City Council and Authorities Concurrent
May 24, 2022

In accordance with the provisions of Section 18 of the City of Santa Clara Employer-Employee Relations Resolution, this Memorandum of Understanding was made and entered into by and between the designated representatives of the City of Santa Clara (a public agency as defined in Section 3501 (c) of Chapter 10 of Division 4 of Title I of the Government Code of the State of California), hereinafter referred to as the City, and Local 101, A.F.S.C.M.E., the recognized majority representative of the City of Santa Clara Field Operations and Maintenance Unit No. 6, hereinafter referred to as the Union. This agreement constitutes the results of discussions between the City Management Staff and the Union on all matters within the scope of representation. The term of this agreement shall be from January 1, 2022, through December 31, 2024.

WITNESSETH that:

WHEREAS the parties hereto desire to facilitate the peaceful adjustment of differences that may from time to time arise between them, to promote harmony and efficiency to the end that the City, Union, and the general public may benefit therefrom, and to establish fair and equitable wages, hours and working conditions for certain hereinafter designated employees of the City,

NOW, THEREFORE, the parties hereto do agree to propose and recommend that the City Council adopt the following, effective as indicated:

1. WAGE ADJUSTMENT
A. Effective the December 26, 2021 (the first pay period of calendar year 2022), all salary ranges in classifications assigned to Unit 6 shall remain status quo.

B. In recognition of, and to help secure the employees' speedy ratification of this MOU, the City has exercised its discretion to provide a one-time discretionary cash payment of $5,000 for regular employees (pro-rated for part-time employees) in the bargaining unit following Council approval of this MOU.

The Parties intend and understand that this lump sum payment is nonpensionable and will not be reported to CalPERS.

This one-time discretionary cash payment shall only be paid as follows:

Employees who were employed in a classification assigned to the bargaining unit at the time of the disbursement, which is estimated to occur after the first pay period after Council approval of MOU. The one-time discretionary cash payment shall be paid on a day after the first full pay period after Council approval of this MOU on a separate paycheck.

C. Effective December 25, 2022 (the first pay period of calendar year 2023), all salary ranges in classifications assigned to Unit 6 shall be increased by approximately 5.0%.

MEMORANDUM OF UNDERSTANDING BETWEEN

THE CITY OF SANTA CLARA AND
LOCAL 101, A.F.S.C.M.E. REPRESENTING
CITY OF SANTA CLARA FIELD OPERATIONS AND MAINTENANCE UNIT NO. 6 JANUARY 1, 2022 – DECEMBER 31, 2024
MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

D. Effective the first pay period of calendar year 2024, all salary ranges in classifications assigned to Unit 6 shall be increased by approximately 4.0%.

E. For purposes of this section of the MOU, total compensation for comparison agencies is defined as salary and fringe benefits which are paid by the agency to the employee or on the employees’ behalf and which are available to each employee in the classification specified in the survey that are recurring in nature after five years' service in that classification as shown below. For the City of Santa Clara, total compensation shall be defined as those elements listed in Section H of this MOU.

F. It is recognized by both parties to this agreement that it is their mutual responsibility to independently verify, to the extent possible, the accuracy of the information upon which total compensation adjustments are made.

Should it be discovered by either party that adjustment(s) to salary and fringe benefits are based on erroneous information or has been erroneously computed, the necessary corrective action will be taken as soon as practical after the discovery and notice of the error has been given. It is the mutual responsibility of both parties to report any suspected error immediately upon discovery to the other party. However, the period for which there will be a right to recover any monies which are either overpaid by the City or underpaid to the employee shall be limited to an adjustment period of up to 90 calendar days from the date the error was first reported to the other party.

The corrective action will be taken even in circumstances where the error may bridge successive MOU's, but the recovery will still be limited to amounts owed or owing during the prior 90 calendar days. The 90-calendar day period will begin upon the date of written notification by personal service upon the other party.

Right of recovery by the City of overpayment shall be limited to recovery over the same time period as the overpayment was made. Said repayment will begin with the next paycheck following final determination of the amount to be repaid. Underpayment to the employee shall be made by the City in a lump sum of the amount owed on the next regular paycheck following final determination of the amount to be paid.

G. There shall be no employee generated reclassification requests during the term of this MOU. However, the City agrees to discuss a City-wide reclassification policy during the term of this MOU. Neither an employee nor AFSCME shall have the right to file a grievance regarding either Human Resources’ decision whether or not to study an AFSCME requested reclassification, nor Human Resources’ conclusions if the classification is studied.

H. Prior to MOU negotiations, the City will prepare a total compensation survey by computing the total compensation effective October 1 afforded similarly represented classifications of Equipment Operator in the comparing agencies of the cities of San Jose, Mountain View, Palo Alto, Santa Clara County and Sunnyvale and obtaining the average total compensation afforded those agencies. The definitions of the compensation elements used in the survey follow.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

DEFINITIONS

1. Salary - Fifth step in the monthly salary range
for classification (excluding seniority or
longevity steps).

2. Life, Health, Dental, Vision, VEBA,
Retiree Medical, LTD and other
Insurance -
Maximum agency monthly contribution
per employee to insurance premiums
plus maximum agency monthly
contribution to other fringe benefit
insurance premiums. For retiree
medical, maximum monthly amount for
which current fifth year employee
would be eligible if the employee
retired.

3. Retirement - Monthly employer contribution to social security plans and monthly blended
employer rater contributions to
retirement.

4. Holiday Pay - Number of paid holiday hours per year
times the base hourly rate, divided by

12. 5. Vacation Pay - Maximum number of annual paid
vacation hours allowed by agency per
employee upon completion of five (5)
years’ service times the base hourly
rate, divided by 12.

6. Other - Monthly salary equivalent of or
maximum monthly agency contribution
to other fringe benefits available to all
full-time agency employees. To be
eligible for inclusion in comparison
data, such benefits of the comparing
jurisdiction must be of a reoccurring
nature or become part of their
compensation base. This category
includes the City’s monthly
contributions to employee’s VEBA
accounts

7. Total Compensation - The sum of Items 1 through 6 above.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

TABULAR DESCRIPTION OF

ADJUSTMENT OF TOTAL COMPENSATION
For the duration of this MOU, the provisions specified in this TABULAR DESCRIPTION OF ADJUSTMENTS OF TOTAL COMPENSATION are
suspended.

Upon adoption of MOU for 1999 and by
December 15, 2000, 2001 and 2002
Union presents its determination of total
compensation monies among element areas
noted in Item I-A and in accord with the
above action.

Pay Period established as effective date of
MOU, December 24, 2000 and December
23, 2001 and December 22, 2002
City implements Union’s determination of
allocations as verified by the City.

By April 1, 2000 and April 1, 2003 Union presents its comparison data as defined under Section 2.I, if any, on
represented classifications which are 2.5% or
more below survey average in total
compensation after application of the
common salary adjustment provided for in the
MOU for 2000, 2001, 2002, 2003 for
verification by the City.

After July 1, 2001 and July 1, 2003 City implements salary increases on Salary Schedule “G” for classifications determined to
be 2.5% or more under the survey average in
total compensation as necessary to bring
those classifications to equal or above the
survey average.

2. CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS) The City has contracted with CalPERS to provide employees with the 2.7% at age 55 formula effective December 17, 2006 for “Classic” or “Legacy” employees as defined by CalPERS and the Public Employees’ Pension Reform Act of 2013 (PEPRA) and the 2.0% at 62 with “highest three year average” for “New Members” as defined by CalPERS and PEPRA. Classic/Legacy employees shall continue to pay the employee contribution rate and New Members shall contribute 50% of the “normal cost” of their pension formula as required and defined by CalPERS and PEPRA. The employee's CalPERS retirement contribution will continue to be treated as tax deferred.

If CalPERS should implement a change in its actuarial methodology (i.e. assumed discount rate, smoothing methodology, demographic assumptions, etc.) which change would have a material impact on the City’s employer contribution, the City and AFSCME agree to meet and confer regarding this change and its impacts.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

3. HEALTH INSURANCE
A. The City currently contracts with the California Public Employees' Retirement System (CalPERS) for the purpose of providing medical insurance benefits for active employees and their eligible dependents, eligible retired employees, and eligible survivors of retired employees. Eligibility of a dependent to participate in this program shall be in accordance with the terms of the Public Employees’ Medical and Hospital Care Act (PEMHCA). Eligibility of retired employees and survivors of retired employees to participate in this program shall be in accordance with those provisions of the PEMHCA providing for participation by “annuitants.”
The City’s employer contribution towards medical insurance benefits for each eligible employee shall be the minimum contribution amount required by Government Code Section 22892. Contributions provided under this Section are required only to the extent mandated by the PEMHCA.

Because CalPERS may change carriers and plans, the City shall not be required to provide a specific insurance coverage and shall only be required to provide those benefits as described in this Section so long as the City contracts for benefits with CalPERS for medical insurance benefits.

Pursuant to the PEMHCA, the City will provide each eligible annuitant, as defined by the PEMHCA, with an employer contribution towards medical insurance benefits that is equal to the PEMHCA minimum contribution provided to an active employee under this Section
B. Definitions. For purposes of this section:
1) “Full-time employee” refers to an employee whose regular schedule is at least 30 hours per week.
2) “Full-time position” refers to a position in a classification, whether vacant or not vacant, whose regular schedule is at least 30 hours per week.

C. Health Insurance Contributions
1) For Plan Year 2022:
(a) For Plan Year 2022, employees who enroll in a City offered health plan and whose premium exceeds the total of the City’s Health Flex Contribution, Additional Health Flex Contribution, and/or Regular Flex Contribution applicable to the employee and as described below, the balance of the premium shall be paid by a salary deduction from the pay of the individual employee (b) Health Flex Contribution and Additional Health Flex Contribution For Plan Year 2022, the City offers full-time employees a Health Flex Contribution to put toward the payment of a City offered health plan. This amount applies for 2022, and uses the Rate of MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

Pay Safe Harbor (based on the lowest base pay of any full-time employee covered by this MOU) to ensure the City’s offered coverage is “affordable.” For Plan Year 2022, the City shall contribute the statutorily required minimum contribution under PEMHCA as determined by CalPERS in each calendar year. It is understood and agreed that the Health Flex Contribution described in this paragraph shall equal or exceed the City’s statutorily required PEMHCA contribution.1
Employees who enroll in a City health plan for which the premium amount is more than $946.86/month shall receive an Additional Health Flex Contribution. The Additional Health Flex Contribution, when added to the Health Flex Contribution described in the prior paragraph and the Regular Flex Contribution described herein, shall not exceed an amount equal to the Kaiser employee plus one rate for the applicable year.

Employees may not receive all or any portion of the Health Flex Contribution or Additional Health Flex Contribution as cash or any other taxable benefit, and must apply the Health Flex Contribution to City-offered health benefits. Employees who do not enroll in City-offered health benefits will not receive any of the Health Flex Contribution or Additional Health Flex Contribution.
(c) Regular Flex Contribution
For Plan Year 2022, the City will provide a Regular Flex Contribution equal to $946.86/month less the monthly Health Flex Contribution. Employees may use the Regular Flex Contribution to pay for health benefits offered under the City’s Section 125 plan or may opt to receive any or all of the Regular Flex Contribution as taxable cash. An employee will receive a Regular Flex
Contribution whether or not he/she enrolls in City-offered health benefits and notwithstanding the provisions of Section 3.C.1(d) below.

For employees who enroll in City health and whose benefits exceed the total of the City’s Health Flex and Regular Flex Contributions to them, the balance of the health premium shall be paid by a salary deduction from the pay of the individual employee.
(d) Cash In Lieu
For Plan Year 2022, employees who choose not to enroll in a City health plan, and meet the requirements set forth below shall receive a Cash in Lieu amount equal to $946.86 minus the Regular Flex Contribution (for 2022, the Cash in Lieu amount is 1 As an example, for 2022, the PEMHCA minimum is approximately $149/month and the Health Flex Contribution is $288.09/month, which includes the PEMHCA minimum of $149/month.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

$288.09/month).

In order to receive Cash in Lieu of health coverage, an employee must sign a form attesting that the employee and the employee’s Tax Family have the Alternative Required Coverage for the Opt Out Period.
 Tax Family means all individuals for whom the employee intends to claim a personal exemption deduction for the taxable year or years that begin or end in or with the City’s plan year to which the opt out applies.
 Alternative Required Coverage required means minimum
essential coverage through another source (other than
coverage in the individual market, whether or not obtained through Covered California).
 Opt Out Period means the plan year to which the opt out arrangement applies.

An employee must provide the attestation every plan year at open enrollment or within 30 days after the start of the plan year for each plan year the employee would like to receive cash in lieu.

The Cash in Lieu payment cannot be made and the City will not in fact make payment if the City knows or has reason to know that the employee or a Tax Family member does not have such
alternative coverage, or if the conditions in this paragraph are not otherwise satisfied.

An employee who opts out of City-offered health benefits, but cannot provide the attestation, will not receive the Cash in Lieu contribution described in this subsection.
(e) Effective December 31, 2022, this Section 3.C.1 shall expire and become ineffective.
2) Effective January 1, 2023:
(a) Effective January 1, 2023, the City shall make a monthly contribution to the City’s flexible benefit plan which, taken together with the mandatory PEMHCA contribution, equals one hundred (100%) of the premium for the lowest priced Kaiser (Region 1) plan for unit members enrolled at the employee and employee plus one levels; and ninety percent (90%) of the premium for the lowest priced Kaiser (Region 1) plan for unit members enrolled at the employee plus two or more level. If the employee enrolls in a plan whose premium exceeds the City contribution, the employee shall pay the difference between the total cost of the selected plan and the City’s contribution via salary deduction. In no event shall the City’s contribution pursuant to the provisions of this Section, MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

and any statutorily required minimum contribution under the PEMHCA as determined by CalPERS in each calendar year,
exceed one hundred percent (100%) of the premium cost of the lowest price Kaiser (Region 1) plan at the employee and employee plus one level, or ninety percent (90%) of the premium for the lowest priced Kaiser (Region 1) plan at the employee plus two or more level, in which the employee is enrolled.

There shall be no option to receive all or any portion of the City’s Contribution as cash or any other taxable benefit.
(b) Cash in Lieu

1. Effective January 1, 2023, a full-time employee hired on or before December 31, 2022, and who chooses not to enroll in a City health plan and meets the requirements set forth below in in this subsection shall receive a Cash in Lieu amount equal to $946.86/month paid out on the first pay period of the month.

2. A full-time employee hired or rehired on or after January 1, 2023, and who chooses not to enroll in a City health plan and meets the requirements set forth below shall receive a Cash in Lieu amount equal to $250/month paid out on the first pay period of the month.

3. Requirements: In order to receive Cash in Lieu of health coverage, an employee must sign and submit a form
attesting that the employee and the employee’s Tax Family have the Alternative Required Coverage for the Opt Out
Period.

A. Tax Family means all individuals for whom the
employee intends to claim a personal exemption
deduction for the taxable year or years that begin or
end in or with the City’s plan year to which the opt out applies.

B. Alternative Required Coverage required means
minimum essential coverage through another source
(other than coverage in the individual market, whether
or not obtained through Covered California).

C. Opt Out Period means the plan year to which the opt
out arrangement applies.

D. An employee must provide the attestation every plan
year and proof of Alternative Required Coverage
during open enrollment for each plan year for the
employee to be eligible to receive Cash in Lieu.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

E. The Cash in Lieu payment cannot be made and the
City will not in fact make payment if the City knows or has reason to know that the employee or a Tax Family
member does not have such Alternative Required
Coverage, or if the conditions in this paragraph are not otherwise satisfied.

F. An employee who opts out of City-offered health
benefits, and does not provide the attestation and proof of Alternative Required Coverage, will not receive the
Cash in Lieu contribution described in this subsection.

4. For employees whose regular work schedules are 30 or more hours per week but less than 40 hours per week, the Cash in Lieu amount shall be prorated as described in
Section G below.

D. Pursuant to Flores v. City of San Gabriel, the City includes medical premium contributions and "cash in lieu" payments as part of the regular rate of pay for calculating FLSA overtime premiums. The City will cease including these amounts as part of the regular rate in the event that it is no longer legally required to do so (e.g., if Flores is modified or overruled or if the City’s healthcare plan is deemed a qualified plan).

E. FMLA/CFRA Compliance
The City shall comply with the provisions of the Family and Medical Leave Act of 1993 (FMLA) and the California Family Rights Act of 1993 (CFRA).

F. Flexible Spending Account (IRS Section 125 Plan)
The City has established a Flexible Spending Account benefit (IRS Section 125 Plan) for employees, which provides accounts in which employees may contribute pre-tax dollars for dependent care and un-reimbursed medical expenses.

This Plan will follow the regulations outlined by the Internal Revenue Service.

Detailed information will be available in the Summary Plan Document. This Plan is voluntary and participating employees will make pre-tax salary reduction elections to fund the plan.

G. Proration of Benefits
For employees whose regular work schedules are 30 or more hours per week but less than 40 hours per week, benefits shall be prorated based on the employee’s full-time equivalent (FTE) level.

4. DENTAL INSURANCE
The City will pay toward dental insurance premiums an amount equal to the lowest cost employee only premium amount among the dental plans offered by MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

the City. All employees are required to enroll in a dental plan.

5. VISION INSURANCE
For persons enrolled in the City’s VSP vision plan, the city will pay toward vision insurance premiums an amount equal to the lowest cost employee only vision premium. Participation is voluntary. Employees that do not choose to enroll in a vision plan are not entitled to the benefit of City contributions to vision premiums descried in this paragraph.

6. DUES DEDUCTIONS
A. A bargaining unit member may at any time execute a payroll deduction authorization form or forms (“Deduction Authorization Form”) as furnished by the Union.

B. The Union will be the custodian of records for such Deduction Authorization Forms and will provide the City with a certification that it has and will maintain a Deduction Authorization Form, signed by each individual from whose salary or wages the deduction is to be made (“Certification”). The Union shall not be required to provide the City a copy of the member’s Deduction Authorization Form unless a dispute arises about the existence or terms of the Deduction Authorization Form. However, the Certification will contain sufficient information to allow the City to identify the appropriate level of deductions for each employee.

C. The City shall begin deductions in the amount prescribed by the Union in the first full payroll period after receipt of written Certification from the Union.

Deductions shall be made from wages earned by the employee only during the first 2 pay periods of every month. The employer shall transmit such payments to the Union no later than thirty (30) days after the deduction from the member’s earnings occurs.

D. Deductions may be revoked only pursuant to the terms of the Deduction Authorization Form. The City shall direct member requests to cancel or change deductions to the Union and shall rely on information provided by the Union regarding whether deductions for a member were properly canceled or changed. However, the parties agree that the City shall automatically cease deductions for any member who is no longer employed in a classification represented by the Union.

E. If, through inadvertence or error, the City fails to make the authorized deduction, or any part thereof, the City shall correct such omission or error within thirty (30) days after the Union notifies the City in writing of the error.

Errors will be addressed prospectively and not retroactively.

F. It is expressly understood and agreed that the Union will refund to the employee any Association dues erroneously withheld from an employee's wages by the City and paid to the Union.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

G. Consistent with state law, the Union shall indemnify and save harmless the City, its officers and employees, for (1) any claims made by an employee for deductions made in reliance on the Union’s Certification and (2) any claims made by an employee for deductions made in reliance on information provided by the Union regarding changes or cancellations to the deduction authorization.

H. The City shall distribute Union-prepared Deduction Authorization Forms to new unit members. Each pay period, the City shall provide the Union with a list of newly hired Union members (if any).

I. PEOPLE Deductions: The City agrees to deduct from the wages of any employee who is a member of the Union a PEOPLE deduction as provided for in a written authorization. Such authorization must be executed by the employee and may be revoked by the employee at any time by giving written notice to both the City and the Union. The employer agrees to remit any deductions made pursuant to this provision promptly to the Union together with an itemized statement showing the name of each employee from whose pay such deductions have been made and the amount deducted during the pay period covered by the remittance. Deductions shall be made from wages earned by the employee only during the first 2 pay periods of every month.

AFSCME and employees represented by AFSCME must comply with CMD 82 and this does not change the current rule/policy placing restrictions on political activities during work hours.

7. SICK LEAVE/FAMILY SICK LEAVE/PERSONAL LEAVE
A. Sick Leave
1) Employees shall accrue ninety-six (96) hours of sick leave per year of regular City employment. Sick leave shall accrue in equal amounts each pay period. Employees shall not accrue sick leave while they are on unpaid status.
2) Use of sick leave will be under the same terms and conditions as are now in place. Vacation and CTO may be used to supplement sick leave with Department Head approval, as permitted and set forth in CMD 30 at the time this MOU was adopted.

B. Family Sick Leave
1) Not more than forty-eight (48) hours of sick leave within one calendar year shall be granted to any employee for the care or attendance upon members of his/her immediate family, and not more than forty (40) hours of sick leave shall be granted to any employee for each occurrence of death in his/her immediate family, unless the use of additional leave is approved by the City Manager or designee. “Immediate family” is defined as spouse, parent, child, sibling, grandparent, grandchild, aunt, uncle, niece, nephew, first cousin, parent by marriage, step-parent, step-child, grandparent by marriage, son-in-law, daughter-in-law, sibling by MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

marriage, foster parent, domestic partner, anyone residing with employee, or anyone dependent on the employee for care.

C. Personal Leave
1) Each calendar year, an employee is entitled to use forty (40) hours of accrued sick leave as Personal Leave, provided he/she has sufficient sick leave balance available.
2) Personal leave is intended to provide the employee with paid time off to attend to legitimate personal business that may arise from time to time during the year. Reporting the reason for use of Personal Leave is not needed.
3) The employee has an obligation to provide as much notice as possible so as to allow for proper scheduling by the department.
4) Providing that the minimal requirements of proper notification have been met, the use of Personal Leave should not be denied.

The adoption of this program does not modify the existing ability of the employee to exchange up to 96 hours of accrued sick leave for up to 48 hours of vacation, based upon two (2) hours of sick leave for one (1) hour of vacation as provided and defined in the Personnel and Salary Resolution.

8. BEREAVEMENT LEAVE
A. The City will provide employees with a paid bereavement leave benefit to attend to the customary obligations arising from the death of a member of an employee’s immediate family, as defined in this Section. 1) Employees are eligible to receive up to forty (40) hours of bereavement leave in the event of the death of a spouse or domestic partner, parent , child , or sibling of the employee, employee’s spouse or employee’s domestic partner (including, in each case, step, adoptive and in-law); 2) Employees are eligible for up to three (3) work days (regardless of shift assigned) of bereavement leave in the event of the death of a grandparent , grandchild , aunt or uncle of the employee, employee’s spouse or employee’s domestic partner (including, in each case, step, adoptive and in-law);
3) Employees are eligible for up to one (1) work day (regardless of shift assigned) of bereavement leave in the event of the death of a greatgrandparent, great-grandchild, great-aunt, great-uncle, niece, nephew, or first cousin of the employee, employee’s spouse or employee’s domestic partner (including, in each case, step, adoptive and in-law).

B. The bereavement leave benefit is based on each death occurrence. All leave must be used within one (1) year following the death of an eligible person.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

C. Up to five (5) work days of additional bereavement leave may be charged to an employee’s accrued sick leave balance as Family Death Leave with City Manager approval.

D. At the request of the City, the employee will provide verification of death of an eligible person.

9. HOLIDAYS, AWARDED CTO, AND NON-MANAGEMENT LEAVE
A. Paid Holidays
1) The City will observe the following thirteen (13) dates (or days) as City Holidays and City offices will be closed in observance of those holidays.

Represented employees will be entitled to paid time off equivalent to the number of hours of their regularly assigned shift in observation of the holidays listed.
 New Year's Day (January 1),
 Martin Luther King Day (3rd Monday in January),
 President's Day (3rd Monday in February),
 Spring Holiday (observed on Good Friday),
 Memorial Day (last Monday in May),
 Independence Day (July 4),
 Labor Day (1st Monday in September),
 Admission Day (September 9),
 Columbus Day (2nd Monday in October),
 Veteran's Day (November 11),
 Thanksgiving Day (4th Thursday in November),
 Friday after Thanksgiving,
 Christmas Day (December 25).

Holidays which fall on a specific date and which fall on Saturday are observed the preceding Friday. Holidays which fall on a specific date and which fall on Sunday are observed the following Monday. 2) Additionally, effective December of the year this agreement is ratified by Union members and approved by City Council, the City shall provide thirty-two (32) hours for four additional paid holidays between December 25th and January 1st of the following calendar year; this section shall not be applied retroactively. If there are more than four working days between December 25th and January 1st of the following calendar year, the City shall designate which four working days shall be paid holidays under this paragraph. Employees whose jobs require them to work on these holidays will receive banked paid hours off instead (up to 8 hours per holiday) which hours may and must be used during the MOU year with the approval of the applicable supervisor/manager.

B. Awarded Compensatory Time Off (CTO)
1) On each January 1st the City will credit each represented employee with sixteen (16) hours of awarded compensatory time off (CTO) (or the MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

proportionate share if the employee is working a reduced work schedule).

This CTO shall be available for use by the employee under the same terms and conditions required by the department for use of regularly accrued CTO. Unused CTO may be traded for cash payout at any time after accrual.
2) Employees hired after January 1, 2004 shall be credited with a pro-rata share of the awarded CTO based upon the proportion of the calendar year remaining after their hire date.

C. Non-Management Leave
1) Effective December 26, 2021 (the first pay period of calendar year 2022), each full-time employee shall be entitled to a total of forty (40) hours of non-management leave per calendar year.
2) Non-management leave may be used in one-tenth (1/10) hour increments subject to supervisor approval. Non-management leave does not accrue or carry-over to subsequent years and is not subject to pay out. 3) Employees hired on or after July 1st shall be entitled to only twenty (20) hours of non-management leave in the first calendar year in which they were hired.
4) Eligible employees are not eligible for more than forty (40) hours of nonmanagement leave per calendar year, subject to Section 9.C.1.a above.

10. VACATION ACCRUAL
Represented employees will be entitled to use vacation as it is earned under the following conditions:

A. Vacation may not be taken during the first six (6) months of regular employment.

B. As long as an employee has not reached his/her maximum allowable accrual rate, based on completed years of service, vacation will be earned on a biweekly basis (1/26 of the annual accrual) provided that the employee is in a paid status for at least 2/3 of the hours (53.4 hours) of that pay period.

Employee is required to take at least 1/2 of the vacation earned in the previous calendar year during any calendar year.

C. Employees may continue to accrue and use vacation in excess of the stated maximum accrual amounts; however, any unused vacation accrual amount still on the books as of the beginning of the pay period that includes December 31st will automatically be transferred to the Emergency Paid Leave Pool.

D. Vacation may be used in one-tenth (1/10th) hour increments.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

E. Annual and maximum vacation accrual rates, calculated to four decimal points for accuracy, are as follows:

COMPLETED

YEARS OF ANNUAL MAXIMUM

SERVICE ACCRUAL RATE ACCRUAL
1 through 4 80 hours 400 hours
5 through 9 120 hours 400 hours
10 through 15 years 160 hours 400 hours
16 through 20 176 hours 400 hours
21 years + 192 hours 400 hours
F. Vacation Pay-Out
On or before the last business day before December 25th each calendar year, an employee may make in writing on an “Irrevocable Vacation CashOut Election Form” to be provided by the City an irrevocable vacation cashout election for one cash-out of vacation the following calendar year. To be effective, the employee's written notice must be received by the Director of Human Resources or designee no later than the last business day before December 25th of the calendar year before the calendar year in which the employee wishes to cash-out vacation. The amount of vacation requested to be cashed out in the following calendar year may not exceed forty (40) hours which number of vacation hours, must have been earned in the following calendar year before it may be cashed out, and requires a sufficient balance of available accrued vacation. It is understood that an employee using vacation shall always use vacation earned in prior years first before using vacation earned in the current year. The dates available for the cash-out on the Election Form provided by the City shall be the first full pay period in either April, July, October or December.

This provision shall have no effect on an employee's right to cash out all his or her accrued vacation at the time of the employee's separation/retirement from City employment.

G. For purposes of Vacation selection, seniority will be defined as time in class within the department.

H. In lieu of receiving a vacation-leave cash payout at retirement, the Union may vote once per calendar year to roll accrued vacation leave hours into the employee’s Voluntary Employee Beneficiary Association (VEBA) account, subject to Union compliance with Federal rules associated with employee contributions of vacation leave to their VEBA accounts.

11. NIGHT DIFFERENTIAL
Employees will be eligible for 5% night differential pay for all continuous hours worked between 6:00 p.m. and 8:00 a.m. so long as such hours include a minimum of 2 continuous applicable hours between 6:00 p.m. and 8:00 a.m.

Night differential shall be included in the overtime rate for overtime hours that qualify for night differential under the rule in the preceding sentence.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

12. EMPLOYEE ASSISTANCE PROGRAM
The City agrees to provide a confidential employee assistance program. Each new represented employee is provided information about the program and details about the program are on file in the Human Resources Department.

13. AFFIRMATIVE RESPONSE TO EMERGENCY OVERTIME
It is the policy of the City of Santa Clara to avoid the necessity for overtime work whenever possible. The City recognizes, however, the obligation to provide services to the community and, on occasion, may require employees to extend work shifts or to be called back to work due to emergencies, personnel shortages, or required workloads. Employees contacted for overtime work have an obligation to affirmatively respond to this need unless incapacitated or due to extenuating circumstances beyond the control of the employee and reasonably acceptable to the City. Failure on the employee’s part to affirmatively respond to such requests and/or to acceptably document such extenuating circumstances or incapacitation will be in violation of the City's rules and regulations and may be subject to formal disciplinary action. For purposes of this section, incapacitation commonly means that an employee is unable to respond to perform his/her duties because of his/her own sickness or injury, or because he/she does not feel capable of performing the duties of the assignment safely because of the ingestion of alcohol or other legal drugs or prescriptions. For purposes of this section, extenuating circumstances commonly means that an employee is unable to respond or perform his/her duties because of extraordinary circumstances such as being required to provide care for another person who is unable to care for him/herself, inability to obtain transportation to the work site, or an undue hardship that places the employee in a situation that he/she deems unsafe. In cases of extenuating circumstances, the employee is expected to notify his/her supervisor of the basis for the decision not to respond and a realistic time at which he/she will be able to report to work. Repeated instances where an employee is either incapacitated or has extenuating circumstances may be cause for the supervisor to review the situation and take appropriate corrective action.

14. OUT-OF-CLASS ASSIGNMENTS AND TRAINING
A. Out-of-Class Pay and Elimination Periods
Represented employees assigned to work temporarily in a higher classification than their own shall be paid at least 5% more than their prevailing salary or at the entrance step of the range of the higher classification, whichever compensation pattern is greater. 1) Such assignment will be paid for all actual time assigned to the higher classification, after a 4 hour elimination period on the first day of said assignment.
2) If the out-of-class assignment lasts more than 4 hours, out-of-class pay will begin with the first hour of the assignment.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

3) For a continuing out-of-class assignment of less than 4 hour increments that lasts more than 4 hours, out-of-class pay will begin with the first hour of the assignment.

Any represented employee who is assigned to work out of class in an unclassified position will receive a 5% salary differential above his/her current salary or the salary established as 85% of Control Point for the unclassified position if such salary has been established, whichever compensation pattern is greater, provided that the requirements of (1), (2), and (3) above are satisfied.

To be eligible for out-of-class pay, the employee must perform all duties as assigned within the higher classification and must be assigned in writing.

B. Out-of-Classification Assignments
Out-of-classification assignment of employees is to be limited to employees who possess the knowledge, skills and abilities necessary to perform all of the duties of a temporarily available assignment in a higher or equal classification. Determination as to the eligibility qualifications will be the responsibility of the Department or Division head. Out-of-classification assignments will be filled from seniority rotational lists as follows:

Candidates for promotion to the position within the work unit will be assigned on a rotational seniority basis. If no candidate for promotion from within the work unit is eligible for assignment, candidates within the Department who are on the promotional list for the position will be assigned on a rotational seniority basis from within the Division first and from within the Department second if the candidate has a sufficient level of qualifications in that work unit to perform all of the duties of the higher classification.

C. Training
To the extent practical and consistent with the existing workload, Department and Division Heads are expected to provide employees with the training necessary for them to perform the duties of higher classifications within the work unit. They are also expected to make information available concerning training outside of the Department that employees may participate in through the existing City Tuition Reimbursement program or on a voluntary basis.

In order to gain the experience necessary to meet the criteria for out-ofclassification assignments outlined above, employees are encouraged to seek out opportunities for cross training within the Department. One method by which this may be accomplished is by two employees in the same classification requesting that their assignments be exchanged for a defined period of time (typically three months). It will be the responsibility of the Department or Division head to approve such an exchange of duties based upon the impact on the involved work units. If there is no adverse impact on the involved work units, it is presumed that the assignment exchange will be approved.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

15. PERSONAL SAFETY EQUIPMENT AND RAINGEAR REIMBURSEMENT Employees shall receive a flat dollar lump sum (non-pensionable) amount of $600 each fiscal year toward the purchase or repair of OSHA approved steeltoed (or composite-toed) safety shoes or boots (for employees who are required to wear steel-toed or composite-toed safety shoes or boots) and/or eye protection, and/or ear plugs, and/or headwear protection (i.e., “hard hat”), and/or work gloves, raingear and/or water resistant jacket, work shirts, work pants and socks so long as the type of equipment purchased satisfies City requirements.

Employees who are required to wear steel-toed (or composite-toed) safety shoes or boots, or other safety equipment, are subject to disciplinary action if they do not have them available at the work site.

The City will continue the current policy to provide safety and/or protective equipment and/or clothing for use by the employee while performing his/her normal duties or during inclement weather or in other occasional special assignments or conditions.

16. REQUIRED TRAINING AND CERTIFICATION CLASSES
Unless it would conflict with business needs, the city will allow employees on duty time for classes and examinations to acquire and/or renew certifications required for their current positions. The city also will pay the cost of such classes and examinations.

17. GRIEVANCE PROCESS
A. The City's employee grievance process is established in City Manager's Directive #47 (CMD #47) titled On The Job Personnel Grievances. This CMD generally describes the process available to individual employees to clarify (and modify, if so required) interpretations of City rules, regulations, procedures and policies, including interpretations of this MOU. Should the City determine that CMD #47 needs to be revised during the term of this MOU, an offer to meet and consult with representatives of Unit 6 shall be extended for the purpose of receiving Unit 6 comments prior to the adoption of the revised CMD.

B. The following procedure is in place for represented employees who choose to have Union representation during the course of the Grievance process.
1) STEP 1
(a) The grievance must be presented within thirty (30) calendar days following the event(s) on which the grievance is based, or thirty (30) calendar days from when the employee received notice, to the extent possible. In no event can the grievance be filed one (1) year from the date of occurrence. Step 1 of the process is the informal discussion between the employee and his/her supervisor (up to and including the department head).

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

Should this informal process not result in resolution of the grievance, the employee shall reduce his/her grievance to writing and submit it to his/her department head for formal action as outlined in STEP 2.
2) STEP 2
(a) Within five (5) working days (or at a later, mutually agreeable date, if either the employee, his/her representative or the department head is not available within the five (5) day period) of the receipt of the formal grievance, the department head shall review the entire grievance file through a meeting with the employee and his/her Union representative (if the
employee chooses to be represented at this point). Within five (5) working days from the date of this meeting, the department head will respond in writing to the employee, setting forth his/her resolution to the problem. The employee must respond within five (5) working days to the department head in writing as to whether the grievance has been resolved or is still unresolved. If the matter has not been resolved as a result of this step, the department head shall immediately forward all written material, including the original grievance, to the Municipal Employee Relations Officer (MERO) for action as outlined in STEP 3.
3) STEP 3
(a) Within five (5) working days (or at a later, mutually agreeable, date if any party to the grievance is not available within the five (5) day period) of the receipt of the grievance material, the MERO and the department head shall review the entire
grievance file through a meeting with the employee, his/her Union representative (if the employee chooses to be
represented at this point) and any additional parties who the MERO feels can help to resolve the grievance. Within five (5) working days from the date of this meeting, the MERO will respond in writing to the employee, setting forth his/her resolution to the problem. The employee must respond within five (5) working days to the MERO in writing as to whether the grievance has been resolved or is still unresolved. If the matter has not been resolved as a result of this step, the MERO shall forward all written material, including the original grievance, to the City Manager for action as outlined in STEP 4.
4) STEP 4
(a) Within fifteen (15) working days of the receipt of the grievance material the City Manager shall review the entire matter and render a final decision, in writing as to the resolution of the grievance. This review may include a meeting with the parties concerned (including the employee and his/her Union
MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

representative) and, if such a meeting is required, it will be scheduled within the fifteen (15) day period at a date that is mutually agreeable to all parties to the matter and the City Manager will render a final decision within five (5) working days of that meeting. The City Manager's decision will be directed to the employee through his/her department head. If the employee disputes the City Manager's final decision in the matter, the advisory arbitration process outlined in STEP 5 will be available.
5) STEP 5
(a) If the Union continues to dispute the decision of the City Manager on behalf of the employee, the Union shall, within 15 working days of the City Manager's final decision, request that the matter be referred to an arbitrator, who shall render a decision on the grievance to the Union and City Manager. The decision of the arbitrator shall be final and binding.
(b) The parties agree that the time limits set forth herein are of the essence of this procedure and are to be strictly complied with.

Time limits may be extended only by written mutual agreement of the parties.
(c) The cost of the arbitrator shall be shared equally by the City and the Union and shall be selected by mutual agreement between the City and the Union or selected from a list of seven (7) qualified arbitrators provided by the State of California Conciliation Service. Any costs associated with the mutually agreed upon joint request for a list of persons qualified to act as arbitrators from the State of California Mediation and Conciliation Service shall be divided equally between the parties. The City will process the joint request after receiving the Union’s share of the cost for obtaining the list.
(d) Within ten (10) working days following receipt of the above referenced list, the parties shall meet to select the arbitrator.

The right to strike the first name shall be determined by lot and the parties shall alternately strike one name from the list until only one (1) name remains, and that person shall be the arbitrator.
(e) The arbitrator shall have all pertinent written materials and witnesses used by either party in their review of the grievance available during his/her deliberations. Costs of
representatives, witnesses or materials shall be assumed by each party to the grievance. Court reporter fees are also shared equally among the parties.

18. GOLDEN FRIDAY PROGRAM
MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

The Golden Friday program (eight 9-hour days and one 8-hour day per bi-weekly pay period) currently in place in the Street Department, the Water and Sewer Department and the Traffic Engineering Division will not be modified (expanded or reduced) during the term of this MOU unless by mutual agreement in writing by both the City and the Union. All other employees in Unit 6, including probationary employees, shall have the right to work a 9/80 alternative schedule, which 9/80 schedule may be modified temporarily or to a different 9/80 work schedule in the discretion of the Department Head or Department Head’s designee (examples include modifying the every-other-week day off, or temporarily modifying a Parks and Recreation Unit 6 employee’s 9/80 schedule to accommodate a special event need when a special event need (set-up, other) falls on the employee’s scheduled day(s) off.

19. ALTERNATE WORK SCHEDULE (NINE-EIGHTY PLAN)
An employee, subject to the conditions of the employee’s job assignment, may propose an alternate work schedule as described in City Manager’s Directive #71. Proposal must be made to the Department Head through the immediate supervisor. Consideration will be given as to the feasibility and impact on productivity of such proposal. Management retains the sole right to determine scheduling needs. A proposal for alternate work schedule, and the establishment or discontinuance of an alternate work schedule is not subject to any grievance procedure.

20. DEPARTMENTAL SAFETY COMMITTEE
City Manager's Directive #36 (CMD #36) provides for Departmental Safety and Training Programs with "representation from both office and field personnel where applicable." The City agrees to enforce the provisions of CMD #36 and provide for non-supervisory field staff representation on all Departmental Safety Committees.

21. CROSS REFERENCE OF EMPLOYMENT RELATED MATERIALS
The City shall cross-reference all pertinent sections of the Personnel & Salary Resolution, Civil Service Rules & Regulations, City Manager's Directives, and other significant documents, which pertain to employment with the City of Santa Clara. This cross-reference will be attached as an Exhibit to this MOU.

22. USE OF CITY BULLETIN BOARDS
The Employer-Employee Relations Resolution controls the use of City bulletin boards by employee organizations as follows:

A. Prior to posting, all materials must receive the approval of the department or division head in charge of the departmental bulletin board. Should the department head not approve any item for posting, and if after discussing the matter with the employee organization representative a disagreement still remains, then the matter shall be referred to the Municipal Employee Relations Officer for determination.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

B. All materials must be dated and must identify the organization that published them.

C. Unless special arrangements are made, materials posted must be removed 31 days after the publication date.

D. The City reserves the right to determine where bulletin boards shall be placed and what portion of them are to be allocated to employee organizations' materials.

E. An employee organization that does not abide by these rules will forfeit its right to have materials posted on City bulletin boards.

23. OVERTIME
Overtime work is defined as hours worked outside an employee’s regularly assigned shift. Represented employees who work overtime are entitled to:

A. Time and one half (1-1/2) the employee’s hourly rate for worked overtime, excluding unpaid mealtime.

B. Double-time (2) the employee’s hourly rate for all hours worked in excess of 12 consecutive hours of actual work, excluding unpaid meal time.

C. Employees shall not work overtime unless approved by the appropriate supervisor or manager.

City Manager's Directive #39 (CMD #39) requires equitable distribution of overtime as follows:

EQUITABLE DISTRIBUTION OF OVERTIME. Overtime will be distributed as equitably as possible consistent with efficient operations, the skills required for the assignment, and the availability of the employee and the speed with which the emergency can be confronted and eliminated.

CTO Over-Accrual:

The maximum accrual shall be the legal maximum of 240 hours. It is the City’s intention to enforce the CTO maximum accrual limit that applies to each employee. In lieu of receiving a CTO cash payout at retirement, the Union may vote to roll accrued CTO hours into the employee’s VEBA account, subject to Union compliance with Federal rules associated with contributions of accrued time into a deferred medical expense account.

24. EMERGENCY PAID LEAVE POOL

ADMINISTRATION
Administration of this program shall be provided by a three (3) member Emergency Paid Leave Board (Board), consisting of two (2) members of the MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

Union Executive Board and the City Director of Human Resources (or designee).

Determination of eligibility to use the vacation established in this Emergency Paid Leave pool will be by majority vote of this board. An adverse decision of this board may be appealed to the Union Executive Board and their determination shall be final.

METHOD OF DONATION
A. Contribution of vacation or CTO will be computed at the member's base hourly rate of pay (excluding premium or specialty pay).

B. Contribution may be made from earned vacation, CTO or cash only.

Conversion of Sick Leave to Vacation for purposes of donation to this pool will be immediately credited to the pool.

C. In a case where it has become known that an employee has been seriously injured or has a life-threatening illness and is in need of assistance from the Emergency Paid Leave Pool, contributions from accrued Sick Leave, bypassing vacation conversion, computed at the contributing employee’s base hourly rate of pay (excluding premium or specialty pay) may be made for the benefit of that specific employee who has the need.

D. Employee may authorize the City to automatically convert vacation that should be accrued to the employee to the pool when the employee's vacation accrual has reached the maximum allowed.

E. Funds contributed to the Emergency Paid Leave Pool will be placed in an interest bearing Trust Fund. The Trust Fund will be accumulated in total dollars. No record of number of hours contributed to the Pool will be maintained. An employee making a donation to the Pool will not have a vested right to the amount donated.

F. Employees may contribute earned vacation, CTO or cash to the Emergency Paid Leave Pools of other City bargaining groups.

USE OF POOL
A. Employee must have a verified emergency need for time off to request Emergency Paid Leave from the pool. Medical emergencies for the employee or dependent shall be verified by a doctor's certification and shall include the anticipated duration of the medical emergency. An employee’s initial request to use leave from the Emergency Paid Leave Pool shall be made to the City’s Director of Human Resources (or designee). The Director of Human Resources (or designee) shall make an initial determination regarding whether the employee’s request to use Emergency Paid Leave is for a verified medical emergency. The Director of Human Resources (or designee) shall notify the rest of the Board of the name of the individual making the request, the date of the request and whether or not the individual’s request qualified as a verified medical emergency need under this section. Nonmedical emergencies shall be verified by certification acceptable to the Board and shall include the anticipated duration of the emergency.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

B. Employee must have exhausted appropriate paid leave (sick leave including eligible conversion to vacation, vacation or CTO) prior to becoming eligible to request vacation benefits from the pool.

C. The maximum time available from the pool (subject to the assets of the pool) will be 160 hours (two [2] pay periods) for Emergency Paid Leave benefits due to the illness or injury of the employee or the maximum allowable accrual of vacation for emergency needs of the family of the employee.

D. Emergency Paid Leave will be deducted from the pool based upon the employee's base hourly rate of pay (excluding premium or specialty pay).

E. Emergency Paid Leave hours will not be available for use until the pay period following the approval by the Union.

F. Use of Emergency Paid Leave from the pool will be treated in the same manner as use of regular vacation. The employee will continue to accrue sick leave, vacation, insurance coverage and other benefits in the same manner as he/she would if using regularly credited vacation.

G. Emergency Paid Leave, which has been credited to the employee, and has not been used when the emergency has terminated, will be reinstated to the pool. Vacation, sick leave and other benefits, which have accrued to the employee, will remain in the employee's account.

25. LIMITED/ALTERNATIVE DUTY
A. Job Related Illness or Injury
Employees who have a job-related illness or injury which requires him/her to be off work under Workers' Compensation will be assigned to limited or alternative duty under the following condition:

Supervisors shall be advised of the medical condition of any industrial injury as soon as practical. Upon receipt of a Doctor's report which provides work limitations, the City may identify a regular or modified assignment for which the employee has the required experience and training to be eligible for assignment to.

Such assignment may be based upon a 40 hour per week or less basis, if mutually agreed between the City and the employee.

Employees who have a job related illness or injury which requires him/her to be off work under Workers' Compensation or who do not qualify for limited or alternative duty will be reassigned to a Monday through Friday work schedule to keep required medical or other workers' compensation commitments.

B. Non Job-Related Illness, Injury or Condition
Employees who have a non-job related illness, injury or condition which requires him/her to be off work may request to be assigned to limited or MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

alternative duty. Nothing in these provisions is intended to imply that an employee has a right to a limited/alternative duty assignment, unless expressly provided by law. Such request will be accommodated unless no appropriate limited or alternative duty assignment is available under the following conditions:
1) Identification by the City of a regular or modified assignment for which the employee has the essential experience and training to be eligible for assignment to. Such assignment may be based upon a 40 hour per week or less basis, if mutually agreed between the City and the employee. 2) Upon a written release from his/her doctor, subject to review by the City doctor, which allows the employee to perform all of the duties of the contemplated assignment.
3) Employees may account for his/her regular work schedule through a combination of limited or alternative duty hours and sick leave or other paid leave sufficient to maintain eligibility for regular accrual of benefits.

Under both of these limited or alternative duty assignments employees will be required to work their regularly scheduled number of hours (normally forty (40) hours) per week, unless such assignment is modified by mutual agreement between the City and the employee. It is recognized that performance of limited or alternative duty assignments will not be permitted to interfere with any medically related treatment designed to assist the employee to return to full, unrestricted duty in the earliest possible time frame.

All such assignments, and their duration, are temporary assignments and are subject to periodic sixty (60) day review of the employee's continued need for limited or alternative duty, the employee's continued ability to perform the limited or alternative duty and the department's ability to continue the employee in the assignment. All temporary assignments shall be at the employee's regular rate of pay.

In the event the Americans With Disabilities Act requires modification of the provisions of this section, it is agreed that the law will prevail.

26. LAY-OFF POLICY
A. The need for a layoff shall be determined by the City Manager. One type of layoff is a reduction in force necessitated by financial shortfalls or deficits. In the case of a reduction in force, the City Council shall adopt a resource allocation plan. The resource allocation plan shall contain reasons for reduction and a listing of programs which are affected, and the specific City classifications and numbers within each classification that shall be reduced.

B. In the event of a layoff, the City agrees to meet-and-confer on the impacts of the layoff with AFSCME at least thirty (30) days prior to the effective day of the layoff. The parties discussion of a reduction in force shall include AFSCME recommendations as to how best to accomplish the reduction in MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

force process with the least impact on represented employees, and to explore alternatives such as reductions in work hours, freezing of merit pay increases or similar programs which will result in reducing the City's labor costs.

If the City implements a reduction in work force, the City will administer the lay-off policy consistent with the following concepts:

C. Order of Layoff
The order of lay-off shall be as follows:
1) In the case of a reduction in force as defined above, temporary (asneeded) employees performing any of the duties of the classification identified for reduction;
2) Probationary employees in the classification identified for reduction; 3) Permanent employees in inverse order of seniority within the classification identified for reduction.

Seniority shall be determined by the length of current continuous permanent service with the City regardless of classification in which employed.

Continuous service shall be defined as that which has not been interrupted by separation of service from the City. Seniority shall be retained, but shall not accrue, during any period of authorized leave without pay (more than 5 days), except for military leave.

D. Notice: When the City intends to lay-off a represented employee, notice to the employee shall be in writing at least thirty (30) days prior to the effective date of the lay-off. AFSCME shall receive concurrent notification of lay-off.

The notice of lay-off shall contain the following:
1) Reason for lay-off
2) Effective date of lay-off
3) Opportunity to discuss with a representative of management 4) Conditions governing re-employment
5) Information regarding Unemployment insurance
6) The date by which the employee must notify Human Resources of his/her election, in writing, of a reassignment or bumping election.

E. Reassignment and Bumping: Employees identified for layoff shall have reassignment rights (bumping) as follows:
1) To the same classification in a different department or division based upon seniority as defined in Section C above.
2) Accept a position in a lateral or lower class in which he/she has permanent status, or a position in a lateral or lower class within the series containing the class from which the employee is being laid off, provided he/she is otherwise qualified and is more senior than the least senior employee in such lateral or lower class.
3) Accept a position in higher class, provided he/she has held permanent status in such higher class, and further provided that the employee's transfer from the higher class was voluntary and occurred during his/her MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

current period of employment and provided he/she is otherwise qualified and is more senior than the least senior employee in such higher class. 4) Accept a vacant position in a lateral or lower class for which he/she is otherwise qualified.

An employee must notify Human Resources of his/her election in writing including e-mail, within seven (7) calendar days of receipt of written notice the employee has been identified for layoff.

Any employee entitled to an option noted above, which involves assignment to a lower classification, may elect to be placed on lay-off in lieu of accepting such assignment to the lower class. In the event the employee elects to be placed on lay-off, such employee will only be recalled to the classification from which the employee elected to be placed on lay-off. The decision to not accept assignment to a lower classification may adversely affect the employee's ability to collect unemployment insurance.

F. Re-Employment/Re-Instatement Lists
The names of regular or probationary employees laid-off according to this policy, or who exercised re-assignment or bumping rights under Section E. above, will be placed on a re-employment list for the classification for which the employee was laid off, in the inverse order of the layoff. Individuals’ names will be retained on a re-employment list for the shorter of either three (3) years from the effective date of lay-off or the date on which a laid off employee rejects an offer of re-employment in the classification from which the former employee was laid off. Former employees while on the reemployment list that apply for positions at the City other than positions in the classification for which they were laid off shall have the same status and rights and application process advantages, if any, as current employees, assuming they meet the minimum qualifications for the applicable position.

Laid off persons who are re-employed under this provision shall be reinstated with/to the same seniority, pay step and pay step anniversary date and leave accrual rates as at the time they were laid off.

27. STEP INCREASES
Step increases will be applied as follows, subject to Section 27.F below:

A. Employees who have an anniversary date that falls within the first week of the pay period and who have been approved for a step increase will be adjusted on the beginning day of the pay period during which the anniversary date falls.

B. Employees who have an anniversary date that falls within the second week of the pay period and who have been approved for a step increase will be adjusted on the beginning day of the pay period immediately following the anniversary date.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

C. Employees who have passed their probationary period will receive a step increase on the pay scale for their job classification each year on their anniversary date until reaching salary Step ‘5’.

D. Employees will receive an increase to Step ‘6’ on their anniversary date on the pay scale for their job classification if they are at Step ‘5’ for at least one year and have at least ten years of continuous, regular City service.

E. Employees will receive an increase to Step ‘7’ on their anniversary date on the pay scale for their job classification if they are at Step ‘6’ for at least one year and have at least fifteen years of continuous, regular City service.

F. Effective January 1, 2021, salary steps will be frozen for one (1) year. This means that employees holding positions in classifications assigned to Unit 6 shall be ineligible for a salary step increase until the employee’s Step Increase Date after December 31, 2021.
1) For example, if an employee is at Step 3 as of January 1, 2021, and would have otherwise been eligible for a salary step increase to Step 4 on March 1, 2021, the employee would not be eligible for a salary step increase to Step 4 until March 1, 2022, the employee’s Step Increase Date after December 31, 2021.

28. VOLUNTARY TIME OFF (VTO)
Employee participation in this plan is contingent upon the City's understanding and agreement that employee participation cannot be interpreted as anything other than a temporary and limited good faith effort being made by the employee to do his/her part to help ease the current budget crisis. This is not to be construed as a representation of employee commitment to a permanent program or an admission of any kind that the employee would not be harmed by such a plan becoming mandatory.

Employees may request voluntary unpaid time off under the following conditions:

A. Approval of a work schedule that does not adversely impact the operations of the department or other employees in the work unit with the approval of the Department Head and the City Manager.

B. No impact on either sick leave or vacation accrual if sufficient hours are worked in a pay period to entitle the employee to his/her regular accrual rate for either benefit.

C. No reduction of insurance premium payment or refund as long as sufficient hours are worked to allow for full payment of the premium for an employee working a full time work schedule. If the number of hours worked is less than the number required for full payment of premiums or refunds, the premium or refund payments will be reduced in proportion to the hours required to gain full credit.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

D. Voluntary time off may be taken without the employee first using all of his/her accrued Compensatory Time Off (CTO).

E. Employee may cancel his/her participation in the program with a notice time agreed upon at the time of the granting of the request that will be sufficient to allow the department head to accommodate the request.

F. Cancellation of the employee's participation in the program will be at the discretion of the Department Head with the approval of the City Manager.

29. DISABILITY INSURANCE
A. State Disability Insurance
The City will continue to contract with the State of California Employee Development Department to provide Disability Insurance (SDI) for represented employees. All cost of SDI insurance is to be paid for as a payroll deduction by the individual employee.

B. Long Term Disability
All represented employees will continue to be enrolled in mandatory long term disability insurance which will provide no less coverage for the employee than the program in place on January 1, 1995 which are a 60 day waiting period and will pay 60% of the employee's monthly salary up to a maximum amount set by the contract between the Union and the insurance carrier.

The maximum monthly benefit will be no less than an amount set by the contract between the Union and the insurance carrier, including those offsets required by law such as, but not limited to, SDI, retirement, reduced work schedule, worker's compensation, social security, and Railroad retirement.

The maximum monthly premium will be deducted from each employee's total compensation on a post-tax basis.

The City, as provided for under Section 414(h)2 of the Internal Revenue Service Code, continues the practice of reporting the employee contribution to CalPERS as tax deferred.

30. INDUSTRIAL INJURY/CONTINUATION OF INSURANCE BENEFITS WHILE ON WORKERS’ COMPENSATION
Workers authorized by the City's Workers' Compensation Administrator to undergo therapy or treatment due to an industrial injury, who are required to leave work, shall receive leave with pay, including reasonable travel time, providing the treatment falls within the normal working hours, is pre-scheduled and cannot be scheduled during non-work hours.

The City will continue payment toward health, dental, vision and life insurance coverage for the employee and dependents as set forth in Section 3 for an employee who is disabled from work because of a work related injury if the employee is no longer in a paid status sufficient to continue the coverage MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

afforded under the terms of the program, subject to the following conditions:

A. The employee may not increase the existing coverage after the date of injury except to add children born within nine months of the injury.

B. Continuation toward payment of dependent health/dental/life insurance coverage is limited to one (1) year from the date of injury. Continuation toward payment of employee health/dental/life insurance coverage is limited to one (1) year from the date of injury, unless the employee continues to be on temporary disability status for a Workers Compensation injury.

C. The employee has supplemented his/her workers' compensation benefit with sick leave, vacation, CTO or other paid leave sufficient to qualify for payment of the health/dental/life insurance premium and is no longer entitled to any salary from the City.

31. FLEXTIME
The City agrees to continue the current reference in the MOU to a Flexible Work Schedule provided in Section 18 of the MOU. Control over the operation of the flexible work schedule will continue to be as specified in CMD #46.

32. AUTOMOTIVE TECHNICIAN TOOLS REIMBURSEMENT
Within the Streets and Automotive Services Department, the following classifications are required to provide tools of the trade as a condition and requirement of employment:

Automotive Technician I
Automotive Technician II
Automotive Technician III
The Department determines minimum tool requirements based upon individual job descriptions and the current fleet composition. Criteria used in determining whether a specific tool should be supplied by the organization or be required of the employee includes cost, frequency of use, and securement of the item, and generally follows the accepted standards of the industry. A list of the tools currently used is attached and referenced in Exhibit A.

All tools may be inspected by the Department to assure that they are of sufficient quality and condition, which will provide safe, damage-free usage. Tools that are deemed of poor condition, quality, inappropriate, or an unnecessary risk to the City may be rejected from the respective employee inventory and the City may require the employee to remove said item from the workplace.

Affected employees shall be entitled to reimbursement of up to $500 per fiscal year. Employees are obligated to maintain and submit receipts for reimbursement. Employees are required to submit all receipts for which employees seeking reimbursement for a particular fiscal year no later than June 10th of the applicable fiscal year.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

33. RELEASE TIME FOR UNION OFFICERS AND STEWARDS
A. Time Off For Union Representation
1) MEET AND CONFER/CONSULT: Up to five (5) designated members of the Union shall be allowed time off without loss of compensation for purposes of meeting and conferring or meeting and consulting with City representatives on matters within the scope of representation. In addition, for purposes of MOU negotiations, the up to five (5) members of the Union shall also be afforded a total of two (2) hours’ time off without loss of compensation before and/or after each MOU negotiations meeting. 2) The Union President or designee shall be authorized release time to appear before the Civil Service Commission and the City Council at meetings when such bodies are considering matters affecting the bargaining unit and to attend meetings called by the City Administration regarding matters affecting the bargaining unit.
3) Members of the Union’s Executive Board (E-Board) shall be provided up to one (1) hour of paid release time per month for the purpose of E-Board meetings. The Union shall provide the City the names of City employees on the E-Board eligible for paid release time under this provision. The Union shall provide the City advance notice of scheduled monthly EBoard meetings in order for the City to notify Departments of the release time.

B. Stewards
1) Employees selected by the Union to act as Union representatives shall be known as "stewards". The Union may select one (1) steward for every division with classifications represented by the Union. The names of employees so selected and the areas to which they are assigned shall be certified in writing to the City by the Union. In the absence of the steward, an alternate may be appointed by the Union President. Stewards, during regular working hours, shall be permitted to investigate and present grievances to the City without loss of pay, provided that the steward is first excused by his/her supervisor. Permission to perform steward functions shall not be unreasonable denied by the City. 2) If it becomes necessary during the course of his/her investigation for a steward to contact an employee in another department or division, the steward shall notify the supervisor of that department or division of the purpose of his/her investigation. When the investigation is complete, the steward shall promptly report back to his/her supervisor.

34. DISCIPLINARY RIGHTS
In the event of a suspension, dismissal, involuntary demotion or reduction in pay, the City will provide the employee with a "Notice of Proposed Disciplinary Action" and a "Skelly" hearing prior to the imposition of the discipline. The employee has the right to representation by his/her representative if requested.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

Following the "Skelly" hearing, the City shall provide the employee with a "Notice of Final Disciplinary Action" which sustains, modifies or cancels the original action based upon the facts presented. The employee may appeal the final decision of the Appointing Authority (City Manager) to the Civil Service Commission by filing a written request with the Secretary of the Commission and the Appointing Authority within ten (10) calendar days from the date of the written notice of action taken. If an appeal is filed, the Appointing Authority will give consideration to a delay in the implementation of the disciplinary action pending a hearing and decision by the Civil Service Commission unless the Appointing Authority believes there exists compelling reason to take immediate action.

REPRESENTATION
Whenever an employee is required to meet with a supervisor and the employee reasonably anticipates that such meeting will involve questioning leading to a disciplinary action, he/she shall be entitled to have a steward present if he/she requests. (See e.g. National Labor Relations Board v. J. Weingarten, Inc. 420 U.S. 251, 955.Ct.959)

35. REST PERIOD FOLLOWING EMERGENCY WORK
Any employee working eight (8) or more hours at the overtime rate during the fifteen (15) hour period immediately preceding the beginning of his/her regular work shift shall be entitled to a rest period of twelve (12) consecutive hours on the completion of such overtime work with the following provisions:

A. No employee shall be required to work in excess of sixteen (16) hours without rest unless an emergency is investigated and continued work is deemed necessary to prevent extreme property damage or to preserve human life.

B. If the rest period overlaps the employee’s regular work shift in whole or in part, the employee will be paid at the straight-time rate for the time within the first eight (8) hours of the rest period which falls within the employee’s regular work shift.

C. If the rest period overlaps a portion of the first half of the employee’s work shift, the employee may be excused from work until the beginning of the second half of said shift. If the rest period overlaps a portion of the second half of the employee’s work shift, the employee may be excused from work until the following work shift. The employee will only be paid for that portion of the rest period which falls within the first eight (8) hours of the rest period and which overlaps the employee’s normal working shift. The employee will not be paid for the time between expiration of the rest period and his/her reporting for work. The employee also will not be paid for the ninth through twelfth hour of the rest period.

D. Hours worked prior to a rest period shall not be included in determining another rest period.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

E. If the employee is called back to work during the employee’s rest period, a new rest period will commence at the conclusion of such work.

F. Any employee who works a minimum of three (3) hours of emergency overtime between the hours of 11:00 p.m. and 6:00 a.m. will receive an eight (8) hour rest period commencing at the time of release from duty.

G. Notwithstanding the foregoing, if the employee is required to work during regular work hours on a work shift without having had a rest period of eight (8) hours, for which he/she has qualified as set forth above, he/she shall be paid at the overtime rate for all work performed until he/she has been released from duty for at least eight (8) hours.

36. VOLUNTARY EMPLOYEE BENEFICIARY ASSOCIATION (VEBA)
The City established a Voluntary Employee Beneficiary Association (VEBA) trust under Internal Revenue Code Section 501(c)(9) for the purpose of providing a defined contribution post-retirement medical benefit for employees. The City previously stopped making contributions to employee VEBA accounts effective December 21, 2003 through December 26, 2009 and employee VEBA accounts remained open for other potential contributions. Effective December 27, 2009, the City began contributing $50 per month per represented employee. Per the City’s contract with VEBA, VEBA’s consulting fee will be deducted from plan participant’s accounts. These contributions shall be included on the Bay Area ERS total compensation surveys. Specific information regarding the Plan will be referenced in the Plan Document.

A VEBA is a tax-exempt trust account formed under Internal Revenue Code Section 501(c)(9) designed to accumulate assets to fund the future payment of qualified medical expenses (including specified insurance premiums). At retirement, participants may withdraw the accumulated plan benefits to pay for unreimbursed health insurance premiums, qualified long-term care insurance premiums, and other qualified unreimbursed medical expenses and will not be taxed under current state and federal law. Withdrawals cannot be made for nonmedical purposes.

37. RETIREE MEDICAL REIMBURSEMENT
The Retiree Medical Reimbursement Benefit shall provide each employee who retires from the City with at least ten (10) years of regular City service with a reimbursement for unreimbursed single retiree health insurance premium beginning with the second full month after retirement from City service and ending with the last full month before the retiree’s sixty-fifth (65th) birthday.

Starting with the month in which the retiree turns age sixty-five (65), the reimbursement will be for unreimbursed Medicare single retiree supplemental health insurance premium. For premiums paid in calendar year 2017 that will be reimbursed in 2018, the City will reimburse an amount up to $343 per month, including the PEMHCA minimum, for unreimbursed single retiree health insurance premium or up to $205 per month, including the PEMHCA minimum, for unreimbursed Medicare single retiree supplemental health insurance premium. The amount of the City reimbursement will be adjusted thereafter once MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

each year by the percentage change from October to October in the San Francisco-Oakland-San Jose urban wage earners and clerical workers (W) consumer price index from the prior year, but in no event will be increased more than 3.5%.

Beginning in 2004, the City will pre-fund this benefit with an amount to be determined by an actuary.

Each retiree will be required to submit proof of health insurance coverage to the City each year. The City will pay the reimbursement in a lump sum payment once per year.

38. FLEXIBLE SPENDING PLAN INTERNAL REVENUE CODE SECTION 125 The City will make available a Flexible Spending Plan under the Internal Revenue Code Section 125 for employees. Employees may contribute pre-tax (federal, state, FICA, Medicare) dollars for dependent care and qualified unreimbursed medical expenses. This Plan will follow the regulations outlined by the Internal Revenue Code. Detailed information will be available in the Summary Plan Document.

The City will pay the administrative expenses for the plan. This Plan is voluntary and participating employees will pay the monthly participation cost. The monthly participation cost will be considered pre-tax, as defined above, under Internal Revenue Code Section 106. Participating employees will be provided with an Employee Plan Summary and regular statements regarding the status of their flexible spending accounts.

39. DOMESTIC PARTNERS
The City shall make all benefit programs available to employees, dependents and domestic partners, subject to the requirements of each benefit provider.

40. PAY PERIODS
Allowances/payments or accrual rates that are an agreed upon amount per month or year but are paid for administrative purposes in incremental amounts each pay period, shall be the same total amount per year in years in which there are 27 instead of 26 pay periods. This clarification is not intended to and would not modify anyone’s salary/pay rate.

41. NEXT MEMORANDUM OF UNDERSTANDING
AFSCME and the City agree to commence negotiations on a successor MOU no later than three months prior to the expiration date of this MOU.

42. INTEGRATED MEMORANDUM OF UNDERSTANDING
During the negotiations leading to this MOU, both the City and AFSCME had the full opportunity to make any proposals they deemed appropriate for a successor MOU, and all of the agreements reached by the parties during MOU negotiations MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

are set forth in this MOU. Accordingly, neither party shall be required to meet and confer regarding any provision of this MOU during the term of this MOU (unless such provision is contrary to law), and any changes to any provision not contrary to law within this MOU will only be effective by mutual agreement.

43. MANAGEMENT RIGHTS
Subject to State law and the provisions of City of Santa Clara EmployerEmployee Relations Resolution, and the terms of this MOU, the rights of the City through its Council and Management include, but are not limited to: the exclusive right to determine the mission of its constituent departments, commissions and boards; set standards of service; determine the procedures and standards of selection for employment and promotion; establish and enforce dress and grooming standards; direct its employees; determine the methods and means to relieve its employees from duty because of lack of work or other legitimate reasons; maintain the efficiency of governmental operations; determine the methods, means and personnel by which government operations are to be conducted; determine the content and intent of job classifications; determine methods of financing; determine style and/or types of City-issued wearing apparel, equipment or technology to be used; determine and/or change the facilities, methods, technology, means, organizational structure and size and composition of the work force and allocate and assign work by which the City operations are to be conducted; determine and change the number of locations, relocations and types of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right to contract for or subcontract any work or operation of the City; to assign work to and schedule employees in accordance with requirements as determined by the City including but not limited to: establish and change work schedules and assignments upon reasonable notice; establish and modify productivity and performance programs and standards; discharge, suspend, demote, reprimand, withhold salary increases and benefits, or otherwise discipline employees for cause; establish and modify probationary periods and reasonable employee performance standards including, but not limited to, quality, and quantity standards; and to require compliance therewith; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work.

The City Council on its own behalf and on behalf of the City hereby retains and reserves unto itself all rights, power, authority, duty, responsibility and obligations conferred on and vested in it by the laws and Constitutions of the State of California and the United States of America. The exercise of such rights, power, authority, duty, responsibility and obligations by the City Council and the adoption of such rules, regulations, policies as are necessary and as they apply to employees represented by the Union shall be in accord with this Memorandum of Understanding to the extent that they do not violate any of the reserved duties, responsibilities and obligations conferred on and vested in it by the laws, Charter of the City, Constitutions of the State of California, and the United States of America.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

FOR THE CITY OF SANTA CLARA: FOR AFSCME LOCAL 101/UNIT NO. 6 `
Aracely Azevedo,
Director of Human Resources
Carol McEwan, AFSCME Local 101
Lead Negotiator
Date:

Date:

Marco Mercado,
Assistant Director of Human Resource
Armando (Gary) Ferraris,
President
Date:

Date:

Ashley Lancaster,
Human Resources Division
Manager

Cliff Myers,
Vice President
Date: Date:

James Dudley
Date:

APPROVED:

Rajeev Batra, City Manager Date
APPROVED BY THE CITY COUNCIL ON:

ATTEST:

City Clerk Date
MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

EXHIBIT A

TOOL LIST
Pliers - various
Side Cutters
Needle Nose Pliers
Hose Clamp Pliers
Wire Strippers
Wire Crimpers
Wire Grips
Tweezers
Hammers - Dead Blow, Brass, Ball
Pean
Punch Set
Chipping Hammer
Pry Bar
Philips Screwdrivers
Standard Screwdrivers
Torx Driver t15 - t27
Standard Wrenches ¼” - 1 ¼”
Metric Wrenches 6mm - 27mm
Std. Allen Wrenches 1/16” - 3/8”
Metric Allen Wrenches 1.5mm - 10mm
Crows Foot Wrenches 3/16” – 1”
Crescent Wrenches
Tube Wrenches - Metric & Standard
¼” Drive Ratchet
¼” Drive Std. & Swivel Sockets
3/16” - ½” Std. deep
¼” Drive Metric Sockets 5mm - 14mm
¼” Ratchet Extensions - various
¼” U Joints
¼” Drive Torx - male/female
3/8” Drive Ratchet
3/8" Drive Std. & Swivel Sockets
3/8" - 7/8” Std. deep
3/8" Drive Metric Sockets 9mm - 19mm
deep standard
3/8" Ratchet Extensions - various
3/8" Drive Torx - male/female
3/8” U Joints
½” Drive Air Impact
½” Drive Std. & Swivel Sockets
7/16” – 1” Std. deep
½” Drive Metric Impact Sockets
10mm - 27mm
½” Ratchet Extensions - various
½” Drive Torx - male/female
½” U Joints
Power Tools
Air Drive Cut Off Tools
Air Drive Drill
Long Drill Bits
Air Ratchet 1/4", 3/811, 1/211 drive
Air Rotary Wire Brush
Anti Freeze Tester
Battery Post Cleaner
Post &'Side Post
Blow Guns
Brushes - Wire Hand Held
Brushes - Stainless Steel
Brushes - Brass
Brushes - Steel
DVOM
Files - various
Mill, Knife, Taper, Flat,
Bastard
Flashlight
Gasket Scrapers
Hack Saw
Magnets
Mechanical Fingers
Mirror Hand Held Swivel Head
Roll Bar
Scissors
Soldering Iron
Steel Scale
Squares - Large & Small
Tape Measure 6’ – 25’
Test Light
Test Leads
Tire Depth Gauge
Upholstery Tools
Utility Knife
Vacuum Gauge
MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

MECHANIC'S HELPER TOOL LIST
Pliers 3 sizes
Side Cutters
Needle Nose Pliers 2 sizes
Wire Strippers
Wire Crimpers
Tweezers
Hammers 2 sizes
Punch Set
Gasket Scrapers
Philips Screwdrivers 3 sizes
Standard Screwdrivers 3 sizes
Torx Driver t15 - t27
Tire Depth Gauge
Test Light
DVOM
Flashlight
Tape Measure
Standard Wrenches ¼” -1 ¼”
Metric Wrenches 6mm - 27mm
Standard Allen Wrenches 1/16” - 3/8”
Metric Allen Wrenches 1.5mm - 10mm
¼” Drive Ratchet
¼” Drive Standard Sockets 3/16” - ½”
¼” Drive Metric Sockets 5mm - 14mm
3/8” Drive Ratchet 3/8” Drive Standard
Sockets 3/8” - 7/8”
3/8” Drive Metric Sockets 9mm - 19mm
½” Drive Air Impact
½” Drive Standard Impact Sockets 7/16”
– 1”
½” Drive Metric Impact Sockets 10mm -
27 m
Recognized industrial/professional
standard quality i.e., Snap On, Mac,
Craftsman, etc.

MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

EXHIBIT B

CROSS REFERENCE TO PERTINENT EMPLOYMENT RELATED MATERIALS The following list is intended to provide the employee with a basic reference to materials related to his/her employment. Materials which are not generally distributed to each employee are available for review through his/her department or the Human Resources Department. Failure to include material in this reference list does not relieve the employee of responsibility for knowledge of the City rules, regulations or operational procedure.

A. MEMORANDUM OF UNDERSTANDING. Contains the most current modifications to the conditions of employment between the Bargaining Unit and the City. Supersedes existing conditions contained in related materials.

B. PERSONNEL & SALARY RESOLUTION. (Resolution 4652 or successor resolutions).

Contains the existing rules & regulations pertaining to conditions of employment, benefits and other elements of employment. This is a compilation of all MOUs between the various Bargaining Units and the City. Individual elements will have been superseded by the current MOU.

C. EMPLOYER-EMPLOYEE RELATIONS RESOLUTION. (Resolution 2979). This governs the method by which the Bargaining Units are determined and sets the guidelines on employee representation and bargaining under the law.

D. CIVIL SERVICE RULES & REGULATIONS. The Civil Service system of employment is regulated by these rules & regulations. The document defines the methods by which prospective employees may qualify for Civil Service employment and current employees qualify for promotional opportunities. This document also defines the method by which an employee may appeal a disciplinary action or grievance.

E. EMPLOYEE MANUAL & NEW EMPLOYEE ORIENTATION MATERIALS. This manual is a compilation of the various materials that a new employee is expected to be aware of and contains materials from A, C, and D above, as well as information pertaining to the various benefits an employee is entitled to by virtue of his/her employment with the City of Santa Clara. Materials having to do with the various insurance programs or changes to the benefits are distributed to current employees as they are changed. Also included in each new employee orientation packet is the Code of Ethics, the CMD on Gifts & Favors, the Performance Evaluation, and the City Manager’s Policy on Discrimination.

F. FRINGE BENEFIT SUMMARY. This document summarizes all of the benefits available to regular employees as a result of their employment and is distributed periodically to all employees.

G. AFFIRMATIVE ACTION PLAN AND CITY MANAGER’S POLICY ON DISCRIMINATION. These documents set forth the City’s policy for non-discrimination in employment and the methods by which the City takes steps to ensure equal employment opportunities for all.

H. CITY CHARTER. This document provides the legal basis upon which the City operates.

I. CITY ADMINISTRATIVE CODE. This document defines the methods by which the City MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

operates generally under the City Charter.

J. CLASSIFICATION PLAN & SALARY SCHEDULES. This document allocates each classification in the City to a range on the individual Salary Schedule. The Salary Schedule defines the pay rate at each step on a salary range.

K. CITY MANAGER DIRECTIVES. These directives provide the operational procedures that have been adopted by the City Manager to ensure an orderly conduct of City business. All of the 121 current CMDs apply to all of the City’s employees. However, the following listed CMDs have particular application to the employees of this Bargaining Unit.

NO. TITLE
2A Procedures for Reporting Injuries & Property Damage
7 Leave of Absence without Pay Procedures
8 Safety Seat Belts
12 Citizens Complaint or Service Request
15 Meal Policy for Emergency and Overtime Work
18 City Operating and Maintenance Procedures
22 Media Responses/News Releases
25 Jury Duty
26 In-Service Training
30 Standards of Sick Leave Usage
31 Transaction of Personal Business During Working Hours 33 Employment of Relatives
34 Employee Suggestion Program
36 Smoking in the Work Place
37 City Safety Program
39 Overtime Work for Classified Employees
45 Vehicle and Equipment Accident Review Committee
46 Flexible Work Schedules
47 On the Job Personnel Grievances
51 Employment other than City Duty
59 Return to Duty Work Following Industrial Injury/Illness 67 Gifts and Favors to Individuals
70 Gifts to the City
72 Automatic Payroll Deposit Plan
73 Normal Work Schedules
75 Employee Cleanup Policy
75A Safety Glasses
Personal Use of City Phones
82 Political Activities
Unit Composition
85 Reporting of Industrial Injuries/Illnesses
86 Workplace Security
90 City Procedure in Case of Death of City Employee
93 Formal Disciplinary Action – City Employee
94 Temporarily Working in a Higher Classification
97 Voluntary Separation/Retirement Interviews – Classified and Unclassified (a) Civil Court Subpoenas – Service on City Employees
MEMORANDUM OF UNDERSTANDING – Unit # 6 (January 2021 – December 2024)

102 Employee Identification Card Program
110 Employee Liability
111 Consumption of Alcoholic Beverages
112 Emergency Medical/First Aid Treatment
113 Dress and Grooming Code
114 Inclement Weather Policy for Field Personnel
115 Employee Medical Information
116 Use of City Resources
(2) Public Contact
120 Drivers’ License Requirements
122 Hazardous Materials Use, Handling, Storage, Disposal, Response 131 Equal Employment Opportunity
L. PERSONNEL POLICY AND PROCEDURE RE: ALCOHOL AND CONTROLLED

SUBSTANCE USE FOR DRIVERS PERFORMING SAFETY SENSITIVE (HIGHWAY) FUNCTIONS. This document provides the City’s policy in compliance with the Federal Department of Transportation regulations.

M. EMPLOYEE PERFORMANCE APPRAISAL STANDARDS AND GUIDELINES.

City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-707 Agenda Date: 5/24/2022

REPORT TO COUNCIL

SUBJECT
Action to Waive Second Reading and Adopt Ordinance No. 2047 Approving the Westwood Oaks Park Master Plan Update and Preferred Playground Schematic Design, in Accordance with City Charter Section 714.1

BACKGROUND
At the April 19, 2022 Council meeting, proposed Ordinance No. 2047 was passed for the purpose of publication. Pursuant to City Charter Sections 808 and 812, a summary of proposed Ordinance No. 2047 was published to the Santa Clara Weekly on May 18, 2022, and copies were posted in three public places.

Proposed Ordinance No. 2047 would approve the Westwood Oaks Park Master Plan Update and Preferred Playground Schematic Design, in accordance with City Charter Section 714.1.

DISCUSSION
The approval of an update to the Westwood Oaks Site Plan may be subject to Measure R. In November 2016, voters passed Measure R, which added Section 714.1 Protection of Parkland and Public Open Space to the City Charter. Measure R prohibits selling, leasing, or otherwise disposing of parkland for a period of one hundred eighty (180) days or more, and also prohibits its use from changing, being abandoned, or discontinued without such sale, lease, disposal or changed use having first been authorized or ratified by a two-thirds majority vote of the electorate during a general municipal election for that purpose. Measure R also prohibits changes in park use for over 180 days without a majority vote of the electorate and substantial building, construction, reconstruction, or development upon dedicated parkland except pursuant to ordinance subject to referendum. The referendum process is set forth in the Elections Code.

The Westwood Oaks Park Master Plan Update and the proposed Playground Schematic Design, if approved, will include changes to the existing park that may be considered as “substantial building, construction, reconstruction, or development.” The approval of the proposed site Master Plan, Playground Schematic Design, and any subsequent park rehabilitation of the restroom and recreation building will require an ordinance in order to comply with Measure R. It does not include a sale, lease, disposal, or change in use requiring a majority vote of the electorate. Therefore, staff recommends that the Council approve the Westwood Oaks Master Plan Update, preferred Playground Schematic Design and introduce an ordinance to ensure compliance with Measure R.

The ordinance will be introduced tonight and return to Council at a second meeting for adoption in accordance with City Charter sections 808 and 812.

ENVIRONMENTAL REVIEW
The action being considered is categorically exempt from the California Environmental Quality Act City of Santa Clara Page 1 of 3 Printed on 5/19/2022
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(“CEQA”) pursuant to the following sections of the CEQA Guidelines:
· Section 15302 (Class 2 - Replacement or Reconstruction), in that the project would replace and reconstruct existing facilities on the same site and with substantially the same purpose and capacity as the structure replaced. The proposal would replace the existing loop path and site paving, which is in a degraded condition, with a new loop path and paving of equivalent capacity.

In addition, the proposal would repair and renovate the existing half basketball court without expanding its capacity.
· Section 15303 (Class 3 - New Construction or Conversion of Small Structures), in that the project will construct limited numbers of new, small facilities or structures and equipment. The proposal would expand the existing playground area by approximately 3,000 square feet and put new playground equipment in the existing park.
· Section 15304 (Class 4 - Minor Alterations to Land), and 15304(b) (Class 4(b) - replacement of existing landscaping with water efficient landscaping), in that the project would make minor alterations in the condition of land, water and/or vegetation which do not involve the removal of healthy, mature scenic trees, and would include the replacement of existing conventional landscaping with water efficient landscaping. The proposal would remove the unhealthy eucalyptus trees, and entry trees, that have structural issues and present safety concerns and replace them with drought-tolerant species.
· Section 15311 (Class 11 - Accessory Structures), in that the project would construct or replace minor structures accessory to existing commercial, industrial, or institutional facilities (including publicly owned parks). The project would replace existing playground equipment and construct new playground equipment at the existing park. In a future phase, the project would construct or replace the existing restroom and recreation room to meet ADA Code and program requirements. · Section 15269(c), actions taken to prevent or mitigate an emergency. Several of the trees onsite are in a compromised structural condition, and numerous limbs have already fallen from those trees. The immediate removal of the trees is necessary for public health, safety, and welfare.

FISCAL IMPACT
The Capital Improvement Project budget for FY2021/22 includes an allocation in the amount of $1,149,800 for Project 3136 Westwood Oaks Park Playground Rehabilitation. The Project Phase 1 scope’s budget in the amount of $92,819 included community input, survey, Master Plan Update and development of the preferred Playground Schematic Design. The Project Phase 2 scope’s budget in the amount of $1,056,981 will include design development, public bid, construction, project administration, permitting including mobilization, general conditions, bonding, escalation, insurance, and City Project administration, based upon the approved Playground Schematic Design.

The preferred Playground Schematic Design (Attachment 2) base bid project elements are within the estimated construction budget of $641,981, with a budget contingency of $51,359 (8%) and construction contingency of $96,297 (15%) for total in the amount of $850,625. Given the current environment of supply constraints, labor and construction cost escalation, several of the aged park assets and infrastructure identified for renewal and replacement at Westwood Oaks Park have been placed onto an “add/alternate” list including the play berm, arch swing, planting area, picnic tables, loop pathway and basketball court. This add/alternate scope will be included in the Project only if construction bids are less than engineer’s estimate, or additional funds estimated at this time to be in the amount of approximately $1M are allocated at time of construction award. If unfunded, the design City of Santa Clara Page 2 of 3 Printed on 5/19/2022
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elements will be left for a future phase of park rehabilitation along with renovation of the restroom and recreation building. Westwood Oaks Park maintenance and operations activities are included in the Parks & Recreation Department’s operating budget.

COORDINATION
This Ordinance was coordinated with the City Manager’s Office.

PUBLIC CONTACT
A summary of proposed Ordinance No. 2047 was published to the Santa Clara Weekly on May 18, 2022, and copies were posted in three public places and made available for public inspection at the City Clerk’s Office.

Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

RECOMMENDATION
Waive Second Reading and Adopt Ordinance No. 2047 Approving the Westwood Oaks Park Master Plan Update and Preferred Playground Schematic Design, in Accordance with City Charter Section 714.1.

Reviewed by: James Sanchez, Interim City Attorney
Approved by: Rajeev Batra, City Manager

ATTACHMENTS

1. Ordinance
City of Santa Clara Page 3 of 3 Printed on 5/19/2022
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ORDINANCE NO. 2047

AN ORDINANCE OF THE CITY OF SANTA CLARA,

CALIFORNIA, APPROVING THE WESTWOOD OAKS PARK

MASTER PLAN UPDATE IN ACCORDANCE WITH CITY
CHARTER SECTION 714.1
BE IT ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:

WHEREAS, the Westwood Oaks Park ("Park"), located at 460 La Hernan Drive was dedicated as 1.75 acres of parkland (APN 316-12-001) on November 19, 1961; WHEREAS, in 2018 the Facility Condition Index Report rated the Park site as "critical', the building as "poor", and the playground was given a rating of "D"; WHEREAS, the Park was prioritized for rehabilitation and funding for the Westwood Oaks Park Playground Rehabilitation Project #3136 ("Project") was approved by Council in the City's Biennial Capital Improvement Program (CIP) FY2020/21 and FY2021/22; WHEREAS, the Park Master Plan Update will include renovation, expansion, relocation, new construction, and preservation of existing park amenities; WHEREAS, the voters of the City of Santa Clara passed Measure R in 2016, which added section 714.1 to the City Charter, which prohibits substantial building, construction, reconstruction, or development of parks and recreation facilities except pursuant to ordinance subject to referendum;
WHEREAS, the Park Project improvements constitutes as substantial building, construction, reconstruction and/or development, and is subject to Measure R; and, WHEREAS, the City Council desires to approve the Park Project improvements by ordinance in accordance with City Charter section 714.1.

NOW THEREFORE, BE IT FURTHER ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:

SECTION 1: That the City Council hereby approves the building, construction, Ordinance/Westwood Oaks Park Master Plan Update
Rev: 09/2019

reconstruction and/or development in accordance with the Westwood Oaks Park Master Plan Update and the Playground Schematic Design, attached hereto and incorporated by this reference, and in accordance with City Charter section 714.1 .

SECTION 2: Savings clause. The changes provided for in this ordinance shall not affect any offense or act committed or done or any penalty or forfeiture incurred or any right established or accruing before the effective date of this ordinance; nor shall it affect any prosecution, suit or proceeding pending or any judgment rendered prior to the effective date of this ordinance. All fee schedules shall remain in force until superseded by the fee schedules adopted by the City Council.

SECTION 3: This Ordinance shall not be codified in the Santa Clara City Code.

SECTION 4: Effective date. This ordinance shall take effect thirty (30) days after its final adoption; however, prior to its final adoption it shall be published in accordance with the requirements of Section 808 and 812 of "The Charter of the City of Santa Clara, California." PASSED FOR THE PURPOSE OF PUBLICATION this 19 day of April, 2022, by the following vote:

AYES: COUNCILORS: Becker, Chahal, Hardy, Jain , Park,
and Mayor Gillmor
NOES: COUNCILORS:

ABSENT: COUNCILORS: Watanabe
ABSTAINED: COUNCILORS:

ATTEST:

Attachments incorporated by reference :

1. Westwood Oaks Park Master Plan Update
and Playground Schematic Design , and
Measure R Ordinance PowerPoint
Ordinance/Westwood Oaks Park Master Plan Update
Rev: 09/2019
~ ASSISTANT CITY CLERK

CITY OF SANTA CLARA

Council Meeting
Westwood Oaks Park
Master Plan Update and
Preferred Playground
Schematic Design, and
Measure R Ordinance
April 19, 2022
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• Council Goal: Enhance community sports,
recreational and arts assets
• Capital Improvement Project #3136 • July 2021 – Design Contract • September 21, 2021 – PRC #1 • September 24, 2021 – Online Survey • September 25, 2021 – On-site Meeting • November 16, 2021 – PRC #2 • January 18, 2022 – PRC #3 • April 19, 2022 – Council Review/Approval 2 Background
Design Guidelines
• Incorporate Community Input: Preference for Tree themed playground • Integrate proposed park amenities with existing park features, trees and landscaping
• Support the City’s sustainability and age-friendly goals • Buffer adjacent neighbors from park use impacts
• Use research-based best practices: include all elements of play at beginner, intermediate and advanced levels, implement inclusion/universal design, accommodate added capacity
• Consider asset lifecycle maintenance costs
3 • Satisfy playground equipment grant guidelines
Westwood Oaks Park Rehabilitation Project -
Westwood Oaks Park - Existing Park Master Plan
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Access LA HERR,AN DR+
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Favorite Existing Park Amenities:
• Loop Path
• Play Area
• Quiet Seating Area
Preferred Park Improvements:
• Renovate and Expand Playground
• Maintain Grass Meadow
• Repair Loop Path
• Upgrade Drinking Fountain
• Improve Park Lighting
Park visit frequency:
• Very Frequently – 2+ times a week
• Frequently – 1 time a week
Preferred Playground Theme:

Tree House
5 • Option 3 design & play elements
Community Input - Sept. 2021 - Jan. 2022
•
Westwood Oaks Park – Pruneridge Ave
Master Plan Update
Pruneridge Ave
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@ Maintain Existin; Multi-Use Meadovv/ xim lawlil
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@ DrotJ -it l"olerantlS --·ory. Gard ··n
@ Fuwr-e Fte(:reation B ild1ng Rep1 cement
@ F:uture Re< rro -11'{-fl~e<ffll~I:

Preferred Playground Schematic Design
Option 3
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. ~ : 0 New Play-ground! Age 6-12.
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© Sand Play
© Musk: Pl:ty Zone
0 Pltncmg ~ with thl4e trees fnd ~
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® New selling area
0 Upgr.ide drinking fountain
@ lmprov. pa_rl< lighting
@ R.cpa_i,- 00nactc pa.th
@ Replace Eucafyptus Troe with <lrovght tolerant in. ,pccics @ Demonstration Gar-ctcri wich drought tolerant &p«iu
@ Sensory Garden
@ New Curb Cut Ramp/ADA IJlarl<in,g
@ New rH Fenc;e
@ Exlmng Restroom Fa.clfity
@ Exlifln,S open meadDW
@ Ext,un, Tree w be pttServ,eci
@ 13.uketball Court Refi_lm'
Park & Playground Rehabilitation Project 3136
Full Scope
Est. Cost=
$1.905M
Scope Area
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0 S_fld Pt
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0 Planting cl!ltout w ith srrade t:rees. and seat
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@ New Cu:rb Cut Ram;p!ADA parkin,e:
@ Ne'YY 4 · "H Fenc
@ Existing Restroom Fiiciltty
@ Ei-:isti open me--adow
@J Ex . i"g Tree to b.e p.-esc!i'\'ed
@ Basketball Court Re .air
Playground Rehabilitation Project 3136
Reduced Scope within Budget
Est. Cost=
$0.85M
(Est. Constr. $0.85M)
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Scope within Budget
Ci) Age 2-5 play equipment
® Age 6-12 play equipment
@ Swing Zone
0 Sand Play
@ New Pedestrian Pathway
@ Arrival Node
(f) Drinking Fountain
@ Site Lighting
® Planting Area
@ New Curb Cut Ramp/ADA parking
Playground Rehabilitation Project – Add/Alternate Items Add/Alternate Items (Est. Constr.)
($0.596M)
($0.150M)
($0.015M)
($0.162M)
($0.131M)
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(Est. (Est. Constr. Constr. $0.85M)
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@ .Arr:ival Node
(z) Drinking Fountain
@ Site Lighting
® Planting Ar ea
@) New Curb Cut Ramp/ADA parking
12 Preferred Playground Schematic Design - Ages 2-5
Suspension
Bridge
Merry-Go-All Web
Tail
Rock
Step
Swerve
Zip Slide
Roller
Slide
Ladder
Loop Bongos
Plank
Climber
Stump
Platform
Wilderslide
Double Twin
Spiral
Forked
Log
Balance
Beam
VistaTwist
Tower 2
13 Preferred Playground Schematic Design - Ages 6-12
14 Preferred Playground Schematic Design – Swing Zone
Sand Play
Arch Swing Belt Seat Swing
Sway
Bench
Expression Swing
Elements of Play
15 Elements of
Play
B=l B=3
Balancing 7 1=5 9 12 1=8 15 24 4
A=l A=l
B=l B=l
Sliding 2 1=1 2 4 1=1 8 10 4
A=O A=2
B=O B=O
Brachiating 0 l=O 0 2 1=1 4 4 2
A=O A=l
B=l B=l
Spinning 2 1=1 19 2 1=1 19 38 2
A=O A=O
B=2 B=l
Climbing 4 1=1 8 11 1=6 53 61 9
A=l A=S
B=3 B=3
Swinging 4 1=1 9 8 1=3 13 22 2
A=O A=2
B=8
Sensory 8 1=0 21 21
A=O
TOTAL: 27 68+ 47 112 + 180 + 23 +
Free Play Free Play Free Play Free Play
Inclusive Play 30
Elements 14 B=S (including 30
1=6 ages 2-5
A=3 and 6-12
Level of play: B - Beginner; I - Intermediate; A - Advanced City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-652 Agenda Date: 5/24/2022

REPORT TO STADIUM AUTHORITY BOARD

SUBJECT
Action on Agreement with Keyser Marston Associates, Inc. for As Needed Fiscal and Economic Analysis Consulting Services

BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi’s Stadium

BACKGROUND
On October 8, 2019, the Stadium Authority Board (Board) approved Ordinance No. 2005 amending Chapter 17.30 of the City Code (Stadium Authority Procurement Policy), which rescinded the delegation to the Executive Director to enter into agreements without prior Board approval. As of the effective date of the Ordinance, November 8, 2019, all Stadium Authority agreements for services, supplies, materials, and equipment require the approval of the Stadium Authority Board.

The Executive Director is requesting approval for the following:
· Retroactive authorization to execute an agreement with Keyser Marston Associates, Inc. (Keyser Marston) in an amount not to exceed $25,000, subject to future budget appropriations, for as needed economic and fiscal analysis consulting services related to Levi’s Stadium. The proposed term of the agreement is from January 1, 2022 through March 31, 2025.

On March 15, 2022, the Board approved the Stadium Authority FY 2022/23 Operating, Debt Service and Capital Budget (Budget). The Stadium Authority FY 2022/23 General & Administrative Budget contains line items for Executive Director & Board Directives. This request totals a not to exceed amount of $25,000 and is a General & Administrative cost.

Keyser Marston has provided fiscal and economic analysis consulting services related to Levi’s Stadium since 2008. The firm’s prior work included assisting staff with negotiations related to the term sheet for the proposed stadium, Stadium Disposition and Development Agreement, Stadium Management Agreement, Stadium Builder Licenses, NFL Events, Naming Rights, and financing of the Stadium. The previous agreement expired on June 30, 2018. Staff on occasion requires ongoing fiscal assistance and expertise as well as historical knowledge from Keyser Marston; therefore, a new agreement is required for continued services.

DISCUSSION
Pursuant to Purchasing Code section 2.105.160(b)(5)(e), the recommended action does not require competitive bidding because this is a “continued service” where changing vendors would result in service disruptions due Keyser Marston’s past experience performing these services.

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22-652 Agenda Date: 5/24/2022
Staff recommends retroactive authorization to execute an agreement with Keyser Marston in an amount not to exceed $25,000. For full disclosure, Keyser Marston completed services for the Stadium Authority in January 2022, totaling $878 which will be paid under this this new agreement, leaving a balance of $24,122 which will be used for as-needed fiscal and economic analysis services related to Levi’s Stadium. There are sufficient funds in the Stadium Authority FY 2022/23 General & Administrative Budget, Executive Director & Board Directives to cover these costs.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines.

FISCAL IMPACT
There are sufficient funds in the Stadium Authority FY 2022/23 General & Administrative Budget to cover the costs of the Keyser Marston agreement (up to $25,000).

COORDINATION
This report has been coordinated with the City’s Purchasing Manager and Stadium Authority Counsel and Treasurer’s Offices.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]>.

RECOMMENDATION

1. Authorize the Executive Director to retroactively execute a three-year agreement ending on March 31, 2025 with Keyser Marston in an amount not to exceed $25,000 for as needed fiscal and economic analysis consulting services.

Prepared by: Christine Jung, Assistant to the Executive Director Approved by: Rajeev Batra, Executive Director

ATTACHMENTS

1. Agreement with Keyser Marston
City of Santa Clara Page 2 of 2 Printed on 5/19/2022
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Agreement with Keyser Marston Associates, Inc. Page 1
Rev. 07-01-18
EBIX Insurance No. S200004900

AGREEMENT FOR SERVICES

BETWEEN THE

SANTA CLARA STADIUM AUTHORITY
AND
KEYSER MARSTON ASSOCIATES, INC.

PREAMBLE
This Agreement is entered into between the Santa Clara Stadium Authority, a joint powers agency created pursuant to Section 6532 of the California Government Code (Authority) and Keyser Marston Associates, Inc., a California corporation, (Contractor).

Authority and Contractor may be referred to individually as a “Party” or collectively as the “Parties” or the “Parties to this Agreement.”

RECITALS
A. Authority desires to secure the services more fully described in this Agreement, at Exhibit A, entitled “Scope of Services”;
B. Contractor represents that it, and its subcontractors, if any, have the professional qualifications, expertise, necessary licenses and desire to provide certain goods and/or required services of the quality and type which meet objectives and requirements of Authority; and,
C. The Parties have specified herein the terms and conditions under which such services will be provided and paid for.

The Parties agree as follows:

AGREEMENT TERMS AND CONDITIONS

1. AGREEMENT DOCUMENTS
The documents forming the entire Agreement between Authority and Contractor shall consist of these Terms and Conditions and the following Exhibits, which are hereby incorporated into this Agreement by this reference:

Exhibit A – Scope of Services
Exhibit B – Schedule of Fees
Exhibit C – Insurance Requirements
Exhibit D – Labor Compliance Addendum (if applicable)
This Agreement, including the Exhibits set forth above, contains all the agreements, representations and understandings of the Parties, and supersedes Agreement with Keyser Marston Associates, Inc. Page 2
Rev. 07-01-18
and replaces any previous agreements, representations and understandings, whether oral or written. In the event of any inconsistency between the provisions of any of the Exhibits and the Terms and Conditions, the Terms and Conditions shall govern and control.

2. TERM OF AGREEMENT
Unless otherwise set forth in this Agreement or unless this paragraph is subsequently modified by a written amendment to this Agreement, the term of this Agreement shall begin on January 1, 2022 and terminate on March 31, 2025.

3. SCOPE OF SERVICES & PERFORMANCE SCHEDULE
Contractor shall perform those Services specified in Exhibit A within the time stated in Exhibit A. Time is of the essence.

4. WARRANTY
Contractor expressly warrants that all materials and services covered by this Agreement shall be fit for the purpose intended, shall be free from defect and shall conform to the specifications, requirements and instructions upon which this Agreement is based. Contractor agrees to promptly replace or correct any incomplete, inaccurate or defective Services at no further cost to Authority when defects are due to the negligence, errors or omissions of Contractor. If Contractor fails to promptly correct or replace materials or services, Authority may make corrections or replace materials or services and charge Contractor for the cost incurred by Authority.

5. QUALIFICATIONS OF CONTRACTOR - STANDARD OF CARE
Contractor represents and maintains that it has the expertise in the professional calling necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and Authority expressly relies upon Contractor’s representations regarding its skills and knowledge. Contractor shall perform such Services and duties in conformance to and consistent with the professional standards of a specialist in the same discipline in the State of California.

6. COMPENSATION AND PAYMENT
In consideration for Contractor’s complete performance of Services, Authority shall pay Contractor for all materials provided and Services rendered by Contractor in accordance with Exhibit B, entitled “SCHEDULE OF FEES.” The maximum compensation of this Agreement is twenty-five thousand dollars ($25,000), subject to budget appropriations, which includes all payments that may be authorized for Services and for expenses, supplies, materials and equipment required to perform the Services. All work performed or materials provided in excess of the maximum compensation shall be at Contractor’s Agreement with Keyser Marston Associates, Inc. Page 3
Rev. 07-01-18
expense. Contractor shall not be entitled to any payment above the maximum compensation under any circumstance.

7. TERMINATION
A. Termination for Convenience. Authority shall have the right to terminate this Agreement, without cause or penalty, by giving not less than Thirty (30) days’ prior written notice to Contractor.

B. Termination for Default. If Contractor fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, Authority may terminate this Agreement immediately upon written notice to Contractor.

C. Upon termination, each Party shall assist the other in arranging an orderly transfer and close-out of services. As soon as possible following the notice of termination, but no later than ten (10) days after the notice of termination, Contractor will deliver to Authority all Authority information or material that Contractor has in its possession.

8. ASSIGNMENT AND SUBCONTRACTING
Authority and Contractor bind themselves, their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written approval of Authority. Contractor shall not hire subcontractors without express written permission from Authority.

Contractor shall be as fully responsible to Authority for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons directly employed by it.

9. NO THIRD PARTY BENEFICIARY
This Agreement shall not be construed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action under this Agreement for any cause whatsoever.

10. INDEPENDENT CONTRACTOR
Contractor and all person(s) employed by or contracted with Contractor to furnish labor and/or materials under this Agreement are independent contractors and do not act as agent(s) or employee(s) of Authority. Contractor has full rights to manage its employees in their performance of Services under this Agreement.

11. CONFIDENTIALITY OF MATERIAL
All ideas, memoranda, specifications, plans, manufacturing procedures, data, drawings, descriptions, documents, discussions or other information developed Agreement with Keyser Marston Associates, Inc. Page 4
Rev. 07-01-18
or received by or for Contractor and all other written information submitted to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor and shall not, without the prior written consent of Authority, be used for any purposes other than the performance of the Services nor be disclosed to an entity not connected with performance of the Services.

Nothing furnished to Contractor which is otherwise known to Contractor or becomes generally known to the related industry shall be deemed confidential.

12. OWNERSHIP OF MATERIAL
All material, which shall include, but not be limited to, data, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports, designs, technology, programming, works of authorship and other material developed, collected, prepared or caused to be prepared under this Agreement with the exception of Contractor’s proprietary computer models, shall be the property of Authority but Contractor may retain and use copies thereof. Authority shall not be limited in any way or at any time in its use of said material. However, Contractor shall not be responsible for damages resulting from the use of said material for work other than Project, including, but not limited to, the release of this material to third parties.

13. RIGHT OF AUTHORITY TO INSPECT RECORDS OF CONTRACTOR Authority, through its authorized employees, representatives or agents shall have the right during the term of this Agreement and for four (4) years from the date of final payment for goods or services provided under this Agreement, to audit the books and records of Contractor for the purpose of verifying any and all charges made by Contractor in connection with Contractor compensation under this Agreement, including termination of Contractor. Contractor agrees to maintain sufficient books and records in accordance with generally accepted accounting principles to establish the correctness of all charges submitted to Authority. Any expenses not so recorded shall be disallowed by Authority. Contractor shall bear the cost of the audit if the audit determines that there has been a substantial billing deviation in excess of five (5) percent adverse to the Authority.

Contractor shall submit to Authority any and all reports concerning its performance under this Agreement that may be requested by Authority in writing.

Contractor agrees to assist Authority in meeting Authority’s reporting requirements to the State and other agencies with respect to Contractor’s Services hereunder.

14. HOLD HARMLESS/INDEMNIFICATION
A. To the extent permitted by law, Contractor agrees to protect, defend, hold harmless and indemnify Authority, its respective boards, commissions, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including all costs Agreement with Keyser Marston Associates, Inc. Page 5
Rev. 07-01-18
and attorney’s fees in providing a defense to any such claim or other action, and whether sounding in law, contract, tort, or equity, in any manner arising from, or alleged to arise in whole or in part from, or in any way connected with Contractor’s alleged negligence or willful misconduct in the Services performed by Contractor pursuant to this Agreement – including claims of any kind by Contractor’s employees or persons contracting with Contractor to perform any portion of the Scope of Services – and shall expressly include passive or active negligence by Authority connected with the Services. However, the obligation to indemnify shall not apply if such liability is ultimately adjudicated to have arisen through the sole active negligence or sole willful misconduct of Authority; the obligation to defend is not similarly limited.

B. Contractor’s obligation to protect, defend, indemnify, and hold harmless in full Authority and Authority’s employees, shall specifically extend to any and all employment-related claims of any type brought by employees, contractors, subcontractors or other agents of Contractor, against Authority (either alone, or jointly with Contractor), regardless of venue/jurisdiction in which the claim is brought and the manner of relief sought.

C. To the extent Contractor is obligated to provide health insurance coverage to its employees pursuant to the Affordable Care Act (“Act”) and/or any other similar federal or state law, Contractor warrants that it is meeting its obligations under the Act and will fully indemnify and hold harmless Authority for any penalties, fines, adverse rulings, or tax payments associated with Contractor’s responsibilities under the Act.

15. INSURANCE REQUIREMENTS
During the term of this Agreement, and for any time period set forth in Exhibit C, Contractor shall provide and maintain in full force and effect, at no cost to Authority, insurance policies as set forth in Exhibit C.

16. WAIVER
Contractor agrees that waiver by Authority of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement. Neither Authority’s review, acceptance nor payments for any of the Services required under this Agreement shall be constructed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement.

Agreement with Keyser Marston Associates, Inc. Page 6
Rev. 07-01-18

17. NOTICES
All notices to the Parties shall, unless otherwise requested in writing, be sent to Authority addressed as follows:

Santa Clara Stadium Authority
Attention: Executive Director’s Office
1500 Warburton Avenue
Santa Clara, CA 95050
and by e-mail at [email protected] and [email protected]
And to Contractor addressed as follows:

Keyser Marston Associates, Inc.
2040 Bancroft Way, Suite 302
Berkeley CA 94704
The workday the e-mail was sent shall control the date notice was deemed given.

An e-mail transmitted after 1:00 p.m. on a Friday shall be deemed to have been transmitted on the following business day.

18. COMPLIANCE WITH LAWS
Contractor shall comply with all applicable laws and regulations of the federal, state and local government, including but not limited to “The Code of the City of Santa Clara, California” (“SCCC”). In particular, Contractor’s attention is called to the regulations regarding Campaign Contributions (SCCC Chapter 2.130), Lobbying (SCCC Chapter 2.155), Minimum Wage (SCCC Chapter 3.20), Business Tax Certificate (SCCC Section 3.40.060), and Food and Beverage Service Worker Retention (SCCC Chapter 9.60), as such Chapters or Sections may be amended from time to time or renumbered. Additionally Contractor has read and agrees to comply with Authority’s Ethical Standards (http://santaclaraca.gov/home/showdocument?id=58299).

19. CONFLICTS OF INTEREST
Contractor certifies that to the best of its knowledge, no Authority officer, employee or authorized representative has any financial interest in the business of Contractor and that no person associated with Contractor has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. Contractor is familiar with the provisions of California Government Code section 87100 and following, and certifies that it does not know of any facts Agreement with Keyser Marston Associates, Inc. Page 7
Rev. 07-01-18
which would violate these code provisions. Contractor will advise Authority if a conflict arises.

20. FAIR EMPLOYMENT
Contractor shall not discriminate against any employee or applicant for employment because of race, sex, color, religion, religious creed, national origin, ancestry, age, gender, marital status, physical disability, mental disability, medical condition, genetic information, sexual orientation, gender expression, gender identity, military and veteran status, or ethnic background, in violation of federal, state or local law.

21. NO USE OF AUTHORITY NAME OR EMBLEM
Contractor shall not use Stadium’s name, insignia, or emblem, or distribute any information related to services under this Agreement in any magazine, trade paper, newspaper or other medium without express written consent of Authority.

22. GOVERNING LAW AND VENUE
This Agreement shall be governed and construed in accordance with the statutes and laws of the State of California. The venue of any suit filed by either Party shall be vested in the state courts of the County of Santa Clara, or if appropriate, in the United States District Court, Northern District of California, San Jose, California.

23. SEVERABILITY CLAUSE
In case any one or more of the provisions in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, it shall not affect the validity of the other provisions, which shall remain in full force and effect.

24. AMENDMENTS
This Agreement may only be modified by a written amendment duly authorized and executed by the Parties to this Agreement.

Agreement with Keyser Marston Associates, Inc. Page 8
Rev. 07-01-18

25. COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but both of which shall constitute one and the same instrument.

The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives.

SANTA CLARA STADIUM AUTHORITY, CALIFORNIA
a California Joint Powers Authority
Approved as to Form: Dated:

Interim Stadium Authority Counsel Executive Director
1500 Warburton Avenue
Santa Clara, CA 95050
Telephone: (408) 615-2210
Fax: (408) 241-6771 “AUTHORITY”
KEYSER MARSTON ASSOCIATES, INC.
a California corporation
Dated:

By (Signature):

Name: David Doezema
Title: Senior Principal
Principal Place of
Business Address:
2040 Bancroft Way, Suite 302
Berkeley CA 94704
Email Address: [email protected]
Telephone: (415) 398-3050
Fax: ( )
“CONTRACTOR”
Agreement with Keyser Marston Associates, Inc./Exhibit A-Scope of Services Page 1 Rev. 07-01-18

EXHIBIT A

SCOPE OF SERVICES
Contractor shall provide as needed fiscal and economic analysis to the Stadium Authority related to Levi’s Stadium.

Agreement with Keyser Marston Associates, Inc./Exhibit B-Schedule of Fees Page 1 Rev. 07-01-18

EXHIBIT B

SCHEDULE OF FEES
The maximum compensation the Authority will pay the Contractor for all professional fees, costs, and expenses provided under this Agreement shall not exceed twenty-five thousand dollars ($25,000) during the term of the Agreement. Contractor will bill Authority on a monthly basis for Services provided by Contractor during the preceding month on an invoice and in a format approved by Authority and subject to verification and approval by Authority. Authority will pay Contractor within thirty (30) days of Authority’s receipt of an approved invoice.

KEYSER MARSTON ASSOCIATES, INC.

PUBLIC SECTOR HOURLY RATES
CHAIRMAN, PRESIDENT, MANAGING PRINCIPALS*
SENIOR PRINCIPALS*
PRINCIPALS*
MANAGERS*

SENIOR ASSOCIATES

ASSOCIATES

SENIOR ANALYSTS

ANALYSTS

TECHNICAL STAFF

ADMINISTRATIVE STAFF
2021/2022
$290.00
$280.00
$260.00
$235.00
$195.00
$175.00
$160.00
$140.00
$100.00
$85.00
Directly related job expenses not included in the above rates are: auto mileage, parking, air fares, hotels and motels, meals, car rentals, taxies, telephone calls, delivery, electronic data processing, graphics and printing. Directly related job expenses will be billed at 110% of cost Monthly billings for staff time and expenses incurred during the period will be payable within thirty (30) days of invoice date.
• Rates for individuals in these categories will be increased by 50% for time spent in court testimony.

Agreement with Keyser Marston Associates, Inc. /Exhibit D-Labor Compliance Page 1 Rev. 07-01-18

EXHIBIT C

INSURANCE REQUIREMENTS
Without limiting the Contractor’s indemnification of the Authority, and prior to commencing any of the Services required under this Agreement, the Contractor shall provide and maintain in full force and effect, at its sole cost and expense, the following insurance policies with at least the indicated coverages, provisions and endorsements:

A. COMMERCIAL GENERAL LIABILITY INSURANCE

1. Commercial General Liability Insurance policy which provides coverage at least as broad as Insurance Services Office form CG 00 01. Policy limits are subject to review, but shall in no event be less than, the following:
$1,000,000 each occurrence
$1,000,000 general aggregate
$1,000,000 products/completed operations aggregate
$1,000,000 personal injury

2. Exact structure and layering of the coverage shall be left to the discretion of Contractor; however, any excess or umbrella policies used to meet the required limits shall be at least as broad as the underlying coverage and shall otherwise follow form.

3. The following provisions shall apply to the Commercial Liability policy as well as any umbrella policy maintained by the Contractor to comply with the insurance requirements of this Agreement:
a. Coverage shall be on a “pay on behalf” basis with defense costs payable in addition to policy limits;
b. There shall be no cross liability exclusion which precludes coverage for claims or suits by one insured against another; and c. Coverage shall apply separately to each insured against whom a claim is made or a suit is brought, except with respect to the limits of liability.

B. BUSINESS AUTOMOBILE LIABILITY INSURANCE
Business automobile liability insurance policy which provides coverage at least as broad as ISO form CA 00 01, with minimum policy limits of not less than one million dollars ($1,000,000) each accident using, or providing coverage at least as broad as, Insurance Services Office form CA 00 01. Liability coverage shall apply to all owned, non-owned and hired autos.

Agreement with Keyser Marston Associates, Inc. /Exhibit D-Labor Compliance Page 2 Rev. 07-01-18
C. WORKERS’ COMPENSATION

1. Workers’ Compensation Insurance Policy as required by statute and employer’s liability with the following limits: at least one million dollars ($1,000,000) policy limit Illness/Injury by disease, and one million dollars ($1,000,000) for each Accident/Bodily Injury.

2. The indemnification and hold harmless obligations of Contractor included in this Agreement shall not be limited in any way by any limitation on the amount or type of damage, compensation or benefit payable by or for Contractor or any subcontractor under any Workers’ Compensation Act(s), Disability Benefits Act(s) or other employee benefits act(s).

3. This policy must include a Waiver of Subrogation in favor of the Santa Clara Stadium Authority, its government board, subordinate boards, commissions, officers, employees, volunteers and agents.

D. COMPLIANCE WITH REQUIREMENTS
All of the following clauses and/or endorsements, or similar provisions, must be part of each commercial general liability policy, and each umbrella or excess policy.

1. Additional Insureds. The Santa Clara Stadium Authority, its governing board, subordinate board, commissions, officers, employees, volunteers and agents are hereby added as additional insureds in respect to liability arising out of Contractor’s work for Authority, using Insurance Services Office (ISO) Endorsement CG 20 10 11 85 or the combination of CG 20 10 03 97 and CG 20 37 10 01, or its equivalent.

2. Primary and non-contributing. Each insurance policy provided by Contractor shall contain language or be endorsed to contain wording making it primary insurance as respects to, and not requiring contribution from, any other insurance which the indemnities may possess, including any self-insurance or self-insured retention they may have. Any other insurance indemnities may possess shall be considered excess insurance only and shall not be called upon to contribute with Contractor’s insurance.

3. Cancellation.
a. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided due to non-payment of premiums shall be effective until written notice has been given to Authority at least ten (10) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least ten (10) days prior to the effective date of non-renewal.

Agreement with Keyser Marston Associates, Inc. /Exhibit D-Labor Compliance Page 3 Rev. 07-01-18
b. Each insurance policy shall contain language or be endorsed to reflect that no cancellation or modification of the coverage provided for any cause save and except non-payment of premiums shall be effective until written notice has been given to Authority at least thirty (30) days prior to the effective date of such modification or cancellation. In the event of non-renewal, written notice shall be given at least thirty (30) days prior to the effective date of nonrenewal.

4. Other Endorsements. Other endorsements may be required for policies other than the commercial general liability policy if specified in the description of required insurance set forth in Sections A through D of this Exhibit C, above.

E. ADDITIONAL INSURANCE RELATED PROVISIONS
Contractor and Authority agree as follows:

1. Contractor agrees to ensure that subcontractors, and any other party involved with the Services, who is brought onto or involved in the performance of the Services by Contractor, provide the same minimum insurance coverage required of Contractor, except as with respect to limits. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Agreement. Contractor agrees that upon request by Authority, all agreements with, and insurance compliance documents provided by, such subcontractors and others engaged in the project will be submitted to Authority for review.

2. Contractor agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge Authority or Contractor for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to Authority. It is not the intent of Authority to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against Authority for payment of premiums or other amounts with respect thereto.

3. The Authority reserves the right to withhold payments from the Contractor in the event of material noncompliance with the insurance requirements set forth in this Agreement.

F. EVIDENCE OF COVERAGE
Prior to commencement of any Services under this Agreement, Contractor, and each and every subcontractor (of every tier) shall, at its sole cost and expense, provide and maintain not less than the minimum insurance coverage with the endorsements and deductibles indicated in this Agreement. Such insurance Agreement with Keyser Marston Associates, Inc. /Exhibit D-Labor Compliance Page 4 Rev. 07-01-18
coverage shall be maintained with insurers, and under forms of policies, satisfactory to Authority and as described in this Agreement. Contractor shall file with the Authority all certificates and endorsements for the required insurance policies for Authority’s approval as to adequacy of the insurance protection.

G. EVIDENCE OF COMPLIANCE
Contractor or its insurance broker shall provide the required proof of insurance compliance, consisting of Insurance Services Office (ISO) endorsement forms or their equivalent and the ACORD form 25-S certificate of insurance (or its equivalent), evidencing all required coverage shall be delivered to Authority, or its representative as set forth below, at or prior to execution of this Agreement.

Upon Authority’s request, Contractor shall submit to Authority copies of the actual insurance policies or renewals or replacements. Unless otherwise required by the terms of this Agreement, all certificates, endorsements, coverage verifications and other items required to be delivered to Authority pursuant to this Agreement shall be mailed to:

EBIX Inc.

Santa Clara Stadium Authority [Executive Director’s Office] P.O. Box 100085 – S2 or 1 Ebix Way
Duluth, GA 30096 John’s Creek, GA 30097
Telephone number: 951-766-2280
Fax number: 770-325-0409
Email address: [email protected]
H. QUALIFYING INSURERS
All of the insurance companies providing insurance for Contractor shall have, and provide written proof of, an A. M. Best rating of at least A minus 6 (A- VI) or shall be an insurance company of equal financial stability that is approved by the Authority or its insurance compliance representative
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-1725 Agenda Date: 5/24/2022

REPORT TO COUNCIL

SUBJECT
Public Hearing: Adoption of a Resolution Setting Rates for Overall Solid Waste Services and Annual Clean-up Campaign in the Exclusive Franchise Area

COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure; Promote Sustainability and Environmental Protection

EXECUTIVE SUMMARY
The City has agreements with outside contractors for the collection and processing of garbage and recyclables. In 2021 a Solid Waste Rate Study was completed by R3 Consulting, Inc. (R3) that developed a model to calculate equitable solid waste rates based on current contractor costs, subscription levels, and disposal data. The model has been updated with FY 2022/23 cost data to calculate solid waste rates for FY 2022/23, which will enable the program to achieve cost recovery.

These rates are within the projected increases communicated to the public and Council when the Council directed staff to finalize the current solid waste agreements. The solid waste rates for FY 2022/23 are contained in Table A of the Resolution (Attachment 1).

Notices (Attachment 2) were sent to all 34,973 solid waste rate payers on April 7, 2022, informing them of the proposed rate increases and date of the Public Hearing to approve the rates, as required by Article XIII D of the California Constitution. Following the close of the Public Hearing, staff recommends that Council adopt the subject Resolution, which establishes the solid waste rates effective for the utility bills issued for services rendered on and after July 1, 2022.

BACKGROUND
In November 1996, California voters approved Proposition 218, which amended the state Constitution and imposed new substantive and procedural requirements for imposing or increasing property-related fees and charges. Under these requirements, water, sewer, and solid waste service fees or charges may only be increased if a majority of rate payers do not protest the increase. The City must mail a written notice of the proposed increases and hold a public hearing on the proposed increase not less than 45 days after mailing the notice. At the public hearing, all protests against the proposed fees or charges are tabulated and if the number of protests from rate payers equals or exceeds 50 percent plus one, the fees or charges cannot be imposed. The public hearing for the City’s FY 2022/23 solid waste rates is scheduled for May 24, 2022. If there is not a majority protest, the Council can adopt the proposed rate increases contained in Table A of the Resolution (Attachment 1).

The City sets rates and collects bundled charges from customers to fund the solid waste program in the exclusive franchise area which is comprised of all properties not zoned for an Industrial use.

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Customers are only charged for the specific components for which they receive service. The bundled solid waste rate is comprised of one or more of the following components. · Garbage
· Yard trimmings
· Residential recycling
· Annual Clean-up Campaign (CUC)
In 2019, City Council approved moving forward with 15-year solid waste agreements with Recology South Bay (Recology), Mission Trail Waste Systems (MTWS), and GreenWaste Recovery, Inc. (GWR). An existing agreement with Republic Services/BFI (Republic) for landfill disposal and composting of yard trimmings is in place and expires on December 31, 2024. The services provided under these agreements enable the City to comply with the new organic waste collection program and diversion requirements for the purpose of reducing greenhouse gas emissions from landfills mandated by Senate Bill 1383 (SB 1383).

Following the execution of the current solid waste agreements, a Solid Waste Rate Study (Rate Study) was completed to ensure that the FY 2021/22 rates were based on the true costs of service and were equitable. Each rate for garbage, yard trimmings, residential recycling, and CUC service was developed to equitably incorporate the following cost elements:
· Compensation paid to service providers to collect and transport solid waste · Compensation paid to process, compost, and/or dispose of solid waste · City program costs (billing and internal costs, street sweeping, household hazardous waste, leaf vacuum, and holiday tree collection services, franchise fees, landfill post closure costs, and SB 1383 compliance costs)
The same methodology used to prepare the Rate Study was utilized to develop the proposed solid waste rates that will meet the projected costs of the City’s solid waste services for FY 2022/23. The subsequent discussion summarizes upcoming changes to the various cost elements and associated impacts on the proposed FY 2022/23 rates.

DISCUSSION
Cost Adjustments Required by the Agreements with Recology, Mission Trail Waste Systems (MTWS), GreenWaste Recovery (GWR), and Republic Services/BFI (Republic) The primary reason for rate increases is to raise additional revenue to cover the FY 2022/23 compensation adjustments paid to service providers for the collection, processing, recycling, composting, and disposal of solid waste in compliance with state laws and current market conditions, as required by the agreements.

The agreements with Recology and MTWS contain Council approved negotiated compensation increases spread over the initial years to gradually incorporate the increased costs due to the labor market, recycle market, and the cost for the contractor to procure new collection vehicles. The agreements with GWR and Republic specify annual cost of living adjustments based on annual over changes to the price indices. Below are summaries of the compensation adjustments previously approved by Council for the solid waste agreements that are effective July 1, 2022. · Recology: +13.8%
· MTWS: +9.0%
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22-1725 Agenda Date: 5/24/2022
· GWR: +4.24%
· Republic: +3.1%
Increases due to SB 1383 Compliance Requirements
SB 1383 requires the City to annually procure specified amounts of electricity, compost and/or mulch derived from recycled organics and implement an edible food recovery program. Approximately 1 percent of the increase to each garbage cart and bin component of the bundled rates is attributable to funding the SB 1383 recycled organics procurement and edible food recovery requirements Bundled Solid Waste Rates
The individual garbage, yard trimmings, recycling and CUC components are bundled together to create the overall solid waste rates that are charged to residential cart customers. The rates for each service are based on the cost to provide collection, disposal, processing and/or composting, and City program costs. The table below summarizes the individual rate component increases for residential cart customers.

Service Type FY 2021/22 Rate FY 2022/23 Rate Change in Rate 20-gallon garbage cart $17.37 $18.65 $1.28
32-gallon garbage cart $24.15 $25.95 $1.80
64-gallon garbage cart $44.91 $48.38 $3.47
96-gallon garbage cart $65.59 $70.67 $5.08
Yard trimmings $13.04 $13.56 $0.52
Recycling $5.58 $6.67 $1.09
CUC $6.28 $6.28 $0.00
Each customer pays a rate that is dependent on cart size subscription and whether they pay for yard trimmings or CUC services. Below is a summary of FY 2022/23 bundled monthly rates for singlefamily residential and townhouse cart customers that will enable to the City to achieve cost recovery for the solid waste services it provides to its residents. Townhouse residential cart customers rates are the FY 2022/23 bundled rate for garbage cart size less the $13.56 yard trimmings rate since they do not receive this service. Monthly rates for cart customers that do not participate in the CUC are $6.28 less than the bundled rates shown in the table.

Garbage Cart Size Garbage Rate Yard
Trimmings
Rate
Recycling
Rate
CUC Rate FY 22/23
Bundled
20-gallon singlefamily$18.65 $13.56 $6.67 $6.28 $45.16 20-gallon townhouse $18.65 $0.00 $6.67 $6.28 $31.60
32-gallon singlefamily$25.95 $13.56 $6.67 $6.28 $52.46 32-gallon townhouse $25.95 $0.00 $6.67 $6.28 $38.90
64-gallon singlefamily$48.38 $13.56 $6.67 $6.28 $74.89 64-gallon townhouse $48.38 $0.00 $6.67 $6.28 $61.33
96-gallon singlefamily$70.67 $13.56 $6.67 $6.28 $97.18 96-gallon townhouse $70.67 $0.00 $6.67 $6.28 $83.62
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22-1725 Agenda Date: 5/24/2022
32-gallon singlefamily$25.95 $13.56 $6.67 $6.28 $52.46 32-gallon townhouse $25.95 $0.00 $6.67 $6.28 $38.90
64-gallon singlefamily$48.38 $13.56 $6.67 $6.28 $74.89 64-gallon townhouse $48.38 $0.00 $6.67 $6.28 $61.33
96-gallon singlefamily$70.67 $13.56 $6.67 $6.28 $97.18 96-gallon townhouse $70.67 $0.00 $6.67 $6.28 $83.62
The table below shows the increase in each residential cart bundled rate.

Garbage Cart Size FY 21/22
Bundled Rate
FY 22/23
Bundled Rate
Change in
Rate
Percentage
Change
20-gallon single-family $42.27 $45.16 $2.89 6.8%
20-gallon townhouse $29.23 $31.60 $2.37 8.1%
32-gallon single-family $49.05 $52.46 $3.41 7.0%
32-gallon townhouse $36.01 $38.90 $2.89 8.0%
64-gallon single-family $69.81 $74.89 $5.08 7.3%
64-gallon townhouse $56.77 $61.33 $4.56 8.0%
96-gallon single-family $90.49 $97.18 $6.69 7.4%
96-gallon townhouse $77.45 $83.62 $6.17 8.0%
Garbage Bin Rates
Garbage bin rates include the costs for collection, processing, disposal, and City program costs. Bin charges will be increasing between 1.5 percent to 3.7 percent in FY 2022/23, depending on service level. The loose garbage bin rates are shown in Section II.D of Attachment 1.

New Compacted Garbage Bin Rates
In an effort to minimize the amount of space needed for solid waste storage, some newer developments are designing solid waste enclosures to utilize equipment that compacts garbage prior to it being placed in a bin for disposal. The compaction of the garbage reduces the volume by approximately three times so the weight of the garbage in the bin increases. The disposal component of the bin rates was developed based on the weights of uncompacted garbage. Staff is proposing new rates for compacted bins which range from 57 percent to 77 percent more expensive than rates for the same container filled with loose garbage. The FY 2022/23 compacted garbage bin rates are shown in Section II.E of Attachment 1.

Services Billed by MTWS
The City sets the rates and bills for residential and commercial cart and bin garbage service. Under the current agreement, MTWS bills customers directly for commercial business recycling and voluntary commercial organics collection, and loose and compacted roll-off debris bin collection services that it provides. The methodology for determining the rates that MTWS charges customers for the services that it provides is prescribed in the exclusive franchise agreement. The City needs to notice the rate increases in accordance with Proposition 218 requirements and approve the rates at the Public Hearing for the rate increases to take effect. If the proposed rate increases for services that are billed by MTWS are not approved by the City Council, the City is contractually obligated to pay MTWS the increased compensation and has to absorb the shortfall between cost of service and revenue collected.

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Commercial Recycling
MTWS is required to provide up to 96-gallons of commercial recycling services to businesses at no separate charge to the City under the agreement. The rates for additional service above 96-gallons per week are based on container size and frequency of service, plus a 10 percent markup for billing and franchise fees. Commercial recycling service rates charged to cart and bin customers will increase by 9 percent in FY 2022/23 (Sections II.B and II.F of Attachment 1).

MTWS remits 5 percent of the amount collected from customers to the City as franchise fees that get deposited in the General Fund for all services that it provides billing for, which includes the services described below.

Voluntary Food Scraps and Organic Waste Service
MTWS provides voluntary source separated food scraps and organic waste service to commercial business customers under the agreement. The rates for collection and processing are based on container size and frequency of service, plus a 10 percent markup for billing and franchise fees.

Collection and processing rates charged to customers with cart and bin source separated food scrap and organic waste service will be increasing by 9 percent in FY 2022/23 (Section II.C and Section II.G of Attachment 1).

Loose and Compacted Roll-Off Debris Bin Service
MTWS provides scheduling, collection, and billing for loose and compacted roll-off debris box service in the exclusive franchise area. The collection rate component is based on container size and frequency of service, plus a 10 percent markup for billing and franchise fees. MTWS will be receiving a 9 percent increase to its tariffs in FY 2022/23. Customers are also billed the actual charges incurred for the disposal, processing, and/or recycling of collected contents plus 10 percent markup for billing and franchise fees. Section II.H of Attachment 1 contains rates for these services.

Countywide Rate Comparison
The Santa Clara County Residential Cart Rate Comparison (Attachment 3) provides a comparison of solid waste rates for residential collection services in Santa Clara County (County). Most jurisdictions have indicated they will also be seeking rate increases in FY 2022/23 but were unable to share that information at this time. As a result, the comparison is based on comparing Santa Clara’s proposed FY 2022/23 rates to the current FY 2021/22 rates in other jurisdictions. The survey is for bundled solid waste services that include garbage, yard trimmings, and recycling services.

Santa Clara is the only city in the county that offers a townhouse service rate in which customers do not subscribe to yard trimmings service. The townhouse rates are lower than countywide averages for the same size container across the board. It should also be noted that the City’s rates that are presented for comparison do not include the proposed $6.28 per month charge for the CUC because no other jurisdiction in the County has a comparable program. The table below summarizes the City’s single-family and townhouse rates compared to the countywide averages. 20-gallon 32-gallon 64-gallon 96-gallon
FY 2021/22
countywide
average
$32.92 $40.65 $70.09 $103.70
FY 2022/23
Santa Clara
single-family rate*
$38.88 $46.18 $68.61 $90.90
FY2022/23
Santa Clara
$25.32 $32.62 $55.05 $77.34
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20-gallon 32-gallon 64-gallon 96-gallon
FY 2021/22
countywide
average
$32.92 $40.65 $70.09 $103.70
FY 2022/23
Santa Clara
single-family rate*
$38.88 $46.18 $68.61 $90.90
FY2022/23
Santa Clara
townhouse rate*
**
$25.32 $32.62 $55.05 $77.34
*Excludes CSC Clean-up Campaign Cost
**No other city offers reduced townhouse rates
The Santa Clara County Commercial Bin Rate Comparison (Attachment 4) provides a comparison of solid waste rates for commercial bin collection services in the County. Most jurisdictions in the County have indicated that rate increases will be occurring in FY 2022/23. Santa Clara multi-family and commercial business customers that subscribe to frontload bin garbage service will not be required to subscribe to an additional organics container to meet SB 1383 requirements because the contents of the garbage bins will be taken to the GWR mixed waste processing facility to recover the organics for composting. This is not the case for some other jurisdictions. The cost savings of not subscribing to an additional container for organics is not captured in the countywide comparison, which only shows the cost to subscribe to a specific garbage service level.

Rate Assistance Program
Under the current agreement, MTWS provides the City with a $3 per month decrease in tariff for residential accounts that qualify through the Silicon Valley Power (SVP) low income Rate Assistance Program. On March 10, 2021 the City Council approved to increase the rate discount to $10 per month. MTWS will continue to fund $3 per month and a transfer from the General Fund in the amount of $35,364 will be necessary to fund the additional $7 per month for 421 qualifying customers in order to comply with Proposition 218 in FY 2022/23.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of California Environmental Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has not potential for resulting in either a direct change in the environment, or as a reasonably foreseeable indirect physical change in the environment.

FISCAL IMPACT
In total, with the rate increases the solid waste customer charges will generate approximately $36,627,092 of revenue in FY 2022/23. These revenues have been incorporated into the Solid Waste Fund operating budget in the Proposed FY 2022/23 and FY 2023/24 Biennial Capital Improvement Program Budget. A transfer from the General Fund to the Solid Waste Fund in the amount of $35,364 has also been programmed to fund the additional $7 per month for 421 qualifying customers in the Rate Assistance Program for FY 2022/23.

COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.

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22-1725 Agenda Date: 5/24/2022

PUBLIC CONTACT
On April 7, 2022 notices were mailed to 34,973 solid waste customers, which provided information on the proposed FY 2022/23 rate increases, instructions on how to protest the rate increases, and details on how to access the public hearing. Additionally, public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]>.

ALTERNATIVES

1. Adopt a Resolution setting the overall rates to be charged to rate payers for the collection and disposal of garbage, refuse, yard trimmings, recycling, annual Clean-up Campaign, and Household Hazardous Waste in the exclusive franchise area, effective for the utility bills issued for services rendered on and after July 1, 2022; or

2. Do not adopt a Resolution to increase the proposed rates to be charged to rate payers for collection and disposal of garbage, refuse, yard trimmings, recycling, annual Clean-up Campaign, and Household Hazardous Waste in the exclusive franchise area and subsidize FY 2022/23 expenditures with funds from the General Fund.

RECOMMENDATION
Alternative 1: Adopt a Resolution setting the overall rates to be charged to rate payers for the collection and disposal of garbage, refuse, yard trimmings, recycling, annual Clean-up Campaign, and Household Hazardous Waste in the exclusive franchise area, effective for the utility bills issued for services rendered on and after July 1, 2022.

Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Rajeev Batra, City Manager

ATTACHMENTS

1. Resolution

2. Notice

3. Santa Clara County Residential Cart Rate Comparison

4. Santa Clara County Commercial Bin Rate Comparison
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Resolution/Solid Waste Rates Page 1 of 13
Rev: 11/22/17
RESOLUTION NO. _____

A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA

SETTING RATES FOR OVERALL SOLID WASTE SERVICES AND

ANNUAL CLEANUP CAMPAIGN SERVICES IN THE EXCLUSIVE

FRANCHISE AREA
BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:

WHEREAS, the City Council of the City of Santa Clara (“City”) has provided, by contract or with its own forces, certain garbage collection and disposal services, yard trimming and recycling collection, and the Annual Cleanup Campaign (“Solid Waste Services”) within the corporate limits of the City of Santa Clara;
WHEREAS, City entered into an agreement entitled the “Agreement for Disposal of Municipal Solid Waste, dated March 7, 1989, with International Disposal Corporation of California (a wholly owned subsidiary of Browning Ferris Industries (BFI))”, (“Disposal Agreement”) as amended by Amendment No. 1 dated February 10, 1998, for cost of disposing of garbage and refuse collected in the City at Newby Island Landfill for a term commencing March 7, 1989, and terminating on December 31, 2024 (BFI’s successor in interest is “Republic Services”); WHEREAS, City entered into an agreement entitled “Agreement for Services Between the City of Santa Clara, California and GreenWaste Recovery, Inc.” (“Solid Waste Processing Agreement”), dated April 27, 2020, to process solid waste from the exclusive franchise area to recover recyclables and organic waste for a term commencing July 1, 2020, and terminating on June 30, 2036;
WHEREAS, City entered into an agreement entitled “Agreement for Services Between the City of Santa Clara, California and Mission Trail Waste Systems, Inc.” (“Refuse Franchise Agreement”), April 27, 2020, to collect and transport solid waste from customers in the exclusive franchise area, excluding residential recyclables for a term commencing July 1, 2020, and terminating on June 30, 2036;
WHEREAS, City entered into an agreement entitled “Agreement for Services Between the City Resolution/Solid Waste Rates Page 2 of 13
Rev: 11/22/17
of Santa Clara, California, and Recology South Bay DBA Recology Santa Clara” (“Residential Recycling Services Agreement”), February 5, 2020, for residential recycling collection services for a term commencing July 1, 2020, and terminating on June 30, 2036; WHEREAS, the overall adjustments to the monthly rates charged to customers for Solid Waste Services made by this Resolution do not in any way modify the rates of compensation which Mission Trail Waste Systems, Inc., GreenWaste Recovery, Inc., and Recology Santa Clara are entitled to under the Refuse Franchise and Residential Recycling Services Agreements; WHEREAS, a Solid Waste Rate Study was finalized on February 24, 2022 which analyzed the costs of service that comprise each monthly rate;
WHEREAS, on April 7, 2022, the City timely mailed notices of a public hearing to property owners and rate payers of Solid Waste Services that detailed proposed rate adjustments in accordance with Article XIIID §6 of the California Constitution (Proposition 218); and, WHEREAS, on May 24, 2022, the City held a public hearing on the proposed adjustments to fees for Solid Waste Services, and there was no majority protest.

NOW THEREFORE, BE IT FURTHER RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:

1. In accordance with Article XIIID § 6 of the California Constitution and as set forth in the accompanying staff report, incorporated herein by reference:

A. The revenues derived from the Solid Waste Services rates, as stated in Table A, attached hereto and incorporated herein, do not exceed the funds required to provide solid waste programs.

B. The revenues derived from the Solid Waste Services rates will not be used for any purpose other than solid waste programs.

C. The Solid Waste Services rates charged will not exceed the cost of solid waste programs per parcel.

D. The Solid Waste Services rates are only charged for solid waste programs that Resolution/Solid Waste Rates Page 3 of 13
Rev: 11/22/17
are currently available.

E. The Solid Waste Services rates are not charged for general governmental services.

2. Notice of the proposed Solid Waste Services rates was mailed on April 7, 2022, more than 45 days prior to the public hearing on this matter, in compliance with Proposition 218.

3. A public hearing was conducted on May 24, 2022, regarding the proposed rates to be charged and all protests and other comments were considered.

4. The number of written protests by owners of parcels within the City against the increased rates were tabulated by City staff at the hearing and did not constitute a majority protest.

5. That following the public hearing, the City Council approves and adopts the rates for collection and disposal of garbage, yard trimming and recycling collection, and the Annual Cleanup Campaign, as set forth in Table A, incorporated here by reference.

6. That any and all amounts by which the fees set forth in Table A exceed monies paid to contractors that provide Solid Waste Services in accordance with their respective agreements, shall solely belong to City and shall constitute cost recovery for Solid Waste Services rendered by City.

7. That a true and correct copy of this Resolution shall be kept on file in the Office of the City Clerk and in the Municipal Services Division of the City Finance Department at all times in which the rates are operable or until replaced with any future adjusted monthly charges by the City Council and shall be open to public inspection during the regular hours of such offices.

8. That the adjusted monthly charges for Solid Waste Services described herein are ordered to be effective for utility bills issued for services rendered on and after July 1, 2022 and thereafter.

9. Effective date. This resolution shall become effective immediately.

I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED

AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A REGULAR MEETING Resolution/Solid Waste Rates Page 4 of 13
Rev: 11/22/17
THEREOF HELD ON THE ___ DAY OF _________, 2022, BY THE FOLLOWING VOTE:

AYES: COUNCILORS:

NOES: COUNCILORS:

ABSENT: COUNCILORS:

ABSTAINED: COUNCILORS:

ATTEST: ______________________________

NORA PIMENTEL, MMC

ASSISTANT CITY CLERK

CITY OF SANTA CLARA
Attachments incorporated by reference:

1. Table A – City of Santa Clara Rates for Collection and Disposal of Garbage, Yard Trimming and Recycling Collection, and the Annual Cleanup Campaign for Utility Bills Issued for Services Rendered on and After July 1, 2022

TABLE A

CITY OF SANTA CLARA

RATES FOR COLLECTION AND DISPOSAL OF GARBAGE,
Resolution/Solid Waste Rates Page 5 of 13
Rev: 11/22/17

YARD TRIMMING AND RECYCLING COLLECTION, AND THE ANNUAL CLEANUP

CAMPAIGN,
(Effective for utility bills issued for services rendered on and after July 1, 2022) I. RESIDENTIAL USERS:

A. All Occupancy Classes (separate line billing)

1. Annual Cleanup Campaign $6.28/month1

2. Extra Bag Tag Pre-Paid Sticker Program for extra garbage bag setouts $6.58/bag tag
B. Single Occupancy (includes Multi-Family Complexes of 4 or Less Units)2 & 3

1. Regular service, (includes Yard Trimming Collection Service, and Recycling Services) single collection weekly:
a. One (1) thirty-two-gallon capacity garbage can
or Small Cart $46.18/month
b. One (1) twenty-gallon capacity super saver can
or Super Saver Cart $38.88/month
c. Two (2) thirty-two-gallon capacity garbage cans
or Medium Cart $68.61/month
d. Three (3) thirty-two-gallon capacity garbage cans
or Large Cart $90.90/month
e. Additional thirty-two (32) gallon container $25.95/month C. Multi-Family Occupancies where Yard Trimming Collection Services Provided:

Regular service, single collection weekly:

1. First dwelling unit (includes Yard Trimming and Recycling Collection Services):
a. One (1) thirty-two-gallon capacity garbage can
or Small Cart $46.18/month

1 Exemption with no charge to residence with limited space based on determination by Deputy Director of Public Works.
2 Last two weeks of each year, encompassing the Christmas holiday and the week following, single occupancy customers may set out up to four (4) extra thirty-two (32) gallon garbage bags total (two per week) at no extra charge.
3 Low income rate discount of $10.00 per month for single-family and townhouse customers that qualify for Silicon Valley Power’s Rate Assistance Program.

Resolution/Solid Waste Rates Page 6 of 13
Rev: 11/22/17
b. One (1) twenty-gallon capacity Super Saver
Cart. Only for duplexes with individual billing
and where carts are set out at each residence. $38.88/month c. Two (2) thirty-two-gallon capacity garbage cans
or Medium Cart $68.61/month
d. Three (3) thirty-two-gallon capacity garbage cans
or Large Cart $90.90/month

2. Each additional dwelling unit exceeding one (1) unit (includes recycling charge, but not Yard Trimming Collection Service charge) $32.62/month

3. For each additional thirty-two-gallon capacity container $25.95/month

4. Recycling Service: (first unit includes recycling charge automatically) All residential dwellings are required to have recycling services. The monthly charge is unbundled for additional units after the first unit. $6.67/month/unit weekly lift

5. Each additional weekly lift of recycling container. $6.67/month/unit weekly lift D. Townhouses – garbage and recycling provided (recycling not bundled into rate, but billed as a separate line item on utility bill); no Yard Trimming Collection Services:

1. Regular service, single collection weekly:
a. One (1) thirty-two-gallon capacity garbage can
or Small Cart $25.95/month
b. One (1) twenty-gallon capacity super saver
garbage can or Super Saver Cart only where can
setout and billed individually at each residence $18.65/month c. Two (2) thirty-two-gallon capacity garbage cans
or Medium Cart $48.38/month
d. Three (3) thirty-two-gallon capacity garbage cans
or Large Cart $70.67/month
e. Additional thirty-two (32) gallon capacity
container $25.95/month
Resolution/Solid Waste Rates Page 7 of 13
Rev: 11/22/17

2. Recycling Service, single collection weekly, additional charge per participating dwelling unit $6.67/month/unit weekly lift E. Yard Trimming Collection Service $13.56/month/unit
II. COMMERCIAL AND INSTITUTIONAL ESTABLISHMENTS; AND RESIDENTIAL

APARTMENT COMPLEXES (WHERE DWELLING UNITS NOT SERVED SEPARATELY) A. Regular Garbage Cart Service: Variable

CONTAINER
SIZE
ONE TO SIX COLLECTIONS PER WEEK4
(CAPACITY)

ONE TWO THREE FOUR FIVE SIX
One 32-gallon capacity
can, or Small Cart $26.33 $52.65 $78.99 $105.29 $131.66 $157.97 Two 32-gallon capacity
cans, or Medium Cart $49.12 $98.15 $147.30 $196.42 $245.47 $294.57 Three 32-gallon capacity
cans, or Large Cart $71.86 $143.72 $215.59 $287.41 $359.26 $431.13 Each additional
32-gallon capacity
container $26.09 $52.18 $78.25 $104.34 $130.47 $156.52
Rates shown applicable where no Recycling or Clean Green collection services provided.

Notwithstanding the above, in no event will the minimum charge for service for commercial and institutional establishments be less than $26.33.

4 For complexes with recycling services, add $6.67 per unit per month charge.

Resolution/Solid Waste Rates Page 8 of 13
Rev: 11/22/17
B. Regular Recycling Cart Service: Variable
Contractor bills customers for commercial recycling services directly, not the City. Per Exhibit A, Section 3.C.v. of Agreement, if a commercial customer requires more than 96 gallons of recycling service per week, Contractor shall charge customer up to a maximum of the corresponding tariff level for the specific container and service level, plus ten percent (10%) for billing and franchise fees.

Contractor shall retain five percent (5%) for billing and remit five percent (5%) to City on a quarterly basis, along with its non-exclusive franchise fees. Rates below include the ten percent (10%) markup.

CONTAINER

SIZE ONE TO SIX COLLECTIONS PER WEEK
(CAPACITY)

ONE TWO THREE FOUR FIVE SIX
First 96-gallon container None $72.77 $109.15 $145.50 $181.87 $218.26 Each additional 96-gallon
container $36.11 $72.77 $109.15 $145.50 $181.87 $218.26 C. Source Separated Food Scrap and Organic Waste Service

CONTAINER

SIZE (CAPACITY)

FOOD SCRAP RECYCLING

COLLECTIONS PER WEEK

ONE TWO THREE FOUR FIVE
First 64-gallon container (collection rate) $26.81 $53.52 $80.35 $107.18 $133.91 Each additional 64-gallon container (collection rate) $26.49 $52.94 $79.40 $105.88 $132.44 Processing cost per container $7.55 $14.86 $22.15 $29.45 $36.74 Contractor bills customers for food scrap recycling services (collection and processing) directly.

Collection rates above include ten percent (10%) for billing and franchise fees. Contractor shall retain five percent (5%) for billing and remit five percent (5%) to City on a quarterly basis, along with its nonexclusive franchise fees. Contractor shall invoice City on a monthly basis for processing costs.

Processing cost per container include ten percent (10%) for billing and franchise fees.

Resolution/Solid Waste Rates Page 9 of 13
Rev: 11/22/17
D. Front Load Bin Garbage Service (loose – not compacted): Variable, for commercial, institutional, and residential multi-family occupancy customers; monthly charge (for weekly collections) with container furnished by Contractor.

BIN SIZE
(Cubic Yards)
ONE TO SIX COLLECTIONS PER WEEK4

ONE TWO THREE FOUR FIVE SIX
1 $155.53 $308.40 $458.72 $606.41 $754.11 $899.19
1½ $216.07 $430.55 $637.65 $840.09 $1044.20 $1243.78
2 $276.57 $547.99 $819.41 $1080.69 $1341.44 $1607.69
3 $398.92 $786.90 $1165.04 $1533.13 $1906.66 $2277.09
4 $517.93 $1025.17 $1523.57 $2002.46 $2488.31 $2941.91
6 $740.22 $1470.06 $2166.10 $2862.13 $3558.15 $4255.17
8 $957.96 $1911.85 $2869.85 $3721.72 $4628.00 $5566.44
E. Front Load Bin Garbage Service (Compacted): Variable, for commercial, institutional, and residential multi-family occupancy customers; monthly charge (for weekly collections) with container furnished by Contractor.

BIN SIZE
(Cubic Yards)
ONE TO SIX COLLECTIONS PER WEEK4

ONE TWO THREE FOUR FIVE SIX
1 $244.37 $486.08 $725.24 $961.77 $1198.31 $1432.23
1½ $349.33 $697.07 $1037.43 $1373.13 $1710.50 $2043.34
2 $454.25 $903.35 $1352.45 $1791.41 $2229.84 $2673.77
3 $665.44 $1319.94 $1964.60 $2599.21 $3239.26 $3876.21
4 $873.29 $1735.89 $2589.65 $3423.90 $4265.11 $5074.07
6 $1273.26 $2536.14 $3765.22 $4994.29 $6223.35 $7453.41 Resolution/Solid Waste Rates Page 10 of 13
Rev: 11/22/17
8 $1668.68 $3333.29 $5002.01 $6564.60 $8181.60 $9830.76 F. Front Load Bin Recycling Service: Variable, for commercial, and institutional customers; monthly charge (for weekly collections) with container furnished by Contractor.

Contractor bills customers for commercial recycling services directly, not the City. Per Exhibit A, Section C. (v.) of Agreement, if a commercial customer requires more than 96 gallons of recycling service per week, Contractor may charge customer. Contractor shall retain five percent (5%) for billing and remit five percent (5%) to City on a quarterly basis, along with its non-exclusive franchise fees.

BIN SIZE
(Cubic Yards)

ONE TO SIX COLLECTIONS PER WEEK

ONE TWO THREE FOUR FIVE SIX
1 $82.04 $160.85 $236.53 $308.99 $381.47 $450.74
1½ $118.25 $234.60 $341.90 $443.51 $547.15 $645.27
2 $154.44 $302.59 $450.74 $586.50 $721.59 $863.41
3 $228.43 $443.51 $646.54 $837.29 $1034.69 $1228.32
4 $298.34 $583.64 $858.11 $1108.75 $1367.88 $1587.62
6 $418.95 $825.23 $1190.17 $1555.10 $1920.05 $2286.20
8 $533.99 $1063.01 $1597.06 $2001.37 $2472.21 $2982.34
G. Front Load Bin Source Separated Food Scrap and Organic Waste Service

FOOD SCRAP RECYCLING

BIN COLLECTIONS PER WEEK

SIZE (CAPACITY) ONE TWO THREE FOUR FIVE
One (1) cubic yard (collection rate) $82.04 $160.85 $236.53 $308.99 $381.47 Processing cost per one (1) cubic yard
container $23.55 $46.59 $69.61 $92.64 $115.67
Three (3) cubic yards (collection rate) $228.43 $443.51 $646.54 $837.29 $1034.69 Processing cost per three (3) cubic yard
container $69.88 $138.96 $208.05 $277.13 $346.23
Contractor bills customers for food scrap recycling services directly. Contractor shall retain five percent Resolution/Solid Waste Rates Page 11 of 13
Rev: 11/22/17
(5%) for billing and remit five percent (5%) to City on a quarterly basis, along with its non-exclusive franchise fees. Contractor shall invoice City on a monthly basis for processing costs. Processing cost per container includes ten percent (10%) for billing and franchise fees.

H. Roll-Off Bin Garbage and Construction and Demolition Service: Per collection with roll-off container furnished by Contractor and front loader compactor bin furnished by customer. The rates specified below do not include recycling/disposal costs. Customer shall be billed by Contractor for the actual charges incurred by the Contractor for recycling and/or disposal of collected contents plus ten percent (10%) markup for billing and franchise fees. This 10% markup is included in the rates below.

BIN SIZE/CAPACITY OPEN (Loose)

CONTAINER
(per cubic yard)
COMPACTED (Closed)

CONTAINER
(per cubic yard)
10 cubic yards or less $37.04 $48.79
11 to 15 cubic yards $37.04 $42.34
16 to 20 cubic yards $33.80 $38.68
21 to 29 cubic yards $30.96 $38.68
30 cubic yards $26.09 $38.68
31 to 39 cubic yards $24.69 $38.68
40 cubic yards & over $23.90 $38.68
Demurrage charge (one-week extension
without collection) $64.70/week $64.70/week

I I I I
Resolution/Solid Waste Rates Page 12 of 13
Rev: 11/22/17
III. SPECIAL CHARGES
A. Provided by Mission Trail Waste Systems and Billed to Customer by City:

1. Manual Front-Load Bin Push/Pull Charges

RATE LEVEL ONE-WAY DISTANCE RATE
L-1 6 to 20 feet $29.78
L-2 21 to 40 feet $38.86
L-3 41 to 60 feet $57.91
L-4 61 to 80 feet $69.08
L-5 81 to 100 feet $96.40
L-6 101 to 120 feet $126.60
L-7 121 to 140 feet $156.40
L-8 141 to 160 feet $184.50
L-9 161 to 180 feet $214.29
L-10 181 to 200+ feet $240.37

2. Lock Bar/ Lock Jam Front Load Services
One-time installation fee, including one (1)
lock:
$87.70

3. Purchase of Lock
Per each, includes delivery of lock: $41.37

4. Front-Load Bin Steam Cleaning - Per
occurrence, not include once per year annual
cleaning: $105.10
B. Provided by Mission Trail Waste Systems and Billed to Customer by Contractor:

Resolution/Solid Waste Rates Page 13 of 13
Rev: 11/22/17

1. Roll-Off Bin Steam Cleaning - Per occurrence
not including once per year annual cleaning: $515.12*

2. Saturday Service Roll-Off Bin - Per
occurrence:
$560.65*

3. “Emergency” Roll-Off Load Collection on a
Weekday- Per driver hour with one (1) hour
minimum charge:
$300.35*

4. Relocation of Roll-Off Bin - Per driver hour
with one (1) hour minimum charge: $300.35*

5. Roll-Off Driver Time - Per driver hour with
one (1) hour minimum charge: $300.35*

6. Counter-balance Front-Load Covered Bin
(Premium charge paid by Customer –
availability limited to 100 bins total) $11.88/unit/month

7. Special Charges for return trips, non-scheduled
collections, overages, and contamination:

Monthly collection charge for cart or
bin size multiplied by 12, divided by
52, and multiplied by 1.5 per
occurrence

8. Illegal bin removal and storage fee: $326.49* plus disposal cost per occurrence
* Roll-off bin special services charges include markup of ten percent (10%) for billing and franchise fees. Contractor shall retain five percent (5%) for billing and remit five percent (5%) to City on a quarterly basis.

C. Provided by Recology for Residential Recycling Customers:

1. Manual Push/Pull Charges (first 10 feet complimentary): $1.00 per foot moved

2. Front Loading Bin Cleaning Charge: $125.00 per
cleaning

3. Driver-time Reimbursement: $95.00 per hour

4. Lock-Jam Bin Installations: $75.00 flat fee

5. Charge to Service Contaminated Toter: $125.00 flat fee per container
Resolution/Solid Waste Rates Page 14 of 13
Rev: 11/22/17

6. Charge to Service Contaminated Front-Loading Bins: $25.00 flat fee per container

7. Charge to haul compactor: $512 per haul **
** Contractor provides billing and collection for compactor hauling services. z
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YOU CAN PARTICIPATE IN THE PROCESS
A public hearing on these proposed increases will
be held during the Santa Clara City Council
Meeting scheduled for Tuesday, May 24, 2022 at 6 p.m. This meeting will be held virtually via Zoom, consistent with State of California Executive
Order N-29-20.

Meeting access:
https:// sa ntacla ra.zoom. us/j/99706759306
Meeting ID: 997-0675-9306
Phone: 669-900-6833 or 877-853-5257 (Toll Free)
Proposed rate increases for the Solid Waste
Program (Garbage, Yard Trimmings, Recycling
and Annual Cleanup Campaign) will be
considered for adoption at the public hearing.

To formally protest the proposed increases you
must do so in writing, as protests cannot be
accepted via email or telephone. Written protests
must be received before the close of the public
hearing. To be counted, protests must be mailed
or dropped off to:

City Clerk's Office - Utility Rate Comments
City of Santa Clara
1500 Warburton Avenue
Santa Clara , CA 95050
Written protests must include your name, your
signature, the address of the property for which
you are the owner or utility customer, and the
rate(s) you are protesting. If protests are received
from a majority of the parcels affected by the
proposed rate increase by the close of public
hearing, the City Council will not impose the
increase.

If you have questions, please call the Department
of Public Works at 408-615-3080.

NOTICE OF PUBLIC HEARING AND

PROPOSED SOLID WASTE RATE

INCREASES FOR UTILITY BILLS ON
AND AFTER JULY 1, 2022
The City provides customers with dependable,
efficient, safe, and cost-effective solid waste
services for residents and businesses that call
Santa Clara home.

The proposed solid waste rates have been
generated through a recent rate study to ensure
that each service rate equitably captures the
cost of service. Each proposed solid waste rate
was developed to include the sum of the
following cost elements:
1) Collection costs;
2) Processing and disposal or composting
costs; and
3) City program costs.

Rate increases are necessary to fund the
contractually obligated compensation
adjustments paid to the City's solid waste
service providers.

The City will continue to implement appropriate
and prudent cost-saving and cost-controlling
measures to maintain the affordability of these
basic services.

For more information about the City's rates,
visit SantaClaraCA.gov /SolidWasteRates
PROPOSED SOLID WASTE RATES FISCAL YEAR 2022-2023
Residential, Commercial and Institutional Customers Only The proposed rates shown below generate revenues to cover solid waste programs, which include garbage collection, processing and disposal, yard trimmings collection and processing, recyclables collection and processing, the Annual Cleanup Campaign, street sweeping, and other solid waste program overhead and functions. The proposed rates also fund landfill post-closure maintenance and monitoring and financial system software Capital Improvement Projects. These rate increases do not apply to customers in areas zoned for industrial use.

Monthly Residential Rates: Total Monthly Rate Is sum of Garbage Subscription Current Proposed (A1-4) plus Yard Trimmings (B), Annual Cleanup Campaign (C), and Recycling (D). Rate Rate A1. 20-gallon Garbage Cart Charge $17.37 $18.65
A2. 32-gallon Garbage Cart Charge $24.15 $25.95
A3. 64-gallon Garbage Cart Charge $44.91 $48.38
A4. 96-gallon Garbage Cart Charge $65.59 $70.67
B. Yard Trimmings Per Unit Charge (not charged to townhomes) $13.04 $13.56 C. Annual Cleanup Campaign Charge $6.28 $6.28
D. Recycling Charge Per Unit Based on Once Weekly Pickup (also applied to each $5.58 $6.67 additional pickup)
E. Extra Garbage Bag Tags $6.04 $6.58
Proposed Monthly Commercial Business and Multi-Family Loose Garbage Bin Rate Billed by City Container Size 1/week 2/week 3/week 4/week 5/week 6/week 1 Cubic Yard $155.53 $308.40 $458.72 $606.41 $754.11 $899.19

1.5 Cubic Yards $216.07 $430.55 $637.65 $840.09 $1,044.20 $1,243.78 2 Cubic Yards $276.57 $547.99 $819.41 $1,080.69 $1,341.44 $1,607.69 3 Cubic Yards $398.92 $786.90 $1,165.04 $1,533.13 $1,906.66 $2,277.09 4 Cubic Yards $517.93 $1,025.17 $1,523.57 $2,002.46 $2,488.31 $2,941.91 6 Cubic Yards $740.22 $1,470.06 $2,166.10 $2,862.13 $3,558.15 $4,255.17 8 Cubic Yards $957.96 $1,911 .85 $2,869.85 $3,721.72 $4,628.00 $5,566.44 Proposed Monthly Co act d Garbage Bin Rate Billed by City (NEW) Container Size 1/week 2/week 3/week 4/week 5/week 6/week 1 Cubic Yard $244.37 $486.08 $725.24 $961.77 $1,198.31 $1,432.23

1.5 Cubic Yards $349.33 $697.07 $1,037.43 $1,373.13 $1,710.50 $2,043.34 2 Cubic Yards $454.25 $903.35 $1,352.45 $1,791.41 $2,229.84 $2,673.77 3 Cubic Yards $665.44 $1,319.94 $1,964.60 $2,599.21 $3,239.26 $3,876.21 4 Cubic Yards $873.29 $1,735.89 $2,589.65 $3,423.90 $4,265.11 $5,074.07 6 Cubic Yards $1,273.26 $2,536.14 $3,765.22 $4,994.29 $6,223.35 $7,453.41 8 Cubic Yards $1,668.68 $3,333.29 $5,002.01 $6,564.60 $8,181 .60 $9,830.76 Proposed Monthly Commercial Business Garbage Cart Rate Billed by City Container Size 1/week 2/week 3/week 4/week 5/week 6/week 32-gallon $26.33 $52.65 $78.99 $105.29 $131.66 $157.97
64-gallon $49.12 $98.15 $147.30 $196.42 $245.47 $294.57 96-gallon $71.86 $143.72 $215.59 $287.41 $359.26 $431.13 Each Additional 32- $26.09 $52.18 $78.25 $104.34 $130.47 $156.52 gallon Monthly Commercial Services Billed by Mission Trail Waste Systems Proposed Increase A. Commercial Recycling1 9%
B. Voluntary Commercial Food Scraps and Organics 9%
C. Roll-off compactor and debris box per pull charges 9% D. Roll-off debris box and compactor disposal charges Up to $228.75 ton E. Mission Trail Waste Systems special charges2 9%

1. 96-gallons of recycling service included in base garbage rates, additional service available for an extra charge. All charges based on once weekly pickup.

2. All other charges including, but not limited to, push/pull, driver-time, lock installation, extra pickups, and Saturday service.

Attachment 3
Santa Clara County Residential Cart Rate Comparison
CITY
Supersaver
(or 20-gal cart)
Small
(or 32-gal cart)
Medium
(or 65-gal cart)
Large
(or 95-gal cart)
Anticipates Rate
Increases in FY
22/23
CAMPBELL (21/22) $30.25 $37.411 $67.72 $98.04 
CUPERTINO (2022) N/A $36.662 $70.562 $104.452  2
GILROY (21/22) N/A $35.36 $50.74 $66.52 Undetermined
LOS ALTOS (21/22) $39.13 $42.15 $84.28 $126.45 
LOS GATOS (21/22) $32.23 $40.111 $73.07 $106.03 
MILPITAS (21/22) $34.08
(64-gallon
split-cart with
19 gal for
garbage, 19
gal for food
scraps = 38-
gal total)
$37.04
(64-gallon
split-cart with
26 gal for
garbage, 19
gal for food
scraps = 45-
gal total)
$43.56
(64-gallon
split-cart with
45 gal for
garbage, 19
gal for food
scraps = 64-
gal total)
$50.04
(96-gallon
split-cart with
67 gal for
garbage, 29
gal for food
scraps = 96-
gal total)
Undetermined
MORGAN HILL (21/22) N/A3 N/A3 N/A3 N/A3 Undetermined

MOUNTAIN VIEW
(21/22)
$25.45 $37.10 $74.20 $111.30 
PALO ALTO (21/22) $27.81 $50.07 $100.15 $150.22
SAN JOSE (21/22) N/A $45.77 $91.54 $137.31 
SANTA CLARA (21/22) $35.99 $42.77 $63.53 $84.21 
SARATOGA (21/22) $32.48 $40.261 $73.20 $106.14 
SUNNYVALE (21/22) $38.85
(27-gallon
split-cart)
$43.13
(43-gallon
split-cart)
$48.54
(64-gallon
split-cart)
N/A Undetermined
AVERAGE $32.92 $40.65 $70.09 $103.70
SANTA CLARA Single
Family Rate (22/23) -
does not include CUC
charge
$38.88 $46.18 $68.61 $90.90

SANTA CLARA
Townhouse Rate (22/23)
– does not include CUC
charge
$25.32 $32.62 $55.05 $77.34
1Rates are for 35-gallon carts. These jurisdictions do not provide 32-gallon carts. 2Cupertino rates were updated on February 1, 2022, and rate increases are anticipated in February 2023. 3Basic Single-Family Rate with Street Sweeping – unlimited basic solid waste service and garbage toter rental – flat rate of $37.34/month for hillside and $34.32/month for flat areas.

Attachment 4
Santa Clara County Commercial Bin Rate Comparison
1 CUBIC YD

BIN SERVICE
1 Time/Week
1 CUBIC YD

BIN SERVICE
3 Times/Week
1 CUBIC YD

BIN SERVICE
5 Times/Week
3 CUBIC YD

BIN SERVICE
1 Time/Week
3 CUBIC YD

BIN SERVICE
3 Times/Week
3 CUBIC YD

BIN SERVICE
5 Times/Week
Separate
Charge for
Organics
Collection
Service
Anticipates
Rate Increases
in FY 22/23
CITY
CAMPBELL (21/22) $172.621 $522.811 $873.001 $345.24 $1,045.62 $1,746.00  CUPERTINO (2022) $188.701,2 $566.151,2 $943.611,2 $301.942 $905.812 $1,509.732   2 GILROY (21/22) N/A N/A N/A $341.44 $ 945.46 $ 1,549.49  Undetermined LOS ALTOS (21/22) $165.35 $496.08 $826.82 $496.07 $1,488.27 $2,480.44  LOS GATOS (21/22) $214.011 $648.331 $1,082.651 $428.02 $1,296.66 $2,165.30  MILPITAS (21/22) $89.17 $204.18 $306.41 $200.68 $531.03 $855.49  Undetermined MORGAN HILL (21/22) N/A N/A N/A $377.57 $1,060.54 $1,743.40  Undetermined

MOUNTAIN VIEW
(21/22)
$113.50 $385.35 $657.00 $339.80 $1,064.90 $1,789.85   PALO ALTO (21/22) $219.49 $590.31 $959.98 $504.40 $1,455.48 $2,408.85  SAN JOSE (21/22) $140.923 $369.613 $598.363 $286.353 $782.443 $1,278.483  SANTA CLARA (21/22) $149.93 $442.56 $728.04 $389.02 $1,137.97 $1,864.40  SARATOGA (21/22) $245.221 $743.121 $1,241.011 $490.44 $1,486.23 $2,482.02  SUNNYVALE (21/22) $179.70 $504.63 $829.55 $446.54 $1,301.56 $2,156.56  Undetermined AVERAGE $170.78 $497.56 $822.40 $380.58 $1,115.54 $1,848.46 SANTA CLARA (22/23) $155.53 $458.72 $754.11 $398.92 $1,165.04 $1,906.66 1Rates are for 1.5 cubic yard bins. These jurisdictions do not provide 1 cubic yard bins. 2Cupertino rates were updated on February 1, 2022, and rate increases are anticipated in February 2023. 3Rates shown reflect multi-family service rates. San Jose has a separate rate structure for commercial customers that follows a wet/dry program, which is not included in this table. More information on San Jose’s wet/dry program can be found at www.republicservices.com/municipality/san-jose-ca.

City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
22-721 Agenda Date: 5/24/2022

REPORT TO COUNCIL

SUBJECT
Approval of a Status Report on the Lease Agreement Between the City of Santa Clara and the Police Activities League (PAL) for the Operation of a BMX Track

COUNCIL PILLAR
Enhance Community Sports, Recreational and Arts Assets

BACKGROUND
At its April 19, 2022 meeting, the City Council directed staff to provide a status report at the May 24, 2022 Council meeting on the following issues related to the lease agreement with PAL:

1. PAL’s ability to comply with insurance requirements outlined in the lease agreements;

2. The willingness of USA BMX to continue to work with PAL in sanctioning racing activities;

3. The feasibility of the City assuming responsibility for BMX operations; and

4. The status of a fiscal audit proposed by PAL related to BMX operations.

The purpose of this report to Council is to provide the requested information.

DISCUSSION

1. Insurance
As of May 19, 2022, PAL is fully compliant with the insurance requirements outlined in the City Ground Lease Agreement. (The original ground lease and two amendments are attached as Attachments 1, 2 and 3.) As such, PAL is now able to resume BMX operations at the facility. It is anticipated that BMX programming will have resumed prior to the presentation of this report to City Council on May 24, 2022.

2. USA BMX
On May 11, 2022, staff received an email from USA BMX stating that they are no longer willing to work with the PAL Board and officially requested that the City of Santa Clara vote to turn the lease over to either USA BMX directly or the City’s Park and Recreation Department so USA BMX could work directly with one of these two entities. In light of this statement by USA BMX, it is anticipated that the Santa Clara site will not be eligible for sanctioned events after May 24, 2022.

3. City staff assuming responsibility for BMX track
As staff evaluated the feasibility of assuming responsibility for BMX operations, several factors were taken into consideration:

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22-721 Agenda Date: 5/24/2022
· The City is facing a significant revenue shortfall in its General Fund. As a department that relies heavily on the General Fund, the Parks and Recreation Department has suffered significant cutbacks and turnover in its staffing with 11 current, full-time equivalent vacancies. Moreover, the Citywide cost containment strategy that limits As-Needed positions further strains the Department’s ability to restore services and adequately address its current workload.

Should the Council wish to shift operational responsibility to the Department, a preliminary estimate to oversee a contract would include the need for two As-Needed Recreation Coordinators (1,950 hours) to supervise the volunteer track operations and manage the agreement; one As-Needed Grounds Maintenance Worker (1,000 hours) to provide facility support and budget for operations, utilities and maintenance. Refinement of these costs would be subject to further review of prior costs and expenditures as well as projected revenues. · If a third-party contractor were to be hired by the City to manage the track, a transition to a new operator would require the investment of staff time and resources to develop a procurement process to select a new operator. Moreover, it would require the identification of terms and conditions for a new agreement including length of the agreement, cost sharing provisions and scope of programming to be provided. Updated terms and conditions, including insurance requirements would also be required, as the current agreement is outdated. · The City has an obligation to make the site available for future development as part of the Related project upon an 18-month notice. While it is not known when notice will be given, the City amended the lease agreement to change the term of the agreement with PAL to month-to-month in recognition of this obligation. Should the City wish to proceed with a new lease or operator for the site, the investment of City time and resources could be moot should notice be given that development is proceeding and the 18-month notice is triggered. · PAL is in compliance with the provisions of the existing lease agreement. The lease does not require that activities be sanctioned events, but rather that PAL make a BMX track available for the Santa Clara community as an enhancement for youth sports in the City. The lease agreement further states that “the property shall not be used for any other use or purpose” (Section 4.1).

4. Status of a fiscal audit proposed by PAL
PAL has retained Mr. Richard Gordon of the Withum Firm to conduct a third-party audit of the BMX program. With over 30 years of experience, Mr. Gordon provides services in investigations and forensic accounting. The work to be conducted by Mr. Gordon will help inform the PAL Board as to the revenues and expenses that can be projected for the BMX track, as well as any system controls that may need to be enhanced. This information would also be helpful should the City wish to proceed with further evaluation of assuming responsibility for the BMX track.

Summary
In light of these factors, staff recommends that the current lease agreement with PAL remain in place until such time as termination is required in accordance with the City’s future development plans.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project" within the meaning of the California City of Santa Clara Page 2 of 3 Printed on 5/19/2022
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22-721 Agenda Date: 5/24/2022
Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378(b)(5) in that it is an administrative activity that will not result in direct or indirect physical changes to the environment.

FISCAL IMPACT
The original lease agreement provided for an annual lease payment of $1,200 with compounded interest of 3%. For calendar year 2021, the amount due for the lease is $2,368.30. Should the lease with PAL be terminated, the City would bill PAL for the appropriate pro rata share of the current calendar year.

COORDINATION
This memorandum has been coordinated with the Finance Department, City Attorney and City Manager’s offices.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] <mailto:[email protected]> or at the public information desk at any City of Santa Clara public library.

ALTERNATIVES

1. Note and file staff report.

2. Any other Council direction.

RECOMMENDATION
Alternative #1: Note and file staff report.

Reviewed by: Cynthia Bojorquez, Assistant City Manager
Approved by: Rajeev Batra, City Manager

ATTACHMENTS
Attachment #1 - Ground Lease
Attachment #2 - Ground Lease Amendment #1
Attachment #3 - Ground Lease Amendment #2
City of Santa Clara Page 3 of 3 Printed on 5/19/2022
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GROUND LEASE
TillS GROUND LEASE ("Lease") is made and executed as of Jf , 1998, by and between the City of Santa Clara, a chartered California municipal co oration ("City") and SANTA CLARA POLICE ACTMTIES LEAGUE, a California non-profit cotporation ("PAL"), with its principal place of business in Santa Clara, California. City and PAL may be refetTed to individually as a "Party" or collectively as the "Parties" to this Lease. The City Manager shall serve as Conh'act Administrator for this Lease on behalf of the City.

WITNESSETH
WHEREAS, PAL wishes to develop a bicycle motocross ("BMX") track for youth activities in Santa Clara; and
WHEREAS, the City wishes to enter into a lease agreement allowing for the limited use of a portion of closed landfill property owned by the City to provide an-area for development of a BMX track for the Santa Clara community.

NOW, THEREFORE, the Parties agree as follows.

1. Property. PAL shall lease from City and City shall lease to PAL the "Property" consisting of all of the real property situated in the County of Santa Clara, State of California, as more particularly described in Exhibit "A" hereto. The lease of the Property is subject to the Pennitted Use recited in Section 4 of this Lease. PAL acknowledges the site is a closed landfill, with landfill gas collection · system appurtenances, which is governed and pennitted by state regulations. PAL promises and covenants that the landfill cpver and subsurface shall not be disturbed by PAL' s development and construction.

2. Lease Term. The term of this Lease ("Initial Term") shall commence on the date of execution of this Lease by all of the Parties (the "Lease Commencement Date") and shall continue for a period expiring December 31, 2013 (the "Lease Expiration Date"), unless sooner terminated in accordance with the provisions hereof.

2.1 Option to Extend. PAL shall have an option to extend the Initial Term for two additional five (5) year te1ms commencing on the Lease Expiration Date. PAL may exercise this option to extend by giving written notice to the City at least six (6) months prior to the Lease Expiration Date. If PAL gives such notice, the Initial Tetm shall be extended to December 31, 2018 on all of the terms of this Lease. If PAL gives such notice six ( 6) months ptior to the expiration of the First _Extended Tetm, the Initial Tenn shall be extended to December 31, 2023.

Ground Lease/Santa Clara Police Activities League . Pagelofl6

3. Early Te1mination Option. PAL shall have the option, at any time during the Initial Tem1 or any Extended Te1m, upon at least six (6) months prior w1itten notice to City (the "Early Tennination Notice") to terminate this Lease and smrender the Property to City in accordance with the provisions of Section I 0. If PAL properly exercises said option, this Lease shall expire at midnight on the date set fo1ih in P AL's Early Tennination Notice.

4. Use of Prope1ty by PAL.

4.1 Pe1mitted Use. PAL shall use the Property solely for the purposes of the development of a BMX track at no cost to the City. PAL shall_ make the BMX track available for Santa Clara community use, and shall offer the BMX track as an enhancement for youth sports in the City. The Prope1iy shall not be used for any other. use or purpose.
· 4.2 Operational Responsibilities. PAL shall operate, at P AL's sci le cost and expense, the Property in a ma1111er which is appropriate for the operation of a BMX track for use by youth.

4.3 Security Responsibility. PAL shall provide, at PAL's sole cost and expense security sufficient to provide for the safe use of the Prope1iy. The security shall be sufficient to address safety issues raised by the pe1mitted uses recited in .

Section 4.1. PAL shall also provide a 6' height chain link fence with gates around the riding facility. This fence shall be installed prior to opening for use, unless written permission is granted by City.

4.4 Responsibility for Compliance with Laws. In the use and occupation of the Property, the maintenance and operation of the Improvements, and the conduct of P AL's business on or about the Prope1iy, PAL, at its sole cost, shall promptly comply with all present and future laws, ordinances, orders, rules, regulations, licenses, permits, approvals and requirements of any federal, state and municipal govermnents, comts, departments, commissions, boards and officers having jurisdiction over the Prope1iy or the Improvements which may be applicable to the Property or to the use or manner of use of the Prcipe1iy or to the owners, lessees or occupants thereof, including, without linlitation, (a) the Americans with Disabilities Act, (b) all enviromnental laws, including, without limitation, all federal, state or local laws, ordinances or regulations relating to enviromnental conditions on, under or about the Property (including, without limitation, soil, landfill, landfill gas and groundwater conditions), and the use, generation, inanufacture, production, storage 01' disposal on, under or about the Property or transportation to or from the Property of any hazardous or toxic substance, mate1ial or waste which is or becomes regulated by any local govermnental authodty, the State of California or the United States Government, and (c) all laws relating to land use, zoning, building, and occupancy.

4.5 Responsibility for Dust Control. The ± 3 acres of the leased property used for Ground Lease/Santa Clara Police Activities League Page 2 of 16 accessed parking as more particularly desciibed in Exhibit B must have a surface treatment suitable to the City Engineer to contain dust at all times. The parking lot shall be treated as soon as practicable, but in no event later than one hundred twenty (l20) days from execution of this Lease.

4.6 Responsibility for Use of Motor Vehicles.

4.7 4.6.1 PAL shall not allow motorized vehicles, other than those required for the maintenance and operation of the site, outside of the parking area. PAL shall secure the parking area so that mot01ized vehicles cannot access the non-parking areas on the site. Access to the area outside the parking Jot shall be blocked by bollards or similar devices. ·

4.6.2 PAL shall not allow motorized activities on the site. The motorized activities prohibited on the site and which PAL shall prevent include but are not limited to motorcycle motocross, go-carts, and off-road vehicles.

Responsibility for Site Development. PAL shall develop the site and shall perfonn constrnction activities in a manner which does not disturb the existing landfill cover and site drainage. No constrnction, excavation, movement of soil or use of machine1y activities are pe1mitted without piior approval of the City. Final detailed constrnction and development plans shall be submitted to the City for review and approval prior to submission to required regulatory agencies, including the California Integrated Waste Management. Board, Regional Water Quality Control Board-San Francisco Bay Region, Bay Area Air Quality Management Distiict, County of Santa Clara Enviromnental Health Department (Local Enforcement Agent for Site), for approvals.

Activities and cost of plam1ing, design, permit approvals, constrnction and maintenance activities associated with this Lease shall be borne by PAL. PAL shall ensure that City receives copies of all submitted permit applications, c01Tespondence, notices and approvals.

PAL shall · ensure for itself, its agents and its contractors that all of the envir01m1ental control facilities and appurtenances at the prope1iy have been inspected and confumed. PAL shall take appropiiate measures to protect these facilities. Any damages shall be reported immediately to the City at ( 408) 984-3080.

PAL shall conduct all activities to minimize or eliminate any impact upon the landfill. PAL acknowledges that the Prope1iy is a former landfill and that uses and operations on the landfill are limited by law, regulato1y agencies, and by the closure plan. PAL agrees to limit or eliminate any and all of their activities in the event that P AL's activities in any way violate the closure plan or the regulatory agency requirements. PAL shall allow City and/or Pacific Energy access to the Ground Lease/Santa Clara Police Activities League Page 3 of 16 site at any time if access is necessary to facilitate landfill closure or maintenance requirements.

4.8 Responsibility for Priority Use and Protection of Landfill Gas Collection Systems and Appurtenances. PAL's leaseholder interest to their interest in the property is subordinate _to the leaseholder in favor of Pacific Energy ("Pacific Energy") by the City in a lease dated June 27, 1984, or subsequent amendments entitled "Lease and Operating Agreement for Landfill Gas Conversion Systems" ( see partial lease attached as Exhibit B). PAL is to be aware of Pacific Energy's rights granted under . this Lease and that PAL is to adjust its construction and activities to reasonably acco1mnodate Pacific Energy's activities.

4.9 PAL shall not develop, constrnct, or operate in any manner which could damage or compromise landfill gas collection systems and appurtenances. PAL shall take all appropriate measures to protect Pacific Energy's landfill gas collection system from damage. PAL shall field verify along with a Pacific Energy representative, the location of Pacific Energy's pipelines, wells, and appurtenances prior to any constrnction or repair activities.

All damage to wells and lines shall be reported to City and to Pacific Energy immediately. PAL acknowledges that failure to do so may result in hazardous conditions including without limitation plant shutdown. A damage report noting the damage incurred, time of damage, duration of outage, signatures of responsible parties, etc. will be filed immediately by PAL with Pacific Energy.

Verbal notification shall be made by calling the facility at (408) 970-0875 or by paging plant personnel at (408) 751-4223, or (408) 751-4147.

Any damage caused by PAL, its officers, members, guests, employees, agents and contractors to Pacific Energy's property shall be repaired by Pacific Energy. Such physical damage to Pacific Energy property that does not cause the facility to suspend operations will be compensated at actual cost of labor, outside services and materials. In the event that P AL's actions cause Pacific Energy'_s facility to cease operation PAL shall pay Pacific Energy for all damages at cost and in addition, shall pay for all consequential damages resulting from such action.

PAL shall temporarily suspend BMX activities if requested by Pacific Energy in order for them to make necessary repairs and perform required maintenance on the landfill gas collection system. City shall request that Pacific Energy endeavor to provide at least fifteen (15) days notice of planned maintenance activities.

Access Easement. City shall grant PAL an access easement to the Property.

Sa. • Rent. PAL shall pay City annual rent in the amount of one thousand two hundred dollars ($1,200.00) per year. The initial rental payment will be prorated from the effective date of the Lease through the end of the calendar year 1998. Commencing on January!, 1999, Ground Lease/Santa Clara Police Activities League Page 4 of 16 Sb.

6. 7.
and eve1y year thereafter, PAL shall pay City the rental amount of one thousand two hundred dollars ($1,200.00), plus an amrnal tln·ee percent (3%) increase. The increase shall be compounded. For example, the rental amount on Janumy 1, 1999, shall be one thousand two hundred thirty-six dollars ($1,236.00) and on Janumy 1, 2000, the rental amom1t shall be one thousand two hundred seventy-three dollars ($1,273.00).

The term "Rent" as used in this Lease shall include the amrnal rent described above and any other mnounts due and payable by PAL to City under this Lease.

Development Fees. City shall waive all off site development fees and building permit fees.

Taxes, Assessments and Other Charges.

6.1 6.2
Payment of Taxes. PAL covenants and agrees to pay, prior to delinquency, all real and personal property and other taxes, general and special assessments, and other charges of eve1y description ("taxes") levied or assessed against P AL's property, the Improvements, the Property or the real property of which the Property is a· part. If City delivers notice to PAL that any such taxes or other charges are due and payable, PAL shall pay the full amount of such taxes or other charges to City within ten (10) days after receipt of such notice from City.

Utility and Other Charges. PAL shall pay, prior to delinquency, all charges incmTed with respect to the Property, including without limitation all charges for gas, electricity, water, heat, sewage, refuse and other utilities and services furnished to the Prope1ty during the Initial Term.

Maintenance and Repair of the Prope1ty. PAL agrees, throughout the Initial Term, without cost to City, to maintain the Property and the Iniprovements and to keep the same in good order, condition, and repair. PAL shall maintain the property in the same or similar condition as that found at the start of the Lease. City may· impose additional maintenance standards as circumstances require. PAL shall maintain weed control pursuant to timing as directed by the Fire Marshal. Weed control shall be maintained by. mowing, in order to· avoid disturbing possible burrowing owl sites. Other alternative methods of weed control may be used only following written approval by City.PAL shall not allow any litter, garbage and refuse to accumulate, and shall not store anything outside of the strnctures which compromise the Iniprovements. PAL also agrees that PAL shall, at P AL's cost, pr01nptly make all necessary repairs, upgrades and replacements, exterior and interior, structural and non-structural, ordinary as well as extraordinmy, foreseen as well as unforeseen, to keep the Property and the Iniprovements in a safe, clean and sanitary condition and in compliance with all laws. City shall have no obligation to repair, upgrade, replace or maintain any portion of the Property or any Iniprovements thereon or to provide any utilities or access to the Property. If, however, PAL fails to pei'form its obligations under this Section 7, City may, but need not, perfonn such obligations, and PAL shall pay, on demand to City the cost thereof, including a Ground Lease/Santa Clara Police Activities League Page 5 of 16 percentage of the cost thereof sufficient to reimburse City for all overhead, general conditions, fees and other costs or expenses arising from City's perfonnance of obligations. · ·

8. Enny by City. City, and its agents, employees and independent contractors, shall have the right, at all times dming the Initial Tenn and any Extended Tenn, to enter into or upon the Property or any Improvements thereon for any purpose whatsoever, including, without limitation, for purposes of conducting inspections.

9. Assignment and Subletting. PAL may not sublet, or assign, or subordinate this Lease or any interest herein, or otherwise sell, transfer or convey any right, title or interest PAL may have in the Property, without first obtaining the written consent of City, which consent may be given at City's sole and absolute discretion. Any change in P AL's stati1s as a non-profit corporation or in the rights . of its members and any merger or consolidation of PAL with any other entity, (whether in one transaction or as a result ofa . series of transactions) shall constitute an assigmnent by PAL of this Lease for the purposes of this Section 9.

9.1 Consent to Assignment or Subletting. The following infonnation and assuram;es shall be provided to City as part of PAL's request for consent: (a) the name and address of the proposed assignee or sub lessee; (b) a description of the portion of the Property to be transferred; ( c) financial information regarding the proposed assignee or sublessee including a copy of its most recent audited balance sheet and income statement; ( d) the identity, background and experience of all directors, all officers and/or all general partners or other principals or owners of the proposed assignee or sublessee, and the senior operational officer, agent or employee in charge of the Property; and (e) such other information as City may reasonably require.

9.2 Additional Terms. City's approval of or consent to any proposed assignment or subletting shall not be a waiver of any right to object to fu1iher or future assignments or sublets. Before any proposed assignment or subletting can be effective for any purpose under this Lease, the proposed assignee or sublessee must assume in writing the performance of all of the terms, covenants and conditions on the part of PAL to be performed hereunder from and after the date of such assignment or subletting. City may require at its sole discretion future conditions for assignment. No such assignment or subletting shall relieve PAL from its obligations under this Lease.

10. Smrender. Notwithstanding anything to the contra1y contained in this Lease, upon the expiration or earlier termination of this Lease, PAL shall remove any above ground improvements, including removal of the BMX track and earthwork and restore the Prope1iy to a grade and condition compatible with improved conditions and surrender the Prope1iy in good condition and repair. City may at its sole discretion identify specific Improvements, with all fixtures, equipment and appurtenances thereto, which may remain Ground Lease/Santa Clara Police Activities League Page.6 of 16 in place. Any remanllllg Lessee Improvements and the fixtures, equipment and appurtenances thereto shall automatically become the property of City from and after the expiration of the Initial Tem1, free and clear of all claims to or against them by PAL or third parties, and PAL waives all claims for compensation for such Lessee Improveme11ts or the fixtures, equipment and appurtenances thereto and PAL shall hold harmless and defend and indemnify, for City against all claims or liability, arising in cmmection with the Lessee Improvements or from City's exercise of its rights under this Section 10.

11. Default and Remedies.

11.1 Default. The occml'ence of any of the following shall constitute a mateiial default and breach of this Lease by PAL (an "Event of Default"):

11.1.1 Any failure by PAL to pay any Rent or to make any other payment required to be made by PAL hereunder, where such failure continues for five (5) days after w1itten notice thereof by City to PAL.

11.1.2 Abandonment or vacation of the Property at any time during the Lease Te1m.

11.1.3 A failure by PAL to observe and perfonn any other provision of this Lease to be observed or performed by PAL, where such failure continues for ten (10) days after written notice thereof by City to PAL; provided, however, that if the nature of such default is such that ti)e same cannot reasonably be cured within such 10-day period, PAL shall not be dee,ned to be in default if PAL shall, within such period, commence such cure and thereafter diligently prosecute the same to completion.

11.1.4 The making by PAL of any general assignment for' the benefit of creditors; . the filing by or against PAL of a petition to have PAL adjudged bankrupt or of a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against PAL, the same is dismissed within sixty (60) days); the appointment of a tmstee or receiver to take possession of substantially all of P AL's assets located at the Property or of PAL's leasehold estate, where possession is not restored to PAL within sixty (60) days; or the attachment, execution or other judicial seizure of substantially all of PAL's assets located at the Property or of P AL's leasehold estate where such seizure is not discharged within sixty (60) days.

11.1.5 A failure by PAL to accomplish the uses recited 111 paragraph 4.1, Permitted Use.
ll .1.6 A failure by PAL to meet its responsibilities recited in paragraph 4 ( 4.2-

4.8).

Ground Lease/Santa Clara Police Activities League Page 7 of 16

12. 11.2 City's Remedies. Upon the occurrence of any Event of Default hereunder, City shall have the right, in addition to any other lights or remedies City may have, at City's option, without futiher notice or demand of any kind, to tenninate this Lease for cause,.terminate PAL's right to possession of the Property, re-enter the Property, and take possession thereof; and PAL shall have no further 1ight to possession of the Property. Should City elect to so tenninate this Lease, City may recover as damages from PAL for the following:

11.2.1 The w011h at the time of the award of any unpaid Rent which had been earned at the time of termination; plus
_ 11.2.2 Any other amouilt necessmy to compensate City for all detriment proximately caused by P AL's failure to petfonn its obligations tmder this Lease as allowed by applicable law.
"The worth at the time of the award" as used in subsections 11.2.l above is to be computed by allowing interest at the rate often percent (10%) per allllum.

11.3 City shall have the remedy described in California Civil Code Section 1951.4 (Lessor may continue lease in effect after P AL's breach and abandomnent and recover rent· as it becomes due, if PAL has the right to sublet or assign, subject only to reasonable limitations). Accordingly, if City does not elect to terminate this 'Lease on account of any default by PAL, City may, from time to time, without tenninating this Lease, enforce all of its 1ights and remedies under this Lease, including the right to recover all Rent as it becomes due,

11.4 · No Waiver. No waiver by City of any violation or breach of any of the terms, provisions and covenants herein contained shall be deemed or constrned to constitute a waiver of any other or later violation or breach of the same or any other of the tenns, provision, and covenants herein contained. Forbearance by City in enforcement of one or more of the rights or remedies available to City upon a default shall not be deemed or constrned to constitute a waiver of such default. The acceptance of any Rent hereunder by City following the occurrence of any default, whether or not ki1own to City, shall not be deemed a waiver of any such default, except only a default in the payment of the Rent so accepted.

Limitation of Liability, fude1llllity and Waiver of Claims.

12.1 Limitation on City's Liability. City shaUnot be liable to PAL for the satisfaction of any judgment or other award against City related to this Lease to the extent such judgment or award, together with any such prior judgments or awards, exceeds the fair market value of City's interest in Improvements on the Prope11y at the time of the entering ofsuchjudgment or award.

12.2 PAL's Indemnity and Waiver. PAL, as a material part of the consideration to be Ground Lease/Santa Clara Police Activities League Page 8 of 16 . 13.
rendered to City, waives any and all claims against City, its Council, officers, Commissions, agents and. employees for damages by reason of any death of or injtny to any person or persons, including without limitation, PAL, P AL's members, officers, agents, servants, and employees, contractors, guests or third persons in or about the Property or any injmy to property of any kind whatsoever and to whomsoever belonging, including without limitation, property of PAL, arising at any time and from any cause other than by reasoi1 of the gross negligence or willful misconduct of City, its employees or agents. PAL further expressly agrees to indemnify, defend and hold. City, its Council, officers, Commissions, agents and employees, harmless from and against any and all claims and liabilities (including, without limitation, reasonable attorneys' fees, court costs, and investigation costs) c01mected in any way with the condition, use or misuse of the Prope1ty, P AL's property located thereon or the Improvements or any appurtenances thereto, atising at any time ( except to the extent caused by the gross negligence or willful misconduct of City, its employees or agents while in, upon or in any way c01mected with the Property).

12.3 PAL agrees to indemnify defend and hold City, its Council, officers, Commissions, agents and einployees harn1less from and against any and all claims and liabilities (including without limitation Teasonable attorneys' fees, court costs, and interest costs) due to PAL's negligent conduct which has a dettimental effect upon Pacific Energy.

12.4 City's Indenmity. City agrees to indenmify, defend and hold PAL harmless from and against any and all clainrn and liabilities, (including, without limitation, reasonable attorneys' fees, court costs, and investigation costs) to the extent caused by the gross negligence 01' willful misconduct of City, its employees or agents, while in, upon, or in any way connected with the Property.

Insurance Requirements.

Tlnoughout the te1m of this Lease, PAL, at its sole cost, shall maintain in full force and effect insurance policies with such coverage as set fotih in Exhibit C, attached hereto and incorporated herein by reference.

14. Damage or Destruction.

14.1. PAL's Obligation to Restore. In case of damage to or destruction of the In1provements, or any pait thereof, by fire or other cause, PAL, at P AL's sole cost and expense shall restore the same as nearly as reasonably possible to their value, condition and character inmlediately prior to such damage or destruction. Such restoration shall be commenced and prosecuted with due diligence and in good faith. In case of damage to or destruction of the Iniprovements by fire or other cause, PAL shall immediately give written notice thereof to City.

Ground Lease/Santa Clara Police Activities League Page 9 of 16

14.2 Application ofinsurance Proceeds. All insurance money paid as provided herein on account of any damage or destrnction shall be applied to the payment of the costs of restoration, repairs, replacement, rebuilding or alterations, including without limitation the costs of the demolition, temporary repairs and for the protection of the Property pending completion of permanent restoration, repairs, replacement, rebuilding or alterations ( collectively, the "Restoration"). All such insurance proceeds shall be used for the Restoration until such Restoration is complete. If the insurance money, less the actual costs, fees and expenses, if any, incimed by City or PAL in com1ection with the adjustment of the loss (the "Net Insurance Proceeds"), shall be insufficient, as shown by contractors' bids, to pay · or secure payp1ent of the entire cost of such Restoration, PAL shall arrange to pay . or secure payment of the deficiency prior to commencement or continuation of construction by cash, perfonnance or surety bond, letter of credit, loan commitment or other means; provided, however, that such other means shall be to City's reasonable satisfaction. Additionally, if the estimated cost of such Restoration exceeds the Net Insurance Proceeds by either five percent (5%) of the then market value of the Improvements at the time of such Restoration, City may require PAL, at PAL's sole cost and expense, to furnish City with a perfo1mance bond and surety bond or other assurances of completion as shall be satisfact01y to City. Upon the completion and payment in full of the Restoration and expiration of all applicable lien periods, and so long as there is no default under the temrn, conditions, covenants and agreements of this Lease, any balance of the insurance proceeds remaining to be paid shall be paid to PAL.

14.3 No Release of PAL's Obligations. No destrnction of, or damage to the Property or ai1y part thereof by fire or any other cause shall relieve PAL from its obligations to pay the full Rent payable under this Lease or from any of its other obligations under this Lease, and PAL waives any rights now or hereafter confen-ed upon it by statute or otherwise with respect to .any suspension, diminution, abatement or reduction of Rent or P AL's obligations under this Lease on account of any such destruction or damage.

15. Condellll1ation.

15.1 · Permanent Taking. If, during the Initial Term, there shall be a permanent taking or condellll1ation of all or any part of the Property under the power of eminent . domain, or if City shall grant a deed or other instmment in lieu of such taking by eminent domain or condemnation, then P AL's leasehold estate in the event of a total taking, or the portion thereof taken in the event of a pmiial taking, shall cease and terminate as of the date of taking. If PAL's leasehold estate is so te1minated in whole or in part, all Rent and other changes payable by PAL to City hereunder attributable to the Property, or portion thereof taken, shall be paid by PAL up to and prorated through the date of the taking. All compensation and damages awarded in connection with any taking of the Property shall be paid to City. In the event of a partial taking, this Lease shall continue in full force and effect· Ground Lease/Santa Clara Police Activities League Page 10 of 16 notwithstanding such patiial taking. PAL shall be paid the value of its improvements in the event of a pe1manent taking.

15.2 Tempora1y Taking. If all or any portion of the Property shall be taken by any competent authority for temporary use or occupancy (a "Temporary Taking"), this Lease shall continue in full force and effect without reduction or abatement of Rent, notwithstanding any other provision of this Lease, statute or rule of law to the contra1y. City shall, in such event, be entitled to any award made as a result of such Temporary Taking with the exception of any award attributable to PAL's improvements.

16. Alterations.

16.1 City's Consent to Alterations Required. Notwithstanding anything to the contra1y contained in this Lease, PAL . may not make any improvements, alterations, additions or changes to the Property, including, without limitation, grading, moving soil, storing soil, building any new building, structure or improvement of any kind on or about the Prope1iy, without the prior written consent of City to any Alterations, which consent may be withheld in City's sole discretion. At any time PAL proppses to make Alterations which require the consent of City pui·suant to this Section 16, PAL's request for consent to the proposed Alterations shall include all of the plans and specifications for the Alterations, and City shall approve or disapprove of the same within a reasonable time period. This clause is not intended to address the City's n01mal land use, permitting, and entitlement process.

16.2 Manner of Coustruction. As a condition of its consent to any Alterations or repairs to the Prope1iy or the Improvements, City may impose such requirements as City in its sole discretion may deem desirable, including, but not limited to: (a) the requirement that upon City's request, PAL shall, at PAL's expense, remove such Alterations upon the expiration or any eady termination of the Initial Term; (b) the requirement that PAL utilize for such purposes only contractors, materials, mechanics and materialmen approved by City (which approval shall not be unreasonably withheld); and/or (c) the requirement that PAL provide to the City a bond for the faithful perfonnance of tlie Alterations. PAL shall construct such Alterations and perform such repairs in confo1mance with any and all applicable rules and regulations of any federal, state, county or municipal code or ordinance and pursuant to a valid building pennit. City's · approval of the plans, specifications and working drawings for PAL' s Alterations shall create no responsibility or liability on the part of City for their completeness, design sufficiency, or compliance with all laws, rules and regulations of govennnental agencies or authorities. All work. with respect to any Alterations must be done in a good and workmanlike manner and diligently prosecuted to completion. Upon completion of any Alterations, PAL agrees to cause a Notice of Completion to be Ground Lease/Santa Clara Police Activities League Page 11 of 16

17. 18.
recorded in the office of the Recorder of the County of Santa Clara in accordance with Section 3093 of the Civil Code of the State of California or any successor statute, and PAL shall deliver to City a reproducible copy of the "as built" drawings of the Alterations.

16.3 Payment for Alterations. Upon completion of such work, PAL shall deliver to City, evidence of payment, contractors' affidavits and full and final waivers of all liens for labor, services or matelials. PAL shall pay to City a percentage of the cost of such work sufficient to compensate City for all overhead, general . conditions, fees and other costs and expenses mising from City'~ involvement with such work. This payment shall be in addition to any pemlit and fees required by the City's nonnal land use, permit and entitlement process. PAL shall indemnify, defend and hold City hannless from any claims or liability in any manner relating to the installation, placement, removal or financing of any such Alterations, improvements, fixtures and/or equipment in, on or about the Property.

Quiet Enjoyment. As long as PAL observes all of the tem1s and conditions of this Lease, it shall peaceably hold and e1tjoy the Property, and any and all other rights granted by this Lease for the Initial Te1m and any Extended Term without hindrance or intenuption by City or any other person or persons claiming by, through or under City except as provided in t!J..is Lease.

Estoppel Certificate. · PAL shall at any time and from time to time upon not less than ten (10) days' prior written notice from City, execute, apknowledge and deliver· to City a statement (a) certifying that this Lease is unmodified at1d in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force and effect) and the dates to which the rental and other charges are paid in advance, if any; and (b) acknowledging that there are not, to PAL's knowledge, any uncured defaults on the pmt of City, or specifying such defaults if any are claimed. Any such statement may be relied upon by any prospective purchaser or encumbrancer of all or any portion of the Property or the real prope1ty of wllich the Property are a part. PAL's failure to deliver such statement to City as required above shall be deemed to constitute P AL's agreement (i) that this Lease is in full force and effect, without modification except as may be represented by City and (ii) that there are no uncured defaults in City's performance. _
Ground Lease/Santa Clara· Police Activities League Page 12 of 16

19. Holding Over. PAL shall not hold over on the Property after the expiration or sooner termination of the Initial Tem1 or any Extended Tenn. In the event PAL shall not innnediately surrender the Property on the date of expiration or sooner tennination of the Initial Tenn, in addition to any other rights and remedies of City hereunder or at law or in equity, PAL shall pay to City for each month or potiion thereof dming which PAL holds over on the Property a sum equal to the prorated Rent for the Property, as detetmined pursuant to the Section 5 hereof, in addition to all other Rent due under this Lease. If any tenancy is created by PAL's holding over in the Propetiy, the tenancy shall be on all the tetms and conditions of this Lease, except that rental and the tenancy shall be a month-tomonth tenancy, tem1inable on thirty (30) days' notice by either patiy to the other.

Nothing in this Section 18 shall be deemed to permit PAL to retain possession of the Propetiy after the expiration or sooner tennination of the hlitial Term or any Extended Tetm.

20. Notice.

20. l Wtiting. All notices must be in writing. ·

20.2 Delivety. Notice is considered given either (a) when delivered in person to the recipient named below, or (b) if sent by telex or telecopy, when sent, or (c) tln·ee (3) business days after deposit in the United States mail in a sealed envelope or container, postage and postal charges prepaid, addressed by name and addressed to the party or person intended as follows:

Notice to City:

City of Santa Clara
Office of the Clerk
Attention Deputy Director of Public Works
1500 Warburton Avenue
Santa Clara, CA 95050
Notice to PAL:

President

SANT A CLARA POLICE ACTIVITIES LEAGUE
1541 Civic Center Drive
Santa Clara, CA 95050

20.3 Change of Recipient or Address. Either party may, by notice given at any time or from time to time, require subsequent notices to be given to another individual person, whether a party or an officer or representative, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change.

Ground Lease/Santa Clara Police Activities League Page 13 of 16

21. 22.

23. 24.

25. 26.

27. 28.

29. Burrowing Owls. City is unable to specify at this time the nature, extent or conditions of Burrowing Owl mitigation, but it may be anticipated that the area immediately adjacent to the Property may be utilized for Burrowing Owl mitigation.

Interest. If PAL shall fail to pay, within thirty (30) days after due and payable, any Rent or other amounts or charges which PAL is obligated to pay under the te1ms of this Lease, provided that PAL has been notified in w1iting that such charges ( other than Rent) are due, such unpaid amounts shall bear interest at the rate equal to ten percent ( 10%) per annum.

Fmther Assurance. The parties hereto shall at all times hereafter execute any documents, provide information reasonably requested and do any further acts which may be necessaiy or desirable to cany out the purposes of this Lease and to give full force and effect to each and all of the provisions thereof. The parties shall deal fairly with each other and shall conduct their activities hereunder in good faith.

Unused Slope Area. PAL acknowledges that there will be unused slope area included in the Prope11y for the purpose of fencing and other topographic needs. PAL agrees to maintain this area_by mowing or other appropriate weed control as approved by the City in wiiting. PAL shall maintain this area as directed by the Deputy Director of Public Works.PAL shall not use the slope area around the facility for any pmpose.

Severability. If any tenn or provision of this Lease, or the application thereof to any person or circumstance shall, to any extent, be determined by judicial order or decision to be invalid or unenforceable, the remainder of this Lease or the application of such te1m or provision to persons or circumstances other than those as to which it is held to be ·invalid or unenforceable shall not be affected thereby, and each tenn and provision of this Lease shall be valid and shall be enforced to the fullest extent pennitted by law.

Governing Law. This Lease shall be governed by and constrned in accordance with the laws of the State of California and all comi actions filed in the state court in Santa Clara County.

Article and Paragraph Headings. The paragraph headings herein are inse1ied only for convenience of reference and shall in no. way define, limit or describe the scope or intent of any provision of this Lease.

Entire Agreement. This Lease shall constitute the entire agreement between the parties and supersedes all other plior writings and understandings. This Agreement shall not be modified or amended in any way except by an instrument signed by PAL and City.

Effect of Termination. Notwithstanding any other provision of this Lease to the contrary, any termination of this Lease pursuant to the tenns hereof shall not relieve either party from any liabilities, obligations or indemnities arising plior to the effective date of such tennination.

Ground Lease/Santa Clara Police Activities League Page 14of16 '

30. Time of Essence.· Time is of the essence for the perfo1mance of each provision of this Lease.

31. No Waiver. No waiver by either party of any provision of this Lease shall be deemed to be a waiver of any other provision hereof or of any subsequent breach by the other party.

32. Duplicate Originals. This Lease may be executed in any number of duplicate miginals, each of which shall be deemed an original when fully executed by the parties hereto.

33. · Authority. The signatories hereto warrant that each has the Authority to execute this Lease on behalf of City and PAL, respectively. ·
[THE REMAJNDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Ground Lease/Santa Clara Police Activities League Page 15 of 16

34. Successors and Assigns. This Lease shall be binding upon and shall inure to the benefit of the successors and assigns of City and PAL.

THE PARTIES hereby indicate their acknowledgment and acceptance of the tenns and conditions stated in this Lease by the following signatures of their duly authorized representatives. It fa the intent of the Parties that this Lease shall be effective as of the day and year first indicated above.

CITY OF SANTA CLARA, CALIFORNIA
a chartered California municipal corporation
APPROVED AS TO FORM:
.BAUM NNIF SP INO
i;Manager
ATTEST:
itJvwMUd- &~
1500 Warbmion Avenue
Santa Clara, CA 95050
Telephone: (408) 984-3100
f},rz,,-1. E. BOCCIGNONE Facsimile: (408) 241-6771
-zy" City Clerk
"CITY"

SANTA CLARA POLICE ACTIVITIES LEAGUE
I:IDATAI\VPIGARY\PALS-8-25-98 10:00 a.m.
7 resident, PAL Board of Directors
1541 Civic Center Drive
Santa Clara, CA 95050
Telephone: ( 408) 236-3987
Facsimile: (408) 246-5961
"PAL"
Ground Lease/Santa Clara Police Activities League Page 16 of 16

GROUND LEASE

BETWEEN THE CITY OF SANTA CLARA
AND
. SANTA CLARA POLICE ACTIVITIES LEAGUE
EXHIBIT "A"
Description of Property:
that certain real property owned by the City and located in the City of Santa Clara, consisting of ± 12 acres more or less of closed landfill as shown in the attached drawing. Following completion of the BMX bicycle track facility, the City Engineer shall cause the site to be surveyed and that meter and bounds survey shall replace that presently attached hereto. [for purposes of this draft please see the Exhibit A from the Memorandum of Understanding by and between the City of Santa Clara,· California and the Santa Clara Police Activities League, attached]
EXHIBIT A Page 1
. EXI-IIBIT "A"

LEGAL DESCRIPTION
(P ALIB:MX SITE)
A po1iion of Parcel 1 and Parcel 2 as described in that Grant Deed filed for record in Book 9092 of Official Records, at Page 80, Santa Clara County Records, being more pmiicularly described as follows;
Beginning at a point in the easterly line of Lafayette Street as shown on that Record of Survey filed for record in Book 339 of Maps, at Pages 6 tln·ough 9, said County Records, said point being the southerly terminus of that 600 foot radius curve as. shown on said Record of Survey;
Thence, from said Point of Begim1ing, along said easterly line, from a tangent bearing of North 28° 24' 33" West, no1iherly along the arc of a curve to the right, having a radius of · 600 feet, through a central angle of21 ° 47' 07", and an arc length of228.13 feet; Thence, continuing along s.aid easterly line, North 6° 37' 26" West, 288.55 feet; Thence, leaving said easterly line, No1ih 61 ° 41' 37" East, 386.08 feet; Thence, South 28° 08' 00" East, 377.82 feet;
Thence, South 60° 54' 14" East, 343.75 feet;
Thence, South 28° 54' 19" East, 338.47 feet;
Thence, South 36° 20' 51" \\Test, 205.42_feet;
Thence, South 87° 25' 49" West, 169.69 feet; ·
Thence, North 49° 22' 53" West, 152.50 feet;
Thence, North 70° 25' 39" West, 92.82 feet;
Thence, South 61 ° 04' 38" West, 266.58 feet to said easterly line of Lafayette Street; Thence, along said easterly line, North 28° 24' 33" West, 320.95 feet to the Point of Beginning; and,
Containing an area of 12 acres, more or less,
I:\ENGINEERING\DRAFI\\VP\LPD\DOC\PAL BMX LEGAL DESCRIPTION.doc 8-25-98

EXHIBIT

LOCATION MAP
NTS
1:\ENGINEER\ORAFT\CAO\LPO\NELSON\plol ol bmx sile.ll'/,\; ' '
°' \
·~
8 (}
+ + + + + + + + + + ++·++++++++ (+++ ++++
~ +++ ++++ ++++
L3
LINE TABLE:

LINE BEARING DISTANCE
Ll N 70°25'39" W 92.82'
L2 s 61°04'38" w 266.58'
L3 S 87°25'49" W 169.69'
L4 N 49°22'53" W 152.50'
L5 s 36°20'51" w 205.42'
CURVE TABLE:

CURVE RADIUS DELTA
Cl 600.00' 21'47'07"
LENGTH
228.13'
µD=rov"-'-'-m----""-=-------'-N"'--D --f-----"8----=--2"----5-=98'------+-C-=---J::...cT=---Y-=------=Q---=F'------S~A:.::...N.::._.:T=----:A=--=----=C-=L=A=R=A=-=+S=-coc-'l1_" =--=-.:20=-----JO' 0 ; Date PLAT TO ACCOMPANY LEGAL DESCRIPTION Rel. g
BRUCE C. AUGASON (PAL/BMX SITE) f--T-ro-c-in_g_N_o_.--1:J, DPW CITY ENGINEER E/0 LAFAYETTE, S/0 YERBA BUENA WAY 10,806-A EXHIBIT 11B11
FIRST AMENDMENT TO:

LEASE AND OPEIV\TING AGREEMENT

FOR LANDFILL GAS CONVERSION SYSTEMS
[Santa Clara Landfill]
THIS FIRST AMENDMENT TO LEASE AND OPERA.TING AGREEMENT FOR LANDFILL GAS CONVERSION SYSTEMS (the "Amendment") is made on this ___f_ day of ~-127.=~d~~~L~j~~' 1988 by and amo~g the City of Santa Clara,· corporation ( 11 Lessor") ; Santa Clara Reclamation a municipal Corporation, a California nonprofit corporation ( "Santa Clara Reclamation"); Santa Clara. Land Fill Corporation, a California nonprofit corporation ("Santa Clara Land Fill"); All Purpose Landfill Company, a California partnership (the "Operator") ; and Pacific Energy (formerly Pacific Lighting Energy systems), a California corporation ("Lessee"), i•1ith reference to the following facts:

A. Lessor, Santa Clara Reclamation, Santa Clara Land Fill, Operator [hereinafter sometimes collectively referred to as "Site Operators" J and· Cambrian Energy Systems (Lessee's predecessor in interest}, previously entered into that certain Lease and Operating Agreement for Landfill Gas Conversion Systems dated June 27, 1984 (the "Original Lease").

B. Initially capitalized terms used in this Amendment.have the meaning assigned in the origina L Lease unless separately defined herein.

C. Because of numerous minor operati;.,g. shutdowns which have the existing Conversion System operating approximately eighty-five percent (85%) of the time, Lessor now desires to·have Lessee design, 1 First Amendment
procure, construct, operate, and maintain a Flare System at the Premises ·in order to avoid fines and repeated variance applications to the Bay Area Air Quality Management District ["BAAQMD"J.

D. Under the Original Lease, Lessee had no obligation to design, procure, construct, operate, and maintain a .Flare system at the Premises, but Lessee is willing to - do so provided that the · Lessor reimburses Lessee for Lessee's cost of design, procurement, construction, operation, and maintenance of the Flare System and indemnifies Lessee for such design, procurement, construction, operation, and maintenance .
. NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree that the original Lease is hereby amended in the following respects:.

1. As used in this Amendment, the following terms shall have the meaning set forth below:

1.1 Lessee's Cost means those co~ts described in
Exhibit A.

1.2 Flare System means the flare or flares, including any temporary flares, installed by Lessee to burn landfill gas operated in conjunction with the Project, including any necessary .blowers, piping, valves, control systems, or other equipment necessary for the operation of the flares.

1.3 Services means all of the design, engineering,
procurement, construction, installation, management, operating and maintenance services' provided by Lessee for the benefit of the Lessor pursuant to this Amendment.
2 First Amendment

2. The Lessor has been directed by BAAQMD to have the Flare system fully operational by October 31, 1988 or sooner. Lessee shall endeavor with due diligence to comply with this construction schedule.

Lessee agrees to design, procure, and construct, or cause to be designed, procured, and constructed using the reasonable engineering· judgment of Lessee or a qualified engineering firm retained. by ·Lessee, a Flare system. The plans and specifications of the Flare system shall be submitted to and approved by the Lessor or its designated representative prior to the installation of the Flare System. The approval or disapproval of any such design submitted to Lessor by Lessee shall be communicated to Lessee within ten working days from the receipt thereof by Lessor. Lessee shall be paid an amount equal to the installed cost of the design and installation of such Flare System pursuant to section 4 below.

3. Following the installation of the Flare System, Lessee will operate the Flare System and may modify the Flare System in any manner determined to be necessary or advantageous by Lessee in order to integrate the Lessor's Flare system or any portion thereof with the Project previously installed by Lessee. Lessee shall have full authority to repair, maintain, operate, relocate, and replace the Flare System as reasonably deemed necessary for the safe and continuous operation of the Project and Flare System. Lessee s.hall be paid an amount equal to Lessee's Cost for such operation, maintenance, repair, relocation, and replacement pursuant to section 4 below.
3 First Amendment
4 • Lessee shall provide to Lessor, invoices or other
satisfactory accounting evidence of Lessee's Costs of the design, procurement, construction, operation, and maintenance of the Flare System. Lessor, through its authorized employees, representatives, or agents, shall have the right, at any and all reasonable times, to audit the books and records of Lessee for the purpose of verifying any and all charges made by Lessee in connection with the charges pertaining to the Flare system. Lessee shall maintain sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to Lessor.

Lessee shall be paid Lessee's Costs through a deduction from, or offset against, all royalties which would otherwise be payable to Lessor under the · terms of the original Lease and if such monthly royalties are insufficient to pay Lessee's Cost for that month (as is. likely to be the .case during design, procurement, and construction), then Lessee will bill and Lessor shall pay the amount not paid through deduction from, or offset against, royalties.

Amounts not paid within thirty (30) days of billing will incur interest at a rate of ten percent (10%) per annum.

In · no event shall the amount payable to Lessee from Lessor exceed $150,000.00 for expenses associated with the design and construction of _the Flare system without Lessee requesting Lessor for written authority to expend more than $150,000.00 for such design and construction.

5. It is agreed by the Parties that the duties undertaken 4 First Amendment
under this Agreement by Lessee are undertaken as an accommodation to Lessor and shall not in any way create a liability .for Lessee for air emissions or migration of landfill gas. Such liability shall remain with Lessor. Lessor hereby agrees to defend, indemnify and hold Lessee harmless for any such liability for or related to said air emissions or migration of landfill gas and operation and maintenance of.the Flare system.

6. The provisions of Section 8. 2 (entitled "Liability
Insurance"] of· the Original Lease ·are expressly applicable to. the Flare System. Any extra cost associated with inclusion of coverage of the Flare System shall be paid by Lessor pursuant to section 4 above.

7. Under no circumstances shall Lessee have the authority or power to pledge the credit of Site Operators or incur any obligation in the name of site Operators, or any one of them.
8, The Flare system shall become the property of Lessor after full payment has been made to Lessee for design and construction costs. The provisions pertaining to the operation and maintenance oY the Flare system are terminable by either Lessor or Lessee on thirty (30) day's written notice without cause or recourse.

However, upon such termination,. Lessor shall assume the responsibility for the operation and maintenance of the Flare System and said operation and maintenance shall not interfere with Lessee's operation an_d maintenance of the Collection System and conversion System as provided in the original Lease. It is further understood that upon such termination, Lessor shall have no right to utilize 5 First Amendment
any portion of Lessee's P.roject for the operation and maintenance of the Flare system without written permission by Lessee.

9. Except as amended hereby, all P.rovisions of the Original Lease shall remain · in full force and effect without impairment or modification.

10. This Arnendment shall become effective on the date first written above upon the execution and delivery of this Arnendment by the Parties.

LESSOR: CITY op· SANTA CLARA
p-et;;~AJ . Q ''" ¥ ..__/
Title: Mayor
---=--------------
APPROVED AS TO·FORM:

By = 111wlw G Q o tu (,1J_;
Title: 1\isd,w./ city Attorney ~
LESSEE: PACIFIC ENERGY,
a California corporation
. .c:>1/ j By: ,-'-.,~/)/fk .-/
. ==-~
Title: Senior Vice President
6 First Arnendment
SANTA CLARA LANDFILL: SANTA CLARA LAND FILL CORPORATION Title:_--,L__.Ll.=cLL ________ _
SANTA CLARA RECLAMATION: SANTA CLARA.RECLAMATION CORPORATION a ....__ - By: ,k::'.&-1 J6i g~=-c,"?-,U,fc~
.Title : __ 1-/--/?_-~~·==--' _______ _
OPERATOR:
7 First Amendment

EXHIBIT A
Lessee's Cost shall include:

1. Wages and Salaries. The actual cost to Lessee_
of wages and salaries for such time as --is devoted to the Services by employees of Lessee, other than executive officers of Lessee, including, but not limited to, field managers, administrators,_ accountants and tax advisors, supervisors, engineers, buyers, exp.edi ter, inspectors, technicians, mechanics, electricians, yardmen, laborers, secretaries, stenographers, clerks and others, for Services, plus an allowance of sixty-five percent (65%) for such wages and salaries as compensation to Lessee for the cost of payroll insurance and taxes (e.g., Worker's Compensation Insurance, FICA, SDI, SUI, and FUI), holidays, vacations, group medical and life insurance, salary continuation bonuses and other employee benefits and indirect overhead costs.
2 • Direct Costs including:
(a) General Expenses. The actual cost of
equipment, supplies and services necessary for performance of the Services including office furnishings (excluding those for home office use), equipment, materials and supplies, communication equipment and services, electric service, gas service, water service, postage and freight, utilities, building maintenance services, security, administrative vehicles and operating expenses, independent consultlng services, safety equipment and apparel, and all similar expenses.
(b) Flare system Design, Procurement and
Construction Expenses. The actual cost of equipment, materials, supplies and services purchased by Lessee as required for the · design, procurement and construction of the Flare System, including but not limited to engineering, fees, permits, material and equipment, testing; and any assignments, delegations or subcontracts necessary or appropriate for performance of the services ..
(c) Flare system Operating Expenses. The
actual cost of equipment, materials, supplies and services purchased and stored at the Premises by Lessee·as required for the operation of the Flare system; including shop and yard equipment, special and small tools, test equipment, lubricants, chemicals and all consumables; and any assignments, delegation·s or subcontracts necessary or appropriate for performance of the Services.
(d) Flare System Maintenance Expenses. The
actual cost of equipment, materials, supplies and services purchased by Lessee as required to carry out maintenance for the Flare system including spare parts; special capital tools; and any assignments, delegation or subcontracts necessary or appropriate for perfonnance of the Services.
( e) Communication Expenses. The actual cost of
postage, long distance telephone, telecopy, leased lines, computer links.and simiiar items necessary to performance of·the S0rvicos.
( f) Rentals. The actual cost of all rentals
necessary for the performance of the Services paid by Lessee (excluding those for home office use).
(g) Contract Services. The cost of contract
services provided by persons other than Lessee, including without limitation, the cost of utilities, and use and·services of vehicles, equipment and facilities furnished by Lessee necessary for the performance of the services.
(h) Transportation, ·Travel and Relocation·
Expenses. The actual cost of transportation, travel and relocation expense for employees directly engaged in performance of the Services.
( i) Insurance. Net of any returns, refunds, or
dividends, the actual cost of all premiums paid and expenses incurred for insurance covering the Flare Systems.
(j) Taxes. The actual cost of all taxes
(except those measu~ed by income) of every kind and nature assessed or levied upon or incurred in connection with the Services or on the Flare System.
(k)" Regulatory Compliance. The actual cost of
compliance with governmental regulatory·acts, laws or executive orders, including the cost of monitoring and reporting imposed on the Flare system pursuant to such laws and the cost of any citation, penalty or liability that may be imposed as a result of any violation in connection with the Services or on the Flare System.
(1) Legal Expenses and Claims. The actual cost
of all expenses of handling, investigating and settling litigation or claims arising by reason of the Services or necessary to protect or recover any property related to the Flare system, including, but not limited to,· attorney's fees of retained counsel, court costs, costs of investigation and procuring evidence, and any judgments paid or amounts paid in settlement or satisfaction of any such.litigation or claims. (m) Other Costs. The actual cost of all other
ordinary and reasonable direct costs incurred in connection with performance of the Services.

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BAY AREA AIR QUALITY

MANAGEMENT DISTRICT
City of S:mtn Clara
Street Dept. City H::il!
1500 W:irburcon Ave.

S:intn CJ:ir:i, CA. 95050
Attention: Richard J. Mauck
G<!ntlemen:

November 2, 198S

RECEIVED
/./OV 1 4 1988
Street Oept.

City ct Santii CL1e1
Applicncion Number. 1345
Equipment Loc::icion:

S:inta Cl:lra Landfil!
5401 Laf:lyette
Sant:i Cl:ira, CA. 9-IOS--1
Attached is your Permit to Operate the following:

S-1 Land[i\! G:is Flo.re M:inufactured by Custom Combustion Enginccdng--10 x 106 Btu/Hr.
. .;ii P~=:-:1it5 s1";ouhi be po$teti in a de:1rly visible and accessible pl:lce on or near the equipment to be op.:rated, or kept av::i.i!!lble ~or inspection at any time.

Oper:.uion of this equipment in violation of District Regulations or :iny permit conditions is subject to penalty action.
in the absence of specific permit conditions to the contr:iry, the th,roughputs. ft1ct and m::nerial consumptions, capacities :ind hours of operution described in your permit upplic::ition will be considered maximum allow::ible limits. A new permit will be required before any incre:lSe· in these pn.r::i.meters, or change 1n raw m:iterial handled may be: made.

Please include your permit number with any correspondence with the District. If you ho.ve any questions on this matter, please call Permit Services Division nt (4 IS) 771-6000, e."tension 261.

CSU:rmn
Very truly yours,
Mlllon Feldstein
Air Po!lurion Control Onicer
by Att. t1/ ·flt'-4;HQ?c,, Pcijuc ~erv1t:eS 1v1.s1on
'/J<I El.LIS STREET • S,\\ fR,\\TISCO. C1\l.lFOR:-.'IA.941r)Q • (4151_771-M0D [] .. ,
-~) ~F
•• 1:..;.·,•

BAY AREA AIR QUALITY MANAGEMENT DISTRICT
rORM P !Ol
: ·=
PEAMlTTO OPERATE NO. 1345
PLANT NO. 3<--16..f
City or Snnta Clnrn
I
IS HEREBY GRANTED A PERM!! TO OPERATE THE FOLLOWING EQUIPMENT: SOURCE NO. __ S-1 L::mdlill Gas' Flare Manufactured by Custom Combustion Engineering 40 x 106 Btu/Hr.

S~Ol L:ifayette LOCATED AT: ____________________________ _ Snnta CJ:i.r:i., CA. 9405~
CONQ!TIONS: e;;: YES O NO
l.

2. 3.
'·

5. DATE
Under no circumst.:inccs shall l:rndl"ill g:is be vented to thc atmosphere:.

TIils narc shall opcr.itc :it :ill llmd when the cnclnc/i;cncr.,,tor !s down.

TI1c C!ty or Sant:l Clar.i shall ::ipp!y for.:,. d1:1ni;c In permit conditions if the n::irc is to be usd on mon: th:m a s1:mdby basis.

In the event 1J1e engine at Ibis facility is rcmovcll :ind tl1c nan: !s to be used full time, the Clty of $::,.nt.:i C!:ir:i shall first perform ::i source test to determined NOx :ind CO emissions and proYidc !he District \lith appropriate modelling d:ita to verify compliance with ambient air sl:i.ndards. · Tiic City (lr S:int.:i Cl:ir.i sh:ill :i.pply for :i ch:incc in permit conditions to the c:i.s collection sy~/ lfthe number of wells :in: incre:ise:i! this 1:indl"ill in existing fill. NJ :ipplic:itlon for :i modinc:iti to the g:is colleetloa system sh:i!I be m:idc for Increased number ofm:lls in new rm.

Mil TON FELDSTEIN

AIR POLLUTION CONTROL OFFICER
November 2, 196S
EXPIRATION DATE November 2, 19S9 BY J·4J3rf~-,o-N __ _

THIS PERMIT DOES NOT AUTHORIZE ANY VIOLATION OF THE RULES ANO REGULATIONS OF THE BAAQMD OR THE HEALTH & SAFETY CODE OF THE STATE OF CALIFORNIA. [ "<\:]··> i -~ ----\~ ·•?
ALA/l.1EO.:. C:'.lUNTY
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Snot,oy J. Ca'T>t>t'<'II
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Chuc• C.::,"c~
Fr•n• H. C~a"'o
CONTRA COS":',.,_ COUNTY
Poul L. Coocer Sunn• Wn9n1 ).lcPool<

11.1Ai::.1N CCUNTY
Al Al•tr-:Outu
NAP;,.. COUNTY
M•ro•d I. Mc•"°"'""
SAN tA;,..NCISCO COUNTY
l-l•"Y G B'11l
J•m Go~:•IU
$AN MATEC COUNTY
Cu• J N,co•oou•o, Mn• !;.,noo
SA,...,T,.,_ C\,.Af';,.. COUNTY
AO<l Omoon J'!Jlon P Oeo1,cn, Sr
1C~o••:•••oni Aooono H J,<,.~non
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Holon !! -",ve~•
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BAY AREA AIR QUALITY

MANAGEMENT DISTRICT
September 27, 19S3
City of Santa Clara
Street Dept. City Hall q_~, %~k
1500 Warburton AYe. / u> ?"o Santa. Cla.ra, CA. 95050 "'-"".,,. '&.

Attention: Richard J.1\fauck o/ {. .ti" o'n .,~:¢1.' V" '••
Gentlemen:

Application Number: 1345
Equipment Location:

Santa Clara Landfill
5-101 Lafayette
S::i.nta Clara, CA. 94054
This is your Authority to Construct the following:

S-1 Landfill Gas Flarg M::mufactured by Custom Combustion Engineering, 40 x 10 Bt~/Hr.

Operation of this equipment ;.,,ill be subject to the following specific conditions:

1. Under no circumstances shall landfill gas be ·vented to the atmosphere.

2. This flare shall operate at all times when the engine/generator is down.

3. 4.

5. Notilic:ition
The City of Santa. Clara. shall apply for a change in permit conditions if the narc is to be used on. more than a standby bnsis.

In the event the engine at this facility is removed and the Oare is to be used full time, the City of Sant;-i Clara shall first perform a source test to determined NO,: and CO emissions and provide the District with appropriate modelling data to verify compliance with ambient air standards.

The City or Santa Clara shall apply for a change in permit conditions to the gas collection system if the number or wells are increase ::i.t this bndfill in existing fill. An application for a modification to the _gas collection system shall be made for increased number of wells in new !ill.

Please notify the District by letter at least three days before the in.itia\ opero.tion of the equipment is to take place so that we may observe the equipment in operation and verify conformance with the Authority to Construct Opero.tion includes any start•up of the source for testing or other purposes. Operation of equipment without prior written notification to the District or beyond the start• up period without a P_ermit to Operate may result in enforcement action. 939 ELLIS ~TREET • SA:-; FRA:'\ClSCO. CALJFOR:--:!A 94!09 • (415) 771-6000 Richard J. Mauck
City of Santa Cl:lra
Application #1345
September 27, 1988
Sr:'lrt•UP Period
After receipt or the start-up letter required above, this Authority to Constri',..'.- authorizes operation during the start•up period from the date of initial oper:_ :·. noted in your start·up letter· until the Permit to Operate is issued, up t.. • .:.:
maximum of 60 days. All conditions (specific or implied) or the Authority to Construct are in effect during the start-up period.

Elli
District Regulation 3 requires a fee for each new Permit to Or.crate. You will be invoiced upon receipl of your start-up letter. No perm.its mil be issued until all outstanding fees are paid.

Jmplied Conditions
In the absence of°specific permit conditions to the contrary, the throughputs, fuel. and material consumptions, capacities, and hours of operation described in your permit application will be considered maximum allowable limits. A new. permit will be required before any increase in these parameters, or change 1n raw material handled, may be made.

Exnirnfion , In accordance with Regulation 2-1-407, this Authority to Construct expires two years from the date of issuance unless substantial use of the authoricy has begun.

Correspondence
Please include your application number with any correspondence with .. District regarding this matter. lf you have any questions on this matter, ple:.i::.~ call Craig S. Ullery, Air Quality Engineer at (415) 771•6000, extension 261.

CSU:rnm
Very truly yours,
Milton Feldstein
Afr Pollution Control Officer
by~erv~

THE CITY OF SANTA CLARA

CALIFORNIA
Nr, Craig• S. Ullery
Air Quality Engineer II
Permits Services Division
August 15, 1988
BAY ARE4 AIR QUALITY NANAGEMENT DISTRICT
939 Ellis Street
San Francisco, California · 94109
Dear Craig:

STREET DEPT.

CITY HALL
1500 WARBURTON AVE.

SANTA CLARA. CA. 95050
{408) 984-3151
This letter is in response to your letter of July 25, 1988 which concerns our application for Authority to Construct,
Itein 1: I am aware the standby landfill gas flare is to be designed to process the landfill gas generated at our site. A more detailed analysis of our site is enclosed, In. summary, I feel the design flor-1 rate of 1,200 cfm used for the design ·of the flare is justified, The flare also was sized to handle at least the equivaient capacity of the. LFG conversion facility.

Item 2: The process flow diagram indicates an an·ticipated landfill gas flow rate.

The 10-inch leader pipe is the same size diameter as the landfill gas 'collection system pipeline leading from· the collection field into the landfill gas recovery system facility. A 10-inch diameter pipe is sized adequately to handle the landfill gas flows rate from the site, Item 3: The blorver has been sized to accommodate the design capacity of the landfill gas flare, A blor-1er of sufficient size shall be provided to handle the landfill gas flows rate to the flare facility.

Please remember this flare facility is a standby piece of equipnent that in a typical 30--day period would operate less than 5% of the' time.

Your timely response aiid issuance of an Authority to Construct r-till be greatly appreciated. Please accept my apology for the confusion and lack of sufficient back-up data.

Sincerely,
Richard J. l1a.

Deputy DFW/Street Superintendent
RJN:ly
Encl
co: City Staff (DH'I; Asst, City Atty.; St. Sani, Supv.) Gary Rcxiriguez, PACIFIC. ENERGY
Jim Dix; Lin Bjerken, LINiaATER CO/lP.
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A LL l?\JQ.f'OS!:: LAN.D 'FILL
PU\~\

CITY OF SANTA CLARA

ALL PURPOSE LANDFILL
ESTIMATE OF LANDFILL GAS GENERATION FRO."! SITE
BASED ON IN-PLACE AND F\JT\JRE VOLUMES OF REF1JSE
R. MAUCK
A. VOLUMES OF REF1JSE

1. 2.

3. 4.

5. (See PLATE I)
Parcel 4A (Fill commenced 19601 s; complete 1974)
2,375,000 sf x 25.' average depth fill+ 27 cf/cy = 2,199,000 cu. yds, Parcel 4B (Fill commenced 1960's; complete 1970)
778,000 sf x 25 1 average depth fill + 27 cf/cy = 720,000 cu, yds.

Parcels 1/2 (Fill commenced 1975: completed Sept. 1986) 3,342,000 sf x 50' average depth fill+ 27 cf/cy = 6,189,000 cu. yds, Parcel 1B (Future)
272,000 sf x 25' average depj;h fill+ 27 cf/cy = 252,000 cu, yds, Parcels 3/6 (Fill commenced Sept. 1986; operation ongoing, estimated date of completion 1990)
1,355,000 sf x 40' average depth fill+ 27 cf/cy = 2,007,000 cu. yds, 1 8. DENSITY OF REFUSE .

Estimates of in-place refuse densilties were made
Densities for refuse placed in early 1960's and 1970's
compaction equipment used, only rubbish and inert material Parcels 1/2 and 3/6 were municipal refuse and better
compaction equipment provided,
as fill was placed,
were lower because of·
placed in Parcel 4,
methods and heavieer
AREA. ESTIMATED IN PLACE DENSITY
c.

NOTE
- Parcels 4A and 48: 800 lb. per cu,
- Parcels 1/2: 1,000 lb, per cu,
- Parcels 3/6: 1,100 lb. per CU,
- Parcel 18: 1,100 lb. per cu,

SUMMARY OF TONNAGE IN-PLACE
Parcel 4A
Parcel 48
Parcels 1/2
Parcels 3/6
Parcel 1B
. TOTAL
TABLE C-1
VOLIJrlE
(C,Y, x 106 )
2,199
o. 720
6,189
2,007
0,252
DENSITY (PCY}
800
800
1,000
1,100
1,100
yd.
yd.
yd,
yd.

TONNAGE (TONS)
879,600
288,000
3,094,500
1,103,850*
138,600*
5,504,550
* Approx, 700,000 tons future capaci t.y ( i. e, , unfilled capacity) 2 D, ESTIMATE OF LANDFILL GAS (LFG) GENERATION
A rule of thumb factor of LFG generaiton of 0, 1 cu, ft. per year per pound of refuse is typically used for ballpark estimates, What has been found is the age, type of material landfilled, depth, and cover/liner qwuality have a great impact on t.he LFG generation rate. (Reference: Methane Generation and Recovery from Landfills, EMCON Assoc,, 1982. )
Actual tests of the wells at the All Purpose Landfill site indicate different LFG generation factors for certain areas. Specifically Parcels 4A and 4B have low LFG generation rates because the refuse placed was mostly inerts and rubbish, AREA
Parcels 4A & 4B
Parcels 1/2
Parcels 3/6 & 1B
Parcels 4A & 4B
Parcels 1/2.

Parcels 3/6 & 1B
TOTAL

DATES FILLED
1960-197 4
1975-1986
1986-1992
TONNAGE.

IN-PLACE ( 106 )

1.168

3.094

1.243
. 5.505
TABLE D-1
LFG GENERATION FACl'OR (CFLYRLLB)
1988 1990 1995 2000
0,04 0,04 0.03 0.03

0.10 0.10 0,08 0.06

0.01 0.03 0.07 0.10
·TABLE D-2

LFG FLOW RATE (CFM)
1988 1990 1995 2000
222 222 178 133
1,177 1,177 942 706
47 142 331 473
1,446 1,541 1,451 1,312 cfm
3 E. SUMl'l<\RY OF LFG GENERATION
As estimated in 'l'ABLE D-2, the total site LFG generation is on the order of 1,400 to 1,500 cfm. Because of the imperfect nature of the landfill material inplace (refuse and cover) to hope that 100% of the estimated LFG generated can be recovered and collected using the current best available collection recovery technology is unrealistic. A anticipated flow .point of 1,200 cfm ( 80-86%) was noted but the flare facility and appurtenances were still designed to accommodate the theoretical higher flows (flare designed to handle 1,500 cfm, with maximlun . excursions to 1,700 cfm).

I NT.ERO·· .. · FI CE M E M·•·

CITY OF SANTA CLARA
DA TE: October 17, 1985
TO: Dave Pasquinelli, Building Plans Engineer
FROM: Rick Mauck, Street Superintendent (X-3151)
SUBJECT: Approval of Property (City) to Construct
Landfill Gas Conversion Facility at
5401.Lafayette Street
/7 INFO ONLY
/7 PLEASE REPLY
/7 CONFIDENTIAL
On June 27, 1984, the City of Santa Clara and the Santa Clara Reclamation Corpora- tion, as owners of the subject property where the subject facility is to be placed, entered into a lease agreement with Cambrian Energy Systems to develop a landfill gas conversion system. Cambrian Energy Systems assigned the lease to Pacific Lighting Energy Systems and any of their such subsidiary or controlled entity.

See enclosed portion of documents.

Modular Products, Inc., a subsidiary of Pacific Lighting Energy Systems, is responsible for the construction of the landfill gas conversion system facility portion of the project development. The Lease and Operations Agreement with the City calls for them to construct and operate the subject facility at the subject site in the proposed form.

Therefore, the original Agreement of June 27, 1984, grants approval to the lessee (Modular Products Inc., a Subsidiary of Pacific Lighting Energy Systems) to do the subject work at the subject location.

Rick Mauc
Street Superintendent
RJM: ly
Encl
cc: Dir. of Public Works/C.E.

Brian Kramer, Modular Products, Inc.

CITY OF UANTA CLARA
Instructions for Obta.lning Fermi ts by Lessees

JOB ADDRESS
Note the following excerpt from "The Contractors License Law", (Sec. 7031. 5) :
"Each county or city which requires the issuance of a permit as a condition precedent to the construction, alterations, improvement, demolition or repair of any building or struc cure shall -also require that each applicant for such a permit file as a condition to the issuance of a pennit a statement which he has prepared and signed stating that the applicant is licensed under the provisions of this chapter, giving the nll1llber of the license and stating that it is in full force and effect, or, if the applicant is exempt from the provisions of this chapter, the basis for the alleged exemption."
1, Describe work to be done, and furnish plans, drawings, diagrams, etc. where required by Inspection Division. Reference (Sec, 302 - Uniform Adininistrati ve Ccxl.e.

2. Owner's signature of approval for
other verification 01' approval):
"" $1!,e.. ... \\o...~"".\
' A~~ o...\-. 11 1'1':'l .5
lessee to do above described work (or
,,.,..,,,_ ..,.,o r..,.,J.u,-r-- ~"""' R. M~ S.\-. ~
c.r;t , o.,,.,,-,, ,,.. · •• ~ -\,, ~ ~\.,,...,_ ,1_.,_,,_,,1,.J., ..,__,.r\c._ 1!(1

3. Applicant to provide a statement. or complete in the following space proviled, the basis for exemption from tl,e Contractors License Law - -Sec. 7031. 5, 0 Personal Property (Sec, r(Olr6)
,.___~, Other - Explain
cnlvt,..

Date:

B-17
25/100
Otchtl!/
tU..L

LEASE AND OPLIIATING AGREEMENT
HlR.

LANDFILL GAS CONVERSION SYSTEMS
AMENDMENT NO. 1 10 ORIGINAL AGREEMENT
DATED JUNE ZJ, 19H4, AND ASSIGNMENT OF.

LEASE AGREEMENT DA TED JULY 24, 1984.

THIS AGREEMENT made and entered into this /!3" day of -~TCJ.L,-'i'!v'-----' 1985, I by and between the CITY OF SANTA CLARA, a municipa[ corporation (hereinafter "Lessoy"), Santa Clara.Reclamation Corporation, a C<llifornia nonprofit corporation (hereinafter "Santa Clara Reclamation"), Santa Clara Land Fill Corporation, a California nonprofit corporation (hereinafter "Santa Clara Land Fill") All Purpose Landfill Company, a Ca Ii fornia partnership (hereinafter the "Operator"), and Paci fie Lighting Energy Systems, a California corporation (hereinafter ''Lessee").

NOW, THEREFORE, the parties hereto agree as follows:

A. WHEREAS, the parties hereto have previously entered into an agreement dated June 27, 1984 (sometimes referred to as "Original Agreement"), and assignment of agreement to Pacific Lighting Energy Systems, July 24, 1984 (hereinafter referred to as . "Assignment of Lease"), herein collectively referred to as ",Agreement"; B. WHEREAS, Lessor and· Lessee entered into Agreement for the purpose of having ' the Lessee'install and operate landfill gas collection and conversion systems; C. WHEREAS, it is the desire of all parties involved to amend Agreement.

NOW, THEREFORE, it is. hereby further agreed as follows:

1. LEASE PREMISES
The Lease Premises as defined in Section 1.18 (and referred to in Section 2. 1) of the Original Agreement (said Lease Premises are described and depicted in EXHIBITS and 2 attached to the Original AgreemenL) are amended to include all the property and lands described in the attached EXHIBIT 1 and depicted on the attached EXHIBIT 2 [the Lease Premises as amended herein adds Parcel C (approximately 78.12 acres) and expands · Parcel 3/6, Phase 1 (now approximately 4!i.506 acres)]. The EXHIBIT 1 and EXHIBIT 2 attached to this Amendment No. 1 to the Original Agreement are incorporated by this reference.
·2. EFFECT OF MODIFICATION
Except as expressly modified lly this Amendment No. 1, all terms and conditions of Agreement (Original Agreement and Assignment of Lease) shall remain in full force and effect, unchanged.

APPROVED AS TO FORM:
• ']' I ,<:_f ,'.1} ,!,/J
/!,; ;sb.11/ City Attorney
I
ATTEST:
grt'y Clerk /
-2-
LES.SOR:

CITY OF SANTA CLARA
a municipal corpor tion
By:ML£_
Mayor
By:_J~~~~~~~yran-ager
LESSEE:

PACIFIC LIGHTING ENERGY SYSTEMS
a California corporation
OPERATOR:

ALL PURPOSE LANDFILL COMPANY
a California partnership
' -,
By . -----;;? . , , I . . / /' . ,/,,,--_,,,,~-1.._.·~- --~---- -- __ , ·/
,(·
SANTA CLARA LAND FILL i~RPORATION

SANTA CLARA RECLAMATION CORPORATION
By:

E X fl I I U__!__J__
Am'endmen I. NO. 1
Amendment to s,,ction 1. 18 of
the Origin9J Agreement (6/27/84)
and Assignment of Lease (7/24/84).

LEGAL DESCRIPTION OF L;\NDFILL GAS RECOVERY PROJECT
AIL that certai~ real property situate in• the City_of Sa~ta Clara, County of Santa Clara, State of Cali fofnia, described as Fol lows:

PA.RCEL 1
Beginning at the point of int~rsection of the ea·sterJy I ine of Lafayette Street (90 feet in width) with the I ine of that route of the pipe! ine described in that indenture made by and'betwe,,n GALLAGHER _FRUIT CO. and PAC!FIC··GAS AND ELECTRIC COMPANY and recorded· in Book 592 of Official Records at page·232, Santa Clara County Records;
Thence, ·from said Point of Beginnin9, along said route of the pipe I ine the fol lowing Four (4) courses:

North 67° 23' East, 980.95 feet;
North 40° 03' East, 419, 10 ·feet;
North 9° 17' East, 114.40 Feet;
North 39° 23' 30 11 East, 70.04 Feet, more or I ess, to a point in the westerly boundary I ine of Parcel 1 of that real property conveyed to the Santa Clara County Flood Control and \.later Di strict by that Grant Deed filed for record Apri 1 26, 1973 in Book 0346 of Official Records ,at page 667, said County Records;
Thence, along said boundary 1 ine of Parcel 1, North 35° 33' 54" \.lest 538,55 Feet; Thence, South 50° 34' 18" \.lest, 1,o,JI .02 Feet;
Thence, a16ng the arc of a curve, concave to the North, having a rad(us of 160 feP.t 1 through a central angle of 45° 00 1 OO", an arc length of 125.66 Feet::

Thence, North 84° 25 1 42" \.lest,· 358.95 feet to said·easterly line of Lafayette Street;
Thence, from a _tangent bearing South 9° 40' 42":East, along said easterly I ine, on the arc of a· curve, .concave to the east, having a radius of 600 feet, through a central angle of 18° 34' 18", an arc length of 194.48 feet; Thence, tangent: to last said curve, continuing along said easterly iine, South 28° 15 1 00 11 East, 548.47 feet to the Point of Beginning, and containing an Area of 21.66 Acres, more or less.

P\l. 1 of 4
EXII JI! IT 1 { cont. ) ------
PARCEL 2
Beginning at a point in the easterly line of Lafayette Street (90· feet in width), said point being the most easterly point in the boundary of that parcel :of real . proper.ty convey~d from the SANTA CLARA RECLAMATION CORPORATION to the City of Santa Claia by that Grant Deed re~orded in Book 9246 of Official Recordi at page 588,~ Santa Clara. County Records;
Thence, from said Point of Beginning along the easterly I ine of said parcel and easterly ·1 ine of Lafayette Street; North 28° 15' \.lest; 1528.69 feet, mor,e or 1.ess, to intersect ion with the I ine of th<lt route of the pipe I ine described in that indenture' made by and between GALLAGHER FRUIT CO. and' PAC IF IC GAS. ANO ELECTRIC COMPANY aJ1d recorded in Book 592 of Official Records 'at page 232,: said County Records; :

Thence, along said route of the pfp,,1 ine the fol lo~ing four (4) courses; · North 67° 23 1 East, 980.95 feet;
. North 4o 0 03' East, 419. 10 feet;
:North 9• 17! East, 114.110 feet;
. North 39° 23' 30" East, 70.04 feet, more or less, to a point in the westerly E:oundary 1 ine of Parcel 1 of that,real property conveyed to the SANTA CLARA COUNTY FLOOD CONTROL AIID \./ATER DISTRICT by that Grant Deed filed for record April 26, 1973 in Book 0) 116 of Official Records at page. 667, said County Records;
Thence, aipng said boundary 1 ine of Parcel 1, South 35° 33' 54" East, 48.19 feet, more or less, to a point in the easterly boundary I ine of Parcel Two of that real property conveyed to the SANTA CLARA RECLAMATION CORPORATION by that Grant Deed filed for record October 19, 1970 in Book 9092 of _Official Records at page 80, said County Records;
Thence, along said boundary I ine of Parcel Two, the fol lowing three (3) courses, South 37° 57' 30" \.lest, 2.93 feet:

Sou th 23 • 0 2 1 30" Ea s-t, 1 58. 40 feet;
South 55° 32' 30" East, ' lrJ8,86 feet, more ·or less, to the northwesterly corner of Parcel 2 of said real· property conveyed to the SANTA CLARA COUNTY FLOGD CONTROL ANO \./ATER DISTRICT;
Thence, along the westerly I ine of s,,id Parcel 2, South 35° J3' 5l1" East, 1678.64 feet, more or less, to a point in the southerly boundary I ine of said Parcel Two of the real property con•1cyed to the SANTA CLARA RECLAMATION CORPORATIG11i . .

Thence, along said southerly bounc1Jf'Y_ I ine the-follov,ing four (4) :cc,urses; North 34• 10 1 3011 \.lest, 11/l. 71 feet;
South 23° 53' East, 7.40 feet;
Morth 85° 15' \.lest, 139.92 feet:

South 67° 45 1 \.lest, 443.50 feet, to the most easterly point .in th·e bounCary of Parcel Three of last sdid Gran~ Deed;
Then·ce, along the southerly I ine .of said Parcel Three, South 67' 45' \.lest, 1,159.83 feet, to the Point of Begin,,ing,
'
And, containing 59.73 ·Acres, more oi' less.

Pau<! 2 of 4
EXHIB I 1:__J (cont.)
DESCRIPTIOtl OF Pel. 3/ti PHASE l LANDFILL (REVISED)_
That portion of those lands situ,1te in the City of Santa Cla-ra; County of Santa Clara, State of California, conveyed to the Santa Clara Landfill Corporation by that· deed filed for record August 3_0, 1967 in Book 7840 ~-f Official Recordi; at page 199, Santa Clara Coun~y Records, and beiag more particularly described as follows:

Beginning at a point in a line parallel with and 50 feet northerly of, measured at right angles to, th,' southerly line of Parcels: No. 2 and No. 3 of said deed recorded in Book 7_840, distant thereo'n westerly 1,425 feet, from the intersection ther.eof with the westerly line of that 50 foot' wide easement to the South Pacific Coast Railroad Company by that indenture recorded in Book 42 of Deeds at page 127, said County Records;
ThP.nce, from said Point of Beginning_, along said _parallel line North 69°, 56 minutes, 26 seconds East, 1,425.00 feet;
Thenie,' along said westerly line, North 28°, 16 minutes, 16 seconds West, 1,856.00 feet;
' Thence; South 61°, 43 _minutes, 41
I seconds \.lest, 815,00 feet;
Thence, South s0 , 27 minutes, 25 seconds East, 1,756.46 feet, to the Point of Beginning, Containing 45.506 Acres.