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2023-08-14 City Council Agenda Packet
CITY COUNCIL Regular Meeting Monday, August 14, 2023 Council Chambers & Hybrid 5:30 PM Amended Agenda Amended agenda items appear below in Red Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference 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 CLOSED SESSION (5:30 ‐ 6:30 PM) 1.CONFERENCE WITH CITY ATTORNEY‐POTENTIAL LITIGATION Subject: May 16, 2023 letter from Rutan and Tucker, representing Hudson Palo Alto Square LLC Authority: Potential Exposure to Litigation Under Government Code Section 54956.9(d)(2) One Case, as Defendant Item Removed AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (5:30 ‐ 5:45 PM) Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:45 ‐ 5:50 PM) Members of the public may not speak to the item(s). CONSENT CALENDAR (5:50 ‐ 5:55 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 2.Adoption of Memorandum of Agreement with Service Employees International Union Hourly Unit and Compensation Plan for Unrepresented Limited Hourly Employees, effective upon adoption through June 30, 2025; and Adoption of revised Management and Professional Salary Schedule to add one new classification effective July 1, 2023; CEQA Status ‐ Not a project 3.Adoption of a Resolution and Approving an Easement Relocation Agreement Relocating and Vacating a 25 Foot Public Service Easement at 220 Embarcadero Road 4.Approval of Contract with Enterprise Roofing Service, Inc. for the Lucie Stern Community Center Roof Underlayment Replacement Project; CEQA status ‐ exempt under CEQA Guideline Sections 15301 and 15302 CITY MANAGER COMMENTS (5:55 ‐ 6:10 PM) BREAK ACTION ITEMS (Item 5: 6:10 ‐ 7:40 PM, Item 6: 7:40 ‐ 9:10 PM, Item 7: 9:10 ‐ 10:10 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 5.Adoption of a Comprehensive Economic Development Strategy to Guide City Priorities, Initiatives, and Project Outcomes. CEQA Status ‐ Not a Project. 6.Approval of a revised Term Sheet with Pets in Need for Operations of the Palo Alto Animal Shelter and an Interim Payment in the Amount of $55,535 per month beginning June 1, 2023 until a new Agreement is executed; CEQA status ‐ not a project. 7.Update on Pending State and Federal Legislation and Advocacy and Grant Writing Support Activities; Consideration of Resolution Offering Comments on SB 532 ‐ the Safe, Clean, and Reliable Bay Area Public Transportation Emergency Act ADJOURNMENT INFORMATION REPORTS Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda. 8.City Council Recess Report 9.Fiscal Year 2023 Annual Evaluation Report for the Santa Clara County Multi‐Jurisdictional Program for Public Information on Flood Preparedness and Awareness, and the Resulting Community Rating System Flood Insurance Discounts OTHER INFORMATION Standing Committee Meetings this week Finance Committee August 15, 2023 City Schools Liaison Committee August 17, 2023 – CANCELED Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS 1.CONFERENCE WITH CITY ATTORNEY‐POTENTIAL LITIGATION Subject: May 16, 2023 letter from Rutan and Tucker, representing Hudson Palo Alto Square LLC Authority: Potential Exposure to Litigation Under Government Code Section 54956.9(d)(2) One Case, as Defendant Item Removed PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For 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 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 smart phone from the Apple App Store or Google Play Store and enter in 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 HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 1 Regular Meeting August 14, 2023 Materials submitted to the Board after distribution of the agenda packet are available for public inspection CITY COUNCILRegular MeetingMonday, August 14, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in RedPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic 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 endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast 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)900‐6833PUBLIC 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 CLOSED SESSION (5:30 ‐ 6:30 PM) 1.CONFERENCE WITH CITY ATTORNEY‐POTENTIAL LITIGATION Subject: May 16, 2023 letter from Rutan and Tucker, representing Hudson Palo Alto Square LLC Authority: Potential Exposure to Litigation Under Government Code Section 54956.9(d)(2) One Case, as Defendant Item Removed AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (5:30 ‐ 5:45 PM) Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:45 ‐ 5:50 PM) Members of the public may not speak to the item(s). CONSENT CALENDAR (5:50 ‐ 5:55 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 2.Adoption of Memorandum of Agreement with Service Employees International Union Hourly Unit and Compensation Plan for Unrepresented Limited Hourly Employees, effective upon adoption through June 30, 2025; and Adoption of revised Management and Professional Salary Schedule to add one new classification effective July 1, 2023; CEQA Status ‐ Not a project 3.Adoption of a Resolution and Approving an Easement Relocation Agreement Relocating and Vacating a 25 Foot Public Service Easement at 220 Embarcadero Road 4.Approval of Contract with Enterprise Roofing Service, Inc. for the Lucie Stern Community Center Roof Underlayment Replacement Project; CEQA status ‐ exempt under CEQA Guideline Sections 15301 and 15302 CITY MANAGER COMMENTS (5:55 ‐ 6:10 PM) BREAK ACTION ITEMS (Item 5: 6:10 ‐ 7:40 PM, Item 6: 7:40 ‐ 9:10 PM, Item 7: 9:10 ‐ 10:10 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 5.Adoption of a Comprehensive Economic Development Strategy to Guide City Priorities, Initiatives, and Project Outcomes. CEQA Status ‐ Not a Project. 6.Approval of a revised Term Sheet with Pets in Need for Operations of the Palo Alto Animal Shelter and an Interim Payment in the Amount of $55,535 per month beginning June 1, 2023 until a new Agreement is executed; CEQA status ‐ not a project. 7.Update on Pending State and Federal Legislation and Advocacy and Grant Writing Support Activities; Consideration of Resolution Offering Comments on SB 532 ‐ the Safe, Clean, and Reliable Bay Area Public Transportation Emergency Act ADJOURNMENT INFORMATION REPORTS Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda. 8.City Council Recess Report 9.Fiscal Year 2023 Annual Evaluation Report for the Santa Clara County Multi‐Jurisdictional Program for Public Information on Flood Preparedness and Awareness, and the Resulting Community Rating System Flood Insurance Discounts OTHER INFORMATION Standing Committee Meetings this week Finance Committee August 15, 2023 City Schools Liaison Committee August 17, 2023 – CANCELED Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS 1.CONFERENCE WITH CITY ATTORNEY‐POTENTIAL LITIGATION Subject: May 16, 2023 letter from Rutan and Tucker, representing Hudson Palo Alto Square LLC Authority: Potential Exposure to Litigation Under Government Code Section 54956.9(d)(2) One Case, as Defendant Item Removed PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For 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 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 smart phone from the Apple App Store or Google Play Store and enter in 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 HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 2 Regular Meeting August 14, 2023 Materials submitted to the Board after distribution of the agenda packet are available for public inspection CITY COUNCILRegular MeetingMonday, August 14, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in RedPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic 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 endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast 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)900‐6833PUBLIC 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 ORDERCLOSED SESSION (5:30 ‐ 6:30 PM)1.CONFERENCE WITH CITY ATTORNEY‐POTENTIAL LITIGATIONSubject: May 16, 2023 letter from Rutan and Tucker, representing Hudson Palo AltoSquare LLCAuthority: Potential Exposure to Litigation Under Government Code Section 54956.9(d)(2)One Case, as Defendant Item RemovedAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:30 ‐ 5:45 PM)Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of OralCommunications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:45 ‐ 5:50 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (5:50 ‐ 5:55 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Adoption of Memorandum of Agreement with Service Employees International UnionHourly Unit and Compensation Plan for Unrepresented Limited Hourly Employees,effective upon adoption through June 30, 2025; and Adoption of revised Managementand Professional Salary Schedule to add one new classification effective July 1, 2023;CEQA Status ‐ Not a project3.Adoption of a Resolution and Approving an Easement Relocation Agreement Relocatingand Vacating a 25 Foot Public Service Easement at 220 Embarcadero Road4.Approval of Contract with Enterprise Roofing Service, Inc. for the Lucie Stern CommunityCenter Roof Underlayment Replacement Project; CEQA status ‐ exempt under CEQAGuideline Sections 15301 and 15302CITY MANAGER COMMENTS (5:55 ‐ 6:10 PM) BREAK ACTION ITEMS (Item 5: 6:10 ‐ 7:40 PM, Item 6: 7:40 ‐ 9:10 PM, Item 7: 9:10 ‐ 10:10 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 5.Adoption of a Comprehensive Economic Development Strategy to Guide City Priorities, Initiatives, and Project Outcomes. CEQA Status ‐ Not a Project. 6.Approval of a revised Term Sheet with Pets in Need for Operations of the Palo Alto Animal Shelter and an Interim Payment in the Amount of $55,535 per month beginning June 1, 2023 until a new Agreement is executed; CEQA status ‐ not a project. 7.Update on Pending State and Federal Legislation and Advocacy and Grant Writing Support Activities; Consideration of Resolution Offering Comments on SB 532 ‐ the Safe, Clean, and Reliable Bay Area Public Transportation Emergency Act ADJOURNMENT INFORMATION REPORTS Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda. 8.City Council Recess Report 9.Fiscal Year 2023 Annual Evaluation Report for the Santa Clara County Multi‐Jurisdictional Program for Public Information on Flood Preparedness and Awareness, and the Resulting Community Rating System Flood Insurance Discounts OTHER INFORMATION Standing Committee Meetings this week Finance Committee August 15, 2023 City Schools Liaison Committee August 17, 2023 – CANCELED Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS 1.CONFERENCE WITH CITY ATTORNEY‐POTENTIAL LITIGATION Subject: May 16, 2023 letter from Rutan and Tucker, representing Hudson Palo Alto Square LLC Authority: Potential Exposure to Litigation Under Government Code Section 54956.9(d)(2) One Case, as Defendant Item Removed PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For 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 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 smart phone from the Apple App Store or Google Play Store and enter in 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 HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 3 Regular Meeting August 14, 2023 Materials submitted to the Board after distribution of the agenda packet are available for public inspection CITY COUNCILRegular MeetingMonday, August 14, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in RedPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic 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 endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast 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)900‐6833PUBLIC 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 ORDERCLOSED SESSION (5:30 ‐ 6:30 PM)1.CONFERENCE WITH CITY ATTORNEY‐POTENTIAL LITIGATIONSubject: May 16, 2023 letter from Rutan and Tucker, representing Hudson Palo AltoSquare LLCAuthority: Potential Exposure to Litigation Under Government Code Section 54956.9(d)(2)One Case, as Defendant Item RemovedAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:30 ‐ 5:45 PM)Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of OralCommunications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:45 ‐ 5:50 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (5:50 ‐ 5:55 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Adoption of Memorandum of Agreement with Service Employees International UnionHourly Unit and Compensation Plan for Unrepresented Limited Hourly Employees,effective upon adoption through June 30, 2025; and Adoption of revised Managementand Professional Salary Schedule to add one new classification effective July 1, 2023;CEQA Status ‐ Not a project3.Adoption of a Resolution and Approving an Easement Relocation Agreement Relocatingand Vacating a 25 Foot Public Service Easement at 220 Embarcadero Road4.Approval of Contract with Enterprise Roofing Service, Inc. for the Lucie Stern CommunityCenter Roof Underlayment Replacement Project; CEQA status ‐ exempt under CEQAGuideline Sections 15301 and 15302CITY MANAGER COMMENTS (5:55 ‐ 6:10 PM)BREAKACTION ITEMS (Item 5: 6:10 ‐ 7:40 PM, Item 6: 7:40 ‐ 9:10 PM, Item 7: 9:10 ‐ 10:10 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.5.Adoption of a Comprehensive Economic Development Strategy to Guide City Priorities,Initiatives, and Project Outcomes. CEQA Status ‐ Not a Project.6.Approval of a revised Term Sheet with Pets in Need for Operations of the Palo AltoAnimal Shelter and an Interim Payment in the Amount of $55,535 per month beginningJune 1, 2023 until a new Agreement is executed; CEQA status ‐ not a project.7.Update on Pending State and Federal Legislation and Advocacy and Grant WritingSupport Activities; Consideration of Resolution Offering Comments on SB 532 ‐ the Safe,Clean, and Reliable Bay Area Public Transportation Emergency ActADJOURNMENTINFORMATION REPORTSInformation reports are provided for informational purposes only to the Council and the public but are not listed for actionduring this meeting’s agenda.8.City Council Recess Report9.Fiscal Year 2023 Annual Evaluation Report for the Santa Clara County Multi‐JurisdictionalProgram for Public Information on Flood Preparedness and Awareness, and the ResultingCommunity Rating System Flood Insurance DiscountsOTHER INFORMATIONStanding Committee Meetings this week Finance Committee August 15, 2023 City Schools Liaison Committee August 17, 2023 – CANCELEDPublic Comment LettersSchedule of MeetingsAMENDED AGENDA ITEMS1.CONFERENCE WITH CITY ATTORNEY‐POTENTIAL LITIGATIONSubject: May 16, 2023 letter from Rutan and Tucker, representing Hudson Palo Alto Square LLC Authority: Potential Exposure to Litigation Under Government Code Section 54956.9(d)(2) One Case, as Defendant Item Removed PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For 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 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 smart phone from the Apple App Store or Google Play Store and enter in 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 HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 4 Regular Meeting August 14, 2023 Materials submitted to the Board after distribution of the agenda packet are available for public inspection City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Human Resources Meeting Date: August 14, 2023 Report #:2307-1735 TITLE Adoption of Memorandum of Agreement with Service Employees International Union Hourly Unit and Compensation Plan for Unrepresented Limited Hourly Employees, effective upon adoption through June 30, 2025; and Adoption of revised Management and Professional Salary Schedule to add one new classification effective July 1, 2023; CEQA Status - Not a project RECOMMENDATION Staff recommends: 1. Council adopt the updated Salary Schedule and Compensation Plan for unrepresented Limited hourly employees, effective through June 30, 2025 (Attachment A and B); 2. Council adopt an updated Salary Schedule and Memorandum of Agreement for Service Employees International Union Hourly Unit, effective through June 30, 2025 (Attachment C and D); and 3. Adopt revised Management and Professional Salary Schedule to add one new classification, effective July 1, 2023 (Attachment E). BACKGROUND Represented hourly employees covered by SEIU is a group of approximately 125 hourly employees who generally work under 1000 hours in a fiscal year and excludes seasonal work. Unrepresented limited hourly employees work less than 416 hours per fiscal year and depending on the season, there are approximately 115 limited hourly employees. These employees are found primarily in the Library and Community Services Departments. Classifications range include Library Clerk, Arts and Science Professional, Administrative Specialist, Recreation Leader, Open Space Technician, and General Laborer. Both the current Memorandum of Agreement for SEIU-Hourly and the Compensation Plan for Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 1 Packet Pg. 5 of 302 Limited Hourlies expired June 30, 2023. The new MOA and Compensation Plan will continue for two years through June 30, 2025. ANALYSIS •General Wage: •4% effective the first full pay period following adoption by City Council •4% effective the first full pay period including July 1, 2024 •Targeted classification wage adjustments as outlined in the MOA and the Salary Schedules attached: Equivalent to 2% for SEIU-H and 0.5% for Limited Hourlies •1 Floating Holiday: based on prorated hours scheduled to work •For SEIU-H only, Medical Stipend: Increased the first full pay period following adoption to $3.64 per hour worked (4.5% increase), July 1, 2024 increase to $3.80 per hour worked (4.5% increase) Management & Professional Salary Schedule Revision: 1, revised on April 17, 2023 and on June 12, 2023. FISCAL/RESOURCE IMPACT 1 City Council December 19, 2022, Item #7, Staff Report 15004, Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 2 Packet Pg. 6 of 302 group. The cumulative ongoing annual costs at the end of the term are estimated at $410,000 in the General Fund and $615,000 in all funds. STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 3 Packet Pg. 7 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 1 of 47 Memorandum of Agreement Service Employees International Unit (SEIU) Local 521 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 4 Packet Pg. 8 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 2 of 47 CONTENTS PREAMBLE ................................................................................................................................... 5 ARTICLE I – RECOGNITION ...................................................................................................... 5 Section 1...................................................................................................................................... 5 Section 2. No Discrimination. ..................................................................................................... 6 ARTICLE II - UNION SECURITY ............................................................................................... 6 Section 1. Notice. ....................................................................................................................... 6 Section 2. Agency Shop. ............................................................................................................. 6 Section 3. Documentation. .......................................................................................................... 8 Section 4. Payroll Deduction. ..................................................................................................... 8 Section 5. Bulletin Boards and Departmental Mail. ................................................................... 9 Section 6. Access to Union Representatives. ............................................................................. 9 Section 7. Meeting Places. .......................................................................................................... 9 Section 8. Notification to the Union. .......................................................................................... 9 Section 9. Union Logo. ............................................................................................................. 10 Section 10. City Council Materials. .......................................................................................... 10 Section 11. Temporary Agency Reporting ............................................................................... 10 Section 12. Job Postings. .......................................................................................................... 10 Section 13. Contracting Out. ..................................................................................................... 10 Section 14. New Employee Procedure/Process. ....................................................................... 11 ARTICLE III. - STEWARDS ....................................................................................................... 11 Section 1. Designation. ............................................................................................................ 11 Section 2. Release Time. .......................................................................................................... 11 Section 3. Advance Notification and Approval. ...................................................................... 12 Section 4. Timecard Reporting. ................................................................................................ 12 Section 5. Storage of Union materials. .................................................................................... 12 Section 6. Labor/Management Meetings. ................................................................................ 12 ARTICLE IV. - REDUCTION IN FORCE ................................................................................. 12 Section 1.................................................................................................................................... 12 Section 2. Notice ...................................................................................................................... 12 Section 3. Seniority and Service Ties. ...................................................................................... 13 Section 4. Bumping Rights. ...................................................................................................... 13 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 5 Packet Pg. 9 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 3 of 47 Section 5. Re-Employment List. ............................................................................................... 14 Section 6. Reinstatement. .......................................................................................................... 14 Section 7.................................................................................................................................... 14 ARTICLE V. - PERSONNEL ACTIONS .................................................................................... 14 Section 1. Probationary Period. ............................................................................................... 14 Section 2. Personnel Evaluations. ............................................................................................ 15 Section 3. Personnel Files. ....................................................................................................... 15 Section 4. Release of Information. ........................................................................................... 15 Section 5. Full Time Opportunities. ......................................................................................... 15 Section 6. Equitable Rotation. .................................................................................................. 15 Section 7. Internal Eligibility. .................................................................................................. 16 Section 8. Work in SEIU Classified Unit Vacancies. ............................................................... 16 ARTICLE VI - PAY ..................................................................................................................... 16 Section 1. Wages. ..................................................................................................................... 16 Section 2. Step Increases.......................................................................................................... 18 Section 3. Working Out of Classification. ............................................................................... 18 Section 4. Direct Deposit. ......................................................................................................... 19 ARTICLE VII - HOURS OF WORK, OVERTIME .................................................................... 19 Section 1. Work Week and Work Day. .................................................................................... 19 Section 2. Overtime Work. ....................................................................................................... 19 Section 3. Work Shifts. ............................................................................................................. 19 Section 4. Lunch and Break Periods. ........................................................................................ 20 Section 5. Clean-Up Time. ........................................................................................................ 20 Section 6. Call-Out Pay............................................................................................................. 20 ARTICLE VIII – UNIFORMS ..................................................................................................... 20 ARTICLE IX - HOLIDAYS ......................................................................................................... 21 Section 1. Fixed Holidays: ....................................................................................................... 21 ARTICLE X- LEAVES ................................................................................................................ 22 Section 1. Sick Leave. ............................................................................................................... 22 Section 2. Jury duty................................................................................................................... 22 ARTICLE XI - VOTING TIME ................................................................................................... 23 ARTICLE XII - WORKERS COMPENSATION ........................................................................ 23 Industrial Temporary Disability ................................................................................................ 23 ARTICLE XIII – BENEFIT PROGRAMS .................................................................................. 23 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 6 Packet Pg. 10 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 4 of 47 Section 1. Medical Insurance Plan. .......................................................................................... 23 ARTICLE XIV - RETIREMENT ................................................................................................. 24 Section 1. Part-time, Seasonal, Temporary (PST) Retirement Plan. ........................................ 24 Section 2. California Public Employees’ Retirement System (“PERS”). ................................ 24 Section 3. Retirement Contributions. ........................................................................................ 25 ARTICLE XV PARKING ............................................................................................................ 25 ARTICLE XVI PHYSICAL EXAMINATIONS ......................................................................... 26 ARTICLE XVII - SAFETY .......................................................................................................... 26 Section 1. Health and Safety Provisions. .................................................................................. 26 Section 2.................................................................................................................................... 26 Section 3. Safety Committee..................................................................................................... 26 ARTICLE XVIII - GRIEVANCE PROCEDURE ........................................................................ 27 Section 1.................................................................................................................................... 27 Section 2. Definition. ................................................................................................................ 27 Section 3. Conduct of Grievance Procedure. ........................................................................... 27 Section 4. Grievance Procedure. ............................................................................................... 29 ARTICLE XIX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION ....................................................................................................................................... 31 Section 1. Right to Discipline .................................................................................................. 31 Section 2. Written Notice ...................................................................................................... 31 Section 3. Preliminary Notice of Discipline ............................................................................. 31 Section 4. Skelly Meeting. ....................................................................................................... 32 ARTICLE XX – NO ABROGATION OF RIGHTS .................................................................... 32 ARTICLE XXI – OUTSIDE EMPLOYMENT ............................................................................ 32 ARTICLE XXII PROMOTIONAL CONVERSION OPPORTUNITIES .................................. 32 ARTICLE XXIII – PROVISIONS OF THE LAW ...................................................................... 32 Section 1.................................................................................................................................... 32 Section 2.................................................................................................................................... 33 ARTICLE XXIV – COST REDUCTION PROGRAMS ............................................................. 33 ARTICLE XXV – TERM ............................................................................................................. 33 EXECUTED: ................................................................................................................................ 34 Appendix A – Job Classifications for SEIU Hourly Unit Personnel ............................................ 35 Appendix B- Salary Schedule ....................................................................................................... 46 Appendix C – Public Agency Retirement System (P.A.R.S.) Plan .............................................. 47 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 7 Packet Pg. 11 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 5 of 47 MEMORANDUM OF AGREEMENT City of Palo Alto and Local 521, SEIU HOURLY UNIT PREAMBLE This Memorandum of Agreement is entered into by the City of Palo Alto (hereinafter referred to as the City) and Local 521 Service Employees International Union (hereinafter referred to as the Union). Employee, for the purposes of this Memorandum of Agreement, shall mean an employee assigned to a classification within the SEIU Hourly unit. This Memorandum of Agreement is pursuant and subject to Sections 3500 et, seq. 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. Pursuant to Sections 3500 et. seq. 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 hourly employees who are regularly scheduled and who work a minimum of four hundred sixteen (416) hours per fiscal year. This does include PERS exempt employees. This does not include on call employees without regular schedules and who are hired to work occasionally for special projects. This does not include employees employed primarily to work seasonal or recreational programs and who may work intermittently outside their recreational season. This unit shall for purposes of identification be titled the SEIU Hourly unit Unit, and includes employees in the classifications listed in Appendix A attached. The City shall notify the Union in writing of the development of a new hourly classification and upon request will meet and confer regarding inclusion of the classification in the SEIU hourly Hourly unit Unit. The parties agree that hourly employees are considered to be in the bargaining unit while that employee is employed by the City of Palo Alto, when they work (including all paid hours) 416 hours or more within a fiscal year. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 8 Packet Pg. 12 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 6 of 47 Any Limited Hourly employee that accumulates 416 hours worked or more within a fiscal year, shall be converted to the SEIU 521 Hourly Unit by the City of Palo Alto. Upon conversion of an eligible hourly employee from the Limited Hourly status to the SEIU 521 Hourly Unit status, all wages and benefits due the employee will be paid and provided to the employee. All current and retroactive wages and/or benefits shall be back dated to their eligibility date of their status and recognition, as a SEIU 521 Hourly Unit employee. Section 2. No Discrimination. The City and Union agree that no person employed by or applying for employment hereto shall be discriminated against because of race, religion, creed, political affiliation, color, national origin, ancestry, union activity, age, disability, sexual orientation, or gender. 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 II - UNION SECURITY Section 1. Notice. When a person is hired in a job covered in Article I, the City shall notify that person that the Union is the recognized bargaining representative for the employee and give the employee a current copy of the Memorandum of Agreement. When a group employee orientation is held for new employees of the bargaining unit, a Union Representative may make a presentation to such bargaining unit employees for the purpose of explaining matters of representation. New employees shall be required to attend orientation. The Director of Human Resources may make an exception if extraordinary circumstances interfere with the employee’s ability to attend. If the Director grants an exception, the employee and Union shall be granted a thirty (30) minute presentation at the employee’s report location for union orientation. Section 2. Agency ShopPayroll Deductions. Every employee in the bargaining unit covered by this Memorandum of Agreement shall: (1) remain a member in good standing of the Union; or (2) pay to the Union an Agency fee, at a rate specified by the Union; or, (3) in the case of an employee who certifies that he/she is a member of a recognized religion, body or sect which has historically held conscientious objection to joining or financially supporting public employee organizations, pay a charity fee, equal to Union membership dues, to a non-religious, non- labor charitable fund exempt from taxation under Section 501. (c)(3) of the Internal Revenue Code, chosen from one of the following three charitable organizations agreed to by the City and the Union (or any successor organization(s) agreed to by the City and the Union): Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 9 Packet Pg. 13 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 7 of 47 United Way of California Community Health Charities Environmental Federation of California Union members may declare their intention to terminate Union membership by certified letter, return receipt requested, to the Director of Human Resources and the Union. In order to be effective, the notice must be filed during the 30-day period between 60 and 90 days prior to expiration of the Memorandum of Agreement. The Employer shall accept authorization(s) of dues deduction, Union membership, and COPE deduction that bear a hand-written signature or a web-based/online signature authorization acceptable to the Union and allowable under the state and federal law. Employees who are newly hired into or who join the bargaining unit shall elect one of the above payment deduction options by completing and submitting the Employee Election form within thirty (30) calendar days of being hired into a classification covered by this MOA. To qualify for deduction of the Charity Fee, the employee must certify to the Union and City that he/she is a member of a bona fide religious body or sect that has historically held conscientious objection to joining or financially supporting employee organizations. The employee is required to submit to the City and the Union a notarized letter signed by an official of the bona fide religion, body, or sect certifying that person’s membership. Upon request, the City shall provide to the Union a report of payments made by employees that qualify for the Charity Fee option in this subsection. The deductions in this Section shall not apply during any period where an employee is in an unpaid status. Involuntary Agency Fees Deduction Process: The City shall deduct an Agency Fee at a rate specified by the Union from the salary of each bargaining unit member who has not authorized a dues deduction, Agency fee deduction or charity fee in writing within the time stated in this Section above. The Union certifies that it has consulted with knowledgeable legal counsel and has thereby determined that this involuntary Agency fee deduction process satisfies all constitutional and statutory requirements. Agency shop may be rescinded only in accordance with the provision of state law. 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 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 10 Packet Pg. 14 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 8 of 47 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 the Agency Shop Arrangement. Sign-up forms for deduction of union dues, Agency fees and charity fees shall be provided by the Union. The parties agree to work out administrative procedures when an employee is in non-pay status. Dues will not be deducted when circumstances result in a negative paycheck. Section 23. Documentation. The City shall supply the Union with the information described under subsections (a) and (b) of this Section: (a) The City will provide SEIU, when available, with the name, job title, department, work location, work, home, personal cellular telephone number, personal email address, and home address of any new employee within 30 days of hire or by the first pay period of the month following hire. (b) The City will provide SEIU with the list, enumerated above, of all information for all employees in the bargaining unit at least every 120 days unless more frequent. (c) The City shall supply the Union with the documentation required by California Assembly Bill 119. (d) The Union shall supply the City, and as applicable, the employees, with the documentation required by Government Code Section 3502.5(f). Section 34. Payroll Deduction. (a) The City shall deduct Union membership dues, service fees, charity fees, and any other mutually agreed upon payroll deduction, which may include voluntary COPE (Committee On Political Education), at the check-off area, from the bi-weekly pay of bargaining unit employees. 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. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 11 Packet Pg. 15 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 9 of 47 (b) 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. The dues/fees deduction must be authorized in writing by the employee on an authorization form acceptable to the City and the Union, except as provided in Section 2(e) and Section 2(h) above. City shall remit the deducted dues or fees to the Union as soon as possible after deduction. Section 45. Bulletin Boards and Departmental Mail. The Union shall have access to inter-office mail, existing bulletin boards in unit employee work areas, and the existing Union-paid telephone answering device for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission. The Union may send email messages only for the purposes set forth above. The IT Department will maintain the SEIU list and keep it current. The Union access to email is based on the following conditions: 1) emails to the SEIU list will be copied to the Human Resource Director 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 per year by the SEIU Chapter Secretary. Section 56. Access to Union Representatives. Representatives of the Union are authorized access to City work locations for the purpose of conducting business within the scope of representation, provided that no disruption of work is involved and the business transacted is other than recruiting of members or collecting of dues, and the Representative must notify the Human Resources Department Office prior to entering the work location. Section 67. 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 78. Notification to the Union. 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. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 12 Packet Pg. 16 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 10 of 47 Section 89. 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 910. City Council Materials. 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 may be picked up at the City Clerk's Office during business hours. Section 101. Temporary Agency Reporting. 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 112. Job Postings. Job postings for classifications classification positions covered by this Agreement shall include a statement that the position is covered by this Collective Bargaining Agreement and that union dues or agency fees may be required. Section 123. Contracting Out. The City through the labor management process will keep the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SEIU bargaining unit work traditionally performed by bargaining unit members at least thirty (30) days prior to the release of the City Manager’s proposed budget. The City will notify the Union in writing at least ninety (90) days prior to contracting work which has been traditionally performed by bargaining unit members, where such contracting will result in layoff or permanent reduction in hours. Within the ninety (90) day period of contracting out, both parties may offer alternatives to contracting out and meet and confer on the impact of such contracting out of a bargaining unit employee work. The City will collaborate with the Union regarding the potential result of a layoff of bargaining unit members. The City will provide all available job opportunities within the City of Palo Alto and/or the contracting out agency or entity to the Union. The Union will communicate with impacted bargaining unit members with regards to any interest a member may have in securing another job position, in lieu of a layoff, whenever possible. 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 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 13 Packet Pg. 17 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 11 of 47 reasonable effort to identify the names of the vendors on the list and the nature of the work provided by each vendor. Section 134. New Employee Procedure/Process. New employees hired and assigned to classifications covered by the SEIU Unit shall be advised by the City that Local 521, Service Employees International Union, is the recognized bargaining representative in said unit. The City agrees to distribute to all new employees in the SEIU Unit a reasonable amount of materials provided by the Union at its expense. The City will provide to the Union written notice in accordance with California Assembly Bill 119, a list of employees attending the City’s new employee orientation that includes each employee’s identification number, name, job classification, department, work location (title and address), work phone number (if available in the payroll system), work email address (if available in the payroll system), hire date, and, subject to the individual employee’s consent, the employee’s home address, personal mobile number, home phone number, and personal home email address. A representative(s) of the Union shall be permitted to make a thirty (30) minute presentation and present written materials during a portion of the orientation for which attendance is mandatory. No representative(s) of management shall be present. One steward or chapter officer shall be granted release time for this purpose. ARTICLE III. – STEWARDS Section 1. Designation. 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. Release Time. It is agreed that, as long as there is prior notice to the Supervisor with no disruption of work, one (1) Steward shall be allowed reasonable release time away from their work duties, without loss of pay, to act in representing 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. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 14 Packet Pg. 18 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 12 of 47 Grievances may be transmitted on City time. All Steward release time shall be reported on time cards timecards using Internal Order 80005 or its successor and a short-text notation describing the nature of the release time (e.g. “Steward release time”, “bargaining release time”, “Labor-Management Committee release time”, etc.). Section 3. Advance Notification and Approval. The Union agrees that the Steward shall give advance notification to his/her supervisor and receive permission before leaving the work location, except in those cases involving emergencies where advance notice cannot be given. Management permission to leave the worksite under this section shall not be unreasonably denied. Section 4. Timecard Reporting. One Union Steward per affected Department, who is a City employee, 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 using Internal Order 80005 or its successor and a short-text notation describing the nature of the release time (e.g. “Steward release time”, “bargaining release time”, “Labor-Management Committee release time”, etc.). Section 5. Storage of Union materials. 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 6. Labor/Management Meetings. Two Hourly Unit employees from different divisions shall be allowed a reasonable amount of release time off to participate in monthly Labor/ Management Meetings. Such meetings may be included with the Classified Unit’s Labor/Management meetings if appropriate. Such time shall be reported using Internal Order 80005 or its successor and a short-text notation describing the nature of the release time (e.g. “Labor-Management Committee release time”, etc.). ARTICLE IV. - REDUCTION IN FORCE For the purposes of this Section, length of service shall be defined as all straight time hours worked by that employee for the City of Palo Alto. Section 1. In the event of reductions in force, reductions shall be accomplished whenever possible through attrition. Section 2. 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. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 15 Packet Pg. 19 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 13 of 47 Section 3. Seniority and Service Ties. 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 an hourly classification with no adjustment for leaves of absence. Length of service ties will be determined by lot. Employees laid off due to the above reasons will be given written notice at least thirty (30) 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 hourly 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 at termination within 72 hours of the date of termination. This does not include any amounts payable as PERS contribution refunds, if any. Section 4. Bumping Rights. Employees identified for layoff who have seniority (bumping) rights to their current or previously held classification within the representation unit must declare their intention to exercise these rights within seven (7) regularly scheduled 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 successfully bump, the employee must be qualified, and capable of performing all work in the position bumped. An employee who declares bumping rights may not also claim priority re-employment rights. For purposes of this section of the Agreement, the term "working days" shall mean Mondays through Fridays, exclusive of holidays. When employees declare their intention to exercise their seniority (bumping) rights, the City will provide the Union with a current list of the least senior incumbents to their current or previously held classification, within five (5) working days from the date employees exercise their seniority (bumping) rights, with the mutual goal to offset a potential lay-off of the impacted employee(s). Employees who are in jeopardy of being laid off and have waived their right to bump or when there are no positons positions that exist within the current or previously held classification for the employees to exercise their right to bump, employees will have priority hiring rights for any vacant budgeted positions within the City. For the purposes of this section, priority hiring is defined as sole consideration by the hiring manager for any position where the employee meets the minimum qualification or through a combination of knowledge and experience can be reasonably assumed to meet the minimum qualifications. No other internal or external Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 16 Packet Pg. 20 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 14 of 47 candidates will be considered until a final determination has been made by the hiring manager in regards regard to the priority hire. If more than one (1) employee in jeopardy of being laid off exercises their priority hiring status, then all employees with priority hiring status will be considered simultaneously. This section shall not constitute any guarantees to appointment of positions or expansion of bumping rights. When employees exercise their priority hiring status rights, the City will provide the Union with a current list of all vacant budgeted positions at the City within five (5) working days from the date the employees exercise their priority hire status, with the mutual goal to offset a potential lay-off of the impacted employee(s). When an employee secures a position with the City through the priority hire process, all reasonable measures will be taken to ensure and support a successful transition into their new position. Section 5. Re-Employment List. The names of persons 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 person with the highest seniority on a division re- employment list for a particular classification when a vacancy exists in that classification in that division shall be offered the appointment. Names shall be carried on a re-employment list for a period of one (1) year from the date of separation from City services or change of classification through bumping. Upon re-employment within the one-year period, the employee's hire date of record at the time of layoff will be reinstated. Section 6. Reinstatement. Employees laid off pursuant to Section 2 who are reinstated to regular position within sixty days shall retain the sick leave balance they had at the time of layoff. Section 7. No representation unit employee will be laid off or remain on a re-employment list when intermittent hourly and seasonal hourly employees are performing substantially all the duties of the classification of the hourly employee receiving a layoff notice or on a re-employment list. ARTICLE V. - PERSONNEL ACTIONS Section 1. Probationary Period. Each new employee shall serve a probationary period of six (6) months of continuous employment calculated from the employee’s date of hire in a covered classification and excluding all periods of leave and light duty assignments. 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 each probationary employee on or before expiration of the probationary period. Normally, this appraisal will be given at the end of six months. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 17 Packet Pg. 21 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 15 of 47 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 as scheduled by Management. Personnel evaluations are not appealable subject to appeal 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 review shall be made in writing within ten (10) working days following the review meeting. Section 3. Personnel Files. Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Union Representatives. An employee or the Union shall be allowed, upon reasonable request, copies of materials in an employee's personnel file relating to a grievance. 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 in writing. Section 5. Full Time Opportunities. Full time job opportunities for classifications within the Hourly unit and the Classified unit will be posted for at least ten (10) working days (Monday through Friday) prior to selection. Outside recruitment may be used for full time openings and may begin at the time of posting, or any time thereafter. Section 6. Equitable Rotation. In assigning employees to regular schedules or special assignments, transfer, standby, overtime, or time off selection, ability to perform the work, length of service and/or equitable rotation shall determine the assignments. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 18 Packet Pg. 22 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 16 of 47 Section 7. Internal Eligibility. Non-probationary employees in the Hourly Unit are eligible to apply for any posted SEIU Classified Unit promotional employment opportunity. Such participation shall be on the same basis and on the same terms as applies to internal Classified Unit applicants, except as provided otherwise by the terms of the applicable City-SEIU Classified Unit MOA or other applicable agreement between the City and the SEIU Classified Unit. Unless otherwise provided by the City-SEIU Classified Unit MOA or other applicable agreement between the City and the SEIU Classified Unit, the seniority of an Hourly Unit applicant shall be determined by total hours worked divided by two thousand eighty (2080). The parties acknowledge that this paragraph will have effect only upon written agreement between the City and SEIU Classified Unit to permit its application and for the duration of such agreement. Section 8. Work in SEIU Classified Unit Vacancies. An employee in the Hourly bargaining unit may perform the duties of a vacant SEIU Classified bargaining Unit position for up to six months. However, if before the six month period ends the City initiates and remains engaged in an active recruitment and selection process (i.e. such steps as advertising, posting, development of an employment candidate list, and interviews) with the objective of filling the vacancy the City shall be entitled to have the employee in this unit continue to perform the duties until a regular incumbent is hired and commences work. In the absence of an active recruitment, the City’s Human Resources Director (or his or her designee) and the Union may agree in writing to extend this period for one or more three month increments. The Union agrees that it shall not unreasonably withhold agreement for reasonable extensions of reasonable duration. Members of this bargaining unit may be employed in vacant Public Safety Dispatcher positions without application of the limitations set forth in this paragraph. ARTICLE VI - PAY Section 1. Wages. Base wage rates and ranges of covered classifications are set forth in Appendix B (Salary Schedule) of this Memorandum of Agreement and reflect the following increases: Effective the first full pay period following ratification by the City Council, the salary ranges of all represented classifications will be increased by four percent (4.0%). Effective the first pay period following ratification and adoption of this agreement by the City Council, all base wage rates for the represented classifications set forth in this Agreement shall be increased by three percent (3%). Effective the first full pay period including July 1, 2024, the salary ranges of all represented classifications will be increased by four percent (4.0%). Effective the pay period including July 1, Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 19 Packet Pg. 23 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 17 of 47 2018, base wage rates for the represented classifications set forth in this Agreement shall be increased by two and a half percent (2.5%). Effective the pay period including July 1, 2019, base wage rates for the represented classifications set forth in this Agreement shall be increased by two and a half percent (2.5%). Effective the pay period including July 1, 2020, base wage rates for the represented classifications set forth in this Agreement shall be increased by two percent (2%). Targeted Adjustments: For external and internal wage alignment, the salary rates for the pay step level job classifications, shall be increased the first full pay period following adoption by the City Council, as described below: • 2.5% Wage Increase: o Arts and Science Professional (Aide, Technician, I – III) - H o Custodial Aide - H o Custodial Assistant – H o House Manager – H o Instructor (Aide, I – III) - H o Maintenance Assistant - H o Recreation Leader (I – III, Eliminate Aide as a classification) - H o Stock Clerk – H o Zoological Assistant – H • 5% Wage Increase: o Assistant Park Ranger - H o Library Clerk - H o Library Page - H o Open Space Technician – H • All of the remaining nine (9) SEIU-H Pay Step Level job classifications not listed above, will receive a 1% wage increase, as described below: o Administrative Specialist I - H o Administrative Specialist II - H o Building Service Person - H o Clerical Assistant – H o Librarian o Print Shop Assistant – H o Project Construction Inspector -H o Project Specialist – H o Technical Specialist – H Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 20 Packet Pg. 24 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 18 of 47 The four (4) Minimum to Maximum Pay Range job classifications, will receive a 2.5% wage increase adjustment to the Minimum Pay Range only, the first full pay period following adoption by the City Council, as described below: o General Laborer -H o Inspector – H o Journey Level Laborer – H o Staff Specialist – H Section 2. Step Increases. Hourly employees are to be given a performance review after six months from date of hire and annually thereafter; improvement, efficient and effective service will warrant a salary step increase. Subsequent salary reviews are based on performance appraisals and will depend upon demonstrated satisfactory job performance. If an employee’s performance evaluation is delayed past the employee’s review date and the reviewing manager determines that the employee’s demonstrated job performance warrants the step increase, the increase shall take effect retroactive to the employee’s originally scheduled review date. (a) City Departments may elect to provide step level increases to a SEIU Hourly employee at any time during their employment with the City. The department may elect a merit step level increase based on an employee’s outstanding job performance at any time. (b) Employees promoted within the SEIU Hourly classifications shall be placed at the closest wage step to their current hourly rate; this can never result in a loss in pay to the employee. Section 3. Working Out of Classification. The term ‘working out of classification”, also referred to as WOC, is defined as a Management authorized assignment to a budgeted Hourly Unit position or a General Unit position on a temporary basis, wherein all significant duties are performed by an individual holding a classification within a lower compensation range. The WOC position serves as a temporary measure to cover a vacancy in the Hourly Unit or the General Unit for a reasonable short-term timeframe. For any timeline extensions of the WOC position, the City and the Union will communicate via phone or e-mail and/or meet to discuss the status of the WOC extension. The Union agrees that it shall not unreasonably withhold agreement for a reasonable extension of a reasonable duration for any SEIU/City WOC position. The City agrees that it shall provide an ongoing recruitment effort pertaining to the vacant WOC position in a timely and reasonable manner. Pay for working out of classification shall be as follows: Employees appointed on a “working out of classification” basis will receive acting pay within the range of the higher classification beginning the first (1st) workday of the assignment. Pay for working out of classification will be determined by the salary step of the higher Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 21 Packet Pg. 25 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 19 of 47 classification which the employee would be compensated, if permanently appointed to that classification. Employees in the working out of classification position, shall be placed at the closest higher pay step level to their current hourly rate. The term "working out of classification" is defined as a Management authorized assignment to a budgeted Hourly or Classified position on a temporary basis wherein all significant duties are performed by an individual holding a classification within a lower compensation range. Pay for working out of classification shall be as follows: Employees appointed to "working out of classification" basis will receive acting pay within the range of the higher classification beginning the sixth (6th) consecutive work day of the assignment. Pay for work out of class will be determined by the salary step of the higher classification which the employee would be compensated if permanently appointed to that classification. 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. Section 4. Direct Deposit. Beginning in the first pay period following union ratification and adoption of this Agreement by the City Council, 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 VII - HOURS OF WORK, OVERTIME Section 1. Work Week and Work Day. The workweek for hourly employees shall be no greater than forty (40) regularly scheduled hours. An employee will work the hours assigned by the employee’s supervisor. Overtime work must be approved by a supervisor prior to being performed. Section 2. Overtime Work. An employee will receive overtime at the rate of time and one-half for all hours paid after 40 hours in a workweek. Section 3. Work Shifts. Employees may be assigned to work shifts with scheduled starting and quitting times. For employees assigned to a regular work shift, should conditions necessitate a change in starting and quitting times, the Employee will be notified ten (10) working days in advance and permitted to discuss such changes with the City. The Employee may request the Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 22 Packet Pg. 26 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 20 of 47 presence of his/her Union Representative at the meeting with the City. This however, shall not preclude the City’s right to effect schedule changes dictated by operational necessity, nor shall this provision apply to day-to-day changes needed to cover short-term unexpected absences. This section does not apply to overtime scheduling. Section 4. Lunch and Break Periods. Employees will be granted a minimum half hour (1/2 hour) unpaid meal break after five (5) hours of work, unless the entire shift is only six (6) hours, in which case the employer and employee may agree to forgo the meal break. If dictated by the operational needs of a department, and upon agreement by the City and the Union, employees may take an “on duty” lunch period which shall be counted as time worked. All employees in the bargaining unit will be granted a paid rest period limited to fifteen (15) minutes during each full four (4) hours of work. Departments may make reasonable rules concerning rest period scheduling. Section 5. 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 6. Call-Out Pay. Employees not otherwise excluded from receiving overtime pay and 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. ARTICLE VIII – UNIFORMS The City will provide uniforms, coveralls or shop coats on a weekly basis, or as otherwise furnished, for the jobs and/or classifications that the City requires such apparel. Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. 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. The City shall reimburse employees 75 percent of the cost of job-required safety shoes upon verification of such purchase by the employee. The City will provide rainy weather protection when and where appropriate. The City and the Union will work through the Labor Management process to further develop guidelines for providing uniforms and reimbursements. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 23 Packet Pg. 27 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 21 of 47 ARTICLE IX- HOLIDAYS Section 1. Fixed Holidays: January 1 Third Monday in January (Martin Luther King Day) Third Monday in February Last Monday in May July 4 First Monday in September Second Monday in October Veterans' Day, November 11 Thanksgiving Day Day after Thanksgiving December 25 Either December 24 or December 31 a) Employees who work a regular schedule shall receive holiday pay for the hours they would otherwise be scheduled to work, due to a closure on a Fixed City Holiday. b) Employees who work on a holiday that is an employee’s regular scheduled workday, will receive time and one half for all hours worked on a holiday in addition to any regular holiday pay, for all hours worked on a holiday. c) Employees who work on a holiday that is an employee’s non-regular scheduled workday, will receive time and one half for all hours worked on a holiday. Employees will not receive regular holiday pay. d) SEIU 521 Hourly Unit employee workdays are defined as Monday-Sunday. e) When a City Fixed Holiday falls on a weekend day, the City recognizes the Holiday on the weekday before or the weekday after the City Fixed Holiday. f) The following five (5) City Fixed Holidays may fall on weekend days: January 1, July 4, Veterans’ Day-November 11, December 25 and Either December 24 or December 31. g) Due to a closure on a City Fixed Holiday that falls on a weekend day, employees who are regularly scheduled to work weekend days and do not work on the weekday before or after the City Fixed Holiday, shall receive holiday pay for the hours they would otherwise be scheduled to work. h) Employees who work on a holiday that is an employee’s regular scheduled weekend workday that falls on a City Fixed Holiday and do not work on the weekday before or after Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 24 Packet Pg. 28 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 22 of 47 the City Fixed Holiday, will receive time and one half for all hours worked on a holiday in addition to any regular holiday pay for all hours worked on the holiday. i) Employees who work on a holiday that is an employee’s non-regular scheduled weekend workday that falls on a City Fixed Holiday and do not work on the weekday before or after the City Fixed Holiday, will receive time and one half for all hours worked on a holiday. Employees will not receive regular holiday pay. ARTICLE X- LEAVES Section 1. Sick Leave and Personal Business Leave a. Sick Leave The City shall provide each employee with paid sick leave, earned on the basis of 0.03 hours for each hour paid. Sick leave shall be allowed and used in cases of actual personal sickness or for the care of an immediate family member, including a registered domestic partner, or disability, medical or dental treatment. A maximum of 15 hours per year of sick leave may be used to care for family members, including a registered domestic partner. There will be no pay out of sick leave upon the employee’s termination. If an Hourly Unit member is hired into a permanent position in the General Employee bargaining unit, he or she will retain his or her accumulated sick leave balance. b. Personal Business Leave Effective January 1, 2015, up to ten (10) hours per year of sick leave may be used as authorized for Personal Business Leave. Sick Leave. The City shall provide each employee with paid sick leave, earned on the basis of 0.03 hours for each hour paid. There will be no pay out of sick leave upon the employee’s termination. Sick leave shall be allowed and used in cases of actual personal sickness or for the care of an immediate family member, including a registered domestic partner, or disability, medical or dental treatment. Effective January 1, 2015, up to ten (10) hours per year of sick leave may be used as authorized for personal business. A maximum of 15 hours per year of sick leave may be used to care for family members, including a registered domestic partner. If an Hourly Unit member is hired into a permanent position in the General Employee bargaining unit, he or she will retain his or her accumulated sick leave balance. Section 2. Floating Holiday Effective January 1, 2024, the SEIU Hourly Unit employees shall be excused with pay for the hours they would otherwise be scheduled to work, for one (1) day within each calendar year, which is mutually agreed to by the employee and their supervisor. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 25 Packet Pg. 29 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 23 of 47 The one (1) floating holiday will be deemed forfeited and have no cash value, if not used each calendar year. Section 23. Jury Duty Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties for hours that they are regularly scheduled to work consistent with the requirements of the City's Merit System Rules and Regulations. ARTICLE XI - VOTING TIME When the employee is unable to vote outside the employee’s work hours, time off with pay to vote in any general or direct primary election shall be granted as provided in the State of California Election Code, and notice than an employee desires such time off shall be given in accordance with the provisions of said Code. ARTICLE XII -WORKERS COMPENSATION 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 based upon hourly salary for a period 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 hourly salary at the time of injury for the duration of such temporary disability in conformance with the State law. (c) In case of Subsection (a) above, the employee will continue to accrue sick leave benefits. In the case of Subsection (b), sick leave benefits shall not be accrued. ARTICLE XIII - BENEFIT PROGRAMS Section 1. Medical Insurance Plan. In lieu of providing a medical plan the City provides a medical stipend. This stipend does not apply and will not be payable to employees who are California Public Employee Retirement System annuitants already receiving medical benefits through that system. For the term of this agreement the medical stipend is set at the following amounts: • 3% increase or $0.09 to a total of $3.24 effective the first full pay period following Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 26 Packet Pg. 30 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 24 of 47 ratification by City Council. • 3% increase or $0.10 to a total of $3.34 effective the pay period including July 1, 2018. • 2% increase or $0.07 to a total of $3.41 effective the pay period including July 1, 2019. • 2% increase or $0.07 to a total of $3.48 effective the pay period including July 1, 2020. Effective the first full pay period following ratification by City Council, the medical stipend shall be increased by four and one half percent (4.5%) for a total of $3.64 per hour in paid status. Effective the first full pay period including July 1, 2024, the medical stipend shall be increased by four and one half percent (4.5%) for a total of $3.80 per hour in paid status. If the State of California or federal government adopt or mandate a plan that requires the City to pay in whole or in part for medical services or coverage for employees in the bargaining unit, the stipend provided in this paragraph shall be reduced or cease to the extent of required payments toward the state or federal plan, as applicable. Before implementation of a change, the City shall notify the Union of the amount of the offset and provide an opportunity to meet to discuss the calculation of the amount. Such discussion shall occur within fifteen (15) working days after the City gives notice to the Union. The City’s calculation of the amount of the offset shall be based on the aggregate number of hours worked in the bargaining unit during the fiscal year preceding that in which the state or federal plan takes effect. The City and SEIU will continue to investigate the feasibility of providing Employees with access to medical insurance. Such information will be shared during negotiations for a successor Memorandum of Agreement. ARTICLE XIV - RETIREMENT Section 1. Part-time, Seasonal, Temporary (PST) Retirement Plan. Employees in the Hourly Unit shall participate in the City of Palo Alto PST Retirement Plan, except as described in section 2 below. The plan, summarized in Appendix C, was adopted by the City on June 25, 1994 as a retirement plan alternative for part-time, seasonal and temporary employees to replace Social Security and is currently administered by Public Agency Retirement Services (“PARS”). The City of Palo Alto does not deduct the social security portion of the FICA (Federal Insurance Contribution Act) tax. The City does deduct the Medicare portion of the FICA tax. All hourly employees are required to contribute 7.5% of their salary into the PST Retirement Plan. Section 2. California Public Employees’ Retirement System (“PERS”). PERS annuitants are excluded from participation in the P.S.T. Retirement Plan. Employees in the Hourly Unit who have previously participated in and remain members in the California Public Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 27 Packet Pg. 31 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 25 of 47 Employee Retirement System (“PERS”) or are otherwise required by law to be enrolled in CalPERS shall participate in P.E.R.S. to the extent required by law, in lieu of participation in the P.S.T. Retirement Plan. For example, CalPERS currently requires enrollment of most employees who work over 1000 hours in a fiscal year. Enrollment in CalPERS will be completed consistent with CalPERS rules and regulations. Participation in CalPERS shall be under the retirement formula and cost share in effect at the time the employee is hired into the Hourly Bargaining Unit unless otherwise required by law. If any changes to the CalPERS cost share are negotiated by the City of Palo Alto and SEIU 521 Regular Unit, then those changes will apply to any SEIU hourlies enrolled in the CalPERS system. The City and the SEIU 521 union will notify all SEIU hourlies enrolled in the CalPERS system via written notification within 2 pay periods, when there are any changes to the CalPERS cost share. Section 3. Retirement Contributions. a. PST Retirement Plan Contributions. Employees enrolled in the PST Retirement Plan shall contribute seven and one half percent (7.5%) of wages toward that Plan. b. PERS Employee Contributions. Employees enrolled in the PERS retirement system shall pay the full amount of the applicable employee contribution required by CalPERS for the PERS formula in which the employee is enrolled, as may be changed by CalPERS from time to time. c. Current contributions are as follows: (1) 2.7% at 55 Formula: eight percent (8%) (2) 2% at 60 Formula: seven percent (7%) (3) 2% at 62 Formula: contribution required by the Public Employees’ Pension Reform Act, calculated at fifty percent (50%) of the normal cost. (4) 1% Cost share of employer contribution for all plans ARTICLE XV PARKING Employees are covered by the City’s administrative policy for Hourly parking permits, which includes the following provisions: Permits will be issued for University Avenue Parking Structures only. To be eligible for a parking permit, an hourly employee must work at least 2.5 hours per day for a consistent period of time (this assumes the need to walk back and forth to a garage). If the employee works less than 2.5 hours, they can park, without penalty, in downtown garages given the current 3 hour parking limit. The hourly employee must obtain a signed letter from his or her Department Head verifying the employee’s “consistent” and greater than 2.5 hour schedule for a parking permit and submit the letter with the request for a parking permit. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 28 Packet Pg. 32 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 26 of 47 The parking permit is issued and tracked by Revenue Collections, and is not transferrable. The employee must return the parking permit to Revenue and Collections upon a change to less than a 2.5 hour consistent schedule or termination of employment. ARTICLE XVI PHYSICAL EXAMINATIONS If an 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 at his/her own expense 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 the third 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 XVII - 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 will cooperate with the City by encouraging all employees to perform their work in a safe manner. Section 3. Safety Committee. A Safety committee composed of Management and Union Stewards will meet no less than ten 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. Three (3) Hourly employees will participate in the ten-member Citywide Union/Management safety committee with equal Union and Management membership that 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. The three (3) Hourly participants shall report such time on timecards, using Internal Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 29 Packet Pg. 33 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 27 of 47 Order 80005 or its successor in conjunction with a short-text entry describing the nature of the time spent (e.g. “City-wide Union-Management Safety Committee”). 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 used. Safety grievances shall be submitted at Step III. ARTICLE XVIII - GRIEVANCE PROCEDURE Section 1. 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. Definition. A grievance is: (a) 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) An appeal from a disciplinary action of any kind against an employee covered by this Memorandum of Agreement. Disciplinary action 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. (a) An aggrieved employee may be represented by the Union or may represent himself/herself in preparing and presenting a grievance at any level of review. Grievances may also be presented by a group of employees. No grievance 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 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 30 Packet Pg. 34 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 28 of 47 conditions of other employees represented by the Union. The Union and the Steward will be copied on all written representation unit grievance 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. Requests for release time to prepare a grievance shall be made in accordance with the provisions of Article III, section 3. Beginning with the third step of the grievance procedure, the Chief Steward or Alternate Chief Steward may assist in presenting a grievance and may be present at all Step III, and IV grievance hearings. (c) 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. (d) Should a decision not be rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. (e) The grievance may be considered settled if the decision of any step is not appealed within the specified time limit. (f) If appropriate, the aggrieved employee(s) or the Union and the Department Head may mutually agree to waive Step I and/or Step II of the grievance procedure. (g) Grievances shall be made in writing and submitted on forms provided by the City or on forms which are mutually agreeable to the City and Union. The written grievance shall contain clear, factual and concise language including: (1) the name of the grievant, (2) a statement of the facts upon which the grievance is based, including relevant dates, times and places, (3) specific provisions of the Agreement or specific City rules, policies, or procedures which the party filing the grievance alleges has been violated; (4) a summary of any steps taken toward resolution, and (5) the action the grievant believes will resolve the grievance. (h) 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. (i) 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. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 31 Packet Pg. 35 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 29 of 47 (j) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays. (k) If a mutually agreed solution is reached during any step of this grievance procedure, the agreement shall be placed in writing and signed by the City and the grievant or union. (l) Upon request of either party, meetings to discuss the grievance shall be held at any step in the grievance procedure. Section 4. Grievance Procedure. Step I. Informal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance 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, the employee will reduce the grievance to writing and submit copies to the Department head or his or her designee within fifteen working days of the discussion with the immediate supervisor. The Department Head or designee shall have fifteen working days from the receipt of a written grievance to review the matter and prepare a written statement. Step III. If the grievance is not resolved 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 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, the Department Head’s decision at Step II, and a clear statement of the reasons for appeal. Within fifteen 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 a grievance as defined under 2(a) above is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Union approval. All Step IV appeals must be filed in writing at the Human Resources Department Office within fifteen working days of receipt of the Human Resource Director’s decision at Step 3. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 32 Packet Pg. 36 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 30 of 47 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 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, grant wage increases or decreases, or to decide matters of interest. 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. A grievance as defined under Section 2(b) above (demotion, suspension, reduction in pay or termination) that remains unresolved after the conclusion of step III of the grievance procedure, shall be reviewed by a City Hearing Officer. Appeals to a City Hearing Officer must be filed with the Human Resources Director in writing within fifteen (15) working days of the receipt of the Step III Grievance response. Within sixty (60) working days, the City Hearing Officer shall review the matter, hold a hearing with the City and the affected worker, and prepare a written recommendation to the City Manager. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 33 Packet Pg. 37 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 31 of 47 The City Manager shall issue a final and binding decision within fifteen (15) working days after receipt of the City Hearing Officer's recommendation. The City Manager may accept, reject or modify the City Hearing Officer’s recommendation. The City Manager's decision shall be final, binding and not be subject to further appeal. ARTICLE XIX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION Section 1. Right to Discipline The City has the right to discipline, demote, or discharge employees for cause. Section 2. Written Notice 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. 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 3. Preliminary Notice of Discipline. Prior to imposing disciplinary action involving a disciplinary suspension, demotion, reduction in pay, or discharge of a non-probationary employee, 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. (f) Statement advising the employee of his/her right to appeal from such action, and the right to Union representation. (g) The date and/or the procedure for responding to the notice. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 34 Packet Pg. 38 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 32 of 47 Section 4. Skelly Meeting. The employee who receives a notice pursuant to section 3 above 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) 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) 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 to the employee’s last known address on file with the Human Resources Department. 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. ARTICLE XX – 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 Memorandum of Agreement. ARTICLE XXI – OUTSIDE EMPLOYMENT The provisions of Article 4.7 of the Government Code of the State of California will govern the determination of incompatible outside employment. ARTICLE XXII PROMOTIONAL/CONVERSION OPPORTUNITES The City and Union will meet on a quarterly basis to review the possibility of converting long term ongoing temporary-hourly positions to regular status. A part of such a meeting may be a discussion regarding promotional opportunities of Hourlies to Classified positions. ARTICLE XXIII – PROVISIONS OF THE LAW Section 1. 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. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 35 Packet Pg. 39 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 33 of 47 Section 2. 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 XXIV – 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 XXV – TERM This Memorandum of Agreement shall take effect on ratification and signing by the parties, and shall expire on June 30, 20251. Either party may serve written notice upon the other party during the period between ninety and sixty days prior to its expiration date, of its desire to amend this Memorandum of Agreement. If, at the time this Memorandum of Agreement would otherwise terminate, the parties are negotiating a new Memorandum of Agreement, upon mutual agreement of the Union and the City Manager the terms and conditions of this Memorandum shall continue in effect. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 36 Packet Pg. 40 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 34 of 47 EXECUTED: FOR LOCAL 521, SEIU: FOR CITY OF PALO ALTO: Angel Jose Picon, Chief Spokesperson Ed Shikada SEIU Worksite Organizer City Manager Bunny Bornstein Sandra Blanch Chief Steward Human Resources Director Marlon Kasberg Tori Anthony Bargaining Team Member Manager Employee Relations Sandhya Uthup Human Resources Representative Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 37 Packet Pg. 41 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 35 of 47 Appendix A Job Classifications for SEIU Hourly Unit Personnel Administrative Specialist I - H Performs administrative work that requires advanced skills or knowledge in support of a department/division or program. Administrative Specialist II – H Performs more complex administrative work that requires advance skills or knowledge in specialized software programs and data analysis in specialized areas in support of a department/division or program. Two years of experience equivalent to that of an Administrative Specialist I. Arts & Science Aide - H Under general supervision, performs general unskilled and some semiskilled tasks in support of theater, arts and museum programs. Arts & Science Professional I - H Under general supervision, performs highly skilled jobs in support of performing and visual arts. Examples would include exhibit design and installation, graphic design, exhibit mechanical and electrical design, exhibit problem solving, installation and maintenance, materials and parts sourcing for exhibits, managing outsourced custom fabrication of specialty parts, and working with Arts & Sciences Producers on design of exhibits, theater scenery, costume & lighting design and direction, studio supervision, development of educational programs, etc. Arts & Science Professional II - H Under limited supervision, performs highly specialized jobs in support of performing and visual arts. Examples would include exhibit design and installation, graphic design, exhibit mechanical and electrical design, exhibit problem solving, installation and maintenance, materials and parts sourcing for exhibits, managing outsourced custom fabrication of specialty parts, and working with Arts & Sciences Producers on design of exhibits, theater scenery, costume & lighting design and direction, studio supervision, development of educational programs, etc. Two years of experience equivalent to that of an Arts & Science Professional I. Arts & Science Professional III - H Independently performs highly specialized jobs in support of performing and visual arts. Examples would include exhibit design and installation, graphic design, exhibit mechanical and electrical design, exhibit problem solving, installation and maintenance, materials and parts sourcing for exhibits, managing outsourced custom fabrication of specialty parts, and working with Arts & Sciences Producers on design of exhibits, theater scenery, costume & lighting design and direction, studio supervision, development of educational programs, etc. Five years of experience equivalent to that of an Arts & Science Professional I. May require lifting up to 15 pounds Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 38 Packet Pg. 42 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 36 of 47 Arts & Science Technician - H Under supervision, performs paraprofessional and skilled support to a specific performing or visual arts program area such as lighting, props, building, painting, stitching – etc. Assistant Park Ranger - H Positions requiring at least 2 years of experience and specialized skills or advanced certificates for First Aid, CPR, and heavy equipment operation. Prior experience as an open space technician or park aide is essential. Building Serviceperson – H Under limited supervision, performs custodial duties and other related work as required to maintain City buildings and facilities in a clean and orderly condition. Members of this classification may be assigned to perform either public works duties or park duties. Two years of experience equivalent to that of a Custodial Assistant. Clerical Assistant - H Under supervision, performs routine and repetitive computer inputting and clerical tasks, and performs related work as required. May require cash handling. Custodial Aide - H Under close supervision, this entry-level position performs basic custodial duties as required to maintain City buildings and facilities, performs room set-ups and take-downs, and other related work. Custodial Assistant - H Under general supervision, performs custodial duties and other related work as required to maintain City buildings and facilities in a clean and orderly condition. Members of this classification may be assigned to perform either public works duties or parks duties. General Laborer – H Performs general manual tasks. Performs various types of manual labor as needed. Possesses knowledge of commonly-used concepts, practices, and procedures within a particular field. Performs tasks in conformance within pre-established instructions. Works under general supervision. Uses very limited independent judgment similar to that expected of an apprentice- helper level laborer, consistent with pre-established instructions. May report to a lead worker, but typically reports to a supervisor. Requires a high school diploma or its equivalent with 1 year of related experience. Salary to be determined – an hourly rate above $50/hour must be approved by the Director of Human Resources before the City extends an offer of employment. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 39 Packet Pg. 43 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 37 of 47 House Manager - H Facility supervisor of special events, productions, concerts, rentals – etc. Involves high public contact and customer service, including enforcement of rules and regulations. May included set- up of events. Inspector – H Provides inspections for capital and maintenance work, buildings and structures in any stage of construction, alteration or repair. Insures Ensures compliance with standard construction practices, approved plans and specifications, governing laws and City ordinances. Prepares and maintains records of inspections, contractor’s daily activities, verification of materials and quantities used, notification to and contact with the residents in the project area, violation notices, investigations and other related data and information. Salary to be determined – Minimum base of $26.87. An hourly rate above $50/hour must be approved by the Director of Human Resources before the City extends an offer of employment. Instructor Aide - H Under general supervision, performs administrative work in support of Instructors in areas such as course preparation, classroom assistance and related activities. May require lifting up to 15 pounds. Instructor I - H Under general supervision, prepares classes, programs and camp curriculum, presents classes and field trips for schools and family audiences, and provides assignments to Instructor Aides and volunteers. Requires previous teaching experience. Requires prior in-depth knowledge of the disciplines to be taught. May require lifting up to 15 pounds. Instructor II - H Under limited supervision, prepares classes, programs and camp curriculum, presents classes and field trips for schools and family audiences, and provides assignments to Instructor Aides and volunteers. Requires at least two years of experience equivalent to that of an Instructor I. May require lifting up to 15 pounds. Instructor III-H Independently prepares classes, programs and camp curriculum, presents classes and field trips for schools and family audiences , and provides direction and mentoring for Instructor Is and IIs, Aides and volunteers. Serves in a leadership capacity within the department. Requires at least 4 years of teaching experience and in-depth knowledge of the disciplines to be taught. May require lifting up to 15 pounds. Journey-Level Laborer – H Performs various tasks involving physical labor in or on buildings, construction sites, demolition sites, streets, sidewalks, or on other construction projects. May operate hand and power tools of all types (e.g. air hammers, earth tampers, cement mixers, small mechanical hoists, surveying Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 40 Packet Pg. 44 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 38 of 47 and measuring equipment, and various other equipment and instruments). May clean and prepare sites, dig trenches, set braces to support the sides of excavations, erect scaffolding, clean up rubble and debris, and remove hazardous waste materials; may assist other craft workers. Uses independent judgment similar to that expected of a journey level laborer, within pre- established instructions similar to and consistent with industry practices for journey level laborers. Works under general supervision. Typically reports to a lead worker or supervisor. Requires a high school diploma or its equivalent with 1-3 years of related experience. Salary to be determined – an hourly rate above $50/hour must be approved by the Director of Human Resources before the City extends an offer of employment. Librarian - H Under supervision, assists customers with reference inquiries, provides instruction in the use of library resources and equipment; shelves materials and assists with core management or organization of materials. Distinguishing Characteristics: The Librarian classification is the professional entry level classification within the Library Division. The Librarian has the professional knowledge to identify, develop, interpret, and evaluate all policies, procedures, programs and services to ensure the best quality of service to public library users. It is a broad classification which covers a variety of work situations which require expertise in areas of primary responsibility, as well as in common areas such as materials selection, public library service and in computerized information systems. Significant portion of workday includes direct public contact. Work hours may include early mornings, evenings and weekends. ESSENTIAL DUTIES: Essential and other important responsibilities and duties may include, but are not limited to, the following: • Performs routine circulation tasks required to directly serve public, including registering and maintaining files of borrowers; interpreting customer accounts and checking in and out library materials via computerized equipment; accepting, payments for fines, bills, fees; assisting customer with inquiries regarding availability and status of items in collections, and interviewing and assisting users regarding circulation accounts and services. Refers circulation problems to circulation staff or manager. • May conduct library programs for children and adults; conduct tours and classes. • May conduct reference interview and analyze, interpret and answer inquiries utilizing resources in Palo Alto Libraries as well as other libraries and the community, referring unusual questions to a Senior Librarian (Librarian II) or supervisor; assist customers in use of facility including catalog, indexes, reference books and technology. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 41 Packet Pg. 45 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 39 of 47 • Performs library programming, including planning, coordination, promotion and the conduct of programs; cooperates with other City departments, community and library groups with program co-sponsorship. • Prepares displays to market the library’s collection; may write regular newsletter articles, book reviews and program announcements for e-newsletters and publications; assists with social media. • May update library web pages; update online calendars; contribute calendar items to community organizations and data bases. • Selects and de-selects library materials in one or more subject areas based on knowledge of budget available, collection size, analysis of community past usage patterns and other criteria; processes discarded materials. • Assist with recruits, interviews, schedules, trains, initiates and coordinates, work of clerical, paraprofessional, temporary and/or volunteer staff as assigned. • May collect, maintain and report statistical records for a variety of library measures. • As directed, performs copy and original cataloging and classification efficiently utilizing online computerized cataloging system; assigns access points for materials; establishes new bibliographic computer records in accordance with recognized standards. • Maintains specific library collections and equipment including housing, physical maintenance and arrangement. MINIMUM QUALIFICATIONS: Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills, and abilities which would typically be acquired through: • Master’s Degree in Library and Information Science or related education preferred. KNOWLEDGE, SKILLS, AND ABILITIES: • Ability to work effectively with public and co-workers in variety of circumstances. Ability to work with wide variety of people. • Knowledge of alphabetical and numerical filing systems. • Knowledge of the library catalog. • Ability to work varied schedule including early mornings, evenings and weekends • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include sitting for extended periods of time and operating assigned library equipment. • Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions. • Ability to operate assigned equipment. • Ability to make sound decisions in a manner consistent with the essential job functions. WORKING CONDITIONS / PHYSICAL REQUIREMENTS: Work in a library environment with the public, maintaining a professional appearance; sustained posture in a standing, walking or seated position for prolonged periods of time; perform bending, lifting, crouching and pushing items weighing up to 50 pounds; perform repetitive small hand and Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 42 Packet Pg. 46 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 40 of 47 arm motions for prolonged periods of time; may travel to other library facilities; exposed to computer screens for prolonged periods of time. Library Clerk - H Under close general supervision performs technical and clerical tasks; assists customers with their accounts; shelves materials; performs technical and clerical tasks as assigned. Distinguishing Characteristics: Library Clerk is a classification found in the Library Department and is distinguished by the performance of various technical and clerical duties under general supervision. Work hours may vary and include nights and weekends. Includes direct public contact. Some previous knowledge of library operations required. ESSENTIAL DUTIES: Essential and other important responsibilities and duties may include, but are not limited to, the following: • May answer customers’ questions. • Checks in/out items; performs standard, holds, special handling and sorts; issues library cards. • Works at the Accounts Desk; handles customer accounts and fines; provides computer assistance; performs shelving. • May assist customers with library technology. • Maintains computer files for library materials; adds, deletes and updates information. • Data enters bibliographic data into the online library system. • Communicates with vendors to request approved items or to ask questions; refers further communications to the supervisor. • Accepts and unpacks deliveries and shipments of library materials; checks for accuracy; returns incorrect or damaged materials to vendors. • Receives and invoices materials into the library’s computer system. • Performs RFID tagging Performs shelf reading. • Assists in the setup of programs; performs program cleanup. • Processes LINK+ items and locates items listed on hold for the library branch or on reserve for LINK+. • Assists with special projects and programs. • May perform mail delivery. • Provides basic assistance to customers. • Performs related duties and responsibilities as required. MINIMUM QUALIFICATIONS: Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills, and abilities which would typically be acquired through: • High school diploma or equivalent and 6 months experience working in a library Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 43 Packet Pg. 47 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 41 of 47 KNOWLEDGE, SKILLS, AND ABILITIES: • Ability to work effectively with public and co-workers in variety of circumstances. Ability to work with wide variety of people. • Knowledge of library procedures and item shelving structure. • Knowledge of alphabetical and numerical filing systems. • Knowledge of a personal computer and various software applications. • Knowledge of effective customer service. • Ability to use the library catalog. • Ability to perform cash handling and use a cash register. • Ability to perform basic mathematical calculations. • Ability to work varied schedule including mornings, evenings and weekends • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include sitting for extended periods of time and operating assigned library equipment. • Ability to work varied schedule including early mornings, evenings, and weekends. Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions. • Ability to operate assigned equipment. • Ability to make sound decisions in a manner consistent with the essential job functions. WORKING CONDITIONS / PHYSICAL REQUIREMENTS: Work in a library environment with the public; maintains a professional appearance; sustained posture in a standing, walking or seated position for prolonged periods of time; perform bending, lifting, crouching and pushing items weighing up to 50 pounds; perform repetitive small hand and arm motions for prolonged periods of time; may travel to other library facilities; exposed to computer screens for prolonged periods of time. Library Page - H Under close supervision, shelves materials; performs routine clerical and support tasks as assigned. Distinguishing Characteristics: Library Page is a classification found in the Library Department and is distinguished by the performance of routine clerical duties under supervision. Work hours may vary and include nights and weekends. May include direct public contact. No previous knowledge of library operations required. ESSENTIAL DUTIES: Essential and other important responsibilities and duties may include, but are not limited to, the following: • Shifts collections; pulls or weeds items; performs sweeps. • Returns library materials to the shelves. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 44 Packet Pg. 48 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 42 of 47 • Performs RFID tagging • Performs shelf reading. • Assists in the setup of programs; performs program cleanup. • Processes LINK+ and locates items listed on hold for the library branch or on reserve for Link+ • Performs general cleaning and organization of the library’s areas. • Assist with open and close procedures. • May assist with special projects and programs. • Performs mail delivery. • May provide directional assistance to customers. • Works with Automated Materials Handling machine; moving and sorting bins, and sorting returned items. • Performs related duties and responsibilities as required. MINIMUM QUALIFICATIONS: Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills, and abilities which would typically be acquired through: • No experience necessary. KNOWLEDGE, SKILLS, AND ABILITIES: • Ability to work effectively with public and co-workers in variety of circumstances. Ability to work with wide variety of people. • Knowledge of alphabetical and numerical filing systems. • Knowledge of the library catalog. • Ability to work varied schedule including early mornings, evenings and weekends • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include sitting for extended periods of time and operating assigned library equipment. • Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions. • Ability to operate assigned equipment. • Ability to make sound decisions in a manner consistent with the essential job functions. WORKING CONDITIONS / PHYSICAL REQUIREMENTS: Work in a library environment with the public, maintains a professional appearance; sustained posture in a standing, walking or seated position for prolonged periods of time; perform bending, lifting, crouching and pushing items weighing up to 50 pounds; perform repetitive small hand and arm motions for prolonged periods of time; may travel to other library facilities; exposed to computer screens for prolonged periods of time. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 45 Packet Pg. 49 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 43 of 47 Maintenance Assistant - H Under general supervision, responsible for skilled and semiskilled tasks in one or more of the following areas: Landscape and turf maintenance of parks and golf courses, including tree maintenance and turf renovation City building and facilities City streets, sewers, and storm drains City vehicles and equipment Performs related tasks as required. Requires experience with power equipment and a valid California driver’s license. May require drug testing. Open Space Technician - H Under general supervision performs work assignments in Parks and Open Space areas that assist in the protection, preservation and maintenance of Palo Alto open space lands. Entry-level positions that require familiarity with power tools such as weed whips and chain saws. Print Shop Assistant - H Under supervision, provides assistance in the Print Shop in duplication, finishing work, mail distribution and other support function duties, often under tight deadlines. Project Specialist - H Support for and administrative tasks related to City programs and projects on an ongoing basis, requiring technical and administrative skills such as scheduling, research and report writing, project development and design, ongoing project implementation and administration, and budget tracking and conformance. Recreation Aide - H Provides general clerical and unskilled labor/support of recreational programs. Recreation Leader I - H Entry level positions that do not require previous experience including: Teen leaders Gymnastics Instructors Sports camp assistants Special event Assistants Summer camp counselors Coaches Recreation Leader II - H Positions require at least one season of experience and certifications in a related field including: Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 46 Packet Pg. 50 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 44 of 47 Sports Camp Leaders (CPR and First Aid) Sport Officials (CPR and First Aid) Assistant Pool Manager Senior Swim Instructor/Lifeguard Summer camp assistants Coaches Recreation Leader III - H Positions require at least 2 years of experience and specialized skills or advanced certifications in a related field including: Summer Camp Leaders Teen Outreach Leaders Coaches Substitute Teachers Sports Camp Leaders (CPR and First Aid) Sport Officials (CPR and First Aid) Pool Manager Gymnastic/Dance Instructors (Recreation Leader II requirements and Safety Certification and one of the following certifications: Professional Development Program II, Kinder Accreditation for Teachers or Movement Education and Learning Development.) Staff Specialist – H Under limited supervision, performs professional work requiring specialized knowledge or training in a specific field in support of a City program or organizational unit. The work performed is generally varied in character and similar to or equally complex to that of a career position, but is not managerial. Salary to be determined – an hourly rate above $50/hour must be approved by the Director of Human Resources before the City extends an offer of employment. Stock Clerk - H Under supervision, performs a variety of inventory maintenance functions including receiving, storing, and delivering supplies. Includes maintaining and reviewing computerized inventory records; performs other related work as required. Swim Instructor/Lifeguard - H Monitors pool activities to enforce regulations and prevent accidents, rescue swimmers in distress, conducts swimming lessons in accordance with American Red Cross or other national recognized aquatics programs and performs other related duties as required. Certificates in Lifeguard Training, First Aid and CPR required. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 47 Packet Pg. 51 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 45 of 47 Technical Specialist - H Under general supervision, responsible for work that requires technical skills associated with one or more of the following areas: drafting/CAD, electronics, computer systems, engineering, environmental science, or planning. Zoological Assistant - H Under supervision, performs assignments that assist in the maintenance, control, and shelter of animals in the zoo and other City facilities. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 48 Packet Pg. 52 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 46 of 47 Appendix B- Salary Schedule Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 49 Packet Pg. 53 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2017- June 30, 2021 July 1, 2023-June 30, 2025 Page 47 of 47 Appendix C Public Agency Retirement System (“P.A.R.S.”) Plan City of Palo Alto PST (Part-time, Seasonal and Temporary) Employees Retirement Plan As of the effective date of this contract, the City contracts with the Public Agency Retirement Services Alternate Retirement System (PARS ARS) to provide an alternative plan to Social Security for members of this Unit. The main components of the plan include: • Enrollment in the PARS 457 retirement plan is automatic for eligible employees (excludes employees previously enrolled in CalPERS). • All contributions are pre-tax and invested • Employees receive an annual statement of gains and losses • Employees may become eligible to receive their account balance when one of the following events occur: o Termination of employment o Retirement o Permanent or total disability o Death o Changed employment status to a position covered by another retirement system • An employee may elect either: o a one-time lump sum cash payment, which may be subject to federal and/or state income tax withholding, OR o A direct rollover without tax withholding to a traditional IRA or an eligible plan that accepts rollovers [e.g. 403(b), 457(b), 401(k)] A copy of the Plan Document is on file in Human Resources and may be reviewed upon advanced request. For questions or additional information, contact PARS at 800-540-6369. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 50 Packet Pg. 54 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 1 of 44 Memorandum of Agreement Service Employees International Unit (SEIU) Local 521 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 51 Packet Pg. 55 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 2 of 44 CONTENTS PREAMBLE ................................................................................................................................... 5 ARTICLE I – RECOGNITION ...................................................................................................... 5 Section 1...................................................................................................................................... 5 Section 2. No Discrimination. ..................................................................................................... 6 ARTICLE II - UNION SECURITY ............................................................................................... 6 Section 1. Notice. ....................................................................................................................... 6 Section 2. Documentation. .......................................................................................................... 6 Section 3. Payroll Deduction. ..................................................................................................... 7 Section 4. Bulletin Boards and Departmental Mail. ................................................................... 7 Section 5. Access to Union Representatives. ............................................................................. 7 Section 6. Meeting Places. ......................................................................................................... 8 Section 7. Notification to the Union. .......................................................................................... 8 Section 8. Union Logo. ............................................................................................................... 8 Section 9. City Council Materials. .............................................................................................. 8 Section 10. Temporary Agency Reporting ................................................................................. 8 Section 11. Job Postings. ............................................................................................................ 8 Section 12. Contracting Out. ....................................................................................................... 8 Section 13. New Employee Procedure/Process. ......................................................................... 9 ARTICLE III. – STEWARDS ........................................................................................................ 9 Section 1. Designation. .............................................................................................................. 9 Section 2. Release Time. .......................................................................................................... 10 Section 3. Advance Notification and Approval. ...................................................................... 10 Section 4. Timecard Reporting. ................................................................................................ 10 Section 5. Storage of Union materials. .................................................................................... 10 Section 6. Labor/Management Meetings. ................................................................................ 10 ARTICLE IV. - REDUCTION IN FORCE .................................................................................. 11 Section 1.................................................................................................................................... 11 Section 2. Notice ...................................................................................................................... 11 Section 3. Seniority and Service Ties. ...................................................................................... 11 Section 4. Bumping Rights. ...................................................................................................... 11 Section 5. Re-Employment List. ............................................................................................... 12 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 52 Packet Pg. 56 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 3 of 44 Section 6. Reinstatement. .......................................................................................................... 12 Section 7.................................................................................................................................... 13 ARTICLE V. - PERSONNEL ACTIONS .................................................................................... 13 Section 1. Probationary Period. ............................................................................................... 13 Section 2. Personnel Evaluations. ............................................................................................ 13 Section 3. Personnel Files. ....................................................................................................... 13 Section 4. Release of Information. ........................................................................................... 14 Section 5. Full Time Opportunities. ......................................................................................... 14 Section 6. Equitable Rotation. .................................................................................................. 14 Section 7. Internal Eligibility. .................................................................................................. 14 ARTICLE VI - PAY ..................................................................................................................... 14 Section 1. Wages. ..................................................................................................................... 14 Section 2. Step Increases.......................................................................................................... 15 Section 3. Working Out of Classification. ............................................................................... 16 Section 4. Direct Deposit. ......................................................................................................... 16 ARTICLE VII - HOURS OF WORK, OVERTIME .................................................................... 17 Section 1. Work Week and Work Day. .................................................................................... 17 Section 2. Overtime Work. ....................................................................................................... 17 Section 3. Work Shifts. ............................................................................................................. 17 Section 4. Lunch and Break Periods. ........................................................................................ 17 Section 5. Clean-Up Time. ........................................................................................................ 17 Section 6. Call-Out Pay............................................................................................................. 17 ARTICLE VIII – UNIFORMS ..................................................................................................... 17 ARTICLE IX- HOLIDAYS ......................................................................................................... 18 Section 1. Fixed Holidays: ....................................................................................................... 18 ARTICLE X- LEAVES ................................................................................................................ 19 Section 1. Sick Leave and Personal Business Leave ................................................................ 19 Section 2. Floating Holiday ...................................................................................................... 20 Section 3. Jury Duty .................................................................................................................. 20 ARTICLE XI - VOTING TIME ................................................................................................... 20 ARTICLE XII -WORKERS COMPENSATION ......................................................................... 20 Industrial Temporary Disability ................................................................................................ 20 ARTICLE XIII - BENEFIT PROGRAMS ................................................................................... 21 Section 1. Medical Insurance Plan. .......................................................................................... 21 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 53 Packet Pg. 57 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 4 of 44 ARTICLE XIV - RETIREMENT ................................................................................................. 21 Section 1. Part-time, Seasonal, Temporary (PST) Retirement Plan. ........................................ 21 Section 2. California Public Employees’ Retirement System (“PERS”). ................................ 22 Section 3. Retirement Contributions. ........................................................................................ 22 ARTICLE XV PARKING ........................................................................................................... 22 ARTICLE XVI PHYSICAL EXAMINATIONS ......................................................................... 23 ARTICLE XVII - SAFETY .......................................................................................................... 23 Section 1. Health and Safety Provisions. .................................................................................. 23 Section 2.................................................................................................................................... 23 Section 3. Safety Committee..................................................................................................... 23 ARTICLE XVIII - GRIEVANCE PROCEDURE ........................................................................ 24 Section 1.................................................................................................................................... 24 Section 2. Definition. ................................................................................................................ 24 Section 3. Conduct of Grievance Procedure. ........................................................................... 24 Section 4. Grievance Procedure. ............................................................................................... 26 ARTICLE XIX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION ....................................................................................................................................... 28 Section 1.................................................................................................................................... 28 Section 2.................................................................................................................................... 28 Section 3. Preliminary Notice of Discipline ............................................................................. 28 Section 4. Skelly Meeting. ....................................................................................................... 29 ARTICLE XX – NO ABROGATION OF RIGHTS .................................................................... 29 ARTICLE XXI – OUTSIDE EMPLOYMENT ............................................................................ 29 ARTICLE XXII PROMOTIONAL/CONVERSION OPPORTUNITES ..................................... 29 ARTICLE XXIII – PROVISIONS OF THE LAW ...................................................................... 29 Section 1.................................................................................................................................... 29 Section 2.................................................................................................................................... 30 ARTICLE XXIV – COST REDUCTION PROGRAMS ............................................................. 30 ARTICLE XXV – TERM ............................................................................................................. 30 EXECUTED: ................................................................................................................................ 31 Appendix A - Job Classifications for SEIU Hourly Unit Personnel ............................................. 32 Appendix B - Salary Schedule ...................................................................................................... 43 Appendix C - Public Agency Retirement System (P.A.R.S.) Plan ............................................... 44 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 54 Packet Pg. 58 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 5 of 44 MEMORANDUM OF AGREEMENT City of Palo Alto and Local 521, SEIU HOURLY UNIT PREAMBLE This Memorandum of Agreement is entered into by the City of Palo Alto (hereinafter referred to as the City) and Local 521 Service Employees International Union (hereinafter referred to as the Union). Employee, for the purposes of this Memorandum of Agreement, shall mean an employee assigned to a classification within the SEIU Hourly unit. This Memorandum of Agreement is pursuant and subject to Sections 3500 et, seq. 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. Pursuant to Sections 3500 et. seq. 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 hourly employees who are regularly scheduled and who work a minimum of four hundred sixteen (416) hours per fiscal year. This does include PERS exempt employees. This does not include on call employees without regular schedules and who are hired to work occasionally for special projects. This does not include employees employed primarily to work seasonal or recreational programs and who may work intermittently outside their recreational season. This unit shall for purposes of identification be titled the SEIU Hourly Unit, and includes employees in the classifications listed in Appendix A attached. The City shall notify the Union in writing of the development of a new hourly classification and upon request will meet and confer regarding inclusion of the classification in the SEIU Hourly Unit. The parties agree that hourly employees are considered to be in the bargaining unit while that employee is employed by the City of Palo Alto, when they work (including all paid hours) 416 hours or more within a fiscal year. Any Limited Hourly employee that accumulates 416 hours worked or more within a fiscal year, shall be converted to the SEIU 521 Hourly Unit by the City of Palo Alto. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 55 Packet Pg. 59 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 6 of 44 Upon conversion of an eligible hourly employee from the Limited Hourly status to the SEIU 521 Hourly Unit status, all wages and benefits due the employee will be paid and provided to the employee. All current and retroactive wages and/or benefits shall be back dated to their eligibility date of their status and recognition, as a SEIU 521 Hourly Unit employee. Section 2. No Discrimination. The City and Union agree that no person employed by or applying for employment hereto shall be discriminated against because of race, religion, creed, political affiliation, color, national origin, ancestry, union activity, age, disability, sexual orientation, or gender. 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 II - UNION SECURITY Section 1. Notice. When a person is hired in a job covered in Article I, the City shall notify that person that the Union is the recognized bargaining representative for the employee and give the employee a current copy of the Memorandum of Agreement. When a group employee orientation is held for new employees of the bargaining unit, a Union Representative may make a presentation to such bargaining unit employees for the purpose of explaining matters of representation. New employees shall be required to attend orientation. The Director of Human Resources may make an exception if extraordinary circumstances interfere with the employee’s ability to attend. If the Director grants an exception, the employee and Union shall be granted a thirty (30) minute presentation at the employee’s report location for union orientation. Section 2. Documentation. The City shall supply the Union with the information described under subsections (a) and (b) of this Section: (a) The City will provide SEIU, when available, with the name, job title, department, work location, work, home, personal cellular telephone number, personal email address, and home address of any new employee within 30 days of hire or by the first pay period of the month following hire. (b) The City will provide SEIU with the list, enumerated above, of all information for all employees in the bargaining unit at least every 120 days unless more frequent. (c) The City shall supply the Union with the documentation required by California Assembly Bill 119. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 56 Packet Pg. 60 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 7 of 44 (d) The Union shall supply the City, and as applicable, the employees, with the documentation required by Government Code Section 3502.5(f). Section 3. Payroll Deduction. (a) The City shall deduct Union membership dues, and any other mutually agreed upon payroll deduction, which may include voluntary COPE (Committee On Political Education) at the check-off area, from the bi-weekly pay of bargaining unit employees. 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. (b) 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 4. Bulletin Boards and Departmental Mail. The Union shall have access to inter-office mail, existing bulletin boards in unit employee work areas, and the existing Union-paid telephone answering device for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission. The Union may send email messages only for the purposes set forth above. The IT Department will maintain the SEIU list and keep it current. The Union access to email is based on the following conditions: 1) emails to the SEIU list will be copied to the Human Resource Director 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 per year by the SEIU Chapter Secretary. Section 5. 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, Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 57 Packet Pg. 61 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 8 of 44 provided that no disruption of work is involved and the business transacted is other than recruiting of members or collecting of dues, and the Representative must notify the Human Resources Department Office prior to entering the work location. Section 6. 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 7. Notification to the Union. 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. Section 8. 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 9. City Council Materials. 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 may be picked up at the City Clerk's Office during business hours. Section 10. Temporary Agency Reporting. 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 11. Job Postings. Job postings for classification positions covered by this Agreement shall include a statement that the position is covered by this Collective Bargaining Agreement and that union dues may be required. Section 12. Contracting Out. The City through the labor management process will keep the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SEIU bargaining unit work traditionally performed by bargaining unit members at least thirty (30) days prior to the release of the City Manager’s proposed budget. The City will notify the Union in writing at least ninety (90) days prior to contracting work which has been traditionally performed by bargaining unit members, where such contracting will result in layoff or permanent reduction in hours. Within the ninety (90) day period of contracting out, both parties may offer alternatives to contracting out and meet and confer on the impact of such contracting out of a bargaining unit employee work. The City will collaborate with the Union regarding the potential result of a layoff of bargaining unit members. The City will provide all available job opportunities within the City of Palo Alto Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 58 Packet Pg. 62 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 9 of 44 and/or the contracting out agency or entity to the Union. The Union will communicate with impacted bargaining unit members with regards to any interest a member may have in securing another job position, in lieu of a layoff, whenever possible. 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. Section 13. New Employee Procedure/Process. New employees hired and assigned to classifications covered by the SEIU Unit shall be advised by the City that Local 521, Service Employees International Union, is the recognized bargaining representative in said unit. The City agrees to distribute to all new employees in the SEIU Unit a reasonable amount of materials provided by the Union at its expense. The City will provide to the Union written notice in accordance with California Assembly Bill 119, a list of employees attending the City’s new employee orientation that includes each employee’s identification number, name, job classification, department, work location (title and address), work phone number (if available in the payroll system), work email address (if available in the payroll system), hire date, and, subject to the individual employee’s consent, the employee’s home address, personal mobile number, home phone number, and personal home email address. A representative(s) of the Union shall be permitted to make a thirty (30) minute presentation and present written materials during a portion of the orientation for which attendance is mandatory. No representative(s) of management shall be present. One steward or chapter officer shall be granted release time for this purpose. ARTICLE III. – STEWARDS Section 1. Designation. The Union agrees to notify the Director of Human Resources of those individuals designated as Union officers and Stewards who receive and investigate grievances Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 59 Packet Pg. 63 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 10 of 44 and represent employees before Management. Alternates may be designated to perform Steward functions during the absences or unavailability of the Steward. Section 2. Release Time. It is agreed that, as long as there is prior notice to the Supervisor with no disruption of work, one (1) Steward shall be allowed reasonable release time away from their work duties, without loss of pay, to act in representing 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 timecards using Internal Order 80005 or its successor and a short-text notation describing the nature of the release time (e.g. “Steward release time”, “bargaining release time”, “Labor-Management Committee release time”, etc.). Section 3. Advance Notification and Approval. The Union agrees that the Steward shall give advance notification to his/her supervisor and receive permission before leaving the work location, except in those cases involving emergencies where advance notice cannot be given. Management permission to leave the worksite under this section shall not be unreasonably denied. Section 4. Timecard Reporting. One Union Steward per affected Department, who is a City employee, 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 using Internal Order 80005 or its successor and a short-text notation describing the nature of the release time (e.g. “Steward release time”, “bargaining release time”, “Labor-Management Committee release time”, etc.). Section 5. Storage of Union materials. 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 6. Labor/Management Meetings. Two Hourly Unit employees from different divisions shall be allowed a reasonable amount of release time off to participate in monthly Labor/ Management Meetings. Such meetings may be included with the Classified Unit’s Labor/Management meetings if appropriate. Such time shall be reported using Internal Order Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 60 Packet Pg. 64 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 11 of 44 80005 or its successor and a short-text notation describing the nature of the release time (e.g. “Labor-Management Committee release time”, etc.). ARTICLE IV. - REDUCTION IN FORCE For the purposes of this Section, length of service shall be defined as all straight time hours worked by that employee for the City of Palo Alto. Section 1. In the event of reductions in force, reductions shall be accomplished whenever possible through attrition. Section 2. 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. Seniority and Service Ties. 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 an hourly classification with no adjustment for leaves of absence. Length of service ties will be determined by lot. Employees laid off due to the above reasons will be given written notice at least thirty (30) 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 hourly 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 at termination within 72 hours of the date of termination. This does not include any amounts payable as PERS contribution refunds, if any. Section 4. Bumping Rights. Employees identified for layoff who have seniority (bumping) rights to their current or previously held classification within the representation unit must declare their intention to exercise these rights within seven (7) regularly scheduled 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 successfully bump, the employee must be qualified, and capable of Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 61 Packet Pg. 65 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 12 of 44 performing all work in the position bumped. An employee who declares bumping rights may not also claim priority re-employment rights. For purposes of this section of the Agreement, the term "working days" shall mean Mondays through Fridays, exclusive of holidays. When employees declare their intention to exercise their seniority (bumping) rights, the City will provide the Union with a current list of the least senior incumbents to their current or previously held classification, within five (5) working days from the date employees exercise their seniority (bumping) rights, with the mutual goal to offset a potential lay-off of the impacted employee(s). Employees who are in jeopardy of being laid off and have waived their right to bump or when there are no positions that exist within the current or previously held classification for the employees to exercise their right to bump, employees will have priority hiring rights for any vacant budgeted positions within the City. For the purposes of this section, priority hiring is defined as sole consideration by the hiring manager for any position where the employee meets the minimum qualification or through a combination of knowledge and experience can be reasonably assumed to meet the minimum qualifications. No other internal or external candidates will be considered until a final determination has been made by the hiring manager in regard to the priority hire. If more than one (1) employee in jeopardy of being laid off exercises their priority hiring status, then all employees with priority hiring status will be considered simultaneously. This section shall not constitute any guarantees to appointment of positions or expansion of bumping rights. When employees exercise their priority hiring status rights, the City will provide the Union with a current list of all vacant budgeted positions at the City within five (5) working days from the date the employees exercise their priority hire status, with the mutual goal to offset a potential lay-off of the impacted employee(s). When an employee secures a position with the City through the priority hire process, all reasonable measures will be taken to ensure and support a successful transition into their new position. Section 5. Re-Employment List. The names of persons 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 person with the highest seniority on a division re- employment list for a particular classification when a vacancy exists in that classification in that division shall be offered the appointment. Names shall be carried on a re-employment list for a period of one (1) year from the date of separation from City services or change of classification through bumping. Upon re-employment within the one-year period, the employee's hire date of record at the time of layoff will be reinstated. Section 6. Reinstatement. Employees laid off pursuant to Section 2 who are reinstated to regular position within sixty days shall retain the sick leave balance they had at the time of layoff. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 62 Packet Pg. 66 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 13 of 44 Section 7. No representation unit employee will be laid off or remain on a re-employment list when intermittent hourly and seasonal hourly employees are performing substantially all the duties of the classification of the hourly employee receiving a layoff notice or on a re-employment list. ARTICLE V. - PERSONNEL ACTIONS Section 1. Probationary Period. Each new employee shall serve a probationary period of six (6) months of continuous employment calculated from the employee’s date of hire in a covered classification and excluding all periods of leave and light duty assignments. 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 each probationary employee on or before expiration of the probationary period. Normally, this appraisal will be given at the end of six months. 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 as scheduled by Management. Personnel evaluations are not appealable subject to appeal 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 review shall be made in writing within ten (10) working days following the review meeting. Section 3. Personnel Files. Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Union Representatives. An employee or the Union shall be allowed, upon reasonable request, copies of materials in an employee's personnel file relating to a grievance. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 63 Packet Pg. 67 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 14 of 44 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 in writing. Section 5. Full Time Opportunities. Full time job opportunities for classifications within the Hourly unit and the Classified unit will be posted for at least ten (10) working days (Monday through Friday) prior to selection. Outside recruitment may be used for full time openings and may begin at the time of posting, or any time thereafter. Section 6. Equitable Rotation. In assigning employees to regular schedules or special assignments, transfer, standby, overtime, or time off selection, ability to perform the work, length of service and/or equitable rotation shall determine the assignments. Section 7. Internal Eligibility. Non-probationary employees in the Hourly Unit are eligible to apply for any posted SEIU Classified Unit promotional employment opportunity. Such participation shall be on the same basis and on the same terms as applies to internal Classified Unit applicants, except as provided otherwise by the terms of the applicable City-SEIU Classified Unit MOA or other applicable agreement between the City and the SEIU Classified Unit. Unless otherwise provided by the City-SEIU Classified Unit MOA or other applicable agreement between the City and the SEIU Classified Unit, the seniority of an Hourly Unit applicant shall be determined by total hours worked divided by two thousand eighty (2080). The parties acknowledge that this paragraph will have effect only upon written agreement between the City and SEIU Classified Unit to permit its application and for the duration of such agreement. ARTICLE VI - PAY Section 1. Wages. Base wage rates and ranges of covered classifications are set forth in Appendix B (Salary Schedule) of this Memorandum of Agreement and reflect the following increases: Effective the first full pay period following ratification by the City Council, the salary ranges of all represented classifications will be increased by four percent (4.0%). Effective the first full pay period including July 1, 2024, the salary ranges of all represented classifications will be increased by four percent (4.0%). Targeted Adjustments: For external and internal wage alignment, the salary rates for the pay step level job classifications, Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 64 Packet Pg. 68 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 15 of 44 shall be increased the first full pay period following adoption by the City Council, as described below: • 2.5% Wage Increase: o Arts and Science Professional (Aide, Technician, I – III) - H o Custodial Aide - H o Custodial Assistant – H o House Manager – H o Instructor (Aide, I – III) - H o Maintenance Assistant - H o Recreation Leader (I – III, Eliminate Aide as a classification) - H o Stock Clerk – H o Zoological Assistant – H • 5% Wage Increase: o Assistant Park Ranger - H o Library Clerk - H o Library Page - H o Open Space Technician – H • All of the remaining nine (9) SEIU-H Pay Step Level job classifications not listed above, will receive a 1% wage increase, as described below: o Administrative Specialist I - H o Administrative Specialist II - H o Building Service Person - H o Clerical Assistant – H o Librarian - H o Print Shop Assistant – H o Project Construction Inspector -H o Project Specialist – H o Technical Specialist – H The four (4) Minimum to Maximum Pay Range job classifications, will receive a 2.5% wage increase adjustment to the Minimum Pay Range only, the first full pay period following adoption by the City Council, as described below: o General Laborer -H o Inspector – H o Journey Level Laborer – H o Staff Specialist – H Section 2. Step Increases. Hourly employees are to be given a performance review after six months from date of hire and annually thereafter; improvement, efficient and effective service will warrant a salary step increase. Subsequent salary reviews are based on performance Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 65 Packet Pg. 69 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 16 of 44 appraisals and will depend upon demonstrated satisfactory job performance. If an employee’s performance evaluation is delayed past the employee’s review date and the reviewing manager determines that the employee’s demonstrated job performance warrants the step increase, the increase shall take effect retroactive to the employee’s originally scheduled review date. (a) City Departments may elect to provide step level increases to a SEIU Hourly employee at any time during their employment with the City. The department may elect a merit step level increase based on an employee’s outstanding job performance at any time. (b) Employees promoted within the SEIU Hourly classifications shall be placed at the closest wage step to their current hourly rate; this can never result in a loss in pay to the employee. Section 3. Working Out of Classification. The term ‘working out of classification”, also referred to as WOC, is defined as a Management authorized assignment to a budgeted Hourly Unit position or a General Unit position on a temporary basis, wherein all significant duties are performed by an individual holding a classification within a lower compensation range. The WOC position serves as a temporary measure to cover a vacancy in the Hourly Unit or the General Unit for a reasonable short-term timeframe. For any timeline extensions of the WOC position, the City and the Union will communicate via phone or e-mail and/or meet to discuss the status of the WOC extension. The Union agrees that it shall not unreasonably withhold agreement for a reasonable extension of a reasonable duration for any SEIU/City WOC position. The City agrees that it shall provide an ongoing recruitment effort pertaining to the vacant WOC position in a timely and reasonable manner. Pay for working out of classification shall be as follows: Employees appointed on a “working out of classification” basis will receive acting pay within the range of the higher classification beginning the first (1st) workday of the assignment. Pay for working out of classification will be determined by the salary step of the higher classification which the employee would be compensated, if permanently appointed to that classification. Employees in the working out of classification position, shall be placed at the closest higher pay step level to their current hourly rate. Section 4. Direct Deposit. Beginning in the first pay period following union ratification and adoption of this Agreement by the City Council, 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 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 66 Packet Pg. 70 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 17 of 44 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 VII - HOURS OF WORK, OVERTIME Section 1. Work Week and Work Day. The workweek for hourly employees shall be no greater than forty (40) regularly scheduled hours. An employee will work the hours assigned by the employee’s supervisor. Overtime work must be approved by a supervisor prior to being performed. Section 2. Overtime Work. An employee will receive overtime at the rate of time and one-half for all hours paid after 40 hours in a workweek. Section 3. Work Shifts. Employees may be assigned to work shifts with scheduled starting and quitting times. For employees assigned to a regular work shift, should conditions necessitate a change in starting and quitting times, the Employee will be notified ten (10) working days in advance and permitted to discuss such changes with the City. The Employee may request the presence of his/her Union Representative at the meeting with the City. This however, shall not preclude the City’s right to effect schedule changes dictated by operational necessity, nor shall this provision apply to day-to-day changes needed to cover short-term unexpected absences. This section does not apply to overtime scheduling. Section 4. Lunch and Break Periods. Employees will be granted a minimum half hour (1/2 hour) unpaid meal break after five (5) hours of work, unless the entire shift is only six (6) hours, in which case the employer and employee may agree to forgo the meal break. If dictated by the operational needs of a department, and upon agreement by the City and the Union, employees may take an “on duty” lunch period which shall be counted as time worked. All employees in the bargaining unit will be granted a paid rest period limited to fifteen (15) minutes during each full four (4) hours of work. Departments may make reasonable rules concerning rest period scheduling. Section 5. 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 6. Call-Out Pay. Employees not otherwise excluded from receiving overtime pay and 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. ARTICLE VIII – UNIFORMS The City will provide uniforms, coveralls or shop coats on a weekly basis, or as otherwise furnished, for the jobs and/or classifications that the City requires such apparel. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 67 Packet Pg. 71 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 18 of 44 Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. 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. The City shall reimburse employees 75 percent of the cost of job-required safety shoes upon verification of such purchase by the employee. The City will provide rainy weather protection when and where appropriate. The City and the Union will work through the Labor Management process to further develop guidelines for providing uniforms and reimbursements. ARTICLE IX- HOLIDAYS Section 1. Fixed Holidays: January 1 Third Monday in January (Martin Luther King Day) Third Monday in February Last Monday in May July 4 First Monday in September Second Monday in October Veterans' Day, November 11 Thanksgiving Day Day after Thanksgiving December 25 Either December 24 or December 31 a) Employees who work a regular schedule shall receive holiday pay for the hours they would otherwise be scheduled to work, due to a closure on a Fixed City Holiday. b) Employees who work on a holiday that is an employee’s regular scheduled workday, will receive time and one half for all hours worked on a holiday in addition to any regular holiday pay, for all hours worked on a holiday. c) Employees who work on a holiday that is an employee’s non-regular scheduled workday, will receive time and one half for all hours worked on a holiday. Employees will not receive regular holiday pay. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 68 Packet Pg. 72 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 19 of 44 d) SEIU 521 Hourly Unit employee workdays are defined as Monday-Sunday. e) When a City Fixed Holiday falls on a weekend day, the City recognizes the Holiday on the weekday before or the weekday after the City Fixed Holiday. f) The following five (5) City Fixed Holidays may fall on weekend days: January 1, July 4, Veterans’ Day-November 11, December 25 and Either December 24 or December 31. g) Due to a closure on a City Fixed Holiday that falls on a weekend day, employees who are regularly scheduled to work weekend days and do not work on the weekday before or after the City Fixed Holiday, shall receive holiday pay for the hours they would otherwise be scheduled to work. h) Employees who work on a holiday that is an employee’s regular scheduled weekend workday that falls on a City Fixed Holiday and do not work on the weekday before or after the City Fixed Holiday, will receive time and one half for all hours worked on a holiday in addition to any regular holiday pay for all hours worked on the holiday. i) Employees who work on a holiday that is an employee’s non-regular scheduled weekend workday that falls on a City Fixed Holiday and do not work on the weekday before or after the City Fixed Holiday, will receive time and one half for all hours worked on a holiday. Employees will not receive regular holiday pay. ARTICLE X- LEAVES Section 1. Sick Leave and Personal Business Leave a. Sick Leave The City shall provide each employee with paid sick leave, earned on the basis of 0.03 hours for each hour paid. Sick leave shall be allowed and used in cases of actual personal sickness or for the care of an immediate family member, including a registered domestic partner, or disability, medical or dental treatment. A maximum of 15 hours per year of sick leave may be used to care for family members, including a registered domestic partner. There will be no pay out of sick leave upon the employee’s termination. If an Hourly Unit member is hired into a permanent position in the General Employee bargaining unit, he or she will retain his or her accumulated sick leave balance. b. Personal Business Leave Effective January 1, 2015, up to ten (10) hours per year of sick leave may be used as authorized for Personal Business Leave. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 69 Packet Pg. 73 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 20 of 44 Section 2. Floating Holiday Effective January 1, 2024, the SEIU Hourly Unit employees shall be excused with pay for the hours they would otherwise be scheduled to work, for one (1) day within each calendar year, which is mutually agreed to by the employee and their supervisor. The one (1) floating holiday will be deemed forfeited and have no cash value, if not used each calendar year. Section 3. Jury Duty Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties for hours that they are regularly scheduled to work consistent with the requirements of the City's Merit System Rules and Regulations. ARTICLE XI - VOTING TIME When the employee is unable to vote outside the employee’s work hours, time off with pay to vote in any general or direct primary election shall be granted as provided in the State of California Election Code, and notice than an employee desires such time off shall be given in accordance with the provisions of said Code. ARTICLE XII -WORKERS COMPENSATION 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 based upon hourly salary for a period 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 hourly salary at the time of injury for the duration of such temporary disability in conformance with the State law. (c) In case of Subsection (a) above, the employee will continue to accrue sick leave benefits. In the case of Subsection (b), sick leave benefits shall not be accrued. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 70 Packet Pg. 74 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 21 of 44 ARTICLE XIII - BENEFIT PROGRAMS Section 1. Medical Insurance Plan. In lieu of providing a medical plan the City provides a medical stipend. This stipend does not apply and will not be payable to employees who are California Public Employee Retirement System annuitants already receiving medical benefits through that system. For the term of this agreement the medical stipend is set at the following amounts: Effective the first full pay period following ratification by City Council, the medical stipend shall be increased by four and one half percent (4.5%) for a total of $3.64 per hour in paid status. Effective the first full pay period including July 1, 2024, the medical stipend shall be increased by four and one half percent (4.5%) for a total of $3.80 per hour in paid status. If the State of California or federal government adopt or mandate a plan that requires the City to pay in whole or in part for medical services or coverage for employees in the bargaining unit, the stipend provided in this paragraph shall be reduced or cease to the extent of required payments toward the state or federal plan, as applicable. Before implementation of a change, the City shall notify the Union of the amount of the offset and provide an opportunity to meet to discuss the calculation of the amount. Such discussion shall occur within fifteen (15) working days after the City gives notice to the Union. The City’s calculation of the amount of the offset shall be based on the aggregate number of hours worked in the bargaining unit during the fiscal year preceding that in which the state or federal plan takes effect. The City and SEIU will continue to investigate the feasibility of providing Employees with access to medical insurance. Such information will be shared during negotiations for a successor Memorandum of Agreement. ARTICLE XIV - RETIREMENT Section 1. Part-time, Seasonal, Temporary (PST) Retirement Plan. Employees in the Hourly Unit shall participate in the City of Palo Alto PST Retirement Plan, except as described in section 2 below. The plan, summarized in Appendix C, was adopted by the City on June 25, 1994 as a retirement plan alternative for part-time, seasonal and temporary employees to replace Social Security and is currently administered by Public Agency Retirement Services (“PARS”). The City of Palo Alto does not deduct the social security portion of the FICA (Federal Insurance Contribution Act) tax. The City does deduct the Medicare portion of the FICA tax. All hourly employees are required to contribute 7.5% of their salary into the PST Retirement Plan. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 71 Packet Pg. 75 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 22 of 44 Section 2. California Public Employees’ Retirement System (“PERS”). PERS annuitants are excluded from participation in the P.S.T. Retirement Plan. Employees in the Hourly Unit who have previously participated in and remain members in the California Public Employee Retirement System (“PERS”) or are otherwise required by law to be enrolled in CalPERS shall participate in P.E.R.S. to the extent required by law, in lieu of participation in the P.S.T. Retirement Plan. For example, CalPERS currently requires enrollment of most employees who work over 1000 hours in a fiscal year. Enrollment in CalPERS will be completed consistent with CalPERS rules and regulations. Participation in CalPERS shall be under the retirement formula and cost share in effect at the time the employee is hired into the Hourly Bargaining Unit unless otherwise required by law. If any changes to the CalPERS cost share are negotiated by the City of Palo Alto and SEIU 521 Regular Unit, then those changes will apply to any SEIU hourlies enrolled in the CalPERS system. The City and the SEIU 521 union will notify all SEIU hourlies enrolled in the CalPERS system via written notification within 2 pay periods, when there are any changes to the CalPERS cost share. Section 3. Retirement Contributions. a. PST Retirement Plan Contributions. Employees enrolled in the PST Retirement Plan shall contribute seven and one half percent (7.5%) of wages toward that Plan. b. PERS Employee Contributions. Employees enrolled in the PERS retirement system shall pay the full amount of the applicable employee contribution required by CalPERS for the PERS formula in which the employee is enrolled, as may be changed by CalPERS from time to time. c. Current contributions are as follows: (1) 2.7% at 55 Formula: eight percent (8%) (2) 2% at 60 Formula: seven percent (7%) (3) 2% at 62 Formula: contribution required by the Public Employees’ Pension Reform Act, calculated at fifty percent (50%) of the normal cost. (4) 1% Cost share of employer contribution for all plans ARTICLE XV PARKING Employees are covered by the City’s administrative policy for Hourly parking permits, which includes the following provisions: Permits will be issued for University Avenue Parking Structures only. To be eligible for a parking permit, an hourly employee must work at least 2.5 hours per day for a consistent period of time (this assumes the need to walk back and forth to a garage). If the employee works less than 2.5 hours, they can park, without penalty, in downtown garages given the current 3 hour parking limit. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 72 Packet Pg. 76 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 23 of 44 The hourly employee must obtain a signed letter from his or her Department Head verifying the employee’s “consistent” and greater than 2.5 hour schedule for a parking permit and submit the letter with the request for a parking permit. The parking permit is issued and tracked by Revenue Collections, and is not transferrable. The employee must return the parking permit to Revenue and Collections upon a change to less than a 2.5 hour consistent schedule or termination of employment. ARTICLE XVI PHYSICAL EXAMINATIONS If an 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 at his/her own expense 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 the third 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 XVII - 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 will cooperate with the City by encouraging all employees to perform their work in a safe manner. Section 3. Safety Committee. A Safety committee composed of Management and Union Stewards will meet no less than ten 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. Three (3) Hourly employees will participate in the ten-member Citywide Union/Management safety committee with equal Union and Management membership that will meet, upon call, to review safety and occupational health standards and practices, discuss overall City safety and Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 73 Packet Pg. 77 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 24 of 44 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. The three (3) Hourly participants shall report such time on timecards, using Internal Order 80005 or its successor in conjunction with a short-text entry describing the nature of the time spent (e.g. “City-wide Union-Management Safety Committee”). 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 used. Safety grievances shall be submitted at Step III. ARTICLE XVIII - GRIEVANCE PROCEDURE Section 1. 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. Definition. A grievance is: (a) 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) An appeal from a disciplinary action of any kind against an employee covered by this Memorandum of Agreement. Disciplinary action 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. (a) An aggrieved employee may be represented by the Union or may represent himself/herself in preparing and presenting a grievance at any level of review. Grievances Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 74 Packet Pg. 78 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 25 of 44 may also be presented by a group of employees. No grievance 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 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. Requests for release time to prepare a grievance shall be made in accordance with the provisions of Article III, section 3. Beginning with the third step of the grievance procedure, the Chief Steward or Alternate Chief Steward may assist in presenting a grievance and may be present at all Step III, and IV grievance hearings. (c) 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. (d) Should a decision not be rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. (e) The grievance may be considered settled if the decision of any step is not appealed within the specified time limit. (f) If appropriate, the aggrieved employee(s) or the Union and the Department Head may mutually agree to waive Step I and/or Step II of the grievance procedure. (g) Grievances shall be made in writing and submitted on forms provided by the City or on forms which are mutually agreeable to the City and Union. The written grievance shall contain clear, factual and concise language including: (1) the name of the grievant, (2) a statement of the facts upon which the grievance is based, including relevant dates, times and places, (3) specific provisions of the Agreement or specific City rules, policies, or procedures which the party filing the grievance alleges has been violated; (4) a summary of any steps taken toward resolution, and (5) the action the grievant believes will resolve the grievance. (h) 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. (i) 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 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 75 Packet Pg. 79 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 26 of 44 subject of dispute. Union grievances shall comply with all of the foregoing provisions and procedures. (j) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays. (k) If a mutually agreed solution is reached during any step of this grievance procedure, the agreement shall be placed in writing and signed by the City and the grievant or union. (l) Upon request of either party, meetings to discuss the grievance shall be held at any step in the grievance procedure. Section 4. Grievance Procedure. Step I. Informal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance 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, the employee will reduce the grievance to writing and submit copies to the Department head or his or her designee within fifteen working days of the discussion with the immediate supervisor. The Department Head or designee shall have fifteen working days from the receipt of a written grievance to review the matter and prepare a written statement. Step III. If the grievance is not resolved 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 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, the Department Head’s decision at Step II, and a clear statement of the reasons for appeal. Within fifteen 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 a grievance as defined under 2(a) above is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding 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 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 76 Packet Pg. 80 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 27 of 44 Office within fifteen 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 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, grant wage increases or decreases, or to decide matters of interest. 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. A grievance as defined under Section 2(b) above (demotion, suspension, reduction in pay or termination) that remains unresolved after the conclusion of step III of the grievance procedure, shall be reviewed by a City Hearing Officer. Appeals to a City Hearing Officer must be filed with the Human Resources Director in writing within fifteen (15) working days of the receipt of the Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 77 Packet Pg. 81 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 28 of 44 Step III Grievance response. Within sixty (60) working days, the City Hearing Officer shall review the matter, hold a hearing with the City and the affected worker, and prepare a written recommendation to the City Manager. The City Manager shall issue a final and binding decision within fifteen (15) working days after receipt of the City Hearing Officer's recommendation. The City Manager may accept, reject or modify the City Hearing Officer’s recommendation. The City Manager's decision shall be final, binding and not be subject to further appeal. ARTICLE XIX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION Section 1. Right to Discipline The City has the right to discipline, demote, or discharge employees for cause. Section 2. Written Notice 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. 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 3. Preliminary Notice of Discipline. Prior to imposing disciplinary action involving a disciplinary suspension, demotion, reduction in pay, or discharge of a non-probationary employee, 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. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 78 Packet Pg. 82 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 29 of 44 (f) Statement advising the employee of his/her right to appeal from such action, and the right to Union representation. (g) The date and/or the procedure for responding to the notice. Section 4. Skelly Meeting. The employee who receives a notice pursuant to section 3 above 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) 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) 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 to the employee’s last known address on file with the Human Resources Department. 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. ARTICLE XX – 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 Memorandum of Agreement. ARTICLE XXI – OUTSIDE EMPLOYMENT The provisions of Article 4.7 of the Government Code of the State of California will govern the determination of incompatible outside employment. ARTICLE XXII PROMOTIONAL/CONVERSION OPPORTUNITES The City and Union will meet on a quarterly basis to review the possibility of converting long term ongoing temporary-hourly positions to regular status. A part of such a meeting may be a discussion regarding promotional opportunities of Hourlies to Classified positions. ARTICLE XXIII – PROVISIONS OF THE LAW Section 1. 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 Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 79 Packet Pg. 83 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 30 of 44 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. 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 XXIV – 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 XXV – TERM This Memorandum of Agreement shall take effect on ratification and signing by the parties, and shall expire on June 30, 2025. Either party may serve written notice upon the other party during the period between ninety and sixty days prior to its expiration date, of its desire to amend this Memorandum of Agreement. If, at the time this Memorandum of Agreement would otherwise terminate, the parties are negotiating a new Memorandum of Agreement, upon mutual agreement of the Union and the City Manager the terms and conditions of this Memorandum shall continue in effect. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 80 Packet Pg. 84 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 31 of 44 EXECUTED: FOR LOCAL 521, SEIU: FOR CITY OF PALO ALTO: Angel Jose Picon Ed Shikada SEIU Worksite Organizer City Manager Bunny Bornstein Sandra Blanch Chief Steward Human Resources Director Marlon Kasberg Tori Anthony Bargaining Team Member Manager Employee Relations Sandhya Uthup Human Resources Representative Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 81 Packet Pg. 85 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 32 of 44 Appendix A Job Classifications for SEIU Hourly Unit Personnel Administrative Specialist I - H Performs administrative work that requires advanced skills or knowledge in support of a department/division or program. Administrative Specialist II – H Performs more complex administrative work that requires advance skills or knowledge in specialized software programs and data analysis in specialized areas in support of a department/division or program. Two years of experience equivalent to that of an Administrative Specialist I. Arts & Science Aide - H Under general supervision, performs general unskilled and some semiskilled tasks in support of theater, arts and museum programs. Arts & Science Professional I - H Under general supervision, performs highly skilled jobs in support of performing and visual arts. Examples would include exhibit design and installation, graphic design, exhibit mechanical and electrical design, exhibit problem solving, installation and maintenance, materials and parts sourcing for exhibits, managing outsourced custom fabrication of specialty parts, and working with Arts & Sciences Producers on design of exhibits, theater scenery, costume & lighting design and direction, studio supervision, development of educational programs, etc. Arts & Science Professional II - H Under limited supervision, performs highly specialized jobs in support of performing and visual arts. Examples would include exhibit design and installation, graphic design, exhibit mechanical and electrical design, exhibit problem solving, installation and maintenance, materials and parts sourcing for exhibits, managing outsourced custom fabrication of specialty parts, and working with Arts & Sciences Producers on design of exhibits, theater scenery, costume & lighting design and direction, studio supervision, development of educational programs, etc. Two years of experience equivalent to that of an Arts & Science Professional I. Arts & Science Professional III - H Independently performs highly specialized jobs in support of performing and visual arts. Examples would include exhibit design and installation, graphic design, exhibit mechanical and electrical design, exhibit problem solving, installation and maintenance, materials and parts sourcing for exhibits, managing outsourced custom fabrication of specialty parts, and working with Arts & Sciences Producers on design of exhibits, theater scenery, costume & lighting design and direction, studio supervision, development of educational programs, etc. Five years of experience equivalent to that of an Arts & Science Professional I. May require lifting up to 15 pounds Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 82 Packet Pg. 86 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 33 of 44 Arts & Science Technician - H Under supervision, performs paraprofessional and skilled support to a specific performing or visual arts program area such as lighting, props, building, painting, stitching – etc. Assistant Park Ranger - H Positions requiring at least 2 years of experience and specialized skills or advanced certificates for First Aid, CPR, and heavy equipment operation. Prior experience as an open space technician or park aide is essential. Building Serviceperson – H Under limited supervision, performs custodial duties and other related work as required to maintain City buildings and facilities in a clean and orderly condition. Members of this classification may be assigned to perform either public works duties or park duties. Two years of experience equivalent to that of a Custodial Assistant. Clerical Assistant - H Under supervision, performs routine and repetitive computer inputting and clerical tasks, and performs related work as required. May require cash handling. Custodial Aide - H Under close supervision, this entry-level position performs basic custodial duties as required to maintain City buildings and facilities, performs room set-ups and take-downs, and other related work. Custodial Assistant - H Under general supervision, performs custodial duties and other related work as required to maintain City buildings and facilities in a clean and orderly condition. Members of this classification may be assigned to perform either public works duties or parks duties. General Laborer – H Performs general manual tasks. Performs various types of manual labor as needed. Possesses knowledge of commonly-used concepts, practices, and procedures within a particular field. Performs tasks in conformance within pre-established instructions. Works under general supervision. Uses very limited independent judgment similar to that expected of an apprentice- helper level laborer, consistent with pre-established instructions. May report to a lead worker, but typically reports to a supervisor. Requires a high school diploma or its equivalent with 1 year of related experience. Salary to be determined – an hourly rate above $50/hour must be approved by the Director of Human Resources before the City extends an offer of employment. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 83 Packet Pg. 87 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 34 of 44 House Manager - H Facility supervisor of special events, productions, concerts, rentals – etc. Involves high public contact and customer service, including enforcement of rules and regulations. May included set- up of events. Inspector – H Provides inspections for capital and maintenance work, buildings and structures in any stage of construction, alteration or repair. Ensures compliance with standard construction practices, approved plans and specifications, governing laws and City ordinances. Prepares and maintains records of inspections, contractor’s daily activities, verification of materials and quantities used, notification to and contact with the residents in the project area, violation notices, investigations and other related data and information. Salary to be determined – Minimum base of $26.87. An hourly rate above $50/hour must be approved by the Director of Human Resources before the City extends an offer of employment. Instructor Aide - H Under general supervision, performs administrative work in support of Instructors in areas such as course preparation, classroom assistance and related activities. May require lifting up to 15 pounds. Instructor I - H Under general supervision, prepares classes, programs and camp curriculum, presents classes and field trips for schools and family audiences, and provides assignments to Instructor Aides and volunteers. Requires previous teaching experience. Requires prior in-depth knowledge of the disciplines to be taught. May require lifting up to 15 pounds. Instructor II - H Under limited supervision, prepares classes, programs and camp curriculum, presents classes and field trips for schools and family audiences, and provides assignments to Instructor Aides and volunteers. Requires at least two years of experience equivalent to that of an Instructor I. May require lifting up to 15 pounds. Instructor III-H Independently prepares classes, programs and camp curriculum, presents classes and field trips for schools and family audiences , and provides direction and mentoring for Instructor Is and IIs, Aides and volunteers. Serves in a leadership capacity within the department. Requires at least 4 years of teaching experience and in-depth knowledge of the disciplines to be taught. May require lifting up to 15 pounds. Journey-Level Laborer – H Performs various tasks involving physical labor in or on buildings, construction sites, demolition sites, streets, sidewalks, or on other construction projects. May operate hand and power tools of all types (e.g. air hammers, earth tampers, cement mixers, small mechanical hoists, surveying Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 84 Packet Pg. 88 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 35 of 44 and measuring equipment, and various other equipment and instruments). May clean and prepare sites, dig trenches, set braces to support the sides of excavations, erect scaffolding, clean up rubble and debris, and remove hazardous waste materials; may assist other craft workers. Uses independent judgment similar to that expected of a journey level laborer, within pre- established instructions similar to and consistent with industry practices for journey level laborers. Works under general supervision. Typically reports to a lead worker or supervisor. Requires a high school diploma or its equivalent with 1-3 years of related experience. Salary to be determined – an hourly rate above $50/hour must be approved by the Director of Human Resources before the City extends an offer of employment. Librarian - H Under supervision, assists customers with reference inquiries, provides instruction in the use of library resources and equipment; shelves materials and assists with core management or organization of materials. Distinguishing Characteristics: The Librarian classification is the professional entry level classification within the Library Division. The Librarian has the professional knowledge to identify, develop, interpret, and evaluate all policies, procedures, programs and services to ensure the best quality of service to public library users. It is a broad classification which covers a variety of work situations which require expertise in areas of primary responsibility, as well as in common areas such as materials selection, public library service and in computerized information systems. Significant portion of workday includes direct public contact. Work hours may include early mornings, evenings and weekends. ESSENTIAL DUTIES: Essential and other important responsibilities and duties may include, but are not limited to, the following: • Performs routine circulation tasks required to directly serve public, including registering and maintaining files of borrowers; interpreting customer accounts and checking in and out library materials via computerized equipment; accepting, payments for fines, bills, fees; assisting customer with inquiries regarding availability and status of items in collections, and interviewing and assisting users regarding circulation accounts and services. Refers circulation problems to circulation staff or manager. • May conduct library programs for children and adults; conduct tours and classes. • May conduct reference interview and analyze, interpret and answer inquiries utilizing resources in Palo Alto Libraries as well as other libraries and the community, referring unusual questions to a Senior Librarian (Librarian II) or supervisor; assist customers in use of facility including catalog, indexes, reference books and technology. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 85 Packet Pg. 89 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 36 of 44 • Performs library programming, including planning, coordination, promotion and the conduct of programs; cooperates with other City departments, community and library groups with program co-sponsorship. • Prepares displays to market the library’s collection; may write regular newsletter articles, book reviews and program announcements for e-newsletters and publications; assists with social media. • May update library web pages; update online calendars; contribute calendar items to community organizations and data bases. • Selects and de-selects library materials in one or more subject areas based on knowledge of budget available, collection size, analysis of community past usage patterns and other criteria; processes discarded materials. • Assist with recruits, interviews, schedules, trains, initiates and coordinates, work of clerical, paraprofessional, temporary and/or volunteer staff as assigned. • May collect, maintain and report statistical records for a variety of library measures. • As directed, performs copy and original cataloging and classification efficiently utilizing online computerized cataloging system; assigns access points for materials; establishes new bibliographic computer records in accordance with recognized standards. • Maintains specific library collections and equipment including housing, physical maintenance and arrangement. MINIMUM QUALIFICATIONS: Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills, and abilities which would typically be acquired through: • Master’s Degree in Library and Information Science or related education preferred. KNOWLEDGE, SKILLS, AND ABILITIES: • Ability to work effectively with public and co-workers in variety of circumstances. Ability to work with wide variety of people. • Knowledge of alphabetical and numerical filing systems. • Knowledge of the library catalog. • Ability to work varied schedule including early mornings, evenings and weekends • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include sitting for extended periods of time and operating assigned library equipment. • Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions. • Ability to operate assigned equipment. • Ability to make sound decisions in a manner consistent with the essential job functions. WORKING CONDITIONS / PHYSICAL REQUIREMENTS: Work in a library environment with the public, maintaining a professional appearance; sustained posture in a standing, walking or seated position for prolonged periods of time; perform bending, lifting, crouching and pushing items weighing up to 50 pounds; perform repetitive small hand and Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 86 Packet Pg. 90 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 37 of 44 arm motions for prolonged periods of time; may travel to other library facilities; exposed to computer screens for prolonged periods of time. Library Clerk - H Under close general supervision performs technical and clerical tasks; assists customers with their accounts; shelves materials; performs technical and clerical tasks as assigned. Distinguishing Characteristics: Library Clerk is a classification found in the Library Department and is distinguished by the performance of various technical and clerical duties under general supervision. Work hours may vary and include nights and weekends. Includes direct public contact. Some previous knowledge of library operations required. ESSENTIAL DUTIES: Essential and other important responsibilities and duties may include, but are not limited to, the following: • May answer customers’ questions. • Checks in/out items; performs standard, holds, special handling and sorts; issues library cards. • Works at the Accounts Desk; handles customer accounts and fines; provides computer assistance; performs shelving. • May assist customers with library technology. • Maintains computer files for library materials; adds, deletes and updates information. • Data enters bibliographic data into the online library system. • Communicates with vendors to request approved items or to ask questions; refers further communications to the supervisor. • Accepts and unpacks deliveries and shipments of library materials; checks for accuracy; returns incorrect or damaged materials to vendors. • Receives and invoices materials into the library’s computer system. • Performs RFID tagging Performs shelf reading. • Assists in the setup of programs; performs program cleanup. • Processes LINK+ items and locates items listed on hold for the library branch or on reserve for LINK+. • Assists with special projects and programs. • May perform mail delivery. • Provides basic assistance to customers. • Performs related duties and responsibilities as required. MINIMUM QUALIFICATIONS: Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills, and abilities which would typically be acquired through: • High school diploma or equivalent and 6 months experience working in a library Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 87 Packet Pg. 91 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 38 of 44 KNOWLEDGE, SKILLS, AND ABILITIES: • Ability to work effectively with public and co-workers in variety of circumstances. Ability to work with wide variety of people. • Knowledge of library procedures and item shelving structure. • Knowledge of alphabetical and numerical filing systems. • Knowledge of a personal computer and various software applications. • Knowledge of effective customer service. • Ability to use the library catalog. • Ability to perform cash handling and use a cash register. • Ability to perform basic mathematical calculations. • Ability to work varied schedule including mornings, evenings and weekends • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include sitting for extended periods of time and operating assigned library equipment. • Ability to work varied schedule including early mornings, evenings, and weekends. Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions. • Ability to operate assigned equipment. • Ability to make sound decisions in a manner consistent with the essential job functions. WORKING CONDITIONS / PHYSICAL REQUIREMENTS: Work in a library environment with the public; maintains a professional appearance; sustained posture in a standing, walking or seated position for prolonged periods of time; perform bending, lifting, crouching and pushing items weighing up to 50 pounds; perform repetitive small hand and arm motions for prolonged periods of time; may travel to other library facilities; exposed to computer screens for prolonged periods of time. Library Page - H Under close supervision, shelves materials; performs routine clerical and support tasks as assigned. Distinguishing Characteristics: Library Page is a classification found in the Library Department and is distinguished by the performance of routine clerical duties under supervision. Work hours may vary and include nights and weekends. May include direct public contact. No previous knowledge of library operations required. ESSENTIAL DUTIES: Essential and other important responsibilities and duties may include, but are not limited to, the following: • Shifts collections; pulls or weeds items; performs sweeps. • Returns library materials to the shelves. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 88 Packet Pg. 92 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 39 of 44 • Performs RFID tagging • Performs shelf reading. • Assists in the setup of programs; performs program cleanup. • Processes LINK+ and locates items listed on hold for the library branch or on reserve for Link+ • Performs general cleaning and organization of the library’s areas. • Assist with open and close procedures. • May assist with special projects and programs. • Performs mail delivery. • May provide directional assistance to customers. • Works with Automated Materials Handling machine; moving and sorting bins, and sorting returned items. • Performs related duties and responsibilities as required. MINIMUM QUALIFICATIONS: Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills, and abilities which would typically be acquired through: • No experience necessary. KNOWLEDGE, SKILLS, AND ABILITIES: • Ability to work effectively with public and co-workers in variety of circumstances. Ability to work with wide variety of people. • Knowledge of alphabetical and numerical filing systems. • Knowledge of the library catalog. • Ability to work varied schedule including early mornings, evenings and weekends • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include sitting for extended periods of time and operating assigned library equipment. • Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions. • Ability to operate assigned equipment. • Ability to make sound decisions in a manner consistent with the essential job functions. WORKING CONDITIONS / PHYSICAL REQUIREMENTS: Work in a library environment with the public, maintains a professional appearance; sustained posture in a standing, walking or seated position for prolonged periods of time; perform bending, lifting, crouching and pushing items weighing up to 50 pounds; perform repetitive small hand and arm motions for prolonged periods of time; may travel to other library facilities; exposed to computer screens for prolonged periods of time. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 89 Packet Pg. 93 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 40 of 44 Maintenance Assistant - H Under general supervision, responsible for skilled and semiskilled tasks in one or more of the following areas: Landscape and turf maintenance of parks and golf courses, including tree maintenance and turf renovation City building and facilities City streets, sewers, and storm drains City vehicles and equipment Performs related tasks as required. Requires experience with power equipment and a valid California driver’s license. May require drug testing. Open Space Technician - H Under general supervision performs work assignments in Parks and Open Space areas that assist in the protection, preservation and maintenance of Palo Alto open space lands. Entry-level positions that require familiarity with power tools such as weed whips and chain saws. Print Shop Assistant - H Under supervision, provides assistance in the Print Shop in duplication, finishing work, mail distribution and other support function duties, often under tight deadlines. Project Specialist - H Support for and administrative tasks related to City programs and projects on an ongoing basis, requiring technical and administrative skills such as scheduling, research and report writing, project development and design, ongoing project implementation and administration, and budget tracking and conformance. Recreation Leader I - H Entry level positions that do not require previous experience including: Teen leaders Gymnastics Instructors Sports camp assistants Special event Assistants Summer camp counselors Coaches Recreation Leader II - H Positions require at least one season of experience and certifications in a related field including: Sports Camp Leaders (CPR and First Aid) Sport Officials (CPR and First Aid) Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 90 Packet Pg. 94 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 41 of 44 Assistant Pool Manager Senior Swim Instructor/Lifeguard Summer camp assistants Coaches Recreation Leader III - H Positions require at least 2 years of experience and specialized skills or advanced certifications in a related field including: Summer Camp Leaders Teen Outreach Leaders Coaches Substitute Teachers Sports Camp Leaders (CPR and First Aid) Sport Officials (CPR and First Aid) Pool Manager Gymnastic/Dance Instructors (Recreation Leader II requirements and Safety Certification and one of the following certifications: Professional Development Program II, Kinder Accreditation for Teachers or Movement Education and Learning Development.) Staff Specialist – H Under limited supervision, performs professional work requiring specialized knowledge or training in a specific field in support of a City program or organizational unit. The work performed is generally varied in character and similar to or equally complex to that of a career position, but is not managerial. Salary to be determined – an hourly rate above $50/hour must be approved by the Director of Human Resources before the City extends an offer of employment. Stock Clerk - H Under supervision, performs a variety of inventory maintenance functions including receiving, storing, and delivering supplies. Includes maintaining and reviewing computerized inventory records; performs other related work as required. Swim Instructor/Lifeguard - H Monitors pool activities to enforce regulations and prevent accidents, rescue swimmers in distress, conducts swimming lessons in accordance with American Red Cross or other national recognized aquatics programs and performs other related duties as required. Certificates in Lifeguard Training, First Aid and CPR required. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 91 Packet Pg. 95 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 42 of 44 Technical Specialist - H Under general supervision, responsible for work that requires technical skills associated with one or more of the following areas: drafting/CAD, electronics, computer systems, engineering, environmental science, or planning. Zoological Assistant - H Under supervision, performs assignments that assist in the maintenance, control, and shelter of animals in the zoo and other City facilities. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 92 Packet Pg. 96 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 43 of 44 Appendix B- Salary Schedule Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 93 Packet Pg. 97 of 302 CITY OF PALO ALTO AND SEIU LOCAL 521-HOURLY UNIT July 1, 2023-June 30, 2025 Page 44 of 44 Appendix C Public Agency Retirement System (“P.A.R.S.”) Plan City of Palo Alto PST (Part-time, Seasonal and Temporary) Employees Retirement Plan As of the effective date of this contract, the City contracts with the Public Agency Retirement Services Alternate Retirement System (PARS ARS) to provide an alternative plan to Social Security for members of this Unit. The main components of the plan include: • Enrollment in the PARS 457 retirement plan is automatic for eligible employees (excludes employees previously enrolled in CalPERS). • All contributions are pre-tax and invested • Employees receive an annual statement of gains and losses • Employees may become eligible to receive their account balance when one of the following events occur: o Termination of employment o Retirement o Permanent or total disability o Death o Changed employment status to a position covered by another retirement system • An employee may elect either: o a one-time lump sum cash payment, which may be subject to federal and/or state income tax withholding, OR o A direct rollover without tax withholding to a traditional IRA or an eligible plan that accepts rollovers [e.g. 403(b), 457(b), 401(k)] A copy of the Plan Document is on file in Human Resources and may be reviewed upon advanced request. For questions or additional information, contact PARS at 800-540-6369. Item 2 Attachment A - SEIU Hourly MOA 2023-2025 Item 2: Staff Report Pg. 94 Packet Pg. 98 of 302 Effective 1/1/23 - Min Wage Effective Upon Council Adoption 8/26/23 (4% increase + target Adj.) Effective 7/16/24 (4% Increase) $25.56 $26.84 $27.91 $26.90 $28.25 $29.38 $28.32 $29.74 $30.93 $29.81 $31.30 $32.56 $31.38 $32.95 $34.27 $30.50 $32.02 $33.32 $32.10 $33.71 $35.07 $33.79 $35.48 $36.92 $35.57 $37.35 $38.86 $37.44 $39.32 $40.90 $25.56 $27.87 $28.98 $26.90 $29.34 $30.50 $28.32 $30.88 $32.11 $29.81 $32.50 $33.80 $31.38 $34.21 $35.58 $23.59 $24.79 $25.77 $24.83 $26.09 $27.13 $26.14 $27.46 $28.56 $27.52 $28.90 $30.06 $28.97 $30.42 $31.64 $20.69 $21.75 $22.61 $21.78 $22.89 $23.80 $22.93 $24.09 $25.05 $24.14 $25.36 $26.37 $25.41 $26.69 $27.76 $17.25 $18.38 $19.12 $18.16 $19.35 $20.13 $19.12 $20.37 $21.19 $20.13 $21.44 $22.31 $21.19 $22.57 $23.48 $19.57 $20.84 $21.69 $20.60 $21.94 $22.83 $21.68 $23.09 $24.03 $22.82 $24.31 $25.29 $24.02 $25.59 $26.62 $19.24 $20.49 $21.32 $20.25 $21.57 $22.44 $21.32 $22.71 $23.62 $22.44 $23.90 $24.86 $23.62 $25.16 $26.17 $17.25 $18.38 $19.12 $18.16 $19.35 $20.13 $19.12 $20.37 $21.19 $20.13 $21.44 $22.31 $21.19 $22.57 $23.48 $24.16 $25.73 $26.77 $25.43 $27.08 $28.18 $26.77 $28.51 $29.66 $28.18 $30.01 $31.22 $29.66 $31.59 $32.86 $29.41 $31.32 $32.58 $30.96 $32.97 $34.29 $32.59 $34.70 $36.09 $34.30 $36.53 $37.99 $36.10 $38.45 $39.99 4 5 2 9010 Non-exempt Instructor II - H 3 5 1 9009 Non-exempt Instructor I - H 3 4 1 2 4 5 2 9008 Non-exempt Instructor Aide - H 3 5 1 9007 Non-exempt House Manager - H 3 4 1 2 4 5 2 9006 Non-exempt Custodial Assistant - H 3 5 1 9005 Non-exempt Custodial Aide - H 3 4 1 2 4 5 2 9004 Non-exempt Clerical Assistant - H 3 5 1 9003 Non-exempt Building Service Person - H 3 4 1 2 4 5 2 9002 Non-exempt Assistant Park Ranger - H 3 5 1 9001 Non-exempt Administrative Specialist II - H 3 4 1 2 4 5 2 9000 Non-exempt Administrative Specialist I – H 3 Service Employees International Union (SEIU) ‐ Hourly Group Salary Schedule Job Code FLSA Job Title Step 1 Item 2 Attachment B - SEIU Hourly Salary Schedule 2023 - 2025 Item 2: Staff Report Pg. 95 Packet Pg. 99 of 302 Effective 1/1/23 - Min Wage Effective Upon Council Adoption 8/26/23 (4% increase + target Adj.) Effective 7/16/24 (4% Increase) $33.85 $36.05 $37.50 $35.63 $37.95 $39.47 $37.50 $39.95 $41.55 $39.47 $42.05 $43.74 $41.55 $44.26 $46.04 $31.05 $32.60 $33.92 $32.68 $34.32 $35.70 $34.40 $36.13 $37.58 $36.21 $38.03 $39.56 $38.12 $40.03 $41.64 $23.13 $25.21 $26.23 $24.35 $26.54 $27.61 $25.63 $27.94 $29.06 $26.98 $29.41 $30.59 $28.40 $30.96 $32.20 $17.25 $18.82 $19.58 $18.16 $19.81 $20.61 $19.12 $20.85 $21.69 $20.13 $21.95 $22.83 $21.19 $23.10 $24.03 $18.61 $19.82 $20.62 $19.59 $20.86 $21.71 $20.62 $21.96 $22.85 $21.71 $23.12 $24.05 $22.85 $24.34 $25.32 $18.61 $20.29 $21.10 $19.59 $21.36 $22.21 $20.62 $22.48 $23.38 $21.71 $23.66 $24.61 $22.85 $24.91 $25.91 $23.13 $24.28 $25.27 $24.35 $25.56 $26.60 $25.63 $26.91 $28.00 $26.98 $28.33 $29.47 $28.40 $29.82 $31.02 $33.46 $35.12 $36.55 $35.22 $36.97 $38.47 $37.07 $38.92 $40.49 $39.02 $40.97 $42.62 $41.07 $43.13 $44.86 $25.56 $26.84 $27.91 $26.90 $28.25 $29.38 $28.32 $29.74 $30.93 $29.81 $31.30 $32.56 $31.38 $32.95 $34.27 $17.25 $18.16 $19.12 $20.13 $21.19 $17.25 $18.38 $19.12 $18.16 $19.35 $20.13 $19.12 $20.37 $21.19 $20.13 $21.44 $22.31 $21.19 $22.57 $23.48 4 5 2 9020 Non-exempt Recreation Leader I - H 3 5 1 9019 Non-exempt Recreation Aide - H 3 4 1 2 4 5 2 9018 Non-exempt Project Specialist - H 3 5 1 9017 Non-exempt Project Construction Inspector - H 3 4 1 2 4 5 2 9016 Non-exempt Print Shop Assistant - H 3 5 1 9015 Non-exempt Open Space Technician - H 3 4 1 2 4 5 2 9014 Non-exempt Maintenance Assistant - H 3 5 1 9013 Non-exempt Library Page - H 3 4 1 2 4 5 2 9012 Non-exempt Library Clerk - H 3 5 1 9011 Non-exempt Librarian - H 3 4 1 2 4 5 2 9036 Non-exempt Instructor III-H 3 Service Employees International Union (SEIU) ‐ Hourly Group Salary Schedule Job Code FLSA Job Title Step 1 Item 2 Attachment B - SEIU Hourly Salary Schedule 2023 - 2025 Item 2: Staff Report Pg. 96 Packet Pg. 100 of 302 Effective 1/1/23 - Min Wage Effective Upon Council Adoption 8/26/23 (4% increase + target Adj.) Effective 7/16/24 (4% Increase) $19.12 $20.37 $21.19 $20.13 $21.44 $22.31 $21.19 $22.57 $23.48 $22.31 $23.76 $24.72 $23.48 $25.01 $26.02 $21.19 $22.57 $23.48 $22.31 $23.76 $24.72 $23.48 $25.01 $26.02 $24.72 $26.33 $27.39 $26.02 $27.72 $28.83 $18.51 $19.71 $20.49 $19.48 $20.75 $21.57 $20.50 $21.84 $22.71 $21.58 $22.99 $23.91 $22.72 $24.20 $25.17 $20.69 $21.75 $22.61 $21.78 $22.89 $23.80 $22.93 $24.09 $25.05 $24.14 $25.36 $26.37 $25.41 $26.69 $27.76 $17.25 $18.38 $19.12 $18.16 $19.35 $20.13 $19.12 $20.37 $21.19 $20.13 $21.44 $22.31 $21.19 $22.57 $23.48 $24.16 $25.73 $26.77 $25.43 $27.08 $28.18 $26.77 $28.51 $29.66 $28.18 $30.01 $31.22 $29.66 $31.59 $32.86 $29.41 $31.32 $32.58 $30.96 $32.97 $34.29 $32.59 $34.70 $36.09 $34.30 $36.53 $37.99 $36.10 $38.45 $39.99 $33.85 $36.05 $37.50 $35.63 $37.95 $39.47 $37.50 $39.95 $41.55 $39.47 $42.05 $43.74 $41.55 $44.26 $46.04 $17.32 $18.45 $19.19 $18.23 $19.42 $20.20 $19.19 $20.44 $21.26 $20.20 $21.52 $22.38 $21.26 $22.65 $23.56 $25.56 $27.22 $28.31 $26.90 $28.65 $29.80 $28.32 $30.16 $31.37 $29.81 $31.75 $33.02 $31.38 $33.42 $34.765 9030 Non-exempt Zoological Assistant - H 3 4 1 2 4 5 2 9029 Non-exempt Arts & Science Technician - H 3 5 1 9037 Non-exempt Arts & Science Professional III - H 3 4 1 2 4 5 2 9028 Non-exempt Arts & Science Professional II - H 3 5 1 9027 Non-exempt Arts & Science Professional I - H 3 4 1 2 4 5 2 9026 Non-exempt Arts & Science Aide - H 3 5 1 9025 Non-exempt Technical Specialist - H 3 4 1 2 4 5 2 9023 Non-exempt Stock Clerk - H 3 5 1 9022 Non-exempt Recreation Leader III - H 3 4 1 2 4 5 2 9021 Non-exempt Recreation Leader II - H 3 Service Employees International Union (SEIU) ‐ Hourly Group Salary Schedule Job Code FLSA Job Title Step 1 Item 2 Attachment B - SEIU Hourly Salary Schedule 2023 - 2025 Item 2: Staff Report Pg. 97 Packet Pg. 101 of 302 Item 2 Attachment B - SEIU Hourly Salary Schedule 2023 - 2025 Item 2: Staff Report Pg. 98 Packet Pg. 102 of 302 Compensation Plan Effective Pay Period Including July 1, 202317 – June 202521 Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 99 Packet Pg. 103 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 2 of 20 COMPENSATION PLAN CITY OF PALO ALTO Limited Hourly Employees SECTION I. DEFINITIONS At-Will Employment: Employee or Employer may terminate employment at any time with or without notice or cause. Limited Hourly Employee: An “At-Will” employee working full time or part time on a temporary basis (Intermittent), employees who work on an on-call basis or an employee working hours up to six consecutive months in support of a specified seasonal program such as summer camps or Internships (Seasonal). Limited Hourly Employees work less than 1000 hours per fiscal year unless otherwise authorized as provided in Section V of this Plan. PERS-Retiree: An individual that has retired from the Public Service System and returns to work on an intermittent or seasonal basis in a Limited Hourly classification not to exceed 960 hours within a fiscal year. Hiring of PERS retirees and work assignments for such employees must comply with PERS rules and regulations for such employment. Intern: An individual who has earned or completed course work toward an Associate Bachelor’s or Master’s Degree and offers his or her services for a limited and specific period of time in exchange for gaining actual work experience. Internships may be paid or unpaid depending on the assignment and budget of the requesting department. Summer internships typically consist of 6-12 week assignments between June and September. Assignments for interns working during the school year may be for the entire duration of a course or semester. PERS-Exempt Employee: An employee working full-time or part-time with no established career path or promotional ladder and the position is funded through capital improvement, one time projects or temporary accounts. Employment is expected to end at the conclusion of the project and at no time shall employment exceed five consecutive years. PERS exempt designation is subject to Human Resources Department approval. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 100 Packet Pg. 104 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 3 of 20 SECTION II. EMPLOYMENT REQUIREMENTS AND DOCUMENTATION All hourly appointments require preauthorization and approvals by designated Management personnel. No limited hourly or seasonal employee shall be assigned to regular employment for the duration of the hourly assignment. 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 given from personnel files is limited to verification of employment, length of employment and verification and disclosure of salary range information unless otherwise required by law. SECTION III. SALARY AND CLASSIFICATIONS It is the intent of the City of Palo Alto to compensate Limited Hourly Employees at a rate of pay similar to that of regular employees performing like work. Effective the first full pay period following Council adoption of this plan, all classifications will receive a four percent (4%) salary increase. Effective the first pay period following Council adoption of this plan classifications will receive targeted market adjustments as represented in the salary schedule. Effective the first full pay period including July 1, 2024, all classifications will receive a four percent (4%) salary increase. Classifications Limited Hourly Employees are to be hired within the classifications framework, as presented in the Attachment A, that is closest to a corresponding regular classification in both level of work performed and rate of pay. This compensation plan applies only to Limited Hourly Employees not those included in the SEIU Hourly Unit. In the event a Limited Hourly Employee is required to assume duties significantly above or below the level of those originally required when first hired, for a period of more than one pay period, the employee is to be reclassified into a new classification and into a higher or lower pay rate that most adequately corresponds to the new duties. SECTION IV. SPECIAL COMPENSATION A. Holiday Pay Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 101 Packet Pg. 105 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 4 of 20 Limited Hourly Employees are eligible to receive holiday pay only when they work 80 or more hours during the pay period in which the holidays fall. Number of hours of holiday pay is determined by the number of hours regularly scheduled on the day on which the holiday falls (i.e. 8, 9, 10). Effective January 1, 2024, Limited Hourly employees, excluding retired annuitants, shall be excused with pay for the hours they would otherwise be scheduled to work, for one (1) day within each calendar year, which is mutually agreed to by the employee and their supervisor. The one (1) floating holiday will be deemed forfeited and have no cash value, if not used each calendar year. B. Paid Leaves Limited Hourly Employees are not eligible for any paid leaves beyond those required by law. Other Leaves Limited Hourly Employees may be granted unpaid leaves of absence in cases of personal emergency, or when such absences would not be contrary to the best interest of the City and comply with City policies and procedures. Family leave will be granted in accordance with applicable State and Federal laws. Time off with pay to vote in any general or direct primary election shall be requested by the employee and granted by the City as provided in the State of California Elections Code. C. Overtime Pay Unless designated by the Director of Human Resources as exempt from the provisions of the Fair Labor Standards Act, all classifications of hourly employees are eligible for overtime pay at time and one-half when required to work more than 40 hours in a week (for example: 8 hours/five day week; 9 hours/four and one-half day week or other pre- determined and pre-approved work schedule) or on an official City holiday. D. Retirement 1. Part Time, Seasonal, Temporary (“PST”) Retirement Plan. All Limited Hourly Employees are required to contribute 7.5% of salary each pay period to the alternative PTS Retirement Plan (instead of contributions toward Social Security), except as described in section D(2) below. Contributions toward Medicare (1.45%) will also be deducted. Contribution and earning toward the PST Retirement Plan is not subject to Federal and State income taxes and are deferred until termination of employment with the City of Palo Alto. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 102 Packet Pg. 106 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 5 of 20 The PST retirement plan is currently administered by Public Agency Retirement Services (“PARS”).Contributions to the PTS Retirement Plan, in addition to any interest earned, will be refunded upon termination by request, if the request falls within the policy of the PTS Retirement Plan or may be kept in the Public Agency Retirement System (PARS) account if the Limited Hourly Employee elects this option. 2. California Public Employees’ Retirement System (“PERS”). PERS annuitants are excluded from participation in the P.S.T. Retirement Plan. Limited Hourly employees who have previously participated in and remain members in the California Public Employee Retirement System (“PERS”) or are otherwise required by law to be enrolled in CalPERS shall participate in P.E.R.S. to the extent required by law, in lieu of participation in the P.S.T. Retirement Plan. Enrollment in CalPERS will be completed consistent with CalPERS rules and regulations. Participation in CalPERS shall be under the retirement formula in effect at the time the employee is hired into the Hourly Bargaining Unit unless otherwise required by law. Employees enrolled in the PERS retirement system shall pay the full amount of the applicable employee contribution required by CalPERS for the PERS formula in which the employee is enrolled, as may be changed by CalPERS from time to time. Current contributions are as follows: a. 2.7% at 55 Formula: eight percent (8%) b. 2% at 60 Formula: seven percent (7%) c. 2% at 62 Formula: contribution required by the Public Employees’ Pension Reform Act, calculated at fifty percent (50%) of the normal cost. d. All CalPERS participants will contribute an additional percentage towards the Employer contributions at rates set below: a. 1% contribution towards the Employer contribution for all miscellaneous plans SECTION V. TERM OF EMPLOYMENT A. Limited Hourly Classifications The maximum employment term for limited hourly employees shall be less than 1000 hours during any fiscal year unless otherwise approved as provided in section V(B). The maximum hours for a retired PERS employee are 960 hours in a fiscal year. Limited Hourly Employees are “At-Will “employees and may be terminated at any time without right of appeal. Limited Hourly employment will not affect the probationary period or the service hire date of regular classified employment. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 103 Packet Pg. 107 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 6 of 20 B. Extension of Limited Hourly Employment. The City Manager may authorize a Limited Hourly Employee to work more than 1000 hours per fiscal year; subject to all applicable rules and regulations. Such authorization, along with a statement of the anticipated duration shall be provided in writing to Human Resources in advance of the extension of limited hourly employment. The duration of the employment assignment shall be reviewed every six months to ensure appropriateness of extension and ability to fund the extension within a department's allocated hourly budget. SECTION VI. PERFORMANCE REVIEWS AND SALARY INCREASES A. Performance Reviews 1. Limited Hourly Employees that demonstrate continued development and efficient and effective service reflected in their performance appraisal may be eligible to receive a salary step increase after one year date of hire and annually thereafter. Subsequent salary reviews are based on performance appraisals and will depend upon demonstrated satisfactory job performance and will not occur more than twice annually. 2. Performance Reviews are a tool to recognize and develop employees. Performance Reviews evaluate and document past performance and may provide development plans that will assist employees to realize their full potential. Performance Reviews should be completed on the Limited Hourly Employee Performance Review Form or other form designated by Human Resources. B. Salary Increases - General 1. A salary increase is based upon an appraisal of the hourly employee's job performance and such appraisal must be submitted with the salary request. A Limited Hourly Employee must receive a meets requirements rating in order to be considered for a salary increase. 2. The maximum number of salary increases a Limited Hourly Employee may receive in any one twelve-month working period is limited to two (2), regardless of total number of hours accumulated. C. Exceptional Leadership Ability and Job Performance Upon written justification and departmental and Human Resources Department approval, a Limited Hourly Employee who demonstrates EXCEPTIONAL leadership ability and job Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 104 Packet Pg. 108 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 7 of 20 performance may be given a merit raise, if he/she displays outstanding job performance. Such exceptional leadership must be documented on a designated performance appraisal form. For those positions with salary steps, salary increases may not exceed the steps set forth in approved salary schedules. SECTION VII. WORK SCHEDULES AND UNIFORMS A. Work Week and Work Day 1. The standard workday for limited hourly employees shall be 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 (four-day work week) or nine hours to be worked within a maximum of ten for four days with a fifth day of four hours (four and one-half day work week); or, within a 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, the standard work week shall be forty hours to be worked within five consecutive days. Work schedules shall be determined by departments based on business requirements. B. Uniforms 1. When uniforms are required by the City of Palo Alto to be worn by the employee as a condition of employment, such uniforms will be provided by the City of Palo Alto. SECTION VIII. LIMITED HOURLY CLASSIFICATIONS Limited Hourly Classifications are reflected on Appendix A of this document. SECTION IX. MANAGEMENT RIGHTS Subject to State law and the provisions of the City of Palo Alto Employer-Employee Relations Resolution, the rights of the City through its Council and Management include, but are not limited to: the exclusive right to determine the mission of its constituent departments, commissions and boards; set standards of service; determine the procedures and standards of selection from employment and promotion; establish and enforce dress and grooming standards; direct its employees; determine the methods and means to relieve its employees from duty because of lack of work or other legitimate reasons; maintain the efficiency of Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 105 Packet Pg. 109 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 8 of 20 governmental operations; determine the methods, means and personnel by which government operations are to be conducted; determine the content and intent of job classifications; determine methods of financing; determine style and/or types of City-issued wearing apparel, equipment or technology to be used; determine and/or change the facilities, methods, technology, means, organizational structure and size and composition of the work force and allocate and assign work by which the City operations are to be conducted; determine and change the number of locations, relocations and types of operations, processes and materials to be used in carrying out all City functions including but not limited to, the right to contract for or subcontract any work or operation of the City; to assign work to and schedule employees in accordance with requirements as determined by the City and assignments upon reasonable notice; establish and modify productivity and performance programs and standards including, but not limited to, quality, and quantity standards; and to require compliance therewith, take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 106 Packet Pg. 110 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 9 of 20 Appendix A Limited Hourly Employee Job Classifications Administrative Specialist I Performs administrative work that requires advanced skills or knowledge in support of a department/division or program. Administrative Specialist II Performs more complex administrative work that requires advance skills or knowledge in specialized software programs and data analysis in specialized areas in support of a department/division or program. Two years of experience equivalent to that of an Administrative Specialist I. Assistant Park Ranger Positions requiring at least 2 years of experience and specialized skills or advanced certificates for First Aid, CPR, and heavy equipment operation. Prior experience as an open space technician or park aide is essential. Building Serviceperson Under limited supervision, performs custodial duties and other related work as required to maintain City buildings and facilities in a clean and orderly condition. Members of this classification may be assigned to perform either public works duties or park duties. Two years of experience equivalent to that of a Custodial Assistant. Clerical Assistant Under supervision, performs routine and repetitive computer inputting and clerical tasks, and performs related work as required. May require cash handling. Custodial Aide Under close supervision, this entry-level position performs basic custodial duties as required to maintain City buildings and facilities, performs room set-ups and take-downs, and other related work. Custodial Assistant Under general supervision, performs custodial duties and other related work as required to maintain City buildings and facilities in a clean and orderly condition. Members of this classification may be assigned to perform either public works duties or parks duties. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 107 Packet Pg. 111 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 10 of 20 General Laborer – H Performs general manual tasks. Performs various types of manual labor as needed. Possesses knowledge of commonly-used concepts, practices, and procedures within a particular field. Performs tasks in conformance within pre-established instructions. Works under general supervision. Uses very limited independent judgment similar to that expected of an apprentice- helper level laborer, consistent with pre-established instructions. May report to a lead worker, but typically reports to a supervisor. Requires a high school diploma or its equivalent with 1 year of related experience. Salary to be determined – an hourly rate above $50/hour must be approved by the Director of Human Resources before the City extends an offer of employment. House Manager Facility supervisor of special events, productions, concerts, rentals – etc. Involves high public contact and customer service, including enforcement of rules and regulations. May include set- up of events. Instructor I Under general supervision, prepares classes, programs and camp curriculum, presents classes and field trips for schools and family audiences, and provides assignments to Instructor Aides and volunteers. Requires previous teaching experience. Requires prior in-depth knowledge of the disciplines to be taught. May require lifting up to 15 pounds. Instructor II Under limited supervision, prepares classes, programs and camp curriculum, presents classes and field trips for schools and family audiences, and provides assignments to Instructor Aides and volunteers. Requires at least two years of previous teaching experience. Requires prior in- depth knowledge of the disciplines to be taught. May require lifting up to 15 pounds. Instructor III Independently prepares classes, programs and camp curriculum, presents classes and field trips for schools and family audiences, and provides direction and mentoring for Instructor Is and IIs, Aides and volunteers. Serves in a leadership capacity within the department. Requires at least 4 years of teaching experience and in-depth knowledge of the disciplines to be taught. May require lifting up to 15 pounds. Instructor Aide Under general supervision, performs administrative work in support of Instructors in areas such as course preparation, classroom assistance and related activities. May require lifting up to 15 Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 108 Packet Pg. 112 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 11 of 20 pounds. Librarian Under supervision, assists customers with reference inquiries, provides instruction in the use of library resources and equipment; shelves materials and assists with core management or organization of materials. Distinguishing Characteristics: The Librarian classification is the professional entry level classification within the Library Division. The Librarian has the professional knowledge to identify, develop, interpret, and evaluate all policies, procedures, programs and services to ensure the best quality of service to public library users. It is a broad classification which covers a variety of work situations which require expertise in areas of primary responsibility, as well as in common areas such as materials selection, public library service and in computerized information systems. Significant portion of workday includes direct public contact. Work hours may include early mornings, evenings and weekends. ESSENTIAL DUTIES: Essential and other important responsibilities and duties may include, but are not limited to, the following: • Performs routine circulation tasks required to directly serve public, including registering and maintaining files of borrowers; interpreting customer accounts and checking in and out library materials via computerized equipment; accepting, payments for fines, bills, fees; assisting customer with inquiries regarding availability and status of items in collections, and interviewing and assisting users regarding circulation accounts and services. Refers circulation problems to circulation staff or manager. • May conduct library programs for children and adults; conduct tours and classes. • May conduct reference interview and analyze, interpret and answer inquiries utilizing resources in Palo Alto Libraries as well as other libraries and the community, referring unusual questions to a Senior Librarian (Librarian II) or supervisor; assist customers in use of facility including catalog, indexes, reference books and technology. • Performs library programming, including planning, coordination, promotion and the conduct of programs; cooperates with other City departments, community and library groups with program co-sponsorship. • Prepares displays to market the library’s collection; may write regular newsletter articles, book reviews and program announcements for e-newsletters and publications; assists with social media. • May update library web pages; update online calendars; contribute calendar items to Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 109 Packet Pg. 113 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 12 of 20 community organizations and data bases. • Selects and de-selects library materials in one or more subject areas based on knowledge of budget available, collection size, analysis of community past usage patterns and other criteria; processes discarded materials. • Assist with recruits, interviews, schedules, trains, initiates and coordinates, work of clerical, paraprofessional, temporary and/or volunteer staff as assigned. • May collect, maintain and report statistical records for a variety of library measures. • As directed, performs copy and original cataloging and classification efficiently utilizing online computerized cataloging system; assigns access points for materials; establishes new bibliographic computer records in accordance with recognized standards. • Maintains specific library collections and equipment including housing, physical maintenance and arrangement. MINIMUM QUALIFICATIONS: Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills, and abilities which would typically be acquired through: • Master’s Degree in Library and Information Science or related education preferred. KNOWLEDGE, SKILLS, AND ABILITIES: • Ability to work effectively with public and co-workers in variety of circumstances. Ability to work with wide variety of people. • Knowledge of alphabetical and numerical filing systems. • Knowledge of the library catalog. • Ability to work varied schedule including early mornings, evenings and weekends • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include sitting for extended periods of time and operating assigned library equipment. • Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions. • Ability to operate assigned equipment. • Ability to make sound decisions in a manner consistent with the essential job functions. WORKING CONDITIONS / PHYSICAL REQUIREMENTS: Work in a library environment with the public, maintaining a professional appearance; sustained posture in a standing, walking or seated position for prolonged periods of time; perform bending, lifting, crouching and pushing items weighing up to 50 pounds; perform repetitive small hand and arm motions for prolonged periods of time; may travel to other library facilities; exposed to computer screens for prolonged periods of time. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 110 Packet Pg. 114 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 13 of 20 Library Clerk Under close general supervision performs technical and clerical tasks; assists customers with their accounts; shelves materials; performs technical and clerical tasks as assigned. Distinguishing Characteristics Library Clerk is a classification found in the Library Department and is distinguished by the performance of various technical and clerical duties under general supervision. Work hours may vary and include nights and weekends. Includes direct public contact. Some previous knowledge of library operations required. ESSENTIAL DUTIES: Essential and other important responsibilities and duties may include, but are not limited to, the following: • May answer customers’ questions. • Checks in/out items; performs standard, holds, special handling and sorts; issues library cards. • Works at the Accounts Desk; handles customer accounts and fines; provides computer assistance; performs shelving. • May assist customers with library technology. • Maintains computer files for library materials; adds, deletes and updates information. • Data enters bibliographic data into the online library system. • Communicates with vendors to request approved items or to ask questions; refers further communications to the supervisor. • Accepts and unpacks deliveries and shipments of library materials; checks for accuracy; returns incorrect or damaged materials to vendors. • Receives and invoices materials into the library’s computer system. • Performs RFID tagging Performs shelf reading. • Assists in the setup of programs; performs program cleanup. • Processes LINK+ items and locates items listed on hold for the library branch or on reserve for LINK+. • Assists with special projects and programs. • May perform mail delivery. • Provides basic assistance to customers. • Performs related duties and responsibilities as required. MINIMUM QUALIFICATIONS: Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills, and abilities which would typically be acquired through: Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 111 Packet Pg. 115 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 14 of 20 • High school diploma or equivalent and 6 months experience working in a library KNOWLEDGE, SKILLS, AND ABILITIES: • Ability to work effectively with public and co-workers in variety of circumstances. Ability to work with wide variety of people. • Knowledge of library procedures and item shelving structure. • Knowledge of alphabetical and numerical filing systems. • Knowledge of a personal computer and various software applications. • Knowledge of effective customer service. • Ability to use the library catalog. • Ability to perform cash handling and use a cash register. • Ability to perform basic mathematical calculations. • Ability to work varied schedule including mornings, evenings and weekends • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include sitting for extended periods of time and operating assigned library equipment. • Ability to work varied schedule including early mornings, evenings, and weekends. Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions. • Ability to operate assigned equipment. • Ability to make sound decisions in a manner consistent with the essential job functions. WORKING CONDITIONS / PHYSICAL REQUIREMENTS: Work in a library environment with the public; maintains a professional appearance; sustained posture in a standing, walking or seated position for prolonged periods of time; perform bending, lifting, crouching and pushing items weighing up to 50 pounds; perform repetitive small hand and arm motions for prolonged periods of time; may travel to other library facilities; exposed to computer screens for prolonged periods of time. Library Page Under close supervision, shelves materials; performs routine clerical and support tasks as assigned. Distinguishing Characteristics: Library Page is a classification found in the Library Department and is distinguished by the performance of routine clerical duties under supervision. Work hours may vary and include nights and weekends. May include direct public contact. No previous knowledge of library operations required. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 112 Packet Pg. 116 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 15 of 20 ESSENTIAL DUTIES: Essential and other important responsibilities and duties may include, but are not limited to, the following: • Shifts collections; pulls or weeds items; performs sweeps. • Returns library materials to the shelves. • Performs RFID tagging • Performs shelf reading. • Assists in the setup of programs; performs program cleanup. • Processes LINK+ and locates items listed on hold for the library branch or on reserve for Link+ • Performs general cleaning and organization of the library’s areas. • Assist with open and close procedures. • May assist with special projects and programs. • Performs mail delivery. • May provide directional assistance to customers. • Works with Automated Materials Handling machine; moving and sorting bins, and sorting returned items. • Performs related duties and responsibilities as required. MINIMUM QUALIFICATIONS: Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills, and abilities which would typically be acquired through: • No experience necessary. KNOWLEDGE, SKILLS, AND ABILITIES: • Ability to work effectively with public and co-workers in variety of circumstances. Ability to work with wide variety of people. • Knowledge of alphabetical and numerical filing systems. • Knowledge of the library catalog. • Ability to work varied schedule including early mornings, evenings and weekends • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include sitting for extended periods of time and operating assigned library equipment. • Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions. • Ability to operate assigned equipment. • Ability to make sound decisions in a manner consistent with the essential job functions. WORKING CONDITIONS / PHYSICAL REQUIREMENTS: Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 113 Packet Pg. 117 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 16 of 20 Work in a library environment with the public, maintains a professional appearance; sustained posture in a standing, walking or seated position for prolonged periods of time; perform bending, lifting, crouching and pushing items weighing up to 50 pounds; perform repetitive small hand and arm motions for prolonged periods of time; may travel to other library facilities; exposed to computer screens for prolonged periods of time. Maintenance Assistant Under general supervision, responsible for skilled and semiskilled tasks in one or more of the following areas: Landscape and turf maintenance of parks and golf courses, including tree maintenance and turf renovation, City building and facilities, City streets, sewers, and storm drains, City vehicles and equipment. Performs related tasks as required. Requires experience with power equipment and a valid California driver’s license. May require drug testing. Management Specialist May perform work associated or equal in complexity with responsible City managerial or staff position. Classification may be used for individuals involved in confidential areas involved with employee relations, labor relations, and other discreet/confidential projects. Compensation to be determined according to tasks assigned and qualifications required. Open Space Technician Under general supervision performs work assignments in Parks and Open Space areas that assist in the protection, preservation and maintenance of Palo Alto open space lands. Entry- level positions that require familiarity with power tools such as weed whips and chain saws. Police Reserve I Reserve officer who has received requisite level of training to operate in a solo capacity. Police Reserve II Reserve officer who must be accompanied by a regular sworn officer or a Police Reserve I in performance of duties. Print Shop Assistant Under supervision, provides assistance in the Print Shop in duplication, finishing work, mail distribution and other support function duties, often under tight deadlines. Project Construction Inspector Inspection of City construction projects to ensure conformance with plan and specifications, documentation of contractor’s daily activities, verification of materials and quantities used, and Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 114 Packet Pg. 118 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 17 of 20 notification to and contact with the residents in the project area. Project Specialist Support for an administrative tasks related to City programs and projects on an ongoing basis, requiring technical and administrative skills such as scheduling, research and report writing, project development and design, ongoing project implementation and administration, and budget tracking and conformance. Recreation Aide Provides general clerical and unskilled labor/support of recreational programs. Recreation Leader I Entry level positions that do not require previous experience including: Teen leaders Gymnastics Instructors Sports Camp Assistants Special Event Assistants Summer Camp Counselors Coaches Recreation Leader II Positions require at least one season of experience and certifications in a related field including: Sports Camp Leaders (CPR and First Aid) Sport Officials (CPR and First Aide) Assistant Pool Manager Senior Swim Instructor/Lifeguard (Lifeguard Training, First Aid and CPR) Summer Camp Assistants Coaches Recreation Leader III Positions require at least 2 years of experience and specialized skills or advanced certifications in a related field including: Summer Camp Leaders Teen Outreach Leaders Coaches Substitute Teachers Sports Camp Leaders (CPR and First Aid) Sport Officials (CPR and First Aid) Pool Manager Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 115 Packet Pg. 119 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 18 of 20 Gymnastic/Dance Instructors (Recreation Leader II requirements and Safety Certification and one of the following certifications: Professional Development Program II, Kinder Accreditation for Teachers or Movement Education and Learning Development.) Stock Clerk Under supervision, performs a variety of inventory maintenance functions including receiving, storing and delivering supplies. Includes maintaining and reviewing computerized inventory records; performs other related work as required. Swim Instructor/Lifeguard Monitors pool activities to enforce regulations and prevent accidents, rescue swimmers in distress, conducts swimming lessons in accordance with American Red Cross or other national recognized aquatics programs and performs other related duties as required. Certificates in Lifeguard Training, First Aid and CPR required. Technical Specialist Under general supervision, responsible for work that requires technical skills associated with one or more of the following areas: drafting/CAD, electronics, computer systems, engineering, environmental science, or planning. Technician I Performs less advanced technical work than that of the Technician II class. Normally requires some specialized skills such as basic life support/paramedic, drafting, electronics, building maintenance, crafts, etc. and ability to operate associated vehicles or equipment. Technician II Under general supervision, responsible for work as performed by advanced technical skills associated with one or more of the following areas: drafting/CAD, electronics computer systems, engineering, environmental science, or planning. Classification may be used for individuals involved in conducting surveys, opinion polls, and other data collection assignments where analysis of data may be required. Arts & Science Professional I Under general supervision, performs highly skilled jobs in support of performing and visual arts. Examples would include exhibit design and installation, graphic design, exhibit mechanical and electrical design, exhibit problem solving, installation and maintenance, materials and parts sourcing for exhibits, managing outsourced custom fabrication of specialty parts, and working with Arts & Sciences Producers on design of exhibits, theater scenery, costume & lighting design and direction, studio supervision, development of educational programs, etc. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 116 Packet Pg. 120 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 19 of 20 Arts & Science Professional II Under limited supervision, performs highly specialized jobs in support of performing and visual arts. Examples would include exhibit design and installation, graphic design, exhibit mechanical and electrical design, exhibit problem solving, installation and maintenance, materials and parts sourcing for exhibits, managing outsourced custom fabrication of specialty parts, and working with Arts & Sciences Producers on design of exhibits,theater scenery, costume & lighting design and direction, studio supervision, development of educational programs, etc. Two years of experience equivalent to that of a Arts & Science Professional I. Arts & Science Professional III - H Independently performs highly specialized jobs in support of performing and visual arts. Examples would include exhibit design and installation, graphic design, exhibit mechanical and electrical design, exhibit problem solving, installation and maintenance, materials and parts sourcing for exhibits, managing outsourced custom fabrication of specialty parts, and working with Arts & Sciences Producers on design of exhibits, theater scenery, costume & lighting design and direction, studio supervision, development of educational programs, etc. Five years of experience equivalent to that of an Arts & Science Professional I. May require lifting up to 15 pounds. Arts & Science Technician Under supervision, performs paraprofessional and skilled support to a specific performing or visual arts program area such as lighting, props, building, painting, stitching – etc. Arts & Science Aide Under general supervision, performs general unskilled and some semiskilled tasks in support of theater, arts and museum programs. Zoological Assistant Under supervision, performs assignments that assist in the maintenance, control, and shelter of animals in the zoo and other City facilities. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 117 Packet Pg. 121 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2017-20212023-2025 Page 20 of 20 Appendix B Limited Hourly Salary Schedule Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 118 Packet Pg. 122 of 302 Compensation Plan Effective Pay Period Including July 1, 2023 – June 2025 Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 119 Packet Pg. 123 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 2 of 20 COMPENSATION PLAN CITY OF PALO ALTO Limited Hourly Employees SECTION I. DEFINITIONS At-Will Employment: Employee or Employer may terminate employment at any time with or without notice or cause. Limited Hourly Employee: An “At-Will” employee working full time or part time on a temporary basis (Intermittent), employees who work on an on-call basis or an employee working hours up to six consecutive months in support of a specified seasonal program such as summer camps or Internships (Seasonal). Limited Hourly Employees work less than 1000 hours per fiscal year unless otherwise authorized as provided in Section V of this Plan. PERS-Retiree: An individual that has retired from the Public Service System and returns to work on an intermittent or seasonal basis in a Limited Hourly classification not to exceed 960 hours within a fiscal year. Hiring of PERS retirees and work assignments for such employees must comply with PERS rules and regulations for such employment. Intern: An individual who has earned or completed course work toward an Associate Bachelor’s or Master’s Degree and offers his or her services for a limited and specific period of time in exchange for gaining actual work experience. Internships may be paid or unpaid depending on the assignment and budget of the requesting department. Summer internships typically consist of 6-12 week assignments between June and September. Assignments for interns working during the school year may be for the entire duration of a course or semester. PERS-Exempt Employee: An employee working full-time or part-time with no established career path or promotional ladder and the position is funded through capital improvement, one time projects or temporary accounts. Employment is expected to end at the conclusion of the project and at no time shall employment exceed five consecutive years. PERS exempt designation is subject to Human Resources Department approval. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 120 Packet Pg. 124 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 3 of 20 SECTION II. EMPLOYMENT REQUIREMENTS AND DOCUMENTATION All hourly appointments require preauthorization and approvals by designated Management personnel. No limited hourly or seasonal employee shall be assigned to regular employment for the duration of the hourly assignment. 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 given from personnel files is limited to verification of employment, length of employment and verification and disclosure of salary range information unless otherwise required by law. SECTION III. SALARY AND CLASSIFICATIONS It is the intent of the City of Palo Alto to compensate Limited Hourly Employees at a rate of pay similar to that of regular employees performing like work. Effective the first full pay period following Council adoption of this plan, all classifications will receive a four percent (4%) salary increase. Effective the first pay period following Council adoption of this plan classifications will receive targeted market adjustments as represented in the salary schedule. Effective the first full pay period including July 1, 2024, all classifications will receive a four percent (4%) salary increase. Classifications Limited Hourly Employees are to be hired within the classifications framework, as presented in the Attachment A, that is closest to a corresponding regular classification in both level of work performed and rate of pay. This compensation plan applies only to Limited Hourly Employees not those included in the SEIU Hourly Unit. In the event a Limited Hourly Employee is required to assume duties significantly above or below the level of those originally required when first hired, for a period of more than one pay period, the employee is to be reclassified into a new classification and into a higher or lower pay rate that most adequately corresponds to the new duties. SECTION IV. SPECIAL COMPENSATION A. Holiday Pay Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 121 Packet Pg. 125 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 4 of 20 Limited Hourly Employees are eligible to receive holiday pay only when they work 80 or more hours during the pay period in which the holidays fall. Number of hours of holiday pay is determined by the number of hours regularly scheduled on the day on which the holiday falls (i.e. 8, 9, 10). Effective January 1, 2024, Limited Hourly employees, excluding retired annuitants, shall be excused with pay for the hours they would otherwise be scheduled to work, for one (1) day within each calendar year, which is mutually agreed to by the employee and their supervisor. The one (1) floating holiday will be deemed forfeited and have no cash value, if not used each calendar year. B. Paid Leaves Limited Hourly Employees are not eligible for any paid leaves beyond those required by law. Other Leaves Limited Hourly Employees may be granted unpaid leaves of absence in cases of personal emergency, or when such absences would not be contrary to the best interest of the City and comply with City policies and procedures. Family leave will be granted in accordance with applicable State and Federal laws. Time off with pay to vote in any general or direct primary election shall be requested by the employee and granted by the City as provided in the State of California Elections Code. C. Overtime Pay Unless designated by the Director of Human Resources as exempt from the provisions of the Fair Labor Standards Act, all classifications of hourly employees are eligible for overtime pay at time and one-half when required to work more than 40 hours in a week (for example: 8 hours/five day week; 9 hours/four and one-half day week or other pre- determined and pre-approved work schedule) or on an official City holiday. D. Retirement 1. Part Time, Seasonal, Temporary (“PST”) Retirement Plan. All Limited Hourly Employees are required to contribute 7.5% of salary each pay period to the alternative PTS Retirement Plan (instead of contributions toward Social Security), except as described in section D(2) below. Contributions toward Medicare (1.45%) will also be deducted. Contribution and earning toward the PST Retirement Plan is not subject to Federal and State income taxes and are deferred until termination of employment with the City of Palo Alto. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 122 Packet Pg. 126 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 5 of 20 The PST retirement plan is currently administered by Public Agency Retirement Services (“PARS”).Contributions to the PTS Retirement Plan, in addition to any interest earned, will be refunded upon termination by request, if the request falls within the policy of the PTS Retirement Plan or may be kept in the Public Agency Retirement System (PARS) account if the Limited Hourly Employee elects this option. 2. California Public Employees’ Retirement System (“PERS”). PERS annuitants are excluded from participation in the P.S.T. Retirement Plan. Limited Hourly employees who have previously participated in and remain members in the California Public Employee Retirement System (“PERS”) or are otherwise required by law to be enrolled in CalPERS shall participate in P.E.R.S. to the extent required by law, in lieu of participation in the P.S.T. Retirement Plan. Enrollment in CalPERS will be completed consistent with CalPERS rules and regulations. Participation in CalPERS shall be under the retirement formula in effect at the time the employee is hired into the Hourly Bargaining Unit unless otherwise required by law. Employees enrolled in the PERS retirement system shall pay the full amount of the applicable employee contribution required by CalPERS for the PERS formula in which the employee is enrolled, as may be changed by CalPERS from time to time. Current contributions are as follows: a. 2.7% at 55 Formula: eight percent (8%) b. 2% at 60 Formula: seven percent (7%) c. 2% at 62 Formula: contribution required by the Public Employees’ Pension Reform Act, calculated at fifty percent (50%) of the normal cost. d. All CalPERS participants will contribute an additional percentage towards the Employer contributions at rates set below: a. 1% contribution towards the Employer contribution for all miscellaneous plans SECTION V. TERM OF EMPLOYMENT A. Limited Hourly Classifications The maximum employment term for limited hourly employees shall be less than 1000 hours during any fiscal year unless otherwise approved as provided in section V(B). The maximum hours for a retired PERS employee are 960 hours in a fiscal year. Limited Hourly Employees are “At-Will “employees and may be terminated at any time without right of appeal. Limited Hourly employment will not affect the probationary period or the service hire date of regular classified employment. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 123 Packet Pg. 127 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 6 of 20 B. Extension of Limited Hourly Employment. The City Manager may authorize a Limited Hourly Employee to work more than 1000 hours per fiscal year; subject to all applicable rules and regulations. Such authorization, along with a statement of the anticipated duration shall be provided in writing to Human Resources in advance of the extension of limited hourly employment. The duration of the employment assignment shall be reviewed every six months to ensure appropriateness of extension and ability to fund the extension within a department's allocated hourly budget. SECTION VI. PERFORMANCE REVIEWS AND SALARY INCREASES A. Performance Reviews 1. Limited Hourly Employees that demonstrate continued development and efficient and effective service reflected in their performance appraisal may be eligible to receive a salary step increase after one year date of hire and annually thereafter. Subsequent salary reviews are based on performance appraisals and will depend upon demonstrated satisfactory job performance and will not occur more than twice annually. 2. Performance Reviews are a tool to recognize and develop employees. Performance Reviews evaluate and document past performance and may provide development plans that will assist employees to realize their full potential. Performance Reviews should be completed on the Limited Hourly Employee Performance Review Form or other form designated by Human Resources. B. Salary Increases - General 1. A salary increase is based upon an appraisal of the hourly employee's job performance and such appraisal must be submitted with the salary request. A Limited Hourly Employee must receive a meets requirements rating in order to be considered for a salary increase. 2. The maximum number of salary increases a Limited Hourly Employee may receive in any one twelve-month working period is limited to two (2), regardless of total number of hours accumulated. C. Exceptional Leadership Ability and Job Performance Upon written justification and departmental and Human Resources Department approval, a Limited Hourly Employee who demonstrates EXCEPTIONAL leadership ability and job Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 124 Packet Pg. 128 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 7 of 20 performance may be given a merit raise, if he/she displays outstanding job performance. Such exceptional leadership must be documented on a designated performance appraisal form. For those positions with salary steps, salary increases may not exceed the steps set forth in approved salary schedules. SECTION VII. WORK SCHEDULES AND UNIFORMS A. Work Week and Work Day 1. The standard workday for limited hourly employees shall be 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 (four-day work week) or nine hours to be worked within a maximum of ten for four days with a fifth day of four hours (four and one-half day work week); or, within a 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, the standard work week shall be forty hours to be worked within five consecutive days. Work schedules shall be determined by departments based on business requirements. B. Uniforms 1. When uniforms are required by the City of Palo Alto to be worn by the employee as a condition of employment, such uniforms will be provided by the City of Palo Alto. SECTION VIII. LIMITED HOURLY CLASSIFICATIONS Limited Hourly Classifications are reflected on Appendix A of this document. SECTION IX. MANAGEMENT RIGHTS Subject to State law and the provisions of the City of Palo Alto Employer-Employee Relations Resolution, the rights of the City through its Council and Management include, but are not limited to: the exclusive right to determine the mission of its constituent departments, commissions and boards; set standards of service; determine the procedures and standards of selection from employment and promotion; establish and enforce dress and grooming standards; direct its employees; determine the methods and means to relieve its employees from duty because of lack of work or other legitimate reasons; maintain the efficiency of Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 125 Packet Pg. 129 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 8 of 20 governmental operations; determine the methods, means and personnel by which government operations are to be conducted; determine the content and intent of job classifications; determine methods of financing; determine style and/or types of City-issued wearing apparel, equipment or technology to be used; determine and/or change the facilities, methods, technology, means, organizational structure and size and composition of the work force and allocate and assign work by which the City operations are to be conducted; determine and change the number of locations, relocations and types of operations, processes and materials to be used in carrying out all City functions including but not limited to, the right to contract for or subcontract any work or operation of the City; to assign work to and schedule employees in accordance with requirements as determined by the City and assignments upon reasonable notice; establish and modify productivity and performance programs and standards including, but not limited to, quality, and quantity standards; and to require compliance therewith, take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 126 Packet Pg. 130 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 9 of 20 Appendix A Limited Hourly Employee Job Classifications Administrative Specialist I Performs administrative work that requires advanced skills or knowledge in support of a department/division or program. Administrative Specialist II Performs more complex administrative work that requires advance skills or knowledge in specialized software programs and data analysis in specialized areas in support of a department/division or program. Two years of experience equivalent to that of an Administrative Specialist I. Assistant Park Ranger Positions requiring at least 2 years of experience and specialized skills or advanced certificates for First Aid, CPR, and heavy equipment operation. Prior experience as an open space technician or park aide is essential. Building Serviceperson Under limited supervision, performs custodial duties and other related work as required to maintain City buildings and facilities in a clean and orderly condition. Members of this classification may be assigned to perform either public works duties or park duties. Two years of experience equivalent to that of a Custodial Assistant. Clerical Assistant Under supervision, performs routine and repetitive computer inputting and clerical tasks, and performs related work as required. May require cash handling. Custodial Aide Under close supervision, this entry-level position performs basic custodial duties as required to maintain City buildings and facilities, performs room set-ups and take-downs, and other related work. Custodial Assistant Under general supervision, performs custodial duties and other related work as required to maintain City buildings and facilities in a clean and orderly condition. Members of this classification may be assigned to perform either public works duties or parks duties. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 127 Packet Pg. 131 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 10 of 20 General Laborer – H Performs general manual tasks. Performs various types of manual labor as needed. Possesses knowledge of commonly-used concepts, practices, and procedures within a particular field. Performs tasks in conformance within pre-established instructions. Works under general supervision. Uses very limited independent judgment similar to that expected of an apprentice- helper level laborer, consistent with pre-established instructions. May report to a lead worker, but typically reports to a supervisor. Requires a high school diploma or its equivalent with 1 year of related experience. Salary to be determined – an hourly rate above $50/hour must be approved by the Director of Human Resources before the City extends an offer of employment. House Manager Facility supervisor of special events, productions, concerts, rentals – etc. Involves high public contact and customer service, including enforcement of rules and regulations. May include set- up of events. Instructor I Under general supervision, prepares classes, programs and camp curriculum, presents classes and field trips for schools and family audiences, and provides assignments to Instructor Aides and volunteers. Requires previous teaching experience. Requires prior in-depth knowledge of the disciplines to be taught. May require lifting up to 15 pounds. Instructor II Under limited supervision, prepares classes, programs and camp curriculum, presents classes and field trips for schools and family audiences, and provides assignments to Instructor Aides and volunteers. Requires at least two years of previous teaching experience. Requires prior in- depth knowledge of the disciplines to be taught. May require lifting up to 15 pounds. Instructor III Independently prepares classes, programs and camp curriculum, presents classes and field trips for schools and family audiences, and provides direction and mentoring for Instructor Is and IIs, Aides and volunteers. Serves in a leadership capacity within the department. Requires at least 4 years of teaching experience and in-depth knowledge of the disciplines to be taught. May require lifting up to 15 pounds. Instructor Aide Under general supervision, performs administrative work in support of Instructors in areas such as course preparation, classroom assistance and related activities. May require lifting up to 15 Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 128 Packet Pg. 132 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 11 of 20 pounds. Librarian Under supervision, assists customers with reference inquiries, provides instruction in the use of library resources and equipment; shelves materials and assists with core management or organization of materials. Distinguishing Characteristics: The Librarian classification is the professional entry level classification within the Library Division. The Librarian has the professional knowledge to identify, develop, interpret, and evaluate all policies, procedures, programs and services to ensure the best quality of service to public library users. It is a broad classification which covers a variety of work situations which require expertise in areas of primary responsibility, as well as in common areas such as materials selection, public library service and in computerized information systems. Significant portion of workday includes direct public contact. Work hours may include early mornings, evenings and weekends. ESSENTIAL DUTIES: Essential and other important responsibilities and duties may include, but are not limited to, the following: • Performs routine circulation tasks required to directly serve public, including registering and maintaining files of borrowers; interpreting customer accounts and checking in and out library materials via computerized equipment; accepting, payments for fines, bills, fees; assisting customer with inquiries regarding availability and status of items in collections, and interviewing and assisting users regarding circulation accounts and services. Refers circulation problems to circulation staff or manager. • May conduct library programs for children and adults; conduct tours and classes. • May conduct reference interview and analyze, interpret and answer inquiries utilizing resources in Palo Alto Libraries as well as other libraries and the community, referring unusual questions to a Senior Librarian (Librarian II) or supervisor; assist customers in use of facility including catalog, indexes, reference books and technology. • Performs library programming, including planning, coordination, promotion and the conduct of programs; cooperates with other City departments, community and library groups with program co-sponsorship. • Prepares displays to market the library’s collection; may write regular newsletter articles, book reviews and program announcements for e-newsletters and publications; assists with social media. • May update library web pages; update online calendars; contribute calendar items to Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 129 Packet Pg. 133 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 12 of 20 community organizations and data bases. • Selects and de-selects library materials in one or more subject areas based on knowledge of budget available, collection size, analysis of community past usage patterns and other criteria; processes discarded materials. • Assist with recruits, interviews, schedules, trains, initiates and coordinates, work of clerical, paraprofessional, temporary and/or volunteer staff as assigned. • May collect, maintain and report statistical records for a variety of library measures. • As directed, performs copy and original cataloging and classification efficiently utilizing online computerized cataloging system; assigns access points for materials; establishes new bibliographic computer records in accordance with recognized standards. • Maintains specific library collections and equipment including housing, physical maintenance and arrangement. MINIMUM QUALIFICATIONS: Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills, and abilities which would typically be acquired through: • Master’s Degree in Library and Information Science or related education preferred. KNOWLEDGE, SKILLS, AND ABILITIES: • Ability to work effectively with public and co-workers in variety of circumstances. Ability to work with wide variety of people. • Knowledge of alphabetical and numerical filing systems. • Knowledge of the library catalog. • Ability to work varied schedule including early mornings, evenings and weekends • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include sitting for extended periods of time and operating assigned library equipment. • Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions. • Ability to operate assigned equipment. • Ability to make sound decisions in a manner consistent with the essential job functions. WORKING CONDITIONS / PHYSICAL REQUIREMENTS: Work in a library environment with the public, maintaining a professional appearance; sustained posture in a standing, walking or seated position for prolonged periods of time; perform bending, lifting, crouching and pushing items weighing up to 50 pounds; perform repetitive small hand and arm motions for prolonged periods of time; may travel to other library facilities; exposed to computer screens for prolonged periods of time. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 130 Packet Pg. 134 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 13 of 20 Library Clerk Under close general supervision performs technical and clerical tasks; assists customers with their accounts; shelves materials; performs technical and clerical tasks as assigned. Distinguishing Characteristics Library Clerk is a classification found in the Library Department and is distinguished by the performance of various technical and clerical duties under general supervision. Work hours may vary and include nights and weekends. Includes direct public contact. Some previous knowledge of library operations required. ESSENTIAL DUTIES: Essential and other important responsibilities and duties may include, but are not limited to, the following: • May answer customers’ questions. • Checks in/out items; performs standard, holds, special handling and sorts; issues library cards. • Works at the Accounts Desk; handles customer accounts and fines; provides computer assistance; performs shelving. • May assist customers with library technology. • Maintains computer files for library materials; adds, deletes and updates information. • Data enters bibliographic data into the online library system. • Communicates with vendors to request approved items or to ask questions; refers further communications to the supervisor. • Accepts and unpacks deliveries and shipments of library materials; checks for accuracy; returns incorrect or damaged materials to vendors. • Receives and invoices materials into the library’s computer system. • Performs RFID tagging Performs shelf reading. • Assists in the setup of programs; performs program cleanup. • Processes LINK+ items and locates items listed on hold for the library branch or on reserve for LINK+. • Assists with special projects and programs. • May perform mail delivery. • Provides basic assistance to customers. • Performs related duties and responsibilities as required. MINIMUM QUALIFICATIONS: Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills, and abilities which would typically be acquired through: Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 131 Packet Pg. 135 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 14 of 20 • High school diploma or equivalent and 6 months experience working in a library KNOWLEDGE, SKILLS, AND ABILITIES: • Ability to work effectively with public and co-workers in variety of circumstances. Ability to work with wide variety of people. • Knowledge of library procedures and item shelving structure. • Knowledge of alphabetical and numerical filing systems. • Knowledge of a personal computer and various software applications. • Knowledge of effective customer service. • Ability to use the library catalog. • Ability to perform cash handling and use a cash register. • Ability to perform basic mathematical calculations. • Ability to work varied schedule including mornings, evenings and weekends • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include sitting for extended periods of time and operating assigned library equipment. • Ability to work varied schedule including early mornings, evenings, and weekends. Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions. • Ability to operate assigned equipment. • Ability to make sound decisions in a manner consistent with the essential job functions. WORKING CONDITIONS / PHYSICAL REQUIREMENTS: Work in a library environment with the public; maintains a professional appearance; sustained posture in a standing, walking or seated position for prolonged periods of time; perform bending, lifting, crouching and pushing items weighing up to 50 pounds; perform repetitive small hand and arm motions for prolonged periods of time; may travel to other library facilities; exposed to computer screens for prolonged periods of time. Library Page Under close supervision, shelves materials; performs routine clerical and support tasks as assigned. Distinguishing Characteristics: Library Page is a classification found in the Library Department and is distinguished by the performance of routine clerical duties under supervision. Work hours may vary and include nights and weekends. May include direct public contact. No previous knowledge of library operations required. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 132 Packet Pg. 136 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 15 of 20 ESSENTIAL DUTIES: Essential and other important responsibilities and duties may include, but are not limited to, the following: • Shifts collections; pulls or weeds items; performs sweeps. • Returns library materials to the shelves. • Performs RFID tagging • Performs shelf reading. • Assists in the setup of programs; performs program cleanup. • Processes LINK+ and locates items listed on hold for the library branch or on reserve for Link+ • Performs general cleaning and organization of the library’s areas. • Assist with open and close procedures. • May assist with special projects and programs. • Performs mail delivery. • May provide directional assistance to customers. • Works with Automated Materials Handling machine; moving and sorting bins, and sorting returned items. • Performs related duties and responsibilities as required. MINIMUM QUALIFICATIONS: Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills, and abilities which would typically be acquired through: • No experience necessary. KNOWLEDGE, SKILLS, AND ABILITIES: • Ability to work effectively with public and co-workers in variety of circumstances. Ability to work with wide variety of people. • Knowledge of alphabetical and numerical filing systems. • Knowledge of the library catalog. • Ability to work varied schedule including early mornings, evenings and weekends • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include sitting for extended periods of time and operating assigned library equipment. • Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions. • Ability to operate assigned equipment. • Ability to make sound decisions in a manner consistent with the essential job functions. WORKING CONDITIONS / PHYSICAL REQUIREMENTS: Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 133 Packet Pg. 137 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 16 of 20 Work in a library environment with the public, maintains a professional appearance; sustained posture in a standing, walking or seated position for prolonged periods of time; perform bending, lifting, crouching and pushing items weighing up to 50 pounds; perform repetitive small hand and arm motions for prolonged periods of time; may travel to other library facilities; exposed to computer screens for prolonged periods of time. Maintenance Assistant Under general supervision, responsible for skilled and semiskilled tasks in one or more of the following areas: Landscape and turf maintenance of parks and golf courses, including tree maintenance and turf renovation, City building and facilities, City streets, sewers, and storm drains, City vehicles and equipment. Performs related tasks as required. Requires experience with power equipment and a valid California driver’s license. May require drug testing. Management Specialist May perform work associated or equal in complexity with responsible City managerial or staff position. Classification may be used for individuals involved in confidential areas involved with employee relations, labor relations, and other discreet/confidential projects. Compensation to be determined according to tasks assigned and qualifications required. Open Space Technician Under general supervision performs work assignments in Parks and Open Space areas that assist in the protection, preservation and maintenance of Palo Alto open space lands. Entry- level positions that require familiarity with power tools such as weed whips and chain saws. Police Reserve I Reserve officer who has received requisite level of training to operate in a solo capacity. Police Reserve II Reserve officer who must be accompanied by a regular sworn officer or a Police Reserve I in performance of duties. Print Shop Assistant Under supervision, provides assistance in the Print Shop in duplication, finishing work, mail distribution and other support function duties, often under tight deadlines. Project Construction Inspector Inspection of City construction projects to ensure conformance with plan and specifications, documentation of contractor’s daily activities, verification of materials and quantities used, and Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 134 Packet Pg. 138 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 17 of 20 notification to and contact with the residents in the project area. Project Specialist Support for an administrative tasks related to City programs and projects on an ongoing basis, requiring technical and administrative skills such as scheduling, research and report writing, project development and design, ongoing project implementation and administration, and budget tracking and conformance. Recreation Leader I Entry level positions that do not require previous experience including: Teen leaders Gymnastics Instructors Sports Camp Assistants Special Event Assistants Summer Camp Counselors Coaches Recreation Leader II Positions require at least one season of experience and certifications in a related field including: Sports Camp Leaders (CPR and First Aid) Sport Officials (CPR and First Aide) Assistant Pool Manager Senior Swim Instructor/Lifeguard (Lifeguard Training, First Aid and CPR) Summer Camp Assistants Coaches Recreation Leader III Positions require at least 2 years of experience and specialized skills or advanced certifications in a related field including: Summer Camp Leaders Teen Outreach Leaders Coaches Substitute Teachers Sports Camp Leaders (CPR and First Aid) Sport Officials (CPR and First Aid) Pool Manager Gymnastic/Dance Instructors (Recreation Leader II requirements and Safety Certification and one of the following certifications: Professional Development Program II, Kinder Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 135 Packet Pg. 139 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 18 of 20 Accreditation for Teachers or Movement Education and Learning Development.) Stock Clerk Under supervision, performs a variety of inventory maintenance functions including receiving, storing and delivering supplies. Includes maintaining and reviewing computerized inventory records; performs other related work as required. Swim Instructor/Lifeguard Monitors pool activities to enforce regulations and prevent accidents, rescue swimmers in distress, conducts swimming lessons in accordance with American Red Cross or other national recognized aquatics programs and performs other related duties as required. Certificates in Lifeguard Training, First Aid and CPR required. Technical Specialist Under general supervision, responsible for work that requires technical skills associated with one or more of the following areas: drafting/CAD, electronics, computer systems, engineering, environmental science, or planning. Technician I Performs less advanced technical work than that of the Technician II class. Normally requires some specialized skills such as basic life support/paramedic, drafting, electronics, building maintenance, crafts, etc. and ability to operate associated vehicles or equipment. Technician II Under general supervision, responsible for work as performed by advanced technical skills associated with one or more of the following areas: drafting/CAD, electronics computer systems, engineering, environmental science, or planning. Classification may be used for individuals involved in conducting surveys, opinion polls, and other data collection assignments where analysis of data may be required. Arts & Science Professional I Under general supervision, performs highly skilled jobs in support of performing and visual arts. Examples would include exhibit design and installation, graphic design, exhibit mechanical and electrical design, exhibit problem solving, installation and maintenance, materials and parts sourcing for exhibits, managing outsourced custom fabrication of specialty parts, and working with Arts & Sciences Producers on design of exhibits, theater scenery, costume & lighting design and direction, studio supervision, development of educational programs, etc. Arts & Science Professional II Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 136 Packet Pg. 140 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 19 of 20 Under limited supervision, performs highly specialized jobs in support of performing and visual arts. Examples would include exhibit design and installation, graphic design, exhibit mechanical and electrical design, exhibit problem solving, installation and maintenance, materials and parts sourcing for exhibits, managing outsourced custom fabrication of specialty parts, and working with Arts & Sciences Producers on design of exhibits,theater scenery, costume & lighting design and direction, studio supervision, development of educational programs, etc. Two years of experience equivalent to that of a Arts & Science Professional I. Arts & Science Professional III - H Independently performs highly specialized jobs in support of performing and visual arts. Examples would include exhibit design and installation, graphic design, exhibit mechanical and electrical design, exhibit problem solving, installation and maintenance, materials and parts sourcing for exhibits, managing outsourced custom fabrication of specialty parts, and working with Arts & Sciences Producers on design of exhibits, theater scenery, costume & lighting design and direction, studio supervision, development of educational programs, etc. Five years of experience equivalent to that of an Arts & Science Professional I. May require lifting up to 15 pounds. Arts & Science Technician Under supervision, performs paraprofessional and skilled support to a specific performing or visual arts program area such as lighting, props, building, painting, stitching – etc. Arts & Science Aide Under general supervision, performs general unskilled and some semiskilled tasks in support of theater, arts and museum programs. Zoological Assistant Under supervision, performs assignments that assist in the maintenance, control, and shelter of animals in the zoo and other City facilities. Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 137 Packet Pg. 141 of 302 City of Palo Alto Limited Hourly Employee Compensation Plan 2023-2025 Page 20 of 20 Appendix B Limited Hourly Salary Schedule Item 2 Attachment C - Limited Hourly Compensation Plan 2023 - 2025 Item 2: Staff Report Pg. 138 Packet Pg. 142 of 302 Job Code FLSA Job Title Step Effective 1/1/2023 (Min Wage) Effective Upon Council Adoption 8/26/2023 (4% Increase +Target Adj) Effective 7/16/2024 (4% Increase) 1 $25.56 $26.84 $27.91 2 $26.90 $28.25 $29.38 910 Non-exempt Administrative Specialist I 3 $28.32 $29.74 $30.93 4 $29.81 $31.30 $32.56 5 $31.38 $32.95 $34.27 1 $30.50 $32.02 $33.32 2 $32.10 $33.71 $35.07 913 Non-exempt Administrative Specialist II 3 $33.79 $35.48 $36.92 4 $35.57 $37.35 $38.86 5 $37.44 $39.32 $40.90 1 $25.56 $27.87 $28.98 2 $26.90 $29.34 $30.50 915 Non-exempt Assistant Park Ranger 3 $28.32 $30.88 $32.11 4 $29.81 $32.50 $33.80 5 $31.38 $34.21 $35.58 1 $23.59 $24.79 $25.77 2 $24.83 $26.09 $27.13 916 Non-exempt Building Service Person 3 $26.14 $27.46 $28.56 4 $27.52 $28.90 $30.06 5 $28.97 $30.42 $31.64 1 $20.69 $21.75 $22.61 2 $21.78 $22.89 $23.80 917 Non-exempt Clerical Assistant 3 $22.93 $24.09 $25.05 4 $24.14 $25.36 $26.37 5 $25.41 $26.69 $27.76 1 $17.25 $18.38 $19.12 2 $18.16 $19.35 $20.13 918 Non-exempt Custodial Aide 3 $19.12 $20.37 $21.19 4 $20.13 $21.44 $22.31 5 $21.19 $22.57 $23.48 1 $19.57 $20.84 $21.69 2 $20.60 $21.94 $22.83 919 Non-exempt Custodial Assistant 3 $21.68 $23.09 $24.03 4 $22.82 $24.31 $25.29 5 $24.02 $25.59 $26.62 Limited Hourly Group Salary Schedule Item 2 Attachment D - Limited Hourly Salary Schedule 2023 - 2025 Item 2: Staff Report Pg. 139 Packet Pg. 143 of 302 Job Code FLSA Job Title Step Effective 1/1/2023 (Min Wage) Effective Upon Council Adoption 8/26/2023 (4% Increase +Target Adj) Effective 7/16/2024 (4% Increase) 1 $19.24 $20.49 $21.32 2 $20.25 $21.57 $22.44 920 Non-exempt House Manager 3 $21.32 $22.71 $23.62 4 $22.44 $23.90 $24.86 5 $23.62 $25.16 $26.17 1 $17.25 $18.38 $19.12 2 $18.16 $19.35 $20.13 921 Non-exempt Instructor Aide 3 $19.12 $20.37 $21.19 4 $20.13 $21.44 $22.31 5 $21.19 $22.57 $23.48 1 $24.16 $25.73 $26.77 2 $25.43 $27.08 $28.18 922 Non-exempt Instructor I 3 $26.77 $28.51 $29.66 4 $28.18 $30.01 $31.22 5 $29.66 $31.59 $32.86 1 $29.41 $31.32 $32.58 2 $30.96 $32.97 $34.29 923 Non-exempt Instructor II 3 $32.59 $34.70 $36.09 4 $34.30 $36.53 $37.99 5 $36.10 $38.45 $39.99 1 $33.85 $36.05 $37.50 2 $35.63 $37.95 $39.47 982 Non-exempt Instructor III 3 $37.50 $39.95 $41.55 4 $39.47 $42.05 $43.74 5 $41.55 $44.26 $46.04 1 $31.05 $32.60 $33.92 2 $32.68 $34.32 $35.70 924 Non-exempt Librarian 3 $34.40 $36.13 $37.58 4 $36.21 $38.03 $39.56 5 $38.12 $40.03 $41.64 1 $23.13 $25.21 $26.23 2 $24.35 $26.54 $27.61 925 Non-exempt Library Clerk 3 $25.63 $27.94 $29.06 4 $26.98 $29.41 $30.59 5 $28.40 $30.96 $32.20 Limited Hourly Group Salary Schedule Item 2 Attachment D - Limited Hourly Salary Schedule 2023 - 2025 Item 2: Staff Report Pg. 140 Packet Pg. 144 of 302 Job Code FLSA Job Title Step Effective 1/1/2023 (Min Wage) Effective Upon Council Adoption 8/26/2023 (4% Increase +Target Adj) Effective 7/16/2024 (4% Increase) 1 $17.25 $18.82 $19.58 2 $18.16 $19.81 $20.61 930 Non-exempt Library Page 3 $19.12 $20.85 $21.69 4 $20.13 $21.95 $22.83 5 $21.19 $23.10 $24.03 1 $18.61 $19.82 $20.62 2 $19.59 $20.86 $21.71 935 Non-exempt Maintenance Assistant 3 $20.62 $21.96 $22.85 4 $21.71 $23.12 $24.05 5 $22.85 $24.34 $25.32 1 $18.61 $20.29 $21.10 2 $19.59 $21.36 $22.21 936 Non-exempt Open Space Technician 3 $20.62 $22.48 $23.38 4 $21.71 $23.66 $24.61 5 $22.85 $24.91 $25.91 1 $23.13 $24.28 $25.27 2 $24.35 $25.56 $26.60 937 Non-exempt Print Shop Assistant 3 $25.63 $26.91 $28.00 4 $26.98 $28.33 $29.47 5 $28.40 $29.82 $31.02 1 $33.46 $35.12 $36.55 2 $35.22 $36.97 $38.47 938 Non-exempt Project Construction Inspector 3 $37.07 $38.92 $40.49 4 $39.02 $40.97 $42.62 5 $41.07 $43.13 $44.86 1 $25.56 $26.84 $27.91 2 $26.90 $28.25 $29.38 939 Non-exempt Project Specialist 3 $28.32 $29.74 $30.93 4 $29.81 $31.30 $32.56 5 $31.38 $32.95 $34.27 1 $17.25 2 $18.16 940 Non-exempt Recreation Aide 3 $19.12 4 $20.13 5 $21.19 Limited Hourly Group Salary Schedule Item 2 Attachment D - Limited Hourly Salary Schedule 2023 - 2025 Item 2: Staff Report Pg. 141 Packet Pg. 145 of 302 Job Code FLSA Job Title Step Effective 1/1/2023 (Min Wage) Effective Upon Council Adoption 8/26/2023 (4% Increase +Target Adj) Effective 7/16/2024 (4% Increase) 1 $17.25 $18.38 $19.12 2 $18.16 $19.35 $20.13 941 Non-exempt Recreation Leader I 3 $19.12 $20.37 $21.19 4 $20.13 $21.44 $22.31 5 $21.19 $22.57 $23.48 1 $19.12 $20.37 $21.19 2 $20.13 $21.44 $22.31 942 Non-exempt Recreation Leader II 3 $21.19 $22.57 $23.48 4 $22.31 $23.76 $24.72 5 $23.48 $25.01 $26.02 1 $21.19 $22.57 $23.48 2 $22.31 $23.76 $24.72 943 Non-exempt Recreation Leader III 3 $23.48 $25.01 $26.02 4 $24.72 $26.33 $27.39 5 $26.02 $27.72 $28.83 1 $18.51 $19.71 $20.49 2 $19.48 $20.75 $21.57 948 Non-exempt Stock Clerk 3 $20.50 $21.84 $22.71 4 $21.58 $22.99 $23.91 5 $22.72 $24.20 $25.17 1 $20.69 $21.75 $22.61 2 $21.78 $22.89 $23.80 950 Non-exempt Technical Specialist 3 $22.93 $24.09 $25.05 4 $24.14 $25.36 $26.37 5 $25.41 $26.69 $27.76 1 $17.25 $18.38 $19.12 2 $18.16 $19.35 $20.13 954 Non-exempt Arts & Science Aide 3 $19.12 $20.37 $21.19 4 $20.13 $21.44 $22.31 5 $21.19 $22.57 $23.48 1 $24.16 $25.73 $26.77 2 $25.43 $27.08 $28.18 951 Non-exempt Arts & Science Professional I 3 $26.77 $28.51 $29.66 4 $28.18 $30.01 $31.22 5 $29.66 $31.59 $32.86 Limited Hourly Group Salary Schedule Item 2 Attachment D - Limited Hourly Salary Schedule 2023 - 2025 Item 2: Staff Report Pg. 142 Packet Pg. 146 of 302 Job Code FLSA Job Title Step Effective 1/1/2023 (Min Wage) Effective Upon Council Adoption 8/26/2023 (4% Increase +Target Adj) Effective 7/16/2024 (4% Increase) 1 $29.41 $31.32 $32.58 2 $30.96 $32.97 $34.29 952 Non-exempt Arts & Science Professional II 3 $32.59 $34.70 $36.09 4 $34.30 $36.53 $37.99 5 $36.10 $38.45 $39.99 1 $33.85 $36.05 $37.50 2 $35.63 $37.95 $39.47 983 Non-exempt Arts & Science Professional III 3 $37.50 $39.95 $41.55 4 $39.47 $42.05 $43.74 5 $41.55 $44.26 $46.04 1 $17.32 $18.45 $19.19 2 $18.23 $19.42 $20.20 953 Non-exempt Arts & Science Technician 3 $19.19 $20.44 $21.26 4 $20.20 $21.52 $22.38 5 $21.26 $22.65 $23.56 1 $25.56 $27.22 $28.31 2 $26.90 $28.65 $29.80 955 Non-exempt Zoological Assistant 3 $28.32 $30.16 $31.37 4 $29.81 $31.75 $33.02 5 $31.38 $33.42 $34.76 1 2 960 Non-exempt Police Reserve I 3 $53.50 $55.64 4 5 1 2 961 Non-exempt Police Reserve II 3 $47.95 $49.87 4 5 1 $18.61 $19.36 $20.14 2 $19.59 $20.38 $21.20 962 Non-exempt Technician I 3 $20.62 $21.45 $22.32 4 $21.71 $22.58 $23.49 5 $22.85 $23.77 $24.73 $51.87 $57.87 Limited Hourly Group Salary Schedule Item 2 Attachment D - Limited Hourly Salary Schedule 2023 - 2025 Item 2: Staff Report Pg. 143 Packet Pg. 147 of 302 Job Code FLS A Job Title S te p Min Ma x Min Ma x Min Ma x TBD Non- Exe mpt Ge ne ra l La bore r $17.25 $68.88 $17.69 $71.64 $18.40 $74.51 TBD Non- Exe mpt Inspe c tor $17.25 $68.88 $17.69 $71.64 $18.40 $74.51 TBD Non- Exe mpt Journe y Le ve l La bore r $17.25 $68.88 $17.69 $71.64 $18.40 $74.51 TBD Non- Exe mpt S ta ff S pe c ialist $17.25 $68.88 $17.69 $71.64 $18.40 $74.51 9 72 Non- Exe mpt Ma nage me nt S pe c ia list $17.25 $130.00 $17.69 $130.00 $18.40 $130.00 Efft 1/1/2 0 2 3 (Min wa ge ) Effe c tive upon Counc il Adoption 8 /26 /2 3 (4 % Incre a se + Ta rge t Adj) Effec tive 7 /16 /2 0 2 4 (4 % Incre a se ) Limited Hourly Group Salary Schedule Item 2 Attachment D - Limited Hourly Salary Schedule 2023 - 2025 Item 2: Staff Report Pg. 144 Packet Pg. 148 of 302 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max 190 Non-Exempt Accountant 690P $42.15 $52.68 $63.22 $87,672 $109,574 $131,498 76 Exempt Administrative Assistant 750P $33.70 $42.12 $50.55 $70,096 $87,610 $105,144 115 Exempt Assistant Chief Building Official 405M $61.18 $76.47 $91.77 $127,254 $159,058 $190,882 132 Exempt Assistant Chief of Police 100A $100.25 $125.31 $150.38 $208,520 $260,645 $312,790 108 Exempt Assistant City Attorney 165A $76.94 $96.17 $115.41 $160,035 $200,034 $240,053 109 Exempt Assistant City Clerk 630M $46.58 $58.22 $69.87 $96,886 $121,098 $145,330 107 Exempt Assistant City Manager 20E $100.00 $124.99 $149.99 $208,000 $259,979 $311,979 73 Exempt Assistant Director Administrative Services 120A $82.99 $103.73 $124.48 $172,619 $215,758 $258,918 126 Exempt Assistant Director Community Services 150A $79.46 $99.32 $119.19 $165,277 $206,586 $247,915 1007 Exempt Assistant Director Human Resources 155A $76.84 $96.04 $115.25 $159,827 $199,763 $239,720 2001 Exempt Assistant Director Library Services 160A $71.75 $89.68 $107.62 $149,240 $186,534 $223,850 10 Exempt Assistant Director Planning & Community Environment 130A $80.81 $101.01 $121.22 $168,085 $210,101 $252,138 143 Exempt Assistant Director Public Works 140A $79.88 $99.84 $119.81 $166,150 $207,667 $249,205 168 Exempt Assistant Fleet Manager 585M $46.28 $57.85 $69.42 $96,262 $120,328 $144,394 102 Exempt Assistant Manager WQCP 240D $66.07 $82.58 $99.10 $137,426 $171,766 $206,128 30 Exempt Assistant to the City Manager 390M $64.79 $80.98 $97.18 $134,763 $168,438 $202,134 118 Exempt Chief Building Official 290M $78.36 $97.95 $117.54 $162,989 $203,736 $244,483 2008 Exempt Chief Communications Officer 135A $76.41 $95.51 $114.62 $158,933 $198,661 $238,410 112 Exempt Chief Planning Official 220D $70.08 $87.60 $105.12 $145,766 $182,208 $218,650 95 Exempt Chief Procurement Officer 235D $59.86 $74.82 $89.79 $124,509 $155,626 $186,763 82 Exempt Chief Transportation Official 140A $75.94 $94.92 $113.91 $157,955 $197,434 $236,933 96 Exempt Claims Investigator 660P $40.94 $51.17 $61.41 $85,155 $106,434 $127,733 24 Exempt Communication Specialist 615M $44.30 $55.37 $66.45 $92,144 $115,170 $138,216 89 Exempt Contracts Administrator 585P $52.00 $65.00 $78.00 $108,160 $135,200 $162,240 186 Non-Exempt Coordinator Library Circulation 675M $42.29 $52.86 $63.44 $87,963 $109,949 $131,955 191 Exempt Fire Marshal 125A $91.24 $114.04 $136.85 $189,779 $237,203 $284,648 11 Exempt Deputy City Attorney 375M $60.35 $75.43 $90.52 $125,528 $156,894 $188,282 71 Exempt Deputy City Clerk 720M $36.49 $45.61 $54.74 $75,899 $94,869 $113,859 55 Exempt Deputy City Manager 115A $79.33 $99.16 $119.00 $165,006 $206,253 $247,520 195 Exempt Deputy Director Technical Services Division 200D $74.84 $93.55 $112.26 $155,667 $194,584 $233,501 20 Exempt Deputy Fire Chief 110A $95.04 $118.79 $142.55 $197,683 $247,083 $296,504 81 Exempt Director Administrative Services/Chief Financial Officer 50E $96.60 $120.74 $144.89 $200,928 $251,139 $301,371 72 Exempt Director Community Services 45E $91.85 $114.81 $137.78 $191,048 $238,805 $286,582 City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 07/01/2023 (4% Increase) Hourly Rate Annual Salary Page 1 Item 2 Attachment E - Management & Professional Salary Schedule Item 2: Staff Report Pg. 145 Packet Pg. 149 of 302 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 07/01/2023 (4% Increase) Hourly Rate Annual Salary 1012 Exempt Director Development Services 145A $80.69 $100.86 $121.04 $167,835 $209,789 $251,763 133 Exempt Director Human Resources/Chief People Officer 55E $92.09 $115.11 $138.14 $191,547 $239,429 $287,331 128 Exempt Director Information Technology/Chief Information Officer 25E $100.58 $125.72 $150.87 $209,206 $261,498 $313,810 131 Exempt Director Libraries 60E $86.00 $107.50 $129.00 $178,880 $223,600 $268,320 2028 Exempt Director of Emergency Medical Services 215D $72.42 $90.52 $108.63 $150,634 $188,282 $225,950 2005 Exempt Director Office of Emergency Services 215D $72.42 $90.52 $108.63 $150,634 $188,282 $225,950 49 Exempt Director Office of Management and Budget 120A $82.99 $103.73 $124.48 $172,619 $215,758 $258,918 134 Exempt Director Planning & Community Environment 40E $96.84 $121.05 $145.26 $201,427 $251,784 $302,141 135 Exempt Director Public Works/City Engineer 30E $98.08 $122.60 $147.12 $204,006 $255,008 $306,010 121 Exempt Director Utilities 10E $115.75 $144.68 $173.62 $240,760 $300,934 $361,130 2002 Exempt Division Head Library Services 260D $62.69 $78.36 $94.04 $130,395 $162,989 $195,603 172 Exempt Division Manager Open Space, Parks & Golf 245D $65.17 $81.46 $97.76 $135,554 $169,437 $203,341 2031 Exempt Division Manager Planning 220D $70.08 $87.60 $105.12 $145,766 $182,208 $218,650 1005 Exempt Executive Assistant to the City Manager 705M $38.06 $47.57 $57.09 $79,165 $98,946 $118,747 139 Exempt Fire Chief 35E $109.32 $136.64 $163.97 $227,386 $284,211 $341,058 163 Exempt Hearing Officer 480M $53.57 $66.96 $80.36 $111,426 $139,277 $167,149 101 Exempt Human Resources Representative 735P $35.61 $44.51 $53.42 $74,069 $92,581 $111,114 90 Exempt Landscape Architect Park Planner 510M $51.02 $63.77 $76.53 $106,122 $132,642 $159,182 2015 Exempt Legal Fellow 755P $44.87 $56.08 $67.30 $93,330 $116,646 $139,984 171 Exempt Management Analyst 585M $46.28 $57.85 $69.42 $96,262 $120,328 $144,394 79 Exempt Manager Accounting 235D $63.30 $79.12 $94.95 $131,664 $164,570 $197,496 2007 Exempt Manager Airport 210D $72.66 $90.82 $108.99 $151,133 $188,906 $226,699 2023 Exempt Manager Budget 360M $67.16 $83.95 $100.74 $139,693 $174,616 $209,539 38 Exempt Manager Communications 525M $51.32 $64.15 $76.98 $106,746 $133,432 $160,118 154 Exempt Manager Community Services 630M $47.72 $59.64 $71.57 $99,258 $124,051 $148,866 169 Exempt Manager Community Services Sr Program 585M $51.26 $64.07 $76.89 $106,621 $133,266 $159,931 1013 Exempt Manager Development Center 495M $57.92 $72.40 $86.88 $120,474 $150,592 $180,710 63 Exempt Manager Economic Development 220D $66.88 $83.60 $100.32 $139,110 $173,888 $208,666 44 Exempt Manager Employee Benefits 450M $57.23 $71.53 $85.84 $119,038 $148,782 $178,547 45 Exempt Manager Employee Relations & Training 235D $63.30 $79.12 $94.95 $131,664 $164,570 $197,496 93 Exempt Manager Environmental Control Program 419M $62.26 $77.82 $93.39 $129,501 $161,866 $194,251 1116 Exempt Manager Facilities 445M $54.93 $68.66 $82.40 $114,254 $142,813 $171,392 2030 Exempt Manager Finance 223D $66.44 $83.04 $99.65 $138,195 $172,723 $207,272 Page 2 Item 2 Attachment E - Management & Professional Salary Schedule Item 2: Staff Report Pg. 146 Packet Pg. 150 of 302 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 07/01/2023 (4% Increase) Hourly Rate Annual Salary 127 Exempt Manager Fleet 255D $55.48 $69.35 $83.22 $115,398 $144,248 $173,098 2018 Exempt Manager Human Services 540M $53.81 $67.26 $80.72 $111,925 $139,901 $167,898 32 Exempt Manager Information Technology 230D $64.72 $80.89 $97.07 $134,618 $168,251 $201,906 2006 Exempt Manager Information Technology Security 230D $61.20 $76.50 $91.80 $127,296 $159,120 $190,944 158 Exempt Manager Laboratory Services 495M $52.28 $65.35 $78.42 $108,742 $135,928 $163,114 78 Exempt Manager Library Services 565M $50.61 $63.26 $75.92 $105,269 $131,581 $157,914 92 Exempt Manager Maintenance Operations 469M $51.22 $64.02 $76.83 $106,538 $133,162 $159,806 26 Exempt Manager Transportation Planning 345M $67.27 $84.08 $100.90 $139,922 $174,886 $209,872 51 Exempt Manager Planning 415M $61.47 $76.83 $92.20 $127,858 $159,806 $191,776 103 Exempt Manager Real Property 235D $59.86 $74.82 $89.79 $124,509 $155,626 $186,763 2011 Exempt Manager Revenue Collections 250D $56.26 $70.32 $84.39 $117,021 $146,266 $175,531 160 Exempt Manager Solid Waste 330M $65.84 $82.30 $98.76 $136,947 $171,184 $205,421 57 Exempt Manager Treasury, Debt & Investments 235D $61.72 $77.15 $92.58 $128,378 $160,472 $192,566 86 Exempt Manager Urban Forestry 436M $57.07 $71.33 $85.60 $118,706 $148,366 $178,048 178 Exempt Manager Water Quality Control Plant 205D $74.57 $93.21 $111.86 $155,106 $193,877 $232,669 39 Exempt Manager Watershed Protection 330M $67.09 $83.86 $100.64 $139,547 $174,429 $209,331 1008 Exempt Office of Emergency Services Coordinator 525M $49.78 $62.22 $74.67 $103,542 $129,418 $155,314 2024 Exempt Performance Auditor I 750P $33.70 $42.12 $50.55 $70,096 $87,610 $105,144 100 Exempt Performance Auditor II 585M $46.28 $57.85 $69.42 $96,262 $120,328 $144,394 148 Exempt Police Chief 15E $112.85 $141.06 $169.28 $234,728 $293,405 $352,102 2021 Exempt Chief Assistant City Attorney 101A $99.48 $124.35 $149.22 $206,918 $258,648 $310,378 2016 Exempt Principal Business Analyst 310M $63.77 $79.71 $95.66 $132,642 $165,797 $198,973 2029 Exempt Principal Planner 469M $51.63 $64.53 $77.44 $107,390 $134,222 $161,075 2003 Exempt Principal Management Analyst 360M $63.52 $79.40 $95.28 $132,122 $165,152 $198,182 2009 Exempt Project Manager 570M $52.34 $65.42 $78.51 $108,867 $136,074 $163,301 2012 Exempt Public Safety Communications Manager 495M $52.28 $65.35 $78.42 $108,742 $135,928 $163,114 166 Exempt Public Safety Program Manager 585M $46.28 $57.85 $69.42 $96,262 $120,328 $144,394 117 Exempt Senior Accountant 525M $55.93 $69.91 $83.90 $116,334 $145,413 $174,512 2013 Exempt Senior Business Analyst - M 420M $55.52 $69.40 $83.28 $115,482 $144,352 $173,222 187 Exempt Senior Engineer 300M $71.47 $89.33 $107.20 $148,658 $185,806 $222,976 106 Exempt Senior Executive Assistant 450M $54.12 $67.65 $81.18 $112,570 $140,712 $168,854 157 Exempt Senior Human Resources Administrator 545M $48.72 $60.89 $73.07 $101,338 $126,651 $151,986 14 Exempt Senior Management Analyst 465M $54.08 $67.59 $81.11 $112,486 $140,587 $168,709 Page 3 Item 2 Attachment E - Management & Professional Salary Schedule Item 2: Staff Report Pg. 147 Packet Pg. 151 of 302 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 07/01/2023 (4% Increase) Hourly Rate Annual Salary 130 Exempt Senior Performance Auditor 510M $51.02 $63.77 $76.53 $106,122 $132,642 $159,182 53 Exempt Senior Project Manager 300M $71.47 $89.33 $107.20 $148,658 $185,806 $222,976 33 Exempt Senior Technologist 420M $60.52 $75.65 $90.78 $125,882 $157,352 $188,822 155 Exempt Superintendent Animal Services 540M $48.59 $60.73 $72.88 $101,067 $126,318 $151,590 83 Exempt Superintendent Community Services 480M $58.01 $72.51 $87.02 $120,661 $150,821 $181,002 1117 Exempt Superintendent Recreation 480M $58.01 $72.51 $87.02 $120,661 $150,821 $181,002 2022 Exempt Supervising Librarian 675M $42.45 $53.06 $63.68 $88,296 $110,365 $132,454 161 Exempt Supervisor Facilities Management 600M $45.25 $56.56 $67.88 $94,120 $117,645 $141,190 113 Exempt Supervisor Inspection and Surveying 540M $48.59 $60.73 $72.88 $101,067 $126,318 $151,590 146 Exempt Supervisor Warehouse 660M $40.94 $51.17 $61.41 $85,155 $106,434 $127,733 181 Exempt Supervisor Water Quality Control Operations 525M $49.78 $62.22 $74.67 $103,542 $129,418 $155,314 2027 Exempt Utilities Chief Operating Officer 60E $83.41 $104.26 $125.12 $173,493 $216,861 $260,250 327 Exempt Supervisor Code Enforcement TBD $51.29 $64.11 $76.94 $106,683 $133,349 $160,035 905 Non-Exempt Human Resources Technician 830C $29.85 $37.31 $44.78 $62,088 $77,605 $93,142 903 Non-Exempt Legal Secretary-Confidential 820C $30.60 $38.24 $45.89 $63,648 $79,539 $95,451 67 Exempt Secretary to City Attorney 800C $36.26 $45.32 $54.39 $75,421 $94,266 $113,131 1004 Non-Exempt Senior Legal Secretary - Confidential 810C $33.70 $42.12 $50.55 $70,096 $87,610 $105,144 Confidential Classifications Page 4 Item 2 Attachment E - Management & Professional Salary Schedule Item 2: Staff Report Pg. 148 Packet Pg. 152 of 302 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Administrative Services Meeting Date: August 14, 2023 Report #:2307-1779 TITLE Adoption of a Resolution and Approving an Easement Relocation Agreement Relocating and Vacating a 25 Foot Public Service Easement at 220 Embarcadero Road RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or designee to execute the Easement Relocation Agreement relocating a public service easement on the commercial property located at 220 Embarcadero Road; and 2. Adopt a resolution summarily vacating a public service easement on the commercial property located at 220 Embarcadero Road after the relocated easement has been recorded. ANALYSIS On April 20, 1992, the City Council introduced and passed a resolution ordering the vacation of a street easement on a portion of Melville Avenue between Bryant and Emerson Streets, while reserving a 25-foot easement benefitting the City for underground and overhead public utilities purposes.1 This Public Utility Easement (“PUE”) is associated with the property owned by the Castilleja School Foundation (“Castilleja”). 2 On June 6, 2022, the City Council approved Castilleja’s applications for Architectural Review with Parking Adjustment, Conditional Use Permit, and Variance, and made several findings, determination and declarations.3 In connection with those applications, the City Council made it 1 General Vacation, Resolution No. 7086, recorded as Recording Number 11386298, Book M218, Page 0593 of Official Records of Santa Clara County. 2 https://www.cityofpaloalto.org/City-Hall/Hot-Topics/Castilleja-School 3 https://www.cityofpaloalto.org/files/f65eb77d-4d17-41a6-8158-44f1df3b649f/Casti-Signed-ROLUA-and- Exhibit.pdf Item 3 Item 3 Staff Report Item 3: Staff Report Pg. 1 Packet Pg. 153 of 302 a Condition of Approval that Castilleja relocate the existing 25-foot PUE to be within the boundaries of the driveway that is proposed near the Emerson Street and Melville Avenue intersection. Castilleja has agreed to relocate the existing 25-foot public utility easement. To relocate the easement, the City will execute an Easement Relocation Agreement creating a 25- foot PUE within the proposed new driveway and adopt a resolution to vacate the existing easement in accordance with Section 8333 of the California Streets and Highways Code. FISCAL/RESOURCE IMPACT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 3 Item 3 Staff Report Item 3: Staff Report Pg. 2 Packet Pg. 154 of 302 Recorded at no charge in accordance with City of Palo Alto Real Estate Division SPACE ABOVE LINE FOR RECORDER’S USE APN:124-12-034 Address:220 Embarcadero Road RELOCATION AND SUMMARY VACATION RESOLUTION NO. _____ RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO RELOCATING AND SUMMARILY VACATING A PUBLIC SERVICE EASEMENT AT 220 EMBARCADERO ROAD, PALO ALTO, CA WHEREAS, under General Vacation, Resolution No. 7086, recorded as Recording Number 11386298, Book M218, Page 0593 of Official Records of Santa Clara County, the City of Palo Alto reserved a 25-foot easement for public utilities purposes benefitting the City, and any right necessary to construct, maintain, operate, replace, remove, renew or enlarge any underground public utility facilities, existing overhead public utility facilities, sanitary sewers, storm drains and appurtenant structures in, upon, over, under or across the easement area; and WHEREAS, in connection with ACTION NO. 2022-02 RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION 1310 BRYANT STREET (CASTILLEJA) ARCHITECTURAL REVIEW 19PLN-00116 WITH PARKING ADJUSTMENT CONDITIONAL USE PERMIT AND VARIANCE 16PLN-00238, the City WHEREAS, the City Council of the City of Palo Alto intends to approve the Easement Relocation Agreement in Attachment “A” attached to this resolution to accept the relocated easement to supersede and summarily vacate the existing easement as more particularly described and depicted in the exhibits of that agreement; and WHEREAS, Section 8333 of the Streets and Highways Code authorizes the City Council to summarily vacate a public service easement in any of the following cases: (a) the easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed vacation, (b) the date of dedication or acquisition is less than five years, and more than one year, immediately preceding the proposed vacation, and the easement was not used continuously since that date, (c) the easement has been Item 3 Attachment A - Summary Vacation Resolution & Easement Relocation Agreement Item 3: Staff Report Pg. 3 Packet Pg. 155 of 302 superseded by relocation, or determined to be excess by the easement holder, and there are no NOW, THEREFORE, the City Council does hereby RESOLVE as follows: SECTION 1. The public service easement for utilities and incidental purposes described in Exhibit “A” and depicted in the plat map as Exhibit “B” in Attachment “A” will be relocated to the area described in Exhibit “C” and depicted in the plat map as Exhibit “D” in Attachment “A” from and after the date of recordation of the documents identified in Section 3 of this Resolution. 1. The public service easement described on Exhibit “A” and depicted on the plat map as SECTION 2. Upon the relocation of public service easement described in Section 1 to the area described in Exhibit “C” and depicted in the plat map as Exhibit “D” in Attachment “A”, the former public service easement described in Exhibit “A” and depicted in the plat map as Exhibit “B” in Attachment “A” will be vacated under the authority of California Streets and Highways Code Chapter 4 of part 3 of Division 9, commencing at Section 8330 et. seq. SECTION 3. Based upon the provisions of Section 8333 of the Streets and Highways Code, the City Council does hereby order that public service easement as shown on the said Exhibits “A” and “B” of Attachment “A” shall be summarily vacated and relocated as shown on the said Exhibits “C” and “D” of Attachment “A”. SECTION 4. The City Clerk, acting by and through the Real Property Manager, is hereby directed to record at the Santa Clara County Clerk-Recorder’s Office a certified copy of this Resolution, including the Maps. SECTION 5. Council action to relocate the public service easement is within the scope of the Environmental Impact Report prepared for the Castilleja School Project and adopted by the City Council on June 6, 2022 (SCH #2017012052). Item 3 Attachment A - Summary Vacation Resolution & Easement Relocation Agreement Item 3: Staff Report Pg. 4 Packet Pg. 156 of 302 ATTACHMENT A EASEMENT RELOCATION AGREEMENT Item 3 Attachment A - Summary Vacation Resolution & Easement Relocation Agreement Item 3: Staff Report Pg. 5 Packet Pg. 157 of 302 Item 3 Attachment A - Summary Vacation Resolution & Easement Relocation Agreement Item 3: Staff Report Pg. 6 Packet Pg. 158 of 302 Item 3 Attachment A - Summary Vacation Resolution & Easement Relocation Agreement Item 3: Staff Report Pg. 7 Packet Pg. 159 of 302 Item 3 Attachment A - Summary Vacation Resolution & Easement Relocation Agreement Item 3: Staff Report Pg. 8 Packet Pg. 160 of 302 Item 3 Attachment A - Summary Vacation Resolution & Easement Relocation Agreement Item 3: Staff Report Pg. 9 Packet Pg. 161 of 302 Item 3 Attachment A - Summary Vacation Resolution & Easement Relocation Agreement Item 3: Staff Report Pg. 10 Packet Pg. 162 of 302 Item 3 Attachment A - Summary Vacation Resolution & Easement Relocation Agreement Item 3: Staff Report Pg. 11 Packet Pg. 163 of 302 Item 3 Attachment A - Summary Vacation Resolution & Easement Relocation Agreement Item 3: Staff Report Pg. 12 Packet Pg. 164 of 302 Item 3 Attachment A - Summary Vacation Resolution & Easement Relocation Agreement Item 3: Staff Report Pg. 13 Packet Pg. 165 of 302 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: August 14, 2023 Report #:2306-1707 TITLE Approval of Contract with Enterprise Roofing Service, Inc. for the Lucie Stern Community Center Roof Underlayment Replacement Project; CEQA status - exempt under CEQA Guideline Sections 15301 and 15302 RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute construction contract C24187808 with Enterprise Roofing Service, Inc. in the amount of $386,986 for the Lucie Stern Community Center Roof Underlayment Replacement Project, Capital Improvement Program Roofing Replacement Project PF-00006; and 2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Enterprise Roofing Service, Inc. for related, additional but unforeseen work which may develop during the contract period, the total value of which shall not exceed $38,698. BACKGROUND The existing Lucie Stern Community Center roof has been in service since the construction of the building in 1934. The Spanish clay tile is still in good condition, but the underlayment has reached the end of its life and has been patched several times in various locations. To avoid the potential for larger leaks and structural damage to the building, staff has determined that the roof needs a complete underlayment replacement. Under the recommended contract1, 1Enterprise Roofing Service Inc., C24187808, Lucie Stern Community Center Roof Underlayment Contract; https://www.cityofpaloalto.org/files/assets/public/public-works/public-services/contracts/c24187808-lscc-roof- underlayment-contract.pdf Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 1 Packet Pg. 166 of 302 Enterprise Roofing Service Inc., will be responsible for replacing the roof underlayment at Lucie Stern Community Center. ANALYSIS This project will remove the existing Spanish clay tile roofing, which will be reinstalled. The old gutters will be removed. The copper gutters will be saved for reuse. The old underlayment will be removed and disposed of. Dry rot repairs will be made to the roof surface and fascia boards. New underlayment system will be installed. Rain gutter system will be reinstalled. The old Spanish clay tiles will be reinstalled along with some new tiles due to existing broken tiles and some expected breakage during removal. All fascia boards and any new exposed eave boards will be repainted. The change order amount of $38,698 (which equals 10 percent of the total contract) is requested for related, additional but unforeseen work which may develop during the contract term. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff also confirmed with the California Department of Industrial Relations (DIR) that the contractor has an active DIR registration. Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 2 Packet Pg. 167 of 302 FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 3 Packet Pg. 168 of 302 Bid Summary Lucie Stern Community Center Roof Underlayment Replacement Project IFB187808 Vendor Name Bid Amount Enterprise Roofing Service $386,986.00 Roofing Constructors, Inc. dba Western Roofing Service $525,836.00 Waterproofing Associates $638,768.00 Alcal Specialty Contracting, Inc.$656,850.00 Item 4 Attachment A - Bid Summary for Lucie Stern Community Center Roof Underlayment Replacement Project Item 4: Staff Report Pg. 4 Packet Pg. 169 of 302 2 1 4 8 City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: August 14, 2023 Report #:2305-1416 TITLE Adoption of a Comprehensive Economic Development Strategy to Guide City Priorities, Initiatives, and Project Outcomes. CEQA Status - Not a Project. RECOMMENDATION Staff recommends that the City Council receive the Comprehensive Economic Development Strategy developed by the City’s consultant Streetsense and approve this report to guide and inform City priorities, initiatives, projects, to support outcomes in support of economic vitality. EXECUTIVE SUMMARY Approval of the Comprehensive Economic Development Strategy will provide guiding principles and a framework to inform and guide continued work to support and actively promote the City’s economic vitality. This report reflects over a year of work with stakeholders, data analysis and City Council discussions. These actions will inform future resource allocation, policy, and programming decisions for the City of Palo Alto and partners toward achieving a balanced and competitive future. Adoption of this report completes the Council priority Economic Recovery and Transition (ER&T) objective to adopt a comprehensive economic development strategy, a milestone in the continued actions to support the outcomes desired. Although adoption of this report does not have an immediate financial impact, it is expected that implementation will require resources and will be brought forward as programs and projects take shape. BACKGROUND Streetsense was brought on to “develop a market-informed economic development strategy that will ensure Palo Alto's post-COVID competitiveness by identifying impactful public sector interventions, policies and investments for which there is both need and consensus for action.” This session is the third and final planned discussion between Streetsense and the City Council presenting a comprehensive economic development strategy based on the prior discussions with the Council and community stakeholders as well as diagnostics findings. Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 1 Packet Pg. 170 of 302 2 1 4 8 On November 7, 20221, Streetsense presented their in-progress work to City Council. At that meeting, they discussed the purpose and goals of the comprehensive economic development strategy, the phases and timeline of their project, and preliminary considerations and findings from their work to date. th, 2023, Streetsense presented a ‘diagnostic’ and facilitated a discussion and feedback on the diagnostic findings and draft Guiding Principles to establish general consensus of the City Council through its discussion for the final product, this report on economic development strategies for Palo Alto. ANALYSIS •Most significant tax base contributors; Face the greatest competition for visitors within the region; Must maintain "best in class" status to remain competitive •Moderate tax base impacts; Employs local promotion and marketing strategies, if any; Tend to benefit from activations that meet community interests and needs 1 City Council Staff Report November 2, 2022 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#page=8 Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 2 Packet Pg. 171 of 302 2 1 4 8 •Minimal tax base impacts; Least affected by the COVID-19 pandemic and typically the most stable asset class; Local customer base with little need for promotion Guiding principles were identified through stakeholder engagement including multiple study session discussions with the City Council and the final report recommendations are organized around these. 1) Reinforce each district's distinct scale and offerings by stabilizing and reinforcing Downtown as a destination, embracing California Avenue as a community and neighborhood serving place, and supporting existing Neighborhood Centers 2) Improve accessibility by embracing walking and biking solutions to/from/within all of the City's commercial districts and addressing parking policies and systems 3) Adopt policies that reflect changing market conditions by easing the regulatory burden for businesses, removing outdating restrictions that create hurdles to tenancy, and focus retail and retail like uses in places where they are market supported. Organized by each of these principles, this comprehensive strategy identifies 10 recommendations with action items recommended within each. Below is a summary table of the recommendations and action items. The full report can be found in Attachment A. The full report is organized as follows: Each guiding principle has recommended strategies accompanied by one or more distinct actions with associated champions, the entity recommended to lead implementation efforts, and partners and city staff who are helpful as support. Each strategy and associated actions apply to classifications of retail and Downtown Palo Alto, California Avenue, Neighborhood Centers, or a combination thereof, and may also apply to other retail areas in the City as the studied districts are representative, not exclusive. Each recommendation is explained with a summary of why it is critical and how it aligns with existing city efforts, if applicable. Lastly, most are validated with a best practice example from around the country. The following At A Glance Recommendations inform prioritization with classifications •Tier 1 In support/coordination of ongoing city efforts •Tier 2 New near medium term and low medium budget •Tier 3 New long term and medium high budget Guiding Principle 1 1) Upgrade highly used and visible public and private realm spaces to promote district definition and encourage activation. 1.1 Redesign University Avenue streetscape to provide wider sidewalk space for walking, gathering, and outdoor dining through a construction project to be funded by property owners. [Tier 1] Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 3 Packet Pg. 172 of 302 2 1 4 8 1.2 Continue exploring the Car-Free Streets Initiative for California Avenue and Ramona Street to optimize a balanced future. [Tier 1] 1.3 Support outdoor dining and gathering options on sidewalks and within on-street parklets with by-right allowances within two feet of storefronts and creating a consolidated street activation resource. [Tier 1] 1.4 Invest in cohesive district branding through wayfinding, signage, public art, and gateway features within the district and along the district boundaries to better define and announce the area as a collective destination. For Neighborhood Centers, encourage public art, like murals and other community-centered installations. [Tier 2] These align with Council priority outcomes, specifically ER&T focus on Commercial Corridors, Downtown and California Ave. objectives e, h, i, and j. Each of these objectives are in progress with milestones expected to be reached by the end of the calendar year. Objectives: Begin implementation of next phase of parklet regulations to the community. Select consultant to conduct a study that informs the development of a permanent car-free streets ordinance (ERT6&7); Approve concept plan for University Ave streetscape and provide direction on capital project funding (ERT 5); Extend temporary closure for car free streets (ERT6&7). 2) Encourage the creation of and support District Management Entities (DMEs) for district promotion, programming, and increased maintenance. 2.1 Create a task force to explore successful regional DMEs of various scales and structures to inform an appropriate DME for Downtown Palo Alto, one that enables property and business owners to advocate and act (with resources) on their own behalf. [Tier 2] 2.2 Formalize a DME, like the California Avenue Business Association/Merchants of California Avenue and encourage membership of a California Main Street Program. [Tier 2] 3) Pursue business retention, development, and attraction initiatives for local and small businesses. 3.1 Create a public private small and local business incubation and vacant storefront program connecting landlords experiencing vacancy with small and local businesses seeking brick and mortar space and local artists to aid in activation. [Tier 2] 3.2 Consider allocating funds towards a shop local eGift card program to incentivize patronage of local business. [Tier 2] These aligns directly with a Council Priority outcome, specifically ER&T focus on Commercial Corridors, Downtown and California Ave. objective g, align Business Improvement District (BID) priorities and investments to the Comprehensive Economic Development Strategy (ERT1). This objective is in progress in partnership with the Chamber of Commerce and former members of the Palo Alto Downtown Business Association (PADBA). 4) Promote tourism city wide to increase longer business "bleisure" travel and grow hotel weekend occupancy rates with non-business travel. Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 4 Packet Pg. 173 of 302 2 1 4 8 4.1 Provide Palo Alto Chamber of Commerce the resources to promote tourism citywide to accurately highlight and consistently update Palo Alto's destination offerings, hotels, restaurants, events, and ways to get around in an easy-to-use online platform and app. [Tier 2] This would be a new initiative though a light to medium financial impact. City provides funding annually as a member of the Chamber of Commerce. In addition, staff partner with the Chamber to support activities and ensure collaboration and coordination often resulting in specific financial support at Council’s behest such as the grant of funding to support “3rd Thursdays” on California Avenue. Guiding Principle 2 5) Fix broken pedestrian and cycling links to increase accessibility to, from, and within commercial districts. 5.1 Include more signage, wayfinding and bicycle lane markings along critical bike routes to aid safe and easy travel to/from shopping districts by biking and walking. [Tier 1] 5.2 Include mid-block pedestrian crossings and/or raised traffic tables where desire paths lack safe crossings and deemed safe to do so. [Tier 3] 5.3 Consider removing free rights at major intersections to aid in safe intersections for all modes of transport. [Tier 3] This aligns in part with a capital project to enhance wayfinding in these corridors and will be supported by Council Objective m, which advances the Bike and Pedestrian Transportation Plan. Remaining actions would be new long-term investments. 6) Invest in first and last mile transportation options that increase equitable access to, from, and within commercial districts. 6.1 Incorporate a micro mobility (bike and/or scooter share) program that engages all shopping districts and destinations across the City of Palo Alto. [Tier 1] 6.2 Participate in advanced regional micro mobility options. [Tier 2] 6.3 Incentivize e-mobility using local resources. [Tier 2] 6.4 Support and incentivize on demand transit service and ridership through promotional programming within shopping districts. [Tier 1] The City has implemented a pilot for demand transit services through its Palo Alto Link (PAL) service. As with the above goal, Council Objective m. would also inform and advance pedestrian and transportation strategies. Remaining actions would be new near to medium term actions with a medium financial impact. 7) Reinforce walkability within districts to encourage longer duration of stay and activation. 7.1 Select specific public alleyways with high visibility and at least 20 feet in width to improve for increased permeability and place making. [Tier 2] 7.2 Create a mural competition or program for select side and rear building facades garnering the most visibility from main streets. [Tier 2] Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 5 Packet Pg. 174 of 302 2 1 4 8 7.3 Limit new curb cuts and aim to remove overly redundant curb cuts with any future redevelopment along public right of way of neighborhood centers. [Tier 3] These actional all reflect new projects or initiatives ranging from near term and low budget impact to longer term with significant investment needs. Staff have initiative some pilot programs such as the murals on California Avenue, however, these have been adhoc in nature. 8) Update and simplify parking policies, systems, and signage to ease navigation to and use of parking. 8.1 Embrace technology by incorporating digital signage for easier navigation to available parking within and outside of parking areas and tie information into an app-based parking management system to ease use and parking predictability. [Tier 1] 8.2 Consider a small business employee access program that offers reduced employee parking fees, easily transferrable employee parking permits, and/or incentivized use of transit, micro mobility options, and carpooling. [Tier 1] All of these actions are in support of ongoing projects already in progress. Capital projects such as the parking wayfinding in City garages and pilot adjustments to parking programs such as the new lower daily parking permit fee of $8 from the previous $25, and the implementation of the new parking permit system are all examples of projects and programs that directly support these actions. Guiding Principle 3 9) Streamline, update and/or remove unnecessary use restrictions and pursue regulatory reform to enable tenancy and competitiveness. 9.1 Consider removing or consolidating zoning overlays, incorporating an at a glance permitted use table and design standards, and an interactive online map with quick links to relevant regulations. [Tier 1] 9.2 Consider amending Section 18.76.20, Architectural Review, of the municipal code to enable more over the counter approvals for minor changes. [Tier 2] 9.3 Reevaluate the city-wide Retail Preservation Ordinance and consider refocusing its applicability to targeted areas of existing retail concentration while also allowing flexibility in non-street facing portions of buildings. [Tier 1] 9.4 Enable growth in Neighborhood Goods and Services along California Avenue by updating the Formula Retail Ordinance and easing use restrictions on in demand neighborhood serving uses that are currently heavily regulated or prohibited. [Tier 2] These align in part with a Council Priority outcome, specifically ER&T focus on Commercial Corridors, Downtown and California Ave. objective k, to provide direction on citywide retail zoning code changes including preservation and neighboring commercial district specific regulations and conditional use permit thresholds. However, this specific outcome is not expected to be completed in 2023. Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 6 Packet Pg. 175 of 302 2 1 4 8 10)Grow the market by enabling residential development in select areas of Downtown Palo Alto and California Avenue 10.1 Consider increasing allowable height and floor area ratio to accommodate residential in mixed use projects. [Tier 2] 10.2 Allow exclusively residential projects, including the ground floor where currently restricted in the California Avenue district. [Tier 2] 10.3 Prioritize residential development on underutilized property as identified in the 2023- 31 Housing Element. [Tier 1] These reflect a majority of new initiatives, however a re in alignment with the Council Priority, specifically ER&T focus on Commercial Corridors, Downtown and California Ave. objective f, which reflects continued exploration of new parking facilities in the University Avenue Downtown with a preference for affordable housing development. Administrative Capacity Important for implementation of the following strategy recommendations is adequate internal administrative capacity to facilitate responsibilities and to track and report progress. Recommended is formation of a scaled Office of Economic Development with adequate resources from a staffing and budget perspective to execute the strategy recommendations of this Plan. As noted in the resource impact section, some staff augmentation has been approved in the FY 2024 Adopted budget, dedicating two staff members to these efforts. Also recommended is the creation of an Interagency Economic Development Committee, led by the Office of Economic Development, and consisting of key partners and city staff who will champion, advance, and track implementation of recommended strategies herein over the next five-year period. This Committee would meet as an internal group and present progress to City Council on an annual basis. The Committee should discuss and evaluate budget and resource needs on an ongoing basis and make recommendations and requests to City Council, as needed. This structure would communicate commitment to executing the strategies herein and ultimately the health of Palo Alto’s Downtown and commercial districts including consistently reporting publicly to City Council ensures interagency accountability, reinforcing community trust in the process and means by which the envisioned outcomes are achieved. FISCAL/RESOURCE IMPACT Adoption of the Comprehensive Economic Development Strategy document itself will not impact resource needs, however, the implementation and use of these recommendations to guide future projects, focus areas, and ultimately implementation will require resources. As the City refines the scope of its economic development function through Streetsense’s work, scaling resources to align with that scope will require further resources and budgetary actions. Staff recommend that the Council allocate resources as opportunities to make progress on these recommendations arise to appropriately scale the City’s economic development function in alignment with Council’s priorities and objectives. Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 7 Packet Pg. 176 of 302 2 1 4 8 The resources allocated to Economic Development are an important consideration for ongoing work. The City has ongoing funding for the Economic Development coordinator role, a newly created support role for the coordinator role and economic development initiatives (Approved in the FY 2024 Adopted Budget) and some ongoing funding for limited consultant support (less than $25,000 annually). STAKEHOLDER ENGAGEMENT Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 8 Packet Pg. 177 of 302 2 1 4 8 Participants were asked to participate in a virtual prioritization exercise to identify any recommendations in the comprehensive report they wish to prioritize, below are the results: Recommendation(s) 1.1-1.4 involving upgrades to public and private spaces in Downtown Palo Alto, California Avenue, and neighborhood centers, supporting outdoor dining on sidewalks and within parklets, and district branding through wayfinding, signage, and art Recommendation(s) 2.1-2.2 involving the creation of and support for District Management Entities for Downtown Palo Alto and California Avenue Recommendation(s) 3.1-3.2 involving business retention, development, and attraction initiatives for local and small businesses Recommendation(s) 5.1-5.2 addressing pedestrian and cycling infrastructure Recommendation(s) 6.4 supporting and incentivizing the on-demand transit service Recommendation(s) 7.1-7.2 addressing walkability in alleyways and supporting a mural program Recommendation(s) 8.1 supporting digital signage and wayfinding associated with downtown parking Recommendation(s) 9.1-9.4 advocating for the regulatory reform to enable tenancy and competitiveness Recommendation(s) 10.1-10.3 addressing the enablement of residential development in select areas of Downtown and California Avenue ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 9 Packet Pg. 178 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S PALO ALTO ECONOMIC DEVELOPMENT STRATEGIES PHASE 3 DELIVERABLE PREPARED FOR PALO ALTO, CALIFORNIA JULY 25,2023 Downtown Palo Alto Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 10 Packet Pg. 179 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 2 v ACKNOWLEDGEMENTS STAFF Ed Shikada, City Manager Kiely Nosé, Assistant City Manager Jonathan Lait, Planning and Development Services Director Brad Eggleston, Public Works Director Philip Kamhi, Chief Transportation Official Ozzy Arce, Senior Transportation Planner Nathan Baird, Parking Manager Holly Boyd, Assistant Director, Public Works Amy French, Chief Planning Official Jodie Gerhardt, Manager of Current Planning Steve Guagliardo, Assistant to the City Manager Sylvia Star-Lack, Transportation Planning Manager 641 S ST NW WASHINGTON, DC 20001 STREETSENSE.COM @REALSTREETSENSE CITY OF PALO ALTO CITY COUNCIL Mayor Lydia Kou Vice Mayor Greer Stone Council Member Pat Burt Council Member Ed Lauing Council Member Julie Lythcott-Haims Council Member Greg Tanaka Council Member Vicki Veenker STAKEHOLDER INTERVIEWS John Aikin, Executive Director, Palo Alto Junior Museum & Zoo Shweta Bhatnagar, Director, Government Affairs, Stanford University Andrea Boca, Director of Operations, Urban Village Farmers’ Market Michael Bordoni, Director of Asset Management, Stanford University Real Estate Nancy Coupal, Coupa Café Brad Ehikian, Premier Properties Bruce Fukuji, Founding Principal, Urban Design Innovations Sheri Furman, Palo Alto Neighborhoods Annete Glanckopf, Palo Alto Neighborhoods Tiffany Griego, Managing Director of Asset Management, Stanford Research Park Karen Holman, Director, Midpeninsula Regional Open Space District and former Mayor of Palo Alto Karen Kienzle, Director, Palo Alto Art Center Jamie Jarvis, Stanford Research Park Steve Levy, Center for Continuing Study of the California Economy Ron Pardini, Executive Director, Urban Village Farmers’ Market Roxy Rapp, Founder/President, Rapp Development John Shenk, Thoits Brothers Terry Schuchat Greg St. Claire, Nola’s Chris Suarez, Sales Manager, Nobu Hotel Palo Alto Vikram Vinjay, Former Hotel General Manager, Graduate Hotels Charlie Weidanz, Palo Alto Chamber of Commerce Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 11 Packet Pg. 180 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 3 v TABLE OF CONTENTS 01 INTRODUCTION……………………………………………………. Purpose Trends and Opportunities Study Area Process 02 DIAGNOSTIC OVERVIEW…………………………………………. Retail Market Assessment Business Environment Assessment Administrative Assessment Physical Environment Assessment 03 STRATEGIES…………………………………………………………. Stakeholder Engagement, Guiding Principles and Strategy Organization At-A-Glance Strategy Recommendations Strategy Implementation and Best Practices 641 S ST NW WASHINGTON, DC 20001 STREETSENSE.COM @REALSTREETSENSE 04 08 15 Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 12 Packet Pg. 181 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 4 01 INTRODUCTION Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 13 Packet Pg. 182 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 5 PURPOSE Washington D.C.-based Streetsense and Brea, California-based HdL Companies (the Consultants) were engaged in the fall of 2022 to develop market-informed economic development strategies that will ensure Palo Alto’s on-going regional competitiveness by identifying impactful public sector interventions and investments for which there is both need and consensus for action. The strategies presented herein aim to reflect the delicate ecosystem that drives the vibrancy of the City’s Downtown and commercial centers with a focus on the retail and hospitality sectors, those significantly affected by the COVID-19 pandemic and resulting hybrid work environment. TRENDS and OPPORTUNITIES Global and national retail trends suggest major changes to traditional retail relationships due to on-line sales, changes to the shopping experience, and hybrid work. The COVID-19 pandemic has accelerated these changes resulting in: •Reduced demand for storefront space as use of the internet and home delivery increases in popularity; •Smaller format retail spaces in higher quality locations due to streamlined inventory made possible by advances in technology and more sophisticated supply chain; •Changes in how tenants value the ‘flagship’ store as social media diminishes the need for a physical presence; •Increasing resident and visitor desire for memorable experiences unable to be replicated in on-line environments; •More demand for non-traditional business hours and locations as the former nine to five work routine is no longer the norm; and •Reinforced neighborhood scale shopping and gathering for daily essential needs. Notably, brick and mortar retail of various scales and offerings is here to stay but in enduring places that guarantee a strong customer base. For Palo Alto, residents are among the most affluent and educated in the region. These discerning customers have high expectations and many local and regional options for spending their time and money, which may or may not be inside Palo Alto’s borders. Significantly, retail tenants are increasingly more selective about where they decide to locate to reach that customer base. Ultimately, Palo Alto’s Downtown and commercial centers must aim to reinvent themselves to remain competitive, and Palo Alto must strive to be supportive in an effort to maintain and grow the tax base. As such, the economic development strategies to follow will inform future resource allocation, policy and programming decisions for the City of Palo Alto and their partners to take toward achieving a balanced and competitive future. INTRODUCTION Downtown Palo Alto Source: Streetsense Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 14 Packet Pg. 183 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 6 STUDY AREA The study focuses on areas within Palo Alto where there is existing concentration of retail activity and representative of the diverse scale of retail offerings found throughout the City. The following descriptions include three categories of shopping districts according to shopping center industry classifications. REGIONAL/SUPER-REGIONAL CENTERS DOWNTOWN and STANFORD SHOPPING CENTER •Most significant tax base contributors •Face the greatest competition for visitors within the region •Must maintain "best-in-class" status to remain competitive COMMUNITY-SERVING CENTERS CALIFORNIA AVE and TOWN & COUNTRY VILLAGE •Moderate tax base impacts •Employs local promotion and marketing strategies, if any •Tend to benefit from activations that meet community interests and needs NEIGHBORHOOD-SERVING MIDTOWN and CHARLESTON SHOPPING CENTER •Minimal tax base impacts •Least affected by the COVID-19 pandemic and typically the most stable asset class •Local customer base with little need for promotion PROCESS and METHODOLOGY The strategies were informed by a multi-phased process with robust stakeholder engagement, starting with field work and a tour of the City’s commercial districts and destination assets, focus group discussions with residents, business and property owners, and hoteliers, and discussions with partners, including the Chamber of Commerce, Urban Village Farmer’s Markets, and several interdepartmental city staff. Within the initial phase, the Consultants performed background research and a trends assessment. A diagnostic followed consisting of 1) a retail market assessment of regional/local competition and supply/demand, 2) a business environment assessment including a tax analysis and hospitality/tourism assessment, 3) an administrative assessment which analyzed existing policy and zoning requirements and organizational capacity, and 4) a physical assessment of all study area commercial districts. Throughout the 12-month process, the Consultants engaged the City Council to ground truth findings and ultimately shape the final guiding principles and strategies. INTRODUCTION Source: Streetsense Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 15 Packet Pg. 184 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 7 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S Stanford Shopping Center Source: Streetsense Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 16 Packet Pg. 185 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 8 02 DIAGNOSTIC OVERVIEW Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 17 Packet Pg. 186 of 302 PALO ALT O, CA —— — — — — — — — — ECONOMIC DEVELO P M E N T STRATE GIES 9 RETAIL MARKET ASSESSMENT The economic development strategies outlined herein represent a practical roadmap for public and private interventions that advance the City’s post-pandemic recovery of retail shopping districts. The following is a summary of the diagnostic conclusions that ultimately informed the guiding principles and recommended strategies. The full diagnostic can be found in the March 13, 2023 City Council Work Session Staff Report. REGIONAL and LOCAL RETAIL COMPETITION Regionally-serving, experience-based retail centers, including malls, power centers, and walkable downtowns and lifestyle centers, are characterized by a dominant mix of good-based retail. These retail centers attract customers from a larger regional trade area and feature a cluster of full-service restaurants and entertainment.There are five regional malls of varying quality closer to San Jose and only one traditional mall to the west,Hillsdale Shopping Center. Even with steep competition, the top performing mall in the region is Stanford Shopping Center.The region is also rich with competitive Downtown retail environments, including Downtown Menlo Park, Mountain View, Redwood City, Los Altos, and Burlingame, which also compete with malls and lifestyle centers. Locally, Downtown Palo Alto not only competes with Stanford Shopping Center but also California Avenue, a more community serving retail environment, spreading retail quite thin across the City. Neighborhood serving retail centers are characterized by a dominant mix of Neighborhood Goods & Services (NG&S) tenants, often grocery-anchored. These retail centers primarily meet the need for convenience-based shopping trips competing on a geographically smaller scale. Grocery competition is strong throughout the region. Big box retailers are not permitted in Palo Alto by regulation but are concentrated along the periphery of Palo Alto, cannibalizing the retail offerings within the City. Target and Costco are particularly prevalent in the region, with nine and seven stores respectively within the studied area. RETAIL VACANCY and RENTS Vacancy among the six retail districts totals 243,000 square feet, or about 8% vacancy rate, as of year-end 2022.A majority of vacant space is concentrated in Downtown Palo Alto, accounting for about 88,000 square feet.California Avenue has the highest vacancy rate among all districts at 15%, accounting for 31,000 square feet. There is about 57,000 square feet currently vacant within Stanford Shopping Center, which equates to a low vacancy of 4%, due to the mall's large size. This vacancy is caused by smaller tenants inside the mall rather than by the loss of an anchor. Most importantly, Stanford Shopping Center captures spending that might otherwise be spent in other Palo Alto districts, especially Downtown Palo Alto, by offering attractive co-tenancy opportunities, a high-amenity environment, and retail-appropriate spaces. Retail rents in the region are high with average asking rent at $63.52 per square foot, 130% higher than the national average of $27.55 per square foot Source – REIS, Loopnet, Michael Baker, CoStar 2022 for malls and downtown environments. Stanford Shopping Center has the highest average asking rents in Palo Alto at just over $77.00. Town & Country Village and Downtown Palo Alto are comparable with average rents at between roughly $72.00 and $76.00 per square foot, respectively. DEMAND Retail demand is based on resident, employee, overnight guest, and daytime visitor spending, local and regional competition, and projected population growth. Importantly, hybrid work has reduced the demand for retail in Palo Alto by over 100,000 square feet, roughly equivalent to the amount of retail space at Midtown and Charleston Shopping Center combined.The reduction in Palo Alto's daytime population means less spending available to support retailers. That said, there is a significant development pipeline in the surrounding markets. At full build out, these projects will add 17,700 residential units, 15.8 million square feet of office/life science space, and 2,300+ hotel keys. The additional density and daytime population will improve these competitive markets, making them more compelling locations for retailers. At this time, 2032 projections suggest that Palo Alto can support approximately 2.7 million square feet, with 15% of total retail demand in Neighborhood Goods & Services (NG&S), 22% in Food & Beverage (F&B), and 63% in General Merchandise, Apparel, Furniture, and Other (GAFO). More specifically: •GAFO makes up more than half of demand, driven by Stanford Shopping Center, which consumes 80%, with a remaining 321,730 square feet of GAFO demand to be distributed among the other districts. •Neighborhood-serving retail demand is constrained by the presence of big box retailers just outside the City’s boundaries. However, given the population density and high spending levels, the market may be able to support additional neighborhood-serving retail on a small scale. •Food & Beverage is seeing healthy demand in fast casual serving student and employee populations, as well as full-service, sit-down restaurants. Source: Michael Baker; Streetsense analysis 2022 Retail demand will steadily increase; however, without intervention, demand will not reach parity with the existing retail supply over the next 10 years. Because of the 460,000 square feet of projected oversupply, vacancy will continue to rise among lower quality or poorly positioned space. OPPORTUNTIIES To better support Palo Alto’s retail districts, a more balanced ecosystem of uses should be introduced to increase daytime population, activation, duration of stay, and spending. A broader mix of uses including residential, office space for sectors requiring more in- person work, entertainment, civic, and cultural uses are recommended. Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 18 Packet Pg. 187 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 10 POST-PANDEMIC SALES TAX RECOVERY vs. SMALL BUSINESS RECOVERY Sales tax revenues are mostly back to pre-pandemic (FY 2018-19) numbers as of the end of FY 2021-22 at just 6% below. Sales tax recovery, alone, however, is not an absolute reflection of recovery and profitability. Many small,locally owned businesses, particularly restaurants, retailers, and personal service providers, were the hardest hit during the COVID-19 pandemic and are not yet back to pre-pandemic cash flow and required revenue margins.Inflation and the increasing costs of doing business, supply chain and manufacturing disruptions, rising interest rates, employment and labor shortages, the rise of online shopping, and hybrid work preferences all affect small business operations and overall recovery. Hybrid work environments are proliferating significantly in areas like Palo Alto where many small businesses previously relied upon the daytime population, primarily in the technology sector. The area encompassing the City of Palo Alto, including Stanford University and Stanford Research Park, have an average return to the office rate of 40% according to January 2023 Kastle Systems. While there is no “crystal ball”, credible experts suggest that the San Jose Metro area may not return to pre-pandemic in- office levels. The impact to small businesses and sales tax will be felt for years to come without strategic intervention. SALES TAX ANALYSIS TAKEAWAYS Although total sales tax revenues are bouncing back from the pandemic, the local economy is not fully recovered and key tax generating districts are experiencing uneven recovery, as follows: •Neighborhood Serving Centers, Charleston Shopping Center and Midtown, were the least impacted during the pandemic as spending on essential needs found in grocery stores, pharmacies, and personal services remained strong. Together, they show the highest percentage of Neighborhood Goods & Services (NG&S) relative to the total sales tax revenue in those districts at 40% and 54% respectively. Because NG&S are not big sales tax producers – a grocery store’s taxable sales, for example, are roughly 25-30% of their total sales – these centers combined only made up about 1% of the City's total sales tax revenue in FY 2021-22. •California Avenue makes up 2.2% of total sales tax in the City and is 12.8% below pre-pandemic sales in FY 2018-19 and 9% below FY 2016-17. A majority of California Avenue’s sales tax comes from Food & Beverage (F&B) at 74%, with nearly equal revenue from NG&S, General Merchandise, Apparel, Furniture & Other (GAFO), and Non-Retail establishments like business services and entertainment. This suggests an opportunity to diversify offerings to aid in sales tax recovery. •Downtown Palo Alto, which makes up 12% of total sales tax revenue in the City, was in decline prior to the pandemic and has been the slowest to recover from the pandemic with FY 2021-22 sales tax revenues 25% below pre-pandemic FY 2016-17 sales. Among the six districts, Downtown Palo Alto produces the highest value of Food & Beverage (F&B) sales tax revenue, the retail category making up 11.4% of total sales tax for the City. It also brings in the second highest GAFO sales tax at $1.1 million, second only to Stanford Shopping Center. •Town & Country Village experienced a 21% decrease in sales tax in FY 2019-20, though the shopping BUSINESS ENVIRONMENT ASSESSMENT area is recovering from the pandemic. As a community serving retail center offering a fairly equal mix of NG&S and F&B, and a small amount of GAFO, Town & Country Village sales tax make up 3% of the total sales tax revenue in Palo Alto for FY 2021-22. •Stanford Shopping Center has seen successful pandemic recovery with FY 2021-22 sales 25% above pre- pandemic FY 2016-17 sales tax revenues. It’s majority GAFO offerings contributed $5.1 million, the highest among the six districts, to the City’s 24% of total sales tax from GAFO. In total, Stanford Shopping Center makes up 25% of the City’s total sales tax revenue, mainly from retail sales. Source: HdL Companies $0 $1 $2 $3 $4 $5 $6 $7 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Mi l l i o n s Sales Tax Revenues for Fiscal Years 2016-17 to 2021-22 Charleston Shopping Center Midtown California Ave Town & Country Village Downtown Palo Alto Stanford Shopping Center RETAIL SALES and COMPETING CITIES An analysis of retail sales dollar per capita (SDPC) for FY 2021/22 was performed for Palo Alto and competing cities, including Redwood City, Mountain View, Burlingame, Menlo Park, and Los Altos. Palo Alto has the lowest NG&S SDPC, even lower than Burlingame and Los Altos who bring in less NG&S sales tax revenue compared to Palo Alto.Menlo Park has the highest SDPC in the NG&S category even though Redwood City and Mountain Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 19 Packet Pg. 188 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 11 BUSINESS ENVIRONMENT ASSESSMENT (cont.) View receive a significantly higher amount of NG&S sales tax revenue. This suggests that Palo Alto residents are likely shopping for neighborhood goods and services in competing areas, a conclusion shared by the locally- serving retail competition analysis. Palo Alto is doing better than most competing cities in bringing people to the City for F&B, and it has the highest SDPC in the GAFO category, largely due to the Stanford Shopping Center.As such, Palo Alto is likely bringing consumers from outside the area to shop for GAFO, mostly at Stanford Shopping Center, as well as non-retail sales tax producing goods and services, like auto and transportation and those from Stanford Research Park. Source: HdL Companies HOSPITALITY/TOURISM: LODGING, VISITORS, and OPPORTUNTIES Globally and domestically, business travel is returning to pre-pandemic levels despite hybrid work. Palo Alto’s lodging industry is recovering at the national pace and is currently approaching 2019 levels. Palo Alto’s Occupancy Rate is highest mid-week but slightly lower than either U.S. or California Average, overall. Palo Alto’s largest contributors to occupancy are medical, education, and business travelers who fill approximately 2,200 hotel rooms, including about 300 in Palo Alto’s two new Marriott properties. International travel recovery is slow nation-wide and will continue to impact Palo Alto more than most cities. Chinese visitors, in particular, were the largest source of international visitors to Palo Alto pre-pandemic, but China’s slow recovery lags all other major inbound traveler sources to California. Palo Alto’s largest audience sector for hospitality spending (restaurants, attractions, shopping) and tax revenue is a combination of residents and the workforce.Its next largest includes residents and workforce from neighboring Bay Area communities,such as Mountain View, Menlo Park, Sunnyvale, Redwood City,Burlingame, and Los Altos.That Source: Tourism Economics; Streetsense said, weekend occupancy rates have historically remained low as Palo Alto is not a typical, overnight tourist destination with major destination attractions. However, there are unique local destinations to celebrate and promote for both domestic and extended business travel, or “bleisure” travel. Under-the-radar local assets, like the Palo Alto Junior Museum & Zoo, the Palo Alto Art Center, Stanford Theater, and the Baylands Nature Preserve, and the Municipal Golf Course and Airport, could be comprehensively promoted to attract longer visitation in the City. Baylands Nature Preserve Source: Streetsense Palo Alto Junior Museum & Zoo Source: Streetsense Source: Streetsense, Stanford Theatre Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 20 Packet Pg. 189 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 12 REGULATORY ASSESSMENT The regulatory assessment considers, first, Palo Alto’s 2030 Comprehensive Plan as it is the primary guide for preservation and development across the City. There are three sections in the Comprehensive Plan which provide economic development directives, and which recommended strategies aim to achieve: •Business & Economics – strive to be "business friendly“; •Land Use – Updates to the municipal code that support a "diversification of land uses", including "retail that caters to daily needs of residents"; "stimulates housing near retail"; and allows for the "conversion of non-retail commercial FAR [floor area ratio] to residential FAR, where appropriate“; and •Transportation – Improve walkability and bikability by "improving connectivity between businesses, parking and transit stops", including "public art in alleyways" to encourage walking. To effectuate implementation of this policy guidance, the City has the tool of zoning. However, municipal zoning codes often evolve as a hodgepodge of regulatory solutions aimed at solving specific challenges at a given point in time. Although the code is periodically amended, it is often reactionary and not easily adaptable to swifter market changes. Palo Alto’s zoning code is representative of these characteristics. For example, rendering some sections of Palo Alto’s code outdated based on recent trends in retail and changing work patterns include: • Growth in on-line shopping – retailers are increasingly using stores for local distribution, which may be restricted as “warehousing & distribution”; •Technology advances – breweries, specialty food manufacturing and maker spaces may be restricted as “manufacturing & processing”; and •Demographic and lifestyle – wellness and medical services may be restricted as “medical office”. There are opportunities to make the code more “business friendly”. Downtown Palo Alto, California Avenue, and Neighborhood Centers, Midtown and Charleston Shopping Center, have between two and five zoning overlays of distinct regulations on top of base zone regulations, whereas Stanford Shopping Center and Town & Country Village only have one overlay. ADMINISTRATIVE ASSESSMENT The layers of regulation cause confusion among property owners, developers, and tenants when trying to understand what they are allowed to do on their property, which adds time to approval and permitting processes, increases risk, and may prevent improvements and/or occupancy entirely. It is no surprise that the commercial districts experiencing the most difficulty recovering from the pandemic and experiencing the most vacancy include Palo Alto’s two most heavily regulated environments, Downtown Palo Alto and California Avenue. The Retail Preservation Ordinance, created in 2015 to restrict ground floor retail conversions city-wide to non- retail uses, is one example of a blunt rule that was created in response to temporary market conditions. The Ordinance was written as a response to concerns that higher paying office tenants were displacing ground floor retail, undermining Palo Alto’s retail businesses, who found it hard to compete. Market conditions at the time reflected record high commercial rental rates and low office vacancy rates at around 2.8%. In contrast, Silicon Valley’s and Palo Alto’s office market today is vastly different, with nearly 18% vacancy and 14% vacancy, respectively. With office occupancy rates not expected to fully recover to post-pandemic levels in the foreseeable future, the threat of retail space conversion to office is minimal, and the Ordinance and its geographic applicability should be reevaluated, especially in districts experiencing higher vacancy than others. ORGANIZATIONAL CAPACITY and STEWARDSHIP Palo Alto is well served by arts, culture, and entertainment agencies and organizations at both the city and district level, but Palo Alto’s economic development service delivery mechanisms are limited to the City and the Palo Alto Chamber, a city-wide membership organization.Destination Palo Alto, a potentially effective website for city-wide destinations, restaurants, shops, and lodging, is defunct and no longer being updated. Because the website still exists, however, people can still visit it but will not be given accurate or up-to-date information, which in turn hurts the City’s brand and does little to uplift local, small, and new businesses. Furthermore, currently, neither Downtown Palo Alto nor California Avenue have active stewards to lead marketing, promotion, event coordination,enhanced sanitation and maintenance, or security above and beyond what the City is obligated to provide. Although suspended, there is an established charter for the Downtown Palo Alto Business Improvement District (BID). Similarly, the California Avenue Business Association/Merchants of California Avenue is defunct. Internally, economic development is addressed across many departments as it is ingrained among many divisions, but there is only one dedicated economic development staff person among all city staff. The 2024 City Budget includes one additional full-time dedicated position constituting formation of a potential future Office of Economic Development, one that will need to grow to meet the demand for economic development efforts. Internal partners will be key to executing programs and initiatives recommended by strategies presented herein, but more dedicated staff are needed to execute executive, administrative and operating functions, and program implementation both from a leadership and support role. DISTRICT BASE DISTRICT OVERLAY 1 OVERLAY 2 OVERLAY 3 OVERLAY 4 OVERLAY 5 CALIFORNIA AVE CC – Community Commercial Retail Preservation R – Retail Shopping P – Pedestrian Shopping PTOD – Cal Ave Pedestrian and Transit Oriented Cal Ave Parking Assessment District MIDTOWN & CHARLESTON SHOPPING CENTER CN – Neighborhood Commercial Retail Preservation GF – Ground Floor P – Pedestrian Shopping Special Regulations governing proximity to Residential DOWNTOWN (University Ave) CD – Downtown Commercial Retail Preservation GF – Ground Floor P – Pedestrian Shopping DOWNTOWN (Lytton) CD – Downtown Commercial Retail Preservation P – Pedestrian Shopping TOWN & COUNTRY VILLAGE CC – Community Commercial Retail Preservation STANFORD SHOPPING CENTER CC – Community Commercial Retail Preservation Hi g h l y R e g u l a t e d En v i r o n m e n t s Source: Streetsense Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 21 Packet Pg. 190 of 302 PALO ALT O, CA —— — — — — — — — — ECONOMIC DEVELO P M E N T STRATE GIES 13 PHYSICAL ASSESSMENT RE-INVESTMENT LIFECYCLE Physical attributes contributing to the look and feel of thriving commercial districts include multi-modal transportation networks that ensure equitable and safe accessibility, well-designed, pedestrian-friendly sidewalks, passageways, and gathering spaces, visibility and identification of place through thoughtful wayfinding and signage, well-maintained buildings and public spaces, and, finally, apparent overall cleanliness. The investments in such attributes over time closely correlates to a shopping environment’s growth, decline, and rebirth, or, more plainly, it’s lifecycle. A district’s lifecycle consists of an initial capital investment followed by about 10 years of sales growth to a point at which those sales mature. This general timeframe and sales growth might fluctuate with changes endured by macro-economic conditions like recessions, online shopping, growth in competition, or unexpected events like natural disasters or pandemics. At maturity, 10 to 15 years after the initial investment, another significant investment is often required to avoid decline. Of the commercial districts studied, two are in decline: Midtown, Initial Investment built in 1956, has seen only periodic upgrades over the years, and Downtown Palo Alto where the last significant streetscape improvements to University Avenue were in 1998. The City replaced gas and water lines along University Avenue in 2018/2019 and followed up with cosmetic upgrades to sidewalks, lighting, signage, landscaping, and bulb-out repair. California Avenue, on the other hand, falls in the middle of the lifecycle after receiving substantial streetscape improvements in 2014 that reimagined the street as a place people could leisurely gather and spend time. Improvements included lane reductions with widened sidewalks, an at-grade plaza space, new and consistent looking lighting, bike racks, and seating, landscaping, and art installations. Also in the middle is Charleston Shopping Center. Having single ownership allows more control of the frequency with which upgrades are employed. This shopping center does just enough for the cost- conscious neighborhood-focused tenant base it serves. Unsurprisingly, the larger, single-owner shopping environments, Stanford Shopping Center and Town & Country Village, have seen more regular and substantial upgrades to common areas, wayfinding and signage, lighting, access, art, and to the buildings themselves. In these instances, there is a return on investment required of shareholders, so there is motivation to keep these assets in a state of sales growth. The physical assessment of the study areas identified strengths, weaknesses, opportunities, and threats (SWOT) related to each of these critical elements. The key takeaways are as follows. RE-INVESTMENT LIFECYLE Source: Streetsense The SWOT analyses revealed that Stanford Shopping Center and Town & Country Village have few needed improvements, which is a reflection of single-ownership, cohesive design, and regular maintenance and upgrades. Most of the weaknesses challenging these centers involves pedestrian and bicycle connectivity within the surrounding public right-of-way. Districts that showed the most need for improvements were those with bifurcated ownership and/or lack of stewardship, lack of physical/visual cohesion, and need for public and private realm improvements to buildings, gathering spaces, and sidewalks. Districts in the most need for improvement and where city-led efforts could have the most potential impact include, Downtown Palo Alto, California Avenue, and Neighborhood Centers. A thorough breakdown of each district’s SWOT analysis can be found in the March 13, 2023 City Council Work Session Staff Report. ACCESSIBILITY and CONNECTIVITY This assessment focused on city-wide access and connectivity of transit and bike networks as these systems provide an alternative source of access to the single occupant vehicle as well as a first, last, and/or only mile link to destinations, especially for locals. There is a robust regional bus network, but there is a lack of bus redundancy in parts of the City around neighborhood serving districts. This gap is being addressed to some degree with the recently instated on-demand transit service pilot program. While there is a robust bicycle network, some critical routes connecting commercial districts with neighborhoods and other destinations lack adequate signage and lane markings. Lastly, there is no micromobility program for shared bicycles and/or scooters, which are now common and widely used services for people of vastly ranging ages and socioeconomic status. DISTRICT SWOT ANALYSES For each commercial district, strengths and weaknesses related to access and connectivity, parking, wayfinding and signage, sidewalks and street furniture, gathering spaces, and alleyways were initially assessed and evaluated further as either an opportunity, or element that could be exploited to its advantage, or a threat, an element that could be troublesome if unaddressed.Source: Streetsense Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 22 Packet Pg. 191 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 14 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S Midtown Source: Streetsense Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 23 Packet Pg. 192 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 15 03 STRATEGIES Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 24 Packet Pg. 193 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 16 STAKEHOLDER INPUT Stakeholder input was garnered through numerous in-person and virtual interviews and focus group discussions with residents, business and property owners, and partners, bi-weekly meetings with city staff, and regular engagement with City Council, including the March 13, 2023 Council Work Session. The Consultants presented findings and facilitated informative discussions at critical points of the three-part process. Stakeholder feedback focused primarily on the following topics: •Obtaining an understanding of the physical, operational, and tenant characteristics of local and regional competition; •Enhancing accessibility to, from, and within commercial districts, with a particular interest in first and last mile transportation options and parking accessibility and affordability; •Supporting lower price point neighborhood serving retail options primarily for residents; and •Addressing vacancies, tenant mix, and quality of outdoor spaces in Downtown Palo Alto and California Avenue. GUIDING PRINCIPLES As a result of the stakeholder engagement process and the diagnostic, three guiding principles were identified. Moving forward, in partnership with other agencies, organizations, and private property and business owners, city staff should engage in critical regulatory reform, physical and accessibility improvements, programming, and marketing and branding strategies to ensure Palo Alto’s commercial districts maintain competitiveness. Guiding principles include the following: 1.Reinforce each district's distinct scale and offerings by stabilizing and reinforcing Downtown as a destination, embracing California Avenue as a community and neighborhood serving place, and supporting existing Neighborhood Centers. 2.Improve accessibility by embracing walking and biking solutions to/from/within all of the City's commercial districts and addressing parking policies and systems. 3.Adopt policies that reflect changing market conditions by easing the regulatory burden for businesses, removing outdating restrictions that create hurdles to tenancy, and focus retail and retail-like uses in places where they are market-supported. Source: Streetsense * Note: While referenced throughout, an Office of Economic Development is not currently formalized as an Office. STAKEHOLDER INPUT, GUIDING PRINCIPLES, and STRATEGIES RECOMMENDED ADMINISTRATIVE CAPACITY Important for implementation of the following strategy recommendations is adequate internal administrative capacity to facilitate responsibilities and to track and report progress. Recommended is formation of a scaled Office of Economic Development with adequate resources from a staffing and budget perspective to execute the strategy recommendations of this Plan*. Also recommended is the creation of an Interagency Economic Development Committee, led by the Office of Economic Development, and consisting of key partners and city staff who will champion, advance, and track implementation of recommended strategies herein over the next five-year period. This Committee should meet at least quarterly as an internal group and present progress to City Council on an annual basis. This Committee will be responsible for consistently tracking progress of recommendation actions outlined in this Plan using prescribed methods, including data metric tracking software, Customer Relations Management (CRM), surveys, and other qualitative and quantitative means. The Committee should discuss and evaluate budget and resource needs on an on-going basis and make recommendations and requests to City Council, as needed. Establishing this administrative entity from the outset communicates commitment to executing the strategies herein and ultimately the health of Palo Alto’s Downtown and commercial districts. Further, consistently reporting publicly to City Council ensures interagency accountability, reinforcing community trust in the process and means by which the envisioned outcomes are achieved. STRATEGY ORGANIZATION The following strategies are accompanied by one or more distinct actions with associated champions, the entity recommended to lead implementation efforts, and partners and city staff who are helpful as support. Each strategy and associated actions apply to Downtown Palo Alto, California Avenue, Neighborhood Centers, or a combination thereof, and may also apply to other retail areas in the City as the studied districts are representative, not exclusive. Each recommendation is explained with a summary of why it is critical and how it aligns with existing city efforts, if applicable. Lastly, most are validated with a best practice example from around the country. The following At-A-Glance Recommendations inform prioritization with classifications: •Tier 1: In support/coordination of on-going city efforts •Tier 2: New near-medium term and low-medium budget •Tier 3: New long-term and medium-high budget Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 25 Packet Pg. 194 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 17 GUIDING PRINCIPLE 1: Reinforce each district's distinct scale and offerings by stabilizing and reinforcing Downtown as a destination, embracing California Avenue as a community and neighborhood serving place, and supporting existing Neighborhood Centers. AT-A-GLANCE STRATEGY RECOMMENDATIONS Tier 1: In support/coordination of on-going efforts 01 Upgrade highly used and visible public and private realm spaces to promote district definition and encourage activation. 1.1 Redesign University Avenue streetscape to provide wider sidewalk space for walking, gathering, and outdoor dining through a construction project to be funded by property owners. 1.2 Continue exploring the Car-Free Streets Initiative for California Avenue and Ramona Street to optimize a balanced future. 1.3 Support outdoor dining and gathering options on sidewalks and within on-street parklets with by-right allowances within two feet of storefronts and creating a consolidated street activation resource. 1.4 Invest in cohesive district branding through wayfinding, signage, public art, and gateway features within the district and along the district boundaries to better define and announce the area as a collective destination. For Neighborhood Centers, encourage public art, like murals and other community-centered installations. 02 Encourage the creation of and support District Management Entities (DMEs) for district promotion, programming, and increased maintenance. 2.1 Create a task force to explore successful regional DMEs of various scales and structures to inform an appropriate DME for Downtown Palo Alto, one that enables property and business owners to advocate and act (with resources) on their own behalf. 2.2 Formalize a DME, like the California Avenue Business Association/Merchants of California Avenue and encourage membership of a California Main Street Program. 03 Pursue business retention, development, and attraction initiatives for local and small businesses. 3.1 Create a public-private small and local business incubation and vacant storefront program connecting landlords experiencing vacancy with small and local businesses seeking brick- and-mortar space and local artists to aid in activation. 3.2 Consider allocating funds towards a shop local eGift card program to incentivize patronage of local business. 04 Promote tourism city-wide to increase longer business "bleisure" travel and grow hotel weekend occupancy rates with non-business travel. 4.1 Provide Palo Alto Chamber of Commerce the resources to promote tourism city-wide to accurately highlight and consistently update Palo Alto's destination offerings, hotels, restaurants, events, and ways to get around in an easy-to-use online platform and app. Tier 2: New near-medium term and low-medium budget Tier 3: New long-term and medium-high budget Recommendation Action By Priority GU I D I N G P R I N C I P L E 1 Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 26 Packet Pg. 195 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 18 AT-A-GLANCE STRATEGY RECOMMENDATIONS Tier 1: In support/coordination of on-going efforts 05 Fix broken pedestrian and cycling links to increase accessibility to, from, and within commercial districts. 5.1 Include more signage, wayfinding and bicycle lane markings along critical bike routes to aid safe and easy travel to/from shopping districts by biking and walking. 5.2 Include mid-block pedestrian crossings and/or raised traffic tables where desire paths lack safe crossings and deemed safe to do so. 5.3 Consider removing free rights at major intersections to aid in safe intersections for all modes of transport. 06 Invest in first and last mile transportation options that increase equitable access to, from, and within commercial districts. 6.1 Incorporate a micro-mobility (bike and/or scooter share) program that engages all shopping districts and destinations across the City. 6.2 Participate in advanced regional micro-mobility options. 07 Reinforce walkability within districts to encourage longer duration of stay and activation. 7.1 Select specific public alleyways with high visibility and at least 20 feet in width to improve for increased permeability and place-making. 08 Update and simplify parking policies, systems, and signage to ease navigation to and use of parking. 8.1 Embrace technology by incorporating digital signage for easier navigation to available parking within and outside of parking areas and tie information into an app-based parking management system to ease use and parking predictability. 6.3 Incentivize e-mobility using local resources. 6.4 Support and incentivize on-demand transit service and ridership through promotional programming within shopping districts. 7.2 Create a mural competition or program for select side and rear building facades garnering the most visibility from main streets. 7.3 Limit new curb cuts and aim to remove overly redundant curb cuts with any future redevelopment along public right of way of neighborhood centers. 8.2 Consider a small business employee access program that offers reduced employee parking fees, easily transferrable employee parking permits, and/or incentivized use of transit, micro- mobility options, and carpooling. Tier 2: New near-medium term and low-medium budget Tier 3: New long-term and medium-high budget Recommendation Action By Priority GUIDING PRINCIPLE 2: Improve accessibility by embracing walking and biking solutions to/from/within all of the City's commercial districts and addressing parking policies and systems. GU I D I N G P R I N C I P L E 2 Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 27 Packet Pg. 196 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 19 AT-A-GLANCE STRATEGY RECOMMENDATIONS Tier 1: In support/coordination of on-going efforts 09 Streamline, update and/or remove unnecessary use restrictions and pursue regulatory reform to enable tenancy and competitiveness. 9.1 Consider removing or consolidating zoning overlays, incorporating an at-a-glance permitted use table and design standards, and an interactive online map with quick links to relevant regulations. 10 Grow the market by enabling residential development in select areas of Downtown Palo Alto and California Avenue. 10.1 Consider increasing allowable height and floor area ratio (FAR) to accommodate residential in mixed-use projects.. 9.2 Consider amending Section 18.76.20, Architectural Review, of the municipal code to enable more over-the-counter approvals for minor changes. 9.3 Reevaluate the city-wide Retail Preservation Ordinance and consider refocusing its applicability to targeted areas of existing retail concentration while also allowing flexibility in non-street facing portions of buildings. 9.4 Enable growth in Neighborhood Goods and Services along California Avenue by updating the Formula Retail Ordinance and easing use restrictions on in-demand neighborhood serving uses that are currently heavily regulated or prohibited. 10.2 Allow exclusively residential projects, including the ground floor where currently restricted in the California Avenue district. 10.3 Prioritize residential development on underutilized property as identified in the 2023-31 Housing Element. Tier 2: New near-medium term and low-medium budget Tier 3: New long-term and medium-high budget Recommendation Action By Priority GUIDING PRINCIPLE 3: Adopt policies that reflect changing market conditions by easing the regulatory burden for businesses, removing outdating restrictions that create hurdles to tenancy, and focus retail and retail-like uses in places where they are market-supported. GU I D I N G P R I N C I P L E 3 Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 28 Packet Pg. 197 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 20 01 GUIDING PRINCIPLE →Reinforce each district's distinct scale and offerings by stabilizing and reinforcing Downtown as a destination, embracing California Avenue as a community and neighborhood serving place, and supporting existing Neighborhood Centers. Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 29 Packet Pg. 198 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 21 California Avenue Neighborhood Centers RECOMMENDATIONS Upgrade highly used and visible public and private realm spaces to promote district definition and encourage activation.01 ACTIONS 1.Redesign University Avenue streetscape to provide wider sidewalk space for walking, gathering, and outdoor dining through a construction project to be funded by property owners. 2.Continue exploring the Car-Free Streets Initiative for California Avenue and Ramona Street to optimize a balanced future. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS The streetscape plays a significant role as the foundation of the “main street” environment, the common infrastructure upon which many businesses and properties rely, in attracting tenants, visitors, and spending. People ultimately want to visit places that are safe, clean, designed with a comfortable human scale, and rich with texture and things to do and see. When a place can support critical activation in mass, businesses, visitors, and spending follow. University Avenue is an established retail main street forming the heart of Downtown Palo Alto. Although it saw underground infrastructure upgrades and cosmetic improvements in 2018/2019, the last major street design considerations were completed more than 25 years ago. Its physical design and condition is declining at the same time as it competes for both tenants and customers with many other high-quality local and regional options. California Avenue and Ramona Street were both closed to cars during the pandemic and are currently being evaluated through the Car-Free Streets Initiative. Both have different street designs and dimensions, level of improvements, opportunities, and challenges, but both have played a significant role in business retention. Their future design and functionality will absolutely impact the business environment. In either case, the street widths are ideal for accommodating many uses and functions from two-way multi-modal traffic, efficient on-street parking, areas for entertainment, and wide sidewalks for walking, window shopping, gathering, and outdoor dining in a tree-lined and activated built environment. The COVID-19 pandemic tested many uses of the existing right-of-way, its programmatic flexibility, and the role it can play in business retention. Now, there is an opportunity to examine what works well in balancing the many roles of these important and iconic public spaces, including their part in economic resiliency among competing main street environments. RESOURCES and HOW IT’S DONE This effort aims to support the University Avenue Streetscape Project being led by the City’s Public Works Department and the Car-Free Streets Initiative being led by the Office of Transportation. With support of the Office of Transportation, the Office of Economic Development, and Planning & Development Services, critical design improvements needed to compete with other main street environments comparable in scale can be comprehensively addressed through the on-going public processes. Strong urban design features including multi-purpose spaces with easy DISTRICTS Downtown Palo Alto CHAMPION Public Works SUPPORT Office of Economic Development Office of Transportation Planning & Development Services Property Owners Source: ennistx.com transition for small and large events and markets will support businesses and help the streets stand out from the competition. Each street will need to consider the unique needs of the district as well as their scale among each other. University Avenue, for example, will likely function differently than California Avenue and Ramona Street due to its scale and prominence as a regionally serving district. Construction funding sources, including adjacent private property owners for University Avenue, will need to be identified and considered upon final design approval. KEY PERFORMANCE INDICATORS and OUTCOMES The successful outcome will be lively streets where people and businesses easily use the public right-of-way for many purposes to the extent necessary to ensure economic prosperity. A lower vacancy rate will be partially due to successful street designs that welcome everyone and could be measured through Certificate of Occupancy tracking. BEST PRACTICE: DALLAS STREET, DOWNTOWN ENNIS, TX Upon approval of the Downtown Master Plan, which identified 33 catalyst projects for downtown revitalization, the City of Ennis secured $11 million in public and private capital to fund infrastructure and streetscape improvements along it’s main street, Dallas Street, several secondary streets, and alleyways. Included improvements were underground infrastructure upgrades (power, water, sewer, combined grease traps, and trash collection), removal of steps and curbs to create seamless transitions from storefront to street, and conversion of all on-street angled parking to parallel parking to widen sidewalk space for pedestrian maneuvering and gathering/seating, canopy street trees, landscaping, and lighting with integrated wayfinding/signage/branding, public wi-fi, and sound system. Upon implementation, the City saw an increase in applications for Façade Restoration and Historic Preservation Grants. Of the buildings that have renovated using the grants, their taxable value has more than tripled with a 5:1 private investment to grant value. Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 30 Packet Pg. 199 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 22 “We were able to revitalize Dallas Street and reclaim it as the heart of our City.” – Marty Nelson, City Manager, Ennis, Texas Source: Map data ©2013 Google, Dallas Street, Ennis, Texas – Pre-renovation Source: Dallas St. / Ennis, TX | Economic Development Corp. (ennistx.com) Source: ennistx.com Source: ennistx.com Source: ennistx.com Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 31 Packet Pg. 200 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 23 California Avenue Neighborhood Centers RECOMMENDATIONS Upgrade highly used and visible public and private realm spaces to promote district definition and encourage activation.01 ACTIONS 3.Support outdoor dining and gathering options on sidewalks and within on-street parklets by: a.Allowing as-of-right merchandise display, benches, bistro tables, and signage within two feet of any storefront within the store’s frontage. b.Creating a consolidated, user-friendly resource that includes existing guidelines and standards for street activation, and the parklet standards, once complete. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS and HOW IT’S DONE Street activation and vibrancy relies on business spill over into the public right-of- way. Unique signage, merchandise displays, seating, artwork, and potted plants all catch the attention of the passersby and propel their interest from one unique environment to another within the district. Downtown Palo Alto and California Avenue already perform well with food and beverage, from a tax revenue perspective, but these and other small businesses could use the associated time and money for other things burdening their on-going success, like the increasing costs of doing business and employee retention. Making it easier for businesses to activate the street aids in their individual economic resiliency and the entire district’s. The public sector’s role should, therefore, be to guide safe, easy, and effective private sector activation of the public right-of-way. One way is to allow easy to move furniture, like bistro tables, merchandise displays, and A-frame signs by-right within two feet of the storefront for the extent of the establishment’s frontage. Most, if not all, sidewalks in Downtown Palo Alto and California Avenue are large enough to accommodate this type of free encroachment without compromising adequately clear paths for walking and ADA compliance. The business would be responsible for bringing the items indoors after hours. Further, consolidating the street activation guidelines and standards and the soon to be completed parklet standards into one user-friendly resource will make it much easier for tenants and owners to know what they are permitted to do in the public right-of-way, with or without a permit, quickly and easily without fear of citation. With heightened education and awareness, code enforcements’ need to cite is lessened, opening up resources for other priorities. KEY PERFORMANCE INDICATORS and OUTCOMES With more by-right areas for activation and a more streamlined resource of activation standards and guidelines, more businesses should be seen proactively engaging the street, more people should be frequenting establishments with activation, and citations for incompliance should decrease over time. RESOURCES The City’s Public Works Department should lead this effort with support of the Office of Transportation, Planning & Development Services, and the Office of Economic Development, as needed. Upon Council approval, District Management Entities should aid in educating property and business owners of the resource. DISTRICTS Downtown Palo Alto CHAMPION Public Works SUPPORT Office of Economic Development Office of Transportation Planning & Development Services District Management Entities Source: Map data ©2022 Google, Greenwich Ave., New York, NY Source: Open Storefronts (nyc.gov) BEST PRACTICE: NEW YORK CITY OPEN STOREFRONTS PROGRAM New York City’s Open Storefronts Program includes easy to understand diagrams identifying areas for by-right activation along with straightforward siting criteria that ensures clear walking paths and unobstructed public facilities like fire hydrants. It also simply describes eligible uses, including retail trade, food service, repair stores, personal care services, and dry-cleaning and laundry services.According to a 2022 study prepared by the NYC Departments of Transportation and Finance and Bloomberg Associates, restaurants and bars along open streets, averaged sales 19% above their pre-pandemic baseline while near-by control corridors were 29% below. Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 32 Packet Pg. 201 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 24 California Avenue Neighborhood Centers RECOMMENDATIONS Upgrade highly used and visible public and private realm spaces to promote district definition and encourage activation.01 ACTIONS 4.Invest in cohesive district branding through wayfinding, signage, public art, and gateway features within the district and along the district boundaries to better define and announce the area as a collective destination. For Neighborhood Centers, encourage public art, like murals and other community-centered installations. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS District identity and cohesion in the built environment is essential to the active promotion of a group or collection of uses, events, spaces, and buildings. A unified identity can be expressed consistently in the physical realm through district defining features like gateway features at major entrances and exits of the district, public art, wayfinding, and signage. Gateway features and public art express the unique, local culture while district branding incorporated into wayfinding, signage, website, and apps offer quickly recognizable identification that reassures visitors and tenants of where they are, what to expect, and overall customer awareness. Outside of the thresholds created by the train stations in both Downtown Palo Alto and California Avenue, there are few gateway features, announcement of arrival or exit from the districts, or cohesive and consistent district branding. There are several highly visible blank walls in California Avenue and Downtown Palo Alto that could host large, district defining murals. As a neighborhood center, Midtown could benefit greatly from more district definition and announcement at either end and along the Middlefield right-of-way. There is potential to incorporate public art and cohesive branding on banners or signage on light poles and bus shelters, for example. Blank walls in neighborhood centers are also wonderful opportunities to incorporate locally sourced murals that tie back to the surrounding neighborhoods. RESOURCES and HOW IT’S DONE The best-case scenario for Downtown Palo Alto and California Avenue is for the District Management Entities (DMEs) to champion such efforts (reference Recommendation 2). They would raise funds to hire a branding consultant to develop a branding campaign to include physical and digital products. The DMEs should work closely with the City’s Public Works Department to identify locations in the public right-of-way appropriate for installations. The DMEs would also be the best stewards to champion a public art program or competition in partnership with Palo Alto Arts & Culture Organizations and independent local artists to advance local artists’ work in prominent public areas and select, volunteer private properties. Funding could be garnered through the California Arts Council in partnership with Palo Alto Arts & Cultural Organizations. Public art within the California Avenue District should consider the California Avenue Public Art Plan. In the event the DMEs are unable to form or organize in a timely manner, the Office of Economic Development (OED) could serve as a temporary steward for each district to facilitate both a branding campaign and a public art program or DISTRICTS Downtown Palo Alto Source: Center City District | Signs & Banners (centercityphila.org) competition on public and private property. The OED would partner with the Public Works Division, Palo Alto Arts & Culture Organizations, and property owners to identify ideal public and private property locations and secure funding. BEST PRACTICE: CENTER CITY DISTRICT (CCD) PHILADELPHIA, PA WAYFINDING and BRANDING The CCD, a business improvement district, the Central Philadelphia Development Corporation (CPDC), and the Center City District Foundation (CCDF) work together to enhance downtown Philadelphia’s economic competitiveness through a number of public improvement projects and maintenance, including colorful, highly visible, and easily recognizable wayfinding and signage provided on every corner and park located within the CCD to orient and direct residents and visitors. CHAMPION District Management Entities or Public Works & Office of Economic Development SUPPORT Palo Alto Arts & Culture Organizations Property Owners Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 33 Packet Pg. 202 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 25 salary for a coordinator to get the Association up and running using the Main Street Program as a framework. BEST PRACTICE: DOWTOWN SAN LUIS OBISPO, CA Downtown San Luis Obispo is managed by Downtown SLO, a non-profit, consisting of fee-paying businesses within a defined Business Improvement Area, voluntary members, other organizations, residents, and visitors. They pride themselves as the advocate of Downtown offering events, like Concerts in the Plaza and farmer’s markets, as well as enhanced maintenance, beautification and public art programs, tree protection, and homeless outreach. They have a clean and easy to navigate website with easily recognizable branding which serves as a platform for district promotion. They also publish an annual report implying a level of tracking and analysis expertise and operational capacity. They are an accredited California Main Street which allows access to a network of additional resources, programs, and regional partnerships. California Avenue Neighborhood Centers RECOMMENDATIONS Encourage the creation of and support District Management Entities (DMEs) for district promotion, programming, and increased maintenance.02 ACTIONS 1.Create a task force to explore successful regional DMEs of various scales and structures to inform an appropriate DME for Downtown Palo Alto, one that enables property and business owners to advocate and act (with resources) on their own behalf. 2.Formalize a DME, like the California Avenue Business Association/Merchants of California Avenue and encourage membership of a California Main Street Program. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS District Management Entities (DMEs) are organized groups of merchants and /or property owners that collectively and autonomously decide how to best promote, program, and maintain their district beyond base city services. Importantly, publicly sanctioned DMEs like Business Improvement Districts (BIDs) collect assessments from stakeholders that provide sustainable annual resources for things like events, marketing, promotion, enhanced cleaning and safety, etc. Their non-profit status also enables fundraising through philanthropic and corporate grants. In some ways, these organizations are akin to a Shopping Center or Mall Management Company funded through a Common Area Maintenance (CAM) charge that is often folded into a businesses lease. Downtown currently has a BID that was formed in 2004 with a budget of approximately $200k, but the organization has been suspended since 2021 and a number of stakeholders have mixed feelings about reinstating it. Several competing Downtowns in the region are managed by DMEs, whether through a BID or other non-profit association, such as a State-sanctioned “Main Street” program. To remain competitive,Downtown Palo Alto has a particular need to increase maintenance of the public realm beyond what the City provides, including, but not limited to, sidewalk power washing, trash pick-up, and removal of broken or unused news stands. It needs regular programming, events, large and small, and promotion to draw crowds and reestablish its footing as a regional destination. California Avenue could also benefit from a DME for district promotion and regular programming beyond what is currently provided on a neighborhood scale. RESOURCES and HOW IT’S DONE An exploratory task force consisting of downtown property owners, merchants, Palo Alto Chamber of Commerce staff, and city staff should be created to inform the right approach for a DME in Downtown Palo Alto. This should begin by visiting other successful BIDs, including Redwood City and San Luis Obispo. Although currently suspended, Downtown Palo Alto’s BID exists and could be reinstated if it were determined as a recommended path forward by the task force. There is a defunct California Avenue Business Association/Merchants of California Avenue that could be reinvigorated and supported by becoming a member of a California Main Street Program which offers training, access to resources, partnership opportunities, and best practices. The City could provide a three-year grant that decreases in amount every year to help the Association hire and provide a DISTRICTS Downtown Palo Alto CHAMPION Office of Economic Development California Avenue Merchant’s Association SUPPORT Downtown property owners Palo Alto Chamber of Commerce Notably, fees contributed by property owners account for only 19% of the BID organization's $1.2 million budget. The assessment fees are augmented by earned income and contributions enabled by the organization's non-profit status. One example of earned income includes a 17-day roller rink installation that raised $34k in sponsorships and sold 1,524 tickets. The benefits of well-run BIDs include leveraged funds significantly beyond that collected by the BID assessment. Downtown San Luis Obispo Annual Income (2022) Source: Downtown SLO Annual Report, 2021-2022 Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 34 Packet Pg. 203 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 26 California Avenue Neighborhood Centers RECOMMENDATIONS 03 ACTIONS 1.Create a public-private small and local business incubation and vacant storefront program connecting landlords experiencing vacancy with small and local businesses seeking brick-and- mortar space and local artists to aid in activation. 2.Consider allocating funds towards a shop local eGift card program to incentivize patronage of local business. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS Retail vacancy across the six districts studied is 8%, with Downtown Palo Alto and California Avenue experiencing the highest vacancies, 10% and 15% respectively. Vacant storefronts erode market confidence, especially if the storefronts appear inactive for extended periods of time. It then becomes difficult for the area to attract quality tenants at asking rents, which may be justifiably difficult for landlords to lower considering increasing costs, interest rates and loan and/or investor obligations unique to their property. The Consultant advises against a vacancy tax. The reasons behind vacancies are often numerous and multi-faceted and often related to conditions entirely beyond the control of a property owner. Additionally, in cities where such taxes have been levied, hardship exemptions are legally required and are not uncommon, creating yet another administrative hurdle for owners who may already be struggling. Furthermore, the tax itself may simply become a new cost of doing business in Palo Alto, one that does not meaningfully change behavior or have an impact on the overall vacancy rate. Alternatively, there are opportunities to address vacancies through strategies that are more “carrot” than “stick” – eliminating hurdles to market entry and supporting both temporary and permanent business activity in vacant spaces – which requires a partnership, rather than adversarial role, with landlords. RESOURCES and HOW IT’S DONE One way to encourage tenancy of vacant retail spaces while also supporting, growing, and retaining local businesses is to develop a public-private small and local business incubation and vacant storefront program to connect property owners experiencing vacancy with small businesses looking to test or expand their business in a brick-and-mortar location in a temporary (three to six months) or long-term format. This program could be developed by the Office of Economic Development in partnership with District Management Entities (DMEs) and/or district property owners, Palo Alto Chamber of Commerce, and the Urban Village Farmer’s Market Association (UVFM), a Bay Area non-profit and ambassador for local farmers and small businesses operating 10 regional farmer’s markets. The UVFM has organically provided incubation space for small and local businesses where their products are market tested. The farmer’s markets in the California Avenue district organized, curated, and run by the UVFM are well attended, and tent DISTRICTS Downtown Palo Alto CHAMPIONS Office of Economic Development (Action 1) Palo Alto Chamber of Commerce (Action 2) SUPPORT District Management Entities and/or Property Owners Urban Village Farmer’s Market Association (UVFM) Palo Alto Arts & Culture Organizations space is in high demand. Often successful farmer’s market vendors launch from their humble tent environment to a brick-and-mortar space located somewhere in the region. There is opportunity here to aid in retaining those market tested businesses within Palo Alto and even the districts they derived. To aid in making the connection between property owners and businesses, the program will need to engage the UVFM and also reach independent entrepreneurs with services critical to ensuring business success and prolonged tenancy. The program will need to offer financial and technical assistance addressing leases, insurance, permitting, interior finish out, exterior improvements, including store front design and installation, scalable business plan development, and assistance navigating licensure. Processing applications, managing the program, facilitating connections, and educating all parties involved will need to be thoughtfully assigned among all supporting partners. The program could also consider storefront activation between leases through art displays by local artist either through a grant or competition in partnership with Palo Alto Arts & Culture Organizations (reference Recommendation 1.4). It could also encourage temporary installation of district branding, once complete (reference Recommendation 1.4), in windows to market the district. This is particularly important in Downtown where regional competition for destination experiences is high. Lastly, to support sales through spending while the daytime population is restored (reference Recommendations 9 and 10), it would be advantageous to follow the small and local business incubation and vacant storefront program with a shop local campaign to entice support sales. The Palo Alto Chamber of Commerce could champion development and execution of a shop local eGift card program to incentivize patronage of local businesses at no cost to businesses. The City of Upland, CA (population 79K) saw over $1.6 million in card redemptions at local participating businesses, and the City of Angels Camp (population is 3,836) brought in over $56K with an eGift program. Funding for program development, likely using an established eGift card service, and execution would come from the City through a budget approval process. KEY PERFORMANCE INDICATORS and OUTCOMES These programs should result in fewer vacancies, more consistent street activation, increased tax revenue, and more local and small businesses in Palo Alto’s retail districts. All can be evaluated through tenant and property owner surveys, foot traffic tracking via third party programs (i.e. Placer.ai), and Certificate of Occupancy tracking. Pursue business retention, development, and attraction initiatives for local and small businesses. Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 35 Packet Pg. 204 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 27 Source: Cult-favorite pastry purveyor finally opens first Oakland bakery (sfgate.com) Source: Urban Village Farmer’s Market – Starter Bakery Source: Vacant to Vibrant (vibrantsf.org) BEST PRACTICE: VACANT TO VIBRANT PROGRAM, SAN FRANCISCO, CA Vacant to Vibrant, is a city-funded program of SF New Deal and in partnership with the San Francisco Office of Economic and Workforce Development. It aims to bring economic recovery to downtown San Francisco through pop-up activation of vacant spaces with small local businesses and art. SF New Deal will provide activators with grants ranging from $3,000 to $8,000 and technical, marketing, permitting, compliance, and operations assistance. Activators also receive three months of free rent through the program. Participating property owners will be provided up to $5,000 from SF New Deal to cover tenant improvements and utility expenses, marketing material, permitting assistance, and one primary tenant. BEST PRACTICE: UVFM LOCAL BUSINESS RETENTION, STARTER BAKERY, OAKLAND, CA Starter Bakery launched in 2010 from UVFM’s Temescal Farmer’s Market in Oakland. With UVFM support, the business successfully expanded in 2023 into a brick-and-mortar space within one mile of the market in which it formed. Source: Map data ©2022 Google, Childish, Downtown Pops! Recipient BEST PRACTICE: DOWNTOWN POPS!, SANTA CRUZ, CA As a pilot program through the Santa Cruz Economic Development Department, Downtown Pops! aims to lower the barrier to entry for businesses looking to open in brick-and- mortar locations and reduce risk for property owners to lease to new tenants during this time of economic recovery. The program involves the City entering a master lease with a commercial property owner experiencing vacancy, provides a guaranteed minimum rent, and sub-leases the space temporarily, up to six months, to a business with a lease term set at 5% of monthly sales. Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 36 Packet Pg. 205 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 28 California Avenue Neighborhood Centers RECOMMENDATIONS Promote tourism city-wide to increase longer business "bleisure" travel and grow hotel weekend occupancy rates with non-business travel. 04 ACTIONS 1.Provide Palo Alto Chamber of Commerce the resources to promote tourism city-wide to accurately highlight and consistently update Palo Alto's destination offerings, hotels, restaurants, events, and ways to get around in an easy-to-use online platform and app. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS Palo Alto’s largest contributor to hotel occupancy are medical, education and business travelers who fill approximately 2,200 hotel rooms mostly on the weekdays with Tuesday night occupancy leading the week at 80.4%. Friday, Saturday and Sunday occupancy dips to between 60-70%, suggesting opportunities to encourage business travelers to stay longer and support higher weekend occupancy rates with non-business travelers, including regional residents and day- trippers. Growing “bleisure” and non-business traveler spending will require recasting Palo Alto’s offerings and exploring opportunities to improve the marketing of restaurants, destinations, like the Palo Alto Junior Museum & Zoo, the Palo Alto Art Center, Stanford Theater, and the Baylands Nature Preserve, the Municipal Golf Course and Airport, the Foster Museum, the Museum of American Heritage, and more, and events, including those associated with Stanford University (graduation, sports events, etc.). When paired together, Palo Alto’s offerings could warrant more than a weekend stay. However, the current Destination Management Organization (DMO), Destination Palo Alto, is defunct and no longer updating their website. Therefore, it’s recommended the Destination Palo Alto website be removed and replaced or updated to promote tourism city-wide. RESOURCES and HOW IT’S DONE The Office of Economic Development should aid in securing funding for the Palo Alto Chamber of Commerce to hire a consultant to create a user-friendly website and app to promote tourism city-wide that accurately highlights Palo Alto's destination assets, hotels, restaurants, events, and travel options (including micromobility programs referenced in Recommendation 6) with a business directory, itineraries, photography, and business owner interviews. The website should be managed and consistently updated by the Chamber. BEST PRACTICE: VISIT LOS GATOS, LOS GATOS, CA Visit Los Gatos is an elegantly simple, yet informative website created in partnership with the Los Gatos Chamber of Commerce connecting residents and visitors to the City (population just under 34,000) with restaurants, bars, shopping, hotels, events, and places to visit. What’s more is it provides curated itineraries that could fill a day, a weekend, or longer for people of many interests, ages, and abilities. It highlights all that should and can be celebrated and visited in the City, big and small, from winery tours to city parks, all with a simple compilation that truly keeps the many different users in mind. DISTRICTS Downtown Palo Alto CHAMPION Palo Alto Chamber of Commerce SUPPORT Office of Economic Development Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 37 Packet Pg. 206 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 29 02 GUIDING PRINCIPLE →Improve accessibility by embracing walking and biking solutions to/from/within all of the City's commercial districts and addressing parking policies and systems. Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 38 Packet Pg. 207 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 30 California Avenue Neighborhood Centers RECOMMENDATIONS Fix broken pedestrian and cycling links to increase accessibility to, from, and within commercial districts.05 ACTIONS 1.Include more signage, wayfinding and bicycle lane markings along critical bike routes to aid safe and easy travel to/from shopping districts by biking and walking. 2.Include mid-block pedestrian crossings and/or raised traffic tables where desire paths lack safe crossings and deemed safe to do so. 3.Consider removing free rights at major intersections to aid in safe intersections for all modes of transport. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS Equitable accessibility by many modes of travel to and from Palo Alto’s retail districts is critical to capturing local and regional spending. Complete streets, those that adequately and safely accommodate many modes of travel, often see positive economic returns. Brooklyn’s Vanderbilt Avenue, for example, saw a doubling in retail sales in the three years following installation of bicycle lanes and a tree-lined median, which significantly outperformed borough-wide and city-wide trends, according to the New York City Department of Transportation’s 2018 study on the Economic Benefits of Sustainable Streets. Palo Alto’s bicycle and pedestrian network plays a crucial role within the overall transportation network in business and district success through its offering as a reliable alternative in what is a relatively well-knit environment. However, several areas within the pedestrian and bicycle network are challenged by a lack of informative and directional signage, markings, and safe crossings. While the bicycle network is rich with paths that parallel busy streets, some abruptly stop with little or no signage leading the user to the next protected path. Other times, markings have faded, or routes are overwhelmed with other infrastructure like on-street parking and bus lanes making it confusing and potentially unsafe all around. Considerations for highly visible and separated bicycle lanes/paths as well as appropriately placed and safe mid-block pedestrian crossings where people intuitively want to cross along highly traversed roadways are also recommended to be studied and implemented where deemed safe to do so. In some instances, it may be advantageous to consider intersection modifications like the removal free-right turns to increase pedestrian and bicycle safety and desirability as a means of travel. RESOURCES and HOW IT’S DONE The Office of Transportation should champion this effort in coordination with the pending Bicycle and Pedestrian Transportation Plan Update, which will involve a robust study of the existing network to comprehensively identify all gaps across the system and viable and timely solutions. The Plan will invite stakeholders to be a part of the project prioritization process, which will include community-validated criteria such as safety, connectivity, and level of pedestrian or bicyclist stress. Regular Plan updates would benefit from the input of the recommended Interagency Economic Development Committee led by the Office of Economic Development. KEY PERFORMANCE INDICATORS and OUTCOMES More options for more and different people to access goods, services, and events at DISTRICTS Downtown Palo Alto CHAMPION Office of Transportation SUPPORT Public Works Office of Economic Development Palo Alto’s retail districts should result in more visitation and patronage, overall. A survey performed a year from implementation of improvements could be undertaken by either the Office of Transportation or the Office of Economic Development and shared through the recommended Interagency Development Committee and disseminated publicly with other performance outcome measures. BEST PRACTICE: RECLAIMED FREE RIGHT TURNS, SAN DIEGO, CA Per San Diego’s Vision Zero goals, shorter walking distances at intersections were implemented through tighter turn radii and reclaimed free right turns, reducing pedestrian crossing distances by 65% at some intersections. “In 2019, there was a modest decrease for combined serious injuries and fatalities compared to 2018, and 2020 showed a further decline, compared to 2019.” (San Diego Vision Zero). Source: Map data ©2022 Google, Reclaimed Free Right Turn, San Diego, CA Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 39 Packet Pg. 208 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 31 California Avenue Neighborhood Centers RECOMMENDATIONS Invest in first and last mile transportation options that increase equitable access to, from, and within commercial districts.06 ACTIONS 1.Incorporate a micro-mobility (bike and/or scooter share) program that engages all shopping districts and destinations across the City. 2.Participate in advanced regional micro-mobility options. 3.Incentivize e-mobility using local resources. 4.Support and incentivize on-demand transit service and ridership through promotional programming within shopping districts. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS Increasingly, shared mobility and low-speed vehicles (e-scooters and bikes) have grown in popularity as a form of first and last-mile transportation due to their convenience and ease of use, as well as for their ability to help cities meet sustainability and equity goals without significant infrastructure investment. A 2022 study published by Emory University entitled “Wheels to Meals: Measuring Impact of Micromobility on Restaurant Demand” stated that 98 U.S. cities covering 2.2 million individuals and 391 companies found that the introduction of e-scooters “significantly impacts restaurant spending, increasing spending by approximately 5.2% for e-scooter users, driving incremental spending of at least $1.13 million annually across all cities that allowed e-scooters to operate over summer 2018.” This growth in local spending – e-scooter users are predominantly local – has meaningful implications for the local tax base. The impacts of improved non-automobile access are not limited to shared mobility and low-speed vehicles. Bike lanes have been found to boost local sales in many cities, including San Francisco, Los Angeles and Minneapolis. E-bike and scooter usage in Palo Alto is increasing, according to the City’s Pedestrian and Bike Committee, which has also prioritized education, noting that “e-bike use has outpaced education efforts” (4/4/2023). RESOURCES and HOW IT’S DONE The Office of Transportation should champion this effort and build upon the shared mobility transportation policies reflected in the City’s 2030 Comprehensive Plan aimed at providing “facilities that encourage and support biking and walking” as well as those embedded within numerous recommendations of the Palo Alto Pedestrian and Bicycle Advisory Committee, such as bike parking at Charleston Shopping Center, which was recently installed. Additionally, this effort advances the City’s 2022 Climate and Sustainability Plan guiding policy to increase mode share to 40% by 2030. Pending Federal and State tax credit and incentives for e-bikes promise to further lower the cost of entry to the e-bike market by $1,500 or more. Some cities are already embracing subsidies for e-bikes, including Washington, DC, Berkely, California, and Denver, Colorado, citing studies that have shown that a 10% shift from cars to bikes results in a 40% reduction in traffic. Additionally, the California Air Resources Board (CARB) is developing an e-bike DISTRICTS Downtown Palo Alto CHAMPION Office of Transportation SUPPORT Office of Economic Development Palo Alto Chamber of Commerce District Management Entities incentive program that will launch in late 2023 for e-bike vouchers for California residents, yet another reason to support infrastructure for safe riding. Lastly, the Office of Transportation should work with District Management Entities, property and business owners, and the Palo Alto Chamber of Commerce to promote all forms of shared mobility programs within each commercial district. KEY PERFORMANCE INDICATORS and OUTCOMES Shared mobility operators can track usage and impacts, and the City can track sales tax as well as business owner satisfaction through survey tools. BEST PRACTICE: REDWOOD CITY, CA MICROMOBILITY PROGRAM In October 2021 Redwood City adopted a new ordinance to allow a shared micromobility operation. The shared mobility company, Bird, currently services Redwood City and offers a Community Pricing Program which offers a 50% discount to low-income riders. Early data suggests strong usage within downtown – most rides start in downtown and end in downtown. The highest usage is between 7 to 10 pm – evening hours – which correlate to popular dining out hours. Scooter parking areas are defined, and scooters are restricted from side walks. By all accounts, the program has been heralded as a success. City’s such as Dallas, Texas addressed rental scooter and bike “littering” by providing a 311 service request category allowing members of the public to report issues, defined parking corrals, and established pick-up agreements with operators. Source: walkingredwoodcity.com Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 40 Packet Pg. 209 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 32 California Avenue Neighborhood Centers RECOMMENDATIONS Reinforce walkability within districts to encourage longer duration of stay and activation.07 ACTIONS 1.Select specific public alleyways with high visibility and at least 20 feet in width to improve for increased permeability and place-making. 2.Create a mural competition or program for select side and rear building facades garnering the most visibility from main streets. 3.Limit new curb cuts and aim to remove overly redundant curb cuts with any future redevelopment along public right of way of neighborhood centers. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS Downtowns and retail centers rely on the thousands of pedestrians that walk from establishment to establishment for business success. To accommodate prolonged visitation and patronage, safe and comfortable, human-scale pedestrian infrastructure is critical to get right, especially in places built at a scale prioritizing the vehicle. Two areas pedestrians could be better accommodated include select alleyways in Downtown Palo Alto and the California Avenue district and along primary roads in Neighborhood Centers. For Downtowns and similar main street environments, tree-lined and amenitized streets provide the primary pedestrian framework. However, in Downtown Palo Alto and the California Avenue district, there is a secondary network of alleyways that not only serve their utilitarian duties like trash pick-up, but they also provide a quicker route for pedestrians to parking and/or access to quaint areas to take a break from a shift and/or gather in a small, less busy outdoor environment. Alleyways, therefore, present a unique opportunity to increase safe walkability and placemaking while aiding in destination setting. Pedestrians experiencing Neighborhood Centers in Palo Alto are more challenged than in Downtown or California Avenue in that the areas’ design prioritizes the vehicle. The Midtown district along Middlefield, for example, includes at least one curb cut off of Middlefield Road for nearly every commercial building. This creates additional points at which pedestrians and vehicles must interact increasing the potential for a collision. For some, an environment like this is too hostile to consider walking in and potentially limit their intended duration of stay in the district. Therefore, it’s recommended that new curb cuts off of primary roads be limited and/or consolidated with any future redevelopment. RESOURCES and HOW IT’S DONE With future development projects of neighborhood centers, the Planning & Development Services and the Office of Transportation should review and recommend from a united point of view and work with applicants in the approval process to limit and/or consolidate curb cuts to the extent possible. The Office of Transportation, with the aid of the Public Works Department, should lead an effort that first identifies appropriate public alleyways capable of accommodating increased pedestrian usage, as places to gather and/or passthrough, as guided by Comprehensive Plan Policy T-1.21. In either instance, trash will need DISTRICTS Downtown Palo Alto CHAMPION Office of Transportation (Actions 1 & 3) Office of Economic Development (Action 2) Source: Map data ©2022 Google, Dansville, Livingston County, NY to be properly stored, preferably indoors, before pick-up, and standards ensuring safe access and lighting should be addressed in coordination with Public Works and Planning & Development Services. Considering a mural competition or program for alleyway activation could span across several retail districts, including Neighborhood Centers and others, it’s recommended the Office of Economic Development champion Action 2. District Management Entities (DMEs), property owners, and Palo Alto Arts & Culture Organizations could support the effort by connecting artists with participating properties to paint murals on select facades. Similar to Recommendation 1.4, funding could be garnered through the California Arts Council in partnership with Palo Alto Arts & Cultural Organizations. Murals within the California Avenue District should consider the California Avenue Public Art Plan. BEST PRACTICE: LivCo WALLS, LIVINGSTON COUNTY, NY The Livingston County Office of Economic Development created a county-wide mural program based on recommendations from their Downtown 2.0 Plan, prepared SUPPORT Public Works Planning & Development Services District Management Entities Palo Alto Arts & Culture Organizations by Streetsense. The program welcomed nine international artists to paint large scale murals in each of Livingston County’s nine villages on the sides and rear walls of existing buildings along side streets and alleyways with the goal of activating underutilized spaces and drawing visitors. In 2022, the County hosted a county-wide mural festival that brought thousands of visitors. Visit Livingston County (LivCo) - the County’s official tourism agency with a mission to drive the County’s economic growth through travel – highlights the murals, the artist, and their stories as destination attractions on their Visit Livingston website. Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 41 Packet Pg. 210 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 33 Source: Streetsense, Geneseo, Livingston County, NY Source: LivCo Walls (visitlivco.com), Caledonia, Livingston County, NY Source: LivCo Walls (visitlivco.com), Avon, Livingston County, NY Source: Streetsense, Lima, Livingston County, NY Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 42 Packet Pg. 211 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 34 California Avenue Neighborhood Centers RECOMMENDATIONS Update and simplify parking policies, systems, and signage to ease navigation to and use of parking.08 ACTIONS ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS During the diagnostic exercise, downtown business owners made clear their frustration with the current parking system, which makes it difficult to attract and retain low-wage, often part-time workers who do not live in Palo Alto and must travel by car to work. Because the current public transportation system is not conducive to typical later evening hours for those in the Food & Beverage industries – the anchor industry for both Downtown Palo Alto and California Avenue – it is particularly difficult for businesses that are driving the bulk of economic activity in both of those districts. Additionally, the current parking system does not allow part- time workers to share parking permits, which would help distribute the costs and benefits among more downtown employees, without increasing the number of vehicles in downtown at any given time. From the consumer perspective, the perception of limited parking may exist, but data suggested that parking remains available -- utilization in existing downtown lots following the pandemic remains below 50%. Additionally, the most recent Palo Alto Community Survey found that 60% of respondents rated "Ease of Parking"to be either good (46%) or excellent (14%), suggesting that major changes to parking, such as the construction of new lots, are not necessary to meet consumer needs at this time. However, a comparison with best-in-class regional retail environments suggests opportunities to improve the parking experience on the margins, such as digital signage that helps drivers navigate quickly and seamlessly to available parking spaces within Downtown. At this time, digital countdown signage efforts are underway at individual lots and structures, but it may be worth exploring countdown signs at key gateways as well. RESOURCES and HOW IT’S DONE The Office of Transportation, with the support of the Public Works Department, should explore opportunities in public right-of-way for digital parking space availability and directional signage that coordinates with the digital signage effort currently underway for individual lots. For the small business employee access program, close coordination with business owners will be critical to ensure that any solution meet the needs of employees. The Office of Transportation could engage businesses with the help of the District Management Entity and the Palo Alto Transportation Management Association that already works to provide transportation options to small business employees in Downtown and California Avenue. The Office of Economic Development could support the effort by facilitating internal discussions through the recommended Interagency Economic Development Committee. DISTRICTS Downtown Palo Alto CHAMPION Office of Transportation SUPPORT Public Works District Management Entities/ Business Owners Office of Economic Development 1.Embrace technology by incorporating digital signage for easier navigation to available parking within and outside of parking areas and tie information into an app-based parking management system to ease use and parking predictability. 2.Consider a small business employee access program that offers reduced employee parking fees, easily transferrable employee parking permits, and/or incentivized use of transit, micro- mobility options, and carpooling. KEY PERFORMANCE INDICATORS and OUTCOMES Such efforts should result in improved employee retention and business satisfaction, which could be measured by an annual survey, akin to City of Palo Alto Community Survey. BEST PRACTICE: LOW-WAGE EMPLOYEE PARKING PERMIT, SANTA ROSA, CA Helping low-wage employees address their parking needs is a focus of a number of city parking policies. The City of Santa Rosa, CA has created a “Low Wage Employee Parking Permit” which offers service industry employees reduced rate parking passes for two of the City's municipal lots. Eligible employees must submit verification letters and provide a copy of recent pay stubs. Verification of eligibility is required every six months. Employees can be reimbursed these fees by participating businesses. BEST PRACTICE: DIGITAL PARKING SIGANGE, SANTANA ROW, SAN JOSE, CA and REDWOOOD CITY, CA Parking countdown signs are a strategy employed to help customers more easily navigate downtown parking options at key decision making points – notably at gateways to the district. Both public and private sector examples include Redwood City, CA and Santana Row, San Jose, CA, respectively. In Redwood City, the installation of sensors above light poles further helps identify spaces on city streets. This is the first system of its kind to be installed in the U.S. and aims to reduce search time by customers by 45% while also reducing emissions from idling vehicles. Source: Map data ©2022 Google, Redwood City, CA Source: RWCPulse.com, Redwood City, CA Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 43 Packet Pg. 212 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 35 03 GUIDING PRINCIPLE →Adopt policies that reflect changing market conditions by easing the regulatory burden for businesses, removing outdating restrictions that create hurdles to tenancy, and focus retail and retail-like uses in places where they are market- supported. Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 44 Packet Pg. 213 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 36Source: Prince George’s County, MD Online Zoning Ordinance and Subdivision Regulations Interactive Map and Consolidated Use Table California Avenue Neighborhood Centers RECOMMENDATIONS Streamline, update and/or remove unnecessary use restrictions and pursue regulatory reform to enable tenancy and competitiveness.09 ACTIONS 1.Consider removing or consolidating zoning overlays, incorporating an at-a-glance permitted use table and design standards, and an interactive online map with quick links to relevant regulations. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS and HOW IT’S DONE Palo Alto’s current zoning code is complicated and involves layers of regulations with base zones, supplementary zones (like “combined districts”), and overlay ordinances (like the Retail Preservation Ordinance). Business and property owners find it difficult to understand the use, development, and design requirements that apply to their sites. Layers of regulation create further uncertainty and prolong the approval and permitting processes, which increases risk and cost of doing business, as compared to other municipalities within the region. In an environment where tenants have options, these policies make Palo Alto less appealing to tenants who can open stores in other cities with lower hurdles to market entry. Notably, Palo Alto’s most heavily regulated retail environments struggle the most with vacancies. The City can play a role in mitigating risk and uncertainty while building trust through streamlining and clarifying use, development, and design regulations with a few adjustments and additional tools, including: •Removing or consolidating zoning overlays to avoid confusion and added time, especially where multiple zones double down on the same regulation or where contradictory or circular regulations exist. •Incorporating a consolidated use table making it quick and easy to see what uses are permitted, prohibited, or allowed with a special use permit or supplemental design standards. •Developing an interactive online map that allows the user to toggle layers on and off for legibility and easy access to relevant regulations with a few clicks. KEY PERFORMANCE INDICATORS and OUTCOMES Increased understanding and usability of regulations should make it easier for all users and aid in building trust in city staff and the public process. A public survey could be administered after one year of implemented adjustments to measure satisfaction. RESOURCES The Planning & Development Services Department is well equipped to conduct an in-house evaluation (or engage appropriate subject matter experts) and consolidation of the various use tables that exist throughout the code into a single use table for ease of interpretation. In final form, this use table and applicable regulations can be prepared as an interactive online map for both public and private sector users. The Office of Economic Development could support the effort from an administrative standpoint facilitating internal discussions through the recommended Interagency Economic Development Committee. DISTRICTS Downtown Palo Alto CHAMPION Planning & Development Services SUPPORT Office of Economic Development BEST PRACTICE: PRINCE GEORGE’S COUNTY, MD ONLINE ZONING ORDINANCE and SUBDIVISION REGULATIONS INTERACTIVE MAP and CONSOLIDATED USE TABLE Prince George’s County offers an easy-to-use interactive online zoning map developed by a company that partners with ESRI. The left side panel provides general quick links to regulations, including one to the consolidated use table where the use definition appears by hovering over the land use, itself. By clicking on a parcel, the user immediately receives a district summary, a parcel summary, and a customized list of use allowances and restrictions, and development and design standards applicable only to that site. Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 45 Packet Pg. 214 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 37 California Avenue Neighborhood Centers RECOMMENDATIONS Streamline, update and/or remove unnecessary use restrictions and pursue regulatory reform to enable tenancy and competitiveness.09 ACTIONS 2.Consider amending Section 18.76.20, Architectural Review, of the municipal code to enable more over-the-counter approvals for minor changes. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS Removing some of the regulatory barriers to market entry aids in decreasing vacancy and business success, especially for small (and local) businesses entering the market for the first time. Many of Palo Alto’s existing retail spaces could be improved in short order for new tenants with minimal minor changes. However, the Palo Alto Municipal Code requires architectural review and approval for major and minor projects and changes, including landscaping, signage, exterior remodeling, parking improvements, and interior finish outs that are not part of a major project. Each of the above-mentioned minor changes must adhere to standards and guidelines outlined elsewhere in the code, and, if met, are justifiably approvable over the counter by capable city staff. Signage, for example, is protected by the First Amendment to the United States Constitution, so there is not much, if any, discretion lawfully acceptable beyond location, size and amount regulations. This questions why signage is among the items required an additional discretionary architectural review process if it meets applicable regulations. For small businesses, the time and cost savings with over-the-counter approvals for minor changes potentially reduces uncertainty and risk, which may increase investor interest and contribution to a project. Further, it opens staff and board capacity to focus on larger projects with more substantial impact to design and overall aesthetic of a district while also proving commitment to being business friendly, a goal expressed in the 2030 Comprehensive Plan. RESOURCES and HOW IT’S DONE An amendment to Section 18.76.20 of the Municipal Code to allow for more over- the-counter approvals of proposed minor changes, as recommended, may require an internal study of the code by Planning & Development Services staff with input from critical stakeholders including the Architectural Review Board, property and business owners, and Downtown Palo Alto and California Avenue District Management Entities. With administrative support from the Office of Economic Development, Planning & Development Services would make a recommendation to City Council for approval. KEY PERFORMANCE INDICATORS and OUTCOMES More permits for trades associated with landscaping, signage, exterior remodeling, and interior finish-outs and the frequency with which they are issued could be reviewed annually to assess the amendments’ efficacy and a review of the number of Certificates of Occupancy would indicate impact on vacancy. DISTRICTS Downtown Palo Alto CHAMPION Planning & Development Services SUPPORT Office of Economic Development Property Owners District Management Entities (DMEs) Source: Streetsense, Downtown Palo Alto Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 46 Packet Pg. 215 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 38 California Avenue Neighborhood Centers RECOMMENDATIONS Streamline, update and/or remove unnecessary use restrictions and pursue regulatory reform to enable tenancy and competitiveness.09 ACTIONS 3.Reevaluate the city-wide Retail Preservation Ordinance and consider refocusing its applicability to targeted areas of existing retail concentration while also allowing flexibility in non-street facing portions of buildings. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS and HOW IT’S DONE The Retail Preservation Ordinance was adopted in 2015 to prevent retail space conversion to office use – at a time when the office market was very strong. The post-pandemic office market, however, remains in flux and is likely to remain so for some time. That said, according to local brokers, in-demand office is Class A space in highly amenitized and activated areas, often with a mix of uses including concentrated retail. Currently, the Retail Preservation Ordinance applies city-wide, prohibiting conversion of retail or retail-like uses to other uses including office. This discourages the right-sizing of the City’s overall retail footprint, resulting in retail in areas with weaker market conditions and spreading the City’s retail footprint thin. Further, even with a steady increase in retail demand over the next 10 years, projections suggest a retail oversupply of approximately 460k square feet, meaning there will be too much existing retail space than businesses able to fill those spaces. Retail preservation across the entire City is therefore an impediment to normal market correction. As an alternative, narrowing the geographic applicability of the ordinance and reserving it for established retail districts will enable the market to right-size itself across the City while concentrating retail activity where it makes sense – in the City’s existing commercial districts. A level of flexibility could also be considered for the Retail Preservation Ordinance to allow portions of former retail/retail-like spaces to be occupied by non- retail/retail-like uses as long as the street side is reserved for retail/retail-like activating uses. Traditional retail footprints are shifting. Global and national trends show that retail tenants are recalibrating tenant models toward smaller formats, including complete downsizing or, for tenants in existing leases, repurposing excess space for small-scale fulfillment to gain a competitive advantage over online competitors. Landlords in Downtown Palo Alto and the California Avenue district are challenged to rent out the full ground floor to retail/retail-like uses that typically prefer ample street exposure but not as much depth. This is especially true for historically narrow (<25 feet) and long (>90 feet) lot size/building footprints in established districts. This leaves long and narrow buildings with limited ability to meet requirements of the ordinance as the rear portion of the building/lot is better positioned for office and residential use rather than a second retail tenant. Rarely do retail/retail-like uses prefer spaces without visibility from the street. In addition to leasing vacant space, the street would be activated by a retail/retail-like tenant in an appropriately sized space for today’s needs while contributing to the restoration of a consistent spending base of daytime and/or nighttime population. DISTRICTS Downtown Palo Alto CHAMPION Planning & Development Services SUPPORT Office of Economic Development Palo Alto Chamber of Commerce Property Owners KEY PERFORMANCE INDICATORS and OUTCOMES Ideally, existing established retail districts, including those not studied as part of this effort, would experience less vacancy, overall. Likewise, struggling retail spaces outside of established retail districts would experience less vacancy with the ability to consider uses for which there is demand. A landlord/property owner survey following adopted ordinance revisions could inquire about the ease in which vacancies were filled. Additionally, tracking Certificates of Occupancy annually could offer a quantitative summary of use trends across the City. RESOURCES The Planning & Development Services Department should champion this effort in coordination with the on-going study of the ordinance by Michael Baker International. The Office of Economic Development, the Palo Alto Chamber of Commerce, and retail property owners could be supportive stakeholders offering on-the-ground business insight. Source: Streetsense, Midtown Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 47 Packet Pg. 216 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 39 California Avenue Neighborhood Centers RECOMMENDATIONS Streamline, update and/or remove unnecessary use restrictions and pursue regulatory reform to enable tenancy and competitiveness.09 ACTIONS 4.Enable growth in Neighborhood Goods and Services along California Avenue by: a.Updating the Formula Retail Ordinance and b.Easing use restrictions on in-demand neighborhood serving uses that are currently heavily regulated or prohibited. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS California Avenue is experiencing the highest vacancy rate among all districts studied at 15%, accounting for 31k square feet. Given the small size of the district, vacancy is strongly felt and noticeable. Although referred to as Palo Alto’s “second downtown”, California Avenue is primarily community and neighborhood serving, reliant on surrounding resident spending and what was once reliable and robust spending from near-by workers at Stanford Research Park. With return-to-office rates currently around 40%, post-pandemic spending will shift more towards residents, with opportunities for California Avenue to meet their needs with goods and services that cannot be found or accomplished on-line. Currently, several neighborhood serving uses are heavily regulated or prohibited within the district, adding to the difficulty landlords face in securing tenants. Neighborhood serving uses requiring conditional use permits (CUPs), a regulatory barrier to entry, in the California Avenue district include: •Beauty Salons exceeding 1,800 square feet •Nail Salons exceeding 1,800 square feet •Barber Shops exceeding 1,800 square feet •Fitness or Exercise exceeding 1,800 square feet •Learning Centers for Individual or Small Group Settings •Laundry & Dry Cleaning •Financial Services (Except Drive-In) on ground floor •Medical Offices when fronting California Avenue •Commercial Recreation Uses when fronting California Avenue •Formula Retail Business (with more than 10 stores nationally with standardized characteristics) Outright prohibited in the district are light manufacturing or maker spaces for the production/fabrication/repair/servicing and selling of small items, uses that could be unintrusive and compatible with other uses in the district if provided at a neighborhood scale. RESOURCES and HOW IT’S DONE To enable growth of Neighborhood Goods and Services along California Avenue and decrease vacancy, regulations should be eliminated or significantly eased for the above-mentioned uses. This effort can be conducted in-house and led by the Planning & Development Services Department. For consideration is the square footage threshold alignment with current concepts. Fitness uses, for example, are DISTRICTS Downtown Palo Alto CHAMPION Planning & Development Services SUPPORT Office of Economic Development Palo Alto Chamber of Commerce Property Owners District Management Entity (DME) increasingly coupled with retail concepts. The average size of a personal training/small group fitness studio is 2,970 square feet, according to the Fitness Business Association. Here, the 1,800 square foot threshold for a CUP could be increased to enable by-right tenant options around fitness in their most current format. The Formula Retail Business ordinance could also be considered for an update, narrowing the focus to Food & Beverage tenants rather than all retail chains with 10 or more stores nationwide. In fact, the restriction may eliminate retail concepts that may be new to the region. These formula retail concepts help drive customer interest and, more importantly, foot traffic, which helps all businesses in the district. The Office of Economic Development could support Planning & Development Services in a public process for consideration of easing restrictions on neighborhood- serving uses through internal administrative efforts. Critical stakeholders include the Palo Alto Chamber of Commerce, property owners, and the District Management Entity. BEST PRACTICE: FORMULA RETAIL ORDINANCE and FORMULA RESTAURANT ORDINANCE, CORONADO, CA In an effort to maintain the City’s unique retail base and space for small, local businesses, the City of Coronado implemented two formula ordinances. Allowed with a special use permit, formal businesses must demonstrate compatibility with surrounding uses in terms of design and size and may not occupy more than 50 linear feet of street frontage or a street corner. The Formula Restaurant Ordinance primarily applies to formula fast food restaurants with 15 or more locations, and the Formula Retail Ordinance limits location and size to a single story for formula businesses, except for grocery stores, banks, savings and loans, full-service restaurants, and theaters. Source: Map data ©2022 Google, Orange Avenue, Coronado, CA Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 48 Packet Pg. 217 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 40 California Avenue Neighborhood Centers RECOMMENDATIONS Grow the market by enabling residential development in select areas of Downtown Palo Alto and California Avenue.10 ACTIONS 1.Consider increasing allowable height and floor area ratio (FAR) to accommodate residential in mixed-use projects.. 2.Allow exclusively residential projects, including the ground floor where currently restricted in the California Avenue district. 3.Prioritize residential development on underutilized property as identified in the 2023-31 Housing Element. ESTIMATED TIME + COST High (>$100k) Short (<1 year)Long (>5 years) Low (<$50k) WHY THIS MATTERS Before the pandemic, retail districts enjoyed a stable daytime population of office workers, including those from Stanford Research Park and many others within and around Palo Alto. However, with an average return to the office rate of 40%, Downtown Palo Alto and California Avenue will need to restore a stable daytime population by other means including increased residential use within the districts themselves. Enabling capture of residential density in districts where density is appropriate and needed to sustain retail also contributes to the City’s obligation to meet State mandated affordable housing goals. Currently in Downtown Palo Alto and California Avenue residential is difficult to develop because of the mismatch between lot size, allowable height and floor area ratio (FAR), restrictions on ground floor use within certain zones and spaces protected by supplemental zones and overlays, as well as restrictions on exclusively residential use in certain zones. To explain: •Height and FAR: Increasing allowable height and FAR Downtown and in the California Avenue district could enable a greater mix of uses that includes residential on traditionally small lots. For Downtown, additional height over 50 feet, even if just an additional 10 to 12 feet, could enable taller floor to ceiling heights per floor, which, according to landlords and brokers, is more desirable among tenants. It may also result in a shift in construction type from only wood to concrete and wood increasing costs, but the project could be large enough to host more lucrative space for retail/retail-like and office uses – uses that historically pay rent and operating costs in triple net leases common in the region – that then subsidize the residential units, whether market rate or affordable – the uses that historically only pay rent and a share of utilities for their leasable space. Without the extra height and FAR, projects may not be able to justify, financially, the addition of residential use, but retail/retail-like uses and office at this time, and for the foreseeable future, may not be able to fill enough above ground floor space to justify a project. What’s left is stagnation and decline unless more flexible options are considered. Along California Avenue and the surrounding area, heights are capped at 37 feet within the CC(2) zone, which is likely not tall enough to justify a mixed-use project with required ground floor retail. If mixed-use projects are the envisioned and market supported future, the code must be amended to increase height and FAR, accordingly, to enable implementation of that vision. DISTRICTS Downtown Palo Alto CHAMPION Planning & Development Services SUPPORT Office of Economic Development Property Owners •Ground Floor Restrictions: Ground floor space in Downtown’s CD-C (GF) zone and in California Avenue’s CC(2) (R) zone is required to be exclusively retail/retail- like uses as prescribed, and the Retail Preservation Ordinance restricts retail/retail- like conversions regardless of zone. This means that residential is not allowed to any extent on the ground floor, even in parts of the CD-C zone in Downtown outside of the Ground Floor (GF) combing district that allows exclusively residential. •Exclusively Residential Restriction: The California Avenue area is layered with zoning restrictions that inevitably result in residential use being limited to mixed- use projects with ground floor non-residential or retail/retail-like use. Although appropriate for properties lining California directly, these requirements span well beyond those properties into areas along secondary streets that may be well suited for exclusively residential from the ground floor up. Lastly, there are several underutilized properties identified in the City’s adopted 2023-31 Housing Element that would be well suited for residential use. Lots within Downtown and the California Avenue area should be prioritized to ensure critical day- time population is restored in these districts. KEY PERFORMANCE INDICATORS and OUTCOMES Ideally, Downtown Palo Alto and the California Avenue district would see more residential density and therefore more reliable spending. Certificate of Occupancy tracking for residential units and business sales tax tracking in both districts could offer a quantitative summary of residential density over time and related retail sales. RESOURCES and HOW IT’S DONE The Planning & Development Services Department should champion this effort in coordination with on-going Housing Element studies and updates. It should involve a public engagement process with ample input from Downtown and California Avenue property owners and developers. The Office of Economic Development could support the effort by facilitating internal discussions through the recommended Interagency Economic Development Committee. Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 49 Packet Pg. 218 of 302 PA L O A L T O , C A —— — — — — — — — — EC O N O M I C D E V E L O P M E N T S T R A T E G I E S 41 Item 5 Attachment A - Comprehensive Economic Development Strategies Report Item 5: Staff Report Pg. 50 Packet Pg. 219 of 302 City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Community Services Meeting Date: August 14, 2023 Report #:2306-1712 TITLE Approval of a revised Term Sheet with Pets in Need for Operations of the Palo Alto Animal Shelter and an Interim Payment in the Amount of $55,535 per month beginning June 1, 2023 until a new Agreement is executed; CEQA status - not a project. RECOMMENDATION Staff recommends the Council approve: 1. a proposed Term Sheet with Pets in Need for operations of the Palo Alto Animal Shelter and direct staff to return to Council for approval of an Agreement reflecting these terms, and 2. an interim payment to Pets in Need in the amount of $55,535 per month beginning June 2023 and each month until a new Agreement is executed, and authorize the City Manager to execute any contract amendment necessary. EXECUTIVE SUMMARY In February 2022, the City Council directed staff to work with Pets-in-Need (PIN) toward development of a new Agreement that would result in a long-term partnership for shelter operations. City staff and PIN have been working collaboratively to develop a Term Sheet that, if approved by the Council and PIN Board of Directors, would be the basis for a new five-year Agreement for the period 2023 - 2027. The Council discussed the proposed terms at a Study Session on March 27, 20231 and provided direction and feedback to staff June 12, 20232. The direction received from Council and additional input provided by the PIN Board of Directors on July 20, 2023 resulted in a revised Term Sheet (Attachment A) that staff is recommending for approval. 1 City Council, March 27, 2023; Agenda Item #3; SR #2302-0940, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82278&dbid=0&repo=PaloAlto 2 City Council, June 12, 2023, Agenda Item #13, https://cityofpaloalto.primegov.com/Portal/viewer?id=2049&type=0 Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 1 Packet Pg. 220 of 302 The terms included represent increased staffing and associated compensation to PIN with proposed net cost of $1.4 million for the first year with an annual escalator equivalent to the Consumer Price Index (CPI). This reflects an increase from the Fiscal Year 2023 compensation of $0.7 million. The FY 2024 Adopted Operating Budget anticipated increased costs for services and includes additional funding of $0.5 million in FY 2024 for a total of $1.2 million. Based on the current term sheet, additional funding will be needed. Other terms include an increase in the City’s capital investment to improve the shelter facility and a minor reduction in scope of services. The FY 2024 Adopted Capital Budget includes funding of approximately $2.8 million in the Animal Shelter Renovation capital project (PE-19002) for estimated capital investment based on the current terms. PIN is also requesting an interim payment of $55,535 per month beginning June 1, 2023 and continuing until a new Agreement is finalized. The fee represents the per month difference between the Year 5 compensation in the current Agreement (Attachment B) and the first-year compensation in the proposed new Agreement (Attachment A). BACKGROUND 3 to operate the Animal Shelter. The term and compensation of the current Agreement (Attachment B) include: 3 City Council, November 26, 2018; Agenda Item #13, SR#9822, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reportscmrs/year-archive/2018/id-9822-pets-in-need.pdf?t=62179.92 Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 2 Packet Pg. 221 of 302 •A Contingency Fund of $200,000 •A Compensation for Renovation Delays Fund of $60,000 •Completion by City of capital improvement projects not to exceed $3.4 million •Key responsibilities of Pets in Need include: •Animal Shelter Services including sheltering stray, abandoned, and owner surrendered animals •Medical Services including veterinarian services to shelter animals, vaccination clinics, micro-chipping, and a low cost spay and neuter clinic •Animal adoptions and foster program •Operating schedules for shelter services, emergency veterinary On November 15, 2021, Pets in Need (PIN) provided formal notification to the City that it would exercise its right to terminate the Agreement without cause in 12 months’ time as allowed in Section 19.2 of the Agreement. PIN stated delays in completing the capital improvement projects, particularly the new dog kennel building as the primary reason for terminating the Agreement. Development of a new Agreement City and PIN staff discussed how best to operate the Animal Shelter for the remaining term of the Agreement and began exploring how to continue the partnership beyond the termination date. On February 14, 20224, the City Council passed the following motion unanimously: A.That as a condition for continuing good faith negotiations, that Pets in Need would agree to extend the notice of termination six months beyond the current date; B.Proceed with negotiations with Pets in Need for a long-term contract agreement for animal services in Palo Alto; C.Evaluate the necessary kennel size for community partners that we serve; D.Include some form of trap and neuter program; E.Include a small animal area in the renovation plans; F.Assure that the contract agrees upon hours of operation and services provided; G.That the parties agree to pursue a fundraising program to supplement existing capital commitments for the shelter; and H.Explore the transition to a new database. The PIN Board supported extending the termination date for six additional months to end on March 15, 2023. On March 27, 20235, a Council Study Session provided an update on the status of contract negotiations with PIN and an opportunity for the Council to provide feedback on a draft Term Sheet. City staff included a preliminary estimate of the cost and revenue associated with bringing operations of the Animal Shelter back to an in-house model. PIN and City staff 4 City Council, February 14, 2022; Agenda Item #9; SR #13952, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81766 5 City Council, March 27, 2023; Agenda Item #3; SR #2302-0940, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82278 Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 3 Packet Pg. 222 of 302 continued to refine the Term Sheet and mutually agreed to extend the current agreement to terminate on September 30, 2023. •A breakdown of PIN’s costs showing the increased compensation from the original Agreement. •The percentage of PIN’s operating budget that is for animals covered in Palo Alto, Los Altos and Los Altos Hills. •A comparison chart of PIN’s fees with other municipal shelters’ fees. •A more detailed and accurate comparison of PINs services to the Peninsula Humane Society. •PIN’s revenue over the previous five years. •Consideration of a minimum and maximum number of surgeries and events. •A side-by-side comparison of PINs proposal and the in-house model. •A more defined capital plan identified in the Agreement. •Additional information on feral cats, including the method by which they are handled, how many cats are in Palo Alto, where cats are released. th staff report6. During this meeting, an additional term was introduced that would provide PIN additional compensation of $55,535 for services rendered since June 1, 2023 and continuing until a new Agreement is executed. PIN calculates this as the difference between the monthly fee (1) specified for Year 5 in Exhibit B of the 2019 Agreement and (2) the monthly fee specified for Year 1 in the proposed new Agreement, effective June 1, 2023. 6 City Council, June 12, 2023, Agenda Item #13, https://cityofpaloalto.primegov.com/Portal/viewer?id=2049&type=0 Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 4 Packet Pg. 223 of 302 3. Higher revenue opportunities 4. Consider a possible 3-year contract 5. Level of service and termination clause 6. Reporting and oversight 7. Spayed and neutered metrics ANALYSIS Since the June 12th Council meeting, staff from the City and PIN have been meeting regularly to revise the Term Sheet in response to the Motion and other comments received during the meeting. The Term Sheet (Attachment A) has been revised to reflect the Council’s comments and direction to staff as described below. In some instances, where staff recommend not changing the term, an explanation is provided. No Trap/Neuter/Return (TNR) changes – The language included in the revised Term Sheet is generally consistent with the language proposed in the motion. The language reads, “Both parties will work together to develop a transparent and humane feral cat program that reflects municipal best practices and takes into account the impact on public health and wildlife. The program will continue the current practice of not releasing feral cats or causing them to be released.” Number of surgeries – It is difficult to do a direct comparison of the number of in-jurisdiction7 spay/neuter surgeries performed by the City prior to 2019 and the number of in-jurisdiction surgeries performed by PIN because the City’s records did not track that information. Moving forward, the focus will be meeting demand of in-jurisdiction animals. Wait times for surgery for in-jurisdiction animals will be no more than one month, except in the event of unexpected and exceptional circumstances. Higher revenue opportunities – Staff from the City and PIN discussed where opportunities might exist to bring in more revenue. PIN may inform customers of the full cost of a service and invite customers to voluntarily cover all or a portion of the full cost. Donations received via adoption and veterinary services at the Palo Alto Animal Shelter will be used exclusively for the Palo Alto Animal Shelter. Staff explored a revenue share with the City and PIN; however, due to requirements to honor donor intent, as well as intensive non-profit accounting requirements, the option for fundraising collaboration is not considered a feasible option. This has also resulted in a modification to how capital improvements are funded. In the Term Sheet, the City’s commitment for future capital investments is $2.5M. In previous versions, any amount over that would be funded by PIN. Since the funds PIN would need to contribute would come from donations, PIN has determined this is not feasible for the same reasons described above. The City and PIN would need to renegotiate any additional capital funds needed beyond the allocated amount in the agreement. 7 In-jurisdiction is defined as animals originating from Palo Alto, Los Altos, or Los Altos Hills. Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 5 Packet Pg. 224 of 302 Contract term – Council directed staff to consider a three-year term for a new Agreement. Staff from both the City and PIN prefer to maintain the five-year term, which is consistent with the term in the current Agreement. The capital project would likely not be completed until well into that three-year period, leaving PIN with little opportunity to demonstrate their ability to operate the shelter with the additional space improvements before the Agreement expires. Also, staff is hopeful that the revised agreement will provide better clarity in roles and responsibilities resulting in a successful, long-term partnership with PIN. The Agreement will include a termination clause that allows either party to terminate the Agreement similar to the current Agreement. FISCAL/RESOURCE IMPACT Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 6 Packet Pg. 225 of 302 total of $6.0 million has been allocated to this project and $2.9 million has been expended on shelter improvements. STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 7 Packet Pg. 226 of 302 Page 1 of 4 Term Sheet DRAFT •Final budget is subject to City Council approval. •City will manage all phases of capital improvement projects to include planning, design, and construction, with input from PIN. •City will contract with a reputable animal environment specialty architecture firm for design of any building improvements. •New cat and small animal area to include a specific intake area and meet and greet space. •Additional dog kennel improvements to include large guillotine doors and any needed safety retrofitting. •Retrofit medical suite to better accommodate large animals. Item 6 Attachment A - Proposed Term Sheet between Pets in Need and City of Palo Alto for a new Five-year Agreement, Revised July 20, 2023 Item 6: Staff Report Pg. 8 Packet Pg. 227 of 302 Page 2 of 4 F. Annual compensation to PIN will start at $1.37M for Year 1 and increase annually at a minimum of the CPI cost-of-living increase for each year plus an annual contingency of $20,000 for ancillary expenses. G. City will cover all costs of delivering any additional services City requires of PIN above and beyond the original 2019 Agreement (such as additional spay neuter requirements). H. PIN may also provide additional services not specified in the new Agreement at its own expense. Services must comply with all applicable laws and City policies. PIN will notify City staff 14 days before providing such services. I. In addition to the monthly fee due to PIN under the new Agreement, City shall pay to PIN the difference between the monthly fee (1) specified for Year 5 in Exhibit B of the 2019 Agreement and (2) the monthly fee specified for Year 1 in the new Agreement, retroactive from the effective date of the new Agreement to June 1, 2023. By way of example only, if the Agreement is effective October 1, 2023, City shall pay to PIN the difference between the new monthly fee and the amounts due under the 2019 Agreement for the months of June, July, August, and September 2023. Based on the compensation agreed in this Term Sheet, the monthly additional fee shall be $55,535. Scope of Services: PIN will provide the services specified in the current Agreement, with the following modifications: J.Shelter hours. PIN will maintain public access hours to the shelter seven days per week, for a minimum of 40 hours per week. The shelter may be closed to the public on PIN observed holidays. K.Spay/neuter. PIN will provide low-cost, high-quality spay/neuter services to dogs and cats to the best of its ability, prioritizing residents of Palo Alto, Los Altos, and Los Altos Hills. Wait times for surgery for in-jurisdiction animals will be no more than one month, except in the event of unexpected and exceptional circumstances. L.Vaccine Clinics. PIN will provide low-cost vaccination clinics in Palo Alto a minimum of one time per week. PIN will work toward providing one after-hours or weekend clinic per month. M.After-hours emergency vet care. For animals on stray hold, City will pay for any after- hours emergency vet services. N.Cruelty investigations. PIN will provide veterinary care, including appropriate medical records, for live animals that are impounded as part of cruelty investigations. However, PIN will not have an obligation to provide additional services related to cruelty investigations, including after-hours emergency veterinary care, post-mortem examinations of animals that are deceased upon arrival at PIN, and off-site crime scene investigations, but may do so at its sole discretion. O.Disposal of Dead Wildlife. Costs for disposal and cremation of dead wildlife will be the responsibility of the City. P.Reporting. PIN will submit monthly activity reports to include the following information: Item 6 Attachment A - Proposed Term Sheet between Pets in Need and City of Palo Alto for a new Five-year Agreement, Revised July 20, 2023 Item 6: Staff Report Pg. 9 Packet Pg. 228 of 302 Page 3 of 4 •Medical statistics including spay and neuter, microchips, and vaccinations (number of clinics and number of animals vaccinated) for in jurisdiction and out of jurisdiction animals. •Number of animals in and out of the shelter by type of animal and type of intake and outcome. •City of origin of all animals upon shelter intake. PIN will submit quarterly financial reports for the Palo Alto Animal Shelter to the City to include: •Revenues from services received at the Palo Alto Animal Shelter, such as adoptions and medical services to include vaccines and spay/neuter surgeries. •Expenditures to include staffing, contracts, animal care, indirect costs, and administrative operations. City and PIN agree to the following: Q.Feral Cat Policy. Both parties will work together to develop a transparent and humane feral cat program that reflects sheltering best practices and takes into account the impact on public health and wildlife. The program will continue the current practice of not releasing feral cats. R.Animal Welfare. PIN and the City will regularly review generally accepted best animal welfare practices to ensure all policies in effect at the Palo Alto shelter are up-to-date and in line with shelter best practices. S.Animal Shelter Software. PIN is at liberty to acquire, at its own cost, new shelter management software that best meets its needs. The City will work with PIN to identify the minimum viable data that PIN will be required to add to the current, shared software system Chameleon upon PIN animal intake. T.Existing City Policy. PIN will comply with all applicable municipal and other laws, and with the City’s shelter policies. PIN policies approved by the City will be specified in the new Agreement. If either PIN or the City has an interest in revising or creating a new policy, it will notify the other party in writing. Notices from PIN will be addressed to the Supervising Animal Control Officer. The Supervising Animal Control Officer will advise the PIN CEO in writing within five (5) business days whether review and approval are deemed necessary. Review and approval will be deemed necessary only if the proposed revision will result in (a) a change to the terms of the Services Agreement, or (b) a material change in the level of risk to the City, in services to residents of Palo Alto and/or the contract cities, or in roles and duties of City staff. Notices from the City will be addressed to the PIN CEO, who will advise the City in writing within five (5) business days whether review and approval are deemed necessary. Review and approval will be deemed necessary only if the proposed revision or addition will result in (a) a change to the terms of the Agreement or the cost to PIN of Item 6 Attachment A - Proposed Term Sheet between Pets in Need and City of Palo Alto for a new Five-year Agreement, Revised July 20, 2023 Item 6: Staff Report Pg. 10 Packet Pg. 229 of 302 Page 4 of 4 performance of the Agreement, or (b) a material change in the level of risk to PIN, in services to residents of Palo Alto and/or the contract cities, or in roles and duties of PIN staff. In either case, if the response is not an approval, the parties will meet within five (5) business days of receipt of the response and attempt in good faith to reach an agreement. The subject policy may be revised only upon the written agreement of both parties. All City and PIN policies relating to the operation of the Palo Alto Animal Shelter will be kept in a shared online folder and be accessible to all PIN and City staff. U.Corrective Action Plan. The City and PIN agree to work in good faith to meet the obligations described in the Scope of Services and Capital Improvements sections of the Agreement. If either party determines that it will not meet a due date or will fail to deliver a service, it will promptly send a written corrective action plan to the other party. The corrective action plan will include the following information: •Task that will not be met. •Justification for failure to complete task •Plan to correct including timeline to reach full compliance •Weekly progress updates to Project Manager (of either the City or PIN) If the timeline to reach full compliance is not acceptable to the other party, or if compliance has not been met by the due date identified in the corrective action plan, the parties will meet and confer to determine next steps. Force Majeure V. Standard Force Majeure provision to be added, including epidemics and quarantines. Item 6 Attachment A - Proposed Term Sheet between Pets in Need and City of Palo Alto for a new Five-year Agreement, Revised July 20, 2023 Item 6: Staff Report Pg. 11 Packet Pg. 230 of 302 CITY OF PALO ALTO CONTRACT NO. _C_1_9_17_4_4_9_3 __ _ AGREEMENT BETWEEN THE CITY OF PALO ALTO AND PETS IN NEED FOR PROFESSIONAL SERVICES This Professional Services Agreement ("Agreement") is entered into on this ..1.L day of January .~by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY'' or "City of Palo Alto"), and PETS IN NEED, a California non-profit public benefit corporation, located at 871 Fifth Ave, Redwood City, CA 94063 C'CONSULTANT' or "Pets In Need"). RECITALS The following recitals are a substantive portion of this Agreement and are hereby incorporated herein by this reference. A. CITY intends to provide animal sheltering and veterinary care, as more fully described in Exhibit "A" (Scope of Services), attached to and made a part of this Agreement, for the City of Palo Alto, and for the City of Los Altos and the Town of Los Altos Hills (the "Contract Cities"), at the Palo Alto Animal Shelter, 3281 East Bayshore Road, Palo Alto, CA 94303 (the "Palo Alto Animal Shelter" or the "Premises"). B. CITY and CONSULTANT desire for CONSULTANT to perform the Services {as defined below) at the Palo Alto Animal Shelter pursuant to the terms and conditions set forth in this Agreement. C. CITY acknowledges that CONSUL TANT is entering into this Agreement in furtherance of its no-kill mission, and that, to the extent permitted by law, CONSUL TANT will operate the Palo Alto Animal Shelter as a no-kill shelter. D. CITY and CONSUL TANT are entering into this Agreement with the intention of establishing a long -term partnership to offer exceptional shelter services for Palo Alto and its partner cities of Los Altos and Los Altos Hills, while working together towards building a new Pets in Need Palo Alto animal shelter facility. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSUL TANT shall perform the services described at Exhibit "A· ("Services") in accordance with the terms and conditions contained in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution (the "Effective Date") and continuing for five (5) years from the Effective Date, unless terminated earlier pursuant to Section 19 of this Agreement. The term of this Agreement may be renewed or extended upon the mutual written agreement of the parties. One year prior to the expiration of the term (or other such timeline as may be mutually agreed upon by the parties), either party may request the parties to begin negotiating in good faith a renewal or extension of this Agreement. Page 1 of25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 12 Packet Pg. 231 of 302 SECTION 3. USE OF PREMISES. CONSUL TANT's use of the premises shall be subject to the additional terms set forth on Exhibit "D" (Use of Premises) attached hereto. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be in the amount of, and shall not exceed three-million, four-hundred forty thousand six-hundred twenty six dollars and ten cents ($3,440,626.1 O) as detailed in Exhibit "B" (Compensation). CONSUL TANT agrees to complete all Services within this amount. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Notwithstanding the foregoing, a contingency fund of two-hundred thousand dollars ($200,000) (the "Contingency Fund") shall be available; as well as a fund for the compensation of renovation delays ("Compensation of Renovation Delays Fund") of sixty thousand dollars ($60,000) shall be available, as detailed in Exhibit "B" (Compensation). In the event the Contingency Fund and the Compensation of Renovations Delays Fund are utilized as provided for herein, the total compensation for Services, reimbursable expenses and the costs payable by CITY to CONSULTANT under this Agreement, shall be and shall not exceed three million, seven hundred thousand, six-hundred twenty-six dollars and ten cents ($3,700,626.10) as detailed in Exhibit "B" (Compensation), subject to Section 19 ("TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES"). SECTION 5. INVOICES. In order to request payment, CONSULTANT shall invoice the CITY for payment on a monthly basis. Invoices shall describe the services performed and, if reasonably requested by CITY, supporting documentation. CONSULTANT's invoice shall be submitted to the City's project manager for payment at which point the CITY has 30 business days from the date of the submission to render payment to the CONSUL TANT. Invoices must also include CONSUL TANT name, address, contract number, description of services, date of services, and compensation amount. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSUL TANT or under CONSUL TANT's supervision. CONSUL TANT represents that it possesses the professional and technical personnel necessary to perform or supervise, as applicable, the Services required by this Agreement and that its personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, and its employees have and shall maintain (and that it shall require its subcontractors, if any, to have and 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 . Notwithstanding anything to the contrary in this Agreement, the representations and warranties in this Section 6 are exclusive and are in lieu of all other warranties of any kind , whether express or implied (including, without limitation, the implied warranties of merchantability, fitness for a particular purpose and noninfringement, and all warranties that may arise from course of dealing, course of performance or usage of trade), all of which are hereby expressly disclaimed. SECTION 7. COMPLIANCE WITH LAWS. CONSUL TANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that are applicable to the performance of the Services or those engaged to perform Services under this Agreement. CONSUL TANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services . Page 2 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 13 Packet Pg. 232 of 302 SECTION 8. ERRORS/OMISSIONS. CONSUL TANT is solely responsible for costs , including, but not limited to, increases in the cost of Services, arising from or caused by CONSUL TANT's errors and omissions, including, but not limited to, the costs of correcting such errors and omissions, any change order markup costs, or costs arising from delay caused by such errors and omissions or unreasonable delay in correcting such errors and omissions. SECTION 9. [RESERVED]. SECTION 10. INDEPENDENT CONTRACTOR . It is understood and agreed that in performing the Services under this Agreement CONSULTANT, any person employed by CONSULTANT, and any subcontractor retained by CONSULTANT to perform any of CONSULTANT'S obligations under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSUL TANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations without the prior written consent of the City Manager. The City Manager shall have sixty (60) days from receipt of Consultant's notice of proposed assignment to accept or decline the proposed assignment in writing. If the City Manager declines the proposed assignment, he or she shall state the basis for the decision in the written notice to CONSULTANT. Consent to one assignment shall not be deemed to be consent to any subsequent assignment. Any assignment not expressly contemplated ui:,der this Agreement, or made without the approval of the City Manager shall be void . SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that subcontractors may be used to perform CONSULTANT'S obligations under this Agreement. The subcontractors authorized by CITY to perform work on this Project are: a. Sage Veterinary Center; and b. Pets Rest Cemetery, and c. Any other subcontractors retained by CONSUL TANT to perform CONSULTANT'S obligations under this Agreement. CONSULTANT shall be responsible for directing the work of any subcontractor and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning subcontractor compensation . CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subcontractor as more fully set forth in Section 16 of this Agreement. CONSULTANT shall change or add a subcontractor to perform the Services set forth on Exhibit A hereto only with the prior approval of the City Manager or his designee (such approval not to be unreasonably withheld, delayed or conditioned). The City Manager shall have thirty (30) days from receipt of CONSULTANT's request to approve or decline in writing CONSULTANT's request to change or add subcontractors . SECTION 13. PROJECT MANAGEMENT. CONSULTANT shall assign its executive director, who currently is Al Mollica, as the project manager to have supervisory responsibility for the performance, progress, and execution of the Services and as the project coordinator to represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the project manager (including if, at Page 3 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 14 Packet Pg. 233 of 302 any time, Al Mollica no longer serves as executive director of CONSULTANT). CONSUL TANT shall promptly notify the CITY's project manager of such substitution and consider in good faith CITY's requests with respect to such substitution. The parties agree that during the term of this Agreement and for all purposes of this Agreement, CONSULTANT'S project manager shall be authorized to act as the "Superintendent" of the City's animal services division pursuant to Section 6.04.100 of the Palo Alto Municipal Code, for purposes of [Sections 6.12.010, 6.12.030, 6.12.050, 6.16.050, and 6.32.040 of the Palo Alto Municipal Code. CITY's project manager is the Director of Community Services, Community Services Department, 1305 Middlefield Road, Palo Alto, CA 94303, Telephone (650) 463-4900, who is currently Monique leConge Ziesenhenne. The project manager shall 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 with prompt written notice to CONSUL TANT. SECTION 14. INTELLECTUAL PROPERTY RIGHTS. 14.1 Definition of Intellectual Property Rights. "Intellectual Property Rights" means patents of any type, design rights, utility models or other similar invention rights, copyrights, mask work rights, trade secret or confidentiality rights, trademarks, goodwill, trade names, logos and service marks and any other intangible property rights, including applications and registrations for any of the foregoing, in any country, arising under statutory or common law or by contract and whether or not perfected, now existing or hereafter filed, issued, or acquired. 14.2 "Pets In Need" Ownership. The parties acknowledge and agree that, as between the parties, Pets In Need owns all Intellectual Property Rights in its name ("Pets In Need"), logos and marks, as may be amended from time to time by Pets In Need . 14.3 "City of Palo Alto" Ownership. The parties acknowledge and agree that, as between the parties, the City of Palo Alto owns all Intellectual Property Rights in its name ("City of Palo Alto"), logos and marks, as may be amended from time to time by the City of Palo Alto, and in accordance with Palo Alto Municipal Code as may be amended from time to time. 14.4 "Palo Alto Animal Shelter" Ownership. The parties acknowledge and agree that, as between the parties, the City of Palo Alto owns all Intellectual Property Rights in the name "Palo Alto Animal Shelter". 14.5 Grant of License by City of Palo Alto. The City of Palo Alto hereby grants to Pets In Need a royalty-free, non-transferable term license, for the term of this Agreement, to use, reproduce, make derivative works, display, and perform publicly the name "Palo Alto Animal Shelter" solely in conjunction with "Pets in Need", for example, and without limitation, "Pets in Need Palo Alto Animal Shelter" and "Palo Alto Animal Shelter, operated by Pets in Need," for purposes of the performance of this Agreement, as provided for herein. 14.6 Name Changes; Development of Logos or Marks. Any name changes, derivative works, or logos or marks as may be developed by Pets In Need with regard to such animal shelter are required to be approved in writing by the City of Page 4 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 15 Packet Pg. 234 of 302 Palo Alto City Manager or designee prior to any publication, or any other public use, in any form or media. The City Manager shall approve or deny such requests in writing within 45 days of receipt of CONSULTANT's complete written proposal, and shall set forth its basis for any denial in writing. During the term of this Agreement, the City of Palo Alto shall not change such name of such animal shelter, nor develop any derivative works, or logos or marks, with regard to such animal shelter, except as is mutually agreed in writing with the Pets In Need Executive Director or designee prior to any publication, or any other public use, in any form or media. The City Manager shall approve or deny such requests within 45 days of Consultant's complete written proposal, and shall set forth its basis for any denial in writing. Notwithstanding anything to the contrary in this Agreement, CITY agrees that CONSULTANT may offer naming rights for any wing, room, kennel, or other area within the shelter in compliance with the City's Naming Policy and Procedure. · 14.7 Limitations on uPets In Need Palo Alto Animal Shelter". The City of Palo Alto agrees that its use of the name "Pets In Need Palo Alto Animal Shelter", and as may be changed as provided for herein, with regard to the animal shelter that is the subject of this Agreement, as well as any logos or marks that may be developed and approved as provided for herein with regard to such shelter, are strictly limited to the term of this Agreement, and that, unless otherwise agreed by the parties in writing, upon expiration or termination of this Agreement, the City of Palo Alto shall cease and desist all use of such names, logos and marks with regard to such animal shelter in relation to the ongoing operation of such shelter as of the date of such termination or expiration. 14.8 Use of City of Palo Alto Seal or Logo. Any use by Pets In Need of any City of Palo Alto seal or logo is required to be approved in writing by the City of Palo Alto City Manager or designee prior to any publication or any other public use, in any form or media, and in accordance with Palo Alto Municipal Code as may be amended from time to time, provided that the City Manager or his designee shall approve or deny in writing a written request by Pets in Need within ten (10) days of the date of the request, and shall set forth his or her basis for any denial in writing. 14.9 Use of Pets in Need Seal or logo. Any use by the City of Palo Alto of any Pets In Need seal or logo is required to be approved in writing by the Pets In Need Executive Director or designee prior to any publication, or any other public use, in any form or media, provided that the Executive Director of PIN or designee shall approve or deny in writing a written request by CITY within twenty (20) days of the date of the request. 14.10 Reservation of Rights. All Pets In Need Intellectual Property Rights not expressly granted under this Agreement are reserved to and retained by Pets In Need . All City of Palo Alto Intellectual Property Rights not expressly granted under this Agreement are reserved to and retained by the City of Palo Alto. SECTION 15. AUDITS. CONSUL TANT shall permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT's records pertaining to CONSULTANT'S performance of the Services under this Agreement. CONSUL TANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY; LIMITATION OF LIABILITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify , defend and hold harmless CITY, its Council members, officers, employees and Page 5 of25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 16 Packet Pg. 235 of 302 agents (each a "CITY Indemnified Party") from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including reasonable attorneys' fees, experts fees, court costs and disbursements ("Claims") to the extent resulting from, or arising out of (i) any act or omission of CONSULTANT that is outside the scope of CONSULTANT's authority under this Agreement and/or (ii) the negligence or willful misconduct of CONSULTANT or its officers, employees, agents or subcontractors in the performance of this Agreement. To the fullest extent permitted by law, CITY shall indemnify, defend and hold harmless CONSUL TANT, its directors, officers, employees and agents (each a "CONSULTANT Indemnified Party") from a·nd against any and all third party Claims to the extent resulting from or arising out of (i) the negligence or willful misconduct of CITY or its officers, employees, agents or subcontractors in the performance of this Agreement , (ii) any condition in or about the Premises, except to the extent caused by the negligence or willful misconduct of CONSULTANT or a CONSUL TANT Indemnified Party. or (iii) CITY's decision to transition to a consultant-provided service delivery model and City's decision, based on CONSULT ANT's representations contained in its proposal to the City and herein, to contract with CONSULTANT to provide the Services. 16.2. In the event of concurrent negligence of more than one party, its Council members (or directors), officers, employees, agents or subcontractors, the liability for any and all Claims shall be apportioned under the California theory of comparative negligence as presently established or as may hereafter be modified. Nothing in this Agreement shall constitute a waiver or limitation of any rights that a party may have under applicable law in the event of concurrent negligence of persons or entities other than the parties to this Agreement. 16.3. The parties agree to cooperate with each other in the investigation and disposition of third-party Claims hereunder. It is the intention of the parties to reasonably cooperate in the disposition of all such Claims. Such cooperation may include joint investigation, defense and disposition of claims of third parties hereunder. The parties agree to promptly inform one another whenever an incident report, claim or complaint is filed or when an investigation is initiated concerning this Agreement. Notwithstanding the foregoing, in the event of a conflict in interest, each party may conduct its own investigation and engage its own counsel. 16.4. Each party agrees to mitigate any loss or damage which it may suffer in consequence of any breach by the other party of the terms of this Agreement. or any fact, matter, event or circumstance giving rise to a Claim. 16.5. LIMITATION OF LIABILITY. N01WITHSTAND1NG ANYTHING TO THE CONTRARY CONTAINED HEREIN OR ELSEWHERE, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES, INCLUDING BUT NOT LIMITED TO LOST PROFITS IN CONNECTION WITH THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF ANY SUCH POTENTIAL CLAIM , LOSS OR DAMAGE . 16.6. LIMITATION OF LIABILITY OF CITY. EXCEPT WITH REGARD TO CITY'S OBLIGATIONS TO INDEMNIFY AND HOLD HARMLESS THE CONSULTANT PURSUANT TO THIS SECTION 16, CITY'S PAYMENT OBLIGATIONS UNDER THIS AGREEMENT SHALL BE LIMITED TO THE PAYMENT PROVIDED FOR IN SECTION 4 (NOT TO EXCEED COMPENSATION) OF THIS AGREEMENT. Pages of25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 17 Packet Pg. 236 of 302 16.7. LIMITATION OF LIABILITY OF CONSULTANT. IN NO EVENT SHALL THE TOTAL AGGREGATE LIABILITY UNDER THIS AGREEMENT OF CONSULTANT TO CITY EXCEED FIVE MILLION DOLLARS. 16.8. CITY represents and warrants that (i) it has complied with Section 2.30.250 of the Palo Alto Municipal Code and (ii) the CITY's indemnification obligations contained in this is Section 16 represent the valid and enforceable obligations of CITY. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, shall not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. No waiver of a condition or nonperformance of an obligation hereunder is effective unless it is in writing signed by the authorized representatives of the parties hereto and, as applicable, approved as required under the Palo Alto Municipal Code or Charter. SECTION 18. INSURANCE. CONSULTANT, at its sole cost and expense, shall obtain, as soon as practicable following the date of this Agreement, and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "C". CONSULTANT shall be responsible for ensuring that its subcontractors retained to perform Services under this Agreement, if any, shall obtain and maintain in full force and effect during the term of the subcontractor's engagement, the insurance coverage described in Exhibit "C," as well as a policy endorsement naming CITY as an additional insured under any policies required in this Section 18. 18.1. 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. 18.2. CONSUL TANT shall file with CITY certificates evidencing such insurance as soon as practicable following the date of execution of this Agreement but in any event prior to the first day any of CONSULTANT'S obligations are performed hereunder. The certificates shall be subject to the approval of CITY's Risk Manager and shall contain an endorsement stating that the insurance is primary coverage and shall 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 five (5) 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. 18.3. The procuring of such required policy or policies of insurance will not be construed to limit either party's liability hereunder nor to fulfill the indemnification provisions of this Agreement. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may terminate this Agreement or suspend Page 7 of25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 18 Packet Pg. 237 of 302 the performance of the Services, in whole or in part, in the event of a material breach of CONSULTANT's obligations to CITY under this Agreement, which breach is not cured by CONSULTANT within (60) days of receipt of written notice from CITY to CONSULTANT detailing the nature of such failure. The City Manager may terminate this Agreement without cause by giving one-year prior written notice thereof to CONSUL TANT. 19.2. CONSUL TANT may terminate this Agreement or suspend its performance of the Services, in whole or in part, in the event of a material breach of CITY's obligations to CONSULTANT under this Agreement, which breach is not cured by CITY (i) with respect to material breach of CITY's payment obligations herein, within thirty (30) days of receipt of written notice from CONSULTANT to CITY, or (ii) with respect to material breach of all other CITY obligations hereunder, within sixty (60} days of receipt of written notice from CONSUL TANT to CITY detailing the nature of such breach . CONSULTANT may terminate this Agreement without cause by giving one-year prior . written notice thereof to CITY. 19.3. In the event of any suspension or termination hereunder, CITY shall pay CONSULTANT for the Services rendered and materials delivered to CITY (i) on or before the effective date of such suspension or termination and (ii) in accordance with this Agreement. CITY shall pay such amounts to CONSULTANT within thirty (30) days after receipt of CONSULTANT's invoice. To the extent that CITY has prepaid any fees, CONSULTANT shall fund to CITY any prepaid fees on a pro-rata basis to the extent such fees are attributable to the period after the termination date, and CITY shall have no obligation to pay unpaid fees that would have become due during the remaining Term had this Agreement not been terminated . 19.4 The following Sections shall survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.3, this 19.4, 20, 25, and 27. SECTION 20. NOTICES. Any notice provided for in this Agreement shall be in writing and shall be either (i} personally delivered, (ii) received by certified mail, return receipt requested, or (iii) sent by reput~ble overnight courier service (charges prepaid) to the recipient at the address indicated below. To CITY: City of Palo Alto, City Manager's Office 250 Hamilton Ave., Palo Alto, CA 94301 With a copy also to the CITY's Project Manager. To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above . Notices will be deemed to have been given hereunder {i) when delivered personally to the recipient, (ii) one (1) business day after being sent to the recipient by reputable overnight courier service (charges prepaid) or (iii) five (5) business days after being mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid . SECTION 21. CONFLICT OF INTEREST 21.1. In accepting this Agreement, CONSUL TANT covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. Page 8 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 19 Packet Pg. 238 of 302 21.2. CONSUL TANT further covenants that, in the performance of this Agreement, it shall not employ subcontractors or other persons or entities having such an interest. CONSULTANT celtifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision shall be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. CITY agrees and acknowledges that, as of the date of hereof, CONSULTANT is not a "Consultant" as that term is defined by the Regulations of the Fair Political Practices Commission, and that therefore CONSULTANT shall not be required to file the financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSUL TANT acknowledges that it has read and understands the provisions of Section 2.30.51 O of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY's Environmentally Preferred Purchasing policies which are available at CITY's Purchasing Department (and copies of which have been provided to CONSULTANT by CITY), incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY's Zero Waste Program . Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements: (a) All printed materials provided by CONSUL TANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY's project manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division's office, and a copy of the current policy has been provided to CONSULTANT by CITY. (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. Page 9 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 20 Packet Pg. 239 of 302 SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSUL TANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the CITY, CONSUL TANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.30 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 section4.62.060. 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. This Agreement shall 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. The Services are not subject to prevailing wages . CONSULTANT is not - required to pay prevailing wages in the performance of the Services in accordance with applicable law including without limitation SB 7 . SECTION 27. MISCELLANEOUS PROVISIONS. 27 .1. This Agreement shall be governed by the laws of the State of California without regard to its conflict of laws provisions . 27 .2. In the event that an action is brought, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Santa Clara, State of California . 27 .3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys ' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties. 27.4 . This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties . 27 .5. The covenants, terms, conditions and provrsrons of this Agreement shall apply to, and shall bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 27.6 . If a court of competent jurisdiction finds or rules that any provis ion of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto shall remain in full force and effect. Page 10 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 21 Packet Pg. 240 of 302 27.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and shall be deemed to be a part of this Agreement. 27.8. In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT's proposal (if any), this Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT's proposal, the exhibits shall control. 27.9. If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.S(d) about a California resident ("Personal Information"}, CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform CITY as soon as practicable, but no later than 24 hours after learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without CITY's express written consent. 27 .10. All unchecked boxes do not apply to this Agreement. 27 .11. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 27.12. This Agreement may be signed in multiple counterparts, which, when executed and delivered by the parties hereto, shall together constitute a single binding agreement. This Agreement may be signed using the City's Docusign platform . {signature page follows] Page 11 of25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 22 Packet Pg. 241 of 302 CONTRACT No. Cl9174493 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO AL TO PETS IN NEED City Manager Officer 2 APPROVED AS TO FORM: By~ Attachments: EXHIBIT "A": EXHIBIT "B": EXHIBIT "C": EXHIBIT "D": .. . Name: ,. ;-A Title~·,#'/c0~ SCOPE OF SERVICES COMPENSATION INSURANCE REQUIREMENTS USE OF PREMISES Page 12 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 23 Packet Pg. 242 of 302 EXHIBIT 11 A" SCOPE OF SERVICES PETS IN NEED ("CONSULTANT") agrees to provide Animal Shelter Services as described in Section II below at the Palo Alto Animal Shelter, 3281 East Bayshore Road, Palo Alto, CA, for the City of Palo Alto ("CITY") and the Contract Cities . CITY agrees to perform the obligations as described in Section Ill below. I. DEFINITIONS The following terms as used in this Exhibit "A" Scope of Services shall have the meaning provided below: A . "Diseased and crippled animal" means those animals which are known or believed to be infected with a~y dangerous or communicable disease, or which have an incurable , crippled condition or which are afflicted with any painful disease which is believed to be incurable . B. "Dangerous animal" means any dog or other animal which demonstrates a propensity to assault, bite, scratch or harass people or other animals without provocation. There shall be a rebuttable presumption that any animal that bites a person is a dangerous animal. Capitalized terms used but undefined herein shall have the meanings set forth in the Agreement for Professional Services (this "Agreement") to which this Exhibit is attached and of which it forms a part. II. PETS IN NEED RESPONSIBILITIES: 1. Animal Shelter Services. CONSUL TANT shall perform the following sheltering services and shall provide shelter supplies, animal attendants , supervisors and administrative personnel, and any other personnel, supplies and equipment, reasonably required to perform the following services ("Shelter Services"): a) Shelter of abandoned, surrendered, impounded, lost or stray domestic animals brought to the shelter by CITY or its Contract Cities, its residents, or personnel. b) CONSULTANT may shelter and provide services to animals outside the scope of paragraph (a) above rnon-City animals") including moving animals between the Palo Alto Animal Shelter and Pets In Need Redwood City facility on a space-available basis and at CONSULTANT's sole expense for all costs, including labor, equipment, supplies, food, and medication . At no time shall animals within the scope of paragraph (a) above be denied services due to services provided to non-City animals at the Pets in Need Palo Alto Animal Shelter. c) For the avoidance of doubt, to the maximum extent Page 13 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 24 Packet Pg. 243 of 302 permissible by law, CONSUL TANT shall have exclusive discretion over how long an animal is sheltered, including exclusive discretion to shelter an animal for a longer period than the statutory minimum number of days This section shall not be interpreted to authorize funds in addition to those specified in this Agreement, and CONSULTANT shall be responsible for managing the length of animal sheltering within the funds and resources authorized by this Agreement. d) Quarantine of biting animals. e) Rabies testing of suspect animals. f) Provision for reclaim of abandoned, lost or stray domestic animals during established business hours. g) Shelter staff shall make every effort to identify lost animals (through ID tags and microchips) and to contact owners. h) Be CITY's and Contract Cities' main point of contact (by phone, in-person, and electronic means) regarding animal shelter services, including inquiries regarding missing pets. i) Provide medical evaluation and treatment, if necessary, to all incoming animals. This includes vaccinations, and spay and neuter surgeries to domestic animals. j) Euthanasia and disposal of abandoned, lost, impounded, or stray domestic animals that are unclaimed by their owners and found to be diseased and crippled and/or dangerous as defined by Palo Alto Municipal Code and California State Law. k) For purposes of clarity, CONSUL TANT shall not be required to provide owner-requested euthanasia at any time, and CITY acknowledges that CONSUL TANT has elected not to provide or subcontract this service. I} CONSULTANT shall maintain a public website, separate from the CITY's website, with information including without limitation: shelter hours, volunteer opportunities, adoption information, medical services offered and information about those services and contact information. m} Consultant shall allow CITY Animal Control Officers access to the shelter at all times for purposes of dropping off animals and provide reasonable accommodation for Animal Control Officers to begin and end their shifts, and complete administrative work in the shelter. n) CONSULTANT shall maintain, repair and replace all surgical room equipment, cages, hoses, and other equipment at the facility. o) CONSULTANT shall comply with all federal, state, and local laws in effect applicable to the Services upon commencement of the provision of the Services, and shall be subject to inspection by the CITY and other duly authorized federal, state, and local authorities to insure Page 14 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 25 Packet Pg. 244 of 302 such compliance. This includes the applicable provisions of Palo Alto Municipal Code Title 6, as amended from time to time. For the avoidance of doubt, this provision shall not be construed to expand the scope of the Services as expressly set forth in this Exhibit "A". p) CONSULTANT shall use commercially reasonable efforts to offer comprehensive volunteer and educational programs which may include, without limitation: animal fostering programs, dog walker programs, and animal care trainings. q} When appropriate, in CONSULTANT'S sole discretion, CONSULTANT may partner and/or coordinate with adoption programs, rescue groups, and other no-kill shelters to maximize the shelter's adoption rate and/or place animals in suitable foster care. CONSULTANT shall seek CITY's approval for partnerships in which CONSUL TANT pays or receives money or other financial consideration, solely to the extent that such partnership relates to CONSULTANT's performance of the Services. CITY shall approve or deny in writing any such request within thirty (30) days after receipt of such request. r) Develop and maintain communication with CITY by: 1. Responding in a timely.manner to emails and phone calls. 2. Communicating and resolving issues and concerns promptly. s} Develop, in cooperation with CITY, a feral cat plan. The plan shall include how PIN handles feral cats, spay/neuter provisions, and release of feral cats. CONSULTANT shall not release feral cats within the City of Palo Alto or any of its Partner Cites. t) Develop, in cooperation with CITY, a disaster preparedness plan . 2. Medical Services a) CONSUL TANT shall provide supplies, and professional and trained personnel, employed or under subcontract or contract, necessary to perform the following services ("Medical Services"): Provision of veterinarian services twenty-four (24} hours per day to treat and provide veterinarian care for impounded animals, including for animals picked-up by Animal Control Officers. CONSULTANT may, in its sole discretion and at its sole expense, arrange after-hours emergency care through any veterinary subcontractor. b) Monitor quarantined animals. c) For a fee, conduct vaccination clinics and have available, free of charge to the public, rabies control information. d) Conduct microchipping. e) For a fee, which shall be posted on CONSULTANT's website, Page 15 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 26 Packet Pg. 245 of 302 at the same rate established for City residents and Contract Cities, provide access to the CONSULTANT's low cost spay and neuter clinic. f) The City's Animal Control Officers shall be licensed through CONSULTANT'S medical authority to administer euthanasia as necessary for animals that are unclaimed by their owners and found to be diseased and crippled and/or dq11gerous as defined by Palo Alto Municipal Code. g) Comply with all laws requiring reporting of animal-borne diseases, including rabies. This includes Municipal Code section 6.32.020, as amended from time to time . 3 . Operating Schedules a) CONSUL TANT shall provide Shelter Services for the animals twenty-four (24) hours a day, seven (7) days a week. b) CONSULTANT shall provide emergency veterinary services in accordance with Section 597(f) of the California Penal Code . c) CONSULTANT shall have shelter staff on site for care of shelter animals seven (7) days per week, 365 days per year. d) CONSULTANT shall have business offices and public access areas of shelter to be open to the public on a schedule designed to benefit the public and facilitate the services established in this Agreement, provided that the public hours and access be a minimum of six (6) days per week and forty (40) hours per week . CONSULTANT shall post the public hours on its website, and inform CITY and Contract Cities in writing of any change in hours . e) CITY acknowledges and agrees that, until the renovations described in Exhibit Dare completed, CONSUL TANT may be unable to be fully staffed and operational in accordance with this Paragraph 3, and may request to operate at a reduced schedule at its reasonable discretion. Consultant's project manager shall make any such request to City's project manager, whose consent shall not be unreasonably denied, delayed, or conditioned. f) CONSUL TANT shall observe the following holiday closures for public hours: January 1 (New Year's Day) Martin Luther King's birthday Memorial Day July 4th (Independence Day) Labor Day Thanksgiving Day Day after Thanksgiving Christmas Eve (1/2 Day) Christmas Day 4 . Dead Animal Services a) CONSULTANT shall provide storage facilities, disposal Page 16 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 27 Packet Pg. 246 of 302 mechanisms, administrative personnel, and any other personnel, supplies and equipment reasonably required to perform the following services ("Dead Animal Services"): i. Identification of and notification to the owner of the dead animal, whenever possible; and ii. Disposal of the body of the dead animal. CONSUL TANT shall offer animal owners the option to pay for cremation services, in which case, CONSUL TANT shall arrange for cremation with the appropriate subcontractor. b) CONSULTANT shall subcontract with one or more subcontractors for the maintenance of a dead animal storage facility as well as collection of dead animals and maintenance of the facility and equipment, all at CONSULTANT's sole expense. 5. Wildlife a) The impoundment of wildlife shall be managed by CONSUL TANT staff. An assessment of wildlife shall be done by medical staff, if necessary. If the animal is severely injured or sick, a licensed veterinarian shall be consulted, and the case shall be fully documented in accordance with AVMA guidelines. This Agreement assumes that all wildlife animals will continue to be transferred to the Peninsula Humane Society at no cost to the CITY or to CONSUL TANT, as set forth in the Memorandum of Understanding between CONSUL TANT and Peninsula Humane Society dated November 17, 2017. Should Peninsula Humane Society request fees for wildlife intake, CONSULTANT and the CITY shall negotiate in good faith to amend this Agreement per Section 27 .4 herein, to provide for the reimbursement by CITY to CONSULTANT of such fees (upon documentation of such fees by CONSULTANT reasonably satisfactory to CITY). 6. Records Management a) CONSUL TANT and CITY's Animal Control shall maintain joint access to the Chameleon database, as provided for in this section . CONSUL TANT is responsible for keeping the Chameleon database updated in a timely fa~hion. Chameleon data is designated "For Official Use Only," meaning, CONSUL TANT may only use such data for the performance of this Agreement, and not for marketing or any other purposes without the prior written consent of the CITY's City Manager or designee. Annual maintenance fees for the Chameleon software shall be paid by CITY. Repair and replacement cost of the server and supporting hardware, if any, shall also be paid by CITY. CONSUL TANT shall not have access to certain areas of the database, such as saved criminal information (as required by law). CITY shall work with the database programmer/vendor to ensure that such areas of the Page 17 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 28 Packet Pg. 247 of 302 database are not accessible by CONSULTANT. All data entered into the Chameleon database by any party shall be property of CITY. b) Monthly Report i. CONSUL TANT shall deliver to CITY during the term of this AGREEMENT, and within thirty (30) days of the end of each month, a monthly Animal Shelter and Impound Report summarizing monthly and year-to-date services provided by CONSULTANT for CITY. This report shall include, but not be limited to, the following information: ( 1) Licensing statistics (2) Medical statistics including spay and neuter, microchips, and vaccinations (3) Volume of animals in and out of facility by type of animal and type of outcome. (4) For each animal, which city in which it was picked up (if known). c) Financial Reporting i. CONSULTANT shall deliver to CITY during the term of this Agreement, and within ninety (90) days of the end of each May, an audited financial report covering CONSULTANT's operation of the Palo Alto Animal Shelter. d) Retention of Records, Right to Monitor and Audit i. CONSUL TANT shall maintain records relating to CONSUL TANT's operation of the Palo Alto Animal Shelter for a period of four (4) years after the expiration or termination of this Agreement or until any audits or reviews are completed, whichever comes later, and such records shall be subject to examination and/or audit of CITY, a Federal granter agency, and the State of California for a period of four (4) years after the expiration or termination of this Agreement or until any audits or reviews are completed, whichever comes later. ii. Records/accounts relating to CONSULTANT's operation of the Palo Alto Animal Shelter shall be open and accessible to inspection upon reasonable notice during normal business hours throughout the term of this Agreement and for a period of four (4) years thereafter or until any audits or reviews are completed, whichever comes later. iii. Parties, upon request by either party to the other, shall meet on occasion to consider revisions which may be needed to the reporting forms created to document performance of the Services provided. 7. Fundraising, Marketing and Branding a) CONSULTANT shall create and manage fundraising, marketing, volunteer development and education programs. Local volunteer Page 18 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 29 Packet Pg. 248 of 302 groups shall be integrated into fundraising and other activities and events when reasonably possible. The "Pets In Need Palo Alto Animal Shelter" shall be the initial brand name of the shelter to be operated by CONSULTANT pursuant to this Agreement, and any logo or name change shall be approved in writing by CONSUL TANT and the CITY's City Manager or designee prior to use. 8. Licensing and other fee collection a) CONSULTANT shall charge fees for services according to the CITY's municipal fee schedule or according to state or local laws. Fees for any services not covered by CITY's municipal fee schedule or state or local laws shall be set by CONSUL TANT. CONSUL TANT shall take CITY's comments into consideration when setting such fees. CITY shall take CONSUL TANT's comments into considefation when setting its municipal fee schedule. b) CONSUL TANT shall manage dog licensing including processing, issuance, and renewals on behalf of CITY and Contract Cities. Licensing information shall be included on all Incident Reports and, additionally, provided to CITY on an as requested basis. CONSULTANT shall collect all associated license fees on behalf of CITY, at the fee amounts set by CITY. Licensing includes the licensing of dogs as defined in Municipal Code Chapter 6.16 as amended from time to time. c) CONSUL TANT shall process citation fees, and shall remit 100% of these fees to the CITY on a quarterly basis. PETS IN NEED shall process and retain all other fees and revenues, including without limitation adoption fees, spay, neuter, impoundment, permit, license, and other fees as listed in the municipal fee schedule. 9. Contract Cities; WeCare Alliance a) CITY and CONSULTANT shall provide services to the City of Los Altos and the Town of Los Altos Hills (the "Contract Cities 0 ) pursuant to the CITY's amended Regional Animal Care and Control contracts approved by City Council on June 2, 2014. These contracts are valid through June 30, 2019 with an option for an additional five-year extension . The Parties agree that this Agreement assumes that the Contract Cities' contracts will be in effect during the entire term of this Agreement. b) CITY shall consult with CONSUL TANT should the contracts with the Contract Cities be amended or terminated, provided that if any such amendment or termination is reasonably expected to result in increased costs to CONSULTANT, such amendment or termination (if initiated by CITY) shall be subject to Page 19 of25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 30 Packet Pg. 249 of 302 CONSUL TANT's prior written consent. CONSUL TANT shall notify CITY in writing of its consent or lack thereof within forty-five (45) days after receipt of CITY's written request, which request shall include the precise language of such amendment or all relevant details of such termination (whichever applies}. If CONSULTANT consents, the parties shall amend this Agreement (i} to adjust the scope of Services accordingly and (ii) to cover any reasonable cost increases to CONSUL TANT. c) CITY may contract with additional cities, subject to CONSULTANT's prior written consent. CONSULTANT shall notify CITY in writing of its consent or lack thereof within forty five (45) days after receipt of CITY's written request, which request shall include the text of such proposed contracts. If CONSUL TANT consents, CONSUL TANT and CITY shall amend this Agreement (i) to adjust the scope of Services accordingly and (ii) to cover any reasonable cost increases to CONSULTANT. d) CONSUL TANT shall continue membership in the WeCare Alliance (www.sheltersfirst.org}. 10. Cost Overruns or Changes a) If CITY or state laws are passed during the term of this Agreement that require a greater level of service, CITY and CONSUL TANT agree to negotiate in good faith regarding the reimbursement of CONSULTANT for additional costs associated with implementing the new laws. If Parties are unable to agree on reimbursement costs, CONSUL TANT shall document the increased costs and submit to the City Auditor. The City Auditor shall conduct an independent audit. Parties agree to accept the City Auditor's determination of any increased costs. b) If current state laws are amended, repealed, otherwise changed or suspended during the term of this Agreement that reduce, alter, or remove existing relevant mandates, either party may require the other party to meet to discuss possible financial and operational impacts of levels of service per the change in law, including but not limited to any decrease in contract amounts paid to CONSULTANT, provided that no such decrease shall be effective unless agreed by CONSULTANT. 111. CITY RESPONSIBILITIES. CITY shall: 1. Provide an adequate and safe facility for CONSULTANT to perform the Services. 2. Provide Animal Control Officers (ACOs) and their services for CITY and Contract Cities . This shall include maintenance of ACO vehicles Page 20 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 31 Packet Pg. 250 of 302 and equipment. Establish fees for dog licensing and animal impounding. 3. With regard to the shelter facility, provide and/or pay for utilities, taxes, electricity, water, gas, waste water, recycling, waste (not animal disposal), internet, Chameleon software/database and associated support, and Chameleon server hardware and support (if any), which collectively is estimated to cost approximately $55,000 peryear. 4. Develop and maintain proactive and consistent communication and rapport with CONSUL TANT a) Respond in a timely manner to emails and phone calls b) Communicate and resolve issues and concerns immediately c) Provide excellent customer service to CONSUL TANT staff and customers 5. Develop, in cooperation with CONSULTANT, a disaster preparedness plan 6. Administer the agreements between the CITY and the Contract Cities regarding animal shelter services. Page 21 of25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 32 Packet Pg. 251 of 302 EXHIBIT "B 11 COMPENSATION CITY agrees to compensate CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the schedule below. SCHEDULE Year1 Year2 Year3 Year4 Years Sub-total Basic Services Reimbursable Expenses TO EQUAL AND NOT TO EXCEED (SUBJECT TO SECTION 19 "TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES") $708,000.00 $663,000 .00 $676,260.00 $689,785.20 $703,580.90 $3,440,626.10 $0.00 Total Basic Services and Reimbursable expenses $3,440,626.10 Contingency Funds $200,000.00 (not to exceed $40,000 per year) Additional Compensation for Renovation Delays $60,000.00 Maximum Total Compensation ONE-TIME ADVANCE (not to exceed $5,000 per month; see Exhibit D, Section 15.7) $3,700,626.10 Simultaneous with the execution of this Agreement, CITY shall pay to CONSULTANT One Hundred Seventy Eight Thousand dollars ($178,000) as an advance against the first three months of CONSULTANT's fee. CONSULTANT shall not submit an invoice for the remainder of its fee for the third month until the end of such third month. CONTINGENCY FUNDS CITY shall provide contingency funds to CONSUL TANT in the following circumstances, subject to written approval by the CITY's project manager, and to equal and not to exceed the amount in this Exhibit C: 1. CITY shall provide contingency funds for after-hours and emergency veterinary care if: a. CONSULTANT has already spent at least $10,000 in the past 12 months on a rolling basis on after-hours or emergency veterinary care that was reasonable based on AVMA guidelines; and b. The emergency or after hours treatment being sought is reasonable based Page 22 of 25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 33 Packet Pg. 252 of 302 on AVMA guidelines. 2. CITY shall provide contingency funds for hoarding cases if: a. CONSUL TANT has already served more than 600 animals from the CITY or the Contract Cities in the past 12 months; and b. The hoarding case involves a minimum of 12 animals brought at once that are expected to stay in the facility for at least 30 days each. 3. CITY shall provide contingency funds for the actual costs of wildlife intake at the Peninsula Humane Society if: a. The Peninsula Humane Society begins charging for the costs of wildlife services; and, b. This Agreement has not yet been amended to reflect the additional costs of such services. 4. CONSULTANT may also request contingency funds in other unforeseen circumstances. To request contingency funds, the CONSULTANT shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, for such services. In addition to the factors above, CITY may consider whether contingency funds are appropriate within existing funding and workload, and contingency funds shall not be released if CONSULTANT has not exhausted unused or unallocated funds. The CITY shall notify CONSULTANT in writing of its approval or lack thereof within ten (10) days after the date of CONSUL TANT's proposal. If CITY's project manager does not approve CONSUL TANT's request, CONSUL TANT may appeal that decision to the City Manager. If authorized by CITY, the contingency services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's project manager and CONSULTANT, and payment shall be made to CONSUL TANT, no later than ten (10) days after the date of CITY's authorization. Contingency funds are subject to all requirements and restrictions in this Agreement. ADDITIONAL COMPENSATION FOR RENOVATION DELAYS The City shall pay Consultant up to $5,000 monthly for up to twelve consecutive months pursuant to the terms of Exhibit D, Section 15.7 ("Additional Compensation for Renovation Delaysa) of this Agreement. REIMBURSABLE EXPENSES No Reimbursable Expenses are authorized by CITY through this Agreement, unless pursuant to a written amendment to this Agreement as provided for herein . ADDITIONAL SERVICES No Additional Services are authorized by the CITY through this Agreement, unless pursuant to a written amendment to this Agreement as provided for herein . Page 23 of25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 34 Packet Pg. 253 of 302 REQUIRED YES YES YES YES YES YES INSURANCE YES YES EXHIBIT 11C" INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A :VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: MINIMUM LIMITS TYPE OF COVERAGE REQUIREMENT EACH OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY BODILY INJURY $5,000,000 $5,000,000 GENERAL LIABILITY. INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $5,000,000 $5 ,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED , NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000 ,000 BODILY INJURY AND PROPERTY $1 .000 ,000 $1,000,000 DAMAGE, COMBINED PROPERTY INSURANCE ALL RISK, FULL REPLACEMENT INSURANCE \/.II.I I I&: BUSINESS INTERRUPTION PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN ALL DAMAGES $2,000,000 APPLICABLE), AND NEGLIGENT PERFORMANCE THE CITY OF PALO AL TO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN. IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONTRACTORS, 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 PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS Page 24 of25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 35 Packet Pg. 254 of 302 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 CONSULTANT 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, CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITIEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITIEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. II. INSURANCE COVERAGE MUST INCLUDE: 1. A PROVISION FOR AWRITIEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND 2. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT'S AGREEMENT TO INDEMNIFY CITY. 3 . DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. Vendors are required to file their evidence of insurance and any other related notices with the City of Palo Alto at the following URL: https://www.planetbids.com/portal/portal.cfm?Company1D=25569 OR http://www.cityofpaloalto.org/qov/depts/asd/planet bids how to.as Q Page 25 of25 Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 36 Packet Pg. 255 of 302 . EXlllBITD USE OF PREMISES SECTION 1. USE OF PREMISES. Consultant shall have the exclusive right to enter and use the Premises during the tenn of this Agreement for the sole purposes of perfonning the Services and fulfilling Consultant's obligations under the Agreement, as detailed in this Section 1 ("Use of Premises") of this Exhibit D. Consultant shall have the right to pennit Consultant's employees, agents and subcontractors to enter and access the Premises for the sole purposes of perfonning the Services and fulfilling Consultant's obligations under this Agreement. Consultant shall have the right to exclude third parties and trespassers onto the Premises. Notwithstanding the foregoing, City's Animal Control Officers and their supervisors have the right to enter the Premises at any time. In addition, City has the right to enter Premises at any time for the purposes of inspection, emergency response and the perfonnance of City obligations under this Agreement. Consultant shall, at City's request, promptly remove any of Consultant's property or Consultant-installed improvements on the Premises to allow City access to the utilities or other City owned facilities/property. In the event City deems it necessary, for purposes of health, safety or building code requirements, in City's sole discretion, City shall have the right to move, alter or remove any such property or improvements and City shall be responsible for promptly restoring or returning the same to its prior condition. SECTION 2. CONDITION OF PREMISES, CLEANING AND MAINTENANCE. 2.1 Condition of Premises, Routine Interior Cleaning and Janitorial Activities. In connection with its use, Consultant shall maintain the Premises in a clean, safe, secure, orderly, and sanitary condition, consistent with a commercially reasonable standard for a well-run animal shelter facility, so far as the Premises may be affected by Consultant's activities under this Agreement. Specifically, Consultant shall undertake routine cleaning and janitorial activities as necessary to maintain the interior of the Premises in an orderly condition, as above, provided that nothing in this section shall obligate Consultant to make any alterations or capital improvements to the Premises. Consultant shall maintain all of its own equipment, furnishings and trade fixtures upon the Premises which are required for the maintenance and operation of the Palo Alto Animal Shelter. 2.2 Maintenance and Utilities. Outside of Consultant's responsibilities for routine interior cleaning and janitorial activities in Section 2.1 of this Exhibit, City shall be responsible for the maintenance of the interior and exterior of the Premises and the surrounding grounds, including (without limitation) the maintenance, repair, and replacement of the roof, building structure, improvements, and the HV AC, electrical, plumbing, and other building systems. City shall perfonn any alterations to the Premises (1) required by applicable laws or laws of general application (i.e. ADA, seismic regulations, and building codes) and (2) to ensure that utilities (including, without limitation, water, gas, and electricity) are available to the Premises, in amounts sufficient for Consultant to perform the Services. In the event of a utilities outage, the City will work diligently to restore availability as quickly as possible. City shall promptly perform its obligations under this Section 2.2 ("Maintenance and Utilities"). In the event of a maintenance issue that impacts the health and safety of the operations, the City shall respond within 24 hours of receipt of notice from Consultant to develop an action plan to address the issue in an expedited timeframe. SECTION 3. HAZARDOUS MATERIALS. 3.1 Environmental Laws. "Environmental Laws" means any applicable federal, state or local laws and regulations relating to Hazardous Material (including, without limitation, its use, handling, transportation, production, disposal, discharge or storage) or to human health and safety, industrial hygiene or environmental conditions in, on, under or adjacent to the Premises, including without limitation soil, air and groundwater conditions. Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 37 Packet Pg. 256 of 302 3.2 Hazardous Materials. "Hazardous Materials" means any substance, material, waste, pollutant or contaminant which is regulated by applicable Environmental Laws as being hazardous, toxic, flammable, carcinogenic, explosive or radioactive, or is potentially injurious to the public health, safety or welfare or the environment. 3.3 Release. "Release," when used with respect to Hazardous Materials, means any actual or imminent spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, depositing, or disposing on, in, under or adjacent to the Premises, or any improvements constructed hereunder by or on behalf of the Consultant, or in, on, under or adjacent to the Premises or any portion thereof in violation of Environmental Laws. 3.4 Remediation. "Remediation" (and derivatives thereof such as an without limitation "remediate"), when used with reference to Hazardous Materials, means any activities undertaken to clean up, remove, contain, treat, stabilize, monitor or otherwise control Hazardous Materials located in, on or under or adjacent to the Premises, or which have been or are being, or risk of being Released into the environment. Remediation includes, without limitation, those actions included within the definition of "remedy" or "remedial action" in California Health and Safety Code Section 25322 and "remove" or "removal" in California Health and Safety Code Section 25323, and as may be amended from time to time. 3.5 No Hazardous Materials. Consultant covenants and agrees that Consultant shall not, nor shall Consultant permit any of Consultant's officers, employees, agents, or subcontractors, to cause or pe1mit any Hazardous Material to be brought upon, kept, used, stored, generated, deposited or disposed of in, on, under or adjacent to the Premises in violation of Environmental Laws, provided that Consultant may store and use such substances in and on the Premises in such limited amounts as are customarily used in the operation of an animal shelter such as the Premises so long as such storage and use is at all limes in full compliance with all applicable Environmental Laws and permits. Consultant shall notify the City as soon as possible within 24 hours if and when it learns or has reason to believe that there has been any Release of Hazardous Material in, on, under or adjacent to the Premises. The City may request Consultant to provide adequate information for City to determine that any Hazardous Material permitted hereunder is being handled in compliance with all applicable Environmental Laws, and Consultant shall promptly provide all such information. In the event that any Hazardous Material is Released in, on, under or adjacent to the Premises by Consultant or any of Consultant's officers, agents, employees, or subcontractors, Consultant shall promptly undertake all necessary actions to Remediate the contaminating Hazardous Material from the Premises and to return the Premises and other City property affected thereby, to the condition existing prior to such Release, or its reasonable equivalent or better, and otherwise investigate and Remediate the Release in accordance with applicable Environmental Laws, at no cost to City. Notwithstanding the foregoing, and excluding Consultant's notice obligations under this Section, Consultant shall have no Remediation obligations under this Section for (i} the mere discovery of any preexisting condition, or (ii) any conditions arising out of any action or inaction of City, its Council members, officers, employees, agents or subcontractors, and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors, (iii) any conditions arising out of any action or inaction of third party vendors that are not an agent or subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors, (iv) any conditions arising out of any action or inaction of a third party, not an agent or subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors. 3.6 Hazardous Material Indemnity. Consultant shall, on behalf of itself and its successors and assigns, indemnify, defend and hold harmless City, its Council members, officers, employees and agents ( each a "City Indemnified Party"} from and against any and all claims, liabilities, penalties, forfeitures, losses and/or expenses (including, without limitation, diminution in value of the Premise, damages for the loss or restriction on use of the rentable or usable space or of any amenity of the Premise, Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 38 Packet Pg. 257 of 302 damages arising from any adverse impact or marketing of the Premises and sums paid in settlement of claims, response costs, cleanup costs, site assessment costs, reasonable attorneys' fees, reasonable expert fees, judgments, administrative rulings or orders, fines, penalties, costs of death of or injury), to any person or damage to any property whatsoever (including, without limitation, groundwater, sewer systems and atmosphere), arising from, or caused or resulting, in whole or in part, directly or indirectly, by the presence or discharge in, on, under or adjacent to the Premises by Consultant, or Consultant's officers, employees, agents or subcontractors, of Hazardous Material, or by any such party's failure to comply with any applicable Environmental Law, whether knowingly or by strict liability. Such Consultant indemnity obligations include, without limitation, and whether foreseeable or unforeseeable, all costs of any Hazardous Materials management plan, closure, investigat.ion, repairs, and Remediation and restoration of the Premises to its prior condition. For purposes of such indemnity obligations, any acts or omissions of Consultant, its officers, employees, agents, or subcontractors (whether or not they are negligent, intentional, willful or unlawful) shall be strictly attributable to Consultant. Consultant shall provide the City with written notice of and afford City a full opportunity to participate in any discussions with governmental regulatory agencies regarding any settlement agreement, Remediation or abatement agreement, consent decree, permit, approvals, or other compromise or proceeding involving a Release of Hazardous Materials in, on, under, or adjacent to the Premises by Consultant or Consultant's officers, employees, agents, or subcontractors as detailed in this Section. Notwithstanding the foregoing, Consultant shall have no obligation to indemnify the City or any City Indemnified Party for (i) the mere discovery of any preexisting condition, or (ii) any conditions arising out of any action or inaction of City, its Council members, officers, employees, agents or subcontractors and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors, (iii) any conditions arising out of any action or inaction of third party vendors that are not an agent or subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors, (iv) any conditions arising out of any action or inaction of a third party, not an agent or subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors. SECTION 4. DAMAGE TO UTILITIES. Consultant shall exercise reasonable care to not do anything in, on, under or adjacent to the Premises that damages any City utilities (e.g. gas, water, wastewater, fiber, electric) located in, on, under or about the Premises. Consultant agrees to reimburse City within thirty (30) calendar days of City's written request for any damages caused to City owned utilities caused by a failure of PIN to exercise reasonable care the Premises. SECTION 5. [RESERVED BY AGREEMENT OF THE PARTIES] SECTION 6. SURRENDER; DUTIES UPON TERMINATION OR EXPIRATION. Upon the expiration or earlier termination of this Agreement, Consultant shall immediately surrender the Premises in the same condition as received upon completion of the improvements detailed in this Agreement and any other improvements completed by City during the term of this Agreement (excepting reasonable wear and tear; casualty not caused or contributed to by Consultant or its officials, employees, agents or subcontractors; or condemnation not caused or contributed to by Consultant or its empl9yees, agents or subcontractors), broom cleaned, walk-through with City staff completed, and free from hazards that are not pre-existing and were not introduced by the City or its officials employees, agents or subcontractors and clear of all debris that is not pre-existing and was not introduced by the City or its officials, employees, agents or subcontractors. At such time, Consultant shall remove all of its property from the Premises hereunder, and shall repair, at its cost, any damage to the Premises caused by such removal. Consultant's obligations under this Section shall survive any termination of this Agreement. Consultant shall deliver to the City the originals of all books, permits, plans, records, licenses, contracts, and other documents pertaining to the Premises and its operation, any insurance policies, bills of sale or other documents evidencing title or rights of the City, and any and all other records or documents pertaining to the Premise, whether or not enumerated herein, which are requested by the City or necessary or desirable for the ownership and operation of the Premise, which are in the Consultant's possession. Consultant shall also deliver to City all keys, alarm codes, passwords, and other items used to secure the Premise . Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 39 Packet Pg. 258 of 302 Consultant further agrees to do all other reasonable things reasonably necessary to cause an orderly transition of the management and operation of the Premises. The provisions of this Section shall survive the expiration or earlier termination of this Agreement until the obligations of the Consultant under this Section are fulfilled to the reasonable satisfaction of the City. SECTION 7. REPAIR OF DAMAGE. If any portion of the Premises or any property of City located in, on, under or adjacent to the Premises is damaged or at risk of damage by any of the activities conducted by Consultant or anyone acting by or through Consultant, Consultant shall immediately notify City in writing of such damage or risk of damage. City may remedy, but shall not be obligated to remedy, such damage or risk of damage at Consultant's sole cost, or City may elect to witness Consultant's repair work. In the event City elects not to remedy such damage or threat, Consultant shall repair any and all such damage and restore the Premises or such property to its previous condition subject to City's inspection, review and approval. SECTION 8. CITY'S RIGHT TO CURE DEFAULTS BY CONSULTANT. If Consultant fails to perform any of its obligations under this Exhibit D to restore the Premise, remove or alter improvements or repair damage, or if Consultant defaults in the performance of any of its other obligations under this Exhibit D within a reasonable time after demand by City, then City may, at its sole option, remedy such failure at Consultant's expense; within ten ( I 0) days of receipt of a bill, Consultant shall promptly reimburse the City's actual reasonable costs (including without limitation all costs, damages, expenses or liabilities incurred by City, reasonable attorneys', experts' and Consultants' fees) in remedying or attempting to remedy such failure, or City may reduce any outstanding amount due to Consultant under the Agreement by the cost to City of such remedial action. In the alternative, the cost thereof may be made a lien on Consultant's property as provided in section 12.12.010 of the Palo Alto Municipal Code. Any such remedial action by City shall not be construed as a waiver of any rights or remedies of City under this Exhibit D or the Agreement, and nothing herein shall imply any duty of City to do any act that Consultant is obligated to perform. Consultant's obligations under this Section shall survive the expiration or earlier tennination of this EKhibit D. SECTION 9. GENERAL PROVISIONS. (a) If Consultant consists of more than one person, the obligations of each person shall be joint and several. (b) Consultant may not record this Exhibit Dor any memorandum hereof. ( c) Any sale or conveyance by City of the Premises, the provisions of Section 19 ("Termination or Suspension of Agreement or Services") of this Agreement shall govern. SECTION 10. HOLDING OVER. If Consultant remains in possession of the Premises or any part thereof after the expiration of the term of this Agreement, or any renewal option thereto, such occupancy shall be a revocable license from month to month with all the obligations of this Exhibit D applicable to Consultant. Nothing contained Exhibit D or in the Agreement shall give to Consultant the right to occupy the Premises after the expiration of the term of this Agreement, or any renewal option thereto, or upon any earlier termination . SECTION 11. WAIVER OF CML CODE. Consultant expressly waives. the benefit ofany statute now or hereinafter in effect, including the provisions of sections 1941 and 1942 of the Civil Code of California, to the extent applicable, which would otherwise afford Consultant the right to make repairs at City's expense or to terminate this Agreement because of City's failure to keep Premises in good order, condition and repair. SECTION 12. ALTERATIONS BY CONSULTANT. Consultant shall not make any alterations or improvements to the Premises without obtaining the prior written consent of the City Manager, except for alterations or improvements that cost less than Ten Thousand Dollars ($10,000 .00) and which do not affect any building systems or the structural integrity or any structural components of the Premises. 12.1 Ownership of Improvements. All improvements constructed, erected, or installed upon the Premises by Consultant must be free and clear of all liens, claims, or liability for labor or material and Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 40 Packet Pg. 259 of 302 shall become the property of City, at its election, upon expiration or earlier tennination of the term, and shall remain upon the Premises upon expiration or earlier termination of this Agreement. Any furniture, trade fixtures installed by Consultant, equipment or other property of Consultant (whether obtained prior to or during the term of this Agreement) shall remain the property of Consultant. Consultant shall restore the Premises to the condition prior to Consultant's installation of such trade fixtures, consistent with Section 6 ("Surrender; Duties Upon Termination or Expiration") .. 12.2 Indemnity for Claims Arising Out of Construction. For the avoidance of doubt, included in Consultant's obligations under Section 16 ("Indemnity; Limitation of Liability") of the Agreement to which this is an exhibit, is Consultant's obligation to indemnify, defend and hold hannless City Indemnified Parties against all Claims arising out of construction and maintenance work perfonned on the Premises by Consultant or caused to be performed on the Premises by Consultant. 12.3 Certificate of Inspection. In the event Consultant will perform, or cause to be performed, any construction, improvement or alteration or any other work on or to the Premises for which City requires a certificate of completion, then upon completion of any such construction, improvement or alteration, Consultant shall submit to the City Manager a Certificate of Inspection, verifying that such construction, improvement or alteration was completed in conformance with Title 20 of the California Code of Regulations for residential construction, or in conformance with Title 24 of the California Code of Regulations for non-residential construction, as applicable. 12.4 As Built Plans. Consultant shall provide the City Manager with a complete set of reproducible "as built plans" reflecting actual construction within or upon the Premises upon completion of any: (i) new construction or (ii) structural alterations. SECTION 13. ASBESTOS NOTIFICATION. Consultant acknowledges that City has advised Consultant that the Premises contains, or because of its age, is likely to contain asbestos-containing materials ("ACMs"). If Consultant undertakes any alterations, additions, or improvements to the Premises, Consultant shall do so in a manner that avoids disturbing any ACMs present on the Premises . If ACMs are likely to be disturbed in the course of such work, Consultant shall encapsulate or remove the ACMs in accordance with an asbestos-removal plan approved by the City and otherwise in accordance with all applicable laws, including giving all notices required, if any, by California Health and Safety Code§§ 25915-25919.7, as may be amended. SECTION 14. MATERIAL CASUALTY 14.1 Damage and Repair. If a Material Casualty (as defined herein) occurs, then the City shall detennine, in its sole and absolute discretion, whether it wishes to continue to operate the Premises as an animal shelter. The City's failure to provide written notice to Consultant of such election within thirty (30) days after the occurrence of a Material Casualty or other damage or destruction of the Premises shall constitute the City's election to continue the operation of the Premises as an animal shelter. If the City elects (or is deemed to elect) to continue the operation of the Premises as an animal shelter after a Material Casualty, or if the Premises is damaged but such damage does not constitute a Material Casualty, then the City shall promptly reconstruct or repair the destroyed or damaged portion of the Premises. City shall pay all costs of repairing and reconstructing the Premises. A "Material Casualty" is a total destruction of the Premises or any damage to the Premises the repair of which would exceed the City Manager's Council-delegated contracting authority under Palo Alto Municipal Code section 2.30.210, depending on the applicable contract types in relation to the repairs required. 14.2 Termination. If City notifies Consultant in writing within thirty (30) days after the occurrence of a Material Casualty that the City elects to not continue the operation of the Premises as an animal shelter after such Material Casualty, then the Agreement shall immediately terminate as of the date such notice is delivered to Consultant. In the event of such termination, (i) City shall pay Consultant's reasonable costs in winding down the operations at the Premises, including, but not limited to, any costs Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 41 Packet Pg. 260 of 302 associated with the tennination of employees by Consultant and (ii) Consultant shall be entitled to retain its prorated compensation amount for the quarter in which termination occurs (prorated for the number of days in such quarter that elapsed up to the date of termination). 14.3 Continuation. If the City elects (or is deemed to elect) or is obligated to reconstruct or repair the damaged portions of the Premises because such damage does not constitute a Material Casualty pursuant to Section 14. l ("Damage and Repair"), the City and Consultant shall make a determination as to whether the Premises will continue to operate during the reconstruction/repair period. If the parties mutually determine (in their respective reasonable discretion) that the Premises will operate during such period, this Agreement shall remain in full force and effect. Otherwise, Consultant's obligations to provide animal shelter services under this Agreement shall be suspended during such period. In the event of such suspension, (i) City shall pay Consultant's reasonable costs incurred by Consultant during any such suspension of operations and (ii) Consultant shall be entitled to retain its prorated compensation amount for the quarter in which suspension occurs (prorated for the number of days in such quarter that elapsed up to the date of suspension). City shall further pay all reasonable costs incurred by Consultant due to such suspension. If the parties desire, during the suspension period, the parties may negotiate in good faith to try to provide for animal shelter services to the best of the parties' reasonable abilities under the circumstances of such a suspension. SECTION 15. CITY IMPROVEMENTS TO PREMISES. The City has worked with Consultant to identify improvements to the Premises. The City shall improve the Premises as follows, subject to the Contingencies described in this section: 15.1 Expansion of Existing Medical Suite. The City shall expand the medical suite at the Premises to accommodate more animals and offer more privacy to customers. The remodeled medical suite shall expand into the office area for the shelter and shall offer separate entrances for medical customers, separate treatment, recovery, and preparation areas, as well as a lobby for medical customers. The expansion will not be inconsistent with the plans entitled "Floor Plan -New Medical Area" that Consultant provided to City, attached as (Exhibit D-1 ), to the extent practicable and feasible based on site requirements and architectural-or engineering-based considerations. The City shall abate asbestos and lead paint within the medical suite area of the Premises. Expected Timeline: Design and Review Timelines: A/E Consultant Procurement: November 8 -December 30, 2018 Schematic Design/ Design Development: January 2, 2019 -February 25, 2019 Construction Documents: February 28-March 22, 2019 Building Permit: April 4-May 5, 2019 Procurement and Construction Timelines: General Contract Bidding/Procurement: April 25 -July 7, 2019 Construction: July 24 -November 14, 2019 Note: During construction, the building will be closed, and staff will need alternative worksites. All other parts of the building should still be open. 15.2 Addition of New Modular Building. The City shall place a modular building on the site to supplement the existing building. The building shall be used for offices as well as for meetings and educational programs for the public. The modular building shall be connected to utilities and will likely require a concrete pad. The modular building will not be inconsistent with Exhibit D-2, to the extent practicable and feasible based on site requirements and architectural-or engineering-based considerations. The City will place one (1) construction-type trailer within sixty (60) days as temporary accommodations until the modular building is installed and operational. Expected Timeline: Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 42 Packet Pg. 261 of 302 Design and Review Timelines: Design: November 8, 2018 -February 25, 2019 ARB Review: January IO, 2019-February 8, 2019 Building Pennit (concurrent): January I I, 2019 -May 4,2019 Procurement and Construction Timelines: Procurement (9 steps): February 28 -May 12, 2019 Construction (4 major steps): May l, 2019 -July 28, 2019 15.3 Renovation of Existing Dog Kennels. The City shall renovate the existing dog kennels located at the Premises to ensure that all kennels are operable and expected that this work shall be done by March 15, 2019. The renovation shall be as described in Exhibit D-3, to the extent practicable and feasible based on site requirements and architectural-or engineering-based considerations. 15.4 Construction of New Dog Kennels. The City shall construct 16 new kennels on the Premises. Construction is expected to be complete by July 30, 2020. The new kennels will be constructed of galvanized steel, will be air-conditioned and heated, and located as close as possible to the existing dog kennels and medical area, to the extent practicable and feasible based on site requirements and architectural-or engineering-based considerations. Interior and exterior runs shall be of material size and quality not inconsistent with the applicable items as set forth on Exhibit D-4, to the extent practicable and feasible based on site requirements, architectural-or engineering-based considerations, and procurement requirements applicable to the City as a public entity. 15.5 Total Cost. The total cost of these improvements above is expected to be approximately $3.4 million, not including staff time, as estimated at the time as of the execution of this Agreement, and shall be fully paid for by the City of Palo Alto. 15.6 Contingencies . The Parties acknowledge that the improvements in this Section are subject to conditions which may alter the scope of the aforementioned improvements and could prevent one, some, or all of them from being constructed . These conditions include, but are not limited to: (a) Permitting and architectural review; (b) Appropriation of sufficient funds, as decided by the City Council; (c) Compliance with all laws, regulations, permits, and conditions, including CEQA; and (d) Changes in the prices for construction and materials. 15.7 Additional Compensation for Renovation Delays. Due to facility inadequacies, that would be remedied by the completion of the renovations outlined in sections 15.1, 15.2, and 15.3, the City will provide additional compensation to Consultant up to five-thousand dollars ($5,000) per month, should the City be unable to substantially complete the renovations in the time periods outlined in sections 15.1, 15.2, and 15.3. The additional compensation must be specifically documented and related to costs Consultant incurs as a result of facility inadequacies that would be remedied by the completion of renovations. 15.8 All work perfonned by the City shall be performed in a workmanlike manner, in compliance with all applicable laws., City shall take reasonable steps to perfonn such work in a manner which results in minimal disruption to Consultant's activities in the Premises. Consultant will take reasonable steps to accommodate City's work. The City shall enforce all applicable third party warranties at the request of Consultant. City shall promptly obtain final certificates of occupancy for all applicable portions of the Premises. 15.9 Renovation Timeline Updates. City shall provide renovation timeline updates to Consultant on a quarterly basis or more frequently upon request. Six months after the commencement of the construction of the improvements detailed in this Agreement, the parties will meet to review whether the renovation timelines stated herein are on track. City shall provide renovation timeline updates to Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 43 Packet Pg. 262 of 302 Consultant on a quarterly basis or more frequently upon request. If, in Consultant's reasonable determination, there is excessive delay in any renovation timelines stated herein, and City is not diligently pursuing completion of the improvements detailed in Section 15.1, 15.2, or 15.3, Consultant may terminate this Agreement upon sixty (60) days' written notice to City. Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 44 Packet Pg. 263 of 302 Palo Alto Animal Shelter 3281 East Bayshore Rd., Palo Alto, CA Legend Item 6 Attachment B - Professional Services Agreement Between Pets in Need and City of Palo Alto 2019-2023 Item 6: Staff Report Pg. 45 Packet Pg. 264 of 302 City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: August 14, 2023 Report #:2306-1652 TITLE Update on Pending State and Federal Legislation and Advocacy and Grant Writing Support Activities; Consideration of Resolution Offering Comments on SB 532 - the Safe, Clean, and Reliable Bay Area Public Transportation Emergency Act RECOMMENDATION Staff recommends that the City Council receive an update on pending State and federal legislation and lobbying activities. Staff also recommends that the City Council consider a resolution offering comments on SB 532 - the Safe, Clean, and Reliable Bay Area Public Transportation Emergency Act. BACKGROUND AND ANALYSIS The City Council previously received a legislative update on May 15, 2023 and April 3, 2023 related to recent actions in Sacramento and Washington, D.C. The League of California Cities also participated in the May update. For this current update, staff included a memo from Townsend Public Affairs (Attachment A) with the current status of bills organized in the same way as the May 2023 memo. The memo is organized in the State updates section by pulling a handful of bills to the top and including specific Palo Alto impact information for those bills and previous positions the City has taken. It also includes information on where the bills are in the legislative process. The memo also includes 3 additional bills with a proposed position for the City Council to take on the bills. Two of those bills fit within the City’s Legislative Guidelines and thus staff is only asking for Council confirmation on the proposed positions for those 2 bills (AB 531 and SB 326). The third bill, SB 532, is related to transportation funding and staff wanted to receive Council direction related to this bill. Given the burden this bill could place on lower income people, staff proposes a position of offering comments and drafted a resolution for the City Council to consider (Attachment B). If the City Council chooses not to weigh in on this bill or chooses to oppose or support it, staff can amend the resolution to reflect the position. Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 1 Packet Pg. 265 of 302 The TPA memo also lists other bills that Townsend is monitoring on behalf of the City. Staff will continue to analyze these bills with Townsend as they progress. If desired, Council members may also raise for discussion other legislation of Palo Alto interest that is not listed in the memo or may recommend action on any of the bills listed on the monitoring list. Positions could also relate to bills the Council would like to request the Governor to veto. The memo also includes brief Federal and Grants updates. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 2 Packet Pg. 266 of 302 1 M E M O R A N D U M To: The Honorable Lydia Kou and Members of the Palo Alto City Council CC: Ed Shikada, City Manager Chantal Cotton Gaines, Deputy City Manager From: Townsend Public Affairs Christopher Townsend, President Niccolo De Luca, Vice President Ben Goldeen, Federal Advocacy Manager Alex Gibbs, Grants Manager Carlin Shelby, Associate Date: August 14, 2023 Subject: State and Federal Legislative and Funding Updates Townsend Public Affairs, Inc. (TPA) has prepared this report for the City of Palo Alto to provide a summary of State and Federal efforts, highlight the current status of the legislative process, identify various pieces of legislation that may be of interest to the City, and provide an update on funding advocacy efforts. STATE LEGISLATIVE UPDATES The Legislature adjourned for its Summer Recess beginning July 14 until August 14. Upon its return, the Legislature will have one final month to complete bill consideration before the 2023 Legislative Session officially adjourns on September 14. Of the over 2,600 measures introduced this Session, the Legislature will consider 1,231 in the final month before adjournment. The return from Summer Recess on August 14 will feature Appropriations Committee hearings for both houses – both with immense bill agendas to consider. Following the first week of Appropriations Committee hearings, lawmakers will also need to get any financially significant bills through a second suspense file before they can move to the floor for final votes. These committees will consider a number of the City’s priority bills, including high-profile measures relating to housing and land use, public safety, and economic development. Bills that pass the Appropriations Committees will move to the second house floor for consideration from the entire legislative body. Governor Newsom will then have until October 14 to sign or veto any bills that make it out of the Legislature and to his desk. In addition to upcoming legislative deadlines for the progression of priority measures, the Legislature has recently undergone notable leadership changes. Following nearly a year-long transition, Friday, June 30 marked the final day of the Session with Anthony Rendon as the Assembly Speaker, as Robert Rivas was sworn in to serve as the 71st Speaker of the Assembly. Representing an agricultural swath of central California, Rivas becomes the first Speaker in a generation to hail from a rural region. His priorities as Speaker include working to address the issues of homelessness and affordable housing. Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 3 Packet Pg. 267 of 302 2 As Speaker, Rivas has made some changes to internal Assembly leadership, including the Appointment of Assembly Member Juan Carrillo (D-Palmdale) as Chair of the Local Government Committee. Assembly Member Carrillo previously served on the Palmdale City Council. His tenure as Chair will impact the progression of numerous local government measures in the coming years. Advocacy Update Over the last few months, the City/TPA team has been actively working on extension of the Homekey grant project completion deadline. This effort includes strategizing and implementing a plan of action with our regional partners including the County, neighboring jurisdictions, and their advocates. We are working closely with our State Legislative delegation to brief them on the interconnectivity of the projects, reasons why more time is needed, and desired outcomes; providing input on project materials and summary documents; and driving follow up and next steps. Priority Legislation for the City of Palo Alto 1. Bills With City Positions The following chart provides an overview and update as of July 27, 2023 on bills on which the City has taken positions. BILL SUMMARY/STATUS CITY IMPACT POSITION AB 12 (Haney) Prohibits tenants from having to pay more than one month's rent as a security deposit for furnished or unfurnished rental property. Status: Pending final consideration on Senate Floor. This measure adds another tool in protecting renters against unreasonable housing costs. This could benefit residents in Palo Alto who utilize rental housin . Support (letter submitted in June) AB 1469 (Kalra) Authorizes the Santa Clara Valley Water District to assist unsheltered people living along streams, in riparian corridors, or otherwise within the district’s jurisdiction, in consultation with a city or the County of Santa Clara, to provide solutions or improve outcomes for the unsheltered individuals. Status: Pending consideration from the Senate Appropriations Committee. This measure provides the City with additional resources for homelessness prevention and regional collaboration by authorizing the Water District to assist homeless individuals occupying areas within its urisdiction. Support (letter submitted in June) AB 1484 (Zbur) Requires temporary employees of cities and counties to join existing bargaining units accessible to permanent employees. Imposes requirements on employers with temporary employees hired to do the same or similar work performed by permanent employees. Requires complaints alleging a violation of its provisions to be processed as unfair practice charges under the Meyers-Milias-Brown Act. Status: Pending consideration from the Senate Appropriations Committee. This measure could impact hiring, retention, and collective bargaining practices for city employees, by grouping temporary, retired annuitant, and full-time employees into the same bargaining units. Oppose (postiion shared in June; letter recently submitted) Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 4 Packet Pg. 268 of 302 3 BILL SUMMARY/STATUS CITY IMPACT POSITION AB 1505 (Rodriguez) Authorizes the Office of Emergency Services (OES) to dedicate Hazard Mitigation Grant Program and Building Resilient Infrastructure and Communities application funding to specified projects to augment and support the Seismic Retrofitting Program for Soft Story Multifamily Housing. Status: Pending consideration from the Senate Appropriations Committee. Seismic safety improvements align with the Palo Alto City Council’s 2023 Priority of Community Health and Safety and will help the City progress in the seismic improvements objective. Support (letter submitted in May) AB 1598 (Berman) Requires DOJ to prepare a firearm-safety-certificate study guide, separate from the current instruction manual, explaining information covered on the firearm safety certificate test, and to develop a new pamphlet on the risk and benefits of firearm ownership. Status: Pending consideration from Senate Floor. This measure could improve safety related to gun handling and violence. City support demonstrates continued support for Assembly Member Berman’s legislative agenda. Support (letter submitted in June) AB 1637 (Irwin) Requires cities and counties that maintain a public internet website and use public email addresses for employees to utilize a “.gov” or a “.ca.gov” domain name for their websites and email addresses by January 1, 2029. Status: Pending consideration from the Senate Appropriations Committee. This could present a long and costly process for the City to comply and could impact constituents’ ability to communicate with the City. Further, the bill is without state compliance support or tangible security benefits. TPA advocated for a delayed compliance deadline, which was recently achieved with a recent amendment that pushed compliance from 2026 to 2029. Oppose (letter submitted in June) ACA 1 (Aguiar- Curry) Proposes amendments to the California Constitution to allow a city, county, or special district, with 55% voter approval, to incur bonded indebtedness or impose specified special taxes to fund projects for affordable housing, permanent supportive housing, or public infrastructure. Status: Pending consideration from the Assembly Appropriations Committee. Not required to adhere to typical deadlines because it is a constitutional amendment. This bill creates another optional tool for infrastructure financing and levels the threshold between other public agencies that already enjoy a 55% voter threshold, such as school boards. Support (letter submitted in June) ACA 5 (Low) Repeals a provision in the California Constitution that limits marriage to a “man and a woman,” and replaces it with provisions that make the right to marry a fundamental right. Status: Chaptered on July 20, 2023. Pending consideration from the state electorate as a ballot initiative in 2024. One of the Palo Alto City Council Priorities for 2023 is the equal treatment of all individuals. This measure removes outdated and discriminatory language from California’s constitution. Support (letter submitted in June) SB 2 (Portantino) Creates a new issuing process for concealed carry weapons (CCW) licenses following the U.S. Supreme Court ruling in New York Rifle and Pistol Association v. Bruen from June of 2022. Status: Pending consideration from the Assembly Appropriations Committee This measure aligns with recent Council action taken to restrict concealed weapons in sensitive areas such as government buildings, schools, and polling places. Support (support shared in June; letter recently submitted) Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 5 Packet Pg. 269 of 302 4 BILL SUMMARY/STATUS CITY IMPACT POSITION SB 43 (Eggman) Updates the definition of “gravely disabled” to include a new focus on preventing serious physical and mental harm stemming from a person’s inability to provide for their needs for nourishment, personal or medical care, find appropriate shelter, or attend to self-protection or personal safety, due to their mental or substance use disorder. Status: Pending consideration from the Assembly Appropr ations Committee. One of the Palo Alto City Council Priorities for 2023 is Community Health and Safety which includes some focus on mental health. This bill aligns with that priority. Support (letter submitted in May) SB 363 (Eggman) Establishes a real-time, internet-based dashboard to collect, aggregate and display information about the availability of beds in a range of psychiatric and substance abuse facilities. Status: Pending consideration from the Assembly Appropriations Committee. One of the Palo Alto City Council Priorities for 2023 is Community Health and Safety which includes some focus on mental health. This bill seems to align with that priority. The City would need to further analyze the resources required for this le islation. Support (letter submitted in May) SB 423 (Wiener) Extends the sunset for SB 35 provisions (Wiener, Statutes of 2017) from 2026 to 2036, relaxes specified construction labor requirements, and removes the exclusion of the coastal zone. Status: Pending consideration from the Assembly Appropriations Committee. Palo Alto has included in the Legislative Guidelines many principles to support local control of land use and this bill conflicts with that. Oppose via Recorded Council Majority (letter submitted in June) SB 572 (Stern) Requires the California Public Utilities Commission (CPUC) to submit a report to the Legislature, by February 1, 2024, on the status, outcomes, and recommendations of the agency’s investigation into natural gas prices during winter 2022-23. Status: Pending consideration from the Assembly Appropriations Committee. This measure aligns with City efforts to investigate and prevent future natural gas price spikes, like what occurred in winter of 2022. Support (letter submitted in June) SB 719 (Becker) Requires law enforcement agencies to ensure any non-confidential radio communications are accessible to the public. Status: Held as a 2-year bill. May be acted upon January 2024. The City Council supported similar legislation in 2022. As of Fall 2022, the City of Palo Alto switched routine Palo Alto Police radio transmissions to now be broadcast on an unencrypted channel. This bill in its current form should not affect Palo lto operations. Support (letter submitted in May) Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 6 Packet Pg. 270 of 302 5 2. Bills With Recommended Action The following chart features three measures that TPA advocates have identified with recommendations for the City to take a formal position on, pending Council consideration and approval on August 14. BILL SUMMARY/STATUS CITY IMPACT RECOMMENDED ACTION AB 531 (Irwin) Enacts the Behavioral Health Infrastructure Bond Act of 2023, which places a $4.68 billion GO Bond authorization before voters at the March 2024 statewide primary election to fund behavioral health infrastructure. Status: Pending consideration from the Senate Appropriations Committee This measure would provide funding for the development of care facilities for the state’s homeless. This is likely to impact regional and City- wide homelessness services, and result in reductions in homeless populations once effectively implemented. Support SB 326 (Eggman) Recasts the MHSA by, among other things, renaming it the Behavioral Health Services Act (BHSA), expanding it to include treatment of substance use disorders, changing the county planning process, and expanding services for which counties and the state can use funds. Status: Pending consideration from the Assembly Appropriations Committee This measure is complementary to AB 531 and would increase the efficiency with which behavioral health care dollars are used. This is likely to have a positive impact on City and regional homeless needs. Support SB 532 (Wiener) Requires the Bay Area Toll Authority (BATA) to increase by $1.50 the toll for each of the seven state-owned toll bridges in the San Francisco Bay Area and continuously appropriates toll revenues to the Metropolitan Transportation Commission (MTC), including revenues from the toll increase for allocation to transit operators in the region that are experiencing a financial shortfall. Status: Pending consideration from the Assembly Appropriations Committee This measure would generate needed operations funding, however, funding would be disproportionately directed to MUNI and BART services located in San Francisco and the East Bay. This measure could increase commute costs andtransit accessibility for low-income riders. Seek input from Council – a possible draft resolution is included in this packet 3. Notable Bills with Recommendations to Monitor Progress The following chart includes priority legislation TPA advocates are monitoring on behalf of the City with active engagement with Author’s offices and staff, stakeholders, and committees. BILL SUBJECT SUMMARY STATUS POSITION AB 309 (Lee) Housing and Land Use Creates the California Housing Authority, as an independent state body, the mission of which would be to ensure that social housing developments that are produced and acquired align with the goals of eliminating the gap between housing production and regional housing needs assessment targets and preservin affordable housin . Pending consideration from the Assembly Appropriations Committee. Monitoring Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 7 Packet Pg. 271 of 302 6 BILL SUBJECT SUMMARY STATUS POSITION AB 557 (Hart) Open Meetings Extends modified teleconferencing provisions under the Brown Act when a declared state of emergency is in effect, or in other situations related to public health, indefinitel . Pending consideration on Assembly Floor. Monitoring AB 894 (Friedman) Housing and Land Use Requires public agencies to allow proposed and existing developments to count underutilized and shared parking spaces toward a parking requirement imposed by the a enc . Pending consideration from Appropriations Committee. Monitoring AB 965 (Carrillo) Energy and Utilities Requires a local agency to undertake “batch permitting” upon receiving two or more broadband permit applications for “substantially similar projects.” The bill deems approved any such permit application that a local agency neither approves or rejects within a “presumabl reasonable time.” Pending consideration from Appropriations Committee. Monitoring AB 1317 (Carrillo) Housing and Land Use Adopts a pilot program that requires property owners of new multi-family residential properties in certain counties to unbundle the cost of parking from the cost of the housing unit. Includes Santa Clara Count . Pending consideration from Appropriations Committee. Monitoring AB 1319 (Wicks) Housing and Land Use Modifies how the Bay Area Housing Finance Authority (BAHFA) may collect and expend revenue. Provides that actions taken by BAHFA to raise, administer, or allocate funding for tenant protection, affordable housing preservation, or new affordable housing production, or to provide technical assistance consistent with BAHFA’s purpose is exempt from CEQA. Pending consideration from the Assembly Appropriations Committee. Monitoring AB 1567 (Garcia) Climate Places a $15.955 billion climate resilience general obligation bond before the voters on the March 5, 2024, Primary Election ballot. Pending policy committee consideration. Monitoring AB 1633 (Ting) Housing and Land Use Specifies that a local agency has disapproved a housing project in violation of the Housing Accountability Act (HAA) if it fails to make a determination that a project is exempt from the California Environmental Quality Act (CEQA), or fails to adopt, certify, or approve certain environmental documents under specified circumstances. Pending consideration from Appropriations Committee Monitoring AB 1657 (Wicks) Housing Enacts the Affordable Housing Bond Act of 2024, which places a $10 billion General Obligation bond before voters in the March, 2024 primary election to finance specified affordable housing and homeownership pro rams Pending consideration from Appropriations Committee. Monitoring Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 8 Packet Pg. 272 of 302 7 BILL SUBJECT SUMMARY STATUS POSITION SB 321 (Ashby) Community Services Establishes the Local Public Library Partnership Program in which the State Librarian would coordinate with each local public library to ensure each student is issued a student success card by 3rd grade and increase their access to a librar . Pending consideration from Appropriations Committee. Monitoring SB 4 (Wiener) Housing and Land Use Establishes that affordable housing development projects are a “use by right” on land owned by religious institutions or independent higher education institutions Pending consideration from Appropriations Committee. Monitoring SB 440 (Skinner) Housing and Land Use Authorizes two or more local governments to establish a regional housing authority (Authority) for purposes of raising, administering, and allocating funding and providing technical assistance at a regional level for affordable housin development Pending consideration from Appropriations Committee. Monitoring SB 450 (Atkins) Housing and Land Use Identified as the SB 9 (Atkins, Statutes of 2022) "Clean up bill." Among other things, prevents local agencies from creating zoning, subdivision, and design rules that do not apply equally to all development within a particular area. Pending consideration from Appropriations Committee. Monitoring SB 567 (Durazo) Housing and Land Use Provides renter protections including expanding the population of protected tenants, limiting allowable rent increases, and closing loopholes related to the no-fault just cause for eviction. Pending consideration from Appropriations Committee. Monitoring SB 867 (Allen) Climate Authorizes a $15.5 billion climate resilience bond to be placed before voters at an unspecified election. Pending policy committee consideration. Monitoring. State Budget Update On June 13, Governor Newsom signed the 2023 Budget Act, SB 101, into law, four days before the constitutional deadline of July 1. Overall, the budget reflects a $310.8 billion spending plan for the 2023-24 fiscal year. This agreement also closes an estimated $32 billion budget deficit while setting aside about $37.8 billion in reserves. In early July, the Governor signed into law a package of “Budget Jr. Bills” and “Budget Trailer Bills” which amend the Budget Act and provide implementing language for key spending programs, and reflect the final agreement on the state’s spending plan reached between the Administration and the Legislature. Much of the negotiations throughout this year’s budget process centered around the Governor’s desire to include several measures to expedite large-scale infrastructure projects by, in part, accelerating the judicial review of CEQA lawsuits and providing funding for transit operations. Ultimately, the negotiations resulted in a concession the Governor made, to remove the proposed Delta Tunnel water project from being eligible for expedited CEQA review. Key accounts related to housing, homelessness, public safety, and transportation are mostly stabilized from budget amounts in the past few years. Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 9 Packet Pg. 273 of 302 8 Below is an overview of key spending programs included in the final budget agreement, organized by issue area: Housing The housing package in the state budget includes various annual and one time funding programs. The California Dream for All shared equity down payment assistance program for first-time homebuyers is fully funded by rejecting the $200 million proposed cuts, as is the Accessory Dwelling Unit Grant Program by rejecting $50 million in proposed cuts. The budget directs $100 million to the Housing and Community Development Department’s flagship affordable housing development program: Multi-Family Housing Program. It retains $50 million for the CalHome affordable housing retention and rehabilitation program, by partially rejecting $100 million in proposed cuts, and $82.5 million for the Foreclosure Intervention and Housing Preservation Program while achieving budget year savings through deferral of $345 million previously allocated to the program. Homelessness The state budget includes $1 billion into round five of the state’s Homeless Housing, Assistance and Prevention program, which local officials can use for housing, outreach at encampments, emergency shelters and more. In accordance with the Governor’s desire to see local accountability for use of funds, the agreement includes language to require local government recipients to incorporate more data relating to homelessness prevention goals and outcomes to more effectively assess the efficacy of the program. Public Safety The state budget includes various programs for opioid overdose education and prevention, with $3.5 million ongoing funding to county offices of education to supply opioid overdose reversal medication, with at least two units at all middle and high schools within each county office’s jurisdiction. The budget also includes $15.3 million annually for four years from the Opioid Settlements Fund to support harm reduction programs for staff and costs related to delivery of naloxone, fentanyl test strips, overdose prevention and response training, and drug treatment provision and navigation, in the California Harm Reduction Initiative. Further, the budget agreement includes annual funding over the next four years for the expansion of the Naloxone Distribution Project includes expenditure authority from the Opioid Settlements Fund of $74.7 million in 2023-24, $35.7 million in 2024-25, and $24.7 million in 2025-26 and $24 million in 2026-27. Transportation The transportation budget package includes a restoration of the $2 billion from the General Fund for the TIRCP program, as well as committing $1.1 billion in new and previously appropriated transit funding for the newly created Zero Emission Transit Capital Program. This funding would flow to regional transportation agencies by formula and can be used for transit capital infrastructure or can be directed to meet the operational needs of transit agencies in their Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 10 Packet Pg. 274 of 302 9 jurisdiction. The trailer bill language describes the process by which the regions can access their share of these funds and includes some accountability measures regions must meet. In addition, the transportation package requires CalSTA to establish and convene the Transit Transformation Task Force to include representatives from transit operators, local governments, transportation advocacy organizations, and other stakeholders, to develop policy recommendations to grow transit ridership and improve the transit experience for all users of those services. From this effort, a report of findings and policy recommendations are to be submitted to the Legislature no later than October 31, 2025. Proposed Statewide Bond Measures The Governor’s Administration and the Legislature have proposed a number of statewide bond measures to address issues related to housing production, behavioral health services, climate resiliency, and the modernization of school facilities, among others. The proposed statewide bonds feature roughly $100 billion in total funding. The state’s estimated borrowing limit is $26 billion. The state does not impose limitations on how much it can borrow, however, in deciding which measures to prioritize, the Legislature and Administration will weigh a number of factors. Those include voter sentiment and the state’s economic outlook and its debt service ratio — the percentage of the state’s general fund that is spent paying down its debt. The state’s annual debt service from the general fund sits at $8.1 billion and is expected to grow to $8.9 billion in 2026- 27, according to estimates from the California Department of Finance. High-profile proposed bond measures include the following. Bond measures for the March primary ballot must be approved by two-thirds of lawmakers by the end of the legislative session on September 14 and then signed by Governor Newsom. Items for the November election can be voted on until early next summer. AB 531 (Irwin) enacts the Behavioral Health Infrastructure Bond Act of 2023, which places a $4.68 billion General Obligation Bond authorization before voters at the March 2024 statewide primary election to fund behavioral health infrastructure. These funds would be used for the construction of care facilities throughout the state to support those struggling with mental illness and substance abuse. AB 1567 (Garcia) and SB 867 (Allen) both propose over $15 billion in bonds for a comprehensive climate resiliency package. Funds would be used for drought, flood, and fire mitigation, coastal resilience, park and outdoor access programs, and clean energy development, among other things. The two near-identical measures are parked in the Senate and the Assembly as a means to facilitate negotiations between both houses and the Administration on final funding priorities. AB 1657 (Wicks) Enacts the Affordable Housing Bond Act of 2024, which places a $10 billion General Obligation bond before voters in the March 2024 primary election to finance specified affordable housing and homeownership programs. Programs include the Multifamily Housing Program to finance the construction of permanent and transitional housing for lower income households, and the CalHOME program, which provides grants to local public agencies and non-profit developers to assist individuals and households through deferred-payment loans. Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 11 Packet Pg. 275 of 302 10 The Governor has publicly announced his support for a behavioral health facilities capital construction bond (AB 531) totaling $4.8 billion and is prioritizing its placement on the March primary election ballot. In addition, he is supportive of a climate resiliency bond – even going so far as to predicate portions of the state’s total climate budget on the passage of a future bond. The passage of these bonds would provide for ongoing funding programs that align with many of the City’s goals, including clean energy development, parks and recreation, affordable housing, and transportation, to name a few. State Advocacy Next Steps: Townsend Public Affairs (TPA) will continue to work with the Legislature to advocate on behalf of priority bills. TPA will work with Legislators moving forward bond measures to identify strategies for the inclusion of funding for priority projects and programs. TPA will plan to meet with Staff and the City Council following the adjournment of the 2023 Legislative Session to identify funding priorities to incorporate into a budget request for the coming year, as well as opportunities for sponsored legislation. TPA to work with City staff to create a process for City legislative engagement, including an updated Legislative Platform Document and/or a Legislative Subcommittee at the direction of the Council. FEDERAL UPDATES Update on Congressionally Directed Spending Submittal TPA worked in partnership with the City to draft, fine-tune, and submit a congressionally directed spending request for infrastructure funding to help redevelop the Buena Vista Mobile Home Park. The Park, a locally significant affordable housing resource, is in desperate need of sustainable redevelopment, including 100% electrification. An award would assist the predominantly Latinx and very low-income residents who call it home. This application was in partnership with the Santa Clara County Housing Authority and the requested amount was $2 million. The request was submitted to Senator Padilla, Senator Feinstein, and Congresswoman Eshoo. Congresswoman Eshoo chose the project as one of her priorities to move forward. The request was incorporated into the House Appropriations Subcommittee on Transportation, Housing, and Urban Development (THUD)’s markup in the amount of $850,000. Due to the partisan composition of the House, Republican lawmakers received an outsized share of community project request funding, with many Democratic lawmakers seeing funding cuts to their original request amounts. The House and the Senate must move forward with reconciling the differences between their proposed spending packages. Congress must approve or extend funding for all twelve appropriations bills by September 30 or risk a government shutdown. What’s more, the debt limit compromise passed earlier this year includes a trigger provision that would automatically cut one percent of all discretionary programs if Congress fails to pass all measures before the start of 2024. Republicans are advocating for significant funding reductions within the House, which can impact action on fiscal year 2024 spending bills. Lawmakers in both chambers will use the August break to negotiate a final package. Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 12 Packet Pg. 276 of 302 11 Update on Federal Aviation Administration (FAA) Authorization Legislation On July 20, the US House of Representatives passed H.R. 3935, a bill to reauthorize the Federal Aviation Administration for the next five years by a 351-69 vote. One of the amendments incorporated into the package was offered by Congresswoman Anna Eshoo. The amendment requires the FAA to solicit feedback from communities impacted by aircraft noise as part of the Community Collaboration Program. The amendment was adopted by voice vote as part of a package of amendments. If effectively signed into law, this amendment will offer additional transparency and collaboration between communities like Palo Alto, airlines, and the FAA in negotiating flight paths and their associated impacts. While the House voted to pass the authorization legislation, in the Senate, progress has slightly lagged. However, noteworthy advancements are on the horizon. A significant revelation came from Aviation Subcommittee Chair Tammy Duckworth (D-Ill.) who highlighted a recent "breakthrough." The crux of this agreement involves an extension of the commercial pilot retirement age from 65 to 67. In tandem, there's an agreement to uphold the current rules necessitating up-and-coming commercial pilots to log 1,500 flight hours. Notable disagreements between airlines like Delta and United are impeding the bill's progression. A central contention revolves around flight quotas at Reagan National Airport with endeavors to maintain within- perimeter services and ensure operational dependability. Concurrently, there's a push to bolster competition in the national capital area, a sticking point that's currently stalling the Senate bill's entirety.The current FAA authorization expires on September 30. In addition to the progress of this legislation, TPA is working with city staff to submit a comment letter to the FAA regarding airplane noise review to articulate concerns regarding noise from aircraft overflights. The FAA is engaging with the public and other stakeholders to learn more about aviation noise and provide input for the agency’s consideration. Comments are due September 29, 2023. Federal Advocacy Next Steps: TPA to continue to advocate for the inclusion of the Congressionally directed spending proposal and keep the Council and City Staff updated on its progress. TPA to continue to work with City staff on the crafting of the FAA Noise Policy review comment letter and keep the City updated on opportunities to engage in the public comment process. TPA to continue to monitor updates from the Federal Energy Regulatory Commission (FERC) and their investigation into high natural gas prices during the winter of 2022 and provide opportunities for the City to engage in public comment processes. TPA to work with City Staff and the Council to identify funding priorities and federal grant programs that match with eligible projects. Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 13 Packet Pg. 277 of 302 12 GRANT FUNDING UPDATES Townsend Public Affairs (TPA) currently provides grant writing support to city staff. Since coming onboard, TPA grant writers have provided consultation, review, editing, narrative drafting, grant assembly, submission and advocacy for the following projects. Grant Program Pro ect TPA Action Requested Amount Patrick Leahy Bulletproof Vest Partnership Program This program would reimburse the City of Palo Alto's Police Department for the purchase of bullet proof vests for peace officer personnel protection. TPA provided direct consultation, narrative drafting, technical assistance, and submitted the application on behalf of the City. $30,000 Organized Retail Theft Prevention Grant Program This program would support the City law enforcement support local law enforcement in preventing and responding to organized retail theft and motor vehicle or motor vehicle accessory theft. TPA provided direct consultation, narrative drafting, technical assistance, and submitted the application on behalf of the City. $5,103,283 FY 2024 State Homeland Security Grant Program (HSGP) This program would support the City's law enforcement in improving homeland security detection and response capabilities. TPA provided direct consultation, narrative drafting, technical assistance, and submitted the application on behalf of the City. $15,000 Total: $5,148,283 TPA currently provides a monthly grant memo to staff that covers relevant and upcoming funding opportunities that align with municipal priorities. TPA then hosts a monthly grant meeting with relevant departments to review and discuss upcoming grant programs and determine eligibility and competitiveness. In addition, the TPA grant writing team regularly organize calls with staff outside of standing calls to discuss specific projects and how best to position them for future funding success. TPA works closely with staff to track all grant applications submitted by the city, due dates, and if successful reporting requirements. TPA and city staff are currently working on several grant applications for transportation infrastructure, community resilience, recreation infrastructure, emergency preparedness and more. Grant Program Project TPA Action Due Date Approx. Request Amount The Mega Grant Program The Mega Program (the National Infrastructure Project Assistance program) supports large, complex projects that are difficult to fund by other means and likely to generate national or regional economic, mobility, or safety benefits. Palo Alto is seeking funding for grade separation projects within the City. TPA is actively working with City transportation department staff to formulate a competitive project and scope to submit prior to the grant deadline. August 21,2023 $50,000,000 Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 14 Packet Pg. 278 of 302 13 Grant Program Project TPA Action Due Date Approx. Request Amount Strategic Growth Council Community Resilience Center Grant This program supports the planning and construction of neighborhood-serving ‘community resilience centers’ that can protect people from extreme heat and other climate-driven extreme weather and build community preparedness. City staff are in the process of identifying a location to implement a construction grant to develop a communit resilience center. TPA is actively working with City staff to determine a competitive project location and need that would serve vulnerable residents in times of extreme climate events. September 18, 2023 $1,000,000 - $3,000,000 Reconnecting Communities Pilot Program This program seeks to reconnect communities by removing, retrofitting, or mitigating transportation facilities, like highways or rail lines, that create barriers to community connectivity, including to mobility, access, or economic development. TPA is working with City staff and agency staff to work toward an application for the rehabilitation of the Newell Road Brid e. September 20, 2023 $2,000,000 - $5,000,000 Grant Funding Next Steps: TPA to continue to work with City staff in identifying priority projects with matching programs and advise, draft, and submit comprehensive applications on the City’s behalf. TPA to continue post grant submittal advocacy for submitted applications and to schedule debrief calls between the City and agency staff once award announcements are released. TPA to continue to work on upcoming applications for City prioritiy projects, such as grade separation funding and funding for the completion of the Newell Road Bridge. Item 7 Attachment A - State and Federal Update Memo from Townsend Public Affairs, August 2023 Item 7: Staff Report Pg. 15 Packet Pg. 279 of 302 RESOLUTION NO. ___ The Safe, Clean, and Reliable Bay Area Public Transportation Emergency Act WHEREAS, any official position of the City of Palo Alto, with respect to legislation, rules, regulations or policies proposed to or pending before a local, state, or federal government body or agency must have first been adopted in the form of a Resolution; and WHEREAS, the onset of the COVID-19 pandemic in 2020 caused a steep decline in public transit ridership and revenue. The federal government provided $4.4 billion of emergency relief funds to Bay Area transit operators, which allowed agencies to continue to deliver transit services over the past three years. However, the operators are expected to exhaust those federal relief funds in the coming years; and WHEREAS, in response to this fiscal crisis facing the agencies, the Newsom Administration and State Legislature provided $5.1 billion of transit capital and operating funding – including $1.1 billion of new funding – in this year’s state budget to give transit agencies across the state more time to recover ridership and make adjustments to adapt to post-pandemic travel patterns. The entire $5.1 billion was made flexible to be used to cover operating shortfalls, and all together, allows transit to avoid any fiscal cliffs until 2027; and WHEREAS, Senate Bill 532 (Wiener), introduced as a “gut and amend” bill on June 22, 2023, would raise tolls on the seven state-owned Bay Area bridges by $1.50 effective January 1, 2024 for even more support for transit operators; and WHEREAS, bridge tolls are already high and set to be raised again in 2025 for Regional Measure 3. The tolls are overwhelmingly paid for by non-San Francisco residents, but the funds would inequitably go to largely fund Muni and BART operations into San Francisco which may not serve the toll payers’ commute corridors; and WHEREAS, in a post-pandemic world, commuters who drive a car or pick-up truck across our bridges and paying tolls are statistically lower income and are disproportionately people of color. Post-pandemic, we have a bifurcated society in the Bay Area of those with the luxury to work remotely and those that cannot. Many of these bridge-crossing drivers cannot work from home nor reasonably take transit, and the cost of providing transit to them would be prohibitively expensive. WHEREAS, SB 532 is a gut and amend bill that would bypass the voters to levy a bridge toll increase on the commuters who can least afford it. It could undermine the region’s ability to raise transit revenue at the ballot going forward; and WHEREAS, The state budget relief package bought the region valuable time to maintain service while transit agencies find ways to operate more efficiently, collect fares from existing riders, and provide a more attractive service to build ridership and revenue; and Item 7 Attachment B - Draft Resolution for Consideration on SB 532 (Wiener) Item 7: Staff Report Pg. 16 Packet Pg. 280 of 302 WHEREAS, The Bay Area should wait to see how transit agencies use the state budget relief funding to improve their services to respond to rider concerns and then the region can reevaluate new revenue options next year. Item 7 Attachment B - Draft Resolution for Consideration on SB 532 (Wiener) Item 7: Staff Report Pg. 17 Packet Pg. 281 of 302 City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: City Manager Meeting Date: August 14, 2023 Report #:2307-1790 TITLE City Council Recess Report RECOMMENDATION Informational report only. EXECUTIVE SUMMARY This memorandum provides an overview of notable city activities through the month of July. As noted, progress continued on several Council priorities as well as general city operations. A full list of Citywide updates is listed by department under the Analysis section of this informational report. Here are a few highlights: A cross department team focused on transitioning financial reporting from FY 2022-2023 to the new Fiscal Year, which started on July 1, 2023. Staff anticipates publishing the FY 2023-2024 budgets in August. The Trusted Response Urgent Support Team for North County added outreach workers (to promote the program), case managers (to follow-up with clients and better connect them to services) and are focused on providing mental health first aid trainings in the community. Hiring, recruitment and promotions continue to be a top priority for all departments. An in-house crew supported Foothills Roadside Vegetation Clearance/Fire Prevention over the span of three weeks and over 2,300 work hours, clearing a total of 20 miles of road. Work locations included Los Trancos Road, Arastradero Road, and Page Mill Road. On July 3, the City released the Request for Proposals for consultant services to study different street alternatives, configurations, and activations for Cal Ave. and Ramona St. With proposals due in early August, staff plans to present a contract with a preferred vendor to the City Council this fall. Palo Alto Fire Department (PAFD) and Santa Clara County Fire Department (SCCFD) firefighters began staffing Fire Station 8 in the Palo Alto Nature Preserve. Summer 2023 is the third fire season that PAFD and SCCFD staffed Fire Station 8 since a Tri-Party Fire Agreement for Foothills Fire Station staffing was executed. Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 1 Packet Pg. 282 of 302 The City received notification from the California State Transportation Authority (CalSTA) that the Churchill Avenue Grade Crossing was chosen for $23.7 million of funding towards final design. Staff is coordinating with Santa Clara Valley Transportation Agency (VTA), Joint Peninsula Board (JPB/Caltrain), and granting agencies on the next steps for award of the funding. The Police Department coordinated with several departments to install six of the twenty Automated License Plate Reader (ALPR) cameras approved by Council and anticipate installing the remainder of the cameras in the coming weeks. Capital improvement projects continue to be on time and on budget, including the Public Safety Building, Regional Water Quality Control Plant (RWQCP) projects including the 12kV Electrical Loop Rehabilitation, Primary Sedimentation Tank Rehabilitation, and Secondary Treatment Upgrades, and Boulware Park, and the Palo Alto History Museum Roth Building construction have begun. The Grid Modernization and Electrification study is in progress and on track for completion this fall. The 11% voluntary water use reduction request implemented by the San Francisco Public Utilities Commission (SFPUC) and State of California’s emergency drought regulations expired in June. As a result, Palo Alto lifted the 2-day per week watering restriction. Several State water waste restrictions continue to be in effect and staff is working on community outreach. BACKGROUND The following informational report provides a brief update on activities accomplished during the City Council’s July recess. The updates are organized by department. While this report is not an exhaustive list of staff activities, it seeks to inform the City Council and the broader community about items completed since the last City Council meeting of the fiscal year or recent efforts underway. ANALYSIS Administrative Services Department End of Fiscal Year and New Fiscal Year Activities The Administrative Services Department (ASD) has been focusing on transitioning to the next fiscal year. In partnership with the Information Technology (IT) Department, ASD staff completed the transition in the financial system. Both departments have been working closely to increase automation of this transition and due to these efforts, the team completed the transition error free and ahead of schedule. ASD’s annual inventory of both warehouses, the Municipal Services Center and Regional Water Quality Control Plant (RWQCP), were completed with no discrepancies. This process requires physically counting inventory of close to 5,000 stocked parts, totaling approximately $7 million. The Office of Management and Budget (OMB) is working on publishing the FY 2024 Adopted Operating and Capital Budget books, along with the FY 2024 Municipal Fees, targeting an August release date. Working with the IT Department and the Human Resources Department, staff continued implementation for employee contract terms for payroll processing, effective July 1, 2023. Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 2 Packet Pg. 283 of 302 Recruitments ASD continues work to fill key department vacancies, aiming new employees to start by fall 2023. These positions include two analyst positions in OMB, two Contract Administrator positions in Purchasing, one administrative support position, and positions in Revenue Collections and Payroll as part of ASD’s succession planning efforts. The Purchasing Division continues implementing the new eProcurement system from OpenGov after first going live in June. Since going live, 11 solicitations were started. Streamlining enhancements in the new system include consolidated direct messaging with vendors, integrated solicitation intake processing, and agreement development. In addition, the processes for soliciting request for proposals (RFP) and invitation to bids (IFB) are being centralized, consolidating several individual steps into one. The new system can be reached here. Staff also implemented two new tools that automated a manual step to change the fiscal year of purchase orders and one that allowed for mass updating of purchase requisitions, resulting in process efficiencies. Staff continues implementing the City’s Business Tax. The City partnered with MuniServices, who also supports collection and administration of the Business Registry Certificate (BRC) Program and Business Improvement District (BID), to create a one stop platform for the BRC, Business Tax, and BID. To assist business owners with the implementation of the tax, new online resources are now available, including a Resource Guide, a Business Tax Calculator, and FAQ’s. Visit www.cityofpaloalto.org/businesstax for these new tools and to gain news and updates. On July 1, 2023, the Palo Alto Museum and partners held a groundbreaking ceremony for the Palo Alto Museum project at the Roth Building located at 300 Homer Avenue. The County of Santa Clara Board of Supervisors notified the City that they approved a $182,448 grant to restore and repair the Roth Building windows. Regular meetings between Museum staff and the City Construction Liaison Team started in July to discuss construction progress and significant project developments. The City deposited 20% ($2 million) of its contribution in the account held jointly by the Museum and the City as required in the tenant work letter. The fully executed license agreement for a construction laydown area (extending into the southern portion of Heritage Park, between the Roth Building and the Woodmark condominium project at 325 Channing Avenue) is pending. Staff anticipates transmitting the June 30, 2022, CalPERS valuations for the City’s pension plans to the Finance Committee in October. CalPERS completes valuations using member data two years in arrears and issues annual reporting each August. As of July 2023, CalPERS provided the following preliminary investment returns as compared to a 6.8% target: -6.1% for the period ending June 30, 2022 (impact in FY 2025) Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 3 Packet Pg. 284 of 302 5.8% for the period ending June 30, 2023 (impact in FY 2026) Consistent with past practice, staff will incorporate these results in financial planning, including the Long Range Financial Forecast (LRFF) and annual budget development. Additionally, staff continues to use a lower discount rate than the 6.8% used by CalPERS to calculate the employer's normal cost ("pay-go" cost) and transmit the difference as an additional contribution to the City's Pension Trust. As part of the FY 2023 Adopted Budget, the City Council approved lowering this discount rate from 6.2% to 5.3% over two years; 5.8% in FY 2023 and 5.3% in FY 2024. CalPERS preliminary investment returns for the period ending June 30, 2023, were announced on July 19, 2023.i City Manager’s Office Trusted Response Urgent Support Team (TRUST) The $2M federal earmark is being used to augment the North County TRUST program. This includes adding outreach workers (to promote the program), case managers (to follow-up with clients and better connect them to services) and providing mental health first aid trainings in the community. Recent outreach activities included attending the City’s Municipal Services Center Open House in July. They are reaching out to neighborhood businesses, community organizations, and attending events to spread the word about TRUST and offer mental health first aid trainings. The earmark originally came with a spending deadline of September 2023. Recently, the program received a 1-year extension through September 2024. Annual Community Survey Per City Council direction, staff is conducting the Community Survey annually through a third party. Survey goals include gaining insight into residents’ perspectives about the community, including local amenities, services, public trust, resident engagement, and unmet service needs. This year, the survey will be conducted in late summer to hopefully increase survey participation. The survey will be offered in English, Spanish and Chinese. Survey results will be presented to the City Council in the fall. Point-In-Time (PIT) Count In mid-July, the County released city-specific data from the January 2023 point-in-time (PIT) count of people experiencing homelessness. The PIT count provides a snapshot of the number of people experiencing homelessness, as counted by volunteers, on a particular day. The City of Palo Alto count of people experiencing homelessness decreased 25% from 274 in 2022 to 206 in 2023. The 206 people counted included 187 unsheltered and 19 sheltered individuals. More people in Palo Alto experiencing homelessness were unsheltered (91%) than countywide (75%). Besides the snapshot of the PIT count, there is data from every time a service provider interacts with someone experiencing homelessness. Since this time last year, service providers received 162 first-time housing assistance requests from Palo Altans and 75 Palo Alto households were placed in housing.ii Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 4 Packet Pg. 285 of 302 Communications Staff is working to reactivate the City Hall lobby screen by mid- August. Curated information will be displayed on a rotating basis that shares upcoming events, community engagement opportunities, City resources and services, and more. This will be a pilot program as staff continues to evaluate technology limitations, and the staff resources needed to manage this effort longer-term. Staff provided an Uplift Local update at a Midtown Chamber of Commerce mixer in late July sharing details on the Uplift Local initiative history and future planning. In preparation for the holiday season, staff has set up a local portal to receive local business promotions. Due by September 1, holiday promotions will be shared via City communications channels to encourage the community to shop and eat local this holiday season. Businesses can submit holiday promotion information here. Other communications shared during the Council recess can be found in the Stakeholder Engagement section of this report. Community Services Department The Palo Alto Art Center experienced record summer camp registrations this year, welcoming thousands of children and youth for programs, and this year continued the youth ceramics apprenticeship program with great success. This summer nine paid interns joined the team to support programs, providing them with hand-on experience and professional development throughout the summer. The summer exhibition EARTH is on view through August 19 and concludes the Art Center’s year-long Climate Connections series. EARTH features a collaborative program with Canopy showcasing the connections between trees, art, and environmental stewardship. Thanks to funding provided by the California Cultural and Historical Endowment, the Art Center is working to produce Social and Emotional Learning Toolkits, available in Spanish/English and Spanish/Simplified Chinese, complete with materials to low- income seniors and families in Palo Alto and schoolchildren in our programs from East Palo Alto. Activities in the Toolkits were developed by Art Therapist, Anh Tran, LMFT, ATR. The Art Center hosted the Association of Clay and Glass Artists Palo Alto Clay and Glass Festival on July 15 and 16, drawing more than 10,000 attendees. During the summer, the Cubberley Artist Studio Program (CASP) artists were busy offering free programming in collaboration with Palo Alto City Library. Adrienne Defendi offered a Cyanotype workshop in the Secret Garden at the Children’s Library. Participants used special paper and liquid, along with the sun, and items found in nature, and created beautiful images. Nasim Moghadam hosted a Self-Expressive Photo Collage Workshop at the Rinconada Library, with participants ranging from ages 2 to 70. Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 5 Packet Pg. 286 of 302 May and Mik Gaspay offered a paper weaving workshop for youth at the Mitchell Park Library. Participants got the chance to try out traditional weaving patterns from the Philippines and were able to create designs woven with paper. Ala Mohseni hosted two workshops at the Mitchell Park Library where he taught participants how to make a documentary with their cell phones and how to capture and edit videos, along with special effects tips and tricks. Brittany Bradley did a demonstration of Wet Plate Collodion for teens and adults at the Rinconada Library in her unique traveling darkroom. Children’s Theatre Palo Alto Children’s Theatre opened its annual outdoor Summer Hot Dog Series with a sold-out production of Snow White in June, and continued with a 50th Anniversary Celebration of Marlo Thomas and Friends' Free to Be … You and Me. This summer, in addition to ongoing Sensory and Spectrum Friendly performances, the theatre added additional accessibility options, including ASL interpreted performances, and "read-along" options for families who benefit from having the text visible on a mobile device or tablet. In August, the Children’s Theatre will host a Day Camp for participants with special needs, in collaboration with the Magical Bridge Foundation. Plus, the Children’s Theatre is participating in its 5th annual collaboration with Stanford University Engineering Department’s Compression Forum, with this summer’s research project focused on the ethics of collaboration with artificial intelligence in arts and sciences. Open Space Open Space Rangers provided support to Public Works and Fire Department staff to clear brush and vegetation along Arastradero Road, Los Trancos Road, and Page Mill Road to reduce fire risk in the Foothills. Rangers closely monitored Open Space preserves on July 4 for visitors and preventing the use of illegal fireworks. Open Space and the Office of Emergency Services staff submitted a grant application for eucalyptus tree removal in Foothills Nature Preserve, Pearson-Arastradero Preserve, and Esther Clark Park. Palo Alto Junior Museum & Zoo The Palo Alto Junior Museum & Zoo (JMZ) was selected to receive a 2023 John F. Kennedy Center for the Performing Arts LEAD Community Asset Award for its exemplar achievement in improving accessibility in a Museum and Zoo. The JMZ welcomed 26,513 guests in June and July, and the total number of active memberships exceeded 5,000 households for the first time in July. Zoo programs have been popular all summer especially flamingo feedings and the weekday afternoon program “Meet Luna the Sloth.” The camp session served 834 campers this summer with 10 types of camps offered throughout Palo Alto including the JMZ, Stern Community Center, the Lucy Evens Baylands Nature Center, the Lou Henry Hoover Girl Scout House, and the Foothills Nature Preserve Visitor Center. Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 6 Packet Pg. 287 of 302 Parks Parks staff continued to maintain neighborhood parks, athletic fields, and courts. Staff have been working with the City’s Zero Waste team to bring all parks into compliance with the Recycling and Disposal Ordinance, which requires all facilities to provide all three waste services – garbage, recycling, and compost. New 3-sort waste stations were installed at Seale Park. Public Art wrapped up a successful mural event in June and began conversations with the Public Art Commission about growing and expanding murals Citywide. Staff is preparing for the protection of the Victor Arnautoff frescoes at the Roth building during demolition and is installing protection barriers in early August. Staff completed four additional maintenance projects at the Water Quality Control Plant, University Avenue, the Baylands Golf Links course, and at the Art Center. Staff held a public meeting with the artist for the upcoming artwork at Fire Station 4 in July and has been working with artists for Boulware Park on the artwork’s conceptual design. Artist in Residence Kirti Bassendine continued holding workshops with residents of Buena Vista Park, Alta Housing, and Avenidas as part of her community outreach and research. Her engagement with the community will culminate in a temporary artwork on King Plaza near the end of the year. Final preparations are underway for Code:ART to take place downtown October 12-14. The Recreation Department offered a variety of sports camps, recreation camps, and Special Interest Camps. Most of the camps are doing well with enrollment at historic high levels with 1,700 enrolled campers. The most popular camps are Baking and Cooking as well as Coding and STEM camps. LEGO and Academic camps also continue to be popular. The Green Energy Engineering camp had a fun visit from the Saratoga High Robotics team. The team presented their newest hand-built robot, which they recently competed with at Nationals in Texas. It was great for the campers to see the next step in real world robotics and what they can look forward to in High School. In addition to camps, the Recreation team hosted the annual 4th of July Summer Festival, and brought back the Chili Cook-Off for the first time since the pandemic. The event included live music, games, inflatables, food trucks, and chili tasting. Family Fun Movie Nights, Friday evenings continue through August at Mitchell Park. Fire Department The Palo Alto Fire Department (PAFD) and the Santa Clara County Fire Department (SCCFD) firefighters began staffing Fire Station 8 in the Palo Alto Nature Preserve. Summer 2023 is the third fire season that PAFD and SCCFD staffed Fire Station 8 since the Tri-Party Fire Agreement for Foothills Fire Station staffing was executed. Firefighters staff Fire Station 8 every day between 8 a.m. and 8 p.m., and crews Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 7 Packet Pg. 288 of 302 are available to respond to emergencies in Palo Alto, Los Altos Hills, and surrounding open spaces. This staffing rotation will continue until the weather conditions lower the wildfire risk, typically in November. Preparing for Wildfire Hiring and Recruitment Human Resources Department Library Department Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 8 Packet Pg. 289 of 302 During the summer reading program, in-person and virtual events were held at all five library locations. Events featured youth performers, author events, and arts and craft workshops led by several Cubberley Artist Studio Program artists. Office of Emergency Services th of July Safety Watch in partnership with numerous agencies (CAL FIRE, Midpeninsula Regional Open Space District, San Mateo County agencies, Santa Clara County agencies, etc.). Initiated requisitions for two vacant positions: OES Coordinator position approved in the FY2023 budget, and apart time administrative specialist. Supported City efforts to complete FEMA Public Assistance applications for reimbursement of City expenditures and damages from the January-March storms. Completed the City’s participation in the Multi-Jurisdictional Local Hazard Mitigation Plan led by Santa Clara County Office of Emergency Management. Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 9 Packet Pg. 290 of 302 Facilitated a training seminar for the new Boronda Lake/Foothills Nature Preserve Dam Emergency Action Plan. Prepared and submitted a Hazard Mitigation Grant sub-application to the State for Eucalyptus removal. Office of Transportation Car Free Streets On July 3, the City released the Request for Proposals for consultant services to study different street alternatives, configurations, and activations for Cal Ave. and Ramona St. With proposals due in August 2023, staff plans to present a contract with a preferred vendor to the City Council in fall 2023. The study is anticipated to take nine months to a year to complete and will include a robust community engagement plan. The City implemented four demonstration projects in response to feedback received from the public and stakeholders, including: Flexible Community Spaces: free public gathering places New barriers: replacing the orange water-filled barriers Public art: ground plane and building murals Pedestrian and vehicular signage: directing people to nearby destinations and parking areas Churchill Avenue Enhanced Bikeways Project Staff has been working to finalize the design of Churchill Avenue Enhanced Bikeway Project. Legal descriptions and plat maps (property line maps) were developed for the easements that require approval from PAUSD, which are expected to be approved at the school board meeting in August. Churchill Avenue/Alma Street Intersection and Railroad Crossing Safety Improvements Staff completed the final design for the Caltrain rail crossing and intersection traffic signal improvements. A construction contract for portions of this project within the City’s right-of-way was awarded and will be managed by Public Works staff. Portions of the project that fall within the Caltrain right-of-way will be managed by the Peninsula Corridor Joint Powers Board. Embarcadero Road Improvement Project (Alma Street to Emerson Avenue) Staff has been working on the design to improve bicycle and pedestrian facilities on Embarcadero Road between Alma Street and Emerson Street. Improvements include sidewalk realignment, high-visibility crosswalks, signing and striping, pedestrian lighting, landscaping, and traffic calming elements. Staff procured consultant services for repackaging the reduced scope of the project. Draft Final plans are under review. Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 10 Packet Pg. 291 of 302 Palo Alto Link The Palo Alto Link service has continued to have strong ridership and is providing around 1,000 passenger trips per week. One of the EV fleet vehicles and staff attended the MSC Open House. From March 7 through July 31, Palo Alto Link completed 18,225 rides. Staff has been improving the parking permit order process. College Terrace Residential Preferential Parking permit renewal sales began online on August 1, with permits expiring at the end of August. Crescent Park No Overnight Parking permit renewal sales begin September 4, with current permits expiring at the end of September. California Avenue Parking District permit sales were fully transitioned to the Duncan Solutions permit portal in the second quarter of 2023. Duncan Solutions manages nine parking programs in Palo Alto and sold approximately 10,000 permits in FY23. After several months of collecting feedback from the business community, staff recommended reducing off-street daily parking permit fees from $25 to $8 in City parking garages and surface lots, due to ongoing changes in visitor trends and employees reducing their commute because of hybrid work models. The $8 daily permits became active and available for purchase on July 1. Staff is working on Request for Proposals for professional services to conduct a comprehensive quiet zone study at three crossings: Churchill Avenue, Meadow Drive, and Charleston Road. This study will evaluate the feasibility of implementing a quiet zone in compliance with Federal Railroad Administration regulations and determining the safety measures to compensate for the absence of train horn sounding. Additionally, staff is working to procure the consultant services to proceed on next steps to develop final design and assist in seeking permits for implementation of Quiet zone at Palo Alto Avenue. In June, the Federal Railroad Administration (FRA) announced that they selected the Palo Alto Grade Separation Projects at Churchill Avenue, Meadow Drive, and Charleston Road and allocated $6 million towards the costs of completing the Preliminary Engineering and Environmental Phase. Additionally, in early July, the City received notification from the California State Transportation Authority (CalSTA) that the Churchill Avenue Grade Crossing was chosen for $23.7 million of funding towards the final design phase. Staff is coordinating with Santa Clara Valley Transportation Agency (VTA), Joint Peninsula Board (JPB/Caltrain), and granting agencies on the next steps for award of the funding. Staff continued to explore materials to pilot Zero Waste Bike Rodeos and coordinated with PAUSD staff regarding data collection and education programming. Staff have continuously worked to improve traffic signal operations throughout the City as well as regularly monitoring and adjusting to changing traffic conditions. Staff is developing the scope and Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 11 Packet Pg. 292 of 302 procurement for an update of the central operations system and intelligent transportation systems (ITS) to incorporate current standards and technologies. Planning and Development Department Boards and Commissions Continued to Meet Santa Clara County’s Environmental Impact Report (EIR) for its Housing Element and Stanford Community Plan iii Proposed Priority Development Area Policy Development Hiring Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 12 Packet Pg. 293 of 302 Police Department Making Community Connections The Police Department (PD) held its third “Breaking with the Law” event of 2023 on July 12 at the Pop Tea Bar in Midtown. This local café was specifically chosen for its popularity in the afternoon with families and teens, with the intention to reach a different segment of the community than standard coffee-drinking adults. Planning for the next Breaking with the Law event is underway for early fall. On Tuesday, August 1, PD hosted two concurrent National Night Out events at Johnson Park and Bol Park. Staff attended to talk with the community and showcase various aspects of the Department and all aspects of public safety services offered. At both locations, there were games, emergency vehicles on display (including police cars, vehicles from the Fire Department and Office of Emergency Services, as well as animal control and park ranger trucks) and public safety personnel. Consistent with last year, teams of PD personnel also visited resident-hosted block parties throughout town. Recruiting and Hiring Recruiting and hiring continued to be a focus to fill existing officer, dispatcher, and administrative vacancies. Over the summer, the Court Liaison Officer position was filled, closing out the final vacancy in the Records Unit. Once all the Records new hires have been trained, the PD will expand its hours of operation to better serve the public and increase the frequency of our Press Log distribution. PD also hired two entry level police officers, with an additional lateral police officer in the hiring process to join the Department soon. Additionally, the PD hired three dispatchers, one of which is a lateral from a regional dispatching center. Automated License Plate Reader (ALPR) – Flock Safety Over the last few months, the PD coordinated with Public Works, Caltrans, and Flock Safety on planning, engineering, and installing the twenty fixed ALPR cameras approved by Council. Staff received training on the new ALPR system to ensure policy compliance and department expectations for its use. Six of the cameras are installed, with the remainder expected to be installed in the coming weeks. These cameras have already led to the identification of criminal activity associated with regional theft crews and other prolific property crime trends in Palo Alto and the Bay Area. Foothills Roadside Vegetation Clearance/Fire Prevention For a second consecutive year, efforts to contract for roadside vegetation clearing work were unsuccessful as no bids were received in response to the City’s solicitation. As a result, the work became a major summer effort for an in-house crew of 13 Public Works, Public Services Division staff and 2 Community Services, Open Space Division staff. Fire mitigation work involved clearing dry grass, weeds, and brush 10-15 feet from the edge of the road or to a fence line and removing dead trees/branches for 10-15 feet of vertical clearance. Over the span of 3 weeks and over 2,300 work hours, the crew cleared a Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 13 Packet Pg. 294 of 302 total of 20 miles of road. Work locations included Los Trancos Road, Arastradero Road, and Page Mill Road. Capital Improvement Program Projects Progress Unleaded Fuel at Palo Alto Airport Regional Purification Facility Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 14 Packet Pg. 295 of 302 Stormwater Program The Stormwater Compliance team has been working to comply with the new, more stringent Bay Area Stormwater Permit that became effective in July. The new permit requires constructing more green stormwater infrastructure and additional trash control projects, controlling sources of mercury and polychlorinated biphenyls (PCBs) from older industrial and commercial areas in the City, and other projects. The Fats, Oil and Grease Compliance team filled their Investigator position after a long vacancy and is working to revamp their program to align with industry best practices and better protect the City’s sanitary sewer system. Utilities Department Staff continue to move forward with the updated Sustainability and Climate Action Plan implementation, including the heat pump water heater pilot program. The program requires evaluating issues related to grid impacts and permitting. The first neighborhood grid modernization project is in progress and staff are preparing resources for residents in those areas who are interested in electrifying other appliances beyond water heaters. Staff anticipate bringing a recommendation to Council on joining the Statewide GoGreen Financing program in September for consideration. Staff also continue progress on other key priorities such as completing the Sea Level Rise Vulnerability Assessment and beginning work on the Sea Level Rise Adaptation Plan. Staff are also implementing the updated tree ordinance and working to complete the OneWater Plan. Progress continues implementing Council direction proceeding with the Fiber Rebuild project and Phase 1 of the Fiber-to-the-Premises (FTTP) project. The Utilities Advisory Commission (UAC) will discuss the Palo Alto Fiber project and areas of deployment at their September 6 meeting. Staff anticipate a Council update and consideration of next steps in the fall. The Citywide engineering design for the electric grid modernization project is underway. The grid modernization project will overlap with the Fiber Expansion Plan in engineering make-ready work and construction as aligning the projects will help minimize costs and community disruptions. However, depending on how closely the grid modernization project and fiber projects are aligned, there may be significant milestone and timeline impacts to the Fiber Expansion Plan. The City must conduct a California Environmental Quality Act (CEQA) analysis to evaluate the potential impacts of the project on various environmental factors and identify whether those impacts can be mitigated. In addition, the City needs to coordinate an agreement with AT&T for sharing space on utility poles to install new fiber optics attachments, while remaining in compliance with California Public Utilities Commission General Order 95 (GO 95) requirements for overhead electric line construction for electric utility service and worker safety. Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 15 Packet Pg. 296 of 302 Update on Engineering and Operations Projects Electric Engineering continues to underground utilities in the Foothills to reduce fire risk. The section of overhead line in the Arastradero Preserve between Arastradero and Page Mill Road intersection and Foothills Park will be transferred to the new underground line by August 1, 2023. The Grid Modernization and Electrification study is in progress and on track for completion this fall . Advanced planning is occurring for expected rotation outage blocks in late summer due to systemwide shortages caused by the lack of reliable energy sources when renewable resources such as solar and wind become unavailable. Water-Gas-Wastewater (WGW) Engineering and Operations continued working with a contractor for the Sanitary Sewer Replacement Project 31 (SSR 31), which started on July 31. Planning for public outreach in advance of construction is underway. The City received bids for the Water Main Replacement Project 29 (WMR 29) and began the process of awarding the construction contract. Staff prepared and submitted a Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) federal grant application for approximately $16.5 million in funding to complete three priority gas projects. The City deployed about 1,600 electric, gas, and water Advanced Metering Infrastructure (AMI) meters. The City has nearly completed the system integration amongst the AMI network, meter data management, customer billing information, outage management, and geographic information systems. Utilities is conducting parallel billing of two-meter routes to validate the accuracy of the meter read and billing in the customer billing system before full deployment. AMI full deployment for residential customers is tentatively scheduled to begin in mid-September 2023. Depending on availability of meters and equipment, staff will complete residential AMI deployment by the end of 2024. Due to supply chain issues, the estimated rollout timeline of electric commercial AMI meters is mid-2024 through mid-2025. The new Outage Management System (OMS) will substantially improve the City’s ability to notify customers and mobilize resources in response to electric outages and emergencies, and is expected to go live in September 2023. The new system will alert customers via text, voice, or email of an electrical outage. The system also provides management and staff with additional details on outage events and updates as the status of an outage situation changes. Once the OMS is live, customers with a mobile number will be initially subscribed to the texting service and can opt-out at any time. The 11% voluntary water use reduction request implemented by the San Francisco Public Utilities Commission (SFPUC) and State of California’s emergency drought regulations expired in June. As a result, Palo Alto lifted the 2-day per week watering restriction. The State left some water waste restrictions in place including no washing hardscapes, no watering within 48 hours of a rain event, and a ban on the use of drinking water to irrigate decorative grass at commercial, industrial, and institutional Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 16 Packet Pg. 297 of 302 sites. Staff are focusing outreach on making conservation a way of life, reminding the community about Palo Alto’s permanent water use restrictions, and spreading awareness of the suite of rebates and educational workshops available to help residents and businesses conserve water. Water Quality Report FISCAL/RESOURCEIMPACT This report is informational only and items will be brought before the City Council independently, should they need additional fiscal or policy considerations. STAKEHOLDER ENGAGEMENT During recess, the City Manager’s Office Communications Office drafted and/or coordinated important updates to keep the community aware of—and encourage engagement in—City Initiatives. Staff collaborated with several departments to update website pages and online resources. A new permit portal consolidates planning and development permits available in one, easy to use location. The Teen Services web page now shares cross-departmental opportunities for teens to get involved and find relevant resources. The City’s heat pump water heater program page was updated to share community details about the City’s program offering free, expert help with permits, installation, and rebates worth thousands of dollars to upgrade to a heat pump water heater. Zero Waste launched Zero Waste Living with a new online portal sharing waste reduction tips heat pump water heater program page was updated to share community details about the City’s program offering free, expert help with permits, installation, and rebates worth thousands of dollars to upgrade to a heat pump water heater. Website Statistics for the 2nd Quarter include: 763,231 total CityofPaloAlto.org pageviews Top web page visits include Utilities Department (14,836), Foothills Nature Preserve (14,177), Children’s Theatre (10,392), Palo Alto Art Center (9,369), and Registration for Activities and Classes (8,702) (9,369), and Registration for Activities and Classes (8,702) (8,702) Other communications shared during the Council recess include: Existing & Expanded Renter Protections, Plus Changes Being ConsideredExisting & Expanded Renter Protections, Plus Changes Being Considered Summer Family Fun in Palo AltoSummer Family Fun in Palo Alto Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 17 Packet Pg. 298 of 302 Connecting to Palo Alto Fiber’s FutureConnecting to Palo Alto Fiber’s Future Celebrate the Arts in Palo AltoCelebrate the Arts in Palo Alto Race and Equity Updates July 2023Race and Equity Updates July 2023 Be Prepared & Fire Safe This SeasonBe Prepared & Fire Safe This Season Newell Road Bridge Replacement Project Status UpdateNewell Road Bridge Replacement Project Status Update Exploring the Best Summer Activities in Palo Alto: A Local GuideExploring the Best Summer Activities in Palo Alto: A Local Guide ENVIRONMENTAL REVIEW This report is for informational purposes only with no action required by the Council, and therefore it is not a project as defined by the California Environmental Quality Act (CEQA). ATTACHMENTS None APPROVED BY: Ed Shikada, City Manager i CalPERS preliminary investment returns for the period ending June 30, 2023. https://www.calpers.ca.gov/page/newsroom/calpers-news/2023/calpers-preliminary-investment-return-fiscal- year-2022-23?utm_source=esubscriptions&utm_medium=email&utm_campaign=CalPERS-News ii Santa Clara County Point In Time Count 2023: https://osh.sccgov.org/continuum-care/reports-and- publications/santa-clara-county-homeless-census-and-survey-reports iii City Comment Letter for the Santa Clara County EIR-Housing Element and Stanford Community Plan https://www.cityofpaloalto.org/files/assets/public/planning-amp-development-services/palo-alto-draft-eir- comments-ssc-hescp-update-072423.pdf Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 18 Packet Pg. 299 of 302 City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Public Works Meeting Date: August 14, 2023 Report #:2306-1647 TITLE Fiscal Year 2023 Annual Evaluation Report for the Santa Clara County Multi-Jurisdictional Program for Public Information on Flood Preparedness and Awareness, and the Resulting Community Rating System Flood Insurance Discounts RECOMMENDATION This is an informational report and no Council action is required. BACKGROUND The Community Rating System (CRS) is a voluntary program under the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program that allows communities to earn flood insurance premium discounts for their residents and businesses. Communities earn CRS credit points for activities that promote flood risk reduction practices and encourage residents and businesses to purchase flood insurance. CRS Class Ratings are assigned at 500- point increments, and each improvement in Class Rating nets an additional 5% flood insurance premium discount. The CRS Class Ratings range from 1 to 10, with 10 being the lowest rating and 1 being the highest. The City of Palo Alto has participated in the CRS program since 1990 and has been rated as a Class 6 community since 2017, affording residents and businesses a 20% or 10% (outside of Special Flood Hazard Area, or SFHA) discount on their flood insurance premiums. The CRS rating was due to a significant effort on flood awareness and floodplain management by the City. Neighboring cities have earned similar CRS ratings (Mountain View – 7, East Palo Alto – 8, Los Altos – 8, Sunnyvale – 7). The CRS Coordinator’s Manual includes the option to implement a regional Program for Public Information (PPI). Under the PPI, a community or group of communities work together to create and deliver customized and consistent flood risk reduction outreach messages. By disseminating these messages, each community earns points that can improve their CRS rating. The number of CRS credit points earned depends on how extensive the implemented program is within each community’s boundaries. City of Palo Alto has earned up to 122 points for its PPI efforts. Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 1 Packet Pg. 300 of 302 City of Palo Alto residents and businesses pay $2.3 million (per FEMA data as of June 6, 2023) for flood insurance premiums per year. The total savings from the 20% insurance discount achieved by the City on behalf of its residents due to its CRS participation is approximately $500,000 per year (per FEMA data as of June 6, 2023). Without CRS, the residents and businesses would have paid $2.8 million. Palo Alto participates in the Santa Clara County Multi- Jurisdictional program to enhance the effectiveness of the flood risk messages to residents, reduce flood risks, and to maintain or improve the City’s CRS rating of 6. As required by the terms of the PPI, the regional PPI committee must convene annually to evaluate whether the flood risk reduction messages are still appropriate and adjust them as needed. A report to FEMA must be submitted annually describing the PPI implementation. The annual report is transmitted to the council of each participating agency to provide updates on the various flood preparedness and awareness outreach programs that the Santa Clara County Multi-Jurisdictional PPI has undertaken for the past year. ANALYSIS 1 The report highlights the elements of the flood safety outreach programs implemented by the eleven Santa Clara County communities (Cupertino, Gilroy, Los Altos, Milpitas, Morgan Hill, Mountain View, Palo Alto, San Jose, Santa Clara, Santa Clara County, and Sunnyvale) that participate with the Santa Clara Valley Water District (Valley Water) in CRS. Valley Water, along with representatives from each of the participating communities, developed the original 2015 PPI and the associated annual report. The committee meets annually to evaluate and approve the PPI. The 2023 report was created based on meetings that occurred on March 21, 2023 and May 16, 2023. The final version of the 2023 PPI was presented to and approved by Valley Water’s Board of Directors on July 7, 2023. The worksheet on Appendix A lists the outreach projects, implementing agencies, and the messages associated with each of the projects; similarly, Appendix B of Attachment A lists the non-credited CRS outreach projects. Every year, participating communities must present the PPI plan to the legislative bodies to continue receiving CRS credit. The 2022 Santa Clara County Multi-Jurisdictional PPI was presented to Council on August 8, 2022.2 Staff will continue to provide information to Council on the Santa Clara County Multi-Jurisdictional PPI on a yearly basis after the end of each Fiscal Year to achieve the maximum number of CRS credit points and associated flood insurance premium discounts for the community. 1 2023 Santa Clara County Multi-Jurisdiction Program for Public Information Annual Report 2 City Council, August 8, 2022; Agenda Item #9, SR #14466 Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 2 Packet Pg. 301 of 302 FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW APPROVED BY: Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 3 Packet Pg. 302 of 302