Palo Alto City Council
January 10, 2022

1 City Council
Special Meeting
Monday, January 10, 2022
5:00 PM
Virtual Only

Pursuant to AB 361 this City of Palo Alto City Council Meeting Will Be Held by Virtual Teleconference Only

To prevent the spread of Covid-19, this meeting will be held by virtual teleconference only, with no physical location. Members of the public who wish to participate by computer or phone can find the instructions below and at the end of this agenda.

HOW TO PARTICIPATE

VIRTUAL PARTICIPATION

CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900-6833

The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and s t r e a m e d t o Midpen Media Center at https://midpenmedia.org.

TIME ESTIMATES
Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.

PUBLIC COMMENTS
Publi c Comments will be accepted both in person and via Zoom meeting. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to [email protected] and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your email subject line.

CALL TO ORDER
CLOSED SESSION (5:00 PM – 6:00 PM)
Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker.

1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority:

Government Code Section 54956.8 Property: 445 Bryant Street 2 Special Meeting January 10, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.

Assessor’s Parcel Number 120-15-107
Negotiating Party: JSRFIT LLC, a California limited liability company d.b.a. Form Fitness
City Negotiators: Ed Shikada and Kiely Nose
Subject of Negotiations: Lease Price and Terms of Payment

AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:00 PM – 6:25 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.

CONSENT CALENDAR (6:25 PM – 6:35 pm)
Items will be voted on in one motion unless removed from the calendar by three Council Members.

2. Approve Minutes from December 6th and 13th, 2021 and Ja nuary 3, 2022

3. Approval of Contract C22181106 with Universal Site Services Inc. for a Total Not-to-Exceed Amount of $1,214,373 Over a F ive Year Term for Scheduled and On -Call Steam Cleaning Services at Various City Locations

4. Adoption of Labor Agreements with 1) Service Employees International Union Hourly (SEIU-H) Unit , 2) Utilities Management and Professional Association of Palo Alto (UMPAPA), and 3) Service Employee International Union (Classification Revision).

5. Adopt a Park Improvement Ordinance for the Replacement of the Palo Alto Flood Basin Tide Gate Structure in the City's Baylands

6. Adoption of Two Resolutions Authorizing P articipation in the California Arrearage Payment Program (CAPP) for Gas and Electric Utilities, and the California Wate r and Wastewater Arrearage Payment Program (CWWAPP), Including Acceptance of Funds and Crediting Eligible Utility Accounts; and Approval of Amendments to the Fiscal Year 2022 Budget Appropriation Ordinance for the Electric, Gas, and Water Funds to Account for CWWAPP and CAPP Funds

7. Adoption of an Interim Ordinance Amending Titles 16, 18 and 21 in Response to Senate Bills 9 and 478, Includ ing Amendment to the City's Affordable Housing Requirements for SB 9 Projects. CEQA Status: This Action is not Considered a Project or is Exempt from CEQA in Accordance With Government Code Sections 66411.7(n) and 65852.21(j) or Section 15061 of the State CEQA Guidelines.

QA
QA
QA
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Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.

8. SECOND READING: Adoption of an Ordinance Restating Procedures For Expedited Permitting Processing F or Electric Vehicle Charging Systems (FIRST READING: December 13, 2021 PASSED: 6-0, Kou absent)

9. SECOND READING: Adoption of a Park Imp rovement Ordinance for Renovations at Cameron Park (FIRST READING: February 8, 2021 PASSED: 7-0)
CITY MANAGER COMMENTS (6:35 PM – 7:00 PM)

ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters.

10. PUBLIC HEARING: Staff Recommend the City Council Review the North Ventura Coordinated Area Plan (NVCAP) Preferred Alternative, Take Public Comment, and Endorse the Preferred Alternative.
(7:00 PM – 8:30 PM)

11. Review and Accept the FY 2023 - FY 2032 Long Range Financial Forecast (LRFF) and FY 2023 Budget Development Guid elines (8:30 PM – 10:00 PM)

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
Members of the public may not speak to the item(s)

ADJOURNMENT

INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda.

12. Informational Update on Utilities Operational Improvements

OTHER INFORMATION
Standing Committee Meetings - None
Schedule of Meetings
Public
Comment
Presentation
Presentation
4 Special Meeting January 10, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.

PUBLIC COMMENT INSTRUCTIONS

Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.

1. Written public comments may be submitted by email to [email protected].

2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Z oom-based meeting. Please read the following instructions carefully.

A. You may download the Zoom client or connect to the meeting in - browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Ed ge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer.

B. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.

C. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak.

D. When called, please limit your remarks to the time limit allotted.

E. A timer will be shown on the computer to help keep track of your comments.

3. Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above.

4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how lon g you have to speak. When called please limit your remarks to the agenda item and time limit allotted.

CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone:1(669)900-6833

City of Palo Alto (ID # 13919)
Office of the City Clerk
City Council CAO Report

Meeting Date: 1/10/2022

Title: Approve Minutes from December 6th and 13th, 2021 and January 3, 2022
From: Lesley Milton, City Clerk

Staff recommends review and approval of the attached minutes for the above three meetings.

ATTACHMENTS:
• Attachment2.a: 20211206amCCs (DOCX)
• Attachment2.b: 20211213amCCs (DOCX)
• Attachment2.c: 20220103amCCr (DOCX)
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CITY COUNCIL

DRAFT ACTION MINUTES

Special Meeting
December 6, 2021
The City Council of the City of Palo Alto met on this date in virtual teleconference at 5:00 P.M.

Present: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka

Absent: None
Closed Session

1. CONFERENCE WITH CITY ATTORNEY -EXISTING LITIGATION Subject:

Joel Alejo v. City of Palo Alto, et al. Santa Clara County Superior Court Case No. 21CV378968 Authority: Government Code Section
54956.9(d)(1).

2. CONFERENCE WITH LABOR NEGOTIATORS City Designated
Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Rumi Portillo, Sandra Blanch, Nicholas Raisch, Molly Stump, and Terence Howzell) Employee Organization: Service Employees International Uni on,(SEIU) Local 521, Utilities Management and Professional Association of Palo Alto (UMPAPA)Palo Alto Peace Officer’s Association (PAPOA), Palo Alto Police Management Association (PMA), International Association of Fire Fighters (IAFF) local 1319, Palo Alt o Fire Chiefs Association (FCA), ; Authority: Government Code Section 54957.6 (a).

MOTION: Council Member Cormack moved, seconded by Mayor Dubois to go into Closed Session.

MOTION PASSED: 7-0
Council went into Closed Session at 5 P.M.

Council returned from Closed Session at 6:00 P.M.

Mayor DuBois announced there were no reportable action.

Agenda Changes, Additions and Deletions

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Mayor Dubois announced Item 2 was continued to the next meeting and not heard during this meeting. Council Member Shi kada announced there were At Places memos distributed for Item 7 and 9.

Consent Calendar
Council Member Tanaka registered a no vote on Agenda Item Numbers 6-8.

MOTION: Vice Mayor Burt moved, seconded by Mayor Dubois to approve the Consent Agenda Items 3-8.

3. Approval of Minutes November 16, 2021 and November 22, 2021 City Council Meeting.

4. Approval of contract with Life Insurance Company of North America (CIGNA) for Under writing of the City of Palo Alto’s Group Life, Accidental Death and Dismemberment (AD&D), and Long Term Disability Insurance (LTD) Plans for Up to Three Years for a total not to exceed $1,920,000.

5. Adoption of Resolution 10003 for the Santa Clara County Historical Heritage Grant Program Authorizing the Application and Receipt of Grant Funds by the City of Palo Alto for the Roth Building (300 Homer Ave) Elevator Restoration

6. Amendment No. One with Ten Geographic Information Systems (GIS) On-Call Prof essional Service Contracts with: 1) Critigen LLC; 2) GIS Solutions, Inc.; 3) Utility DataContracts, Inc.; 4) Turf Image, Inc.; 5) Vestra Resources, Inc.; 6) Michael Baker International, Inc.; 7) iSpatial Techno Solutions, Inc.; 8) Geographic Information Se rvices, Inc.; 9) Seven Tablets, Inc.; and, 10) Timmons Group, Inc., C20174611(A-F), Increasing the Not-To-Exceed Amount from$700,000 Annually for Contract Year 1, to $1,500,000 Annually for Contract Years 2 through 5, for a Total Not -to-Exceed Amount$6,700,000 over the Five-Year Term Across All Ten On-Call GIS Contracts.

7. Amendment Number 1 to Contract Number C19173686 with OpenCities, Inc. to Add to Increase the Scope of Services to Add Additional Website Functionalities such as a Junior Museum Sub - Website, and Increase the Compensation Amount Accordingly, by$167,317 for a New Not -to-Exceed Contract Amount of $434,517 through FY25.

8. Approval of a Purchase Order with Interstate Truck Center d/b/a Valley Peterbilt in an Amount Not -to-Exceed $391,002 for the Pur chase of a

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2023 Peterbilt 537 with an American Truck and Trailer Body Service Body, Utilizing a Sourcewell Cooperative Purchase Agreement; and Approval of a Fiscal Year 2022 Budget Amendments in the Vehicle Replacement and Maintenance Fund Scheduled Vehic le and Equipment Replacement Capital Project (VR-22000) and the Gas Fund.

ITEMS 3-5 OF MOTION PASSED: 7-0
ITEMS 6-8 OF MOTION PASSED: 6-1, Tanaka no
Action Items

9. Adoption of Interim Urgency Ordinance 5538 Amending Titles 18 and 21 in Response to Senate Bill 9; Adoption of an Interim Ordinance Amending Titles 18 and 21 in Response to Senate Bills 9 and 478; Adoption of Objective Design Standards for SB 9 Projects; and Referral of Work on a Permanent Ordinan ce to the Planning and Transportation Commission and the Architectural Review Board.

FIRST MOTION: Vice Mayor Burt moved, seconded by Mayor Dubois to:

A. Adopt the attached interim urgency ordinance to immediately integrate Senate Bill 9 into the Palo Alto Municipal Code and, by reference, adopt objective design standards) for qualifying SB 9 projects; and
B. Include that newly created lot lines shall not render an existing structure noncomplying in any respect (e.g. floor area ratio, lot coverage, parking), nor increase the degree of noncompliance of an existing noncompliant structure.

FIRST MOTION PASSED: 7-0
SECOND MOTION: Vice Mayor Burt moved, seconded by Council Member Stone requesting Staff to:

A. Return at the earliest possible time in January 2022 t o adopt the attached interim ordinance (attachment B) as revised below; B. Include lot split language: Newly created lot lines shall not render an existing structure noncomplying in any respect (e.g. floor area ratio, lot coverage, parking), nor increase the degree of noncompliance of an existing noncompliant structure;
C. Include language to Senate Bill 9 impacted developments reflecting a 15% affordable housing in -lieu fee to “for sale” units and existing

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residential impacts fees for rental units, and request that staff return with additional analysis of the impacts of these fees; and D. Include requirement that the owner signs an affidavit of intention to occupy one of the housing units created on the parcel map as their primary residence for a minimu m of three years from the City’s issuance of the certificate of occupancy.

MOTION SPLIT FOR THE PURPOSE OF VOTING
PARTS A, B and D OF SECOND MOTION PASSED: 7-0
PARTS C OF SECOND MOTION PASSED: 6-1, Tanaka no

THIRD MOTION: Mayor Dubois moved and seconded by Council Member Kou requesting Staff:

A. Consider feedback provided tonight and refer work on a permanent ordinance to the Planning and Transportation Commission (PTC) and Architectural Review Board (ARB) work plans for 2022; and

B. Assess and return with recommendations on short term rental penalties, information necessary to update the historic registry; look at what aspects of the Eichler guidelines could be used for objective standards, specify consequences for failure to occupy the unit, reporting on SB 9 projects, plans for notification to nearby properties; request staff to explore the designation of high risk fire areas in Palo Alto Foothills; evaluate and align City ADU requirements with State requirements; evaluate street frontage for the primary units; evaluate renaming R1 Single Family Zoning to a title that more accurately describes the new standards; and analysis of the feasibly of requiring a 25% or one unit inclusionary housing requirement for SB 9 projects

MOTION SPLIT FOR THE PURPOSE OF VOTING

PARTS A OF THIRD MOTION PASSED: 7-0
PARTS B OF THIRD MOTION PASSED: 5-2, Cormack, Tanaka no

10. Discuss and Provide Direction to Staff on Development of New Parking Facilities in the University Avenue Downtown Including Consideration of: (a) Resuming Work on the Garage Project at 375 Hamilton Avenue; or (b) Issuing a Request for Information (RFI) from Private Partners Regarding Development of Parking Using Parking In -Lieu Fees,

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Potentially in Conjunction with Housing or Other Uses, on Private or City-Owned Properties.

MOTION: Vice Mayor Burt moved, seconded by Council Member Stone to direct staff to:

A. Initiate a Request for Information (RFI) to examine feasibility of partnering with a private entity (for -profit or non -profit) on development of new parking using Downtown In -Lieu Parking Fees, in conjunction with housing or other uses, including the use of City surface lots or privately held parcels; and
B. Council supports a preference for pursuing affordable housing as the preferred housing compone nt, a preference for lot D as the preferred location, (proposed add) and limits the use of general funds to subsidize parking construction
MOTION PASSED: 6-1, Filseth no
Adjournment: The meeting was adjourned at 11:11 P.M.

ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes a re prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b) . Summary minutes ( sense) are prepared in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423 , the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Cou ncil and committee proceedings. These recordings are available on the City’s website.

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CITY COUNCIL

DRAFT ACTION MINUTES

Special Meeting
December 13, 2021
The City Council of the City of Palo Alto met on this date in virtual teleconference at 5:01 P.M.

Present: Burt, Cormack, DuBois, Filseth, Stone, Tanaka

Absent: Kou
Closed Session

1. CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Rumi Portillo, Sandra Blanch, Nicholas Raisch, Molly Stump, and Terence Howzell)
Employee Organization: Service Employees International Union,(SEIU) Local 521, Utilities Management and Professional Association of Palo Alto (UMPAPA)Palo Alto Peace Officer’s Association (PAPOA), Palo Alto Police Management Association (PMA), International Association of Fire Fighters (IAFF) local 1319, Palo Alto Fire Chiefs Association (FCA), ; Authority: Government Code Section 54957.6 (a). This item has been continued to a date uncertain.

Special Orders of the Day

2. Adoption of Resolution 10007 for Karen McAdams Upon Her Retirement.

MOTION: Council Member Filseth moved, seconded by Council Member Stone to adopt the Resolution for Karen McAdams upon her retirement.

MOTION PASSED: 6-0, Kou absent

3. Appointment of Candidates for the Architectural Review Board, Historic Resources Board, Parks and Recreation Commission, and Planning and Transportation Commission.

MOTION: Mayor DuBois moved, seconded by Council Member Cormack to:

A. Vote tonight for two ARB positions;

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B. Direct the Clerk to open a new recruitment opening from now until the end of January for the open positions; and
C. Request the incumbent to serve the holdover position until recruited.

MOTION PASSED: 6-0, Kou absent
The City Council took a break at 5:17 P.M. and returned at 6:00 P.M.

First Round of voting for two positions on the Architectural Review Board with terms ending December 15, 2024.

Voting For:

Peter Baltay (Incumbent):

Valerie Driscoll:

David L. Hirsch (Incumbent):

Yujin Jeon:

Kathryn Jordan:

Manix Patel:

Brigham Wilson:

Jim Xiao:

Bin Zhou:

Burt, Cormack, DuBois, Filseth,
Stone

Burt, Cormack, DuBois, Filseth,
Stone
Tanaka

Tanaka
Peter Baltay with 5 votes, and David L. Hirsch with 5 votes were appointed to the Architectural Review Board.

First Round of voting for one position on the Historic Resources Board with an unexpired term ending December 15, 2022.

Voting For:

Valerie Driscoll:

Alisa Eagleston-Cieslewicz:

Burt, Cormack, DuBois, Filseth,
Stone, Tanaka
Alisa Eagleston-Cieslewicz with 6 votes was appointed to the unexpired term on the Historic Resources Board.

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DRAFT ACTION MINUTES

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First Round of voting for two positions on the Parks and Recreation Commission with terms ending December 15, 2024.

Voting For:

Annie Carl:

Anne Warner Cribbs (Incumbent):

Claire Elliott:

Nellis L. Freeman, Jr.:

Jeff Greenfield (Incumbent):

Eve Klein:

Shani Kleinhaus:

Joy Oche:

Rich Pearson:

Andie Reed:

Thomas Rota:

Mark Bennett Weiss:

Cormack, Filseth, Stone

Burt
Burt, DuBois, Filseth, Stone

Cormack, Tanaka
DuBois
Tanaka

Jeff Greenfield with 4 votes was appointed to the Parks and Recreation Commission. A second round of voting for the remaining term ending December 15, 2024 is required.

First Round of voting for two positions on the Planning and Transportation Commission with terms ending December 15, 2025.

Voting For:

Bryna Chang (Incumbent):

Leonard Ely:

Kathryn Jordan:

Arthur Keller:

Burt, DuBois, Filseth, Stone, Tanaka

Tanaka
Stone

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Chunming Niu:

Keith Reckdahl:

Nisar Shaikh:

Brigham Wilson:

Burt, Cormack, DuBois, Filseth

Cormack
Bryna Chang with 5 votes, and Keith Reckdahl with 4 votes were appointed to the Planning and Transportation Commission.

Second Round of voting for 1 position on the Parks and Recreation Commission with a term ending December 15, 2024.

Voting For:

Annie Carl:

Anne Warner Cribbs (Incumbent):

Claire Elliott:

Nellis L. Freeman, Jr.:

Eve Klein:

Shani Kleinhaus:

Joy Oche:

Rich Pearson:

Andie Reed:

Thomas Rota:

Mark Bennett Weiss:

Cormack, Filseth, Stone

Burt

Tanaka
DuBois
There was no majority vote for the applicants. A third round of voting was required.

Third Round of voting for 1 position on the Parks and Recreation Commission with a term ending December 15, 2024.

Voting For:

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Anne Warner Cribbs (Incumbent):

Eve Klein:

Rich Pearson:

Andie Reed:

DuBois, Cormack, Filseth, Stone
Burt
Tanaka

Anne Warner Cribbs with 4 votes was appointed to the Parks and Recreation Commission.

First Round of voting for one position on the Parks and Recreation Commission with an unexpired term ending December 15, 2022.

Voting For:

Annie Carl:

Claire Elliott:

Nellis L. Freeman, Jr.:

Eve Klein:

Shani Kleinhaus:

Joy Oche:

Rich Pearson:

Andie Reed:

Thomas Rota:

Mark Bennett Weiss:

Burt, DuBois, Filseth

Stone

Cormack, Tanaka

There was no majority vote. A second round of voting was required.

First Round of voting for one position on the Parks and Recreation Commission with a term ending December 15, 2025.

Voting For:

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Annie Carl:

Claire Elliott:

Nellis L. Freeman, Jr.:

Eve Klein:

Shani Kleinhaus:

Joy Oche:

Rich Pearson:

Andie Reed:

Thomas Rota:

Mark Bennett Weiss:

Burt, Cormack, DuBois,
Filseth, Stone

Tanaka

Nellis L. Freeman, Jr with 5 votes was appointed to the term on the Parks and Recreation Commission.

First Round of voting for one position on the Parks and Recreation Commission with an unexpired term ending December 15, 2022.

Voting For:

Annie Carl:

Claire Elliott:

Eve Klein:

Shani Kleinhaus:

Joy Oche:

Rich Pearson:

Andie Reed:

Thomas Rota:

Burt
Stone

Cormack, Tanaka
DuBois, Filseth

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Mark Bennett Weiss:

There was no majority vote. A second round of voting was required.

Second Round of voting for one position on the Parks and Recreation Commission with an unexpired term ending December 15, 2022.

Voting For:

Annie Carl:

Claire Elliott:

Eve Klein:

Shani Kleinhaus:

Joy Oche:

Rich Pearson:

Andie Reed:

Thomas Rota:

Mark Bennett Weiss:

Burt, Stone

Cormack, Filseth, Tanaka
DuBois

There was no majority vote. A third round of voting was required.

Third Round of voting for one position on the Parks and Recreation Commission with an unexpired term ending December 15, 2022.

Voting For:

Annie Carl:

Claire Elliott:

Eve Klein:

Shani Kleinhaus:

Joy Oche:

Burt, Stone, DuBois

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Rich Pearson:

Andie Reed:

Thomas Rota:

Mark Bennett Weiss:

Cormack, Tanaka
Filseth

There was no majority vote. A fourth round of voting was required.

Fourth Round of voting for one position on the Parks and Recreation Commission with an unexpired term ending December 15, 2022.

Voting For:

Annie Carl:

Claire Elliott:

Eve Klein:

Shani Kleinhaus:

Joy Oche:

Rich Pearson:

Andie Reed:

Thomas Rota:

Mark Bennett Weiss:

Burt, DuBois, Filseth,
Stone

Cormack, Tanaka

Shani Kleinhaus with 4 votes was appointed to the unexpired term on the Parks and Recreation Commission.

Agenda Changes, Additions and Deletions
Mayor DuBois announced that Item 20A and 20B will be heard together as one item.

Consent Calendar

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Council Member Tanaka registered a no vote on Agenda Item Number 10, 13, 14.

MOTION: Vice Mayor Burt moved, seconded by Council Member Cormack to approve Agenda Item Numbers 4-18.

4. Approval of Minutes November 29, 2021 City Council Meeting.

5. Approval of Amendment Number 1 to Contract Number C21179861 with Downtown Streets, Inc., for Downtown Cleaning Services, in Order to Extend the Term by Two Years (through January 11th, 2024), Increase the Total Not to Exceed Amount to $323,244, and Correct a Clerical Error in the Contractor's Name.

6. Approval of Contract Number C20182200 With Cratus, Inc. in the Amount of $3,444,302 for Sanitary Sewer Replacement Project 30 (WC-17001) in the Ventura, Charleston Meadows, Fairmeadow, and Palo Verde Neighborhoods; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not -to-
Exceed$344,430, for a Total Not -to-Exceed Amount of $3,788,732; and Approval of Budget Amendments in the Wastewater Collection Fund.

7. Approval and Authorization for the City Manager or Their Designee to Execute the Following Three Utilities Public Benefits Program Co ntract Amendments: 1) Amendment Number 3 to Eagle Systems
International, Inc. DBA Synergy Companies C15159126, Extending the Term for One Additional Year With no Increase in Compensation; 2) Amendment Number 4 to Eagle Systems International, Inc. DBA Synergy Companies C15159125, extending the Term for One Additional Year With no Increase in Compensation; 3) Amendment Number 3 to CLEAResult Consulting, Inc. C15159135 extending the Term for One Additional Year With no Increase in Compensation.

8. Approval of a P rofessional Services Agreement With CLEAResult for Efficiency and Electrification Program Services for Small to Medium Business and Commercial Customers for a Total Not -to-Exceed Amount$2,571,714 for a Three -Year Term Through December 31, 2024.

9. Approval of Resolution 10008 amending the City of Palo Alto's Employee Flexible Benefits Plan as a provision of the Consolidated Appropriations Act of 2021 and the American Rescue Plan Act of 2021 (ARPA) as they relate to Employee Health Care and Dependent Care Flexible Spending Accounts.

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10. Approval of Amendment No. 3 to Contract C17166591 with Susan Zoccola, LLC to increase the contract amount by $35,000 for a total not to exceed amount of $135,000 and to extend the term through December 2023 to complete the artwork as sociated with the Charleston-Arastradero Corridor Project.

11. Approval of Contract S20178749 Amendment No. 2 with LCT SOFTWARE, LLC in the Amount of $70,800 for a New Not to Exceed Amount of $174,330 for Electronic Document Review Software related to the city ’s Land Use and Permitting System Through December 31, 2022.

12. Adoption of Resolution 10009 Approving an Application and Making Required Findings for Proposition 68 Per Capita Grant Funds for Boulware Park Improvement Project in the Amount of $218,000.

13. Request for Authorization to Amend the Existing Legal Service Agreement With the Law Firm of Colantuono, Highsmith & Whatley, PC (Contract S17167696) to Increase the Contract Amount by an Additional $70,000 for a new Not -to-Exceed Amount of $455,000 and to Extend the Term to October 1, 2024.

14. Adoption of Revisions to Management and Professional Employees Compensation Plan.

15. Approval of a Memorandum of Understanding Between the City of Palo Alto Police Department and the City of Campbell for the Santa Clara County Specialized Enforcement Team (SCCSET) for a Period of Ten Years at a Cost of $10,000 or $5,000 Annually Depending on PAPD Participation.

16. Adoption of an Ordinance Restating Procedures For Expedited Permitting Processing For Electric Vehicle Charging Systems.

17. Approval of a License Agreement With New Cingular Wireless PCS, LLC, to Continue Operating the Communications Site on the City Owned Property Located at 1082 Colorado Avenue.

18. Adoption of Resolution 10010 Authorizing the City Manager to Execute Participation Agreements on behalf of Palo Alto to Enter Into the Settlement Agreements with McKesson Corporation, Cardinal Health, Inc., AmerisourceBergen Corporation, Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceuitca, Inc., Agree to the Terms of the MOU

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DRAFT ACTION MINUTES

Sp. City Council Meeting
Draft Action Minutes: 12/13/2021
Allocating Settlement Proceeds, and Authorize Entry Into the MOU with the California Attorney General.

ITEMS 10, 13, 14 OF MOTION PASSED: 5-1, Tanaka no, Kou absent ITEMS 4-9, 11-12, 15-18 OF MOTION PASSED: 6-0, Kou absent Action Items

19. Progress Report on the Sustainability and Climate Action Plan Update and S/CAP Ad Hoc Committee Work, and Acceptance of the S/CAP Three-Year Work Plan.

MOTION: Council Member Cormack moved, seconded by Council Member Filseth to:

A. Accept the current draft S/CAP 3-Year Work Plan that incorporates the Council directives from April 2021 (Attachment A);
B. Direct Staff to propose necessary staffing in the Electric Fund and the General Fund during the mid -year budget update, in order to implement the near -term activities in the draft S/CAP 3 -Year Work Plan; and
C. Direct Staff to bring forward a proposal on including an S/CAP impact statement as part of future relevant staff reports on City Council items at the 2022 City Council Retreat.

MOTION PASSED: 6-0, Kou absent
The City Council went on a break at 8:54 P.M. and returned at 9:06 P.M. 20A. Approval of Employee Appreciation Leave of Three Days (Not to Exceed 36 Hours) On A One-time Basis for 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.
20B. Approval of Amendments to the Employment Agreements Between the City of Palo Alto and Council Appointed Officers, Specifically the City Attorney and the City Manager.

Items 20A and 20B were heard together as one Item.

MOTION: Vice Mayor Burt moved, seconded by Council Member Cormack to:

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DRAFT ACTION MINUTES

Sp. City Council Meeting
Draft Action Minutes: 12/13/2021
A. 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; B. Authorize the City Manager or their designee to execute agreements with designated employee representative groups as needed for implementation;
C. Approve and authorize the Mayor to execute the following contract amendments for Council Approved Officers:
i. Amendment No. 9 to Employment Agreement between the City of Palo Alto and Molly S. Stump; and
ii. Amendment No. 3 to Employment Agreement between the City of Palo Alto and Ed Shikada.

MOTION PASSED: 5-1, Tanaka no, Kou absent

21. Discussion and Possible Direction Regarding In-Person, Remote, or Hybrid City Council and Board and Commission Meetings.

MOTION: Council Member Cormack moved, seconded by Council Member Tanaka to defer resumption of in -person hybrid meetings for Standing Committees, and BCC ( Board, Committee, and Commission ) meetings to March.

MOTION PASSED: 6-0, Kou absent
Council Member Questions, Comments and Announcements
None
Adjournment: The meeting was adjourned at 10:21 P.M.

ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes a re prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b) . Summary minutes ( sense) are prepared in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in

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DRAFT ACTION MINUTES

Sp. City Council Meeting
Draft Action Minutes: 12/13/2021
accordance with Ordinance No. 5423 , the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Cou ncil and committee proceedings. These recordings are available on the City’s website.

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DRAFT ACTION MINUTES

Sp. City Council Meeting
Draft Action Minutes: 12/13/2021

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CITY COUNCIL

DRAFT ACTION MINUTES

Regular Meeting
January 3, 2022
The City Council of the City of Palo Alto met on this date in virtual teleconference at 6:00 P.M.

Participating Remotely: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka

Absent: None

Special Orders of the Day

1. Election of the 2022 Mayor.

NOMINATION: Council Member Kou nominated Council Member Burt for Mayor for 2022.

NOMINATION: Council Member Cormack nominated Council Member Kou for Mayor for 2022. Council Member Kou declined the nomination.

NOMINATION FOR COUNCIL MEMBER BURT AS MAYOR FOR 2022
PASSED: 6-1 Tanaka no

2. Election of the 2022 Vice Mayor.

NOMINATION: Council Member Stone nominated Council Member Kou for the position of Vice Mayor for 2022.

NOMINATION FOR COUNCIL MEMBER KOU AS VICE MAYOR FOR
2022: 7-0

3. Adoption of a Resolution Expressing Appreciation for Outstanding Public Service as Mayor to Tom DuBois.

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DRAFT ACTION MINUTES

City Council Meeting
Draft Action Minutes: 1/3/2022
MOTION: Council Member Burt moved by unanimous consent to adopt Resolution 10011 expressing appreciation for outstanding public service as Mayor in 2021 to Tom DuBois.

MOTION PASSED: 7-0

Adjournment: The meeting was adjourned at 8:15 P.M.

ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes a re prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b) . Summary minutes ( sense) are prepared in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423 , the City Council found action minutes and the video/audio recordings of Council proceedi ngs to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.

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City of Palo Alto (ID # 12091)
City Council Staff Report

Meeting Date: 1/10/2022

City of Palo Alto Page 1

Title: Approval of Contract C22181106 with Universal Site Services Inc. for a Total Not-to-Exceed Amount of $1,214,373 Over a Five Year Term for Scheduled and On -Call Steam Cleaning Services at Various City Locations From: City Manager
Lead Department: Pub lic Works

Recommendation
Staff recommends that Council approve and authorize the City Manager or their designee to execute a contract with Universal Site Services Inc. (Contract No. C22181106) in the amount of $1,214,373 over a five-year term for scheduled and on-call steam cleaning services.

Background
To maintain clean and vibrant business districts in Palo Alto, the Public Works Department has historically contracted for high pressure and steam cleaning services on University Avenue and California Avenue sidewalks, King Plaza, Lytton Plaza, Mitchell Park Library and Community Center, Palo Alto Art Center, the Regional Water Quality Control Plant (RWQCP), underpasses, and parking garages.

The frequency of steam cleaning varies, depending on the location. The sidewalks within the Downtown University Avenue area are cleaned once a month year -round; the sidewalks on California Ave nue are cleaned once a month for six months out of the year (May -October); Lytton Plaza is cleaned twice a month year -round; King Plaza and Mitchell Park Library and Community Center are cleaned four times a year ; the RWQCP pathways and loadi ng area are cleaned six times a year ; the underpasses (which include University Ave, Homer Ave, Embarcadero Rd, and California Ave) are cleaned once a month year -round; and lastly, most parking garages are cleaned once a year (in June).

Discussion
The work to be performed under this contract is for high pressure and steam cleaning of all the locations listed above. This contract will also include a complete steam clean of the five parking garages located within the University Downtown Business District (C ivic Center Garage, Lot Q, Lot S/L, Lot R, and Lot J). The ceilings, walls, stairwells , and floors of these garages will be steam cleaned once during the contract term. The new California Avenue Parking Garage will receive similar cleaning twice during the contract term. The Contractor will be required to obtain a 3 Packet Pg. 27

City of Palo Alto Page 2

Recognized Surface Cleaner certification from the Bay Area Stormwater Management Agencies Association, meet Best Management Practices provided by the RWQCP , and follow requirements set forth in the City’s Municipal Code. The Contractor is also required to provide a pollution prevention plan addressing prior to the start of the contract.

The contract with Universal Site Services Inc. is for a five-year term. Work will begin after contract approval, execution and issuance of a Notice to Proceed by the City’s Project Manager.

All steam cleaning work will be performed between the hours of 10:00 p.m. and 7:00 a.m., Thursday through Sunday. The sidewalks located on University Ave that are adjacent to ho tels, apartments, and condominiums will be steam cleaned between the hours of 5:00 a.m. and 7:00 a.m., Thursday through Sunday. Businesses and restaurants in the area will be notified of the steam cleaning work, and staff will work to accommodate any reaso nable concerns, where feasible.

Bid Process
On May 12, 2021, a Request for Quotations (RFQ) for Steam Cleaning Services for both Scheduled and On-Call Services was posted on PlanetBids for a bidding period of 28 days. Bids were received from four contractors on June 9, 2021, as listed on the attached Bid Summary (Attachment A).

Summary of Bid Process
Bid Name/Number
RFQ #181106: Steam Cleaning Services for
both scheduled and On-Call Services
Proposed Length of Project 5 years
Number of Bids Mailed to Contractors 20
Total Days to Respond to Bid 28
Pre-Bid Meeting? Yes
Number of Companies at Pre-Bid Meeting 9
Number of Bids Received 4
Number of Qualified Bids Received: 4
Bid Price Range From a low of $663,700 to a high of
$3,028,750 for the full 5 year term

Staff reviewed the four bids, and all were deemed responsive. Bids ranged from a low bid of $663,700 to a high bid of $3,028,750 for the five year term . The two lowest bidders asked to withdraw their bids in accordance with the Public Contract Code, due to errors in their bids. The requests to withdraw were reviewed, found to comply with statutory requirements, and were thus approved. Staff has reviewed the remaining bids that were submitted and recommends that Universal Site Services Inc. be declared the lowest responsible bidder. The bid is 49 percent above the engineer's estimate of $ 737,974 (see below). While the low bid is significantly higher than the engineer’s estimate, this result is similar to the increase in cost for the street sweepi ng 3 Packet Pg. 28

City of Palo Alto Page 3

contract approved by Council on April 20, 202 0, ID #11012 . The recommended contract with Universal Site Services Inc. contains additional tasks that were not included in the previous contract, such as $117,200 for the steam cleaning of walls, ceilings, floors, etc. for five parking garages (Task 8) , and $15,800 for the cleaning of the new California Ave Parking Garage (Task 9). The proposed pricing in this new contract accounts for these add itional tasks, and the adjustments needed to reflect the inc rease in minimum wage, staff retention, job market competitiveness in the Bay Area, and higher costs to insure and maintain equipment.

Services Location
Previous
Contract
Engineers
Estimate Bid Price
Tasks 1-7 Sidewalks, parking garages (floor only),
underpasses, plazas, and unscheduled Services. $542,125 $623,444 $970,975 Task 8 Parking garages (all interior surfaces, such as
floors, ceilings, walls, etc.) N/A $104,000 $117,200
Task 9 The new California Ave Parking Garage (floor
only). N/A $10,530 $15,800
Total N/A $737,974 $1,103,975

If Council does not approve this contract for steam cleaning, the City will not be able to provide cleaning services required for maintaining cleanliness within our business districts, community centers, sidewalks, garages , plazas and underpasses. The City does not have the resources available to provide these cleaning services itself.

Resource Impact
The contract breakdown according to Funds is provided below. This contract straddles fiscal years. Funding for Tasks 1 -7 of the contract ($194,195) is short by $35,196 in the first year .

Since the second half of the first year falls in Fiscal Year 2023 , this $35,196 in funding will be contingent upon Council approval of the annual budget appropriation for FY 2023. Tasks 1-7 will be completed each year at the same amount totaling $970,975 for all five years. Task 8 ($117,200) and Task 9 ($15,280) of the contract are designated to be completed in the outer years of the contract and will also be dependent upon Council approval of the annual budget appropriation.

Dept Location Tasks 1-7 Task 8 Task 9 Fund
PWD
University downtown
sidewalks, garages and
underpass
$121,055 $117,200 University
Parking Fund
PWD California Ave sidewalk,
garages and underpass $10,310 $15,280 California
Parking Fund
CSD Lytton Plaza and King Plaza $31,600 General Fund
PWD
Mitchell Park Library and
Community Center and Art
Center
$8,080 General Fund
PWD Regional Water Quality Control $1,530 Wastewater
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Plant (RWQCP) Treatment
PWD
Homer and Embarcadero
Underpass, Emergency Services
and Unscheduled Services
$21,620 Refuse Fund

The contract’s total not -to-exceed amount of $ 1,214,373 includes $110,398 for Additional Services (as defined in the contract) that may be needed during the term of the contract. No direct funding is available for the $110,398 Additional Services portion of this contract at present. The intent in granting this Additional Services authority is to make services under this contract available to other departments or for projects that may arise during the contract term, with funding to be identified by the department seeking such services . Any use of the Additional Services provisions is subject to written Task Order approved by the City’s Project Manager, as detailed in the contract.

Stakeholder Engagement
This contract is for steam cleaning services and community engagement was focused on prospective contractors. As noted previously, staff will inform potentially impacted businesses and restaurants in the area when the cleaning are scheduled.

Policy Implications
The recommendation does not represent any changes to existing City policy.

Environmental Review
This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines as repair, maintenance and/or minor alteration of existing facilities and no further environmental review is necessary.

Attachments:
• Attachment3.a: Attachment A: Bid Results PR181106
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Steam Cleaning Services for both Scheduled and On-Call Services RFQ181106

Bid Results:

Bid I Bid II Bid III Total
Superior Pressure Washing $576,000.00 $ 80,700.00 $ 7,000.00 $663,700.00 Withdrawn Webco $914,135.00 $28,523.00 $7,616.00 $950,274.00 Withdrawn Universal Site Services $970,975.00 $ 117,200.00 $ 15,800.00 $1,103,975.00 Zero Turn Power Washing $2,843,250.00 $ 164,000.00 $ 21,500.00 $3,028,750.00

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City of Palo Alto (ID # 13719)
City Council Staff Report

Meeting Date: 1/10/2022

City of Palo Alto Page 1

Title: Adoption of Labor Agreements with 1) Service Employees International Union Hourly (SEIU -H) Unit , 2) Utilities Management and Professional Association of Palo Alto (UMPAPA), and 3) Service Employee International Union (Classification Revision).

From: City Manager
Lead Department: Human Resources

Recommendation
Staff recommends that Council adopt
1) A new Memorandum of Agreement (MOA) between the City of Palo Alto and the Utilities Management and Professional Association of Palo Alto (UMPAPA) effective upon adoption through June 30, 2022.
2) An extension of the existing MOA between the City of Palo Alto and the Service Employees International Union (SEIU-H) hourly unit effective July 1, 2021 through June 30, 2022.
3) Changes to Facilities Carpenter job description (Attachment F) and corresponding SEIU salary schedule (attachment G) consistent with the effective memorandum of agreement with SEIU 521.

Background
As a local public agency, the City of Palo Alto is required under California State law to meet and confer in good faith with its recognized labor organizations to reach agreements regarding wages, hours and other terms and conditions of employment1. The teams of negotiators, including City representatives comprised of outside counsel, Human Resources staff and management representatives, met with labor representatives in good faith and successfully reached a tentative agreement.

As a condition of the SEIU MOA the City accepts reclassification requests from employees once each year from September 10 through October 10. An analysis is done of each reclassification

1 The Meyers-Milias Brown Act (MMBA), adopted in 1968 as Government Code 3500, establishes the legal framework under which the public agency and labor organizations are required to meet and confer in good faith. As defined in the MMBA, the Memoranda of Agreement is a legally binding contract between the parties.

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City of Palo Alto Page 2

request and where warranted, a job description may be updated to reflect changes in duties, services, or technology used. When these changes require or necessitate a change in salary the new salary is brought to council for adoption in alignment with the City Charter, Municipal code, and CalPERS requirements.

Discussion
In March of 2021 the City approached its labor groups about extending their contracts. With the uncertain fiscal situation surrounding our region the City sought to extend contracts for 12 months and hold employee costs flat during that period. Below is a summary of the actions recommended in this report:

SEIU-H:

The SEIU-H group agreed to an extension and holding costs flat for an additional 12 months, putting their new contract expiration at June 30, 2022. This was adopted by Union membership in August and is now subject to council adoption, along with other related labor items.

UMPAPA:

UMPAPA and the City engaged in “narrow scope” bargaining, which means the items of discussion were limited. Items were prioritized to key administrative changes in alignment with the Utilities strategic plan and organization structure changes. The result of that narrow scope bargaining is the 12-month agreement for Council approval that holds compensation flat and makes the necessary changes to be in alignment with a re-organization of Utilities staff. These actions position the Utilities department to improve recruitment and will provide better benchmarking of the job market in which we are competing. During the term of this agreement the parties will conduct a comprehensive market analysis to determine if positions within the City’s Utilities are keeping pace with the competitive market. This analysis will allow the City to adjust where needed and tailor the compensation package to meet the interests of this limited labor pool.

SEIU Classification Amendments:

Pursuant to the MOA with SEIU 521, the parties annually review requested classification for updating and revision. During this process the parties agreed that the current carpenter job description required revision and internal alignment to a similarly situated SEIU classification (Facilities Technician). In conjunction with the changes to the job description, the Facilities Carpenter hourly rate from top step of $45.71 per hour to $47.51. This will be implemented as soon as administratively feasible following adoption by council and effective consistent with the attached resolution.

Resource Impact
Adoption of the new MOA with UMPAPA and extension of the SEIU-H contract results in no increased costs to the General Fund or Enterprise Funds, as both contracts maintain flat salaries (0% increase) for the one-year terms for both groups.

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City of Palo Alto Page 3

The new job description and salary for the facilities carpenter classification will have an annual budget impact of approximately $5,500. For FY22, impacts can be absorbed within the existing budget allocation to Public Works and no action is requested. For future budgets this new salary and cost will be included as part of the proposed budget.

Policy Implications
This contract is consistent with the City’s Guiding Labor Principles adopted by Council on April 9, 2012.

Environmental Review
Approval of a contract with MOA affecting the wages, hours and working conditions of City employees is not a project under the California Environmental Quality Act (CEQA).

Attachments:
• Attachment4.a: Attachment A: SEIU-H Tentative Agreement 2021-2022 • Attachment4.b: Attachment B: SEIU-H Side Letter Agreement • Attachment4.c: Attachment C: UMPAPA draft MOA 21-22 Redline Changes • Attachment4.d: Attachment D: UMPAPA Appendix A Salary Schedule 2021-2022 • Attachment4.e: Attachment E: SEIU Agreement, Carpenter Reclassification • Attachment4.f: Attachment F: SEIU Updated Carpenter Job Description • Attachment4.g: Attachment G: SEIU Salary Schedule 2019 - 2021 Amended

1.3.2022 - Facilities Carpenter Classification
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TENTATIVE AGREEMENT
Proposed Letter of Agreement
City of Palo Alto and SEIU Local 521
Hourly Employee Unit

July 1, 2021 – June 30, 2022

DocuSign Envelope ID: 9602E5A3-8EEF-4513-846D-7289DF649EA3

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TENTATIVE AGREEMENT
I. Introduction and MOA Side Letter
In early 2020, the City of Palo Alto (City) and the Nation were impacted by the COVID-19 health pandemic. The COVID-19 pandemic impacted the City’s economy at every level. Both the City and the Service Employees International Union Local 521 (Union) have a mutual interest in extending the current Memorandum of Agreement (MOA) for one (1) additional year with the two (2) limited changes to the MOA which are listed below in Article VI Pay and Article XXV Term.

II. Article VI Pay
During the term of this extension, the parties agree that there will be no base salary rate increases. The salaries set forth in Appendix B of the MOA, effective 07/01/2020, will remain in place for the term of the one (1) year extension.

III. Article XXV Term
The Parties agree to amend Article XXV (“Term”) of the current MOA to extend the term for one (1) additional year, for an expiration date of June 30, 2022.

For the Union: For the City:

Bunny Bornstein, Chief Steward Date Nick Raisch, Manager ER/LR Date

Aileen Vlahakos , Worksite Organizer Date

DocuSign Envelope ID: 9602E5A3-8EEF-4513-846D-7289DF649EA3 6/9/2021
6/10/2021
6/7/2021

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Proposed Letter of Agreement
City of Palo Alto and SEIU Local 521
Hourly Employee Unit

July 1, 2021 – June 30, 2022

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I. Introduction and MOA Side Letter
In early 2020, the City of Palo Alto (City) and the Nation were impacted by the COVID-19 health pandemic. The COVID-19 pandemic impacted the City’s economy at every level. Both the City and the Service Employees International Union Local 521 (Union) have a mutual interest in extending the current Memorandum of Agreement (MOA) for one (1) additional year with the two (2) limited changes to the MOA which are listed below in Article VI Pay and Article XXV Term.

II. Article VI Pay
During the term of this extension, the parties agree that there will be no base salary rate increases. The salaries set forth in Appendix B of the MOA, effective 07/01/2020, will remain in place for the term of the one (1) year extension.

III. Article XXV Term
The Parties agree to amend Article XXV (“Term”) of the current MOA to extend the term for one (1) additional year, for an expiration date of June 30, 2022.

For the Union: For the City:

Bunny Bornstein, Chief Steward Date Ed Shikada, City Manager Date

Aileen Vlahakos , Worksite Organizer Date Rumi Portillo, HR Director Date

Molly Stump, City Attorney Date

Nicholas Raisch, ER Manager Date

Tori Anthony, Sr. HR Administrator Date

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Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 202119 to June 30, 20220

1 CITY OF PALO ALTO
Memorandum of
Agreement
City of Palo Alto and Utilities Management and
Professional Association of Palo Alto

Effective dates:

July 1, 202119 – June 30, 20220

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Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 202119 to June 30, 20220

2 Contents
PREAMBLE................................................................................................................................. 43 ARTICLE I – RECOGNITION ................................................................................................. 43 ARTICLE II – NO DISCRIMINATION................................................................................... 43 ARTICLE III – PAYROLL DUES DEDUCTION ................................................................... 43 ARTICLE IV – WORK STOPPAGE AND LOCKOUTS....................................................... 43 ARTICLE V – CITY RIGHT TO MANAGE ........................................................................... 43 ARTICLE VI – COMPENSATION .......................................................................................... 54 Section 1 – Job Families and Salary Schedule .......................................................................... 54 Section 2 – Base Salary Increases ............................................................................................. 54 Section 3 – Market Based Adjustments ..................................................................................... 64 ARTICLE VII – HEALTH BENEFITS .................................................................................... 65 Section 1 – Group Insurance ..................................................................................................... 65 Article VIII – DEFERRED COMPENSATION MATCH .................................................... 108 ARTICLE IX – LEAVES.......................................................................................................... 109 Section 1 – Sick Leave ............................................................................................................ 109 Section 2 – Management Annual Leave .................................................................................. 119 Section 3 – Vacation .............................................................................................................. 1110 Section 4 – Bereavement ....................................................................................................... 1211 Section 5 – All Other Leaves ................................................................................................. 1211 Section 6 – Vacation Benefits for Deceased Employees ....................................................... 1211 Section 7 – Voluntary Leave Program .................................................................................. 1211 ARTICLE X – WORKERS’ COMPENSATION ................................................................. 1211 Section 1 – Employees unable to work due to occupational injury, illness or disease ......... 1211 Section 2 – Temporary Disability .......................................................................................... 1211 ARTICLE XI – RETIREMENT PENSION ......................................................................... 1312 ARTICLE XII – MISCELLANEOUS ................................................................................... 1413 Section 1 – Reimbursement for Relocation Expense ............................................................ 1413 Section 2 – Meal allowance ................................................................................................... 1413 Section 3 – Reduction in Workforce ..................................................................................... 1413 Section 4 - Contracting Out ................................................................................................... 1513 Section 5- Association Security ............................................................................................. 1514 Section 6- Notification to the Association ............................................................................. 1514 Section 7- Association Representative Access to Work Locations ....................................... 1614 Section 8- Release Time ........................................................................................................ 1615

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Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 202119 to June 30, 20220

3 Section 9- Personnel Files ..................................................................................................... 1615 ARTICLE XIII – GRIEVANCE PROCEDURE .................................................................. 1615 Section 1 - General Provisions .............................................................................................. 1615 Section 2 – Definitions .......................................................................................................... 1615 Section 3 - Conduct of Grievance Procedure ........................................................................ 1615 Section 4 - Grievance and Appeal Procedure ........................................................................ 1716 ARTICLE XIV – FULL UNDERSTANDING ...................................................................... 1817 Section 1 – Full Understanding ............................................................................................. 1817 Section 2 – Severability ......................................................................................................... 1817 Section 3 – Good Faith .......................................................................................................... 1817 Section 4 – Mid-Contract Negotiations ................................................................................. 1917 Section 5 – Merit System....................................................................................................... 1918 ARTICLE XV-DURATION ................................................................................................... 1918

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Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 202119 to June 30, 20220

4 PREAMBLE

This memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the “City”, and the Utilities Management and Professional Association of Palo Alto (UMPAPA), hereinafter referred to as the “Association” or “UMPAPA”, has been prepared and entered into in accordance with Title I, Division 4, Sections Chapter 10, 3500-3510 of the California government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations.

ARTICLE I – RECOGNITION

The City recognizes the Association as the exclusive representative of employees occupying positions in the bargaining unit certified by the City in accordance with the decision of Arbitrator Kagel dated April 13, 2011.

ARTICLE II – NO DISCRIMINATION

The Association and the City hereby agree that there shall be no discrimination because of race, color, age, handicap, sex, national origin, sexual or gender orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non -membership in the Association, or participation in the lawful activities of the Association.

ARTICLE III – PAYROLL DUES DEDUCTION

The City shall deduct Association member dues, and any other mutually agreed upon payroll deduction from the bi-weekly pay of bargaining unit employees. The dues deduction must be authorized in writing by the employee on an authorization form acceptable to the City and to the Association. City shall remit the deducted dues to the Association as soon as possible after deduction.

ARTICLE IV – WORK STOPPAGE AND LOCKOUTS

The Association, its representatives or members shall not engage in or cause, instigate, encourage, sanction or condone a work stoppage or sympathy work stoppage, withholding of services, leave of absence abus e or work slowdown of any kind against the City of Palo Alto or its citizens by its members during the term of this MOA. No Association member shall refuse to cross any picket line in the conduct of the Utility business, nor shall the Association, its rep resentatives or members discriminate in any way towards anyone who refuses to participate in a work stoppage or any of the job actions cited above. The City agrees that it will not lock out Association members.

ARTICLE V – CITY RIGHT TO MANAGE

The City retains and reserves, without limitation, all powers, rights, authority, duties, and responsibilities to manage the City as stated in the City Merit Rules, Chapter 12, Section 1207(d).

Nothing in this Agreement is to be interpreted as constituting a waiver of the City’s rights and responsibilities to manage the City and create and maintain programs and services that reflect its public's wishes. The intent of this MOA is to establish wages, working hours, and conditions of employment with the Association.

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Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 202119 to June 30, 20220

5 ARTICLE VI – Compensation

Section 1 – Job Families and Salary Schedule

Effective the first full pay period following adoption of this Memorandum by Council, all salaries of covered classifications shall be as listed in Appendix A.

Appendix A shall clearly outline benchmark classifications for future total compensation surveys and for the purposes of internal alignment of the Association job families and career paths.

The parties agree to continue a jointly-staffed benchmark committee. All recommendations or research conducted by the committee will be included in the next bargaining process.

Section 2 – Base Salary Increases

Effective the first full pay period following adoption of this Memorandum by Council, the salary schedule in Appendix A will be increased by three (3%) percent for all positions except those positions listed in Appendix A as aligned to the Management and Professional group.

During the term of this agreement there will be no base salary increase (0%).

For the purpose of reference and discussion the parties may bring whichever relevant data points are available, but both agree that the United States Bureau of Labor Statistics “BLS” provides the most widely accepted and utilized data for determining the cost of living for a given region. The BLS is intended to provide a single source of information regarding inflationary impacts within the local economy. The BLS data does not obligate the City or the Association to propose or agree to any base salary adjustments.

The methodology for implementing base salarythese increases will be to:
a) Increase the top and bottom of the salary range of the benchmarked positions within each job family by the above listed base salary increase, while maintaining a 25% differential between the top and bottom of the selected salary range of three zero (03%) percent; then b) Adjust the salary range of the linked positions within each job family based on their differential from the benchmarked position.
c) Each individual’s base salary will be increased by the same percentage that was applied to their position’s salary range in a) or b) above.
d) If an individual’s salary would be reduced based on the implementation of the new salary schedule, then that employee will remain at their current salary until a time when the listed salary is equal to their current pay.
d)e) For the purposes of this contract only, in implementing changes to the salary range individuals below the new salary minimum will be brought up to the new minimum.

Should the City of Palo Alto Management and Professional group receive an increase to base salary during

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6 the term of this Agreement, those positions listed in Appendix A as aligned to the Management and Professional group will receive the same increase to base salary afforded to the corresponding positions.

This increase to UMPAPA positions would be effective on the same date of the increases to the Management and Professional group.

Section 3 – Market Based Adjustments

Within the Term of this Agreement, the The City will conduct a total compensation study of UMPAPA Benchmarked positions based on the following agencies:twelve (12) Cities:

Alameda
Anaheim
Burbank
East Bay MUD
Long Beach
Mountain View
Pacific Gas and Electric
Redwood City
Roseville
Sacramento MUD
San Jose
Santa Clara

Silicon Valley Clean Energy
Sunnyvale

The City’s total compensation study will include a geographic adjustment for cities agencies which are outside of the immediate region. Those cities agencies receiving a geographic adjustment are: Anaheim, Burbank, Long Beach, Sacramento MUD and Roseville. For the purposes of recruiting and retaining employees within the Utility market place, the parties will add to the survey universe data from Pacific Gas and Electric (PG&E) Bay Area region where data can be found. For the term of this agreement, where PG&E data cannot be verified or acquired the parties agree to include an above-median comparator for the purposes of determining calculating benchmarks.

The City’s survey is intended to provide a single source of information regarding compensation paid to bargaining unit employees and its comparison to compensation paid by other entities. The survey data does not obligate the City or the Association to propose or agree to any market- based adjustments. The next total compensation study will be started 180 days prior to expiration of this agreement.

ARTICLE VII – HEALTH BENEFITS

Section 1 – Group Insurance

a) Effective Date of Coverage
For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, long term disability and life insurance plans if these benefits are elected. Effective on the first of the calendar month falling sixty (60) days after adoption of this MOA, City health premium contributions (medical, dental and vision) will be prorated for part -time employees based on the number of hours per week the part-time employee is assigned to work. Until that time, part- time employees will remain subject to the practice in effect at adoption of this MOA. b) Active Employee Health Coverage

During the term of this MOA, the maximum City contribution towards medical premiums for eligible full Commented [RN1]: Agreement to title changes that clearly delineate these classifications as solely in UMPAPA.

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7 time employees per employee category shall be up to a maximum of the following for any plan:

Medical Premium
Category
Maximum City
Contribution
Effective Jan 1, 2021
EE only $871
EE plus one $1742
EE plus family $2260

For the duration of this MOA if the PEHMCA Minimum charges increase they will be included in the City’s maximum contribution and will not result in an increase to the City’s maximum contribution rates. c) Coverage for Domestic Partners.

1. 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.

2. Domestic Partner Not Registered with the California Secretary of State:; Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership , and are registered with the Human Resources Department, will be eligible for a stipend of two hundred and eighty four dollars ($284) per month toward the cost of an individual health plan . Evidence of premium payment will be required with request for reimbursement. d) Alternative Medical Benefit Program

If a regular employee and/o r the employee’s dependent(s) are eligible for medical insurance through another employer -sponsored or association medical plan, the employee may opt for alternative medical insurance coverage through the other employer -sponsored or association plan and wa ives his/her right to the City of Palo Alto’s medical insurance coverage for same individuals. Employees waiving City coverage may receive a stipend of $284 per month.

e) Retiree Health Plan
a. Employees Hired Prior to January 1, 2004
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.

The City's contribution for an employee hired before January 1, 2004 and whose retirement date is on or after May 1, 2011 shall be the same contribution amount it makes from time to time for active City employees.

b. Post - 1/1/04 Hires
Government Code section 22893 applies to those Unit members hired after January I, 2004, and provides that, upon retirement from the City an employee is eligible for 50% of the specified employer health premium contribution after ten (10) 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 service credit year increases the employer contribution percentage by 5% until, at twenty (20) years' service credit; the employee will be eligible upon retirement for 100% of the specified employer contribution and 90% of the Formatted Table

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8 contribution for their dependent coverage. The City of Palo Alto's health premium contribution for eligible post - 1/1/04 hires shall be the minimum contribution set by PERS under section Government Code section 22893.

c. For employees hired prior to January 1, 2004 who wish to opt in to Government code section 22893. The City will offer a 90 calendar day period following adoption of this agreement by Council, in which employees hired prior to January 1, 2004 will have the opportunity to opt in to Government code section 22893.

f) Dental Plan

1. The City shall pay covered plan charges on behalf of all eligible employees and dependents.

Dependents include eligible domestic partners as defined in Section 1 subsection c of this Article VII, Health Benefits.

2. The City’s Dental Plan provides the following:
a. Maximum Benefits per Calendar Year- $2,000 per person b. Lifetime Maximum for Orthodontics- The City will pay up to $2,000.00 for orthodontia coverage (not included in annual dental maximum)
c. Major Dental Services 50% UCR*
d. Orthodontics 50% UCR*
e. Basic Benefits (All other covered services)
i) First Calendar Year of Eligibility 70% UCR*
ii) Subsequent Calendar Years 70%-100%
iii) *Usual, Customary, and Reasonable
iv) For each dental plan member, the percentage of coverage for basic benefits will begin at 70% for the first calendar year of coverage and increase by 10% (up to a maximum of 100%) effective the first day of the next calendar year as long as the member utilizes the plan at least once during the current year. Per the Delta Dental contract effective October 1, 2005, if the member does not use the plan during the current year, the percentage of coverage for the next calendar year shall remain unchanged from the current year.
v) If a dental plan member loses coverage under the plan, the applicable percentage of coverage for basic benefits provided during any future period of coverage will commence at 70% as if the dental plan member was a new enrollee. Examples of when a member might lose coverage under the plan include:
• Employee goes on an unpaid leave of absence and elects not to pay the required dental premiums for his/her family’s coverage during the leave. • Employee elects to drop one or more covered dependents from the plan during an open enrollment period so that they might be covered on a spouse’s non-City of Palo Alto dental plan.

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9 g) Vision Care

1. The City shall provide vision care coverage for employee and dependents. Coverage is administered by Vision Service Plan (VSP). The plan will provide an exam every 12 months; lenses every 24 months; frames every 24 months, all subject to a twenty dollar ($ 20) co - payment as defined in the Vision Services Benefits Plan A schedule.

2. Dependents include eligible domestic partners as defined in Section 1, Subsection c of this Article VII, Health Benefits.

h) No dual coverage for dental and vision benefits. When a City employee is married to or has a registered domestic partner with the California Secretary of State with another City employee, each shall only be covered once. (as an individual or as a spouse of the other City employees, but not both) and dependent children, if any, shall be covered by only one spouse.

i) Basic Life Insurance
The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no -cost to the employee. AD&D pays an additional amount equal to the employee’s annual basic pay (rounded to the next highest $1,000).

j) Supplemental Life And AD&D Insurance
An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage equal to one- or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000.
k) Long Term Disability Insurance

The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of ten thousand dollars ($10,000) per month. The LTD plan will have a waiting period of sixty days, as provided by the applicable carrier agreement. The City shall pay the premium for the first six thousand dollars ($6,000) of base monthly salary. For employees whose base monthly salary exceeds six thousand dollars ($6,000), the employee shall pay the cost of the required premium based upon their monthly salary between six thousand dollars ($6,000) and fifteen thousand dollars ($15,000).
l) Employee Assistance Plan
The Employee Assistance Plan (EAP) provides employees with confidential personal counsel ing, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by

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10 experienced clinicians is available to employees and their dependents by calling a toll -free phone line twenty-four (24) hours a day, seven days a week. Guidance is also available online.

Article VIII – Deferred Compensation Match

Effective January 1, 2019 the City will match employee contributions into their City approved 457 plans up to a maximum of $4000. No combination of Employee and Employer funds can exceed the IRS limits for City approved 457 plans. The table below is for illustrative purposes only:

Employee Contribution Employer Matching Contribution
$1,000
$2,500
$1,000
$2,500
$4,000 $4,000
$11,000 $4,000

ARTICLE IX – LEAVES

Section 1 – Sick Leave
a) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi -weekly pay period for those employees working a forty-hour duty schedule. Those assigned work schedules, which are greater or lesser than forty hours will accrue sick leave at the ratio o f their work schedule to forty hours.

b) Employees may use up to twenty hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management.

c) Employees leaving the munici pal service shall forfeit all accumulated sick leave, except as otherwise provided by law and by Section 609 of the Merit Rules and Regulations. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice.

d) Employees that were hired before December 1, 1983 and who leave the municipal service in good standing, or who die while employed in good standing by the city, and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their basic hourly rate of pay at termination. Full s ick leave accrual will be paid in the event of termination due to disability. See Merit System Rules and Regulations, Chapter 6, Section 609.

e) Up to nine days of sick leave per calendar year may be used for illness in the immediate family, including a registered domestic partner.

f) Employees eligible, as specified above if hired before December 1, 1983, to be compensated for sick leave may annually convert sick leave hours in excess of 600 to cash or deferred compensation, according to the formula set forth above, up to a maximum of $2,000 per fiscal year.

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11 Section 2 – Management Annual Leave
At the beginning of each calendar year designated exempt employees will be credited with 80 hours of management annual leave. This leave is granted in recognition of the extra hours exempt employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is taken under this provision, 10-hour shift workers will receive one shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal year; employees who have used more than the pro -rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the calendar year will be paid in cash unless a different option as indicated above is elected by the employee.

Section 3 – Vacation
Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status:

a) Less than nine years. For employees completing less than nine years continuous service: 120 hours vacation leave per year; provided that:

The City manager is authorized to adjust the annual vacation accrual of employees hired on or after July 1, 2001, to provide up to 40 additional hours (i.e., to a maximum annual accrual of 160 hours) for service with a prior employer.

b) Nine, but less than fourteen years. For employees completing nin e, but not more than fourteen years continuous service; 160 hours vacation per year.

c) Fourteen, but less than nineteen years. For employees completing fourteen, but not more than nineteen years continuous service; 180 hours vacation leave per year.

d) Nineteen or more years. For employees completing nineteen or more years continuous service; 200 hours vacation leave per year.

e) Employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided the employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section.

Employees must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out.

The election to cash -out vacation hours in each designat ed year will be irrevocable. This means that employees who elect to cash -out vacation hours must cash -out the number of accrued hours pre - designated on the election form.

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12 Employees who do not elect a cash -out amount by December 31 of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. Employees who elect cash-out amounts may request a cash-out at any time in the designated tax year by submitting a cash -out form to payroll. Payroll will complete the cash -out upon request, provided the requested cash -out amount has accrued and is consistent with the amount the employee pre -designated. If the full amount of hours designated for cash-out is not available at the time of cash -out request, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of each year, Payroll will automatically cash-out the elected amount, or the maximum available amount, in a paycheck issued on or after the payroll date including November 1.

Section 4 – Bereavement
Leave of absence with pay of three days may be granted to an employee by the head of his/her department in the event of death in the employee’s immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, step-son, daughter, daughter-in-law, step-daughter, mother, mother-in-law, father, father -in-law, brother, brother -in-law, sister, sister -in-law, grandmother, grandmother -in-law, grandfather, grandfather-in-law, grandchild, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of employee. Such leave shall be at full pay and shall not be charged against the employee’s accrued vacation or sick leave. Requests for leave in excess of three days shall be subject to the approval of a Council-Appointed Officer for employees under his/her control.

Section 5 – All Other Leaves
For all other leaves of absence refer to Chapters 5 and 8 of the City’s Merit Rules and Regulations.

Section 6 – Vacation Benefits 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 the employee's estate within thirty days. This proration will be computed at the last basic rate of pay.

Section 7 – Voluntary Leave Program
If permitted by agreement between the City and the Association, members of the Association may participate in the "Voluntary Leave Program" to assist in maintaining the pay of an employee who is eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- Association agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law).

ARTICLE X – WORKERS’ COMPENSATION

Section 1 – Employees unable to work due to occupational injury, illness or disease Employees unable to work due to occupational injury, illness or disease will be required to report to management to discuss his or her status and ability to return to work on restrict ed or unrestricted duty, subject to the limitations imposed by applicable law. This requirement is not meant to unreasonably restrict employee’s activities while off work due to such incapacity as long as such activities are cleared by the treating physician, treating program or alternative treatment program and the employee is available for restricted or unrestricted duty as soon as medical clearance can be received.

Section 2 – Temporary Disability
While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days

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13 following the date of injury and thereafter shall be paid full base salary for a period not to exceed fifty-seven (57) calendar days (including Saturdays, Sundays and Holidays), unless hospitalized, i n which case employees shall be paid full base salary for a period not to exceed sixty (60) days from date of injury.

For any temporary disability continuing beyond the time limits set forth above, employees shall be paid two- thirds (66.66%) of their full base salary at the time of injury for the duration of such temporary disability in conformance with State law.

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 and vacation and sick leave benefits shall continue to accrue. In case of temporary disability beyond the time limits set forth above, sick leave and vacation benefits shall not be accrued.

ARTICLE XI – RETIREMENT PENSION

a) Employees hired before July 17, 2010

1. Retirement formula. Effective pay period inclusive of 1/6/07, the City’s Public Employees’ Retirement System (PERS) benefits changed to the 2.7%@ 55 formula for non-safety members (from 2% @55).

2. Employee contributions. Employees under the 2.7%@55 retirement formula will pay the full eight percent (8%) employee contribution.

3. Final compensation. Final compensation for purposes of retirement shall be as set forth in the City’s contract with CalPERS, including, when applicable, the Government Code Section 20692 Optional Benefit.

b) Employees hired on or after July 17, 2010.

1. Retirement formula. For miscellaneous employees hired on or after July 17, 2010, or on or after January 1, 2013 who are not subject to the pension formula in the Public Employees’ Pension Reform Act (PEPRA), the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60).

2. Employee contributions. Employees under the 2%@60 retirement formula will pay the full seven percent (7%) employee contribution.

3. Final compensation. Final compensation for purposes of retirement shall be a s set forth in the City’s contract with CalPERS, including, when applicable, the Government Code Section 20692 Optional Benefit or as required by law.
c) New Employees hired on or after January 1, 2013

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14 Employees hired on or after January 1, 2013 who are “new members” as defined by the California Public Employees’ Pension Reform Act (PEPRA), will be subject to the terms of that statute including but not limited to the following provisions:

1. Retirement formula. Effective for employees hired on or after January 1, 2013, the PEPRA requires the City to provide new employees, as defined in that law, the CalPERS retirement formula two percent of final salary at age 62 (2%@62).

2. Employee contributions. Employees under the 2%@62 formula shall pay at least 50 percent of the total normal cost or the same contribution rate as “similarly situated” employees, whichever is higher.

3. Final compensation. Final compensation for employees under the 2%@62 benefit shall be as set forth in PEPRA, including calculation based on the average of three highest consecutive years and a cap on pensionable compensation (currently $136,440) based on IRS limits for employers that do not participate in social security.
d) Effective as soon as administratively feasible but no sooner than the first full pay period of March 2019, bargaining unit employees shall contribute 1% of their salary toward the employer cost of retirement.

Pensions Group Pension
Formula
Employee Contribution Contribution to
Employer Side
Total Contribution
from Employees
Group A 2.7@ 55 8% 1% 9%
Group B & C 2@60 7% 1% 8%
Group D 2@62 50% of the normal Cost
(Currently 6.25%)
1% Will fluctuate
(Currently 7.25%)
e) Employee CalPERS contributions tax deferred. Employee CalPERS contributions shall be made on a tax deferred basis, in accordance with Section 414(h)(2) of the Internal Revenue Code. All provisions of this subsection are subject to and conditioned upon compliance with IRS regulations.

ARTICLE XII – MISCELLANEOUS

Section 1 – Reimbursement for Relocation Expense
The City of Palo Alto, in rare instances, may, provide a Basic Relocation Benefits Package for new employees, upon the approval of the City Manager or designated subordinate. In addition, the provision of “Optional Benefits”, or portions thereof, may be extended for exceptional circumstances and only by approval of the City Manager or designee. The details of the Relocation Expense program are specified in the City’s Relocation Expense policy.

Section 2 – Meal allowance
Employees assigned to attend night meetings or who travel for business purposes are eligible to receive reimbursement as described by City policy. This provision covers only receipted meals actually taken and submitted for reimbursement.

Section 3 – Reduction in Workforce

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15 The City will make every effort to provide written notice of its intent to lay off employees in this unit and will meet with Association upon request to discuss alternatives to layoff.

Section 4 - Contracting Out

a. As provided in subsection b, the City shall provide notice of any planned action(s) that would result in the layoff of one or more Association bargaining unit members and where either of the following apply:

1. The planned City action(s) is to contract out work historically and exclusively performed by Association bargaining unit members;

2. The planned City action is to substantially increase the scope or amount of work historically but not exclusively performed by Association bargaining unit members (e.g. work shared with other City employees outside the Association bargaining unit or contractors).

b. The City shall deliver written notice to the Association at least thirty (30) days before it implements any action(s) described in subsection a. Within seven (7) days after it receive s such notice , the Association may deliver to the City’s Chief People Officer a written request to meet and discuss the effects of the City action(s). After the City’s receipt of such request, the parties will promptly meet and undertake discussions. The discussions will conclude no later than the thirtieth (30th) day following the UnionAssociation’s receipt of the City’s notice of the planned action(s), as described above. Thereafter, the Ci ty may implement the action(s) without further discussion as originally planned or as modified as a result of such discussions. If the Association does not deliver timely notice of its desire to meet and discuss the effects of the action(s) identified in the City’s notice, the City may proceed with the planned action(s).

c. The City retains its right to determine the methods, means, and personnel by which services are carried out at its sole discretion in circumstances no covered by subsection a above.

Section 5- Association Security
a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Association and give the employee a current copy of the Memorandum of Agreement. b) Members of the Association Board may use a reasonable amount of on-duty time without loss of pay to meet with the City specifically related to representation of employees.

For purposes of this section, representation shall include:
(i) Meetings with represented employees or the City related to a grievance or disciplinary action, including investigation and preparation time.
(ii) Any meeting with the City related to benefits, working conditions or other terms and conditions of employment.

Section 6- Notification to the Association
The Association shall be informed in advance in writing by the City 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.

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16 Section 7- Association Representative Access to Work Locations Employee and nonemployee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum of Agreement, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs.

Section 8- Release Time
The Association Chair, Vice-Chair or his or her-designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary

Section 9- 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 Association representatives. An employee shall be allowed, copies of materials in an employee's personnel file.

ARTICLE XIII – GRIEVANCE PROCEDURE

Section 1 - General Provisions
The City and the UnionAssociationAssociation recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of UnionAssociationAssociation grievances as provided for below. In presenting a grievance the aggrieved and/or his or her representative is assured freedom from restraint, interference, coercion, discrimination or reprisal.

Section 2 – Definitions
Grievance means an unresolved complaint or dispute regarding the interpretation or application of this Memorandum of Agreement, 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.

Section 3 - Conduct of Grievance Procedure

a) An aggrieved employee may be represented by the UnionAssociationAssociation or may represent himself/herself in preparing and presenting a grievance at any level of review. No grievance settlement may be made in violation of an existing merit rule or memorandum of agreement.

b) An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance. Requests for release time to prepare grievances shall be made in advance and approved by the immediate supervisor.

c) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the UnionAssociationAssociation and the reviewer concerned.

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17 d) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step.

e) The grievance shall be considered settled if the decision of any step is not appealed within the specified time limit.

f) Grievances shall be made in writing and submitted on forms provided by the City. The written grievance shall contain clear, factual and concise language, including: (1) the name of the grievant; (2) a statement of the facts upon which the grievance is based, including relevant dates, times and places; (3) specific provisions of this Agreement the grievant alleges has been violated; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance.

g) Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance was filed in writing.

h) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays.

i) If a mutually agreed solution is reached during any step of this grievance procedure, the agreement shall be placed in writing and signed by the City and the grievant or unionAssociation.

j) Upon request of either party, meetings to discuss the grievance shall be held at any step in the grievance 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 is based the aggrieved employee shall present the grievance action to his or her immediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level.

Step II. Formal Grievance
If the grievance is not resolved through the informal discussion in Step 1 the employee will reduce the grievance to writing and submit copies to the Department head or his or her designee within fifteen (15) working days of the discussion with the immediate. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance to review the matter and prepare a written statement.

Step III. Human Resources Director
If the grievance is not resolved and/or the aggrieved employee is not satisfied with the Step II decision, the grievant 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, 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.

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Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 202119 to June 30, 20220

18 Step IV. City Manager /Arbitration
If the grievance is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with UnionAssociation 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 resolution by the City Manager, the City Manager will choose the methods he or she considers appropriate to review and settle the grievance. 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. 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. 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. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the UnionAssociation. All direct costs emanating from the arbitration procedure shall be paid in full by the party in which the decision was found against.

ARTICLE XIV – FULL UNDERSTANDING

Section 1 – Full Understanding
The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein.

Section 2 – Severability
If, at the conclusion of any applicable appeals, any provision of this Memorandum of Agreement is ultimately held invalid and unenforceable by a decision of the relevant Court or Administrative Agency of competent jurisdiction such holding shall apply only to the provision(s) of this Memorandum of Agreement specified in the decision. Such decision shall not invalidate any other portion of this Memorandum of Understanding, and the unaffected provisions shall remain in full force and effect. The Parties agree that within ten (10) days after the date of such decision, they shall meet and confer in an effort to negotiate a substitute for the invalidated provision(s).

Section 3 – Good Faith
Ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement that regulate matters within the scope of representation shall, to the extent they are within the scope of representation, be administered in good faith.

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Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 202119 to June 30, 20220

19 Section 4 – Mid-Contract Negotiations
Subjects within the scope of represent ation that are not covered by this Memorandum of Agreement remain subject to the duty to meet and confer in good faith on timely notice and request. Neither party is obligated to meet and confer over matters within the scope of representation covered by this Memorandum of Agreement, except for purposes of negotiating over the terms of a successor to this Memorandum of Agreement.

Section 5 – Merit System
Merit System Rules and Regulations, during the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties ag ree to review, and upon request, meet and confer regarding the changes.

ARTICLE XV-DURATION
This Memorandum of Agreement shall become effective once the Memorandum of Agreement is signed by the parties hereto and adopted by the City Council. This Memoran dum of Agreement shall remain in effect through June 30, 20220. At the request of either party negotiation of a successor agreement shall commence, however they should begin no sooner than 6 months prior to expiration of this agreement and no later than 3 months prior to the expiration of this agreement.

For the City: For the Association:

Ed Shikada, City Manager Jim Bujtor, UMPAPA President

Rumi Portillo, Human Resources Director Richard Baptist, UMPAPA Vice President

Nick Raisch, Manager Employee Relations Tom Auzenne, UMPAPA Negotiator

Tori Anthony, Sr. HR Administrator Mike Mintz, UMPAPA Negotiator

Alan Davis, UMPAPA Outside Counsel

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Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 202119 to June 30, 20220

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Appendix A SALARY SCHEDULE
0 Note 1: *BM stands for Benchmark and is associated with the selected classification that establishes increases for a given job family Note 2: **These classification are aligned to Management and Professional group due to matching classification Current
Differential to BM* Benchmarked Position Aligned Positions Max Salary Operations

31.00% AD Operations $ 234,888.74

15.00% Electric Operations Mgr WGW Operations Mgr $ 206,200.04 BM Utilities Supervisor $ 179,304.38
-25.00% Utl Safety Officer $ 134,478.29
Resource Planning

31.00%

AD Resource Planning

$ 247,267.80
BM Senior Resource Planner $ 188,754.05
-10.00% Telecom Manager $ 169,878.64
-10.00% Manager UPS $ 169,878.64
Engineering

31.00% AD Engineering $ 253,273.35

15.00% Electric Engineering Manag WGW Engineering Manager $ 222,339.20 BM Senior Electrical Engineer $ 193,338.43

0.00% Compliance Mgr $ 193,338.43

0.00% Senior Engineer $ 193,338.43
-10.00% Supv Proj Engineer $ 174,004.59
-10.00% Supv Proj Elec Engineer $ 174,004.59
Customer Support Services

31.00%

AD Customer Support

$ 222,291.36
BM Manager Customer Service Manager Utl Credit Collections $ 169,688.06 Administrative

31.00%

Utl Strategic Business Mgr

$ 209,253.82
BM Mgr Communications $ 159,735.74
Aligned to M&P** Principal Business Analyst $ 176,508.80 Aligned to M&P** Senior Business Analyst $ 154,107.20
Aligned to M&P** Senior Management Analyst
Aligned to M&P** Administrative Assistant $ 93,017.60

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Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 202119 to June 30, 20220

1 Appendix B

This agreement does not resolve and is without prejudice to compliance with a final decision by PERB in case No. SF-CE-1413. This paragraph is not intended to preclude the City from pursuing a petition for review in the court of appeal.

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Job Code FLSA  Status Classifications Grade  Codes Min  Hourly Rate
Max Hourly
Rate
Approx Max
Monthly Salary
Approx. Max
Annual Salary
2076 Exempt Utilities Administrative Assistant TBD $34.55 $46.06 $7,984 $95,805 1002 Exempt Assistant Director, Utilites Customer Support Services 230 $82.58 $110.10 $19,084 $229,008 TBD Exempt Assistant Director, Electric and Fiber Utilities Utilities 190 $94.08 $125.44 $21,743 $260,915 1003 Exempt Assistant Director, WGW Utilities 190 $94.08 $125.44 $21,743 $260,915 6 Exempt Assistant Director Utilities - Operations 210 $87.25 $116.33 $20,164 $241,966 65 Exempt Assistant Director, Utilities Resource Management 200 $91.85 $122.46 $21,226 $254,717 84 Exempt Manager, Utilities Public Communications 380 $59.33 $79.10 $13,711 $164,528 129 Exempt Engineering Manager, Electric and Fiber Utilities 231 $82.59 $110.11 $19,086 $229,029 120 Exempt Engineering Manager, Water, Gas & Wastewater (WGW) Utilities 231 $82.59 $110.11 $19,086 $229,029 2025 Exempt Manager, Utilities Strategic Business Services 240 $77.73 $103.63 $17,963 $215,550 179 Exempt Manager, Utilities Customer Service 360 $63.03 $84.04 $14,567 $174,803 185 Exempt Operations Manager, Electric and Fiber Utilities 270 $76.59 $102.12 $17,701 $212,410 1114 Exempt Manager, Utilities Credit & Collection 360 $63.03 $84.04 $14,567 $174,803 156 Exempt Operations Manager, WGW Utilities 270 $76.59 $102.12 $17,701 $212,410 150 Exempt Manager, Utilities Program Services 350 $63.11 $84.14 $14,584 $175,011 48 Exempt Manager, Fiber Optic Utility 350 $63.11 $84.14 $14,584 $175,011 2020 Exempt Utilities Principal Business Analyst TBD $65.82 $87.76 $15,212 $182,541 13 Exempt Utilities Senior Business Analyst TBD $57.24 $76.32 $13,229 $158,746 188 Exempt Principal Engineer, Electric and Fiber Utilities 291 $71.82 $95.76 $16,598 $199,181 2187 Exempt Principal Engineer, WGW Utilities 291 $71.82 $95.76 $16,598 $199,181 2014 Exempt Utilities Senior Management Analyst TBD $55.74 $74.32 $12,882 $154,586 64 Exempt Senior Planner, Utilities Resources 271 $70.11 $93.48 $16,203 $194,438 27 Exempt Supervising Project Engineer, Electric and Fiber Utilities 341 $64.64 $86.18 $14,938 $179,254 28 Exempt Supervising Project Engineer 341 $64.64 $86.18 $14,938 $179,254 1011 Exempt Manager, Utilities Compliance 291 $71.82 $95.76 $16,598 $199,181 114 Exempt Operations Supervisor, WGW Utilities 680 $66.60 $88.80 $15,392 $184,704 TBD Exempt Operations Supervisor, Electric and Fiber Utilities 680 $66.60 $88.80 $15,392 $184,704 2017 Exempt Utilities Safety Officer TBD $55.74 $74.32 $12,882 $154,586 City of Palo Alto
Utilities Management and Professional Association of Palo Alto (UMPAPA) Salary Schedule

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Resolution of Reclassification Request – Troy Winters, Facilities Carpenter

Date: May 12, 2021

The City of Palo Alto and SEIU (the Parties) agree to the following in resolution of the Reclassification Request made by Troy Winters, Facilities Carpenter, subject to City Council approval:

I. Pursuant to the Parties Memorandum of Agreement (MOA) Article VII Section 5 Reclassification Requests, Troy Winters submitted a Reclassification request in the request window of September 10, 2019 – October 10, 2019.

II. The Parties agree to the attached job description for Facilities Carpenter.

III. The Parties agree to increase the Facilities Carpenter hourly rate from top step $45.71 per hour to $47.51 per hour as soon as administratively feasible. This increase will be effective retroactive to October 10, 2019 pursuant to the Parties MOA Article VII Section 5 Reclassification Requests.

__________________________________ ________________________________ City of Palo Alto SEIU

________________________________
SEIU

DocuSign Envelope ID: 7B5014AE-4ED2-45FA-91A9-77ABE448A19B

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FACILITIES CARPENTER

DESCRIPTION:

Reports To: Manager, Maintenance Operations
Supervises: Non-supervisory position
Purpose of Classification:

Under general supervision , the Facilities Carpenter , performs a variety of skilled and technically complex carpentry, cabinetry, and related trades work in connection with construction, maintenance and repair of City facilities and the systems within. P erforms related duties as required to maintain City facilities in a safe and efficien t condition.

ESSENTIAL DUTIES:

Essential and other important responsibilities and duties may include, but are not limited to, th e following:

• Alters, repairs, installs, and constructs a variety of building structures such as walls, partitions, commercial doorways, window casings, stairways, and roofs. • Constructs, installs, repairs , and maintains finish carpentry system s including laminate construction, interior and exterior trim, molding, and wainscoting. • Installs and repairs carpet, VCT, and ceramic tiles.
• Uses a computerized maintenance management system to manage work orders, which includes scheduling, recording material costs, labor hours worked, and description of wor k completed.
• Inspects work sites to take dimensions, layout work, and estimates of materials required. • Installs metal and wood framing, sheetrock, taping, mudding, and wall finishing. • Installs and maintains decking, siding, fences, gates, pergolas, and other wooden outdoor structures.
• Builds concrete forms and pours concrete.
• Installs and repairs mechanical and electronic locks, door closers, and related building hardware.
• Constructs, assembles, or installs interior fixtures such as workstations, office furniture, cabinets, countertops, shelving, and bookcases.
• Operates and maintains hand tools, power tools, and equipment for a variety of trades. • Purchases supplies, materials and equipment for work projects; maintains records of purchase orders.
• Correspond verbally and in writing with customers and vendors for job scheduling, and material purchases.
• Coordinates and reviews the work of outside contractors, as necessary. May pay invoices for contractors through City Purchasing Card.
• Performs emergency repairs, as necessary; uses established safety procedures in doing such work.

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• Works in association with any of the other crafts (electrician, HVAC, or painter) when conditions, schedule, or workload warrants or as directed by management.

Related Functions:

• Attends safety meetings as directed by management.
• Attends various training classes as may be assigned by management. • Perform related duties and responsibilities as required.

MINIMUM QUALIFICATIONS:

Sufficient education, training and/or work experience to demonstrate possession of the following knowledge, skills and abilities, which would typically be acquired through:

• High school graduate or GED.
• Four years of journey-level experience working as a carpenter in a commercial, industrial, or large facility environment.

Special Requirements:
• Possession of a valid California Driver's License.

KNOWLEDGE, SKILLS, AND ABILITIES:
• Knowledge of principles, installation methods, materials, tools and equipment used in rough and finish carpentry, cabinet making, and wood finishing. • Knowledge of principles, installation methods, materials, tools and equipment used in related construction trades including c eiling systems, ceramic tile, doors and door hardware, floor coverings, locksmithing, office furniture assembly, windows, sky lights, and roof repair. • Knowledge and skill in operation and maintenance of a wide variety of hand, power, and shop tools, and other equipment common to the field of carpentry and related building trades. • Knowledge of pertinent UBC and CA ADA regulations and requirements. • Knowledge of safe work practices and safety regulations pertaining to the work, including the use of personal protective equipment.
• Knowledge of basic mathematical computation.
• Basic knowledge and understanding of other trade duties in HVAC, plumbing, electrical, swimming pool ope ration, fire alarm systems, and elevators in order to provide standby emergency services.
• Ability to exercise independent judgment and responsibili ty in assessing, organizing, prioritizing, scheduling, planning, purchasing of materials and equipment for all assigned projects and work orders.
• Ability to read, interpret, and work from engineered drawings, schematics, wiring diagrams, blueprints, sketches, O & M manuals, and verbal instructions to accomplish required work. • Ability to operate a computers and computer programs to enter and secure information. • Ability to work effectively at remote locations without direct supervision, using initiative and sound independent judgment within established guidelines. • Ability to maintain physical condition appropriate to the performance of assigned duties and responsibilities which may include walking or standing for extended periods of time and operating assigned equipment and vehicles.

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• Ability to communicate with others and to assimilate and understand information, in a manner consistent with the essential job functions.
• Ability to operate City vehicles observing legal and defensive driving practices. • Ability to make sound decisions in a manner consistent with the essential job functions. • Ability to operate scissor lifts, forklifts, and boom lifts.

WORKING CONDITIONS / PHYSICAL REQUIREMENTS:

Travel from site to site; exposure to dust, fumes, fibers, noise, and inclement weather; some climbing, stooping, lifting and working at heights; work around operating equipment.

May be assigned overtime and/or standby and response to off-hours emergency situations.

JD374

The City of Palo Alto is an Equal Opportunity Employer. In compliance with the Americans with Disabilities Act, the City will provide reasonable accommodation to qualified individuals with disabilities and encourages both prospective and current employees to discuss potential accommodations with the employer.

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Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 1 24.62$ 1 25.48$ 1 26.24$
2 25.91$ 2 26.82$ 2 27.62$
3 27.27$ 3 28.23$ 3 29.07$
4 28.70$ 4 29.71$ 4 30.60$
5 30.21$ 5,236$ 62,837$ 5 31.27$ 5,420$ 65,042$ 5 32.21$ 5,583$ 66,997$ 1 28.76$ 1 29.78$ 1 30.67$
2 30.27$ 2 31.34$ 2 32.28$
3 31.86$ 3 32.98$ 3 33.97$
4 33.53$ 4 34.71$ 4 35.75$
5 35.29$ 6,117$ 73,403$ 5 36.53$ 6,332$ 75,982$ 5 37.63$ 6,523$ 78,270$ 1 30.79$ 1 31.88$ 1 32.84$
2 32.41$ 2 33.55$ 2 34.56$
3 34.11$ 3 35.31$ 3 36.37$
4 35.90$ 4 37.16$ 4 38.28$
5 37.78$ 6,549$ 78,582$ 5 39.11$ 6,779$ 81,349$ 5 40.29$ 6,984$ 83,803$ 1 26.53$ 1 27.44$ 1 28.29$
2 27.92$ 2 28.88$ 2 29.77$
3 29.38$ 3 30.40$ 3 31.33$
4 30.92$ 4 32.00$ 4 32.97$
5 32.54$ 5,640$ 67,683$ 5 33.68$ 5,838$ 70,054$ 5 34.70$ 6,015$ 72,176$ 1 28.82$ 1 29.83$ 1 30.71$
2 30.33$ 2 31.39$ 2 32.32$
3 31.92$ 3 33.04$ 3 34.02$
4 33.59$ 4 34.77$ 4 35.81$
5 35.35$ 6,127$ 73,528$ 5 36.59$ 6,342$ 76,107$ 5 37.69$ 6,533$ 78,395$ 1 30.87$ 1 31.95$ 1 32.92$
2 32.49$ 2 33.63$ 2 34.65$
3 34.20$ 3 35.40$ 3 36.47$
4 36.00$ 4 37.26$ 4 38.38$
5 37.89$ 6,568$ 78,811$ 5 39.22$ 6,798$ 81,578$ 5 40.40$ 7,003$ 84,032$ 1 27.27$ 1 28.24$ 1 29.08$
2 28.70$ 2 29.72$ 2 30.61$
3 30.21$ 3 31.28$ 3 32.22$
4 31.80$ 4 32.92$ 4 33.91$
5 33.47$ 5,801$ 69,618$ 5 34.65$ 6,006$ 72,072$ 5 35.69$ 6,186$ 74,235$ 1 29.18$ 1 30.21$ 1 31.13$
2 30.71$ 2 31.79$ 2 32.76$
3 32.32$ 3 33.46$ 3 34.48$
4 34.02$ 4 35.22$ 4 36.29$
5 35.81$ 6,207$ 74,485$ 5 37.07$ 6,425$ 77,106$ 5 38.19$ 6,620$ 79,435$ 1 26.90$ 1 27.84$ 1 28.69$
2 28.31$ 2 29.30$ 2 30.19$
3 29.79$ 3 30.84$ 3 31.77$
4 31.35$ 4 32.46$ 4 33.44$
5 33.00$ 5,720$ 68,640$ 5 34.16$ 5,921$ 71,053$ 5 35.19$ 6,100$ 73,195$ 1 29.66$ 1 30.70$ 1 31.63$
2 31.22$ 2 32.31$ 2 33.29$
3 32.86$ 3 34.01$ 3 35.04$
4 34.58$ 4 35.80$ 4 36.88$
5 36.40$ 6,309$ 75,712$ 5 37.68$ 6,531$ 78,374$ 5 38.82$ 6,729$ 80,746$ Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
263 Non-Exempt Animal Services Spec
275 Non-Exempt Animal Services Spec II
276 Non-Exempt Animal Control Off
312 Non-Exempt Animal Control Off - L
295 Non-Exempt
Service Employees International Union (SEIU)
Salary Schedule
207 Non-Exempt Acct Spec-Lead
294 Non-Exempt Administrative Associate I
206 Non-Exempt Acct Assistant
204 Non-Exempt Acct Spec
Administrative Associate II
296 Non-Exempt Administrative Associate III

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Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 34.84$ 1 36.07$ 1 37.16$
2 36.67$ 2 37.96$ 2 39.11$
3 38.60$ 3 39.95$ 3 41.16$
4 40.63$ 4 42.05$ 4 43.32$
5 42.76$ 7,412$ 88,941$ 5 44.26$ 7,672$ 92,061$ 5 45.59$ 7,902$ 94,827$ 1 45.83$ 1 47.44$ 1 48.87$
2 48.24$ 2 49.93$ 2 51.44$
3 50.77$ 3 52.55$ 3 54.14$
4 53.44$ 4 55.31$ 4 56.98$
5 56.25$ 9,750$ 117,000$ 5 58.22$ 10,091$ 121,098$ 5 59.97$ 10,395$ 124,738$ 1 40.07$ 1 41.47$ 1 42.71$
2 42.17$ 2 43.65$ 2 44.95$
3 44.38$ 3 45.94$ 3 47.31$
4 46.71$ 4 48.35$ 4 49.80$
5 49.16$ 8,521$ 102,253$ 5 50.89$ 8,821$ 105,851$ 5 52.42$ 9,086$ 109,034$ 1 48.80$ 1 50.52$ 1 52.02$
2 51.36$ 2 53.17$ 2 54.75$
3 54.06$ 3 55.96$ 3 57.63$
4 56.90$ 4 58.90$ 4 60.66$
5 59.89$ 10,381$ 124,571$ 5 61.99$ 10,745$ 128,939$ 5 63.85$ 11,067$ 132,808$ 1 44.46$ 1 46.01$ 1 47.40$
2 46.79$ 2 48.43$ 2 49.89$
3 49.25$ 3 50.97$ 3 52.51$
4 51.84$ 4 53.65$ 4 55.27$
5 54.56$ 9,457$ 113,485$ 5 56.47$ 9,788$ 117,458$ 5 58.17$ 10,083$ 120,994$ 1 41.52$ 1 42.97$ 1 44.27$
2 43.70$ 2 45.23$ 2 46.59$
3 45.99$ 3 47.61$ 3 49.04$
4 48.41$ 4 50.11$ 4 51.62$
5 50.95$ 8,831$ 105,976$ 5 52.74$ 9,142$ 109,699$ 5 54.33$ 9,417$ 113,006$ 1 44.07$ 1 45.62$ 1 46.98$
2 46.38$ 2 48.02$ 2 49.45$
3 48.82$ 3 50.54$ 3 52.05$
4 51.38$ 4 53.19$ 4 54.78$
5 54.08$ 9,374$ 112,486$ 5 55.98$ 9,703$ 116,438$ 5 57.66$ 9,994$ 119,933$ 1 40.13$ 1 41.55$ 1 42.79$
2 42.24$ 2 43.73$ 2 45.04$
3 44.46$ 3 46.03$ 3 47.41$
4 46.80$ 4 48.45$ 4 49.90$
5 49.26$ 8,538$ 102,461$ 5 50.99$ 8,838$ 106,059$ 5 52.52$ 9,103$ 109,242$ 1 40.44$ 1 41.86$ 1 43.13$
2 42.56$ 2 44.06$ 2 45.39$
3 44.80$ 3 46.37$ 3 47.77$
4 47.15$ 4 48.81$ 4 50.28$
5 49.63$ 8,603$ 103,230$ 5 51.37$ 8,904$ 106,850$ 5 52.92$ 9,173$ 110,074$ 1 43.18$ 1 44.69$ 1 46.03$
2 45.45$ 2 47.04$ 2 48.45$
3 47.84$ 3 49.51$ 3 51.00$
4 50.35$ 4 52.11$ 4 53.68$
5 52.99$ 9,185$ 110,219$ 5 54.85$ 9,507$ 114,088$ 5 56.50$ 9,793$ 117,520$ Non-Exempt Assoc Engineer
299 Non-Exempt Bldg Inspector
300 Non-Exempt Bldg Inspector Spec
256 Non-Exempt Asst Power Engr
268 Non-Exempt Asst Res Planner
269 Non-Exempt Assoc Res Planner
330 Non-Exempt Asst Engineer
353 Non-Exempt Assoc Planner
247 Non-Exempt Assoc Power Engr
244 Non-Exempt Assoc Buyer
333

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Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 23.73$ 1 24.55$ 1 25.29$
2 24.97$ 2 25.84$ 2 26.62$
3 26.28$ 3 27.20$ 3 28.02$
4 27.66$ 4 28.63$ 4 29.49$
5 29.11$ 5,046$ 60,549$ 5 30.13$ 5,223$ 62,670$ 5 31.04$ 5,380$ 64,563$ 1 25.40$ 1 26.29$ 1 27.08$
2 26.73$ 2 27.67$ 2 28.50$
3 28.13$ 3 29.12$ 3 30.00$
4 29.61$ 4 30.65$ 4 31.57$
5 31.16$ 5,401$ 64,813$ 5 32.26$ 5,592$ 67,101$ 5 33.23$ 5,760$ 69,118$ 1 32.49$ 1 33.63$ 1 34.65$
2 34.20$ 2 35.39$ 2 36.47$
3 35.99$ 3 37.25$ 3 38.38$
4 37.88$ 4 39.21$ 4 40.39$
5 39.87$ 6,911$ 82,930$ 5 41.27$ 7,153$ 85,842$ 5 42.51$ 7,368$ 88,421$ 1 57.06$ 1 59.07$ 1 60.84$
2 60.06$ 2 62.17$ 2 64.04$
3 63.22$ 3 65.44$ 3 67.41$
4 66.54$ 4 68.88$ 4 70.95$
5 70.04$ 12,140$ 145,683$ 5 72.50$ 12,567$ 150,800$ 5 74.68$ 12,945$ 155,334$ 1 57.06$ 1 59.07$ 1 60.84$
2 60.06$ 2 62.17$ 2 64.04$
3 63.22$ 3 65.44$ 3 67.41$
4 66.54$ 4 68.88$ 4 70.95$
5 70.04$ 12,140$ 145,683$ 5 72.50$ 12,567$ 150,800$ 5 74.68$ 12,945$ 155,334$ 1 38.37$ 1 39.71$ 1 40.90$
2 40.38$ 2 41.80$ 2 43.05$
3 42.50$ 3 43.99$ 3 45.31$
4 44.73$ 4 46.30$ 4 47.69$
5 47.08$ 8,161$ 97,926$ 5 48.73$ 8,447$ 101,358$ 5 50.20$ 8,701$ 104,416$ 1 39.17$ 1 40.55$ 1 41.77$
2 41.23$ 2 42.68$ 2 43.96$
3 43.39$ 3 44.92$ 3 46.27$
4 45.67$ 4 47.28$ 4 48.70$
5 48.07$ 8,332$ 99,986$ 5 49.76$ 8,625$ 103,501$ 5 51.26$ 8,885$ 106,621$ 1 48.07$ 1 49.76$ 1 51.27$
2 50.59$ 2 52.37$ 2 53.96$
3 53.25$ 3 55.12$ 3 56.79$
4 56.05$ 4 58.02$ 4 59.77$
5 59.00$ 10,227$ 122,720$ 5 61.07$ 10,585$ 127,026$ 5 62.91$ 10,904$ 130,853$ 1 42.81$ 1 44.31$ 1 45.64$
2 45.06$ 2 46.64$ 2 48.04$
3 47.43$ 3 49.09$ 3 50.56$
4 49.92$ 4 51.67$ 4 53.22$
5 52.54$ 9,107$ 109,283$ 5 54.38$ 9,426$ 113,110$ 5 56.02$ 9,710$ 116,522$ 1 34.93$ 1 36.16$ 1 37.24$
2 36.76$ 2 38.06$ 2 39.20$
3 38.69$ 3 40.06$ 3 41.26$
4 40.72$ 4 42.16$ 4 43.43$
5 42.86$ 7,429$ 89,149$ 5 44.37$ 7,691$ 92,290$ 5 45.71$ 7,923$ 95,077$ 3400 Non-Exempt Business Analyst - S
212 Non-Exempt Buyer
355 Non-Exempt Bldg/Plg Technician
340 Non-Exempt Business Analyst
370 Non-Exempt Bldg Serviceperson
371 Non-Exempt Bldg Serviceperson-L
208 Non-Exempt CDBG Coordinator
408 Non-Exempt Cement Finisher
464 Non-Exempt Cathodic Protection Tech Assistant
536 Non-Exempt Cathodic Tech

4.g
Packet Pg. 69
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 37.37$ 1 38.67$ 1 39.84$
2 39.33$ 2 40.70$ 2 41.93$
3 41.39$ 3 42.84$ 3 44.13$
4 43.56$ 4 45.09$ 4 46.45$
5 45.85$ 7,947$ 95,368$ 5 47.46$ 8,226$ 98,717$ 5 48.89$ 8,474$ 101,691$ 1 38.90$ 1 40.26$ 1 41.48$
2 40.94$ 2 42.37$ 2 43.66$
3 43.09$ 3 44.60$ 3 45.95$
4 45.35$ 4 46.94$ 4 48.36$
5 47.73$ 8,273$ 99,278$ 5 49.41$ 8,564$ 102,773$ 5 50.90$ 8,823$ 105,872$ 1 43.27$ 1 44.78$ 1 46.13$
2 45.54$ 2 47.13$ 2 48.55$
3 47.93$ 3 49.61$ 3 51.10$
4 50.45$ 4 52.22$ 4 53.78$
5 53.10$ 9,204$ 110,448$ 5 54.96$ 9,526$ 114,317$ 5 56.61$ 9,812$ 117,749$ 1 38.85$ 1 40.22$ 1 41.42$
2 40.89$ 2 42.33$ 2 43.60$
3 43.04$ 3 44.55$ 3 45.89$
4 45.30$ 4 46.89$ 4 48.30$
5 47.68$ 8,265$ 99,174$ 5 49.35$ 8,554$ 102,648$ 5 50.84$ 8,812$ 105,747$ 1 41.55$ 1 43.02$ 1 44.31$
2 43.73$ 2 45.28$ 2 46.64$
3 46.03$ 3 47.66$ 3 49.09$
4 48.45$ 4 50.16$ 4 51.67$
5 51.00$ 8,840$ 106,080$ 5 52.79$ 9,150$ 109,803$ 5 54.38$ 9,426$ 113,110$ 1 39.80$ 1 41.20$ 1 42.43$
2 41.89$ 2 43.36$ 2 44.66$
3 44.09$ 3 45.64$ 3 47.01$
4 46.41$ 4 48.04$ 4 49.48$
5 48.85$ 8,467$ 101,608$ 5 50.56$ 8,764$ 105,165$ 5 52.08$ 9,027$ 108,326$ 1 29.67$ 1 30.72$ 1 31.65$
2 31.23$ 2 32.33$ 2 33.31$
3 32.87$ 3 34.03$ 3 35.06$
4 34.60$ 4 35.82$ 4 36.90$
5 36.42$ 6,313$ 75,754$ 5 37.70$ 6,535$ 78,416$ 5 38.84$ 6,732$ 80,787$ 1 31.74$ 1 32.86$ 1 33.84$
2 33.41$ 2 34.58$ 2 35.62$
3 35.16$ 3 36.40$ 3 37.49$
4 37.01$ 4 38.31$ 4 39.46$
5 38.95$ 6,751$ 81,016$ 5 40.32$ 6,989$ 83,866$ 5 41.53$ 7,199$ 86,382$ 1 40.95$ 1 42.37$ 1 43.67$
2 43.10$ 2 44.60$ 2 45.96$
3 45.36$ 3 46.94$ 3 48.37$
4 47.74$ 4 49.41$ 4 50.91$
5 50.25$ 8,710$ 104,520$ 5 52.01$ 9,015$ 108,181$ 5 53.58$ 9,287$ 111,446$ 1 40.95$ 1 42.37$ 1 43.67$
2 43.10$ 2 44.60$ 2 45.96$
3 45.36$ 3 46.94$ 3 48.37$
4 47.74$ 4 49.41$ 4 50.91$
5 50.25$ 8,710$ 104,520$ 5 52.01$ 9,015$ 108,181$ 5 53.58$ 9,287$ 111,446$ Non-Exempt Cement Finisher Lead
502 Non-Exempt Chemist
341 Non-Exempt Coor Trans Sys Mgmt
3410 Non-Exempt Coor Trans Sys Mgmt - S
702 Non-Exempt Community Serv Offcr
320 Non-Exempt Community Service Officer - Lead
560 Non-Exempt Code Enforcement Off - L
306 Non-Exempt Comm Tech
239 Non-Exempt Chf Inspec WGW
301 Non-Exempt Code Enforcement Off
409

4.g
Packet Pg. 70
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 37.16$ 1 38.45$ 1 39.61$
2 39.11$ 2 40.47$ 2 41.69$
3 41.16$ 3 42.60$ 3 43.88$
4 43.32$ 4 44.84$ 4 46.18$
5 45.59$ 7,902$ 94,827$ 5 47.19$ 8,180$ 98,155$ 5 48.61$ 8,426$ 101,109$ 1 38.91$ 1 40.27$ 1 41.49$
2 40.95$ 2 42.38$ 2 43.67$
3 43.10$ 3 44.61$ 3 45.96$
4 45.36$ 4 46.95$ 4 48.37$
5 47.74$ 8,275$ 99,299$ 5 49.42$ 8,566$ 102,794$ 5 50.91$ 8,824$ 105,893$ 1 33.42$ 1 34.59$ 1 35.64$
2 35.17$ 2 36.41$ 2 37.51$
3 37.02$ 3 38.32$ 3 39.48$
4 38.96$ 4 40.33$ 4 41.55$
5 41.01$ 7,108$ 85,301$ 5 42.45$ 7,358$ 88,296$ 5 43.73$ 7,580$ 90,958$ 1 42.02$ 1 43.50$ 1 44.80$
2 44.23$ 2 45.78$ 2 47.15$
3 46.55$ 3 48.18$ 3 49.63$
4 48.99$ 4 50.71$ 4 52.24$
5 51.56$ 8,937$ 107,245$ 5 53.37$ 9,251$ 111,010$ 5 54.98$ 9,530$ 114,358$ 1 42.02$ 1 43.50$ 1 44.80$
2 44.23$ 2 45.78$ 2 47.15$
3 46.55$ 3 48.18$ 3 49.63$
4 48.99$ 4 50.71$ 4 52.24$
5 51.56$ 8,937$ 107,245$ 5 53.37$ 9,251$ 111,010$ 5 54.98$ 9,530$ 114,358$ 1 37.35$ 1 38.65$ 1 39.82$
2 39.31$ 2 40.68$ 2 41.91$
3 41.37$ 3 42.82$ 3 44.11$
4 43.54$ 4 45.07$ 4 46.43$
5 45.83$ 7,944$ 95,326$ 5 47.44$ 8,223$ 98,675$ 5 48.87$ 8,471$ 101,650$ 1 38.62$ 1 39.97$ 1 41.18$
2 40.65$ 2 42.07$ 2 43.34$
3 42.78$ 3 44.28$ 3 45.62$
4 45.03$ 4 46.61$ 4 48.02$
5 47.40$ 8,216$ 98,592$ 5 49.06$ 8,504$ 102,045$ 5 50.54$ 8,760$ 105,123$ 1 38.62$ 1 39.97$ 1 41.18$
2 40.65$ 2 42.07$ 2 43.34$
3 42.78$ 3 44.28$ 3 45.62$
4 45.03$ 4 46.61$ 4 48.02$
5 47.40$ 8,216$ 98,592$ 5 49.06$ 8,504$ 102,045$ 5 50.54$ 8,760$ 105,123$ 1 33.58$ 1 34.75$ 1 35.79$
2 35.34$ 2 36.57$ 2 37.67$
3 37.19$ 3 38.49$ 3 39.65$
4 39.14$ 4 40.51$ 4 41.73$
5 41.19$ 7,140$ 85,675$ 5 42.64$ 7,391$ 88,691$ 5 43.92$ 7,613$ 91,354$ 1 28.54$ 1 29.55$ 1 30.44$
2 30.04$ 2 31.10$ 2 32.04$
3 31.62$ 3 32.73$ 3 33.72$
4 33.28$ 4 34.45$ 4 35.49$
5 35.03$ 6,072$ 72,862$ 5 36.26$ 6,285$ 75,421$ 5 37.35$ 6,474$ 77,688$ Non-Exempt Coord Utility Proj - S
342 Non-Exempt Coord Pub Wks Proj
Coord Rec Prog
344 Non-Exempt Coord Utility Proj
255 Non-Exempt Coord Library Prog
214 Non-Exempt Crime Analyst
3440
415 Non-Exempt Cust Srv Specialist-L
218 Non-Exempt Cust Svc Represent
205 Non-Exempt Court Liaison Officer
242 Non-Exempt Coord Zero Waste
317 Non-Exempt

4.g
Packet Pg. 71
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 31.39$ 1 32.49$ 1 33.46$
2 33.04$ 2 34.20$ 2 35.22$
3 34.77$ 3 35.99$ 3 37.07$
4 36.60$ 4 37.88$ 4 39.02$
5 38.52$ 6,677$ 80,122$ 5 39.87$ 6,911$ 82,930$ 5 41.07$ 7,119$ 85,426$ 1 34.21$ 1 35.40$ 1 36.48$
2 36.01$ 2 37.26$ 2 38.39$
3 37.90$ 3 39.22$ 3 40.41$
4 39.89$ 4 41.28$ 4 42.53$
5 41.98$ 7,277$ 87,318$ 5 43.45$ 7,531$ 90,376$ 5 44.76$ 7,758$ 93,101$ 1 31.07$ 1 32.16$ 1 33.13$
2 32.70$ 2 33.85$ 2 34.87$
3 34.42$ 3 35.63$ 3 36.70$
4 36.23$ 4 37.50$ 4 38.63$
5 38.13$ 6,609$ 79,310$ 5 39.47$ 6,841$ 82,098$ 5 40.66$ 7,048$ 84,573$ 1 35.31$ 1 36.53$ 1 37.64$
2 37.16$ 2 38.45$ 2 39.62$
3 39.11$ 3 40.47$ 3 41.70$
4 41.16$ 4 42.60$ 4 43.89$
5 43.32$ 7,509$ 90,106$ 5 44.84$ 7,772$ 93,267$ 5 46.19$ 8,006$ 96,075$ 1 38.94$ 1 40.30$ 1 41.52$
2 40.98$ 2 42.42$ 2 43.70$
3 43.13$ 3 44.65$ 3 45.99$
4 45.40$ 4 46.99$ 4 48.41$
5 47.78$ 8,282$ 99,382$ 5 49.46$ 8,573$ 102,877$ 5 50.95$ 8,831$ 105,976$ 1 33.39$ 1 34.55$ 1 35.59$
2 35.14$ 2 36.36$ 2 37.46$
3 36.98$ 3 38.27$ 3 39.43$
4 38.92$ 4 40.28$ 4 41.50$
5 40.96$ 7,100$ 85,197$ 5 42.40$ 7,349$ 88,192$ 5 43.68$ 7,571$ 90,854$ 1 42.04$ 1 43.51$ 1 44.83$
2 44.25$ 2 45.80$ 2 47.18$
3 46.57$ 3 48.21$ 3 49.66$
4 49.02$ 4 50.74$ 4 52.27$
5 51.60$ 8,944$ 107,328$ 5 53.41$ 9,258$ 111,093$ 5 55.02$ 9,537$ 114,442$ 1 58.47$ 1 60.51$ 1 62.32$
2 61.54$ 2 63.69$ 2 65.60$
3 64.77$ 3 67.04$ 3 69.05$
4 68.17$ 4 70.56$ 4 72.68$
5 71.75$ 12,437$ 149,240$ 5 74.27$ 12,873$ 154,482$ 5 76.50$ 13,260$ 159,120$ 1 58.47$ 1 60.51$ 1 62.32$
2 61.54$ 2 63.69$ 2 65.60$
3 64.77$ 3 67.04$ 3 69.05$
4 68.17$ 4 70.56$ 4 72.68$
5 71.75$ 12,437$ 149,240$ 5 74.27$ 12,873$ 154,482$ 5 76.50$ 13,260$ 159,120$ 1 44.96$ 1 46.55$ 1 47.94$
2 47.32$ 2 48.99$ 2 50.46$
3 49.81$ 3 51.56$ 3 53.11$
4 52.43$ 4 54.27$ 4 55.90$
5 55.18$ 9,565$ 114,774$ 5 57.12$ 9,901$ 118,810$ 5 58.84$ 10,199$ 122,387$ 516 Non-Exempt Development Project Coordinator III
514 Non-Exempt Development Project Coordinator I
515 Non-Exempt Development Project Coordinator II
217 Non-Exempt Cust Svc Spec
260
267 Non-Exempt Elec Undgd Inspec
Non-Exempt Desktop Technician
345
3450
292
533 Non-Exempt Elec Asst I
Non-Exempt
Non-Exempt
Non-Exempt
Electric Project Engineer
Electric Project Engineer - S
Electric Underground Inspector - Lead

4.g
Packet Pg. 72
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 42.97$ 1 44.48$ 1 45.81$
2 45.23$ 2 46.82$ 2 48.22$
3 47.61$ 3 49.28$ 3 50.75$
4 50.11$ 4 51.87$ 4 53.42$
5 52.74$ 9,142$ 109,699$ 5 54.59$ 9,462$ 113,547$ 5 56.23$ 9,747$ 116,958$ 1 41.11$ 1 42.55$ 1 43.84$
2 43.27$ 2 44.78$ 2 46.14$
3 45.54$ 3 47.13$ 3 48.56$
4 47.93$ 4 49.61$ 4 51.11$
5 50.45$ 8,745$ 104,936$ 5 52.22$ 9,051$ 108,618$ 5 53.79$ 9,324$ 111,883$ 1 38.92$ 1 40.28$ 1 41.50$
2 40.96$ 2 42.39$ 2 43.68$
3 43.11$ 3 44.62$ 3 45.97$
4 45.37$ 4 46.96$ 4 48.38$
5 47.75$ 8,277$ 99,320$ 5 49.43$ 8,568$ 102,814$ 5 50.92$ 8,826$ 105,914$ 1 44.02$ 1 45.57$ 1 46.93$
2 46.33$ 2 47.96$ 2 49.40$
3 48.76$ 3 50.48$ 3 51.99$
4 51.32$ 4 53.13$ 4 54.72$
5 54.02$ 9,363$ 112,362$ 5 55.92$ 9,693$ 116,314$ 5 57.60$ 9,984$ 119,808$ 1 30.87$ 1 31.95$ 1 32.92$
2 32.49$ 2 33.63$ 2 34.65$
3 34.20$ 3 35.40$ 3 36.47$
4 36.00$ 4 37.26$ 4 38.38$
5 37.89$ 6,568$ 78,811$ 5 39.22$ 6,798$ 81,578$ 5 40.40$ 7,003$ 84,032$ 1 29.98$ 1 31.03$ 1 31.95$
2 31.55$ 2 32.66$ 2 33.63$
3 33.21$ 3 34.37$ 3 35.40$
4 34.95$ 4 36.17$ 4 37.26$
5 36.78$ 6,375$ 76,502$ 5 38.07$ 6,599$ 79,186$ 5 39.22$ 6,798$ 81,578$ 1 51.63$ 1 53.43$ 1 55.05$
2 54.34$ 2 56.24$ 2 57.94$
3 57.19$ 3 59.20$ 3 60.98$
4 60.20$ 4 62.31$ 4 64.18$
5 63.36$ 10,982$ 131,789$ 5 65.58$ 11,367$ 136,406$ 5 67.55$ 11,709$ 140,504$ 1 32.43$ 1 33.58$ 1 34.58$
2 34.13$ 2 35.34$ 2 36.39$
3 35.92$ 3 37.19$ 3 38.30$
4 37.81$ 4 39.14$ 4 40.31$
5 39.79$ 6,897$ 82,763$ 5 41.19$ 7,140$ 85,675$ 5 42.43$ 7,355$ 88,254$ 1 36.21$ 1 37.48$ 1 38.61$
2 38.11$ 2 39.45$ 2 40.64$
3 40.11$ 3 41.52$ 3 42.77$
4 42.22$ 4 43.70$ 4 45.02$
5 44.44$ 7,703$ 92,435$ 5 46.00$ 7,973$ 95,680$ 5 47.38$ 8,213$ 98,550$ 1 42.58$ 1 44.08$ 1 45.41$
2 44.82$ 2 46.39$ 2 47.79$
3 47.17$ 3 48.83$ 3 50.30$
4 49.65$ 4 51.39$ 4 52.94$
5 52.26$ 9,058$ 108,701$ 5 54.09$ 9,376$ 112,507$ 5 55.72$ 9,658$ 115,898$ 527
530
529
535
399
311
332
323
319
257
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Electrical Equipment Tech
Electrician
Electrician-Appren
Electrician-Lead
Emergency Med Svs Data Specialist
Eng Tech I
Engineer
Engr Tech II
Engr Tech III
Environmental Spec

4.g
Packet Pg. 73
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 26.03$ 1 26.94$ 1 27.76$
2 27.40$ 2 28.35$ 2 29.22$
3 28.84$ 3 29.84$ 3 30.75$
4 30.35$ 4 31.41$ 4 32.36$
5 31.94$ 5,536$ 66,435$ 5 33.06$ 5,730$ 68,765$ 5 34.06$ 5,904$ 70,845$ 1 32.14$ 1 33.27$ 1 34.29$
2 33.83$ 2 35.02$ 2 36.09$
3 35.61$ 3 36.86$ 3 37.98$
4 37.48$ 4 38.80$ 4 39.97$
5 39.45$ 6,838$ 82,056$ 5 40.84$ 7,079$ 84,947$ 5 42.07$ 7,292$ 87,506$ 1 34.39$ 1 35.60$ 1 36.67$
2 36.20$ 2 37.47$ 2 38.60$
3 38.10$ 3 39.44$ 3 40.63$
4 40.10$ 4 41.51$ 4 42.76$
5 42.21$ 7,316$ 87,797$ 5 43.69$ 7,573$ 90,875$ 5 45.01$ 7,802$ 93,621$ 1 27.92$ 1 28.88$ 1 29.77$
2 29.38$ 2 30.40$ 2 31.33$
3 30.92$ 3 32.00$ 3 32.97$
4 32.54$ 4 33.68$ 4 34.70$
5 34.25$ 5,937$ 71,240$ 5 35.45$ 6,145$ 73,736$ 5 36.52$ 6,330$ 75,962$ 1 26.79$ 1 27.74$ 1 28.58$
2 28.20$ 2 29.20$ 2 30.08$
3 29.68$ 3 30.73$ 3 31.66$
4 31.24$ 4 32.34$ 4 33.32$
5 32.88$ 5,699$ 68,390$ 5 34.04$ 5,900$ 70,803$ 5 35.07$ 6,079$ 72,946$ 1 34.93$ 1 37.58$ 1 38.72$
2 36.76$ 2 39.55$ 2 40.75$
3 38.69$ 3 41.63$ 3 42.89$
4 40.72$ 4 43.82$ 4 45.14$
5 42.86$ 7,429$ 89,149$ 5 46.12$ 7,994$ 95,930$ 5 47.51$ 8,235$ 98,821$ 1 34.93$ 1 36.16$ 1 37.24$
2 36.76$ 2 38.06$ 2 39.20$
3 38.69$ 3 40.06$ 3 41.26$
4 40.72$ 4 42.16$ 4 43.43$
5 42.86$ 7,429$ 89,149$ 5 44.37$ 7,691$ 92,290$ 5 45.71$ 7,923$ 95,077$ 1 34.07$ 1 35.27$ 1 36.33$
2 35.86$ 2 37.12$ 2 38.24$
3 37.74$ 3 39.07$ 3 40.25$
4 39.72$ 4 41.12$ 4 42.36$
5 41.81$ 7,247$ 86,965$ 5 43.28$ 7,502$ 90,022$ 5 44.58$ 7,727$ 92,726$ 1 45.12$ 1 46.70$ 1 48.09$
2 47.49$ 2 49.15$ 2 50.62$
3 49.98$ 3 51.73$ 3 53.28$
4 52.61$ 4 54.45$ 4 56.08$
5 55.37$ 9,597$ 115,170$ 5 57.31$ 9,934$ 119,205$ 5 59.03$ 10,232$ 122,782$ 1 34.93$ 1 36.16$ 1 37.24$
2 36.76$ 2 38.06$ 2 39.20$
3 38.69$ 3 40.06$ 3 41.26$
4 40.72$ 4 42.16$ 4 43.43$
5 42.86$ 7,429$ 89,149$ 5 44.37$ 7,691$ 92,290$ 5 45.71$ 7,923$ 95,077$ 1 36.31$ 1 37.58$ 1 38.72$
374
375
373
377
211
396
397
250
203
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Facilities Asst
Facilities Carpenter
Facilities Elect
Facilities Maint-L
Facilities Painter
Equip Maint Serv Per
Equip Operator
Equip Operator - Lead
Equip Parts Tech
374 Non-Exempt Facilities Carpenter

4.g
Packet Pg. 74
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
2 38.22$ 2 39.55$ 2 40.75$
3 40.23$ 3 41.63$ 3 42.89$
4 42.34$ 4 43.82$ 4 45.14$
5 44.56$ 7,724$ 92,685$ 5 46.12$ 7,994$ 95,930$ 5 47.51$ 8,235$ 98,821$ 376 Non-Exempt Facilities Tech

4.g
Packet Pg. 75
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 32.57$ 1 33.71$ 1 34.72$
2 34.28$ 2 35.48$ 2 36.54$
3 36.08$ 3 37.34$ 3 38.46$
4 37.97$ 4 39.30$ 4 40.48$
5 39.96$ 6,926$ 83,117$ 5 41.36$ 7,169$ 86,029$ 5 42.61$ 7,386$ 88,629$ 1 33.25$ 1 34.40$ 1 35.44$
2 34.99$ 2 36.21$ 2 37.30$
3 36.83$ 3 38.11$ 3 39.26$
4 38.76$ 4 40.11$ 4 41.32$
5 40.79$ 7,070$ 84,843$ 5 42.22$ 7,318$ 87,818$ 5 43.49$ 7,538$ 90,459$ 1 37.05$ 1 38.37$ 1 39.52$
2 39.00$ 2 40.38$ 2 41.60$
3 41.05$ 3 42.50$ 3 43.78$
4 43.21$ 4 44.73$ 4 46.08$
5 45.48$ 7,883$ 94,598$ 5 47.08$ 8,161$ 97,926$ 5 48.50$ 8,407$ 100,880$ 1 38.93$ 1 40.28$ 1 41.51$
2 40.97$ 2 42.40$ 2 43.69$
3 43.12$ 3 44.63$ 3 45.98$
4 45.38$ 4 46.97$ 4 48.39$
5 47.76$ 8,278$ 99,341$ 5 49.44$ 8,570$ 102,835$ 5 50.93$ 8,828$ 105,934$ 1 38.93$ 1 40.28$ 1 41.51$
2 40.97$ 2 42.40$ 2 43.69$
3 43.12$ 3 44.63$ 3 45.98$
4 45.38$ 4 46.97$ 4 48.39$
5 47.76$ 8,278$ 99,341$ 5 49.44$ 8,570$ 102,835$ 5 50.93$ 8,828$ 105,934$ 1 40.87$ 1 42.31$ 1 43.57$
2 43.02$ 2 44.53$ 2 45.86$
3 45.28$ 3 46.87$ 3 48.27$
4 47.66$ 4 49.33$ 4 50.81$
5 50.16$ 8,694$ 104,333$ 5 51.92$ 8,999$ 107,994$ 5 53.48$ 9,270$ 111,238$ 1 47.90$ 1 49.59$ 1 51.09$
2 50.42$ 2 52.19$ 2 53.77$
3 53.07$ 3 54.93$ 3 56.59$
4 55.86$ 4 57.82$ 4 59.56$
5 58.80$ 10,192$ 122,304$ 5 60.86$ 10,549$ 126,589$ 5 62.69$ 10,866$ 130,395$ 1 38.47$ 1 39.83$ 1 41.03$
2 40.49$ 2 41.92$ 2 43.18$
3 42.62$ 3 44.12$ 3 45.45$
4 44.86$ 4 46.44$ 4 47.84$
5 47.22$ 8,185$ 98,218$ 5 48.88$ 8,473$ 101,670$ 5 50.35$ 8,727$ 104,728$ 1 41.16$ 1 42.59$ 1 43.87$
2 43.32$ 2 44.83$ 2 46.17$
3 45.59$ 3 47.18$ 3 48.60$
4 47.98$ 4 49.66$ 4 51.15$
5 50.50$ 8,753$ 105,040$ 5 52.27$ 9,060$ 108,722$ 5 53.84$ 9,332$ 111,987$ 1 39.92$ 1 41.33$ 1 42.56$
2 42.02$ 2 43.50$ 2 44.80$
3 44.23$ 3 45.78$ 3 47.15$
4 46.55$ 4 48.18$ 4 49.63$
5 48.99$ 8,492$ 101,899$ 5 50.71$ 8,790$ 105,477$ 5 52.24$ 9,055$ 108,659$ 462
383
419
418
417
416
398
390
391
571
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Field Service Pers WGW
Fleet Svcs Coord
Assistant Gas Measurement and Control
Technician
Gas Measurement and Control Technician
Assistant Gas and Water Measurement and
Control Technician
Gas and Water Measurement and Control
Technician
Geographic Inform Syst Specialist
Heavy Equip Oper
Heavy Equip Oper-L
Electric Heavy Equip Oper

4.g
Packet Pg. 76
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 38.73$ 1 40.09$ 1 41.29$
2 40.76$ 2 42.19$ 2 43.46$
3 42.90$ 3 44.41$ 3 45.74$
4 45.15$ 4 46.74$ 4 48.14$
5 47.52$ 8,237$ 98,842$ 5 49.19$ 8,526$ 102,315$ 5 50.67$ 8,783$ 105,394$ 1 40.35$ 1 41.77$ 1 43.02$
2 42.47$ 2 43.96$ 2 45.28$
3 44.70$ 3 46.27$ 3 47.66$
4 47.05$ 4 48.70$ 4 50.16$
5 49.52$ 8,583$ 103,002$ 5 51.26$ 8,885$ 106,621$ 5 52.80$ 9,152$ 109,824$ 1 35.78$ 1 37.04$ 1 38.15$
2 37.66$ 2 38.98$ 2 40.15$
3 39.64$ 3 41.03$ 3 42.26$
4 41.72$ 4 43.18$ 4 44.48$
5 43.91$ 7,611$ 91,333$ 5 45.45$ 7,878$ 94,536$ 5 46.82$ 8,115$ 97,386$ 1 40.20$ 1 41.61$ 1 42.86$
2 42.31$ 2 43.79$ 2 45.11$
3 44.53$ 3 46.09$ 3 47.48$
4 46.87$ 4 48.51$ 4 49.97$
5 49.33$ 8,551$ 102,606$ 5 51.06$ 8,850$ 106,205$ 5 52.60$ 9,117$ 109,408$ 1 32.30$ 1 33.44$ 1 34.45$
2 34.00$ 2 35.19$ 2 36.26$
3 35.78$ 3 37.04$ 3 38.16$
4 37.66$ 4 38.98$ 4 40.16$
5 39.64$ 6,871$ 82,451$ 5 41.03$ 7,112$ 85,342$ 5 42.27$ 7,327$ 87,922$ 1 39.07$ 1 40.44$ 1 41.65$
2 41.12$ 2 42.56$ 2 43.84$
3 43.28$ 3 44.79$ 3 46.14$
4 45.55$ 4 47.14$ 4 48.56$
5 47.94$ 8,310$ 99,715$ 5 49.62$ 8,601$ 103,210$ 5 51.11$ 8,859$ 106,309$ 1 38.77$ 1 40.13$ 1 41.34$
2 40.81$ 2 42.24$ 2 43.51$
3 42.95$ 3 44.46$ 3 45.79$
4 45.21$ 4 46.79$ 4 48.20$
5 47.58$ 8,247$ 98,966$ 5 49.25$ 8,537$ 102,440$ 5 50.73$ 8,793$ 105,518$ 1 29.89$ 1 30.95$ 1 31.88$
2 31.46$ 2 32.57$ 2 33.55$
3 33.11$ 3 34.28$ 3 35.31$
4 34.85$ 4 36.08$ 4 37.16$
5 36.68$ 6,358$ 76,294$ 5 37.97$ 6,581$ 78,978$ 5 39.11$ 6,779$ 81,349$ 1 34.80$ 1 36.02$ 1 37.10$
2 36.63$ 2 37.91$ 2 39.05$
3 38.55$ 3 39.90$ 3 41.10$
4 40.57$ 4 41.99$ 4 43.26$
5 42.70$ 7,401$ 88,816$ 5 44.20$ 7,661$ 91,936$ 5 45.53$ 7,892$ 94,702$ 1 39.48$ 1 40.86$ 1 42.09$
2 41.55$ 2 43.01$ 2 44.30$
3 43.73$ 3 45.27$ 3 46.63$
4 46.03$ 4 47.65$ 4 49.08$
5 48.45$ 8,398$ 100,776$ 5 50.15$ 8,693$ 104,312$ 5 51.66$ 8,954$ 107,453$ 508
258
365
227
308
293
503
413
572
389
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Ind Waste Inspec
Ind Waste Invtgtr
Industrial Waste Technician
Inspector, Field Svc
Instrum Elec
Educator
Laboratory Tech Wqc
Landfill Technician
WGW Heavy Equip Oper
HEO/Installer Repairer

4.g
Packet Pg. 77
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 30.00$ 1 31.05$ 1 31.98$
2 31.57$ 2 32.68$ 2 33.66$
3 33.23$ 3 34.39$ 3 35.43$
4 34.97$ 4 36.20$ 4 37.29$
5 36.81$ 6,380$ 76,565$ 5 38.10$ 6,604$ 79,248$ 5 39.25$ 6,803$ 81,640$ 1 26.96$ 1 27.91$ 1 28.74$
2 28.37$ 2 29.37$ 2 30.25$
3 29.86$ 3 30.91$ 3 31.84$
4 31.43$ 4 32.53$ 4 33.51$
5 33.08$ 5,734$ 68,806$ 5 34.24$ 5,935$ 71,219$ 5 35.27$ 6,113$ 73,362$ 1 25.50$ 1 26.41$ 1 27.20$
2 26.84$ 2 27.79$ 2 28.63$
3 28.25$ 3 29.25$ 3 30.13$
4 29.73$ 4 30.78$ 4 31.71$
5 31.29$ 5,424$ 65,083$ 5 32.39$ 5,614$ 67,371$ 5 33.37$ 5,784$ 69,410$ 1 57.84$ 1 59.86$ 1 61.67$
2 60.88$ 2 63.01$ 2 64.91$
3 64.08$ 3 66.32$ 3 68.32$
4 67.45$ 4 69.81$ 4 71.91$
5 70.99$ 12,305$ 147,659$ 5 73.48$ 12,737$ 152,838$ 5 75.69$ 13,120$ 157,435$ 1 61.91$ 1 64.06$ 1 65.99$
2 65.16$ 2 67.43$ 2 69.46$
3 68.58$ 3 70.97$ 3 73.11$
4 72.18$ 4 74.70$ 4 76.95$
5 75.97$ 13,168$ 158,018$ 5 78.63$ 13,629$ 163,550$ 5 80.99$ 14,038$ 168,459$ 1 55.09$ 1 57.03$ 1 58.73$
2 57.98$ 2 60.03$ 2 61.82$
3 61.03$ 3 63.18$ 3 65.07$
4 64.24$ 4 66.50$ 4 68.49$
5 67.62$ 11,721$ 140,650$ 5 69.99$ 12,132$ 145,579$ 5 72.09$ 12,496$ 149,947$ 1 58.91$ 1 60.99$ 1 62.82$
2 62.01$ 2 64.19$ 2 66.12$
3 65.27$ 3 67.56$ 3 69.59$
4 68.70$ 4 71.11$ 4 73.25$
5 72.31$ 12,534$ 150,405$ 5 74.85$ 12,974$ 155,688$ 5 77.10$ 13,364$ 160,368$ 1 49.69$ 1 51.44$ 1 52.98$
2 52.30$ 2 54.14$ 2 55.76$
3 55.05$ 3 56.98$ 3 58.69$
4 57.94$ 4 59.97$ 4 61.77$
5 60.98$ 10,570$ 126,838$ 5 63.12$ 10,941$ 131,290$ 5 65.02$ 11,270$ 135,242$ 1 22.57$ 1 23.36$ 1 24.06$
2 23.75$ 2 24.58$ 2 25.32$
3 25.00$ 3 25.87$ 3 26.65$
4 26.31$ 4 27.23$ 4 28.05$
5 27.69$ 4,800$ 57,595$ 5 28.66$ 4,968$ 59,613$ 5 29.52$ 5,117$ 61,402$ 1 39.14$ 1 40.51$ 1 41.73$
2 41.19$ 2 42.64$ 2 43.92$
3 43.35$ 3 44.88$ 3 46.23$
4 45.63$ 4 47.24$ 4 48.66$
5 48.03$ 8,325$ 99,902$ 5 49.72$ 8,618$ 103,418$ 5 51.22$ 8,878$ 106,538$ 254
252
253
541
542
531
532
528
213
291
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt Librarian
Library Associate
Library Specialist
Lineper/Cable Spl
Lineper/Cable Spl-L
Lineperson/Cable Spl-T
Lineperson/Cable Spl-TL
Lnper/Cbl Spl-Appren
Mailing Svcs Spec
Maintenance Mechanic-Welding

4.g
Packet Pg. 78
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 33.56$ 1 34.73$ 1 35.77$
2 35.32$ 2 36.55$ 2 37.65$
3 37.17$ 3 38.47$ 3 39.63$
4 39.12$ 4 40.49$ 4 41.71$
5 41.17$ 7,136$ 85,634$ 5 42.62$ 7,387$ 88,650$ 5 43.90$ 7,609$ 91,312$ 1 33.56$ 1 34.73$ 1 35.77$
2 35.32$ 2 36.55$ 2 37.65$
3 37.17$ 3 38.47$ 3 39.63$
4 39.12$ 4 40.49$ 4 41.71$
5 41.17$ 7,136$ 85,634$ 5 42.62$ 7,387$ 88,650$ 5 43.90$ 7,609$ 91,312$ 1 51.63$ 1 53.43$ 1 55.05$
2 54.34$ 2 56.24$ 2 57.94$
3 57.19$ 3 59.20$ 3 60.98$
4 60.20$ 4 62.31$ 4 64.18$
5 63.36$ 10,982$ 131,789$ 5 65.58$ 11,367$ 136,406$ 5 67.55$ 11,709$ 140,504$ 1 26.82$ 1 27.77$ 1 28.61$
2 28.23$ 2 29.23$ 2 30.11$
3 29.71$ 3 30.76$ 3 31.69$
4 31.27$ 4 32.37$ 4 33.35$
5 32.91$ 5,704$ 68,453$ 5 34.07$ 5,905$ 70,866$ 5 35.10$ 6,084$ 73,008$ 1 28.70$ 1 29.71$ 1 30.61$
2 30.21$ 2 31.27$ 2 32.22$
3 31.79$ 3 32.91$ 3 33.91$
4 33.46$ 4 34.64$ 4 35.69$
5 35.22$ 6,105$ 73,258$ 5 36.46$ 6,320$ 75,837$ 5 37.56$ 6,510$ 78,125$ 1 33.22$ 1 34.39$ 1 35.41$
2 34.96$ 2 36.19$ 2 37.27$
3 36.80$ 3 38.09$ 3 39.23$
4 38.73$ 4 40.09$ 4 41.29$
5 40.76$ 7,065$ 84,781$ 5 42.19$ 7,313$ 87,755$ 5 43.46$ 7,533$ 90,397$ 1 50.11$ 1 51.87$ 1 53.43$
2 52.74$ 2 54.59$ 2 56.24$
3 55.51$ 3 57.46$ 3 59.19$
4 58.43$ 4 60.48$ 4 62.30$
5 61.50$ 10,660$ 127,920$ 5 63.66$ 11,034$ 132,413$ 5 65.57$ 11,365$ 136,386$ 1 53.62$ 1 55.51$ 1 57.19$
2 56.44$ 2 58.43$ 2 60.19$
3 59.41$ 3 61.50$ 3 63.35$
4 62.53$ 4 64.73$ 4 66.68$
5 65.82$ 11,409$ 136,906$ 5 68.13$ 11,809$ 141,710$ 5 70.18$ 12,165$ 145,974$ 1 38.73$ 1 40.09$ 1 41.29$
2 40.76$ 2 42.19$ 2 43.46$
3 42.90$ 3 44.41$ 3 45.74$
4 45.15$ 4 46.74$ 4 48.14$
5 47.52$ 8,237$ 98,842$ 5 49.19$ 8,526$ 102,315$ 5 50.67$ 8,783$ 105,394$ 1 39.46$ 1 40.85$ 1 42.07$
2 41.53$ 2 42.99$ 2 44.28$
3 43.71$ 3 45.25$ 3 46.61$
4 46.01$ 4 47.63$ 4 49.06$
5 48.43$ 8,395$ 100,734$ 5 50.13$ 8,689$ 104,270$ 5 51.64$ 8,951$ 107,411$ 346
3460
216
241
240
369
552
553
384
381 Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Management Assistant
Management Assistant - S
Marketing Eng
Meter Reader
Meter Reader-Lead
Meter Shop Lead
Metering Technician
Metering Technician – Lead
Mobile Service Tech
Motor Equip Mech-L

4.g
Packet Pg. 79
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 34.17$ 1 35.36$ 1 36.44$
2 35.96$ 2 37.22$ 2 38.35$
3 37.85$ 3 39.17$ 3 40.36$
4 39.84$ 4 41.23$ 4 42.48$
5 41.93$ 7,268$ 87,214$ 5 43.40$ 7,523$ 90,272$ 5 44.71$ 7,750$ 92,997$ 1 36.88$ 1 38.19$ 1 39.33$
2 38.82$ 2 40.19$ 2 41.40$
3 40.86$ 3 42.30$ 3 43.57$
4 43.01$ 4 44.52$ 4 45.86$
5 45.27$ 7,847$ 94,162$ 5 46.86$ 8,122$ 97,469$ 5 48.27$ 8,367$ 100,402$ 1 25.59$ 1 26.49$ 1 27.28$
2 26.93$ 2 27.88$ 2 28.71$
3 28.34$ 3 29.34$ 3 30.22$
4 29.83$ 4 30.88$ 4 31.81$
5 31.40$ 5,443$ 65,312$ 5 32.50$ 5,633$ 67,600$ 5 33.48$ 5,803$ 69,638$ 1 60.76$ 1 62.89$ 1 64.78$
2 63.95$ 2 66.19$ 2 68.18$
3 67.31$ 3 69.67$ 3 71.76$
4 70.85$ 4 73.33$ 4 75.53$
5 74.57$ 12,925$ 155,106$ 5 77.18$ 13,378$ 160,534$ 5 79.50$ 13,780$ 165,360$ 1 32.93$ 1 34.10$ 1 35.13$
2 34.66$ 2 35.89$ 2 36.97$
3 36.48$ 3 37.77$ 3 38.91$
4 38.40$ 4 39.75$ 4 40.95$
5 40.42$ 7,006$ 84,074$ 5 41.84$ 7,252$ 87,027$ 5 43.10$ 7,471$ 89,648$ 1 28.42$ 1 29.43$ 1 30.32$
2 29.91$ 2 30.97$ 2 31.91$
3 31.48$ 3 32.59$ 3 33.58$
4 33.13$ 4 34.30$ 4 35.34$
5 34.87$ 6,044$ 72,530$ 5 36.10$ 6,257$ 75,088$ 5 37.19$ 6,446$ 77,355$ 1 32.26$ 1 33.40$ 1 34.39$
2 33.95$ 2 35.15$ 2 36.19$
3 35.73$ 3 36.99$ 3 38.09$
4 37.61$ 4 38.93$ 4 40.09$
5 39.58$ 6,861$ 82,326$ 5 40.97$ 7,101$ 85,218$ 5 42.20$ 7,315$ 87,776$ 1 50.27$ 1 52.03$ 1 53.60$
2 52.91$ 2 54.76$ 2 56.42$
3 55.69$ 3 57.64$ 3 59.38$
4 58.62$ 4 60.67$ 4 62.50$
5 61.70$ 10,695$ 128,336$ 5 63.86$ 11,069$ 132,829$ 5 65.78$ 11,402$ 136,822$ 1 30.92$ 1 32.00$ 1 32.96$
2 32.54$ 2 33.68$ 2 34.69$
3 34.25$ 3 35.45$ 3 36.51$
4 36.05$ 4 37.31$ 4 38.43$
5 37.94$ 6,576$ 78,915$ 5 39.27$ 6,807$ 81,682$ 5 40.45$ 7,011$ 84,136$ 1 34.30$ 1 35.51$ 1 36.56$
2 36.10$ 2 37.37$ 2 38.48$
3 37.99$ 3 39.33$ 3 40.50$
4 39.98$ 4 41.39$ 4 42.63$
5 42.08$ 7,294$ 87,526$ 5 43.56$ 7,550$ 90,605$ 5 44.87$ 7,777$ 93,330$ 460
348
286
287
230
543
452
451
281
570
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Parks/Golf Crew-Lead
Payroll Analyst
Motor Equipment Mechanic I
Motor Equipment Mechanic II
Offset Equip Op
Overhead Underground Troubleman
Park Maint - Lead
Park Maint Person
Park Ranger
Parking Operations Lead

4.g
Packet Pg. 80
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 34.30$ 1 35.51$ 1 36.56$
2 36.10$ 2 37.37$ 2 38.48$
3 37.99$ 3 39.33$ 3 40.50$
4 39.98$ 4 41.39$ 4 42.63$
5 42.08$ 7,294$ 87,526$ 5 43.56$ 7,550$ 90,605$ 5 44.87$ 7,777$ 93,330$ 1 42.81$ 1 44.31$ 1 45.64$
2 45.06$ 2 46.64$ 2 48.04$
3 47.43$ 3 49.09$ 3 50.56$
4 49.92$ 4 51.67$ 4 53.22$
5 52.54$ 9,107$ 109,283$ 5 54.38$ 9,426$ 113,110$ 5 56.02$ 9,710$ 116,522$ 1 47.31$ 1 48.97$ 1 50.44$
2 49.79$ 2 51.54$ 2 53.09$
3 52.41$ 3 54.25$ 3 55.88$
4 55.16$ 4 57.10$ 4 58.82$
5 58.06$ 10,064$ 120,765$ 5 60.10$ 10,417$ 125,008$ 5 61.91$ 10,731$ 128,773$ 1 47.31$ 1 48.97$ 1 50.44$
2 49.79$ 2 51.54$ 2 53.09$
3 52.41$ 3 54.25$ 3 55.88$
4 55.16$ 4 57.10$ 4 58.82$
5 58.06$ 10,064$ 120,765$ 5 60.10$ 10,417$ 125,008$ 5 61.91$ 10,731$ 128,773$ 1 50.14$ 1 51.89$ 1 53.45$
2 52.77$ 2 54.62$ 2 56.26$
3 55.54$ 3 57.49$ 3 59.22$
4 58.46$ 4 60.51$ 4 62.33$
5 61.53$ 10,665$ 127,982$ 5 63.69$ 11,040$ 132,475$ 5 65.61$ 11,372$ 136,469$ 1 41.04$ 1 42.49$ 1 43.76$
2 43.20$ 2 44.72$ 2 46.06$
3 45.47$ 3 47.07$ 3 48.48$
4 47.86$ 4 49.54$ 4 51.03$
5 50.37$ 8,731$ 104,770$ 5 52.14$ 9,038$ 108,451$ 5 53.71$ 9,310$ 111,717$ 1 37.95$ 1 39.28$ 1 40.46$
2 39.94$ 2 41.34$ 2 42.58$
3 42.04$ 3 43.51$ 3 44.82$
4 44.25$ 4 45.79$ 4 47.17$
5 46.57$ 8,072$ 96,866$ 5 48.20$ 8,355$ 100,256$ 5 49.65$ 8,606$ 103,272$ 1 30.73$ 1 31.80$ 1 32.76$
2 32.34$ 2 33.47$ 2 34.48$
3 34.04$ 3 35.23$ 3 36.29$
4 35.83$ 4 37.08$ 4 38.20$
5 37.71$ 6,536$ 78,437$ 5 39.03$ 6,765$ 81,182$ 5 40.21$ 6,970$ 83,637$ 1 27.29$ 1 28.26$ 1 29.11$
2 28.72$ 2 29.74$ 2 30.64$
3 30.23$ 3 31.30$ 3 32.25$
4 31.82$ 4 32.94$ 4 33.94$
5 33.49$ 5,805$ 69,659$ 5 34.67$ 6,009$ 72,114$ 5 35.72$ 6,191$ 74,298$ 1 28.71$ 1 29.73$ 1 30.63$
2 30.22$ 2 31.29$ 2 32.24$
3 31.81$ 3 32.93$ 3 33.93$
4 33.48$ 4 34.66$ 4 35.71$
5 35.24$ 6,108$ 73,299$ 5 36.48$ 6,323$ 75,878$ 5 37.58$ 6,514$ 78,166$ 3480
352
347
3470
304
513
517
321
313
314
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Payroll Analyst - S
Planner
Planning Arborist
Planning Arborist - S
Plans Check Engr
Plans Examiner
Plant Mechanic
Police Records Specialist - Lead
Police Records Specialist I
Police Records Specialist II

4.g
Packet Pg. 81
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 55.11$ 1 57.04$ 1 58.77$
2 58.01$ 2 60.04$ 2 61.86$
3 61.06$ 3 63.20$ 3 65.11$
4 64.27$ 4 66.52$ 4 68.53$
5 67.65$ 11,726$ 140,712$ 5 70.02$ 12,137$ 145,642$ 5 72.13$ 12,503$ 150,030$ 1 36.24$ 1 37.51$ 1 38.63$
2 38.14$ 2 39.48$ 2 40.66$
3 40.14$ 3 41.55$ 3 42.80$
4 42.25$ 4 43.73$ 4 45.05$
5 44.47$ 7,708$ 92,498$ 5 46.03$ 7,979$ 95,742$ 5 47.42$ 8,219$ 98,634$ 1 46.11$ 1 47.72$ 1 49.16$
2 48.53$ 2 50.23$ 2 51.74$
3 51.08$ 3 52.87$ 3 54.46$
4 53.76$ 4 55.65$ 4 57.32$
5 56.58$ 9,807$ 117,686$ 5 58.57$ 10,152$ 121,826$ 5 60.33$ 10,457$ 125,486$ 1 27.56$ 1 28.52$ 1 29.40$
2 29.01$ 2 30.02$ 2 30.94$
3 30.53$ 3 31.60$ 3 32.56$
4 32.13$ 4 33.26$ 4 34.27$
5 33.82$ 5,862$ 70,346$ 5 35.01$ 6,068$ 72,821$ 5 36.07$ 6,252$ 75,026$ 1 29.24$ 1 30.26$ 1 31.17$
2 30.77$ 2 31.85$ 2 32.81$
3 32.38$ 3 33.52$ 3 34.53$
4 34.08$ 4 35.28$ 4 36.34$
5 35.87$ 6,217$ 74,610$ 5 37.13$ 6,436$ 77,230$ 5 38.25$ 6,630$ 79,560$ 1 31.41$ 1 32.51$ 1 33.49$
2 33.06$ 2 34.22$ 2 35.25$
3 34.80$ 3 36.02$ 3 37.10$
4 36.63$ 4 37.91$ 4 39.05$
5 38.55$ 6,682$ 80,184$ 5 39.90$ 6,916$ 82,992$ 5 41.10$ 7,124$ 85,488$ 1 31.28$ 1 32.38$ 1 33.36$
2 32.92$ 2 34.08$ 2 35.11$
3 34.65$ 3 35.87$ 3 36.95$
4 36.47$ 4 37.75$ 4 38.89$
5 38.38$ 6,653$ 79,830$ 5 39.73$ 6,887$ 82,638$ 5 40.93$ 7,095$ 85,134$ 1 55.57$ 1 57.51$ 1 59.23$
2 58.49$ 2 60.53$ 2 62.34$
3 61.56$ 3 63.71$ 3 65.62$
4 64.79$ 4 67.06$ 4 69.07$
5 68.19$ 11,820$ 141,835$ 5 70.58$ 12,234$ 146,806$ 5 72.70$ 12,601$ 151,216$ 1 55.57$ 1 57.51$ 1 59.23$
2 58.49$ 2 60.53$ 2 62.34$
3 61.56$ 3 63.71$ 3 65.62$
4 64.79$ 4 67.06$ 4 69.07$
5 68.19$ 11,820$ 141,835$ 5 70.58$ 12,234$ 146,806$ 5 72.70$ 12,601$ 151,216$ 1 29.70$ 1 30.75$ 1 31.68$
2 31.26$ 2 32.36$ 2 33.34$
3 32.90$ 3 34.06$ 3 35.09$
4 34.63$ 4 35.85$ 4 36.93$
5 36.45$ 6,318$ 75,816$ 5 37.73$ 6,540$ 78,478$ 5 38.87$ 6,737$ 80,850$ 368
349
3490
209
246
270
232
265
302
303
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Program Coordinator
Project Engineer
Project Engineer - S
Property Evid Tech
Power Engr
Prod Arts/Sci Prog
Prog-Analyst
Program Assistant
Program Assistant I
Program Assistant II

4.g
Packet Pg. 82
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 52.74$ 1 54.58$ 1 56.23$
2 55.51$ 2 57.45$ 2 59.18$
3 58.43$ 3 60.47$ 3 62.29$
4 61.50$ 4 63.65$ 4 65.56$
5 64.73$ 11,220$ 134,638$ 5 67.00$ 11,613$ 139,360$ 5 69.01$ 11,962$ 143,541$ 1 41.44$ 1 42.90$ 1 44.19$
2 43.62$ 2 45.16$ 2 46.52$
3 45.92$ 3 47.54$ 3 48.97$
4 48.34$ 4 50.04$ 4 51.55$
5 50.88$ 8,819$ 105,830$ 5 52.67$ 9,129$ 109,554$ 5 54.26$ 9,405$ 112,861$ 1 56.04$ 1 57.99$ 1 59.74$
2 58.98$ 2 61.04$ 2 62.88$
3 62.08$ 3 64.25$ 3 66.18$
4 65.34$ 4 67.63$ 4 69.66$
5 68.77$ 11,920$ 143,042$ 5 71.18$ 12,338$ 148,054$ 5 73.32$ 12,709$ 152,506$ 1 38.19$ 1 39.53$ 1 40.72$
2 40.19$ 2 41.61$ 2 42.86$
3 42.30$ 3 43.79$ 3 45.11$
4 44.52$ 4 46.09$ 4 47.48$
5 46.86$ 8,122$ 97,469$ 5 48.51$ 8,408$ 100,901$ 5 49.97$ 8,661$ 103,938$ 1 28.88$ 1 29.91$ 1 30.81$
2 30.40$ 2 31.48$ 2 32.43$
3 32.00$ 3 33.13$ 3 34.13$
4 33.68$ 4 34.87$ 4 35.92$
5 35.45$ 6,145$ 73,736$ 5 36.70$ 6,361$ 76,336$ 5 37.81$ 6,554$ 78,645$ 1 40.28$ 1 41.70$ 1 42.95$
2 42.39$ 2 43.89$ 2 45.21$
3 44.62$ 3 46.19$ 3 47.58$
4 46.96$ 4 48.62$ 4 50.08$
5 49.43$ 8,568$ 102,814$ 5 51.17$ 8,869$ 106,434$ 5 52.71$ 9,136$ 109,637$ 1 40.28$ 1 41.70$ 1 42.95$
2 42.39$ 2 43.89$ 2 45.21$
3 44.62$ 3 46.19$ 3 47.58$
4 46.96$ 4 48.62$ 4 50.08$
5 49.43$ 8,568$ 102,814$ 5 51.17$ 8,869$ 106,434$ 5 52.71$ 9,136$ 109,637$ 1 43.21$ 1 44.73$ 1 46.07$
2 45.48$ 2 47.08$ 2 48.49$
3 47.87$ 3 49.55$ 3 51.04$
4 50.38$ 4 52.15$ 4 53.72$
5 53.03$ 9,192$ 110,302$ 5 54.89$ 9,514$ 114,171$ 5 56.54$ 9,800$ 117,603$ 1 45.98$ 1 47.59$ 1 49.03$
2 48.39$ 2 50.09$ 2 51.61$
3 50.93$ 3 52.72$ 3 54.32$
4 53.61$ 4 55.49$ 4 57.17$
5 56.43$ 9,781$ 117,374$ 5 58.41$ 10,124$ 121,493$ 5 60.17$ 10,429$ 125,154$ 1 42.35$ 1 43.83$ 1 45.13$
2 44.57$ 2 46.13$ 2 47.50$
3 46.91$ 3 48.55$ 3 50.00$
4 49.37$ 4 51.10$ 4 52.63$
5 51.96$ 9,006$ 108,077$ 5 53.78$ 9,322$ 111,862$ 5 55.40$ 9,603$ 115,232$ 262
366
554
385
461
360
3600
224
544
512
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Resource Planner
Restoration Lead
SCADA Technologist
Senior Fleet Services Coordinator
Sprinkler Sys Repr
Sr Buyer
Sr Buyer - S
Sr Chemist
Sr Industrial Waste Investigator
Sr Instrum Elect

4.g
Packet Pg. 83
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 34.06$ 1 35.26$ 1 36.32$
2 35.85$ 2 37.11$ 2 38.23$
3 37.73$ 3 39.06$ 3 40.24$
4 39.71$ 4 41.11$ 4 42.35$
5 41.80$ 7,245$ 86,944$ 5 43.27$ 7,500$ 90,002$ 5 44.57$ 7,725$ 92,706$ 1 41.63$ 1 43.09$ 1 44.39$
2 43.82$ 2 45.35$ 2 46.72$
3 46.12$ 3 47.73$ 3 49.17$
4 48.54$ 4 50.24$ 4 51.75$
5 51.09$ 8,856$ 106,267$ 5 52.88$ 9,166$ 109,990$ 5 54.47$ 9,441$ 113,298$ 1 48.39$ 1 50.09$ 1 51.61$
2 50.93$ 2 52.72$ 2 54.32$
3 53.61$ 3 55.49$ 3 57.17$
4 56.43$ 4 58.41$ 4 60.17$
5 59.40$ 10,296$ 123,552$ 5 61.48$ 10,657$ 127,878$ 5 63.33$ 10,977$ 131,726$ 1 48.39$ 1 50.09$ 1 51.61$
2 50.93$ 2 52.72$ 2 54.32$
3 53.61$ 3 55.49$ 3 57.17$
4 56.43$ 4 58.41$ 4 60.17$
5 59.40$ 10,296$ 123,552$ 5 61.48$ 10,657$ 127,878$ 5 63.33$ 10,977$ 131,726$ 1 43.30$ 1 44.81$ 1 46.15$
2 45.57$ 2 47.16$ 2 48.57$
3 47.96$ 3 49.64$ 3 51.12$
4 50.48$ 4 52.25$ 4 53.81$
5 53.13$ 9,209$ 110,510$ 5 54.99$ 9,532$ 114,379$ 5 56.64$ 9,818$ 117,811$ 1 49.46$ 1 51.19$ 1 52.73$
2 52.06$ 2 53.88$ 2 55.50$
3 54.79$ 3 56.71$ 3 58.42$
4 57.67$ 4 59.69$ 4 61.49$
5 60.70$ 10,521$ 126,256$ 5 62.83$ 10,891$ 130,686$ 5 64.72$ 11,218$ 134,618$ 1 35.68$ 1 36.93$ 1 38.04$
2 37.55$ 2 38.87$ 2 40.04$
3 39.52$ 3 40.91$ 3 42.14$
4 41.60$ 4 43.06$ 4 44.35$
5 43.78$ 7,589$ 91,062$ 5 45.32$ 7,855$ 94,266$ 5 46.68$ 8,091$ 97,094$ 1 42.57$ 1 44.07$ 1 45.40$
2 44.81$ 2 46.38$ 2 47.78$
3 47.16$ 3 48.82$ 3 50.29$
4 49.64$ 4 51.38$ 4 52.93$
5 52.25$ 9,057$ 108,680$ 5 54.08$ 9,374$ 112,486$ 5 55.71$ 9,656$ 115,877$ 1 41.26$ 1 42.71$ 1 44.00$
2 43.43$ 2 44.95$ 2 46.31$
3 45.71$ 3 47.31$ 3 48.74$
4 48.11$ 4 49.80$ 4 51.30$
5 50.64$ 8,778$ 105,331$ 5 52.42$ 9,086$ 109,034$ 5 54.00$ 9,360$ 112,320$ 1 26.97$ 1 27.92$ 1 28.75$
2 28.38$ 2 29.38$ 2 30.26$
3 29.87$ 3 30.92$ 3 31.85$
4 31.44$ 4 32.54$ 4 33.52$
5 33.09$ 5,736$ 68,827$ 5 34.25$ 5,937$ 71,240$ 5 35.28$ 6,115$ 73,382$ 506
318
280
261
501
405
251
504
361
3610
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Sr Operator Wqc
Sr Planner
Sr Ranger
Sr Util Field Svc Rep
Sr Water Sys Oper
St Maint Asst
Sr Librarian
Sr. Mech
Sr Mkt Analyst
Sr Mkt Analyst - S

4.g
Packet Pg. 84
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 32.10$ 1 33.22$ 1 34.22$
2 33.78$ 2 34.96$ 2 36.02$
3 35.55$ 3 36.80$ 3 37.91$
4 37.42$ 4 38.73$ 4 39.90$
5 39.38$ 6,826$ 81,910$ 5 40.76$ 7,065$ 84,781$ 5 41.99$ 7,278$ 87,339$ 1 29.21$ 1 30.23$ 1 31.15$
2 30.74$ 2 31.82$ 2 32.78$
3 32.35$ 3 33.49$ 3 34.50$
4 34.05$ 4 35.25$ 4 36.31$
5 35.84$ 6,212$ 74,547$ 5 37.10$ 6,431$ 77,168$ 5 38.22$ 6,625$ 79,498$ 1 31.26$ 1 32.36$ 1 33.34$
2 32.90$ 2 34.06$ 2 35.09$
3 34.63$ 3 35.85$ 3 36.93$
4 36.45$ 4 37.73$ 4 38.87$
5 38.36$ 6,649$ 79,789$ 5 39.71$ 6,883$ 82,597$ 5 40.91$ 7,091$ 85,093$ 1 45.36$ 1 46.94$ 1 48.37$
2 47.74$ 2 49.41$ 2 50.91$
3 50.25$ 3 52.01$ 3 53.58$
4 52.89$ 4 54.74$ 4 56.39$
5 55.67$ 9,649$ 115,794$ 5 57.62$ 9,987$ 119,850$ 5 59.35$ 10,287$ 123,448$ 1 51.29$ 1 53.09$ 1 54.70$
2 53.98$ 2 55.88$ 2 57.57$
3 56.82$ 3 58.82$ 3 60.59$
4 59.81$ 4 61.91$ 4 63.77$
5 62.95$ 10,911$ 130,936$ 5 65.16$ 11,294$ 135,533$ 5 67.12$ 11,634$ 139,610$ 1 47.92$ 1 49.60$ 1 51.10$
2 50.44$ 2 52.21$ 2 53.78$
3 53.09$ 3 54.95$ 3 56.61$
4 55.88$ 4 57.84$ 4 59.58$
5 58.82$ 10,195$ 122,346$ 5 60.88$ 10,553$ 126,630$ 5 62.71$ 10,870$ 130,437$ 1 52.30$ 1 54.13$ 1 55.75$
2 55.05$ 2 56.97$ 2 58.68$
3 57.94$ 3 59.96$ 3 61.76$
4 60.98$ 4 63.11$ 4 65.01$
5 64.18$ 11,125$ 133,494$ 5 66.43$ 11,515$ 138,174$ 5 68.43$ 11,861$ 142,334$ 1 49.50$ 1 51.24$ 1 52.78$
2 52.10$ 2 53.93$ 2 55.55$
3 54.84$ 3 56.76$ 3 58.47$
4 57.72$ 4 59.74$ 4 61.54$
5 60.75$ 10,530$ 126,360$ 5 62.88$ 10,899$ 130,790$ 5 64.77$ 11,227$ 134,722$ 1 55.95$ 1 57.92$ 1 59.66$
2 58.89$ 2 60.96$ 2 62.79$
3 61.98$ 3 64.16$ 3 66.09$
4 65.24$ 4 67.53$ 4 69.56$
5 68.67$ 11,903$ 142,834$ 5 71.08$ 12,321$ 147,846$ 5 73.22$ 12,691$ 152,298$ 1 36.34$ 1 37.62$ 1 38.76$
2 38.25$ 2 39.59$ 2 40.79$
3 40.26$ 3 41.67$ 3 42.93$
4 42.37$ 4 43.86$ 4 45.18$
5 44.59$ 7,729$ 92,747$ 5 46.16$ 8,001$ 96,013$ 5 47.55$ 8,242$ 98,904$ 392
248
288
545
547
546
549
548
550
326
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
St Sweeper Op
Storekeeper
Storekeeper-L
Street Light, Traffic Signal and Fiber – Apprentice
Street Light, Traffic Signal and Fiber – Lead
Street Light, Traffic Signal and Fiber Technician
Substation Electrician
Substation Electrician - Apprentice
Substation Electrician - Lead
Surveying Asst

4.g
Packet Pg. 85
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 39.53$ 1 40.92$ 1 42.16$
2 41.61$ 2 43.07$ 2 44.37$
3 43.80$ 3 45.33$ 3 46.70$
4 46.10$ 4 47.71$ 4 49.15$
5 48.52$ 8,410$ 100,922$ 5 50.22$ 8,705$ 104,458$ 5 51.73$ 8,967$ 107,598$ 1 57.06$ 1 59.07$ 1 60.84$
2 60.06$ 2 62.17$ 2 64.04$
3 63.22$ 3 65.44$ 3 67.41$
4 66.54$ 4 68.88$ 4 70.95$
5 70.04$ 12,140$ 145,683$ 5 72.50$ 12,567$ 150,800$ 5 74.68$ 12,945$ 155,334$ 1 57.06$ 1 59.07$ 1 60.84$
2 60.06$ 2 62.17$ 2 64.04$
3 63.22$ 3 65.44$ 3 67.41$
4 66.54$ 4 68.88$ 4 70.95$
5 70.04$ 12,140$ 145,683$ 5 72.50$ 12,567$ 150,800$ 5 74.68$ 12,945$ 155,334$ 1 38.76$ 1 40.10$ 1 41.32$
2 40.79$ 2 42.21$ 2 43.49$
3 42.93$ 3 44.43$ 3 45.77$
4 45.18$ 4 46.76$ 4 48.17$
5 47.55$ 8,242$ 98,904$ 5 49.22$ 8,531$ 102,378$ 5 50.70$ 8,788$ 105,456$ 1 31.56$ 1 32.67$ 1 33.64$
2 33.22$ 2 34.38$ 2 35.41$
3 34.96$ 3 36.18$ 3 37.27$
4 36.79$ 4 38.08$ 4 39.23$
5 38.72$ 6,711$ 80,538$ 5 40.08$ 6,947$ 83,366$ 5 41.29$ 7,157$ 85,883$ 1 29.23$ 1 30.25$ 1 31.16$
2 30.76$ 2 31.84$ 2 32.80$
3 32.37$ 3 33.51$ 3 34.52$
4 34.07$ 4 35.27$ 4 36.33$
5 35.86$ 6,216$ 74,589$ 5 37.12$ 6,434$ 77,210$ 5 38.24$ 6,628$ 79,539$ 1 33.77$ 1 34.96$ 1 36.02$
2 35.54$ 2 36.80$ 2 37.91$
3 37.41$ 3 38.73$ 3 39.90$
4 39.37$ 4 40.76$ 4 41.99$
5 41.44$ 7,183$ 86,195$ 5 42.90$ 7,436$ 89,232$ 5 44.19$ 7,660$ 91,915$ 1 58.47$ 1 60.51$ 1 62.32$
2 61.54$ 2 63.69$ 2 65.60$
3 64.77$ 3 67.04$ 3 69.05$
4 68.17$ 4 70.56$ 4 72.68$
5 71.75$ 12,437$ 149,240$ 5 74.27$ 12,873$ 154,482$ 5 76.50$ 13,260$ 159,120$ 1 27.76$ 1 28.73$ 1 29.61$
2 29.22$ 2 30.24$ 2 31.16$
3 30.75$ 3 31.83$ 3 32.79$
4 32.36$ 4 33.50$ 4 34.51$
5 34.06$ 5,904$ 70,845$ 5 35.26$ 6,112$ 73,341$ 5 36.32$ 6,295$ 75,546$ 1 32.39$ 1 33.53$ 1 34.54$
2 34.09$ 2 35.29$ 2 36.35$
3 35.88$ 3 37.14$ 3 38.26$
4 37.76$ 4 39.09$ 4 40.27$
5 39.74$ 6,888$ 82,659$ 5 41.14$ 7,131$ 85,571$ 5 42.38$ 7,346$ 88,150$ 3620
229
406
412
407
575
435
434
325
362
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Technologist - S
Theater Specialist
Traf Cont Maint I
Traf Cont Maint Ii
Traf Cont Maint-L
Traffic Engineering Lead
Tree Maint Asst
Tree Maintenance Specialist
Surveyor, Public Wks
Technologist

4.g
Packet Pg. 86
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 31.90$ 1 33.01$ 1 34.00$
2 33.57$ 2 34.74$ 2 35.78$
3 35.33$ 3 36.56$ 3 37.66$
4 37.18$ 4 38.48$ 4 39.64$
5 39.13$ 6,783$ 81,390$ 5 40.50$ 7,020$ 84,240$ 5 41.72$ 7,231$ 86,778$ 1 34.11$ 1 35.31$ 1 36.36$
2 35.90$ 2 37.16$ 2 38.27$
3 37.78$ 3 39.11$ 3 40.28$
4 39.76$ 4 41.16$ 4 42.39$
5 41.85$ 7,254$ 87,048$ 5 43.32$ 7,509$ 90,106$ 5 44.62$ 7,734$ 92,810$ 1 30.04$ 1 31.11$ 1 32.05$
2 31.62$ 2 32.74$ 2 33.73$
3 33.28$ 3 34.46$ 3 35.50$
4 35.03$ 4 36.27$ 4 37.36$
5 36.87$ 6,391$ 76,690$ 5 38.17$ 6,616$ 79,394$ 5 39.32$ 6,815$ 81,786$ 1 31.07$ 1 32.16$ 1 33.13$
2 32.70$ 2 33.85$ 2 34.87$
3 34.42$ 3 35.63$ 3 36.70$
4 36.23$ 4 37.50$ 4 38.63$
5 38.13$ 6,609$ 79,310$ 5 39.47$ 6,841$ 82,098$ 5 40.66$ 7,048$ 84,573$ 1 57.84$ 1 59.86$ 1 61.67$
2 60.88$ 2 63.01$ 2 64.91$
3 64.08$ 3 66.32$ 3 68.32$
4 67.45$ 4 69.81$ 4 71.91$
5 70.99$ 12,305$ 147,659$ 5 73.48$ 12,737$ 152,838$ 5 75.69$ 13,120$ 157,435$ 1 61.91$ 1 64.06$ 1 65.99$
2 65.16$ 2 67.43$ 2 69.46$
3 68.58$ 3 70.97$ 3 73.11$
4 72.18$ 4 74.70$ 4 76.95$
5 75.97$ 13,168$ 158,018$ 5 78.63$ 13,629$ 163,550$ 5 80.99$ 14,038$ 168,459$ 1 37.01$ 1 38.30$ 1 39.46$
2 38.95$ 2 40.31$ 2 41.53$
3 41.00$ 3 42.43$ 3 43.71$
4 43.15$ 4 44.66$ 4 46.01$
5 45.42$ 7,873$ 94,474$ 5 47.01$ 8,148$ 97,781$ 5 48.43$ 8,395$ 100,734$ 1 48.54$ 1 50.24$ 1 51.75$
2 51.09$ 2 52.88$ 2 54.47$
3 53.77$ 3 55.66$ 3 57.33$
4 56.60$ 4 58.58$ 4 60.34$
5 59.57$ 10,325$ 123,906$ 5 61.66$ 10,688$ 128,253$ 5 63.51$ 11,008$ 132,101$ 1 39.81$ 1 41.22$ 1 42.45$
2 41.90$ 2 43.38$ 2 44.68$
3 44.10$ 3 45.66$ 3 47.03$
4 46.42$ 4 48.06$ 4 49.50$
5 48.86$ 8,469$ 101,629$ 5 50.58$ 8,767$ 105,206$ 5 52.10$ 9,031$ 108,368$ 1 38.82$ 1 40.19$ 1 41.39$
2 40.86$ 2 42.30$ 2 43.56$
3 43.01$ 3 44.52$ 3 45.85$
4 45.27$ 4 46.86$ 4 48.26$
5 47.65$ 8,259$ 99,112$ 5 49.32$ 8,549$ 102,586$ 5 50.80$ 8,805$ 105,664$ 430
431
432
223
272
273
219
310
486
480
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Tree Trim/Ln Clr
Tree Trim/Ln Clr-L
Tree Trm/Ln Clr Asst
Util Acctg Tech
Util Comp Tech
Util Comp Tech-L
Util Credit/Col Spec
Util Engr Estimator
Util Fld Svcs Rep
Util Install/Rep

4.g
Packet Pg. 87
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 32.92$ 1 34.08$ 1 35.11$
2 34.65$ 2 35.87$ 2 36.95$
3 36.47$ 3 37.75$ 3 38.89$
4 38.38$ 4 39.73$ 4 40.93$
5 40.40$ 7,003$ 84,032$ 5 41.82$ 7,249$ 86,986$ 5 43.08$ 7,467$ 89,606$ 1 42.37$ 1 43.85$ 1 45.16$
2 44.59$ 2 46.15$ 2 47.53$
3 46.93$ 3 48.57$ 3 50.03$
4 49.40$ 4 51.12$ 4 52.66$
5 51.99$ 9,012$ 108,139$ 5 53.81$ 9,327$ 111,925$ 5 55.43$ 9,608$ 115,294$ 1 44.11$ 1 45.66$ 1 47.04$
2 46.43$ 2 48.06$ 2 49.51$
3 48.87$ 3 50.58$ 3 52.11$
4 51.44$ 4 53.24$ 4 54.85$
5 54.14$ 9,384$ 112,611$ 5 56.04$ 9,714$ 116,563$ 5 57.73$ 10,007$ 120,078$ 1 44.11$ 1 45.66$ 1 47.04$
2 46.43$ 2 48.06$ 2 49.51$
3 48.87$ 3 50.58$ 3 52.11$
4 51.44$ 4 53.24$ 4 54.85$
5 54.14$ 9,384$ 112,611$ 5 56.04$ 9,714$ 116,563$ 5 57.73$ 10,007$ 120,078$ 1 38.38$ 1 39.71$ 1 40.91$
2 40.39$ 2 41.80$ 2 43.06$
3 42.51$ 3 44.00$ 3 45.32$
4 44.74$ 4 46.31$ 4 47.70$
5 47.09$ 8,162$ 97,947$ 5 48.74$ 8,448$ 101,379$ 5 50.21$ 8,703$ 104,437$ 1 42.61$ 1 44.11$ 1 45.43$
2 44.85$ 2 46.43$ 2 47.82$
3 47.21$ 3 48.87$ 3 50.34$
4 49.69$ 4 51.44$ 4 52.99$
5 52.31$ 9,067$ 108,805$ 5 54.15$ 9,386$ 112,632$ 5 55.78$ 9,669$ 116,022$ 1 41.11$ 1 42.55$ 1 43.84$
2 43.27$ 2 44.78$ 2 46.14$
3 45.54$ 3 47.13$ 3 48.56$
4 47.93$ 4 49.61$ 4 51.11$
5 50.45$ 8,745$ 104,936$ 5 52.22$ 9,051$ 108,618$ 5 53.79$ 9,324$ 111,883$ 1 64.77$ 1 67.04$ 1 69.05$
2 68.17$ 2 70.56$ 2 72.68$
3 71.75$ 3 74.27$ 3 76.50$
4 75.52$ 4 78.17$ 4 80.52$
5 79.49$ 13,778$ 165,339$ 5 82.28$ 14,262$ 171,142$ 5 84.75$ 14,690$ 176,280$ 1 61.53$ 1 63.68$ 1 65.59$
2 64.76$ 2 67.03$ 2 69.04$
3 68.16$ 3 70.55$ 3 72.67$
4 71.74$ 4 74.26$ 4 76.49$
5 75.51$ 13,088$ 157,061$ 5 78.16$ 13,548$ 162,573$ 5 80.51$ 13,955$ 167,461$ 1 51.93$ 1 53.76$ 1 55.37$
2 54.66$ 2 56.58$ 2 58.28$
3 57.53$ 3 59.55$ 3 61.34$
4 60.55$ 4 62.68$ 4 64.56$
5 63.73$ 11,047$ 132,558$ 5 65.97$ 11,435$ 137,218$ 5 67.95$ 11,778$ 141,336$ 481
479
363
3630
271
215
233
307
322
284 Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Util Install/Rep Ast
Util Install/Rep-L
Util Key Acct Rep
Util Key Acct Rep -S
Util Locator
Sustainability Programs Administrator
Util Rate Analyst
Util Syst Oper
Util Syst Oper in Training
Utilities Engineer Estimator Lead

4.g
Packet Pg. 88
Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 43.34$ 1 44.87$ 1 46.22$
2 45.62$ 2 47.23$ 2 48.65$
3 48.02$ 3 49.71$ 3 51.21$
4 50.54$ 4 52.32$ 4 53.90$
5 53.20$ 9,221$ 110,656$ 5 55.07$ 9,545$ 114,546$ 5 56.73$ 9,833$ 117,998$ 1 40.35$ 1 41.77$ 1 43.02$
2 42.47$ 2 43.96$ 2 45.28$
3 44.70$ 3 46.27$ 3 47.66$
4 47.05$ 4 48.70$ 4 50.16$
5 49.52$ 8,583$ 103,002$ 5 51.26$ 8,885$ 106,621$ 5 52.80$ 9,152$ 109,824$ 1 32.89$ 1 34.05$ 1 35.07$
2 34.62$ 2 35.84$ 2 36.91$
3 36.44$ 3 37.72$ 3 38.85$
4 38.35$ 4 39.70$ 4 40.89$
5 40.36$ 6,996$ 83,949$ 5 41.78$ 7,242$ 86,902$ 5 43.04$ 7,460$ 89,523$ 1 27.29$ 1 28.26$ 1 29.11$
2 28.72$ 2 29.74$ 2 30.64$
3 30.23$ 3 31.30$ 3 32.25$
4 31.82$ 4 32.94$ 4 33.94$
5 33.49$ 5,805$ 69,659$ 5 34.67$ 6,009$ 72,114$ 5 35.72$ 6,191$ 74,298$ 1 30.22$ 1 31.29$ 1 32.24$
2 31.81$ 2 32.93$ 2 33.93$
3 33.48$ 3 34.66$ 3 35.71$
4 35.24$ 4 36.48$ 4 37.58$
5 37.09$ 6,429$ 77,147$ 5 38.39$ 6,654$ 79,851$ 5 39.55$ 6,855$ 82,264$ 1 31.85$ 1 32.96$ 1 33.96$
2 33.52$ 2 34.69$ 2 35.74$
3 35.28$ 3 36.51$ 3 37.62$
4 37.13$ 4 38.43$ 4 39.59$
5 39.08$ 6,774$ 81,286$ 5 40.45$ 7,011$ 84,136$ 5 41.67$ 7,223$ 86,674$ 1 36.37$ 1 37.65$ 1 38.78$
2 38.28$ 2 39.63$ 2 40.82$
3 40.29$ 3 41.71$ 3 42.96$
4 42.41$ 4 43.90$ 4 45.22$
5 44.64$ 7,738$ 92,851$ 5 46.21$ 8,010$ 96,117$ 5 47.60$ 8,251$ 99,008$ 1 33.41$ 1 34.58$ 1 35.63$
2 35.16$ 2 36.40$ 2 37.50$
3 37.01$ 3 38.31$ 3 39.47$
4 38.95$ 4 40.32$ 4 41.54$
5 41.00$ 7,107$ 85,280$ 5 42.44$ 7,356$ 88,275$ 5 43.72$ 7,578$ 90,938$ 1 38.17$ 1 39.51$ 1 40.69$
2 40.17$ 2 41.58$ 2 42.83$
3 42.28$ 3 43.76$ 3 45.08$
4 44.50$ 4 46.06$ 4 47.45$
5 46.84$ 8,119$ 97,427$ 5 48.48$ 8,403$ 100,838$ 5 49.94$ 8,656$ 103,875$ 1 29.43$ 1 30.46$ 1 31.38$
2 30.97$ 2 32.06$ 2 33.03$
3 32.59$ 3 33.74$ 3 34.76$
4 34.30$ 4 35.51$ 4 36.58$
5 36.10$ 6,257$ 75,088$ 5 37.37$ 6,477$ 77,730$ 5 38.50$ 6,673$ 80,080$ 500
509
510
290
289
274
482
484
499
507
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
WQC Plt Oper I
WQC Plt Oper II
WQC Plt Oper Trn
Utl Install Repair Lead-Welding Cert
Utl Install Repair-Welding Cert
Volunteer Coord
Water Meter Rep Asst
Water Meter Repair
Water Sys Oper I
Water Sys Oper II

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Job
Code FLSA Job Title
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual Effective 04/27/2019
(3.5% General Increase)
Effective 11/23/2019
(3.5% General Increase)
Effective 11/21/2020
(3% General Increase)
Service Employees International Union (SEIU)
Salary Schedule
1 31.01$ 1 32.11$ 1 33.07$
2 32.64$ 2 33.79$ 2 34.81$
3 34.35$ 3 35.56$ 3 36.64$
4 36.15$ 4 37.43$ 4 38.56$
5 38.05$ 6,595$ 79,144$ 5 39.39$ 6,828$ 81,931$ 5 40.58$ 7,034$ 84,406$ 1 46.69$ 1 48.33$ 1 49.78$
2 49.14$ 2 50.87$ 2 52.39$
3 51.72$ 3 53.54$ 3 55.14$
4 54.44$ 4 56.35$ 4 58.04$
5 57.30$ 9,932$ 119,184$ 5 59.31$ 10,280$ 123,365$ 5 61.09$ 10,589$ 127,067$ 6 58.74$ 6 60.80$ 6 62.62$
7 60.21$ 7 62.32$ 7 64.19$
1 39.52$ 1 40.90$ 1 42.13$
2 41.59$ 2 43.05$ 2 44.34$
3 43.77$ 3 45.31$ 3 46.67$
4 46.07$ 4 47.69$ 4 49.12$
5 48.49$ 8,405$ 100,859$ 5 50.19$ 8,700$ 104,395$ 5 51.70$ 8,961$ 107,536$ 6 49.71$ 6 51.45$ 6 53.00$
7 50.96$ 7 52.74$ 7 54.33$
1 41.61$ 1 43.07$ 1 44.37$
2 43.80$ 2 45.33$ 2 46.70$
3 46.10$ 3 47.71$ 3 49.15$
4 48.52$ 4 50.22$ 4 51.73$
5 51.07$ 8,852$ 106,226$ 5 52.86$ 9,162$ 109,949$ 5 54.45$ 9,438$ 113,256$ 6 52.35$ 6 54.19$ 6 55.82$
7 53.66$ 7 55.55$ 7 57.22$
226
315
298
316
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Wtr Mtr Crs Cn Tec
Public Safety Dispatcher - Lead
Public Safety Dispatcher I
Public Safety Dispatcher II
Longevity Steps
Longevity Steps
Longevity Steps
Longevity Steps
Longevity Steps
Longevity Steps
Longevity Steps
Longevity Steps
Longevity Steps

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City of Palo Alto (ID # 13814)
City Council Staff Report

Meeting Date: 1/10/2022

City of Palo Alto Page 1

Title: Adopt a Park Improvement Ordinance for the Replacement of the Palo Alto Flood Basin Tide Gate Structure in the City's Baylands From: City Manager
Lead Department: Community Services

Recommendation
Staff and the Parks and Recreation Commission recommend that the City Council:

1. As a responsible agency under CE QA, c onsider the Mitigated Negative Declaration (MND) prepared and approved by lead agency Santa Clara Valley Water District (Valley Water); and

2. Adopt a Park Improvement Ordinance ( Attachment A ) authorizing Valley Water’s Palo Alto Flood Basin Tide Gate Structure Replacement Project (Project), which will construct a new replacement tide gate structure (Structure) within the City’s Baylands.

Background
The levees forming the Palo Alto Flood Ba sin (Flood Basin) were built by the City of Palo Alto (City) in the 1940s and the associated tide gate structure (Structure) was constructed in 1957 by the former Santa Clara County Flood Control and Water Conservation District (now Santa Clara Valley Wate r District, also known as Valley Water), Santa Clara County and the City. The Structure is located along the Bay shoreline in Palo Alto, east of the Palo Alto Municipal Airport and Palo Alto Baylands Nature Preserve. The floodwaters stored in the Flood Bas in are released to the Bay through eight cells with 16 tide gates (15 passive gates and one motorized sluice gate) that comprise the overall tide gate structure. The purpose of the passive tide gates is to regulate water elevation in the Flood Basin such t hat when the water elevation in the basin is higher than the tidal elevation of the Bay, the passive tide gates are pushed open by water pressure and discharge water from the Flood Basin to the Bay. When the water surface elevation in the Flood Basin is lo wer than the Bay, the passive tide gates are held shut by water pressure from the Bay, to prevent full tidal inundation.

In 1977, the City requested to change one of the passive tide gates to a motorized sluice gate for a mitigation project agreed to by the United States Army Corps of Engineers and the City for the Palo Alto Refuse Disposal Area. In 1978, the City forwarded the plans and specifications for the gate modification and Valley Water issued a permit to the City for the gate modification. 5 Packet Pg. 91

City of Palo Alto Page 2

The Ci ty operates the motorized sluice gate to improve water quality within the Flood Basin while considering optimal Flood Basin water elevation.

The Structure has been regularly inspected and maintained by Valley Water. In 2011, Valley Water discovered that water was flowing beneath the Structure, undermining the function of the tide gates and potentially its structural stability. In 2012, Valley Water completed emergency repairs to stop seepage flow beneath the Structure. As part of that effort, Valley Water staff prepared a post construction report (as required by the United States Army Corps of Engineers’ Emergency Permit) which detailed the emergency work and recommended replacement of the Structure.

In 2014, Valley Water retained the services of Mark Tho mas & Company (MT) to perform structural inspections and prepare an assessment report for the Structure. The report concluded that the Structure was generally in fair condition and recommended minor structural repairs.

In 2017, Valley Water retained a con struction contractor to perform minor repairs. The work was complicated due to cracks found in the bottom slab and inability to dewater for the repair work, which resulted in the contract being terminated without completing the work.

Subsequently, a structural assessment was performed by MT in October 2017 which concluded that the structure would be functional for a couple more years and recommended the Structure be replaced.

In 2018, after project objectives were changed to replace (rather than repair) th e Structure, a new team was assigned to the Project to commence planning and design of the new Structure.

The new Project team also prepared an Emergency Action Plan in coordination with the City of Palo Alto in 2019 to provide guidance for potential flooding emergencies in the interim. MT was engaged to perform additional structural assessments in January 2020 and January 2021, and both assessments concluded that the Structure would still be functional for another couple of years.

Project Description
The Project objectives include the following:
• Prevent failure of the existing Structure, which would result in increased risk of coastal and fluvial flooding;
• Maintain or improve the level of flood protection for Matadero, Adobe, and Barron Creeks, including during Project construction;
• Construct a new motorized sluice gate on the City’s behalf which will be used to maintain or improve water quality within the Flood Basin; and • Upsize the Structure to function with two feet of future sea-level rise.

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The Proje ct would involve construction of a new 132 -foot-long tide gate structure slightly inboard (upstream) and southeast of the existing 113 -foot-long deteriorating Structure, removal of the existing Structure and levee, and construction of a new levee that ties into the new tide gate structure. The Project would be divided into two phases and constructed in four construction seasons. The existing Structure would continue to function until the new structure is completed by the end of second phase. Phase 1 would i nvolve installation of the first dewatering system; construction of the new tide gate structure and east levee transition; and removal of the existing levee in front of the new structure. Phase 2 would involve installation of the second dewatering system; construction of the west levee transition; and removal of the existing Structure.

The Project would construct a new motorized sluice gate with Supervisory Control And Data Acquisition (SCADA) system and water elevation sensors which would be monitored an d operated by the City and used to maintain or improve water quality within the Flood Basin. The existing sluice gate constructed in 1978 is now over 40 years old and shows aging. Some of the basic operations such as closing the gate must be done by manual physical cranking rather than use of the motor. Similarly, the existing SCADA system cannot currently be used to automate opening and closing of the sluice gate. The new sluice gate infrastructure would remove the existing City owned sluice gate and repla ce with a new City owned sluice gate and SCADA system integrated with the replacement tide gate Structure.

Maintenance of the Site
Similar to current operations, the City will monitor, operate, and maintain the sluice gate, water elevation sensors, commun ication control system related to sluice gate, and SCADA system.

Similar to current operations, Valley Water staff would continue to support debris removal from the trash racks and/or tide gates as needed.

Maintenance of the City’s sluice gate should be reduced with the new Structure by installing trash racks on both the San Francisco Bay (Bay) side as well as the Flood Basin side. The existing sluice gate only has a trash rack on the Flood Basin side. When the sluice gate is opened, water from the Bay ent ers into the Flood Basin through the sluice gate. The incorporation of the additional trash rack on Bay side of the sluice gate should reduce the risk of debris interference and subsequential potential damage to the sluice gate system.

Discussion
City of Palo Alto staff and Valley Water staff have been working together on this Project since 2018. This project replaces critical flood, environmental, and recreational infrastructure critical to the City, Valley Water, wildlife, and the public.

The Project will require temporary closures to portions of the Trail to accommodate construction of the replacement Structure work. A diagram illustrating anticipated Trail closures is included in Attachment A. If the replacement Structure is not constructed, future degradation 5 Packet Pg. 93

City of Palo Alto Page 4

of the existing Structure will occur and would eventually require closure of the Trail for an unknown duration of time.

The replacement Structure will include a dedicated concrete bay with motor driven sluice gate solely for the City’s use of maintaining water quality within the Flood Basin and controlling mosquito breeding. This new motor operated sluice gate will replace the existing motor operated sluice gate which is owned and operated by the City. The Structure will also include new water level sensors and SCADA system to improve flexibility and efficiency for the City’s sluice gate operations. The new sluice gate will enable remote operation of the sluice gate.

The replacement Structure, with its improved operations and maintenance features and improved hydraulic performance, is anticipated to reduce mosquito breeding within the Flood Basin compared to the existing conditions.

On June 22, 2021, the Parks and Recreation Commission (Commission) reviewed and voted (7:0) to recommend that Ci ty Council adopt a Park Improvement Ordinance for the improvements to the Palo Alto Flood Basin Tide Gate structure ( Staff Report). On July 10, 2021, Valley Water informed City staff that improvements to the existing levee trail surface, which was pa rt of the project and included in the Park Improvement Ordinance, were going to be removed from the scope of work. Because of this change in the scope of the project, the Park Improvement Ordinance was updated and reviewed again by the Commission . On August 24, 2021, the Commission voted (7:0) to recommend that City Council adopt a Park Improvement Ordinance for the improvements to the Palo Alto Flood Basin Tide Gate structure (Staff Report).

The proposed trail improvements were intended to smoothen and strengthen the t rail surface as needed based on existing conditions and would be performed by Valley Water’s Operations & Maintenance staff. However, Valley Water Operations & Maintenance staff are unable to complete the entire trail stretch within the construction window , thereby reducing the benefit of the previously proposed trail improvements. Additionally, the outlook for starting the trail improvement work on time is unlikely due to the anticipated timing of regulatory permits, further diminishing the benefit of the proposed trail improvements. Valley Water determined that the proposed trail improvements were no longer justified when comparing the reduced benefits to the impacts of temporary trail closure and high cost.

While the previously proposed trail surface improvement work would have improved the ability for the existing levees to facilitate construction equipment loading, it would have also temporarily closed the trail for at least three months this year. Although omission of the proposed trail surface improv ement work comes with an increased risk for future construction complications and delays, the planned duration of construction remains unchanged at four years. In lieu of the proposed trail improvements, there will be an increased need for the contractor to perform in-kind repairs to the levee trail surface during the normal work seasons.

The contractor can lighten their truck loading to find the optimum balance between number of truck trips and damage to the levee surface due to heavier loading, thereby mi nimizing the 5 Packet Pg. 94

City of Palo Alto Page 5

amount levee trail surface repair work required. There are similar South Bay Salt Pond levees that see high traffic use of haul trucks, and there are provisions that limit the use of loaded haul trucks on these levees following a significant rain event to prevent damage to the levees. Valley Water will use similar provisions to mitigate risk of levee damage. The project specifications will also require that the contractor repair the trail surface to the satisfaction of Valley Water and the City of Palo Alto at the end of each construction season, prior to opening to trail users.

Timeline
The project construction was originally planned to begin in September 2022, however, due to a longer than expected permitting process and expanded material procurement lead times, Valley Water anticipates the following schedule:

September 2023: Start of Year 1 (Season 1) Construction September 2024: Start of Year 2 (Season 2) Construction September 2025: Start of Year 3 (Season 3) Construction September 2026: Start of Year 4 (Season 4) Construction

Resource Impact
Valley Water has requested cost sharing for specific project elements. Discussions for cost sharing between the City and Valley Water are ongoing. Any funding recommendations resulting from these dis cussions will be brought to Council for consideration. Post-construction operations and maintenance costs are expected to be reduced compared to existing conditions.

Stakeholder Engagement
On February 24, 2020, Valley Water met wi th stakeholders and membe rs of the public to discuss the project and collect feedback. On June 24, 2020, Valley Water hosted a virtual community meeting to discuss the project and collect more community feedback.

The project was discussed with the Parks and Recreation Commission on June 22, 2021, and on August 24, 2021.

Environmental Review
Valley Water is the Lead Agency under California Environmental Quality Act (CEQA). The CEQA Final Mitigated Negative Declaration is available at the Valley Water Project website:
https://www.valleywater.org/pafbtidegates. The City is a Responsible Agency under CEQA for this project and has considered the Final Mitigated Negative Declaration as required by CEQA regulation 15096.

Attachments:
• Attachment5.a: Attachment A: Park Improvement Ordinance for Replacement of the Palo Alto Flood Basin Tide Gate at Baylands
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*NOT YET APPROVED*
1 ORDINANCE NO. _____
Ordinance of The Council of The City of Palo Alto Approving a Plan for Improvements to the
Palo Alto Flood Basin Tide Gate Structure as part of the Palo Alto Flood Basin Tide Gate Structure Replacement Project

The Council of the City of Palo Alto does ORDAIN as follows:

SECTION 1. Findings. The City Council finds and declares that:

(a) Article VIII of the Charter of the City of Palo Alto and Section 22.08.005 of the Palo Alto Municipal Code (PAMC) require that, before any substantial building, construction, reconstruction or development is commenced or approved, upon or with respect to any land held by the City for park purposes, the Council shall first cause to be prepared and by ordinance approve and adopt a plan therefor.

(b) The Palo Alto Flood Basin Tide Gate Structure (Structure) is part of the Adobe Creek Loop Trail (Trail). The Structure is located in the City’s Baylands, which is dedicated parkland (See PAMC § 22.08.020 et seq.) Based on the Conditional Structural Assessment of the existing Structure and reduced functionality, the Structure is planned to be replaced.

(c) The City of Palo Alto intends to authorize Santa Clara Valley Water District (Valley Water) to construct a replacement Structure. The new Structure will replace the existing 1957- built Structure which has outlived its intended service life and has been recommended for replacement.

(d) The Plan of improvements shall comprise, as follows:

(1) The Project will construct a replacement Structure near the existing Structure, and new levees to connect the Trail to the replacement Structure. The project will re-align a portion of the levees and Trail as required to accommodate the replacement Structure location. The existing Structure will be removed after the replacement Structure and levees are constructed. Select plan sheets showing the in-progress design are attached as Exhibit “A”.
(2) The Project will require temporary closures to portions of the Trail to accommodate construction of the replacement Structure and connecting levee work. A diagram illustrating anticipated Trail closures is attached as Exhibit “B”. If the replacement Structure is not constructed, future degradation of the existing Structure will occur and would eventually require closure of the Trail for an unknown duration of time.
(3) The replacement Structure will include a dedicated concrete bay with motor driven sluice gate solely for the City’s use of maintaining water quality within the PAFB and controlling mosquito breeding. This new motor operated sluice gate will replace the existing motor operated sluice gate which is owned and operated by

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*NOT YET APPROVED*
2 the City. The Structure will also include new water level sensors and Supervisory Control and Data Acquisition (SCADA) system to improve flexibility and efficiency for the City’s sluice gate operations. The new sluice gate will enable remote operation of the sluice gate.

The replacement Structure with its improved operations and maintenance features and improved hydraulic performance is anticipated to reduce mosquito breeding within the PAFB compared to the existing conditions.

(e) The Project described above and as otherwise depicted in the attached exhibits is consistent with recreation and conservation purposes

(f) The Council desires to approve the Plans for the Project described above and as depicted in Exhibit "A" and Exhibit “B”.

SECTION 2. The Council hereby approves the Plan for construction of the Palo Alto Flood Basin Tide Gate Structure Replacement Project as described in this Ordinance.

SECTION 3. Valley Water is the Lead Agency for the Project under the California Environmental Quality Act (CEQA). Valley Water performed an Initial Study and determined that a Mitigated Negative Declaration (MND) is the appropriate level of review. A resolution adopting the Final MND (Resolution) was signed by Valley Water’s Board on April 27, 2021. The Final MND and Resolution are available online from the project website:
https://www.valleywater.org/pafbtidegates. The City Council finds that the City of Palo Alto is a responsible agency under CEQA for the Project and certifies that it has reviewed and considered the information contained in Valley Water’s MND.

Valley Water has applied for regulatory permits from six resource agencies and are currently working with the resource agencies for mitigation requirements and permit conditions.

SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

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*NOT YET APPROVED*
3 ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Deputy City Attorney City Manager

____________________________
Director of Community Services

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EXHIBIT A
PAGE 1 OF 4

EXHIBIT A

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EXHIBIT A

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EXHIBIT A

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EXHIBIT A

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EXHIBIT B PAGE 1 OF 3
Dates above are tentative target dates subject to change pending project development and acquisition of all required project permits.

Year 1 Construction 9/1/2022 1/31/2023 5 months CLOSED CLOSED CLOSED CLOSED CLOSED No Construction 2/1/2023 8/31/2023 7 months OPEN OPEN CLOSED OPEN OPEN Year 2 Construction 9/1/2023 1/31/2024 5 months CLOSED CLOSED CLOSED CLOSED CLOSED No Construction 2/1/2024 8/31/2024 7 months OPEN OPEN CLOSED OPEN OPEN Year 3 Construction 9/1/2024 1/31/2025 5 months CLOSED CLOSED CLOSED CLOSED OPEN No Construction 2/1/2025 8/31/2025 7 months OPEN OPEN OPEN OPEN OPEN Year 4 Construction 9/1/2025 11/30/2025 3 months CLOSED CLOSED CLOSED CLOSED OPEN Project completed 12/1/2025 Onward N/A OPEN OPEN OPEN OPEN OPEN Total Cummulative Trail Closure Duration Per Trail Location = 21.5 months 21.5 months 35.5
months

21.5 months

13.5 months

Target Time Period Trail Location (See Map Below)
Activity Start End Duration Segment #1 Tide Gate Structure Segment #2 Segment #3 Segment #4

3.5 18 months
18 months
32 months
18 months
10 months

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OTHER TRAIL

ROUTES & DETOUR

OPEN ALL THE TIME
Byxbee Park
Parking Lot
Embarcadero Rd
HWY 101
San Antonio Rd

EXISTING

TIDE GATE

STRUCTURE
TRAIL SEGMENT #1
TRAIL SEGMENT #2
TRAIL SEGMENT #3
TRAIL SEGMENT #4

CONSTRUCTION
SIGN
EXHIBIT B PAGE 2 OF 3

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SIGN SIZE
4’ x 4’
48” x 48”
5’ x 3”

DETAIL - (TRUCK AND PEDESTRIAN USE)
12' TO 14'
Construction Sign for Palo Alto Flood Basin Project
EXHIBIT B PAGE 3 OF 3

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City of Palo Alto (ID # 13865)
City Council Staff Report

Meeting Date: 1/10/2022

City of Palo Alto Page 1

Title: Adoption of Two Resolutions Authorizing Participation in the California Arrearage Payment Program (CAPP) for Gas and Electric Utilities, and the California Water and Wastewater Arrearage Payment Program (CWWAPP), Including Acceptance of Funds and Cr editing Eligible Utility Accounts; and Approval of Amendments to the Fiscal Year 2022 Budget Appropriation Ordinance for the Electric, Gas, and Water Funds to Account for CWWAPP and CAPP Funds
From: City Manager
Lead Department: Utilities

Recommended Motion
Staff recommends that the City Council:

1. Adopt a Resolution authorizing participation in the California Arrearage Payment Program (CAPP) for gas and electric utilities, including the acceptance of funds in the anticipated amount of $735,969, and upon receipt of funds the application of credits to delinquent utility accounts; and

2. Adopt a Resolution authorizing participation in the California Water and Wastewater Arrearage Payment Program (CWWAPP), including the acceptance of funds in the amount of $274,857, and upon receipt of funds the application of credits to delinquent utility accounts; and

3. Approve amendments to the Fiscal Year 2022 Budget Appropriation Ordinance (requires a majority vote) for the
a. Electric Fund, by:
i. Increasing the Revenue from the Federal Government by $486,876; ii. Decreasing Utility Sales Revenue by $486,876;
b. Gas Fund, by:
i. Increasing the Revenue from the Federal Government by $249,093; ii. Decreasing Utility Sales Revenue by $249,093;
c. Water Fund, by:
i. Increasing the Revenue from the Federal Government by $274,857; and ii. Decreasing Utility Sales Revenue by $274,857.

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City of Palo Alto Page 2

Executive Summary
In March 2020, t he State of California implemented a moratorium on electric, natural gas, and water utility disconnections as a result of the COVID-19 pandemic. To provide utility consumers financial relief, the State developed two financial assistance programs to pay for delinquent utility balances of 60 days or more incurred during the COVID-19 pandemic bill relief period , from March 4, 2020 through June 15, 2021.

The City of Palo Alto Utilities (CPAU) applied to the California Arrearage Payment Program (CAPP) for electric and gas utilities and California Water and Wastewater Arrearage Payment Program (CWWAPP) to request funding to assist utility customers in repay ing past due balances for electric, gas and water service. The City has been granted $247,857 from CWWAPP and anticipates a grant of $735,969 from CAPP . Program funds will be distributed by January 31, 2022 and must be promptly applied to customer accounts . Funding for these programs is provided through Federal COVID-19 Relief funding. T he State programs are distributing the funds on behalf of the federal government.

Background
The California Arrearage Payment Program (CAPP) will offer financial assistanc e for California energy utility customers to help reduce past due energy bill balances that increased during the COVID-19 pandemic. Established by Governor Newsom and the California Legislature in the 2021-22 State Budget and administered by the Department of Community Services and Development (CSD), CAPP dedicates $1 billion in federal American Rescue Plan Act funding to address Californian's energy debts. The program will provide financial assistance to residential and commercial customers that have delin quent utility balances of 60 days or more between March 4, 2020 through June 15, 2021.

The California Water and Wastewater Arrearage Payment Program (CWWAPP) is funded through $985 million in federal funding allocated by the state legislature . The State Water Board was directed by the state legislature to administer CWWAPP, allocating funds to provide relief to community water and wastewater systems for unpaid bills related to the pandemic.

The funding will cover water and wastewater arrearages from resid ential and commercial customers accrued between March 4, 2020 through June 15, 2021.

The Program will initially prioritize drinking water residential and commercial arrearages.

Funding to community water systems , like CPAU, will be disbursed through Janua ry 31, 2022. If the Program still has funding available, it will extend to wastewater residential and commercial arrearages by February 2022.

Due to the COVID -19 pandemic, CPAU has seen a dramatic increase in arrears. Prior to the pandemic, the total arrearage greater than 60 days was below $75,000. As of November 23, 2021, total utility customer arrearage greater than 60 days is $2,707,888 for all utilities (Table 1). Additional funding from the CAPP and CWWAPP programs will assist customers in reducing 6 Packet Pg. 107

City of Palo Alto Page 3

these past due balances. For the CAPP and CWWAPP pandemic relief period, covering March 4, 2020 through June 15, 2021, the total arrearage balance is $2,030,948 (Table 2).

Table 1: Utility Arrearage Balance Greater than 60 days as of November 23, 2021 Utility 60 - 89 days 90 - 180 days > 180 days Grand Total Electric 183,445 221,614 636,196 1,041,254 Gas 44,307 92,635 313,666 450,609 Water 72,203 96,365 250,465 419,033 Sewer 33,854 61,642 223,431 318,927 Fiber 26,511 (92,317) 114,906 49,100 Refuse 40,103 79,439 248,872 368,415 Storm 8,547 13,803 38,198 60,549 408,971 473,182 1,825,735 2,707,888

Table 2: Utility Arrearage Balance from March 4, 2020 through June 15, 2021 Utility 90 - 180 days > 180 days Grand Total
Electric 109,869 603,815 713,684
Gas 48,127 291,020 339,147
Water 39,005 237,954 276,959
Sewer 32,035 212,510 244,545
Fiber 29,031 114,906 143,937
Refuse 40,478 230,064 270,542
Storm 6,086 36,046 42,133
304,632 1,726,316 2,030,948

Discussion
California Arrearage Payment Program (CAPP)

CAPP benefits will be credited to customer accounts on a rolling and priority basis upon CPAU’s approval for CAPP fundi ng. There are four distinct phases of CAPP implementation that are required for energy utilities participating in the program.

The four CAPP phases are as follows:

1. Survey – Utilities submit information to the state department of CSD regarding utility arrearage amounts by customer type.

2. Application – Utilities that submitted a survey are eligible to submit an application for funding request.

3. Benefit Delivery – Utilities that receive CAPP funds will be responsible for disbursing benefits to eligible customers within 60 days of receiving CAPP funding; funds must be fully disbursed by January 31, 2022.

4. Report – Utilities that receive CAPP funds will be responsible for submitting a report to the state department of CSD on funds applied, schedule of accounts, and remittance of unapplied funds within 6 months of receiving CAPP funding. 6 Packet Pg. 108

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Eligible Customers:

CPAU identified 873 residential accounts that have incurred past due balances of 60 days or more totaling $443,107 during the period of March 4, 2020 through June 15, 2021. CPAU identified 131 commercial accounts with past due balances of 60 days or more totaling $292,861 during the same period.

Funding:

CAPP funding has allocated $298,546,750 to publicly owned electric and gas utilities and electric coopera tives, and $694,953,250 to investor-owned utilities and community choice aggregators. Based on the guidance from the state department of CSD, CPAU’s allocation is anticipated to be $735,969.

If funding is insufficient to meet all electric customer debt, credits must be applied to eligible customers’ past due balances according to the following prioritization:

1. Active residential customers with past due balances who are at risk of disconnection due to nonpayment.

2. Active residential customers with past due balances.

3. Inactive residential customers with past due balances.

4. Commercial customers with past due balances.

Customer Protection:

As condition for applying for CAPP allocation from the state department of CSD, CPAU provided the following customer protections:
• CPAU did not discontinue service due to nonpayment for customers with arrearages accrued during the COVID -19 pandemic bill relief period while the state department of CSD reviews and approves all pending CAPP applications. • CPAU will waive a ny assoc iated late fees and accrued interest for customers that are awarded CAPP benefits.
• CPAU will not disconnect a CAPP recipient’s utility service, regardless of balance owed after applying a CAPP benefit, for 90 days after a CAPP benefit is applied. • CPAU will notify c ustomers that receive a CAPP benefit and have a remaining balance after that benefit is applied of the option to enter into an extended payment plan with late fees and penalties waived.

California Water and Wastewater Arrearage Payment Program (CWWAPP) The COVID-19 pandemic has made it difficult for many Californians to pay their bills due to job loss and other hardships. As a result, systems that provide water services to customers have been financially impacted. The State Water Board is adminis tering the CWWAPP to provide 6 Packet Pg. 109

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community water systems with financial relief for unpaid water bill debt from their residential and commercial customers.

CPAU applied for funding on behalf of residential and commercial water accounts that are 60 days or more behind on payments for debt accrued between March 4, 2020 and June 15, 2021.

CPAU will credit customers’ accounts using CWWAPP funds and notify them that their water bill debt has been reduced. The program ’s funds will apply to debt related to drinking water first.

Beginning in February 2022, the program ’s funds will apply to wastewater debt. Similar to CAPP, the customer water arrearage funding stage of CWWAPP has four phases.

Four CWWAPP Phases:

1. Water Survey – Utilities submit information to the State Water Board regarding water utility arrearage amounts by customer type.

2. Water Application – Utilities that submitted a survey are eligible to submit an application for funding request.

3. Water Benefit Delivery – Utilities that receive CAPP funds will be res ponsible for disbursing benefits to eligible customers within 60 days of receiving CWWAPP funding.

Unused funds must be returned to the State Water Board.

4. Water Report – Utilities that receive CWWAPP funds are responsible for submitting a report to the State Water Board on total funds applied, total number of accounts that received the benefit, total number of customers that entered a payment arrangement for remaining balances, total number of customers that did not enter a payment arrangement for remaining balances, and any costs BWP incurred while administrating CWWAPP.

Eligible Customers:

CPAU has identified 299 residential water accounts that have incurred past due balances of 60 days or more totaling $164,457 during the period March 4, 2020 through Jun e 15, 2021. In addition, there are 77 commercial water accounts with past due balances of 60 days or more totaling $110,400 during the relief period.

Funding:

There is $985,000,000 allocated to publicly owned utilities for water and wastewater arrears.

CPAU requested $301,335 in customer water arrearage funding. Based on the guidance from the State Water Board, CPAU’s eligible water debt of $274,857 will be funded. The State Water Board will establish an assistance program no later than February 1, 2022 t o address wastewater arrearages.

Recommendation: Staff recommends that City Council approve the resolutions allowing CPAU to accept both the CAPP and CWAPP funds and directly apply credits to utility customers accounts affected by the pandemic.

Timeline
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Staff completed the grant applications by December 6, 2021 . The City can anticipate receiving approved CAPP and CWWAPP funds by January 31, 2022. Within 60 days of receiving the funds, CPAU must distribute the funds to the eligible customer utility accoun ts. Any unused funds must be returned to the funding agencies.

Resource Impact
The City will receive $274,857 from CWWAPP and $735,969 from CAPP, a total of $1,010,826, to help reduce past utility bill balances during the COVID -19 pandemic relief period of March 4, 2020 through June 21, 2021. The breakdown of the total $1,010,826 by utility is as follows:
• $274,857 for Water,
• $486,876 for Electric, and
• $249,093 for Gas.

Funding will be recognized and appropriated in each utility respectively to offse t utility arrearage balance from FY 2020 and FY 2021 from customer accounts in arrears as a result of impacts from the COVID-19 pandemic. All funds, from the State of California, originated from Federal relief packages, and therefore will likely be treate d as federal funding and subject to the annual single audit.

The remaining balance greater than 90 days is approximately $1.0 million across the funds .

CPAU will notify customers that have remaining balances and offer an extended payment plan with late fees and penalties waived. Funding to offset CPAU customer revenue in arrears was not factored into the development of the FY2022 budget since the Utilities Department was not notified of these programs until end of CY 202 1. However, the Department did factor in delinquent and unpaid bills in developing the utility rate forecasts for FY 2022 . Although the budgetary impact of the actions in this report is net zero, the funds will be positive because of reducing outstanding aging debt balances.

Stakeholder Engagement
Utility customers will be notified of the credits from CAPP and CWWAPP by direct mail. CPAU will offer payment arrangement plans for customers with remaining utility arrearage balances if requested.

Environmental Review
Approval of this resoluti on does not meet the California Environmental Quality Act (CEQA) definition of a project under Section 21065 of the Public Resources Code of the State of California and CEQA Guidelines Section 15378(b)(4) , therefore, an environmental assessment is not required.

Attachments:
• Attachment6.a: Attachment A: Resolution California Arrearage Payment Program (CAPP)
• Attachment6.b: Attachment B: Resolution California Water and Wastewater Arrearage Payment Program (CWWAPP)
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Resolution No. ________
Resolution of the Council of the City of Palo Alto to Authorize Participation in the California Arrearage Payment Program for Electric and Gas Utilities

R E C I T A L S

A. The State Budget Act of 2021, as established by Assembly Bill No. 128 (Chapter 21, Statutes of 2021) and as amended by Senate Bill No. 129 (Chapter 69, Statutes of 2021), provided $993,500,000 to the State Department of Community Services and Development (“Department”) to administer the California Arrearage Payment Program (CAPP) to reduce delinquent electricity and natural gas utility balances for customers experiencing financial hardships related to the economic impacts of the COVID-19 pandemic.

B. Funding for CAPP is payable from the State’s share of the federal Coronavirus Fiscal Recovery Fund of 2021.

C. Assembly Bill No. 135 (Chapter 85, Statutes of 2021) formally established the CAPP within the Department, enumerating the program’s requirements for utility participation and setting aside $298,953,250 for financial assistance to customers of local publicly owned electric and gas utilities.

D. A local publicly owned electric utility is considered a utility applicant under CAPP and may apply to the department for CAPP funds for eligible customer accounts for past due bills during the COVID-19 pandemic bill relief period.

E. Eligible customers are all residential and commercial customers. Past due bills mean any customer utility bills that are 60 days or more past due and includes both active and inactive accounts, as well as customer accounts that have payment plans or payment arrangements. The COVID-19 pandemic bill relief period means the period starting March 4, 2020 and ending June 15, 2021.

F. City of Palo Alto Utilities (CPAU) is a local publicly owned electric and gas utility with eligible customer accounts with past due electric and gas bills during the COVID-19 pandemic bill relief period.

G. To receive CAPP funding on behalf of eligible customers, a utility applicant must complete both a utility survey and application including submitting all necessary data and information to support the utility applicant’s request for CAPP funding.

H. CPAU uploaded the completed Utility CAPP Survey to Department servers on September 9, 2021, supporting CPAU’s request for $1.13 million in customer electricity and natural gas arrearage funding. The Department requested additional documentation on December 16, 2021, which CPAU submitted on December 20, 2021.

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I. Because total utility funding requests from across the state exceeded the Department’s program budget, the Department is anticipated to grant 65% of CPAU’s requested funds. Upon the Department’s receipt of CPAU’s additional documents, the Department is anticipated to allocate to CPAU $735,969 of funding to apply to customer accounts, with $486,876 applying to electric accounts and $249,093 applying to gas accounts.

J. CPAU is required to disburse funds as expeditiously as possible to utility applicants, but no later than January 31, 2022.

K. Within 60 days of receiving CAPP funds, CPAU must issue CAPP Assistance benefits to customers as bill credits to help address the eligible past due balance and must include a statement that the credits are a result of California’s CAPP funding. Eligible CPAU customers need not apply for the program.

L. Where CAPP funding is not sufficient to meet all need, CAPP requires CPAU to prioritize the issuance of CAPP assistance in a particular order. Assistance must go first to active residential customers who are past due and who, absent the CAPP assistance, might be subject to service disconnection, consistent with current law, due to nonpayment of balances incurred during the COVID-19 pandemic bill relief period. Second, assistance must go to active residential customers with delinquent balances incurred during the COVID-19 pandemic bill relief period. Assistance must then go to inactive residential accounts with delinquent balances incurred during the COVID-19 pandemic bill relief period. Last, assistance must go to commercial customers with delinquent balances incurred during the COVID-19 pandemic bill relief period.

M. Assembly Bill No. 135 created customer protections to require a utility applicant to notify customers of the option to enter into an extended payment plan with late fees and penalties waived for any remaining balanced after CAPP funds are credited to the customer’s account, to refrain from discontinuing service while CAPP applications are pending, for 90 days after the CAPP benefit is applied to a customer account, and while a customer remains current on a repayment plan, and to waive associated late fees and accrued interest for customers awarded CAPP benefits.

NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:

SECTION 1
. The Council hereby approves CPAU’s participation in CAPP and authorizes the Director of Utilities or his designee to execute program participation on behalf of the City of Palo Alto.
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SECTION 2. The Council finds that the adoption of this resolution does not meet the definition of a project under Public Resources Code Section 21065, thus, no environmental assessment under the California Environmental Quality Act is required.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

__________________________ _____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

__________________________ _____________________________ Senior Assistant City Attorney City Manager

_____________________________
Director of Utilities

_____________________________
Director of Administrative Services

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Resolution No. ________
Resolution of the Council of the City of Palo Alto to Authorize Participation in the California Water and Wastewater Arrearage Payment Program

R E C I T A L S

A. The State Budget Act of 2021, as established by Assembly Bill No. 128 (Chapter 21, Statutes of 2021) and as amended by Senate Bill No. 129 (Chapter 69, Statutes of 2021), provided nearly $1 billion to the State Water Resources Control Board (“Board”) to administer the California Water and Wastewater Arrearage Payment Program (CWWAPP) to reduce delinquent water and wastewater balances for customers experiencing financial hardships related to the economic impacts of the COVID-19 pandemic.

B. Funding for CWWAPP is payable from the State’s share of the federal Coronavirus Fiscal Recovery Fund of 2021.

C. Assembly Bill 148 (Chapter 115, Statutes of 2021) formally established the CWWAPP within the Board, enumerating the program’s requirements for community water system participation. Participating community water systems must have accrued residential and commercial customer arrearages.

D. A community water system is a public water system that serves at least 15 service connections used by yearlong residents or regularly serves at least 25 yearlong residents of the area served by the system.

E. Eligible customers are all residential and commercial customers. Past due bills mean any customer utility bills that are 60 days or more past due and includes both active and inactive accounts, as well as customer accounts that have payment plans or payment arrangements. The COVID-19 pandemic bill relief period means the period starting March 4, 2020 and ending June 15, 2021.

F. City of Palo Alto Utilities (CPAU) is a community water system that accrued residential and commercial arrearages during the COVID-19 pandemic relief period. CPAU has customers who have past due water bills during the COVID-19 pandemic.

G. To receive CWWAPP funding on behalf of eligible customers, a community water system must complete both a survey and application including submitting all necessary data and information to support the water system’s request for CWWAPP funding.

H. CPAU uploaded the completed Utility CWWAPP Survey to the Board’s servers on September 10, 2021, requesting $301,335 in customer water arrearage funding. The Board allocated CPAU $274,857 of program funding to apply to customer accounts.

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I. Within 60 days of receiving funds, CPAU must allocate payments as bill credits to customers to help address past-due bills incurred during the COVID-19 pandemic bill relief period and notify customers of the amounts credited to their accounts.

J. If there are insufficient CWWAPP funds to fulfill all applicants’ requests, the Board must allocate funds on a proportional basis to each community water system applicant based on reported arrearages and shortfalls.

K. If there are sufficient funds to reimburse the total amount of reported arrearages and revenue shortfalls of community water systems, the Board shall establish a program for funding wastewater treatment provider arrearages and shortfalls in accordance with the remaining funds.

L. The Board must begin disbursing funds no later than November 1, 2021 and complete distribution of funds by January 31, 2022; the wastewater service program must start following substantial completion of the water service program and in no instance later than February 1, 2022.

M. A community water system receiving assistance under CWWAPP may expend up to 3 percent, or up to one million dollars ($1,000,000), whichever amount is less, of that assistance for costs incurred in applying for the assistance or complying with use and reporting conditions of the assistance.

N. Assembly Bill 148 created customer protections that require CPAU to offer a payment plan to affected customers and refrain from discontinuing service until (1) September 30, 2021 or (2) for a customer that has been offered an opportunity to participate in a payment plan, the date the customer misses the enrollment deadline for, or defaults on, the payment plan, whichever is later.

NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:

SECTION 1
. The Council hereby approves CPAU’s participation in CWWAPP and authorizes the Director of Utilities or his designee to execute program participation on behalf of the City of Palo Alto.
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SECTION 2. The Council finds that the adoption of this resolution does not meet the definition of a project under Public Resources Code Section 21065, thus, no environmental assessment under the California Environmental Quality Act is required.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

__________________________ _____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

__________________________ _____________________________ Assistant City Attorney City Manager

_____________________________
Director of Utilities

_____________________________
Director of Administrative Services

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City of Palo Alto (ID # 13900)
City Council Staff Report

Meeting Date: 1/10/2022

City of Palo Alto Page 1

Title: Adoption of an Interim Ordinance Amending Titles 16, 18 and 21 in Response to Senate Bills 9 and 478, Including Amendment to the City's Affordable Housing Requirements for SB 9 Projects. CEQA Status: This Action is not Considered a Project or is Exe mpt from CEQA in Accordance With Government Code Sections 66411.7(n) and 65852.21(j) or Section 15061 of the State CEQA Guidelines.

From: City Manager
Lead Department: Planning and Development Services

Recommendation
Staff recommend the City Council:

1. Adopt the attached interim ordinance (Attachment A) integrating Senate Bill 9 and further implementing Senate Bill 478 into the Palo Alto Municipal Code.

Background
On December 6, 2021, 1 the City Council held a public hearing and adopted an urgency ordinance amending Palo Alto Municipal Code Titles 18 and 21 in response to SB 9 and SB 478 .

These two bills were adopted by the State legislature and signed into law by the Governor last year; the laws became effective on January 1. Included in the Council’s action was the adoption of a set of objective standards that apply to qualifying SB 9 projects.

Distinct from the above action, t he City Council also considered an interim ordinance that proposed the similar regulations as the urgency ordinance but it was not adopted that evening.

Before adopting this ordinance, the City Council requested the interim ordinance include a requirement that qualifying SB 9 projects be subject to the City’s inclusionary housing requirements. Specifically, the City Council’s motion directed staff to return at the earliest possible time in January 2022 to adopt the subject interim ordinance and:

1 City Council Staff Report, dated December 6, 2021: https://www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/agendas-minutes/city-council-agendas-minutes/2021/12-december/20211206/20211206pccsm- amended-linked.pdf#page=198
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Include language to Senate Bill 9 impacted developments reflecting a 15% affordable housing in-lieu fee to “for sale” units and existing residential impacts fees for rental units, and request that staff return with additional analysis of the impacts of these fees.

The attached interim ordinance reflects this direction in Section 23. It also includes additional language recommended by staff for urban lot splits during the December 6, 2021 staff presentation. In all other respects related to SB 9, the attached ordinance is the same as the interim ordinance the City Council previously reviewed.2

Based on this new provision, qualifying SB 9 projects that result in a net new ownership housing unit(s) that could be individually sold would be subject to the City’s inclusionary housing requirement and the developer would likely make an in-lieu payment based on a fee set forth in the City’s municipa l fee schedule and in accordance with a formula set forth in the City’s municipal code. Net new rental housing units, including accessory dwelling units that could not have been constructed prior to SB 9 would be subject to residential impact fees to the e xtent permitted by state law .3 In some instances a project may be subject to both fees. Fees would not apply to projects that could have been constructed prior to SB 9’s adoption, such as a single family home and ADU on an existing lot.

Regarding the Coun cil’s direction for additional analysis of the impacts of these fees, staff is unable to provide any substantive work on this effort given the short turn around on this ordinance. Staff anticipates returning in spring with additional SB 9 provisions relate d to urban lot splits and will fold in the impact fee analysis with that report.

Staff is transmitting this ordinance to the City Council on the Consent Calendar since the ordinance was previously reviewed at a noticed public hearing (December 6, 2021) and includes only a minor amendment that responds to Council direction.

Stakeholder Outreach
Due to the limited time from law adoption to implementation, robust public engagement has not occurred on these items. Staff propose that, during 2022, the PTC and ARB engage in robust public engagement efforts by hosting study sessions, workshops, and hearings while considering permanent ordinances for SB 9, SB 478, and strengthening local no -net loss provisions.

Environmental Review
The City Council finds that th is Ordinance is statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) for the following reasons. Under Government Code

2 The attached ordinance also includes state mandated-implementation language related to SB 478, which was previously documented and included with Council’s initial review. 3 State law exempts ADUs less than 750 square feet from being assessed fees and requires fees on larger ADUs to be proportional to fees assessed on primary units.
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Sections 66411.7(n) and 65852.21(j), an ordinance adopted to implement the requirements of SB 9 sha ll not be considered a project under CEQA. Additional sections of this ordinance implementing SB 478 are exempt pursuant to Section 15061 of the State CEQA Guidelines because they simply reflect pre -emptive state law that will be effective January 1, 2022. As such, this ordinance does not reflect a change from the status quo and it therefore can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment.

Attachments:
• Attachment7.a: Attachment A: Interim Ordinance to Implement SB 9 (INC AF HSG) 7 Packet Pg. 120
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Ordinance No. ______

Interim Ordinance of the Council of the City of Palo Alto Modifying Chapters

16.65 (Citywide Affordable Housing Requirements), 18.10 (Low-Density Residential, RE, R-2, and RMD Districts), 18.12 (R-1 Single-Family Residential District), 18.13 (Multiple Family Residential, RM20, RM30, RM40), 18.16 (Commercial Districts, CN, CC, CS), 18.18 (Downtown Commercial, CD-C, CD-S, CD-N), 18.40 (General Standards and Exceptions), and 18.42 (Standard for Special Uses) of Title 18 (Zoning) and Adding Chapter 21.10 (Parcel Maps for Urban Lot Splits) of the Palo Alto Municipal Code to Implement Recent State Housing Bills

The Council of the City of Palo Alto ORDAINS as follows:

SECTION 1. Findings and declarations. The City Council finds and declares as follows:

A. On September 16, 2021, Governor Newsom signed into law Senate Bill 9 (SB 9), which requires, among other things, that local agencies ministerially approve both two-unit construction and urban lot splits on single-family zoned lots.

B. SB 9 authorizes the creation of lots as small as 1,200 square feet, and requires approval of two residential units of at least 800 square feet (for a total of 1,600 square feet) each on such lots. This represents a significant departure from existing minimum lot sizes and development standards in Palo Alto’s single-family zones.

C. The increased density and intensity of development authorized by SB 9 has the potential to negatively impact privacy, access for emergency vehicles, and aesthetics of residential neighborhoods. In addition, the ministerial review required by SB 9 could result in the unintentional loss of historic resources in Palo Alto’s single family zones.

D. SB 9 authorizes local jurisdictions to apply objective zoning standards, objective subdivision standards, and objective design standards, subject to certain limitations in statute.

E. On September 16, 2021, Governor Newsom signed into law Senate Bill 478 (SB 478), which requires, among other things, that local agencies provide specified minimum floor area ratios for housing development projects containing 3 to 10 dwelling units.

F. There is insufficient time for consideration of and recommendation on objective standards related to SB 9, code amendments related to SB 478, and associated code amendments to Title 18 by the Planning and Transportation Commission (PTC) prior to action by the City Council. The Council therefore declares that an interim ordinance, pursuant to Palo Alto Municipal Code (PAMC) Section 18.80.090 is an appropriate

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measure to adopt standards, pending consideration of a permanent ordinance by the PTC.

SECTION 2. Section 18.10.020 (Applicable Regulations) of Chapter 18.10 (Low-Density Residential (RE, R-2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through):

18.10.020 Applicable Regulations
The specific regulations of this chapter and the additional regulations and procedures established by Chapters 18.52 to 18.80 inclusive shall apply to all low-density residential districts. Such regulations shall apply to construction of two units on an RE-zoned lot pursuant to California Government Code Section 65852.21 (SB 9, 2021), except as modified by Section

18.42.180.

SECTION 3. Section 18.10.030 (Land Uses) of Chapter 18.10 (Low-Density Residential (RE, R-2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

18.10.030 Land Uses

Table 1 shows the permitted and conditionally permitted uses for the low-density residential districts.

TABLE 1

PERMITTED AND CONDITIONALLY PERMITTED LOW-DENSITY RESIDENTIAL USES [P = Permitted Use -- CUP = Conditional Use Permit Required]

RE R-2 RMD Subject to
Regulations in:
[. . .] [. . .] [. . .] [. . .] [. . .]

RESIDENTIAL USES
Single-Family P P P

Two-Family use, under one ownership P (4) P P

Mobile Homes P P P 18.42.100
Residential Care Homes P P P

[. . .] [. . .] [. . .] [. . .] [. . .]
P = Permitted Use CUP = Conditional Use Permit
Required

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Footnotes:
(1) Sale of Agricultural Products: No permanent commercial structures for the sale or processing of agricultural products are permitted.
(2) Accessory Dwelling Units in R-2 and RMD Zones: An accessory dwelling unit or a Junior Accessory Dwelling Unit associated with a single-family residence on a lot in the R-2 or RMD zones is permitted, subject to the provisions of Section 18.42.040, and such that no more than two units result on the lot.
(3) Bed and Breakfast Inns: Bed and breakfast inns are limited to no more than 4 units (including the owner/resident's unit) in the RMD district. (4) Two Unit Development Pursuant to California Government Code Section 65852.21 (SB 9, 2021): Construction of two units is permitted on an RE-zoned lot, subject to the regulations in Section 18.42.180.

SECTION 4. Section 18.10.040 (Development Standards) of Chapter 18.10 (Low-Density Residential (RE, R-2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

18.10.040 Development Standards
(a) Site Specifications, Building Size, Height and Bulk, and Residential Density The development standards for the low-density residential districts are shown in Table 2:

TABLE 2

LOW-DENSITY RESIDENTIAL DEVELOPMENT STANDARDS
R-E (6) R-2 RMD Subject to
Regulations in:
[. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
(1) Minimum Lot Size: Any lot less than the minimum lot size may be used in accordance with the provisions of Chapter 18.40.
(2) R-2 Floodzone Heights: Provided, in a special flood hazard area as defined in Chapter

16.52, the maximum heights are increased by one-half of the increase in elevation required to reach base flood elevation, up to a maximum building height of 33 feet. (3) R-2 Floodzone Daylight Plane: Provided, if the site is in a special flood hazard area and is entitled to an increase in the maximum height, the heights for the daylight planes shall be adjusted by the same amount.
(4) Exemption from Floor Area for Covered Parking Required for Two-Family Uses: In the R-2 and RMD districts, for two-family uses, floor area limits may be exceeded by a maximum of two hundred square feet, for purposes of providing one required covered parking space. (5) Maximum House Size: The gross floor area of attached garages and attached accessory dwelling units and junior accessory dwelling units are included in the calculation of maximum

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house size. If there is no garage attached to the house, then the square footage of one detached covered parking space shall be included in the calculation. This provision applies only to single-family residences, not to duplexes allowed in the R-2 and RMD districts. (6) Two Unit Development Pursuant to California Government Code Section 65852.21 (SB 9, 2021): Construction of two units on an RE-zoned lot shall be subject to the development standards in this Section 18.10.040, except as modified by Section 18.42.180.

[. . .]

SECTION 5. Table 3 (PARKING REQUIREMENTS FOR R-E, R-2 AND RMD USES) of Section

18.10.060 (Parking) of Chapter 18.10 (Low-Density Residential (RE, R-2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

[. . .]

TABLE 3
PARKING REQUIREMENTS FOR R-E, R-2 AND RMD USES
Use Minimum Off-Street Parking Requirement
Single-family residential use (excluding
accessory dwelling units)
2 spaces per unit, of which one must be covered.

Two family in the RE district, pursuant to
California Government Code Section
65852.21 (SB 9, 2021)
1 space per unit. No spaces required if located
within one-half mile walking distance of either a
high-quality transit corridor or a major transit stop,
or located within one block of a car share vehicle.

Two family (R2 & RMD districts) 3 spaces total, of which at least two must be covered
Accessory dwelling unit, attached or
detached:

No parking required
Junior accessory dwelling unit No parking required
Other Uses See Chapter 18.40

[. . .]

SECTION 6. Section 18.10.070 (Accessory and Junior Accessory Dwelling Units) of Chapter

18.10 (Low-Density Residential (RE, R-2 and RMD) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck- through):

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18.10.070 Accessory and Junior Accessory Dwelling Units Accessory Dwelling Units and Junior Accessory Dwelling Units are subject to the regulations set forth in Chapter 18.09 Section 18.42.040.

SECTION 7. Section 18.12.020 (Applicable Regulations) of Chapter 18.12 (R-1 Single Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through):

18.12.020 Applicable Regulations
The specific regulations of this chapter and the additional regulations and procedures established by Chapters 18.52 to 18.80 inclusive shall apply to the R-1 district including the R-1 subdistricts. Such regulations shall apply to construction of two units on an R1-zoned lot pursuant to California Government Code Section 65852.21 (SB 9), except as modified by Section

18.42.180.

SECTION 8. Section 18.12.030 (Land Uses) of Chapter 18.12 (R-1 Single Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

18.12.030 Land Uses
The permitted and conditionally permitted uses for the single family residential districts are shown in Table 1:

Table 1
PERMITTED AND CONDITIONAL R-1 RESIDENTIAL USES
R-1 and all R-1
Subdistricts
Subject to
Regulations in:
[. . .] [. . .] [. . .]

RESIDENTIAL USES
Single-Family P

Two-Family use, under one ownership P 18.42.180
Mobile Homes P 18.42.100
Residential Care Homes P

[. . .] [. . .] [. . .]
P = Permitted Use CUP = Conditional Use Permit Required

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SECTION 9. Section 18.12.040 (Site Development Standards) of Chapter 18.12 (R-1 Single Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

18.12.040 Site Development Standards

(a) Site Specifications, Building Size, Height and Bulk, and Residential Density The development standards for the R-1 district and the R-1 subdistricts are shown in Table 2, except to the extend such standards may be modified by Section 18.42.180 for two-family uses pursuant to California Government Code Section 65852.21 (SB 9, 2021):

[. . .]

SECTION 10. Section 18.12.060 (Parking) of Chapter 18.12 (R-1 Single Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

18.12.060 Parking
Off-street parking and loading facilities shall be required for all permitted and conditional uses in accord with Chapters 18.52 and 18.54 of this title. The following parking requirements apply in the R- 1 districts. These requirements are included for reference purposes only, and in the event of a conflict between this Section 18.12.060 and any requirement of Chapters 18.52 and 18.54, Chapters 18.52 and 18.54 shall apply, except in the case of parcels created pursuant to Section 18.10.140(c) (subdivision incentive for historic preservation).

(a) Parking Requirements for Specific Uses

Table 4 shows the minimum off-street automobile parking requirements for specific uses within the R-1 district.

Table 4
Parking Requirements for Specific R-1 Uses
Use Minimum Off-Street Parking Requirement
Single-family residential use
(excluding accessory dwelling units)
2 spaces per unit, of which one must be covered.

Two family use pursuant to
California Government Code Section
65852.21 (SB 9, 2021)
1 space per unit. No spaces required if located
within one-half mile walking distance of either a
high-quality transit corridor or a major transit stop,
or located within one block of a car share vehicle.

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Accessory dwelling unit, attached or
detached
No parking required
Junior accessory dwelling unit No parking required
Other Uses See Chs. 18.52 and 18.54

[. . .]

SECTION 11. Section 18.12.070 (Accessory and Junior Accessory Dwelling Units) of Chapter

18.12 (R-1 Single Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through):

18.12.070 Accessory and Junior Accessory Dwelling Units Accessory Dwelling Units and Junior Accessory Dwelling Units are subject to the regulations set forth in Chapter 18.09 Section 18.42.040.

SECTION 12. Section 18.40.160 (Replacement Project or Discretionary Review Required) of Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck- through):

18.40.160 Replacement Project or Discretionary Review Required (a) No permit required under Title 2 (Administrative Code), Title 12 (Public Works and Utilities), or Title 16 (Building Regulations) shall be issued for demolition or deconstruction of a single family residence or duplex in the Low-Density Residential District (Chapter 18.10) or Single Family Residential District (Chapter 18.12), except for deconstruction pursuant to Section 16.14.130 or where necessary for health and safety purposes (as determined by the City's Building Official), unless building permit plans for a replacement project have been approved. This subsection shall also apply to demolition of a single family residence or duplex in the Multiple Family Residential District (Chapter 18.13) when the replacement project does not require discretionary review.
(b) No permit required under Title 2 (Administrative Code), Title 12 (Public Works and Utilities), or Title 16 (Building Regulations) shall be issued for any project requiring discretionary review under Title 18 or Title 21, unless the application for discretionary review has been approved.

SECTION 13. Section 18. 52.020 ( Definitions) of Chapter 18. 52 (Parking and Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

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18.52.020 Definitions
For purposes of this chapter:

[. . .]

(h) “Within one block of a car share vehicle” means within 600 feet of a parking space permanently reserved for use by a car share vehicle.
(h)(i) Definitions for other parking-related terms can be found in Section 18.04.030(a) (Definitions), including “Parking as a principal use,” “Parking facility,” and “Parking space.”

SECTION 14. Table 1 (Minimum Off-Street Parking Requirements of Section 18.52.040 (Off- Street Parking, Loading, and Bicycle Facility Requirements) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

18.52.040 Off-Street Parking, Loading and Bicycle Facility Requirements

[. . .]

Table 1
Minimum Off-Street Parking Requirements
Use Vehicle Parking Requirement
(# of spaces)
Bicycle Parking Requirement

Spaces Class 1 Long
Term (LT) and
Short Term (ST)

RESIDENTIAL USES
[. . .] [. . .] [. . .] [. . .]
Two-Family
Residential
(R-2 & RMD Districts)

1.5 spaces per unit, of which at least
one space per unit must be covered
Tandem Parking Allowed, with one
tandem space per unit, associated
directly with another parking space
for the same unit
1 space per
unit
100% - LT
(R-1 and RE Districts,
pursuant to Section

18.42.180)
At least one space per unit. No
spaces required if the unit is located
within one-half mile walking
distance of either a high-quality
transit corridor or a major transit
1 space per
unit
100% - LT

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stop, as defined in California Public
Resources Code Sections 21155 and
21064.3 respectively, or located
within one block of a car share
vehicle.
[. . .] [. . .] [. . .] [. . .]

[. . .]

SECTION 15. Section 18.42.180 (Interim Standards for Two Units on Single Family Zoned Lots Pursuant to Senate Bill 9) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code is added to read as follows:

18.42.180 Interim Standards for Two Units on Single Family Zoned Lots Pursuant to Senate Bill 9.

(a) Purpose. This section sets forth special regulations applicable to the construction of two dwelling units on single family lots in the R-1 (and R-1 subdistricts) and R-E zone districts, pursuant to California Government Code Sections 65852.21 and 66411.7 (SB 9, 2021). In the event of a conflict between the provisions of this section and the generally applicable regulations of Chapters 18.10, 18.12, and 18.52-18.80, inclusive, the provisions of this section shall prevail.

(b) Definitions. As used in this section:
(1) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety or physical environmental standards, policies, or conditions as they existed on the date the application was deemed complete. Inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse, impact.
(2) “Sufficient to allow separate conveyance” means the two dwelling units constitute clearly defined, separate, and independent housekeeping units without interior access points to the other dwelling unit. (3) “Two dwelling units” means the development proposes two new units on a vacant lot or proposes to add one new unit to one existing unit on a lot. This does not include the development of a single dwelling unit on a vacant lot. (4) “Unit” means any dwelling unit, including, but not limited to a primary dwelling unit, an accessory dwelling unit, or a junior accessory dwelling unit.

(c) Applicability. When an application is submitted that includes both (1) the construction of two dwelling units under this section and (2) other redevelopment work that is not integral to creation of a new dwelling unit and would generally require discretionary review, only the

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portions required for construction of dwelling units shall be reviewed ministerially. In addition, this section shall not apply in any of the following circumstances:
(1) Parcels described California Government Code Section 65913.4, subdivisions (a)(6)(B) through (a)(6)(K) inclusive. Such parcels include, for example, parcels located in wetlands, in very high fire severity zones (unless the site has adopted certain fire hazard mitigation measures), and in special flood hazard areas or regulatory floodways (unless the site meets certain federal requirements for development).
(2) Parcels on which an owner of residential real property has exercised the owner’s rights under state law to withdraw accommodations from rent or lease within the past 15 years.
(3) The development would require alteration or demolition of any of the following types of housing
(A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.
(B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(C) Housing that has been occupied by a tenant in the last three years. (4) The development would result in the demolition of more than 25 percent of the existing exterior structural walls of a site that has been occupied by a tenant in the last three years.
(5) The development is located within a historic district or property included on the State Historic Resources Inventory, as defined in California Public Resources Code Section 5020.1, or within a site that is designated or listed on the City’s historic inventory.
(6) The building official finds that the development would have a specific, adverse impact on public health and safety or the physical environment that cannot be feasibly mitigated or avoided.

(d) Application Process.
(1) The Director is authorized to promulgate regulations, forms, and/or checklists setting forth application requirements for the development of dwelling units under this section.
(2) The City shall ministerially approve or disapprove an application pursuant to this section.

(e) Development Standards.
(1) A project proposing two dwelling units on a parcel in the R-1 or RE districts shall be subject to the development standards set forth in Chapters 18.12 and 18.10, respectively except as provided herein.
(2) All construction pursuant to this section shall comply with objective design standards adopted by the City Council. However, an applicant seeking to deviate from the objective design standards (except to the extent necessary to construct

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a unit of 800 square feet) may elect to submit an application under the base requirements of Chapters 18.10, or 18.12, including, if applicable, Single Family Individual Review.
(3) If the application of any development standard or design standard would necessarily require that one or more proposed units be less than 800 square feet, such standard shall be relaxed to the minimum extent necessary to allow construction of a unit or units of at least 800 square feet. The Director may publish regulations governing the order in which objective standards shall be waived or relaxed in such circumstances.
(4) Setbacks from side and rear property lines, including street-side property lines, shall be no less than four feet, except in the case of existing non-complying structures or structures reconstructed in the same location and to the same dimensions as an existing structure, in which case existing setbacks less than four feet may be maintained.
(5) Off-street parking shall be provided pursuant to Chapters 18.52 and 18.54. (6) In the event that a project is proposed on a site that has been subject to an Urban Lot Split under Chapter 21.10, and the project would result in three or more detached units across the two parcels created by the urban lot split, any new units shall not exceed 800 square feet.
(7) Accessory structures, such as garages and shed are permitted consistent with the provisions of the zoning district; however, no accessory structure shall have a floor area exceeding 500 square feet.

(f) General Requirements.
(1) A maximum of two units may be located on any parcel that is created by an Urban Lot Split under Chapter 21.10. Accessory dwelling units and junior accessory dwelling units shall not be permitted on any such parcel already containing two units.
(2) On parcels that are not the result of an Urban Lot Split under Chapter 21.10, accessory dwelling units may be proposed in addition to the primary dwelling unit or units, consistent with Chapter 18.09, provided, however, that ADUs associated with projects proceeding under this Section shall not receive any exemption from Floor Area Ratio except to the minimum extent required by California Government Code Section 65852.2.
(3) A rental of any unit created pursuant to this Section shall be for a term longer than 30 consecutive days.
(4) For residential units connected to an onsite wastewater treatment system, a percolation test completed within the last 5 years, or, if the percolation test has been recertified, within the last 10 years.
(5) Each unit shall have a permanent street address.
(6) The owner and all successors in interest in the subject property shall agree to participate in any City survey of properties that have constructed dwelling units pursuant to this Section.

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(g) Effective Dates. This section shall remain in effect until such time as Government Code Section 65852.21 is repealed or superseded or its requirements for ministerial approval of no more than two units on a single family zoned lot are materially amended, whether by legislation or initiative, at which time this section shall become null and void.

SECTION 16. Chapter 21.10 (Urban Lot Splits) of Title 21 (Subdivisions and Other Divisions of land) of the Palo Alto Municipal Code is added to read as follows:

Chapter 21.10

PARCEL MAPS FOR URBAN LOT SPLITS IN SINGLE-FAMILY ZONES

Section 21.10.010 Purpose
Section 21.10.020 Definitions
Section 21.10.030 Applicability
Section 21.10.040 General Requirements
Section 21.10.050 Application and Review of an Urban Lot Split Section 21.10.060 Effective dates

Section 21.10.010 Purpose
This chapter sets forth special regulations applicable to the subdivision of a single family lot in the R-1 district (and R-1 subdistricts) or R-E district into two new lots, pursuant to California Government Code Section 66411.7 (SB 9, 2021).

Section 21.10.020 Definitions
As used in this chapter:
(a) “Acting in concert” means pursuing a shared goal to split adjacent lots pursuant to an agreement or understanding, whether formal or informal. (b) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety or physical environmental standards, policies, or conditions as they existed on the date the application was deemed complete. Inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse, impact. (c) “Unit” means any dwelling unit, including, but not limited to, a unit or units created pursuant to Section 18.42.180, a primary dwelling unit, an accessory dwelling unit, or a junior accessory dwelling unit.
(d) “Urban Lot Split” means the subdivision of an existing legal parcel in the R-1 district (and R-1 subdistricts) or R-E district to create no more than two new parcels of approximately equal area, pursuant to this Chapter and California Government Code Section 66411.7.

Section 21.10.030 Applicability
The provisions of this chapter shall apply only to lots in the R-1 district (and R-1 subdistricts) or R-E zone district. An Urban Lot Split is not available in any of the following circumstances:

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(a) A parcel described California Government Code Section 65913.4, subdivisions (a)(6)(B) through (a)(6)(K) inclusive. Such parcels include, for example, parcels located in wetlands, in very high fire severity zones (unless the site has adopted certain fire hazard mitigation measures), and in special flood hazard areas or regulatory floodways (unless the site meets certain federal requirements for development). (b) A parcel on which an owner of residential real property has exercised the owner’s rights under state law to withdraw accommodations from rent or lease within the past 15 years.
(c) A parcel that was created by prior exercise of an Urban Lot Split. (d) A parcel adjacent to a parcel that was created by prior exercise of an Urban Lot Split by the owner, or a person acting in concert with the owner of the parcel sought to be split. (e) The Urban Lot Split would require alteration or demolition of any of the following types of housing
(1) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.
(2) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(3) Housing that has been occupied by a tenant in the last three years. (f) The Urban Lot Split is located within a historic district or property included on the State Historic Resources Inventory, as defined in California Public Resources Code Section 5020.1, or within a site that is designated or listed on the City’s historic inventory. (g) The building official finds that the development would have a specific, adverse impact on public health and safety or the physical environment that cannot be feasibly mitigated or avoided.

Section 21.10.040 General Requirements
(a) The minimum size for a parcel created by an Urban Lot Split is 1,200 square feet. (b) The lots created by an Urban Lot Split must be of approximately equal area, such that no resulting parcel shall be smaller than 40 percent of the lot area of the original parcel proposed for subdivision.
(c) Each parcel created by an Urban Lot Split shall adjoin the public right of way by means of a minimum fifteen foot street frontage.
(d) Where existing dwelling units on the property are to remain, no lot line may be created under this Chapter in a manner that would bisect any structure or that would result in more than two dwelling units on any resulting parcel.
(e) Newly created lot lines shall not render an existing structure noncomplying in any respect (e.g. floor area ratio, lot coverage, parking), nor increase the degree of noncompliance of an existing noncompliant structure.
(f) Each parcel shall comply with any objective lot design standards for Urban Lot Splits adopted by the City Council.
(g) The Director of Planning shall determine the appropriate fee required for an application for parcel map for an Urban Lot Split, which may be the fee currently established for a Preliminary Parcel Map or Parcel Map.

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Section 21.10.050 Application and Review of an Urban Lot Split (a) The director of planning is authorized to promulgate regulations, forms, and/or checklists setting forth application requirements for a parcel map for an Urban Lot Split under this Chapter. An application shall include an affidavit from the property owner, signed under penalty of perjury under the laws of California, that:
(1) The proposed urban lot split would not require or authorize demolition or alteration of any of the housing described in Section 21.10.030, subdivision (e). (2) The proposed urban lot split is not on a parcel described in Section 21.10.030. (3) The owner intends to occupy one of the housing units located on a lot created by the parcel map as their principal residence for a minimum of three years from the date of the recording of the parcel map.
(4) The rental of any unit on the property shall be for a term longer than 30 consecutive days.
(5) The resulting lots will be for residential uses only. (b) A parcel map for an Urban Lot Split must be prepared by a registered civil engineer or licensed land surveyor in accordance with Government Code sections 66444 – 66450 and this Chapter. Unless more specific regulations are adopted by the director of planning, the parcel map shall be in the form and include all of the information required of a Preliminary Parcel Map by Chapter 21.12, as well as any additional information required of a Parcel Map by Chapter 21.16. In addition, the face of the Parcel Map shall contain a declaration that:
(1) Each lot created by the parcel map shall be used solely for residential dwellings. (2) That no more than two dwelling units may be permitted on each lot. (3) That rental of any dwelling unit on a lot created by the parcel map shall be for a term longer than 30 consecutive days.
(4) A lot created by a parcel map under this Chapter shall not be further subdivided. (c) Upon receipt of a parcel map for an Urban Lot Split, the director of planning shall transmit copies to the city engineer, chief building official, director of utilities, chief of police, fire chief, director of transportation, and such other departments of the city, and any other agencies, as may be required by law or deemed appropriate.

(d) The director of planning shall cause a notice of the pending application to be posted at the site of the proposed Urban Lot Split and for notice to be mailed to owners and residents of property within 600 feet of the property.
(e) The director of planning shall ministerially review and approve a parcel map for Urban Lot Split if they determine that the parcel map application meets all requirements of this Chapter. The director of planning shall deny a parcel map application that does not meet any requirement of this Chapter.

Section 21.10.060 Effective Dates.

This chapter shall remain in effect until such time as Government Code Section 66411.7 is repealed or superseded or its requirements for ministerial approval of an Urban Lot Split on a

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single family zoned lot are materially amended, whether by legislation or initiative, at which time this chapter shall become null and void.

SECTION 17. Section 18.13.040 (Development Standards) of Chapter 18.13 (Multiple Family Residential (RM-20, RM-30 and RM-40) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

18.13.040 Development Standards
(a) Site Specifications, Building Size and Bulk, and Residential Density

[. . .]

Table 2
Multiple Family Residential Development Table

RM-20 RM-30 RM-40 Subject to
regulations in:
[. . .] [. . .] [. . .] [. . .] [. . .]
Maximum Floor
Area Ratio
(FAR)(4)

0.5:1 0.6:1 1.0:1 18.13.045
[. . .] [. . .] [. . .] [. . .] [. . .]

SECTION 18. Section 18.13.045 (Increased Floor Area for Housing Developments of 3-10 Units) of Chapter 18.13 (Multiple Family Residential (RM-20, RM-30 and RM-40) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is added to read as follows:

18.13.045 Increased Floor Area for Housing Developments of 3-10 Units

(a) A housing development project, as defined in California Government Code Section 65589.5, that is in an RM-20, RM-30 or RM-40 District shall be allowed to increase its floor area ratio as follows:
(i) A housing development project of three to seven units shall have a maximum floor area ratio of 1.0:1.
(ii) A housing development project of eight to ten units shall have a maximum floor area ratio of 1.25:1.
(b) This section shall not apply within a historic district or property included on the State Historic Resources Inventory, as defined in California Public Resources Code Section 5020.1, or within a site that is designated or listed on the City’s historic inventory.

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SECTION 19. Section 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS)) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck- through; omissions are noted with [. . .] for large sections of unchanged text):

(a) Exclusively Non-Residential Uses

[. . .]

(b) Mixed Use and Residential
Table 4 specifies the development standards for new residential mixed use developments and residential developments. These developments shall be designed and constructed in compliance with the following requirements and the context-based design criteria outlined in Section 18.16.090, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section 18.76.020.

Table 4
Mixed Use and Residential Development Standards
CN CC CC(2) CS Subject to
regulations in
Section
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
Maximum
Residential
Floor Area
Ratio (FAR)

0.5:1 (4) See sub-
section (e)
below

0.6:1 0.6:1 18.16.065
Maximum
Nonresidential
Floor Area
Ratio (FAR)

0.4:1 2.0:1 0.4:1
Total Mixed
Use Floor Area
Ratio (FAR)

0.9:1 (4) 2.0:1 1.0:1 18.16.065
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]

[. . .]

SECTION 20. Section 18.16.065 (Increased Floor Area for Housing Developments of 3-10 Units) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS)) of Title 18 (Zoning) of the Palo Alto Municipal Code is added to read as follows:

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18.16.065 Increased Floor Area for Housing Developments of 3-10 Units

(a) A housing development project as defined in paragraph (2) of subdivision (h) of Section 65589.5 of the Government Code of the State of California that is in a CN, CC or CS District shall be allowed to increase its floor area ratio as follows:
(i) A housing development project of three to seven units shall have a maximum floor area ratio of 1.0:1.
(ii) A housing development project of eight to ten units shall have a maximum floor area ratio of 1.25:1.
(b) This bonus shall not apply within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code of the State of California, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance. (c) For mixed use development, total mixed use floor area ratio shall be increased to the extent necessary to accommodate a non-residential floor area ratio of 0.4:1 for retail and retail-like uses only.

SECTION 21. Section 18.18.060 (Development Standards) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

(a) Exclusively Non-Residential Use

[. . .]

(b) Mixed Use and Residential
Table 3 specifies the development standards for new residential mixed use developments and residential developments. These developments shall be designed and constructed in compliance with the following requirements and the context-based design criteria outlines in Section 18.18.110, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section 18.76.020:

TABLE 3

MIXED USE AND RESIDENTIAL DEVELOPMENT STANDARDS
CD-C CD-S CD-N Subject to
regulations in
Section:
[. . .] [. . .] [. . .] [. . .] [. . .]
Maximum Residential
Floor Area Ratio (FAR)

1.0:1(3) 0.6:1(3) 0.5:1(3) 18.18.065,

18.18.070

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Maximum Nonresidential
Floor Area Ratio (FAR)

1.0:1(3) 0.4:1 0.4:1

Total Floor Area Ratio
(FAR)(3)

2.0:1(3) 1.0:1(3) 0.9:1(3) 18.18.065,

18.18.070
[. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
(1) Required usable open space: (1) may be any combination of private and common open spaces; (2) does not need to be located on the ground (but rooftop gardens are not included as open space except as provided below); (3) minimum private open space dimension 6; and (4) minimum common open space dimension 12 For CN and CS sites on El Camino Real, CS sites on San Antonio Road between Middlefield Road and East Charleston Road and CC(2) sites that do not abut a single- or two-family residential use or zoning district, rooftop gardens may qualify as usable open space and may count as up to 60% of the required usable open space for the residential component of a project. In order to qualify as usable open space, the rooftop garden shall meet the requirements set forth in Section 18.40.230.
[. . .]
(3) FAR may be increased with transfers of development, increased floor area for housing development projects with 3-10 residential units and/or bonuses for seismic and historic rehabilitation upgrades, not to exceed a total site FAR of 3.0:1 in the CD-C subdistrict or

2.0:1 in the CD-S or CD-N subdistrict.
[. . .]
(5) The weighted average residential unit size shall be calculated by dividing the sum of the square footage of all units by the number of units. For example, a project with ten 800- square foot 1-bedroom units, eight 1,200-square foot 2-bedroom units, and two 1,800- square foot 3-bedroom units would have a weighted average residential unit size of ((10x800)+(8x1,200)+(2x1,800)) ÷ (10+8+2) = 1,060 square feet.

[. . .]

SECTION 22. Section 18.18.065 (Increased Floor Area for Housing Developments of 3-10 Units) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is added to read as follows:

18.16.065 Increased Floor Area for Housing Developments of 3-10 Units

(a) A housing development project as defined in paragraph (2) of subdivision (h) of Section 65589.5 of the Government Code of the State of California that is in a CD Districts shall be allowed to increase its floor area ratio as follows:
(i) A housing development project of three to seven units shall have a maximum residential floor area ratio of 1.0:1.
(ii) A housing development project of eight to ten units shall have a maximum residential floor area ratio of 1.25:1.

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(b) This bonus shall not apply within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code of the State of California, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance. (c) For mixed use development in the CD-N and CD-S subdistricts, total floor area ratio shall be increased to the extent necessary to accommodate a non-residential floor area ratio of 0.4:1 for retail and retail-like uses only.
(d) In no event shall total floor area ratio exceed 3.0:1 in the CD-C subdistrict, or 2.0:1 in the CD-N and CD-S subdistricts.

SECTION 23. Section 16.65.025 (Exemptions) of Chapter 16.65 (Citywide Affordable Housing Requirements) of Title 16 (Building Regulations) of the Palo Alto Municipal Code is amended to read as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

16.65.025 Exemptions.

The following development projects are exempt from the provisions of this chapter:
(a) Residential projects consisting of the construction of one or two units, other than accessory dwelling units and junior accessory dwelling units, unless: (1) included in a mixed use project, (2) constructed on a lot created by an Urban Lot Split under Chapter

21.10; or (3) resulting in a two-family use on a single-family zoned lot; (b) Accessory dwelling units, unless: (1) constructed on a lot created by an Urban Lot Split under Chapter 21.10; or (2) the accessory dwelling unit is constructed on a single-family zoned lot containing a two-family use;
(c) Junior accessory dwelling units and, notwithstanding subsection (b), all accessory dwelling units less than 750 square feet;

[. . .]

SECTION 24. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.

SECTION 25. The City Council finds that this Ordinance is statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) for the following reasons. Under Government Code Sections 66411.7(n) and 65852.21(j), an ordinance adopted to implement the requirements of SB 9 shall not be considered a project under CEQA. Additional sections of this ordinance implementing SB 478 are exempt pursuant to Section 15061 of the State CEQA Guidelines because they simply reflect pre-emptive state law that will be effective January 1,

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2022. As such, this ordinance does not reflect a change from the status quo and it therefore can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment.

SECTION 26. This ordinance shall be effective on the thirty-first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Director of Planning
and Development Services

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City of Palo Alto (ID # 13881)
City Council Staff Report

Meeting Date: 1/10/2022

City of Palo Alto Page 1

Title: SECOND READING: Adoption of an Ordinance Restating Procedures For Expedited Permitting Processing For Electric Vehicle Charging Systems (FIRST READING: December 13, 2021 PASSED: 6 -0, Kou absent)
From: City Manager
Lead Department: City Clerk

This was heard by the City Council on December 13, 2021 for a first reading and was approved 6-0, Kou absent. No changes were made to the Ordinance; it is now before you for a second reading.

Attachments:
• Attachment8.a: Attachment A: Ordinance Reinstating 16.14.440 Procedures for Expedited Permitting Processing for Electric Vehicle Charging Systems 8 Packet Pg. 141
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Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Restating Procedures For Expedited Permitting Processing For Electric Vehicle Charging Systems

The City Council of the City of Palo Alto ORDAINS as follows:

SECTION 1. Findings and Declarations.

A. The State of California and the City of Palo Alto have consistently promoted and encouraged the use of fuel-efficient electric vehicles.

B. The State of California recently adopted Assembly Bill 1236, which requires local agencies to adopt an ordinance that creates an expedited and streamlined permitting process for electric vehicle charging systems.

C. Creation of an expedited, streamlined permitting process for electric vehicle charging stations would facilitate convenient charging of electric vehicles and help reduce the City’s reliance on environmentally damaging fossil fuels.

D. On June 27, 2017, the City Council adopted Ordinance 5415, creating an expedited permitting process for Electric Vehicle Charging Stations as Section 16.14.440 of the Palo Alto Municipal Code.

E. The provisions adopted by Ordinance 5415 were inadvertently omitted from subsequent ordinances amending Chapter 16.14 of the Palo Alto Municipal Code. The City Council now wishes to correct this omission.

SECTION 2
. Section 16.14.440 of Chapter 16.14 (California Green Building Standards Code) of the Palo Alto Municipal Code is hereby added to read:

16.14.440. Expedited Permitting Process for Electric Vehicle Charging Stations

(a) Definitions
(1) “Electric vehicle charging station” or “charging station” means any level of electric vehicle supply equipment station that is designed and built in compliance with Article 625 of the California Electrical Code, as it reads on the effective date of this Chapter, and delivers electricity from a source outside an electric vehicle into a plug-in electric vehicle.

(2) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, and written public health

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or safety standards, policies, or conditions as they existed on the date the application was deemed complete.

(3) “Electronic submittal” means the utilization of one or more of the following:
i. Electronic mail or email.
ii. The internet.
iii. Facsimile.

(b) Expedited Permitting Process. Consistent with Government Code Section 65850.7, the Chief Building Official shall implement an expedited, streamlined permitting process for electric vehicle charging stations, and adopt a checklist of all requirements with which electric vehicle charging stations shall comply with in order to be eligible for expedited review. The expedited, streamlined permitting process and checklist may refer to the recommendations contained in the most current version of the “Plug-In Electric Vehicle Infrastructure Permitting Checklist” of the “Zero-Emission Vehicles in California: Community Readiness Guidebook” as published by the Governor’s Office of Planning and Research.

The City’s adopted checklist shall be published on the City’s website.

(c) Permit Application Processing
(1) Prior to submitting an application for processing, the applicant shall verify that the installation of an electric vehicle charging station will not have specific, adverse impact to public health and safety and building occupants.

Verification by the applicant includes but is not limited to: electrical system capacity and loads; electrical system wiring, bonding and overcurrent protection; building infrastructure affected by charging station equipment and associated conduits; areas of charging station equipment and vehicle parking.

(2) A permit application that satisfies the information requirements in the City’s adopted checklist shall be deemed complete and be promptly processed.

Upon confirmation by the Chief Building Official that the permit application and supporting documents meets the requirements of the City adopted checklist, and is consistent with all applicable laws and health and safety standards, the Chief Building Official shall, consistent with Government Code Section 65850.7, approve the application and issue all necessary permits.

Such approval does not authorize an applicant to energize or utilize the electric vehicle charging station until approval is granted by the City. If the Chief Building Official determines that the permit application is incomplete, he or she shall issue a written correction notice to the applicant, detailing all deficiencies in the application and any additional information required to be eligible for expedited permit issuance.

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(3) The Chief Building Official shall not condition the approval for any electric vehicle charging station permit on the approval of such a system by an association, as that term is defined by Civil Code Section 4080.

(4) Permit applications under this section may be submitted electronically, including electronic signatures on all forms, applications, and other documentation.

(d) Technical Review. It is the intent of this section to encourage the installation of electric vehicle charging stations by removing obstacles to permitting for charging stations so long as the action does not supersede the Chief Building Official’s authority to address higher priority life-safety situations. If the Chief Building Official makes a finding based on substantial evidence that the electric vehicle charging station could have a specific adverse impact upon the public health or safety, as defined in this section, the City may require the applicant to apply for a use permit.

SECTION 3. Severability
. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable.

SECTION 4. CEQA
. The City Council finds that this Ordinance falls under the California Environmental Quality Act (CEQA) exemption found in Title 14 California Code of Regulations Section 15061(b)(3) because it can be seen with certainty that there is no possibility it will have a significant negative effect on the environment.

//

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//

//

//

//

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SECTION 5. Effective Date. This ordinance shall be effective on the thirty-first date after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST: APPROVED:

______________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Director of Planning
and Development Services

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City of Palo Alto (ID # 13892)
City Council Staff Report

Meeting Date: 1/10/2022

City of Palo Alto Page 1

Title: SECOND READING: Adoption of a Park Improvement Ordinance for Renovations at Cameron Park (FIRST READING: February 8, 2021 PASSED: 7 -0) From: City Manager
Lead Department: City Clerk

This was heard by the City Council on February 8, 2021 for a first reading and was approved 7-0.

No changes were made to the Ordinance; it is now before you for a second reading.

Attachments:
• Attachment9.a: Attachment A: Ordinance PIO Cameron Park 9 Packet Pg. 146
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Ordinance No. ___

Ordinance of the Council of the City of Palo Alto Approving and Adopting a Plan for Facility Improvements at Cameron Park

The Council of the City of Palo Alto does ORDAIN as follows:

SECTION 1. Findings and Improvements. The City Council finds and declares that:

(a) Article VIII of the Charter of the City of Palo Alto and section 22.08.005 of the Palo Alto Municipal Code require that, before any substantial building, construction, reconstruction or development is commenced or approved, upon or with respect to any land held by the City for park purposes, the Council shall first cause to be prepared and by ordinance approve and adopt a plan therefor.

(b) Cameron Park (the “Park”) is dedicated to park purposes. (See Municipal Code section 22.08.030)

(c) The City intends to authorize the renovation of various facilities at Cameron Park.

(d) The plan of improvements shall comprise as follows:

(1) Remove and replace existing toddler playground with a playground spanning the age of toddlers through children age five and above; (2) Connect two separate walkways to provide an accessible path to the playground;
(3) Install small picnic tables for leisure use;
(4) Replace or install site furnishings such as seating benches, trash receptacles, and drinking fountain;
(5) Plant a tree near the playground;
(6) Install bocce ball court and/or horseshoe court (if budget allows); and
(7) Install a community garden (if budget allows).

(e) Exhibit A depicts the expected implementation of the plan of improvements.

(f) The plan of improvements described above is consistent with park, playground, recreation, and conservation purposes.

(g) The City Council desires to approve the plan of improvements described above.

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SECTION 2. The City Council hereby approves the plan of improvements in the Park described in this Ordinance.

SECTION 3. The City Council finds that this ordinance falls under the California Environmental Quality Act (CEQA) exemptions found in Title 14 California Code of Regulations Section 15301 (Existing Facilities) and Section 15303 (New Construction of Small Facilities or Structures).

SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Deputy City Attorney City Manager

____________________________
Director of Community Services

____________________________
Director of Administrative Services

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Exhibit A

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City of Palo Alto (ID # 13637)
City Council Staff Report

Report Type: Action Items Meeting Date: 1/10/2022

City of Palo Alto Page 1
Summary Title: NVCAP Concept Plan Review
Title: PUBLIC HEARING: Staff Recommend the City Council Review the North Ventura Coordinated Area Plan (NVCAP) Preferred Alternative, Take Public Comment, and Endorse the Preferred Alternative.

From: City Manager
Lead Department: Planning and Development Services

Recommendation:

Staff recommends that Council review and confirm direction for the preferred plan for the North Ventura Coordinated Area Plan (NVCAP).

Executive Summary:

On September 20, 2021, the City Council reviewed draft NVCAP alternative concepts, components of the different alternatives, the vision of the Working Group, and Council adopted goals for the NVCAP to select a preferred alternative. The Council, in their motion, included direction on 12 items for development in the preferred concept plan. This report describes the Council motion and how the motion affects the preferred plan selection. Staff seeks clarification and confirmation of those items, and ultimately Council’s endorsement of the preferred plan concepts.

Once the preferred plan is confirmed, the City’s consultant will begin work on the draft plan and California Environmental Quality Act (CEQA) analysis. When completed, the draft plan and environmental review will be presented to th e Planning and Transportation Commission (PTC) for recommendation and the Council for adoption.

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Background:

On September 20, 2021, City staff presented an overview of the NVCAP and a set of project alternatives to the City Council. 1 This included the bre akdown of the various components that made up the alternatives. This approach allowed for mixing and matching different elements from each of the three project alternatives to form the preferred plan that reflects Council’s interests.

Following discussion regarding the various components of the alternatives and the objectives, the Council adopted the following motion2 verbatim for the NVCAP preferred plan:

A. For Housing, to follow Alternative 1 plus going to 50-foot height in designated areas; B. For Office, to follow Alternative 1 and evaluate the need for amortization of some office uses;
C. For Retail, incentivizing retail through parking requirements and other ways to encourage (or require) some ground floor retail on El Camino Real and Park Blvd.; D. For Park a nd Open Space, focus on a naturalized creek, Alternative 1 for other buffers, parks, bike paths, and pursue opportunities for park space in the plan area; E. Maintain a maximum 50 -foot height limit with exception for 100% affordable housing, and consider other incentives for affordable housing;
F. Allow higher density housing on the two largest properties in the NVCAP; G. Adaptive reuse of the historic structures subject to CEQA; H. Request staff to return with a recommendation on residential parking requirements based on the existing Fehr & Peers study and other context-based conditions; I. Commercial parking use a blended rate of one per 250 square feet; J. Staff to minimize additional expenditures needed to complete the NVCAP; K. Request staff to return with a researched revi sion or set of alternatives for jobs created per 1,000 square feet of office; and
L. Direct staff to engage with the large property owners in order to meet the goals of this motion.

The motion represented a milestone in the NVCAP process and starting point for confirming a preferred plan.

On October 25, 2021, the City Council also considered a zoning code interpretation regarding the property generally referred to as 340 Portage; one of the larger parcels in the NVCAP plan area. Council postponed its consi deration of the zoning interpretation related to the property but directed staff to begin conversations with representatives of the Sobrato Organization for

1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2021/09-september/20210920/20210920pccr-amended-qa.pdf 2 Passed 5-2 for parts B, E, I & K and passed 6-1 for parts A, C, D, F-H & J) 10 Packet Pg. 151

City of Palo Alto Page 3
the purpose of exploring a possible negotiated agreement regarding the future development of the site.3 While that effort is anticipated to be aligned with Council’s overall direction regarding NVCAP, the results of that effort are ongoing and not addressed in this report. The Council will receive an update on the ongoing conversations in the first quarter of 2022.

Discussion:

The discussion below outlines a preferred plan alternative based on the Council’s adopted motion. Staff wants to ensure that before preparing the preferred plan and evaluating the project consistent with CEQA, that we understand the direction from Council and receive an endorsement of the preferred plan. Additionally, this report identifies opportunities and constraints presented by aspects of the motion, where additional discussion is warranted for further refinement. Figure 1 a nd Attachment A (enlarged map) illustrate the draft preferred alternative.

3 October 25, 2021 Council Motion:

A. Postpone formal interpretation of Palo Alto Municipal Code (PAMC) section 18.70.070(b)(2)(E) for four months, and;
B. Direct Staff to begin conversations with representatives of the Sobrato Organization, possibly involving a Council ad hoc committee, and return to the Council within that same time period with a recommendation on whether or not to continue discussion on a possible negotiated agreement with the property owner for the future redevelopment of the property located at 3200 Park/340 Portage/Olive Avenue.
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Figure 1: Draft Preferred Plan

The tables below provide summary statistics for the draft preferred alternative. Table 1 estimates the number of housing units, commercial squar e footage, and park and open space area that could be generated by the alternative. The “realistic” buildout potential assumes redevelopment of a portion of “Tier 1” opportunity sites, which represents larger underutilized sites as described in previous re ports. Table 1 reports the population, jobs, and other metrics generated as a result of the realistic potential buildout.

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Table 1: Potential Development (Build Out Scenario if Plan is Realized)

LAND USE EXISTING

PREFERRED

ALTERNATIVE
Housing Units - Maximum Potential 142 units 1,380 units Housing Units - Realistic Potential 142 units 670 units Office Commercial (sq. ft.) 744,000 466,000
Retail Commercial (sq. ft.) 111,200 103,700
Parks and Open Space (acres)
(Realistic to Maximum Buildout) 0 2.0 to 5.2
# of Potential Redevelopment Sites
(Range = Realistic to Maximum Sites Turning Over) - 11 to 21 Source: Santa Clara County Assessor’s Office Data, Realquest.com Data, City of Palo Alto GIST Data, Accela Data, and City of Palo Alto, Planning and Development Services Staff.

Table 2: Metrics Based on Realistic Potential

EXISTING

PREFERRED

ALTERNATIVE
Below-Market Rate Housing Units (assumes 15% of total)1 23 100 Residential Population2 340 1,630
Office Jobs3 2,460 1,610
Retail Jobs3 200 160
Housing Units Needed to Support New Jobs - 30
Parks and Open Space (acres/1,000 new residents)
(Realistic to Maximum Buildout) 0 1.6 to 1.7
1 The City requires new for -sale units to locate BMR units on -site; new rental housing typically pays an impact fee only. The current inclusionary requirement for ownership units income restricts 1/3rd of the units to 120% AMI and 2/3rds of the restricted units to 100% AMI.
2 Assumes vacancy rate of 5% and existing household size of 2.55 persons/unit. 3 Based on VTA Congestion Management Program job per square foot ratios

1.23 persons/household, sourced from 2014-2018 American Community Survey 5-Year Estimates.

Source: 2014-2018 American Community Survey 5 -Year Estimates, City of Palo Alto GIST Data, Accela Data, and City of Palo Alto Planning and Development Services.

The section below discusses thematic items that are the building blocks for selection of a preferred plan. Each item addresses a specific topic that is relevant to one or more motion items by the City Council. At the end of each item are a set of recommendations for the Council to consider. Two items of the motion —residential parking and job ratios —were requests for staff to return with additional information.

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1. Housing and Housing Types: Transition commercial uses to residential and residential mixed uses. As in Alternative #1, allow low and higher density on the two largest project sites (395 Page Mill Road and 340 Portage Avenue) and the southern end of El Camino Real.

Heights up to 50 feet would be permitted (55 feet where ground -floor retail; see Items 6 & 7). Housing types may include four to five story mid-rise residential/mixed-use development in these locations and up to 35 -foot/3-story townhome development adjacent t o existing lower density residential uses. (Motion Items A, E & F)

The draft preferred plan proposes a “realistic” development potential for 530 additional residential dwelling units within the plan area or about 670 dwelling units in total. All existing zoning districts except for the General Manufacturing (GM) district permit housing within the plan area. Notably, at 340 Portage there are tradeoffs to determine between the desire for a creek amenity, adaptive reuse, and new residential development built on existing surface parking lots—it will be difficult to achieve all three at the densities described in this item.

Based on existing zoning standards, the maximum height for housing projects in the NVCAP would generally range between 35 and 50 feet. For Neighborhood Commercial (CN) and Service Commercial (CS) property, proximity to a residential district other than High Density Multiple - Family Residential district (RM -40) or a Planned Community (PC) zone would require a lower height. Based on the existing development standards, most of the plan area would be subject to a 35 -foot height limit, except for properties located near El Camino Real/Acacia, El Camino Real/Portage and El Camino Real/Lambert intersections.

Staff recommends that first floor retail spaces have a minimum 15 -foot ceiling height, which is ideal for retailers. Implementing this requirement would affect the overall height of residential mixed-use buildings. While at 35 feet, ground floor retail and two upper of floors of residential are p ossible, it creates a cookie -cutter building form and lacks architecture variation. Local architects have indicated that additional height up to 40 feet for three -story residential mixed- use buildings and 55 feet for five -story residential mixed -use buildi ngs allowed for the necessary space for required elements such as mechanical, electrical, plumbing and fire sprinklers to meet building codes without resorting to eliminating an entire floor. In addition, the extra height allowed for more architectural exp ressions with parapets and cornices. Staff would anticipate that objective standards would control the design of the rooftops of the buildings.

All residential mixed -use projects with ground -floor commercial space with residential above the retail space should be allowed an additional five feet in height to accommodate a taller first floor ceiling, accommodation of required code elements and provisions for architectural design quality. Based on the recommended building heights for the plan, it is anticipat ed that new development could result in low to mid -rise buildings that include townhouses, flat -style condos, apartments and mixed-use with commercial on the ground floor typologies. 10 Packet Pg. 155

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These typologies were developed by the NVCAP
project consultants, Pe rkins & Will and Strategic
Economics, for the preliminary alternatives analysis.

They identify the types, heights, densities of
residential and mixed use typologies that are
feasible and can be expected within the planning
area.

As recommended in the Council’s motion, the plan should allow for higher density housing on the largest properties (395 Page Mill Road and 340 Portage Avenue —Items 6 & 7). As shown in the Low-Rise Block typologies shown above, increase height limits to 50 feet to allow for 4 -5 story buildings. At 340 Portage Ave., this 4 - to 5-story typology will likely not be feasible if the cannery building is retained for adaptive reuse. To accommodate ground -floor retail, staff recommends an additional five feet (55 feet total) to allow adequate ground-floor ceiling height of approximately 15 feet, while still accommodating four floors of residential development above the ground floor. As a voluntary program, when property owners request additional height and density allowance, these large parcels would be required to provide park dedication, as discussed below.

There are portions of the plan area along El Camino Real restricted to 35 feet because of their adjacency to lower density residential districts. To accommodate ground -floor retail, staff recommends an additional five feet (40 feet total) to allow adequate ground floor ceiling height of approximately 15 feet, while still accommodating two floors of residential development above the ground floor. Building massing compatibility with sur rounding lower density residential (Single Family Residential [R -1]) can be achieved through compliance with objective design standards that include techniques such as a partial step down in height and daylight planes.

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Extending similar development standards such as those found in the housing incentive program (i.e., no density limit, no maximum lot coverage, and increased floor area ratio) should be considered for housing sites throughout the plan area to allow for additional flexibility in limiting site constraints.

Staff seeks confirmation and direction based on these recommendations.

Item 1 Recommendations:

• Realistic development potential of 530 dwelling units.

• Rezoning of properties to accommodate plan objectives.

• Higher densities on largest properties (395 Page Mill & 340 Portage).

• Require minimum 15-foot first floor ceiling height for retail spaces.

• Allow height up to 35 feet (applicable properties) and 50 feet. Allow additional height up to 40 (applicable properties) and 55 with ground -floor retail (minimum 15 -foot first floor ceiling height) as indicated on map exhibit with massing compatibility development standards to allow four stories of housing above retail space.

• Height up to 55 feet for housing projects on interior of 395 Page Mill & 340 Portage sites with massing compatibility development standards.

• Townhouses to mid-rise building typologies.

2. Below Market Rate Housing: Support the development of more affordable housing by creating an NVCAP Height and Density Bonus available to 1 00%, deed -restricted, below - market rate housing and 100% deed -restricted workforce housing. Previous staff reports have explored a range of other policy options to support affordable housing which will be incorporated into the NVCAP. These include inclusio nary housing and impact fee requirements, public funding, and alternatives models such as land trusts. (Motion Item E)

Generating affordable housing is one of the key drivers of the plan and is generally supported by all stakeholders and decision -makers alike. For the NVCAP, staff recommends the following components to support the below market rate housing program:

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Bonuses: This involves creating a plan specific height and density program, available to 100% deed-restricted, below market rate housing and 100% deed-restricted workforce housing. The bonus allows such developments height up to 70 feet, above the 50 -foot maximum. The bonus is proposed along the southern stretch of El Camino Real and mid -block along Page Mill Road.

The El Camino Real properties currently have no maximum on residential density, however, the property along Page Mill Road would need to have an extension of the housing incentive program or similar tool, where there is no limit to the maximum density, no limit to the lot coverage, and increases in the floor area ratio to 1.5:1.

Inclusionary Housing: For-sale townhomes can likely support an increased inclusionary housing requirement, from 15 to 20%, based on Strategic Economics’ analysis. However, apartments and condominiums are gener ally feasible at the 15% limit. The current plan and financial feasibility analysis assume the continuation of the existing assessment methods: for -sale units meet the inclusionary housing requirements on-site and rental units would pay an in-lieu fee.

Staff seeks concurrence or direction on the below market rate housing program for the NVCAP.

Item 2 Recommendation

• Confirm options for encouraging and implementing a below market rate housing program (bonus program).

• 20% inclusionary requirement for townhomes (ownership). 15% inclusionary for other housing types (ownership and rental).

3. Office and Amortization: Consistent with the Council’s motion, office would follow Alternative 1 maintaining the current amount of office 4 space and allowing for convers ion to housing but without any timeline to abate the commercial use. The Council also directed staff to evaluate the need for amortization 5 of some office space. The need to amortize office uses depends on Council policy interests. Staff does not anticipat e most property owners in the study area would voluntarily convert existing office space to a residential use

4 Note that “office uses” as described herein include a range of employment classifications from the Zoning Ordinance including Administrative Office Services, Medical Off ice, Research & Development, General Business Office, Professional Office. These are the five categories of office use that are subject to the Annual Office Limit.

5 The process by which nonconforming uses and structures must be eliminated or made to conf orm to requirements of the current zoning regulations at the end of a certain period of time. This period of time, called the amortization period, allows the property owner a return on their investment in the property.

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under the Alternative 1 housing policy as there is limited to no economic incentive to do so.

To the extent Council wants to see more housing deve lopment in place of office in the NVCAP area, there would need to be significant adjustments to local zoning to allow taller, higher density housing or amortization of nonresidential uses, and potentially, a combination of the two.

To the extent Council is interested in amortization – one approach would be to phase out nonresidential uses on currently zoned residential properties. This approach would apply to 340 Portage. As previously noted, a City Council Ad Hoc is meeting with property owner representatives and direction to amortize this specific site is premature pending the outcome of that discussion. Another approach would be to amortize the largest commercial office/R&D uses within the plan area to facilitate greater opportunity for housing development over a defined period of time. In addition to 340 Portage, this would also include 395 Page Mill Road. These two properties combined make up more than half of the total office area in the NVCAP boundary. Another similar approach is to establish a lower threshold to begin transitioning other nonresidential uses toward residential uses over time. Table 3 below summarizes those office spaces over 5,000 square feet in the plan area.

The City Council could also take a more strategic approach and identify spe cific properties it would like to see transition to housing.

Table 3: Office Uses Greater Than 5,000 Square Feet
Address Zoning District Most Recent Use
Office
Square
Footage
395 Page Mill Rd. ROLM (Research, Office and
Limited Manufacturing) General Office 224,852
340 Portage Av. RM-30 (Multiple Family
Residential) R&D/Warehouse 142,744
195 Page Mill Rd. GM (General Manufacturing) Mixed Use:

Apartments/Offices 49,717
3101 Park Blvd. GM (General Manufacturing) General Office 40,000 3045 Park Blvd.

GM (AD) (General
Manufacturing with
Automobile Dealership
Combining District)
Constructed in 2020.

Unoccupied R&D space. 29,120
435/455 Portage
Av. CS (Service Commercial) Research & Development 23,172 441 Page Mill Rd. CS (D)(Service Commercial
with Site and Design Review)
Mixed Use: Residential,
unoccupied commercial 18,000
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Address Zoning District Most Recent Use
Office
Square
Footage
space
411 / 429 Acacia
Av. CS (Service Commercial) General Office 12,067
3239 El Camino
Real CS (Service Commercial) Mixed Use: Offices, Retail 8,288 3200 Ash St. CS (Service Commercial) General Office 7,900 290-300 Lambert
Av. CS (Service Commercial) General Office 6,750
268 - 270 Lambert
Av. CS (Service Commercial) General Office 6,228
412 Olive Av. GM (General Manufacturing) Office / Bank/ Clinic 5,693 Total 574,531
Source: Santa Clara County Assessors Office and City of Palo Alto, 2021.

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Figure 2: Parcels with Office Uses Greater than 5,000 Square Feet

To facilitate the conversion of office space, through the NVCAP process, the City could rezone parcels to prohibit off ice uses and identify alternative uses, such as a residential and commercial retail. Non-conforming spaces would have at least 15 years to amortize these uses, based existing amortization regulations in PAMC 18.70.070. Realistically, almost all sites will prepare and submit studies to request additional time to recoup investments. The City would likely wish to prepare its own studies and amortization schedules would need to be established on a case by case basis. As a result, amortization is likely to unfol d over a 15 to 35+ year time frame. The City would need to identify funding for its own economic analyses of affected properties.

Notably, amortization will be unpopular among most property owners. Previous economic analyses by Strategic Economics indica te the high lease values of office uses and the resulting high property values compared to other uses, including residential. Moreover, the two largest property owners have indicated they are interested in continuing office uses according to their 10 Packet Pg. 161

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public c omment letters at the September 20, 2021 City Council. Separately, a third property owner with multiple sites in the planning area has indicated to staff that they are not interested in reducing their R&D/office presence. However, they stated an interest i n developing residential uses if they could maintain (rebuild) their existing commercial floor area.

Item 3 Recommendations

• Consider options for amortization, if desired:
o Amortization by zoning district
o Amortization by square footage threshold

• If amortization is supported:
o Rezone parcels to prohibit office uses and identify alternative uses such as residential, retail or retail like and public open space. o Non-conforming spaces would have at least 15 -35 years to amortize office uses based on regulations contained in PAMC 18.70.070. When accounting for the age of construction, the amortization schedule is governed by the table within PAMC 18.70.070.
o Sites with more recent improvements may prepare and submit studies to request additional time to recoup investments.

4. Retail Incentives: Allow ground floor commercial in all locations, focusing on key locations within the Plan area. Offer a five-foot bonus height for mixed-use projects with ground floor retail and three to four floors of residential above (between 40 and 55 feet) on the northern reach of Park Boulevard and the southern reach of El Camino Real to facilitate high -quality retail spaces and housing development. (Motion Item C)

City Council Motion Item C recommended incentivizing retail through parking requirements and other ways to encourage or require ground floor retail along El Camino Real and Park Boulevard.

For the greatest flexibility to locate retail, staff recommends allowing ground floor commercial in all locations (except the R -1 distr ict). The plan also identifies ground floor retail along El Camino Real, and Park Boulevard.

Additionally, staff recommends a five -foot bonus height to accommodate a minimum 15 -foot ground floor ceiling height for retail within mixed -use buildings with three or floor floors of residential above the retail space. Taller ceilings are ideal for successful retailers to 10 Packet Pg. 162

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accommodate customer preferences to feel less confined during a shopping experience. Having taller ceilings for the ground floor is also a cr itical part of what makes a building feel comfortable for pedestrians on the adjacent sidewalk. This would mean mixed -use buildings could have heights ranging between 40 and 55 feet (three to five stories). See Item #1 for further discussion regarding building form.

New housing units can support approximately 15 square feet of retail per housing unit (assuming an internal capture rate of 25% of shopping within the plan area). 6 Therefore, the 530 new housing units anticipated over the 20 -year plan horizon could support 7,500 square feet of retail/retail like development, as previously presented. This equates to four to eight retail/retail like businesses within the plan area and is likely not enough retail floor area to generate synergies between uses or vibrancy in the neighborhood. At these levels, ground floor retail tends to be a “loss leader” since it does not generate revenues above development costs.

The five -foot bonus would also allow a project to still develop four stories of residential development, above the ground -floor, which would improve feasibility of providing retail as an amenity (a loss leader) instead of as a revenue generator.

To further incentivize retail or retail like uses, the first 1,500 square feet of retail space could be exempted from vehicle parking requirements. This is already in place for ground -floor retail in residential mixed -use developments in the Downtown Commercial (CD -C) zone, Community Commercial Subdistrict (CC(2)) zone, on CN and CS zoned sites abutting El Camin o Real, and on CS zoned sites abutting San Antonio Road between Middlefield Road and East Charleston Road.

Within the NVCAP, this is already applicable along El Camino Real properties. Allowing this exemption for retail uses regardless of whether the retai l is within a building containing residential or confined to the ground -floor would be an expansion of the current exemption.

This action could further spur retail development. Staff seeks confirmation of this approach.

Other ways to incentivize are to co nsider fee reductions or fee waivers and/or reduced review times for building permits for qualified retail projects such as local businesses or other identified businesses. These actions may reduce a barrier to entry for smaller businesses.

Item 4 Recommendations:

• Allow retail in all zoning locations except for R-1.

• Require retail in select areas as indicated on map (northern portion of Park Boulevard

6 According to Strategic Economics Draft Plan Alternatives Presentation: Retail Demand Analysis, December 27, 2019.
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and El Camino Real). The existing Retail Preservation Ordinance (PAMC 18.40.180 still applies where applicable.

• Require a minimium 15 -foot ceiling height for the ground floor retail space for residential mixed use buildings. Provide a five foot bonus height for residential mixed - use buildings that provide ground floor retail and residential floors above.

• The first 1,500 square feet of retail uses shall not be counted toward the vehicle parking requirement.

• Consider fee reductions, fee waivers and/or reduced review times for building permits for qualified retail project such as local businesses.

5. Open Space: Accommodate (1) new public parks, and (2) other kinds of public open spaces, such as landscape buffers, plazas, and bike/ped paths, including woonerfs. Pursue several strategies for public open space development including land dedication requirements , incentives for publicly -accesible open spaces, impacts fees, public subsidy, easements on private property to support naturalization of Matedero Creek and pedestrian and bicycle connections, including woonerfs and other pedestrian/bike paths. This menu o f options approach can provide options for developers and property owners while providing a range of public open spaces that support livability. (Motion Item D)

The Council motion regarding public open space focused on a naturalizing Matadero Creek and then pursuing other opportunities for open space, including parks, landscape buffers, and bike paths. Given the minimal amount of development that can be expected under this preferred plan, the City will need to pursue several strategies and public initiativ es to generate public open space in the planning area.

Open Space Program
The draft preferred plan distinguishes between new public parks and other types of public open spaces, including a linear park along Matadero Creek. Under these conditions, approx imately

2.0 to 5.2 acres of parkland could be developed, under the realistic and maximum buildout scenarios, respectively. This equates to 1.6 acres/1,000 residents to 1.7 acres/1,000 residents, under realistic and maximum buildout, respectively. 7 This range does not meet the 4 acres/1,000 residents aspired to in the Comprehensive Plan. The maximum buildout open space concept is illustrated in Figure 3.

7 Figures 1 and 3 show a best-case scenario (the maximum buildout scenario) for how to generate public open spaces.
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Figure 3. Public Open Space Concept

Public Parks . Public parks are attainable through City acquisition or requirements for land dedication. The City could acquire parcels to turn into public parks. However, this is an expensive proposition based on land costs. Developers who develop public open space within their project sites could be exempt from paying park impact fees.

Additionally, staff recommends that the NVCAP include a policy that enables impact fees collected within the planning area to be used with ¼ -mile of the planning area. The draft preferred alternative is unlikely to generate substantial par k impact fees; therefore, additional public subsidy (e.g., bond funds, CIP) will be required to fund acquisition.

The Subdivision Ordinance (PAMC Title 21) currently requires that subdivisions with 50+ units/lots dedicate open space. The 50+ unit threshol d is derived from state law, which permits only the collection of in -lieu fees for subdivisions of 50 or fewer units. This ordinance could facilitate new parks if the largest properties redevelop with a subdivision (i.e, for sale units).

However, there is also an option for projects that are subject to land dedication to pay an in - lieu fee that meet certain criteria. The City could explore removing the option of in -lieu fees for large subdivisions. Notably, amendments to the Subdivision Ordinance would appl y citywide, not just in the NVCAP planning area.

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The NVCAP could include a voluntary program for parcels over five acres (or a similarly large threshold) to dedicate land for public park (or privately maintain publicly accessible open space) when the property owner requests height and density increases outlined in Item 1. This would provide a voluntary way to achieve parkland for rental developments. At 340 Portage Avenue, 30% parkland dedication could generate 4.2 acres of parkland, including a linear par k and trail along Matadero Creek, a woonerf on the privately -owned section of Portage Avenue, and a 2 - acre public park adjacent to Matedero Creek, as shown in Figure 3. At 395 Page Mill Rd., a 10% parkland dedication could include retetion of the mature tr ees and bioswale along Olive Avenue. Additional parkland dedication, for example up to 30%, to allow for a large public park, could be achievable with more substantial repositioning of the office building parking garage, and surface parking lot.

Notably, under the proposed land use plan, redevelopment is unlikely in the near term and these parks may not materialize. However, aside from site acquistion for public park, this is the strategy that can generate larger contiguous green open spaces.

Other Open Spaces. Other open space areas, such as woonerfs/bike paths and other publicly accessible open space areas and plazas, could augment larger public parks:

• Matadero Creek: The Council’s motion D focuses on naturalization of Matadero Creek.

Five concepts for naturalization of the creek are included in the Matadero Creek Conceptual Alternative Analysis 8. The preferred plan includes Concept 3. Naturalization of the creek would entail the demolition and removal of the existing U -shaped concrete flood wall, insta llation of an earthen channel bottom, riparian plantings, access for maintenance and recreation and flood walls to mitigated flood risk. Three of the concepts include integration of the creek with Boulware Park.

Concept 1 and its alternative would expand the channel corridor to the extent of the existing Valley Water easement (60 feet), which is double the existing 30 -foot U-shaped concrete channel.

Concept 2 and its alternative would expand the channel corridor to 85 feet and include increased angled ba nk on one side. The area available for riparian plantings, creative landscape architecture design and recreation access would be increased along the modified left bank slope as well as across the channel bottom within the existing right - of-way.

Concept 3 would expand the channel corridor to 100 feet. The area available for riparian

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plantings, creative landscape architecture design and recreation access would be increased along the margin of the low elevation channel bottom adjacent to the inset geomorphic channel. Concept 3 appears to mostly align with the Council’s motion. The Council may decide that the other concepts are better options.

Concept 3 naturalization option would likely require a combination of a City -initiated bond effort, expanded easement s, and dedication of private land. At 340 Portage, the City could seek to widen the existing creek easement as well as require at least a portion of the parkland dedication to be adjacent to Matadero Creek to create a complementary park space. Along the south side of the creek, where there are multiple owners, the City could pursue individual easements, that would “spring” into effect as properties redevelop, for a southern creek trail.

The full naturalization option requires widening the flood channel to at least 100 feet from Park Boulevard to Chestnut Avenue and replacement of the Lambert Avenue bridge to accommodate a 100 -foot span. The required land would decrease land available for housing development. This would also require subdivision of the 340 Portage parcel and acquisition of the resulting parcel, eminent domain, or willing partnership to naturalize this portion of the creek. This concept would allow for planting on the concrete retaining walls, new maintenance access ramps and pedestrian pathways for access and recreation.

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Concept 3 in the Matadero Creek Conceptual Alternative Analysis, WRA, Inc. September 2020

• Woonerf/Bike Paths: At 340 Portage, require use of the public access easement (the eastern segment of Portage Avenue) as a woo nerf9. Explore rezoning of GM-zoned sites between Park Boulevard and the railroad tracks to include space for a bike path along the tracks and to connect to a future pedestrian/bike railroad crossing. Pursue a ped/bike path between Olive and Acacia Avenues , in coordination with private properties owners, to improve connectivity. City -initiated projects may be required to achieve other woonerfs and bike paths.

• Other Publicly-Accessible Open Spaces/Plaza/”POPOS”: Require publicly-accessible open space for all other projects on sites in exchange for higher floor area and height limits to generate landscaped buffers and plazas. This could be in the form of privately -owned public open space (“POPOS”) which are common in San Francisco, and could be assessed on a similar square foot basis as private or common open space requirements.

Sites are visibly signed and publicly accessible during daytime hours, but maintained and operated by the private developer. One pitfall of this strategy is that open spaces will likely be small, proportional to the development site, and not contiguous.

Item 5 Recommendations:

• Plan for naturalized creek implementation based on Concept 3. • Pursue other types of open space, including linear parks, ped/bike paths and woonerfs, plazas, and landscape buffers.
• Enable impact fees collected within the planning area to be used with ¼ -mile of the planning area.
• Modify Subdivision Ordinance to require land dedication for projects with a minimum

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of 30 lots/units (from 50 lots/units, currently). This amendment would apply citywide. • As a voluntary program when property owners of project sites over five acres request height and density increases up to 50 -55 feet described herein, require public parkland dedication.

6. 340 Portage Avenue Housing & C annery Adaptive Reuse: The preferred plan anticipates maintaining the current amount of office space and transitioning commercial space to housing over time. No new office space would be allowed once former office space is discontinued and housing established consistent with the underlying residential zoning. The preferred plan accommodates new housing primarily through adaptive reuse, as specified in Item 1. Additions to the historic building could be considered to allow taller heights, above 35 feet, and more density. In addition to adaptive reuse, townhome development with approximately 35 -foot maximum heights could be built on the remaining narrow surface parking areas. Building massing compatibility with surrounding lower density residential (R - 1) can b e achieved through compliance with objective design standards that include techniques such as a partial step down in height and daylight planes. Retention of the Ash potentially historic building for creative arts uses, such as galleries, artist studios, a nd live/work.

The site is an irregularly shaped 12.5 -acre parcel between Park Boulevard and El Camino Real.

What appears to be one large building at 340 Portage Avenue is composed of approximately ten buildings that were constructed at various times betw een 1918 and 1949. The building is surrounded by a narrow parking lot to the northwest and a larger parking lot to the southeast.

The rectangular former cannery building features walls that are concrete, corrugated metals or wood siding, with a variety of roof shapes. Significant renovation would be required to reuse the buildings as residential units, with code-compliant openings, egress, structural columns, and building systems to meet Building Code requirements.

As one the larger parcels in the NVCAP, 340 Portage Avenue represents opportunity for new development. However, the property also contains constraints such as the former cannery and office building (historically eligible) and the proposed SB330 application for 91 townhouses.

On October 25 th, t he City Council voted 6 -1 to engage the property owner in a conversation about a possible negotiated agreement for redevelopment of this property. A City Council ad hoc committee has been formed and includes Councilmember Lydia Kou and Mayor Tom DuBois. The outcome of a future Council -endorsed negotiated agreement may alter the NVCAP planning effort specifically as it relates to this property and generally the NVCAP project area.

The recommendations and direction sought in this report do not take into consi deration a possible negotiated outcome.
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If a negotiated outcome is not achieved, the City could continue to advance its interests to encourage more housing at this location through amortization or other policy incentives to support adaptive reuse of the cannery building. However, interest to support a naturalized creek and expanded open space (Motion Reference D), retention of the historically eligible cannery building and Ash building (Motion Reference G) and allowing higher density housing (Motion Reference F) will require prioritization as the planning process continues.

Item 6 Recommendations:

• Transition office use on site including considering amortization (See Item 3)

• Property owner to explore adaptive reuse of cannery building as residential and Ash office building for creative arts

• Allow residential and mixed-use buildings with heights up to 55 feet on the interior

• Accommodate open space concepts (See Item 5)

• Consider tradeoffs and desire for public open space land dedication/creek amenity, adaptive reuse of the cannery building, and new multifamily housing

7. 395 Page Mill Road: The preferred plan for the site maintains current office space, however, does not allow expansion of any office space. The Plan accommodates new housing as specified in Item 1, while retaining the existing office building. Office uses could be amortized, as specified in Item 3 to acelerate transition to housing. Building heights increase from 35 feet (existing) to 50 feet; allow up to 55 feet in height for housing proj ects on the interior of the site; density increase above 30 du/ac to facilitate four to five story mid-rise development. Property owners have expressed interest in redevelopment and housing production only if office uses are maintained and expanded. (Motion Items F and L)

As one of the larger properties in the NVCAP, 395 Page Mill Road represents opportunity for new development. However, the site also includes constraints such as the existing three -story office building and parking garage constructed in 2000.

The site is a 9.87 -acre parcel bound by Park Boulevard, Page Mill Road, Ash Street, and Olive Avenue. The site includes a 224,852 square foot, three -story office building, a large surface parking lot, and a smaller two -level parking garage. The site includes a large linear vegetated 10 Packet Pg. 170

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area along Olive Avenue and Ash Street that serves as a landscaped buffer for the adjacent low - density residential uses across from the property. Currently, the building consists of office users. The preferred plan assumes the current office space on site would be maintained with no expansion of office space. The remainder of the site could transition to housing with ground floor retail over time.

Potential development on the site appears readily possible on the western p ortion of the surface parking lot. Staff recommends permitting housing buildings up to 50 feet in height with portions on the interior of the site having buildings allowed up to 55 feet. At the Page Mill Road/Park Boulevard intersection, the building coul d also be up to 55 feet accommodating ground-floor retail. Building massing compatibility with surrounding lower density residential (R-1) can be achieved through compliance with objective design standards that include techniques such as a partial step down in height and daylight planes.

The property owner presented a concept for redevelopment of the site at the September 20, 2021 Council meeting. This concept expanded the office use, added housing units, and a public park. However, any option to amortize office space and not allow expansion of office would unlikely lead to redevelopment of the site in the near-term.

Item 7 Recommendations:

• Maintain current office space with no expansion of office space.

• Allow residential and mixed -use buildings with h eights up to 55 feet on the interior and at the intersection of Page Mill Road/Park Boulevard.

8. Residential Parking Ratio: Based on the Fehr & Peers parking occupancy study, consider expressing the City’s existing parking standards as a maximum instead o f a minimum and allow reduced parking requirements in exhange for providing exceptional bicycle and transit incentives. (Motion Item H)

The City engaged Fehr & Peers, a transportation consulting firm, to conduct a study of parking demand in multi-family rental developments in Palo Alto in 2017 and 2018. The study evaluated parking demand and support across nine developments including market rate, affordable, and senior housing located at varying distances to transit.

None of the studied projects had unb undled parking, meaning that parking was included in the cost of the unit. Therefore, we can expect that tenants park on -site as long as parking is available. Still, to provide the most conservative scenario, the numbers below report peak 10 Packet Pg. 171

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demand (typically late night) for on -site and off -site parking. As a result, these numbers likely overestimate demand since they include on -street parking occupied by other residents or visitors on the block. For market rate projects, the study found a range of parking occ upancy rates, between 0.58 and 0.97 spaces per bedroom, at peak occupancy. These rates fall within the City’s required parking ratio of one space per studio/1 -bedroom and two spaces per 2+ bedroom, especially since the market rate projects are primarily 1 - and 2-bedroom units, with just 3% 3-bedroom units. Two of the three market-rate projects evaluated were well-below this threshold, at 0.58 and 0.69 spaces/bedroom, respectively.10

Photo Left: This bicycle storage room at multifamily housing development in Berkeley includes amenities and facilities that make biking an attractive and convenient travel choice: bike repair tools and a workspace, a vending machine with basic bike supplies like tubes and lights, a water fountain, ample secure bike storage, vi brant artwork, good lighting, and direct access to the sidewalk. Photo Right: Car sharing options are rapidly evolving beyond well -known local providers like Zipcar. For example, Envoy has partnered with multifamily housing developers/operators in San Fran cisco and Oakland to offer on - site shared electric vehicles for tenants’ use.

These findings suggest that a parking standard between 0.6 and 1.0 spaces per bedroom (capped at 2 -bedrooms) would be appropriate to accommodate peak demand. Given the location of the NVCAP planning area, within ½ mile of the California Avenue Caltrain Station and El Camino Real Santa Clara Valley Transportation Authority (VTA) bus lines, NVCAP is identified as a transit -oriented location in the Comprehensive Plan and is within a designated Planned Development Area, according to the Association of Bay Area Governments/Metropolitan Transportation Commission (ABAG/MTC). The Comprehensive Plan supports multi -modal access for the plan area, encouraging travel by bicycle, on foot, and by transit to reduce vehicle trips. The Council -adopted goals for the NVCAP and the Working Group vision for the NVCAP likewise support development of a neighborhood that has local services and infrastructure that support walking and biking.

10 Fehr & Peers, City of Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study, August 2018. 10 Packet Pg. 172

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The NVCAP could implement this transit-oriented vision, by coupling reduced parking standards with incentives for walking, biking and transit. For example, the NVCAP could establish the current parking requirements as a maximum instead of a minimum and create objectiv e standards for allowed reductions, as shown in the text box below.

Item 8 Recommendations:

Maximum Parking Requirement
• 1 space per studio/1-bedroom and two spaces per 2+ bedroom (existing standard)

Minimum Parking Requirement
• 0.5 space/unit; and
• Exceptional Bicycle Parking: bicycle parking at one space/unit, with 10% large bike spaces (e.g., cargo bikes, bikes with trailers), 10% electric bike charging spaces, repair facilities, direct access to the street, etc.; and
• On-Site Car Share (e.g., one designated car share space/50 units, 2/100+ units) • Free Transit Passes (e.g. one Caltrain GoPass or one CTA EcoPass per unit)

As an alternative, if the Council prefers maintaining parking minimum requirements, then the Council could consider reducing the mi nimum parking requirement from 1 space per bedroom (up to 2 spaces per 2+ bedrooms) to 0.6 spaces/bedroom (still capped at 2 spaces), as suggested by the most conservative finding in the Fehr & Peers study findings.

9. Commercial Parking Ratio: Blended parking standard same as Downtown Palo Alto as one space per 250 square feet. Exempt first 1,500 square feet of retail from parking requirement. (Motion Item I)

City Council Motion Item I recommended that the NVCAP follow the blended commercial use parking requirements for the Downtown University Parking District (one space per 250 square feet of commercial use). This will simplify parking requirements and allow commercial uses to change over time more readily without requiring additional parking to be develop ed, which could impede turnover. Any incentives for retail that reduce parking would be considered in addition to the standard.

Item 9 Recommendation

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Minimum parking requirement
• All uses (except residential): One space per 250 square feet

10. Employment Density: Throughout the development of the NVCAP alternatives, staff has used Santa Clara Valley Transportation Authority’s (VTA) employment density of 3.4 jobs/1,000 square feet of office. Based on review of other employment density figures throughout the Bay Area, it is recommended to continue using the VTA figure. (Motion Item K)

City Council Motion K directed staff to return with a researched revision or set of alternatives for jobs created per 1,000 square feet of office (employment density for off ice). A concern was that the figure presented for employment density for office underestimated the number of jobs created and results in lower impact fees collected.

Throughout the development of the NVCAP alternatives, the City has used the VTA Congesti on Management Plan (CMP) annual monitoring and conformance report for the employment density. For commercial and industrial approvals, changes in square footage are used to estimate the number of jobs created or lost. Jobs are estimated by applying an empl oyment density value (measured in jobs per 1,000 square feet) to the size of the site. Employment density values vary depending on the specific land use type. The appropriate employment density is multiplied by the square footage of each site to determine the number of estimated jobs. These job ratios are used in the countywide traffic model and therefore will also be used in the NVCAP trip generation analysis. Table 4 describes the density values and land use categories.

Table 4: VTA Commercial and Industrial Employment Densities11

Density (per
1,000 sq. ft. Land Use

3.4 Office/Educational/Institutional/Hospital

3.1 Transportation

2.5 Research & Development

2.0 Hotel

1.75 Retail/Manufacturing

0.75 Non-Manufacturing

11 2018 VTA CMP Monitoring & Conformance Report. https://www.vta.org/sites/default/files/2020- 08/2018%20Monitoring%20Report.pdf
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The City’s Commercial Linkage Fe e was adopted in 2016 based on a nexus study prepared by Strategic Economics 12. One of the components in establishing the fee was determining the average employment density for office/research & development/medical office and hotels. The average employment density for office/research & development and medical office was determined to be 3.0 jobs per 1,000 square feet of space.

The nexus study figure appears to be consistent with the VTA employment density. Research & development space has laboratory areas that results in more floor area per employee. If the office and research & development categories of the VTA employment densities are averaged it results in 2.95 jobs per 1,000 square feet of space. When rounded this equates to 3.0 jobs per 1,000 square feet of space or the same as the commercial linkage fee nexus study employment density figure.

Other cities in the Bay Area have used the following employment densities for office:

• City of Santa Clara (2010)13: 2.4 jobs/1,000 square feet • San Mateo County (2015)14: 3.0 jobs/1,000 square feet (21 Elements Study) • Oakland (2016)15: 3.6 jobs/1,000 square feet
• San Francisco (2019)16: 4.2 jobs/1,000 square feet
• San Jose (2020)17: 3.3 jobs/1,000 square feet (pre-pandemic)

2.5 jobs/1,000 square feet (pandemic, post-pandemic)
• San Jose (2020) (high-tech): 4.4 jobs/1,000 square feet (pre-pandemic)

3.3 jobs/1,000 square feet (pandemic, post-pandemic)

The other cities within the Bay Area include a range between 2.4 jobs per 1,000 to 4.4 jobs per 1,000. San Jose takes a step further and makes assumptions on employment densities during the pandemic and post -pandemic. Those employment density numbers trend downward. Palo Alto’s employment density appears to be within range of other communities in the Bay Area.

12 December 12, 2016 Council Staff Report and attachments. http://www.cityofpaloalto.org/civicax/filebank/documents/55042 13 Santa Clara General Plan Land Use Assumptions Appendix 8.6. https://www.santaclaraca.gov/home/showpublisheddocument/12890/635713044859030000 14 21 Elements Commercial Linkage Fee Nexus Study 2015. http://www.21elements.com/documents-mainmenu- 3/impact-fees-and-inclusionary-housing/763-redwood-city-revised-commercial-report-091415/file 15 Oakland Market Assessment 2016.
https://mtc.ca.gov/sites/default/files/CCTS_Oakland_MktAssessment_FINAL.pdf 16 Job Housing Nexus Analysis: San Francisco 2019.
https://sfgov.legistar.com/View.ashx?M=F&ID=7297881&GUID=36D31872-977F-4EC2-A2FE-CDD21E62D99F 17 San Jose Commercial Linkage Fee Nexus Study 2020.
https://www.sanjoseca.gov/home/showdocument?id=61766
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Staff seeks confirmation or direction to continue to use VTA’s employment density figure for jobs created for office.

Item 10 Recommendation:

• Continue to use 3.4 jobs/1,000 square feet of office

11. Outreach: After the September 20, 2021 Council meeting, Staff met wi th one of the larger property owners in the planning area to provide an update on the plan. Staff will continue to engage large property owners and others that are interested in the NVCAP development. (Motion Item L)

Based on previous correspondence in t he record from the owners of these two sites, Jay Paul Company and Sobrato Organization, redevelopment is unlikely under the draft preferred plan conditions proposed. In particular, Jay Paul Company has indicated that it does not intend to redevelop without an expansion of their office space. The Sobrato Organization may continue to pursue redevelopment of its surface parking lots into housing as it has proposed to date, but it is not clear that adaptive reuse of the cannery into a use other than office/res earch & development is anticipated.

Two other property owners with significant ownership in the planning area have indicated that they are interested in redevelopment, including with residential uses. Both indicated that some private-owned publicly-accessible open space at the ground -level and/or along the creek could be feasible if the height, density, and/or parking regulations or some other flexibility in existing requirements could accommodate their desired development plans.

The first owner expressed a desire for heights of 60 -70 feet and a parking ratio of less than one space per unit to accommodate a residential apartment development. The second owner would be interested in redeveloping an office and research & development site with residential use s if they can consolidate their total office and research & development floor area on another one of their sites (i.e., no net loss of commercial area). Their preference was to have single use buildings (i.e., office separate from residential) to allow mor e flexible leasing. Neither property owner is likely to redevelop their properties under the draft preferred plan due to the height limits and amortization provisions, respectively.

12. Potential for Change : Limited in short term; unknown in the long term. M odest redevelopment into residential mixed use on small sites in the short term. Redevelopment of the two largest sites is unlikely in the short term with the exception of the planned housing project at 340 Portage. Amortization of commercial office uses w ould occur 10 Packet Pg. 176

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approximately 15 -30 years following plan adoption. It is not known at this time what choices property owners (or local policy makers) may make at the end of the amort ization period. City may pursue purchase of lots to facilitate public open spac e and 100% below - market rate housing, with bond measure or other public financing means.

13. Potential Benefits: Limited community benefits (e.g., park and creek improvements, below market rate housing), impact fees, and inclusionary housing given low levels of development that may result. Public subsidy likely required to generate community amenities. Implementation of the plan is considered long-term.

Summary of Key Issues:

The Council adopted a motion on September 20, 2021, that included direction on 12 it ems for development in the preferred concept plan. This report describes the Council motion and how the motion affects the preferred plan selection. Staff seeks clarification and confirmation of those items, and ultimately Council’s endorsement of the pref erred plan concepts. There are tradeoffs in drafting a plan that has a long -term implementation timeline and limited short - term incentives for development.

Policy Implications:

The draft preferred alternative may require amendments to the Comprehensive P lan to revise land use designations. For example, sites designated for Light Industrial or Research/Office Park, may need to be redesignated to Multi -Family Residential or Mixed Use allow residential uses and prohibit office uses of a certain size.

SB330, codified as Government Code 66300, prohibits zoning changes that would reduce the density of housing in place as of January 1, 2018, without a comparable increase in density elsewhere in the plan area. As proposed, the draft preferred plan proposes decrea sing building heights in some locations, but these are balanced by increasing heights in other locations.

Moveover, the draft preferred plan expands opportunities for residential uses by reducing opportunities for commercial development. Therefore, on the whole, the draft plan is not expected to reduce the intensity of housing in the planning area compared to existing zoning and the requirements under Government Code 66300 are met.

Resource Impact:

The majority of the NVCAP project funding is from the Val ley Transportation Authority (VTA) Priority Development Area grant ($638,000). In compliance with the grant requirement, the 15% local funding match ($112,000) was achieved with the donation of private funds from the Sobrato Organization. The Sobrato Organ ization also donated an additional $138,000 for the environmental review study of the NVCAP. Additional General Funds ($17,700) were used for the historic evaluation by Page & Turnbull and the Matadero Creek analysis by WRA; and 10 Packet Pg. 177

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$62,000 of FY2021 departmen t salary savings was allocated to project management (due to reduced staffing). In 2021, the City was awarded $125,000 from the Local Early Action Planning (LEAP) grant to support the NVCAP.

The funding sources and funds used are listed below:

Funding Sources:

1. Caltrans Grant $638,000

2. 15% Matching Donation $112,000

3. CEQA Private Donation $138,000

4. FY2021 Salary Savings $62,000

5. General Funds $17,700

6. LEAP Grant (2021) $125,000
Total $1,092,700

Funds Used/Allocated

1. Perkins & Will - funded $889,600

2. Perkins & Will - unfunded $367,000

3. WRA – Creek Analysis $89,000

4. Project Management $62,000

5. Page & Turnbull – Historic $13,200

6. Travel and Meetings $15,000

Total $1,435,800

In October 2019, the City Council approved an expanded scope of work for the NVCAP project and contract with the consultant, Perkins & Will. Subsequently, the City Council did not approve the additional funding needed ($367,000) for the expanded contract. As summarized above, the project is underfunded by $343,000. Per the gran t agreement, the City must complete this NVCAP project by December 1, 2023, or risk forfeiting the grant funds. In that scenario, the City would need to repay any grant funds expended towards the project.

The Council’s action to select a preferred alterna tive provides some certainty to the overall completion of the project. The contract with Perkins & Will runs through December 2021, however, it will be extended for six months. During the extension time staff will negotiate new terms with Perkins & Will and come back to the City Council for approval of a revised contract.

Certain milestones were accomplished under -budget or using more staff support than consultant assistance. Through a combination of eliminating some unfunded tasks and shifting budgets within the scope of work, staff has managed to address some of the budget shortfalls.

However, additional funding will be required to complete the project in advance of the grant 10 Packet Pg. 178

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deadline – not including funds needed to support any amortization studies that may be needed.

Staff will return following Council direction with an updated contract with Perkins & Will and a budget request to advance this planning initiative.

Timeline:

After the Council’s confirmation and endorsement of the preferred plan, staff wi ll advise the consultant team to complete additional study and refinement, and undergo technical analysis, including a traffic study. These studies will help support the development of the plan and the environmental analysis for consistency with CEQA. Staf f expects this effort to commence early next year.

Environmental Review:

The current action requested of the City Council does not represent a project under California Environmental Quality Act (CEQA). The City anticipates that either an Addendum or a Supplemental Environmental Impact Report to the Comprehensive Plan Final Environmental Impact Report (2017) will be the appropriate level of environmental review for the approval of the NVCAP. The scope of the preferred plan and its project description wil l define the level of environmental review. CEQA scoping and analysis will begin next year concurrently with the NVCAP development.

Attachments:

Attachment10.a: Attachment A -- Draft Preferred Plan Map (PDF) Attachment10.b: Attachment B -- Draft Preferred Plan Open Space Concept Map (PDF) Attachment10.c: Attachment C -- Council Adopted Goals and Objectives (PDF) 10 Packet Pg. 179

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North Ventura Coordinated Area Plan
Project Goals, Objectives, Milestones and Proposed Boundary February 12, 2018

Proposed NVCAP Goals

1. Housing and Land Use
Add to the City’s supply of multifamily housing, including market rate, affordable, “missing middle,” and senior housing in a walkable, mixed use, transit -accessible neighborhood, with retail and commercial services, open space, and possibly arts and entertainment uses.

2. Transit, Pedestrian and Bicycle Connections
Create and enhance well -defined connections to transit, pedestrian, and bicycle facilities, including connections to the Caltrain st ation, Park Boulevard and El Camino Real.

3. Connected Street Grid
Create a connected street grid, filling in sidewalk gaps and street connections to California Avenue, the Caltrain Station, and El Camino Real where appropriate.

4. Community Facilities and Infrastructure
Carefully align and integrate development of new community facilities and infrastructure with private development, recognizing both the community’s needs and that such investments can increase the cost of housing.

5. Balance of Community Interests
Balance community -wide objectives with the interests of neighborhood residents and minimize displacement of existing residents.

6. Urban Design, Design Guidelines and Neighborhood Fabric Develop human-scale urban design strategies, and design guidelines that strengthen and support the neighborhood fabric. Infill development will respect the scale and character of the surrounding residential neighborhood.

Proposed NVCAP Objectives

1. Data Driven Approach: Employ a data- driven approach that considers community desires, market conditions and forecasts, financial feasibility, existing uses and development patterns, development capacity, traffic and travel patterns, historic/cultural and natural resources, need for community facilities (e.g., schools), and

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other relevant data to inform plan policies.

2. Comprehensive User Friendly Document and Implementation: Create a comprehensive but user-friendly document that identifies the distribution, location and extent of land uses, planning policies, development regulations and design guidelines to enable development and needed infrastructure investments in the project area

3. Guide and Strategy for Staff and Decision Makers: Provide a guide and strategy for staff and decision -makers to bridge the gap between the goals and policies of the Comprehensive Plan and individual development projects in order to streamline future land use and transportation decisions.

4. Meaningful Community Engagement: Enable a process with meaningful opportunities for community engagement, within the defined timeline, and an outcome (the CAP document) that reflects the community’s priorities.

5. Economic Feasibility: A determination of the economic and fiscal feasibility of the plan with specific analysis of market place factors and incentives and disincentives, as well as a c ost-benefit analysis of public infrastructure investments and projected economic benefits to the City and community.

6. Environmental: A plan that is protective of public health and a process that complies with the requirements of the California Environmental Quality Act.

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City of Palo Alto (ID # 13800)
City Council Staff Report

Meeting Date: 1/10/2022

City of Palo Alto Page 1

Title: Review and Accept the FY 2023 - FY 2032 Long Range Financial Forecast (LRFF) and FY 2023 Budget Development Guidelines
From: City Manager
Lead Department: Administrative Services

Recommended Motion
The Finance Committee and staff recommend that the City Council accept the Fiscal Year (FY) 2023 to 2032 General Fund Long Range Financial Forecast (Attachment A) and annual Budget Development Guidelines (Attachment B) and direct staff to use this forecast as the starting point for the initiation of the F Y 2023 budget process.

Executive Summary
The FY 2023 - 2032 Long Range Financial Forecast (LRFF) was reviewed with the Finance Committee on December 7, 2021 (Attachment A) along with the annual Budget Development Guidelines (Attachment B). This report sum marizes the key discussion points with the Finance Committee and includes additional information requested by the Finance Committee to provide context and/or additional data points of reference to the City Council. Per the City Council policies, this item , unanimously approved by the Finance Committee, would be a consent agenda item. However, staff and the Committee have placed this item on the City Council’s action agenda for the full Council deliberation in acknowledgement of the importance for financial planning in the continued varied economic conditions due to the ongoing pandemic.

Discussion
The FY 2023 - 2032 General Fund Long Range Financial Forecast (LRFF) marks the beginning of the FY 2023 annual budget process and provides the projected General Fund financials over the next ten years based on current City Council approved service levels (“Base Case”) as well as alternative financial models.

As of the timing of this LRFF, the local economy is showing positive signs of recovery, and these trends are expected to continue in the coming year. Staff is cautiously optimistic and the onset of the Omicron variant at the time of the development of this forecast continues to demonstrate the variability in the economic recovery. Economists agree, the econom y and recovery activities follow closely the projections and status of the COVID -19 pandemic. This 11 Packet Pg. 184

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forecast assumes that major tax revenues continue to rebound, though it does anticipate that in some instances it may take several years to recover to pre-pandemic levels.

The Base Case forecast projects a surplus of $2.4 million in FY 2023, followed by a $1.0 million shortfall in FY 2024, with small but increasing surpluses in FY 2025 through FY 2032. Critically important this year, as noted by the Finance Committee are two a lternative scenarios that are more closely aligned with City service needs:
• Scenario A) an immediate Restoration of Service to Pre-COVID-19 Service Levels, and • Scenario B) a Competitive Market Compensation Adjustment.

Scenario A would result in a budget shortfall of $11.0 million in FY 2023 and continued shortfalls through 2030. Scenario B would result in a lower surplus of $0.9 million in FY 2023 and a slightly longer period of shortfall through FY 2025. Though the alternative scenari os are modeled separately, it is the intent that elements of one or both scenarios are considered in budget development. As discussed with the Finance Committee, both staff and the committee agree that the most likely scenario is not any of the models in isolation, however likely some combination of the Base Case, Scenario A, and Scenario B will ultimately be the reality of the near-term financial future for the City’s General Fund.

Additionally, a one -time funding surplus was reported in the FY 2021 Annua l Comprehensive Financial Report (ACFR) ( CMR 13501 ), which resulted in Budget Stabilization Reserve (BSR) levels that currently exceed the 18.5 percent funding target by $4.6 million in FY 2022. In addition, this LRFF estimates that FY 2022 could end the year with a surplus of up to approximately $10 million. These one -time funding surpluses have not bee n factored into the 2023-2032 forecast years. The Committee and staff acknowledged the important to recognizing the one-time versus ongoing revenues and costs. This was discussed further during the budget development guidelines which encourages matching one-time sources of funding with one-time uses of funds.

As directed by the City Council, staff will include recommendations for addition of resources and appropriation of funds as part of the FY 2022 Midyear process, scheduled in the first quarter of the new calendar year and expects to provide recommendations for these surplus funds as part of this report

Additional Information Requested by the Finance Committee As part of the Finance Committee’s review of the LRFF, a few requests were made to provide context and/or additional data points of reference. Staff has compiled these items below.

Transfer of Property Ownership: At the December 7, 2021 meeting, the Finance Committee requested additional information relating to the turnover status of properties and impact to overall Property Tax revenues. The table below is provided by the City’s property tax consultant, HdL Coren & Cone, and includes a historical summary of the original assessed value versus the sales price (in millions), by ownership type. This analysis is one of many variables 11 Packet Pg. 185

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used in the development of Property Tax estimates. Of the overall assessed value (AV) growth in FY 2022, approximately two (2) percent of the annual AV growth is attributed to the transfer of property ownership ; this is consistent with recent years.

Single Family Residential Multifamily, Commercial,
Industrial, Vacant TOTALS
Tax
Year
#
Sales
Orig.

Value
Sale
Price
%
Chg
#
Sales
Orig.

Value
Sale
Price
%
Chg
#
Sale
Orig.

Value
Sale
Price
%
Chg
$
Chg
2021 489 $844 $1,620 92% 48 $221 $337 53% 537 $1,065 $1,957 84% $892 Est. Revenue Change: $828
2020 483 $752 $1,511 101% 39 $450 $598 33% 522 $1,202 $2,108 75% $906 Est. Revenue Change: $841
2019 448 $656 $1,396 113% 53 $413 $737 78% 501 $1,069 $2,132 99% $1,063 Est. Revenue Change: $992
2018 494 $705 $1,662 136% 51 $575 $1,065 85% 545 $1,279 $2,727 113% $1,448 Est. Revenue Change: $1,363
2017 537 $737 $1,678 128% 45 $177 $402 127% 582 $914 $2,080 128% $1,166 Est. Revenue Change: $1,100
Each value indicated above (i. e., “Original Value” or “Sales Price” ) is the sum of the full value of all parcel transactions in millions. For example, in 2021, the original value of $844 million increased to $1.6 million once the new sale price was accounted for, a growth of $776 million in assessed value or 92% change.

Inflation: At the December 7, 2021 meeting, the Finance Committee requested additional information pertaining to the impact of inflation on the organization. As a service driven organization, nearly 60 percent of Gener al Fund costs are salaries and benefits. Salaries and benefits are increased each year in accordance with applicable Memorandum of Agreements (MOA’s). In instances where no MOA is in place, the City’s practice is to use a general 2 .0 percent increase. This is consistent with prior Council direction in previous long range financial forecasts to use the 2.0 percent increase as a forecasting assumption, not as a commitment to future negotiations. It is a standard convention used in good times and bad, not a pr ediction of what will happen in the coming few years. As the general cost of living grows, staff are monitoring current contracts with neighboring jurisdictions and seeing upward trends in general wage increases, likely due in-part because of this inflationary period.

Staff has factored in the most recent California Consumer Price Index1 in the San Francisco Bay Area for non-salary expenses in FY 2023. While this assumption assists in aligning expenses with routine increases, it does not account for new c ontracts. As staff address new projects or sunsetting multi-year service contracts, typically a public procurement process is completed for a new contract. Through this public process, these new multi-year agreements may see growth from prior costs at high er rates due to the growing cost of business. For example, on the January 10, 2021 calendar, the City recently completed a procurement process for power washing of City facilities and sidewalks. The lowest bid was over $200,000 above the engineers estimate of approximately $700,000. Staff monitors these and works to offset cost increases to the extent possible, however will continue to identify any gaps as new contracts are entered.

1 State of California Department of industrial Relations. https://www.dir.ca.gov/OPRL/capriceindex.htm 11 Packet Pg. 186

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Inflation is not anticipated to impact the City’s current long -term debt, as these debt structures are financed at fixed rates. Should the City consider financing investments in the future, staff will review the market and adjust the cost of the financing accordingly.

STAKEHOLDER ENGAGEMENT
The preliminary forecast for FY 2023 represents the beginning of the fiscal year 2023 budget development process. As in previous years, the City Council discussion of LRFF will provide guidance to staff in the budget development process. It is anticipated that conversations with City Council and the community will occur through public budget hearings in Spring 2022, according to the standard budget adoption process.

RESOURCE IMPACT
Financial implications from this report and input from the City Council will be considered in the City Manager’s development of the Fiscal Year 2023 budget.

ENVIRONMENTAL IMPACT
This report is not a project for the purposes of the California Environmental Quality Act.

Environmental review is not required.

Attachments:
• Attachment11.a: Attachment A: FY 2023-2032 Long Range Financial Report (LRFF), CMR 13502
• Attachment11.b: Attachment B: FY 2023 Budget Development Guidelines 11 Packet Pg. 187

City of Palo Alto (ID # 13502)
Finance Committee Staff Report

Meeting Date: 12/7/2021

City of Palo Alto Page 1

Title: Review and Recommend That Council Accept the FY 2023 - FY 2032 Long Range Financial Forecast (LRFF) and FY 2023 Budget Development Guidelines
From: City Manager
Lead Department: Administrative Services

RECOMMENDATION
Staff recommends that the Finan ce Committee review and recommend that the City Council accept the General Fund Long Range Financial Forecast (LRFF) for Fiscal Year 2023 -2032 and the FY 2023 annual Budget Development Guiding Principles (Attachment A) and direct staff to use this forecast as the starting point for the initiation of the FY 2023 budget process.

EXECUTIVE SUMMARY
Historically, the City has presented a ten -year General Fund Long Range Financial Forecast (LRFF) in December that marks the beginning of the annual budget process. This preliminary forecast is based on the most current information available, actual revenues for FY 2021, and expected results through FY 2022. General Fund expenditures are based on current City Council approved service levels compared to projected revenues over the next year.

The Base Case Long Range General Fund forecast projects a surplus of $2.4 million in FY 2023, followed by a $1.0 million gap in FY 2024, with small but increasing surpluses in FY 2025 through FY 2032. This forecast maintains cur rent service levels approved in FY 2022 and should be used for planning purposes to assist in gauging effects of major policy interventions against a likely “status quo” version of the future. The level of uncertainty in this forecast is reduced from where it was a year ago, but the City is first and foremost continuing to manage through the unpredictable nature of the pandemic and impacts on the local economy.

In addition to the Base Case Forecast, staff modeled two alternate forecast scenarios that could more closely align with the City’s service needs and financial outcome from the pandemic. The two scenarios are A) an immediate Restoration of Service to Pre -COVID-19 Service Levels, and B) a Competitive Market Compensation Adjustment . These scenarios a re modeled separately for purposes of this report, but impacts from both of these scenarios could happen during the forecast period. Compared to the Base Case, both of these scenarios increase the General Fund gap over the next ten years. In Scenario A, FY 2023 changes from a surplus to a gap of $11 .0 Attachment A - 1
Attachment A

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million, and revenues are not anticipated to be able to fund the annual expenditures until FY 2030. In Scenario B, the surplus in FY 2023 decreases to $0.9 million, the General Fund has a larger gap in FY 2024 of $2.6 million, and the gap continues into FY 2025 ( $1.0 million) before returning to a surplus in FY 2026.

The difficult and significant actions that Council took to reduce services and balance the budget during the pandemic were never meant to be perm anent; however, restoration of impacted services would require deliberate action . As mentioned in the preliminary FY 2022 Q1 financial status report ( CMR 13439 ), there are several issues across the City impacting the ability to transition out of the pandemic including staff turnover, recruitment and retention, and su pply chain issues that could continue into FY 2023. Development of the FY 2023 budget and planning for the subsequent years outlined in the forecast will need to be done strategically over the next several months in order to balance the increased service level needs of the community with the financial resources currently projected.

City staff will continue to review and refine these projections to establish the FY 2023 budget and use this forecast to begin internal planning for budget balancing solutions. Based on this forecast, it is anticipated that the prioritization of spending and consideration of measured restoration of services are necessary to ensure continued financial stability. More detailed guidelines or Budget Policies to inform the development of the FY 2023 budget are discussed at the end of this document (Attachment A).

Looking forward, the City continues to face several pressures from the uncertain recovery from the financial impacts of the COVID -19 pandemic, to funding and completing the 2 014 Council approved Infrastructure Plan projects, and the growing costs of pension benefits and labor costs due to the current labor market and cost of living in the Bay Area. The continued policy direction from the City Council regarding proactively addr essing the pension obligations, including the direction to assume a lower discount rate in calculating pension costs, is contained in the forecast model. The City continues to face critical choices in order to balance short term revenue projections based o n the current economic situation and lingering impacts of COVID -19, with future financial challenges including any unforeseen program needs, any additional proactive funding contributions to pension liabilities, and evaluating service restorations to pre -pandemic levels. The review of this forecast and the planning that follows will be critical since the City is facing many requests and has identified several key programs that the community would like to fund and complete.

Included in this report and subsequent documents are the following:
- Discussion of the current financial climate of the United States to the local economy of the City of Palo Alto
- Current financial forecast including Revenue and Expense assumptions in FY 2023-2032 o Current financial status of the General Fund as of the FY 2022 Adopted Budget, and a brief discussion of revised FY 2022 revenue estimates by category (a more Attachment A - 2
Attachment A

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detailed discussion is in the preliminary 1 st Quarter Financial Status Report CMR #13439)
- FY 2023 Budget Development Policies to inform the Budget process (Attachment A) - Alternate scenarios to the base case forecast to demonstrate financial impact s to the City from:
o Full restoration of services to pre -pandemic levels; reductions in FY 2021 and FY 2022 as a result of the COVID-19 Pandemic, and
o Modeled potential market-based compensation adjustments

BACKGROUND
Annually the Office of Management and B udget produces a ten -year General Fund Long Range Financial Forecast (LRFF). The LRFF reflects staff’s best estimates on the projected revenues and expenditures over the next ten years based on the information that is currently available. It is important to note that the LRFF is a planning document and is separate and distinct from the development of the City’s annual Operating and Capital Budgets. There are assumptions and parameters modeled in the LRFF, but these assumptions are revised and refined as mor e information becomes available through the budget development process.

The LRFF contains a comprehensive review of the costs to provide current City Council approved service levels, including current contracts, updates to salaries and benefits based o n the current population of employees, and the current labor contracts in effect. Important to note in this LRFF is the ongoing budget adjustments that were approved in the FY 2022 Adopted Budget and in the FY 2022 Q1 Preliminary Financial Status Report ( CMR 13439). The LRFF also reviews the status of the current eco nomy and various economically sensitive revenues such as Sales Tax, Documentary Transfer Tax, Property Tax, and Transient Occupancy Tax to explain key trends in those areas. This Forecast allows staff and City Council to look at both the short-term and long-term financial status of current service levels in the General Fund to inform daily policy decisions and evaluate long-term goals and ongoing challenges.

Palo Alto serves a diverse community with a broad range of unique services that adds to the significant complexity of managing a balanced budget and healthy financial outlook. The demands and conflicts coupled with an economy that is recovering with some uncertainty after the COVID-19 pandemic have heightened the intensity of the financial forecasting a nd budget development processes. New analyses and data generation demands require deep -dives into complex problem-solving within an engaged public process across a wide range of issues. These forecast figures present staff with the challenge of prioritizin g the growing needs of the City with the fiscal sustainability of these needs.

The Economy
National, state, regional and local economic indicators are mixed, while the national economy performance is strong it has cooled as summer ends. The local economy on the other hand had strong performance in the second and third (calendar) quarters of 2021 with the expectation this will continue into calendar year 2022 and beyond, albeit at a slower growth rate, as Attachment A - 3
Attachment A

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progress on vaccinations allow economic activity to resume and/or expand particularly in previously shut -down sectors like restaurants, hotels, entertainment, and travel. Increased spending of household pandemic -era savings due to pent -up demand for services created by the pandemic restrictions could result in stronger economic growth as the pandemic restrictions further wane. However, increased spending on services may slow spending on durable goods which has increased and added to the strain to the supply chain. Business investments continue to be robust, particularly in information processing equipment and software. Overall housing construction remains strong, but it is expected to gradually decline since building is outpacing population growth and demand. This is expected to a lesser degree in high demand and densely populated areas like the San Francisco Bay Area. With the recent passage of the bipartisan infrastructure bill in Congress, the concern about the impact of the Federal stimulus packages ending, that contributed to the positive economic indicators over the past year, has lessened though there remains uncertainty about the infrastructure spending timing in the short-term.

As of the printing of this report, the rising vaccination rate, declining hospitalizations, and slowing of the spread of the virus in California and particularly in the Bay Area bodes well for Palo Alto’s economic recovery. On a national level, areas of the country that are slower to address the pandemic might cause a slower national economic recovery in calendar year 2022.

Another impediment to growth, both nationally and locally, is the labor market contraction. The pre-pandemic employment declined by about 10 million nationally, and businesses of all types are impacted by labor shortages. Employment remains down by millions over the pre-pandemic level even with the population growing over the past year. Some of this is explained by lack of childcare preventing a parent from re -entering the labor force, health concern especially those at higher risk and/or cannot be vaccinated d ue to a high risk of complications, and the long known and expected baby boomers' retirement trend that the pandemic is thought to have accelerated. This has created the conditions for companies to offer higher wages and/or benefits to both skilled and low er-skilled workers to attract and retain them. However, issues like the labor shortages, supply chain challenges, and rising gas and oil prices are stoking inflationary pressures which could, if unchecked, dampen economic growth. The Federal Open Market Co mmittee (FOMC), whose actions during the pandemic kept the financial markets liquid and operating, is carefully monitoring the economy and has already taken steps to address the rising inflation, although the ability to keep this in an acceptable range is uncertain.

According to the US Bureau of Economic Analysis (BEA), the “advance” estimate of the U.S. economy’s national gross domestic product (GDP) percentage change from the preceding quarter grew in the second and third (calendar) quarters by 6.7 perce nt and 2 percent, respectively. According to the BEA, “the increase in real GDP in the third quarter reflected increases in private inventory investment, personal consumption expenditures (PCE), state and local government spending, and nonresidential fixed investment that were partly offset by decreases in residential fixed investment, federal government spending, and exports. Imports, which are a subtraction in the calculation of GDP, increased (see below Table 1). The increase in third quarter GDP perform ance reflected the continued economic impact of the COVID -19 Attachment A - 4
Attachment A

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pandemic. A resurgence of COVID -19 cases resulted in new restrictions and delays in the reopening of establishments in some parts of the country. Government assistance payments in the form of for givable loans to businesses, grants to state and local governments, and social benefits to households all decreased. The national consumer price index (CPI), as of the third calendar quarter has grown 5.3 percent and exceeds smaller increases in first and second quarters of 1.9 percent and 4.8 percent. More households could see their finances as worse if inflation erodes their nominal wage gains and shrinks their real purchasing power. The recent inflation spike has driven pandemic pessimism, but it’s not c lear if this will lead into reduced retail spending. The following graphs depict the GDP and consumer price index (CPI) over the past few years and CPI forecast in calendar year 2022.

Table 1: National Gross Domestic Product (GDP)

Table 2: National Consumer Price Index

Attachment A - 5
Attachment A

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The nation’s unemployment rate fell to 5.1 percent in the third quarter, compared to a record high of 13.1 percent at the height of the pandemic in the second (calendar) quarter of 2020. It is expected, by the U.S. Bureau of Labor St atistics, that the unemployment rate will decline below the pre -pandemic low of 3.5 percent. Per the State of California's Employment Development Department, the state’s unemployment rate as of September 2021 is 6.4 percent and the County of Santa Clara is 3.9 percent. Nationally, the improved unemployment rates are driven by job gains in the leisure and hospitality; trade, transportation and utilities; professional and business services; education and health services; manufacturing, and construction. As shown in Table 2, these trends are expected to continue in calendar year 2022. Historically, the Bay Area job growth has been led by the Peninsula for the past several years. The unemployment rate for the San Francisco Peninsula improved to 4.7 percent in Se ptember 2021 compared to 9.0 percent in September 2020.

Table 3: U.S. Unemployment Rate
Attachment A - 6
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DISCUSSION
Included in this section are the Base Case and revenue and expense assumptions. As with all forecasts, there is uncertainty regarding the revenue and e xpenditure estimates contained in this document. For example, General Fund revenues may exceed or fall below expectations based on changes in economic or non-economic conditions. Various cost elements can also vary from year to year. Adding to this complex ity is the uncertain recovery from the financial impacts of the COVID -19 pandemic. This forecast assumes a gradual improvement of economic conditions and the continued easing of public health restrictions. In this forecast major tax revenues continue to re bound from prior year levels, reserves for economically sensitive revenues are phased out as modified or canceled programs return, and investments in Capital projects are restored to pre -pandemic levels. It also recognizes legislative responses to the pandemic that have boosted the City’s financial outlook in the near term, such as the Coronavirus Aid, Relief, and Economic Securities Act (CARES Act), and American Rescue Plan Act (ARPA). As one-time sources, these funds are eliminated in FY 2024.

Base Case
The following table displays the projected General Fund revenues and expenditures over ten years and the cumulative net operating margin. The operating margin reflects the variance between the projected General Fund revenues and expenditures for each year of the forecast or the annual surplus or shortfall. The net operating margin is presented on a one -time basis, as the annual surplus or shortfall for a given year, and on an incremental basis. The incremental forecast assumes that each shortfall is address ed completely with ongoing solutions in the year Attachment A - 7
Attachment A

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it appears and that each surplus is completely expended with ongoing expenditures. Because it is the City’s goal to remain in balance on an ongoing basis, the incremental figure is useful to illustrate the a dditional surplus and/or shortfall attributed to a particular fiscal year. To the extent that a shortfall is not resolved, or a surplus is not expended on an ongoing basis, it is important to understand that the remaining budget gap or surplus will carry o ver to the following year.

The current Base Case financial forecast projects a surplus of $2.4 million in FY 2023, followed by a $1.0 million shortfall in FY 2024, with small but increasing surpluses in FY 2025 through FY 2032. As outlined above, if the C ity spends the projected FY 2023 surplus of $2.4 million on an ongoing basis, the available projected gap for FY 2024 will be approximately $3.4 million. Based on these assumptions, the cumulative net operating margin, or ongoing surplus, during the forecast period is $34.3 million.

TABLE 4: FY 2023 – 2032 Long Range Financial Forecast (Base Case)

TABLE 5: FY 2023 – 2032 Long Range Financial Forecast Net Operating Margin (Base Case)

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Revenue Assumptions
On October 25, 2021, the City Council revie wed and discussed the preliminary Q1 FY 2022 financial status report ( CMR 13439 ). This report provided a snapshot in time, with some revenues projected to exceed the FY 2022 Adopted Budget estimates that reflected a slow to moderate recovery pace as directed by the City Council (CMR 11954).

Tax revenues constitute nearly 60 percent of General Fund resources and the FY 2022 forecast projects a 10.5 percent, or $11. 6 million, increase over adopted levels that is driven by higher than anticipated receipts in Sales Tax, Property Tax, and Transient Occupancy Tax (TOT) categories. In FY 2023, the forecast projects a $9.1 million, or 7.5 percent, tax revenue increase compared to the FY 2022 projected levels. The forecast assumes that major tax revenues continue to rebound from prior -year levels; however, overall tax revenues in FY 2022 remain below pre-pandemic levels by $12.3 million, or 9.1 percent, and are not expected to reach pre- pandemic levels until FY 2024 in this LRFF.

The FY 2022 forecast for non -tax revenues projects a slight 0.2 percent, or $112,000 increase over adopted levels. In FY 2023, the forecast projects a $3.6 million, or 5.0 percent, increase compared to FY 2022 projected levels. This increase is primarily attributable to new fee -based programs in the Fire Department and the restoration of several programs and services that were modified due to public health orders, mainly in public safety and community services.

As part of the Federal stimulus support, the City is expected to receive $13.7 million in American Rescue Plan Act (ARPA) funding that the Council, per the legislation, has designated to address the immediate financial impacts resulting from the COVID-19 pandemic, specifically the significant revenue loss. Budgetarily, and included in this forecast, is the assumed use of $8.2 million (60 percent) appropriated in FY 2022 and $5.5 million (40 percent) appropriated in FY 2023 to assist in smooth ing the revenue loss as a result of the pandemic. As a one -time funding source, ARPA funding is eliminated in FY 2024 and beyond which contributes to the fluctuations in the surplus/operating gap in the first few years of the 10 -year forecast. The changes by revenue category, as well as the current expected FY 2022 status of many of the revenue categories, are discussed in greater detail below.

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TABLE 6: General Fund Revenue Forecast

TABLE 7: General Fund Revenue Forecast Year to Year Percentage Change

Sales Tax
Sales tax receipts declined in FY 2020 and FY 2021 by 16.3 percent and 4.70 percent, respectively. However, the FY 2021 fourth quarter cash receipts increased by 28.2 percent over the prior year’s same quarter. The general retail, food products which includes restaurants, and transportation which includes auto sales had significant increases. This economic trend also occurred in municipalities in the San Francisco Bay Area and in California. These significant upward trends were partially offset by business-to-business sales which has been declining.

Sales Tax is anticipated to generate $30.6 million in FY 2022, a $2.5 million or 8.7 percent increase over the adopted level of $28.2 million, and $1.5 million or 5.2 percent over FY 2021 actuals of $29.1 million. In FY 2023, this revenue is anticipated to increase to $32.3 million, a $1.7 million or 5.2 percent increase over FY 2022 projected levels. Revenue in this category is experiencing growth; however, remains below pre-pandemic levels of $36.5 million in FY 2019.

TABLE 8: City of Palo Alto Sales Tax Revenues through FY 2032 Attachment A - 10
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Property Tax
Property tax revenue is the General Fund’s largest revenue source and represents approximately 25 percent of the total revenues. Historically, the 10 -year compound annual growth rate (CAGR) was 8.2 percent with a low of –1.1 percent in FY 2011 and a high of 11.5 percent in FY 2015. During economic downturns, impacts to property tax occur a year later. As a result, the FY 2021 actual growth was 10.7 percent and FY 2022 is forecasted to be flat. In addition, fiscal years 2018, 2019, 2020, and 2021 included receipts of $1.4 million, $2.7 million, $3.9 million, and $5.5 million, respectively, for excess Educational Revenue Augmentation Fund (ERAF) distributions from the County of Santa Clara. The FY 2022 forecast includes $4.5 million for excess ERAF. ERAF is the fund used to collect and disburse property taxes that are shifted to/from cities, the County, and special districts prior to their reallocation to K -14 school agencies. When the state shifts more local property tax than required to support schools these funds are returned and known as excess ERAF. As a result of the volatility of ERAF, it is not considered a permanent local revenue source.

As discussed in the preliminary first quarter (Q1) FY 2022 financial status report ( CMR 13439) , five counties including, Santa Clara County, and the State were in a dispute over the calculation and disbursement of excess ERAF funds. The City had been reserving these funds, pending a resolution of the dispute beginning in FY 20 21 and through prior near -term forecasts. The dispute between the counties and the State was settled in FY 2021 and, consistent with City Council direction, these funds have been recognized in the Budget Stabilization Reserve (BSR) and reallocated to the C ity’s reserve: Utilities Transfer Litigation (Equity Transfer). In FY 2022, an additional $1.7 - $2.0 million above budgeted levels is anticipated as a result of the favorable resolution.

In November 2021, the County of Santa Clara notified the cities th at the California School Boards Association and its Education Legal Alliance filed a lawsuit against the Controller of the State of California arguing that the settlement reached with the counties is unlawful. The County estimates that 20 percent of ERAF i n FY 2022 is subject to this litigation. This forecast assumes a slightly higher 25 percent or $1.5 million reserve for potential loss starting in FY 2022 Attachment A - 11
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and beyond. It’s uncertain if a similar percentage is at risk for the prior two years; staff will continue to monitor the status of this dispute and report on any significant developments.

Transfer of ownership has been a significant driver of past growth; however, that growth is expected to moderate in FY 2022 due to the delayed impact of the (pandemic ) recession. For example, the median sales price of single family residential in the first quarter of FY 2022 declined by 2.6 percent.

TABLE 9: City of Palo Alto Property Tax Actuals and Forecast through FY 2032

Property Tax is anticipated to generate $56.5 million in FY 2022, a $5.2 million or 10.2 percent increase over adopted levels of $51.2 million and remains consistent with FY 2021 actuals of $56.6 million. In FY 2023, this revenue is anticipated to increase to $58.2 million, a $1.7 million or 5.2 percent increase over FY 2022 projected levels.

Transient Occupancy Tax (TOT)
Revenue in this category is impacted by business and other leisure/non -leisure travel and has experienced significant reductions in prior years due to public health orders, t ravel restrictions, and diminishing business and personal travel plans resulting from the pandemic. As public health conditions improve and travel resumes, revenue in this category is anticipated to recover and possibly grow. This revenue remains low compa red to pre -pandemic actuals of $25.7 million in FY 2019; however, strong growth was realized in the FY 2021 fourth and FY 2022 first quarters. In FY 2022, receipts are expected to generate approximately $11.1 million (57 percent below pre-pandemic levels) versus the FY 2021 actuals of $5.2 million (80 percent below pre - pandemic levels); a 23 percent improvement. The opening of the two Marriott hotels in the prior fiscal year and the re -opening of several hotels in the first quarter of FY 2022 are positive developments that will also drive recovery for this tax revenue.

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Estimated TOT receipts of $11.1 million in FY 2022, would generate a $2.7 million or 32.1 percent increase over adopted levels of $8.4 million, and $4.9 million or 113.5 percent over FY 2021 actuals of $5.2 million. In FY 2023, this revenue is anticipated to increase to $16.9 million, a $5.8 million or 52.3 percent increase over FY 2022 projected levels. Year -to-date, daily average room rates increased by 37.7 percent from $120.76 per day to $166.24 per day while occupancy rate increased by 40.4 percent from 43.2 percent to 60.6 percent.

TABLE 10: City of Palo Alto Transient Occupancy Tax Actuals and Forecast through FY 2032 Note: Jan. 2008, TOT Rate went from 10% to 12%
Jan. 2015, TOT Rate went from 12% to 14%
April 2019, TOT Rate went from 14% to 15.5%

Utility User’s Tax (UUT)
The UUT is levied on electric, gas, and water consumption, as well as on telephone usage.

Revenue in this category is impacted by consumption levels and h as experienced reductions in prior periods due to water reduction programs and reduced workforces and business closures due to the pandemic. This revenue is showing early signs of recovery as public health orders ease and workers return to the office. UUT is anticipated to generate $14.7 million in FY 2022, a $0.3 million or 2.1 percent increase over adopted levels of $14.4 million, relatively constant with FY 2021 levels. In FY 2023, this revenue is anticipated to increase to $14.9 million, a $0.2 million or 1.6 percent increase over FY 2022 projected levels.

TABLE 11: City of Palo Alto Utility Users Tax Actuals and Forecast through FY 2032 Attachment A - 13
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Documentary Transfer Tax (DTT)
Revenue in this category is highly volatile and dependent on sales volume and the mix of commercial and residential sales. In FY 2021, DTT experienced record receipts of $10.6 million.

This milestone was a result of six large commercial transactions and robust residential sales.

During economic downturns, some investors see it as an opp ortunity to expand their holdings.

Revenue from July through October in FY 2021 is running 4.4 percent above the same period in FY 2020. DTT is anticipated to generate $8.1 million in FY 2022, a $1.0 million or 13.8 percent increase over adopted levels of $7.1 million, and $2.5 million or 23.5 percent lower than FY 2021 actuals of $10.6 million. In FY 2023, this revenue is anticipated to decrease to $7.4 million, a $0.7 million or 9.9 percent decrease over FY 2022 projected levels.

As in past years, this revenue source is challenging to forecast and can fluctuate month to month depending on real estate transactions. The number of transactions through October 2021 (283) are running higher than those through October 2020 (229) with the total value of these transactions increasing by 4.4 percent. However, though performance to date is higher than the FY 2021 peak revenue receipts, the FY 2021 DDT receipts is not expected to be repeated in FY 2022 since the major commercial sales receipts, which made up over h alf the DDT receipts in FY 2021, came in the latter half of the last fiscal year. Though the Palo Alto housing market remains strong, as discussed in the Property Taxes section, single family residential median sales price in Palo Alto has slightly declined, which is an expected occurrence as the recession will impact property sales activity in FY 2022.

TABLE 12: City of Palo Alto Documentary Transfer Tax Actuals and Forecast through FY 2032 Attachment A - 14
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Rental Income
Rental Income of $14.5 million in FY 2022 pri marily reflects rent paid to the General Fund from the City’s Enterprise Funds and the Cubberley Community Center. Th ere is a slight increase in rental income 23of $1.0 million. The increase can be attributed to a review of the changes in the California Co nsumer Price Index (CCPI) in the San Francisco Bay Area from the August -to- August period, and it is expected that revenues will be reviewed and revised subsequent to this forecast based on updated information, typically the December to December change in t he CCPI. This also assumes rentals of City space return to pre -pandemic levels in FY 2023. Impacts from the pandemic, including reductions related to the rent forgiveness program ( CMR 12234) which provides up to three months of rent forgiveness for active non -profit tenants should be resolved in FY 2022. As of November 1, 2021, the program has resulted in 12 tenant applications for $255,000 of the $744,000 budgeted for rent relief. A further round of applications will occur prior to the program’s sunset at the end of FY 2022. Additionally, staff are working with several tenants to resolve issues of past due rent, and the City Attorney’s Office has become involved in ongoing discussions. It is assumed this revenue source will decrease during FY 2022 until past due rent issues are resolved.

The City is also considering using the former Los Altos Treatment Plant (LATP) site for Project Homekey and a water purification site. Should this occur, the site would no longer be available for rental as a laydown yard. Please see the General Expenses section of this report for additional information regarding future plans for the former LATP site.

Charges for Services and Permits and Licenses
Revenues in the ‘Charges for Services’ and the ‘Permits and Licenses’ categories are anticipated to be $28.4 million and $9.5 million, respectively, in Fiscal Year 2023. These amounts are approximately $5.6 million higher than the FY 2022 amounts, mainly due to adjustments to revenue from new Fire Department fees and adjustments to the Economically Sensitive Department Revenue Reserve, discussed below.

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Revenues in these categories were imp acted by changes in FY 2023, such as increases to reflect a full year of operation for the Junior Museum and Zoo, which includes a ticketed entry fee and membership program. These budget categories also include revenues associated with two fee - based progra ms in the Fire Department: a first responder fee (assessed on commercial insurance companies), to cover the cost for initial response for first due engine; and an ambulance subscription fee, to secure co -pay free ambulance transport. These fees are still i n development and are currently scheduled for implementation by Spring or Summer of 2022.

Additionally, revenues in these categories were impacted by a phase -out of the Economically Sensitive Department Revenue Reserve. This reserve was established to mit igate unexpected losses from services impacted by the COVID -19 pandemic, such as the suspension of parking enforcement, delays opening the Junior Museum and Zoo, and limited operations at community centers, recreational facilities, and the Children's Theat re. In total, $5.0 million was set aside for this purpose in the prior year. This forecast assumes gradual overall improvements in the return of canceled or modified services by phasing out this reserve over three years, appropriating $2.5 million in FY 2023, $1.25 million in FY 2024, and $0 in FY 2025 and beyond.

The revenue estimates in these categories are primarily driven by the cost of staff to provide services to the community; therefore, revenues are impacted by the City’s personnel service costs an d modeled to increase by rates consistent with general salary and benefits and CPI trends. One exception to this is for Development Services activities and related revenue.

Development Services fees are fully cost -recoverable and the department has been mo deled as cost-neutral in this forecast. Staff will analyze municipal fee revenue activity as part of the FY 2023 Budget development process and bring forward adjustments as appropriate.

Charges for Service - Stanford Fire and Dispatch Services The City an d Stanford have two separate agreements for the provision of fire response and emergency dispatch services. The fire response services agreement became effective in July 2018 and outlines service level terms and a new cost allocation methodology as the baseline for agreement costs. The term extends through June 2023, with renewals through 2028 unless otherwise terminated. The agreement included a new staffing deployment model for suppression and medical services, which was approved by the City Council in Oc tober 2017 and deployed in January 2018. This forecast aligns with the new staffing model and, in accordance with the agreement, adjustments to revenue from Stanford have been aligned with the year - over-year changes to the operating expenses in the Fire De partment for FY 2022. Similarly, changes to the revenue received for dispatching services have been aligned with the FY 2022 adjustments to the operating expenses in the Technical Services Division of the Police Department where the costs to provide these services are budgeted. Adjustments include applicable costs for the Public Safety Communications Manager position approved as part of FY 2022 preliminary first quarter adjustments. For fire revenue, additional adjustments may be applicable if a new labor a greement with IAFF is negotiated. Salary and benefits cost increases are assumed using the CCPI in the San Francisco Bay Area from the August -to-August period of

3.7% for the base year and 2.5% for out years.

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Charges to Other Funds
The main source of revenues in this category is General Fund administrative cost allocation plan charges to the Enterprise and Internal Service Funds. Internal support departments such as Administrative Services, Human Resources, and Council Appointed Offices provide services to Enterprise and Internal Service Funds. The costs for these services are recovered through the administrative cost allocation plan charges. The FY 2023 estimate for Charges to Other Funds of $13.0 million reflects a slight decrease of 8.45 percent from the FY 2022 Adopted amount of $14.2 million; this is primarily attributed to fully adjusting the costs associated with the allocated charges in the Internal Support Departments to the adjustments made as part of the FY 2022 Budget as well as a technical adjus tment to better align the cost plan methodology with the system calculations.

Return on Investment
The return -on-investment category reflects the interest earnings on the City’s investment portfolio. This category is a combination of past investments, new investments at current market rates, and available investable cash which fluctuates seasonally and annually. Staff had anticipated the decline in interest rates would occur sooner and at a faster rate than it has occurred, so the City experienced a higher than anticipated return on investments in FY 2021.

In addition, prudent investments further resulted in higher investment yields and earnings.

The average portfolio rate of return for the first quarter of FY 2022 was 1.61 percent, and a 1.58 percent average yield as of the fourth quarter of FY 2021. The revised General Fund FY 2022 interest earning estimate of $0.95 million is $0.10 million higher than the Adopted Budget of $0.85 million. In FY 2023, the forecast reflects a relatively level interest rat e environment with slight increases through the ten-year period.

TABLE 13: Palo Alto Historical Investment Portfolio Yield and Citywide Interest Earnings Attachment A - 17
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Operating Transfers-in
Operating Transfers -in materialize as expenses in other funds throughout the City and as a revenue in the General Fund. This budget category includes repayment of a previous loan from the General Fund to the Airport Fund, funding for police patrol in the downtown area, and the equity transfer from the Electric and Gas funds. Ov erall, the Operating Transfers -in are estimated to be $22.6 million, a $0.5 million decrease from the FY 2022 level of $23.1 million due to the removal of a one-time transfer of funding for animal services in FY 2022.

In accordance with a methodology app roved by the City Council in June 2009, the equity transfer is calculated by applying a rate of return on the capital asset base of the Electric and Gas funds. This rate of return is based on PG&E's rate of return on equity as approved by the California Pu blic Utilities Commission (CPUC). The transfer amount is calculated based on the Utility Department’s projections from the Electric and Gas Five Year Financial Forecasts, as approved by the City Council in spring 2021 (CMR 12240). For more detail on the ordinance adopting the 2009 transfer methodology, see CMR 280:09, Budget Adoption Ordinance for Fiscal Years 2009 a nd 2010; and CMR 260:09, Finance Committee Report explaining proposed changes to equity transfer methodology.

This estimate also considers the trial court’s decision in Green v. City of Palo Alto (Santa Clara Superior Court Case No. 16CV300760), a class action lawsuit which challenges the City’s gas and electric rates under Proposition 26, one of many such cases following a 2015 decision involving the City of Redding. In Green, the trial court judge found the City’s electric rates valid, but that the Cit y’s gas rates were taxes requiring voter approval under California’s Proposition 26, Attachment A - 18
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because they were set at a level sufficient to fund an annual transfer to the City’s general fund.

The results of this lawsuit will have important implications for Palo A lto, as well as for other municipal utilities and cities in California. In September 2021, the Council therefore authorized an appeal to seek guidance from the Court of Appeal on these novel legal questions. The City is also exploring a ballot measure to seek voter approval or modification of the City’s general fund transfer so City voters can have the final word on how they want to finance City services, and at what level. Because the appeal is pending, the exact exposure to the City’s General Fund cannot be estimated at this time. However, the City believes it is prudent to set aside funding to cover the $12.6 million remedy related to gas rates that the Superior Court identified in Phase II, plus interest, as well as the estimated future reduction in the gas equity transfer, should the current Santa Clara County Superior Court decision be upheld. While the process for calculating the equity transfer from the Electric and Gas Funds has not changed, the funding is now being held in a Litigation Reserve. Thi s action continues the City’s proactive actions to address known liabilities with the best information available at the time and sets these funds aside pending final resolution of this dispute.

Expense Assumptions
As part of developing the FY 2023 -2032 F orecast expenditure budget, the General Fund expense categories have been adjusted by removing FY 2022 Adopted Budget one -time expenses and updating major cost elements such as salary and benefits costs. The table below displays the expense forecast and wh en compared to the FY 2022 estimated expenditures, growth of 9.9 percent is expected in FY 2023.

TABLE 14: General Fund Expense Forecast and Year to Year Percentage Change Expenditures & Other Uses
Actual
2021
Adopted
2022
Projected
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
CAGR 10
Years
CAGR 5
Years
Salary 67,284 69,304 66,304 72,531 74,791 76,699 78,718 80,554 82,274 83,986 85,698 87,411 89,125 2.5% 1.1% Benefits 58,509 62,245 63,745 66,247 68,738 71,045 71,867 72,088 73,581 74,650 76,004 77,392 76,430 2.1% 0.8% Subtotal: Salary & Benefits 125,793 131,549 130,049 138,778 143,529 147,744 150,584 152,641 155,855 158,636 161,701 164,803 165,554 2.3% 1.0% Contract Services 17,807 30,200 30,200 29,088 29,756 30,417 28,107 28,631 29,185 29,710 30,284 30,796 31,378 0.4% -0.2% Supplies & Material 2,234 2,980 2,980 3,085 3,160 3,234 3,308 3,382 3,456 3,530 3,604 3,678 3,752 2.3% 0.9% General Expense 6,585 7,938 7,938 8,481 8,548 8,631 8,684 8,752 8,821 8,904 7,959 8,026 8,093 0.2% 0.3% Rents & Leases 1,709 1,298 1,298 1,332 1,367 1,404 1,442 1,481 1,522 1,563 1,605 1,649 1,693 2.7% 1.1% Facilities & Equipment 464 427 427 443 454 465 476 487 498 509 520 531 542 2.4% 1.0% Allocated Charges 17,423 20,117 20,117 22,445 23,105 23,729 24,275 24,818 25,417 26,040 26,630 27,250 27,780 3.3% 1.0% Total Non Sal/Ben Before Transfers 46,221 62,960 62,960 64,875 66,391 67,880 66,292 67,551 68,899 70,255 70,602 71,929 73,238 1.5% 0.4% Operating Transfers-Out 4,326 4,296 4,296 4,431 4,462 4,493 4,529 4,561 4,598 4,636 4,669 4,707 4,746 1.0% 0.3% Transfer to Infrastructure - Base 6,911 4,506 4,506 10,673 13,640 16,607 19,575 20,010 20,456 20,912 21,381 21,863 22,356 17.4% 6.5% Transfer to Infrastructure - TOT 2,383 5,899 5,657 9,238 12,719 14,966 15,456 15,927 16,536 17,222 18,061 18,969 19,961 13.0% 5.6% Total Use of Funds 185,634 209,210 207,468 227,995 240,741 251,691 256,437 260,691 266,344 271,661 276,414 282,271 285,855 3.2% 1.3% Expenditures & Other Uses
Actual
2021
Adopted
2022
Projected
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Salary 3.0% -4.3% 9.4% 3.1% 2.6% 2.6% 2.3% 2.1% 2.1% 2.0% 2.0% 2.0% Benefits 6.4% 2.4% 3.9% 3.8% 3.4% 1.2% 0.3% 2.1% 1.5% 1.8% 1.8% -1.2% Subtotal: Salary & Benefits -0.2% -0.2% 6.7% 3.4% 2.9% 1.9% 1.4% 2.1% 1.8% 1.9% 1.9% 0.5% Contract Services 69.6% 0.0% -3.7% 2.3% 2.2% -7.6% 1.9% 1.9% 1.8% 1.9% 1.7% 1.9% Supplies & Material 33.4% 0.0% 3.5% 2.4% 2.3% 2.3% 2.2% 2.2% 2.1% 2.1% 2.1% 2.0% General Expense 20.6% 0.0% 6.8% 0.8% 1.0% 0.6% 0.8% 0.8% 0.9% -10.6% 0.8% 0.8% Rents & Leases -24.1% 0.0% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% Facilities & Equipment -8.0% 0.0% 3.7% 2.5% 2.4% 2.4% 2.3% 2.3% 2.2% 2.2% 2.1% 2.1% Allocated Charges 15.5% 0.0% 11.6% 2.9% 2.7% 2.3% 2.2% 2.4% 2.4% 2.3% 2.3% 1.9% Total Non Sal/Ben Before Transfers 3.1% 3.1% 3.0% 2.3% 2.2% -2.3% 1.9% 2.0% 2.0% 0.5% 1.9% 1.8% Operating Transfers-Out -0.7% 0.0% 3.1% 0.7% 0.7% 0.8% 0.7% 0.8% 0.8% 0.7% 0.8% 0.8% Transfer to Infrastructure - Base -34.8% 0.0% 136.8% 27.8% 21.8% 17.9% 2.2% 2.2% 2.2% 2.2% 2.3% 2.3% Transfer to Infrastructure - TOT 147.6% -4.1% 63.3% 37.7% 17.7% 3.3% 3.0% 3.8% 4.1% 4.9% 5.0% 5.2% Total Use of Funds 12.7% -0.8% 9.9% 5.6% 4.5% 1.9% 1.7% 2.2% 2.0% 1.7% 2.1% 1.3%

Attachment A - 19
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FY 2022 Preliminary First Quarter Adjustments
On October 25, 2021 the City C ouncil received preliminary information on the City’s financial condition as of the first quarter (Q1) of FY 2022. That report indicated a gradual improvement in the local economic outlook, similar to national trends. During that meeting, Council also approved several budgetary and staffing adjustments to realign resources with priorities identified by the City Council after the FY 2022 Adopted Budget (CMR 13439). Ongoing adjustments from FY 2022 Q1 are part of this forecast, including the addition of econo mic development coordination and management staffing (1.00 FTE Assistant to the City Manager) housing support operations program staffing (1.00 FTE Assistant to the City Manager ), Development Center front desk staffing (1.00 FTE Administrative Associate II I), and the restoration of the Public Safety Communications Manager (1.00 FTE). The City Council also expressed interest in staff bringing forward an additional action in FY 2022 to add a Code Enforcement Officer (1.00 FTE, approximately $170,000 including staffing and vehicle costs) to support enforcement of the ban on gas powered leaf blowers and address the backlog of code enforcement requests. Various one-time adjustments were also approved, which are detailed in CMR 13439. These one -time adjustments are contemplated in this forecast in that they impact the FY 2023 estimated beginning balance of the Budget Stabilization Reserve (BSR).

In addition to these actions, Council also approved the acceptance and appropriation of a Staffing for Adequate Fire Em ergency Response (SAFER) Grant to reimburse the City for an additional 5.0 FTE Firefighter positions for three years ( CMR 13643). These positions have been assumed in this forecast along with the ongoing costs associated with the positions once the grant funding ends in FY 2025.

Salary and Benefits
The table above depicts the estimated General Fund salaries and benefits costs. Consistent with prior years, the FY 2023 salaries and benefits costs represent approximately 60 percent of the General Fund budget expenditures.

Salary and Benefits are projected to increase $7.2 million or 5 .2 percent from the prior year, from $131.5 million to $138.8 million. Discussed in the following sections, this is primarily attributable to increases in salaries ($3.2 million or 4.7 percent) and pension costs ($2.7 million or 7.8 percent).

Salary
Consistent with the City’s salary budget methodology for recent budgets, positions are budgeted at the actual rate of pay of employees including benefit selections as of Fall 2021.

Then, by position, salary costs are updated in accordance with applicable Memor andum of Agreements (MOA’s) between the City and its labor groups and the Management and Professional Personnel and Council Appointees Compensation Plan(s). It is important to note that as of this forecast, all bargaining groups are at the end of their agr eement terms. The forecast assumes step increases for employees in applicable positions, including SEIU, IAFF, and PAPOA, and merit increases for Management and Professional employees. A general wage Attachment A - 20
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adjustment of 2.0 percent is included for all employees and all years of the forecast since no MOA’s are in effect. This is consistent with prior Council direction in previous long range financial forecasts to use the 2.0 percent increase as a forecasting assumption, not as a commitment to future negotiations.

Benefits
Pension: Pensions are budgeted based on CalPERS determined rates as of the June 30, 2020 valuation (CMR 13440) for the City’s Miscellaneous and Safety plans. CalPERS determines the City’s total contributions for a given Fiscal Year as the sum of two factors: Normal Cost (NC) and Unfunded Accrued Liability (UAL). Together the NC and the UAL expressed as a percentage of payroll is the ‘blended rate’ and is used to represent total costs in the discussion below.

The Normal Cost (NC) is expressed as a percentage of payroll and is paid as part of the payroll reporting process of activ e employees. Commonly referred to as the ‘pay -go’ cost, the NC is variable and increases or decreases directly with the salary levels of the City. It represents the necessary funding for the City to pay for employees presuming that CalPERS meets the curren t set of assumptions.

In a year that CalPERS does not meet assumptions, due to plan changes, assumption changes, method changes, or plan experience (including investment gains/losses), there is an increase or decrease to the Unfunded Accrued Liability (U AL). Commonly referred to as the ‘catch -up’ cost, the UAL is expressed as a dollar amount and is calculated over an amortized period with defined annual payments, similar to a mortgage. The contributions for UAL are billed as a flat dollar amount as oppose d to a percentage of payroll due to potential funding issues that could arise from a declining payroll or number of active members in the plan. However, CalPERS provides an estimated percentage of payroll for UAL to allow a consistent comparison of total costs.

In the miscellaneous plan, total costs are projected to increase from the current 41.8 percent in FY 2022 to 42.9 percent in FY 2023. In the safety plan, total costs are projected to increase from the current 69.6 percent in FY 2022 to 71.1 percent in FY 2023. These rates do not consider the employee pick -up of the employer share; that pick -up materializes as savings in the City’s pension costs. Consistent with applicable MOAs, the FY 2023 forecast presumes that the miscellaneous plan will pick up 1 to 2 percent of the employer pension cost and that safety plan members will pick up 3 to 4 percent.

TABLE 15: CalPERS’ Projected FY 2022-2032 Blended Retirement Rates (percentage of payroll)
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
FY
2028
FY
2029
FY
20230
FY
2031
FY
2032
Miscellaneous 41.8 42.9 43.5 44.1 41.5 37.6 37.2 36.7 36.3 36.0 32.6 Safety 69.6 71.1 72.9 74.0 74.0 73.8 73.1 71.3 70.4 69.5 66.0

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The City has taken several proactive steps to address rising pension costs and long -term liabilities, including cost -sharing in labor agreements, establishing an irrevocable Section 115 Pension Trust (“Pension Trust”), and adopting a Pension Funding Policy. In January 2017 the City council authorized the establishment of a Pension Trust Fund w ith the Public Agency Retirement Service (PARS) ( CMR 7553). Contributions were initially made to the Pension Trust on an ad -hoc basis, using one -time savings or excess revenues. In October 2018, the City Council directed staff to include in budget assumptions the NC for pension benefits at an equivalent of 6.2 percent discount rate and a transfer of the additional (“supplemental”) funding beyond CalPERS actuarial determined contribu tion levels to the Pension Trust Fund (CMR 9740 ). Additional one -time contributions continue to be made each year if excess revenues or unspent savings are available, subject to Cit y Council approval. This practice was reinforced in the development of a Pension Funding Policy, adopted by the City Council in November 2020 ( CMR 11722 ). As part of policy goals, t he City seeks to reach a 90 percent funded status by FY 2036. This policy is subject to modification at City Council discretion and requires that staff report the status of the funding goal every three years. Staff anticipates returning in Fall 2022 with t his analysis. In this forecast, an approximate $5.2 million ($3.1 million in the General Fund) in supplemental contributions is assumed in FY 2023, relatively constant to prior year contribution levels. Through FY 2022, a total of $40.2 million in principa l contributions will have been made to the Pension Trust.

In the General Fund, it is anticipated the City will spend a total of $37.3 million on total pension costs in FY 2023, including both CalPERS contributions and supplemental Pension Trust Fund contributions. This is approximately $2.7 million higher than the prior year costs of $34.6 million, or a 7.8 percent increase. These expenses represent approximately 16 to 17 percent of the General Fund’s total expenses.

Healthcare: Consistent with the most recent labor agreements between the City and its bargaining units in the General Fund, the City’s contribution amounts towards medical costs for employees are based on a flat rate contribution from the City, with the employee contributing towards the remai ning medical plan premium. Like salaries, healthcare costs are updated in accordance with applicable Memorandum of Agreements (MOA) between the City and its labor groups and the Management and Professional Personnel and Council Appointees Compensation Plan(s).

Retiree Healthcare/Other Post -Employment Benefits (OPEB): Retiree Medical is based on the most recent actuarial study prepared by Bartel Associates, which is completed every two years.

The most recent study was completed in May 2021 to inform the de velopment of the FY 2023 and FY 2024 operating budgets. Consistent with City Council direction ( CMR 1 1284), this forecast continues the practice to budget the cost for retiree healthcare at a more conservative

6.25 percent discount rate and transmit the amount above the required payment as an additional discretionary payment (“prefunding”) to the Califor nia Employers’ Retiree Benefit Trust (CERBT) Fund. In FY 2022, this additional contribution is approximately $2.2 million ($1.4 million General Fund). The City continues to budget for the full payment of the Actuarial Attachment A - 22
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Determined Contribution (ADC) for reti ree healthcare. CalPERS blends active employees with pre-Medicare retirees and charges the same medical premium, even though younger employees on average consume less healthcare. The higher premium to younger employees thereby subsidizes older employees an d retirees who, on average, have higher claims and premiums. This implied subsidy effectively lowers the funding necessary to meet the ADC. The FY 2023 Budget estimates $9.3 million for ADC, an approximate $500,000 or 5.7 percent increase from FY 2022 levels of $8.8 million.

TABLE 16: Retiree Medical General Fund Contributions (Millions) FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 $9.3 $9.5 $9.8 $10.1 $10.1 $10.9 $11.2 $11.5 $11.9 $12.3

Workers’ Compensation: The budget appropriation for workers' compensation includes an estimate for claims incurred and reserves for current filings at an 85 percent confidence level, based on actuarial studies completed by Bickmore. In FY 2021, claims expenditures decreased slightly by $340,000 or 5.3 percent from $6.4 million to $6.1 million from the prior year.

Actuarial estimates completed in August 2020 informed FY 2022 budget levels of $5.9 million ($3.9 million in the General Fund). More recent actuary estimates completed in Au gust 2021 project higher than expected levels for FY 2022 at $6.3 million ($4.2 million in the General Fund). Staff will continue to monitor expenditures in the fund and bring forward adjustments as necessary. Estimates for FY 2023 are $6.6 million ($4.4 m illion in the General Fund), representing a $0.8 million increase ($0.5 million in the General Fund) or 12.8 percent increase over the Adopted FY 2022 Budget of $5.9 million ($3.9 million in the General Fund). Estimates for workers' compensation increase i n the forecast at rates consistent with general CPI increases.

Contract Services
This forecast assumes contract services of $29.1 million in FY 2023, a 3.7 percent decrease from the FY 2022 Adopted budget of $30.2 million. This decrease is driven primaril y by the removal of one -time costs adopted in FY 2022 including funding to address continued COVID -19 recovery efforts across the City. These decreases are partially offset by service contract increases as well as a 3.7 percent CPI cost increase in FY 2023 based on a review of the changes in the California Consumer Price Index (CCPI) in the San Francisco Bay Area from the August to August period. It is expected that the estimated CPI increases will be substituted with further department base budget requests as part of the FY 2023 budget process.

Contract Services - Committed Additions
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The Committed Additions included in this forecast account for anticipated operating and maintenance (O&M) costs in the General Fund for capital projects anticipated to come o nline in within the ten -year forecast period. A preliminary total estimate of $0.1 million for costs associated with the Boulware Park Improvements (PE -17500) and Library Automated Materials Handling (LB -21000) projects that are anticipated to come online in FY 2023. Additional cost increases are included throughout the ten -year forecast, primarily due to estimated operating impacts from the Public Safety Building (PE -15001), Fire Station 4 (PE -18004), Dog Park Installations (PG-18001), and Park Restroom Installations (PG-19000).

TABLE 17: FY 2023 – FY 2032 Committed Additions (Millions) FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 $0.1 $0.5 $0.6 $0.6 $0.6 $0.7 $0.7 $0.7 $0.7 $0.8

Supplies and Materials
The FY 2022 A dopted Budget for the General Fund included $3.0 million for Supplies and Materials, which is anticipated to increase slightly by a 3.7 percent CPI cost increase in FY 2023 to $3.1 million based on a review of the changes in the California Consumer Price I ndex (CCPI) in the San Francisco Bay Area from the August to August period . It is expected that the estimated CPI increases will be substituted with department base budget requests as part of the FY 2023 budget process.

General Expense
This category inc ludes costs for travel and meetings, telephone and non -city utilities, contingency accounts, bank card service charges, and subsidies and grants provided through the Human Services Resource Allocation Program (HSRAP). The FY 2022 Adopted Budget of $7.9 million is expected to increase to $8.5 million in FY 2023, primarily due to a $1.0 million increase for Project Homekey (discussed further below) and a 3.7 percent CPI cost increase based on a review of the changes in the California Consumer Price Index (CCP I) in the San Francisco Bay Area from the August to August period. These increases are partially offset by a $0.8 million decrease for the removal of the Budget Uncertainty Reserve in FY 2023 . It is expected that the estimated CPI increases will be substit uted with department base budget requests as part of the FY 2023budget process.

General Expense – Project Homekey: On September 27, 2021 the City Council directed staff to apply for Project Homekey funding in conjunction with LifeMoves to build an emergency shelter at the former Los Altos Treatment Plant (LATP) site (CMR 13595). This project will rapidly deploy modular housing to provide interim housing opportunities for homeless individuals and families in the City of Palo Alto. Project Homekey is a prog ram, funded by the State of California Department of Housing and Community Development, intended to provide grant funding and facilitate a partnership with the State to quickly acquire, rehabilitate, or master lease a variety of housing types. Once develop ed, these projects provide interim or permanent housing options for persons experiencing homelessness and who are also at risk of health concerns. The Attachment A - 24
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site would be operated for at least fifteen years as interim housing per the program’s durational requirement. This project would utilize a combination of funding sources including the Project Homekey Program for capital expenses and donations, grant funds, and City support for ongoing operations expenses. This LRFF includes the City’s committed investment of $7.0 million in operating expenses ($1.0 million annually starting in FY 2023 through FY 2029), with actual timing of the funding still to be determined. Some operating funding support is expected from Project Homekey as well as the County of Santa Clara. Any remaining gaps in funding will need to be closed by fundraising, operating cost containment strategies, and/or grant funds.

General Expense - Cubberley Lease: In FY 2015, the City and Palo Alto Unified School District (PAUSD) agreed to a five –year extension of the Cubberley lease from January 2015 to December 2019. In October 2019, the City Council directed staff to negotiate with PAUSD to extend the lease agreement an additional five years, through December 2024 ( CMR 10730). A new Cubberley lease was approved by the City Council in June 2020 ( CMR 11460) for a smaller portion of the Cubberley site with a correspondingly lower base rent payment( CMR 11386). As part of the original lease agreement, the City Council approved creation of the Cubberley Infrastructure Improvements F und. The new lease continues the $1.9 million transfer to the Cubberley Property Infrastructure Fund, which is classified as an Operating Transfer -Out and discussed in further detail below. With the Cubberley Infrastructure funds set aside, the monthly base rent for the Cubberley premises is $228,000 throughout the term or $2.7 million annually. The monthly base rent may be reduced by $14,000 per month if the JMZ Building is returned to PAUSD and $6,000 per month if the S Building is returned. The Community Services Department is currently in negotiations with PAUSD to expand the Cubberley premises by renting additional space from the M Building. Separately, the City leases extended child daycare site from PAUSD on a two -year lease from July 2020 to June 202 2. The combined monthly rent for the child daycare sites amounts to $59,000 plus $4,000 for utilities ($756,000 annually for rent and utilities).

Rents and Leases
The Rents and Leases expense category for FY 2023 is estimated to increase from the prior -year level by approximately 3 percent based previously negotiated lease increases and remain at $1.0 million. This category includes the lease agreement for Development Services staff at locations outside City Hall (285 Hamilton and 526 Bryant) as well as le ase with Stanford for El Camino Park. A new lease agreement was executed in December 2020 for the Development Services office location at 526 Bryant Street, limiting the space to the basement level ( CMR 11426). In June 2021, the City entered into a seventh amendment for the Development Services office lease at 285 Hamilton Avenue to extend t he term from February 2022 to January 2025 (CMR 12334 ). As expenses for rent for Development Services are adjuste d, a corresponding revenue adjustment will be made to ensure Development Services maintains cost recovery levels.

Facilities and Equipment
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The Facilities and Equipment expense category is expected to increase from the FY 2022 Adopted level of $427,000 to $443,000 by a 3.7 percent CPI cost increase in FY 2023 based on a review of the changes in the California Consumer Price Index (CCPI) in the San Francisco Bay Area from the August -to-August period . This budget category includes subscription payments for equipment like public safety radios as well as other non-capital equipment.

Allocated Charges
Allocated Charges represent expense allocations by the City’s Enterprise and Internal Service Funds for services and products they provide to General Fund depar tments. The FY 2022 Adopted Budget for the General Fund included $20.1 million for these expenses, including utilities usage, general liability insurance, technology costs, vehicle equipment maintenance and replacement costs and other charges. The FY 2023 allocated charges in the Forecast update the revenues and expenses for these various allocations based on the information available at the time of the Forecast development. FY 2023 is anticipated to experience an increase of 11.6 percent to a total of $22. 4 million. This change is primarily due to a general CPI cost increase of

3.7 percent across most allocated charges; however, several of these charges have increased more significantly due to anticipated cost increases for Liability Insurance and Technolog y services. In addition, the two -year reduction of vehicle replacement charges approved by Council as part of the FY 2021 Adopted Budget has been restored as of FY 2023, increasing that charge by $1.4 million.

Operating Transfers Out
Operating Transfers O ut include transfers from the General Fund to Debt Service Funds, the Technology Fund, and various other funds but excludes transfers to the Capital Improvement Fund, which are detailed in the following Transfer to Infrastructure section. The FY 2022 Adopted Budget included Operating Transfers Out of $4.3 million. In FY 2023, Operating Transfers Out are anticipated to increase to $4.4 million as a result of standard annual cost escalators of transfers between the General Fund and the Electric and Technology funds.

Transfer to Infrastructure
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During the development of the FY 2022 budget, uncertainties from COVID -19 were anticipated to significantly decrease TOT revenues, which represents a significant portion of the General Fund transfer to the Capital Impr ovement Fund. The anticipated impact was reflected in the FY 2022 Adopted General Fund transfer to the Capital Improvement Fund, which was $8.5 million and comprised of a$2.6 million base transfer including interest earnings and $5.9 million from TOT reven ue generated through an additional voter -approved 3.5 percentage point TOT increase. Incremental TOT increases from the voter -approved rate increase and new hotels are dedicated to the Capital Improvement Fund to support the 2014 Council Infrastructure Pla n, consistent with City Council direction. As the local economy continues to recover from the COVID-19 pandemic, this forecast estimates transfers from TOT revenues in FY 2023 are currently projected to increase to $9.2 million and the base transfer to inc rease to $10.7 million for a total $19.9 million transfer to the Capital Improvement Fund. This forecast continues the goal established as part of the 2022-2026 CIP to restore the base portion of this transfer to pre - pandemic levels by FY 2026. This budget category also includes the separate $1.9 million transfer to the Cubberley Property Infrastructure Fund, described earlier in this document.

Budget Stabilization Reserve
The City's Budget Stabilization Reserve (BSR) serves as the primary General Fund r eserve. By policy, the BSR is maintained in the range of 15 to 20 percent of General Fund operating expenditures, with a target of 18.5 percent. Any reduction to the reserve below 15 percent requires City Council approval. At the discretion of the City Man ager, any BSR balance above

18.5 percent may be transferred to the Infrastructure Reserve (IR), which was established to provide funding for maintenance and rehabilitation of the City’s capital assets. The BSR is used to fund unanticipated one -time costs a s opposed to ongoing or recurring operating expenditures. The City's intent is to fund ongoing programs and services with ongoing dollars.

Maintaining the BSR at 18.5 percent also provides flexibility for the City to deal with unforeseen issues that may arise. Furthermore, establishing, and following, sound fiscal reserve policies has been a strong factor in the City being rated AAA by rating agencies.

Based on information reported in the FY 2021 Annual Comprehensive Financial Report (ACFR) CMR 13501, the City’s current BSR balance is $43.3 million, approximately $4.6 million above the 18.5 percent targ et. In addition to the additional funding from FY 2021, this report estimates that FY 2022 could end the year with a surplus of $10.7 million, based on the current trends of a number of major tax revenue categories, compared to the FY 2022 Adopted Budget.

This one-time funding surplus compared to the FY 2022 budget has not been factored into the 2023-2032 LRFF assumptions. Use of this funding is discussed further in the Conclusion section of this memorandum.

Assumptions NOT Included in Forecast
It should be noted that this forecast does not include several potential impacts to the FY 2023 - 2032 LRFF that are outlined below. This is not intended to be a comprehensive list nor in any priority order.

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Project Homekey: On September 27, 2021 , the City Council dir ected staff to apply for Project Homekey funding in conjunction with LifeMoves to build an emergency shelter at the former Los Altos Treatment Plant (LATP) site (CMR 13595). This project will rapidly deploy modular housing to provide interim housing opport unities for homeless individuals and families in the City of Palo Alto. As discussed previously, this LRFF includes the City’s committed investment of $7.0 million in operating expenses ($1.0 million annually starting in FY 2023 through FY 2029); however, with the actual timing of the funding still to be determined, and commitments from other local partners negotiated, City costs for this project could fluctuate up or down throughout the ten year period.

November 2022 Ballot Initiatives: In 2019, the Cit y Council approved the Fiscal Sustainability Workplan (CMR 10267), which included the exploration of a revenue generating ballot measure. Work on this initiative was suspended in March 2020 as part of the City’s pandemic response. Resumption of this effort was outlined in the Community and Economic Recovery Workplan and 2021 Council Priorities and on June 15, 2021, the Finance Committee (CMR 12299) recommended that the City Council approve the Ballot Measure Workplan. On August 16, 2021, the City Council (C MR 12381) approved the workplan for a revenue generating November 2022 ballot measure that was recommended by the Finance Committee and staff.

The Ballot Measure Workplan contains three major components: analysis, polling, and outreach. Full implementation of this workplan will require significant resources, including internal staffing and consultant expertise as well as extensive stakeholder engagement.

Sustainability and Climate Action Plan (S/CAP): In early 2020, the City launched an update of the Sustainability and Climate Action Plan (S/CAP) Framework to determine the goals and key actions needed to meet its sustainability goals, including the goal of reducing green house gas (GHG) emissions to 80 percent below 1990 levels by 2030 (the “80 x 30” goal). In April 2021 (CMR 12009 ), Council reviewed the S/CAP Update Report, provided feedback on policy tools, directed the Mayor to form an S/CAP Ad Hoc Committee, directed staff to pursue near-term actions in parallel to the S/CAP Update, and directed staff further develop various elements of the S/CAP. The S/CAP Ad Hoc Committee launched in August 2021 and the City is currently in the process of finalizing the proposed S/CAP Goals and Key Actions as well as the Three -Year Work Plan, which was created at the direction of the April Council motion. The final S/CAP Report and Three-Year Work Plan will be brought to Council for acceptance in Spring 2022 and CEQA review will commence once the S/C AP Goals and Key Actions are finalized. As the S/CAP Work Plan and final report are still in development, cost projections are not yet contemplated in the forecast. Implementation is anticipated to require significant resources, including internal staffing and consultant expertise as well as stakeholder engagement.

Service reductions not restored to pre -pandemic levels: The base case LRFF assumes that the significant reductions taken in the FY 2021 and FY 2022 Adopted Budgets continue throughout the forec ast period, unless otherwise restored by subsequent City Council actions, including those taken in FY 2022 Adopted and FY 2022 Q1. A summary of Q1 adjustments is included in this report in the section entitled FY 2022 Preliminary First Quarter Adjustments. Full Attachment A - 28
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restoration of remaining reductions is modeled in Alternative Scenario A. The following is a high-level summary of the reductions in FY 2021 in response to the initial economic impacts of COVID-19, as originally stated in the FY 2022 -2031 LRFF ( CMR 11954). For a detailed listing of adjustments, including FY 2021 and FY 2022 reductions and restorations and other FY 2022 actions, see relevant CMRs including the FY 2021 Budget Adoption ( CMR 11330 ), FY 202 2 Budget Adoption ( CMR 12307 ), FY 2022 Q1 ( CMR 13439 ), and listing of other budgetary amendments.

Community & Library Services: FY 2021 reductions included $0.3 million in program revenues and $4.9 million in expenses in the General Fund, including 16.1 full -time and

21.02 part-time staffing reductions (finaliz ed in FY 2022). These actions reduced library hours at all branches, keeping smaller libraries (Children’s, Downtown, and College Terrace) open three days a week and full -service branches (Mitchell Park and Rinconada) open six days per week. This includes greater cost-recovery through changes in service delivery, charges for services, and/or limiting operating hours for facilities such as the new Junior Museum and Zoo (JMZ), community centers, open space preserves, the Children's Theatre, and the Art Center . These actions also reduced or eliminated programming such as special events, art exhibits, human services activities, and teen programs.

Planning, Transportation, and Infrastructure: FY 2021 reductions included $2.1 million in program revenues and $6 .1 million in expense in the General Fund, including 8.25 full - time and 1.44 part-time staffing reductions (finalized in FY 2022). Included were actions to reduce administration, code enforcement, front counter support, and inspection services. Understanding that this could delay services to the development community, the building inspection and plan review team was reorganized to minimize the impacts to lead times for inspections, progress on the Energy Reach Code, and the ability to meet next day inspecti ons. The Crosstown and Embarcadero shuttle programs were eliminated, and the delivery of this service redesigned to reduce costs. Additionally, funding for tree trimming and vehicle replacement was reduced for one year and rate changes in various utility enterprise funds were suspended.

Public Safety: FY 2021 adjustments included an increase of $1.55 million in program revenues and a reduction of $7.3 million in expenses in the General Fund, including

33.27 full -time and 2.28 part -time staffing reductio ns (finalized in FY 2022). These actions included suspensions of specialized police units such as the traffic enforcement and investigation units to maintain minimal police patrol services and shift the priority of police services to urgent calls, lowering capacity to respond to nonurgent calls.

Additional changes included limited officer training, promotional testing, uniform purchases and eliminated or changed to full cost recovery non -essential programming such as school resource officers. Curtailed disp atch, communication, and emergency preparedness services, as well as emergency incident response and training and work to Attachment A - 29
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adopt fees to increase revenue for first responder and ambulance subscription were also included in the actions.

Internal Services & Council Appointed Officers: FY 2021 reductions included $2.9 million in operating expenses in the General Fund, including 5.9 full -time and 0.96 part time staffing reductions (finalized in FY 2022). Internal Services departments include the Information Technology, Human Resources, and Administrative Services Departments as well as the Council and appointed officers (City Manager, City Attorney, City Auditor and City Clerk). Reductions in these areas align with the changes in services, increasing timeframes for assistance and review in areas such as recruitments, procurements, performance reporting, and risk management. Technology solutions will be constrained to only essential contracts and systems and support equipment needs as majority of our workforce con tinues to work from home. The City Council, Innovation and Special Events, and Human Recourses contingency accounts were eliminated in FY 2021 on a one-time basis.

Significant code and ordinance updates: Updates to several significant programs, codes, and ordinances such as the Seismic Inventory ordinance and program, Historic Building survey and ordinance, and a zoning code update are expected to be necessary in the near future.

Depending on future Council direction and the results of program and survey u pdates, implementation is anticipated to require significant resources, including internal staffing and consultant expertise.

Labor negotiations: As of the timing of this report, there are no agreements in effect for FY 2023 and beyond. The City’s curren t agreements with safety units are set to expire on June 30, 2022. These safety units are the Palo Alto Peace Officers Association (PAPOA), the International Association of Fire Fighters (IAFF), Fire Chiefs Association (FCA), and Palo Alto Police Management Association (PAPMA). Additionally, the City's agreement with the Management and Professional group is set to expire June 30, 2022. Agreements with the Service Employees International Union (SEIU) extends through December 2021 and new labor agreements are anticipated with the Utilities Management and Professional Association (UMPAPA) whose contract expired June 30, 2020.

CalPERS Pension Updates : As of the timing of this report, the CalPERS board completed their Asset Liability Management (ALM) process whi ch reviews capital market assumptions and strategic asset allocation and sets the discount rate for future periods. This comprehensive review is completed every four years. Most significantly, this study resulted in actions that reduce the discount rate from 7.0 to 6.8 percent, add 5 percent leverage to the asset allocation mix, and increase the normal cost paid by Public Employee’s Pension Reform Act (PEPRA) employees. Most PEPRA employees will see median increases ranging from 1.2% in miscellaneous plans to 1.5% in safety plans in their total normal cost. These changes, as well as preliminary 21.3 percent returns for the period ending June 30, 2021, will materialize in City finances beginning in FY 2024. Overall, CalPERS expects that many plans will see re quired Attachment A - 30
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employer contributions that are comparable to or slightly lower than previously determined contribution requirements. Additional information can be found in the CalPERS news release issued on November 15, 2021: https://www.calpers.ca.gov/page/newsroom/calpers-news.

Capital Infrastructure Plan: As referenced earlier, the June 2014 Council approved Infrastructure Plan of $125.8 million in projects was based on construction and design costs with data from 2012. As construction costs have increased and the City is required to pay prevailing wages, the Infrastructure Plan’s funding status has shifted. The FY 2022 Adopted Capital Budget anticipated that these projects would cost $259.8 mi llion. Staff is working to maintain these projects within the current budget; however, project costs can fluctuate based on market conditions at the time of construction award.

Grade Separation: The grade separation project consists of the four at-grade crossings along the Caltrain corridor in the City of Palo Alto located at Palo Alto Avenue, Churchill Drive, Meadow Avenue, and Charleston Road. The City is working on conceptual alternative plans for the selection of the preferred alternative at Churchill Avenue, Meadow Drive, and Charleston Avenue crossings. On April 26, 2021, the City Council eliminated two South Palo Alto Tunnel Alternatives from consideration after receiving the final report and recommendations from the Expanded Community Advisory Panel (XCAP) ( CMR 12185 ). Staff is currently in process to provide a detailed review of the alternatives in considerat ion and seeking Council direction for additional studies to further narrow alternatives in consideration for selection of a preferred alternative.

In FY 2022, staff plans to conduct additional studies as directed by the Council and work with the Rail Committee for the selection of preferred alternative(s). Once preferred alternatives are selected, the next phase will include preparing preliminary engineering and environmental documents, which is anticipated in FY 2023 for the three crossings. The Valley Tr ansportation Authority (VTA) 2016 Measure B Caltrain Grade Separation funding will be available to the City for funding the next phases of the project including preliminary engineering and environmental review, right-of-way, design, and construction.

The 2016 Measure B program tax revenue amounts to a total of $700 million in 2017 dollars for all at -grade crossings in Santa Clara County. The City anticipates allocation of 50% of said funding. Grade Separation 2016 Measure B funding requires matching local funds as a result, additional funding sources will need to be identified to perform this work in upcoming years (FY 2023 – FY 2032). The full funding needed to complete the grade crossings project is unknown at this time. However, it is expected, that fun ding necessary to complete this work will exceed funding currently identified for this project. Therefore, additional resources will need to be explored to plan and fund these grade separations.

Parks Master Plan: The Parks Master Plan was finalized in 2017; however, when approved it identified a need to develop a funding strategy and this is still in process. As such, this forecast does not yet contemplate the necessary investments to fully execute this plan.

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Racial Equity Work: The Race & Equity Fra mework and action plan was approved in June 2020 (CMR 11441) and remaining funding of $0.5 million has been reappropriated to be available in FY 2022. Staff is in the process of procuring consultants to assist with the City’s diversity, equity, and inclusion efforts in engaging staff, the City Council, and Boards/Commissions After this initial work, further recommendations are forthcoming and will likely require additional funding either for more consultant assistance and or an ongoing in-house Equity Officer position (which was discussed during the 2020 Ad Hoc Committee meetings). These recommendations are anticipated to be brought forward as part of the FY 2023 or FY 2024 budget process.

Palo Alto Animal Shelter operations and rebuild
In early 2019, the City entered into a public private partnership with Pets In Need (PIN) to support the operation of the City’s animal shelter. Part of PIN’s operating proposal included robust fundra ising to demolish the current shelter and build a state -of-the-art animal shelter for the City. The City anticipated that the cost of the rebuilding would be shared between the City and PIN ; however, in November 2021 PIN announced a decision to end the ope rating agreement with the City in FY 2022. Due to the recent nature of this decision, this forecast does not contemplate alternative operating plans nor the necessary investments to execute the rebuild.

City owned assets operated by non -profit organizati ons: This Forecast does not include any additional capital or operating investments for the Avenidas Senior Center , the Ventura Child Care Center, nor the Sea Scout Building. As costs around potential capital or operating investments for these assets solid ify, staff will return to City Council to address them as appropriate. In FY 2022 the City Council directed a funding strategy for the Roth Building Rehabilitation Project, which consisted of utilizing $4.0 million from a variety of funding sources including the Stanford University Medical Center (SUMC) fund community and infrastructure funds, parks impact fees, and community center impact fees ( CMR 12307 ). This funding strategy is included in the LRFF; however, if costs for rehabilitating the Roth building increase, additional sources of funding would need to be identified.

Cubberley Community Center Concept Plan: The City and PAUSD completed a co -design process for a Cubberley Community Center Concept Plan in 2019; however, costs to implement that concept plan in excess of the dedicated Cubberley infrastructure funding included in the existing agreement between the PAUSD and the City are not assumed in this Forecast. The Concept Plan may require revision before implementation as operational changes have occurred since its completion including execution of a new lease between the City and PAUSD for the school distric t owned portion of Cubberley, which commenced on July 1, 2020, and reduced the amount of building space leased to the City.

Loans for special projects: From time to time the City’s General Fund will assist other City operations with modest cash flow loan s to bridge fiscal years. For example, the City provided over $3 million in loans to the Airport Fund as it works to secure significant grant funding from Attachment A - 32
Attachment A

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the Federal Aviation Administration (FAA) for capital improvement costs. As of FY 2020, the Airport Fund began paying back the loan to the General Fund. Additions and other initiatives funded in other funds may need financial support from the General Fund to ensure they are fully implemented. Additional loans from the General Fund are not assumed in this forecast.

Legislative Updates: Various actions at the state and federal level that could impact the City of Palo Alto have not been incorporated into this forecast due to the changing context and uncertainty of the quantitative impacts of potential legis lative changes. This includes the Cadillac Healthcare Tax at the federal level, property tax changes at a state level, and state-level efforts focused on the provision of affordable housing. As uncertainty regarding the potential impact of various legisla tive initiatives is clarified, appropriate adjustments will be identified and brought forward as part of future budget development cycles.

Tax revenue alignment with updated Comprehensive Plan: The 2030 Comprehensive Plan was adopted in FY 2018, including the potential fiscal impact of various land use scenarios. The fiscal impact of this plan and various land use scenarios are not factored into this forecast.

FY 2023 Budget Development Guidelines
As discussed earlier in this document, this preliminary fo recast represents the initial steps of the FY 2023 budget development process. In the FY 2019 – FY 2028 Long Range Financial Forecast presented in December 2018, staff included budget development guidelines based on the trends that were identified and the anticipated fiscal condition of the City. Due to the clear overlap of projecting the City’s fiscal condition and the need to shape service level expectations, staff recommends that the inclusion of Budget Development Guidelines be incorporated into the discussions at the beginning of an annual budget process.

As the City and the County continue to move through recovery from COVID -19, the local economy and major tax revenue categories are showing signs of rebounding. City operations, which were adapted to b est support and serve the community during County Public Health Orders and State Public Health restrictions, are returning to in person delivery where possible.

However, as mentioned in the preliminary FY 2022 Q1 financial status report ( CMR 13439 ), there are several issues across the City impacting the ability to tr ansition out of the pandemic that could continue into FY 2023:
• Staff turnover across City departments is slowing the ability to restore programs and services impacted by the pandemic, coupled with the addition of new projects and priorities identified by the Council subsequent to the 2021 priority setting and FY 2022 Budget Adoption.
• Challenges with recruiting and hiring, due to the number of vacancies and the services restored in the FY 2022 Budget, are also contributing to slower service restoration. • Supply chain issues related to manufacturing and construction are impacting various programs across the City, including replacement of City fleet vehicles, and acquiring materials for construction projects.

Attachment A - 33
Attachment A

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This year, the FY 2023 Budget Development Guidelines, which are detailed in Attachment A, are meant to reflect the anticipated fiscal condition of the City and to provide high -level budgetary direction to the organization. These guidelines will shape and inform the annual financial planning and the allocation of resources across the organization, especially in the General Fund.

Further, strategic work is underway focused on a Community and Economic Recovery Strategy.

Key to the City Council’s and staff’s fiscal and recovery planning is the important work underway to understand the fiscal implications of a revenue generating ballot measure for the November 2022 election. This also includes the potential for City actions to affect economic recovery and associated impacts on City revenues. This, in turn, affe cts the level and nature of services the City can deliver to the community.

When the Fiscal Sustainability Workplan (CMR 10267) was approved by the City Council on April 22, 2 019 drafting a budget development policy was listed as part of the “Newly proposed or potential activities proposed to be completed”. The inclusion of Budget Development Guidelines in with this forecast represents staff’s recommended method of addressing t his referral. Pairing Budget Development Guidelines with the forecast at the beginning of the budget process links the anticipated fiscal condition of the organization with the necessary context regarding service delivery prioritization and resource alloca tion that will be further explored through the process. This also ensures that the City is able to proactively address anticipated changes in its fiscal condition through the budget process.

Attachment A - 34
Attachment A

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Conclusion
The financial impacts of the COVID -19 pandemic and hea lth orders significantly restrained consumer spending, resulting in a weakened job market, and uncertainty; however, positive trends in major tax revenue categories that began in Q4 of FY 2021 and continue into Q1 of FY 2022 indicate that the economy is sl owly recovering. This preliminary forecast provides context to begin discussions on how to approach restoring services back to pre -pandemic levels while keeping in mind the budget constraints still facing the City in the first couple years of the forecast.

The forecast does not assume restoration of the service changes experienced in FY 2021 and FY 2022, and as seen in Alternative Scenario A below, incoming resources are not enough to sustain full restorations in FY 2023 and beyond. Alternative Scenario B , examines a competitive market adjustment for labor, and demonstrates that this adjustment would cause a longer gap as compared to the base case forecast. As mentioned previously, there is one -time funding of $4.6 million from savings in FY 2021 and there is an anticipated surplus of up to approximately $10 million in FY 2022. This figure is above the preliminary estimate provided to the Council in the Preliminary FY 2022 Q1 Financial Status report in October 2021 of additional revenues of $5 million - $6 million and is primarily driven by updated Sales Tax figures. When combined, these one-time surplus funds from FY 2021 and projected in FY 2022 have not been factored into the 2023-2032 LRFF assumptions. The City Council provided staff direction as part of the Preliminary FY 2022 Q1 Financial Status report to bring forward recommended allocation of these surplus funds as part of the FY 2022 Mid -Year Budget Review, which staff anticipates bringing for Council review in the first quarter of the new calendar year.

With regard to the $4.6 million, since it is savings from FY 2021 and above the 18.5 percent BSR target, by City Council approved current policy, the funding would be allocated 50% to be transferred to the Section 115 Pension Trust and 50% transferred to the Capital Improvement Fund for infrastructure investment. Given the additional financial variables, additional options for allocation may include: increase funding in the Utility Transfer Litigation Reserve , restoration of services and/or investment in high priority projects, or l eft in the BSR to be discussed as part of the FY 2023 budget. Final recommended actions will be brought forward as part of the FY 2022 Mid-Year Budget Review as noted previously.

Alternative Scenarios for Consideration
Alternative Forecast Scenario A: Restoration of Service to Pre-COVID-19 Service Levels As discussed in the Assumption NOT Included in Forecast section above, the base case forecast does not include restoration of services that were impacted as a result of the COVID-19 pandemic, other than specific actions taken by Council in the preliminary FY 2022 Q1 financial status report ( CMR 13439 ). Those items have been outlined in the FY 2022 Preliminary First Quarter Adjustments section of this memorandum . This alternative forecast models the impact of restoring City Services to t he pre -pandemic levels in FY 2023. The summary table for this alternative forecast and the Net Operating Margin graph for this alternative forecast are below.

Additional discussion for this alternative follows these figures.

Attachment A - 35
Attachment A

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TABLE 18: FY 2023 – FY 2032 Long Range Financial Forecast Alternative Forecast A

TABLE 19: FY 2021 –2030 Long Range Financial Forecast Net Operating Margin Alternative Forecast A

Compared to the Base Case, the General Fund would have a large gap of approximately $11.0 million in the first year of the forecast. This gap would shrink gradually until 2030, which would be the first-year revenues would be at a level to support the expenses. Although an immediate restoration of all services to pre-pandemic levels is not feasible as evidenced by this scenario, as mentioned previously in this report, thoughtful and measured restoration of high priority services that can be sustained by the recovering revenue will be brought forward for Council consideration as part of the FY 2022 Mid-Year Review as well as the FY 2023 Budget process.

Alternative Forecast B: Compensation Change Model, Near-term Adjustments Consistent with City Council direction and past practice, the Base Case assumes a two percent general wage adjustment in the years bey ond the terms of existing MOAs. This rate is used as a forecasting assumption and not a commitment for future negotiations. As of the timing of this Attachment A - 36
Attachment A

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forecast, there are no MOAs in effect. Therefore, the entirety of the forecast assumes a 2.0 percent wage increase.

This alternative scenario models the impact of a one -time adjustment in FY 2023 to increase compensation by an additional 2.0 percent above the two percent assumed in the Base Case to better align the workforce to be competitive in the market (4. 0 percent total). As with other alternative models in the LRFF, this model is for forecasting purposes and is not a commitment to future labor negotiations.

Similar to trends at the local and national level, the City is experiencing challenges in staffing a high level of vacancies due to labor shortages and an uptick in resignations that are contributing to a highly competitive labor market. As a service -driven organization, with approximately 60 percent of resources allocated to staff, the City is particu larly vulnerable to the current workforce challenges. In this competitive environment, employees have more choices, and many are re-evaluating their career decisions with new perspectives. Recognition of the difficult work and continued dedication is impor tant, and City management is working on flexible work arrangements (where feasible), advancing a positive work environment, and supporting other programs that express appreciation and reinforce Palo Alto's reputation as an employer of choice.

TABLE 20: FY 2023 – FY 2032 Long Range Financial Forecast Alternative Forecast B

TABLE 21: FY 2023 – 2032 Long Range Financial Forecast Net Operating Margin Alternative Forecast B
Attachment A - 37
Attachment A

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In FY 2023, the one -time increase of two percent adds approximately $2.8 millio n citywide ($1.5 million in the General Fund). Minor increases for a general 2.0 percent adjustment are forecasted in the out years. In this scenario, the initial surplus in FY 2023 is lessened compared to the Base Case and wider gaps between revenues and expenses occur in the out years of the forecast. The Base Case projected that by FY 2025, the City would begin to have a positive surplus; this alternative forecast extends the operating gap to FY 2026.

STAKEHOLDER ENGAGEMENT
The preliminary forecast fo r FY 2023 represents the beginning of the fiscal year 2023 budget development process. Information provided in this report will be discussed with the City Council after Finance Committee and those conversations will provide direction to staff in the budget development process. It is anticipated that conversations with City Council and the community will occur through public budget hearings in Spring 2022, according to the standard budget adoption process.

RESOURCE IMPACT
Financial implications from this r eport and input from the Finance Committee will be considered in the City Manager’s development of the Fiscal Year 2023 budget.

ENVIRONMENTAL IMPACT
This report is not a project for the purposes of the California Environmental Quality Act.

Environmental review is not required.

Attachments:
• Attachment A - FY 2023 Budget Development Guidelines
Attachment A - 38
Attachment A

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Attachment A – FY 2023 Budget Development Guidelines
1) Develop a structurally balanced budget that brings ongoing revenues and expenses into alignment. Develop a plan for any structural imbalance to ensure that the City maintains fiscal sustaina
bility over the short, medium, and long-term.
2) Allocate o
ne-time resources for one-time needs rather than committing one-time resources to ongoing services. Examine appropriate uses of revenue surpluses that exceed forecasted levels such as planning for recession needs, restoration needs, and strategic investments.
3) Ensure appropriate resource allocation for City Council’s identified priorities. 4) Focus on business process redesign to enhance quality, flexibility, and cost-effectiveness of s
ervice delivery (include examining opportunities to streamline, simplify, reorganize, and reallocate resources to avoid duplication of effort).
5) Explore alternative service delivery models (such as partnerships with non-profits or other public/private sector groups) to minimize overlap, maximize cost share, and effectively use resources.
6) Continue to
thoroughly analyze non-personnel/equipment/other costs, such as contract services, for cost savings opportunities or realignment with current needs.
7) Explore the expansion of existing revenue sources or the addition of new revenue sources, including the alignment of existing charges for services and the opportunity to establish new fees, when appropriate.
8) Continue to analyze and prioritize resource augmentations, seeking to offset augmentations with reductions elsewhere for net-zero impacts to the budget whenever possible; however, ensuring when resource augmentations are added, it is in alignment with one-time and ongoing forecasted sources.
9) Continue to prioritize proactively funding long term liabilities including but not limited to debt obligations, pension obligations, and capital infrastructure in accordance with City policies
as approved by Council.

FY 2023 Budget Development Guidelines
Attachment A - 39
Attachment A

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Attachment B – FY 2023 Budget Development Guidelines
1) Develop a structurally balanced budget that brings ongoing revenues and expenses into alignment. Develop a plan for any structural imbalance to ensure that the City maintains f
iscal sustainability over the short, me dium, and long-term. 2) Allocate
one-time resources for one -time needs rather than committing one-time resources to ongoing services. Examine appropriate uses of revenue surpluses that exceed forecasted levels such as planning for recession needs, restoration needs, and strategic investments.
3) Ensure appropriate resource allocation for City Council’s identified priorities. 4) Focus on business process redesign to enhance quality, flexibility, and cost-effectiveness of service delivery (include examining opportunities to streamline, simplify, reorganize, and reallocate resources to avoid duplication of effort).
5) Explore alternative service delivery models (such as partnerships with non-profits or other public/private sector groups) to minimize overlap, maximize cost share, and effectively use re
sources.
6) Continue to thoroughly analyze non-personnel/equipment/other costs, such as contract services, for cost savings
opportunities or realignment with current needs.
7) Explore the expansion of existing revenue sources or the addition of new revenue sources, including the alignment of existing charges for services and the opportunity to establish new fees, when appropriate.
8) Continue to analyze and prioritize resource augmentations, seeking to offset augmentations with reductions elsewhere for net-zero impacts to the budget whenever possible; however, ensuring when resource augmentations are added, it is in alignment with one-time and ongoing forecasted sources.
9) Continue to prioritize proactively funding long term liabilities including but not limited to debt obligations, pension obligations, and capital infrastructure in accordance with City policie
s as approved by Council.

FY 2023 Budget Development Guidelines

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City of Palo Alto (ID # 13844)
City Council Staff Report

Meeting Date: 1/10/2022

City of Palo Alto Page 1

Title: Informational Update on Utilities Operational Improvements From: City Manager
Lead Department: Utilities

Recommendation
This report is provided to the City Council for information and no action is required.

Background
Over the past few years, st aff has been considering options for improving workflow within the Utilities Department, specifically to strengthen continuity between engineering and operations functions. T his area of focus was heightened after th e City of Palo Alto’s electric system experienced outages in March and April 2021. The first was a large -scale outage at the Park Boulevard substation (PBS) on March 27 , affecting over 7,000 customers and lasting several hours. In this outage, a breaker was accidentally tripped by one of the Cit y’s electricians who was working on a maintenance project. Compounding the loss of power to customers were issues concerning the timeliness of public communication and customer call handling.

Discussion
Following these outages, the Utilities Department an d City Manager’s Office have taken several actions to review and follow -up on corrective actions to minimize future outages. This has included identification of key issues and regular progress meetings with City Manager’s Office, Utilities, Human Resources , and other offices involved with follow -up. In addition , many supporting meetings were held by senior managers, cross functional department representatives, and utility workgroups to identify and implement preventative measures.

Staff has i mplemented ch anges to utilities policies and processes to reinforce reliability in workflows. These improvements have been made to ensure that resources and procedures are in place for safety, while also recognizing th e importance of individual job respon sibilities. A number of utilities protocols have been updated; substation operations procedures, outage coordination for public safety power shutoffs and curtailments of the independent system operator (ISO). These protocols will be reviewed on an annual basis and more frequently as needed. The development of these protocols has increased the coordination and communication between staff members both within the utilities department and other internal departments. Front line training of utilities personnel is also occurring with a renewed emphasis 12 Packet Pg. 228

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on safety and operational procedures. The newly developed substation procedures have been “field tested” by substation team members to verify they are coherent and appropriate.

Staffing vacancies have also been reduced. Over the past several months the Utilities Department has successfully hired 3 utilit ies apprentice system operators, currently in training, bringing the Utilities System Operations staffing to 100% (5 of 5 filled positions ). The vacant Safety Officer position has also now been filled, following council approval to adjust the salary of the position to reflect a higher level of responsibility. The City is also exploring an option to supplement and expand safety-related services using consulting firms and to provide additional expertise in electrical utilities training and assessments. Over the past several months , other Utilities staff members have performed essential safety compliance related actions while leveraging training support from an existing contract specific to safety training.

During the review, gaps were identified with the current Outage Management System (OMS).

The Utilities department has initiated a process to replace the existing OMS w ith a planned selection in early 2022, with implementation by the end of 2022. In the interim, staff has put in place a new outage communications protocol to improve public notifications procedures that better integrates the cooperation between the City’s 9 -1-1 center, utility system operators, and public information staff. The call-taking functionality of the OMS has been improved to handle higher call volumes as well as provide more immediate feedback to customers. These improvements allow for more effective m eans to identify an outage and communicate to t he public.

In parallel with these efforts, the Utilities Department is proceeding with an internal reorganization to integrate engineering and operations functions within the two primary utility services: electrical/fiber and water/gas/wastewater. Whil e this reorganization effort has been planned for some time, as documented in the Utilities Strategic Plan and identified in the FY2022 Operational Budget, it is being accelerated by this ongoing improvement process.

Management and line staff within each utility are currently involved in operational reviews and teambuilding to ensure the new organizational units are able to provide seamless services when the new divisions are formally implemented in early 2022.

Stakeholder Engagement
In the Spring of 2021 , t he City Managers’ communications team worked with the Dire ctor of Utilities to create a blog ( Linked Document ) for keeping the community updated on how the City if mo ving for ward with the outage management imp rovements. Staff will continue to provide public information as needed to apprise stakeholders of ongoing efforts.

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Schedule of Meetings
Published January 4, 2022
This is a courtesy notice only. Meeting dates, times, and locations are subject to chang e. Almost all Palo Alto Council a nd some Standing Com mittee me etings are cablecast live on C hannel 26. If there ha ppens to be concurrent meetings, one meeting will be broadcast on Channel 29.

Until further notice, all meetings will be held virtually.

WEDNESDAY, JANUARY 5
Sp. Utilities Advisory Commission Meeting, 5 p.m.

THURSDAY, JANUARY 6
Architectural Review Board Meeting, 8:30 a.m.

MONDAY, JANUARY 10
Sp. City Council Meeting, 5 p.m.

WEDNESDAY, JANUARY 12
Planning & Transportation Commission Meeting, 6 p.m.

THURSDAY, JANUARY 13
Historic Resources Board Meeting, 8:30 a.m.

Human Relations Commission Meeting, 6 p.m.

MONDAY, JANUARY 17
City Council Meeting, 6 p.m.
(CANCELLED DUE TO HOLIDAY)
TUESDAY, JANUARY 18
Sp. Finance Committee Meeting, 6 p.m.

WEDNESDAY, JANUARY 19
Sp. Planning & Transportation Commission Meeting, 6 p.m.

THURSDAY, JANUARY 20
Architectural Review Board Meeting, 8:30 a.m.

Public Art Commission Meeting, 7 p.m.

MONDAY, JANUARY 24
Sp. Cit
y Council Meeting, 5 p.m.

TUESDAY, JANUARY 25
Parks and Recreation Commission Meeting, 7 p.m.

WEDNESDAY, JANUARY 26
Planning & Transportation Commission Meeting, 6 p.m.

THURSDAY, JANUARY 27
Historic Resources Board Meeting, 8:30 AM
TUESDAY, FEBRUARY 1
Finance Committee Meeting, 7 p.m.

WEDNESDAY, FEBRUARY 2
Sp. Utilities Advisory Commission Meeting, 5 p.m.

Persons with disabilities who requi re auxiliary aids or services in using City facilities or programs, or who would like information on the City’s compliance with the American s with Disabilities Act (ADA) of 1990, may contact: ADA Coordinator, City of Palo Alto, 650-329-2550 (vo ice) or 329-1199 (TDD), [email protected]. Listening assistive devices are availabl e in the Council Chamber s. Sign language interpreters will be provided upon request with 72 hours advance notice. Please advise the City Clerk's Office (650-329-2571) of meetings or changes by 3:00 p.m. on Wednesdays for inclusion in the following week’s schedule. a
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