Palo Alto City Council
August 11, 2025

TABLE OF CONTENTS
ARTICLE I – PREAMBLE ................................................................................................................... 4 Section 1 – Recognition. .................................................................................................................... 4 Section 2 – Non-Discrimination. ........................................................................................................ 4 ARTICLE II – COMPENSATION ........................................................................................................ 4 Section 3 – Salary. .............................................................................................................................. 4 Section 4 – Working Out of Class Pay. .............................................................................................. 5 Section 5 – Night Shift Differential. .................................................................................................. 5 ARTICLE III – HEALTH CARE BENEFITS ....................................................................................... 5 Section 6 – Active Employee Health Plans. ....................................................................................... 5 Section 7 – Dental Benefits. ............................................................................................................... 7 Section 8 – Vision Care. .................................................................................................................... 7 Section 9 – Basic Life Insurance. ...................................................................................................... 7 Section 10 – Supplemental Life And AD&D Insurance. ................................................................... 7 Section 11 – Effective date of Coverage for New Employees. .......................................................... 7 ARTICLE IV – OTHER BENEFITS ..................................................................................................... 8 Section 12 – Holiday Compensation. ................................................................................................ 8 Section 13 – Vacation. ....................................................................................................................... 8 Section 14 – Long Term Disability. ................................................................................................... 9 Section 15 – Dependent Care Assistance Program. .......................................................................... 9 Section 16 – Medical Flexible Spending Program. ............................................................................ 9 Section 17 – Employee Assistance Plan. ............................................................................................ 9 Section 18 – Commute Incentives and Parking. ............................................................................... 10 Reopener. .......................................................................................................................................... 10 ARTICLE V –RETIREMENT ............................................................................................................. 10 Section 19 – Retirement Benefits. .................................................................................................... 10 Section 20 – Retirement Medical Plan. ........................................................................................... 11 Section 21 – ICMA - Retirement Health Savings Plan. .................................................................. 12 Section 22 – Deferred Compensation Program. .............................................................................. 12 ARTICLE VI – MANAGEMENT BENEFIT PROGRAM ................................................................. 12 Section 23 – Professional Development Reimbursement. ............................................................... 12 Section 24 – Physical Examinations. .............................................................................................. 13 Item 5
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July 1, 2025 – June 30, 2028

Section 25 – Excess Benefit. ............................................................................................................ 13 Section 26 – Management Annual Leave. ....................................................................................... 15 ARTICLE VII – OPERATIONAL ISSUES ....................................................................................... 15 Section 27 – Management Assignments. ......................................................................................... 15 Section 28 – Basic Work Schedules. ............................................................................................... 15 Section 29 – On Duty Workouts. ..................................................................................................... 15 Section 30 – Take Home Emergency Response Vehicles. ............................................................... 16 Section 31 – Modified Duty Assignments. ...................................................................................... 16 Section 32 – Meal Allowance. ........................................................................................................ 16 Section 33 – Uniforms. ..................................................................................................................... 16 ARTICLE VIII – ASSOCIATION AGREEMENTS ........................................................................... 17 Section 34 – Association Security. .................................................................................................. 17 Section 35 – Association Representative Access to Work Locations. ............................................. 17 Section 36 – Release Time. .............................................................................................................. 17 Section 37 – Use of City Facilities for Association Business. ......................................................... 17 Section 38 – Payroll Deduction. ....................................................................................................... 17 ARTICLE IX – LEAVE PROGRAMS ................................................................................................ 18 Section 39 – Sick Leave. .................................................................................................................. 18 Section 40 – Voluntary Catastrophic Leave Program. ..................................................................... 19 Section 41 – Leave of Absence With Pay. ...................................................................................... 19 Section 42 – Leave of Absence Without Pay. .................................................................................. 20 ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS .................................................................. 21 Section 43 – Probationary Period. .................................................................................................... 21 Section 44 – Disciplinary Action and Unsatisfactory Work or Conduct. ........................................ 22 Section 45 – Grievance Procedure. .................................................................................................. 22 Section 46 – No Strikes. ................................................................................................................... 24 Section 47 – Reduction in Workforce. ............................................................................................ 24 ARTICLE XI – LOOKING FORWARD ............................................................................................. 24 Section 48 – Full Understanding. ..................................................................................................... 24 Section 49 – Legal Compliance/Severability. .................................................................................. 24 Section 50 – Duration. ...................................................................................................................... 24 APPENDIX A-1 .................................................................................... Error! Bookmark not defined.

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July 1, 2025 – June 30, 2028

20 23 - 2025 MEMORANDUM OF AGREEMENT
City of Palo Alto and Palo Alto Police Managers' Association ARTICLE I – PREAMBLE
This Memorandum of Agreement is pursuant to and subject to Sections 3500-3510 of the Government Code of the State of California, the Charter of the City of Palo Alto, and the City of Palo Alto Merit System Rules and Regulations.

This Memorandum of Agreement made and entered into at Palo Alto, California, by and between the City of Palo Alto, a municipal corporation (hereinafter referred to as "City") and the Palo Alto Police Managers' Association (hereinafter referred to as "Association"), is intended to define agreements reached during the meet and confer process concerning wages, hours, working conditions, and other terms and conditions of employment for the represented group of employees.

Section 1 – Recognition. On October 29, 2009, the City of Palo Alto certified the Palo Alto Police Managers' Association (Association) as a bargaining unit within the City.

The City recognizes the Association as the exclusive representative of an employee group consisting solely of Police Lieutenants and Police Captains who are regularly employed by the City and others who might be amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations.

Section 2 – Non-Discrimination. The City and the Association agree that there shall be no discrimination of any kind because of age (over 40), race, creed, color, religion national origin, ancestry), veterans status, physical or mental disability, marital status, sexual orientation, sex (sexual, gender based or gender identity, pregnancy/childbirth), medical condition (cancer related and genetic characteristics), or on any other basis prohibited by applicable federal and State law against any employee or applicant for employment.

The Association shall cooperate with the City, to the extent required by federal and State laws and regulations, in furthering the objective of Equal Employment Opportunities, as defined by Federal and State regulations.

ARTICLE II – COMPENSATION
Section 3 – Salary
a) General Salary Increase: Effective the first full pay period including the adoption of the MOA, the salary ranges of all represented classifications will be increased by three percent (3%).
b) Market Adjustment: Effective the first full pay period following the adoption of the MOA, salary ranges of all bargaining unit classifications will be increased by one percent (1.0%).

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c) General Salary Increase: Effective the first full pay period following July 1, 2026, salary ranges of all represented classifications will be increased by three percent (3.0%). d) Market Adjustment: Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by one percent (1%). e) General Salary Increase: Effective the first full pay period following July 1, 2027, salary ranges of all represented classifications will be increased by three percent (3.0%). f) Market Adjustment: Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by one percent (1%). g) Flexible Compensation: Effective January 1, 2023, and in lieu of an increase to the City contribution towards medical premiums, each represented classification will have their monthly income increased by $100.
h) Flexible Compensation: Effective the first full pay period following January 1, 2024, and in lieu of an increase to the City contribution towards medical premiums, each represented classification will have their monthly income increased by an additional $100 (Total of $200).

Section 4 – Working Out of Class Pay. Lieutenants or Captains fulfilling the role of an acting captain, assistant chief, or chief for individual shifts and/or a number of hours within a shift, shall not receive additional compensation. Periodically working in this capacity shall be deemed a basic duty within an employee's job description.

Lieutenants and Captains working out of class for a period of four or more consecutive shifts shall be compensated at the start of the pay period with premium pay determined by the Chief of Police or their designee up to 10% of base pay.

In accordance with Government Code 20480, an employee assigned to work in an out-of-class appointment may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence.

Section 5 – Night Shift Differential. Night shift differential shall be paid at the rate of 5% to all personnel for all hours worked between 6:00 p.m. and 8:00 a.m.

ARTICLE III – HEALTH CARE BENEFITS
Section 6 – Active Employee Health Plans. The maximum City contribution towards medical premiums for eligible full-time employees per employee category shall the following for any plan:

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July 1, 2025 – June 30, 2028

Medical Premium
Category
PEMHCA
Contribution*
Total Maximum City
Contribution (inclusive
of PEMHCA
contribution) effective
the first full pay period
including Council
Adoption
Employee Only $151.00 $943
Employee plus one $151.00 $1,885
Employee Family $151.00 $2,444
E
ffective 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
PEMHCA
Contribution*
Total Maximum City
Contribution (inclusive
of PEMHCA
contribution) effective
January 1, 2027.

Employee Only $151.00 $962
Employee plus one $151.00 $1,942
Employee Family $151.00 $2,566
E
ffective January 1, 2028, the City will increase its maximum contribution to medical premiums by 4%.

Medical Premium
Category
PEMHCA
Contribution*
Total Maximum City
Contribution (inclusive
of PEMHCA
contribution) effective
January 1, 2028.

Employee Only $151.00 $1,000
Employee plus one $151.00 $2,020
Employee Family $151.00 $2,669
*Total City contribution includes both PEMHCA minimum contributions pursuant to Government Code section 22892 and an additional City contribution necessary to pay the cost of medical premiums up to the amount listed in the "Total maximum City contribution" columns above.

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Section 7 – Dental Benefits.

a) The City will maintain the present level of benefits on the City-sponsored dental program for current employees and their dependents, except that the maximum benefits per calendar year shall be $2,000 effective in 1988. Dental Coverage shall include composite (tooth colored) fillings for all teeth.

Effective July 1, 2007, the City will provide 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. b) Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below.

c) During the term of the agreement, the City and the Union will work together to review benefit provisions of the City's self-funded dental program. The purpose of this review is to contain benefit cost increases. Joint recommendations will be prepared for discussion during successor agreement negotiations.

d) Dental implants in conjunction with one or more missing natural teeth, and removal of dental implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR).

Section 8 – Vision Care. The City will offer vision care coverage for employees and dependents.

Coverage is equivalent to $20 deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below.

Section 9 – 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).

Section 10 – Supplemental Life And AD&D Insurance. An employee may, at their cost, purchase additional life insurance and additional AD&D coverage equal to one-or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000.

Section 11 – 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, and life insurance plans if these benefits are elected.

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ARTICLE IV – OTHER BENEFITS
Section 12 – Holiday Compensation. Police Managers will receive the twelve (12) paid City holidays outlined in the City of Palo Alto Merit Rules.

Floating Holiday – Days of Historical Significance. Employees will be provided one floating holiday each calendar year in acknowledgement of days of historical significance. The employee with prior approval from their supervisor can use this floating holiday at any time during the year. This holiday has no cash value and will expire if unused.

Section 13 – Vacation.
a) V
acation Accrual.

Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual.

Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status:

1. Less than nine (9) years - For employees completing less than nine (9) years continuous service; one hundred twenty (120) hours vacation leave per year. The City Manager may adjust the annual vacation accrual of employees hired on or after July 1, 2001 to provide up to forty (40) additional hours (i.e. to a maximum annual accrual of one hundred sixty (160) hours) for service with a prior employer.

2. N
ine (9), but less than fourteen (14) years - For employees completing nine (9), but not more than fourteen (14) years continuous service; one hundred sixty (160) hours vacation leave per year.

3. Fo
urteen (14), but less than nineteen (19) years - For employees completing fourteen (14), but not more than nineteen (19) years continuous service; one hundred eighty (180) hours vacation leave per year.

4. N
ineteen (19) or more years - For employees completing nineteen (19) or more years continuous service; two hundred (200) hours vacation leave per year. b) V
acation Use.

Vacation use by police managers will be subject to approval by the Chief of Police or their designee.

All reasonable efforts will be made to approve vacation requests while maintaining appropriate oversight of public safety operations.
c) Vacation Cashout.

Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours from a minimum of eight (8) hours to a maximum of one hundred (120) Item 5
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hours, provided that the employee has taken at least eighty (80) hours of vacation in the previous twelve (12) months.

Effective for the 2012 tax year and each subsequent year, employees must pre-elect an irrevocable number of vacation hours they will cash out during the upcoming year, up to a maximum of one hundred twenty (120) hours, prior to the start of the calendar year. Employees who do not pre- designate or elect to cash out hours will be deemed to have waived the right to cash out any vacation leave in the following year.

Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to payroll. For employees who have not requested payment of pre-designated cash out amounts by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after November 1. d) Vacation Pay at Termination.

Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Payments for accrued vacation shall be at the employee's current rate of pay.
e) Vacation Benefits for Deceased Employees.

An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to the employee's estate within thirty days. This proration will be computed at the last basic rate of pay.

Section 14 – Long Term Disability. 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.

Section 15 – Dependent Care Assistance Program. The City will provide a Dependent Care Assistance Program for employees according to the provisions of the Federal Economic Recovery Act of 1981, Code Sections 125 and 129. The program will be available to representation unit employees beginning with pay period number 1 of 1992, and remain in effect subject to a reasonable minimum participation level and availability of third-party administrative services at a reasonable cost.

Section 16 – Medical Flexible Spending Program. The City will provide a Medical Flexible Spending Program for Association members allowing them to use pre-tax deferrals for reimbursement of excess or uncovered medical, dental and vision expenses. The plan will follow existing plan guidelines and conform to all applicable laws and regulations.

Section 17 – Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc.

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Section 18 – 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 commute alternative on 60% or more of their scheduled work days per month:
a. Public Transit 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 Check 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.

Reopener. It is the City's interest to reduce single occupancy vehicle trips to the extent possible in order to address current challenges. During the term of this agreement, upon written request by the City, the parties shall meet and confer through the impasse process if necessary on changes to the City's commute incentive and parking program adopted by the City Council.

ARTICLE V –RETIREMENT
Section 19 – Retirement Benefits.

A. "3%@50" Safety Retirement (Employees hired on or before December 7, 2012) For employees hired by the City of Palo Alto on or before December 7, 2012, the California Public Employees' Retirement System (CalPERS) retirement formula benefit known as the "3 percent at 50 (3%@50)," per California Government Code section 21362.2, shall continue in effect with the final salary determination for such employees of the "single highest one (1) year period" per California Government Code section 20042. All unit members in the 3% @ 50 safety retirement plan shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law.

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B. Second Tier "3% at 55" Safety Retirement ("Classic" Employees) For those employees hired on or after December 8, 2012 through December 31, 2012 or are classic members as defined by CalPERS, the CalPERS retirement formula benefit known as the "3 percent at 55 (3%@55)," per Government Code section 21363.1, with the final salary determination for such employees of the "three (3) highest consecutive years" based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member per Government Code section 20037. All unit members in the second tier shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law.

C. Third Tier "2.7% at 57” Safety Retirement (“New” PEPRA Employees) For those employees hired on or after January 1, 2013, the CalPERS retirement formula benefit known as "2.7 percent at 57 (2.7% at 57)," with the final salary determination for such employees of the "three (3) highest consecutive years." The initial contribution rate will be at least 50% of the normal cost rate at retirement as determined by CalPERS. This contribution is pre-tax to the extent allowable by law.

D. Additional Employee PERS Contributions
Effective the pay period that includes June 30, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay 3% towards the Employer share of Pension.

Effective the pay period that includes June 30, 2021, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Such contributions under CalPERS 20516 will be provided on a pre-tax basis to the extent allowable by law.

Section 20 – Retirement Medical Plan.

A. Retiree Medical Coverage for Unit Employees Hired Before January 1, 2004:

Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees hired before January 1, 2004 as outlined below.

For employees who retire before June 1, 2012, the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to PMA employees among the existing array of plans.

For employees who retire on or after June 1, 2012, The City contribution towards retiree medical shall be the same contribution amount it makes for active City employees.

Effective upon ratification and adoption of this Agreement (Scheduled for January 11, 2016), the City shall provide active unit 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 Item 5
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department of their election in writing no later than 90 days following the ratification and adoption of this Agreement.

B. 20-Year Vesting Schedule for Retiree Medical Coverage for Unit Employees Hired on or After January 1, 2004 and employees who chose to opt-in to retiree health benefits provided under California Government Code section 22893 as outlined above:

The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January I, 2004 and employees who opt-in as outlined above. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents.

Section 21 – ICMA - Retirement Health Savings Plan. The City provides an ICMA retirement health savings plan for Association members. The ICMA retirement health savings plan is subject to applicable IRS rules and plan guidelines as well as any other applicable laws. Each Association member shall make a pre-tax contribution to the plan as follows:

1. Each member shall contribute 1% of their base salary bi-weekly into the plan.

2. Failure by each member to contribute will deem the health savings plan out of compliance with IRS and plan guidelines.

3. The administrative fee shall be paid by the Association member.

The manner and amount of contributions may be periodically modified by agreement of both parties.

Section 22 – Deferred Compensation Program. The City will provide a Deferred Compensation Program for employees according to the provisions of the plans and applicable IRS guidelines.

Effective July 1 2026, the City will contribute $250 monthly to the 457 plan of each represented employee.

Effective July 1 2027, the City will contribute a total of $400 monthly to the 457 plan of each represented employee.

ARTICLE VI – MANAGEMENT BENEFIT PROGRAM
Section 23 – Professional Development Reimbursement. 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 to each Association 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.

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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 will be at 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.

Section 24 – Physical Examinations. All management and professional employees are eligible to receive an annual physical examination as follows:
a) Use the periodic health exam benefit as provided under the PERS Health Plan option you have selected. Each of the PERS Health Plans provides for a periodic physical examination.

The examination must be performed by your primary care physician – unless they refer you to another physician.
b) The types of tests and the frequency of the tests cannot exceed AMA guidelines. The guidelines are a suggested minimum based on research studies concerning preventative care. The judgment of your physician is the final determinant for your care. c) Any additional necessary asymptomatic tests that are required by your physician that are not covered by your health plan will be reimbursed by the City. Any symptomatic tests will be covered under your PERS Health Plan.

The Reimbursement for Periodic Physical Exam Form is available on the Human Resources Intranet site. This benefit will not be pro-rated.

Section 25 – Excess Benefit. This benefit is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $3,000 annually that they can designate among the following options:
a) Medical Flexible Spending Account (Medical FSA).

Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as well as over-the-counter drugs, including: antacids, allergy medicines, pain relievers and cold medicines. However, nonprescription dietary supplements (e.g. vitamins, etc.) toiletries (e.g.

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toothpaste), cosmetics (e.g. face cream), and items used for cosmetic purposes (e.g. Rogaine) are not acceptable.
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 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.
1) The annual amount submitted for reimbursement cannot exceed the income of the lower-paid spouse.
2) 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.
3) The payments cannot be made to a child under 19 years of age or to a person claimed as a dependent.
4) 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 individuals (other than a resident of the facility).
5) 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.

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.

The $3,000 excess benefit provided in this section made on a one-time contribution basis on election by the employee towards the employee's City-sponsored 457 Deferred Compensation plan with either ICMA-RC or the Hartford.

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.

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July 1, 2025 – June 30, 2028

Specified amounts under this benefit will be applied on a pro-rata 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 employment (based on hire date) but will not be pro- rated upon separation of employment.

Section 26 – Management Annual Leave. At the beginning of each calendar year regular management employees will be credited with eighty (80) hours of management annual leave. This leave is granted in recognition of the extra hours management 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 shift off for each 8 hours charged. 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 fiscal 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 calendar year will be paid in cash unless a different option as indicated above is elected by the employee.

Section 27 - POST Certificate/Incentive
Management POST Certification: Employees that qualify for the Management POST certificate will receive a four percent (4%) increase to base pay effective the first full pay period after the employee provides proof of submission of the required paperwork to POST. Employees become eligible for Management POST certificate pay one (1) year after promotion or appointment to a represented classification.

ARTICLE VII – OPERATIONAL ISSUES
Section 28 – Management Assignments. The Chief of Police or their designee shall have the authority to make management assignments at their discretion. Where possible, these assignments should take into account the needs of the organization, development of the employee and individual employee desires.

Section 29 – Basic Work Schedules. Generally, police managers will be expected to work flexible schedules and reasonably adjust their hours to oversee their employee groups, manage 24/7 law enforcement operations, perform routine work, complete daily assignments, and occasionally attend meetings or other events outside their normal work shifts. Basic work schedules will be the 4/10 schedule.

Section 30 – On Duty Workouts. Police managers who complete the yearly Wellness Program requirements may participate in an on-duty workout for a reasonable period as determined by the Chief, as long as it does not interfere with the performance of the employee's job duties, for which the employee will remain accountable. Applicable guidelines and conditions are outlined in the Department's Wellness Program Policy which the City may change from time to time.

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Section 31 – Take Home Emergency Response Vehicles. Subject to approval by the City Manager and the Police Chief, Police Captains will continue the current take home emergency response vehicle program which allows for the immediate and emergent response to public safety incidents involving the City.

The specific use and restrictions for driving these vehicles shall adhere to the guidelines outlined in the then current version of City Policy and Procedure 4-01.

Section 32 – Modified Duty Assignments. In cases of non-work-related injury, illness or pregnancy, an employee, upon approval of the department head, City Risk Manager and the employee's doctor, may return to work or continue work with doctor-approved limited or alternative duty pursuant to Policy & Procedure 2-04. Approval for reasonable accommodation such as limited/alternative duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. The City doctor may be consulted in determining work limitations.

Any assignment to a limited/alternative duty will be on a temporary basis.

Section 33 – Meal Allowance. Police managers attending night meetings will be eligible for meal re- imbursement under the guidelines set forth in the then current version of City Policy and Procedure No. 1-02.

Section 34 – Uniforms.
a) The City will supply complete uniforms to all sworn personnel. All uniform items are the property of the City. One complete uniform consists of: (I) three pair of trousers, (2) three short-sleeved shirts with patches and zippers if desired, (3) three long-sleeved shirts with patches and zippers if desired, (4) three cotton or two synthetic fiber turtleneck shirts, (5) hat, (6) duty jacket with patches, (7) dress jacket with patches, (8) necktie, and (9) rain gear. b) At the time of initial employment, every sworn employee will be issued one complete uniform. Uniform items will be replaced on an as-needed basis subject to verification by management.
c) The City shall provide uniform cleaning for sworn representation unit personnel. d) Personnel are accountable for all uniform items issued to them. If a particular item is lost or damaged due to employee negligence, the employee will be required to reimburse the City for value of the item(s) lost or damaged.
e) The City shall reimburse employees for the full cost of job-related boots upon verification of such purchase by the employees. The City will make the reimbursement only upon proof that the previous boots have become unserviceable due to wear or damage. (Job-related boots shall mean well-constructed, high topped boots that provide full ankle and foot support, which are selected from list agreed to by Management and the Association.)

Employees are responsible for the full cost of any low-top, black shoes that are worn with the uniform.

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ARTICLE VIII – ASSOCIATION AGREEMENTS
Section 35 – Association Security.
a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Unit and give the employee a current copy of the Memorandum of Agreement. b) If there is no disruption of work, members of the Association Board of Directors may use a reasonable amount of on-duty time without loss of pay to meet with Management specifically related to representation of employees. Such release time must be cleared in advance by the Chief (or their Designee) who is a member of management.

For purposes of this section, representation shall include:
(i) Meetings with represented employees or management related to a grievance or disciplinary action, including investigation and preparation time. (ii) A meeting with management related to benefits, working conditions or other terms and conditions of employment.

Section 36 – Association Representative Access to Work Locations. Employee and non-employee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum of Understanding, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs. Advance arrangement shall normally include not less than one hour's notice in the case of an employee Association representative, two hours in the case of non- employee Association representatives. Non-employee representatives must also notify the Human Resources Department Manager (or designee) of the time, date and location of the representative's intended visit.

Section 37 – Release Time. The Association President or their designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary issues, and training for association members.

Release time shall normally be approved in advance by the department head and must not detract from the performance of the representative's City job duties, for which they will remain accountable.

Section 38 – Use of City Facilities for Association Business. Any use of City facilities shall be governed by the then current version of City Policy and Procedure No. 4-07.

Section 39 – Payroll Deduction. The City shall deduct Association membership dues and any other mutually agreed upon payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the City and the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction.

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July 1, 2025 – June 30, 2028

ARTICLE IX – LEAVE PROGRAMS
Section 40 – Sick Leave.
a) Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Subsection (i), personal business chargeable to sick leave. Sick leave may be used for illness in the immediate family (spouse, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee).

b) Eligibility.

Regular and part-time employees shall be eligible to accrue and use sick leave. c) Accrual.

Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent 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.
d) Accumulation.

Sick leave accrual accumulation shall be limited to 1,000 hours with no payoff provision for unused balance at termination.
e) Use.

Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight hours or shift equivalent of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination.

An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at their option, choose either to receive the long-term disability benefits or to utilize the remainder of their accrued sick leave prior to applying for long-term disability benefits.

Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence.

When an employee finds it necessary to be absent for any reason, they should contact the Department as soon as possible, but no later than the start of the scheduled shift on the first working day of absence, and shall regularly report by the start of each subsequent shift unless hospitalized. Such reports may be subject to written documentation if there is reasonable evidence that sick leave abuse has occurred. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant.

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Documentation may also be required if there is a reasonable basis to believe that the employee may not be medically fit to return to work.
f) Depletion of Sick Leave Benefits.

Upon depletion of sick leave or the beginning of the period to be covered by payments under the long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, they must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. g) Forfeiture Upon Termination.

Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law. 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. h) Personal Business Leave Chargeable to Sick Leave.

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.

Section 41 – Voluntary Catastrophic Leave Program. If permitted by agreement between the City and the Palo Alto Police Officers' Association (P.O.A.) members of the Palo Alto Police Managers' Association representation unit may participate in the "Voluntary Leave Program" applicable to the P.O.A. representation unit to assist in maintaining the pay of an employee who is eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- P.O.A. agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law). Otherwise, said program shall be governed by the conditions and restrictions set forth in the City-P.O.A. Memorandum of Agreement.

Section 42 – Leave of Absence With Pay. The City Manager may grant a regular employee under their control a leave of absence with pay for a period not exceeding thirty calendar days for reasons they deem adequate and in the best interest of the City.

The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. a) Subpoenas: leave of absence.

Regular employees who are subpoenaed in their capacity as a City employee to appear as witnesses on behalf of the State of California or any of its agencies may be granted leaves of absence with pay from their assigned duties until released. The employee shall remit all fees received for such appearances to the City within thirty days from the termination of their service as a witness.

Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee.
b) Employee's time off to vote.

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July 1, 2025 – June 30, 2028

Pursuant to Elections Code section 14000, when the employee is unable to vote outside of the employee's work hours, up to two (2) hours' time off with pay to vote at any general or direct primary election shall be granted at the beginning or end of the employee's scheduled shift, whichever allows the most free time for voting and the least time off from the regular working shift.

Such time off with pay to vote shall only be granted if the employee provides at least two working days' notice that time off for voting is desired, unless the nature of the employee's schedule prevents the employee from anticipating the need for time off to vote. c) Leave of absence; death in family.

Leave of absence with pay of three (3) days may be granted to an employee by the head of their department in the event of death in the employee’s family. For purposes of this section, family is defined as:
wife
husband
son
son-in-law
daughter
daughter-in-law
father
mother
brother
brother-in-law
sister
sister-in-law
mother-in-law
father-in-law
step-father
step-mother
step-sister
step-brother
grandfather
grandfather-in-law
grandmother
grandmother-in-law
uncle
aunt
niece
nephew
registered domestic partner
close relative residing in the
household of the 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 the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee's need for additional time off. d) Jury duty: leave of absence.

Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of their jury service.

Section 43 – Leave of Absence Without Pay.
a) Disability.

Leaves of absence without pay may be granted in cases of disability not covered by sick leave.

Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. b) Other leaves.

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Leaves of absence without pay is at the discretion and approval of management. Unauthorized leave of absence/job abandonment may result in disciplinary action up to and including termination of employment.

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. All leaves without pay must be approved in advance and in writing by the department to be effective.
c) Approval of department head.

Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case.
d) Approval by City Manager.

Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. e) Absence without leave.

Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment.
f) Leave of absence; death outside the immediate family.

Leave without pay may be granted a regular employee by their department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Subsections (b), (c), (d) and (e).
g) Military leave of absence.

State and federal law shall govern the granting of military leaves of absence and the rights of employees returning from such absence.

ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS
Section 44 – Probationary Period.
a) All original appointments to full-time or part-time regular municipal service positions shall be tentative and subject to a probationary period of twelve months for management employees b) The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing the employees work, for securing the effective adjustment of a new employee to their position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work.
c) A report of performance of each probationary employee shall be made by the department head and shown to the probationary employee on or before expiration of the probationary period.
d) During the probationary period a new employee may be suspended, demoted or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance.

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Section 45 – Disciplinary Action and Unsatisfactory Work or Conduct. Disciplinary action shall be governed by the City’s Merit Rules and Regulation, Palo Alto Police Department Policy 340 on Conduct, the Palo Alto Police Department Internal Affairs and Complaint Investigations Guidelines, and the Police Officer Procedural Bill of Rights Act.

Section 46 – Grievance Procedure.
a) The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or Association grievances, as provided for below. In presenting a grievance, the aggrieved and/or their representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. b) Definition. A Grievance is:

1. An unresolved complaint or dispute regarding the application or interpretation of this Memorandum of Agreement

2. An appeal from a disciplinary action of any kind against an employee covered by this Memorandum of Agreement.
c) Access to the Grievance Procedure. Except as otherwise provided in the Memorandum of Agreement for probationary employees, all employees represented by the Association may file and process a grievance. Such aggrieved employees may be represented by the Association or may represent themselves in preparing and presenting their grievance at any level of review. The Association may file a grievance when an Association right under this Memorandum of Agreement not directly related to an individual employee becomes subject to dispute.
d) Conduct of Grievance Procedure.

1. The time limits specified in this Article may be extended by written mutual agreement of the aggrieved employee or the Association and the reviewer concerned.

2. If a decision is not rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step.

3. The grievance will be considered settled if the decision at any step is not appealed within the specified time limit.

4. The aggrieved employee or the Association and Human Resources Director may mutually agree in writing to waive any step of the grievance procedure.

5. Written grievances shall be submitted on forms provided by the City or on forms that are mutually agreeable to the City and the Association.

6. Any retroactive monetary arbitrator award or settlement by mutual agreement shall not extend more than ninety (90) days before the date that the grievance was filed in writing at Step 2 below.

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The following steps shall apply:

Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with their immediate supervisor by the end of the tenth working day following the discovery of or the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. (Note: For purposes of time limits, the working days are considered to be Monday through Friday, exclusive of City holidays.) Appeals of disciplinary action should be processed through the procedures outlined in Step 2-3 of the Grievance Procedure.

Step II. If the grievance is not resolved through the informal discussion, the employee will reduce the grievance to writing and submit copies to the department head or their designee within ten (10) working days of the discussion with the immediate supervisor.

The department head or their designee shall have ten (10) working days from the receipt of a written grievance to review the matter and prepare a written statement.

Step III. If the grievance is not resolved at Step II, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding grievance arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Association approval. All Step III appeals must be filed in writing at the Human Resources Department Office within ten (10) working days of receipt of the Step II appeal.

If the aggrieved employee elects final and binding resolution by the City Manager, the City Manager will choose the methods they consider appropriate to review and settle the grievance. The City Manager shall render a written decision to all parties directly involved within ten working days after receiving the employee's appeal.

If the aggrieved employee elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method.

The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances appealed to the arbitrator. The arbitrator shall be without power to make any decision:

1) Regarding matters of interest.
2) Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement.

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July 1, 2025 – June 30, 2028

3) Granting any wage increases or decreases.

The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. If either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in this section and without regard to the merits of the grievance.

If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits.

Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Association. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Association.

Section 47 – No Strikes. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, concerted abuse of leave of absence provisions, work stoppage or work slowdown of any kind. No employee shall refuse to cross any picket line in the conduct of Police Department business, nor shall the Association, its representatives, or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above.

Section 48 – Reduction in Workforce. In the event of reductions in force, they shall be accomplished wherever possible through attrition.

If the work force is reduced in the Association, the City will give an employee impacted by a potential layoff 30 days' notice prior to any reduction in force.

ARTICLE XI – LOOKING FORWARD
Section 49 – Full Understanding. This Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. The parties agree that they shall each carry out their responsibilities under the MOA in good faith.

Section 50 – Legal Compliance/Severability. If any provision herein contained is rendered or declared invalid by reason of existing State or Federal legislation or by reason of State Supreme Court or U.S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable.

Section 51 – Duration. The term of this Agreement shall become effective upon ratification and adoption by both parties and shall expire on June 30, 2028.

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Memorandum of Agreement
City of Palo Alto and
Palo Alto Police Management Association (PAPMA)
July 1, 2025 – June 30, 2028
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July 1, 2025 – June 30, 2028

TABLE OF CONTENTS
ARTICLE I – PREAMBLE ................................................................................................................... 4 Section 1 – Recognition. .................................................................................................................... 4 Section 2 – Non-Discrimination. ........................................................................................................ 4 ARTICLE II – COMPENSATION ........................................................................................................ 4 Section 3 – Salary. .............................................................................................................................. 4 Section 4 – Working Out of Class Pay. .............................................................................................. 5 Section 5 – Night Shift Differential. .................................................................................................. 5 ARTICLE III – HEALTH CARE BENEFITS ....................................................................................... 6 Section 6 – Active Employee Health Plans. ....................................................................................... 6 Section 7 – Dental Benefits. ............................................................................................................... 7 Section 8 – Vision Care. .................................................................................................................... 7 Section 9 – Basic Life Insurance. ...................................................................................................... 7 Section 10 – Supplemental Life And AD&D Insurance. ................................................................... 8 Section 11 – Effective date of Coverage for New Employees. .......................................................... 8 ARTICLE IV – OTHER BENEFITS ..................................................................................................... 8 Section 12 – Holiday Compensation. ................................................................................................ 8 Section 13 – Vacation. ....................................................................................................................... 8 Section 14 – Long Term Disability. ................................................................................................... 9 Section 15 – Dependent Care Assistance Program. .......................................................................... 9 Section 16 – Medical Flexible Spending Program. .......................................................................... 10 Section 17 – Employee Assistance Plan. .......................................................................................... 10 Section 18 – Commute Incentives and Parking. ............................................................................... 10 Reopener. .......................................................................................................................................... 10 ARTICLE V –RETIREMENT ............................................................................................................. 11 Section 19 – Retirement Benefits. ................................................................................................... 11 Section 20 – Retirement Medical Plan. ........................................................................................... 11 Section 21 – ICMA - Retirement Health Savings Plan. .................................................................. 12 Section 22 – Deferred Compensation Program. .............................................................................. 12 ARTICLE VI – MANAGEMENT BENEFIT PROGRAM ................................................................. 13 Section 23 – Professional Development Reimbursement. ............................................................... 13 Section 24 – Physical Examinations. .............................................................................................. 13 Item 5
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July 1, 2025 – June 30, 2028

Section 25 – Excess Benefit. ............................................................................................................ 14 Section 26 – Management Annual Leave. ....................................................................................... 15 ARTICLE VII – OPERATIONAL ISSUES ....................................................................................... 15 Section 27 – Management Assignments. ......................................................................................... 15 Section 28 – Basic Work Schedules. ............................................................................................... 15 Section 29 – On Duty Workouts. ..................................................................................................... 16 Section 30 – Take Home Emergency Response Vehicles. ............................................................... 16 Section 31 – Modified Duty Assignments. ...................................................................................... 16 Section 32 – Meal Allowance. ........................................................................................................ 16 Section 33 – Uniforms. ..................................................................................................................... 16 ARTICLE VIII – ASSOCIATION AGREEMENTS ........................................................................... 17 Section 34 – Association Security. .................................................................................................. 17 Section 35 – Association Representative Access to Work Locations. ............................................. 17 Section 36 – Release Time. .............................................................................................................. 17 Section 37 – Use of City Facilities for Association Business. ......................................................... 17 Section 38 – Payroll Deduction. ....................................................................................................... 18 ARTICLE IX – LEAVE PROGRAMS ................................................................................................ 18 Section 39 – Sick Leave. .................................................................................................................. 18 Section 40 – Voluntary Catastrophic Leave Program. ..................................................................... 19 Section 41 – Leave of Absence With Pay. ...................................................................................... 19 Section 42 – Leave of Absence Without Pay. .................................................................................. 21 ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS .................................................................. 21 Section 43 – Probationary Period. .................................................................................................... 21 Section 44 – Disciplinary Action and Unsatisfactory Work or Conduct. ........................................ 22 Section 45 – Grievance Procedure. .................................................................................................. 22 Section 46 – No Strikes. ................................................................................................................... 24 Section 47 – Reduction in Workforce. ............................................................................................ 24 ARTICLE XI – LOOKING FORWARD ............................................................................................. 24 Section 48 – Full Understanding. ..................................................................................................... 24 Section 49 – Legal Compliance/Severability. .................................................................................. 24 Section 50 – Duration. ...................................................................................................................... 25 APPENDIX A-1 .................................................................................... Error! Bookmark not defined.

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July 1, 2025 – June 30, 2028

2023
- 2025 MEMORANDUM OF AGREEMENT
City of Palo Alto and Palo Alto Police Managers' Association ARTICLE I – PREAMBLE
This Memorandum of Agreement is pursuant to and subject to Sections 3500-3510 of the Government Code of the State of California, the Charter of the City of Palo Alto, and the City of Palo Alto Merit System Rules and Regulations.

This Memorandum of Agreement made and entered into at Palo Alto, California, by and between the City of Palo Alto, a municipal corporation (hereinafter referred to as "City") and the Palo Alto Police Managers' Association (hereinafter referred to as "Association"), is intended to define agreements reached during the meet and confer process concerning wages, hours, working conditions, and other terms and conditions of employment for the represented group of employees.

Section 1 – Recognition. On October 29, 2009, the City of Palo Alto certified the Palo Alto Police Managers' Association (Association) as a bargaining unit within the City.

The City recognizes the Association as the exclusive representative of an employee group consisting solely of Police Lieutenants and Police Captains who are regularly employed by the City and others who might be amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations.

Section 2 – Non-Discrimination. The City and the Union Association agree that there shall be no discrimination of any kind because of age (over 40), race, creed, color, religion national origin, ancestry), veterans status, physical or mental disability, marital status, sexual orientation, sex (sexual, gender based or gender identity, pregnancy/childbirth), medical condition (cancer related and genetic characteristics), or on any other basis prohibited by applicable federal and State law against any employee or applicant for employment.

The Association shall cooperate with the City, to the extent required by federal and State laws and r
egulations, in furthering the objective of Equal Employment Opportunities, as defined by Federal and State regulations.

ARTICLE II – COMPENSATION
Section 3 – Salary
a) General Salary Increase: Effective the first full pay period including the adoption of the MOA, the salary ranges of all represented classifications will be increased by three percent (3%).
b) Market Adjustment: Effective the first full pay period including following City Council Adoption the adoption of the MOA, salary ranges of all bargaining unit classifications will
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July 1, 2025 – June 30, 2028

be increased by five one percent (15.0%), which is sufficient to bring them to the top quartile of market median as determined by the City’s market study. c) General Salary Increase: Effective the first full pay period following July 1, 2023 2026, salary ranges of all represented classifications will be increased by four three percent (3.04.0%).
d) Market Adjustment: Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by one percent (1%). e) G
eneral Salary Increase: Effective the first full pay period following July 1, 2024 2027, salary ranges of all represented classifications will be increased by four three percent (3.04.0%).
f) Market Adjustment: Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by one percent (1%). g) Flexible Compensation: Effective January 1, 2023 the first full pay period following City Council Adoption, and in lieu of an increase to the City contribution towards medical premiums, each represented classification will have had their monthly income increased by $100.
h) Flexible Compensation: Effective the first full pay period following January 1, 2024, and in l
ieu of an increase to the City contribution towards medical premiums, each represented classification will have had their monthly income increased by an additional $100 (Total of $200).

Section 4 – Working Out of Class Pay. Lieutenants or Captains fulfilling the role of an acting captain, assistant chief, or chief for individual shifts and/or a number of hours within a shift, shall not receive additional compensation. Periodically working in this capacity shall be deemed a basic duty within an employee's job description.

Lieutenants and Captains working out of class for a period of four o r more consecutive shifts shall be
compensated at the start of the pay period with premium pay determined by the Chief of Police or his/her their designee up to 10% of base pay.

In accordance with Government Code 20480, an employee assigned to work in an out-of-class appointment may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence.

Section 5 – Night Shift Differential. Night shift differential shall be paid at the rate of 5% to all personnel for all hours worked between 6:00 p.m. and 8:00 a.m.

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July 1, 2025 – June 30, 2028

ARTICLE III – HEALTH CARE BENEFITS
Section 6 – Active Employee Health Plans. The maximum City contribution towards medical premiums for eligible full-time employees per employee category shall be up to a maximum of the following for any plan:

Medical Premium
Category
PEMHCA
Contribution*
Total Maximum City
Contribution (inclusive
of PEMHCA
contribution) effective
First month the first
full pay period
including City Council
Adoption
Employee Only $151.00 $871 $943
Employee plus one $151.00 $1,742 $1885
Employee Family $151.00 $2,260 $2444
E
ffective 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
PEMHCA
Contribution*
Total Maximum City
Contribution (inclusive
of PEMHCA
contribution) effective
January 1, 2027.

Employee Only $151.00 $962
Employee plus one $151.00 $1942
Employee Family $151.00 $2566
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July 1, 2025 – June 30, 2028

Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by 4%.

Medical Premium
Category
PEMHCA
Contribution*
Total Maximum City
Contribution (inclusive
of PEMHCA
contribution) effective
January 1, 2028.

Employee Only $151.00 $1000
Employee plus one $151.00 $2020
Employee Family $151.00 $2669

*Total City contribution includes both PEMHCA minimum contributions pursuant to Government Code section 22892 and an additional City contribution necessary to pay the cost of medical premiums up to the amount listed in the "Total maximum City contribution" columns above.

Section 7 – Dental Benefits.
a) The City will maintain the present level of benefits on the City-sponsored dental program for current employees and their dependents, except that the maximum benefits per calendar year shall be $2,000 effective in 1988. Dental Coverage shall include composite (tooth colored) fillings for all teeth.

Effective July 1, 2007, the City will provide 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. b) Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below.
c) During the term of the agreement, the City and the Union will work together to review benefit provisions of the City's self-funded dental program. The purpose of this review is to contain benefit cost increases. Joint recommendations will be prepared for discussion during successor agreement negotiations.
d) Dental implants in conjunction with one or more missing natural teeth, and removal of dental implants will be covered as a Major Dental Service at 50% usual, customary and reasonable (UCR).

Section 8 – Vision Care. The City will offer vision care coverage for employees and dependents.

Coverage is equivalent to $20 deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents will include domestic partners, as defined in the Active Employee Domestic Partners Section below.

Section 9 – 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 Item 5
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July 1, 2025 – June 30, 2028

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).

Section 10 – Supplemental Life And AD&D Insurance. An employee may, at his/her their cost, purchase additional life insurance and additional AD&D coverage equal to one-or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000.

Section 11 – 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, and life insurance plans if these benefits are elected.

ARTICLE IV – OTHER BENEFITS
Section 12 – Holiday Compensation. Police Managers will receive the twelve (12) paid City holidays outlined in the City of Palo Alto Merit Rules.

Floating Holiday – Days of Historical Significance. Employees will be provided one floating holiday each calendar year in acknowledgement of days of historical significance. The employee with prior approval from their supervisor can use this floating holiday at any time during the year. This holiday has no cash value and will expire if unused.

Section 13 – Vacation.
a) Vacation Accrual.

Vacation will be accrued when an employee is in pay status and will be credited on a bi-weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual.

Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status:

1. Less than nine (9) years - For employees completing less than nine (9) years continuous service; one hundred twenty (120) hours vacation leave per year. The City Manager may adjust the annual vacation accrual of employees hired on or after July 1, 2001 to provide up to forty (40) additional hours (i.e. to a maximum annual accrual of one hundred sixty (160) hours) for service with a prior employer.

2. Nine (9), but less than fourteen (14) years - For employees completing nine (9), but not more than fourteen (14) years continuous service; one hundred sixty (160) hours vacation leave per year.

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

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

b) Vacation Use.

Vacation use by police managers will be subject to approval by the Chief of Police or his/her their designee. All reasonable efforts will be made to approve vacation requests while maintaining appropriate oversight of public safety operations.

Employees shall complete six months continuous service before using accrued vacation leave. c) Vacation Cashout.

Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours from a minimum of eight (8) hours to a maximum of one hundred (120) hours, provided that the employee has taken at least eighty (80) hours of vacation in the previous twelve (12) months.

Effective for the 2012 tax year and each subsequent year, employees must pre-elect an irrevocable number of vacation hours they will cash out during the upcoming year, up to a maximum of one hundred twenty (120) hours, prior to the start of the calendar year. Employees who do not pre- designate or elect to cash out hours will be deemed to have waived the right to cash out any vacation leave in the following year.

Employees who pre-designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to payroll. For employees who have not requested payment of pre-designated cash out amounts by November 1 of each year, Payroll will automatically cash out the pre-designated amount in a paycheck issued on or after November 1. d) Vacation Pay at Termination.

Employees leaving the municipal service with accrued vacation leave shall be paid the amounts of accrued vacation to the date of termination. Payments for accrued vacation shall be at the employee's current rate of pay.
e) Vacation Benefits for Deceased Employees.

An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to the employee's estate within thirty days. This proration will be computed at the last basic rate of pay.

Section 14 – Long Term Disability. 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.

Section 15 – Dependent Care Assistance Program. The City will provide a Dependent Care Assistance Program for employees according to the provisions of the Federal Economic Recovery Act Item 5
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of 1981, Code Sections 125 and 129. The program will be available to representation unit employees beginning with pay period number 1 of 1992, and remain in effect subject to a reasonable minimum participation level and availability of third-party administrative services at a reasonable cost.

Section 16 – Medical Flexible Spending Program. The City will provide a Medical Flexible Spending Program for Association members allowing them to use pre-tax deferrals for reimbursement of excess or uncovered medical, dental and vision expenses. The plan will follow existing plan guidelines and conform to all applicable laws and regulations.

Section 17 – Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc.

Section 18 – 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 commute alternative on 60% or more of their scheduled work days per month:
a. Public Transit 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 Check 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.

Reopener. It is the City's interest to reduce single occupancy vehicle trips to the extent possible in order to address current challenges. During the term of this agreement, upon written request by the City, the parties shall meet and confer through the impasse process if necessary on changes to the City's commute incentive and parking program adopted by the City Council.

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July 1, 2025 – June 30, 2028

ARTICLE V –RETIREMENT
Section 19 – Retirement Benefits.

A. "3%@50" Safety Retirement (Employees hired on or before December 7, 2012) For employees hired by the City of Palo Alto on or before December 7, 2012, the California Public Employees' Retirement System (CalPERS) retirement formula benefit known as the "3 percent at 50 (3%@50)," per California Government Code section 21362.2, shall continue in effect with the final salary determination for such employees of the "single highest one (1) year period" per California Government Code section 20042. All unit members in the 3% @ 50 safety retirement plan shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law.

B. Second Tier "3% at 55" Safety Retirement ("Classic" Employees) For those employees hired on or after December 8, 2012 through December 31, 2012 or are classic members as defined by CalPERS, the CalPERS retirement formula benefit known as the "3 percent at 55 (3%@55)," per Government Code section 21363.1, with the final salary determination for such employees of the "three (3) highest consecutive years" based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member per Government Code section 20037. All unit members in the second tier shall pay the full 9% CalPERS member contribution. This contribution is pre-tax to the extent allowable by law.

C. Third Tier "2.7% at 57” Safety Retirement (“New” PEPRA Employees) For those employees hired on or after January 1, 2013, the CalPERS retirement formula benefit known as "2.7 percent at 57 (2.7% at 57)," with the final salary determination for such employees of the "three (3) highest consecutive years." The initial contribution rate will be at least 50% of the normal cost rate at retirement as determined by CalPERS. This contribution is pre-tax to the extent allowable by law.

D. Additional Employee PERS Contributions
Effective the pay period that includes June 30, 2017, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay a3% towards the Employer share of Pension.

Effective the pay period that includes June 30, 2021, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Such contributions under CalPERS 20516 will be provided on a pre-tax basis to the extent allowable by law.

Section 20 – Retirement Medical Plan.

A. Retiree Medical Coverage for Unit Employees Hired Before January 1, 2004:

Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees hired before January 1, 2004 as outlined below.

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July 1, 2025 – June 30, 2028

For employees who retire before June 1, 2012, the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to PMA employees among the existing array of plans.

For employees who retire on or after June 1, 2012, The City contribution towards retiree medical shall be the same contribution amount it makes for active City employees.

Effective upon ratification and adoption of this Agreement (Scheduled for January 11, 2016), the City shall provide active unit 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 People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement.

B. 20-Year Vesting Schedule for Retiree Medical Coverage for Unit Employees Hired on or After January 1, 2004 and employees who chose to opt-in to retiree health benefits provided under California Government Code section 22893 as outlined above:

The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January I, 2004 and employees who opt-in as outlined above. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents.

Section 21 – ICMA - Retirement Health Savings Plan. The City provides an ICMA retirement health savings plan for Association members. The ICMA retirement health savings plan is subject to applicable IRS rules and plan guidelines as well as any other applicable laws. Each Association member shall make a pre-tax contribution to the plan as follows:

1. Each member shall contribute 1% of their base salary bi-weekly into the plan.

2. Failure by each member to contribute will deem the health savings plan out of compliance with IRS and plan guidelines.

3. The administrative fee shall be paid by the Association member.

The manner and amount of contributions may be periodically modified by agreement of both parties.

Section 22 – Deferred Compensation Program. The City will provide a Deferred Compensation Program for employees according to the provisions of the plans and applicable IRS guidelines.

Effective July 1, 2026, the City will contribute $250 monthly to the 457 plan of each represented employee.

Effective July 1, 2027, the City will contribute a total of $400 monthly to the 457 plan of each represented employee.

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July 1, 2025 – June 30, 2028

ARTICLE VI – MANAGEMENT BENEFIT PROGRAM
Section 23 – Professional Development Reimbursement. 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 to each Association 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/her 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 will be at 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.

Section 24 – Physical Examinations. All management and professional employees are eligible to receive an annual physical examination as follows:
a) Use the periodic health exam benefit as provided under the PERS Health Plan option you have selected. Each of the PERS Health Plans provides for a periodic physical examination.

The examination must be performed by your primary care physician – unless he/she they refers you to another physician.
b) The types of tests and the frequency of the tests cannot exceed AMA guidelines. The guidelines are a suggested minimum based on research studies concerning preventative care. The judgment of your physician is the final determinant for your care. c) Any additional necessary asymptomatic tests that are required by your physician that are not covered by your health plan will be reimbursed by the City. Any symptomatic tests will be covered under your PERS Health Plan.

The Reimbursement for Periodic Physical Exam Form is available on the Human Resources Intranet site. This benefit will not be pro-rated.

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July 1, 2025 – June 30, 2028

Section 25 – Excess Benefit. This benefit is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 3,000 annually that they can designate among the following options:
a) Medical Flexible Spending Account (Medical FSA).

Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as well as over-the-counter drugs, including: antacids, allergy medicines, pain relievers and cold medicines. However, nonprescription dietary supplements (e.g. vitamins, etc.) toiletries (e.g. toothpaste), cosmetics (e.g. face cream), and items used for cosmetic purposes (e.g. Rogaine) are not acceptable.
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 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.
1) The annual amount submitted for reimbursement cannot exceed the income of the lower-paid spouse.
2) 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.
3) The payments cannot be made to a child under 19 years of age or to a person claimed as a dependent.
4) 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 individuals (other than a resident of the facility).
5) 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.

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.

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e) Deferred Compensation.

The $2,500 3,000 excess benefit provided in this section made on a one-time contribution basis on election by the employee towards the employee's City-sponsored 457 Deferred Compensation plan with either ICMA-RC or the Hartford.

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-rata 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 employment (based on hire date) but will not be pro- rated upon separation of employment.

Section 26 – Management Annual Leave. At the beginning of each calendar year regular management employees will be credited with eighty (80) hours of management annual leave. This leave is granted in recognition of the extra hours management 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 shift off for each 8 hours charged. 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 fiscal 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 calendar year will be paid in cash unless a different option as indicated above is elected by the employee.

Section 27 - POST Certificate/Incentive
Management POST Certification: Employees that qualify for the Management POST certificate will receive a four percent (4%) increase to base pay effective the first full pay period after the employee provides proof of submission of the required paperwork to POST. Employees become eligible for Management POST certificate pay one (1) year after promotion or appointment to a represented classification.

ARTICLE VII – OPERATIONAL ISSUES
Section 28 – Management Assignments. The Chief of Police or his/her their designee shall have the authority to make management assignments at his/her their discretion. Where possible, these assignments should take into account the needs of the organization, development of the employee and individual employee desires.

Section 29 – Basic Work Schedules. Generally, police managers will be expected to work flexible schedules and reasonably adjust their hours to oversee their employee groups, manage 24/7 law enforcement operations, perform routine work, complete daily assignments, and occasionally Item 5
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July 1, 2025 – June 30, 2028

attend meetings or other events outside their normal work shifts. Basic work schedules will be the 4/10 schedule.

Section 30 – On Duty Workouts. Police managers who complete the yearly Wellness Program requirements may participate in an on-duty workout for a reasonable period as determined by the Chief, as long as it does not interfere with the performance of the employee's job duties, for which the employee will remain accountable. Applicable guidelines and conditions are outlined in the Department's Wellness Program Policy which the City may change from time to time.

Section 31 – Take Home Emergency Response Vehicles. Subject to approval by the City Manager and the Police Chief, Police Captains will continue the current take home emergency response vehicle program which allows for the immediate and emergent response to public safety incidents involving the City.

The specific use and restrictions for driving these vehicles shall adhere to the guidelines outlined in the then current version of City Policy and Procedure 4-01.

Section 32 – Modified Duty Assignments. In cases of non-work-related injury, illness or pregnancy, an employee, upon approval of the department head, City Risk Manager and the employee's doctor, may return to work or continue work with doctor-approved limited or alternative duty pursuant to Policy & Procedure 2-04. Approval for reasonable accommodation such as limited/alternative duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. The City doctor may be consulted in determining work limitations.

Any assignment to a limited/alternative duty will be on a temporary basis.

Section 33 – Meal Allowance. Police managers attending night meetings will be eligible for meal re- imbursement under the guidelines set forth in the then current version of City Policy and Procedure No. 1-02.

Section 34 – Uniforms.
a) The City will supply complete uniforms to all sworn personnel. All uniform items are the property of the City. One complete uniform consists of: (I) three pair of trousers, (2) three short-sleeved shirts with patches and zippers if desired, (3) three long-sleeved shirts with patches and zippers if desired, (4) three cotton or two synthetic fiber turtleneck shirts, (5) hat, (6) duty jacket with patches, (7) dress jacket with patches, (8) necktie, and (9) rain gear. b) At the time of initial employment, every sworn employee will be issued one complete uniform. Uniform items will be replaced on an as-needed basis subject to verification by management.
c) The City shall provide uniform cleaning for sworn representation unit personnel. d) Personnel are accountable for all uniform items issued to them. If a particular item is lost or damaged due to employee negligence, the employee will be required to reimburse the City for value of the item(s) lost or damaged.
e) The City shall reimburse employees for the full cost of job-related boots upon verification of such purchase by the employees. The City will make the reimbursement only upon proof that the previous boots have become unserviceable due to wear or Item 5
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July 1, 2025 – June 30, 2028

damage. (Job-related boots shall mean well-constructed, high topped boots that provide full ankle and foot support, which are selected from list agreed to by Management and the Association.)

Employees are responsible for the full cost of any low-top, black shoes that are worn with the uniform.

ARTICLE VIII – ASSOCIATION AGREEMENTS
Section 35 – Association Security.
a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Unit and give the employee a current copy of the Memorandum of Agreement. b) If there is no disruption of work, members of the Association Board of Directors may use a reasonable amount of on-duty time without loss of pay to meet with Management specifically related to representation of employees. Such release time must be cleared in advance by the Chief (or his/her their Designee) who is a member of management.

For purposes of this section, representation shall include:
(i) Meetings with represented employees or management related to a grievance or disciplinary action, including investigation and preparation time. (ii) A meeting with management related to benefits, working conditions or other terms and conditions of employment.

Section 36 – Association Representative Access to Work Locations. Employee and non-employee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum of Understanding, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs. Advance arrangement shall normally include not less than one hour's notice in the case of an employee Association representative, two hours in the case of non- employee Association representatives. Non-employee representatives must also notify the Human Resources Department Manager (or designee) of the time, date and location of the representative's intended visit.

Section 37 – Release Time. The Association President or his/her their designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary issues, and training for association members.

Release time shall normally be approved in advance by the department head and must not detract from the performance of the representative's City job duties, for which he/she they will remain accountable.

Section 38 – Use of City Facilities for Association Business. Any use of City facilities shall be governed by the then current version of City Policy and Procedure No. 4-07.

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Section 39 – Payroll Deduction. The City shall deduct Association membership dues and any other mutually agreed upon payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card acceptable to the City and the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction.

ARTICLE IX – LEAVE PROGRAMS
Section 40 – Sick Leave.
a) Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Subsection (i), personal business chargeable to sick leave. Up to 8 days sSick leave per year may be used for illness in the immediate family (spouse, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee).

b) Eligibility.

Regular and part-time employees shall be eligible to accrue and use sick leave. c) Accrual.

Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent 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.
d) Accumulation.

Sick leave accrual accumulation shall be limited to 1,000 hours with no payoff provision for unused balance at termination.
e) Use.

Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight hours or shift equivalent of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination.

An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her their option, choose either to receive the long-term disability benefits or to utilize the remainder of his/her their accrued sick leave prior to applying for long-term disability benefits.

Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence.

When an employee finds it necessary to be absent for any reason, he/she they should contact the Department as soon as possible, but no later than the start of the scheduled shift on the first Item 5
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working day of absence, and shall regularly report by the start of each subsequent shift unless hospitalized. Such reports may be subject to written documentation if there is reasonable evidence that sick leave abuse has occurred. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant.

Documentation may also be required if there is a reasonable basis to believe that the employee may not be medically fit to return to work.
f) Depletion of Sick Leave Benefits.

Upon depletion of sick leave or the beginning of the period to be covered by payments under the long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she they must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. g) Forfeiture Upon Termination.

Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law. 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. h) Personal Business Leave Chargeable to Sick Leave.

Employees may use up to twenty (20) 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.

Section 41 – Voluntary Catastrophic Leave Program. If permitted by agreement between the City and the Palo Alto Police Officers' Association (P.O.A.) members of the Palo Alto Police Managers' Association representation unit may participate in the "Voluntary Leave Program" applicable to the P.O.A. representation unit to assist in maintaining the pay of an employee who is eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- P.O.A. agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law). Otherwise, said program shall be governed by the conditions and restrictions set forth in the City-P.O.A. Memorandum of Agreement.

Section 42 – Leave of Absence With Pay. The City Manager may grant a regular employee under his/her their control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he/she they deems adequate and in the best interest of the City.

The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. a) Subpoenas: leave of absence.

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Regular employees who are subpoenaed in their capacity as a City employee to appear as witnesses on behalf of the State of California or any of its agencies may be granted leaves of absence with pay from their assigned duties until released. The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his/her their services as a witness. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee.
b) Employee's time off to vote.

Pursuant to Elections Code section 14000, when the employee is unable to vote outside of the employee's work hours, up to two (2) hours' time off with pay to vote at any general or direct primary election shall be granted at the beginning or end of the employee's scheduled shift, whichever allows the most free time for voting and the least time off from the regular working shift.

Such time off with pay to vote shall only be granted if the employee provides at least two working days' notice that time off for voting is desired, unless the nature of the employee's schedule prevents the employee from anticipating the need for time off to vote. c) Leave of absence; death in family.

Leave of absence with pay of three (3) days may be granted to an employee by the head of his/her their department in the event of death in the employee’s family, but shall not exceed a total of six (6) paid work days per calendar year. For purposes of this section, family is defined as:
wife
husband
son
son-in-law
daughter
daughter-in-law
father
mother
brother
brother-in-law
sister
sister-in-law
mother-in-law
father-in-law
step-father
step-mother
step-sister
step-brother
grandfather
grandfather-in-law
grandmother
grandmother-in-law
uncle
aunt
niece
nephew
registered domestic partner
close relative residing in the
household of the 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 (3) five (5) days shall be subject to the approval of the City Manager. Approval of additional leave will be based on the circumstances of each request with consideration given to the employee's need for additional time off. d) Jury duty: leave of absence.

Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his/her their jury service.

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Section 43 – Leave of Absence Without Pay.
a) Disability.

Leaves of absence without pay may be granted in cases of disability not covered by sick leave.

Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physicians' verification including diagnosis and medical work restriction. b) Other leaves.

Leaves of absence without pay is at the discretion and approval of management. Unauthorized leave of absence/job abandonment may result in disciplinary action up to and including termination of employment.

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. All leaves without pay must be approved in advance and in writing by the department to be effective.
c) Approval of department head.

Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case.
d) Approval by City Manager.

Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. e) Absence without leave.

Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment.
f) Leave of absence; death outside the immediate family.

Leave without pay may be granted a regular employee by his/her their department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Subsections (b), (c), (d) and (e).
g) Military leave of absence.

State and federal law shall govern the granting of military leaves of absence and the rights of employees returning from such absence.

ARTICLE X – EMPLOYEE/EMPLOYER RELATIONS
Section 44 – Probationary Period.
a) All original appointments to full-time or part-time regular municipal service positions shall be tentative and subject to a probationary period of twelve months for management employees Item 5
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b) The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing the employees work, for securing the effective adjustment of a new employee to his/her their position, and for rejecting any probationary employee whose performance does not meet the acceptable standards of work. c) A report of performance of each probationary employee shall be made by the department head and shown to the probationary employee on or before expiration of the probationary period.
d) During the probationary period a new employee may be suspended, demoted or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance.

Section 45 – Disciplinary Action and Unsatisfactory Work or Conduct. Disciplinary action shall be governed by the City’s Merit Rules and Regulation, Palo Alto Police Department Policy 340 on Conduct, the Palo Alto Police Department Internal Affairs and Complaint Investigations Guidelines, and the Police Officer Procedural Bill of Rights Act.

Section 46 – Grievance Procedure.
a) The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of employee grievances, or Association grievances, as provided for below. In presenting a grievance, the aggrieved and/or his/her their representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. b) Definition. A Grievance is:

1. An unresolved complaint or dispute regarding the application or interpretation of this Memorandum of Agreement

2. An appeal from a disciplinary action of any kind against an employee covered by this Memorandum of Agreement.
c) Access to the Grievance Procedure. Except as otherwise provided in the Memorandum of Agreement for probationary employees, all employees represented by the Association may file and process a grievance. Such aggrieved employees may be represented by the Association or may represent themselves in preparing and presenting their grievance at any level of review. The Association may file a grievance when an Association right under this Memorandum of Agreement not directly related to an individual employee becomes subject to dispute.
d) Conduct of Grievance Procedure.

1. The time limits specified in this Article may be extended by written mutual agreement of the aggrieved employee or the Association and the reviewer concerned.

2. If a decision is not rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step.

3. The grievance will be considered settled if the decision at any step is not appealed within the specified time limit.

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4. The aggrieved employee or the Association and Human Resources Director may mutually agree in writing to waive any step of the grievance procedure.

5. Written grievances shall be submitted on forms provided by the City or on forms that are mutually agreeable to the City and the Association.

6. Any retroactive monetary arbitrator award or settlement by mutual agreement shall not extend more than ninety (90) days before the date that the grievance was filed in writing at Step 2 below.

The following steps shall apply:

Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with his/her their immediate supervisor by the end of the tenth working day following the discovery of or the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. (Note: For purposes of time limits, the working days are considered to be Monday through Friday, exclusive of City holidays.) Appeals of disciplinary action should be processed through the procedures outlined in Step 2-3 of the Grievance Procedure.

Step II. If the grievance is not resolved through the informal discussion, the employee will reduce the grievance to writing and submit copies to the department head or his/her their designee within ten (10) working days of the discussion with the immediate supervisor.

The department head or his/her their designee shall have ten (10) working days from the receipt of a written grievance to review the matter and prepare a written statement.

Step III. If the grievance is not resolved at Step II, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding grievance arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Association approval. All Step III appeals must be filed in writing at the Human Resources Department Office within ten (10) working days of receipt of the Step II appeal.

If the aggrieved employee elects final and binding resolution by the City Manager, the City Manager will choose the methods he/she they considers appropriate to review and settle the grievance. The City Manager shall render a written decision to all parties directly involved within ten working days after receiving the employee's appeal.

If the aggrieved employee elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method.

The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement and such Merit System Rules, regulations, Item 5
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July 1, 2025 – June 30, 2028

policies, procedures, City ordinances, resolutions relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances appealed to the arbitrator. The arbitrator shall be without power to make any decision:

1) Regarding matters of interest.
2) Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement.
3) Granting any wage increases or decreases.

The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. If either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of this Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in this section and without regard to the merits of the grievance.

If the issue is held to be arbitrable, the arbitration proceedings will be recessed for up to five working days during which the parties shall attempt to resolve the grievance. If no resolution is reached, the arbitrator will resume the hearing and hear and resolve the issue on the merits.

Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Association. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Association.

Section 47 – No Strikes. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, concerted abuse of leave of absence provisions, work stoppage or work slowdown of any kind. No employee shall refuse to cross any picket line in the conduct of Police Department business, nor shall the Association, its representatives, or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above.

Section 48 – Reduction in Workforce. In the event of reductions in force, they shall be accomplished wherever possible through attrition.

If the work force is reduced in the Association, the City will give an employee impacted by a potential layoff 30 days' notice prior to any reduction in force.

ARTICLE XI – LOOKING FORWARD
Section 49 – Full Understanding. This Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. The parties agree that they shall each carry out their responsibilities under the MOA in good faith.

Section 50 – Legal Compliance/Severability. If any provision herein contained is rendered or declared invalid by reason of existing State or Federal legislation or by reason of State Supreme Court or U.S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Item 5
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Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable.

Section 51 – Duration. The term of this Agreement shall become effective upon ratification and adoption by both parties and shall expire on June 30, 2025 2028.

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Job Code FLSA Classification Grade  Code Min  Hourly Rate Mid  Hourly Rate Max  Hourly Rate Approx  Max Monthly Salary Approx  Max Annual Salary 147 Exempt Police  Captain‐Adv 023 $  99.56 $  124.45 $  149.34 $  25,886 $  310,627 149 Exempt Police  Liet‐Adv 086 $  89.07 $  111.33 $  133.60 $  23,157 $  277,888 Job Code FLSA Classification Grade  Code Min  Hourly Rate Mid  Hourly Rate Max  Hourly Rate Approx  Max Monthly Salary Approx  Max Annual Salary 147 Exempt Police  Captain‐Adv 023 $  103.55 $  129.43 $  155.32 $  26,922 $  323,066 149 Exempt Police  Liet‐Adv 086 $  92.64 $  115.79 $  138.95 $  24,085 $  289,016 Job Code FLSA Classification Grade  Code Min  Hourly Rate Mid  Hourly Rate Max  Hourly Rate Approx  Max Monthly Salary Approx  Max Annual Salary 147 Exempt Police  Captain‐Adv 023 $  107.69 $  134.61 $  161.54 $  28,000 $  336,003 149 Exempt Police  Liet‐Adv 086 $  96.35 $  120.43 $  144.52 $  25,050 $  300,602 Effective 08/09/2025 (4% Increase)
Effective First Full Pay Period Following July 1, 2026 (7/11/2026 ‐ 4% Increase) Effective First Full Pay Period Following July 1, 2027 (7/10/2027 ‐ 4% Increase) Palo Alto Police Managers' Association (PAPMA) Salary Schedule Item 5
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: August 11, 2025
Report #:2507-4970
TITLE
Adoption of a Resolution Establishing Fiscal Year 2026 Property Tax Levy for General Obligation Bonds (Measure N Libraries))

RECOMMENDATION
Staff recommends that the City Council approve a resolution approving the establishment of the Fiscal Year 2026 property tax levy of $7.45 per $100,000 in Assessed Value for the secured and utility tax roll and $7.61 per $100,000 in AV for the unsecured tax roll for the City of Palo Alto's Measure N General Obligation Bond Library Bonds.

EXECUTIVE SUMMARY
In 2008, Palo Alto voters passed Measure N which gave the City authority to issue a maximum amount of $76 million of General Obligation bonds (the "Bonds") for capital improvements (libraries). Annually, a property tax levy sufficient to pay debt service on the Bonds must be approved by the City Council and submitted to the County of Santa Clara for collection with the property taxes.

BACKGROUND
On November 4, 2008, City voters passed Measure N which gave the City authority to issue a maximum amount of $76 million of General Obligation bonds (the "Bonds") for capital improvements to the Mitchell Park, Downtown, and Rinconada (formerly Main) libraries and to construct the Mitchell Park community center. The City successfully sold the Bonds in two series to provide $76 million in funds for the design and construction costs. Both Standard and Poor's and Moody's awarded their highest credit ratings, Triple A, to both series of Bonds which was affirmed by Standard and Poor’s in May 2022 and Moody’s in December 2024.

On March 1, 2016, Council approved the decommissioning of the Library Bond Oversight Committee and accepted a financial report showing approximately $3.0 million in project Item 6
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savings (CMR: 6632). 1In addition, bond premium of $3.1 million could be used to redeem and/or defease bonds. On June 6, 2016, Council authorized the use of $6.1 million of the Series 2010A & 2013A General Obligation (Measure N) Bonds to defease and/or retire a portion of outstanding bonds and to pay associated redemption costs (CMR: 6993)2. To maximize savings to property owners the longest bonds were paid off; total savings of $11 million were realized which includes $4.9 million in interest savings over time. Of the $11 million, $5.4 million will be saved through FY 2040 while $5.6 million will be saved from FY 2041 through FY 2044.

On March 2, 2022, Council approved the refinancing of the Series 2010A and 2013A outstanding principal of $40.6 million and $13.6 million respectively (CMR: 13438; on page 12 of link)3. The Series 2010A was refinanced as a tax-exempt bonds and Series 2013A was partially refinanced as taxable bonds. The tax reform bill passed by Congress and signed into law on December 22, 2017 prohibits the issuance of tax-exempt advance refunding bonds during the (ten-year) call protection period. The call protection period had passed on the Series 2010A Bonds, but it had not passed for the Series 2013A Bonds. The portions of the Series 2013A bonds or $2.1 million in principal, that had realized savings were refinance. In total, net present value savings of $4.5 million or 10.6 percent were realized. The cash savings is $6.4 million and average annual debt service savings over 18 years is $356 thousand. There are three General Obligation Bonds outstanding; the portion of the tax-exempt Series 2013A bonds that were not refinanced, the tax-exempt Series 2022A bonds that refinanced the Series 2010A bonds, and the taxable Series 2022B bonds that partially refinanced the Series 2013A bonds. Standard and Poor's affirmed their highest credit ratings, Triple A, to both the issuer or City of Palo Alto’s General Fund credit rating and the long-term rating on the City’s General Obligation Bonds outstanding in May 2022.

As of July 1, 2025, principal amount of $44.7 million is outstanding on the General Obligation Bonds. All bonds are due to be paid off by FY 2042.

ANALYSIS
Debt service payments on these Bonds are paid through ad valorem taxes on all taxable land and improvements (both secured and unsecured assessment roll) within the City. Staff is seeking Council approval of the attached resolution (Attachment A) which authorizes the placement of an ad valorem property tax levy in the amount of $0.00745 per $100 or $7.45 per $100,000 in Assessed Value (AV) for the secured tax roll; and $0.00761 per $100 or $7.61 per $100,000 in AV for the unsecured tax roll. In comparison, prior year’s secured and unsecured tax levy was $7.61 and $8.07 respectively, per $100,000 of AV. 1 City Council, March 21, 2016, CMR 6632: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2016/6632-mini-packet.pdf 2 City Council, June 6, 2016, CMR 6993: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2016/6993.pdf 3 City Council, May 2, 2022, CMR 13438: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20220502/20220502pccsmamended-linked.pdf Item 6
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The assessment rate for FY 2026 is decreasing for both the secured and unsecured property taxes. The rate decreases are attributable to the rise in the Secured AV for properties throughout Palo Alto by 5.0 percent, an increase of $2.5 billion. In addition, the rise in AV during FY 2025, due to property sales and new construction, resulted in excess collections which further reduced the FY 2026 annual assessment.

As for the unsecured property taxes, per the County of Santa Clara’s methodology, the prior year’s secured tax rate becomes this year’s unsecured tax rate as a result this rate won’t benefit from the current year’s AV increase until FY 2026. However, it did benefit from the Secured AV increase that occurred in FY 2025.

With the new assessment for FY 2026, a property (house) with an assessed value of $1.0 million, for example, would see an annual assessment of $74.50 on their property tax bill. In comparison, in FY 2025, a $1.0 million home had an assessment of $76.10.

FISCAL/RESOURCE IMPACT
The bond issuances result in a 2026 calendar year debt service expenditure of approximately $4.05 million and Council approval of the attached resolution will result in ad valorem tax levy revenue of $4.03 million with the $0.02 million difference attributable to available funds on hand. Again, secured and unsecured property owners will see a levy of $7.45 and $7.61, respectively, per $100,000 of AV on their FY 2026 property tax statement.

STAKEHOLDER ENGAGEMENT
Staff works with the County of Santa Clara who provide the property assessed valuation for the coming fiscal year which this then used by staff to calculate the property tax levy tax rates. The Measure N tax was approved by 69% of the voters in 2008 and the expenditures of the bond proceeds were monitored by a citizen oversight committee, which concluded in 2016.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by the California Environmental Quality Act because approval of the Measure N property tax levy is a government funding mechanisms or fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).

ATTACHMENTS
Attachment A: Resolution Establishing FY 2024-25 Property Tax Levy Attachment B: Exhibit A - General Obligation Bonds, Election of 2008, Series 2013 2022A, & 2022B Tax Rate Calculation Based on 2024-25 Assessed Values APPROVED BY:

Lauren Lai, Administrative Services Director
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Attachment A
Not Yet Approved
1 Resolution No.

Resolution of the Council of the City of Palo Alto Establishing Fiscal Year 2026 Property Tax Levy of $7.45 Per $100,000 of Secured and $7.61 Per $100,000 of Unsecured Assessed Valuations for the City’s General Obligation Bond Indebtedness
(Measure N Library Projects)

R E C I T A L S
A. At the City of Palo Alto’s (“City”) general election held on November 4, 2008, more than two‐thirds of voters approved Measure N, authorizing the issuance of general obligation bonds in the amount not to exceed $76,000,000 (the “Authorization”) to fund construction of a new Mitchell Park Library and Community center and renovation and improvements to Downtown and Main libraries.

B. Pursuant to the Authorization, the City issued two series (Series 2010A and 2013A) of general obligation bonds in June 2010 and June 2013 that yielded $75.8 million for project needs. In June 2022, the Series 2010A was refinanced with a tax‐exempt Series 2022A and the Series 2013A was partially refinanced with a taxable Series 2022B. As a result,  there  are  three  general  obligation  bonds  series  outstanding,  the  Series  2013A portion that wasn’t refinanced and the refinanced Series 2022A and 2022B bonds.

C. The City is obligated to levy ad valorem taxes on all property within the City subject to taxation by the City, without limitation on rate or amount (except with respect to certain personal property which is taxed at limited rates), for the payment of the debt service on the Bonds.

D. The City is obligated to direct the County of Santa Clara to collect such ad valorem taxes in such amounts and at such times as is necessary to ensure the timely payment of debt service on the Bonds.

E. The amount of the annual ad valorem tax levied by the City to repay the Bonds is determined by the relationship between the assessed valuation of taxable property in the City and the amount of debt service due on the bonds.

The Council of the City of Palo Alto RESOLVES as follows:

SECTION 1. Pursuant to the Authorization, an ad valorem property tax is hereby established to be levied on all land and improvements in the City of Palo Alto during Fiscal Year 2025 in the amount of $0.00745 per $100 in assessed value for the secured and utility tax roll and $0.00761 per $100 in assessed value for the unsecured tax roll based Item 6
Attachment A - Resolution
Establishing FY 2024-25
Property Tax Levy

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Attachment A
Not Yet Approved
2 on the calculations set forth in the attached Exhibit "A".

SECTION 2. The City’s Director of Administrative Services shall cause a certified copy of this Resolution to be delivered to the Auditor of the County of Santa Clara for entry in the assessment book of the respective sums in dollars and cents, to be paid as established by this Resolution.

SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk  Mayor
APPROVED AS TO FORM:  APPROVED:

Assistant City Attorney  City Manager

Director of Administrative Services
Item 6
Attachment A - Resolution
Establishing FY 2024-25
Property Tax Levy

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A) Assessed Valuations (AV )
1 ) 2025-26 Taxable Secured Assessed Valuation (AV) 51,809,035,097 $ 2 ) 2025-26 Taxable Unsecured A V 2,365,273,961$
3 ) Less: Estimated Delinquenc y 0.00% - $
4 ) Net Taxable Unsecured AV 2,365,273,961$
5 ) Total Assessed Valuation (AV ) 54,174,309,058$
B) Tax Levy Requiremen t
5 ) 2026 Calendar Year Debt Service Payments
2013 (Tax-Exempt) GO Bonds - February 1,2026 211,425.00 $ 2013 (Tax-Exempt) GO Bonds - August 1, 2026 211,425.00 422,850.00 6 ) 2022A (Tax-Exempt) GO Bonds - February 1,2026 762,625.00 $ 7 ) 2022A (Tax-Exempt) GO Bonds - August 1, 2026 2,282,625.00 3,045,250.00 8 ) 2022B (Taxable) GO Bonds - February 1,2026 32,300.00 $ 9 ) 2022B (Taxable) GO Bonds - August 1, 2026 552,300.00 584,600.00 10 ) Total Calendar Year 2026 Debt Service Payments 4,052,700.00 11 ) Excess Funds on Hand Applied Toward Debt Service (25,000.00) 12 ) Sub-total 4,027,700.00
13 ) Santa Clara County Administration Fee (0.25% of Principal & Interest) 10,069.25 14 ) Total 2025-26 Annual Debt Service Requirement 4,037,769.25 C) Secured and Unsecured Tax Rate
15 ) 2025-26 Unsecured Tax Rate per $100 of Unsecured AV (Prior Year's Secured Tax Rate) 0.00761 $ 16 ) 2025-26 Unsecured Tax Rate per $100,000 of Unsecured AV 7.61 $ 17 ) 2025-26 Estimated Revenue from Unsecured AV (line 4 divide by 100 times by line 15) 179,997.35 $ 18 ) 2025-26 Estimated Revenue from Secured AV (line 14 minus line 17 ) 3,857,771.90 19 ) Total 2025-26 Annual Debt Service Requirement 4,037,769.25 $ 20 ) 2025-26 Secured Tax Rate per $100 of Secured AV (line 18 divided by line 1 times 100) 0.00745 $ 21 ) 2025-26 Secured Tax Rate per $100,000 of Secured AV (line 18 divided by line 1 times 100,000) 7.45 $ Exhibit A
City of Palo Alto
General Obligation (GO) Bonds, Election of 2008, Series 2013, 2022A and 2022B Tax Rate Calculation Based on 2025-26 Assessed Values
Item 6
Attachment B - Exhibit A -
General Obligation Bonds,
Election of 2008, Series
2013 2022A, & 2022B Tax
Rate Calculation Based on
2024-25 Assessed Values

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: August 11, 2025
Report #:2505-4723
TITLE
Adopt a Resolution to Modify Evergreen Park-Mayfield Residential Preferential Parking Program Employee Permit Allotment and Zone Revisions and Create New Two-Hour Parking Areas Adjacent to El Camino Real; CEQA Status: Exempt pursuant to CEQA Guidelines Sections 15061(b)(3) and 15301.

RECOMMENDATION
Staff recommends that the City Council: Adopt a resolution to increase the allotment of employee permits from 50 to 65 and redraw Zones A-D to better distribute employee permit parking. The resolution also expands 2-hour parking zones on four streets perpendicular to El Camino Real. Approving these changes to the Evergreen Park-Mayfield (EPM) Residential Preferential Parking (RPP) district will better accommodate changed employee needs while continuing to appropriately distribute impacts of employee parking in line with RPP goals.

EXECUTIVE SUMMARY
In 2021, Council approved changes to the EPM RPP in order to encourage use of expanded parking supply in the California Avenue business district.

In 2024, Council made further modifications to the EPM RPP program to account for the repurposing of parking lanes along El Camino Real, which eliminated on-street parking in Zone G. Employee parking permits from Zone G were therefore allocated to Zones A through D in the EPM neighborhood.

Based on observations of on-street parking demand and parking permit sales for the EPM neighborhood, staff recommends further adjustments to Zones A-D in order to create more even on-street availability throughout the neighborhood. In order to better account for parking displacement, staff also recommends increasing the total number of employee permits across the EPM zones from 50 to 65 and expanding 2-hour parking to certain streets perpendicular to El Camino Real.

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BACKGROUND
On December 15, 2014, Council established a Citywide Residential Preferential Parking (RPP) Ordinance, to reduce parking impacts in residential neighborhoods while also accommodating some non-residential parking demands.1 Based on this ordinance, an RPP was established for the Evergreen Park / Mayfield (EPM) neighborhood including accommodation of a number of employee permits within various zones shown in Figure 1.

Figure 1: Evergreen Park - Mayfield Existing Parking Zones Over the past decade, various adjustments have been made to the RPP program as discussed below and summarized in Table 1.

Table 1: RPP Program Adjustments
Date Action
December 15, 2014 Residential Preferential Parking (RPP) Ordinance adopted February 23, 2016 RPP eligibility criteria adjusted
1Ordinance #5294 https://www.cityofpaloalto.org/civicax/filebank/documents/46201 Item 7
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June 17, 2017 RPP parameters adjusted
April 6, 2020 RPP suspended during COVID state of emergency November 2020 Sherman garage completed
November 9, 2020 EPM RPP employee parking transitioned to California Ave district November 1, 2021 Pricing adjustment to encourage employee parking in Sherman garage June 2024 Caltrans commences construction on El Camino Real June 18, 2024
August 12, 2024
Transition of Zone G (El Camino Real) employee permits to Zones A - D In November 2020, the City completed construction of a new parking garage at 350 Sherman Avenue which expanded parking supply in the California Avenue parking district through construction of 627 motor vehicle parking spaces (317 net new vehicle spaces) as well as 50 bicycle parking spaces.3 In response to this expanded parking supply, Council approved adjustments to the Evergreen Park-Mayfield RPP program, which transitioned employee permits from the EPM area (Zones A - F) to the California Avenue Business District on November 9, 2020.4 Employee permits were also accommodated in Zone G, along El Camino Real (ECR) also known as State Route 82. On November 1, 2021, Council approved permit pricing changes to set garage and lot permit prices at 75% of employee permit prices for the EPM on-street parking and to focus employee permit availability to Zone G only. Zone G availability was set to 40 permits, with up to 10 more available with the approval of the Direction of the Office of Transportation. This change effectively encouraged district employees to utilize parking spaces in the new garage and increased the availability of on-street spaces for visitors and residents, while still accommodating ECR businesses’ demand for employee parking opportunities.

In 2024, the State of California Department of Transportation (Caltrans) commenced construction to rehabilitate and enhance safety along El Camino Real, including roadway repaving, ADA compliant pedestrian push buttons, high visibility crossings and repurposing parking lanes to create protected bikeways in Palo Alto, Los Altos and Mountain View. This work displaced approximately 130 on-street parking spaces on both sides of El Camino including all spaces previously designated as Zone G. To account for this change, on June 18, 2024, and August 12, 2024, Council authorized adjustment of the RPP program to reallocate Zone G employee permit holders to Zones A-D of the EPM neighborhood. Staff recommended 3 SR#11161 https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2020-2/id-11716.pdf?t=49950.84 4 https://www.cityofpaloalto.org/gov/depts/trn/parking/residents/evergreen_park_mayfield.asp Item 7
Item 7 Staff Report

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allocation of 50 employee permits to Zones A-D based on the following rough estimates of demand: 7 10 to Zone A; 10 to Zone B; 15 to Zone C; and 15 to Zone D.

ANALYSIS
In accordance with Council direction, staff have been monitoring use of the EPM RPP program since Zone G employee permits were transitioned to Zones A – D in August 2024.

Staff observations and parking occupancy counts reveal that Zone A has been most impacted from the Caltrans project and should accommodate fewer employee permits. Segments of Zones B and C, which also sold out, located furthest from ECR had some availability, while areas close to ECR were more heavily used.

During the parking permit sales cycle from January 2025 through June 2025, permits within Zones A-C of the EPM RPP sold out, while Zone D concluded the sales cycle with spaces still available. Remaining permit availability in Zone D may reflect the City‘s efforts to set California Avenue district garage and lot prices lower than employee RPP pricing as well as the longer distance between portions of Zone D and El Camino Real.

In order to account for actual demand, staff propose a number of changes, including redrawing Zones A-D (as seen in the Figure 2) to better accommodate ECR businesses where parking is still needed for employees, and to continue to distribute and limit parking impact to residential parking availability. Specific changes which account for both employee parking and business visitor usage as well as ambient resident parking include:
Reassignment of areas further from El Camino Real to an expanded Zone D; Reassignment of a portion of Park Blvd from Zone B to Zone A; Reduction in the number of employee permits in Zone A; Reassignment of select block segments immediately adjacent to ECR to provide 2 hour commercial parking
Increase in the number of employee permits in A-D to 65 total. 7 SR#2407-3203
https://cityofpaloalto.primegov.com/api/compilemeetingattachmenthistory/historyattachment/?historyId=f831f6 4c-80c0-41f8-bedf-9b0d74aced0e

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Figure 2: Recommended Evergreen Park - Mayfield Parking Zones (Note the expansion of Zones D and A, and the removal of short block segments adjacent to El Camino Real added as 2-Hour Commercial Zones.)
City staff will continue to measure and evaluate the levels of use throughout the year, including counting available parking spaces on each block face to measure activity levels at various times of the day. These activity levels will be cross-referenced against prior activity counts in order to refine the distribution of employee permits to each zone.

FISCAL/RESOURCE IMPACT
This specific action will not incur a significant fiscal impact. The ability to release additional permits and the expanded Zone D may translate into a small number of additional permit sales, while the enforcement area will remain unchanged. This increase in permit availability could entail additional sales possible of 15 x $715 = $10,725 additional potential revenue. Citation revenue would not be expected to change. The Office of Transportation will monitor permit sales and revenue collections in FY 2026 and bring forward any budget adjustment recommendations related to revenue updates as part of the FY 2027 budget development process.

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STAKEHOLDER ENGAGEMENT
City staff held virtual engagement events via Zoom on June 10, 2025, and June 11, 2025. In order raise awareness of these engagement opportunities, staff sent email to all EPM RPP participants including both resident and employee customers, in addition to other businesses in the area that were impacted by the repurposing of parking lanes on El Camino Real. Six people attended the events.

A number of residents of EPM RPP zones indicated that they did not support any of the proposed measures due to concerns about potentially increasing in the business and daytime occupancy of neighborhood parking resources. Employee and business customers also expressed concern regarding availability of on-street parking supply. The recommended actions attempt to balance these competing interests for finite curb space availability. A resident also suggested distributing some of the employee permits to the Southgate RPP district; staff reviewed and determined this would be less effective than the recommendation.

Staff will continue to meet with affected businesses and residents through the remaining calendar year, will assess the effects of the recommended actions on parking availability in each neighborhood block with additional counts, and will conduct further outreach before any additional adjustments are determined.

ENVIRONMENTAL REVIEW
The attached resolution is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen with certainty that there is no possibility the adoption and implementation of this resolution may have a significant impact on the environment and Section 15301 in that this proposed resolution will have a minor impact on existing facilities.

ATTACHMENTS
Attachment A: Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10185, Continuing the Evergreen Park-Mayfield Residential Preferential Parking District (RPP) Program to Increase the Number of Employee Permits, Amend the Zone Boundaries, and Add 2-Hour Parking Zones Adjacent to El Camino Real APPROVED BY:

Ria Hutabarat Lo, Chief Transportation Official
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Resolution No. ____
Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10185, Continuing the Evergreen Park-Mayfield Residential Preferential Parking District (RPP) Program to Increase the Number of Employee Permits, Amending the Zones, and Creating 2-Hour Parking Adjacent to El Camino Real

R E C I T A L S

A. California Vehicle Code Section 22507 authorizes the establis hment, by city council action, of permit parking programs in residential neighborhoods for residents and other categories of parkers.

B. On December 15, 2014, the Council adopted Ordinance No. 5294, adding Chapter

10.50 to Title 10 (Vehicles and Traffic) of the Palo Alto Municipal Code, which established the city-wide procedures for (RPP) Districts in the city.

C. On May 9, 2016, the City Council directed C ity staff to implement a Residential Preferential Parking program in the Evergreen Park-Mayfield area.

D. In July 2016, a stakeholders’ group comprised of Evergreen Park residents and business interests met two times and made its recommendations to the City on the particular rules to be applied to the Evergreen Park-Mayfield RPP District.

E. On December 14, 2016, the Planning and Transportation Commission held a public hearing to consider the proposed Evergreen Park -Mayfield residential preferential parking program.

F. On January 23, 2017, the Council adopted Resolution No. 9663, which established the Evergreen Park -Mayfield Residential Preferential Parking Program pilot and rescinded existing parking restrictions that conflicted with the restrictions established by this RPP district.

G. In October and November 2017, the City conducted a parking occupancy study in the Evergreen Park -Mayfield Residential Preferential Parking Program District and met with residents and stakeholders to receive program feedback. The study found occupancies below 60% in Employee Parking Zones A and B, with areas of higher occupancy closer to businesses. In addition, some businesses were unable to receive Employee Parking Permits under the current limits.

H. It is the goal of the City to reduce the impacts of non -resident overflow parking from the commercial areas on the surrounding neighborhoods.

Item 7
Attachment A - Resolution
of the Council of the City of
Palo Alto Amending and
Restating Resolution 10185

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I. On February 5, 2018, t he Council adopted Resolution 9739, which continued the Evergreen Park-Mayfield Residential Preferential Parking Program as an ongoing program w ith modifications to address issues identified in the pilot.

J. On November 1, 2021, the City Council adopted Resolution 9997 to eliminate employee parking permits in certain zones, allow the use of virtual permits, and update outdated procedures.

K. On August 12, 2024, the City Council adopted Resolution 10185 to remove El Camino Real from th is RPP district due to Caltrans’ elimination of parking spaces on El Camino Real upon the installation of bike lanes.

L. The City Council now desires to continue amend and restate Resolution 10185 to increase the number of employee permits available, to amend the zone map, and add 2 -hour commercial parking to certain streets perpendicular to El Camino Real.

NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES, as follows:

SECTION 1. Findings. The criteria set forth in Section 10.50.030 of the Palo Alto Municipal Code for designating a Residential Preferential Permit Zone have been met as follows:

A. That non-resident vehicles do, or may, substantially interfere with the use of on-street or alley parking spaces by neighborhood residents in that based on observation there are few available parking spaces available midday, while the streets are relatively unoccupied at midnight thus demonstrating the parking intrusion is largely by nonresidents.

B. That the interference by the non- resident vehicles occurs at regular and frequent intervals, either daily or weekly, in that the parking intrusion is most severe during daytime hours during the regular workweek.

C. That the non-resident vehicles parked in the area of the District create traffic congestion, noise, or other disruption (including shortage of parking spaces for residents and their visitors) that disrupts neighborhood life in that based on information from residents and other city departments the vehicle congestion is interfering with regular activities.

D. Other alternative parking strategies are not feasible or practical in that the City has implemented a series of alternative parking strategies in the past and concurrently and there is still a shortage of parking available.

SECTION 2. Definitions.

A. “Dwelling Unit” shall have the same meaning as it is defined in Palo Alto Municipal Code Section 10.50.020.

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Attachment A - Resolution
of the Council of the City of
Palo Alto Amending and
Restating Resolution 10185

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B. “Evergreen Park-Mayfield Residential Preferential Parking Program District” or “District” shall be that area as shown in Exhibit A to this Resolution.

C. “Parking Zones” shall be those areas within the District as shown in Exhibit A to this Resolution.

SECTION 3. Parking Restrictions within the District.

A. Two-hour Parking Limit and No Re-parking. In the areas within the District listed in Table 1, no person shall park a vehicle adjacent to any curb for more than two hours. Re - parking a vehicle more than two hours after initially parking on the same day in the same Parking Zone is prohibited. Th ese restrictions shall be in effect Monday through Friday from 8:00 AM to 6:00 PM, except holidays as defined in Palo Alto Municipal Code Section

2.08.100. Vehicles properly displaying a valid Parking Permit as described in Section 4 of this Resolution are exempt from these restrictions.

TABLE 1

STREET BLOCKS
Park Blvd. 1700, 1800, 1900, 2000, 2100, 2200 -
2211, 2555-2599, 2600
Park Ave. 100 (excluding the portion between El
Camino Real and the existing bollard)
Leland Ave. 200, 300, 400 (excluding the portion
between El Camino Real and the
existing bollard)
Stanford Ave. 200, 300, 400 (excluding the portion
extending from El Camino Real to the
second driveway on each side of
Stanford Ave.)
Oxford Ave. 200, 300, 400 (excluding the portion
between El Camino Real and the
existing bollard)
College Ave. 200, 300, 400
Birch Ave. 1800, 1900, 2000, 2100, 2200-2288,
2518-2575, 2600
Ash St. 1800, 1900, 2000, 2100, 2502 -2599,
2600, 2700
Grant St. 100, 200, 300, 400
Sheridan Ave. 200, 300, 400

B. Exempt vehicles. Vehicles exempt from parking restrictions as described in Palo Alto Municipal Code Section 10.50.070(d) are exempt from the restrictions in this section.

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Attachment A - Resolution
of the Council of the City of
Palo Alto Amending and
Restating Resolution 10185

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SECTION 4. Parking Permits.

A. Employee Parking Permits. The City may issue Employee Parking Permits for use by employees working in the District. Employee Parking Permits shall be subject to the following regulations:
a. Duration. Employee Parking Permits shall be available in the form of monthly and/or six-month permits (as determined by the Chief Transportation Official).

b. Form of Permit. The City may issue Employee Parking Permits in any form it deems practicable.

c. Commuting Only . Employee Parking Permits are valid only when used by employees who are working within the District on the day the permit is used.

d. Zones. Employee Parking Permits shall be specific to one of the Parking Zones as specified in Exhibit A and shall entitle the permit holder to park only in the Parking Zone designated on the Employee Parking Permit.

e. Maximum Number of Permits Issued. A maximum of 50 Employee Parking Permits shall be granted at any given time to employees who work within the Evergreen Park-Mayfield Residential Preferential Parking District. An additional 15 Employee Parking Permits shall be held in reserve, and may be released for sale, in whole or in part, upon approval of the Chief Transportation Official, in accordance with this subsection e.

f. Daily Employee Parking Permits . Daily Employee Parking Permits shall not be issued beginning January 1, 2022.

B. Resident Parking Permits . The City may issue Resident Parking Permits to residents of dwelling units within the District. Resident Parking Permits shall be subject to the following regulations:
a. Duration. Resident Parking Permits shall be available in the form of annual permits and one-day permits.

b. Form of Permit. The City may issue Resident Parking Permits in any form it deems practicable, including stickers, hangtags, and/or virtual permits.

c. Zones. Resident Parking Permits shall not be restricted to a specific Parking Zone.

Resident Parking Permits shall be valid only in the areas listed in Table 1.

d. Maximum Number of Permits per Dwelling Unit . Each dwelling unit within the District shall be limited to five Annual Resident Parking Permits at any given time.

These permits may be used by residents or guests within the District.

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Palo Alto Amending and
Restating Resolution 10185

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e. Daily Resident Parking Permits . Each dwelling unit shall be limited to 50 Daily Resident Parking Permits annually. These permits may be in the form of scratcher hangtags, an online issuance system, or such other form as the City determines.

Physical permits will state the date through which it is valid.

SECTION 5. Parking Permit Fees. The fee for Parking Permits in the District shall be set by the City’s Municipal Fee Schedule.

SECTION 6. Other Parking Restrictions.

A. Section 2 of Resolution 4051 is repealed and replaced with the restrictions in this Resolution.

B. 2 Hour Parking (Existing). The 2 Hour Commercial Area parking restrictions as identified in Exhibit A shall remain in effect.

C. 2 Hour Parking (New) . This Resolution establishes new 2 Hour Commercial Area parking restrictions along portions of streets that are perpendicular to El Camino Real as described in Table 2 below. In these areas, no person shall park a vehicle adjacent to any curb for more than two hours. Re-parking a vehicle more than two hours after initially parking on the same day is prohibited. These restrictions shall be in effect Monday through Friday from 8:00 AM to 5:00 PM, except holidays as defined in Palo Alto Municipal Code Section

2.08.100. RPP permits are not valid in these areas.

Table 2
Street Portion of Street Subject to 2 -Hour
Parking
Park Ave. The portion between El Camino Real
and the existing bollard at Ash St.

Leland Ave. The portion between El Camino Real
and the existing bollard.

Stanford Ave. The portion extending from El Camino
Real to the second driveway on each
side of Stanford Ave.

Oxford Ave. The portion between El Camino Real
and the existing bollard.

D. Conflicting Restrictions. In the event the City should, at a later time, discover conflicting parking restrictions within the District that conflict with the restrictions of this resolution, but are not expressly rescinded, the RPP restrictions of this resolution shall control.

However, existing parking restrictions indicated by painted curbs and implemented pursuant to Vehicle Code section 21458 are not superseded by this Resolution and remain in effect.

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Attachment A - Resolution
of the Council of the City of
Palo Alto Amending and
Restating Resolution 10185

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SECTION 7. Supersede. To the extent any of the provisions of this Resolution are inconsistent with the regulations set forth in Resolution 10185, this Resolution shall control.

SECTION 8. CEQA. This R esolution is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen with certainty that there is no possibility the adoption and implementation of this resolution may have a significant effect on the environment and Section 15301 in that this proposed resolution will have a minor impact on existing facilities.

SECTION 9. Effective Date. This Resolution shall take effect upon adoption.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

__________________________ __________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

_______________________ ___________________________
Assistant City Attorney City Manager

___________________________
Chief Transportation Official

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Attachment A - Resolution
of the Council of the City of
Palo Alto Amending and
Restating Resolution 10185

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Exhibit A

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Attachment A - Resolution
of the Council of the City of
Palo Alto Amending and
Restating Resolution 10185

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City Council
Staff Report
From: City Manager
City Clerk
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: August 11, 2025
Report #:2505-4677
TITLE
Adopt a Council Chambers Use Policy as recommended by the Policy and Services Committee and Adopt an Ordinance Adding Use of Council Chambers Fees to the FY 2026 Municipal Fee Schedule; CEQA status -Not a project

RECOMMENDATION
The Policy and Services Committee recommends that the City Council adopt the attached Council Chambers Use Policy. In addition, staff recommends that the City Council adopt an ordinance to add fees to the FY 2026 Municipal Fee Schedule for the Use of Council Chambers.

EXECUTIVE SUMMARY
The proposed Council Chambers Use Policy establishes clear guidelines for the use of the Council Chambers, Community Meeting Room, and Flexible Meeting Room. It ensures these spaces are used primarily for official City and government-related functions, sets clear request procedures, and reserves City resources by minimizing liability and operational risks. This policy also includes a Priority 3 category for organizations with City co-sponsorship and adopts fees to help offset potential costs to the City.

BACKGROUND
On May 13, 2025, staff presented a draft Council Chambers Use Policy to the Policy and Services Committee to address requests from local community-serving organizations and government agencies to use the Chambers for meetings and events. A formal policy will facilitate consistency and transparency in evaluating requests for use. The proposed policy prioritizes official City and government-related functions and provides community access where the City is a co-sponsor. It aims to establish clear and consistent guidelines for reserving and using the Council Chambers, Community Meeting Room and Flexible Meeting Room. Policy and Services Committee recommended the inclusion of organizations co-sponsored by the City as Priority 3 users, along with recommended fees and requirements to safeguard City resources, staff time, and facility conditions.

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ANALYSIS
The recommended policy reflects the input provided by the Policy and Services Committee and is informed by the best practices previously established by the City. It ensures that the Council Chambers continue to serve its primary function as a space for official government use, while also providing a structure and equitable process for allowing limited use by City co-sponsored events.

The Council Chambers, the Community Meeting Room, and Flexible Meeting Room are civic assets intended primarily for official government use, including meetings of the City Council, its Committees, Boards, and Commissions, and City staff. The new policy also allows limited access for other governmental agencies and organizations co-sponsored by the City in accordance with the City’s Co-Sponsorship Policy1 to host public events, under specific conditions. This policy establishes clear eligibility criteria, conditions of use, and request procedures. It also protects the City from liability and provides a consistent, transparent process for non-City users.

To preserve the facilities’ primary role in supporting City governance while allowing for limited external use, the policy outlines three (3) tiers of priority:
Priority 1: City Council; meetings of Council Committees, Boards, and Commissions; official use by City departments; and legislative bodies where a Councilmember has a seat.
Priority 2: Meetings and events hosted by other government agencies. These uses are secondary to official City functions.
Priority 3: Meetings and events organized by organizations that have obtained formal City co-sponsorship. These events must be free and open to the public. No solicitation is permitted, and all conditions of co-sponsorship must be followed.

Use Limitations and Conditions
The Council Chambers remain a dedicated space for official City use and must always be available for emergency or special City Council meetings. All external users must acknowledge that reservations are subject to last-minute cancellation if required for City businesses. The following areas are not available for public use: Kitchen facilities, City Council Conference Room, and City media and A/V production spaces (except under approved conditions with staff available to monitor).

Request Procedures
All requests for use must be submitted to the City Clerk’s Office no later than 30 days before the event/meeting date and no earlier than 6 months in advance. An Agreement of Use is required for all Priority 2 and Priority 3 users. Final scheduling decisions rest with the City Clerk, 1 Co-Sponsorship Policy, 2016; https://www.paloalto.gov/files/assets/public/v/1/community-services/facility- rentals/reservations-community-centers-fields/city-of-palo-alto-co-sponsorship-policy-final.pdf Item 8
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who ensures alignment with the City’s operational priorities. If an organizer must cancel their event, written notice must be provided at least 10 days in advance. Cancellations submitted less than 7 days prior will result in forfeiture of the deposit to cover administrative costs.

Deposit and Fee Structure
Priority 2 and 3 users are subject to a refundable $250 deposit, which reserves the space and covers potential costs related to cleaning, damages, or policy violations. If the facility is left in good condition, the event ends on time, and all policies are followed, the full deposit will be refunded after a post-event inspection. Additionally, at the discretion of the City Clerk, an attendant fee of $49 per hour may be applied if City staff are required to be present during the event. This determination may be based on the size, nature, or complexity of the event. The attendant fee may also be deducted from the deposit.

Technology support and equipment are reserved primarily for City functions. A technology support fee starting at $100 per hour would apply when technology is used by approved external groups where City staff is required to supervise equipment use to prevent damage and ensure continued availability for official meetings. These fees were costed to reflect the average hourly rate of a Senior Technologist rounded up to account for the high value of the equipment used for essential government operations, as well as the needed for immediate functionality and timely replacement in the event of damage/operation failure.

Security and Risk Management
At the City Clerk’s discretion, some events may require a security plan and the hiring of a licensed and insured private security firm. Security personnel must be unarmed, and an emergency preparedness plan must be submitted in advance. The event organizer is responsible for managing attendee behavior and de-escalating disruptions. If disruptions continue, City staff reserve the right to terminate the event. The Palo Alto Police Department will respond, as appropriate, to reported criminal activity. The City does not provide police officers or staff for on-site event security.

For events expecting 100 or more participants, organizers must provide proof of liability insurance. This standard risk management practice protects both the event host and the city.

And as recommended by the Policy and Services Committee, the City also retains the ability to terminate any event that becomes disorderly, disruptive, or otherwise violates the Municipal Code, the Chambers Use Policy, the rules established by the City Clerk, or that poses an imminent threat to public health or safety.

FISCAL/RESOURCE IMPACT
The adoption of the Council Chambers Use Policy will have both fiscal and resource implications, with an increase in staff time and administrative costs, depending on room usage.

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and work overtime to ensure the facility is in acceptable condition and secured at the end of the event. While the exclusion of kitchen facilities and event equipment limits excessive wear, ongoing maintenance of the space will still be required. The impact on cleaning, utilities, and general janitorial upkeep will depend on the frequency of use. This policy does not include a rental fee for use of the spaces, but recommends a $49 per hour/staff fee when additional staff support is needed. For events requiring A/V system use, a separate IT support fee of $100 per hour applies. The application of the fees will be at the City Clerk’s discretion. The administrative workload will include evaluating requests, scheduling, coordinating logistics with the requester, policy enforcement, depositing refunds, and staff presence when needed. Attachment C amends the FY 2026 municipal fee ordinance to include these fees as part of the schedule.

STAKEHOLDER ENGAGEMENT
Staff collaborated with multiple City departments to create a policy that is comprehensive, operationally feasible, aligned with the City’s purpose of the space, and comparable to the request policies of other reservable City facilities. Staff discussed request procedures, advised on managing administrative workload, and provided guidance on public meeting requirements.

Staff assessed potential liability risks and reviewed the security deposit structure. Additionally, staff were advised on necessary waivers and public forum considerations. The Policy & Services Committee provided feedback on the draft policy at its May 13, 2025 meeting3.

ATTACHMENTS
Attachment A – Council Chambers Use Policy
Attachment B – Council Chambers Use Request and Use Agreement Attachment C – Ordinance Amending the FY 2026 Municipal Fee Schedule APPROVED BY:

Mahealani Ah Yun, City Clerk
3 May 13, 2025 Policy and Services Committee Meeting, Item 4; link:
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Council Chambers Use Policy Page 1 of 5 Revision Date: 5/24/24

City of Palo Alto, Office of the City Clerk – 250 Hamilton Av. (Seventh Floor), Palo Alto, CA 94301 – (650) 329-2571

CITY CLERK’S OFFICE PROCEDURES
Council Chambers Use Policy

Section 1. OVERVIEW

• Purpose
• Authority
• Use
• Requests
• Liability/Insurance
• Fees
• Accommodations
• User Responsibilities

Section 2. AUTHORITY

Palo Alto Municipal Code Sections 2.04.120 through 2.04.150 govern the use of Council Chambers, including the enforcement of decorum during Council meetings, the permitted consumption of food and beverages, and the authorized personnel in the council and staff areas during Council meetings.

Further, Palo Alto Municipal Code Section 2.08.075 requires council appointed officers to be responsible for the care and safekeeping of all city-owned property used by or in the custody of the department and to take steps as necessary to ensure that the use or condition of said property does not incur legal liability or loss for the city or its officers and employees.

Finally, Palo Alto Municipal Code Section 2.08.110 requires the City Clerk to perform such other duties as the council may require.

Section 3. PURPOSE

To preserve the functions that City Hall is designed to serve, provide for the orderly use of City facilities, and coordinate multiple users, this policy establishes procedures, requirements, and user responsibilities for the use of the City Council Chambers , including the Community Meeting Room, and Flex Room . Council Chambers is not available for general use by the public. Council Chambers are primarily for official City business but may be available, from time to time, to other government agencies, and organizations receiving Item 8
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Chambers Use Policy

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Council Chambers Use Policy Page 2 of 5 Revision Date: 5/24/24

City of Palo Alto, Office of the City Clerk – 250 Hamilton Av. (Seventh Floor), Palo Alto, CA 94301 – (650) 329-2571 City support in accordance with the City’s Co-Sponsorship Policy, as may be amended. The Council Chambers may only be used in accordance with the Municipal Code and this Policy.

Section 4. USE

Use of Council Chambers is prioritized as follows:

• Priority 1: Public meetings of bodies on which the City Council sit, Council Committees, Boards and Commissions, and use by City staff.

• Priority 2: Meetings or Events organized by other government agencies.

• Priority 3: City sponsored events and meetings of organizations sponsored by the City in accordance with the City Co -Sponsorship Policy . Events must be free and open to the public. A refundable security deposit in an amount determined by the City Clerk is required.

City staff will be present to assist with facility use but will not perform event-related tasks. Events that occur outside of regular City Hall hours may require additional City staffing, at the event organizer’s cost.

Security may be required, and the user must hire a licensed, insured security firm approved by the City and provide proof of the event security plan.

Section 5. REQUESTS

The City Clerk will establish the dates and times in which requests will be accepted.

All requests to use the Council Chambers must be submitted in writing to the City Clerk’s Office at [email protected], including the City Co-Sponsorship application, and an IRS 501(c)(3) status letter, if applicable. The City Clerk will determine whether the applicant meets standards for co- sponsorship status and what benefit level is applicable. This decision made be appealed in accordance with the City Co-Sponsorship Policy.

• Use times must account for both set-up and clean-up.
• Requests may be submitted up to six (6) months in advance but no later than 30 days prior to the event.
• The City reserves the right to cancel requests on short notice where necessary to accommodate emergency or special City meetings or other urgent City business . If the City cancels a request , City staff will attempt to help reschedule.
• Cancelations must be submitted in writing at least 10 days prior before the event; cancelations with less than seven days’ notice will result in forfeiture of the security deposit.

In no event will the City be liable for any cancellation.

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Council Chambers Use Policy Page 3 of 5 Revision Date: 5/24/24

City of Palo Alto, Office of the City Clerk – 250 Hamilton Av. (Seventh Floor), Palo Alto, CA 94301 – (650) 329-2571

Section 6. LIABILITY/INSURANCE

General liability insurance is required for events with 1 00 or more participants. Proof of coverage must be submitted 14 days before the event; failure to do so will result in cancellation of the request and forfeiture of the deposit.

Insurance Requirements:

1. Minimum coverage of $1,000,000 for bodily injury and property damage is required.

2. Include “ The City of Palo Alto , its Council members, officers, agents, and “employees” as additional insureds.

3. List the following as the Certificate Holder:
o City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301

4. Send the Certificate of Insurance to [email protected] or mail it to the Office of the City Clerk at the address above.

The requirements above apply to security providers, and any other vendor hired by User.

Users of the City Council Chambers will be required to submit a signed Facility Use Application with the City Clerk and be subject to its terms.

Section 7. FEES

Deposit
A refundable security deposit of $250 is required for all Priority 2 and 3 requests and is due at the time the request is made to the City Clerk . An assessment of the facility will be conducted within 24 hours after the event and the applicant will be informed of the condition. T he security deposit will be refunded after 14 days via check. Refunds of the security deposit may be fully or partially withheld for any of the following reasons:
• Damages to the facility
• Missing or Damages to equipment
• Additional Janitorial Services needed
• Additional staff time needed

Attendant Fee
It is at the discretion of the City Clerk to determine if requests for facility use will require City staff to be present during the event. An hourly attendant fee and/or an overtime fee per staff member may be applied for events that are after hours or during the holidays. This determination will be based on the size, nature, and/or complexity of the event. The amount of the fee will be established by City Council resolution and is non-refundable.

Technology Support Fee
It is at the discretion of the City Clerk to determine if technology support is required to be approved for the Item 8
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Council Chambers Use Policy Page 4 of 5 Revision Date: 5/24/24

City of Palo Alto, Office of the City Clerk – 250 Hamilton Av. (Seventh Floor), Palo Alto, CA 94301 – (650) 329-2571 usage of the Audio and Visual equipment. City staff will be present primarily to supervise the use of the equipment. The amount of the fee will be established by City Council resolution and is non-refundable.

Section 8. ACCOMMODATIONS

The Council Chambers has a maximum occupancy of 281 and requests must not exceed this limit. Seating is in a theater style, and no additional chairs or tables will be provided. Users are welcome to bring their own event supplies.

IT/AV system is available. Use must be requested at booking to ensure staff availability . Users are encouraged to schedule a walkthrough with City staff prior to their event time.

Special accommodations needed for guests will be under the sole responsibility of the user.

The following are not permitted in Council Chambers:
• Consuming food and beverages (PAMC 2.04.140)
• Open flames
• Pets (excepting service animals)
• Smoking and the use of electronic smoking devices inside and within 25 feet of entrances (PAMC

9.14.020)
• Any type of drug use

The City Clerk may establish additional rules and regulations for the use of the Council Chambers, as may be needed.

Section 9. USER RESPONSIBILITIES

9.1 Conduct
The user is responsible for all accidents, injuries, damages, and repair costs during their use of the Council Chambers. Access is limited to reserved times and all participants must leave by the scheduled end time.

The user must ensure all participants follow City rules, maintain safety, and prevent misconduct or damage.

The user or authorized representative must be present during the event and will be the direct contact.

Facility use is limited to the Council Chambers, Community Meeting Room, and Flex Conference Room only.

Use of Council Conference Room and Media Space is restricted. No one may block entrances, exits, or aisles or create safety hazards.

9.2 Noise
Event noise must not exceed 15 dB above ambient levels when measured 25 feet from the Council Chambers (PAMC 9.10.050). Noise must not disrupt City business . Loud noise must end by 11:00 p.m. on Friday and Saturdays and by 9:00 p.m., Sunday through Thursday.

9.3 Decorations & Clean-Up
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Council Chambers Use Policy Page 5 of 5 Revision Date: 5/24/24

City of Palo Alto, Office of the City Clerk – 250 Hamilton Av. (Seventh Floor), Palo Alto, CA 94301 – (650) 329-2571 Storage is not allowed before or after the event. Set -up begins at the designated start time and the space must be cleared by the end time. Only painter’s tape may be used for decorations; all other adhesives and fasteners are prohibited. Users must restore the facility to its original condition, remove all items and trash, and handle cleanup without City staff assistance. The City is not responsible for any items left behind and any cleanup costs or damages will be deducted from the deposit and/or billed to the user.

9.4 Event Shutdown
The City reserves the right to terminate any event that becomes disorderly, disruptive, or otherwise violates the Municipal Code, this Policy, the rules established by the City Clerk, or that poses an imminent threat to public health or safety
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Address
Last Name
First Name
Email Address
Phone Number
City, State, Zip Code
Name and Description of Event
Expected Attendance:

Address
Email Address
Phone Number
Organization Name
City, State, Zip Code
501(c)3 Non-Profit:

IRS Non-Profit Number:

Responsible Person Day of Event
If Yes, list Department Name & Contact:

List of AV Equipment Needed *
Cell #
No Yes
Applicant's
Signature: Date:

Terms of Agreement
On behalf of the organization and myself, I have read and understand the facility use agreement. I agree to inform persons participating in this proposed activity of the terms and conditions of this agreement, and agree to comply with the conditions set forth herein. I understand that I am responsible for the actions and behavior of my guests, and I assume responsibility for any damages or extra fees that might be incurred due to my guests’ actions or behavior. I further agree to hold harmless and indemnify the City of Palo Alto, its officials, officers, employees and agent for any liability, loss or damage due to personal injury, death or property damage caused by or resulting from activities permitted by this use agreement, excepting that which is caused solely by the negligence, recklessness or willful misconduct of the City, its officials, officers, employees or agent. I have also read and reviewed the conditions on the back of this form.

Council Chambers Use Request and Use Agreement
Questions?
Email [email protected]
Event Co-Sponsored by City of Palo Alto
Use Date
Start Time
EndTime
No Yes
*Users are encouraged to bring their own audio/visual equipment.

City-owned A/V equipment may not be used without prior
authorization and proper supervision. Users may be charged a fee if City staff is needed to operate the A/V system, including speakers, microphones, cameras, etc.

Required ConfirmedInsurance

OFFICE USE ONLY
Required ConfirmedSecurity
Approved DeniedApplication
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Chambers Use Request and
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Conditions:

The Council Chambers Use Policy, as may be amended, is incorporated hereinby reference and made part of this Facility Use Agreement as if fully set forthherein.

All capacity limits must be adhered to and are set by the Fire Marshal.

USEUse of Council Chambers is prioritized as follows:
• Priority 1: Public meetings of bodies on which the City Council sit, CouncilCommittees, Boards and Commissions, and use by City staff. • Priority 2: Meetings or Events organized by other government agencies. • Priority 3: City sponsored events and meetings of organizations sponsored bythe City in accordance with the City Co-Sponsorship Policy. Events must befree and open to the public. A refundable security deposit in an amountdetermined by the City Clerk is required.

City staff will be present to assist with facility use but will not perform event-related tasks. Events that occur outside of regular City Hall hours may requireadditional City staffing, at the event organizer’s cost. Security may be required, and the user must hire a licensed, insured securityfirm approved by the City and provide proof of the event security plan.

REQUESTSThe City Clerk will establish the dates and times in which requests will beaccepted.

All requests to use the Council Chambers must be submitted in writing to theCity Clerk’s Office at [email protected], including the City Co-Sponsorship application, and an IRS 501(c)(3) status letter, if applicable. TheCity Clerk will determine whether the applicant meets standards for co ‐sponsorship status and what benefit level is applicable. This decision made beappealed in accordance with the City Co-Sponsorship Policy. • Use times must account for both set-up and clean-up. • Requests may be submitted up to six (6) months in advance but no later than30 days prior to the event. • The City reserves the right to cancel requests on short notice where necessaryto accommodate emergency or special City meetings or other urgent Citybusiness. If the City cancels a request, City staff will attempt to helpreschedule.• Cancelations must be submitted in writing at least 10 days prior before theevent; cancelations with less than seven days’ notice will result in forfeiture ofthe security deposit.

In no event will the City be liable for any cancellation.

LIABILITY/INSURANCEGeneral liability insurance is required for events with 100 or more participants.Proof of coverage must be submitted 14 days before the event; failure to do sowill result in cancellation of the request and forfeiture of the deposit.

Insurance Requirements:1.Minimum coverage of $1,000,000 for bodily injury and property damage isrequired.2.Include “The City of Palo Alto, its Council members, officers, agents, and“employees” as additional insureds. 3.List the following as the Certificate Holder:oCity of Palo Alto250 Hamilton AvenuePalo Alto, CA 943014.Send the Certificate of Insurance to [email protected] or mail it to theOffice of the City Clerk at the address above.

The requirements above apply to security providers, and any other vendorhired by User.

Users of the City Council Chambers will be required to submit a signed FacilityUse Application with the City Clerk and be subject to its terms.

FEES
DepositA refundable security deposit of $250 is required for all Priority 2 and 3requests and is due at the time the request is made to the City Clerk. Anassessment of the facility will be conducted within 24 hours after the eventand the applicant will be informed of the condition. The security deposit willbe refunded after 14 days via check. Refunds of the security deposit may befully or partially withheld for any of the following reasons:· Damages to the facility · Missing or Damages to equipment· Additional Janitorial Services needed· Additional staff time needed Attendant FeeIt is at the discretion of the City Clerk to determine if requests for facilityuse will require City staff to be present during the event. An hourlyattendant fee and/or an overtime fee per staff member may be applied forevents that are after hours or during the holidays. This determination will bebased on the size, nature, and/or complexity of the event. The amount of thefee will be established by City Council resolution and is non-refundable.

Technology Support FeeIt is at the discretion of the City Clerk to determine if technology support isrequired to be approved for the usage of the Audio and Visual equipment.City staff will be present primarily to supervise the use of the equipment.The fee amount of the fee will be established by City Council resolution andis non-refundable.

Special accommodations needed for guests will be under the soleresponsibility of the user.

The following are not permitted in Council Chambers:• Consuming food and beverages (PAMC 2.04.140)• Open flames• Pets (excepting service animals)• Smoking and the use of electronic smoking devices inside and within 25feet of entrances (PAMC 9.14.020)• Any type of drug use The City Clerk may establish additional rules and regulations for the use ofthe Council Chambers, as may be needed.

ConductThe user is responsible for all accidents, injuries, damages, and repair costsduring their use of the Council Chambers. Access is limited to reserved timesand all participants must leave by the scheduled end time. The user must ensure all participants follow City rules, maintain safety, andprevent misconduct or damage. The user or authorized representative mustbe present during the event and will be the direct contact.

Facility use is limited to the Council Chambers, Community Meeting Room,and Flex Conference Room only. Use of Council Conference Room and MediaSpace is restricted. No one may block entrances, exits, or aisles or createsafety hazards.

Noise:Event noise must not exceed 15 dB above ambient levels when measured 25feet from the Council Chambers (PAMC 9.10.050). Noise must not disruptCity business. Loud noise must end by 11:00 p.m. on Friday and Saturdaysand by 9:00 p.m., Sunday through Thursday.

Decorations:Storage is not allowed before or after the event. Set-up begins at thedesignated start time and the space must be cleared by the end time. Onlypainter’s tape may be used for decorations; all other adhesives and fastenersare prohibited. Users must restore the facility to its original condition,remove all items and trash, and handle cleanup without City staffassistance. The City is not responsible for any items left behind and anycleanup costs or damages will be deducted from the deposit and/or billed tothe user.

Event Shutdown:The City reserves the right to terminate any event that becomes disorderly,disruptive, or otherwise violates the Municipal Code, this Policy, the rulesestablished by the City Clerk, or that poses an imminent threat to publichealth or safety Item 8
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*NOT YET APPROVED*
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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending the Fiscal Year 2026 Municipal Fee Schedule to Add New Fees for the Use of the Council Chambers The Council of the City of Palo Alto ORDAINS as follows:

SECTION 1. Findings and Declarations. The City Council finds and declares as follows:

A. The City adopted a Council Chamber Use Policy to establish clear guidelines for the use of the Council Chambers, Community Meeting Room, and Flexible Meeting Room (“Council Chambers”). The City will assess a Refundable Cleaning and Damage Deposit of $250.00.

B. In addition, users of the Council Chambers may require staff assistance. If so, a $49 attendant fee and a technology assistance fee of $100 per hour per staff member will be charged.

C. The fees in this ordinance will help offset the reasonable cost of using City staff.

SECTION 2. The Council of the City of Palo Alto amends the Fiscal Year 2026 Municipal Fee Schedule by adopting the new fees for the Use of Council Chambers as set forth in Exhibit “A” and incorporated here by reference.

SECTION 3. The fee in this Ordinance is for a specific government service provided directly to the payor that is not provided to those not charged and which does not exceed the reasonable costs to the local government of providing the service or product. Pursuant to Art. XIII C, Section 1(e)(2) of the California Constitution, this fee is not a tax.

SECTION 4. The Council finds that this ordinance is not a “project” under CEQA because it has no potential for resulting in either a direct or reasonable foreseeable indirect change in the environment.
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Amending the FY 2026
Muni Fee Schedule to Add
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SECTION 5. This ordinance shall be effective upon adoption as an amendment to the City’s FY26 budget.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
City Clerk
____________________________
Director of Administrative
Services
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Amending the FY 2026
Muni Fee Schedule to Add
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Attachment A
Fiscal Year 2026 Municipal Fee Schedule
City Clerk Fees
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Amending the FY 2026
Muni Fee Schedule to Add
New Fee

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: August 11, 2025
Report #:2505-4688
TITLE
Approval of Five (5) On-Call Consulting Contracts to Provide Long Term Planning Policy Development support for the Planning and Development Services over a Five-Year Term, as needed: 1) Aaron Welch Planning, 2) Ascent Environmental, Inc. 3) Lexington Planning LLC, 4) PlaceWorks, Inc., 5) Raimi & Associates Inc. in an amount not to exceed $2,000,000; CEQA Status: Not a Project.

RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their designee to execute Contract No. C25193458, C25193458A – C25193458D (Attachments A-E) for consulting services in an amount not to exceed $2,000,000 through June 2030. The firms will provide on-call support associated with long-range planning. The use of the contracts must be consistent with the funding available in the adopted budget(s). The contracts are:

1. C25193458 - Aaron Welch Planning

2. C25193458A - Ascent Environmental, Inc.

3. C25193458B - Lexington Planning LLC

4. C25193458C - PlaceWorks, Inc.

5. C25193458D - Raimi & Associates, Inc.

EXECUTIVE SUMMARY
The Planning and Development Services (PDS) Department engages consulting firms to expand technical planning capacity to support the delivery of long-range planning initiatives. Through a competitive request for proposal (RFP) process, five firms have been selected to assist for areas, such as project management, community engagement, policy research, technical analysis, and document preparation. Staff recommends City Council approval of five contracts with a combined not to exceed amount of $2,000,000 over a five-year term. The use of these contracts will be subject to available funding within the annually adopted budget.

Concurrently, the City Manager is leading an interdepartmental initiative to review and improve the City’s practices where needed in the management of consultant contracts. Outcomes from Item 9
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that effort will be incorporated into the management of these consultant services throughout the term of these contracts.

BACKGROUND
The Planning and Development Services Department relies on the use of on-call service providers for project specific expertise and application processing for development activity. In June 2020, the City Council approved eight planning services on-call contracts for a combined not-to-exceed amount of $1.5 million over a four-year period, through June 30, 2024. Although the original anticipated total not-to-exceed amount was for $5.0 million, staff requested a reduced initial amount of $1.5 million given the financial uncertainty at the time and notified Council of the need to return for additional contract authority before the end of the contract term. In April 2023, the City Council approved Amendment No. 1 which increased the not-to- exceed amount to $3.0 million. In April 2024, the City Council approved Amendment No. 2 which increased the not-to-exceed amount to $3.5 million and extended the term through June 2025.

Solicitation Process
City staff issued a Request for Proposals (RFP) on December 27, 2024, for the provision of planning on-call services.

Table 1: Summary of Request for Proposals
Proposal Description RFP 193458 Planning On-Call Services Proposed Length of Project Four years, with the possibility of two additional one-year extensions.

Request for Proposal Issued December 27, 2024
Number of Vendors Notified 3,349
Total Days to Respond to Proposal 45
Number of RFP Packages Downloaded 85
Pre-Proposal Meeting and Date N/A
Number of Company Attendees at Pre-
Proposal Meeting(s) N/A
Proposal Price Range* $175 – $335 hourly rate
Number of Companies Interviewed N/A
Final Negotiated Contract Price (Basic
Services) N/A
Public Link to Solicitation https://procurement.opengov.com/portal/palo- alto-ca/projects/138159
* For standardization purposes, the hourly billing rates for principals are listed.

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The proposals were evaluated, and 32 proposals were determined to be responsive to the criteria identified in the RFP. An evaluation committee consisting of PDS managers convened to evaluate the proposals that met the RFP criteria. Five firms were selected for long-range planning on-call support.

ANALYSIS
The City’s Comprehensive Plan, Housing Element, and related long-range policy initiatives require sustained technical capacity, engagement support, and expertise in urban planning and design. The five firms selected under the long-range planning service area will provide essential project management, community engagement, policy research, technical analysis, and document preparation to support initiatives such as Comprehensive Plan amendments, Zoning Code updates, area plans, and implementation of State housing laws. These firms were selected for their demonstrated experience in leading complex, multi-year planning processes, and their ability to facilitate community workshops and draft technical planning documents. Their qualifications support a wide range of long-range planning tasks, including renter protection policy development, analysis and testing of zoning standards, amendments to the Comprehensive Plan, visual and spatial analysis, and development of policy implementation recommendations in several subject areas based on technical expertise.

The City anticipates using these consultants to help deliver ongoing and new initiatives identified in the Department’s work plan through 2030, including furthering both Council Priorities and State required Housing Element implementation. Examples of project in the pipeline includes but are not limited to: Retail ordinance to expand retail opportunities and promote retail resiliency (Council Priority Objective ED 4) and ordinance to support innovative housing structures (Council Priority Objective IHS 51). If these contracts are not approved, the Department will be challenged in delivering on current and future initiatives as well as fulfilling mandated requirements because internal staff do not possess the full range of technical expertise necessary to support this work.

Process for Selecting On-Call Consultant
To ensure equity in distribution of work while ensuring alignment between project needs and consultant qualifications, an internal process is in place for selecting and assigning consultants specific task orders.

1. Develop Scope of Work (SOW): Staff project manager will develop a SOW that reflects the planning project requirements, including any technical needs and community engagement.

2. Solicit Proposals: Staff will contact all relevant firms via email notifying them of the request for proposals.

3. Comparison and Analysis: Staff will compare submitted proposals using the following, but not limited to, criteria to determine the best firm for the proposed task:
a. Technical Expertise
b. Relevant Experience and Past Performance on Similar Projects c. Project Cost
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d. Timeline of Service Delivery

4. Selection of Consultant: After a consultant is selected, the firm will be notified, and a task order will be issued finalizing the scope of work, budget, and schedule for delivery.

These task orders will be issued in accordance with the terms of the master agreement.

Task orders will be reviewed and signed off by the Department Director or designee to ensure an additional check and balance. This internal process will allow the Department to be effective in managing concurrent initiatives while leveraging the capabilities and technical expertise of on-call consultants.

FISCAL/RESOURCE IMPACT
Use of consultants for specific assistance is an efficient and effective use of resources, allowing the Department to quickly access needed technical skills and advance complex projects. For the Long-Range Planning program, fees collected from permits for Comprehensive Plan Implementation assist with offsetting a portion of State mandated work, such as the Housing Element. Additionally, staff actively monitor and apply for grants to help offset the cost of this work when available. Other discretionary projects as assigned by Council are funded by the General Fund through the annual budget development process and varies year to year.

The budget for these contracts is included in the PDS Department’s adopted budget. The use of consultants for planning work is contingent on (1) approved contracts with capacity to support the required scope, and (2) availability of funding in the Department’s approved budget. Staff is not requesting a budget increase. No work will be assigned to consultants under these contracts unless there is sufficient operating budget to cover the costs.

STAKEHOLDER ENGAGEMENT
Professional planners and managers in the PDS Department participated in the development of this recommendation.

ENVIRONMENTAL REVIEW
Approval of these contracts is not a project under the California Environmental Quality Act (CEQA); therefore, no environmental review is required.

ATTACHMENTS
Attachment A: C25193458 - Aaron Welch Planning
Attachment B: C25193458A - Ascent Environmental, Inc.

Attachment C: C25193458B - Lexington Planning LLC
Attachment D: C25193458C - PlaceWorks, Inc.

Attachment E: C25193458D - Raimi & Associates, Inc.

APPROVED BY:

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CITY OF PALO ALTO CONTRACT NO. C25193458

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND AARON WELCH PLANNING

This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of July, 2025 (the “Effective Date”) , by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and AARON WELCH PLANNING, a sole proprietor, located at 1226 Rose Street Berkeley, CA 94702 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS

A. CITY intends to provide on -call urban planning support (the “Project”) and desires to engage a consultant to provide services in connection with the Project (the “Services”, as detailed more fully in Exhibit A).

B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.

C. CITY, in reliance on these representations , desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.

NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:

SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.

Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)

CITY may elect to, but is not required to, authorize on-call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation).

CONSULTANT shall provide on -call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A -1 entitled “PROFESSIONAL SERVICES TASK ORDER”.

Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement.

Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

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To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully exec uted Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on -call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.

SECTION 2. TERM.

The term of this Agreement shall be from the date of its full execution through June 30, 2030, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.

SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.

CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.

SECTION 4. NOT TO EXCEED COMPENSATION.

The compensation to be paid to CONSULTANT fo r performance of the Services described in Exhibit “A” , is in an aggregate amount that shall not exceed Two Million ($2,000,000.00) over the Term across a total of five (5) consultant agreements (C25193458, C25193458A to C25193458D), of which this is one. The five (5) contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein.

CONSULTANT acknowledges and agrees that the CITY is hiring five (5) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compe nsation to all five (5) consultants including CONSULTANT, will not exceed in aggregate, across all five (5) agreements, and will not exceed in aggregate Two Million ($2,000,000.00).

CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Two Million ($2,000,000.00) during the term of the agreement. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “SCHEDULE OF RATES,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY.

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Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services s hall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”.

SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including , if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager via email at the following address: PCEContracts@ paloalto.gov. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.

SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSUL TANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.

SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or th e performance of the Services or those engaged to perform Services under this Agreement , as amended from time to time . CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.

SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services , arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.

SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.

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SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement.

CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities re lated to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained.

SECTION 11. ASSIGNMENT . The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder wit hout the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, succes sors, executors, administrators and assignees of the parties.

SECTION 12. SUBCONTRACTING.

Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services with prior approval, documented in writing, including Scope of Services, cost, and schedule of performances. The use of subcontractors cannot increase compensation pursuant to Section 4 of this Agreement.

CONSULTANT shall be responsible for directing the work of any subcon tractors and for any compensation due to subcon tractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcon tractors. CONSULTANT shall change or add subcon tractors only with the prior written approval of the City Manager or designee.

SECTION 13. PROJECT MANAGEMENT . CONSULTANT will assign Aaron Welch, Phone: 510-495-7242, Email: [email protected] as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day -to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9
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remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.

CITY’s Project Manager is Jennifer Armer, Planning & Development Services Department, , 250 Hamilton Avenue Palo Alto, CA, 94301, Telephone: 650-329-2191. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.

SECTION 1 4. OWNERSHIP OF MATERIALS . All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.

SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.

SECTION 16. INDEMNITY.

16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its office rs, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.

16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.

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16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.

SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 2 9.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated . No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy.

SECTION 18. INSURANCE.

18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.

18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.

18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days ’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.

18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT ’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.

SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.

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or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.

19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).

19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; pr ovided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion . The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.

19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).

SECTION 20. NOTICES.

All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:

To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303

With a copy to the Purchasing Manager

To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement.

CONSULTANT shall provide written notice to CITY of any change of address.

SECTION 21. CONFLICT OF INTEREST.

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has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.

21.2. CONSULTANT furt her covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest.

CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an off icer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time . CONSULTANT agrees to notify CITY if any conflict arises.

21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.

SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.

22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section

2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.

22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.

SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department , hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste ; and, third, recycling or composting waste. In particular, C ONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to C ITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9
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post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by C ONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.

SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE .

CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.

SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code , as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.

SECTION 2 6. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.

26.1. This Project is not subject to prevailing wages and related requirements .

CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j).

SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects , certain claims procedures shall apply, as set forth in Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9
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Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.

This Project is not a 9204 Public Works Project.

SECTION 28. CONFIDENTIAL INFORMATION.

28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose.

CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information.

Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreeme nt and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.

28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, d irectly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentia lity obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.

28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.

28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requ irements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.

28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Docusign Envelope ID: 7526E0F8-B048-484C-B12F-1E5DB3D10EA7 Item 9
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Information on CONSULTANT.

28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.

SECTION 29. MISCELLANEOUS PROVISIONS.

29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.

29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.

29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.

29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.

29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the una ffected provisions of this Agreement will remain in full force and effect.

29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.

29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.

29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.

29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.

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SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:

EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS

THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.

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CONTRACT No. C25193458 SIGNATURE PAGE

IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.

CITY OF PALO ALTO

____________________________
City Manager

APPROVED AS TO FORM:

__________________________
City Attorney or designee

AARON WELCH PLANNING

Officer 1

By:

Name: Aaron Welch
Title: Principal
[email protected]

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EXHIBIT A

SCOPE OF SERVICES

CONSULTANT shall provide the Services detailed in this Exh ibit A, entitled “SCOPE OF SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualific ations, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project.

CONSULTANT’s participation in t he planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications.

CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services.

CONSULTANT shall ensure that all contract staff assigned to work under this scope shall complete and file a Form 700, Statement of Economic Interests, which can be found at http://www.fppc.ca.gov/Form700.html. This requirement is consistent with the CITY’s Conflict of Interest Code and the California Political Reform Act.

CITY will issue TASK ORDERs related to the following services. CITY acknowledges that due to the on -call nature of this contract, that CO NSULTANT may not be able complete all noted activities. Activities are listed to give CITY and CONSULTANT broad ability to cover all aspects of CITY needs either directly through CONSULTANT or indirectly through SUBCONTRACTORS. CITY may, at its discretion and with prior written authorization, request the CONSULTANT or SUBCONTRACTORS to perform related planning , community development services and additional services that fall within the general scope of the other planning-related contracts issued under this procurement. Such services will be coordinated and authorized in writing by the CITY and may include related tasks necessary to ensure continuity of planning operations or project delivery.

CONSULTANT will write well -organized repo rts regarding complex planning issues, professionally facilitate meetings, attend, and give presentations at meetings with applicants, consultants, and the public as needed, including public hearings. CONSULTANT will make professional presentations to the Council, City Commissions, and Boards. CONSULTANT will coordinate with CITY staff, departments, consultants, and outside agencies during project reviews and processing and respond to public inquiries. CONSULTANT will work independently, follow direction, seek clarification prior to completion of work assignment, analyze quantitative data and qualitative information, and think creatively and critically.

CONSULTANT will provide the following activities (as applicable):

1. Provide project management support for long-range planning and policy development and implementation initiatives.

2. Prepare staff reports, presentations, and supporting materials for City Council, Planning and Transportation Commission, Architectural Review Board, and other public/community meetings.

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3. Present at public hearings, workshops, and community engagement meetings.

4. Draft and support adoption of planning documents, including Comprehensive Plan amendments, Zoning Code updates, area plans, and other long-range planning studies.

5. Conduct research, policy analysis, technical studies, and assist with the implementation of State laws and regional planning initiatives.

6. Prepare ordinances, resolutions, and related implementation tools in support of long-range planning policies.

7. Prepare environmental analysis and determinations for projects, as necessary, in conformance with the California Environmental Quality Act (CEQA) and National Environmental Quality Act (NEPA).

8. Provide specialized support in urban design, visual/spatial analysis, and renter protection policies.

9. Assist with the preparation of annexation applications and support items related to the Local Agency Formation Commission (LAFCO).

10. Additional related tasks or projects, as assigned.

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EXHIBIT A-1

PROFESSIONAL SERVICES TASK ORDER

CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO.

OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:

2. CONSULTANT NAME:

3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________

5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
 SERVICES AND DELIVERABLES TO BE PROVIDED
 SCHEDULE OF PERFORMANCE
 MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

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EXHIBIT B

SCHEDULE OF PERFORMANCE

Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.)

The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.

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EXHIBIT C

COMPENSATION

CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1.

The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement . CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4) , within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.

REIMBURSABLE EXPENSES

CONSULTANT’S ordinary business expenses , such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.

Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are:

A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.

B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost.

All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information.

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EXHIBIT C-1

SCHEDULE OF RATES

CONSULTANT’s schedule of rates for Additional Services per Section 4 is as follows:

CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates so long as the changes do not increase the not to exceed compensation amount as specified in Section 4 of the Agreement. Rates are likely to adjust each January 1st of each year up to and not to exceed 3-5% increase or no greater the CPI.

Title Hourly Rate ($)
Principal Planner 250
Senior Planner 175
Associate Planner 125

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EXHIBIT D

INSURANCE REQUIREMENTS

CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE

CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A -:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.

AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.

REQUIRED TYPE OF COVERAGE REQUIREMENT

MINIMUM LIMITS
EACH

OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY

STATUTORY

STATUTORY STATUTORY STATUTORY
YES

GENERAL LIABILITY, INCLUDING

PERSONAL INJURY, BROAD FORM

PROPERTY DAMAGE BLANKET

CONTRACTUAL, AND FIRE LEGAL

LIABILITY

BODILY INJURY

PROPERTY DAMAGE

BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

YES

AUTOMOBILE LIABILITY,

INCLUDING ALL OWNED, HIRED,

NON-OWNED

BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE

PROPERTY DAMAGE

BODILY INJURY AND PROPERTY

DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000

$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000

YES

PROFESSIONAL LIABILITY,

INCLUDING, ERRORS AND

OMISSIONS, MALPRACTICE (WHEN

APPLICABLE), AND NEGLIGENT

PERFORMANCE
ALL DAMAGES $1,000,000
YES

THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST

AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM

OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.

I. INSURANCE COVERAGE MUST INCLUDE:

A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.

II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: [email protected]

III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:

A. PRIMARY COVERAGE

WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,

INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR

CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.

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B. CROSS LIABILITY

THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER

THE POLICY SHALL NOT, FOR T HAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE

INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE

INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.

C. NOTICE OF CANCELLATION

1. IF THE POLICY IS CANCELED B EFORE ITS EXPIRATION DATE FOR ANY REASON

OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL:

[email protected]

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CITY OF PALO ALTO CONTRACT NO. C25193458A

AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND ASCENT ENVIRONMENTAL, INC.

This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of July, 2025 (the “Effective Date”) , by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and ASCENT ENVIRONMENTAL, INC. , a California Corporation , located at 455 Capitol Mall, Suite 300 Sacramento, CA 95814 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS

A. CITY intends to provide on -call urban planning support (the “Project”) and desires to engage a consultant to provide services in connection with the Project (the “Services”, as detailed more fully in Exhibit A).

B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.

C. CITY, in reliance on these representations , desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.

NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:

SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.

Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)

CITY may elect to, but is not required to, authorize on-call Services up to the maximu m compensation amount set forth in Section 4 (Not to Exceed Compensation).

CONSULTANT shall provide on -call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A -1 entitled “PROFESSIONAL SERVICES TASK ORDER”.

Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement.

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Environmental, Inc.

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forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully exec uted Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on -call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.

SECTION 2. TERM.

The term of this Agreement shall be from the date of its full execution through June 30, 2030, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.

SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.

CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.

SECTION 4. NOT TO EXCEED COMPENSATION.

The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” , is in an aggregate amount that shall not excee d Two Million ($2,000,000.00) over the Term across a total of five (5) consultant agreements (C25193458, C25193458A to C25193458D), of which this is one. The five (5) contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein.

CONSULTANT acknowledges and agrees that the CITY is hiring five (5) consultants, including CONSULTANT, none of whom will be guaranteed or assured of any specific quantity of work to be performed. If the work is performed by any one or more consultants, including CONSULTANT, CITY will ensure that total compensation to all five (5) consultants including CONSULTANT, will not exceed in aggregate, across all five (5) agreements, and will not exceed in aggregate Two Million ($2,000,000.00).

CONSULTANT agrees to complete all Services described in Exhibit A, including reimbursable expenses, are subject to a Maximum Total Compensation “NOT TO EXCEED” amount of Two Million ($2,000,000.00) during the term of the agreement. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “SCHEDULE OF RATES,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shal l be at no cost to the CITY.

Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9
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Environmental, Inc.

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Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written author ization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”.

SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including , if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager via email at the following address: PCEContracts@ paloalto.gov. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.

SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSUL TANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.

SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or th e performance of the Services or those engaged to perform Services under this Agreement , as amended from time to time . CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.

SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services , arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.

SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9
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Environmental, Inc.

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to CITY.

SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement.

CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities re lated to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained.

SECTION 11. ASSIGNMENT . The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder wit hout the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, succes sors, executors, administrators and assignees of the parties.

SECTION 12. SUBCONTRACTING.

Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services with prior approval, documented in writing, including Scope of Services, cost, and schedule of performances. The use of subcontractors cannot increase compensation pursuant to Section 4 of this Agreement.

CONSULTANT shall be responsible for directing the work of any subcon tractors and for any compensation due to subcon tractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcon tractors. CONSULTANT shall change or add subcon tractors only with the prior written approval of the City Manager or designee.

SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Gary Jakobs, Phone:
916-930-3182, Email: [email protected] as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day -to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Docusign Envelope ID: 78677455-3FA3-4FEE-9214-913AE8967817 Item 9
Attachment B -
C25193458A - Ascent
Environmental, Inc.

Item 9: Staff Report
Pg.
29 Packet Pg. 347 of 627

Professional Services
Rev. Jan 29, 2024