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Home My WebLink About2010-08-02 City Council Agenda Packet 08/02/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council Chambers on the Friday preceding the meeting. Special Meeting Council Chambers August 2, 2010 5:30 PM ROLL CALL CLOSED SESSION Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. THE FOLLOWING CLOSED SESSION WILL BE HELD WITH THE CITY LABOR NEGOTIATORS 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his designees pursuant to Merit System Rules and Regulations (James Keene, Pamela Antil, Dennis Burns, Lalo Perez, Joe Saccio, Russ Carlsen, Sandra Blanch, Marcie Scott, Roger Bloom, Darrell Murray) Employee Organization: Local 1319, International Association of Firefighters Authority: Government Code Section 54957.6(a) SPECIAL ORDERS OF THE DAY 2. Adoption of a Resolution Expressing Appreciation to Maya Spector upon Her Retirement ATTACHMENT 3. Appointments to the Planning and Transportation Commission for Two Four Year Terms Ending on July 31, 2014 2 08/02/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. ATTACHMENT 3A. Adoption of a Resolution Proclaiming September Emergency Preparedness Month ATTACHMENT CITY MANAGER COMMENTS ORAL COMMUNICATIONS Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration or Oral Communications period to 30 minutes. APPROVAL OF MINUTES June 23, 2010 June 28, 2010 July 12, 2010 CONSENT CALENDAR Items will be voted on in one motion unless removed from the calendar by two Council Members. 4. Adoption of Resolution Establishing Fiscal Year 2010-2011 Property Tax Levy of $ 17.11 per $100,000 of Assessed Valuation of the City of Palo Alto’s General Obligation Bond Indebtedness (Measure N Library Projects) CMR 337:10 and ATTACHMENT 3 08/02/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. 5. Utilities Advisory Commission Recommendation that Council Approve the Use of Up to $75,000 in Calaveras Reserve Funds to Partially Fund a $250,000 Energy/Compost Feasibility Study and Environmental Impact Initial Study CMR 323:10 and ATTACHMENT PUBLIC COMMENT 6. Approval of a Contract with Alternative Resources Inc. in the Total Amount Not To Exceed $197,758 for Energy/Compost Feasibility Study and Environmental Impact Initial Study CMR 333:10 and ATTACHMENT 7. Approval of Contract Amendment No. One with Callander Associates Landscape Architecture, Inc., to Add $14,829 for Greer Park Renovation Construction Administration Services for a Total Contract Amount Not to Exceed $191,015 – CIP #PE-09002 CMR 319:10 and ATTACHMENT 8. Adoption of a Resolution Expressing Appreciation to Alex Ameri Upon the Completion of His Term as a Utilities Advisory Commissioner ATTACHMENT 9. Adoption of an Ordinance Amending the Budget for Fiscal Year 2011 to Provide Appropriations of $97,134 Within the Residential Parking Permit Program Fund for the College Terrace Residential Parking Permit Program (RPPP); and Adoption of a Resolution Amending the Fiscal Year 2011 Municipal Fee Schedule to Add New Fees for the Residential Parking Permit Program (RPPP) in the College Terrace Neighborhood 4 08/02/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. CMR 330:10 and ATTACHMENT 10. Approval of a Contract with Peterson Power Systems in a Total Amount Not to Exceed $201,853 for the Overhaul of a Caterpillar Model 3412e Diesel Engine and the Installation of a Required Best Available Control Technology (BACT) Diesel Emissions Retrofit Device CMR 304:10 and ATTACHMENT 11. Adoption of a Resolution Authorizing the City Manager to Submit a Grant Application to the State of California Department of Housing and Community Development for the HOME Investment Partnerships Program (HOME) Funding for 801 Alma Family Housing Project for an Amount Up to $3 million CMR 321:10 and ATTACHMENT 12. Adoption of a Resolution of the Expressing Appreciation to Norman Brown Upon His Retirement ATTACHMENT 13. Adoption of a Resolution Expressing Appreciation to Juan Colin Upon His Retirement ATTACHMENT 14. Approval of Amendment to Contract with Downtown Streets Team to Add $69,888 for Additional Janitorial Services for the City’s Five 5 08/02/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Downtown Parking Garages for a Total of $107,744 for One Year; Adoption of a Budget Amendment Ordinance to Provide Appropriations of $69,888 Within the Special Revenue Parking District Fund for Additional Janitorial Services for the City’s Five Downtown Parking Garages CMR 336:10 and ATTACHMENT 15. 2ND READING Adoption of an Approval of an Amendment to Ordinances Regarding Publications of Board & Commission Recruitments: Adoption of an Ordinance Amending Sections 2.18.030, 2.20.015, 2.21.020, 2.22.015, 2.23.020, 2.24.020, 2.25.020, and Section 16.49.030 of the Palo Alto Municipal Code to Delete the Publication Requirements for Board and Commission Recruitment Ads and Adding Section 2.16.060 to Establish the Publication of One Board and Commission Recruitment Advertisement in a Two-Week Period (First reading July 19, 2010 – Passed 9-0) 16. Approval of Amendment to City Manager's Employment Agreement Relating to Housing Capital Improvements and City Loan and Capital Improvements Plan Up to $250,000 and Adoption of Ordinance Amending the Fiscal Year 2011 Budget in the Amount of $125,000 from the General Fund Budget Stabilization Reserves for Capital Improvements to City Manager's Home CMR 335:10 and ATTACHMENT AGENDA CHANGES, ADDITIONS, AND DELETIONS HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. ACTION ITEMS Include: Public Hearings, Reports of Committees/Commissions, Ordinances and Resolutions, Reports of Officials, Unfinished Business and Council Matters 6 08/02/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. 17. Approval of Response to the 2009-2010 Santa Clara County Civil Grand Jury Report “Cities Must Rein In Unsustainable Employee Costs” CMR 340:10 and ATTACHMENT 18. Adoption of Two Resolutions: (1) Amending Section 1401 of the Merit System Rules and Regulations to Adopt a New Memorandum of Agreement with SEIU Local 521 for Classified Employees and (2) Adopting a Compensation Plan for SEIU Classified Personnel and Rescinding Resolution Nos. 8657, 8658, 8727, 8800, 8833, 8848, 8908, 8909, 8916, 8951, 8994 and 9047 CMR 339:10 and ATTACHMENT 19. City Clerk’s Report Certifying Sufficiency of Charter Amendment Petitions Regarding Adding Article IX Fire and Emergency Medical Services Minimum Protection and Adoption of Resolution Calling a Special Election for November 2, 2010 Submitting to the Electorate for Special Election an Initiative Measure to Amend the Charter of the City of Palo Alto to Specify Minimum Staffing and Service Levels for Fire Department Personnel and of Fire Stations and Fire Station Locations and Require a Referendum Vote for any Proposal to Reduce Such Levels (Item continued from July 12, 2010) CLERK REPORT MANAGER REPORT 20. Adoption of a Resolution of the Council of the City of Palo Alto Calling a Special Election for November 2, 2010 Submitting to the Electorate for Special Election a Measure to Eliminate Binding Interest Arbitration Requirements for Disputes with Public Safety Employees by Repealing Article V of the City Charter CMR 341:10 and ATTACHMENT 7 08/02/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. 21. Adoption of a Resolution Calling a Special Election for November 2, 2010 Submitting to the Electorate for Special Election a Measure to Amend Article III, Section 3 of the Charter to Change City Council Elections to Even-Numbered Years and Extend the Terms of Current Council Members to Five Years CLERK REPORT PUBLIC COMMENT 22. Public Hearing: Regarding Conduit Financing for the Keys Family Day School Project Located at 3981 El Camino Real and 2890 Middlefield Road, Palo Alto, and Adoption of a Resolution Approving the Issuance of Revenue Bonds Series 2010 by the California Municipal Finance Authority in an Aggregate Principal Amount Not to Exceed $20,000,000 for the Purpose of Financing and/or Refinancing and Acquisition, Construction, Improvement and Equipping of Educational Facilities for the Keys Family Day School CMR 325:10 and ATTACHMENT 23. Public Hearing: To Confirm Weed Abatement Report and Adoption of Resolution Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein CMR 309:10 and ATTACHMENT 24. Report from High Speed Rail Standing Committee on Recent Activity and Request for Authorization for the City Manager to Enter Into a Contract with Hatch Mott and McDonald in an Amount Not to Exceed $120,000 for On-Call Engineering Services Related to High Speed Rail (Item continued from May 3, 2010) 8 08/02/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. CMR 310:10 and ATTACHMENT 25. Designation of Voting Delegate for the League of California Cities Annual Conference CLERK REPORT COUNCIL MEMBER QUESTIONS, COMMENTS, AND ANNOUNCEMENTS Members of the public may not speak to the item(s). ADJOURNMENT Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact 650-329-2550 (Voice) 24 hours in advance. 2 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO MAYA SPECTOR UPON HER RETIREMENT WHEREAS, Maya Spector began her employment with the City of Palo Alto on March 27, 1989, and has served the citizens of Palo Alto by providing exceptional public library service for over 21 years; and WHEREAS, Maya Spector began her career at the Palo Alto City Library as a Senior Children’s Librarian at the Children’s Library; and WHEREAS, Maya Spector received a Community Services Department Employee of the Year in 1992; and WHEREAS, Maya Spector was promoted to Coordinator of Library Programs in 2006; served as the Library’s School Outreach Liaison to promote library services and programming to students, parents, and teachers; and was recognized by the Palo Alto Unified School District Board for her contributions to the District in 2007; and WHEREAS, Maya Spector was promoted to Supervising Librarian at the Children’s Library in December 2008; and WHEREAS, Maya Spector has provided an uncountable number of library programs designed to educate and delight children and families, and selected thousands of collection items meeting the educational and recreational needs of children; and WHEREAS, Maya Spector is known for her excellence in storytelling, knowledge of childrens’ literature, dedication to youth and families, and thoughtful leadership. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Palo Alto, hereby commends the outstanding public service of Maya Spector and records its appreciation as well as the appreciation of the citizens of the City of Palo Alto for her services and contributions rendered during her 21 years of employment with the City. INTRODUCED AND PASSED: August 2, 2010 ATTEST: APPROVED: ___________________ ______________________ City Clerk Mayor APPROVED AS TO FORM: ____________________ ______________________ City Attorney City Manager August 2, 2010 HONORABLE CITY COUNCIL City of Palo Alto SUBJECT: Appointments to the Planning and Transportation Commission for two four year terms ending on July 31, 2014. Dear Council Members: On Monday, August 2, 2010 the City Council should vote to appoint two four year terms to the Planning and Transportation Commission ending on July 31, 2014. On July 15, 2010 Wick Goodspeed withdrew his application and on July 26, 2010 Tracy Herrick withdrew his application. The Candidates are as follows: Brent Butler Sarah Carpenter Arthur Keller Samir Tuma Voting will be by paper ballot. Five votes are required to be appointed. The first two candidates that receive at least five votes will be appointed. Respectfully submitted, Ronna Jojola Gonsalves Deputy City Clerk cc: Donna Grider, City Clerk Curtis Williams, Staff Liaison CITY OF PALO ALTO PROCLAMATION Declaring the Month of September to be Emergency Preparedness Month in the City of Palo Alto 3A Whereas, this is a unique opportunity for Palo Alto to join forces with thousands of other communities across the country to promote personal preparedness; Whereas; the City of Palo Alto wants to change perceptions about emergency preparedness and help Palo Altans take simple steps to get "Ready" and to prepare for emergencies and disasters. Even though we don't know when or where disasters and emergencies may strike, we do know that we can do more to be prepared for the unexpected; Whereas, many things compete for our attention these days. While it may seem overwhelming or unimportant to get prepared, we know from experience that taking steps to prepare ahead of time can help you respond better and stay safer in an emergency; Whereas, the time and effort you invest now in preparing will help you and your family navigate through and recover quickly from what may come our way at the most unexpected moment. The time to do planning is now before the next disaster strikes; . Whereas, the Palo Alto/Stanford Citizen Corps Council (CCC) plays a vital role in preparedness. The group's mission is to harness the power of individuals, businesses, and organizations through education, training and volunteer service to make our community resilient, safe, strong and prepared to respond to and recover from threats of 1) natural disasters, 2) human-caused disasters, 3) crime, 4) public health emergencies, 5) terrorism, and 6) disasters of all kinds. Highlighting several of the responsibilities of the CCC: • Involving the community in prevention, preparedness, and response activities • Recognizing all activities that promote prevention, preparedness, and response training • Organizing community events to promote emergency planning • Offering citizens volunteer opportunities, educational information, and training courses to address crime, terrorism, and natural or man made disasters; • Fostering a feeling of mutual support by building community networks Whereas, the CCC is planning numerous events throughout September and October that will be held locally to help residents take one step forward in preparedness; NOW, THEREFORE, I, Patrick Burt, Mayor of the City of Palo Alto, on behalf of the Palo Alto City Council and the Palo Alto/Stanford Citizen Corps Council do hereby declare the month of September to be Emergency Preparedness Month in the City of Palo Alto. I call upon all citizens of the Palo Alto Community to join together as we support the 7th annual National Preparedness Month in September sponsored nationally by the Department of Homeland Security. Patrick Burt Mayor City of Palo Alto September 2010 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DATE: AUGUST 2, 2010 REPORT TYPE: CONSENT DEPARTMENT: ADMINISTRATIVE SERVICES CMR: 337:10 SUBJECT: Adoption of Resolution Establishing Fiscal Year 2010-11 Property Tax Levy of $17.11 per $100,000 of Assessed Valuation for the City of Palo Alto's General Obligation Bond Indebtedness (Measure N) RECOMMENDATION I) Adopt a resolution (Attachment A) approving the establishment of the Fiscal Year 201 0-11 property tax levy of $17.11 per $100,000 of Assessed Valuation for the City of Palo Alto's Meas\U'e N General Obligation Bond (First Series). BACKGROUND On November 4, 2008, City voters passed Meas\U'e N which gave the City authority to issue a maximum amount of $76,000,000 million of General Obligation bonds (the "Bonds") for capital improvements to the Mitchell Park, Downtown, and Main libraries and to the Mitchell Park community center. The City successfully sold the first of two Bonds to provide $58.5 million in funds for Mitchell Park Library, Mitchell Park Community Center, and Downtown Library construction costs as well as design costs for the Main Library. The Bonds were p\U'chased by Citigroup Global Markets, Inc: on June 9, 2010 and with a closing on June 30, 2010. The True Interest Cost for the Bonds came in at 4.207 percent, which is 1.22 percent lower than the City originally projected in 2008. As a result, the City estimated it could realize up to $14.5 million in cumulative interest payment savings over 30 years for the first series of 30-Year Bonds. Both Standard and Poor's (S &P) and Moody's awarded their highest credit ratings, Triple A, to the Bonds. DISCUSSION Debt service payments on the newly issued bonds are paid through ad valorem taxes on all taxable land and improvements (both sec\U'ed and unsec\U'ed assessment roll) within the City. Staff is seeking Council approval of the attached resolution (Attachment A) which authorizes the placement of an ad valorem property tax levy in the amount of $0.01711 per $100 or $17.11 per $100,000 in Assessed Valuation (A V) for the sec\U'ed tax roll and $0 per $100 in A V for the unsec\U'ed tax roll. A house with an assessed value of $1 million, for example, would see an annual assessment of $171.10 on their property tax bill. Ultimately, the levy applies to both taxable secured and unsecured CMR: 337:10 Page 1 of2 property. According to the County, however, the levy only applies to the secured property tax roll in the first year. In following and subsequent years a levy will be placed on unsecured property. It is important to note that the $17.11 assessment is for the first series of bonds and that a second series of bonds will be issued for construction costs on the Main Library. The assessment for the . second series will likely appear in the 2012-13 property tax year. FISCAL IMPACr The first series bond issuance resulted in 2011 calendar year debt service expenditure of approximately $3.5 million and Council approval ofthc attached resolution will result in ad valorem tax levy revenue of the same amount. Again, property owners will see a levy of$17.ll per $1 00,000 of A V on their 2010-11 property tax statement. ENVIRONMENTAL REVIEW There is no environmental review required for this report. ATTACHMENTS: Attachment A: Resolution of the Council of the City of Palo Alto Establishing the Fiscal Year 2010-11 Propelty Tax Levy of$17.11 per $100,000 of Assessed Valnation for the City's General Obligation Bond Indebtedness (Measure N Library Projects) Attachment B: ('Jeneral Obligation Bonds, Election of 2008, Series 2010 Tax Rate Calculation Based on 20 I 0-11 Assessed Values PREPARED BY: /~ d YAN DEP ARTMENT HEAD APPROVAL: CITY MANAGER APPROVAL: fe "" LMJ:zo JAMES KEENE . r City Manager CMR:337:10 Page 2 of2 ATTACHMENT A ** NOT YET APPROVED ** Resolution No. ---Resolution of the Council of the City of Palo Alto Establishing the Fiscal Year 2010-11 Property Tax Levy of $17.11 per $100,000 of Assessed Valuation for the City's General Obligation Bond Indebtedness (Measu:e N Library Projects) WHEREAS, at the City of Palo Alto's ("City") general election held on November 4, 2008, more than two thirds of voters approved Measure N, authorizing the issuance of general obligation bonds in the amount not to exceed $76,000,000 (the "Authorization") to fund construction of a new Mitchell Park Library and Community center and renovation and improvements to Downtown and Main libraries; and WHEREAS, pursuant to the Authorization, the City issued one series (Series 20 lOA) of general obligation bonds in June 2010 that yielded $58.5 million for project needs; and WHEREAS, the City is obligated to levy ad valorem taxes on all property within the City subject to taxation by the City, without limitation on rate or amount (except with respect to certain personal property which is taxed at limited rates), for the payment of the debt service on the Bonds; and WHEREAS, the City is obligated to direct the County of Santa Clara to collect such ad valorem taxes in such amounts and at such times as is necessary to ensure the timely payment of debt service on the Bonds; and WHEREAS, the amount of the annual ad valorem tax levied by the City to repay the Bonds is determined by the relationship betweon the assessed valuation of taxable property in the City and the amount of debt service due on the bonds. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION I. Pursuant to the Authorization, an ad valorem property tax is hereby established to be levied on all land and improvements in the City of Palo Alto during fiscal year 2010-2011 in the amount of $0.01711 per $100 in assessed value for the secured and utility tax roll and 0.0 per $100 in assessed value for the unsecured tax roll based on the calculations set forth in the attached Exhibit "A". SECTION 2. The City's Director of Administrative Services shall cause a certified copy of this Resolution to be delivered to the Auditor of the County of Santa Clara for entry in the assessment book of the respective sums in dollars and cents II If 100726 sh 8161348 ** NOT YET APPRQVED ** SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore,.no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Sr. Deputy City Attorney City Manager Director of Administrative Services 100713 sh 8261348 2 Attachment B City of Palo Alto General Obligation Bonds, Election of 2008, Series 2010 Tax Rate Calculation Based on 2010-11 Assessed Values A) 2010-11 Taxable secured assessed valuation of the City 2010-11 Semi-annual debt service requirement Total 2010-11 annual debt service payment County Administration Fee (0.25% of Principal & Interest) B) Total 2010-11 annual debt service requirement 12010-11 secured tax rate per $100 of secured assessed value (Line BIA*100) February 1, 2011 August 1, 2011 2010-11 secured tax rate per $100,000 of secured assessed value (Line B/A*100,000) S:\ASO\Treasury\T Narsyan\Dabt Service\2010 General Obligation (Library) Bonds\GO Tax Rate Calculation. xis $ 20,460,699,520.00 $ $ 1,471,355.02 2,020,164.38 3,491,539.40 8,726.65 3,500,268.25 0.01711 I 17.11 7127120102:44 PM TO: FROM: DATE: HONORABLE CITY COUNCIL CITY MANAGER AUGUST 2, 2010 DEPARTMENT: UTILITIES AND PUBLIC WORKS CMR: 323:10 REPORT TYPE: CONSENT SUBJECT: , Utilities Advisory Commission Recommendation that Council Approve the Use of Up to $75,000 in Calaveras Reserve Funds to Partially Fund a $2~0,000 Energy/Compost Feasibility Study and Environmental Impact Initial Study EXECUTIVE SUMMARY On April 5, 2010, Council directed staff to conduct a feasibility study of an anaerobic digester that would use yard waste, food waste, and possibly sewage sludge to produce biomethane. The biomethane could be used either directly as a substitute for natural gas or burned in a generator to produce electricity. Staff is recommending under a separate agenda item approval of a contract to prepare this feasibility study. This report and recommendation would provide a portion of the funding for the feasibility study. The feasibility study is expected to cost about $250,000, of which 25% will from the Electric Fund. Staff and the Utilities Advisory Commission recommend that the Electric Fund's share of the cost of this study be funded from the Electric Fund account known as the Calaveras Reserve. REQUEST Staff and the Utilities Advisory Commission (UAC) recommend that the Council approve the funding of 25 percent of the cost of an Energy/Compost Feasibility Study and Environmental Impact Initial Study, up to a total of $75,000, from the Calaveras Reserve. BACKGROUND The City of Palo Alto currently handles organic residuals in the following ways: 1. Yard trimmings are composted at the Palo Alto landfill site in uncovered long, thin rows, or windrows; 2. Residential food scraps are disposed of with the garbage and landfilled in South San Jose; 3. Commercial food scraps are increasingly being source separated and, composted near Gilroy, CA, with the remainder being landfilled in South San Jose; 4. Wastewater Biosolids are dewatered and incinerated at the Regional Water Quality Control Plant (RWQCP) inPalo Alto. 323:10 Page 1 4 Due to the anticipated closure of the Palo Alto landfill and its associated compost facility, Palo Alto has been exploring its options. City Council appointed a Blue Ribbon Compost Task Force (Task Force) made up of community members to make recommendations for organics management. The Task Force recommended dry anaerobic digestion at or near the RWQCP. On April 5,2010 Council directed staff to: 1. Hire a consultant to evaluate dry anaerobic digestion; 2. Prepare an environmental impact review focused on 8 to 9 acres of Byxbee Park; 3. Continue not accepting commercial refuse at the Palo Alto Landfill; . 4. Study energy conversion-technologies including anaerobic digestion at the R WQCP as part of its Facility Planning process; and 5. Pursue partnering opportunities for organics processing within 20 miles of Palo Alto. On May 24, 2010, Council received an information report (CMR: 251 :10 -attached to this report as Attachment B) that described the plan to engage a consultant to complete the feasibility study as directed by Council. The report states that the funding for the study will come from the relevant Enterprise Funds. On January 12, 2009, Council directed staff to work with the UAC to review possible projects that would benefit electric ratepayers for consideration of funding from the calculated "excess" Calaveras Reserve Fund (CMR: 110:09). On June 15,2009, as recommended by staff, the UAC, and the Finance Committee, Council approved changes to the Calaveras Reserve guidelines (CMR: 275:09), including a provision that, to the extent that there are funds available in excess oflong~term stranded cost needs, staff will work with the UAC to identify and recommend projects for Council consideration and approval. Such projects shall be to the benefit of electric ratepayers. DISCUSSION The Public Works Department will manage the consultant contract and Utilities staff will work closely with Public Works staff to complete the feasibility study. The consultant will prepare a feasibility study for a dry anaerobic energy/compost facility, which would recover energy from methane derived from dry anaerobic digestion of food scraps, yard trimmings, and, possibly wastewater biosolids. The chief residual from the processes would be compost. The feasibility study will include an economic, greenhouse gas, and environmental impact analysis. Pursuant to the California Environmental Quality Act (CEQA), an Initial Study (CEQA Checklist) will also be prepared. The costs, impacts, and benefits will be compared to a "no action" alternative and to the alternative of a similar processing facility located outside of Palo Alto, but within 20 miles. Three basic alternatives and four sub-alternatives will be evaluated in the study: 1. A new dry anaerobic digestion facility adjacent to the RWQCP. There are two potential sites for this -the 8 to 9 acre landfill site just southeast of the RWQCP, and the RWQCP site itself. Therefore, there will be sub-alternatives to Alternative 1 as follows: CMR: a. A new dry anaerobic digestion facility for yard waste, food waste and biosolids on the landfill site. :10 Page b. Dry anaerobic digestion for yard, food and wet anaerobic digestion for biosolids on the landfill site. c. Dry anaerobic digestion for yard and food on the landfill site and wet anaerobic digestion for biosolids on the R WQCP si,te. d. Dry anaerobic digestion for yard and food waste and no methane production from the biosolids. 2. A similar regional facility adjacent to the San Jose Wastewater Treatment Plant 3. The current facilities and plans which Palo Alto has arranged for its organics residuals following closure of the Palo Alto Landfill. The analysis of all four sub-options of Alternative 1 will assume that a common methane energy recovery facility will be located on the landfill site. The analysis of all main options and sub- options will include: 1) a financial analysis; 2) a life-cycle analysis of greenhouse gas emissions; and 3) an analysis of environmental and other impacts. Utilities will ensure that the feasibility study will include a proper evaluation of the value of the biomethane and/or electricity produced from an anaerobic digester facility. This evaluation will take into account the value of the: 1) energy produced; 2) green attributes of the energy produced; 3) avoided electric transmission losses and gas transportation and electric transmission costs; and 4) local capacity. COMMISSION REVIEW AND RECOMMENDATIONS The UAC considered the staff recommendation to fund the Electric Fund's share of the Energy/Compost Feasibility Study and Environmental Impact Initial Study from the Calaveras Reserve at its meeting on June 2, 2010. The UAC discussed whether there was any benefit to Utilities from the feasibility study as the project was initiated to address an issue in the Refuse Fund. Utilities was determined to have an interest in the study to ensure that the output from the. digester is valued appropriately and that Utilities considerations are incorporated into the study. Some commissioners agreed that the request for funding from the Calaveras Reserve was consistent with the intentions for projects that would be funded from that reserve since the digester would be a locally-sited generator of renewable energy. One commissioner felt that the Calaveras Reserve was for large projects, not for such small sums for studies, and suggested that the requested funds should come from the Electric general operating budget. The UAC voted to recommend that the Council fund the Electric Fund's 25 percent share of the Energy/Compost Feasibility Study and Environmental Impact Initial Study, up to $75,000, from the Calaveras Reserve by a vote of 4 to 1 with Chair Melton voting no. The excerpted notes from the UAC meeting are provided as Attachment C. RESOURCE IMPACT The feasibility study is expected to cost $250,000. The Electric Fund's expected expense is 25 percent of the total $250,000 cost of the study, or $62,500. To allow for contingencies and potential additional related studies, up to $75,000 is requested for funding from the Electric Fund's Calaveras Reserve. If funding of up to $75,000 for this feasibility study from the CMR: 323:10 Page 3 4 !.':, Calaveras Reserve is approved, sufficient funds would remain in the Calaveras Reserve to cover stranded costs of the electric portfolio. POLICY IMPLICATIONS The conduct of the Energy/Compost Feasibility Study and Environmental Impact Initial Study is aligned with Council policy and creates no new Councilor City policy. ENVIRONMENTAL REVIEW As part of this project, the City is preparing an Environmental Impact Report Initial Study. ATTACHMENTS A. CMR: 251: 10 -Status Update on Procurement for Dry Anaerobic Digestion Feasibility Study and Environmental Review B. Council Direction from the AprilS, 2010 meeting C. Excerpted Draft Minutes from the June 2, 2010 UAC meeting PREPARED BY: Utilities Assistant Director, Resource Management . IDLBOBEL Environmental Compliance Manager, RWQCP DEPARTMENT APPROVAL: GLENN ROBERTS CITY MANAGER APPROVAL: Di O'OfPUblitD'm e:;OAMES KEENE j .;...0---City Manager CMR: 323:10 Page 4 of4 ATTACHMENT A TO: HONORABLE CITY COUNCIL (!)" FROM: CITY MANAGER DEPARTMENT: PUBUCWORKS DATE: MAY 24, 2010 CMR:251:10 REPORT TYPE: INFORMATION SUBJECT: Status Update on Procurement for Dry Anaerobic Digestion Feasibility Study and Environmental Review This is an infonnational report and no Council action is required. The purpose of this report is to notify Council on the progress being made iowards a detailed feasibility study and environmental asseSsment for a dry anaerobic digestion facility in Palo Alto. Staff estimates that a final Environmental Impact Report would be available for certification by Council no earlier than April 2012. Staff expects to have a draft interim fmancial analysis report in January 2011. BACKGROUND On AprilS, 2010, Council directed staff to initiate a feasibility study for dry anaerobic digestion in Palo Alto. The final approved motion consisted of the following points: 1. Direct staff"to initiate the process to hire a consultant to conduct a feasibility study and prepare an appropriate~level environmental impact report for a dry anaerobic digestion facility on 8 to 9 acres of Byxbee Park adjacent to the Regional Water Quality Control Plant; 2. Continue the moratorium on commercial waste acceptance atthe Palo Alto Landfill; 3. Provide an interim report to Council regarding the economics of the feasibility study options; 4." Examine the feasibility of energy conversion technologies (including AD technologies) during the upcoming Regional Water Quality Control Plant (RWQCP) Master Planning Process; and . 5. Investigate and pursue localpartnering opportunities with SMaRT® partners and/or local organic waste processing· companies who are developing private AD or energy conversion facilitieS' within a 20-mile radius of Palo Alto. A history of events leading up to the Council action on April 5, 201 0 is detailed in CMR: 165: 1 O. DISCUSSION , Staff has initiated the process to procure consultant services for· a detailed feasibility study of a dry anaerobic energy facility in Palo Alto with an environmental assessment of impacts. The study will examine a facility that would recover energy from methane derived from dry anaerobic digestion of feedstocks consisting of food scraps, yard trimmings, and, possibly CMR:251:10 Page 1 of4 wastewater biosolids. Besides energy, the primary end product from the processes would be a marketable soil amendment material similar to finished compost. An Initial Study Checklist pursuant to the California Environmental Quality Act (CEQA) would be prepared as early as possible during the study. Further CEQA work may be performed as appropriate following the Initial Study Checklist. The location of the proposed Palo Alto facility . would be immediately southeast of the Palo Alto Regional Water Quality Control Plant on an 8 to 9 acre site (with 6 to 7 acres overlying the current Palo Alto Landfill). Several project alternatives relating to the different possible feedstocks will be examined during the study. The costs, impacts, and benefits will be compared to a "no action" alternative and to the alternative of a similar processing facility located outside of Palo Alto, but within 20 miles in . order to minimize the air quality impacts and carbon footprint of trucking. A proposed conceptual timeline for the overall study is presented in Attachment A. The working draft request for proposals (RFP) is included as Attachment B. Staff expects the RFP to be issued in June 11,2010. Per the timeline, Council will be asked to award a contract for the study by August 2,2010 before Council takes recess in August. Community Input Meeting The first major task that will be performed by the Consultant is the facilitation of at least one community input meeting for the study. This public input session will collect ideas and concerns for the project to help guide the rest of the study. This will be especially helpful for identifYing and costing out suggested environmental mitigation proposals. One such mitigation suggestion . already received from community input is that the facility should include a green roof system that integrates with the closed landfill cap. A follow-up suggestion from community· input indicated that the Byxbee Park recreational trail system needs to be considered in the design. Preliminary Economic Analysis The second major task will be the preparation of a preliminary economic analysis of the proposed facility funding and operating scenarios. The economic analysis will examine the project with and without a rent payment for use of the City-owned land. It will also include the economics of greenhouse gas (OHO) carbon credits and renewable energy credits. The data will be presented in two formats. The first would be in terms of the total overall costs and benefits to the City of Palo Alto and the partners of the Regional Water Quality Control Plant. The second would be in terms of costs and benefits to the individual enterprise funds and general fund (if applicable). Staff expects to present a draft of the preliminary economic report to Council in late January 2011. The final preliminary economic analysis is expected to be presented by March 2011 for further Council action and direction on the overall proj ect. Completion of this task will address item 3 ofthe Council action on April 5, 2010. This report is provided to keep Council informed of the process that staff has initiated to procure consultant services. Based on the conceptual schedule, staff expects to return to Council prior to the August recess to award a contract for the project. Proposals will be evaluated by an inter- departmental staff committee using standard Purchasing Division criteria as modified to fit this project. The working draft proposal review criteria worksheet is enclosed as Attachment C. CMR:251:10 Page 2 of4 RESOURCE IMPACT Depending on the outcome of Council action at the fmal preliminary report stage (March 2011), staff could develop a fonnal capital improvement project (CIP) for the proposed facility's preliminary design and complete EIR. Additional funding for the consultaht beyond the initial contract award will be required to continl.le the project at that point. The preliminary cost estimate would also provide a solid basis to pursue any and all potential grant and stimulus funding sources for the project at that time. Depending upon the specific outcome of the preliminary studies and subsequent Council direction, costs for conceptual design of the project and a complete environmental impact report could range from an additional $200,000 to $500,000. . Funding for this study is expected to come from the FY2010-11 operating budget of the relevant and· respective Enterprise Funds. The revised initial study cost estimate is expected to be for $200,000 to.$250,000 depending upon the proposals to be received. POLICY IMPLICATIONS The ''no action" scenario and the use of a similar anaerobic digestion facility outside of Palo Alto represent the current organic waste management policy established in the Zero Waste Operations Plan. That 2007 policy document recommends using regional facilities to handle organics processing, however it does state in chapter 1.4 that emerging technologies such as anaerobic digestion could assist the City with achieving higher rates of waste diversi.on. The proposed Palo Alto dry anaerobic digestion facility scenario is consistent with established Council policies on reducing greenhouse gas emissions, but is not consistent with the Comprehensive Plan or the 2008 Baylands Master Plan. ENVIRONMENTAL REVIEW As requested by Council, staff is also proceeding with an environmental assessment. However, it is important to note that under Section 15262 of the California Environmental Quality Act (CEQA) Guidelines a feasibility study that does not commit the City to a particular project or course of action does not require a fonnal EIR or negative declaration, but instead requires a more general consideration of environmental factors. Staff expects that a decision to pursue a program-level or project-level environmental impact report will be made by COWlcil in September 2011 when the fmal feasibility study report is presented to Council for acceptance and when the srope of the facility is better defmed. Prior to that decision, much of t4e preliminary technical environmental analysis will have been completed including determination and quantification of impacts relating to greenhouse gases, traffic, noise, air emissions, lighting, aesthetics, habitat and biological resources, cultural resources, geology and soils hazards, hazardous materials, hydrology and water quality, land use and planning, mineral resources, public services, recreation, and utilities. Staff anticipates that an infonnational report to Council will be given in July 2011 to present the draft CEQA Initial Study Checklist along with the technical analysis to support the checklist. ATTACHMENTS Attachment A: Proposed Energy/Compost Study Timeline CMR.:25 1.1 0 . Page 3 of4 \ Attachment B: Draft Request for Proposal (Energy/Compost Feasibility'Study and Environmental Impact Initial Study -Scope of Services) Attachment C: Draft Proposal Review Criteria. Worksheet PREP ARED BY: DEP ARTMENT.HEAD: CITY MANAGER APPROVAL: CMR.:251.10 ~~ MA tTHEW A. RASCHKE Senior Engineer '/L 1 Rj-t----- GLENN S. ROBERTS Director of Public Works AI ENE Page 4 of4 5/24/10 6/11110 8f1JIO 9/8/10 1213/10 1124/11 2111 3/15111 6115111 7/30111 . 8/11 9130111 4/15/12 ENERGY/COMPOST STUDY CONCEPTUAL TIMELINE FEASmlLITY STUDY Study TimeJine Info Cl\fR RFPIssued J _,.,...e. -L_ - ---. I Percent of I J Contract Funds I I Expended I ... J ~-_ ..... _ ..... __ Council Approval of Consultant Contract I I ENVIRONMENTAL ASSESSMENT Community Issues Input Meeting for Feasibility ...... .,. ..... 9/8/10 Community Issues Input Meeting for Environmental Analysis I Assessment I Consultant Draft of Prelim. Financial/GHO Analysis I Info C.MR forwarding Draft Prelim. Financial! GBG Analysis . Community meetings on Draft Prelim. FinanciaV GHO Analysis I I I I I I Final Prefun. FinanciaJ/GHG Analysis ................. 3/15/11 {point for possible farther Council action} 70% I Consultant Draft ofFeasihility Study ·····.·· .. ···········1···· 6/15/11 • Info CMR forwarding Draft Fe;lSibDity Study ....... ~ ...... 7130/11 -Co~unity Meeting~ ·········~···-··········· .. ·············i···· 8111 Final Feasibility Study to Council ........................... 9130111 100% I Final Feasibility Study to Council ......................... 4115/12 . Consultant Technical Environmental Analysis CEQA Initial Study/Checklist, including Greenhouse gasses, traffic, emissions, and other impacts Preliminary Consultant Teehllical Work on Environmental. AsSes5ment Completed Consultant Draft of CEQA Initial Study (CEQA Checklist) InfoCMR forwarding Draft CEQA Checklist Community Meetings Recommendation to· Council on Timeline for Completing CEQAReview and Proeess Final CEQA Review Documentation. to Councn for Certification ~ KEYMILESTONEDATES Additional Funding Needed ~ > n i > ATIACHMENTB City ofPaio Alto Energy/Compost Feasibility Study and Environmental Impact Initial Study Scope of Services GENERAL DESCRIPTION OF WORK The project is to prepare a Feasibility Study for a Dry Anaerobic Energy/Compost Facility in the City of Palo Alto, California. The facility would recover energy from methane derived from dry anaerobic digestion of food scraps, yard trimmings, and, possibly wastewater biosolids. The chief residual from the processes would be compost. The Feasibility Study would include an economic, greenhouse gas, and environmental impact analysis. An Initial Study (CEQA Checklist) pursuant to the California Environmental Quality Act would also be prepared. (Further California Environmental Quality Act work may be performed through a Contract Amendment.) Several sub- options will be studied. The costs, impacts, and benefits will be compared to a "no action" alternative and to the alternative of a similar processing facility located outside of . Palo Alto, but within 20 miles. The location of the Palo Alto facility would be immediately southeast of the P~o Alto Regional Watet Quality Control Plant on an 8-9 acre site (with 6 to 7 acres overlying the existing Palo Alto Landfill). BACKGROUND The City of Palo Alto currently handles organic waste in the following ways: 1. Yard trimmings are composted at the Palo Alto landfill site in uncovered windrows; 2. Residential food scraps are disposed of with the garbage, transferred at the Sunnyvale SMaRT® Station and ultimately landfilled in South San Jose; 3. Commercial food scraps' are increasingly being source separated and composted near Gilroy, CA, with the remainder being landfilled in South San Jose; 4. Wastewater Biosolids are dewatered and incInerated at the Regional Water Quality Control Plant in Palo Alto. Due to the anticipated closure of the Palo Alto landfill and its associated Compost Facility, Palo Alto has been exploring its options. City Council appointed a Blue Ribbon Compost Task Force (Task Force) made up of community members to make recommendations for organics management. The Task Force recommended dry anaerobic digestion at or near the Regional Water Quality Control Plantl . On AprilS, 201 0 council directed2 staff to: 1. Hire a consultant to evaluate dry anaerobic digestion 2. Prepare an enVironmental impact review focused on 8-9 acres of Byxbee Park. 1 See Palo Alto website for Task Force Report and Supporting documents. :I See Palo alto website for full text of Council Directive 3. Continue not accepting commercial refuse at the Palo Alto Landfill. 4. Study energy conversion-technologies including anaerobic djgestion at Palo Alto's Wastewater Treatment Plant as part of its Facility Planning process. 5. Pursue partnering opportunities for organics processing within 20 miles of Palo Alto. The 8-9 acre site described above is currently on dedicated Parkland. Six to seven acres of the proposed site ate part of an active class 3 municipal solid waste landfill that pas not yet received a fmal closure cap. The entire site would have to be undedicated by a vote of the residents before an Energy/Compost Facility could be constructed. A number of other approvals and permits would also be needed. However, this Scope of Services does riot include working on these approval processes. Palo Alto already operates its own gas and electric utilities, which are potential users of gas or energy generated by an anaerobic digestion facility. The electric utility has been directed to procure 33% of its electric supply from renewable sources by 2015. The gas utility is investigating opportunities to supply some 'load using biogas. The City also fuels its vehicle fleet with compressed natural gas, which is another potential use for biogas generated by the facility PROJECT APPROACH Consultant will evaluate and compare three basic alternatives: Alternative 1: A new dry anaerobic digestion facility adjacent to the Palo Alto Wastewater Treatment Plant. Alternative 2: Sending organic waste directly to a s~mi1ar Regional Facility adjacent to the San Jose Wastewater Treatment Plant Alternative 3: The current facilities and plans which Palo Alto has arranged for its organics residuals following closure of the Palo Alto Landfill (Le. transfer to regional facilities via the SMaRT® Station). Palo Alto staff will provide much of the data for the an8lysis of Alternatives 2 and 3. The majority of the Consultants work will be on Alternative 1. There are two sites involved in Alternative 1, the 8-9 acre Landfill site just Southeast of the Wastewater Treatment Plant, and the Wastewater Treatment Plant itself. Therefore, there will be sub- alternatives to Alternative 1 as follows: Sub-options to Alternatiye 1: la) A new dry anaerobic digestion for yard, food and biosolids on the landfill site (biosolids in separate cells). 1 b) Dry anaerobic digestion for ,yard, food and wet anaerobic digestion for biosolids on the landfill site. lc) Dry anaerobic digestion for yard and food on the landfill site and wet anaerobic digestion for biosolids on the Wastewater Plant site. Id) Dry anaerobic digestion for yard and food waste and no methane production from the biosolids. The analysis of all four sUb-options of Alternative 1 will assume that a common methane energy recovery facility will be located on the LandfIll site. It will also include a preliminary site engineering analysis relating to the existing landfIlL The analysis of all main options and sub-options will include: 1. A financial analysis; 2. A life-cycle analysis of greenhouse gas emissions; and 3. An analysis of environmental and other impacts. The analysis of the wet anaerobic digestion process in Alternative 2 and Alternative 3 will be performed through a separate, . parallel study: the Wastewater Long Range Planning process. The' consultant selected that study .will provide the evaluation of wet anaerobic digestion to the Consultant selected for the Energy/Compost Feasibility Study. Following submittal of Preliminary Analysis (Task 4), City will consider whether other alternatives should be considered as welL For example, it may become apparent that an alternative of a somewhat larger or smaller Landfill site would be a more cost effective option, and still be within the intent of the Council Directive to staff from AprilS, 2010. CONSULTANT SERVICES Task 1 - Task2 - Task 3 - Task4 - Task 5 - Development of Detailed Workplan. Consultant will prepare a draft detailed Work Plan and meet with City staff and agree on communication techniques as between the City and Consultant. Community Scoping for Feasibility Study and for Environmental Review. City will arrange for and facilitate a community meeting to solicit input on the Feasibility Study and the Environmental Review. Following this meeting and consulmtion with the City, Consultant will fina1i~ its Work Plan. Preparation of Draft Preliminary Financial and Greenhouse Gas Analysis. Consultant shall collect the data necessary to evaluate the options and sub- options outlined under "Approach" above and prepare a draft preliminary evaluation 1n a data management system format. The key parameters will be dollars, greenhouse gas emissions, and environmental impacts. Preparation of Final Preliminary Financial and Greenhouse Gas Analysis , Following review by City, the Preliminary Analysis will be fmalized. Included in this deliverable should be a working Excel model that can be used by. City staff to update inputs to the analysis and see the effect it has on the project's feasibility. Preparation of Draft Feasibility Study and California Environmental . Quality Act Checklist Consultant shall assist the City in presenting the Preliminary Analysis to the Community and to City CounciL Feedback from that process shall be Task6 - Task? - Task3 - used to prepare a Draft Feasibility Study and California Environmental Quality Act Initial Study (California Environmental Quality Act Checklist). Preparation of Final Feasibility Study, California Environmental Quality Act Ch~cklist, and Workplan for Completion of California Environmental Quality Act Analysis . . Consultant shall assist the City in presenting the Draft Feasibility Study to Council and the Community. Feedback from that process shall be used to finalize the Feasibility Study and California Environmental Quality Act Checklist. . Preparation of Workplan for Complete California Environmel1tal Quality Act Analysis. Following preparation of the California Environmental Quality Act Initial Study (California Environmental Quality Act Checklist), Consultant shall. confer with City. City will advise the Consultant which type of review on the Feasibility Study is to be completed (program EIR, Project-level EIR or focused EIR). Consultant shall then prepare a Workplan for the preparation of that type of Environmental Review. (City may utilize a contract amendment as the vehicle for completing the needed work.) Analysis of Energy Generation from Methane Consultant shall estimate the amount of biogas, percent methane, moisture content and key contaminant levels for the four sub options identified in the "Approach" above. Landfill gas from the Palo Alto landfill shall be considered as an additional source of biogas and recommendations made on whether to include it in the energy recovery analysis. Consultant shall consider methane utilization in internal combustion engines, turbines, fuel cells, compressed natural gas. production, and any other promising technologies. For options requiring heat, cogeneration of heat and electrical energy shall be considered. Consultant shall analyze the capital and operating costs of the four sub options [la) -Id)] in the "Approach" and determine the net present value over the project life. Consultant shall consider the impacts of tax credits, renewable energy credits, rebates, accelerated depreciation and similar features which improve financial feasibility. Grants which may be possible to obtain shall be listed and the likelihood of attaining them analyzed briefly. Recommendations shall be made as to whether the private sector ot government should own andlor operate the energy recovery plant andlor the anaerobic digesters. City Staff will provide the consultant with the coriunodity sale prices (electricity and natural gas) to be used in the analysis. The analysis shall result in overall recommendations with respect to the options [la) -Id)], the type of methane utilization, and the owner/operator . question. The most cost effective alternative shall be identified. Task9 -Project Management Consultant and City shall meet monthly to review progress and agree on priorities for upcoming work. . Consultant shall utilize software graphics which depict 3 dimensions, as well as, plan and side views for showing facilities in its drawings. All drawings will be fully compatible with the City's GIS System. PROJECT TIMELINE September 8, 2010 December 3, ~01O January 24, 2011 February 2011 March 15,2011 June 15,2011 July 30, 2011 August 2011 September 30, 2011 October 30,2011 Community Scoping meeting (City to lead) . Consultant Draft of Preliminary Financial/Greenhouse Gas Analysis' , Revised Draft Preliminary FinanciallGreenhouse Gas Analysis Community meetings on Draft Preliminary Financial/Greenhouse Gas Analysis Final Preliminary Financial/Greenhouse Gas Analysis Consultant Draft of Feasibility Study and' California Environmental Quality Act Initial Study (Califoniia Environmental Quality Act Checklist). Revised Draft Feasibility Study and California Environmental Quality Act Checklist Community Meetings Final Feasibility Study and Draft Workplan for completion of California Environmental Quality Ad documentation. Final Workplan for Completion of California Environmental Quality Act documentation. 1 2 3 4 5 6 7 8 Draft Proposal Review Criteria Worksheet Criteria Propasalhas all reQuired elements. Proposal is well thought out, clear. andprov~es clear path to meet project objectives. Proposers experience, including the experience of staff'to be assigned to the project, with enaaaements of simitar SCOPe and commexity. Cost to thecilv. Proposer has adeQUate financial liability insurance •. Proooser's abilitv to Derform the work within the time sPecified. Proposer's 'Prior record of DeIformance with citY or others. Proposer's compfiance with applicable laws, regulations, policies (including city council pollcies),guidelines and orders governing prior to existing contracts performed by the contractor. . ~ Score = Weight x Rating. Rating shall be frQm a to 5; with 0 = poor rating and 5 = good rating. Rating shall be determined by member of selection committee. Tolalscore Proposal is well thought out, clear. and provides clear path to meet objectives. Consultant A WelaM Rating Score 2 0 3 0 5 0 5 o - 2 0 3 0 3 0 2 0 ' '. "-.' ''c '0;._' 0 Consultant B Weight RatIng Score 2 0 3 0 5 0 5 ();. 2 0 3. 0 3 0 2 a .~.: •........ ." 0' ," , ~. ~ I n !ATTACHMENT B April 5, 2010 City Council Meeting Results Action Minutes Excerpt on Item No. 11: Energy Recovery/Compost Facility The following is an excerpt from the April 5, 2010 Council Meeting Action Minutes concerning an Energy Recovery/Compost Facility in Palo Alto. It shows the motion passed by Council and the approved amendments. This constitutes the April 5, 2:010 COUNCIL DIRECTIVE TO STAFF: MOTION: Council Member Klein moved, seconded by Mayor Burt to: 1) Dir~ct Staff to initiate the process to hire a consultant to evaluate the dry anaerobic digestive system, 2) Prepare an applicable level EIR, focused on the 8-9 acres of Byxbee Park adjacent to the Regional Water Quality Control Plant as a prospective site, 3) Continue not allowing commercial waste acceptance, and 4) Review a policy that the lease revenue to the General Fund (OF), net of any costs to the GF, would first be used to develop Byxbee Park. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER that within the feasibility study an interim report would return to Council on the cost analysis. INCORPORA TED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to examine the feasibility of energy conversion technologies (including AD technologies) during the upcoming Regional Water Quality Control Plant (RWQCP) Master Planning Process. AMENDMENT Council Member Holman moved, seconded by Council Member Schmid to adopt Staff recommendation Number 3; Investigate and pursue local partnering opportunities with SMaRT® partners and/or local organic waste processing companies who are developing private AD or energy conversion facilities within a 20- mile radius of Palo Alto. AMENDMENT PASSED: 5-4 Burt, Klein, Price, Shepherd, no Council Member Klein withdrew Item Number 4 from his Motion; Review a policy that the lease revenue to the GF, net of any costs to the GF, would first be used to develop Byxbee Park. MOTION PASSED: 5-4 Espinosa, Holman, Schmid, Yeh, no ATTACHMENT C EXCERPTED DRAFT MINUTES OF UTILITIES ADVISORY COMMISSION Meeting of June 2,2010 ITEM 3: ACTION ITEM: Use of Up to $75,000 in Calaveras Reserve Funds for an Energy/Compost Feasibility Study and Environmental Impact Initial Study Assistant Director Jane Ratchye explained that the Council directed that a feasibility study for an anaerobic digester be completed and that the cost was expected to be $250,000. City staff had determined that a fair split of the total cost would be for the Refuse Fund to pay half of the cost and the remaining half split equally between the Electric Fund and the Regional Water Quality Control Plan. Utilities staff is proposing that the Calaveras Reserve be the source of funds for the Electric Fund's share of the cost, up to a total of $75,000. Commissioner Foster indicated that the decision seemed easy and that he supported the recommendation. Chair Melton asked why the Electric Fund was aSSigned any part ofthe cost and why the Gas Fund did not get any cost assignment since one outcome could be that gas would be produced from the digester. Fang stated that the project could have benefits to the Electric Fund since local generation would be evaluated and Utilities would want to make sure it was properly valued, but that the Gas Fund was unlikely to be a beneficiary since biomethane, if it was the project's product instead of electricity, would be used directly rather than cleaned up to pipeline quality. Commissioner Waldfogel stated that if Electric Fund was to be tapped, the Calaveras Reserve would be the appropriate source of funds since it fits with the types of projects that were sought for funding from that reserve -local, renewable generation. PUBLIC COMMENT: Herb Borock expressed his opposition to the proposal. He stated that the proposal assumes that the decision on how to divide the costs between funds, rather than ask for policy direction to set that split. In addition, he said that 25% of the $250,000 study would only mean $62,500 is needed, not the $75,000 requested. Finally, we said that the project is entirely a Refuse Fund project and· that no Utilities funds should be used at all, despite the challenging situation of the Refuse Fund. He concluded that the Calaveras Reserve was being tapped since it is available, but that it is not a good policy. Commissioner Eglash asked Council Member Yeh if it was normal for Council to let staff decide funding sources. Yeh said that he didn't know the rationale of the proposed split of funding. Fong added that the Refuse Fund is the largest source of funds at 50% of the total cost. Yeh said thCilt the City Manager would be involved since it must ultimately go to the Council for a decision. He wanted to make sure that the costs are reflective of the benefits for each fund. Commissioner Waldfogel stated that it has been established that there is a bene'rit to the Electric Fund, but not the Gas Fund so that he supported the recommendation. Chair Melton stated that he thought that the Electric Fund's contribution should not come from the Calaveras Reserve since the money involved is too small and that, instead, it should come from the general Electric Fund operating costs. " ACTION: Commissioner Waldfogel made a motion to recommend that Council approve the funding of 25 percent of the funding, up to $75,000, for an Energy/Compost Feasibility Study and Environmental Impact Initial Study from the Calaveras Reserve. Commissioner Berry seconded the motion. Commissioner Melton made a substitute motion to change the funding source from the Calaveras Reserve to the Electric Supply Rate Stabilization Reserve. The substitute motion died for the lack of a second. The original motion passed by a vote of 4 to 1, with Chair Melton voting no. TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: AUGUST 2, 2010 CMR:333:10 REPORT TYPE: CONSENT SUBJECT: Approval of a Contract with Alternative Resources Inc. in the Total Amount not to Exceed $197,758 for Energy/Compost Feasibility Study and Environmental Impact Initial Study RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or his designee to execute the attached contract (Attachment A) with Alternative Resources Inc., in the total amount of $197,758 for the Energy/Compost Feasibility Study and Environmental Impact Initial Study. This amount includes $179,758 for basic services and $18,000 for additional services. BACKGROUND On April 5, 2010 Council directed staff to initiate a feasibility study for dry anaerobic digestion in Palo Alto. The final approved motion consisted of the following points: 1. Direct staff to initiate the process to hire a consultant to conduct a feasibility study and appropriate-level environmental review for a dry anaerobic digestion facility on 8 to 9 acres ofByxbee Park adjacent to the Regional Water Quality Control Plant; 2. Continue the moratorium on commercial waste acceptance at the Palo Alto Landfill; and 3. Provide an interim report to Council regarding the economics of the feasibility study options. A history of events leading up to the Council action on April 5, 2010 is detailed in CMR 165: 1 O. Prior to solicitation, the draft scope of work and time line for the feasibility study and environmental impact analysis was included in informational CMR:251:1O on May 24, 2010. DISCUSSION The result of the project will be a detailed feasibility study for a dry anaerobic energy facility in Palo Alto with the appropriate level of environmental impact review. The study will examine a facility that would recover energy from methane derived from dry anaerobic digestion from feedstocks consisting of food scraps, yard trimmings, and, possibly wastewater biosolids. Besides energy, the primary end product from the processes would be a marketable soil amendment material similar to finished compost. CMR:333.10 Page 10f4 An Initial Study Checklist pursuant to the California Environmental Quality Act (CEQA) will be prepared as early as possible during the study. Further CEQA "work may be performed as appropriate following the Initial Study Checklist. The location of the Palo Alto facility would be immediately southeast of the Palo Alto Regional Water Quality Control Plant on an 8 to 9 acre site per Council direction. Several project alternatives relating to the different possible feedstocks will be examined during the study. The costs, impacts, and benefits will be compared to a "no action" alternative and to the alternative of a similar processing facility located outside of Palo Alto, but within 20 miles. The proposed contract timeline for the overall study is included as Exhibit "B" in Attachment A. The first major task that will be performed by the Consultant is the facilitation of at least one community scoping meeting for the 'study. This public scoping session will collect ideas and concerns for the project to help guide the rest of the study. This will be especially helpful for costing out suggested environmental mitigation proposals. One such proposal is that the facility includes a green roof system that integrates with the closed landfill cap. A follow-up suggestion indicated that the Byxbee Park recreational trail system needs to· be cOl'lSidered in the design. Staff will present the results of the initial community meeting to the Parks and Recreation Commission tentatively scheduled for September 28,2010. The second major task will be the preparation of a preliminary economic analysis of the proposed facility funding and operating scenarios. The economic analysis will examine the project with and without a rent payment for use of the City-owned land. It will also include the economics of greenhouse gas (GHG) carbon credits and renewable energy credits. Lastly, it will present the ecoriomics in two main ways. The first would be in terms of the total overall costs and benefits to the City of Palo Alto and the partners of the Regional Water Quality Control Plant. The second way would be in terms of costs and benefits'to the individual enterprise funds and general fund (if applicable). Staff expects to present a draft of the preliminary economic report to Council in early 2011. The Tmal preliminary economic analysis would be presented by spring of 20 11 for further Council action and direction on the overall project. During the budget process in spring 2011, staff would initiate a formal capital improvement project (CIP) for the proposed facility depending on the outcome of future Council actions. Staff expects that an additional budget for the consultant beyond the initial contract award will be required to continue the project at that point. The contract with Alternative Resources Inc. is for study purposes only and does not constitute a design contract. This feasibility study together with the preliminary environmental impact assessment can then be used by Council to make further decisions regarding a future project. A full appropriate-level environmental impact report would then be performed through a contract amendment for additional services depending on future Council action. CMR:333.10 Page 2 of4 ummaryo o ICI Ion ocess S fS r ·tat" Pr Proposal DescriptionlNumber Energy/Compost Feasibility Study and Environmental Impact Initial Study (RFP #136602) Proposed Length of Project 15 months Number of Proposals Mailed 34 Total Days to Respond to Proposal 21 Pre-Proposal Meeting? Yes Number of Companies at Pre- Proposal Meeting on June 9, 2010 18 Number of Proposals Received: 7 1. Institute for Environmental Management Palo Alto, CA 2. Alternative Resources Inc. Concord,MA 3. WorleyParsons Group, Inc. Martinez, CA 4. DRS Corporation Americas San Francisco, CA 5. HDR Engineering, Inc. San Francisco, CA 6. Golder Associates, Inc. Sunnyvale, CA 7. Carollo Engineers, Inc. Walnut Creek, CA Range of Proposal Amounts $179,785 to $348,000 Submitted An evaluation committee consisting of 3 staff members from Public Works evaluated the written proposals. Three firms were selected for interviews. An expanded evaluation committee consisting of 5 staff members from Public Works and Utilities then unanimously selected Alternative Resources Inc. as the top proposer after interviewing them and the 2 other finalists on July 1,2010. Alternative Resource Inc. is a small research firm with strong experience studying waste conversiop-technologies, including dry anaerobic digestion. Alternative Research Inc. was selected because they had the most direct experience analyzing similar potential facilities in the United States for government clients. The firm (and its sub-consultants) showed the most detailed understanding of the work which is needed in Palo Alto's situation. Their approach for data collection for dry anaerobic digestion was extremely well-organized, and they recognized the need to be fully transparent with respect to all data and analysis. Other firm's proposals were good, but not quite as strong. RESOURCE IMPACT Funding for this study is comprised of $75,000 from Refuse Fund operating budget for landfill contract services in fiscal year 2010-11; $47,758 from the Wastewater Treatment Fund; and $75,000 from the Electric Fund Calaveras Reserve. (Approval from Council to use $75,000 from the Calaveras Reserve is required and is the subject of a separate, companion City Manager's Report (CMR:323:10) also on the August 2, 2010 Council Agenda. This expendIture has been reviewed by the Utilities Advisory Commission and is recommended for approval. CMR:333.10 Page 3 of4 ATTACHMENT A CITY OF PALO ALTO CONTRACT NO.: CI1136602 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND ALTERNATIVE RESOURCES, INC. FOR PROFESSIONAL SERVICES ENERGY/COMPOST FEASIBILITY STUDY AND ENVIRONMENTAL IMPACT INITIAL STUDY This AGREEMENT is entered into on this day of August, 2010, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and ALTERNATIVE RESOURCES, lNC., a corporation in the State of Massachusetts, with offices located at 1732 Main Street, Concord, MA 01742-3837 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to conduct a Feasibility Study for a Dry Anaerobic Digestion facility for organic residuals ("Project") and desires to engage a consultant to prepare the Feasibility Study in connection with the Project ("Services"). B. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions,this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through January 31,2012 unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULT ANT shall complete the Services within the term .ofthis Agreement and in accordance with the schedule set forth in Exhibit "B", attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's Professional Services Rev. January 11, 2010 CITY OF PALO ALTO CONTRACT NO.: Cl1136602 agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed one hundred seventy-nine thousand seven hundred fifty-eight dollars ($179,758). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed one hundred ninety-seven thousand seven hundred fifty~eight dollars ($197,758). The applicable rates and schedule of payment are set out in Exhibit "C-l", entitled "HOURLY RATE SCHEDULE," which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A". SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C-l "). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City's project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULT ANT under this agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all 2 Professional Services Rev. January 11, 2010 \\CC-TERRA\jarreoI\PURCHDOC\SAP Bids and Proposals\RFP\RFP136602 Fnergy-Compost Feasibility Study\Contract CII136602 ALTERNATIVE RESOURCES. doc CITY OF PALO ALTO CONTRACT NO.: C11136602 charges and fees, and give all notices required by law in the perfonnance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULTANT. If CONSUL T ANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive tennination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds ten percent (10%) of the CITY's stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in perfonning the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the perfonnance of any of CONSULT ANT's obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that subconsultants may be used to complete the Services. The sub consultants authorized by CITY to perfonn work on this Project are: 1. Douglas Environmental 2. Ascent Environmental 3. Facility Builders & Erectors CONSULTANT shall be responsible for directing the work of any sub consultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULT ANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULT ANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign James Binder as the Principal to have supervisory responsibility for the perfonnance, progress, and execution of the Services and as the project manager to represent CONSULTANT during the day-to-daywork on the 3 Professional Services Rev. January 11, 2010 \\CC-TERRA \jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP136602 Energy-Compost Feasibility Study\Contract Cll136602 ALTERNATIVE RESOURCES. doc CITY OF PALO ALTO CONTRACT NO.: CI1136602 Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the app~intment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's project manager. CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City's project manager is Phil Bobel, Public Works Department, Environmental Compliance Division, 2501 Embarcadero Way, Palo Alto, CA 94303, Telephone: 650-329-2285. The project manager will be CONSULTANT's point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULT ANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULT ANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the sc?pe of work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT's records pertaining to matters covered by this Agreement. CONSULT ANT 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. D[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architect~; registered professional engineers and licensed professional land surveyors.) 16.1. To the fullest extent permitted by law , CONSULT ANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. IZI [Option B applies to any consultant who does not qualify as a design professional as def"med in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law , CONSULT ANT shall 4 Professional Services Rev. January 11,2010 \\CC-TERRA\jarreol\PURCHDOc\sAP Bids and Proposals\RFP\RFP136602 Energy-Compost Feasibility Study\Contract CIl136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: Cl1136602 protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") reSUlting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULT ANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subj ect to the approval of CITY' s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification, CONSULT ANT shall be responsible for ensuring that current certificates evidencing the insurance are proVided to CITY's Purchasing Manager during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be 5 Professional Services Rev. January 11,2010 \\CC-TERRA \jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP136602 Energy-Cornpost Feasibility Study\Con1ract Cl1136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: C11136602 construed to limit CONSULT ANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwi~standing the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The city manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19 .2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereofto CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or t6minated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise ofhislher discretion 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager 6 Professional Services Rev. January 11,2010 \\CC-TERRA\jarreol\PURCHDOC\sAP Bids and Proposals\RFP\RFPI36602 Fnergy-Compost Feasibility Study\Contract Cl I 136602 ALTERNATIVE RESOYRCES.doc CITY OF PALO ALTO CONTRACT NO.: Cl1136602 To CONSULTANT: Attention of the project,director at the address of CONSULTANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ sub consultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a "Consultant" as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate fmancial 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. CONSULT ANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the City's Environmentally Preferred Purchasing policies which are available at the city's Purchasing Department which are incorporated by reference and may be amended from time to time. CONSULT ANT shall comply with waste reduction, reuse, recycling and disposal requirements of the City's Zero Waste Program. Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or compo sting waste. In particular, Consultant shall comply with the following zero waste requireII\ents: • All printed materials provided by Consultant to City generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of30% or greater post-consumer content paper, unless otherwise approved by the City's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of30% or greater post-consumer material and printed with vegetable based inks. • Goods purchased by Consultant on behalf of the City shall be purchased in 7 Professional Services Rev, January 11,2010 \\CC-TERRA \jarreo\\PURCHDOC\SAP Bids and Proposa\s\RFP\RFP 136602 Energy-Compost Feasibility Study\Contract C 11136602 ALTERNA TlVE RESOURCES,doc CITY OF PALO ALTO CONTRACT NO.: C11136602 accordance' with the City's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Office. • Reusable/returnable pallets shall be taken back by the Consultant, at no additional cost to the City, for reuse or recycling. Consultant shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. NON-APPROPRIATION 24.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section 24.8 shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. 24.2. 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. SECTION 25. MISCELLANEOUS PROYISIONS. 25.1. This Agreement will be governed by the laws of the State of California. 25.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 25.3. 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 a~tion. 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. 25.4. 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. 25.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 25.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 8 Professional Services Rev. January II, 2010 \\CC-TERRA\jarreol\PURCHDOc\sAP Bids and Proposals\RFP\RFP136602 Energy-Compost Feasibility Study\Contract CII136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: Cl1136602 25.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 24.10 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5( d) about a California resident (''Personal Information"), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City's express written consent. 24.11 All unchecked boxes do not apply to this agreement. 9 Professional Services Rev. January 11, 2010 \\CC-TERRA\jarreo)\PURCHDOc\sAP Bids and Proposa)s\RFP\RFPI36602 Fnergy-Compost Feasibility Study\Contract C11136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: Cll13()602 CITY OF PALO ALTO CONSllLTANT: City Manager (Required for contracts over $85,0(0) Purchusingi'v1anager (Required for contracts over $25,000) Contracts Adrninistrator (Required for contr;lctsundet$2:5,OOO) Af>PROVED AS 'rOFORM: Senior AssistanfCity Attorney l\,(taclunents: Al.:natNATlVE RESOlJ EXI'HBIT "A": EXIHBIT ('B": EXt-HBrr "C": SCOPE OF WORK SCHEDULE.OF PERFORMANCE COMPENSATION EXHIB1T "e-I": EXHIBIT "D": SCHEDULE OF RATES INSURANCE REQLHREMEN'fS Hl I'rnlessioHid S~"!vke:> Rev. Jllm:ury I!, 201 I) \\CC·ITRRA\pfH.ol\PURCHPOC\SAl' Bid~ and PtQ!~)1ii\h\jUI'\RFP!J6Ii()2Iinrrgy.C{)miWS! Feaslbilily $tHJy\C<)nhh('l CI! 1366n2 ALTERN,'\ liVE RESOURCES.do'-. CITY OF PALO ALTO CONTRACT NO.: Cl1136602 EXHIBIT" A" SCOPE OF SERVICES GENERAL DESCRIPTION OF WORK The project is to prepare a Feasibility Study for a Dry Anaerobic Energy/Compost Facility in the City of Palo Alto, California. The facility would recover energy from methane derived from dry anaerobic digestion of food scraps, yard trimmings, and, possibly wastewater biosolids. The chief residual from the processes would be compost. The Feasibility Study would include an economic, greenhouse gas, and environmental impact analysis. An fuitial Study (CEQA Checklist) pursuant to the California Environmental Quality Act will also be prepared. (Further California Environmental Quality Act work may be performed through a Contract Amendment.) Several suboptions will be studied. The costs, impacts, and benefits will be compared to a "no action" alternative and to the alternative of a similar processing facility located outside of Palo Alto, but within 20 miles. The.location of the Palo Alto facility would be immediately southeast of the Palo Alto Regional Water Quality Control Plant on an 8-9 acre site. BACKGROUND The City of Palo Alto currently handles organic residuals in the following ways: 1. Yard trimmings are composted at the Palo Alto landfill site in uncovered windrows; 2. Residential food scraps are disposed of with the garbage and landfilled in South San Jose; 3. Commercial food scraps are increasingly being source separated and composted near Gilroy, CA, with the remainder being landfilled in South San Jose; and 4. Wastewater Biosolids are dewatered and incinerated at the Regional Water Quality Control Plant in Palo Alto. The 8-9 acre site described above is currently on dedicated Parkland. The site would have to be undedicated by a vote of the residents before an Energy/Compost Facility could be constructed. A number of other approvals and permits would also be needed. However, this Scope of Services does nnt include working on these approval processes. The City already operates its own gas and electric utilities, which are potential users of gas or energy generated by an anaerobic digestion facility. The electric enterprise fund has been directed to procure 33% of its electric supply from renewable sources by 2015. The gas enterprise fund is investigating opportunities to supply some load using biogas. The City also fuels a portion of its vehicle fleet with compressed natural gas, which is another potential use for biogas generated by the facility PROJECT APPROACH The Consultant will evaluate and compare three basic alternatives: Alternative 1: A new dry anaerobic digestion facility adjacent to the Palo Alto Wastewater Treatment Plant. Alternative 2: A similar Regional Facility adjacent to the San Jose Wastewater Treatment Plant Alternative 3: The current facilities and plans which Palo Alto has arranged for its organics residuals following closure of the Palo Alto Landfill. The City will provide much of the data for the analysis of Alternatives 2 and 3. The majority of the Consultants work will be on Alternative 1. There are two sites involved in Alternative I, the 8-9 acre Landfill site just Southeast of the Wastewater Treatment Plant, and the Wastewater 1 Professional Services Rev. January II, 2010 \\CC-TERRA \jarreoJ\PURCHDOc\sAP Bids and ProposaJs\RFP\RFPJ36602 Energy-Compost Feasibility Study\Contract CI 1 136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: C11136602 Treatment Plant itself. Therefore, there will be sub alternatives to Alternative 1 as follows: Sub-options to Alternative 1: 1a.) A new dry anaerobic digestion for yard, food and biosolids on the landfill site (biosolids in separate cells). lb.) Dry anaerobic digestion for yard, food and wet anaerobic digestion for biosolids on the landfill site. . 1 c.) Dry anaerobic digestion for yard and food on the landfill site and wet anaerobic digestion for biosolids on the Wastewater Plant site. 1 d.) Dry anaerobic digestion for yard and food waste and no methane production from the biosolids. The analYsis of all four sub-options of Alternative 1 will assume that a common methane energy recovery facility will be located on the Landfill site. The analysis of all main options and sub~ options will include: 1. A financial analysis; 2. A life-cycle analysis of greenhouse gas emissions; and 3. An analysis of environmental and other impacts. The analysis of the wet anaerobic digestion process in Alternative 2 and Alternative 3 will be performed through a separate, parallel study: the Wastewater Long Range Planning process. The firm selected for that study will provide the evaluation of wet anaerobic digestion to the Consultant. Following submittal of Preliminary Analysis (Task 4), City will consider whether other alternatives should be considered as well. For example, it may become apparent that an alternative of a somewhat larger or smaller site would better accommodate a cost effective option, and be within the intent of the Council AprilS, 2010 Directive to staff. CONSULTANT SERVICES TASK 1: Development of Detailed Workplan The Consultant will develop a draft detailed Workplan and attend a kick-offmeeting in Palo Alto with City representatives. The draft Workplan will be available for review prior to the meeting. Other goals of the kick-off meeting will be to review the draft Workplan and schedule, to establish the City's goals, objectives and expectations for the Feasibility Study and Environmental Impact Initial Study, and to establish lines of communication. TASK 2: Community Scoping for Feasibility Study and for Environmental Review The Consultant will attend a community meeting arranged by the City to solicit input on the Feasibility Study and Environmental Impact Initial Study. In addition to gathering information from the public on the Feasibility Study, a primary purpose of the community scoping meeting will be to identify key community concerns regarding the project's potential environmental effects. The CEQA environmental review process will be described, as necessary, and the opportunities for the public to participate in the environmental review process will be identified. Following the meeting, City comments will be incorporated into and a final Workplan will be issued .. 2 Professional Services Rev. January 11,2010 \\CC-TERRA\jarreo\\PURCHDOc\sAP Bids and Proposa\s\RFP\RFP136602 Fnergy-Compost Feasibility Study\Contract CII136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: Cll136602 TASK 3: Preparation of Draft Preliminary Financial and Greenhouse Gas Analysis The Consultant will develop a financial model to evaluate each of the four (4) sub-options of Alternative 1. Using budgetary cost estimates supplemented with additional information such as estimated financing costs, the Consultant will calculate annual costs per ton and the total present value cost over the life cycle for each sub-option. The economic model will be constructed to enable the analysis of alternative project development scenarios (for example, private ownership and operation compared to publically-financed designlbuild/operate implementation), as well as the impact of potential grant and funding sources. In addition, the economic model will provide for consideration of the potential cost-savings associated with the prevailing tax exempt market should the City own the energy/compost facility. The preliminary financial model will be submitted to the City for review. Key environmental parameters will be considered in preparing the draft preliminary evaluation. The key environmental parameters will be identified through consultation with the City, through the community scoping meeting input, and based on the professional experience of the project team. The key environmental parameters will be presented in a data management system format. The greenhouse gas (GHG) analysis will discuss the current state of the science (e.g., Intergovernmental Panel on Climate Change's [IPCC] Fourth Assessment Report) along with applicable r~gu1atory framework and relevant guidance (e.g., Assembly Bill [AB] 32, recently adopted CEQA Guideline amendments and Bay Area Air Quality Management District's [BAAQMD] Air. Quality Guidance and GHG Thresholds of Significance). Specifically, as required by Senate Bill 97, the CEQA Guidelines were revised on December 30,2009, to address GHG emissions under CEQA; this analysis will comply with theses newly adopted guidelines along with those adopted by BAAQMD on June 2, 2010. The following analysis willbe conducted for all alternatives and sub-options. For project-generated construction-related emissions, the Urban Emissions Model (URBEMIS) will be used to estimate increases in GHGs (e.g., heavy-duty construction equipment exhaust). This modeling will be based on BAA..QMD-recommended input parameters, project-specific construction data (e.g., size of disturbed ground area, construction phasing schedule), and URBEMIS default settings. URBEMIS, the BAAQMD GHG Model (BGM), and methods from the California Air Resources Board (ARB) will be used to estimate direct project-generated operational-related emissions of GHGs for mobile, stationary, and area source types (e.g., vehicle trips associated with facility employees and material collection and delivery). This modeling will be based on BAAQMD- recommended input parameters, project-specific operational data (e.g., type and size of the proposed facility, operational schedule), default settings, and project specific traffic data (e.g., overall trip generation and vehicle miles traveled [VMT]). Other applicable quantification methods, emissions factors, and assumptions protocols from, but not limited to, the Western Climate Initiative, IPCC, Califomia Climate ActIon Registry's General Reporting Protocol, and ARB will be used to estimate long-term operational-related indirect source emissions. These types of facilities are not a covered sector under ARB regulation for the mandatory reporting of GHG emissions; however, aspects of the digester offset quantification protocol may apply. 3 Professional Services Rev. January 11, 2010 \\CC-TERRA \jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP136602 Fnergy-Compost Feasibility Study\Con1ract CII136602 ALTERNA TlVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: ,Cl1136602, Additionally, though mandatory reporting would not be required or utilization of the digester offset protocol, quantification methods selected for this project will rely on ARB requirements and default emission factors, where applicable to this exact facility type, as stated in the regulation for usability in the future and substantiation of approach for legal defensibility. This analysis will also address the GHG emissions (e.g., lifecycle) from the alternate fates (e.g., composting, land filling, and incinerating) of the wastes by virtue of the collection of these wastes for use with regards to the proposed project. Increases in GHGs will be compared to applicable thresholds and mitigation measures prepared as needed that clearly identify timing, responsibility, and performance standards. A two-tiered approach will be used to assess the project's potential generation ofGHGs and its incremental contribution to the cumulative effect resulting from emissions of GHGs as follows: (1) the potential for project-generated GHG emissions to have a significant impact on the environment and (2) the potential for the project to conflict with applicable plans, policies, or regulations adopted for the purpose of reducing GHG emissions. The amount ofGHGs determined in this analysis (and associated impacts) will be presented in a data management system. TASK 4: Preparation of Final Preliminary Financial and Greenhouse Gas Analysis Based on the City's comments from review of the preliminary financial and greenhouse analysis, a final preliminary analysis will be submitted to the City. This will include a working model in Excel format that will allow the City to test a change in clearly identified variables to assess the impact on life-cycle cost and greenhouse gas emissions. TASK 5: Preparation of Draft Feasibility Study and California Environmental Quality Act Checklist The Consultant will assist the City in presenting the preliminary fmancial analysis to the Community and City Council. In consultation with the City, comments and suggestions received from these presentations will be incorporated into a draft feasibility report which will be prepared to succinctly compile the results of the work performed. The report will include an overview, introduction, waste analysis, conversion technology facility description, and economic analysis. The introduction will include a description of the project planning and history, system elements, and participants. The waste analysis section of the report will include an overview of the existing solid waste management system in the City as well as summarizing available information on waste generation, composition of yard trimmings, food scraps, and biosolids, and waste flow control provisions. Site regulatory and permitting considerations will be included with descriptions of the technologies responding to the request-for-information described in Task 8. The economic analysis section of the report will include a discussion of scope and methods, capital and operation and maintenance cost estimates, financing considerations, and life-cycle cost analysis with sensitivities. Following presentation of the Preliminary Analysis to the community and City Council, the Consultant will prepare a Draft CEQA Initial Study (CEQA Checklist). The Consultant will coordinate with City of Palo Alto staff and the project team members to identify the elements to be included in the Initial Study project description. The project description will focus on the changes anticipated with implementation of the Feasibility Study. Depending upon the alternative approach selected by the City, the key considerations will likely include the odor and 4 Professional Services Rev. January 11, 2010 \\CC-TERRA\jarreol\PURCHDOC\sAP Bids and Proposals\RFP\RFP136602 Fnergy-Compost Feasibility Study\Con1ract CIl136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: Cll136602 traffic generating potential of the proposed Dry Anaerobic Energy/Compost Facility and its compatibility with Byxbee Park users, biological resources, and the nearby municipal airport. The Environmental Checklist Form will be completed with explanations for each response for the proposed proj ect. The level of analysis and degree of impact will vary depending on the environmental topic. Mitigation measures will be developed, when necessary, to minimize environmental impacts anticipated from the proposed project. An administrative draft Initial Study will be prepared for review by City staff and the project team members. The Initial Study will be revised based on the comments received on the administrative draft document. The completed document will be presented to the City for public distribution. TASK 6: Preparation of Final Feasibility Study, California Environmental Quality Act Checklist, and Workplan for Completion of California Environmental Quality Act Analysis The Consultant will assist the City in presenting the draft Feasibility Study to the Community and to City Council. Comments and suggestions received from these presentations will be incorporated, in consultation with the City, into a fmal Feasibility Study. Feedback gathered during the City Council meeting will be used to finalize the Initial Study including any information presented regarding potential environmental effects or suggested mitigation strategies. The administrative draft Initial Study will be revised based on the comments received during the City Council meeting. The completed document will be submitted to the City TASK 7: Preparation ofWorkplan for Complete California Environmental Quality Act Analysis Following completion ofthe Initial Study, the Consultant will confer with the City and the project team regarding the appropriate level of CEQA review for the Feasibility Study (i.e., Program EIR, Project-level EIR, or Focused EIR). Based on the direction provided by the City, the Consultant will prepare a work plan for the preparation of the environmental review document identified by the City as being appropriate for the Feasibility Plan. 5 Professional Services Rev. January 11, 2010 \\CC-TERRA\jarreo]\PURCHDOC\sAP Bids and Proposa]s\RFP\RFP136602 Energy-Compost Feasibility Study\Conlract CII136602 ALTERNA TlVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: Cl1136602 TASK 8: Analysis of Energy Generation from Methane Four (4) sub-options for Alternative 1 will be evaluated for a new dry anaerobic facility at the landfill site. These options are in the following matrix: " Anaerobic Yard Sub-option Digestion System Trimmings Food Scraps Biosolids Dry X X X 1 a) (separate cell) Wet ------ Dry X X -- I b) Wet ----X Dry X X -- I c) X Wet ----(wastewater treatment plant site) X X -- I d) Dry ------ Wet The Consultant will prepare a request-for-information (RFD document for selected technology companies, requesting cost and performance data for each of the sub-options identified above. The Consultant understands that cost and performance data for the wet anaerobic digestion or biosolids will be provided by another firm selected by the City for the facility planning process associated with the wastewater treatment facility (i.e., the Long Range Facilities Plan). The RFI will include an introduction, discussion of general conditions, schedule, submission of information requirements, and qualification information. The RFI approach will enable the Consultant to solicit project-specific information and will enable the responding companies to incorporate their current thinking regarding both technology and business postures in their responses. The Consultant's database will also be used to compare the cost and performance data received from the technology companies through the RFI process for reasonableness. Adjustments will be made to cost and performance data input to the economic model, as deemed necessary. Based on the response to the RFI and the Consultant's experience and judgment, the quantity of biogas generated in each of the four (4) sub-options will be estimated. The quantity oflandfill ~ gas available from the Palo Alto landfill will be considered in a separate sensitivity analysis and a recommendation made as to whether landfill gas should be incorporated into the sub-options. 6 Professional Services Rev. January 11,2010 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP136602 Energy-Compost Feasibility Study\Conlract CII136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: C11136602 The methane-rich gas produced from the dry anaerobic digestion process can be used in a variety of electrical generation equipment including: internal combustion engines, gas turbines, gas turbines in a combined cycle configuration, or fuel cells. The methane-rich gas can also be upgraded for production of compressed natural gas or pipeline quality natural gas. A common methane energy recovery system will be adopted by the Consultant for the analysis of the four (4) sub-options. This selection will be made based on the Consultant's experience and the responses to the RFI received from technology companies. The Consultant will also investigate grant and funding opportunities that could result in either a lower overall amount of borrowing or a lower cost of capital. These include, among others, Clean Renewable Energy Bonds (CREBS), Qualified Energy Conservation Bonds (QECBs), Tax Credit Bonds, United States Department of Energy (USDOE) grants, and loan guarantees. Additional funding opportunities may be available through various State-administered programs. In addition, the Consultant will analyze the advantages and disadvantages of public and private models for project delivery, considering ownership, risk sharing for performance and cost, financing options and opportunities for grants and low interest loans available on a State and Federal basis for different methods ofproject delivery. These methods include both public and private models; design-build (DB); design-build-operate (DBO) and design-build-own-operate- transfer (DBOOT). A preliminary site engineering analysis will be conducted for the landfill site including consideration of access, space requirements, rough grading requirements, foundation considerations, and interconnection of utilities. The City will provide the Consultant with a quantity estimate of cubic yards of in-place refuse that will need to be relocated from the site. The City will also provide the Consultant copies of previous geotechnical investigations performed on and adjacent to the landfill site. A conceptual site layout drawing will be prepared indicating the arrangement and location of the facility on the site. The drawing will be compatible with the City's GIS system. If facility information is available in sufficient detail to depict plan and side views, additional drawings will be prepared depicting a three dimensional yiew of the facility. TASK 9: Project Management The Consultant will meet with the City monthly to review progress and establish priorities for work to be conducted the following month. It is anticipated that these meetings will be conducted both in person, as needed, and by teleconference. 7 Professional Services Rev. January 11,2010 \\CC-TERRA\jarreoI\PURCHDOC\sAP Bids and Proposa\s\RFP\RFP136602 Energy-Compost Feasibility Study\Con1ract CI 1 136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: Cll136602 EXHIBIT "B" SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULT ANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. Milestones 1. Community Scoping meeting (City to lead) 2. Consultant Draft of Preliminary FinanciaVGreenhouse Gas Analysis 3. Revised Draft Preliminary FinanciaVGreenhouse Gas Analysis 4. Community meetings on Draft Preliminary FinanciaVGreenhouse Gas Analysis 5. Fimil Preliminary FinanciaVGreenhouse Gas Analysis 6. Consultant Draft of Feasibility Study and California Environmental Quality Act Initial Study (California Environmental Quality Act Checklist). 7. Revised Draft Feasibility Study and California Environmental Quality Act Checklist 8. Community Meetings 9. Final Feasibility Study and Draft Workplan for Completion of California Environmental Quality Act documentation. 10. Final Workplan for Completion of California Environmental Quality Act documentation I Completion fromNTP September 15, 2010 December 3, 2010 January 24,2011 February 2011 March 15,2011 June 15,2011 July 30,2011 August 2011 September 30, 2011 October 30, 2011 Professional Services Rev. January II, 2010 \\CC-TERRA \jarreol\PURCHDOC\sAP Bids and Proposals\RFP\RFP136602 Fnergy-Compost Feasibility Study\Contract CI I 136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: Cl1136602 EXHIBIT "C" COMPENSATION The CITY agrees to compensate the CONSULT ANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-l up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit "A" ("Basic Services") and reimbursable expenses shall not exceed $179,758.00. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $197,758.00. 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. CONSULT ANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY's manager may approve in writing the transfer of bud get amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $179,758.00 and the total compensation for Additional Services does not exceed $18,000.00. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 $3,460 (Development of Detailed Workplan) Task 2 $5,640 (Community Scoping for Feasibility Study and for Environmental Review) Task 3 $34,367 (preparation of Draft Preliminary Financial and Greenhouse Gas Analysis) Task 4 $18,456 (Preparation of Final Preliminary Financial and Greenhouse Gas Analysis) Task 5 $41,242 (preparation of Draft Feasibility Study and California Environmental Quality Act Checklist) Task 6 $16,996 (preparation of Final Feasibility Study, California Environmental Quality Act Checklist, and Workplan for Completion of California Environmental Quality Act Analysis) Task 7 $5,025 (preparation ofWorkplan for Complete California Environmental Quality Act Analysis) 1 Professional Services Rev. January 11,2010 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP136602 Fnergy-Compost Feasibility Study\Contract CIl136602 ALTERNATIVE RESOURCES. doc CITY OF PALO ALTO CONTRACT NO.: C11136602 Task 8 $38,472 (Analysis of Energy Generation from Methane) Task 9 $8,200 (project Management) Sub-total Basic Services $171,858 Reimbursable Expenses $7,900 Total Basic Services and Reimbursable expenses $179,758 Additional Services (Not to Exceed) $18,000 Maximum Total Compensation $197,758 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULT ANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed· at reasonable, actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone cellular phone, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $2,500.00 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULT ANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum corppensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-l. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by 2 Professional Services Rev. January 11,2010 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP136602 Fnergy-Compost Feasibility Study\Contract Cll136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: Cll136602 the CITY's manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: • Meetings, testing or design services not covered in Basic Services \ 3 Professional Services Rev. January 11,2010 \\CC-TERRA\jarreol\PURCHDOc\sAP Bids and Proposals\RFP\RFP136602 Energy-Compost Feasibility Study\Contract C11136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: Cll136602 EXHIBIT "C-l" HOURLY RATE SCHEDULE POSITION ALTERNATNE RESOURCES, INC. Principal/Project Manager Energy Consultant Financial Analyst Conversion Technology Specialist Anaerobic Digestion Specialist Air Quality Specialist Word Processing DOUGLASENVmONMENTAL Douglas Brown Susan Alves Phil Bernard Lois Montes Word Processing/Graphics ASCENT ENYmONMENTAL Honey Walters Austin Kerr Heather Phillips ASCENT ENVmONMENTAL JerryGunn Scott Supernaugh 1 HOURLY RATE $205 $175 $170 $144 $132 $125 $45 $160 $115 $95 $80 $75 $150 $115 $115 $150 $150 Professional Services Rev. January 11,2010 \\CC-TERRA \jarreol\PURCHDOasAP Bids and Proposals\RFP\RFP136602 Fnergy-Compost Feasibility Study\Conlract Cll136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: Cl1136602 EXHIBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN ANDMAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITHAM BEST'S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTIIORIZED TO TRANSACT INSURANCE BUSINESS IN TIlE STATE OF CALIFORNIA. . AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS AS SPECIFIED BELOW' , , MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED. 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 PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY 1 Professional Services Rev. January 11, 2010 \\CC-TERRA\jarreo!\PURCHOOc\SAP Bids and Proposals\RFP\RFP136602 Energy-Compost Feasibility Study\Contract C 11136602 ALTERNATIVE RESOURCES.doc CITY OF PALO ALTO CONTRACT NO.: Cl1136602 THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 2 Professional Services Rev. January 11,2010 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and ProposaIs\RFP\RFP136602 Fnergy-Compost Feasibility Study\Contract Cll136602 ALTERNATIVE RESOURCES. doc TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: AUGUST 2, 2010 CMR:319:10 REPORT TYPE: CONSENT SUBJECT: Approval of Contract Amendment No. One with Callander Associates Landscape Architecture, Inc., to Add $14,829 for Greer Park Renovation Construction Administration Services for a Total Contract Amount Not to Exceed $191,015 -CIP #PE-09002 RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or his designee to execute Amendment No. One to Contract No. C09126814 with Callander Associates Landscape Architecture, Inc. (Attachment A), in the amount of $14,829 for construction administration services for the Greer Park Renovation and Pump Station Replacement Project, CIP #PE-09002. The amended contract amount for project design and construction administration services would total $191,015. BACKGROUND On August 4, 2008, Council approved Contract No. C09126814 with Callander Associates Landscape Architecture, Inc., in the amount of $176,186 for landscape and engineering design services for the Greer Park Renovation and Pump Station Replacement Project, CIP #PE-09002 (CMR:333:08). The contract included a relatively small allowance of $12,150 for the consultant to assist staff with administration tasks during project construction. At the time, the project was being managed by a professional landscape architect in the Public Works Engineering Division, who was qualified to review landscape-related contractor submittals and inspect planting and irrigation system improvements in the field. On December 14, 2009, Council approved Contract No. C10134205 with Elite Landscaping, Inc., in the amount of$1,220,075 for construction of the Greer Park Renovation and Pump Station Replacement Project (CMR:423:09). DISCUSSION In February 2010, shortly after the start of construction on the Greer Park Renovation Project, the staff landscape architect managing the project retired from the City and the position was frozen. The project is now being managed by a civil engineer in the Public Works Engineering Division with less project-specific knowledge and less expertise in landscape architecture. As a result, there is an increased need for assistance from the landscape architecture consultant in reviewing contractor submittals, responding to requests for information, inspecting irrigation and reclaimed water pump station improvements, and preparing record documents upon completion of the work. Staff has worked diligently throughout the project to-date to minimize the use of CMR:319:1O Page 10f2 ATTACHMENT A ~ CITY OF PALO ALTO CONTRACT NO. C09126814 AMENDMENT NO. 1 TO CONTRACT NO. C09126814 BETWEEN THE CITY OF PALO ALTO AND CALLANDER ASSOCIATES LANDSCAPE ARCHITECTURE, INC. This Amendment No. 1 to contract No. C09126814 ("Contract") is entered into , 2010, by and between the CITY OF PALO ALTO, a California Charter City ("CITY"), and CALLANDER ASSOCIATES LANDSCAPE ARCHITECTURE, INC., a corporation in the state of California with offices located at 311 Seventh Avenue, San Mateo, CA 94401 ("CONSULTANT"). R E CIT A L S: WHEREAS, the Contract was entered into between the parties for the provision of professional consulting replace the existing pump station and irrigation system at Greer Park, to renovate the children's play area and other areas within the park, and to design and implement improvements to the undeveloped portion of the park ("Project"); and WHEREAS, the parties wish to amend the Contract to increase the scope of services and compensation; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section I, SCOPE OF SERVICES, is hereby amended to add the following: "CONSULTANT shall perform the Services described in Exhibit "A", as revised in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY." SECTION 2. Section 4, NOT TO EXCEED COMPENSATION, is hereby amended to read as follows: "The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A", as revised including both payment for professional services and reimbursable expenses, shall not exceed one hundred seventy-five thousand fifteen dollars ($175,015.00). In the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall ,not exceed one hundred ninety-one thousand fifteen dollars ($191[015.00). The applicable rates and schedule of payment are set out in Exhibit "C", entitled "COMPENSATION[" which is attached to. and made a part of this Agreement. 1 S:ATT/USERS/OFFICE FORMS/City Approved Contracts 3/20/07 (REV) CITY OF PALO ALTO CONTRACT NO. C09126814 -Amendment One Task 1 -PROJECT STARTUP Consul tant shall: EXHIBIT "A" -Revised SCOPE OF SERVICES 1.01 Attend one initial meeting with City staff to review design program, schedule, budget, project goals, and available base information. Prepare meeting summary and written design program. (Staff Meeting #1) TASK 2 -PRELIMINARY INVESTIGATION AND DESIGN Consultant shall: 2.01 Gather and evaluate existing park record drawings (furnished by City) and other available base information for the site. Obtain an electronic copy of City's topographic survey for the annex. 2.02 Conduct a topographic survey of the existing park improvements exclusive of the annex (topographic survey of annex to be provided by City in AutoCAD for incorporation into overall site survey). Survey to be prepared at a scale of 1" = 30'. Combine field survey with survey provided by City into a composite drawing suitable for development of base sheets. 2.03 Inventory existing conditions and above grade features on the annex site and children's play area. Conduct an operational inspection of the existing pump station and irrigation system. Photograph existing conditions for meetings and in-house use. Obtain up to two (2) soil samples in the annex area for horticultural soils testing by Soil and Plant Laboratory of Santa Clara for soils analysis and general amendment and fertilizer recommendations for landscape areas. The lab recommendations will be incorporated into the soil preparation specification. 2.04 Review municipal codes and applicable environmental clearance requirements and prepare a permitting requirements matrix summarizing agencies, jurisdictions, fees, permit type and permit processing requirements. Matrix to include any environmental heath permitting requirements that may be triggered by upgrades to non-potable and potable water services. 2.05 Pump Station: As multiple solutions are available to address the deficiencies of the existing pump station, the preliminary design phase includes development and evaluation of alternatives. All alternatives will show new water service(s) to the new pump station to address the recharge deficiencies of the existing make-up lines. Concepts will be developed delineating alternatives to facilitate selection by City. Alternatives include: Horizontal Centrifugal Pump: Installed adjacent to existing pumps to minimize down time during "switchover". Horizontal centrifugal pump concept plan to be prepared at a scale of W' = 1'-0". 100716 Professional Services Revised 10/18/07 CITY OF PALO ALTO CONTRACT NO. C09126814 -Amendment One Vertical Turbines: Installed over the existing tank. Vertical turbine concept plan to be prepared at a scale of W' = l' -0". Prefabricated or Custom Pumps w/Wet Well: Wet well installed adjacent to existing well, and may be interconnected. System available for testing and evaluation before switchover. Wet well concept plan to be prepared at a scale of W' = 1 ' -0". 2.06 Develop two (2) preliminary play area plans for the children's play area at a scale of 1,14" = l' -0". Prepare two (2) preliminary annex plans for the annex at a scale of 1" = 10'. Develop one (1) preliminary overall park plan at a scale of 1" = 3 0 ' to show other contemplated improvements including renovation of picnic areas, dog run, pathway lighting, new fencing, dugouts, backstops, exercise stations and new plantings. 2.07 Assemble details, catalog cuts, sketches and other information as necessary to convey design intent. Materials assembled may include catalog cuts and photos of proposed play equipment, site furnishings, plant palette, light fixtures, and other improvements. Assemble and mount images on presentation board for use in public presentation. 2.08 Prepare a detailed estimate of probable construction costs for all park elements. Estimate to be formatted to separate costs associated with required (irrigation system, pump station, play areas) from optional (dog run, ballfield dugouts & backstops, exercise stations) improvements. Estimate to include design and construction contingencies and allowance for inflation. 2.09Meet with City staff to present and discuss preliminary park and pump station improvement plans, park furnishings and cost estimate. Evaluate the scope of the work and coordinate with the City to prioritize work items. Recommend alternatives to enhance the project or reduce costs. Prepare meeting summary. (Staff Meeting #2) 2.10 Revise preliminary park improvement plans, presentation board and estimates of probable construction costs based on comments in staff meeting #2. Prepare a Powerpoint presentation and large format graphics for public presentation. 2.11 Community Presentation # 1: Utilizing large format graphics and Powerpoint, present draft preliminary design plans in a single community meeting. Solicit input from attendees and facilitate consensus during the meeting. Record comments and prepare meeting summary. TASK 3 -DESIGN DEVELOPMENT Consultant shall: 3.01 Meet with staff to discuss City and Community input. Identify preferred alternative or preferred elements of each alternative for purposes of establishing final design. Re-confirm 2 100716 Professional Services Revised 10/18/07 CITY OF PALO ALTO CONTRACT NO. C09126814 -Amendment One project parameters including project budget and schedule as necessary to respond to program. Record comments and prepare meeting summary. (Staff Meeting #3) 3.02 Incorporating comments from phase 2.0 community presentation and staff meeting proceed to prepare design development plans with layout of all major elements clearly defined. Specific drawing index to be established at the completion of this task. The index will likely include the following: a. cover sheet with general notes, sheet index, existing conditions legend, site and vicinity maps (1 sheet) b. demolition plan with notes, legend and disposition list (3 sheets, 30 scale) c. annex area grading plan with legend and notes (1 sheet, 30 scale) d. site construction plan with all improvements located and referenced (3 sheets, 30 scale) e. irrigation plan with all irrigation improvements shown (3 sheets, 30 scale) f. irrigation details including controller, valves, quick couplers, and other new irrigation system components (2 to 3 sheets, scale varies) g. pump station drawings including plan and elevation drawings of pump station improvements (1 to 2 sheets, scale varies) h. piping plans showing plan and profile of existing and new pump station service lines, including tie-ins, cross sections and details of pump station enclosure (1 to 2 sheets, scale varies) 1. planting plan showing new plantings throughout annex area (1 sheet, 30 scale) and replacement plantings elsewhere in park (2 sheets, 30 scale) J. pump station and piping details (2 to 3 sheets) k. landscape details including planting, fencing, exercise stations and other site furnishings as selected for incorporation in project (2 to 3 sheets, scale varies) 1. electrical site plan showing parking and pathway lighting as selected for incorporation in project and electrical service to pumping station and controller (3 sheets, 3 0 scale) m. electrical details including single line diagrams, panel schedules, grounding, pull box and electrolier details (3 sheets, scale varies) 3.03Prepare technical specifications addressing all major items of work. Specifications to be prepared in CSI format. Specification sections to be established at the completion of this task. Landscape specifications sections to include: demolition, site concrete, site furnishings, irrigation, planting, landscape maintenance, soil preparation, earthwork, site drainage. Pump Station specifications to include: performance specifications for pumps, motors, VFD's, programmable logic controllers, valves pressure gauges, motor starters, and technical specifications for pipeline installation including pipe material, bedding, trench excavation, disinfection, and recycled water main labeling. Electrical specifications sections to include: general electrical requirements, materials and 3 100716 Professional Services Revised 10/18/07 CITY OF PALO ALTO CONTRACT NO. C09126814 -Amendment One methods, light fixtures, electrical equipment and electrical site work. 3.04 Prepare a detailed estimate of probable construction costs including an itemization of all major items of work, unit prices (based on actual bid results), cost extensions and construction contingencies. 3.05 Prepare an 8-1/2 x 11 bound design development booklet showing all major elements proposed. Booklet to include: Catalog cuts of park site furnishings: including play equipment, fencing, backstops, exercise equipment, and other site furnishings. Pump station information: including catalog cuts of maj or pump station components, and an integrated Supervisory Control and Data Acquisition (SCADA) system. Irrigation system information: including irrigation equipment catalog cuts. Landscape improvements: including photos of proposed plant types, horticultural soils report and tabulation of plants by seasonal color, growth rates and other selection criteria. 3.06Meet with City staff to present and discuss design development submittal including plans, specifications, cost estimate and design development book. Identify minor modifications to design development package to be incorporated prior to Community Presentation #2. Prepare meeting summary. (Staff Meeting #4) 3.07 Community Presentation #2: Prepare a color rendering of the planting plan to serve as a presentation drawing. Add labels as appropriate to further delineate key improvements. Prepare a Powerpoint presentation to include overall plan, enlargements of select areas including park annex, play and picnic areas. Presentation to include images culled from design development booklet to show proposed play equipment, site furnishings and other elements as may be of interest to the community. Powerpoint presentation to be complemented with presentation boards to facilitate dialogue with public at completion of presentation. Note public comments and seek consensus. Prepare meeting summary and forward to City for review and distribution. TASK 4 -CONSTRUCTION DOCUMENTS (95% SUBMITTAL) Consultant shall: 4.01 Meet with staff to discuss City and community input. Discuss suggested plan revisions and reach consensus regarding appropriate incorporation. Review project parameters including budget and schedule as warranted to respond to any program changes. Record comments and prepare meeting summary. (Staff Meeting #5) 4.02 Incorporating comments from community presentation and subsequent staff meeting, revise and prepare 95% complete plans. Furnish supporting data as may be required to facilitate City plan review. Plans to include drawings for turnkey pump station showing transition from 4 100716 Professional Services Revised 10/18/07 CITY OF PALO ALTO CONTRACT NO. C09126814 -Amendment One old to new pump systems. 4.03 Revise and update specifications. Edit as needed to incorporate geotechnical and horticultural recommendations. Specifications to be edited to include measure and pay clauses and bid form. 100% specifications to be furnished to City with 95% submittal. 4.04 Revise the final statement of probable construction costs as warranted to address plan changes and most current contract cost data available. Completed estimate shall be suitable for establishment of the "Maximum Construction Budget" as defined in Article I.B of the Agreement for Services. TASK 5 -CONSTRUCTION DOCUMENTS (100% SUBMITTAL) Consultant shall: 5.01 Incorporating comments from City review, proceed to prepare 100% plans. Furnish City with one (1) full size reproducible set of 100% submittal drawings, stamped and signed by the appropriate licensed professional. 5.02 Update project manual as warranted and in accordance with comments received on prior submittal. Incorporate City prepared sections including Notice Inviting Bids, Proposal Requirements and Instructions to Bidders, Proposal and Bond Forms, and Conditions of the Contract. 5.03 Public Meeting: Attend public meeting or present proj ect to Park and Recreation Commission as warranted. TASK 6 -BIDDING PHASE Consultant shall: 6. 0 1 Provide information and assistance during the bidding phase, including answering questions from bidders, assisting City in soliciting qualified bidders, preparing written drafts of addenda, assisting City in evaluation of bids received, and providing written recommendations for the award of the bid. TASK 7 -CONSTRUCTION PHASE Consultant shall: 7.01 Attend pre-construction meeting with the responsive low bid Contractor and City staff. Prepare meeting summary. (Staff Meeting #6) 7.02 Provide administrative services to City including review and responses to Contractor initiated inquiries as noted below. City shall have the primary responsibility for this phase of services and shall be the primary point of contact with the Contractor. Services to include: 5 100716 Professional Services Revised 10/lB/07 CITY OF PALO ALTO CONTRACT NO. C09126814 -Amendment One a. Review and respond to Contractor submittals and request for substitution. b. Respond to Contractor requests-for-information. 7.03 Provide construction support services to City in monitoring the Contractor's execution of the work for conformance with design intent, contract requirements, schedules, and cost limits. City shall have the primary responsibility for this phase of services and shall be the primary point of contact with the Contractor. Services to include: 100716 a. Attend up to two (2) progress meetings on site to review project development and provide clarification of design intent or recommendations for accommodating field conditions as appropriate. b. Provide interpretation of contract documents as required to facilitate project implementation. c. Review construction schedule, schedule of values, payment requests and change order requests. d. Prepare change orders, review Contractor's quote and advise City. e. Perform substantial and final completion walk-thrus and assemble punchlists of outstanding items of work. f. Attend close-out meeting. g. Perform up to three (3) additional site visits by as requested by the City and up to (3) site visits by the pump design sub consultant to review the pump station installation, testing and start-up. h. Review and transfer record drawings onto (1) set of mylar drawings and (1) CD and deliver to the City. 6 Professional Services Revised 10/18/07 100715 CITY OF PALO ALTO CONTRACT NO. C09126814 -AmendmenfOne EXHIBIT "C" -Revised COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based onthe hourly rate schedule attached as exhibit C-l up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit "A" ("Basic Services") and reimbursable expenses shall not exceed $175,015. 00. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed $191,015.00. 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. CONSULT ANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY's project manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $175,015.00 and the total compensation for Additional Services does not exceed $16,000.00. BUDGET SCHEDULE Task 1 (Project Startup) Task 2 (Preliminary Investigation and Design) Task 3 (Design Development) Task 4 (95% Construction Documents) Task 5 (100% Construction Documents) Task 6 (Bidding Phase -Support) Task 7 (Construction Phase -Support) NOT TO EXCEED AMOUNT $2,000 $48,672 $39,899 $34,832 $13,072 $3,400 $25,479 Professional Services Revised 10/18/07 CITY OF PALO ALTO CONTRACT NO. C09T26814 -Amendment One Sub-total Basic Services $167,354 Reimbursable Expenses $7,661 Total Basic Services and Reimbursable expenses $175,015 Additional Services (Not to Exceed) $16,000 Maximum Total Compensation $191,015 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subj ect to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone cellular phone, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $200.00 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES 100715 The CONSULT ANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's project manager and CONSULTANT prior to commencement ofthe services .. Payment for additional services is subject to all requirements and restrictions in this Agreement Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: 2 Professional Services Revised 10/18/07 100715 CITY OFPALOALTOCONTRACTNO.C09126814 -AmendmefitOne . a. Revisions to plans subsequent to approval. b. Supplemental unforeseen services as may be required by the City or Contractor. c. Record document preparation. d. Economic analysis. e. Additional meetings, presentations or workshops other than those specifically listed in the scope of services. f. Evaluation or inventorying sites other than the immediate project site. g. Change order document preparation where change order is not necessitated by an error or omission on the plans. h. Expert witness or other legal proceeding services. 1. Any other services not specifically indicated in the scope of services. 3 Professional Services Revised 10/18/07 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO ALEX AMERI UPON THE COMPLETION OF HIS TERM AS A UTILITIES ADVISORY COMMISSIONER WHEREAS, Alex Ameri has served as a Commissioner on the Utilities Advisory Commission from July 27, 2009 through June 30, 2010; and WHEREAS, Alex Ameri has provided dedicated service to the residents and businesses of this community through review of Utilities policies and practices employing his extensive knowledge of City government and Utilities matters; and WHEREAS, Alex Ameri’s interest in Utilities matters and active participation on the Commission brought additional depth and insight to Commission deliberations; and WHEREAS, Alex Ameri ably assisted the Utilities in the development of the Utilities 10- year Electric Energy Efficiency Plan and the successful negotiation of two landfill gas-to-energy power purchase agreements for renewable power which will result in a 28% renewable portfolio standard in 2013; and WHEREAS, Alex Ameri’s consideration of concerns raised by the public, and his willingness to listen to different points of view resulted in joint recommendations by Staff and the Commission to the City Council that were adopted by the City Council; and WHEREAS, Alex Ameri diligently incorporated City Council directions and priorities in his guidance on utilities matters; and WHEREAS, the City of Palo Alto desires to recognize the meritorious service of Alex Ameri. NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of Palo Alto hereby commends the outstanding public service of Alex Ameri and records its appreciation as well as the appreciation of the citizens of this community for the service and contribution rendered during his terms on the Utilities Advisory Commission. INTRODUCED AND PASSED: AUGUST 2, 2010 ATTEST: APPROVED: ____________________ ______________________ City Clerk Mayor APPROVED AS TO FORM: ____________________ ______________________ City Attorney City Manager Not Yet Approved SECTION 1. The Municipal Fee Schedule is hereby amended to increase or add the College Terrace residential parking permit fees as follows: Annual Permit-College Terrace --$40.00/permit Lost Annual Permit -College Terrace --$10.00/permit Day Use Permit College Terrace --$5.00/permit . Guest Permit -College Terrace --$25.00/permit Lost Guest Permit -College Terrace --$25.00/permit An amended fee schedule page showing the updated fees is attached as Exhibit A for reference. ,SECTION 2. The Council of the City of Palo Alto hereby finds that this is not a proj~ct under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED and PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney 100715 jb 0130610 2 Mayor APPROVED: City Manager Director of Planning and Community Environment Director of Administrative Services TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: AUGUST 2, 2010 CMR:304:10 REPORT TYPE: CONSENT SUBJECT: Approval of a Contract with Peterson Power Systems in a Total Amount not to Exceed $201,853 for the Overhaul of a Caterpillar Model 3412e Diesel Engine and the Installation of a Required Best Available Control Technology (BACT) Diesel Emissions Retrofit Device RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or his designee to execute a contract with Peterson Power Systems not to exceed $183,503, and $18,350 for additional services for the complete overhaul of a Caterpillar Model 3412E engine and the installation of a diesel particulate filter system (DPF) that will reduce the engine's particulate matter emissions in accordance with more stringent Bay Area Air Quality Management District (BAAQMD) regulations that will become effective on January 1,2013. DISCUSSION The City of Palo Alto's refuse disposal facility is owned and operated by the City of Palo Alto. The facility includes an active municipal solid waste landfill, an active landfill gas collection system, a landfill gas control system, and compo sting operations. A primary piece of equipment used in the composting operations is a 2001 Morbark Model 5600 horizontal wood grinder that is equipped with a Caterpillc;rr Model 3412E diesel engine. The City of Palo Alto took delivery of the grinder on March 15, 2002. The original purchase price was $354,761. The grinder is used to reduce wood material down to 'a compostable debris mixture. The grinder has the capacity and power to process whole trees, stumps, logs, lumber, and green waste. The grinder has been operated under severe service conditions for a total of 8,385 hours. Due to its age and condition, the Caterpillar engille that powers the grinder is in need of overhaul. The overhaul includes the removal, transportation and re-installation of the engine. All internal and external engine components will be machined, repaired or replaced so that the engine is restored to original factory specifications for performance and reliability. In addition, the power take-off unit will be repaired, and the clutches replaced. The Caterpillar 3412E is a very large (860 horsepower) industrial engine, which accounts for the relatively high cost of this overhaul. Repair of ihis equipment is necessary to ensure the continued viability of the compost operation in both short and long term scenarios. Given that the compost function is currently scheduled to CMR:304:1O Page 1 of3 continue until landfill closure, the repairs will be the most cost effective solution as further discussed in the following "Alternatives" section. Should a policy decision be made to continue composting after landfill closure, the cost of these repairs will be even further cost effective. Scope of Work The scope of work consists of three parts. The first part involves t4e engine overhaul and is priced at $91,523. The second part consists of optional repairs in the total amount of $56,202. The nece~sity for those repairs will not be known until the engine is reIlloved and this will not be performed until authorized by the City's Equipment Management. The third part of the scope is the installation of a Best Available Control Technology (BACT) diesel particulate filter (DPF) as required by the Bay Area Air Quality Man~gement District (BAAQMD). The BAAQMD was established in 1955 to regulate sources of stationary air pollution in the nine counties surrounding the San Francisco Bay. BAAQMD regulations require a reduction in the particulate matter (PM) emissions from the Caterpillar Model 3412E diesel engine by January 1,2013. The installation of a DPF system will reduce the PM emissions as required by the more stringent BAAQMD standards. Since this requirement does not go into effect until January 1,2013, this portion of the work will only be authorized if the Council directs the composting operation to continue beyond December 31, 2012. Bid Process A Request for Quotation (RFQ) for engine overhaul service and installation of a diesel emissions retrofit device, also known as diesel particulate filter, was sent to three vendors on May 12,2010. Bids were received from two qualified vendors on June 1, 2010 as listed on the attached bid summary (Attachment B). Only two bids were received. Peterson Power's bid was $183,503 (fot items A, B, and C). Pape Machinery's bid was $175,172. The bid submitted by Pape Machinery did not include item C (cost to install a diesel particulate filter), and thus is not responsive. Alternatives Public Works Operations and Equipment Management discussed the options for the grinder based on current and near-term needs, and concluded that overhauling the grinder's Caterpillar 3412E engine was the least expensive method to ensure continuous operation of the composting operation until the anticipated closure 'in 2012. The alternatives that were investigated were replacing the existing engine with a new engine, pwchasing a used wood grinder, leasing a new grinder, and subcontracting wood grinding services. The cost of a new replacement engine would be $35,326 higher than the cost to rebuild the current engine and the cost of purchasing a used wood grinder would be approximately $250,000. The cost of leasing a new Morbark grinder would be $312,000 over the next two years. The cost of contract grinding services for the same two-year period would be $792,000. If the existing engine is rebuilt, no additional permitting would be required. The prOCess required to permit a new engine, or to purchase or lease another machine and permit it, would generate additional costs for contract grinding services. It could take three to six months to complete this process; during which time a contract grinder would need to be employed at a cost of $30,000 per month. Staff has reviewed all bids submitted and recommends that the bid submitted by Peterson Power Systems be accepted and that Peterson Power Systems be declared the lowest responsible bidder. CMR:304:10 Page 2 of3 ATTACHMENT B CITY OF PALO ALto CONTRACT NO.: Cll136458 GENERAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on the day of July, 2010, by and between the CITY OF PALO ALTO~ • California Charter~d Municipal Corporation ("CITY"), and PETERSON . POWER SYSTEMS, a corpOration in the State of California, with offices located at 2828 Teagarden Street, San Leandro, CA 94577, Telephone Number: 510-895-8400 ("CONTRACTOR"). In consideration of their mutual covenants, the parties hereto agree as follows: 1. SERVICES. CONTRACTOR shall provide or furnish the services ("Services'') descnbed in the Scope of Services, attached as Exhibit A. 2. EXHIBITS. The fonowing exhibits are attached to. and made a part of this Agreement: 181 "A" -Scope of Services 181 "a" -Schedule of Performance [8t "Cn -Compensation 181 "D" -Insurance Requirements B "En -Performance and/or Payment Bond (not required for this project) "P" -Liquidated Damages (Not applicable to 1his project) CONTRACT IS NOT COMPLETE UNLESS ALLEXHlBITSARE AITACOED. 3. TERM. The term of this Agreement shall be from the date of its full execution through December 31, 2012 or the completion of the services in accordance with the Schedule of Performance attached as Exhibit "a", subject to the provisions of Section Q and V of the General Terms and Conditions • . 4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this Agreement in a reasonably prompt and timely manner based upon the circumstances and direction communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the Schedule of Performance, attached as Exhibit B. Time is of the essence in this Agreement. 5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not to exceed coPIpenSation for the full performance of the Services and reimbursable expenses, if any: The total maximum lump sum compensation of dollars ($ );OR Li The sum of dollars ($ ) per hour, not to exceed a total maximum compensation amount of dollars ($ ); OR Rl A sum calculated in accordance with the fee schedule set forth in Exlnbit C, not to exceed a total maximum compensation amount of one hundred eighty-three thousand five hundred three dollars (5183,503.00). .. CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shan be at no cost to CITY. The City has set aside the sum of eigbteen thousand three hundred fifty dollars ($18,350.00) for Additional Services. CONTRACTOR shall provide Additional Services only by advanced, written authorization from the City Manager or designee. CONTRACTOR, at the CITY~s request, shall submit a detailed written proposal 1 Rev. December 1, 2009 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposa1s\RFQ\RFQ136458 CatapiUar 3412E Engine OverbauOContract CII1364S8 PETERSON POWER SYSTEMS.doe CITY OF PALO ALTO CONTRACT NO.: CII136458 including a description of the scope of services, schedule, level of effort, and CONTRACTOR's proposed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement. 6. COMPENSATION DURING ADDITIONAL TERMS. D CONTRACTOR'S compensation rates for each additional term shall be the same as the original term; OR D CONTRACTOR's compensation rates shall be adjusted effective on the commencement of each Additional Term. The lump sum compensation amount, hourly rates, or fees, whichever is applicable as set forth in section 5 above, shall be adjusted by a percentage equal to ~e change in the Consumer Price Index for Urban Wage Earners and Clerical Workers' for the San Francisco-Oakland-San Jose area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement of the applicable Additional Term, which shall be compared with the CPI published most immediately preceding the commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall CONTRACTOR's compensation rates be increased by an amount exceeding five percent of the rates effective during the immediately preceding term. Any adjustment to CONTRACTOR's compensation rates shall be reflected in a written amendment to this Agreement. 7. INVOICING. Send all invoices to the CITY, Attention: Project Manager. The Project Manager is: John Moran, Public Works Department, Equipment Management Division, at 3201 East Bayshore Road,CA 94303, Telephone: 650-496-6935. Invoices shall be submitted in arrears for Services performed. Invoices shall not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount of invoices within 30 days of receipt. GENERAL TERMS AND CONDITIONS A. AC;:CEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set forth in sections 1 through 6 above, these general terms and conditions and the attached exhibits. B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise and qualifications to complete the services described in Section 1 of this Agreement, entitled "SERVICES," and that every individual charged with the performance of the services under this Agreement has sufficient skill and experience and is duly licensed or certified, to the extent such licensing or certification is required by law, to perform the Services. CITY expressly relies on CONTRACTOR's representations regarding its skills, knowledge, and certifications. CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the industry, including all federal, state, and local operation and safety regulations. C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement. 2 Rev. December 1, 2009 \\CC-TERRA\jarreol\PURCHDOC\sAP Bids and Proposals\RFQ\RFQ136458 Catapillar 3412E Engine Overhaul\Contract Cl 1 136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: Cl1136458 D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR's business. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders. G. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR's performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR's performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR's request. When the grounds described above are removed, payment shall be made for amounts withheld because of them. H. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided) by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement. I. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR's work is completed in a satisfactory manner and complies with the provisions of this Agreement. J. CITY'S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager. K. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of fmal payment, CONTRACTOR's records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. L. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement. M. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described in Exhibit D. Insurance must be provided by companies with a Best's Key rating of A-:VII or higher and which are otherwise acceptable to the City'S Risk Manager. The City's Risk Manager must approve deductibles and self-insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONTRACTOR shall obtain a 3 Rev. December I, 2009 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFQ\RFQ136458 Catapillar 3412E Engine Overhaul\Contract CI 1 136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: CI I 136458 policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the City's Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to CITY's Risk Manager, together with the req\1ired endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance coverages and endorsements to the CITY's Risk Manager. CONTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR's liability or obligation to indemnify CITY under this Agreement. N. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section M relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fmes and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney's fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. The CONTRACTOR's obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that the CONTRACTOR shall not be obligated to indemnify for liability arising from the sole negligence or willful misconduct of the CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Contract. O. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR 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. CONTRACTOR acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. P. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement, certifies that it is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. Q. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days' prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY, CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination if for cause, CITY may deduct from such payment the amount of actual damage, if any, sustained by CITY due to Contractor's failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. 4 Rev. December 1, 2009 \\CC-TERRA\jarreo!\PURCHDOC\sAP Bids and Proposals\RFQ\RFQ136458 Catapillar 3412E Engine Overhaul\Contract Cll136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: Cll136458 EXHIBIT A SCOPE OF SERVICES Caterpillar 3412E Engine Overhaul The Contractor shall remove, transport, rebuild and reinstall the CAT Model 3412 Engine, Serial No. BDT00505 Modification No. 184-5369 Performance Spec 188-8709 ADV 860 HP on the 2001 Morbark grinder Model 5600 Serial No. 169- 1096 located at the City of Palo Alto landfill facility. All internal and external components will be repaired, overhauled, or replaced as required to return the function, condition, performance, and appearance of the engine to O.E.M specifications. The Contractor shall provide a warranty for the engine repair (parts and labor) for a period of no less than two years or 4,000 hours from the date of completion. The engine bell housing and the two clutch bell housings will be repaired or replaced. The clutch assembly will be replaced. The cooling system radiator and the turbocharger system after-cooler will be disassembled, cleaned, and repaired. Note: The engine has been operated a total of 8,381 hours. The price shown in Task #1 (A: Base Bid Item 1) shall represent the cost to perform all of the repair work described above, including travel, machining, fabrication, welding, core charges, shipping, shop supplies, environmental fees, service charges, freight, taxes, and any other charges that will appear on the final invoice. The final invoice will not exceed the cost quoted. All work hereunder shall begin on the date specified on the City's Notice to Proceed, and shall be completed within thirty (30) calendar days after the commencement date specified in the City's Notice to Proceed, with the exception of the Diesel Particulate Filter installation. Items as 02 through 06 on B: Optional Add Bid Items schedule are contingency items that mayor may not be necessary. The need for these items may not become apparent until teardown. If any of these items do become necessary, the City's project manager or his designee will be contacted for authorization of the additional repairs. Item 07 listed on C: Optional Add Bid Item schedule, Diesel Particulate Filter (OPF) is a contingency item that City representatives mayor may not determine will be installed. The Diesel Particulate Filter (OPF) system quoted that will reduce engine weighted particulate matter pollution (soot) to less than .25 grams per brake horsepower hour (glbhp-hr) in accordance with BAAQMD standards effective 01/01/13. The DPF system will be warranted for 5 years (parts and labor). If City representatives determines that the DPF system will be installed, the installation will occur subsequent to the engine overhaul. The Contractor shall perform data log monitoring to ensure that the proposed DPF device is appropriate for the engine application. Note: Current standards require particulate matter pollution to be less than .54 grams glbhp-hr for this engine. 6 Rev. December 1, 2009 \\CC-TERRA\jarreol\PURCHDOC\sAP Bids and Proposals\RFQ\RFQ136458 Catapillar 3412E Engine Overhaul\Contract Cll136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: Cll136458 Additional Services, if any, shall be authorized in accordance with and subject to the provisions of this contract based on the hourly rate listed in Exhibit "C". Contractor shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A". 7 Rev. December 1,2009 \\CC-TERRA\jarreo1\PURCHDOC\sAP Bids and Proposa1s\RFQ\RFQ136458 Catapillar 3412E Engine Overhau1\Contract C11136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: Cll136458 EXHIBITB SCHEDULE OF PERFORMANCE CONTRACTOR shall perform the Services so as to complete each task within the time period specified below. The time to complete each task may be increased or decreased by mutual written agreement of the project managers for CONTRACTOR and CITY so long as all work is completed within the term of the Agreement. Upon request CONTRACTOR shall provide a detailed schedule of work consistent with the schedule below. Task 1. 2. 3. Contractor to remove, transport, overhaul and reinstall Caterpillar 3412E engine per the specifications and requirements provided in the scope of work: Optional Add Bid Items 02 through 06 if necessary: Optional Add Bid Item -Diesel Particulate Filter System: 8 Complete _x_Days or Weeks FromNTP 30 60 by December 31, 2012 Rev. December 1,2009 \\CC-TERRA\jarreol\PURCHDOC\sAP Bids and Proposals\RFQ\RFQ136458 Catapillar 3412E Engine Overhaul\Contract Cl 1 136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: CII136458 EXHIBITC SCHEDULE OF FEES CONTRACTOR shall perform the tasks as described and budgeted below. Any services provided or hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to City. DESCRIPTION OF TASK NOT TO EXCEED COMPENSATION PER TASK INCLUDING REIMBURSABLES Task 1 $91,253.00 (Remove, transport, overhaul and reinstall Caterpillar 3412E engine per the specifications and requirements provided in the scope of work -RFQ item #1 -Sch A) Task 2* $35,715.00 (provide and replace Opti«malltem #1: Engine Block (if necessary) RFQ item #1 -Sch B, includes labor, parts, and sales tax) Task 3* $5,480.00 (Provide and replace Optional Add Item #2: Cylinder Heads (if necessary) RFQ item #2 -Sch B, includes labor, parts, and sales tax) Task 4* $8,406.00 (provide and replace Optional Add Item #3: Engine Crankshaft (if necessary) RFQ item #3 -Sch B, includes labor, parts, and sales tax) Task 5* $4,884.00 (Provide and replace Optional Add Item #4: Radiator (if necessary) RFQ item #4 -Sch B, includes labor, parts, and sales tax) Task 6* $1,717.00 (Provide and replace Optional Add Item #5: Turbocharger Cooler (if necessary) RFQ item #5 -Sch B, includes labor, parts, and sales tax) Task 7* $36,048.00 (provide and install Option Add Item: Diesel Particulate Filter System by Johnson Matthey Model #CRT5-H-EIEO (if necessary) RFQ item #1 -Sch C, includes labor, parts, and sales tax) TOTAL NOT TO EXCEED $183,503.00 *Task 2 through 6 will only be authorized by CITY if during the process of performing Task 1 it is determined that replacement is necessary by CONTRACTOR. Replacement shall be at the quoted prices for labor and parts, plus sales tax as noted. Item 7 is subject to City authorization. The maximum amount of compensation to be paid to Contractor, including both payment for services and reimbursable expenses for all repairs, shall not exceed one hundred eighty-three thousand five hundred three dollars ($183,503.00). 9 Rev. December 1,2009 \\CC-TERRA\jarreo1\PURCHDOC\sAP Bids and Proposa1s\RFQ\RFQ136458 Catapillar 3412E Engine Overhau1\Contract Cll136458 PETERSON POWER SYSTEMS.doc CITY OF PALO ALTO CONTRACT NO.: Cll136458 In the event Additional Services are authorized, beyond the tasks identified above, compensation for additional services shall not exceed eighteen thousand three hundred fifty dollars ($18,350.00). The applicable hourly rate (in-shop rate) shall be at one hundred forty-three dollars ($143.00) as quoted. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of this contract. CONTRACTOR shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. 10 Rev. December 1, 2009 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFQ\RFQ136458 Catapillar 3412E Engine Overhaul\Contract Cll136458 PETERSON POWER SYSTEMS.doc ,f " POLICY NUMBER: PMI G23860683 003 ENDORSEMENT NUMBER: •• NAMED INSURED: Peterson Holding Co.; (per policy) COMMERCIAL GENERAL LIABILITY CG 20100704 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS -SCHEDULED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): Location(s) Of Covered' Operations Any owner, Lessee or Contractor whom you have \, Per written contract or agreement. agreed to include as an ~dditional insured under a written contract or agreement. provided such contract was executed prior to the date of loss. , • w •• . .. .... .. ., M. • .... • ........ ~_ M.. ... .. . .... _.. . ~ . .. . .. .... .... , .. . .. -... --.. .... ..... .. .. , .. . .. .. ..... • w •• . .. " .. . . \ . ... '. . .. .. . .... Information reQuired to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section II -Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injurY', "property damage" or "personal and advertising injury" caused, in Whole or in part, by: 1. Your acts or omissions; or 2. The acts or omissions of those acting on your behalf; in the performance of y~ur ongoing operations for the additional insured(s) at the location(s) desig- nated above. B. With respect to the insurance afforded to these additional insureds, the following additional exclu- sions apply: This insurance does' not apply to "bodily injury" or "property damage" occurring after: 1. All work, including materials, parts or equip- ment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or 2. That portion of "your work" out of which the injqry or damage arises has been put to its in- tended use by any person or organization other than another contractor or subcontractor en-. gaged in performing operations for a principal as a part of the same project. CG20 10 07 04 © ISO Properties, Inc., 2004 Page 1 of'1 o POLICY NUMBER: PMI G23860685 003 ENDORSEMENT NUMBER: -- COMMERCIAL GENERAL LIABILITY CG 20 37 0704 NAMED INSURED: Peterson Holding Co., (per policy) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS -COMPLETED OPERATIONS This endorsement modifies insurance provided under the following: . COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): Location And Description Of Completed Qperations Any owner, Lessee or Contractor whom' you have Per written contract or agreement. ag~eed to include as an additional insured under a written contract or agreement, provided such con- tract was executed prior to the date of loss. .. . . .. ... " .... , . .... .. .. .~. .-.... . .. . . -.. .. . . . .. .. . .-.... _ .... _. ----,'; ...... : .. ..:: ..... ...;..,~ :..:,... .•.... .. --.. ' .. - - ... __ . '. --""-. . . _--... --- Information required to complete this Schedule, if not shown above, will be shown in the Declarations. Section II -Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury" or "property dam- age" caused, in whole or in part, by "your work" at the location designated and described in the sched- ule Of this endorsement performed for that additional insured and included in the "products-completed operations hazard". CG 20 370704 © ISO Properties, Inc., 2004 Page 1 of 1 o TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DATE: AUGUST 2, 2010 REPORT TYPE: CONSENT ITEM DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT CMR: 321:10 SUBJECT: Adoption of a Resolution Authorizing the City Manager to Submit a Grant Application to the State of California Department of Housing and Community Development from HOME Investment Partnerships Program (HOME) Funding for 801 Alma Family Housing Project for an Amount Up to $3 million EXECUTIVE SUMMARY The recommended action will enable the City of Palo to submit a grant application to obtain HOME funds for housing programs and activities, to provide additional funding to Eden Housing, Inc. and Community Housing Alliance to fill an existing funding gap for the development of a50-unit 100% affordable housing project for extremely-low and very-low income households at 801 Alma Street. In addition, if the application is successful, the additional funding for the project will allow the developers, Eden Housing and Community Housing Alliance, to submit a competitive application for the Low Income Housing Tax Credit Allocation earlier than anticipated. No monies from the General Fund will be committed and used. The HOME Investment Partnership Program is a type of federal assistance provided by the United States Housing and Urban Development Department to state and local governments to create and maintain affordable housing. RECOMMENDATION Staff recommends that the City Council adopt a resolution authorizing the City Manager to submit a grant application to the State for an amount up to $3 million from the State of California HOME Investment Partnerships Program, and to accept the grant and execute the grant agreement and any other documents required to implement the grant. BACKGROUND On June 1, 2010, the State of California Department of Housing and Community Development release a Notice of Funding Availability (NOFA) funded by HOME Investment Partnerships Program. Applications are due September 1, 2010, and grant awards will be announced by December 2010 or January 201 i. A total of $58 million is available, with $32 million for rental housing projects, $23 million for programs, and $3 million for First Time Homebuyer Program funds. Grant applications for rental projects using Low Income Housing Tax Credits may apply for CMR: 321:10 Page 1 of4 · up to $3 million. No matching funds from the applicant are required. The State grant funds must be used by the applicant( s) for the construction or rehabilitation of very low and low-income rental housing, with assisted units serving households with incomes not exceeding 60 percent ofthe area median income. The City will have 30 months to expend the funds following the award date. Applications for HOME funds are only accepted from cities and counties that have not been designated as participating jurisdictions by the United State Housing and Urban Department and are not participants in a HOME consortium, and certified Community Housing Development Organizations (CHDOs). The City of Palo Alto is one of the cities eligible to apply for HOME funds from the State of California Department of Housing and Community Development. Since neither Eden Housing nor Community Housing Alliance is a CHDO and eligible to directly apply for funding, the City will be applying for HOME funds for the construction of 80 1 Alma Street project. DISCUSSION Use of Grant Award Staff proposes that the City apply for an amount up to $3 million. Ifthe application is successful, the award will be provided to Eden Housing and Community Housing Alliance in the form of a loan for the construction ofthe 50-unit affordable family housing located at 801 Alma Street. The additional funding for the project will significantly reduce Eden Housing and Community Housing Alliance's need for a fundraising campaign, and will help them submit a competitive application for tax credits in 2011 rather than 2012. The loan to Eden Housing and Community Housing Alliance will have similar terms as the existing City loan, which is evidenced by a Note and Deed of Trust secured by the property. The Note will bear simple interest at 3% per annum, and no payments of principal or interest will be due until the fifty-fifth (55 th) anniversary of the date ofthe Note. The loan will be forgiven in its entirety on the maturity date subject to and in accordance with Section 7.2.5 ofthe Acquisition and Development Agreement dated August 6, 2007 by and between the Eden Housing and Community Housing. In return, the proposed project will be affordable to extremely low and very low income households, and the affordability restrictions will be in place for a minimum of 55 years after the issuance of a certificate of occupancy. The loan terms are typical to this type of development and similar to other affordable housing properties and developments funded with City funds. Some of the City's standard loan terms described here may need to be modified to meet the requirements of other lenders or funding programs for construction or permanent sources of funds. Project Description On November 9, 2009, the City Council certified an Environmental Impact Report and approved Architectural Review for a proposed 50-unit family affordable housing project at 801 Alma Street, sponsored by Eden Housing and Community Housing Alliance. The 50 affordable units will be rented to low, very low and extremely low income households earning between 20% and 50% ofthe area median income in a mix of one, two, and three bedroom units. Eden Housing and Community CMR: 321:10 Page 2 of4 Housing Alliance estimate the overall development cost for the project to be approximately $29 million. As of this date, Eden Housing and Community Housing Alliance have received a funding commitment from the County in the amount of $1.6 million for construction and are pursuing additional funding from the County. For the last several months, Eden Housing and Community Housing Alliance have focused most of their efforts on raising additional funding for the project. The Community Working Group, the affiliate of Community Housing Alliance, is leading the efforts for a fundraising campaign that has been plauned and is just underway. RESOURCE IMPACT A $3 million grant award will significantly increase the City's resources for very low-income rental housing. With the lack of recent and projected new commercial development and the allocation of projected revenues from in-lieu fee payments for BMR requirements, available housing funds have been low. As applicant, the City may use up to $50,000 ofthe total grant award for administrative costs. POLICY IMPLICATIONS The actions recommended in this report implement the City's adopted Housing Element policies and programs supporting the development of very low and extremely low income housing. Acceptance of the grant will obligate the City to utilize the grant funds for rental housing projects that meet the HOME requirements, and use the funds for the construction of the 801 Alma Street project. The HOME grant application is consistent with adopted City housing policies as expressed in the Comprehensive Plan's Housing Element, the HUD Consolidated Plan, and past Council actions, which will help the City address State requirements for meeting housing needs of this population. These 50 units will be counted towards the City's housing production goals for the 2007 to 2014 Housing Element period. ENVIRONMENTAL REVIEW The grant application is not considered a project subject to the California Environmental Quality Act (CEQA). If grant funds are awarded for an affordable housing project, the designated project would be subject to CEQA. The CEQA compliance for 801 Alma St. Family Housing was completed last year. PREPARED BY: DEPARTMENT HEAD REVIEW: CJN\ 'JJ\~ CURTIS WILLIAMS Director ofPlauning and Community Environment CMR: 321:10 Page 3 of 4 CITY MANAGER APPROVAL: ATTACHMENT JA Cit Attachment A: Resolution of the Council of the City of Palo Alto Authorizing the City Manager to submit a grant application to the State of California Department of Housing and Community Development for the HOME Investment Partnerships Program ("HOME") Funding for 801 Alma Family Housing Project for an amount up to $3 million COURTESY COPIES Eden Housing, Inc. Community Housing Alliance, Inc. CMR: 321:10 Page 4 of4 ATTACHMENT A Not Yet Approved Resolution No. Resolution of the Council of the City of Palo Alto Authorizing the City Manager to Submit a Grant Application to the State of California Department of Housing and Community Development for the HOME Investment Partnerships Program ("HOME") Funding for 80 I Alma Family Housing Project for an Amount Up to $3 Million WHEREAS, The California Department of Housing and Community Development (the "Department") is authorized to allocate HOME Investment Partnerships Program ("HOME") funds made available from the U.S. Department of Housing and Urban Developme_nt ("HUD"). HOME funds are to be used for the purposes set forth in Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, in federal implementing regulations set forth in Title 24 of the Code of Federal Regulations, part 92, and in Title 25 of the California Code of Regnlations commencing with section 8200; and WHEREAS, on June 1, 2010 the Department issued a 2010 Notice of Funding Availability announcing the availability offunds under the HOME program (the "NOFA"); and WHEREAS, in response to the 2010 NOFA, the City of Palo Alto, a municipal corporation, (the "Applicant"), wishes to apply to the Department for, and receive an allocation of, HOME funds. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. In response to the 2010 NOFA, the Applicant shall submit an application to the Department to participate in the HOME program and for an allocation of funds not to exceed Three Million Dollars ($3,000,000) for the following activities and/or programs: construction of 50-unit affordable family housing project located at 801 Alma St., Palo Alto, CA. SECTION 2. If the application for funding is approved, then the Applicant hereby agrees to use the HOME funds for eligible activities in the manner presented in its application as approved by the Department in accordance with the statutes and regulations cited above. SECTION 3. The City Manager is hereby authorized and empowered to execute in the name of the City of Palo Alto all necessary documents to effectuate the purpose of this resolution, including but not limited to: (1) Making application to State Department of Housing and Community Development HOME Investment Partnerships Program for an amount up to Three Million Dollars ($3,000,000). 1 100719 'yn 0120454 " Not Yet Approved (2) Executing a Standard Agreement with State Department of Housing and Community Development and any amendments thereof, and any related documents necessary to participate in the HOME Investment Partnerships Program. SECTION 4. The Council finds that the application for the HOME funds is not considered a project under the California Environmental Quality Act. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney 100719 syn 0120454 2 APPROVED: Mayor City Manager Director of Planning and Community Environment Director of Administrative Services RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO NORMAN BROWN UPON HIS RETIREMENT WHEREAS, Norman Brown has served in various capacities for the City of Palo Alto from May 12, 1981 to June 29, 2010 as Laborer I, Utilities Trainee, Utility Installer/Repairer Assistant, Utility Installer/Repairer, Electrical Assistant 1, Electrician – Apprentice, Electrician, Electrician–Lead, and Supervisor Electrical Systems; and WHEREAS, Norman Brown has enhanced the quality of life for the citizens of this community through strict adherence to industry standards and the City of Palo Alto’s safe work practices for substation power delivery systems providing our customers with reliable electric services; and WHEREAS, Norman Brown worked with his fellow employees in the redesign and rebuilding of the Park Boulevard Substation installing new superstructure to provide local area residents and businesses with additional primary distribution circuits, and assisted in making the system more reliable; and WHEREAS, Norman Brown was essential in the decommissioning of Alma Substation. Norman Brown worked with the City’s Engineering team on locating and hiring a salvage company, which purchased the substation transformers, saving the City budgetary dollars. He helped to secure $1,000,000 for the General Fund by completing the decommissioning on time; and WHEREAS, Norman Brown, having experience and knowledge of the City’s electric substation infrastructure, has provided his expertise, guidance, leadership and support to fellow employees in the Utilities Electric Operations Division for 27 years; and WHEREAS, the City of Palo Alto desires to recognize the meritorious service of Norman Brown. NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of Palo Alto hereby commends the outstanding public service of Norman Brown and records its appreciation as well as the appreciation of the citizens of this community for the service and contribution rendered during his 29 years of employment with the City. INTRODUCED AND PASSED: AUGUST 2, 2010 ATTEST: APPROVED: ____________________ ______________________ City Clerk Mayor APPROVED AS TO FORM: ____________________ ______________________ City Attorney City Manager RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO JUAN COLIN UPON HIS RETIREMENT WHEREAS, Juan Colin has served in various capacities for the City of Palo Alto from August 15, 1976 to June 29, 2010, as Building Service Assistant, Utilities Trainee, Utility Installer/Repairer Assistant, Mechanic Unit Repairer, Installer/Repairer Lead, Supervisor Water, Gas, Wastewater, Electrical Assistant 1, Lineperson/Cable Splicer – Apprentice, Lineperson/Cable Splicer, Lineperson/Cable Splicer – Lead, and Supervisor of Electric Systems; and WHEREAS, Juan Colin has enhanced the quality of life for the citizens of this community by ensuring their safety by delivering safe, reliable electric service through completion of major additions such as new business underground line extensions, underground system rebuilds, and overhead to underground conversion projects; and WHEREAS, Juan Colin was an essential contributor since 2004, coordinating the installation of new substructures, cable, and electrical equipment. Juan Colin played an important role in the redesign of existing systems providing more flexibility through better use of current and new equipment, such as pad mounted switches and transformers; and WHEREAS, Juan Colin, working alongside the City’s Engineering and Substation teams, assisted in the decommissioning of Alma Substation by installing new substructures and 12kV primary conductors moving the load from the Alma to Quarry Substation with little impact to residential and commercial customers. Juan Colin’s knowledge of the system was crucial in meeting the deadline for the decommissioning of the Alma Substation; and WHEREAS, Juan Colin, having experience and knowledge of the City’s overhead and underground infrastructure, has provided his expertise, guidance, leadership and support to fellow employees in the Utilities Electric Operations Division for 34 years; and WHEREAS, the City of Palo Alto desires to recognize the meritorious service of Juan Colin. NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of Palo Alto hereby commends the outstanding public service of Juan Colin and records its appreciation as well as the appreciation of the citizens of this community for the service and contribution rendered during his 34 years of employment with the City. INTRODUCED AND PASSED: AUGUST 2, 2010 ATTEST: APPROVED: ___________________ ______________________ City Clerk Mayor APPROVED AS TO FORM: ____________________ ______________________ City Attorney City Manager TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: CITY MANAGER DATE: AUGUST 2, 2010 CMR: 336:10 REPORT TYPE: CONSENT SUBJECT: Approval of Amendment to Contract with Downtown Streets Team to Add $69,888 for Additional Janitorial Services for the City's Five Downtown Parking Garages for' a Total of $107,744 for One Year; Adoption of a Budget Amendment Ordinance to provide appropriations of $69,888 within the Special Revenue Parking District Fund for Additional Janitorial Services for the City's Five Downtown Parking Garages RECOMMENDATION Staff recommends that the City Council: 1. Approve an amendment to the City's existing contract with the Downtown Streets Team to add $69,888 for increased janitorial services for the City's five downtown parking garages ending August 15, 2011 for a total amount of $107,744; and 2. Adopt a Budget Amendment Ordinance to provide appropriations of $69,888 within the Special Revenue Parking District Fund, increasing the existing Downtown Streets Team Contract and additional janitorial services at the five downtown parking garages. BACKGROUND The downtown business district must be maintained in a safe, clean and appealing manner. Downtown Palo Alto attracts visitors, shoppers, diners, employees and local residents who expect a positive experience when using downtown services. Not only is cleanliness an important civic priority, it is essential to maintaining a healthy and vital economic environment which continues to generate healthy tax revenues. Cleanliness of the City's parking garages remains an issue in spite of on-going City efforts. Staff receives feedback from garage users and downtown stakeholders indicating substandard conditions of cleanliness. City staff has worked with the Chamber of Commerce Parking Committee to investigate ways to increase security and cleanliness to meet the expectations of downtown users. CMR: 336:10 Page 1 of3 After over a year of discussions with stakeholders, a combination of services is recommended to raise the standards of cleanliness and security. Because the downtown parking district provides its own dedicated revenue stream, it is possible to provide or offset costs for increased services through the parking assessment district. Approximately three years ago, the City terminated its private security contract in downtown parking garages at approximately $170,000 per year because staff concluded it was largely ineffective in addressing the security and cleanliness concerns downtown, especially in the parking garages. Cancellation of the private security contract provides the City with the opportunity to redirect these funds to more effective services. This contract amendment is part of a multi-pronged approach aimed at significantly raising downtown standards. Other measures currently or soon to be implemented are increased police presence and increased social services. The combination of increased security, frequent cleaning and outreach to unhoused individuals is expected to produce visible results. Another area of enhanced downtown services is direct outreach to homeless individuals in the parking garages. As the Council is aware, the Downtown Streets Team is a program aimed at reducing homelessness by modeling positive behavior among the homeless· population. As a result, many Downtown Streets Team participants, once homeless, are housed and are in a unique position to provide outreach to currently homeless individuals to discourage inappropriate behaviors particularly in the parking garages. Downtown Streets Team has proposed adding outreach and counseling services for the 2011 fiscal year. The proposed $20,112 is separate from the subject of this report and is within the City Manager's financial authority, therefore not requiring Council Approval. DISCUSSION The proposed contract increases the current 20 hours per week to a total of 112 hours per week for all five parking garages in two shifts - 6 am to lOam and 9 pm to 1 am, seven days a week. The shifts were selected to increase presence during the evening and early morning hours and to ensure cleaning occurs prior to employees arriving. The City currently pays $37,856 for the 20 hours per week. With the amendment the City will pay $107,744 for 112 hours per week of cleaning services. The contract will be extended for one year to August 2011 at which time Staff will evaluate the effectiveness of the increased cleaning services. RESOURCE IMPACT The downtown parking assessment district revenues are held within the Special Revenue, Special Districts Fund, whereby cleaning and maintenance services are reimbursable through permit fees charged in the downtown parking assessment district area. The appropriation for the increase in this contract will be paid for from district revenues, resulting in reduced retained earnings and impact to the Special Districts Fund reserve, and will not require use of General Fund resources . . CMR: 336:10 Page 2 of3 Attachment A ~ NO.1 TO AGREEMENT NO. Sll137328 BETWEEN THE CITY OF PALO AL~O AND DOWN'tOWN STREETS INCORPORATED This Amendment No. 1 to Agreement No. S11137328 ("Agreement") is entered into August 2, 2010, by and between the CI,;[,Y OF PALO ALTO ("CITY"), and DOWNTOWN STREETS INCORPORATED a Services Provider located at Palo Alto, California (rrCONTRACTORtr ). R E CIT A L S: WHER~AS, the Agreement was entered into between the parties for the provision of services to clean and beautify Downtown along University; and WHEREAS, the parties wish to amend the Agreement; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of thi~ Amendment, the parties agree: 1. TERM OF AGREEMENT. The Term of the agreement is hereby I . I . extended from June 30, 2011 to ~ugust 15, 2011. ! I 2. SCOPE OF WORK. Scope of work is amended to reflect increase services to be provided by DownTown Streets Incorporated. Specifically, CONTRACTOR shall supply 4 Team members to work. 7 days a week in 2 different shifts. These team members will clean in accordance Greenwaste of Palo Alto Contraot Amendment 1 1 IN WITNESS WHEREOF, the parties have ~Y their duly authorized representatives executed this Amendment on the date first above written. APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: City Manager Director of Administrative Services Greenwaete of Palo Alto Contract Amendment 1 DOWNTOWN STREETS INCORPORATED BY:~ Name: Ef~~· llUtAilJ)~{)tJ Title: Pftl1/W 3 EXHIBIT A ~IDOWttTOWtt ~5TREET5 TEAM Garage Cleaning Services Proposal Submitted to the Palo Alto Chamber of Commerce Parking Committee By Downtown Streets Team June 23, 2010 Problem- Despite the cities current efforts to maintain safe, clean and appealing garages in our downtown district, the Palo Alto Chamber of Commerce Parking Committee has voiced a concern that garages are not only serving their intended purpose. The Downtown Streets Team. (DST) affirms that the garages are still dirty and have become temporary shelter for our community's homeless population. Due to these problems, the garages do not serve as an inviting parking solution for those working in, or visiting downtown Palo Alto. What We Know- Security guards have proved to be ineffective in addressing this problem. They have no authority to ticket trespassers or arrest those drinking in public. In addition, they do not solve the issue of cleanliness in the garages. Lastly, they have no on-site supervision and provide no alternative to the homeless sleeping in the garages. The Palo Alto Police Department has committed to addressing the committee's concerns by staffing two officers to patrol the downtown area on bicycles. While law enforcement has proved to be effective in temporarily ridding the garages of loiterers and those sleeping there, a long-term impact can only be reached with a combined 'carrot and stick' approach. Using the "stick" alone will not solve the problem long term. It is DST's belief that ticketing and then subsequently arresting the homeless people in the garages will only remove them for one night and will not provide a long-term alternative to sleeping in the garages. Most importantly, DST will clean the garages while employing those who were formerly causing the unclean conditions. Downtown business is sure to suffer if the parking garages become infamous for homeless camps, defecation, public alcohol consumption, and urban decay. DST was founded by the Palo Alto BID in the hopes of reducing panhandling and to clean downtown's streets. The following proposal asserts our plan to take our proven model into the garages and further clean and beautify downtown Palo Alto and further remove people from our streets. Proposal- As defined in proposal # A-S4D7, DST would 'hire' 4 team members to work 7 days a week in 2 different shifts. These team members would clean 'all five garages in downtown Palo Alto in two-man teams from 6am-lOam and 9pm-l am, seven days a week. These hours were selected in order to encounter, and deter, sleeping in garages. In order to successfully fulfill the vision of the Parking Committee, we need both the carrot (DST) and the stick (law enforcement). The corresponding financial proposal would cover the cost of the plan outlined within this proposal. DST hopes the chamber will choose to grant funds in the amount of $69,888 to provide janitorial services in Palo Alto's parking garages. ORDINANCE NO.xxxx ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 2011 TO PROVIDE APPROPRIATIONS OF $69,888 WITHIN THE SPECIAL REVENUE PARKING DISTRICT FUND FOR ADDITIONAL JANITORIAL SERVICES FOR THE CITY'S FIVE DOWNTOWN PARKING GARAGES. The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 28, 2010 did adopt a budget for Fiscal Year 2011; and B. The downtown business district is served by five parking garages throughout the downtown area; and' C. There is an ongoing concern by the Chamber of Commerce Parking Committee, downtown stakeholders, and garage users pertaining to parking garage cleanliness, and D~ Janitorial services for the parking garages are contracted with the Downtown Streets Team which provide 20 hours of cleaning per week; and E. To increase cleanliness within the downtown parking garages, staff proposes an increase in janitorial services to 112 hours, two shifts from 6am to lOam and 9pm to lam 7-days per week; and F. City Council authorization is needed to amend the Fiscal Year 2011 budget for appropriation of $69,888 (Sixty Nine Thousand Eight Hundred Eighty Eight Dollars) to increase the contract with Downtown Streets Team, providing additional janitorial services for the City's five downtown parking garages. SECTION 2. The sum of $69,888 (Sixty Nine Thousand Eight Hundred Eighty Eight Dollars) is hereby appropriated to Contract Service expenses in the Special Revenue Parking District Fund, and the corresponding reserves will be reduced in the Special Revenue Parking District Fund. SECTION 3. The Special District Fund Reserve is hereby decreased by the sum of $69,888 (Sixty Nine Thousand Eight Hundred Eighty Eight Dollars). As a result of this change the Special District Fund Reserve will be reduced from $876,000 to $806,000. SECTION 4. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the.City Council is required to adopt this ordinance SECTION 5. The Council of the City of Palo Alto hereby finds that this is not a proj ect under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTION 6. AS.provided in Section 2.04.350 of the Palo Alto Municipal Code, this Ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: ,NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney APPROVED: Mayor City Manager Director Services of Administrative TO: . FROM: DATE: HONORABLE CITY COUNCIL ASSISTANT CITY MANAGER AND ADMINISTRATIVE SERVICES DEPARTMENT AUGUST 2, 2010 CMR: 335:10 REPORT TYPE: CONSENT SUBJECT: Approval of Amendment to City Manager's Employment Agreement Relating to Housing Capital Improvements and City Loan and Capital Improvements Plan Up to $250,000 and Adoption of Ordinance Amending the Fiscal Year 2011 Budget in the Amount of $125,000 from the General Fund Budget Stabilization Reserves for Capital Improvements to City Manager's Home Recommendation l. In accordance with the City Manager's Employment Agreement, City Council approval is requested for $250,000 of potential capital improvements to City Manager's house (as identified) to allow a reallocation of the equity ownership share. 2. Amendment of the City Manager's Employment Agreement to allow the City to loan the City Manager up to $125,000 for Capital Improvements to the home at 335 Webster. Loans will be made on a dollar for dollar matehing basis, with an equal equity eontribution made by the City Manager. 3. Amendment to the City Manager's Employment Agreement,that e1arifies that the Mayor may approve City Manager funded capital improvements less than $50,000 in the future to allow for a reallocation of equity interests. (Since this CMR approves $250,000 in improvements for reallocation purposes, this change will only affect future improvements beyond $250,000. All such improvements would be funded by the City Manager.) 4. Approve a Budget Amendment Ordinance (BAO) in the Amount of $125,000 funded from the General Fund Budget Stabilization Reserve. CMR:335:10 Pagelof4 Background The City Manager purchased a home at 335 Webster Street in March 2010 for $1,875,000. Under the terms of his employment agreement with the City, the City contributed 75% of the purchase price through an equity investment and loaned the Manager the remaining 25%. The City equity contribution was $1,406,250 and the Manager's Loan is $468,750. The City'S equity share in the house is 75% and the Manager's equity share is 25%. The Manager's Employment Agreement allows a City equity contribution bf$I,500,000 and a Manager's Loan of$500,000 for a total of $2,000,000. The City Manager's Employment Agreement also allows for capital improvements (Section 6.7) that result in a reallocation of equity ownership interests only with the written approval of the City in advance of the initiation of capital improvements. The City Manager's Employment Agreement also requires City Council approval of any additional mortgages recorded against the property. Discussion The City Manager wants to make capital improvements to his house and seeks City approval. The Manager plans a series of house improvements that could total up to $250,000 and seeks Council approval in advance for such improvements. These primarily include but are not limited to kitchen renovation and improvements, bathroom improvements including new tile and flooring, new flooring in the house with stair repair, painting, plumbing and electrical work and some landscaping. If the full $250,000 in capital improvements were made, the City'S equity share in the house would be 66.2% and the Manager's share would be 33.8%. City Equity Keene's Equity Transactions Share % Share % Purchase Price 1,875,000 1,406,250 75.0% 468,750 25.0% Potential Capital Improvements 250,000 0 250,000 2,125,000 1,406,250 66.2% 718,750 33.8% In addition, the City Manager seeks to make full use of the $2,000,000 in equity and loans in the City Manager Employment agreement by amending the agreement to allow up to $}25,000 in city loans towards capital improvements. Such loans would only be given on a matching basis through equal direet equity contributions by the City Manager, with the loans to be repaid under the interest rates and term of the loan language in the current City Manager Employment Agreement. For example, if the City Manager made capital improvements totaling $100,000, the Manager would directly provide $50,000 and the City would loan the Manager $50,000. The City Manager is seeking approval for $250,000 in capital improvements through this CMR but City CMR:335:10 Page 2 of4 loans will be made only on a matching basis to any Manager's Contribution and the total in Capital Improvement Loans will not exceed $125,000. While unlikely that the City Manager will make more capital improvements than the $250,000 authorization requested in this item, it is requested that any further future capital improvements less than $50,000 (that reallocate equity share) be authorized by the Mayor's review and approval on behalf of the City. Any such improvements would be funded by the City Manager and his equity share would increase by such amount. Resource Impact Recommended action could result in City Loan for Capital Improvements to the City Manager totaling $125,000. Consistent with his house loan, funding would come from the General Fund' Budget Stabilization Reserve (BSR). As a result of this transaction the BSR will be reduced from $23,885,611 to $23,760,611. In FY 2010 a BAO for $2,000,000 was approved by Council, but only $1,875,000 was used to purchase the property. The remaining funds were returned to the BSR.'Ifiis action item would re-instate those funds. The loan would be repaid with bi-weekly payments by the Manager with interest as stated in the City Manager's Employment Agreement section 6.3.3 (the rate will be equal to the lower 5.5% or the sum of the City's portfolio rate, which is defined as the anuual rate of return on investment funds of the City of Palo Alto during the most recent fiscal year, plus one quarter percent (114%) as calculated annually by the City's Director of Administrative Services. Policy Impact The Capital Improvements Loan request is within the existing $2 million equity and loan commitment cap from the City in the City Manager's Employment Agreement. Nevertheless, staff appropriately analyzed the request as any loan can run a risk given changes in real estate market conditions and the potential defanIt as in any loan. Depending on the actual amount invested in the home capital improvements, if sold in the short-term the house would need to sell for $2.0-$2.26 million for the City to recuperate its investment. Given that the transaetion stays within the $2 million cap originally approved by Council, staff feels comfortable in recommending the transactions. TIle capital improvements will add to the value of the property. In addition, the expected tenure of the City Manager provides time for the property to appreciate. City Manager Loan (Original) Potential Capital Loan (Maximum) Total Loans City's Equity Share Total City Transllction CMR:335:10 468,750 125,000 (requires watching by City Manager) 593,750 1,406,250 2,000,000 Page 3 of 4 Attachment A: Amendment No. One to Employment Agreement Between the City Of Palo Alto and James R. Keene, Jr. Exhibit A: Employment Agreement Between the City of Palo Alto and James R. Keene, Jr. Attachment B: Ordinance of the Council of the City of Palo Alto Amending the Budget for Fiscal Year 2011 to Provide Appropriations of$125,000 from the General Fund Budget Stabilization Reserve for Capital Imp vements to the City Manager's Home PREPARED BY: CITY MANAGER APPROVAL: CMR:335:1O L OPEREZ Director, Administrative Services PAMELA W. ANTIL Assistant City Manager Page4of4 ATTACHMENT A AMENDMENT NO. ONE TO EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PALO ALTO AND JAMES R. KEENE, JR. Ibis Amendment No. One to EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PALO ALTO AND JAMES R. KEENE, JF.. ("Agreement") is entered into on August -' 2010 by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and JAMES R. KEENE, JR. ("Manager"), an individual, located at 250 Hamilton Avenue 7u, Floor, Palo Alto, CA. RECIT ALS: WHEREAS, the original EMPLOYMENT AGREEMENT BETWEEN THE Crry OF PALO ALTO AND JAMESR KEENE, JR., attached hereto and incorporated herein as Exhibit "A" was entered into between the parties for the serviees as City Manager on or about August 8, 2008; and WHEREAS, the parties wish to amend the Contract; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1: Section 6.7.1. Approval of Capital ImprOVements of$50,000 or Less is hereby added to read as follows: "6.7.1. Approval of Capital Improvements of $50,000 or Less. For capital improvements of less than $50,000 resulting in a change in equity share, "City Approval" may be granted in writing by the Mayor." SECTION 2: Section 6.7.2. Capital Improvements Loan is hereby added to read as follows: "6.7.2. Capital Improvements Loan. City shall loan the Manager a sum not to exceed $125,000 at the loan interest rates and term in Section 6.3.3, to be used for capital improvements to the home on a matehing contribution basis ("Capital Improvements Loan"). For every dollar the City Manager contributes through a Manager's Contribution to capital improveroents, the City will loan the Manager an equivalcnt amount in matching funds, capped at a total Capital Improvements Loan of $125,000. For example, if the City Manager makes a contribution of $50,000 (Manager's Contribution), the City will loan the Manager $50,000 for a total of $100,000 in eapital improvements. If the Manager makes a contribution of $150,000 (Manager's Contribution), the City'S loan match will be capped at $125,000. Such capital improvements and a City Capital Improvements Loan can be made in increments but in no ease will the City loan the Manager a total of more than $125,000 for capital improvements. The loan amount will result in a reallocation of ownership interest where the City's interest will decrease and City Manager's interest will increase as described in paragraph 6.7. 1 100727 ,il 0111497 SECTION 3. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authon7.ed representatives executed this Amendment on the date first above written. APPROVED AS TO FORM: CITY OF PALO ALTO City Attorney City Manager APPROVED: Mayor Director of Administrative Services Title: _________ _ Attachments: EXHIBIT "A": EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PALO ALTO AND JAMES R. KEENE, JR. 2 100727 'h 0111497 Exhibit A EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PALO ALTO AND JAMES R. KEENE, JR. TIllS AGREEMENT is between the City of Palo Alto, a California municipal corporation and chartered city ("City") and James R. Keene, Jr., an individual ("Manager"). It is effective on the latest date next to the signatures on the last page. This Agreement is entered into on the basis of the following facts, among others A. City, acting by and through its duly elected Ciry Council, desires to employ Manager as its City Manager subject to the terms and conditions set forth in this Agreement and in the provisions of the Charter of the City of Palo Alto (the "Charter"); B. The Charter provides, among other things, that the City Manager shall be appointed for an indefinite term by a majority vote offue City Council and that he may be removed at the pleasure of the City Council by a two-thirds vote on a reso lution passed for that pUrpose; C. Manager desires to be employed by the City of Palo Alto as its City Manager, subject to the terms and conditions set forth in this Agreement and in the Charter; D. Manager desires a predictable amount of severance notice and severance pay; E. City, mindful of the frequency, administrative disruption, and expense of employment-related litigation, desires to prevent litigation arising from any termination of the employment relationship with Manager; F. City and Manager desire to establish specific terms and conditions relating to compensation and benefits, housing assistance, performance evaluations, and related matters; BASED UPON THE FOREGOING, CITY AND MANAGER AGREE AS FOLLOWS: 1. Employment Start Date. City hereby appoints and employs Manager as City Manager, and Manager hereby accepts the appointment and employment, for an indefmite term that begins on September 2, 2008, provided Manager actually reports for and commences work on that date (the "Employment Start Date"). In the event Manager .. does not actually report for and commence work on September 2, 2008, the Employment Start Date will be the date, if any, as otherwise mutually agreed by the parties. 2. Duties of Manager. Manager shall perform the duties established for the City Manager by 1he Charter, Palo Alto Murlicipal Code, direction of the City Council, or as otherwise provided by law, ordinance, or regulation. 2.1 Full Energy and Skill. Manager shall devote his full energy, skill, ability, and productive time to the performance of Manager's duties. Manager understands that the Charter requires that the City Manager devote his entire work time to the discharge of the duties ofthe office. 2.2 No Conflict. Manager shall not engage in any activity which is actually or potentially in conflict with, inimical to, or which interferes with the performance of Manager's duties. 2.3 Uncompensated Professional Activities. Manager may attend and/or participate in uncompensated professional activities, including but not limited to the activities described in subsections 8.3 and 8.4, provided that Manager's ability to perform the duties described in this Section 2 is not unreasonably compromised or impaired. Manager shall inform the City Council in writing in advance of absences of more than one day related to such activities. 3. Compensation. Manager shall be compensated as provided in this Section 3. 3.1 Initial Compensation. Commencing on and continuing from the Employment Start Date, Manager will receive an initial base annual salary of Two Hundred Forty Thousand and No/lOO Dollars ($240,000.00), prorated and paid on City'S normal paydays. 3.2 Salary Adjustments. Manager shall be entitled to the same percentage increase in his pay as any inflation or similar adjustment that the City Council approves which applies to all Management and Professional Personnel and Council Appointees. Not less than once each year, the City Council shall meet for the express pUlpOse of evaluating the performance of Manager and determining whether to grant him an individual incentive award based on performance. The City Council will act in good faith in determining whether to provide the incentive award, but the ultimate decision in this regard is within the sole discretion of the City Council. The Council may also grant special labor market and/or internal equity adjustments to the Manager. 2 4. Regular Benefits and Allowances. Manager will be eligible for, and shall receive, all regular benefits (e.g., health insurance, PERScontribution paid by City7) and vacation, sick leave, and management leave as are generally provided to Management and Professional Personnel and Council Appointees from time to time by the City Council. 5. Additional Benefits and Allowances. In addition to the benefits specified in section 4, Manager will receive the following additional benefits and allowances to the extent they are not already included in the regular benefits generally provided to Management and Professional Personnel and Council Appointees. 5.1 Transportation Allowance. Manager's duties require that he have available exclusive and unrestricted use of an automobile for business purposes and Manager agrees to have a personal vehicle available for such use. In consideration of this, City agrees to pay to Manager, during the term of this Agreement and in addition to other salary and benefits, a transportation allowance of Six Hundred and NollOO Dollars ($600.00) per month. This transportation allowance will increase by the percentage amount of any increases provided for transportation allowances received by Management and Professional Personnel and Council appointees, rounded to the nearest five dollars ($ 5.00) .. The transportation allowance includes reimbursement for an appropriate allocation of vehicle insurance and all other expenses of vehicle ownership, maintenance and operation. The Manager may also use the Transportation Allowance for alternative means of transportation necessary and useful for the exercise of his duties. The time and manner of payment will be in accord with City's normal procedures. Manager shall be solely responsible for any personal federal or state tax liability arising from this transportation allowance. 5.2 Retirement Contributions. City maintains an Intemal Revenue Code § 401 (a) governmental money purchase retirement plan in which Manager will be an eligible participant. City will make employer monthly contributions as a percent of the prorated maximum contribution permitted by law. Starting in the month Manager becomes eligible to participate in the 40 1 (a) plan, City will make an employer contribution of 50% of the maximum contribution, prorated and paid monthly, Commenci,ng in the month in which Manager completes three (3) years of service with the City, City will make employer contributions of75% of the maximum contribution, prorated and paid monthly. Commencing in the month in which Manager completes five (5) years of service with the City, City will make employer contributions of 100010 of the maximum contribution, prorated and paid monthly. An employer contribution will be paid in the fmal month of employment if Manager' s last day of employment is the last workday of the month. Otherwise, no contribution will be made in the last month of employment. 3 5.2.1 The maximum contribution for purposes of this paragraph includes the legal maximum with cost of living adjustments provided under the Intemal Revenue Code. It is not intended to and does not incorporate increases resulting from future federal legislative or regulatory action. 5.2.2 By way of example, the contribution limit for 2008 is $46,000.00. City will contribute $1,916.67 per month ($46,000.00112 == $3,833.33 * 50% = $1,916.67) for those months Manager remains employed. If the Intemal Revenue Service increases the contribution limit for years after 2008 based on a cost of living adjustment, the new contribution limit will be used as the basis for calculating contributions. After three (3) years of service the City contribution will be $2,875.00 per month plus 75% of cost of living adjustments ($46,000.00 plus COLAI12 = $3,833.33 ... 75% = $2,875.00 plus 75% of COLA). After five (5) years of service, City will pay the entire monthly amountof$3,833.33 plus COLA. 5.2.3 Manager will make any additional contributions required under the plan, if any, and may make additional voluntary contributions, if permitted. 5.2.4 Manager is also eligible to make contributions to the City Intemal Revenue Service Code 457 plan at his discretion, to the maximum extent allowed under the plan document or by law, whichever is less. 5.3 Parking. City shall provide parking at the Civic Center at no cost to Manager. 5.4 Leave Accrual Rate. Manager's tenure and long career in public service has been considered to determine the accrual rate for annual leave, including but not limited to vacation. As a result, Manager's initial vacation accrual rate will be based on an annual accrual of two hundred (200) hqurs. Any other accrual rates that are based on years of service will be applied at the maximum rate. Accruals will begin upon assumption of employment. 5.5 Leave Balance upon Start of Employment. Manager will be credited with one hundred twenty (120) hours of vacation leave and two hundred forty (240) hours of sick leave upon reporting for work and actually starting employment. 6. Relocation and Housing Assistance. City will assist Manager with relocation and the purchase of housing in Palo Alto as provided in this section 6. 6.1 Relocation Expenses. In accordance with City's compensation plan for Management and Professional Personnel and Council Appointees and any related policy, City shall bear the actual and reasonable expenses, not exceed Twenty Five 4 Thousand and Noll 00 DolJars ($25,000), incurred within twelve (12) months of beginning employment to move Manager and his family from his fonner home to Palo Alto. Manager will keep an accurate record of all such expenses and present such record with his request(s) for payment or reimbursement. 6.2 Temporary Housing. City will bear the actual and reasonable monthly rental or lease cost, not to exceed Five Thousand and Noll 00 Dollars ($5,000.00) per month, for temporary housing located within the corporate limits of the City, for a period not to exceed twelve (12) months, while Manager is seeking suitable housing that qualifies for housing assistance provided in this section 6. Manager will keep an accurate record of all such expenses and present such record(s) with his request for payment or reimbursement. City will advance any refundable deposits and will be reimbursed for such deposits by Manager (including interest, if any, paid by the deposit holder) at the time the refund is paid or if the refund is refused by holder, at the time it would otherwise be due. 6.3 Home Purchase and Method of Financing Purchase of Rome. City will assist in purchasing a home for Manager and his family as provided in this .subsection 6.3. 6.3.1 Time of Purchase. To be eligible for assistance under this subsection 6.3, Manager will purchase a home within the corporate limits of the City within a reasonable time after the Employment Start Date (the "Property"). The parties anticipate this will occur within one year but acknowledge that market conditions may make a longer period reasonable. 6.3.2 Manager's Contribution. Manager may contribute his personal funds toward the purchase price of the Property (the "Manager's Contribution"). 6.3.3 City Loan. Should the price of the home exceed Manager's Contribution, if such contribution is made, City will provided to Manager a loan (the "City Loan"), secured by a note and first deed of trust on Manager's tenancy in common interest, for the home purchased by Manager, in an amount as determined by Manager not to exceed FiVe Hundred Thousand and No/IOO Dollars ($500,000.00). The City Loan will be fully amortized over a maximum term of30.years, but the term may be shorter at Manager's request. The loan will be immediately due on sale. The interest on the City Loan will be adjusted annually on July 1 as follows: From the date of execution of the note, the rate will be equal to the lower of 5.5% or the sum of the City's portfolio rate, which is defmed as the armual rate ofretum on investment funds of the City of Palo Alto during the most recent 5 fiscal year, plus one quarter percent (1/4%) as calculated annually by the City's DireCtor of Administrative Services. 6.3.4 City Contribution Toward Purchase Price. In addition to any Manager's Contribution and the City Loan provided to Manager, City will contributed an additional amount, not to exceed One Million Five Hundred Thousand and No/I 00 Dollars ($1,500,000.00) toward the purchase price ofthe Property. The purchase price will include any real estate broker's fee payable by buyer, but does not include closing costs, title insurance and related fees normally attributable to a buyer in Santa Clara County, the reasonable and actual cost of which will be paid by the City. The City contribution provided in this subsection will be made in a ratio of three (3) to one (I), as compared to the total of the Manager's Contribution and the City Loan. Stated differently, the City contribution will be 75% and the combination of Manager's Contribution and the City Loan will be 25% of the purchase price, The City's combination of equity contribution and City loan will notte exceed Two Million and Noll 00 Dollars ($2,000,000). Once the City contribution limit of One Million Five Hundred Thousand and Noll 00 Dollars ($1,500,000.00) is reached, the City contribution share of75% will cease. Any further contributions will be made as Manager's Contribution or, if the City Loan limit has not been exhausted, by City Loan. 6.3.5 Equity Ownership Interests. If City participates in the purchase of the home, the proportional ownership ofthe home will be shown on the deed as the ratio of funds provided by Manager and City toward the purchase. By way of example: a. If the purchase price is Two Million and No/IOO Dollars ($2,000,000.00), Manager may utilize the full City Loan as his 25% contribution, with the City making its 75% contribution, equal to the maximum contribution. Under this scenario, the equity ownership of Manager will be will be 25% ($500,000/$2,000,000 = 25%) and the equity ownership of City in the Property will be 75% ($1,500,000/$2,000,000= 75%). b. Similar to the prior scenario, but with a purchase price of Two Million Five Hundred Thousand and Noll 00 Dollars ($2,500,000.00), Manager's Contribution will be $500,000, in addition to the City Loan and City contribution. Under this revised scenario, the equity ownership of Manager will be 40% ([$500,000+$500,000]/$2,500,000 = 40%) and the equity ownership of City in the Property will be 60% ($1,500,000/$2,500,000 = 60%). 6 · 6.3.6 Eguity Ownership Interests Not A Partnership. City and Manager agreed to share the equity interest in the Property in order to consummate transactions contemplated in this Agreement related to assisting Manager with purchasing a home within Palo Alto city limits. Nothing herein shall be construed as creating a partnership or other joint venture between Manager and the City, it being agreed that they are not partners and did not intend by entering into this Agreement to form a partnership, or otherwise to have the relationship of partners to one another. 6.3.7 Title Held As Tenants~In~Common. The Property will be held by Manager and City as tenants~in-common, with Manager and City owning proportional undivided interests, as determined under subsection 6.3.5, above. Manager will have the exclusive right to 'occupy the Property and will not rent, lease or transfer any interest to a third party without the written consent of City, which may be withheld in City's sole discretion. Neither party may sell its interest in the Property separate from the other and agrees to cooperate in the sale of its interest in the Property, as provided in section 6.8, below. . 6.3.8 Execution of Documents. City and Manager will , cooperate in the preparation and execution of all title documents, notes, deeds of trust, escrow instructions, agreements and other documents reasonably necessary to conform the purchase of the home to the provisions or'this subsection, in a form mutually. determined by Manager and the City Attorney. The deed will reflect the terms and conditions ofthis Agreement. At the option of City, the documents may also include a tenancy in common agreement supplementing the terms of this Agreement and a recorded power of attorney in favor of City to facilitate the sale of Manager's interest under the circumstances provided in section 6.8 in the event Manager is unable or unwilling to cooperate in the sale. 6.4 No additional mortgages or liens. Except liens for taxes, . special assessments, and the fIrst deed of trust referred to above, Manager shall not cause any lien or mortgage to be recorded against the home except as expressly authorized in writing by the City Council. The City Council shall not unreasonably withhold permission for refInancing or equity loans that do not impair City's interest in the home. 6.5 Property Taxes and Insurance. Manager will pay property taxes proportionate to Manager's equity ownership interest in the Property, as determined by subsection 6.3.5 above and City will be responsible for its proportionate share. The equity share of Manager may be provided through the City Loan or Manager's Contribution or both. Manager will pay for all insurance on the home without reimbursement from City, except as provided below. If City contributes to the purchase price of the Property, Manager will obtain, and agrees to continue to maintain in force, comprehensive 7 homeowner's insurance (HO· 3), including earthquake and, if applicable due to location, flood coverage, for as long as City has a security interest or equity share in the home. All such insurance will state the respective interests of the parties and provide that the proceeds of any such insurance shall be paid to the parties as their respective interests appear. City shall provide and/or pay the cost of earthquake and flood insurance. 6.6 Occupancy and Maintenance. Manager will reside at the Property from the time of purchase and initial occupancy and will continue to occupy the Property at all times as his principal residence during the term ofthis Agreement. Manager will maintain the home in good condition and in compliance with all applicable codes. Manager shall be solely responsible for all maintenance and repair costs, including deductibles and repair and restoration of uninsured losses. 6.7 Capital Improvements. Manager may, at his sole expense, make such improvements to the home as he deems beneficial, provided such improvements do not cause the value of the Property to decline. For purposes of this agreement, a capital improvement is the addition of a pennanent structural improvement or restoration of some aspect of the Property that either increases the Property's resale value or increases its useful life. With the approval of City, the actual costof each capital improvement with a cost in excess ofTen Thousand and Noll 00 Dollars ($10,000.00) will be treated as an addition to Manager's Contribution and used to reallocate equity ownership interests at the time of sale, as provided in subsections 6.8 and 6.9, below, in such amount(s) as the parties may mutually agree. City's approval, when sought for a capital improvement that will result in the reallocation of equity ownership interests, must be obtained in writing prior to the initiation of the capital improvement and may be withheld in City's sole and absolute discretion. 6.8 Sale. The sale ofthe home will occur on the happening of one of the following: a. subsections 6.9 and 6.10; At the option of Manager, subject to the provisions of b. The passing of 18 months following the termination of the employment of Manager for any reason, whether voluntary or involuntary; c. At the option of City, upon the occurrence of any default, as defined in any agreement or document related to purchase or holding of the Property, including the purchase and fmancing tenns of this Agreement; d.. Should the Manager pennanently move out of the Property or cease to use the Property as his primary residence; and 8 e. Upon mutual agreement of the parties. Notwithstanding the above, one party may purchase the home by buying the interest of the other as provided in subsection 6.10. 6.9 Proceeds On Sale. Upon sale of the home, the proceeds of sale shall be divided between the parties as follows: a. The costs of sale, including, but not limited to escrow fees, real estate broker's fees, and related expenses shall first be deducted from the gross sales price to reach a net sales price ("Net Sales Price"); b. "Manager's Equity Share" will be equal to his equity ownership percentage, determined by subsection 6.3.5 and, if applicable, subsection 6.7, above, multiplied by the Net Sales Price and "City's Equity Share" will be equal to its equity ownership percentage, determined by subsection 6.3.5 and, if applicable, . subsection 6.7, above, multiplied by the Net Sales Price; c. The outstanding balance of the City Loan, together with any accrued, but unpaid, interest and all other amounts shall be deducted from Manager's Equity Share and paid to City pursuant to the terms of the City Loan, and Manager shall receive the remainder; and d. City shall be paid the City's Equity Share, calculated as set forth in clause (b) above; amounts paid in connection with the City Loan are independent of City's Equity Share and shall not be credited toward City's Equity Share and vice versa. 6.10 One Party's Right to Purchase the Interest of the Other Party. 6.10.1 City Right. If Manager determines to put the home up for sale, either while he is still employed or after his employment is terminated, City shall have the right to purchase Manager's interest rather than have the home sold and the proceeds divided as provided above. In order to value the interests of the parties in the home at that time, the home will be appraised, at City's expense, by a qualified real estate appraiser acceptable to both parties. If the parties are unable to agree on an appraiser, each party may hire and pay for its own appraiser. The value of the home will be the average of the two appraisals. After the value of the home is determined, City may purchase Manager's interest-in the home, the value of which shall be calculated using the formula set forth in subsection 6.9; and 9 6.10.2 Manager's Right. At any time while still employed by the City in good standing, Manager may purchase the home by paying to City its Final Equity Share as calculated under subsection 6.9 and paying any other amounts outstanding, as provided in subsection 6.9 (c) (including the outstanding balance on the loan, interest and other amounts). In order to determine the interests of the parties in the home at the time, the home will be appraised, at City's expense, by a qualified real estate appraiser acceptable to both parties. If the parties are unable to agree on an appraiser, each party may hire and pay fodts own appraiser. The value of the home will bethe . average of the two appraisals. 7. Duration of Eml?loyment. Manager understands and agrees that he has no constitutionally protected property or other interest in his employment as City Manager. He understands and agrees that he works at the will and pleasure of the City Council and that he maybe terminated, or asked to resign at any time, with or without cause, subject only to the requirements of Section 3 of Article IV of the Charter, a copy of which has been provided .to Manager. It is understood that the public hearing accorded Manager upon termination as provided in the referenced section of the Charter is not a hearing in which wi~nesses will be called and examined nor in which Manager may formally contest the reasons for termination. The hearing is solely for the purpose of Manager being able to publicly respond to any reasons given for his termination by the City Council. 7.1 Severance Pay. If Manager is terminated or asked to resign in lieu of termination, he shall receive a cash payment, or payments (without interest) at intervals specified by Manager, equivalent to the sum of his then-current monthly salary multiplied by twelve (12) and the cash value, as reasonably determined by City, of his monthly non-salary benefits multiplied by twelve (12). The monthly non-salary benefits shall be those specified in sections 4 and 5.2. All normal withholdings as required by law shall be made with respect to any amounts paid under this section. 7.2 Non-Payment of Severance Under Certain Conditions. If the termination of Manager is the result of con,viction of a felony, he shall not be paid any severance pay. 8. Payment of Expenses of Employment. City shall pay the following usual and customary employment expenses: 8.1 The cost of any fidelity or other bonds required by law for the City Manager. 10 8.2 The cost to defend and indemnify Manager to the full extent of the law as provided by the California Tort Claims Act (Govennnent Code § 810 et seq.), or otherwise. 8.3 Reasonable dues for Manager's membership in professional organizations associated with the office of City Manager. City will allow Manager reasonable time away from the City to attend the meetings and annual conferences of such organizations and will pay the cost of such attendance in accord with applicable City policies and procedures. The organizations and activities include but are not limited to the International City/County Management Association, League of California Cities, Alliance for Innovation and the Transforming Local Govennnent Conference. 8.4 The cost of attending other conferences or events (i.e. retirement dinners, out of town meetings, etc.) necessary to the proper discharge of his duties. 9. Miscellaneous. 9.1 Notices. Notices given under this Agreement shall be in writing and shall be either: a. Served personally; or b. Delivered by frrst-class United States mail, certified, with postage prepaid and a return receipt requested; or c. Sent by Federal Express, or some equivalent private mail delivery service. Notices shall be deemed received at the earlier of actual receipt or three (3) days following deposit in the United States mail, postage prepaid. Notices shall be directed to the addresses shown below, provided that a party may change such party's address for notice by giving written notice to the other party in accordance with this subsection. . CITY: Attn: Mayor City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Phone: (650) 329-2226 FAX: (650) 328-3631 11 MANAGER: James R. Keene, Jr. c/o 250 Hamilton A venue Palo Alto, CA 94301 Phone: (650) 329·2563 FAX: (650) 325"5025 9.2 Entire AgreementJAmendrnent. This Agreement constitutes the entire understanding and agreement between the parties as to those matters contained in it, and supersedes any and all prior or contemporaneous agreements, representations and understandings ofthe parties. This Agreement may be amended at any time by mutual agreement of the parties, but any such amendment must be in writing, dated, and signed by the parties and attached hereto. 9.3 Attorney's Fees. If any legal action or proceeding is brought to enforce or interpret this Agreement, the prevailing party as determined by the court shall be entitled to recover from the other party all reasonable costs and attorney's fees, including such fees and costs as may be incurred in enforcing any judgment or order entered in any such action. 9.3.1 Alternate Dispute Resolution. Nothing in this subsection shall be read to prevent the parties from agreeing to some alternative method of dispute resolution. If such a method is agreed to, any final detennination shall include an award of attorney's fees and costs by the presiding officer. 9.4 Severability. In the event any portion of this Agreement is declared void or unenforceable, such portion shall be severed from this Agreement and the remaining provisions shall remain in effect, unless the result of such severance would be to substantially alter this Agreement or the obligations ofthe parties, in which case this Agreement shall be immediately tenninated. 9.5 Waiver. Any :fuilure of a party to insist upon strict compliance with any tenn, undertaking, or condition of this Agreement shall not be deemed to be a waiver of such tenn, undertaking, or condition. To be effective, a waiver must be in writing, signed and dated by the parties. 9.6 Employee's Independent Review. Employee acknowledges that he has had the opportunity and has conducted an independent review of the fmancial, tax and legal effect of this Agreement. Employee acknowledges that he has made an independent judgment upon the financial, tax and legal effects of this Agreement and has <not relied upon any representation of City, its officers, agents or employees other than those expressly set forth in this Agreement. 12 , • 9.7 Governing Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Manager and City agree that venue for any dispute shall be in Santa Clara County, California. 9.8 Section Headings. The headings on each of the sections and subsections of this Agreement are for the convenience of the parties only and do not limit or expand the contents of any such section or subsection. Dated: rqJu,;z-y CITY OF PALO ALTO ~ d:r/)e Larry Klein By Mayor Attest Dated: ~-«' .... ~ MANAGER Approved as to Form: 1~ (ff City Attorney /I 13 ATTACHMENT B ORDINANCE NO.xxxx ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 2011 TO PROVIDE APPROPRIATIONS OF $125,000 FROM THE GENERAL FUND BUDGET STABILIZATION RESERVE FOR CAPITAL IMPROVEMENTS TO THE CITY MANAGER'S HOME The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 28, 2010 did adopt a budget for Fiscal Year 2011; and B. In accordance with the City Manager's employment agreement, the City is to provide up to $1,500,000 towards the purchase of a home within the City of Palo Alto. The City will also provide a $500,000 loan to the City Manager with a 30 year term, with an interest rate of 5.5% or the sum of the City's portfolio rate plus one-quarter percent, whichever is lower. The City will share in the home's equity in proportion to the cost of the home and the City's contribution; and C. In March 2010, the City Manager purchased a home at 355 Webster Street, Palo Alto, CA, 94301. The purchase price totaled $1,875,000. The City's equity share is $1,406,250 and City Manager equity share is $468,750. The City Manager's loan totaled $468,750, a 30 year term at the City's portfolio rate plus one-quarter percent. The balance remaining of $125,000 was returned to the Budget Stabilization Reserve; and D. The City Manager's employment agreement also allows for capital improvement to the home, per Section 6.7 of the employment agreement; and E. The City Manager plans a series of house improvements at a total estimated cost of $250,000, and F. Per approval of the City Manager's amended employment agreement on August 2, 2010, the cost sharing for the planned improvements will be made on a dollar for dollar matching basis, with an equal equity contribution made by the City Manager; and G. City Council authorization is needed to amend the Fiscal Year 2011 budget to make an additional appropriation of $125,000 (One Hundred Twenty Five Thousand Dollars) for the City's contribution to costs associated with capital improvements to the City Manager's home located at 355 Webster Street, Palo Alto, CA, 94301. SECTION 2. The sum of $125,000 (One Hundred Twenty Five Thousand Dollars) is hereby appropriated to Building and Building Improvement expenses in the Administrative Services Real Estate department, and the Budget Stabilization Reserve is correspondingly reduced. SECTION 3. The Budget Stabilization Reserve is hereby decreased by the sum of $125,000 (One Hundred Twenty Five Thousand Dollars). As a result of this change the Budget Stabilization Reserve will be reduced from $23,885,611 to $23,760,611. SECTION 4. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance SECTION 5. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTION 6. As provided in Section 2.04.350 of the Palo Alto Municipal Code, this Ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney APPROVED: Mayor City Manager Director Services of Administrative TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DATE: August 2, 2010 REPORT TYPE: Action DEP ARTMENT:ADMINISTRA TIVE SERVICES CMR: 340:10 SUBJECT: Approval of Response to the 2009-2010 Santa Clara County Civil Grand Jury Report "Cities Must Rein In Unsustainable Employee Costs" RECOMMENDATION Staff recommends that Council approve the final response to the 2009-10 Santa Clara County Grand Jury Report "Cities Must Rein In Unsustainable Employee Costs" and authorize the City Manager to sign and send the response to the Grand Jury. BACKGROUND On May 20, 20 I 0, the Civil Grand Jury of Santa Clara County sent the Honorable Patrick Burt, Mayor of the City of Palo Alto a report expressing serious concems about rising and unsustainable employee costs. The report addressed all areas of compensation including wages, pensions, health care, and vacation, holiday and sick leave. The Grand Jury's chief finding was that" ... controlling employee costs is imperative for the ongoing financial health of our cities." On July 19,2010, the Council preliminarily reviewed the Grand Jury findings (CMR:315:10) and provided general input and guidance to staff on responding. DISCUSSION Based on Council input and a careful review of actions taken by the City to date to restrain rising employee costs, responses to the Grand Jury's findings and recommendations have been drafted by staff. The response (Attachment A) agrees with the thrust of the Grand Jury findings and recommendations. There are areas, however, where the City respectfully disagrees with the findings and/or recommendations. The City agrees that employee costs must be brought into alignment with available resources, particularly on a long-term basis. In its negotiations with its unions the City has made it clear that it faces a long-term structural deficit that can only be solved through structural wage and benefit changes, particularly in the areas of health and pension costs. The City faces considerable financial liabilities in these benefit areas and is taking concrete steps to address them. The Grand Jury's recommendations are a valuable source for discussions and solutions. CMR: 340:10 Page 1 of3 'In its responses, staffhas noted that in order to aehieve savings in wages and benefits it must, by law and contracts, negotiate in good faith with its labor unions. Although the City can strive to achieve many of the Grand Jury's recommendation, it must comply with State and local rules governing employer/employee relations, which can limit its ability to implement wage and benefit changes. In addition, there are a variety of ways to achieve savings necessary to meet budget goals and maintain services. Jurisdictions need some flexibility to address their unique labor forces and services. Staff will also include corrections, provide additional information or clarifications on the Palo Alto data included in the Civil Grand Jury's report. For example, the monthly health care premiums comparing 200 I to 20 I 0 will be provided (table 3, page 6). Most Expensive Plan 2001 PERS CARE 20 I 0 Blue Shield Access Employee Only $343.00 $577.33 Employee +1 $686.00 $1,154.66 Employee + Family $892.00 $1,501.06 For the retirement formula table 5, page 9 it should state highest year instead of final year. In table 7, page 13, the days off per year by City needs corrections the floating or personal days should state 2 to 5 days for Management and SEIU and total days off should be from 49 to 64. In addition, here are the revised figures for the grand jury report for estimated median total compensation for public safety: Police, FY2000: $102,771 Police, FY 2010: $171,970 Fire, FY 2000: $107,634 Fire, FY 2010: $169,709 In conclusion, staff requests Council input and final approval of the response to the Grand Jury report. A copy of Penal Code Section 933.05, which provides the guidelines for responses to Grand Jury reports, is attached (Attachment B). A final response from the City of Palo Alto regarding the reforms and changes recommended by the Grand Jury must be delivered by August 30,2010. RESOURCE IMPACT There is no immediate fiscal impact resulting from this report. POLICY IMPLICATIONS This report is consistent with Council policy to maintain a balanced budget and to pursue structural changes in employee wages and benefits. ENVIRONMENTAL REVIEW There is no environmental review required for this report. CMR:340:10 PageZ of3 ATTACHMENTS Attachment A: City of Palo Alto Responses to 2009-2010 Santa Clara County Civil Grand Jury Report "Cities Must Rein In Unsustainable Employee Costs" Attachment B: Penal Code Sootion 933.05 PREPARED BY: APPROVED BY: CITY MANAGER APPROVAL: CMR: 340:10 =~~~ JOSEP Deputy LAL Director, Administrative Services ;;?~lJJ~ t::n-JAMESKEENE V City Manager Page 3 of 3 ATTACHMENT A Response to the 2009-2010 Civil Grand Jury of Santa Clara County Final Report "Cities Must Rein in Unsustainable Employee Costs" SUMMARY The City of Palo Alto agrees with the primary thrust of the Grand Jury's Report that unsustainable employee costs must be aligned with available resources. Moreover, those costs must be considered in light of significant infrastructure needs and the public's expectation of services. As demonstrated by its balanced budgets, minimal use of reserves, Triple A credit rating, and stellar annual outside audits, the City prides itself on responsible financial stewardship and management. It fully intends to maintain these best practices and adjust eosts and revenues as needed. The City agrees with many of the Grand Jury's findings and recommendations and has taken clear concrete steps to address them. In addition, the City intends to pursue medical and pension changes, already achieved with miscellaneous employee groups, in current and future negotiations with its public safety unions. The City does, however, want to state that progress on some recommendations must be viewed within the context of processes that are to a large extent beyond the City's control. For example, the City must abide by contractual obligations of its labor contracts as well as legal requirements to meet and confer and bargain in good faith over matters within the scope of representation. This places real and practical constraints on the City's ability to move forward with changes it may believe necessary, but whieh are subject to negotiation. The City genuinely strives to work in a eollaborative manner with its employee groups to reach agreements that ensure a sustainable financial future and exeellent services to the community. The Grand Jury's findings are valuable and provide confirmation of the direction that the City of Palo Alto and other cities are moving forward to deal with the severe impacts of the recession and the wage and benefit liabilities that have emerged. As evidenced below a good faith effort to address the Grand Jury's issues has been initiated and Vlill continue to be followed in the future. It is important to note many of the Grand Jury recommendations removing benefits were benefits negotiated and granted over an extended period of time. It would be challenging at best to expect negotiations to address all of them in a short period of time. FINDINGS AND RECOMMENDATIONS Finding 1 The costs of total compensation for employees have grown substantially in the past decade and now threaten the cities' fiscal stability. RESPONSE: The City agrees with this finding. The City of Palo Alto's compensation costs, particularly in the area of pension and medical expense, have grown substantially in the past I decade. Through its annual Long Range Financial Forecast (LRFF), the City identifies the "drivers" of future surpluses and deficits. In the most recent 10 year forecast, deficits were projected from FY 2011 through FY 2020. They were driven primarily by falling revenues due to the recession; significantly rising medical premium and retiree medical liability expenses; and pension costs resulting from expensive plans and weak portfolio performance by CaIPERS. Using the Forecast, the City is proactive in developing budget strategies and seeking structural expense changes to erase those deficits Recommendation 1 All of the cities in the County need to implement measures that will control employee costs. As a starting point, each city should determine the percentage of savings required from the total compensation package to reach budget stability for the unions to choose to achieve that percentage goal. RESPONSE: , The recommendation has been implemented. During each budget process for the following fiscal year, the City determines the savings needed to balance its budget and to position itself for future budget stability. Those savings have incorporated reductions to employee compensation. In the 2009-10 Budget, for example, the City: • froze pay for management and SElU for fiscal ycars 2010 and 2011. Police employees voluntarily deferred a contractual pay increase for FY 2010 until FY 2011 • eliminated management's Variable Management Compensation plan (a bonus based on work quality and achievement of stated goals) • eliminated tuition or professional training reimbursement for SEIU members • inereased PERS employee eontribution rates for SETIJ members from 2% to 5.75% • eliminated 2 float days off for SEIU members In addition to the above, the City implemented a two tier retirement plan (2% at 60) for new miscellaneous employees as well as a medical premium cost sharing plan for miscellaneous employees. The City is currently in negotiations with its fire personnel for similar struetural changes in benefits and will pursue this with its police personnel when contract negotiations begin for FY 2011-12. Finding 2 Salary and wage increases do not reflect changes in economic conditions; e.g. even with minimal inflation, yearly COLAs are granted with little bearing on tile actual increase in COb'! of living or market eonditions. RESPONSE: The City respectfully partially agrees and disagrees with the finding Recommendation 2 The City agrees that it should not inerease salaries and wages that are not supported by planned revenue increases. Cities should tie COLA increases to clear indicators and retain the ability to adjust or withhold based on current economic data. This recommendation has been implemented as explained below 2 RESPONSE: As stated in response to finding I, the City did not automatically grant cost of living increases during poor economic conditions. Staff has received direction from Council to tie salary increases to revenue performance and each Fiscal Year, the City determines what it can and cannot afford in its forthcoming budget. This financial view (derived from the LRFF) is incorporated in all labor negotiations. Recent minimal inflation impacts were a factor in freezing miscellaneous employee pay along with the need to balance the budget. The City has implemented salary increase controls when financial conditions warrant and those increases are not automatically driven by any index. In addition, the City does attempt to negotiate salary increases by including language that caps increases based on the most current Bay area CPI percentage. It is important to note that in multi-year labor contracts (which bond rating agencies look upon favorably thereby reducing debt expense), the City cannot adjust pay increases based on inflation or market conditions. In addition, there can be job classifications or skills where demand exceeds supply and cities need discretion to provide competitive wages e.g., electric linepersons, which may not correlate with inflation changes. Flexibility in the area of wages is important to maintain operations. To the extent implementing this finding would limit its flexibility to consider such operational factors, the City disagrees. Finding 3 Step increases are arbitrary and do not adequately represent an employee's added value to a city. Combined with COLAs, new employees' wages increase quickly and are not necessarily reflective of improved knowledge and skills. Recommendation 3 Cities should negotiate step progressions fi'om the current three and a half years to seven years. Employees should not receive COLA increases while in step progression. RESPONSE: The City agrees with the tenor of the recommendation in that excessive pay increases should be eliminated but disagrees with a seven year step progression. The concept of steps is that an employee's skill level and value in the job increases as they are in the position. But that learning and rising value reaches a plateau after a number of years. Palo Alto has a five step progression for rank and file, fire and police personnel. The step system allows the City to maintain equitable pay scales among its employees for comparable work and performance. The current 4.5 year progression from step I to step 5 appears reasonable in that it offers incentives to progress over an extended period of time. The City will, however, monitor overall pay increases carefully to make sure they can be supported by available resources. The City takes its fiduciary responsibility most seriously and has demonstrated this by balancing its budget each year, minimizing use of its General Fund reserve, and its Triple A credit rating. At the same time, to provide the best services to its citizens it seeks highly qualified and capable public servants. Attracting and maintaining such staff requires a careful balance between prudent financial practices and maintaining a capable and dedicated work force. Having step increases allows the City to hire people at pay rates based on their level of experience, to provide incentives for development and to recognize if employee performance meets work standards. 3 Finding 4 Medical insurance costs for active employees are growing year after year ai rates that exceed most cities' revenue growth, while the employee contribution to medical care is minimal. RESPONSE: The City agrees with this finding. The City views Findings 4 and 5 as the most serious issues it must address in order to achieve long-term financial stability. By calculating the present value of current retirement and retiree medical commitments the City can gauge the magnitude of its liabilities and the struetural changes necessary to align costs with available resources. Medical premium costs have accelerated at a pace that significantly exceeded revenue growth and inflation. In addition, the implementation of GASB 45 has made public agencies acutely aware of the post retirement medical liabilities. As background to the City's effort to control medical expenses, several years ago it eliminated the availability of PERS highest cost plan, PERS Care, to employees. In addition, it increased the vesting period required to earn full medical coverage for retirement. These were the first steps taken to decrease this benefit cost. Recommendation 4 Cities should negotiate with employees to assume some of these increased costs for their medical benefits. To contain medical costs cities should consider the following: A. Split monthly premiums between the city and the employee and increase the employee's share, if already cost splitting, and remove any employee eaps. RESPONSE: The City agrces with employees sharing medical premium costs and has implemented with some labor groups. In FY 20 I 0, the City created and included in management and general classified employee agreements a plan for sharing medical premium costs. The City could not reach agreement and had to impose the medical cost-share program with the general classified employee unit. This plan is to take effect in January 2011 unless a different cost sharing plan can be negotiated with City bargaining groups prior to that date. The plan is for employees to share 50% of cost premium increases up to a maximum of 5% in any single year. The cost sharing will continue until such time as the employee share represents 10% of total premium costs. The City is committed to pursuing a similar plan with its public safety unions as well. Although the City is still discussing medical cost sharing options, removal of the cap must be negotiated. Making changes in a unionized environment is subject to the meet and confer process based on bargaining in good faith. This means that incremental change is a reality. Should pressures on the City budget increase or increase dramatically, the City can and will revisit additional cost sharing arrangements. The City of Palo Alto has removed the most expensive health care provider for current and future retirees (2007). By increasing the vesting period from 5 to 20 years for retiree medical benefits (2004), future retirees must contribute towards the health premium cost unless they meet the 20 year requirement. 4 B. Establish reasonable co-pays for doctors' visits, prescription drugs, and in-patient and out-patient hospital care. RESPONSE: Not implemented or applicable. Palo Alto is part of the CALPERS Public Employees Medical and Health Care Act (PEHMCA) medical insurance program. It cannot unilaterally determine co-pay, deductibles or other plan benefits as those are established by the CALPERS Board. C. Prohibit an employee from being covered by both city-provided medical benefits and as a dependent of another city employee. RESPONSE: The City has a financial incentive program in place to promote this goal and it has been successful in curbing medical costs. The City would have to negotiate changes to this program and cannot unilaterally prohibit an employee from dual coverage. D. Reduce cash-in-lieu payments. RESPONSE: The City has not implemented to date. Assuming the cash-in-lieu payments are for incenting staff to not have dual coverage, the City has found the incentive program successful in reducing costs. While the City considered and evaluated a change to this program in FY 20 I 0 SEIU negotiations, the current program produces effective cost savings. Because the incentive is part of labor agreements, the City is not in a position, at this time, to change the current program. If long-term financial pressures continue, however, this is an area where cost reductions could be considered after additional analysis. E. Introduce a new lower premium, high-deductible medical plan. RESPONSE: The City has partially implemented this recommendation over time, but is limited as a PERS plan member in the plan changes it can make. Palo Alto moved in 1992 from being self-insured to PEHMCA to lower its medical costs. As part of PERS, the City cannot unilaterally determine co-pay, deductibles or other plan benefits. At this time, the City is not researching other medical plans since it is concentrating its efforts on having employees share in medical costs. The City is concemed by the recent, overall 11 % cost increase in a preliminary PERs rate sheet for 2011 and will make its views known to PERS. Over time, the City may pursue other health options. Finding 5 Pension formula changes instituted in the past decade, stock market losses, the aging "baby boomer" work force, and the growing unfunded pension and OPEB liability a\1 contribute to making retiree pension and health care costs the most problematic and unsustainable expense the cities are facing. The city contribution to pension plans and OPEBs far exceeds the employee contribution. RESPONSE: Agree. 5 Recommendation Sa Cities should: 1. Renegotiate and make provisions for increasing the employees' contribution for current pension plans. RESPONSE: As stated under Recommendation 1, the City has implemented and negotiated a higher contribution from SEIU members to the employee's share of pension plan costs. The share of the 8% employee contribution has risen from 2% to 5.75%. This increase began in FY 2010. Managers currently pay 2%; Fire employees pay 9% (firefighters were recently given a 9% salary increase, however, which they use to pay the 9% employee contribution. In effect, the City is paying the full employee share); and Police employees do not pay any contribution toward their 9% employee share. Again, to achieve this goal, the City must engage in the process of good faith negotiations with its labor unions. During upcoming negotiations with public safety, contributions to pension plans will be negotiated. 2. Renegotiate to stop paying the employees' contribution amount to pension plans. RESPONSE: The City has taken steps to increase employee's contributions (recent negotiation with SEIU raised contribution as cited above) and will continue to take such steps as financial conditions warrant. Progress toward this goal must be viewed in the context ofthe good faith negotiations process required by law. 3. Renegotiate to implement a contribution amount for employees to OPEB; this contribution should provide for a reasonable split of costs between a city and the employee for retiree medical and dental benefits. RESPONSE: Please see response to Finding 4, Recommendation 4A. In implementing a medical cost sharing plan for management and SEIU, the City included current employees and those employees retiring after January 1,2011 (This plan would not affect current retirees). As a part of the cost share program, the City will be contributing an amount equal to the employee pOition of cost-share to the retiree medical trust. Through informal discussions, Public Safety employees are aware of the City's desire to negotiate a similar plan for their union agreements. We are currently negotiating with the fire units and will begin negotiations with the police union and swom police management prior to the beginning of FY 2012. The City does not provide dental or vision benefits to retirees. Recommendation 5b Cities should thoroughly investigate reverting to prior pension formulas that were less costly. Recommendation 5c RESPONSE: Partially agree and disagree To provide a meaningful, long-term solution, the cities should negotiate agreements to: 6 I. Institute a two-tier system for pension and retiree health care for new hires. RESPONSE: The City has instituted a two-tier retirement system for new management and SElU hires. The current retirement plan for these groups is 2.7% at 55. For new miscellaneous employees hired after July 17,20 I 0, the retirement plan is 2% at 60. The City will negotiate for a two-tier plan for public safely persolmel in current and upcoming negotiations. The current plan is 3% at 50. 2. Increase the retirement age for 50 to 55 to 60 or 65. RESPONSE: For new miscellaneous employees the retirement age has moved from 55 to 60 and the City will negotiate for higher retirement ages for new public safety employees. 3. Calculate pensions on the last three to five years of salary. RESPONSE: The City's eurrent retirement plans are based on the single highest year of pay during the last three years. This practice was maintained in the new two-tier retirement plan for miscellaneous employees. The City has proposed a three year formula to calculate pensions to the fire union during current negotiations, but this is subject to further discussion. While the City agrees with methodologies to curb retirement costs, there are a variety of ways to achieve this goal and it is carefully weighing each option. 4. Replace current post-employment health care plans with health savings plans. RESPONSE: Not considering implementation at this time. The City has moved in 20 I 0 to have employees share in the cost of OPEB costs and does not believe further change is necessary at this time. Current efforts ares an important first step that could lead to further savings and sharing of cost in the future. With few details on the current health care legislation, it is believed premature to consider health savings plans. Once the new federal legislation is understood, the City can investigate health savings plan within its broader effort to contain post-employment health costs. Parenthetically, the City of Palo Alto is one of the few cites nationwide to have partially funded its retiree health care liability. It deposited approximately $32 million in a PERS trust to fund the liability. Finding 6 Public sector employees are granted a generous number of holidays, personal days, vacation days and sick leave annually. Rules and limits on accrual vary by city and union, but vacation days and sick leave can be accumulated and converted to eash or calculated into the pension benefit within those limits. RESPONSE: The City agrees with this finding. 7 Recommendation 6a Cities should renegotiate with the bargaining units to I) reduee vaeation time; 2) reduce the number of holidays and/or personal days; 3) cap sick leave and eliminate the practice of converting accumulated sick leave to cash or adding into their years of serviee for inclusion in their retirement benefit. RESPONSE: The City has implemented steps to contain fiscal impaets from non-productive days. In terms imposed on SEIU in FY 20 10, 2 floating holidays were eliminated. SEIU has agreed to extend this !'eduetion into FY 20 II. Since 1983, Palo Alto has implemented caps on sick and vacation leavc accruals. Also, it does not allow for sick leave to be cashed out or to be part of the years of service in pension calculations. Further limitations on the total number of days off will need to be part of the good faith negotiation process going forward. Recommendation 6b Cities should negotiate to substitute paid days off for unpaid days instead of imposing furloughs. For example, reduee paid holidays to major holidays only, consistent with private industry; and convert minor holidays to unpaid. Therefore, the public is not impacted by fewer services caused by furloughs, and the city saves the employee cost. RESPONSE: Palo Alto has not used furloughs as part of its budget balancing solutions in the past five years. Instead, the City has changed the way delivers services by contracting out and reducing administrative support. Since 2009 the City has reduced 60.5 full-time equivalent fully benefited positions rather than using furloughs as a solution to reduce employee costs. If the City considers furloughs, it will negotiate for converting paid holidays to unpaid. Finding 7 Cities traditionally determine their eompensation packages by surveying the wages and benefits of other publie sector employees in the same geographic area. There is major resistanee to eomparing themselves or mirroring trends with the private sector. This has allowed wages and benefits to become artificially high and out of sync with market trends. RESPONSE: The City respectfully partially agrees and disagrees with the finding Within the City's labor agreements there are specific jurisdictions within the region to which both parties (City and union) have agreed to compare wages. These benchmarks are important in that they compare like positions in terms of skills and compensation. There are some City positions such as those in public safety that are not comparable to thc private sector. Comparison with other employers, public 01' private, is used in unique circumstances or where specific job classification comparisons are not available such as in the case of the City's Utilities Department positions in which we attempt to use P.O.&E. benchmark data. These comparisons are reviewed from time to time in negotiations and could be changed as part of the negotiation process. For example, in the Fire Memorandum of Agreement, the City is obligated to benchmark specific cities 8 determined through arbitration to be appropriate matches to the City of Palo Alto Fire Department. Recommendation 7a Cities should research competitive hiring praetices and alter the approach to determine fair wages and benefits for each city by using public and private sector data. RESPONSE: The City partially agrees. Palo Alto does a salary survey of specific jurisdiction before each labor negotiation to determine fair compensation and potential "market" adjustments. It has not utilized private sector wage data to date and may consider doing so in the future. Using such data would be helpful and would need to be discussed within the context of the bargaining process. Although recent surveys indicate that private sector benefits are below those in the public sector and the City agrees that publie employee costs must be curbed, it should be noted that private sector wages, bonuses and stock options far exceeded those in the public arena at one point in time. Recommendation 7b Cities should renegotiate salaries and wages using valid market comparisons and not only the current wage index. Cities should utilize more market-oriented compensation practices so that salaries can adjust as competition for labor changes. Cities should reduce entry-level compensation for positions for which there are many qualified applicants. RESPONSE: For each negotiation the City makes market comparisons with the cities that are delineated in the labor contracts. Palo Alto does not use any specific wage index to determine salary increases nor is one specified in labor contracts. It is assumed that the supply and demand for labor in the market does affect each cities compensation results. The recent scarcity of applicants for policc officer positions, for example, ll11fortunately drove wages higher, but this was in response to the market. The recommendation, however, is ll11derstood and the City will study and consider it prior to bargaining processes. Finding 8 All cities perform certain core functions to mn smoothly and provide services to their residents. To reduce employee costs and streamline operations, the cities are in various stages of contracting services to private industry or partnering with other cities, special districts or the COll11ty to deliver services. RESPONSE: The City agrees with this finding Recommendation Sa Cities should explore outsourcing some fll11ctions and services to private industry. Cities should discuss the prospect with cities that are successfully doing this to determine best practices and 9 areas for success. Cities should develop contracts with measUfable objectives, performance goals, and timelines. RESPONSE: The City implemented contracting out services in many areas. The following functions have been contra('ied out to the private sector to save costs: These include, for example: landscaping of parks and City facilities; tree trimming and litie clearing; and street and sidewalk repair. In July 2010 the Utility billing process and janitorial services have been contracted out. In the Fall of2010, the City will likely contract out the maintenance of its golf course. The City does, however, want to maintain a high level of service to its customers so it considers each contracting out opportunity carefully in terms of the balance between cost savings and service. Recommendation 8b Cities should create partnerships with other cities, special districts and/or the County for services, such as payroll, human resources, animal control, police and fire. Cities should investigate sharing the cost of new information technology systems. RESPONSE: Implemented in many areas, the City has established partnerships with other cities for the provision of wastewater treatment and animal services. Palo Alto provides dispatching and fire services to Stanford University. It has a collaborative and cost sharing relationship with the Palo Alto Unified School District for the maintenance of school athletic playing fields that both the schools and general community use for sporting activities. The City operates a Regional Water Quality Control Plant whose members include Mountain View, Los Altos, East Palo Alto, and Stanford University. It operates an animal shelter that serves Mountain View, Los Altos, and Los Altos Hills. The City has a joint partnership with the cities of Sunnyvale and Mountain View for the provision of solid waste and recycling. Finally, the City provides fire and dispatching services to Stanford University. In all of these instances cost savings are realized by participating entities as fixed costs are shared and reduced and resources are optimized for the benefit of all. The City Managers from Palo Alto, Mountain View, and Los Altos have agreed to meet to discuss further opportunities for sharing public safety equipment and services, such as consolidated dispatch. This discussion is in the early stages, but there is growing awareness of the need to reduee costs through regional cooperation. Opportunities for partnerships that can reduce the number of employees and eosts are approached on a case by case basis and are subject to the meet and confer process with affected employee groups. Finding 9 Cities can gain operational efficiencies and effeetiveness with lower employee costs by making sure they are staffed with the conect numbers of people in the appropriate job classification in all departments and work groups. 10 RESPONSE: Agree. For the past several years and always during eeonomie downturns, the City has evaluated eaeh vaeant position to determine whether it is absolutely neeessary and whether its funetions ean be redistributed to other employees or eontracted out. Cross training is a top priority of City departments so that key functions are backed up during illness or vacation. , Recommendation 9 Cities should analyze the functions performed by all job classifications and make adjustments in the work force. Consolidate functions within the same group or a similar group. Reassign appropriate work to lower paid job classifications. Eliminate unnecessary functions. RESPONSE: Agree. The City has been conducting a management classification study with the objective of reducing the large number of job classifications. By collapsing these classifications, additional flexibility for covering employee work functions will be realized. The City is close to completion of the study and then will perform an economic analysis and presentation to council in 2011. Implementation may take 3 years or longer depending on the results of the analysis. In addition, during the last fIscal year, the City "froze" positions as they became vacant and executive staff used this opportunity to evaluate which positions could be proposed for elimination during the FY 2011 budget process. Between the management study and restructuring around vacancies, the City is eliminating uuneeessary functions and finding OPPOliunities to cover essential functions. Reassigning work to lower paid job classifications is a valuable idea, but it is subject to union agreements and the "meet and confer" process. Since the City of Palo Alto owns seven different types of Utilities, it will continue to have unique classifications that usually don't exist in other agencies. This will require further analysis. Finding 10 The San Jose City Auditor identifIed 88 positions currently being performed by public safety employees that can be performed by civilian employees at lower costs. The safety employees could be moved to positions that require their expertise and training. The auditor estimated this could be accomplished in less than 90 days and save approximately $5 million armually. RESPONSE: This finding is not applicable to the City of Palo Alto. Recommendation 10 San Jose should negotiate this suggested transfer with the San Jose Police Officers' Association and set realistic timeframes to move these safety positions to civilian positions. RESPONSE: This recommendation is not applicable to the City of Palo Alto. The City, however, continually explores opportunities in this area. 11 Finding 11 In many cities, the contract negotiation process is completed by placing the negotiated collective bargaining agreements on the consent calendar for approval, which is acted on quickly at the start of council meetings by a single motion and vote of the council. The City of Palo Alto agrees with this finding. Recommendation 11 Cities should consider holding well-publicized public hearings about the cities' goals of negotiations before negotiations begin, and again at the end of negotiations to report to citizens clearly what changes have been made in contracts. RESPONSE: The City has held nuroerous information meetings with the public, Couneil and employees about the financial stresses it faces and the upcoming budget process. Solutions to solving budget deficits are proposed and discussed at these meetings. Embedded in the proposals are targets for labor cost reductions which are shared publicly. As an example, in FY 2010, a target of around $3 million in labor cost reductions was proposed to Council and the public to balance the budget. It is the City Manager's responsibility to then propose a strategy for obtaining those reductions in closed sessions with Council. Naturally, that strategy changes with Council input and as negotiations evolve. Council is kept informed on cvery major point or change in negotiations. During the City's negotiations with SEIU in FY 2010, the City established a publie Web site that explained the City's proposals. The results of negotiations are sent to Council 'in a City Managcr Report and in public session, the Council must approve of a final contract. For example, on August 2, 2010, a Memorandum of Agreement with SEIU will be presented at a publie hearing. Cmmci! Members, as well as the public, have the opportunity to make comments on the negotiated terms. Finding 12 Current contracts were negotiated in good faith by representatives of the cities and the bargaining units; they were approved by the city councils. Promises made to employees were made by elected officials, past and present. Responsibility for formulating and approving solutions to restore the cities' financial stability resides squarely with our elected officials. The economic downtum has placed additional pressure on the situation. RESPONSE: Agree Recommendation 1211 City council members and mayors should become better informed about the fiscal realities in their cities, long-term costs and commitments, and be eognizant of potential issues in labor agreements, 12 RESPONSE: City has implemented. Palo Alto's Council Members are especially well- informed about the City's financial condition and important issues in labor agreements. Palo Alto has a Finance Committee comprised of 4 out of the 9 Council Members to discuss fiscal issues prior to items being presented to the full Cmmci!. Meetings and reports on budget issues occur throughout the year. This includcs a presentation on the LRFF; quarterly, midyear, and year-end reports on the City's financial condition; preparatory information and staff plans for addressing budget issues prior to Finance Committee and full Council budget deliberations. In calendar year 2009 staff and Council Members met in 11 closed sessions to discuss negotiations on labor contracts. In calendar year 20 I 0 to-date, there have already been 11 closed session meetings on union contracts. Recommendation 12b City councils and mayors should direct city administrators to (re)negotiate collective bargaining agreements that reverse the escalation of employee costs through concessions, cost sharing, and a second tier for new employees . . RESPONSE: This recommendation has been implemented and will continue to be followed to ensure a sustainable budget. As stated in Finding 5, the City imposed terms and conditions on SEHJ that has. contained costs and initiated a second retirement tier for new employees. This new tier will apply to management employees as well. Furthermore, the City will purslle two tier retirement plans with its public safety employees as well as concessions to reduce medical and other costs. Recommendation 12c City councils and mayors should meet with the bargaining units to clearly outline the cities' financial health and show how employee costs are impacting the budget. RESPONSE: Implemented annually during budget process. Palo Alto has a Council-City Manager (CM) form of govermnent whereby the Council directs the CM to implement its policy goals. During the past several years, the City'S CMs have held outreach meetings with employees and labor groups to explain the City's financial condition and the rationale for proposed expense reductions. Power Point presentations replete with revenue and expense trend analyses are provided. The CM has met with union employees and the public to explain City finances prior to the budget process and negotiations. Recommendation 12d City councils and mayors should inform citizens of their plans for controlling unsustainable employee costs and remove politics from the equation. RESPONSE: Implemented. All budget meetings are held in publie sessions. The City Manager's proposed budget is reviewed by the Finance Committee (subset of full Council) in public and public comment is always solicited. During these meetings, Council Members can 13 discuss any proposal or mechanism for controlling costs including reductions in force and lowering labor costs through wage and benefit reductions. In addition, the City Manager and Dircctor of Administrative Services (includes Finance), held a plethora of community meetings on the proposals to balance the FY 20 II budget. Finding 13 Binding arbitration is not open to the public and results in an adversarial process between the city and employee groups. Binding arbitration limits the ability of city leaders to craft solutions that work for the city's budget. The process has resulted in wage and benefit decisions that have been greater that the growth in basic revenue sources. RESPONSE: In Palo Alto, all guidance on labor negotiations is provided by the Council with staff implementing Council policy direction. As representatives of the public and through numerous mediums (Council and neighborhood meetings, e-mail, letters, newspapers, blogs), the Council is informed of public sentiment on labor negotiations. The City of Palo Alto is bound by a section in its Charter requiring binding arbitration for public safety negotiations that reach impasse. Also, it must follow all legal, regulatory and contractual requirements regarding labor negotiations. There has, however, been recent discussion by the Council about submitting a ballot measure to voters on repeal the Charter's binding arbitration requirement. Further analysis and discussion is likely to be required by Council in the future. Recommendation 13a San Jose City Council should make binding arbitration open to the public. RESPONSE: This recommendation is not applicable to the City of Palo Alto, however, please refer to the response under Finding 13. Recommendation 13b San Jose City Council should prepare a ballot measure asking voters to repeal Section 1111 of the City Charter that addresses binding arbitration. RESPONSE: This recommendation is not applicable to the City of Palo Alto. 14 W AIS Document Retrieval ATTACHMENT B 933.05. (a) For purposes of subdivision (b) of Section 933, as to each grand jury findingl the responding person or entity shall indicate one of the followlng: (1) The respondent agrees with the finding. (2) The respondent disagrees wholly or partially with the finding, in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefor. (b) For purposes of subdivision (b) of Section 933, as to each grand jury recommendation, the responding person or entity shall report one of the following actions: (1) The recommendation has been implemented, with a summary regarding the implemented action. (2) The recommendation has not yet been implemented, but will be implemented in the future, with a timeframe for implementation. (3) The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study, and a timefrarne for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of the public agency when applicable. This timeframe shall not exceed six months from the date of publication of the grand jury report. (4) The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation therefor. (c) However, if a finding or recommendation of the grand jury addresses budgetary or personnel matters of a county agency or department headed by an elected officer, both the agency or department head and the board of supervisors shall respond if requested by the grand jury, but the response of the board of supervisors shall address only those budgetary or personnel matters over which it has some decisionmaking authority. The response of the elected agency or department head shall address all aspects of the findings or recommendations affecting his or her agency or department. (d) A grand jury may request a subject person or entity to corne before the grand jury for the purpose of reading and discussing the findings of the grand jury report that relates to that person or entity in order to verify the accuracy of the findings prior to their release. (e) During an investigation, the grand jury shall meet with the subject of that investigation regarding the investigation, unless the court, either on its own determination or upon request of the foreperson of the grand jury, determines that such a meeting would be detrimental. (f) A grand jury shall provide to the affected agency a copy of the portion of the grand jury report relating to that person or entity two working days prior to its public release and after the approval of the presiding judge. No officer, agency, department, or governing body of a public agency shall disclose any contents of the report prior to the public release of the final report. Page 1 of 1 http://www.leginfo.ca.gov/cgi-binlwaisgate?W AISdocID=26735115621 + 1 +0+0& W AISac... 7/27/2010 .. ~ TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE: AUGUST 2, 2010 CMR: 339:10 REPORT TYPE: ACTION ITEM SUBJECT: Adoption of Two Resolutions: (1) Amending Section 1401 of the Merit System Rules and Regulations to Adopt a New Memorandum of Agreement with SEIU Local 521 for Classified Employees and (2) Adopting a Compensation Plan for SEIU Classified Personnel and Rescinding Resolution Nos. 8657, 8658, 8727, 8800, 8833, 8848, 8908, 8909, 8916, 8951, 8994 and 9047 RECOMMENDATION Staff recommends the following to Council: 1. Adopt the attached resolution amending Section 1401 of the Merit System Rules and Regulations to adopt a new Memorandum of Agreement between the City of Palo Alto and SEIU Local 521 effective July 1, 2010 through June 30, 2011 (12 months). 2. Adopt the attached resolution adopting a new Compensation Plan for SEIU Classified Personnel, effective v.ith the pay period including July 1,2010 through June 30, 2011. BACKGROUND The City's Memorandum of Agreement (MOA) v.ith SEIU Loca1521 expired on June 30, 2009. The parties began negotiations for a successor agreement in May 2009. After five months of bargaining, involving approximately 26 formal meetings, the parties were not able to bridge the significant gap between perspectives, and reached impasse. On October 26, 2009 the City Council implemented terms from the City's Last, Best and Final Offer pursuant to Govermnent Code Section 3505.4 which provides the City with the ability to unilaterally implement tenus following good faith negotiations and impasse. In effect, the Imposed Terms reduced overall compensation for employees in this unit by approximately 3.9%, established a medical cost sharing plan, and created a second tier 2%@60 retirement formula for new hires. CMR: 339:10 Page lof5 Following implementation of the Imposed Terms, the City was required to meet and confer with the Union prior to adoption of the FY 2011 budget. The City Manager met with new SEIU Chapter leadership informally beginning in January 2010 in the spirit of good labor relations and to discuss ways to reach an agreement on a successor MOA. The parties initiated formal negotiations in May 2010. After a focused and productive two months, the parties reached tentative agreement on a successor MOA. The SETU membership ratified the tentative agreement on June 24, 2010 and this agreement is now before Council for adoption. DISCUSSION The City's main focus in the 2009 negotiations, and continuing into 2010 with informal . and formal discussions, was the need for both short and long term structural budget change, particularly in the areas of compensation, pension and medical care costs to the City. The new tentative agreement for a successor MOA consists of the existing terms and conditions of the expired MOA and the terms and conditions implemented by the Council in October 2009. The key elements of the agreement include: I. Term: 1 year, from July 1,2010 through June 30, 2011 2. California Public Employees' Retirement System (CalPERS) Pension Formula Change Pursuant to the Imposed Terms, the second tier retirement formula of 2% @ 60 for all new hires has been adopted by City Council and took effect July 17,2010. Current employees will maintain the 2.7% @ 55 plan. 3. Employee Pension Contribution Change The Imposed Terms required employees to contribute an additional 3.75%, or a total of 5.75% annualized. SEIU agreed to continue the employee contribution to pension costs at 5.75% for the term of this MOA. 4. Healthcwe Cost Containment Effective on January I, 20 II, active employees and employees retiring on or after that date will begin contributing toward their medical premiums. The contribution model' defmed through the negotiation process is an even split of the annual increase in medical premium costs, with a cap for the employee share of 5% premium increase per year. Once the employee contribution reaches 10% of total premium cost, the employee contribution will continue for future years at 10% of total premium cost with the City picking up the remaining 90% of total premium cost. The City will contribute to its retiree insurance trust (the PERS retiree medical trust or its successor) CMR: 339:10 Page 2 of5 an amount not less than the amount of premiums paid by active employees in the bargaining unit in the respective calendar year as a result of the sharing of the first 10% of each premium increase as described above. The imposed terms applied this formula to employees retiring after June 30, 2009. The MOA delays the effective date for retiring employees to January 1, 2011. 5. Tuition Reimbursement The Imposed Terms eliminated this benefit and it remains eliminated in the term of this MOA. 6. Floating Holidays The Imposed Terms eliminated two (2) Floating Holidays permanently. 7. Dismissal of all Unfair Practice Charges and Grievances Related to 2009 Negotiations The parties agree to dismiss all five (5) Unfair Practice Charges pending against each other before the Public Employment Relations Board (PERB) and the Union agrees to withdraw two (2) related grievances. 8. Updated Market Study for several classifications in the Utilities Department The Human Resources Department will conduct an updated market comparability study for the classifications in the Lineperson job family which include: • Lineperson/Cablesplicer Apprentice • Lineperson/Cablesplicer • Lineperson/Cablesplicer Lead • Compliance Tech • Compliance Tech Lead The positions in the Lineperson job family are difficult to hire and retain due to the specialized skills and knowledge required to perform this hazardous Utilities work. While the City has created an apprentice program to develop the skills in-house, the City and the Union both desire to ensure this job family is compensated appropriately. Other changes include minor revisions to Article IV -Stewards and the section on Realignments and Survey Data Base in Article VII Pay Rates and Practices. RESOURCE IMPACT As stated, the new MOA will carry forward terms imposed in the City's last, best and fmal CMR: 339:10 Page 3 of5 offer of October 26, 2009 into FY 2011. In CMR:414:09, staff reported anticipated savings for FY 2010, reflected below, and a new column reflects savings expected in this fiscal year. Annualized 5.75% Employee Contribution to pension: Elimination of Tuition and Training Benefit: Elimination of Two (2) Floating Holidays: Total Savings Medical Cost-Share eff 1/1/2011 2%@60PensionFormulaeff7117/20l0 FY 2010 $1,599,500 $ 607,500 $ 340.000 $ 2,547,000 FY 2011 $1,400,000 $ 582,000 $ 326.000 $2,308,000 $ 173,000 $ 231,000 Pension Cost Containment It should be noted that savings in FY 2010 from employee contributions to pension costs of $1.6 million cited above was based on 617 SEIU FTE. Staff estimates annual, ongoing savings of $1.4 million in FY 2011 based on 582 SEIU FTE paying 5.75% of employee pension contribution. Although implementation of the new two-tier retirement plan is effective July 17, 20 I 0, PERS indicates that the City will not realize savings for FY 2011 until FY 2013. This is a consequence of a two year lag in the PERS allocation of costs. Based on a number of assumptions, staff estimates an eventual credit to Palo Alto of $23 1,000 for FY 2011. Medical Cost Containment The City will also realize savings from the implementation of SEIU contributions to medical premium costs effective January 1, 2011. Staff estimates a 6-month savings of $173,000 in FY 2011. POLICY IMPLICATIONS This recommendation is consistent with existing City policies and City Council direction to implement structural savings to address short-term and long-term budget challenges. ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act. CMR: 339:10 Page 4 of5 ATTACHMENTS . A. Resolution Amending Chapter 14 of the Merit System Rules and Regulations Regarding a Memorandum of Agreement for Represented Classified Employees (SEIU General Unit). B. Resolution Adopting a Compensation Plan for Represented Classified Employees (SEIU General Unit) C. Redlined Memorandum Of Agreement for SEIU General Unit D. Resolution No. 8994 and CMR 414:09 Adoption of Resolution Imposing the City's Last, Best and Final Offer to SEIU Local 521 Pursuant to Government Code Section . 3505.4 PREPARED BY: Sandra T.R. Blanch, Assistant Director, Human Resources JosephSaccio, Deputy Director, Administrative Services Department Marcie G. Scott, Labor Relations Administrator DEPARTMENT HEAD: Russell Carlsen DYrf0rofHurnanR~ . CITYMANAGERAPPROV~~~ W, ~amesKeene City Manager CMR:339:1O Page 5 of5 ATTACHMENT "A" ***NOT YET APPROVED*** RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 1401 OF THE MERIT SYS1EM RULES AND REGULATIONS REGARDING THE MEMORANDUM OF AGREEMENT BETWEhN 11lE CITY OF PALO ALTO At"lD LOCAL 521, SEIU The Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Section 1401 of the Merit System Rules and Regulations is hereby amended to read as follows: "1401. Memorandum of agreement incorporated by reference. That certain memorandum of agreement by and between the City of Palo Alto and Local 521 , SEIU, consisting of a Preamble and Articles I through XXVII and Appendices A through I, attached thereto and incorporated therein, for a term commencing July I, 20 I 0, and expiring June 30, 20 II, is hereby incorporated into these Merit System Rules and Regulations by reference as though fully set forth herein. Said memorandum, as amended, shall apply to all employees in classifications represented by said Local 521, SEIU, except where specifically provided otherwise herein." In the case of conflict with this chapter and any other provisions ofthe Merit System Rules and Regulations, this chapter will prevail over such other provisions as to employees represented by said Loca1521." SECTION 2. The changes provided for in this resolution shall not affect any right established or accrued, or any offense or act committed, or any penalty of forfeiture incurred, or any prosecution, suit, or proceeding pending or any judgment rendered prior to the effective date of this resolution. 1/ II /1 /1 II 1/ 100723 'h 82613&7 1 ***NOT YET APPROVED*** SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: . ATTEST: APPROVED: City Clerk fvIayor APPROVED AS TO FORM: City Manager Senior Asst. City Attorney Director of Administrative Services Director of Human Resources 100726 sI> 8261387 2 . , PREAMBLE- 2010-2011 MEMORANDUM OF AGREEMENT City of Palo Alto and Local 521, SEIU, CTW This Memorandum of Agreement (hereinafter "MOA"is entered into by the City of Palo Alto (hereinafter referred to as the "City") and Local 521 Service Employees International Union, CTW (hereinafter rererred to as the "Union"). For the purposes of this MOA "employee" shall mean an employee assigned to a classification within the SEW General Employee bargaining unit. This MOA is pursuant and subject to Sections 3500-3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit Rules and Regulations. ARTICLE I -RECOGNITION Section 1-ReCOgnitiOIL Pursuant to Sections 3500 -3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations, the City recognizes the Union as the exclusive represantative of a representation unit consisting of all regular full and part-time employees in the classifications listed in Appendix A attached hereto. This unit shall for purposes of identification be titled the SEW General Employees bargaining unit (hereinafter "General Unit). Section 2 -Protection of Unit. No supervisor will perform the work of an employee in the General Unit provided that there is an employee available who regularly performs such work. This does not preclude a supervisor from performing work of a minor nature or during bona fide emergencies or on a standby status when willing and qualified unit . employees do not live within a reasonable response time of their work 10catioIL Supervisory personnel shall be called out to perform unscheduled work only when SElU General unit employees are unavatlable to perform such work or in cases of bona fide emergencies as defmed in Article vrn, Section 2. In cases of bona fide emergencies, SEIU General unit employees shall be called out to complete the necessary work after the immediate emergency situation has been reasonably contained. ARTICLE n -NO DISCRIMINATION , Section 1 -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. Section 2-Right to Join the Union. The City and the Union agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. ARTICLE Ill-U~lON SEC'GRITY Page lof64 i -i I Section 1-Notice. When a person is hired in any of the covered job classifications, the City shall notify that person that the Union is the recognized bargaining representative for the employee and give the employee a Cll1TIlI1t copy of the Memorandum of Agreement. When a group employee orientation is held for new employees,of the bargaining unit, a union representative may make a presentation to such bargaining unit employees for the purpose of explaining matters of representation. The presentation shall not exceed 15 miniltes. Section 2 -Agency Shop. (a) Every employee in the bargaining unit covered by this'Memorandum of Agreement shall: (1) remain a member in good standing of the Union; or (2) pay to the Union a monthly service fee, to be set by the union in accordance with applicable law, in an amount not to exceed the standard initiation fee, periodic dues, and generai assessments of the organization; or, (3) in the case of an employee who certifies that he/she is a member of a recognized religion, body or sect which has historically held conscientious objection to joining or financially supporting public employee organizations, pay it charity fee, equal to the service fee, to a non-religious, non-labor charitable fimd exempt from taxation under Section 501 (c)(3) of the Internal Revenue Code, chosen from one of the following three charitable organizations agreed to by the City and the Union (or any successor organization(s) agreed to by the City and the Union): United W!ty of California Community Health Charities Envuonmental Federation of California Union members may declare their intention to terminate Union membership by registered letter, return receipt requested, to the Duector of Human Resources and the Union only during the 30-day period between 60 and 90 days before expiration of the MOA. (b) Employees who are newly hired into or who join the bargaining unit shail elect one of the above payment deduction options by completing and submitting the . Employee Election form within thirty (30) calendar days of being hired into a classification covered by this MOA. (c) To qualify for deduction of the Cbarity Fee, the employee must cartify to the Union and City that he/she is a member of a bona fide religious body or sect that has historically held conscientious objection to joining or financially supporting public employee organizations. The employee is required to submit to the City and the Union a notarized letter signed by an official of the bona fide religion, body, or sect certifying that person's membership. Upon request, the City shall provide to the Page 2 0164 ;. Union a report of payments made by employees that qualifY for the Charity Fee option in this subsection. (d) The deductions in this Section shall not apply during any period vvhere an employee is in an unpaid status. (e) Involuntary Service Fee Deduction Process: The City shall deduct a service fee from the salary of each bargaining unit member vvho has not authorized a dues deduction, service fee deduction or charity fee in writing Vlithin the time stated in this Section, above. The Union certifies that it has consulted with knowledgeable legal counsel aDd has thereby determined thet this involuntary service fee geduction process satisfies all constitutional and statutory requirements. (f) Agency shop may be rescinded only in accordance with the provision of state law. (g) 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 sttorney'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 the Agency Shop . Arrangement. (h) Sign-up forms for deduction of union dues, service fees and charity fees shall be provided by the Union and approved by the City. Section 3 -Documentation. The City shall supply the Union with: (a) a monthly electronic file of the names, member/fee payer designation, addresses, classifications, monthly base pay, pay period number, Committee on Political Education (COPE) listed separately and last four digits of the Social Security number of all bargaining unit employees except those who file written notice with the Human Resources Department objecting to release of addresses, in which case information will be transmitted without address; and (b) a list of bargaining unit new hires, terminations and retirements which occurred during the previous rnonth. The Union shall supply the City, and as applicable, the employees, with: (a) documentation required by Government Code Section 3502.5 (f). Section 4 -Payroll Deduction. The City shall deduct Union membership dues, service fees, charity fees, and any other mutually agreed upon payroll deduction, which may Page 3 of64 I include voluntary COPE check-off, from the bi-weekly pay of bargaining unit employees. The clues/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 Section2(e), above. The dues deduction form shall include a check box for those employees who wish the Union to receive notification in the event of unsatisfactory work, conduct, or disciplinary action taken pursuant to Article XX. City shall remit the deducted dues or fees to the Union as soon as possible after deduction. Section 5 -Bulletin Boards and Departmental Mail The Union shall have access to. inter" office mail, existing bulletin boards in unit employee work areas, and existing Union-paid telephone answering device for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission. The Union may send email messages only for the purposes set forth above. The IT Department will maintain the SEW list and keep it current. The Union access to email is bssed on the following conditions: 1) emaHs to the SEIU list VIIill be copied to the Human Res(lUTCe Director at distribution; 2) emalls to the SEW 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 emalls may be sent by the.SEIU Chapter Secretary. Section 6 -Access to Union Representatives. Representatives of the Unioilare 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 notilY the Human Resources Department Office prior to entering the work location. Section 7 -Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during lunch periods or other non-working hours. Such meeting places will be made available in conformity with City's regulations and subject to the limitations of prior commitment. Section 8 -Notification to the Union. (a) General. 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. (b) Change in City's Financial Situation. ShOuld the City's financial situation deteriorate and the possibility of layoffs resnlt, the City Manager will give prior notice to and consult with the Union prior to recommending any layoffs to the City CounciL Page 4of64 : • (c) Vacancies and Temporary PersonneL The City agrees to notify SElD Loca1521 in writing when any irregular, temporary, hourly, provisional, special or extra help employee who consistently performs work typical of the SEIU Local 521 bargaining unit exceeds 1,000 hours of work within a I8-month period. The City agrees to notify SEIU Loca1521 in writing when any position covered by this agreement is left vacant for more than 60 days. Through a separate meet and confer process, the City and Union will develop a way to convert long term, ongoing temporary-hourly positions to regular status. The City and Union will meet and confer regarding wages, benefits and terms and conditions of work. S'!Ction 9 -Union Logo. All materials and documents prodl!ced on Itek and metal plates, by the City print and reproduction shop, shall carry the Union label on the inside of covers or title pages in accordance with customary printing trades practices. Section 10 -Public Notice. The City shall make available to the Union in a timely manner copies of all City Council meeting agendas, minutes and schedule of meetings. These materials may be picked up at the ,City Clerk's Office during business hours . Section 11-Use of Agency Re.ports. 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 clas~ifications. Section 12 -Job Postings. The City shall incorporate the requirements of this Article when publicizing job announcements for classifications covered by this Memorandum of Agreement. Section 13 -Contracting Out. The City through the labor management process will kept 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 Qut of a bargaining unit employee work. The City will notify the Union in writing when contracting out work which has been traditionally performed by bargaining unit workers, where such contracting out is expected to replace a laid off bargaIning unit position that has been eliminated within ninety (90) days prior to the date of the planned contract work. When feasible, the City will provide such notice prior to the beginning date of the planned contract work. The City will meet with the Union upon request to discuss altematives. This provision does not apply tc 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. Page 5 of 64 J I I I ~ I .• j ARTICLE IV -STEWARDS Section 1 -Union Officers. The Union agrees to notify the Director of Human Resources of those individuals designated as Union officers and stewards who receive and investigate grievances and represent employees. before Management. Alternates tnay be designated to perform steward functions during the absences or tmavailability of the steward. Section 2 -Number of Stewards. The number of stewards designated by the Union at a given time shall not exceed thirty-five (35). Section 3 -Release Time. It is agreed that, as long as there is prior notice as specified below to the Supervisor with no disruption of work, stewards shall be allowed reasonable release time away from their. work duties, without loss of pay, to represent a unit employee or employees on grievances or tnatters within the scope of representation, including: . (a) A meeting of the steward and an employee, or employees ofiliat unit related to a grievance. (b) A meeting with Management. (c) Investigation and preparation of grievances. Grievances may be transmitted on City time. All steward release time shall be reported on time cards. Section 4 -Advance Notification Before Leaving W Qlk Location. The Union agrees that the steward shall give no less than one (1) full business day advance notification to msther supervisor before leaving the work location, except in those cases involving an unforeseeable circumstance that requires immediate union representation where advance notice cannot be given or when the relevant supervisor otherwise allows less notice. A supervisor may deny such a request for release from duty if the steward is needed to ensure real time delivery of services that the steward provides for the public or intemal City customers and another employeewho nonnally provides suchservices is not available on a straight time basis to relieve the steward, or in a bona fide emergency. If such denial occurs, the union may request the release of another of its designated stewards to perform the representation duties involved. Such request shall be processed in accordance with the terms set forth in this section except that the requirement for a full business day advance notice to the replacement representative's supervisor shall not apply. Nothing herein shall preclude the City from rescheduling a meeting it has scheduled, to facilitate the attendance of a steward who has requested release if, in the City's judgment, such change can be undertaken without undermining the objectives of the meeting. Section 5 -Release Time. Three Union officers, who are City employees, shall be allowed a reasonable amount of release time off for purposes of meeting and conferring Page 60f64 I i I -, ) or llleeting and consulting on matters within the scope of representation. All such time. will be reported on timecards. Section 6 " Designated Union SPace. Union stewards may utilize space in assigned desks for storage of Union materials. In the event stewards are not assigned desks the City will provide locker or other mutually agreeable space for storage of Union materials. Section 7-Union Officers and Release Time. Six union officers, who are City employees shall be allowed' a reasonable amount of release time off for monthly L8.bor/Management Meetings. ARTICLE V -REDUCTION IN FORCE Section 1-Attritj.Q:1l,. In the event of reductions in force, they sh!\ll be accomplished wherever possible through attrition. Section 2 -AdvanceNotice. When the City detennines that layof'fi; 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 oflayoff. Section 3 -Order of Layoff. If the work force is reduced within a department, division, or office for reasons of change in duties or organization, abolition of position, shortage of work or fur\ds, 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 perfonning remaining work. Length of service for the purpose of this article will be . based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Length of service ties will be determined by lot in a method agreeable to bOth parties. Employees laid off due to the above reasons will be given written notice at least thirty days prior to the reduction in force. A copy of such notice will be given to the Union. Such employees shall be offered priority employment rights to regular positions which are requisitioned and for which the employees are qualified for a period beginning with notification and ending sixty (60) days following the reduction in force. Employees transferred or reclassified under this section will be assigned to the ' step in the new classification salary range closest to the employee's salary range at the time of reclassification. Employees laid off pursuant to this section shall receive the balance of all regular City compensation owed and severance pay equal to one month's salary at the employee's final rate of pay at termination. This does not include any amounts payable under Article V, Section 6, or PERS contribution refunds, if any. Section 4 • SenioritvlBumping Rights. Employees identified for layoff who have seniority (bumping) rights to their current or previously held classifications within the representation unit must declare their intention to exercise these rights in writing and submit to the Human Resources Department within seven (7) working days after written Page 1of64 , I I , l notification oflayoff, otherwise bumping rights will automatically tenninate. Bumping may occur within the representation unit, only to the least senior incumbent of the current or a previously held classification. To bump, the employee must be fully qualified, trained, and perfonn all work in the. For purposes of this section of the Agreement, the tenn "working days" shall mean Mondays through Fridays, exclusive of holidays. Section 5 -Re-Employment List. The names of employees laid off or who through . bumping changed classification in acCordance with the provisions of this Article shall be entered upon a re-employment list in seniority order. The employee with the greatest seniority on the re-employment list, including those who exercised their bumping rights, shall be offered reinstatement first Such notice of reinstatement shall be in writing with a copy to the employee, Union and Chapter Chair. If a laid off employee waives reinstatement or fails to respond within ten (10) working days of receipt of the notice, the employee shall be removed from the reemployment list. The person with the highest seniority including those who exercised their bumping rights on a re-employment list for a particular classification when a vacancy exists in that classification shall be offered the appointment. Names shall be .carried on a re-employment list for a period of two (2) years from the date of separation from City services or change of classification through bumping. Upon re-employment within the two-year period, the employee's hire date of record at the time of layoff will be reinstated. Section 6 -Sick Leave Balances. Employees laid off pursuant to Section 2 who are reinstated to a regular position within sixty (60) days shall retain the sick leave balance they had at the time of layoff, unless they have received a sick leave payoff in accordance with Article XII. Section 7 -Hourly Emuloyees Performing Duties. No representation unit employee will be laid offorremain on a re-employment list when hourly employees are performing substantially all the duties of the classification of the employee receiving a layoff notice or on are-employment list. This provision shall not be applied to hourly positions which have been traditionally used for seasonal and part-time work. ARTICLE VI -PERSONNEL ACTIONS Section 1 -Probation. Each new regular or part-time employee shall serve a probationsry period of six (6) months, (twelve (12) months for the classifications of Public Safety Dispatcher, Chief Public Safety Dispatcher, Animal Control Officer, Communications Tech, Chief Communications Tech, Community Services Officer, Court Liaison Officer, Crime Analyst, Police Records Specialist, Property Evidence Technician, and Veterinarian Tech), commencing with the first day ofhislher employment. The probationary period shall be regarded as a part of the testing process and shall he utilized for closely observing the employee's work, for securing the effective adjustment of a new employee to hislher position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. At least one written perfurmance appreis,u will be given each probationa,ry employee on or hefore expiration of the probationary period. Normally, this appraisal will be given at the end of the third Page 8 of 64 i , .j month. In the event of tennination 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 Evalnations. Personnel evaluations will be given to employees as scheduled by Management. Personnel evaluations are not appealable through the grievance procedure but, in the event of disagreement over content, the employee may request a review of the evaluation with the next higher level of Management, in consultation with the Human Resources Department For purposes of this review, the employee may be represented by the Union. Decisions regarding evaluation appeal shall be made in writing within ten (10) working days following the review meeting. Section 3 -Personnel Files. Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Union representatives. An employee or the Union shall be allowed, upon reasonable request, copies of materials in an employee's personnel flle relating to a grievance. Records of disciplinary actions, including references in a performance evaluation, shall be removed from a personnel file upon written request by the employee or in the normal process of file review after a period of three years, or sooner as mutually agreed by Management and the employee. Section 4 -Release ofInformation. The City will only release information to creditors or other persons upon prior identification of the inquirer and acceptable reasons for the inquiry. Information then given from personnel files is limited to verification of employment, length of employment and verification and disclosure of salary range information. Release of more specific information may be authorized by the employee. Section 5 -Promotional Opportunities. (a) Posting. Promotional opportunities for eiessifications within the representation unit will be posted for at least ten (I 0) working days (Monday through Friday) prior to selection. Outside recruitment may be used for promotional openings and may begin at the time of posting, or any time thereafter. If, however, there are three or more qualified internal candidates within the department where the vacancy occurs, and those candidates successfully complete the selection process, outside candidates will not be considered. . Page 9 of 64 l · (b) Internal Candidate Eligibility. All no.n-probatio.nary representatio.n unit emplo.yees are eligible to apply fo.r Po.sted promo.tional o.Pportunities, except that Management may waive this requirement for all pro.batio.nary emplo.yees within the department where the promo.tio.nal o.pportunity occurs. (c) Selection. The selectio.n procedure fo.r each promotio.nal opening will be determined and administered by the Hwnan Resources Department in consultation with the requisitioning department. Selection procedure andjo.b description information wiil be available at the Human Resources Office at the time of posting. Efforts will be made to standardize tests and procedures where standardization is feasible and appropriate. Any tests used shall be reasOItlfbly predictive of success in the classification, and tests not be biased with respect to race, sex, sexual orientation, religion, creed, political affiliation, color, national origin, ancestry, or age. Selection procedures may include any o.r all of the following phases: (1) APJ.?lication. Both inside and o.utside candidates must 90mplete a City o.f Palo. Alto application fo.rm specified by the Hnrilan Resources Department. Applications must be submitted to the Human Resources Office. (2) Screening. Applicatio.ns will be screenea by the Human Resources Department to ascertain whether candidates meet minimum requirements as o.utlined in the job description. Internal candidates deemed no.t to meetminimwn requirements may submit additional qualification info.rmatio.n writing within three working days of no.tification gf requirement deficiency. (3) Performance Testing. Performance tests, such as typing, machinery or vehicle operation, skills demonstration, physical agility, etc., will be qualifYing. Pass-fail points will bc announced in advance for qualifying tests. Ifrequested in writing prior to the test, performance test may be witnessed by Union steward. (4) Written Tests. Written achievement or aptitude tests will be qualifying. Pass-fail points will be announced in advance for qualifying tests. (5) Interviews, Appraisals. Interviews may be conducted individually or by interview boards and will be qualifying. Interview boards shall be composed of qualified and unbiased people. Where interview boards are used, Management will include at least one bargaining unit employee on each board. If individual interview or an interview board is used, a majority of the individuals or board members must recorrunend a candidate in order fo.r the candidate to qualify for appointment. . Performance appraisals written by candidates' supervisors may be used as indicated in the selection procedure. (d) Recorrunended Candidates. Candidates who successfully complete all phases of the selectio.n procedure wili be recorrunended to the IfPpointing authority. Page 10 of64 ; I I i J ! i " .. j I . (e) Seniority. Seniority, for purposes of this Article, will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Seniority ties will be determined in favor· of the employee with the lowest employee number last four digits. Exceptions to this subsection may be established by mutual agreement on a departmental or divisional basis. Such exceptions are listed in Appendix G. (f) Appointment. The appointing authority will make appointment~ from among those recommended candidates who are most qualified as determined by objective review of selection procedure results and background rnsterials. Where appointments are made from only internal candidateS who, are equally qualified as detennined by objective review of selection procedure resnlts and past performance, seniority will be the detennining factor in promotional appointments. (g) Violations. Any violation of this Article may be appealed to the Human Resources Director in Step III of the grievance procedure . Section 6 -Rights. Unit employees applying for a vacant equal or lower paying position shall have the same right~ as unit employees applying for a promotion. . Section 7 -AI1I1rentice Positions. (a) The City shall establish apprentice positions wherever feasible. Length of apprenticeship, type of training, and pay levels shall be by mutual agreement. Where possible, apprentice positions will underfill regular positions so that incumbents may autornstically progress to thec1assification for which they are training upon successful completion of apprenticeship. The City will meet and confer with the Union before adding any new apprenticeship programs during the term of this agreement. All apprenticeship programs are listed in Appendix B. Section 8 -Rotation. In assigning employees to regular or special shifts. teansfer, standby, overtime, or vacation selection, ability to perform the work, length of service andlor equitable rotation shall determine the assiguments. In accordallce with this provision, more deflnitive rules rnsy be arranged by mutual agreement of the Union and individ~ City departments. ARTICLE vn -PAY RATES AND PRACTICES Section 1. Salaty. The base salary rates and ranges for job classifications covered by this bargaining unit are as set forth in Appendix A attached herete. Section 2 -Step Increases. Merit advancements from the first salary step to the second salary step shall be granted at six-month intervals and between second and subsequent steps at one-year intervals, if the affected employee has demonstrated continued improvement and efficient and effective service. For the purpose of determining step time requirements, time will commence on the first day of the month coinciding with or following entrance onto a salary step. Step Pagen 0(64 I .~ , increases shall be effective on the first day of the payroll period in which the time requirements have been met. Section 3 -Working Out of Classification. The term "working out of classification" is defined as a Management authorized full-time assigmnent to a budgeted 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: (a) Employees appointed to an "out of classification" will receive acting pay within the range of the higher classification beginning the first day of the assignment and shall be paid for all hours worked in the higher classification provided employee works a . minimum offour (4) hours. Where out-of-class appointments last fur more than 90 days, and whenever feasible, out-of-class appointment will be rotated among qualified interested employees in the work group. Employees will receive 5% premium pay for all assigned out of claSs pay for work within SElU Classifications with the exception of lead assignments where. the out of class pay will result in a 7% premium pay. Out-of-classification provisions do not apply to work assignments performed in cormection with specific predetermined apprenticeship or training programs, or declared conditions of public periJ andlor disaster. Section 4 -Classification Changes. (a) During the course of this agreement, the Union and affected employees shaH be notified in advance of any contemplated changes in classification description, wage . range or steps. Such changes shall be subject to the meet and confer process. Such meet and confer process shall be concluded within no more than thirty (30) days following delivery of the City's notice to the Union. If the Union and the City cannot reach agreement on the appropriate pay level from a job so reclassified, the Union may, within ten (10) City business days following the conclusion of the meet and confer process described 'above by delivery of written notice to the Human Resources Director, refer the dispute over the proposed wage range or steps to arbitration at Step N of the Grievance Procedure set forth at Article XIX of this Memorandum of Agreement. Section 5-ReclassifLCation Requests. (a) An employee or hislher representative may request in writing a re-evaluation of . hislher job based on significant permanent changes in job content or significant discrepancies between job content and classification description. The request must be in writing, contain justification and may be made only on an annual basis during the period of September 10 through October 10. A statement by management that a job reevaluation request will be submitted with the departmental budget does not relieve an employee from the responsibility of submitting his/her own request during this period. The Human Resources Director or his or her designee will initially respond to such requests within ninety (90) calendar days by notice to the employee and the Page 1Z of64 union; however, this timeline may be extended if necessary. Such response shall include any reclassification to a different classification or changes in description that the City believes are warranted and any related changes in applicable pay range or steps. If meetings are held, the employee may request representation. If a reclassification is approved and results in an increase in salary, it shall be retroactive to the date the Employee or Union fIled the request for the reclassification. (b) Iffue employee or Union disagrees with the accuracy of the description of duties resulting from the study conducted pursuant to subsection (a) of this Section or with the wage range or steps assigned by the City as a result of the study, the employee or Union may, within ten (10) City business days of delivery of notice of such determination, appeal such decision under step IV of Article XIX, Grievance Procedure. (c) In a dispute under Section 4(a) or section 5(b) above, the arbitrator shall render his or . . her decision on the appropriate wage range or steps within twenty-one (21) days after the initial hearing datt)o The same time line will be observed for disputes over the accuracy of the revised classification description. The parties will notifY the arbitrator of this deadline at the time ofthc arbitrator's selection. In reaching a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator shall base his or her award on the factors traditionally taken into accoont in the establishment of compensation. When deciding a dispute over the accuracy of the revised classification description under section 5(b) above, the arbitrator shall identify the modifications of the pre-existing classification necessary to accurately reflect the permanent changes, if any, that have been implemented. Upon receipt of the arbitrator's award, the City shall implement the revised classification and wage range or steps as provided in the award except as provided under subsection 5( c) ofthis section below. Not withstanding an arbitrator's award pursuant to any appeal process, the City retains the right to forego implementing the changes and the proposed changes shall revert to the status quo as it existed before those changes in duties occurred or were proposed. (d) An employee may submit a request for reclassification for the same classification no more than once every twenty-four (24) months. Section 6 -Advance of Vacation Pay. Vacation pay shall be made available in advance of regular payday, provided that employee requests such advance in writing to the Finance Department at least two weeks prior to hislher vacation date. The employee's supervisor must verify vacation date on the request. Section 7 -Assignment to a Lead Position. All vacancies in lead positions shall be filled in accordance with Article VI, Section 5. The pay range for the lead position shall be seven percent above the pay step of the highest paid employee on the crew. Departmental exceptions for filling lead positions on a rotational basis for training and development purposes may be, arranged by mutual agreement of the Union and individual City departments. Current exceptions are listed in Appendix C. Page 13 of 64 , -.., , , I Section 8 -Realignments and Survey Data Base. (a) Management and the Union have agreed to a compensation survey data base structure which identifies specific benchmark classifications for job families, classifications within the job families of each benchmark classification, survey agencies and survey classification matches. Survey Cities include: San Mateo Santa Clara Alameda Berkeley Daly City Fremont Hayward Mountain View . Redwood City San Jose S, San Francisco , SUIlllyvale , If, in the opinion of the Human Resources Director (or designee), the employer list will not permit the production of a survey report that includes data from at least four (4) employers that employ employees in a classification comparable to the classification surveyed by the City, the Human Resources Director ( or designee) will attempt to ' identifY the other employers in the relevant recruitment area that employ workers in a comparable classification so that data from at least five (5) surveyed employers will be included in the study, if feasible. Such employer may include any public or private employer. The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers, The City will update the survey datshase and send the Union a copy six weeks before expiration of this agreement. This survey will be considered in connection with special adjustment proposals in successor agreement negotiations. By agreeing to a survey database, neither Union nor Management is under obligation to propose or agree to special adjustments. Within ninety (90) days after the ratification and signing of this Memorandum of Agreement by the Parties hereto, the City will conduct a compensation Survey for the following classifications and report the results to the Union: LinepersonlCablesplicer-Apprentice LinepersonlCablesplicer LinepersonlCablesplicer-Lead Compliance Tech Compliance Tech-Lead ARTICLE VIII -HotJRS OF WORK, OVERTIME, PREMIUM PAY Section 1-Work Week and Work Day. The standard workday for regular 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, nine hours to be worked within a maximum of ten hours for one day and eight hours to be worked within a maximum of ten hours for one day, with the work week scheduled to begin so that forty Page 14 of 64 -! hours are worked within each seven days of the fourteen-day period (9/80 plan:, with fo.rty-hour work weeks), or any other schedule that results in a 4O-hour work week, or fits within the parameters of an FLSA 2080 Plan. 'The "9i80 plan" may not be used in any application that requires entitlement to FLSA overtime for working the regular work week. With the exception of the "9/80 plan" as described above and the 4/11 Dispatcher Plan, the standard work week shall be forty hours to be worked within five consecutive days. Additional exceptions to the above are listed in Appendix D. The Union shall be notified of any further exceptions to this section in accordance with Article III, Section 8. The City and the Union agree that the availability of a1ternate!flexiblework schedules is a valuable benefit in that they promote job satisfaction while also reducing traffic congestion and air pollution. During the term of this agreement, employees, subject to the conditions of their job assignment, may propose an alternate work schedule as listed under this Section. Such proposals must be made to the department head through the immediate'supervisor. Serious considerstion will be given to the feasibility and productivity of such proposals, however Management retains the right to determine scheduling needs. Section 2 -Overtime Work. (a) Overtime work for alI unit employees shaII be defIned as any time worked beyond the standard workday or beyond the standard work week. Emergency overtime is defined as unplimned overtime work arising out of situations involving real loss of service or property or personal danger. Emergency overtime does not include: (i) overtime work resulting from personnel replacement for purposes of maintaining scheduled staffing; (ii) overtime work which is planned in advance; (iii) overtime work resulting from being held over for up to four hours to finish work performed during the regular shift. (b) Compansation to employees working overtime will be in the form of additional pay at the rate of one and one-half times. Two times regular rate will be paid for billable customer convenience overtime and emergency overtime as defined in subsection (a) above) the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one-half hours for each hour of overtime worked, subject to the limitations of applicable state and federal laws. In the event compensatory time off is used as the method of compensating for Overtime, the time off will be taken prior to the end of the quarter following the quarter in which the overtime has been worked. In the event the employee is denied this provision, he/she will be compensated in pay for such time at the appropriate rate specified by these sections. Or at the employee's option, the earned compensatory time will be added to the employee's vacation balance. Page 15 of64 J I. . , ; j (c) All time fot which pay is received shall count as houts actually worked for the computation of regular overtime pay; howevet, non-productive time will not be included in computation of any additional FLSA premiums . (d) When an employee is required to work 6 or more hours of overtime (either emergency or pre-arranged) during the 16 hour petiod immediately preceding the beginning of the employee's regular shift on a workday, the etnployee shall be entitled to an eight- hour rest period before returning to work. If the rest period overlaps into the second half of the work day, the etnployee may be given (with supervisor approval) the remaining time off (up to a maximum on hours) at the straight time rate of pay. Any portion of the reSt period faUing within the employee's work shift will be consideted as hours worked and compensated at the straight time rate. (e) If non-emergency overtime is canceled without at least 40 clock hours notice, the City shall pay the affected employees two (2) hours' pay at time and one-half. . (i).Employees working overtime who are too fatigued to continue or return. to work, for safety reasons will be released from duty without compensation. Se(j.ion 3 -Work Shifts. All employees shall be assigned to work shifts with scheduled starting and quitting .times. Should conditions necessitate a change in starting and quitting times, the Union will be notified ten (10) working days in advance and p=itted to discuss such changes with the City. This, howevet, shall not preclude the City's right to effect schedule changes dictated by opetational necessity. lbis section does not apply to overtime scheduling. Section 4· City-Paid Meals. (a) Emergency overtime meals. For purposes of this section, emetgency ovettime is defined as unplanned overtime arising out of situations involving real loss of service or property or personal danger. The City agrees to reimburse for meals in the amount of $10 fur breakfast, $15 fur lunch, and $20 for dinner and will provide meals in the following etnergency overtime situations: (1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR (2) When an etnployee is held over on duty. so that hislhet overtime assignment extends two hours after shift end, and thereafter at .intervals of five hours, but not more than six hours, until the continuous overtime assigument ends. OR, (3) When an employee is called out two hours or more before a regularly scheduled day shift and works the regularly scheduled shift, helshe will be entitled to Page 16 of64 " .1 i breakfast and lunch. Lunches will be consumed on employee's own time. No in- lieu pay will be nmde for meals not taken. This sub-section does not apply if already covered in Section 4( a)(l) above. (4) When recalled two hours or less after the end of a regular shift, uiUess assigned to standby. (b) Non-emergency overtime meals. The City will provide meals for personnel assigned to non-emergency overtime work where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. (c) With regard to (a) and (b) above, the City agrees to reimburse fur meals in the amount of$1O for breakfast, $15 for lunch, and $20 for dinner. Where possible, the City will arrange purchase orders at mutually agreeable restaurants. The time necessarily taken to consume a meal provided under this section shall be considered as time worked to a maximum of one hour, ex:cept as noted in (a)9). (d) With regard to (a) and (b) above, in the event an employee is to be provided a meal or meals pursuant to this section and such meal(s) are not provided due to working conditions, the employee shall have the option of receiv'.ng for each meal not provided an additional one hour of overtime compensation in lieu of such meal. This hour will not be considered as time worked or part ofthe rest period, but will be applied to qualifY for the rest period. (e) Emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in an emergency overtime situation involving real or potential loss of service or personal danger. (1) When an employee is called back and is on duty for a period of three consecutive oours, and thereafter at intervals of five hours, but not more than six: hours, until the continuous overtime assignment ends. (2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. (3) When an employee is called out two hours or more before a regularly scheduled shift. The employee will be entitled to two meals, the .second meal will be consumed on the employee's own time. No in-lieu pay will be made for meals not taken. (4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. Page 11 of 64 ! i I . ! j I (f) Non-emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in non-emergency situations where the assignment extends more than two hours after the regular or overtime shift end and at . intervals of five hours thereafter. If the City is unable to provide a meal, the City agrees to reimburse for meals in the amount oUI 0 for breakfast, $15 for lunch, and $20 for dinner. This policy only applies when an employee is held over, either vohrlitary or mandated, on duty beyond a scheduled regular or overtime shift. Section 5 -Break Periods. All employees shall be granted a break period or coffee break limited to 15 minutes during each four hours of work. Departments may make reasonable rules concerning break period scheduling. Break periods not taken shallbe waived. Section 6-Clean-Up Time. All employees whose work causes their person or clothing to become soiled shall be provided with reasonable time before lunch and at shift end for wash-up purposes. Section 7 -Standby Pay, Call-Out Pay. (a) Standby Compensation. Employees performing standby duty shall be compensated at the daily rates established below: Monday through Friday $50 Saturday, Sunday, Holidays $73 (b) Minimum Call-Out Pay_ Employees not otherwise excluded from receiving overtime pay who are called out to perform work shall be compensated for at least two hours' pay from the time of the call-out for each occurrence at the appropriate overtime rate. The two-hour minimum does not apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two-hour minimum will apply. Section 8 -Night Shift Premium. Night shift premium of $1.44 per hour shall be paid to employees for work performed betWeen 6:00 p.m. an4 8:00 am. This premium shall not apply to an employee whose schedule does not qualifY for shift differential who requests an earlier scheduled start time that would otherwise qUalifY the employee for the premium. A minimum of two hours must be worked between 6 p.m. and 8:00 a.m. to qUalifY for the premium. Employees who regularly work night shifts shall receive appropriate night shift premiums, relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation. Night shift premium does not apply for overtime situations unless overtime is approved to replace an employee who would have . otherwise received a night shift premium. Section 9 -Bilingual Premium. $35 per pay period shall be paid to a bilingual employee whose abilities have been determined by the Human Resource Director as qualifYing to fill positions requiring bilingual speaking andlor writing ability when the employee Page 18 of 64 regularly performs such duties. The Human Resource Director will determine the number, timing, location and duration of the assignments receiving the additional pay provided herein and which languages are needed. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the desiguation of positions will be referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. Section 10 -Communications Training Officer (CTO) Compensation. Public Safety Dispatchers and Chief PUblic Safety Dispatchers identified by Management to work as a Police Officers Standards and Training (pOST) certified CTO will be oompensated at a premium pay rate of five (5) percent. The premium pay is provided only for tho~e hours spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center. ARTICLE IX -UNIFORMS AND TOOL ALLOWANCES Section 1 -Uniforms. (a) The City will provide uniforms, coveralls or shop coats on a weekly basis, or as otherwise furnished, for the following jobs andlor classifications and any positions necessary or required as determined by management. Animal Control Officer Assistant Storekeeper Auto Service Mechanic Building Service Person -Lead Building Service Person Cathodic Technician Cement Finisher -Lead Cement Finisher Chemist Commimity Service Officer 0 Electrical Assistant Electrician Apprentice Electrician Lead Engineering Technician Ill-Refuse Equipment Operator Equipment Operator -Lead Facilities Carpenter Facilities Electrician Facilities Maintenance -Lead Facilities Mechanic Facilities Painter Field Serviceperson Gas System ShoplField Repairer Gas System Technician I Gas System Technician II Page 19 of64 i 1 i , Golf Course Equipment Mechanic Golf Course Maintenance Person Heavy Equipment Operator" Lead Heavy Equipment Operator Industrial Waste Inspector Industrial Waste Investigator Instrumentation Electrician Laboratory Technician, Water Quality Control Line Person/Cable Splicer Line Person/Cable Splicer" Lead Mail Services Specialist Maintenance M~~ha:riicMaintenance Mechanic, Water Quality Control Mechanical Unit Repairer, Meter Reader Meter Reader -Lead Mobile Service Technician Motor Equipment Mechanic -Lead Motor Equipment Mechanic Offset Equipment Operator" Lead. Offset Equipment Operator Park Maintenance Assistant· Parking Enforcement Officer Park Maintenance Person Park Crew -Lead Park Maintenance" Lead Park Ranger Parks & Open Space Assistant Police Records Specialist Refuse Disposal Attendant Senior Chemist Senior Industrial Waste Inspector Senior Instrumentation Technician Senior Operator; Water Quality Control Senior Mechanic, Water Quality Control Senior Park Ranger . Sprinkler System Repairer Street Maintenance Assistant Storekeeper Storekeeper-Lead Street Sweeper Operator T raffie Control Maintainer -Lead Traffic Control Maintainer II Traffic Control Maintainer I Tree Trimmer-Line Clearer Tree Maintenance Assistant Tree Trimmer-Line Clearer Assistant . Page 26 of 64 Tree Trimmer-Line Clearer -Lead Tree Maintenance Person Truck Driver Utilities Compliance Technician Utility Field Service Representative Utility InstallerlRepairer Utility InstallerlRepairer Assistant Utility InstailerlRepairer -Lead Utility Locator Water Meter Cross Connection Technician Water System ,Operator -Lead Water System Operator Water System Operator I Water System Operator II Water Quality Control Plant Operator (b) Coveralls will be made available for occasional use as needed to protect clothing for the following classifications and any positions necessary or required as determined by management. Building Inspector Building Inspector Specialist Building Service Person -Lead Cable Splicer Assistant Chief Electric Underground Inspector Electrical Assistant Electrician Facilities MechaniclPainter Heavy Equipment Operator Lineperson/Cable Splicer Park Ranger Seuior Park Ranger Utility Field Service Representative Sprinkler System Repairer Utility Installer Assistant Utility InstallerlRepairer Utility Insta11erlRepairer -Lead (c) Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. (d) Employee clothing seriously damaged or destroyed in conjunction with an industrial injury will be reasonably replaced by the City. Any other claims alleging City liability may be filed with the City Attorney. . Page 21 0(64 L i • -i 1 t (e) Except in the Utilities Division, the City will make available, as an alternative to the shirts currently provided under Section lea), six (6) cotton polo shirts. Employees in the Utilities Division will be provided with six (6) long-sleeve shirts and two polo shirts. Employees will be responsible for laundering the shirtS. Damaged or otherwise unwearable shirts will be returned to the employee's supervisor and replaced by the City. (1) Employees are responsible for laundering Park Ranger and Senior Park Ranger uniforms. ' (g) The City wm meet and confer with the Union regarding any mandated changes to uniforms. Section 2 -1'001 Allowance . (a) Mechanics in Equipment Maintenance, Park Maintenance Lead, Golf Course EqUipment Mechanic, Motorized Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance of $61 0 annually effective July 1, 2005. (b) All tool allowances shall be paid bi-weekly. (c) Parties will meet and confer to determine if additional classifications require tool allowance. Section 3 -Shoe Allowance. (a) Safety Shoes. The City shall reimburse employees 75 % of the cost of job-related safety shoes upon ve;ification of such purchase by the employee. (b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related ' walking shoes for any positions necessary or required as determined by management including Meter Readcr and Meter Reader-Lead. in an amount not to exceed $300.00 per year. A walking shoe is a durable work shoe/boot (non steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water resistant; lightweight and durable; and also provides hard surface cushioning. Section 4 -Certifications. The City has proposed to add certain certifications to the list currently covered by this Memorandum of Agreement. '!be City and Union agree that their discussion of this proposal will.likely require additional time and 'analysis beyond what will be otherwise nceded for the parties to reach agreement. Accordingly, the parties agree that the City and Union will continue to meet and confer on this City proposal following ratification and adoption of the MOA.The parties agree to retain the current list of required certifications below and to attempt to address and resolve the issues raised by the City's proposal and endeavor to reach an agreemcnt to the extent possible, within 60 days of the adoption of this contract. Employees who are required to maintain commercial driver's licenses shall have costs for medical examinations paid by: Page 22 of64 -i i I I , I (a) Completing an examination t!i:rough their PEMHCA provider. After benefits have been paid by the PEMHCA provider, upon presentation of proper documentation, the City will reimburse any remaining costs, or . (b) Completing an examination at the Workfurce Medical clinic or other City designated clinic. Employees may use paid leave for attendance.at scheduled medical examinations. Employees shail be permitted to use upio two hours of regular City- paid time for attendance at biannual medical examinations. The scheduling of such time shall be preauthorized by the employee's supenrisor. , (c) The City will pay special registration and/or certification fees which are required by Management. During the term of this agreement, the City and the Union may, by mutual agreement, review, add or delete classifICations and/or required certifications listed below: Classification Bldg Inspec Spec Cathodic Technician Engineer Professional Equip Maint Serv Pers. Golf Course Maint Pers. Indust. Waate Inspector Inspector Field Services, Utilities InstaIlerlRepairer Series Mech. Unit Repairer Motor Equip Mechanic and Lead . Public Safety Dispatcher Public Safety Dispatcher, Lead ~uirement ICBO Certificate Corrosion Technician by the National Assoc. of Corr/sion Engineers Professional Engineer Cert. (for step E) Forklift Operator Cert. (OSHA-approved) Qualified Applicators' License Backf10w Prevention Device Testor D1 (DOH) D1 (DOH) Welding Certificate EMS,ASE POST Basic Dispatcher POST Fire Academy EMD POST Basic Dispatcher POST Fire Academy POST Supervision EMD Page 13 of 64 l .... i j j i Sr Operator, WQC Surveyor, PW Tree Trimmer/Line Clearer Tree Trimmer/Line Clearer-Lead • Util InstallJRep series Veterinarian Tech Water System Operator I Water System Operator II Senior, Water System Operator WQC Plant Oper I WQC Plant Oper II WQC Plant Oper Trafuee Water Meter Cross- Connection Tech Grade III Wastewater Treatment Plant Oper·Cert Licensed Land Surveyor Certified Tree Worker and/or Qualified Line Clearancelfree Trimmer Cert (OSHA-approved) Certified Arborist Polyethylene Fusing Cert. Gas Operator Cert. (DOT) Animal Health Tech. Cart. Grade DI -Water Distribution Operator Grade DIl -Water Distribution Operator & Grade TlI -Water Treatment Operator Grade DIlI -Water Distribution Operator & Grade TIll Water Treatment Operator Grade I Water Treatment Operator Cert. Grade II Water Treatment Operator Cert. Grade I Water Treatment Operator Cert. Backflow Prevention Tester Cert Through these negotiations the City and the Union have agreed to add the following required certificates; 1. Inspector Field Services, Utilities Dl (DOH) 2. Insta1lerlRepairer Series, D1 (DOH) 3. Public Safety Dispatcher, EMD 4. Lead Public Safety Dispatcher, EMD (d) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver's License in accordance with the California Vehicle Code and applicable laws prescribed by the Department of Transportation. Page 24 nf64 (e) PipeliTUl Welding Assignment. The City will provide a 4% increase in base compensation to Utility Installer-Repairer, Installer-Repairer Lead positions that meet DOT certification requirements and are assigned these duties. Utility Installer- Repalrer and Utility Insta1ler-Repairer Lead positions that fail to maintain current certifications will not receive the 4% increase. Positions assigned these duties and designated by Management to receive this premium will not exceed five (5) Utility Installer/Repairer and InstallerlRepairer Lead. If the certification is required in the job description, certification must be maintained. In accordance with their job . description Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shall receive 4% increase to their base pay for pipeline welding. (f) Building InspMtor. Upon successful completion of probationary requirements, the City will pay Building Inspectors a one (1) percent ofbase salary one-time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year or two payments in a career. The Building Inspector Job Description specifies current requirements and the Union and City will agree on a list of appropriate certifications eligible for the premiUllL Premiums will not be paid if certification is not maintained. (g) Water and Wastewater System Operator Certification. Employees classified in the following positions: Water Quality Control Plant Operators I and II, Senior Operator Water Quality Control, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repaiier Job Series may be eligible to receive a 10/. base pay premium for certifications required by the Department of Health and/or the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (1) percent for one (I) certification that is above those listed in theirjob description. An employee who qualifies for this payment shall be paid 1% of the employee's annual base salary once per year. The employee shall be responsible for providing the City with written documentation that the employee has obtained and is maintaining the qualifYing certification on an annual basis. Premiums will not be paid if certification is not maintained. Eligible employees should verify certification will qualifY for the premium before attempting certification. The Union and the City will update the job descriptions to reflect newly required certifications with no further adjustments to base salary. Payments will not exceed a maximum of one percent per year, and will take eff~ in the pay period following the verification of certification. All costs for obtaining certifications above what the job description requires will be the responsibility of the employee and may be paid for by using the City's tuition reimbursement program. (h) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification. Training to be provided by the City. Page 25 of 64 Section 5 -Weather Protection. The City will provide rainy weather foot protection and one sununer hat for the classification of Parking Enforcement Officer. . ARTICLE X -HOLIDAYS Section 1 -Fixed Holidays. Except as otherwise provided, employees within the representation unit shall have the following fixed holidays with pay: January 1 Third Monday in January (Martin Lulher King Day) Third Monday in February Last Monday in May . July 4 First Monday in September Second Monday .in October Veterans' Day, November 11 Thanksgiving Day Day after Thanksgiving December 25 Either December 24 or December 31 (see below) Employees shall be excused with pay for the full work shift on eilher December 24 or December 31, provided, however, that City facilities remain open with reduced staffing levels, that Management retains the right to determine work schedules, and that neither day be considered a holiday for pUlposes of prerruUln pay. If employees are not excused pursuant to lhis provision, one shift of vacation credit will be added to their vacation accrua1. In the event that any of the aforementioned days, except for December 24 or December 31, falls on a Sunday, lhe following Monday shall be considered a holiday. In the event that any of the aforementioned days fails on a Saturday, the preceding Friday shall be considered a holiday. If December 24 and 31 falls on Sunday, then the preceding Friday will be designated for purposes of the holiday. Exceptions to this provision are listed in Appendix E; Section 2 -Pay for Fixed Holidays. (a) All employees shall be paid a full day's pay at their regular straight time base hourly rate for all fixed holidays as defined herein. (b) An employee must be in a pay status on lhe workday preceding the holiday to be eligible to be compensated for a holiday. This subsection does not apply to an employee who is on an unpaid medical leave of absence of less than five (5) days. Section 3 -Work on Fixed Holidays. Any employee required to work on a fixed holiday . shall be paid time and one-halffor such work in addition to his or her regular holiday pay. Work on a fixed holiday beyond the nUlnber of hours in a regular shift shall be compensated at double time and one-half. Employees who work a schedule where a Page 26 0(64 .. , ! regular day off faIls on a holiday will accrue the holiday hours they would have normally worked on that day. Section 4· Variations in Work Week. (a) An employee whose work schedule requires that his or her regular days off be other than Saturday and/or Sunday shall have an additional day off scheduled by the department in the event a fixed holiday falls during his or her regularly scheduled day off. Every attempt will be made to schedule the day on a mutually agreeable basis. If the day carmot be so scheduled, the employee shall be paid for the day at the strlright . time base rate. (b) Fixed holidays which fall during a vacation period or when an employee is absent because of illness shall not be charged aglrinst the employee's vacation or sick leave balance. ' Section 5 . Floating Days Off. Floating days ~ff with pay will be scheduled by Management as follows so as to produce three·day weekends: August2010 April 2011 June 2011 One floating day off One floating day off One floating day off The following conditions will hold: (a) Menagement will designate the scheduling of the plrid day off under this section at least thirty days in advance. (b) If in conformance with this section, Management is unsble to schedule a day off in the month indicated, for reasons of shift operations, work scheduling or any othar reason, the floating holiday will then be added to the employee's vacation accrual on the first pay period of the following month. (c) If an employee fails to take a day off as scheduled by Management under this section, the day off so scheduled will be forfeited. ARTICLE XI-VACATIONS Section 1-Vacation Accruals. Each employee shall be entitled to an armuaI paid vacation, .accrued as follows: (a) First day of continuous service through the last day of the fourth (4th) year: 80 hours vacation per year. Page 27 of 64 ! -, i 1 i (b) First day of the fifth year of continuous service tbroughthe last day of the ninth (9th) year: 120 hours vacation per year. (c) First day of the tenth (IO'h) year of continuous service through the last day of the fourteenth (14th) year: 160 hours vaeation per year. (d) First day of the fifteenth (15tt.:J year of continuous service through the last day of the nineteenth (19th) year: 180 hours vaestion leave per year. (e) Twenty (20) or more years: 200 hours vacation leave per year. Employees may accrue up to three times their annual vacation leave without loss of vacation days. In the event the City is unable to schedule vacation and,' as a result thereof, the employee is subject to loss of accrued vacation, the City shall extend the vacation accrual limit up to one year, in which time the excess vacation must be scheduled and taken. As long as there is no interference with departmental operations, there shall be no unreasonable restriction of increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave. Section 2 -Holiday Falling During Vacation. In the event a fixed holiday as defuied in Article X falls within an employee's vaeation period, which would have excused the employee from work (and for which no other compensation is made), an additional workday for such holiday shall be added to the vacation leave. Section 3 -lllness During Vaeation. When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. Section 4-Accrued Vaeation Pay for Deceased Employees. An employee who is eligible for vaeation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to hisJher estate within thifty days. This proration will be computed at hislher last basic rate of pay. Section 5 -Effect of Extended Military Leave. An employea who interrupts service . because of extended military leave shall be compensated for accroeclvacation at the time the leave becomes eff@ctive. Section 6 -Vaeation at Termination. Employees leaving the municipal service with aecrued vacation leave shall be paid the amounts of accrued vaeation to the date of termination. Section 7 -Vacation Cash Out. Orice each calendar year an employee may cash out eight or more hours of vaeation accrual in excess of 80 hours, to a maximwn ofl20 hours, provided that the employee has taken 80 hours of vacation in the previous 12 months. Page Z8 of 64 -J , ARTICLE XII -LEAVE PROVISIONS Section 1 -Sick Leave. (a) The City shall provide each employee with paid sick leave, earned on a daily basis and computed at the rate of96 hours per year, with no limits on amounts that maybe accumulated, except that for employees hired after July 1, 1983, sick leave accrual accumulation shall be limited to 1,000 hours and subsections (a)(J) and (a)(2), shall not apply. Payment for accumulated sick leave at termination shall be made only in the following circumstances: (1) Eligible employees who leave the municipal service or who die while employed and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their base hourly rate of pay at termination. (2) Full sick leave accrual will be paid in the event of termination due to disability. (b) Use of Sick Leave. Sick leave shall be allowed and used in cases of actual personal sickness or disability, medical or dental treatment, or as authorized for personal business. Up to nine days sick leave per year may be used for illness in the immediate family, including registered domestic partner. A new employee may, if necessary, use up to forty-eight (48) hours of sick leave at any time during the flrst six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from flnal paycheck in the event of termination. (c) An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at hislher option, choose either to receive the ' long term disability benefits or to utilize the remainder ofhislher aCcrued sick leave prior to applying for long-term disability benefits. (d) Sick leave will not be granted for illness occUriing during any leave of absence unless the employee can demonstrate that it was necessary to come Under the care of a doctor while on such other leave of absence. (e) Return to Work With Limited Duty. Upon approval of department management and the City Risk Manager, an employee may return to work for doctor-approved limited duty. Approval for return to work shall be based upon department ability to provide work' consistent with mediea1 limitations, the location of the work assignment, and the length oftime of the limitations. The City doctor may be cotlsulted in determining work limitations. Page190fM "~OJ Section 2 -Bereavement Leave. Leave of absence with pay of three days shall be granted an employee by the head of his or her department in the event of death in the employee's immediate family, which is defined for the purposes of this section as wife, husband, Bon, step-son, son-in-law, daughter, step-daughter, daughter-in-law, mother, step-mother, mother-in-law, father, step-father, father-in-law, brother, brother-in-law, step-brother, sister, step-sister, sister in-law, grandmother, grandmother-in-Iaw, grandfather, grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Request for leave with pay in excess of three (3) days shall be subject to the written approval of the City Manager. Approval of additiOl'Jjl.leave will be based on the circumstances of each request with consideration given to the employee's need for additional time. Section 3 -Military Leave. The provisions of the Military and Veterans' Code of the State of California shall govern the granting of military leaves of absence and the rights of employees returning from such leaves. Consistent with the Military and Ve.terans Code, the City of Palo Alto shall pay employees in SEIU bargaining unit their regular salary, salary differential, and all available benefits for the first thirty days. ' Section 4 -Leave Without Pay. (a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sickleave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. , (b) Family Leave. Family leave will be granted in accordance with applicable state andfederallaw. (c) Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency, Union business or when such absences would not be contrary to'the best interest of the City. Non-disability prenatal leave is avallable under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests for leaves without pay shall no(be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 5 -Jury Duty aIld Subpoenas. Employees required to report for jury duty or to answer subpoenas as a witness in behalf of the State of Califomia or any of its agencies shall be granted a leave of absence with pay from their assigned duties until Page 30 of 64 released by'the court, provided the employee remits to the City all fees received from such duties other than mileage 'or subsistence allowances within thirty (30) days from the termination of jury service. When an employee returns to complete a regular shift following time served on jury duty or as a witness, such time falling within the work shift shall be considered as time worked for purposes of shift completion and overtime computation. In determining whether or not an employee shall return to his or her regular shift following performance of the duties, reasonable consideration shall be given to such factors as travel time and a period of rest. When a combination of City work time and jury duty equals 14 or more hours in the 24-hour period inunediately before the' employee's shift starting time, the employee will be allowed a rest period of nine hours. Any portion of the rest period falling within the employee's work shift will be considered as hours worked and compensated at the straight time rate. This provision does not apply to conditions of bona fide emergency. Bona fide emergency conditions are conditions involving real or potential loss of service or property or personal danger. Section 6 -Time Off to Vote. Time off with pay to vote in any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 7 -Disannroval of Leave of Absence. In case of disapproval of extension, revocation or cancellation of an existing leave of absence, notice shall be sent by certified mail, return receipt requested, to the employee stating the date of such action, the reason and a specific date to return to work, which is not less than five working days from date indicated on return receipt. Section 8 • Personal Business Leave Chargeable to Sick Leave. All employees shall be granted up to twenty (20) hours personal business leave per calendar year, chargeable to sick leave. The employee need not disclose the reason for the personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management, and such approval shall not unreasonably be denied. Section 9 -Return to Assignment. The department shall make every effort to ensure that employees resuming work following a leave pursuant to Sections 1-8 shall be returned to the assignment, shift, and/or work location held immediately prior to the leave. If the employee cannot be so assigned, he or she shall, upon request, be granted a meeting with department management to discuss the reasons for the change. Upon request, the employee shall be afforded Union representation at such a meeting. ARTICLE xm -WORKERS' COMPENSATION INSURANCE Section 1 c Industrial TemporaryDisability. (a) While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall be paid full base salary for a period of not to exceed fifty-seven (57) calendar days, unless Page 31 of64 hospitalized, in which case employees shall be paid full base salary'for a period not to exceed sixty (60) days from date of injury. (b) For any temporary disability continuing beyond the time limits set forth in (a) above, employees shall be paid two-thirds (66 2/3%) of their full base salary at the time of injury for the duration of such temporary disability in confonnance with the State law. , (c) During the period of temporary disability, an employee's eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees. In case of Subsection (a) above, the employee will continue to accrue vacation and sick leave benefits. In the case of Subsection (b), sick leave and vacation benefits shall not be accrued. Section 2 -Vocational Rehabilitation Benefits for Permanently Disabled Employees. Vocational Rehabilitation will be made available to employees who have suffered permanent disability as a result of an injury or illness sustained in the course and scope of employment before 111104. For injuries on or after 1/1/04 qualified employees are entitled to supplemental job displacement vouchers in accordance with the California Labor Code, Division 1, Department of Industrial Relations and Division 4, Workers' Compensation and Insurance, the Americans with Disabilities Act (ADA), and the City of Palo Alto's Workers' Compensation Program. ARTICLE XIV -BENEFIT PROGRAMS Section 1 -Health Plan (a) Active Employees 1. The City will pay up to the monthly medical premium for the 2nd most expensive plan among the existing array of plans, except that for increases that go into effect after January 31, 2010 the City and participating employees will share equally the first ten percent (10%) of each premium increase that occurs for the plan in which the employee is enrolled at their respective level of enrollment (i.e. one party, two ' party, family). If a given increase exceeds ten percent (10%), the balance of that increase will be paid by the City. If sufficient increases occur that the employee portion of the premium for the plan in which he or she is enrolled equals ten percent (10"10) of the total premium at the employee's level of enrollment, the employee's share of further premium increases shall be ten percent (l0%) and the City'sshare shall be ninety percent (90%). City medical premium contributions will be prorated for part-time employees hired 0T newly assigned to a part-time work schedule on or after January 1,2010 based on the number of hours per week the part·time einployee is assigned to work. IfPERS changes the plans it offers, the City and the Union will meet and confer over the City continuing to provide an equivalent benefit at an equivalent cost. Page 32 of 64 J Effective February 1,2010, with premium increases that go into efrect after January 31, 2010 the City shall contribute to its retiree insurance trust (the PERS retiree medical trust or its successor) an amount not less than the amount of premiums paid by active employees in the bargaining unit in the respective calendar year as a result of the sharing of the first 10% of each premium increase as provided above in this paragraph I. The City shall make one contribution in the fiscal year to cover the entire amount payable to the trust under this paragraph as of the preceding December 31. 2. Through December 31, 2009, the City will reimburse employees on PERS Care, Who switch to PERS Choice during the 2006 open enrollment period and remain in PERS Choice for maximum calendar year co-payments for unreimbursed costs incurred due to the difference between the PERS Care maximum calendar year copayment responsibility and the PERS Choice maximum calendar year copayment responsibility. The total payments per employee will not exceed $1000.00 annually unless employee has a one dependent/family coverage in which case annual payment will not exceed $2000.00. The City has agreed to provide an annual amount Of $50,000.00 to address these costs. Iftotalclaims for reimbursement exceed available funds, the City will use any unused tuition reimbursement funds budgeted for SEIU for these purposes. Any money left from each year will carry over to subsequent years of this contract. 3. The City agrees to offer a program to active SEIU employees enrolled in PERSCare as of9/1/06 who elect the PERS Choice health plan in which the City will reimburse the employee and/or dependents for any covered medical expense which exceeds the $2 million Lifutime Maximum Benefit. (b) Health Plan Coverage/or Future Retirees Hired Be/ore January 1, Z005. Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees' Medical and Hospital Care Act. Effective 111107 the City's monthly employer contribution for each retiree shall be the amount necessary to pay for the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered to the SEIU employee (among the existing array of plans). However, the City contribution for an employee hired before January 1, 2005 who retires on or after January I, 2010 shall be the same contribution amount it makes from time to time for active City employees, except that employees retiring after January 31, 2010 but on or before December 31, 2010 shall not be required to pay any premium increase that first takes effect after January 31, 2010. For 2010, the contribution for dependents is 85% (90% in 2011) of difference between the applicable "Employee and One Dependent" or "Family" maximum employer contribution for Active SEIU employees and the maximum monthly employer contribution for "Employee Only" coverage. This Contribution for dependants will increase annually by 5% of the difference between the single party Page 33 of 64 , i 1 premium and the two or family member premium, until such time as the amounts are equal. (c) PERS -Health Benefit Vesting For Future Retirees Effective January 1,2005. The CalPERS vesting schedule set forth in Government Code section 22893 will apply to all SEIV employees hired on or after January 1, 2005. Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional year of service credit will increase the employer contribution percentage by 5% until, at 20 years' service credit, the employee wJl be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for family members will be 90% of the specified employer contribution. The City of Palo Alto's health premium contribution will be the minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. (d) Coverage Jor Domestic Partners. Domestic Partnership Registered with the California Secretary oJState. -Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Registered with the California Secretary oJState. Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the maximum monthly City employer contribution for one- . party coverage under the CalPERS Health Benefits Program for SEIU members. Evidence. of premium payment will be required with request for reimbursement. (e) At City option during the life of this agreement and if otherwise available, the City may offer an incentive payment in lieu of City-paid dependent or family medical coverage for those employees who voluntarily decline dependent coverage. (f) Alternative Medical Benefit Program. If a regular employee and/or the employee's dependent(s) are eligible for medical insurance through any other employer-sponsored or aSsociation-sponsored group medical plan, the employee may elect that alternative medical insurance coverage through the other employer-sponsored or association plan and waives hislher right to the City of Palo Alto's medical plan insurance coverage for same individuals. Employees electing alternative coverage and waiving City coverage will receive cash payments equal to approximately half of the "average monthly premiums" for their medical insurance coverage. "Averaged monthly premiums" are the average of the Kaiser HMO, Blue Shield HMO and PERS Choice PPO premiums of the employee's City medical coverage available through the CalPERS Health Benefits Program. Page 34 of64 l J 1 --j 1 The rates for 2011 are as follows: One Party: $301 Two Party: $603 Family: $783 (g) If the State of California or federal government requires the City to participate and contribute toward coverage under any medical pIan outside ofPEMHCA, the City's totalliabiHty for enrolled employees and retirees and their eligible fiunily members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The City will meet and confer with the Union over the impact of such change on matters within the scope of representation before implementing any change. Section 2-Derrtal Plan. (a) The City shall continue to provide a self-funded dental program for the benefit of City employees and their eligible dependents. The City shall pay 100% ofllie required premiums fur the program, except that benefits for regular part-time employees will be prorated as follows: Employees hired after January 1,2005, who will work less than full time, wilL receive prorated premium costs for dental benefits in accordance with hislher percentage of a full-time work schedule. Part-time employees currently receiving full benefits will not be impacted. (b) The City's Dental Plan provides the following: • Maximum Benefits per Calendar Year $2,000 per person. (c) Effective July 1,2001, dental implants in conjunction with one or more missing natoral teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). (d) Effective 111/07 the City will add composite (tooth colored) fillings in dental plan posterior teeth. (e) Effective 1/1107 the City will pay up to $2000.00 for Orthodontia coverage. Section 3-Vision Care. The City shall continue to provide a self-funded vision care program for the benefit of City employees and their dependents. The City shall pay 100% of the required premiums for the program. The benefits of the vision care program shall continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan. Section 4 -Life Insurance. The City agrees to continue the Basic and Supplemental life insurance plan as currently in effect for the term of this Memorandum of Agreement. Page 35 of 64 I l J J -; Section 5-Long Term Disability Insurance. The City shall continue the long term disability insurance plan currently in effect for the term of this Memorandum of Agreement. For Plan A, the benefit is 66 and 2/3% of pre-disability earnings to the maximum benefit level of $4000.00 per month. Employee coverage is su~ect to' a voluntary payroll deduction of the insurance premium applicable to the first $6,000 of monthly salary, less a credit of$11.17 per month to be paid by the City. For Plan B, the benefit is 60% of pre-disability earnings up to the maximum benefit level of $1800 per month. Employee coverage is su~ect to a voluntary payroll deduction of the insurance premium applicable to the first $2000 of monthly salary for Plan B. The City will pay premimns in excess thereof. The City will pay up to $17.50 per month toward long term disability insurance premiums for those employees without eligible dependents covered under the health insurance provisions. Section 6 -Effective Date of Coverage for New Employees. For newly-hired regular employees, elected coverage will begin on the first day of the month following date of hire. Section 7 -Dual Coverage. When a City employee is married to another City employee each shall be considered as an employee for purposes of health and dental coverage, provided however that neither shall be covered as a dependent of the other, and dependent children, if any, shall be covered by only one spouse. Section 8 -Deferred Compensation. The City shall continue to make available a Section 457 Deferred Compensation Plan to SEID employees and will insure reasonable access to Deferred Compensation representatives for all interested employees. Section 9-Dependent Care Assistance Program. The City shall contin1:!c to provide a Dependent Care Assistance Program (DCAP) for employees that complies with Section 125 and 129 of the Intemal Revenue Code. Section 10 -Training Programs. (a). Employees assigned by the City to attend meetings, workshops, or conventions of their professional or technical associations shall have their dues and reasonable expenses paid by departmental funds and shall be allowed to attend such workshops, meetings, andconventipns on paid City time . . (b) Health club/gym membership reimbursement of these expenses is taxable to the employee. (c) City will reimburse for travel, meals and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee's skills. Per City Policy and Procedure 1-02, the Pre- Travel Authorization Form should indicate expenses that will be paid. Page 36 of 64 ·.J ARTICLE XV -RETIREMENT Section 1 -PERS Continua:tion. The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 for employees hired before January I, 2010 or the later effective date of the 2%@60formulafornewhires as described herein. The City shall amend its contract with CalPERS to provide such employees hired on or after the effective date of the CalPERS amendment with the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60). The City will implement this change on July 17,2010 .. Section 2 -Employee Share. Employees currently pay two percent (2%) and the City pays six percent (6%) of the eight percent (8%) employee contribution toward the 2.7 @ 55 pension fonnula. Effective 'With the pay period including December 1, 2009, employees under the 2.7 at 55 formula will pay an additional six (6%) percent toward 2.7% @ 55 for a total of eight percent (8%) of the PERS employee-share contribution. The City contribution of the PERS employee share will simultaneously change to zero percent (0%). Effective June 30, 2.010, the PERS employee share contribution rate of employees under the 2.7 @ 55 pension formula shall change to five and three qnsrters percent (5.75%) and the City's contribution shall simultaneously change to two and one qnsrter percent (2.25%) of pay. For employees hired on or after January 1, 2010 or such later date as the 2.0% @60 formula is implemented by the City, as provided in section 1 above, employees covered by that formula shall pay five percent (5%) of pay toward the seven percent (7%) employee contribution and the City shall pay two percent (2%). However, ifPERS laws or rules require that the contribution rate of employees toward the respective employee contributions under the 2,0 @ 60 and 2.7 at 55 formulas must be the same, the uniform employee contribution rate shall be six percent (6%) with the City paying the remaining percentage for the applicable formula. Section 3-Conversion for Final Twelye Months Prior to Retirement. Notwithstanding Section 2 above and pursuant to Govermnent Code Section 20615.5, upon filing a notice of retirement, the amount of the City-paid PERS employee contribution will be converted to a salary adjustment of equal amount on a one-time irrevocable basis for the final twelve months immediately prior to retirement. For this final twelve-month period the employee shall pay PERS employee contributions. Upon receiving an employee's notice of retirement tbe City-paid PERS employee· contribution that will be converted to a salary . adjustment of equal amount on a one-time irrevocable basis for the final twelve months immediately before retirement will be the amount of the applicable employee-paid contribution set forth in section 2 of this Article. For this final twelve-month period the retiring employee on the 2.7 at 55 formula shalI pay the full percentage of the applicable PBRS employee contributions (8% for employees on the 2.7 @ 55 formula and 7% for employees on the 2.0% at 60 formula). Section 4 -Utility Rates Discount: Employees who retire and were employed by the City on or before April 1, 1977, .and spouses of deceased employees who were employed by Page 37 of64 the City on or before April 1, 1977, shall continue reductions in utility rates. All retired employees and sponses of deceased employees shall also have residential privileges at City libraries, Tefuse disposal area, golf course and swimming pools. ARTICLE XVI" COMMUTE INCENTIVES AND PARKING Section 1 "Commute Incentive. Eligible employees may voluntarily elect one of the following commute incentives: Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. Public Transit. The City will provide monthly Commnter Checks worth the value of: $40 for employees traveling two or more zones on Caltrain; $40 for employees using the Durnbarton Express, BART, the ACE train, or a commuter highway vehicle; $35 for employees traveling within one zone on Caltrain; $35 for employees using VTA, and other buses. These cheeks are pretaxed and may be used toward the purchase of transit pass. Carpool .. The City will provide $30 per month (taxable income) to each eligible employee in a carpool with two or more people. Vanpool Program. The City will provide Commuter Checks worth the value up to $60 to each employee voluntarily participating in theVanpool Program. These checks are pre-taxed and maybe used toward payment of the monthly cost of Vanpool Program participation. Employees must fulfill the basic requirements of the Employee Commute Alternatives Program to qualify. Bicycle. The City will provide $20 per month (taxable income) to eligible employees who ride a bicycle to work. Walk. The City will provide $20 per month (taxable income) to eligible employees who walk to work. Section 2 -Parking Lot Security -Municipal Service Center. The City will provide fenced and locked parking facilities for Municipal Service Center employees. Procedures will be established for entering and leaving the parking facilities. . Section 3 -Bicycle Lockers and Motorcycle Parking. The City will provide bicycle lockers and motorcycle parking areas for City employees at mutually agreeable work locations. Page 38 of 64 ARTICLE XV» -PHYSICAL EXAMINATIONS . If any non-probationary employee who is required to have a City-provided physical examination not related to workers' compensation programs disagrees with the fmdings of the City-sponsored physician, helshe may consult with hislher own physician and, if hisJher private physician's report conflicts with that of the CitY physician in terms of ability to work at hislher regular job, then he/she may request an evaluation ofhlslher problem through a third physician mutually agreed upon by the employee and the City. o • Cost for such examination will be equally shared and the decision of this physician concerning the continuing ability of the employee to perform hislher work in hislher regular job without exposing himselflherselfto further injury as a result ofhisJher condition shall be the basis for returning the employee to hislher regular work. ARTICLE XVIII..,. SAF·ETY Section I -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, jn conformance with applicable safety regulations under the State Labor and Administrative Code sections. The City shall not require or permit any employee to go to or be in any employment or place of employment which is not safe. Section 2 -Union Cooperation. Union will cooperate with the City by encouraging all employees to perform their work in a safe manner. Section 3 -Safety Committees and Disputes. Safety committees composed of Management and Union stewards in the below listed . organizations will meet no less than six (6) times annually to discuss sa.fi:ty 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 {)r her supervisor. Community Services Public Works Water-Gas-Wastewater Field Operations Electric Field Operations Water Quality Control (a) A committee composed of one facilities Management representative, one building inspection representative, two Union representatives, and the City Risk Manager will meet as needed concerning safety matters of the Civic Center. (b) A ten-member Citywide UnionlManagement safety committee with equal Union and Management membership will meet upon call to review safety and occupational . Page 39 of 64 I ! ! j I _. ; i health standards and practices, discuss overall City safety and health problems, and to act as an advisory group to the departmental safety committees. The committee shall review all departmental safety programs and recommend change where necessary. (c) In cases of dispute over safe working conditions the employee will first report such WlSafe conditions to his or her supervisor and every attempt will be made to rectify the problem at this leveL The employee may contact his or her steward to assist in the resolution of the dispute. If the problem cannot be resolved the Risk Manager will be contacted and the problem will be addressed through the interpretation of the basic safety rules and regulations. Should the problem not be resolved at this step, . the grievance procedure will be utilized. Safety grievances shaJ.l be submitted at Step III. (d) In response to recommendations from the Ergonomics Safety Committee, management will develop training workshops which include information on safe ergonomiC work practices. Such workshops will be given at least two times per year. Upon release of CaJlOSHA regulations covering safe workplace ergonomic standards, management will immediately adopt such standards as perty of its Injury Prevention Program. ARTICLE XIX -GRlEV ANCE and APPEAL PROCEDURE Section 1· General Provisions. The City and the Union recognize that early settlement of grievance or appeal of disciplinary actions is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or appeal of disciplinary action, or Union grievances as provided for below. In presenting a grievance or appeal of disciplinary action, the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Release time for investigation and processirig a grievance or appeal of disciplinary action is designated in Article IV of this Memorandum of Agreement (MOA). Section 2 -DefInitions (8) Grievance means an unresolved complaint or dispute regarding the application or interpretation of rules, regulations, policies, procedures, Memorandum of Agreement or City ordinances of resolution, relating to terms or conditions of employment, wages or fringe benefits, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance or appeal of disciplinary action procedure. (b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action against an employee covered by this Memorandum of Agreement. Discipline is defined as suspensions without pay, reductions in pay, demotion or discharge. Page 40 of 64 . i , j . -> ~ -c Reprimands, transfers, reassignments, layoffs, and negative eomments in performance evaluations are not considered discipline . Seetion 3-Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure (a) An aggrieved employee may be represented by the Union or may represent himselflherself in preparing and presenting a grievance or appeal of disciplinary aetion at any level of review. Grievances or appeal of disciplinary action may also be presented by a group of employees. No grievance or appeal of disciplinary action settlement may be made in violation of an existing merit rule or memorandum of agreement. The Union will be notified prior to the implementation of any settlement made which affects the rights or conditions of other employees represented by the Union. The Union and the Steward will be copied on all written representation unit grievance or appeal of disciplinary action decisions . (b) AnempJoyee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance or appeal of disciplinary action. Requests for release time to prepare grievance or appeal of disciplinary action shall be made in accordance with the provisions of Article IV, Section 3. (c) Beginning with the third step of the grievance or appeal of disciplinary action procedure, the Chief Steward or Alternate Chief Steward may assist in presenting a grievance or appeal of disciplinary action and may be present at all Step TIl, and IV grievance or appeal of disciplinary action hearings. (d) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Union and the reviewer concerned. (e) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step. (£) The grievance or appeal of disciplinary aetion may be considered settled if the . decision of any step is not appealed within the specified time limit. (g) If appropriate, the aggrieved employee( s) or the Union and the department head may mutually agree, in writing, to waive Step I andior Step n of the grievance or appeal of disciplinary aetion procedure. (h) Grievances or appeal of disciplinary aetion shall be made in writing and submitted on forms provided by the City or. on forms which are mutually agreeable to the City and the Union. The written grievance or appeal of disciRlinary action shall contain clear, factual and concise language, including: (1) the name of the grievant; (2) a statement of the facts upon which the grievance or appeal of disciplinary aetion is based, including relevant dates, times and places; (3) specific provisions of this Agreement or specific City rules, policies, Of procedures which the grievance or Page 41 of64 appeal of disciplinary action alleges has been violated:; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance or Ilppeal of disciplinary action. (i) Any retroactivity on monetary grievances or appeal of disciplinary action shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance or appeal of disciplinary action was filed in writing, (j) If the grievance is filed by more than one employee in the bargaining nnit, the Union may, at its option, convert it to a Union grievance after Step II of the griew,mce 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. For purposes of time limits, "working days" are considered to be Monday through Friday, exclusive of City holidays. If a mutually agreed solution is reached during any step of this grievance or appeal of disciplinary action procedure, the agreement shall be placed in writing and signed by the City and the grievant or nnion. (m) Upon request of either party, meetings to discuss the grievance or appeal of . disciplinary action shall be held at any step in the grievance or appeal of disciplinary action procedure. Section 4-Grievance and Appeal Procedure. Step I. Informal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance or appeal of disciplinary action is based the Ilggrieved 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 l~eL Step n. If the grievance is not resolved through the informal discussion in Step 1 or the employee wishes to appeal disciplinary action taken against him!her in the case of a grievance, the employee will reduce the grievance or appeal of disciplinary action to writing and submit copies to the Department head or his or her designee within :fifteen (15) working days of the discussion with the immediate supervisor or within fifteen (15) working days from the receipt of a final disciplinary action. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance or appeal of disciplinary action to review the matter and prepare a:written ststement. Step m. If the grievance or appeal of disciplinary action is not resolved and/or the Ilggrieved employee is not satisfied with the Step II decision, the grievant or disciplined Page 42of64 , employee may appeal to the Human Resource Director or his or her designee in writing within fIfteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance or appeal of disciplinary action, the Department Head's decision at Step II, and a clear statement of the reasons for appeal. Within fIfteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step IV. If the grievance or appeal of disciplinary action is n~t resolved at Step III, the aggrieved emploY>le may choose between final and binding resolution ofthe~evance or appeal of disciplinary action through appeal to the City Manager or through appeal to final and binding arbitration. For the tenn of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Union approval. All Step IV appeals must be filed in writing at the Human Resources Department Office within fifteen (15) working days of receipt of the Human Resource Director's decision at Step 3. If the grievant or appellant elects final and binding resolU\ion by the City Manager, the City Manager will choose the methods he or she considerS appropriate to review and settle the grievance or appeal of disciplinary action. The City Manager shall render a written decision to all parties directly involved within fifteen (15) working days after receiving the grievant/appellant's appeal. If the grievant/appellant elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator within 90 days from the date of receipt of the written request for appeal. In the eve,nt 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 detennine compliance with the provisions of tliis . Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances or appeal of disciplinary action appealed to the arbitrator. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum Of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in Article XX and without regard to the merits of the grievance or appeal of disciplinary action. If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance .. Ifno 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. AIl direct costs emanating from the Page 43 of 64 -, ! arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. ARTICLE XX -uNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION The City has the right to discipline, demote, or discharge employees for cause. Non- probationary employees whosc 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, demction, 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 1 -Preliminary Notice of Discipline. Prior to imposing disciplinary action, a supervisor shaH 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 mall 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 discip1inary action was fully or in part based. (f) Statement advising the employee ofhislher right to appeal from such action, and the right to union representation. (g) The date and location of the Skelly meeting and the name oithe Skelly Officer Section 2 -Skelly Meeting. The employee shall have the right to respond infonnally to the charges either verbally or in Writing before the discipline is imposed. The employee . shall have fifteen (15) working days from receipt of the notice to request this pre- disciplinary administrative review. The employee may request a reasonable extension of the time to respond for jnstifiable reasons. The Skelly meeting to listen to the veJ:bal responses shall be scheduled with a City representative who is not the manager Page 44 of64 recommending the discipline (the "Skelly Officer"). The Skelly Officer shall render a final written decision (the "post-Skelly decision'') within fifteen (15) working days of receiving the employee's response, if any, and shall deliver the post-Skelly decision to the employee by personal delivery or registered maiL The Skelly Officer may sustain, modii)', or overturn the recommended disciplinary aetion. If the Skelly Officer sustains or modifies the disciplinary action, the action may be imposed after the post-Skelly decision is delivered to the employee. Section 3 -Appeals. Appeals of disciplinary action should be processed through the proced1U"es outlined in Steps 2-4 of the gtievance appeal of disciplinary action procedure (Article XIX, Section 4.) ARTICLE XXI -NO ABROGATION OF RIGmS The parties acknowledge that Management rights as indicated in Section 1207D of the Merit System Rules ilnd Regulations and all applicable State laws are neither abrogated nor made subject to negotiation by adoption of this MOA. ARTICLE XXII -OUTSIDE EMPLOYMENT The provisions of Article 4.7 of the Government Code of the State of California will govern the determination of incompatible outside employment. ARTICLE XXIII -WORK STOPPAGE AND LOCKOUTS The City agteeS that it will not lock out employees, and the Union agtees that it will not engage in any concerted work stoppage or slowdown during the term of this MOA. An employee shall not have the right to recognize the picket line of a labor organization when performing duties of an emergency nature. ARTICLE XXIV PROVISIONS OF THE LAW Section 1. Conformity and Separability of Provisions. This Memorandum of Agreement is subject to all current and future applicable Federal and State laws and Federal and State regulations and the Charter of the City of Palo Alto and the Constitution of the State of California. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation, such invalidation of such part or portion of this Memorandum of Agteement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 2. Merit Rules and Regulations. This Memorandum of Agreement shall become a part of the City of Palo Alto Merit Rules and Regulations applying to employees assigned to classifications in the SEIU unit. As applied to employees assigned to the Page 45 of 64 j i 1 ! SHIU unit, this Memorandum of Agreement shall prevail over any conflicting Merit Rules and Regulations. Section 3 -Resolution. The City and the Union agree by signing this Memorandum of Agreement that the wages, hours, rights and working conditions contained herein shall be continued in full force during the term of this Memorandum of Agreement exeept 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 uponratification by Union membership. ARTICLE XXV -COST REDUCTION PROGRAMS During the term of this agreement, the Union will aggressively assist Managemerit 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 XXVI -TERi\f The Term of this Memorandum of Agreement shall commence on July 1,2010, and shall expire on June 30, 2011. Either party may serve written notice upon the other party during the period between ninety (90) and sixty (60) days prior to JlUle 30, 2011, of Its desire to amend this Memorandum of Agreement. If, at the time this MemotllI1dum of Agreement would otherwise terminate, the parties are negotiating a new Memorandum of Agreement, upon mutual agreement the terms and conditions of this Memorandwn shall continue in effect. Page 4() of 64 i . j ; -i EXECUTED this d1JY, JQIy ,2010: FOR LOCAL 521, SEIU, CTW: FOR CITY OF PALO ALTO: JL s tJ~Z~.t Nick Raisch Worksite Organizer r)tv&nvJ~ Brian Ward . Chapter Chair d/~· , Victor Farisato Chief Steward Margaret Adkinl; Vice Chair JoelDino Secretary ~Jrum--~-~=-~----------------- City Manager Russ Carlsen Human Resources Director Sandra Blaooh Assistant Human Resources Director Marcie Scott Labor Relations Administrator JoeSaccio ,. Deputy Director Administrative Services Department Gregg Betts Community Services Director Robert De Geus Community Services Division Manager Darrell Murray, CbiefNegotiator (lEDA) Page 470f64 REVIEWED: Melissa Tronquet Senior Deputy City Attorney _ ... ; Page 48 of 64 --J- ATTACHMENT A . CITY OF PALO ALTO 2009 SEIU . A ~. Class Job Steo 1 Steo 2 StEP 3 step 4 SI :,:ppr?~ ~~~~o; IAcel Soec IAcet 19.39 2[41 2 . 2 !.62 4 ~07 4 e80 22.6s' 23.84 21 . 2 1.42 4 ~40 5 ,844.80 ~ ill 15 I I --::~! 1 :~:~~H"';::;;';'~.--'-"': ~*~ I ~~~ ~h~U~~~~.Irt---; ~H~+-'i"~ ~1~l3~~~II:~:~:,c~ontr~ro~"(~;~~e~~~~~~~EE3I~~-~ ~ '0 IA~::~t. ~ loee II I-11 !4 ~ l- I-,071 5~ i~ ::D56. IAssoc Buyer 11 11 ~~3313~I~ASSOCm~~~====~=J~i9a:~ 17.16 '3 13.20 BE 353 IAssoc I 0 ~hl~5.118<+-· ""*~--;;'<:';1.5*3-i;'6 11.87 247 IAssoc Power En~r i9 40.10 12.!1 44.43 ',701.20 269 IAssoc Res 10 40.85 13. '0 45.26 '.845.07 330 IAsstl 3lf.7i 35.10 37.79 I ~ 256 lAss! Power Enar 32.6' 38.lQ. 40.11 52. ~ 268 IAsst F:es +--;~+h~ r.,~~~~~ :-1,J : c,~ *-.;&:7.H--:~ ~ 16. 1.406. '.R73. ;.4 . ~ t· S . I t- I- ~h;i;l' .54' ~502.4C .0 I-Fi IBuver : Tee Tech . l- I- 208 DBG 20 3 . . 7 :oor, Utllitv Prol I-i"3: ~ 7. 34 10~~~~UtlIlWP~.S n,.,y 7 ,UUII c:--_---'-_+-~~.68 I-1-.79 ~ :ourt liaison ( .~.57 I-1.91 ~ :rim'l Analvst Cust ~rv I Cust ~vc I- 217 26.47 27.86 29.33 3 88 32. Page 49 or 64 J.R ~ :.705.61 FLSA 10n·1 Ion· j CITY OF PALO ALTO 2009 SEIU t2;).31 21.38 ~ ~.....; 4 4 ~ '--;,03 -..; 1.03 -- ~ • Lead ;a - 75 . , . ,694 •. ;,2' ~p~~Teoo ~h ~ii~t t i:~~ ~~ ~~~~~ ~30. = ~ 16: ~,Pers WGW 25.:- I 383 I Flee Sves Caor< -' -!.2l±: Gas .v.tem fee . • -f-' ~ == DGas II -' '. 456 Golf' I Mach . ~ IGOlf';orMt~erson .....; ~ ;saw Eouie Ooer 391 1eaW Eou P Oosr-L 508 no waste """"C ;2 Library AIls! Mater Shop Lead O§i Vlobile service Tech -- :-8 -- ....: ....: ....:' ~ .,192:-~~t~~~~~~~~~ ~ '.020 .• --' -.....; Page 50 of 64 380 Motor Eauio Mach 381 tor CiUfD ?Rfl 'Or 287 tor i~ ~"'nlllni i . I Park Main!· .ead ! ~ 1 I PArk RAnnA' ~ --~ i:l i:If -CITY OF PALO ALTO 2009 SEIU Schedule 2 19 2: 19 Page 51 of 64 . - 1.907 r.02 4~ 18.90 5-;000:: ~~ ;.616 I-- 71 sa 11.60 175.: i.580.; 54870., 5a '18.' .392. ~lan·1 . 405 lSI I Ei laff 2, 21 :, ;;5 ~ Jo I Assl ,Public Wks CITY OF PALO ALTO 20~9 SEIU ~ _.. Schedule ),6 24M 2 11 2 ;8 27.68 29.62 16, if ;0 19. ~4 13,14 ;.404, ;.018. 1,240.00 I 309 :::!, 11 ~ 229 I-S ~3Of. 406 'rafCon! Main! 61 713.1 ~ :~;;~~g~~~::~~::~~~ __________ ~~ ~+~~~~~~r-~~~~~_~*~~~~~+~~~~~~~ 435ree Main! Aos! f-~, ~~..ree ~~ ____ ~...;2&41"*'l7_ 27,4',..., -::-'"' ~ , .• ~~~~!~!.u~~1,294.40 ~4~30~·re~e'Th~II~m/LLn~~ ________ ~ __ ~241,.4~~~H-~2~77,~O~~H-~~~~ ,316,80 431 'ree Trlm/Ln Clr-L 20,1 27.48 28.93 ~ 're" Trm/Ln ( Ie Ass! 22.9 24.20 25.48 ,.~" 5f H~+!m'n ,[ river ~ccl Reo ~cctg Tech '2 Como Tech' 1-...;;..;'3;...+.' I ~eeh-l 219 CFGdiVCol Soee 31C I EriCr 486, I Fld Svcs Rep 480 I 481 I I ,Ast 479 I I- , i 36: iKev AON R~n 27' ~~~:;~~~~~~ ~~~~ ~ ~-~i I . Mkt Rale ·5 I I I OD~r . r Lead t~~,oti I r Kev , I Reo - 290 I Install I Cert 289 Jtl Install I Cert ,404. 259 Dif SvstTech 27 35. e 278 T sch 19 26. 4 274 Coord . ;,7, 102.' Page 52 of 64 lon, .. ~ I i i 1 APPENDIX B. APPRENTICESHIPS WATER QUALITY CONTROL OPERATOR TRAINEE may lead to positions within Water Quality Control. ELECnuCIAN/LINEPERSON -LINEPERSON/CABLE SPLICER APPRENTICE: May lead to Electrician or LinepersonlCable Splicer positions. The Utilities Department is proposing to formalize the Apprenticeship prOgralns in the Electric Section to develop joumey level electricians and linepersonlcabJe splicers. The following are basic concepts/principles to be incorporated: 1. Positions/classifications to be identified through the normal budget process - three initially. 2. The joumey level position will not be a promotional opportunity for anyone other than the apprentice underfilling the position, so long as that apprentice is successfully progressing through the program. 3. Employees in Electric Operations who qualify will be given first consideration for the apprentice position prior to other City classifications or recruiting from outside the City. 4. A le~ of agreement will be entered into by the apprentice and the City identifYing the terms and conditions of the program. 5. The program will normally require 36 months to complete. 6. Normal progress through the program will be in periodic increments with formal evaluations. 7. Salary steps will be established to bridge the Electrical Assistant classification into the journey level classification. 8. A process for initial selection and placement in the program will be established. The City and the Union agree to review or develop job descriptions to better reflect the qualification necessary to attract and retain successful candidates for this program: It is further agreed that the job descriptions will not warrant additional Compensation. 9. A procedure for removing an unsuccessful apprentice from the program will be developed. 10. A task force including joumey level persons will be assigned to determine the content and approach to specific elements of training. Page 53 of 64 I , J ~ , , 1 I. Training will consist of on-the-job (OJT) and after hours elements (study and formal classes). Off-the-job training costs will be funded by tuition reimbursement and departmental funds. Personal time spent in off-the-job training will not be compensated. . 12. The apprentice will be under the continuing guidance of an appropriately qualified journey level person during OJT, Such journey level persons will be assigned by Management from among volunteers and will receive no . additional compensation. 13. Qualifications/progress will be verified by appropriately kept records. 14. Unless specifically stated otherwise, regular City personnel policies and MOA provisions will apply to the apprenticeship program. 15. This program may become a conceptual model for apprenticeships in other' divisions or departments. Pag.54 of 64 i ! J i I ! APPENDIX C. ALTERNATIVE 4/11 WORK SCHEDULE The City and Union have agreed to the following alternative work schedule for Public Safety Dispatchers: 1. The City agrees to maintain a minimum of 18 permanent dispatchers on paid status for this alternative 4111 work schedule. If the Communications Unit falls below the minimum staffing levels for Communications for more than 120-days (4.months), the City and the Union will meet and confer over whether to continue the 4/11 schedule or revert to another schedule (such as 411 0) until such time as there are 18 pennanent dispatchers on paid status. 2. The City agrees that in accordance with FLSA requirements the dispatchers Will receive overtime for all hoUrs worked outside of the regularly scheduled work hours of the 4111 schedule. Page 55 of 64 APPENDIX D -DEPTfDIVISION CLASSIFICATION WORKDAY OR WORK WEEK VARIATION Section 1. Exceptions to Standard Workday or Work Week for SEIU Representation Unit: COMMUNITY SERVICES Arts & Culture Division Volunteer -Coordinator Each week (30 hi/uxs): 15 hours of unscheduled time; 15 hours of scheduled time Library Department Coordinator, Library Programs Librarian Senior Librarian Library Specialist Library Assistant Library Asscciate In a given workweek, staff may work three eight-hour days, one seven-hour day, and one nine-hour dily. On a voluntary basis, staff may work. five non-consecutive days within seven. Section 2. Rules Governing Flexible Work Hours. These rules and procedures are established pursuant to Article VI, Section 8, and are an application of Article VIII, Sections 1, Z, and 3 of the Memorandum of Agreement to the classifications of Coordinator, Recreation Programs; Producer, Arts & Sciences Programs; Program Assistant; Theater Specialist, in the Recreation and Arts & Culture Divisions of the Community Services Department, and the classifications of Associate Planner, Building Planning Technician, CDBG Coordinator, Engineer, Executive Secretary, Office Specialist, Planner, Senior Planner and Staff Secretary in the Planning and Community Environment Department. (a) Flexible Work Schedule I. Employees in the covered c1aasification shall be permitted to arrange flexible work schedules with division approval, providing that such schedules shall include forty (40) hours per week. 2. Standard daily office hours shall be Monday through Friday, between the hours of 8:00 a.m. and 6;00 p.m. Flexible hours may oceur for supervision of, and/or attendance at, evening programs, meetings, weekend events, or other programs. Page 5Ii ot64 J C1 -1 , I ') , I "1 ··"1 (b) Overtime I. Emergency call-out work shall be defmed as overtime work and compensated per standard City practices. 2. If the need arises for overtime work due to an unusual circumstance calling for extra hours or due to a special event, compensation shall be allowed with prior approval of the Director of Recreation, Director of Arts and Culture, or the Director of Planning and Community Environment, and shall be compensated for, as spelled out in the Memorandum of Agreement. Section 3. 2080 Plan (a) Either the Union or the City may withdraw from the Plan by giving the other party 30 calendar days written notice. In the event of tennination of the plan, the covered classifications will return to an 8-hour or other authorized workday as provided under Article VIII, Section I, of this Memorandum of Agreement. (b) Provisions of the 2080 Plan are as follows. To the extent that these provisions are in conflict with other provisions of the Memorandum of Agreement, these provisions will prevail. (c) The 2080 Plan or "12 hours per Shift Schedule" is an authorized work schedule for the Electric. System Operators and Water Quality Control Plant Operators. 2080 Plan Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For scheduling purposes, and subject to the Merit System Rules.and Regulations, the employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks at the nonnal number of hours worked per week. Any employee covered by the Plan who works up to 2,080 hours per year is compensated for all hours worked at the agreed upon rate. The City must pay overtime for all hours worked in excess of 12 in any workday, 56 hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of overtime will be at time and one-halfthe employee's regular rate of pay (or current contract overtime rate, if different). Shift Schedule The shift schedules combined must provide full 24-hour, seven (7) days per week. coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule shall be a rotating schedule. The Electric System Operators' shift schedule will reach the equivalent of 40 hours per week in five weeks. The 12-hour shifts begin at 7:00 a.m. and 7:00 p.m. The Relief shift shall begin at 7:00 a.m. and end at 3:00 p.m. with lunch taken while working. The shift schedule shall be rotating schedule. The Water Quality Control Plant Operators' shift schedule will reach the equivalent of 40 hours per week in two weeks, There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon on the fourth day. Page 57 0164 · , -·i j Pay Period Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay periods and workweek for the Water Quality Control Plan Operators will begin Saturday at 6:01a.m. Wages Wages will be based on the City of Palo Alto Compensation Plan. which may vary from time to time as mutually agreed upon. Overtime Under the 2080 Plan. the City will pay overtime for all hours worked in excess of 12 in any workday, 56 in any work week, or 2080 in 52 weeks, as the case may be. Overtime will also be paid for hours worked when an employee is called in to work other than their regulerly-scheduled Shift. The overtime rate of pay will be one and one-half times (or current contract overtime rate, if different) of the employee's regular rate of pay. All overtime worked will be paid to the employee. No compensatory time off for overtime will be allowed with the exception of Water Quality Control Operations. ReHef Employees This provision only applies to the Electric System Operators. The five Operators share the relief week evenly as they rotate through the five week cycle. Relief employee(s) will be used within the l2·hours shift schedule only when relieving for the System Operators on shift. When not relieving, they will work four eight-hour Shifts. When a vacation relief week results in a 36rhour or 48-hour week, the operator working said week shall be paid at one and one-half (I :6) time their normal rate of pay for hours that exceed thirty two (32) hours, Relief Duties This provision only applies to the Electric System OperatOIS. An employee who is scheduled to perform relief duties shall be available for duty in revolving shifts on any day of the week and may be assigned for relief in any shift without advance notice. Relief employees will be paid standby pay during their relief week. Standby This provision only applies to the Electric System Operators. An employee who is on relief duties is covering standby, and will be compensated according to Article VIII, Section 7 Ca) of the Memorandum of Agreement. If the relief employee is onvacation or Page58of64 otherwise unavailable for relief duties, the employee(s) on their three or four-day off period will be first on standby . . Management reserves the rig~t to utilize Management personnel as Operators on a short- term, as needed basis, if no Operator is available. Filling Vacant Positions If the City elects to fIll a vacancy other than by reassignment of the shift or the utilization of prior or succeediog shift personnel, the folIowiog procedure shall be used: Employees will be called accorditig to their position 'on the Pre-arranged Overtime List (POL). "lVith the person "lVith the lowest balance being the first one called, The purpose of the POL is to fairly distribute the available opportunities. If an employee turns down the overtime, that amount"lVill be added to the employee's POL bahmce. If ao employee cannot be contacted for such assigoment, the employee will not have any overtime added to their POL account balance. Shift Changes Shift changes ceused by scheduled time off or sick leave will not be considered an official change in shift. Maximum Hours Worked No employee shall work more !han 18 consecutive hours. Rest Period In a 12-hour workday. employees are 'aotitled to a rest period of 8 consecutive hours after working 6 hours overtime during the 12 hours immediately before the regularly scheduled hours of work on a workday or non-workday. Holidays Employees who begin their day or night shift on an observed holiday will receive overtime premium in accordance with Article X, Section 3 of the Memorandum of Agreement. Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. Employees workiog for Water Quality Control Operations may accrue holiday time convertible to vacation. Sick Leave Sick leave will be earned. as indicated in Article XII, Section I (a) of this MOA, and shall be charged in increments of one hour. Floating Days Off Floating days off will be converted to hours at eight hours per day and credited to the employees' vacation bank for use as scheduled vacation. Page 59 of 64 Vacation An employee's total entitlement will be converted to hours (eight hours = one day). A workday will consist of 12 hours, and employees taking vacation will be charged 12 hours of use. Two week notification is required for any scheduled time off. Only one person at a time may be scheduled off. It is the intention of the City that vacation be taken in units of one work week; however, with approval ofhislher supervisor, an employee may use hislher accrued vacation in units of less than one work week. Meals Shift employees shall be permitted to eat their meals during work hours and shall not be allowed additional time, therefore at City expense. Shift Premium Shift premium will be handled in accordance with the current Memorandum of Agreement between the City and the Union, Article VIII, Section 8 . . Jury Duty Time off for jury duty which oconrs on a regularly scheduled workday will result in the employee being credited with up to 12 hours worked, for pay purposes. Employees called for jury duty who are working the evening portion of the 12-hour schedule will be placed, for payroll and scheduling purposes, on the day shift for each scheduled day such employee is required to report for jury duty, and will not be required to work the evening 12-hour shift before or after being required to report for jury duty. However, such employee shall return to work on the day shift upon being released from such duty if fuere are at least four hours remaining prior to the end of the day shift. All other provisions of Article xn, Section 5, of the current Memorandum of Agreement shall apply. Page 60 of64 -I ---I APPENDIX E. IN-LIEU PREMIUMS 1. For employees in the following operations assigned to work schedules other than Monday through Friday, the calendar day will be. considered the holiday for premium pay of in-lieu scheduling purposes: Communications Waler QUality Control Animal Confrol Golf Course Utilities Services LimMill Open Space Electric System Operator 2. If Deceruber 24 and 31 faIl on Sunday, then the preceding Friday will be designated for purposes of excused time off, except in the case of Community Services staff who may be scheduled to work on Saturday, in which case Saturday will be designated for purposes of excused time off. For Open Space and Library personnel, designation of excused time off will be based on Park and Library schedules and employee preference. Page 61 of 64 APPENDIX F. COMMUNICATIONS DMSION PROMOTIONS L Prorootional opportunities within the Communications Division will be carried out in compliance with procedures set forth in Article VI, Section 5, of the Memorandum of Agreement between the City and SElU Local 521, execpt that; a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined as division seniority. b. Division seniority will be calculated from an employee's first day of employment in the divisio~, minus any unpaid leave. Page 62 nf64 APPENDIX G: SIDE LETTER OF AGREEMENT SIDE LETTER OF AGREEMENT ON CPA-SEIU CLERICAL ~TUDY 1. The parties will meet and confer over newly proposed clerical job descriptions. 2. Upon completion of the above meet and confer process, the City will issue any new or revised re-allocation letters to affected clerical employees within 15 working days. 3. The Union and/or affected employees will have 15 working days to appeal any reallocation to the Human Resources Direetor. " 4. Allocation appeals will be heard by the Human Resources Direetor or designees 'within a reasonable timeframe agreed to by the parties. 5. Decisions from such appeals will be issued by the City within 15 working days of each appeal. 6. The Union and/or affeeted employees will have 15 working days from receipt of the allocation appeal deeision to further appeal the matter to Binding Arbitration, pursuant to the provisions of Article XIX, Section 4, Step IV (Grievance Procedure) of the MOA. 7, The City and the Union agreed to conduct a clerical study in May 2004, The study was completed in May 2006. It is expected that classification and compensation changes will be made as a result of this study. The City and the Union are to meet and confer over the results of the study. Any changes to classification or compensation as a result of this process will become effective 511106. Page 63 of64 " .j I ! APPENDIXH Withdrawal of Unfair Practice Charges and Grievances Removal of Letters of Reprimand Upon ratification by the Union and approval by the City Council, Union and City agree to dismiss the following Unfair Labor Practice charges and grievances. The parties agree to take all necessary actions to complete such dismissals: • City v. SEIU.(SF·CO·21O·M) • SEIU v. City (SF-CE·690-M) • City v. SEIU (SF-CO-214-M) • SEIU v. City (SF-CE-704-M) • SEIU v. City (SP-CE-729-M) • Grievance #62534-521 • Grievance #59669-521 Upon written continuation that the charges and grievances above have been withdrawn, the City will remove Letters of Reprimand associated with the "involuntary furlough" (characterized by City as unlawftU strike). Page 64 of 64 -" I ATTACHMENT "B" ***NOT YET APPROVED*** RESOLUTION NO. __ RESOLUTION OF TIlE COUNCIL OF THE CITY OF PALO ALTO ADOPTING A COMPENSATION PLAN FOR CLASSIFIED PERSONNEL (SEIU) AND RESCINDING RESOLUTION NOS. 8657, 8658, 8727, 8800, . 8833,8848,8908,8909,8916,8951,8994 and 9047 The Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Pursuant to the provisions of Section 12 of Article ill of the Charter of the City of Palo Alto, the Compensation Plan, as set forth in Exhibit "A" attached hereto and incorporated herein by reference, is hercby adopted for Classified Personnel (SElU) effective July 1, 2010 through June 30, 2011. SECTION 2. The Compensation Plan adopted herein shall be administered by the City Manager in accordance "ith the Merit System Rules and Regulations. SECTION 3. revoked by the Council. SECTION 4. The Compensation Plan shall continue in effect until amended or The Director of Administrative Services is hereby authorized to implement the Compensation Plan adopted herein in his preparation offorthcoming payrolls. The Director of Administrative Services is further authorized to make changes in the titles of employee classifications identified in the Table of Authorized Personnel contained in the 201 0-11 budget if such titles have been changed in the Compensation Plan. SECTION 5. Resolution Nos. 8657, 8658, 8727, 8800, 8833, 8848, 8908, .8909, 8916, 8951, 8994 and 9047 are hereby rescinded. 1/ // /1 /1 1/ /1 100726 ,h &261386 1 ***NOT YET APPROVED*** SECTION 6. The Council finds that this is not a project under the California Environmental Quality Act, and therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: AlTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager Senior Asst. City Attorney Director of Administrative Services Director of Hnman Resources lO0726 sh 8261386 2 I CITY OF PALO ALTO COMPENSATION PLAN SEIU CLASSIFIED EMPLOYEES EFFECTIVE: Pay period including July 1, 20 I OM!l'}' 1, ;WOa Through June 30, 201!G9 1 COMPENSATION PLAN FOR THE CITY OF PALO ALTO Classified Personnel SECTION I. SALARY The llase sals!)' fer tae salary tallies sf tHe fellewiflg elassHieaiieIls will reaei ... e e€!lIit), adjllSlmeIlls as fellews efJ:@sti'lS 9130/06. Bli)'er 10.8% Assosiate BIfj'el' 1(:),8% Plffilie Safety Dispateaer 3.0% Lead Plffilie S~· Dispateaer 2.7B~ Desktell Teehaieian 2.7% Gra)'Jhie Desigaer 2. 7% B€j:llijJlIleat OfJeratar Lead 2.3% TFuek Driver 2.3% !llfe"t Sweeper Ollerater 2. 3 % Slfeet Sweeper Operator Lead 2.3 % Seaior PlarnieF 1.3% BlIilEiiag/Planniag Toehaieian 1.3% Tree Trimmer/Liae Gle8fer 1.1 % Tree TrimHlen'Liae Clearer Lead 1.1 % Tree Trimmer,'LiBe G1eaeer As&isl. 1.1 % Tree MaiBteI!anee A,,;sistaat 1.1 % Tree Maffit9IIaa-ee PerseR J .1 % Park Ranger U)% Sterekeeller ------------lQ"' . ..,6Q%o !lterekesper Leaa iU\% Assistaat Sterekeeper 0.6% Fleet Servisss GoerdiBater 0.6% EquijJrR9!lt Parts Teehaieian 0.6% LiaspersenlCallJe Splieer 0.5% LiaepersoolCallls Splieer Lead 9.5% Liaep~'FSeIl/Callle SfJlia9F T 0.5% LiBep_eRlesllls SfJlieer TI. 0.3% Researe6 Plamler 9.3% Assistal'lt Researee Planner -9.3% ASSgeiale Researee Plamler 9.3% Utility Rate Allal)'st 0.3% EHgiaeefiBg Teeh I 02% EHgiaeeriag Teeh II 1:)2% 2 F~gme6l'ing Teeh ill \).2% Landfill Tee1mieiaB Q.2% CeBldllJil'lity Ssrviees Offioer \).2% GeHrt LiaiS8ft Offiesr il.2% Crime "'dlaly"! \).2% PrOflerty Eviaeaee Teelmieisa il.2% A. Establishment of Salm The City Manager is authorized to make appointments to or advancements with the prescribed ranges upon evaluation of employee qualification and perf=ance. Merit advancements from the first salary stop to the second salary step shall be granted at six-month intervals and between the second and subsequent steps at one-year intervals if the affected employee has demonstrated continued improvement and efficient and effective service. For the purpose of determining step time requirements, time will commence on the fIfst day of the month coinciding with or following entrance onto a salary step. Stop increases shall be effective on the first date of the payroll period in which the time and performance requirements have been met. In the event that a downward adjustment of a salary range indicates a reduction in the established salary of an individual employee, the City Manager may if circumstances warrant, continue the salary for such employee in an amount in excess of the revised range maximum for a reasonable period of time. Such interim salary ranges shall be defmed as "Y rates." .... Salary moraases will Be as fellows: 1.1 % Base salary merease te !be salary tallies fer all elassffieatieas effeOtPf8 lJe/Q7. 2.35% 13ase salary mSTsase Is the salary tsales fer all elassifieatisfts effeetpiil7!tIQ7. 3.3.0% eass salary iBerease Ie tke salary tallies fer a±l elassifieatiefts effeetive 7/1/08. SECTION II. SPECIAL COMPENSATION Personnel covered by this compensation plan may receive special compensation as follows. Eligibility shall be in conformance with the Merit Rules and Regulations and Administrative Directives issued by the City Manager for the purposes of clarification and interpretation. A. Overtime, Working Out of Classification. and In-Lieu Holiday Pay Compensation for overtime work, working out of classification and scheduled work on paid holidays shall be paid as provided in the Memorandum of Agreement and in conformance with the Merit Rules and Regulations and Administrative Directives. B. Standby Pay, Call-Out Pay (1.) Standby Compensation 3 j I Employees performing standby duty shall be compensated at the daily rates established below: Periods Monday through Friday 4:30 p,m, -8:00 a.m, Saturday, Sunday, Holidays (2,) Minimum Call-Out Pay Compensation S50,00 per day $73,00 per day Employees not otherwise excluded from receiving overtime pay that are called out to perfonn work shall be compensated for at least two hours' pay from the time of the call -out for eacb occurrence at the appropriate overtime rate, The two-hour minimum does not apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two-hour minimum will apply, (3,) Night Shift Preminm Night shift preminm in the amount of $1.44 per hour shall be paid to employees for work performed between 6:00 p,m, and 8:00 a,m, A minimum of two hours must be worked between 6:00 p,m. and 8:00a,m, to qualify for the premium, Employees who regularly work night shifts shall receive appropriate night shift premiums, relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation. Night shift premium does not apply for overtime situations unless overtime is approved to replace an employee who would have other wise received a night shift premium, C. Tool AHowance (1.) Mechanics in Equipment Maintenance, Park Maintenance Lead, Golf Course Equipment Mechanic, Motorized Equipment Mechanic and Mobile Service Technician shall be paid an annual tool allowance of$610 annuaUyeffective July 1, 2005 (2,) All tool allowances shall be paid bi-weekly, D. Shoe AHowance/Foot Protection (I.) Safety Shoes The City shall reimburse employees 75% of the cost of job related safety shoes upon verification of such purchase by the employee, 4 (2,) Walking Shoes The City will reimburse employees 75% of the cost of job-related walking shoes for any positions necessary or required as det=ined by management including Meter Reader and Meter Reader-Lead, in an amount not to exceed $300,00 per year. A walking shoe is a durable work shoelboot (non-steel toed), is ankle supporting; oil, gas and slip resistant: waterproof or water resistant; lightweight and durable; and also provides hard snrface cushioning, (3,) Rainy Weather Foot Protection The City will provide rainy weather foot protection and one summer hat for the classification of Parking Enforcement Officer, E. Certifications (1,) The City will pay special registration andior certification fees as follows: Classification Reouirement I Bldg Inspect Spec CBO Certificate Cathodic Technician Corrosion Technician by the National Assoc. of Corrosion Engineers or equivalent Engineer Professional Engineer Cert, for 5th Step) jEquip Maint Serv Pers IF orklift Operator Cert, OSHA-approved) b Golf Course Maint Pers K;lualified Applicators' License ~ustW aste Inspector lBackflow Prevention Device TClitt:r !mspector Field Services, Utilities 101 (DOH) iInstalleriRepairer Series, Dl (DOH) fM'ech Unit Repairer IW elding Certificate Motor Equip Mechanic IEMS,ASE ~ndLead !POST Basic Dispatcher Public Safety Dispatcher !POST Fire Academy EMD il'OST Basic Dispatcher Public Safety Dispatcher, Lead POST Fire Academy POST Supervisioo EMD Sr Operator, WQC Grade ill Wastewater Treatment Plant Oper Cert. Surveyor, PW Licensed Land Su!,\,eyor Certified Tree Worker andior Tree Trimmer/Line Clearer Qualified Line ClearancelTree Trimmer Cert OSHA-approved) Tree TrimmerlLine Clearer-Lead Certified Arborist 5 Uti! Install/Rep series lPolyethylene Fusing Coo. Gas Operator Coo. (DOT) Veterinarian Tech ral Health Tech. Cert. iWater System 0l2erator I Grade DI -Wateri)ist.rilmtion Operator Iw ater System Operator II "Grade DII -Water Distribution Operator & Grade TIl I I-Water Treatment Operator iSenior, Water System Operator Grade DIll -Water Distribution Operator & Grade TIll Water Treatment Operator WQC Plant Oper I Grade I Water Treatment Operator COO. WQC Plant Oper II Grade II Water Treatment Operator Cert. WQC Plant Oper Trainee Grade I Water Treatment Operator Cert. Water Meter Cross-jBackflow Prevention Tester Cert. iConnection Tech (2.) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver's License in accordance with the California Vehicle Code and applicable laws prescribed by the Department of Transportation. (3.) The City will pay for Utility Installer Repairer personnel who obtain Welding Certification. Welding Certification is a requirement based upon assignment and may not apply to all Utility Installer Repairer personnel. The City agrees that all Installer/Repairers will have the opportunity upon request for a Welding Certificate course within a reasonable amount of time. (4.) Pipeline Welding Assignment The City will provide a 4% increase in base compensation to Utility Installer-Repairer, Installer- Repairer Lead positions that meet DOT certification requirements and are assigned these duties. Utility Inataller-Repairer and Utility Installer-Repairer Lead positions that fail to maintain current certifications will not receive the 4% increase. Positions assigned these duties and designated by IYfanagement to receive this premium will not exceed five (5) Utility Installer/Repairer and InstallerlRepairer Lead. (5.) If the certification is required in the job description, certification must be maintained. In accordance with their job description Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shall receive 4% increase to their base pay for pipeline welding. (6.) Building Inspector Upon successful completion of probationary requirements, the City will pay Building Inspectors a one (I) percent of base salary one-time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year Or two payments in a career. The Building Inspector Job Description specifies current requirements and the Union and City will 6 agree on a list of appropriate certifications eligible for the premium. Premiums will not be paid if certification is not maintaioed. (7.) Water and Wastewater System Operator Certification Employees classified io the followiog positions: Water Quality Control Plant Operators 1 and II, Senior Operator Water Quality Control, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job Series may be eligible to receive a I % base pay premium for certifications required by the Department ofHea1th andlor the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (1) percent for one (I) certification that is above those listed in their job description. An employee who qualifies for this payment shall be paid 1% of the employee's annual base salary once per year. The employee shall be responsible for providiog the City with written documentation that the employee has obtaioed and is maintainiog the qualifYiog certification on an annual basis. Premiums will not be paid if certification is not maiotaioed. Eligible employees should verifY certification will qualifY for the premium before attemptiog certification. The Union and the City will update the job descriptions to reflect ncwlyrequired certifications with no further adjustments to base salary. Payments will not exceed a maximum of one percent per year, and will take effect in the pay period followiog the verification of certification. All costs for obtaioiog certifications above what the job deseription requires will be the responsibility of the employee and may be paid for by using the City'S tuition reimbursement program. (8.) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification, Training to be provided by the City. SECTION m. Group Insurance A. Health Plan (I.) Active Employees The City shall pay premium payments up to the monthly medical premium for the Z"" most expensive plan (among the existing array of plans) except that for increases that go into effect after January 31, 2010 the City and participating employees will share equally the first ten percent (10%) of each premium increase that occurs for the plan io which the employee is enrolled at their respective level of enrollment (i.e. one party, two party, family). If a given iocrease exceeds ten percent (!O%), the balance of that inerease will be paid by the City. If sufficient increases occur that the employee portion of the premium for the plan in which he or she is enrolled equals ten percent (10%) of the total premium at the employee's level of enrollment, the employee's share of further premium increases shall be ten percent (10%) and the City's share shall be ninety percent (90%). City medical premium eontrilmtions will be prorated or part-time employees hired or newly assigned to a part-time work schedule on or after January 1, 2010 based on the number of hours per week the part-time employee is assigned to work. If PERS changes the plans it offers, the City and the Union will meet and confer over the City continuing to provide an equivalent benefit at an equivalent cost. 7 Effective February 1,2010, with premium increases that go into effect after January 31, 2010 the City shall contribute to its retiree insurance trust (the PERS retiree medical trust or its successor) an amount not less than the amount of premiums paid by active employees in the bargaining unit in the respective calendar year as a result of the sharing of the first 10% of each premium increase as provided above in this paragraph 1. The City shall make one contribution in the fiscal year to cover the entire amount payable to the trust under this paragraph as of the preceding December 31. Through December 31, 2009, the City will reimburse employees on PERS Care, who switch to PERS. Choice during the 2006 open enroliment period and remain in PERS Choice for maximum calendar year co-payments for unreimbursed costs incurred due to the difference between the PERS Care maximum ca1ertdar year copayment responsibility an the PERS Choice maximum calendar year copayment responsibility. The total payments per employee will not exceed $1,000.00 annually unless employee has a one dependent/family coverage in which case annual payment will not exeeed $2,000.000. The City has agreed to provide an annual amount of $50,000.00 to address these costs. If total claims for reimbursement exceed available funds, the City will use any unused tuition reimbursement funds budgeted for SEIU for these purposes. Any money left from each year will carry over to subsequent years of this contract. The City agrees to offer a program to active SEIU employees enrolled in PERSCare as of 9/1/06 who elect the PF-RS Choice health plan in which the City will reimburse the employee andlor dependents for any covered medical expense which exceeds the $2 million Lifetime Maximum Benefit. (2.) Health Plan Coverage for Future Retirees Hired Before Januarv 1, 2005 Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees' Medical and Hospital Care Act. Effective 111/07 the City's monthly employer contribution for each retiree shall be the amount necessary to pay for the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered to the SEIU employee (among the existing array of plans). However, the City contribution for an employee hired before January 1,2005 who retirees on or after January I, 2010·shall be the same contribution amountitmakes from time to time for active City employees, except that employees retiring after January 31,2010 but on or before December 3U1H1e 3G, 2010 shall not be required to pay any premium increase that first takes effect after January 31, 20 I O. For 2010, the contribution for dependents is 85% (90% in 2011) of the difference between the applicable "Employee and One Dependent" or "Family" maximum employer contribution for Active SEIU employees and the maximum monthly employer contribution for "Employee Only" coverage. This contribution for dependants will increase annually by 5% of the difference between the single party premium and the two or family member premium, until such time as the amounts are equal. (3.) PERS-Health Benefit Vesting For Future Retirees Effective Januarv 1, 2005 The CaIPERS vesting schedule set forth in Government Code Section 22893 will apply to all 8 SEIU employees hired on or after January 1,2005. Under this Jaw, an employee is eligible for 50% of the specified employer health premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional year of service credit will increase the employer contribution percentage by 5% until, at 20 years' service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for family members will be 90% of the specified employer contribution. The City of Palo Alto's health premium contribution will be the minimum contribution set by CalPERS under Seetion 22893 based on a weighted average of available health plan premiums. (4.) Coverage for Domestic Partners Domestic Partnership Registered with the California Secretary of State. Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Registered with the California Secretary of State. Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the maximum monthly City employer contribution for one-party coverage under the CalPERS Health Benefits Program for SEIU members. Evidence of premium payment will be required withrequcst for reimbursement. (5) Alternate Medical Benefit Program At City option during the term of this Plan and if otherwise available, the City may offer an ineentive payment in lieu of City-paid dependent or family medical coverage for those employees who voluntarily decline dependent coverage. If a regular employee and/or the employee's dcpendent(s) are eligible for medical insurance through any other employer-sponsored or association sponsored group medical plan, the employee may elect coverage under this alternative medical insurance coverage through the other employer- sponsored or association plan and waives bislher right to the City of Palo Alto's medical plan insurance coverage for same individuals. Employees electing alternative coverage and waiving City coverage will receive cash payments equal to approximately half of the "average monthly premiums"for their medical insurance coverage. "Averaged monthly premiums" are the average of the Kaiser HMO, Blue Shield HMO and PERS Choice PPO premiums of the employee's City medical covt,'l'age available through the CalPERS Health Benefits Program. The rates for 20GelQ are as follows: One Party: Two Party: Family: $269.77~ $528.814l4.OO $701.41~ 9 -; I The rate~ for 20W 11 are as follows: One Party: Two Party: Family: $301.00~ $603.004@,OO $783.00~ If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside ofPEMHCA, the City's total liability for enrolled employees and retirees and their eligible family members Shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The City will meet and confer with the Union over the impact of such change on matters within the scope of representation before implementing the change. B. Dental Plan The City shall continue to provide a self-funded dental plan for the benefit of City employees and their eligible dependents. The City will pay 100% of the required premiums for the program except that benefits for regular part-time employees will be prorated as follows: (1.) Employees hired after January 1, 2005, who will work less than full time, will receive prorated premium costs for dental benefits in accordance with hislher percentage of a full- time work schedule. Part-time employees currently receiving full benefits will not be impacted. (2.) The maximum benefits per calendar year shall be $2,000 effective January 1, 1990. Effective July 1, 2001, dental implants in conjunction with one or more missing natural teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (VCR.) (3.) Effective 111107 the City will add composite (tooth colored) fillings in dental plan posterior teeth (4.) Effective 111107 the City will pay up to $2000.00 for Orthodontia coverage. C. Basic Life Insurance The City shall continue the basic and supplemental life insurance plan as currently in effect for the term of this compensation plan. D. Long Term Disability Insurance The City shall continue the long te!]ll disability insurance plan currently in effect for the term of this compensation plan, 10 For Plan A the benefit is 66 and 2/3% of pre-disability earnings to the maximum benefit level of$4000.00 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first S6000 of monthly salary, less a credit of $11.17 per month to be paid by the City. For Plan B, the benefit is 60o/00f pre-disability earnings up to the lllllXimum benefit level of $1800 of month. Employee coverage is subjeet to a voluntary payroll deduction of the insurance premium applicable to the first S2000 of monthly salary for Plan B; the City will pay premiums in excess thereof. The City will pay up to $17.50 per month toward long term disability insurance premiums for those employees without eligible dependents covered under the health insurance provisions. E. Vision Care The City shall continue to provide a self-funded vision care program for the benefit of City employees and their dependents. The City shall pay 100% of the required premiums for the program. The benefits of the vision care program shall continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan. };'. Dependent Care Assistance The City shall continue to provide a Dependent Care Assistance program for employees that complies with Code Sections 125 ofthe Internal Revenue Code. G. Retirement (1.) The City will continue the present benefits under the Public Employees' Retirement System 2.7% at age 55 formula for employees hired before January 1, 2010 or the later effective date of the 2%@60 formula for new hires as described herein. The City shall amend its contract with CalPERS to provide such employees hired on or after the effective date of the CalPERS amendment with the CalPERS retirement formula two percent (2.0%) offmal salary at age sixty (60). The City will implement this change on July 17,2010. Employees who retire and were employed by the City on or before April I, 1977, and spouses of deceased employees who were employed by the City on or before April I , 1977, shall continue reductions in utility rates. All retired employees and spouses of deceased employees shall also have residential privileges at City libraries; refuse disposal area, golf course and swimming pools. (2.) Effective June 30, 2010, the PERS employe~~share contribution rate of employees under the 2. 7%@5 5 pension formula shall change to five and three quarters percent (5.75%) and the City's contribution shall simultaneously change to two and one quarter percent (2.25%) of pay For employees hired on or after January 1, 2010 or such later date as the 2.0% @60 formula is implemented by the City, as provided in Section I above, employees covered by that formula shall pay five percent (5%) of pay toward the seven percent (7%) employee contribution and the City shall pay two percent (2%). However, if PERS laws or rules require that contribution rate of employees toward the respective employee contributions under the 2%@60 and 2.7%@55 formulas must be the same, the uniform employee contribution rate shall be six percent (6%) with the City paying the remaining percentage for the applicable formula. 11 (3.) Conversion for Final Tw!:'iye Months Prior to Retirement Notwithstanding Section 2 above and pursuant to Government Code Section 20615.5, upon filing a notice of retirement, the amount of the City-paid PERS employee contribution will be converted to a salary adjustment of equal amount on a one-time irrevocable basis forthe final twelve months innnediatelyprior to retirement. For this fmal twelve-month period the employee shall pay PERS employee contributions. Upon receiving an employee's notice of retirement the City-paid PERS employee contribution that will be converted to a salary adjustment of equal amount on a one-time irrevocable basis for the fmal twelve months innnediately before retirement will be the amount of the applicable employee-paid contribution set forth in Section 2 above. For this final twelve- month period the retiring employee on the 2.7 at 55 formula shall pay the full percentage of the applicable PERS employee contributions (8% for employees on the 2.7 @55 formula and 7% for employees on the 2.0% at 60 formula). SECTION IV. Other Benefits A. Training Programs (1.) Employees assigned by the City to attend meetings, workshops or conventions of their professional or technical associations shall have their dues and reasonable expenses paid by departmental funds and shall be allowed to attend such workshops, meetings and conventions on paid City time. (2) Health Club/gym membership reimbursement of these expenses is taxable to the employee. (3) City will reimburse for travel, meals and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee's skills. Per City Policy and Procedure 1..02, the Pre-Travel Authorization Form should indicate expenses that will be paid. B. Vacation Cash Out Once each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours, to a maximum of 120 hours, provided that the employee has taken 80 hours of vacation in the previous 12 months. C. Bilingual Premium $35 per pay period shall be paid to a bilingual employee whose abilities have been determined by the Human Resource Director as qualifying to flll positions requiring bilingual spesking andlor writing ability when the employee regularly performs such duties. The Human Resource Director will determine the number, timing, location and duration of the assignments receiving the additional pay provided herein and which languages are needed. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the designation of positions 12 will be referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. D. Commute Incentives and Parking Effective August I, 1994, represented employees who qualify may voluntarily elect one of the following commute incentives: Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Centcr Garage parking permit. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage. Public Transit. The City will provide monthly Commuter Checks worth the value of: $40 for employees traveling two or more zones on Caltrain; $40 for employees using the Dumbarton Express, BART, the ACE train or a commuter highway vehicle; $35 for employees traveling within one zones on Caltrain; $35 for employees using VTA, and other buses. These checks are pre-taxed and may be used toward the purchase of a transit pass. Carpool. The City will provide $30 per month (taxable income) to each eligible employee in a carpool with two or more licensed drivers. Vanpool Program. The City will provide Commuter Checks worth the value up to $60 to each employee voluntarily participating in the Vanpool Program. These vouchers are pre-taxed and may be used toward payment of the monthly cost. Employees must fulfill the basic requirement of the Employee Commute Alternatives Program to qualify. Bicycle. The City will provide $20 per month (taxable income) to eligible employees who ride a bicycle to work Walk. The City will provide walker $20 per month (taxable income) to eligible employees who walk to work 13 j i -j • ATTACHMENT "C" 2010-2011 MEMORANDUM OF AGREEMENT' City afPalo Alto and Local~521. SEIU, AFL CIO, CLCCTW PREAMBLE- This Memorandum of Agreement {hereinafter "MOA"is entered into by the City of Palo Alto (hereinafter referred to as the "City") and Loca1521 Service Employees International Union, CTW (hereinafter referred to as the "Union''). For the purposes of this MOA "employee" shall mean an employee assigned to a classification within the SEIU General Employee bargaining Unit. ,This MOA is pursuant and subject to Sections 3500-3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit Rnies and Regulations. ARTICLE I -RECOGNITION Section I· Recognition. Pursuant to Sections 3500·3510 of the Government Code of the.State of California and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations, the City recognizes the Union as the exclusive representative of a representation 'unit consisting of all regular full and part-time employees in the classifications listed in Appendix A attached hereto. This unit shall for purposes of identification be titled the SEIU General Employees bargaining unit (hereinafter "General ' Unit). Section 2 • Protection of Unit. No supervisor will perform the work of an employee in the General Unit provided that there is an employee available who regularly performs such worle. This does not preclude a supervisor from performing work ofa minor nature or during bona fide emergencies or on a standby status when willing and, qualified unit employees do not live within a reasonable response time of their work location. Supervisory personnel shall he called out to perform unscheduled work only when SEID General unit employees are unavailable to perform such work or in cases of bona fide emergencies as defined in Article VIIT, Section 2. fu cases of bona fide emergencies, SEIU General unit employees shall be called out to complete the necessary work after the immediate emergency situation has been reasonably contained. ARTICLE n -N'O DISCRIMINATION Section 1 • Discrimipation. 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. Section 2-Right to Join the Union. The City and the Union agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws, Pag~l ot64 --i ARTICLE TII-UNION SEct'RITY Section 1-Notice. When a person is hired in any of the covered job classifications, the City shall notifY that person that the Union is the recognized bargaining representative for the employee and give the employee a current copy of the Memorandum of Agreement. When a group employee orientation is held for new employees of the bargaining unit, a union representative may make a presentation to such bargaining unit employees for the purpose of explaining matters of representation. The presentation shall not exceed 15 minutes. Section 2 -Agency Shop. (a) Every employee in the bargaining unit covered by this Memorandum of Agreement shall; (1) remain a member in good standing of the Union; or (2) pay to the Union a.monthly service fee, to be set by the union in accordance with applicable law, in an_amount not to exceed the standard initiation fee, periodic dues, and generatassessments of the organization; or, (3) in the case of an employee who certifies that he/she is a member of a recognized religion, body or sect which has historically held conscientious objection to joining or financially supporting public employee organizations, pay a charity fee, equal to the service fee, to a non-religious, non-labor charitable ftm.d 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 byJhe City and the Union): United Way of California Community Health Charities Environmental Federation of California Union members may declare their intention to terminate Union membership by registered letter, return receipt requested, to the Director ofHurnan Resources and_the Union oniy during the 30-day period between 60 and 90 days before expiration of the MOA. (b) Employees who are newly hired into or who join the bargaining unit shall elcct one of the above payment deduction options by completing and submitting the Employee Election form within thirty (30) calendar days of being hired into a classification_covered by this MOA. (c) To qualifY for deduction of the Charity Fee, the employee must certif'yto the Union and City that helshe is a member of a bona fide religious body or sect that has historically held conscientious objection to joining or financially supporting public employee organizations. The employee is required to submit to the City and the Page 2 of 64 . j , , -4 , --i 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. I (d) The deductions in this Section shall not apply during any period where an employee is in an unpaid statns. I (e) Involuntary Service Fee Deduction Process: The City shall deduct a service fee from the salary of each bargaining unit member who has not authorized a dues deduction, service fee deduction or charity fee in 'lVTiting within the time stated in this Section, above. The Union certifies that it has consulted with knowledgeable legal counsel and has thereby determined that this involuntary service fee deduction process satisfies aU 'constitutional and statutory requirements. (f) Agency shop may be rescinded only in accordance with the provision of state law. (g) 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 the Agency Shop Ap:angement. r (h) Sign-up forms for deduction of union dues, service fees and charity fees shall be provided by the Union and approved by the City. Section 3 -Documentation. The City shall supply the Union with: (a) arnonthly electronic file of the names, member/fee payer designation" addresses, classifications, monthly base pay, pay period number, Committee on Political Education (COPE) listed separately and last four digits of the Social Security number of all bargaining unit employees except those who file written notice with the Human Resources Department objecting to release of addresses, in which case information will be transmitted without address; and (b) a list of bargaining unit new hires, terminations and retirements which occurred during the previous month. The Union shall supply the City, and as applicable: the employees, with: (a) documentation required by Govemment Code Section 3502.5 (1)., Page 3 0164 Section 4 -Payroll Dt@tQtion. The City shall deduct Union membership dues, service fees, charity fees, and any other mutually agreed upon payroll deduction, which may include voluntary COPE check-off, from the bi-weekly pay of bargaining unit employees. The dues/fees deduction must be authorized in writing by the employee on an authorization fonn acceptable to the City and the Union, except as provided in Section2(e), above. The dues deduction form shall include a check box for those employees who wish the Union to receive notification in the event of unsatisfactory work:, conduct, or disciplinary action taken pursuant to Article xx. City shall remit the deducted dues or fees to the Union as soon as possible after deduction. I §ection 5 -Bulletin Boards and Departmental Mail. The UniQn shall have access to inter- office mail, existing bulletin l:Joards in unit employee work areas, and existing Union-paid telephone answering device for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, results of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission: The Union may send email messages only for the purposes set forth above. The IT Department will malntain the SBIU list and keep it current. The Union access to email is based on the following conditions: 1) emaiIs to the SBIU 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 emaiIs may be sent by the SEIU Chapter Secretary. Section 6 -Acoess 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 recrniting of members or collecting of dues, and the representative must notilj the Human Resources Department Office prior to entering the work location. Section 7 • Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during lunch periods or other non-working hours. Such meeting places will be made available in conformity with City's regulations and subject to the limitations of prior commitment. Section 8 -NQtification to the Uniol!. (a) General. The Union shall be infonned 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. (b) Change in City's Financial Situation. Should the City's financial situation deteriorate and the possibility oflayoffs result, the City Manager will give prior notice to and consult with the Union prior to recommending any layoffs to the City Council. Page 4 of64 1. (c) Vacancies and Temporary Personnel. The City agrees to notify SEIU Local 521 in writing when any irregular, temporary, hourly, provisional, special or extra help employee who consistently performs work typical of the SEIU Local 521 bargaining unit exceeds),OOO,hours of work withina IS-month period. The City agrees to notifY SEIU Local 521 in writing when any position covered by this agreement is left vacant for more than 60 days. Through a separate meet and confer process, the City and Union will develop a way to convert long term, ongoing temporary-hourly positions to regular status. The City and Union will meet and confer l'llgarding 'wages, benefits and terms and conditions of work. Section 9 -Union Logo. All materials and documents produced on Itek and metal plates, by the City print and reproduction shop, shall carry the Union label on the inside of covers or title pages in accordance with customary printing trades practices. Section 10 -Public Notice. The City shan make available to the Utrion 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 11-Use of Agency Reports. Upon request, the City sha:ll provide to the Union reports by depertment on the use of agency temporaries filling representation unit vacant positions, or doing work similar to that of representation unit classifications. Section 12 -Job Postings. The City shall incorporate the requirements of this Article when publicizing job announcements for classifications covered by this Memorandum of Agreement. Section 13 -Contracting Oirt. The City through the labor management process will kept the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SElU 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 nntifythe 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 llours. Within the ninety (90) day period of contracting out, both parties may offer alternatives to contracting out and meet and confer on the impact of such contracting out of a bargaining unit employee work. The City will notifY the Union in writing when contracting out work which has been traditionally performed by bargaining unit workers, where such contracting out is expected to replace a laid off bargaining unit position that has been eliminated within_ninety (90) days prior to the date of the planned contract work. When feasible, the City will provide such notice prior to the beginning date of the planned contract work. The City will meet with the Union upon request to discuss alternatives. This provision does not apply to the filling of temporary vacancies of twelve (12) months or less duration. The City will provide the Union with a biannual list by depertment of all contract workers or vendors who are contracted by the City who Page Sof64 -I , perfonn work for the City. The City will make a reasonable effort to identify the names of the vendors on the list and the nature of the work provided by each vendor. ARTICLE IV -STEWARDS Section I -Union Officers. The Union agrees to notify the Director of Human Resources of those individnals 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 ofthe steward. . Section 2 -Number of Stewards. The number of stewards designated by the Union: at a given time shall not exceed thirty-five (35). Section 3 -Release Time. It is agr~ed that, as long as there is prior notice as specified below to the Supervisor with no disruption of work, stewards shall be allowed reasonable release time away from their work duties, without loss of pay, to represent a unit employee or employees on grievances or matters within the scope of representation, including: (a) A meeting of the steward and an employee, or employees of that unit related to a grievance. (b) A meeting with Management. (c) Investigation and preparation of grievances. Grievances may be transmitted on City time. All steward release time shall be reported on time cards. Section 4 -Advance Notification Before Leaying Work Location. The Union agrees that the steward shall give no less than one (1) full business day advance notification to his/her supervisor before leaving the work location, except in those cases involving an unforeseeable circumstance that requires immediate union representation where advance notice cannot be. given or when the relevant supervisor otherwise allows less notice. A supervisor may deny such a request for release from duty if the effIJlleyee steward is needed to ensure timely real time availaaility delivery of the-services that the efll:llleyeesteward is provid~ for the public or internal City customers and l!!l.other employees-arewho Het QVaHaele ea a straight time llaBis that nonnally provides such il~mgeservices is not available on a straight time basis to relieve the steward, or in a bona fide emergency. If such denial occurs, the union may request the release of another of its designated stewards to perfonn the representation duties involved. Such request shall be processed in accordance with the tenns set forth in this section exc~t that the requirement for a full business day advance notice to the replacement representative's supervisor shall not apply. Nothing herein shall preclude the City from rescheduling a meeting it bas scheduled, to facilitate the attendance of a steward who has n;'quested Page6of64 release if, .in the City's judgment, such change can be undertaken wilhout undermining the objectives of the m~eting. Section 5 -Release Time, Three Union officers, who are City employees, shall be allowed a reasonable amount of release time off for purposes of meeting and conferring or meeting and consulting on matters within the scope of representation. All such time will be reported on timecards. Section 6 -Designated Union Space. Union stewards may utilize space in assigned desks for storage of Union materials. In the event stewards are not assigned desks the City will provide locker or other mutually agreeable space for storage of Union materials. Section 7-Union Officers and Release Time. Six union officers, who are City employees shall be allowed a reasonable amount of release time off for monthly LaborlManagement Meetings. ARTICLE V -REDUCTION IN FORCE I Section 1-Attrition. In the event of reductions in force, they shall be accomplished wherever possible through attrition . . , Section 2 -Advance Notice. When the City determines thatlayoffs are innninent 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 . I seniority list with notice of layoff. I Section 3 -Order of Layoff. If the work force is reduced within a department, division, or office for reasons of change in duties or organization, abolition of position, shortage of work or funds, or completion of work, employees \vith the shortest length of service will be laid off first so long as employees retained are fully qualified, trained, and capable of performing remaining work Length of service for the purpose of this article will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Length of service ties will be determined by lot in a method agreeable to both parties. Employees laid off due to the above reasons will be given written notice at least thlrty days prior to the reduction in force. A copy of such notice will be given to the Union. Such employees shaH be offered priority employment rights to regular positions which are requisitioned and for which the employees are qualified for . a period beginning with notification and ending sixty (60) days following the reduction in force. Employees transferred or reclassified under this section will be assigned to the step in the new classification salary range closest to the employee's salary range at the time of reclassification. Employees laid off pursuant to this section shall receive the balance of all regular City compensation owed and severance pay equal to one month's sa1ary at the employee's final rate of pay at tennination. This does not include any amounts payable under Article V, Section 6, or PERS contribution refunds, if any. Page 10f64 .I Section 4 -SenioritylBumping Rights. Employees identified for layoff who have seniority (bumping) rights to their current or previously held classifications within the representation unit must declare their intention to exercise these rights in writing and submit to the Human Resources Department within seven (7) working days after written notification of layoff, otherwise bumping rights will automatically terminate. Bumping may occur within the representation unit, only to the lea,,'i senior incumbent of the current or a previously held classification. To bump, the employee must be fully qualified, trained, and perfonn all work in the. For purposes of this section of the Agreement. the term "working days" shall mean Mondays through Fridays, exclusive of holidays. Section 5 -Re-Employment Ust. The nemes of employees laid off or who through bumping changed classification in accordance with the provisions of this Article shall be entered upon a re-employment list in seniority order. The employee with the greatest seniority on the re-employment list, including those who exercised their bumping rights, shall be offered reinstatement first. Such notice of reinstatement sh.a1l be in writing with a copy to the employee, Union and Chapter Chair. If a laid off employee waives reinstatement or fails to respond within ten (10) working days of receipt of the notice, the employee sh.a1l be removed from the reemployment list. The person with the highest seniority including those who exerciSed their bumping rights on a re,employment list for a particular classification when a vacancy exists in that classification shall be offered the appointment. Nemes shall be carried on a re-employment list for a period of two (2) years from the date of separation from City services ot change of classification through bumping. Upon re-employment within the two-year period, tile employee's hire date of record at the time of layoff will be reinstated. Section 6 -Sick Leave Balances. Employees laid off pursuant to Section 2 who are reinstated to a regular position within sixty (60) days shall retain the sick leave balance they had at the time of layoff, unless they have received a sick leave payoff in accordance with Article XII. . Section 7 -Hourly Employees Perfonning Duties. No representation unit employee will be laid off or remain on a re-employment list when hourly employees are performing substantially all the duties of the classification of the employee receiving a layoff notice or on a re-employment list. This provision shall not be applied to hourly positions which have been traditionally used for seasonal and part-time work: ARTICLE VI -PERSONNEL ACTIONS I Section 1 -Probation. Each new regular or part-time employee shall serve a probationary period of six (6) months, (twelve (12) months for the classifications of Public Safety Dispatcher, Chief Public Safety Dispatcher, Animal Control Officer, Communications Tech, Chief Communications Tech, Communlty Services Officer, Court Liaison Officer, Crime Analyst, Police Records Speciallst, Property Evidence Technician, and Veterinarian Tech), commencing with the fust day ofhis/her employment. The probationary period shall be regarded as a part of the testing process and shall be utilized Page 8 of 64 , -i -~ for closely observing the employee's work, for securing the effective adjustment of a new employee to hislher 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 the third month. In the event of termination prior to successful completion ofthe probationary period, such terminated employee shall be given written notice ofllislher 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 me 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 through the grievance procedure but, in the event of disagreement over content, the employee may request a review of the evaluation with the next higher level of Management, in consultation with the Human Resources Department. For purposes of this review, the employee may be represented by the Union. Decisions regarding evaluation appeal shall be made in writing within ten (10) working days following the review meeting. Section 3 -Personnel Files. Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Union representatives. An employee or the Union shall be allowed, upon reasonable request, copies of materials in an employee's personnel file relating to a grievance. Records of disciplinary actions, including references in a performance evaluation, shall be removed from a personnel file upon written request by the employee or in the normal process of file review after a period of three years, or sooner as mutually agreed by Management and the employee. Section 4 -Release of Information. The City will only release information to creditors or other persons upon prior identification of the inquirer and acceptable reasons for the inquiry. Information then given from personnel files is limited to verification of . employment, length of employment and verification and disclosure of salary range information. Release of more specific information may be authorized by the employee. Section 5 -Promotional Opportunities. (a) Posting. Promotional opportunities for classifications within the representation unit will lie posted for at least ten (10) working days (Monday through Friday) prior to selection. Outside recruitment may be used for promotional openings and may begin at the time of posting, or any time thereafter. If, however, there are three or more P~ge 9 of64 qualified internal candidates within the department where the vacancy occurs,. and those candidates successfully complete the selection process, outside candidates will not be considered. (b) Internal Candidate Eligibility. All non-probationary representation unit employees are eligible to apply for posted promotional opportunities, except that Management may waive this requirement for all probationary employees within the department where the promotional opportunity occurs. (c) Selection. The selection procedure for each promotional opening will be determined and administered by the Human Resources Department in consultation with the requisitioning department. Selection procedure and job description mformation will be available at the Human Resources Office at the time of posting. Efforts will be made to standardize tests and procedures where standardization is feasible and appropriate. Any tests used shall be reasonably predictive of success in the classification, and tests not be biased with respect to race, sex, sexual orientation, religion, creed, political affiliation, color, national origin, ancestry, or age. Selection procedures may include any or all of the following phases: (1) Application. Both inside and outside candidates must complete a City of Palo Alto application form specified by the Human Resources Department. Applications must be submitted to the Human Resources Office. (2) Screening. Applications will be screened by the Human Resources Department to ascertain whether candidates meet minimum requirements as outlined in the job description. Internal candidates deemed not to meet minimum requirements may submit additional qualification information writing within three working days of notification of requirement deficiency. . (3) Performance Testing. Performance tests, such as typing, machinery or vehicle operation, skills demonstration, physical agility, etc., will be qualifying.· Pass-fail points will be announced in advance for qualifying tests. If requested in writing prior to the test, performance test may be witnessed by Union steward. (4) Written Tests. Written achievement or aptitude tests will be qualifying. Pass-fail points will be announced in advance for qualifying tests. (5) Interviews, Appraisals. Interviews may be conducted individually or by interview boards and will be qualifying. Interview boards shall be composed of qualified and unbiased people. Where interview boards are used, Menagement will include at least one bargaining unit employee on each board. If individual interview or an interview board is used, a majority of the individuals or board members must recommend a candidate in order fur the candidate to qualify for appoin1ment. Performance appraisals written by candidates' supervisors may be used as indicated in the selection procedure. Page 10 of 64 (d) Recommended Candidates. Candidates who successfully complete all phases of the selection procedure will be recommended to the appointing authority. (e) Seniority. Seniority, for purposes of this Article, will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Seniority ties will be determined in favor of the employee with the lowest employee number last four digits. Exceptions to this subsection may be established by mutual agreement on a departmental or divisional basis. Such exceptions are listed in Appendix G. (±) Appointment. The appointing authority will make appointments from among those . recommended candidates who are most qualified as determined by objective review of selection procedure results and background materials. Where appointments are made from only internal candidates who are equally qualified as determined by objective review of selection procedure results and past performance, seniority will be the determining factor in promotional appointments. (g) Violations. Any violation of this Article may be appealed to the Human Resourees Director in Step m of the grievance procedure. Section 6 -Rights, Unit employees applying for a vacant equal or lower paying position sha1Ihave the same rights as unit employees applying for a promotion. Section 7 -Apprentice Positions. (a) The City shall establish apprentice positions wherever feasible. Length of apprenticeship, tYPe of training, and pay levels shall be by mutual agreement. Where possible, apprentice positions will underfill regular positions so that incumbents may automatically progress to the classification for which they are training upon successful completion of apprenticeship. The City will meet and confer with the Union before adding any new apprenticeship programs during the term of this agreement. All apprenticeship programs are listed in Appendix B. Section 8 -Rotation. fn assigning employees to regular or special shifts, transfer, standby, overtime, or vacation selection, ability to perform the work, length of service andlor equitable rotation shall determine the assigmnents, fn accordance with this provision, more definitive rules may be arranged by mutual agreement oithe Union and individual City departments. ARTICLE vn -PAY RATES AND PRACTICES Section 1. Salarv. The base salary rates and ranges for job classifications covered by this bargaining unit are as set forth in Appendix A attached hereto. Section 2 -Step Increases. Merit advancements from the first salary step to,the second salary step shall be granted at six-month intervals and between second and subsequent steps at one-year intervals, if the affected employee has demonstrated continued improvement and efficient and effective Page 11 0164 service. For the purpose of detennining step time rcqlrirements, time will commeJ;lce on the frrst day of the month coinciding with or following entrance onto a salary step. Step increases shall be effective on the first day of the payroll period in which the time requirements have been met. SectiQ!l 3·-Working Out of Classification. The term "working out of classification" is defmed as a Management authorized full-time assignment to a budgeted 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: (a) Employees appointed to an "out of classification" will receive acting pay within the range of the higher classification beginning the frrst day of the assignment and shall be paid for all hours worked in the higher classification provided employee works a minimum off our (4) hours. Where out-of-class appointments last for more than 90 days, and whenever feasible, out-of-cfass appointment will be rotated among qualified interested employees in the work group. Employees will receive 5% premium pay for all assigned out of class pay for work within SEn; Classifications with the exception oflead assignments where the out of class pay will result in a 7% premium pay. Out-of-c1assification provisions do not apply to work assignments performed in connection with specific predetermined apprenticeship or training programs, or declared conditions of public peril andlor disaster. Section 4 -Classification Changes. (a) During the course of this agreement, the Union and affected employees shall be notified in advance of any contemplated changes in classification description, wage range or steps. Such changes shall be subject to the meet and confer process. Such meet and confer process shall be concluded within no more than thirty (30) days following delivery of the City's notice to the Union. If the Union and the City cannot reach agreement on the appropriate pay level from ajob so reclassified, the Union may, within ten (10) City business days followiog the conclusion ofthe meet and confer process described above by delivery of written notice to the Human Resources Director, refer the dispute over the proposed wage range or steps to arbitration at Step N of the Grievance Procedure set forth at Article XIX of this Memorandum of Agreement. Section 5-Reclassification Reguests. (a) An employee or hislher representative may request in writing a re-evaluation of hislher job based on significant pennanent changes in job content or significant discrepancies between job content and classification description. The request must be in writing, contain justification and may be made only on an annual basis during the period of September 10 through October 10, A statement by management that a job reevaluation request will be submitted with the departmental budget does not relieve an employee froni the responsibility of submitting hislher own request during this Page 1Z of64 I. period. The HUIl1all Resources Director or his or her designee will initially respond to such requests within ninety (90) calendar days by notice to the employee and the union; however, this timeline may be extended if necessary. Such response shall include any reclassification to a different classification or changes in description that the City believes are warranted and any related changes in applicable pay range or steps. Ifmeetings are held, the employee may request representation. If a reclassification is approved and results in an increase in salary, it shall be retroactive to the date the Employee or Union fIled the request for the reclassification. (b) If the employee or Union disagrees with the accuracy of the description of duties resulting from the study conducted pursuant to subsection (a) of this Section or with the wage range or steps assigned by the City as a result of the study; the employee or Union may, within ten (10) City business days of delivery of notice of such determination, appeal such decision under step IV of Article XIX, Grievance Procedure. (c) In a dispute under Section 4(a) or section 5(b) above, the arbitrator shall render bis or her decision on the appropriate wage range or steps within twenty-one (21) days after the initial hearing dare. The same time line will be observed for disputes over the accuracy of the revised classification description. The parties will notify the arbitrator of this deadline at the time of the arbitrator's selection. In reaching a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator shall base his or her award on the factors traditionally taken into account in the establishment of compensation; When deciding a dispute over the accuracy of the revised classification description under section 5(b) above, the arbitrator shall identify the modifications of the pre-existing classification necessary to accurately reflect the permanent changes, if any, that have been implemented. Upon receipt of the arbittator's award, the City shall implement the revised classification and wage range. or steps as provided in the award except as provided under subsection 5( c) of this section below. Not withstanding an arbitrator's award pursuant to any appeal process, the City retains the right to forego implementing the changes and the proposed changes shaH revert to the status quo as it existed before those changes in duties occurred or were proposed. (d) An employee may submit a request for reclassification for the same classification no more than once every twenty~four (24) months. . Sectio.q6 -Advance ofVacatiQJl Pay. Vacation pay shall be made available in advance of regular payday, provided that employee requests such advance in writing to the Finance Department at least two weeks prior to bislher vacation date. The employee's supervisor mllst verifY vacation date on the request. Section 7..::Assignment to a Lead Polrition. All vacancies in lead positions shall be filled in accordance with Article VI, Section 5. The pay range for the lead position shall be seven percent above the pay step of the highest paid employee on the crew. Departmental exceptions for filling lead positions on a rotational basis for ttaining and Page 13 of64 , "1 I development purposes may be arranged by mutual agreement of the Union and individual City departments. Current exceptions are listed in Appendix C. Section 8 -Realignments and Survey Data Base. (a) Management and the Union have agreed to a compensation survey data base structure which identifies specific benchmark classifications for job families, classifications within the job families of each benchmark classification, survey agencies and survey classification matches. Survey Cities include: Alameda Berkeley Daly City Fremont Hayward Mountain View Redwood City San Jose San Mateo Santa Clara S. San Francisco . Sunnyvale If. in the opinion of the Human Resources Director (or designee), the employer list will not permit the production of a survey report that includes data from at least four (4) employers that employ employees in a classification comparable to the classification surveyed by the City, the Human Resources Director (or designee) will attelllpt to identify the other employers inIhe relevant recmitment area that employ workers in a comparable classification so that data from at least five (5) surveyed employers wilt be included in the study. iffeasible. Such employer may include any public or private employer. . The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job claasifications compares to that paid by other employers. The City will update the survey database and send the Union a copy six weeks before expiration of this agreement. This survey will be considered in connection with special adjustment proposals in successor agreement negotiations. By agreeing to a survey database, neither Union nor Management is 1ll1der obligation to propose or agree to special adjustments. Within ninety (90) days after the ratification and signing of this Memorandum of Agreement by the Parties hereto, the City will conduct a compensation survey for the following classifications and r~e results to the Union: Linepel'son/Cablesplicer-Apprentice Lineperson/Owle§plicer LinepersoniCablesplicer-Lead Compliance Tech Compliance Tech-Lead ARTICLE vrn -BOERS OF WORK, OVERTIME, PREMIUM PAY SectiQn 1-Work Week and Work Day. The standard workday for regular 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 PBge140f64 , ; --; i -, hours to be worked within a maximum of ten for four days with a fifth day of four hours (four and one·haIf day work week); or, within a fourteen-day period, nine hours to be worked within a maximum of ten hours for one day and eight hours to be worked within a maximum often hours for one day, with the work week scheduled to begin so that forty hours are worked within each seven days_of the fourteen-day period (9/80 plan, with forty-hour work weeks), or any other schedule that results in a 40-hour work week, or fits within the parameters of an FLSA 2080 Plan. The "9/80 plan" may not be used in any application that requires entitlement to FLSA overtime for working the regular work week. With the exception ofthe "9/80 plan" as described above and the 4/11 Dispatcher Plan, the standard work week shall be forty hours to be, worked within five consecutive days. Additional exceptions to the above are listed in Appendix D. The Union shall be rlotified of any further exceptions to this section in accordahce with Article III, Section 8. The City and the Union agree that the availability of altematelflexible work schedules is a valuable benefit in that they promote job satisfaction while also reducing traffic congestion and air pollution. During the term of this agreement, employees, subject to the conditions of their job assignment, may propose an alternate work schedule as listed un4er this Section. Such proposals must be made to the department head through the inunediate supervisor. Serious consideration will be given to the feasibility and productivity of such proposals, however Management retains the right to determine scheduling needs. Section 2 -Overtime Work. (a) Overtime work for all unit employees shall be defmed as any time worked beyond the standard workday or beyond the standard work week. Emergency overtime is defined as unplanned overtime work arising out of situations involving real'loss of service or property or personal danger. Emergency overtime does not include: ' (i) overtime work resulting from persounel replacement for purposes of maintaining scheduled staffing; (ii) overtime work which is planned in advance; (iii) overtime work resulting from being held over for up to four hours to fmish work performed during the regular shift. (b) Compensation to employees working overtime will be in the form of additional pay at the rate of one and one-half times. Two times regular rate will be paid for billable customer convenience overtime and emergency overtime as defined in subsection (a) above) the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one-half hours for each hour of overtime worked, subject to the limitations of applicable sta1e and federal laws. In the event compensatory time off is used as the method of compensating for Overtime, the time off will be taken prior to the end of , the quarter following the quarter in which the overtime has been worked. In the event Pagel50f64 I 1 the employee is denied this provision, helshe will be compensated in pay for such . time at the appropriate rate specified by these sections, Or at the employee's option, the earned compensatory time will be added to the employee's vacation balance, ( c) All time for which pay is received shall count as hours actually worked for the computation of regular overtime pay; however, non-productive time will not be included in computation of any additional FLSA premiums, (d) When an employee is required to work 6 or more hours of overtime (either emergency or pre-arranged) during the 16 hour period immediately preceding the beginuing of the employee's regular shift ona workday, the employee shall be entitled to an eight- hour rest period before returning to work If the rest period overlaps into the second half of the work day, the employee may be given (with supervisor approval) the remaining time off (up to a maximum of3 hours) at the stralghttime rate of pay, Any portion of the rest period falling within the employee's work shift will be considered as hours worked and compensated at the straight time rate, (e) If non-emergeocy overtime is canceled without at least 40 clock hours notice, the City shall pay the affected employees two (2) hours' pay at time and one-half. (1) Employees working overtime who are too fatigued to continue or retorn to work, for safety reasons will be released from duty without compensation, Section 3 -Work Shifts. All employees shall be assigned to work shifts with schedwed starting and quitting times; Should conditions necessitate a change in starting and quitting times, the Union will be notified ten (10) working days in advance and permitted to discuss such changes with the City. This, however, shall not preclude the City's right to effect schedwe changes dictated by operational necessity. This section does not apply to overtime scheduling, Section 4 -City-Paid Meals. (a) Emergency overtime meals. Forpurposes of this section, emergency overtime is defined as unplanned overtime arising out of situations involving real loss of service or property or personal danger. The City agrees to reimburse for meals in the amount of $1 0 for breakfast, $15 for lunch, and $20 for dinner and will provide meals in the following emergency overtime situations: (1) When an employee is called back and is on duty for a period of three consecutive hours, and theJ;eafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. OR, (2) When an employee is held over on duty so that hislher overtime assigument extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends, Page 16of64 , [ I OR, (3) When an employee is called out two hours or more before a: regularly scheduled day shift and works the regularly scheduled shift, helshe will be entitled to breakfast and lunch. Lunches will be consumed on employee's own time. No in- lieu pay will be made for meals not taken. This sub-section does not apply if already covered in Section 4(a)(I) above. (4) When recalled two hours or less after the end of a regular shift, uuless !iSSigned to standby. (b) Non-emergency overtime meals. The City will provide meals for personnel assigned to non-emergency overtime work where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. (c) With, regard to (a) and (b) above, the City agrees to reimburse for meals in the amount of$lO for breakfast, $15 for lunch, and $20 for dinner. Where possible, the City will arrange purchase orders at mutually agreeable restaurants. The time neeessaril y taken to consume a meal provided under this section shall be considered as time worked to a maximum of one hour, except as noted in (a) (3). (d) With regard to (a) and (b) above, in the event an employee is to be provided a meal or meals pursuant to this section!ll1d such meal(s) are not provided due to working conditions, the employee shall have the option of receiving for each meal not provided an additional one hour of overtime compensation in lieu of such meal. This hour will not be considered as time worked or part of the rest period, but will be applied to qualifY for the rest period .. (e) Emergency overtime meals for Public Safety Dispatcbers. The Police Department will provide meals to employees in an emergency overtime situation involving real or potential loss of service or personal danger. (1) When an employee is called back and is on duty for a period of three consecutive hours, and 1hereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. (2) When an employee isheid over on duty so that hislher overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends. (3) When an employee is called out two hours or more before a regularly scheduled shift. The employee will be entitled to two meals, the second meal will be consumed on the employee's own tUne. No in-lieu pay will be made for meals not taken. Page 17 of64 -i ; , , . -j I (4) When recalled two hours or less after the end of a regular shift, unless assigned to standby. (1) Non-emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in non-emergency situations where the . assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. If the City is unable to provide a meal, the City agrees to reimburse for meals in the amount of$10 for breakia.>'t, $15 for lunch, and $20 for dinner. This policy only applies when an employee is held over, either voluntary or mandated, on duty beyond a scheduled regular or overtime shift. Section 5 -Break Periods. All employees shall be granted a break period or coffee break: limited to 15 minutes during each four hours of work. Departments may make reasonable rules concerning break period scheduling. Break periods not taken shall be waived. I Section 6-Clean-Up Time. All employees whose work causes their person or clothing to become soiled shall be provided )'Vith reasonable time before lunch and at shift end for wash-up purposes. . Section 7 -Standbv Pay, Cllll-Out Pay. (a) Standby Compensation. Employees performing standby duty shall be compensated at the daily rates established below: Monday through Friday $50 Saturday, Sunday, Holidays $73 (b) Minimum Call-Out Pay. Employees not otherwise excluded from receiving overtime pay who are called out to perform work shall be compensated for at least two hours' pay from the time of the call-out for each occurrence at the appropriate overtime rate. The two-hour minimum does not apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two-hour minimum will apply. Section 8 -Night Shift Premiwn. Night shift premium of$L44 per hour shall be paid to employees for work performed between 6:00 p.m. and 8:00 a.m. This premium shall not apply to an employee whose schedule does not quaiifY for shift differential who requests an earlier scheduled start time that would otherwise qualify the employee for the premium. A minimum of two hours must be worked between 6 p.m. and 8:00 a.m. to qualify for the premium. Employees who regularly work night shifts shall receive appropriate night shift premiums, relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation. Night shift premium does not apply for overtime situations unless overtime is approved to replace all employee who would have otherwise received a night shift premium. Page 18 of 64 I Section 9 -Bilingual Premium. $35 per pay period shall be paid to a. bilingual employee whose abilities have been detennined by the Human Resource Director as qualifying to fill positions requiring bilingual speaking and/or writing ability when the employee regularly performs such duties. The Human Resource Director will determine the number, timing, location and duration of the assignments receiving the additional pay provided herein and which languages are needed. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the designation of positions will be referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. Section 10 -Communications Training Officer (CTO) Compensation. Public Safety Dispatchers and Chief Public Safety DispatcherS identified by Management to work as a Police Officers Standards and Training (POS1) certified CTO will be compensated at a premium pay rate offive (5) percent. The premium pay is provided only for those hours spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center. ARTICLE IX -UNIFORMS AND TOOL ALLOWANCES. Section 1 -Uniforms. (a) The City will provide uniforms, coveralls or shop coats on a weeIdy basis, or as otherwise furnished, for the following jobs andlor classifications and any positions necessary or required as determined by management. Animal Control Officer Assistant Storekeeper Auto Service Mechanic Building Service Perscn -Lead Building Service Person Cathodic Technician Cement Finisher· Lead Cement Finisher Chemist Community ServiceOfficer 0 Electrical Assistant Electrician Apprentice Electrician Lead Engineering Technician III -Refuse Equipment Operator . Equipment Operator -Lead Facilities Carpenter Facilities Electrician Facilities Maintenance -Lcad Facilities Mechanic Facilities Painter Field Serviceperson Page 19 of 64 --, i Gas System Shop/Field Repairer Gas System Technician I Gas System Technician II Golf Course Equipment Mechanic Golf Course Maintenance Person Heavy Equipment Operator -Lead Heavy Equipment Operator Industrial Waste Inspector Industrial Waste Investigator Instrumentation Electrician Laboratory Technician, Water Quality Control Line Person/Cable Splicer . Line Person/Cable Splicer -Lead Mail Services Specialist Maintenance Mechanic Maintenance Mechanic, Water Quaiity Control Mechanical Unit Repairer Meter Reader Meter Reader -Lead Mobile Service Technician Motor Equipment Mechanic -Lead Motor Equipment Mechanic Offset Equipment Operator -Lead Offset Equipment Operator Pmk Maintenance Assistant Parking Enforcement Officer Park Maintenance Person Park Crew -Lead Park Maintenance -Lead Park Ranger Parks & Open Space Assistant Police Records Specialist Refuse Disposal Attendant Senior Chemist Senior Industrial Waste Inspector Senior Instrumentation Technician Senior Opemtor, Water Quality Control Senior Mechanic, Water Quality Control Senior Park Ranger Sprinkler System Repairer Street Maintenance Assistant Storekeeper Storekeeper-Lead Street Sweeper Operator Traffic Control Maintainer -Lead Page 20 of64 I T~affic Control Maintainer II Traffic Control Maintainer I Tree Trimmer-Line Clearer Tree Maintenance Assistant Tree Trimmer-Line Clearer Assistant Tree Trimmer-Line Clearer -Lead Tree Maintenance Person Truck Driver Utilities Compliance Technician Utility Field Service Representative Utility InstalJerlRepairer Utility InstallerlRepairer Assistant Utility InstallerlRepairer -Lead Utility Locator Water Meter Cross Connection Technician Water System Operator -Lead Water System Operator Water System Operator I Water System Operator II Water Quality Control Plant Operator (b) Coveralls will be made available for occasional use as needed to protect clothing for the following classifications and any positions necessary or required as determined by management. Building Inspector Building Inspector Specialist Building Service Person -Lead Cable Splicer Assistant. Chief Electric Underground Inspector Electrical Assistent Electrician Facilities MechaniclPainter Heavy Equipment Operator LinepersoniCable Splicer Park Ranger Senior Park Ranger Utility Field Service Representative SpriDkler System Repairer Utility Installer Assistant Utility InstallerlRepairer Utility Insta11er/Repairer -Lead ( c) Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided. PagellOf64 I (d) Employee clothing seriously damaged or destroyed in conjunction with an industrial injury will be reasonably replaced by the City. Any other claims alleging City liability may be flied with the City Attorney. (e) Except in the Utilities Division, the City will make avallable, as an alternative to the shirts currently provided under Section I (a), six (6) cotton polo shirts. Employees in . the Utilities Division will be provided with six (6) long-sleeve shirts and two polo shirts. ,Employees will be responsible for laundering the shirts. Damaged or otherwise unwearable shirts will be returned to the employee's supervisor and replaced by the City. (f) Employees are responsible for laundering Park Ranger and Senior Park Ranger uniforms. (g) The City will meet and confer with the Union regarding any mandated changes to uniforms. Section 2 -Tool Allowance. (a) Mechanics in Equipment lMaintenance, Park Malntenance Lead, Golf Course Equipment Mechanic, Motorized Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance of$610 annually effective Juiy 1,2005. (b) All tool allowances shall be pald bi-weekly. I (c) Parties will meet and confer to determine if additional classifications require tool allowance. Section 3 -Shoe AIlow.@Ce. (a) Safety Shoes. The City shall reimburse employees 75 % of the cost of job-related safety shoes upon verification of such purchase by the employee. (b) Walking Shoes. The City will reimburse employees 75% of the cost of job-related VI'al.king shoes for any positions necessary or required as detennined by management including Meter Reader and Meter Reader-Lead, in an amount not to exceed $300.00 per year. A walking shoe is a durable work shoelboot (non steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water resistant; lightweight and durable; and also provides hard surface cushioning. Section 4 • Certifications. The City has proposed to add certain certificationS to the list currently covered by this Memorandum of Agreement. The City and Union agree that their discussion of this proposal will likely require additional time and analysis beyond what will be otherwise needed for the parties to reachagreemenl Accordingly, the parties agree that the City and Union will continue to meet and confer on this City proposal following ratification and adoption of the MOA The parties agree to retain the Page 22 of 64 ·j . j current list of required certifications below and to attempt to address and resolve the issues raised by the City's proposal and endeavor to reach an agreement to the extent possible, within 60 days of the adoption of this contract. Employees who are required to maintain conunerciaI driver's licenses shall have costs for medical examinations pald by: (a) Completing an examination through their PEMHCA provider. After benefits have been paid by the PEMHCA provider, upon presentation of proper documentation, the City will reimburse any remaiuing costs, or (b) Completing an examination at the Workforce Medical clinic or other City.designated clinic. Employees may use pald leave for attend!lJ1ce at scheduled medical examinations. Employees shall btl permitted to use up to two hours of regular City- paid time for attel1d!lJ1ce at biannual medical examinations. The scheduling of such time shall be pre!lJ1thorized by the employee's supervisor. (c) The City will pay special registration and/or certification thes which are required by Management. During the term of this agreement, the City and the Union may, by mutual agreement, review, add or delete classifications andlor required certifications listed below: Classification Bldg Inspec Spec Cathodic Technici!lJ1 Engineer Professional Equip Maint Serv Pers. Golf Course Malnt Pers. Indust. Waste Inspector Inspector Field Services, Utilities IDStallerlRepalrer Series Meeh. Unit Repairer Motor Equip Mechanic and Lead . Public Safety Dispatcher Requirement rCBO Certificate Corrosion Technician by the National Assoc. of Corrision Engineers Professional Engineer Cert. (fur step E) Forklift Operator Cert. (OSHA-approved) Qualified Applicators' License Backflow Prevention Device Tester D1 (DOH) D1 (DOH) Welding Certificate . EMS,ASE POST Basic Dispatcher POST Fire Academy EMD Page 23 of64 .. , -; Public Safety Dispatcher, Lead Sr Operator, WQC Surveyor, PW Tree Trimmer/Line Clearer Tree Trimmer/Line Clearer-Lead Uti! InstalllRep series Veterinarian Tech Water System Operator I Water System Operator II Senior, Water System Operator WQC Plant Oper I WQC Plant Oper II WQC Plant Oper Trainee Water Meter Cross- Connection Tech POST Basic Dispatcher POST Fire Academy POST Supervision EMD Grade III Wastewater Treatment Plant OperCert. Licensed Land Surveyor Certified Tree Worker,andlor Qualified Line Clearance/Tree Trimmer Cert. (OSHA·approved) Certified Arborist Polyethylene Fusing Cert. Gas Operator Cert. (DOT) Animal Health Tech. Cert. Grade Dr -Water Distribution Operator Grade DII -Water Distribution Operator & Grade TIl Water Treatment Operator . Grade DIll -Water Distribution Operator & Grade TIll Water Treatment Operator Grade I Water Treatment Operator Cert. Grade II Water Treatment Operator Cert. Grade I Water Treatment Operator Cert. Backflow Prevention Tester Cert. Through these negotiations the City and the Union have agreed to add the following required certificates; . / 1. Inspector Field Services. Utilities D I (DOH) 2. InstallerlRepairer Series, Dl (DOH) 3. Public Safety Dispatcher, EMD 4. Lead Public Safety Dispatcher, EMD Page 24 of 64 (d) The City' will,pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver:s License in accordance with the Califoruia Vehicle Code and applicable laws prescribed by the Department of Transportation. (e) Pipeline Welding Assignment. The City will provide a 4% increase in base compensation to Utility Installer-Repairer, Installer-Repairer Lead positions that meet DOT certification requirements and are assigned these duties. Utility Installer- Repairer and Utility Installer-Repairer Lead positions that fail to maintain current certifications will liot receive the 4% increase. Positions assigned these duties and designated by Management to receive thill premium will not exceed five (5) Utility InstallerlRepairer and InstallerlRepairer Lead, If the certification is required in the job description, certification must be maintained. In accordance with their job description Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shaIl receive 4% increase to their base pay for pipeline welding. (I) Building Inspector. Upon successful completion of probationary requirements, the City will pay Building Inspectors a one (1) percent of base salary one-time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year or two payments in a career. The Building Inspect()r Job Description specifies current requirements and the Union and City will agree on a list of appropriate certifications eligible for the premium. Premiums will not be paid if certification is not maintained. (g) Water and Wastewater System Operator Certification. Employees classified in the following positions: Water Quality Control Plant Operators I and II, Senior Operator Water Quality Control, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job Series may be eligible to receive a I % base pay premium for certifications required by the Department of Health and/or the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (I) percent for one (1) certification that is above those listed in their job description. An employee who qualifies for this payment shall be paid 1 % of the employee;s annual base salary once per year. The employee shall be responsible for providing the City with written documentation that the employee has obtained and is maintaining the qualifying certification on an annual basis. Premiums will not be paid if certification is not maintained. Eligible employees should verify certification will qualify for the premium before attempting certification. The Union and the City will update the job descriptions to reflect newly required certifications with no further adjustments to base salaty. Payments will not exceed a maximum of one percent per year, and will take effect in the pay period following the verification of certification. All costs fbr obtaining certifications above what the job description requires will be the Page250f64 responsibility of the employee and may be paid for by using the City's tuition reimbursement program. . (11) In accordance with Cal-OSHA regulations any employee who operates a forklift must have Forklift Operator Certification. Training to be provided by the City. I Section 5 -Weather Protecti9n. The City will provide rainy weather foot protection and one summer hat for the classification of Parking Enfurcement Officer. I . . ARTICLE X -HOLIDAYS Section I -Fixed Holidays. E:i!:cept as otherwise provided, employees within the representation unit shall have the following f]Xed holidays with pay: January 1 Third Monday in January (Martin Luther King Day) Third Monday in February Last Monday in May July 4 First Monday in September Second Monday in October Vetarans' Day, November 11 Thanksgiving Day Day after Thanksgiving December 25 Either December 24 or December 31 (see below) Employees shall be excused with pay for the full work shift on either December 24 or December 31,provided, however, that City facilities remain open with reduced staffing r levels, that Management retal.os the right to determine work schedules, and that neither day be considered a holiday for purposes of premium pay. If employees are not excused pursuant to this provision, one shift of vacation credit will be added to their vacation accrual. In the event that any of the aforementioned days, except for December 24 or December 31, falls on a Sunday, the following Monday shall be considered a holiday. In· the event that any of the aforementioned days fails on a Saturday, the preceding Friday shall be considered a holiday. If December 24 and 31 falls on Sunday, then the preceding Friday will be designated for purposes of the holiday. Exceptions to this provision are listed in Appendix E. Section 2 -Pay for Fixed Holidays. (a) All employees shall be paid a full day's pay at their regular straight time base hourly rate for all fixed holidays as defined herein. Page 26 of64 (b) An employee must be in a pay status on the workday preceding the holiday to be eligible to be compensated for a holiday. This subsection does not apply to an employee who is on an unpaid medical leave of absence ofless than five (5) days. Section 3 -Work on Fixed Holidays. Any employee required to work on a fixed holiday shall be paid time and one-half for such work in addition to his or her regular holiday pay. Work on a fixed holiday beyond the number of hours in a regular shift shall be compensated at double time and one-half. Employees who work Ii schedule where a regular day off faIls on a holiday will accrue the holiday hours they would have nonna1ly worked on that day. Section 4 -Variations in Work Week. (a) An employee whose work schedule requires that his or her regular days off be other than Saturday andlor Sunday shall have an additional day off scheduled by ther department in the event a fixed holiday falls during his or her regularly scheduled day off. Every attempt will be made to schedule the day on a mutually agreeable basis .. If the day cannot be so scheduled, the employee shall be pald for the day at the stritight time base rate. . (b) Fixed holidays which faIl during a vacation period or when an employee is absent because of illness shall not be charged against the employee's vacation or sick leave balance. Section 5 -Floating Days Off: Floating days offwith pay 'will be scheduled by Management as follows so as to produce three-day weekends: August 2010 Apri12011 June 2011 One floating day off One floating day off One floating day off . The following conditions will hold: (a) Management will desiinate the scheduling of the pald day off under this section at least thirty days in advance. (b) If in conformance with this section, Management is unable to schedule a day off in the month indicated, for reasons of shift operations, work scheduling or any other . reason, the floating holiday will then be added to the employee's vacation accrual on the first pay period of the following month. (c) If an employee fails to take a day off as scheduled by Management under this section, the day off so scheduled will be forfeited. Page 21 ot64 ARTICLE XI -VACATIONS Section 1 -Yacation Accruals. Each employee shall be entitled to an annual paid vacation, accrued as follows: (a) First day of continuous service through the last day of the fourth (4th) year: 80 hours vacation per year. (b) First day of the fifth year of continuous service through the last day of the ninth (9th) year: 120 hours vacation per year. (c) First day of the tenth (lOth) year of continuous service through the last day of the fourteenth (14th) year: 160 hours vacation per year. (d) First day of the fifteenth (15th) year of continuo~ service through the last day of the nineteenth (19th) year: 180 hours vacation leave per year. . (e) Twenty (20) or more years: 200 hours vacation leave per year. Employees may accrue up to three times their annual vacation leave without loss of vacation days. In the event the City is unable to schedule vacation and, as a result thereof;the employee is subject to loss of accrued vacation, the City sball extend the vacation accruai limit up to one year, in which time the excess vacation must be scheduled and taken. As long as there is no interference with departmental operations, there shall be no unreasonable restriction of increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave. Section 2 -Holiday Falling During Vacation. In the event a fixed holiday as defined in Article X falls within an employee's vacation period, which would have excused the employee from work (and for which no other compensation is made), an additional workday for such holiday shall be added to the vacation leave. I Secti()n 3 -Illnesspuring Vacation. 'When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalizro for any period, the employee shall have the period of illness chsrged against sick leavll and not against vacation leave. Section 4 -Accrued Vacation Pay for Deceased Employees. An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to his/her estate within thirty days. This proration will be computed at hislher last basic rate of pay .. Section 5 -Effect of Extended Military Leave. An employee who interrupts service because of extended military leave shall be compensated for accrued vacation at the time the leave becomes effective. . Page 280f64 I . I Section 6 -Vacation at Termination. Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. . I Section 7 -Vacation Cash Out. Ouce each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours, to a maximum of 120 hours; ·1 provided that the employee has taken 80 hours of vacation in the previous 12 months. ARTICLE XII -LEAVE PROVISIONS Section 1 -Sick Leave. (a) The City shall provide each employee with paid sick leave. earned on a daily basis and computed at the rate of 96 hours per year, with no limits on amounts that may be accumulated, except that fur employees hired after July 1, 1983, sick leave accrual accumulation shall be limited to 1,000 hours and subsections (a)(l) and (a)(2), shall not apply. Payment for accumulated sick leave at termination shall be made only in the following circmnBtances: (1) Eligible employees who leave the municipal service or who die while employed and who have fifteen or more years of continuous service shall receive compensation for illlUsed sick leave hours in a sum equal to two and one~half percent of their unused sick leave hours multiplied by their years of continuous service and thcir base hourly rate of pay at termination. (2) Full sick leave accrual will be paid in the event of termination due to disability. (b) Use o/Sick Leave. Sick leave shall be allowed and used in cases of actual personal sickness or disability, medical or dental treatment, or asiluthorized for personal business. Up to nine days sick leave per year may be used for illness in the immediate family, including registered domestic partner. A new employee may, if necessruy, use up to forty-eight (48) hours of sick leave at any time during the first six months of el)lployment. Any negative balances generated by such utilization will be charged against future accrual or deducted from fmal paycheck in the event of termination. (c) An employee who has been disabled fer 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at hislher option, choose either to receive the long term disability benefits or to utilize the remainder of hislher accrued sick leave prior to _applying for long-term disability benefits. (d) Sick leave will not be granted for illness occurring during any leave of absence uniess the employee can demonstrate that it was.necessruy to come under the care of a doctor while on such other leave of absence. Page290f64 , ---' (e) Return to Work With Limited j)yty. Upon approval of department management and the City Risk Manager, an employee may return to work for doctor-approved limited duty. Approval for return to work s.ball be based upon department ability to provide work consistent with medical limitations, the location of the work assignment, and the length of time of the limitations. The City doctor may be consulted in detennining work limitations. Section 2 -Bereavement Leave. Leave of absence with pay of three days shall be granted an employee by the head of his or her department in the event of death in the employee's immediate fumily, which is defined for the pUIposes of this section as wife, husband, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, mother, step-mother, mother-in-law, father, step-father, father-in-law, brother, brother-in-law, step-brother, sister, step-sister, sister in-law, grandmother, grandmother-in-Iaw, grandfather, grandfather-in-law, grandchildren, aunt, uncle, niece, nephew, registered domestie partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Request for leave with pay in excess of three (3) days shall be subject to the written approval of the City Manager. Approval of additional leave will be based on the circurnstances of each request with consideration given to the employee's need for additional time. Section 3 -Mili~ Leave. The provisions of the Military and Veterans' Code of fue State of California shall govern the granting of military leaves of absence and fue rights of employees returning from such leaves. Consistent with the Military and Veterans Code, the City of Palo Alto sbal1 pay employees in SEIU bargaining unit their regular salary, salary differential, and all available benefits for fue first thirty days. (a) Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. (b) Family Leave. Family leave will be granted in accordance with applicable state and federal law. . . (c) Other.,Leaves. Leaves Qf absence without pay may be granted in cases of personal emergency, Union bnsiness or when such absences would not be contrary to the best interest of the City .. Non-disability prenatal leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. During·unpaid leaves of absence for disability or other reasons, fue employee may elect to use accrued vacation credits .. Requests for leaves without pay s.ball not be Page 30 of 64 unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 5 -Jury Duty and Subpoenas. Employees required to report for jury duty. or to answer subpoenas as a witness in behalf of the State of California or any of its agencies shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received from such duties other than mileage or subsistence allowances within thirty (30) days from the termination of jury service. When an employee returns to complete a regular shift following time served on jury duty or as a witness, such time fulling within the work shift shall be considered as time worked for purposes of shift completion and overtime computation. In determining whether or not an employee shall return to his or her regular shift following performance of the duties, reasonable consideration shall be given to such factors as travel time and a period of rest. When a combination of City work time and jury duty equals 14 or more hours in the 24-hour period immediately before the employee's shift starting time, the employee will be allowed a rest period of nine hours. Any portion of the rest period falling within the employee's work shift will be considered as hours worked and compensated at the straight time rate. This provision does not apply to conditions of bona fide emergency. Bona fide emergency conditions are conditions involving real or potential loss of service or property or personal danger. Section 6 -Time Off to Vote. Time off with pay to vote in any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 7 -Disapproval of Leave of Absence. In case of disapproval of extension, revocation or cancellation of an existing leave of absence, notice shall be sent by certified mail, return receipt requested, to the employee stating the date of such action, the reason and a specific date to return to work, which is not less than five working days from date indicated on return receipt. Section 8 -Personal Business Leave Chargeable to Sick Leave. All employees shall be granted up to twenty (20) hours personal business leave per calendar year, chargeable to sick leave. The employee need not disclose the reason for the personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management, and such approval shall not unreasonably be denied. Section 9 -Return to Assignment. The department shall make every effort to ensure that employees resuming work following a leave pursuant to Sections 1-8 shall be returned to the assignment, shift, andlor work location held immediately prior to the leave. If the employee cannot be so assigned, he or she shall, upon request, be granted a meeting with department management to discuss the reasons for the change. Upon request, the employee shall be afforded Union representation at such a meeting. Page 31 of64 I ARTICLE xm· WORKERS' COMPENSATION INSURANCE Section 1 -Industrial Temporary Disability. (a) While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall he paid full base salary for a period of not to exceed fifty-seven (57) calendar days, unless . hospitalized, in which case employees shall be paid full base salary for a period not to exceed sixty (60) days from date of injury. (b) For any temporary disability continuing beyond the time limits set forth in (a) above, employee~ shall be paid two-thirds (66 2/3%) of their full base salary at the time of injury for the duration of such temporary disability in conformance with the State law. (e) During the period of temporary disability, an employee's eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees. In case of Subsection (a) above, the employee will continue to accrue vacation and sick leave benefits. In the case of Subsection (b), sick leave and vacation benefits shall not be accrued. Section 2 -Vocational Rehabilitation Benefits for Permanently Disabled Employees. Vocational Rehabilitation will be made available to employees who have suffered permanent disability as a result of an injury or illness sustained in the course and scope of employment before 111/04. For injuries on or after 111/04 qualified employees are entitled to supplemental job displacement vouchers in accordance with the California Labor Code, Division 1, Department of Industrial Relations and Division 4, Workers' Compensation and Insurance, the Americans with Disabilities Act (ADA), and the City of Palo Alto's Workers' Compensation Program. . ARTICLE XIV -BENEFIT PROGRAMS Section 1 • Health Plan (a) Active Employees 1. The City will pay up to the monthly medical premium for the 2nd most expensive plan among the existing array of plans, except that fur increases that go into effect after January 31, 2010 the City and participating employees will share equally the first ten percent (10%) of each premium increase that occurs for the plan in which the employee is enrolled at their respective level of enrollment (i.e. one party, two party, family). If a given increase exceeds ten percent (10%), the balance of that increase will be paid by the City. If sufficient increases occur that the employee portion of the premiUm for the plan in which he or she is enrolled equals ten percent (10%) of the total premium at the employee's level of enrollment, the employee's share of further premium increases shall be ten percent (10"10) and the Page 32 of64 i " .j City's share shall be ninety percent (90%). City medical premium contributions will be prorated for part-time employees hired or newly assigned to a part-time work schedule on or after January 1,2010 based on the number of hours per week the part-time employee is assigned to work. lfPERS changes the plans it offers, the City and the Union will meet and confer over the City continuing to provide an equivalent benefit at an equivalent cost. Effective February J, 2010, with premium increases that go into effect after January 31, 2010 the City shall contribute to its retiree insurance trust (the PERS retiree medical trust or its successor) an amount not less than the amount of premiums paid by active employees in the bargaining unit in the respective calehdar year as a result of the sharing of the first 10% of eacli premium increase, as provided above in this pamgraph 1. The City shall make one contribution in the fiscal year to cover the entire amount payable to the trust under this pamgraph as of the preceding December 31. 2. Through December 31,2009, the City will reimburse employees on PERS Cam, who switch to PERS Choice during the 2006 open enrollment period and remain in PERS Choice for maximum calendar year co-payments for unreimbursed costs incurred due to the difference between the PERS Care maximum calendar year copayment responsibility and the PERS Choice maximum calendar year copayment responsibility. The total payments per employee will not exceed $1000.00 annually unless employee has a one dependentlfumily coverage in which case annual payment will not ,exceed $2000.00. The City has agreed to provide an annual amount of$SO,OOO.OO to address these costs. lftotal claims for reimbursement exceed available funds, the City will use any unused tuition reimbursement funds budgeted for SEIU for these purposes. Any money left from each year will carry over to subsequent years of this contract. 3. The City agrees to offer a program to active SEIU employees enrolled in PERSCare as of911106 who elect the PERS Choice health plan in which the City will reimburse the employee and/or dependents for any covered medical expense which exceeds the $2 million Lifetime Maximum Benefit (b) Health Plan Coverage for Future Retirees Hired Before JilIIuary 1,2005. Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees' Medical and Hospital Care Act. Effective 111107 the City's monthly employer contribution for each retiree sha11 be the amount necessary to pay for the . cost of his or her enroilment, in a health benefits plan up to the monthly premium for the 2nd most eXpensive plan offered to the SElli employee (among the existing array of plans). However, the City contribution for an employee hired before January 1, 2005 who retires on or after January 1,2010 shall be the same contribution amount it makes from time to time for active City employees, except that employees retiring after January 31, 2010 but on or before December 31Jall6 30, 2010 shall not be required to pay any premium increase that fust takes effect after January 31, 2010." Page 33 of64 . i , . For 20061Q, the contribution for dependents is 80~% (8a~O% in 20Wl) of difference between the applicable "Employee and One Dependent" or "Family" maximum employer contribution for Active SEIU employees and the maximum monthly employer contribution for "Employee Only" coverage. 1bis contribution for dependants will increase annually by 5% of the difference between the single party premium and the two or family member premium, until such time as the amounts are equal . (e) PERS -Health Benefit Vesting For Future Retirees Effective January 1,2005. The CalPERS vesting Schedule set forth in Government Code section 22893 will apply to all SEIU employees hired on or after January 1,2005. 'Under this law, an employee is eligible for 50% of the specified employer health premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additioual year of service credit will increase the employer contribution percentage by 5% until, at 20 years' service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution. However, the maximum contribution for family members will be 90% of the specified employer contribution. The City of Palo Alto's health premitmi contribution will be the minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. (d) Coverage for Domestic Partners. Domestic Partnership Registered with the California Secretary of State. -Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Registered with the California Secretary o/State. Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed the maximum monthly City employer_contribution for one-. party coverage under the CalPERS Health Benefits Program for SEIU members. Evidence of premium payment will be required with request for reimbursement. (c) At City option during the life of this agreement and if otherwise available, the City may offer an incentive payment in lieu of City-paid dependent or family medical coverage for those employees who volunterily decline dependent coverage . . 1 (1) Alternative Medical Benefit Program. If a regular employee and/or the employee's dependent(s) are eligible for medical insurance through any other employer-sponsored or association-sponsored group medical plan, the employee may elect that alternative medical insurance coverage through the other employer-sponsored or association plan and waives wsther right to the City of Palo Alto's medical plan insurance coverage for same individuals. Page 34 of64 Employees electing alternative coverage and waiving City coverage will receive cash payments equal to approximately half of the "average monthly premh:uns" for their medical insurance coverage. "Averaged monthly premiums" are the average of the Kaiser HMO, Blue Shield HMO and PERS Choice PPO premiums of the employee's City medical coverage available through the CalPERS Health Benefits Program. The rates for 200911 are as follows: One Party: $26QJ)1} $301 Two Party: $.§21}.OO $603 Family: $675.Q9 $""7"'83"--___ _ (g) If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside ofPEMHCA, the City's total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the . absence of such state or federal plan. The City will meet and confer with the Union over the impact of such change on matters within the scope of representation before implementing any change. (Il) :p.lotwithstallsiIl:g atty Sjleeifiea effeeth,.; elate sst forti! ill fllis SOOHOO 1, the City will !let ii'llJ:'lleme.at reooeli:eas in its health ill.SUfa!leS eeat5ll\tiells feI aetive empl(l'j'lles er fattlftll'emees ,vitliot!t issu-iag a gefleFal .aetiee ants illteat te de se at least thirty (:lg) aays !;efere tae aetual &feelise date anile efiaage (whether the same Sf Elifferea.ttha:a the speeifuld dats(s) abave.). This j9Gmgfaph shall be deeunsEi null MEl 'loid as sf fua.e aI}, 21}\g. Section 2-Dental Plan. (a) The City shall continue to provide a self-funded dental program for th.e benefit o(City employees and their eligible dependents. The City shall pay 100% of the required premiums for the program, except that benefits for regular part-time employees will be prorated as follows:_Employees hired after January 1,2005, who will work less than full time, wiltreceive prorated premium costs for dental benefits in accordance with hislher percentage of a full-time work schedule. Part-time employees =t1y receiving full benefits will not be impacted. (b) The City's Dental Plan provides the following; • Maximum Benefits per Calendar Year $2,000 per person. (c) Effective July 1,2001, dental implants in conjunction with one or more missing natural teeth, and removal of implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR). ./ (d) Effective 1/1/07 the City will add composite (tooth colored) fillings in dental plan . I Page 35 of64 j I ... , • ; posterior teeth. (e) Effective 111/07 the City will pay up to $2000.00 for Orthodontia coverage. Section;lc Vision Care. The City shall continue to provide a self-funded vision care program for the benefit of City employees and their dependents. The City shall pay 100% of the required premiums for the program. The benefits of the vision care program shall continue to be equivalent to $20 Deductible Plan A under the Vision Service Plan .. ' Section 4 -Life Insurance. The City agrees to continue the Basic and Supplementallifu insurance plan as currently in effect for the term of this Memorandum of Agreement. I Sec~ion 5-Long Term Disability Insurance. The City shall co:runue the long term disability insurance plan currently in effect for the term of this Memorandum of Agreement. For Plan A, the benefit is 66 and 213% of pre-disability earnings to the maximum benefit level of $4000.00 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the first $6,000 of monthly salary, less a credit of$II.17 per month to be pald by the City. For Plan B, the benefit is 60% of pre-disability earnings up to the maximum benefit level of $1800 per month. Employee coverage is subject to a voluntary payroll deduction of the insurance premium applicable to the fust $2000 of monthly salary for Plan B. The City will pay premiums in excess thereof. The City will pay up to $17.50 per month toward long term . disability insurance premiums for those employees without eligible dependents covered under the health insurance provisions. Section 6 -Effective Date of Coverage for New Employees. For newly-hired regular employees, elected coverage will begin on the first day of the month following date of hire, Section 7 -Dual Coverage. When a City employee is married to another City employee each shall be considered as an employee for purposes of health and dental coverage, provided however that neither sha1l be covered as a dependent of the other, and dependent children, if any, shall be covered by only one spouse. Section 8 -Deferred Compensation, The City sha1I continue to make available a Section 457 Deferred Compensation Plan to SEIU employees and will insure reasonable access to Deferred Compensation representatives for all interested employees. Section 9-Dependent Care Assistance Program. The City shall continue to provide a Dependent Care Assistance Program (DCAP) for_employees that complies with Section . 125 and 129 of the Internal Revenue Code. Section 10 -Training Programs. (a) Employees assigned by the City to attend meetings, workshops, or conventions of their professional or technical associations sha1l have their dues and reasonable Page 36 of 64 < i -: I I expenses paid by departmental funds and shall be allowed to attend such.workshops, meetings, and conventions on paid City time. (b) Health club/gym membership reimbursement of these expenses is taxable to the employee. (c) City will reimburse for travel, meals. and lodging while away from home attending an educational conference that the supervisor authorizes as being job related or which will improve an employee's skills. Per City Policy and Procedure 1-02, the Pre- Travel Authorization Form should indicate expenses that will be paid. ARTICLE XV -RETIREMENT Section 1 -PERS ContinuatiQ,!'h The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 Jor employees hired before January I, 2010 or the later effective date of the 2%@60 formula for new hires as described herein. The City shall amend its contract with CaiPERS to provide such employees hired on or after the effective date of the CaIPERS amendment with the CalPERS retirement formula two percent (2.0%) offinal salary at age sixty (60). The City will implement this change . on July 17,2010. IlH'ltlal)' 1,2910 SF as SeElR !l!:e!'ee'!ler as pessHlls. section 2 -Employee Share. Employees currently pay two percent (2%) and the City pays six percent (6%) of the eight percent (8%) employee contribution toward the 2.7 @ 55 pension formula Effective with the pay period including December I, 2009, employees under the 2.7 at 55 formula will pay an additional six (6%) percent toward 2.7% @ 55 for a total of eight percent (8%) of the PERS employee-share contribution. I The City contribution of the PERS employee share will simultaneously change to zero percent (0%). Effective June 30, 2010, the PERS employee share contribution rate of employees under the 2.7 @ 55 pension furmula shall change to five and three quarters percent (5.75%) and. the City's contribution shall simultaneously change to two and one . quarter percent (2.25%) of pay. . For employees. hired on or after January 1, 20 I 0 or such later date as the 2.0% @ 60 formula is implemented by the City, as provided in section I above, employees covered by that formula shall pay five percent (5%) of pay toward the seven percent (7%) employee contribution and the City shall pay two percent (2%). However, ifPERS laws or rules require that the contribution rate of employees toward the respective employee contributions under the 2.0 @ 60 and 2.7 at 55 formulas must be the same, the uniform employee contribution rate shall be six percent (6%) with the City paying the remaining percentage for the applicable formula. Section 3· Conversion for Final Twelve MonthsPrior to Retirement. Notwithstanding Section 2 above and pursuant to Govermnent Code Section 206lS.5, upon filing a notice I of retirement, the amount of the City-paid PERS employee contribution will be converted to a salary adjustment of equal !!mount on a one-time irrevocable basis" for the final. twelve months immediately prior to retirement. For this final twelve-month period the Page 37 of 64 """J ! employee shall pay PERS employee contributions. Upon receiving an employee's notice of retirement the City-paid PERS employee contribution that will be converted to a salary adjustment of equal amount on a one-time irrevocable basis for the fmal twelve months immediately before retirement will be the amount of the applicable employee-paid contribution set forth in section 2 of this Article. For this final twelve-month period the retiring employee on the 2.7 at 55 formula_shall pay the full percentage of the applicable PERS employee contributions. (8% for employees on the 2.7 @ 55 formula and 7% for employees on the 2.0% at 60 formula) .• Section 4 -Utility Rates Discount. Employees who retire and were employed by the City on or before April 1, 1977, and spouses of deceased employees who were employed by , the City on or before April 1, 1977, shall continue reductions in utility rates. All retired employees and spouses of deceased employees shall also have residential privileges at City libraries, refuse disposal area, golf course and swimming pools. ARTICLE XVI -COMMUTE INCENTIVES AND PARKING Section 1 -Commute Incentive. Eligible employees may voluntarily elect one of the following commute incentives: Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit.. New employees hired after April 30, 1994 may initially receive a parking permit for another downtown lot, subject to_the availability of space at the Civic Center Garage. Public Transit. The City will provide monthly Commuter Checks worth the value of: $40 for employees traveling two or more zones on Caltrain; $40 for employees using the Dumbarton Express, BART, the ACE train, or a commuter highway vehicle; $35 for employees traveling within one zone on Caltrain; $35 for employees using VTA, and other buses, These checks are pretaxed and may be used toward the purchase of transit pass. Carpool. The City will provide $30 per month (taxable income) to each eligible employee_in a carpool with two or more people. Vanpool Program. The City will provide Commuter Checks worth the value up to $60 to each employee voluntarily participating in the Vanpool Program. These checks are pre-taxed and may be used toward payment of the monthly cost of Vanpool Program participation. Employees must fulfill the basic requirements of the Employee Commute Alternatives Program to qualify. Bicycle. The City will provide $20 per month (taxable income) to eligible employees who ride a bicycle to work. Walk. The City will provide $20 per month (taxable income) to eligible employees who walk to work. Page 38 of64 Section 2 -Parking Lot Security -Mun,iyipal Service Cj3nter. The City will provide fenced and locked parking facilities for Municipal Service Center employees. Procedures will be established for entering and leaving the parking facilities. I Section 3 -Bicycle Lockers and Motorcycle ParkillB. The City will provide bicycle lockers and motorcycle parking areas for City employees at mutually agreeable work locations. ARTICLE XVII-PHYSICAL EXAMINATIONS If any non-probationary employee who is required to !:lave a City-provided physical examination not related to workers' compensation programs disagrees with the fmdings of the City-sponsored physician, he/she may consult with hislher own physiciail and, if hislher private physician's report conflicts with that of the City physician in terms of ability to work at hislher regular job, then he/she may request an evaluation of hislher problem through a third physician mutually agreed upon by the employee and the City. Cost for such examination will be equally shared and the decision of this physician conceming the continuing ability of the employee to perform hisIher work in hislher regular job without exposing himselflherself to further injury as a result of hislher condition shall be the basis for returning the employee to hislher regular work. ARTICLE XVIII -SAFETY Section I -Health and Safety Provisions. The City shall furnish and use safety devices and safeguards and shal! adopt use practices, means, methods, operations and processes which are reasonably adequate to render such employment and place of employment safe,· in conformance with applicable safety regulations under the State Labor and Administrative Code sections. The City shall not require or permit any employee to go to or be in any employment or place of employment which is not safe. Section 2 -Union Cooperation. Union will cooperate with the City by encouraging all . employees to perform their work in a safe manner. Section 3 -Safety Committees and Disputes. Safety committees composed of Management and Union stewards in the below Iiated organizations will meet no less than six (6) times annually to discuss safety practices, methods of reducing hazards, and to conduct safety training. _This shall in no way remove the basic responsibility of safety from Management nor shall it in any way alter the responsibility of the employee to report unsafe conditions directly and immediately to his or her supervisor. Community Services PUblic Works Water-Gas-Wastewater Field Operations Page 39 of 64 Electric Field Operations Water Quality Control (a) A committee composed of one facilities Management representative. one building inspection representative. two Union representatives, and the City Risk Manager will meet as needed concerning safety matters of the Civic Center. (b) A ten-member Citywide Union/Management safety committee with equal Union and Management membership will meet upon call to review safety and occupational health standards and practices, discuss overall City sa.futy and health problems, andJo act as an advisory group to the departmental safety committees .. The C01)lmittee shall . review all departmental safuty programs and retommendchange where necessary. (c) In cases of dispute over safe working conditions the employee will fIrSt report such unsafu 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 carmot be resolved the Risk Manager will be contacted and the problem will be addressed through the interpretation of the basic safety rules and regulations. Should the problem not.be resolved at this step, the grievance procedure will be utilized. Safety grievances shall be submitted at Step III. (d) In response to recommendations from the Ergonomics Safety Committee, management will develop training workshops which include infonnation on safe . ergonomic work practices. Such workshops will be given at least two times per year. Upon release ofeal/OSHA regulations covering safe workplace ergonomic standards, management will immediately adopt such standards as party of its Injury Prevention Program. ARTICLE XIX -GRIEVANCE and APPEAL PROCEDURE Section 1-General Provisions. The City and the Union recognize that early settlement of grievance or appeal of disciplinary actions is essential to sound employee-employer relations. The parties seek to establish a mutually setisfilctory 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 andlor his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Release time for investigation and processing a grievance .or appeal of disciplinary action is designated in Article IV of this Memorandum of Agreement (MOA). Section 2 -Definitions (a) Grievance means an unresolved complaint or dispute regarding the application or interpretation of rules, regulations, policies, procedures, Memorandum of Agreement or City ordinances of resolution, relating to tenns or conditions of employment, Page 40 ofM wages or fringe benefits, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance or appeal of disciplinary action procedure. (b) Appeal of a disciplinary action means an appeal of any kind of disciplinary action against an employee covered by 1his Memorandum of Agreement. Discipline is defined as suspensions without pay, reductions in pay, demotion or discharge. Reprimands, transfers, reassigmnents, layoffs, and nega:t.ive comments in performance evaluations ere not considered discipline. " Section 3-Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure (a) An aggrieved employee may be represented by the Union or may represent himselflherself in preparing and presenting a grievance or appeal of disciplinary action at any level of review. Grievances or appeal of disciplinary action may also be.:presented by a group of employees. No grievance or appeal of discipIinary action settlement may be made in violation of an existing merit rule or memorandum of agreement. The Union will be notified prior to the implementation of any settlement made which affects the rights or conditions of other employees represented by 1he Union. The Union and the Steward will be copied on all written representation unit I (b) grievance or appeal of disciplinary action decisions. An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance or appeal of disciplinary action. Requests for release time to ' prepare grievance or appeal of disciplinary action shall be made in accordance with ,1he provisions of Article N, Section 3. Beginning with the third step of the grievance or appeal of disciplinary action procedure, 1he Chief Steward or Alternate Chief Steward may assist in presenting a grievance or appeal of disciplinary action and may be present at all Step III, and N ' grievance or appeal of disciplinary acnon hearings. (eg) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Union and 1he reviewer concerned. (e~) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to 1he next step. (f) The grievance or appeal of disciplinary action may be considered settled if the decision of any step is not appealed within the specified time limit. I (g) If appropriate, 1he aggrieved employee(s) or the Union and 1he department head may mutually agree, in writing, to waive Step I and/or Step II of the grievance or appeal of disciplinary action procedure. Page 41 of 64 I (h) GrievarKles or appeal of disciplinary action shall be made in writing and. submitted on forms provided by the City or on forms which are mutually agreeable tu the City and the Union. The written grievance or appeal of disciplinary action shall contain clear, factual and concise language, including; (I) the name of the grievant; (2) a statement of the facts upon which the grievance or appeal of disciplinary action is based, including relevant dates, times and places; (3) specific provisions of this Agreement or specific'City rules, policies, or procedures which the grievance or appeal of disciplinary action alleges has been violated; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance or appeal of disciplinary action, Any retroactivity on monetary grievances or appeal of disciplinary action shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance or appeal of disciplinary action was filed in writing. (j) If the grievarKle 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 grieVarKle in those instances when, under this Memorandum of Agreement, a Union right not directly related to an individual employee becomes the subject of dispute, Union grievances shall comply with all of the foregoing provisions and procedures. (k) For purposes of time limits, "working days" are considered tu be Monday through Friday, exclusive of City holidays. (l) If a mutually agreed solution is reached during any step of this grievance or appeal of disciplinary action procedure, the agreement shall be placed in writing and signed by the City and the grievant or union. (m) Upon request of either perty, meetings to discuss the grievance or appeal of disciplinary action shall be held at any step in the grievance or appeal of disciplinary action procedure. Section 4-Grievance and Appeal Procedure. Step llnformal Discussion. Within fifteen (15) working days after the incident or discovery of the incident on which the grievance or appeal of disciplinery action is based the aggrieved employee shall present the grievance action to his or her irurnediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. Step II: If the grievance is not resolved through the informal discussion in Step 1 or the employee wishes to appeal disciplinary action taken against himlher in the case of a grievance, the employee will reduce the grievance or appeal of disciplinary action to Page 42 of 64 '''1 writing and submit copies to the Department head or bis or her designee within fifteen (15) working days of the discussion with the immediate supervisor or within fifteen (15) working days from the receipt of a final disciplinary action. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance or appeal of disciplinary action to review the matter and prepare a written statement. Step m. If the grievance or appeal of disciplinary action is not resolved and/or the . aggrieved employee is not satisfied \V1th the Step II decision, the grievant or disciplined employee may appeal to the Human Resource Director or his or her designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance or appeal of disciplinary action,me Department Head's deciSion at Step II, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step IV. Ifthe grievance or appeal of disciplinary action is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance or appeal of disciplinary action t:hrough appeal to the City Manager or through appeal to . final and binding arbitration. For the terni oftbis Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Union approval. All Step IV appeals must be filed in writing at the Human Resources Department Office within fifteen (15) working days of receipt of the Human Resource Director's decision at Step 3. lfthe grievant or appellant elects final and binding resolution by the City Manager, the City Manager will choose the methods he or she considers appropriate to review and settle the grievance or appeal of disciplinary action. The City Manager shall render a written decision to all parties directly involved within fIfteen (15) working days after receiving the grievaniJappellant's appeal. If the grievant/appellant elects fInal and binding arbitration in aceordance with this provision, the parties shall mutually select an arbitrator within 90 days from the date of receipt of the written request for appeal. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of fIve arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances or appeal of disciplinary action appealed to . the arbitrator. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifYing in any way, the terms of this Memorandum Of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of Page 43 of 04 I , ... ] I 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 arbitratOl;'s decision shall be submitted to the City, the aggrieved employee and the Union. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. . ARTICLE XX· UNSATISFACTORY WORK OR COl'!l>UCT AND DISCIPLINARY ACTION The City has the right to discipline, demote, or discharge employees for cause •. Non- probationary employees whose work or conduct is illlsatisfactcry but not sufficiently deficient to warrant discipline, demotion, or discharge will be given a written notification ofunsatisfactcry 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 I . PreliminarY Notice of Discipline, Prior to imposing disciplinary action, a supervisor shall provide an employee with preliminary written notice of the proposed disciplinary action, The notice of proposed disciplinary action must be in writing and served on the employee in person or by registered mail or Fed-Ex. The notice of disciplinary action shall include: (a) Statement of the violations upon which the disciplinary action is based; (b) Intended effective date of the action; (c) Statement of the cause thereof; (d) Statement in ordinary and concise language of the act or the omissions upon which the causes are based; (e) Copies of any documents or other written materials upon which the disciplinary action was fully or in part based, (f) Statement advising the employee ofhislherright to appeal from!rnCh action, and the right to Union representation. (g) The date and location of the Skelly meeting and the name of the Skelly Officer Page 44 of 64. I Section 2 -Skelly Meeting. The employee shall have the right to respond informally to the charges either verbally m in writing before the discipline is imposed. The employee shall have fifteen (15) working days from receipt of the notice to request this pre- disciplinary administrative review. The employee may request a reasonable extension of the time to respond for justifiable reasons. The Skelly meeting to listen to the verbal I responses shall be scheduled ,,1th a_City representative who is not the manager recommending the discipline (the "Skelly Officer"). The Skelly Officer shall render a final written decision (the "post-Skelly decision") within fifteen (15) working days of receiving the employee's response, if any, and shall deliver the post-Skelly decision to the employee by personal delivery or registered mail. The Skelly Officer may sustain, modifY, or overturn the recommende<}>disciplinary action. lfthe Skelly Officer sustains or modifies the disciplinary action, the action may be imposed after the post-Skelly decision is delivered to the employee. Sec~on 3 -Appeals. Appeals of disciplinary action should be processed through the procedures outlined in Steps 2-4 of the grievance appeal of disciplinary action procedure (Article XIX, Section 4.) ARTICLE XXI -NO ABROGATION OF RIGHTS The parties acknowledge that Management rights as indicated in Section 1207D of the Merit System Rules and Regulations and all applicable State laws are neither abrogated nor made subject to negotiation by adoption of this MOA. ARTICLE XXII -OUTSIDE EMPWYMENT The provisions of Article 4.7 of the Government Code of the State of Califomia will govern the detennination of incompatible outside employment. ARTICLE XXIII -WORK STOPPAGE AND LOCKOUTS The City agrees that it will not lock out employees, and the Union agrees that it will not engage in any concerted work stoppage or slowdown during the term ofthis_MOA. An employee shall not have the right to recognize the"picket line of a labor organization when peiforming duties of an emergency nature. ARTICLE XXIV PROVISIONS OF THE LAW Section 1. Conformity and Separability of Proyisions. 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 eJdsting State or Fedcrallegislation, such invalidation of such part or Page 45 of64 portion of this Memorandum of Agreement shaU not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. I Section 2. Merit Rules and RegulationJ!. This Memorandum of Agreement shall become a part of the City of Palo Alto Merit Rules and Regulations applying to employees assigned to classifications in the SETIJ unit. As applied to employees assigned to the SETIJ mrit, this Memorandum of Agreement shall prevail over any conflicting Merit Rules and Regulations. . Section 3 -Resolution. The City and the Union agree by signing this Memorandum of Agreement that the wages, hours, rights and working conditions contained herein shall be continued in ful! force during the term of this Memorandum of Agreement except as otherwise provided for in . the Memorandum of Agreement and shall be binding on both the City and the Union upon ratification by the Council of the City of Palo Alto and upon ratification by Union membership. ARTICLE XXV -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 XXVI -TERM The Term of this Memorandum of Agreement shall commence on July 1,2010, and shall expire on June 30, 20g;;l11. _Either party may serve Written notice upon the other party during the period between ninety (90) and sixty (60) days prior to June 30, 200911, 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 the terms and conditions ofthis Memorandum shal1 continue in effect. Page 46 of64 . , , -j , I EXECUTED thb dIY, July ,2010: FOR LOCAL 521, SEW, CTW: FOR CITY OF PALO ALTO: JL Sermer im rril~L NiokRaisch Worksite Organizer 13f\~10GU& Brian Ward . Chapter Chair U?~- . Victor Fadsato Chief Steward Margaret AdIdus Vjce Chair IoelDino Secretary ~J~---s~K~eruw----------------- City Manager Russ Carlsen HIIlIUIll Resources Director Sandra Blanoh Assistant HllIIlliIl Resources Director Marcie Scott Labor Rclations AdministrfltOr Joe Saccio Deputy Director Administrative Services Department Gregg Betts Community Services Director Robert De Geus Community Services Division Manager Darrell Murray, Chief Negotiator (1EDA) Page 47 of 64 REVIEWED: Melissa Tronquet Senior Deputy City Attorney ~ ..... ----- ------'---------- Page 48 of64 ATTACHMENT A . CITY OF PA[OJU.TO . 2009SEIU ,,. ... Job S"m2 SIAn S Sleo 5 ~PPr:'~ ~pprox FLSA 14 -4 I 31 4.127, '.S! 11 77 5, Ill{), I,B( j.4f i~ ~ i3i4 _ ,,5, f- ,1.4 f- ,.4 - '4 -- "I 244 lAesae Buyer , I- N ,1 ,761 :::~ Page 49 of64 -Lead ,Parts Tech , Elect , Malnt.l ; Mach i ; Painter . IWGW ,t S1N".8 Coord 489 IG"" , ~ TB[ 11<A$ SIIIIlem reCh II 456 ~ :or EaulD Meoh 489 ~:;OrMt 283 , 380 HAaw ~ mer """"~ Ind Wa.!e-Insoec iii( I Irwin!, I Wasta H~j7J~ldSVC 306~ 293 1 & ZOO ~ ~T I' ibra~ Asst l Sol 542 ~DI-T ~Spl-TL SvcsSoec I MaintMAcll -s • Lead .. 1.7 ,.7i -t-t- )~.7H~~t- 1.94 i1r-~ !-±-I-I--I-- Page 50 of 64 .30? 567, 16 ~ ~-'~&'~E"n(-----------+--~~~ ?, Pnllt!.. ,SOM I-IPiiilCi> I Pnllr. .. TPiillr"'- I Powe, ,00' IPrnd I Pmn ~ram 302 I 303 III 3613 :W~ Preiect !"noineer t. Leae ill ,55 1.39 4 3 ',7 -3490 preiect • s 2il9 , Evlc"fiicl ~:+-~,:H-~ I- PageS10f64 ~,749, 4 r.323. :;:+-~ 4 ~ CI1Y OF PALO ALTO ~-.-____ " ___ '""'!2009 SEIU Scheaule in! A·,~n ~~: :;: i*~~~ ~ Public Wk. I install Reoal, r Cert _ !9._ !e. !7.50 !9.44 =I~~~ "I---=f~~~~f-' i"289 0iiIiiSliilf Ceil 1l!:35 13. 1259 lUll ~v,;t TAr.h 30.27"--, 278 ""TeCh Page 52 oC64 1I0n.1 771. i , I 1 APPENDIX B. APPRENTICESHIPS WATER QUALITY CONTROL OPERATOR TRAINEE may lead to positiollB within Water. Quality Control. ELECTRICIANILINEPERSON • LINEPERSON/CABLE SPLICER APPRENTICE: MayJead to Electrician or LinepersonlCable Splicer positiollB._The Utilities Department is proposing to formalize the Apprenticeship programs in the.Electric Section to develop journey level electriciallB and linepersonlcable splicers. TheJollowing are basic concepts/principles to be incorporated: I' 1. Positions/classifications to be ideotified through the normal budget process· three initially. 2. The journey level position will not be a promotional opportunity for anyone other than the appreoticeunderfilling the position, so long as that apprentice is successfully progressing through the program. 3. Employees in Electric Operations who qualify will be giveo flXst consideration for the apprentice position prior to other City classifications or recruiting from outside the City. 4. A letter of agreement will be entered into by the apprentice and the City ideotifying the terms and conditiollB of the program. 5. The program will normally require 36 months to complete. 6. Normal progress through the program will be in periodic increments with formal evaluations. . 7. Salary steps will be established to bridge the Electrical Assistant classification into the journey level classification. 8. A process for initial selection and placement in the progrern will be established. The City and the Union agree to review or develop job descriptiollB to better reflect the qualification necessary to attract and retain successful candidates for this program. It is further agreed that the job descriptiollB will not warrant additional compCllBation. :9. A procedure for removing an UllBuccessful appreotice from the program will be developed. 10. A task force including journey level persons ,vill be assigned to detennme the content and approach to specific elenieots of training. Pllge 53 of64 11. Training will consist of on-the-job (OIT) and after hours elements (study and formal. classes). Off-the-job training costs will be funded by tuition reimbursement and departmental funds. Personal time spent in off-the-job training "ill not be compensated. 12. The apprentice will be under the continuing guidance of anappropriatcly qualified journey level person during OIT. Such journey level persons will be assigned by Mansgement from among volunteers and will receive no additional compensation. 13. Qualifications/progress wilJ be verified by appropriately kept records. 14. Unless specifically stated otherwis.e, reguiar City personnel policies and MOA provisions will apply to the apprenticeship program. 15. This program may become a conceptual model for apprenticeships in other divisions or departments. Page 54 of 64 . -I ! APPENDIX C. ALTERNATIVE 4111 WORK SCHEDULE The City and Union have agreed to the following alternative work schedule for_Public Safety Dispatchers: . I 1. The City agrees to maintain a minimum of 18 permanent dispatchers onjlaid status for this alternative 4/11 work schedule. If the Corumunications Unit falls below the minimum staffing levels for Corumunications for more than l20-days (4 mouths), the City and the Union will meet and confer over whether to continue the 4/11 schedule or . revert to another schedule (such as 4/10) until such time as there are 18 permanent dispatchers on paid status . . , 2. The City agrees that in accordance with FLSA requirements the dispatchers will receive overtime for all hours worked outside of the regularly scheduled work hours of the 4/11 schedule. Page 55 of64 . I I I I APPENDIX D -DEPTIDMSIO~ CLASSIFICATION WORKDAY OR WORK. WEEK VARIATION Section L Exceptions to Standard Workday or Work Week for SEIU Representation . Unit: COMMUNITY SERVICES Arts & Culture Division Volunteer -Coordinator Each week (30 hours); 15 hours of unscheduled time; 15 hours· of schedUled time Library Department Coordinator, Library ProgtaIDS Librarian Senior Librarian Library Specialist Library Assistant Library Associate In a given workweek, staff may work three eight-hour days, one seven-hour day, and one nine-hour day. On a voluntary basis, staff may work five non-consecutive days within seven. Section 2. Rnles Governing Flexible Work Hours. These rules and procedures are established pursuant to Article VI, Section 8, and are an application of Article VIII, Sections. I, 2, and 3 of the Memorandum of Agreement to the classifications of Coordinator, Recreation Progtarns; Produoer, Arts & Sciences Progtams; Program Assistant; Theater Specialist, in the Recreation and Arts & Culture Divisions of the Cormnunity Services Department, and the classifications of Associate Planner, Building Planning Technician, CDBO Coordinator, Engineer, Executive Secretary, Office Specialist, Planner, Senior Planner and Staff Secretary in the Planning and Community Environment Department. (a) Flexible Work Schedule I. Employees in the covered classification shall be permitted to arrange flexible work schedules with division approval, providing that such schedules shall include forty (40) hours per week. 2. Standard daily office hours shall be Monday through Friday. between the hours of 8:00 a.m. and 6:00 p.m. Flexible hours may.occur for supervision of; and/or attendance at, . evening programs, meetings, weekend events, or other progtarns. Page S6 of 64 (b) Overtime I. Emergency call-out work shall be defined as overtime work and compensated per standard City practices. 2. If the need arises for overtime work due to an unusual circumstance calling for extra bours or due to a special event, compeJlll8:tion shall be allowed with prior approval of the Director of Recreation, Director of Arts and Culture, or the Director of Planning and Community Environment, and shall be compensated for, as spelled out in the Memorandum of Agreement. Section 3. 2080 Plan (a) Either the Union or the City may withdraw from the Plan bygiving the other party 30 calendar days written notice. In the event of termination of the plan, the covered classifications will return to an 8-hour or other authorized workday as provided under Article VIII, Section 1, of this Memorandum of Agreement. (b) Provisions of the 2080 Pian are as follows. To the extent that these provisions are in conflict with other provisions of the Memorandum of Agreement, these provisions will prevail. (c) The 2080 Plan or "12 hours per Shift Schedule'~ is an authorized work schedule for the Electric System Operators and Water Quality Control Plant Operators. 2080 Plan Under this 2080 Plan, each employee's hours of work per year may not exceed 2,240. For scheduling purposes, and subject to the Merit System Rules and Regulations, the employee will be guaranteed not less than 2080 hours per year, or no less than 52 weeks at the normal number of hours worked per week. Any employee covered by the Plan who works up to 2,080 hours per year is compensated for all hours worked at the agreed upon rate. The City mlla! pay overtime for all hours worked in excess of 12 in any workday, 56 hours in any work week, or 2080 hours in 52 weeks as the case may be. The rate of overtime wilI be at time!llld one-half the employee's regular rate of pay (or current contract overtime rate, if diiThrent). Shift Schedule , The shift schedules combined must provide full 24-hour, seven (7) days per week coverage for the Utility Control Center and Water Quality Control Plan. The shift schedule shall be a rotating schedule. The Electric System Operators' shift schedule will reach the equivalent of 40 hours per week in five weeks. The 12-oour shifts begin at 7:00 a.m. and 7:00 p.m. The Relief shift shall begin at 7:00 a.m. and!llld at 3:00 p.m. with lunch taken while working. The shift schedule shall be rotating schedule. The Water Quality Control Plant Operators' shift schedule will reach the equivalent of 40 hours per week in two weeks. There will be four 12-hour shifts that begin at 6:00 a.m. and 6:00 p.m. The fifth shift will be a 4/10 shift that begins at 6 a.m. on three days, and at noon on the fourth day. Page 57 of 64 ._) i . I Pay Period Pay periods and workweek for the System Operations will begin Sunday at 7:01 a.m. Pay periods and workweek for the Water Quality Control Plan Operators will begin Saturday at 6:01 a.m. Wages Wages will be based on the City of Palo Alto Compensation Plan, which may vary from time to time as mutually agreed upon . . Overtime Under the 2080 I:'lan, the City will pay overtime for all hours worked in excess of 12 in any workday r 56 in any work week, or 2080 in 52 weeks, as the case may be. Overtime will also be paid fur hours worked when an employee is called in to work other than their regularly-scheduled shift The overtime rate of pay ,,111 be one and_ one-half times (or current contract overtime rate, if different) of the employee's.regular rate of pay. All overtime worked will be paid to the employee. No oompensatory time off for overtime will be allowed with the exception of Water Quality CoritrolOperations. Relief Employees This provision only applies to the Electric System Operators. The five Operators share the relief week evenly as they rotate through the five week cycle. Relief employee(s) will be used utili2ed within the 12-hours shift schedule only when relieving for the System Operators on shift When not relieving, they will work four eight-hour shifts. When a vacation relief week results in a 36-hour or 48-hour week, the operator working said week shall be paid at one and one-half (11',) time their normal rate of pay for hours that exceed thirty two (32) hours. Relief Duties [ This provision only applies to the Electric System Operators, An employee who is scheduled to perform relief duties shall be available for duty in revolving shifts on any day of the week and niay be assigned for relief in any shift without advance notice. Relief employees will be paid standby pay during their relief week Standby This provision only applies to the Electric System Operators. An employee who is on relief duties is covering standby, and will be oompensated acoording to Article VIII, Section 7 (a) of the Memorandum of Agreement, If the relief employee is on vacation or Page 58 ()f 64 otherwise unavailable for relief duties, the employee(s) on their three or four-day off period will be first on standby. Management reserves the right to utilize Management personnel as Operators on a short- term, as needed basis, if no Operator is available. filling Vacant Positions If the City elects to fill a vacancy other than by reassignment of the shift or the utilization ·of prior or succeeding shift personnel, the following procedure shall be used: Employees will be called according to their position on the Pre-arranged Overtime List (POL), with the person with the lowflst balance being the fU'st one called. The purpose of the POL is to fairly distribute the available opportunities. If an employee turns down the overtime, that arnonnt will be added to the employee's POL balance. If an employee cannot be'contacted for such assignment, the employee will not have any overtime added to their POL account balance. Shift Changes Shift changes caused by scheduled time off or sick leave will not be considered an official change in shift. Maximum Hours Worked No employee shall work more than 18 consecutive hours. Rest Period In a 12-hour workday, employees are entitled to a rest period of 8 consecutive hours after working 6 hours overtime during the 12 hours immediately before the regularly scheduled hours of work on a workday or non-workday. Holidays . Employees who begin their day or night shift on an observed holiday will receive overtime premiurn in accordance with Article X, Section 3 of the Memorandum of Agreement. Employees who work a schedule where a regular day off falls on a.holiday will be paid for the hours they would have normally worked on that day. Employees working for Water Quality Control Operations may accrue holiday time convertible to vacation. Sick Leave Sick leave will be earned as indicated in Article XII, Section lea) of this MOA, and shall be charged in increments of one hour. Floating Days Off Floating days off will be converted to hours at eight hours per day and credited to the employees' vacation bank for use as. scheduled vacation. Page 59 of64 I Vacation An employee's total entitlement will be converted to hours (eight hours = one day). A workday will consist of 12 hours, and employees taking vacation will be charged 12 hours of use. Two week notification is requited for any scheduled time off. Only one person at a time may be scheduled off. . It is the intention of the City that vacation be taken in units of one work week; however, with approval ofhlslher supervisor, an employee may use hls/her accrued vacation in units of less than one work week. , Meals Shift employees shall be pennitted to eat their meals during work hours and shaH not be allowed additional time, therefore at City expense. . Shift Premium Shift premium will be handled in accordance with the current Memorandum of Agreement bt)tween the City and the Union, Article VIII, Section 8. JuryDuiy Time off for jury duty which occurs on a regularly scheduled workday will result in the employee being credited with up to 12 hours worked, for pay purposes. Employees called for jury duty who are working the evening portion of the 12-hour schedule will be placed, for payroll and schednling purposes, on the day shift for each scheduled day :mch employee is required to report for jury duty, and will not tie required to work the evening 12-hour shift before or after being required to report for jury duty. However, :mch employee shall return to work on the day shift upon being released :from such duty if there are at least four hours remaining prior to the end of the day shift. All other provisions of Article XII, Section 5, of the current Memorandum of Agreement shall apply. Page 60 of64 , -, ; APPENDIX E. IN-LIEU PREMIUMS L For employees in the following operations. assigned to work schedules other than Monday through Friday, the calendar day will be considered the holiday for premium pay of in-lieu scheduling purposes: Communications Water Quality Control Animal Control GolfCollrSc Utilities Services Landfill Open Space Electric System Operator 2. If December 24 and 31 fall on Sunday, then the preceding Friday will be designated for purposes of excused time off, except in the case of Community Services staff who may be scheduled to work on Saturday, in which case Saturday will be designated for purposes of excused time off. For Open Space and Library personnel, designation of excused time offwill be based on Park and Library schedules and employee preference. Page 61 of64 APPENDIX F. COMMUNICATIONS DIVISION PROMOTIONS 1. Promotional opportunitieS 'Within the Communications Division will be carried out in compliance 'With procedures set forth in Article VI, Section 5, of the Memorandum of Agreement between the City and SEW Local 521, except that: a. In sub-paragraph (e) of Article VI, Section 5, the term "seniority" shall be defined as division seniority . . b. Division seniority will be calculated from an employee's first day of employment in the division, minus any unpaid leave. Page 62 afM J l i -.i ! i ! APPENDIX G: SIDE LETTER OF AGREEMENT SIDE LEITER OF AGREEMENT ON CPA-SEIU CLERICAL STUDY 1. The parties will meet and confer over newly proposed clerical job descriptions. 2. Upon completion of the above meet and confer process, the City will issue any new . or revised re-allocation letters to affected clerical employees within IS working days. 3. The Union and/or affected employees will have 15 working days to appeal any reallocation to the Human Resources Director. 4. Allocation appeals will be heard by the Humli¥l Resources Director or designees within a reasonable timeframe agreed to by the parties. 5. Decisions from such appeals will be issued by the City within 15 working days of eaeh appeal. 6. The Union and/or affected employees will have 15 working days from.receipt of the allocation appeal decision to further appeal the matter to Binding Arbitration, pursuant to the provisions of Article XIX, Section 4, Step IV (Grievance Procedure) of the MOA. 7. The City and the Union agreed to conduct a clerical study in May 2004. The stody was completed in May 2006. It is expected that classification and compensation changes will be made as a result of this study. The City and the Union are to meet and confer over the results oftbe study. Any changes to classification or compensation as a result of this process will become. effective 5/1/06. Page 63 ot64 -i ! , ! APPENDIXH Withdrawal of Unfair Practice Charges and Grievances Removal of Letters of Reprimand Upon ratification by the Union and approval by the City Council, Union and City agree to dismiss the following Unfair Labor Practice charges and grievances, The parties agree to take all necessary actions to complete such dismissals: • City v, S,EIU (SF-CO-210:M) • SEll] v. City (SF -CE-690-M) • City v, SEIU (SP-CO-214-Ml • SEIU v, City CSF-CE-704-M) • SEIU v, City (SF-CE-729-M) • Grievance #62534-521 • Grievance #59669-521 Upon written confinnation that the charges and grievllnces above have been withdra\\1l, the City will remove Letters ofRepritnl!!1d associated with the "involulltary fui:lough" (characterized by City as unlawful strike), . Page 64 ai64 ATTACHMENT "D" Resolution No. 8994 Resolution of the Council of the City of Palo Alto Imposing the City's Last, Best. and Final Offer to SEIU, Local 521 Pursuant to Government Code Section 3505.4 WHEREAS, the City of Palo Alto (hereinafter "City") and the Service Employees International Union, Local 521, CTW (hereinafter "Union',) (collectively referred to as the "Parties,,) were signatories to a Memorandum of Agreement ("MOA ") !hat expired JW1e 30, 2009 setting certain terms and conditions of employment for employees in the SEIU General Employee bargaining unit; and WHEREAS, beginning May 4, 2009 the City and Union negotiation teams have met and engaged in extensive negotiations over the terms of II successor to said Memorandum of Agreement, meeting approximately twenty six times in an effort to agree on the terms of II successor Memorandum of Agreement; and WHEREAS, since presenting its initial proposal to the Union in May of 2009. the City made concessions in its negotiations with the Union, reducing its two year . contract proposal by nearly $2 million each year over the course of the meetings between the Parties; and WHEREAS, although the Parties reached tentative agreement on at least seventeen items. the City and Union remain far apart on major economic terms; and WHEREAS, on October 16, 2009, the City submitted the City's last, best and final offer to the Union and II Jetter explalning the terms of that offer; and WHEREAS, on October 20, 2009 the City met with the Union negotiating team to further discuss and respond to questions about the last, best and final offer; and, WHEREAS, at the meeting on October 20, 2009, the Union verbally rejected the City's lest, best and final offer; as a result of the Union's rejection, the City's last, best and final. offer did not lead '10 an agreement on the terms of a successor Memorandum of Understanding; and WHEREAS, after the Union rejected the City's last, best and fmal offer at the meeting on October 20, the City declared that the Parties were at an impasse and informed the union verbally and in writing; and . WHEREAS, P1ll'SlUlllt to the City's Employer-Employee Rela,tions Rules contaIned in Chapter 12 of the City's Merit System Rules and Regulations, the Parties discussed potential methods of resolving the dispute on October 20 and 22, 2009; and 119102l ,hia61t81 1 WHBREAS, the Parties could not reach agreement on potential methods of resolving the dispute and concluded discussions on that issue on October 22, 2009; and WHEREAS, there are no mandatory impasse procedures and the Parties are not required to proceed to interest arbitration; and rernlllllilt an lIllpllSSe; , WHEREAS, in such circumstances Government Code section 3505.4 authorizes the City to unilaterally implement its last, best, and final offer; and, WHEREAS, on October 22, 2009, the City gave the Union written notification that the City Council would consider a resolution to unilaterally implement the tenns of the City's last, best and fmal offer at tha City Council meeting on October 26,2009. NOW, TIlEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. ModificatioDs of Tel'lllS. The following changes in the terms and conditions of employment of members of the SEW General Employee bargaining unit shall be implemented as set forth below, effective immediately upon adoption of this resolution except as otherwise specifically provided below for specific teroos and conditions, with additional terms underscored and deleted terms identified by over-striking: Modifieatitm 1. The terms ander which re1esse from duty to conduct union business is authorized, currently set forth in Article IV of the MOA, are hereby moditled and imposed as follows: "Section 3 • Release Time. It is agreed that, as long as there is prior notice as specified below to the Supervisor with no disruption of work, stewards shall he a1lowed'reasonable release time away from their work duties, without loss of pay, to eel iii representiftg a unit employee or employees on grievances or matters within the scope of representation, including; (a) A meeting of the steward and an employee, or employees of that unit related to a grievance. (b) A meeting with 'Management. (c) Investigation and preparation of grievances. Grievances may be transmitted on City time. All steward release time shall be reported on time cards. . 091m 8l> 82.mal I Section 4 -Advance Notification Prial teBefOl'll Leaving Work Location. The Union agrees that the steward shall give no less than one (1) full business day advance notification to hiather supervisor before leaving the work location. in those cases involving' this section eJ(cQ,pt that the requirement for !l full business day advance notice to the reolacement n;presentative's supervisor shall not apply." Modlfieatl!!n 2. The terms under which classification changes and reclassification requests are managed, currently set forth in Article VII of the MOA, are hereby modified and imposed as follows;' ''Section 4 .. ClasFifipation CbampaL (Ii) During the course of this agreement, the Union and affected employees shall be notified in advance of any contemplated changes in classification description, wage range or steps. ~uch changes shaI1 be .subject to the meet and confer process auriag the term ef t1HsMemElfllB!i1ll'll Elf ~emeBt. Such meet and . confer process shaI1 be concluded within no more than thirtY (30) days fullowing deliviu of the City's notice to the Union. Jfthe Union and the City cannot reeoh agreement on the appropriate pay level from a job so reclassified. the elllSsi:!ielitiell ahSH fIl'.'elt Ie itsfalllll$' stMlle Union may. within ten nO) City busilless davs following the conclusion of the meet and confer ProceSS described above by deljyery of v.Titten notice to the Hurn!m Resources Director, reftr the diSPUte oyer the proposed wage reoge or ste,ps to arbitration at Step IV of the Grievance Procedure set forth at Article XIX of thjs Memormdum of Agreement. Section 5-Reqlawfication Regyests. (a) An employee or hisIher representative may request in writing a re-evaluation of hislher job Pased on significant permanent changes in job content or significant discrepancies between job content and classification desoription. The request must be in writing, contain justification and may be made only on an annual basis during the period of September 10 through October 10. A statement by manilgemeIit that a job reeValuation request will be suinnitted with the departmental budget does not relieve an employee from the responsibility of submitting hisIher own request during this period. The Afladri9I!Btef ef Cempelll!aH9a Human Resources Director or his or her designee will initially 2 respond to such requests within ninety (90) calendar days by notice to the employee and the union; however, this timeline may be extended if necessary. Suob. response shall include any reclassification to a different classification or changes in description that the City believes are warranted and any related . changes in applicable pay range or steps. If meetings are held, the employee may request representation. If a reclassification is approved and results in an increase illsa:lary, it -shaH~e-retrcactive-to-the date-the Bmp!oyeeod:Jnion frl~ request fOr the reclllSSification. (b) If the employee or Union disagrees with the accuragy of the description of duties . resulting from the S!:!:!4y conducted pursuant to subsection (a) of this Section or with the wage range or steps assigned by the City as a result of the study. the ~ploYeefl or Union rusy, within ten (10) Ott business davs of delivery of notice of such determination. appeal ~h decision st*.ieet Ie tiltis fII'Eleess iii l1eeepe-with under step IV of Article XIX. Grievance Procedure. (c) In a dispute under Section 4{a) Of section 5(l:!) above. the arbitrator shall render his or her decision on the appr!J.llriate wage range or steps within twenty-one (2 n days after the initial hearing date. The same time line will be observed for @mules over the accuracy of the revised classification description. The parties will notify the arbitrator of thl. deadline at the time of the arbitrntor's selection. In ~aching a decision on Wl!!le /'!luge and steps under Section 400 or Sib) above. the arbitrator shall base his or her award on the factors traditiqnallv taken in1g accgunt in the establishment of compensation. When decidlng a dispute over the !IllC1II'lICy of the revised classification description nnder section S(b) above. the arbitrator shall identify the modificatioiJs of the ore-existing cla'!!jflcatjon ngsaty to accurately reflect the pennanent changes. if any. that lw.ye been inW!emente4. Upon receipt oethe arbitrator's award. the City shall implement the revised alas.iDeation and wal!!! range or stt:ps as provided in the award except as provided under subsection S(c} of this section below. Not withstanding an arbitator's award pursuant to any appeal process,the City retains the right to forego implementing the changes and the proposed changes shall revert to the status quo as it existed before tbose changes in duties occurred or were proposed. (d) An employee may submit a request for reclassification for the seme classification no more than once every twenty-four (24) months." Modification 3. The tennsgoverning the realignment of p!>sitious and management of the sllrvey data base, currently set forth in Article vn of the MOA, are hereby modified and imposed as follows: "Section B • Rea!i!!!1!ll!llltS and Survey Data Base. (a) Management and the Union have agreed to II compensation survey data base structure which identifies specific benclunatk classifications for job families. . clmifW!Jtious within the job families of each benchmark classification. He 0910111118261181 3 elassifiemi_. IiUIV!lY agencies til be 91!P.<eyeEi and SU~ classification matches. Survey Cities include: Alameda Berkeley Daly City Fremont Hayward Mountain View Rlldwood City San.Jose- San Mateo Santa Clara S. San Francisco --8wmyvale- The dattlbase is intended to elimi!l~e .4upu~e efia!ts i!l8~Bg ana m!enElaat d~ dlsp1HeS provide one source of information concerning how the compensation paid to employees in barglning unit lob classifications compares to that paid In' other employers. The Cjty will update the survey databese ~ tIjlliateEI b;)' :Msesgemellt and send the Union a copy sent te the USeB six weeks pftef te the befure ~iration of this agreement. This survey will bee_ the ellllis fer consjdered in oonneclion with special adjustment proposais in anccessor agreement negotiations. By agreeing to a survey databese, neither Union nor Management is under obligation to propose or agree to sPecial adjustments. Ell) A1 'IIle feE!Uellt ef ei'llleJ; ]l~'; tbrBglmellt aee the U.Ili9l! lBllf periedieally ~v the data billie 9INettlfe. AJ!]luatiee fer re&!!1WM1tli review !!lllllt be !!l!Ide II.EI later thai!... QataDef 19 sf 'lila ~!lP befere eealmet e!!I'imlisa. Slieli fe>liew lI'I:IIy iBe:llltle en t 'aaasa ef tie elassHleflti8M a.eEi Ml selefy SV+"'&)' at e1ilteE OOjeeti'\'e liMa." Modlficatiori 4 •. The teIIl1S under which the City will provide shirts to certain employees of the Utilities Division, currently set forth in Article IX of the MOA are hereby modified and i,mposed as follows: "Section 1-Uniforms (e) Except in the UtUm Divjsion. ~ City will make available. as 'an alternative to the efllllge shirts CWTently provided under Section 1(a), six (6) ~n polo shirts. Emplovees in the Utilities Division wm be provided with six (ti) long- sleeve shirts !llld two polo shirts. Employees will be responsible for laundering the shirts. Damaged or otherwise unwearable shirts will be returned to the emolovee's su.pervisor !llld ~Iaced by the City." Modtfl!ll!ti!m 5. The tenns under which floating days off with pay will be scheduled, currently set forth in Artiole X of the MOA are hereby modified and imposed as follows: "Section 5 -Floating Dan Off. Floating days off with pay will be scheduled by Management as follows so as to produce three-day weekends. Nothing herein shall be cO!!!!trued to reguire duplication of it holi¢1y alreasly granted befure tbls Resolution ~: 0il1022 s118251181 4 August 2009 One floating day gff . September 2009 One floating day off March 2010 One floating dllY off The following conditions will hold: at least thirty days in lIIlCe. (b) If in confonnam::e with this section, Management is uriable to schedule a day off in the month indicated, for reasons of shift operations, work scheduling or any . other reason, the floating heliday will then be added to the employee's vacation accrual on the first pay period of the foUowing month. (c) If an employee fails to take a day off as scheduled by Management under this section, the day off so scheduled will be forfeited." Modifleatlol! 6. The terms under which employees accrue vacation, consistent with the existing side letter between the City and Union on the 8IlIlle subject, ere hereby memorialized and imposed as follows: "Section 1 -Vacation Accruals. Each employee shall be entitled to an annual paid . vacation, accrued as fullows: . (a) Less l8tm few f1) ~ First day of continuous service through the last day of the fuurIh (4111.) year: 80 heurs vacation per year. . (b) First day of the fifth year of continuous service through the last dav of the ninth ~eigI!t (8) yeaM!,; eelltinfteus sl!!¥.ieel 120 hours vacation per year. (c) First dey of the llillditenth (lOth) ~ear of continuous service through the last day of .!l:!\l..'lllil!leel\ (13) fourteenth fl4t ) years' sea_slils sElif'jljee: 160 hours vacation per year. (d) First day of the felilrtellB~fifteenth (15th) :rear of continuous service through the last day ofthe eighteel\ (t8)!!inereenth (19:") years' eaatillB61!9 sl!!¥.iee: 180 hours vaCation leave per year .. (e) J?liilMBIIBTwenty (20) or more years: 200 hours vacation leave per year. Employees may a<)crue up to three tirnas their annual vacation leave witheut loss of vacation days. In the event the City is unable to schedule vacation and, as II result theracf, the employee is subject to 1088 of accrued vacation, the City shall extend the vaclltlon accrual limit up to one year. in which tima the excess vacation .In1lllt be scheduled and taken. As long as there is no interference with departmental operations, there shall be PC unreasonable restriction of increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave." Modlfi!littlon 7. The folIowing terms under which employees will take unpaid furlough days are hereby imposed:· employees to take unpaid furlough hours off to offset any reimbursements requested and . paid durlWl FY O!HO pursuant to Article XIV. section 10 (Tuition B!jmbursement and Twining Pro!l11Wls) of the expired City-SEIU 2006-09 MOA before the elimination of the Tuition Reimbursement program. The dates and time:; to be observed as ummId furlough time wi!! be established by the affected employee's department head or his or her designee after providing the employee an opportunity to express his or her preferences." ModlOe.ation 8. The terms under which the City, employees and future retirees will contribute toward and provide health insurance benefits for members of the General Employee unit and future retirees, currently set forth in Article XIV of the MOA, are hereby modified and imposed as follows: "Section 1 • Health PlBn (a) Active Employees L JMreetP/$ lIUQ!7 tIhe City will pay up to the monthly medical premiUm for the 2~d ;nost expensive plan among the existing array of plans. exeeot that for increases that go into effect after January 31. ZQIQ the City and p!!rticipating . employees will share equally the first ten percent nQ%'! of each premium increase that Occurs for the plan in which the employee js enrolled at their respective level of enrollment (j.e. one party. two party. famjiYl. If a given increase exceeds ten peroent (lO%)' the balance of that increase will be paid l:!v the City. If sufficient increases occur that the emplQyee portion of the premium fur the plan in which he Of she is enrolled ~guals ten oercent (10%) of the total premium at the emplovee's level of enrollment, the emplovee's share of further premium illOOj •• flI! shall be ten Percent (J 0%) and the City's share shall be njnely percent f9Q%). City medical premium contributions will be ptOIated for part·time erooloyees hired Or IlllWly assigned to a part-time work schedule on or after Januant 1. 2010 based on the number of hours Iler week the part-time employee is assigned to work. If PERS changes the plaits it offers. the City and the Union will meet and confer over the City cantinuing to provide an equivalent benefit at an equivalent cost. Effectiye February 1. 2010, with premiumincreasfll! tlmt go jntp effect after January 31. 2010 the Citv sball con1ribute to its retiree iUSWance trust (the PERS retiree medloa! trni¢ or its successor) an amount not less 1han the amount of premiums paid by active employees in the bargaining unit in the 6 i -1 !l1!lI!OOtive calendar year as a result of the sharing of the first 10% of each mmjum increase as provided above in this parlllm\Ph I. The City shall make one contribution in the fiscal vear '" coyer the entln'i amount payable to the trust under this paragraph !lll of the nrecedjng December 31. . 2. Filf the term sf thls AgreIllllMt Through December 31. 2009. the City will ::::::::::::::::::::~I~~~I~~~e~Q~llm~D~~~<m~~~E~R~S~~£·~~~,~w~mr~~~'w~h~~~~~~C~~~~·~~m~~~=··~·::::~~~ 2006 open enrollmeut period and remain in PERS Choice for maximum calendar year eo.payments for unrelmbursed costs inCUll'ed due to the difference between the PERS Care maxim.um calendar year eopayment· responsibility and the PERS Choice maximum calendar year copayment responsibility. The tota! payments per employee will not exceed $1000.00 annually unleas employee has a one dependentlfamily coverage in which case annual payment will not exceed $2000.00. The City has agreed to provide an annual amount of $50,000.00 to add!:ess these costs. If total claims for reimbursemant exceed available funds, the City will use any unused tuitinn reimbursement. funds budgeted for SEIU for these prupDSeS. Any money left from each year will carry over to subsequent years of this contract. 3. The City agrees to offer II prl;lgram to active. SEIU employees enrolled in PERSCare as of 9/1/06 who elect the PERS Choice health plan in which the City will reimburse the employee and/or dependents for any covered medical expense which exceeds the $2 million Lifetime Maximum Benefit. (b) Health Plan Co"erage for Future Rellrees Hired Before January 1, 2005. Monthiy CItY-paid premium contributions for II retiree-seleuted health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employeea' Medical and Hospital Care Act Effective 111107 the City's monthly employer contribution fur eacJi retiree sbaJ.l be the amount necessary to pay fur the cost of his or her enrollment, in a health benefits plan up to the monthly premium for the 2nd most expensive plan offered w the SBIU . employee (among the existing array of plans). However. the City OOlltribution for an emplovee hired before Jan!ll!!y 1.2005 who retires on or after January 1. 2010 shall be the S!!me contribution amount it makes from lime to time fur active City emp!pyees, except that emplpyees retiring after Jan!ll!!y 31. 2010 but on or before June 30, 2010 shall not be required to pay any premium increase that first takes effect after January 31.2010. For 2006, the contribution for dependents is ~ (~~% in 2097.li!) of diffi:rence between the applicable "Employee and One Dependent" or "Family", maximum employer ~ontribution for Active SRIU employees and the maximum monthiy employer conttibution for "Employee Only" coverage. This contribution for dependants will increase annually by 5% of the difference between the single party premium and the two or family member premium, unill such time as the . amounts are equal. Q91022Bh 8261181 7 (c) PERS -Health Benefit Ve9ttng For Future Retirees £f!ectJve January ], 2005. The CalPERS vesting schedule set forth in Government Code section 22893 will apply to all SEIU employees hired on or after January I, 2005. Under this law, an employee is eligible for' 50% of the specified employer hea.Ith premium contribution after ten years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each ~;;;;;:;;;;;:;;;;;:···;;;;;;;;:;~;;;;;: ... ;;;;;:···:~-~=;;;;-.:.-':~~~di~·Ii~;~7~:e~·~tly~ear¥5.~;~~~nIi~~~~~a~~c~fo~· ~~=~·~~~~;;;s~em~·H~'c~:~:S~di~~~th~~~e~ein;1· e!~pi~!~y:~r~Wll~···~·~~begntr~k~~~:r~~~I:;;;;;;;·-···:-';:·-·=·;;;·=;;;;-=·-·=-:·~·- upon retirement for 100% of the specified employer contribution. FWwever, the . maximum contribution for family members will be 90% of the specified employer contributioo. The City of Palo Alto's health premium contribution will be the .. minimum contribution set by CalPERS under section 22893 based on a weighted average of available health plan premiums. Cd) Coverage for DOlmlStic Partners. Do'fMsllc Partnership Registered with the California Secretary of State. - Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. Domestic Partnership Not Rilglsteret/ With the California Secretary of State. Domestic partners who meet the requirements of the City of Palo Alto Declaration. of Domestic . Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, net to exceed the maximum monthly City employer_contribution for one-perty coverage under the CalPERS Health Benefits Program for SEIU members. Evidence of premium payment will be required with request for reimbursement. (e) At City option during the life of this agreement tmd if otherwise available, the City may offer an incentive payment in lieu of City-paid dependent or family . medical coverage fur those employees who voluntarily decline dependent coverage. (f) Alternative Medical Benefit Program. If a regular employee andlor the employee's dependent(s) are eligible fur medical illSUIance through any other employer-sponsored or. association-sponsored group medical plan, the employee may elect that alternative medical insurance coverage through the other employer- sponsored or aSsociation plan and waives hlsIher right to the City of Palo Alto's medical plan insurance coverage for same individuals. Employees alecting altemative coverage and waiving City coverage_will receive cash payments equal toepproxirnately half of the "average monthly-premiums" for their medical insurance coverage. "Averaged monthly premiums" are the average of the Kaiser HMO. Blue Shield HMO and PERS Cboice PPO premiums of the employee's City medical Coverage available through the CalPERS Health Benefits Program. 1'M i'tft8S fe, U!Q()6 lIfE ell fellews: 091022 ill 826l18l 8 ODs Part)'! $29S.00 TM PiIA;'1 !>41GJlg Family: $S3G.99 The rates for 20o;t2 are lIS follows: One Paity: $2311.1111 $26Q.QO Two Party: $4(;9.1)1) $520.00 Family: Sa9S.91l $675.00 fgllf the State of California or federal government requires the City to participate in and contribute toward coverage under any medical plan outside ofPBMflCA. the City's total liability for enrolled emPl!>yees and retirees and their eJigible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The City will meet and confer with the Union over the imoact of such change on maltel!! within the scope of !'!l!1f!!llA!lt9P before implementing any change. . !h.LN otwithBtandinl !!.!IV mecified effective date set forth· in this section I. the City will not imJllement reductions in ita health in!lll1'8tlge CQQlributionl! for active employees or future retirees without jssuing Ii general notice of its intent to do so at J",,§t thirtY (0) days before the actuall,lffective date of the change (whether the same or different than the s.pecified dateW above). This paragraph shall be deemed null and void as oflune 30. 2010," Modifigriinll ? The terms under which the City will reimburse tuition and related expenses incun:ed by members of the General Employee unit, currently set forth in Article XIV of the MOA, are hereby modified and imposed lIS follows: "Section 1Q' ... IMmel R;eimlrm,eftl8f1t amt Training Programs. w-City "i\'iI:l !eimh'tl!ol!e eJEjleBlles fer He, haeks aad ew'I'ieul1W iles iRewa>ea hy HeR ~aieMly empieyees 'I1I'ithI!I tke l'ejlfeS6Bmften !Il!it, 'Ie II fI!2l6R11W sf $1,Q9Q lie! ftseaI yaat', fer elasses gi¥eR &y lie_Site!! institIlae!lS ef 1efH'Biag e! llI!iJfeVI!!! epeei&lilll!a tmiaiftg gl9'aps The City ",'ill aise !'aim1:mfSe prefessiesal: aaseeiMiea RIeIl1!!erlII!iJ!s _ eel'!ferel!ee ~ fees-, prefeasle_ lie. _ IlI!fi,eSiaale. Fer plIIl!9SeB sf 1Ais ea9seetien, Wiman dellS l\et i_lie eeslsilf eEjUiplB\lali f:lf teale (alee. fer eelllJ'lltei' llftl'liwiU'<I IIIl.d l1El~vare), if tke empley.e may lEeep Sftaft items at die e!'Id eftke Bemose. ~ Pla'ehase Elf jell !'elatea e~lol!e! se~"'C!'e, llarGwe!e, lHgh Silled ia~et'II.et aeeese,teieealMulnieatieB .iPmeM IIIl.d hell!le effiee e~ may I!e!e~ea 1i!1der tke SeatieB Ell) $1,001) _eft reiRilMBemeat lleB.f!IU. c-eles (i.e. .jll.'iater iM; p!Ijlef,·~, ate.) de !let ~Ify fer I'IlimMsemefit. The Be!! J're&atie-r !'eEjUi!'el'fleftl ",,'ill lie waizle<l fer 091022 ah 821l1l81 9 p!'el!eSeMi'y eJBil1eyees ,,;hen llltilmiltiftg l'eiat_eftieJl:t fef jel! re!jUil!er:! eeftii!iaaQ_. A-Il pi'ElpiIiIIl eligiBle 1111_ tlU!! seeliell _et eitlier ee~llte tEl IlIe eJBilleyee's jEll! pel!ie.tatll!lee ,,1' l'fEIl'Iare IlIe emp!eyee fer e!hlill! City fle~, . EEl I'IIlIIlt be !IJlfIfe'l8a Hi 1lEI.¥!mee. City slfiflleyees wishing tEl eagege Hi eElueaiieli&lpi'El8l'!IiIIIs iIi'leli':illg VI&I'Jeftg ftme BliIY 'be gTimtea pasehetHIea time if Elopllrtlftli\l!l!al epeM!ieas permit. ~~-~-'-~-:;;:;;;;;;'--~~~~~~~~~~~~~~~~;E;:;;;:;;:;:;;;:;;:~ . (eW Employees assigned by the City to IIItend meetings, workllhops, Dr conventions. , . o(their professional or technical associations shall have their dues and reasonable expenses paid by depattmental funds and shall be allowed to attend such workshops, II1Iletings, and conventions on paid City time. (tit Ra~ fer tI!ffitJft Teim!lI,fS_t will ae EletermiRee tEl ea 'IIIuaele meelft_less saiHeieat Eie$1lft'lentatie!l is jlfB'fiEleEi tEl lIlIflI!ei't hew '!Be ea_a Sf slll!lifltlris relatea te iRlpi'El'ling J!wfefm_ iii the emp!eyee's _at pBsitiell.ReimImMement fe~ may be !!UbImtea at aay time, we will ae eatehjlfeeeseeEl ell a ~e!ly aams. . (e) Health club/gym membership reimbursement of these expenses is tsxable to the employee, (fh) City will reimburse fur travel, meals and lodging while away from home attending an· edlUlational conference that the supervisor authorizes as being job related or which will improve an employee's skills. Per City Policy and Procedure 1-02, the Pre-Travel Authorization Form should indicate expenses thet . will be paid.» . Modification 10. The terms under which the City and employees will contribute toward and provide pension beuefits for members of the General Employee unit, currently set forth in Article XV of the MOA are hereby modified and imposed as follows: "Section I . PERS Continuation. The City will continue the present benefits under the Public Employees' Retirement System 2.7% at 55 tbr qoyees hired before January 1, 2010 or the later effectiye date of the 2@60 formula for new hires as described herein. The City shall amend its contract with CalPERS to provide miscelianeous employees hired on or after the effectiye date of the CalPERS c()lIlmct amendmg with the CalPERS retirement Connula two PerCent (2.0%) of final salary at age sixty (6Q). The City will implement this change on Januarv I, 20 1 0 or as soon thereafter as polisib!e, Section 2 • Employee Share. Ilft'eattle~' 1, 1981, tile City agreed te :\!ay!he '7% _pies'ee!s ~ se~9!!' tEl the PllaJie Bmpleyees' Relifemeat System (PERil). SiHelive the flay flllfiea ill.ek!;W,'ij Elf !/~ the _playas share efllle PBRS esatftlmtie!t wUl iReease tEl 8% hat 7%, aIIiil the City vJil! flay 7% aIIiil all emplGyees will J!!IlY 1% Mille 8~' _pleyee share. lilffeeli¥6 the J!!IlY pened ieehlBive sf 1Illld7 !ill eEmployees currently pay two percent 12%1 and the City pays six 0!>1tl22 sh 8261181 10 percent (6%) of the eight PerVDt (8%) employee contribution toward the 2.7 @ 55 pension formula. Effective with the pay period including December 1,2009, employees under the 2.7 at 55 fotmula will pay an additional ooe-m.fB'percent ~ toward 2.7% @ S5 for a total of ~Ilight p!lNent (S%) of the PERS employee-share contribution. The City contribution of Ihe PERS employee share will simultaneously change to (; zero percent (0%). Effective June 30, 2010. the PEBS employee share "ontnDutilmm~IID!Jl!!U!~ llensioiffmip\ila sIla!1:C1i:ange fjffjve ... and three quarters oercept (5.150/0) and the City's contribution shall simul1aneously change to two and one->luarter Pement (2.25%) ofpay. For employecs hired on or • J!IIlllIItY 1. 20 10 or such later date as the 2.0 @ 60 formula is implemented by the City. as provided in section 1 above, employees covered by that fommla shall PAY five percent (5%) of pay toward the seven pereent (7%) employee conIributi!lll and the CitY shaIl pay two percent (2%). Howeye!'. if PERS laws or rules require that the contribution rate of employees· toward the respective !I!mllo.yee contributions under the 2.0 @ 6Q and 2.7 at 55 formulas must be the same, the uniform employee contribution rate Shall be six percent (6%) with the City paYing the l:lllIlaining percent'iII for the AAlllicab1e formula. Section 3 -Conversion for Final Twelve Months Prior to Retirement. Notwithstanding Section 2 above and pursuant to Government Code Section 20615.5, upon ruing !I notice of retil:lllllent, the +%amount of the City-paid PERS employee contribution will be converted to a salary adjustment of equal amount on a one-time irrevocable basis for the fina\ twelve montbll immediately prior to retirement. For this :final twelve-month period the employee shall pay PERS employee contributioll8, Bf:fee!i-\~ .the pay periad iMlamve af 1~e.1Q7. J.MSlHIIit te Gevemme!'lt Geda SaMieft 2961a.S, l:ipall Neelviag III!; elftpleyee's Retiee af Ntifl.lllleflt '!fte ~ peid PEaS empleyee eelltfie!ili:1II!; fiIW 'lIHiBe eaft,<el'teEi 1e a salmy IIE1jI:llltmeBt sf 81!:1Ial. !lIIlelI!:It eft a • time iH_eahle !!asia fop the Me! w...wie meBths lIHieHely . helert ~ 'lI'itll!a 7%. Pel' *'He Me! RveR'S _til pe!'ied '!fte -mayae !!hall !1&f the iWl8l!~ PBRS ii!'B.lIleyee eeB!fib!ili:e!I!i. 'Bffeetive the llllYpefied iMllIsi'.~ ef7IGIIG7, ~ til Gie'Jel'III!la!It Gade gsetieR 2961S.S, upon receiving an employee's notice of retirement the City-paid.PERS mnployee contribution that will be converted to a salm:y adjustment of equal amount on a one-time irrevocable basis for the flllal twelve months immediately before retil:lllllent will be ~ the !I!!lOUIlt of the IPPlicable employee-paid contribution set forth in section 2 of this Article. For this fina\ twelve- rnonthperiod the retiring ~loyee on the 2.7 at 55 formula shall pay the full &%Percentage of the applicable PERS employee contributions (8% for emplQyees on the 2.7% at 55 furmula and 7% for emnloyees on the 2.0% at 60 forrnJlla)." ModiflllRtloB 11. The terms under whiehElectrical System Operalnrs are cornpensated when performing certain relief duties during their relief cycle, currently set forth in Appendix D of the MOA, are hereby modified and imposed as foUows: 091622 sfl826!13! 11 _-.-i "ReHefEmployees This provision only applies to the Electric System Operators. The five Operators . share the relief week evenly as they ro~ through the five week cycle. Relief employee(s) will be 'l!ti!il!eused within the 12-hours shift. schedule only when --relievlbg foube S~erlitijlnnshlft.-'Whennotrel.teyln!!, they-willworkfbut eight-hour shlfts. When a vacation relief week results In a 36-hour or 48·hour week, the ll:elit foll&';1iRg relief v,'ei'k week will be selie_a fof kee -eight hetir _ eM foI:lp Beaf _ Sf S'19 eigkt helU' shifts. deiI~ ell: wlietiler 18 Sf Hi heI:1re were Beeeedis Mag the heI:1re hek Ie the 40 helll' lIi',tefage. }2j helll'S .. verked Hi _eSS eftlltl heare fBE!;l:lHee tEl retum Ie lIIe 40 haUl' aYeMge .... 411 he paid at the IIpprep!'iate e'.mmu fate ~ qperator worldng said week shall be paid at on~ and one·half (1 ~) time their nprmal rate ofooy for hours that exceed tblr!;y two (2) hours." SECTION 2. Seope of Modifications. The only modifications of wages, hours or other conditions of employment withln the scope of representation that are modified by thls Resolution are those expressly set forth In Part A of this Resolution. All other terms and conditions within the scope or representation shall remain unchanged unless hereafter modified In accordance with applicable law. Nothing In thls Resolution shall he construed as depriving the Union of its right each year to meet and confer on matters withln the scope af representation, whether or not such matters are included In this Resolution, prior to adoption of the City budgl!! or as otherwise required by law, . _ SECTION 3, If any provision or any part of a provision ofthls Resolution shall be finally determined to be irivalid, illegal, or otherwise .unenii:n:ceable, such . determination shall not impair or otherwise affect the validity, legality. or enforoeability of the remaining provision or parts of the provision thls Resolution, which sbalJ remain in full force and effect as if the W1enforceable provision or part were deleted. III III III III If I fff 091021 >It &'16m! 12 SECTION 4. The Council findB that this is not a project under the California Environmental Quality Act and. ilierefore, no environmental. impact assessment is necessary, AYES: BARTON, BURT. DREKMEIER, KlSHIMOTO, KLEIN, MORTON, SCHMID . NOES; YEH ABSENT: ESPINOSA ABSTENTIONS: ATIEST: APPROVED: Mayor APPROVED AS TO FORM: . otUinlin Resouroes - 0911Xl.2 sit 8261181 13 ,', . Citrof Palo Alto City Manager's JlepQrt TO: HONORABLE CITY COUNCIL FROM: CITY MAI~AGER ~==~~= DATE: OCTOBER 26, lO0:9 DEPAltt:MENT: HUMAN RESOURCES CMR: 414:09 SUBJECT: Adoption ofResolutionlmpusbJ,g the City's Last, Best and Fimd·Offer to Stl'viee Employees' International UDiou (BElU) Local .521 Pnrsuant to Govi!mJllentCo.de Section 35Q5.4 .RECOMMENDA'l10N . Staffreco!lllllenils Council.approval ofthe·attaclWdresDl:ution imposing the City's la!l1;. best apd final offer to Service Employees' Int\:lmational.Union (SElU) Loea1621 pu:rsuant to GQveI'lll11ent Code Section 3:$05 .. 4. The Council is only permUted to approve ot disapprove this resolution and cann~make 1Illy e~ to tenns that were in the City's last, best and final offer. BA<;KGROPND Govemmlm1: CQdQ section.3505,4 authorlms the City:to implement tenus of its last, best and final offtlr. Section 3505.4 provides: . If after meetii)g andconf~g in good faith, au impasse has been.reac:b.ed between. tbepilblic agency and the recognized employee organization, and impasse pl'oce~s, where applieable, have been .ex!:tauste(l. a public agency that 1$ not required, to proceed to interest arbitration :n:tay il:lJplru;nent ~'t$' last,. b.est, and finalofi'er, butshall not implemenuq,nemorandum of understanding. The unilatllral impiementatio.o.of ap1,lbIicagenoy's .l:ast, best, and final affer shall rot depnve .. JiIeCognized employee{)rg!l!lb!ation oftlre rlght.eaeh yearto moot andconferon,matters within the scope of representation, wlletheror not thoS6}natters are included in the unilateral implementation, prior to the adoption by thepubl.ic ,agency of its lI11)lual budget, or .as~~serequire\l bY law. . I • The City's agreeJ.nentwith,SEIDtooal5Z1 ~ired onJune ~O, 2009. TheCity COIllllJI.lIJced negotiations with SElU on May 4, 2009 regarclfug the terms 3lW conditions of emp10yment for this represeniedunit, and the parties have spent five. months and twenty six meetings negotiating fut.ll succeSfjOt agreement in spite of the itlcreasing financial st:taJ.n 011 the City. CMR: 414:0.9 . Pagelof5 Under State law, the City of Palo Alto is required to bargain in good faith and cannot unilaterally make changes to working tenns and conditions for represented employee groups. Thus, although the agreement with SEIU expired, the parties must maintain the status quo and. continue to observe the terms and conditions of the expired agreement until a new ~mmt is neg~glLthe-.City-.may not implement a memorandum of m ---<tgleenrent,lreetion j565~4 grves-tlltvCity !lie abilit,Y16-iJifihiteraJ:ly lhipiementtefllmllmf change the status quo following good faith negotiations and impasse. The prerequisites to unilateral implementation set forth in section 3505.4 have been met Over the course of negotiations, the City has reduced its proposals by nearly half, yet the parties still remain at odds over significant economic issues, as discussed below. As a result of extensive discussions on those issues and fue parties' inability to reach agreement or even make significant progress, the City gave its last, best and final offer to SEW on October 16, 2009. The City and SEIU ineton October 20, 2009, when SEIU formally rejected the City's last, best and final offer. Following the Union's rejection, the City declared that the parties were at impasse. On October 20 and 9ctober22, 2009, pursuant to section 1208 of the City's Merit System Rules and Regulations, the parties discussed potential ways to resolve the dispute in order to Satisfy the impasse procedures, but did not agree. Beyond such discussions, there are no required impasse resolution procedures. Staffis recommending that the council adopt the attached resolution to implement the terms of the City's last, best and final offer descnbed below. This adoption will not and cannot establish a new agreement, but rafuer, will change <lome of the terms and conditions of etnployment under which the parties are currently operating until a new agreement can be reached. Because thiS resolution itnpleinents the terIUS of the City's last, best, and final offer, the Council cannot make any changes to fuose terms ifit adopts the resolution. The Citywill be required to meet and cqnfer wifu the Union prior to adoption of fue FY 2011 budget. PISCUSSION Since the beginning of these negotiations, the City communicated its need for long-term structural budget change in compensation costs, particularly pension and medical costs. Actuarial evidence of the expected increases in PERS retirement contribUtions and in fue· City's retiree medical liability was presented to SEIU during negotiations. in addition, the City's budget deficits ($10 million fur FY 2010) have been communicated to SEIU and furough numerous public meetings, reports, and budget documents. / , The City's and Union's positions are fundamentaUydifferent. They differ over whether the City faces long-term fmancial problems and over their magnitude. The City believes there are long-term systemic cost issues that a change in the economic cycle and an uptick in CMR:414:09 Page2of6 revenues will not address. It faces major liabilities such as the need to eliminate a significant infrastructure backlog and to meet its retirement and retiree medical obligations. It also faces considerable operational expenses as voter approved (General Obligation Bonds) new facilities are brought on-line. 111 addition, the current recession (started in December 2007) has proven long and severe and the general economist consensus is that jobs and consumer spending, the principal economic drlvers of City revenue, will take many lllore years to ~;;;;;;;;';;;;;;;;'=;;:;;;;.F@~. l!l~~i~Q,M_¥I!!~:~is~a~dGii.oo=-t>h~s~~~~¥····-· --~~.~ never return to pre-recession levels. The Union contends that temporary or interim Ineasures such as furlaugbs and savings measures associated with ll,ew employees can close, what it views, as near-term budget deficits. The Union's perspective is that the City's revenue shortfalls will be of short duration and that the economy will resuscitate soon eliminating the need for deeper cost savings. Each side has been consistent in their perspectives. Notwithstanding those differences in perspective, both the City and SEIU have moved on their original proposals. Starting with a proposal for approximately $4.5 million in ongoing savings, the City's last qest and fn18l offer now results in $2.55 million in savings for FY 2010. In its first proposal, the Union requested an increase in compensation and benefits, but has subsequently proposed a series of savings plans that are of a short-term and longer-term nature, such as implementing furlough days, reducing the tuition and training benefit, creating a new and less expensive step in tile compensation plan, and having new employees contribute more toward ili:e employee portion of the PERS retirement plan for a specified number of years. However, the City believes the Union's longer-term proposals do not result in the magnitude of savings required to solve structural issues. In addition, the data used.to support the Union's savings estimates does not instill confidence in the consistency of those savings. The Union has been clear and persistent in rejecting two key features incorporated in the City's proposals as well .as the final offer: (I) contributions by enlployees to medical premium costs (currently employees contribute zero dollars) and (2) establishing a second tier or less remunerative retirement plan (2% at age 60) for new employees. In addition, the Union opposes increasing current employee retirement contributions (currently limited to two percent with the City paying the remainder). This unwavering position led to the City giving . its last, best and final offer, and, after the Union rejected that offer, declaration of impasse. SummaryrofLast, Best and Final Offer • Bath the City and the Union modified their proposals by amount and configuration over the course of the bargaining sessions. The main provisions of the City's last, bestand final offer were a result of continuous changes and tbe give and take in an effort to reach an agreement. CMR: 414:09 P.go 3 of,6 Overall, the City has lowered the amount of concessions it originally proposed and has sought a balance between reductions to employee paychecks (e.g., higher contributions to PERS) and to other non-paycheck benefits (e.g., fewer floating holidays). Staffbelieves that the last, best and fmal offer achieved a fair balance, and the maj or terms it is reconullending .JgriJJl,plemeptationllre!!S follows: _ ---~~ ----puunC-nIDOI" '1ees-~tirenIell t 5ystettF(P'BRS);Bm;mmre<LCtttItJ Ibation---------------.. _. The PERS retirement employee contribution by employees is raised flum the current 2 percent to 8. percent, an increase of 6 percent to employees (the City is currently paying 6 percent of the required 8 percent contribution). This increase will be effective with the pay period including December I, 2W409. The 6 percent increase is a result of the lleed to close the FY 20 I ° budget deficit over the seven remaining months of the f18cal year. TIns is a direct consequence of the dtlration of negotiations. Effective with the pay period including June 30, 20G910, employees would be responsible for paying 5.75 percent of the 8.0 percent of the employee PERS contribution. The 5.75 percent (which is an addition of3.75% to the current 2% employee contribution) is sufficient to meet the City's savings goal and to maintain the same level of savings over twelve months as ill generated by the Jrigher6 percent contribution over an approximate seven-month period in FY 20 I 0. Tuition and Training Reimbursement The final offer reduced the current benefit of $1 ,000 in tuition and training rcimbursenlent to zero. The Union indicated during negotiations that it was amenable to reducing this benefit although the parties were onable to reach fmal agreement on the amount. Furloughs The last, best and final offer contained no pre-set, unpaid furlough days. This furlough provision may be triggered if an employee applied for and received the tuition and training reimburaemeut prior to the implementation of the tuition and training reimbursement reduction. The furlough would be made sufficient to cover the amoont that has been paid to _ the employee. To date, staff has no knowledge of an SElU employee using the tuition benefit, so it is likely that the furlough provision will not affect any employees. Floating Holidays This provision eliminates two of five floating holidays SHIU employees currently recelve per year. It is believed that this will result in an increase in productivity and savings to the City by a decrease in overtime. A value of $170,000 was ascribed to each floating holiday. Health Insurance The City significantly modified its proposals on employee contributions to medical premiUl1lS over the course of negotiations. Whereas in a prior proposal, the employee share would rise overthne to a larger share of premium costs, the City's last, best and final offer was for ClIijR: 414:09 Page 4 of6 employees to share in the future health care cost increases equally until such time as the employee pays a maximum of 10 percent of the total premium for the applicable plmi The City would paytheremaining 90 percentlevel. This 90/10 split of premiums would continue into the future. The City believes this is a reasonable way to offer some assurance to employees on cost increases while also providing financial relief to the City. j :;;:_==:;;;:,:;, .. ':: .. ~::---~2..~B~em~, e~.Iil.~t;i!jat~-S~~ii4t.~{:~R.~.etiialmjj!'iCll~t-~ll[jla!!lIl~--=-=--=======~=~~ =========== To control future retirement costs, the City's last, best and fmal offer gave a different retirement formula, 2% of final salary at age sixty, for future new employees. Current MiscellaneoUll employees will maintain the 2.7 percent at 55 retirement benefit. The formula change for new employees would have modest financial impact in the early years of implementation but would result in'much lower costs over time. The City believes the terms of its last, best and final offer to SEIU are reasonable given current economic conditions and the long-term and real financial challenges the City faces. , Staff regrets that a negotiated deal could not be reached at this time, but the press of events and the need fer fiscal responsibilityne~essitates implementation of these last, best and final offer terms. RESOURCE IMPACT . Based on the City's last, best and final offer descnbed above, the City's estimated savings during FY 2010 are as follows: Incremental Six (6) Percent Contribution ,to PERS for Remainder of Fiscal Year: Eliminstion of Tuition arid'Training Benefit Elimination of Two (2) floating Holidays Total Savings for FY 2010 , $1,599,500 607,500 340,000 $2,547,000 The "hard" savings in the above is closer to $2.2 million, a marked decrease from the City's' October 6, 2009 proposal, and less thanhalf of what the City sought when negotiations began in May. While the hard savings can be realized this year, the changes to Ii two-tier retirement fonnula al!d contributions to healthcare insurance premiums will have future benefits that will assist 'in addressing the structural deficit the City is facing. POLICY IMPLICATIONS CMR:414:09 Page 5 of6 POllCY IMPLICATIONS This recommendation is consistent with existing City policies . . _""-----,.-< .~. . ... -_. _ ••••• ~ •• ENVIRONMENTAL REVIEW Adoption of this resolution is not considered a project under the California Environmental Quality and does not require an environmental revieW. ATTACHMENTS A. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO lMPOSlNG THE CITY'S LAST, BEST, AND FINAL OFFER TO SEru LOCAL 521 PURSUANT TO GOVERNMENT CODE· SECTION 3505.4 . PREPARED BY: Sandra.T.R.Blanch, Assistant Director, Human Resources and, Joe Saccio, Deputy Director of Adminjstrative Services DEPARTMENT HEAD: _----='0~<,::l<;:n:::::.i· ;:.:::O=:~ ;=:.:-__ • _/ -=._=-__ _ RUSSC~EN . Director of Human Resources CITYMANAGIlRAPPROvAL d~ A. 4"AMES . V . City Manager . CMR:414:09 Page ~ of6 RECOMMENDATION The . City Council is respectfully requested to adopt the attached Resolution Calling a Special Election for November 2, 2010 Submitting to the Electorate for Special Election an Initiative Measure to Amend the Charter of the City of Palo Alto to Specify Minimum Staffing and Service Levels for Fire Department Persqnnel and of Fire Stations and Fire Station Locations and Require a Referendum Vote for any Proposal to Reduce Such Levels. This. resolution sets the election date and deadlines for ballot arguments and requests the County's services in conducting the election. To obtain the County's services, the City must adopt this resolution no later than the August 2, 2010 council meeting. RESOURCE IMPACT . The costs for this measure have increased from illy last estimate due to the fact that the Registrar of Voters has forwarded an invoice in the amount of $22,780 for the verification of the petition signatures. Therefore, the revised cost for this measure would be approximately $212,780, which would be $163,780 for the Registrar of Voters, $35,000 for legal fees, $11,000 for publication requirem~nts, $3,000 for staff time. Attachments: Certificate of Sufficiency Resolution CERTIFICATE OF SUFFICIENCY OF THE CHARTER AMENDMENT PETITION REGARDING FIRE AND EMERGENCY MEDICAL SERVICES MINIMUM PROTECTION I, Donna J. Grider, City Clerk, City of Palo Alto, do hereby certify: 1) that a charter amendment petition regarding fire and emergency medical services minimum protection was received in this office on June 16, 2010; 2) that said petition containing 7,261 Signatures was delivered to the Registrar of Voters of Santa Clara County for verification of signatures; 3) that the Registrar of Voters of Santa Clara County has issued his certificate dated June 30,201 O,stating that after examining 7,261 signatures, 6,009 signatures were placed on the petition by registered voters of the City of Palo Alto. 4) that in accordance with Election Code Section 9255, the proposed petition is Signed by at least fifteen (15) percent of the registered voters of the city according to the county official's last official report of registration to the Secretary of State (36,307 x 15% = 5,446), said petition is found to be sufficient in that it contains 6,009 qualified signatures. Witness my hand and official seal this 12th day of July 2010 A!kAU-(} <~~) DONNA J. GRI~ MMC City Clerk City of Palo Alto REVISED * * * NOT YET APPROVED * * * Resolution No. Resolution of the Council of the City of Palo Alto Calling a Special Election for November 2, 2010 Submitting to the Electorate for Special Election an.lnitiative Measure to Amend the Charter of the City of Palo Alto to Specify Minimum Staffing and Service Levels for Fire Department Personnel and Require a Referendum Vote for any Proposal to Reduce Such Levels WHEREAS, an initiative petition to amend the Charter of the City of Palo Alto Municipal Code to specify minimuril service and staffing levels for Palo Alto Fire Department Personnel and require a referendum vote for any proposal to reduce Fire Department service or staffing levels, or close or relocate a fire station has been submitted to the City in accordance with the requirements of Article IX of the Charter of the City of Palo Alto; and WHEREAS, elections will be held·on November 2,2010, in certain school districts and certain special districts in Santa Clara County; and WHEREAS, pursuant to Education Code section 5342 and Part 3 of Division 10 of the Elections Code commencing at section 10400, such elections may be partially or completely consolidated. NOW, THEREFORE, the City Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Special Election. Pursuant to Elections Code sections 1405 and 9255 there is called and ordered to be held in the City of Palo Alto, California, on Tuesday, November 2, 2010 a special municipal election. Pursuant to Article IX of the Charter of the City of Palo Alto, this Council orders the following question to be submitted to the voters at the Election: CITY OF PALO ALTO CHARTER INITIATNE MEASURE __ _ Shall the Charter be amended to require the City to continuously maintain in all budgetary years at least the number of Fire Department Personnel authorized in the 2009-10 Annual Budget, and to prohibit the City from implementing any proposal to reduce fire staffing levels or close or relocate a fire station unless the City Council holds two public hearings, submits the measure to voters, and a majonty of voters approve the proposal? For the Amendment Against the Amendment SECTION 2. Adoption of Measure. The measure to be submitted to voters is attached to this Resolution as Exhibit "A" and incorporated herein by this reference. If a 100727 sh 8261363 1 * * * NOT YET APPROVED * * * majority of qualified electors voting on such measure shall vote in favor of City of Palo Alto Charter fuitiative Measure "_", it shall be deemed ratified and shall read as provided in Exhibit "A" attached hereto. SECTION 3. Notice of Election. Notice of the time and place of holding the election is hereby given, and the City Clerk is authorized, instructed and directed to give further or additional !'.otice of the election in time, form,·and manner as required by law. SECTION 4. Impartial Analysis. Pursuant to California Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk on or before August 17,2010. SECTION 5. Ballot Arguments. Pursuant to Elections Code section 9286 et seq., August 10, 2010 at 5:30 p.m. shall be the deadline for submission of arguments in favor of, and arguments against, any local measures on the ballot. If more than one argument for and/or against is received, the priorities established by Elections Code section 9287 shall control. SECTION 6. Rebuttal Arguments. The provisions of Elections Code section 9285 shall control the submission of any rebuttal arguments. The deadline for filing rebuttal arguments shall be August 17,2010. SECTION 7. Consolidation Request. The Council of the City of Palo Alto requests the GoveIning Body of any such other political subdivision, or any officers otherwise authorized by law, to partially or completely consolidate such elections and to further provide that the canvass be made by any body or official authorized by law to canvass the returns of the election, except that in accordance with Article III, section 4, of the Palo Alto Charter, the City Council must meet and declare the results of said elections; and that this City Council consents to such consolidation. SECTION 8. Request for County Services. Pursuant to section 10002 of the California Elections Code, the Council of the City of Palo Alto hereby requests the Board of Supervisors of Santa Clara County to permit the Registrar of Voters to render services to the City of Palo Alto relating to the conduct of Palo Alto's General Municipal and Special Elections which are called to be held on Tuesday, November 2,2010. The services shall be of the type normally performed by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections including, but not limited to, checking registrations, mailing ballots, hiring election officers and arranging for polling places, receiving absent voter ballot applications, mailing and receiving absent voter ballots and opening and counting same, providing and distributing election supplies, and furnishing voting machines. Subject to approval of the Board of Supervisors of Santa Clara County of the foregoing request, the City Clerk is hereby authorized to engage the services of the Registrar of Voters of the County of Santa Clara to aid in the conduct of said elections including canvassing the returns of said election. Further, the Director of Administrative Services is authorized and 100727 sh 8261363 2 * * * NOT YET APPROVED * * * directed to pay the cost of said services provided that no payment shall be made for services which the Registrar of Voters is otherwise required by law to perform. SECTION 9. Transmittal of Resolution. The City Clerk is directed to submit a certified copy of this resolution to the Board of Supervisors of the County of Santa Clara ~d to the Registrar of Voters. SECTION 10. Exemption from CEQA. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Administrative Services 100727 sh 8261363 3 Cikr of Palo Alto ----.~---:':' J .. -.----.-.. -----.--------------------- Office of the City Manager TO: HONORABLE CITY COUNCIL FROM: DATE: Subject: James Keene July 12, 2010 City Clerk's Report Certifying Sufficiency of Charter Amendment. Petitions Regarding Adding Article IX Fire and Emergency Medical Services Minimum Protection and Adoption of Resolution Calling a Special Election for November 2, 2010 Submitting to the Electorate for Special Election an Initiative Measure to Amend the Charter of the City of Palo Alto to Specify Minimum Staffing and Service Levels for Fire Department Personnel and of Fire Stations and Fire Station Locations and Require a Referendum Vote for any Proposal to Reduce Such Levels BACKGROUND On your agenda, you have an Action Item from the City Clerk that transmits the results of the sufficiency count of signatures on the petitions submitted to amend the City Charter to add minimum staffing requirements for Fire and Emergency Services in the City of Palo Alto. It is her responsibility to promptly transmit these results to the City Council. In addition, in this Action Item she has recommended scheduling a Special Election for November 2, 2010, as has been her practice. This is the earliest date possible for the election on the charter amendment. The Council is not required to take action on setting this petition for a special election at your meeting on July 12, 2010. I have discussed this with the City Clerk and she concurs with this fact. RECOMMENDATION If Council schedules this matter for a special election on November 2, 2010, you must take action by the August 2, 2010 Council meeting. There are several factors you should consider before making your decision. . At least one Council Member (Klein) will be absent from the July 12, 2010 meeting. There are additional issues involving the potential charter Printed with soy·based inks on 100% recycled paper processed without chlorine Po. Box 10250 Palo Alto, CA 94303 650.329.2563 650.325.5025 fax 6 amendment that will be the subject of a closed session to be scheduled by the City Attorney for July 19. For these reasons I recommend Council defer its action on this item setting the election date until your August 2, 2010 meeting. Respectfully submitted, '?:: ~e~ '--r-tt;:anagtJ TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: CITY MANAGER DATE: AUGUST 2, 2010 CMR: 341:10 REPORT TYPE: ACTION SUBJECT: Adoption of a Resolution of the Council of the City of Palo Alto Calling a Special Election for November 2, 2010 Submitting to the Electorate for Special Election a Measure to Eliminate Binding Interest Arbitration Requirements for Disputes with Public Safety Employees by Repealing Article V of the City Charter Recommendation Consider adoption of the attached Resolution of the City Council of the City of Palo Alto Calling a Special Election for November 2, 2010 Submitting to the Electorate for Special Election a Measure to Eliminate Binding Interest Arbitration Requirements for Disputes with Public Safety Employees by Repealing Article V of the City Charter. Background At the July 19, 2010 City Council meeting, the City Attorney was directed to bring back appropriate ballot language to call a special election in November 2010 to eliminate binding interest arbitration from the City's public safety (police and fire) bargaining (union) agreements should the Council ultimately decide to pursue the measure after their policy deliberations on the subject. Today marks the final Council action date to place this matter on the November 2010 ballot. The draft Resolution calling for a special election is attached as Attachment "A." Information that has been previously provided to Council is attached to this item as Attachment "B." Additional information related to the legal and other costs associated with previous City arbitration cases through the years is still being researched at the time of the writing of this report and will provided to Council separately when completed by the Human Resources Department. CMR:340:10 Page 1 of2 Discussion The decision to call a special election for the purpose of considering the removal of binding arbitration from the City Charter is clearly a policy decision by the Council not to be taken lightly. Previous information submitted to the City Council indicates that most cities in Santa Clara County do not currently include binding arbitration in their union (public safety or otherwise) agreements -see attachment B. However, each city is unique and should consider such policy questions independently. Resource Impact Recommended action could result in the need for a separate budget amendment item to come back to Council for approval to pay for the costs associated with adding this measure to the November 2010 ballot as funds were not previously budgeted for such a ballot measure. The Santa Clara County Registrar of Voters estimated the cost to be approximately $100,000. Attachment A: Draft Resolution Attachment B: Previous Staff Report and Information related to the topic PREPARED BY: CITY MANAGER APPROVAL: CMR:340:10 ~w~ PAMELA W. ANTIL Assistant City Manager ~~/.fF-~ . . MESKEENE City Manager Page 2 of2 /17TAll.H(Yl Ej\J T 1/ A!, , * * * NOT YET APPROVED * * * Resolution No. Resolution of the Council of the City of Palo Alto Calling a Special Election for November 2, 2010 Submitting to the Electorate for Special Election a Measure to Eliminate Binding Interest Arbitration Requirements for Disputes with Public Safety Employees by Repealing Article V of the City Charter WHEREAS, Article IX , section 1 of the Charter of the City of Palo Alto authorizes the City Council to propose and submit Charter amendments to the voters of the City for approval at any established municipal election date; and WHEREAS, Article V of the Charter requi~es compulsory arbitration, commonly referred to as binding interest arbitration, as the sole method for resolving disputes with Fire and Police Department employees over matters involving wages, hours and working conditions; and WHEREAS, the Santa Clara County Civil Grand Jury issued a report in May 2010 concluding that cities must rein in unsustainable employee costs, and finding that binding arbitration limits the ability of city leaders to craft solutions that work for the City'S budget, resulting in wage and benefit decisions that have been greater than the growth in basic revenue sources; and WHEREAS, in order to have more flexibility to craft solutions for managing employee costs, the City Council wishes to propose a Charter Amendment to repeal the binding arbitration requirements for public safety employee groups contained in Article V of the Charter; and WHEREAS, elections will be held on November 2, 2010, in certain school districts and certain special districts in Santa Clara County; and WHEREAS, pursuant to Education Code section 5342 and Part 3 of Division 10 of the Elections Code commencing at section 10400, such elections may be partially or completely consolidated. NOW, THEREFORE, the City Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Special Election. Pursuant to Elections Code sections 1405 and 9255 there is called and ordered to be held in the City of Palo Alto, California, on Tuesday, November 2, 2010 a special municipal election. Pursuant to Article IX of the Charter of the City of Palo Alto, this Council orders the following question to be submitted to the voters at the Election: / / / / 100728 sh 8261378 1 * * * NOT YET APPROVED * * * CITY OF PALO ALTO MEASURE ----- To allow the City to use the dispute resolution methods set forth in State law to resolve disputes over all matters related to employee wages, hours and working conditions, shall Article V of the Palo Alto City Charter be repealed to remove the requirement for compulsory arbitration of public safety employee disputes ("binding interest arbitration"), which allows an arbitration board to make a final and binding decision on such matters without City Council approval? F or the Amendment Against the Amendment SECTION 2. Adoption of Measure. If a majority of qualified electors voting on such measure shall vote in favor of City of Palo Alto Measure "_", it shall be deemed ratified and the following provisions shown in strikethrough shall be repealed and deleted from the City Charter: Artiele V. Comp\dsory Arbitratiofl for Fire and PoUee DepartmeRt Employee Dispmes 8ee. 1. Deelaratiofl ofpoliey. It is hereby deelared to be tae poliey of the eit)' of Palo Alto that strikes by flfefighters and poliee offieers are flOt in the pl:lblie interest and shmdd be prohibited, and taat a metaod sholild be adopted fer peaeefully and eEtliitably resolYing displites that might otaerwise lead to Slieft strikes. 8ee. 2. Prohibitiofl aga-iRst strikes. If any fIrefighter or peaee offieer employed by the eity of Palo Ako wilfully erlgages in a strike against the eity, said employee shall be dismissed from his or her employmeRt and may flOt be reinstated or rettH'H:ed to eit)' employmeHt exeept as a flew employee. }to offieer, board, eOl:ffi:eil or eommissiofl shall have the power to graRt amnesty to aR)' employee eharged with eflgaging ifl a strike against tae eity. 8ee. 3. Obligation to negotiate in good faith. The eity, thrOligfl its dlily amhorized represeHtatr.'es, shall negotiate in good faith with the reeogRized fife and poliee departmeRt employee organizatiofls on all matters relating to the 'llages, hOliTs, and other terms and eonditiofls of eity employmeRt, rnelliding tae establisllm:eRt of proeedliFes for the resollition of grieYanees sl:lbmitted b~' eitaer employee organization oyer the iRterpretation or applieation of any negotiated agreemeRt inelliding a provision for bindiflg arbitration of those grie't'anees. Thlless and liRtil agreemeRt is reaehed thrOligfl flegotiations between the eity and the reeogflized employee organization for tae fire or poUee department or a determination is made throligh the arbitration proeedliTe herernafter proyided, no e~dsting benefit or eonditiofl of emplo~'meRt for tae members of the fire department or poliee aepartmeRt eargaining liflit shall be eliminate a or ehanged. 8ee. 4. Impasse resollition proeedliFes. All tHsplites or eoRtroYersies pertaiRing to wages, hOliTs, or terms ana eOflditions of emfllo~'ment whieh remain liflfesolYed after gooa faith negotiatioflS eetween the eity and either the fife or poliee departmeRt employee orgaflization shall be sl:lbmittea to a three member board of arbitrators liflon the deelaration of an impasse by the eity or by the reeogRizlild employee organizatiofl iRyolyed in the dispme. RepreseRtatiYes desigRatea by tae eity ana represeRtatiYes of the reeogRizea employee organization inyolYed in the dispme, eoRtroyersy or grie'lanee shaH eaeh seleet one arbitrator to the board of arbitrators within three days after either party has notified the other, iR writiRg, taat it desires to proeeed to arbitration. The third member of the arbitration board shall be seleeted b~' agreemeRt between the t'lfO arbitrators seleeted b~' the eity ana the employee orgaffization, and 100728 sh 8261378 2 * * * NOT YET APPROVED * * * shall serve as the Betltral arllitrater and ehainBaB ef the board. In the e¥eBt that the arbitraters selested by the sity aBd the el'Rflleyee oFgaBizatioB sannot agree llfleB the seleetieB of the third arllitrator withm teB days from the date that either party has Botified the other that it has deslared aB impasse, theB either party may reEtHeS! the State of California COBsiliatieB Servise to fJrevide a list of se¥eB persoBs 'llho are EtHalified aBd experieH:sed as labor arbitrators. If the arbitrators selested by the sity aBd the el'Rflleyee oFgaBizatioB saBBot agree withill three days after reseipt of sHsh list eB OBe of se¥eB to ast as the third arllitrator, they shall alternately strike Bames from the list ofnommees tmtil OBly OBe name remams aBd that person shall thea beseme the third arbitrator aBd shainBan ofthe arbitratieB board. An)' arbitratioB sOfl"leBed fJl:lFSl:lant to this artisle shall be sonoosted m sonformaBee with, SHbjeet to, aBd governed by Title 9 of Part 3 ofthe California Code efCP/il Prosedl:lFe. ,Act the eoneffisiofl of the arbitratioB hearmgs, the arbitratioB beard shall direet eaeh ef the parties to stlbmit, withm SHeh time limit as the board may establish, a last offer ef settlemeBt OB eash of the issHes m dispme. The arbitratiOB board shall deeide eaeh isstle by majerity '/ete by seleetiBg whieheyer last offer of settlemeBt OB that iSSHe it fmds most Bearly seBforms with those fasters traditionally takeB iBtO eeBsideratioB ill the determiBatieB of wages, hel:lFs, and ether terms aBd sonditieBs ef pHblis and fJri'/ate el'Rflleym:eBt, iaelHding, 13m Bet limited to, ehanges m the a¥erage eonSHmer priee iadex for geods and serviees, the wages, hOl:lFs, aBd ether terms aBd eOBditiens ef empleymeBt of other el'Rflloyees fJerformmg similar serviees, aBd the fmaBeial eOBdition of the eit)' aBd its abi:lit)' te meet the eost of the award. After reaehmg a deeisioB, the arbitration board shall mail or otherwise deli¥er a trHe eOfJY of its desisien to the fJarties. The deeisioB of the arllitration board shall not be fJHbliely diselesed aBd shall net be bindiBg l:lH:til teB days after it is delivered te the fJarties. Dl:lFiag that ten day fJeriod the parties may meet fJrpt'ately, attemflt to resewe their differeBees, aBd by ml:ltl:lal agreemeBt ameBd or medif)' aB)' ef the desisions ef the arbitratieB beard. At the eenelHsien ef the ten day fJeried, whish may be extended by mHtaal agreemeBt betweeB the parties, the deeision ef the arbitratieB beard together with aay amenC:imeH:ts or modifieatioBs agreed to by the parties shall be fJHbliely disslosed aBd shall be bindiBg llflon the parties. The sity aBd the resegBized 61'Rflloyee orgaBizationshall take whate'/er aetion is neeessary te earry om aBd effestl:late the award. The expense of aflj' arllitratioB eonyened fJl:lFSHaBt to this artisle, ineffiding the fee for the serviees of the shairmaB of the arbitratien board, shall be borne eEtHally by the fJarties. All other e),peBSes whieh the parties may iBel:lF mdi¥idHally are to be borne by the fJarty iaeHrrillg sHeh expeBses. (Added by amenC:imeBt filed with the sity elerk, JHly 17, 1978) . SECTION 3. Notice of Election. Notice of the time and place of holding the election is hereby given, and the City Clerk is authorized, instructed and directed to give further or additional notice of the election in time, form, and manner as required by law. SECTION 4. Impartial Analysis. Pursuant to California Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk on or before August 17,2010. SECTION 5. Ballot Arguments. Pursuant to Elections Code section 9286 et seq., August 10,2010 at 5:30 p.m. shall be the deadline for submission of arguments in favor of, and arguments against, any local measures on the ballot. If more than one argument for and/or against is received, the priorities established by Elections Code section 9287 shall control. 100728 sh 8261378 3 * * * NOT YET APPROVED * * * SECTION 6. Rebuttal Arguments. The provisions of Elections Code section 9285 shall control the submission of any rebuttal arguments. The deadline for filing rebuttal arguments shall be August 17,2010. SECTION 7. Consolidation Request. The Council ofthe City of Palo Alto requests the Governing Body of any such other political subdivision, or any officers otherwise authorized by law, to partially or completely consolidate such elections and to further provide that the canvass be made by any body or official authorized by law to canvass the returns of the election, except that in accordance with Article III, section 4, of the Palo Alto Charter, the City Council must meet and declare the results of said elections; and that this City Council consents to such consolidation. SECTION 8. Request for County Services. Pursuant to section 10002 of the California Elections Code, the Council of the City of Palo Alto hereby requests the Board of Supervisors of Santa Clara County to permit the Registrar of Voters to render services to the City of Palo Alto relating to the conduct of Palo Alto's General Municipal and Special Elections which are called to be held on Tuesday, November 2,2010. The services shall be of the type normally performed by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections including, but not limited to, checking registrations, mailing ballots, hiring election officers and arranging for polling places, receiving absent voter ballot applications, mailing and receiving absent voter ballots and opening and counting same, providing and distributing election supplies, and furnishing voting machines. Subject to approval of the Board of Supervisors of Santa Clara County of the foregoing request, the City Clerk is hereby authorized to engage the services of the Registrar of Voters of the County of Santa Clara to aid in the conduct of said elections including canvassing the returns of said election. Further, the Director of Administrative Services is authorized and directed to pay the cost of said services provided that no payment shall be made for services which the Registrar of Voters is otherwise required by law to perform. SECTION 9. Transmittal of Resolution. The City Clerk is directed to submit a certified copy of this resolution to the Board of Supervisors of the County of Santa Clara and to the Registrar of Voters. II II II II II II 100728 sh 8261378 4 * * * NOT YET APPROVED * * * SECTION 10. Exemption from CEOA. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Administrative Services 100728 sh 8261378 5 ( ) ) ) ATTAC;WVt£}J, J( 5 If City of Palo Alto 4 City Manager's Report TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE: July 26, 2010 CMR:332:10 REPORT TYPE: I ACTION SUBJECT: Direction Regarding Content of Charter Amendment to Repeal Binding Arbitration for Public Safety RECOMMENDATION This meeting is to continue discussion and provide direction regarding the content of the charter amendment to repeal binding arbitration for Public Safety. On July 19, 2010, the Council directed staff to return with a resolution placing repeal of the City's binding arbitration provisions on the November 2010 ballot. BACKGROUND Council requested at the regular City Council meeting on July 19,2010 that this item be brought back for further discussion. Staff has attached some information about this issue including some news articles on the subject. Also, attached is a communication from the City Attorney and a summary table outlining the status of other local jurisdictions. POLICY IMPLICATIONS This recommendation is consistent with existing City policies. ATTACHMENT A. Table of Binding Arbitration Information from Other Agencies B. Communication from City Attorney C. Information Regarding Other Agency Binding Arbitration ~ n (' FOR DEPARTMENT HEAD: ~L--...L-----~-~ Russell Carlsen Dirnr of.Human Resoui\es I _ ...... CITYMANAGERAPPROVAi~W~ C;( James Keene \ /' City Manager CMR:332:10 Page 10f 1 Charter City C , C C C Note: ATTACHMENT "A" Status of Binding Interest Arbitration in Incorporated Cities in Santa Clara County 7/21110 *8 agencies contract with SantaClara County for fire service. Santa Clara County does not have binding interest arbitration. *General Law cities do not have binding interest arbitration; legislation to impose such process has been found unconstitutional 2 times. City Police Fire Binding Comments Status of Minimum Staffmg Name Interest Standards Arbitration? Campbell X No SC County Fire Cupertino No SC County Fire Gilroy X X Yes 1988-In Charter for Police Reduced Fire minimum and Fire staffing from 4 per truck to 3; Agreement wlFire July 2010: added I FTE * 2%@55 retirement * Employees pay 9% PERS No shift staffing minimum *Neither side pursue charter amendments (inel removal of binding arb that Council was considering) *Eliminate scheduled wage increases (4.5%) Los Altos X No SC County Fire Los Altos No SC County Fire Hills SC County Sheriff Los Gatos X No SC County Fire Milpitas X X No Agreement May 2010: 3 per engine * Defer 3% wage increase for 15 minimum staffmg per shift I year * City may carry up to 12 In FY 2011 Union agrees to allow vacancies in Suppression and up to 12 vacancies (in both Prevention Suppression and Prevention) for *consistent with concessions budget savings. of 7% for all bargaining units Monte No SC County Fire Sereno Los Gatos-Monte Sereno PD Morgan X No SC County Fire Hill Mountain' X X No 21 minimum staffing per shift View (includes Battalion Chief) 3 per engine Palo Alto X X Yes 1978 -In Charter for Police 31 minimum staffing per shift and Fire (incl Station 8) 3 per engine San Jose X X Yes 1980 -In Charter for Police 4 per engine, no shift minimum and Fire staffing. Fire Chief has discretion not to meet minimums for partial day absences. OVER C Santa X X No 2006 Measure B failed -No written Min Staffing Clara would have added binding standard. Practice is 3 per arbitration for Police and engine. Target is 39 per shih, Fire but must have at least 31 when keeping all 10 stations open. Currently running with 34 per shift Saratoga No SC County Fire SC County Sheriff C Sunnyvale X X No 1998 Measure Tfailed-No written Min Staffing would have added binding standard. Practice of 28 per arbitration to City Charter shift. Typically 2 per engine for Public Safety and police also respond to make 4 on scene. (Police and fire are cross trained. Public Safety Dept rather than separate Police and Fire Depts) " ) 7/</10 Cities and one County with provision for Binding Interest Arbitration including recent updates Vallejo: Oakland: Hayward: Palo Alto: San Jose: Alameda: Redwood City: Gilroy: San Francisco: Petaluma: San Leandro: Stockton: Santa Rosa: Napa: Santa Cruz: Sacramento: Sacramento County: Anaheim: Modesto: Salinas: Watsonville: San Luis Obispo: Monterey: Oroville: NOTE: Berkeley 1970 for all employees. Repealed 2010. 1973 for police and firefighters. 1975 for firefighters. 1978 for police and firefighters. 1980 for police and firefighters. 1980 for firefighters. 1987 for fi refig hters. 1988 for police and firefighters. Recently considered bid to remove binding arbitration from Charter; however, reached agreement in June 2010 with firefighters to not pursue ballot change; agreement reduces retirement formula for new hires to 2 %@55 formula and firefighters will begin paying the 9% retirement contribution; eliminates three pending wage increases and reduce staffing from 4 to 3 per engine while increasing staffing from 8 to 9 1990 for police and firefighters, later other employees. 1990 for firefighters. 1992 for police and firefighters. 1992 for firefighters. Considering ballot measure-Council asked staff to draft ballot measure for further discussion at next Council meeting on 7/27 1996 for police and firefighters. 1996 for police and firefighters. 1996 for firefighters. 1997 for police, 1998 for firefighters. 1998 for deputy sheriffs. 1998 for firefighters. 1998 for police and firefighters. 1998 for firefig hters. 1998 for firefighters. 2000 for police and firefighters. 2002 for police and firefighters. 2004 for firefighters. 1993-police and firefighters placed binding arbitration on ballot as a charter amendment-Berkeley citizens voted against it REPORT TYPE: INFORMATIONAL REPORT THE HONORABLE CITY COUNCIL Palo Alto, California Re: Informational Report on Public Safety Strikes Dear Members of the Council: FROM CITY ATIORNEY Council Date: July 19, 2010 July 14,2010 We recently received questions regarding the rights of public safety employees to strike in the absence of binding interest arbitration provisions. The Labor Code expressly prohibits strikes by firefighters. Although there is no specific legislation addressing strikes by police officers, a 1989 court decision held that strikes by police officers are per se illegal. 1. The Labor Code Prohibits Firefighter Strikes The Meyers Milias Brown Act, which governs employer-employee relations in the public sector in California, does not directly address the right to strike. However, California Labor Code section 1962, expressly states that firefighters "shall not have the right to strike, or to recognize a picket line of a labor organization while in the course of the performance of their official duties." Although Labor Code section 1962 passed in 1959, in 1975 San Francisco firefighters called an illegal strike in which other employee groups, including police officers, joined. See San Francisco Fire Fighters, Local 798, Int'l. Ass 'n. of Fire Fighters AFL-CIO v. Bd. of Supervisors of the City and County of San Francisco (1977) 72 Cal.App.3d 820. That illegal strike subsequently prompted San Francisco to propose several charter amendments related to public safety employees. See id. Palo Alto passed its binding arbitration provision shortly thereafter, in 1978. It is possible that the issues San Francisco issue may have been a consideration in passing binding arbitration in Palo Alto. Section 1 of Article V of the Policy Declaration in Palo Alto's Charter provides: 100714 sh 0111483 THE HONORABLE CITY COUNCIL July 14, 2010 Page 2 Re: Infonnational Report on Public Safety Strikes It is hereby declared to be the policy of the City of Palo Alto that strikes by firefighters and police officers are not in the public interest and should be prohibited, and that a method should be· adopted for peacefully and equitably resolving disputes that might otherwise lead to such strikes. 2. Supreme Court Decision Finding Unlawful Any Strike Endangering Public Health and Safety Labor Code section 1962 was the only clear law in effect regarding public safety strikes in California until 1985, when the California Supreme Court applied the prohibition on the right to strike to all public safety employees in County Sanitation District No.2 v. Los Angeles County Employees' Association, 38 Ca1.3d 564 (1985). The sanitation district filed for injunctive relief and damages when its sanitation workers went on strike for eleven days, arguing that the court should adopt a blanket rule prohibiting all public employee strikes. Although the court rejected the idea of a blanket prohibition for all public employees, it recognized that employees providing certain "essential public services" must be prohibited from striking where a strike would create "a substantial and imminent threat to the health or safety of the public." Jd. at 580, 586. Thus, the court found the sanitation workers' strike was legal only because it "did not involve public employees, such as firefighters or law enforcement personnel, whose absence from their duties would clearly endanger the public health and safety." Jd. at 586-87. This decision therefore clarified that both firefighters and police officers are legally prohibited from striking because such a strike would necessarily threaten the health and safety ofthe pUblic. 3. PoliceStrikes Held Per Se Illegal The Court's decision in County Sanitation prohibiting strikes by public safety employees has been upheld in numerous cases. For example, in City of Santa Ana v. Santa Ana Police Benevolent Association, 207 Cal.App.3d 1568 (1989), police officers challenged the County Sanitation decision, arguing. that it should be read to require a case-by-case analysis of whether strike-related activities should be prohibited. Instead, the court concluded that police strikes are per se illegal, noting that "repeated references [in County Sanitation] to strikes by police officers as ones which would still be prohibited lead us to conclude that police work stoppages are still per se illegal" because "application of such a test to police functions would be an impossible task for the trier of fact." Jd. at 1572. The court also acknowledged this rule in a recent decision, County of Sonoma v. Superior Court, where it noted that a law enforcement employee organization's argument "ignores the fact that those employees lack the right to strike." 173 Cal.App.4th 322, 339 (2009). 100714 sh 01 J 1483 THE HONORABLE CITY COUNCIL July 14, 2010 'j Page 3 y ) ) Re: Infonnational Report on Public Safety Strikes 4. Conclusion Since the City's charter provision (Article V) on binding arbitration for public safety was passed in 1978 the courts have settled the law on strikes by public safety employees in favor of public agencies to expressly prohibit firefighters and police officers from striking. As a result, protecting the City from work actions by public safety employees is no longer one of the clear rationales for binding interest arbitration. GMB:sh cc: James Keene, City Manager Pamela Antil, Assistant City Manager Dennis Burns, Interim Fire Chief Donna 1. Grider, City Clerk 100714 sh 0111483 Respectfully submitted, ~_~J./~~_ Gary M. Baum City Attorney Vallejo's experience with bankruptcy, arbitration refonn may spur action in San Jose -Sa... Page 1 of 4 m~eJtertur!\ News A TT ACHMENT "C" MercuryNews,com Vallejo's experience with bankruptcy, arbitration reform may spur action in San Jose By John Woolfolk jwoolfolk@mercurynews.com Posted: 07/03/2010 10:13:45 PM PDT Updated: 07/04/2010 04:54:56 AM PDT Forty years ago, after a strike by police and firefighters, Vallejo became the first California city to let arbitrators -private judges for hire -settle pay and benefit disputes with its unionized work force. In June, voters made the bayside city of 120,000 the state's first to repeal that provision as it struggles to emerge from bankruptcy driven by runaway employee costs. That vote -and the experience in Vallejo, once known for its bustling naval shipyard -has been closely watched in San Jose and other cities where costs for police, firefighters and other unionized employees are outpacing revenues and devouring funds for roads, libraries and other public services. Vallejo's successful repeal has emboldened San Jose city, business and neighborhood leaders to consider a similar ballot measure. And if they succeed, San Jose's labor leaders will be bracing for a similar fight. "Something has got to change," said Jerry Mungai, president of San Jose's Almaden Valley Community Association, whose board this month will consider Advertisement Help people in need. Donate your car, boat or RV Free Towing • Tax Deductible asking the City Council for a November ballot measure repealing the arbitration rights city police and firefighters won in 1980. "It was sold on the idea that we'd have labor peace, and what it's done is given us something more than maybe we bargained for." Public safety unions that kept a wary eye on Vallejo's measure are girding for more battles. "It affects police officers around the state," said George Beattie, president of the San Jose Police Officers' Association. "Repealing this would be bad for the citizens, bad for the police officers and bad for the city." Spending by unions The San Jose officers association contributed $5,000 toward the campaign against Vallejo's arbitration repeal initiative, Measure A, which narrowly passed with about 51 percent of the vote June 8 despite heavy opposition from police and firefighter groups around the state. The Coalition for a Safer California, sponsored by public safety organizations, spent more than $40,000 fighting the measure. The measure's backers -mostly city officials and citizen activists -said they were outspent by a ratio of about 10 to 1. After Vallejo voters approved arbitration in 1970, city officials made two failed attempts in that decade to get it repealed, said San Francisco labor lawyer Alan C. Davis, who represents city workers. But measure backers said Vallejo's 2008 bankruptcy filing, which made it the largest California city to declare insolvency, and public scrutiny of city fU' "111.,. w"". to. .......... L Dlllloll·Frl!"e flail "t • .. -cn '-"'-SC 1-877-225-9384 "hif ,h·Blilld http://www.mercurynews.comlbay-area-news/ ci _1543812 7?nclick _ check= 1 711212010 Vallejo's experience with bankruptcy, arbitration refonn may spur action in San Jose -Sa... Page 2 of 4 ll}ej1trtUr!\ News MercuryNews.com employee pay and benefits made repeal an easier sell. City records showed that a dozen police and fire employees were paid more than $200,000 last year, ranking from chief down to captain and engineer. Nearly half the city's employees are paid six~figure salaries. "This just needed to be done," said Carlyle P. Johnson, 73, a photographer who voted for the repeal measure. "The unions are too powerful." The dispute resolution process officially called "binding interest arbitration" has seldom aroused such interest beyond bureaucrats, lawyers and labor leaders. Unlike "rights" arbitration that settles contract interpretation fights, interest arbitration decides disagreements over compensation. The way it typically works with govemment unions is when contract talks reach an impasse, the union and employer choose the arbitrator, often a retired judge, from a dispute-resolution firm. The arbitrator considers the opponents' positions on the disputed points and picks the winner for each. There's no attempt at middle-ground compromises: If the union wanted a 4 percent raise, and the city offered 2 percent, the decision is either one or the other. Once made, it's final. Does arbitration work? Though arbitration is often sought as a less costly altemative to the courts, it isn't cheap. San Jose Employee Relations Director Alex Gurza said that with stenographers and expert witnesses, the city bill can reach $500,000. Advocates say the process offers a fair and efficient way to resolve compensation disputes through a neutral observer having no stake in the outcome. It Advertisement can prevent strikes from disrupting public services. Or in the case of police and firefighters -who thanks to law changes since the 1970s are effectively barred from striking -restore balance to the negotiating table. Beattie said that otherwise, "We're really resorting to collective begging." 'We'd just have to take what they offered us," Beattie said. "We believe we should have some recourse to negotiate a fair contract or have somebody come in and take a look at it. n Critics argue that the process takes budget decisions out of the hands of elected officials. Vallejo City Councilwoman Marti Brown, who helped lead the measure campaign, said that with three- quarters of the city's budget spent on employee pay and benefits, arbitration effectively left her deciding just the remaining fraction. A senior planner for the Sacramento Housing and Redevelopment Agency who has negotiated for her own union, Brown found a very different dynamic with binding arbitration in Vallejo. Unions had no incentive to bargain, and city officials felt pressured to make generous offers to avoid a more costly arbitration award. ''They'd really have us over a barrel," Brown said. Twenty-two other California cities and one county - all in Northern Califomia except for Anaheim - followed Vallejo in adopting binding interest arbitration, said Davis, who said he has "been involved in almost all" of those efforts. Vallejo's arbitration covered all city workers, but most jurisdictions limit it to police and firefighters, as San Jose does. Santa Clara County voters in 2004 rejected Measure C, which would have given binding arbitration to county nurses, jailers and http://www.mercurynews.comlbay-area-news/ci _1543 8127?nclick _ check= 1 7112/2010 Vallejo's experience with bankruptcy, arbitration reform may spur action in San Jose -Sa... Page 3 of 4 It)eJlerturg News MercuryNews.com lawyers. Vallejo setting a trend? Davis thinks city officials in Vallejo and elsewhere unfairly blame arbitration for money woes. Vallejo's bankruptcy had much to do with the city's ineptitude in attracting development, he said, and most employee pay and benefit decisions were agreed upon rather than arbitrated. Beattie and San Jose Firefighters President Randy Sekany agree, saying their unions have invoked arbitration just a couple of times each. They say the arbitrator takes the city's financial health into account, and they don't see the process skewed in their favor -Sekany notes that the city prevailed on wages in the firefighters' 2007 arbitration. But San Jose Mayor Chuck Reed said binding arbitration has directly or indirectly driven the city's nine-year run of red ink. Average employee costs have risen more than three times faster than revenues, and police and firefighter expenses almost doubled in a decade. The 2007 arbitration gave firefighters a richer pension that cost the city $5 million more a year. While the city has reached agreements for 10 percent pay cuts with most other unions to help close a record $118.5 million deficit, it will likely get less than half that from police and firefighters because of arbitration, Reed said. He called it the "biggest impediment we have to good-faith negotiations" and said he is weighing whether to put a repeal or modification measure on the ballot, possibly in November. A county civil grand jury this year recommended such a move. Councilman Pierluigi Oliverio said more than 83 percent of those responding to his online survey on the budget this year favored modifying arbitration. Advertisement Eat Gre~t, !:l.ose" Vallejo, nestled along the olive waters of San Pablo Bay on the north end of Interstate 80's Carquinez Bridge, has seen its ups and downs. Briefly the state's capital, the city's fortunes rose as the 148- year home of the Mare Island Naval Shipyard. After that fell victim to defense downsizing in 1996, a housing boom helped take up the slack. Six Flags Discovery Kingdom still attracts visitors. But the city has suffered unfavorable headlines, from the 1999 kidnapping and murder of 7-year-old Xiana Fairchild to its recent bankruptcy. But longtime resident Keith Vincent, 85, a retired pediatrician, said Vallejo's repeal of binding arbitration may show the city on the leading edge of govemment reform. "Several other cities are all going through this . problem," Vincent said. "We're just the beginning of everything." Contact John Woolfolk at 408-975-9346. cities with binding arbitration California cities that have adopted binding interest arbitration for employees: Vallejo: 1970 for all employees. Repealed 2010. Oakland: 1973 for police and ftreftghters. Hayward: 1975 for fIreftghters. Palo Alto: 1978 for police and fIreftghters. San Jose: 1980 for police and fIreftghters. Alameda: 1980 for fIreftghters. Redwood City: 1987 for fIreftghters. Gilroy: 1988 for police and fIreftghters. San Francisco: 1990 for police and fIreftghters, later other workers. Petaluma: 1990 for fIreftghters. San Leandro: 1992 for police and fIreftghters. Call1-888-378-31S1 and get a FREE week of meals plus a BONUS $25 gift! t=:'~~~:"';"r';': "=~::~~=;(~ allItOfCOl.'INilslf"t.< ''';' ;:. .., .. -':"'~ ::.--'~." ::-.. ~ '" ". :,:...~' ---.;:., http://www.mercurynews.comlbay-area-news/ ci _1543 8127?nc1ick _ check= 1 7112/2010 Vallejo'sexperience with bankruptcy, arbitration refonn may spur action in San Jose -Sa... Page 4 of 4 m,eJlerturgNews MercuryNews.com Stockton: 1992 for fIrefIghters. Santa Rosa: 1996 for police and fIrefIghters. Napa: 1996 for police and fIrefIghters. Santa Cruz: 1996 for fIrefIghters. Sacramento: 1997 for police, 1998 for frrefIghters .. Sacramento County: 1998 for deputy sheriffs. Anaheim: 1998 for fIrefIghters. Modesto: 1998 for police and fIrefIghters. Salinas: 1998 for frrefIghters. Watsonville: 1998 for frrefIghters. San Luis Obispo: 2000 for police and frrefIghters. Monterey: 2002 for police and fIrefIghters. Oroville: 2004 for frrefIghters. Source: Alan C. Davis, attorney at law Advertisement _, ·,v. "~_~, __ ."....,.. •. ~_,.'., ... _ Print Powered By f:'~J~~::::2]~j~~QXr:!9_r:!:l_i5??, http://www.mercurynews.comlbay-area-news/ci_15438127?nc1ick_check=1 7/1212010 City of Vallejo -Questions & Answers A TT ACHMENT '';c'' Page 1 of2 Date: 3/18/2010 Search: I I @£l -i1""'-_ Measure A: Charter Amendment to Remove Binding Interest Arbitration from the Vallejo City Charter Frequently Asked Questions Q: What is binding interest arbitration? A: Binding interest arbitration is a process that requires the final decision on the wages, hours and working conditions for City employees to be made by a~ outside arbitrator and not by voters or the City Council. The .decision by the outside arbitrator is final and the City Council cannot overrule it. Q: Why does Vallejo currently use binding interest arbitration? A: The current binding interest arbitration process was added to the City Charter more than three decades ago after a strike by Vallejo public safety unions. The City Charter section requiring binding interest arbitration was seen as a tool to ensure contract disputes with the City's public safety unions did not end in strikes. California law now prohibits firefighters and police officers from striking. other City employees are not subject to this prohibition. Q: Is binding interest arbitration used in other California cities? A: 25 of California's 479 cities use binding interest arbitration to resolve contract disputes with public employee unions. More than 94 percent of all California cities rely on eXisting state law (known as the Meyers-Milias-Brown Act or MMBA) to ensure employees have a right to be represented fairly in negotiations with the City. IQ: What Is being proposed? I A: Since binding interest arbitration was adopted by the voters as part of the Vallejo City Charter it can only be repealed by another vote of the people. The City Council voted on February 9, 2010 to place Measure A, which asks voters to decide if they would like to remove binding interest arbitration from the City Charter, on the June 8, 2010 ballot. Q: What would Measure A do? A: Measure A allows VallejO voters to decide if the City Council -and not an outside arbitrator -should have the authority to make decisions on the wages, hours and working conditions for City employees. Q: How will repealing binding interest arbitration affect City spending? A: Spending on public employee wages and benefits accounts for approximately 75 percent of Vallejo's current year general fund budget. By removing binding interest arbitration from the City Charter, the City Council will gain the final authority to set spending for public employee salaries and benefits and therefore have greater control over how to allocate Vallejo's tax dollars. Q: Is Measure A related to the City's bankruptcy filing? A: No. Measure A is not related to the bankruptcy filing, which is still on-going. Q: How did the City Council decide to put Measure A on the ballot? A: In 2009,the City Council appointed a fourteen member citizens' committee charged to review the City Charter. The committee held several public hearings on binding interest arbitration and its effects on the City of Vallejo. The hearings included an educational session on binding interest arbitration by two disinterested labor law attorneys; advocacy presentations from a citizen committee and union groups; and comments from the public. After review of all of the information provided, the Committee voted to recommend that the City Council place a measure on the ballot to repeal binding interest arbitration. The City Council voted on February 9, 2010 to place Measure A, which asks voters to decide if they would like to remove binding interest arbitration from the City Charter, on the June 8, 2010 ballot. Q: How can I find out more about binding interest arbitration and Measure A? A: Additional information on binding iRterest arbitration and Measure A may be found on the City's website www.cLvallejo.ca.us. If you have additional questions please email MeasureA@ci.vallejo.ca.u5 or call 707-551- 4422. http://www.ci.vallejo.ca.us/GovSite/default.asp?serviceID1=764&Frame=L1 3/18/2010 City of Vallejo -Measure A: Charter Amendment to Remove Binding Interest Arbitration... Page 1 of 1 Contact Us Official Documents Date: 3/18/2010 Search: I I [§2] MMIMMMA Measure A: Charter Amendment to Remove Binding Interest Arbitration from the Vallejo City Charter Questions & Answers The Vallejo City Council voted on February 9, 201010 place Measure A on the June 8, 2010 ballot, which would remove Binding \. ) Interesl Arbitration (Section 809, entitled 'Employer-Employee Relations, Mediation Arbitration) from the City Charter .. ~------~ Measure A allows Vallejo voters to decide if the City Council-and not an outside arbHrator -should have the authority to make decisions on the wages. hours and working conditions for CHy employees. By removing binding inleresl arbitration from Ihe City Charter, the Cily Council will gain the final authority to set spending for public employee salaries and benefits and therefore have greater control over how to allocate Vallejo's tax dollars. This webpage was created as an informational tool to help voters understand why Measure A was placed on the ballol by the City Council. We urge you 10 check back frequently for updales and announcements. If you have additional questions please. email MeasureA@cjvallejo ca us or call 707-551-4422. For addHional voter information, please Click here. 5S5 Santa Clara Street. VallejO, California 94590 Home I Autwt V<JUi:!jc I DepartmelHS i City Coul".iI I E-Govemme.nt I Contact I Sit2: t-lap 1 Cale.nd.lr ! Dis:r.laitner Copyright i002-2010, City of Vallejo California http://www.ci.vallejo.ca.us/GovSite/default.asp?serviceID 1 =763 &Frame=L 1 3/18/2010 ADMIN D Agenda No. COUNCIL COMMUNICATION Date: February 9, 2010 TO: FROM: Honorable Mayor and Members of the City Council Robert F. D. Adams, Interim City Manageav ~ ~ Craig Whittom, Assistant City Manager ICommunity Developmen~ John Nagel, Assistant City Attorney d) SUBJECT: CONSIDERAllON OF RESOLUTIONS RELATED TO CALLING AND ORDERING AN ELECTION TO SUBMIT TO THE VOTERS A PROPOSED CHARTER AMENDMENT MEASURE TO REPEAL SECTION 809, ENTITLED "EMPLOYER~EMPLOYEE RELATIONS, MEDIATION ARBITRATION" (BINDING INTEREST ARBITRATION), TO BE PLACED ON THE JUNE B, 2010 BALLOT PROPOSED ACTION It is recommended that the City Council adopt three resolutions related to a City of Vallejo Charter amendment measure to repeal Section 809, entitled "Employer- Employee Relations, Mediation Arbitration" (Binding Interest Arbitration), to be placed on the June 8,2010 ballot. . BACKGROUND AND DISCUSSION On March 10,2009, the City Council appointed a fourteen member committee charged to review the City Charter. The Committee first considered how to prioritize what the City Council had asked them to review. The Committee determined that Section 809 of the City Charter (Employer-Employee Relations, Med;ation Arbitration, also referred to as "Binding Interest Arbitration") should be its first priority and would be considered by the Committee as a whole. The Committee reviewed Section 809 during their scheduled and publicized meetings. Over a period of approximately two months, the Committee held nine (9) meetings, including the required published public hearing, prior to voting , on their recommendation regarding Section 809. The process included the following: 1. An overview of Section 809 of the City Charter by the City Attorney and staff. 2. An educational session on Binding Interest Arbitration by two disinterested attorneys, Attorney Art Hartinger representing a management perspective and Attorney Ronald Yank representing a labor perspective. J:IJNICharter Section 809 6-10102-09-10 Binding InterestArbltration Staff Report (Final).docx ADMIN 0 Page 2 3. Advocacy presentations from: a. The Citizen Committee that had attempted to place a measure repealing Section 809 on the ballot. b. The City Union groups: Confidential, Administrative, Managerial and Professional Group -(CAMP); Attorney Alan Davis qn.d the Intemational Brotherhood of Electrical Workers -(I SEW}; Vanejo Police Officers Association -(VPOA); and the International Association of Fire fighters - (IAFF). c. The City staff with Attorney Jeffrey Sloan from Renne, Sloan, Holtzman and Sakai, LLP presented management perspective. 4. Rebuttals from: a. The Union groups along with Attorney Alan Davis (CAMP did not participate). b. Former City of Vallejo Human Resources Director Mark Gregersen, Attorney Jeffrey Sloan and City staff. 5. Received public input during each meeting. 6. Presentation on the Impasse Resolution Procedures relating to the Meyers- Milias-Brown Act by Attorney Art Hartinger and Attorney Ronald Yank. On June 17, 2009, after review of all of the information provided, the Committee voted to recommend to the City Council that measure to repeal City Charter Section 809 be placed on the ballot for the November 3, 2009 election, by a 9-5 vote. On June 24, 2009, the Committee adopted its report on this recommendation, On June 30, 2009, the Committee's report and findings supporting its recommendation to repeal Section 809 and a Minority Report were provided to City Council for its consideration. The City Council adopted Council Resolution No. 09-156 N.C., which accepted the Committee's Report and directed staff to: 1) prepare and bring back to City Council for its consideration a ballot measure to be placed on the June 2010 ballot for the public to decide whether or not to remove Section 809 from the Charter, 2) prepare a process for dispute resolution that goes with that measure to be placed on the ballot at the same time, and 3) to commence the meet and consult process with recognized employee organizations. On July 23, 2009, City representatives sent a letter notifying the VPOA, IAFF, and ISEW of the City Council's direction, and inviting the Unions to meet and consult over the City Council's resolution. The letter included the City's lnitial proposal to repeal Section 809. Representatives of the City and the three labor Unions met on September 21, 2009, and again on November 10, 2009, at which time the Unions provided a proposal modifying J:IJN\Charter Section 809 6·10\02-09-10 Binding InterestArbitralion Staff Report (Final).docx ADMIN 0 Page 3 the provisions of Section B09, but maintaining binding interest arbitration as the ultimate conclusion of the City's impasse procedure. The Unions indicated that binding interest arbitration was the essential element of their proposal. Given the distance between the parties, the City sent a letter declaring impasse on November 19, 2009. The Unions have not responded to that letter and the City has advised the Unions in writing that the meet and consult procesB has concluded. City representatives also met with representatives of CAMP on November 19,2009 and indicated that the City intended to present a ballot measure repealing Section 809. CAMP representatives indicated that they would notify the City if they were interested in consulting over this proposal. As the City has received no response from CAMP the City has advised CAMP in writing that the meet and consult process has concluded. As the meet and consult process had been completed, Staff prepared a draft measure title, ballot question and additional recommendations for City Council's consideration. On January 26, 2010, Staff presented a report to the City Council, including a draft measure title and ballot question, recommending that the City Council not put a companion alternate dispute resolution measure on the June B, 2010 ballot-(because the Meyers-Milias-Brown Act provides for the adoption of impasse procedures by ordinance), and recommending the retention of elections consultants to assist the City in placing a measure on the June 8, 2010 ballot. The City Council adopted a resolution authorizing the City Manager to execute elections consultant contracts, discussed whether an alternative impasse resolution procedure needed to be placed on the June 8,2010 ballot and asked if staff could simplify the draft ballot question while maintaining the intent of the measure. ELECTIONS RESOLUTIONS In order to submit a measure to the voters for approval, the City Council must adopt three resolutions. RESOLUTION, ON THE VALLEJO CITY COUNCIL'S OWN MOTION, CALLING AND ORDERING A SPECIAL MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE STATEWIDE DIRECT PRIMARY ELECTION TO BE HELD ON TUESDAY, JUNE 8, 2010 TO SUBMIT TO THE VOTERS A PROPOSED CHARTER AMENDMENT, ENTITLED "CHARTER AMENDMENT TO REMOVE BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER" Attachment A is the proposed resolution calling and ordering an election. The resolution must include the measure title and ballot question. Attachment A includes the following revised draft measure title and ballot question, subject to consideration and approval by J:\JN\Charter Section 809 6-10\02-09-10 !3inding InterestArbitralion Staff Report (Final).docx ADMIN D Page 4 the City Council: PROPOSED MEASURE TITLE AND BALLOT QUESTION CHARTER AMENDMENT TO REMOVE BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER Shalf Section 809 of the Charter of the City of Vallejo be repealed to YES remove the mediation/arbitration process, commonly referred to as binding interest arbitration, that permits an arbitrator, without City Council approval, to make the final decision to resolve disputes between the City and its recognized employee organizations on all matters relating to wages, hours, and working conditions and NO instead to use the method of resolving such disputes set forth in state law? RESOLUTION SETTING PRIORITIES FOR THE FILING OF WRITTEN ARGUMENTS WITH RESPECT TO A PROPOSED CHARTER AMENDMENT, ENTITLED "CHARTER AMENDMENT TO REMOVE BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER" AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS The second resolution (Attachment B) is drafted so that the City Council could authorize an individual City Council member or more than one City Council member to write an argument for or against the proposed Charter Amendment. The City Council may authorize up to five (5) members to write an argument for or against the Charter Amendment. The City Council is not obligated to name any of its members. If the Council chooses not to authorize any member(s} to write arguments, then any individual voter who is eligible to vote on the measure, or bona fide associations of citizens, or any combination of voters and associations, may file a written argument for or against the Charter Amendment pursuant to Elections Code Section 9282. Assuming that the City Council desires an impartial analysis to accompany the measure, the City Council would have to adopt the portion of the Resolution directing the City Attorney to draft an impartial analysis. During the meeting of February 9, 2010 staff is requesting that the City Council decide upon the members or decide to not authorize any members to write arguments. If the J:IJNICharter Section 809 6-10102-09-10 Binding InterestArbilration Staff Report (Final).doCJ( ADMIN D Page5 City Council decides not to file a written argument in favor of the measure, the City Clerk will select an argument in favor of the measure for the ballot pamphlet in accordance with the priority order set forth in Elections Code Section 9287, which states:. If more than one argument fer or more than one argument against any city measure is submitted to the city elections official within the time prescribed, he or she shalT select one of the arguments in favor and one of the arguments against the measure for printing and distribution to the voters. In selecting the argument the city elections official shall give preference and priority, in the order named, to the arguments of the following: (a) The legislative body, or member or members of the legislative body authorized by that body. (b) The individual voter, or bona fide association of citizens, or combination of voters and associations, who are the bona fide sponsors or proponents of the measure. (c) Bona fide associations of citizens. (d) Individual voters who are eligible to vote on the measure. RESOLUTION PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS WITH RESPECT TO A PROPOSED CHARTER AMENDMENT, ENTITLED "CHARTER AMENDMENT TO REMOVE BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER" TO BE SUBMITTED TO THE VOTERS AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, JUNE 8,2010 The City Council also has the authority to determine if rebuttal arguments will be permitted. If rebuttal arguments are permitted, the author or a majority of the authors of an argument relating to a City measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, SUbmit, or sign the rebuttal argument. Staff recommends that the City Council adopt a resolution authorizing rebuttal arguments on the measure (see Attachment C). Rebuttal arguments provide additional information to the voters, and staff recommends that the additional expense is warranted to assist the voters in understanding the measure. Pursuant to Elections Code Section 9285 (b) this Resolution must be adopted no later than the day on which J:\JN\Charter Section 809 6-10\02-09-10 Binding InlerestArbltralion Staff Report (Final).docx ADMIN D Page 6 the City Council calls the election, and if the Resolution is adopted then it applies "at the nexfensuing municipal election and at each municipal election thereafter, unless it is later repealed" by the City Council. RECOMMENDATION In order to proceed with the placement of the proposed charter amendment measure on . the June 8, 2010 ballot, it is recommended that the City Council adopt the three proposed resolutions. ALTERNATIVES CONSIDERED In order for the City Council to submit this proposed charter amendment measure to the voters, there is no other alternative. ENVIRONMENTAL REVIEW The submittal of a Charter Amendment to the voters is not a project as defined by the California Environmental Quality Act ("CEQA") pursuant to section 15378 (b) (3) of Title 14 of the California Code of Regulations as it concerns the submittal of proposals to the voters of the City and is not subject to environmental review. A Notice of Exemption will be filed with the Solano County Clerk. FISCAL IMPACT The cost estimate from the Solano County Registrar of Voters regarding placing a charter amendment on the June 8, 2010 ballot is approximately $378,000. The cost of consultant assistance for project management and educational materials is estimated at $80,000. The approved FY 2009-10 budget includes an appropriation for the June 8, 2010 measure. No further action to amend the budget is required at this time. CITY COUNCIL AREAS OF FOCUS The Charter Review Committee was initiated by the City Council in early 2009, and as such its scope and recommendations are a component of the Areas of Focus developed by the City Council in 2008. J:\JN\Ch:arter Section 8096-10\02-09-10 Binding InterestArbilralion Slaff Report (FinaO.docx ADMIN D Page 7 DOCUMENTS ATTACHED AlTACHMENT A -RESOLUTION, ON THE VALLEJO CITY COUNCIL'S OWN MOTION, CALLING AND ORDERING A SPECIAL MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE STATEWIDE DIRECT PRIMARY ELECTION TO BE HELD ON TUESDAY, JUNE 8,2010 TO SUBMIT TO THE VOTERS A PROPOSED CHARTER AMENDMENT, ENTITLED "CHARTER AMENDMENT TO REMOVE BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER". AlTACHMENT B -RESOLUTION SElTlNG PRIORITIES FOR THE FILING -OF WRllTEN ARGUMENTS WITH RESPECT TO A PROPOSED CHARTER AMENDMENT, ENTITLED "CHARTER AMENDMENT TO REMOVE BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER" AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS AlTACHMENT C -RESOLUTION PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS WITH RESPECT TO A PROPOSED CHARTER AMENDMENT, ENTITLED "CHARTER AMENDMENT TO REMOVE' BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER" TO BE SUBMllTED TO THE VOTERS AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, JUNE 8, 2010 CONTACT PERSONS Craig Whittom, Assistant City Manager/Community Development (707) 648-4579 cwhittom@ci.vallejo.ca.us or John Nagel. Assistant City Attorney (707) 648-4545 nagel@ci.vallejo.ca.us J:\JN\Charter Section 8096-10\02-09-10 Binding InterestArbitration Staff Report (Final).docx RESOLUTION NO. 10-_ N.C. ADMIN 0 ATTACHMENT A RESOLUTION, ON THE VALLEJO CITY COUNCIL'S OWN MOTION, CALLING AND ORDERING A SPECIAL MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE STATEWIDE DIRECT PRIMARY ELECTION TO BE HELD ON TUESDAY, JUNE 8, 2010 TO SUBMIT TO THE VOTERS A PROPOSED CHARTER AMENDMENT, ENTITLED "CHARTER AMENDMENT TO REMOVE BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER". WHEREAS, on March 10, 2009, the City Council adopted Resolution No. 09-043 N.C. establishing the Charter Review Committee, and WHEREAS, on June 30, 2009, the Charter Review Committee recommended to the City Council that a measure to repeal Section 809 (Employer-Employee Relations, Mediation Arbitration) of the Charter of the City of Vallejo be submitted to the voters at the General Municipal Election to be held on November 3, 2009; and. WHEREAS, the City Council desires, on its own motion, to submit to the voters a question relating to the repeal of Section 809 (Employer-Employee Relations, Mediation Arbitration) from the Charter of the City of Vallejo at a Special Municipal Election to be consolidated with the Statewide Direct Primary Election to be held on June 8, 2010. NOW, THEREFORE, THE COUNCIL OF THE CITY OF VALLEJO DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS, THAT: SECTION 1. The City Council pursuant to its right and authority under Article XI, section 3(b) of the California Constitution and Government Code section 34458, does order to be submitted to the voters at a Special Municipal election the following question: -1- J:WN\Charter Section 809 6-10\Binding Interest Arbitratiori Resolution Call Election (Final}.doc ADMIN D CHARTER AMENDMENT TO REMOVE BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER Shall Section 809 of the Charter of the City of Vallejo be repealed to YES remove the mediation/arbitration process, commonly referred. to as binding interest arbitration, that permits an arbitrator, without City Council approval, to make the final decision to resolve disputes between the City and its recognized employee organizations on all mattt;rs relating to wages, hours, and working conditions and NO instead to use the method of resolving such disputes set forth in state law? SECTION 2. The proposed complete text, with additions indicated by underscoring and deletions indicated by strike through type, of the proposed Charter Amendment submitted to the voters is as attached in Exhibit 1 to this Resolution, which is incorporated herein by this reference. SECTION 3. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 4. Notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law . . SECTION 5. The City Clerk is hereby directed to file a certified copy of this Resolution with the Solano County Board of Supervisors and the Solano County Registrar of Voters. SECTION 6. The City Manager and the City Clerk are hereby authorized and directed to take any and all actions necessary under law to prepare for and conduct the June 8, 2010 election and appropriate aU monies necessary for the City Manager and the City Clerk to prepare and conduct the June 8, 2010 election consistent with law. J:IJNICharter Section B09 6-101Binding Interest Arbitrnlion Resolution Call Election (FillaQ.doc ADMIN D SECTION 7. Pursuant to Section 15378 (b) (3) of Title 14 of the California Code of Regulations, this Resolution is exempt from the requirements of the California Environmental Quality Act ("CEQAn) in that it is not a Project as it concerns the submittal of a proposal to the voters of the City and is not subject to environmental review. The City Clerk is hereby directed to file a Notice of Exemption with the Solano County Clerk. J:\JN\Charter Section 809 6-1 o\Binding Interest Arbitration Resolution Call Election {Final).doc ADMIN 0 EXHIBIT 1 CHARTER AMENDMENT TO REMOVE BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER Article VIII of the Charter of the City of Vallejo is amended to repeal Section 809 as follows: Section 809 Employer Employee Relations, Mediation Arbitration. Consistent with applicable law, the Cit,. Council shall by ordinance provide a system of collective negotiating to include: a. It shall be the right of City employees individually or collectively to negotiate on matters ofwage5, homs, and working conditions, but not on matters in',01'lin9 the merits, necessity, or organization of any service or activity provided by law, or on any matter arising out of Sections 803(n) or 803(0) of this Charter. . b. The City Manager and/or his/her designated representative(s) shall negotiate in good faith 'lJith the recognized employee organizations. The City Council may appoint a committee which shall be composed solely of Council members to assist the City Manager and/or hislher designated representati'.'e(s) in said negotiations if the Council in its judgment deems such in the best publio interest. c. Both parties shall exchange their ' .... ritten demands at least 180 oalendar days before the expiration of the then current agreement or arbitration award. Collective negotiations shall commenoe at least 150 calendar days before the expiration of the then ourrent agreement or arbitration cPNard. d. Agreements reached between City representatives authorized in (b) abo'/e and the representatives of the recognized employee organizations shall be submitted in writing to the City Council for its appro\'al, modification, or rejection. All such agreements shall provide for expiration at the end of a fiscal year. All phases of negotiations, mediation and arbitration including the final binding decision of the mediator,larbitrator shall be I completed at least 25 calendar days before the end of the fiscal year. J:\JN\Charter Section B09 6-10\Binding Interest Arbitration Resolution Call Election (Flnal).doc ADMIN D e. Both parties shall select and schedule a mediatorlarbitrator at least 200 calendar days before the expiration of the then current agreement or arbitration award. If they are unable to agree upon a mediator/arbitrator, they shall select such person from a list of seven names to be provided by an impartial third party mediationJarbitration service mutually acceptable to the parties. The parties shall provide the mediation/arbitration service with sufficient notice to insure receipt of the list at least 1 gO calendar days before the expiration of the then current agreement or arbitration a'Nard. If at least 180 calendar days before the expiration of the then current agreement or arbitration a'Nard the parties still cannot agree upon a mediator/arbitrator, they shall immediately alternately strike names from the list, the choice of the first strike to be determined by lot. The last remaining unstruck name shall be selected and scheduled as mediator/arbitrator. f. If, 90 calendar days before the expiration of the current agreement or arbitration a'Nard, no agreement can be reached, or if the City Council refuses to ratify the agreement arrived at or modifies such agreement in any manner unacceptable to the employee organization, the parties shall commence mediation. g. If no agreement between the parties has been shed within 14 calendar days after the start oJ mediation, the mediatorlarbitrator shall thereupon commence arbitration proceedings to deal with the issues still in dispute. Each party shall put in '.witing its last best offer on each of the issues still in dispute 'Nithin 14 calendar days after the start of arbitration proceedings, and these offers shall immediately be made public. The mediatorl-arbitrator shall choose one of the parties' last best offer far each issue still in dispute and shall have no power to modify or compromise the last best offers of either party. The mediator/arbitrator shall hear the evidence presented and oonsider all factors relevant to the issues from the standpoint of both employer and affected employees, including the interests and welfare of the public and the financial ability of the City to meet those costs. If one of the parties fails to submit its last best offer \~Jithin the above allotted time, then the mediatorl-arbitrator shall be obligated to make an award incorporating the terms and conditions of the last best offer made by the party that has submitted its offer llt'ithin the above allotted time. To the extent permitted by laIN, the decision of the mediator/arbitrator shall be final and binding on all parties. Any arbitration alNard issued shall provide for expiration at the end of a fisoal year. h. The costs of mediation and arbitration, including the scheduling of the mediatorlarbitrator, shall be borne equally by all parties. Arbitration hearings shall be conducted within the City of Vallejo and closed to the public, unless otherwise mutually agreec upon by the parties with the concurrenee of the mediatorlarbitrator. i. Nothing in this section shall modify the authority of the Civil Service Commission to exercise the pm· .. ers expressly confirmed upon it by this Charter. J:\JN\Charter Section B09 6-1 O\Blnding Interest Arbitration Resolution Call Election (Final).doc ADMIN 0 j. The provisions of this Section shall not be construed as making any of the prO';lsions of Seotion 923 of the Labor Code of the State of Califurnia applicable to City employees. The provisions of this Section pertaining to arbitration shall be construed as an "arbitration agreement" fur the purpose of making applicable to the extent not in conflict herewith the provisions of Chapter I (commencing with Section 1280), Title 9, Part 3 of the Code of Civil Procedure of the State of Califurnia. Any employee 'I/ho at any time participates in a strike or other work stoppage or other ooncerted 'NOrk related action against the City of Vallejo 'lIiII be considered to have terminated histher employment with the City and neither the Council nor the Civil Sep/ioe Commission shall have any power to provide by reinstatement or otherwise fur the return or re entry of said employee into the City service except as a ne'll employee 'tYho is employed in accoFClance with the regular employment practices of the City then in effect fur the particular position of employment. The question of '.vhether an employ€e oharged with participating in a strike or 'NOrk stoppage or other concerted work related astion did, in fast, engage in such conduct shall be determined through the disciplinary procedures applicable to employees generally. (Amendment adopted by the electors oOhe city, 11t4l80: amendment adopted by the electors of the city, 1117/00.) J:\JN\Charter Section 809 6-10lBinding Interest Arbitration Resolution Call Election (Final).doc ADMIN D ATTACHMENT B RESOLUTION NO. 10-_ N.C. RESOLUTION SETTING PRIORITIES FOR THE FILING OF WRITTEN ARGUMENTS WITH RESPECT TO A PROPOSED CHARTER AMENDMENT, ENTITLED "CHARTER AMENDMENT TO REMOVE BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER" AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS WHEREAS, a Special Municipal Election is to be held in the City of Vallejo on Tuesday, June 8,2010, at which there will be submitted to the voters of said City a measure in substantially the following form: CHARTER AMENDMENT TO REMOVE BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER , Shall Section 809 of the Charter of the City of Vallejo be repealed to YES remove the mediation/arbitration process, commonly referred to as binding interest arbitration, that permits an arbitrator, without City Council approval, to make the final decision to resolve disputes between the City and its recognized employee organizations on all matters relating to wages. hours, and working conditions and NO instead to use the method of resolving such disputes set forth in state law? NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VALLEJO DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS. THAT: SECTION 1. The City Council hereby authorizes _____ (Council Member in Favor) _____ (Council Member in Favor) _____ (Council Member in Favor) _____ (Council Member in Favor) _____ (Council Member in Favor) 1 _____ (Council Member Against) _____ (Council Member Against) _____ (Council Member Against) _____ (Council Member Against) _____ (Council Member Against) J:\JN\Charter Section 809 6-10\Binding Interest Arbitration Resolution Argument (Final).doc ADMIN 0 members of that body to file a written argument(s) with the City Clerk regarding the City Measure (Charter Amendment) as specified above, accompanied by the printed names(s) and signature(s) of the author(s), not exceeding 300 words, and in accordance with the Elections Code of the State of California, Section 9280,et seq., and may be changed untiland including the date fixed by the City Clerk, after which no arguments for or against the measure may be submitted to t!1e City Clerk. SECTION 2. The City Council hereby directs the City Clerk to transmit a copy of the City Measure to the City Attorney. The City Attorney shall cause to be prepared an impartial analysis of the measure showing the effect of the measure on the existing law and the operation of the measure. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. 2 J:\JN\Charter Section 809 6-1 Q\Bindin9 Interest Arbitration Resolution Argument (Final).doc ADMIN D ATTACHMENT C RESOLUTION NO. 10-_ N.C. RESOLUTION PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS WITH RESPECT TO A PROPOSED CHARTER AMENDMENT, ENTITLED "CHARTER AMENDMENT TO REMOVE BINDING INTEREST ARBITRATION FROM THE VALLEJO CITY CHARTER" TO BE SUBMITTED to THE VOTERS AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, JUNE 8, 2010 WHEREAS, Section 9285 of the California Elections Code authorizes the City Council, by majority vote, to adopt provisions for the filing of rebuttal arguments for city measures submitted at municipal elections; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VALLEJO DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS, SECTION 1. Pursuant to Section 9285 of the California Elections Code, when the elections official has selected the arguments for and against the measure which will be printed and distributed to the voters, the elections official shall send a copy of an argument in favor of the measure to the authors of any argument against the measure, and a copy of an argument against the measure to the authors of any argument in favor of the measure immediately upon receiving the arguments. The author or a majority of the authors of an argument relating to a City measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing' any other person or persons to prepare, submit, or sign the rebuttal argument. A rebuttal argument may not be Signed by more than five persons. The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf 1 J:\JN\Charter Section B09 6-10\Binding Interest Arbitration Resolution Rebuttal Argument (Final).doc ADMIN 0 of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing direct arguments. The rebuttal arguments shall be accompanied by the Declaration by Author(s) form to be supplied by the City Clerk. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. SECTION 2. All previous resolutions· providing for the filling of rebuttal arguments for City measures, if any, are repealed. SECTION 3. The provisions of Section 1 shall apply only to the Special Municipal Election to be held on Tuesday, June 8, 2010, and shall then be of no further force and effect. 2 J:IJN\Charter Section 809 6·1 O\Binding Interest Arbitration Resolution Rebuttal Argument (Finall·doc Number of issues likely to be on November ballot I Recordriet.com By Daniel Thigpen July 14, 2010 Record Staff Writer ATTACHMENT "C" News NUMBER OF ISSUES LIKELY TO BE ON NOVEMBER BALLOT VOTERS TO HAVE LOUDER VOICE STOCKTON -Expect a heavier ballot this November. Page 1 of2 Voters this fall could change how Stockton's fire chief is hired, how labor disputes with firefighters are handled and whether medical marijuana is taxed. The City Council on Tuesday asked city staff to draft ballot language for all of those items and indicated it is likely to place them on the ballot at its next meeting, on July 27. Already deep into a bitter labor dispute with the city's fire union, a push to change long-held Fire Department provisions in Stockton's City Charter would create a new, months-long battle. As for marijuana, the cash-strapped city is hoping to create some extra revenue as it is poised to allow and regulate medical marijuana dispensaries in the coming weeks. "We certainly wouldn't want that to go up in smoke," Councilwoman Leslie Baranco Martin said of a proposed marijuana tax. Mayor Ann Johnston called changes to the Fire Department provisions of the City Charter a top priority. City leaders want to remove a charter section that requires labor disputes with the fire union to go to a third-party arbitrator whose decisions are final and can be enforced in court. Another target is a charter provision that dates back to the 1970s and requires that the fire chief be hired from within the department's ranks. ' Also, the city may ask voters to repeal another charter section that allows firefighters to earn and use no less than 15 days of vacation a year. "This is something that just doesn't seem necessary," Deputy City Manager Laurie Montes said. Critics say charter mandates and union contracts have stifled the city's ability to control staffing and employee costs. Stockton Professional Firefighters Local 456 opposes the proposed changes. The marijuana tax originally was part of a broader proposed business tax overhaul that requires voter approval to make changes. But Chief Financial Officer Mark Moses cautioned that to propose the changes this year, there would be little time for input from the business community. The City Council decided to put off those changes until a future election but made clear it wanted to continue to pursue a separate marijuana tax measure. Also expected on the November ballot is a measure to allow Stockton to develop publicly assisted low-income housing. The city can go to voters every 10 years for the authority. Voters last approved such a measure in 2000. The council chose not to pursue a revision to a conflict-of-interest section of the City Charter that came under http://www.recordnet.com/apps/pbcs.dl1lartic1e?AID=1201 00714/A _NEWS/1 007199501-11... 7/1412010 Number of issues likely to be on November ballot I Recordnet.com Page 2 of2 scrutiny after last year's controversial firing of Deputy City Manager Johnny Ford. Instead, the council opted to include the item in a possible long-term charter revision process that could include a citizens committee. Ford was accused of using his influence to get free tickets to city entertainment venues. A council investigation found Ford did not violate a city ticket policy and said the applicable conflict-of-interest charter provision was vague. Contact reporter Daniel Thigpen at (209) 546-8254 or dthigpen@recordnet.com. Visit his blog at record net.com/th ig penblog. . http://www.recordnet.comJapps/pbcs.dlllarticle?AID=/20100714/A _ NEWSIl 00719950/-11... 7114/2010 City weighs charter changes I Recordnet.com By Daniel Thigpen July 03, 2010 Record Staff Writer ATT ACHMENT "C" News CITY WEIGHS CHARTER CHANGES STOCKTON COULD TARGET FIREFIGHTER LAWS WITH BALLOT Page 1 of2 STOCKTON -Already Stockton's elected leaders are trying to break their contract with the city's fire union. Now they may go for more, seeking changes in municipal laws written specifically for firefighters. Later this month, the City Council will discuss several proposals for November ballot measures. Foremost in city leaders' sights are charter provisions that govern labor disputes with firefighters and dictate how the department's chief is hired. Expect another fight. The fire union's leader said he will oppose any efforts to alter the department's sections of the City Charter. The move comes at a time when firefighters have taken City Hall to court for its attempts to suspend pay increases and to close a truck company -which the fire union's contract prohibits -to help close a multimillion-dollar budget deficit. And the ballot debate won't just be about firefighters. Also in the works are a proposed overhaul of the city's decades-old business tax rules, including the possibility of taxing marijuana sales, and a review of a much- scrutinized conflict of interest City Charter section. The City Council will discuss what, if anything, to put on the November ballot at its next meeting July 13, just two weeks before the deadline to qualify for the fall election, officials said. "Yes, we understand it's a short window of time," Mayor Ann Johnston said. Fire provisions targeted City leaders want to repeal a section in the City Charter, enacted by a public vote in 1992, that requires labor disputes with the fire union to go to a third-party arbitrator, whose decisions are final and can be enforced in court. City governments frequently criticize binding arbitration for often siding with unions. Fire Capt. Dave Macedo, president of Stockton Professional Firefighters Local 456, said those concerns are exaggerated. For city leaders, the issue centers on their ability to get out from under the union's contract, which mandates minimum daily staffing and other directives that critics say have eroded the city's power to manage fire personnel and limit employee costs. Binding arbitration, Johnston said, "ties our hands, and takes away some control that rightfully should be in the hands of the council." http://www.recordnet.com!apps/pbcs.dlllarticle?AID=120100703/A_NEWSI70303351-lIa_... 7/1412010 City weighs charter changes I Recordnet.com Page 2 of2 Another potential target is a charter provision that dates back to the 1970s and requires that the fire chief be hired from within the department ranks. • Outgoing interim City Manager Kevin O'Rourke said he has been pushing council members for months to consider the changes. He said the fire chief provision doesn't make sense. "What it breeds is just the internalization of the existing culture" in the Fire Department, he said. Macedo said he will never support repealing the law. "You want somebody who has moved up through the ranks and are invested in the city," he said, cautioning against "career chiefs" who bounce between cities. Other items mulled Outside of fire matters, the City Council may also discuss rewriting a conflict-of-interest charter section at the center of last year's controversial firing of Deputy City Manger Johnny Ford. Former City Manager Gordon Palmer, who retired in September, fired Ford, saying Ford used his influence to get free tickets to city entertainment venues. Hundreds of people protested, some saying Ford was fired because he is black, a claim Palmer denied. A City Council investigation found Ford was unethical in appearance to take tickets from promoters but that Ford did not violate a city ticket policy. The council committee also called the applicable charter provision concerning gifts "nebulous and ambiguous,"and recommended it be rewritten. Meanwhile, city officials also are proposing a citywide business tax ordinance overhaul, changes that also would require a public vote. Fees for some businesses could increase, while others may drop. The ordinance changes include a proposal to levy a 2.5 percent tax on gross revenues at pot dispensaries. That annual tax could apply to marijuana sold for medical purposes or otherwise, depending on whether state voters legalize marijuana for recreational uses. Contact reporter Daniel Thigpen at (209) 546-8254 or dthigpen@recordnet.com. Visit his blog at recordnet.com/thigpenblog. http://www.recordnet.com/apps/pbcs.dll/artic1e?AID=/20100703/A_NEWS/7030335/-1/a_... 7114/2010 Measure B: Binding Arbitration -Santa Clara County, CA Page 10f8 ATTACHMENT "C" lbis is an archive of a past election. See http:_iLw-'1_w .. O)r[lCir:t::v9t~:r::.O :r:9I<::?b.<::J / for current information. iii League oflWomen Voters of California Education Fund Santa Clara County, CA November 7, 2006 Election Measure B Binding-Arbitration City of Santa Clara Majority Approval Required QFail: 9,853/43.86% Yes votes ...... 12,612/56.14% No votes See Also: lml~~_QL~Jl.M~~~lJt~$ Results as of Dec 41:58pm, 100.0% of Precincts Reporting (53/53) Information shown below: y"~SmQM~~DjJlg I h:!W~I1jflLAn.i!!y~is I ArglJm~l}ts I EIJILT~~j: Shall a section be added to the City Charter which would require binding arbitration before a three person arbitration panel of all unresolved disputes between the City and certain personnel of the Police and Fire Departments on all matters relating to wages, hours, and other terms and conditions of City employment, including the interpretation and application of any existing labor agreements? YES NO Meaning of Voting YeslNo A YES vote on this measure means: A "yes" vote would establish binding arbitration. A NO vote on this measure means: A "no" vote would retain existing City procedures. Impartial Analysis from the City Attorney [There may be errors in the retyping. Contact the Registrar of V oters for the official version.] This measure, if approved, would add a new City Charter section requiring binding arbitration on unresolved labor issues between the City of Santa Clara ["City"] and the Santa Clara Police Officers' Association and the Santa Clara Firefighters' Association [collectively "Public Safety Employees" or "PSE"]. Under existing law, the City is required to negotiate in good faith with its employee organizations about wages, hours, and other terms and conditions of employment ["labor issues"]. In the event http://www.smartvoter.org12006/11/07/ca/scl/meas/B/ Official Information Proponents CQmmitt~_~JQ __ Pr9J~.GtEix~_<!JlQ P9Ijc~.SelYi(;~$ __ Y~$QlJM~<!$lJJ~ 13 FPPC: 1265036 Opponents At this time there are no known opponent webpages News and Analysis This election is archived. Any links to sources outside of Smart V oter may no longer be active. No further links will be added to this page. Links to sources outside of Smart Voter are provided for infonnation only and do not imply endorsement. 712012010 Measure B: Binding Arbitration -Santa Clara County, CA that the parties cannot agree, an impasse exists. Currently, the City Council has discretion on how to respond to impasse situations. Past practice has included directing further negotiations, voluntary mediation and/or City Council imposition of terms and conditions discussed during negotiations. After an agreement has been reached between the City and its employee organizations, the current process authorizes the City Manager to ultimately resolve disputes regarding the interpretation or application of existing labor agreements ["grievances"]. This measure would eliminate the City Manager's grievance resolution authority. If the measure is approved, instead of the City Council resolving impasses with PSE, the labor issue dispute would be submitted to binding arbitration ["interest arbitration"]. This measures also requires establishment of binding arbitration for grievances ["grievance arbitration"]. This measure would also prohibit the City from eliminating or changing any existing benefits or conditions of employment for PSE unless the change was either (1) the result of a negotiated agreement or (2) a decision resulting from the arbitration procedure. The measure would provide for a three-member Board of Arbitrators ("Board") to hear interest arbitration or grievance arbitration. City and PSE would each select one arbitrator. The third arbitrator would be selected pursuant to the procedures set forth in the measure. The third arbitrator would serve as the neutral arbitrator and as the chairperson of the Board. The arbitration provisions of the California Code of Civil Procedure would apply. At the conclusion of the arbitration hearings, the Board would direct each of the parties to submit a last offer of settlement on each issue in dispute. The Board would decide each disputed issue by selecting whichever party's last offer of settlement on that issue the Board finds most nearly conforms with (1) the salary and benefits of the other designated public agencies for its public safety employees and (2) those factors traditionally considered in the determination of labor issues including, but not limited to, consideration of inflation, the financial condition of the City and the City's ability to meet the cost of the binding arbitration award. The parties would have ten days after the Board's decision to mutually agree upon any modifications to the award. At the end of the ten-day period, the award, including any modifications agreed upon, would be publicly disclosed and become binding on the parties. No voter or City Council approval would be required. A "yes" vote would establish binding arbitration. A "no" vote http://www.smartvoter.org/2006/11/07/ca/scl/measlB/ Page 2 of8 7/20/2010 Measure B: Binding Arbitration -Santa Clara County, CA Page 3 of8 would retain existing City procedures. Prepared by Michael R. Downey, City Attorney Arguments For Measure B [There may be errors in the retyping. Contact the Registrar of Voters for the official version.] Measure B is about one thing and one thing only; a fair decision making process for our police officers and fIrefighters. It's not about wages, hours or working conditions .. .it's about fairness for our public safety officers. Public safety officers need binding interest arbitration because it's the right thing to do. Currently when there is an unresolved dispute during negotiations, and the issue cannot be resolved, the City's final decision will be imposed on the police officers and firefighters. The City's decision cannot be appealed. All other Santa Clara City employee bargaining units have the right to exercise one last step ... the strike. Police officers and fIrefIghters are prohibited by law from going on strike, and rightly so. Santa Clara's citizen's safety is too important to jeopardize with a strike. Police and fIrefighters cannot strike; therefore there is no recourse to resolve disputes fairly. Our police offIcers and firefIghters deserve to have a fair process that provides a level playing field. Measure B will provide that fair and impartial process to resolve disputes. The arbitration process provided by Measure B does not guarantee that our public safety offIcers will win every time. But it gives them a fair chance, a chance they don't have now. V ote to give our police officers and fIrefIghters a fair system to settle disputes, they deserve it for putting their lives on the line for us every day. We ask for your YES vote on Measure B. Give Arguments Against Measure B [There may be errors in the retyping. Contact the Registrar of Voters for the official version.] Don't put your City services and tax dollars at risk! Passage of Measure B will take away final authority from your Elected City Council, Elected Police Chief and Fire Chief to control wages, benefIts, and day-to-day operating procedures for Police Officers and FirefIghters. AN OUTSIDE ARBITRATOR SHOULD NOT DECIDE: • How to spend your tax dollars. • How to staff the Police and Fire Departments. • What hours and days of the week employees work. • How much the City should pay its public safety employees. • How City services are delivered to residents and businesses. • Employee grievances. Basic democratic philosophy of city government puts control in your hands and those of your elected officials. An arbitrator accountable to no one removes that control. Keep these decisions in your hands. Don't give away your democratic right. Those in favor of binding arbitration say this is a matter of fairness. Santa Clara taxpayers through their elected offIcials have always been fair to these employees. Santa Clara Police Officers and FirefIghters rank among the highest paid public http://www .smartvoter.org/2006111 /07/ cal scl/meas/B/ 712012010 Measure B: Binding Arbitration -Santa Clara County, CA Page 4 of8 our dedicated police officers and fuefighters a fair system to settle disputes. lsi Elaine Alquist State Senator lsi Gary Niblock . President Santa Clara Firefighters IAFF Local 1171 lsi Edward C. Rose Assistant Fire Chief SCFD (ret.) lsi Lisa M. Gillmor safety employees in the Bay Area. After four years on the job police officers earn $107,076 and Firefighters earn $100,452 annually plus generous benefits and retirement. Binding arbitration is costly. Highly paid arbitrators will decide issues. The elected City Council and voters having NO say in the spending of your tax dollars. An arbitrator's award can reduce the money currently available for senior and youth programs, care of your parks, maintenance of your streets and your City library. BusinesswomanlFormer Santa Clara City Council Your NO vote will retain local control of these Member Issues. lsi Patrick Nikolai President, Santa Clara Police Officers Assoc. Rebuttal to Arguments For [There may be errors in the retyping. Contact the Registrar of Voters for the official version.] Firefighters and police officers are well paid in Santa Clara because we value their service and commitment. They are among the highest paid in their professions, have great benefits and can retire after thirty years at 90% of their salaries for life. The fire and police departments already use more than 50% of the city's operating budget. More money allocated by an arbitrator will cut into other services such as the senior center, parks and recreation, street maintenance and library. Fairness in the negotiation process is mandated by state law. In the last quarter century Santa Clara has never imposed a contract on the police and fire departments. Under the current system, fire and police employees have AL WAYS been treated fairly. When asked, fire and police cannot identify a single current issue on which they h~ve been treated unfairly. So why are they paying for this measure? To tilt an already fair negotiations process in their favor. • Don't change the City Charter and take control away from your City Council ..... . ...... VOTENOonB • Don't let three outside Arbitrators control your Police and Fire .............. . VOTENOonB • Don't jeopardize City Services .... VOTE NOonB lsi Will Kennedy Council Member, City of Santa Clara lsi Steve Lodge Police Chief, City of Santa Clara lsi Bill Gissler Former Mayor, City of Santa Clara lsi Don Von Raesfeld Former City Manager & Council Member, City of Santa Clara lsi Robert Ricks Chair, Board of Directors, Santa Clara Chamber of Commerce Rebuttal to Arguments Against [There may be errors in the retyping. Contact the Registrar of Voters for the official version.] Measure B is about providing a fair decision making process for police and firefighters. http://www.smartvoter.org/2006111/07/ca/sel/meas/B/ 7120/2010 Measure B: Binding Arbitration -Santa Clara County, CA Page 60f8 lsi Patrick Kolstad City Councilmember lsi Edward C. Rose Assistant Fire Chief SCFD (ret.) lsi Patrick Nikolai President Santa Clara Peace Officers Association lsi Gary Niblock President Santa Clara Firefighters IAPF Local 1171 Full Text of Measure B [There may be errors in the retyping. Contact the Registrar of Voters for the official version.] Article XI, Sec. 1109. Binding Arbitration for Fire and Police Department Employee Disputes (a) BINDING ARBITRATION + DECLARATION OF POLICY. It is hereby declared to be the policy of the City of Santa Clara that strikes by fire fighters and police officers are not in the public interest and should be prohibited, and that a method should be adopted for peacefully and equitably resolving disputes that might otherwise lead to such strikes. (b) PROHIBITION AGAINST STRIKES. No City of Santa Clara fire fighter or police officer shall willfully engage in a strike against the City. Any such employee against whom the City brings charges of failing to report for work as part of a strike shall be subject to dismissal from his or her employment in the event the charges are sustained upon conclusion of the proceedings that are required by law for the imposition of disciplinary action upon said employee. (c) OBLIGATION TO NEGOTIATE IN GOOD FAITH. The City of Santa Clara through its duly authorized representatives, shall negotiate in good faith with recognized employee organizations of the City of Santa Clara Fire Department and the City of Santa Clara Police Department on all matters relating to the wages, hours, and other terms and conditions of City employment, including the establishment of procedures for the resolution of disputes concerning the interpretation or application of any negotiated agreement. Unless and until agreement is reached through negotiations between the City of Santa Clara and a recognized employee organization representing Bargaining Uriit 1, which includes, but may not necessarily be limited to, the classifications of Firefighter, DriverlEngineer, Fire Captain, Fire Paramedic, Deputy Fire Marshal and Assistant Training Officer, or between the City of Santa Clara and a recognized employee organization representing Bargaining Unit 2, which includes, but may not necessarily be limited to, the classifications of Police Officer, Police Sergeant, Police Lieutenant and Police Recruit, or determinations are made through the arbitration procedure hereinafter provided, no existing benefits or conditions of employment for said fire department or police department employees shall be eliminated or changed. (d) IMPASSE RESOLUTION PROCEDURES. Notwithstanding any other provision in this Charter, all disputes or controversies pertaining to wages, hours, or terms and conditions of employment which remain unresolved after good faith negotiations between the City of Santa Clara and a recognized fire department employee organization or police department employee organization which represents the bargaining unit Classifications set http://www .smartvoter .org/2006/11 /071 calscl/meas/BI 7/20/2010 Measure B: Binding Arbitration -Santa Clara County, CA Page 70f8 forth in subsection 11 09( c) above, shall be submitted to a three-member Board of Arbitrators upon the conclusion of impasse proceedings (utilizing the impasse procedures in place on June 6, 2006) by the City and the recognized employee organization. Representatives designated by the City of Santa Clara and representatives of the recognized employee organization involved in the dispute shall each appoint one arbitrator to the Board of Arbitrators within three (3) days after either party has notified the other, in writing, that it desires to proceed to arbitration. The third member of the Arbitration Board shall be selected by agreement between the two arbitrators selected by the City and employee organization, and shall serve as the neutral arbitrator and Chairperson of the .Board. In the event that the arbitrators selected by the City and the employee organization cannot agree upon the selection of the third arbitrator within ten (10) days from the date that either party has notified the other that it has declared an impasse, then either party may request the State of California Mediation and Conciliation Service to provide a list of seven (7) persons who are qualified and experienced as labor arbitrators. Ifthe arbitrators selected by the City and the employee organization cannot agree within three (3) days after receipt of such list on one ofthe seven (7) to act as the third arbitrator, they shall alternately strike names from the list of nominees until one name remains and that person shall then become the third arbitrator and chairperson of the Arbitration Board. Any arbitration proceeding convened pursuant to this Article shall be conducted in conformance with, subject to, and governed by Title 9 of Part 3 of the California Code of Civil Procedure. The Arbitration Board shall hold public hearings, receive evidence from the parties and cause a transcript of the proceedings to be prepared. The Arbitration Board, in the exercise of its discretion, may meet privately with the parties and mediate or mede-arb issues in dispute. The Arbitration Board may also adopt such other procedures that are designed to encourage an agreement between the parties, expedite the arbitration hearing process, or reduce the costs of the arbitration process. At the conclusion of the arbitration hearings, the Arbitration Board shall direct each of the parties to submit, within such time limit as the Arbitration Board may establish, a last offer of settlement on each of the issues in dispute. The Arbitration Board shall decide each issue by majority vote by selecting whichever last offer of settlement on that issue it fmds most nearly conforms with those factors traditionally taken into consideration in the determination of wages, hours, and other terms and conditions of public and private employment, including, but not limited to, changes in the average consumer price index for goods and services, the wages, hours, and other terms and conditions of employment of other employees performing similar services, and the financial condition of the City of Santa Clara and its ability to meet the cost of the award. After reaching a decision, the Arbitration Board shall mail or otherwise deliver a true copy of its decision to the parties. The decision of the Arbitration Board shall not be publicly disclosed and shall not be binding until ten (10) days after it is delivered to the parties. During that ten day period the parties may meet privately, attempt to resolve their differences, and by mutual agreement amend or modify any of the decisions of the Arbitration Board. At the conclusion of the ten (10) day period, which may be extended by mutual agreement between the parties, the decision of the Arbitration Board, incorporating any amendments or modifications agreed to by the parties, shall be publicly disclosed and shall be binding upon the parties. The City of Santa Clara and the recognized employee organization shall take whatever action is necessary to carry out and effectuate the [mal Arbitration Board award and incorporate any amendments or modifications agreed to by the parties as provided above. The expenses of any arbitration convened pursuant to this article, including the fee for the services of the Chairperson of the Arbitration Board, shall be borne equally by the parties. All other expenses http://www .smartvoter .org/20061 11 1071 cal scl/meas/BI 712012010 Measure B: Binding Arbitration -Santa Clara County, CA Page 80f8 which the parties may incur individually are to be borne by the party incurring such expenses. Created: January 4, 2007 09:39 PST Smart Voter <http://www.smartvoter.orgl> Copyright CO League of Women Voters of Cali fomi a Education Fund htfp;lb:f}1.'wJ'>J'}I(2,grg The League of Women Voters neither supports nor opposes candidates for public office or political parties. http://www.smartvoter.orgI2006/11/07/ca/scllmeas/B/ 712012010 Measure T: Failed negotiations subject to binding arbitration -Santa Clara County, CA ATTACHMENT "C" Page 10f6 Santa Clara County, CA November 3,1998 General Measure T Failed negotiations subject to binding arbitration City of Sunnyvale Charter Amendment 15,009/49.6% Yes votes ...... 15,276/50.4% No votes Infomation shown below: I!11PClJj:jilLAn<!ly~i_s I Argurnte!1is I Eq!lText Shall the Sunnyvale City Charter be amended to provide that disputes about wages, hours and other terms and conditions of employment that cannot be resolved by negotiations between the City imd the Public Safety Officers Association and the Communications Officers Association be subject to binding arbitration which is final without City Councilor voter approval? Impartial Analysis from the City Attorney Measure T would add a section to the Sunnyvale City Charter to create a system of binding interest arbitration to resolve labor disputes between the City and the Public Safety Officers Association and Communication Officers Association. Under existing statutory law, firefighters are prohibited from striking or recognizing a picket line while performing their official duties, and police officers are similarly limited under case law. Also under existing law, the City is required to negotiate in good faith with the employee organization representing the public safety officers about wages, hours, and other terms and conditions of employment. Under existing law, when agreement is reached between the negotiating representatives, the agreement is put in writing and presented to the City Council. If matters remain in dispute and impasse is declared, the employee organization may request conciliation, and if conciliation does not resolve the impasse, advisory arbitration may be requested. If no agreement is reached and impasse procedures have been exhausted, the Council may adopt and implement the City's last best offer. Measure T alters the process for resolving labor http://www.smartvoter.org/1998nov/ca/sc1/meas/T/ Sllgg~stJlljnkl~lElJ~Q tQ_ this_contest Links to sources outside of Smart Voter are provided for information only and do not imply endorsement. 7/2012010 Measure T: Failed negotiations subject to binding arbitration -Santa Clara County, CA disputes. It provides that following good faith negotiation by the City and the labor organization, either party may declare an impasse, thereby requiring the unresolved issues to be decided through binding interest arbitration. The arbitration procedures would apply to all disputes or controversies over issues pertaining to wages, hours, terms or conditions of employment or grievances concerning the interpretation or application of a negotiated agreem'ent. If approved, this measure would require that the arbitration be conducted by a single, neutral arbitrator and conform to the California Arbitration Act (Code of Civil Procedure 1280 et seq.) If the parties don't reach agreement before arbitration hearings are concluded, the arbitrator would direct each party to submit a final settlement offer on each disputed issue. The arbitrator would take each issue and select one of the parties' last offer on that issue. Selection would be based on factors traditionally considered to determine wages, hours, benefits and other terms and conditions of employment. Factors include, but are not limited to, changes in the average consumer price index for goods and services; wages, hours, benefits and terms and conditions of employment of employees performing similar services in comparable cities; and the City's financial condition and its ability to meet the costs of the decision. Measure T provides that the arbitration decision in its final form would be publicly disclosed and binding on the parties. Prior to release of the decision, the parties would be able to meet privately to attempt to resolve their differences and would be allowed to jointly amend or modify the arbitration decision. Costs of the arbitration proceeding would be split between the City and the labor organization. The Measure states that neither the City Council nor the electorate are permitted or required to affirm or approve the decision of the arbitrator. A "yes" vote would establish binding interest arbitration. A "no" vote would retain the existing procedures. VALERIE J. ARMENTO City Attorney http://www.smartvoter.org/1998nov/ca/scl/meas/T/ Page 2 of6 712012010 Measure T: Failed negotiations subject to binding arbitration -Santa Clara County, CA Page 30f6 Arguments For Measure T Measure T is proposed by Sunnyvale police and firefighters as a fair, efficient method to settle labor disputes with the city. Currently there is no fair or equitable process toresolve such differences. Occasionally police and firefighters disagree with the city regarding safety procedures,use of equipment, work rules, or compensation. Presently our public safety officers are forced to accept whatever the city proposes. Unlike other workers, public, safetypersonnel cannot and don't want to strike, so city bureaucrats have no incentive to negotiate. If passed, Measure T will establish "binding arbitration" to resolve disagreements between public safety and the city before they become major disputes. • Measure T requires the city, police and firefighters to negotiate in good faith on work rules, grievances, wages, hours and other conditions of employment; • Measure T allows an impartial, independent arbitrator, if necessary, to study the facts and resolve disputes between the city, police and firefighters; • Measure T requires that the arbitrator's decision be based on the "interest and welfare of the public and the financial ability of the city to meet costs." The arbitrator's decision is binding on the city, police and the firefighters. • Measure T will save tax dollars. Protracted, expensive labor disputes are avoided. V oters in Santa Cruz, San Jose, Gilroy, Palo Alto, Hayward~ Vallejo, Napa, San http://www.smartvoter.org/1998nov/ca/scI/meas/T/ Arguments Against Measure T Don't be fooled by the Union's claim that this is about fairness and respect. This is a battle for control of our tax dollars. This measure is a power grab by the Union which is unnecessary, undemocratic, and puts our quality of life at risk. It's unnecessary because Sunnyvale public safety officers are among the best treated and most highly compensated officers in the entire nation. In fact, the average Sunnyvale officer receives more than $100,000 per year in total compensation and works in one of the safest cities in America. It's undemocratic because it takes decision making authority away from the City Council and gives the citizens of Sunnyvale no say in how their tax dollars are spent. Final decision making authority would be placed in the hands of non- elected third party arbiters accountable to no one. If the City Council makes poor fiscal decisions, we can vote them out of office. If a non-elected arbiter does, we're stuck with it. It puts our quality oflife at risk because we lose control over how our tax dollars are spent. If public safety costs go up because ofthe decision of a non-elected arbiter, we will be forced to make up the deficit by cutting other services. These services are parks and recreation, libraries, and street maintenance. The Union says this is about fairness and respect. It's really about money and power. Right now that power is held by elected officials accountable to the voters. If this measure passes, public accountability will be lost and citizens of Sunnyvale will no longer have a say in how their money is spent. Protect our award winning city services and our democratic right to choose. Vote 7/20/2010 Measure '1': FaIled negotiations subject to binding arbitration -Santa Clara County, CA Leandro, Santa Rosa and Petaluma have no on measure T. amended their city charters to provide similar provisions to avoid public safety disputes and to establish a fair and JIM ROBERTS equitable way to resolve labor differences. Mayor of Sunnyvale More than 13,000 Sunnyvale citizens signed petitions to place Measure T on the ANN HINES ballot. Measure T is supported by Former Director, Leadership Sunnyvale neighborhood leaders and organizations throughout our city. If Measure T is approved it would replace an unfair system THOMAS F. LEWCOCK with a much fairer one. Please vote YES Former Sunnyvale City Manager on Measure T JAMES W. DAVIS Sunnyvale Public Safety Officers Association RONSWEGLES Chair Parks & Recreation HELEN M. DeWOLF Page 40f6 Advisory Committee for a New Sunnyvale JOSEPH F. CALA Business Owner TONY SPIT ALERI Firefighter SUSAN CAROL CALDWELL Homemaker Sr Center Text for Measure T If Measure T carries, the Charter shall be amended by adding Section 1110 to read as follows: Section 1110. Impartial And Binding Arbitration For Public Safety Department Employee Disputes. A. Declaration of Policy. It is hereby declared to be the policy of the City of Sunnyvale that strikes by public safety employees (employees in the Sunnyvale Public Safety Department assigned to fire suppression and law enforcement duties, including those dispatching them to assigned calls and other emergency situations) are not in the public interest and should be prohibited, and that a method should be adopted for peacefully and equitably resolving disputes that might otherwise lead to such strikes. B. Prohibition Against Strikes. No City public safety employee as defined above, or employee union, association, or organization representing same, shall strike, slow down, http://www .smartvoter.orgI199 8nov Ica! scl/meas/T I 7120/2010 Measure T: Failed negotiations subject to binding arbitration -Santa Clara County, CA Page 5 of6 sick out or engage in such concerted economic activity against the City. Disputes unresolved by negotiations shall be resolved by the procedure set forth herein. Any such employee who fails to report to work without good cause or who aids, abets or encourages strikes, slow downs or sickouts against the city shall be subject to disciplinary action, including, but not limited to, termination from City employment, subject to the provisions of this Charter, the City's Personnel Rules and Regulations and lawful procedures. C. Obligations to Negotiate in Good Faith. The City, through its duly authorized representatives, shall negotiate in good faith with any employee organization that is recognized by the City as the representative of a representation unit or representation units comprised solely of public safety employees as defined above, as such units are currently constituted or as they may be amended through negotiation or arbitration as provided in this section, on all matters relating to the wages, hours, and other terms and conditions of City employment, including the establishment of procedures for the resolution of grievances concerning the interpretation or application of any negotiated agreement that includes a provision for binding arbitration ofthose grievances. Unless and until agreement is reached through negotiations between authorized representatives of the city and said employee organization or a determination is made through the impartial procedure hereinafter provided, no existing benefit, term or condition of employment for the public safety employment employees represented by said employee organization shall be altered, eliminated or changed. D. Impasse Resolution Procedures. 1. All disputes or controversies pertaining to wages, hours or terms and conditions of employment which remain unresolved after good faith negotiations between the City and said employee organization shall be submitted to an independent, neutral Arbitrator upon the declaration of an impasse by the City or by said employee organization. 2. The City and employee organization will attempt to reach agreement as to the neutral Arbitrator; In the event that the City and the employee organization cannot agree upon the selection of the neutral arbitrator within ten (10) days from the date that either party has notified the other that it has declared an impasse, either party may then request the State Mediation and Conciliation Service of the State of California-Department of Industrial Relations (or a neutral replacement if same ceases to exist) to provide a list of seven (7) persons to act as the neutral arbitrator. If they still cannot agree as to the neutral arbitrator, they shall alternately strike names from the list of nominees until one name remains, and that person shall then become the neutral Arbitrator; The first party to strike shall be determined by lot. 3. Any arbitration proceeding convened pursuant to this Article shall be conducted in conformance with, subject to, and governed by Title 9 of Part 3 of the California Code of Civil Procedure (CCP 1280 et seq.), as the same exists as of January 1, 1998. The Arbitrator shall hold hearings, receive evidence from the parties, and cause a transcript ofthe proceedings to be prepared. The Arbitrator, in the exercise of hislher discretion, may meet privately with the parties and mediate the issues in dispute. The Arbitrator may also adopt such other procedures that are designated to encourage an agreement between the parties, expedite the arbitration hearing http://www.smartvoter.org/1998nov/ca/scl/meas/T/ 7/20/2010 Measure T: Failed negotiations subject to binding arbitration -Santa Clara County, CA Page 6 of6 process, or reduce the costs of the arbitration process. 4. In the event no agreement is reached prior to the conclusion of the arbitration hearings, the Arbitrator shall direct each of the parties to submit, within such time limit as he/she may establish, a last offer of settlement on each of the remaining issues in dispute. The Arbitrator shall then decide each issue by selecting whichever last best offer of settlement on that issue he/she finds most nearly conforms to those factors traditionally taken into consideration in the determination of wages, hours, benefits and terms and conditions of public and private employment, including, but not limited to the following: changes in the average consumer price index for goods and services; the wages,hours, benefits and terms and conditions of employment of employees performing similar services in comparable cities of similar population; and the financial condition of the City of Sunnyvale and its ability to meet the costs of the decision of the Arbitrator. 5. After reaching a decision, the Arbitrator shall mail or otherwise deliver a true copy of hislher decision to the parties. The decision of the Arbitrator shall not be publicly disclosed and shall not be binding until ten (10) days after it is delivered to the parties. During that ten (10) day period, the parties shall meet privately, attempt to resolve their differences, and by mutual agreement amend or modify the decision of the Arbitrator. At the conclusion of the ten (10) period, which may be extended by mutual agreement between the parties, the decision of the Arbitrator, as it may be modified or amended by the parties, shall be publicly disclosed and shall be binding on the parties. The City and the employee organization shall take whatever action is necessary to carry out and effectuate the arbitration award. No other actions by the City Councilor by the electorate to confirm or approve the decision of the Arbitrator shall be permitted or required. 6. The expense of any arbitration proceeding convened pursuant to this Article, incl uding the fee for the services of the Arbitrator and the costs of preparation of the transcript of the proceedings, shall be borne equally by the parties. All other expenses which the parties may incur individually are to be borne by the partyincurring such expenses. 7. The provisions of this Section shall not be construed as making any of the provisions of Section 923 of the Labor Code of the State of California applicable to City public safety employees. The provisions of this Section pertaining to arbitration shall be. construed as an "arbitration agreement" for the purpose of making applicable to the extent not in conflict herewith the provisions of California Code of Civil Procedure Sections 1280, et seq., described above. S<tj1taCI(ira Home P<ige II St;ltewide Links II Abollt Smart Voter II feedback Created: February 16, 1999 18:55 Smart Voter '98 <http://www.smartvoter.org/> Copyright © 1998 League of Women Voters of California Education Fund The League of Women Voters neither supports nor opposes candidates/or public office or political parties. http://www.smartvoter.orgI1998nov/ca/sc1/meas/T/ 7/2012010 change. The report is attached. The County estimated that an election in 2012 would cost the City approximately $111,000, while an election in 2011 would cost between $136,313 and $268,755, depending on the number of items on the ballot. As a result, staff estimates that the change. would save the city between $26,313 and $157,755 per council election . . The County has also stated that there would be a·$20,000 "start-up" fee to change the council election dates in its election management system. RECOMMENDATION If the Council wishes to submit the Charter Amendment to the voters on November 2, 2010, they must adopt the attached Resolution Calling a Special Election at this meeting in order to meet the requirements in the Election Code for submittal by the City Clerk a certified copy to the Registrar of Voters no later than Friday, August 6, 2010. This resolution also sets the election date and deadlines for ballot arguments and requests the County's serVices in conducting the election . . RESOURCE IMPACT The Registrar of Voters has stated that any additional measure (after the first measure, which. will cost approximately $163,780) to be submitted for the election of November 2, 2010 would cost the City approximately $100,000. Attachments: A. Impact Analysis/Cost Effectiveness Report from Registrar of Voters B. Resolution Attachment A IMP ACT ANAL YSIS/COST EFFECTIVENESS REPORT On Changing the Election of Council Members for the City of Palo Alto from Odd-Year to Even-Year General Elections Prepared by the Registrar of Voters -July 2010 The City of Palo Alto, which has about 36,000 registered voters, currently participates in an odd-numbered year election. The city wants to reduce future election costs by moving to an even-numbered year general election. . If the change is approved, the City of Palo Alto will experience significant savings in future even-year elections. The ROV estimates that the city's share of the November 2011 UDEL Election, can cost between $136,000 up to $269,000 depending on the number of jurisdictions actually participating and sharing in that election. The same contest in the November 2012 General Election would cost approximately $111,000, which includes the cost of an additional ballot card as discussed in the last paragraph of the next page. The reason for the City of Palo Alto's higher cost to hold odd-year elections is that sometimes it has to assume the full cost of a ballot type in an odd-year election. Normally, other jurisdictions, such as Palo Alto Unified School District, Los Altos School District, and Foothill De Anza Community College and other special districts, who share some of the same pool of voters or ballot type with the City of Palo Alto, participate and share in the cost of odd-year elections with the city. However, sometimes, one or more ofthese jurisdictions do not have sufficient nominees to go to election. Therefore, the remaining jurisdiction that goes to election will have to assume the full cost of a ballot type. The total cost of conducting an odd-numbered year election is allocated to a smaller number of participating jurisdictions. Thus, the amount chargeable to each jurisdiction in an odd-numbered year election is usually much higher than the amount chargeable in an even-numbered year statewide election. There are many jurisdictions participating in an even-numbered year statewide election. Multiple jurisdictions -federal, state, county, city, school and special districts -share the cost of elections. The portion attributable to federal, state and county, which amounts to approximately 70% of the total cost of an even-numbered year election, is absorbed by the county. Thus, the amount chargeable to each local jurisdiction, i.e. cities, schools and special districts -are much lower in an even-numbered year election compared to an odd- numbered year election. 7/2612010 1 In May 2007, the Saratoga Fire District moved their elections from odd-years to even- years, followed by the City of Los Altos in May 2008, City of Gilroy in January 2009 and the Cupertino Sanitary District in May 2010. Loss of another jurisdiction in odd-year elections changes the allocation of the total election cost by reducing the aggregate registered voter base used for allocation. If the City "of Palo Alto were to move its elections from odd-years to even-years, the local jurisdictions remaining in the odd-year elections, namely the cities of Cupertino and Sunnyvale, Foothill-De Anza Community College, six (6) school districts and seven (7) special districts will realize an increase in their share of the cost of elections. Moving the election date from an odd-numbered year to an even-numbered year also results in an additional year added to each incumbent's tenn; The term of office of the Council members whose term will expire in November 2011 will be continued until the general election is held in November 2012; likewise, the term of office of the Council members whose term will expire in November 2013 will be continued until the general election is held in November 2014. Moving a city of this size would have a significant impact on the Registrar of Voters' (ROV) election systems, including the ballot layout, voting, ballot counting and election reporting systems. There would be an increase in the number of ballot types and possibly ballot cards. The·City of Palo Alto elects nine (9) city council members at-large and pulls their own alphabet for candidate name rotation on the ballot. For the November 2009 election, five(5) council members were elected, there were" fourteen (14) candidates and five (5) write-in spaces on the ballot, which took up one column of the optical scan ballot. If the city were to move to even-year elections, it will increase the length of even- year election ballots and could cause an additional ballot card for the city's voters. The cost of an additional ballot card is approximately $18,000 which will be added to the city's election cost. ·7/26/2010 2 SANTA CLARA COUNTY REGISTRAR OF VOTERS COMPARATIVE ESTIMATED COSTS OF ELECTIONS FOR CITY OF PALO ALTO c/o Donna Grider, (650) 329-2226, donna.grider@CityofPaloAlto.org DATA Registration as of 5/20/10 ProjeCted Registration 35,834 39,417 ACTUAL COST ESTIMATED COSTS -----_ -UDELNOV2011 r ---------nul rn --_n_ UDELNOV2009> Low End I High End 1 I GENERAL NOV 20121 COMPUTATION Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost (a) Base charge Initialls$ue $ 3.80 $ 136,313 $ 3.80 $ 136,313 $ 7.50 $ 268,755 $ 1.35 $ 53,213 (b) Absentee Voter Charge Initial Issue $ 0.50 $ 19,709 (c) Shared Printing Costs Initial Issue $ 0.50 ~709 Estimated cost of election $ 3.80 $ 136,313 $ 3.80 $ 136,313 $ 7.50 $ 268,755 $ 2.35 $ 92,631 Add: Cost of extra ballot card due to length of ballot ~OOO Total Election Cost Charged to City $ 136,313 $ 136,313 $ 268,755 $ 110,631 Estimated Cost of Candidate Statements (Paid by candidates) $ -1,635$ 22,887 (14 cand) $ 25,424 (14 cand) $ 25,424 (14 cand) $ 25,424 Total $ 159;200 $ 161,737 $ 294,179 $ 136,055 NOTES: November 2012 is the earliest General Election year the district can participate in, if the change of election year pushed through. To change the election date from November of odd years to November of even years, the district will be charged a one-time cost of approximately $20,000 to process the changes in the election information management systems. COSTS FOR 2011 AND 2012 ARE ESTIMATES ONLY. SUBJECT TO CHANGE WITHOUT NOnCE. Prepared by: Carolina Gomez Accountant III (408) 282-3012 City of Palo Alto -2012 VL2.xls 7/26/20109:49 AM * * * NOT YET APPROVED * * * ATTACHMENT 8 Resolution No. Resolution of the Council of the City of Palo Alto Calling a Special Election for November 2, 2010 Submitting to the Electorate for Special Election a Measure to Amend Article III, Section 3 of the Charter to Change City Council Elections to Even-Numbered Years and Extend the Terms of Current Council Members to Five Years WHEREAS, Article IX , section 1 of the Charter of the City of Palo Alto authorizes the City Council to propose and submit Charter amendments to the voters of the City for appr()val at any established municipal election date; and WHEREAS, over the past three years, the City has faced budget challenges and has extensively examined ways to reduce costs in all areas of City operations; and WHEREAS, expenses to the City for election costs to place local measures on the ballot in odd-numbered years are generally higher than they would be in even-numbered years because costs for local measures are reduced when they coincide with countywide and statewide general elections, which occur in even-numbered years; and WHEREAS, the City Council wishes to propose a Charter Amendment to change council election years from odd-numbered years to ,even-numbered years in order to help reduce election costs to the City; and WHEREAS, the proposed Charter amendment also proposes extending the terms of current council members by one year in order to implement the proposed change to even- numbered years, as the Council has determined that the most practical transition is to allow current Council Members to continue in their offices until their successors are elected and qualified in an even-numbered year, so that the terms of Council Members would be extended from 2011 to 2012, and the terms of Council Members __ would be extended from 2013 to 2014; and WHEREAS, elections will be held on November 2, 2010, in certain school districts and certain special districts in Santa Clara County; and WHEREAS, pursuant to Education Code section 5342 and Part 3 of Division 10 of the Elections Code commencing at section 10400, such elections may be partially or completely consolidated. NOW, THEREFORE, the City Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Special Election. Pursuant to Elections Code sections 1405 and 9255 there is called and ordered to be held in the City of Palo Alto, California, on Tuesday, November 2, 2010 a special municipal election. Pursuant to Article IX of the Charter of the City of Palo Alto, this Council orders the following question to be submitted to the voters at the Election: 100727 sh 8261377 1 * * * NOT YET APPROVED * * * CITY OF PALO ALTO MEASURE __ _ To consolidate with county and State elections. and help reduce the City's election costs, shall Article III, section 3 of the Palo Alto City Charter be amended to change the City's general municipal elections to each even-numbered year, with the next election scheduled for 2012, and to extend the terms of all current council members by one year in order to complete the transition to even-numbered year elections? For the Amendment Against the Amendment SECTION 2. Adoption of Measure. If a majority of qualified electors voting on such measure shall vote in favor of City of Palo Alto Measure "_", the amendment to Article II, Section 3 of the Charter shall be deemed ratified and shall read as follows: Section 3. Time of Election A regular election shall be held in the city of Palo Alto on the first Tuesday after the first Monday in November of each even-numbered year, commencing with the year 2012,and the same shall be known as the general municipal election. All other municipal elections that may be called under the authority of this charter, or by the general laws, shall be known as special elections . . Notwithstanding four-year city council member term limit set forth in Article III, section 2 of this charter, any city council members whose term of office would have expired prior to 2012 shall continue in their offices until December 31, 2012 or until their successors are elected and qualified. Notwithstanding four-year city council member term limit set forth in Article III, section 2 of this charter, any city council members whose term of office would have expired prior to 2014 shall continue in their offices until December 31,2014, or their successors are elected and qualified. SECTION 3. Notice of Election. Notice of the time and place of holding the election is hereby given, and the .City Clerk is authorized, instructed and directed to give further or additional notice of the election in time, form, and manner as required by law. SECTION 4. Impartial Analysis. Pursuant to California Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the ,City Clerk on or before August 17, 2010. II 100727 sh8261377 2 * * * NOT YET APPROVED * * * SECTION 5: Ballot Arguments. Pursuant to Elections Code section 9286 et seq., August 10,2010 at 5:30 p.m. shall be the deadline for submission of arguments in favor of, and arguments against, any local measures on the ballot. If more than one argument for and/or against is received, the priorities established by Elections Code section 9287 shall control. SECTION 6. Rebuttal Arguments. The provisions of Elections Code section 9285 shall control· the submission of any rebuttal arguments. The deadline for filing rebuttal arguments shall be August 17,2010. SECTION 7. Consolidation Reguest. The Council of the City of Palo Alto requests the Governing Body of any such other political subdivision, or any officers otherwise authorized by law, to partially or completely consolidate such elections and to further provide that the canvass be made by any body or official authorized by law to canvass the returns of the election, except that in accordance with Article III, section 4, of the Palo Alto Charter, the City Council must meet and declare the results of said elections; and that this City Council consents to such consolidation. SECTION 8. Request for County Services. Pursuant to section 10002 of the California Elections Code, the Council of the City of Palo Alto hereby -requests the Board of . Supervisors of Santa Clara County to permit the Registrar of Voters to render services to the City of Palo Alto relating to the conduct of Palo Alto's General Municipal and Special Elections which are called to be held on Tuesday, November 2, 2010. The services shall be of the type normally performed by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections including, but not limited to, checking registrations, mailing ballots, hiring election officers and arranging for polling places, receiving absent voter ballot applications, mailing and receiving absent voter ballots and opening and counting same, providing and distributing election supplies, and furnishing voting machines. Subject to approval of the Board of Supervisors of Santa Clara County of the foregoing request, the· City Clerk is hereby authorized to engage the services of the Registrar of Voters of the County of Santa Clara to aid in the conduct of said elections including canvassing the returns of said election. Further, the Director of Administrative Services is authorized and directed to pay the cost of said services provided that no payment shall be made for services which the Registrar of Voters is otherwise required by law to perform. SECTION 9. Transmittal of Resolution. The City Clerk is directed to submit a certified copy of this re~olution to the Board of Supervisors of the County of Santa Clara and to the Registrar of Voters. II II II II 100727 sh 8261377 3 * * * NOT YET APPROVED * * * /' SECTION 10. Exemption from CEQA.The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT:. ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Administrative Services 100727 sh 8261377 4 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE: AUGUST 2,2010 REPORT TYPE: PUBLIC HEARING CMR: 325:10 SUBJECT: TEFRA Hearing Regarding Conduit Financing for the Keys Family Day School Project Located at 3981 El Camino Real and 2890 Middlefield Road, Palo Alto, and Approving the Issuance of Revenue Bonds by the California Municipal Finance Authority for the Purpose of Financing and/or Refinancing the Acquisition, Construction, Improvement and Equipping of Educational Facilities and Certain Other Matters Relating Thereto for the Benefit of Keys Family Day School, Inc. RECOMMENDATION 1) Conduct a public hearing under the requirements of the Tax Equity and Fiscal Responsibility Act of 1983 (TEFRA) and the Internal Revenue Code of 1986, as amended (Code); and 2) Adopt a resolution (Attachment A) approving the issuance of the bonds by the California Municipal Finance Authority (CMFA) for the benefit of Keys Fnmily Day School, Inc. (BolTower) in financing Keys Family Day School. BACKGROUND Keys Fnmily Day School, Inc. (Keys) requested that the CMFA serve as the municipal iSl.'Uer of bonds for the Keys Family Day School project in an aggregate principal nmount not to exceed $20,000,000 of tax exempt revenue bonds. Proceeds from the issuance of the bonds will be used to: (i) fund the demolition of an existing facility and the construction and equipping of one or more new buildings to be used as educational facilities on the Corporation's property located at 3981 El Camino Real, Palo Alto, California (the "EI Cnmino Cnmpus"), including furniture, fixtures and equipment and design, architectural, engineering, project management, project consultants and other similar expenses relating thereto, (ii) fund cCltain other capital expenditures, renovations, equipment and relocation expenditures at the EI Cnmino Cnmpus and the Corporation's property located at 2890 Middlefield Road, Palo Alto, California (the "Middlefield Cnmpus"); (iii) refmance an existing bank loan used to acquire and improve the EI CMR:325:1O Page I of4 Camino Campus; and (iv) pay other expenses related to the issuance of the Bonds, including but not limited to funding a de bt service reserve fund, costs of issuance, and capitalized interest (collectively, the "Project"). The Project will be owned and operated by the Corporation. In order for all or a portion of the bonds to qualify as tax-exempt bonds, the City of Palo Alto must conduct a public hearing (TEFRA Hearing), providing the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the project. Prior to the hearing, reasonable notice must be provided to the members of the community. Following the close ofthe TEFRA hearing, an "applicable elected representative" of the governmental unit hosting the proposed project must provide its approval of the issuance of the bonds for the financing of the project. DISCUSSION Since the facilities to be financed with the proceeds of the CMFA's debt are located within the jurisdiction of the City of Palo Alto, the City has been asked to conduct a TEFRA hearing and adopt a resolution (Attachment A) that approves both the issuance of bonds by the CMFA for the benefit of Keys. A TEFRA hearing was held August 8, 2010 and a resolution was approved by the Council, however the TEFRA approval is only valid for one year, which is why the Council is being asked to reapprove the financing. The previous TEFRA authorized issuance was for sale of unrated tax-exempt bonds to investors. In the fall of 2008 the unrated school bond market collapsed, which left the school unable to complete a bond offering. Despite the bad economic conditions, Keys was able to secure additional capital campaign funds and a construction bank loan that allowed it to proceed with construction of the new campus. Now that the construction risk is over, and given the favorable bank-qualified-bond stimulus incentives for financial institutions to support such community development projects, Keys has received multiple term sheets. from financial institutions interested in a direct placement of such bonds. Keys is therefore highly confident that it will be able to complete the issuance well within the one-year deadline. As cited in the published notice of July 19,2010, the public hearing is simply an opportunity for all interested persons to speak or to submit written comments concerning the proposal to issue the debt and the nature or location of the facility to be financed; however there is no formal obligation on the part of the borrower or the Council to respond to any specific comments made during the hearing or submitted in writing. The financing includes, but is not limited to finance the acquisition, construction, improvement and equipping of educational facilities and certain other matters relating thereto located at 3981 EI Camino Real And 2890 Middlefield Road, Palo Alto. The CMF A is a joint exercise of powers authority that the City became a member of on April 14, 2008. The Joint Exercise of Powers Agreement provides that the CMFA is a public entity, separate and apart from each member executing such agreement. The debts, liabilities and obligations of the CMFA do not constitute debts, liabilities or obligations of the members executing such agreement. The bonds to be issued by the CMFA for the project will be the sole responsibility of the borrower, and the City of Palo Alto will have no financial, legal, moral CMR:325:10 Page2of4 obligation, liability or responsibility for the projeet or the repayment of the bonds for the financing of the projeet. All finaneing documents with respect to the issuance of the bonds will contain dcar diselaimcrs that the bonds are not obligations of the City of Palo Alto or the State of California but are to be paid for solely from funds provided by the borrower. The City in no way will become exposed to any financial liability by reason of its membership in the CMFA. In addition, participation by the City in the CMFA does not impact the City's appropriations limits and will not constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing, adopting the required resolution, no other participation or activity of the City or the City Council with respeet to the issuance ofthe bonds will be required. Based on the benefits of the project to the Palo Alto community and the lack of any financial obligations on the part of the City, staff recommends that Council approve the attached resolution. RESOURCE IMPACT As stated, the City will incur no financial obligation from approval of the recommendations. Keys Family Day School, Inc. is requesting authority to issue up to $20 million in bonds through the CMF A. The City will receive a fee for its services when the bonds are issued. The City would receive approximately $8,300 ifthe par amount of the bonds issued is $20 million. POLICY IMPLICATIONS Actions recommended in this report are consistent with Council's prior actions in supporting non-profit financings under the TEFRA (e.g., approving tax-exempt financing through the California Municipal Finance Authority for the Gideon Hausner Jewish Day School projects, CMR: 184:08). ENVIRONMENTAL REVIEW Action on this item does not constitute a project under Section 21065 of the Public Resources Code. PREPARED BY: y Director, dministrative Services DEPARTMENT HEAD APPROVAL:_-L1lli~~~t-._=:::::===-- LAL . \1"\. :ir~tor, ;dmirove. Services CITY MANAGER APPROV AL: _'-:---t1~-=---::-~-:-::c-:=-==:=::-:=-_---''---=--_-'-_ JAMES KEENE Y City Manager CMR:325:10 Page 3 of4 ATTACHMENTS Attachment A: Resolution of the Council of the City of Palo Alto Approving the Issuance of the California Municipal Finance Authority Revenue Bonds, Series 2010 in an Aggregate Principal Amount Not to Exceed $20,000,000 for the Purpose of Financing and/or Refinancing thc Acquisition, Construction, Improvement and Equipping of Educational Facilities For the Keys Family Day School CMR:325:1O Page 4 of 4 AITACHMENT A Not Yet Approved Resolution No. Resolution of the Council of the City of Palo Alto Approving the Issuance of the California Municipal Finance Authority Revenue Bonds, Series 2010 in an Aggregate Principal Amount Not to Exceed $20,000,000 for the Purpose of Financing and/or Refinancing the Acquisition, Construction, Improvement and Equipping of Educational Facilities For the Keys Family Day School WHEREAS, Keys Family Day School, Inc. (the "Corporation"), a nonprofit public benefit corporation and an organization described in Section 501 (c)(3) of the Internal Revenue Code of 1986 (the "Corporation"), has requested that the California Municipal Finance Authority (the "Authority") participate in the issuance of one or more series of revenue bonds in an aggregate principal amount not to exceed $20,000,000 (the "Bonds") for the Purpose of Financing and/or Refinancing the Acquisition, Construction, Improvement and Equipping of Educational Facilities and Certain Other Matters Relating Thereto (the "Project") to be owned and operated by the Corporation and located within the City of Palo Alto (the "City"); and WHEREAS, pursuant to Section l47(f) of the Internal Revenue Code of 1986 (the "Code"), the issuance of the Bonds by the Authority must be approved by the City because the Project is located within the territorial limits of the City; and WHEREAS, the City Council of the City (the "City Council") is the elected legislative body of the City and is one of the "applicable elected representatives" required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January I, 2004 (the "Agreement"), among certain local agencies, including the City; and WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Palo Alto as follows: SECTION 1. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. 100715 jb 0130611 Not Yet Approved SECTION 2. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and t6 execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. SECTION 3. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to construct the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the construction or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. SECTION 4. This resolution shall take effect immediately upon its adoption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Assistant City Attorney City Manager or Designee Director of Administrative Services 100715jb 0130611 2 now been completed. Property owners were notified the third week in December 2009 that weeds were to be abated by April 30, 2010, either by the owners orbythe County. If the property owners chose to have the County abate the weeds, the abatement charges would be levied against the respective properties as an assessment by the County Assessor. The County has since informed the property owners of the costs for destroying and removing the weeds. The Fire Department has published the required notice of this hearing in the Palo Alto Weekly. The cost report by the County Weed Abatement Division has been posted on the City Hall Plaza bulletin board for ten days prior to this hearing. DISCUSSION Property Owners may object to the charges for weed abatement being levied against their properties. The charge consists of the contractor's cost plus 15 ° percent administrative charges, in accordance with Palo Alto's contract with Santa Clara county (CMR 357:00, September 18,2000). A representative from the County Weed Abatement Division will be present at the public hearing with . the records of weed abatement that have taken place. Should there be any modifications in the proposed assessments as a result of the hearing, changes in the assessment spread will be made as necessary. After any recalculations are completed, and Council adopts the attached resolution confirming the abatements and ordering those costs to be imposed as liens on the abated properties, the assessments will be submitted to the County Assessor for entry on the October tax roll upon which general City taxes are to be collected. RESOURCE IMPACT There is no direct fiscal impact of this action to the City. The assessments identified on Exhibit A, totaling $8,632.30, will be imposed as liens on the properties listed and will not be borne by the City. POLICY IMPLICATIONS CMR: Page 2 of NOT YET APPROVED SECTION 4. Santa Clara County has determined the weed abatement program to be categorically exempt from CEQA pursuant to CEQA Guidelines Section 15308. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Administrative Services Fire Chief 100722 sh 8261361 2 " I 2010 Weed Abatement Program Exhibit A Assessment Report City of Palo Alto TAX ROLL Situs APN OWNER ADDRESS AMT IRA 1 733 Ramona 120-27-063 Koda, Ross K Trustee POBox 156 SOUTH DOS PALOS 93665 $899.85 6001 2 2021 Webster 124-03-070 Kushlan, Michael C & Heather T 769 Garland Dr PALO ALTO 94303-3604 $298.00 6001 3 2030 Park 124-27-002 Kofi, Tetteh A 464 Spruce St BERKELEY 94708-1223 $428.50 6001 4 3101 Middlefield 127-53-007 Fisher Lie 178 Ely PI PALO ALTO 94306-4552 $428.50 6001 5 3085 Middlefield 127-53-008 Boreieh Group Lie 644 Menlo Av 202 MENLO PARK 94025 $298.00 6001 6 3370 Park 132-33-049 Kumano, Tadahiko 3370ParkBl PALO ALTO 94306-2847 $428.50 6001 7 Lambert 132-33-050 LINDA ALLEN 1700 SPACE PARK DR. SANTA CLARA 95054 $857.00 6001 8 405 Curtner 132-41-072 . Ellis, Bess Trustee Etal 6223 Franciscan Wy SAN JOSE 95120-4420 $298.00 6001 9 4073 El Camino Real 132-46-107 Quan Jason Vi & Ha Phuong Yen 4073 El Camino Real PALO ALTO 94306-4002 $428.50 6001 10 3606 EI Camino Real 137-08-080 Camino Real Development Lie P.o. Box 60177 PALOALTO' 94306 $298.00 6022 11 3700 El Camino Real 137-11-078 Kss Investment Lie 1380 Miravalle Av LOS ALTOS 94024-5744 $298.00 6022 12 4031 Amaranta 137-21-034 Hamlett, Mildred . 4031 Amaranta Av PALO ALTO 94306-3103 $298.00 6022 13 3460 Hillview 142-16-059 Leland Stanford Jr Univ The Bd 3155 Porter Dr PALO ALTO 94304 $298.00 6055 14 4247 Manuela 175-02-051 Weakland, John H & Anna W 4245 Manuela Ct PALO ALTO 94306-3731 $298.00 6001 15 4243 Manuela 175-02-053 Weakland, Anna Wu Trustee Etal 4243 Manuela Ct PALO ALTO 94306-3731 $298.00 6001 16 4103 Old Trace 175-20-078 Smithwick, AltonD & UrsulaL Po Box 60065 PALO ALTO 94306 $1,585.45 6020 17 890 . Mockingbird 175-20-082 Colbert, James L & Marie K Truste~ 1825 Fardon Av LOS ALTOS 94024 $298.00 6020 ) 18 910 Mockingbird 175-20-084 SelkerEdwin J & Shay Ellen M 910 Mockingbird Ln PALO ALTO 94306-3719 $298.00 6020 19 Old Adobe 175-20-092 Grove, Andrew S & Eva R Trustee 171 Main St #278 LOS ALTOS 94022 $298.00 6020 TOTAL $8,632.30 .. Report Date: 7/12/2010 (List Sorted by APN) Page 1 " TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: CITY MANAGER DATE: AUGUST 2, 2010 CMR: 310:10 REPORT TYPE: ACTION SUBJECT: Report from High Speed Rail Standing Committee on Recent Activity and Request for Authorization for the City Manager to Enter Into a Contract with Hatch Mott and McDonald in an Amount Not to Exceed $120,000 for On-Call Engineering Services Related to High Speed Rail RECOMMENDATION Staff recommends that the Council authorize the City Manager to complete and execute the following contract for services related to high speed rail with substantially the same scope of service attached to this report as Exhibit A: (1) Contract with Hatch Mott and McDonald in an amount not to exceed $120,000 for on-call .. . engmeenng servIces. BACKGROUND AND DISCUSSION The City recently engaged the services of Hatch Mott and MacDonald (HMM), a full service professional engineering services firm to provide a Peer Review of the California High Speed Rail Project Alternatives Analysis for the San Francisco to San Jose Segment. This work was recently completed and the City filed its response including the HMM Peer Review analysis to California High Speed Rail Authority Alternatives Analysis June 30, 2010. Staff anticipates that the City may require consultant services over the next year (through June 30, 2011) for HSR issues that arise involving or requiring engineering analysis or expertise. The total cost for this contract would not exceed $60,000 for peer review of the supplemental analysis report. If the city seeks to engage HMM for the full DEIR, this amount is projected to increase to $120,000. These are preliminary figures based on current information. , The proposed scope of service for the contract is attached. CMR: 310:10 Page 1 of2 EXHIBIT "A" SCOPE OF SERVICES Hatch Mott MacDonald Attachment A Professional Services for California High Speed Rail On-Call Engineering Services Introduction The City of Palo Alto is actively participating in the implementation of the California High Speed Rail Project (CAHSR) since the passage of Proposition 1A in November 2008. Because CAHSR is proposed to utilize the existing Caltrain right-of-way owned collectively by the Joint Powers Board (JPB), the project has the potential to profoundly change the character and quality of the community. ' The City of Palo Alto also recognizes the statewide importance of CAHSR in providing a sustainable alternate transportation. CAHSR has the potential, if done correctlY, to benefit and enhance Palo Alto. The Palo Alto City Council has formed a High Speed Rail Subcommittee comprised of four Council Members appointed by the Mayor. The City Council has also adopted a set of guiding principles which provide direction to the subcommittee when advocating various City positions. Scope of Services Engineering On-Call Services The consultant may be called on to provide on-call engineering professional consulting services for the City of Palo Alto related to the California High Speed Rail Project (CAHSR). These services could relate to the future anticipated Supplemental Alternatives Analysis and Draft Environmental Impact Report (DEIR) projected to be published in December of 2010 or January 2011. There may be additional technical documents published by the CAHSR Authority in which the City of Palo may want to engage the consultant to provide peer review engineering services. Meetings The consultant may from time to time be required to meet with City of Palo Alto City Council, Committees, Board and Commission as well as community groups. The purpose of these meetings will be to provide status reports and to receive direction. = the voting delegate card at the Votingb~l~giteDesk. 'This will enable them to receive the special sticker on their name badg~s J~~..,-iU":a.c4nit t:I,em into the voting area during the Business Meeting. .... .~ .... "' I ". ~.~' • Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting . delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the Business Meeting, they may not transfer the voting card to another city official. • Seating Protocol during General Assembly. At the Business Meeting, individuals with the voting card will sit in a separate area. Admission to this area will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate. If the voting delegate and alternates wish to sit together, they must sign in at the Voting Delegate Desk and obtain the special sticker on their badges. The Voting Delegate Desk, located in the conference registration area ofthe San Jose Convention . Center, will be open at the following times: Wednesday, September 15, 9:00 a.m.; Thursday, September 16, 7:30 a.m.; and September i 7, 7:30 a.m. The Voting Delegate Desk will also be open at the Business Meeting on Friday, but not during a roll call vote, should one be undertaken. The voting procedures that will be used at the conference are attached to this memo. Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city's voting delegate and alternates. Once again, thank you for completing the voting delegate and alternate form and returning it to the League office by Friday, August 20th. If you have questions, please call Mary McCullough at (916) 658-8247. . Attachments: • 2010 Annual Conference Voting Procedures • Voting Delegate/Alternate Form I. INFORMATION AND PROCEDURES RESOLUTIONS CONTAINED IN THIS PACKET: The League bylaws provide that resolutions shall be referred by the president to an appropriate policy committee forreview and recommendation. Resolutions with committee recommendations shall then be considered by the General Resolutions Committee at the Annual Conference. This year, six resolutions have been introduced for consideration by the Annual Conference and referred to .' the League policy committees. Please note that two resolutions have been referred to more than one policy committee for consideration. POLICY COMMITTEES: Six policy committees will meet at the Annual Conference to consider and take action on resolutions referred to them. These are: Administrative Services; Community Services; Environmental Quality; Housing, Community & Economic Development; Revenue and Taxation; and Transportation, Communication & Public Works. These committees will meet on Wednesday, September 15, 201 Oat the Hilton Bayfront Hotel, located next to the San Diego Convention Center. Please see page iii for the policy committee meeting schedule. The sponsors of the resolutions have been notified of the time and location of the meetings. Two policy committees will not be meeting at the annual conference. These committees are: Employee Relations and Public Safety. GENERAL RESOLUTIONS COMMITTEE: This committee will meet at 4:00 p.m. on Thursday, September 16, at the San Diego Convention Center, Ballroom 20n, to consider the reports of the six policy committees regarding the six resolutions. This committee includes one representative from each of the League's regional divisions, functional departments and standing policy committees, as well as other individuals appointed by the League president. ANNUAL BUSINESS MEETING/GENERAL ASSEMBLY: This meeting will be held at 3 :00 p.m. on Friday, September 17; at the San Diego Convention Center, Ballroom 20ABC. PETITIONED RESOLUTIONS: For those issues that develop after the norma160-day deadline, a resolution may be introduced at the Annual Conference with a petition signed by designated voting delegates of 10 percent of all member cities (48 valid signatures required) and presented to the Voting Delegates Desk at least 24 hours prior to the time set for convening the Annual Business Session of the -General Assembly. This year, that deadline is 3:00 p.m., Thursday, September 16. If the petitioned resolution is substantially similar in substance to a resolution already under consideration, the petitioned resolution may be disqualified by the General Resolutions Committee. Resolutions can be viewed on the League's Web site: Www.cacities.org/resolutions. Any questions concerning the resolutions procedures may be directed to Linda Welch Diamond at the League office: ldiamond@cacities.org or (916) 658-8224. . II. GUIDELINES FOR ANNUAL CONFERENCE RESOLUTIONS Policy development is a vital and ongoing process within the League. The principal means for deciding policy on the important issues facing cities and the League is through the League's eight standing policy committees and the board of directors. The process allows for timely consideration of issues in a changing environment and assures city officials the opportunity to both initiate and influence policy decisions. Annual conference resolutions constitute an additional way to develop League policy. Resolutions should adhere to the following criteria. Guidelines for Annual Conference Resolutions 1. Only issues that have a direct bearing on municipal affairs should be considered or adopted at the Annual Conference. 2. The issue is not of a purely local or regional concern. 3. The recommended policy should not simply restate existing League policy. 4. The resolution should be directed at achieving one of the following objectives: r- (a) Focus public or media attention on an issue of major importance to cities. (b) Establish a new direction for League policy by establishing general principals around which more detailed policies may be developed by policy committees and the Board of Directors. (c) Consider important issues not adequately addressed by the policy committees and Board of Directors. (d) Amend the League bylaws (requires 2/3 vote at General Assembly). 11 V. 2010 ANNUAL CONFERENCE RESOLUTIONS RESOLUTION REFERRED TO ADMINISTRATIVE SERVICES POLICY COMMITTEE 1. RESOLUTION RELATING TO LEAGUE BYLAWS AMENDMENTS (2/3 vote at General Assembly required to approve) Source: League Board of Director Referred to: Administrative Services Policy Committee Recommendation to General Resolutions Committee: WHEREAS, The League of California Cities is a nonprofit mutual benefit corporation under California law, and, as such, is governed by corporate bylaws; and WHEREAS, the League's Board of Directors periodically reviews the League's bylaws for issues of clarity, practicality, compliance with current laws, and responsiveness to membership interests; and WHEREAS, the League's Board of Directors convened a Bylaws Review Committee to make recommendations regarding various necessary amendments to ensure that the most qualified and committed city officials are selected to serve on the League's Board, policy committees and other leadership positions, representing a broad diversity of backgrounds, experience, abilities, geography and other factors, and that . any barriers to their selection are removed; and WHEREAS, the Board of Directors approved the Bylaws Review Committee's recommendations that identified amendments to the bylaws that: a) encourage all segments of League membership to pursue leadership positions within the League to advance the goal that the League Board of Directors reflects the diverse ethnic and social fabric of California; b) clarify the League Board's nomination procedures and expand Board membership by four positions; and c) provide guidance to avoid conflicts of interest for Board and policy committee members with the expectation that decisions should be in the best overall interests of cities statewide; and WHEREAS, the League's Board offers amendments and additions to the following sections of the bylaws for the membership's consideration: 1. Article VIT, Section 1; new subsection l(b): Board Diversity Policy, Board of Directors 2. Article VIT, Section 2 (c), (f): Composition, Board of Directors 3. Article VIT, Section 5 (d): Nomination Process, Board of Directors 4. Article XIV, Section 1, new section: Conflicts of Interest 5. Article XIV, Section 4, new section: Ethical Considerations; now, therefore, be it RESOLVED, by the General Assembly of the League of California Cities assembled during the Annual Conference in San Diego, September 17,2010, that the League make the specified changes to the League bylaws by amending the above-referenced sections as indicated on Attachment A. [Please see ATTACHMENT A, following background information, for text of proposed bylaws amendments.] 111111///1 6 Background Information on Resolution No.1 Source: League Board of Directors Title: Resolution Relating to League Bylaws Amendments Background: At its February, 2010 Board meeting the League Board authorized the President to appoint a Bylaws Review, . Committee, consisting of a cross-section of current Board members, to review the provisions of League bylaws. This included policies related to governing the nomination and election of League Board members and officers with the goal of ensuring the most qualified and committed city officials are selected, representing abroad diversity of backgrounds, experience, abilities, geography and other factors, and that any barriers to their selection are removed. The Committee, chaired by First Vice President Jim Ridenour, completed its work in four face-to-face meetings (April 2, April 29, June 17 and July 9) and submitted its recommendations to the board. The Board approved the Committee's report and recommends the adoption of the following five amendments to the League bylaws: • Amendment to Article VII, Section 1. Board of Directors. The Committee reviewed a variety of recommendations from previous task forces to encourage greater diversity on the board of directors. It concluded that the best way to encourage greater diversity on the board of directors is to adopt a clear and unequivocal policy statement that the various subunits of the League should encourage and support all members to pursue leadership within the League with the ultimate goal of serving on the board of directors. The League board recommends this proposal for approval. • Amendment to Article VII, Section 2. Composition of Board of Directors. The Committee examined the current composition of the board of directors and is proposing to expand the board by two at-large positions and two large city positions to meet particular needs. Currently, the bylaws provide for approximately 50 directors, including 16 from regional divisions, 11 from functional departments of the League (e.g., city attorneys, city managers, etc.), 10 at-large directors, the mayors of the 8 largest cities (ranging from Los Angeles with 4,065,585 population to Oakland with 425,068 population, and the directors on the National League of Cities Board of Directors that are from California (approximately 2 - 4 members). All must be from dues paying cities. The Committee concluded thatdue to the overwhelming interest in the at-large positions (4 - 5 times the applications 'as available seats each year) additional opportunities to serve on the League board should be provided by increasing the available at-large seats from 10 to 12. The Committee also concluded that large city representation should be adjusted to reflect the existence and political value provided through the coalition of the state's "Big Ten" Mayors, by increasing big city mayoral representation on the board from 8 to 10. The current make-up of the Board allows for only the mayors of the eight largest cities. This excludes two important cities that participate regularly in the coalition of the ten (10) largest cities in the state--Santa Ana (355,662) and Anaheim (348,467)--with which the League works closely. The League board recommends this proposal for approval. • Amendment to Article VII, Section 5. Nomination Process. The Committee examined problems associated with the current process for the President selecting division representatives to serve on the Board Nominating Committee. Each year the President selects representatives from half (8) of the regional divisions, but the bylaws exclude those board members who are candidates for an officer or at-large position from serving. The Committee concluded that a problem can arise when the President is unable to appoint another board representative from a division if one or all of its representatives are candidates for officer or at-large positions. The proposed change would allow the League President to appoint a substitute nominating committee member from the same regional division, if available. If one is not available, the President shall appoint a substitute from a nearby regional division. The League board recommends this proposal for approval. 7 • Amendment to Article XIV, Section 1 (new section). Conflicts of Interest. The Board of Directors recently adopted a policy designed to reduce potential conflicts of interest by Board members and policy committee members involved in the adoption of League policy and asked the Committee to consider whether it should be proposed to be added to the League bylaws. The Committee recommends that this step be taken. The proposed new language is a general statement that Board members and policy committee members are expected to make decisions in the best overall interests of cities statewide, as opposed to narrow parochial, personal, or financial interests. The League board recommends this proposal for approval. • Amendment to Article XIV, Section 4 (new section). Ethical Considerations. As part of the guidance to avoid conflicts. of interest by Board members and policy committee members, language related to ethical considerations is recommended to clarify that the items described under Article XIV as prohibited transactions represent the floor and not the ceiling for standards of ethical conduct. The additional guidance recommends abstention from decisions where personal conflict may exist~ The League board recommends this proposal for approval. [NOTE: Please see ATTACHMENT A (page 9) fO.I'"'text of proposed bylaws amendments.] 8 (g) For,purposes of this section,the population of each city is the most current population as determined by the California Department of Finance, Demographic Research Unit, or its successor agency or unit. If no successor agency or unit is named, the most current population used to determine these dues shall be used to determine future dues until such time as these bylaws are amended to designate a new source for determining city population. (h) Directors hold office until their successors are elected and qualified or, if they sit on the League Board by virtue of their membership on the National League of Cities Board of Directors, until their terms on the NationalLeague of Cities Board of Directors conclude. Article Vll: Boar~ of Directors Section 5: Nomination Process. (d) Candidates for Positions Ineligible. Candidates for officer and at-large positions on the League Board are not eligible to serve on the nominating committee. In the event a regional division representative on the nominating committee wishes to be a candidate for an officer or at-large position, the League President will appoint a substitute nominating committee member from the same regional division. ifavailable.lfone is not available. the President shall appoint a substitute from a nearby regional division. ********** Article XIV: Prohibited Transactions Section 1: Conflicts of Interest General Principle. Members ofthe League board as well as members of League policy committees. and members of an V standing or ad hoc committees and task forces consisting of members ofthe League board or League policy committees. are expected to make decisions in the best overall interests of cities statewide. as opposed to narrow parochial. personal. or financial interests. This is analogous to city officials being expected to make decisions in the best overall interests ofthe community as opposed to narrow private or self-interests. Section 2. Loans. Except as permitted by California Nonprofit Corporation Law, the League may not make any loan of money or property to, or guarantee the obligation of, any director or officer. This prohibition does not prohibit the League from advancing funds to a League director or officer for expenses reasonably anticipated to be incurred in performance of their duties as an Officer or director, so long as such individual would be entitled to be reimbursed for such expenses under League Board policies absent that advance. Section 3: Self-Dealing and Common Directorship Transactions. (a) Self-Dealing Transactions. A self-dealing transaction is a transaction to which the League is a party and' in which one or more of its directors has a material financial interest. 10 (b) . Common Directorships. "Common directorships" occur when the League enters into a transaction with an organization in which one of the League directors also serves on the organization's board. . (c) Pre-Transaction Approval. To approve a transaction involving either self-dealing or a common directorship, the League Board shall determine, before the transaction, that, (i) The League is entering into the transaction for its own benefit; (ii) The transaction is fair and reasonable to the League at the time; and (iii) After reasonable investigation, the League Board determines that it could not have obtained a more advantageous arrangement with reasonable effort under the circumstances. Such determinations shall be made by the League Board in good faith, with knowledge of the material facts concerning the transaction and the director's interest in the transaction, without counting the vote of the interested director or directors. (d) Post-Transaction Approval. When it is not reasonably practicable to obtain Board approval before entering into such transactions, a Board committee may approve such transaction in a manner consistent with the requirements in the preceding paragraph, provided that, at its next meeting, the full Board determines in good faith that the League Board committee's approval of the transaction was consistent with such requirements and that it was not reasonably practical to obtain advance approval by the full Board, and ratifies the transaction by a majority of the directors then in office without the vote of any interested director. 1 Section 4: . Ethical Considerations. These restrictions, ofcourse, represent the floor not the ceiling for ethical conduct as a League board member or policy commiuee member. Ifa board member or policy commiUee member believes that there are circumstances under which the League's members might reasonably question the board member's or policy commiUee member's ability to act solely in the best interests in the League and its member cities, the prudent course is to abstain. As an example. typically. League board members have abstained from participating in decisions on legislation that would affect organizations for which they work. Another example is legislation that would uniquely benefit aboard member's city. Policy committee members should also consider abstaining in similar circumstances. »»»» 1 See Cal. Corp: Code § 7233 (specifying under what circumstances a self-dealing transaction is void or voidable). 11 RESOLUTION REFERRED TO COMMUNITY SERVICES POLICY COMMITTEE 2. RESOLUTION RELATING TO THE NATIONAL LET'S MOVE CAMPAIGN Source: League Board of Directors Referred to: Community Services Policy Committee Recommendation to General Resolutions Committee: WHEREAS, the League supports policies that focus on health and wellness, continuing education, and healthier lifestyles in all communities; and WHEREAS, many cities, counties, and schools have adopted policies, programs, and ordinances that promote healthy lifestyles by making their communities walkable, promoting youth and senior activities, eliminating the sale of junk food in city, county, or school facilities, providing incentives for stores that sell fresh produce to locate in depressed neighborhoods, and providing exercise opportunities for their residents; and WHEREAS, city officials believe there are important, long-term community benefits to be gained . by encouraging healthy lifestyles, including a decrease in the rate of childhood obesity and its negative health-related impacts; and WHEREAS, cities and other community partners can work together to understand the relationship between obesity, land-use policies, redevelopment, and community planning; and WHEREAS, cities and other community partners can work together to ensure that there are safe places for their residents to be active such as inparks, ball fields, pools, gyms, and recreation centers; and WHEREAS, access to healthy foods has a direct impact on the overall health of our community and planning for fresh food, open space, sidewalks, and parks should be a priority; and WHEREAS, the League has partnered with the Healthy Eating Active Living (HEAL) Cities Campaign to provide training and technical assistance to help city officials adopt policies that improve their communities' physical activity and retail food environments; and WHEREAS, the League wants to partner with and support the Let's Move! Campaign headed by the First Lady of the United States, the President's Task Force on Childhood Obesity and the Secretary of Health and Human Services, in an effort to solve the challenge of childhood obesity within a generation; now, therefore, be it RESOLVED, by the General Assembly of the League of California Cities, assembled during the Annual Conference in San Diego, September 17, 2010, that the League encourages the existing 480 California cities to adopt preventative measures to fight obesity as set forth by the First Lady of the United States of America in the Let's Move campaign; and, be it further RESOLVED, that California cities be encouraged to sign-up with the United States Department of Health and Human Services -Region IX office as a Let's Move! City; and, be it further RESOLVED, that California cities are encouraged to: (1) help parents make healthy family choices; (2) create healthy schools; (3) provide access to healthy and affordable foods; and (4) promote physical activity. 111111///1 12 Background Information on Resolution No.2 Source: League Board of Directors Title: Resolution Relating to the National Let's Move Campaign Background: According to the United States Department of Health and Human Services, Region 9: In February, First Lady Michelle Obama launched the Let's Move! campaign to solve the childhood obesity epidemic within a generation. First Lady Obama is expanding the effort to include a call to action for mayors and other elected officials to join her Let's Move! Campaign ("Let's Move Cities and Towns '') in an effort to leverage cities and communities unique ability to solve obesity locally and adopt long-term, sustainable, regional approaches to fight childhood obesity. On February 2,2010, President Barack Obama established the Task Force on Childhood Obesity, which includes senior administration officials. The Task Force developed an interagency plan after incorporating input from more than 2,500 public comments in 90 days. The plan details a coordinated strategy, identifies key benchmarks, and outlines an action plan to end the problem of childhood obesity within a generation. League adopts resolution in 2004: This resolution related to "encouraging healthier lifestyles for children, adults, and seniors in cities throughout California." This resolution directed the League to encourage cities to embrace policies that facilitate activities that promote healthier lifestyles, including healthy diet and nutrition, and adopt city design and planning principles that enable citizens to undertake exercise with the goal of achieving a more active and healthy community. League adopts resolution in 2006: This resolution related to "encouraging health and wellness in cities." This resolution directed that the League in cooperation with related League committees, departments, and the CCS Partnership, work together to develop a clearinghouse of information that cities can use to promote wellness policies and healthier cities. It also directed the League to develop a toolkit on the League's Website for cities to visit in order to share, find and develop successful models of health and wellnessto use in their respective communities. It also established that health and wellness programs become a topic of the Helen Putnam Awards Progr~ beginning in 2007. Previous Legislation: SCR 31 was introduced by Senator Alex Padilla in 2007, which established Healthy Communities Awareness Month. This Senate Concurrent Resolution recognized the importance of health and wellness in communities and declared the month of May as Healthy Communities Awareness Month. This was a League sponsored resolution. League Partners with the Healthy Eating Active Living (HEAL) Cities Campaign: The HEAL Cities Campaign provides training and technical assistance to help city officials adopt policies that improve their communities' physical activity and retail food environments. The HEAL Cities Campaign, funded by Kaiser Permanente and the Vitamin Cases Consumer Settlement Fund, is a partnership of the League of California Cities, the California Center for Public Health Advocacy, and the Cities Counties and Schools Partnership. At its core the HEAL Cities Campaign believes that supporting healthy choices is essential to address the obesity epidemic among California's children and adults, which they purport currently costs the state nearly $50 billion annually in healthcare and lost productivity. Forty cities have adopted resolutions and adopted specific action steps and a time line in one of the several key campaign areas (e.g., language in general plan, zoning ordinances governing street design or community gardens, joint use of recreational facilities, and employee wellness). The HEAL campaign goals are: 13 • To provide city officials information about the statewide obesity epidemic and demonstrate how the community food environment, physical activity environment, children's out-of-school environment(s), and soda consumption perpetuate the epidemics; and, • To inform city officials about the role they can play locally to fight the obesity and inactivity epidemics through policy adoption, and to recommend those policies that would improve the physical activity and food environments of their cities and make their community healthier. Existing League policy on Healthy Cities: The League encourages cities to embrace policies that facilitate activities that promote healthier lifestyles, including healthy diet and nutrition, and to adopt city design and planning principles that enable citizens to undertake exercise with the goal of achieving a more active and healthy community. Institute for Local Government (ILG) On Healthy Neighborhoods: ILG heads the Healthy Neighborhoods Project, which provides support and resources local officials can use to protect and improve community health by integrating health considerations into their planning, land use and· other decisions. The resources the ILG Website offers are geared to strengthen the efforts oflocal officials, staff, planning and development professionals, and community residents in creating healthier communities. . According to the Healthy Neighborhoods Project, healthy neighborhoods provide: (1) Places where walking and bicycling are safe and convenient and where residents of all ages and abilities have the opportunity to be physically active; (2) Nutritious, fresh, culturally appropriate food - grown locally whenever possible -is affordable and accessible, promoting health and boosting the local economy; (3) A place where residents aren't exposed to environmental hazards or pollutants that endanger their present or future health or well-being. ILG's Healthy Neighborhoods' Website provides current, relevant resources to aid in adapting general poliCies and strategies to reverse the negative trends related to physical inactivity,. unhealthy eating, and environmental hazards. National League of Cities (NLC) Commends First Lady Michelle Obama for Including Cities and Towns in Let's Move Campaign: In a press release dated June 11, 2010, NLC commends First Lady Michelle Obama for her newest initiative to combat childhood obesity, Let's Move Cities and Towns. The release continued that "NLC looks forward to working with the First Lady in encouraging loca11eaders to be proactive in their approach against childhood obesity." Through its Institute for Youth, Education and Families, NLC works to combat childhood obesity by raising awareness among municipal leaders and providing them with tools and resources to make changes in their communities. Most recently, NLC and the Foundation fQr the Mid South, with support from Leadership for Healthy Communities, a national program of the Robert Wood Johnson Foundation, launched the Municipal Leadership for Healthy Southern Cities project. This initiative will help local -officials in Arkansas, Louisiana and Mississippi advance policies to promote healthy eating and active living in order to reduce childhood obesity. NLC also recently collaborated with the American Association of School Administrators on a report, Community Wellness: Comprehensive City-School Strategies to Reduce Childhood Obesity. For more information on this NLC initiative visit www.nlc.orgliyef. »»»»» 14 RESOLUTION REFERRED TO ENVIRONMENTAL QUALITY POLICY COMMITTEE +3. RESOLUTION OPPOSING THE BOARD OF DIRECTORS' DECISION TO DEFER ACTION ON AB 32 AND SB 375 AND TO ADOPT THE BOARD-APPOINTED TASK FORCE RECOMMENDATIONS Source: Desert/Mountain Division Referred to: Environmental Quality Policy Committee; Housing, Community & Economic Development Policy Committee; Revenue and Taxation Policy Committee; and Transportation, Communication & Public Works Policy Committee Recommendations to General Resolutions Committee: + Environmental Quality Policy Committee: . + Housing, Community and Economic Development Policy Committee: + Revenue and Taxation Policy Committee: + Transportation, Communication & Public Works Policy Committee: WHEREAS, the DesertlMountain Division of the League of California Cities has broad concerns about the economy; and WHEREAS, these concerns extend both to the ability of cities to deliver vital public services and the viability of businesses which are critical to the State's economic recovery; and WHEREAS, the DesertlMountain Division of the League of California Cities is concerned that cities lack the resources to implement existing State mandates imposed at either the regional or local level; and WHEREAS, the League of California Cities Board of Directors appointed a Task Force to craft a recommendation regarding AB 32 and SB 375, based upon the recommendations developed by four policy committees; and WHEREAS, the Task Force recommended that the League of California Cities Board of Directors request specific actions by Governor Schwarzenegger and the California Air Resources Board to delay certain deadlines and take other actions with respect to AB 32 and SB 375; and WHEREAS, the League of California Cities Board of Directors rejected the specific recommendations of the Task Force and four policy committees by deferring action on AB 32 and SB 375; and WHEREAS, the Desert/Mountain Division of the League of California Cities wishes to file an official protest of the Board of Directors' decision to defer action on a position regarding AB 32 and SB 375; now, therefore, be it RESOLVED, by the General Assembly of the League of California Cities, assembled during the Annual Conference in San Diego, September 17, 2010, that the League of California Cities finds, determines and orders the adoption of the consolidated recommendations of four policy committees and the Board appointed Task Force, as follows: 1. Request that the Governor exercise his authority to delay individual AB 32 implementation deadlines. 15 2. Request that the California Air Resources Board take the following three actions: • Revisit and update economic and growth assumptions used to estimate 2020 business-as-usual emissions and recalculate AB 32·goal; • Consider local government costs in all future studies relating to AB 32 and SB 375; and • Request that the SB 375 targets be set in a way to reflect the economy and scarce local resources. 3. Support (but not sponsor) any legislation that would suspend or delay implementation of SB 375 until there is funding and resources in place to implement individual mandates and requirements associated with the bill; and, be it further, RESOLVED, that the specific recommendations developed by the four policy committees and Task Force be considered by the General Assembly at the Annual Conference unless the Board of Directors reverses its deferred action stance on AB 32 and SB 375 and adopts the Task Force recommendations. 1/1/////// Background Information on Resolution No.3 Source: DesertlMountain Division Title: Resolution Opposing the Board of Directors Decision to Defer Action on AB 32 and SB 375 and to Adopt the Board-Appointed Task Force Recommendations Background: The DesertlMountain Division adopted a Resolution formally opposing the Board of Directors decision to defer action on the Task Force's recommendations regarding AB 32 and SB 375. We took this action out of concern of the impact these regulations will have on our economy and our ability to serve our constituents, and do not want to be complicit by remaining silent on this issue. The recommended revisions to the League's current positions on AB 32 and SB 375 were crafted by a Board-appointed Task Force after study of the issue by four League policy committees. The changes recommended specific actions by Governor Arnold Schwarzenegger and the California Air Resources Board to delay certain deadlines and take other actions with respect to AB 32 and to suspend or delay the implementation of SB 375 until state funding is provided for the implementation of its mandates. The DesertlMountain Division believes that the Board's decision to defer action on the specific recommendations developed by the four policy committees and Board-appointed Task Force does not represent the majority of the member cities. This Resolution is being presented for consideration by the General Assembly at the Annual Conference to allow the entire membership to weigh in on the decision of whether or not to adopt the Task Force recommendations regarding AB 32 and SB 375. »»»»» 16 RESOLUTION REFERRED TO HOUSING, COMMUNITY & ECONOMIC DEVELOPMENT POLICY COMMITTEE +3. RESOLUTION OPPOSING THE BOARD OF DIRECTORS DECISION TO DEFER ACTION ON AB 32 AND SB 375 AND TO ADOPT THE BOARD-APPOINTED TASK FORCE RECOMMENDATIONS Resolution #3 also referred to these policy committees: Environmental Quality; Revenue and Taxation; and Transportation, Communication & Public Works. Please see Environmental Quality Policy Committee section for the resolution and background information. 1111111/// +4. RESOLUTION RELATING TO RESPONSIBLE BANKING Source: Richard Alarcon, Council Member, Los Angeles and Karen Avilla, City Treasurer, Carson Referred to: Housing, Community & Economic Development Policy Committee; and Revenue and Taxation Policy Committee Recommendation to General Resolutions Committee: + Housing, Community and Economic Development Policy Committee: + Revenue and Taxation Policy Committee: WHEREAS, cities strive to spend taxpayer dollars wisely on services; and WHEREAS, cities invest taxpayer dollars with a range of institutions that provide financial service contracts each year; and WHEREAS, it is important to ensure that taxpayer dollars are invested in institutions that are not just fiscally sound, but are committed to investing back into our communities, generating positive investment and lending in our cities; and WHEREAS, cities can help support the nation's economic recovery by supporting financial institutions that in tum re-invest in our local communities; and WHEREAS, the national Community Reinvestment Act, passed by the U.S. Congress in 1977, pioneered the use of transparent, responsible banking, by starting a federal rating system to measure banks' local lending and investment activity in the communities they take deposits from, providing accountability to the communities that institutions serve; and WHEREAS, three decades have passed since the original passage of the Community Reinvestment Act (CRA), and due in part to the dramatic changes in the U.S. banking system since this time, CRA does not provide the level of detail needed for local municipalities to determine our financial partners' lending activity and investment within a single city alone; and WHEREAS, on March 20, 2002, the City of Philadelphia signed into law a requirement that all banks authorized to receive deposits from the City submit an annual statement of community reinvestment goals within Philadelphia, including but not limited to a summary of the home loans, small business loans, and other lending and investment activity within Philadelphia, which independent studies 17 have confirmed has resulted in increased access to credit among Philadelphia's minority and low-and moderate-income communities; and WHEREAS, the City of Cleveland enacted into law a similar Community Reinvestment Depository Ordinance in 1991, and sinc;e that time has negotiated over $10 billion in lending commitments and investments through designated Community Reinvestment Initiative agreements with designated depository banks, with an independent study by the Brookings Institution confirming that compared to comparable midwestern cities CI(lveland's CRA Ordinance has resulted in "more bang for the community development buck;" and WHEREAS, on March 5, 2010,the Los Angeles City Council unanimously passed a Responsible Banking Initiative that requires financial institutions with which the City contracts to provide an annual "report card" detailing investment and lending activity within Los Angeles, to allow the City to reward institutions that re-invest in Los Angeles by adding extra points to these institutions' applications during the City's RFP process for fmancial service providers; and WHEREAS, many municipalities could benefit from increased transparency about which of the financial institutions their city taxpayer dollars are invested in are in turn re-investing in their city's homes, businesses, and non-profits, which will allow cities to hold banks to a higher standard of re- investment by offering increased city business to those that are generating higher levels of investment, lending, and community service activity within their city; now, therefore, be it RESOLVED, by the General Assembly of the League of California Cities, assembled during the Annual Conference in San Diego, September 17, 2010, that the League of California Cities strongly encourages municipalities to require transparent, responsible banking from the financial institutions receiving city funds; and, be it further RESOLVED, that the League of California Cities serve as a clearinghouse of information on the responsible banking initiatives of municipalities across the country, such as those of Philadelphia, Cleveland, Los Angeles and Carson, California; in order to help California cities interested in taking steps to increase transparent, responsible banking in their own communities. 1/1/////// Background Information on Resolution No.4 Source: Richard Alarcon, Council Member, Los Angeles and Karen Avilla, City Treasurer, Carson Title: Resolution Relating to Responsible Banking Background: As a Councilmember from the City of Los Angeles and a Treasurer from the City of Carson, we know that stewards of public funds must strive to ensure that taxpayer dollars are invested in businesses and institutions that are not just fiscally sound, but committed to investing back into our communities. On Friday, March 5,2010, the Los Angeles City Council unanimously passed a Responsible Banking Initiative that Councilmember Alarcon introduced last year, which will require financial instifutions with which the City of Los Angeles does business to provide an annual "report card" detailing the institution's investment and lending activity within the City. The purpose of the report card is to determine which institutions the City does business with are in turn reinvesting in the City, by extending credit to residents and businesses, and investing capital in 18 commufiities and development projects. The report card will allow policy makers to reward institutions with above average rates of impact in the City, while decreasing business with those institutions that do not recycle dollars back into the local economy. This effort could be likened to a local version of the federal Community Reinvestment Act, by allowing local policymakers to review the community reinvestment activity of the financial institutions with which the City invests. It builds on the work of existing law in the cities of Philadelphia and Cleveland. Both the City of Philadelphia, in 2002, and the City of Cleveland, in 1991, passed laws requiring annual statements of community reinvestment goals from the institutions that manage their City deposits. The City of Cleveland reports that, from 1991 through 2008, Cleveland has negotiated over 10 billion dollars in lending commitments and investments with designated depository banks as a result of their responsible banking law. In a 2003 report, the independent Brookings Institution compared three Midwestern cities and praised the City of Cleveland for achieving "more bang for their community development buck" through the use of their Community Reinvestment and other innovative City laws. We owe it to the current and future residents of our Cities to ensure that taxpayer dollars are invested in responsible banking institutions that are creating opportunities for investment and lending in our communities. That's why we urge the League of California Cities to encourage municipalities to require transparent, responsible banking from financial service providers. With the strength of our collective wallets combined, Cities will be sending a powerful message to banks: invest in us, and we will invest in you. »»»»» RESOLUTIONS REFERRED TO REVENUE AND TAXATION POLICY COMMITTEE +3. RESOLUTION OPPOSING THE BOARD OF DIRECTORS DECISION TO DEFER ACTION ON AB 32 AND SB 375 AND TO ADOPT THE BOARD-APPOINTED TASK FORCE RECOMMENDATIONS Resolution #3 also referred to these policy committees: Environmental Quality; Housing, Community & Economic Development; and Transportation, Communication & Public Works. Please see Environmental Quality Policy Committee section for the resolution and background information. IIIIIIIIII +4. RESOLUTION RELATING TO RESPONSIBLE BANKING Resolution #4 also referred to the Housing, Community & Economic Development Policy Committee. Please see the Housing, Community & Economic Development Policy Committee section for the resolution and background information. 111111111/ -Continued, Revenue and Taxation Resolutions- 19 5. RESOLUTION RELATING TO UNFUNDED STATE MANDATES Source: City of Santa Clarita Referred to: Revenue and Taxation Policy Committee Recommendation to General Resolutions Committee: WHEREAS, unfunded mandates· imposed upon local governments, including cities, counties and special districts, by the State of California place a tremendous financial burden upon local governments; and WHEREAS, some of the mandates placed upon local governments are the result of actions by Boards and Commissions not directly accountable to the electorate; and WHEREAS, the State of California and many local governments within the state are under financial duress due to the continuing national economic crisis, and WHEREAS, approximately twelve perc.ent of Californians, are currently unemployed and struggling to pay for basic life necessities, well above the national average; and WHEREAS, mandates enacted by the State of California may result in the need for local agencies to increase fees or taxes to satisfy the requirements of the mandate; and . WHEREAS, as citied in a 2005 report on state mandates published by the League of California Cities, the original intent of Property Tax Relief Act of 1972, which established the concept of state reimbursement of local agencies for state mandated activities, was to limit the ability of local agencies to levy taxes; and WHEREAS, in 1979 the voters of the State of California approved Proposition 4 adding Article Xill B to the California Constitution, requiring the state to provide a subvention of funds to local governments for costs associated with state mandated programs, under specified conditions, and through. subsequ~nt legislation creating the Commission on state mandates; and WHEREAS, in 2004, the voters of the State of California adopted Proposition lA expanding the constitutional protections for local governments regarding state mandates; and WHEREAS, the State of California has struggled to balance its budget for the past several years and has chosen to borrow funds from local governments, thus reducing traditional revenues to local governments, forcing additional local program and service reductions and cutbacks; and WHEREAS, various federal and state laws and regulations may result hi the imposition of state mandates on local governments; and WHEREAS, an example of state imposed mandates are the establishment of Total Maximum Daily Loads (TMDL) for such things as bacteria, chloride, metals; and toxicity, and WHEREAS, in order to meet the obligations imposed by Regional Water Quality Control Boards throughout California, local agencies may need to implement or increase fees and taxes to pay for new programs or facilit,ies, in order to avoid penalties for non-compliance; and 20 WHEREAS, there appears to be no, correlation between the imposition of state mandates, taxpayer funded resources to pay for the costs of state mandates, California's high unemployment rate, and the fiscal conditions of the State of California and local governments; now, therefore be it RESOLVED, by the General Assembly of the League of California Cities, assembled during the Annual Conference in San Diego, September 17, 2010, that: 1. The League of California Cities work with its member cities and other local government partners to identify'situations in which local governments must increase fees or taxes to meet state mandated requirements; and 2. The League of California Cities petition the Governor of the State of California and Legislature of the State of California to suspend or eliminate certain state mandates until improvement of the national and California economy results in substantially lower statewide unemployment and fiscal solvency of the State of California and'local governments; and 3. The League of California Cities work with Members of Congress and the government of the United States to suspend or eliminate certain federal mandates, passed along to the states for implementation, until the improvement of the national economy results in substantially lower national unemployment and fiscal solvency of the United States, the State of California and local governments; and 4. That the League of California Cities will support legislation to suspend, eliminate, or otherwise modify the negative impacts of state mandates on local agencies, particularly in which a new local tax orfee or tax or fee increase is necessary to implement the mandate. 11//////// Background Information on Resolution No.5 Source: City of Santa Clarita Title: Resolution Relating to State Unfunded Mandates Background: Reaching back at least forty years, local governments, including cities, counties and special districts, have struggled with mandates placed upon them by the State of California. Under California law, whenever the Legislature, Governor, or a state agency enacts a new law, executive order, regulation, or rule that requires a local government to implement a new program or provide a higher level of service to an existing program, the state shall reimburse the local agency for the increased cost. Over the past two decades, 'the California Legislature has made a practice of borrowing, transferring, shifting, or otherwise conveying from local governments to the State of California, as part of the state budget balancing process, what have historically been considered local revenues. The failure of the State of California, for the most part, to repay these funds to local governments has led to ballot measures restricting the ability of the state to use local revenues to balance its continual budget deficit. Against this backdrop, state regulatory agencies continue to impose requirements upon local governments, which may result in the need to increase local fees or taxes. Failure to implementthe regulatory requirements may result in the imposition of substantial financial penalties, which must be paid for by the local government and ultimately, taxpayers or rate payers within the jurisdiction. 21 At a time when California's unemployment rate is in excess of 12%, which is well above the national unemployment rate, and California businesses are struggling to stay afloat in the worst national recession since the great depression of the 1930s, the question of regulatory relief must be considered. For example, many communities throughout the State of California are facing establishment of Total Maximum Daily Load (TMDL) requirements for such things as bacteria, chloride, metals, and toxicity. While the environmental or other goals that are sought to be achieved are laudable, regulatory requirements must be sensitive to the overlaying statewide and national economic climate and the ability of local governments to pay for new programs and enhancements. In the Santa Clarita area, the Los Angeles Regional Water Quality Control Board, through imposition of a Chloride TMDL mandate and its required implementation, is causing local sanitation district ratepayers to pay a 50% fee increase over four years for increased operational and new facility expenses and committing to long term additional increases. Failure to approve the increase will likely invite substantial fines, totaling in the millions of dollars collectively for the ratepayers. In a time of economic uncertainty and high unemployment, is it appropriate to require California taxpayers to pay for new regulatory requirements or is it reasonable to suspend or eliminate certain state mandates until such time as unemployment levels return to more traditional levels and national, state and local governments return to financial stability? »»»»» RESOLUTIONS REFERRED TO TRANSPORTATION, COMMUNICATION & PUBLIC WORKS POLICY COMMITTEE +3. RESOLUTION OPPOSING THE BOARD OF DIRECTORS DECISION TO DEFER ACTION ON AB 32 AND SB 375 AND TO ADOPT THE BOARD-APPOINTED TASK FORCE RECOMMENDATIONS Resolution #3 also referred to these policy committees: Environmental Quality; Housing, Community & Economic Development; and Revenue and Taxation. Please see Environmental Quality Policy Committee section for the resolution and background information. 6. RESOLUTION RELATED TO ENHANCING PUBLIC SAFETY WHILE DRIVING A MOTOR VEHICLE Source: City of Elk Grove Referred to: Transportation, Communication & Public Works Policy Committee Recommendation to General Resolutions Committee: WHEREAS, cities throughout the State of California hold the health and safety of their residents as a paramount concern; and WHEREAS, the use of text messages has grown exponentially in recent years; and WHEREAS, any time a driver attempts to send an electronic text message while driving, his or her attention is diverted from the road; and WHEREAS, a recent Virginia Tech study showed sending electronic text messages while driving makes an accident 23 times more likely; and 22 WHEREAS, a study conducted by The Transport Research Laboratory in the United Kingdom showed that sending text messages while driving is riskier than driving under the influence of alcohol or drugs; and WHEREAS, Senate Bill 28 and California Vehicle Code Section 23123.5 ban writing, sending, or reading electronic text messages while operating a motor vehicle in the state of California; and WHEREAS, the League supports this type of traffic safety enhancement as demonstrated through their support of motorcycle helmets, child restraints, seat belt and speed limit laws; now, therefore, be it RESOLVED, by the General Assembly of the League of California Cities, assembled during the Annual Conference in San Diego, September 17,2010, that the League encourages cities to promote safe driving across California and the education of the general public about the dangers oftexting while driving. IIIIIIIIII Background Information on Resolution No.6 Source: City of Elk Grove Title: Resolution Relating to Enhancing Public Safety While Driving a Motor Vehicle Background: On September 24, 2008, the Governor of California, Arnold Schwarzenegger, signed Senate Bill 28 ("SB 28") into law. SB 28 is codified in section 23123.5 of the California Vehicle Code and prohibits any person from driving a motor vehicle while using an electronic wireless communications device to write, send, or read a text-based communication. SB 28 complements an existing law which Governor Schwarzenegger signed in 2006 requiring motorists to use hands-free devices while talking on a mobile phone when driving a motor vehicle. Many studies recognize that the distraction that occurs while using electronic devices while operating a motor vehicle is very dangerous: • It is estimated that 28% of crashes -1.6 million crashes per year -can be attributed to cell phone talking and texting while driving. (Source: National Safety Council) • Drivers who use hand-held devices are four times as likely to get into crashes serious enough to injure themselves. (Source: Insurance Institute for Highway Safety) • Using a cell phone while driving delays a driver's reactions as much as having a blood alcohol concentration at the legal limit of .08 percent. (Source: University of Utah) Because the health and safety of the residents of Elk Grove is paramount to the members of the City Council; on May 12,2010, the Elk Grove City Council unanimously adopted a resolution promoting awareness of the dangers oftexting while driving. The City is embarking on an aggressive,. yet economical, public outreach campaign to educate its residents about the dangers of texting while driving, which includes: educational links on the City's Web site, a flyer in the city's utility billing insert which reaches every household, free promotional items for residents specifically geared toward this topic, and a spotlight feature in the City's bimonthly newsletter. Other cities in California are encouraged to enhance public safety in their community by educating residents about the dangers oftexting while driving a motor vehicle. Educational outreach will benefit 23 drivers, passengers, by-standards, bicyclists, walkers and runners. Local governments have the ability to implement cost-effective educational tools to communicate with residents about this important public safety issue. All local government officials and employees in California want to protect their families, themselves~ and others. Please put down your phone when you are driving or use a hands-free device and do not text. It's safe and it's the law. »»»»» [NOTE: No resolutions were assigned to the following policy committees: Employee Relations and Public Safety.] . ########## 24