Agenda packet — Palo Alto City Council, June 16, 2025 (part 3 of 6)

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1 COMPENSATION PLAN FOR THE CITY OF PALO ALTO

Management and Professional Personnel
As used in this Plan, the term “Management and Professional” refers to all employees, including Confidential employees, previously classified as “Management and Confidential” by the City. This group will hereafter be identified as “Management and Professional” personnel. the employees within classifications listed in the Management and Professional Salary Schedule.

SECTION I. COMPENSATION

This section applies to all management and professional employees and does not include Council Members or Council- appointed officers. Each Council -appointed officer shall be the responsible decision-maker under this Plan for those employees in departments under his/hertheir control.

A. MANAGEMENT AND PROFESSIONAL COMPENSATION POLICY

The City's policy for management and professional compensation is to establish and maintain a general structure based on marketplace norms and internal job alignment with broad compensation grades and ranges. Structures and ranges will beare reviewed and updated as necessary based on marketplace survey data, internal relationships, and City financial conditions.

Individual compensation adjustments will be considered by the Council-appointed officer based on (1) performance factors including achievement of predetermined objectives; (2) pay structure adjustments; and (3) City financial conditions.

B. BASIC PLAN ELEMENTS

1. Structure.

The compensation plan includes separate multi -grade structures for both management and professional employees. Each grade will have a salary range with a mid-point which is 20% above the minimum, and 20% below the maximum of the range. All management and professional positions classifications will be are assigned an appropriate pay grade range based on salary survey data and internal relationships. Actual salary within the range for individual employees is determined by experience and performance.

2. Compensation Adjustment Authorization.

Council-appointed officers are authorized to pay salaries in accordance with this plan to non - Council-appointed management and professional employees within the City Council authorized salary schedule.

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1 The Council -appointed officers are authorized to establish such administrative rules as are necessary to implement the Management and Professional Salary Plan subject to the limitations of the approved compensation adjustment authorization and the approved salary schedule.

The City Manager may propose as part of the budget process for Council approval of a compensation adjustment based on (1) competitive market data, (2) changes in internal position relationships, (3) the City's ability to pay, and (4) a recommendation received from the Chief People Officer . Council-appointed officers are authorized to pay salaries in accordance with this plan to non -Council-appointed management and professional employees in an amount not to exceed the aggregate of approved management and professional positions in the Table of Organization for the applicable fiscal year.

C. Effective the first pay period following Council adoption of this plan all classifications will receive market -based increases as outlined in the salary schedule. Each Council Appointed Officer will determine the method by which the market adjustment is applied to current employees within their authority.

D. Effective the first full pay period following July 1, 2023, all classifications will receive a four percent (4%) salary increase. Effective the first full pay period following July 1, 2024, all classifications will receive a four percent (4%) salary increase.

E. Effective the first pay period following C ouncil adoption of this plan all classifications will receive a one hundred dollar ($100) monthly flexible compensation payment built into the base hourly rate of pay. Employee s can utilize this cash payment to cover insurance premiums or contribute to Flexible spending accounts/457 deferred compensation plans.

C. GENERAL SALARY INCREASES

As part of the budget process and subject to for Council approval, of the City Manager may propose a compensation adjustment based on (1) competitive market data, (2) changes in internal position relationships, (3) the City's ability to pay, and (4) a recommendation received from the Human Resources Director.

Effective the first full pay period following July 1, 2025, salary ranges and salaries of all classifications will be increased by three percent (3.0%).

Effective the first full pay period following July 1, 2026, salary ranges and salaries of all classifications will be increased by three percent (3.0%).

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1 classifications will be increased by three percent (3.0%).

Effective the first pay period of January 2024 , all classifications will received an additional one two hundred dollars ($2100) monthly flexible compensation payment built into base hourly rate of pay.

a) Base Compensation. Compensation for management and professional employees includes bi-weekly base salary and is paid on a continuing basis. On a fiscal year basis , the bi-weekly base salary must fall within pay grade limits of no less than 20% below the mid-point and no more than 20% above the mid-point.

D. ANNUAL PERFORMANCE REVIEW AND MERIT INCREASES

Base Individual base salary merit increases are earned and authorized in accordance with administrative practices based upon growth within the position, and performance, and which must meet or exceed position standards defined through the performance planning and appraisal process described in subsection b below, the salary structure and the City’s ability to payfinancial conditions. Merit pay adjustments are at the discretion of the Council - Appointed Officers and are at an amounts are set on an annual basis during the fiscal year budget process.

Annually, performance appraisals will be conducted after the conclusion of the fiscal year for all employees who have been with the City for over one year . Employees in their first year as a Management and Professional employee with the City will receive their performance appraisal after 12 months.

These appraisals will review the performance over the prior fiscal year and provide goals and expectations for the new fiscal year. Performance plans are jointly prepared by the employee and supervisor with the concurrence of the department head or Council -appointed officer. The performance plans shall contain measurable objectives which place special emphasis on position description duties or specific assignments. Progress toward meeting objectives shall be monitored periodically.

Management/professional employees who have received an overall rating of "Meets", “Higher” or "Exceeds" expectations of “meets expectation s” or above on their annual review and who have not been on a performance improvement plan during the preceding fiscal year will be eligible for a Meritn adjustment increase to base compensation, if applicable for that year.

Recommended ratings will be provided to Department Heads, the Human Resources Department, and the appropriate Council- Appointed Officer for final review.

Nothing herein shall preclude an employee's manager from awarding recommending a mid - point adjustment increase to an employee on a performance plan at a later date should employee's performance improve.

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1 E. CLASSIFICATION COMPENSATION REVIEW

The City Classifications will be periodically survey ed classifications to determine their competitive market placement. The results of a total compensation study may indicate that a pay range be adjusted, or that no change takes place. Such adjustments may only affect the salary administration framework. No individual salaries will be automatically changed because of structural adjustments.

A department director may request that Human Resources reevaluate a classification(s) in their department based on significant and permanent changes in job content. In doing so the director will supply needed information and will provide a position description questionnaire as requested. The Human Resources director or designee will respond to such requests within their discretion. Individual employees are not eligible to request a classification compensation review.

Performance Planning and Appraisal. Performance appraisals will be conducted at the end of each fiscal year during the months of July through September 30 each year prior to determining individual employee fixed compensation. This process includes both review of previous performance plan and preparation of the performance plan for the next planning period (usually the fiscal year). Performance plans are jointly prepared by the employee and supervisor with the concurrence of the department head or Council-appointed officer. The performance plans shall contain measurable objectives which place special emphasis on position description duties or specific assignments. Progress toward meeting objectives shall be monitored periodically. The performance appraisals should be implemented in a manner that will achieve the following objectives:

Define the employee’s job duties and expected level of performance for the next review period to ensure that both the employee and supervisor have a clear understanding of the employee’s role and responsibilities;
Evaluate and document past performance to serve as a basis for establishing and obtaining future performance standards/objectives;
Facilitate two-way communication and understanding between the employee and his or her supervisor;
Counsel and encourage employees to work toward a learning development plan and realize their full potential;
Establish future work plan objectives.

Work plans should include job related projects or special goals related to regular job duties when applicable. At the conclusion of the fiscal year (or review period), supervisors shall make a final determination of the overall performance rating.

Recommendations shall be forwarded to department heads and to the Chief People Officer or appropriate Council appointed officer who will then determine individual fixed adjustments according to the provisions of the compensation plan. Each department will ensure that metrics Item 8
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1 tie to the performance appraisal. The performance planning and appraisal process should be completed by September 30.

MANAGEMENT AND PROFESSIONAL COMPENSATION ADJUSTMENT AUTHORIZATION

Council-appointed officers are authorized to pay salaries in accordance with this plan to non- Council-appointed management and professional employees in an amount not to exceed the aggregate of approved management and professional positions in the Table of Organization for the applicable fiscal year.

Individual management and professional compensation authorized by a Council-appointed officer under the Management and Professional Compensation Plan may not be less than 20% below nor more than 20% above the mid-point for the individual position grades authorized in Salary Schedule attached.

The Council-appointed officers are authorized to establish such administrative rules as are necessary to implement the Management and Professional Salary Plan subject to the limitations of the approved compensation adjustment authorization and the approved grade and mid-point structure.

NNotwithstanding any other provision of this Compensation Plan, in the event a downward adjustment of a position grade assignment indicates a reduction in the established salary of an individual employee, the Council-appointed officer may, if circumstances warrant, continue the salary for such employee in an amount in excess of the revised grade limit for a reasonable period of time. Such interim salary rates shall be defined as "Y-rates." Employees in “Y-rated” positions shall not be eligible for any increase to base salary unless and until the amount of the “Y-rated” salary is equal to or less than the published pay rates. Employees assigned to work above class duties shall not be eligible for “Y-rated” pay on conclusion of a work above class assignment.

SECTION II. SPECIAL COMPENSATION

This section applies to all eligible regular management and professional positions including Council- Appointed Officers as applicable and including Council Members where indicated. Eligibility shall be in conformance with the Merit Rules and Regulations , and Administrative Directives Personnel Policies and Administrative guidance issued by the City Manager for the purposes of clarification and interpretation.

A. OVERTIME

Compensation for overtime work shall be in conformance with the Merit Rules and Regulations and Item 8
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1 Policies and Procedures.

G. Floating Holiday – Days of Historical Significance

Employees will beare provided one floating holiday each calendar year in acknowledgement of days of historical significance. The employee wWith prior approval from their supervisor, employees can use this floating holiday at any time during the year. This holiday has no cash value and will expire if unused.

H. IN LIEU HOLIDAY PAY

Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. If the holiday falls on a non- workday for an exempt employee, the employee may, with supervisory approval, take another day off within the pay period or the following pay period.

I.F. WORKING ABOVE CLASSIFICATION PAY

Where management and professional employees, on a temporary basis, are assigned to perform all significant duties of a higher classification for a period of one month or more, the City Manager may authorize payment within the range of the higher classification for the specified time frame. All qualified and interested employees within a work group should be considered for the working above classification opportunity whenever feasible. Working above classification will not exceed six months, unless renewed at the discretion of the City Manager. On expiration of that timeframe, working above classification pay will cease and the employee will return to his or hertheir former pay level. Working above classification pay is not to exceed 10% more than the employee’s current salary and shall be documented on a Personnel Action Form, with a description of the additional duties in the higher classification to be performed and an end date.

J.G. STAND-BY PAY

Employees eligible for overtime may be entitled to stand-by pay, approved by the City Manager on a case by case basis, in extreme circumstances involving unavailability of non -management staff.

Compensation is as follows:

Monday through Friday $40 per day
Saturday, Sunday, Holidays $58 per day

K.H. CALL OUT PAY

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1 classifications will be compensated for Call Out as outlined below with Management approval (and will not be eligible for overtime pay). Call Out applies when: (1) an employee previously left City premises, (2) is called back to the work location outside of regularly scheduled working hours, and (3) the Call Back is for an emergency arising out of situations involving real or potential loss of service, property or personal danger. Employees called back will be expected to respond directly to the location of the problem.

Compensation is per Call Out as reported on timecard and will be paid as follows:

Monday through Friday: $140 per day
Saturday and Sunday: $200 per day

L.I. NIGHT SHIFT PREMIUM

Night shift differential shall be paid at the rate of five percent (5%) to regular full -time employees who are regularly assigned to shift work between 6:00 p.m. and 8:00 a.m., or to employees who are temporarily assigned to work a full shift between 6:00 p.m. and 8:00 a.m.

M.J. UNIFORM PURCHASE PLAN - SWORN POLICE, FIRE PERSONNEL, and OPEN SPACE

PERSONNEL

Uniforms, including cleaning, will be provided with replacement provisions on an as-needed basis in conformance with department policy.

N.K. SAFETY DIFFERENTIALS

1. Police Department - Personnel Development Program
Pursuant to administrative rules governing eligibility and qualification, one of the following differentials, whichever is higher, may be granted to sworn police personnel:

A. P.O.S.T. Intermediate Certificate: five percent (5%) above base salary B. P.O.S.T. Advanced Certificate: seven and a half (7 ½%) above base salary

2. Fire Department - EMT Differential

Pursuant to administrative rules governing eligibility and qualification, the following differential may be granted to sworn Fire personnel:

A. EMT Differential: three percent (3%) above base salary

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1 SECTION III. BENEFIT PROGRAMS

This section applies to all eligible regular management and professional positions including Council- Appointed Officers as applicable and including Council Members f or Section III A – I as applicable.

Eligibility shall be in conformance with the Merit Rules and Regulations, Personnel Policies and Administrative guidance issued by the City Manager for the purposes of clarification and interpretation.

A. MEDICAL

1. GROUP INSURANCE

2. 3.1. Effective Date of Coverage for New Employees

For newly hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, long term disability and life insurance plans if these benefits are elected.

Dual coverage. When a City employee is married to or has a registered domestic partner with the California Secretary of State with another City employee, each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered by only one spouse.

4.2. Active Employee Health Plan

a) During the term of this compensation plan, the maximum City contribution towards medical premiums for eligible full- time employees per category shall be up to a maximum of the following for any plan:

Medical Premium Category (Coverage Level) Maximum City Contribution Effective January 1, 2020July 1, 2025
Single (EE only)

$871943
2- Party (EE +1)

$17421,885
Family (EE + 2 or more)

$22602,444

Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the following percentages:

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1 • Employee only: 2%
• Employee plus one: 3%
• Employee family: 5%

Medical Premium Category Total Maximum City Contribution (inclusive of PEMHCA contribution*)
effective January 1, 2027
Employee only
Employee plus one
Employee family
$962
$1,942
$2,566

*The PEMHCA minimum changes per statutory determination. Any increases to the PEMHCA minimum during the term of this plan will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the amount listed in the “Total Maximum City Contribution” columns above.

The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work.

b) Coverage For Domestic Partners
1) Domestic Partnership Registered with the California Secretary of State: Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State and will be eligible for the Alternative Medical Benefit Program in paragraph 3 below.

2) Domestic Partnership Not Registered with the California Secretary of State: Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the People Strategy and Operations Human Resources Department, will be eligible for a stipend of up to two hundred and eighty four dollars ($284.00) per month toward the cost of an individual health plan.

Evidence of premium payment will be required with request for reimbursement.

c) Alternative Medical Benefit Program

If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through another non- City of Palo Alto employer- sponsored or association medical plan, the employee may choose to waive his/her their right to the City of Palo Alto’s medical insurance and receive cash payments in the amount of $284.00. Council Members are Item 8
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1 not eligible for the Alternative Medical Benefit Program.

Examples of waivers eligible for this payment are:
• Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or register his or her domestic partner with the California Secretary of State and waives medical coverage for the spouse or domestic partner; or
• Employee has additional eligible dependents and waives family -level medical coverage.

Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284.00) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. When a City employee is married to or has a registered domestic partner with the California Secretary of State w ith another City employee, each shall only be eligible once (as an individual or as a spouse of the other City employee, but not both) and not eligible for a waiver.

Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the

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1 employee’s failure to notify the City of a change in status. Employees are required to annually submit waiver forms in order to continue to receive these payments. Failure to submit annual waiver may result in loss of this alternative medical benefit.

B. RETIREE HEALTH PLAN

a) Employees Hired Prior to January 1, 2004
Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees” Medical and Hospital Care Act. The City’s monthly employer contribution for each employee retiring on or after January 1, 2007 and prior to March 31, 2011 shall be the amount necessary to pay for the cost of his or her enrollment in a hea lth benefits plan up to the monthly premium for the second most expensive plan offered to management and professional personnel during the contract term (among the existing array of plans.) The City’s contribution for an employee hired before January 1, 20 04 who retires on or after March 30, 2011 shall be the same contribution amount it makes from time to time for active City employees.

b) Employees Hired Post after January 1, 2004 – 1/1/04 Hires For those Management and professional employees hired after January 1, 2004, the PERS law vesting schedule set forth in Government Code section 22893 will apply. Under that law, an employee is eligible for 50% of the specified employer health premium contribution after ten (10) years of service credit, provided at least five (5) of those years were performed at the City of Palo Alto. After ten (10) years of service credit, each additional service credit year increases the employer contribution percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon retirement for 100% of the specified employer contribution and 90% of their dependent coverage. The City of Palo Alto’s health premium contribution for eligible post – 1/1/04 hiresemployees shall be the minimum contribution set by PERS under section 22893 based on a weighted average of available health plan premiums.

c) On July 6, 2016 the Effective upon ratification and adoption of this compensation plan, the City shall provided active Management employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the Human Resources department of their election in writing no later than 90 days following the ratification and adoption of this compensation plan.

C. DENTAL PLAN

1. a) The City will maintain the present level of benefits on the City-sponsored dental program. The City provides a base dental plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a dental Item 8
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1 “buy-up” plan.
a)b) The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled for coverage under the base dental plan. Dependents will include domestic partners. Employees will be responsible for premium payments required to enroll in the “buy up” dental plan.

The City’s Dental Plan provides the following:

Maximum Benefits per Calendar Year- $2,000 per person
Lifetime Maximum for Orthodontics- The City will pay up to $2,000.00 for orthodontia coverage (not included in annual dental maximum) Major Dental Services 50% UCR*
Orthodontics 50% UCR*
Basic Benefits (All other covered services)
First Calendar Year of Eligibility 70% UCR*
Subsequent Calendar Years 70%-100%
*Usual, Customary, and Reasonable
Composite (tooth covered) fillings for posterior teeth

For each dental plan member, the percentage of coverage for basic benefits will begin at 70% for the first calendar year of coverage and increase by 10% (up to a maximum of 100%) effective the first day of the next calendar year as long as the member utilizes the plan at least once during the current year. Per the Delta Dental contract effective October 1, 2005, if the member does not utilize the plan during the current year, the percentage of coverage for the next calendar year shall remain unchanged from the current year.

If a dental plan member ever loses coverage under the plan, the applicable percentage of coverage for basic benefits provided during any future period of coverage will commence at 70% as if the dental plan member was a new enrollee. Examples of when a member might lose coverage under the plan would include:

Employee goes on an unpaid leave of absence and elects not to pay the required dental premiums for his/her family’s coverage during the leave.

Employee elects to drop one or more covered dependents from the plan during an open enrollment period so that they might be covered on a spouse’s non- City of Palo Alto dental plan.

The City shall pay covered plan charges on behalf of all eligible employees and dependents. (Domestic partners who are either registered with the Secretary of State or who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department are considered dependents under the plan.) Benefits for regular part -time employees hired or assigned to a part - time schedule will be prorated in accordance with his/her percentage of a full- time work schedule.

The City’s Dental Plan provides the following:

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1 Maximum Benefits per Calendar Year- $2,000 per person Lifetime Maximum for Orthodontics - The City will pay up to $2,000.00 for orthodontia coverage (not included in annual dental maximum)
Major Dental Services 50% UCR*
Orthodontics 50% UCR*
Basic Benefits (All other covered services) First Calendar Year of Eligibility 70% UCR* Subsequent Calendar Years 70%-100%
*Usual, Customary, and Reasonable
Composite (tooth covered) fillings for posterior teeth

If a dental plan member ever loses coverage under the plan, the applicable percentage of coverage for basic benefits provided during any future period of coverage will commence at 70% as if the dental plan member was a new enrollee. Examples of when a memb er might lose coverage under the plan would include:

Employee goes on an unpaid leave of absence and elects not to pay the required dental premiums for his/her family’s coverage during the leave.

Employee elects to drop one or more covered dependents from the plan during an open enrollment period so that they might be covered on a spouse’s non - City of Palo Alto dental plan.

C.D. Basic LIFE INSURANCE

a) Basic Life Insurance
The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no -cost to the employee. AD&D pays an additional amount equal to the employee’s annual basic pay (rounded to the next highest $1,000).

a)b) Supplemental Life And AD&D Insurance

An employee may, at his/hertheir cost, purchase additional voluntary life insurance and additional voluntary AD&D coverage equal to one- or two-times his or hertheir annual salary. The maximum amount of life insurance available to the employee is up to $325500,000 and the maximum amount of AD&D coverage available is up to $325500,000.

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1 Employee may, at their cost, purchase voluntary spousal and child life insurance.

D. LONG TERM DISABILITY INSURANCE

The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of $10,000 per month. The City shall pay the premium for the first $6,000 of base monthly salary. For employees whose base monthly salary exceeds $6,000, the employee shall pay the cost of the required premium based upon their monthly salary between $6,000 and $15,000.

a) For employees whose base monthly salary exceeds $6,000 and who have no eligible dependents covered under the City’s medical, dental or vision plans, the City will pay up to $17.50 per month towards the employee’s cost for LTD coverage.

E. DEPENDENT CARE ASSISTANCE PROGRAM (DCAP ) AND HEALTHCARE FLEXIBLE

SPENDING ACCOUNT (HCFSA)
The City shall continue to provide a Dependent Care Assistance Program (DCAP) and Medical Flexible Spending Accounts (FSA) for employees as permissible under Section 125 of the Internal Revenue Code. Calendar year limits are set by the IRS.

a) DCAP: The City will provide a dependent care assistance program for employees subject to the provisions of applicable law. The program will remain in effect subject to a reasonable minimum participation level and availability of third party administrative services at a reasonable cost. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document.

b) HCFSA: The City will provide healthcare flexible spending program for employees subject to the provision of applicable law. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document.

E.F. VISION CARE

a) The City provides a base vision plan for all eligible employees and dependents.

Additionally, eligible employees will have the option to enroll in a vision “buy -up” plan. The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan.

Employees will be responsible for premium payments required to enroll in the “buy up” vision plan. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners. The City shall provide vision care coverage for employee and dependents. Coverage is administered by Vision Service Plan (VSP). The plan provides an exam every 12 months; lenses every 24 months; frames every 24 months, all Item 8
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1 subject to a $20 co -payment as defined in the Vision Services Benefits Plan A schedule.

a) Benefits for regular part-time employees will be prorated as follows:
b)

Employees hired after January 1, 2004, who will work less than full time, will receive prorated premium costs for vision benefits in accordance with his/her their percentage of a full -time work schedule. Vision benefits for regular part- time employees hired or assigned to a part -time schedule will be prorated in accordance with his/hertheir percentage of a full- time work schedule.

Effective July 1, 1996, dependents include eligible domestic partners who are either registered with the Secretary of State.

F. 9. DEFERRED COMPENSATION
G.

The City will continue to provide a 457 Deferred Compensation Plan for employees to make pre or post tax contributions.

G.H. 10. EMPLOYEE ASSISTANCE PLANEMPLOYEE ASSISTANCE PROGRAM

The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help.

This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online.

H.I.COMMUTE INCENTIVES and PARKING

1. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. Employees hired after June 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage.

2. Alternative Commute Incentives: Employees who qualify may voluntarily elect one commute incentives, including but not limited to the following options, for those using an eligible Item 8
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1 commute alternative on 60% or more of their scheduled work days per month:

a) Public Transit, Parking and Vanpool. The City provides tax-free commute incentives up to the current IRS limit, as may be amended from time to time ., (currently $125/month) are available through the Commuter Check Direct (CCD) website for employees using Bay Area public transportation or riding in a registered vanpool at least 60% of their scheduled work days. .Administration of the Commuter Checkthis benefit shall be subject to the rules and regulations of the third- party administrator.

b) Go Pass. The Go Pass program will offer civic center and other downtown -based employees a Caltrans Go Pass that allows unlimited rides on Caltrain in all zones seven days per week, to any City of Palo Alto employee.

c) Bicycle. The City will provide employees with a tax -free incentive of $20 per month to eligible employees who ride a bicycle to work.

d) Carpool. The City will provide with a taxable incentive of $30 per month to each eligible employee in a carpool with two or more licensed drivers.

e) Walk. The City will provide employees with a taxable incentive of $20 per month to eligible employees who walk to work.

J. LONG TERM DISABILITY INSURANCE

I.K. 11. EXCESS BENEFIT

This benefit is designed to meet the requirements of Section 125 of the Internal Revenue Code, with exception of Gym or Health Club Membership. Effective January 1, 2026, E every calendar year, each employee will be provided with $ 3,000 2,500 that they can designate among the following options, subject to caps pursuant to IRS regulations:

a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents, subject to the provision of applicable law . which are not covered or reimbursed by any other source, including existing City -sponsored plans. This includes prescribed medications and copayments. However, nonprescription dietary supplements (e.g. vitamins, etc.) toiletries (e.g. toothpaste), cosmetics (e.g. face Item 8
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1 cream), and items used for cosmetic purposes (e.g. Rogaine) are not acceptable.

Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the provision of applicable law. subject to the following limits: Dependent care expenses will be reimbursed only to the extent that the amount of such expenses reimbursed under this Management Benefit Program, when added to the amount (if any) of annual dependent care expenses that the participant has elected under the City's Flexible Benefits Plan, do not exceed the maximum permitted under the DCAP.
b)
b)
c) The annual amount submitted for reimbursement cannot exceed the income of the lower-paid spouse.
d)
e) The expenses must be employment- related expenses for the care of one or more dependents who are under 13 years of age and entitled to a dependent deduction under Internal Revenue Code section 151(e) or a dependent who is physically or mentally incapable of caring for himself or herself.
f)
g) The payments cannot be made to a child under 19 years of age or to a person claimed as a dependent.

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21 h) If the services are provided by a dependent care center, the center must comply with all state and local laws and must provide care for more than six i) (6) individuals (other than a resident of the facility). j)
k) Dependent care expenses not submitted under this section are eligible under the City Dependent Care Assistance Plan (DCAP). However, the maximum amount reimbursed under DCAP will be reduced by any amount reimbursed under the Excess Benefit Plan.

l)c) Non-taxable Professional Development Spending Account. Provides reimbursement for Non-Taxable professional development expenses (e.g., job -related training and education, seminars, training manuals, etc.) to the extent they are not paid or reimbursed under any other plan of the City.

m)d) Gym or Health Club memberships. Provides reimbursement for annual or monthly memberships, including personal trainers. Reimbursement of this expense is taxable to the employee.

e) Deferred Compensation. Provides a one -time contribution to the employee’s City - sponsored 457 Deferred Compensation plan. with either ICMA-RC or Mass Mutual.

Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a “use–it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan.

Specified amounts under this benefit will be applied on a pro-rated basis for employees who are part-time or who are in a management or professional pay status for less than the full fiscal year. Such benefits will be pro -rated in the first year of employm ent (based on hire date) but will not be pro-rated upon separation of employment.

J. SAFETY DIFFERENTIALS

A. P.O.S.T. Intermediate Certificate: five percent (5%) above base salary C. P.O.S.T. Advanced Certificate: seven and a half (7 ½%) above base salary

2. Fire Department - EMT Differential

Pursuant to administrative rules governing eligibility and qualification, the following differential may be granted to sworn Fire personnel:

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22 A. EMT Differential: three percent (3%) above base salary

K.L. MANAGEMENT and PROFESSIONAL BENEFIT PROGRAM PROFESSIONAL

DEVELOPMENT

Management and professional employees are eligible for Sections 1, 2, and 3of the Management Benefit Program below. City Council Members are not eligible for benefits under Section 1 and 2 below.

The purpose of this program is to provide employees with resources to improve and supplement their job and professional skills. Reimbursement for authorized self - improvement activities may be granted each management and professional employee up to a maximum of five hundred dollars ($500) per fiscal year. A departmental training fund of one thousand dollars per employee ($1,000) will be established for subject matter, leadership or other training that the Department Director identifies as a need for employees within that Department.

The following items are eligible for reimbursement:

a) Civic and professional association memberships

b) Conference participation and travel expenses, which must occur within the compensation plan period.

c) Educational programs, books and videos, and tuition reimbursement designed to maintain or improve the employee's skills in performing his or hertheir job or future job opportunities, should support the City’s mission or be necessary to meet the educational requirements for qualification for employment. Permissible educational expenses are refresher courses, courses dealing with current developments, academic or vocational courses, as well as the travel expenses associated with the courses as defined by the City’s travel expense report from the Policy & Procedures Manual Section 1-02 ASD.

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23 d) Professional and trade journal subscriptions not to exceed 12 months.

Approval will be is at the discretion of department head and signature is required on reimbursement form.

Amounts under this professional development program will be pro-rated in the first year of employment or promotion into a position covered by this Compensation Plan

L.M. MEAL ALLOWANCE

Management and professional employees assigned to attend night meetings are eligible to receive reimbursement for up to $ 2038.00 per dinner, or as otherwise defined in Policy 1 - 66/ASD. This provision covers only receipted meals actually taken and submitted for reimbursement.

IV. LEAVES

A. This section applies to all management and professional employees and does not include Council Members or Council-appointed officers.

B.A. SICK LEAVE

a) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50% or more of a bi -weekly pay period. Sick leave shall be accrued at the rate of

3.7 hours per bi -weekly pay period for those employees working a 40 -hour duty schedule. Those assigned work schedules which are greater or lesser than 40 hours will accrue sick leave at the ratio of their work schedule to 40 hours.

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24 b) Employees may use up to thirty (30) 20 hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management.

c) Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and or by Section 609 of the Merit Rules and Regulations. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice.

d) Employees that were hired before December 1, 1983 and who leave the municipal service in good standing, or who die while employed in good standing by the city, and who have 15 or more years of continuous service shall receive compensation for unused sick l eave hours in a sum equal to two and one -half percent (2½%) of their unused sick leave hours multiplied by their years of continuous service and their basic hourly rate of pay at termination. Full sick leave accrual will be paid in the event of termination due to disability. See Merit System Rules and Regulations, Chapter 6, Section 609.

e)d) Up to nine (9) days of s Sick leave per calendar year may be used for illness in the immediate family, including a registered domestic partner or other individuals required by applicable law.

f) Management and Professional employees eligible, as specified above if hired before December 1, 1983, to be compensated for sick leave may annually convert sick leave hours in excess of 600 to cash or deferred compensation, according to the formula set forth above, up to a maximum of $2,000 per fiscal year.

g)e) In accordance with the City Merit Rules and Regulations, a new employee may, if necessary, use up to 48 hours or shift equivalent of sick leave at any time during the first six (6) months of employment.

B. HOLIDAY

The following holidays are recognized as municipal holidays for pay purposes, and regular, employees shall have these days off with pay, except as otherwise provided in these rules:

January 1 Veterans' Day, November 11
Third Monday in January Thanksgiving Day
Third Monday in February Day after Thanksgiving Day
Last Monday in May December 25
July 4th Either December 24, or December 31 as provided below First Monday in September
Second Monday in October
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25 Employees shall be excused with pay for the full work shift on either December 24 or December 31, provided that City facilities remain open with reduced staffing levels as determined by the various departments. Neither day shall be considered a holiday for purposes of premium pay. Employees who are not excused pursuant to this provision shall have one shift of vacation credit added to their accrual.

In the event that any of the aforementioned days, except December 24 or December 31, fall on a Sunday, the following Monday shall be considered a holiday. In the event that any of the aforementioned days falls on a Saturday, the preceding Friday shall be considered a holiday for pay purposes. If December 24 and 31 fall on Sunday, the preceding Friday will be designated for purposes of excused time off. Exceptions to this provision may be authorized by the City Manager to conform to various memoranda of understanding.

B. IN LIEU HOLIDAY PAY

Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. If the holiday falls on a non -workday for an exempt employee, the employee may, with supervisory approval, take another day off within the pay period or the following pay period.

C. MANAGEMENT ANNUAL LEAVE

a) Exempt Employees

Regular management and professional exempt employees will be credited with 80 hours of annual leave. This leave is granted in recognition of the extra hours Management and Professional employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash , or taken as deferred compensation. When time off is taken under this provision, 10 -hour shift workers will receive one shift off for each 8 hours charged; 24-hour shift workers will receive one-half (½) shift off for each 8 hours charged.

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26 In 2012, the City transitioned this benefit from a fiscal to calendar year basis for administrative purposes. Beginning in 2013 and each calendar year thereafter, employees will be credited with 80 hours of management annual leave.

Entitlement under this provision will be reduced on a prorated basis for part -time status, or according to the number of months in paid status during the year; employees who have used more than the pro-rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the year will be paid in cash unless a different option as indicated above is elected by the employee.

Council appointed Officers can, at their discretion, award additional management annual leave to employees. Award of additional leave is intended to acknowledge and recognize excellent performance and/or longevity in alignment with the annual merit cycle.

D. VACATION

Vacation will beis accrued when an employee is in pay status and will be is credited on a bi- weekly basis. Total vacation accrual at any one time may not exceed three (3) times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status:

a) Less than nine (9) years. For employees completing less than nine (9) years continuous service: 120 hours vacation leave per year; provided that:

i. The City Manager is authorized to adjust department head annual vacation accrual to provide for a maximum of 160 hours for those hired between July 1, 1996 and June 30, 2001; and

ii. The City manager is authorized to adjust the annual vacation accrual of employees hired on or after July 1, 2001, to provide up to 40 additional hours (i.e., to a maximum annual accrual of 160 hours) for service with a prior employer.

b) Nine (9), but less than fourteen (14) years. For employees completing nine (9), but not more than fourteen (14) years continuous service; 160 hours vacation per year.

c) Fourteen (14), but less than nineteen (19) years. For employees completing fourteen (14), but not more than nineteen (19) years continuous service; 180 hours vacation leave per year.

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27 continuous service; 200 hours vacation leave per year.

e) Employees are eligible to cash out vacation accrual balances in excess of eighty ( 80) hours. An employee may cash out a minimum of eight (8) hours to a maximum of one hundred twenty ( 120) hours of accrued vacation provided the employee has taken eighty (80) vacation hours in the previous twelve ( 12) months and has followed the election procedures set forth in this section.

Employees must elect the number of vacation hours they will cash- out during the next calendar year, up to the maximum of one hundred twenty ( 120) hours. For the 2012 following calendar vacation year, employees will make their election for vacation hours to cash out during the annual Benefit Open Enrollment period. no later than November 1, 2012. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out.

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

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

Employees who do not elect a cash -out amount during the annual Benefit Open Enrollment periodby November 1 of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year. and will not be eligible to cash-out vacation hours in the next tax year

Employees who elect cash-out amounts may request a cash -out at any time in the designated tax year by submitting a cash- out form to payroll. Payroll will complete the cash-out upon request, provided the requested cash-out amount has accrued and is consistent with the am ount the employee pre- designated. If the full amount of hours designated for cash- out is not available at the time of cash -out request, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of each year, Payroll will automatically cash-out the elected amount in a paycheck issued on or after the payroll date including November 1.

E. Bereavement

Leave of absence with pay of three (3) days may be granted an employee by the head of his/hertheir department in the event of death in the employee’s immediate family, which is Item 8
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28 defined for purposes of this section as wife, husband, son, son- in-law, step-son, daughter, daughter-in-law, step -daughter, mother, mother- in-law, father, father- in-law, brother, brother-in-law, sister, sister- in-law, grandmother, grandmother -in-law, grand father, grandfather-in-law, grandchild, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of employee. Such leave shall be at full pay and shall not be charged against the employee’s accrued vacation or sick leave. Employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement.

Requests for leave in excess of three five (5) days shall be subject to the approval of a Council- Appointed Officer for employees under his/hertheir control.

Use of accrued leave credits during leaves of absence.

During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued paid vacation and sick leave in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective.

V. RETIREMENT PENSION

A. MISCELLANEOUS PENSION FORMULAS:
a) Miscellaneous Pension Group A: 2.7% at 55. The City provides retirement benefits under the California Public Employees Retirement System at the level of 2.7% at age 55 for employees hired before July 17, 2010, with a one year final compensation period.

b) Miscellaneous Pension Group B: 2% at 60.: For miscellaneous employees hired on or after July 17, 2010, and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Clas sic” CalPERS members)the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60), with a one (1) year final compensation period.

c) Miscellaneous Pension Group C: 2% at 62. Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two percent at age 62 (2%@62) retirement formula with a three (3) year final compensation period.

B. SAFETY PENSION FORMULAS:

a) Safety Pension Group A: 3% at 50. For Safety members, the City currently offers the CalPERS "3% at 50" full formula (Section 21362.2) benefit, with a one (1) year final Item 8
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29 compensation period.

b) Safety Pension Group B: 3% at 55. Local Fire Safety members newly hired after 6/08/12June 8, 2012 will be placed in the 3%@55 formula. As soon as administratively possible, the City intends to modify the Local Police Safety formula for new hires to 3%@55 formula.

c) Safety Pension Group C: New employees hired on or after January 1, 2013 who are “new members” as defined by the California Public Employees’ Pension Reform Act (PEPRA), will be subject to the terms of that statute, with a three (3) year final compensation period.

C. EMPLOYEE PERS SHARE.

a) Miscellaneous Employee Shares:
a)
• Employees in Miscellaneous Pension Group A shall pay the full eight percent (8%) employee contribution.
•
• Employees in Miscellaneous Pension Group B shall pay the full seven percent (7%) employee contribution.
•
• Employees in Miscellaneous Pension Group C shall pay the employee contribution required by the Public Employees Pension Reform Act, calculated at fifty percent (50%) of the normal cost.

b) Safety Employee Shares:.
a. Employees in Safety Pension Group A shall pay the full nine percent (9%) PERS employee contribution.
b. Employees in Safety Pension Group B shall pay the full eight percent (9%) PERS employee contribution.
a. Employees in Safety Pension Group C shall pay the employee contribution required by the Public Employees Pension Reform Act, calculated at fifty percent (50%) of the normal cost.
b.
b) Employees under the 2%@62 benefit shall pay at least 50 percent of the total normal cost or the same contribution rate as “similarly situated” employees, whichever is higher. a.c.

D. EMPLOYER SHARE

a) Miscellaneous (Non-Safety) Management and Professional:

As soon as administratively possible, but no sooner than pay period including July 1, 2017 each Miscellaneous (non-Safety) Management and Professional employee shall pay one- half percent (0.5%) of their salary toward the employer cost of retirement in acc ordance with Item 8
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30 Section 20516 of the California Government Code.

Effective the first full pay period including July 1, 2018, each Miscellaneous (non -Safety) Management and Professional employee shall pay an additional one -half percent (0.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code.

This will result in Miscellaneous (non -Safety) Management and Professional employees paying a total of one (1) percent of the employer share in addition to their employee contribution.

b) Safety Management:

As soon as administratively possible, but no sooner than pay period including July 1, 2017 each Safety Management employee shall pay one and one-half percent (1.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code.

Effective the first full pay period including July 1, 2018, each Safety Management employee shall pay an additional one and one-half percent (1.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code.

This will result in Safety Management employees paying a total of three (3) percent of the employer share in addition to their employee contribution.

1. Final Compensation.

Final compensation for purposes of retirement shall be as set forth in the City’s contract with CalPERS, including, when applicable, the Government Code Section 20692: Optional Benefit, except as may otherwise be required by PEPRA.

2. Employee PERS contributions shall be made on a tax deferred basis, in accordance with Section 414(h)(2) of the Internal Revenue Code. All provisions of this subsection are subject to and conditioned upon compliance with IRS regulations.

Final compensation for employees under the 2%@62 benefit shall be as set forth in PEPRA, including calculation based on the average of three highest consecutive years and a cap on pensionable compensation based on IRS limits for employers that do not participate in social security.

E. AT-WILL STATUS

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31 other interest in their employment with the City. Notwithstanding any provision in the Merit System Rules and Regulations or any other City rule, policy or procedure, at-will employees have no right to continued employment or pre-or post-disciplinary due process and work at the will and pleasure of the hiring authority (City Council, City Manager or Council -Appointed Officer). Work for an at -will employee may be eliminated and/or the employee may be terminated, or asked to resign, at any time, with or with out cause, upon notice to that employee, and the employee may resign at any time upon written notice to the hiring authority.

a) At-will Management & Professional positions.

Department heads hired after July 1, 2004 and prior to the date of adoption of this plan were hired as at -will employees whose terms of employment are specified by an employment contract that includes a severance package.

Effective on the date of adoption of this planJuly 1, 2012, new employees hired or promoted to department head, assistant department director, and all other positions listed on Attachment B shall be at-will employees.

At-will employees will be eligible for, and shall receive, all regular benefits (i.e., health insurance, PERS contribution to the extent paid by City, etc.) and vacation, sick leave, and management leave as are generally provided to management employees an d described in this compensation plan, as amended from time to time. At -will employees who are terminated or asked to resign shall, upon execution of a release of all claims against the Item 8
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32 City, be eligible for a severance payment equivalent to four (4) weeks of salary and benefits, increasing after completion of the first full year of service by one (1) week for every completed year of service, up to a maximum of 12 weeks. For example, an at-will employee who has completed six (6) years of service would be eligible to receive ten (10) weeks of severance (4 weeks plus 1 week for each year of service). No severance shall be paid if the employee is terminated for serious misconduct involving ab use of his or hertheir office or position, including but not limited to waste, fraud, violation of the law under color of authority, misappropriation of public resources, violence, harassment or discrimination. If the employee is later convicted of a crime involving such abuse of his or her their position the employee shall fully reimburse the City as set forth in Government Code section 53243.3.

b) Provisional employees.

The City has created a program for Provisional employment when funding is available. The program’s purpose is to create limited duration senior management level work for the City Manager’s Office or as designated by the City Manager. A Provisional Employee will be an “at will” employee whose term of employment shall be no more than two (2) years. A Provisional Employee shall be exempt and not eligible to earn overtime. A Provisional Employee will receive limited benefits as specified in an Employment Agreement. Sections I and II of this Compensation Plan shall not apply to Provisional Employees, except as specified by the City Manager.

c) Management and Legal Fellows.

The City has created programs for Management Fellows and Legal Fellows when funding is available. The programs’ purpose is to create limited duration entry level positions for management graduates and lawyers. Fellows will be “at will” employees whose term of employment shall be no more than two (2) years. Fellows shall be PERS exempt to the extent allowed by law, but may receive vacation, sick leave, health care b enefits and other limited benefits, as determined by the City Manager or City Attorney. Sections I and II of this Plan shall not apply to Management and Legal Fellows, except as specified by the City Manager or City Attorney.

F. HIRING PROVISIONS

a) Reimbursement For Relocation Expense

Policy Statement
The City of Palo Alto, in rare instances, may provide a Basic Relocation Benefits Package for new management and professional employees, upon the approval of the City Manager or designated subordinate. In addition, the provision of “Optional Benefits” or portions thereof, may be extended for exceptional circumstances and only the approval of the City Manager or designee, or for Council-appointed officers, the City Council.

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33 The details of the Relocation Expense program are specified in the City’s Relocation Expense policy and all relocation reimbursements shall be subject to the provisions of that policy.

b) Hiring Incentive

Council Appointed Officers may authorize a hiring incentive for critical Management and Professional personnel vacancies. Hiring incentives must be funded through department salary savings.

G. GRIEVANCES REGARDING COUNCIL APPOINTED OFFICERS

Notwithstanding the grievance procedures provided in Chapter 11 of the City of Palo Alto’s Merit System Rules and Regulations, any Management and Professional employee who is supervised by a Council Appointed Officer and has a grievance against that Counci l Appointed Officer or regarding the conduct of that Council Appointed Officer shall, following an attempt to resolve the grievance pursuant to Step One (informal discussion), summarize the grievance regarding the Council Appointed Officer in writing and s ubmit it to the Director of Human Resources for review and resolution using the methods he/shethey considers appropriate.

H. MERIT RULES

The City will include members of the Management/Professional Compensation Committee in discussions regarding revision of the Merit Rules and Regulations.

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34 Attachment B

At-Will Positions Management and Professional Unit

The intent of this provision under the Management/Professional Compensation Plan is to designate classifications at the department head, assistant director, deputy director, division manager and senior professional levels as at -will. The applicable Council Appointed Officer may designate newly created positions at those levels not included on this list as at- will. Existing classifications that shall be at-will include but are not limited to:

Department Heads- All departments
Assistant Directors- All departments
Deputy Directors- All departments
Division Managers - All departments

Administrative Services
Director, Administrative Services/Chief Financial Officer Director, Office of Management & Budget
Assistant Director, Administrative Services
Division Managers such as:

Budget Manager; Finance Manager; Chief
Procurement Officer; Manager, Real
Property; Treasury Manager; Principal
Analyst; Revenue Collections Manager

City Attorney
Chief Assistant City Attorney
Assistant City Attorney
Deputy City Attorney
Legal Fellow

City Clerk
Assistant City Clerk
Deputy City Clerk

City Manager
Assistant City Manager
Chief Operating Officer
Deputy City Manager
Assistant to the City Manager
Assistant to City Manager
Chief Communications Officer
Communications Manager
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35 Chief Transportation Official
Manager Economic Development
Management Fellow

Community Services
Director, Community Services
Assistant Director, Community Services
Manager, Community Services
Manager, Community Services Program Senior

Human Resources
Director of Human Resources/Chief People Officer
Assistant Director, Human Resources
Human Resources Manager
Senior Administrator Human Resources

IT
Director, IT/Chief Information Officer
Manager, Information Technology

Library
Director, Libraries
Assistant Director, Library Services
Division Head, Collection & Technical Services
Manager, Library Services

Planning & Development Services
Director, Planning & Development Services
Assistant Director, Planning & Development Services
Planning Manager Division Manager,
Chief Planning Official
Development Services Director
Chief Building Official
Assistant Building Official
Planning Manager

Public Safety
Chief of Police/Director of Public Safety
Fire Chief /Assistant Public Safety Director
Assistant Police Chief
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36 Emergency Services Director
Deputy Director – Technical Services Division (police department) Deputy Fire Chief

Public Works
Director, Public Works/City Engineer
Assistant Director, Public Works – Environmental Services Assistant Director, Public Works – Public Services
Assistant Director, Public Works – Engineering
Manager, Airport
Manager, Fleet
Water Quality Control Plant Manager

Utilities
Director, Utilities
Chief Operating Officer

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COMPENSATION PLAN
FOR

Management and Professional Personnel
And Council Appointees

Effective July 1, 2025, except where
specifically noted.

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2 SECTION I. COMPENSATION ................................................................................................................ 4 A. MANAGEMENT AND PROFESSIONAL COMPENSATION POLICY ............................................ 4 B. BASIC PLAN ELEMENTS .......................................................................................................... 4 C. GENERAL SALARY INCREASES ................................................................................................ 4 D. ANNUAL PERFORMANCE REVIEW AND MERIT INCREASES ................................................... 5 E. CLASSIFICATION COMPENSATION REVIEW ........................................................................... 6 SECTION II. SPECIAL COMPENSATION............................................................................................... 6 A. OVERTIME .............................................................................................................................. 6 B. WORKING ABOVE CLASSIFICATION PAY ................................................................................ 6 C. STAND-BY PAY ........................................................................................................................ 7 D. CALL OUT PAY ........................................................................................................................ 7 E. NIGHT SHIFT PREMIUM ......................................................................................................... 7 F. UNIFORM PURCHASE PLAN - SWORN POLICE, FIRE PERSONNEL, and OPEN SPACE PERSONNEL ...................................................................................................................................... 7 G. SAFETY DIFFERENTIALS .......................................................................................................... 8 SECTION III. BENEFIT PROGRAMS .................................................................................................. 8 A. MEDICAL ................................................................................................................................. 8 B. RETIREE HEALTH PLAN ......................................................................................................... 11 C. DENTAL ................................................................................................................................. 11 C. LIFE INSURANCE ................................................................................................................... 12 D. DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) AND HEALTHCARE FLEXIBLE SPENDING ACCOUNT (HCFSA) ......................................................................................................................... 12 E. VISION .................................................................................................................................. 12 F. DEFERRED COMPENSATION ................................................................................................ 13 G. EMPLOYEE ASSISTANCE PROGRAM ..................................................................................... 13 H. COMMUTE INCENTIVES and PARKING ................................................................................. 13 I. LONG TERM DISABILITY INSURANCE ................................................................................... 14 J. EXCESS BENEFIT ................................................................................................................... 14 K. PROFESSIONAL DEVELOPMENT ........................................................................................... 15 L. MEAL ALLOWANCE .............................................................................................................. 16 IV. LEAVES .......................................................................................................................................... 16 A. SICK LEAVE ........................................................................................................................... 16 B. HOLIDAY ............................................................................................................................... 16 Item 8
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2 C. IN LIEU HOLIDAY PAY ........................................................................................................... 17 D. MANAGEMENT ANNUAL LEAVE ........................................................................................... 17 E. VACATION ............................................................................................................................ 18 F. BEREAVEMENT ..................................................................................................................... 19 V. RETIREMENT .................................................................................................................................. 19 A. MISCELLANEOUS PENSION FORMULAS: .............................................................................. 19 B. SAFETY PENSION FORMULAS: .............................................................................................. 20 C. EMPLOYEE PERS SHARE. ...................................................................................................... 20 D. EMPLOYER SHARE ................................................................................................................ 21 E. AT-WILL STATUS ................................................................................................................... 21 F. HIRING PROVISIONS ............................................................................................................. 23 G. GRIEVANCES REGARDING COUNCIL APPOINTED OFFICERS ................................................ 23 Attachment B .................................................................................................................................................. 24 Item 8
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4 COMPENSATION PLAN FOR THE CITY OF PALO ALTO

Management and Professional Personnel
As used in this Plan, the term “Management and Professional” refers to employees within classifications listed in the Management and Professional Salary Schedule.

SECTION I. COMPENSATION

A. MANAGEMENT AND PROFESSIONAL COMPENSATION POLICY

The City's policy for management and professional compensation is to establish and maintain a general structure based on marketplace norms and internal job alignment with broad compensation grades and ranges. Structures and ranges are reviewed and updated as necessary based on marketplace survey data, internal relationships, and City financial conditions.

B. BASIC PLAN ELEMENTS

1. Structure.

All management and professional classifications are assigned an appropriate pay range based on salary survey data and internal relationships. Actual salary within the range for individual employees is determined by experience and performance.

2. Compensation Adjustment Authorization.

The Council -appointed officers are authorized to establish such administrative rules as are necessary to implement the Management and Professional Salary Plan subject to the limitations of the approved compensation adjustment authorization and the approved salary schedule.

C. GENERAL SALARY INCREASES
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5 As part of the budget process and subject to Council approval, the City Manager may propose a compensation adjustment based on (1) competitive market data, (2) changes in internal position relationships, (3) the City's ability to pay, and (4) a recommendation received from the Human Resources Director.

Effective the first full pay period following July 1, 2025, salary ranges and salaries of all classifications will be increased by three percent (3.0%).

Effective the first full pay period following July 1, 2026, salary ranges and salaries of all classifications will be increased by three percent (3.0%).

Effective the first full pay period following July 1, 2027, salary ranges and salaries of all classifications will be increased by three percent (3.0%).

Effective the first pay period of January 2024 , all classifications received two hundred dollars ($200) monthly flexible compensation payment built into base hourly rate of pay.

D. ANNUAL PERFORMANCE REVIEW AND MERIT INCREASES

Individual base salary merit increases are earned and authorized in accordance with administrative practices based upon growth within the position, performance, and the City’s financial conditions . Merit pay adjustments are at the discretion of the Council -Appointed Officers and at amounts set on an annual basis during the fiscal year budget process.

These appraisals review performance over the prior fiscal year and provide goals and expectations for the new fiscal year. Performance plans are jointly prepared by the employee and supervisor with the concurrence of the department head or Council -appointed officer.

Progress toward meeting objectives shall be monitored periodically.

Management/professional employees who have received an overall rating of “meets expectations” or above on their annual review and who have not been on a performance improvement plan during the preceding fiscal year will be eligible for a Merit increase to base compensation, if applicable for that year. Recommended ratings will be provided to Department Heads, the Human Resources Department, and the appropriate Council-Appointed Officer for final review.

Nothing herein shall preclude an employee's manager from recommending a mid -point adjustment increase to an employee on a performance plan at a later date should employee's performance improve.

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6 E. CLASSIFICATION COMPENSATION REVIEW

The City will periodically survey classifications to determine their competitive market placement.

The results of a total compensation study may indicate that a pay range be adjusted, or that no change takes place. Such adjustments may only affect the salary administration framework. No individual salaries will be automatically changed because of structural adjustments.

Notwithstanding any other provision of this Compensation Plan, in the event a downward adjustment of a position grade assignment indicates a reduction in the established salary of an individual employee, the Council-appointed officer may, if circumstances warrant, continue the salary for such employee in an amount in excess of the revised grade limit for a reasonable period of time. Such interim salary rates shall be defined as "Y-rates." Employees in “Y-rated” positions shall not be eligible for any increase to base salary unless and until the amount of the “Y-rated” salary is equal to or less than the published pay rates. Employees assigned to work above class duties shall not be eligible for “Y-rated” pay on conclusion of a work above class assignment.

SECTION II. SPECIAL COMPENSATION

This section applies to all eligible regular management and professional positions including Council- Appointed Officers as applicable . Eligibility shall be in conformance with the Merit Rules and Regulations, Personnel Policies and Administrative guidance issued by the City Manager for the purposes of clarification and interpretation.

A. OVERTIME

Compensation for overtime work shall be in conformance with the Merit Rules and Regulations and Policies and Procedures.

B. WORKING ABOVE CLASSIFICATION PAY

Where employees, on a temporary basis, are assigned to perform all significant duties of a higher classification for a period of one month or more, the City Manager may authorize payment within the range of the higher classification for the specified time frame. All qualified and interested employees within a work group should be considered for the working above classification Item 8
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7 opportunity whenever feasible. Working above classification will not exceed six months, unless renewed at the discretion of the City Manager. On expiration of that timeframe, working above classification pay will cease and the employee will return to their former pay level. Working above classification pay is not to exceed 10% more than the employee’s current salary and shall be documented on a Personnel Action Form, with a description of the additional duties in the higher classification to be performed and an end date.

C. STAND-BY PAY

Employees eligible for overtime may be entitled to stand-by pay, approved by the City Manager on a case by case basis, in extreme circumstances involving unavailability of non -management staff.

Compensation is as follows:

Monday through Friday $40 per day
Saturday, Sunday, Holidays $58 per day

D. CALL OUT PAY

Effective pay period beginning February 26, 2011, Exempt management and professional classifications will be compensated for Call Out as outlined below with Management approval (and will not be eligible for overtime pay). Call Out applies when: (1) an employee previously left City premises, (2) is called back to the work location outside of regularly scheduled working hours, and (3) the Call Back is for an emergency arising out of situations involving real or potential loss of service, property or personal danger. Employees called back will be expected to respond directly to the location of the problem.

Compensation is per Call Out as reported on timecard and will be paid as follows:

Monday through Friday: $140 per day
Saturday and Sunday: $200 per day

E. NIGHT SHIFT PREMIUM

F. UNIFORM PURCHASE PLAN - SWORN POLICE, FIRE PERSONNEL, and OPEN SPACE

PERSONNEL

Uniforms, including cleaning, will be provided with replacement provisions on an as-needed basis in conformance with department policy.

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8 G. SAFETY DIFFERENTIALS

A. P.O.S.T. Intermediate Certificate: five percent (5%) above base salary B. P.O.S.T. Advanced Certificate: seven and a half (7 ½%) above base salary

2. Fire Department - EMT Differential

Pursuant to administrative rules governing eligibility and qualification, the following differential may be granted to sworn Fire personnel:

A. EMT Differential: three percent (3%) above base salary

SECTION III. BENEFIT PROGRAMS

A. MEDICAL

1. Effective Date of Coverage for New Employees

2. Active Employee Health Plan

a) During the term of this compensation plan, the maximum City contribution towards medical Item 8
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9 premiums for eligible full- time employees per category shall be up to a maximum of the following for any plan:

Medical Premium Category (Coverage Level) Maximum City Contribution Effective July 1, 2025 Single (EE only)

$943
2- Party (EE +1)

$1,885
Family (EE + 2 or more)

$2,444

Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the following percentages:
• Employee only: 2%
• Employee plus one: 3%
• Employee family: 5%

Medical Premium Category Total Maximum City Contribution (inclusive of PEMHCA contribution*)
effective January 1, 2027
Employee only
Employee plus one
Employee family
$962
$1,942
$2,566

The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work.

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10 Partnership, and are registered with the Human Resources Department, will be eligible for a stipend of up to two hundred and eighty four dollars ($284.00) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for reimbursement.

c) Alternative Medical Benefit Program

If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through another non- City of Palo Alto employer- sponsored or association medical plan, the employee may choose to waive their right to the City of Palo Alto’s medical insurance and receive cash payments in the amount of $284.00. Council Members are not eligible for the Alternative Medical Benefit Program.

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11 employee’s failure to notify the City of a change in status. Employees are required to annually submit waiver forms in order to continue to receive these payments. Failure to submit annual waiver may result in loss of this alternative medical benefit.

B. RETIREE HEALTH PLAN

a) Employees Hired Prior to January 1, 2004
Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees” Medical and Hospital Care Act. The City’s monthly employer contribution for each employee retiring on or after January 1, 2007 and prior to March 31, 2011 shall be the amount necessary to pay for the cost of his or her enrollment in a health benefits plan up to the monthly premium for the second most expensive plan offered to management and professional personnel during the contract term (among the existing array of plans.) The City’s contribution for an employee hired before January 1, 2004 who retires on or after March 30, 2011 shall be the same contribution amount it makes from time to time for active City employees.

b) Employees Hired after January 1, 2004
For employees hired after January 1, 2004, the PERS law vesting schedule set forth in Government Code section 22893 will apply. Under that law, an employee is eligible for 50% of the specified employer health premium contribution after ten (10) years of service credit, provided at least five (5) of those years were performed at the City of Palo Alto. After ten (10) years of service credit, each additional service credit year increases the employer contribution percentage by 5% until, at 20 years’ service credit, the employee will be eligible upon retirement for 100% of the spec ified employer contribution and 90% of their dependent coverage. The City of Palo Alto’s health premium contribution for eligible employees shall be the minimum contribution set by PERS under section 22893 based on a weighted average of available health plan premiums.

c) On July 6, 2016 the City provided active employees who were hired before January 1, 2004 with a one -time opportunity to opt- in to retiree health benefits provided under California Government Code section 22893.

C. DENTAL

a) The City will maintain the present level of benefits on the City-sponsored dental program. The City provides a base dental plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a dental “buy-up” plan.
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12 include domestic partners. Employees will be responsible for premium payments required to enroll in the “buy up” dental plan.

C. LIFE INSURANCE

b) Supplemental Life And AD&D Insurance

An employee may, at their cost, purchase voluntary life insurance and voluntary AD&D coverage equal to one- or two-times their annual salary. The maximum amount of life insurance available to the employee is up to $500,000 and the maximum amount of AD&D coverage available is up to $500,000. Employee may, at their cost, purchase voluntary spousal and child life insurance.

D. DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) AND HEALTHCARE FLEXIBLE

a) DCAP: The City will provide a dependent care assistance program for employees subject to the provisions of applicable law. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document.

E. VISION

a) The City provides a base vision plan for all eligible employees and dependents.

Employees will be responsible for premium payments required to enroll in the “buy up” vision plan. Dependents include domestic partners.

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13 b) Benefits for regular part-time employees will be prorated as follows:

Employees hired after January 1, 2004, who will work less than full time, will receive prorated premium costs for vision benefits in accordance with their percentage of a full-time work schedule. Vision benefits for regular part -time employees hired or assigned to a part-time schedule will be prorated in accordance with their percentage of a full- time work schedule.

F. DEFERRED COMPENSATION

The City will continue to provide a 457 Deferred Compensation Plan for employees to make pre or post tax contributions.

G. EMPLOYEE ASSISTANCE PROGRAM

This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online.

H. COMMUTE INCENTIVES and PARKING

a. Civic Center Parking. Employees assigned to Civic Center and adjacent work locations. The City will provide a Civic Center Garage parking permit. Employees hired after June 30, 1994 may initially receive a parking permit for another downtown lot, subject to the availability of space at the Civic Center Garage.

b. Alternative Commute Incentives: Employees who qualify may voluntarily elect commute incentives, including but not limited to the following options, for those using an eligible commute alternative on 60% or more of their scheduled work days per month:

a) Public Transit, Parking and Vanpool. The City provides tax-free commute incentives up to the current IRS limit, as may be amended from time to time. Administration of this benefit shall be subject to the rules and regulations of the third- party administrator.

c) Bicycle. The City will provide employees with a tax -free incentive of $20 per month to eligible employees who ride a bicycle to work.

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14 d) Carpool. The City will provide with a taxable incentive of $30 per month to each eligible employee in a carpool with two or more licensed drivers.

e) Walk. The City will provide employees with a taxable incentive of $20 per month to eligible employees who walk to work.

I. LONG TERM DISABILITY INSURANCE

J. EXCESS BENEFIT

This benefit is designed to meet the requirements of Section 125 of the Internal Revenue Code, with exception of Gym or Health Club Membership. Effective January 1, 2026, every calendar year, each employee will be provided with $ 3,000 that they can designate among the following options, subject to caps pursuant to IRS regulations:

b)
Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the provision of applicable law.

c) Non-taxable Professional Development Spending Account. Provides reimbursement for Non-Taxable professional development expenses (e.g., job -related training and education, seminars, training manuals, etc.) to the extent they are not paid or reimbursed under any other plan of the City.

d) Gym or Health Club memberships. Provides reimbursement for annual or monthly memberships, including personal trainers. Reimbursement of this expense is taxable to the employee.

e) Deferred Compensation. Provides a one -time contribution to the employee’s City - sponsored 457 Deferred Compensation plan.

Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a “use–it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the Item 8
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15 extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan.

K. PROFESSIONAL DEVELOPMENT

The following items are eligible for reimbursement:

a) Civic and professional association memberships

b) Conference participation and travel expenses, which must occur within the compensation plan period.

c) Educational programs, books and videos, and tuition reimbursement designed to maintain or improve the employee's skills in performing their job or future job opportunities, should support the City’s mission or be necessary to meet the educational requirements for qualification for employment. Permissible educational expenses are refresher courses, courses dealing with current developments, academic or vocational courses, as well as the travel expenses associated with the courses as defined by the City’s travel expense report from the Policy & Procedures Manual Section 1-02 ASD.
d) Professional and trade journal subscriptions not to exceed 12 months.

Approval is at the discretion of department head and signature is required on reimbursement form.

Amounts under this professional development program will be pro -rated in the first year of employment or promotion into a position covered by this Compensation Plan

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16 L. MEAL ALLOWANCE

Management and professional employees assigned to attend night meetings are eligible to receive reimbursement for up to $38.00 per dinner, or as otherwise defined in Policy 1-66/ASD.

This provision covers only receipted meals actually taken and submitted for reimbursement.

IV. LEAVES

This section applies to all management and professional employees and does not include Council Members or Council-appointed officers.

A. SICK LEAVE

a) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50% or more of a bi -weekly pay period. Sick leave shall be accrued at the rate of

b) Employees may use up to thirty (30) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management.

c) Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law or by Section 609 of the Merit Rules and Regulations. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice.

d) Sick leave may be used for illness in the immediate family, including a registered domestic partner or other individuals required by applicable law.

e) In accordance with the City Merit Rules and Regulations, a new employee may, if necessary, use up to 48 hours or shift equivalent of sick leave at any time during the first six (6) months of employment.

B. HOLIDAY

The following holidays are recognized as municipal holidays for pay purposes, and regular, employees shall have these days off with pay, except as otherwise provided in these rules:

January 1 Veterans' Day, November 11
Third Monday in January Thanksgiving Day
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17 Third Monday in February Day after Thanksgiving Day Last Monday in May December 25
July 4th Either December 24, or December 31 as provided below First Monday in September
Second Monday in October

Employees shall be excused with pay for the full work shift on either December 24 or December 31, provided that City facilities remain open with reduced staffing levels as determined by the various departments. Neither day shall be considered a holiday for purposes of premium pay. Employees who are not excused pursuant to this provision shall have one shift of vacation credit added to their accrual.

C. IN LIEU HOLIDAY PAY

Employees who work a schedule where a regular day off falls on a holiday will be paid for the hours they would have normally worked on that day. If the holiday falls on a non -workday for an exempt employee, the employee may, with supervisory approval, take another day off within the pay period or the following pay period.

D. MANAGEMENT ANNUAL LEAVE

a) Exempt Employees

Regular management and professional exempt employees will be credited with 80 hours of annual leave. This leave is granted in recognition of the extra hours Management and Professional employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (s ubject to vacation accrual limitations), taken as cash , or taken as deferred compensation. When time off is taken under this provision, 10 -hour shift workers will receive one shift off for each 8 hours charged; 24-hour shift workers will receive one-half (½) shift off for each 8 hours charged.

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18 Council appointed Officers can, at their discretion, award additional management annual leave to employees. Award of additional leave is intended to acknowledge and recognize excellent performance and/or longevity in alignment with the annual merit cycle.

E. VACATION

Vacation is accrued when an employee is in pay status and is credited on a bi- weekly basis.

Total vacation accrual may not exceed three (3) times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status:

a) Less than nine (9) years. For employees completing less than nine (9) years continuous service: 120 hours vacation leave per year; provided that:

i. The City Manager is authorized to adjust department head annual vacation accrual to provide for a maximum of 160 hours for those hired between July 1, 1996 and June 30, 2001; and

b) Nine (9), but less than fourteen (14) years. For employees completing nine (9), but not more than fourteen (14) years continuous service; 160 hours vacation per year.

c) Fourteen (14), but less than nineteen (19) years. For employees completing fourteen (14), but not more than nineteen (19) years continuous service; 180 hours vacation leave per year.

d) Nineteen (19) or more years. For employees completing nineteen (19) or more years continuous service; 200 hours vacation leave per year.

Employees must elect the number of vacation hours they will cash- out during the next calendar year, up to the maximum of one hundred twenty ( 120) hours. For the following calendar year, employees will make their election for vacation hours to cash out during the annual Benefit Open Enrollment period. The election will apply only to vacation hours accrued in the next calendar year and that are eligible for cash-out.

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

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

Employees who do not elect a cash -out amount during the annual Benefit Open Enrollment period of the prior calendar year waive the right to cash out any leave in the following tax year.

Employees who elect cash -out amounts may request a cash -out at any time in the designated tax year by submitting a cash- out form to payroll. Payroll will complete the cash-out upon request, provided the requested cash-out amount has accrued and is consiste nt with the amount the employee pre -designated. If the full amount of hours designated for cash- out is not available at the time of cash -out request, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of each year, Payroll will automatically cash-out the elected amount in a paycheck issued on or after the payroll date including November 1.

F. BEREAVEMENT

Leave of absence with pay of three (3) days may be granted an employee by the head of their department in the event of death in the employee’s family, which is defined for purposes of this section as wife, husband, son, son-in-law, step-son, daughter, daughter-in- law, step-daughter, mother, mother-in-law, father, father-in-law, brother, brother-in-law, sister, sister-in-law, grandmother, grandmother-in-law, grandfather, grandfather-in-law, grandchild, aunt, uncle, niece, nephew, registered domestic partner, or a close relative residing in the household of employee. Such leave shall be at full pay and shall not be charged against the employee’s accrued vacation or sick leave. Employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Requests for leave in excess of five (5) days shall be subject to the approval of a Council-Appointed Officer for employees under their control.

Use of accrued leave credits during leaves of absence. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued paid vacation and sick leave in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective.

V. RETIREMENT
A. MISCELLANEOUS PENSION FORMULAS:
a) Miscellaneous Pension Group A: 2.7% at 55. The City provides retirement benefits under Item 8
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20 the California Public Employees Retirement System at the level of 2.7% at age 55 for employees hired before July 17, 2010, with a one year final compensation period.

b) Miscellaneous Pension Group B: 2% at 60. For miscellaneous employees hired on or after July 17, 2010, and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Clas sic” CalPERS members)the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60), with a one (1) year final compensation period.

B. SAFETY PENSION FORMULAS:

a) Safety Pension Group A: 3% at 50. For Safety members, the City currently offers the CalPERS "3% at 50" full formula (Section 21362.2) benefit, with a one (1) year final compensation period.

b) Safety Pension Group B: 3% at 55. Local Fire Safety members newly hired after June 8, 2012 will be placed in the 3%@55 formula. As soon as administratively possible, the City intends to modify the Local Police Safety formula for new hires to 3%@55 formula.

C. EMPLOYEE PERS SHARE.

a) Miscellaneous Employee Shares:
• Employees in Miscellaneous Pension Group A shall pay the full eight percent (8%) employee contribution.
• Employees in Miscellaneous Pension Group B shall pay the full seven percent (7%) employee contribution.
• Employees in Miscellaneous Pension Group C shall pay the employee contribution required by the Public Employees Pension Reform Act, calculated at fifty percent (50%) of the normal cost.

b) Safety Employee Shares:
a. Employees in Safety Pension Group A shall pay the full nine percent (9%) PERS employee contribution.

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21 b. Employees in Safety Pension Group B shall pay the full eight percent (9%) PERS employee contribution.
c. Employees in Safety Pension Group C shall pay the employee contribution required by the Public Employees Pension Reform Act, calculated at fifty percent (50%) of the normal cost.

D. EMPLOYER SHARE

a) Miscellaneous (Non-Safety) Management and Professional:

As soon as administratively possible, but no sooner than pay period including July 1, 2017 each Miscellaneous (non-Safety) Management and Professional employee shall pay one- half percent (0.5%) of their salary toward the employer cost of retirement in accordance with Section 20516 of the California Government Code.

This will result in Miscellaneous (non -Safety) Management and Professional employees paying a total of one (1) percent of the employer share in addition to their employee contribution.

b) Safety Management:

This will result in Safety Management employees paying a total of three (3) percent of the employer share in addition to their employee contribution.

E. AT-WILL STATUS

Certain Management and Professional Positions are designated as having “at -will” employment status. Employees hired into “at-will” positions shall have no constitutionally protected property or other interest in their employment with the City. Notwithstanding any provision in the Merit System Rules and Regulations or any other City rule, policy or procedure, at-will employees have no right to continued employment or pre-or post-disciplinary due process and work at the will and pleasure of Item 8
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22 the hiring authority (City Council, City Manager or Council -Appointed Officer). Work for an at -will employee may be eliminated and/or the employee may be terminated, or asked to resign, at any time, with or without cause, upon notice to that employee, and the employee may resign at any time upon written notice to the hiring authority.

a) At-will Management & Professional positions.

Effective July 1, 2012 , new employees hired or promoted to department head, assistant department director, and all other positions listed on Attachment B shall be at -will employees.

At-will employees who are terminated or asked to resign shall, upon execution of a release of all claims against the City, be eligible for a severance payment equivalent to four (4) weeks of salary and benefits, increasing after completion of the first full year of service by one (1) week for every completed year of service, up to a maximum of 12 weeks. For example, an at-will employee who has completed six (6) years of service would be eligible to receive ten (10) weeks of severance (4 weeks plus 1 week for each year of service). No severance shall be paid if the employee is terminated for serious misconduct involving ab use of their office or position, including but not limited to waste, fraud, violation of the law under color of authority, misappropriation of public resources, violence, harassment or discrimination. If the employee is later convicted of a crime involving such abuse of their position the employee shall fully reimburse the City as set forth in Government Code section 53243.3.

b) Provisional employees.

c) Management and Legal Fellows.

The City has created programs for Management Fellows and Legal Fellows when funding is available. The programs’ purpose is to create limited duration entry level positions for management graduates and lawyers. Fellows will be “at will” employees whose term of employment shall be no more than two (2) years. Fellows shall be PERS exempt to the extent allowed by law, but may receive vacation, sick leave, health care benefits and other limited benefits, as determined by the City Manager or City Attorney. Sectio ns I and II of this Plan shall not apply to Management and Legal Fellows, except as specified by the City Manager Item 8
Attachment D -
Management &
Professional
Compensation Plan

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23 or City Attorney.

F. HIRING PROVISIONS

a) Reimbursement For Relocation Expense

The City of Palo Alto, in rare instances, may provide a Basic Relocation Benefits Package for new management and professional employees, upon the approval of the City Manager or designated subordinate. In addition, the provision of “Optional Benefits” or portions thereof, may be extended for exceptional circumstances and only the approval of the City Manager or designee, or for Council-appointed officers, the City Council.

The details of the Relocation Expense program are specified in the City’s Relocation Expense policy and all relocation reimbursements shall be subject to the provisions of that policy.

b) Hiring Incentive

Council Appointed Officers may authorize a hiring incentive for critical Management and Professional personnel vacancies. Hiring incentives must be funded through department salary savings.

G. GRIEVANCES REGARDING COUNCIL APPOINTED OFFICERS

Item 8
Attachment D -
Management &
Professional
Compensation Plan

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24 Attachment B

At-Will Positions Management and Professional Unit

Department Heads- All departments
Assistant Directors- All departments
Deputy Directors- All departments
Division Managers - All departments

Administrative Services
Director, Administrative Services/Chief Financial Officer Director, Office of Management & Budget
Assistant Director, Administrative Services
Division Managers such as:

Budget Manager; Finance Manager; Chief
Procurement Officer; Manager, Real
Property; Treasury Manager; Principal
Analyst; Revenue Collections Manager

City Attorney
Chief Assistant City Attorney
Assistant City Attorney
Deputy City Attorney
Legal Fellow

City Clerk
Assistant City Clerk
Deputy City Clerk

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25 Chief Transportation Official
Manager Economic Development
Management Fellow

Community Services
Director, Community Services
Assistant Director, Community Services
Manager, Community Services
Manager, Community Services Program Senior

Human Resources
Director of Human Resources/Chief People Officer
Assistant Director, Human Resources
Human Resources Manager
Senior Administrator Human Resources

IT
Director, IT/Chief Information Officer
Manager, Information Technology

Library
Director, Libraries
Assistant Director, Library Services
Division Head, Collection & Technical Services
Manager, Library Services

Public Safety
Chief of Police/Director of Public Safety
Fire Chief /Assistant Public Safety Director
Assistant Police Chief
Item 8
Attachment D -
Management &
Professional
Compensation Plan

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26 Emergency Services Director
Deputy Director – Technical Services Division (police department) Deputy Fire Chief

Utilities
Director, Utilities
Chief Operating Officer

Item 8
Attachment D -
Management &
Professional
Compensation Plan

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International Association of Fire Fighters
Salary Schedule
Effective First Full Pay Period
Following July 1, 2025
(7/12/2025)
Effective First Full Pay Period Effective First Full Pay Period Following July 1, 2027
(7/10/2027)
Following July 1, 2026
(7/11/2026)FLSA SH/NS Job TitleJob
Code 3% Increase 3.75% Increase 3.75% Increase
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 1 2
3 4
5 6
1 2
3 4
5 6
1 2
3 4
5 6
1 2
3 4
5 6
1 2
3 4
5 6
1 2
3 4
5 6
1 2
3 4
5 6
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

46.46 48.91

51.48 54.19

57.04 60.04

55.51 58.43

61.50 64.74

68.15 71.74

58.26 61.33

64.56 67.96

71.54 75.30

43.49 45.78

48.19 50.73

53.40 56.21

65.02 68.44

72.04 75.83

79.82 84.02

77.72 81.81

86.12 90.65

95.42 100.44

81.61 85.91

90.43 95.19
100.20
105.47
1 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

48.21 50.75

53.42 56.23

59.19 62.30

57.60 60.63

63.82 67.18

70.72 74.44

60.45 63.63

66.98 70.51

74.22 78.13

45.13 47.50

50.00 52.63

55.40 58.32

67.46 71.01

74.75 78.68

82.82 87.18

80.64 84.88

89.35 94.05

99.00 104.21

84.67 89.13

93.82 98.76
103.96
109.43
1 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

50.02 52.65

55.42 58.34

61.41 64.64

59.76 62.91

66.22 69.71

73.38 77.24

62.73 66.03

69.50 73.16

77.01 81.06

46.83 49.29

51.88 54.61

57.48 60.51

69.99 73.67

77.55 81.63

85.93 90.45

83.66 88.06

92.69 97.57
102.71
108.12

87.86 92.48

97.35 102.47
107.86
113.54
2 3
2 3
601
602
603
604
634
635
636
Non‐exempt SH
SH
SH
SH
NS
NS
NS
FIRE APPARATUS OP 4
5 4
5 $
$
14,569.71
17,408.91
$
$
174,836.48
208,906.88
6 1
$
$
15,118.13
18,064.11
$
$
181,417.60
216,769.28
6 1
$
$
15,685.97
18,743.57
$
$
188,231.68
224,922.88
2 3
2 3
Non‐exempt FIRE CAPTAIN
4 5
4 5
6 1
2 6
1 2
3 4
3 4
Non‐exempt
Non‐exempt
Non‐exempt
Non‐exempt
Non‐exempt

FIRE INSPECTOR

FIRE FIGHTER
5 6
5 6$
$
$
18,272.80
13,640.29
14,563.47
$
$
$
219,273.60
163,683.52
174,761.60
$
$
$
18,959.55
14,152.32
15,111.20
$
$
$
227,514.56
169,827.84
181,334.40
$
$
$
19,670.56
14,683.76
15,678.00
$
$
$
236,046.72
176,205.12
188,136.00
1 2
1 2
3 4
3 4
5 6
5 6
1 2
1 2
3 4
3 4FIRE APPARATUS OP
5 6
5 6
1 2
1 2
3 4
3 4FIRE CAPTAIN
5 6
5 6
$
$ $
$
17,409.60
18,281.47
$
$
208,915.20
219,377.60
$ $
$
18,063.07
18,967.87
$
$
216,756.80
227,614.40
$ $
$
18,740.80
19,680.27
$
$
224,889.60
236,163.20
$
$
$
$
1 2
$
$
$
$
1 2
$
$
$3
4 3
4FIRE INSPECTOR
$
$ 5
6 $ 5
6 $
$$ $
Item 8
Attachment E - IAFF Local 1319
Salary Schedule

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Effective First Full Pay Period
Following July 1, 2025
(7/12/2025)
Effective First Full Pay Period
Following July 1, 2026
(7/11/2026)
Effective First Full Pay Period
Following July 1, 2027
(7/10/2027)FLSA SH/NS Job TitleJob
Code 3% Increase 3.75% Increase 3.75% Increase
Step Rate Monthly Annual Step Rate Monthly Annual Step Rate Monthly Annual 1 2
3 $
$
$

60.88 64.08

67.45 1 $
$
$

63.17 66.49

69.99 1 $
$
$

65.55 69.00

72.63 2 2
3 4
3 4
637
663
Non‐exempt
Non‐exempt
NS
NS

FIRE FIGHTER
4 5
6 1
2 3
4 5
1 $
$
$
$
$
$
$
$
$

71.00 74.74

78.67 69.18

72.82 76.65

80.68 84.93

81.61 $
$
$
$
$
$
$
$
$

73.67 77.55

81.63 71.76

75.54 79.52

83.71 88.12

84.67 $
$
$
$
$
$
$
$
$

76.45 80.47

84.70 74.47

78.39 82.52

86.86 91.43

87.86 5
6 1
2 3
4 5
6 1
2 3
4 $
$
13,636.13
14,721.20
$
$
163,633.60
176,654.40
$
$
14,149.20
15,274.13
$
$
169,790.40
183,289.60
$
$
14,681.33
15,847.87
$
$
176,176.00
190,174.40
Fire Inspector (Non‐Sworn)
5 1
5 1
2 3
4 5
6 1
2 3
4 $
$
$

85.91 90.43

95.19 100.20
105.47

81.61 85.91

90.43 95.19
2 3
4 5
6 $
$
$

89.13 93.82

98.76 103.96
109.43

84.67 89.13

93.82 98.76
2 3
4 5
6 $
$

92.48 97.35
642
646
Non‐exempt NS
NS
40‐HR TRAINING CAPTAIN
$ 102.47
107.86
113.54

87.86 $ $ $
$$ $ 18,281.47 $ 219,377.60 $ $ 18,967.87 $ 227,614.40 $ 19,680.27 $ 236,163.20 $ 1
2 $ 1
2 $
$
$
$
$
$
$
$
$

92.48 3
4 5
3 4
5 97.35
Non‐exempt HAZ MAT INSPECTOR $ 102.47
5 6
$ 100.20
105.47
$ 103.96
109.43
$
$
107.86
113.54$ 18,281.47 $ 219,377.60 6 $ 18,967.87 $ 227,614.40 6 $ 19,680.27 $ 236,163.20$ $ Item 8
Attachment E - IAFF Local 1319
Salary Schedule

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Palo Alto Fire Chiefs' Association (PAFCA) Salary Schedule Non-Shift
Job Code
Effective 07/12/2025 (4.5% Increase for Shift, 5% Increase for Non-Shift) Classifications
Battalion Chief 40-hour workweek
Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary 018 28 $136.17
$139.85
$139.85
$23,603
$24,241
$24,241
$283,234
$290,888
$290,888
015 Battalion Chief EMT 40-hour workweek 28E
28E2019 Battalion Chief EMT, Training 40-hour workweek
Shift
Job Code Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary 116
016
Battalion Chief 56-hour workweek 030 $92.68
$95.15
$22,491
$23,090
$269,885
$277,077Battalion Chief EMT 56-hour workweek 030E
Non-Shift
Job Code
018
Effective 7/11/2026 (3% Increase)
Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary Battalion Chief 40-hour workweek 28 $140.26 $24,312 $291,741 015 Battalion Chief EMT 40-hour workweek 28E
28E
$144.05
$144.05
$24,969
$24,969
$299,624
$299,6242019 Battalion Chief EMT, Training 40-hour workweek Shift
Job Code
116
Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary Battalion Chief 56-hour workweek 030 $95.47
$98.01
$23,168 $278,009
016 Battalion Chief EMT 56-hour workweek 030E $23,784 $285,406 Non-Shift
Job Code
018
Effective 7/10/2027 (5% Increase)
Classifications Grade Codes Hourly Rate Approx Monthly Salary Approx. Annual Salary Battalion Chief 40-hour workweek 28 $147.28 $25,529 $306,343 015 Battalion Chief EMT 40-hour workweek 28E
28E
$151.26
$151.26
$26,219
$26,219
$314,621
$314,6212019 Battalion Chief EMT, Training 40-hour workweek Shift
Job Code
116
Classifications Grade Codes Approx Monthly Salary Approx. Annual Salary Battalion Chief 56-hour workweek 030 $100.25
$102.92
$24,328 $291,928
016 Battalion Chief EMT 56-hour workweek 030E $24,976 $299,704 Item 8
Attachment F - FCA Salary Schedule

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City of Palo Alto
Utilities Management and Professional Association of Palo Alto (UMPAPA) Salary Schedule Effective 7/12/2025
Grade Codes Min Hourly Rate Max Hourly Rate Approx Max Monthly SalaryJob Code Classifications Approx. Max Annual Salary 2076 Utilities Administrative Assistant 0700
0230
$41.46 $55.28 $9,582 $114,983
$299,8741002 Assistant Director, Utilites Customer Support Services $108.13 $144.17 $24,990 6 Assistant Director, Electric and Fiber Utilities Utilities 0190 $117.94 $157.24 $27,255 $327,060 1003 Assistant Director, WGW Utilities 0190
0200
0380
0231
$113.89
$111.21
$72.36
$151.85
$148.28
$96.47
$26,321
$25,702
$16,722
$25,345
$315,848
$308,423
$200,658
$304,138
65 84
Assistant Director, Utilities Resource Management
Manager, Utilities Public Communications
129 Engineering Manager, Electric and Fiber Utilities $109.67 $146.22 Engineering Manager, Water, Gas & Wastewater (WGW)
Utilities120 0231 $103.99 $138.64 $24,031 $288,372
2025 Manager, Utilities Strategic Business Services 0240 0360
0270
0360
0270
0350
0350
0330
0340
0291
0291
0350
0271
$98.35
$82.76
$99.05
$82.76
$92.91
$76.72
$79.42
$77.96
$67.94
$95.52
$90.58
$66.18
$85.12
$131.13
$110.34
$132.06
$110.34
$123.87
$102.28
$105.89
$103.93
$90.58
$22,730
$19,126
$22,891
$19,126
$21,471
$17,729
$18,355
$18,015
$15,701
$22,076
$20,934
$15,294
$19,672
$272,751
$229,508
$274,685
$229,508
$257,650
$212,743
$220,252
$216,175
$188,407
$264,909
$251,202
$183,519
$236,060
179
185
Manager, Utilities Customer Service
Operations Manager, Electric and Fiber Utilities
1114 Manager, Utilities Credit & Collection
156
150
48 Operations Manager, WGW Utilities
Manager, Utilities Program Services
Manager, Fiber Optic Utility
2020 Utilities Principal Business Analyst
13 Utilities Senior Business Analyst
188 Principal Engineer, Electric and Fiber Utilities $127.36 $120.77
$88.23
2187 Principal Engineer, WGW Utilities
2014 Utilities Senior Management Analyst
25 27
28 Senior Planner, Utilities Resources $113.49
Supervising Project Engineer, Electric and Fiber Utilities Supervising Project Engineer, WGW Utilities
0341 $81.33 $108.43 $18,795 $225,535
0341
0291
0680
0680
0390
$78.55
$90.26
$80.92
$89.03
$70.27
$104.74
$120.35
$107.89
$118.69
$93.69
$18,155
$20,861
$18,701
$20,573
$16,240
$217,860
$250,328
$224,412
$246,876
$194,876
1011 Manager, Utilities Compliance
114 Operations Supervisor, WGW Utilities
1113 Operations Supervisor, Electric and Fiber Utilities 2017 Utilities Safety Officer
Item 8
Attachment G - UMPAPA Salary
Schedule

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City of Palo Alto
Utilities Management and Professional Association of Palo Alto (UMPAPA) Salary Schedule Effective 7/11/2026 (3% Increase)
Grade
Codes
Max Hourly Rate Approx Max Monthly Salary Approx. Max Annual SalaryJob Code Classifications Min Hourly Rate 2076 Utilities Administrative Assistant 0700
0230
0190
0190
0200
0380
0231
$42.71
$111.38
$121.48
$117.31
$114.55
$74.54
$56.94
$148.50
$161.96
$156.41
$152.73
$99.37
$9,870
$25,740
$28,074
$27,112
$26,474
$17,225
$26,106
$118,436
$308,880
$336,877
$325,333
$317,679
$206,690
$313,269
1002 Assistant Director, Utilites Customer Support Services 6 Assistant Director, Electric and Fiber Utilities Utilities 1003 Assistant Director, WGW Utilities
65 84
Assistant Director, Utilities Resource Management
Manager, Utilities Public Communications
129 Engineering Manager, Electric and Fiber Utilities $112.97 $150.61 Engineering Manager, Water, Gas & Wastewater (WGW)
Utilities120 0231 $107.11 $142.80 $24,752 $297,024
2025 Manager, Utilities Strategic Business Services 0240 0360
0270
0360
0270
0350
0350
0330
0340
0291
0291
0350
0271
0341
0341
0291
0680
0680
0390
$101.31
$85.25
$102.03
$85.25
$95.70
$79.03
$81.81
$80.30
$69.98
$98.39
$93.30
$68.17
$87.68
$83.77
$80.91
$92.97
$83.35
$91.71
$72.38
$135.07
$113.66
$136.03
$113.66
$127.59
$105.35
$109.07
$107.05
$93.30
$23,413
$19,702
$23,579
$19,702
$22,116
$18,261
$18,906
$18,556
$16,172
$22,740
$21,563
$15,753
$20,263
$19,360
$18,701
$21,489
$19,263
$21,192
$16,729
$280,946
$236,413
$282,943
$236,413
$265,388
$219,128
$226,866
$222,664
$194,064
$272,876
$258,752
$189,031
$243,152
$232,316
$224,412
$257,858
$231,151
$254,301
$200,741
179
185
Manager, Utilities Customer Service
Operations Manager, Electric and Fiber Utilities
1114 Manager, Utilities Credit & Collection
156
150
48 Operations Manager, WGW Utilities
Manager, Utilities Program Services
Manager, Fiber Optic Utility
2020 Utilities Principal Business Analyst
13 Utilities Senior Business Analyst
188 Principal Engineer, Electric and Fiber Utilities $131.19 $124.40
$90.88
2187 Principal Engineer, WGW Utilities
2014 Utilities Senior Management Analyst
25 27
28 Senior Planner, Utilities Resources $116.90
$111.69
$107.89
$123.97
$111.13
$122.26
$96.51
Supervising Project Engineer, Electric and Fiber Utilities Supervising Project Engineer, WGW Utilities
1011 Manager, Utilities Compliance
114 Operations Supervisor, WGW Utilities
1113 Operations Supervisor, Electric and Fiber Utilities 2017 Utilities Safety Officer
Item 8
Attachment G - UMPAPA Salary
Schedule

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City of Palo Alto
Utilities Management and Professional Association of Palo Alto (UMPAPA) Salary Schedule Effective 7/10/2027 (3% Increase)
Grade
CodesJob Code Classifications Min Hourly Rate Max Hourly Rate Approx Max Monthly Salary Approx. Max Annual Salary 2076 Utilities Administrative Assistant 0700
0230
0190
0190
0200
0380
0231
$44.00
$114.73
$125.13
$120.83
$117.99
$76.78
$58.65
$152.96
$166.82
$161.11
$157.32
$102.36
$155.13
$10,166
$26,514
$28,916
$27,926
$27,269
$17,743
$26,890
$121,992
$318,157
$346,986
$335,109
$327,226
$212,909
$322,671
1002 Assistant Director, Utilites Customer Support Services 6 Assistant Director, Electric and Fiber Utilities Utilities 1003 Assistant Director, WGW Utilities
65 84
Assistant Director, Utilities Resource Management
Manager, Utilities Public Communications
129 Engineering Manager, Electric and Fiber Utilities $116.36 Engineering Manager, Water, Gas & Wastewater (WGW)
Utilities120 0231 $110.33 $147.09 $25,496 $305,948
2025 Manager, Utilities Strategic Business Services 0240 0360
0270
0360
0270
0350
0350
0330
0340
0291
0291
0350
0271
0341
0341
0291
0680
0680
0390
$104.35
$87.81
$105.10
$87.81
$98.58
$81.41
$84.27
$82.71
$72.08
$101.35
$96.10
$70.22
$90.32
$86.29
$83.34
$95.76
$85.86
$94.47
$74.56
$139.13
$117.07
$140.12
$117.07
$131.42
$108.52
$112.35
$110.27
$96.10
$24,116
$20,293
$24,288
$20,293
$22,780
$18,811
$19,474
$19,114
$16,658
$23,423
$22,211
$16,226
$20,872
$19,942
$19,263
$22,133
$19,842
$21,828
$17,232
$289,391
$243,506
$291,450
$243,506
$273,354
$225,722
$233,688
$229,362
$199,888
$281,071
$266,532
$194,709
$250,453
$239,304
$231,151
$265,596
$238,098
$261,935
$206,773
179
185
Manager, Utilities Customer Service
Operations Manager, Electric and Fiber Utilities
1114 Manager, Utilities Credit & Collection
156
150
48 Operations Manager, WGW Utilities
Manager, Utilities Program Services
Manager, Fiber Optic Utility
2020 Utilities Principal Business Analyst
13 Utilities Senior Business Analyst
188 Principal Engineer, Electric and Fiber Utilities $135.13 $128.14
$93.61
2187 Principal Engineer, WGW Utilities
2014 Utilities Senior Management Analyst
25 27
28 Senior Planner, Utilities Resources $120.41
$115.05
$111.13
$127.69
$114.47
$125.93
$99.41
Supervising Project Engineer, Electric and Fiber Utilities Supervising Project Engineer, WGW Utilities
1011 Manager, Utilities Compliance
114 Operations Supervisor, WGW Utilities
1113 Operations Supervisor, Electric and Fiber Utilities 2017 Utilities Safety Officer
Item 8
Attachment G - UMPAPA Salary
Schedule

Item 8: Staff Report
Pg.
258

Packet Pg. 496 of 1138

City of Palo Alto
Management, Professional and Confidential Salary Schedule Effective 7/12/2025 (3% Increase) Hourly Rate Approx. Annual Salary
MidJob Code FLSA Status Classifications Grade
Codes
Min Mid Max Min Max
190
76 Non-Exempt Accountant 690P
750P
405M
100A
165A
630M
20E
$45.65
$36.60
$66.04
$107.89
$82.92
$50.40
$107.62
$89.40
$85.62
$82.81
$85.62
$77.36
$87.07
$86.07
$94.93
$80.84
$50.08
$71.28
$69.91
$84.45
$82.36
$75.58
$64.63
$87.41
$44.36
$47.96
$56.21
$45.80
$98.24
$65.16
$39.60
$85.48
$80.68
$102.31
$103.98
$98.90
$57.06
$45.75
$68.48
$54.90
$94,952
$76,128
$118,689
$95,160
$142,439
$114,192
$206,045
$336,628
$258,690
$157,248
$335,775
$278,928
$267,135
$258,378
$267,135
$241,364
$271,648
$268,528
$296,192
$252,200
$156,250
$222,373
$218,109
$263,495
$256,943
$235,810
$201,636
$272,730
$138,383
$149,615
$175,386
$142,896
$306,488
$203,279
$123,532
$266,698
$251,701
$319,197
$324,418
$308,568
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exampt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Administrative Assistant
115
132
108
109
107
73 Assistant Chief Building Official
Assistant Chief of Police
$82.55 $99.06 $137,364
$224,412
$172,474
$104,832
$223,850
$185,952
$178,090
$172,245
$178,090
$160,909
$181,106
$179,026
$197,455
$168,148
$104,167
$148,263
$145,413
$175,656
$171,309
$157,207
$134,431
$181,813
$92,269
$171,704
$280,509
$215,572
$131,040
$279,802
$232,440
$222,602
$215,301
$222,602
$201,136
$226,367
$223,767
$246,813
$210,164
$130,208
$185,308
$181,751
$219,565
$214,116
$196,498
$168,023
$227,261
$115,316
$124,676
$146,141
$119,080
$255,404
$169,396
$102,940
$222,248
$209,748
$265,991
$270,338
$257,130
$134.86
$103.64
$63.00
$161.84
$124.37
$75.60
Assistant City Attorney
Assistant City Clerk
Assistant City Manager $134.52
$111.75
$107.02
$103.51
$107.02
$96.70
$161.43
$134.10
$128.43
$124.22
$128.43
$116.04
$130.60
$129.10
$142.40
$121.25
$75.12
Assistant Director Administrative Services
Assistant Director Community Services
Assistant Director Human Resources
Assistant Director Information Technology
Assistant Director Library Services
Assistant Director Planning & Community Environment
Assistant Director Public Works
Assistant Director Sustainability & Climate Action
Assistant Fire Marshal
120A
150A
155A
150A
160A
130A
140A
TBD
126
1007
2032
2001
10 $108.83
$107.58
$118.66
$101.04
$62.60
143
2034
2035
168
102
30 TBD
Assistant Fleet Manager 585M
240D
390M
290M
135A
220D
235D
140A
660P
615M
585P
675M
125A
375M
720M
115A
200D
110A
50E
Assistant Manager WQCP $89.09 $106.91
$104.86
$126.68
$123.53
$113.37
$96.94
Assistant to the City Manager
Chief Building Official
$87.38
118
2008
112
95 $105.56
$102.94
$94.47
Chief Communications Officer
Chief Planning Official
Chief Procurement Officer $80.78
82 Chief Transportation Official
Claims Investigator
$109.26
$55.44
$131.12
$66.5396
24 Communication Specialist $59.94 $71.93 $99,757
89 Contracts Administrator $70.26 $84.32 $116,917
$95,264186
191
11 Non-Exempt Coordinator Library Circulation $57.25 $68.70 Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Fire Marshal $122.79
$81.44
$147.35
$97.73
$204,340
$135,533
$82,368
Deputy City Attorney
71 Deputy City Clerk $49.49 $59.39
55 Deputy City Manager $106.85
$100.84
$127.88
$129.97
$123.62
$128.22
$121.01
$153.46
$155.97
$148.35
$177,799
$167,815
$212,805
$216,279
$205,712
195
20 Deputy Director Technical Services Division
Deputy Fire Chief
81 Director Administrative Services/Chief Financial Officer Director Community Services72 45E
Item 8
Attachment H - Management and
Professional Salary Schedule

Item 8: Staff Report
Pg.
259

Packet Pg. 497 of 1138

City of Palo Alto
Management, Professional and Confidential Salary Schedule Effective 7/12/2025 (3% Increase) Hourly Rate Approx. Annual Salary
MidJob Code FLSA Status Classifications Grade
Codes
Min Mid Max Min Max
1012
133
128
131
2028
2005
49 Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Director Development Services 145A
55E
$86.94
$99.15
$108.25
$92.64
$78.08
$78.08
$89.40
$104.24
$105.57
$130.72
$67.66
$70.32
$75.58
$41.28
$117.60
$57.89
$38.65
$55.16
$48.56
$50.08
$36.60
$68.31
$78.34
$72.45
$55.48
$51.61
$55.41
$62.55
$72.15
$61.80
$68.31
$67.20
$59.35
$71.67
$108.67
$123.93
$135.31
$115.79
$97.60
$97.60
$111.75
$130.30
$131.96
$163.39
$84.57
$87.89
$94.47
$51.59
$147.00
$72.36
$48.31
$68.94
$60.70
$62.60
$45.75
$85.38
$97.92
$90.56
$69.34
$64.51
$69.26
$78.18
$90.18
$77.25
$85.38
$83.99
$74.18
$89.58
$130.41
$148.72
$162.38
$138.95
$117.12
$117.12
$134.10
$156.36
$158.36
$196.07
$101.49
$105.47
$113.37
$61.91
$180,836
$206,232
$225,160
$192,692
$162,407
$162,407
$185,952
$216,820
$219,586
$271,898
$140,733
$146,266
$157,207
$85,863
$226,034
$257,775
$281,445
$240,844
$203,008
$203,008
$232,440
$271,024
$274,477
$339,852
$175,906
$182,812
$196,498
$107,308
$305,760
$150,509
$100,485
$143,396
$126,256
$130,208
$95,160
$271,253
$309,338
$337,751
$289,016
$243,610
$243,610
$278,928
$325,229
$329,389
$407,826
$211,100
$219,378
$235,810
$128,773
$366,912
$180,628
$120,599
$172,079
$151,508
$156,250
$114,192
$213,117
$244,421
$226,055
$173,077
$161,034
$172,890
$195,146
$225,098
$192,816
$213,117
$209,644
$185,162
$223,600
Director Human Resources/Chief People Officer
Director Information Technology/Chief Information Officer Director Libraries
25E
60E
Director of Emergency Medical Services
Director Office of Emergency Services
Director Office of Management and Budget
Director Planning & Community Environment
Director Public Works/City Engineer
Director Utilities
215D
215D
120A
40E134
135
121
2002
172
2031
1005
139
163
101
90 30E
10E
Division Head Library Services
Division Manager Open Space, Parks & Golf
Division Manager Planning
260D
245D
220D
705M
35E
Executive Assistant to the City Manager
Fire Chief $176.40
$86.84
$244,608
$120,412
$80,392
Hearing Officer 480M
735P
510M
755P
585M
750P
235D
210D
360M
525M
630M
585M
495M
220D
450M
235D
419M
445M
223D
Human Resources Representative
Landscape Architect Park Planner
Legal Fellow
$57.98
$82.73 $114,733
$101,005
$104,167
$76,128
2015
171
401
79 $72.84
Management Analyst $75.12
Management Fellow $54.90
Manager Accounting $102.46
$117.51
$108.68
$83.21
$142,085
$162,948
$150,696
$115,399
$107,349
$115,253
$130,104
$150,072
$128,544
$142,085
$139,776
$123,448
$149,074
$177,591
$203,674
$188,365
$144,228
$134,181
$144,061
$162,615
$187,575
$160,680
$177,591
$174,700
$154,295
$186,327
2007
2023
38 Manager Airport
Manager Budget
Manager Communications
154
169
1013
63 Manager Community Services
Manager Community Services Sr Program
Manager Development Center
Manager Economic Development
Manager Employee Benefits
Manager Employee Relations & Training
Manager Environmental Control Program
Manager Facilities
$77.42
$83.12
$93.82
$108.22
$92.7044
45 $102.46
$100.79
$89.02
93 1116
2030 Manager Finance $107.50
Item 8
Attachment H - Management and
Professional Salary Schedule

Item 8: Staff Report
Pg.
260

Packet Pg. 498 of 1138

City of Palo Alto
Management, Professional and Confidential Salary Schedule Effective 7/12/2025 (3% Increase) Hourly Rate Approx. Annual Salary
MidJob Code FLSA Status Classifications Grade
Codes
Min Mid Max Min Max
127
2018
32 Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Manager Fleet 255D
540M
230D
230D
495M
565M
469M
345M
415M
235D
235D
250D
330M
235D
436M
205D
330M
525M
750P
585M
15E
$59.94
$58.15
$69.83
$66.07
$56.51
$54.72
$55.37
$72.56
$66.35
$64.63
$68.31
$60.77
$72.37
$66.62
$61.64
$80.39
$72.37
$53.83
$36.60
$50.08
$121.39
$107.07
$68.82
$80.06
$55.81
$68.55
$56.56
$58.65
$50.08
$60.41
$59.98
$77.06
$58.48
$52.68
$58.43
$74.92
$72.68
$87.28
$82.58
$70.63
$68.40
$69.21
$90.70
$82.93
$80.78
$85.38
$75.96
$90.46
$83.27
$77.04
$100.48
$90.46
$67.28
$45.75
$62.60
$151.73
$133.83
$86.02
$100.07
$69.76
$85.68
$70.70
$73.31
$62.60
$75.51
$74.97
$96.32
$73.09
$65.85
$73.03
$89.91
$87.22
$104.74
$99.10
$84.76
$82.08
$83.06
$108.84
$99.52
$96.94
$102.46
$91.16
$108.56
$99.93
$92.45
$120.58
$108.56
$80.74
$54.90
$75.12
$182.08
$160.60
$103.23
$120.08
$83.72
$102.82
$84.84
$87.98
$75.12
$90.62
$89.97
$115.59
$87.71
$79.02
$87.64
$124,676
$120,952
$145,247
$137,426
$117,541
$113,818
$115,170
$150,925
$138,008
$134,431
$142,085
$126,402
$150,530
$138,570
$128,212
$167,212
$150,530
$111,967
$76,128
$155,834
$151,175
$181,543
$171,767
$146,911
$142,272
$143,957
$188,656
$172,495
$168,023
$177,591
$157,997
$188,157
$173,202
$160,244
$208,999
$188,157
$139,943
$95,160
$187,013
$181,418
$217,860
$206,128
$176,301
$170,727
$172,765
$226,388
$207,002
$201,636
$213,117
$189,613
$225,805
$207,855
$192,296
$250,807
$225,805
$167,940
$114,192
$156,250
$378,727
$334,048
$214,719
$249,760
$174,138
$213,866
$176,468
$182,999
$156,250
$188,490
$187,138
$240,428
$182,437
$164,362
$182,292
Manager Human Services
Manager Information Technology
Manager Information Technology Security
Manager Laboratory Services
Manager Library Services
Manager Maintenance Operations
Manager Transportation Planning
Manager Planning
2006
158
78 92
26 51
103
454
2011
160
57 Manager Real Property
Manager Recruitment Division
Manager Revenue Collections
Manager Solid Waste
Manager Treasury, Debt & Investments
Manager Urban Forestry86
178
39 Manager Water Quality Control Plant
Manager Watershed Protection
Office of Emergency Services Coordinator
Performance Auditor I
1008
2024
100
148
2021
2016
TBD
2029
2003
2009
2012
166
117
2013
187
106
157
14 Performance Auditor II $104,167
$252,492
$222,706
$143,146
$166,525
$116,085
$142,584
$117,645
$121,992
$104,167
$125,653
$124,759
$160,285
$121,639
$109,575
$121,535
$130,208
$315,599
$278,367
$178,922
$208,146
$145,101
$178,215
$147,056
$152,485
$130,208
$157,061
$155,938
$200,346
$152,028
$136,968
$151,903
Police Chief
Chief Assistant City Attorney
Principal Business Analyst
Principal Transportation Engineer
Principal Planner
101A
310M
TBD
469M
360M
570M
495M
585M
525M
420M
300M
450M
545M
465M
Principal Management Analyst
Project Manager
Public Safety Communications Manager
Public Safety Program Manager
Senior Accountant
Senior Business Analyst - M
Senior Engineer
Senior Executive Assistant
Senior Human Resources Administrator
Senior Management Analyst
Item 8
Attachment H - Management and
Professional Salary Schedule

Item 8: Staff Report
Pg.
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Packet Pg. 499 of 1138

City of Palo Alto
Management, Professional and Confidential Salary Schedule Effective 7/12/2025 (3% Increase) Hourly Rate Approx. Annual Salary
MidJob Code FLSA Status Classifications Grade
Codes
Min Mid Max Min Max
130
444
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Senior Performance Auditor 510M
TBD
$55.16
$66.35
$77.06
$66.35
$52.56
$62.65
$62.65
$45.98
$48.98
$52.56
$55.44
$44.36
$53.83
$114.46
$68.94
$82.93
$96.32
$82.93
$65.69
$78.31
$78.31
$57.47
$61.22
$65.69
$69.30
$55.44
$67.28
$143.07
$82.73
$99.52
$115.59
$99.52
$78.83
$93.98
$93.98
$68.97
$73.47
$78.83
$83.16
$66.53
$80.74
$171.69
$114,733
$138,008
$160,285
$138,008
$109,325
$130,312
$130,312
$95,639
$143,396
$172,495
$200,346
$172,495
$136,636
$162,885
$162,885
$119,538
$127,338
$136,636
$144,144
$115,316
$139,943
$297,586
$172,079
$207,002
$240,428
$207,002
$163,967
$195,479
$195,479
$143,458
$152,818
$163,967
$172,973
$138,383
$167,940
$357,116
Senior Program Manager
53 Senior Project Manager 300M
420M
540M
480M
480M
675M
600M
540M
TBD
33 Senior Technologist
155 Superintendent Animal Services
Superintendent Community Services
Superintendent Recreation
83 1117
2022
161
Supervising Librarian
Supervisor Facilities Management
Supervisor Inspection and Surveying
Supervisor of Code Enforcement
Supervisor Warehouse
$101,879
$109,325
$115,316
$92,269
113
327
146 660M
525M
60E
181 Supervisor Water Quality Control Operations
Utilities Chief Operating Officer
$111,967
$238,0772027
Confidential
905 Non-Exempt Human Resources Technician
Non-Exempt Legal Secretary-Confidential
830C
820C
800C
810C
$32.48
$33.28
$39.35
$36.60
$40.60
$41.60
$49.18
$45.75
$48.72
$49.92
$59.02
$54.90
$67,559
$69,223
$81,848
$76,128
$84,448
$86,528
$102,295
$95,160
$101,338
$103,834
$122,762
$114,192
903
67 Exempt
Exempt
Secretary to City Attorney
1004 Senior Legal Secretary - Confidential
Item 8
Attachment H - Management and
Professional Salary Schedule

Item 8: Staff Report
Pg.
262

Packet Pg. 500 of 1138

City of Palo Alto
Management, Professional and Confidential Salary Schedule Effective 7/11/2026 (3% Increase) Hourly Rate Approx. Annual Salary
MidJob Code FLSA Status Classifications Grade
Codes
Min Mid Max Min Max
190
76 Non-Exempt Accountant 690P
750P
405M
100A
165A
630M
20E
$47.03
$37.71
$68.03
$111.13
$85.40
$51.92
$110.85
$92.09
$88.20
$85.30
$88.20
$79.69
$89.68
$88.65
$97.78
$83.27
$51.59
$73.42
$72.01
$86.99
$84.83
$77.85
$66.57
$90.04
$45.69
$49.40
$57.90
$47.18
$101.19
$67.12
$40.79
$88.05
$83.10
$105.38
$107.10
$101.87
$58.78
$47.13
$70.54
$56.56
$97,823
$78,437
$122,263
$98,031
$146,724
$117,645
$212,244
$346,736
$266,448
$161,970
$345,863
$287,332
$275,164
$266,136
$275,164
$248,644
$279,802
$276,599
$305,074
$259,792
$160,951
$229,071
$224,682
$271,399
$264,660
$242,903
$207,709
$280,904
$142,564
$154,108
$180,648
$147,202
$315,703
$209,394
$127,255
$274,727
$259,272
$328,786
$334,152
$317,824
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exampt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Administrative Assistant
115
132
108
109
107
73 Assistant Chief Building Official
Assistant Chief of Police
$85.03 $102.04
$166.70
$128.10
$77.87
$141,503
$231,151
$177,632
$107,994
$230,568
$191,548
$183,456
$177,424
$183,456
$165,756
$186,535
$184,392
$203,383
$173,202
$107,308
$152,714
$149,781
$180,940
$176,447
$161,928
$138,466
$187,284
$95,036
$176,863
$288,933
$222,040
$134,972
$288,205
$239,429
$229,300
$221,770
$229,300
$207,189
$233,168
$230,485
$254,218
$216,487
$134,119
$190,882
$187,221
$226,159
$220,543
$202,405
$173,077
$234,084
$118,789
$128,420
$150,530
$122,658
$263,079
$174,492
$106,039
$228,925
$216,050
$273,978
$278,450
$264,847
$138.91
$106.75
$64.89
Assistant City Attorney
Assistant City Clerk
Assistant City Manager $138.56
$115.11
$110.24
$106.62
$110.24
$99.61
$166.28
$138.14
$132.29
$127.95
$132.29
$119.54
$134.52
$132.98
$146.67
$124.90
$77.38
Assistant Director Administrative Services
Assistant Director Community Services
Assistant Director Human Resources
Assistant Director Information Technology
Assistant Director Library Services
Assistant Director Planning & Community Environment
Assistant Director Public Works
Assistant Director Sustainability & Climate Action
Assistant Fire Marshal
120A
150A
155A
150A
160A
130A
140A
TBD
126
1007
2032
2001
10 $112.10
$110.81
$122.22
$104.08
$64.48
143
2034
2035
168
102
30 TBD
Assistant Fleet Manager 585M
240D
390M
290M
135A
220D
235D
140A
660P
615M
585P
675M
125A
375M
720M
115A
200D
110A
50E
Assistant Manager WQCP $91.77 $110.13
$108.02
$130.48
$127.24
$116.78
$99.86
Assistant to the City Manager
Chief Building Official
$90.01
118
2008
112
95 $108.73
$106.03
$97.31
Chief Communications Officer
Chief Planning Official
Chief Procurement Officer $83.21
82 Chief Transportation Official
Claims Investigator
$112.54
$57.11
$135.05
$68.5496
24 Communication Specialist $61.74 $74.09 $102,752
$120,432
$98,135
89 Contracts Administrator $72.37 $86.85
186
191
11 Non-Exempt Coordinator Library Circulation $58.97 $70.77 Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Fire Marshal $126.48
$83.89
$151.78
$100.67
$61.18
$210,476
$139,610
$84,844
Deputy City Attorney
71 Deputy City Clerk $50.98
55 Deputy City Manager $110.06
$103.87
$131.72
$133.87
$127.33
$132.08
$124.65
$158.07
$160.65
$152.80
$183,144
$172,848
$219,191
$222,768
$211,890
195
20 Deputy Director Technical Services Division
Deputy Fire Chief
81 Director Administrative Services/Chief Financial Officer Director Community Services72 45E
Item 8
Attachment H - Management and
Professional Salary Schedule

Item 8: Staff Report
Pg.
263

Packet Pg. 501 of 1138

City of Palo Alto
Management, Professional and Confidential Salary Schedule Effective 7/11/2026 (3% Increase) Hourly Rate Approx. Annual Salary
MidJob Code FLSA Status Classifications Grade
Codes
Min Mid Max Min Max
1012
133
128
131
2028
2005
49 Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Director Development Services 145A
55E
$89.56
$102.12
$111.50
$95.42
$80.43
$80.43
$92.09
$107.37
$108.74
$134.64
$69.69
$72.43
$77.85
$42.52
$121.13
$59.64
$39.81
$56.81
$50.03
$51.59
$37.71
$70.36
$80.69
$74.63
$57.15
$53.16
$57.08
$64.43
$74.32
$63.66
$70.36
$69.21
$61.13
$73.82
$111.94
$127.65
$139.37
$119.27
$100.53
$100.53
$115.11
$134.21
$135.92
$168.30
$87.11
$90.53
$97.31
$53.14
$151.41
$74.54
$49.76
$71.01
$62.53
$64.48
$47.13
$87.95
$100.86
$93.28
$71.43
$66.45
$71.34
$80.53
$92.89
$79.57
$87.95
$86.51
$76.41
$92.27
$134.33
$153.18
$167.25
$143.13
$120.64
$120.64
$138.14
$161.06
$163.11
$201.96
$104.54
$108.64
$116.78
$63.77
$186,285
$212,410
$231,920
$198,474
$167,295
$167,295
$191,548
$223,330
$226,180
$280,052
$144,956
$150,655
$161,928
$88,442
$232,836
$265,512
$289,890
$248,082
$209,103
$209,103
$239,429
$279,157
$282,714
$350,064
$181,189
$188,303
$202,405
$110,532
$314,933
$155,044
$103,501
$147,701
$130,063
$134,119
$98,031
$279,407
$318,615
$347,880
$297,711
$250,932
$250,932
$287,332
$335,005
$339,269
$420,077
$217,444
$225,972
$242,903
$132,642
$377,936
$186,056
$124,218
$177,258
$156,084
$160,951
$117,645
$219,524
$251,764
$232,836
$178,298
$165,860
$178,069
$201,012
$231,858
$198,620
$219,524
$215,946
$190,736
$230,319
Director Human Resources/Chief People Officer
Director Information Technology/Chief Information Officer Director Libraries
25E
60E
Director of Emergency Medical Services
Director Office of Emergency Services
Director Office of Management and Budget
Director Planning & Community Environment
Director Public Works/City Engineer
Director Utilities
215D
215D
120A
40E134
135
121
2002
172
2031
1005
139
163
101
90 30E
10E
Division Head Library Services
Division Manager Open Space, Parks & Golf
Division Manager Planning
260D
245D
220D
705M
35E
Executive Assistant to the City Manager
Fire Chief $181.70
$89.45
$251,951
$124,052
$82,805
Hearing Officer 480M
735P
510M
755P
585M
750P
235D
210D
360M
525M
630M
585M
495M
220D
450M
235D
419M
445M
223D
Human Resources Representative
Landscape Architect Park Planner
Legal Fellow
$59.72
$85.22 $118,165
$104,063
$107,308
$78,437
2015
171
401
79 $75.04
Management Analyst $77.38
Management Fellow $56.56
Manager Accounting $105.54
$121.04
$111.94
$85.72
$146,349
$167,836
$155,231
$118,872
$110,573
$118,727
$134,015
$154,586
$132,413
$146,349
$143,957
$127,151
$153,546
$182,936
$209,789
$194,023
$148,575
$138,216
$148,388
$167,503
$193,212
$165,506
$182,936
$179,941
$158,933
$191,922
2007
2023
38 Manager Airport
Manager Budget
Manager Communications
154
169
1013
63 Manager Community Services
Manager Community Services Sr Program
Manager Development Center
Manager Economic Development
Manager Employee Benefits
Manager Employee Relations & Training
Manager Environmental Control Program
Manager Facilities
$79.74
$85.61
$96.64
$111.47
$95.4944
45 $105.54
$103.82
$91.70
93 1116
2030 Manager Finance $110.73
Item 8
Attachment H - Management and
Professional Salary Schedule

Item 8: Staff Report
Pg.
264

Packet Pg. 502 of 1138

City of Palo Alto
Management, Professional and Confidential Salary Schedule Effective 7/11/2026 (3% Increase) Hourly Rate Approx. Annual Salary
MidJob Code FLSA Status Classifications Grade
Codes
Min Mid Max Min Max
127
2018
32 Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Manager Fleet 255D
540M
230D
230D
495M
565M
469M
345M
415M
235D
235D
250D
330M
235D
436M
205D
330M
525M
750P
585M
15E
$61.74
$59.90
$71.92
$68.05
$58.20
$56.37
$57.04
$74.75
$68.34
$66.57
$70.36
$62.60
$74.55
$68.62
$63.49
$82.80
$74.55
$55.44
$37.71
$51.59
$125.04
$110.28
$70.89
$82.47
$57.49
$70.61
$58.27
$60.41
$51.59
$62.23
$61.78
$79.37
$60.24
$54.27
$60.19
$77.17
$74.87
$89.90
$85.06
$72.75
$70.46
$71.29
$93.43
$85.42
$83.21
$87.95
$78.24
$93.18
$85.77
$79.36
$103.50
$93.18
$69.30
$47.13
$64.48
$156.29
$137.85
$88.61
$103.08
$71.86
$88.26
$72.83
$75.51
$64.48
$77.78
$77.22
$99.21
$75.29
$67.83
$75.23
$92.61
$89.85
$107.88
$102.08
$87.30
$84.56
$85.55
$112.12
$102.51
$99.86
$105.54
$93.89
$111.82
$102.93
$95.24
$124.20
$111.82
$83.16
$56.56
$77.38
$187.55
$165.42
$106.34
$123.70
$86.24
$105.92
$87.40
$90.62
$77.38
$93.34
$92.67
$119.06
$90.35
$81.40
$90.28
$128,420
$124,592
$149,594
$141,544
$121,056
$117,250
$118,644
$155,480
$142,148
$138,466
$146,349
$130,208
$155,064
$142,730
$132,060
$172,224
$155,064
$115,316
$78,437
$160,514
$155,730
$186,992
$176,925
$151,320
$146,557
$148,284
$194,335
$177,674
$173,077
$182,936
$162,740
$193,815
$178,402
$165,069
$215,280
$193,815
$144,144
$98,031
$192,629
$186,888
$224,391
$212,327
$181,584
$175,885
$177,944
$233,210
$213,221
$207,709
$219,524
$195,292
$232,586
$214,095
$198,100
$258,336
$232,586
$172,973
$117,645
$160,951
$390,104
$344,074
$221,188
$257,296
$179,380
$220,314
$181,792
$188,490
$160,951
$194,148
$192,754
$247,645
$187,928
$169,312
$187,783
Manager Human Services
Manager Information Technology
Manager Information Technology Security
Manager Laboratory Services
Manager Library Services
Manager Maintenance Operations
Manager Transportation Planning
Manager Planning
2006
158
78 92
26 51
103
454
2011
160
57 Manager Real Property
Manager Recruitment Division
Manager Revenue Collections
Manager Solid Waste
Manager Treasury, Debt & Investments
Manager Urban Forestry86
178
39 Manager Water Quality Control Plant
Manager Watershed Protection
Office of Emergency Services Coordinator
Performance Auditor I
1008
2024
100
148
2021
2016
TBD
2029
2003
2009
2012
166
117
2013
187
106
157
14 Performance Auditor II $107,308
$260,084
$229,383
$147,452
$171,538
$119,580
$146,869
$121,202
$125,653
$107,308
$129,439
$128,503
$165,090
$125,300
$112,882
$125,196
$134,119
$325,084
$286,728
$184,309
$214,407
$149,469
$183,581
$151,487
$157,061
$134,119
$161,783
$160,618
$206,357
$156,604
$141,087
$156,479
Police Chief
Chief Assistant City Attorney
Principal Business Analyst
Principal Transportation Engineer
Principal Planner
101A
310M
TBD
469M
360M
570M
495M
585M
525M
420M
300M
450M
545M
465M
Principal Management Analyst
Project Manager
Public Safety Communications Manager
Public Safety Program Manager
Senior Accountant
Senior Business Analyst - M
Senior Engineer
Senior Executive Assistant
Senior Human Resources Administrator
Senior Management Analyst
Item 8
Attachment H - Management and
Professional Salary Schedule

Item 8: Staff Report
Pg.
265

Packet Pg. 503 of 1138

City of Palo Alto
Management, Professional and Confidential Salary Schedule Effective 7/11/2026 (3% Increase) Hourly Rate Approx. Annual Salary
MidJob Code FLSA Status Classifications Grade
Codes
Min Mid Max Min Max
130
444
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Senior Performance Auditor 510M
TBD
$56.81
$68.34
$79.37
$68.34
$54.14
$64.53
$64.53
$47.36
$50.45
$54.14
$57.11
$45.69
$55.44
$117.90
$71.01
$85.42
$99.21
$85.42
$67.67
$80.66
$80.66
$59.20
$63.06
$67.67
$71.38
$57.11
$69.30
$147.37
$85.22
$102.51
$119.06
$102.51
$81.21
$96.80
$96.80
$71.04
$75.68
$81.21
$85.66
$68.54
$83.16
$176.85
$118,165
$142,148
$165,090
$142,148
$112,612
$134,223
$134,223
$98,509
$147,701
$177,674
$206,357
$177,674
$140,754
$167,773
$167,773
$123,136
$131,165
$140,754
$148,471
$118,789
$144,144
$306,530
$177,258
$213,221
$247,645
$213,221
$168,917
$201,344
$201,344
$147,764
$157,415
$168,917
$178,173
$142,564
$172,973
$367,848
Senior Program Manager
53 Senior Project Manager 300M
420M
540M
480M
480M
675M
600M
540M
TBD
33 Senior Technologist
155 Superintendent Animal Services
Superintendent Community Services
Superintendent Recreation
83 1117
2022
161
Supervising Librarian
Supervisor Facilities Management
Supervisor Inspection and Surveying
Supervisor of Code Enforcement
Supervisor Warehouse
$104,936
$112,612
$118,789
$95,036
113
327
146 660M
525M
60E
181 Supervisor Water Quality Control Operations
Utilities Chief Operating Officer
$115,316
$245,2322027
Confidential
905 Non-Exempt Human Resources Technician
Non-Exempt Legal Secretary-Confidential
830C
820C
800C
810C
$33.46
$34.28
$40.53
$37.71
$41.82
$42.85
$50.66
$47.13
$50.19
$51.42
$60.80
$56.56
$69,597
$71,303
$84,303
$78,437
$86,986
$89,128
$105,373
$98,031
$104,396
$106,954
$126,464
$117,645
903
67 Exempt
Exempt
Secretary to City Attorney
1004 Senior Legal Secretary - Confidential
Item 8
Attachment H - Management and
Professional Salary Schedule

Item 8: Staff Report
Pg.
266

Packet Pg. 504 of 1138

City of Palo Alto
Management, Professional and Confidential Salary Schedule Effective 7/10/2027 (3% Increase) Hourly Rate Approx. Annual Salary
MidJob Code FLSA Status Classifications Grade
Codes
Min Mid Max Min Max
190
76 Non-Exempt Accountant 690P
750P
405M
100A
165A
630M
20E
$48.44
$38.84
$70.08
$114.47
$87.97
$53.48
$114.18
$94.86
$90.84
$87.86
$90.84
$82.08
$92.38
$91.32
$100.72
$85.77
$53.14
$75.63
$74.18
$89.60
$87.38
$80.19
$68.57
$92.74
$47.07
$50.88
$59.64
$48.60
$104.23
$69.13
$42.01
$90.70
$85.60
$108.55
$110.32
$104.92
$60.55
$48.55
$72.66
$58.26
$100,756
$80,788
$125,944
$100,984
$182,188
$297,607
$228,717
$139,028
$296,858
$246,626
$236,184
$228,426
$236,184
$213,408
$240,178
$237,412
$261,852
$222,997
$138,154
$196,623
$192,858
$232,960
$227,178
$208,479
$178,277
$241,114
$122,367
$132,288
$155,064
$126,340
$270,983
$179,733
$109,221
$235,810
$222,540
$282,215
$286,812
$272,792
$151,133
$121,181
$218,629
$357,136
$274,477
$166,837
$356,242
$295,964
$283,421
$274,124
$283,421
$256,090
$288,226
$284,898
$314,226
$267,613
$165,797
$235,956
$231,442
$279,552
$272,626
$250,183
$213,949
$289,349
$146,848
$158,746
$186,077
$151,612
$325,188
$215,696
$131,082
$282,984
$267,052
$338,666
$344,178
$327,351
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exampt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Administrative Assistant
115
132
108
109
107
73 Assistant Chief Building Official
Assistant Chief of Police
$87.59 $105.11
$171.70
$131.96
$80.21
$145,767
$238,098
$182,978
$111,239
$237,495
$197,309
$188,948
$182,749
$188,948
$170,727
$192,151
$189,946
$209,498
$178,402
$110,532
$157,311
$154,295
$186,368
$181,751
$166,796
$142,626
$192,900
$97,906
$143.08
$109.96
$66.84
Assistant City Attorney
Assistant City Clerk
Assistant City Manager $142.72
$118.57
$113.55
$109.82
$113.55
$102.60
$115.47
$114.14
$125.89
$107.21
$66.42
$171.27
$142.29
$136.26
$131.79
$136.26
$123.12
$138.57
$136.97
$151.07
$128.66
$79.71
Assistant Director Administrative Services
Assistant Director Community Services
Assistant Director Human Resources
Assistant Director Information Technology
Assistant Director Library Services
Assistant Director Planning & Community Environment
Assistant Director Public Works
Assistant Director Sustainability & Climate Action
Assistant Fire Marshal
120A
150A
155A
150A
160A
130A
140A
TBD
126
1007
2032
2001
10 143
2034
2035
168
102
30 TBD
Assistant Fleet Manager 585M
240D
390M
290M
135A
220D
235D
140A
660P
615M
585P
675M
125A
375M
720M
115A
200D
110A
50E
Assistant Manager WQCP $94.53 $113.44
$111.27
$134.40
$131.07
$120.28
$102.86
$139.11
$70.60
Assistant to the City Manager
Chief Building Official
$92.72
118
2008
112
95 $112.00
$109.22
$100.23
$85.71
Chief Communications Officer
Chief Planning Official
Chief Procurement Officer
82 Chief Transportation Official
Claims Investigator
$115.92
$58.8396
24 Communication Specialist $63.60 $76.32 $105,831
$124,052
$101,088
$216,799
$143,791
$87,381
89 Contracts Administrator $74.55 $89.46
186
191
11 Non-Exempt Coordinator Library Circulation $60.74 $72.89 Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Fire Marshal $130.28
$86.41
$156.34
$103.70
$63.02
Deputy City Attorney
71 Deputy City Clerk $52.51
55 Deputy City Manager $113.37
$106.99
$135.68
$137.89
$131.15
$136.05
$128.39
$162.82
$165.47
$157.38
$188,656
$178,048
$225,784
$229,466
$218,234
195
20 Deputy Director Technical Services Division
Deputy Fire Chief
81 Director Administrative Services/Chief Financial Officer Director Community Services72 45E
Item 8
Attachment H - Management and
Professional Salary Schedule

Item 8: Staff Report
Pg.
267

Packet Pg. 505 of 1138

City of Palo Alto
Management, Professional and Confidential Salary Schedule Effective 7/10/2027 (3% Increase) Hourly Rate Approx. Annual Salary
MidJob Code FLSA Status Classifications Grade
Codes
Min Mid Max Min Max
1012
133
128
131
2028
2005
49 Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Director Development Services 145A
55E
$92.24
$105.19
$114.85
$98.28
$82.84
$82.84
$94.86
$110.60
$112.00
$138.68
$71.79
$74.60
$80.19
$43.80
$124.77
$61.43
$41.01
$58.52
$51.53
$53.14
$38.84
$72.48
$83.12
$76.87
$58.87
$54.76
$58.80
$66.36
$76.55
$65.57
$72.48
$71.29
$62.97
$76.04
$115.30
$131.48
$143.56
$122.85
$103.55
$103.55
$118.57
$138.24
$140.00
$173.35
$89.73
$93.25
$100.23
$54.74
$155.96
$76.78
$51.26
$73.15
$64.41
$66.42
$48.55
$90.59
$103.89
$96.08
$73.58
$68.45
$73.49
$82.95
$95.68
$81.96
$90.59
$89.11
$78.71
$95.04
$138.36
$157.78
$172.28
$147.42
$124.26
$124.26
$142.29
$165.89
$168.00
$208.02
$107.68
$111.90
$120.28
$65.69
$191,860
$218,796
$238,888
$204,423
$172,308
$172,308
$197,309
$230,048
$232,960
$288,455
$149,324
$155,168
$166,796
$91,104
$239,824
$273,479
$298,605
$255,528
$215,384
$215,384
$246,626
$287,540
$291,200
$360,568
$186,639
$193,960
$208,479
$113,860
$324,397
$159,703
$106,621
$152,152
$133,973
$138,154
$100,984
$188,428
$216,092
$199,847
$153,047
$142,376
$152,860
$172,536
$199,015
$170,477
$188,428
$185,349
$163,717
$197,684
$287,789
$328,183
$358,343
$306,634
$258,461
$258,461
$295,964
$345,052
$349,440
$432,682
$223,975
$232,752
$250,183
$136,636
$389,293
$191,652
$127,962
$182,583
$160,784
$165,797
$121,181
$226,117
$259,314
$239,824
$183,664
$170,852
$183,436
$207,044
$238,826
$204,589
$226,117
$222,436
$196,477
$237,224
Director Human Resources/Chief People Officer
Director Information Technology/Chief Information Officer Director Libraries
25E
60E
Director of Emergency Medical Services
Director Office of Emergency Services
Director Office of Management and Budget
Director Planning & Community Environment
Director Public Works/City Engineer
Director Utilities
215D
215D
120A
40E134
135
121
2002
172
2031
1005
139
163
101
90 30E
10E
Division Head Library Services
Division Manager Open Space, Parks & Golf
Division Manager Planning
260D
245D
220D
705M
35E
Executive Assistant to the City Manager
Fire Chief $187.16
$92.14
$259,522
$127,775
$85,301
Hearing Officer 480M
735P
510M
755P
585M
750P
235D
210D
360M
525M
630M
585M
495M
220D
450M
235D
419M
445M
223D
Human Resources Representative
Landscape Architect Park Planner
Legal Fellow
$61.52
$87.78 $121,722
$107,183
$110,532
$80,788
2015
171
401
79 $77.30
Management Analyst $79.71
Management Fellow $58.26
Manager Accounting $108.71
$124.67
$115.30
$88.30
$150,759
$172,890
$159,890
$122,450
$113,901
$122,304
$138,029
$159,224
$136,386
$150,759
$148,284
$130,978
$158,164
2007
2023
38 Manager Airport
Manager Budget
Manager Communications
154
169
1013
63 Manager Community Services
Manager Community Services Sr Program
Manager Development Center
Manager Economic Development
Manager Employee Benefits
Manager Employee Relations & Training
Manager Environmental Control Program
Manager Facilities
$82.14
$88.19
$99.54
$114.82
$98.3644
45 $108.71
$106.94
$94.46
93 1116
2030 Manager Finance $114.05
Item 8
Attachment H - Management and
Professional Salary Schedule

Item 8: Staff Report
Pg.
268

Packet Pg. 506 of 1138

City of Palo Alto
Management, Professional and Confidential Salary Schedule Effective 7/10/2027 (3% Increase) Hourly Rate Approx. Annual Salary
MidJob Code FLSA Status Classifications Grade
Codes
Min Mid Max Min Max
127
2018
32 Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Manager Fleet 255D
540M
230D
230D
495M
565M
469M
345M
415M
235D
235D
250D
330M
235D
436M
205D
330M
525M
750P
585M
15E
$63.60
$61.70
$74.08
$70.10
$59.96
$58.07
$58.75
$77.00
$70.40
$68.57
$72.48
$64.48
$76.79
$70.68
$65.40
$85.29
$76.79
$57.11
$38.84
$53.14
$128.79
$113.60
$73.02
$84.95
$59.22
$72.73
$60.02
$62.23
$53.14
$64.10
$63.64
$81.76
$62.04
$55.90
$62.00
$79.49
$77.12
$92.60
$87.62
$74.94
$72.58
$73.43
$96.24
$87.99
$85.71
$90.59
$80.59
$95.98
$88.35
$81.75
$106.61
$95.98
$71.38
$48.55
$66.42
$160.98
$141.99
$91.27
$106.18
$74.02
$90.91
$75.02
$77.78
$66.42
$80.12
$79.54
$102.19
$77.55
$69.87
$77.49
$95.39
$92.55
$111.12
$105.15
$89.93
$87.10
$88.12
$115.49
$105.59
$102.86
$108.71
$96.71
$115.18
$106.02
$98.10
$127.94
$115.18
$85.66
$58.26
$79.71
$193.18
$170.39
$109.53
$127.42
$88.83
$109.10
$90.03
$93.34
$79.71
$96.15
$95.45
$122.63
$93.06
$83.85
$92.99
$132,288
$128,336
$154,087
$145,808
$124,717
$120,786
$122,200
$160,160
$146,432
$142,626
$150,759
$134,119
$159,724
$147,015
$136,032
$177,404
$159,724
$118,789
$80,788
$165,340
$160,410
$192,608
$182,250
$155,876
$150,967
$152,735
$200,180
$183,020
$178,277
$188,428
$167,628
$199,639
$183,768
$170,040
$221,749
$199,639
$148,471
$100,984
$138,154
$334,839
$295,340
$189,842
$220,855
$153,962
$189,093
$156,042
$161,783
$138,154
$166,650
$165,444
$212,556
$161,304
$145,330
$161,180
$198,412
$192,504
$231,130
$218,712
$187,055
$181,168
$183,290
$240,220
$219,628
$213,949
$226,117
$201,157
$239,575
$220,522
$204,048
$266,116
$239,575
$178,173
$121,181
$165,797
$401,815
$354,412
$227,823
$265,034
$184,767
$226,928
$187,263
$194,148
$165,797
$199,992
$198,536
$255,071
$193,565
$174,408
$193,420
Manager Human Services
Manager Information Technology
Manager Information Technology Security
Manager Laboratory Services
Manager Library Services
Manager Maintenance Operations
Manager Transportation Planning
Manager Planning
2006
158
78 92
26 51
103
454
2011
160
57 Manager Real Property
Manager Recruitment Division
Manager Revenue Collections
Manager Solid Waste
Manager Treasury, Debt & Investments
Manager Urban Forestry86
178
39 Manager Water Quality Control Plant
Manager Watershed Protection
Office of Emergency Services Coordinator
Performance Auditor I
1008
2024
100
148
2021
2016
TBD
2029
2003
2009
2012
166
117
2013
187
106
157
14 Performance Auditor II $110,532
$267,884
$236,288
$151,882
$176,696
$123,178
$151,279
$124,842
$129,439
$110,532
$133,328
$132,372
$170,061
$129,044
$116,272
$128,960
Police Chief
Chief Assistant City Attorney
Principal Business Analyst
Principal Transportation Engineer
Principal Planner
101A
310M
TBD
469M
360M
570M
495M
585M
525M
420M
300M
450M
545M
465M
Principal Management Analyst
Project Manager
Public Safety Communications Manager
Public Safety Program Manager
Senior Accountant
Senior Business Analyst - M
Senior Engineer
Senior Executive Assistant
Senior Human Resources Administrator
Senior Management Analyst
Item 8
Attachment H - Management and
Professional Salary Schedule

Item 8: Staff Report
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Packet Pg. 507 of 1138

City of Palo Alto
Management, Professional and Confidential Salary Schedule Effective 7/10/2027 (3% Increase) Hourly Rate Approx. Annual Salary
MidJob Code FLSA Status Classifications Grade
Codes
Min Mid Max Min Max
130
444
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Senior Performance Auditor 510M
TBD
$58.52
$70.40
$81.76
$70.40
$55.77
$66.47
$66.47
$48.79
$51.97
$55.77
$58.83
$47.07
$57.11
$121.44
$73.15
$87.99
$102.19
$87.99
$69.71
$83.08
$83.08
$60.98
$64.96
$69.71
$73.53
$58.83
$71.38
$151.80
$87.78
$105.59
$122.63
$105.59
$83.66
$99.70
$99.70
$73.18
$77.96
$83.66
$88.24
$70.60
$85.66
$182.16
$121,722
$146,432
$170,061
$146,432
$116,002
$138,258
$138,258
$101,484
$108,098
$116,002
$122,367
$97,906
$152,152
$183,020
$212,556
$183,020
$144,997
$172,807
$172,807
$126,839
$135,117
$144,997
$152,943
$122,367
$148,471
$315,744
$182,583
$219,628
$255,071
$219,628
$174,013
$207,376
$207,376
$152,215
$162,157
$174,013
$183,540
$146,848
$178,173
$378,893
Senior Program Manager
53 Senior Project Manager 300M
420M
540M
480M
480M
675M
600M
540M
TBD
33 Senior Technologist
155 Superintendent Animal Services
Superintendent Community Services
Superintendent Recreation
83 1117
2022
161
Supervising Librarian
Supervisor Facilities Management
Supervisor Inspection and Surveying
Supervisor of Code Enforcement
Supervisor Warehouse
113
327
146 660M
525M
60E
181 Supervisor Water Quality Control Operations
Utilities Chief Operating Officer
$118,789
$252,5962027
Confidential
905 Non-Exempt Human Resources Technician
Non-Exempt Legal Secretary-Confidential
830C
820C
800C
810C
$34.47
$35.32
$41.75
$38.84
$43.08
$44.14
$52.18
$48.55
$51.70
$52.97
$62.62
$58.26
$71,698
$73,466
$86,840
$80,788
$89,607
$91,812
$108,535
$100,984
$107,536
$110,178
$130,250
$121,181
903
67 Exempt
Exempt
Secretary to City Attorney
1004 Senior Legal Secretary - Confidential
Item 8
Attachment H - Management and
Professional Salary Schedule

Item 8: Staff Report
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Packet Pg. 508 of 1138

City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: June 16, 2025
Report #:2505-4726
TITLE
Approval of a Surveillance Use Policy for Security Cameras at Ada's Café at Mitchell Park Community Center and Library; CEQA Status - Not a Project

RECOMMENDATION
Staff recommend that the City Council approve the attached surveillance use policy (Attachment A) for the use of security cameras to enhance security and safety and deter unauthorized or criminal activity at Ada’s Cafe at the Mitchell Park Community Center and Library.

BACKGROUND
Ada’s Café leases space from the City of Palo Alto to operate a public café at the Mitchell Park Community Center and Library. Incidents of vandalism to Ada’s property, such as outdoor furniture and equipment, have increased in the past year and the owners have an interest in installing security cameras to deter such incidents, increase security and safety around the exterior of the café, and provide evidence to the Palo Alto Police Department (PAPD) if an incident should occur. Additionally, interior cameras provide safety and security for staff and is a requirement of Ada’s Workers Compensation policy.

ANALYSIS
Palo Alto’s Surveillance Technology Ordinance, codified PAMC § 2.30.620, et seq., sets criteria and procedures to protect personal privacy in the acquisition and use of surveillance technology and provide for ongoing oversight. Security camera technology is “surveillance technology” as defined by the ordinance. The ordinance requires City Council approval of the acquisition of new surveillance technology and of a Surveillance Use Policy specific to each new approved technology. In approving new surveillance technology, the Council must determine that its benefits outweigh the associated costs and concerns.

Item 9
Item 9 Staff Report

Item 9: Staff Report
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The ordinance sets forth specific elements that must be present in a Surveillance Use Policy, including limitations on use, access, and retention, as well as a description of compliance procedures. In coordination with Ada’s Café, staff has prepared and attached a surveillance Use Policy, which addresses each of these elements.

Prior to approval of a new surveillance activity by the Council, the ordinance requires the completion of a Surveillance Evaluation, consisting of five specific elements below.

Surveillance Evaluation
1) A description of the surveillance technology, including how it works and what information is captured;
The surveillance technology will include security cameras and monitoring systems designed to capture real-time video and audio footage. These devices will record activities in and outside of the café. Security cameras around the café will focus on entry points and café seating. The technology may also include motion detectors and alarm systems that notify designated personnel of suspicious activities. 2)Information on the proposed purpose, use and benefits of the surveillance technology; The primary purpose of implementing surveillance technology is to enhance the safety and security of Ada’s Café, which has been subject to vandalism, theft, and tampering with furniture and property of the café. It will also provide evidence to the Palo Alto Police Department (PAPD) if an incident should occur inside or outside the café. 3)The location or locations where the surveillance technology may be used; Surveillance technology will be located inside and outside of Ada’s Café - it includes strategic points, including wide angle of the outdoor seating area. This will provide comprehensive coverage of high-risk areas prone to vandalism, theft or other criminal activity.
4)Existing federal, state and local laws and regulations application to the surveillance technology and the information it captures; the potential impacts on civil liberties and privacy; and proposals to mitigate and manage any impacts; Surveillance technology will comply with applicable laws related to video and audio recording. This includes Labor Code section 435, which forbids employers from recording in a restroom, locker room, or changing room; and Penal Code section 632, which prohibits recording audio of “confidential communication,” subject to exceptions such as for public meetings under Penal Code section 632(c).

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Item 9 Staff Report

Item 9: Staff Report
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Mitigation Actions:
• Access to surveillance footage will be limited to authorized Ada’s Café management, and City police personnel for law enforcement purposes. • Encryption and access control mechanisms will safeguard the footage. 5)The costs of the surveillance technology, including acquisition, maintenance, personnel and other costs, and current or potential sources of funding.

All costs to purchase, install, and maintain the cameras will be the responsibility of Ada’s Café.

FISCAL/RESOURCE IMPACT
There is no cost to the city. Ada’s Café will purchase, install and maintain security cameras.

STAKEHOLDER ENGAGEMENT
The Community Services Department coordinated with Ada’s Café, and multiple departments to develop the policy, including the City Manager’s Office, IT, Library, and the City Attorney’s Office.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because approval of this surveillance policy is an administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).

ATTACHMENTS
Attachment A: Surveillance Use Policy for Ada’s Café
APPROVED BY:

Kristen O'Kane, Community Services Director
Item 9
Item 9 Staff Report

Item 9: Staff Report
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NOT YET APPROVED
8 1
7 9
Surveillance Use Policy for Security Cameras Outside Ada’s Café at Mitchell Park Community Center and Library
Ada’s Café (Ada’s) leases space from the City of Palo Alto (City) at the Mitchell Park Community Center and Library. Ada’s has installed security cameras in the café for safety and security and has an interest in purchasing and installing security cameras on the exterior of the café to deter vandalism and capture incidents of criminal activities.

The owners of Ada’s are responsible for all costs associated with the purchase, installation and maintenance of the cameras and will be responsible for complying with this policy.

In accordance with the Palo Alto Municipal Code Section PAMC § 2.30.680(d), the Surveillance Use Policy for the use of security cameras by Ada’s within and on City- owned property is as follows:

1. Intended Purpose. The intent of security cameras is to enhance the security and safety of Ada’s staff and the public and deter and capture incidents of vandalism and other criminal activity at Ada’s Café.

2. Authorized Uses. The Owners and City personnel may only access surveillance video (“footage”) for official and legitimate security, safety, and law enforcement purposes consistent with this Policy.

The following uses of security cameras are specifically prohibited:
a. Harssament or intimidation. It is a violation of this Policy to use the system to harass and/or intimidate any individual or group.
b. Personal Use. It is a violation of this Policy to use the system for any personal purpose.
c. First Amendment Rights. It is a violation of this Policy to use the system or data for the purpose or known effect of infringing upon First Amendment rights of any person.
d. Invasion of Privacy. It is a violation of this Policy to use the system or data in any manner contrary to local, state, and federal privacy laws.

3. Information Collected. Security cameras will record video and audio (if permitted by law). Depending on the specific technology used, metadata such as time, date, and location of the cameras may be documented with the video.

4. Safeguards. All footage will be closely safeguarded and protected by both procedural and technological means. Ada’s Café will observe the following safeguards regarding access to and use of stored data:

Item 9
Attachment A -
Surveillance Use Policy
for Adas Cafe

Item 9: Staff Report
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NOT YET APPROVED
8 1
7 9
a. All footage shall be accessible only through a login/password-protected system with multi-factor authentication (MFA).
b. The following individuals from Ada’s Café shall have access to the footage: Owners/Founders Kathleen Foley-Huges and Tony Hughes, and Deputy Director Peter Hughes. Footage may be forwarded to law enforcement, including Palo Alto Police Department (PAPD), for investigation. Once reviewed, PAPD shall control footage under their own Department policies.
c. Persons approved to access footage under this policy are permitted to access the data for legitimate safety, security, and law enforcement purposes only, such as when the footage relates to a specific incident or criminal investigation.

5. Retention. Ada’s shall retain footage on a looping basis for thirty days. Footage will be retained longer than the retention period if it is reasonably believed it will become evidence in a specific criminal investigation or is subject to a discovery request or other lawful action to produce records.

6. Access by non-City Entities. The footage may be shared with law enforcement or prosecutorial agencies for official law enforcement purposes or as required by law or court order.

7. Compliance Procedures. Kathleen Foley-Huges, Tony Hughes, and Peter Hughes are responsible for ensuring compliance with procedures, including, but not limited to:
a. Ensuring only designated individuals are allowed access to footage when authorized by this policy.
b. Ensuring the security and retention of the footage collected and compliance with applicable laws.
c. Give written notice to the City if any of the persons listed in this policy are changed to other staff.

Item 9
Attachment A -
Surveillance Use Policy
for Adas Cafe

Item 9: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: June 16, 2025
Report #:2505-4730
TITLE
City Council Appointment of the Castilleja Neighborhood Committee in Accordance with Condition Number 33 Contained in Record of Land Use Action 2022-22 Authorizing Redevelopment of Private School at 1310 Bryant Street (Castilleja School). Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section 15061(b)(3).

RECOMMENDATION
Staff recommend the Council appoint Rob Levitsky, Andie Reed, and Nancy Tuck to serve two- year terms on the Council-appointed Neighborhood Committee.

BACKGROUND/DISCUSSION
On June 6, 2022 the City Council approved several discretionary entitlements and a legislative change to the municipal code to enable the redevelopment, and increased enrollment for, Castilleja School located at the subject address. The project received significant public input and, in its deliberation, the City Council added a condition of approval requiring the formation of a Council-appointed neighborhood committee to ensure opportunities for continued dialogue between the school and area residents concerned about neighborhood impacts.

Condition number 33 in the record of land use action1 established the requirement for a three- person committee that has the following advisory responsibilities:

I. Review transportation demand management reports and performance; II. Review impacts related to special events and make recommendations to the Planning and Development Services Director on future increases to the number of special events; III. Review noise complaints and other impacts on the neighboring community related to these conditions of approval;
IV. Coordinate with the school in organizing twice annual community meetings; and, V. Provide recommendations to the Planning and Development Services Director on whether the school has met conditions that would trigger changes in student enrollment.
1 June 6, 2022 Record of Land Use Action: www.cityofpaloalto.org/files/f65eb77d-4d17-41a6-8158- 44f1df3b649f/Casti-Signed-ROLUA-and-Exhibit.pdf
Item 10
Item 10 Staff Report

Item 10: Staff Report
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The committee is charged with convening within 30 days of submission of a transportation demand management report and as needed to review other issues within its purview. Any recommendation from the committee shall be submitted to the Planning and Development Services Director within 14 days of the meeting. As a Council-created committee, all meetings are subject to the Brown Act which requires that meetings be noticed 72 hours in advance, prohibits committee members from deliberating over items under their purview outside of noticed meetings, and prohibits receiving information serially from other committee members.

The condition requiring a neighborhood committee does not stipulate a process for selecting committee members and staff has not engaged in a formal process to solicit names for recommendation. Communication of this opportunity was provided through the neighborhood committee and school, and three names were advanced to staff. This includes current member Rob Levitsky and a new representative, Andie Reed advanced by the neighborhood committee.

Castilleja School has also advanced Nancy Tuck who is also reportedly a resident within the 500- foot radius of the school and has signaled an interest to participate on the committee. In the absence of any other nominees, staff recommends these representatives form the committee for the next two-year term.

If Council supports the recommended candidates, staff will follow up with a request for each committee member to sign an affidavit asserting they live within 500 feet of Castilleja School and understand the individual and committee requirements under the Brown Act.

While this action is being considered on the City Council’s consent calendar, if any three Councilmembers would like to discuss or deliberate on the neighborhood committee assignments or process, this item could be pulled from consent and scheduled for a future public hearing.

FISCAL/RESOURCE IMPACT
The appointment of these individuals to the Castilleja Neighborhood Committee does not result in a resource impact.

STAKEHOLDER ENGAGEMENT
Staff has not engaged in a formal process to solicit names for recommendation or selection to this committee, however, the committee members have reported reaching out to interested neighbors.

ENVIRONMENTAL REVIEW
Exempt from CEQA Pursuant to CEQA Guidelines Section 15061(b)(3).

ATTACHMENTS
Attachment A: Properties within 500-foot Distance to Castilleja APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 10
Item 10 Staff Report

Item 10: Staff Report
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ALMA STREET

CHURCHILL AVENUE

EMERSON STREET

COLERIDGE AVENUE

EMERSON STREET
ENUE

KINGSLEY AVENUE

ALMA STREET

MONA STREET

LINCOLN AVENUE

RAMONA STREET

EMERSON STREET

H STREET

ADERO ROAD

MELVILLE AVENUE

EMERSON STREET

KELLOGG AVENUE

EMERSON STREET

KELLOGG AVENUE

CHURCHILL AVENUE

BRYANT STREET

COLERIDGE AVENUE
CHUR

CHILL AVENUE

WAVERLEY STREET

KELLOGG AVENU
E

BRYANT STREET

EMBARCADERO ROAD

WAVERLEY STREET

MELVILLE AVENUE

EMBARCADERO ROAD

EMERSON STREET

KINGSLEY AVENUE

BRYANT STREET

TT STREET

ADDISON AVENUE

BRYANT STREET

LINCOLN AVENUE

MELVILLE AVENUE

WAVERLEY STREET

COWPER STREET
COWP

ER STREET

KINGSLEY AVENUE

WAVERLEY STREET

LINCOLN AV

LANE D EAST
T LANE 59 EAST
WH

ITMAN COURT

ALMA STREET

PENINSULA CORRIDOR JOINT POWERS BOARD

OR JOINT POWERS BOARD

PENINSULA CORRIDOR JOINT
1235
1433
1435
1437
140
127
138
119
148
5 1027
1121
1436
1446
1452
1464
358
334
490
127-131
118
85 255
231
1657-166
3 342-352
1017-1023
1033-103
7 1427-1431
1645-1651
112-120
126-130
120-124
361
353
949
301
319
327
940
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Attachment A - Properties
within 500-foot Distance
to Castilleja

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: June 16, 2025
Report #:2506-4769
TITLE
Accept Electric System Reliability Key Performance Indices; CEQA – Not a Project

RECOMMENDATION
Staff recommends that the City Council accept Palo Alto’s electric system reliability indices and recommended goals and reporting.

EXECUTIVE SUMMARY
As a common practice, publicly owned and investor-owned utilities track electric system reliability through indices that track the average frequency, duration, and restoration time of unplanned power outages. These indices include System Average Interruption Duration Index (SAIDI), System average Interruption Frequency Index (SAIFI), and Customer Average Interruption Duration Index (CAIDI). Since these indices are standardized across the utility sector, they provide a good measure of system performance and the ability to compare performance between various utility systems. Palo Alto’s electric system reliability shows improvement over time and compares favorably to other utilities within the region and nationally. These metrics are reported quarterly to the Utilities Advisory Commission (UAC); staff recommend prospectively to continue this practice and, forward this reporting to the City Council with the addition of at least annual comparisons of Palo Alto’s performance to adjacent systems (PG&E) and nationally to the City Council as an information item. This additional reporting will ensure heightened awareness of these metrics as the City continues to work to achieve its reliability and electrifications goals.

BACKGROUND
On a quarterly basis, City staff present outage indices to the Utility Advisory Commission. As an industry standard, power outages and overall system reliability are tracked through standardized indices that track average system performance over a defined period, typically 12 months. Three indices are used to track the average duration of outages (SAIDI), average frequency of outages (SAIFI), and the average restoration times for customers experiencing outages (CAIDI).

Presentation of this data provides the UAC and City Council with an ongoing indication of system Item 11
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performance and the impact of newly implemented operating procedures, replacement of legacy equipment, and the implementation of modern utility equipment.

The City Council has established these three electric reliability metrics as Key Performance Indicators (KPI) and tasked City staff with recommending goals for reliability metrics and standardized reporting methodology. This staff report presents current reliability metrics for Palo Alto based upon outage data through the third quarter of fiscal year 2025, recommendations for a reporting methodology, and annual reliability goals.

Below is a brief overview of these metrics.
•SAIDI (System Average Interruption Duration Index): This measures the average duration of a power outage for the average customer within a given period (usually a year). A lower SAIDI means customers experience less time without power, indicating better overall reliability.
•SAIFI (System Average Interruption Frequency Index): This measures how often the average customer should expect to experience a power outage over a given period (typically 12-months). A lower SAIFI means customers experience fewer power outages, indicating better service reliability.
•CAIDI (Customer Average Interruption Duration Index): This measures the average time it takes to restore service to customers who have experienced an outage. A lower CAIDI generally means utilities are able to restore power more quickly when outages do occur, reflecting efficient outage response and quick restoration times.

In essence, these metrics are used by utilities to assess and improve the reliability of their electrical distribution systems. Lower values across all three indicate a more reliable and efficient power supply for customers.

ANALYSIS
For Fiscal Year 2025, Palo Alto’s system reliability numbers are improved from FY 2023 and FY2024. Some of the improvements can be attributed to changes in system restoration procedures while some improvements are due to milder winter weather. Impacts of weather and large system outages are seen when comparing the SAIDI, SAIFI, and CAIDI numbers on the left side of the chart below (Major Event Days Included) against the right side (Major Event Days Excluded).

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Major Event Days Included Major Event Days Excluded

FY SAIDI SAIFI CAIDI SAIDI SAIFI CAIDI
2019 114.7 0.935 122.7 44.4 0.330 134.6
2020 63.9 0.486 131.4 26.2 0.248 105.6
2021 70.6 0.720 98.1 14.7 0.053 279.9
2022 7.2 0.159 45.4 1.2 0.009 132.8
2023 148.9 1.378 108.0 26.1 0.164 159.6
2024 141.4 0.691 204.5 66.8 0.385 173.5
2025* 82.8 0.630 131.4 38.4 0.252 152.5
*FY2025 numbers are preliminary and represent outages through the first three quarters of the current fiscal year.

Final numbers will be updated after the FY ends and all outage data can be reviewed for accuracy.

Two sets of numbers are presented for the current and past fiscal years. One set represents all primary level outages (excludes single transformer and single customer outages), and a second set of data removes Major Event Days (MED) from the data to remove the influence of significant weather events or other large outages that do not represent normal day-to-day operations. By identifying and removing MEDs from the outage indices, year over year trends can be established to better indicate if system performance is improving or declining. For the data presented, MED are defined as 24-hour periods with more than 10 percent of Palo Alto’s electric customers impacted by power outages.

Tracking the City’s year-to-year reliability indices is a good measure of internal progress toward improved reliability but does not provide an indicator of industry-wide (national) or regional system reliability. The charts further below present PG&E’s outages indices for the DeAnza Division and American Public Power Association’s (APPA) tracking of nationwide system reliability. PG&E’s DeAnza Division, which covers the cities and surrounding areas of Cupertino, Los Altos, Los Gatos, and Mountain View, represents our local region’s electric system reliability and the impacts of local weather events. APPA’s collection of nationwide system reliability is narrowed to show the cutoff for the best performing systems (top 25 percent) in the United States. Combined, these two comparisons provide additional relevance to Palo Alto’s efforts to provide safe and highly reliable electric service. At the time of writing this staff report, 2024 data was not available for both PG&E’s and APPA’s system reliability numbers.

PG&E DeAnza DISTRICT w/ MED PG&E DeAnza DISTRICT w/o MED Calendar Year SAIDI SAIFI CAIDI SAIDI SAIFI CAIDI
2019 612.7 1.601 382.7 91.3 0.873 104.6
2020 249.6 1.433 174.1 83.1 0.711 117
2021 163.6 1.43 114.4 121 0.787 153.8
2022 207.3 1.689 122.7 120.4 1.001 120.3
2023 459.8 2.161 212.8 173.3 1.002 173
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National Indices With MED National Indices Without MED
Calendar Year SAIDI SAIFI CAIDI SAIDI SAIFI CAIDI
2019 Top Quartile POU 85.0 0.890 86.9 55.8 0.660 72.4
2020 Top Quartile POU 86.2 0.800 91.3 56.2 0.630 73.4
2021 Top Quartile POU 84.8 0.853 86.2 53.1 0.632 74.3
2022 Top Quartile POU 79.8 0.849 83.4 54.6 0.640 73.5
2023 Top Quartile POU 80.9 0.818 90.6 51.6 0.600 75.4
Five Year Average 83.3 0.842 87.7 82.9 0.632 73.8
In comparison of both regional and national outage reliability indices, staff is recommending Palo Alto set a goal of remaining within the five-year average of APPA’s top quartile for all three indices (SAIDI, SAIFI, and CAIDI) when excluding MED. Staff is further recommending that Palo Alto, at all times, outperform PG&E’s system reliability numbers for the DeAnza Division. Setting these targets will allow comparisons on a national level, regardless of weather events, and on a regional level including and excluding the impacts of localized weather events.

Future quarterly and annual presentations of outages indices will include these comparisons as the comparisons aid the UAC, City Council, and utility staff in identifying trends in system reliability.

FISCAL/RESOURCE IMPACT
This item contains no fiscal or resource impact. Future discussions may involve presentations of operating procedures, staffing, and recommended capital replacement projects intended to improve system performance.

STAKEHOLDER ENGAGEMENT
No stakeholder engagement was sought on this item as the data collected is internal to City departments and comparison data is available publicly.

ENVIRONMENTAL REVIEW
City Council action on this item is not a project as defined by CEQA because the City Council discussion of system reliability and goals is an administrative activity. CEQA Guidelines section 15378 (b)(2).

ATTACHMENTS
None.

APPROVED BY:

Alan Kurotori, Director of Utilities
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: June 16, 2025
Report #:2505-4747
TITLE
Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3)

RECOMMENDATION
Staff recommends that the City Council:

1. Uphold the Director of Planning and Development Services’ formal interpretation dated May 8, 2025, concluding that noncomplying residential gross floor area may not be removed and restored elsewhere on the property pursuant to Palo Alto Municipal Code (PAMC) Chapter 18.70, denying the associated appeal; and

2. Direct staff to prepare a text amendment authorizing the Director of Planning and Development Services to consider or approve de minimis exceptions from noncomplying facility regulations and similar minor adjustments that are not impactful to adjacent properties or public realm.

EXECUTIVE SUMMARY
On May 8, 2025, the Director of Planning and Development Services issued a formal interpretation of PAMC Chapter 18.70, concluding that noncomplying gross floor area (GFA) may not be removed and replaced elsewhere on a site, even where total GFA is not increased.

This interpretation was prompted by a minor remodel of a single-family home that remains over the district’s GFA limit. A timely appeal challenged the interpretation, arguing that the project does not intensify noncompliance and should be allowed.

Staff believe that the Director‘s interpretation reflects the most reasonable and consistent application of the Municipal Code and that it supports the broader policy goal of reducing Item 12
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noncomplying conditions over time. While the proposal in the appellant‘s case is minor, permitting it would render portions of the code meaningless and could create a precedent for larger changes inconsistent with the Code’s purpose. Staff recommend that the City Council deny the appeal, uphold the interpretation, and direct staff to prepare a future code amendment to allow administrative de minimis exceptions for minor residential modifications that do not impact neighbors or the public realm.

BACKGROUND
PAMC Section 18.01.025 authorizes the Director of Planning and Development Services to interpret Titles 16, 18, and 21 of the Municipal Code. Formal interpretations are posted publicly and may be appealed within 14 calendar days under Section 18.77.070.

On May 8, 2025, the Director issued an interpretation concluding that PAMC Chapter 18.70 prohibits the relocation, or removal and replacement, of noncomplying GFA, see Attachment A.

Noncomplying GFA arises when a structure was legally constructed under earlier zoning rules but exceeds current GFA limits due to annexation or subsequent code amendments. The interpretation affirms that once a noncomplying feature is voluntarily removed, it may not be restored elsewhere on the site, except in a conforming manner.

The proposed project that prompted the interpretation involves a single-family residence located in the R-1 zone in a previously unincorporated area of the Barron Park neighborhood.

The existing structure exceeds the maximum allowable GFA for the district, rendering it noncomplying. Any alterations are therefore evaluated in accordance with Chapter 18.70, which governs maintenance, enlargement, and replacement of noncomplying facilities. In this case, the project proposes a residential remodel modifying a second-floor loft by removing stair access such that it no longer qualifies as GFA. No exterior modifications are proposed for this portion of the project. Concurrently, the applicant proposes to remodel, expand and enclose new floor with new exterior walls toward the side and rear of the residence on the first floor.

The amount of enclosed space would then count as GFA, but would not exceed the GFA removed from the loft and would be located at the side and rear of the residence.

For the reasons set forth in Attachment A, the Director determined that this relocation of noncomplying GFA constituted a prohibited action under both PAMC 18.70.080 and 18.70.100.

A timely appeal was submitted on May 14, 2025.

Appeal Procedures
This item appears on the Consent Calendar. If it is not pulled by three members of the City Council, the City Council’s action to deny the appeal and uphold the interpretation will be final upon adoption of the Consent Calendar. If the item is pulled, it will be agendized for a future noticed public hearing.

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Appellant’s Position
The appellant’s statements are provided in Attachment B and summarized below.

The appellant argues that the Director’s interpretation improperly applies PAMC Section

18.70.100, which they assert only governs scenarios involving damage or destruction, not voluntary modifications. They contend that their project is instead governed by Section

18.70.080, which allows improvements to noncomplying structures that do not increase the degree or manner of noncompliance.

The appellant further disputes the use of the term “relocation,” arguing it introduces a new standard not supported by the Code. The appellant asserts that moving floor area from one location to another within the same structure does not alter the manner of noncompliance, particularly if the total GFA does not increase.

The appellant further argues that the interpretation functions as a de facto code amendment, effectively restricting common remodels without formal legislative action. They raise concerns about fairness and procedural overreach and cite principles of statutory interpretation, asserting that municipal ordinances should be interpreted according to their plain meaning. The appellant argues that the City’s interpretation would not be entitled to any deference from a court and that in the event the matter resulted in litigation, the City would expose itself to liability for attorneys’ fees.

ANALYSIS
The Director’s interpretation is grounded in the plain reading and combined intent of PAMC Sections 18.70.080, 18.70.090, and 18.70.100. These provisions set forth the regulatory framework to implement the general application of the nonconforming facilities chapter of the code and allow the continued use and maintenance of noncomplying facilities while limiting future modifications of such facilities. These three sections serve related but distinct functions in the regulation of noncomplying structures and should be read together to understand their cumulative policy intent.

Section 18.70.080 governs enlargement to noncomplying structures and prohibits changes that increase noncompliance. It further clarifies that it does not prohibit changes that do not affect the particular degree or manner of noncompliance. Section 18.70.090 addresses maintenance and repair, including the limits of allowable structural alterations. Section 18.70.100 regulates the replacement or reconstruction of noncomplying facilities following their partial or full removal. Together, they reinforce a consistent policy that disfavors reestablishing nonconforming conditions once removed or altered. More specifically:

Section 18.70.080 states:
a) Except as specifically permitted by subsections (b) and (c) hereof or by Section 18.12.050(a), no enlargement, expansion, or other addition or Item 12
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improvement to a noncomplying facility shall be permitted which increases the noncompliance. This section shall not be construed to prohibit enlargement or improvement of a facility, otherwise permitted by this title, which does not affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.
b) …. (not applicable to residential properties)
The appellant asserts that their proposal is permitted by PAMC Section 18.17.080 because it does not affect the particular degree or manner of non-compliance. In essence, the appellant argues that a change in the location of a noncomplying feature cannot be considered a change in the manner of noncompliance because the word “manner” refers only to the general type of noncompliance (e.g. height, setback, or GFA) and cannot refer to “location.” The appellant’s position, however, eliminates the word “particular” from the code. The word “particular” adds a level of specificity to the requisite analysis. The “particular manner” of noncompliance is reasonably understood to mean the specific way in which a structure is noncomplying, which would include location. Rather than introducing new code language, as suggested by the appellant, the Director’s interpretation reflects a reasonable reading of the code that gives effect to all of its provisions.

While the proposal at issue is a relatively minor change to the rear and side of the house, the code must be applied consistently across all residential project types. If the appellant’s reasoning were followed, a one-story home that exceeds the maximum GFA limit could demolish a large portion of the existing structure and rebuild the same amount of floor area as a second story. Though a second story may otherwise be allowed, this reconfiguration would significantly alter the form, massing, and presentation of the noncomplying structure, an outcome that meaningfully affects the manner in which the facility does not comply.

Rather, this provision is intended to distinguish between improvements that preserve the nature and location of a nonconformity and those that materially alter it. For example, a home with a legal noncomplying front yard setback may be permitted to construct a second story or expand toward the rear of the property, so long as the new work complies with all applicable development standards and does not intensify or extend the existing noncompliance. In that scenario, the front yard setback remains unchanged and the particular degree and manner of noncompliance are not affected.

Section 18.70.090 states:
a) Normal and routine maintenance of a noncomplying facility shall be permitted for the purpose of preserving its existing condition, retarding or eliminating wear and tear or physical depreciation, or complying with the requirements of law.

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b) Incidental alterations to a noncomplying facility shall be permitted, provided such alterations do not increase the degree of noncompliance, or otherwise increase the discrepancy between existing conditions and the requirements of this title.
c) Structural alterations to a noncomplying facility shall be permitted when necessary to comply with the requirements of law, or to accommodate a conforming use when such alterations do not increase the degree of noncompliance, or otherwise increase the discrepancy between existing conditions and requirements of this title.

This section governs routine maintenance and repair of noncomplying structures. While it permits work necessary to preserve the structure’s safe and sanitary condition, it does not allow for modifications that expand or reconfigure the noncompliance. Because the proposed project involves removing existing GFA and enclosing a separate area with new exterior walls, it constitutes a reconfiguration, not routine repair, and is therefore outside the scope of Section

18.70.090.

Section 18.70.100 states:

A noncomplying facility which is damaged or destroyed by any means except ordinary wear and tear and depreciation may be reconstructed only as a complying facility, except as follows:
a) When the damage or destruction of a noncomplying facility affects only a portion of the facility that did not constitute or contribute to the noncompliance, said portion may be repaired or reconstructed to its previous configuration.
b) When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration. In no event shall such replacement or construction create, cause, or increase any noncompliance with the requirements of this title. c) …. (not applicable to residentially zoned properties) Item 12
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d) Notwithstanding subsections (a), (b) and (c) hereof, a noncomplying facility housing a conforming use in the R-1 and RE zones, which when built was a complying facility, which is damaged or destroyed by non- willful means (i.e., acts of God) shall be permitted to be replaced, on the same site, and in its previous configuration, without necessity to comply with the current site development regulations, provided that any such replacement shall not result in increased floor area, height, length or any other increase in the size of the facility.
e) Except as otherwise provided in this section with regard to replacement or reconstruction of a portion of a facility to its previous noncomplying condition, all reconstruction shall be subject to all applicable laws, regulations, and procedures otherwise governing construction on the site at the time said construction is undertaken.

The appellant acknowledges that that PAMC Section 18.70.100 sensibly requires that if a noncomplying structure is deliberately demolished and subsequently replaced or reconstructed, that such replacement or reconstruction may not reinstate the noncompliance.

The appellant argues this section is inapplicable to their project, however, because they do not propose to “replace” or “reconstruct” the GFA that is being removed. The appellant relies on the Merriam-Webster dictionary to assert that the term “replace” does not encompass the “relocation” of GFA from one place to another. In fact, the Merriam-Webster definition of “replace,” also includes “to take the place of especially as a substitute or successor,” and “to put something new in the place of.” Under both of these ordinary dictionary definitions, the appellants proposal to remove GFA from a second story and add GFA to the ground floor could reasonably be considered “replacement.” Again, the Director’s interpretation does not introduce the term ‘relocation’ into the code, but instead relies on the ordinary meaning of the terms already present.

Reconstructing noncomplying GFA elsewhere on the site, regardless of whether the total GFA increases, constitutes an effort to replicate or replace the prior noncompliance in a new location. The provision makes clear that unless narrowly exempted, such features may not be rebuilt. This aligns with the broader purpose of Chapter 18.70 to phase out noncomplying conditions over time. The appellant’s interpretation is not only contrary to this purpose, but it leads to an absurd result: there is no rational explanation for why the code would prohibit reconstruction of a noncomplying feature once removed, while permitting the same noncompliance to be reintroduced elsewhere as a new improvement.

Finally, the appellant asserts that their project does not involve the relocation of GFA but instead involves the demolition of GFA on the upper floor and a separate enlargement on the ground floor. This argument attempts to conceptually separate the removal and addition components of the project. However, if treated independently, the ground floor expansion would constitute a prohibited increase in noncompliance. The appellant’s position relies on Item 12
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linking the two elements to claim there is no net change in the degree of noncompliance, an approach that selectively combines and separates aspects of the project depending on the desired outcome.

The City Council’s determination will be entitled to significant deference from a court The appellant incorrectly asserts that the City’s interpretation of its own municipal code is entitled to no deference. While this may be true when the City has interpreted a statute or regulation promulgated by the State or another agency, it is quite the opposite when the City is interpreting its own codes. A city’s interpretation of the meaning and scope of its own regulations is entitled to deference (Harrington v. City of Davis (2017) 16 Cal.App.5th 420, 434-

45.) Greater deference is particularly appropriate where, as here, there are “indications of careful consideration by senior agency officials.” (Ibid.) Zoning Code Amendment
While the Director’s interpretation is a supportable application of the code and consistent with its text and policy objectives under PAMC Section 18.01.025, staff acknowledge that the proposed project involves a relatively minor change that is unlikely to have a noticeable impact on neighbors or the broader community. The issue raised in this case is not about the scale or character of the change itself, but how to apply the existing language of the Municipal Code consistently.

Because the plain reading of PAMC Chapter 18.70 does not allow for the reconfiguration or reinstatement of noncomplying GFA, staff could not identify a path forward that would permit this type of project without contorting the code and potentially setting a precedent for more significant and impactful modifications.

To address similar situations and introduce flexibility for minor residential projects, staff recommend that the City Council direct the preparation of a future amendment to the Municipal Code that would authorize the Director of Planning and Development Services to consider or approve de minimis deviations from the code, offering an alternative to strict adherence for minor cases. Such a provision would allow small-scale projects to proceed where the resulting change is clearly not consequential to adjacent properties or the broader community but may technically conflict with zoning regulations. The language and scope of the proposed amendment would be reviewed with the Planning and Transportation Commission and presented to the City Council for consideration at a future date. The timeline for this work has not been established and would likely be coordinated with other upcoming zoning code updates.

FISCAL/RESOURCE IMPACT
The recommendation in this report is not anticipated to have a significant fiscal or budgetary impact. Work related to the recommended text amendment will be folded into other work as able and can reasonably be absorbed within the department budget and resources.

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STAKEHOLDER ENGAGEMENT
The interpretation was posted on the City’s website in accordance with PAMC Section

18.01.025. Notice was provided to known interested parties. One formal appeal was submitted.

ENVIRONMENTAL REVIEW
The City Council’s action is categorically exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b)(3), the common sense exemption, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

ATTACHMENTS
Attachment A: Director's Interpretation of PAMC Chapter 19.70 Attachment B: Appeal Statement
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 12
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PLANNING & DEVELOPMENT SERVICES

250 Hamilton Avenue, 5th Floor
Palo Alto, CA 94301
(650) 329-2441

CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2441

DATE: May 8, 2025
TO: Planning & Development Services Staff and Interested Community Members FROM: Jonathan Lait, Director
SUBJECT: Director’s Interpretation Regarding Relocation of Noncomplying Residential Gross Floor Area Under PAMC Chapter 18.70

Authority
Palo Alto Municipal Code (PAMC) Section 18.01.025 authorizes the Director of Planning and Development Services to interpret provisions of Titles 16, 18, and 21 of the Palo Alto Municipal Code.

When warranted, formal written interpretations may be issued and posted on the City’s website. Such decisions become effective fourteen days after posting unless appealed in accordance with PAMC Section 18.77.070.

Director’s Interpretation
Where an existing residential building exceeds the allowable gross floor area (GFA) PAMC Chapter 18.70 prohibits the relocation of non-complying floor area from one location to another.

Applicable Code Section(s)
• 18.70.080: Noncomplying Facility – Enlargement
• 18.70.090: Noncomplying facility – Maintenance and repair • 18.70.100: Noncomplying facility – Replacement
Discussion
Palo Alto’s zoning code limits the allowable GFA on residential properties to regulate bulk, scale, and neighborhood compatibility. Some structures that comply with development standards at the time they are constructed may become noncomplying as a result of a change in the applicable regulations (e.g. rezoning or annexation). PAMC Chapter 18.70 sets forth the rules under which such noncomplying facilities may be maintained. Relocation of noncomplying GFA may be independently prohibited by PAMC Sections 18.70.080 and 18.70.100; in addition, relocated GFA does not fall within the scope of permitted alterations under PAMC Section 18.70.090.

PAMC Section 18.70.080: Noncomplying Facility – Enlargement Section 18.70.080, subd. (a), expressly prohibits any improvement to a noncomplying facility that increases the noncompliance. If further clarifies that it does not prohibit improvement of a facility, Docusign Envelope ID: 3A798A6F-1F4E-4D19-8275-72D1C645C1F0 Item 12
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otherwise permitted by Title 18 (the zoning code), which does not affect the particular degree or manner of the noncompliance.

Taken holistically, staff interprets this section to prohibit an improvement that does affect the particular degree or manner of the noncompliance. For example, if a structure is noncomplying because a parapet at the rear of the property exceeds the maximum height by five feet, it would not be permitted to demolish the parapet and reconstruct it identically at the front of the property instead. Even if the new parapet would not increase the amount by which the structure exceeds the maximum height, the change in location would affect the particular manner of noncompliance. Similarly, the relocation of non-complying floor area would violate this prohibition.

Section 18.70.080 is intended to allow the improvement of a noncomplying facility in a manner unrelated to the particular degree or manner of noncompliance. For example, it would allow a structure that is non-complying for height to receive additional GFA provided the new area otherwise complied with the zoning code (e.g. setbacks, lot coverage and floor area limitations, height).

PAMC Section 18.70.090: Noncomplying Facility – Maintenance and repair Section 18.70.090 allows for the maintenance and repair of a noncomplying facility. It allows for incidental alterations that do not increase the degree of noncompliance. It also allows for structural alterations that do not increase the degree of noncompliance, so long as they are “necessary to comply with the requirements of law or to accommodate a conforming use.” Incidental alterations are defined in PAMC Section 18.04.030 to mean alterations to the interior of a building that do not increase its structural strength; alterations to mechanical, electrical and plumbing systems; and changes to fenestrations that do not increase the building’s structural strength. Structural alterations are defined as any other alteration.

Staff interprets this section to allow structural alterations only when necessary to comply with the requirements of law (e.g. building code) or when necessary to accommodate a change to a conforming use (e.g. to provide sufficient egress for a residential use). Absent a change to a conforming use, structural alterations would only be permitted to comply with requirements of law. An alternative interpretation would leave the phrase “necessary to accommodate a conforming use” without any meaning and collapse the distinction between the allowances for incidental and structural alterations in Section 18.70.090.

Section 18.70.090 is intended to allow incidental maintenance and repair of noncomplying facilities in a manner that does not increase noncompliance. It is less permissive regarding structural alterations. The relocation of noncomplying floor area will typically involve structural alterations; in the absence of a change to a conforming use, such alterations are only permitted to the extent necessary to comply with law.

PAMC Section 18.70.100: Noncomplying Facility – Replacement Section 18.70.100 governs the reconstruction of a noncomplying facility that is damaged or destroyed by any means other than ordinary wear and tear. This includes willful damage and destruction as part of a Docusign Envelope ID: 3A798A6F-1F4E-4D19-8275-72D1C645C1F0 Item 12
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construction project as well as non-willful means.1 The general rule expressed this section is that a damaged or destroyed noncomplying facility may only be reconstructed as a complying facility unless an enumerated exception applies.

Proposed relocation of noncomplying GFA falls under subdivision (b), which states that a portion of a facility that contributes to the noncompliance, if damaged or destroyed, may only be replaced or reconstructed in a manner that does not reinstate the noncompliance or the degree of noncompliance.2 Staff interprets the term “replacement” to include replacing demolished GFA in the same or a different location. This section therefore prohibits the removal of floor area that was willfully destroyed and contributed to a noncomplying GFA condition, as well as its reinstatement – whether in whole or in part – at any location within the structure. For example, a project that removes existing GFA and proposes to reconstruct that floor area in a location that requires demolition and reconstruction of exterior building walls to accommodate the removed GFA would involve reconstruction that constitutes a reinstatement of the noncompliance.

The interpretations provided herein are the only ones that give coherent and internally consistent meaning to each of the code sections discussed. In particular, if either section 18.70.080(a) or section

18.70.090(c) is interpreted to allow the relocation of noncomplying floor area, it is unclear what meaning section 18.70.100(b) could have. These interpretations are also consistent with prior direction from the City Council regarding interpretation of similar provisions in PAMC section 18.18.120; in 2015, the City Council directed that the noncomplying facility provision in that section should not be interpreted to allow the relocation of noncomplying floor area in the CD district.

_____________________________
Jonathan Lait, Director
Planning and Development Services
Attachment: Applicable Municipal Code Sections

Posted on Website: May 8, 2025
Appeal Deadline: May 22, 2025

1 An alternative interpretation that applies section 18.70.100 only to non -willful damage or destruction would render subdivision (d) unnecessary, as that section provides a different rule for noncomplying facilities that are damaged and destroyed by non-willful means.
2 Subdivision (b) also provides an exception where the cost to replace or reconstruct the facility in compliance would be at least double the cost to replace or reconstruct the facility to its previous configuration; this analysis assumes that the exception is not triggered.

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18.70.080 Noncomplying facility - Enlargement.
(a) Except as specifically permitted by subsections (b) and (c) hereof or by Section 18.12.050(a), no enlargement, expansion, or other addition or improvement to a noncomplying facility shall be permitted which increases the noncompliance. This section shall not be construed to prohibit enlargement or improvement of a facility, otherwise permitted by this title, which does not affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title. (b) Except in areas designated as special study areas, the director of planning and development services may permit minor additions of floor area to noncomplying facilities in the commercial CC, CS and CN zones and in the industrial MOR, ROLM, RP and GM districts, subject to applicable site development regulations, for purposes of on-site employee amenities, resource conservation, or code compliance, upon the determination that such minor additions will not, of themselves, generate substantial additional employment. Such additions may include, but not be limited to, the following:
(1) Area designed and used solely for providing on-site services to employees of the facility, such as recreational facilities, credit unions, cafeterias and day care facilities; (2) Area designated for resource conservation, such as trash compactors, recycling and thermal storage facilities; and
(3) Area designed and required for hazardous materials storage facilities, handicapped access, and seismic upgrades.
(Ord. 5494 § 3, 2020: Ord. 5381 § 7, 2016: Ord. 5373 § 22 (part), 2016: Ord. 3890 § 20, 1989: Ord. 3683 § 18, 1986: Ord. 3048 (part), 1978)

18.70.090 Noncomplying facility - Maintenance and repair. (a) Normal and routine maintenance of a noncomplying facility shall be permitted for the purpose of preserving its existing condition, retarding or eliminating wear and tear or physical depreciation, or complying with the requirements of law.
(b) Incidental alterations to a noncomplying facility shall be permitted, provided such alterations do not increase the degree of noncompliance, or otherwise increase the discrepancy between existing conditions and the requirements of this title.
(c) Structural alterations to a noncomplying facility shall be permitted when necessary to comply with the requirements of law, or to accommodate a conforming use when such alterations do not increase the degree of noncompliance, or otherwise increase the discrepancy between existing conditions and requirements of this title.
(Ord. 5381 § 7, 2016: Ord. 3683 § 17, 1986: Ord. 3048 (part), 1978)

18.70.100 Noncomplying facility - Replacement.

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(b) When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration. In no event shall such replacement or construction create, cause, or increase any noncompliance with the requirements of this title. (c) Notwithstanding subsections (a) and (b) hereof, a noncomplying facility in the commercial CS, CN and CC zones and the industrial MOR, ROLM, RP and GM districts, except for those areas designated as special study areas, existing on August 1, 1989, which when built was a complying facility, shall be permitted to be remodeled, improved or replaced in accordance with applicable site development regulations other than floor area ratio, provided that any such remodeling, improvement or replacement shall not result in increased floor area.
(d) Notwithstanding subsections (a), (b) and (c) hereof, a noncomplying facility housing a conforming use in the R-1 and RE zones, which when built was a complying facility, which is damaged or destroyed by non-willful means (i.e., acts of God) shall be permitted to be replaced, on the same site, and in its previous configuration, without necessity to comply with the current site development regulations, provided that any such replacement shall not result in increased floor area, height, length or any other increase in the size of the facility.
(e) Except as otherwise provided in this section with regard to replacement or reconstruction of a portion of a facility to its previous noncomplying condition, all reconstruction shall be subject to all applicable laws, regulations, and procedures otherwise governing construction on the site at the time said construction is undertaken.
(Ord. 5381 § 7, 2016: Ord. 4102 § 1 (part), 1992: Ord. 4016 § 46, 1991: Ord. 3905 § 18, 1989: Ord. 3890 § 21, 1989: Ord. 3048 (part), 1978)
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1 Subject – Appeal of Director’s Application of PAMC § 18.70.100 to Project Concerning 3886 Magnolia Drive, #25BLD-00025

Dear Mayor Lauing and Members of the City Council:

My wife and I hereby appeal the Director’s May 8, 2025, Interpretation Regarding Relocation of Noncomplying Residential Gross Floor Area Under PAMC Chapter 18.70 (the “Determination”).

The Planning Department, on the sole basis of the Determination, has rejected our application for a small remodel of our home in Barron Park which was built in 1948, long prior to Palo Alto’s annexure of our section of the City of Palo Alto.

Background on Our Proposed Project

Our home is currently two stories (although the second story is quite small and is essentially a permitted loft space). Our project is designed to convert our home fully into a single-floor home (in that respect, it is very much unlike the many second story additions routinely processed by the Planning Department). Essentially, the aim of the project is to create a closet in the room that we are using as our primary bedroom and relocate some utilities, such as the laundry and additional kitchen and cleaning storage, to a permitted rumpus room and provide interior access to that room from our existing kitchen.

Currently, we maintain a closet in an upstairs, permitted loft area which entails navigating a steep and narrow staircase (the “Unsafe Permitted Loft Area”). The project does not enlarge the building envelope, add floor area, or replace any space that is “damaged or destroyed.” It removes from FAR the Unsafe Permitted Loft Area and does not “replace” or “reconstruct” that space (i.e., there will no longer be an upstairs loft area in my home and my home will be a single floor structure).

Despite the project’s very modest scope (which is wholly consistent with the City’s goals of enabling aging in place), the Director has arbitrarily and erroneously invoked Palo Alto Municipal Code § 18.70.100 to deny the application. By its express and unambiguous terms, that provision applies when property is “damaged or destroyed” and that portion is “replaced” or “reconstructed.” We are, in fact, not “replacing” or “reconstructing” the Unsafe Permitted Loft Area and thus § 18.70.100 is inapplicable on its face. Instead, § 18.70.080 applies and our project was carefully designed to comply with that provision.

Analysis

Relevant Law and the Standard of Review

When interpreting an ordinance, courts apply the same rules of interpretation applicable to statutes. See Save Our Heritage Organisation v. City of San Diego (2015) 237 Cal.App.4th 163, 174, 187 Cal.Rptr.3d 754.). Courts first examine the language of the ordinance, giving the words their usual and ordinary meaning, in the context of the ordinance as a whole and its purpose. See Audio Visual Services Group, Inc. v. Super. Ct., 182 Cal. Rptr. 3d 748, 754 (Cal. App. 2d Dist. 2015). In addition, courts “apply common sense to the language at hand” and interpret a Item 12
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2 provision in a manner that makes “it workable and reasonable” and avoids an absurd result.

Wasatch Property Management v. Degrate (2005) 35 Cal.4th 1111, 1122, 29 Cal.Rptr.3d 262, 112 P.3d 647.

Interpretation of the Municipal Code presents a pure question of law and as such the Director’s interpretation is entitled to no deference. See MacIsaac v. Waste Management Collection & Recycling, Inc. (2005) 134 Cal.App.4th 1076, 10. See also Manriquez v. Gourley, 130 Cal. Rptr. 2d 209, 214 (Cal. App. 4th Dist. 2003) (review of an agency’s factual determinations are subject to the substantial evidence rule but “where … the determinative question is one of statutory or regulatory interpretation, an issue of law, [courts] may exercise … independent judgment.”).

If we are forced to proceed with an appeal to Santa Clara Superior Court, the City would face the prospect of a significant award of attorneys’ fee award as we would be seeking to vindicate the public’s interest in the proper interpretation of the Palo Alto Municipal Code. See CCP § 1858 (“Upon motion, a court may award attorneys’ fees to a successful party against one or more opposing parties in any action which has resulted in the enforcement of an important right affecting the public interest …”). Also, in litigation the Planning Department would be subject to discovery aimed at determining whether it is invoking Section 100 even-handedly to small remodels like ours (this issue is also the subject of a pending request under the California Public Records Act and I respectfully reserve the right to update the Council once the City has produced adequate records in response to our request).
1 The Director’s Determination

The Director largely bases his rejection of our plan on Section 18.70.100. 2 That section governs
reconstruction of a residential structure that already exceeds current zoning limits and is damaged or deliberately demolished, and it generally (and sensibly) requires that if that facility is “replac[ed]” or “reconstruct[ed] that such replacement or reconstruction not reinstate the noncompliance. The full text of that provision is appended below with relevant highlighting.

1 Indeed, if Section 100 applies to our small project the Planning Department would necessarily have to reject every single remodel of any noncomplying facility (action which would invite a cascade of litigation centered on unlawful taking of property). Judging by the number of projects that are ongoing in Barron Park every day of the week, not even the Planning Department is taking such a restrictive view of Section 100. Indeed, and to its credit, the Planning Department attempted to get some clarity around the meaning and scope of Section 100 back in 2015 but that effort did not gain traction with the members of the City Council at that time. See City Council Staff Report # 6333. We suspect that the Planning Department would benefit from and even appreciate this Council’s guidance on this important issue.

2 Until the Determination was issued on May 8, 2025, the Director entirely rested his rejection on Section 100. In the Determination, he attempts to buttress the rejection with a new claim that we do not satisfy Section 80. This late argument clearly suggests that the Director lacks confidence in his application of Section 100. In any event, the Director’s belated interpretation of Section 80 suffers from the same type of flaw that infects his analysis of Section 100, namely that he inserts terms that are not found in the text of the Code (see infra at 5).

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3 We are clearly not “replacing” or “reconstructing” the Unsafe Permitted Loft Area. We are demolishing it altogether and not replacing or reconstructing it. The Director would of course be correct if we were altering the Unsafe Permitted Loft Area and keeping it as loft space. But that is not our plan.

Since we are not replacing or reconstructing the Unsafe Permitted Loft Area, Section 100 is inapplicable because it only governs replacing or reconstructing space (see highlighting below).

The Director elides this unmistakable fact by arguing in the Determination that what we are doing is “relocating” non-complying floor area and that somehow triggers Section 100. We in fact do not agree that we are “relocating” square footage. Instead, and consistent with § 18.70.080, we are “enlarging” or “improving” a facility in a manner that does not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.”

However, even if the Director were correct in characterizing our project as “relocating” square footage, even then he would be incorrect in claiming that such “relocating” triggers Section 100. This is for the simple and unmistakable reason that Section 100 applies to replacing or reconstructing a portion of a noncomplying facility and we are not replacing or reconstructing the Unsafe Permitted Loft Area. The ordinary dictionary definition of replace is “to restore to a former place or position.” See https://www.merriam-webster.com/dictionary/replace . The
ordinary dictionary definition of “reconstruct” is “to build or assemble (something) again.” See https://www.merriam-webster.com/dictionary/reconstruct. Our project does not restore the Unsafe Permitted Loft Area nor does it assemble it again. As such, Section 100 is wholly inapplicable and the Director has invoked it erroneously.

Essentially, and improperly, the Director attempts to graft the additional terms bolded in red below to the following portion of Section 100:

When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion, [or relocation thereof,] shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title.

But the term “relocation” appears nowhere in the text of Section 100. It is clearly improper for the Director to insert new terms and limitations in existing Code. If the City wishes to revise the Code it is of course free to do so after complying with State and locale procedure for such modifications. Until then, the Planning Department is obligated to apply the Code as written. See CCP § 1858 (“In the construction of a statute or instrument, the office of the Judge is simply to ascertain and declare what is in terms or in substance contained therein, not to insert what has Item 12
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4 been omitted, or to omit what has been inserted; and where there are several provisions or particulars, such a construction is, if possible, to be adopted as will give effect to all.”).3

Our Project Is In Full Compliance with § 18.70.080

Fortunately, the Palo Alto Municipal Code has a provision that is specifically crafted to provide Palo Alto homeowners with much needed breathing room to update and modernize their homes.

Section 80 allows “enlargements” of facilities so long as they “do not increase the degree or manner of non-compliance.”

The flexibility offered by Section 80 is essential to the Code’s statutory scheme. Without it, the City would invite challenges under both the California and U.S. Constitutions (regulatory takings jurisprudence), as well as under the Housing Crisis Act of 2019 and the Housing Accountability Act, which limit a local agency’s ability to down zone or impose new standards midstream.

“Degree” in the context of Section 80 unquestionably speaks to quantity (the same 2,000 sq ft remains) and “manner” speaks to type of violation. Our proposed project keeps the existing Site Coverage and actually reduces FAR by 11 square feet.

Nonetheless, the Director asserts that “relocating” floor area changes the “manner” of non-compliance because the second floor excess becomes first floor excess. To begin, and as noted above, the Director’s assertion that we are “relocating” floor area is simply incorrect. More fundamentally, there is nothing in the Code that says the vertical placement of excess floor area is itself a violation.

The Director’s logic invents a brand-new metric—location—that appears nowhere in §§ 80, 90, or 100. Under the plain meaning rule, his attempt to graft new terms into existing code should be rejected. See Cnty. of Sacramento v. P. Gas & Elec. Co., 238 Cal. Rptr. 305, 311 (Cal. App. 3d Dist. 1987) (“Where the language is plain and admits of no more than one meaning, the duty of interpretation does not arise, and the rules which are to aid doubtful meanings need no discussion.”) (quotation omitted); see also Franklin v. Appel, 10 Cal. Rptr. 2d 759, 765 (Cal.

App. 2d Dist. 1992) (“The court will not, under the guise of construction, rewrite a law, and will not give the words an effect different from the plain and direct import of the terms used.”).

Thus, there is no question that our project comports with Section 80. Indeed, during the application process the Planning Department based its rejection of our plan solely on Section 100. It was only in the Determination that the Director first claimed that we do not satisfy

3 In his Determination, the Director cites in support of his interpretation the 2015 Council’s consideration of an amendment to a different provision of the Code, section 18.18.120. This provision of the Code is not at issue here and relates to commercial buildings in the Palo Alto Commercial District. (Determination at 3). The proceedings referenced by the Director related to a proposed amendment to the Code and not an interpretation of it. The fact that the Planning Department recognized in 2015 that it needed to amend the Code to apply to relocated space as to commercial buildings in the Commercial District underscores that the Department would need to do the same here to obtain the outcome the Director seeks.

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5 Section 80 as well (as noted above in footnote 2, the last-minute citation to Section 80 likely reflects the Director’s growing realization that Section 100 is not in fact applicable to our project).

Once again, the Director tries to graft terms into the Planning Code that are simply not there. The Determination claims that Section 80 “is intended to allow the improvement of a noncomplying facility in a manner unrelated to the particular degree or manner of noncompliance.” (Determination at 2, emphasis added). But the Code uses the term “affect” not “unrelated.” Our home does not affect the degree of noncompliance because it does not add to it in any respect.

Here as well the Director must apply the Code as written and not language that the Director apparently wishes it contained.
4 Conclusion

In sum, and viewing the provisions “holistically” (as the Director purports to do), Section 80 allows “enlargements” of noncomplying facilities provided they do not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.” § 18.70.080 (emphasis added). Section 100 applies when a property owner seeks to replace or reconstruct a non-complying facility or a portion of a non-complying facility. § 18.70.100 (emphasis added).

With respect to our project, we are proposing an addition that does not affect the degree of non- compliance of our project. We are removing the Unsafe Permitted Loft Area and not reconstructing it. As such, Section 80 applies and is satisfied and Section 100 has no application as a matter of law. It is therefore not within the Director’s discretion to deny the application nor is his legal interpretation of provisions of the Code entitled to any degree of deference by the Council (or, if need be, a court).

Relief Requested

The relief we seek is modest: the ability to improve safety and accessibility in our longtime home without being compelled to demolish legally built, character defining portions of the structure.

Timely intervention will spare everyone protracted appeals and public controversy, restore trust in the permitting system, and align City practice with the letter of its own ordinances.

4 California is of course in a housing crisis. It is therefore quite concerning to my wife and I and a number of other Palo Alto homeowners that the Director is so hostile to reasonable development efforts that he seems to create limitations on the right to develop property when none exist.

Indeed, the State of California has directed complaints to the Planning Department for precisely this reason. See
https://www.paloaltoonline.com/palo-alto/2025/04/03/state-orders-palo-alto-to- revise-laws-on-backyard-dwellings/. It is therefore no surprise that the Planning Department under the Director’s leadership receives abysmal reviews and remains the subject of much frustration in our community. See https://www.paloaltoonline.com/palo- alto/2024/12/10/residents-pan-permitting-laud-libraries-in-new-survey/.

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6 My wife and I respectfully request that the Council reverse the Director’s May 8 determination and find that our remodel complies with § 18.70.080 and that § 18.70.100 does not apply and direct staff to issue ministerial approvals forthwith.

We are available to answer any questions or provide supplemental material at the Council’s request.

Respectfully submitted,

/s/
Joseph and Colleen Petersen
Owners / Applicants
3886 Magnolia Drive, Palo Alto, California 94306
(917) 859 9680
[email protected]

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7 Appendix
Relevant Provisions of the Palo Alto Municipal Code

18.70.100 Noncomplying facility - Replacement.

A noncomplying facility which is damaged or destroyed by any means except ordinary wear and tear and depreciation may be reconstructed only as a complying facility, except as follows:
(a) When the damage or destruction of a noncomplying facility affects only a portion of the facility that did not constitute or contribute to the noncompliance, said portion may be repaired or reconstructed to its previous configuration.
(b) When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration.

In no event shall such replacement or construction create, cause, or increase any noncompliance with the requirements of this title.
(c) Notwithstanding subsections (a) and (b) hereof, a noncomplying facility in the commercial CS, CN and CC zones and the industrial MOR, ROLM, RP and GM districts, except for those areas designated as special study areas, existing on August 1, 1989, which when built was a complying facility, shall be permitted to be remodeled, improved or replaced in accordance with applicable site development regulations other than floor area ratio, provided that any such remodeling, improvement or replacement shall not result in increased floor area. (d) Notwithstanding subsections (a), (b) and (c) hereof, a noncomplying facility housing a conforming use in the R-1 and RE zones, which when built was a complying facility, which is damaged or destroyed by non-willful means (i.e., acts of God) shall be permitted to be replaced, on the same site, and in its previous configuration, without necessity to comply with the current site development regulations, provided that any such replacement shall not result in increased floor area, height, length or any other increase in the size of the facility. (e) Except as otherwise provided in this section with regard to replacement or reconstruction of a portion of a facility to its previous noncomplying condition, all reconstruction shall be subject to all applicable laws, regulations, and procedures otherwise governing construction on the site at the time said construction is undertaken.
(Ord. 5381 § 7, 2016: Ord. 4102 § 1 (part), 1992: Ord. 4016 § 46, 1991: Ord. 3905 § 18, 1989:

Ord. 3890 § 21, 1989: Ord. 3048 (part), 1978)

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8 (b) Except in areas designated as special study areas, the director of planning and development services may permit minor additions of floor area to noncomplying facilities in the commercial CC, CS and CN zones and in the industrial MOR, ROLM, RP and GM districts, subject to applicable site development regulations, for purposes of on-site employee amenities, resource conservation, or code compliance, upon the determination that such minor additions will not, of themselves, generate substantial additional employment. Such additions may include, but not be limited to, the following:
(1) Area designed and used solely for providing on-site services to employees of the facility, such as recreational facilities, credit unions, cafeterias and day care facilities; (2) Area designated for resource conservation, such as trash compactors, recycling and thermal storage facilities; and
(3) Area designed and required for hazardous materials storage facilities, handicapped access, and seismic upgrades.
(Ord. 5494 § 3, 2020: Ord. 5381 § 7, 2016: Ord. 5373 § 22 (part), 2016: Ord. 3890 § 20, 1989:

Ord. 3683 § 18, 1986: Ord. 3048 (part), 1978)

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Statement

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: June 16, 2025
Report #:2505-4702
TITLE
Approve and Authorize the City Manager or Designee to Execute Purchase Orders as Needed with the Okonite Company, Extending the Term for the Blanket Purchase Order for Purchase and Standardization of Underground Cable Through December 31, 2025, and to Increase the Not-to- Exceed Amount by $100,000, for the Extension Period. CEQA Status: Not a Project.

RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or designee to execute an extension of the existing Blanket Purchase Order and equipment standardization with the Okonite Company (Okonite) through December 31, 2025, along with increased funds for the six month extension not to exceed an additional $100,000.

EXECUTIVE SUMMARY
Staff recommends that the City Council approve extending the existing blanket purchase order authorization and equipment specification to purchase cables from Okonite, including both a six- month extension of time from the end of Fiscal Year 2025 to the end of the calendar year, December 31, 2025, and increasing funding by $100,000 for the extension period, allowing Utilities to continue purchasing medium voltage cables while staff prepares a new longer-term purchase order. This recommendation will provide City staff the ability to continue to purchase medium voltage cable necessary for the completion of the Foothills Wildfire mitigation project, initial portions of the Grid Modernization Project, and to support various new and redevelopment projects or any unanticipated emergency repairs.

BACKGROUND
The electric distribution system in Palo Alto is comprised of overhead and underground wires to provide power to residents and commercial customers. For the underground system, City of Palo Alto Utilities’ (CPAU) underground cable technical specification covers the physical and electrical requirements for operation on the City’s medium voltage (4,000 and 12,000 Volts), 60 Hertz, 3- phase, and 3 or 4 wire systems. Cables used in CPAU operations must meet CPAU’s cable specifications and industry standards.

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The City’s underground cable specification ensures a high level of performance and reliability standard. Over the past 20 years, CPAU staff have installed Okonite underground cable without a cable failure. Any exceptions to the underground cable specification by any cable manufacturer must be reviewed and approved. Okonite is the only cable manufacturer that fully meets the City’s specification for both cable insulation and a manufacturing process that ensures quality and reliability. City Council has previously approved an equipment standardization with Okonite for medium voltage underground cable pursuant to Section 2.30.900 of the Palo Alto Municipal Code through the end of Fiscal Year 2025, and this report requests an extension of that standardization through the end of calendar year 2025.

ANALYSIS
Medium voltage cables are used in residential and commercial underground circuits for the distribution of power. Utilities underground electric system designs include four standard cable sizes that are regularly stocked; 1) 1100 kcmil, 25kV, 2) 750 kcmil, 15kV rated, 3) 600 kcmil, 25kV rated, and 4) 1/0 AWG, 25kV rated. Often, utilities must make unplanned repairs, so it is important to have standardized material and a supplier who has demonstrated the ability to ensure product quality, uniformity of manufacture, ready availability, timely delivery, and accommodation of City requirements that maintains staff familiarity with the product to support overall electric system reliability and resiliency.

Additionally, the City of Palo Alto’s Grid Modernization Project involves the replacement and upgrade of aging electric infrastructure to support future energy demands. As electric loads are projected to increase—driven by the growing adoption of electric vehicle charging and the community’s transition from gas to electric appliances—certain segments of the City’s underground electric cable require upgrades to increase ampacity and to accommodate the additional load. Other cable segments will be replaced due to reaching the end of useful service life, which is approximately 30 years. In 2023 and 2024, expenditures for underground cable work totaled approximately $537,911 and $448,619, respectively, higher than the anticipated amount of $350,000 annually, though within the original five-year budget approved by Council.

As the Grid Modernization Project shifts its focus from overhead to underground infrastructure, staff anticipate increased underground construction activity and the need to purchase roughly 115,000 feet of underground cable annually over the next five years. Staff will return to Council with updated estimates for a new five-year contract but require this extension to complete critical undergrounding work in the Foothills over the summer of 2025.

The extension of the blanket purchase order authority and specification with Okonite for medium voltage underground cable will provide the following:

1. Base Pricing
•Okonite has provided the City with a base price for the four types of cable through December 31, 2025, the extended purchase order term. •An adjustments to metal pricing may rise but cannot increase higher than the CPI-W index.
•If metal costs decrease the City will receive that pricing benefit.

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•New or adjusted tariffs will impact the price per foot of cable. Changes to Okonite’s material sourcing due to tariffs will be applied, up or down, and passed through to the City. To date, Okonite has absorbed cost increases due to new tariffs by limiting price increases to 1%. Future invoices during the extension term will include a separately stated charge for any tariff- impacted components.

2. Repair, maintenance, and replacement costs will be minimized. •Okonite is a supplier to PG&E which enables Palo Alto to benefit from bulk pricing discounts achieved when using the same cable as PG&E. •Okonite cable meets the City’s specification for both cable insulation and manufacturing processes that ensures quality and reliability.

3. Supplies and spare parts are minimized.
•As the City uses some of the same cable as PG&E, Okonite keeps stock on hand and can meet the City’s short delivery requirements. Okonite maintains a minimum stock of the cables used by the City for emergency requests.
•Okonite offers the City the ability to order reels cut to length for specific projects to help manage inventory and reduce waste.
•Okonite’s factory (Santa Maria, CA) is located relatively close to Palo Alto and can expedite delivery of cable if needed for emergencies.

4. Standardizing existing equipment facilitates efficient construction and maintenance practices by helping City employees to more effectively plan, design, identify, and work with existing utility infrastructure. • Engineers and field workers are familiar with and can easily identify and work with Okonite cables because of the existing prevalence of these cables in the City’s system.
• By using a standard product Utilities staff can implement a consistent maintenance and replacement program.

For the past 20 years, Okonite has consistently been the lowest responsive bidder and awarded the purchase order to supply medium voltage underground cable as needed to the City. In 2020, the Council approved staff’s recommendation for a five-year standardization and authorization for a blanket purchase order for $350,000 each year. Cable shipments have never been missed and there have been no quality issues associated with Okonite’s cable. In addition, Okonite has provided excellent customer service to engineering and operations staff with training and support. Therefore, Staff requests an extension to the approved exception to the City's competitive solicitation requirements based on the approval of the equipment standardization, consistent with Section 2.30.360(e) of the Palo Alto Municipal Code.

Staff requests authorization to increase the not-to-exceed amount by $100,000 through December 31, 2025. Any unspent funds will be returned to reserves or the capital improvement Item 13
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project as part of the year end procurement process.

Timeline
The current purchase order with Okonite expires at the end of June 2025. The requested time extension will allow continued purchase of underground cables and increase the not-to-exceed amount by $100,000 for the remaining six months of 2025, allowing for wildfire mitigation work, initial phases of the Grid-Modernization project and support of development projects. If the time extension and increase amount are approved, staff will initiate an internal process to establish a longer, five-year purchase authority for City Council’s consideration at a later date.

FISCAL/RESOURCE IMPACT
Funding for this agreement is available from the FY 2026 Capital Budget in the Electric Fund Project EL-24000 (Grid Modernization) and EL-98003 (Electric System Improvements). The term agreement format means the City enters an agreement for an unspecified number of units, up to a maximum expenditure amount per year (PAMC 2.30.110) and items are ordered as needed, based on standard prices provided by the vendor.

The City’s purchase order template permits the City to terminate without cause or for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include amending the purchase order to reduce the cost, for example, by reducing the quantity of items purchased.

STAKEHOLDER ENGAGEMENT
This agreement for purchase of materials does not directly impact customers to require community outreach.

ENVIRONMENTAL REVIEW
Council’s extension of time, funding, and specifications for the purchase of cables from Okonite does not meet the definition of a project pursuant to section 21065 of the California Public Resources Code and is otherwise categorically exempt from California Environmental Quality Act (CEQA), under section 15301 (repair or maintenance of existing facilities), and section 15302 (replacement or reconstruction of existing structures and facilities) of California Code of Regulations Title 14 (the “CEQA Guidelines”).

ATTACHMENTS
None.

APPROVED BY:

Alan Kurotori, Director of Utilities
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: June 16, 2025
Report #:2505-4651
TITLE
Approval of Construction Contract No. C25194279 with Estate Design and Construction, Inc. in the Amount Not-to-Exceed $283,770 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $28,377 for the University Underpass Refurbishment Project; Capital Improvement Program University Avenue Parking Improvements (PF-14003) and Street Lights Improvements (PO-05054) projects; CEQA Status – Exempt under CEQA Guidelines Section 15301(c)

RECOMMENDATION
Staff recommends that the City Council:

1. Approve and authorize the City Manager or their designee to execute construction contract No. C25194279 with Estate Design and Construction, Inc. in the Amount of $283,770 for the University Underpass Refurbishment Project; Capital Improvement Program University Avenue Parking Improvements (PF-14003) and Street Lights Improvements (PO-05054) projects; and

2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Estate Design and Construction, Inc. for related, additional but unforeseen work that may develop during the project, the total value of which shall not exceed $28,377.

BACKGROUND
The University Underpass tunnel has been identified as needing refurbishment through field studies, surveys, and community feedback. The tunnel paint is peeling and tarnished, and the lighting is broken, malfunctioning, and inadequate. These create an unappealing aesthetic, dangerous conditions, and an overall undesirable path of travel for pedestrians. Tunnel paint was refurbished nearly a decade ago, but the lighting issues were not addressed at that time.

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ANALYSIS
Project Description
Staff recommends approval of Contract No. C251942791 for the University Underpass refurbishment to meet the needs of all residents and visitors that use the tunnel. This project will carry out necessary maintenance and rehabilitation work to bring the lighting system in the tunnel up to modern standards. The $283,770 expenditure for this contract will be used to demolish the existing lighting system and install new conduit, wiring, and fixtures throughout the tunnels. It will also repaint the interior tunnels including the four ramps that lead up to the train platform. The scope of work includes the installation of 800 linear feet of new conduit and 54 new fixtures, and 18,000 square feet of painting area.

Bid Process
On April 17, 2025, a formal invitation for bids (IFB) for the University Underpass Refurbishment project was posted on the City’s eProcurement system. The City received one (1) bid from qualified contractors on May 8, 2025, as listed on the attached Bid Summary (Attachment A).

Summary of Bid Process
Table 1: Summary of invitation for Bids
Project Bid Name/Number University Underpass Refurbishment IFB #194279 Proposed Length of Project 60 Calendar Days
Number of Bid Packages Downloaded by
Contractors
16 Number of Bid Packages Downloaded by Builder’s
Exchanges
1 Total Days to Respond to Bid 21
Mandatory Pre-Bid Meeting No
Number of Bids Received 1
Base Bid Price Range $283,770
Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto- ca/projects/159351
The bid was $283,770, which is 5% below the engineer’s estimate of $300,000. Staff has reviewed the bid submitted and recommends acceptance of the base bid submitted by Estate Design and Construction, Inc. in the amount of $283,770, and that Estate Design and Construction, Inc. be declared the lowest responsible bidder. The construction contingency amount of $28,377, which equals approximately 10% of the contract value, is requested for related, additional, but unforeseen work which may develop during the project, implemented via City-approved Change Order.

Staff reviewed information and similar projects performed by the lowest bidder, Estate Design 1 Estate Design and Construction, Inc., University Underpass Refurbishment Project, Contract #C25194279; https://www.paloalto.gov/files/assets/public/v/1/public-works/engineering-services/cip-contracts/c25194279- estate-design_cc_6.16.2025_staff-report_rev2.pdf
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and Construction Inc. and found them to be the lowest responsive and responsible bidder. Staff also checked with the Contractor's State License Board and confirmed the contractor has an active license on file.

FISCAL/RESOURCE IMPACT
Funding for this contract is available in the Fiscal Year 2025 Adopted Capital Improvement Program University Avenue Parking Improvements (PF-14003) and Street Lights Improvements (PO-05054) projects.

Table 2: Funding Allocation
Funding Source Contract Contingency Total Funding
PF-14003 $100,000 $10,000 $110,000
PO-05054 $183,770 $18,377 $202,147
Total $283,770 $28,377 $312,147

STAKEHOLDER ENGAGEMENT
The tunnel work has been coordinated with the City’s Utilities Department and staff will work closely with CalTrain/Joint Powers Board to minimize impacts to commuters. Extensive public outreach will be conducted before and during the construction phase to keep the community informed throughout the process.

ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301c of the CEQA Guidelines as repair, maintenance and/or minor alteration of the existing facilities and no further environmental review is necessary.

ATTACHMENTS
Attachment A: Bid Summary
APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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University Underpass Refurbishment Project

BID SUMMARY

ENGINEERS ESTIMATE ESTATE DESIGN AND CONSTRUCTIONBID ITEM 001

DESCRIPTION QUANTITY
1 UNIT
LS

UNIT COST TOTAL UNIT COST TOTAL
Base bid for the completion of all electrical fixture work as described in the project drawing’s and specs including, but not limited to, demolition, removal, reinstallation and testing of the system.
$98,657.00 $98,657.00 $99,300.00 $99,300.00
Base bid for the complete repainting of the interior of the University Tunnel system as described in the project
drawings and specs including, but not limited to, surface preparation, priming, painting, and cleaning.
002 1 LS $201,343.00 $201,343.00 $184,470.00 $184,470.00 TOTAL $300,000.00 $283,770.00

5.4%
UNDER
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: June 16, 2025
Report #:2505-4653
TITLE
Approval of Change Order No. 3 to Contract C22183580 with MP Nexlevel of California, Inc., to reallocate funding from Change Order No. 2 to the Fiber-to-the-Premises (FTTP) Project and to incorporate FTTP into the Scope of Work extending through August 31, 2025; CEQA Status - For FTTP, Council action on this item is within the scope of the Final Initial Study and Mitigated Negative Declaration (IS/MND) for the Fiber-to-the-Premises Project, adopted on June 17, 2024; otherwise exempt.

RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or their designee to execute Change Order No. 3 to contract C22183580 with MP Nexlevel (Attachment A) to reallocate funding from Change Order No. 2 the Fiber-to-the-Premises project from Change Order No. 1 and extending the FTTP scope of work through August 31, 2025 in line with Change Order No. 2, with no further change in the overall not-to-exceed amount or term of the contract.

BACKGROUND
The City of Palo Alto Utilities (CPAU) contracts substructure and trenching construction services because the amount of work varies year over year and use of contracted services allows for the most efficient and cost-effective use of resources for this variable timing. In 2022, MP Nexlevel was deemed the lowest responsible bidder of a competitive solicitation for utility trench and substructure installation (Staff Report 139531). The performance and quality of work delivered by MP Nexlevel has been satisfactory over the years. As part of the task order completion process, MP Nexlevel’s work is inspected and signed off by internal staff. The original Task Order Construction Contract C22183580 with MP Nexlevel of California, Inc., was approved by Council March 21, 2022 in the amount of $8,815,809 for Trenching and Substructure 1 City Council, March 21, 2022: Staff Report #13953
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Installation and Materials and a contingency amount of $881,581, for a total not-to-exceed amount of $9,697,390 over three years through April 30, 2025. For customer-related work, trenching and substructure work are reimbursed by the customers through the customer connection charges. Since FY 2023, the City has been reimbursed $4.5 million from customers for new service connections.

On October 7, 2024, Council approved Change Order #1 adding $1,650,000 inclusive of $150,000 in contingency funding for the installation of fiber optic cable and fiber hut site preparation in support of the fiber-to-the-premises (FTTP) pilot project (Staff Report #2408- 33682). Under Change Order #1, MP Nexlevel would install, lash, splice and test approximately 59,500 feet of fiber optic cable; build underground laterals and pad mounts for fiber distribution cabinets; and build a concrete pad to support the fiber hut and emergency generator including electric wiring, lighting, HVAC and security fencing. The FTTP pilot is expected to inform the City of the best mix of insource (internal staff) and outsource (contractors) staffing to construct and operate the new municipal Palo Alto fiber internet business. Change Order #1 covered the FTTP Phase 1 pilot area only. Once the pilot area is complete and can inform the requirements for a competitive solicitation, staff will be requesting competitive bids for construction of the remainder of the FTTP Phase 1 scope.

On April 14, 2025, Council approved Change Order #2 in the amount of $4,000,000 for a total not-to-exceed amount of $15,347,390, and extending the initial three-year term of the contract for an additional four months through August 31, 2025 to provide ongoing substructure and utility trenching construction services for the following capital improvement projects (CIPs):

Foothills Rebuild Wildfire Mitigation (EL-21001), Grid Modernization for Electrification Projects (EL-24000) and Electric Customer Connections (EL-89028) (Staff Report #2502-41863). The second Change Order was intended to bridge the gap between the existing contract and any new task-order substructure construction contract following the new competitive solicitation.

Due to updated construction estimates for work previously included in Change Order 1 and the additional funding already including in Change Order 2, staff is recommending approval of Change Order 3 to reallocate a portion of the funding approved for Change Order 2 to the FTTP project scope of work and to extend that scope through August 31, 2025.

ANALYSIS
Under Change Order No. 1, Staff estimated $1,650,000 for FTTP construction and preparation of the fiber hut site at Colorado Power Station. Staff redesigned the network architecture for the pilot to reduce the amount of splicing required which resulted in a reduction of 2 City Council, October 7, 2024: Staff Report #2408-3368 https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=1136b122-5ea9-447e-8a85-48c161ef99d4 3 City Council, April 14, 2025: Staff Report #2502-4186 https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=de72efcd-fb3c-44b1-84ba-0717af707692 Item 15
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approximately $330,000 in construction labor. CPAU hired a civil engineering firm to perform geotechnical investigation and foundation engineering design for the fiber hut at Colorado Power Station. The proposed fiber hut is expected to be approximately 11.5 feet by 20 feet and approximately 10.5 feet in height. The structure is expected to have a dead weight of 55,000 pounds, which applied over the area of the structure yields a pressure of about 240 pounds per square foot. Due to geotechnical concerns of shallow groundwater and potential severe ground shaking during a major earthquake, the engineering firm recommended a structural slab supported on a drilled pier which extends to about 18 feet and grade beam foundation system extending below the fill and the upper liquefiable layer. The construction quote for the fiber hut site preparation and installation came in approximately $750,000 higher than staff had originally estimated prior to completion of the geotechnical investigation and engineering design of the pad mount. The quote includes site grading and bedrock, conduit and vault installation, fiber hut pad and structural pier supports, and anchoring the fiber hut and generator upon delivery.

Under Change Order No. 2, Staff requested an additional $4,000,000 to provide substructure and utility trenching construction services for the Foothills Rebuild Wildfire Mitigation, Grid Modernization, and Customer Connections. Based on recent estimates of pending construction work, Staff has identified about $450,000 that can be reassigned to FTTP from Change Order No. 2 without impacting the other major projects.

The City issued a competitive solicitation in April 2025 for upcoming substructure and trenching construction services and anticipates awarding the contract in August 2025. Under the solicitation, staff is considering pre-qualifying more than one vendor to perform substructure work and utility trenching. This will provide the City flexibility and resources to work on multiple high priority projects concurrently.

FISCAL/RESOURCE IMPACT
There is no funding or staffing impact for Change Order No. 3. The purpose of the change order is to allocate additional funding for Fiber-to-the-Premises CIP (FO-24000), which was previously allocated in Change Order No. 1, and extend that scope of work in line with Change Order No. 2 through August 31, 2025.

STAKEHOLDER ENGAGEMENT
Staff continues to share updates with the Utilities Advisory Commission at their public meetings, and taken community input on various aspects of the staff’s work to date.

Additionally, a project website is live and offers information and status updates of FTTP.

Project updates will continue to be provided at www.PaloAlto.gov/PaloAltoFiber.

ENVIRONMENTAL REVIEW
The FTTP Project, including construction of the fiber hut, has been assessed in accordance with the authority and criteria contained in the California Environment Quality Act (CEQA), the State Item 15
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CEQA Guidelines, and the environmental regulations of the City. A final Initial Study-Mitigated Negative Declaration (IS/MND) that incorporated revisions, as appropriate, based on public comments was adopted by Council Resolution on June 17, 2024 (Staff Report #2403-27134).

Other portions of work performed by MPNexlevel, including the Foothills Rebuild and Grid Modernization Project are Exempt Under CEQA Guidelines Sections 15302, 15303 and 15183.

ATTACHMENTS
Attachment A: MP NexLevel, Contract C22183580 Change Order No. 3 APPROVED BY:

Alan Kurotori, Director of Utilities
4 City Council, June 17, 2024: Staff Report #2403-2713
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CONTRACT CHANGE ORDER

CITY OF PALO ALTO
DEPARTMENT: ELECTRIC UTILITIES OPERATIONS
_____________________________ Project

Contract Change Order # 3
Project Title: Fiber-to-the-Premises Project No.: FO-24000 Contract Number: C22183580 Date: 5/12/25
Contractor: MP Nexlevel of California, Inc. Change Order No.: 3

Description of Change Order
Background Information: The original contract C22183580 was approved by Council on March 21, 2022 under staff report ID 13953. The original term of the contract was an annual not-to-exceed amount of $9,697,390 for a total three-year not-to-exceed amount from June 15, 2022 through April 30, 2025. Staff Report 13953 (laserfiche.com)

Change order #1 was approved by Council on October 7, 2024 under staff report ID 2408-3368. $1,650,000 was added to the MP Nexlevel (MPNL) contract to perform substructure work for the new fiber hut and fiber construction for the fiber-to-the-premises (FTTP) pilot. With the FTTP amendment, the revised not-to-exceed amount is $11,347,390. (Staff Report 2408-3368)

Change order #2 was approved by Council on April 14, 2025 under staff report ID 2502-4186. $4,000,000 was added to perform substructure and trending work for Foothills Rebuild Wildfire Mitigation, Grid Modernization, and Customer Connections. (Staff Report #2502-4186).

Change Order Justification: Staff recommends amending the scope of work under change order #2 to include Fiber-to-the- Premises with no change to the total not-to-exceed amount of $15,347,390 and term of the contract through August 31, 2025.

Under Amendment No. 2, Staff requested an additional $4,000,000 to provide substructure and utility trenching construction services for the Foothills Rebuild Wildfire Mitigation, Grid Modernization, and Customer Connections. Based on recent estimates of pending construction work, Staff has identified about $450,000 that can be reassigned to FTTP from Amendment No. 2 without impacting the other major projects.

Due to geotechnical concerns of shallow groundwater and severe ground shaking during a major earthquake, the engineering consultant recommended a structural slab supported on a drilled pier which extends to about 18 feet and grade beam foundation system extending below the fill and the upper liquefiable layer. The construction quote for the fiber hut site preparation and installation came in approximately $750,000 higher than staff had originally estimated prior to completion of the geotechnical investigation and engineering design of the pad mount. The quote includes site grading and bedrock, conduit and vault installation, fiber hut pad and structural pier supports, and anchoring the fiber hut and generator upon delivery.

Description of Work to be Performed:

Of the rem aining $4.8M on the contract , c ontractor will provide estimated substructure construction work for the following CIP projects:
 Foothills Undergrounding (EL-21001) ~ $2.3M
 Grid Modernization (EL-24000) ~$0.1M
 Customer Connections (EL-89038) ~0.3M
 Fiber-to-the-Premises (FO-24000) ~2.1M

Incorporates Field Order Number(s): N/A
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NexLevel, Contract
C22183580 Change Order
No. 3

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Cost Time
This Change Order will:

 No cost change: N/A

 Increase cost by $ N/A

 Decrease cost by $ N/A

This Change Order will:

 Increase time by __0__ days
o _0_ days Excusable Delay
o _0_ days Compensable Delay

 Decrease time by ____ days

The date of completion as of this Change Order is:

August 31, 2025_______________________________

G/L account number (s): 40030200 / 31650
Basis for change in cost:

 Unit price(s)

 Lump sum

X Time and Materials

 Compensation for Compensable Delay

 Other:

Docusign Envelope ID: 4AAA8EA8-2192-465D-A0C9-7370CD6AA9B5 Item 15
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NexLevel, Contract
C22183580 Change Order
No. 3

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Contract Change Order – continued
CONTRACTOR CERTIFICATION: By signing below, Contractor agrees that this Change Order constitutes full resolution, settlement, accord and satisfaction with respect to any and all pending or future Claims for cost and extensions of time that were asserted, or that could have been asserted, in connection with the Work covered by this Change Order, as more fully set forth in Article 7 of the Contract General Conditions.

FAILURE TO EXECUTE: If Contractor fails to promptly execute this Change Order after it has been submitted for Co ntractor’s signature, the City may unilaterally approve this Change Order as set forth in Article 7 of the Contract General Conditions. Contractor may dispu te the terms of a unilaterally-approved Change Order, in whole or in part, by submitting a Claim in accordance with the Dispute Resolution Procedures set forth herein within fourteen (14) days after the Change Order is approved by the City. If Contractor fails to submit a Claim withi n that 14-day period, with respect to all or part of the unilaterally-approved Change Order, those portions of the Change Order which have not been disputed by timely submission of a Claim shall be deemed to have the same effect as if the Change Order was fully executed by both parties as set forth above.

Accepted for Contractor: Accepted for City of Palo Alto:

By: By:

Title: Title:

Date: Date:

PCO No.

ASI
FO
COR
CO
Description Amount Reason for Change
Adding Fiber-to-the-Premises to Change Order #2

Scope of Work
Docusign Envelope ID: 4AAA8EA8-2192-465D-A0C9-7370CD6AA9B5 5/13/2025
President
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Attachment A - MP
NexLevel, Contract
C22183580 Change Order
No. 3

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Document Preparation
By: Dave Yuan
Title: Utilities Strategic Business Manager
Date: May 12, 2025

City Approval – Division Head
Signature required on all Change Orders
By :

Title : Darren Numoto
Interim Assistant Director, Fiber
Date:

City Approval – Department Head
Signature required when any individual Change Order exceeds $10,000.

By:

Title: Kiely Nose
Interim Director of Utilities
Date:

Contract Change Order – continued
Summary of Amounts Payable Under Contract (For Internal Purposes Only) Original Contract Sum: $ 9,697,390.00
Previous Change Orders $ 1,650,000.00
This Change Order $ 4,000,000.00
Revised Contract Sum: $ 15,347,390.00
Compare to:

Original Contract
Authorization: $ 8,815,809.00 Contingency: 881,581.00
Contract Amendment
Authorizations $ 5,500,000.00 Contingency added: 150,000.00 Contingency Authorizations: $ 1,031,581.00 Used to date (0.00) Total Authorized Funding: $ 15,347,390.00 Balance remaining 4,795,577 Change Orders shall not be initiated for Council-approved contracts if the revised Contract Sum exceeds the total authorized funding amount.

Docusign Envelope ID: 4AAA8EA8-2192-465D-A0C9-7370CD6AA9B5 Item 15
Attachment A - MP
NexLevel, Contract
C22183580 Change Order
No. 3

Item 15: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: June 16, 2025
Report #:2504-4576
TITLE
Approval of Two Professional Services Contracts for a Term of Two Years: C25193536 with 4Leaf, Inc. in an Amount Not-to-Exceed $291,253 and C25194267 with Interface Engineering, Inc. in an Amount Not-to-Exceed $101,585 for Fire Station 4 Replacement Capital Improvement Program Project (PE-18004); CEQA Status - Exempt under CEQA Guidelines Sections 15302 and 15303

RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their designee to execute the following contracts for the Fire Station 4 Replacement project (PE- 18004):

1. Professional Services Contract No. C25193536 with 4Leaf, Inc. to provide inspection services for a term of 2 years and a total amount not-to-exceed $291,253, including $264,775 for basic services and $26,478 for additional services; and

2. Professional Services Contract No. C25194267 with Interface Engineering, Inc., to provide commissioning services for a term of 2 years and a total amount not-to-exceed $101,585, including $92,350 for basic services and $9,235 for additional services.

EXECUTIVE SUMMARY
The Fire Station 4 Replacement project is one of the key projects identified in the 2014 Council Infrastructure Plan. The new facility will replace the outdated 1954 station at 3600 Middlefield Road and is designed to meet modern essential services standards, support future operational needs, and align with the City’s Sustainability and Climate Action Plan (S/CAP). To support the upcoming construction phase, staff recommends approval of two professional services contracts for inspection services with 4Leaf, Inc. and commissioning services with Interface Engineering, Inc. These contracts provide necessary oversight, technical support, and compliance services to ensure successful project delivery. Construction is anticipated to begin in Fall 2025 and to be completed by Spring 2027.

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BACKGROUND
The Fire Station 4 Replacement Project is one of ten key projects identified in the 2014 Council Infrastructure Plan. The existing fire station, located at 3600 Middlefield Road, is an approximately 4,100 SF facility built in 1954. It no longer meets the operational needs of the Fire Department and does not make effective use of the current 0.6-acre site. The replacement facility is designed to meet modern essential services standards and support both current and future Fire Department requirements.

In May 2022, Council authorized a contract with Brown Reynolds Watford Architects (BRW Architects) to provide design and construction administration services for the replacement project.1 BRW Architects has completed the design and is currently in the process of obtaining the building permit. Concurrently, Staff is working to procure the remaining consultants and contractors in preparation for the start of construction.

As part of the City’s permitting requirements, third-party consultants, including a commissioning agent, must be hired to review and approve construction documents. During construction, the commissioning agent will ensure all building systems are fully operational and meet the City’s performance standards. Additionally, a commissioning agent is required for the project to achieve LEED certification.

To support efficient oversight during construction, the City will also contract for a part-time Inspector-of-Record dedicated to the project. This role will help ensure timely inspections and provide a consistent on-site resource.

In December 2024, the City expanded the project scope to include Level 3 electric vehicle charger infrastructure. This update aligns with the City’s Sustainability and Climate Action Plan (S/CAP) “80×30” goal—an initiative to reduce greenhouse gas emissions by 80% by the year 2030. The addition of EV charging stations prepares the facility for future electric fire and emergency vehicles, including an electric ambulance and fire engine. BRW Architects submitted revised plans for permitting in March 2025. Permit approval is anticipated in June 2025, with construction expected to begin in September 2025 and completion expected by Spring 2027.

ANALYSIS
Building Inspector-Of-Record Solicitation
A formal request for proposals (RFP) for the project was posted on OpenGov, the City’s eProcurement platform, and 3,425 vendors were notified. The solicitation period was posted for 19 days and 3 proposals were received. The solicitation closed on January 27, 2025. 1 City Council, May 23, 2022; SR #11691
https://portal.laserfiche.com/Portal/DocView.aspx?id=59470&repo=r-704298fc&searchid=51ff72b6-6bc6-4a2c- b70b-34b8ad06e0b7
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Table #1: Summary of Request for Proposal
Proposal Description Inspector of Record for Fire Station 4 Replacement Project RFP 193536
Proposed Length of Project 18 months
Number of Vendors Notified 3,425
Number of Proposal Packages Downloaded
by Contractors
9 Total Days to Respond to Proposal 19 days
Pre-Proposal Meeting No
Pre-Proposal Meeting Date N/A
Number of Proposals Received 3
Proposal Price Range $210,800 to $293,675
Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto- ca/projects/138463
The proposals were evaluated, and the three proposals received were determined to be responsive to the criteria identified in the RFP. Finalists were identified, and 4Leaf, Inc. was selected because of the quality and effectiveness of their services, their extensive inspection services provided in Palo Alto, and their prior record of performance with the City. Staff recommends approval of Contract No. C25193536 (Attachment A), with 4Leaf, Inc.

Commissioning Agent Solicitation
A formal request for proposals (RFP) for the project was posted on OpenGov, the City’s eProcurement platform, and 3,520 vendors were notified. The solicitation period was posted for 25 days and 5 proposals were received. The solicitation closed on May 5, 2025.

Table #2: Summary of Request for Proposal
Proposal Description Commissioning Services for Fire Station 4 Project RFP 194267
Proposed Length of Project 2 years
Number of Vendors Notified 3,520
Number of Proposal Packages Downloaded by
Contractors
22 Total Days to Respond to Proposal 25 days
Pre-Proposal Meeting No
Pre-Proposal Meeting Date N/A
Number of Proposals Received 5
Proposal Price Range $41,250 to $121,525.75
Public Link to Solicitation https://procurement.opengov.com/portal/palo- alto-ca/projects/161962
The proposals were evaluated, and the five proposals received were determined to be responsive to the criteria identified in the RFP. Finalists were identified, and Interface Item 16
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Engineering, Inc. was selected because of their proposed approach to completing the scope, commissioning experience with projects similar to Fire Station 4 and other essential services buildings, and proximity to the project site. Staff recommends approval of Contract No.

C25161962 (Attachment B), with Interface Engineering, Inc.

Staff is currently working on various contract amendments for the construction manager, project architect, and other design contract extensions through the end of the project. These contract amendments, along with the construction contract for the general contractor, will be brought to Council in August 2025.

FISCAL/RESOURCE IMPACT
Funding for the contracts included in this report is available in the Fiscal Year 2025 Adopted Capital Improvement Program Fire Station 4 Replacement project (PE-18004).

STAKEHOLDER ENGAGEMENT
The City hosted several events for community engagement during schematic design prior to Architectural Review Board approval of the proposed design. Events included a virtual community meeting on April 6, 2023, a tabling event at the MSC Open House on July 15, 2023, and an online survey. A community meeting was also held for the construction of the temporary station at Cubberley Community Center on April 11, 2024. An email newsletter is available for the public to sign up for updates throughout design and eventual monthly construction updates.

ENVIRONMENTAL REVIEW
Council action on this item is exempt from the California Environmental Quality Act (CEQA) review under section 15061(b)(2) of the CEQA Guidelines because the Fire Station No. 4 Replacement Project is categorically exempt under CEQA Guidelines Sections 15302 and 15303 and is not barred by one of the exceptions set forth in Section 15300.2. A notice of CEQA exemption was filed on October 26, 2023.

ATTACHMENTS
Attachment A: Contract with 4Leaf, Inc. C25193536
Attachment B: Contract with Interface Engineering, Inc. C25194267 APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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Professional Services
Rev. Oct 16,2024

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Palo Alto City CouncilJune 16, 2025

Palo Alto City Council
June 16, 2025