Agenda packet — East Palo Alto City Council, March 18, 2025 (part 3 of 3)

JOB-RELATED QUALIFICATIONS
Knowledge of:
 Organization and function of public agencies, including the role of an elected City Council and appointed boards and commissions.
 Sufficient legal terminology necessary to assume assigned responsibilities.  Procedures, methods, and practices involved in composing, processing, typing, formatting, and filing a variety of legal documents.
 Applicable codes, regulations, policies, technical processes, and procedures related to the City Attorney’s Office.
 Business letter writing and the standard format for reports and correspondence.  Principles and practices of data collection and report preparation.  Business mathematics and basic statistical techniques. Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.  The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
 Modern equipment and communication tools used for business functions and program, project, and task coordination.
 Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

Ability to:
 Maintain confidentiality and be discreet in handling and processing confidential information and data.  Interpret, apply, and explain applicable Federal, State, and local laws, rules, regulations, policies, and timelines, as well as complex administrative and departmental policies and procedures.  Perform responsible administrative and secretarial support work with accuracy, speed, and general supervision.
 Understand the organization and operation of the City and of outside agencies as necessary to assume assigned responsibilities.
 Respond to and effectively prioritize multiple phone calls and other requests for service.  Compose legal documents, correspondence, and reports independently or from brief instructions.  Make accurate mathematical, financial, and statistical computations.  Enter and retrieve data from a computer with sufficient speed and accuracy to perform assigned work.  Establish and maintain a variety of filing, record keeping, and tracking systems.  Understand, interpret, and apply all pertinent laws, codes, regulations, policies and procedures, and standards relevant to work performed.
 Learn and understand the organization and operation of the City and of outside agencies as necessary to assume assigned responsibilities.
 Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to the completion of twelfth (12th) grade supplemented by specialized legal secretarial training 318
Paralegal

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and two (2) years of responsible legal secretarial experience.

Completion of a paralegal certificate program or college degree is desirable.

Licenses and Certifications:
 None.

PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; vision to read printed materials and a computer screen; and hearing and speech to communicate in person and over the telephone. This is primarily a sedentary office classification although standing in work areas and walking between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard, typewriter keyboard, or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information.

ENVIRONMENTAL CONDITIONS
Employees work in an office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures. 319
March 2025
FLSA: Exempt

PUBLIC WORKS DIRECTOR/DISTRICT ENGINEER

DEFINITION
Under administrative direction, plans, organizes, manages, and provides administrative direction and oversight for all functions and activities of the Public Works department and the East Palo Alto Sanitation District (EPASD) including design, engineering, and construction activities, maintenance and operations of buildings, parks, streets, stormwater and drainage systems and facilities, and development and implementation of the City’s Capital Improvement Program (CIP); coordinates assigned activities with those of other City departments, officials, outside agencies, and the public; fosters cooperative working relationships among City departments, divisions, and with intergovernmental and regulatory agencies and various public and private groups; provides highly responsible and complex professional assistance to the City Manager/General in areas of expertise; and performs related duties, as assigned.

SUPERVISION RECEIVED AND EXERCISED
Receives administrative direction from the City Manager/General Manager. Exercises general direction and supervision over supervisory, professional, technical, and administrative support staff through subordinate levels of supervision.

DISTINGUISHING CHARACTERISTICS
This is a department director classification that oversees, directs, and participates in all activities of the Public Works department and the EPASD, including short- and long-term planning as well as development and administration of departmental policies, procedures, and services. This class provides assistance to the City Manager/General Manager in a variety of administrative, coordinative, analytical, and liaison capacities. Successful performance of the work requires knowledge of public policy, municipal functions and activities, including the role of an elected City Council, EPASD Board of Directors, and the ability to develop, oversee, and implement projects and programs in a variety of areas. Responsibilities include coordinating the activities of the department with those of other departments and outside agencies and managing and overseeing the complex and varied functions of the department. The incumbent is accountable for accomplishing departmental planning and operational goals and objectives, and for furthering City and EPASD Board of Directors goals and objectives within general policy guidelines.

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equipment, materials, and supplies; directs the monitoring of and approves expenditures; directs and implements adjustments as necessary.
 Selects, trains, motivates, and directs department personnel; evaluates and reviews work for acceptability and conformance with department standards, including program and project priorities and performance evaluations; works with employees on performance issues; implements discipline and termination procedures; responds to staff questions and concerns.  Contributes to the overall quality of the department’s service by developing, reviewing, and implementing policies and procedures to meet legal requirements, City, and EPASD Board of Director needs; continuously monitors and evaluates the efficiency and effectiveness of service delivery methods and procedures; assesses and monitors the distribution of work, support systems, and internal reporting relationships; identifies opportunities for improvement; directs the implementation of change.  Evaluates the need for and develops, plans, and schedules for long-term public works maintenance and engineering programs; organizes available resources for the maintenance, improvement, and repair of public works facilities, City, and EPASD equipment; oversees the development and implementation of the City’s Capital Improvement Program (CIP); compiles estimates, contract provisions, and specifications.
 Reviews the designs, materials, and processes proposed in connection with new construction or major repairs for City facilities and improvements; prepares and/or reviews ordinances for City Council consideration; recommends levels of service for utilities, streets, and drainage areas.  Confers with engineers, developers, architects, and a variety of outside agencies and the general public in acquiring information and coordination of engineering, public works, utilities, streets, and related matters; provides information regarding these matters.
 Represents the department to other City departments, elected officials, and outside agencies; explains and interprets departmental programs, policies, and activities; negotiates and resolves significant and controversial issues.
 Conducts a variety of departmental organizational and operational studies and investigations; recommends modifications to programs, policies, and procedures as appropriate.  Attends and participates in professional group meetings; stays abreast of new trends and innovations in the field of public works maintenance, operations, engineering and other services as they relate to the area of assignment.
 Monitors changes in laws, regulations, and technology that may affect City, EPASD, or departmental operations; implements policy and procedural changes as required.  Prepares, reviews, and presents staff reports, various management and information updates, and reports on department activities and special projects as assigned by the City Manager; prepares and makes presentations to the City Council and the EPASD Board of Directors on a wide variety of committees, boards, and commissions.
 Responds to difficult and sensitive public inquiries and complaints and assists with resolutions and alternative recommendations; assists in writing articles and news releases relating to Public Works and EPASD activities.
 Performs other related duties as assigned.

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 Methods and techniques for the development of presentations, contract negotiations, business correspondence, and information distribution; research and reporting methods, techniques, and procedures.
 Engineering principles and practices as applied to the planning, development, design, construction, operation, and maintenance of Public Works projects.
 Principles and practices of project management.
 Principles and practices of modern municipal water and wastewater, treatment, distribution, and collection systems.
 Applicable Federal, State, and local laws, regulatory codes, ordinances, and procedures relevant to assigned area of responsibility.
 Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, City, and EPASD staff.
 The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
 Modern equipment and communication tools used for business functions and program, project, and task coordination.
 Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

Ability to:
 Select and supervise staff, provide training and development opportunities, ensure work is performed effectively, and evaluate performance in an objective and positive manner.  Provide administrative, management, and professional leadership for assigned programs.  Provide administrative and professional leadership and direction for the division, City, and EPASD.  Develop and implement goals, objectives, policies, procedures, work standards, and internal controls for the department and assigned program areas.
 Research, analyze, and evaluate new service delivery methods, procedures, and techniques.  Prepare and administer large and complex budgets; allocate limited resources in a cost-effective manner.
 Effectively administer special projects with contractual agreements and ensure compliance with stipulations; effectively administer a variety of public works programs and administrative activities.  Read, understand, and interpret official legal documents.  Prepare clear and concise reports, correspondence, policies, procedures, and other written materials.  Conduct complex research projects, evaluate alternatives, make sound recommendations, and prepare effective technical staff reports.
 Understand, interpret, explain, and apply all pertinent laws, codes, regulations, policies and procedures, and standards relevant to work performed.
 Effectively represent the department, City, and EPASD in meetings with governmental agencies; community groups; various business, professional, and regulatory organizations; and in meetings with individuals.
 Learn and understand the organization and operation of the City and EPASD of outside agencies as necessary to assume assigned responsibilities.
 Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.
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Public Works Director/ District Engineer

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Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to a bachelor’s degree in civil engineering, public or business administration, or a related field and five (5) years of progressively responsible experience in a public agency performing duties related to engineering and public works, two (2) years of which must include working in a supervisory capacity.

Equivalent to a master’s degree in civil engineering, public or business administration, or a related field is desirable and may substitute for one (1) year of the required non-supervisory professional experience.

Licenses and Certifications:
 Possession of, or ability to obtain, a valid California Driver’s License by time of appointment and a satisfactory driving record.
 Valid registration as a Professional Engineer in the State of California; OR  Registration as a Licensed Land Surveyor in the State of California.

PHYSICAL DEMANDS
The standard office position requires an employee to access their work location, attend meetings, use computerized workstations, lift paperwork and light-weight equipment or resources (less than 20 pounds), and to operate a motor vehicle to visit various City and meeting sites. Typically, an employee will need to walk, stand, sit, use a keyboard, see, hear, bend, lift, and twist. The employee obtains information from oral instructions, conversations, written reports, email, the Internet, and professional publications, and will process and analyze the information obtained. The employee will provide information orally or in writing, and work on numerous concurrent projects and tasks under deadlines. Typically, an employee will need to mentally process and analyze complex information, compose complex responses, interact with others, and present information and reports.

DEFINITION
Under general direction, plans, schedules, assigns, and reviews the work of consultants, contractors and staff within assigned area. The Manager will also assist with long- and short-term project planning, design, maintenance, and operations in one or more of the following utility areas: water, wastewater, collection systems, solid waste, telecommunications, storm drain systems, and other utility related programs. Additionally, the Manager performs a variety of complex and responsible support to the City Manager/General Manager and Public Works Director/District Engineer on all City and East Palo Alto Sanitation District (EPASD) utility and engineering related matters.

SUPERVISION RECEIVED AND EXERCISED
Receives general direction from the City Manager/General Manager and Public Works Director/District Engineer.

Exercises general direction and supervision over supervisory, technical, operational, and administrative support staff.

DISTINGUISHING CHARACTERISTICS
This is a management classification responsible for planning, organizing, reviewing, evaluating the work of City and EPASD consultants, contractors and staff. Responsibilities include developing and implementing policies and procedures for assigned programs, budget administration and reporting, contract administration, and program evaluation. Incumbents serve as a resource for organizational, managerial, and operational analyses and studies.

Performance of the work requires the use of considerable independence, initiative, and discretion within established guidelines. This class is distinguished from the Public Works Director/District Engineer in that the latter has overall management responsibility for all public works programs, functions, and activities, and for developing, implementing, and interpreting public policy.

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monitors workload, administrative and support systems, and internal reporting relationships; identifies opportunities for improvement and recommends changes to management.  Selects, trains, motivates, and evaluates assigned personnel; provides or coordinates staff training; works with employees on performance issues; implements discipline and termination procedures.  Materially contributes to the development, management and oversight of division budget.  Meets and confers with contractors, engineers, developers, architects, a variety of outside agencies, including regional and regulatory agencies, and the general public in acquiring information and coordinating utility matters.
 Serves as a liaison for the department to other City departments, divisions, elected officials, Board Directors, outside agencies, and the public; attends meetings in various locations; provides staff support to commissions, committees, and task forces; participates in community events and workshops that provide public information regarding departmental programs, projects, and services; explains and interprets departmental programs, policies, and activities.
 At the direction of City Council and the City Manager, may function as the legally responsible official representing the interest of EPASD. Provides highly complex staff assistance to the City Manager/General Manager and Public Works Director/District Engineer; serves as a resource to City and EPASD staff and consultants related to assigned utilities; conducts a variety of organizational and operational studies, special projects, and investigations.
 Prepares and presents concise, accurate, and compelling staff reports, presentations, graphs, charts, and other necessary materials and correspondence related to assigned activities and services to various personnel, boards, City Council, EPASD Board of Directors, commissions, committees, and boards.  Attends and participates in professional group meetings; stays abreast of new trends and innovations in utilities; researches emerging products and enhancements and their applicability to City and EPASD needs; monitors changes in regulations and technology that may affect utility programs; implements policy and procedural changes after approval.
 Responds to difficult and sensitive public inquiries and complaints and assists with resolutions and alternative recommendations.
 Performs other related duties as assigned.

JOB-RELATED QUALIFICATIONS
Knowledge of:
 Principles and practices of employee supervision, including work planning, assignment review and evaluation, discipline, and the training of staff in work procedures.  Principles and practices of leadership and supervision.  Organization and management practices as applied to the development, analysis, and evaluation of programs, policies, and operational needs of the assigned area of responsibility.  Contract management practices and knowledge of public contracting laws in a public agency setting.  Operation of processes and equipment common to water and wastewater collection systems and treatment facilities, water treatment and distribution, stormwater collection, solid waste diversion and recycling, solid waste franchising and transport, National Pollution Discharge Eliminations System (NPDES).  Applicable federal, state, and local laws, regulatory codes, ordinances, safety regulations, and procedures relevant to water, wastewater, storm water systems, solid waste, and other utilities.  Project management practices associated with public works programs and private development projects.

Principles and practices of environmental impact assessment and related regulatory processes.  Methods, materials and techniques used in the construction of public works projects.  Practices of researching issues, evaluating alternatives, making sound recommendations, and preparing and presenting effective staff reports.
325
Utility Manager

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 Municipal public works activities, including engineering, water, wastewater, streets, transportation, facility, parks and public right of ways.
 General principles of risk management related to the functions of the assigned area.  Recent and on-going developments, current literature, and sources of information related to assigned programs and services.
 Applicable federal, state, and local laws, rules, regulations, ordinances, City, and EPASD policies and procedures relevant to assigned area of responsibility including Title 21 and 22 of California regulations and AB 1343.  Operation and maintenance of storm water pump stations  Utility system standard plans
 Operation and maintenance of potable water well and pump systems  Principles and practices of public works contract administration and grant proposal writing.  Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, City, and EPASD staff.
 The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
 Modern equipment and communication tools used for business functions and program, project, and task coordination.
 Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

Ability to:
 Select, supervise and mentor staff, provide training and development opportunities, ensure work is performed effectively, and evaluate performance objectively and positively.  Provide administrative, management, and professional leadership for the division, City, and EPASD.  Plan, organize, and direct effective utility services and programs.  Conduct complex utilities research projects, evaluate alternatives, make sound recommendations, and prepare effective technical reports.
 Prepare and administer large and complex budgets; allocate limited resources in a cost-effective manner.  Research, analyze, and evaluate new service delivery methods, procedures, and techniques.  Effectively administer complex projects with contractual agreements and ensure compliance with stipulations.  Conduct effective negotiations and effectively represent the City, EPASD, and the department in meetings with governmental agencies, contractors, vendors, and various businesses, professional, regulatory, and legislative organizations.
 Prepare clear and concise reports, correspondence, policies, procedures, and other written materials.  Understand, interpret, explain, and apply all pertinent laws, codes, regulations, policies and procedures, and standards relevant to work performed.
 Effectively represent the department, the City, and EPASD in meetings with governmental agencies; community groups; various business, professional, and regulatory organizations; and in meetings with individuals.  Learn and understand the organization and operation of the City and EPASD and of outside agencies as necessary to assume assigned responsibilities.
 Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.  Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.  Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.
 Work the hours necessary to accomplish the assigned duties, including evening and weekend hours; attend evening meetings; travel out of town and attend workshops, conferences, seminars during work and non-work hours.
326
Utility Manager

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Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to a bachelor’s degree with major coursework related to water systems, environmental or civil engineering, biological or physical sciences, and seven years increasingly responsible experience in water systems, wastewater collection and/or other public utilities; including three years of supervisory experience and possession of a valid and appropriate California Driver’s License.

Licenses and Certifications: Highly
Desired:
 Water Distribution Operator Grade D2 certificate issued by the California State Water Resource Control Board.  Water Treatment Operator Grade T2 certificate issued by the California State Water Resource Control Board.

PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer, to inspect City sites, including traversing uneven terrain, climbing ladders, stairs, and other access points, to operate a motor vehicle, and to visit various Agency and meeting sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups, and over the telephone. This is primarily a sedentary office classification although standing and walking between work areas and to conduct inspections may be required.

Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information. Employees must possess the ability to lift, carry, push, and pull materials and objects weighing up to 20 pounds.

ENVIRONMENTAL CONDITIONS
Employees predominately work in an office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances. Employees will work in the field and occasionally be exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, mechanical and/or electrical hazards, and hazardous chemical substances and fumes. Employees may interact with members of the public or with staff under emotionally stressful conditions while interpreting and enforcing departmental policies and procedures.
327
March 2025
FLSA: Non-Exempt

ADMINISTRATIVE ASSISTANT

DEFINITION
Under general supervision, performs a variety of complex office administrative, secretarial, and clerical duties in support of an assigned Department Director or for the East Palo Alto Sanitary District (EPASD), including coordinating, organizing, and overseeing the administrative operations and functions of the assigned office; coordinates assigned programs, projects, and services with other City departments, divisions, and outside agencies; coordinates tasks for assigned area of responsibility; interacts frequently with the public and provides information or directs questions and requests to the appropriate staff; and performs other duties as required.

SUPERVISION RECEIVED AND EXERCISED
Receives general supervision from assigned supervisory or management personnel. Exercises no direct supervision over staff.

DISTINGUISHING CHARACTERISTICS
This is a journey-level classification providing administrative office support to an assigned Department Director, which may include supporting EPASD Responsibilities include performing specialized, confidential, and technical office support duties for the assigned department to ensure efficient service provision. Positions at this level receive only occasional instruction or assistance as new or unusual situations arise and are fully aware of the operating procedures and policies of the work unit. Work is normally reviewed upon completion and for overall results. This class is distinguished from the Secretary in that the latter performs administrative support to an assigned department. Further, this class is distinguished from the Executive Assistant to the City Manager in that the latter performs administrative support to the City Manager.

EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.
 Relieves director of a variety of administrative details by assisting with duties of an advanced, complex, and sensitive nature; recommends organizational or procedural changes affecting support activities; recommends improvements in workflow, procedures, and use of equipment and forms.  Screens calls, visitors, and mail; responds to complaints and requests for information; assists in interpreting and applying regulations, utility rates and fee structure, policies, procedures, systems, rules, and precedents in response to inquiries and complaints from the public; directs callers to appropriate 328
Administrative Assistant
City staff and EPASD or routes service calls to the field; assists the public and directs the public to appropriate locations/staff.
 Coordinates and participates in the preparation of department budget; initiates department purchases for office supplies and other items as assigned; authorizes payment of invoices; may perform cashier duties by accepting utility payments; may track accounts receivable and accounts payable for expense accounts
 Performs other financial and accounting related duties, including receiving payments and reconciling them with purchasing orders, tracking vendor and invoice information, assisting with bid requests, price quotes, purchase and expenditure requests, and purchase orders.  Assists in a variety of department and program operations; coordinates, monitors, leads, and participates in special projects, public records requests, staff and/or community events, trainings, and activities as assigned; maintains control files on matters in progress and expedites their completion; serves on committees as assigned.
 Prepares and processes reports, forms, and records, such as confidential personnel transaction forms, Board agenda items, requests for payments, requests for proposals, bid packages, contracts and agreements, and reimbursement requests.
 Verifies and reviews forms and reports for completeness and conformance with established regulations and procedures; applies departmental and program policies and procedures in determining completeness of applications, records, and files.
 Types, originates, formats, proofreads, and distributes a wide variety of reports, letters, and memoranda, including agenda items or formal communications to rate payers; types from rough drafts or verbal instructions; checks drafts for punctuation, spelling, and grammar; makes or suggests corrections to drafts.
 Organizes and carries out administrative assignments; researches, compiles, and organizes information and data from various sources on a variety of specialized topics related to programs in assigned area; checks and tabulates standard mathematical or statistical data; prepares and assembles reports, manuals, articles, announcements, and other informational materials; maintains calendars of activities, meetings, and various events.
 Coordinates and schedules meetings, appointments, and speaking engagements; reserves meeting rooms; maintains reports; compiles and distributes agenda packets; posts meeting agendas in accordance with laws; attends meetings; formats and distributes minutes.  Coordinates travel arrangements and accommodations for department personnel and submits all related paperwork.
 Performs other related duties as assigned.

JOB-RELATED QUALIFICATIONS
Knowledge of:
 Practices and methods of office management and administration, including the use of standard office equipment.
 Organization and functions of the City and EPASD, including the role of an elected City Council, Board of Directors, and commissions.
 Applicable codes, regulations, policies, technical processes, and procedures related to the department to which assigned.
 Applicable Federal and State laws; City, department, and division regulations, codes, policies, and procedures.
 Recordkeeping principles and procedures.
 Basic accounts receivable, accounts payable, general ledger, and expense account tracking. 329
Administrative Assistant
 EDS tack roll updates.
 Cashiering functions.
 Business letter writing and report preparation.
 Business mathematics and statistical techniques.
 Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
 The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
 Modern equipment and communication tools used for business functions and program, project, and task coordination.
 Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

Ability to:
 Perform responsible administrative and secretarial support work with accuracy, speed, and general supervision.
 Maintain confidentiality and be discreet in handling and processing confidential information and data.  Interpret, apply, and explain administrative and departmental policies and procedures.  Prepare clear and concise reports, correspondence, policies, procedures, and other written materials.  Maintain accurate records.
 File materials alphabetically, chronologically, and numerically.  Make accurate arithmetic, financial, and statistical computations.  Compose correspondence and reports independently or from brief instructions.  Enter and retrieve data from a computer with sufficient speed and accuracy to perform assigned work  Maintain attention to detail and accuracy.
 Understand, interpret, and apply all pertinent laws, codes, regulations, policies and procedures, and standards relevant to work performed.
 Effectively represent the department, the City, and EPASD in meetings with governmental agencies; community groups; various business, professional, and regulatory organizations; and in meetings with individuals.
 Understand the organization and operation of the City, EPASD, and of outside agencies as necessary to assume assigned responsibilities.
 Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
 Perform, coordinate, and complete a wide variety of special projects as assigned.  Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:
330
Administrative Assistant
Equivalent to graduation from the twelfth (12th) grade supplemented by specialized course work in typing, bookkeeping, or related office function(s) and five (5) years of progressively responsible experience performing office support activities using modern office practices, procedures, and equipment.

Licenses and Certifications:
 Possession of, or ability to obtain, a valid California Driver’s License by the time of appointment and a satisfactory driving record.

PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer, and to operate a motor vehicle to visit various City and meeting sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person and over the telephone.

Standing in and walking between work areas is frequently required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment.

Positions in this classification frequently bend, stoop, kneel, and reach to perform assigned duties, as well as push and pull drawers open and closed to retrieve and file information. Employees must possess the ability to lift, carry, push, and pull materials and objects up to 20 pounds with the use of proper equipment.

Reasonable accommodations will be made for individuals on a case-by-case basis.

MAINTENANCE WORKER I/II

DEFINITION
Under direct or general supervision, performs a variety of work in the construction, modification, maintenance, and repair of City infrastructure, including buildings, parks, streets, stormwater, and/or drainage systems and facilities; uses and operates a variety of manual and power tools and light to heavy power-driven equipment. Additionally, if qualified the incumbent identifies, locates, and marks the City’s underground utilities in accordance with California government codes and City policies and procedures; and performs related work, as assigned.

SUPERVISION RECEIVED AND EXERCISED
Exercises no direct supervision over staff.

Maintenance Worker I: Receives direct supervision from the Maintenance Manager and Maintenance Supervisor and functional and technical direction and training from the Senior Maintenance Worker.

Maintenance Worker II: Receives general supervision from the Public Works Manager and Public Works Supervisor and functional and technical direction and training from the Senior Maintenance Worker.

DISTINGUISHING CHARACTERISTICS
Maintenance Worker I: This is the entry-level classification in the Maintenance Worker series. Initially under close supervision, incumbents with basic experience learn City systems, operations, practices, and procedures. As experience is gained, assignments become more varied and are performed with greater independence. Assignments may vary with the skill and training of the incumbent. Positions at this level usually perform most of the duties required of the positions at the II-level but are not expected to function at the same skill level and usually exercise less independent discretion and judgment in matters related to work procedures and methods.

Maintenance Worker II: This is the journey-level classification in the Maintenance Worker series.

Positions at this level are distinguished from the I-level by the performance of the full range of duties as assigned, working independently, and exercising judgment and initiative. Positions at this level receive only occasional instruction or assistance as new or unusual situations arise and are fully aware of the operating procedures and policies of the work unit. Work is normally reviewed upon completion and for overall results.

Positions in the Maintenance Worker class series are flexibly staffed and positions at the II-level are normally filled by advancement from the I-level after gaining the knowledge, skill, and experience which meet the qualifications for and after demonstrating the ability to perform the work of the higher-level class.

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 Performs inspection, construction, maintenance, and repair activities of City storm drain and sanitation systems and facilities to ensure safe and efficient access for the public.  Operates specialized vehicles and a variety of light, medium, and heavy equipment related to the maintenance and repair of the City’s sanitation infrastructure system; inspects, rebuilds, and services equipment, as necessary.
 Performs a variety of duties in the maintenance of drainage structures to ensure efficient drainage.  Performs concrete and open channel maintenance, including inspecting and repairing sanitary and stormwater conveyance systems, removing/abating weeds and other invasive vegetation, removing sediments, debris, and trash from channels, applying site delineation, best management practices, and erosion control before, during, and after maintenance activities, and keeping in compliance with applicable Federal, State, and local water regulatory laws and regulations.  Provides installation, maintenance, and repair of traffic signs, including making signs, and installing signposts and signs in accordance with City, State, and Federal Codes.  Participates in asphalt maintenance, including demolition and preparation of areas to be resurfaced; applying, raking, compacting, and paving appropriate materials to the surface and cleaning up work areas.
 Participates in concrete maintenance, including attending to trip hazards, demolishing and removing concrete, and forming, pouring, and finishing sidewalks, handicap ramps, curbs, and gutters.  Responds to service complaints; cleans and disinfects residences after sewer stoppages.  Performs legend painting and striping of City streets, curbs, and parking lots using appropriate materials.
 Installs street barricades and cones and controls traffic around work sites and special events to ensure safe conditions for the general public and City workers; directs traffic.  Follow City-wide safety procedures and practices, ensuring all work is performed safely and in compliance with policies.
 Inspects City premises for graffiti vandalism, uses appropriate chemicals and high-pressure equipment to remove graffiti.
 Performs a variety of technical landscape construction duties, including planting flowers, shrubs, and trees, pruning, and repairing damaged trees, making, and repairing tree wells, irrigating, mowing, and fertilizing turf, trimming, and planting, fertilizing, and pruning shrubs.  Performs routine maintenance and alterations on City buildings and facilities; identifies and evaluates construction-related problems; repairs and/or renovates structures; and performs other related tasks.  Operates and maintains specialized vehicles and a variety of light, medium, and heavy equipment related to the construction, maintenance, and repair of City systems and facilities.  Operates a variety of hand and power tools and equipment related to work assignment as instructed.  Observes safe work methods and makes appropriate use of related safety equipment as required.  Maintains public facilities, City shop and City garage areas, storage sites, and other work areas in a clean and orderly condition, including securing equipment at the close of the workday.  Provides needed information and demonstrations concerning how to perform certain work tasks for new employees in the same or similar class of positions; prepares and reviews work orders, as necessary.
 Maintains accurate logs and records of work performed and materials and equipment used.  Loads and unloads tools, equipment, materials, and debris into and from trucks; drives trucks up to 9,000 pounds gross vehicular weight.
 Responds to after-hours emergencies.

Performs other related duties as assigned.

If qualified and assigned to Utility Locator may:
 Use electronic tracking, GPS, and other technologies to identify and mark underground facilities (e.g., sewers, fiber optics, streetlights) in accordance with regulations and industry practices.  Manage and respond to the Underground Service Alert (USA) tickets, documenting actions taken and ensuring timely responses in compliance with regulations. 333
Maintenance Worker I-II

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 Read and interpret maps, blueprints, and GIS data to verify utility locations. Submit corrections and updates to GIS staff as needed.
 Respond to emergency calls, providing critical utility location information to prevent damage and hazards.

JOB-RELATED QUALIFICATIONS
Some knowledge, skills, and abilities may be demonstrated by positions at the entry (I) level in a learning capacity:

Knowledge of:
 Standard principles, practices, tools, materials, and safety considerations as they relate to the maintenance and repair of infrastructure, streets, systems, facilities, and appurtenances similar to those in a municipal environment.
 Occupational hazards and safety equipment and practices related to the work, including the handling of hazardous chemicals.
 Cal/OSHA and DOT safety codes and regulations related to job duties and responsibilities.  Recordkeeping and reporting procedures.
 Safe driving rules and practices.
 Basic mathematics.
 The operation and minor maintenance of a variety of hand and power tools, vehicles, and light to heavy power equipment.
 Traffic control procedures and traffic sign regulations.  Operational characteristics of specialized construction maintenance and repair equipment.  Applicable Federal, State, and local laws, regulatory codes, ordinances, and procedures relevant to assigned area of responsibility.
 Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
 Modern equipment and communication tools used for business functions and program, project, and task coordination.

Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

If qualified and assigned to Utility Locator:
 Underground Service Alert and pertinent State regulations.  Methods, tools, equipment, and standard practices for locating and marking underground utilities.  Methods, materials, and equipment used in the installation, maintenance, excavation, and repair of underground utilities.
 Basic electricity and safety rules when working around or in the vicinity of Energized High Voltage Conductors and equipment.

Ability to:
 Perform a variety of tasks relating to the construction, modification, repair, and maintenance of public works facilities, parks, roads, and sewers.
 Read, interpret, and apply technical information from manuals, drawings, specifications, layouts, blueprints, and schematics.
 Understand and follow oral and written instructions.
 Set up and operate traffic area construction zones, including cones, barricades, and flagging.  Maintain accurate logs, records, and basic written records of work performed.  Learn principles, practices, techniques, and regulations pertaining to assigned duties. 334
Maintenance Worker I-II

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 Safely and effectively use and operate hand tools, mechanical equipment, power tools, and light to heavy equipment required for the work.
 Establish and maintain effective working relationships with contractors, the public, and other city personnel.
 Communicate effectively orally and in writing.
 Maintain work and equipment records.
 Understand, interpret, and apply all pertinent laws, codes, regulations, policies and procedures, and standards relevant to work performed.
 Effectively represent the department and the City in meetings with governmental agencies; community groups; various business, professional, and regulatory organizations; and in meetings with individuals.  Learn and understand the organization and operation of the City and of outside agencies as necessary to assume assigned responsibilities.
 Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
 Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.
 If qualified and assigned to Utility Locator:
 Read maps and interpret project plans, blueprints, and related materials to determine location of utilities.
 Understand, interpret, and effectively implement local, state, and federal legislation and regulations regarding underground utilities.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Maintenance Worker I: Equivalent to graduation from the twelfth (12th) grade and experience performing entry level construction, landscaping, road repair, facility maintenance duties, and/or pumps, surveying, or utility line locating field involving underground facilities is desired.

Maintenance Worker II: Equivalent to graduation from the twelfth (12th) grade and two (2) years of experience performing construction or manual labor duties similar to those of a Maintenance Worker I. Experience in the maintenance and repair of engines, motors, and/or compressors.

Licenses and Certifications:

For the underground location assignment, must pass a training program to become a Qualified Person per California Government Code 4216, which includes familiarization with Cal OSHA Title 8, Section 1509 Injury Prevention Program, USA North and Common Ground Alliance (CGA) and must maintain required certifications. Possession of certificate of completion course pertaining to locating underground utilities is preferred and will be required prior to performing any USA locating duties.

A way to obtain necessary knowledge and skills is to complete the Utility Locator Technician Certification required to be eligible to perform the Utility Locator assignment.

Maintenance Worker I: Possession of, or ability to obtain, a valid California C Driver’s License by time of appointment and a satisfactory driving record.
335
Maintenance Worker I-II

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Maintenance Worker II: Possession of, or ability to obtain, a valid California B Driver’s License by time of appointment and a satisfactory driving record within one year of appointment.

PHYSICAL DEMANDS
Must possess mobility to work in the field; strength, stamina, and mobility to perform medium to heavy physical work, to work in confined spaces and around machines, to climb and descend ladders, to operate varied hand and power tools and construction equipment, and to operate a motor vehicle and visit various City sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person and over the telephone or radio. The job involves fieldwork requiring frequent walking in operational areas to identify problems or hazards. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate above-mentioned tools and equipment.

Positions in this classification bend, stoop, kneel, reach, and climb to perform work and inspect work sites.

Employees must possess the ability to lift, carry, push, and pull materials and objects weighing up to 50 pounds, or heavier weights with the use of proper equipment and assistance from other staff.

ENVIRONMENTAL CONDITIONS
Employees work in the field and are exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, confining workspace, chemicals, mechanical and/or electrical hazards, and hazardous physical substances and fumes. Employees may interact with members of the public or with staff under emotionally stressful conditions while interpreting and enforcing departmental policies and procedures.
336
March 2025
FLSA: Non-Exempt

MAINTENANCE WORKER III

DEFINITION
Under general supervision, directs and participates in the performance of routine to complex manual labor tasks relating to the construction and maintenance of public right-of-ways, facilities, and utilities services; operates heavy equipment in the performance of the work. Additionally, if qualified, the incumbent identifies, locates, and marks the City s underground utilities in accordance with the California government codes and City policies and procedures; and performs related work, as assigned.

SUPERVISION RECEIVED AND EXERCISED
Receives general supervision from the Maintenance Manager. Exercises functional and technical direction over and provides training to lower-level staff.

DISTINGUISHING CHARACTERISTICS
This is the advanced-level classification in the Maintenance Worker series. Incumbents work under general supervision and exercise a high level of discretion and independent judgment in performing the full range of routine to complex manual labor duties in the construction, maintenance, and repair of City facilities and infrastructure. This class is distinguished from the Senior Maintenance Worker in that the latter provides lead direction to crews, assists in assigning and reviewing work, and performs the most complex work assigned to the series.

 Participates in performing routine to complex and specialized maintenance and repair work on assigned City public works infrastructure.
 Trains employees in work methods, use of tools and equipment, and relevant safety precautions.  Operates specialized vehicles and a variety of light, medium, and heavy equipment related to the maintenance and repair of the City s sanitation infrastructure system; inspects, rebuilds, and services equipment as necessary.
 Performs a wide variety of maintenance, repair, and installation work in the City infrastructure, systems, and facilities to which assigned, including buildings and facilities, parks, streets, sidewalks, curbs and gutters, asphalt pavement, concrete repair, traffic and street sign installation, repair, and reflectivity, pavement markings, and/or stormwater and drainage systems and facilities.  Assists in coordinating, overseeing and personally participating in all assigned maintenance programs.  Installs new and replacement storm drainage lines; cuts, threads, and joins pipe; shapes side walls and bottom of tunnels or open trenches to specified dimensions and grades; repairs and installs manholes including removing and replacing manhole covers as necessary. 337
 Follow City wide safety procedures and practices, ensuring all work is performed safely and in compliance with policies.
 Inspects various public works improvement activities and private developments in the assigned functional area; interacts with engineers and contractors regarding compliance with City standards and specifications; reports, records, and documents inspections, observations, and conditions found during the inspection process.
 Observes safe work methods and makes appropriate use of related safety equipment as required.  Performs minor adjustments on service equipment; maintains tools and equipment in working order.  Provides installation, maintenance, and repair of traffic signs, including making signs, and installing signpostsand signs in accordance with City, State, and Federal Codes.  Stays current on the status of new and pending regulatory legislation; attends continuing education courses and seminars as required.
 Maintains accurate records and logs of daily activities using appropriate computer software applications; prepares reports related to work progress and finished projects.  Responds to and performs emergency repairs and other emergency services as necessary.  Maintains public facilities, shop and garage areas, storage sites, and other work areas in a clean and orderly condition, including securing equipment at the close of the workday.  Performs other related duties as assigned.

JOB-RELATED QUALIFICATIONS
Knowledge of:
 Standard principles, practices, tools, materials, and safety considerations as they relate to the maintenance and repair of infrastructure, streets, systems, facilities, and appurtenances similar to those in a municipal environment.
 Occupational hazards and safety equipment and practices related to the work, including the handling of hazardous chemicals.
 Cal/OSHA and DOT safety codes and regulation related to job duties and responsibilities  Recordkeeping and reporting practices
 Safe driving rules and practices.
 Basic mathematics, including Ohm’s law and principles of linear measurement.  The operation and minor maintenance of a variety of hand and power tools, vehicles, and light to heavy power equipment.
 Traffic control procedures and traffic sign regulations.  Operational characteristics of specialized construction maintenance and repair equipment.  Applicable Federal, State, and local laws, regulatory codes, ordinances, and procedures relevant to assigned area of responsibility.
 Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
 The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar in order to be effective in the assignment.  Modern equipment and communication tools used for business functions and program, project, and task coordination.
 Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

If qualified and assigned to Utility Locator:
 Underground Service Alert and pertinent State regulations.  Methods, tools, equipment, and standard practices for locating and marking underground utilities. 338
 Methods, materials, and equipment used in the installation, maintenance, excavation, and repair of underground utilities.
 Basic electricity and safety rules when working around or in the vicinity of Energized High Voltage Conductors and equipment.

Ability to:
 Plan, organize, and coordinate the work of technical staff.  Effectively provide staff leadership and work direction.  Perform a variety of tasks relating to the construction, modification, repair, and maintenance of public works facilities, parks, roads, and sewers.
 Read, interpret, and apply technical information from manuals, drawings, specifications, layouts, blueprints, and schematics.
 Understand and follow oral and written instructions.
 Set up and operate traffic area construction zones, including cones, barricades, and flagging.  Maintain accurate logs, records, and basic written records of work performed.  Learn principles, practices, techniques, and regulations pertaining to assigned duties.  Safely and effectively use and operate hand tools, mechanical equipment, power tools, and light to heavy equipment required for the work.
 Understand, interpret, explain, and apply all pertinent laws, codes, regulations, policies and procedures, and standards relevant to work performed.
 Effectively represent the department and the City in meetings with governmental agencies; community groups; various business, professional, and regulatory organizations; and in meetings with individuals.  Learn and understand the organization and operation of the City and of outside agencies as necessary to assume assigned responsibilities.
 Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to graduation from the twelfth (12th) grade and five (5) years of progressively responsible experience performing construction or manual labor duties similar to those of a Maintenance Worker II.

Licenses and Certifications:
 Possession of, or ability to obtain, a valid California Driver’s License (Class B) by time of appointment and a satisfactory driving record.
 Possession of, or ability to obtain, a valid Landscape Certificate.  Possession of, or ability to obtain, a valid Lock Out and Tag Out Certificate.  Possession of a valid Supervisory or Lead Certificate is desired. 339

Positions in this classification bend, stoop, kneel, reach, and climb to perform work and inspect work sites.

Employees must possess the ability to lift, carry, push, and pull materials and objects weighing up to 50 pounds, or heavier weights with the use of proper equipment and assistance from other staff.

FINANCE DIRECTOR/ DISTRICT TREASURER

DEFINITION
Under administrative direction, plans, organizes, manages, and provides administrative direction and oversight for all functions and activities of the Finance Department, including finance, treasury, accounting, purchasing, billing, customer service and risk management which includes identifying, analyzing, mitigating, and monitoring financial and operational risks to protect the City's and the East Palo Alto Sanitary District s (EPASD) assets and ensure fiscal sustainability; directs and administers the fiscal operations and activities of the City and EPASD, which include budgeting, investments, financial transaction processing, record-keeping and reporting, payroll, accounts payable, accounts receivable, utility billing, and business licensing; coordinates assigned activities with other City and EPASD departments, officials, outside agencies, and the public; fosters cooperative working relationships among City and EPASD departments and with intergovernmental and regulatory agencies and various public and private groups; provides highly responsible and complex professional assistance to the City Manager/General Manager in areas of expertise; serves as a Board member of the insurance pool JPA; and performs related duties, as assigned.

SUPERVISION RECEIVED AND EXERCISED
Receives administrative direction from the City Manager/General Manager. The work provides for a wide variety of independent decision-making, within legal and general policy and regulatory guidelines.

Exercises general direction and supervision over management, supervisory, professional, technical, and administrative support staff through subordinate levels of supervision.

DISTINGUISHING CHARACTERISTICS
This is a Department Director classification that oversees, directs, and participates in all activities of the Finance Department, including short- and long-term planning, development, and administration of departmental and EPASD policies, procedures, and services. This class provides assistance to the City Manager/General Manager and the City Council members/EPASD Board of Directors in a variety of administrative, coordinative, analytical, and liaison capacities. Successful performance of the work requires knowledge of public policy and municipal and district functions and activities, including the role of an elected officials, and the ability to develop, oversee, and implement projects and programs in a variety of areas. Responsibilities include coordinating the activities of the department and EPASD with those of other departments and outside agencies and managing and overseeing the complex and varied functions of the department. The incumbent is accountable for accomplishing departmental planning and operational goals and objectives and for furthering City and EPASD goals and objectives within general policy guidelines. 341
Finance Director/
District Treasurer

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EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.
 Assumes full management responsibility for all Finance Department programs, services, and activities, including finance, treasury, accounting, purchasing, billing, customer service and risk management activities.
 Develops, directs, and coordinates the implementation of goals, objectives, policies, procedures, and work standards for the department; establishes, within City and EPASD policy, appropriate budget, service, and staffing levels.
 Manages and participates in the development and administration of City department’s and EPASD annual budgets; directs the forecast of additional funds needed for staffing, equipment, materials, and supplies; directs the monitoring of and approves expenditures; directs and implements adjustments as necessary; ensures that the budgets of all departments and EPASD are accurate, aligned with policies and procedures, and consistent with financial best practices; collaborates with department heads and EPASD Board of Directors to review and refine budget proposals; and works closely with the City Manager/General Manager to finalize all budgets.
 Plans, coordinates, and manages the City’s and EPASD’s risk management and loss control programs, including general liability, property cost recovery, and loss prevention strategies to minimize exposure to financial and operational risks.
 Administers and maintains insurance programs, workers’ compensation claims, and related policies; ensures proper handling of claims, evaluates coverage options, and coordinates with insurers to optimize risk transfer strategies.
 Supervises the City’s safety program and ensure compliance with regulatory requirements, including Affordable Care Act (ACA) report filings; provide risk management consulting services to City departments and EPASD to promote a safe and legally compliant work environment.  Serve as an active participant in the governance of the Plan JPA by attending Board meetings, contributing to decision-making processes, and providing financial insights to support policy formulation.
 Selects, trains, motivates, and directs department personnel; evaluates and reviews work for acceptability and conformance with department standards, including program and project priorities and performance evaluations; works with employees on performance issues; implements discipline and termination procedures; responds to staff questions and concerns.  Contributes to the overall quality of the department’s service by developing, reviewing, and implementing policies and procedures to meet legal requirements and City and EPASD needs; continuously monitors and evaluates the efficiency and effectiveness of service delivery methods and procedures; assesses and monitors the distribution of work, support systems, and internal reporting relationships; identifies opportunities for improvement; directs the implementation of change.  Coordinates the development and administration of the entire City’s and EPASD’s annual budgets and Capital Improvement Program budgets; provides financial forecasting and planning; tracks the adopted budget and prepares periodic budget reviews for submission to City and EPASD departments.  Establishes the City’s and EPASD’s central budgeting, accounting, and financial reporting practices; evaluates accounting procedures and financial controls; responds to and implements audit recommendations; acts as a resource for the Budget Review Committee; ensures compliance with Federal, State, local government accounting and financial reporting standards and controls.  Manages the City’s and E{ASD’s investment portfolio; ensures that investments meet the City’s and EPASD Board of Director’s policy guidelines and that adequate cash is available to meet obligations; prepares periodic reports regarding investments to the City Council and EPASD Board. 342
Finance Director/
District Treasurer

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 Oversees all activities related to the City’s and EPASD’s accounting function, including financial transaction processing, record keeping and reporting, payroll, accounts payable, accounts receivable, utility billing, business licensing, processing and issuance of checks and warrants, cash receipts, and the electronic accounting system.
 Reviews City and EPASD development agreements; reviews fiscal analysis regarding recommended annexations; reviews and establishes special assessment districts and maintenance districts.  Oversees the development of consultant requests for proposals for professional services and the advertising and bid processes; evaluates proposals and recommends project award; coordinates with legal counsel to determine City and EPASD needs and requirements for contractual services; negotiates contracts and agreements and administers same after award.  Represents the department to other City and EPASD departments, elected officials, and outside agencies; explains and interprets departmental programs, policies, and activities; negotiates and resolves significant and controversial issues.
 Conducts a variety of departmental organizational and operational studies and investigations; recommends modifications to programs, policies, and procedures as appropriate.  Participates in and makes presentations to the City Council members and EPASD Board of Directors and a wide variety of committees, boards, and commissions; performs financial review of matters pertaining to the various committees, such as determining appropriate rates of City and EPASD services.  Attends and participates in professional group meetings; stays abreast of new trends and innovations in the field of finance and other services as they relate to the area of assignment.  Maintains and directs the maintenance of working and official departmental files.  Monitors changes in laws, regulations, and technology that may affect City, EPASD, or departmental operations; implements policy and procedural changes as required.  Prepares, reviews, and presents staff reports, various management and information updates, and reports on special projects as assigned by the City Manager/General Manager.  Responds to difficult and sensitive public inquiries and complaints and assists with resolutions and alternative recommendations.
 Performs other related duties as assigned.

JOB-RELATED QUALIFICATIONS
Knowledge of:
 Principles and practices of employee supervision, including work planning, assignment review and evaluation, discipline, and the training of staff in work procedures.  Principles and practices of leadership.
 Organization and management practices as applied to the development, analysis, and evaluation of programs, policies, and operational needs of the assigned area of responsibility.  Administrative principles and practices, including goal setting, program development, implementation, and evaluation, and supervision of staff, either directly or through subordinate levels of supervision.  Public agency budget development, contract administration, City-wide and EPASD administrative practices, and general principles of risk management related to the functions of the assigned area.  Principles and practices of governmental accounting, public finance administration and budgeting, auditing, and reconciliation; municipal taxation and revenue management.  Principles and practices of risk management, claims management, and asset protection.  Self-insurance plan program development and administration. 343
Finance Director/
District Treasurer

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 Applicable Federal, State, and local laws, regulatory codes, ordinances, risk management, asset protection, safety and worker's compensation programs, and procedures relevant to assigned area of responsibility.
 Methods and techniques for the development of presentations, contract negotiations, business correspondence, and information distribution; research and reporting methods, techniques, and procedures.
 Techniques for providing a high level of customer service effectively by dealing with the public, vendors, contractors, and City staff.
 The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
 Modern equipment and communication tools used for business functions and program, project, and task coordination.
 Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

Ability to:
 Select and supervise staff, provide training and development opportunities, ensure work is performed effectively, and evaluate performance in an objective and positive manner.  Provide administrative, management, and professional leadership for the Finance Department programs.
 Prepare and administer large and complex budgets; allocate limited resources in a cost-effective manner.  Research, analyze, and evaluate new service delivery methods, procedures, and techniques.  Effectively administer special projects with contractual agreements and ensure compliance with stipulations; effectively administer a variety of finance programs and administrative activities.  Prepare clear and concise reports, correspondence, policies, procedures, and other written materials.  Conduct complex research projects, evaluate alternatives, make sound recommendations, and prepare effective technical staff reports.
 Manage and direct a comprehensive risk management program.  Plan, organize, direct, and coordinate a variety of risk management programs to meet City and EPASD needs.
 Establish and maintain a variety of filing, record-keeping, and tracking systems.  Understand, interpret, and apply all pertinent laws, codes, regulations, policies and procedures, and standards relevant to work performed.
 Effectively represent the department and the City and the EPASD in meetings with governmental agencies; community groups; various business, professional, and regulatory organizations; and in meetings with individuals.
 Learn and understand the organization and operation of the City, EPASD, and of outside agencies as necessary to assume assigned responsibilities.
 Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.
344
Finance Director/
District Treasurer

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Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to a bachelor’s degree in finance, accounting, economics, business or public administration, or a related field and seven (7) years of management and/or administrative experience in municipal finance and accounting.

Licenses and Certifications:
 Possession of a valid California Class C Driver’s License and a good driving record, at the time of appointment.
 Possession of a Certified Public Accountant license in the State of California is highly desirable.

PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer, to operate a motor vehicle, and to visit various City and meeting sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups, and over the telephone. This is primarily a sedentary office classification although standing and walking between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information.

ACCOUNTANT SENIOR

DEFINITION
Under general supervision, performs financial accounting and record keeping, budget preparation, analysis and maintenance, payroll analyses, reconciliation of various accounts, benefit management such as OPED, internal control reporting, maintenance of capital asset program, purchasing activities and a variety of professional accounting tasks relative to assigned area of responsibility for the City and East Palo Alto Sanitary District (EPASD).

SUPERVISION RECEIVED AND EXERCISED
Receives general direction from the Finance Director or Financial Services Manager as assigned.

Indirectly supervises technical and clerical staff in Finance as assigned.

DISTINGUISHING CHARACTERISTICS
Accountant Senior is an advanced journey level accounting position and is a member of the midmanagement employee unit. Incumbents are expected to perform the full scope of professional accounting duties with considerable independence and minimum direction, and to oversee lower-level staff work to ensure adherence to quality and timely work products in assigned areas of responsibility.

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• Performs and ensures the internal control set-up, testing, and monitoring for accounts payable, accounts receivable, and payroll.
• Audits cash receipts and disbursements; allocates revenue to proper cost accounts. • Assists in the implementation and update of the accounting and cost system; provides system user training to other staff as required.
• Gathers financial and statistical information and materials for various reports and year-end auditing process; compiles, reconciles, and verifies information and prepares financial, Federal, and State mandated reports.
• Prepares and submits financial reports and other information required by outside agencies, including the County, the State, and the federal such as annual reports of financial transactions to the State Controller, the annual State Streets Report, Federal Employment Survey, and other reports as required.
• Performs capital asset accounting, including maintaining accurate and up-to-date accounting asset records and providing thorough statistics for capital and operating budgets. • Assists in the preparation of audit deliverables for external auditors and coordinates their fieldwork activities.
• Prepare written memos, letters, reports, standard operating procedures, policies, and publications for effective communication with internal and external customers. • Performs other duties as assigned.

JOB-RELATED QUALIFICATIONS
Knowledge of:
• Principles, practices, methods, and techniques used in governmental accounting, public finance administration and budgeting.
• Terminology and practices of financial processing, record keeping, and financial reporting including general ledger, payroll, accounts payable, accounts receivable and year-end audit work. • Benefit management such as OPEB.
• Principles and practices of auditing payroll, accounts receivable, and other accounting and finance documents.
• Principles and practices of accounting systems, fund accounting and public agency operating and budgeting, including budget preparation and analysis
• Internal control set-up, testing, and monitoring for accounts payable, accounts receivable, and payroll.State and Federal regulations and guidelines as they pertain to municipal finance, municipal taxation and revenue management.
• Terminology and practices of financial processing, record keeping, and financial reporting. • Principles and practices of preparing and reviewing finance documents. • Business arithmetic and basic financial and statistical techniques. • Record keeping principles and procedures.
• Computer equipment and computer applications related to work, including financial systems, word processing, spreadsheet, presentation and database software. • English usage, grammar, spelling, vocabulary, and punctuation. • Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
• Basic knowledge of Utility operations and corresponding accounting/finance operations.

Ability to:
• Assist in the development of goals, objectives, policies, procedures, and work standards. • Prepare, process, maintain, and reconcile ledgers and journals according to accepted accounting policies and procedures.
• Convey oneself to and from departments at different geographical locations. 347
Accountant Senior

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• Independently carry out complex accounting and auditing work. • Compile and analyze financial reports.
• Prepare clear, comprehensive, and accurate reports and statements. • Examine and verify financial documents.
• Learn, retain, interpret and apply financial regulations and policies. • Perform detailed accounting and finance tasks accurately and in a timely manner. • Handle and prioritize a variety of assignments and meet deadlines. • Perform detailed and accurate work product in Microsoft Word, Excel, PowerPoint, and Outlook, and financial accounting system(s).
• Correspond with banking institutions, government agencies, and auditors (among others) regarding City and EPASD financial transactions and reports.
• Write clear and concise reports, correspondence, procedures and other written materials. • Make accurate arithmetic, financial, and statistical computations. • Organize own work, set priorities, and meet critical time deadlines. • Coordinate closely with employees and departments to achieve deadlines and project requirements. • Perform basic statistical analysis and conduct research studies. • Collect, compile, summarize and maintain accurate records and files. • Use English effectively to communicate in person, over the telephone, and in writing. • Use tact, initiative, prudence, and independent judgment within policy, procedural, and legal guidelines.
• Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

QUALIFICATIONS:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Education: Equivalent to a bachelor’s degree with major coursework in Accounting, Finance, Business Administration, Public Administration or a related field.

Experience: Four (4) years of experience performing progressively responsible accounting and auditing experience preferably within a municipality. Training and experience working in governmental and municipal fund accounting is highly desirable.

Licenses and Certifications:
 The ability to convey oneself to and from geographical locations frequently and timely.  If operating a City vehicle, a CA driver’s license is required.

PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; to operate a motor vehicle and to visit various town and meeting sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups and over the telephone. This is primarily a sedentary office classification although standing in work areas and walking between work areas may be required. Finger dexterity is needed to access, enter and retrieve data using a computer keyboard, typewriter keyboard or calculator and to operate standard office equipment.

Positions in this classification occasionally bend, stoop, kneel, reach, push and pull drawers open and closed to retrieve and file information. Employees must possess the ability to lift, carry, push, and pull materials and objects necessary to perform job functions. Employees must possess the ability to lift, carry, push, and pull materials and objects weighing up to 25 pounds. 348
Accountant Senior

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ENVIRONMENTAL CONDITIONS
Employees work in an office environment with moderate noise levels, controlled temperature conditions and no direct exposure to hazardous physical substances. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures. 349
March 2025
FLSA: Exempt

CITY CLERK PUBLIC INFORMATION OFFICER

DEFINITION
Under administrative direction, plans, organizes, manages, and provides direction and oversight for all functions and activities of the City Clerk s Office and EPASD within assigned area, including administration, election management, the legislative function, archiving of public records and public information; serves as the elections filing officer; coordinates assigned activities with other City departments, officials, outside agencies, and the public; fosters cooperative working relationships among City departments and with State and local intergovernmental and regulatory agencies and various public and private groups; provides highly responsible and complex administrative support to the City Manager/General Manager and the City Council; and performs related work as required.

In addition, the City Clerk- Public Information Officer serves as the Secretary for the East Palo Alto Sanitation District (EPASD); and performs related work as required.

SUPERVISION RECEIVED AND EXERCISED
Receives administrative direction from the City Manager/General Manager and the City Council and EPASD Board. The work provides for a wide variety of independent decision-making, within legal and general policy and regulatory guidelines. Exercises technical and functional direction over and provides training to lower-level staff.

DISTINGUISHING CHARACTERISTICS
This classification oversees, directs, and participates in all activities of the City Clerk s Office and EPASD, including short- and long-term planning and development and administration of departmental policies, procedures, and services. Successful performance of the work requires knowledge of public policy, municipal functions and activities, including the role of an elected City Council, and the ability to develop, oversee, and implement projects and programs in a variety of areas. Responsibilities include coordinating the activities of the City Clerks Office and EPASD with those of other departments and outside agencies and managing and overseeing the complex and varied functions EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.
 Assumes full management responsibility for all programs, services, and activities of the City Clerk s Office and EPASD, including administration, public information, election management, and records management.
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City Clerk- Public Information Officer

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 Develops, directs, and coordinates the implementation of goals, objectives, policies, procedures, and work standards for the EPASD; establishes, within City policy, appropriate budget, service, and staffing levels.
 Manages and participates in the development and administration of the department’s annual budget; directs the forecast of additional funds needed for staffing, equipment, materials, and supplies; directs the monitoring of and approves expenditures; directs and implements adjustments as necessary.  Coordinates EPASD activities with those of other departments and outside agencies and organizations; provides staff assistance to the City Manager/General Manager and City Council; prepares and presents staff reports and other necessary correspondence.
 Plans, manages, and conducts municipal elections and special elections; ensures conformance with the California Elections Code, Political Reform Act, and other government codes; coordinates, receives, and certifies sufficiency/insufficiency of ballot measures, initiative petitions, arguments, rebuttals, referendums, recalls, and impartial analyses; prepares municipal legislation as required; prepares candidate’s notebooks and provides necessary information to candidates, committees, and the public; serves as filing officer for the Fair Political Practices Commission for campaign disclosure filings; maintains election documents for public inspection; oversees printing of sample ballot material; declares election results; administers and files oaths of office.  Oversees the operations of the City-wide and EPASD records management program, document imaging system, and records preservation and destruction; sets and ensures legal compliance retention schedules for City and EPASD records; develops and updates records retention policies and procedures; researches City documents, historical information, and other information as needed; attests, indexes, and files all legislative actions.
 Maintains custody of the City Seal, ensuring authentication of only approved documents.  Serves as Public Records Coordinator; ensures compliance with the Public Records Act, the Freedom of Information Act, and the Brown Act; reviews and monitors legal requests for records; ensures that all public records are open to inspection at all times during office hours and that every person’s right to inspect any public record of the City is upheld.
 Serves as the Clerk of the City Council; attends meetings and oversees the recording of all official proceedings; supervises the preparation of public notifications, agendas, minutes, and other documents; directs the publication, filing, indexing, and safekeeping of all proceedings of the City Council.  Administers the public hearing process for the City Council; supervises the coordination of public hearing packets and public notices of hearings in accordance with various government code requirements and legal deadlines.
 Serves as Filing Officer and Filing Official for the Political Reform Act; manages the City’s disclosure requirements for designated employees, including composing and presenting legislation; ensures all candidates, political committees, elected officials, appointed officers, and designated employees file timely and complete campaign disclosure forms; distributes forms and notifications; conducts required audits; advises candidates, committees, and treasurers on filing requirements; determines and collects fines for late filing; ensures campaign contribution limits and other requirements are met; corresponds with the Fair Political Practices Commission (FPPC) as appropriate.  Administers and manages a variety of functions in the City Clerk's Office and EPASD including ensuring compliance with legal acts, including the Maddy Act; processing, filing, recording, and countersigning various documents and records; attesting all official documents of the City; receiving and distributing all subpoenas and claims; and preparing State filings.  Serves as the secretary for EPASD.
 Manages the codification and distribution of revisions to the Municipal Code. 351
City Clerk- Public Information Officer

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 Represents the City Clerk Office and EPASD to other City departments, elected officials, and outside agencies; explains and interprets departmental programs, policies, and activities; negotiates and resolves significant and controversial issues.
 Attends and participates in professional group meetings and committees; stays abreast of new trends and innovations in the field of municipal government.
 Monitors changes in laws, regulations, and technology that may affect City or departmental operations; implements policy and procedural changes as required.
 Responds to difficult and sensitive public inquiries and complaints and assists with resolutions and alternative recommendations.
 Performs other related duties as assigned.

JOB-RELATED QUALIFICATIONS
Knowledge of:
 Principles and practices of employee supervision, including work planning, assignment review and evaluation, discipline, and the training of staff in work procedures.  Principles and practices of leadership.
 Organization and management practices as applied to the development, analysis, and evaluation of programs, policies, and operational needs of the assigned area of responsibility.  Administrative principles and practices, including goal setting, program development, implementation, and evaluation, and supervision of staff, either directly or through subordinate levels of supervision.  Public agency budget development, contract administration, City-wide administrative practices, and general principles of risk management related to the functions of the assigned area.  Principles, practices, and procedures related to public agency record keeping, municipal elections, and the City Clerk function.
 Functions, authority, responsibilities, and limitations of an elected City Council.  Automated and manual records management principles and practices, including legal requirements for recording, retention, and disclosure.
 Applicable Federal, State, and local laws, rules, regulations, ordinances, and organizational policies and procedures relevant to assigned area of responsibility, including Public Records Act, the Freedom of Information Act, and the Brown Act, FPPC procedures and regulations, and election laws and procedures.
 Techniques for providing a high level of customer service by effectively interacting with members of the public, including individuals of diverse socioeconomic, ethnic, and cultural backgrounds in person and over the phone.
 The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
 Modern equipment and communication tools used for business functions and program, project, and task coordination.
 Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

Ability to:
 Assist in developing and implementing goals, objectives, practices, policies, procedures, and work standards.
 Prepare and administer budgets; allocate limited resources in a cost-effective manner. 352
City Clerk- Public Information Officer

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 Interpret, apply, explain, and ensure compliance with Federal, State, and local laws, rules, regulations, policies, and procedures.
 Plan, organize, direct, and coordinate the work of supervisory, technical, and administrative personnel; delegate authority and responsibility.
 Research, analyze, and evaluate new service delivery methods, procedures, and techniques.  Coordinate municipal elections within legal guidelines.  Oversee and coordinate maintenance of the official records of the City and EPASD.  Prepare official minutes, resolutions, ordinances, clear and concise reports, correspondence, policies, procedures, and other written materials.
 Conduct complex research projects, evaluate alternatives, make sound recommendations, and prepare effective technical staff reports.
 Establish and maintain a variety of filing, record-keeping, and tracking systems.  Effectively represent the department, EPASD, and the City in meetings with governmental agencies; community groups; various business, professional, and regulatory organizations; and in meetings with individuals.
 Learn and understand the organization and operation of the City, EPASD, and of outside agencies as necessary to assume assigned responsibilities.
 Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to an associate degree in public or business administration and seven (7) years of increasingly responsible experience in a City Clerk’s or Deputy City Clerk’s office, including three (3) years of lead experience and/or supervisory training.

Licenses and Certifications:
 Possession of a valid California Class C Driver’s License and a good driving record, at the time of appointment.
 Possession of a Notary Public certification.
 Possession of a Certified Municipal Clerk certification.

PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; to operate a motor vehicle and to visit various City and meeting sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups, and over the telephone. This is primarily a sedentary office classification although standing and walking 353
City Clerk- Public Information Officer

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between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information. Employees must possess the ability to lift, carry, push, and pull materials and objects up to 25 pounds.

Page 1 of 3 ends

SPECIAL PROJECTS MANAGER

DEFINITION
Under the general direction of the City Manager or designee (i.e., a Department Head), requiring organizational skills and related experience for specific or time sensitive projects or to alleviate the backlog in the following areas:
• Finance
• Public Works
• Community Development
• Administration
The position provides the following, but is not limited to organizational efficiency, support involving specific projects, assistance with administrative and special studies, assistance in alleviating a backlog of work, written reports or other work product, consultation and presentations, and may supervise staff on a temporary basis

SUPERVISION RECEIVED AND EXERCISED
This mid-managerial level position reports directly to the City Manager or designee and will exercise functional, technical, or advisory oversight and/or review role within the department, as needed.

DISTINGUISHING CHARACTERISTICS
Positions at this level are distinguished by their supervisory or mid-managerial level of responsibility assumed, complexity of duties assigned, and independence of action taken.

Employees at this level are required to be fully trained in all procedures and regulations related to assigned areas of responsibility.

EXAMPLES OF TYPICAL JOB FUNCTIONS (include, but are not limited to the following) • Ability to communicate problems effectively in either written or verbal form. • Maintains effective working relationships with all levels of staff and with the public. • Ability to demonstrate initiative, problem solve, and participate in generating options for solving issues.
• Demonstrate independence and initiative in the timely and accurate preparation and processing of studies and reporting.
355
Special Projects Manager

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• Highly skilled the areas of developing, implementing programs, policies and plans related to facets of City government as specified by the City Manager or designee. • Well organized with attention to detail and ability to effectively prioritize in a fast paced, challenging environment.

EDUCATION AND EXPERIENCE
Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to an Associate’s degree in an area related to appointment or public administration, or a related field and two (2) years of management and/or administrative experience. Possession of a valid California Class C Driver’s License and a good driving record, at the time of appointment.

SELECTION GUIDELINES
This position is intended to be filled upon recommendation of placement by the City Manager.

Duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position.

The job description does not constitute an employment agreement between the employer and employee and is subject to change by the employer as the needs of the employer and

SALARY AND BENEFITS
The following salary scale is approved for this limited duration Extra Help appointment:
356
Special Projects Manager

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LIMITED

DURATION

CLASSIFICATION
Special Projects - Manager
Hourly 65.10 69.33
Bi-Weekly
Monthly
Annual
All benefits offered and accruing to the non-represented executive class of the City shall accrue to this limited duration assignment.
357
Public Works Director/ District Engineer (Executive )
Step A Step B Step C Step D Step E
Hourly 94.3721 99.0907 104.0453 109.2475 114.7099
Bi-Weekly 7,549.77 7,927.26 8,323.62 8,739.80 9,176.79
Monthly 16,357.83 17,175.73 18,034.51 18,936.24 19,883.05 Annual 196,294.01 206,108.71 216,414.15 227,234.86 238,596.60 Director of Finance/District Treasurer (Executive)
Step A Step B Step C Step D Step E
Hourly 92.1429 96.7500 101.5875 106.6669 112.0003
Bi-Weekly 7,371.43 7,740.00 8,127.00 8,533.35 8,960.02
Monthly 15,971.44 16,770.01 17,608.51 18,488.93 19,413.38 Annual 191,657.23 201,240.09 211,302.09 221,867.20 232,960.56 Paralegal (Non-Bargaining - SEIU)
Step A Step B Step C Step D Step E
Hourly 42.4742 44.5979 46.8278 49.1692 51.6276
Bi-Weekly 3,397.94 3,567.83 3,746.22 3,933.53 4,130.21
Monthly 7,362.19 7,730.30 8,116.82 8,522.66 8,948.79
Annual 88,346.32 92,763.63 97,401.81 102,271.90 107,385.50 Recreation Leader I FT (SEIU)
Step A Step B Step C Step D Step E
Hourly 17.4500 18.3225 19.2386 20.2006 21.2106
Bi-Weekly 1,396.00 1,465.80 1,539.09 1,616.04 1,696.85
Monthly 3,024.67 3,175.90 3,334.70 3,501.43 3,676.50
Annual 36,296.00 38,110.80 40,016.34 42,017.16 44,118.01 Information Technology Specialist I (SEIU)
Step A Step B Step C Step D Step E
Hourly 35.5998 37.3798 39.2488 41.2112 43.2718
Bi-Weekly 2,847.99 2,990.38 3,139.90 3,296.90 3,461.74
Monthly 6,170.63 6,479.17 6,803.12 7,143.28 7,500.44
Annual 74,047.61 77,749.99 81,637.49 85,719.37 90,005.34 Information Technology Specialist II (SEIU)
Step A Step B Step C Step D Step E
Hourly 44.4733 46.6970 49.0318 51.4834 54.0576
Bi-Weekly 3,557.87 3,735.76 3,922.55 4,118.67 4,324.61
Monthly 7,708.71 8,094.14 8,498.85 8,923.79 9,369.98
Annual 92,504.49 97,129.72 101,986.20 107,085.51 112,439.79 358
Accountant Senior (MEA)
Step A Step B Step C Step D Step E
Hourly 49.8398 52.3318 54.9483 57.6958 60.5806
Bi-Weekly 3,987.18 4,186.54 4,395.87 4,615.66 4,846.44
Monthly 8,638.89 9,070.84 9,524.38 10,000.60 10,500.63
Annual 103,666.72 108,850.06 114,292.56 120,007.19 126,007.55 359
360
361
INFORMATIONAL REPORT 6.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: March 18, 2025
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: James Colin, City Clerk
SUBJECT: Automated License Plate Reader Implementation Update Recommendation
Receive informational report about the Automated License Plate Reader Implementation.

Attachments

1. Proclamation
362
EPASD BOARD CONSENT ITEM 10.1

EAST PALO ALTO

SANITARY DISTRIC

STAFF REPORT
DATE: March 18, 2025
TO: Honorable Members of the City of East Palo Alto City Council, Governing Board to the East Palo Sanitary District, a Subsidiary of the City of East Palo Alto
VIA: Melvin E. Gaines, General Manager
BY: Tomohito Oku, District Treasurer
Bo-Kyoung Kim, Financial Services Manager
SUBJECT: Cash Disbursement Report for January 2025
Recommendation
Accept the cash disbursement report required pursuant to California Health and Safety Code Section 6794.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No 3: Promote Health & Public Safety.

Priority No 4: Ensure Our Financial and Organizational Health Background
On November 15, 2023, the San Mateo Local Area Formation Commission (“LAFCo”) unanimously approved the City of East Palo Alto’s application requesting that the East Palo Alto Sanitary District (“District” or “EPASD”) be made a subsidiary of the City of East Palo Alto.

On October 1, 2024, the reorganization of the District as a subsidiary of the City of East Palo Alto (City), and the City Council its governing board, became effective. Prior to and since that time, staff has worked diligently toward a peaceful and smooth transition. To that end, one aspect of that transition has required staff to review local rules and regulations of EPASD that may require amendment in light of the reorganization. 363
EPASD BOARD CONSENT ITEM 10.1
California Health and Safety Code (H&S) Section 6794 allows the Board to adopt a procedure that provides for checks or warrants to pay claims and demands without approval by the Board of Directors before payment if the District Treasurer determines that the demands are payable within the District’s approved budget.

On December 3, 2024, the Board adopted an ordinance amending various provisions of the Sanitary District Code including Section 303 Appointed Positions, which authorizes District Treasurers to perform duties including the deposit and withdrawal of funds of the District, issuance of checks or warrants to pay claims and demands without approval by the Board before payment if the District Treasurer determines that the demands are payable within the District’s approved budget.

Furthermore, H&S Section 6794 requires staff to present cash disbursements to the Board at the next regular Board meeting and seek Board approval if demands exceed the District’s approved budget.

This staff report is informational and includes all cash disbursements for the month ending January 31, 2025, approved by District Treasurer. As of January 31, 2025, the actual expenses did not exceed the District’s approved budget.

Analysis
The following cash disbursements have been approved by the District Treasurer pursuant to the District Code Section 303, and are hereby reported to the Board:

EPASD Cash Disbursement Reports
For Period Ending January 31, 2025
Name Description Check
amount
Check
number*
Check Issue
Date
AT&T Monthly phone service Dec 2-Jan 1 $ 521.54 71362 1/24/2025 CALIF PUBLIC EMPLOYEES' EPASD CALPERS Jan 2025 $ 53.67 759 1/30/2025 CALIF PUBLIC EMPLOYEES' EPASD CALPERS Jan 2025 $ 2,290.25 759 1/30/2025 CALIF PUBLIC EMPLOYEES' EPASD CALPERS JAN 2025 $ 6,808.58 759 1/30/2025 CALIF PUBLIC EMPLOYEES' EPASD CALPERS JAN 2025 $ 10,075.43 759 1/30/2025 CITY OF PALO ALTO 2ND QUARTER FY24-25 Q&M OF RWQCP $ 63,844.10 71314 1/17/2025 COMCAST EPASD $ 1,273.33 71278 1/10/2025
COMCAST Recurring charges for ACCT#905067630 $ 419.77 71366 1/24/2025 FRANK & GROOSMAN LANDSCAP Deep Clean Entire Office Work Completed $ 5,500.00 71259 1/7/2025 PACIFIC GAS & ELECTRIC reocurring charges for electric $ 422.29 71339 1/17/2025 RECOLOGY SAN MATEO COUNTY Waste for Dec 2024 EPASD $ 733.90 71342 1/17/2025 SWRCB Annual fees $ 297.00 71297 1/10/2025
VEOLIA WATER NORTH AMERIC EPASD WATER BILLS $ 223.97 71397 1/24/2025 VEOLIA WATER NORTH AMERIC EPASD WATER BILLS $ 64.55 71397 1/24/2025 VEOLIA WATER NORTH AMERIC METER BASE FEE FOR WATER SERVICES $ 632.92 71270 1/7/2025 WEST BAY SANITARY DISTRIC Maintenance services agreement & additional expenses 11/2024 $ 49,175.76 71301 1/10/2025 WEST BAY SANITARY DISTRIC Wash down the manhole and performed a manhole entry $ 868.27 71398 1/24/2025 364
EPASD BOARD CONSENT ITEM 10.1
Fiscal Impact
There are no budget impacts by this action as the year-to-date cash disbursements did not exceed the District’s approved budget.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Environmental
The proposed action is not a “project” under California Environmental Quality Act (CEQA) pursuant to CEQA Guideline section 15378(b)(4) because it is a fiscal activity which does Everon LLC
Batteries in certain zones were changed in order to help function of alarm system $ 250.00 71257 1/7/2025
Everon LLC Equipment lease $ 1,072.62 71375 1/24/2025
Everon LLC EPASD $ 2,175.00 71375 1/24/2025
40 Hrs, Inc. STAFF PAYMENT W/E 12/22/24 $ 5,227.60 71249 1/7/2025 40 Hrs, Inc. STAFF PAYMENT W/E 12/29/24 $ 5,437.62 71273 1/10/2025 40 Hrs, Inc. STAFF PAYMENT W/E 1/5/25 $ 821.35 71273 1/10/2025 AppleOne, Inc Staffing Services $ 3,423.39 71251 1/7/2025 AppleOne, Inc Staffing Services $ 2,656.53 71360 1/24/2025 AppleOne, Inc Staffing Services $ 2,404.71 71360 1/24/2025 Akintunde A Okupe Monthly car allowance Dec 2024 $ 400.00 71250 1/7/2025 Akintunde A Okupe Monthly car allowance JAN 2025 $ 266.00 71308 1/17/2025 Sierra West Consultants, Inc professional construction support services $ 1,522.00 71391 1/24/2025 UniFirst Corporation uniforms and supplies $ 233.99 71269 1/7/2025 UniFirst Corporation uniforms and supplies $ 2,404.27 71300 1/10/2025 UniFirst Corporation uniforms and supplies $ 167.57 71396 1/24/2025 Green Source Janitorial Monthly Janitorial Service Jan 2025 $ 1,953.00 71327 1/17/2025 Jeanpierre Wegem Alabi And CO LLP Accounting, HR and Consulting Services for DEC 2024 $ 10,156.94 71285 1/10/2025 Jeanpierre Wegem Alabi And CO LLP Accounting, HR and Consulting Services for JAN 2025 $ 3,931.72 71381 1/24/2025 ADP PAYROLL TAX EPASD $ 662.56 758 1/30/2025
ADP PAYROLL TAX EPASD $ 3,608.89 758 1/30/2025
ADP PAYROLL TAX EPASD $ 886.17 758 1/30/2025
ADP PAYROLL TAX EPASD $ 24,524.02 758 1/30/2025
ADP PAYROLL TAX EPASD $ 2,152.89 758 1/30/2025
ADP PAYROLL TAXES EPASD $ 73,653.93 758 1/30/2025
ADP PAYROLL TAX EPASD $ 384.28 758 1/30/2025
ADP PAYROLL FEES EPASD $ 49.85 758 1/30/2025
ADP PAYROLL FEES EPASD $ 49.85 758 1/30/2025
ADP PAYROLL FEES EPASD $ 51.85 758 1/30/2025
ADP PAYROLL FEES EPASD $ 121.40 758 1/30/2025
ADP PAYROLL FEES EPASD $ 49.85 758 1/30/2025
ADP PAYROLL WAGE EPASD $ 9,257.51 758 1/30/2025
ADP PAYROLL WAGE EPASD $ 36,591.38 758 1/30/2025
Degree HVAC, Inc Labor and Materials to fix Reznor $ 2,825.00 71370 1/24/2025 Tripepi, Smith & Associates, Inc EPASD CRISIS COMMUNICATIONS PRESS RELEASE $ 622.50 71353 1/17/2025 Ranger Pipeline, Inc
Remaining balance for change orders for SSRP/Application for PA #11 $ 250,721.44 71400 1/29/2025
Total $ 593,923.01
*Manual checks have three-digit check numbers.
365
EPASD BOARD CONSENT ITEM 10.1
not involve any commitment to any specific project which may result in a potentially significant impact on the environment.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action involves no entitlement.

Analysis of Levine Act Compliance: Not applicable.

Attachments: None.
366
EPASD POLICY AND ACTION ITEM 13.1

EAST PALO ALTO

SANITARY DISTRIC

STAFF REPORT
DATE: March 18, 2025
TO: Honorable Members of the City of East Palo Alto City Council, Governing Board to the East Palo Alto Sanitary District, a Subsidiary of the City of East Palo Alto VIA: Melvin E. Gaines, General Manager
BY: Tomohito Oku, Finance Director/District Treasurer
SUBJECT: Accept Annual Financial Reports for Fiscal Year 2023-24 Recommendation
Adopt a resolution:

1. Accepting and directing staff to file with the State Controller’s Office the Annual Audited Financial Reports for Fiscal Year 2023-24; and

2. Finding that the proposed action does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is related to government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No 3: Promote Health & Public Safety.

Priority No 4: Ensure Our Financial and Organizational Health Background
State law requires that special districts issue annual financial reports prepared in accordance with generally accepted accounting principles (GAAP), so that the financial position and results of operations of each government entity is publicly available to residents, legislators, financial institutions, and other interested parties.
367
EPASD POLICY AND ACTION ITEM 13.1
Effective October 1, 2024, the East Palo Alto Sanitary District (District) was reorganized as a subsidiary of the City of East Palo Alto (City), with the City Council serving as its governing board. David Farnsworth, Certified Public Accountant, has provided financial auditing services to the District since the 2019-20 fiscal year.

This audited financial report covers the fiscal year from July 1, 2023, to June 30, 2024, during which the prior administrator oversaw operations. However, the District is under new management who is responsible for preparing and fairly presenting the financial statements in accordance with generally accepted accounting principles in the United States. We are also responsible for designing, implementing, and maintaining internal controls to ensure the financial statements are free from material misstatements, whether due to fraud or error.

Analysis
David Farnsworth, Certified Public Accountant, has completed the annual audit and issued the District’s annual financial statements and other required reports. The auditor will be presenting an overview of the audit results and will be available to answer any additional questions regarding the reports. The District received an “unmodified” audit opinion which means the independent auditor reviewed the financial records and found that they were presented fairly and accurately, according to the Generally Accepted Accounting Principles (GAAP) on the annual financial report for the fiscal year ended June 30, 2024. As a result of audit procedures, however, the auditor identified material weaknesses in internal control due to multiple instances found in the District’s financial processes which are detailed in the communication letter to the governing board regarding significant deficiencies and material weaknesses in internal control (Attachment 4).

Below is a summary description of the annual financial report:
1) Independent Auditor's Report
This section provides the auditor’s professional opinion on whether the financial statements fairly present the financial position and results of operations of the organization. It outlines the scope of the audit, the standards followed, and any key findings. It may also include a statement on the auditor’s independence and any limitations or concerns regarding financial reporting.
2) Management’s Discussion and Analysis (MD&A)
This is a narrative overview prepared by management that explains the organization’s financial performance over the past year. It highlights key financial trends, significant changes in revenues and expenses, and factors affecting the financial position. It often includes comparisons to the previous year and insights into budget performance, capital projects, and future financial outlook.
3) Basic Financial Statements
368
EPASD POLICY AND ACTION ITEM 13.1
This section contains the core financial reports that present the organization’s financial health. It includes:
 Statement of Net Position: A snapshot of assets, liabilities, deferred inflows and outflows, and net position at year-end.
 Statement of Revenues, Expenses, and Changes in Net Position: A summary of financial activities, showing income, expenses, and changes in financial position.  Statement of Cash Flows: An overview of cash inflows and outflows from operations, financing, and investing activities.
 Notes to the Financial Statements: Detailed explanations of accounting policies, significant transactions, and any additional financial information. 4) Required Supplementary Information
This section includes additional financial data required by accounting standards. It consists of:
 Pension and OPEB (Other Post-Employment Benefits) schedules showing contributions, liabilities, and funding status.

Fiscal Impact
There is no fiscal impact by this item.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin, board located at City Hall: 2415 University Avenue, East Palo Alto.

Environmental
The proposed action does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is related to government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not involve an entitlement.

Analysis of Levine Act Compliance: Not applicable.
369
EPASD POLICY AND ACTION ITEM 13.1
Attachment:

1. Resolution

2. Annual Financial Report

3. Communication letter to the Board of Directors

4. Communication letter regarding internal controls
370
DRAFT
Resolution No. XX-2025 1 of 2
RESOLUTION NO. XX– 2025

A RESOLUTION OF THE BOARD OF

DIRECTORS OF THE EAST PALO ALTO

SANITARY DISTRICT

ACCEPTING AND DIRECTING STAFF TO FILE THE ANNUAL FINANCIAL REPORT WITH THE STATE CONTROLLER’S OFFICE FOR FISCAL YEAR 2023-24
WHEREAS, local government agencies are required by law to undertake an independent audit of the annual financial statements, and California Government Code Section 53891 requires each local agency to provide an annual report of financial transactions to the State Controller’s Office containing data from audited financial statements prepared in accordance with generally accepted accounting principles; and
WHEREAS, the East Palo Alto Sanitary District (“District”) engaged David Farnsworth, Certified Public Accountant, as the District’s independent auditor for the fiscal year 2023-24; and WHEREAS, the annual financial audit for fiscal year ended June 30, 2024, was conducted in accordance with auditing standards generally accepted in the United States of America; and WHEREAS, the District received an auditor opinion that the financial statements referred to above present fairly, in all material respects, the respective financial position of the District, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

NOW, THEREFORE, BE IT RESOLVED THAT THE BOARD OF DIRECTORS OF THE EAST PALO ALTO SANITARY DISTRICT hereby:

1. Finds the foregoing recitals are true and correct, and are incorporated by this reference into this action;

2. Accepts the annual financial report for Fiscal Year Ending June 30, 2024;

3. Directs staff to file the annual financial report with the State Controller’s Office, as required by law; and

4. Finds that the proposed action does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is related to government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment
PASSED AND ADOPTED 18th day of March 2025, by the following vote:

AYES:
371
DRAFT
Resolution No. XX-2025 2 of 2
NOES:

ABSENT:

ABSTAIN:

Mark Dinan, Board President
ATTEST: APPROVED AS TO FORM:

James Colin, Secretary John D. Lê, District Counsel
372
East Palo Alto
Sanitary District
Annual Financial Report
June 30, 2024
373

EAST PALO ALTO SANITARY DISTRICT
Table of Contents
June 30, 2024
Independent Auditor’s Report ....................................................................................................................... 1 Management’s Discussion and Analysis ...................................................................................................... 3 Basic Financial Statements:

Statement of Net Position ......................................................................................................................... 8 Statement of Revenues, Expenses, and Changes in Net Position ............................................................. 9 Statement of Cash Flows ......................................................................................................................... 10 Notes to the Financial Statements ........................................................................................................... 12 Required Supplementary Information:

Schedule of Changes in the District’s Net OPEB Liability and Related Ratios ..................................... 28 Schedule of the District’s Contributions for OPEB ................................................................................ 29 Schedule of the District’s Proportionate Share of the Net Pension Liability .......................................... 30 Schedule of the District’s Pension Contributions ................................................................................... 31 Notes to the Required Supplementary Information................................................................................. 32 374
671 S Milpitas Blvd, Suite 217, Milpitas, California 95035 (408) 780-2236
www.dfarnsworthcpa.com
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
East Palo Alto Sanitary District
East Palo Alto, California
Opinion
We have audited the accompanying financial statements of the East Palo Alto Sanitary District as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the East Palo Alto Sanitary District’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the East Palo Alto Sanitary District, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the East Palo Alto Sanitary District, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the East Palo Alto Sanitary District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

375
2 In performing an audit in accordance with generally accepted auditing standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the East Palo Alto Sanitary District’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the East Palo Alto Sanitary District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of changes in the net District’s net OPEB liability and related ratios, the schedule of District’s contributions for OPEB, the schedule of the District’s proportionate share of the net pension liability, and the schedule of the District’s pension contributions, as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Milpitas, California
March 6, 2025
376

EAST PALO ALTO SANITARY DISTRICT
Management’s Discussion and Analysis
June 30, 2024
3 This section of the East Palo Alto Sanitary District financial statements presents management’s discussion and analysis of the District’s financial performance during the fiscal year ended June 30, 2024. Since this management’s discussion and analysis is designed to focus on current activities, resulting in change and current known facts, please read it in conjunction with the District’s basic financial statements and notes to the financial statements.

Financial Highlights
For the fiscal year ended June 30, 2024, the District’s net position increased by $6,163,550 from $31,268,479 to $37,432,029 in 2024, as can be seen on page 9. Operating revenue, which consists mainly of District user fees and connection fees, decreased by $1,522,582, or 23%, compared to the previous year.

Non-operating revenue, which consists of property tax and investment earnings increased by $1,193,826 or 74%. Capital contributions increased by $2,227,645. Operating expenses decreased by $3,937,311, or 53%. The overall increase in the District’s net position is due in large part to the increase in net capital assets of $4,468,105 as a result of capital projects being in progress. Current assets increased by $1,005,268. The unrestricted portion of the District’s net position (the portion available for capital projects and other expenditures) was $23,108,594 as of June 30, 2024, an increase of $1,828,031 compared to the previous year. The increase in the unrestricted portion is due to operating income of $5,043,168, nonoperating revenues of $1,193,826, and capital contributions of $2,227,645. The District reported special item expense, net of reimbursement of $360,893.

Overview of the Financial Statements
This management’s discussion and analysis is intended to serve as an introduction to the District's basic financial statements. The District's basic financial statements are comprised of two components: 1) the financial statements and 2) notes to the financial statements that explain in more detail some of the information in the financial statements.

Required Financial Statements
The financial statements of the District report information about the District using accounting methods similar to those used by private‐sector companies. These statements provide both long‐term and short‐term information about the District's overall financial status.

The statement of net position presents information on all of the District's assets deferred outflows of resources and liabilities deferred inflows of resources, with the difference between the four reported as net position. This statement or evaluating the capital structure of the District and assessing the liquidity and financial flexibility of the District provides information about the nature and the amounts of investments in resources (assets) and the obligations to District creditors (liabilities). It provides one way to measure the financial health of the District by providing the basis however, there are several outside nonfinancial factors that need to be considered, such as changing economic conditions, population and customer growth, and new or changed rules and regulations.

All of the current year's revenue and expenses are accounted for in the statement of revenues, expenses, and changes in net position. This statement measures the success of the District's operations over the past year and can be used to determine whether the District has successfully recovered all its cost through its user fees.

The final required statement is the statement of cash flows. The statement reports cash receipts, cash payments, and net changes in cash resulting from operating, noncapital financing, investing, and financing 377

EAST PALO ALTO SANITARY DISTRICT
Management’s Discussion and Analysis
June 30, 2024
4 activities. This statement provides answers to such questions as 'where did cash come from', 'what was cash used for', and 'what was the change in cash balance during the reporting period'.

Financial Analysis of the District
As previously noted, net position may serve over time as a useful indicator of an entity's financial position.

In the case of the District, assets exceeded liabilities by $37.43 million at the close of the most recent fiscal year. The largest portion of the District's net position (62%) reflect its unrestricted net position. Net investment in capital assets consists of 32% of total net position (e.g., sewers, buildings, machinery and equipment as of June 30, 2024. These capital assets are used primarily in the collection and treatment of wastewater throughout the District's service area. The related debt will be repaid with resources provided by system users through rates and fees. Restricted net position consists of 6% of total net position.

The following schedule is prepared from the District's Statement of Net Position, which is presented on the full accrual basis of accounting in which capital assets are systematically depreciated.

Increase Percent
2024 2023 (Decrease) Change
Current assets 24,415,653 $ 23,410,385 $ 1,005,268 $ 4.29% Noncurrent assets 2,321,934 2,282,781 39,153 1.72%
Capital assets, net 12,161,198 8,058,294 4,102,904 50.92% Total assets 38,898,785 33,751,460 5,147,325 15.25%
Deferred outflows 1,462,443 713,497 748,946 104.97%
Current liabilities 856,329 487,619 368,710 75.61%
Noncurrent liabilities 789,565 865,556 (75,991) -8.78%
Total liabilities 1,645,894 1,353,175 292,719 21.63%
Deferred inflows 1,283,305 1,843,303 (559,998) -30.38%
Net position 37,432,029 $ 31,268,479 $ 6,163,550 $ 19.71% Current assets increased by $1,005,268 compared to the prior year and the change is primarily due to:
 Cash increased by $933,054
 Receivables increased by $415,401
 Prepaid items decreased by $343,187
Noncurrent assets increased by $39,153 and capital assets, net of accumulated depreciation increased by $4,102,904 compared to the prior year and the change is primarily due to:
 Restricted cash decreased by $98,304
 Notes receivable decreased by $5,377
 Net OPEB asset increased by $142,834
 Capital assets, net of accumulated depreciation increased by $4,102,904 Deferred outflows increased by $748,946 compared to the prior year and the change is primarily due to:
 Pension related deferred outflows increased by $824,909  OPEB related deferred outflows decreased by $75,963
Current liabilities increased by $368,710 compared to the prior year and the change is primarily due to:
 Accounts payable and accrued liabilities increased by $653,678 378

EAST PALO ALTO SANITARY DISTRICT
Management’s Discussion and Analysis
June 30, 2024
5  Unearned income decreased by $260,541
 Current portion of long-term debt decreased by $24,427 Noncurrent liabilities decreased by $75,991 compared to the prior year and the change is primarily due to:
 Net pension liability decreased by $37,474
 Net OPEB liability decreased by $181,351 and reported a Net OPEB asset of $142,834.

Deferred inflows decreased by $559,998 compared to the prior year and the change in primarily due to:
 Pension related deferred inflows decreased by $659,143  OPEB related deferred inflows increased by $99,145
Change in Net Position
As can be seen above the District's net position increased by $6,163,550 this year from $31,268,479 in FY 2023 to $37,432,029 in FY 2024.

Increase Percent
2024 2023 (Decrease) Change
Operating revenues 5,043,168 $ 6,565,750 $ (1,522,582) $ -23.19% Operating expenses 3,551,685 7,488,996 (3,937,311) -52.57% Operating income 1,491,483 (923,246) 2,414,729 -261.55% Nonoperating revenue (expenses) 2,805,315 2,074,607 730,708 35.22% Capital contributions 2,227,645 - 2,227,645 Special items (360,893) - (360,893) Change in net position $ 6,163,550 $ 1,151,361 $ 5,012,189 435.33% The change in net position shows the Summary of Revenues, Expenses, and Changes in Net Position and provides details as to the nature and source of these changes. During 2024, total operating revenues decreased by $1,522,582. Total operating expenses decreased by $3,937,311. Non‐operating revenue and expenses increased by $730,708. This year the District reported special items expense, net of reimbursement of $360,893 related to loss due to fraud. The major factors which contributed to these results include:
 The decrease in operating revenues of $1,522,582 was due to a decrease in sewer service charges of $39,546, a decrease in developer fees and connection fees of $1,528,871, and an increase of $45,835 in other revenues
 The decrease in operating expenses of $3,937,311 was due to a decrease in personnel services of $2,848,119, a decrease of $1,107,161 in purchased services, an increase of $22,578 of utilities, fuel, and supplies, and a decrease in $42,021 in depreciation expense, and an increase of $37,412 in other expenses.
 The increase in nonoperating revenues (expenses) of $730,708 was due to an increase of $233,666 in property taxes, an increase of $495,276 in investment earnings, and a decrease of $1,766 in interest expense.
 The increase in capital contributions of $2,227,645 is due to an increase in development impact fees.
 The increase in special items expense is due to fraud, net of reimbursements of $360,893. 379

EAST PALO ALTO SANITARY DISTRICT
Management’s Discussion and Analysis
June 30, 2024
6 BUDGETARY HIGHLIGHTS
The District has an annual operating budget that is approved by its Board of Directors. Capital projects are approved on a project-by-project basis within the annually approved capital budget. Total budgeted revenues were reported in the amount of $5,863,210. Total budgeted expenses were reported in the amount of $17,800,400.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2024, the District's investment in capital assets, net of accumulated depreciation reported $12,161,198 and $8,058,294 as of June 30, 2024 and 2023, respectively. In 2024, the District spent $4,468,105 on a current construction project. Additional information on the District's capital assets can be found in Note 3 to the Financial Statements.

Increase Percent
2024 2023 Decrease Change
Land 184,601 $ 184,601 $ - $ - Construction in progress 6,676,749 2,208,644 4,468,105 202.30% Cured in place pipe 1,474,518 1,474,518 - 0.00%
Sewer collection facilities 8,216,243 8,216,243 - 0.00% Buildings 2,587,577 2,587,577 - 0.00%
Furniture and equipment 2,175,995 2,175,995 - 0.00%
Accumulated depreciation (9,154,485) (8,789,284) (365,201) 4.16% Capital assets, net $12,161,198 $ 8,058,294 $ 4,102,904 50.92% Debt Administration
The District paid off the notes payable as of June 30, 2024. Additional information on the District's long‐ term debt can be found in Note 5 to the financial statements.

ECONOMIC FACTORS AND THE NEXT YEAR’S BUDGETS AND RATES
The service area of the District is best described as mature. The District is not in a growth situation but one in which the system is continually televised, upgraded, and repaired given budgetary constraints.

Requests for Information
The financial report is designed to provide a general overview of the District's finances and operations for all those with an interest in the District's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to:

Office of the General Manager
East Palo Alto Sanitary District
901 Weeks Street
East Palo Alto, CA 94303
380

FINANCIAL STATEMENTS
381

EAST PALO ALTO SANITARY DISTRICT
Statement of Net Position
June 30, 2024
ASSETS
Current assets:

Cash 23,356,716 $
Intergovernmental receivable 198,806
Interest receivable 244,815
Rental receivable 3,030
Other receivable 158,787
Prepaid items 453,499
Total current assets 24,415,653
Noncurrent assets:

Restricted investments- held by pension trust 2,162,237 Notes receivable 16,863
Net OPEB assets 142,834
Capital assets:

Non depreciable capital assets 6,861,350
Capital assets, net of depreciation 5,299,848
Total non current assets 14,483,132
Total assets 38,898,785

DEFERRED OUTFLOWS OF RESOURCES
Pension related 1,201,130
OPEB related 261,313
Total deferred outflows of resources 1,462,443

LIABILITIES
Current liabilities:

Accounts payable 802,254
Accrued liabilities 8,124
Compensated absences 45,951
Total current liabilities 856,329
Noncurrent liabilities:

Net pension liability 789,565
Total non current liabilities 789,565
Total liabilities 1,645,894

DEFERRED INFLOWS OF RESOURCES
Pension related 1,139,433
OPEB related 143,872
Total deferred inflows of resources 1,283,305

NET POSITION
Net investment in capital assets 12,161,198
Restricted 2,162,237
Unrestricted 23,108,594
Total Net Position $ 37,432,029
The accompanying notes are an integral part of these financial statements. 8 382

EAST PALO ALTO SANITARY DISTRICT
Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended June 30, 2024
OPERATING INCOME:

Charges for services:

Sewer service charges 4,761,746 $
Connection fees 92,351
Miscellaneous 189,071
Total Operating Revenues 5,043,168
OPERATING EXPENSES:

Personnel services:

Salaries and benefits 584,608
Pension credit (1,448,842)
Purchased services 3,458,148
Utilities, fuel and supplies 176,676
Depreciation 365,201
Other expenses 415,894
Total operating expenses 3,551,685
Operating income 1,491,483
NONOPERATING REVENUES (EXPENSES):

Property taxes 1,734,764
Investment earnings 1,075,304
Interest expense (4,753)
Total Nonoperating Revenues (Expenses) 2,805,315
CAPITAL CONTRIBUTIONS 2,227,645

SPECIAL ITEMS
Loss due to fraud (360,893)
Total special items (360,893)
Change in Net Position 6,163,550
Net Position - Beginning 31,268,479
Net Position - Ending $37,432,029
The accompanying notes are an integral part of these financial statements. 9 383

EAST PALO ALTO SANITARY DISTRICT
Statement of Cash Flows
For the Year Ended June 30, 2024

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 4,782,627 $
Payments to suppliers (4,191,320)
Payments to employees (655,383)
Net cash provided by noncapital financing activities (64,076)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Property taxes 1,535,958
Net cash provided by noncapital financing activities 1,535,958

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (3,812,518) Capital contributions 2,227,645
Principal paid on debt (70,378)
Interest paid on debt (4,753)
Collections on note receivable 5,376
Net cash used for capital and related financing activities (1,654,628)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings 1,017,496
Net cash provided by investing activities 1,017,496
Net increase in cash and cash equivalents 834,750
Cash and cash equivalents at beginning of year (including $2,000,000 for the sewer fund reported in restricted accounts) 24,684,203
Cash and cash equivalents at end of year (including $2,162,237 for the sewer fund reported in restricted accounts) $ 25,518,953

RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED

BY OPERATING ACTIVITIES
Operating income 1,491,483 $
Adjustment to reconcile operating income to net cash provided by operating activities:

Depreciation expense 365,201
Changes in assets and liabilities:

Decrease in prepaid items 343,187
(Decrease) in operating accounts payable and accrued expenses 35,258 Decrease in unearned income (260,541)
Increase in compensated absences 8,783
Increase in net pension liability and related deferrals (1,521,525) Increase in net other postemployment benefits asset and related deferrals (6,242) Increase in other receivables and special items (519,680) Net cash provided by operating activities $ (64,076)
The accompanying notes are an integral part of these financial statements. 10 384

EAST PALO ALTO SANITARY DISTRICT
Index to Notes to the Financial Statements
June 30, 2024
11 Note 1 Summary of Significant Accounting Policies
A. Description of the Reporting Entity ............................................................................................. 12 B. Basis of Presentation and Accounting .......................................................................................... 12 C. Budgets and Budgetary Accounting ............................................................................................. 12 D. Cash and Cash Equivalents .......................................................................................................... 13 E. Prepaid Items ................................................................................................................................ 13 F. Capital Assets ............................................................................................................................... 13 G. Deferred Outflows and Inflows of Resources .............................................................................. 13 H. Postemployment Benefits Other Than Pensions (OPEB) ............................................................ 14 I. Pensions ........................................................................................................................................ 14 J. Compensated Absences ................................................................................................................ 14 K. Net Position .................................................................................................................................. 14 L. Revenues and Expenses................................................................................................................ 15 M. Special Items ................................................................................................................................ 16 Note 2–Cash and Investments .................................................................................................................. 16 Note 3–Capital Assets ............................................................................................................................... 18 Note 4–Compensated Absences................................................................................................................ 18 Note 5–Long-Term Debt ........................................................................................................................... 19 Note 6–Defined Benefit Pension Plan ...................................................................................................... 19 Note 7–Postemployment Benefits Other Than Pensions (OPEB) ......................................................... 22 Note 8–Risk Management ........................................................................................................................ 25 Note 9–Related Party Transactions ......................................................................................................... 25 Note 10–Special Items ............................................................................................................................... 26 Note 11–Subsequent Events ..................................................................................................................... 26 Note 12–Commitments and Contingencies ............................................................................................. 26 385

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
12 Note 1 – Summary of Significant Accounting Policies
A. Description of the Reporting Entity
The primary purpose of the East Palo Alto Sanitary District (District) is to provide safe, efficient and cost‐effective sanitary services to portions of East Palo Alto and Menlo Park, in San Mateo County.

The collection system carries wastewater from the District’s service area to the Palo Alto treatment plant where it is treated and disposed of in a manner which meets federal and state standards.

The District is governed by a five‐member Board of Directors elected at large to four-year terms by residents within the District.

The financial statements of East Palo Alto Sanitary District include only the financial activities of the District. The District management considered all potential component units for inclusion in the reporting entity by applying the criteria set forth in accounting principles generally accepted in the United States of America. The District concluded that there are no potential component units which should be included in the reporting entity.

B. Basis of Presentation and Accounting
The fund financial statements provide information about the District’s enterprise funds. Statements for proprietary funds are presented. The emphasis of fund financial statements is on major enterprise funds, each displayed in a separate column. Major individual enterprise funds are reported as separate columns in the funds financial statements.

The District reports the following major enterprise funds:

The sewer fund accounts for the activities of the District. The activities are financed in whole or in part by fees charged to external parties and are accounted for in an enterprise fund.

Enterprise funds maintain their records using the economic resources measurement focus and the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded when the related liability is incurred, regardless of the timing of the cash flows.

The statement of net position and the statement of revenues, expenses, and changes in net position displays information about the primary government (the District). Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the District. Exchange transactions are those which each party receives and gives up essentially equal values. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

C. Budgets and Budgetary Accounting
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the sewer enterprise fund.

The appropriated budget is prepared by fund, function, and department. The District General Manager is authorized to transfer any unencumbered amounts from one department to another within the same major account and to transfer any unencumbered appropriation from one line-item account to another within the same major account. The major accounts are defined as salaries and employee benefits, 386

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
13 maintenance and operation, capital outlay and reserves. Any additional appropriations require approval by the Board of Directors. Appropriations in all budgeted funds lapse at the end of the fiscal year.

D. Cash and Cash Equivalents
The District’s cash and cash equivalents include cash on hand, demand deposits, and short‐term investments with original maturities of three months or less from the date of acquisition. For purposes of the statement of cash flows, the District’s proprietary funds consider their demand deposits and all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Restricted cash – Restricted assets are financial resources generated for a specific purpose, such as pension benefits. These assets are for the benefit of a specific purpose and, as such, are legally or contractually restricted by an external third-party agreement. The District’s restricted assets consist of a Section 115 trust with California Public Employees’ Retirement System (CalPERS) called California Employers’ Pension Prefunding Trust (CEPPT) that is dedicated to pre-funding employer contributions to the defined benefit pension plan.

E. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in fund financial statements. The cost of prepaid items is recorded as expenses when consumed rather than when purchased.

F. Capital Assets
The cost of additions to utility plant and major replacements of property is capitalized. Costs include material, direct labor, transportation and indirect items such as interest, engineering, supervision and employee fringe benefits. Capital assets are defined by the District as assets with an initial, individual cost of more than $500 and an estimated useful life in excess of one year. Donated capital assets are recorded at estimated acquisition value at the date of donation. Depreciation is computed on a straight‐ line basis over the estimated useful lives of the property as follows:

Sewer Collection Facilities 50 years
Building 30 years
Furniture and Equipment 10 years
Computers 5 years
G. Deferred Outflows and Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense) until then. The District has three items that qualify for reporting in this category. It is the deferred charge on refunding reported in the government‐wide statement of net position, and deferred amounts related to pension and OPEB.
387

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
14 In addition to liabilities, the Statement of Net Position will report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In the fund financial statements the District reports deferred amounts related to pension and OPEB.

H. Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the District Plan and additions to/deductions from the District Plan have been determined on the same basis as they are reported by CalPERS. For this purpose, the District recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.

I. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the Plan fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

J. Compensated Absences
The District records the expense of employees' vacation benefits in the period in which they accumulate and become vested. At June 30, 2024, the balance is $45,951.

K. Net Position
For reporting proprietary funds, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted.  Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position.
 Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation. Amounts reported in restricted net position represent funds held in a Section 115 trust with CalPERS, called CEPPT, that are restricted for future contributions to the pension plan; amounts related to the net pension liability. 388

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
15  Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories.

Sometimes the District will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government‐wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

L. Revenues and Expenses

1. Sewer Service Charges–Sewer service charges are billed and collected, on behalf of the District, by San Mateo County (the County) as a separate component of semi‐annual property tax billings. The County assesses properties, bills for and collects property taxes on the following schedule:

Secured Unsecured
Lien/valuation date January 1 January 1
Levy dates July 1 July 1
Due dates 50% on November 1 July 1
Delinquent as of
50% on February 1
December 10 August 31
April 10
The term "Unsecured" refers to taxes on property not secured by liens on real property.

Property taxes levied are recorded as revenue and receivables, net of estimated uncollectible amounts, in the fiscal year of levy. The County of San Mateo is responsible for assessing, collecting, and apportioning property taxes for the District. Under California law, property taxes are assessed and collected by the County up to 1% of the full cash value of taxable property, plus other increases approved by the voters and distributed per statutory formulas.

Secured property taxes are levied on or before the first day of September of each year. They become a lien on real property on March 1 preceding the fiscal year for which taxes are levied. These taxes are paid in two equal installments; the first is due November 1 and delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Secured property taxes, which are delinquent and unpaid as of June 30, are declared to be tax defaulted and are subject to redemption penalties, cost, and interest when paid. If the delinquent taxes are not paid at the end of five years, the property is sold at public auction, and the proceeds are used to pay the delinquent amounts due. Any excess is remitted, if claimed, to the taxpayer. Additional tax liens are created when there is a change in ownership of property or upon completion of new construction.

Tax bills for these new tax liens are issued throughout the fiscal year and contain various payments and delinquent dates but are generally due within one year. If the new tax liens are lower, the taxpayer receives a tax refund rather than a tax bill. Unsecured personal property taxes are not a lien against real property. These taxes are due on March 1, and become delinquent, if unpaid on August 31.

The District participates in an alternative method of distribution of property tax levies and assessments known as the "Teeter Plan." The State Revenue and Taxation Code allows 389

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
16 counties to distribute secured real property, assessment, and supplemental property taxes on an accrual basis resulting in full payment to taxing agencies each fiscal year. Any subsequent delinquent payments and penalties and interest during a fiscal year will revert to the County. The Teeter Plan payment, which includes 95% of the outstanding accumulated delinquency, is included in property tax revenue retained by the County under the revenue neutrality agreement. Under the Teeter Plan Code, 5% of the delinquency must remain with the County as a reserve for Teeter plan funding. The Teeter Plan does not allow the District to earn interest in a meaningful way on its reserves and the District has an objective to develop reserves to allow it to earn interest and go off the teeter plan.

2. Sewer Connection Fees–Connection fees represent a one‐time contribution of resources to the District imposed on contractors and developers for the purpose of financing growth‐related construction and improvements. Connection fees are recognized as ‘Connection fees’ revenues in the Statement of Revenues, Expenses and Changes in Net Position.

3. Use of Estimates–The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

M. Special Items
Special items are significant transactions or other events unusual or infrequent and are within the control of management.

Note 2 – Cash and Investments
Cash Deposits with Financial Institutions
Custodial credit risk – deposits. In the case of deposits, this is the risk that, in the event of a bank’s failure, the East Palo Alto Sanitary District’s deposits may not be returned to it. The District does not have a deposit policy for custodial credit risk. As of June 30, 2024, the District’s cash deposit balance was $23,356,716 and $0 of that amount was exposed to custodial credit risk. The carrying amount of the deposits as of June 30, 2024 was $23,356,716.

Policies and Classification
The District's cash and investments consist of the following at June 30, 2024:

Enterprise Funds Statement of Net Position
Cash and investments with San Mateo County Treasurer 23,356,716 $ Restricted cash and investments held by pension trust - CEPPT 2,162,237 Total cash and investments 25,518,953 $ The District has authorized staff to invest cash with the San Mateo County Treasurer in a series of pooled accounts with cash from various other governmental entities within the County, for investment purposes.

State statutes govern the County’s investment policies.

In addition, the County has an investment committee, which prescribes written investment policies regarding the types of investments that may be made. The policies limit amounts that may be invested in any one financial institution or amounts which may be invested in long‐term instruments. Interest earned from such time deposits and investments is allocated quarterly to the District based on its average daily cash balances. The fair value of the account at June 30, 2024 was provided by the County Treasurer. 390

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
17 The District is a voluntary participant in the San Mateo County Investment Fund (SMCIF) that is regulated by California Government Code Section 53600 under the oversight of the treasurer of the County of San Mateo. The District reports its investment in SMCIF at the fair value amount provided by SMCIF. The balance available for withdrawal is based on the accounting records maintained by SMCIF, which are recorded on an amortized cost basis. The pool is not registered with the SEC and is unrated.

Restricted Investments – Pension Trust – The District established a Section 115 trust account with CalPERS entitled CEPPT to hold assets that are legally restricted for use in administering the District’s pension plan.

Trust account holders can select from two strategy options for investments. The District elected to select 50% of restricted funds to Strategy 1 portfolio and 50% of restricted funds to Strategy 2 portfolio of restricted funds. The CEPPT Strategy 1 and 2 portfolios are invested in various asset classes that are passively managed to an index. CalPERS periodically adjusts the composition of the portfolio in order to match the target allocations. Generally, equities are intended to help build the value of the portfolio over the long term while bonds are intended to help provide income and stability of principal. Also, strategies invested in a higher percentage of equities seek higher investment returns (but assumes more risk) compared with strategies invested in a higher percentage of bonds. Compared to CEPPT Strategy 2, this portfolio has a higher allocation to equities than bonds. The CEPPT Strategy 1 portfolio and CEPPT Strategy 2 portfolio consist of the following asset classes and corresponding benchmarks:

CEPPT CEPPT
Strategy 1 Strategy 1
Target Target
Allocation Range Benchmark
Global equity 37.00% +/-5% MSCI All Country World Index IMI (Net) Fixed income 44.00% +/-5% Bloomberg U.S. Aggregate Bond Index Global real estate (REITs) 14.00% +/-5% FTSE EPRA/NAREIT Developed Liquid Index (Net) Treasury inflation protected securities (TIPS) 5.00% +/-3% Bloomberg U.S. TIPS Index, Series L Cash 0.00% +/-2% 91-Day Treasury Bill
Total 100.00% 0.00%
Asset Class

CEPPT CEPPT
Strategy 2 Strategy 2
Target Target
Allocation Range Benchmark
Global equity 21.00% +/-5% MSCI All Country World Index IMI (Net) Fixed income 61.00% +/-5% Bloomberg U.S. Aggregate Bond Index Global real estate (REITs) 9.00% +/-5% FTSE EPRA/NAREIT Developed Liquid Index (Net) Treasury inflation protected securities (TIPS) 9.00% +/-3% Bloomberg U.S. TIPS Index, Series L Cash 0.00% +/-2% 91-Day Treasury Bill
Total 100.00% 0.00%
Asset Class
Interest Rate Risk – Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. The District manages its exposure to interest rate risk by investing in the SMCIF. The sensitivity of the fair values of the District’s investments to market interest rate fluctuation is measured as the weighted average maturity of the investment portfolio, which was 1.49 years on June 30, 2024.

June 30, Less than
District Investments: 2024 1 Year
Investments measured at amortized cost
Investment in San Mateo County Investment Pool 23,356,716 $ 23,356,716 $ Investment in CEPPT - Mutual Funds 2,162,237 2,162,237 Total investments 25,518,953 $ 25,518,953 $ 391

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
18 Fair Value Measurements – The District categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy has three levels and is based on the valuation inputs used to measure an asset’s fair value. Deposits and withdrawals in the SMCIF and CEPPT – mutual funds are made in the basis of $1 and not fair value. Accordingly, the District’s proportionate share of investments in those funds at June 30, 2024, is an uncategorized input not defined as Level 1, Level 2 or Level 3 input.

Note 3–Capital Assets
Capital assets activity for the year ended June 30, 2024, was as follows:

Balance at Balance at
June 30, 2023 Additions Retirements June 30, 2024
Capital assets not being depreciated:

Land 184,601 $ - $ - $ 184,601 $
Construction in progress 2,208,644 4,468,105 - 6,676,749 Total capital assets not being depreciated 2,393,245 4,468,105 - 6,861,350 Capital assets being depreciated:

Sewer collection facilities 8,216,243 - - 8,216,243 Cured in place pipe 1,474,518 - - 1,474,518 Buildings 2,587,577 - - 2,587,577
Furniture and equipment 2,175,995 - - 2,175,995
Total capital assets being depreciated 14,454,333 - - 14,454,333 Less accumulated depreciation for Sewer collection facilities (3,874,951) (164,325) - (4,039,276) Cured in place pipe (539,919) (49,151) - (589,070) Building (2,373,979) (105,830) - (2,479,809) Furniture and equipment (2,000,435) (45,895) - (2,046,330) Total accumulated depreciation (8,789,284) (365,201) - (9,154,485) Total capital assets, net 8,058,294 $ 4,102,904 $ - $ 12,161,198 $ Depreciation expense was charged to the function of the proprietary funds of the District as follows:

Sanitation 365,201 $
Total depreciation expense 365,201 $
Note 4 – Compensated Absences
Balance Balance Amount
Beginning End Due Within
of Year 1 Additions Deletions of Year One Year
Compensated absences 37,168 $ 8,783 $ - $ 45,951 $ 45,951 $ 1 In the prior period, compensated absences were classified in accrued liabilities. The ending balance of $45,951 was disbursed during the fiscal year ended June 30, 2025.

392

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
19 Note 5 – Long Term Debt
Changes in long-term liabilities
Changes in the District’s long-term liabilities for the year ended June 30, 2024, are as follows:

Original Balance Balance Amount
Issue Beginning End Due Within
Business-Type Liabilities Amount of Year Additions Deletions of Year One Year Palo Alto 1990 Utility Revenue Bonds

5.75%, due 6/30/2024 469,595 $ 31,796 $ - $ (31,796) $ - $ - $ Palo Alto 2000 Utility Revenue Bonds

5.75%, due 6/30/2024 573,000 38,582 - (38,582) - - Net OPEB liability (asset) 38,517 - (181,351) (142,834) Net pension liability 827,039 - (37,474) 789,565 - $ - 935,934 $ (289,203) $ 646,731 $ - $ Note 6 – Defined Benefit Pension Plan
A. Plan Descriptions
The District contributes to the California Public Employees' Retirement System (CalPERS), a cost sharing multiple‐employer public employee retirement system. CalPERS provides retirement and disability benefits, annual cost‐of living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and District resolution. Calipers issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained from CalPERS, 400 Q Street, Sacramento, CA 95811.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full‐time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non‐duty disability benefits after 10 years of service.

The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

The Plan's provisions and benefits in effect at June 30, 2024, are summarized as follows:

Prior to On or After
January 1, 2013 January 1, 2013
Formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50 52
Monthly benefits, as a percent of annual salary 1.426% to 2.418% 1.0% to 2.5% Required employee contribution rates 8.00% 6.75%
Required employer contribution rates 15.95% 7.68%
Contributions — Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan is determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded 393

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
20 accrued liability. The District is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2024, the contributions to the Plan were $72,684.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2024, the District reported net pension liability for its proportionate share of collective net pension liability in the amount of $789,565.

The District's net pension liability for the Plan is measured as the proportionate share of the collective plans net pension liability. The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The District's proportion of the net pension liability was based on a projection of the District's long‐term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The District's proportionate share of the net pension liability for the Plan as of the June 30, 2023 and 2024 reporting dates was as follows:

Proportion - June 30, 2023 0.01767%
Proportion - June 30, 2024 0.01579%
Change -0.00188%
For the year ended June 30, 2024, the District recognized pension credit of $1,448,842. At June 30, 2024, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of Assumptions 47,670 - $
Differences between Expected and Actual Experience 40,335 (6,257) Differences between Projected and Actual Investment Earnings 127,838 - Differences between Employer's Contributions and Proportionate Share of Contributions 912,603 (146,622) Change in Employer's Proportion - (986,554) Pension Contributions Made Subsequent to Measurement Date 72,684 - Total 1,201,130 $ (1,139,433) $
The $72,684 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred
Year Ended Outflows/(Inflows)
June 30 of Resources
2025 (280,926) $
2026 (75,975) 2027 342,245 2028 3,669 2029 - Thereafter - $ (10,987)
394

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
21 Actuarial Assumptions
The total pension liabilities in the June 30, 2022 actuarial valuation was determined using the following actuarial assumptions for both plans:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method
Discount Rate 6.90%
Inflation 2.30%
Salary increases Varies by Entry Age and Service
Mortality rate table (1) Derived using CalPERS' Membership Data for all Funds Post-retirement benefit increase Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies
1 The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.

Discount Rate — The discount rate used to measure the total pension liability was 6.90 percent for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the plans, CaIPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets.

Therefore, the current 6.90 percent discount rate is adequate, and the use of the municipal bond rate calculation is not necessary.

The long term expected discount rate of 6.90 percent will be applied to all plans in the Public Employees' Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

The long‐term expected rate of return on pension plan investments was determined using a building‐block method in which best‐estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long‐term expected rate of return, CalPERS took into account both short‐term and long‐ term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short‐term (first 10 years) and the long‐term (11‐60 years) using a building‐block approach. Using the expected nominal returns for both short‐term and long‐term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short‐term and long‐term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long‐term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

These rates of return are net of administrative expenses. 395

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
22 Assumed Assets Real Return
Asset Class Allocation Years 1 - 10 (1,24)
Global equity - cap-weighted 30% 4.54%
Global equity non-cap-weighted 12% 3.84%
Private equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed securities 5% 0.50%
Investment grade corporates 10% 1.56%
High yield 5% 2.27%
Emerging market debt 5% 2.48%
Private debt 5% 3.57%
Real assets 5% 3.21%
Leverage -5% -0.59%
1 An expected inflation 2.30 used for this period.
2 Figures are based on the 2021-22 Asset Liability M anagement study.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate — The following presents the District’s proportionate share of the net pension liability for the Plans, calculated using the discount rate for the Plans, as well as what the District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:

Current
1% Decrease Discount Rate 1% Increase
(5.90%) (6.90%) (7.90%)
Net Pension Liability 1,728,118 $ 789,565 $ 17,055 $
Pension Plan Fiduciary Net Position — Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

Note 7 – Postemployment Benefits Other Than Pensions (OPEB) General Information about the OPEB Plan
Plan description and benefits provided
The District provides post‐retirement benefits to eligible employees in the form of reimbursement for post‐ retirement health insurance premiums. Retired employees have a choice of remaining on the District's group health insurance plan or purchasing a plan of their choice. Reimbursement is made quarterly upon receipt of proof of payment. The District's contribution is capped at the amount of the Kaiser premium. The obligation of the District to provide these benefits is determined annually by the Board of Directors. In order to qualify for postemployment medical benefits, an employee must retire from the District with at least 5 years of service and be over 50 years of age.

The District is a contracting agency under the Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by CalPERS for the provision of healthcare insurance programs for both active and retired employees. The District participates in the California Employers’ Retiree Benefit Trust Fund Program (CERBT), an agent‐multiple employer postemployment health plan, to prefund other postemployment benefits through CalPERS. The financial statements for CERBT may be obtained by writing the California Public Employees’ Retirement System, Constituent Relations Office, CERBT (OPEB), P.O. Box 242709, Sacramento, California 94229‐2709 or by calling 888‐225‐7377.

396

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
23 Employees covered by benefit terms
As of the June 30, 2023 actuarial valuation date, the following current and former employees were covered by the benefit terms under the healthcare plan:

Inactive employees or beneficiaries currently receiving benefits payments 7 Active employees 4
11 Contributions
The OPEB Plan and its contribution requirements are established by the District. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2024, the District’s contribution was $78,371, of which $9,459 was in the form of a subsidy.

Net OPEB Liability and Assumptions
The District's net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions:

Inflation 2.50 percent
Salary increases 3.00 percent, average, including inflation Investment rate of return 6.15 percent, net of OPEB plan investment expense Inflation Health care cost trend rates 6.50 percent, grade down to 6% for years 2024 and thereafter.

Demographic actuarial assumptions used in this valuation are based on the 2021 experience study of the California Public Employees Retirement System using data from 1997 to 2019, except for a different basis used to project future mortality improvements.

The long‐term expected rate of return on OPEB plan investments was determined using a building‐block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long‐term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Target Target
Allocation Range Benchmark
Global Equity 49.00% ± 5% MSCI All Country World Index IMI (Net) Fixed Income 23.00% ± 5% Bloomberg Long Liability Index Treasury Inflation-Protected Securities ("TIPS") 5.00% ± 3% Bloomberg US TIPS Index, Series L Real Estate Investment Trusts ("REITs") 20.00% ± 5% FTSE EPRA/NAREIT Developed Index (Net) Commodities 3.00% ± 5% S&P GSCI Total Return Index
Cash 2% ICE BofA US 3-Month Treasury Bill Index
The discount rate used to measure the total OPEB liability was 6.15 percent. The projection of cash flows used to determine the discount rate assumed that contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long‐term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Changes in the Net OPEB Liability
The changes in the net OPEB liability are as follows:
397

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
24 Total OPEB
Liability
Plan
Fiduciary
Net Position
Net OPEB
Liability (Asset)
Balance at June 30, 2023 1,377,676 $ 1,339,159 $ 38,517 $ Changes recognized for year:

Service cost 39,876 - 39,876 Interest 84,170 - 84,170
Benefit Payments (75,430) (75,430) - Employer contributions - 75,430 (75,430) Net investment income 81,677 (81,677) Change due to plan experience (139,990) 4,315 (144,305) Change due to assumptions (4,374) (4,374) Administrative expenses (389) 389 Net changes (95,748) 85,603 (181,351) Balance at June 30, 2024 1,281,928 $ 1,424,762 $ (142,834) $ Increase (Decrease)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
1% Decrease Current 1% Decrease
Discount Rate 5.15% 6.15% 7.15%
Net OPEB Asset 22,823 $ (142,834) $ (277,782) $
The following presents the net OPEB liability if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate:
1% Decrease Current 1% Decrease
Healthcare Cost Trend Rate 5.50% 6.50% 7.50%
Net OPEB Asset (242,524) $ (142,834) $ (19,478) $
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in the future as OPEB expense. The recognition period differs depending on the source of the gain or loss:

Net difference between projected and actual earnings on OPEB plan investments
5 Years straight-line recognition
All other amounts Straight‐line recognition over the expected average remaining service lifetime (EARSL) of all members
that are provided with benefits, determined as of the
beginning of the Measurement Period. In determining
the EARSL, all active, retired and inactive (vested)
members are counted, with the latter two groups
having 0 remaining service years.

For the fiscal year ended June 30, 2024, the District recognized OPEB expense of $72,128. As of 398

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
25 fiscal year end June 30, 2024, the District reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of assumptions 52,259 $ (28,791) $
Differences between expected and actual experience 40,437 (115,081) Net difference between projected and actual earnings on investments 90,246 - Deferred contributions 78,371 - Total 261,313 $ (143,872) $

The $78,371 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability during the fiscal year ending June 30, 2025. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized as expense as follows:

Ending June 30 (Inflows) of Resources
2025 27,566 $
2026 11,639 2027 42,344
2028 (26,550) 2029 (15,929)
Thereafter - Total 39,070 $
Note 8 – Risk Management
The East Palo Alto Sanitary District is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. Insurance policies are purchased for the following exposures with the deductible, or the amount of risk retention indicated in parenthesis: public officials and employment practices liability. Total risk financing limits of $10 million combined single limit at $10 million per occurrence, subject to the following deductibles: $50,000 per occurrence for third party general liability property damage; $25,000 per occurrence for third party auto liability property damage; 50% co-insurance of costs expended by SDRMA, in excess of $10,000 up to $50,000, per occurrence, for employment related claims. Employee dishonesty coverage: total of $1 million per loss includes public employee dishonesty, forgery or alteration and theft, disappearance, and destruction.

Property loss: Replacement cost, for property on file, if replaced, and if not replaced within two years after the loss, paid on an actual cash value basis to a combined total of $1 billion per occurrence, subject to a $50,000 deductible per occurrence. Boiler and machinery: Replacement cost up to $100 million per occurrence, subject to a $50,000 deductible. Public officials’ personal liability: $500,000 each occurrence, with an aggregate of $500,000 per each elected/appointed official to which this coverage applies, deductible of $50,000 per claim. Comprehensive and collision: on selected vehicles, with deductibles of $250/$500 or $500/$1,000 as elected; ACV limits; fully self-funded by SDRMA. Settled claims for SDRMA were exceeded in the current year in the amount of $500,000. The annual member contribution is $187,952 for the property/liability program.

Note 9 – Related Party Transactions
The District reported an outstanding notes receivable of $6,259 from one board member. The original note receivable reported a balance of $10,000. The note receivable was to repair a sewer lateral at the board member’s residence. The note receivable will be paid over a period of 10 years with an annual interest rate of 2.2%.
399

EAST PALO ALTO SANITARY DISTRICT
Notes to the Financial Statements
June 30, 2024
26 Note 10 – Special Items
During the year ended June 30, 2024, a disbursement check was manipulated and disbursed to a vendor not affiliated with the East Palo Alto Sanitary District. The District received a cash receipt of $158,787 July 2024 to reimburse the fraudulent cash disbursement from the receiving bank and will be collecting the remaining funds from the general liability insurance carrier. This amount of $519,680 was reported as Other Receivable in the statement of net position and as Reimbursements in the statement of revenues, expenses, and changes in net position.

Note 11 – Subsequent Events
As of October 1, 2024, the East Palo Alto Sanitary District is a component unit of the City of East Palo Alto. This action was approved by the San Mateo Local Agency Formation Commission (LAFCo). LAFCo is State-mandated, independent agency with countywide jurisdiction over changes in organization and boundaries of cities and special district including annexations, detachments, incorporations and formations.

LAFCo’s approval of the component unit of the City of East Palo Alto (subsidiary district) recognized the need for improved transparency in the District governance and sustainable and efficient operation of East Palo Alto Sanitary District.

As a blended component unit of the City of East Palo Alto, the District will continue to operate with the City Council as the Board of Directors and the City Manager as General Manager.

Note 12 – Commitments and Contingencies
Litigation–At June 30, 2024, in the opinion of the District’s management, there are no outstanding matters, which could have a significant effect on the financial position of the District. 400

REQUIRED SUPPLEMENTARY INFORMATION
401

EAST PALO ALTO SANITARY DISTRICT
Required Supplementary Information
Schedule of Changes in the District's Net OPEB Liability and Related Ratios June 30, 2024
Measurement period ‐ fiscal year ended June 30 2023 2022 2021 2020 2019 2018 2017 Total OPEB Liability
Service cost 39,876 $ 34,524 $ 33,345 $ 32,374 $ 29,357 $ 28,433 $ 65,151 $ Interest 84,170 83,575 78,160 76,380 86,688 83,812 75,555 Difference between expected and actual experience (139,990) - 134,472 - (158,786) - 56,218 Changes of assumptions (4,374) 97,899 (83,791) - 11,722 - 58,445 Benefit payments (75,430) (83,907) (82,353) (84,375) (73,289) (70,888) (47,473) Net change in total OPEB liability 132,091 (95,748) 79,833 24,379 (104,308) 41,357 207,896 Total OPEB liability ‐ beginning 1,377,676 1,245,585 1,165,752 1,141,373 1,245,681 1,204,324 996,428 Total OPEB liability ‐ ending (a) $ 1,281,928 $ 1,377,676 $ 1,245,585 $ 1,165,752 $ 1,141,373 $ 1,245,681 $ 1,204,324 Plan Fiduciary Net Position
Contributions ‐ employer 75,430 $ 83,907 $ 82,353 $ 84,375 $ 118,018 $ 167,884 $ 123,991 $ Net investment income (207,000) 81,677 333,568 41,428 66,813 61,815 84,512 Benefit payments (75,430) (83,907) (82,353) (84,375) (73,289) (70,888) (47,473) Administrative expenses (389) (392) (459) (573) (228) (522) (421) Other expenses - - - - (1,196) -
Change due to investment experience 4,315
Net change in plan fiduciary net position (207,392) 85,603 333,109 40,855 111,314 157,093 160,609 Plan fiduciary net position ‐ beginning 1,339,159 1,546,551 1,213,442 1,172,587 1,061,273 904,180 743,571 Plan fiduciary net position ‐ ending (b) 1,424,762 1,339,159 1,546,551 1,213,442 1,172,587 1,061,273 904,180 District's Net OPEB liability (asset) ‐ ending (a)‐(b) $ (142,834) $ 38,517 $ (300,966) $ (47,690) $ (31,214) $ 184,408 $ (300,144) Plan fiduciary net position as a percentage of the
total OPEB liability (asset) 111% 97% 124% 104% 103% 85% 75% Covered‐employee payroll 527,950 423,561 450,416 315,700 276,918 325,500 534,400 Net OPEB liability (asset) as a percentage of
covered‐employee payroll -27.05% 9.09% -66.8% -15.1% -11.3% 56.7% -56.2% See note to required supplementary information.

Note: Until the full ten year trend is compiled, information is presented only for those years which information is available. 28 402

EAST PALO ALTO SANITARY DISTRICT
Required Supplementary Information
Schedule of the District's Contributions for OPEB
June 30, 2024
Measurement year ended June 30, 2023 2022 2021 2020 2019 2018 2017 Actuarially determined contribution 6,714 $ 11,163 $ 34,870 $ 33,760 $ 45,599 $ 44,729 $ 84,368 $ Contribution in relation to the actuarially determined contribution 78,371 75,430 83,907 82,353 84,375 118,018 171,601 Contribution deficiency (excess) (71,657) $ (64,267) $ (49,037) $ (48,593) $ (38,776) $ (73,289) $ (87,233) $ Covered-employee payroll 527,950 $ 423,561 $ 450,416 $ 315,700 $ 276,918 $ 325,400 $ 534,400 $ Contributions as a percentage of covered-employee payroll 14.84% 17.81% 18.63% 26.09% 30.47% 36.27% 32.11% See notes to required supplementary information.

Note: Until the full ten year trend is compiled, information is presented only for those years which information is available. 29 403

EAST PALO ALTO SANITARY DISTRICT
Required Supplementary Information
Schedule of the District's Proportionate Share of the Net Pension Liability June 30, 2024
Measurement period - fiscal year ended June 30, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Proportion of the net pension liability 0.0003058 0.03133% 0.03199% 0.04407% 0.04401% 0.04366% 0.04252% 0.04232% 0.04303% 0.03807% Proportion share of the net pension liability 789565 827,039 $ 1,230,697 $ 1,858,898 $ 1,762,354 $ 1,645,444 $ 1,676,026 $ 1,470,158 $ 1,180,505 $ 940,823 $ Covered payroll 603,962 $ 471,085 $ 423,561 $ 435,859 $ 262,098 $ 185,975 $ 367,923 $ 701,673 $ 678,974 $ 577,858 $ Proportionate share of the net pension
Covered-employee payroll
liability as a percentage of covered payroll 130.73% 175.56% 290.56% 426.49% 672.40% 884.77% 455.54% 209.52% 173.87% 162.81% Plan's proportionate share of the fiduciary
net position as a percentage of the plan's
total pension liability 89% 88% 68% 70% 71% 75% 71% 74% 78% 80% See notes to required supplementary information.
30 404

EAST PALO ALTO SANITARY DISTRICT
Required Supplementary Information
Schedule of the District's Contributions for Pensions
June 30, 2024
Measurement year ended 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Actuarially determined contribution 72,684 $ 122,760 $ 84,229 $ 54,342 $ 38,195 $ 33,957 $ 27,317 $ 42,955 $ 76,889 $ 126,764 $ Contribution in relation to the actuarially determined
contributions (72,684) $ (122,760) (1,494,202) (54,342) (38,195) (33,957) (27,317) (42,955) (76,889) (126,764) Contribution deficiency (excess) - $ - $ (1,409,973) $ - $ - $ - $ - $ - $ - $ - $ Covered-employee payroll 603,962 $ 471,085 $ 423,561 $ 435,859 $ 359,533 $ 262,098 $ 185,975 $ 367,923 $ 701,673 $ 678,974 $ Contributions as a percentage of covered payroll 12.03% 26.06% 352.77% 12.47% 10.62% 12.96% 14.69% 11.67% 10.96% 18.67% See notes to required supplementary information
31 405

EAST PALO ALTO SANITARY DISTRICT
Notes to Required Supplementary Information
June 30, 2024
32 Schedule of Changes in the Net OPEB Liability and Related Ratios The District’s OPEB liability is administered as an agent multiple employer plan, which is administered by CalPERS. The schedule of changes in Net OPEB liability and the schedule of contributions show a ten‐year trend information, where available, about these amounts and they are changing from year to another.

Schedule of OPEB Contributions
The District makes contributions towards the OPEB liability at an actuarially determined rate. The District does not request reimbursement for its’ out-of-pocket expenditures for this subsidy from the OPEB trust and allows the subsidy amount to remain in the CERBT to prefund OPEB and offset the total OPEB liability.

Schedule of District’s Proportionate Share of the Net Pension Liability (NPL) This schedule presents information on the District’s proportionate share of the net pension liability (NPL), the plans’ fiduciary net position and, when applicable, the State’s proportionate share of the NPL associated with the District.

Schedule of District’s Pension Contributions
This schedule presents information on the District’s required contribution, the amounts actually contributed, and any excess or deficiency related to the required contribution. 406
671 S Milpitas Blvd, Suite 217, Milpitas, California 95035 (408) 780-2236
www.dfarnsworthcpa.com
Communication with Those Charged with Governance at the Conclusion of the Audit February 27, 2025
To the Board of Directors
East Palo Alto Sanitary District
East Palo Alto, California
We have audited the financial statements of the business-type activities and each major fund of East Palo Alto Sanitary District for the year ended June 30, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 30, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by East Palo Alto Sanitary District are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2024. We noted no transactions entered into by East Palo Alto Sanitary District during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the business-type activities’ financial statements were:

1. Management’s estimate of the accumulated depreciation is based on straight-line method of accounting. We evaluated the methods, assumptions, and data used to develop the accumulated depreciation in determining that it is reasonable in relation to the financial statements taken as a whole.

2. Management’s estimate of the net pension liability, related deferred outflows/inflows, and pension expense is based on generally accepted actuarial principles consistent with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for the risk pool as of the valuation date June 30, 2022. We evaluated the methods, assumptions, and data used to develop the accumulated depreciation in determining that it is reasonable in relation to the financial statements taken as a whole.

3. Management’s estimate of the net OPEB asset, related deferred outflows/inflows, and OPEB expense is based on the actuarial assumptions and methods used in this report to be individually reasonable under the requirements imposed by GASB 75 and taking into consideration reasonable expectations of plan experience. We evaluated the methods, assumptions, and data used to develop the accumulated depreciation in determining that it is reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users.

The most sensitive disclosures affecting the financial statements were:

1. The disclosure of Special Items in Note 10 to the financial statements reports the special items reported as of and for the year ended June 30, 2024
407
2 ALG (2/24)

2. The disclosure of Subsequent Events reports that the District became a blended component unit of the City of East Palo Alto as of October 1, 2024.

3. The disclosure of the related party transaction reports the related party transactions between a board member and the District
The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated February 27, 2025.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to East Palo Alto Sanitary District’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as East Palo Alto Sanitary District’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

We discovered material weaknesses as a result of the audit procedures and communicated these matters in a separate letter.

Other Matters
We applied certain limited procedures to Schedule of Changes in the District’s Net OPEB liability and related ratios, schedule of the District’s Contributions for OPEB, and Schedule of the District’s Proportionate Share of the Net Pension Liability, Schedule of the District’s Pension Contributions, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

Restriction on Use
This information is intended solely for the information and use of Board of Directors and management of East Palo Alto Sanitary District and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
__________________________
David Farnsworth, CPA
408
671 S Milpitas Blvd, Suite 217, Milpitas, California 95035 (408) 780-2236
www.dfarnsworthcpa.com
1 Communication of Material Weaknesses
Board of Directors and Management
East Palo Alto Sanitary District
East Palo Alto, California
In planning and performing our audit of the financial statements of the business-type activities and each major fund of East Palo Alto Sanitary District as of and for the year ended June 30, 2024, in accordance with auditing standards generally accepted in the United States of America, we considered East Palo Alto Sanitary District’s system of internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of East Palo Alto Sanitary District’s internal control. Accordingly, we do not express an opinion on the effectiveness of East Palo Alto Sanitary District’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the following deficiencies in internal control to be material weaknesses:

1. As a result of audit procedures, we discovered that assets, liabilities, revenues and expenses material to the financial statements were misstated. To correct the misstatement, we recommended multiple adjusting journal entries to management.

2. During the year ended June 30, 2024, District Management discovered that a disbursement check was manipulated and disbursed to a vendor not affiliated with the East Palo Alto Sanitary District. District Management failed to communicate the misappropriation of assets until three months after the misappropriation of assets occurred.

3. As a result of the audit procedures, we discovered that the District failed to follow the procurement policy of the District.

4. As a result of the audit procedures, we discovered a board member had used funds of the District to travel and attend conferences outside the scope of the District’s activities.

This communication is intended solely for the information and use of management Board of Directors, and others within East Palo Alto Sanitary District, and is not intended to be, and should not be, used by anyone other than these specified parties. ______________________
David Farnsworth, CPA
Milpitas, California
February 27, 2025
409
EPASD POLICY AND ACTION ITEM 13.2

EAST PALO ALTO

SANITARY DISTRICT

STAFF REPORT
DATE: March 18, 2025
TO: EPASD Board of Directors
VIA: Melvin E. Gaines, General Manager
BY: Richard Perez, City Utility Manager
Humza Javed, District Engineer
SUBJECT: Accept the Notice of Completion and authorize the release of retention payment to Ranger Pipelines for the Sanitary Sewer Replacement Project at Beech Street, Clarke Avenue, and Green Street.

Recommendation
Adopt a resolution:

1. Accepting the notice of completion to Ranger Pipelines for the Sanitary Sewer Replacement Project at Beech Street, Clarke Avenue, and Green Street; and

2. Authorizing the release of a retention balance in the amount of $238,016.90; and

3. Authorizing recordation of the Notice of Completion with the County of San Mateo; and

4. Finding that the proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority: Promote Health & Public Safety
410
EPASD POLICY AND ACTION ITEM 13.2
Background
On September 7, 2023, the District’s Board members awarded Ranger Pipelines a contract to perform critical infrastructure improvements on Beech Street, Clarke Avenue, and Green Street.

These infrastructure improvements included the installation and upsizing of sewer mains within the project limits. The total project budget for this work was $5,035,800.90. Ranger Pipelines started the project on November 13, 2023, and it was completed and accepted by staff in January 2025, as the City awaited completion of a punch list by the contractor.

There were scope changes over the course of the project due to site conditions which reduced the overall project cost to $4,760,338.06.

Analysis
The East Palo Alto Sanitary District is currently holding a contract retention balance in the amount of $238,016.90, which is to be released upon acceptance of the improvements by the Board of Directors, and within 35 days after recordation of the Notice of Completion.

The project was inspected throughout construction and has been accepted by staff. In order to closeout the project, a Notice of Completion needs to be recorded with the County of San Mateo.

The retention payment must be released to the contractor for the work that has been completed.

Fiscal Impact
There is no additional fiscal impact by this action, as the retention amount is already included in the project budget.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on the City’s official bulletin board located at City Hall: 2415 University Avenue, East Palo Alto and at the East Palo Alto Sanitary District bulletin board located at 901 Weeks Street, East Palo Alto, CA.

Environmental
The proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment. Further, CEQA compliance was conducted in a previous meeting.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not involve an entitlement.

Analysis of Levine Act Compliance: Not applicable.
411
EPASD POLICY AND ACTION ITEM 13.2
Attachments

1. Resolution

2. Notice of Completion
412
Resolution No. XX-2025 1 of 2
RESOLUTION NO. XX-2025

A RESOLUTION OF THE BOARD OF

DIRECTORS OF THE EAST PALO

ALTO SANITARY DISTRICT

ACCEPT THE NOTICE OF COMPLETION AND AUTHORIZE THE RELEASE OF RETENTION

PAYMENT TO RANER PIPELINES FOR THE SANITARY SEWER PROJECT AT BEECH STREET, CLARKE AVENUE, AND GREEN STREET IN THE AMOUNT OF $238,016.90 AND AUTHORIZING

THE RECORDATION OF THE NOTICE OF COMPLETION WITH THE COUNTY OF SAN MATEO WHEREAS, on September 13, 2023, the East Palo Alto Sanitary District’s Board awarded Ranger Pipelines a contract to perform critical infrastructure improvements on Beech Street, Clarke Avenue, and Green Street (project).

WHEREAS, the project included the installation and upsizing of portions of the sanitary sewer system; and
WHEREAS, the project was completed in January 2025, as the City awaited completion of punch list items by the contractor, in the total amount of $4,760,338.06; and WHEREAS, the East Palo Alto Sanitary District is currently holding a retention balance in the amount of $238,016.90 to be released upon acceptance of the improvements by the East Palo Alto Sanitary District, within 35 days after recordation of the Notice of Completion; and NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the City of East Palo Sanitary District hereby:
1) Accepts the notice of completion to Ranger Pipelines for the Sanitary Sewer Replacement Project at Beech Street, Clarke Avenue, and Green Street; and 2) Authorizes the release of a retention balance in the amount of $238,016.90; and 3) Authorizes the recordation of the Notice of Completion with the County of San Mateo; and 4) Finding that the proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.
413
Resolution No. XX-2025 2 of 2
PASSED AND ADOPTED this 18th day of March 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Mark Dinan, Board President
ATTEST: APPROVED AS TO FORM:

James Colin, Secretary John D. Lê, District Counsel
414

RECORDATION REQUESTED BY AND
AFTER RECORDATION RETURN TO:

East Palo Alto Sanitary District
901 Weeks Street
East Palo Alto, California 94303
Attn: EPASD Clerk
BY: MAIL (X) PICK-UP ( )

PLEASE RECORD WITHOUT FEE PURSUANT
TO GOVERNMENT CODE SECTION 6103

NOTICE OF COMPLETION
Notice is hereby given pursuant to the California Civil Code that the East Palo Alto Sanitary District, (the “District”), accepted as complete, on March 18, 2025, Replacement Project At Beech Street, Clarke Avenue, and Green Street, (the “Project”). The Project consisted of critical public infrastructure upgrades on Beech Street, Clarke Avenue, and Green Street. Construction work commenced in July 2022 and substantially completed on August 16, 2024.

The fee owner of the Property is the East Palo Alto Sanitary District located at 901 Weeks St, East Palo Alto, California, 94303.

The Project was undertaken at the at Beech Street, Clarke Avenue, and Green Street pursuant to a contract between the District and Ranger Pipeline Inc, whose principal place of business is P.O. Box 24109, 1790 Yosemite Avenue, San Francisco, CA 94124, which provided for the labor and materials to be furnished for the Project.

The Work included critical infrastructure upgrades on Beech Street, Clarke Avenue, and Green Street. These infrastructure improvements included the installation and upsizing of current sanitary sewer mains. Said work and improvements were accepted as completed by the East Palo Alto Sanitary District Board of Directors at a regular meeting held on the 18th day of March 2025. The Project was completed for the total construction contract amount of $4,760,338.06 including retention.

I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge.
[SIGNATURES FOLLOW ON NEXT PAGE]
415
Executed this the day of , 2025, at East Palo Alto, California.

APPROVED AS TO FORM: THE EAST PALO ALTO SANITARY DISTRICT By:_________________________ By:________________________ John D. Lê Humza Javed, PE
District Counsel District Engineer

ACKNOWLEDGMENT
State of California )
County of San Mateo )
On _____________________ ____ before me, ____________________________, Notary Public, personally appeared
______________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
416
EPASD POLICY & ACTION ITEM 13.3

EAST PALO ALTO

SANITARY DISTRICT

1. Rescinding District Board Resolution No. 419;

2. Authorizing the District Treasurer of the EPASD (City Finance Director) to sign checks and warrants in the name of the District;

3. Authorizing the General Manager of the EPASD (City Manager) to sign all contracts, releases, receipts, and similar documents in the name of the district, consistent with applicable local law, including the East Palo Alto Municipal Code, including without limitation Section 2-59.1 (Formalities—Approval) of Chapter 2 (Administration) and Chapter 2.84 (Purchasing), as amended from time to time, of the East Palo Alto Municipal Code, in the name of the District, as authorized by California Health & Safety Code 6487; and

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority: Ensure Our Financial and Organizational Health 417
EPASD POLICY & ACTION ITEM 13.3
Background
October 1, 1992, the East Palo Alto Sanitary District (EPASD) adopted Resolution No. 419 to authorize the General Manager to be a signatory on warrants and checks drawn on EPASD funds but that such warrants and checks, to be effective, must also bear the signatures of either two members of the EPASD board, or a single board member and the General Manager.

On December 3, 2024, the East Palo Alto City Council, in its capacity as the governing board of the EPASD, adopted an ordinance amending various portions of the Sanitary District Code, including Section 307, which states that the EPASD will adopt policies and procedures for the purchase of supplies and equipment consistent with state law.

On February 18, 2025, the East Palo Alto City Council adopted an ordinance amending Chapter 2.84 (Purchasing) of the East Palo Alto Municipal Code, substantially revamping its purchasing ordinance, including electing to be subject to the California Uniform Public Construction Cost Accounting Act (UPCCAA). That ordinance became effective 30 days thereafter, i.e., on March 20, 2025.

To ensure the EPASD staff can comply with Chapter 2.84, as recommended in Item No.

13.1 of this agenda, it is recommended that certain changes to local law be made to ensure: 1) the District Treasurer has signature authority for checks and warrants, and 2) the EPASD’s General Manager has authority to sign agreements and similar documents, in lieu of existing local and state law, which requires board member approval. As noted in a separate agenda report before the Council this evening, he General Manager would be subject to the same authorization limits as those provided to the City Manager in Chapter 2.84 (Purchasing) of the East Palo Alto Municipal Code and the UPCCAA.

Analysis
Although District Resolution No. 419 requires board member approval, staff believe this process could prove burdensome for the current Council as they serve in two capacities (City Council and Governing Board Members). Additionally, state law does not mandate board member approval and in fact allow for delegation of such authority.

Pursuant to Health & Safety Code section 6487, all contracts, deeds, warrants, releases, receipts, and documents shall be signed in the name of the district by its president, and countersigned by its secretary, except that the board may, by resolution, authorize the district manager or other district employees specified by the board to sign contracts, warrants, releases, receipts, and similar documents in the name of the district; and Further, the City’s Municipal Code authorizes staff to be signatories, and the City Manager and City Attorney to be involved in the negotiation, execution and review of agreements entered into on behalf of the City. Pursuant to Section 2-59.1 (Formalities—Approval) of Chapter 2 (Administration) and Chapter 2.84 (Purchasing), as amended from time to time, of the East Palo Alto Municipal Code, authorizes either any employee authorized to enter into the contract, including the City Manager, or any person authorized by the Council, thereby raising an inconsistency.
418
EPASD POLICY & ACTION ITEM 13.3
As staff is recommending that the Council, in its capacity of the EPASD Governing Board, require procurement of District supplies, equipment and services to comply with the newlyenacted Chapter 2.84 and to ensure consistency of procurement practice, staff is further recommending that the Council make changes to ensure: 1) the District Treasurer has signature authority for checks and warrants, and 2) the EPASD’s General Manager has authority to sign agreements and similar documents, in lieu of existing local and state law, which requires board member approval.

Fiscal Impact
There is no fiscal impact for this item.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Environmental
The proposed action involves procurement of design services for tenant improvements in an existing commercial space that does not involve an increase in baseline capacity. Accordingly, the proposed action is not a “project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378(b)(2), in that it is government administrative activity that will not result in direct or indirect changes in the environment.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not involve an entitlement.

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. Draft Resolution.
419
EPASD Resolution No. XX-2025 1 of 2
RESOLUTION NO. ___-2025

A RESOLUTION OF THE BOARD OF DIRECTORS OF

THE EAST PALO ALTO SANITARY DISTRICT

DELEGATING AUTHORITY TO THE DISTRICT MANAGER OR OTHER DISTRICT EMPLOYEES

SPECIFIED BY THE BOARD TO SIGN CONTRACTS, WARRANTS, RELEASES, RECEIPTS, AND

SIMILAR DOCUMENTS IN THE NAME OF THE EAST PALO ALTO SANITARY DISTRICT WHEREAS, on October 1, 1992, the East Palo Alto Sanitary District (EPASD) adopted Resolution No. 419 to authorize the General Manager to be a signatory on warrants and checks drawn on EPASD funds but that such warrants and checks, to be effective, must also bear the signatures of either two members of the EPASD board, or a single board member and the General Manager; and WHEREAS, on December 3, 2024, the East Palo Alto City Council, in its capacity as the governing board of the EPASD, adopted an ordinance amending various portions of the Sanitary District Code, including Section 307, which states that the EPASD will adopt policies and procedures for the purchase of supplies and equipment consistent with state law; and WHEREAS, on February 18, 2025, the East Palo Alto City Council adopted an ordinance amending Chapter 2.84 (Purchasing) of the East Palo Alto Municipal Code, substantially revamping its purchasing ordinance, including electing to be subject to the California Uniform Public Construction Cost Accounting Act (UPCCAA). That ordinance became effective 30 days thereafter, i.e., on March 20, 2025; and
WHEREAS, pursuant to Health & Safety Code section 6487, all contracts, deeds, warrants, releases, receipts, and documents shall be signed in the name of the district by its president, and countersigned by its secretary, except that the board may, by resolution, authorize the district manager or other district employees specified by the board to sign contracts, warrants, releases, receipts, and similar documents in the name of the district; and
WHEREAS, pursuant to Section 2-59.1 (Formalities—Approval) of Chapter 2 (Administration) and Chapter 2.84 (Purchasing), as amended from time to time, of the East Palo Alto Municipal Code, authorizes either any employee authorized to enter into the contract, including the City Manager, or any person authorized by the Council, thereby raising an inconsistency.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST PALO ALTO SANITARY DISTRICT HEREBY:

1. Finds the foregoing recitals are true and correct, and are incorporated by this reference into this action;

2. Rescinds District Board Resolution No. 419;

3. Authorizes the District Treasurer of the EPASD (City Finance Director) to sign checks and warrants in the name of the District;

4. Authorizes the General Manager of the EPASD (City Manager) to sign all contracts, releases, receipts, and similar documents in the name of the district, consistent with applicable local law, including the East Palo Alto Municipal Code, including without limitation Section 2-59.1 (Formalities—Approval) of Chapter 2 (Administration) and Chapter 2.84 420
EPASD Resolution No. XX-2025 2 of 2
(Purchasing), as amended from time to time, of the East Palo Alto Municipal Code, as authorized by California Health & Safety Code 6487; and

5. Finds that the proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.

PASSED AND ADOPTED this 18th day of March 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Mark Dinan, President
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney/District Counsel 421
EPASD POLICY & ACTION ITEM 13.4

EAST PALO ALTO

SANITARY DISTRICT

STAFF REPORT
DATE: March 18, 2025
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, General Manager/City Manager
BY: John D. Lê, District Counsel/City Attorney
SUBJECT: Purchasing Ordinance, Policies and Procedures for EPASD Recommendation
Adopt an ordinance amending the Sanitary District Code to require purchases of services, equipment and supplies for the East Palo Alto Sanitary District to comply with Chapter 2.84 of the East Palo Alto Municipal Code, as amended from time to time, and any policies and procedures, as amended from time to time, adopted to implement the same.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority: Ensure Our Financial and Organizational Health Background
On December 3, 2024, the East Palo Alto City Council, in its capacity as the governing board of the East Palo Alto Sanitary District (EPASD), adopted an ordinance amending various portions of the Sanitary District Code, including Section 307, which states that the EPASD will adopt policies and procedures for the purchase of supplies and equipment consistent with state law.

On February 18, 2025, the East Palo Alto City Council adopted an ordinance amending Chapter

2.84 (Purchasing) of the East Palo Alto Municipal Code, substantially revamping its purchasing ordinance, including electing to be subject to the California Uniform Public Construction Cost Accounting Act (UPCCAA). That ordinance became effective 30 days thereafter, i.e., on March 20, 2025.

The proposed ordinance would clarify that the EPASD is now subject to the City’s new 422
EPASD POLICY & ACTION ITEM 13.4
purchasing ordinance.

Analysis
The proposed ordinance is straightforward, as it simply states that all purchases of services, equipment, and supplies by or for the EPASD must comply with Chapter 2.84 and any implementing policies and procedures implementing the same:

Staff recommends adoption of this Sanitary District Code amendment.

Fiscal Impact
There is no fiscal impact for this item.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not involve an entitlement.

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. Draft Ordinance
423
ORDINANCE NO. ____

AN ORDINANCE OF THE BOARD OF DIRECTORS

OF THE EAST PALO ALTO SANITARY DISTRICT (EPASD)

AMENDING THE DISTRICT CODE REGARDING PURCHASING

POLICIES AND PROCEDURES OF THE EAST PALO ALTO SANITARY
DISTRICT; AND OTHER AMENDMENTS
WHEREAS, on November 23, 2023, the San Mateo Local Agency Formation Commission (LAFCo) approved, and on September 16, 2024, LAFCo finalized the action to establish the East Palo Alto Sanitary District (EPASD) as a subsidiary district of the City of East Palo Alto (City); and
WHEREAS, pursuant to the LAFCo’s Certificate of Completion designates the City Council of the City as the Board of Directors of the EPASD; and WHEREAS, accordingly, the action to establish EPASD as a subsidiary district of the City became effective October 1, 2024; and
WHEREAS, the Board of Directors of the EPASD adopted Ordinance No. 59 amending the District Code, including an amendment stating that the EPASD would adopt the policies and procedures for the purchase of supplies and equipment; and WHEREAS, the Board now wishes to amend some portions of the District Code, as follows.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST PALO ALTO SANITARY DISTRICT DOES ORDAIN AS FOLLOWS:

Section 1. The recitals and statements of fact set forth in the preamble to this ordinance are true and correct and are incorporated herein by this reference.

Section 2. Section 307 of the District Code is hereby amended to read as follows: “The District shall comply with Chapter 2.84 of the East Palo Alto Municipal Code as amended from time to time, and any policies and procedures adopted to implement the same, as amended from time to time, governing the purchase of supplies and equipment, which is in accordance with the requirements of Article 7, of Chapter 5, of Part 1, of Division 2, of Title 5 of the Government Code, and all such purchases shall be made in accordance therewith. Said policies and procedures shall be in writing available for inspection and copying by the public.”
Section 3. The City Council finds that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines because it will not result in a direct or 424
reasonably foreseeable indirect physical change in the environment, there is no possibility it will have a significant effect.

Section 4. Any provision of local law of either the District or the City of East Palo Alto inconsistent with this Ordinance inasmuch as it cannot be reasonably interpreted harmoniously, to the extent of such inconsistencies and no further, are hereby repealed or modified to the extent necessary to effectuate this Ordinance.

Section 5. If any section, subsection, phrase or clause of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, phrase and clause thereof irrespective of the fact that any one or more sections, subsections, phrases or clauses be declared invalid or unconstitutional.

Section 6. This Ordinance shall be entered in the minutes of the District Board and shall be published once in a newspaper published in the District and posted in three (3) public places within the District for a period of one week. The Ordinance amending this Code shall take effect upon expiration of the week of publication and posting.

Section 7. The foregoing Ordinance was adopted at a regular meeting of the EPASD Board held on the ___day of _________2025, by the following vote:
[Continued on the following page.]
425
AYES:

NOES:

ABSENT:

ABSTAIN:

Mark Dinan, Board President
ATTEST: APPROVED AS TO FORM:

James Colin, District Clerk John D. Lê, District Counsel 426
PUBLIC HEARING ITEM 16.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: March 18, 2025
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Batool Zaro, Senior Engineer
Humza Javed, Public Works Director
SUBJECT: Residential Permit Parking Program Ordinance (RPP) First Reading Recommendation
By motion:

1. Waive the first reading and introduce an ordinance adding a new Chapter 10.40 (Residential Permit Parking Program) to the East Palo Alto Municipal Code; and

2. Find that the proposed action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), as it is general policy and procedure making not applied to a specific instance and therefore it is not a “project” (California Code of Regulations, Title 14, Division 6, Chapter 3, Article 20, §15378 (b) (2)).

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Implement the Comprehensive Transportation and Mobility Plan Background
The 2020 Mobility Study recommended creating a citywide permit parking program to address parking challenges along public streets in East Palo Alto. This study introduced a draft permit parking program, outlining general information and guidelines.

Implementing a permit parking program offers several benefits:
427
PUBLIC HEARING ITEM 16.1
 Equitably allocating on-street parking among neighborhood residents  Encouraging residents to use off-street parking (garages and driveways)  Motivating residents to consider the impact of excess vehicles Parking issues frequently arise in all neighborhoods of East Palo Alto, and residents often submit complaints to the City to that effect. Recognizing the need for policy solutions, the City Council supported exploring a permit parking program as a potential improvement and, through the previous Strategic Priority process, has directed staff to prioritize its launch.

Staff first presented a draft residential permit parking ordinance to the Public Works and Transportation Commission (PWTC) on December 20, 2023. During the meeting, staff gathered comments from the PWTC and the public, which were then incorporated into an updated draft.

The City’s transportation consultant, Hexagon Transportation Consultants, Inc., presented this revised draft at the PWTC meeting on April 17, 2024, responding to additional questions and comments. Staff and Hexagon presented a further refined draft to the PWTC on May 15, 2024.

After public comment and deliberation, the PWTC recommended the ordinance to the City Council and provided feedback on the program, including:
 Petition Establishment: PWTC and the public recommended reducing the permit parking petition threshold from 67% to 50%+1 of households. Staff recommends maintaining the 67% threshold to ensure substantial support for the program, consistent with other agencies’ thresholds.
 Disabled Parking Areas: The ordinance should clarify that the permit exemption applies only to designated disabled parking spots. Staff agrees with this recommendation.  Program Guidelines: PWTC suggested adding a midnight to 5 AM time period during which permit parking could be enforced under section 5 of the program guidelines. Staff agreed.
 Permit Cost: A commissioner suggested that the first permit should not be free, though staff is recommending that the first permit be free.
 Revenue Transparency: A commissioner recommended transparency in revenue generated from fees and citations when a permit parking zone is established. Staff agrees that revenue generated should be tracked by the Finance Department.

On June 18, 2024, staff presented the updated draft ordinance to the City Council. The Council instructed staff to delay the first reading and further investigate additional concerns outlined below:
 Increased Public Outreach: Staff expanded outreach with citywide mailers in English and in Spanish, an online survey, and social media engagement. Of 198 survey respondents, 57% are in favor of the program, and about 40% said they have only one vehicle parked on street.
 Clarification on the 75% Threshold: One of the main purposes of the RPP is to equitably allocate the limited resource of on-street parking and setting these thresholds for eligibility help ensure this. Section 10.40.050 specifies that at least 75% of on-street spaces in the proposed RPP area must be occupied during proposed permit hours to establish or 428
PUBLIC HEARING ITEM 16.1
expand an RPP area. Most cities set minimum occupancy threshold requirements for residential permit parking program eligibility at 75-80% (San Francisco, Redwood City, Mountain View, Santa Clara, and Oakland). The outliers are San Mateo where the threshold is 60% and San Jose where they require 85% on at least 65% of the blocks.

Some cities do not set numeric thresholds but usually require findings that there is a parking shortage (Palo Alto, Menlo Park, Sunnyvale, and Belmont).  Consideration of Two Parking Permits by Default: The draft ordinance offers one free permit per residence, with additional permits available for purchase based on availability, due to limited on-street parking in neighborhoods.

East Palo Alto neighborhoods do not have enough on-street parking to accommodate two (2) vehicles on the street for every dwelling unit. For example, the Gardens Neighborhood has approximately 1,500 dwelling units and 2,175 on-street spaces which means there’s

1.45 spaces per dwelling unit.
 Impact on Commercial Parking: The draft ordinance exempts commercial vehicles actively providing services from RPP restrictions if they comply with applicable law, including East Palo Alto Municipal Code Section 10.04.080 (Parking commercial vehicles). However, certain vehicles (e.g., oversized vehicles, trailers) are prohibited from parking overnight or for extended periods.

Per the Program Guidelines, commercial trucks, boat trailers, RV’s, trailers, and worktype commercial vehicles, including taxis and limousines, are not eligible for parking permits. Privately owned passenger cars used for ridesharing (e.g., Uber/Lyft) are not considered commercial vehicles when such vehicle are not in actual use for business.

Per the City’s municipal code, commercial vehicles are prohibited from parking on residential streets for more than 1 hour except when in actual use for the transaction of any lawful business (§ 10.04.080). Additionally, oversized vehicles and trailers are prohibited from parking on any public street from 2-5 AM (§10.04.130).  Investigation of Public/Private Partnership: Staff reached out to private property owners (including churches and the Boy and Girls Club) in the Gardens neighborhood to explore shared parking, but they expressed concerns regarding liability, safety, and maintenance.

Following the June City Council meeting, a study session was conducted on November 12th, 2024, for staff to provide updates on the items further investigated and to receive feedback and comments on the draft ordinance.

At the November 12, 2024, meeting, the City Council provided the following feedback:
 Petition Establishment: Staff recommended aligning the thresholds at 67% for both application and approval and City Council agreed with the recommendation.  Outreach: A council member suggested additional outreach methods, including physical surveys. Staff made physical copies of the outreach survey available at City Hall and at 1960 Tate Street offices.
 Investigation of Public/Private Partnership: A council member requested that staff reach out to the Gateway 101 Shopping Center to explore shared parking. Following the meeting, the team reached out to the shopping center; however, they declined to allow 429
PUBLIC HEARING ITEM 16.1
overnight shared parking by residents.
 Enforcement: The City Council echoed concerns raised by the public regarding the enforcement of abandoned vehicles and improper parking and requested the development of an enforcement plan for existing issues and the new program.

Analysis
The Residential Permit Parking program establishes a procedure for implementing a permit parking area (PPA) anywhere in the City. The draft residential permit parking program details the process for designating and establishing a PPA, the issuing of resident and guest permits, enforcement within the PPA, and the PPA removal. The draft residential permit parking program is included in this report as Attachment 1. Once a PPA is established, each residential property will receive one parking permit at no charge, and a second permit may be purchased, subject to availability. Limited one-day guest permits will be offered for evening and night-time visitors. All parking permits issued with fees associated will be determined through a citywide fee schedule update.

It is important to note that a permit does not guarantee or reserve an on-street parking space but allows vehicles to park on any neighborhood street within permit-restricted hours. The ordinance will also cap the number of permits issued to prevent exceeding the neighborhood’s total parking capacity.

The establishment of a residential PPA should only be considered if the criteria detailed in the Residential Permit Parking Program Guidelines (Attachment 2), are satisfied. The twelve-step procedure for establishing a PPA is detailed in the guide. Additionally, the draft permit parking application is included in Attachment 2. Attachment 3 includes some frequently asked questions (FAQ’s).

Residential Permit Parking Program Establishment Process The establishment process for a PPA includes:

1. Staff review of neighborhood application or petition;

2. Data collection;

3. Community outreach;

4. Review and recommendation by the PWTC;

5. Adoption of a resolution establishing, expanding, or eliminating an RPP area; and

6. Resident notification of the new RPP area.

The establishment procedure is further detailed in Attachments 1 and 2. Per the ordinance, the City also has the ability to establish a PPA. The City Council can establish a PPA independently and on its own (without a petition).

The goal of the ordinance is to provide residents and the City with a mechanism to establish permit parking anywhere in the City. The ordinance does not establish details related to permit 430
PUBLIC HEARING ITEM 16.1
parking zones or fees; fees for permit parking zones will be established later following ordinance adoption.

Next steps:
 Second reading and adoption of the ordinance scheduled tentatively for May 2025.  Work with a consultant on a Fee study to investigate the costs associated with the program implementation (permit parking platform, permit fees, and enforcement).

Fiscal Impact
There is no fiscal impact for this item.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), as it is general policy and procedure making not applied to a specific instance and therefore it is not a “project”(California Code of Regulations, Title 14, Division 6, Chapter 3, Article 20, §15378 (b) (2)).

Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not entail an entitlement.

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. Attachment 1 – Draft RPPP Ordinance

2. Attachment 2– Draft RPPP Guidelines

3. Attachment 3 – Draft RPPP FAQ’s
431
Chapter 10.40 - RESIDENTIAL PARKING PERMIT (RPP) PROGRAM Sections:

10.40.010 Purpose.

10.40.020 Definitions.

10.40.030 Findings.

10.40.040 Designation of residential parking permit areas.

10.40.050 Procedure for establishment of residential parking permit areas.

10.40.060 Authority of Director.

10.40.070 Issuance of permits.

10.40.080 Guest parking permits.

10.40.090 Display of permits.

10.40.100 Enforcement.

10.40.110 Exempt vehicles.

10.40.120 Removal of residential parking permit area.

10.40.010 Purpose.

The purpose of this chapter is to regulate and manage residential curb parking at locations at which a high demand for parking on residential streets has been determined by the City Council to be adverse to the health, safety, welfare, and interest of the public, including residential property owners, businesses, pedestrians, and other users of the City's streets, roads, and infrastructure in a manner that provides for the health, safety, welfare and interests of the public, including ensuring productive use of off-street parking for those who need it. The procedures and standards in this chapter are intended to provide flexibility so that the City Council may adopt, after consultation with various stakeholders, including residents, businesses and institutions, parking programs that appropriately protect each neighborhood's unique characteristics.

10.40.020 Definitions.
"Director" means the Director of the Department of Public Works. "Residential parking permit area" or “RPP area” means a geographical area set by City Council resolution establishing a preferential parking permit system pursuant to California Vehicle Code Section 22507.
"Residence” or “dwelling unit” means each legal dwelling unit located immediately adjacent to a street, or portion of street, within a RPP area and with an assigned postal address. The term includes singlefamily dwellings, apartments, condominiums, and other distinct residential units including accessory dwelling units and junior accessory dwelling units.
“Resident” means an adult person who lives in a RPP area as his/her permanent place of residence, either as a tenant, occupant, or owner.
"Residential parking permit program guidelines" or "guidelines" shall mean the City of East Palo Alto Residential Parking Permit Program Guidelines, as promulgated by the Director of the Department of Public Works.
“Private service personnel” means personnel who routinely, in the performance of their business, provide a service to the residential property owner or tenant during the residential parking permit restricted hours.
432

10.40.30 Findings.

Each RPP area may be designated by the City Council only upon findings that such RPP area is required to enhance or protect the quality of life in the proposed RPP area and that such designation is necessary to provide reasonably available and convenient parking for the benefit of the residents in the RPP area. Such findings shall be based upon the following criteria established to the satisfaction of the City Council:

A. Vehicles parked in the RPP area create traffic congestion, noise, or other disruption that disrupts neighborhood life; or a shortage of reasonably available and convenient offstreet parking spaces exist in the proposed RPP area;
B. The establishment of the proposed RPP area would benefit a majority of the residents in the proposed RPP area and balance the impacts to adjoining areas outside of the proposed RPP area, and the proposed RPP would be feasible in terms of cost, administrability, and enforcement; and
C. No alternative solution is feasible or practical.

10.40.040 Designation of residential parking permit areas.

Residential parking permit areas may be designated or expanded by resolution of the City Council. The City Council shall consider for designation those areas satisfying the criteria set forth in this chapter. If the City Council determines that the criteria have been met, it may adopt a resolution designating a residential parking permit area. The designation or expansion of an RPP area may be initiated by utilizing either of the following methods:

A. Initiation by neighborhood petition. Residents may request the formation of an RPP area in their neighborhood or the expansion of an existing RPP area. The request and process shall be made, and considered, in accordance with the forms and procedures set forth in the guidelines.

The petition must be signed by residents representing at least sixty seven percent (67%) of the residences on each block upon which permit parking is proposed. Only one signature is needed per residence. The residence owner, renter, or occupant is eligible to sign the petition.

B. Initiation by City Council. The City Council may, by motion, initiate consideration of an RPP area by directing staff to undertake the data collection and outreach process set forth in Section

10.40.050B and C.

10.40.050 Procedure for establishment of residential parking permit areas.

Requests to establish or expand residential parking permit areas shall be made, and considered, in the following manner:

A. Staff Review of Neighborhood Application/Petition. The Director shall review applications to establish or expand RPP areas initiated by neighborhood residents. The applications are to be made on a form approved by the Director. Failure to provide information requested by the Director that is reasonably necessary to implement this Chapter will be grounds for denial.

Through discussions with the applicant, the Public Works Director will identify the draft program parameters, as set forth in the Guidelines, which may be amended from time to time, including, days and time limits when permit parking will be enforced and the geographic area of 433
enforcement. The applicant will coordinate collection of signatures on a petition. The City Clerk shall review the signed neighborhood petition and verify that it meets the signature requirements set forth in this chapter and the guidelines. If the RPP area request does not meet the signature requirements set forth in section 10.40.040.A., the Director shall send a letter to the petitioners denying their request.

B. Data Collection. For applications initiated by neighborhood petition and applications initiated by City Council, City staff shall promptly complete parking occupancy studies to study and quantify, to the extent possible, the nature of the problem. For eligibility to establish or expand an RPP area, parking surveys must show a minimum of seventy-five percent (75%) of all the on-street parking spaces within the proposed RPP area are occupied during the proposed permit hours. If the RPP area does not meet the minimum parking occupancy requirement, the Director may send a letter to the petitioners denying their request.

C. Community Outreach. Upon completion of data collection, City staff shall prepare a draft resolution containing the proposed boundaries and hours of enforcement. Staff shall undertake an online survey of resident support within the RPP area. The recommended threshold for the creation or expansion of an RPP area is a vote of 67% of the returned surveys in favor of the program; however, the City Council may approve an RPP area with a simple majority (50% + 1) of the returned surveys in favor of the program. Staff shall mail notices to all residences within the proposed RPP area including the following information:

1. basic parameters of the proposed RPP program (proposed RPP area, hours/days of enforcement and parking prohibitions for non-permit holders, maximum number of permits per residence, and fees),

2. a link to the City’s website with the full text of the draft resolution,

3. a link to an online survey where residents within the proposed RPP area can indicate their support or opposition to the designation of an RPP area in their neighborhood,

4. contact information for a City staff who can answer questions and assist residents without internet access with completing the survey, and

5. dates of upcoming public meetings (Public Works and Transportation Commission and City Council).

The applicant is encouraged to conduct additional outreach including holding neighborhood meeting(s) and going door to door to distribute a second copy of the notice mailed by the City to urge residents to complete the survey and attend the Public Works and Transportation Commission and City Council meetings. The results of this survey shall be reported to the Public Works and Transportation Commission and the City Council.

D. Public Works and Transportation Commission Review and Recommendation. Staff shall provide the Public Works and Transportation Commission an opportunity to consider the proposed RPP area at a noticed public hearing. The Commission shall review the draft resolution and make a recommendation to the City Council regarding the RPP area. This recommendation may include proposed modifications of the boundaries, hours of enforcement, or other matters as the Commission may deem necessary and desirable.

E. Adoption of Resolution Establishing or Expanding an RPP Area. Following the completion of the above procedures, staff shall bring a resolution designating the proposed RPP area for Council consideration. At a minimum, the resolution shall specify:

1. The findings that the criteria set forth in this Chapter have been met; 434

2. The boundaries and the name of the RPP area;

3. Hours and days of enforcement of parking time restrictions and parking prohibitions that shall be in effect for non-permit holders; and

4. The procedure for obtaining parking permits, including the fee therefor.

The City Council shall hold a public hearing on a proposed resolution to establish the Residential Parking Permit area. The Council may adopt, modify, or reject the proposed resolution.

F. Resident Notice of Newly Adopted RPP Area. Upon designation or expansion of an RPP area, the City shall provide notice informing residents about implementation of the RPP area and its details.

10.40.060 Authority of Director.

The Director is authorized to establish the Guidelines, and rules and procedures to effectuate or implement the purposes and provisions of this Chapter, as limited herein, and to produce signs, forms, and other materials necessary, or appropriate, to effectuate or implement the provisions of this Chapter.

10.40.070 Issuance of permits.

Applications to authorize parking within a residential parking permit area may be made by any resident of a dwelling unit within the residential parking permit area, and by private service personnel which routinely, in the performance of their business, provide a service to the residential property owner or tenant during permit restricted hours. Such application shall be the sole responsibility of the applicant, and shall be filed with the Director, or his or her designated representative. Applications for a parking permit must include the following documentation:

1. A current DMV driver's license for each resident or private service personnel requesting a permit,

2. A current DMV vehicle registration for each vehicle,

3. Proof of residency in a parking permit area (required only if the address on the driver's license and/or vehicle registration is not located in a parkinig permit area). The Director shall determine what constitutes acceptable proof of residency, which may include a utility bill, lease agreement, car insurance policy, or preprinted personal check with applicant's name and address, and any information the Director requires by rules and procedures; and

4. Any information reasonably necessary for implementation of this Chapter, as determined by the Director.

Unless otherwise prescribed by the resolution establishing the residential parking permit area, each residence within an RPP area may receive, upon application, one parking permit at no cost to the applicant, subject to conditions established by the Director to effectuate the purposes of this Chapter.

Additional parking permits may be purchased by applicants, upon application, subject to the availability, as determined by the Director. Permits issued to residents or private service personnel pursuant to this section shall require annual renewal. The City Council may, by resolution, establish a fee for the issuance of permits or the transfer of a permit to a different vehicle or different address.

10.40.080 Guest parking permits.
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Unless otherwise prescribed in the resolution establishing a residential parking permit area, each residence within an RPP area may receive twenty (20) one-day guest parking permits per year upon application, the form and conditions of which are approved by the Director to effectuate the purposes of this Chapter. Upon application, applicants may receive additional guest permits for one-day special events as approved by the Director.

10.40.090 Display of permits.

A. Parking permits shall be displayed in a manner determined by the Director.

B. The Director shall notify each permittee in writing of the proper manner in which to display a parking permit.

C. The proper display on a vehicle of a valid parking permit issued pursuant to this chapter grants only the privilege of parking the vehicle in the RPP area for which the permit was issued.

D. A valid parking permit issued under this chapter shall not guarantee or reserve to the holder an on-street parking space on any street or portion of street within the RPP area for which the permit was issued.

10.40.100 Enforcement.

A. The Director shall cause appropriate signs to be erected at the entrance of a residential parking permit area and at intermediate locations as deemed necessary by the Director.

B. The signs that the Director causes to be erected pursuant to this section shall provide clear notice of the days and times of the parking prohibition applicable to the street upon which the sign is erected.

C. No person shall park a vehicle in an RPP area in violation of any posted or noticed time restriction or parking prohibition unless the person has a valid and current parking permit for that vehicle or is otherwise exempt. Violations of this subsection shall constitute an infraction offense.

D. Any willful misuse of the parking permits, selling permits to others, altering permits, forging permits, copying permits, providing false or failing to provide reasonably necesssary information to obtain permits, or any other basis for revocation, as determined by the Director that would effectuate the purposes of this Chapter, are not permitted and shall constitute an infraction. Such misuse shall also result in revocation of the parking permits for a period of one (1) year. A revocation of a parking permit may be appealed to the Director by filing a request for an appeal, on a form approved by the Director, within twenty-one (21) calendar days of the revocation. The appeal must state why the permit should not be revoked. Failure to state this basis shall be grounds for revocation without an appeal. The Director shall respond within twenty-one (21) calendar days and the Director's decision shall be final.

E. Parking permit holders are not exempt from state and local traffic and parking rules.

F. Parking permits are only valid in the RPP area for which the permit is issued.

10.40.110 Exempt vehicles.
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The following vehicles are exempt from parking restrictions applicable to any RPP area: (1) vehicles owned or operated by any government agency, or contractor of a government agency, being used in the course of business; (2) refuse collection, utility, or other public agency service vehicles being used in the course of business; (3) commercial vehicles actively providing or performing services or making a pickup or delivery if parked in a manner consistent with applicable law, including the East Palo Alto Municipal Code 10.04.080; (4) any authorized emergency vehicle as defined in the California Vehicle Code when such vehicle is responding to an emergency, (5) vehicles displaying a valid disabled placard or license plate in a designated disabled parking.

10.40.120 Removal of residential parking permit area.

The City Council may, by resolution, terminate and dissolve any previously established RPP area or portion thereof. Such termination may be considered following receipt of a petition signed by residents representing at least 67 percent (67%) of the residences within the RPP area proposed for dissolution.

Only one signature is needed per residence. The Director shall remove permit parking signs in accordance with any such resolution.
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City of East Palo Alto
Residential Parking Permit (RPP) Program Guidelines

PURPOSE
The goal of the Residential Parking Permit (RPP) Program is to regulate and manage onstreet parking in residential neighborhoods. This document clarifies the procedures used by the City to implement the program.

BACKGROUND
On [DATE], the City Council adopted a Residential Parking Permit (RPP) Program Ordinance where neighborhood parking is regulated for non‐permit holders. Any neighborhood within the City may petition for an RPP area or the City Council may initiate consideration of an RPP area.

Three documents govern the creation of an RPP area in the City of East Palo Alto:

1. Chapter 10.40 of the East Palo Alto Municipal Code, which outlines the criteria that must be met and the process that must be taken for a residential neighborhood to request the designation, expansion, or dissolution of an RPP area.

2. A neighborhood‐specific resolution, which must be adopted by the City Council and outlines the specific characteristics of the individual RPP area.

3. The document within, “Residential Parking Permit (RPP) Program Guidelines”, which provides additional detail on RPP Program implementation. The Residential Parking Permit (RPP) Program Guidelines (Guidelines) may be modified by the Public Works Director and provide detail on policies and procedures related to RPP areas.

All three documents work in concert to govern the development and operation of the City’s RPP areas.

POLICIES
The Guidelines establish the framework for initiating, operating, and removing residential parking permit areas. The RPP program is intended to regulate on-street parking in parking permit areas within the City in order to enhance or protect the quality of life in the proposed RPP area according to these policies:

The RPP program is intended for use in single family and multi-family residential areas, not in mixed-use areas where residents and businesses are expected to share parking.

Implementation of an RPP area does not guarantee the availability of parking spaces on a public street, or within a specific neighborhood, because more parking permits may be issued than there are available on-street parking spaces.

The hours and days of enforcement of parking time restrictions and parking prohibitions in effect for non-permit holders will be set forth in the neighborhoodspecific resolution.

Blocks within each parking permit area will be determined based on the potential of parked cars to overflow and impact adjacent streets via a collaborative process between residents and Public Works Department staff. The final limits of the parking permit program area will be determined by the Public Works Director and subject to approval by the City Council.

Parking permits will be issued only for passenger vehicles registered to residents of a property with at least one frontage within an RPP area. Commercial trucks, boat trailers, RV’s (camping trailers, motor homes, etc.), trailers and work-type 438
commercial vehicles, including taxis and limousines, are not eligible for resident parking permits.

The maximum number of resident parking permits that may be issued per residence will be determined by the Public Works Director based on the characteristics of each neighborhood, but only one permit is issued per vehicle.

Up to twenty (20) one-day guest permits may be issued per residence each calendar year.

Permits may be transferred when the permit holder moves or the vehicle for which a permit has been issued is sold.

Signs will be posted in each RPP area indicating the time limitation and days during which parking is restricted.

Parking permits are not intended for use at parking meters, parking lots, or parking garages.

RPP parking permits are only valid for the RPP area for which they are issued.

Vehicles displaying parking permits are subject to all other parking restrictions, including loading zones, red zones, and accessible parking spaces.

Displaying a residential parking permit does not exempt the vehicle from the City’s ordinance requiring a car to be moved every 72 hours.

By resolution of the City Council, a fee may be set for the permits.

Exceptions
RPP parking restrictions do not apply to vehicles owned or operated by any government agency, or contractor of a government agency, being used in the course of business.

Any refuse collection, utility, or other public agency service vehicles actively working for a property within the limits of an RPP area may park on-street in front of the property on which they are working without a permit.

Commercial vehicles actively providing or performing services or making a pickup or delivery are not required to have a parking permit when parked within an RPP area in a manner consistent with applicable law, including the East Palo Alto Municipal Code Section 10.04.080.

Any authorized emergency vehicle as defined in the California Vehicle Code when such vehicle is responding to an emergency is exempt from parking restrictions applicable to any RPP area.

Vehicles displaying a valid disabled placard or license plate are not subject to RPP parking restrictions.

PROCEDURES
The procedures below provide for consistent parking permit area development from one neighborhood to the next. The Public Works Director has the flexibility to modify the following procedures when appropriate.

Area Creation or Expansion
Initiating a new residential parking permit area or expanding an existing RPP area requires completion of the following steps:

1. Resident completes a Residential Parking Permit Program application form and submits it to the Public Works Director.
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2. Through discussions with the applicant, the Public Works Director will identify the draft program parameters including days and time limits when permit parking will be enforced and the geographic area.

3. Applicant will coordinate collection of signatures on a petition. The petition will clearly identify the proposed streets to be included in the RPP area, the time limits, and general rules associated with the RPP program. At least 67% of the residences on each block must be reflected in the petition. Only one signature is needed per residence. The residence owner, renter, or occupant is eligible to sign the petition. Each house, apartment, condominium, accessory dwelling unit or junior dwelling unit will be considered a residence. City Council initiated requests may skip this step.

4. The City Clerk shall review applications to establish or expand RPP areas initiated by neighborhood petition to verify that it meets the signature requirements set forth in the RPP Program Ordinance and these guidelines. If the RPP area request does not meet the signature requirements, the Director shall send a letter to the petitioners denying their request.

5. Optional:
a. The applicant may request a neighborhood meeting to present the components of the RPP to the area.
b. The applicant may demonstrate the support of their homeowners’/ neighborhood association (if one exists) through the submittal of a letter of endorsement from that group. Any letters of support will be considered by the Public Works and Transportation Commission and the City Council.

6. Public Works staff will collect occupancy data on key street segments within the proposed RPP area. Only areas with an average occupancy rate of 75% or more during the proposed permit hours will continue in this process. If the RPP area does not meet the minimum parking occupancy requirement, the Director may send a letter to the petitioners denying their request.

7. After completion of the parking occupancy survey, City staff shall prepare a draft resolution containing the proposed boundaries and hours of enforcement. Staff shall undertake a survey of resident support within the RPP area. The applicant is encouraged to notify residents around the RPP area. The results of this survey shall be included in and reported to the Public Works and Transportation Commission and the City Council. The recommended threshold for the creation or expansion of an RPP area is a vote of 67% of the returned surveys in favor of the program, however the City Council may approve an RPP area with a simple majority (50% + 1) of the returned surveys in favor of the program.

8. Staff shall bring the proposed RPP area to the Public Works and Transportation Commission at a noticed public hearing. The Commission shall review the draft resolution and make a recommendation to the City Council regarding the RPP area. This recommendation may include proposed modifications of the boundaries, hours of enforcement, or other matters as the Commission may deem necessary and desirable.

9. Following the completion of the above procedures, staff shall bring a resolution designating the proposed RPP area for Council consideration. At a minimum, the resolution shall specify:
a. The findings that the criteria set forth in this chapter have been met; b. The boundaries and the name of the RPP area;
c. Hours and days of enforcement of parking time restrictions and parking prohibitions that shall be in effect for non-permit holders; d. The procedure for obtaining parking permits, including the fee therefor.

The City Council shall hold a public hearing on a proposed resolution to establish the Residential Parking Permit area. The Council may adopt, modify, or reject the proposed resolution.
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10. Upon designation or expansion of an RPP area, the City shall provide notice informing residents about implementation of the RPP area and its details.

11. The Director shall cause appropriate signs to be erected at the entrance of a residential parking permit area and at intermediate locations as deemed necessary by the Director. The signs shall provide clear notice of the days and times of the parking prohibition.

12. If the request for permit parking is denied or terminated, a second study of the same or similar RPP area will not be conducted for a minimum of 24 months unless there is a significant, identifiable change in parking characteristics as determined by the Director of Public Works.

Program Removal
The process to remove an RPP area is similar to initiation and is as follows:

1. An RPP area, or part thereof, may be removed from the permit parking program by resolution of the City Council pursuant to:
a. A valid request from the affected residential parking permit area, and a City provided petition from that neighborhood indicating support for removal of RPP restrictions signed by at least 67% of residences in the area wishing to be removed from the RPP, or
b. A determination by the Director of Public Works that removal of an RPP area is either in the community interest or is in the interest of public safety.

2. Once the petition for removal is received by staff, the City Clerk shall review the petition to verify that it meets the signature requirements set forth in the RPP Program Ordinance and these guidelines. If the petition to remove an RPP area does not meet the signature requirements, the Director shall send a letter to the petitioners denying their request.

3. Staff shall bring the proposed removal of an RPP area to the Public Works and Transportation Commission at a noticed public hearing. The Commission shall review the petition along with testimony from residents and available data provided by City staff on the operation and enforcement of the RPP area and make a recommendation to the City Council regarding the potential removal of the RPP area. This recommendation may include proposed removal of the RPP area, modifications of the boundaries, hours of enforcement, or other matters as the Commission may deem necessary and desirable.

4. Following the completion of the above procedures, the City Council shall hold a public hearing on a proposed resolution to remove the Residential Parking Permit area. The Council may adopt, modify, or reject the proposed resolution.

5. If the request for removal is approved by the City Council, the neighborhood is notified of the decision, and the Director of Public Works shall cause the RPP signs to be removed.

OBTAINING A PARKING PERMIT
The City of East Palo Alto uses a virtual system to issue and manage parking permits. Under this system, parking permit software is used to link the vehicle license plate number to an electronic permit. The virtual permit system eliminates the need for hang tags or stickers and allows residents to obtain RPP area parking permits online 24 hours a day, 7 days a week at [LINK]. Residents who do not have access to the internet or need assistance with the online permitting process may apply for RPP permits by calling (XXX) XXX-XXX or visiting the City Permit Center at 1960 Tate Street. Assistance is available Monday through Friday, between 9 a.m. and 5 p.m. Interpretation services are available in Spanish and XXXX at this number. 441
Two types of permits are available: annual resident parking permits and one-day guest parking permits. Annual resident parking permits are intended for use by residents of a specific property within the RPP Area. Private service personnel such as a nanny, baby‐ sitter, caregiver, household employee, or other regular visitor to the residence may be issued a resident parking permit if they routinely, in the performance of their business, provide a service to the residential property owner or tenant within an RPP area during permit restricted hours. One-day guest parking permits may be obtained by residents in RPP areas for use by their occasional guests.

Resident Parking Permits
The requirements to obtain a resident parking permit for a resident of an RPP area are:

1. A completed application form (online) in the residents’ name and address.

2. A current DMV driver’s license for each resident requesting a permit.

3. A current DMV motor vehicle registration for each vehicle for which the applicant is requesting a resident parking permit.

4. Proof of residency reflecting the permit address in the RPP area (required only if the address on the driver’s license and/or vehicle registration is not located in a parking permit area). Acceptable proof of residency includes a utility bill, car insurance policy, lease agreement or a preprinted personal check with the resident’s name and address.

The requirements to obtain a resident parking permit for private service personnel are:

1. A completed application form (online) listing both the resident’s and service provider’s name and address.

2. A current DMV driver’s license for each service provider requesting a permit.

3. A current DMV motor vehicle registration for each vehicle for which the applicant is requesting a parking permit.

4. Proof of residency in the resident’s name reflecting an address in the RPP area (required only if the address on the driver’s license and/or vehicle registration is not located in a parking permit area). Acceptable proof of residency includes a DMV ID card, utility bill, car insurance policy, lease agreement or a preprinted personal check with the resident’s name and address.

5. A letter from the resident identifying the permit applicant as a private service provider at their residence.

Unless otherwise prescribed by the resolution establishing the residential parking permit area, each residence within an RPP area may receive, upon application, one resident parking permit at no cost to the resident. Additional resident parking permits may be purchased by residents, upon application, subject to the availability as determined by the Director. Permits issued to service personnel shall count towards the maximum number of resident parking permits that may be issued per residence. Permits issued to residents or private service personnel pursuant to this section shall require annual renewal.

Guest Parking Permits
Unless otherwise prescribed in the resolution establishing a residential parking permit area, each residence with an RPP area may receive twenty (20) one-day guest parking permits per year upon application. Upon application, residents may receive additional guest permits for one-day special events as approved by the Director.

Parking Permit Fees
The City Council may, by resolution, establish a fee for the issuance of permits or the transfer of a permit to a different vehicle or different address.

ENFORCEMENT
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No person shall park a vehicle in an RPP area in violation of any posted or noticed time restriction or parking prohibition unless the person has a valid and current parking permit for that vehicle or is otherwise exempt.

The parking permit software tracks electronic permits linked to the registered vehicle’s license plate number. When license plates are scanned by the enforcement staff, registered license plate information is automatically referenced against the parking permit database. If the license plate is not connected to a valid virtual permit, the vehicle will be subject to a parking citation. Though not required, individuals who want to place a physical permit on their dashboard may print one with the link provided by [VENDOR] after payment has been made.

Any willful misuse of the parking permits, selling permits to others, altering permits, forging permits, copying permits, and providing false information to obtain permits or any other basis for revocation, as determined by the Director that would effectuate the purposes of this Chapter,are not permitted. Such misuse shall result in revocation of the parking permits for a period of one (1) year. A revocation of a parking permit may be appealed to the Director of Public Works by filing a request for an appeal within twenty-one (21) calendar days of the revocation. The appeal must state why the permit should not be revoked. Failure to state this basis shall be grounds for revocation without an appeal. The Director shall respond within twenty-one (21) calendar days and the Director's decision shall be final.

Violations of Chapter 10.40 of the East Palo Alto Municipal Code shall constitute an infraction offense subject to fine or penalty as the City Council may set by ordinance [TO BE ESTABLISHED].
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City of East Palo Alto Residential Parking Permit (RPP) Program Application The purpose of this form is to enable neighborhoods to request to be annexed to an existing Residential Parking Permit (RPP) area or initiate a new RPP area in accordance with the City of East Palo Alto’s adopted RPP Program Guidelines. This form must be filled out in its entirety and submitted to:

City of East Palo Alto
Public Works Department
1960 Tate Street
East Palo Alto, CA 94303
Feel free to attach additional sheets containing pictures, occupancy maps, additional testimony or additional text if the space provided is insufficient.

1. Requesting Individual’s Contact Information
Name: Address: ____ ___________
_______
Phone Number: Email:
______________________________

2. Please describe the nature of the parking problem in your neighborhood. a. What streets in your neighborhood do you feel are negatively affected by parking?
b. How often does the parking issue occur?
c. Does the parking issue vary from month to month, or season to season?

3. Can you identify a parking impact generator that causes overflow parking in the neighborhood? Are there any facilities (churches, schools, shopping centers, etc.) near this location that generate a high concentration of vehicle and pedestrian traffic? Please list your understanding of the causes:
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4. Please describe how a Residential Parking Permit Area will be able to eliminate or reduce parking issues affecting the neighborhood. Please include your suggestion for the boundary of the program:

5. Select which time period you would like to see parking permits enforced in your neighborhood:
o Nighttime – permit required to park 8 PM - 8 AM 7 days/week o Business hours – permit required to park > 3 hours M-F 8 AM – 6 PM o All day – permit required to park any time of the day 7 days/week o Overnight – Midnight - 5am

6. Is there neighborhood support for establishing a Residential Parking Permit area? Have you contacted your HOA/Neighborhood Association (if one exists)? 445
City of East Palo Alto Residential Parking Permit (RPP) Program Neighborhood Petition Form (Use a Separate Form for Each Street) THE UNDERSIGNED BELOW AGREE TO THE FOLLOWING:

1. All persons signing this petition certify that they reside on the following street, which is being considered for residential permit parking:__________________________________

2. The undersigned residents support designating the above-listed street within a Residential Parking Permit (RPP) area that would require residents to obtain a permit to use on-street parking during the following time period: ___________________________

3. The following contact person(s) represent the neighborhood as facilitator(s) between the neighborhood residents and City of East Palo Alto staff in matters pertaining to this request:

Name: Address: __ _ _ _ _ Phone #: ____________
Name: Address: __ _ _ _ _ Phone #: ____________
Name: Address: __ _ _ _ _ Phone #: ____________

ONLY ONE SIGNATURE PER RESIDENCE
Name (Please Print) Address Signature

1. 2.

3. 4.

5. 6.

7. 8.

9. 10.

11. 12.

13. 14.

15. 16.

17. 18.

19. 20.

21. 22.

23. 24.

25. 26.
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27. 28.
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Frequently Asked Questions

1. How do I get a residential parking permit on my street? To start this process you need to complete and submit a Residential Parking Permit Program Application Form. After staff has reviewed the request they will contact you to discuss the request. If the area is eligible for residential permits, staff will guide you and your neighborhood through the process.

2. Which streets are eligible for residential parking permit areas? Streets that are in a residential (single or multi-family) neighborhood Streets where on-street parking is at least 75% full during the peak period

3. What are the steps to create a new permit area?
City and applicant decide on the days and time limits for the permit area Applicant collects petition signatures from at least 67% of the addresses on each block
City collects parking data
City refines permit area and permit parking restrictions based on the data City surveys all addresses in permit area to gauge resident support Public Works and Transportation Commission consider the proposed residential permit parking area at a public hearing and make recommendation to City Council City Council considers designation of a residential permit parking area at a public hearing and may adopt, modify, or reject the draft ordinance creating/modifying a residential parking permit (RPP) area

4. How many permits will be issued per household?
Each residence is eligible to receive at least one annual resident parking permit. The maximum number of resident parking permits per residence will be determined for each RPP area by the Director of Public Works based on the characteristics of that neighborhood. Each residence may request 20 (daily) guest permits per year. An individual is permitted to park on their own driveway without a permit. Parking in front yard areas other than the driveway is not permitted [East Palo Alto Municipal Code Section 18.30.080.A.3]

5. What are the time restrictions?
Time restrictions are set when the RPP area is created based on the characteristics of that neighborhood. Suggested options for parking permit enforcement include:
 Nighttime – permit required to park 8 PM - 8 AM 7 days/week  Business hours – permit required to park > 3 hours M-F 8 AM – 6 PM  All day – permit required to park any time of the day 7 days/week  Overnight – Midnight - 5am

6. What do permits cost?
The first resident parking permit per residence will be free of charge. The City Council may impose fees for the issuance of additional permits or the transfer of a permit to recover all or a portion of the costs of administering the program.

7. How will the program be enforced?
Residents will provide their vehicle license plate information when obtaining their permit(s) online. The parking permit software will generate an electronic permit linked to the registered vehicle’s license plate number. When license plates are scanned by East Palo Alto Community Service Officers, your registered license plate information is automatically referenced against the parking permit database. If the license plate is not connected to a valid virtual permit, the vehicle will be subject to a parking citation. 448

8. Do you require proof of residency to request a permit? Yes, individuals must prove residency in order to be issued a parking permit. This can be done with a recent utility bill, a current driver’s license, or something similar.

9. Are vehicle registration, vehicle license plate number, proof of insurance, and a driver’s license required to get a permit?
Applicants need to show a current driver’s license for each resident requesting a permit, the current vehicle registration for the permitted vehicle and provide the license plate number for enforcement purposes, but proof of insurance is not required.

10. Are permits neighborhood specific?
Yes, each parking permit is issued for a specific RPP area. With a valid parking permit, you may park within the boundaries of that specific RPP area only.

11. Are permits transferable?
Yes, the virtual parking permits are transferable. Individuals can add or remove vehicles on their RPP account at any time. This includes temporarily assigning loaner vehicles or rental cars. This also allows residents with multiple vehicles to change which of their vehicles is associated with a resident parking permit as needed.

12.How long will the permit be valid?
Residential parking permits are valid for one year. Renewal dates are set when each RPP area is created.

11.How do I get a new permit or renew my permit?
Residents may obtain RPP area parking permits online 24 hours a day, 7 days a week at [LINK]. Residents who do not have access to the internet or need assistance with the online permitting process may apply for RPP permits by calling (XXX) XXX-XXX or visiting the City Permit Center at 1960 Tate Street. Assistance is available Monday through Friday, between 9 a.m. and 5 p.m. Interpretation services are available in Spanish and XXXX at this number.

The process for renewing a permit is the same as getting a new permit.

13.What if I have guests coming?
Each residence is eligible to obtain up to 20 guest parking permits per year. Residents may apply for additional guest permits for one-day special events at the discretion of the Director of Public Works.

14.How will people know that permits are required for street parking? Parking signs will be posted on at the entrance to residential parking permit area and at intermediate locations with the neighborhood that list the time limit (if applicable), hours and days of enforcement, and the exception for people with parking permits. When a new area is established, a letter will be sent to residents notifying them of the change.

15. Will service providers (PG&E, Plumber, Cable/Internet, FedEx/UPS/USPS, etc.) be able to park in a RPP area without a guest permit in order to service my home? Yes, public utility and commercial vehicles actively providing or performing services or making a pickup or delivery (i.e. plumber, cable/internet, FedEx/UPS/USPS, etc.) are not required to have a parking permit when parked within an RPP area. In addition, any emergency vehicle (police, fire, ambulance), or E-plated vehicles engaged in work or providing services are able to temporarily park without a permit in an RPP area.

16. Can I request a parking permit for a caregiver or other private service provider? Yes, residents may obtain resident parking permits for use by caregivers (i.e. babysitters, nannies, nurses, etc.) and other private service providers (i.e. housekeepers, gardeners, etc.) that routinely use their personal vehicle when providing services at your home during permit 449 restricted hours. Permits issued to service personnel shall count towards the maximum number of resident parking permits that may be issued per residence.

17. Do I need a permit for my scooter or motorcycle to park in an area subject to permit parking restrictions?
Yes, scooters and motorcycles are considered a vehicle. 450
POLICY AND ACTION 17.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: March 18, 2025
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Shiri Klima, Assistant City Manager
Maurice Baker, Community Services Manager
SUBJECT: 2025 TOT Grants Program Notice of Funding Availability Release Recommendation

1. Provide any direction to staff on goals for 2025 TOT CYFS Grant Program

2. Adopt a resolution:
a. Authorizing the City Manager to release a $350,000 Notice of Funding Availability for the 2025 Transient Occupancy Tax grant program and to allow the Community Grants Review Panel to make recommendations on the application pool. b. Increasing the maximum grant award for the 2025 TOT Grant program from $40,000 to $75,000.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority: Enhance Community Services and Parks for Residents Background
Chapter 3.68 of the Municipal Code, known as the uniform transient occupancy tax (TOT) ordinance, imposes a 12 percent tax on hotel rents for transient stays. The ordinance broadly defines hotels to include hotels, motels, lodging houses, apartment houses, dormitories, and similar structures occupied by transients for dwelling, lodging, or sleeping purposes. A transient stay refers to any stay of 30 or fewer consecutive days.

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POLICY AND ACTION 17.1
In 2002, East Palo Alto voters modified the TOT ordinance, mandating that 10 percent of TOT revenue be allocated to affordable housing and another 10 percent to children, youth, and family services, including services for senior citizens (CYFS).

Municipal Code Section 3.68.150, specifies that CYFS revenues may only be used to:

1. Support comprehensive, integrated, and community-based systems of services and support systems for children, youth, and their families and senior citizens to promote individual and community health, recreation, and cultural arts, and;

2. Exclusively to fund grants or loans to nonprofit service providers headquartered in East Palo Alto OR for which a majority of clients served are East Palo Alto residents.

Community Grants Review Panel
To guide the allocation of CYFS funding, the City Council established the Community Grants Review Panel (CGRP) in Spring 2014. The CGRP, consisting of East Palo Alto residents, business owners, and industry experts, provides funding recommendations. The Community Services Manager convenes the panel, which currently includes:
 A Four Seasons Hotel Representative
 A Large Business Owner/Representative
 A Small Business Owner/Representative
 A Grant-making Expert; and
 A Community Resident
Due to staff vacancies and the COVID-19 pandemic, the City did not issue TOT grants between 2019 and 2022. By January 2024, the CYFS fund balance had grown to over $1.2 million, enabling the Council to increase grant awards. Before the 2024 grant cycle, awards ranged from $5,000 to $16,000. However, in 2024, the Council raised the maximum award to $40,000 for programs running three months or longer. The City ultimately awarded over $600,000 in CYFS grants to 19 organizations.

For the 2025 TOT CYFS grant cycle, staff recommends allocating $350,000 and increasing the maximum grant award to $75,000. Staff also seeks City Council direction on any funding priorities for the 2025 cycle.

Analysis
Update on the 2024 TOT CYFS Grant Cycle
During the 2024 Cycle, 22 organizations applied for a total of $789,190 in funding. The CGRP and staff initially recommended awarding $455,052 to 13 organizations. The City Council, seeking to expand funding, appropriated an additional $150,000. The CGRP and staff subsequently recommended grants to six additional organizations, leading to a final award total 452
POLICY AND ACTION 17.1
of $605,052 to 19 organizations.

To receive funds, grantees must meet the City’s insurance requirements, submit financial documentation, fulfill their scope of work, provide timely reports, and submit receipts/invoices.

Some grantees struggle to meet these requirements, requiring significant City staff time and support. At the time of this report, two of the 19 CYFS grantees from 2024 have not yet completed the contracting process.

Proposed Improvements for the 2025 TOT CYFS Grant Cycle  To enhance the administration of TOT CYFS grants, staff recommends: Awarding a maximum of 12 grants.
 Allocating a total of $350,000 and increasing the maximum grant amount from $40,000 to $75,000.

The estimated CYFS fund balance for 2025 is $980,000, with projected annual revenue.

Allocating $350,000 in 2025 awards will leave over $500,000 in reserve for 2026, excluding 2026 revenue.

City Council Direction on Funding Priorities
Before releasing the Notice of Funding Availability (NOFA), staff seeks City Council input on funding priorities for 2025. If the proposed activities comply with Municipal Code Section

3.68.150, the Council may prioritize specific program categories, such as athletics, education, technology, leadership, or senior programs. Historically, the Council has authorized grants for a broad range of activities.

Next Steps
If the Council approves, staff will proceed with the following timeline:
 March 21, 2025: Post NOFA through public channels.
 April 1, 2025: Host Mandatory Informational Sessions for interested organizations.  April 4, 2025: Respond to questions from the Session or written inquiries.  April 22, 2025: Proposal submission deadline.
 April 24-29, 2025: Community Grants Review Panel review period.  May 20, 2025: Council review of recommended awards.
 June TBD: Onboard new vendors, including contract negotiation and insurance verification.

Items for Discussion:

1. Should the City Council prioritize funding for specific programs in the 2025 cycle? 453
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2. Does the Council agree with the staff recommendation to allocate $350,000 in grants?

3. Should the City continue with the current CGRP members or modify the panel? a. Adora Manalo (Four Seasons Representative)
b. Q. Smith (Community Resident)
c. Michelle Goudeaux (LBA Realty, Large Business Owner/Representative) d. Debra Turner (Above All Insurance, Small Business Owner/Representative) e. Alma Pulido (CZI Foundation, Grant-Making Expert and Community Resident)

4. Should the grant maximum be increased from $40,000 to $75,000, or should a different amount be set?

5. Should the 2025 grant program limit the number of awarded organizations to12, or should a different number be considered?
Fiscal Impact
As of June 30, 2024, the City's TOT fund balance stood at $1.39 million. After deducting $734,000 for the 2024/2025 grant cycle, the balance is projected at $665,000. The City expects to receive $315,000 in annual revenue and interest for FY 2024-25, bringing the fund balance to approximately $980,000. Upon grant approval, staff will deduct the awarded amount accordingly.

Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Environmental
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not involve an entitlement.

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. Resolution.

2. 2024 Grant Award Recipients.
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Resolution No. XX-2025 1 of 2
RESOLUTION NO. XX– 2025

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
AUTHORIZING THE CITY MANAGER TO RELEASE A $_______ NOTICE OF FUNDING AVAILABILITY FOR THE 2025 TRANSIENT OCCUPANCY TAX GRANT PROGRAM AND TO

ALLOW THE COMMUNITY GRANTS REVIEW PANEL TO MAKE RECOMMENDATIONS ON

THE APPLICATION POOL WHILE INCREASING THE GRANT MAXIMUM AWARD FOR THE 2025 GRANT PROGRAM FROM $40,000 TO $_________
WHEREAS, to ensure that our residents continue to have a wide array of activities available for them, the Community Services division has maintained the Transient Occupancy Tax (TOT) grants program since a general election confirmed it on November 2, 2022; and WHEREAS, ten percent of revenues from the hotel residency tax accumulated by the Four Seasons Hotel Silicon Valley was to be allocated to the Children, Youth, and Family Services including Seniors for programming that is executed by local non-profits or organizations that serves majority East Palo Alto residents according to East Palo Alto Municipal Code 3.68.150; and WHEREAS, the program is annual but due to the pandemic and staff vacancies, the fund balance has grown to over $1,000,000 (as of 2024) with a conservative increase of $250,000 annually; and
WHEREAS, on May 7 2023, Council made a recommendation to approve the highest amount of TOT funding in one cycle of $605,051.99 for 19 organizations; and WHEREAS, to provide a more effective level of operation, staff is recommending cap grant awards at 12 organizations for the 2025 TOT grants program and increase the amount of funding to $75,000 for organizations that can prove that they have or serve at least 2,000 unique participants in one calendar year; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of East Palo Alto hereby:

1. Finds the foregoing recitals are true and correct, and are incorporated by this reference into this action;

2. Authorizes the City Manager to release a $_______ notice of funding availability for the 2025 Transient Occupancy Tax grants program and to allow the Community Grants Review Panel to make recommendations on the application pool, capped at 12 grantees;

3. Increasing the maximum award amount for the 2025 grant program from $40,000 to $_________; and
Finds that the action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.

PASSED AND ADOPTED this 18th day of March 2025, by the following vote:
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Resolution No. XX-2025 2 of 2
AYES:

NOES:

ABSENT:

ABSTAIN:

Martha Barragan, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
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2024 Transient Occupancy Tax Grant Program
Award List
(listed alphabetically)
Round 1 (approved April 5, 2024)
Organization Name Requested
Amount
Grant Amount
Anamatangi Polynesian Voices $38,589.99 $38,589.99
East Palo Alto Boxing Gym $40,000.00 $40,000.00
East Palo Alto Razorhawks $30,962.00 $30,962.00
EPA Senior Center Inc. $40,000.00 $30,000.00
EPACenter $40,000.00 $40,000.00
East Palo Alto Community Archive $20,000.00 $20,000.00
Foundation for a College Education $40,000.00 $40,000.00 Hope Horizon $40,000.00 $40,000.00
Live in Peace $40,000.00 $40,000.00
Mid-Peninsula Athletic Association $25,500.00 $25,500.00 Paxton Sports Academy $40,000.00 $40,000.00
Sign/Fun Gypsies $40,000.00 $30,000.00
Youth Community Services $40,000.00 $40,000.00
Total Organizations: 13 $475,051.00 $455,051.99
Round 2 (approved May 7, 2024)
Organization Name Requested Amount Grant Amount
Bay Area Urban Eagles $40,000.00 $30,000.00
Beyond Barriers Athletic
Foundation
$40,000.00 $20,000.00
CoolineKids $20,000.00 $20,000.00
East Palo Alto Tennis & Tutoring $40,000.00 $30,000.00
Fresh Approach $40,000.00 $30,000.00
St. Mark AMEZ $26,500.00 $20,000.00
Total Organizations: 6 $206,500.00 $150,000.00
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East Palo Alto City CouncilMarch 18, 2025

East Palo Alto City Council
March 18, 2025