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they must exhaust all accrued leaves (except sick leave) in connection with the leave. The exhaustion of accrued leave will run concurrently with the leave under this policy.
B. If an employee requests leave for their own serious health condition, in addition to exhausting accrued leave, the employee must also exhaust accrued sick leave.
6.13.6. Notice Requirement
A. Although the Town recognizes that emergencies arise which may require employees to request immediate leave, employees are required to give as much notice as possible of their need for leave. If leave is foreseeable, at least thirty (30) days notice is required and employees should consult with their supervisor regarding scheduling of planned medical treatment or supervision in order to minimize disruption to the Town’s operations.
If the employee cannot provide 30 days’ notice, the employee must inform the Town as soon as practical. In addition, if an employee knows that they will need leave in the future, but does not know the exact date(s) (e.g. for the birth of a child or to take care of a newborn), the employee shall inform their supervisor as soon as possible that such leave will be needed.
B. If the Town determines that an employee's notice is inadequate or the employee knew about the leave in advance of the request, the Town may delay the granting of the leave until it can, in its discretion; adequately cover the position with a substitute
6.13.7. .Medical Certification
A. For leaves taken because of the employee's or a covered family member's or a designated person’s serious health condition, the employee must submit a completed "Physician or Practitioner Certification" form or equivalent notice and return the certification to the City Manager or designee. If leave is needed to care for a sick family member or designated person, the employee must submit a “Physician or Practitioner Certification” stating: date of commencement of the serious health condition; probable duration of the condition; estimated amount of time for care by the health care provider; and confirmation that the serious health condition warrants your participation. If leave is needed for the employee’s serious health condition, the employee must submit a “Physician or Practitioner Certification” stating: date of commencement of the serious health condition; probable duration of the condition; and the employee’s inability to work at all or to perform any one or more of the essential functions of the position because of the serious health condition. Medical certification must be provided by the employee within
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fifteen (15) days after leave is requested, or as soon as is reasonably possible.
B. The Town may require a second or third opinion (at Town's expense), periodic reports on the employee's status and intent to return to work, and a fitness-for-duty report to return to work.
C. All documentation related to the employee's, family member's, or registered domestic partner’s medical condition will be held in confidence and maintained in the employee's medical records file separate from the regular personnel file.
6.13.8. Effect on Benefits
A. Leave under this policy is unpaid. While on leave, the employee’s health insurance premiums will be paid by the Town to the extent that they are paid while the employee is on the job. However, employees will not continue to receive other benefits which are not provided pursuant to the Town's group health plans. Employees will be eligible to participate in employment benefit plans, however, to the same extent and under the same conditions as would apply to employees on unpaid leave granted by the employer for purposes other than CFRA Leave.
B. If applicable, employees may make the appropriate contributions for continued coverage under their health insurance plans either through payroll deduction or by direct payment to the Finance Department. The employee will be advised in writing at the beginning of the leave period as to the amount and method. Employee contribution amounts are subject to any change in rates that occurs while the employee is on leave.If an employee's contribution is more than thirty (30) days late, the Town may terminate the employee's insurance coverage.
C. Employees may re-enroll in those insurance plans that they have chosen to discontinue while on unpaid leave on the first of the month following their return.
D. If the employee fails to return from CFRA leave for reasons other than (1) the continuation of a serious health condition of the employee or a covered family member or (2) circumstances beyond the employee's control (certification required within thirty (30) days of failure to return for either reason), the Town may seek reimbursement from the employee for the portion of the premiums paid by the Town on behalf of that employee (also known as the employer contribution) during the period of leave. Likewise, if the employee fails to return from CFRA leave, the Town’s obligation to maintain the employee’s group health plan benefits ends (subject to any applicable COBRA rights).
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E. An employee is not entitled to seniority or benefit accrual during periods of unpaid leave but will not lose accruals earned prior to leave. Time counted towards an employee’s anniversary date shall also be deferred for the time of the leave without pay.
6.13.9. Job Protection
A. If the employee returns to work before or at the end of twelve (12) weeks following a family/medical leave, they will be reinstated to their former position or an equivalent position with equivalent pay, benefits, status and authority.
B. The employee's restoration rights are the same as they would have been had the employee not been on leave. Thus, if the employee's position would have been eliminated or the employee would have been terminated but for the leave, the employee would not have the right to be reinstated upon return from leave.
C. If the employee fails to return at the end of a family/medical leave, the employee will be reinstated to their same or similar position only if the position is available and the Town deems that it is appropriate to do so, in accordance with applicable laws and these Personnel Rules.
6.13.10. Family/Medical Leave Forms to Be Submitted By The Employee Employees must fill out the following applicable forms in connection with leave under this policy.
1. Request for Family/Medical Leave Form
2. Certification of Physician or Practitioner
3. Authorization for Payroll Deduction for Benefit Plan Coverage Continuation During a Family/Medical Leave of Absence
4. Fitness for Duty to Return from Leave
5. Certification of Qualifying Exigency for Military Family Leave
6.14 PREGNANCY DISABILITY LEAVE
An employee unable to work due to pregnancy is eligible for up to four (4) months of unpaid pregnancy disability leave (PDL) as defined by law, so long as the employee's attending physician certifies that they are physically unable to work due to pregnancy or a pregnancyPage 342 of 756 44 Town of Los Altos Hills
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related condition. During said leave of absence without pay, the employee has the option of using accumulated sick leave, compensatory time and/or vacation credits. The maximum combined leave for California employees for both Pregnancy Disability and Family Care Leave for the birth of a child is four (4) months plus twelve (12) work weeks, assuming that the employee is disabled by pregnancy for four (4) months and requests and is eligible for twelve (12) weeks of CFRA Leave. Insurance premiums will be paid by the Town to the extent that they were paid when the employee was at work only while they are using accrued leave time. They will be responsible for paying for their own insurance premiums while they are on unpaid leave. Information regarding such payments will be available in the Finance Department.
After PDL and CFRA leave, if applicable, expires and if the employee is on unpaid status or the employee has less than 20 hours per week on their timesheet, the employee may elect to continue and enroll in COBRA benefits at employee’s expense.
The employee will be accruing sick leave, floating holiday and vacation leave during the period of time, if any, the employee is in paid status. Any time the employee’s hours adjust to less than 40 hours per week, regardless of paid status, the employee’s accrual rate (sick leave, vacation leave, floating holiday) will be prorate and adjusted accordingly. Sick leave, floating holiday and vacation leave do not continue to accrue during any period the employee is on unpaid status.
Under the California Family Rights Act (CFRA) eligible employees are entitled up to 12 additional weeks of leave to bond with the baby. To be eligible for the CFRA bonding leave, employee must be employed by the Town for at least one year and have worked at least 1250 hours during the year preceding the leave. The leave is unpaid, but the employee may use floating holiday, compensatory time and vacation leave in order to receive pay during the leave. The employee may use sick leave for a baby’s illness or doctor’s appointment when applicable to receive pay during the leave. Bonding leave must be used within one year of the birth of the baby.An employee who plans to take PDL must give reasonable notice (not less than 4 weeks if anticipated or as soon as possible if the leave is unforeseen) before the date employee expects to take the leave.
Upon expiration of the approved leave, the employee shall be reinstated to her former position or to an available comparable position. The comparable position is one having similar terms of pay, location, job content and promotional opportunities. However, as with Family Leave, an employee has no greater right to reinstatement or to other benefits or conditions of employment than if the employee had been continuously employed during the pregnancy or pregnancy leave. Prior to the employee being reinstated, the department head may require a statement from the attending physician that the employee is physically capable of resuming the regular duties of her position. If an employee requires reasonable accommodations as a result of pregnancy, employee should consult with Human Resources. Employees disabled by pregnancy and employees on leave to bond with a baby may be eligible for benefits under State Disability Insurance. Additional information is available at www.edd.ca.gov/Disability.
Failure to return to work after the authorized four-month leave period results in the
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employee having no reinstatement rights.
6.15 ADOPTION LEAVE
Upon request, a leave of absence without pay for up to four (4) work weeks will be granted to adoptive parents. Such leave must be used within one year of the adoption. The Town will pay health and welfare benefits for the duration of the leave as the same rate as prior to the leave consistent with the contributions as provided for under the existing Employee Handbook.
If the employee is eligible for CFRA (employed by the Town for at least one year and worked at least 1250 hours during the year preceding the leave), employee may be eligible for up to 12 work weeks total (the above four (4) work weeks plus an additional eight (8) work weeks) for bonding with the adopted child during the first year after adoption. The employee may be eligible for health benefits during the twelve (12) work week period at the same rate as prior to the leave as provided for under the existing Employee Handbook.
During adoption leave, accrued vacation may be used by the employee at their option in order to receive pay during the leave. Sick leave may only be used during the leave in the event of illness or medical appointments for the adoptive child during the leave.
LEAVE WITHOUT PAY Upon the request of the employee and the recommendation of the department head, a leave of absence without pay may be granted by the City Manager, in their absolute discretion, to an employee. Requests for leave of absence without pay shall state specifically the reason for the request, the date when it is desired to begin the leave, and the date of return. A leave of absence without pay may be granted for a period not to exceed one year.
Failure of the employee to return to their employment upon the termination of any authorized leave of absence shall constitute a separation from service of that employee subject to due process procedures for separation.
Leave of absence without pay shall not be construed as a break in service or employment, and rights accrued at the time the leave is granted shall be retained by the employee; however, vacation credits, sick leave credits, all other paid leaves, holidays and fringe benefits and other similar benefits shall not accrue to a person granted such leave during the period of absence. Nor shall the employer be required to maintain contributions toward group insurance or retirement coverage. During the period of such leaves, all service and leave credits shall be retained at the levels existing as of the effective date of the leave. However, time counted toward an employee’s anniversary date shall be deferred for the time of the leave without pay. The employee shall be reinstated to their former position or to an available comparable one if the former position is abolished during the period of leave and the employee would otherwise not have been laid off.
6.16 SUPERVISORY DISCRETION
Department heads shall have the discretion to place employees on sick leave when in the
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judgment of the department head, the presence of the employee at work would endanger the health and welfare of other employees or where the illness or injury of the employee interferes with the performance of such employee's duties.
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SECTION 7
COMPENSATION AND PAYROLL PRACTICES
7.1 PREPARATION OF COMPENSATION PLAN
The City Manager or designee, or the person or agency employed for that purpose, shall, during the budget preparation period each year or whenever directed by the City Council, prepare a Compensation Plan covering all classes of positions, excluding the City Manager position, showing a range of pay for each position.
7.2 ADOPTION OF PLAN
The Compensation Plans for all positions shall be adopted by the City Council and may be amended from time to time by resolution of the City Council. Amendments and revisions of the plans may be suggested by an interested party. At the discretion of the City Manager, such amendments and revisions may be submitted to the City Council. The City Manager may approve an hourly rate of compensation for temporary positions, based on the Council- approved hourly Compensation Plan with adjustments for special circumstances.
Notice of City Council consideration of the proposed Compensation Plan, amendments, or revisions shall be posted in the manner prescribed by State Law. No position shall be assigned a salary not in conformance with the salary schedule unless the salary schedule for the class is amended in the same manner as herein provided.
7.3 AUTHORIZATION OF OVERTIME
For the purpose of this provision, overtime includes double-time, call-out, and stand-by.
Non–exempt employees may be required to work overtime at the discretion of their supervisor. The supervisor shall be empowered to authorize or require overtime as needed, including but not limited to the following types of situations:
1. To take care of operating emergencies;
2. To handle peak workloads or to finish incomplete work when it is not possible or practical to employ additional personnel;
3. To attend meetings connected to Town business outside of regular work hours;
4. To meet temporary conditions where the Town is unable to secure qualified personnel to fill authorized positions; or
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5. On occasions as deemed necessary in the judgment of the responsible supervisor.
Non–exempt employees shall not be allowed to perform any overtime work unless such work has been authorized in-writing by their supervisor.
7.3.1 Overtime Pay at Time-and-a-Half
Non-exempt employees shall be compensated for overtime worked at the rate of one and one-half (1 1/2) times their regular hourly rate for all hours worked in excess of forty (40) hours in a workweek.
Subject to the limitations described in Section 6.6, an employee may choose to receive compensatory time off hours at the rate of one and one-half (1.5) hours for each hour of overtime worked. The time when compensating time off may be taken shall be at the discretion of the supervisor.
Hours worked shall be defined, for the purpose of determining overtime as those hours for which an employee is compensated by the Town for regular work, holidays, sick leave, vacation and compensatory time off. These hours shall be counted toward the accumulation of the work week as defined in this manual.
7.3.2 Overtime Pay at Double
In compliance with California Labor Law, non-exempt employees shall be compensated for overtime worked at the rate of two (2) times of their regular hourly rate for
● all hours worked in excess of 12 hours in any workday ● all hours worked in excess of eight on the seventh consecutive day of work in a workweek; or
● all hours worked on official holiday (listed on Section 6.4)
7.4 DEFINITION OF EXEMPT EMPLOYEE
Exempt employees are paid on a salary basis and are not subject to the overtime pay requirements of the Fair Labor Standards Act. The Town has determined that various executive, administrative and/or professional employees are exempt from the overtime requirements of the Fair Labor Standards Act (FLSA). Employees in the following job classifications are considered exempt:
● City Manager
● Assistant City Manager
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● Deputy City Manager
● City Clerk
● Administrative Services Director
● Finance Director
● Community Development Director
● Assistant Community Development Director/Chief Building Official ● Public Works Director/City Engineer
● Finance Manager
● Utility Engineering Manager
● Project Manager
● Principal Planner
● Community Services Manager
● Senior Maintenance Superintendent
● Maintenance Superintendent
● Management Analyst II/Management Analyst I
● Senior Engineer / Senior Planner / Senior Accountant
● Assistant to the City Manager
● Building Official
● Deputy Building Official/Plan Examiner
Notwithstanding, in the event that the existence or threatened existence of a "local emergency" proclaimed in accordance with Title 4, Chapter 1, section 4-1.08 of the Municipal Code, and/or a disaster or a state of emergency that affects the Town of Los Altos Hills is proclaimed by the County of Santa Clara, the State of California, or declared by the President, exempt employees shall be paid overtime for the hours that they work as official Disaster Service Workers performing functions related to emergency response activities as follows.
Exempt employees shall be paid "emergency overtime" for each hour worked in a proclaimed/ declared emergency performing disaster response activities so long as the hour, when combined with the hours of the employee's regular work in the same work week, exceeds 40 hours. For example, if an employee actually works a total of fewer than 40 hours of combined regular work and disaster relief work in the applicable week (e.g. due to vacation or sick leave taken that same week), the employee would not be entitled to any emergency overtime. And, regardless of whether an employee worked 40, 45 or 50 hours of regular work in the same week in which the employee also worked l 0 hours of disaster relief, the employee would be entitled to 10 hours of emergency overtime.
The EOC Director, working with Human Resources shall strive to ensure overtime is equitably assigned to all qualified personnel.
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Emergency overtime shall be paid at the straight time base hourly rate of pay. The hourly rate of pay shall be calculated by dividing the exempt employee's current monthly salary by 173.33 (straight time).
This method of accounting for "Exempt Employee Disaster Overtime Pay" shall be followed in all disasters, proclaimed or declared at any level.
Emergency overtime will be paid until such time as the imminent threat to life safety, public health and/or improved property shall cease to exist. The EOC Director shall determine the termination date of emergency overtime based on emergency circumstances for a specific disaster proclamation. In any case of disaster overtime shall not be paid when the Emergency Operations Center ceases to operate.
If a request for Mutual Aid is received and an exempt employee is assigned to be a Disaster Service Worker in another jurisdiction, exempt employee compensation will be based on the Mutual Aid or Assistance for Hire agreement established for that specific event, and not subject to this policy.
7.4.1 Exempt Employee Workday
In accordance with the Fair Labor Standards Act (FLSA), exempt employees are paid on a salaried basis and are expected to work the full schedule necessary to carry out their duties, which generally means a full workday and, when required, additional hours to meet the needs of the Town. This expectation is a fundamental condition of exempt employment and is not altered by this provision.
For payroll and leave accounting purposes, if an exempt employee is absent for 2 hours or longer, their time away from work will be charged to accrued leave (vacation, sick leave, or administrative leave, as applicable). Absences of less than two hours will not require a charge to accrued leave.
This clarification is solely for internal leave accounting purposes. It shall not be construed to authorize or condone routine partial-day schedules. Supervisors retain the authority to hold employees accountable for attendance, availability, and performance expectations.
7.5 MISCELLANEOUS PAY PROVISIONS
7.5.1. Out-of-Classification Pay
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Employees who by assignment from their department head or the City Manager perform the essential functions of a position with a higher salary classification than which they are regularly employed shall receive increased compensation beginning on the first work day that the employee performs such functions; said increased compensation will provide the employee an increase ranging from five percent to ten percent of their current base pay. The specific amount of the increase will be determined based on the assignment’s length, complexity, and workload. Determinations regarding whether an employee is entitled to out-of-classification pay shall be made in the sole discretion of the City Manager. Out-of-classification assignments may be terminated by a department head or the City Manager at any time. Out of class assignments shall be limited to nine-hundred and sixty (960) hours per fiscal year in accordance with Government Code Section 20480.
7.5.2 Call Out Pay
Should a non-exempt employee be directed to report to duty by the City Manager or designee, or respond to a clear and immediate emergency during off- duty hours, they will be compensated for hours worked at twice their regular hourly rate. Employees will be compensated for a minimum of two (2) hours for each response to an authorized call out.
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7.5.3 Salary Placement/Advancement
The Compensation Plan is designed to establish a reasonable range of wages for each position of employment, and allows for adequate budgetary appropriations to be made for salary costs each fiscal year. The plan provides flexibility in wages in order to compensate for an employee’s increased competence, experience and value added to the organization. No salary advancement shall be made so as to exceed any maximum rate established in the Compensation Plan for the employee’s position.
7.5.2.1 Initial Placement
New employees or those assigned to new classifications shall be assigned a salary within the range for the classification which the City Manager, with recommendation from the appropriate department head, finds to be most appropriate according to the experience, past performance, educational accomplishments and other qualifications of the employee concerned, provided adequate budgetary
appropriations exist.
7.5.3.2 Salary Increase
Advancement within a salary range may, but will not automatically, occur at intervals of one (1) year in length effective with each satisfactory performance review. An exception may be made for newly hired or promoted employees, who shall have a salary advancement review six (6) months after their date of initial hire or promotion. The salary advancement review shall be contingent upon recommendation of the City Manager, based upon his/her review of the employee’s performance, including but not limited to review of the following factors: increased service value of an employee to the Town, as exemplified by recommendations of his/her department head, performance records, special projects accomplished, training undertaken, or other pertinent evidence.
In the event an employee is denied a salary increase based on unsatisfactory performance, the City Manager may at any time during the ensuing year approve the increase effective on the date of approval, based upon a satisfactory performance review.
Failure to receive a salary increase shall not be considered disciplinary action and is not subject to any right of appeal or grievance process.
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7.5.4 Workweek
The basic work week for full–time, non-exempt employees shall be forty (40) hours, rendered in units of eight (8) hours per day in a work-week which begins on Sunday at midnight and ends on the consecutive Saturday at 11:59 p.m. At the discretion of the City Manager, alternative work schedules may be offered.
Approval of alternative work schedules will include consideration of what best serves the Town’s residents and what schedule is most conducive to the work being performed. Counter hours will be open from Monday through Thursday from 9am – 4pm with 1 hour lunch from 12pm – 1pm.
The Town recognizes that flexible work arrangements can support both employee work-life balance and the effective delivery of public services.
Approval decisions will take into account operational needs, the nature of the employee’s duties, and the employee’s performance, and will be made in a fair and consistent manner. To ensure continuity of operations and collaboration, employees are generally expected to be in the office from Tuesday through Thursday, unless otherwise approved.
Employees may, with approval of the City Manager and their department director or supervisor, be authorized can choose to work remotely 1 day a week (Monday or Friday) and/or work a “9/80” work schedule, or work a “4/10” work schedule at the discretion of the City Manager and the department director or manager/supervisor. The City Manager may authorize an additional remote work day or grant temporary exceptions to standard schedules based on operational needs or employee circumstances. The City Manager can authorize an additional day to work from home at their sole discretion. The City Manager also has the sole discretion to grant temporary exceptions to standard work schedules to address requests from employees. An example where this could be applicable is if an employee requested to work from home more than regularly scheduled on a temporary basis to care for an ill dependent, or if an employee has a contagious illness that prevents them from being at their worksite but otherwise does not prevent them from working. In these cases, consideration will be given to employees based on their ability to effectively serve the community and meet their job responsibilities from a remote location.
Remote work approval may be modified or revoked at any time based on operational needs, performance concerns, or other legitimate business reasons. Employees approved for remote work are expected to maintain full productivity, remain accessible during regular work hours, respond promptly to email and other communications, and comply with all Town technology use and information security policies.
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begin at the midpoint on the workday the employee is regularly scheduled to work eight hours. Any employee who is on a “9/80” or a “4/10” work schedule will only receive 8 hours for holiday pay and must take the appropriate accrued leave hours to account for the additional one or two hours or work an additional one or two hours to make up the time according to the employee’s work schedule. If the employee’s 9/80 off day falls on a Friday, the employee has the option to take the opposite Friday in the pay period or take a Monday (in the same pay period) or bank 8 hours of straight comp time of 8 hours to use for another day at the discretion of the City Manager and department director.
7.5.5 Pay Day
Pay day shall be bi-weekly. In the event that this day falls on a weekend or holiday, pay day will be the preceding workday.
7.5.6 Preparation of Payroll
The payroll shall be prepared under the direction of the City Manager in accordance with the Compensation Plan. No changes in the names or salaries in the payroll shall be made unless written instruction is received from the City Manager.
7.5.7 Meal Period
A meal period up to one (1) hour, non–compensated, shall be provided all employees who work at least eight (8) hours in one day. With prior approval of the City Manager, the meal period may be reduced to forty-five (45) minutes or thirty (30) minutes. The minimum meal period shall be thirty 30 minutes. NonExempt Employees will be relieved of all duties during meal periods.
7.6 ELIGIBILITY FOR BENEFITS
Benefits are determined and set by the City Council.
7.6.1 Full Time Regular Employees
Employees holding a full-time position shall be eligible for all benefits currently authorized by the City Council except for those benefits specifically limited to management employees. All benefits shall be listed and authorized with the approval of the Compensation Plan.
7.6.2 Part-Time Regular Employees
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Employees holding a part-time position shall accrue vacation, sick leave, and holiday credits in the proportion that their average workweek in relation to that of full-time employees. To the extent possible, other benefits afforded full- time positions shall also be pro-rated.
Employees scheduled to work in positions of less than 20 hours per week shall not be provided any benefits other than those required by state or federal law.
7.6.3 Other Employees
Employees holding a temporary, provisional, emergency or other non-regular appointment or position shall not be provided any benefits other than those required by State or Federal law.
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SECTION 8
PERFORMANCE EVALUATIONS
8.1 PERFORMANCE EVALUATION PROVISIONS
All employees should receive an annual performance review on or near their anniversary date, whether or not a pay increase is being considered. The City Manager shall provide a method of reporting on individual employee performance which includes but is not limited to quantity and quality of work, ability, reliability, discipline, attendance, and other factors.
The City Manager shall prescribe forms for such performance evaluations and shall be responsible for assuring that such evaluations are adequate to provide information to both the employee and the Town for the purposes set forth in this section. An employee must have a satisfactory performance evaluation in order to be eligible for a salary increase or promotion. Deficiencies in performance by an employee may result in a decrease in salary, suspension, demotion, or dismissal.
A satisfactory performance evaluation is required in order to be eligible for a salary increase or promotion.
Performance evaluations are intended to provide constructive feedback, guide professional development, and inform decisions about compensation and advancement.
If significant performance deficiencies are identified, the supervisor may initiate corrective or disciplinary action separately, in accordance with Section 11 of these Rules.
Department heads or manager/supervisor shall rate the performance of each employee; however, the department heads may delegate the responsibility for rating the performance of specified employees in their departments to that employee's supervisor. Interim reports may be completed as necessary when changes in work performance occur. Each employee shall be informed in such reports of their strengths and weaknesses. Each performance report shall be discussed with the employee. The employee must sign the report, acknowledging that his performance evaluation has been reviewed with them. Such signature shall not necessarily mean they fully endorse the contents of said report. Neither the performance evaluation process nor the performance reports shall be subject to any grievance and/or appeal procedure.
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SECTION 9
TRANSFER, RESIGNATION, LAYOFF, REINSTATEMENT, REEMPLOYMENT
9.1 TRANSFER
No person shall be transferred to a position for which they do not possess the minimum qualifications; except that department heads may, on a temporary basis, assign employees to duties other than those prescribed in their classification specification or job description, where the need therefore results from injury or illness, vacation, or other leaves of absence, or where workloads temporarily create the need therefore and the best interest of the Town would be served. Upon notice to the City Manager, an employee may be transferred by the department head at any time from one position to another position in a comparable classification. For transfer purposes, a comparable classification is one with the same maximum salary, and requires substantially the same basic qualifications.
If the transfer involves a change of an employee from one department to another, both department heads and the City Manager must consent thereto. Transfer shall not be used to effectuate a promotion, demotion, advancement, or reduction, each of which may be accomplished only as provided in these Rules and Regulations.
Whenever possible, an employee being transferred from one position to another position in the same class or a comparable class at the same salary level shall receive five (5) working days’ notice. If the transfer requires the employee to move equipment from one location to another, the employee shall receive seven (7) working days notice when possible.
9.2 RESIGNATION
Resignation occurs when an employee tenders a written notice of their intention to resign.
A resignation becomes final when accepted by a supervisor, department head or the City Manager. Once a resignation has been accepted by the Town, it cannot be withdrawn without the approval of the City Manager. Employees intending on leaving the Town in good standing should give a minimum of two (2) weeks’ notice of their intent to resign.
9.3 JOB ABANDONMENT
An employee shall be deemed to have resigned if the employee is absent for three (3) consecutive workdays without prior authorization and/or without notification during that period of the reason for absence. If an employee in the competitive service that has passed probation is terminated for job abandonment, and that employee challenges the determination that they have abandoned their job, the sole issue for determination in any appeal shall be whether the employee was absent for (3) consecutive workdays without prior authorization and/or without notification.
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9.4 LAYOFF POLICY AND PROCEDURE
9.4.1 Statement of Intent
Whenever, in the judgment of the City Council, it becomes necessary to abolish or eliminate any position or employment, the employee holding such position or employment shall be laid off or demoted without disciplinary action and without the right of appeal or ability to bring a grievance.
9.4.2 Notification
Employees to be laid off or demoted under non-disciplinary circumstance shall be given a minimum of thirty (30) calendar days prior notice, except in exigent circumstances.
9.4.3 Order of Layoff
Employees shall be laid off in the inverse order of their seniority in their classification. Seniority is determined based upon time worked in the specific classification versus overall service to the Town. In cases where there are two or more employees in the classification from which the lay-off is to be made who have the same seniority date, such employees shall be laid off on the basis of the last evaluation rating in the class.
A lay-off out of the inverse order of seniority may be made if, upon recommendation of the department head and approval of the City Manager, it is determined that retention of special job skills are required or a less senior employee has a higher level of performance. Within each class employees shall be laid off in the following order, unless special skills are required or the leave of performance dictates otherwise: temporary, hourly, introductory, regular.
9.5 REINSTATEMENT
A regular employee who has resigned or has otherwise been separated while in good standing, may be considered for reinstatement, upon recommendation of the department head and approval of the City Manager, to their former position, if vacant, or to a vacant position in the same or a comparable classification for a period of one (1) year after resignation or separation. An employee returning to work may be required to undergo fitness for duty testing at the discretion of the City Manager.
Upon reinstatement, the employee shall be considered as though they had received an original appointment, unless other conditions are made a part of the reinstatement by the City Manager. An employee reinstated to a position in the competitive service will serve a new introductory period.
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SECTION 10
DISCIPLINARY ACTIONS
Section 10 only applies to employees in the competitive service that have passed probation.
10.1 SUSPENSION
Suspension is a temporary separation from Town service without pay for disciplinary purposes. The department head may suspend an employee without pay.
10.2 REDUCTION IN PAY
Reduction in pay is a decrease in compensation paid to an employee for a fixed period of time for disciplinary purposes. The department head may impose a reduction in pay to an employee.
10.3 DEMOTION
Demotion is the movement of an employee from one position to another which is allocated to a classification having a lower maximum rate of pay. A department head may demote an employee whose performance of their required duties is below standard, or for other disciplinary purposes. No employee shall be demoted to a position for which they does not possess the minimum qualifications.
10.4 DISMISSAL
The department head may dismiss an employee whose performance of their required duties is below standard, or for other disciplinary purposes. Such action results in an immediate termination of the employee from Town service consistent with the provisions of this section.
10.5 GROUNDS FOR DISCIPLINE
The Town's standards of conduct are established for the guidance of all employees. These standards are only a partial list of unacceptable behaviors and conduct and are not the exclusive list of grounds for discipline:
A. Fraud in securing employment or making a false statement on an application for employment;
B. Incompetence;
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C. Inefficiency or inexcusable neglect of duty;
D. Disobedience and insubordination, a failure to submit to duly appointed and acting supervision or to conform to duly established orders or directions of persons in a supervisory position;
E. Dishonesty;
F. Being under the influence of alcohol or dangerous drugs or narcotics while on duty; G. Excessive absenteeism or tardiness;
H. Inexcusable absence;
I. Abuse of sick leave, i.e., taking sick leave without a doctor's certificate when one is required, or misuse of sick leave;
J. The conviction of either a misdemeanor involving moral turpitude or any felony shall constitute grounds for dismissal of any employee. The record of conviction shall be conclusive evidence only of the fact that the conviction occurred. The department head may inquire into the circumstances surrounding the commission of the crime in order to fix the degree of discipline, or the determination if such conviction is an offense involving moral turpitude. A plea or verdict of guilty, or a conviction showing a plea of nolo contendere made to charge a felony or any offense involving moral turpitude, is deemed to be a conviction within the meaning of this Section;
K. Discourteous treatment of the public or other employees; L. Improper or unauthorized use of Town property;
M. Refusal to subscribe to any oath or affirmation which is required by law in connection with Town employment;
N. Any act of conduct, either during or outside of duty hours which is of such a nature that it causes discredit to the Town;
O. Inattention to duty, tardiness, indolence, carelessness or negligence in the care or handling of Town property;
P. Violation of the ordinances, resolutions, rules and regulations established by the employee's department;
Q. Outside employment not specifically authorized by the appointing authority in
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accordance with Town procedures;
R. Acceptance from any source of a reward, gift, or other form of remuneration in addition to regular compensation to an employee for the performance of their official duties;
S. The refusal to testify under oath before any Grand Jury having jurisdiction over any then pending cause of inquiry in which the investigation of government bribery or misconduct;
T. Improper political activity;
U. Violation of the Town’s Fraud Policy;
V. Unauthorized overtime;
W. Any similar misconduct pursuant to the Town’s discretion.
10.6 PROCEDURES FOR TAKING DISCIPLINARY ACTION
Disciplinary action shall be taken in compliance with the following procedures:
10.6.1 Notice of Intent
Whenever the Town intends to suspend an employee, demote an employee, reduce the employee in pay or dismiss the employee for disciplinary purposes, the Town shall give the employee a written notice of the intended discipline which sets forth the following:
A. The disciplinary action intended;
B. The specific charges upon which the action is based; C. A factual summary of the grounds upon which the charges are based; D. A copy of all written materials, reports, or documents upon which the discipline is based;
E. Notice of the employee's right to respond to the charges either orally or in writing to the department head;
F. The date, time and person before whom the employee may respond; G. Notice that failure to respond at the time specified shall constitute a waiver of the right to respond prior to final discipline being imposed.
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10.6.2 Response by Employee
The employee shall have the right to respond to the Town orally or in writing.
The employee shall have a right to be represented at any such meeting. Such meeting will only be permitted once and continued for no more than two (2) days. An employee must request such a meeting or submit a written response within five
(5) working days after being served with a notice of intent to discipline.
10.6.3 Final Notice
After the response or the expiration of the employee's time to respond to the notice of intent, the appropriate authority shall: (1) dismiss the notice of intent and take no disciplinary action against the employee or (2) modify the intended disciplinary action or (3) prepare and serve upon the employee a final notice of disciplinary action. The final notice of disciplinary action shall include the following:
A. The disciplinary action taken;
B. The effect of the disciplinary action taken;
C. Specific charges upon which the action is based;
D. A factual summary of the grounds upon which the charges are based; E. The written materials, reports and documents upon which the disciplinary action is based;
F. The employee's right to appeal, if any.
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SECTION 11
APPEALS HEARING AND GRIEVANCE PROCEDURES
Section 11 only applies to employees in the competitive service that have passed probation.
11.1 APPEALS HEARING PROCEDURE
The appeal procedure described herein shall apply only to cases of disciplinary suspensions, reductions in pay, demotions and dismissals affecting regular part-time and full-time employees in the competitive service. All other positions and all other forms of discipline shall not be entitled to any appeal rights.
11.1.1 If an employee is served with a final notice of disciplinary action which specifies that the employee has the right to appeal said action, the employee has the right, within five (5) working days after receipt of this notice, to request a hearing on the charges by filing a written request with the City Manager.
11.1.2 If, within the five-day (5) appeal period, the employee does not file a written request for an appeal, the discipline shall become final and shall take effect as prescribed.
11.1.3 If the City Manager receives a timely written request for an appeal, the City Manager shall, unless good cause exists otherwise, set a time for an appeal not less than twenty (20) working days, from the date of the filing of the appeal. All interested parties shall be notified in writing of the date, time, and place of the hearing at least ten (10) working days prior to the hearing.
11.1.4 The City Manager may, in their discretion, refer the appeal hearing to another hearing officer. In such case, all following references to the City Manager shall be deemed to apply to said hearing officer.
11.1.5 All hearings shall be private.
11.1.6 Five (5) working days prior to the date set for the hearing each party shall serve upon the other party and submit to the City Manager a list of all witnesses and copies of all exhibits. The employer's exhibits shall be designated by number. The employee exhibits shall be designated by alphabetical letter.
11.1.7 The hearing will not be conducted in accordance with technical rules relating to evidence and witnesses but hearings shall be conducted in a manner most conducive to determination of the truth. Any relevant evidence may be admitted if it is the type of evidence on which responsible persons are accustomed to rely
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in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper the admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient inand-of-itself to support a finding unless it would be admissible over objection in civil actions. The rules dealing with privileges shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence may be excluded. Decisions made by the City Manager shall not be invalidated by any informality in the proceedings.
11.1.8 The City Manager shall rule on the admission or exclusion of evidence.
11.1.9 Each party shall have these rights: To be represented by legal counsel or other person of their choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues; to impeach any witness regardless of which party first called them to testify; and to rebut the evidence against them. If the employee does not testify on their own behalf, they may be called and examined as if under cross-examination.
11.1.10 Oral evidence shall be taken only on oath or affirmation.
11.1.11 The hearing shall proceed in the following order, unless the City Manager for special reason, otherwise directs:
A. The party imposing discipline shall be permitted to make an opening statement.
B. The appealing party shall be permitted to make an opening statement.
C. The party imposing disciplinary action shall produce the evidence on their part.
D. The party appealing from such disciplinary action may then open their defense and offer their evidence in support thereof.
E. The parties may then, in order, respectively offer rebutting evidence only, unless the City Manager for good reason, permits them to offer evidence upon their original case.
F. Arguments shall be permitted in the discretion of the City Manager. The party with the burden of proof shall have the right to close the hearing by making the last argument.
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The City Manager shall determine relevancy, weight, and credibility of testimony and evidence, and shall base their findings on the preponderance of evidence
11.1.12 During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing upon motion of either party.
11.1.13 No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing.
11.1.14 The City Manager, prior to or during a hearing, may grant a continuance for any reason they believes to be important to their reaching a fair and proper decision.
11.1.15 The City Manager shall render their findings and decision as soon after the conclusion of the hearing as possible, and in no event, later than ten (10) working days after conducting the hearing unless otherwise stipulated by the parties. The City Manager's decision shall set forth the findings as to each of the charges and the reasons therefore. If the City Manager assigns an outside hearing officer, the hearing officer is only a fact finder and shall not make a determination regarding level of penalty or discipline.
11.1.16 The City Manager may recommend the sustaining or rejecting of any or all of the charges filed against the employee. The City Manager may recommend sustaining, rejecting, or modifying the disciplinary action invoked against the employee.
11.1.17 The decision of the City Manager is final unless appealed to the City Council. The proposed decision shall be filed with the charged employee and the department head, or manager/supervisor shall set forth the recommended effective date the employee is to be reinstated, which may be any time on or after the date the disciplinary action went into effect.
11.1.18 Either party may file a written appeal to the proposed decision, findings, and conclusions of the City Manager within ten (10) working days of the City Manager's decision with the City Clerk.
11.1.19 The party desiring to contest the decision of the City Manager may request a transcript for review within ten (10) working days of the City Manager's decision.
If the appealing party requests a transcript, that party shall pay the cost of the transcript.
11.1.20 The City Council shall determine whether, in its absolute discretion, to review such appeal within twenty (20) working days of filing of the appeal. If the Council decides to review the matter, it shall review all transcripts, exhibits, and other documents it deems pertinent. The Council may ratify, modify or reverse the City
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Manager's decision. The decision of the City Council shall be final.
11.2 GRIEVANCE PROCESS
11.2.1 A grievance is defined as a dispute arising from the application or interpretation of a specific section of these Rules and Regulations, with the exception of any disciplinary matter. Performance evaluations or any matters within the discretion of the Town are not grievable.
11.2.2 An employee must file a grievance with their immediate supervisor within fifteen (15) days after the employee knew, or reasonably should have known, that grounds for a grievance existed. The employee must exhaust all steps in this grievance process before submittal of the grievance to arbitration. Any failure by an employee to abide by the timelines described in Section 11.2 shall constitute an abandonment and waiver of the grievance.
11.2.3 The employee must submit a written grievance - containing a statement of the grievance and all pertinent facts upon which it is based; the alleged section of these Rules and Regulations which has been violated; and the remedy sought - to the employee's supervisor. The supervisor shall respond in writing to the grievance within ten (10) working days unless good cause exists for a continuance. The supervisor may meet with the employee prior to issuing a decision.
11.2.4 If the employee is dissatisfied with the supervisor's decision, an appeal to the department head must be filed with the department head within ten (10) working days of the employee's receipt of the decision. The appeal must specify, in addition to the items listed in Section 11.2.3, the specific reasons why the employee disagrees with the supervisor's decision. The department head shall respond in writing to the grievance within ten (10) working days unless good cause exists for a continuance. The department head may meet with the employee prior to issuing a decision.
11.2.5 If the employee is dissatisfied with the department head's decision, an appeal to the City Manager must be filed with the City Manager within ten (10) working days of the employee's receipt of the decision. The appeal must specify, in addition to the items listed in Section 11.2.3, the specific reasons why the employee disagrees with the department head's decision. The City Manager shall respond in writing to the grievance and may meet with the employee prior to issuing a decision.
11.2.6 If the employee is dissatisfied with the City Manager's decision, a request for advisory arbitration must be filed with the City Clerk within ten (10) working days from the employee's receipt of the decision. An arbitrator shall be selected by
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mutual agreement of the parties. If the parties are unable to mutually select an arbitrator, an arbitrator list shall be procured from the California State Mediation and Conciliation Service or the American Arbitration Association, and the arbitrator shall be selected by alternate strike following a coin toss. The arbitration shall be governed by the rules set forth in Section 11.1.5 to 11.1.15 above. The decision of the arbitrator shall be rendered within sixty (60) days, unless exigent circumstances exist, and shall be advisory to the City Council. The City Council shall review the record and decision, and affirm, deny, or modify the decision.
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SECTION 12
RECORDS AND REPORT
12.1 PERSONNEL FILES
A personnel file shall be maintained for each employee in the service of the Town.
Contained in these files shall include class title, the department to which assigned, salary, changes in employment status, disciplinary actions and such other information as may be considered pertinent.
The personnel files shall be maintained in a secure place and monitored by the City Manager or designee who shall determine access to the keys. The information in an employee’s personnel file is confidential and must be kept up to date. The employee should promptly contact the City Manager or Administrative Services Director if there are any changes to the employee’s personal data, such as home address, telephone number, emergency contacts, marital status, number of dependents or military status.
All current and former employees have the right to inspect and receive a copy of their personnel records. A request for inspection or a copy must be made to the City Manager or Administrative Services Director, in writing and submitted by the employee or the employee’s representative with written consent of the employee. Upon receipt of the request, the records will be made available within 30 calendar days.
Nothing in this policy shall be construed as extinguishing the Town’s right and/or duty under federal and California law to withhold certain documents from inspection or production under this policy.
Employees also have the right to inspect and/or obtain a copy of their payroll records. This request may be made either orally or in writing. The records will be made available within 21 calendar days of the request.
12.2 PERSONNEL ACTION FORMS
Notice of any new employment, transfer, promotion, demotion, suspension, reinstatement, resignation, retirement, salary change, reclassification, discharge, leave of absence or layoff shall be given to the City Manager or Administrative Services Director on standard forms. Approved copies of the Personnel Action Form shall be distributed to the department head, Finance Department, the employee, and the employee’s personnel file.
12.3 DESTRUCTION OF RECORDS
Records relating to persons who were never in the employment of the Town including correspondence, applications, examinations and reports will be destroyed after four (4)
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years. Records of employees will be destroyed after four years from the date of termination unless otherwise required by law.
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SECTION 13
MANAGEMENT RIGHTS
13.1 MANAGEMENT RIGHTS PROVISION
The Town retains all of its powers and authority to manage municipal services and the work force performing those services, including but not limited to, the following rights to:
● Determine and modify the organization and administration of Town government and its constituent work units;
● Determine the nature, standards, levels and mode of delivery of services to be offered to the public;
● Determine the methods, means, and numbers and kinds of personnel by which services are to be provided;
● Determine whether goods or services shall be made or provided by the Town, or shall be purchased, or contracted for;
● Direct employees, including scheduling and assigning work, work hours, and overtime;
● Establish employee performance standards and to require compliance therewith; ● Discharge, suspend, demote, reduce in pay, reprimand, withhold salary increases and benefits, or otherwise discipline employees subject to the requirements of applicable law;
● Relieve employees from duty for any legitimate reason; ● Implement rules, regulations, and directives consistent with law; ● Determine the fitness for duty of employees;
● Layoff and furlough employees;
● Conduct searches and perform investigations as needed; ● Take all necessary actions to protect the public and carry out its mission in emergencies.
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SECTION 14
MISCELLANEOUS POLICIES
14.1 ANTI-HARASSMENT, DISCRIMINATION AND RETALIATION POLICY The Town of Los Altos Hills is committed to providing an environment that is free from harassment, discrimination or retaliation of any kind, including sexual harassment and harassment or discrimination based on race or ethnicity (which includes traits historically associated with race, including but not limited to, hair texture and protective hairstyles), sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to the same), color, religion, national origin, citizenship status, ancestry, age, physical disability, mental disability, medical condition, marital status, military and veteran status, sexual orientation, gender, gender identity, gender expression, genetic information, or any other characteristic prohibited by State or Federal law. Therefore, it is important that the Town maintain an atmosphere characterized by mutual respect in order to assure fair, courteous treatment for employees and the public.
14.1.1. The Town strongly disapproves of and will not tolerate harassment, discrimination or retaliation against Town employees, volunteers, interns or applicants by elected or appointed officials, directors, managers, supervisors, coworkers, volunteers, interns, or any third parties such as person with whom the Town has a business, service or professional relationship.
14.1.2. This policy applies to all terms and conditions of employment, including, but not limited to, hiring, placement, promotion, disciplinary action, layoff, recall, transfer, leave of absence, compensation and training.
14.1.3. This policy is intended to provide protections against harassment, discrimination, and retaliation that are greater than what is required by the law.
14.1.4. Harassment, discrimination, and retaliation are considered serious acts of misconduct and will not be tolerated. Employees who violate this policy and engage in acts of harassment, discrimination, or retaliation of any type, for any duration, shall be subject to corrective action which may include severe disciplinary action, up to and including termination.
14.1.5. Retaliation against individuals who complain of any conduct prohibited by this policy or who participate in an investigation into regarding the same shall not be tolerated. Employees found to have engaged in retaliation shall be subject to corrective action which may include severe disciplinary action, up to and including termination.
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14.1.6. Definition
A. Protected Classifications: This Policy prohibits harassment or discrimination because of an individual’s protected classification. “Protected Classification” includes race or ethnicity, religion, color, sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to the same), sexual orientation, national origin, ancestry, citizenship status, marital status, pregnancy, age, medical condition, gender, gender identity, gender expression, genetic characteristics/information, and physical or mental disability. It also includes an individual’s status as a veteran or a member of the uniformed services.
B. Discrimination: This policy prohibits treating individuals differently because of the individual’s protected classification as defined in this policy.
C. Harassment may include, but is not limited to, the following types of behavior that is taken because of a person’s protected classification. A single act of harassment is considered a violation of this policy, even if it does not rise to the level of creating an unlawful hostile work environment.
Note that harassment is not limited to conduct that employer’s employees take. Under certain circumstances, harassment can also include conduct taken by those who are not employees, such as elected officials, appointed officials, and/or third parties such persons providing services under contracts, or even members of the public:
1. Speech: Such as jokes, epithets, derogatory comments or slurs, and lewd propositions on the basis of a protected classification.
This includes, without limitation, inappropriate sex-oriented comments regarding an individual’s appearance, including dress or physical features, or dress consistent with gender identification, inappropriate comments of a sexual nature, or race or ethnicityoriented stories and jokes.
2. Physical Acts: Such as assault, impeding or blocking movement, offensive touching, or physical interference with normal work or movement when directed at an individual on the basis of a protected classification. This includes inappropriate pinching, grabbing, patting, propositioning, leering, or making explicit or implied job threats or promises in return for submission to physical acts.
3. Visual Insult: Such as offensive or obscene pictures, posters,
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calendars, cartoons, drawings, gestures, displays with sexually suggestive or lewd objects, emails, or any other graphic material that denigrates or shows hostility or aversion toward an individual because of the individual’s protected characteristics. This includes, without limitation, sending inappropriate emails of a sexual nature to employees, or viewing pornography either in magazines or on the internet, displaying pictures or objects depicting nude or scantily-clad or suggestively posed men or women; circulating derogatory or obscene notes, letters, emails, memes or other literature.
4. Unwanted sexual advances: Requests for sexual favors and other acts of a sexual nature, where submission is made a term or condition of employment, where submission to or rejection of the conduct is used as the basis for employment decisions, or where the conduct is intended to or actually does unreasonably interfere with an individual’s work performance or create an intimidating, hostile or offensive working environment.
5. Retaliation: Any adverse conduct taken against an applicant, employee or contractor because they have resisted or complained in good faith about illegal harassment or discrimination is prohibited by law and by this policy. Likewise, those who participate in the complaint and investigation process are protected from retaliation. “Adverse conduct” includes but is not limited to: taking sides because an individual has reported harassment or discrimination, spreading rumors about a
complaint, shunning and avoiding an individual who reports harassment or discrimination, or real or implied threats of intimidation to prevent an individual from reporting harassment or discrimination. The following individuals are protected from retaliation: those who make good faith reports of harassment or discrimination, and those who associate with an individual who is involved in reporting harassment or discrimination or who participates in the complaint or investigation process.
14.1.7. Harassment includes any conduct which would be “unwelcome” to an individual of the recipient’s same protected classification, and which is taken because of the recipient’s protected classification. Such conduct constitutes harassment when it:
● Has the purpose or effect of creating an intimidating, hostile or offensive working environment. This threshold is lower than the standard of
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creating an unlawful hostile work environment;
● Has the purpose or effect of unreasonably interfering with an individual’s work performance; or
● Otherwise adversely affects an individual’s employment opportunities.
It is no defense that the recipient appears to have voluntarily “consented” to the conduct at issue. A recipient may not protect for many legitimate reasons, including the need to avoid being insubordinate or to avoid being ostracized.
Simply because no one has complained about a joke, gesture, picture, physical conduct or comment does not mean that the conduct is welcome. Harassment can evolve over time. Small, isolated incidents might be tolerated up to a point. The fact that no one is complaining now does not preclude anyone from complaining if the conduct is repeated in the future.
Even visual, verbal, or physical conduct between two employees who appear to welcome the conduct can constitute harassment of a third applicant, officer, official, employee or contractor who observes the conduct or learns about the conduct later. Conduct can constitute harassment even if it is not explicitly or specifically directed at an individual.
Conduct can constitute harassment in violation of this Policy even if the individual engaging in the conduct has no intention to harass. Even wellintentioned conduct can violate this Policy if conduct is directed at, or implicates a protected classification, and if an individual of the recipient’s same protected classification would find it offensive (e.g., gifts, over attention, endearing nicknames).
14.1.8. Sexual harassment Sexual harassment will not be tolerated by the Town. Federal and State guidelines provide that unwelcome sexual advances, requests for sexual favors and other verbal, visual or physical conduct of a sexual nature constitute unlawful harassment when:
● Submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment.
● The submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual; or
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● Sexual advances, requests for sexual favors or other verbal or physical conduct of a sexual nature that has the purpose or effect of unreasonably interfering with an employee’s work performance or of creating an intimidating, hostile, or offensive work environment. Sexual harassment refers to conduct that is not welcome, that is offensive, that fails to respect the rights and dignity of others, that lowers morale and that, therefore, interferes with work effectiveness.
14.1.9. Reporting Harassment, Discrimination or Retaliation Any employee who believes they has been harassed or discriminated or retaliated against should promptly report it orally or in writing to their supervisor or manager, the Administrative Services Director, or the City Manager. The Employee Complaint Form is attached and available in the Town’s Common\Employee Benefits and Forms folder. An employee is not required to report the incident(s) to a supervisor. Instead, the employee may report the harassment/discrimination to any member of management and/or directly to any member of the Administrative Services Department.
Any supervisor or manager who receives a complaint of unlawful harassment/discrimination, or who observes or otherwise learns about unlawfully harassing conduct is required to notify the Administrative Services Director. Failure to do so may result in disciplinary and/or corrective action.
14.1.10. Remedial Action
Upon receiving complaints of discrimination, harassment and/or retaliation, the Town shall undertake a fair, thorough and timely investigation of the complaint(s). Every possible effort will be made to assure the confidentiality of complaints made under this Policy. Complete confidentiality cannot occur, however, due to the need to fully investigate and the duty to take effective remedial action. An individual who is interviewed during the course of an investigation is prohibited from discussing the substance of the interview, except as otherwise directed by a supervisor or the Human Resources Manager and/or in exercising protected rights under the Meyers Milias Brown Act (MMBA). Any individual who improperly discusses the content of an investigatory interview will be subject to discipline or other appropriate sanction. Any investigation or investigation report related to the complaint shall be kept confidential except as required by law. If harassment, discrimination and/or retaliation is found to have occurred in violation of this policy, the Town shall take action to ensure or confirm that the conduct at issue is immediately stopped. The Town may take whatever measures are appropriate to ensure its workplace remains free from discrimination, harassment and/or retaliation.
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Employees found to have engaged in discrimination, harassment, and/or retaliation covered by this policy shall be subject to corrective action which may include severe disciplinary action, up to and including termination. First- time violations of this policy, depending on the severity of the conduct, may lead to termination.
Employees found to have been dishonest or uncooperative during an investigation into allegations of unlawful harassment may be subject to disciplinary action up to and including termination of employment.
Employees should feel free to report valid claims of unlawful harassment without fear of retaliation of any kind. The Town will not retaliate against or tolerate retaliation against employees for making any complaint of unlawful harassment in good faith, or against any employee for cooperating in an investigation
14.1.11. A copy of the Town’s Anti-Harassment, Discrimination and Retaliation Policy, and complaint procedures shall be provided to all employees of the Town, and to all new employees at the time of hire. The Town complies with AB1825, which states that all supervisory employees must receive harassment prevention training within 6 months of employment, and all supervisors/managers must receive re- training every 2 years. Further, the Town will also conduct training every 2 years for its employees to assist them in learning how to recognize, avoid and correct discriminatory behavior.
14.1.12. In addition to notifying the Town about unlawful harassment or retaliation, an affected employee may also direct their complaint to the California Department of Fair Employment and Housing (“DFEH”), which has the authority to conduct investigations of the facts. The deadline for filing complaints with the DFEH is one
(1) year from the date of the alleged unlawful conduct. An employee also has the right to direct their complaint to the Federal Equal Employment Opportunity Commission (EEOC).
14.1.13. Obligations of Employees All employees shall acknowledge receipt of the Town’s Anti-Harassment, Discrimination, and Retaliation Policy during the new hire orientation process, and whenever the policy is updated and re- distributed following a change in State or Federal laws. Employees are responsible for:
● Knowing the Town’s policy on Anti-Harassment, Discrimination, and Retaliation;
● Refrain from engaging in discriminatory, harassing or retaliatory behavior; ● Reporting incidents of discrimination, harassment or retaliation in a
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timely fashion;
● Cooperating in any investigation concerning allegations of discrimination, harassment or retaliation; and
● Maintaining confidentiality concerning any investigation that is conducted.
All employees are also encouraged to communicate with one another to assist co-employees to avoid harassing, discriminatory, retaliatory or otherwise offensive behavior.
14.2 OUTSIDE EMPLOYMENT
A Town employee shall not engage in any employment, enterprise, or outside activity which is in conflict with their duties, functions, responsibilities, or the department by which they is employed, nor shall they engage in any compensatory outside activity which will directly, or indirectly, contribute to the lessening of their effectiveness as a Town employee.
14.2.1 Authorization
A. Any employee wishing to engage in an occupation or outside activity for compensation shall inform the department head of such desire, providing information as to the time required and the nature of such activity, and such other information as may be required; and the department head shall determine whether or not such activity is compatible with the employee's Town employment.
B. If the department head or supervisor/manager determines such activity is compatible, they may authorize the activity in writing and shall send a copy of the authorization to the City Manager. Said authorization shall be valid only for the work and period prescribed therein.
14.2.2 Determination of Inconsistent Activities
In making a determination as to the consistency or inconsistency of outside employment, the department head or supervisor/manager shall consider, among other pertinent factors whether the employment:
A. Involves the use for private gain or advantage of Town time, facilities, equipment, and supplies, or the badge, uniform, prestige or influence of one's Town office or employment;
B. Involves receipt or acceptance by employee of any money or other
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consideration from anyone other than the Town for the performance of an act which the employee, if not performing such act, would be required or expected to render in the regular course of their Town employment or as a part of their duties as a Town employee;
C. Involves the performance of an act in other than their capacity as a Town employee which act may later be subject directly or indirectly to the control, inspection, review, audit, or enforcement by any Town employee.
D. Involves conditions or factors which would probably directly or indirectly lessen the efficiency of the employee in their regular Town employment or conditions in which there is a substantial danger of injury or illness to the employee.
14.2.3 Revocation
Authorization of outside employment is subject to revocation at any time by the City Manager or designee.
14.2.4 Disciplinary Action
Appropriate disciplinary action, in accordance with Section 10, may be taken if an employee is found in violation of this policy.
14.3 USE OF TOWN EQUIPMENT PROHIBITED
14.3.1 Town equipment shall only be used for legitimate authorized Town business. No Town–owned equipment, autos, trucks, instruments, tools, supplies, machines, or any other item which is the property of the Town shall be used by an employee for any other purpose, including but not limited to any outside employment or activity for compensation except upon prior written approval of the City Manager.
14.3.2 No employee shall allow any unauthorized person to rent, borrow, or use any Town equipment, except upon prior written approval of the City Manager.
14.3.3 Disciplinary Action
Appropriate disciplinary action, in accordance with Section 10, may be taken if an employee is found in violation of this policy.
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14.4 EMPLOYEE DRESS CODE
14.4.1 Employees of the Town are required to dress appropriately for the jobs they are performing. Therefore, the dress regulations contained in this section shall be followed.
A. All clothing must be neat, clean and in good repair.
B. Prescribed uniforms and safety equipment must be worn where applicable.
C. Footwear must be appropriate for the work environment and functions being performed.
D. Jewelry is acceptable except in areas wherein it constitutes a health or safety hazard.
E. Good personal hygiene is required.
14.4.2 Disciplinary Action
Appropriate disciplinary action, in accordance with Section 10, may be taken if an employee is found in violation of this policy.
14.5 NEPOTISM POLICY
14.5.1 No person shall be appointed or promoted to a position in any department in which such person's relative already holds a position when such employment would result in any of the following:
A. A supervisor–subordinate relationship;
B. The employees having job duties which require performance of shared duties on the same or related work assignment;
C. Both employees having the same immediate supervisor.
14.5.2 For purposes of this section, "relative" means spouse, registered domestic partner, child, step–child, parent, grandparent, grandchild, brother, sister, half– brother, half–sister, aunt, uncle, niece, nephew, parent–in–law, brother–in–law, sister–in–law or any other individual related by blood, marriage, or domestic partnership.
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14.5.3 If a Town employee marries or registers with the California Secretary of State as a domestic partner with another person employed by the Town within the same department, both employees shall be allowed to retain their respective positions provided that a supervisorial relationship does not exist at the time of marriage or registration with the California Secretary of State as domestic partners between the two positions. During the period of employment, no supervisory position shall exist between the two employees. For the purpose of this section, a supervisorial relationship shall be defined as one in which one person exercises the right to control, direct, reward or discipline another person by virtue of the duties and responsibilities assigned to their position.
14.5.4 The Town also retains the right to refuse to place both spouses or registered domestic partners in the same department, division, or facility where such has the potential for creating adverse impact on supervision, safety, security or morale or involves potential conflicts of interest.
14.5.5 Where the above circumstances exist and mandate that two spouses or registered domestic partners shall not work in a prohibited supervisory relationship, an attempt will be made to transfer one spouse or registered domestic partner to a similar classified position in another Town department.
Although the wishes of the involved parties as to which spouse or registered domestic partner is to be transferred will be given consideration by the Town, the controlling factor in determining which spouse or registered domestic partner is to be transferred shall be the positive operation and efficiency of the Town. If any such transfer results in a reduction in salary or compensation, the same shall not be considered disciplinary in nature and shall not be the subject of any form of administrative appeal.
14.5.6 If continuing employment of two spouses or registered domestic partners cannot be accommodated consistent with the Town's interest in promotion of safety, security, morale and efficiency, the Town retains sole discretion to separate one spouse or registered domestic partner from Town employ. Absent resignation by one affected spouse or registered domestic partner, the less senior of the involved spouses or registered domestic partners will be subject to separation and the same shall not constitute discipline and shall not be subject to any administrative appeal.
14.6 POLICY PROHIBITING THE USE OF DRUGS AND ALCOHOL
The intent of this policy is to eliminate the use and effects of alcohol and drugs in the workplace.
The objectives of this policy are:
● To eliminate any use of alcohol, illegal drugs, controlled substances, prescription
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drugs or any other substance which could impair an employee's ability to safely and effectively perform the functions of their job,
● To encourage employees who think they may have an alcohol or drug usage problem to voluntarily seek confidential assistance from the Employee Assistance Program, and
● To emphasize training and rehabilitation. However, even with the emphasis on rehabilitation, it must be understood that for those who demonstrate problems in job performance or those who are involved with or under the influence of drugs or alcohol on the job, disciplinary action will be taken.
14.6.1 Definitions
1. “Controlled substances” and “drugs” mean and include all substances and medications that can affect one or more mental or physical functions (e.g., coordination, reflexes, vision, mental capacity or judgment, etc.). “Controlled substances” and “drugs” also include all chemical substances or drugs listed in any controlled substances acts or regulations applicable under any federal, state or local laws, including the Federal Controlled Substances Act (21 U.S.C. § 812). They also include prescription and over-the-counter medication that can affect job performance.
2. “Illegal drugs” means any controlled substance or drug that (1) is not legally obtainable; or (2) is legally obtainable, but is not legally obtained, is not being used legally, or is not being used for the purpose(s) for which it was prescribed or intended by the manufacturer. Thus, “illegal drugs” may include even over-the-counter medications, if they are not being used for the purpose(s) for which they were intended by the manufacturer. Drugs that are considered legal under state law but remain illegal under federal law, including medicinal and/or recreational marijuana, are considered an illegal drug for purposes of this policy. Effective January 1, 2024, marijuana prohibitions shall be consistent with Section 12954 to the Government Code.
3. “Possession” includes substances physically held by a person and stored or deposited in areas the employee controls (e.g., inside purses, lunch boxes, personal automobiles, vehicles, lockers and limited-access work areas).
4. “In the workplace”- An employee is considered “In the workplace” or whenever the employee is:
a) On the Town’s property at any time;
b) On the Town’s time, even if off the Town’s premises (including any paid meal and rest periods);
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c) Representing the Town at social functions or business meetings, even if held before or after the Town’s normal business hours; d) Driving or riding as a passenger in a vehicle for which the Town reimburses expenses.
14.6.2 Scope
This policy applies to all employees of the Town when working for, or officially representing, the Town of Los Altos Hills.
This policy applies to alcohol and to all substances, drugs, or medications, legal or illegal, which could impair an employee's ability to effectively and safely perform the functions of the job.
Consistent with Government Code Section 12954, the Town does not discriminate against applicants or employees based on the applicant’s or employee’s use of cannabis off-duty and off-site or based on an employerrequired drug test that revealsnon-psychoactive cannabis metabolites, effective January 24, 2024.
14.6.3 Policy
It is the Town's policy that employees shall not use or be under the influence of alcohol or drugs, or possess alcohol or illegal drugs at any work site or Town property, while on duty, breaks or meal periods. Employees shall not sell, provide or use drugs or alcohol while on duty, except as specifically authorized by the City Manager in connection with Town functions.
The Town recognizes that certain social events may be conducted on the premises or at business functions at which alcohol may be provided. Only the moderate and limited use of alcohol is acceptable at such events. Employees are expected to remain responsible, professional, and sober at all times. At all other times, consumption of alcohol is prohibited.
Using or being under the influence of prescription or over-the-counter medication is prohibited where such use may affect the employee’s ability to safely and efficiently perform work duties. When an employee’s physician prescribes the use of prescription or over-the-counter drugs, or when an employee otherwise uses over-the-counter drugs that bear warnings about or are known by the employee to cause side effects that may affect job performance, the employee is required to ascertain whether such drugs may adversely affect the employee’s ability to safely and efficiently perform assigned duties.
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If an employee knows or if the employee’s physician determines that the prescription or over-the-counter drugs may adversely affect the employee’s ability to safely and efficiently perform assigned duties, employees are required, before commencing work, to advise their supervisor and/or Human Resources about the medication. If there is any question concerning the employee’s ability to perform safely and efficiently, the employee will be assigned to other duties, if, in the sole discretion of the Town’s management, such duties are appropriate and available, or the employee will be sent home on the Town’s sick leave, if available, or otherwise on unpaid leave. Failure to report the legal use of a drug that may pose a safety risk could result in disciplinary action, up to and including immediate termination.
Additionally, employees are forbidden from sharing with their co-workers any over-the-counter or prescribed medication that could affect job performance.
Any employee who violates these rules is subject to disciplinary action, up to and including immediate termination.
Employees are urged to seek voluntary confidential assistance through the Employee Assistance Program or any other program if they believe they may have an alcohol or drug use problem.
14.6.4 Employee Responsibilities
1. It is the employee's responsibility to demonstrate satisfactory job performance.
2. Employees shall report to work with their ability to perform job duties not impaired due to on or off duty alcohol or drug use.
3. Employees are responsible for the personal implementation of this policy to facilitate safe and effective job performance.
4. Employees shall not possess or use alcohol or impairing drugs (illegal drugs and prescription drugs without a prescription) during working hours or while subject to duty. This includes breaks and meal periods.
5. Employees shall not directly or through a third party sell or provide drugs or alcohol to any person, including any employee, while on duty or standby for duty.
6. Employees shall notify their supervisor, before beginning work, when taking any medication or drugs, prescription or non– prescription, which would
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interfere with the safe and effective performance of duties or operation of equipment.
14.6.5 Management Responsibilities and Guidelines
1. Managers and supervisors should, if possible, notify the City Manager or designee when they have reasonable suspicion to believe that an employee may be under the influence of drugs or alcohol, or have illegal drugs in their possession. The factors that may provide reasonable suspicion that an employee is under the influence of drugs or alcohol, or have illegal drugs in their possession, include but are not limited to: unusual behavior; verbal altercations; incoherent, slurred or altered speech;, odor of alcohol on the breath; red or watery eyes; dilated or constructed pupils; unsteady gait; disorientation or loss of balance; sleeping on the job; abnormal, confused, incoherent or erratic behavior; paranoia; euphoria; unsafe work habits or practices that endanger the employee, fellow employees, or the public, abnormal work performance; actual observation of the possession or use of an illegal drug. Effective January 1, 2024, marijuana screening shall be consistent with Section 12954 of the Government Code.
2. Employees reasonably believed to be under the influence of alcohol or drugs shall be prevented from engaging in further work and sent for testing. A supervisor can require a medical certification of fitness for duty regardless of the test results, before allowing the employee to return to work.
14.6.6 Disciplinary Action
This policy provides guidelines for the detection and deterrence of alcohol and drug abuse. It also outlines the responsibilities of managers, supervisors and employees. To that end, the Town will act to eliminate any use of alcohol of drugs in the workplace which increases the potential for accidents, absenteeism, substandard performance, poor employee morale or damage to Town reputation or equipment.
All persons covered by this policy should be aware that even first-time violations of this policy may be grounds for disciplinary action, up to and including, termination. In addition, the Town may, but is not required to, refer employees to counseling and treatment in lieu of or in consideration of any disciplinary action.
14.7 NON–SMOKING POLICY
Smoking is prohibited in all Town facilities and vehicles. Appropriate disciplinary action, in accordance with Section 10, may be taken if an employee is found in violation of this policy.
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14.8 MOBILE TELECOMMUNICATION DEVICES POLICY
14.8.1 General Provisions
A. Mobile telecommunications devices (mobile device) shall include but is not limited to cellular phones, two-way radios, tablets, laptops, pagers, satellite phones, personal digital assistants (PDA) or any other electronic device or equipment that is provided to Town employees that has the capability of allowing employees to participate in telecommunications activities. The Town provides employees with mobile devices on a case-by-case basis where the City Manager identifies a compelling operational or safety necessity for an employee to be accessible while not in the office.
B. The purpose of this policy is to establish procedures for the use of Townissued mobile devices in order to ensure personal accountability and responsibility, and to prevent improper use.
C. Non-exempt employees are not allowed to use mobile devices to conduct any work outside of regular work hours without the express permission of their department head.
14.8.2 Use and Accountability
A. It is the responsibility of each assigned user to comply with the procedures outlined in this policy. The assigned user is responsible for the safekeeping and use of their Town-issued mobile device. Department heads are responsible for ensuring that Town- issued mobile devices are used and cared for in accordance with this policy. The Finance Department shall periodically audit and inspect all mobile devices and their service billings.
Town-issued mobile devices are public property and their use is subject to all applicable Town, State and Federal rules and regulations.
B. The assigned user acknowledges that they have no expectation of privacy in the use of, or in the material content contained within such mobile device.
The user expressly agrees that the Town may at any time retrieve, audit and disclose, if necessary, the contents of all communications originating from or received by a Town-issued mobile device, including, but not limited to emails, voicemails and text messages.
If a mobile device is used for Town business while the user is operating a motor vehicle, the mobile device must be configured to allow hands- free use through a speaker phone, or a device, such as an earpiece, wired
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headset, or Bluetooth technology. Use of a speaker phone and these types of devices will ensure that the driver is able to keep both hands on the steering wheel at all times while operating a motor vehicle.
C. Upon resignation or termination of employment, or at any time the workrelated need for a mobile device is no longer required, or at the request of a department head, the assigned user must produce the mobile device for return and/or inspection. An assigned user who is unable to present the mobile device in good working condition within 24 hours shall bear the full cost of the replacement or repair of the Town-issued mobile device.
14.8.3 Personal Use of Town-issued Device
A. If personal use of a Town-issued device results in a charge to the Town, the Town requires the employee to reimburse the Town. In instances where personal use of a Town-issued mobile device does not incur a charge from the service provider, the employee must pay the Town a flat fee of
$30.00 per month. The flat fee shall apply when, in the determination of the City Manager, the employee’s use of the Town- issued mobile device is more than occasional. Personal use of Town- issued devices shall not violate any Town policies.
B. The employee’s reimbursement of $30.00 to the Town for private use of a Town-issued mobile device provides no entitlement to privacy.
C. The Finance Department shall designate a reimbursement procedure that minimizes administrative costs. All reimbursements shall be made payable to the Town of Los Altos Hills.
14.8.4 Allowance for Business Use of a Privately-owned Device A. Employees who use their privately-owned mobile device for official Town business may request reimbursement for actual charges incurred as a result of authorized use for Town business. It is the employee’s responsibility to receive prior authorization from their department head to use a privatelyowned mobile device for official Town business.
B. Employees who are required to report to the Town in the event of an emergency are provided a mobile device where deemed necessary by the City Manager. To reduce the Town’s carrying cost for these mobile devices, the City Manager may offer an employee the option of designating their privately-owned mobile device for use in the event of an emergency.
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C. If an employee designates their privately-owned mobile device for use in the event of an emergency, the City Manager may provide a thirty dollar and zero cents ($30.00) per month allowance to maintain the privatelyowned mobile device. Employees receiving the allowance are required to maintain an active mobile device and provide the mobile device’s contact information to the Town. The contact information will be included on the Town’s emergency contact roster.
14.8.5 Appropriate Disciplinary Action, in accordance with Section 10, may be taken if an employee is found in violation of this policy.
14.8.6 No Expectation of Privacy – Town employees shall have no expectation of privacy in their use of use of mobile communication devices including but not limited to:
cellular phones, two-way radios, tablets, laptops, pagers, satellite phones, personal digital assistants (PDA) or any other electronic device that is provided to Town employees that is provided to Town employees that has the capability of allowing employees to participate in telecommunications activities.
14.9 INFORMATION TECHNOLOGY (IT) POLICY
14.9.1 Purpose
The purpose of this policy is to ensure the proper use of the Town of Los Altos Hills (“Town”) IT Systems. This policy will supersede Section 14.9 Internet and Electronic Mail Policy in the Employee Handbook.
The Town provides computer, systems and communications equipment to those users who need it to perform their job responsibilities. The Town's electronic information and communication systems include: computers, Town applications, telephones, mobile phones, tablets, voicemail, scanners, fax machines, email, instant messaging, intranet, internet, electronic collaboration tools and storage platforms, whether on-premises or in the cloud (collectively "Information Technology Systems" or “IT Systems”).
14.9.2 Scope
As IT Systems advance and expand, it is important that Town staff continually use and manage them in a manner that is consistent with the Town's mission, vision, values, and goals. Questions or concerns regarding the provisions of this policy should be raised with the Assistant to the City Manager. This policy applies to all employees (full time, part time, contract, temporary, hourly and seasonal employees), officials, consultants, contractors, volunteers, and any other individuals who are granted access to the Town’s IT system and/or electronic
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communication
platform, equipment and resources.
14.9.3 Definitions
1. “User” – Town employee, consultant, volunteer, or any person who uses the Town's computer and/or communication equipment and their related systems and tools.
2. “IT Services” – The Assistant to the City Manager or designee.
3. “IT Managed Services Provider” – The firm contracted by the Town to provide technology services.
4. “Encryption” – Method of protecting data files from unauthorized access (e.g. create passwords for documents) above and beyond the network file security systems established by the IT division.
14.9.4 Policy
A. IT Systems and their contents, including any messages and/or information transmitted by Town staff, are the property of the Town. Nothing about or contained in the IT Systems shall or will be considered personal and/or confidential information. The Town may inspect, monitor, and/or audit all IT Systems, or any information contained in IT Systems, at any time, for any lawful purpose, without notice to any Town staff. Personal use of IT Systems should be kept to a minimum and for incidental purposes only. In the event Users use telephones, computer equipment, Internet access and e-mail for personal affairs, Users shall not expect the data to be protected from review, preservation, or deletion. Accordingly, Users shall not use the Town's IT Systems to create or transmit information they wish to keep private.
B. Unacceptable Use
1. Uses of Town’s IT Systems The Internet, electronic equipment, software, hardware, computers and associated use of electronic mail and electronic communications of all kind by employees of the Town can only be used for legitimate Town business. To this end, it is unacceptable for a user to use, submit, publish, display or transmit on the network or on any computer system any information which:
a. Violates or infringes on the rights of any other person, including the right to privacy;
b. Contains defamatory, false, abusive, obscene, pornographic, profane, sexually oriented, threatening or illegal material;
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c. Violates Town policy or departmental regulations regarding harassment and discrimination;
d. Restricts or inhibits other users from using the system or the efficiency of the computer systems;
e. Intercepts messages not addressed to the user, except as required by technical, supervisory or management personnel in order to diagnose and correct delivery problems or to fulfill other management functions;
f. Constructs e-mail so it appears to be from another party; g. Is intended to impede, damage, bring down another party’s system, or to commit any other form of electronic sabotage; h. Encourages the use of controlled substances or uses the system for the purpose of criminal intent; or
i. Uses the system for any other illegal purpose.
2. It is also unacceptable for a user to use the facilities and capabilities of the system to:
a. Conduct any non-approved business;
b. Solicit the performance of any activity that is prohibited by law; c. Transmit material, information, or software in violation of any local, State or Federal law; or
d. Make any unauthorized purchases.
3. Internet and e-mail resources are provided to users for conducting Town business. Users are required to limit personal usage of internet and email resources to activities which do not interfere with Town work or Town activities and to times which occur outside of the Town’s regular hours of operation that is from 8:00 a.m. to 12:00 p.m. and from 1:00 p.m. to 5:00 p.m., Monday through Friday. The limited permissible personal use of these resources outside of business hours must be appropriate, and any misuse or misconduct resulting from such use shall lead to discipline, up to and including termination. The use of IT Systems
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by Town staff is a privilege that may be withdrawn by the Town at any time. Town IT Systems shall not be used for any commercial promotional purpose, resulting in the opportunity for personal profit or gain excluding IRS recognized retirement accounts
C. Town staff take all reasonable and necessary efforts to prevent unauthorized persons from accessing IT Systems and prevent the introduction of electronic malware.
1. Town staff shall never leave IT Systems unattended and in a state that allows any third party to gain access to or use IT Systems without the proper authorizations.
2. As applicable, all Town IT assets that have logins shall be enabled to use Two-Factor Authentication (2FA) to reduce the possibility of unauthorized access. All Users are responsible for protecting the Town’s computer assets, computer data, and information system always.
3. All Users are responsible for taking all reasonable and necessary efforts to prevent successful phishing and scam attempts, intended to get Users to reveal financial information, system credentials or other sensitive data, to prevent unauthorized persons from accessing IT Systems and introducing electronic malware.
4. Users are required to take the KnowBe4 webinars to increase knowledge of phishing and scam attempts.
5. Users are required to immediately notify IT Services when any IT Systems equipment is missing, stolen, or lost. Missing, stolen, or lost devices also shall be reported to the director of the employee’s department immediately. Notification shall include an itemized list of documents stored on such devices.
D. Hardware device standards for IT Systems are set by IT Services and all IT Systems hardware must be procured through IT Services with department’s approval. All hardware and software shall be installed, configured, and supported by the IT Managed Services Provider as determined first by Town-wide policy and then department policy. IT Managed Services Provider shall reconfigure systems and delete unauthorized software and data as they see fit within the scope of their services.
E. Only software purchased and/or licensed to the Town and installed under the direction of the Town's IT Managed Services Provider may be used on any IT Systems. Town staff shall not duplicate or copy any software on any Town IT Systems for use on any personal devices, equipment, or systems.
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Further, enrollment in any cloud software platform (SaaS) used to conduct official Town business or store Town data, must be authorized by IT Services and any applicable Town-wide policy.
F. Town staff shall not create individual offsite storage accounts, such as, cloud storage accounts, on any platform to store Town data. Offsite data storage platforms, including, cloud storage accounts, can only be used to store Town data when specifically authorized by IT Services. Even when the use of offsite and/or cloud storage services are authorized by the IT Services, the use of any offsite and/or cloud storage services shall be governed by this policy. Any access to cloud storage accounts shall require 2FA capabilities.
G. Town-provided USB devices may be used to store non-confidential Town documents as needed for business purposes. It is recommended that USB devices be password protected. Town -provided USB devices shall only be plugged into non-Town computer systems that have been secured (e.g., computers with the latest virus protection installed.) Personal USB devices shall not be used to store confidential Town documents other than those listed on the Town 's Intranet. Use of such USB devices is strongly discouraged.
H. Access to Database and Information
1. All employees will sign the Employee Security Statement before having access to any private or confidential information or to any Town IT Systems. The original will be maintained in the employee’s personnel record.
a. New employees will sign the Statement as part of the orientation process. Human Resources Department will be responsible for this procedure.
b. Current employees will sign the Statement when access to the IT Systems or any private or confidential information is granted. Department heads are responsible for ensuring this procedure is conducted.
c. Any database access credential will have the ability to be revoked by their supervisor.
2. If an employee has a valid business need to access a database on the Town IT Systems, the following procedure will be followed:
a. The requesting employee will discuss the need with the employee’s supervisor.
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b. If the supervisor agrees that there is a need, the
employee/supervisor will complete the Request for
Employee Access form and submit it to Information Services in the Finance Department.
c. The Assistant to the City Manager will review the information provided, verify that an Employee Security Statement from the requesting employee is on file, and forward the form to the City Manager’s recommendation.
d. Upon approval by the City Manager, IT Services and the manager will grant access in the manner approved.
e. The employee’s supervisor is responsible for notifying IT Services and the manager of any restrictions or suspensions in access and for ensuring that no improper use of the access is made by the employee.
f. Access to the Town’s IT Systems is granted only for the convenience of the Town and may be revoked or suspended at any time without cause.
g. Users shall follow all established procedures for onboarding as well as off-boarding in case of voluntary or involuntary separation.
I. Vendor Supplied Computer Systems – Town computer(s) shall only be used to access Town information. No other usage from these systems (e.g., Internet, e-mail) is permissible. Vendors must be given access through IT Services to the computer systems for remote support.
J. Data Backup -- Files stored on the Town 's IT Systems shall be backed up periodically (e.g., nightly) according to the Town 's network backup policies. Users shall utilize network resources to store their data files to the fullest extent possible to protect the Town 's data resources. Users are responsible for ensuring that critical data is always stored on network servers. No Town data shall be stored on desktop computer hard drives except during network outage problems. Town data shall be copied back to network servers as soon as possible and deleted from desktop computer hard drives, laptops, or Town -provide storage devices. All backups shall be encrypted with keys that are not co-located with the stored files.
K. Electronic Communication – The Town’s IT Systems are designated to facilitate Town business and communication through the appropriate use of the electronic communications systems and electronic storage thereon. The Town values its electronic communications and electronic storage and takes measures to safeguard them from corruption and illegal use, and to protect the Town from any possible liability due to illegal use
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of electronic communications and electronic storage. All electronic communications shall be encrypted end-to-end.
L. Security – Effective security is a team effort involving the participation and support of every User who deals with information and/or information systems. Acceptable use standards form a critical component of enterprise security. Adherence to the security policy will ensure security of information systems, various tools and techniques are employed including passwords, authentication tokens, biometrics, radio-frequency identification technologies, and/or any other means of verifying an individual's identity (collectively, "Authentication Device(s).")
1. Authentication devices, if issued to or used by Users, shall be kept confidential. Users shall not share authentication devices, or the information contained in an authentication device, with third parties or other Users. Similarly, Users may not use the authentication devices of other Users, and may not enter, access, or attempt to enter or access IT Systems assigned to other Users.
2. For security and network operations purposes, authorized individuals within IT Services and IT Managed Services reserve the right to audit networks and systems as necessary to ensure compliance with this policy may at any time.
3. Users shall not place sensitive data (including but not limited to payroll data, financial records, personnel files, or other confidential information) on laptop computers and/or other portable devices such as USB devices. Users are required to use the remote access services authorized and provided by the Town (e.g., VPN) to access sensitive data rather than downloading data onto laptop hard drives or other portable storage devices.
4. Computers shall not be left unattended in a state that affords inappropriate access to records of the Town or otherwise compromises security. (e.g., lock workstation or logoff).
5. User's access to computer, communication equipment and network resources may be limited at any time due to necessary security policies to protect the Town 's network. The Town uses monitoring software and shall, at Executive Management or IT Services discretion, prevent unauthorized use.
M. Internet – All Internet Users are expected to be responsible "cybercitizens," which means knowing the tools, rules, and etiquette and behaving in conformance with this policy.
1. Material posted to Internet newsgroups or bulletin boards shall not reflect negatively on the Town and not violate any trust or
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copyright laws. Internet access shall be used only for Town business during working hours.
2. Personal use shall be limited. All other Town employment policies (e.g., Workplace Harassment Policy, social media policy) apply to Internet use.
N. No Expectation of Privacy - No Expectation of Privacy for Computer and Communication Equipment—The tools provided by the Town in accordance with this policy remain the property of the Town and are provided for the purpose of business communications. Accordingly, the Town retains the right to review Users' usage of such equipment. Users shall have no expectation of privacy for voice communications, electronic mail (e- mail) communications, internet use, messaging, and all other uses of computer and communication equipment. The Town does use software tools to restrict access to Internet sites and e-mails deemed by Executive Management to be inappropriate for the workplace. The Town utilizes tools to track Internet use by Users. Examples of when Executive Management and IT Services may need to review User usage and messages sent or received include but are not limited to:
1. Retrieving lost messages
2. Recovering from system failures or monitoring system performance
3. Complying with internal and external investigations such as grievances, workplace harassment claims, or suspected criminal acts
4. Ensuring that Town systems are being used for business purposes and polices
5. Responding to Public Records Act requests or litigation discovery No User or department may implement additional security or encryption requirements without discussing in advance with IT Services and IT Managed Services provider prior to implementation. Employees shall make the passwords or other keys to "unlock" such encryption techniques available to their supervisors upon request. At no time shall employees use their network password as an additional security password.
O. Retention
1. Retention is based on the content of the e-mail. The Town will maintain all e-mail messages determined by staff to be official records (those that relate in a substantive way to the conduct of business, or are made or retained for the purpose of preserving the informational content for future reference) for the period of time
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designated in the Town's retention schedule, based upon the content of the e-mail,) by printing and saving them in a paper subject / project file, or by saving them electronically in a subject / project folder.
2. Official records are saved and stored in subject / project file folders.
E-mail messages which are intended to be retained in the ordinary course of the Town's business are recognized as official records that need protection / retention in accordance with the California Public Records Act. Because the e-mail system is not designed for long term storage, e-mail communications which are intended to be retained as an official record (those that relate in a substantive way to the conduct of business, or those that are made or retained for the purpose of preserving the informational content for future reference) should be saved in an electronic subject / project folder on the Town’s network, or be printed out and the hard copy filed in the appropriate subject / project file so they can be accessed by other employees.
3. The Town restricts Personable Storage Table (PST) utilization used to store copies of email messages, calendar events, and other personal information.
4. E-mail submitted to, or transferred from the agency, and all internal agency communications, including staff notes related to a nonexempt California Environmental Quality Act (CEQA) action are required to be retained until Completion of the CEQA process. This does not include:
a. “every e-mail and preliminary draft.”
b. “e-mail equivalent to sticky notes, calendaring faxes, and social hallway conversations — that is, e-mails that do not provide insight into the project or the agency’s CEQA
compliance with respect to the project — are not within the scope of [Public Resources Code] Section 21167.6, subdivision (e) and need not be retained to comply with Section 21167.6.”
5. E-mail communications that DO NOT relate in a substantive way to the conduct of business, or are NOT required to be retained by law nor by the City’s Records Retention policies, and were NOT made or retained for the purpose of preserving the informational content for future reference (preliminary drafts, notes, transitory correspondence, interagency or intra-agency memoranda not retained in the ordinary course of business,) will be deleted by employees as soon as they are no longer required.
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6. The Town will auto-delete e-mails left in the following mail boxes on a routine basis:
a. In boxes (delete what remains after 2 years)
b. Sent items (delete what remains after 2 years)
c. Deleted items (delete what remains after 90 days)
P. Archiving and “Auto-Archiving” of e-mails is not permitted.
Q. Personal Devices/Personal Accounts/Text messages. The Town discourages the use of personal e-mail accounts, cell phones, or other personal devices to conduct Town business. If any of these are used to conduct Town business:
1. If the e-mail from a personal device, personal account, or text contains content that needs to be preserved, it should be either:
memorialized via another record (memorandum, letter, or e-mail) that is saved for its retention period (based upon the content of the record); or
2. Copied or forward t to a Town e-mail account, where it will be properly saved in compliance with this policy.
3. E-mails, records, and/or text messages stored on personal devices or in personal accounts relating to the conduct of Town business may be subject to the Public Records Act.
4. In the event a request for records is received, employees must locate all records responsive to such request, including any records stored on personal accounts or personal devices (unless an exemption applies.)
R. E-mails may only be sent or forwarded to appropriate persons with a need to know the information to conduct Town business.
S. For confidential emails, the word “Confidential” should be included in the subject line . Do not “interfile” e-mail or other privileged correspondence from the City Attorney’s Office with public documents (documents that are accessible to the public). These e-mails are subject to the attorneyclient and or the attorney work product privileges, and the contents should not be disclosed without first checking with the City Clerk.Litigation Holds / Other Types of Holds. E-mails subject to litigation (including a reasonable expectation of litigation,) claims, complaints, audits, records requests and/or investigations are to be preserved and normal retention periods are suspended for these emails (retention resumes after settlement or completion of the triggering hold).
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T. Privileged Attorney-Client Communication. All employees should be aware that communication and correspondences with the City Attorney’s Office, and all work products, opinions, comments, written correspondence and emails from the City Attorney’s Office are confidential and protected by the attorney-client privilege. Such privilege is only waivable by the City Council. Thus, employees shall not forward or reproduce attorney-client privileged, confidential communication correspondence to any third party outside the Town, with the exception of Town-retained consultants who are a part of a Town project team or are providing advisory or project management services to the Town. Any questions regarding whether a communication or correspondence is distributable, or whether a third party is considered a Town consultant able to receive privileged communication, should be directed to the City Attorney’s Office.
U. Separation / Transfer of Users
1. The Town’s IT Systems must be set up to immediately disable a separated employee’s access to Town e-mail and/or other technology. Human Resources and Information Technology shall ensure timely notifications of all employee separations.
2. During separation, Human Resources will ensure employees:
a. Forward any e-mails or text messages relating to Town business stored on personal devices or personal accounts to their Town e-mail account.
b. Employees are to close and/or remove any access to Town email or other technology systems from their personal devices. c. Information Technology shall ensure that the employee’s (former) supervisor has access to the former employee’s email account. d. The records stored in the e-mail account (including any archives) of an employee who separates, or transfers shall be the responsibility of that employee’s (former) supervisor. e. The former employee’s supervisor shall review the e-mails of the former employee, ensure the content of their e-mail account are preliminary drafts not retained in the ordinary course of business (i.e. the content does NOT relate in a substantive way to the conduct of the public's business,) then authorize their deletion, after appropriate records are retained for their retention period, if applicable.
f. E-mails that remain in an account (that are not saved in a subject/project file folder outside the e-mail system) will be
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routinely deleted after 2 years.
V. City Council Personal Computing Devices and Electronic Communications.
The following rules shall be applicable to all Los Altos Hills Council members:
1. To reduce the amount of paper utilized by the Town, the Town Council members shall be provided with the opportunity to utilize personal computing devices to store Town Council agenda materials and to access agenda materials during Council meetings.
For purposes of this subsection, a “personal computing device” includes iPads, mobile phones, tablets, laptops, notebooks, desktop computers and other such devices.
2. During Council meetings, noticed and open to the public pursuant to the Brown Act, the use of personal computing devices by Council Members to receive/send calls, emails, text messages or other communication is not permitted.
3. All information stored on the personal computing device may be subject to the California Public Records Act.
4. Use of any personal computing device provided by the Town to members of the Council shall comply with this policy, shall be the property of the Town, and shall be returned to the Town when the Council member is no longer serving in such capacity.
5. The primary use of personal computing devices shall be for Town related business. Incidental personal use is permissible provided the use complies with this policy.
W. Disciplinary Action
Appropriate disciplinary action, in accordance with Section 10 of the Employee Handbook may be taken if a User is found in violation of this policy. A User may also be subject to criminal or civil prosecution in accordance with other applicable State or Federal laws.
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INFORMATION SECURITY PROCEDURES and EMPLOYEE SECURITY STATEMENT Section 1 — Purpose
The Town shall establish information security procedures to which Users are expected to adhere.
These procedures are an extension of the Information Technology Use Policy and are applicable to all Users. The Town reserves the right to change the policies and procedures set forth in this policy at any time.
Users must not circumvent the policies, procedures, and safeguards implemented with the technology that protect the Town, its information, and its employees. Users must promptly report technology related security incidents or concerns to IT Services and IT Managed Services Provider
Section 2 - Policy Specifics
A. Passwords
Passwords are an important aspect of computer security. They are the frontline of protection for User accounts. Passwords are used for various applications at the Town. Some of the more common uses include network accounts, web accounts, e-mail accounts, screen saver protection, department specific applications, and voice-mail access.
A poorly chosen password can compromise the Town 's network. As such, all Users are responsible for taking the appropriate steps, as outlined below, to select and secure their passwords. The Town requires the following:
Network
Minimum length: 8 characters
Complexity: letters, numbers, and special characters
Remember last password: 5 previous passwords
Require password change: 6 months
Lockout period: 15 minutes
Never use the same password for Town accounts as for other non-Town account access (e.g., personal accounts, bank accounts, benefits, etc.).
Passwords should not be written down. No User shall share their User ID or passwords with any other Town User, non-Town User, or person. No User shall log a person in and allow that person to perform work under a User ID and password that does not belong to that individual. Authority and access to all information is based on User ID. If a person needs additional authority or access, that person, their supervisor, or their employee contact (in the case of a vendor) shall contact IT Services to set it up.
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All passwords are to be treated as sensitive and confidential. Users shall not reveal their password to anyone under any circumstances. For example, Users shall not reveal their password over the phone, in an e-mail message, in any form of writing, including to any co-worker, family member, etc.
As applicable, all accounts shall be protected by Two-Factor Authentication (2FA).
B. Use of Town IT Systems with Non-Town Computer Equipment Users can connect to the Town's network their personal computer equipment (excluding USB storage devices) to check email, calendar, and contacts, but not permitted to access other shared networks.
Any employee who wishes to attach or connect a consultant, vendor, or contract worker's personal computer equipment (including laptops) to the Town 's network shall agree to follow all the polices set forth in the Town 's IT Use Policy when attaching computer equipment to the Town 's network at any Town facility.
1. Town staff shall inform non-Town employees of the inspection requirements, and when possible, provide advance notice to IT Managed Services Provider through the Help Desk to schedule the inspection.
2. The Town shall attempt to maintain the privacy of the individual's equipment, but once attached to the Town 's network, the Town retains the right to inspect the computer equipment in accordance with the IT Policy.
Except as explicitly authorized, Users shall not allow Town documents to be stored on a hard drive or other storage media attached to a non-Town personal computer. Users shall not allow personal computer equipment that is connected to the Town 's network to be configured to allow web hosting, sharing, or Wi-Fi services.
Town network access shall not be used to download files from the Internet, including but not limited to video, music, or applications, to a personal, non-Town computer. No attempt shall be made to access data by any unauthorized means. The Town 's security policies may limit network access.
C. Vendor Remote Desktop Support
In certain circumstances Town vendors are allowed to provide remote support to specific User desktop computers. If a User allows a vendor to remotely support the desktop, computer Users shall ensure that only the vendor-specific application is open on the desktop.
D. Employee Security Statement
By signing this form, I confirm that I have read, understand, and agree to the IT Policy and
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Attachment A, and understand the consequences for non-compliance to its terms. The Town collects and receives confidential and personal information from the public to administer the various functions for which it has responsibility. The Town is committed to protecting this information from unauthorized access, use, or disclosure. I understand the following are my responsibilities:
1. As an employee of the Town, I may access confidential and personal information maintained by the Town only when necessary to accomplish the responsibilities of my employment. I shall not access or use this confidential or personal information for reasons personal to me or for personal gain.
2. I may disclose confidential or personal information maintained by the Town only to individuals who have been authorized to receive it through the appropriate procedures as governed by State law and Town ordinances and policy. In the case of confidential or personal information, a proper accounting of all disclosures must be made.
3. I understand I have a duty to promptly notify a supervisor of an indication of misuse or unauthorized disclosure of confidential or personal information by any employee of the Town.
4. I understand that computer passwords to the various Town systems are considered confidential information.
14.10 FRAUD POLICY
The Town of Los Altos Hills is committed to protecting its assets against the risk of loss or misuse. Accordingly, it is the policy of the Town to identify and promptly investigate any possibility of fraudulent or related dishonest activities against the Town and, when appropriate, to pursue legal remedies available under the law
14.10.1 General Provisions
A. Purpose - To establish policy to ensure that employees are aware of what acts are considered to be fraudulent, what the procedures are for reporting suspected fraudulent acts, and what steps are to be taken when fraud or other related dishonest activities are suspected.
B. Definitions
1. “Fraud” – Fraud and other similar irregularities include, but are not limited to:
a. Claim for reimbursement of expenses that are not job- related or authorized by the current Town Reimbursement Policies; b. Forgery or unauthorized alteration of documents (checks,
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promissory notes, time sheets, independent contractor
agreements, purchase orders, budgets, etc.);
c. Misappropriation of Town assets (funds, securities, supplies, furniture, equipment, etc.);
d. Improprieties in the handling or reporting of money
transactions;
e. Authorizing or receiving payment for goods not received or services not performed;
f. Computer-related activity involving unauthorized alteration, destruction, forgery, or manipulation of data or
misappropriation of Town-owned software;
g. Misrepresentation of information on documents;
h. Any apparent violation of Federal, State, or local laws related to dishonest activities or fraud;
i. Seeking or accepting anything of material value from those doing business with the Town including residents, vendors, consultants, contractors, lessees, applicants, and grantees.
Materiality is determined by the Town’s Conflict of Interest Code which incorporates the Political Reform act of 1974, Regulations of the Fair Political Practices Commission ( 2 Cal.Admin.Code Sections 18100 et seq. ), and any amendments to the Act or regulations.
2. “Employee” – In this context, employee refers to any individual or group of individuals who receive compensation, either full- or parttime, from the Town. The term also includes any volunteer who provides services to the Town through an official arrangement with the Town or a Town organization.
3. “Manager or Management” – In this context, manager or management refers to any administrator, manager, director, supervisor, or other individual who manages or supervises funds or other resources, including human resources.
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14.10.2 Policy
A. It is the Town’s intent to fully investigate any suspected acts of fraud, misappropriation, or other similar irregularity. An objective and impartial investigation will be conducted regardless of the position, title, length of service, or relationship with the Town of any party who might be involved in or becomes the subject of such investigation.
B. Each department of the Town is responsible for instituting and maintaining a system of internal control to provide reasonable assurance for the prevention and detection of fraud, misappropriations, and other irregularities. Management should be familiar with the types of improprieties that might occur within their area of responsibility and be alert for any indications of such conduct.
C. When informed of a suspected impropriety, neither the Town nor any person acting on behalf of the Town shall:
1. Dismiss or threaten to dismiss the employee reporting the impropriety because of said reporting;
2. Discipline, suspend, or threaten to discipline or suspend that employee because of said reporting;
3. Impose any penalty upon that employee because of said reporting; or
4. Intimidate or coerce that employee for that employee’s role in reporting the suspected impropriety.
5. This section is intended to protect employees from retaliation for reporting suspected improprieties. It shall not be construed as absolving an employee of responsibility for their own fraudulent activity; any such fraudulent activity shall be subject to disciplinary action.
D. Violations of this policy will result in discipline up to and including dismissal.
E. Upon conclusion of the investigation, the results will be reported to the City Manager.
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1. The City Manager, following review of investigation results, will take appropriate action regarding employee misconduct.
Disciplinary action may include referral of the case to the District Attorney’s Office for possible prosecution.
2. The Town will pursue every reasonable effort, including court ordered restitution, to obtain recovery of Town losses from the offender, or other appropriate sources.
14.10.3 Procedures
A. City Council and Committee/Commission appointee Responsibilities
1. If a City Councilmember or an Appointee has reason to suspect that a fraud has occurred, they shall immediately contact the City Manager.
2. The City Councilmember or appointee member shall not attempt to investigate the suspected fraud or discuss the matter with anyone other than the City Manager.
3. The alleged fraud or audit investigation shall not be discussed with the media by any person other than through the City Manager in consultation with the City Attorney and the Administrative Services Director.
B. Employee Responsibilities
1. A suspected fraudulent incident or practice observed by, or made known to, an employee shall be reported to the employee’s supervisor. If the employee believes that the supervisor may be involved in the inappropriate activity, or if there is any other reason the employee believes it would not be appropriate to report to the supervisor, the employee shall make the report directly to the next higher level of management and/or to the City Manager
2. The reporting employee shall refrain from further investigation of the incident, confrontation with the alleged violator, or further discussion of the incident with anyone, unless requested by the City Manager, City Attorney or law enforcement personnel.
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C. Management Responsibilities
1. Managers are responsible for being alert to, and reporting, fraudulent or related dishonest activities in their areas of responsibility.
2. Each manager should be familiar with the types of improprieties that might occur in their area and be alert for any indication that improper activity, misappropriation, or dishonest activity is or was in existence in their area.
3. When an improper activity is detected or suspected, or when a manager receives a report of suspected activity from an employee, the manager shall inform their immediate supervisor and/or the department head.
4. Management should not attempt to conduct individual
investigations, interviews, or interrogations. However, management is responsible for taking appropriate corrective actions to ensure adequate controls exist to prevent reoccurrence of improper actions.
5. Management should support the Town’s responsibilities and cooperate fully with other involved departments and law enforcement agencies in the detection, reporting, and investigation of criminal acts, including the prosecution of offenders.
6. Management must give full and unrestricted access to all necessary records and personnel. All Town furniture and contents, including desks and computers, are open to inspection at any time. There is no assumption of privacy.
7. In dealing with suspected dishonest or fraudulent activities, great care must be taken. Therefore, management should avoid the following:
a. Incorrect accusations.
b. Alerting suspected individuals that an investigation is underway.
c. Treating employees unfairly.
d. Making statements that could lead to claims of false
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accusations or other offenses.
8. In handling dishonest or fraudulent activities, management has the responsibility to:
a. Make no contact (unless requested) with the suspected individual to determine facts or demand restitution. Under no circumstances should there be any reference to “what you did”, “the crime”, “the fraud”, “the misappropriation”, etc.
b. Avoid discussing the case, facts, suspicions, or allegations with anyone outside the Town, unless specifically directed to do so by the City Attorney.
c. Avoid discussing the case with anyone inside the Town other than employees who have a need to know such as
the City Manager, City Attorney, or law enforcement
personnel.
d. Direct all inquiries from the suspected individual, or their representative, to the City Manager or City Attorney. All inquiries by an attorney of the suspected individual should be directed to the City Attorney. All inquiries from the media should be directed to the City Manager.
14.10.4 Investigation and Action
a. Take appropriate corrective and disciplinary action, up to and including dismissal, after consulting with the
Administrative Services Director, in conformance with the Town’s Personnel Policy Manual.
a. The department head shall inform the City Manager and the Administrative Services Director of suspected activity involving fraud or related dishonest activity.
b. The department head, Administrative Services Director, and City Manager will determine how best to investigate the suspected activity; typically either the department head or the Administrative Services Director, or a designated representative, will be assigned to conduct the investigation. c. At the conclusion of the investigation, the investigator will report to the Department Head, City Manager, and Administrative Services Director.
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d. If evidence is uncovered showing possible dishonest or fraudulent activities, the investigator will proceed as follows:
1. Advise management, if the case involves staff members, to meet with the Administrative Services Director to determine if disciplinary actions should be taken.
2. Report to the Administrative Services Director such activities in order to assess the effect of the illegal activity on the Town’s financial statements.
3. Coordinate with the Town’s Risk Manager regarding notification to insurers and filing of insurance claims.
4. Take immediate action, in consultation with the City Attorney, to prevent the theft, alteration, or destruction of evidentiary records.
Such action shall include, but is not limited to:
a. Removing the records and placing them in a secure location, or limiting access to the location where the records currently exist.
b. Preventing the individual suspected of committing the fraud from having access to the records.
5. If employees are contacted by the news media regarding an alleged fraud or audit investigation, the employee will consult with the City Manager, and the City Attorney as appropriate, before responding to a media request for information or interview.
Unless exceptional circumstances exist, a person under investigation for fraud is to be given notice in writing of essential particulars of the allegations following the conclusion of the audit. Where notice is given, the person against whom allegations are being made may submit a written explanation to the Administrative Services Director no later than seven calendar days after notice is received.
6. The Administrative Services Director will be required to make recommendations to the appropriate department for assistance in the prevention of future similar occurrences.
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14.10.5 Exceptions
There will be no exceptions to this policy unless provided and approved in writing by the City Manager and the City Attorney.
If the City Manager is suspected of fraud, that claim shall be addressed directly to the City Attorney. The City Attorney shall enforce the spirit of this policy and report to the City Council as appropriate.
14.11 DRIVER SELECTION POLICY
14.11.1 Driver Selection
The Town has adopted these guidelines for the selection and authorization of all employees who may operate any vehicle and/or equipment or their personal vehicle on behalf of the Town.
Preventing driving-related accidents and injuries begins during the hiring process.
A. Application for Employment
To ensure the Town hires qualified candidates into positions that require or may require driving, we require applicants to provide the following with the employment application:
1. Driver’s license number for the class of vehicle operated and expiration date
2. Proof of Insurance if operating personal vehicles on Town business.
B. Motor Vehicle Report
Simply having a valid driver’s license does not automatically qualify an employee or prospective employee to operate a motor vehicle on behalf of the Town:
1. Applicants - Upon verification of a valid driver’s license, the Town will obtain and review the most recent motor vehicle record (MVR) prior to granting driving authorization to determine if it is acceptable based on the criteria contained in this policy.
2. Employees– All employees who drive while working at the Town
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will be enrolled in the DMV Motor Vehicle Employer Pull Notice Program (EPN). The reports will be reviewed and evaluated by Human Resources, Risk Management and the City Manager to determine that employees remain eligible to operate Town vehicles and their personal vehicles while working on behalf of the Town. Those drivers who do not hold a Class A or B license must sign a waiver allowing their enrollment in the program.
MVR Criteria – The Town will review MVRs in accordance with the criteria contained in Section 2 of this policy. For each employee enrolled in the EPN Program, the DMV will issue an updated MVR.
The MVR is automatically issued periodically and when there is activity on a requested employee’s report. The focus will be on the frequency and severity of accidents and traffic violations over the past five years.
14.11.2. Distracted Driving (Use of cell phones and wireless devices) All employees must adhere to all Federal, State, and local rules and regulations regarding the use of cell phones and wireless devices while driving.
Employees are prohibited from using a wireless device to write, send or read text-based communications while driving.
14.11.3. Definitions
A. “Authorized Drivers”
Authorized drivers are those employees that have been identified, by verification of their driving record through the DMV, as:
1. Having an acceptable driving record in accordance with those set forth in this policy;
2. Received approval to drive Town vehicles or their own personal vehicle from the driver’s manager or supervisor; and
3. Have met any other requirements set forth by the Town.
B. “Qualified Driver”
Drivers are deemed “qualified” if they meet the following criteria:
1. Possess a valid, active (non-suspended) California driver’s license of the proper class and comply with any DMV
restrictions;
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2. Pass physical and/or vision/hearing test as required by the class of license;
3. Pass physical examination when a question of fitness to drive arises because of illness or injury;
4. Demonstrate proficiency in vehicle or equipment operation and receive direct supervisor approval; and
5. Meet U.S. Department of Transportation requirements, when applicable to the operation of vehicles or equipment.
14.11.4. Accident Reporting
In the event of a vehicle accident involving a Town vehicle, driver:
1. Call 9-1-1;
2. Notify direct supervisor;
3. Offer first aid, if trained and able;
4. Take photos of the location, road condition, damages, vehicle positions, and other pertinent and relevant objects, if safe to do so;
5. Exchange insurance and contact information with other vehicles operators or property owners; if safe to do so;
An ABAG Plan accident report, located in the glove box of all Town vehicles, should be completed within 24 hours of the incident by driver or direct supervisor and submitted the report to Human Resources, Risk Management, or the City Clerk. An accident investigation will be completed by Risk Management and/or the direct supervisor, and the driver’s status may be evaluated.
14.11.5 Vehicle Use
Employees are encouraged to use Town vehicles for all official Town business.
Unauthorized use of Town vehicles is prohibited. In the event the employee must use personal vehicles for official Town business, a mileage reimbursement will be paid based on mileage rate set by Internal Revenue Service.
Persistent use of personal vehicles will require adequate proof of insurance coverage with minimum coverage set at $150,000 per occurrence.
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14.11.6 Inspection, Maintenance, and Recordkeeping
The inspection and service of Town vehicles are the responsibility of the Public Works Department. Employees are responsible for performing a visual inspection prior to each trip to assure all safety features are fully functionally, such as lights, signals, wipers, tires, and brakes. Any deficiency must be reported to Public Works and the vehicle must be removed from service. Inspection schedules and maintenance records are maintained by Public Works and documented in a vehicle log.
14.12 VIOLENCE IN THE WORKPLACE
The Town of Los Altos Hills is committed to protecting its employees from threats of violence in the workplace. It is the Town’s policy that the Town will not tolerate violence or threats of violence made by an employee, visitor, vendors, consultants, contractors any persons appearing on Town property seeking information or assistance from the Town or any person utilizing the Town facilities or resources.
14.12.1 Purpose
A. This section provides the Town's policy, as well as the procedures to address workplace violence issues. To ensure a safe workplace, the Town has developed procedures to prevent violent incidents from occurring and to provide an orderly process for handling violent and threatening behavior in the workplace, if it occurs.
14.12.2 Policy
A. Acts of violence, whether threatened, gestured, or carried out will not be tolerated in a Town workplace. Anyone witnessing or becoming the subject or victim of such behavior shall immediately report it to the proper authorities for investigation. Minimizing the threat of violence is a duty of all employees to ensure a safe workplace. The Town resources may not be used to threaten, stalk or harass anyone at the workplace or outside the workplace. The Town treats threats coming from an abusive personal relationship as it does other forms of violence.
B. It is the responsibility of all employees to notify a supervisor, the Administrative Services Director, or the City Manager immediately of any violent act or a threat, or if a violent act or threat against themselves or any other Town employee occurs in the workplace or is directly associated with
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their employment with the Town. Employees should not place themselves in peril, nor should they attempt to intercede during an incident. Notification may be made to any of these employees as appropriate and shall be as soon as practicable. Retaliation of the threat or retaliation against a person who reports such an incident is unlawful and shall not be tolerated.
C. Town employees shall not possess the following instruments at a Town worksite or on Town property including Town parking lots, unless there is a work-related purpose and written approval has been obtained from the employee's department manager:
1. Firearms;
2. Explosives or ammunition;
3. Fixed blade knives;
4. Folding knives with blades over 3.5 inches;
5. Illegal weapons such as defined in Section 12020 of the California Penal Code
D. The Town shall take appropriate disciplinary action up to and including termination of employment against employees who violate this policy. On a case-by-case basis, or as needed, the Town will offer incident-related counseling service through the Town's Employee Assistance Program (EAP), or any other resource or program available by the Town who are the victims of violence or are subjects of threats of violence intimidation at the workplace. The Town administration will work with public safety, the courts, other authorities necessary to assure employee safety.
14.12.3 Procedure - Imminent or Actual Violent Acts
A. Employee Responsibilities: An employee who is in immediate apparent danger of a violent act an employee witnesses a violent act, or the threat of a violent act shall, whenever possible ensure the immediate safety of employees and the worksite by calling 911, and notify the department manager and Human Resources Director.
1. Place themselves in a safe location.
2. Call 911 and request the immediate response of a police officer. Be prepared to info the police dispatcher of the circumstances and exact location of where an officer needed.
3. Inform a supervisor or manager of the circumstances.
4. Refer media inquiries to the City Manager's Office.
5. Cooperate fully in any administrative or criminal investigation which
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shall be conduct within this policy and the law.
B. Supervisor/Manager Responsibilities:
1. Place themselves in a safe location.
2. If feasible, have the involved individual (s) wait in separate rooms or locations until the police take control or remove them from the premises.
3. In consultation with the City Manager, determine if it is appropriate to obtain a restraining order or other appropriate injunctive and/or other legal and/or equitable relief.
4. Reassign/relocate personnel or job duties if required.
5. Terminate any business relationship.
6. Any other action deemed by the Town to be necessary or required under the circumstances.
7. Refer media inquiries to the City Manager’s Office.
C. Procedures - Future Violence:
1. Employees who have reason to believe they, or another City employee, may be victimized by a violent act sometime in the future, at the workplace or as a direct result of their employment with the Town, shall inform their supervisor immediately so appropriate action may be taken. The supervisor shall inform their department manager.
2. Employees who have signed and filed a restraining order, temporary or permanent, against an individual due to a potential act of violence, who would be in violation of the order by coming near them at work, shall immediately supply a copy of the signed order to their supervisor and the Administrative Services Director.
D. Post-Incident Review:
1. The City Manager's Office, the Administrative Services Director and the affected department may conduct a post-incident review and use the review to evaluate this policy and procedure.
2. The Town may determine what continuing support systems are needed and oversee post incident activities.
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Classification and Compensation Plan
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CLASSIFICATION AND COMPENSATION PLAN
The purpose of the compensation plan is to outline the compensation package for eligible employees and their eligible dependents. Eligibility is determined by the Town’s Personnel Rules and Regulations unless otherwise defined in the benefit description. 112
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SECTION 100
AUTHORIZED CLASSIFICATION AND SALARIES
100.1 MONTHLY SALARY SCHEDULE BY PERMANENT EMPLOYEE CLASSIFICATION The authorized classifications and corresponding salary ranges for all Town positions shall be established by resolution of the City Council and adopted as part of the annual budget process. The official salary schedule is maintained in the Town’s Classification and Compensation Plan and may be amended by Council action at any time.
The Employee Handbook does not include the full salary schedule. Employees may refer to the most current Council-adopted budget for the official listing of classifications and salary ranges. The Human Resources Department shall make the current schedule available to all employees upon request and ensure that the most recent version is posted on the Town’s website.
100.1
FY25-26 Salary Schedule
Annual Range Hourly Range
Minimum Maximum Minimum Maximum
City Manager-Set by Contract $ 254,880 $ 254,880 salary Assistant to the City Manager $ 133,905 $ 180,773 salary Management Analyst II $ 112,650 $ 152,079 salary
Management Analyst $ 97,138 $ 131,137 $ 46.70 $ 63.05
Senior City Clerk $ 144,202 $ 194,674 salary
City Clerk $ 124,346 $ 167,866 salary
Admin Clerk/Technician $ 77,782 $ 105,005 $ 37.39 $ 50.48 Administrative Services Director $ 189,207 $ 255,429 salary Finance Director $ 179,565 $ 242,657 salary
Finance Manager $ 142,997 $ 193,046 salary
Senior Accountant $ 124,346 $ 167,866 salary
Accountant $ 102,057 $ 137,775 $ 49.07 $ 66.24
Accounting Technician $ 92,457 $ 124,818 $ 44.45 $ 60.01 Accounting Office Assistant $ 79,726 $ 107,630 $ 38.33 $ 51.74 Community Development Director $ 189,207 $ 255,429 salary Assistant Community Development
Director/Building Official
$ 155,432 $ 209,834 salary
Principal Planner $ 137,254 $ 185,293 salary
Formatted: Not Expanded by / Condensed by
Formatted: Justified, Indent: Left: 1.44", First line: 0", Right: 0.81"
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Senior Planner $ 118,354 $ 159,778 salary
Associate Planner $ 102,057 $ 137,775 $ 49.07 $ 66.24
Assistant Planner $ 88,003 $ 118,803 $ 42.31 $ 57.12
Building Official $ 124,346 $ 167,866 salary
Deputy Building Official/Plan
Examiner
$ 118,124 $ 159,462 salary
Senior Building Inspector $ 102,057 $ 137,775 $ 49.07 $ 66.24 Building Inspector $ 88,003 $ 118,803 $ 42.31 $ 57.12
Building Technician $ 81,719 $ 110,321 $ 39.29 $ 53.04
Public Works Director & City
Engineer
$ 189,207 $ 255,429 salary
Utility Engineering Manager $ 144,202 $ 194,674 salary
Senior Civil Engineer $ 130,641 $ 176,364 salary
Associate Engineer $ 112,650 $ 152,079 $ 54.16 $ 73.11
Assistant Engineer $ 97,138 $ 131,137 $ 46.70 $ 63.05
Senior Maintenance
Superintendent
$ 137,254 $ 185,293 salary
Maintenance Superintendent $ 118,354 $ 159,778 salary
Maintenance Worker III $ 79,726 $ 107,630 $ 38.33 $ 51.74 Maintenance Worker II $ 68,747 $ 92,810 $ 33.05 $ 44.62 Maintenance Worker I $ 59,281 $ 80,029 $ 28.50 $ 38.48
Community Services Manager $ 116,566 $ 157,360 salary
Community Services Supervisor $ 97,138 $ 131,137 $ 46.70 $ 63.05 Recreation Specialist $ 62,282 $ 84,080 $ 29.94 $ 40.42 Senior Public Works Inspector $117,242 $158,277 $56.37 $76.09 Public Works Inspector $ 95,030 $ 128,289 $ 45.69 $ 61.68 *See Section 1.2 for Meritorious Range
100.1 MERITORIOUS RANGE
At the City Manager’s discretion, an employee at top salary on the Salary Range may be awarded a monthly salary of up to 5% above top salary in recognition of exemplary performance. Meritorious awards may be revoked by the City Manager, at any time and without cause, and automatically expire at the end of each fiscal year. 100.2 TEMPORARY AND PART-TIME EMPLOYEE SALARIES
Temporary and Part-Time employees are paid an hourly rate equivalent to the monthly rate for permanent employees in a like classification at a salary commensurate with the employee’s experience. If there is no related permanent employee classification, the City Manager shall set a temporary rate not to exceed $25.00 per hour.
Formatted: Not Highlight
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Town of Los Altos Hills
Classification and Compensation Plan
SECTION 200
LEAVE
Administrative Leave – See Section 6.11
Bereavement Leave – See Section 6.8
Catastrophic Leave – See Section 6.3
Compensatory Time (Comp Time) – See Section 6.6
Family and Medical Leave – See Section 6.12
Holidays – See Section 6.4
Jury Duty – See Section 6.7
Leave Without Pay – See Section 6.14
Military Leave – See Section 6.9
Pregnancy Disability Leave – See Section 6.13
Sick Leave – See Section 6.2
Vacation Leave – See Section 6.5
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Classification and Compensation Plan
SECTION 300
HEALTH AND WELFARE
300.1 CAFETERIA AND FLEXIBLE BENEFIT PLAN
Effective January 1, 2024, the cafeteria plan flexible dollar amount will be as follows:
Level of coverage Monthly Flexible
Dollar Amount
Employee 1,021.41
Employee plus one 1,924.48
Employee plus two or 2,492.24
more
The flexible dollar amount may be used to select any of the PEMHCA medical plans available to the employee or any other benefits available in the Town’s Cafeteria and Flexible Benefit Plan. Additional Plan options shall include short-term disability, hospital confinement indemnity, hospital confinement sickness indemnity, hospital intensive care, accident, cancer/specified disease, lump sum critical illness, specified health event benefits and a flexible spending account option. Employees selecting a plan or benefits for which the cost is greater than the Town’s applicable flexible dollar amount shall pay the excess cost. Eligible employees with proof of insurance from another source may elect to receive an opt-out payment in-lieu-of participating in the Town’s Cafeteria Flexible Benefit Plan.
Opt-out payments are:
Level of coverage Bi-weekly opt-out
payment
Employee Only &
Employee plus
one
Employee plus two or
more
$212.31
$276.93
The Town shall adjust the monthly flexible benefit contribution on an annual basis. 300.2 DESIGNATED HEALTH CONTRIBUTION TOWARD HEALTH PREMIUM 2023Monthly PEMCHA health contribution
$ 157.00
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The Town contracts with PEMHCA for health insurance and pays the minimum monthly health contribution toward the health premium, as established by PEMHCA on an annual basis, for eligible employees, elected officials, and qualifying retirees. For eligible employees, this benefit begins on the first day of the calendar month following the employee’s hire date and terminates on the last day of the calendar month following the employee’s separation date. The PEMCHA contribution for health is per month for eligible employees, elected officials, and qualifying retirees. Retirees will be required to qualify as CalPERS annuitants and meet all statutory and legal requirements necessary to receive this benefit. The health contribution is included in the Cafeteria and Flexible Benefit fund amounts described in section above.
300.3 DENTAL PLAN
The Town contracts for dental insurance and pays the full premium for eligible employees, elected officials and their eligible dependents. This benefit begins on the first day of the calendar month following the employee’s hire date and terminates on the last day of the calendar month following the employee’s separation date. 300.4 VISION PLAN
The Town contracts for vision insurance and pays the full premium for eligible employees, elected officials, and their eligible dependents. This benefit begins on the first day of the calendar month following the employee’s hire date and terminates on the last day of the calendar month following the employee’s separation date. 300.5 EMPLOYEE WELLNESS
Permanent full-time employees are eligible for wellness benefits from two separate programs, offering a total of up to $1,075 annually. Employees must submit a request form with receipts for reimbursement. All wellness reimbursements shall be processed through payroll.
300.5.1 Wellness Allowance
This program offers up to a $575 employee wellness allowance for programs, activities, and equipment that promote good health. Guidelines for the program will be established by the City Manager. This benefit is made possible by a grant from the Town’s Workers’ Compensation insurer.
300.5.2 Year-Round Wellness Program
This program offers up to $500 annually for eligible wellness expenses. Available to all fulltime employees, the program provides reimbursement for:
● Fitness: Gym memberships, personal training, home exercise equipment, fitness apps. ● Health: Nutritional counseling, wellness coaching, weight management, smoking cessation programs.
● Mental Health: Therapy, counseling, mental health apps. ● Preventive Health: Vaccinations, health screenings, wellness educational materials.
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Town of Los Altos Hills
Classification and Compensation Plan
● Medications and Treatments: Non-insurance covered medications and treatments, including over-the-counter drugs or prescribed therapies.
Exclusions include non-wellness expenses, costs covered by other benefits, and unrelated personal items.
300.6 LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE The Town contracts for a term life insurance policy and pays the full premium for eligible employees. The benefit amount is equal to the employee’s annual salary or up to $150,000, with the exception of the City Manager’s which is set by contract. This may be a taxable benefit to the employee.
The Town also contracts for an accidental death and dismemberment insurance policy and pays the full premium for eligible employees. The benefit amount varies based on each specific condition and is set by the policy document.
300.7 LONG TERM DISABILITY INSURANCE
The Town contracts for a long term disability insurance policy and pays the full premium for eligible employees.
Employees are insured against long-term disability through third-party insurance which provides sixty percent (60%) of an employee’s monthly earnings to a maximum benefit of $5,000 per month, in the event of a disability which occurs outside of the work place.
Workers Compensation insurance provides coverage for on-the-job injuries. Coverage begins ninety (90) days following a disabling event and continues to an end date determined by the employee’s age.
300.8 WORKERS’ COMPENSATION
300.8.1 General Description
Through worker’s compensation, employees are insured against losses due to job-related illness or injury. Under this program, medical expenses are paid and, while disabled, employees are eligible for weekly compensation based on their salary.
300.8.2 Eligibility
Regular, full-time employees and part-time employees and temporary employees are eligible for this benefit. Retired employees are not eligible for this benefit.
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Town of Los Altos Hills
Classification and Compensation Plan
300.8.3 Benefit
When an employee suffers a workers’ compensation injury, the employee is eligible for receipt of two-thirds (2/3) of their salary or the amount statutorily assigned by the State of California, whichever is lower, as well as authorized health care costs, through the workers compensation claim. Employees on workers’ compensation leave may use accrued sick leave to supplement any monetary difference between their normal rate of pay and workers compensation’s temporary disability benefits.
300.8.4 Method of Administration
Workers compensation claims are administered for the Town by a third party administrator. All on-the-job injuries must be reported to the Finance Department immediately. When an employee makes a workers’ compensation claim, the claim must be submitted to the Town on the appropriate claim form, and must be accompanied with verification of the injury by a physician as well as the recommendation that the employee be absent from work for a certain length of time to allow recovery from the injury. The third party administrator makes the determination as to whether a claim is eligible for payment and which medical bills are eligible for reimbursement.
300.9 EMPLOYEE ASSISTANCE PROGRAM
300.9.1 General Description
The Employee Assistance Program is a confidential referral service for help in dealing with many kinds of personal problems that an employee may have. This program is an effective manner to deal with employee issues that, while affecting employee performance, are beyond the scope of management’s control. The services provided include counseling, crisis intervention, training and consultation.
300.9.2 Eligibility
Regular, full time employees and part time employees who regularly work twenty (20) hours per week or more are eligible for this benefit. Part time employees who work less than twenty (20) hours per week and temporary and retired employees are not eligible for this benefit.
300.9.3 Benefit
The Town provides an Employee Assistance Program through Magellan Behavioral Health, Inc. (Magellan). The program offers assessment, counseling, 24-hour crisis intervention, child/elder care services, legal and financial resources, management consultation, supervisor training and employee workshops.
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Town of Los Altos Hills
Classification and Compensation Plan
300.9.4 Method of Administration
The cost of the Employee Assistance Plan is paid by the Town. Employees may confidentially use the services of Magellan without prior approval of a Town supervisor or City Manager.
300.10 UNIFORMS AND SAFETY GEAR
Town employees who work in the field may be provided uniforms and safety gear necessary to protect the employee’s well-being and establish a consistent Town image.
The Town’s annual budget includes a line item for this benefit and purchases must be authorized by the employee’s department head, under the general guidance of the City Manager. Uniforms and safety gear are replaced as deemed necessary by the department head.
The Town will provide a reimbursement of up to $250 (City Hall staff) or $350 (Maintenance Crews) annually for the purchase of safety shoes. Employees may purchase these safety shoes at the vendor of their choosing and submit receipts to the Finance Department for reimbursement.
121
Town of Los Altos Hills
Classification and Compensation Plan
SECTION 400
OTHER BENEFITS
400.1 DEFERRED COMPENSATION
400.1.1 General Description
Town employees are eligible to participate in approved deferred compensation plans through payroll deductions. These deductions are forwarded to the appropriate institution by the Town at the time that each payroll is issued. 400.1.2 Eligibility
Regular, full-time employees and part-time employees who regularly work twenty (20) hours per week or more are eligible for this benefit. Part-time employees who work less than twenty (20) hours per week and temporary and retired employees are not eligible for this benefit.
400.1.3 Benefit
The company that is approved by the Town to administer this benefit is the ICMA Retirement Trust Corporation. Deferred compensation is self-funded with no contribution from the Town unless otherwise stipulated by contract. Employees who elect to participate have an amount deducted from each paycheck deposited directly into their deferred compensation account. The amount of the maximum annual contribution is determined by Federal and State regulations. 400.1.4 Method of Administration
Deferred compensation transactions are handled as payroll deductions.
Deductions from an employee’s gross pay are deposited in the appropriate account and are itemized on the employee’s check stub. Taxable income at year end is based on an employee’s post-deduction gross pay. Federal and State income taxes are not calculated or withheld on amounts deposited in employee deferred compensation accounts, as they are deferred until withdrawals from the accounts begin (usually upon retirement).
401(a) Plan-Defined Contribution
The Town will contribute up to 4% of the employee’s annual salary with a cap of the PEPRA salary maximum and based on the employee enrolled in the 457 Plan (flexible deferred compensation plan).
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Town of Los Altos Hills
Classification and Compensation Plan
400.2 CREDIT UNION
All Town employees are eligible to become members of the Santa Clara County Employee's Credit Union. The advantages of the programs offered to member employees are typical of credit union membership, at no cost to the Town.
400.3 AUTOMOBILE ALLOWANCE
400.3.1 General Description
The automobile allowance provides reimbursement for the maintenance and use of a management employee’s personal vehicle for Town business. This benefit is in lieu of a Town provided vehicle.
400.3.2 Eligibility
All management employees as defined by Section 5.2 are eligible for this benefit.
400.3.3 Benefit
Management employees will receive a monthly allowance of two hundred fifty dollars and zero cents ($250.00) per calendar month as compensation for the use of their personal vehicle while conducting Town business. The City Manager’s automobile allowance is set by contract.
400.3.4 Method of Administration
This benefit is paid each pay period worked during the calendar year at the rate of two hundred fifty dollars and zero cents ($250.00) per calendar month. 400.4 PARKS & RECREATION PROGRAM REGISTRATION FEES
The Town’s non-resident surcharge for parks and recreation programs shall be waived for employees and their dependents. If the program reaches capacity, a non-resident employee or dependent will be required to pay the non-resident surcharge. 400.5 TUITION REIMBURSEMENT FOR DEGREE PROGRAMS
Full-time, permanent employees are eligible for tuition reimbursement for courses taken toward undergraduate and graduate degree programs, provided the courses are relevant to their job or career development within the Town. Employees must obtain written approval from both the City Manager and Department Head before enrolling in any degree program. This approval must be requested using the Tuition Reimbursement Request Form, which should include a course description and estimated costs.
123
Town of Los Altos Hills
Classification and Compensation Plan
The maximum reimbursement per unit is capped at the per-unit tuition rate at California State University, as detailed at CSU Tuition and Fees. Only tuition is covered under this policy; other expenses related to the program, such as textbooks, materials, and fees, are not covered.
Reimbursement is processed after course completion and upon satisfactory completion with a grade of “B” higher, or a GPA of 3.00 or higher. Employees must submit itemized receipts and official transcripts showing final grades. Claims are processed within 30 days of receiving all required documentation.
Employees who receive tuition reimbursement are required to remain employed with the Town throughout the duration of their degree program and for a minimum of one year following the completion of their degree. If an employee voluntarily leaves the Town before fulfilling this commitment, they may be required to repay a prorated portion of the reimbursement received.
Any exceptions to this policy will be considered on a case-by-case basis and require additional approval, provided that the total reimbursement does not exceed the maximum amount stipulated by this policy.
400.6 EDUCATION REIMBURSEMENT
Full-time, permanent employees are eligible for reimbursement of costs related to various educational activities, including online courses, professional certifications, workshops, and other non-degree programs, provided they are relevant to their job or career development within the Town. Employees must obtain written approval from both the City Manager and Department Head.
The total reimbursement for educational expenses, including required materials such as textbooks, workbooks, online course access fees, software, and hardware necessary for course completion, is capped at $1,500 per fiscal year. This cap applies to the aggregate of all eligible expenses, including courses, certifications, and materials. Reimbursement is not available for optional or non-required materials.
To receive reimbursement, employees must submit receipts and proof of payment for all educational expenses. Claims are processed within 30 days of receiving all required documentation. Non-reimbursable expenses include optional materials or services not directly required for course completion.
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SECTION 500
RETIREMENT
500.1 PENSION – TIER I
500.1.1 General Description
The Town’s retirement program provides employees with benefits through their retirement years in an amount which is based upon years of service, age of employee at the beginning of their retirement and the three highest years’ compensation during their tenure.
500.1.2 Eligibility
All regular, full-time and part-time employees who work twenty (20) hours per week or more hired prior to August 31, 2011 are members of the California Public Employees Retirement System (CalPERS) and included in Tier I. In order to be eligible any such employee must meet all applicable CalPERS eligibility rules.
500.1.3 Benefit
The Town contributes an employer share of retirement contribution based on the gross salary for each eligible employee. The employee’s share is equal to 7% of their yearly gross salary and is deducted from the employee’s earnings on a pre-tax basis for this retirement benefit. Employees of the Town eligible for this benefit do not pay into the Social Security system.
The Town’s contract with CalPERS provides service retirement benefits under the “2% at 55” formula. The formula uses a multiplier of x %, times the number of years of service, to determine retirement benefits at a given age. For example, under the 2% at 55 formula, a retiree with 10 years of service retiring at age 55 would receive an annual retirement benefit of 20% of their final (adjusted) annual salary. The earliest retirement date is age 50, with at least 5 years of service. The table below shows the “benefit factor”, or multiplier for the 2% at 55 plan.
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2% @ 55
Retirement
Age
Percent
Per
Year
X
50 1.426
51 1.522
52 1.628
2% @ 55
Retirement
Age
Percent
Per
Year
53 1.742
54 1.866
55 2.000
56 2.052
57 2.104
58 2.156
59 2.210
60 2.262
61 2.314
62 2.366
63 and over 2.418
500.1.4 Method of Administration
The Finance Department makes the appropriate payment to CalPERS with each payroll cycle. CalPERS keeps detailed records of each employees account and sends annual statements to all employees at the end of the fiscal year. Once an employee retires, CalPERS administers the retirement benefit to the former employee. CalPERS offers many retirement planning workshops throughout the year to assist employees with retirement planning decisions. Details regarding the accrual and disbursement of retirement benefits can be discussed directly with a CalPERS representative.
500.2 PENSION – TIER II
500.2.1 General Description
The Town’s retirement program provides employees with benefits through their
126
retirement years in an amount which is based upon years of service, age of employee at the beginning of their retirement and the three highest years’ compensation during their tenure.
500.2.2 Eligibility
All regular, full-time and part-time employees who work twenty (20) hours per week or more hired after August 31, 2011 are members of the California Public Employees Retirement System (CalPERS) and included in Tier II. In order to be eligible any such employee must meet all applicable CalPERS eligibility rules. 500.2.3 Benefit
The Town contributes an employer share of retirement contribution based on the gross salary for each eligible employee. The employee’s share is equal to 7% of their yearly gross salary and is deducted from the employee’s earnings on a pre-tax basis for this retirement benefit. Employees of the Town eligible for this benefit do not pay into the Social Security system.
The Town’s contract with CalPERS provides service retirement benefits under the “2% at 60” formula. The formula uses a multiplier of x %, times the number of years of service, to determine retirement benefits at a given age. For example, under the 2% at 60 formula, a retiree with 10 years of service retiring at age 60 would receive an annual retirement benefit of 20% of their final (adjusted) annual salary. The earliest retirement date is age 50, with at least 5 years of service. The table below shows the “benefit factor”, or multiplier for the 2% at 60 plan.
2% @ 60
Retirement
Age
Percent
Per
Year
X
50 1.092
51 1.156
52 1.224
53 1.296
54 1.376
55 1.460
56 1.552
57 1.650
58 1.758
59 1.874
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60 2.000
61 2.134
62 2.272
63 and over 2.418
500.2.4 Method of Administration
The Finance Department makes the appropriate payment to CalPERS with each payroll cycle. CalPERS keeps detailed records of each employee’s account and sends annual statements to all employees at the end of the fiscal year. Once an employee retires, CalPERS administers the retirement benefit to the former employee. CalPERS offers many retirement planning workshops throughout the year to assist employees with retirement planning decisions. Details regarding the accrual and disbursement of retirement benefits can be discussed directly with a CalPERS representative.
500.3 PENSION – TIER III
500.3.1 General Description
The Town’s retirement program provides employees with benefits through their retirement years in an amount which is based upon years of service, age of employee at the beginning of their retirement and the three highest years’ compensation during their tenure.
500.3.2 Eligibility
All regular, full-time and part-time employees who work twenty (20) hours per week or more joined California Public Employees Retirement System (CalPERS) prior to January 1, 2013 who, on or after January 1, 2013 is hired by a different CALPERS employer following a break in service of more than six months; or a new hire who joined on or after January 1, 2013 and who has no prior membership in another California public retirement system; or a new hire who joins CalPERS for the first time on or after January 1, 2013, and who was a member of another California public retirement system prior to that date, but who is not subject to reciprocity upon joining CalPERS. In order to be eligible any such employee must meet all applicable CalPERS eligibility rules. 500.3.3 Benefit
The Town contributes an employer share of retirement contribution based on the gross salary for each eligible employee. The employee’s contribution rate will be at least fifty (50) percent of the total normal cost rate of their defined benefit plan of their yearly gross salary and is deducted from the employee’s earnings on a pre-tax basis for this retirement benefit. Employees of the Town eligible for this benefit do not pay into the Social Security system
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The Town’s contract with CalPERS provides service retirement benefits under the “2% at 62” formula. The formula uses a multiplier of x %, times the number of years of service, to determine retirement benefits at a given age. For example, under the 2% at 62 formula, a retiree with 10 years of service retiring at age 62 would receive an annual retirement benefit of 20% of their final (adjusted) annual salary. The earliest retirement date is age 52, with at least 5 years of service. The table below shows the “benefit factor”, or multiplier for the 2% at 62 plan.
2% @ 62
Retirement
Age
Percent
Per
Year
X
50 0.842
51 0.917
52 1.000
53 1.100
54 1.200
55 1.300
56 1.400
57 1.500
58 1.600
59 1.700
60 1.800
61 1.900
62 2.000
63 2.100
64 2.200
65 2.300
66 2.400
67 or older 2.500
500.4 RETIREE MEDICAL REIMBURSEMENT
500.4.1 Town Retirees and Employees Receiving Town Medical Benefits as of October 11, 2007
Employees of the Town who were employed by the Town and receiving Town medical benefits as of October 11, 2007 are eligible for this benefit upon retirement from the Town. Additionally, retirees of the Town as of October 11, 2007 are eligible for this benefit. These eligible retirees shall receive contributions through their retirement years towards medical benefits in an
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amount that is equal to what active employees receive in the cafeteria plan. An individual must also qualify as a CalPERS annuitant in order to receive this benefit. Anyone who was not a Town retiree or employed by the Town and receiving Town medical benefits as of October 11, 2007, will not receive this benefit.
500.4.2 Retirees That Were Not Employed by the Town and Receiving Town Medical Benefits Before October 12, 2007.
Any Town employee hired or first receiving medical benefits on or after October 12, 2007 shall only be eligible to potentially receive a retiree medical contribution equal to the PEMHCA minimum health contribution amount described in Section
3.2. Retirees will be required to qualify as CalPERS annuitants and meet all statutory and legal requirements necessary to receive such a benefit.
1. Retiree Health for the Tier 2 employees hired after October 11, 2007, until the age 65 years of age with the following qualifiers:
Employee must work with the Town for at least 5 years and must retire from the Town. The benefit will be effective at age 60 at Kaiser Employee only subscriber rate. The vesting schedule (see below) would be implemented based on CalPERS service and would determine the Town’s contribution towards the retiree’s health premium.
10 years 50%
11-12 years 60%
13-14 years 70%
15-17 years 85%
18-20 years 90%
20 + years 100%
500.4.3 Method of Reimbursement
The Town shall reimburse retirees the amount deducted from their monthly pension provided by CalPERS up to the maximum retiree medical contribution they are entitled to receive pursuant to this section.
500.4.4 Method of Administration
The Town will issue reimbursements to eligible retirees in the month of January and July - following January 1 and July 1 of each year an estimated six month premium deduction from the retiree’s pension. If the estimate is less than the actual deduction, the Town will reimburse the retiree the difference upon receipt
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of written request for reimbursement from the retiree. If the estimate is more than the actual deduction, the Town will deduct the overpayment from the next scheduled reimbursement. All correspondence from the retiree to the Town shall be addressed:
City Manager
Town of Los Altos Hills 26379 Fremont Road
Los Altos Hills, CA 94022
– o0O0o –
End of Employee Handbook
5438994.1
ITEM 5J
TOWN OF LOS ALTOS HILLS
MEMORANDUM
DATE:
FROM:
APPROVED:
RE:
September 18, 2025
Arika Birdsong-Miller, City Clerk ABM
Peter Pirnejad, City Manager PP
Appointment of the Cal Cities 2025 Voting Delegate Alternate At its meeting on March 20, 2025, the City Council appointed Council Member Linda Swan as the Town’s Voting Delegate for the 2025 Cal Cities Annual Conference. In order to complete the required designation, the Town also needs to appoint an Alternate Voting Delegate.
Staff recommends appointing Council Member Stanley Mok to serve as the Town’s Alternate Voting Delegate for the 2025 Cal Cities Annual Conference.
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org
DATE: Wednesday, July 16, 2025
TO: Mayors, Council Members, City Clerks, and City Managers RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Oct. 8-10, 2025 Long Beach Convention Center
Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.
Taking place on Oct. 10, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.
To cast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.
Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.
Following council action, please submit your city’s delegates through the online submission portal by Wed., Sept. 24. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form.
Submitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates.
Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration is open on the Cal Cities website.
Council Action Advised by September 24, 2025
For a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.
Please view Cal Cities’ event and meeting policy in advance of the conference.
Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official.
Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.
The voting delegate desk, located in the conference registration area of the Long Beach Convention Center in Long Beach, will be open at the following times: Wednesday, Oct. 8, 8:00 a.m.-6:00 p.m. and Thursday, Oct. 9, 7:30 a.m.-4:00 p.m. On Friday, Oct. 10, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting.
The voting procedures that will be used at the conference are attached to this memo.
Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.
Once again, thank you for submitting your voting delegate and alternates by Wednesday, Sept. 24. If you have questions, please contact Zach Seals at [email protected].
Attachments:
• General Assembly Voting Guidelines
• Information Sheet: Cal Cities Resolutions and the General Assembly
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org General Assembly Voting Guidelines
1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.
2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.
3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.
4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.
5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.
6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.
7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.
Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.
How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.
The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.
The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.
Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.
Recommendations are forwarded
to the Resolutions Committee.
Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.
Voting delegates
are appointed by each
member city; every city
has one voting delegate.
The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.
Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.
Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.
During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.
Cal Cities policy
development is a memberinformed process,
grounded in the voices and
experiences of city officials
throughout the state.
For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.
General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.2
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f).
TOWN OF LOS ALTOS HILLS September 18, 2025
Staff Report to the City Council
SUBJECT: RESOLUTION ADOPTING THE 2024 PATHWAY FEE NEXUS STUDY AND THE PROPOSED FY26 PATHWAY IMPACT FEE UPDATE IN
ACCORDANCE WITH THE MITIGATION FEE ACT; AND WAIVER OF
FIRST READING AND INTRODUCTION OF AN ORDINANCE AMENDING ARTICLE 6 OF CHAPTER 2, TITLE 10 OF THE LOS ALTOS HILLS
MUNICIPAL CODE FOR THE PATHWAY IMPACT FEE UPDATE
FROM: WooJae Kim, Public Works Director
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council:
1. Approve a resolution (Attachment 1) adopting the 2024 Pathway Fee Nexus Study and the proposed FY26 Pathway Impact Fee update in accordance with the Mitigation Fee Act; and
2. Conduct a public hearing, waive the first reading, and introduce an ordinance (Attachment 2) amending Article 6 of Chapter 2, Title 10 of the Los Altos Hills Municipal Code Modifying Sections 10-2.606 Payment of pathway fees and/or dedication of pathway easements and 10-2.608 – Pathway Fee.
BACKGROUND:
The Town established a Master Path Plan in 1981, which is part of the Town's Pathway Element of the General Plan. Additionally, the Town enacted a pathway fee in March 1996 through Ordinance 381 (Attachment 3). The ordinance established a Pathway Fund and revised the requirements for pathway easement dedications, pathway construction, and pathway fees. Over time, the Pathway fees have increased based on the increasing costs of pathway construction.
The current pathway development impact fee was established in 2019 through Council adoption of Resolution 62-19 (Attachment 4) and Ordinance 584 (Attachment 5). The Town contracted Matrix Consulting Group to evaluate the nexus and methodologies for the Town’s assessment of fees for Pathways. The current pathway impact fee consists of flat fees for new residences and major additions (900 square feet or more), including barns and stables. The option for developers to install pathways was limited to subdivision projects. The table below reflects the current Pathway Impact Fee schedule:
Current Pathway Impact Fee
New Single-Family Residence $10,943
Accessory Dwelling Unit (900 sq. ft. or larger)* $3,826 ITEM 7A Staff Report
Staff Report to City Council Page 2
FY26 Pathway Impact Fee Update
September 18, 2025
Additions (900 sq. ft. or larger) $3,826
Equestrian Barns (900 sq. ft. or larger) $3,826
*Pathway fee waived for Accessory Dwelling Units for the House Element Planning Period 2023-2031.
Moreover, the Town’s Municipal Code Section 9-1.1112 currently provides that for subdivisions, developers are required to “dedicate pathway easements, pay pathway fees and/or construct paths to Town standards when such dedication, payments, and/or construction requirements are a condition of approval of the tentative subdivision or parcel map, consistent with the Pathway Element of the General Plan and the Master Path Plan.” Any lot in the subdivision that does not contain a path shall be assessed a pathway fee.
The Housing Element 5th Cycle (2016-2023) and 6th Cycle (2023-2031) included programs to waive the Pathway Impact fee for Accessory Dwelling Units (ADUs). With the approval of Resolution No. 77-23 (Attachment 6) approved on August 17, 2023, the City Council formally waived the fee for ADUs through 2031 with the adoption of the FY 2023-24 Planning, Building, and Engineering Fee Schedules.
A 2022/2023 audit by the Pathways Committee indicated that approximately 36 miles of Master Path Plan segments are yet to be installed. On May 17, 2023, under the Council-initiated item, Council directed staff to initiate a Pathway Impact Fee update as recommended by the Pathways Committee, with the understanding that pathway construction costs have significantly increased and the current pathway fee structure is insufficient to sustain pathway construction needs for the Town.
DISCUSSION:
2024 Pathway Fee Nexus Study
On October 30, 2023, the City Manager entered into an agreement with Matrix Consulting Group (Matrix) for the Pathways Fee Nexus Study. Through the nexus study, different options to assess the pathway fee were evaluated. The options included development impact fee, in-lieu fee, and benefit assessment district. The focus of this nexus study was to update the current pathway development impact fee as directed by the City Council.
To establish the development impact fee, the Town’s pathway construction cost data from the past two years were collected to determine an average cost per mile of pathways, which was tabulated at around $1,060,659 per mile. With a total of 85.88 miles of pathways in the Town, the estimated pathway system cost equates to $91,089,362. That number was divided by the total number of parcels or households in the Town (3,151 parcels) for an average pathway cost per household of $28,908. This number is further divided by the average size of residential development in the Town (5,269 average square footage per household based on two-year permitting data average for projects greater than 900 square feet) to come up with a $5.49 per square foot of development impact fee for pathways.
Staff Report to City Council Page 3
FY26 Pathway Impact Fee Update
September 18, 2025
The table below is a general breakdown of the Pathway Development Impact Fee methodology, which is further detailed in the 2024 Pathway Fee Nexus Study (Attachment 7):
Proposed Cost Components Amount
Estimated Cost of Construction for 1 mile of Pathways $1,060,659 Estimated Current Pathway Miles 85.88
Total Estimated Pathway System Cost $91,089,362
Estimated Town Households 3,151
Estimated Pathway Cost per Household $28,908
Average Development Square Footage per Household 5,269
Pathway Cost per Development Square Footage $5.49
Table 1. Source: Matrix Consulting Group
Due to a new nexus analysis requirement per Assembly Bill (AB) 602, residential impact fees should be based on the area of development whenever possible. As a result, the Pathway fee is proposed to shift from a flat fee for residences and additions, $10,943 and $3,826, respectively, to a cost per square foot of new development. The table below outlines the anticipated Pathway Development Impact Fees developers can expect to pay under the new fee methodology:
Proposed Pathway Impact Fee Current Fee Proposed Fee
Fee per Square Footage of Addition Not Applicable $5.49/sq. ft.
New Single-Family Residence (6,000 sq. ft.) $10,943 $32,940 Additions (900 sq ft, including barns) $3,826 $4,941
Table 2. Source: Staff
On June 3 and October 7, 2024, a draft of the Pathway Fee Nexus Study was presented to the Finance & Investment Committee (FIC). The study was presented to the Pathways Committee on June 24, 2024. Both the Finance & Investment and Pathways Committees approved the methodology of the nexus study and recommended it for Council approval. The minutes of the June 3, 2024 FIC meeting are included as Attachment 8, and the October 7, 2024 FIC meeting minutes are included as Attachment 9. The June 24, 2024 Pathways Committee meeting minutes are not available, but the Zoom video recording of the meeting can be viewed at:
https://losaltoshillsca.portal.civicclerk.com/event/3334/media.
On November 21, 2024, staff presented the Pathway Fee Nexus Study to the City Council as an informational item and heard no objections to moving forward with the pathway development impact fee update.
March 12, 2025, Planning Commission Public Hearing
In an effort to align Town policies and regulations in the General Plan Pathway Element and Zoning and Site Development Ordinance with the current pathway impact fee, staff took the General Plan and Ordinance Amendments to the Planning Commission as a public hearing item
Staff Report to City Council Page 4
FY26 Pathway Impact Fee Update
September 18, 2025
on March 12, 2025. The amendments taken to the Planning Commission at that previous meeting can be reviewed on the Town’s website at
https://losaltoshillsca.portal.civicclerk.com/event/3875/files/report/323.
The Pathway Element and the Ordinance currently reference assessing pathway fees/requirements on ADUs and for developers to build pathways. Municipal Code Section § 10-2.606 Payment of pathway fees and/or dedication of pathway easements and Section §10-2.608 – Pathway Fee refer to pathway requirements for ADUs. Furthermore, it has been the Town’s practice since 2020 to require developers to dedicate pathway easements and/or pay a pathway impact fee, rather than requiring developers to install pathways. Policy 4.4 of the Pathways Element currently states, “where pathway installation is required for a project, construction of the path shall occur concurrent with development of the project.”
The Planning Commission opposed the General Plan and Zoning and Site Development Ordinance amendments proposed by staff. Commissioners recommended and requested that alternate fee structures be considered by Council, such as reverting to an in-lieu fee system to provide developers opportunities to build the required pathways per the Master Path Plan. The March 12, 2025, Planning Commission Meeting minutes are included as Attachment 10. A summary of recommendations and requests from the Planning Commission at the March 12th Public Hearing and corresponding staff assessments is provided below:
Planning Commission
Recommendations & Requests Staff Assessments and Findings Allow owners/developers to build
required pathways on project
sites, in-lieu of paying the
pathway impact fee.
Providing owners/developers in-lieu option may leave the Town with challenging pathway segments to be built with a larger delta between the rate of fund collection and the design/construction costs of the more costly segments. It would also result in non-contiguous pathway segments.
However, staff ultimately agree that providing developers with this option would likely result in more pathway segments being built. It should be noted that Policy 4.2 of the Pathways Element in the General Plan states that property owners on the Master Path Plan are required to either pay a pathway fee or construct paths on their property. As such, the option to construct a path instead of paying the pathway fee would only be available to properties that are on the Master Path Plan, and the path would only be constructed on the respective portions of their property. Owners of property that are not on the Master Path Plan would only be able to contribute to the completion of the pathways system by payment of a pathway fee.
No changes to the General Plan
or Zoning and Site Development
It would be in the Town’s best interest to update the Town policies and regulations to align with the adopted fee structure to better defend against any impact fee challenges.
Staff Report to City Council Page 5
FY26 Pathway Impact Fee Update
September 18, 2025
Ordinance for the current or
proposed pathway fee structures.
Retain the current pathway
fee/requirements exemption for
residential additions and
stables/barns less than 900 SF.
Staff initially proposed charging pathway impact fees to all additions as an attempt to backfill pathway impact fees not collected for ADUs. If the pathway fees are only assessed for new or additions of at least 900 SF, the Town would not accrue as much Pathway Fund as expected. In response, staff can keep the 900 SF threshold but would need to reduce the amount of pathway construction by the Town, pending available Pathway Funds.
Cap on the maximum pathway
fee
Staff propose capping the pathway development impact fee at 7,000 SF of new habitable floor area or additions. Staff chose this number because there are currently only a limited number of Site Development applications exceeding 7,000 SF of
habitable floor area, so the Town should still be able to collect a majority of potential fee amounts while also providing a cap.
Apply a placeholder so that the
proposed pathway impact fee can
be applied to multifamily units,
Conditional Use Permit (CUP)
projects, and SB9 units
According to Matrix, the proposed nexus methodology of
basing the pathway impact or in-lieu fee on square footage of habitable floor area can be applied to multifamily, CUP projects, and SB9 units. However, separate studies would be required to evaluate the fee nexus and structure for those projects.
Reimburse Pathway Fund from
General Fund for pathway fee
exemptions for ADU’s.
To cover the pathway fees not collected for ADU projects, the Planning Commission requested having General Fund cover or pay for ADU pathway fees. General Fund already covers the maintenance and operations of the pathways. General Fund covering ADU pathway fees can have an impact of $50,000 to $55,000 per year on the General Fund. Staff would not
recommend this option.
Pathway In-lieu Fee Proposal – April 17, 2025 Presentation to Council The fee assessment for the pathway in-lieu fee would be the same amount as the pathway development impact fee determined in the 2024 Pathway Fee Nexus Study based on new or additional square footage of habitable floor area, barn, and stable. If a parcel does not require the granting of pathway easements per the Master Path Plan and/or pathway construction is not required for development, the developer would pay the assessed fee. With recommendations and input from the Planning Commission to allow developers to build pathways, a pathway in-lieu fee to replace the current pathway development impact fee was proposed for consideration by Council at a public hearing on April 17, 2025.
Several community members provided public comments on the fee update, especially regarding the specifics of the fee update implementation. After hearing the comments, Council directed staff to take back the pathway fee item to the Pathways Committee, FIC, and Planning Commission to work out the implementation details and return to Council for consideration in September 2025.
Staff Report to City Council Page 6
FY26 Pathway Impact Fee Update
September 18, 2025
Updated Pathway Impact Fee Proposal
After the April 17th Council Meeting, staff received comments inquiring how an in-lieu fee can be charged to properties not on the Master Path Plan with no option to build pathways. The City Attorney weighed in and confirmed that the Town can charge a development impact fee or waive the fee if the developer has the option and builds/grants pathways per Town standards and requirements. The City Attorney clarified that the fee would need to be referred to as an impact fee, not an in-lieu fee.
Henceforth, the “pathway in-lieu fee” previously proposed to Council on April 17 is hereinafter referred to as the proposed FY26 Pathway Impact Fee Update with the following fee implementation details, which are further elaborated in the fee implementation resolution (Attachment 1) for Council’s consideration:
Pathway Impact Fee – New single-family homes or major additions 900 square feet or more of “habitable” and barn/stable floor areas (cumulative within ten years) shall be assessed a pathway impact fee based on the 2024 Pathway Fee Nexus Study. The Pathway Impact Fee shall be set at $5.49 per square foot of “habitable” and barn/stable floor areas per the proposed Planning/Building Fee Schedule update included below. Habitable floor area includes the total building floor area, excluding patio and garage spaces. The fee rate is subject to annual adjustment based on the Engineering News-Record (ENR) Construction Cost Index (CCI).
[Additions are noted in double-underline in red and deletions in strikethrough.] Impact Fees Fee
Pathway Impact Fee: See Engineering Fee Schedule for review and inspection deposits related to pathway construction.
New Single-Family Residence (includes SB 9
primary residence)
$10,943 $5.49/sq ft of habitable
floor area
Accessory Dwelling Unit (900 sq ft or larger)* $3,826 fee waived Additions (900 sq ft or larger) $3,826 $5.49/sq ft of habitable floor area
Equestrian Barns or stables (900 sq ft or
larger) $3,826 $5.49/sq ft
This fee is set per Resolution -- -25. Annual ENR CCI adjustment allowed for the Pathway Impact Fee. *For Accessory Dwelling Units, this fee shall be waived for the Planning Period 2023-2031.
For a property that has paid into the Pathway Fund or has built and granted pathways to the Town pursuant to Town standards and General Plan requirements, the Pathway Impact Fee shall only be assessed to the net increase to the habitable and barn or stable floor area.
Pathway Fees Paid – If a parcel has previously paid into the pathway system or constructed and dedicated pathways to the Town, the fee applies only to the net increase in habitable and barn/stable floor areas. For example, if an existing property with a 5,000-
Staff Report to City Council Page 7
FY26 Pathway Impact Fee Update
September 18, 2025
square-foot home has already paid into the pathway system, a project adding 1,000 square feet of habitable floor—or rebuilding the home to a total of 6,000 square feet of habitable floor area—would be assessed Pathway Impact Fee only on the 1,000-square-foot increase. Parcels on Master Path Plan – If a parcel is on the Master Path Plan and the developer builds and dedicates the required pathway per Town standards and requirements before Final Inspections of the building permit or issuance of Certificate of Occupancy, the Pathway Impact Fee would be waived.
Exemptions – Additions under 900 square feet of habitable or barn/stable floor areas within ten years are exempt from the pathway fee.
Fee Cap – The maximum Pathway Impact Fee for a single-family development is based on 7,000 square feet of habitable floor area, equaling to $38,430 during the first fiscal year of implementation.
Encroachment Permit – Any pathway design and construction must follow Town standards and requirements. Plans, including topographic surveys and necessary profiles/cross-sections, must be submitted through the Town’s Encroachment Permit process and be approved before a Building Permit for the development project can be issued. Pathways must be built according to approved plans. Deposit fee accounts will be established for staff to oversee private pathway development projects per the proposed FY 2025/26 Fee Schedule updates as shown below:
Encroachment into Public Right-of-Way Fee Deposit
Application Fee $326
Inspection Deposit $1,000
Trenching Fee (minimum $400) $17.00/lf
Fence; Wall; Irrigation; Driveway Cuts (maximum $595) $17.00/lf Sight Distance and Traffic Study Peer Review $3,000.00 plus 10% admin fee
Traffic Control Plan Review (Traffic Consultant) for
Standard Lane Closures $300.00 per sheet
Traffic Control Plan Review (Traffic Consultant) for
Long Term (over one week) Closures $900 per sheet
Staking of Pathway by Third-Party Surveyor(*)
$3,000 to $8,000
(varies based on
scope and actual
cost)
Review of Pathway Staking by Third-Party Surveyor(*) $3,000 Pathway Survey/Environmental/Design Review (Onsite
or Offsite) – Engineering Staff $2,000
Pathway Construction Inspections and Compaction
Testing(*) $2,000
(*) Third-party and consultant deposits would include additional administrative surcharges/fees typical for such deposits in the Fee Schedule.
Staff Report to City Council Page 8
FY26 Pathway Impact Fee Update
September 18, 2025
Easements – Developers must hire a licensed surveyor to prepare plats and legal descriptions for the pathway easement. The easement must be formally granted to and accepted by the Town before the pathway can be deemed completed and accepted by the Town.
Construction Oversight – Town staff will oversee pathway construction and issue final acceptance before the improvements are transferred to Town maintenance. Fee Collection – If a developer chooses not to, or is unable to, construct the required pathway, the Pathway Impact Fee will be collected before Final Inspection or issuance of a Certificate of Occupancy.
Subdivision Requirements – For subdivisions where pathways are not required, the Pathway Impact Fee is based on the greater of (a) the square footage indicated on the tentative map, or (b) 5,000 square feet of habitable floor area.
AB 602, signed into law by Governor Newsom in 2021, requires local agencies to adopt an appropriate nexus study before adopting a new development fee. Therefore, staff recommend Council adopt the final 2024 Pathway Fee Nexus Study dated September 2024 prepared by Matrix (Attachment 5), which the proposed pathway impact fee is based.
Staff also recommend that the City Council approve the proposed FY26 Pathway Impact Fee update based on the 2024 Pathway Fee Nexus Study, as outlined herein and further specified in the resolution (Attachment 1), which includes adjustments to the Planning, Building, and Engineering Fee Schedules to go into effect in FY26. Once approved, the new Pathway Impact Fee will become effective no sooner than 60 days following the final passage and adoption by the City Council, consistent with California Government Code Section 66017.
Proposed Zoning and Site Development Ordinance Amendments With the FY26 Pathway Impact Fee proposed, no amendments are required to the General Plan.
As advised by the City Attorney, amendments are needed to Municipal Code Sections §10-2.606 and §10-2.608 to remove the reference to ADUs for the pathway fee, update the definition of “habitable” floor area, and clarify the conditions of waiving the pathway fee. As mentioned, the pathway fees for ADUs have been waived with the approval of Resolution No. 77-23 for the Housing Element 5th and 6th Cycles. The “habitable” floor area would be amended to only exclude garage and patio spaces to simplify how habitable floor areas are quantified by staff and developers. The current Municipal Code sections for pathway fees also require updates to clarify the conditions for waiving the Pathway Impact Fee. The proposed Zoning and Site Development Ordinance amendment is shown below and also included as Attachment 2:
Additions are noted in double-underline in red and deletions in strikethrough. § 10-2.606 Payment of pathway fees and/or dedication of pathway easements.
Whenever a site development and/or a building permit is requested for a main residence, an accessory dwelling unit, an addition to a structure of at least 900 square feet of "habitable" floor area (including cumulative additions of 900 or more square feet of habitable floor area made over a period of 10 year(s)), or a barn or stable for equestrian use of at least 900 square feet in floor
Staff Report to City Council Page 9
FY26 Pathway Impact Fee Update
September 18, 2025
area, on a property which is designated on the Master Path Plan for an off-road pathway or for a roadside pathway, but where all or a portion of such roadside path cannot feasibly be located within the existing public or private right-of-way, the Town Site Development Authority may require dedication of a pathway easement for public use and the payment of pathway fees pursuant to Section 10-2.608 Pathway fee. The Town may waive and/or dedication of an easement for public use the pathway fee with the construction of the pathway per Town Standards by the property owner or developer and by granting the required public pathway on the public right-ofway or the property as part of the Town's pathway system according to the guidelines contained in the Pathway Element of the General Plan. Pathway easements shall be required within emergency road easements. In addition, the following guidelines apply:
(a) An easement should generally be located along the boundary of a property;
(b) The easement shall be located so as to connect to existing or future pathway segments at the boundaries of a property; and
(c) The easement shall not be located on terrain that cannot be safely or conveniently traversed by pedestrians or equestrians.
§ 10-2.608 Pathway fee.
A site development and/or building permit for a lot on which no path is needed and on which is to be constructed a main residence, an accessory dwelling unit, an addition to a structure of at least 900 square feet of "habitable" floor area (including cumulative additions of 900 or more square feet of habitable floor area made over a period of 10 years), or a barn or stable for equestrian use of at least 900 square feet in floor area shall be assessed a pathway fee, the amount of which shall be fixed by Council resolution as a development impact fee pursuant to the Mitigation Fee Act (AB 1600) (Government Code Section 66000 et seq.). For purposes of assessing the pathway fee, "habitable" floor area does not include additions or improvements for garage and patio spaces kitchen and dining rooms, entryways, foyers, hallways, stairways, or elevators. Pathway fees collected shall be deposited in the Town's pathway fund. No fee shall be assessed If the a lot has been assessed a pathway fee and has paid a fee or constructed and dedicated a pathway on the property per Town Standards pursuant to Section 9-1.1112 of the Subdivision Ordinance, a pathway fee shall be assessed only on a net increase to the “habitable” and barn or stable floor area.
Pathways Committee and Finance and Investment Committee Recommendations The FY26 Pathway Impact Fee update and the Ordinance Amendment were presented to FIC on July 22 and the Pathways Committee on July 28. Both committees unanimously recommended the fee update for approval. FIC’s July 22 meeting minutes are included as Attachment 11, but Pathways Committee’s July 28 meeting minutes are not yet posted. Below are the comments and feedback received at the committee meetings:
Finance and Investment Committee (July 22, 2025):
Staff Report to City Council Page 10
FY26 Pathway Impact Fee Update
September 18, 2025
- Consider updating the Ordinance to say “Pathway Impact Fee” instead of “Pathway Fee” for consistency. Staff mentioned that clarification is made in the fee update resolution (Attachment 1).
- Suggestion of not putting a maximum cap (7,000 SF) on the pathway impact fee. - Rather than only crossing off references to ADUs in the Ordinance, state that ADUs are exempt from Pathway Impact Fees. Staff mentioned that this may not be necessary. - Concerns raised regarding the equity of the fee proposal if a property can get the Pathway Impact Fee waived for only building a short segment of pathway. Staff mentioned that this could be the case, but for a small pool of properties.
- Use Consumer Price Index (CPI) rather than ENR CCI for the annual rate adjustments.
ENR CCI can generally be higher than CPI since CCI is more specific to the construction industry.
Pathways Committee (July 28, 2025):
- On the fee schedule, remove the note regarding ADU about 900sf or above. - Reduce the Engineer deposit fees to encourage developers to design and build pathways.
Planning Commission Public Hearing – September 4, 2025
At a Public Hearing on September 4, 2025, the Planning Commission was presented with the FY26 Pathway Impact Fee proposal and the Zoning and Site Development Ordinance amendments. The information provided to the Planning Commission was consistent with that previously shared with FIC and Pathways Committee, with some minor staff edits to the Ordinance amendments. After an extensive discussion, the Planning Commission adopted a resolution recommending that the City Council approve an ordinance amending Article 6 of Chapter 2, Title 10 of the Los Altos Hills Municipal Code, with the minor staff edits as presented to the Planning Commission on September 4 related to the Pathway Impact Fee update based on the 2024 Pathway Fee Nexus Study. The Ordinance Amendment included as Attachment 2 is the version approved by the Planning Commission with the minor edits.
With the approval of the Ordinance Amendment, the Planning Commission also voted to forward the following recommendations (in italics) related to the implementation of the proposed Pathway Impact Fee update to the City Council for consideration:
1. Direct staff to clarify and simplify the new Engineering deposit fees related to the proposed Pathway Impact Fee. The Planning Commission was concerned about the high deposit amounts and the necessity of certain proposed deposit fee items, which they believe may discourage developers from building pathways.
To support Town staff oversight of pathway design and construction by developers, four (4) new deposit fee items are proposed for inclusion in the Encroachment Permit Engineering Fee Schedule. Planning Commission requested additional clarification on the proposed Engineering deposit fees, including how they would be applied and means to minimize costs.
Staff Report to City Council Page 11
FY26 Pathway Impact Fee Update
September 18, 2025
Prior to 2019, when property owners and developers constructed pathways, no Engineering fees may have been assessed. Commissioners noted this practice, and staff explained that during that period, the Town may not have closely monitored pathway design and construction and may not have fully recovered associated staff costs. To ensure greater fiscal responsibility, the new Engineering deposit fee items are intended to recover Town costs related to development activities.
As presented to the Planning Commission, only the specific deposits applicable to a given pathway project would be assessed. For example, staking is a critical step in pathway design and construction to establish alignment with existing conditions and property boundaries. The proposed “Staking of Pathways by Third-Party Surveyor” fee will only apply if a developer requests that the Town arrange staking services through a third-party surveyor, with the deposit amount based on the actual survey cost. Similarly, the “Review of Staking Information by Third-Party Surveyor” fee would apply only when the Town must retain a surveyor to verify ambiguous or questionable staking information submitted by a developer to confirm the location of easements, public rights-of-way, or proposed pathway alignments.
Based on the Planning Commission recommendations, staff incorporated more information and clarification into the proposed Engineering Fee Schedule, as highlighted below and included in Attachment 1:
Encroachment into Public Right-of-Way
and Public Easements
Fee Deposit
Application Fee $326
Inspection Deposit $1,000
Trenching Fee (minimum $400) $17.00/lf
Fence; Wall; Irrigation; Driveway Cuts (maximum $595) $17.00/lf Sight Distance and Traffic Study Peer Review $3,000.00 plus 10% admin fee
Traffic Control Plan Review (Traffic Consultant) for
Standard Lane Closures $300.00 per sheet
Traffic Control Plan Review (Traffic Consultant) for
Long Term (over one week) Closures $900 per sheet
Staking of Pathway by Third-Party Surveyor (only
applicable when developers request this service from the Town)
$3,000 to $8,000
(varies based on
scope and actual
cost) plus 10%
admin fee
Review of Pathway Staking by Third-Party Surveyor
(only applicable if staking survey information provided by developers need to be validated or confirmed)
$3,000 plus
10% admin fee
Pathway Survey/Environmental/Design Review (Onsite
or Offsite) – Engineering Staff (applicable to all pathway projects for staff to oversee)
$2,000
Staff Report to City Council Page 12
FY26 Pathway Impact Fee Update
September 18, 2025
Pathway Construction Inspections and Compaction
Testing (for Engineering staff to inspect pathway
construction and for third-party vendors to perform
compaction tests)
$2,000 includes
10% admin
fee for thirdparty vendors
2. Direct staff to conduct necessary studies to establish a pathway fee structure for multifamily housing developments as soon as possible to be reviewed by the Planning Commission before adoption by Council.
The Planning Commission noted that multifamily housing developments could play an important role in generating sufficient pathway fees to address current limitations to the proposed Pathway Impact Fee. These limitations include fee waivers for ADUs, the 900- square-foot threshold for pathway requirements, and the fee cap at 7,000 square feet of floor area.
For the Town to conduct a pathway fee analysis for multifamily housing, staff may need to understand the zoning rules and the magnitude of multifamily housing projects to be expected.
Based on that analysis, the corresponding impacts on the Town’s pathway system could then be determined. This effort aligns with the task in the 2024-25 City Council Work Plan Item to evaluate Town impact fees, which staff anticipates initiating in late 2025 or first half of 2026.
3. Direct the staff to update Town records for pathway fees and build an appropriate database.
The Planning Commission received comments suggesting that the Town should take responsibility for verifying and maintaining records of whether a parcel has previously contributed to the pathway system. Currently, for each development project of 900 square feet or larger, staff conduct extensive research through historical finance, subdivision, planning, and building records to determine if the parcel has either paid a pathway fee or constructed pathways to Town standards. If no such records are identified, a pathway fee is assessed. Staff propose continuing this practice until a comprehensive tracking database can be developed, recognizing that creating such a system would require substantial staff resources and time.
At present, the Town utilizes the TRAKiT permit and parcel management system to record pathway fee payments. However, records predating TRAKiT are difficult to trace due to record retention limits, the age of documents, and the large volume of files that must be reviewed.
To address this challenge, staff are exploring technology such as artificial intelligence (AI) to search across Town records. While this could improve efficiency, significant costs may be associated with digitizing and uploading legacy data, as well as staff time needed for verification. Staff recommends including this initiative in the 2026–27 City Council Work Plan to allow additional time to evaluate the resources necessary for building a reliable database.
4. Grant flexibility to allow construction of native (off-road) pathways where roadside pathways are required.
The Pathways Element of the General Plan defines Roadside and Off-road Paths as follows:
Staff Report to City Council Page 13
FY26 Pathway Impact Fee Update
September 18, 2025
Roadside Paths
The Town's pathways system is composed of roadside paths and off-road paths. Roadside paths are located within or adjacent to the road right-of-way. The road right-of-way is generally planned to have the width needed to accommodate both the paved road as well as a separated path. Roadside paths provide safe routes for pedestrians and equestrians in the Town, much as sidewalks function in more urban communities. Roadside paths separate the car and the pedestrian or other non-vehicular user and allow each a safer movement. The hills of the Town result in streets that often have steep sections or blind curves, which make pedestrian separation more important than with a grid street system.
Off-road Paths
Off-road paths provide links between adjacent neighborhoods and schools for pedestrians, bicyclists, and equestrians. Off-road paths, which connect to roadside paths or open space lands, are generally located on dedicated easements on private property (usually along property lines), through public lands, or through privately owned conservation/open space easements. Off-road paths make it possible to travel by foot or horseback to nearby neighborhoods without using Town roads.
The Town’s current Standard Detail for roadside path is provided in Attachment 12. These paths are constructed with Stevens Creek quarry crushed fines compacted to specific requirements, with water bars installed per Town Standard Detail No. 21 (Attachment 13) if required to direct stormwater away from the pathway. Off-road paths, by contrast, are native soil paths created by clearing vegetation, re-grading soil, and compacting the natural ground.
For both pathway types, retaining walls may be required to achieve proper cross-slopes or to stabilize soil on hillsides.
If the City Council wishes to allow greater flexibility in locating off-road (native) paths—or to permit the use of native paths in roadside locations—the Council may need to direct staff to update certain pathway standards. The advantage of this approach would be to enable simpler and narrower native pathways along roadsides, constructed with minimal compaction, in locations where a roadside pathway may not be feasible. Any modification to Town pathway standards would first require review and discussion with the Pathways Committee and Open Space Committee. Staff recommends including this task in the 2026–27 City Council Work Plan.
Noticing/Public Outreach
Per AB 602, the Town is required to provide a 30-day public notice for meetings involving fee updates. The public was advised of this Public Hearing in the following ways:
Publication of public notice/legal ad on Post (August 15, 2025) Public Posting Places (September 12, 2025)
o Town Hall
o Public Noticing Board on Christopher’s Lane
o Public Noticing Board on Summerhill Avenue
Staff Report to City Council Page 14
FY26 Pathway Impact Fee Update
September 18, 2025
Publication of agenda materials on Town website (September 12, 2025)
ENVIRONMENTAL REVIEW
There is no potential for physical effects on the environment because the proposed action involves adoption of fees and/or assessments imposed by the Town, does not commit the Town to any specific project, and said fees and/or assessments are applicable to future development projects and/or activities, and said fees and/or assessments are applicable to future development projects and/or activities, each of which future projects and/or activities will be fully evaluated in full compliance with the California Environmental Quality Act (“CEQA”) when sufficient physical details regarding said projects and/or activities are available to permit meaningful CEQA review (See CEQA Guidelines, Section 15004(b)(1). The creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environmental are not a “project” for purposes of CEQA, pursuant to CEQA Guidelines, Section 15378(b)(4). Even if the action is a “project”, the project is categorically exempt under CEQA per Section 15301(c), existing facilities including bicycle and pedestrian trails. 2024-25 CITY COUNCIL WORK PLAN
This action is identified on the 2024-25 City Council Work Plan under Protect and Maintain Infrastructure for the Pathway Fee Nexus Study to update the pathway fee.
FISCAL IMPACT
The Town collected approximately $106,000 in pathway development impact fees in FY23, $180,000 in FY24. The current balance of the Pathway Fund is $866,436, which includes approximately $138,000 in Pathway Fund revenues collected in FY25. The balance may be depleted after the Summerhill Avenue and Magdalena Road Pathway projects, anticipated for construction in 2026.
With the proposed FY26 Pathway Impact Fee, it may be difficult for staff to estimate annual revenues collected for the Pathway Fund. Fewer impact fees collected would mean more pathway segments being built by developers. Staff resources would need to be diversified between planning/design/building new pathways and overseeing the design/construction of pathways by private developers. Staff can arbitrarily estimate that $150,000 to $200,000 would be collected annually in Pathway Impact Fees. Staff would work with the Pathways Committee to develop a plan to continue building new pathways that are proportional to the Pathway Funds collected.
Adopting the proposed Pathway Impact Fee may result in an overall slight increase to the Pathway Fund collected for design, environmental review, mitigation, legal defense, and pathway construction by the Town. While more pathways may be built at properties being developed, there may be less funds over time for the Town to build pathways. Staff plans to reduce funding for future capital pathway projects in the five-year capital budget to align with anticipated Pathway Impact Fee revenues.
Staff Report to City Council Page 15
FY26 Pathway Impact Fee Update
September 18, 2025
ATTACHMENTS
1. Resolution Adopting Pathway Fee Nexus Study and FY26 Pathway Impact Fee
2. Ordinance for Amendments to the LAHMC related to the Pathway Impact Fee
3. Ordinance 381 - Established Pathway Fund (1996)
4. City Council Resolution No. 62-19 – Adopted 2019 Pathway Impact Fee
5. Ordinance 584 – Ordinance Amendments for 2019 Pathway Impact Fee
6. City Council Resolution No. 77-23 – Waived Pathway Fee for ADUs (2023)
7. Final 2024 Pathway Fee Nexus Study
8. FIC June 3, 2024 Meeting Minutes
9. FIC October 7, 2024 Meeting Minutes
10. Planning Commission March 12, 2025 Meeting Minutes
11. FIC July 22, 2025 Meeting Minutes
12. Roadside Path Type (2B) Standard Detail #15
13. Pathway Water Bar Standard Detail #21
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RESOLUTION __-25
RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS ADOPTING THE 2024 PATHWAY FEE NEXUS STUDY AND THE PROPOSED FY26
PATHWAY IMPACT FEE UPDATE IN ACCORDANCE WITH THE MITIGATION
FEE ACT
WHEREAS, the Town of Los Altos Hills established a pathway fee in 1996 and created a Pathway Fund for collected fees; and
WHEREAS, on October 17, 2019, the Town adopted Ordinance 584 amending Section 3-3.303, Section 9-1.1112, and Article 6 of Chapter 2, Title 10 of the Municipal Code concerning the pathway fee and pathway fund; and
WHEREAS, Article 6 “Pathway Dedication, Maintenance and Improvement” of Chapter 2 “Site Development,” Title 10 “Zoning and Site Development” of the Los Altos Hills Municipal Code implements the Master Pathway Plan of the General Plan of the Town; and WHEREAS, the current Pathway Development Impact Fee, adopted in 2019 through a nexus study, consists of flat fees of $10,943 for new residences and $3,826 for major additions of 900 square feet or more, including barns and stables; and
WHEREAS, on May 17, 2023, the Council directed staff to initiate a Pathway Impact Fee Study as recommended by the Pathways Committee, with the understanding that pathway construction costs have significantly increased, and the current pathway fee structure is not sufficient to sustain pathway construction needs for the Town; and
WHEREAS, Matrix Consulting Group was hired by the Town to prepare the 2024 Pathway Fee Nexus Study, which recommended updates to the pathway development impact fee based on development square footage of habitable floor area; and WHEREAS, different options to assess the pathway fee were evaluated, but the focus was to update the pathway development impact fee assessed on square footage of development due to a new nexus analysis requirement per Assembly Bill (AB) 602; and WHEREAS, per AB602, a unit pathway development impact based on square footage of development was established by dividing the total estimated capital cost of the existing 85.88 miles of Town pathways ($1,060,659) by the estimated number of Town parcels (3,151 parcels), then dividing that further by an average size of developments in the Town (5,269 square feet), which resulted in a pathway impact fee of $5.49 per square foot of habitable and barn or stable floor area of developments; and
WHEREAS, staff has presented the 2024 Pathway Fee Nexus Study and the pathway impact fee update at the following duly noticed public meetings on June 3, 2024 to the Finance and Investment Committee, on June 24, 2024 to the Pathways Committee, and on October 7, 2024 to the Finance and Investment Committee again, during when both committee recommended the nexus study and the pathway impact fee update for approval by Council; and ITEM 7A Attachment 1
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WHEREAS, on March 12, 2025, the Planning Commission held a duly noticed public hearing at which time all interested parties were provided an opportunity to give input and participate in the public process to consider the proposed the General Plan Pathway Element and Zoning and Site Development Ordinance amendments related to the 2025 pathway development impact fee update, wherein the Planning Commission recommended that the City Council make no amendments to the General Plan and Town Ordinance for the pathway fee update and recommended that the City Council consider a pathway in-lieu fee option for property owners; and WHEREAS, on April 17, 2025, the City Council held a duly noticed public hearing at which time all interested parties were provided an opportunity to give input and participate in the public process to consider the 2025 pathway in-lieu fee as suggested by the Planning Commission and the proposed Zoning and Site Development Ordinance amendments, wherein City Council directed staff to present the proposed pathway fee update and ordinance amendments to the Finance and Investment Committee, the Pathway Committee, and the Planning Commission for additional review and input; and
WHEREAS, after further evaluation of the pathway impact fee and consultation with the City Attorney, the pathway fee that waives the impact fee when a developer constructs the pathway would need to be referred to as a pathway impact fee by legal definition; and WHEREAS, the latest proposal for the FY26 Pathway Impact Fee is as follows:
Pathway Impact Fee – New single-family homes or major additions 900 square feet or more of “habitable” and barn/stable floor areas (cumulative within ten years) shall be assessed a pathway impact fee based on the 2024 Pathway Fee Nexus Study. The Pathway Impact Fee shall be set at $5.49 per square foot of “habitable” and barn/stable floor areas per the proposed Planning/Building Fee Schedule update included in this Resolution (“Exhibit A”) and as shown below. Habitable floor area includes the total building floor area, excluding patio and garage spaces. The fee rate is subject to annual adjustment based on the Engineering News-Record (ENR) Construction Cost Index (CCI). [Additions are noted in double-underline in red and deletions in strikethrough.] Impact Fees Fee
Pathway Impact Fee: See Engineering Fee Schedule for review and inspection deposits related to pathway construction.
New Single-Family Residence (includes SB 9
primary residence)
$10,943 $5.49/sq ft of habitable
floor area
Accessory Dwelling Unit (900 sq ft or larger)* $3,826 fee waived Additions (900 sq ft or larger) $3,826 $5.49/sq ft of habitable floor area
Equestrian Barns or stables (900 sq ft or
larger) $3,826 $5.49/sq ft
This fee is set per Resolution -- -25. Annual ENR CCI adjustment allowed for the Pathway Impact Fee. *For Accessory Dwelling Units, this fee shall be waived for the Planning Period 2023-2031.
For a property that has paid into the Pathway Fund or has built and granted pathways to the Town pursuant to Town standards and General Plan requirements, the Pathway Impact Fee shall only be assessed to the net increase to the habitable and barn or stable floor area.
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Pathway Fees Paid - If a parcel has previously paid into the pathway system or constructed and dedicated pathways to the Town, the fee applies only to the net increase in habitable and barn/stable floor areas. For example, if an existing property with a 5,000-square-foot home has already paid into the pathway system, a project adding 1,000 square feet of habitable floor—or rebuilding the home to a total of 6,000 square feet of habitable floor area—would be assessed Pathway Impact Fee only on the 1,000-square-foot increase. Parcels on Master Path Plan – If a parcel is on the Master Path Plan and the developer builds and dedicates the required pathway per Town standards and requirements prior to Final Inspections of the building permit or issuance of Certificate of Occupancy, the Pathway Impact Fee would be waived.
Exemptions – Additions under 900 square feet of habitable or barn/stable floor areas within ten years are exempt from the pathway fee.
Fee Cap – The maximum Pathway Impact Fee for a single-family development is based on 7,000 square feet of habitable floor area, equaling to $38,430 during the first fiscal year of implementation.
Encroachment Permit – Any pathway design and construction must follow Town standards and requirements. Plans, including topographic surveys and necessary profiles/cross-sections, must be submitted through the Town’s Encroachment Permit process and be approved before a Building Permit for the development project can be issued. Pathways must be built according to approved plans. Deposit fee accounts will be established for staff to oversee private pathway development projects per the proposed FY 2025/26 Fee Schedule update included in this Resolution (“Exhibit A”) and as shown below:
[Additions are noted in double-underline in red and deletions in strikethrough.] Encroachment into Public Right-of-Way
and Public Easements
Fee Deposit
Application Fee $326
Inspection Deposit $1,000
Trenching Fee (minimum $400) $17.00/lf
Fence; Wall; Irrigation; Driveway Cuts (maximum $595) $17.00/lf Sight Distance and Traffic Study Peer Review $3,000.00 plus 10% admin fee
Traffic Control Plan Review (Traffic Consultant) for
Standard Lane Closures $300.00 per sheet
Traffic Control Plan Review (Traffic Consultant) for
Long Term (over one week) Closures $900 per sheet
Staking of Pathway by Third-Party Surveyor (only
applicable when developers request this service from the Town)
$3,000 to $8,000
(varies based on
scope and actual
cost) plus 10%
admin fee
Review of Pathway Staking by Third-Party Surveyor
(only applicable if staking survey information provided by developers need to be validated or confirmed)
$3,000 plus
10% admin fee
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Pathway Survey/Environmental/Design Review (Onsite
or Offsite) – Engineering Staff (applicable to all pathway projects for staff to oversee)
$2,000
Pathway Construction Inspections and Compaction
Testing (for Engineering staff to inspect pathway
construction and for third-party vendors to perform
compaction tests)
$2,000 includes
10% admin
fee for thirdparty vendors
Easements – Developers must hire a licensed surveyor to prepare plats and legal descriptions for the pathway easement. The easement must be formally granted to and accepted by the Town before the pathway can be deemed completed and accepted by the Town.
Construction Oversight – Town staff will oversee pathway construction and issue final acceptance before the improvements are transferred to Town maintenance. Fee Collection – If a developer chooses not to, or is unable to, construct the required pathway, the Pathway Impact Fee will be collected before Final Inspection or issuance of a Certificate of Occupancy.
Subdivision Requirements – For subdivisions where pathways are not required, the Pathway Impact Fee is based on the greater of (a) the square footage indicated on the tentative map, or (b) 5,000 square feet of habitable floor area.
WHEREAS, for the waiver of the Fee, the developer must pull an encroachment permit from Public Works Engineering as early as possible for staff to oversee the site survey, environmental determinations and mitigations, design, and construction of the pathway, and the construction of the pathway and its acceptance by the Town must be completed before the final inspection or the issuance of certificate of occupancy of the associated building permit(s); and WHEREAS, if the pathway is not constructed and accepted by the Town before the final inspection or occupancy, the Fee may be assessed against the property; and WHEREAS, staff presented the 2024 Pathway Nexus Study and the FY26 Pathway Impact Fee proposal and related Zoning Text Amendments to the Finance and Investment Committee on July 22, 2025, and to the Pathways Committee on July 28, 2025, wherein both committees provided few comments but recommended the proposed Pathway Impact Fee to Council for approval; and WHEREAS, on September 4, 2025, the Planning Commission held a duly noticed public hearing at which time all interested parties were provided an opportunity to give input and participate in the public process to consider the proposed Zoning Text Amendments for the FY26 Pathway Impact Fee update based on the 2024 Pathway Nexus Study, wherein the Planning Commission approved a resolution recommending that the City Council approve amendments to Article 6 of Chapter 2, Title 10 (Zoning And Site Development) of the Municipal Code to amend regulations related to the FY26 Pathway Impact Fee update; and
WHEREAS, the Planning Commission also recommended the following comments and feedback for the City Council's consideration for the implementation of the proposed FY26 Pathway Impact Fee update:
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1. Direct staff to clarify and simplify the new Engineering deposit fees related to the proposed Pathway Impact Fee.
2. Direct staff to conduct necessary studies to establish a pathway fee structure for multifamily housing developments as soon as possible to be reviewed by the Planning Commission before adoption by Council.
3. Direct staff to create and maintain a database of pathway fees paid and built.
4. Grant flexibility to allow the construction of native (off-road) pathways where roadside pathways are required.
WHEREAS, staff added clarifications to the new Engineering deposit fees on the fee schedule included in “Exhibit A,” but other recommendations from the Planning Commission regarding the fee structure for multifamily housing, database of pathway fees paid, and flexibility in pathway standards would require separate Council directions; and WHEREAS, Sections 66000 et seq. of the California Government Code (“Mitigation Fee Act”) allows agencies to mitigate the impacts caused by new development by providing for the payment of development impact fees necessary for agencies to acquire property and construct new facilities to serve new residents and to maintain desirable levels of service for new and existing residents; and
WHEREAS, AB 602 requires that local agencies adopt an appropriate nexus study as a precondition to adopt new development fees; and
WHEREAS, on September 18, 2025, the City Council held a duly noticed public hearing in compliance with California Government Code sections 66016.5, 66017, and 66018, at which public testimonies were received, to adopt the 2024 Pathway Fee Nexus Study and consider the FY26 Pathway Impact Fee update; and
WHEREAS, in a separate action of the City Council, the Municipal Code is being amended to be consistent with the updated pathway impact fee; and
WHEREAS, an annual development impact fee report for the pathway impact fee will be provided to the City Council as required by Government Code Section 66066(a); and WHEREAS, the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environmental are not a “project” for purposes of the California Environmental Quality Act (“CEQA”), pursuant to CEQA Guidelines, Section 15378(b)(4); and
WHEREAS, the City Council desires to implement the FY26 Pathway Impact Fee and the associated Town fees to oversee the pathway project per the Planning/Building/Engineering Fee Schedules update in “Exhibit A”, which will become effective no sooner than 60 days following the final passage and adoption of this Resolution, consistent with California Government Code Section 66017.
NOW, THEREFORE, BE IT RESOLVED that the foregoing recitals and findings are found to be true and correct and incorporated into this Resolution and the City Council of the Town of Los Altos Hills hereby approves and adopts as follows:
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1. The 2024 Pathway Fee Nexus Study prepared by Matrix Consulting Group, included as Attachment 7 of the Council Staff Report for this Resolution; and
2. The FY26 Pathway Impact Fee for new and additions of “habitable” and barn or stable floor areas, cumulative totaling 900 square feet or more within a ten (10) year period, as described herein and pursuant to the Mitigation Fee Act; and
3. The Pathway Impact Fee specified and the Planning/Building/Engineering Fee Schedules for FY26 as set forth in “Exhibit A” of the Resolution based on the 2024 Pathway Fee Nexus Study, and these fees shall become effective pursuant to the effective dates set forth in “Exhibit A” following the final passage and adoption of this Resolution and shall remain in effect until a new Resolution amending the same is adopted by the City Council; and
4. Accessory dwelling units shall not be assessed the pathway impact fee during the Town’s Housing Element cycle of 2023-2031; and
5. The Pathway Impact Fee shall be collected in the Pathway Fund, which may only be used for the design and construction or reconstruction of pathways to serve new residents and new equestrian users; and
6. The pathway impact fee and other associated fees set by this Resolution shall be effective 60 days from the effective date of this Resolution in accordance with Government Code Section 66017; and
7. The City Council may, by resolution, adopt administrative guidelines to provide procedures for administrative aspects of the FY26 Pathway Impact Fee; and
8. Each component of the FY26 Pathway Impact Fee and all portions of this Resolution are severable and should any individual component of the pathway impact fees or other provision of this Resolution be adjudged to be invalid and unenforceable, the remaining component or provisions shall be and continue to be fully effective, and the pathway impact fees shall be fully effective except as to that component that has been judged to be invalid.
The above and foregoing resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 18th day of September 2025 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
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By:
Kavita Tankha, Mayor
ATTEST:
Arika Birdsong-Miller, City Clerk
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Exhibit A
(FY2025/26 Pathway Impact updates – only updated sections are shown below with additions in red double underline and deletions in strikethrough) Planning Fee Schedule FY 2025/26
Adopted via Resolution No. ___-25 – Effective Date: November 18, 2025 Impact Fees Fee
Pathway Impact Fee: See Engineering Fee Schedule for review and inspection deposits related to pathway construction.
New Single-Family Residence (includes SB 9
primary residence)
$10,943 $5.49/sq ft of habitable
floor area
Accessory Dwelling Unit (900 sq ft or larger)* $3,826 fee waived Additions (900 sq ft or larger) $3,826 $5.49/sq ft of habitable floor area
Equestrian Barns or stables (900 sq ft or
larger) $3,826 $5.49/sq ft
This fee is set per Resolution -- -25. Annual ENR CCI adjustment allowed for the Pathway Impact Fee. *For Accessory Dwelling Units, this fee shall be waived for the Planning Period 2023-2031.
For a property that has paid into the Pathway Fund or has built and granted pathways to the Town pursuant to Town standards and General Plan requirements, the Pathway Impact Fee shall only be assessed to the net increase to the habitable and barn or stable floor area.
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Building Fee Schedule FY 2025/26
Adopted via Resolution No. ___-25 – Effective Date: November 18, 2025 Impact Fees Fee
Pathway Impact Fee: See Engineering Fee Schedule for review and inspection deposits related to pathway construction.
New Single-Family Residence (includes SB 9
primary residence)
$10,943 $5.49/sq ft of habitable
floor area
Accessory Dwelling Unit (900 sq ft or larger)* $3,826 fee waived Additions (900 sq ft or larger) $3,826 $5.49/sq ft of habitable floor area
Equestrian Barns or stables (900 sq ft or
larger) $3,826 $5.49/sq ft
This fee is set per Resolution -- -25. Annual ENR CCI adjustment allowed for the Pathway Impact Fee. *For Accessory Dwelling Units, this fee shall be waived for the Planning Period 2023-2031.
For a property that has paid into the Pathway Fund or has built and granted pathways to the Town pursuant to Town standards and General Plan requirements, the Pathway Impact Fee shall only be assessed to the net increase to the habitable and barn or stable floor area.
-3-
Engineering Fee Schedule FY2025/26
Adopted via Resolution No. ___-25 – Effective Date: November 18, 2025 Encroachment into Public Right-of-Way
and Public Easements
Fee Deposit
Application Fee $326
Inspection Deposit $1,000
Trenching Fee (minimum $400) $17.00/lf
Fence; Wall; Irrigation; Driveway Cuts (maximum $595) $17.00/lf Sight Distance and Traffic Study Peer Review $3,000.00 plus 10% admin fee
Traffic Control Plan Review (Traffic Consultant) for
Standard Lane Closures $300.00 per sheet
Traffic Control Plan Review (Traffic Consultant) for
Long Term (over one week) Closures $900 per sheet
Staking of Pathway by Third-Party Surveyor (only
applicable when developers request this service from the Town)
$3,000 to $8,000
(varies based on
scope and actual
cost) plus 10%
admin fee
Review of Pathway Staking by Third-Party Surveyor
(only applicable if staking survey information provided by developers need to be validated or confirmed)
$3,000 plus
10% admin fee
Pathway Survey/Environmental/Design Review (Onsite
or Offsite) – Engineering Staff (applicable to all pathway projects for staff to oversee)
$2,000
Pathway Construction Inspections and Compaction
Testing (for Engineering staff to inspect pathway
construction and for third-party vendors to perform
compaction tests)
$2,000 includes
10% admin
fee for thirdparty vendors
ORDINANCE ______
AN ORDINANCE OF THE TOWN OF LOS ALTOS HILLS AMENDING ARTICLE 6 OF CHAPTER 2, TITLE 10 (ZONING AND SITE DEVELOPMENT) OF THE LOS
ALTOS HILLS MUNICIPAL CODE TO AMEND REGULATIONS RELATED TO THE FY26 PATHWAY IMPACT FEE UPDATE
WHEREAS, the Town of Los Altos Hills established a pathway fee in 1996 and created a Pathway Fund for collected fees; and
WHEREAS, on October 17, 2019, the Town adopted Ordinance 584 amending Section 3-3.303, Section 9-1.1112, and Article 6 of Chapter 2, Title 10 of the Municipal Code concerning the pathway fee and pathway fund; and
WHEREAS, Article 6 “Pathway Dedication, Maintenance and Improvement” of Chapter 2 “Site Development,” Title 10 “Zoning and Site Development” of the Los Altos Hills Municipal Code implements the Master Pathway Plan of General Plan of the Town; and WHEREAS, on May 17, 2023, Council directed staff to initiate a Pathway Impact Fee Study as recommended by the Pathways Committee, with the understanding that pathway construction costs have significantly increased, and the current pathway fee structure is not sufficient to sustain pathway construction needs for the Town; and
WHEREAS, Matrix Consulting Group was hired by the Town to prepare the 2024 Pathway Fee Nexus Study, which recommended updates to the pathway development impact fee based on development square footage of habitable floor area; and WHEREAS, staff has presented the 2024 Pathway Fee Nexus Study and the pathway impact fee update at the following duly noticed public meetings on June 3, 2024 to the Finance and Investment Committee, on June 24, 2024 to the Pathways Committee, and on October 7, 2024 to the Finance and Investment Committee again, during when both committee recommended the nexus study and the pathway impact fee update for approval by Council; and WHEREAS, on March 12, 2025, the Planning Commission held a duly noticed public hearing at which time all interested parties were provided an opportunity to give input and participate in the public process to consider the proposed the General Plan Pathway Element and Zoning and Site Development Ordinance amendments related to the 2025 pathway development impact fee update, wherein the Planning Commission recommended that the City Council make no amendments to the General Plan and Town Ordinance for the pathway fee update and recommended that the City Council consider a pathway in-lieu fee option for property owners; and WHEREAS, on April 17, 2025, the City Council held a duly noticed public hearing at which time all interested parties were provided an opportunity to give input and participate in the public process to consider the 2025 pathway in-lieu fee as suggested by the Planning Commission and the proposed Zoning and Site Development Ordinance amendments, wherein City Council directed staff to present the proposed pathway fee update and ordinance amendments to the ITEM 7A Attachment 2
Finance and Investment Committee, the Pathway Committee, and the Planning Commission for additional review and input; and
WHEREAS, after further evaluation of the pathway impact fee, staff presented the 2024 Pathway Nexus Study, the FY26 Pathway Impact Fee update, and related Zoning Text Amendments to the Finance and Investment Committee on July 22, 2025 and to the Pathways Committee on July 28, 2025, wherein both committees provided few comments but recommended the proposed Zoning Text Amendments to Council for approval; and
WHEREAS, on September 4, 2025, the Planning Commission held a duly noticed public hearing at which time all interested parties were provided an opportunity to give input and participate in the public process to consider the proposed Zoning Text Amendments for the FY26 Pathway Impact Fee update based on the 2024 Pathway Nexus Study, wherein the Planning Commission approved a resolution recommending that the City Council approve amendments to Article 6 of Chapter 2, Title 10 (Zoning And Site Development) of the Municipal Code to amend regulations related to the FY26 Pathway Impact Fee update; and
WHEREAS, the Town desires to amend Section 10-2.606 “Payment of pathway fees and/or dedication of pathway easement” and Section 10-2.608 “Pathway Fee” to remove the reference to accessory dwelling units (ADU’s) for pathway fee and requirements, update the definition of “habitable” floor area, and to align the Town policies and regulations with the most recent FY2025/26 Pathway Impact Fee Update based on the 2024 Pathway Fee Nexus Study with the understanding that pathway construction costs have significantly increased, and current pathway fee structure is not sufficient to sustain pathway construction needs for the Town; and WHEREAS, the “habitable” floor area would be amended to only exclude improvements to garages and outdoor patio spaces to simplify how habitable floor areas are quantified by staff and developers through the development review process; and
WHEREAS, for properties that have paid into the pathways or constructed public pathways per Town Standards, the pathway impact fee would only be assessed on the net increase of habitable and barn or stable floor area; and
WHEREAS, pathway fee assessments would be triggered by 900 square feet of new or additions of habitable and barn or stable floor area, including cumulative additions of 900 or more square feet made over a period of ten years, or a barn or stable for equestrian use; and WHEREAS, the Town may waive the pathway impact fee for properties designated on the Master Path Plan for a public path if the property owner or developer constructs a public pathway per Town standards and grants the pathway to the Town as part of the Town’s pathway system according to the guidelines contained in the Pathway Element of the General Plan; and WHEREAS, on September 18, 2025, the City Council held a duly noticed public hearing to consider the most recent Pathway Impact Fee update and the proposed Zoning Text Amendments, at which time all interested parties were provided an opportunity to give input and participate in the public process; and
WHEREAS, there is no potential for physical effects on the environment because the proposed action involves adoption of fees and/or assessments imposed by the Town does not commit the Town to any specific project, and said fees and/or assessments to future development projects and/or activities, each of which future projects and/or activities will be fully evaluated in full compliance with the California Environmental Quality Act (“CEQA”) when sufficient physical details regarding said projects and/or activities are available to permit meaningful CEQA review per CEQA Guidelines, Section 15004(b)(1); and
WHEREAS, the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environmental are not a “project” for purposes of CEQA, pursuant to CEQA Guidelines, Section 15378(b)(4), and even if considered a “project” under CEQA, is exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that adoption of the fees and/or assessments imposed by the Town may have a significant effect on the environment.
NOW, THEREFORE, the City Council of the Town of Los Altos Hills hereby ordains as follows:
SECTION I. FINDINGS.
Based on the entirety of the record as described above, the City Council for the Town of Los Altos Hills hereby makes the following findings:
1. All of the facts and recitals above are true, correct, incorporated herein and made a part hereof.
2. Based on the entirety of the record before it, the City Council hereby finds that this Ordinance is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(4) of the CEQA Guidelines. Under CEQA Guidelines Section 15378(b)(4), the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environmental are not a “project” for purposes of CEQA. In this case, the proposed Zoning and Site Development Ordinance Amendments are related to the Pathway In-Lieu Fee Update, which do not have a potential for creating a significant environmental effect as they do not implement any land use projects or issue any entitlements.
3. This Ordinance was prepared, introduced, and adopted in accordance with the requirements of Planning and Zoning Law (Government Code, sections 65853-65860) and meets all of the requirements thereunder.
4. This Ordinance is consistent with and supports the Los Altos Hills General Plan because implementing the FY26 Pathway Impact Fee for all property owners within the Town and providing the option for designated properties on the Master Path Plan to either build pathways pursuant to Town standards and dedicate a pathway easement for public use or pay the Pathway Impact Fee encourages construction of more pathways.
SECTION II. AMENDMENT OF CODE.
Article 6 of Chapter 2, Title 10, of the Los Altos Hills Municipal Code, are hereby amended to read as set forth in “Exhibit A” to this Ordinance, which is hereby incorporated as though set forth in full herein.
SECTION III. SEVERABILITY.
If any provision of this ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this ordinance, including the application of such part or provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this ordinance are severable. The City Council of the Town of Los Altos Hills hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.
SECTION IV. EFFECTIVE DATE AND PUBLICATION.
Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk’s Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk’s Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting.
This Ordinance shall become effective thirty (30) days from and after its adoption.
INTRODUCED: September 18, 2025
PASSED: ___________, 2025
AYES:
NOES:
ABSTENTIONS:
ABSENT:
BY:
Kavita Tankha, Mayor
ATTEST:
Arika Birdsong-Miller, City Clerk
APPROVED AS TO FORM:
_________________________
City Attorney
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EXHIBIT A
Revisions to Article 6, “Pathway Dedication, Maintenance and Improvement” of Chapter 2 of Title 10
Sections 10-2.606 and 10-2.608 are amended as follows, with additions in red double underline and deletions in strikethrough. Sections, subsections, paragraphs, and texts not modified by this amendment are not included below and shall remain in full force and effect.
Section 10-2.606 Payment of pathway fees and/or dedication construction of pathways easement.
Whenever a site development and/or a building permit is requested for a main residence, an accessory dwelling unit, an addition to a structure of at least 900 square feet of "habitable" floor area (including cumulative additions of 900 or more square feet of habitable floor area made over a period of 10 year(s)), or a barn or stable for equestrian use of at least 900 square feet in floor area, on a property which is designated on the Master Path Plan for an off-road pathway or for a roadside pathway, but where all or a portion of such roadside path cannot feasibly be located within the existing public or private right-of-way, the Town Site Development Authority may require dedication of a pathway easement for public use and the payment of pathway fees pursuant to Section 10-2.608 Pathway fee. The Town may waive and/or dedication of an easement for public use the pathway fee with the construction of the pathway per Town Standards by the property owner or developer and by granting the required public pathway on the public right-of-way or the property as part of the Town's pathway system according to the guidelines contained in the Pathway Element of the General Plan. Pathway easements shall be required within emergency road easements. In addition, the following guidelines apply:
(a) An easement should generally be located along the boundary of a property; (b) The easement shall be located so as to connect to existing or future pathway segments at the boundaries of a property; and
(c) The easement shall not be located on terrain that cannot be safely or conveniently traversed by pedestrians or equestrians.
Section 10-2.608 Pathway fee.
A site development and/or building permit for a lot on which no path is needed and on which is to be constructed a main residence, an accessory dwelling unit, an addition to a structure of at least 900 square feet of "habitable" floor area (including cumulative additions of 900 or more square feet of habitable floor area made over a period of 10 years), or a barn or stable for equestrian use of at least 900 square feet in floor area shall be assessed a pathway fee, the amount of which shall be fixed by Council resolution as a development impact fee pursuant to the Mitigation Fee Act (AB 1600) ( Section 66000 et seq.). For purposes of assessing the pathway fee, "habitable" floor area does not include additions or improvements for garage and patio spaces kitchen and dining rooms, entryways, foyers, hallways, stairways, or elevators. Pathway fees collected shall be
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deposited in the Town's pathway fund. No fee shall be assessed If the a lot has been assessed a pathway fee and has paid a fee or constructed and dedicated a pathway per Town Standards pursuant to Section 9-1.1112 of the Subdivision Ordinance, a pathway fee shall be assessed only on a net increase to the “habitable” and barn or stable floor area.
ORDINANCE NO.
381
ORDINANCE OF THE
TOWN OF LOS ALTOS HILLS
AMENDING THE MUNICIPAL CODE TO PROVIDE
FOR A PATHWAY FUND AND TO REVISE REQUIREMENTS
FOR PATHWAY EASEMENTS, CONSTRUCTION, AND IN-LIEU FEES
WHEREAS, the Town has amended the Pathway Element of the Town' s General Plan to reflect current facts, goals, policies and laws; and
WHEREAS, the City Council wishes to amend the Municipal Code to be consistent with the recently amended Pathway Element;,
NOW, THEREFORE, the City Council of the Town of Los Altos Hills does ORDAIN as follows:
1. Addition to Code. Article 3 ( Pathway Fund) is hereby added to Chapter 3 ( Funds) of Title 3 ( Finance) of the Los Altos Hills Municipal Code to read:
Article 3. Pathway Fund
Section 3- 3. 301 Established.
There is hereby established a special fund to be known at the "Pathway Fund." Section 3- 3. 302 Deposits
All funds collected pursuant to the provisions of Section 9- 1. 1112 and 10- 2.608 shall be deposited into the Pathway Fund.
Section 3- 3. 303 Expenditures
All funds received and held in the Pathway Fund shall be used exclusively for the maintenance, repair, construction and acquisition of property for the Town's pathway system."
2. Amendment of Code. Section 9- 1. 1112 of Article 11 ( Improvements) of Chapter 1 ( Subdivisions) of Title 9 ( Subdivisions and Plan Lines) ofthe Los Altos Hills Municipal Code is hereby amended to read:
Section 9- 1. 1112 Pathways
Every subdivider shall dedicate pathway easements and construct paths to Town standards when such dedications and construction requirements are a condition of ITEM 7A Attachment 3
r
approval of the tentative subdivision or parcel map, consistent with the Pathway Element of the General Plan and the Master Path Plan. Any lot in the subdivision that does not contain a path shall be assessed a pathway fee, the amount ofwhich shall be fixed by Council resolution. Funds collected shall be deposited in the Town' s Pathway Fund."
3. Addition to Code. Section 10- 1. 226a( Habitable floor area) is hereby added to Article 2 ( Definitions) of Chapter 1 ( Zoning) of Title 10 ( Zoning and Site Development) ofthe Los Altos Hills Municipal Code to read:
Section 104. 226a. Habitable floor area.
Habitable floor area' shall mean floor area, as defined in Section 10- 1. 223 of the Zoning Code, which includes provisions for space heating, with floor to ceiling heights in excess of seven( 7) feet, and is intended for living purposes for human occupancy. ' Habitable floor area' shall include, but is not limited to, bedrooms, bathrooms, kitchens, living, family, and dining rooms, office/ study areas, game rooms, Poolhouses, or similar use areas, as well as entry foyers, hallways, stairs, etc., which connect such areas. Floor area clearly intended for garage or storage use, barns or stables ( excluding any habitable portion of the building), and basements and attics with floor to ceiling heights of less than 7 feet are not considered' habitable."'
4. Amendment of Code. Section 10- 2.606 ( Dedication ofPathway Easements) of Article 6 ( Pathway Dedication, Maintenance and Improvement) of Chapter 2 ( Site Development) of Title 10 ( Zoning and.Site Development) of the Los Altos Hills Municipal Code is hereby amended to read:
Section 10- 2. 606 Dedication of Pathway Easements.
Whenever a site development permit is requested for a main residence, a secondary dwelling, an addition to a structure of at least 900 square feet of" habitable" floor area including cumulative additions of 900 or more square feet of habitable floor area), or a barn or stable of at least 900 square feet in floor area, on a property which is designated on the Master Path Plan for an off-road pathway or for a roadside pathway, but where all or a portion of such roadside path cannot feasibly be located within the existing public or private right- of-way, the Site Development Authority may require the dedication of an easement for public use as part ofthe Town's pathway system according to the guidelines contained in the Pathway Element of the General Plan. Pathway easements shall be required within emergency road easements. In addition, the following guidelines apply:
a) An easement should generally be located along the boundary of a property;
b) The easement shall be located so as to' connect to existing or future pathway segments at the boundaries of a property; and
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c) . The easement shall not be located on terrain that cannot be safely or conveniently traversed by pedestrians or equestrians."
5. Amendment of Code. Section 10- 2. 607 ( Construction of Pathways) of Article 6 Pathway, Dedication, Maintenance and Improvement) of Chapter 2 ( Site Development) of Title 10 ( Zoning and Site Development) of the Los Altos Hills Municipal Code is hereby amended to read:
Section 10- 2. 607 Construction of Pathways.
The Site Development Authority may require the construction of pathway improvements within dedicated easements or public rights- of-way for public' use as part of the Town' s pathway system as shown on the Master Pathway Plan; and according to the engineering standards of the Town, for.any site development permit for a main residence, a secondary dwelling, an addition to a structure of at least 900 square feet of" habitable" floor area including cumulative additions of 900 or more square feet of habitable floor area), or of a barn or stable of at least 900 square feet in floor area."
6. Addition to Code. Section 10- 2. 608 (Pathway Fee) of Article 6 ( Pathway Dedication, Maintenance. and' Improvement) of Chapter 2 ( Site Development) of Title 10 ( Zoning and Site Development) of the Los Altos Hills Municipal Code is hereby added to read:
Section 10- 2.608 Pathway Fee.
A site development permit for a lot on which no path is needed and on which is to be constructed a main residence, a secondary dwelling, an addition to a structure of at least
90.0 square feet of" habitable" floor area( including cumulative additions of 900 or more square feet of habitable floor area), or a barn or stable of at least 900 square feet in floor area shall be assessed a pathway fee, the amount of which shall be fixed by Council resolution. Pathway fees collected shall be deposited in-the Town's Pathway Fund. No fee shall be assessed ifthe lot has been assessed- and has paid a fee pursuant to Section 9-
1. 1112 ofthe Subdivision Ordinance."
7. Amendment of Code. Section 10- 2. 1314 of Article 13 ( Administration and Enforcement) of Chapter 2 ( Site Development) of Title 10 ( Zoning and Site Development) of the Los Altos Hills Municipal Code is hereby amended to read:
Section 10- 2. 1314 Fees.'
There shall be paid for each site development and zoning permit a nonrefundable filing fee and deposit, the amount of which shall be fixed by Council resolution." 3 —
8. Severability.
If any part ofthis ordinance is held to be invalid or inapplicable to any situation by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions ofthis ordinance or the applicability ofthis ordinance to other situations.
9. Environmental Review.
Pursuant to the California Environmental Quality Act, the Council adopts a negative declaration and finds that this ordinance will result in no significant environmental impacts.
10. Effective Date; Posting.
This ordinance shall become effective thirty ( 30) days from the date of its passage, and shall be posted within the Town of Los Altos Hills in three( 3) public places.
INTRODUCED: March 6, 1996
PASSED: March 20, 1996
AYES: Mayor Siegel and Councilmembers Dauber, Hubbard and Johnson
NOES: Councihnember Casey
ABSTENTIONS: None
ABSENT: None
By:
ATTEST: Mayor Siege
City& erk
AP ROVED AS TO FORM:
City Attorney
14949/ 006/ 1048312. 1
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ITEM 7A Attachment 4
ITEM 7A Attachment 5
RESOLUTION 77- 23
A RESOLUTION OF THE CITY COUNCIL OF THE
TOWN OF LOS ALTOS HILLS UPDATING THE FY 2023- 24 PLANNING, BUILDING,
AND ENGINEERING FEE SCHEDULES TO ADD AND UPDATE DEPOSIT AMOUNTS RELATED TO: NPDES PERMIT C. 3 REVIEW AND INSPECTION; SEWER CAPACITYAMPACT/ RATE ANALYSIS; SIGHT DISTANCE AND TRAFFIC STUDY PEER REVIEW; TRAFFIC CONTROL PLAN REVIEW, MISCELLANEOUS ENGINEERING STAFF REVIEW, AND PEER REVIEW; AND TOWN ATTORNEY
LAND USE REVIEW, AND DETERMINATION THAT THE PROPOSED
AMENDMENTS ARE NOT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT
WHEREAS, the Town of Los Altos Hills has established certain fees and charges for Town services, including those that apply to the filing, accepting, reviewing, approving, or issuing of an application, permit, subdivision maps, or entitlement; and WHEREAS, these fees and charges are collected to recover the Town' s reasonable cost of providing the service or of performing the functions or regulatory activity for which the fees are charged, as applicable, and which are not levied for general revenue purposes, for the purposes of defraying impacts from developments on public facilities, and are not special taxes as defined in Article 3. 5 of the California Government Code; and
WHEREAS, consistent with California Government Code sections 66016, 66017, and related applicable statutes, the fees and charges, as well as deposits, are for actual cost recover and does not exceed the amount reasonably required to administer the processing of such application, permit or entitlement and the estimated reasonable cost ofthe Town providing services for such purposes; and
WHEREAS, on August 17, 2023, the City Council held a duly noticed public hearing in compliance with California Government Code sections 6062a, 66016, 66017 and 66018, at which public testimony and written testimony was received, to consider adopting the FY 2023- 24 Fee Schedule Updates for Site Development Charges; and
WHEREAS, this action is exempt from environmental review pursuant to Section 15273 of the California Environmental Quality Act as it does not qualify as a " Project" as defined in CEQA Guidelines section 15378( b)"; and
WHEREAS, the City Council desires to implement the updated FY2023- 24 Fee Schedule Updates, detailed in " Exhibit A," which will become effective on October 21, 2023, consistent with Californian Government Code Section 66017.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the Town of Los Altos Hills hereby finds the foregoing recitals are true and correct and incorporated herein, and adopts the FY 2023- 24 Fee Schedule Updates for Site Development Charges as set forth in " Exhibit A" to this Resolution and determine that the amendments are not subject to the California Environmental Quality Act. Development fees contained herein shall become effective no sooner than 60 days following final passage and adoption of this Resolution and shall remain in effect until a new Resolution amending the same is adopted by the City Council.
Resolution 77- 23 Page 1
ITEM 7A Attachment 6