinance (Objective Standards / Urban Lot Splits)
Status: Not Started Progress: 0%
Project: Prepare an ordinance to codify SB-9 objective development and urban lot split standards based
on additional public outreach and public hearings before the PTC.
Update: Prepare an ordinance to codify SB-9 objective development and urban lot split standards based
on additional public outreach and public hearings before the Planning and Transportation Commission.
Interim ordinance remains in effect, a limited number of SB9 project applications received. Outreach has
not begun.
HSEB15. Renter Protection - Rental Survey
Status: On Track Progress: 5%
Project: Begin discussion with Policy and Services Committee to expand, redesign, and recommend an
implementation strategy for an updated rental survey including, proposed fees, resources, and a
timeline.
Update: On September 13, 2022, the Policy and Services Committee was presented with
recommendations to expand, redesign, and recommend an implementation strategy for an updated
rental survey including proposed fees, resources, and timeline. An RFP will be released in February 2023
informing the process for resource allocation. Staff will return to the Committee by late Spring 2023
with additional information on utilization of data collected and updates on resources necessary to
implement the program.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 16 Packet Pg. 455 of 473
HSEB16. Renter Protection - Just Cause Eviction
Status: Not Started Progress: 0%
Project: Prepare an ordinance to amend just cause eviction regulations to include properties built within
the last 15 years, excluding units occupied less than a year or single-family homes not owned by a
corporation or renters who live in a duplex when one unit is owner occupied.
Update: This project has not been resourced.
HSEB17. Grand Jury Report Recommendation #3
Status: Not Started Progress: 0%
Project: Submit a recommended communication strategy to the City Council to increase community
support for affordable housing.
Update: Implementation of this recommendation is expected by early to mid-2023. Revisions and
upgrades to the City’s housing related webpages are underway with completion anticipated by the end
of first quarter 2023.
HSEB18. Retail and Residential Parking Adjustment
Status: Not Started Progress: 0%
Project: Return to Council with an ordinance for the special commercial (CS) and CDC zones to reduce
rental housing parking requirements to one space/unit and allow a maximum 1,500 square feet or retail
use when more is required by the City's Retail Preservation Ordinance; these changes are intended to
facilitate a 15% and 20% inclusionary requirement for rental housing in these districts respectively.
Update: This project has not been resourced.
HSEB19. PHZ/PC Amendment to Allow Greater Height
Status: Not Started Progress: 0%
Project: Amend the code to allow greater height for Planned Home Zone (PHZ) projects beyond 50 feet
and encroach into transitional height limits.
Update: This project has not been resourced and will likely advance by way of a private application to
implement the legislative change needed to approve a PHZ project.
HSEB20. Inclusionary Housing Program
Status: Not Started Progress: 0%
Project: Engage the PTC and explore possible zoning amendments or other factors that could support a
future 20 percent inclusionary requirement for ownership and rental housing.
Update: This project has been incorporated into the draft Housing Element as a future work item and is
not yet resourced.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 17 Packet Pg. 456 of 473
HSEB21. Streamline Application Pre-Screening Processing
Status: Not Started Progress: 0%
Project: Council direction to look at ways to streamline the pre-screening process.
Update: This project has been incorporated into the draft Housing Element as a future work item and is
not yet resourced.
HSEB22. Commercial Office Zoning Adjustments
Status: Not Started Progress: 0%
Project: Adjust commercial zoning standard to further incentivize housing and disincentivize office
development including, but not limited to, the CC2 district
Update: This project has been incorporated into the draft Housing Element as a future work item and is
not yet resourced.
HSEB23. Residential Zoning Name Change
Status: Dropped Progress: N/A%
Project: Review changes to the designation of R- 1 Zoning to reflect the current zoning allowances for
two Accessory Dwelling Units per parcel.
Update: Review changes to the designation of R-1 Zoning to reflect the current zoning allowances for
two Accessory Dwelling Units per parcel. Project is not feasible at this time.
HSEB24. Grand Jury Report Recommendations #4 and #8
Status: On Track Progress: 50%
Project: Update format of future comprehensive plan and housing element annual reports; conduct a
‘lessons learned’ analysis of the NVCAP process.
Update: Recommendation #4 calls for a “lessons learned” analysis from the 4-year North Ventura
Coordinated Area Plan (NVCAP) planning process. Create an improved process to bring residents to a
shared understanding of the needs and complexities of affordable housing development and include
direct involvement of Palo Alto elected leaders in community outreach. Complete analysis pending
conclusion of NVCAP process.
Recommendation #8 has been completed, the City has published at least two years of Housing Element
Annual Updates and cover memos. Instead of separating the Comprehensive Plan Updates as
recommended by the Grand Jury Report, for the 2023 reporting period, staff will explore opportunities
to improve readability and format to achieve the report recommendation.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 18 Packet Pg. 457 of 473
CHS - COMMUNITY HEALTH AND SAFETY
CHS1. Palo Alto Animal Shelter Services Review
Status: On Track Progress: 20%
Project: In collaboration with the City’s current service provider Pets in Need (PIN), work to review
services, infrastructure needs, and determine next steps such as contract negotiations and approvals.
Council directed staff to proceed with negotiating a long-term contract with Pets in Need for animal
services on February 14, 2022.
Update: In collaboration with the City’s current service provider Pets in Need (PIN), work to review
services, infrastructure needs, and determine next steps such as contract negotiations and approvals.
The PIN Contract has been extended to May 2023; and progress has been made on negotiating a Term
Sheet framework for a new Agreement. Staff expects to present a proposed Term Sheet to Council in
February 2023.
CHS2. Cubberley Next Steps
Status: On Track Progress: 10%
Project: Return to the Council for direction on next steps regarding use of the Cubberley Community
Center, specifically the City-owned portion and implementation of direction. Council considered
February 14, 2022.
Update: Updates on next steps regarding use of the Cubberley Community Center include
communication with PAUSD on potential land acquisition and other options for the Cubberley site. Staff
is determining next steps for repair of Cubberley Gyms A and B, which have been closed since February
2022 due to damage caused by water line breaks.
CHS3. Improve Fire Safety in Foothills
Status: On Track Progress: 75%
Project: Staff is working on various efforts related to improving the City’s planning in collaboration with
Santa Clara County and other allied agencies and entities. Efforts include not only emergency planning,
but also early warning technology, and updating operational and procedural elements within the City
organization to mitigate the risks associated with a fire in the foothills.
Item 10
Attachment B- 2022
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Item 10: Staff Report Pg. 19 Packet Pg. 458 of 473
Update: The Office of Emergency Services (OES) continues to participate in the South Bay Incident
Management Team (SB-IMT), lead a multi-departmental Foothills Fire Management Plan group, and lead
the Silicon Valley Homeland Security Coordination Group (SV-HSCG). Equipment improvements include
early fire detection, thanks to partnership with alertwildfire.org. OES is also working on the deployment
of solar battery back-up improvements in key locations to keep equipment online when electricity may
be disrupted or disconnected during a fire.
Regional Evacuation Planning: OES, Fire, Police are coordinating with Santa Clara County Fire
Department and other stakeholders (including Stanford University) on evacuation planning and
deployment of new systems, such as ZoneHaven.
Utilities Wildfire Mitigation Plan: Undergrounding of electric lines and other safety improvements.
Public Works, Community Services Department, Fire Department: ongoing work to reduce flammable
vegetation and other “fuels” in the foothills.
CHS4. Computer Aided Dispatch (CAD) Upgrade
Status: On Track Progress: 20%
Project: The Police Department is working with its consortium partners (Mountain View and Los Altos)
to identify a new CAD system to replace the legacy system version. Staff will return to Council with a
recommendation for purchasing a new CAD system.
Update: The Police Department is working with its consortium partners (Mountain View and Los Altos)
to identify a new CAD system to replace the legacy system version, the RFP will be completed by March
2023. Staff will return to Council with a recommendation for purchasing a new CAD system by Summer
2023.
CHS5. Complete Reopening of Libraries
Status: On Track Progress: 90%
Project: Further open libraries to include weekend and additional open days in alignment with service
levels authorized as part of the annual budget. At the time of writing this report, adopted service levels
remain below levels prior to the onset of the pandemic.
Update: On May 10, 2022 the Library expanded hours, both Mitchell Park and the Rinconada Library to
five days a week; and the Children’s, Downtown and College Terrace Libraries opened three days a
week. On June 20, 2022, the City Council adopted the FY23 budget to restore additional hours to the
Library. This includes adding a fourth day of service to the Children’s, College Terrace and Downtown
Libraries; and a sixth day to Mitchell Park and Rinconada Libraries; and the hiring of additional staff.
The Library is working with the Human Resources Department to fill vacancies and move forward with
the expansion of library hours. On January 22, Rinconada Library expanded its hours and is now open
10AM-6PM on Sundays. Beginning January 20, Mitchell Park Library expanded its hours on Friday and
Saturday, and is now open from 10 AM-6 PM on these days. Once staff recruitments are completed, the
Library will be expanding hours at Downtown, Children's, and College Terrace branches to four days per
week. Mitchell Park will also begin offering Sunday hours.
Item 10
Attachment B- 2022
Major Project Progress by
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Item 10: Staff Report Pg. 20 Packet Pg. 459 of 473
CHS6. Hire Ahead up to Five Police Officers
Status: On Track Progress: 10%
Project: As authorized by Council as part of the FY 2022 Mid-Year Budget review, maintain a pipeline of
recruits for police officer staffing including up to an additional five officers via a hire-ahead program.
Update: Currently, the Police Department has five Full Time Equivalent (FTE) Police Officer positions
that are vacant. Once the vacancies are filled, the next priority will be on the hire-ahead program for
the recruitment of an additional five officers.
CHS7. Rinconada Park Improvement Project
Status: Completed Progress: 100%
Project: Complete Rinconada Park project, and in partnership with Community Services Department and
City Manager’s Office organize a joint Rinconada Park/Palo Alto Junior Museum & Zoo completion
community event in Spring 2022.
Update: In partnership with Community Services Department and City Manager’s Office, organized a
joint Rinconada Park/Palo Alto Junior Museum & Zoo community event in May 2022.
CHS8. Tree Protection Ordinance Update
Status: Completed Progress: 100%
Project: Following community engagement and technical review, adopt Tree Protection Ordinance
Update to complement current policy documents, strengthen requirements and procedures for when
protected tree removals are proposed, and comply with new state legislation.
Update: On June 6, 2022, Council adopted an ordinance amending Title 8 of the Palo Alto Municipal
Code to expand tree protection to include additional protected tree species, revise grounds for tree
removal, and make clarifying changes. Additional considerations were referred to the Planning and
Transportation Commission and the Parks and Recreation Commission.
CHS9. Public Safety Building Capital Project
Status: On Track Progress: 63%
Project: Continue construction of the new facility in the California Avenue area including build and
fixtures, furniture, and equipment, with the Public Safety Building construction scheduled to be
completed in fall 2023.
Update: Construction of the new Public Safety Building (PSB) facility on California Avenue is scheduled to
be completed in Fall 2023, followed by furniture and equipment installation, communication testing and
setup. Move-in timelines project the PSB to be fully operational in early 2024.
CHS10. Newell Road Bridge Replacement (PE-12011)
Status: On Track Progress: 80%
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 21 Packet Pg. 460 of 473
Project: Complete design and right-of-way acquisition, obtain regulatory permits, and seek programming
of construction funding by Caltrans to allow construction to begin in calendar year 2023.
Update: Staff expects 90% design and cost estimates to be completed at the end of February 2023 and
will work with Caltrans to approve an updated cost estimate and accelerate construction funding to
Fiscal Year (FY) 2024 (from FY 2026). Staff is also working with Caltrans to secure additional right-of-way
needed during construction. Regulatory permits for work in the creek are also required. A joint permit
application was submitted in August 2022 with the San Francisquito Creek JPA Reach 2 project, to
include Newell Road Bridge, Pope/Chaucer Bridge, and creek widening in this review. Completion of
permitting is estimated for September 2023. With these remaining steps ahead, staff anticipates bidding
the project in late 2023 to start construction in early 2024.
CHS11. Monitor and Respond to SFO/FAA Airplane Noise Issues
Status: On Track Progress: 75%
Project: Complete consultant review of SFO Ground Based Augmentation System (GBAS) proposal and
consider submitting a comment letter, while tracking other issues that may arise.
Update: The consultant review of SFO’s Ground Based Augmentation System (GBAS) proposal was
completed in spring 2022. Following a third community meeting hosted by Palo Alto, a letter was sent to
SFO expressing the City’s concerns about the proposal. Council held a study session in August 2022 to
discuss updates. Staff has continued to work with community members on their concerns regarding SFO
noise issues over the City and is awaiting additional information on the GBAS project expected in
February 2023.
CHS12. Provide and Promote Use of Unleaded Fuel at Palo Alto Airport
Status: On Track Progress: 50%
Project: Complete upgrades at airport facilities to provide for the sale of unleaded fuel, bring unleaded
fuel to the airport, and work with users to promote use of the fuel.
Update: The planning stages for the tank upgrade have been completed and permitting is nearly
finalized. The tank lining is scheduled to be completed in February 2023. The entire process including
testing will take approximately 40 days. A premanufactured skid for the piping and pump system has
been ordered, but delivery is not expected until April due to supply chain issues. Airport staff has been
coordinating with the fixed based operators who sell fuel to ensure that their trucks are available to
dispense the fuel when it arrives. Airport staff has also been communicating with pilots on the timeline
and encouraging them to obtain the necessary supplemental type certificate for their aircraft.
CHS13. Sewer System Replacement Project 30
Status: On Track Progress: 90%
Project: Construction is anticipated to begin on this project on March 28, 2022 and complete in the fall
of 2022.
Update: The contract associated with the project was extended due to unforeseen field conditions which
placed completion to February 2023. The contractor was requested to replace more laterals by an open
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 22 Packet Pg. 461 of 473
trench method than initially anticipated which caused longer lead times. Work along the E. Charleston
Corridor was completed in April, and now work is being performed in the Ventura area (east side of El
Camino Real).
CHS14. Evaluate Gym (Recreation Wellness Center) Feasibility
Status: On Track Progress: 30%
Project: The Parks and Recreation Commission and staff presented this item to Council on March 7,
2022. Council directed staff and the Parks and Recreation Commission to conduct public outreach on a
new gym, including location, siting, gym features, cost estimates, funding timeline, demand assessment
and prioritization of projects, and to investigate fundraising.
Update: The Parks and Recreation Commission Ad Hoc Committee and staff are finalizing a community
engagement plan and public outreach is expected to begin in early 2023.
CHS15. Emergency Plans Updates
Status: On Track Progress: 25%
Project: OES will be coordinating with the County on updates to emergency plans, including the Palo
Alto Local Hazard Mitigation Plan (LHMP). See also CHS3.
Update: OES will be coordinating with the County on updates to emergency plans, including the Palo
Alto Local Hazard Mitigation Plan (LHMP). See also CHS3. Council received a progress report on
September 12, 2022. Extensive community engagement is planned in the coming months, with final
recommendations and adoption of the plan targeted for 2023.
The Santa Clara County planning cycle for updating the Community Wildfire Protection Plan (CWPP) is
also pending.
CHS16. Gas-Powered Leaf Blower Amendment
Status: On Track Progress: 25%
Project: Specifically cite those that employ and those that operate gas-powered blowers in residential
districts; modify citation authority that prevents immediate citation issuance upon violation.
Update: Gas-powered leaf blower amendments include citing employers of, and those that operate gas-
powered blowers in residential districts, as well as modifying citation authority that prevents immediate
citation issuance upon violation. A Council public meeting is planned for February 2023.
CHS17. Fire Station 4 Project
Status: On Track Progress: 27%
Project: Following Council approval of the design contract currently scheduled for April 11, complete
schematic design and begin design development stage on a schedule to allow construction to begin in
Fiscal Year 2024.
Update: Design of the new Fire Station 4 is in progress. In December 2022, the schematic design was
submitted for preliminary review by the Architectural Review Board and is pending a hearing date. A
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$5.2 million state budget earmark has been approved in support of the project. The project is on track to
begin construction in the first quarter of FY 2025.
CHS18. Sewer System Laterals Repair and Replacement throughout the City
Status: On Track Progress: 25%
Project: Begin capital improvement work on repair and replacement activities citywide upon Council
approval of contract agreement.
Update: Casey Construction is replacing sewer laterals and repairing sections of main, according to the
schedule provided by the Water Gas Wastewater Operations Department. As part of the Sewer System
Management Plan (SSMP), the City’s goal is to inspect and clean 3,300 sewer laterals annually out of the
approximate 18,000 City owned sewer laterals. Currently there are approximately 188 sewer laterals on
the priority 1 list to be replaced to minimize sanitary sewer overflows and reduce annual inspections.
CHS19. Water Main Replacement Project 28
Status: On Track Progress: 54%
Project: Council approved this work item on February 28, 2022. Project to commence in May and
anticipated completion in Spring 2023.
Update: The project is 54% complete in Barron Park neighborhood, El Camino Real, and Dinah
Court/Wilkie Way. This project is anticipated to be completed in November/December of 2023. The first
phase of the water main replacement project at Barron Park and adjacent El Camino work is nearly
complete. Staff is currently working on Dinah Court near Wilkie Way, followed by Edgewood Drive.
Construction began on April 18, 2022.
CHS20. Seismic and Resiliency Ordinance
Status: Not Started Progress: 0%
Project: Comprehensively update the City’s seismic rehabilitation ordinance with mandatory and
voluntary measures to seismically strengthen vulnerable buildings.
Update: Project is expected to be resourced in early 2023.
Item 10
Attachment B- 2022
Major Project Progress by
Council Priority
Item 10: Staff Report Pg. 24 Packet Pg. 463 of 473
Item No. 4.. Page 1 of 2
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City Council
Supplemental Report
From: Ed Shikada, City Manager
Meeting Date: February 6, 2023
Item Number: 4
TITLE
Supplemental Report to Consent Item 4, Townsend Public Affairs Contract
ANALYSIS
Staff is providing additional information on the Request for Proposals (RFP) process for the
grants management and legislative advocacy services. In the original staff report, staff
referenced that six firms had responsive proposals to this RFP and staff listed whether the
proposal was for grant consulting services and or legislative services but did not reference
which type of legislative services task the firms bid on. This additional information is provided
below, and staff also references a brief note about each proposal for the Council.
Summary of Proposals by Proposed Service
Proposer Grant Consulting Federal Advocacy State Advocacy
Alcalde & Fay X X
California Consulting X
Darnell Shaw Environmental, SPC X X
Engineering Solutions Services X
Townsend Public Affairs X X X
Van Scoyoc Associates X
Additional information about the proposals:
•Alcalde & Fay: bid on grant consulting and federal legislative services. The proposal
demonstrated a strong understanding of the grant seeking climate as well as the
Washington DC culture but did not demonstrate a strong ability to apply those services
to Palo Alto’s needs.
•California Consulting Inc. bid on grant consulting services. This proposal was very short
and did not identify specifics on helping Palo Alto through the entire grants process
including compliance support.
•Darnell Shaw Environmental, SPC. bid on grant consulting and federal legislative
services. This proposal demonstrated competence in the environmental space but did
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not show an ability to address other Palo Alto priority areas such as housing and
economic recovery.
•Engineering Solutions Services bid on grant consulting. This proposal demonstrated an
ability to assist Palo Alto with pursuing some grants, but not for all the priority areas for
Palo Alto (such as housing and economic recovery). The proposal also spoke less to
assistance with grant compliance.
•Townsend Public Affairs, Inc. bid on grant consulting and state and federal legislative
services. As mentioned in the original staff report, this proposal demonstrated strong
relationships in the state and federal legislative advocacy realm with an ability to apply
them to Palo Alto-specific needs. For grants consulting, this bidder demonstrated an
ability to assist the City with grant searching, applications, and help on grant
compliance. This bidder was the only proposal for state legislative services. For both
state and federal legislative services, this bidder showed an ability to leverage
relationships in Sacramento and Washington, DC for Palo Alto’s needs and an ability to
easily have synergy between the teams doing state and federal advocacy.
•Van Scoyoc Associates, Inc. bid on federal legislative services. This proposal
demonstrated an ability to leverage relationships in Washington, DC for Palo Alto.
Next Steps
With the Council approval of the legislative workplan at the end of 2022, Council expressed
interest in multiple touch points throughout the year regarding legislation. The first one
planned is for the end of February/early March. This will allow the Council to discuss
performance expectations with the provider approved for state and federal legislative services.
With the state legislative session underway, this selection and follow-up is time sensitive to
allow the provider to receive guidance from Council and initiate advocacy in the current
session.
APPROVED BY:
Ed Shikada, City Manager
Item #2302-0913
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CITY COUNCIL
STAFF REPORT
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: February 6, 2023
TITLE
Objectives to advance the 2023 City Council Priorities
RECOMMENDATION
Council approval of objectives to advance the 2023 Council Priorities.
BACKGROUND
On January 28, 2022, the Council held its annual retreat to approve the 2023 Council Priorities 1.
The Priority Setting Guidelines define a priority as a topic that will receive unusual and
significant attention during the year. At the conclusion of the retreat, the City Council approved
the following priorities:
•Economic Recovery and Transition
•Climate Change and the Natural Environment: Protection and Adaptation
•Housing for Social and Economic Balance
•Community Health and Safety
The City Council then directed that staff return on February 6th with suggested objectives
derived from Council comments at the annual retreat to achieve the strategic priorities.
ANALYSIS
Council Priorities guide resource allocation and staff workplans for the coming year. In recent
years, staff has then identified major projects associated with each priority to be tracked and
reported on. Successful completion of projects, programs and services is dependent on the
work that follows, balancing among these and other priorities, needs and resource capacity.
1 City Council Retreat 1/28/23 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1492
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Following the City Council’s work on January 28, staff compiled a summary of topics suggested
by Councilmembers for discussion on February 6. In addition, staff quickly developed a listing
of objectives that reflect actions that will be needed by Council in order to advance the
priorities identified for 2023.
For each Council priority, staff tried to develop objectives that align with a Priority purpose,
time-bound and measurable. Staff referred to SMARTIE principles: Specific, Measurable,
Achievable, Relevant, Timely, Inclusive, and Equitable to outline the list of objectives for the
coming 12 months.
For each Council Priority, staff has provided the following: (1) Councilmember feedback from
Saturday January 28, 2023 Retreat, (2) Potential focus areas, and (3) “Objectives” largely
defined as Council actions and engagement needed during calendar year 2023 advance the
stated priorities. Council engagement may include a variety of forms, such as Council approval,
committee/council ad hoc review and recommendations, legislative advocacy, regional
board/committee representation, and budgetary actions. Should Council approve the
objectives that follow, staff will use this list for tracking and reporting through 2023.
This is a very ambitious workplan. Staff have estimated that several objectives will require
additional resource allocation in order to complete it in full as outlined. As noted in other
financial reports, allocation of additional funding (contract or staffing) is not always a complete
solution to overcome obstacles for completion. Timelines to procure consultant support, or the
process to recruit, onboard, and train new staff delay the City’s ability to begin or maintain the
pace of work on these projects, especially within the 12-month timeframe outlined.
Each objective has a few identifying characteristics, below is a guide to help understand the
lists:
•“New:” reflects an action or project that is new to 2023 and was not on the 2022
workplan
•“(ERT#), (CHS#), (CCPA#), or (HSEB#)” reflects a reference to the project priority and
project number as identified on the Council approved 2022 workplan. Not all numbers
will be present as some projects were complete, or consolidated, or dropped
•“$” reflects a project that requires additional resources to achieve and complete
•“Q#” reflects the 2023 calendar year quarter estimated completion and/or to be
completed by timeframe. Q1 is January-March, Q2 is April-June, Q3 is July-September,
and Q4 is October-December.
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ECONOMIC RECOVERY AND TRANSITION
City Council retreat discussion: Areas of focus and priority discussed by Councilmembers
included:
•Parklets
•Permitting
•A focus on retail and small business recovery locally
•Treatment of vacant property (reference to Oakland and San Francisco)
Council actions/approvals anticipated in 2023:
Support economic recovery and business transition
CY
a) Adopt a Comprehensive Economic Development Strategy (ERT 2)$Q2
b) Implement or upgrade electronic plan review software without interruption to
the permitting process (ERT 9)
-Q3
c)New: Implement recommendations in Building and Permit Review Report
conducted by the City Auditor
-Q3
d)New: Begin stakeholder engagement and implementation of new business tax
(Measure K)
$Q4
Focus on commercial corridors, Downtown and California Ave
e)New: Begin implementation of next phase of parklet regulations to the
community
$Q1
f) Evaluate opportunities for New Parking Facilities in the University Ave
Downtown and direct next steps (ERT 10)
-Q2
g) Align Business Improvement District (BID) priorities and investments to the
Comprehensive Economic Development Strategy (ERT 1)
Q3/4
h) Advance development of a permanent car-free streets ordinance (selection of
consultant support) (ERT 6 & 7)
$Q3
i) Approve concept plan for University Ave streetscape and provide direction on
capital project funding (ERT 5)
-Q4
j) Extend temporary closure for car free streets (ERT 6 & 7)-Q4
k) Provide direction on citywide retail zoning code changes (specifically retail
preservation and neighborhood commercial district specific regulations and
CUP thresholds) (ERT 4, 12, 13; expected 2024 Q2)
$2024
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CLIMATE CHANGE & THE NATURAL ENVIRONMENT
City Council retreat discussion:
Areas of focus and priority discussed by Councilmembers included:
•Flood protection
•Natural environment and biodiversity; adapt natural ways of protecting natural habitats
(examples: bird safe glass, light pollution protection of critters and wildlife)
•Naturalize Matadero Creek, protection and setbacks
•Youth engagement in initiatives, objectives, and goals
Council actions/approvals anticipated in 2023:
Climate Change Protection
l) Implement Advanced Metering Infrastructure (AMI) through purchase of
meters/equipment in February 2023 for installation(CCPA7)
-Q1
m)New: Approve consultant to update Bike and Pedestrian Transportation Plan
(Additional Bike/Ped Grade Crossings will be included in network discussions,
schedule pending consultant selection)
-Q2
n) Approve municipal code amendments for advancing S/Cap goals (specifically
facilitate photovoltaic, energy storage system, electric vehicle charging station,
and heat pump (water/furnace) installations) (CCPA1)
-Q2
o) Approve S/CAP Update and 3-year workplan (CCPA4)-Q2
p)New: Begin first phase construction for grid modernization in summer 2023 (if
needed) and consultant resources to plan for gas transition
-Q4
q)New: Install first 1,000 heat pump water heaters through the advanced pilot
program and approve expanded full-scale program
-Q4
r)New: Approve advanced pilot program for whole residential home
electrification by the end of 2023 (targeted areas)
-Q4
s)New: Approve commercial rooftop HVAC electrification advanced pilot
program
-Q4
t)New: Accept Electric Vehicle Strategic Plan $Q4
u)New: Accept Reliability and Resiliency Strategic Plan $Q4
v)New: Review preliminary draft S/CAP study discussing workplan resource
needs and project funding opportunities
$Q4
Climate Change Adaptation: flood protection
w)New: Advance the San Francisquito Creek Flood Protection capital project
(Reach 2) as close to approval as possible by the end of 2023, through
Council’s JPA representation and any Council approvals involved. (focus on
securing funding, finalizing CEQA review, approval of project entitlements, and
obtaining required construction easements)
-Q1
Q4
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x) Secure funding and approve construction for the Newell Bridge replacement
project; advocacy with State legislators educating on project funding needs
(previously CHS10)
$Q4
Note: Wildfire safety and protection are referenced under the Community Health and Safety
priority.
Natural Environment
y) Approve agreements with Valley Water purified water facility at LATP Area B
(operations and maintenance) (CCPA3)
-Q3
z)New: Adopt appropriate changes to the revised Tree Protection Ordinance (to
follow a review of impacts of the revised ordinance by PTC and PRC)
-Q4
HOUSING FOR SOCIAL AND ECONOMIC BALANCE
City Council retreat discussion:
Areas of focus and priority discussed by Councilmembers included:
•Support housing needs as identified by the community (as opposed to following RHNA)
•Focus on lower income housing units
•Intentional on where new housing units are developed
•Establish a housing committee
Council actions/approvals anticipated in 2023:
Advance Renter Protection Policies
aa)New: Approve access to rental units by establishing security deposit limits -Q2
bb) Provide protections to renters by considering expansion of the just cause
eviction ordinance (HSEB16)
-Q3
cc) Implement a rental registry to inform future renter protection policies
(timeline estimate, calendar year 2024 Q1) (HSEB15)
$2024
Advance Housing Plans
dd) Expand housing opportunities through the initiation of a Downtown Housing
Plan: includes approval of project funding and a consultant contract
(HSEB10)
$Q2
ee) Advance local and state housing interests through a HCD-compliant Housing
Element (iterative work process to start Q2) (HSEB5)
-Q4
ff) Advance vision for North Ventura Coordinated Area by adopting a
coordinated area plan (financial impacts if not approved, $800,000 impact)
(HSEB4)
-Q4
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gg) Create new affordable housing opportunities through funding such as a
housing land trust, in particular, CalCHA (City Council referral)
$TBD
hh) Explore opportunities to regulate short term-rentals with Council committee
(Council colleague’s memo)
$TBD
Implement Housing Production Policies
ii) Codify permanent standards related to the City local SB9 implementation
ordinance (HSEB 14)
-Q1
jj) Approve adjusted Accessory Dwelling Unit (ADU) regulations to facilitate
production and meet HCD requirements (HSEB9)
-Q2
kk) Respond to various Grand Jury recommendations related to Housing2 (HSEB
6, 17, 24)
-Q3
ll) Refine implementation of City’s SB9 objective development and urban lot
split standards (HSEB 14)
-Q4
mm)New: Adopt an ordinance amending the development standards for
Stanford-owned housing opportunity sites
-Q4
nn)New: Rezone carryover housing opportunity sites for by-right development
when developed with 20% lower income affordable housing units
-Q4
oo)New: Adopt an ordinance to implement revised development standards for
certain properties located in the GM/ROLM to allow for densities up to 90
units/acre
-Q4
Support Unhoused Service Initiatives
pp) Begin construction in partnership with LifeMoves for Palo Alto Homekey
project to provide transitional housing and services for unhoused residents
(HSEB13)
-Q2
qq)New: Develop a citywide strategy to connect unhoused residents to housing
and services
$Q3
2 Grand Jury recommendations include:
Recommendation 12b: Santa Clara County MOU on Measure A monies for affordable housing.
Recommendation 4: NVCAP lessons learned process.
Recommendation 8: Improve readability and format of Housing Element Annual update and cover memos.
Recommendation 3: Research other cities affordable housing communication strategies, provide recommended
strategy for Palo Alto, and update affordable housing info on City website
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COMMUNITY HEALTH AND SAFETY
City Council retreat discussion:
Areas of focus and priority discussed by Councilmembers included:
•Flood protection
•HSRAP funding increase
•Maintain a diverse definition of ‘health” (included but not limited to physical and
mental)
•Airplane noise (establish airplane noise committee)
•Police presence in downtown cores (specifically on foot or bike presence)
Council actions/approvals anticipated in 2023:
Mental & physical health and belonging
rr) Complete reopening libraries to budgeted level (remains below pre-pandemic
levels) (CHS5)
-Q2
ss) Approval of multi-year agreement for provisions of animal shelter services
(CHS1)
$Q3
tt)New: Expand and enhance community special events with focus on inclusion
(linked to activities in ERT)
$Q3
uu)Approve agreement with PAUSD on long term use of the Cubberley property
(CHS2)
-Q4
vv) Recreation Wellness Center Feasibility: Agreement on location, general design
and features of a recreation wellness center and finalize an agreement with a
new nonprofit responsible for raising funds for design and construction.
(CHS14)
$Q4
Invest in reliable safety infrastructure and systems
ww) Support visible police presence by ensuring stable staffing (recruiting and
retention) through hiring ahead program (CHS6)
$Q1 -
Q4
xx)New: Support a diverse community through extension of the Psychiatric
Emergency Response Team (PERT) program services to the community
through affirmation of continued City financial support
$Q2
yy) Update without interruption 911 dispatch system (CAD provider) once
selected through procurement process (CHS4)
-Q3
zz)New: Begin construction of the Gas Main Replacement Project 24B -Q3/4
aaa) Approve updated Local Hazard Mitigation Plan and Community Wildfire
Protection Plan to ensure safety of the community (CHS15)
-Q4
bbb) Implement Foothills Fire Management Plan (includes fuel reduction, early
detection system, community awareness application rollout) (CHS3)
-Q4
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ccc) Approve actions needed to advance final construction phase of Public Safety
Building and begin preparations for move-in (estimated move Q4 2023)
(CHS9)
-Q4
ddd) Approve next steps for the rebuild of Fire Station No. 4 project (specifically
design and entitlements) (CHS17)
-Q4
eee) Approve resources and consultant to study and develop seismic and
resiliency ordinance (CHS20)
$TBD
Reduction of noise and air quality pollution
fff) Update gas-powered leaf blower ordinance and enforcement plan (CHS16)-Q1
ggg) Implement a strategy for the provision and promotion of unleaded fuel at
Palo Alto Airport (CHS12)
-Q4
hhh)New: Approval of quiet zone implementation (rail/train crossings)-Q4
iii)New: Engage with the SFO Roundtable on SFO's Ground Based
Augmentation System (GBAS) project and other potential opportunities to
decrease SFO noise impacts on Palo Alto (previous project was CHS11)
$TBD
Note: Flood protection activities including Newell Road bridge improvements are referenced under
the Climate Change & Natural Environment - Protection & Adaptation priority
FISCAL/RESOURCE IMPACT
Council approval of Priority areas does not have an immediate fiscal impact. Resources will
need to be allocated to non-resourced projects to implement Council Priorities. Opportunities
to resource projects include Long Range Financial Forecast on February 6, 2023, Mid-Year
Budget Review on February 13, 2023, and FY 2024 Budget Adoption in June 2023.
STAKEHOLDER ENGAGEMENT
Staff anticipates returning to the City Council in March 2023 with community engagement plans
based on the selected 2023 Council priorities, adopted objectives to achieve these priorities
and projects identified within each area. There are various levels of community engagement
and communications to support each project.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the Council discussion
on 2023 Priority Objectives is a continuing administrative or maintenance activity. CEQA
Guidelines section 15378 (b)(2).
APPROVED BY:
Ed Shikada, City Manager
Report #:
2302-0910
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