Agenda packet — Palo Alto City Council, February 6, 2023 (part 1 of 3)

CITY COUNCIL and
PUBLIC IMPROVEMENT CORPORATION
Special Meeting
Monday, February 06, 2023
Council Chambers & Hybrid
5:00 PM
AMENDED AGENDA
Amended agenda items appear below in RED
Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org.

VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to [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 subject line.

PowerPoints, videos, or other media to be presented during public comment are accepted only by email to [email protected] at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted.

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

CALL TO ORDER
STUDY SESSION (5:00 – 6:00 PM)

1. Study Session on Palo Alto Link, the City’s New On‐Demand Transit Service AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:00 – 6:30 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.

CONSENT CALENDAR (6:30 – 6:35 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.

2. Approval of Minutes from the January 23, 2023 City Council Meeting

3. Adopt Revised Retiree Benefit Funding Policy (Formerly ‘Pension Funding Policy’) for the Financial Planning of Employee Pension and Other Post‐Employment Benefits (OPEB)/Retiree Healthcare Plans

5. Adoption of Memorandum of Agreements with International Association of Firefighters, Local 1319 and Service Employees International Union, Local 521; CEQA status—not a project
CITY MANAGER COMMENTS (6:35 – 6:50 PM)
RECESS CITY COUNCIL MEETING AND CONVENE PUBLIC IMPROVEMENT CORPORATION

MEETING
ACTION ITEM

6. Approval of Fiscal Year 2022 Palo Alto Public Improvement Corporation's Annual Financial Statement (6:50 – 7:00 PM)
RECONVENE CITY COUNCIL MEETING
ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters.

7. Discussion Regarding Gas Powered Leaf Blower Enforcement and Possible Direction to Prepare an Amendment to the Noise Ordinance (PAMC 9.10) and Resolution to Adjust Financial Penalties for Violations in Residential Neighborhoods to Facilitate Compliance. (Environmental review: not a project) (7:00 – 8:30 PM)

8. Review and Accept the FY 2024 ‐ FY 2033 Long Range Financial Forecast (LRFF) and FY 2024 Budget Development Guidelines (8:30 – 10:30 PM)
AA1. Approval of the 2023 City Council Priority Focus Areas, and ObjectivesAreas, Objectives, and Respective Major Projects for Calendar Year 2023 COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS

ADJOURNMENT
INFORMATION REPORTS

9. Biannual Report of Contracts Awarded by the City Manager, Procurement Officer or Other Designated Employees

10. 2022 City Council Priorities‐ Major Project Quarterly Update AMENDED AGENDA ITEMS
Items that have been added/modified from the original publication of the agenda are listed below. Any corresponding materials are appended to the end of the initial packet. If full items have been added to the Agenda, they will be denoted with a number staring with AA, meaning Amended Agenda item.

4. Approval of Professional Services Agreement with Townsend Public Affairs, Inc. (C23183770) in the Amount Not‐to‐Exceed $558,000 for State and Federal Legislative Advocacy Services and Grant Consulting and Compliance Services for a Period of Three Years with the Option to Renew for Two Periods of One Year Each; CEQA status—not a project Supplemental Report AA1. Approval of the 2023 City Council Priority Focus Areas, and ObjectivesAreas, Objectives, and Respective Major Projects for Calendar Year 2023
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to hybrid meetings via email, in person, teleconference, or by phone.

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

2. In person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item.

3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully.

You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.

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

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

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

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

Click to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833 AMERICANS WITH DISABILITY ACT (ADA)
Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in advance.

1 Special Meeting February 06, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
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CALL TO ORDER
STUDY SESSION (5:00 – 6:00 PM)

CONSENT CALENDAR (6:30 – 6:35 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.

2. Approval of Minutes from the January 23, 2023 City Council Meeting

MEETING
ACTION ITEM

ADJOURNMENT
INFORMATION REPORTS

9. Biannual Report of Contracts Awarded by the City Manager, Procurement Officer or Other Designated Employees

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

2. In person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item.

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

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

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

2 Special Meeting February 06, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
.

CALL TO ORDER
STUDY SESSION (5:00 – 6:00 PM)

CONSENT CALENDAR (6:30 – 6:35 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.

2. Approval of Minutes from the January 23, 2023 City Council Meeting

MEETING
ACTION ITEM

ADJOURNMENT
INFORMATION REPORTS

9. Biannual Report of Contracts Awarded by the City Manager, Procurement Officer or Other Designated Employees

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

2. In person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item.

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

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

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

3 Special Meeting February 06, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
.

CALL TO ORDER
STUDY SESSION (5:00 – 6:00 PM)

CONSENT CALENDAR (6:30 – 6:35 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.

2. Approval of Minutes from the January 23, 2023 City Council Meeting

MEETING
ACTION ITEM

ADJOURNMENT
INFORMATION REPORTS

9. Biannual Report of Contracts Awarded by the City Manager, Procurement Officer or Other Designated Employees

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

2. In person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item.

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

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

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

4 Special Meeting February 06, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
.

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CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: STUDY SESSION
Lead Department: Transportation
Meeting Date: February 6, 2023
TITLE
Study Session on Palo Alto Link, the City’s New On-Demand Transit Service.

RECOMMENDATION
Staff recommends that the City Council receive a Study Session regarding the launch of the City’s On-Demand Transit Service Palo Alto Link (PAL).

EXECUTIVE SUMMARY
This study session item provides a forum for questions and feedback, and an opportunity to increase awareness of our new on-demand transit service Palo Alto Link (PAL). The City selected vendor Nomad Transit, LLC, aka” Via”, to operate the service beginning on March 7, 2023, with a designated $2,500,000 in Measure B and local funding, for a term of 18 months. PAL will serve riders Monday through Friday, 8:00 AM to 6:00 PM. Unlike standard fixed route shuttle services, PAL will provide same-day mobile and phone booking and serve most of the City, deploying both hybrid and electric vehicles (EVs), with the intention to eventually transition fully to EV. PAL will connect passengers with destinations and transit for the single ride price of $3.50 and a discounted price of $1 for disabled, low-income, and youth. Weekly and monthly passes catering to commuters will also be available.

BACKGROUND/DISCUSSION
PAL will provide on-demand service Monday – Friday for a 10-hour service span 8:00am- 6:00pm. The service will operate within most of the City, with exceptions only to the east and west ends that house large open spaces and conservation lands. PAL will utilize nine (9) vehicles (7 active and 2 in reserve) with two (2) active wheelchair-accessible vehicles and one (1) in reserve. Two (2) electric vehicles (EVs) and four (4) hybrid van vehicles will be configured to carry passengers and will also have bike racks.

In contrast to the two fixed routes served by prior Palo Alto Shuttle services, the on-demand service will provide flexible routes and flexible-schedule transit service within most of the City.

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with the help of a web application. Door-to-door service will also be available for riders who may require extra assistance. The service will help address first-/last-mile challenges in Palo Alto and provide a convenient and affordable transportation option for residents, employees, and vulnerable/transit-dependent populations.

The most significant purpose of the project is to assist in post-pandemic recovery, including restoring mobility to vulnerable/transit-dependent populations. Additionally, the service model aims to support employees transitioning back into their office spaces through coordinating connections with the Caltrain peak hour schedule. Finally, the City is seeking to partner with Stanford Research Park, and others, to provide supportive services to local businesses and organizations.

Effective July 1, 2020, Palo Alto Free Shuttle services (both the Embarcadero and Crosstown shuttle) were discontinued due to citywide financial reductions. The two shuttles served numerous vulnerable and transit-dependent populations including seniors and students, an estimated 550 riders per day or 140,000 riders per year.

The 2016 Measure B Program office released the Innovative Transit Service Models Competitive Grant call-for-projects on October 5, 2020, making available $6.0 million for distribution. The City of Palo Alto applied for a grant on December 3, 2020, to implement an On-Demand Transit Service. The on-demand transit service grant application submitted was in alignment with the August 14, 2017 Palo Alto City Council motion to approve the Palo Alto Transit Vision Plan while directing staff to incorporate flex transit models and seek Measure B funds (link to motion). The VTA Board of Directors adopted the 2016 Measure B Transit Operations Program Category Guidelines at their October 5, 2017 meeting.

While funding is secured for 18 months of service, City and Via staff hope to continue the service and will be seeking out additional grant funds and partnership funding opportunities.

FISCAL/RESOURCE IMPACT
This item is a study session item only and does not have a financial impact. The City Council approved the contract for this service with CMR #14959.

POLICY IMPLICATIONS
Provision of on-demand transit service supports the City’s Sustainability and Climate Action Plan goals to reduce greenhouse gas emissions and is supported by the following Comprehensive Plan policies and programs:

Policy T-1.1: Take a comprehensive approach to reducing single-occupant vehicle trips by involving those who live, work and shop in Palo Alto in developing strategies that make it easier and more convenient not to drive...

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Policy T-1.6: Encourage innovation and expanded transit access to regional destinations, multi-modal transit stations, employment centers and commercial centers, including those within Palo Alto through the use of efficient public and/or private transit options such as rideshare services, on-demand local shuttles and other first/last mile connections.

Program T1.6.1: Collaborate with transit providers, including Caltrain, bus operators and rideshare companies, to develop first/last mile connection strategies that boost the use of transit and shuttle service for local errands and commuting...

Policy T-1.13: Encourage services that complement and enhance the transportation options available to help Palo Alto residents and employees make first/last mile connections and travel within the city for daily needs without using a single-occupancy vehicle, including shuttle, taxi and ridesharing services.

Program T1.13.1: Investigate a pilot program to subsidize a taxi, rideshare or transit program for Palo Altans to get to/from downtown, including offering education and incentives to encourage users.

STAKEHOLDER ENGAGEMENT
Public engagement began in early 2023 to alert the community to the upcoming availability of the new service in March. Stakeholders who will be targeted for notification of the service include Caltrain riders, commuters to Palo Alto, service providers targeting older adults, senior living communities, youth service providers, neighborhood groups, etc. Community engagement and marketing activities may include tabling at community events and destinations (Farmer’s Market, Caltrain stations, grocery stores) and social media campaigns (NextDoor, Facebook, Uplift Local, local newspapers, City blog posts, etc.).

ENVIRONMENTAL REVIEW
This program is not considered a project under CEQA because it has no potential for resulting in either a direct or reasonably foreseeable indirect change in the environment. If the program is found to be a project under CEQA, the program is exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The program, which proposes no physical changes and would support transit ridership, thereby reducing greenhouse gas emissions, would have no or only a de minimis impact on the environment.

APPROVED BY:

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Philip Kamhi, Chief Transportation Official
Report #: 2301-0787
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CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: February 6, 2023

TITLE
Approval of Minutes from the January 23, 2023 City Council Meeting

RECOMMENDATION
It is recommended that the minutes be reviewed and approved.

ATTACHMENTS
Attachment A: Minutes January 23, 2023
APPROVED BY:

Lesley Milton, City Clerk
Report #: 2301-0832
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CITY COUNCIL

DRAFT ACTION MINUTES

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Special Meeting
January 23, 2023
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:00 P.M.

Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Present Remotely: None

Absent: None

Special Orders of the Day
AA1. Proclamation for Lunar New Year

Closed Session

1. CONFERENCE WITH CITY ATTORNEY
Subject: Written Liability Claim Against the City of Palo Alto by James Goodrich (Claim No. C22-0013)
Authority: Government Code Section 54956.9(e)(3)

2. CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Sandra Blanch, Nicholas Raisch, Molly Stump, and Caio Arelleano)

Employee Organization: Service Employees International Union, (SEIU) Local 521, Utilities Management and Professional Association of Palo Alto (UMPAPA)Palo Alto Peace Officer’s Association (PAPOA), Palo Alto Police Management Association (PMA), International Association of Fire Fighters (IAFF) local 1319, Palo Alto Fire Chiefs Association (FCA),; Authority: Government Code Section 54957.6 (a) MOTION: Council Member Veenker moved, seconded by Council Member Burt to adjourn to Closed Session.

MOTION PASSED: 7-0
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(Sp.) City Council Meeting
Draft Action Minutes: 01/23/2022

Council went into Closed Session at 5:05 P.M.

Council returned from Closed Session at 7:21 P.M.

Mayor Kou indicated there was no reportable action

Study Session

3. Presentation of the Annual Community Survey Results Action: None taken

Agenda Changes, Additions and Deletions
No changes

Public Comment

Consent Calendar
Council Member Tanaka registered a no vote on Agenda Item Number 4, 5, 10.

Council Members Burt, Stone, Tanaka requested to pull item 7.

MOTION: Council Member Burt moved, seconded by Vice Mayor Stone to approve Agenda Item Numbers 4-6, 8-12.

MOTION SPLIT FOR PURPOSES OF VOTING:

AGENDA ITEMS 6, 8-12 PASSED: 7-0
AGENDA ITEMS 4, 5, 10 PASSED: 6-1, Tanaka No

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(Sp.) City Council Meeting
Draft Action Minutes: 01/23/2022

4. Approval of a General Services Agreement Contract Number C23185605 with Linko Technology, Inc. for the Amount of $219,447 Over a Seven-Year Term for Pretreatment Program Software

5. Review and Acceptance of Annual Status Report on Development Impact Fees for Fiscal Year 2022 and Adoption Resolution 10092 Making Statutory Findings under Govt. Code section 66001

6. Approval of Contract Number C23186552 With Downtown Streets Team, Inc. for a Total Not-to-Exceed Amount of $160,477 for Fiscal Year 2023 for Workforce Development Services

7. Parks and Recreation Commission Recommendation to Adopt an Ordinance Amending PAMC Section 22.04.220 to Regulate Electric Bicycles and Electric Coasting Devices in Parks and Open Spaces (item continued)

8. Acceptance of the Macias Gini & O’Connell Audit of the City of Palo Alto’s Financial Statements as of June 30, 2022 and the Management Letter; Approval of the FY 2022 Annual Comprehensive Financial Report (ACFR); and Amendments to the FY 2022 Budget in Various Funds, as Recommended by the Finance Committee

9. Adopted Resolution 10093 to Extend the Appointment of Adriane D. McCoy of Baker Tilly US, LLP as Interim City Auditor Through April 30, 2023

10. Approval of Contract with CivicPlus, LLC (C23186719) for CivicRec Recreation Management Software for a Period of Six Years in an Amount Not to Exceed $735,065 (Including a 5% Contingency for Additional Services Amount of $29,229)

11. Adopted Resolution 10094 Establishing the Council Annual Calendar of Meetings, Breaks and Council Events for Calendar Year 2023

12. Approval of Recommendations on Process for 2023 Council Priority Setting Retreat

City Manager Comments
City Manager Ed Shikada

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(Sp.) City Council Meeting
Draft Action Minutes: 01/23/2022

Action Items

13. PUBLIC HEARING / QUASI -JUDICIAL. 575 Los Trancos [21PLN -00196]: Adoption of a Record of Land Use Action Approving a Major Site and Design Application for the Construction of a new 7,245 Square Foot Single -Family Residence With a new 895 Square Foot Accessory Dwelling Unit and Associated Site Improvements, on a 5.38 -Acre Site. Zoning District: Open Space (OS). Environmental Review: Adoption of a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program.

Council member Lauing recused himself from the item
Public Hearing opened at X:XX P.M.

Public Hearing closed at 10:45 P.M.

MOTION: Council Member Burt moved, seconded by Mayor Kou to:
1) The Council refer this item back to the PTC for consideration of the following as the current proposal does not allow us to make the findings of section C. Request that the PTC evaluate project design modifications to meet the following objectives:
a) Evaluate a project design that provides for approximately 50-foot setback from the top of bank
b) Effective bird-safe glazing treatment of all glass surfaces achieving the American Bird Conservancy Threat Factor rating of 15.
c) Eliminate fencing that could impede wildlife movement along the creek. d) Minimize nighttime lighting along the riparian corridor and allow only minimal lighting in all other locations. Lighting should not interfere with wildlife movement through the landscape, and all outdoor lighting should be limited to Correlated Color Temperature of 2700 Kelvin or less, and extinguished at 11PM.
e) Pool should be covered and fenced in a way that ensures that small animals, such as amphibians and reptiles cannot enter the swimming pool. 2) Request that staff return to Council with a plan and timeline amend the Zoning code Comprehensive Plan Policy N.3.3. and Program N3.3.1
MOTION PASSED: 4-2, Tanaka, Lythcott-Haims No, Lauing Recused

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(Sp.) City Council Meeting
Draft Action Minutes: 01/23/2022

14. City Council discussion and direction regarding wage requirements for the contract for next Janitorial services
A. Review and Provide Direction on Wage and Benefits Requirements for Inclusion in a New Janitorial Services Request for Proposal (RFP)
B. Responsible Contracting Standards Colleague's Memo (Stone & Burt)

ACTION: public comments accepted, but item continued to a future meeting

Council Member Questions, Comments and Announcements

Adjournment: The meeting was adjourned at 12:19 AM. in honor of the victims of the tragedy in Monterey Park, CA on January 21, 2023.

ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)

2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section

2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423 , the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.

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CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: CONSENT AGENDA
Lead Department: Administrative Services
Meeting Date: February 6, 2023

TITLE
Adopt Revised Retiree Benefit Funding Policy (Formerly ‘Pension Funding Policy’) for the Financial Planning of Employee Pension and Other Post-Employment Benefits (OPEB)/Retiree Healthcare Plans

RECOMMENDATION
The Finance Committee and Staff recommend that the City Council adopt revisions to the Retiree Benefit Funding Policy (formerly ‘Pension Funding Policy’) used to inform long term financial planning of these benefits.

EXECUTIVE SUMMARY
This report concludes a series of meetings with the Finance Committee to review the status of pension and Other Post-Employment Benefit (OPEB) “retiree healthcare” plans and the Pension Funding Policy that guides the long-term financial planning of these benefits. The revisions to this policy, recommended for Council adoption as unanimously approved by the Finance Committee include:
1) Modify title from “Pension Policy” to “Retiree Benefit Policy” to recognize the inclusion of retiree healthcare plans
2) Formalize changes approved by the City Council since adoption of the policy:
a. Add language for proactive planning of retiree healthcare plans b. Reduce the discount rate used to calculate Section 115 Trust contributions, from

6.2% to 5.3% for pension and 6.25% to 5.75% for retiree health 3) Modify the investment strategy of Section 115 Trusts a. Change the Pension Trust portfolio from Moderately Conservative to Balanced b. Invest in a more conservative portfolio once plans are 75-80% funded or the City’s actuary recommends disbursements
4) Modify the reporting requirement for periodic actuary review a. Extend reporting from 3 to 4 years to include plan changes resulting from CalPERS Asset Liability Management (ALM) and Experience Studies b. Include a recalculation of the amortization schedule for the Unfunded Accrued Liability (UAL) at the lower discount rate
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BACKGROUND
The City has taken several proactive steps to address rising pension costs and long-term liabilities, including cost-sharing in labor agreements, and establishing an irrevocable Section 115 Pension Trust “Pension Trust” ( CMR 7553 1), and adopting a Pension Funding Policy ( CMR 11722 2). The Pension Policy is an evergreen policy that automatically renews until goals are complete, subject to modification at the City Council’s direction. The policy identifies a path forward for the City to address its pension obligations on an ongoing basis, ensure prudent and proactive financial planning, and avoid significant impacts to service delivery.

The Pension Policy sets the following goals and principles:

Funding Goal and Timeframe: Target of reaching a 90 percent funded status by FY 2036 (within 15 years)
Funding Components: 1) Fund the Normal Cost (“pay go” costs) of annual pensions at a more conservative discount rate than CalPERS; 6.2% as compared to 7.0% used by CalPERS at policy adoption. 2) City Manager discretion to make additional contributions from excess Budget Stabilization Reserve (BSR) above the City Council approved target BSR level.

Use of Funds: 1) City Manager must identify the impacts on the funding goal and timeframe to modify the transmission of contributions to the PARS Trust Fund. 2) Any transmission of funds from PARS to CalPERS will require City Council approval.

Reporting: 1) Every three years, staff will consult with an actuary to inform the City Council on the progress the City has made towards its goal. 2) Staff will report to the City Council through the annual budget process on the status of the PARS section 115 pension trust fund, recommended contributions to the PARS fund, and potential transmission of any funds from PARS to CalPERS for the coming fiscal year
Consistent with reporting requirements of the policy and City Council direction, periodic actuary reviews are conducted to assess and respond to changes impacting the City’s pensions and retiree healthcare plans and the funding available to meet those benefit costs. As part of this process, the policy is evaluated for potential revisions, including the formalization of changes approved by the City Council since adoption of the policy, and budgetary practices used to inform the financial planning of these benefit costs. To facilitate in this review, staff engaged in several meetings with the Finance Committee, outlined below:

September 20, 2022: Review the California Public Employees’ Retirement System (CalPERS) Pension Annual Valuation Reports as of June 30, 2021 (CMR 146283):
1 City Council Staff Report January 23, 2017 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2017/7553.pdf 2 City Council Staff Report November 30, 2020 https://www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2020-2/id-11722.pdf 3 Finance Committee Staff Report November 20, 2022 https://www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/agendas-minutes/finance-committee/2022/20220920/20220920pfcs.pdf Item 3
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•Annual reports issued by CalPERS provide an update on the assets and accrued liabilities of plans, determine minimum employer contributions for the coming fiscal year (FY 2024), and communicate significant changes in actuarial assumptions or policies. •CalPERS plans experienced favorable outcomes due to a 21.3 percent investment return; this report does not include the impact from a preliminary investment loss of 6.1 percent or higher expected for the period ending June 30, 2022. •CalPERS completed an Asset Liability Management (ALM) and Experience Study in November 2021 resulting in several notable outcomes, such as reducing the discount rate from 7.0 to 6.8 percent and changing the asset allocation of investments. •CalPERS reports do not contemplate policy measures such as cost-sharing with employees and accumulated savings in the Pension Trust.

October 18, 2022: Review Pension and Other Post-Employment Benefits (OPEB) (“retiree healthcare”) Trust Funds with Plan Providers (CMR 148294):
•The City maintains two Section 115 Trusts to prefund retiree benefit costs: 1) the “Pension Trust” administered by the Public Agency Retirement System (PARS); and 2) the California Employers’ Retiree Benefit Trust (CERBT) Fund for OPEB plans administered by CalPERS. •The City has discretion to select the risk tolerance of investments and control the inflow/outflow of funds; the Finance Committee reaffirmed policy direction to transmit Additional Discretionary Payments (ADPs) from the Pension Trust to CalPERS for amounts that exceed one year employer payment, this is expected to occur in the next 2-3 years. •Report includes a detailed overview of trust status, including historical performance, risk profiles of portfolios, and other investment options for consideration.

December 6, 2022: Review Revised Actuary Pension Analysis using Alternative Assumptions to CalPERS and Review Potential Modifications to the Pension Funding Policy (CMR 147485):
•The City engaged with outside actuary Foster & Foster (formerly Bartel and Associates) to complete a comprehensive analysis of the City’s pension plans, progress towards meeting funding goals, and other risk mitigation strategies.
•The analysis considers alternative economic and demographic assumptions to CalPERS, including a preliminary investment loss for the period ending June 30, 2022, cost-sharing with employees, and use of accumulated savings in the Pension Trust. •Actuary results project that the City will meet the 90 percent funded goals by FY 2034 (Miscellaneous plan) and FY 2036-37 (Safety plan); the City’s practice of transmitting excess one-time savings will help reach goals sooner.

DISCUSSION
The Finance Committee and staff recommend that the City Council adopt revisions to the policy 4 Finance Committee Staff Report October 18, 2022 https://www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/agendas-minutes/finance-committee/2022/20221018/20221018pfcs.pdf 5 Finance Committee Staff Report December 6, 2022 https://www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/agendas-minutes/finance-committee/2022/20221206/20221206pfcsm-late-packet.pdf Item 3
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that formalize changes approved by the City Council since adoption of the policy and modify budgetary practices that inform long term financial planning of these benefits. A summary of the current Pension Policy and revisions is included in Attachment A and discussed in more detail in this report. A red-lined copy of the policy is included in Attachment B.

Add proactive planning for Other Post-Employment Benefits (OPEB)/retiree healthcare to policy, consistent with City Council actions:

The Pension Policy does not explicitly include language for Other Post-Employment Benefit (OPEB)/retiree healthcare plans. As directed by the City Council, staff have worked to align the City’s policy goals for pension and retiree healthcare liabilities since the adoption of the Pension Policy. Therefore, this report includes a revision to the policy to add language for proactive funding of retiree healthcare benefits approved by the City Council and change the title from ‘Pension Funding Policy’ to ‘Retiree Benefit Funding Policy’.

Assume a move conservative discount rate for supplemental contributions from 6.2 percent to 5.3 percent (Pension) and from 6.25 percent to 5.75 percent (OPEB), as approved by the City Council:

Beginning in FY 2023, the City Council approved reducing the discount rate to calculate supplemental pension contributions from the previously approved rate of 6.2 percent to 5.3 percent over two years; FY 2023 is a transitional year equivalent to a rate of approximately 5.8 percent. These actions more closely align the discount rate with the CalPERS Asset Liability Management (ALM) study completed in November 2021, which includes a survey of external asset managers and consultants to gain expert projections on expected market returns. In the most recent ALM study, the median expected returns of survey participants were 5.3 percent (10-year) and 6.2 percent (20-year). Additionally, the City Council approved the use of a lower discount rate for supplemental OPEB contributions from 6.25 percent to 5.75 percent, and alternative assumptions to align with known variables such as investment returns (CMR 14112 as amended by CMR 145026).

A goal of this funding element is to identify a discount rate for the calculation of the normal cost of pensions that best aligns with actual investment returns, mitigating the creation of new liability bases resulting from these discrepancies to the extent possible. Future adjustments are anticipated to align planned contributions with anticipated economic and demographic assumptions, including but not limited to expected investment returns, subject to City Council approval. Staff expects to use proactive measures to inform changes, such as the ALM study and other external expert projections. Additionally, staff will continue to monitor any major factors that contribute to the creation of new liabilities in future CalPERS reporting.

Add language for investment strategy of Pension and OPEB Trusts, including more conservative investment allocations once 75-80% funded, or when actuary recommend disbursements:

As discussed with plan providers at the October 18, 2022 meeting, investments made in these funds are required to be used to pay retiree pension and healthcare costs respectively. However, 6 Finance Committee Staff Report June 7, 2022 https://www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/agendas-minutes/finance-committee/2022/20220607/20220607pfcsm-final.pdf Item 3
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the City has the discretion to select the investment risk tolerance and control the inflow and outflow of funds. Ultimately, the balance maintained, and investment strategy(s) should depend on the intended use of the funds.

As prefunding strategies move the City closer to meeting funded status goals, staff recommends revising the investment strategy for these funds. When actuary valuations recommend disbursements or when the balance-maintained approaches 75-80 percent funded status, the investment strategy should be diversified with an intention of ensuring both stability and growth of the assets versus an only growth focused goal. This strategy is intended to preserve assets and mitigate against volatility in the market when the funds are expected to be disbursed.

Contributions to the OPEB Trust are intended to generate long-term asset growth through accumulated contributions until returns are sufficient to contribute to a portion of the annual “pay-go” costs. In consultation with CERBT representatives, staff recommends setting aside 2-3 years of estimated disbursements in a more conservative portfolio. The alternative assumptions approved by the City Council for development of the FY 2023 and FY 2024 budget do not recommend this type of disbursement over the next ten years. Staff expects to monitor the status of disbursements in future valuations; the next valuation will be completed as of June 30, 2023 for the development of the FY 2025 and FY 2026 budget.

Change the Pension Trust Portfolio from Moderately Conservative to Balanced:

The City’s Pension Trust is invested in a Moderately Conservative portfolio, this is the second most conservative of five (5) portfolios: Conservative, Moderately Conservative, Moderate, Balanced, and Capital appreciation. This report includes a recommendation to shift funding to a Balanced portfolio, which offers higher expected returns.

The City's CERBT Fund is invested in a Strategy 1 portfolio, which offers the highest expected return of three (3) portfolios: Strategy 1, Strategy 2, and Strategy 3. Changes to the investment portfolio selection(s) do not require additional budgetary action, as funds may be moved from one portfolio to another at the City’s discretion.

Modify actuary reporting from 3 to 4 years to align with CalPERS Asset Liability Management (ALM) process and Experience Study:

Every four years, CalPERS completes a comprehensive Asset Liability Management (ALM) process to review the capital market assumptions and strategic asset allocation to ascertain whether a change in the discount rate, investment profile, and other economic assumptions is warranted.

Additionally, the Actuarial Office completes an Experience Study to review pension demographics for potential modification. This most recent study was completed in November 2021 and resulted in notable changes to reduce the discount rate from 7.0 to 6.8 percent, reduce price inflation assumptions from 2.5 to 2.3 percent, and revise the asset allocation to target 1/3 investment in private assets, add 5 percent leverage, and reduce public equity exposure. Revising policy requirements for actuary reporting from 3 to 4 years will align the studies and ensure that the City’s analysis includes the most up to date changes approved by the CalPERS board, including Item 3
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changes to economic and demographic assumptions that inform overall liability and employer cost.

Modify actuary reporting to include a recalculation of the amortization schedule for the Unfunded Accrued Liability (UAL) using the lower discount rate:

The annual payment to CalPERS reflects two billing components:
1) Normal Cost (‘pay-go’) for current employees, and
2) Unfunded Accrued Liability (UAL).

The UAL is realized when actual experience of plans differs from assumptions and is paid over a 20-year amortization timeline. As outlined in the policy, the City uses a lower discount rate as compared to CalPERS to calculate the Normal Cost and contributes amounts exceeding the required payment to the Pension Trust. At the December 6, 2022 meeting, the Finance Committee requested that actuary reporting also include a recalculation of UAL at the lower 5.3% discount rate. This recalculation is provided for informational purposes and does not impact policy-directed funding levels (Attachment C).

FISCAL/RESOURCE IMPACT
Revisions and updates to the City’s Pension Funding Policy will inform the development of the annual budget, financial planning and analysis of operation, and other long term financial planning. The funding elements of this policy are intended to support the financial sustainability of the organization by limiting the risk of generating long-term liabilities due to actual pension and retiree healthcare plan experience that differs from assumptions, such as lower than anticipated investment returns.

STAKEHOLDER ENGAGEMENT
Staff continues to use external consultants for updates on the status and forecast of long-term liabilities associated with pension and retiree healthcare programs. As in prior years, these results are used to inform funding policy discussions with the Finance Committee and City Council. All communication is structured around public hearings to facilitate opportunities for community input and provide guidance to staff in the budget development process.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the status update and revisions to the City’s retiree benefit policy is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).

ATTACHMENTS
Attachment A: Pension Funding Policy Overview and Recommended Revisions Attachment B: Red-lined Pension Policy
Attachment C: Unfunded Accrued Liability (UAL) Amortization Schedule at 5.3% Discount Rate APPROVED BY:

Kiely Nose, Administrative Services Director
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Report #: 2212-0513
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ATTACHMENT A: Pension Funding Policy Overview and Recommended Revisions CalPERS Pension (baseline) Current Pension Policy Recommended Policy Revisions Title - Pension Funding Policy (-) Retiree Benefits Funding Policy; add similar language for OPEB Funded
Status
100% 90% -
Time
frame
30 years 15 Years (FY 2036) -
Funding
Components
Actuarial Determined
Contribution (ADC):
▪ Normal Cost (NC) or
‘pay-go’, and
▪ Unfunded Accrued
Liability (UAL) amortized
over 20 years
(gains/losses)
(+) Use 6.2% discount rate for
the calculation of Pension
Normal Cost, more conservative
than CalPERS 7.0%
(+) 50% of excess BSR may be
allocated for pension costs (all
funds contribute equally)
▪ (+) Use the CalPERS ALM review or other external investment projections to inform discount rates for the calculation of supplemental contributions ▪ (+) Consider alternative calculations for economic and demographic assumptions to align with anticipated experience
Pensions (FY23/FY24)
▪ (-) Discount rate reduced from

6.2% to 5.3% for NC, phase-in over
two years
OPEB (FY23/24)
▪ (+) Discount rate reduced from 6.25%
to 5.75% for ADC
▪ (+) Alternative Assumptions1
Employee Contributions (+) Cost-sharing with employees - - Investment Returns - - -
Investment Alternatives - (+) Pension Trust invested in a Moderately Conservative
portfolio
(+) OPEB/Retiree Healthcare
Trust (CERBT) invested in a
Strategy 1 portfolio
Pension Trust
▪ (-) Pension Trust invested in a
Balanced portfolio
▪ (+) More conservative strategy
when reach 75-80% funded status
OPEB Trust
▪ (+) More conservative strategy when
reach 75-80% funded status or when
actuary recommends disbursements
(first to occur); set aside 2-3 years of
estimated disbursements
1 Finance Committee on June 7, 2022 approved several alternative assumptions for OPEB ADC including a zero percent return for 2 021-22 (one-time), 5.75% discount rate (6.25% assumed for Strategy 1), shortened amortization from 22 to 15 years, and additional funding for new staff (CMR 14112 as amend ed by CMR 14502)
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ATTACHMENT A: Pension Funding Policy Overview and Recommended Revisions

CalPERS Pension (baseline) Current Pension Policy Potential Policy Revisions Allowable Uses
of Funding
The CalPERS Trust is used to
pay retiree pension benefits
for miscellaneous and safety
plans and does not
contemplate use of the
City’s Pension Trust
Use of Pension Trust to be
addressed through annual
budget process or separate City
Council approved action. City
Manager to identify Impacts to
funding goal and timeframe

Additional Discretionary
Payments (ADPs) from PARS to
CalPERS for amounts exceeding
1-yr employer contribution
Pension Trust
▪ (+) Rate stabilization to smooth
volatility in employer
contributions, or in difficult
economic times

OPEB Trust
▪ (+) Actuarial determined disbursements
recommended to fund a portion of the
‘pay-go’ costs once investment goals
are met (above)
Reporting
Requirements
- Every three years, staff will
consult with an actuary to
inform the City Council on the
progress towards goals
▪ (-) Every four years; align with the CalPERS ALM study - Status of Pension Trust
reported in the annual budget
process, including
recommended contributions
and potential ADPs for the
coming fiscal year
- OPEB Trust
▪ (+) Status of OPEB Trust reported bi-
annually using outside actuary
consultancy services (current practice)
(+) Indicates that this is in addition to the step to the left while (-) indicates that this is instead of the step to the left.

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City of Palo Alto - Pension Retiree Benefit Funding Policy Determination of an appropriate level for proactive Pension and Other Post-Employment (OPEB)/Retiree Healthcare Funding is a policy decision. The overarching goal of a Pension Retiree Benefit Funding Policy is to ensure that the City of Palo Alto avoids service-delivery crowd-out by increasing annual pension and retiree healthcare costs. This must be balanced against immediate impacts to service delivery in order to fund proactive contributions.

Pension: The City is statutorily required to make the CalPERS Actuarial Determined Contribution (ADC) on an annual basis. The ADC is made up of two parts, the Normal Cost (NC), which represents the pay-as-you-go portion of costs, and the Unfunded Accrued Liability (UAL) payment, which represents the catch-up portion of costs. CalPERS currently calculates both the NC and the UAL based on a discount rate of 7.06.8%. CalPERS amortizes any difference between investment returns and that discount rate as part of its UAL calculation over 20 years. In a year when CalPERS does not meet its target (loss) the City has to pay more over the next 20 years. In a year when CalPERS exceeds its target (gain) the City would be able to pay less over the next 20 years. The timeframe of 20 years for amortizing gains and losses is recent; they were amortized over 30 years through the June 30, 2018 valuation).

OPEB/Retiree Healthcare: Bi-annually, the City engages actuary consultancy services to calculate the annual ADC to the OPEB Trust for the coming two fiscal years. Contributions to the trust are voluntary and used to generate returns to pay the liability.

Additionally, the City recognizes the importance of ensuring that pension and retiree healthcare obligations included in the City’s financial reports, such as the Comprehensive Annual Financial Report (CAFR)Annual Comprehensive Financial Report (ACFR), are consistent with CalPERS.

Reports such as the CAFRACFR impact the City’s credit rating and thereby influence areas such as bond financing that the City may seek to obtain.

However, the City also recognizes that CalPERS calculated annual costs are based on a discount rate, annual rates of return, and other variables that might not align with actual experience nor perhaps with expected experience. To address these shortcomings, the City is establishing established a Pension Retiree Benefit Funding Policy to guide proactive pension and retiree healthcare contributions to the City’s section 115 Trusts:. • Pension Trust Fund, administered by the Public Agency Retirement Services (PARS); and • California Employers’ Retiree Benefit Trust (CERBT) Fund for the OPEB plans, administered by CalPERS.

This policy provides direction to the City regarding a desired funding target in relation to CalPERS and OPEB actuary valuations, the timeframe over which to achieve that target, and actions that are required until the target is met. There are contingencies that provide an additional range of options if certain circumstances are met and some that require additional actions if other criteria are satisfied.

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Funding Goal and Timeframe: Through this policy, the City’s target is to fund 90% of the CalPERS and OPEB actuary determined liability by FY 2036. The City will strive to reach the target of 90% of the CalPERS determined liability within( 15 years timeframe). If the City only paid the CalPERS ADC it would take at least 30 years to reach full funding of the CalPERS determined liability. CalPERS’ 30-year timeframe to reach full funding is also predicated on every single one of their actuarial assumptions materializing. Thus, a 15-year timeframe to fund 90% of the CalPERS determined liability represents a commitment from the City above and beyond the CalPERS ADC.

Funding Components: In order to achieve the target of 90% funding by FY 2036, the City will calculate what the Normal Cost portion of annual pension costs would be if a discount rate of

6.2% were used instead of the CalPERS rate for the Miscellaneous and Safety Groups across the organization. use the CalPERS ALM survey or other external investment projections to inform discount rates for the calculation of Pension (NC only) and OPEB (Total ADC), subject to City Council approval; this rate is expected to differ from the rate assumed by CalPERS. This additional cost will be included as part of the City’s standard budget process and transmitted to the City’s Irrevocable section 115 PARS Pension Trust Fund (PARS Trust Fund or PARS) and CERBT Trust Fund. Should the City reach its goal of 90% funding before FY 2036, the City Manager will report the status to the City Council with a recommendation on whether the practice should be continued, modified, or discontinued. The City Manager must identify the impacts on the funding goal and timeframe to modify the transmission of the additional contributions to the PARS and CERBT Trust Funds.

In addition to the contributions required by this Pension Funding Policy, the City will examine additional opportunities for proactive contributions to the PARS and CERBT Trust Funds.

Furthermore, the City Manager will include recommendations on whether funding should be transmitted from PARS to CalPERS as part of the annual budget process. This may change from year-to-year depending on the circumstances and level of funding accumulated. Some years may result in accumulating additional funding in PARS, while others may result in transferring an amount greater than a single year of additional contributions, calculated through the lower discount rate, to CalPERS. City Council approval is required for use of accumulated funds in PARS either to CalPERS as an Additional Discretionary Payment (ADP) or to offset a portion of the standard ADC.

An additional action that will does not require City Council approval is transfer of excess Budget Stabilization Reserve (BSR) above 18.5% to the PARS Trust Fund. The BSR Policy will be amended to confer discretion to the City Manager to make this transfer. The BSR Policy currently confers discretion to the City Manager to transfer excess BSR above 18.5% to the Infrastructure Reserve. Once amended, the BSR Policy will confer authority to the City Manager to proactively fund infrastructure and pension obligation needs through transfers to the Infrastructure Reserve and to the PARS Trust Fund. Additionally, through standard reports to the City Council (such as Year-End, Mid-Year, or another City Manager’s Report) the City Attachment B: Redlined Pension Funding Policy
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Manager will include actions for additional contributions from funds other than the General Fund to maintain alignment with the contributions from the General Fund via excess BSR. City Council approval is required for these contributions from funds other than the General Fund.

The City will work to proactively monitor its pension funding position through not only its CalPERS and OPEB actuary reports but also by continuing to use an outside actuary as a consultant to model different scenarios. The City will continue to transmit the CalPERS reports on an annual basis and OPEB actuary reports on a bi-annual basis.

Once every three four years, the City will consult with an outside actuary to provide an update on the progress the City has made towards the goal of reaching a funding goal of 90% funded status of funding of the CalPERS determined liability by FY 2036 and update the City Council.

Additional actions may come out of those reports and discussions with the City Council.

Service Delivery Outcomes: The goal of the Pension Retiree Benefit Funding Policy is to prevent service delivery crowd-out by the increased costs of pension and retiree healthcare obligations.

If the City’s efforts to proactively contribute to the long-term pension and retiree healthcare obligations would result in service delivery impacts in the short-term, the City Manager will identify those impacts and recommendations to mitigate them, as appropriate, through the budget development process.

Fiscal Impacts: If the General Fund’s revenues are projected to decline more than 7.5% year- over-year, the City Manager will return to the City Council with recommendations addressing the implications for the City’s proactive funding contributions for the coming year through the budget development process.

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CONTRIBUTION PROJECTIONS - MISCELLANEOUS
Impact of 5.3% Discount Rate Change
Attachment C: Unfunded Accrued Liability (UAL) Amortization Schedulate at 5.3% Discount Rate  
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CONTRIBUTION PROJECTION - SAFETY
Impact of 5.3% Discount Rate Change
Attachment C: Unfunded Accrued Liability (UAL) Amortization Schedulate at 5.3% Discount Rate  
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CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: Consent
Lead Department: City Manager
Meeting Date: February 6, 2023

TITLE
Approval of Professional Services Agreement with Townsend Public Affairs, Inc. (C23183770) in the Amount Not-to-Exceed $558,000 for State and Federal Legislative Advocacy Services and Grant Consulting and Compliance Services for a Period of Three Years with the Option to Renew for Two Periods of One Year Each; CEQA status—not a project.

RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or designee to execute a Professional Services Agreement Contract No. C23183770 with Townsend Public Affairs, Inc. to perform state and federal legislative advocacy services and grant support and compliance services for a term of three (3) years, with the option to review for two periods of one (1) year each, in the amount not-to-exceed $558,000.

EXECUTIVE SUMMARY
If approved, this professional services agreement with Townsend Public Affairs, Inc. (TPA) will provide state and federal legislative advocacy and grant support and compliance services to the City over the coming three years. TPA was selected through a competitive solicitation process based on the firm’s proposed strategic and collaborative approach to supporting the City’s legislative advocacy needs and pursuit of grant opportunities. The terms of the professional service agreement include the option to renew for two periods of one (1) year each at the City Manager’s discretion based on TPA’s performance (considering Council feedback on services during the length of the contract).

BACKGROUND
In fall 2022, a Request for Proposals (RFP) was conducted for grant consulting and legislative advocacy professional services. The project scope of services – seeking and submitting grant applications and legislative advocacy work – are closely related, therefore the RFP was jointly led by the City Manager’s Office and the Administrative Services Department (ASD). The scope was structured as a multi-award opportunity where the City’s expectation is that regardless of which Item 4
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firms are selected, that the firms will work in partnership with one another and the City will advance the entire ecosystem of advocacy and grant services for the City. The chart below describes the relationships of this work.
*The 3 green circles all relate to the grant consulting tasks. They are listed as 3 separate circles to show that support related to grants includes more than just finding grants for the City.

Legislative Advocacy
Palo Alto has had a firm advocating on behalf of the City in both Sacramento and Washington, DC ongoing since the early 2010s. The firms use their established relationships in the State and Federal Capitals to ensure that Palo Alto’s needs and positions are known and considered in the decision-making process. The existing contracts for State and Federal advocacy services expired on December 31, 2022 after being extended a few times throughout the length of the contracts.

The City Council adopted a legislative workplan in addition to the 2023 Legislative Guidelines on November 7, 2022 1. The workplan included increased interaction between the full Council and the legislative advocates during the legislative session. In recent years, the lobbyist has made at least quarterly updates to the Policy and Services Committee and updates to the full Council as action was needed on legislative positions. In the Council approved 2023 workplan, the frequency of legislative discussions with the full Council have increased to replace the Committee-only discussions. The 2023 workplan also includes a touch point early in the year with legislators representing Palo Alto (intended as a legislative reception but this year it will likely be individual legislator visits to Council due to scheduling difficulties). 1 Report (pdf page 168; CMR 14913): https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20221107/20221107pccsm-amended-linked-q.a-

2.pdf.

Minutes: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city- council-agendas-minutes/2022/20221107/20221107amccsm.pdf Item 4
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Grant Support Consultant Services
In summer 2022, under staff authority, staff executed a 10-month contract with California Consulting to improve the City’s position in seeking opportunities and applying for grants to enhance and increase service levels to the community. In addition, the consultant assisted the City with the standardization of the City’s process for identifying, applying, tracking, and reporting of grants. The agreement with California Consulting expires in January 2023.

ANALYSIS
Project Description
Legislative Advocacy. Working with City staff and Council, TPA will implement the City’s 2023 legislative workplan as approved by the Council in November 2022. TPA will implement subsequent year workplans as well in a fashion that mirrors the Council direction in June 2021 to be strategic in the approach to legislative advocacy in both Sacramento and Washington, DC.

With regular scheduled discussions with the full Council and the Policy and Services Committee, TPA will inform the Council of updates in the state and federal capitals and receive feedback from the Council on areas of interest and concern. Staff will regularly communicate with TPA to keep progressing the City‘s legislative goals.

With the Policy and Services Committee discussion on November 3, 2022 and the full Council discussion on November 7, 2022, the Council received an update on the happenings in Sacramento and Washington, DC and planned out the work for 2023 in addition to adopting the City’s Legislative Guidelines. Staff took this information into consideration in evaluating the proposals for legislative services and factored it into the scope of services included in the attached contract. In this 2023 legislative year, staff looks forward to the Council having additional planned interactions with the lobbyist team based on the 2023 workplan.

Grant Support Consultant Services. Working with City staff, priorities and funding needs will be assessed at the onset of the engagement by TPA. Working together with the City’s legislative advocacy teams, TPA will research grant opportunities and assist the City with prioritizing grants to pursue, based on funding priority and a variety of factors, such as eligibility and feasibility of compliance requirements. TPA will also develop and submit the City’s grant proposal and provide grant administration support post-award to ensure that the City meets reporting and compliance requirements.

Summary of Competitive Solicitation Process
On August 31, 2022, a Request for Proposals (RFP) for legislative advocacy and grant consulting services was posted on PlanetBids, the City’s eProcurement portal, as a multi-award RFP. The proposal period was 34 calendar days and included a pre-proposal meeting to review work scope Item 4
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and answer questions that prospective proposers may have. Proposals were received by seven consulting firms and six of these proposals were considered responsive, listed below:
•Alcalde & Fay (grant consulting and legislative services) •California Consulting Inc. (grant consulting)
•Darnell Shaw Environmental, SPC. (grant consulting and legislative services) •Engineering Solutions Services (grant consulting)
•Townsend Public Affairs, Inc. (grant consulting and legislative services) •Van Scoyoc Associates, Inc. (legislative services)
Table 1 below summarizes the RFP process:

Table #1: Summary of Request for Proposal Process
Request for Proposals Name/Number Grant Consulting and Legislative Advocacy Services (RFP 183770)
Total Days to Respond to RFP August 31 to October 4, 2022 (34 calendar days)
Pre-Proposal Meeting September 6, 2022
# of Company Attendees at Pre-Proposal Meeting Six
# of Proposals Received Seven*
Proposal Price Range $40,000 - $186,000, annually
*Individual proposals covered a variety of strategy areas (grants and legislative advocacy) An evaluation committee consisting of Administrative Services, Public Works, and City Manager‘s Office convened to review proposals and conduct interviews with the top three scoring firms.

The committee reviewed the firm’s qualifications and submittal in response to the criteria outlined in the RFP, including work quality, the consultant’s experience and effectiveness, quality and completeness of the proposal, prior performance, the proposer’s financial stability and ability to provide services. The committee also evaluated each firm’s proposed strategy and approach to supporting the City in these service areas.

TPA stood out in grant consulting services because they provide assistance throughout the entire grant process from searching for grants to application to grant award and to ensuring the City knows the requirements for the grant and can comply with them in a timely manner. For state legislative advocacy, TPA showed a breadth of knowledge on relevant issues and key players and expressed how they would use that information to benefit the City. Lastly, for federal advocacy, TPA’s scope included connections to federal agencies to stay informed of potential impacts to the City. Overall, TPA’s expressed ability to connect grants, state, and federal advocacy work efficiently on behalf of the City made them the forerunner for this contract for all three service task areas.

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TPA was selected by the evaluation committee as the firm best qualified to support the City’s legislative advocacy and grant support and compliance service needs. TPA has been the City’s state legislative advocacy firm for the past eight years and most recently has assisted the City with securing over $7.2 million in direct funding from the State (Fire Station 4 and Newell Road Bridge Replacement) and securing a $26.6 million award for Project Homekey. In addition to these recent funding successes, TPA has also helped establish Palo Alto’s presence in Sacramento presenting the City as a thoughtful, strategic partner advocating for local communities. TPA’s collaborative and strategic approach to advocacy and funding will position the City to explore all funding opportunities through the state and federal legislative channels.

FISCAL/RESOURCE IMPACT
This action approves professional services for contract costs that are included in the City Manager’s Office and Administrative Services Department FY 2023 General Fund Adopted Budget. No Council action is needed to adjust the budget.

STAKEHOLDER ENGAGEMENT
These contracts continue resources to staff in departments throughout the organization and has drawn assistance of a variety of department representatives for the evaluation of these proposals and feedback of what is needed in work scope. Departments such as Public Works, City Manager’s Office, and Administrative Services were consulted and coordinated with internally on selection of these recommended firms. Staff also consulted the Council in the legislative workplan for 2023 which is the basis for the work planned by the proposed firm. Council will also interact in public meetings with the selected firm.

ENVIRONMENTAL REVIEW
Approval of this contract is not a project under the California Environmental Quality Act (CEQA), as it is an administrative activity that will not result in direct or indirect changes in the environment. (CEQA Guidelines 15378(b)(5).)

ATTACHMENTS
Attachment A: Contract with Townsend Public Affairs, Inc.; Contract #C23183770 APPROVED BY:

Ed Shikada, City Manager
Report #: 2212-0512
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CITY OF PALO ALTO CONTRACT NO. C23183770

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND
TOWNSEND PUBLIC AFFAIRS, INC.

This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of January, 2023 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and TOWNSEND PUBLIC AFFAIRS, INC., a California co, located at 1401 Dove Street, Ste. 330, Newport Beach, California, 92660 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS
A. CITY intends to be represented in all state and federal legislative advocacy matters and requires grant consulting and compliance services ( the “Project”) and desires to engage a consultant for representation and professional services in connection with the Project ( the “Services”, as detailed more fully in Exhibit A).

B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.

C. CITY, in reliance on these representations , desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.

NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:

SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.

SECTION 2. TERM.

The term of this Agreement shall be from the date of its full execution through December 31, 2025 with the option to renew for an two periods of one (1) year each, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. CITY shall notify CONSULTANT of its intent to exercise its option to renew in writing no later than ninety (90) days before the end of the term of this Agreement.

SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE DocuSign Envelope ID: 0D4CF149-1368-4634-BC70-63557AF39F86 Item 4
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OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.

CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.

SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Five Hundred Fifty - Eight Thousand Dollars ($558,000.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.

Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of zero Dollars ($0) for the performance of Additional Services ( as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Five Hundred Fifty-Eight Thousand Dollars ($558,000.00), as detailed in Exhibit C. “Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may e lect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional S ervices in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section . Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4 .

CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for DocuSign Envelope ID: 0D4CF149-1368-4634-BC70-63557AF39F86 Item 4
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Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.

SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the S ervices performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.

SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this A greement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.

SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement , as amended from time to time . CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.

SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services , arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change or der markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.

SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.

SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be DocuSign Envelope ID: 0D4CF149-1368-4634-BC70-63557AF39F86 Item 4
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deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the S ervices requested by CITY under this Agreement.

CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities re lated to CONSULTANT’s performance of the S ervices, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT ’s provision of the Services only, and not as to the means by which such a result is obtained.

SECTION 11. ASSIGNMENT . The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the C ity Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, succes sors, executors, administrators and assignees of the parties.

SECTION 12. SUBCONTRACTING.

Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.

Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcon tractors authorized by CITY to perform work on this Project are:

CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors . CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors . CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.

SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Niccolo De Luca, Telephone: (510) 835-9050, Email: [email protected], as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day- to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s P roject Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager DocuSign Envelope ID: 0D4CF149-1368-4634-BC70-63557AF39F86 Item 4
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and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.

CITY’s Project Manager is Chantal Cotton Gaines, City Manager’s Office, 250 Hamilton Avenue, 7th Floor, Palo Alto, CA , 94301, Telephone: (650) 329-2572, Email:

[email protected]. C ITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.

SECTION 1 4. OWNERSHIP OF MATERIALS . A ll work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the C ity Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.

SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.

SECTION 16. INDEMNITY.

16.1. T o the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.

16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, DocuSign Envelope ID: 0D4CF149-1368-4634-BC70-63557AF39F86 Item 4
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or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.

16.3. Th e acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.

SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 2 9.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy.

SECTION 18. INSURANCE.

18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.

18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -: VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.

18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days ’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT , CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or m odification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.

18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT ’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.

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SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.

19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination , CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.

19.2. In event of suspension or termination, CONSULTANT wi ll deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).

19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s S ervices provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion . The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.

19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).

SECTION 20. NOTICES.

A ll notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:

To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
W ith a copy to the Purchasing Manager
To CONSULTANT: Attention of the P roject Manager at the address of CONSULTANT recited on the first page of this Agreement.

C ONSULTANT shall provide written notice to CITY of any change of address.

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SECTION 21. CONFLICT OF INTEREST.

21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.

21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest.

CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time . CONSULTANT agrees to notify CITY if any conflict arises.

21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.

SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.

22.1. As set forth in Palo Alto Municipal Code S ection 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregna ncy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section

2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.

22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.

SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with t he CITY’s Environmentally Preferred Purchasing policies which are available at CITY ’s Purchasing Department , hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste ; and, third, recycling or composting waste. In particular, C ONSULTANT shall comply with the following Zero Waste requirements:

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(a) All printed materials provided by CONSULTANT to C ITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY ’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by C ONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken bac k by CONSULTANT , at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.

SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE .

CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.

SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This S ection shall take precedence in the event of a co nflict with any other covenant, term, condition, or provision of this Agreement.

SECTION 2 6. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.

26.1. T his Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j).

SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS” . For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, DocuSign Envelope ID: 0D4CF149-1368-4634-BC70-63557AF39F86 Item 4
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alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. ( Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects , certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.

T his Project is not a 9204 Public Works Project.

SECTION 28. CONFIDENTIAL INFORMATION.

28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose.

CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information.

Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.

28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code S ection 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.

28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.

28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.

28.5. Prior to or upon termination or expiration of this Agreement, DocuSign Envelope ID: 0D4CF149-1368-4634-BC70-63557AF39F86 Item 4
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CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT.

28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.

SECTION 29. MISCELLANEOUS PROVISIONS.

29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.

29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.

29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.

29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings , either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Munic ipal Code, as amended from time to time.

29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.

29.6. In t he event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.

29.7. T he provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.

29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.

29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.

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SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:

EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS

THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.

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CONTRACT NO. C3183770 SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.

CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
TOWNSEND PUBLIC AFFAIRS, INC.

By:_________________________________
Name: Christopher Townsend
Title: President
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EXHIBIT A

SCOPE OF SERVICES
CONSULTANT will provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”.

CONSULTANT will represent CITY in all federal and state legislative advocacy matters including grant seeking and funding advocacy. CONSULTANT will also assist the City in the follow up requirements necessary for grants the City successfully obtains. The CONSULTANT'S objective will be to execute a comprehensive legislative strategy on behalf of CITY.

CONSULTANT will not attempt to achieve the CITY'S goals while disadvantaging another entity, city, or county. When possible, CONSULTANT will work towards win-wi n scenarios. In order to achieve the CITY'S objectives, advocacy must encompass an understanding of all matters related to the CITY'S legislative program.

Task 1: State Legislative Advocacy Services and Deliverables CONSULTANT will continue to utilize the following strategic and comprehensive approach to provide state legislative advocacy services to the City. The deliverables for state legislative advocacy services are embedded within the scope below.

CONSULTANT will advocate in Sacramento on behalf of the City of Palo Alto. These efforts will include:

1. C
onduct Detailed Orientation: CONSULTANT will utilize a comprehensive onboarding process that includes extensive meetings with various relevant members of City leadership and key City departments to help develop a strategic plan that is carefully tailored to satisfy the needs of the City, as well as designed for maximum success in the current political climate and funding environment.

2. D
evelop Legislative Strategy: Utilizing the information gathered during the onboarding process and work the City has done in recent years, CONSULTANT will coordinate with the City to develop an official legislative platform and strategy that represents the City’s priorities in Sacramento. This blueprint will be shared with key stakeholders in the State Legislature and Governor’s Administration.

3. I
mplement the Legislative Strategy: CONSULTANT will advocate for the City’s legislative agenda utilizing the following methods:

4. B
uild and Strengthen Relevant Relationships: CONSULTANT has cultivated a network of valuable relationships that will be leveraged to promote the City’s legislative agenda.

These relationships include:
a. C
ity Legislative Delegation (State Senator and State Assembly member) b. Governor’s Administration and Agency Leadership
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c. State Legislative Leadership
d. Key Legislative Committees
i. Senate Budget Committee
ii. Assembly Budget Committee
iii. Senate Governance and Finance Committee
iv. Assembly Local Government Committee
v. Senate Housing Committee
vi. Assembly Housing and Community Development Committee

5. Leverage Relationships for Strategic Advocacy Plan: CONSULTANT will engage various techniques to leverage its network of key relationships on behalf of the City:
a. Schedule meetings for the City to discuss relevant legislation b. Prepare all briefing materials and talking points for the City c. Brief legislative offices and stakeholders on the City’s legislative agenda d. Follow-up on meetings to ensure commitments and deliverables are being met

6. Coordinate Advocacy Trips: CONSULTANT will work with the City to coordinate advocacy trips to Sacramento to meet with the City’s legislative delegation, as well as legislators that serve on committees relevant to the City’s agenda. Furthermore, whenever possible, CONSULTANT will also schedule site visits by legislators to the City.

7. Track Legislation: CONSULTANT will identify, analyze, and monitor all bill introductions and amendments relevant to the City’s legislative platform and assess their potential impact on the City.

8. CONSULTANT will ensure that the City receives relevant information in a timely manner on such legislation.

9. Craft Testimony and Position Letters: CONSULTANT will prepare and submit written and verbal testimony regarding legislation relevant to the City.

10. CONSULTANT will also draft and deliver position letters to legislators and key officials on specific bill language.

11. Draft Bill Language: CONSULTANT will draft language and amendments for relevant legislation, as required to protect and promote the City’s agenda.

12. State Budget Funding Opportunities: In an effort to maximize state funding, CONSULTANT will work with the City to identify projects and other funding priorities that may be suitable for funding through the State Budget.

13. CONSULTANT will coordinate with the City to develop supporting materials for the budget request.

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14. CONSULTANT will also work with members of the City’s state legislative delegation, along with the Assembly and Senate Budget Committees, to gain support for the inclusion of the City’s project in the final State Budget approved by the Legislature.

15. Strategic Communications Guidance: As directed, CONSULTANT advocates will recommend strategic media strategies to improve the image of the City in the state and effectively communicate the City’s policy priorities and positions to a broad audience as needed. Examples include advice on Op-Ed materials, strategizing with media outlets for visits with the City’s legislative delegations, and delivering state and local responses to legislative issues.

16. Provide Progress Reports: CONSULTANT will confer regularly with the City on our activities.

17. CONSULTANT will provide timely electronic reports on the status of all legislative activity, such as bill language, amendments, and committee analyses.

18. In addition to written reports, CONSULTANT will be available to the City for conference calls, in-person briefings, and meetings.

19. Prepare and File Lobbying Disclosure Reports: CONSULTANT will prepare and file, on behalf of the City, all applicable state lobbying disclosure reports.

Task 2: Federal Legislative Advocacy Services and Deliverables

The deliverables for federal legislative advocacy services are embedded within the scope below.

CONSULTANT will utilize the following strategic and comprehensive approach to provide federal legislative advocacy services to the City.

1. Conduct Detailed Orientation: CONSULTANT will utilize a comprehensive onboarding process that includes extensive meetings with various relevant members of City leadership and key City departments to help develop a strategic plan that is carefully tailored to satisfy the needs of the City, as well as designed for maximum success in the current political climate and funding environment.

2. Develop Legislative Strategy: Utilizing the information gathered during the onboarding process, CONSULTANT will coordinate with the City to develop an official legislative platform and strategy that represents the City’s priorities in Washington, DC. This blueprint will be shared with key stakeholders in the Congress and the Presidential Administration.

3. Implement the Legislative Strategy: CONSULTANT will advocate for the City’s legislative agenda utilizing the following activities (not limited to)

4. Leverage Relationships for Strategic Advocacy Plan: CONSULTANT will engage DocuSign Envelope ID: 0D4CF149-1368-4634-BC70-63557AF39F86 Item 4
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various techniques to leverage our network of key relationships on behalf of the City:

a. Schedule meetings for the City to discuss relevant legislation b. Prepare all briefing materials and talking points for the City c. Brief legislative offices and stakeholders on the City’s legislative agenda d. Follow-up on meetings to ensure commitments and deliverables are being met o Coordinate

5. Advocacy Trips: CONSULTANT will work with the City to coordinate advocacy trips to Washington, DC to meet with the City’s legislative delegation, as well as legislators that serve on committees relevant to the City’s agenda. Furthermore, whenever possible, CONSULTANT will also schedule site visits by legislators to the City.

6. Track Legislation: CONSULTANT will identify, analyze, and monitor all bill introductions and amendments relevant to the City’s legislative platform and assess their potential impact on the City.

7. CONSULTANT will also track other initiatives occurring in Washington, DC that could impact the City (e.g., new programs with local impacts; relevant funding opportunities; etc.)

8. Craft Testimony and Position Letters: CONSULTANT will prepare and submit written and verbal testimony regarding legislation or initiatives relevant to the City.

9. CONSULTANT will also draft and deliver position letters to relevant agencies and legislators.

10. Draft Bill Language: In partnership with legislators, CONSULTANT will draft language and amendments for relevant legislation, as relevant and feasible to promote the City’s agenda.

11. Federal Earmark / Community Project Funding Opportunities: In an effort to maximize federal funding, CONSULTANT will work with the City to identify projects and other funding priorities that may be suitable for funding through the Federal Earmark process.

12. CONSULTANT will coordinate with the City to develop supporting materials for the earmark request.

13. CONSULTANT will also work with members of the City’s federal legislative delegation to gain support for the inclusion of the City’s project.

14. Build and Strengthen Relevant Relationships: CONSULTANT has cultivated a network of valuable relationships that will be leveraged to promote the City’s legislative agenda.

These relationships will include:

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a. City Legislative Delegation (US Senators and Representative representing Palo Alto area)
i. Administration
ii. White House Office of Intergovernmental Affairs
iii. Department of Agriculture
iv. Department of Commerce
v. Department of Education
vi. Department of Homeland Security
vii. Department of Housing and Urban Development
viii. Department of the Interior
ix. Department of Justice
x. Department of Labor
xi. Department of Transportation
xii. Army Corps of Engineers
xiii. Bureau of Reclamation
xiv. Economic Development Administration
xv. Environmental Protection Agency
xvi. Fish and Wildlife Service
xvii. National Marine Fisheries Service
xviii. National Park Service

b. Federal Agencies
i. Army Corps of Engineers
ii. Bureau of Justice Assistance
iii. Community Oriented Policing Services (COPS)
iv. Employment and Training Administration
v. Environmental Protection Agency
vi. Federal Emergency Management Agency
vii. Federal Highway Administration
viii. Federal Railroad Administration
ix. National Endowment for the Arts
x. National Park Service
xi. US Economic Development Administration
xii. US Fish and Wildlife Service
xiii. US Forest Service

c. House Appropriations Committee
d. Energy and Commerce Committee
e. House Ways and Means Committee
f. Transportation and Infrastructure Committee
g. Municipal Organizations
h. US Conference of Mayors
i. National League of Cities
j. Mayors and CEOs for U.S. Housing Investment
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k. Mayors and CEOs for U.S. Housing Investments

15. Provide Progress Reports: CONSULTANT will confer regularly with the City on our activities.

16. CONSULTANT will provide timely electronic reports on the status of all legislative activity, such as bill language, amendments, and committee analyses. In addition to written reports, CONSULTANT will be available to the City for conference calls, in- person briefings, and meetings.

17. Prepare and File Lobbying Disclosure Reports: CONSULTANT will prepare and file, on behalf of the City, all applicable federal lobbying disclosure reports.

Task 3: Grant Support Services

Task 3A: Funding Needs Assessment and Citywide Prioritization

1. C onduct Detailed Orientation: CONSULTANT will utilize a comprehensive onboarding process that includes extensive meetings with various relevant members of City leadership and key City departments to develop a strategic plan that is tailored to satisfy the needs of the City, as well as designed for maximum success in the current political climate and funding environment.

2. Craft Strategic Funding Plan: Utilizing the information gathered during the onboarding process, CONSULTANT will coordinate with CITY to develop a proactive and comprehensive strategic funding plan that serves the needs of the City’s priorities. The plan will identify City projects, outline and prioritize multiple funding options for each project, and develop a specific plan of work tailored for each project. The plan will also identify key criteria or restrictions that will help the City assess the cost/benefit ratio for each grant opportunity.

3. Identify, Research, and Monitor Grant Funding Opportunities: CONSULTANT will utilize list-serve subscription programs, funding workshops, agency canvassing, and other networking tactics to ensure every potential opportunity is identified and reviewed for relevance with the City’s projects.

4. CONSULTANT will Share these opportunities with CITY for further assessment and determination if a grant application is warranted. CITY will also receive a grant matrix of funding programs that is updated regularly as new opportunities arise and to assist with workload management and prioritization.

Deliverables for Task 3A:

1. Meet with City staff to ascertain needs and goals

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2. Conduct background research as requested by City

3. Provide advice on best grants for City to pursue, based on Strategic Funding Plan and grant requirements and guidelines

4. Regular communication via email, phone, or video conference regarding upcoming grant opportunities.

5. Strategic Funding Plan and Grant Matrix of Funding Programs that includes elements outlined above

Task 3B: Grant Writing Services

1. C ommunity Outreach: CONSULTANT will assist CITY with community outreach required for grant applications by ensuring the City is aware of specific requirements, help develop materials that capture all elements required by the grant, and compile the data following the outreach to include in the application.

2. Grant Application Development and Submittal: CONSULTANT will develop, draft, submit, and follow up on each City grant application through the following process:
a. Establishment of Clear Accountabilities: To avoid confusion and inefficient and to ensure that CITY is burdened as little as possible as CONSULTANT pursues a grant opportunity, CONSULTANT will coordinate with CITY to ensure the assignment of responsibilities and tasks are made clear. b. Provide Overview of Full Application Requirements: To ensure that the program is a strong fit for the City’s project, CONSULTANT will provide CITY with a detailed overview of the requirements for each grant program and corresponding application. This will include:
i. Application timeline
ii. Eligible project types
iii. Funding availability and award maximum and minimums iv. List of application components, including proposal questions and any required
v. Attachments

c. Assemble Project Background and Details: CONSULTANT will conduct a detailed informational interview with City staff most involved with each project to gain a full understanding of the project background and scope details necessary for developing the grant proposal and addressing all application questions.

d. Coordinate Technical Project Details: For technical application components such as site plans, detailed cost estimates, project timelines, engineering plans, and cost benefit analyses, CONSULTANT will coordinate with City staff to compile all necessary attachments and ensure consistency across all elements of the DocuSign Envelope ID: 0D4CF149-1368-4634-BC70-63557AF39F86 Item 4
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application.

e. Draft Written Proposal: CONSULTANT will fully draft all narrative components of the application and, when applicable, will indicate where additional input or project detail from the City could be provided during the proposal review process.

f. Incorporate Feedback to Finalize Proposal: Well ahead the of the application deadline, CONSULTANT will provide CITY with a full draft for review and feedback. CONSULTANT will incorporate any additional details or revisions provided during this process to finalize the grant application and will obtain CITY’S approval for the final version of the application prior to submission.

g. Submit Completed Application: CONSULTANT will ensure that applications are submitted prior to the deadline, whether the submission is electronic or through hard copies, in accordance with submission instructions for each individual program. For hard copy submissions, CITY will print and package applications according to submission instructions and will ship applications through a reliable carrier service such as FedEx in order to provide the City with tracking and delivery confirmation for the application.

h. CONSULTANT will also obtain a receipt for proof of submission and provide a final copy of all submitted application documents to CITY.

3. Funding Advocacy: Throughout grant application process CONSULTANT will leverage relationships with relevant officials and program officers in various state and federal funding agencies
to ensure that grant applications are aligned with the goals of the specific grant program and that the applications are well-crafted and well positioned for funding.

Deliverables for Task 3B:

1. Develop/draft, finalize, and submit all sections of grant applications, with direction of CITY.

2. Monthly reports that advise CITY of status of grants in progress, grants submitted, and grants awarded.

3. Ensure timelines for grant submittal are met.

Task 3C: Grant Compliance Support

1. Post-Grant Submittal Advocacy: CONSULTANT will frequently contact legislators and agency officials to follow up on the status of a grant application and promote its need and urgency. This will include drafting letters of support after grant submissions and DocuSign Envelope ID: 0D4CF149-1368-4634-BC70-63557AF39F86 Item 4
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distributing them to legislators for their consideration. In addition, CONSULTANT will work with legislators to reach out to individual granting agencies to provide background on City’s projects and convey their support for those projects.

2. Post-Award Grant Administration and Compliance: CONSULTANT will also assist, as needed, with post-award administration and compliance for all grant applications submitted by CONSULTANT on behalf of CITY. This assistance will include interacting with granting agencies on behalf of the City, providing support for the drafting and submission of required reports, evaluations, and other tasks related to the successful monitoring of and compliance with the program requirements.

a. On an as needed basis, CONSULTANT will provide post-award grant administration and compliance technical expertise and/or support, as agreed upon between the CONSULTANT and CITY for grants not submitted by CONSULTANT.
b. Scope and fees for these ADDITIONAL SERVICES will be agreed upon by CONSULTANT and CITY and a TASK ORDER issued.

3. Comprehensive Follow-Up on Unsuccessful Applications: Despite all best efforts, some grant applications are not selected for funding. In those instances where grant applications are unsuccessful, CONSULTANT will work with the relevant state and federal funding agencies to set up in-person or telephone debriefing sessions to discuss the grant applications and how to best revise the grant applications for the next funding round to ensure success.

4. Provide Monthly Progress Reports: CONSULTANT will confer regularly with CITY on grant opportunities, progress reports, and other activities. CONSULTANT will provide timely electronic monthly reports on the status of all funding activity, such current funding opportunities, current applications, submitted applications, and post-grant submittal advocacy, and a summary of activities taken during the previous month and the status. In addition to written reports, CONSULTANT will be available to the City for conference calls, in person briefings, and meetings.

Deliverables for Task 3C:

1. Monthly reports that detail grant compliance activities, current and upcoming, and state and/or federal legislative advocacy work/support.

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EXHIBIT A-1

PROFESSIONAL SERVICES TASK ORDER

CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO.

OR PURCHASE ORDER REQUISITION NO. ( AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:

2. CONSULTANT NAME:

3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________

5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:

SERVICES AND DELIVERABLES TO BE PROVIDED

SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

I hereby acknowledge receipt and acceptance of this
Task Order and warrant that I have authority to
sign on behalf of Consultant.

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

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EXHIBIT B

SCHEDULE OF PERFORMANCE

CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.

Milestones
Completion
Number of Days/Weeks (as specified below)
from NTP
Task 1: State Legislative Services As directed by the City Project Manager within the term of the agreement.

Task 2: Federal Legislative Services As directed by the City Project Manager within the term of the agreement.

Task 3: Grant Support and Compliance
Services Includes A, B and C below
A. Funding Needs Assessment and Citywide
Prioritization, as described in Exhibit “A”
As directed by City Project Manager within the
term of agreement.

B. Grant Writing Services, as described in
Exhibit “A”
As directed by City Project Manager within the
term of agreement.

C. Grant Compliance Support, as described
in Exhibit “A”
As directed by City Project Manager within the
term of agreement.

Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on- call agreements per Section 1 or agreements with Additional Services per Section 4.)

The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.

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EXHIBIT C

COMPENSATION

CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as E xhibit C-1 up to the not to exceed budget amount for each task set forth below.

CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below , provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.

CONSULTANT agrees to complete all Services , any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this /these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.

BUDGET SCHEDULE

TASK NOT TO EXCEED AMOUNT
Task 1
(Grant Consulting and Compliance Services) $144,000.00

Task 2
(Federal Legislative Advocacy Services) $216,000.00

Task 3
(State Legislative Advocacy Services) $342,200.00

Less: Discount for Bundled Cost Structure
(Tasks 1, 2, and 3) ($144,000.00)

Sub-total for Services $558,000.00
Reimbursable Expenses (if any) $0.00
Total for Services and Reimbursable Expenses $558,000.00 Additional Services (if any, per Section 4) $0.00
Maximum Total Compensation $558,000.00

REIMBURSABLE EXPENSES

CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time /overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in -house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.

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Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.

A. Travel outside the San Francisco Bay A rea, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.

B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost.

All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information.

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EXHIBIT D

INSURANCE REQUIREMENTS

CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE

CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.

AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.

REQUIRED TYPE OF COVERAGE REQUIREMENT

MINIMUM LIMITS
EACH

OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY

STATUTORY

STATUTORY STATUTORY STATUTORY
YES

GENERAL LIABILITY, INCLUDING

PERSONAL INJURY, BROAD FORM

PROPERTY DAMAGE BLANKET

CONTRACTUAL, AND FIRE LEGAL

LIABILITY

BODILY INJURY

PROPERTY DAMAGE

BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000

$1,000,000

YES

AUTOMOBILE LIABILITY,

INCLUDING ALL OWNED, HIRED,

NON-OWNED

BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE

PROPERTY DAMAGE

BODILY INJURY AND PROPERTY

DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000
$1,000,000
$1,000,000

$1,000,000

YES

PROFESSIONAL LIABILITY,

INCLUDING, ERRORS AND

OMISSIONS, MALPRACTICE (WHEN

APPLICABLE), AND NEGLIGENT

PERFORMANCE
ALL DAMAGES $1,000,000
YES

THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST

AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM

OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY

CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.

I. INSURANCE COVERAGE MUST INCLUDE:

A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.

II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569

III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:

A. PRIMARY COVERAGE

WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,

INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR

CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.

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B. CROSS LIABILITY

THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER

THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE

INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE

INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.

C. NOTICE OF CANCELLATION

1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON

OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL:

HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569

HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP

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CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: CONSENT AGENDA
Lead Department: Human Resources
Meeting Date: February 6, 2023

TITLE
Adoption of Memorandum of Agreements with International Association of Firefighters, Local 1319 and Service Employees International Union, Local 521; CEQA status—not a project

RECOMMENDATION
Staff recommends that Council adopt:

1. A new memorandum of agreement between the City of Palo Alto and the International Association of Firefighters Local 1319 (IAFF) effective upon adoption through June 30, 2025

2. A new memorandum of agreement between the City of Palo Alto and the Service Employees International Union Local 521 (SEIU) effective upon adoption through December 31, 2024.

BACKGROUND
In accordance with California State law regulating local public agencies, the City of Palo Alto meets and confers in good faith with our recognized labor organizations. The teams of negotiators representing the City, which were comprised of outside counsel, Human Resources staff, and management representatives, met with labor representatives and successfully reached Tentative Agreements on a successor Memorandum of Agreement (MOA) to the prior MOAs for both bargaining groups.

The City of Palo Alto currently has 567 FTE that are covered under the SEIU MOA. Employees within this bargaining unit work in all areas of City service such as our Utilities, Community Services, Public Works, and Libraries. SEIU is the City’s single largest bargaining group and represents non-supervisory employees. The prior agreement with SEIU was in effect until December 31, 2022.

The City of Palo Alto currently has 90 FTE covered under the IAFF MOA. Employees with this bargaining unit work in the areas of fire emergency medical services and fire suppression, Item 5
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prevention, and inspection services. The prior agreement with IAFF was in effect until December 31, 2022.

DISCUSSION
The City’s workforce retention and recruitment strategy focuses on total compensation and benefits to minimize turnover while increasing the flexibility of compensation. The goal of the City’s compensation philosophy is to recruit and retain excellent public employees who can in turn provide exemplary service to our community. As a service-based organization, the City recognized that people (also referred to as ‘personnel’) are critical to achieving our mission as an organization and providing the services our community requires, requests, and desires.

Over the past several years, the City has faced consistent difficulties in recruiting and retaining personnel in key areas of service. A variety of impacts, including the ongoing economic trend of voluntary resignations known as the Great Resignation, brought these recruitment and retention difficulties to a wider array of City departments and services. As of November 2022, the City had 154 vacant positions out of 1,025 total full-time authorized positions. This represents a citywide vacancy rate of 15% and a 10- year high. As discussed during the FY2023 budget development and despite the continued implementation of expedited hiring practices, this high level of vacancies has not started to decline.

To meet these challenges, the City has developed both short- and long-term strategies for recruiting new talent and maintaining our existing workforce. This led to the development of a market survey methodology that would target a competitive market placement positioning the City of Palo Alto as an Employer of Choice, as well as prioritizing base salary and flexibility with an emphasis in employee choice in benefits. The agreements before Council have been collaboratively negotiated with our labor partners to further these shared goals.

The following summarizes the recommended changes to the terms of the agreements:

SEIU 521 - Summary
•4% general salary increase upon adoption and a 4% general salary increase in the first full pay period following January 1, 2024
•Targeted Market Adjustments upon adoption in alignment with benchmark studies •One-time discretionary cash payment of $1,200 per employee upon adoption •Health Benefits Contributions – City contributions increase by 4% to $2,350 upon adoption for 2023 and up to 4% in 2024 (this reflects a sharing of expected cost increases, similar to prior terms)
•Addition of one floating holiday in recognition of days of historical significance •Increased ability to expedite the hiring and promotional processes for example through the use of flexibly staffed classifications.

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IAFF 1319 - Summary
•4% general salary increase in the first full pay period following July 1, 2023, and 4% general salary increase in the first full pay period following July 1, 2024 •Targeted Market Adjustment upon adoption and the implementation of an additional step in the salary range in alignment with benchmark studies •Health Benefits Contributions – City’s contributions will be up to $2,260 per month. This is contribution, which reflects a 4% increase, brings IAFF into alignment with Management and Professional employees and will not increase in Year 2 of the contract, as employees will instead be provided with flexible compensation to increase employee choice.
•Flexible Compensation – increase base salary in order to provide more flexibility for employees with different goals and interests allowing choices for employees o$100 per month compensation upon adoption
oAdditional $100 per month (for a total of $200/month) effective January 2024 •Addition of one floating holiday in recognition of days of historical significance (In-lieu Holiday Pay)
These agreements are before Council for adoption in a timely manner to the expiration of existing contracts due to the collaborative nature of this round of negotiations with the goal to not only maintain positive workforce interactions but most importantly to maintain the City’s ability to ensure the good and efficient services for the community. These agreements, in addition to steps taken with the Management and Professional group in December, will aid the City in meeting critical service delivery needs and staffing key projects identified by the Council and community.

FISCAL/RESOURCE IMPACT
Approval of the staff recommendations outlined in this report will result in cumulative costs of approximately $5.4 million in the General Fund ($14.6 million in all funds) over the term of the SEIU agreement, which extends two years (January 2023 - January 2025), and approximately $7.5 million in the General Fund ($7.5 million in all funds) over the term of the IAFF agreement, which extends two and a half years (January 2023 – June 2025). Ongoing annual costs for these agreements once the contract term ends are estimated at $7.0 million in the General Fund and $12.2 million in all funds.

The FY 2023 Adopted Budget and FY 2024 – 2033 Long Range Financial Forecast (LRFF) includes a level of modeling and reserves to plan for additional costs resulting from new labor agreements. Also on the Council’s February 6, 2023 agenda is a revised FY 2024-2033 LRFF which has restated the City’s forecast in alignment with the current status of labor discussion including the terms in these recommended agreements. Staff acknowledge that this revised forecast reflects projected deficits however, as noted earlier, has planned the use of reserves to Item 5
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ensure the City can support the financial impacts of these contracts during this uncertain economic time. Ongoing, staff expect that continued economic recovery as well as a more diverse revenue base will assist in ensuring the ongoing funding for these costs can be addressed.

For funds other than the General Fund, no specific reserve for these increases were allocated, however sufficient funding remains in these funds through either appropriated funds or reserves including fund balance. Salary expenses will be monitored throughout FY 2023 citywide and appropriate adjustments will be recommended, if necessary, to align appropriated expenses with projected costs. Effective in FY 2024 and FY 2025, staff will include these compensation adjustments in the budget development process.

STAKEHOLDER ENGAGEMENT
City staff will post the Memorandum of Agreements and salary schedules on the City’s website after Council adoption for public access. In addition, Human Resources will communicate the changes to the terms of these agreements to support employee retention and highlight in job postings to attract new talent and fill vacancies.

POLICY IMPLICATIONS
The recommended changes to the terms of both contracts are within Council authorized direction.

ATTACHMENTS
Attachment A: SEIU Memorandum of Agreement
Attachment B: IAFF Memorandum of Agreement
Attachment C: SEIU Salary Schedule
Attachment D: IAFF Salary Schedule
APPROVED BY:

Sandra Blanch, Human Resources Director
Report #: 2301-0719
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CITY OF PALO ALTO
Memorandum of
Agreement
City of Palo Alto and Service Employees
International Union (SEIU) Local 521

January 1, 2019 – December 31, 2021January 30, 2023 – December 31, 2024

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TABLE OF CONTENTS
PREAMBLE ....................................................................................................................... 6 ARTICLE I – RECOGNITION .......................................................................................... 6 Section 1 - Recognition. .................................................................................................. 6 Section 2 - Protection of Unit. ........................................................................................ 6 ARTICLE II - NO DISCRIMINATION............................................................................. 7 Section 1 – Discrimination.............................................................................................. 7 Section 2 - Right to Join the Union. ................................................................................ 7 ARTICLE III – UNION MEMBERSHIP ........................................................................... 7 Section 1 - Notice............................................................................................................ 7 Section 2 – Payroll Deductions ....................................................................................... 8 Section 3. Certification of Union Membership. .............................................................. 8 Section 4. Indemnification, Defense and Hold Harmless ............................................... 9 Section 5 - Documentation.............................................................................................. 9 Section 5 - Bulletin Boards and Departmental Mail. ...................................................... 9 Section 6 - Access to Union Representatives. .............................................................. 10 Section 7 - Meeting Places. ........................................................................................... 10 Section 8 - Notification to the Union. ........................................................................... 10 Section 9 - Union Logo ................................................................................................. 11 Section 10 - Public Notice. ........................................................................................... 11 Section 11 - Use of Agency Reports. ............................................................................ 11 Section 12 - Job Postings .............................................................................................. 11 Section 13 - Contracting Out ........................................................................................ 11 ARTICLE IV - STEWARDS............................................................................................ 11 Section 1 - Union Officers. ........................................................................................... 11 Section 2 - Number of Stewards. .................................................................................. 12 Section 3 - Release Time. ............................................................................................. 12 Section 4 - Advance Notification Before Leaving Work Location. ............................. 12 Section 5 – Release Time .............................................................................................. 12 Section 6 - Designated Union Space. ............................................................................ 13 Section 7 - Union Officers and Release Time. ............................................................. 13 ARTICLE V - REDUCTION IN FORCE ........................................................................ 13 Section 1 - Attrition. ..................................................................................................... 13 Item 5
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Section 2 - Advance Notice. ......................................................................................... 13 Section 3 - Order of Layoff. .......................................................................................... 13 Section 4 - Seniority/Bumping Rights. ......................................................................... 14 Section 5 - Re-Employment List................................................................................... 14 Section 6 - Sick Leave Balances. .................................................................................. 14 Section 7 - Hourly Employees Performing Duties. ...................................................... 15 ARTICLE VI - PERSONNEL ACTIONS ........................................................................ 15 Section 1 - Probation. .................................................................................................... 15 Section 2 - Personnel Evaluations................................................................................. 15 Section 3 - Personnel Files. ........................................................................................... 16 Section 4 - Release of Information. .............................................................................. 16 Section 5 - Promotional Opportunities. ........................................................................ 16 g) Violations........................................................................................................ 18 Section 6 - Rights. ......................................................................................................... 18 Section 7 - Apprentice Positions. .................................................................................. 18 Section 8 - Rotation. ..................................................................................................... 19 ARTICLE VII - PAY RATES AND PRACTICES .......................................................... 19 Section 1 - Salary. ......................................................................................................... 19 Section 2 - Step Increases. ............................................................................................ 19 Section 3 - Working Out of Classification .................................................................... 19 Section 4 - Classification Changes. .............................................................................. 20 Section 5 - Reclassification Requests. .......................................................................... 20 Section 6 - Assignment to a Lead Position. .................................................................. 21 Section 7 - Total Compensation and Survey Database. ................................................ 21 Section 8 - Direct Deposit ............................................................................................. 22 ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY ......................... 23 Section 1 - Work Week and Work Day. ....................................................................... 23 Section 2 - Overtime Work. .......................................................................................... 23 Section 3 - Work Shifts. ................................................................................................ 25 Section 4 - City-Paid Meals. ......................................................................................... 25 Section 5 - Break Periods .............................................................................................. 27 Section 6 - Clean-Up Time ........................................................................................... 27 Section 7 - Standby Pay, Call-Out Pay ......................................................................... 27 Item 5
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Section 8 - Night Shift Premium. .................................................................................. 28 Section 9 - Bilingual Premium ...................................................................................... 28 Section 10 - Communications Training Officer (CTO) Compensation ........................ 28 ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES ........................................... 29 Section 1 - Uniforms. .................................................................................................... 29 Section 2 - Tool Allowance. ......................................................................................... 32 Section 3 - Shoe Allowance. ......................................................................................... 32 Section 4 – Certifications. ............................................................................................. 33 Section 5 - Weather Protection. .................................................................................... 37 ARTICLE X - HOLIDAYS .............................................................................................. 37 Section 1 - Fixed Holidays. ........................................................................................... 37 Section 2 - Pay for Fixed Holidays. .............................................................................. 38 Section 3 - Work on Fixed Holidays............................................................................. 38 Section 4 - Variations in Work Week. .......................................................................... 39 Section 5 - Floating Days Off ....................................................................................... 39 ARTICLE XI - VACATIONS .......................................................................................... 40 Section 1 - Vacation Accruals. ...................................................................................... 40 Section 2 - Holiday Falling During Vacation. .............................................................. 40 Section 3 - Illness During Vacation. ............................................................................. 41 Section 4 - Accrued Vacation Pay for Deceased Employees. ...................................... 41 Section 5 - Effect of Extended Military Leave. ............................................................ 41 Section 6 - Vacation at Termination. ............................................................................ 41 Section 7 - Vacation Cash Out. ..................................................................................... 41 ARTICLE XII - LEAVE PROVISIONS .......................................................................... 42 Section 1 - Sick Leave. ................................................................................................. 42 Section 2 - Bereavement Leave. ................................................................................... 43 Section 3 - Military Leave. ........................................................................................... 43 Section 4 - Leave Without Pay. .................................................................................... 44 Section 5 - Jury Duty and Subpoenas ........................................................................... 44 Section 6 - Time Off to Vote. ....................................................................................... 45 Section 7 - Disapproval of Leave of Absence. ............................................................. 45 Section 8 - Personal Business Leave Chargeable to Sick Leave. ................................. 45 Section 9 - Return to Assignment. ................................................................................ 45 Item 5
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ARTICLE XIII - WORKERS' COMPENSATION INSURANCE .................................. 45 Section 1 - Industrial Temporary Disability. ................................................................ 45 Section 2 - Vocational Rehabilitation Benefits for Permanently Disabled Employees. 46 ARTICLE XIV - BENEFIT PROGRAMS ....................................................................... 46 Section 1 - Health Plan. ................................................................................................ 46 Section 2 - Dental Plan. ................................................................................................ 49 Section 3 - Vision Care ................................................................................................. 49 Section 4 - Life Insurance ............................................................................................. 50 Section 5 – Long Term Disability Insurance ................................................................ 50 Section 6 - Effective Date of Coverage for New Employees ....................................... 50 Section 7 - Dual Coverage ............................................................................................ 50 Section 8 - Deferred Compensation .............................................................................. 50 Section 9 – Dependent Care Assistance Program and Medical Flexible Spending Accounts. ...................................................................................................................... 50 Section 10 - Training Programs. .................................................................................... 51 ARTICLE XV – RETIREMENT...................................................................................... 51 Section 1 - PERS Continuation. .................................................................................... 51 Section 2 - Employee Share. ......................................................................................... 52 Section 3. Employer Share. ........................................................................................... 52 ARTICLE XVI - COMMUTE INCENTIVES AND PARKING ..................................... 53 Section 1 - Commute Incentive. .................................................................................... 53 Section 2 – Parking Lot Security – Municipal Service Center. .................................... 54 Section 3 – Bicycle Lockers and Motorcycle Parking. ................................................. 54 ARTICLE XVII - PHYSICAL EXAMINATIONS .......................................................... 54 ARTICLE XVIII – SAFETY ............................................................................................ 54 Section 1 - Health and Safety Provisions ...................................................................... 54 Section 2 - Union Cooperation. .................................................................................... 54 Section 3 - Safety Committees and Disputes. ............................................................... 55 ARTICLE XIX - GRIEVANCE and APPEAL PROCEDURE ....................................... 55 Section 1 - General Provisions. ..................................................................................... 55 Section 2 – Definitions.................................................................................................. 56 Section 3 - Conduct of Grievance Procedure or Appeal of Disciplinary Action Procedure. ..................................................................................................................... 56 Section 4 - Grievance and Appeal Procedure. .............................................................. 58 Item 5
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ARTICLE XX - UNSATISFACTORY WORK OR CONDUCT AND DISCIPLINARY ACTION ........................................................................................................................... 60 Section 1 - Preliminary Notice of Discipline. ............................................................... 60 Section 2 - Skelly Meeting. ........................................................................................... 61 Section 3 – Appeals. ..................................................................................................... 61 ARTICLE XXI - NO ABROGATION OF RIGHTS ....................................................... 61 ARTICLE XXII - OUTSIDE EMPLOYMENT ............................................................... 61 ARTICLE XXIII – WORK STOPPAGE AND LOCKOUTS ......................................... 61 ARTICLE XXIV - PROVISIONS OF THE LAW ........................................................... 62 Section 1 - Conformity and Separability of Provisions. ............................................... 62 Section 2 - Merit Rules and Regulations. ..................................................................... 62 Section 3 - Resolution. .................................................................................................. 62 ARTICLE XXV - TUITION REIMBURSEMENT ......................................................... 62 ARTICLE XXVI - COST REDUCTION PROGRAMS .................................................. 63 ARTICLE XXVII – TERM .............................................................................................. 64 APPENDIX A ................................................................................................................... 66 APPENDIX B. APPRENTICESHIPS .............................................................................. 68 APPENDIX C. DEPT/DIVISION CLASSIFICATION WORKDAY OR WORKWEEK VARIATION .................................................................................................................... 71 APPENDIX D. IN-LIEU PREMIUMS ............................................................................ 76 APPENDIX E. COMMUNICATIONS DIVISION PROMOTIONS .............................. 77 APPENDIX F. RECOVERY OF CITY TRAINING COSTS .......................................... 78 APPENDIX G. RECOVERY OF TRAINING INVESTMENT AGREEMENT ............ 79

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202319 - 202421 MEMORANDUM OF AGREEMENT
City of Palo Alto and SEIU Local 521

PREAMBLE

This Memorandum of Agreement (hereinafter “MOA” is entered into by the City of Palo Alto (hereinafter referred to as the “City”) and Local 521 Service Employees’ International Union, CTW (hereinafter referred to as the “Union”). For the purposes of this MOA “employee” shall mean an employee assigned to a classification within the SEIU General Employee bargaining unit. This MOA is pursuant and s ubject to Sections 3500 -3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit Rules and Regulations.

ARTICLE I – RECOGNITION

Section 1 - Recognition. Pursuant to Sections 3500 - 3510 of the Government Code of the State of California and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations, the City recognizes the Union as the exclusive representative of a representation unit consisting of all regular full and part -time employees in the classifications listed in Appendix A attached hereto. This unit, shall for purposes of identification, be titled the SEIU General Employees bargaining unit (hereinafter “General Unit”).

Section 2 - Protection of Unit. No supervisor will perform the work of an employee in the General Unit provided that there is an employee available who regularly performs such work. This does not preclude a supervisor from performing work of a minor nature or during bona fide emergencies or on a standby status when willing and qualified unit employees do not live within a reasonable response time of their work location.

Supervisory personnel shall be called out to perform unscheduled work only when SEIU General unit e mployees are unavailable to perform such work or in cases of bona fide emergencies as defined in Article VIII, Section 2. In cases of bona fide emergencies, SEIU General Unit employees shall be called out to complete the necessary work after the immediate emergency situation has been reasonably contained.

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ARTICLE II - NO DISCRIMINATION

Section 1 – Discrimination. The City of Palo Alto is committed to providing a work environment free from all forms of harassment and discrimination and agrees not to harass or discriminate against employees or applicants based on such characteristics such as race, ethnicity, color, religion, political affiliation, veteran status, military status, national origin, ancestry, disability, medical condition, marital status, age, pregnancy, sex, sexual orientation, gender identity and gender expression, or the perception that any person has such characteristic, and any other characteristic protected by federal or state law or City Ordinance. The City of Palo Alto will not haras s or discriminate against employees from exercising their rights to organize in accordance with the Meyers -Milias Brown Act.

Complaints of harassment and or discrimination should may be reported immediately to any of the following individuals
• Immediate supervisor
• Any supervisor or manager within or outside of the department • Department Head
• Human Resources Director

the Department of Human Resources and Complaints will be investigated in accordance with the City’s Policy and Procedures.

Section 2 - Right to Join the Union. The City and the Union agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws.

ARTICLE III – UNION MEMBERSHIP

Section 1 - Notice.

a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Union is the recognized bargaining representative for the employee and give the employee a current copy of the Memorandum of Agreement.

b) When a group employee orientation is held for new employees of the bargaining unit, a union representative may shall be permitted to make a presentation to such bargaining Item 5
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unit employees during the employee orientation for the purpose of explaining matters of representation. The presentation shall not exceed 30 minutes. Management will not be present during the Union presentation. The City will provide release time to a steward or Union Officer for purposes of making the presen tation. In addition, a non-City employee Union representative will also be given access to attend for the purposes of making the presentation.

c) The City will normally provide the Union with ten (10) days’ notice in advance of a group orientation. Shorter notice may be provided only in a specific instance where there i s an urgent need critical to the employer’s operations that was not reasonabl y foreseeable.

The date, time, and place of the orientation shall not be disclosed to any third party except the exclusive representative or a vendor that is contracted to provide a service for purposes of the orientation.

d) When no group employee orientation is held, if an employee is unable to attend the group orientation, or if the Union is unable to make a presentation because the City provides less than ten (10) da ys’ notice, the City will offer the Union a monthly opportunity to make a thirty (30) minute presentation to new employees. This may be scheduled before or after the Steward Council meeting . For the months of January, February, and March 2023, the Union may hold a monthly presentation (not to exceed 30 minutes) for employees hired between March 1, 2020 and September 30, 2022.

e) This section is intended to satisfy the requirements of Government Code Section 3556.

Section 2 – Payroll Deductions

The City shall deduct Union membership dues and pay other mutually agreed upon deductions (including Committee on Political Education ( COPE)) from the bi -weekly pay of member employees. The deductions in this Section shall not apply during any period where an employee is in an unpaid status and/or transfers or in any other manner leaves the representation unit.

The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain all authorizations for dues deductions signed by the individual from whose salary or wages the deduction or reduction is to be made.

The City will direct employee requests to cancel or change deductions to the Union.

Deductions may be revoked only pursuant to the terms of the employee’s written authorization. The City shall remit the deducted dues to the Union as soon as possible after deduction.

Section 3. Certification of Union Membership.

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The Union agrees to provide the City on a monthly basis, a certified list of members and a statement that the Union has and will maintain written authorizations signed by the individuals from whose wages the Union du es deductions are to be made, and a statement that the Union shall indemnify the City for any claims made by the employee for deductions made in reliance on that certification, in accordance with Government Code Section 1157.12(a).

Section 4. Indemnification, Defense and Hold Harmless

Union agrees to indemnify and hold harmless the City and all officials, employees, and agents acting on its behalf, from any and all claims, actions, damages, costs, or expenses including all attorney’s fees and costs of de fense in actions against the City, its officials, employees or agents as a result of actions taken or not taken by the City pursuant to this Article.

Section 5 - Documentation.

The City shall supply the Union with:
a) a monthly electronic file on or before the 15th of the month with the names, addresses, classifications, hourly base pay, pay period month number, work locations, work phone, home phone number, personal cellphone number, employee number, and personal email, employee ID number, and Committee on Political Education (COPE) listed separately and last four digits of the Social Security number of all bargaining unit employees on file with the City except those who file written notice with the Human Resources Department objecting to release of addresses, home telephone number, personal cellphone number, or personal email address, in which case information will be transmitted without these objected items; and

b) a list of bargaining unit new hires, terminations and retirements which occurred during the previous month.

The Union shall supply the City, and as applicable, the employees, with documentation required by Government Code Section 3502.5 (f).

Section 5 - Bulletin Boards and Departmental Mail.

The Union shall have access to inter-office mail, existing bulletin boards in unit employee work areas for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, results of elections and reports of minutes of Union meetings.

Any other material must have prior approval of the Human Resources Office. Action on approval will be taken within 24 hours of submission. The Union may send email messages only for the purposes set forth above. The IT Department will maintain the Item 5
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SEIU list and keep it current. The Union access to email is based on the following conditions: 1) emails to the SEIU list will be copied to the Human Resource Director, or designee at distribution; 2) emails to the SEIU list will only be sent by the SEIU Chapter Chair, Vice Chair, Chief Steward (s) or Secretary, 3) a maximum of 52 emails may be sent per year and a maximum of 12 emails may be sent by the SEIU Chapter Secretary.

Section 6 - Access to Union Representatives. Representatives of the Union are authorized access to City work locations for the purpose of conducting business within the scope of representation, provided that no disruption of work is involved. and the business transacted is other than recruiting of members or collecting of dues, and Tthe representative must notify the Human Resources Department prior to entering the work location.

Section 7 - Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during lunch periods or other non-working hours. Such meeting places will be made available in conformity with City's regulations and subject to the limitations of prior commitment.

Section 8 - Notification to the Union.

a) General. Pursuant to Government Section 3500, et seq. (Meyers-Milias-Brown Act as amended), the Union shall be informed in advance in writing by Management before any proposed changes not covered by this Memorandum of Agreement are made in benefits, working conditions, or other terms and conditions of employment which require meet and confer or meet and consult process. This paragraph shall not be subject to the grievance procedure of this Memorandum of Agreement so long as the Public Employ ment Relations Board retains jurisdiction over the obligation to meet and confer in good faith. b) Change in City’s Financial Situation. Should the City’s financial situation deteriorate and the possibility of layoffs result, the City Manager will give prior notice to and consult with the Union prior to recommending any layoffs to the City Council.
c) Vacancies and Temporary Personnel. The City agrees to notify SEIU Local 521 in writing when any irregular, temporary, hourly, provisional, special or extra help employee who consistently performs work typical of the SEIU Local 521 bargaining unit exceeds 1,000 hours of work within a 18 -month period. The City agrees to notify SEIU Local 521 in writing when any position covered by this agreement is left vacant for more than 60 days. In coordination with the SEIU 521 Hourly representation Unit, the City and SEIU 521 may meet regarding the conversion of any long term and on-going hourly positions which may be converted to full time positions through the budget process.

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Section 9 - Union Logo. All materials and documents produced on Itek and metal plates, by the City print and reproduction shop, shall carry the Union label on the inside of covers or title pages in accordance with customary printing trades practices.

Section 10 - Public Notice. The City shall make available to the Union, in a timely manner, copies of all City Council meeting agendas, minutes and schedule of meetings. These materials will be available online via the City’s website.

Section 11 - Use of Agency Reports. Upon request, the City shall provide to the Union reports by department on the use of agency temporaries filling representation unit vacant positions, or doing work similar to that of representation unit classifications.

Section 12 - Job Postings. The City shall incorporate the requirements of this Article when publicizing job announcements for classifications covered by this Memorandum of Agreement.

Section 13 - Contracting Out. The City through the labor management process will keep the Union advised of the status of the budget process, including any formal budget proposal involving the contracting out of SEIU bargaining unit work traditionally performed by bargaining unit members at least thirty (30) days prior to the release of the City Manager’s proposed budget. The City will notify the Union in writing at least ninety (90) days prior to contracting work which has been traditionally performed by bargaining unit members . Within the ninety (90) day period of contracting out, both parti es may offer alternatives to contracting out and meet and confer on the impact of such contracting out of a bargaining unit employee work. The City will notify the Union in writing when contracting out work which has been traditionally performed by bargaining unit workers, where such contracting out is expected to replace a laid off bargaining unit position that has been eliminated within ninety (90) days prior to the date of the planned contract work. When feasible, the City will provide such notice prio r to the beginning date of the planned contract work. The City will meet with the Union upon request to discuss alternatives. This provision does not apply to the filling of temporary vacancies of twelve (12) months or less duration. The City will provide the Union with a biannual list by department of all contract workers or vendors who are contracted by the City who perform work for the City. The City will make a reasonable effort to identify the names of the vendors on the list and the nature of the work provided by each vendor.

ARTICLE IV -– STEWARDS AND OFFICERS

Section 1 - Union Officers. The Union agrees to notify the Director of Human Resources of those individuals designated as Union officers and stewards who receive and investigate grievances and represent employees before Management. Alternates may be Item 5
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designated to perform steward functions during the absences or unavailability of the steward.

Section 2 - Number of Stewards. The number of stewards designated by the Union at a given time shall not exceed thirty-five (35).

Section 3 - Release Time. It is agreed that, as long as there is prior notice as specified below to the Supervisor and the release of stewards will not unreasonably disrupt City operations, stewards shall be allowed reasonable release time away from their work duties, without loss of pay, to represent a unit empl oyee or employees on grievances or matters within the scope of representation, including:

a) A meeting of the steward and an employee, or employees of that unit related to a grievance.

b) A meeting with Management.

c) Investigation and preparation of grievances.

Grievances may be transmitted on City time. All steward release time shall be reported on time cards.

Section 4 - Advance Notification Before Leaving Work Location. The Union agrees that the steward shall give no less than one (1) full business day advance notification to his/her supervisor before leaving the work location, except in those cases involving an unforeseeable circumstance that requires immediate union repres entation where advance notice cannot be given or when the relevant supervisor otherwise allows less notice. A supervisor may deny such a request for release from duty if the steward is needed to ensure real time delivery of services that the steward provi des for the public or internal City customers and another employee who normally provides such services is not available on a straight time basis to relieve the steward, or in a bona fide emergency.

If such denial occurs, the union may request the release of another of its designated stewards to perform the representation duties involved. Such request shall be processed in accordance with the terms set forth in this section except that the requirement for a full business day advance notice to the replacement representative’s supervisor shall not apply. Nothing herein shall preclude the City from rescheduling a meeting it has scheduled, to facilitate the attendance of a steward who has requested release if, in the City’s judgment, such change can be underta ken without undermining the objectives of the meeting.

Section 5 – Release Time . Four (4) Union officers, who are City employees, shall be allowed a reasonable amount of release time off for purposes of meeting and conferring Item 5
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or meeting and consulting on matters within the scope of representation. All such time will be reported on timecards.

Section 6 - Designated Union Space. Union stewards may utilize space in assigned desks for storage of Union materials. In the event stewards are not assigned desks the City will provide locker or other mutually agreeable space for storage of Union materials.

Section 7 - Union Officers and Release Time. Four (4) union officers, who are City employees shall be allowed a reasonable amount of release time off for monthly Labor/Management Meetings. When the Union believes additional subject matter expert or experts would be helpful to the discussion, the Union shall notify the Human Resources Director, or designee and request release time for those individuals. Additional release time will be by mutual agreement.

Officers released under this section may be permitted reasonable release time for caucus, the amount of which will be determined by mutual agreement.

ARTICLE V - REDUCTION IN FORCE

Section 1 - Attrition. In the event of reductions in force, they shall be accomplished wherever possible through attrition.

Section 2 - Advance Notice. When the City determines that layoffs are imminent resulting from reduction in force within the representation unit, the Ci ty will give the Union such advance notice as is reasonable under the circumstances. The notice will indicate the departments and divisions which will be affected and the circumstances requiring the layoffs. The City will furnish the Union with a current representation unit seniority list with notice of layoff.

Section 3 - Order of Layoff. If the work force is reduced within a department, division, or office for reasons of change in duties or organization, abolition of position, shortage of work or funds, or completion of work, employees with the shortest length of service will be laid off first so long as employees retained are fully qualified, trained, and capable of performing remaining work. Length of service for the purpose of this article will be based on current service hire date of record in a regular classification with no adjustment for leaves of absence. Length of service ties will be determined by lot in a method agreeable to both parties. Employees laid off due to the above reasons will be given written notice at least thirty days prior to the reduction in force. A copy of such notice will be given to the Union. Such employees shall be offered priority employment rights to regular positions which are requisitioned and for which the employ ees are qualified for a period beginning with notification and ending sixty (60) days following the reduction in force.

Employees transferred or reclassified under this section will be assigned to the step in the Item 5
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new classification salary range closest to the employee's salary range at the time of reclassification. Employees laid off pursuant to this section shall receive the balance of all regular City compensation owed and severance pay equal to one month’s salary at the employee’s final rate of pay at termination. This does not include any amounts payable under Article V, Section 6, or PERS contribution refunds, if any.

Section 4 - Seniority/Bumping Rights. Employees identified for layoff who have seniority (bumping) rights to their current or previo usly held classifications within the representation unit must declare their intention to exercise these rights in writing and submit to the Human Resources Department within seven (7) working days after written notification of layoff, otherwise bumping rig hts will automatically terminate. Bumping may occur within the representation unit, only to the least senior incumbent of the current or a previously held classification. To bump, the employee must be fully qualified, trained, and perform all work in the position. For purposes of this section of the Agreement, the term "working days" shall mean Mondays through Fridays, exclusive of holidays.

When an employee returns to work from a military protected leave, they will be reinstated as required by law. Sho uld this result in bumping a current employee; the displaced employee will have bumping rights as set forth in this section.

Section 5 - Re-Employment List. The names of employees laid off or who through bumping changed classification in accordance with the provisions of this Article shall be entered upon a re-employment list in seniority order. The employee with the greatest seniority on the re-employment list, including those who exercised their bumping rights, shall be offered reinstatement first. Such notice of reinstatement shall be in writing with a copy to the employee, Union and Chapter Chair. If a laid off employee waives reinstatement or fails to respond within ten (10) working days of receipt of the notice, the employee shall be removed from the reemployment list. The person with the highest seniority including those who exercised their bumping rights on a re -employment list for a particular classification when a vacancy exists in that classification shall be offered the appointment.

Names shall be carried on a re-employment list for a period of two (2) years from the date of separation from City services or change of classification through bumping. Upon re - employment within the two-year period, the employee's hire date of record at the time of layoff will be reinstated. When qualifications are in question, the City and SEIU will meet and confer.

Section 6 - Sick Leave Balances. Employees laid off pursuant to Section 2 who are reinstated to a regular position within sixty (60) days shall retain the sick leave balance they had at the time of layoff, unless they have received a sick leave payoff in accordance with Article XII.

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Section 7 - Hourly Employees Performing Duties. No representation unit employee will be laid off or remain o n a re -employment list when hourly employees are performing substantially all the duties of the classification of the employee receiving a layoff notice or on a re-employment list. This provision shall not be applied to hourly positions which have been traditionally used for seasonal and part-time work.

ARTICLE VI - PERSONNEL ACTIONS

Section 1 - Probation. Each new regular or part -time employee, except employees in police dispatch positions, shall serve a probationary period of twelve (12) months, commencing with the first day of his/her employment. Each new regular or part- time employee in dispatch positions will serve an 18-month probationary period commencing with the first day of his/her employment. The probationary period shall be regarded as a part of the testing process and shall be utilized for closely observing the employee's work, for securing the effective adjustment of a new employee to his/her position, and for rejecting any probationary employee whose performance does not meet the accepta ble standards of work. At least one written performance appraisal will be given to each probationary employee on or before expiration of the probationary period. This appraisal will be given approximately at the end of the sixth month and another at the end of the twelfth month for employees in police dispatch positions. In the event of termination prior to successful completion of the probationary period, s uch terminated employee shall be given written notice of his/her termination with the reasons for the termination stated therein. The Human Resources Department shall, upon request, afford an interview in a timely fashion to the terminated employee for discussion of the reasons for termination. The employee may, upon request, be accompanied by a Unio n representative. The interview shall not be deemed a hearing nor shall it obligate the City to reconsider or alter the termination action. The parties agree that probationary employees shall have all rights under this Memorandum of Agreement, including full and complete access to the grievance procedure, save and except for instances of suspension, demotion or termination.

Section 2 - Personnel Evaluations. Personnel evaluations will be given to employees annually as scheduled by Management. Personnel evaluations are not appealable through the grievance procedure but, in the event of disagreement over content, the employee may request a review of the evaluation with the next higher level of Management, in consultation with the Human Resources Department. For purposes of this review, the employee may be represented by the Union. Decisions regarding evaluation appeal shall be made in writing within ten (10) working days following the review meeting.

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Section 3 - Personnel Files. Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, revi ew by their Union representatives. An employee or the Union shall be allowed, upon reasonable request, copies of materials in an employee's personnel file relating to a grievance. Records of disciplinary actions, including references in a performance evaluation, shall be removed from a personnel file upon written request by the employee after a period of four years, or sooner as mutually agreed by Management and the employee so long as the re have been no duplicated policy violations since the discipline (based on the Notice of Disciplinary Action) and the disciplinary action did not involve a violation of the City’s anti-harassment policy, or state and federal harassment and discrimination laws.

Section 4 - Release of Information. The City will only release information to creditors or other persons upon prior identification of the inquirer and acceptable reasons for the inquiry. Information then given from personnel files is limited to verification of employment, length of employment and veri fication and disclosure of salary range information. Release of more specific information may be authorized by the employee.

Section 5 - Promotional Opportunities.

With the exception of Flexibly Staffed positions and Apprentice positions as described in Appendix B, the promotional procedures in this Section will control. A Flexibly Staffed position is a position where transition from one classification to another occurs when an employee has met the requirements for promotion to the higher classification and does not require a promotional process. A position is considered Flexibly Staffed when that position is budgeted at a higher classification than the position is currently filled. For example, if the City recruits for a Planner but ends up underfilling the position with an Associate Planner, the incumbent may be reclassified to a Planner once they qualify for that classification.

Flexibly Staffed positions will be identified by mutual agreement using the following process: (1) Prior to posting the recruitment, the City will notify the Union that it intends to identify a position as Flexibly Staffed; (2) if the Union requests to meet over the designation, the recruitment will proceed and the Parties will discuss flexible staffing at Labor Management; (3) if the Union does not request to meet over the designation or if the Parties reach agreement to designate the position as Flexibly Staffed, the City will designate the position as Flexibly Staffed.

a) Posting. Promotional opportunities for classifications within the representation unit will be posted for at least ten (10) working days (Monday through Friday)fourteen (14) Item 5
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calendar days prior to selection. Outside recruitment may be used for promotional openings and may begin at the time of posting, or any time thereafter. If, however, there are three or more qualified internal candidates within the department where the vacancy occurs, and those candidates successfully complete the selection process, outside candidates will not be considered.

b) Internal Candidate Eligibility. All non-probationary representation unit employees are eligible to apply for posted promotional opportunities, except that Management may waive this requirement for all probationary employees within the department where the promotional opportunity occurs.

c) Selection. The selection procedure for each promotional opening will be determined and administered by the Human Resources Department in consultation with the requisitioning department. Selection procedure and job description information will be available at the Human Resources Office at the time of posting. Efforts will be made to standardize tests and procedures where standardization is feasible and appropriate. Any tests used shall be reasonably predictive of success in the classification, and tests not be biased with respect to race, sex, sexual orientation, religion, creed, political affiliation, color, national origin, ancestry, or age. Selection procedures may include any or all of the following phases:

1) Application. Both inside and outside candidates must complete a City of Palo Alto application form specified by the Human Resources Department. Applications must be submitted to the Human Resources Office.

2) Screening. Applications will be screened by the Human Resources Department and, in some circumstances, a manager from the Department seeking to fill a position to ascertain whether candidates meet minimum requirements as outlined in the job description. Internal candidates deemed not to meet minimum requirements may submit additional qualification information writing within three working days of notification of requirement deficiency.

3) Performance Testing . Performance tests, such as typing, machinery or vehicle operation, skills demonstration, physical agility, etc., will be qualifying. Pass -fail points will be announced in advance for qualifying tests. If requested in writing prior to the test, performance test may be witnessed by Union steward.

4) Written Tests. Written achievement or aptitude tests will be qualifying. Pass-fail points will be announced in advance for qualifying tests.

5) Interviews, Appraisals. Interviews may be conducted individually or by interview boards and will be qualifying. Interview boards shall be composed of qualified and Item 5
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unbiased people. Where interview boards are used, Management will include at least one bargaining unit employee on each board. If individual interview or an interview board is used, a majority of the individuals or board members must recommend a candidate in order for the candidate to qualify for appointment.

Performance appraisals written by candidates' supervisors may be used as indicated in the selection procedure.

d) Recommended Candidates. Candidates who successfully complete all phases of the selection procedure will be recommended to the appointing authority.

e) Seniority. Seniority, for purposes of this Article, will be based on current service hire date of record in a regular classificat ion with no adjustment for leaves of absence.

Seniority ties will be determined in favor of the employee with the lowest employee number last four digits. Exceptions to this subsection may be established by mutual agreement on a departmental or divisional basis. Such exc eptions are listed in Appendix E.

f) Appointment. The appointing authority will make appointments from among those recommended candidates who are most qualified as determined by objective review of selection procedure results and backgroun d materials. Where appointments are made from only internal candidates who are equally qualified as determined by objective review of selection procedure results and past performance, seniority will be the determining factor in promotional appointments.

g) Violations. Any violation of this Article may be appealed to the Human Resources Director in Step III of the grievance procedure.

h) Eligibility List (Pilot program). Human Resources may maintain an eligibility list of those applicants who interviewed and were ranked within the top three (3). Candidates on an eligibility list will be considered for any vacant position in the classification for which the list exists, without the need to submit a new application under section (c)(1) of this provision. This pilot program will sunset with the expiration of the MO A, but not later than December 31, 2024, unless extended by written agreement of the parties.

Section 6 - Rights. Unit employees applying for a vacant equal or lower paying position shall have the same rights as unit employees applying for a promotion.

Section 7 - Apprentice Positions. (a) The City shall establish apprentice positions wherever feasible. Length of apprenticeship, type of training, and pay levels shall be by mutual agreement. Where possible, apprentice positions will underfill regular positions so that incumbents may automatically progress to the classification for which they are training upon successful completion of apprenticeship. The City will meet and confer with the Item 5
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Union before adding any new apprenticeship programs during the term of this agreement. All apprenticeship programs are listed in Appendix B.

Section 8 - Rotation. In assigning employees to regular or special shifts, transfer, standby, overtime, or vacation selection, ability to perform the work, length of service or equitable rotation shall determine the assignments. In accordance with this provision, more definitive rules may be arranged by mutual agreement of the Union and individual City departments.

ARTICLE VII - PAY RATES AND PRACTICES

Section 1 - Salary.

The base salary rates and ranges for job classifications covered by this bargaining unit shall be increased as set forth in Appendix A to reflect salary increases for all positions in the unit and market adjustments to positions identified in the total compensation survey as under-market based on the survey results for base, cash, insurance and the normal cost of retiree medical (when such information is required by and verified through the CAFR), with total rates and ranges as set forth in Appendix A (Salary Schedule) attached hereto.

Section 2 - Step Increases.

Merit advancements from the first salary step to the second salary step shall be granted upon successful completion of probati on and between second and subsequent steps at one-year intervals, if the affected employee has demonstrated continued improvement and ef ficient and effective service. For the purpose of determining step time requirements, time will commence on the first day of the month coinciding with or following entrance onto a salary step. Step increases shall be effective on the first day of the payroll period in which the time requirements have been met.

Section 3 - Working Out of Classification . The term "working out of classification" is defined as a Management authorized full- time assignment to a budgeted /approved position on a temporary basis wherein all significant duties are performed by an individual holding a classification within a lower compensation range. Out -of-classification provisions do not apply to work assignments performed in connection with specifi c predetermined apprenticeship or training programs, or declared conditions of public peril and/or disaster. Pay for working out of classification shall be as follows:

a) Employees appointed to an "out of classification" will receive acting pay beginning the first day of the assignment and shall be paid for all hours worked in the higher classification provided employee works a minimum of four (4) hours.

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b) Where out-of-class appointments last for more than 90 days, and whenever feasible, an out-of-class appointment will be rotated among qualified interested employees in the work group.

c) Employees will receive 5% premium pay for all assigned out of class pay for work within SEIU Classifications with the exception of lead assignments where the out of class pay will result in a 7% premium pay.

d) Employee appointed to “out of class” assignments that are in the Management and Professional Compensation Plan or in Utilities Manage ment and Professional Association for at least one workweek will receive up to a 10% premium pay.

Section 4 - Classification Changes.

a) During the course of this agreement, the Union and affected employees shall be notified in advance of any contemplated c hanges in classification description, wage range or steps. Such changes shall be subject to the meet and confer process. Such meet and confer process shall be concluded within no more than thirty (30) days following delivery of the City’s notice to the U nion. If the Union and the City cannot reach agreement on the appropriate pay level from a job so reclassified, the Union may, within ten (10) City business days following the conclusion of the meet and confer process described above by delivery of written notice to the Human Resources Director, refer the dispute over the proposed wage range or steps to arbitration at Step IV of the Grievance Procedure set forth at Article XIX of this Memorandum of Agreement.

Section 5 - Reclassification Requests.

a) An emp loyee or his/her representative Effective Fiscal Year 2023 -24, the Union may request in writing a re-evaluation of his/her jobup to three (3) positions based on significant permanent changes in job content or significant discrepancies between job content and classification description. The request must be in writing, contain justification and may be made only on an annual basis during the period of Sept ember 10 through October 10 January 10 through February 10 . A statement by management that a job reevaluation request will be submitted with the departmental budget does not relieve an employee the Union from the responsibility of submitting a his/her own request during this period. The Human Resources Director or his or her designee will initially respond to such requests within ninety (90) calendar days by notice to the employee and the union; however, this timeline may be extended if necessary. Such response shall include any reclassification to a different classification or changes in description that the City believes are warranted and any related changes in applicable pay range or Item 5
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steps. If meetings are held, the employee may request representation. If a reclassification is approved and results in an increase in salary, it shall be retroactive to the date the Employee or Union filed the request for the reclassification.

b) If the employee or Union disagrees with the accuracy of the description of dutie s resulting from the study conducted pursuant to subsection (a) of this Section or with the wage range or steps assigned by the City as a result of the study, the employee or Union may, within ten (10) City business days of delivery of notice of such determination, appeal such decision under step IV of Article XIX, Grievance Procedure.

c) In a dispute under Section 4(a) or section 5(b) above, the arbitrator shall render his or her decision on the appropriate wage range or steps within twenty-one (21) days after the initial hearing date. The same time line will be observed for disputes over the accuracy of the revised classification description. The parties will notify the arbitrator of this deadline at the time of the arbitrator’s selection. In reaching a decision on wage range and steps under Section 4(a) or 5(b) above, the arbitrator shall base his or her award on the factors traditionally taken into account in the establishment of compensation. When deciding a dispute over the accuracy of the revised classification description under section 5(b) above, the arbitrator shall identify the modifications of the pre-existing classification necessary to accurately reflect the permanent changes, if any, that have been implemented. Upon receipt of the arbitrator’s award, the City shall implement the revised classification and wage range or steps as provided in the award except as provided under subsection 5(c) of this section below. Notwithstanding an arbitrator’s award pursuant to any appeal process, the City retains the right to forego implementing the changes and the proposed changes shall revert to the status quo as it existed before those changes in duties occurred or were proposed.

d) An employee may submit a request for reclassification for the same classification no more than once every twenty-four (24) months.

Section 6 - Assignment to a Lead Position. All vacancies in lead positions shall be filled in accordance with Article VI, Section 5. The pay range for the lead position shall be seven percent above the pay step of the highest paid employee on the crew. Departmental exceptions for filling lead positions on a rotational basis for training and development purposes may be arranged by mutual agreement of the Union and individual City departments.

Section 7 - Total Compensation and Survey Database.

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a) Management and the Union have agreed to a compensation survey database structure which identifies specific benchmark classifications for job families, classifications within the job families of each benchmark classification, survey agencies and survey classification matches. Survey Cities include:

Alameda Hayward San Mateo
Berkeley Mountain View Santa Clara
Daly City Redwood City S. San Francisco
Fremont San Jose Sunnyvale

If the employer list will not permit the production of a survey report that includes data from at least four (4) employers that employ employees in a classification comparable to the classification surveyed by the C ity, neither party is precluded from bringing forward information on other employers in the relevant recruitment area that employ workers in a comparable classification so that data from at least five (5) surveyed employers will be included in the study, i f feasible. Such employer may include any public or private employer.

The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. The City will update the survey database and send the Union a copy no later than August 31, 2024six weeks before expiration of this agreement . This survey will be considered in connection with special adjustment proposals in successor agreement negotiations. By agreeing to a survey database, neither Union nor Management is under obligation to propose or agree to special adjustments.

City will agree to review the market studies (classification matches and comparable jurisdictions) for the classifications of Park Ranger and Public Safety Dispatcher II and will meet with SEIU beginning in February 2023. Changes will be by mutual agreement only and will be implemented for the Fiscal Year following City Council adoption (e.g., adoption in May 2023 would be implemented for FY 2023-24).

Section 8 - Direct Deposit

The City shall directly deposit all paychecks for Unit employees in a financial institution of the employee’s choice that accepts direct deposits and does not charge the City a fee(s) for direct deposit service. In the event that the employee fails to desig nate a financial institution for direct deposit of his or her payroll check, the employee shall pick up the check personally in the City’s Administrative Services Department office on the next business day following payday at a pickup time designated by Administrative Services.

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ARTICLE VIII - HOURS OF WORK, OVERTIME, PREMIUM PAY

Section 1 - Work Week and Work Day. The standard workday for regular full time employees shall be one of the following:
• Eight hours to be worked within a maximum of nine hours (fi ve-day work week); or
• Ten hours to be worked within a maximum of eleven hours (four-day work week); or
• Nine hours to be worked within a maximum of ten hours for four days with a fifth day of four hours (four and one-half day work week); or • Within a fourteen-day period, nine hours to be worked within a maximum of ten hours for eight days and eight hours to be worked within a maximum of nine hours for one day, with the work week scheduled to begin so that forty hours are worked within each seven days of the fourteen-day period (9/80 plan, with forty -hour work weeks), or any other schedule that results in a 40 -hour work week, or fits within the parameters of an FLSA 2080 Plan. The "9/80 plan" may not be used in any application that requires entitlement to FLSA overtime for working the regular work week.

With the exception of the 9/80 plan as described above and flexible scheduling for Police Dispatchers, the standard work week for regular full time employees shall be forty hours to be worked within five consecutive days. Additional exceptions to the above are listed in Appendix C. The Union shall be notified of any further exceptions to this section in accordance with Article III, Section 8.

The City and the Union agree that the availability of alternate/flexible work schedules is a valuable benefit in that they promote job satisfaction while also reducing traffic congestion and air pollution. Employees may utilize flexible arrangements to attend trainings, seminars, meetings, or for other mutually agre ed upon situations. Any such change to work hours shall be approved by the supervisor in advance and should not result in overtime.

During the term of this agreement, employees, subject to the conditions of their job assignment, may propose an alternat e work schedule as listed under this Section. Such proposals must be made to the department head through the immediate supervisor.

Serious consideration will be given to the feasibility and productivity of such proposals, however Management retains the right to determine scheduling needs.

Section 2 - Overtime Work.

a) Overtime work for all unit employees shall be defined as any time worked beyond the standard workday or beyond the standard work week.

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All time for which pay is received shall count as hours actually worked for the computation of regular overtime pay; however, non -productive time will not be included in computation of any additional FLSA premiums.

b) Emergency overtime is defined as unplanned overtime work arising out of situations involving real loss of service or property or personal danger. Emergency overtime does not include:

i. overtime work resulting from personnel replacement for purposes of maintaining scheduled staffing;

ii. overtime work which is planned in advance;

iii. overtime work resulting from being held over for up to four hours to finish work performed during the regular shift.

c) Compensation to employees working overtime will be in the form of additional pay at the rate of one and one-half times the employee's applicable hourly salary with the exception that an employee may request and, upon approval, be granted compensatory time off at the rate of one and one -half hours for each hour of overtime worked, subject to the limitations of applicable state and federal laws.

Two times the employees’ applicable hourly salary will be paid for billable customer convenience overtime and emergency overtime as defined in subsection (b) above. Employees may elect at any time to cash out compensatory time off hours or roll into vacation time, up to applicable maximums. These elections must be made via the Compensatory Time Cashout Form submitted to payroll and will take place the following pay period, if received by the form’s due date. Any compensatory time off hours not taken, allocated, or cashed out will be automatically cashed out once a year during the first pay period in April.

d) When an employee is required to work 6 or more hours of overtime (either emergency or pre-arranged) during the 16 hour period immediately preceding the beginning of the employee’s regular shift on a workday, the employee shall be entitled to an nine (9)hour rest period before returning to work. If the rest period overlaps into the second half of the work day, the employee may be given (with supervisor approval) the remaining time off (up to a maximum of 3 hours) at the straight time rate of pay. Any portion of the rest period falling within the employee’s work shift will be considered as hours worked and compensated at the straight time rate.

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e) If non-emergency overtime is canceled without at least 40 clock hours notice, the City shall pay the affected employees two (2) hours' pay at time and one-half.

f) Employees working overtime who are too fatigued to continue or return to work, for safety reasons will be released from duty without compensation.

g) Part-time Employees. Authorized hours worked by an employee in a budgeted, part-time position in excess of the scheduled hours of work of the position shall be compensated at the employee’s applicable hourly rate up to th e maximum of non-overtime hours in the work period applicable to the employee. If a part-time employee works more than 80 hours in a pay period then overtime will be paid in accordance with the FLSA.

Section 3 - Work Shifts. All employees shall be assigned to work shifts with scheduled starting and quitting times. Should conditions necessitate a change in starting and quitting times, the Union will be notified ten (10) working days in advance and permitted to discuss such changes with the City. This, however, shall not preclude the City's right to effect schedule changes dictated by operational necessity. This section does not apply to overtime scheduling.

Section 4 - City-Paid Meals.

In accordance with City policy, the City of Palo Alto bases its meal reimbursement limits on the U.S. General Services Administration (GSA) per diem rates. Those rates are adjusted every October. For overnight travel per diem rates, the City reimburses based on the rates applicable to the destination of travel, as provided by the GSA at http://www.gsa.gov/portal/category/100120. For non-travel meals, the City will reimburse up the maximum GSA rates for the Palo Alto area. Receipts are required to back-up these expenses.

a) Emergency overtime meals. For purposes of this section, emergency overtime is defined as unplanned overtime arising out of situations involving real loss of service or property or personal danger. The City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area and will provide meals in the following emergency overtime situations:

1) When an employee is called back and is on duty for a period of three consecutive hours, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends.

OR,

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2) When an employee is held over on duty so that his/her overtime assignment extends two hours after shift end, and thereafter at intervals of five hours, but not more than six hours, until the continuous overtime assignment ends.

OR,

3) When an employee is called out two hours or more before a regularly scheduled day shift and works the regularly scheduled shift, he/she will be entitled to breakfast and lunch. Lunches will be consumed on employee's own time. No in-lieu pay will be made for meals not taken. This sub -section does not apply if already covered in Section 4(a)(1) above.

4) When recalled two hours or less after the end of a regular shift, unless assigned to standby.

b) Non-emergency overtime meals. The City will provide meals for personnel assigned to non -emergency overtime work where the assignment extends two hours after the regular or overtime shift end and at intervals of five hours thereafter.

c) With regard to (a) and (b) above, the City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area. Where possible, the City will arrange purchase orders at mutually agreeable restaurants. The time necessarily taken to consume a meal provided under this section shall be considered as time worked to a maximum of one hour, except as noted in (a) (3).

d) With regard to (a) and (b) above, in the event an employee is to be provided a meal or meals pursuant to this section and such meal(s) are not provided due to working conditions, the employee shall have the option of receiving for each meal not provided an additional one hour of overtime compensation in lieu of such meal. This hour will not be considered as time worked or part of the rest period, but will be applied to qualify for the rest period.

e) Emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in an emergency overtime situation involving real or potential loss of service or personal danger.

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3) When an employee is called out two hours or more before a regularly scheduled shift. The employee will be entitled to two meals, the second meal will be consumed on the employee' s own time. No in -lieu pay will be made for meals not taken.

4) When recalled two hours or less after the end of a regular shift, unless assigned to standby.

f) Non-emergency overtime meals for Public Safety Dispatchers. The Police Department will provide meals to employees in non-emergency situations where the assignment extends more than two hours after the regular or overtime shift end and at intervals of five hours thereafter. If the City is unable to provide a meal, the City agrees to reimburse for meals based on GSA maximum rates for the Palo Alto Area. This policy only applies when an employee is held over, either voluntary or mandated, on duty beyond a scheduled regular or overtime shift.

Section 5 - Break Periods. All employees shall be granted a break period or coffee break limited to 15 minutes during each four hours of work. Departments may make reasonable rules concerning break period scheduling. Break periods not taken shall be waived.

Section 6 - Clean-Up Time. All employees whose work causes their person or clothing to become soiled shall be provided with reasonable time before lunch and at shift end for wash-up purposes.

Section 7 - Standby Pay, Call-Out Pay.

a) Standby Compensation. Employees performing standby duty shall be compensated at the daily rates established below:

Monday through Friday $70
Saturday, Sunday, Holidays $100

In the event of a declared City emergency, this section applies to standby assigned in accordance with applicable department policy.

b) Minimum Call -Out Pay. Employees not otherwise excluded from receiving overtime pay who are called out to perform work shall be compensated for at least two hours' pay from the time of the call- out for each occurrence at the Item 5
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appropriate overtime rate. The two-hour minimum does not apply to employees called out to work while earning pay for being in a standby status unless called out to perform billable customer convenience work in which case the two -hour minimum will apply.

Section 8 - Night Shift Premium. Night Shift premium is paid at a rate of 6% of an employee’s base hourly rate. Night Shift premium is paid only for hours actually worked between 6:00 p.m. and 8:00 a.m. Employees who regularly work night shifts shall receive appropriate night shift premiums, relating to night shift hours worked, in addition to base pay for holidays, sick leave and vacation.

In order to be eligible for night shift premium, an employee must meet the following criteria:
a) Be assigned to a shift on a regular basis which is scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.;
b) Or be assigned to work another employee’s regularly assigned shift which is scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.; c) Or if your schedule is temporarily changed under Section 3 of this article which is scheduled for at least 2 hours between the hours of 6:00 p.m. and 8:00 a.m.

The following are excluded from eligibility for night shift premium:
a) Overtime hours;
b) Alternate work schedules at an employee’s request which overlap with the hours of 6:00 p.m. and 8:00 a.m.

Section 9 - Bilingual Premium. $50 per pay period shall be paid to a bilingual employee whose abilities have been determined by the Human Resource Director as qualifying to fill positions requiring bilingual speaking and/or writing ability when the employee regularly performs such duties. The Human Resource Director will determine the number, timing, location and duration of the assignments receiving the additional pay provided herein and which languages are needed. Sign language shall be recognized as a bilingual skill under this Article. Disagreements over the designation of positions will be referred first to the Labor Management Committee. If a disagreement still exists it will be referred to the Grievance Procedure. Human Resources will respond to the employee within sixty calendar (60) days after receipt of request. Upon approval by the Human Resources Director, the City is required to arrange fo r language testing within four (4) months of the approval.

Section 10 - Communications Training Officer (CTO) Compensation . Public Safety Dispatchers and Chief Public Safety Dispatchers identified by Management to work as a Police Officers Standards and Training (POST) certified CTO will be compensated at a Item 5
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premium pay rate of five (5) percent. The premium pay is provided only for those hours spent as a CTO training a probationary dispatcher while on-duty in the Dispatch Center.

ARTICLE IX - UNIFORMS AND TOOL ALLOWANCES

Section 1 - Uniforms.

a) The City will provide uniforms, coveralls or shop coats on a weekly basis, or as otherwise furnished, for the following jobs and/or classifications and any positions necessary or required as determined by management.

Animal Control Officer
Assistant Storekeeper
Associate Engineer - Pretreatment
Auto Service Mechanic
Building Service Person - Lead
Building Service Person
Cathodic Technician
Cement Finisher - Lead
Cement Finisher
Chemist
Community Service Officer (CSO)
Electrical Assistant
Electrician Apprentice
Electrician Lead
Engineering Technician III - Refuse
Equipment Operator
Equipment Operator - Lead
Facilities Carpenter
Facilities Electrician
Facilities Maintenance - Lead
Facilities Mechanic
Facilities Painter
Field Serviceperson
Gas System Shop/Field Repairer
Gas System Technician I
Gas System Technician II
Golf Course Equipment Mechanic
Golf Course Maintenance Person
Heavy Equipment Operator - Lead
Heavy Equipment Operator
Industrial Waste Inspector
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Industrial Waste Investigator
Instrumentation Electrician
Laboratory Technician, Water Quality Control
Line Person/Cable Splicer
Line Person/Cable Splicer - Lead
Mail Services Specialist
Maintenance Mechanic/Maintenance Mechanic, Water Quality Control Mechanical Unit Repairer
Meter Reader
Meter Reader – Lead
Mobile Service Technician
Motor Equipment Mechanic - Lead
Motor Equipment Mechanic
Offset Equipment Operator - Lead
Offset Equipment Operator
Park Maintenance Assistant
Community Services Officer Park Maintenance Person
Park Crew - Lead
Park Maintenance - Lead
Park Ranger
Parks & Open Space Assistant
Police Records Specialist
Refuse Disposal Attendant
Senior Chemist
Senior Industrial Waste Inspector
Senior Industrial Waste Investigator
Senior Instrumentation Technician
Senior Operator, Water Quality Control
Senior Mechanic, Water Quality Control
Senior Park Ranger
Sprinkler System Repairer
Street Maintenance Assistant
Storekeeper
Storekeeper-Lead
Street Sweeper Operator
Traffic Control Maintainer - Lead
Traffic Control Maintainer II
Traffic Control Maintainer I
Tree Trimmer-Line Clearer
Tree Maintenance Assistant
Tree Trimmer-Line Clearer Assistant
Tree Trimmer-Line Clearer - Lead
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Tree Maintenance Person
Truck Driver
Utilities Compliance Technician
Utility Field Service Representative
Utility Installer/Repairer
Utility Installer/Repairer Assistant
Utility Installer/Repairer – Lead
Utility Locator
Water Meter Cross Connection Technician
Water System Operator - Lead
Water System Operator
Water System Operator I
Water System Operator II
Water Quality Control Plant Operator

b) Coveralls will be made available fo r occasional use as needed to protect clothing for the following classifications and any positions necessary or required as determined by management.

Building Inspector
Building Inspector Specialist
Building Service Person - Lead
Cable Splicer Assistant
Chief Electric Underground Inspector
Electrical Assistant
Electrician
Facilities Mechanic/Painter
Heavy Equipment Operator
Lineperson/Cable Splicer
Park Ranger
Senior Park Ranger
Utility Field Service Representative
Sprinkler System Repairer
Utility Installer Assistant
Utility Installer/Repairer
Utility Installer/Repairer - Lead

c) Employees required to wear uniforms shall be provided suitable change rooms and lockers where presently provided.

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d) Employee clothing seriously damaged or destroyed in con junction with an industrial injury will be reasonably replaced by the City. Any other claims alleging City liability may be filed with the City Attorney.

e) Except in the Utilities Division, the City will make available, as an alternative to the shirts currently provided under Section 1(a), six (6) cotton polo shirts. Employees in the Utilities Division will be provided with six (6) long-sleeve shirts and two polo shirts. Employees will be responsible for laundering the shirts. Damaged or otherwise unwearable shirts will be returned to the employee’s supervisor and replaced by the City.

f) Employees are responsible for laundering Park Ranger and Senior Park Ranger uniforms.

g) The City will meet and confer with the Union regarding any mandated changes to uniforms.

h) In accordance with California Code of Regulations (C.C.R.) section 571(a) the estimated value of City provided uniforms is $21.28 per pay period.

Section 2 - Tool Allowance.

a) Mechanics in Equipment Maintenance, Park Maintenance Lead, Motoriz ed Equipment Mechanic and Mobile Service Technician shall be paid a tool allowance of $1000610 annually upon verification of purchase by the employee.

b) Parties will meet and confer to determine if additional classifications require tool allowance.

Section 3 - Shoe Allowance.

a) Safety Shoes. The City will pay the vendor or reimburse full-time employees up to $400 per fiscal year for the cost of job -related safety shoes upon verification of such purchase by the employee.

b) Walking Shoes. The City will reimburse employees 75% of the cost of job -related walking shoes for any positions necessary or required as determined by management including Meter Reader and Meter Reader -Lead, in an amount not to exceed $300.00 per year. A walking shoe is a durable work shoe/boot (non steel-toed), is ankle supporting; oil, gas and slip resistant; waterproof or water resistant; lightweight and durable; and also provides hard surface cushioning.

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b)c) Additional Boot Reimbursements. Employees in the Park Ranger Classification will receive an additional $200 per year to account for the additional cost of wildland fire boots for a total Safety Shoe reimbursement of $600.

Employees in the Lineperson series will receive an additional $200 per year to account for the additional co st of climbing boots for a total Safety Shoe reimbursement of $600.

Section 4 – Certifications. The parties agree to retain the current list of required certifications below. Employees who are required to maintain commercial driver's licenses shall have costs for medical examinations paid by:

a) Completing an examination through their PEMHCA provider. After benefits have been paid by the PEMHCA provider, upon presentation of proper documentation, the City will reimburse any remaining costs, or

b) Completing an examination at the Workforce Medical clinic or other City designated clinic. Employees may use paid leave for attendance at scheduled medical examinations. Employees shall be permitted to use up to two hours of regular City -paid time for attendance at biannual medical examinations. The scheduling of such time shall be preauthorized by the employee’s supervisor.

c) The City will pay special registration and/or certification fees which are required by Management. During the term of this agreement, the City and the Union may, by mutual agreement, review, add or delete classifications and/or required certifications listed below:

Classification Requirement

Facilities Technician Aquatics Facility Operator Certificate

Building Inspector/
Buildg Inspection Specialist Certificate as stated in job description

Cathodic Technician Corrosion Technician by the National Assoc. of Corrosion Engineers
Engineer Professional Professional Engineer Cert. (for step E) Equip Maint Serv Pers. Forklift Operator Cert. (OSHA-approved)

Golf Course Maint Pers. Qualified Applicators' License

Heavy Equipment Operator Crane Operation Certificate
(Utilities and Electric)
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Indust. Waste Inspector Backflow Prevention Device Tester

Inspector Field Services, Utilities D1 (DOH)
Hired before July 1, 2012

Installer/Repairer Series D1 (DOH)

Maintenance Mechanic Crane Operator Certification
(Water Quality)

Mech. Unit Repairer Welding Certificate

Motor Equip Mechanic
and Lead EMS, ASE

Planner, Associate Planner AICP
Senior Planner

Public Safety Dispatcher POST Basic Dispatcher

EMD

Public Safety Dispatcher, Lead POST Basic Dispatcher

POST Supervision
EMD

Senior Operator, WQC Grade III Wastewater Treatment Plant Operator Certification

Surveyor, PW Licensed Land Surveyor
Tree Trimmer/Line Clearer Certified Tree Worker and/or Qualified Line Clearance/Tree Trimmer Cert.
(OSHA-approved)

Tree Trimmer/Line Clearer-Lead Certified Arborist

Utilities Install/Rep series Polyethylene Fusing Cert.

Gas Operator Certification (DOT)

Veterinarian Technician Animal Health Tech. Certification Item 5
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Water System Operator I Grade DI – Water Distribution Operator

Water System Operator II Grade DII – Water Distribution Operator & Grade TII – Water Treatment Operator

Senior, Water System Operator Grade DIII – Water Distribution Operator & Grade TIII Water Treatment Operator

WQC Plant Operator I Grade I Wastewater Treatment Operator Certification.

WQC Plant Operator II Grade II Wastewater Treatment Operator Certification

WQC Plant Operator Trainee Grade I Wastewater Treatment Operator Certification

Water Meter Cross-
Connection Technician Backflow Prevention Tester Certification

d) The City will pay for the Department of Motor Vehicles (DMV) licensing fees for all employees required to maintain a Commercial Driver's License in accordance with the California Vehicle Code and applicable laws prescribed by the Department of Transportation.

e) Pipeline Welding Assignment. The City provided a 4% premium in base compensation to the Utility Installer-Repairer and the Installer-Repairer Lead positions in 2006 that met DOT certification requirements and are , or were, assigned these duties. The Utility Installer-Repairer and Utility Installer- Repairer Lead positions that fail to maintain curren t certifications will not receive a 4% premium on their base pay. Positions assigned these duties and designated by Management to receive this premium will not exceed five (5) Utility Installer/Repairer(s) and Installer/Repairer Lead(s). If the certification is required in the job description, certification must be maintained. In accordance with their job description Maintenance Mechanics that are assigned to Water Gas Wastewater must maintain all required certifications and shall receive 4% premium to their base pay for pipeline welding.

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f) Building Inspector and Building Inspector Specialists . Upon successful completion of probationary requirements, the City will pay Building Inspectors and Building Inspector Specialists a one (1) percent of base sala ry one -time payment for a certification above what is required. Employees may request one payment per year to a maximum of two payments in career. Payments will not exceed a maximum of one percent per year or two payments in a career. The Building Inspe ctor and Building Inspector Specialist Job Descriptions specify current requirements and the Union and City will agree on a list of appropriate certifications eligible for the premium. Premiums will not be paid if certification is not maintained.

g) Water and Wastewater System Operator Certification. Employees classified in the following positions: Water Quality Control Plant Operators I and II, Senior Operator Water Quality Control, Laboratory Technician Water Quality Control, Chemist, Senior Chemist, Water System Operators I and II, Senior Water Systems Operator, Inspector, Field Services assigned to Utilities and Installer Repairer Job Series may be eligible to receive a 1% base pay premium for certifications required by the Department of Health, California Water Environment Association and/or the State Water Resources Control Board. Employees within these job classifications that have successfully completed probationary requirements may request an annual payment of one (1) percent for one (1) certificati on that is above those listed in their job description. An employee who qualifies for this payment shall be paid 1% of the employee’s annual base salary once per year. The employee shall be responsible for providing the City with written documentation that the employee has obtained and is maintaining the qualifying certification on an annual basis. Premiums will not be paid if certification is not maintained.

Eligible employees should verify certification will qualify for the premium before attempting certification. The Union and the City will update the job descriptions to reflect newly required certifications with no further adjustments to base salary.

Payments will not exceed a maximum of one percent per year, and will take effect in the pay period following the verification of certification. All costs for obtaining certifications above what the job description requires will be the responsibility of the employee and may be paid for by using the City’s tuition reimbursement program.

h) In accordance with Cal -OSHA regulations any employee who operates a forklift must have Forklift Operator Certification. Training to be provided by the City.

i) Crane Certification. A Heavy Equipment Operator, Line Person, Line Person Lead, or Maintenance Mechanic who possesses the legally required certification for operation of any crane will receive an increase of one percent (1%) of their base Item 5
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rate effective upon the ratification and adoption of this MOU by the City Council, or upon attainment of the certification, whichever is later.

Heavy Equipment Operator (Electric) must possess a Crane certification regardless of hire date. Any employee hired on or after July 1, 2012 may be required to obtain and possess crane certification.

For any other employee hired prior to July 1, 2012 crane certification shall be desirable (not required) except under the following circumstances:

a) There are insufficient employees in the classification (Heavy Equipment Operator [exclusive of Electric], Lineperson, Lineperson Lead or Maintenance Mechanic) who possess the certification to perform the work;

b) The Manager has sought volunteers and no employee in the classification has volunteered to train for the certification;

c) All things being equal, the manager has selected the least senior employee in the classification who is judged by the City most likely to successfully complete the training and obtain crane certification.

d) The Manager will allow up to three attempts to pass the crane certification for any employee hired before July 1, 2012 who has been involuntarily assigned to acquire the crane certification. Related training and test costs shall be borne by the City.

No employee hired before July 1, 2012 shall be disciplined or discharged for failure to acquire a Crane certification.

Section 5 - Weather Protection. The City will provide rainy weather foot protection and one summer hat for the classification of Community Services Officer.

ARTICLE X - HOLIDAYS

Section 1 - Fixed Holidays. Except as otherwise provided, employees within the representation unit shall have the following fixed holidays with pay:

January 1
Third Monday in January (Martin Luther King Day)
Third Monday in February
Last Monday in May
July 4
First Monday in September
Second Monday in October
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Veterans' Day, November 11
Thanksgiving Day
Day after Thanksgiving
December 25
Either December 24 or December 31Winter Floater (see below)

Employees shall be excused with pay for the full work shift on either December 24 or December 31, provided, however, that City facilities remain open with reduced staffing levels, that Management retains the right to determine work schedules, and that neither day be considered a holiday for purposes of premium pay. If employees are not excused pursuant to this provision, one shift of vacation credit will be added to their vacation accrual.

In the event that any of the aforementioned days, except for December 24 or December 31, falls on a Sunday, the following Monday shall be considered a holiday. In the event that any of the aforementioned days falls on a Saturday, the preceding Friday shall be considered a holiday. If December 24 and 31 falls on Sunday, then the precedi ng Friday will be designated for purposes of the holiday. Exceptions to this provision are listed in Appendix E.

Winter Floater. Employees shall be excused with pay for a full work shift on a day mutually agreed to by the employee and their supervisor during the month of December. If employees are not excused pursuant to this provision, one shift of vacation credit will be added to their vacation accrual.

Day of Reflection. In addition to the paid holidays listed above, employees shall be excused with pa y for one full work shift as a day of reflection (floating holiday) per calendar year. Employees may use the floating holiday on any day mutually agreed by the employee and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day (June 19) or Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by the end of the fiscal year will be deemed forfeited and have no cash value.

Section 2 - Pay for Fixed Holidays.

a) All employees shall be paid a full day's pay at their regular straight time base hourly rate for all fixed holidays as defined herein.

b) An employee must be in a pay status on the workday preceding the holiday to be eligible to be compensated for a holiday. This subsection does not apply to an employee who is on an unpaid medical leave of absence of less than five (5) days.

Section 3 - Work on Fixed Holidays.

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Any employee required to work on a fixed holiday shall be paid time and one-half for such work in addition to his or her regular holiday pay. Work on a fixed holiday beyond the number of hours in a regular shift shall be compensated at double time and one-half.

Employees who work a schedule where a regular day off falls on a holiday will accrue the holiday hours they would have normally worked on that day. If an employee has more than four (4) days of holiday time accrued the City will automatically cashout these additional hours. This does not impact the employee’s ability to cashout or transfer to deferred comp holiday hours below the four (4) day threshold.

Section 4 - Variations in Work Week.

a) An employee whose work schedule requires that his or her regular days off be other than Saturday and/or Sunday shall have an additional day off scheduled by the department in the event a fixed holiday falls during his or her regularly scheduled day off. Every attempt will be made to schedule the day on a mutually agreeable basis. If the day cannot be so scheduled, the employee shall be paid for the day at the straight time base rate.

b) Fixed holidays which fall during a vacation period or when an employee is absent because of illness shall not be charged against the employee's vacation or sick leave balance.

c) If conditions necessitate a departmental closure impacting employees’ regular schedules, management will work with employees to provide assignments unless the employee chooses to take unpaid time off or use paid time off in the form of vacation, personal business or compensatory time.

Section 5 - Floating Days Off

Employees hired on or before July 1, 2012 will be credited with 3 floating holidays to be scheduled for use by mutual agreement by employee and supervisor. In no event will FH be convertible to cash or other benefits in lieu of Floating Holidays.

Effective at the close of business 6/30/13 one floating holiday will be eliminated. On July 1, 2013 and every July thereafter, employees will be credited with two (2) Floating Holidays to be scheduled in the same manner as noted above.

Employees hired after 7/1/12 will not receive any floating holidays.

Floating Holidays not used by the end of the fiscal year will be deemed forfeited.

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ARTICLE XI - VACATIONS

Section 1 - Vacation Accruals. Each employee shall be entitled to an annual paid vacation, accrued as follows:

a) First day of continuous service through the last day of the fourth (4 th) year: eighty 80 hours vacation per year.

b) First day of the fifth year of continuous service through the last day of the ninth (9 th) year: one-hundred and twenty 120 hours vacation per year.

c) First day of the tenth (10 th) year of continuous service through the last day of the fourteenth (14th) year: one-hundred and sixty 160 hours vacation per year.

d) First day of the fifteenth (15th) year of continuous service through the last day of the nineteenth (19th) year: one-hundred and eighty 180 hours vacation leave per year.

e) Twenty (20) or more years: two-hundred 200 hours vacation leave per year.

Vacation accrual will be prorated based on hours in paid status.

Employees may accrue up to (3) three (3) times their annual vacation leave without loss of vacation daysaccrual (e.g., an employee who accrues 80 hours per year has an accrual cap of 240 hours) . In the event the City is unable to schedule vacation and, as a result thereof, the employee is subject to loss of accrued vacation, the City shall extend the vacation accrual limit up to one year, in which time the excess vacation must be scheduled and taken. As long as there is no interference with departmental operations, there shall be no unreasonable restriction of increments of use. Employees shall complete six (6) months' continuous service before using accrued vacation leave.

At the time of initial appointment, or to address an identified retention issue the City may credit an employee for prior experience or special expertise, including prior years of public service in a city, county, special district, state, or federal government agency, up to a maximum of five (5) years’ service. The City Manager or designee shall identify the number of years for which the employee will receive credit (up to the five (5) year maximum).

Section 2 - Holiday Falling During Vacation. In the event a fixed holiday as defined in Article X falls within an employee's vacation period, which would have excused the employee from work (and for which no other compensation is made), an additional workday for such holiday shall be added to the vacation leave.

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Section 3 - Illness During Vacation. When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave.

Section 4 - Accrued Vacation Pay for Deceased Employees. An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to his/he r estate within thirty days. This proration will be computed at his/her last basic rate of pay.

Section 5 - Effect of Extended Military Leave. An employee who interrupts service because of extended military leave shall be compensated for accrued vacation at the time the leave becomes effective.

Section 6 - Vacation at Termination. Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination.

Section 7 - Vacation Cash Out.

Once each calendar year an employee may cash out eight or more hours of vacation accrual in excess of 80 hours, to a maximum of 120 hours, provided that the employee has taken 80 hours of vacation in the previous 12 months.

1. To be eligible for cash out vacation, employees must pre-elect the number of vacation hours they will cash out during the following calendar year up to maximum of 120 hours, prior to the start of that calendar year. The election will apply only to vacation hours accrued in the next tax year and eligible for cash out.

2. The election to cash out vacation hours in each designated year will be irrevocable.

This means that employees who elect to cash out vacation hours must cash out the number of accrued hours pre-designated on the election form provided by the City.

3. Employees who do not pre -designate or decline a cash out amount by the annual deadline established by the City will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible t o cash out vacation hours in the next tax year.

4. Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to Payroll. Payroll will complete the cash out upon request, provided the requested cash out amount has accrued and is consistent with the amount the employee pre -designated. If the full Item 5
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amount of hours designated for cash out is not available at the time of cash out request, the maximum available will be paid.

5. For employees who have not requested payment of the elect ed cash out amount by November 1 of each year, Payroll will automatically cash out the pre -designated amount in a paycheck issued on or after the payroll date including November 1.

ARTICLE XII - LEAVE PROVISIONS

Section 1 - Sick Leave.

a) The City shall provide each employee with paid sick leave, earned on a daily basis and computed at the rate of 96 hours per year, with no limits on amounts that may be accumulated, except that for employees hired after July 1, 1983biweekly basis, at the rate of ninety-six (96) hours per year for full time employees. Employees will accrue sick leave at a rate of three point seven (3.7) hours per pay period. Sick le ave accrual will be prorated based on hours in paid status., Ssick leave accrual accumulation shall be limited to 1,000 hours and subsections (a)(1) and (a)(2), shall not apply. Payment for accumulated sick leave at termination shall be made only in the following circumstances:

1) Eligible employees who leave the municipal service or who die while em ployed and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one -half percent of their unused sick leave hours multiplied by their years of continuous service and their base hourly rate of pay at termination.

2) Full sick leave accrual will be paid in the event of termination due to disability.

b) Use of Sick Leave. Sick leave shall be allowed and used in cases of actual personal sickness or disability, medical or dental treatment, or as authorized for personal business. Up to nine days sick leave per year may be used for illness in the immediate family, including registered domestic partner. A new employee may, if necessary, use up to forty -eight (48) hours of sick leav e at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination.

c) An employee who has been disabled for 60 cons ecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her option, choose either to receive the long term disability benefits or to utilize the remaind er of his/her accrued sick leave prior to applying for long-term disability benefits.

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Palo Alto City CouncilFebruary 6, 2023

Palo Alto City Council
February 6, 2023