CITY OF BELMONT CITY COUNCIL

CITY OF BELMONT

CITY COUNCIL AND

BELMONT FIRE PROTECTION DISTRICT

BOARD OF DIRECTORS

www.belmont.gov

REGULAR MEETING AGENDA

Tuesday, June 25, 2019

7:00 p.m. City Council Chambers

City Hall, One Twin Pines Lane, Belmont, California 1. ROLL CALL

2. PLEDGE OF ALLEGIANCE - Led by the Belmont Police Department Honor Guard

3. REPORT FROM CLOSED SESSION

4. SPECIAL PRESENTATIONS

A. Proclamation Honoring Police Chief Dan DeSmidt on his Retirement

5. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA This portion of the meeting is reserved for persons wishing to address the Council on any City matter not on the

agenda. The period for public comment at this point in the agenda is limited to 15 minutes, with a maximum of

3 minutes per speaker. Speakers who requested but did not receive an opportunity to speak during this

comment period will be given an opportunity to address the Council later in the meeting. State law prohibits

the Council from acting on non-agenda items.

6. COUNCILMEMBER ANNOUNCEMENTS

7. CONSENT CALENDAR Consent Calendar items are considered to be routine in nature and will be enacted by one motion. There will

be no separate discussion on these items unless a Councilmember or staff request specific items to be removed

for separate action. The City Attorney will read the title of ordinances to be adopted.

A. Approval of Minutes

Recommendation: Approve Minutes as Presented

Attachment(s):

Minutes of Special and Regular Meeting of May 28, 2019

Minutes of Regular Belmont Fire Protection District Meeting of May 28,

2019

B. Parking Changes for Hallmark Drive and El Camino Real

Recommendation: Adopt a resolution approving the installation of 20 feet of white

curb along the frontage of 2976 Hallmark Drive and approving the extension of red

http://www.belmont.gov/

COMBINED AGENCY MEETING

June 25, 2019

Page 2

curb to 20 feet at 240 El Camino Real

Attachment(s):

Staff Report

Resolution

C. Extension of an Exclusive Negotiating Agreement, and Approval of a

Predevelopment Loan Agreement for $316,000 for Firehouse Square, 1300 El

Camino Real

Recommendation: 1) Adopt a resolution approving an extension of the Exclusive

Negotiating Agreement with Belmont Firehouse Square, LLC, to October 31, 2019,

for the future purchase, sale, and development of Firehouse Square and finding that

this approval is exempt from the California Environmental Quality Act.; 2) Adopt a

Resolution approving a Predevelopment Loan Agreement with MP Firehouse Square

Associated, LP, for an amount not to exceed $316,000, to cover projected

predevelopment costs through execution of a Disposition and Development Loan

Agreement (DDLA)

Attachment(s):

Staff Report

Extension Request Letter

Resolutions

D. Microsoft Enterprise Agreement with SoftwareOne, Inc.

Recommendation: Adopt a resolution authorizing the City Manager to issue the

purchase orders required for payment of a three-year Microsoft Enterprise Agreement

with SoftwareOne, Inc., with an annual payment of $84,486.53 for a total of

$253,460

Attachment(s):

Staff Report

Resolution

Quote

E. Memorandum of Understanding between the City of Belmont and AFSCME

Recommendation: Adopt a resolution approving a revised Memorandum of

Understanding between the City of Belmont and the American Federation of State,

County, and Municipal Employees (AFSCME)

Attachment(s):

(Pending)

8. PUBLIC HEARINGS

A. Firehouse Square Entitlements **(MATTER TO BE CONTINUED TO

AUGUST 27, 2019)**

Project Description: Construction of a new four-story, mixed-use

residential/commercial building consisting of 65 affordable rental apartment units, a


June 25, 2019

Page 3

manager's unit, amenity space, a community room, and 3,748 square feet of retail and

commercial space; and a 15-unit market rate for sale townhome component. The

project site is located on City-owned property at 1300 El Camino Real and 875

O'Neill Avenue; APNs: 045-244-010, 045-244-150, and 045-244-160. ZONING:

Village Core (VC), GENERAL PLAN DESIGNATION: Village Core, CEQA

STATUS: Exemption pursuant to State Public Resources Code Section 21155.4(a)

and CEQA Guidelines Section 15182(b) (Project Proximate to Transit)

Recommendation: 1) Consider Planning Commission recommendations in support of

the Project; 2) Adopt a Resolution making certain findings under Public Health and

Safety Code Section 33433 for disposition of public property; and approving a

Disposition, Development and Loan Agreement between the City of Belmont and MP

Firehouse Square Associates, LP and a Disposition and Development Agreement

between the City of Belmont and Belmont Firehouse Square Associates, LP and a

Disposition and Development Agreement between the City of Belmont and Belmont

Firehouse Square, LLC for the Project. 3) Adopt Resolutions approving: a Tentative

Map, Design Review, Conditional Use Permit, Grading Plan, and Tree Permit. The

project also includes requests for: 1) an additional floor area and height allowance in

exchange for specified public benefits under Belmont Zoning Ordinance (BZO)

Section 31.4.1(f); 2) an Exemption to Maximum Floor Plate as a Percent of First

Floorplate standards under BZO Section 31.4.1(h)(1); 3) an Alternative to Window

Transparency requirements under BZO Section 31.4.1(k); 4) a Conditional Use

Permit to exceed the three story street wall height under BZO Section 31.5.2; 5) a

Conditional Use Permit for less than 75% of the ground floor facade being

transparent window glazing under BZO Section 31.5.2; and 6) a Modification to the

onsite loading space requirement under BZO Section 31.6.9(c)

9. OTHER BUSINESS

A. Wireless Facilities Regulation Update

Recommendation: Information only

Attachment(s):

Staff Report

Administrative Policy

B. Belmont Sports Complex Project and Funding Update

Recommendation: Receive update on status of Belmont Sports Complex Synthetic

Turf Project cost estimate, financing, and construction timeline

Attachment(s):

Staff Report

10. COMMISSION, COMMITTEE, AND COUNCIL INTERGOVERNMENTAL

ASSIGNMENT UPDATES, AND STAFF ITEMS


June 25, 2019

Page 4

A. Verbal report from Councilmembers on Intergovernmental (IGR) and

Subcommittee Assignments

B. Verbal report from City Manager

11. MATTERS OF COUNCIL INTEREST/CLARIFICATION (NONE) Items in this category are for discussion and direction to staff only. However, Council/Board may take final

action on an item if there is no need for additional staff analysis.

12. ADJOURNMENT

If you need assistance to participate in this meeting, please contact the City Clerk at (650) 595-7413. The speech

and hearing-impaired may call (650) 637-2999 for TDD services. Notification in advance of the meeting will enable the

City to make reasonable arrangements to ensure accessibility to this meeting.

Meeting information can also be accessed via the internet at: www.belmont.gov. All staff reports will be posted to the

web in advance of the meeting, and any writings or documents provided to a majority of the City Council/District Board

regarding any item on this agenda will be made available for public inspection in the City Clerk's Office, One Twin Pines

Lane, during normal business hours and at the Council Chambers at City Hall, Second Floor, during the meeting.

Regular meetings televised on Comcast Channel 27, and web streamed via City’s website at www.belmont.gov




May 28, 2019

Page 1

Minutes of Special and Regular Meeting of May 28, 2019

One Twin Pines Lane

SPECIAL MEETING

CLOSED SESSION [5:30 P.M., Suite 360]

(1) Conference With Real Property Negotiators (Govt Code Section 54956.8)

Property:1300 El Camino Real, 1365 Fifth Avenue, and 875 O’Neill Avenue in

the City of Belmont, APN 045-244-010, 045-244-150, and 045-244-160

Agency negotiators: Greg Scoles and Scott Rennie

Negotiating parties: City of Belmont, Belmont Firehouse Square, LLC, and MidPen

Housing Corporation

Under negotiation: Price and terms for sale of City property

STUDY SESSION [6:10 P.M., City Council Chambers - to be televised]

Introduce FY 2020 Proposed Annual Budget

Finance Director Fil stated that goal of the budget is to thrive as an organization, being mindful of

pressures from external sources. He noted that the focus of the budget is on core services and top

priorities. He described the City’s aging infrastructure needs, notable upcoming CIP (Capital

Improvement Program) projects, and the general fund investment in capital projects. He reviewed

the staffing plan and pension obligations, and outlined the new service model for fire services

through the recent consolidation.

Finance Director Fil reviewed budget assumptions based on demographics, revenues, operations

and capital improvements, and provided a comparative analysis of revenues and expenditures from

previous years; outlining expenditure changes primarily in infrastructure. He noted the increased

revenues in TOT (transient occupancy tax) as well as from Measure I (sales tax). He provided

projected PERS rate increases, and noted the need to set aside monies for the rebuilding of Fire

Station 15.

(At this time, being 6:25 P.M., Councilmember Stone stepped off the dais and out of the room.

At this time, being 6:35 P.M. Councilmember Stone returned to the dais.)

Department heads provided an overview of their department’s staffing and work plan, major

accomplishments, objectives, and contributions to the Council’s priorities.

Public Works Director Oskoui reviewed the proposed Capital Improvement Program for FY 2020.

Attended by: Councilmembers Mates, Lieberman, Stone, Kim, Hurt

ADJOURNMENT at this time, being 7:00 P.M.

Terri Cook

City Clerk


May 28, 2019

Page 2

REGULAR MEETING

CALL TO ORDER 7:10 P.M.

ROLL CALL

Councilmembers Present: Mates, Lieberman, Stone, Kim, Hurt

Councilmembers Absent: None

PLEDGE OF ALLEGIANCE

Led by Mayor Hurt

REPORT FROM CLOSED SESSION

City Attorney Rennie stated that no action was taken in the Closed Session held earlier.

SPECIAL PRESENTATIONS

Recognition of Rethink Waste's Art Contest Winner

Emi Hernandez, Rethink Waste, described the art contest. Mayor Hurt presented a certificate of

recognition.

Proclamation Honoring City Manager Greg Scoles upon his retirement

Councilmembers offered comments regarding City Manager Scoles.

Mayor Hurt read the proclamation.

City Manager Scoles noted that achievement is all about team, including the City Council.

Cathy Wright, Belmont resident/former City Councilmember, commented regarding City

Manager Scoles’ service.

Mary Morrissey Parden and Adele Della Santina, Belmont Chamber of Commerce, thanked

City Manager Scoles for his leadership.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA

David Carey, Belmont resident, thanked the City of Belmont for its support of Bike to Work Day.

Kathleen Beasley, Belmont Library, outlined upcoming activities and programs at the library.

Carolyn Sheperd, Belmont resident, advocated for people who are mentally ill or have other

disabilities.

Alex Cooke, Belmont resident, invited the community to the American Legion’s 100th anniversary

celebration to be held at the Sports Complex.


May 28, 2019

Page 3

Sam Hosmer, Belmont resident, Belmont Historical Society, provided an update on the newspaper

archive program for the History Room. He thanked the City Council for its contribution that

assisted in making this project happen.

ITEMS APPROVED ON CONSENT CALENDAR

Ordinance 2019-1141 which amends Belmont Zoning Ordinance (BZO) Sections 2 (Definitions),

5A (Corridor Mixed Use (CMU) & Regional Commercial (RC) Districts), and 8A (Parking

Standards). The proposed amendments: 1) modify Personal Services Use definitions, 2) amend

hotel and commercial office parking standards in the CMU & RC Districts, and 3) clarify text and

correct drafting errors

Ordinance 2019-1142 approving a Development Agreement between the City of Belmont and

Windy Hill PV Fourteen MF LLC

Resolution 2019-053 authorizing the City Manager to execute a Master Service Agreement for

audio visual system upgrades in the Council Chambers, including a one-year support agreement

with Spinitar for a total amount not to exceed $80,000

Resolution 2019-054 which 1) Adopts a Tenant Relocation Plan; 2) Adopts a Replacement

Housing Plan (HSC 3341); 3) Determines General Plan Consistency; 4) Determines that the action

is categorically exempt from CEQA for City-owned Properties (APNs 040-500-170, 106-190-070,

106-270-060 and 044-222-180); and 5) Authorizes Execution of Related Documents and Issuance

of Relocation Benefits by the City Manager

Resolution 2019-055 approving a revised Memorandum of Understanding between the City of

Belmont and the American Federation of State, County, and Municipal Employees (AFSCME)

ACTION: On a motion by Councilmember Stone, seconded by Councilmember Kim, the Consent

Agenda was unanimously approved.

City Attorney Rennie read the title of the ordinances.

OTHER BUSINESS (Item taken out of order on agenda)

Silicon Valley Clean Water (SVCW) Water Infrastructure Finance and Innovation Act

(WIFIA) Loan and 2019 Notes Issue

Finance Director Fil explained that this action is the last formal step for the loan agreement to fund

a large capital project for Silicon Valley Clean Water. He reviewed the debt service and clarified

that rates will not need to be raised to finance the debt.

Robert Poor, Silicon Valley Clean Water’s Financial Advisor, outlined the terms of the loan.

Councilmember Lieberman pointed out that the City of Belmont will save money as a result of the

proposed action.

ACTION: On a motion by Councilmember Stone, seconded by Councilmember Lieberman,

Resolution 2019 056 authorizing the City to obligate its Wastewater Enterprise to pay its allocable

share of debt service on the Silicon Valley Clean Water (SVCW) 2019 Wastewater Revenue Notes

(the 2019 Notes) and the Water Infrastructure Finance and Innovation Act Loan (WIFIA) and


May 28, 2019

Page 4

authorizing certain related matters not to exceed $25,000,000 million for the 2019 Notes and

$25,000,000 million for the WIFIA Loan was unanimously approved.

PUBLIC HEARINGS

Firehouse Square Project- 1300 El Camino Real and 875 O'Neill Avenue

Community Development Director de Melo described the proposed project and entitlements being

sought for the project known as Firehouse Square at El Camino Real and O’Neill Avenue, and he

clarified actions to be taken tonight and at the June 11 hearing.

Contract Planner Adam Peterson provided background on the adoption of General Plan (GP) and

the Belmont Village Specific Plan (BVSP) which governed the planning of Firehouse Square. He

described the location and setting and provided an overview of the project. He noted that the

project is subject to CEQA (California Environmental Quality Act) but further CEQA review is

not required due to fact that the project is located in a transit priority area. He explained that the

project is consistent with the BVSP, proposed use, density and policies in a sustained communities

strategy. He described the affordability component. He explained the proposal for back-in parking

which would result in a loss of 16 on-street spaces. He explained that this component is

discretionary. He outlined the Conditional Use Permit (CUP) request and other entitlements and

described the Planning Commission’s review and public comments received at the Planning

Commission meeting. He noted that the Commission voted unanimously in favor of the project.

In response to Councilmember Kim, Mr. Peterson confirmed that a new CUP would be required if

the proposed retail space is converted to housing.

In response to Councilmember Stone, Community Development Director de Melo confirmed that

prevailing wage would be required on this project. He explained that retail space at the corner of

El Camino Real and O’Neill Avenues has been planned since 2013, and any change to that would

delay existing proposed entitlements.

In response to Councilmember Lieberman, Mr. Peterson stated that studies are inconclusive as to

whether or not reverse angle parking is safer. He outlined the pros and cons of such an

arrangement.

(At this time, being 8:30 P.M., Councilmember Stone stepped off the dais and out of the room.)

Discussion ensued regarding reverse angle parking.

(At this time, being 8:35 P.M. Councilmember Stone returned to the dais.)

Jeff Smith, project applicant (Sares Regis), outlined other Sares Regis projects completed or under

construction on the Peninsula. He described the four components of the project and noted that

MidPen Housing joined the project in early 2018.

Serena IP, MidPen Housing, described the mission of the nonprofit organization and provided


May 28, 2019

Page 5

examples of other MidPen Housing projects in Belmont and neighboring cities. She described the

community outreach that was utilized for this project. She reviewed the historic preservation of

the fire station façade and outlined the vehicle management plan. She explained that the project is

requesting concessions in the CUP regarding retail parking. She explained that free Sam Trans

passes would be provided to residents, and she described the lottery process for applicants.

In response to Councilmember Mates, Mr. Peterson noted that the public space exceeds the

minimum required in the BVSP. He noted that Parks and Recreation Commission review is

required for the project.

In response to Councilmember Lieberman, Nevada Merriman of MidPen Housing stated that many

large employers provide Caltrain monthly passes, but that MidPen Housing is not a big enough

entity to be able to offer this benefit, as it is not cost effective. She and Mr. Smith confirmed that

the project is not financially dependent on the parking configuration.

In response to Councilmember Stone, Ms. Merriman explained that a commercial broker has not

yet been engaged relative to the retail space, and that space has been designed for a variety of

potential uses.

In response to Councilmember Kim, Ms. Merriman clarified that MidPen Housing and Sares Regis

have different economics and different permitting requirements, and she confirmed they are not

tied together.

In response to Mayor Hurt, Mr. Smith explained that Civic Lane will remain a public alley and

that O’Neill Avenue will not likely be reconfigured.

The following people spoke in favor of the project:

Adele Della Santina, Belmont Chamber of Commerce

Brian Schmidt, Greenbelt Alliance and Belmont resident

Diane Bailey, Belmont resident

Alexander Melendrez, Housing Leadership Council

Mary Morrissey Parden, Belmont Chamber of Commerce

Karyl Eldridge, Faith in Action Bay Area

Councilmember Lieberman expressed support for the project.

Councilmember Mates stated that she recognizes the intent of back-in parking but is concerned

regarding the resulting loss of 16 spaces. She pointed out that the largest benefit of this project is

the affordability component and that the project provides an anchor for a new downtown.

Councilmember Kim expressed support for project and noted that he will comment at the next

meeting regarding the entitlements being sought. He commented regarding the inclusion of three-

bedroom units and expressed support for the conversion of commercial space to residential. He

pointed out this is a small space with few options for use, that tenant improvements are expensive,


May 28, 2019

Page 6

and the retail has no dedicated parking. He pointed out that five additional units could be realized

with this conversion at no additional cost to the City.

Councilmember Stone expressed support for the project, and he does not support the loss of 16

parking spaces for back-in parking. He noted that although a requirement, he supports the use of

prevailing wage. He acknowledged that Sares Regis will be making a contribution to School Force.

Mayor Hurt stated that she spoke regarding the need for housing at her State of the City address

earlier in the year. She commented regarding the affordability component, the proximity to transit,

and that the project serves various constituencies. She supports the neighbors’ concerns regarding

loss of parking.

RECESS: 10:45 P.M.

RECONVENE: 10:50 P.M.

ACTION: On a motion by Councilmember Stone, seconded by Councilmember Mates,

Resolution 2019-057 finding the project exempt from the California Environmental Quality Act

(CEQA) pursuant to State Public Resources Code Section 21155.4(a) was unanimously approved

COMMISSION, COMMITTEE, AND COUNCIL INTERGOVERNMENTAL

ASSIGNMENT UPDATES, AND STAFF ITEMS

Verbal report from Councilmembers on Intergovernmental (IGR) and Subcommittee

Assignments

Councilmember Stone reported on a recent San Mateo County Library meeting.

Councilmember Lieberman reported on recent San Mateo County Pre-Hospital, Silicon Valley

Clean Water, and Economic Subcommittee meetings.

Verbal report from City Manager

City Manager Scoles noted that the City Council has approved several major projects in past few

meetings.


Terri Cook

City Clerk

Meeting televised, recorded, and webstreamed.

REGULAR MEETING

BELMONT FIRE PROTECTION DISTRICT

May 28, 2019

Page 1

SPECIAL MEETING OF

DIRECTORS OF BELMONT FIRE PROTECTION DISTRICT

Tuesday, May 28, 2019

ONE TWIN PINES LANE

BELMONT, CALIFORNIA

(Note: Belmont Fire Protection District meeting held concurrent with the City Council Meeting.)

CALL TO ORDER 7:05 P.M.

ROLL CALL

BOARDMEMBERS PRESENT: Mates, Lieberman, Stone, Kim, Hurt

BOARDMEMBERS ABSENT: None

ITEM APPROVED ON CONSENT CALENDAR

Resolution 2019-04 ratifying a Mid-Year Budget Adjustment to the Belmont-San Carlos Fire

Department FY 2020 Budget from $2,195,886 to $2,917,250 due to CalPERS pension cost increases

ACTION: On a motion by Director Stone, seconded by Director Kim, the Consent Agenda was

unanimously approved.


Terri Cook

District Secretary

Page 1 of 2

Agency: City of Belmont

Staff Contact: Justin Lai, Public Works, 650-637-2998, [email protected]

Agenda Title: Parking Changes for Hallmark Drive and El Camino Real

Agenda Action: Resolution

Recommendation

Adopt a resolution approving the installation of 20 feet of white curb along the frontage of 2976 Hallmark

Drive and approving the extension of red curb to 20 feet at 240 El Camino Real.

Background The United States Postal Service (USPS) has an existing blue USPS mailbox located at 2976 Hallmark

Drive. When cars are parked along Hallmark Drive residents have difficulty making a mail drop-off. A

request was submitted to the Parking and Traffic Safety Committee (PTSC) for the installation of 20 feet

of white curb to allow for drop-offs only.

At the corner of Anita Avenue and El Camino Real there is existing red curb on both Anita Avenue and

El Camino Real. A resident submitted a PTSC request for additional red curb due to the lack of sight

distance when making a right turn onto El Camino Real.

The PTSC notified residents and property owners within 300 feet of the proposed parking restrictions and

held a meeting on June 4, 2019 to consider these requests.

Analysis

2976 Hallmark Drive

The installation of the white curb will allow residents drop-off access to the existing USPS mailbox. The

installation of the white curb will result in the elimination of one (1) parking space along the frontage of

the property as shown on Exhibit A. Based on a review of the location, the removal of the parking stall

would result in minimal impact. There were no objections to the installation of white curb at the PTSC

meeting and the PTSC recommends installing the white curb.

240 El Camino Real

The extension of red curb along El Camino Real at Anita Avenue will allow a better sight distance for

cars turning onto El Camino Real. The extension of the red curb will result in the elimination of one (1)

parking space along the frontage of 240 El Camino Real as shown on Exhibit A. No objections were

heard at the PTSC meeting, but an email was received from the adjacent property owner stating they were

against the red curb installation. While an objection was received, the PTSC still recommends the

extension of red curb because of the safety concerns and need for increasing the sight distance.

Meeting Date: June 25, 2019

STAFF REPORT

Page 2 of 2

The Public Works Department has a budget for these types of installations, therefore there will be no

additional cost associated with these requests.

Alternatives 1. Take no action

2. Refer back to staff for further information

Attachments

A. Resolution

Fiscal Impact

No Impact/Not Applicable

Funding Source Confirmed: 231-3-750-8641/Repair & Maintenance Supplies

Source: Purpose: Public Outreach:

Council Statutory/Contractual Requirement Posting of Agenda

Staff Council Vision/Priority Other*

Citizen Initiated Discretionary Action

Other* Plan Implementation*

* Residents and property owners within 300 feet of the parking changes were notified.

Page 1 of 1

RESOLUTION NO. 2019-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT APPROVING

INSTALLATION OF WHITE CURB AT 2976 HALLMARK DRIVE AND EXTENDING

THE RED CURB AT 240 EL CAMINO REAL

WHEREAS, the Parking and Traffic Safety Committee (PTSC) contacted the residents and

property owners regarding the restrictions and reviewed the requests at its June 4, 2019 meeting;

and,

WHEREAS, the PTSC recommends approving the installation of 20 feet of white curb at

2976 Hallmark Drive, Exhibit A; and,

WHEREAS, the PTSC recommends approving the extension of red curb to 20 feet at 240

El Camino Real, Exhibit A.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows:

SECTION 1. Approves the installation of 20 feet of white curb at 2976 Hallmark Drive;

and,

SECTION 2. Approves the extension of red curb to 20 feet at 240 El Camino Real.

* * *

ADOPTED June 25, 2019, by the City of Belmont City Council by the following vote:

Ayes:

Noes:

Absent:

Abstain:

ATTEST:

City Clerk

Mayor

APPROVED AS TO FORM:

City Attorney

Page 1 of 4 Firehouse Square


Staff Contact: Jennifer Rose, Finance Department, (650) 595-7453, [email protected]

Agenda Title: Extension of an Exclusive Negotiating Agreement and Approval of a Predevelopment Loan Agreement for $316,000 for Firehouse Square, 1300 El Camino Real

Agenda Action: Resolutions

Recommendation 1) Adopt a resolution approving an extension of the Exclusive Negotiating Agreement (ENA) with

Belmont Firehouse Square, LLC, to October 31, 2019, for the future purchase, sale, and development of Firehouse Square and finding that this approval is exempt from the California Environmental Quality Act.

2) Adopt a Resolution approving a Predevelopment Loan Agreement with MP Firehouse Square Associates, LP, for an amount not to exceed $316,000, to cover projected predevelopment costs through execution of a Disposition and Development Loan Agreement (DDLA).

Background The City has been engaged in a planning process to redevelop the two acres of property located between El Camino Real and Fifth Avenue, and between Broadway and O’Neill Avenue, in the heart of downtown Belmont, known as Firehouse Square. In 2013, the City entered into an Exclusive Negotiating Agreement (ENA) with Belmont Firehouse Square, LLC, an affiliate of Sares Regis Group of Northern California, as the master developer for Firehouse Square. On June 28, 2016, the Council authorized an extension of the ENA and reached agreement on a non-binding term sheet that memorialized the preliminary terms negotiated between the City and developer and that defined the project to be evaluated during the environmental and public review processes. On February 28, 2017, the Council authorized an extension of the ENA and an amendment to the non-binding term sheet to permit the project to follow the Belmont Village Specific Plan and Environmental Impact Report. This delay was to ensure that the project would be consistent with the City’s vision for the area. On March 27, 2018, the Council authorized an extension of the ENA to allow Sares Regis to complete the


STAFF REPORT


entitlement process and negotiations for the Disposition and Development Agreement (DDA). On June 26, 2018, the Council authorized an extension of the ENA to January 31, 2019 to increase the affordability of the project and to allow Sares Regis to complete the entitlement process and negotiations for the Disposition and Development Agreement (DDA). On January 22, 2019, the Council authorized an extension of the ENA to July 31, 2019 and an amendment to the non-bonding term sheet that authorized a developer partnership with MidPen Housing to construct the mixed-use affordable component of the project. On May 7, 2019, the Planning Commission considered the project at a Public Hearing, and took actions recommending that the City Council support all of the required project entitlements and that the Council find the project to be exempt from CEQA. On May 28, 2019, the City Council held the first of two required public hearings to consider the project, during which they received public testimony and discussed the project. The Council adopted a resolution finding the project to be exempt from CEQA. The second public hearing to consider all entitlement resolutions has been continued to August 27, 2019 to allow for additional site investigation work to be completed by the developer that will facilitate completion of the DDA and DDLA negotiations. Analysis ENA Extension Request - The previous ENA extension granted by the City Council in January 2019 indicated that the extension would allow the developer to complete several remaining actions, summarized below:

Complete all submittals for Planning Entitlement and Tentative Map Completed Complete CEQA Initial Study Completed Update project financial models and obtain site appraisals Completed Hold Planning Commission public hearing Completed Complete negotiations and the DDA/DDLA In Progress Hold City Council hearings In Progress

As noted above, this ENA extension is being requested by the developer to facilitate supplemental site investigation work that was not anticipated under the previously approved project schedule. The site work has commenced in mid-June and is expected to be completed in early July 2019, after which the parties should be able to finalize the DDA/DDLA documents. The ENA, scheduled to terminate on July 31, 2019 would be extended, with this action, to October 31, 2019. The term sheet provides that no legal obligations will exist unless and until the parties have negotiated, executed and delivered a mutually acceptable Development and Disposition Agreement. In addition, the City retains full discretion to approve, deny, or modify the project.


The staff recommends that the Council adopt the proposed resolution extending the ENA to October 31, 2019. The City Manager will not be authorized to grant any additional extensions without Council consideration. Request for Predevelopment Loan - MP Firehouse Square LP (MidPen Housing), the developer of the mixed-use affordable housing component of the project, has submitted a request to the City for a predevelopment loan of affordable housing monies, in an amount not to exceed $316,000, to fund certain predevelopment activities related to the project. The request for this loan is in response to the additional site investigation work and related project extension to August 2019, both of which were not anticipated prior to execution of a full Disposition and Development Loan Agreement (DDLA). Staff has reviewed the list of expenditures on which the loan funds would be used, and determined that they are appropriate and necessary to allow the project to proceed while additional site investigation work is being conducted, and enables the Developer to work with the City to complete the DDLA. A Predevelopment Loan Agreement, with exhibits, has been prepared and reviewed by both the City and Developer team (Attachment C). The loan would be funded using existing negotiated affordable housing fees that were generated by previously approved housing projects in the City. The staff recommends that the Council adopt the attached resolution approving a Predevelopment Loan Agreement for $316,000. Alternatives 1. Refer to staff for additional information. 2. Request changes to the terms of the loan agreement. 3. Deny loan agreement request. 4. Take no action and allow the ENA to expire. Attachments A. Request to Extend the ENA B. Resolution extending ENA to 10/31/19 C. Resolution approving a Predevelopment Loan Agreement


Fiscal Impact

No Impact/Not Applicable Funding Source Confirmed: Adoption of the resolutions would facilitate provision of a

predevelopment loan for $316,000 to the developer. This loan would be unsecured and utilized for predevelopment activities occurring prior to execution of a DDLA. Affordable Housing funds for the requested predevelopment loan are available in Acct 277-5-902-8589. These funds are required by law to be utilized for development of new affordable housing units; the requested predevelopment loan would comply with this requirement.



Staff Council Vision/Priority Other Citizen Initiated Discretionary Action Other Plan Implementation

SARES REGIS

Afshin Oskoui

Acting City Manager

City of Belmont

One Twin Pines Lane, Suite 340

Belmont, CA. 94002

Re: Firehouse Square, Belmont, CA.

Dear Mr. Oskoui,

June 12, 2019

BFS (Sares Regis) and MidPen Housing have been making great progress on the entitlement/approvals of

the Firehouse Square property. As you know, MidPen would develop and operate the 66 Flats in a 100%

affordable rental community. BFS would develop and sell the 15 Townhomes. The primary benefits of

this co-development effort are the much higher affordability of the site (going from 20 homes to 66 homes)

as well as maintaining the current project design & quality as well the current entitlement progress.

The project was approved by Planning Commission on May 7th and CEQA for the project was approved by

City Council on May 28th At this time, we request a 90-day extension to the ENA from 07 /30/19 to •

10/29/19 with the ability of the City Manager to extend an additional 90 days.

We are completing the two agreements with the City, and there are no Council hearing dates in July. We

should be on track to go back to Council in late August. We appreciate your consideration of this request

for the time to complete obtain the required approvals.

Regards,

enior Vice President

Sares Regis Group of Northern California, LLC

Cc: Scott Rennie, Carlos de Melo

Andrew Hudacek, Tamsen Plume,

Nevada Merriman - MidPen

ENA File

Sa res Regis Group of Northern California, LLC

901 Mariners Island Boulevard, Suite 700, San Mateo, California 94404

T 650-378-2800 F 650-570-2233

1

RESOLUTION NO. 2019 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT APPROVING AN EXTENSION OF THE EXCLUSIVE NEGOTIATING AGREEMENT WITH BELMONT FIREHOUSE SQUARE, LLC, TO OCTOBER 31, 2019, FOR THE FUTURE PURCHASE, SALE, AND DEVELOPMENT OF FIREHOUSE SQUARE, AND FINDING THAT THIS APPROVAL IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT

WHEREAS, on August 13, 2013, Council approved Resolution No. 2013-094, entering into an Exclusive Negotiating Agreement (ENA) with Belmont Firehouse Square, LLC as the master developer for the Firehouse Square project for a one-year term; and,

WHEREAS, the term of the ENA was subsequently extended to March 15, 2015 by the City Manager as permitted by the ENA; and,

WHEREAS, on March 10, 2015, Council approved Resolution No. 2015-031, authorizing an extension of the ENA to September 11, 2015 by the City Manager, as permitted by the ENA; and,

WHEREAS, on September 8, 2015, Council approved Resolution No. 2015-089, authorizing an extension of the ENA to March 9, 2016 by the City Manager, as permitted by the ENA; and,

WHEREAS, on March 8, 2016, Council approved Resolution No. 2016-032, authorizing an extension of the ENA May 9, 2016 with an additional 60 day extension to July 8, 2016 for the purpose of completing the negotiations for a non-binding term sheet which could lead to the completion of a Development and Disposition Agreement; and,

WHEREAS, on June 28, 2016 the Council approved Resolution No. 2016-064, approving a non-binding term sheet and amendment to the ENA; and,

WHEREAS, on February 28, 2017 the Council approved Resolution No. 2017-012, approving an amendment to the non-binding term sheet and amendment to the ENA; and,

WHEREAS, on March 27, 2018 the Council approved Resolution No. 2018-020, approving an amendment to the non-binding term sheet and amendment to the ENA; and,

WHEREAS, on June 26, 2018 the Council approved Resolution No. 2018-062, approving an amendment to the non-binding term sheet and amendment to the ENA; and,

WHEREAS, on January 22, 2019 the Council approved Resolution No. 2019-009, approving an amendment to the non-binding term sheet and amendment to the ENA; and,

WHEREAS, on May 7, 2019, the Planning Commission considered the project at a Public Hearing, and took actions recommending that the City Council support all of the required project entitlements and that the Council find the project to be exempt from California Environmental

2

Quality Act (CEQA); and,

WHEREAS, on May 28, 2019, the City Council held a public hearing to consider the project, during which they received public testimony and adopted a resolution finding the project to be exempt from CEQA; and,

WHEREAS, the parties desire to further extend the ENA to allow for additional site investigation work to be completed and completion of a Development and Disposition Agreement and a Development and Disposition Loan Agreement with the project Developers.

NOW, THEREFORE, the City Council of the City of Belmont resolves as follows: Based on all information submitted to or considered by the City Council during its deliberations on this matter:

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. As requested by Belmont Firehouse Square, LLC, the City Council hereby amends the schedule of the Exclusive Negotiating Agreement (the "ENA") initially executed as of August 13, 2013 as amended to read as follows:

C. The Schedule comprises the following tasks:

• All discretionary planning approvals received, and DDA and DDLA approved – October 31, 2019.

SECTION 3. Through this resolution, the City has made no commitment to approve any particular application for land use approvals on Firehouse Square. The City retains the absolute sole discretion to (i) modify the proposed project as may, in its sole discretion, be necessary to comply with CEQA and to mitigate impacts of the proposed project, (ii) select other feasible alternatives to avoid significant environmental impacts, (iii) balance the benefits of the proposed project against any significant environmental impacts prior to taking final action if such significant impacts cannot otherwise be avoided, (iv) determine not to approve the project as proposed, or (v) modify the proposed project for consistency with adopted City plans. Therefore, it can be seen with certainty that there is no possibility that the approval of this resolution in and of itself may have a significant effect on the environment, and the activity is not subject to CEQA. (CEQA Guidelines Section 15061(b)(3).)

* * *

3


Ayes: Noes: Absent: Abstain:

ATTEST:

City Clerk

Mayor


City Attorney

Page 1 of 3

RESOLUTION NO. 2019 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT APPROVING A PREDEVELOPMENT LOAN AGREEMENT WITH MP FIREHOUSE SQUARE ASSOCIATES, LP, IN THE AMOUNT OF $316,000, TO FUND PROJECTED PREDEVELOPMENT COSTS THROUGH EXECUTION OF A DISPOSITION AND DEVELOPMENT LOAN AGREEMENT

WHEREAS, on August 13, 2013, Council approved Resolution No. 2013-094, entering into an Exclusive Negotiating Agreement (ENA) with Belmont Firehouse Square, LLC as the master developer for the Firehouse Square project for a one-year term; and,

WHEREAS, the term of the ENA was subsequently extended to March 15, 2015 by the City Manager as permitted by the ENA; and,

WHEREAS, on March 10, 2015, Council approved Resolution No. 2015-031, authorizing an extension of the ENA to September 11, 2015 by the City Manager, as permitted by the ENA; and,

WHEREAS, on September 8, 2015, Council approved Resolution No. 2015-089, authorizing an extension of the ENA to March 9, 2016 by the City Manager, as permitted by the ENA; and,

WHEREAS, on March 8, 2016, Council approved Resolution No. 2016-032, authorizing an extension of the ENA May 9, 2016 with an additional 60 day extension to July 8, 2016 for the purpose of completing the negotiations for a non-binding term sheet which could lead to the completion of a Development and Disposition Agreement; and,

WHEREAS, on June 28, 2016 the Council approved Resolution No. 2016-064, approving a non-binding term sheet and amendment to the ENA; and,

WHEREAS, on February 28, 2017 the Council approved Resolution No. 2017-012, approving an amendment to the non-binding term sheet and amendment to the ENA; and,

WHEREAS, on March 27, 2018 the Council approved Resolution No. 2018-020, approving an amendment to the non-binding term sheet and amendment to the ENA; and,

WHEREAS, on June 26, 2018 the Council approved Resolution No. 2018-062, approving an amendment to the non-binding term sheet and amendment to the ENA; and,

WHEREAS, on January 22, 2019 the Council approved Resolution No. 2019-009, approving an amendment to the non-binding term sheet and amendment to the ENA, authorizing MP Firehouse Square Associates LP as the partner developer for the mixed-use affordable housing component of the project, which includes development of 66 residential apartment units, 65 of which will be available to lower-income households; and,

WHEREAS, on May 7, 2019, the Planning Commission considered the project at a Public Hearing, and took actions recommending that the City Council support all of the required project

Page 2 of 3

entitlements and that the Council find the project to be exempt from California Environmental Quality Act (CEQA); and,

WHEREAS, on May 28, 2019, the City Council held a public hearing to consider the project, during which they received public testimony and adopted a resolution finding the project to be exempt from CEQA; and,

WHEREAS, MP Firehouse Square Associates L.P. has conducted preliminary site investigation work as authorized by the ENA and determined, with consensus from the City, that additional site investigation is warranted; and,

WHEREAS, the additional site investigation work has warranted an extension of the ENA to October 21, 2019; and,

WHEREAS, the second required public hearing for the Firehouse Square project has been tentatively continued to August 27, 2019, to allow for completion of the additional site investigation and subsequent completion of negotiations for the DDA and DDLA; and,

WHEREAS, on June 12, 2019, MP Firehouse Square Associates L.P. submitted a request to the City for an unsecured predevelopment loan that would provide funding for predevelopment activities projected to occur prior to execution of a DDLA, the details of which are included as an exhibit to the Predevelopment Loan Agreement, which is attached to the Resolution as Exhibit A; and,

WHEREAS, it will be beneficial to the affordable housing project to receive a predevelopment loan so that MP Firehouse Square Associates, L.P. will have additional working capital available to undertake predevelopment activities necessary to progress the project to execution of a DDLA; and,

WHEREAS, the City currently owns the property at Firehouse Square, and it is therefore not possible to secure the predevelopment loan at this time; and,

WHEREAS, The Belmont City Council certified a Final Environmental Impact Report (FEIR) that evaluated the environmental impacts of the City’s 2035 General Plan, Phase I Zoning, Belmont Village Specific Plan (BVSP), and Climate Action Plan (CAP) on November 14, 2017 (the “General Plan EIR” - SCH #2016082075). The Council also made the required California Environmental Quality Act (CEQA) findings, and adopted a Mitigation Monitoring and Reporting Program (MMRP) and a statement of overriding consideration for the project on November 14, 2017; and,

WHEREAS, in accordance with CEQA Guideline Section 15162, if the lead agency reviewing a site-specific project finds that no new effects could occur or no new mitigation measures would be required compared to what was outlined in the EIR, the agency can approve the activity as being within the scope of the project covered by the program EIR, and no new environmental document would be required; and,

WHEREAS, none of the circumstances necessitating further environmental review under CEQA Guidelines Section 15162 are present for this action to approve a Predevelopment Loan Agreement for the project.

Page 3 of 3


SECTION 1. The City Council hereby authorizes an unsecured predevelopment loan in the amount of $316,000 to MP Firehouse Square Associates L.P., or to an affiliated entity or entities approved by the City Manager, to support predevelopment work associated with the development of affordable housing units for the Firehouse Square project.

SECTION 2. The funding for this loan shall be allocated from Fund 277 Affordable Housing Fees; appropriate funds were appropriated in the Fiscal Year 2020 Budget.

SECTION 3. The term of the Predevelopment Loan shall be the earliest of a maximum term of five (5) years, or shall be the earlier of five years or upon execution of a Disposition and Development Loan Agreement.

SECTION 4. The City Manager is hereby authorized to execute loan documents for the predevelopment loan and take whatever other action is necessary with respect to the loan consistent with this Resolution. The City Manager is also authorized to make non-substantial modifications to the loan agreement and exhibits, as needed.

SECTION 5. The City Council hereby finds that, in accordance with CEQA Guidelines Section 15162, none of the circumstances requiring preparation of subsequent or supplemental environmental review are present for this action.

* * *


Ayes: Noes: Absent: Abstain:

ATTEST:

City Clerk

Mayor


City Attorney

1750\04\2614283.2

PREDEVELOPMENT LOAN AGREEMENT

by and between

CITY OF BELMONT

and

MP FIREHOUSE SQUARE ASSOCIATES, L.P.

(Firehouse Square Affordable Housing Development)

TABLE OF CONTENTS Page

1750\04\2614283.2

i

ARTICLE 1 DEFINITIONS AND EXHIBITS 2

Section 1.1 Definitions.........................................................................................................2 Section 1.2 Exhibits. ............................................................................................................3

ARTICLE 2 PREDEVELOPMENT LOAN PROVISIONS 3

Section 2.1 Predevelopment Loan. ......................................................................................3 Section 2.2 Interest...............................................................................................................4 Section 2.3 Use of Funds. ....................................................................................................4 Section 2.4 Security. ............................................................................................................4 Section 2.5 Repayment of the Predevelopment Loan. .........................................................4 Section 2.6 Conditions to Funding.......................................................................................5 Section 2.7 Termination of Agreement for Infeasibility. .....................................................5 Section 2.8 Forgiveness of Predevelopment Loan in Certain Circumstances. ....................6

ARTICLE 3 DEVELOPER OBLIGATIONS 6

Section 3.1 Predevelopment Tasks and Schedule. ...............................................................6 Section 3.2 Insurance. ..........................................................................................................6 Section 3.3 Transfers. ..........................................................................................................6

ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF DEVELOPER 7

Section 4.1 Representations and Warranties. .......................................................................7

ARTICLE 5 DEFAULT AND REMEDIES 8

Section 5.1 Events of Default. .............................................................................................8 Section 5.2 Remedies. ..........................................................................................................8 Section 5.3 Right of Contest. ...............................................................................................9 Section 5.4 Remedies Cumulative. ......................................................................................9

ARTICLE 6 GENERAL PROVISIONS 9

Section 6.1 No Further Rights or Obligations. ....................................................................9 Section 6.2 Relationship of Parties. ...................................................................................10 Section 6.3 Indemnification. ..............................................................................................10 Section 6.4 No Claims. ......................................................................................................10 Section 6.5 Amendments. ..................................................................................................10 Section 6.6 Non-Liability of Lender Officials, Employees and Agents. ...........................10 Section 6.7 No Third Party Beneficiaries. .........................................................................10 Section 6.8 Notices, Demands and Communications. .......................................................10 Section 6.9 Applicable Law. ..............................................................................................11 Section 6.10 Parties Bound. ...............................................................................................11 Section 6.11 Attorneys' Fees. .............................................................................................11 Section 6.12 Severability. ..................................................................................................11

TABLE OF CONTENTS (continued)

Page

1750\04\2614283.2

ii

Section 6.13 Gender and Number. .....................................................................................12 Section 6.14 Titles. ............................................................................................................12 Section 6.15 Waivers. ........................................................................................................12 Section 6.16 Entire Understanding of the Parties. .............................................................12 Section 6.17 Survival. ........................................................................................................12 Section 6.18 Records. ........................................................................................................12 Section 6.19 Further Assurances. .......................................................................................12 Section 6.20 Multiple Originals; Counterparts. .................................................................13 Exhibit A Legal Description Exhibit B Predevelopment Budget Exhibit C Insurance Requirements Exhibit D Form of Promissory Note

Exhibit E Form of Assignment Agreement

1 1750\04\2614283.2

PREDEVELOPMENT LOAN AGREEMENT

THIS PREDEVELOPMENT LOAN AGREEMENT (the "Agreement") is entered into as of June ______ 1, 2019 (the "Effective Date"), by and between City of Belmont, a municipal corporation (the "Lender"), and MP Firehouse Square Associates, L.P., a California limited partnership (the "Developer"), with reference to the following facts, purposes and intentions.

RECITALS

A. These Recitals refer to and utilize certain capitalized terms which are defined in Article 1 of this Agreement. The parties intend to refer to those definitions in connection with the use of capitalized terms in these Recitals.

B. Lender is the owner of that certain real property of approximately 53,760 sq. ft.

designated as Firehouse Square and located on El Camino Real and Fifth Street in the City of Belmont.

C. Lender and Developer have entered into negotiations of a Disposition, Development and Loan Agreement pursuant to which Lender intends to make a loan to the Developer and ground lease a portion of the Property to the Developer to facilitate the development by the Developer of approximately sixty-six (66) units of multi-family rental housing, of which thirty-two (32) units will be made available to and occupied by low-income, very-low income and extremely-low income households, including a minimum of approximately four thousand (4,000) square feet of commercial space.

D. Pursuant to this Agreement, the Lender intends to provide the Developer the Predevelopment Loan to fund certain predevelopment activities related to the Development on the Property. The Parties intend that the Predevelopment Loan by evidenced by the Predevelopment Note and secured by the Assignment of Plans. Timely completion of such predevelopment activities are necessary to enable the Developer to prepare initial analyses and investigations of the Property and enable the Developer to apply for land use approvals for the Development.

E. In connection with the anticipated construction and operation of the proposed

Development, neither the Lender nor Developer have no obligation to enter into the Ground Lease.

NOW, THEREFORE, in consideration of the recitals hereof and the mutual promises and covenants set forth in this Agreement, the parties agree as follows:

1750\04\2614283.2 2

ARTICLE 1 DEFINITIONS AND EXHIBITS

Section 1.1 Definitions. The following capitalized terms have the meanings set forth

in this Section 1.1 wherever used in this Agreement, unless otherwise provided:

(a) "Agreement" means this Predevelopment Loan Agreement.

(b) "Assignment of Plans" means that certain assignment agreement pursuant to which the Developer assigns to the Lender the Developer's rights and obligations with respect to the Documents, substantially in the form of Exhibit D.

(c) "CEQA" means the California Environmental Quality Act and its implementing guidelines and regulations.

(d) "Default" has the meaning set forth in Section 5.1.

(e) "Developer" means MP Firehouse Square Associates, L.P., a California limited partnership.

(f) "Development" means the approximately sixty-six (66) units of multi-family rental housing and a minimum of approximately four thousand (4,000) square feet of commercial space.

(g) "DDLA" means the Disposition, Development and Loan Agreement which is under negotiation between Lender and the Developer under which the Lender would make a construction and permanent loan to Developer and lease a portion of the Property to the Developer pursuant to the Ground Lease.

(h) "Documents" means all reports, surveys, materials, architectural drawings and specifications, and any information related to the Development obtained by the Developer.

(i) "Effective Date" means the date first set forth above.

(j) "Ground Lease" means a ground lease by and between Lender, as lessor, and Developer, as lessee, that may be entered into concurrently with the closing of any construction financing, pursuant to which Developer shall lease the Property from the Lender for the purpose of constructing, developing, and operating the Development.

(k) "Indemnified Party" has the meaning set forth in Section 6.4.

(l) "Lender" means the City of Belmont.

(m) "Predevelopment Budget" means the budget including uses of funds for the predevelopment activities, attached hereto as Exhibit A.

1750\04\2614283.2 3

(n) "Predevelopment Costs" means the cost of performing the predevelopment activities as shown in the Predevelopment Budget incurred by the Developer on or after June 25, 2019.

(o) "Predevelopment Loan" means the Lender's loan to the Developer in the total principal amount of Three Hundred Sixteen Thousand Dollars ($316,000) pursuant to this Agreement, to fund certain predevelopment activities related to the Development on the Property.

(p) "Predevelopment Loan Documents" means this Agreement, the Assignment of Plans, and the Predevelopment Note.

(q) "Predevelopment Note" means the promissory note that will evidence the Developer's obligation to repay the Predevelopment Loan, substantially in the form of Exhibit B, attached hereto.

(r) "Property" means a portion of that certain real property located at approximately 53,760 sq. ft. designated as Firehouse Square and located on El Camino Real and Fifth Street in the City of Belmont to be more particularly described in the Ground Lease.

(s) "Term" means the term of this Agreement, which shall commence on the Effective Date and shall terminate on the date that is the fifth (5th) anniversary of the Effective Date; unless the Developer enters in the DDLA, then the Agreement shall terminate and the terms of the DDLA shall prevail.

(t) "Transfer" means a sale, encumbrance or other transfer of Developer's right, title, and interest in this Agreement or the Development.

Section 1.2 Exhibits. The following exhibits are attached to this Agreement and incorporated into this Agreement by this reference:

Exhibit A Predevelopment Budget Exhibit B Form of Predevelopment Note Exhibit C Insurance Requirements Exhibit D Form of Assignment Agreement

ARTICLE 2 PREDEVELOPMENT LOAN PROVISIONS

Section 2.1 Predevelopment Loan. Subject to satisfaction of the conditions set forth in

Section 2.7, the Lender shall lend to the Developer the principal sum not to exceed Three Hundred Sixteen Thousand Dollars ($316,000) for the purposes set forth in Section 2.3 of this Agreement. The Predevelopment Loan shall be evidenced by the Predevelopment Note, which shall be executed by the Developer concurrently herewith.

1750\04\2614283.2 4

Section 2.2 Interest.

(a) Subject to the provisions of Section 2.2(b) below, the outstanding principal balance of the Predevelopment Loan shall bear simple interest at the rate of zero percent (0%) per annum commencing with the date of first disbursement.

(b) In the event of a Default, interest on the Predevelopment Loan shall begin to accrue, as of the date of Default and continue until such time as the Predevelopment Loan funds are repaid in full or the Default is cured, at the default rate of the lesser of ten percent (10%), compounded annually, or the highest rate permitted by law.

Section 2.3 Use of Funds.

(a) The Developer shall use the proceeds of the Predevelopment Loan only to fund Predevelopment Costs as set forth in the Predevelopment Budget. The Developer shall not use the Predevelopment Loan for any other purpose without the prior written consent of the Lender.

(b) The Developer shall submit any revisions to the Predevelopment Budget to the Lender for approval within ten (10) days after the date Developer receives information indicating that actual Predevelopment Costs in any line item in the Predevelopment Budget vary from the costs for such line item shown on the Predevelopment Budget. The City Manager of Lender may approve or disapprove any revisions to the Predevelopment Budget to adjust line items of allow the payment of additional Predevelopment Costs as long as the total Predevelopment Budget amount does not increase.

Section 2.4 Security. As security for the Predevelopment Loan, and as part of the consideration for entering into this Agreement, the Developer hereby assigns to the Lender its rights and obligations with respect to certain agreements, plans and specifications, and approvals, pursuant to the terms of the Assignment of Plans, which shall be executed concurrently herewith. The assignments shall become effective upon an uncured event of Default of the Developer as defined in Section 5.1 below, or upon termination of this Agreement pursuant to Section 2.7 below. The Lender shall not have any obligation under any contracts or agreements assigned pursuant to the Assignment of Plans until it expressly agrees in writing to be bound by such contracts or agreements. Upon an event of Default that has not been cured pursuant to this Agreement or upon termination of this Agreement pursuant to Section 2.7 below, the Lender may use any of the foregoing assigned Documents for any purpose for which the Developer could have used them for development of the Development, and the Developer shall cooperate with the Lender to implement the Assignment of Plans and immediately deposit with the Lender for the Lender's use all the Documents.

Section 2.5 Repayment of the Predevelopment Loan.

(a) Subject to Section 2.7, and Section 2.8 below, all principal and interest, if any, on the Predevelopment Loan shall, at the option of the Lender, be due and payable upon the

1750\04\2614283.2 5

expiration of the Term or upon occurrence of a Default as defined in Section 5.1 that remains uncured after expiration of the applicable cure period.

(b) If Lender and Developer enter into the DDLA, the Predevelopment Loan shall be payable in accordance with the terms of the DDLA.

Section 2.6 Conditions to Funding. The Lender shall fund the Predevelopment Loan upon satisfaction of the following conditions:

(a) There exists no Default nor any act, failure, omission or condition that would constitute an event of Default under the Predevelopment Loan Documents.

(b) Execution by the Developer and delivery to the Lender of the Predevelopment Note and the Assignment of Plans.

(c) Receipt of a written request from the Developer setting forth the proposed use of funds and the amount of funds needed, and attaching (i) a copy of the bill or invoice covering the costs incurred or (ii) an estimate of costs to be incurred.

(d) The Developer has delivered to the Lender a copy of Developer's organizational documents and a corporate authorizing resolution authorizing Developer's execution of this Agreement, the Predevelopment Note, the Assignment of Plans, and the transactions contemplated by the Predevelopment Loan Documents.

(e) The Developer has furnished the Lender with evidence of the insurance coverage meeting the requirements of Section 3.2 below. Upon satisfaction of these conditions, the Lender shall from time to time disburse the Predevelopment Loan (or so much thereof as is required), for Predevelopment Costs, generally consistent with those shown in the Predevelopment Budget. Notwithstanding any other provisions of this Agreement, the Lender shall have no further obligation to disburse any portion of the Predevelopment Loan to the Developer following: (i) termination of this Agreement; or (ii) notification by the Lender to the Developer of a Default under the terms of this Agreement.

Section 2.7 Termination of Agreement for Infeasibility. Provided that the Developer is not in Default under this Agreement, this Agreement may be terminated by the parties under the circumstances set forth below by giving written notice of such termination to the parties:

(a) The mutual determination by the parties, in their commercially reasonable discretion, that any remediation work with respect to hazardous materials or addressing other physical conditions of the Property exceeds financing available, making the Development financially infeasible; or

(b) Prior to the expiration of the Term, the Developer does not receive commitments of all projected financial assistance or reasonable substitutions therefor, including

1750\04\2614283.2 6

grants and loans, necessary to acquire and construct the Development despite the Developer's commercially reasonable efforts to obtain such funding. This Section 2.7 is only applicable until the earlier of the date that is the fifth anniversary of the Effective Date, or the date the Developer enters into the DDLA. Following termination of this Agreement under this Section 2.7, neither party shall have any rights or obligations under this Agreement, except that the provisions of Sections 2.8 and 6.3 of this Agreement, unless otherwise limited, shall survive such termination and remain in full force and effect.

Section 2.8 Forgiveness of Predevelopment Loan in Certain Circumstances. The Lender shall forgive the Predevelopment Loan upon termination of this Agreement pursuant to Section 2.7 above provided that the Developer takes all actions necessary to implement the Assignment of Plans and deposits the Documents with the Lender. Failure of the Developer to comply with the requirements set forth above shall be a Default under this Agreement.

ARTICLE 3 DEVELOPER OBLIGATIONS

Section 3.1 Predevelopment Tasks and Schedule. The Developer shall perform the

following tasks, among others, with the proceeds of the Predevelopment Loan:

(a) Studies. The Developer shall cause preparation of environmental and market studies and appraisals, as necessary for the proposed Development.

(b) Preliminary Architect Work. The Developer shall cause preparation by an architect of a preliminary cost estimate for the construction of the Development and to work with the Developer to assess any necessary value engineering.

(c) Reports. Upon reasonable notice, as from time to time requested by the Lender, the Developer shall submit to the Lender a written progress report advising the Lender on progress made and next steps to be taken by the Developer in the performance of the predevelopment tasks.

Section 3.2 Insurance. The Developer shall, at Developer's sole cost and expense, maintain and keep in force throughout the Term, the insurance at set forth in Exhibit C, applicable to the Development in a form acceptable to the Lender with evidence of such coverage provided to the Lender within ten (10) days of execution of this Agreement, but in no event later than the initial disbursement of Predevelopment Loan funds pursuant to this Agreement. The Developer shall provide the Lender with immediate written notice in the event of cancellation or reduction of coverage of the Developer's insurance policies maintained in connection with this Agreement.

Section 3.3 Transfers. The Developer shall not cause or permit a Transfer without the prior written approval of the Lender, which, the Lender may grant or deny in its sole discretion.

1750\04\2614283.2 7

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF DEVELOPER

Section 4.1 Representations and Warranties. The Developer hereby represents and warrants to the Lender as follows:

(a) Organization. The Developer is duly organized, validly existing California limited partnership and is in good standing under the laws of the State of California and has the power and authority to own its property and carry on its business as now being conducted.

(b) Authority of Developer. The Developer has full power and authority to execute and deliver this Agreement and to make and accept the borrowings contemplated hereunder, to execute and deliver the Predevelopment Loan Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, and to perform and observe the terms and provisions of all of the above.

(c) Authority of Persons Executing Documents. This Agreement and the Predevelopment Loan Documents and all other documents or instruments executed and delivered, or to be executed and delivered by the Developer, pursuant to this Agreement have been executed and delivered by persons who are duly authorized to execute and deliver the same for and on behalf of the Developer, and all actions required under the Developer's organizational documents and applicable governing law for the authorization, execution, delivery and performance of this Agreement and the Predevelopment Loan Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, have been duly taken (to the extent such actions are required as of the date of execution and delivery of the above-named documents).

(d) Valid Binding Agreements. This Agreement and the Predevelopment Loan Documents and all other documents or instruments which have been executed and delivered by the Developer pursuant to or in connection with this Agreement constitute or, if not yet executed or delivered, will when so executed and delivered constitute, legal, valid and binding obligations of the Developer enforceable by and against it in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting the rights of creditors generally and general principles of equity.

(e) No Breach of Law or Agreement. Neither the execution nor delivery of this Agreement and the Predevelopment Loan Documents by the Developer or of any other documents or instruments executed and delivered, or to be executed or delivered by the Developer, pursuant to this Agreement, nor the performance by the Developer of any provision, condition, covenant or other term hereof or thereof, will conflict with or result in a breach of any statute, rule or regulation, or any judgment, decree or order of any court, board, commission or agency whatsoever binding on the Developer, or any provision of the organizational documents of the Developer, or will conflict with or constitute a breach of or a default under any agreement

1750\04\2614283.2 8

to which the Developer is a party, or will result in the creation or imposition of any lien upon any assets or property of the Developer, other than liens established pursuant hereto.

ARTICLE 5 DEFAULT AND REMEDIES

Section 5.1 Events of Default. Each of the following shall constitute a "Default" by

the Developer under this Agreement:

(a) Failure to Make Payment. Failure by the Developer to repay the principal and any interest on the Predevelopment Loan within ten (10) days of receipt of written notice from the Lender that such payment is due pursuant to the Predevelopment Loan Documents.

(b) Breach of Covenants. Failure by the Developer to duly perform, comply with, or observe any of the conditions, terms, or covenants of any of the Predevelopment Loan Documents, and such failure having continued uncured for thirty (30) days after receipt of written notice thereof from the Lender to the Developer or, if the breach cannot be cured within thirty (30) days, the Developer shall not be in breach so long as the Developer is diligently undertaking to cure such breach and such breach is cured within ninety (90) days; provided, however, that if a different period or notice requirement is specified under any other section of this Article 5, the specific provisions shall control.

(c) Assignments. Failure by the Developer to take all actions necessary to implement the Assignment of Plans and deposit the Documents with the Lender.

(d) Unauthorized Transfer. Transfer by the Developer other than as permitted by Section 3.3.

(e) Representation or Warranty Incorrect. Any representation or warranty of the Developer contained in this Agreement, or in any application, financial statement, certificate, or report submitted to the Lender in connection with any of the Predevelopment Loan Documents, proves to have been incorrect in any material and adverse respect when made.

Section 5.2 Remedies. The occurrence of any Default hereunder following the expiration of all applicable notice and cure periods will, either at the option of the Lender or automatically where so specified, relieve the Lender of any obligation to make or continue the Predevelopment Loan and shall give the Lender the right to proceed with any and all remedies set forth in this Agreement and the Predevelopment Loan Documents, including but not limited to the following:

(a) Acceleration of Note. The Lender shall have the right to cause all indebtedness of the Developer to the Lender under this Agreement and the Predevelopment Note, together with any accrued interest thereon, to become immediately due and payable. The Developer waives all right to presentment, demand, protest or notice of protest or dishonor. The Lender may proceed to enforce payment of the indebtedness and to exercise any or all rights

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afforded to the Lender as a creditor and secured party under the law including the Uniform Commercial Code. The Developer shall be liable to pay the Lender on demand all reasonable expenses, costs and fees (including, without limitation, reasonable attorneys' fees and expenses) paid or incurred by the Lender in connection with the collection of the Predevelopment Loan and the preservation, maintenance, protection, sale, or other disposition of the security given for the Predevelopment Loan.

(b) Assignment Agreement. The Lender shall have the right to exercise all rights under the Assignment of Plans.

(c) Specific Performance. The Lender shall have the right to mandamus or other suit, action or proceeding at law or in equity to require the Developer to perform its obligations and covenants under the Assignment of Plans or to enjoin acts or things which may be unlawful or in violation of the provisions of the Assignment of Plans.

(d) Right to Cure at the Developer's Expense. The Lender shall have the right (but not the obligation) to cure any monetary default by the Developer under a loan other than the Predevelopment Loan. The Developer agrees to reimburse the Lender for any funds advanced by the Lender to cure a monetary default by the Developer upon demand therefore, together with interest thereon at the lesser of the maximum rate permitted by law or ten percent (10%) per annum from the date of expenditure until the date of reimbursement.

Section 5.3 Right of Contest. Developer shall have the right to contest in good faith any claim, demand, levy, or assessment the assertion of which would constitute a Default hereunder. Any such contest shall be prosecuted diligently and in a manner not prejudicial to the Lender or the rights of the Lender hereunder.

Section 5.4 Remedies Cumulative. Subject to the non-recourse provisions contained in the Predevelopment Note, no right, power, or remedy given to the Lender by the terms of this Agreement or the Loan Documents is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to the Lender by the terms of any such instrument, or by any statute or otherwise against the Developer and any other person. Neither the failure nor any delay on the part of the Lender to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by the Lender of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.

ARTICLE 6 GENERAL PROVISIONS

Section 6.1 No Further Rights or Obligations. This Agreement does not obligate

either the Lender or Developer to enter the DDLA or Ground Lease or any other agreement in furtherance of the proposed Development. The parties acknowledge that this Agreement creates no rights of the Developer with respect to the Property or the proposed Development.

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Section 6.2 Relationship of Parties. Nothing contained in this Agreement shall be

interpreted or understood by any of the parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture between the Lender and Developer. Developer shall be solely responsible for its own acts and those of its agents and employees.

Section 6.3 Indemnification.

(a) Developer shall indemnify, protect, hold harmless and defend (by counsel reasonably satisfactory to the Lender) the Lender, and its City Council members, officers, directors, representatives, consultants, employees, attorneys and agents (each an "Indemnified Party") harmless against any and all claims, suits, actions, losses and liability of every kind, nature and description made against it and expenses (including reasonable attorneys' fees) which arise out of or in connection with this Agreement, including but not limited to the development, construction, marketing and operation of the Development, except to the extent such claim arises solely from the gross negligence or willful misconduct of Lender, its agents, and its employees.

(b) The provisions of this Section shall survive the expiration of the Term, and any execution of the DDLA.

Section 6.4 No Claims. Nothing contained in this Agreement shall create or justify any claim against the Lender by any person that Developer may have employed or with whom Developer may have contracted relative to the furnishing or the performance of any work or services with respect to the Property or the proposed Development.

Section 6.5 Amendments. This Agreement shall not be modified or amended in any respect, except by written instrument specifically referencing such a modification or amendment which is executed by or on behalf of the parties in the same manner as this Agreement is executed.

Section 6.6 Non-Liability of Lender Officials, Employees and Agents. No member, official, employee or agent of the Lender shall be personally liable to Developer in the event of any default or breach by the Lender or for any amount which may become due to Developer or its successor or on any obligation under the terms of this Agreement.

Section 6.7 No Third Party Beneficiaries. Nothing in this Agreement (either express or

implied) is intended to, or shall be construed to, confer upon or give any person or entity, other than the Parties hereto, any rights or remedies under or by reason of this Agreement.

Section 6.8 Notices, Demands and Communications. Formal notices, demands, and

communications between the parties shall be sufficiently given if and shall not be deemed given unless: (a) dispatched by registered or certified mail, postage prepaid, return receipt requested; (b) delivered by express delivery service, return receipt requested; (c) delivered personally; or (d) sent by electronic mail using an

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established provider of registered e-mail services with headquarters in the United States that furnishes unmodifiable proof (i) that the message was sent, (ii) that the message was delivered to the recipient's e-mail server, and (iii) of the time and date the message was delivered to the recipient. All such notices shall be delivered to the principal office of the parties as follows:

Lender: City of Belmont

One Twin Pines Lane Belmont, CA 94002 Attention: City Manager

With a copy to: City of Belmont One Twin Pines Lane Belmont, CA 94002

Attention: City Attorney

Developer: MP Firehouse Square Associates, L.P. 303 Vintage Park Drive, Suite 250

Foster City, CA 94404 Attention: Matthew O. Franklin

Such written notices, demands and communications may be sent in the same manner to such other addresses as the affected party may from time to time designate by mail as provided in this Section. Receipt shall be deemed to have occurred on the date shown on a written receipt as the date of delivery or refusal of delivery (or attempted delivery if undeliverable) except that any electronic mail received after 5:00 p.m. shall be deemed to have been received on the next Business Day.

Section 6.9 Applicable Law.This Agreement shall be governed by and construed in accordance with California law.

Section 6.10 Parties Bound. Except as otherwise limited herein, the provisions of this

Agreement shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, legal representatives, successors, and assigns. This Agreement is intended to run with the land and shall bind Developer and its successors and assigns in the Property and the Development for the entire Term, and the benefit hereof shall inure to the benefit of Lender and its successors and assigns.

Section 6.11 Attorneys' Fees. If any lawsuit is commenced to enforce any of the terms

of this Agreement, the prevailing party will have the right to recover its reasonable attorneys' fees and costs of suit from the other party.

Section 6.12 Severability. If any term of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the

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parties have been materially altered or abridged by such invalidation, voiding or unenforceability.

Section 6.13 Gender and Number. Words of any gender used in this Agreement shall be

held to include any other gender, and any words in the singular number shall be held to include the plural (and vice versa), when the sense requires.

Section 6.14 Titles. The titles and article or paragraph headings are inserted only for convenience, and are in no way to be construed as a part of this Agreement or as a limitation on the scope of the particular provisions to which they refer.

Section 6.15 Waivers. Any waiver by the Lender of any obligation or condition in this Agreement must be in writing. No waiver will be implied from any delay or failure by the Lender to take action on any breach or Default of Developer or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to Developer to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by the Lender to any act or omission by Developer shall not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for the Lender's written consent to future waivers.

Section 6.16 Entire Understanding of the Parties.The terms and provisions of this

Agreement and Predevelopment Loan Documents supersede any inconsistent terms and conditions of any term sheet, commitment letter, or similar document issued by Lender to Developer. This Agreement and the attached exhibits constitute the entire agreement of the parties with respect to the matters set forth in this Agreement. This Agreement supersedes any prior agreement and understandings between the parties as to such matters, oral or written, all of which are hereby cancelled. This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both parties had prepared it. The parties have read and reviewed this Agreement and agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party (including but not limited to California Civil Code Section 1654 as may be amended from time to time, or any other state law, or common law principle) shall not apply to the interpretation of this Agreement.

Section 6.17 Survival.All of the representations and warranties in this Agreement shall

survive until the expiration of the Term of this Agreement and payment of the Predevelopment Note, except to the extent that a representation or warranty expressly provides otherwise.

Section 6.18 Records. The outstanding principal balance of the Predevelopment Loan

and the unpaid interest accrued thereon shall at all times be ascertained from the records of Lender, which shall be conclusive evidence thereof, absent manifest error.

Section 6.19 Further Assurances. At any time upon, and from time to time upon request by Lender, Developer shall do any acts and execute and deliver any documents as may be

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reasonably requested by Lender to accomplish the purposes of this Agreement or normally required for similar loans by prudent lenders in accordance with reasonable commercial standards, including but not limited to, executing any additional assignments or documents deemed reasonably necessary by the Lender to provide further security for the Predevelopment Loan, in connection with any agreements entered into by or on behalf of the Developer in connection with the supply, development, manufacture, design, or construction of the proposed modular units in the Development.

Section 6.20 Multiple Originals; Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.

[Signatures on following page.]

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WHEREFORE, this Agreement has been entered into by the undersigned as of Effective Date. LENDER: CITY OF BELMONT, a municipal corporation By: __________________________

Greg Scoles, City Manager Dated: __________________________

DEVELOPER: MP FIREHOUSE SQUARE ASSOCIATES, L.P., a California limited partnership By: MP Firehouse Square LLC, a California limited liability company By: Mid-Peninsula Half Moon Bay, Inc.,

a California nonprofit public benefit corporation, its sole member/manager

By: ___________________________ Name: Jan M. Lindenthal Its: Assistant Secretary Dated:______________________

ATTEST: By: __________________________

Terri Cook, City Clerk Dated: __________________________

APPROVED AS TO FORM: By: __________________________

Scott Rennie, City Attorney Dated: __________________________

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EXHIBIT A

LEGAL DESCRIPTION

All that certain real property situate in the City of Belmont, County of San Mateo, State of California, being a portion of Lots 27 and 28 and all of Lots 17 through 26 of Block 3 of that certain Parcel Map entitled “Bay View Heights” filed for record in Volume 14 of Maps at pages 39 and 40, Official Records of said County. A plat showing the above described parcels is attached hereto and made a part hereof.

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EXHIBIT B

PREDEVELOPMENT BUDGET

Description

Environmental Insurance $140,000 Appraisal Costs $10,000 Market Study $8,500 Architectural Misc Other: VE/Const Estimating $16,500 Phase-1 & Phase-2 Enviro Consultants & Sampling - Langan $15,000 NEPA – AEM - Engineering-Environ Consults: Historic Review Evans & DeShazo - Engineering & Transportation Consultant – Fehr & Peers - Legal $12,500 CHPC – Consultant $10,000 Soft Cost Contingency $104,100

TOTAL $316,000

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EXHIBIT C

INSURANCE REQUIREMENTS

The Developer shall, at Developer's sole cost and expense, maintain and keep in force throughout the Term, the following insurance applicable to the Development in a form reasonably acceptable to the Lender with evidence of such coverage (which may in the form of certificates of insurance) provided to the Lender within ten (10) days of execution of the Agreement, but in no event later than the initial disbursement of Predevelopment Loan funds pursuant to the Agreement:

(a) Required Coverage. The Developer must maintain and keep in force, at the Developer's sole cost and expense, the following insurance applicable to the Development:

(1) Workers' Compensation insurance, as required by the State of California and consistent with statutory limits, and Employers' Liability coverage, with limits not less than One Million Dollars ($1,000,000) each accident for bodily injury or disease.

(2) Commercial General Liability insurance with limits not less than One Million Dollars ($1,000,000) each occurrence and Two Million Dollars ($2,000,000) aggregate combined single limit for Bodily Injury and Property Damage, including coverages for Contractual Liability, Personal Injury, Broadform Property Damage, Products and Completed Operations. Products and Completed Operations coverage must be obtained no later than completion of construction of the Development.

(3) Commercial Automobile Liability insurance with limits not less than One Million Dollars ($1,000,000) each occurrence combined single limit for Bodily Injury and Property Damage, including coverages for owned, non-owned and hired vehicles, as applicable; provided, however, that if the Developer does not own or lease vehicles for purposes of this Agreement, then no automobile insurance will be required and both Parties to this Agreement must initial this provision signifying same.

(4) Professional liability insurance related to Hazardous Materials and Hazardous Materials Laws in an amount not less than One Million Dollars ($1,000,000) each occurrence and Two Million Dollars ($2,000,000) aggregate policy limit.

(b) General Requirements.

(1) The required insurance must be provided under an occurrence form, and the Developer must maintain such coverage continuously throughout the Term. Should any of the required insurance be provided under a form of coverage that includes an annual aggregate limit or provides that claims investigation or legal defense costs be included in

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such annual aggregate limit, such annual aggregate limit must be three (3) times the occurrence limits specified above.

(2) Commercial General Liability, Commercial Automobile Liability and Property insurance policies (including builders' risk) must be endorsed to name as additional insureds the Lender and its elected officials, officers, directors, representatives, consultants, employees, and agents. The endorsement must include liability arising out of work or operations performed by or on behalf of Developer including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired or borrowed by or on behalf of Developer. For commercial general liability, the policy must be endorsed with a form at least as broad as ISO form CG 20 10, GC 11 85 or both CG 20 10 and CG 20 37 forms if later revisions used.

(3) Developer's insurance must be primary to any other insurance (including self-insurance) available to the Lender (including its elected officials, officers, directors, representatives, consultants, employees, and agents) with respect to any claim arising out of this Agreement. Any insurance maintained by the Lender shall be excess of the Developer's insurance and shall not contribute with it.

(4) No policy shall be canceled, limited, or allowed to expire without renewal until after thirty (30) days written notice has been given to the Lender by first class mail.

(5) Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the Entity. Exception may be made for the State Compensation Insurance Fund when not specifically rated.

(c) Deductibles. Any deductibles or self-insured retentions must be declared to and approved by Lender. At the option of Lender, either:

(1) Developer must reduce or eliminate such deductibles or self-insured retentions as respects the Lender and its elected officials, officers, directors, representatives, consultants, employees, and agents; or,

(2) Developer must provide a financial guarantee satisfactory to Lender guaranteeing payment of losses and related investigations, claim administration, and defense expenses.

(d) Subrogation Waiver. Developer hereby grants to Lender a waiver of any right to subrogation which any insurer of Developer may acquire against the Lender by virtue of the payment of any loss under such insurance. Developer agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation. The Workers' Compensation policy must be endorsed with a waiver of subrogation in favor of Lender for all work performed by Developer, its employees, agents, and subcontractors. This provision applies regardless of whether or not the Lender has requested or received a waiver of subrogation endorsement from the insurer.

(e) Claims Made Policies. If any required coverage is made on a claims-made form:

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(1) The "Retro Date" must be shown and must be before the date of the contract or the beginning of contract work.

(2) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

(3) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a "Retro Date" prior to the contract effective date, Developer must purchase "extended reporting" coverage for a minimum of five (5) years after completion of contract work.

(4) A copy of the claims reporting requirements must be submitted to Lender for review.

(f) Certificates of Insurance. During the Term, the Developer must provide certificates of insurance, in form and with insurers reasonably acceptable to the Lender, evidencing compliance with the requirements of this Section, and must provide complete copies of such insurance policies, including endorsements as required by this Section. However, failure to obtain the required documents before the work beginning shall not waive Developer's obligation to provide them. Lender reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time.

(g) Additional Coverage. Developer may carry, at its own expense, any additional insurance it deems necessary or prudent. If Developer maintains higher levels than the minimums shown above, Lender requires and shall be entitled to coverage for the higher limits maintained by Developer. Any available insurance proceeds in excess of the specified minimum levels of insurance and coverage shall be available to the Lender.

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EXHIBIT D

FORM OF PROMISSORY NOTE

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PROMISSORY NOTE (Predevelopment Loan – Firehouse Square)

$316,000 Belmont, California June __, 2019 FOR VALUED RECEIVED, MP FIREHOUSE SQUARE ASSOCIATES, L.P (the "Borrower"), promises to pay to CITY OF BELMONT, a municipal corporation (the "Lender"), or order, the principal sum of Three Hundred Sixteen Thousand Dollars ($316,000), or so much thereof as is advanced to Borrower pursuant to Article 2 of the Predevelopment Loan Agreement (as defined below), as provided below.

1. Loan Agreement. This promissory note (the "Note") is made pursuant to the terms of the Predevelopment Loan Agreement dated as of even date herewith, by and between the Borrower and the Lender ("Predevelopment Loan Agreement"). All capitalized terms used but not defined in this Note shall have the meanings set forth in the Predevelopment Loan Agreement.

2. Repayment Terms; Interest. The indebtedness evidenced by this Note shall be due and payable at the times and in the manner set forth in Section 2.5 of the Predevelopment Loan Agreement. The outstanding principal balance of this Note shall bear simple interest at the rate of zero percent (0%) per annum; provided however, if a Default occurs, interest on the principal balance shall accrue in accordance with Section 4 of this Note.

3. Security. As the security for this Note, Borrower has assigned to the Lender its rights and obligations with respect to certain documents, approvals, and agreements as provided in the Assignment of Plans.

4. Acceleration Pursuant to Default. As more fully set forth in the Predevelopment Loan Agreement, upon the occurrence of an event of Default in the Predevelopment Loan Agreement, the Lender shall have the right to declare all of the principal immediately due and payable, which amount shall bear interest at the lesser of ten percent (10%) per annum, or the maximum amount permitted by law, from the expiration of the applicable cure period for the Default to the date of repayment in full of the disbursed principal amount of the Predevelopment Loan and any interest due thereon. All payments received shall be applied first to the accrued interest and second to the principal outstanding. Neither acceptance by the Lender of the payments provided for herein nor any failure by the Lender to pursue its legal and equitable remedies upon Default shall constitute a waiver of the Lender's right to require prompt payments when due of all disbursed principal and interest owing or to declare a Default and exercise all of its rights under this Note and the Predevelopment Loan Agreement.

5. No Offset. The Borrower hereby waives any rights of offset it now has or may hereafter have against the Lender, its successors and assigns, and agrees to make the payment

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called for herein in accordance with the terms of this Note.

6. Waivers.

(a) Borrower hereby waives diligence, presentment, protest and demand, and notice of protest, notice of demand, notice of dishonor and notice of non-payment of this Note. Borrower expressly agrees that this Note or any payment hereunder may be extended from time to time, and that Lender may accept further security or release any security for this Note, all without in any way affecting the liability of Borrower.

(b) Any extension of time for payment of this Note or any installment hereof made by agreement of Lender with any person now or hereafter liable for payment of this Note must not operate to release, discharge, modify, change or affect the original liability of Borrower under this Note, either in whole or in part.

7. Manner and Place of Payment. All payments of principal and interest shall be payable in lawful money of the United States of America at the office of the Lender as set forth in the Predevelopment Loan Agreement or at such other address as the Lender may provide to the Borrower by notice in accordance with the Predevelopment Loan Agreement.

8. Non-Recourse Provisions. Except as provided below, the Borrower shall not have any direct or indirect personal liability for payment of the principal of, or interest on, the Predevelopment Loan, and the sole recourse of the Lender with respect to the principal of, or interest on, the Note shall be to the collateral described in the Assignment of Plans; provided, however, that nothing contained in the foregoing limitation of liability shall: (a) limit or impair the enforcement against all such security for the Note of all the rights and remedies of the Lender thereunder, or (b) be deemed in any way to impair the right of the Lender to assert the unpaid principal amount of the Note as demand for money within the meaning and intent of Section 431.70 of the California Code of Civil Procedure or any successor provision thereto. The foregoing limitation of liability is intended to apply only to the obligation for the repayment of the principal of, and payment of interest on the Note, except as hereafter set forth; nothing contained herein is intended to relieve the Borrower of its obligation to indemnify the Lender under Section 6.3 of the Predevelopment Loan Agreement, or Borrower's liability for (i) Borrower's fraud or willful misrepresentation or (ii) to the extent applicable, the misappropriation by Borrower of any proceeds under any insurance policies or awards resulting from condemnation or the exercise of the power of eminent domain or by reason of damage, loss or destruction to any portion of the Property.

9. Assignment. The Lender's rights under this Note may be assigned by the Lender as permitted under the Loan Agreement.

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10. Miscellaneous Provisions.

(a) All notices to Lender or Borrower are to be given in the manner and at the addresses set forth in the Predevelopment Loan Agreement, or to such addresses as Lender and Borrower may therein designate.

(b) Borrower promises to pay all costs and expenses, including reasonable attorneys' fees, incurred by Lender in the enforcement of the provisions of this Note, regardless of whether suit is filed to seek enforcement.

(c) This Note is governed by the laws of the State of California.

(d) The times for the performance of any obligations hereunder are to be strictly construed, time being of the essence.

(e) The Predevelopment Loan Documents, of which this Note is a part, contain the entire agreement between the parties as to the Predevelopment Loan. This Note may not be modified except upon the written consent of the parties.

IN WITNESS WHEREOF, Borrower is executing this Promissory Note as of the day and

year first above written.

BORROWER:

MP FIREHOUSE SQUARE ASSOCIATES, L.P., a California limited partnership

By: MP Firehouse Square LLC, a California limited liability company

By: Mid-Peninsula Half Moon Bay, Inc., a California nonprofit public benefit corporation, its sole member/manager

By: ___________________________ Name: Jan M. Lindenthal Its: Assistant Secretary

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EXHIBIT E

ASSIGNMENT AGREEMENT

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ASSIGNMENT OF AGREEMENTS, PLANS AND SPECIFICATIONS, AND APPROVALS

(Firehouse Square) FOR VALUE RECEIVED, the undersigned, MP FIREHOUSE SQUARE ASSOCIATES, L.P., a California limited partnership (the "Developer"), hereby assigns and transfers to the CITY OF BELMONT (the "Lender"), all of its right, title and interest in and to:

(1) All consulting, architectural, design, engineering, supply, pre-construction, and construction contracts and development agreements, and any and all amendments, modifications, supplements, addenda and general conditions thereto (collectively "Agreements"), heretofore or hereafter entered into by any Contractor (as defined below);

(2) All studies and analyses, surveys, plans and specifications, shop drawings,

working drawings, amendments, modifications, changes, supplements, general conditions and addenda thereto (collectively "Studies, Plans and Specifications") heretofore or hereafter prepared by any Contractor (as defined below); and

(3) All land use approvals, building permits, and other governmental approvals of any

nature obtained for the Development (collectively, the "Land Use Approvals"). This Assignment of Agreements, Plans and Specifications, and Approvals (the "Assignment") is made pursuant to the terms of the Predevelopment Loan Agreement, dated as of even date herewith, by and between the Borrower and the Lender ("Predevelopment Loan Agreement"). All capitalized terms used but not defined in this Assignment shall have the meanings set forth in the Predevelopment Loan Agreement. The Property with respect to which the Predevelopment Loan has been made is more particularly described in Exhibit A attached to the Predevelopment Loan Agreement. For purposes of this Assignment, the term "Contractor" means any consultant, architect, construction contractor, engineer or other person or entity entering into Agreements with the Developer and/or preparing Studies, Plans and Specifications for the Developer with respect to the Development. The Developer hereby irrevocably appoints the Lender as its attorney-in-fact (which agency is coupled with an interest) to, upon the occurrence of a Default (after notice and opportunity to cure) or an event which, with notice or the passage of time or both would constitute a Default (after notice and opportunity to cure) under and as defined in the Predevelopment Loan Agreement or if the Lender acquires the Property, demand, receive, and enforce any and all of the Developer's rights with respect to the Studies, Plans and Specifications, Agreements and Land Use Approvals, and perform any and all acts in the name of the Developer or in the name of the Lender with the same force and effect as if performed by the Developer in the absence of this Assignment. The Developer represents and warrants to the Lender that no previous assignment(s) of its rights or interest in or to the Studies, Plans and Specifications, Agreements, and/or Land Use Approvals, has or have been made, and the Developer agrees not to assign, sell, pledge, transfer, mortgage, or hypothecate its rights or interest therein (without prior written approval of the Lender) so long as the Lender holds or

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retains any security interest under the Predevelopment Loan Agreement. Developer further represents and warrants that all Agreements, Studies, Plans and Specifications and Land Use Approvals for the Property are and will be in the name of Developer and that Developer has the full power and authority to execute this Assignment and perform its obligations hereunder. This Assignment is made to secure: (1) payment to the Lender of all sums now or hereafter owing under the Predevelopment Note dated as of the date hereof made by the Developer. to the order of the Lender, and any and all additional advances, modifications, extensions, renewals and amendments thereof; and (2) payment and performance by the Developer of all its obligations under the Predevelopment Loan Agreement. This Assignment shall be governed by the laws of the State of California, except to the extent that Federal laws preempt the laws of the State of California, and the Borrower consents to the jurisdiction of any Federal or State Court within the County of San Francisco having proper venue for the filing and maintenance of any action arising hereunder. This Assignment shall be binding upon and inure to the benefit of the heirs, legal representatives, assigns, and successors-in-interest of the Developer and the Lender; provided, however, this shall not be construed and is not intended to waive the restrictions on assignment, sale, transfer, mortgage, pledge, hypothecation or encumbrance by the Developer contained in the Predevelopment Loan Agreement. Executed by the Developer on ______________, 2019.

DEVELOPER:

MP FIREHOUSE SQUARE ASSOCIATES, L.P., a California limited partnership

By: MP Firehouse Square LLC, a California limited liability company

By: Mid-Peninsula Half Moon Bay, Inc., a California nonprofit public benefit corporation, its sole member/manager

By: ___________________________ Name: Jan M. Lindenthal Its: Assistant Secretary

1750\04\2615615.1

ARCHITECT'S/ENGINEER'S CONSENT The undersigned architect and/or engineer (collectively referred to as "Architect") hereby consents to the foregoing Assignment of Agreements, Plans and Specifications, and Approvals ("Assignment"), of which this Architect's/Engineer's Consent ("Consent") is a part, and acknowledges that there presently exists no unpaid claims presently due to the Architect except as disclosed to the Agency arising out of the preparation and delivery of the Plans and Specification to the Developer and/or the performance of the Architect's obligations under the Agreements, as the term "Agreements" is defined in the Assignment. Architect agrees that if, at any time, the Lender shall become the owner of said Property, following a Default or the termination of the Predevelopment Loan Agreement, or, pursuant to its rights under the Predevelopment Loan Agreement, elects to undertake or cause the completion of construction of the Development on any of the Property, in accordance with the Plans and Specifications, and gives Architect written notice of such election; then so long as the Architect has received, receives or continues to receive the compensations called for under the Agreements, the Lender may, at its option, use and rely on the Plans and Specifications for the purposes for which they were prepared, and Architect will continue to perform its obligations under the Agreements for the benefit and account of the Lender in the same manner as if performed for the benefit or account of the Developer in the absence of this Assignment, so long as the Lender agrees to perform all of the obligations of the owner as outlined in the contract. Architect further agrees that, in the event of a breach by the Developer of the Agreements, or any agreement entered into with Architect in connection with the Plans and Specifications, so long as the Developer's interest in the Agreements and Plans and Specifications is assigned to the Lender, Architect will give written notice to the Lender at the address shown below of such breach. The Lender shall have thirty (30) days from the receipt of such written notice of Default to remedy or cure said Default; provided, however, nothing herein shall require the Lender to cure said Default or to undertake completion of construction of the Development. Architect warrants and represents that it/he/she has no knowledge of any prior assignment(s) of any interest in either the Plans and Specifications and/or the Agreements. Except as otherwise defined herein, the terms used herein shall have the meanings given them in the Assignment or the Predevelopment Loan Agreement, as applicable. Executed by the Architect on ___________. Address of Lender:

Architect: By: _________________________ Its: _________________________ Address of Architect:

STAFF REPORT Meeting Date: June 25, 2019


Staff Contact: John Jones, Information Services Director, 637-2970, [email protected]

Agenda Title: Resolution Authorizing a Three Year Microsoft Enterprise Agreement with

SoftwareONE, Inc.


Recommendation

Adopt a resolution authorizing the City Manager, to issue the purchase orders required for payment of a

three-year Microsoft Enterprise Agreement with SoftwareONE, Inc., with an annual payment of

$84,486.53.

Background

The City has standardized on Microsoft products for its desktop and server operating systems and office

applications (word processing, spreadsheet, presentation, and user database) for many years, and has

participated in the Microsoft Enterprise Agreement (EA) program since 1999. The EA provides the

Microsoft licenses for software used by all City staff including, but not limited to: Windows operating

system, Windows Server operating system, Exchange e-mail system, Microsoft Office suite, and other

Microsoft products.

The EA provides best overall pricing based on volume discounting, and includes Software Assurance (SA)

for product upgrades during the three-year period at no additional cost. Software Assurance also allows

for simplified licensing management through the EA True-Up process that provides a simple, effective

way to account for any change in licensed products over the course of each year, helping to ensure that

licensing is current and accurate. In addition, Software Assurance includes Microsoft planning services,

training vouchers, and technical support 24 hours a day, 7 days a week.

The current EA expires on June 30, 2019, and needs to be renewed before that date to be considered an

on-time renewal, to avoid additional fees.

Analysis

Currently, Microsoft Windows 10 Operating System and Microsoft Office Suite 2016 are being used

Citywide, providing City computer users with the basic software systems for daily operations. In addition,

Microsoft SQL databases and servers are being used to run many of the systems and tools utilized by both

City staff and the public. Some of these systems include: the City’s Permitting System (TrakIt),

Automated Dispatching System (RIMS), Document Management System (Questys), Asset Management

System (Lucity), Financial System (GP) and Budgeting Tool (BI360).

While evaluating the renewal of the EA, staff reviewed the requirements of the City with regard to savings,

flexibility to respond to rapidly changing technology, and streamlined license management. The EA

Page 1 of 3

Page 2 of 3

Staff Report - MS 3YR EA

enables the City to deploy a common IT platform across the City and allows the mix of Microsoft cloud

services and on-premise software. As such, there was need for some additions and enhancements to be

made in this Enterprise Agreement, not available in the prior agreement:

• Previous Enterprise Agreements were based on a count of devices utilized by the City, but as more

users utilize smartphones and other devices from remote locations to access Email and other

Microsoft product, the licensing model in the proposed EA is a simplified per user model that

allows each user to use the Microsoft Office suite on up to five laptops, five tablets, and five mobile

devices.

• To meet the aforementioned needs of users, the current EA will allow the City to move technology

resources to the cloud, including: Email (Exchange), SharePoint Online, OneDrive, and

OfficeWebApps. Note: The use of the Microsoft Enterprise Cloud Suite (ECS) license does not

commit the City to use Office 365; The City can continue to use all the currently existing Microsoft

Office systems.

• Additional security tools and product offerings are now available as part the proposed EA, including Advanced Threat Protection (ATP), to address ever-increasing threats to Email and

network systems.

California Department of General Services, Procurement Division, has obtained group pricing for the

acquisition of Microsoft software enterprise licensing and maintenance upgrades, and has an approved

short list of Microsoft Account Resellers. This ensures that the pricing has been pre-negotiated, and

deemed fair and reasonable according to the cooperative purchasing agreement set forth by the

Procurement Division. Based on the existing relationship with SoftwareONE, who is an approved

Microsoft Account Resellers, the City requested a quote for a three year enterprise agreement.

Staff recommends SoftwareONE as the reseller for this Enterprise Agreement due to their proven track

record in handling the City’s Enterprise Agreements in the past. The total cost of the three year enterprise

agreement is $253,460. The annual payment amount will be $84,486.53 each year for the next three years.

Alternatives

1. Deny recommended purchase.

2. Refer matter back to staff for more information, or additional options.

Attachments

A. Resolution

B. Quoted rates from vendor

Page 3 of 3

Staff Report - MS 3YR EA

Fiscal Impact

The source of funding for this payment is to be found in Account #573-1-301-8359, in the adopted FY

2019/20 budget. Funding for the second and third year of annual software license costs will be

requested as part of the City’s annual budget process in subsequent years.






No Impact/Not Applicable Funding Source Confirmed:

Page 1 of 1


A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT

AUTHORIZING A THREE YEAR MICROSOFT ENTERPRISE AGREEMENT WITH

SOFTWAREONE, INC. IN THE AMOUNT OF $253,460.

WHEREAS, the current Citywide Microsoft Enterprise Agreement is expiring; and,

WHEREAS, the City of Belmont desires the purchase of a Citywide Microsoft Enterprise

Agreement, to provide all City computer users with basic software for daily use; and,

WHEREAS, SoftwareONE, Inc. is qualified to provide Microsoft Enterprise Agreements.


SECTION 1. The City Manager, is authorized to issue annual purchase orders to

SoftwareONE, Inc., for a total of 3 years, per the unit costs quoted in the attached Enterprise

Agreement with an annual payment of $84,456.53.

* * *


Ayes:

Noes:

Abstain:

Absent:

ATTEST:

City Clerk

Mayor


City Attorney

Invoice Address

City Of BelmontAttn Finance DepartmentOne Twin Pines LnBELMONT, CA 94002

Shipping Address


License Address


Quote US-QUO-750349

Description Language Amount

Pos. No. Manufacturer Lic. Mod. Disc-Lev. Format Version OS Qty. Unit PriceSales Tax (USD)

Renewal EA #

Coverage Date: 7/1/2019-6/30/2020

1 Year

10 AAA-11924 Office 365 Gov E3 from SA ShrdSvr per User AL

Government Monthly Subscription

Microsoft IEA GOV LEVEL D SUB NON-SPEC Non-Specific 160 169.40 0.00 27,104.00

20 L999.00001.ML EntMobandSecE3FromSAGCC ShrdSvr ALNG SubsVL MVL PerUsr 160 67.93 0.00 10,868.80

AAD-32906

30 AAD-32907 Enterprise Mobility and Security E3 Full GCC Per User AL

Monthly Subscription

Microsoft IEA LEVEL D SUB NON-SPEC Non-Specific 35 87.03 0.00 3,046.05

40 AAA-11894 Office 365 Gov E3 ShrdSvr per User AL

Government Monthly Subscription

Microsoft IEA GOV LEVEL D SUB NON-SPEC Non-Specific 35 199.27 0.00 6,974.45

50 076-01912 Project AL

Government 1 Year SA Add Prod

Microsoft IEA ADD G LEVEL D MNT NON-SPEC Non-Specific 5 108.92 0.00 544.60

60 359-00961 SQL User CAL only AL

1 Year SA Add Prod

Microsoft IEA ADD LEVEL D MNT NON-SPEC Non-Specific 185 31.81 0.00 5,884.85

70 810-04760 SQL Server Enterprise AL


Microsoft IEA ADD G LEVEL D MNT NON-SPEC Non-Specific 1 1,309.05 0.00 1,309.05

80 7JQ-00343 SQL Server Enterprise Core 2 Lic AL


DateCustomer No.Your ReferenceAccount ManagerYour Contact PersonE-MailOur Tax ID

06/11/2019US-SCU-128138Renewal 1 YR option 2 (VG)-RevisedMiles Allareastatestore [email protected]




Microsoft IEA ADD G LEVEL D MNT NON-SPEC Non-Specific 2 2,094.79 0.00 4,189.58

90 228-04433 SQL Server Standard AL


Microsoft IEA ADD G LEVEL D MNT NON-SPEC Non-Specific 3 136.77 0.00 410.31

100 7NQ-00292 SQL Server Standard Core 2 Lic Core Lic AL


Microsoft IEA ADD G LEVEL D MNT NON-SPEC Non-Specific 4 546.29 0.00 2,185.16

110 9EP-00203 System Center DataCenter Core 16Lic Core Lic AL



120 P3U-00001 Visio Online Plan 2 GCC ShrdSvr per User AL

Government Monthly Subscription Add Prod

Microsoft IEA ADD G LEVEL D SUB NON-SPEC Non-Specific 2 127.05 0.00 254.10

130 MQM-00001 Azure Active Directory Premium P1 GCC per User AL


Microsoft IEA ADD G LEVEL D SUB NON-SPEC Non-Specific 45 50.80 0.00 2,286.00

140 3NS-00003 Exchange Online Plan 2 Gov ShrdSvr per User AL



150 7MS-00001 Project Online Professional Gov per User AL



160 KV3-00368 Windows Enterprise AL

Government 1 Year SA

Microsoft IEA GOV LEVEL D MNT NON-SPEC Non-Specific 160 41.33 0.00 6,612.80

170 6VC-01254 Windows Remote Desktop Services User CAL only AL



180 9EA-00273 Windows Server DataCenter Core 16Lic Core Lic AL



190 9EM-00267 Windows Server Standard Core 16Lic Core Lic AL



Total Excl. Tax 84,486.53

Total Annual Billing 2 YR = $84,486.53

Coverage Date: 7/1/2020-6/30/2021

Total Annual Billing 3 YR = $84,486.53

Coverage Date: 7/1/2021-6/30/2022

Total USD excl. Tax 84,486.53

Tax 0.00

Total USD incl. Tax 84,486.53

Thank you for your request for quote.

This offer is non-binding. Prices are subject to change if supplier prices or currency values fluctuate.

Unless expressly otherwise agreed upon by the parties, by placing an order with SoftwareONE you hereby acknowledge and understand you will be bound by our terms and conditions at

www.softwareone.com, and the placement of your order represents your agreement thereto. If Customer is required by law to withhold any tax from any amount payable, the amount payable

Quote US-QUO-750349Page 2/3



will be increased so that after making all required withholdings, SoftwareONE receives an amount equal to the amount it would have received had no such withholdings been made.

Tax Exemption Art. 90, 2nd paragraph, letter a of Swiss VAT Law

Payment Terms 30 Days net

Shipping Method Electronic Software Delivery

Quote valid until 06/30/19

Prices are based on 30 Days net, FOB SoftwareONE. Shipping and Handling and applicable Sales Tax are additional. All products are non-returnable unless otherwise provided for

by the Manufacturers Reseller Return Policy.

CONFIDENTIAL INFORMATION: This Quote, and any attachment is intended only for the person or entity to which it is addressed, and contains confidential and/or privileged

information. Any review, retransmission, dissemination or other use of this information to persons or entities other than the intended recipient is prohibited.

Quote US-QUO-750349Page 3/3

StaffReportAFSCMEMOURevised.2019


Staff Contact: Cora Dino, Human Resources, 650-637-2988, [email protected]

Agenda Title: Revised Memorandum of Understanding between the City of Belmont and

AFSCME


Recommendation

Adopt a resolution approving a revised Memorandum of Understanding between the City of Belmont and

the American Federation of State, County, and Municipal Employees (AFSCME).

Background/Analysis

Council approved a resolution approving a Memorandum of Understanding between AFSCME and the

City on August 28, 2018 and then approved a revised Memorandum of Understanding including the salary

schedule on May 28, 2019. Recently, it was discovered that there were errors in the calculation. This

item corrects errors in the salary schedule affecting two job classifications. The City has communicated

to the AFSCME Representative of the correction to the salary schedule.

Alternatives

1. Take No Action

2. Provide Staff with Alternative Direction

Attachments

A. Resolution with attached draft MOU.

Fiscal Impact

No Impact/Not Applicable

Funding Source Confirmed: Captured in Current FY 19/20 budget.







STAFF REPORT

Page 1 of 2


A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT APPROVING

A REVISED MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF

BELMONT AND THE AMERICAN FEDERATION OF STATE, COUNTY, AND

MUNICIPAL EMPLOYEES

WHEREAS, on August 28, 2018, the City Council approved a resolution approving a

Memorandum of Understanding between the American Federation of State County and Municipal

Employees (AFSCME) and the City; and,

WHEREAS, on May 28, 2019, the City Council approved a resolution approving a revised

Memorandum of Understanding between the American Federation of State County and Municipal

Employees (AFSCME) and the City; and,

WHEREAS, the City discovered errors in the pay schedule of two job classes; and,

WHEREAS, staff has corrected the errors and is reflected in the revised pay schedule; and,


SECTION 1. The revised Memorandum of Understanding presented to the City Council

and attached hereto as Exhibit “A” is approved.

SECTION 2. The City Manager is authorized to execute and implement the

Memorandum of Understanding on behalf of the City.

SECTION 3. The City Manager is authorized, in consultation with AFSCME, to make

minor amendments to the Memorandum of Understanding that are consistent with the intent of

this resolution and that do not materially affect the terms of the Memorandum of Understanding.

* * *

Page 2 of 2


Ayes:

Noes:

Absent:

Abstain:

ATTEST:

City Clerk

Mayor


City Attorney

Exhibit A

AMENDED

MEMORANDUM OF UNDERSTANDING Between

CITY OF BELMONT

And

AFSCME

January 1, 2019 – December 31, 2021

Approved: August 28, 2018 RESO NO. 2018-073 Amended: May 28, 2019 RESO NO. 2019-055

Amended: June 25, 2019

i

Table of Contents

MEMORANDUM OF UNDERSTANDING

BETWEEN

LOCAL 829/CITY OF BELMONT

January 1, 2018 - December 31, 2021

Section 1. Recognition ........................................................3

Section 2. Union Membership ...................................................3

Section 3. No Discrimination ....................................................4

Section 4. Representation Rights ................................................5

Section 5. Salary Plan .........................................................5

Section 6. Probationary Period ..................................................8

Section 7. Transfer, Promotion, Employment Lists, Reclassification ......................9

Section 8. Layoff and Reemployment .............................................10

Section 9. Resignation and Reinstatement .........................................13

Section 10. Reallocation of Position ..............................................13

Section 11. Performance Evaluation Procedure ......................................13

Section 12. Hours of Work, Overtime, Premium Pay ..................................14

Section 13. Holidays ..........................................................16

Section 14. Vacation Leave .....................................................17

Section 15. Sick Leave .........................................................17

ii

Section 16. Other Leaves .......................................................19

Section 17. Health and Welfare Plans .............................................21 D. Retirees after July 1, 2001 ...........................................24 F. Retiree Dental ....................................................25

Section 18. Safety ............................................................25

Section 19. Disciplinary Actions .................................................26

Section 20. Grievance Procedures ................................................26

Section 21. Special Provisions ..................................................28

Section 22. Economic Hardship ..................................................29

Section 23. Past Practices ......................................................29

Section 24. Separability of Provisions .............................................30

Section 25. Duration ..........................................................31

MONTHLY SALARY SCHEDULE .................................................32

SIDE LETTER OF AGREEMENT ..................................................35 Side Letter: for Public Works and Parks Uniforms ..............................35

City of Belmont/AFSCME MOU 2019-2022

3

MEMORANDUM OF UNDERSTANDING

BETWEEN

LOCAL 829, COUNCIL 57

AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL-CIO

AND THE

CITY OF BELMONT

Local 829, Council 57, American Federation of State, County and Municipal Employees, AFL-CIO, and representatives of the City of Belmont have met and conferred in good faith regarding wages, hours and other terms and conditions of employment of employees in the representation unit listed in Appendix "A", have exchanged freely information, opinions and proposals and have endeavored to reach agreement on all matters relating to the employment conditions and employer-employee relations of such employees. This Memorandum of Understanding is entered into pursuant to the Meyers-Milias-Brown Act (Government Code Sections 3500-3510) and has been jointly prepared by the parties. This Memorandum of Understanding shall be presented to the Belmont City Council as the joint recommendation of the undersigned parties for salary and employee benefit adjustments for the period commencing January 1, 2019 and ending December 31, 2021. Section 1. Recognition 1.1 City The City Manager, or any person or organization duly authorized by the City Manager, is

the representative of the City of Belmont, hereinafter referred to as the "City", in employer-employee relations.

1.2 Union Local 829, Council 57, American Federation of State, County and Municipal Employees,

AFL-CIO, hereinafter referred to as the "Union" or "AFSCME 829" is recognized as the majority representative, as provided in the City's Employer-Employee Relations Ordinance, for all employees assigned to the classifications set forth in Appendix "A", which is attached hereto and made a part hereof.

Section 2. Union Membership 2.1 Dues Deduction The Union may have the regular dues of its members within the representation unit deducted

from employees' pay checks. Employees may authorize such dues deduction only for the organization certified as the

recognized employee organization of the unit to which such employees are assigned. Dues deduction shall continue: (1) until the transfer of the employee to a unit represented by another employee organization or (2) until such authorization is revoked, in writing, by the employee in accordance with the provisions of this Section.

Current dues deduction may not be revoked during the term of this Memorandum of

Understanding executed by the City and the Union, provided, however, that during the period of up to sixty (60) days immediately preceding the expiration of this Memorandum of Understanding or during the period of up to sixty (60) days immediately preceding the


4

expiration of any successor Memorandum of Understanding, employees shall be able to revoke current dues deduction by notification to the Union.

Amounts deducted and withheld by the City shall be transmitted to the officer designated in

writing by the Union as the person authorized to receive such funds, at the address specified. The employee's earnings must be sufficient, after all other required deductions are made, to cover the amount of the deductions herein authorized.

When an employee is in a non-pay status for an entire pay period, no withholding will be

made to cover that pay period from future earnings nor will the employee deposit the amount with the City which would have been withheld if the employee had been in pay status during that period. In the case of an employee who is in a non-pay status during a part of the pay period, and the salary is not sufficient to cover the full withholding, no deduction shall be made. In this connection, all required deductions have priority over the Union dues deduction.

The Union shall indemnify, defend and hold the City harmless against any claim made and

against any suit initiated against the City on account of the check-off of Union dues. In addition, the Union shall refund to the City any amounts paid to it in error upon presentation of supporting evidence.

2.2 Dues Deduction for PEOPLE Employees may voluntarily elect to have contributions, at a minimum of two dollars ($2.00)

per month, deducted from their paychecks under procedures prescribed by the City for the Public Employees Organized to Promote Legislative Equality Fund (PEOPLE of AFSCME). Such deductions shall be made only upon signed authorization from the employee and shall continue until such authorization is revoked in writing.

2.3 Communications with Employees

The Union shall be allowed by a City department, in which it represents employees, use of available bulletin board space for communications having to do with official Union business provided such use does not interfere with the needs of the department.

2.4 Advance Notice Except in cases of emergency, reasonable advance written notice shall be given to the

Union if it is affected by any ordinance, rule, resolution or regulation directly relating to matters within the scope of representation proposed to be adopted by the City Council, by any board or commission of the City, or by any department, as the Union shall be given the opportunity to meet with such body prior to adoption. In cases of emergency when the City management determines that an ordinance, rule, resolution or regulation must be adopted immediately without prior notice or meeting with the Union, City management shall provide such notice and opportunity to meet at the earliest practicable time following the adoption of such ordinance, rule, resolution or regulation.

2.5 List of Unit Employees The City shall furnish the Union with the names, classifications and date of hire of employees

newly assigned to the unit and employees leaving the unit. Section 3. No Discrimination There shall be no discrimination because of race, creed, color, national origin, sex, sexual

orientation, age, physical or mental disability, marital status, medical condition, religion, political activity, or legitimate union activities against any employee or applicant for employment by the Union or by the City.


5

Section 4. Representation Rights 4.1 Employee Representatives for Grievances The Union may designate a reasonable number of City employees as official employee

representatives to assist in the handling of grievances. The Union shall notify the City Manager in writing of the individuals so designated. Alternates may be designated to perform this function during the absence or unavailability of the official employee representative.

The official employee representative may be relieved from the employee's assigned work

duties by the employee's supervisor to investigate and process grievances initiated by other employees within the same work area. The use of time for this purpose shall be reasonable and shall not interfere with the performance of services as determined by the City.

4.2 Access to Work Locations Reasonable access to employee work locations shall be granted officers of the Union and

business agents for the purpose of processing grievances or contacting members of the Union concerning business within the scope of representation. Such officers or representatives shall not enter any work location without the consent of the City Manager or the City Manager's designated representative. Access shall be restricted so as not to interfere with the normal operations of the department or with established safety or security requirements.

Solicitation of membership and activities concerned with the internal management of the

Union, such as collecting dues, holding membership meetings, campaigning for office, conducting elections and distributing literature shall not be conducted during working hours unless approved in advance by the City Manager or the City Manager's designated representative.

Whenever an employee is required to meet with a supervisor or other management official

and the employee reasonably anticipates that such meeting will involve questioning leading to disciplinary action, the employee shall be entitled to have an official employee representative present upon request. It is not the intention of this provision to allow the presence of an official employee representative during the discussion of an employee's performance evaluation.

4.3 Access to Personnel Files An employee or, an employee's representative, on presentation of written authorization from

the employee, shall have access to the employee's personnel file upon request during the City's normal working hours. At or before time of placement employees shall be given a copy of all letters or memoranda concerning the employee's job performance which are to be placed in the employee's permanent personnel record.

The employee shall be entitled to respond in writing to any such letters or memoranda with

which the employee disagrees and to have the response attached to such letters or memoranda in the employee's personnel file.

Upon the employee’s written request, a written counseling or written warning, along with any response thereto, will be removed from the employee’s personnel file after three (3) years from the date of issuance, provided that no related conduct has occurred in the intervening period.

Section 5. Salary Plan 5.1 Salaries Salary ranges for represented classifications shall be as set forth in Appendix “A,” which is

attached hereto and made a part hereof.


6

Effective the first full pay period in January 2019, the rate of pay for all job classes shall be increased by three and eight tenths of one percent (3.8%). Effective the first full pay period in January 2020, the rate of pay for all job classes shall be increased by three and one half percent (3.5%). Effective the first full pay period in January 2021, the rate of pay for all job classes shall be increased by three percent (3.0%).

5.2 Application of Wage Rates Employees shall be assigned a salary or wage by the City Manager within the range

established for the appropriate position under the salary schedule. The minimum rate generally shall be assigned to employees upon original appointment; however, the City Manager may, when circumstances warrant it, appoint, reinstate or promote at other than the minimum rate, but at not more than the maximum rate.

5.3 Advancement Within Salary Range No salary advancement shall be made so as to exceed any maximum rate established in

the salary schedule for the employee's position. No increase in salary shall be automatic merely upon completion of a specified period of service. All increases shall be based on merit as established by a record of the employee's performance and shall require a recommendation of the department head and approval by the City Manager. In case of an unsatisfactory employee performance evaluation, an increase in salary may be withheld. An employee who is denied an increase in salary may discuss such denial with the employee's department head and the City Manager. The decision of the City Manager shall be final.

An employee shall be eligible for advancement by the City Manager to the next higher step

in the employee's salary range following the satisfactory completion of the first year of service, and after additional one-year periods thereafter. If the City Manager deems a special salary step adjustment is justified, an employee may receive such salary advancement earlier.

The employee's salary anniversary date will change when: A. The employee receives a step increase less than one (1) year after the employee's

date of hire or less than one (1) year after the employee's prior step increase; B. The employee is promoted to a class with a higher maximum salary; C. The employee is demoted to a class with a lower maximum salary; or

D. The employee takes a leave of absence for any reason in excess of two (2) weeks.

Whenever the salary schedule for a classification is revised, each incumbent in a position

to which the revised schedule applies shall be paid at the same step in the revised range as the step at which the employee was paid in the previous range.

5.4 Salary after Promotion or Demotion When an employee is moved from one class to a class with a higher maximum salary

(promotion), the employee shall be appointed at the minimum step of the salary range in the new class, provided, however, that the employee receives a minimum five percent (5%) increase in salary upon such promotion.

When an employee is moved from one class to a class with a lower maximum salary

(demotion), that employee's compensation shall be adjusted to the salary prescribed for the


7

class to which the employee is demoted, and the specific rate of pay within the range shall be determined by the City Manager, whose decision shall be final.

When an employee is demoted in accordance with Section 8.1 (Layoff Procedure), the

employee shall be placed at the step of the salary range prescribed for such lower class that most nearly approximates the salary the employee was receiving, provided, however, that such salary does not exceed the maximum rate for such lower class.

5.5 Acting Assignment Pay When an employee has been assigned in writing by the department head or designated

representative to perform the work of a permanent position having a different classification and being paid at a higher rate, and if the employee has worked in such classification for more than five (5) consecutive workdays after each such written assignment by the department head, the employee shall be entitled to payment for the higher classification. Such payment shall be at the rate for the first step of the higher classification or at the step which is not less than five percent (5%) more than his/her current pay. Such payment shall be retroactive to the first day of the assignment and continue during the period of temporary assignment. The rate paid shall not exceed the top step of the assigned classification. Assignment of individuals to such upgraded position cannot be changed in successive five (5) workday periods to preclude payment of the higher rate as set forth herein.

5.6 Pay Period Employees shall be paid semi-monthly. All paychecks will be delivered through either direct

deposit or a City pay card system. 5.7 Certification Pay

A. Employees in the maintenance or lead maintenance classifications with department head approval, who earn and maintain a Qualified Applicator (QAC) certification, are eligible to receive a one hundred dollar ($100) annual lump sum payment upon certification and maintenance of the certificate.

B. Employees in the building inspection classifications with department head approval,

who earn and maintain approved certifications provided below are eligible to receive a monthly payment of fifty dollars ($50) per certification. The City’s maximum payment shall not exceed one hundred and fifty dollars ($150) per month.

1. Building, Plumbing, Electrical and Mechanical Inspector

2. Building Plans Examiner 3. Certified Access Specialist 4. Electrical Plans Examiner 5. Plumbing Plans Examiner 6. Mechanical Plans Examiner 7. Certified Building Official

C. Employees in the maintenance or lead maintenance classifications who are required to have and maintain a California Class B driver’s license with tanker endorsement are eligible to receive a $100 annual lump sum payment upon certification and maintenance of their California Class B driver’s license.

D. Employees in the maintenance or lead maintenance classifications, with department

head approval, who earn and maintain a Playground Safety Inspection certificate, are eligible to receive a one hundred dollar ($100) annual lump sum payment.

E. Employees in the maintenance or lead maintenance classifications, with department

head approval, who earn and maintain a Backflow Prevention certificate, are eligible to receive a one hundred dollar ($100) annual lump sum payment.


8

F. Employees in the maintenance or lead maintenance classifications, with department head approval, who earn and maintain a Pesticide Control Advisor certificate, are eligible to receive a one hundred dollar ($100) annual lump sum payment.

G. Employees in the Electrician, Lead Maintenance, Senior Maintenance or

Maintenance classifications who earn the following California Water Environment Association (CWEA) certificate(s) are eligible to receive the following: (Employees are eligible to receive one certificate pay at a time regardless of how many certificates an employee possess. CWEA certificate pay is capped at $250 per month):

Collections System Maintenance Grade 1 - $50 per month





Employees in the Classification of Electrician are the only classification eligible for certification pay for both CWEA and PM Electrical/Technologist.

Plant Maintenance (PM) Electrical/Instrumental Technologist Grade 1 - $50

per month

Plant Maintenance (PM) Electrical/Instrumental Technologist Grade 2 -

$100 per month

Plant Maintenance (PM) Electrical/Instrumental Technologist Grade 3 -

$200 per month

Certificate pay shall be paid monthly providing there is no lapse in certification. Employees are responsible for providing their supervisor updated certifications.

Certification pay will be provided upon submission of the documentation and approval by the department head.

H. Employees in the Code Enforcement Officer classification with department head

approval, who earn and maintain a California Association of Code Enforcement Officers (CACEO) certification, are eligible to receive a monthly payment of one hundred dollar ($100) upon certification and maintenance of the certificate.

5.8 Bilingual Pay

When a department head, with the approval of the Human Resources Director, designates an assignment as requiring substantial bilingual skills, an employer in the designated assignment, who has first demonstrated proficiency in the required language that is acceptable to the department head and Human Resources Director, shall be eligible to receive a pay premium of $100 a month. The department head and Human Resources Director retain full discretion to designate or conclude bilingual assignments. The City retains its management right to assign designees to perform bilingual services for other City departments.

Section 6. Probationary Period 6.1 Duration All original and promotional appointments shall be tentative and subject to a probationary

period of not less than twelve (12) months from the date of probationary appointment or promotion. Such probationary period may be extended if the employee has been on leave of absence for any reason in excess of a total of thirty (30) calendar days during such


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probationary period. The probationary period may also be extended for up to three (3) months in the event of performance shortcomings documented in a performance evaluation.

Employees who transfer to another position in the same classification shall not be required

to undergo a new probationary period in the same position into which transferred provided the employee has completed the employee's probationary period in the classification at the time of transfer.

6.2 Promotional Probation An employee who has previously completed the requisite probationary period and who is

rejected during a subsequent probationary period for a promotional appointment shall be reinstated to the former position from which the employee was appointed. If the employee is discharged during the promotional probationary period, the employee shall not be entitled to such reinstatement rights.

Section 7. Transfer, Promotion, Employment Lists, Reclassification 7.1 Transfer No employee shall be transferred to a position for which the employee does not possess

the minimum qualifications. Upon approval by the City Manager, an employee may be transferred by the department head at any time from one position to another position in a comparable class. For transfer purposes, a comparable class is one with the same maximum salary, involves the performance of similar duties and requires substantially the same basic qualifications. If the transfer involves a change from one department to another, both department heads must consent thereto, unless the City Manager orders the transfer for purposes of economy or efficiency. Transfer shall not be used to effectuate a promotion, demotion, advancement or reduction, each of which may be accomplished only as provided in the City's rules and regulations. Such transfer shall not result in the loss to the employee of any accumulated leave, such as vacation and sick leave, nor shall it affect the employee's length of service with the City of Belmont.

7.2 Promotion Insofar as is consistent with the best interest of the City, all vacancies in the competitive

service shall be filled by promotion from within the competitive service, after a promotional examination has been given and a promotional list established.

7.3 Time Off for Interview or Examination Interviews for the City of Belmont jobs and promotional examinations scheduled by the City

during an employee’s regular working hours may be taken without loss in compensation. 7.4 Reclassification Reasonable, advance written notice shall be given to the Union of any proposed

reclassification or elimination of a position or classification covered by this Memorandum of Understanding. In the event such reclassification results in the position or classification being moved into a different bargaining unit, the City will offer AFSCME the opportunity to meet about such change.

7.5 Employee-Initiated Reclassification Requests An employee may request in writing a reclassification of his/her position during the month

of January of each year. Requests shall be processed through the employee’s Department Head and submitted to Human Resources.

Requests must include:

o Detailed justification for the request o Supervisor’s and/or Department Head’s review and comment.

Human Resources will respond to this request within ninety (90) calendar days of the

request by notice to the employee; however there can be a thirty (30) day extension by


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mutual agreement. If meetings with the employee are required, the employee may request representation.

If the City determines a reclassification of the position is warranted the reclassification shall

be handled through the regular budgetary process and shall be effective the beginning of the following fiscal year.

If the City denies the reclassification request, the City will provide the employee the reasons

for the denial in writing. This provision is not subject to the grievance procedure. All other procedures pertaining to employee requests for reclassification shall be in

accordance with the procedures outlined in Section 10.6 of the Personnel Rules and Regulations.

Section 8. Layoff and Reemployment 8.1 Layoff Whenever in the judgment of the City Council it becomes necessary in the interest of the

economy or because the necessity for a position no longer exists, the City Council may abolish any position of employment in the city service, or reduce the number of hours for any position in the city service, and the employee holding such position of employment may be laid off, either partially or completely, without taking disciplinary action.

8.2 Notice of Layoff Except in cases of emergency, the City Manager shall notify, in writing, the employee and

the union of the proposed action and reasons therefore at least twenty-eight (28) calendar days in advance of such action. A copy of this Section 8, Layoff and Reemployment, shall be attached to the written notice. The City will offer to meet and confer with the union regarding the impacts of specific layoffs.

8.3 Grievance of Layoff An employee who receives notice of a specific action under the layoff procedure and

believes that the layoff procedure has not been correctly applied in the employee's case, may appeal as provided in the grievance procedure. The decision itself to lay off shall be specifically excluded from the grievance or any other appeal procedure.

8.4 Order of Layoff Employees shall be laid off in inverse order of their length of service in a classification.

Length of service is the amount of combined regular or probationary service in the classification affected and any former classification that the employee may have held with the City. If two or more employees have the same length of service, the order of layoff will be determined by the City Manager.

8.5 Displacement Rights

A. An employee who has received a notice of layoff may elect, in lieu of layoff, to be reassigned to a position in a lateral or lower related classification within his/her department, provided that in order to displace the employee with less service the laid off employee must, in the opinion of the Human Resources Director, meet the minimum qualifications of the classification into which he/she is displacing. The laid off employee may also displace a less senior employee in another department, provided that the laid off employee has held regular status in that classification and performed in a satisfactory manner.

B. If the employee is unable to displace an employee with less seniority as described

in (A) he/she may accept a voluntary transfer or demotion to a vacant position in a lateral or lower related classification in which no previous service has been rendered


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provided that, in the opinion of the Human Resources Director, the employee meets the minimum qualifications of the classification. If two (2) or more employees request to transfer or demote into the same vacant position as described herein, the employee with the highest seniority, as defined in this Section 8, will have his/her request granted.

C. Employees requesting to exercise their right to displace into a classification as

provided in (A) or (B) above must make such request to the Human Resources Director in writing within five (5) calendar days of their receipt of written notice of layoff. Failure to comply with the deadline provided herein shall be deemed a waiver of the displacement rights provided in this Section 8. Should the Human Resources Director determine that the laid off employee does not meet the minimum qualifications for the classification into which the employee requests to be reassigned, such decision may be appealed to the City Manager. The decision of the City Manager may be appealed to an Adjustment Board comprised of one person designated by the union/association, one person designated by management, and a third person who shall be selected by the first two Adjustment Board members. The decision of the Adjustment Board shall be final and not subject to further appeal through the grievance process.

D. Employees laid off as a result of another employee’s exercise of displacement

rights shall be entitled to a minimum notice period of fourteen (14) calendar days.

E. When an employee chooses to displace into a position in a lateral or lower related classification, said employee must accept the salary, hours and working conditions of the position. If the employee’s salary prior to displacement is within the salary range of the lateral or lower related classification into which the employee is displacing, the employee will retain the salary held prior to displacing, even if that places the employee’s salary between steps in the new salary range. If the employee’s salary prior to displacing is above the top of the range of the lateral or lower related classification, the employee’s salary will be placed at the top of the salary range of the lateral or lower related classification. Employees who accept a voluntary transfer or demotion as described in (B) shall serve a probationary period of twelve (12) months.

F. If an employee chooses to displace into a position in a lateral or lower classification

within the same department, he/she shall have the right to displace first into the highest lateral or lower classification. If an employee chooses to displace into a position in another department, if such employee held regular status in more than one classification, he/she shall have the right to displace first into the highest classification in which regular status was previously held. Highest classification shall be defined as the classification with the highest top step in the salary plan in effect at the time of layoff.

G. Seniority for the purpose of exercising the displacement rights provided in this

Section is defined as the total cumulative number of years of probationary and regular service with the City of Belmont beginning with the worker's first date of employment with the City.

H. Employees may elect to be laid off in lieu of displacement. Accepting such a layoff

does not affect the employee's reemployment rights under this Agreement.

I. At the time of a layoff, employees who were previously members of the Bargaining Unit (e.g., who subsequently promoted out of the unit) shall have all the rights described in Section 8.


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J. A part-time regular employee may only displace into a part-time position in a lateral or lower related classification in accordance with the provisions of this Section.

K. A full-time regular employee may displace into a full-time or part-time position in a

lateral or lower related classification in accordance with the provisions of this Article.

8.6 Reemployment

A. The names of employees laid off shall be placed on a reemployment list from most senior to least senior. The employee with the greatest seniority on the reemployment list, including those who exercised their displacement rights or who took a voluntary demotion, shall be offered reinstatement in a vacant classification for which said employee meets the minimum qualifications. In the event the employee refuses two (2) offers of reemployment, said employee's name shall be removed from the reemployment list. The employee’s name shall not be removed from the reemployment list if said employee refuses reemployment into a classification that is lower than the highest classification held by the employee. In hiring for a vacant position in a classification, such reemployment list shall take precedence over all other employment lists.

B. Any employee who accepts an offer of reemployment to the highest classification

he/she would have been entitled to at the time of layoff shall have his/her name removed from the reemployment list.

C. Any employee who is laid off and is subsequently eligible for reemployment shall

be notified by the City in writing, sent by certified mail to the last address given the City by the employee, of any vacancies for which he/she is eligible. Employees so notified shall respond within seven (7) working days of the date notice was sent. Copies of all such reemployment notices together with a listing of employees to whom they were sent shall be sent to the Union.

D. The names of employees who exercise their right to displace into a classification

as provided in Section 8.5(A) or (B), and the names of employees whose layoff results in unemployment from the City shall remain on a reemployment list for a period of one (1) year. This one (1) year period shall commence upon the date the employee begins his/her service in the lower/lateral classification into which he/she displaced as defined in Section 8.5(A) or (B), or upon the date unemployment from the City begins.

E. Any employee rehired as defined in Section 8.6 shall serve a probationary period

of no more than twelve (12) months, unless the reemployed employee has prior service in the classification into which he/she is being rehired.

8.7 Abolition of Position The provisions of this Section 8 shall apply when an occupied position is abolished. 8.8 Contracting of Services The City will give the Union no less than sixty (60) days notice of its intention to contract for

services which are being performed by employees covered by this Memorandum of Understanding. The parties will meet and confer in an expedited manner over the impact such contracting of services may have on said employees, and the Union may propose and the City will consider reasonable alternatives to contracting of City services.


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Section 9. Resignation and Reinstatement 9.1 Resignation Any employee wishing to resign from employment in good standing shall file with the

department head at least two (2) week's notice of an intention to leave City service unless a shorter period of time is agreed upon between the employee and the department head. The written resignation shall state the effective date and reasons for leaving.

9.2 Reinstatement A regular or probationary employee who has resigned in good standing may be reinstated

by the City Manager, upon recommendation of the department head, to a vacant position of the same class as the previous position held within a period of one (1) year from the effective date of such resignation. A new probationary period may be required.

Section 10. Reallocation of Position An employee in a position reallocated to a lower classification shall have the right of: (1)

transferring to a vacant position in the employee's present classification in the same or another department, provided the head of the department into which the transfer is proposed agrees, or (2) continuing in the same position in the lower classification at a Y rate of pay when the incumbent's pay is higher than the maximum step of the schedule for the lower classification. Such Y rate of pay shall be discontinued when the incumbent ceases to occupy the position or whenever the maximum pay of the salary assigned to the lower classification equals or exceeds such Y rate. The Y rate provisions of this Section shall not apply to layoffs, demotions, or other personnel actions resulting in an incumbent moving from one position to another.

Section 11. Performance Evaluation Procedure 11.1 Process Performance reports on each employee shall be filed by the department head at regular

intervals with the City Manager in such form as the City Manager shall prescribe. Reports of performance shall be governed by the following:

A. The originating department shall send a form for each employee to the appropriate

department head on the anniversary date each year and the department head shall complete and return the form within thirty (30) days.

B. Performance reports shall be required every two (2) months for employees during

their probationary period. C. When the department head or supervisor observes a change in an employee's work

performance sufficient to cause a change in the department head's overall rating, a report shall be filed.

D. All performance reports must be reviewed by the affected employee who shall sign

the report acknowledging that the employee's performance evaluation has been reviewed with the department head or supervisor.

E. All performance reports shall be signed by the City Manager before being placed in

an employee’s personnel file. 11.2 Performance Report Meeting With Employee Before submitting the report to the City Manager, each department head or supervisor who

has prepared a performance report must meet and discuss the report with the employee. The employee and the department head or supervisor both must sign the evaluation prior to submitting to the City Manager. The employee’s signature acknowledges receipt of the report. Each employee shall receive a copy of the report. If an employee is dissatisfied with


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the evaluation, following the meeting with the department head or supervisor, the employee can file an appeal with the City Manager for review of the report.

11.3 Appeals of Performance Report Within five (5) days after the performance report meeting between the employee and

supervisor or department head, an employee may request, in writing, a review of the report by a reviewer. The City and the Union will mutually agree on a reviewer. Within five (5) days after said review, the reviewer shall either accept the original report, a modified report, or cause a new report to be prepared which shall be entered into the personnel file as the official report. The official report shall bear the reviewer’s signature.

11.4 Use of Performance Reports Performance reports shall be considered by the City Manager in determining salary

increases and decreases, the advisability of transfers, demotions and dismissals, and in promotional examination. Performance reports are highly confidential and are available only to the Council and appropriate department heads and affected employees.

11.5 Non-Grievability This Section 11 shall not be subject to the grievance procedure in Section 20 of the

Memorandum of Understanding. Section 12. Hours of Work, Overtime, Premium Pay 12.1 Hours of Work The standard workweek for employees occupying full-time positions consists of forty (40)

hours per week unless otherwise specified by the City. Should the City elect to change the regular work schedule, the affected employee(s) will be provided thirty (30) days notice of such change, unless an alternate timeframe is mutually agreed upon. An alternate work schedule (9/80 or 4/10) may be approved by the City Manager. An employee requesting such an alternate schedule must submit a plan to the department head describing in detail the specific schedule and the anticipated impact on the City’s operations. The employee’s request will be responded to in writing within thirty (30) days of the date of submittal. The City will remain open for business Monday through Friday from 8:00 AM until 5:00 PM and will continue to provide a high level of service to the citizens of Belmont. The decision of the City Manager will be final and not subject to the Grievance Procedure.

12.2 Overtime Authorized work performed in excess of forty (40) hours in one (1) week shall constitute

overtime. All compensable overtime must be authorized by the department head or the department head's designated representative in advance of being worked. If prior authorization is not feasible because of emergency conditions, a confirming authorization must be made on the next regular working day following the date on which the overtime was worked. An employee required to work in excess of the regularly scheduled hours of work (normally 8 hours, or 10 hours for employees working a 4/10 work schedule) shall be compensated for each overtime hour so worked at the rate of one and one-half (1-1/2) times the employee's regular straight-time rate of pay. An employee required to work any overtime between the hours of 12:00 Midnight and their regularly scheduled start time shall be compensated for each such overtime hour at the rate of two (2) times the employee's regular straight-time rate of pay. An employee required to work in excess of four (4) continuous hours of overtime on an emergency basis will receive a ten dollar ($10.00) meal reimbursement allowance. Payment for overtime worked will be either cash or compensatory time off upon mutual agreement of the department head and the employee subject to the availability of funds and with consideration of the employee's current accumulation of compensatory time off. Employees may accumulate up to a maximum cap of one hundred sixty (160) hours of compensatory time off; overtime earned after the compensatory time off cap of one hundred


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sixty (160) hours has been reached will be paid as overtime pay at the rate of one and one-half (1 ½) times the employee’s rate of pay.

The above provision for overtime shall be granted in accordance with state and federal law. 12.3 Scheduled Workday Employees covered by this Memorandum of Understanding will not have a scheduled

workday reduced in whole or in part to compensate for time which they are ordered to work in excess of another regularly scheduled workday. An employee and his/her supervisor may agree to adjust the employee’s regularly scheduled workday in lieu of overtime compensation so long as such regularly scheduled workday adjustment occurs within the employees designated work week. The City may require a temporary shift change that is scheduled in advance within the normal hours of work.

The City's policy is that employees are to receive one (1) fifteen (15) minute rest period for

each four (4) hours worked. The Union recognizes that under extenuating circumstances which are considered the exception to practice, an employee may not be able to take said rest period.

12.4 Call Back An employee recalled to work outside of and not continuous with regularly scheduled hours

shall be paid a minimum of one (1) hour at the rate of one and one-half (1-1/2) times the employee's regular rate of pay.

12.5 Stand-By Duty An employee assigned to be on stand-by to answer calls outside of regularly scheduled

hours shall receive two (2) hours pay at the employee's regular rate of pay, or two (2) hours of compensatory time off, for each week night of stand-by time.

An employee assigned to be on stand-by on Saturday or Sunday shall receive three (3)

hours' pay at the employee's regular rate of pay, or three (3) hours of compensatory time off, for each day assigned.

An employee assigned to be on stand-by on any holiday shall receive six (6) hours' pay at

the employee's regular rate of pay, or six (6) hours of compensatory time off. There shall be two (2) employees designated to be on stand-by, one (1) of whom shall be

designated as "primary" and the other shall be designated as "secondary". The primary stand-by employee shall be called first, and the secondary stand-by employee shall be called when, in the opinion of the primary stand-by employee, the secondary stand-by employee is needed.

12.6 Back-Up Duty Back-up assistance needed for call-outs will be drawn from other employees on the sewer

stand-by list. For each response to a call-out, the back-up employee shall receive one-seventh (1/7) credit toward eight (8) hours of compensatory time off. The minimum period for which an employee shall be called out shall be one (1) hour. These credits shall accumulate until any individual maintenance employee who responds in a back-up capacity has assisted the primary maintenance employee assigned to on-call status for seven (7) call hours, at which time the back-up employee will be credited with eight (8) hours of compensatory time off.

12.7 Utilization of Compensatory Time Off Compensatory time off will be taken at a time agreeable to the employee and the department

head.


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Section 13. Holidays 13.1 Authorized Holidays The holidays to be observed in this City are as follows and employees shall not be required

to be on duty unless the department head has so indicated:

New Years Day January 1

Martin Luther King Jr.’s Birthday Third Monday in January

President’s Day Third Monday in February

Memorial Day Last Monday in May

Independence Day July 4

Labor Day First Monday in September

Columbus Day Second Monday in October

Veteran's Day November 11

Thanksgiving Day Fourth Thursday in November

Friday after Thanksgiving

Christmas Day December 25

In addition to the above-listed holidays, employees shall receive two (2) Floating Holidays,

to be taken, after one (1) year of service, at any time mutually convenient to the department head and the employee and every day proclaimed by the President of the United States, Governor of California, or Mayor of this City as a public holiday. Floating Holidays will only be usable as time off and may not be paid out upon separation from City service. Floating Holidays must be used in the calendar year in which they are accrued and may not be carried over into a subsequent calendar year.

When a holiday falls on Sunday, the following Monday shall be observed. When a holiday

falls on Saturday, the previous Friday shall be observed. If the holiday falls on an employee's regularly scheduled day off, compensatory time shall be granted.

Either the day before Christmas or the day before New Year's Day shall be a holiday, the

specific day to be determined by mutual agreement between the employee and the department head, and the employee shall not be required to be on duty unless the department head has so indicated.

13.2 Work Performed on a Holiday Any regular full-time employee who is required to work on any of the holidays specified in

Section 13.1 shall be paid as follows:

If an employee works on a holiday that falls on a regularly scheduled work day, such employee shall receive eight (8) hours of holiday pay, plus one and one-half (1.5) times the employee’s regular straight time pay rate for all hours actually worked on the holiday, and one (1.0) times compensatory time off for all hours actually worked on the holiday, for a total of two and one-half (2.5) times all hours actually worked on the holiday. For example, if an employee works three (3) hours on a holiday that falls on a regularly scheduled work day, the employee will receive eight (8) hours of holiday pay, plus three (3) hours of time and one-half pay, plus three (3) hours of straight time compensatory time.

If an employee works on a holiday that falls on a regular day off, such employee shall receive eight (8) hours of holiday credit, plus one and one-half (1.5) times the employee’s regular straight time pay rate for all hours actually worked on the holiday, and one (1.0) times compensatory time off for all hours actually worked on the holiday, for a total of two and one-half (2.5) times all hours actually worked on the holiday. For example, if an employee works three (3) hours on a holiday that falls on a regular day off, the employee will receive eight (8) hours of holiday credit, plus three (3) hours of time and one-half pay, plus three (3) hours of straight time compensatory time.


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13.3 Holiday During Vacation In the event any of the holidays specified in Section 13.1 above occurs while an employee

is on vacation, the holiday shall not be charged to vacation. Section 14. Vacation Leave 14.1 Vacation Allowance A. Regular full-time employees shall be entitled to vacation leave as follows:

Length of Service Days of Vacation Hours Accrued Per Month of Service 1 through 4 years 10 days 6-2/3 hours

5 years 15 days 10 hours

6 years 16 days 10-2/3 hours


8 years 18 days 12 hours


10 or more years 20 days 13-1/3 hours

15 or more years 22 days 14-2/3 hours

B New Lateral Appointments

With City Manager approval, the City can offer new lateral hires vacation allowance and /or accrual at a rate higher than that specified above. The vacation allowance/accrual cannot be higher than that provided for 15 years of service in the current MOU.

14.2 Vacation Accumulation In the event an employee is unable to take all of the vacation leave to which the employee

is entitled in a calendar year, the employee shall be permitted to accumulate the unused portion to the employee's credit, provided that the accumulated time does not exceed two times the employee’s annual allowance, unless an extension is granted by the City Manager due to exceptional circumstances. Employees who have reached their accrual limit will not accrue any additional vacation unless and until their accrued vacation is below their accrual limit.

14.3 Pay Upon Termination Employees who leave City service, shall be paid straight-time salary for all accrued vacation

leave earned on or before the effective date of termination. 14.4 Vacation Scheduling The time during a calendar year at which an employee may take the employee's vacation

shall be determined by the department head with due regard for the wishes of the employee and the needs of the City.

Section 15. Sick Leave 15.1 Accrual and Usage Sick leave, with pay, shall be granted to all full-time regular and probationary employees.

Sick leave shall not be considered as a right which an employee may use at the employee's discretion, but shall be allowed only in case of necessity and actual personal or family sickness or disability. In order to receive compensation while absent on sick leave, the employee shall notify the employee's immediate supervisor prior to the time set for beginning the employee's daily duties. An employee taking sick leave may be required to file a physician's certificate or personal affidavit with the supervisor or department head stating the cause of the absence.

For purposes of computing sick leave, one (1) day shall be considered as eight (8) working

hours. In the event that one or more City holidays fall within a period of an employee's


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illness on sick leave, such holiday shall not be charged against the employee's sick leave balance. Sick leave shall be earned at the rate of one (1) day for each calendar month of service.

A maximum of eighty (80) hours of accumulated sick leave may be taken each calendar year in case an employee's presence is required elsewhere because of sickness or disability affecting the employee's immediate family. The immediate family shall consist of the spouse, children, parents, brothers, sisters, domestic partner or dependents of the employee.

15.2 Accumulation Unused sick leave shall be accumulated to a total of not more than two hundred (200) days.

An employee who is off on sick leave shall be entitled to accumulate earned sick leave while using the employee's previously earned sick leave. An employee who is on leave without pay shall not accumulate sick leave credits.

15.3 Workers' Compensation - Integration with Sick Leave In the event that the employee chooses to integrate the employee's accumulated unused

sick leave with Workers' Compensation and Workers' Compensation payments cover all or part of the period during which sick leave is paid, the sum of the two shall not exceed the sick leave benefit payable for said period, and the unused portion of accumulated sick leave will continue to be credited to the employee.

15.4 Pay for Unused Sick Leave Upon Separation from City Service

Retirement Upon retirement, employees with an unused sick leave balance may exercise one or both of the following options:

Convert all or a portion of their unused accrued sick leave days at the time of retirement to additional PERS service credit at the rate of 0.004 year(s) of service for each day of unused sick leave.

Receive compensation for unused accrued sick leave days, up to a maximum of one

hundred eighty (180) days, based on years of service as follows:

Years of Service Percentage of Sick Leave Days 5 to 9 years 25% 10 or more years 50%

For the purposes of this section, retirement will be defined as receiving a PERS retirement benefit. Death Upon the death of an employee actively employed by the City, the City shall compensate the employee’s PERS designated beneficiary(ies) with a percentage of the deceased employee’s accrued unused sick leave based on years of service as follows:

Years of Service Percentage of Sick Leave Days 5 to 9 years 25% 10 or more years 50%

15.5 Temporary Employees Temporary full-time employees who are appointed to a regular position in the same

classification, without a break in service with the City in excess of two (2) weeks, shall have credited to their sick leave balance eight (8) hours of sick leave for each full month of temporary service with the City up to a maximum of forty-eight (48) hours.


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Section 16. Other Leaves 16.1 Bereavement Leave

The City will provide up to three (3) days paid bereavement leave for immediate family (including City’s expanded immediate family) per calendar year. Employees can take additional bereavement leave by using other accrued paid time including sick leave, vacation and compensatory time.

16.2 Industrial Disability Leave of Absence Any regular full-time employee of the City who has suffered a disability caused by illness or

injury arising out of and in the course of the employee's employment, as defined by the Workers' Compensation laws of the State of California, shall be entitled to disability leave while so disabled without loss of compensation for the period of such disability to a maximum of eighty (80) hours.

During the period the employee is paid by the City, the employee shall endorse to the City

any benefit payments received as a result of Workers' Compensation insurance coverage. The City reserves the right to withhold payment of any disability benefits until such time as it is determined whether or not the illness or injury is covered by Workers' Compensation.

The benefits of sick leave and disability leave shall be mutually exclusive and no sick leave

benefits may be used for the purposes specified under this Section 16.2. If the employee's disability caused by illness or injury arising out of and in the course of the

employee's employment extends beyond the eighty (80) hours described above, the employee may integrate the employee's unused sick leave, vacation leave, and compensatory time-off accruals with the Workers' Compensation payments provided that the sum of the Workers' Compensation payments and paid leave does not exceed the employee's regular rate of pay for said period.

Industrial disability leave may not exceed twelve (12) months and ten (10) days unless

extended by the City Manager whose decision shall be final. The City shall continue to pay the insurance premiums for the employee when an employee

is on a leave of absence without pay as a result of an industrial disability in accordance with this Section.

16.3 Non-Industrial Disability Leave Without Pay An employee who is disabled by reason of illness or injury which is not job-incurred may be

granted a leave of absence without pay so long as such disability continues and is substantiated by a physician's statement. Such leave shall not exceed twelve (12) months. Unpaid leave may be granted only after the employee has used the entire employee's accrued sick leave. At the employee's option, accrued vacation and compensatory time off may be used during the period of such leave, but in no case shall the combination of paid and unpaid leave exceed twelve (12) consecutive months.

Family and Medical Disability leave shall be granted in accordance with applicable state and

federal law. The City shall continue to pay the insurance premiums for the employee when an employee

is on a leave of absence without pay as a result of a non-industrial disability in accordance with this Section.

16.4 Personal Leave of Absence The City Manager may grant a permanent employee a leave of absence without pay or

benefits for a period not to exceed ninety (90) days. Request for such leave shall be in writing and shall be approved in advance by the City Manager in writing.


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16.5 Limited Duty Upon the advice of the employee's physician, an employee may request transfer to less

strenuous or hazardous duties within the employees' classification which the employee is qualified to perform. Such duty shall not result in the transfer, layoff or other displacement of any other employee covered by this Agreement.

16.6 Jury Duty An employee summoned to jury duty shall inform the employee's supervisor and, if required

to serve, may be absent from duty with full pay; provided, however, the employee must remit to the City all fees received except those specifically allowed for mileage and expenses.

16.7 Military Leave Military leave shall be granted in accordance with the provisions of State and Federal law.

All employees entitled to military leave shall give the appointing authority an opportunity within the limits of military regulations to determine when such leave shall be taken.

16.8 Seniority Rights and Salary Adjustments While On Leave of Absence Seniority begins on date of hire. After successful completion of probation, seniority

continues to accrue until termination. If termination is voluntary or if the employee is on an approved leave of absence, seniority will not accrue during the period of the leave or the voluntary termination. If the employee returns to employment within 12 months of taking leave or voluntary termination, seniority will resume accrual upon date of return.

Authorized leave of absence without pay which exceeds two (2) weeks for: (1) leave of

absence for personal reasons, or (2) leave of absence for non-industrial illness or injury, or (3) leave of absence for industrial illness or injury shall not be included in determining salary adjustments. Authorized leave of absence without pay which exceeds thirty (30) calendar days for: (1) leave of absence for personal reasons, or (2) leave of absence for non-industrial illness or injury, or (3) leave of absence for industrial illness or injury shall not be included in determining seniority rights.

16.9 Catastrophic Leave Program A permanent employee may be eligible to receive donations of paid leave other than sick

leave, to be included in the recipient employee's sick leave balance if she/he has suffered a catastrophic illness or injury which prevents the employee from being able to work for an extended period of time. Catastrophic illness or injury is defined as a critical medical condition considered terminal or an illness or injury causing long-term major physical impairment or disability.

A. The recipient employee, recipient employee's family, or other person designated in

writing by the recipient employee must submit a request to the City Manager. B. The recipient employee is not eligible so long as she/he has paid leaves available,

however, the request may be initiated prior to the anticipated date leave balances will be exhausted.

C. A medical verification of eligibility for FMLA (Section 16.10) must be provided by the

recipient employee. D. A recipient employee is eligible to receive ninety (90) working days of donated time

per employment. Requests for exceptions to this limit may be submitted to the City Manager whose decision shall be final.

E. Donations shall be made in full-day increments of eight (8) hours, and are

irrevocable. The donor employee may donate vacation up to any amount so long as the donor employee retains at least eighty (80) hours of vacation. Compensatory time may also be donated without limit on the amount. Sick leave may not be donated.


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F. Time donated will be converted from the type of time donated to sick leave and

credited to the recipient employee's sick leave balance on an hour-for-hour basis and shall be paid at the rate of pay of the recipient employee. All sick leave provisions will apply.

G. Time donated in any pay period may be used in the following pay periods. No

retroactive donations will be permitted. H. The determination of the employee's eligibility for Catastrophic Sick Leave donation

shall be at the City Manager's sole discretion and shall be final and non-grievable. 16.10 Family Care Leave and Paid Family Leave

The City will provide Family Care Leave in accordance with the Family Medical Leave Act (FMLA), California Family Rights Act (CFRA), and the Personnel Rules and Regulations. The City will provide Paid Family Leave, a component of State Disability Insurance (SDI), in accordance with state legislation.

Section 17. Health and Welfare Plans 17.1 Hospital and Medical Care Benefits The City will participate in the Public Employees’ Medical and Hospital Care Act (PEMHCA)

medical plans, as administered by PERS.

The City shall provide each eligible employee who participates in a City sponsored medical insurance plan with an employer contribution towards the purchase of medical insurance benefits. The amount of this employer contribution shall not exceed the minimum contribution required under the Public Employees’ Hospital and Medical Care Act (PEMHCA).

17.2 Flexible Benefits Plan Design The City shall offer an Internal Revenue Code Section 125 Plan which contains the

components of premium conversion, health care reimbursement account, dependent care reimbursement account, transportation expenses and cash option.

An employee may use Flexible Benefit Plan funds toward the cost of employer-provided

health insurance for the employee and eligible dependents. An employee may use Flexible Benefit Plan funds that are not used for medical plan

premiums as contributions into the health care reimbursement account, dependent care reimbursement account, and transportation expenses, or cash option in accordance with Plan procedures.

17.3 Flexible Benefits Plan Contributions Effective July 1, 2012, the City shall contribute $1,587.14 (inclusive of the PERS minimum contribution) per month toward the flexible benefit plan.

Effective July 2019, for employees hired prior to August 1, 2012, the City contribution cash amount will be reduced by fifty dollars ($50.00) per month, for a total monthly cash contribution maximum of $1,537.14. Effective January 1, 2020, for employees hired prior to August 1, 2012, the City contribution cash amount will be reduced an additional fifty dollars ($50.00) per month, for a total monthly cash contribution maximum of $1,487.14.


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Effective January 1, 2021, for employees hired prior to August 1, 2012, the City contribution cash amount will be reduced an additional fifty dollars ($50.00) per month, for a total monthly cash contribution maximum of $1,437.14.

For employees hired prior to August 1, 2012: If an employee is eligible for alternative group medical insurance, the employee may waive the City’s medical insurance coverage and select such alternate plan. Proof of such alternate coverage is required prior to waiving coverage through the City plan. Effective January 2013, and each January during the term of this Memorandum of Understanding, the City’s contribution to the Employee & 2+ Dependents (EE 2+) rate will be increased up to One Hundred percent (100%) of the Kaiser Employee & 2+ Dependents (EE 2+) premium cost. Effective January 1, 2013, the City’s contribution to the flexible benefits plan for Employee (EE) and Employee & 1 Dependent (EE & 1) coverage will be increased to cover the increase in cost of the medical premium up to the dollar contribution to the EE 2+ Kaiser cost. Effective January 1, 2013, the amounts eligible for cash and/or deferred contribution are capped at the 2012 rates for the plan option selected (such as Kaiser EE & 1 or Blue Shield Access EE coverage). The amount of cash and/or deferred compensation that an employee may receive shall not exceed $1,587.14 or increase during the term of this agreement unless the employee changes plans or coverage to a lesser monthly rate.

For employees hired on or after to August 1, 2012: Employees who elect a medical plan shall receive no additional funds for cash.

If an employee is eligible for alternative group medical insurance, the employee may waive

the City’s medical insurance coverage and select such alternate plan. Proof of such alternate coverage is required prior to waiving coverage through the city plan. Any employee who waives medical coverage entirely shall be eligible to receive in cash in accordance with Plan procedures, one-half of the current Kaiser EE plan rate.

Effective July 1, 2019, employees who waive the City’s medical insurance coverage have a cash-in-lieu cap of $389.94 per month.

17.4 Changes in State or Federal Law If, pursuant to any federal or state law which may become effective subsequent to the effective date of this Memorandum of Understanding, the City is required to pay contributions or taxes for hospital-surgical, dental care, prescription drug or other health benefits to be provided its employees under such federal or state act, the parties agree to meet and confer regarding the impact of such a plan on existing benefits. In no event will the cost obligation specified in this agreement for providing benefits be automatically increased as a result of such federal or state plan. It is understood that during the term of this contract, the City may seek expert opinion as to the parameters of this program and all contributions to Flexible Benefits Plan outlined below are contingent upon compliance with state and federal rules and regulations. The Parties agree to meet and confer regarding a replacement provision if any part of this structure is found to be noncompliant.

17.5 Vision Care The City will provide vision care benefits during the duration of this Agreement, up to a

maximum composite monthly rate of $30.00 per employee. If the monthly premium exceeds $30.00 per employee, the City and the Union agree to meet and confer over a resolution.

During the term of the MOU, the Union or the City may provide written notice to the other

party requesting to meet regarding the modification/enhancement of the vision care benefits.


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It is the intent of the parties to conclude any discussions prior to October open enrollment period. Both parties must mutually agree to any changes in benefit levels.

17.6 Dental Plan Effective no later than July 2019, the City will increase the annual dental coverage amount

to two thousand dollars ($2,000) for each participant, and will increase the lifetime orthodontia coverage amount to two thousand dollars ($2,000) for each participant.

The City will provide Delta Dental PPO plan insurance coverage for employees and their

eligible dependents. The City will pay for the majority of the premium cost of the dental plan in accordance with the following schedule of employee monthly contribution:

Benefit Level Employee Cost Employee only $0.00

Employee +1 $5.00

Employee +2 $10.00

During the term of the MOU, the Union or the City may provide written notice to the other

party requesting to meet regarding the modification of dental benefits. It is the intent of the parties to look at the enhancement of dental benefits and to conclude any discussions prior to the October open enrollment. Both parties must mutually agree to any changes in benefit levels.

17.7 Life and Accidental Death and Dismemberment Insurance

The City shall pay on behalf of each regular full-time employee a monthly premium contribution sufficient to provide a flat $75,000 life and accidental death and dismemberment insurance amount for each employee.

17.8 Long Term Disability Long-term disability insurance will continue to be provided. The amount of long-term

disability insurance shall be based upon the employee's basic monthly earnings, reduced by any deductible benefits. The employee shall pay the actual monthly cost of the premium on an after-tax basis.

17.9 State Disability Insurance

A. The City will continue to participate in the California State Disability Insurance

Program (SDI). Any benefits received under this program will be automatically integrated with any available sick leave and/or Workers' Compensation benefits. Once sick leave is exhausted, employees may integrate SDI benefits with unused vacation leave or compensatory time. Integrated payments shall at no time exceed the employee’s regular rate of pay.

B. Paid Family Leave Employees receiving Paid Family Leave benefits shall be required to take up to two

(2) weeks of earned but unused vacation leave or compensatory time as permitted by state law.

17.10 Retirement Classic/Legacy employees, hired before August 1, 2012, shall receive the 2% at 55 formula

for miscellaneous employees from the Public Employees’ Retirement System, hereinafter referred to as PERS, with the following optional benefits:

Credit for Unused Sick Leave; Industrial Disability Retirement for Local Miscellaneous Members; and Fourth Level of 1959 Survivor Benefits.


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Classic/Legacy employees hired after August 1, 2012 shall be covered with a PERS retirement plan with 2% at 55 with the following benefit:

Three (3) years average salary for determination of benefits. Employees who qualify as “New members” as that term is defined by the California Public

Employees’ Pension Reform Act of 2013 (PEPRA) shall have the benefits that are required by PEPRA, which include, but are not limited to:

2.0% @ 62 formula Three Year Average Final Compensation,

Employee contribution to be determined by Government Code Section 7522.30

17.11 Retiree Health Benefits

A. Retirees with five (5) years of service. An employee who retires in accordance with PERS regulations after five (5) years of continuous employment with the City of Belmont shall be eligible to participate in the PERS health care program. The City will contribute to PERS the required employer contribution for such health plan participation.

B. Retirees with ten (10) years of service. An employee hired before July 1, 1985 who retires in accordance with PERS regulations after ten (10) years of continuous employment with the City of Belmont shall be entitled to monthly reimbursement of the expenses he or she incurs for hospital and medical care premiums for his or her individual coverage only.

C. Retirees with twelve (12) years of service. An employee hired after July 1, 1985 who retires in accordance with PERS regulations after twelve (12) years of continuous employment with the City of Belmont shall be entitled to monthly reimbursement of expenses he or she incurs for hospital and medical care premiums for his or her individual coverage only.

D. Retirees after July 1, 2001 An employee who retires after July 1, 2001 and who retires in accordance with (B) or (C) above shall be entitled to monthly reimbursement of hospital and medical care premiums up to a maximum of the amount paid by the City of Belmont for EE employee coverage under the Kaiser health plan.

E. Employees Hired after August 1, 2012 Notwithstanding (C) and (D) above, employees hired after August 1, 2012 shall be entitled to the following retiree health benefits: 1. The City shall participate in the CalPERS Health Plan as governed by the Public Employees' Medical and Hospital Care Act (PEMHCA), and provide the minimum PEMHCA contribution for retirees as required by law. 2. Additionally, the City shall contribute the following to a Retirement Health Savings account based on the years of service with the City.

Years of Service Monthly Contribution Years 1-5 $150.00

Years 6-10 $200.00 Years 11-15 $250.00 Years 16 and thereafter $300.00


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3. Employees shall be vested in the Retiree Health Savings Plan after ten (10) years of continuous service with the City.

F. Retiree Dental

A retiree shall be entitled to participate in the City's dental plan at his or her own cost.

17.12 Deferred Compensation Effective July 1, 2012, the City will contribute 1.3% of base salary to the Deferred

Compensation Plan on behalf of employees in the bargaining unit. Effective the first full pay period in July 2019, the City will contribute 1.3% of base salary

plus Fifty Dollars ($50.00) a month to the Deferred Compensation Plan on behalf of the employees in the bargaining unit.

Effective the first full pay period in January 2020, the City will contribute 1.3% of base salary

plus One Hundred Dollars ($100.00) a month to the Deferred Compensation Plan on behalf of the employees in the bargaining unit.

Effective the first full pay period in January 2021, the City will contribute 1.3% of base salary

plus One Hundred and Fifty Dollars ($150.00) a month to the Deferred Compensation Plan on behalf of the employees in the bargaining unit.

17.13 Domestic Partner Coverage

The City will provide medical coverage for Domestic Partners in accordance with PERS definitions and regulations. The City will provide domestic partner dental, and vision care coverage to the extent and in the manner in which the health plan carriers allow for the domestic partner’s enrollment. For the purposes of providing dental and vision coverage, the domestic partner of the employee shall be defined as an unmarried person, regardless of gender, who resides with the employee and shares the common necessities of life. In a domestic partnership neither partner is married to another; both are at least 18 years of age; are not related by blood so close as to bar marriage; are mentally competent; and are each other’s sole domestic partner, intend to remain so indefinitely, and are responsible for their common welfare. Domestic partners will be required to complete, sign, and file with the City an “Affidavit of Domestic Partnership.” No person who has filed an Affidavit of Domestic Partnership may file another such affidavit until six months after a statement of termination of the previous partnership has been filed with the City.

Section 18. Safety 18.1 Observance of Safety Rules and Regulations Both the City and the Union shall expend every effort to ensure that work is performed with

a maximum degree of safety, consistent with the requirement to conduct efficient operations. Each employee covered by this Memorandum agrees to comply with all safety rules and

regulations in effect and any subsequent rules and regulations that may be adopted. Employees further agree that they will report all accidents and safety hazards to the appropriate management official immediately. Any employee having knowledge of or who is a witness to an accident shall, if requested, give full and truthful testimony as to same.

18.2 Safety Equipment The City shall continue to supply employees with safety equipment required by the City

and/or Cal/OSHA. All employees shall use City supplied safety equipment only for the purposes and uses specified under applicable safety rules and regulations.


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Section 19. Disciplinary Actions Employees may be suspended, discharged, or demoted for cause and a copy of the

correspondence to the affected employee regarding any such disciplinary action shall be forwarded to the Union. The action imposed upon an employee may be processed as a grievance through the grievance procedure as outlined in Section 20 of this Memorandum of Understanding.

The City may issue an employee a written reprimand to an employee as disciplinary action.

Such written reprimand is not subject to the grievance procedure. The employee may, within five (5) days of receipt of a written reprimand, appeal the written reprimand in writing to the City Manager or designee. The City Manager’s determination shall be final and binding.

Section 20. Grievance Procedures 20.1 Definition A grievance is any dispute which involves the interpretation or application of any provision

of this Memorandum of Understanding excluding, however, those provisions of this Memorandum of Understanding which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance procedure.

20.2 Procedure A grievance shall be filed according to the following procedure:

A. Step 1. Immediate Supervisor. A grievance may be filed by an employee on behalf of the employee, or jointly by a group of employees or by the Union.

Within ten (10) calendar days of the event giving rise to a grievance, the grievant

shall present the grievance in writing to the immediate supervisor. Grievances not presented within the time period shall be considered resolved.

The supervisor shall meet with the grievant to settle the grievance and give a written

answer to the grievant within ten (10) calendar days from the receipt of the grievance by the supervisor. When the immediate supervisor is also the department head, the grievance shall be presented directly in Step 2.

B. Step 2. Department Head. If the grievance is not resolved in Step 1, the grievant

may, within fourteen (14) calendar days from the grievant's receipt of the supervisor's answer, forward the grievance to the grievant's department head for consideration. Answer to the grievance shall be made in writing by the department head, after conferring with the grievant, within ten (10) calendar days from receipt of the grievance.

C. Step 3. City Manager. Any grievance which has not been resolved by the procedure

set forth above may be referred to the City Manager by the grievant in writing within ten (10) calendar days from the grievant's receipt of the department head's answer and the specific issues involved shall be detailed in such referral together with a statement of the resolution which is desired. The City Manager shall designate a personal representative who, when designated, shall investigate the merits of the complaint, meet with the grievant and, if the grievant is not the Union itself, to meet also with the officials of the Union which has jurisdiction over the position or positions which will be directly affected by the resolution of the grievance, and to settle such grievance or to make recommendations thereon to the City Manager in the City Manager's capacity as Employee Relations Officer within fifteen (15) calendar days following the meeting(s).


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D. Step 4. Adjustment Board. In the event the parties hereto are unable to reach a mutually satisfactory accord on any grievance (as the term "grievance" is hereinabove defined) which arises and is presented during the term of this Memorandum, such grievance shall be submitted to an Adjustment Board composed of two (2) representatives designated by the Union and two (2) representatives designated by the City.

The Adjustment Board shall entertain, hear, decide, or make recommendations on

any dispute involving a position over which the Union has jurisdiction when such dispute falls within the definition of a grievance as set forth above in Section 18.1. A majority decision of the Adjustment Board shall be final and binding upon the parties.

E. Step 5. Arbitration. If an Adjustment Board is unable to arrive at a majority decision,

either the Association or the City may require that the grievance be referred to an impartial arbitrator who shall be designated by mutual agreement between the Association and the City Manager. If the Union and the City are unable to agree on the selection of an arbitrator, they shall jointly request the State Mediation and Conciliation Service to submit a list of seven (7) qualified labor arbitrators. The representative for the Union and the representative for the City shall then alternately strike names until only one name remains, and that person shall serve as arbitrator. Selection of an arbitrator shall be within thirty (30) calendar days of appeal to arbitration. The fees and expenses of the arbitrator and or a Court Reporter shall be shared equally by the Union and the City. Each party, however, shall bear the cost of its own presentation, including preparation and post-hearing briefs, if any.

Decisions of Adjustment Boards and arbitrators on matters properly before them shall be

final and binding on the parties hereto, to the extent permitted by the laws governing General Law Cities in the State of California.

20.3 Extension of Time Limits The above specified time limits may be extended by mutual agreement between the parties.

Failure of the employee or the Union to act within the specified time limits, unless extended, shall dismiss and nullify the grievance. Failure by the City to observe such time limits, unless extended, shall cause the grievance to be moved to the next level of the grievance procedure.

20.4 Compensation Complaints All complaints involving or concerning the payment of compensation shall be initially filed in

writing with the department head. In such cases no adjustment shall be retroactive for more than sixty (60) days from the date upon which the complaint was filed. Only complaints which allege that employees are not being compensated in accordance with the provisions of this Memorandum of Understanding shall be considered as grievances.

Any other matters of compensation are to be resolved in the meet and confer process and

if not detailed in the Memorandum of Understanding which results from such meet and confer process shall be deemed withdrawn until the meet and confer process is next opened for discussions.

20.5 Suspension and Discharge Grievances If the City Manager in pursuance of the procedures outlined in Subsection 20.2 (C) above

or the Adjustment Board in pursuance of the provisions of Subsection 20.2 (D) above, resolves a grievance which involves suspension or discharge, they may agree to payment for lost time or to reinstatement with or without payment for lost time, but in the event the dispute is referred to arbitration and the arbitrator finds that the City had the right to take the action complained of, the arbitrator may not substitute the arbitrator's judgment for the judgment of management and if the arbitrator finds that the City had such right, the arbitrator may not order reinstatement and may not assess any penalty upon the City.


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20.6 No Changes in Memorandum Proposals to add to or change this Memorandum of Understanding or written agreements

or addenda supplementary hereto shall not be arbitrable and no proposal to modify, amend, or terminate this Memorandum of Understanding, nor any matter or subject arising out of or in connection with such proposal, may be referred to arbitration under this Section. Neither any Adjustment Board nor any arbitrator shall have the power to modify or amend this Memorandum of Understanding or written agreements or addenda supplementary hereto or to establish any new terms or conditions of employment.

20.7 No Strike The Union, its members and representatives, agree that it and they will not engage in,

authorize, sanction, or support any strike, slowdown, stoppage of work, curtailment of production, concerted refusal of overtime work, refusal to operate designated equipment (provided such equipment is safe and sound) or to perform customary duties; and neither the Union nor any representatives thereof shall engage in job action for the purpose of effecting changes in the directives or decisions of management of the City, nor to effect a change of personnel or operations of management or of employees not covered by the Memorandum.

Section 21. Special Provisions 21.1 Safety Committee The Safety Committee shall consist of a minimum of two (2) employees represented by the

Union and selected by the Safety Committee Chair. The purpose of such Committee is to discuss various work safety issues and pr4ovide ideas for resolution. This Committee shall meet not less than once every four (4) months and not more than once a month.

21.2 Competency Check-Off Rosters The Public Works Department has developed a list of operational factors for the safe and

effective operation of each piece of equipment used by employees in the Public Works Department. Employees will be instructed on each piece of equipment in accordance with the above described list of operational factors and upon completion of the instruction, the employee's name shall be placed on a roster verifying such instruction for each piece of equipment. Copies of these rosters shall be maintained in the office of the Public Works Superintendent, the vehicle maintenance shop and the employee's personnel file.

The Public Works Department will review the lists of operational factors and the method of

instructing employees on the equipment with the Union prior to implementation. 21.3 Training Upon receipt from the Union of the list of Public Works' employees who desire training on

specified pieces of equipment, the Public Works Department will develop a schedule to accomplish the desired training per employee and advise the Union of such schedule. Training will continue to be provided office employees on equipment they utilize. Specific requests for such training will be discussed between the City and the Union.

21.4 Shower Room The City will provide soap in the employee's shower room at the Public Works Corporation

Yard. 21.5 Educational Reimbursement The City's educational reimbursement policy applies to employees covered by this

Memorandum of Understanding who have completed the initial probationary period. The policy provides for reimbursement for the cost of tuition and textbooks for educational courses which are approved in advance by the employee's department head and the City Manager. The educational course must be related to the present or known future needs of the City, as well as the employee's employment with the City, and the employee must receive a passing grade of "C" or better if the course is graded, "pass" if the course is offered


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on a pass/fail basis, or other successful completion of the course in the City's judgment. The specifics of the City's educational reimbursement policy are outlined in the Personnel Rules and Regulations.

Upon the request of the Union, the City will meet with representatives of AFSCME to discuss revisions to the reimbursement policy.

21.6 Safety Shoes Employees required to wear safety shoes will be reimbursed for the cost of such safety

shoes. The City will pay up to two hundred fifty dollars ($250.00) annually for such safety shoes for each such employee; employees will be responsible for any cost in excess of two hundred fifty dollars ($250.00) for the safety shoes chosen.

21.7 Uniform Allowance The uniform allowance for the Code Enforcement Officer classification shall be Eight

Hundred dollars and no cents ($800.00). The uniform allowance will be paid on July 30 of each year. The uniform allowance is non-PERSable.

21.8 Class B License Employees required by the City to possess and maintain a Class “B” license will be

reimbursed by the City the cost difference between a Class C and a Class B. 21.9 Medical Exam Employees who are required to have a medical exam in order to receive their drivers license

required for their job, will have the exam done by their own physician on City time and the City will reimburse the employee for the office visit co-pay. If the exam is not covered by the employee’s medical plan, the City will make arrangements for an exam on City time.

21.10 Surveys The parties agree to use the City’s survey cities (Burlingame, Foster City, Los Altos, Los

Gatos, Menlo Park, Millbrae and San Carlos) for the purpose of negotiating the successor MOU.

Effective no less than ninety (90) days prior to the expiration of this MOU, the City will provide

the union with survey data using the City’s survey cities. 21.11 Maintaining Required Licenses and Certifications Employees who are required to hold and/or obtain a required certification and/or license to

perform in a job classification must maintain their license and/or certification at all times during employment in that job classification. Employees are required to notify their supervisor immediately when any required license or certification has lapsed.

Section 22. Economic Hardship In the event that the City suffers substantial economic hardship during the term of this Agreement, the parties agree to engage in a cooperative dialogue about ways to assist the City in addressing such hardship. “Substantial economic hardship,” as used herein, shall include, but not be limited to, a decline in overall General Fund revenues, or an increase in General Fund expenses, of five percent (5%) or more. Nothing in this paragraph shall preclude or impede the City Council from exercising such additional authority as may be conferred by other provisions of this agreement or by State or Federal law.

This provision is not subject to the grievance procedure. Section 23. Past Practices Continuance of working conditions and practices not specifically authorized by ordinance or

by resolution of the City Council is not guaranteed by this Memorandum.


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This Memorandum of Understanding shall supersede all existing Memoranda of

Understanding between the City and the Union. Section 24. Separability of Provisions In the event that any provision of this Memorandum of Understanding is declared by a court

of competent jurisdiction to be illegal or unenforceable, that provision of the Memorandum of Understanding shall be null and void but such nullification shall not affect any other provisions of this Memorandum of Understanding, all of which other provisions shall remain in full force and effect.


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Section 25. Duration This Memorandum of Understanding shall be effective January 1, 2019 except for those

provisions of the Memorandum of Understanding which have been assigned other effective dates as hereinabove set forth and shall remain in full force and effect to and including the thirty first (31th) day of December, 2021, and shall continue thereafter from year to year unless at least sixty (60) days prior to the first day of January, 2022, or to the first day of January of any subsequent year either party shall file written notice with the other of its desire to amend, modify, or terminate this Memorandum of Understanding.

IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding this day of 2019. LOCAL 829, COUNCIL 57, AMERICAN CITY OF BELMONT FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL-CIO __________________________________ _____________________________________

By Tina Acree, AFSCME Business Agent By Afshin Oskoui,

Interim City Manager

__________________________________

By Kieran Cronin _____________________________________

By Cora Dino,

Human Resources Director

__________________________________ ______________________________________

By Matt Ward By Glenn Berkheimer,

IEDA


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APPENDIX A

MONTHLY SALARY SCHEDULE

Effective the first full pay period in January 1, 2019 the salary ranges are as follows:

AFSCME Salary Increase – 3.8% Increase

CLASS TITLE Step 1 Step 2 Step 3 Step 4 Step 5

Accounting Technician I $ 4,923.13 $ 5,169.29 $ 5,427.75 $ 5,699.14 $ 5,984.10

Accounting Technician II $ 5,415.58 $ 5,686.36 $ 5,970.68 $ 6,269.21 $ 6,582.67

Accounting Technician III $ 6,082.04 $ 6,386.14 $ 6,705.45 $ 7,040.72 $ 7,392.76

Building Inspector I $ 6,990.38 $ 7,339.90 $ 7,706.90 $ 8,092.25 $ 8,496.86

Building Inspector II $ 7,414.85 $ 7,785.59 $ 8,174.87 $ 8,583.61 $ 9,012.79

Code Enforcement Officer $ 6,568.46 $ 6,896.88 $ 7,241.72 $ 7,603.81 $ 7,984.00

Construction Inspector $ 7,764.94 $ 8,153.19 $ 8,560.85 $ 8,988.89 $ 9,438.33

Electrician $ 6,335.07 $ 6,651.82 $ 6,984.41 $ 7,333.63 $ 7,700.31

Engineering Technician $ 6,286.35 $ 6,600.67 $ 6,930.70 $ 7,277.24 $ 7,641.10

Equipment Operator $ 5,569.49 $ 5,847.96 $ 6,140.36 $ 6,447.38 $ 6,769.75

Head Teacher $ 4,110.11 $ 4,315.62 $ 4,531.40 $ 4,757.97 $ 4,995.87

Maintenance Worker I $ 4,605.11 $ 4,835.37 $ 5,077.14 $ 5,331.00 $ 5,597.55

Maintenance Worker II $ 5,097.56 $ 5,352.44 $ 5,620.06 $ 5,901.06 $ 6,196.11

Mechanic $ 5,647.70 $ 5,930.09 $ 6,226.59 $ 6,537.92 $ 6,864.82

Office Assistant I $ 4,370.44 $ 4,588.96 $ 4,818.41 $ 5,059.33 $ 5,312.30

Office Assistant II $ 4,855.19 $ 5,097.95 $ 5,352.85 $ 5,620.49 $ 5,901.51

Parks Maintenance Worker I $ 4,605.11 $ 4,835.37 $ 5,077.14 $ 5,331.00 $ 5,597.55

Parks Maintenance Worker II $ 5,097.56 $ 5,352.44 $ 5,620.06 $ 5,901.06 $ 6,196.11

Planning Technician $ 5,956.77 $ 6,254.61 $ 6,567.34 $ 6,895.71 $ 7,240.50

Permit Technician $ 5,956.77 $ 6,254.61 $ 6,567.34 $ 6,895.71 $ 7,240.50

Senior Mechanic $ 5,999.08 $ 6,299.03 $ 6,613.98 $ 6,944.68 $ 7,291.91

PW Lead Maintenance Worker $ 5,847.76 $ 6,140.15 $ 6,447.16 $ 6,769.52 $ 7,108.00

Sr Parks Maintenance Worker $ 5,847.76 $ 6,140.15 $ 6,447.16 $ 6,769.52 $ 7,108.00

Street Sweeper Operator $ 5,327.10 $ 5,593.46 $ 5,873.13 $ 6,166.79 $ 6,475.13

Teacher $ 3,574.06 $ 3,752.76 $ 3,940.40 $ 4,137.42 $ 4,344.30

Teacher's Aide (Hourly) $ 18.05 $ 18.95 $ 19.90 $ 20.90 $ 21.95

Recreation Specialist II (Hourly) $ 15.51 $ 16.29 $ 17.10 $ 17.96 $ 18.86


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APPENDIX A












Electrician $ 6,556.80 $ 6,884.64 $ 7,228.88 $ 7,590.32 $ 7,969.84



Head Teacher $ 4,253.98 $ 4,466.66 $ 4,690.00 $ 4,924.50 $ 5,170.74



Mechanic $ 5,845.36 $ 6,137.66 $ 6,444.54 $ 6,766.74 $ 7,105.08







Senior Mechanic $ 6,209.04 $ 6,519.50 $ 6,845.46 $ 7,187.74 $ 7,547.14

PW Lead Maintenance Worker $ 6,052.44 $ 6,355.06 $ 6,672.82 $ 7,006.46 $ 7,356.78

Sr Parks Maintenance Worker $ 6,052.44 $ 6,355.06 $ 6,672.82 $ 7,006.46 $ 7,356.78


Teacher $ 3,699.16 $ 3,884.10 $ 4,078.32 $ 4,282.22 $ 4,496.36

Teacher's Aide (Hourly) $18.68 $19.61 $20.60 $21.63 $22.72

Recreation Specialist II (Hourly) $16.05 $16.86 $17.70 $18.59 $19.52


34

APPENDIX A












Electrician $ 6,753.50 $ 7,091.18 $ 7,445.74 $ 7,818.02 $ 8,208.94



Head Teacher $ 4,381.60 $ 4,600.66 $ 4,830.70 $ 5,072.24 $ 5,325.86



Mechanic $ 6,020.72 $ 6,321.78 $ 6,637.88 $ 6,969.74 $ 7,318.24







Senior Mechanic $ 6,395.32 $ 6,715.08 $ 7,050.82 $ 7,403.38 $ 7,773.56

PW Lead Maintenance $ 6,234.02 $ 6,545.72 $ 6,873.00 $ 7,216.66 $ 7,577.48

Sr Parks Maintenance $ 6,234.02 $ 6,545.72 $ 6,873.00 $ 7,216.66 $ 7,577.48


Teacher $ 3,810.14 $ 4,000.62 $ 4,200.66 $ 4,410.68 $ 4,631.26

Teacher's Aide (Hourly) $19.24 $20.20 $21.22 $22.28 $23.40

Recreation Specialist II (Hourly) $16.53 $17.37 $18.23 $19.15 $20.11


35

CITY OF BELMONT and

AFSCME Local 829

SIDE LETTER OF AGREEMENT

Side Letter: for Public Works and Parks Uniforms

Both the Parks and Public Works Departments will provide to all new hires Mechanic, Sr. Mechanic, Electrician, Equipment Operator, Street Sweeper Operator, Parks Maintenance Worker (I,II and Lead) Maintenance Worker (I, II and Lead) classification a complete uniform set which shall include 1 baseball hat, 8 short sleeve tee shirts, 2 sweatshirts and 1 winter coat. The City will replace the winter coat every two years.

For AFSCME: For the City:

DATED

Page 1 of 3

STAFF REPORT


Staff Contact: Damon DiDonato, Principal Planner, (650) 637-2908 [email protected]

Agenda Title: Wireless Telecommunications Facilities Regulations

Agenda Action: Information only

Recommendation

Accept report; no action required.

Background

1996-2018

The City’s authority to regulate wireless telecommunication facilities has diminished over time, as

various state and federal regulations have been adopted, including:

• Telecommunications Act of 1996 (47 USC §332)

The Telecommunications Act, codified as 47 United States Code Section (USCS) 332, limits the City

from either conditioning or denying projects based on concerns stemming from the environmental

effects of radio frequency emissions (“RF”), if the proposed facility complies with federal RF

standards. The Act also prohibits the city from denying projects if the applicant has shown that both:

1) The facility is necessary to fill a significant gap in the Applicant’s wireless network; and 2) The

facility is the least intrusive means of filling the service gap.

• Middle Class Tax Relief and Jobs Creation Act of 2012 (47 USC § 6409)

The Middle Class Tax Relief and Jobs Creation Act of 2012, codified as 47 USCS 6409, provides

that the city must approve a request to modify an eligible wireless facility if the proposed modification

does not result in a substantial change to the physical dimensions of an existing tower or base station

(i.e. a wireless facility). Under the Act, an eligible facilities request means any request for

modification of an existing wireless facility that involves collocation of new transmission equipment,

removal of transmission equipment, or replacement of transmission equipment.

• 47 CFR § 1.40001 Wireless Facility Modifications - 2015

The Federal Communications Commission (FCC) adopted new regulations, that broadly interpreted

Section 6409 of the Act in favor of advancing wireless facility deployment. The new FCC rules

define and expand on the terms used in the Act for what constitutes a “substantial change” to an

existing facility.


Page 2 of 3

• State Preemption - Public Utility Code Section 7901

Under California Public Utility Code (PUC) Section 7901, telephone companies have a right to

construct telephone equipment in the public rights of way in such a manner as to “not incommode the

public use” of the right of way. The courts have determined that wireless communication carriers are

“telephone companies” for purposes of Section 7901. Cities have the right under PUC Section 7901.1

“to exercise reasonable control as to the time, place and manner” in which the right of way is accessed.

This right of control includes the regulation of the placement and appearance of telecommunication

facilities installed in the public right of way.

• Federal Communications Commission (FCC) Declaratory Ruling - 2018

The Federal Communications Commission (FCC) adopted a Declaratory Ruling and Third Report

Order in 2018, which sets forth limitations on state and local government regulation of small wireless

facilities that are placed on existing or new utility poles and streetlight standards located in the public

right-of-way, and private property. The FCC ruling: a) limits the level of local permitting and

discretion; b) establishes “shot clock” rules (e.g., time limits and deadlines) for processing and action

on local permits; c) limits the fees that can be charged for the facilities; and d) requires that any

aesthetic regulations and fees required for processing of small wireless facilities be published in

advance.

2018-2019

The City Council has established a priority project to include monitoring wireless regulations (FY18-

19), and modifying the City’s Wireless Telecommunications Ordinance (FY19-20) to ensure

compliance with state and federal law. To this end, staff has taken the following actions:

Monitoring & Application Changes

Staff has modified the application process in response to the FCC regulation changes in 2012 and

2015. Application materials were modified, and a consultant was engaged to peer review radio

frequency (RF) reports to assist staff in meeting the new Section 6409 “shot clock” deadlines;

however, these type of applications have continued to be reviewed by the Planning Commission in

accordance with the current City Telecommunications Ordinance (Section 25 of the Belmont Zoning

Ordinance), and it would be very difficult to meet shot clock deadlines if multiple applications were

submitted at the same time.

Administrative Draft Ordinance

Staff has engaged the services of a consultant to assist in the preparation of an updated

Telecommunications Ordinance. An administrative draft telecommunications ordinance was

prepared, and reviewed by City staff.

The consultant provided responses and modifications to City staff comments; however, staff is still

reviewing the consultant’s responses, and surveying telecommunication ordinances from other

jurisdictions. In addition, the 2018 declaratory ruling by the FCC required staff to fast track

preparation of City regulations for the installation of small wireless facilities in the public right-of-

way. As adoption of ordinance changes were not possible in the compressed time frame for review,

a Public Works Policy was created to address telecommunication facilities in the public right-of-way

(see discussion below).

Public Works Policy

Planning and Public Works staff collaborated in the creation of a Public Works Policy for small cell

wireless facilities in the public right-of-way. As the City’s review of these types of installations is

limited to time, place and manner, the policy was developed with: 1) preferred and non-preferred

Page 3 of 3

locations and placement requirements; 2) design and performance standards; 3) application process

and noticing requirements; and 4) post installation review and testing requirements. The adopted

policy is included as Attachment A.

Next Steps

Staff anticipates that the steps identified below would need to be taken for the update of the City’s

wireless telecommunications facilities regulations.

1) Draft Ordinance (Fall 2019)

The draft ordinance would include many of the same provisions identified in the Public Works

Policy; however, staff recommends that the draft ordinance include a Tier process for review of

wireless facilities through the Community Development Department (i.e., Zoning Administrator

and Planning Commission), depending on the scope, design, and location of the project. Staff

would also work with the cellular service providers to prepare preferred design cut sheets for

wireless telecommunication facilities on utility poles and buildings.

2) Public Engagement (Fall 2019)

Given the City’s limited authority to regulate wireless telecommunication facilities, staff would

recommend one community meeting for the project. This meeting would be noticed to the city at

large and could potentially occur at Belmont City Hall.

3) City Council Meeting - Ordinance Introduction (Fall- Winter 2019)

4) Planning Commission Public Hearing - Recommendation (Winter 2019)

5) City Council – Public Hearing (Winter 2019)

Alternatives

1. Direct staff to discontinue work on preparation of an update of wireless telecommunications

facilities regulations.

2. Continue the matter and direct staff to prepare an alternative course of action.

3. Refer back to staff for additional information.

Attachments

A. Administrative Policy – Small Cell Wireless Facilities in the Public Right-of-way

Fiscal Impact

No Impact/Not Applicable Funding Source Confirmed:



Staff Council Vision/Priority Other**



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Public Works Department

Administrative Policy – Small Cell Wireless Facilities in the Public Right-of-way

Policy: The intent of this policy is to establish general guidelines, standards and procedures to promote public safety, community welfare, and the aesthetic quality of the City while providing for well-managed development of small cell wireless facilities within the public right of way. Additional conditions, and procedures may be required based on project scope or as deemed necessary by the City Engineer. This policy may be amended as needed by the City Engineer.

Background

On September 26, 2018, the Federal Communications Commission (FCC) adopted a Declaratory Ruling and Third Report Order, which sets forth limitations on state and local government regulation of small wireless facilities that are placed on existing or new utility poles and streetlight standards located in the public right-of-way and private property. The FCC ruling clarifies and more specifically restricts the authority of state and local governments to regulate small wireless facilities in the public right-of-way. This ruling is significant in that there are several nuances in small “cell” wireless facilities technology and application, which set them apart from other wireless communication facilities.

The FCC ruling: a) limits the level of local permitting and discretion; b) establishes “shot clock” rules (e.g., time limits and deadlines) for processing and action on local permits; c) limits the fees that can be charged for the facilities; and d) requires that any aesthetic regulations and fees required for processing of small wireless facilities be published in advance. The City does not have the authority to regulate the technologies wireless carriers use; however, in the interest of public health/safety, the City may regulate the time, place, and manner of wireless communications facilities. The Public Works engineering permit and development review process is guide by the following objectives:

1. Minimize the number of small cell facilities for aesthetic reasons by encouraging the location of these facilities in less intrusive preferred locations and collocation where feasible.

2. Provide the opportunity for quality wireless service to all person and visitors in the City by encouraging well-designed facilities compliant with FCC health and safety regulations located in the public right of way.

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3. Encourage wireless communication providers to use City approved design standards for the installation of small wireless facilities to provide aesthetic consistency and streamline the review and approval process.

City Preferences for expedited review and approval The City prefers the installation of small cell facilities on City owned streetlights when equipment cannot be placed in underground vaults. The City has developed design standards plans for the installation of small cell facilities on non-decorative City owned streetlights. Encroachment Permit Applications for small cell facilities on non-decorative City owned streetlights that use City developed standards and are placed in preferred locations as described below, will facilitate an expedient review and approval process. Wireless providers should work with the City to establish an agreement for the use of City owned streetlights before submitting an encroachment permit application. Preferred /Not Preferred locations for small cell wireless facilities include:

PREFERRED NOT PREFERRED

Public right of way fronting City Owned Property

Public right of way within Underground or Historic Districts and fronting Historic Buildings

Arterial Streets, Major Collector Streets, & Collector Streets

Local Residential Streets

Attachment A – Function Classifications Map Attachment A-1 – Historic Resources Map from the Belmont General Plan Attachment B – Map of Preferred and non-preferred poles Design Considerations See attachment C-1 for design standards. Standard drawings for installation can be found on Attachment C. If proposing alternative designs, the following shall be considered:

1. To the maximum extent practical, equipment shall be placed in below grade vaults. 2. Where equipment cannot be placed in below grade vaults, the wireless facility designer

shall to maximum extent possible, conceal equipment within the antenna shroud, and behind street signs located on the pole.

3. Where facilities cannot adequately be hidden within the shroud and behind street signs on the pole, the wireless facility designer shall utilize a pole design with an integrated base enclosure to conceal equipment.

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Placement Requirements 1. A wireless provider may not have small cell facilities on consecutive City owned

streetlights or less than 300 linear feet apart 2. Shall not impede, obstruct, or hinder pedestrian and vehicular traffic. 3. Shall provide appropriate clearance from existing utilities. 4. Shall not be placed in close proximity to overhead utilities. There should be at least 10

feet of clearance from high voltage lines. In addition, the following should be considered to minimize visual impacts:

• Locating new facility installations near property corners or side property lines, and not directly in front of residences and businesses;

• Minimizing views from habitable living areas (such as bedrooms or living rooms) of residential units which directly face the antenna within 100 feet horizontal distance;

• Ensuring there are no flashing lights or large repetitive warning stickers that are unnecessary, distracting, poorly placed, or non-essential. Warning stickers shall be placed where appropriate, and not at pedestrian eye level, unless directed to do so by the FCC or other regulatory agencies;

Encroachment Permit Application Process Permit Applications for small cell facilities within the public right of way shall be submitted to the Public Works Department with applicable fee. The temporary encroachment application, Attachment D, lists all submittal requirements and the flowchart, Attachment E, shows the review process.

Non-City standard designs and non-preferred locations will require an additional review by the Community Development Department to ensure they are consistent with an aesthetically pleasing environment, prevent visual blight and maintain the character of the areas consistent with the adopted General Plan and other City-adopted plans.

Initial review process may result in requests for modifications to the design and/or placement of the facility.

Notifications Requirements If the installation site is deemed to be in a residential area, the applicant shall be required to send notification to residents within a 200-foot radius. If necessary, a public meeting may be required for feedback and possible design modification.

Post Installation Requirements • Within 14 days of the activation of the equipment, the applicant must submit an

Activation Report prepared by a certified professional engineer or to the technical expert

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ARTERIALCOLLECTORRESIDENTIAL

FUNCTIONAL CLASSIFICATION

UPDATED 12/20/2018

Attachment A

BELMONT GENERAL PLAN 2-37

10ACRES

FEET

0 500 1000 00040002

Figure 2-7: Historic and Cultural Resources

Historic and Cultural Resources

National Register Listed

National Register Eligible

State Office of Historic PreservationHistoric Property Directory

Local Historic/Cultural Listing*

Historic District

City Limits

Note: 843 Ralston is noted on the Local list but not mapped.Source: City of Belmont, 2014 (National Register and Local List); NorthwestInformation Center database, 2014; State Office of Historic Preservation HistoricProperty Directory which includes listings of the California Register of HistoricalResources, California Historical Landmarks, California State Points of Interest,and the National Register of Historic Places)

*Some sites with National or State status are also on the local list

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FIGURE 2-7: HISTORIC RESOURCESAttachment A-1

• City of Belmont – Pole Location map WIRELESS COMMUNICATIONS FACILITIES

Public Works Department – 1 Twin Pines Lane, Suite 385, Belmont, CA 94002 (650)595-7425 [email protected]

UNDER DEVELOPMENT Contractor shall coordinate directly with Public Works for pole locations

ERICSSON

ERICSSON

Attachment C

Attachment C-1 Design & Performance Standards - Small Cell Wireless Facilities in the Right-of-Way

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Applicability

Small Cell Wireless telecommunication facilities within the City right-of-way (ROW) are required to conform to the design and performance standards identified below.

All Facilities

Concealment

Small Cell Wireless Facilities and any Associated Equipment must be located and designed and whenever possible screened to blend with the existing natural or built surroundings, as is required for similar construction projects within the City. Said Facilities must incorporate concealment measures sufficient to render the facility either camouflaged or stealth, as appropriate for the proposed location and design.

Underground District

Small Cell Wireless Facilities shall comply with requirements that prohibit electric utilities and telecommunications providers from installing above-ground structures in the Covered Area in these districts. This does not prohibit the use of existing utility poles in Underground Districts.

Historic / Design District

The City may require that the new facilities comply with design and aesthetic standards of the Historic or Design District to minimize the impact to the aesthetic. If the proposed design treatments are insufficient, the City may deny the application.

Design Preservation

Applicants are responsible for maintaining and preserving design and aesthetic features for each Facility, Associated Equipment and any support infrastructure, including, but not limited to, color, tint, shade, treatment, painting, surface treatment, replacement landscaping, stealth design, and concealment.

Meters

Facility should be connected to a PG&E smart meter.

To the extent technically feasible, all Small Cell Wireless Facility installations must be metered by wireless meters in order to avoid the installation of additional street furniture and to avoid aesthetic impacts.

Lighting

Unless otherwise required by FAA or FCC regulations, Applicants may install only timed or motion-sensitive light controllers and lights. All lights must be installed and operated to avoid illumination impacts to adjacent properties to the maximum extent feasible. The City may, in its discretion, exempt an Applicant from the foregoing requirement when the Applicant


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demonstrates a substantial public safety need. All aircraft warning lighting must use lighting enclosures that avoid illumination impacts to adjacent properties in the City to the maximum extent feasible.

Signage and Labels

Unless otherwise permitted by state or federal law, an Applicant must not install signs, display logos, or run advertisement on, alongside, or in connection with a permitted Facility.

Every Facility must contain signage listing the unique location number or name for the Facility, name and contact information for an emergency telephone contact to an individual or service. The signage must comply with design, material, color, and location requirements as stated in the applicable Encroachment Permit. Contact information listed on the sign must be kept current and provided promptly to the City if changed.

All wiring and cabling for the facility should be labeled in the pole hand hole and all pull boxes with the company name and function

Noise

Each Facility must be operated to minimize noise impacts to surrounding land uses in accordance with Chapter 15, Article 8 Section 15-100 et seq. of the Municipal Code and Section 7 of the General Plan.

In residential areas, except for emergency repairs, testing and maintenance activities that will be audible beyond the property line must only occur between the hours of 8:00 a.m. and 6:00 p.m. on Monday through Friday, excluding holidays.

All air conditioning or cooling units and any other equipment that may emit noise that would be audible from beyond the Public Right-of-Way must be enclosed or equipped with noise attenuation devices to the extent necessary to ensure minimal noise impacts upon surrounding uses to the extent technologically available in residential zones. In commercial, or mixed-use zones such equipment must comply with the City’s Noise ordinance.`

Safety

Installations must comply with nuisance regulations and must not interfere with City emergency services or transmissions. An on-site emergency “kill switch” shall be installed to de-energize all radio frequency circuits and components of each permitted Facility in order to protect emergency response personnel. For co-locating Facilities, a single “kill switch” must be installed that will de-energize all Facilities located on the same pole at the Facility in the event of an emergency.

Equipment, Operation and Maintenance Standards

Each permitted Facility and any Associated Equipment must be in maintained in good working condition and appearance, free from trash, debris, litter, and graffiti and other forms of vandalism. Any damage from any cause must be repaired as soon as reasonably possible to minimize occurrences of dangerous conditions or visual blight. Graffiti must be removed from


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any Facility or Associated Equipment as soon as reasonably possible, and in no instance more than 48 hours from the time of City’s notice.

The antenna shroud shall not impinge on removal of the mast arm.

Circuit tracing should be completed using proper circuit tracing equipment.

If necessary, a pull box should be installed at the base of the pole. Connection for wireless power should be made in the pull box. Pull boxes should follow the City Standard Detail SL-400.

Contractor shall repair the right of way and existing facilities if they have been damaged during construction. If the repairs are not done within forty-fice (45) days after written notice, the City may undertake those repairs and charge the applicable party the reasonable and documented cost of the repairs.

Duration

No permit shall be valid for construction longer than six (6) months unless mutually agreed upon by the City and applicant.

Facilities on City Poles

Small Cell Wireless telecommunication facilities shall be consistent with the standard Belmont design specifications identified on Attachment C

All Small Cell Wireless Facility pole installations must be designed and engineered so that no additional supporting hardware is required beyond the pole itself. A Small Cell Wireless Facility that is affixed to an existing light pole must be painted or textured to match that structure.

New facilities may be restricted on poles with existing traffic signals or other electronic devices.

Luminaires damaged during construction shall be replaced with a new luminaire approved by the City.

Pole number labels should be replaced or installed if missing or incorrect.

Facilities on Non-City Poles

Small Cell Wireless telecommunication facilities on non-city poles shall be consistent with the following:

Placement & Profile

In order to minimize impacts to the visual profile, all pole-mounted equipment should be of minimum width to generally not exceed the diameter of the pole, and should be installed as close to the pole as technically and legally feasible. All required or permitted signage in the Public Right-of-Way must face toward the street or otherwise placed to minimize visibility from adjacent


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sidewalks and structures. All equipment (RRUs, conduits, conduit attachments, cables, wires, and other connectors) must be concealed from public view to the extent technically feasible (i.e., said equipment should be placed on the inboard side of the pole so that it is not readily visible from the public right-of-way).

The City prefers compact radomes at top of the pole, preferably flush with the pole, rather than equipment that creates arms or hanging appendages. The Antenna must be top-mounted and concealed within a radome that also conceals the cable connections, Antenna mount and other hardware. A side-mounted Antenna may be approved if the City determines that the side-mounted Antenna would be more appropriate given the built environment, neighborhood character, and overall site appearance. GPS Antennas must be placed within the radome or directly above the radome not to exceed six inches. Pole-mounted Antennas shall not increase the pole height by more than two feet and generally shall not exceed the diameter of the pole, if technically feasible.

Non-Reflective Materials

Small Cell Wireless Facilities must be constructed out of non-reflective materials (visible exterior surfaces only), or materials and colors consistent with surrounding backdrop, unless an exception is granted by the Public Works Director.

Fencing or Enclosures

Any fencing or enclosures proposed in connection with a Facility must blend with the natural or manmade surroundings. Additional landscape features may be required to screen fences. Barbed wire, razor ribbon, electrified fences and similar measures for securing a Facility are not permitted.

Landscaping

Landscaping may be required to visually screen Facilities from adjacent properties or public view or to provide a backdrop to camouflage the Facilities.

• City of Belmont - Temporary Encroachment Permit Application WIRELESS COMMUNICATIONS FACILITIES


JOBSITE ADDRESS/LOCATION/POLE NUMBER: _________________________________________________________ DESCRIPTION OF WORK: ______________________________________________________________________________ _______________________________________________________________________________________________________ Proposed Start Date: __________________ No. of Working Days: _______ Project/Job No.: _________________________ Checklist Attached:

Utility Company Information Company Name: ______________________________________ Contact Person: ___________________________________ Address: _______________________________________________________________________________________________ Phone: ______________________________________ E-mail: ___________________________________________________

Utility Work will be performed by: Utility Company Contractor

Restoration work will be performed by: Utility Company Contractor N/A

Traffic Control will be performed by: Utility Company Contractor Other: ______________________________ Contractor Information

Contractor Name: ________________________________________Contact Person: _________________________________ Address: _______________________________________________________________________________________________ Phone: ____________________________________E-mail: ______________________________________________________

License No.______________________ License Class: _______ City Business License: Yes No Worker’s Compensation Policy No. ________________________________ Company: _______________________________ Note: All above grade utility infrastructure installations may require additional reviews, approvals, and fees. Contractor shall provide a Certificate(s) of Insurance covering the activities of the Contractor, its employees, agents and subcontractors relating to the encroachment permit. Forfeiture of cash deposit or surety bond, City Ordinance Section 22-12. The bonds are intended to guarantee that all conditions and requirements of the encroachment permit will be faithfully performed and completed within the time period specified in the permit. The bonds also will be used by the city, if necessary, to repair to the satisfaction of the public works director any damage caused to the city streets or property by the permittee in the course of the work. I hereby affirm that I have read this application along with the Standard Permit Conditions and state that the above information is correct. I agree to comply with all City, Federal and State laws and permit conditions relating to construction and safety. I also agree to save, indemnify and keep harmless the City and its employees and agents against all liabilities, judgments, costs and expenses which may in any way accrue against the City in consequence of granting this permit. Name/Title of Applicant (print): ___________________________________________________________________________ Signature: ______________________________________________________________ Date: _________________________

• City of Belmont – Permit Application Checklist WIRELESS COMMUNICATIONS FACILITIES

2


Utility Company Information Company Name: ______________________________________ Contact Person: ___________________________________ Address: _______________________________________________________________________________________________ Phone: ______________________________________ E-mail: ___________________________________________________

Application Checklist Applicants shall submit the following for a complete application:

� Application Form and Fee � Project Plans � Traffic Control Drawings � Project Purpose � Photo Rendering � RF Compliance Report � Noise Compliance Report � Prior Permits & Regulatory Approvals � Public Outreach Meeting Summary (if applicable)

• City of Belmont – Application Guidelines WIRELESS COMMUNICATIONS FACILITIES


3

The following application guidelines contain the requirements for a complete wireless facility permit application.

Application Form and Fee Complete the Wireless Facilities Permit Application Cover page and submit the corresponding application fee for the requested permit. You may find the City’s fee schedule on the City’s website. Project Plans Provide two sets of 22x34 inch project plans and a digital file in portable document format (pdf). Project plans shall include a site plan, equipment inventory and details. Traffic Control Drawings Provide two sets of 22x34 inch traffic control plans and a digital file in portable document format (pdf). Project Purpose Provide a written statement that provides the objectives of this application and why the proposed facility is necessary. Provide factual reasoning for the proposed location and height. Photo Rendering A photo rendering shall be provided from a minimum of two locations from a reasonable line of sight location from the public streets. Application shall include the before and after photos for each of the two locations provided. RF Compliance Report Provide a certified RF compliance report from an RF engineer that certifies the proposed facility and associated facilities will comply with the applicable federal RF human exposure standards and limits. Noise Compliance Report Provide a noise compliance report prepared by an engineer that all associated equipment shall be compliant with the City’s noise regulations. Applicant may provide evidence that the cumulative emitted noise will not exceed the applicable limits based on documentation from the equipment manufacturer. Prior Permits & Regulatory Approvals If there are any reasons why the permit application shall be reviewed differently or with exception, the applicant shall provide any pertinent documentation and permits with justified reasoning for a different review process. If under Federal Aviation Regulation (FAA), provide appropriate documentation.

Public Outreach Meeting Summary (if applicable) If the location of the proposed work is within a residential area. The applicant may be required to perform a public outreach meeting before or after the application is submitted.

Submit Application Package

Complete Application Package?

Yes

Prefferred or Non-Preferred Location?

Preferred Location

City shall review based on the streamlined

process

Public Works Approved?

Yes

Applicant may be required to send notifications to

properties within 200'

Public Works Processes Permit for Installation

Complete

No

Applicant may appeal to Public Works

Appeal Approved?

Yes No

Applicant may appeal to City Council within 15 days after decision

from Public Works.

Appeal Approved Appeal Rejected

Non-Preferred Location

City shall review based on full review process

Community Development Review

and Coordination

No

Resubmit Application Package

• Attachment E City of Belmont – Flowchart

WIRELESS COMMUNICATIONS FACILITIES Public Works Department – 1 Twin Pines Lane, Suite 385, Belmont, CA 94002 (650)595-7425 [email protected]

Attachment F City of Belmont – Activation Report

WIRELESS COMMUNICATIONS FACILITIES Public Works Department – 1 Twin Pines Lane, Suite 385, Belmont, CA 94002 (650)595-7425 [email protected]

The applicant shall be responsible for monitoring the emissions of thermal/heat, radio frequency electromagnetic radiation (RF-EMR), and noise for each small cell facility location and provide to the Public Works Director an Activation Report summarizing the results within 14 calendar days of activation for review and approval. The Activation Report must meet include the following:

1. The Activation Report must be prepared by a licensed professional engineer or other technical expert approved by the City.

2. The testing shall also include properties and structures located within 50 feet of small cell wireless antennas all conducted on the same day. Property owners and residents/tenants shall be notified at least 14 calendar days via registered mail through the U.S. Postal Service of the date on which testing will be conducted.

3. Testing shall be conducted in compliance with FCC regulations governing the measurement of RF-EMR emissions and shall be conducted during normal business hours on a non-holiday weekday with the small cell wireless facility operating at maximum power.

4. Proof that testing instrument(s) used were calibrated within their manufacturers’ suggested periodic calibration interval, and that the calibration method complies with the National Bureau of Standards

5. At the City’s sole discretion, an agent of the City may monitor the performance of testing required for preparation of the Activation Report.

6. The Activation Report shall provide confirming information that the facility will not cause any potential exposure to RF-EMR emissions that exceed the adopted FCC standard for human exposure and that noise emissions comply with City requirements.

Any sites with non-compliant test results shall be immediately turned-off (shut-down) or be removed. The applicant shall provide an Activation Report with fully-compliant test results before the site can be placed back in operation.

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Agency: City of Belmont, City Council

Staff Contact: Brigitte Shearer, Parks & Recreation Director, [email protected], Thomas Fil, Finance Director, [email protected]

Agenda Title: Belmont Sports Complex Project and Funding Update

Agenda Action: Receive Project Update

Recommendation Receive update on status of Belmont Sports Complex Synthetic Turf Project cost estimate, financing, and construction timeline. Background The completion of the Belmont Sports Complex North Field Synthetic turf installation was identified as a Council Top 4 Priority during the FY19 and FY20 Strategic Planning Workshops. On February 13, 2018, Callander Associates was engaged to provide further design and construction administration services for the North Field only for an amount not to exceed $164,813 plus a contingency of $24,722. Callander provided 65% drawings on May 14, 2018. The updated project cost estimate for the revised scope of work at that time was $3,451,280. Additional site testing during the summer of 2018 revealed that the subsurface drainage needed to be replaced. Fencing, netting and light pole designs were also revised. A CEQA Notice of Exemption was filed on September 26, 2018. Staff worked with Callander to incorporate State and local agency requirements into the 90% design documents. On February 20, 2019, Callander provided staff with 90% drawings, including an updated cost estimate and a construction schedule. These drawings have been provided to State and local agencies for review and approval. A title report of the site, soil testing, and preliminary construction management review have been completed. On April 23, 2019, staff provided Council with an update on the scope of this project as well as the necessity to obtain financing for the cost of construction due to the delay in receipt of Planned Park development fees. Staff was directed to complete the design documents and return to Council with a recommended funding source. Analysis Project Cost Estimate Based on Callander’s 100% drawings received June 17, 2019, the current cost estimate for the project is $4,234,758 to 4,444,158 plus a ten percent contingency. The cost estimate range is expected to narrow upon confirmation of soil off-haul destination requirements. Due to the size and unique environmental requirements of this project, construction management and inspection services will be necessary. The project will also require Construction Quality Assurance Inspections and Reporting services. Furthermore, to provide the necessary bidding and construction administration services, staff recommends an amendment to the City’s agreement with Callander Associates. In an abundance of caution, additional


STAFF REPORT

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expenses, including geological engineering, securing permits, and potential further testing are also anticipated, totaling $100,000. The following table provides a breakdown of the project costs as known.

Sports Complex Synthetic Turf Project Cost Estimate Soft Costs: Design Architect $189,535 Construction Management 151,590 Construction Inspection 24,000 Architect Construction Services 40,881 Other Consultants and Permits 100,000

Subtotal Soft Costs 506,000 Construction Costs: Construction (high estimate) 4,400,000 10% Construction Contingency 440,000

Subtotal Construction Costs 4,840,000

Total Project Cost Estimate $5,346,000 Project Financing As noted above and in prior presentations to the Council, the project is intended to be funded from Planned Park and Park Impact fees and delaying the project until the funds are in hand would create an unnecessary burden to the community. Therefore, staff has investigated several financing options to allow this project to proceed in advance of those funds being received. Of the options under consideration, a potential loan from the County of San Mateo may suit the City’s needs best. The specific terms are a matter of negotiation, but the County Manager is supportive of the project and is committed to working with the City in financial support, assuming acceptable financing terms can be reached and subject to Board of Supervisors approval. It is important to note that the County has provided loans to other cities for building construction. Financing terms are expected to be presented to Council after the July break. Project Schedule Assuming financing is in place, the proposed construction schedule includes project commencement on or before December 1, 2019 and completion in mid-2020, depending on weather delays. This schedule will minimize impact on playing time and number of players and may also result in more favorable construction costs. The impact of this schedule and the consequences of potential construction delays have been discussed with Belmont Youth Sports representatives and will continue to be addressed as the project moves forward. Alternatives 1. Continue the item

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2. Refer to staff or more information Attachments None Fiscal Impact

No Impact/Not Applicable Funding Source Confirmed: Financing is subject to negotiations with the County of San Mateo.



Staff Council Vision/Priority Other Citizen Initiated Discretionary Action Other Plan Implementation*