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City of Palo Alto Page 1
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At the direction of Council, staff recommends that the City Council approve Employee
Appreciation Leave of three days (not to exceed 36 hours) on a one-time basis for all City of
Palo Alto employees to be used between December 19, 2021 through January 8, 2022, and
authorize the City Manager or their designee to execute agreements with designated employee
representative groups as needed for implementation.
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The proposed Appreciation Leave is in recognition of the evolving and challenging times, and
appreciation for the invaluable continuing service provided by City employees. Over the past
year and a half, the City has evolved through rapidly changing health and safety operational
mandates, fiscal challenges, and much more. City staff have adapted and worked as individual
contributors and in teams to modify service delivery models, protect the safety of the
community, and successfully accomplish a number of significant milestones. Among numerous
achievements, the phased adaptation of public spaces in our local business districts, financial
support for residents and businesses, race and equity community conversations, and the
openings of Foothills Nature Preserve, Highway 101 Pedestrian/Bike Bridge and Palo Alto Junior
Museum & Zoo are generational milestones in their scope and impact. These accomplishments
have been achieved while also maintaining a focus on the safety of employees and the
community. The Appreciation Leave will encourage employees to celebrate their contributions
to the Palo Alto community, and to focus on employee wellness and wellbeing by using this
personal time.
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City of Palo Alto Page 2
The pandemic has reinforced the importance of focusing on wellness, wellbeing and personal
and professional connections. This leave is intended to encourage City employees to take
personal time to rejuvenate, as they prepare for a new year of serving the Palo Alto community.
To recognize and appreciate the City workforce, employees will be provided paid leave of three
days (appropriate to work schedules, not to exceed 36 hours) to use between December 19,
2021 through January 8, 2022. Employees providing essential services and emergency response
who are unable to take time off during the closure will be afforded an equivalent one-time
compensation in early 2022. Part-time and hourly employees will receive a pro-rated amount of
Appreciation Leave via a one-time compensation payment.
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City of Palo Alto Page 3
Throughout the year, the City workforce provides exceptional services to the Palo Alto
community. Employees have worked through evolving and challenging times over the last 18
months. City employees work 24/7 providing a variety of city services such as public safety,
community and library services, services focused on the City’s infrastructure and environment,
and other essential services such as water, gas, electric and wastewater utilities, supporting all
Palo Alto residents and community members. Employees with expertise in support services
such as finance, human resources and information technology provide critical work behind the
scenes and in support of the frontline workers and ensuring the City’s ability to meet legal and
fiscal responsibilities. The uncertainties and evolving pandemic realities have caused the City to
pivot and change service delivery, reduce staff while mitigating impacts to service levels, offer
virtual programming, and work together as a workforce and with the community in different
ways. It is important to recognize and appreciate the many accomplishments and milestones
reached through the diligent work of the City workforce.
The City of Palo Alto participates in a year-end shutdown between the Christmas and New
Years’ holidays. For 2021, City operations will close December 24, 2021 and return on January
3, 2022, with the exception of essential and emergency services. During the year-end closure,
employees receive paid holidays and are required to also use vacation, compensatory time,
personal leave, or take the time without pay. The typical employee schedule requires 24 to 36
hours of paid leave to maintain full compensation, based on varying schedules.
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Human Resources staff have advised the appropriate employee representatives of the one-time
Appreciation Leave described in this report, and the representatives are aware this item is
subject to Council approval. Staff are working closely among internal departments including
Human Resources, Administrative Services, City Attorney, and City Manager’s offices on the
implementation details, including the execution of formal documents should this item be
approved.
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Staff estimates the financial value of this leave in totality is estimated at $1.5 million for all
funds, of which $915,000 is General Fund. The actualmonetary impact will depend on the
election of time off versus compensation in lieu of leave if employees are unable to take time
off due to the nature of their work. Based on HR staff’s review of salaries and estimated
number of staff required to provide essential services and emergency response and unable to
take leave, it is estimated that the monetary impact is approximately $844,000, of which
approximately $600,000 is a General Fund impact.
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City of Palo Alto Page 4
For full-time employees using the Appreciation Leave during December 19, 2021 through
January 8, 2021 (year-end closure; last pay period of the calendar year and first pay period of
2022), there is no additional impact to the current year budget if taken as leave; salaries are
fully funded in the adopted budget. If an employee is unable to take time off during this period
as they are providing essential services and emergency response, they will be afforded an
equivalent one-time compensation in early 2022.
This one-time payment and increase in leave balances is not specifically budgeted and will be
adjusted for as part of the FY 2022 Mid-Year Budget Review through the recommended
appropriation of funding ultimately impacting the FY 2021 one-time surplus funding ($4.6
million) above the Council Budget Stabilization Reserve target of 18.5% as necessary.
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