Agenda packet — Palo Alto City Council, August 18, 2025 (part 3 of 4)

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-in-Charge 265.00
Project Manager 170.00
Senior Cultural Resource Planner 195.00
Cultural Resource Planner 150.00
Associate Planner 135.00
Materials Conservation Specialist 195.00
Intern 115.00
Office Administrator 125.00

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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

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

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 THAT 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 BEFOR E 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. C25193458I

AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND RINCON CONSULTANTS 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 RINCON CONSULTANTS INC. , a California Corporation, located at 180 N Ashwood Ave Ventura, CA 93003 (“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 for 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 six (6) consultant agreements (C25193458 E to C25193458J), of which this is one. The six (6) 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 a grees that the CITY is hiring six (6) 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 six (6) consultants including CONSULTANT, will not exceed in aggregate, across all six (6) 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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Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CIT Y. 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. CON SULTANT 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 the 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 resp onsible 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 cos ts, 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 Abe Leider, Phone:
510-834-4455, 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 remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, Docusign Envelope ID: 976E68E9-AAAA-4BB5-8CB9-614346E741D8 Item 13
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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 of ficers, 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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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 endor sement 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 r equired 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.

19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written Docusign Envelope ID: 976E68E9-AAAA-4BB5-8CB9-614346E741D8 Item 13
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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; provided, 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 accept ance 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.

21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which Docusign Envelope ID: 976E68E9-AAAA-4BB5-8CB9-614346E741D8 Item 13
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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 CITY 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 post-consumer content paper, unless ot herwise approved by CITY’s Project Manager. Any Docusign Envelope ID: 976E68E9-AAAA-4BB5-8CB9-614346E741D8 Item 13
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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 th e 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 Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.

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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 Information on CONSULTANT.

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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 ap ply 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. C25193458I 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

RINCON CONSULTANTS INC.

Officer 1

By:

Name: Jennifer Haddow
Title: Executive Vice President
[email protected]

Officer 2 (Required for Corp. or LLC)

By:

Name: Lacrissa Davis
Title: Executive Vice President
[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 qualifications, 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 the planning, discussions, or drawing of project plans or specifications shall be limite d 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. The CITY acknowledges that due to the on -call nature of this contract, that CONSULTANT may not be able to 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 reports 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. Historic Preservation, including but not limited to:
a. Conduct historic resource evaluations consistent with local, State, and Federal standards.
b. Prepare and complete State of California Department of Parks and Recreation (DPR) 523 Forms.

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c. Apply the Secretary of the Interior’s Standards for the Treatment of Historic Properties to planning documents, reviews, and recommendations. d. Prepare Character-Defining Features Memoranda and related historic preservation documentation.
e. Provide training, technical guidance, and support to City staff on historic preservation policies, procedures, and best practices as needed.

2. Land Use Economics, including but not limited to:
a. Conduct comprehensive economic, market, and real estate feasibility analyses. b. Develop and analyze pro forma models to evaluate development approaches and public benefit outcomes.
c. Estimate infrastructure costs and recommend potential financing and funding strategies.
d. Provide technical support for specific and general plans, policy initiatives, and development strategies.
e. Perform fee analysis and real estate evaluation services. f. Interpret and apply local, State, and Federal legislation relevant to land use economics.
g. Offer development recommendations and provide insights into real estate trends and market conditions.

3. Environmental Review, including but not limited to:
a. Prepare and manage environmental review documents, including:
i. CEQA/NEPA Exemptions
ii. Initial Studies
iii. (Mitigated) Negative Declarations
iv. Environmental Impact Reports (EIRs)
v. Environmental Assessments (EAs)
vi. Environmental Impact Statements (EISs)
vii. Mitigation Monitoring & Reporting Programs (MMRPs) b. Ensure all documentation complies with CEQA, NEPA, and other applicable laws.
c. Provide legally defensible environmental determinations. d. Prepare or oversee technical studies through sub-consultants, including but not limited to:
i. Cultural and Historical Evaluations
ii. Biological Resource Assessments
iii. Noise, Air Quality, and Greenhouse Gas Emissions Studies iv. Transportation Impact Analyses
v. Water Supply and Quality Reports
vi. Stormwater and Wastewater Management Evaluations
vii. Hazardous Materials Assessments
viii. Environmental Mitigation Plans and Reports
e. Coordinate distribution of environmental documents and notices, providing both electronic and printed copies as requested.
f. Manage the environmental review process in coordination with City staff, sub- consultants, and external agencies.

4. 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:

Title Hourly Rate ($)
Senior Principal 330
Principal 318
Director 318
Senior Supervisor II 302
Supervisor I 282
Senior Professional II 264
Senior Professional I 246
Professional IV 218
Professional III 203
Professional II 180
Professional I 160
Associate III 135
Associate II 121
Associate I 113
Field Technician 97
Technical Editor 152
Project Accountant 129
Billing Specialist 111
Publishing Specialist 124
Clerical 111

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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

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

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

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

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.

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. C25193458J

AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND STRATEGIC ECONOMICS, 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 STRATEGIC ECONOMICS, INC.., a California Corporation, located at 2991 Shattuck Ave #203 Berkeley, CA 94705 (“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 and environment review 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).

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:

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).

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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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.

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 exceed Two Million ($2,000,000.00) over the Term across a total of six (6) consultant agreements (C25193458 E to C25193458J), of which this is one. The six (6) contracts will be administered by the CITY’s PLANNING & DEVELOPMENT SERVICES to ensure the total aggreg ate of compensation paid over the Term does not exceed the amounts set forth herein.

Consultant acknowledges and agrees that the CITY is hiring six (6) 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 six (6) consultants including CONSULTANT, will not exceed in aggregate, across all six (6) 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 w hich 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”. CONSULTAN T shall not receive any compensation for Additional Services performed without the prior written authorization 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 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. CONSULTANT 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 s hall 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 L AWS. 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 the performance of the Services or those engaged to perform Services u nder 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 e stimates 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 12. SUBCONTRACTING.

CONSULTANT shall be responsible for directing the work of any subcon tractors and for any compensation due to subcon tractors. CITY assumes no respo nsibility 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 Dena Belzer, Phone:
(510) 647-5291 ext . 108 , 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: AB6838D9-BAAA-4011-A4FA-3E653C641DB8 Item 13
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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.

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.

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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 18. INSURANCE.

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.

19.3. 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 further 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 officer 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.

SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.

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

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

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: AB6838D9-BAAA-4011-A4FA-3E653C641DB8 Item 13
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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.

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

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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.

29.7. 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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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. C25193458J 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

STRATEGIC ECONOMICS, INC.

Officer 1

By:

Name: Dena Belzer
Title: President
[email protected]

Officer 2 (Required for Corp. or LLC)

By:

Name: Charles Adams
Title: Secretary
[email protected]

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EXHIBIT A

SCOPE OF SERVICES

CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or spec ifications.

CITY will issue TASK ORDERs related to the following services. The CITY acknowle dges that due to the on -call nature of this contract, that CONSULTANT may not be able to 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 provide the following activities (as applicable):

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4. Additional related tasks or projects, as assigned.

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EXHIBIT A-1

PROFESSIONAL SERVICES TASK ORDER

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:_____________________________________

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

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EXHIBIT C

COMPENSATION

REIMBURSABLE EXPENSES

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:

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:

Title Hourly Rate ($)
President 329
Principal 250
Senior Associate 211
Associate II 186
Associate 159
Research Analyst 122

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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

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

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

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

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 THAT 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 BEFOR E 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.

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 Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: August 18, 2025
Report #:2507-4980
TITLE
Approval to Extend the Lease Between 285 Hamilton LLC, and the City of Palo Alto for the Premises Located at 285 Hamilton Avenue (Development Center) for 36 months, at a Starting Base Rent of $49,420.45 per Month and Increasing 3 Percent Annually; CEQA Status – Exempt Under CEQA Guidelines Section 15061(b)(3)

RECOMMENDATION
Staff recommends that Council authorize the City Manager or their designee to countersign the letter contained in Attachment A, from 285 Hamilton LLC, to extend the City’s lease for the office space located at 285 Hamilton Avenue, Suite 100. The lease will extend for an additional 36 months commencing on February 1, 2026, through January 31, 2029. The initial base rent will increase by 3% from the current amount, to $49,420.45 per month, and will continue to increase 3% annually.

BACKGROUND
Planning and Development Services operate within the three locations listed below. They will vacate 526 Bryant Street at the end of the current term on January 31, 2026, but desire to continue operations from the other leased location at 285 Hamilton Avenue while maintaining the City Hall 5th floor location.
Table 1: Planning and Development Services Locations
Address Expiration Date Square Footage
285 Hamilton Avenue 1/31/2026 6,361
526 Bryant Street 1/31/2026 3,076
City Hall – 5th Floor N/A 4,388
Total 13,825
5th Floor square footage is only 75% of the total since the floor is shared with Transportation. It also excludes elevator and restroom area.

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The current agreement for 285 Hamilton Avenue was approved by the Council on June 21, 20211 and included two options to extend for additional one-year periods.

While the long-term plan is to relocate staff from 285 Hamilton Avenue into the soon-to-be- vacated police wing at City Hall, that space will require repairs and space planning is currently under way. An extension to the existing lease will provide sufficient time for completion of this work .

ANALYSIS
The recommended amendment to the current lease agreement will extend the lease for an additional 36 months, commencing on February 1, 2026 through January 31, 2029. The initial base rent will increase by 3% from the current amount to $49,420.45 per month and will continue to increase 3% annually, consistent with the annual increase in the current lease agreement. All other provisions of the lease remain unaltered and in full force and effect. The terms are similar to the options in the current agreement but extends the term to three total years instead of two. The City will continue to be responsible for a portion of the operating expenses (such as taxes, insurance, maintenance and repair, janitorial, and utilities), currently estimated at $9,098 per month. The extended term is expected to provide sufficient time for evaluating options for the future space of the development center and the Planning and Development Services Department. The Development Center serves as a one-stop shop, offering integrated City services to support the community in constructing safe, healthy, and sustainable buildings in compliance with state and local codes and regulations.

FISCAL/RESOURCE IMPACT
The current base rent to lease 285 Hamilton Avenue, Suite 100, is $47,981.02 per month or $7.54 per square foot. Upon commencement of the extended term, the monthly rent will increase 3% to $49,420.45 or $7.77 per square foot and continue to increase at the same rate annually. Current operating expenses are estimated at $9,098 per month. The current rental costs are included in the FY 2026 Operating Budget. No additional funding is required at this time and the annual appropriation will be included in the budget development process for the remaining term.

STAKEHOLDER ENGAGEMENT
The Real Estate Division of the Administrative Services Department met with Planning and Development Services to confirm the desire to remain at 285 Hamilton Avenue. Real Estate Division staff engaged with the landlord to extend the lease term under terms similar to the current agreement.

1 City Council, June 21, 2021; Agenda Item # 15;
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ENVIRONMENTAL REVIEW
Approval of to extend the lease is exempt from review under the California Environmental Quality Act (CEQA) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment (CEQA Guidelines Section 15061(b)(3)).

ATTACHMENTS
Attachment A: Letter From 285 Hamilton LLC to Extend Lease APPROVED BY:

Lauren Lai, Administrative Services Director
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Thoits Bros., Inc. 629 Emerson Street Palo Alto, CA 94301 650-323-4868 July 11, 2025 VIA EMAIL City of Palo Alto 285 Hamilton Avenue Palo Alto, California Attn: Sunny Tong, Real Property Manager Email: [email protected] RE: Office Lease dated October 18, 1998, as amended by that certain Amendment No. 1 to Office Lease dated May 18, 1999, as further amended by that certain Amendment No. 2 to Office Lease dated June 13, 2006, as further amended by that certain Amendment No. 3 to Office Lease dated November 1, 2011, as further amended by that certain Amendment No. 4 to Office Lease dated September 3, 2013, as further amended by that certain Fifth Amendment to Office Lease dated February 1, 2016, and as further amended by that certain Sixth Amendment to Office Lease dated as of May 22, 2017, a amended by Seventh Amendment to Office Lease dated as of June 22, 2021 (collectively, the “Lease”) between 285 Hamilton LLC, a Delaware limited liability company (“Landlord”), as successor to Thoits Bros., Inc. and The City of Palo Alto, a California municipal corporation (“Tenant”) Dear Sunny: Tenant’s renewal options under the Lease have expired. However, Landlord is willing to extend the Lease for an additional term of three (3) years expiring on January 31, 2029 (the “Extended Term”), with no further options to extend under the Lease. Base Rent during the Extended Term will be increased each year of the Extended Term by 3% above the Base Rent previously in effect, with the first escalation occurring on February 1, 2026 (which will increase the Base Rent to $49,420.45 per month/$594,045.40 per annum), and each subsequent escalation to occur on the one year anniversary thereof. Tenant’s Lease for the Extended Term will otherwise be on all the terms and conditions of the Lease. Such offer to extend the Lease for the Extended Term shall be effective only if Tenant delivers a duly executed copy of this Letter to Landlord by August 19, 2025, time being of the essence. If so executed by Tenant, this letter shall amend the Lease. If Tenant fails to deliver such duly executed copy of this letter by such date, this letter shall have no force or effect, and Tenant shall have no right to extend the Lease for the Extended Term. Tenant’s signature may be delivered electronically, including by PDF, DocuSign or AdobeSign. By executing this Letter, Tenant hereby confirms that (1) except as modified hereby, all other terms and conditions of the Lease remain unchanged and in full force and effect and are hereby ratified and confirmed by the parties hereto, and the Lease together with this letter constitutes the entire Item 14
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agreement between Landlord and Tenant with respect to Tenant’s lease of space at 285 Hamilton Avenue, (2) Tenant accepts the Premises in its “as is” and “where is” condition, (3) as of the date of Tenant’s execution of this letter : (a) Tenant is not in default under any of the terms and provisions of the Lease; (b) Landlord is not in default in the performance of any of its obligations under the Lease and Tenant is unaware of any condition or circumstance which, with the giving of notice or the passage of time or both, would constitute a default by Landlord; (c) Landlord has completed, to Tenant’s satisfaction, any and all improvements to the Premises, and has paid any and all allowances required of it under the Lease; (d) Tenant has no defenses, liens, claims, counterclaims or right to offset against Landlord or against the obligations of Tenant under the Lease, and (e) Tenant did not involve any brokers in connection with this letter agreement and agrees to indemnify, defend and hold Landlord harmless from any claims by a broker or finder based on alleged agreements or dealings with Tenant. Sincerely, 285 Hamilton LLC, a Delaware limited liability company By: Thoits Bros., Inc., a California corporation, its sole member By: ____________________ John R. Shenk, CEO Accepted: The City of Palo Alto, a California municipal corporation By: _____________________________ Name: Its Duly Authorized ________________. Dated: August ____, 2025 Item 14
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: August 18, 2025
Report #:2507-4994
TITLE
PUBLIC HEARING: Adoption of Resolution Correcting Clerical Errors in Three Electric Rate Schedules: E-16 (Unmetered Electric Service), E-EEC-1 (Export Electricity Compensation), and E- NSE-1 (Net Surplus Electricity Compensation); CEQA Status: Not a project under CEQA Guidelines Sections 15378(b)(4) and (5) and Exempt Under Section 15273(a).

RECOMMENDATION
Staff recommends that Council adopt the attached Resolution (Attachment A) and Electric Rate Schedules (Attachment B) to correct clerical errors associated with three FY 2026 Electric rate schedules approved on June 16, 2025: E-16 (Unmetered Electric Service), E-EEC-1 (Export Electricity Compensation), and E-NSE-1 (Net Surplus Electricity Compensation).

BACKGROUND
At the June 16, 2025 Council meeting (Staff Report #2411-37761), Staff uploaded incorrect rate schedules for E-16 (Unmetered Electric Service), E-EEC-1 (Export Electricity Compensation), and E-NSE-1 (Net Surplus Electricity Compensation). Due to the clerical error, Staff recommends adoption of the attached resolution correcting the three impacted rate schedules to reflect the correct FY 2026 rates from the Electric Financial Forecast adopted by Council June 16, 2025 for these services. Customers have not been charged or negatively impacted by the incorrect rates.

Solar customers are still receiving the FY 2025 rates.

ANALYSIS
Rate Schedule E-16 (Unmetered Electric Service Rate) – (Table 1) The City offers an E-16 rate for unmetered electric service for wireless communication facilities and related equipment on wood utility poles and streetlight poles. The E-16 unmetered service rate aligns 1 Council Meeting June 16, 2025, Item 22:
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closely with the E-2 rate for small commercial electric service and excludes costs related to meter reading and is determined based on the energy requirement of equipment specifications. The E-16 rate also includes miscellaneous electric utility charges such as licensing fees for City-owned spare conduit, usable space for utility pole attachments, and mounting communication equipment on utility poles and streetlight poles.

The corrections from the June 16, 2025 adopted E-16 rates are:
C1 – Customer Charge should be increased from $7.31 to $10.96 per month to reflect the actual labor cost. Prior to June 2025, this rate was last updated in July 2009. E4 – Processing Fee for Utility Pole Attachment should be changed from $152 to one total hour of engineering and operations review under the C-1 rate schedule for utility miscellaneous charges. The current C-1 hourly rate for engineering and operations review is still $152, but Staff is in the process of updating the FY 2026 C-1 miscellaneous rates, as these rates were last updated in 2019. Prior to June 2025, the pole attachment processing fee was last updated in October 2012.

Table 1 – Summary of E-16 Unmetered Electric Service Rate Rate Current FY 2026 Proposed FY 2026
Customer Charge, $/month $7.31 $10.96
Processing Fee for Utility Pole Attachment, $/pole $152.00 One regular hour based on the C-1
Miscellaneous Rate
Schedule
Rate Schedules E-NSE-1 (Net Energy Metering Compensation Rate) and E-EEC-1 (Export Energy Compensation Rate) – (Table 2)
The City operates two Net Energy Metering (NEM) programs. Solar customers served by the City of Palo Alto's (CPAU) original NEM program, also called NEM 1, are compensated at retail rates for electricity they export to the grid, and solar customers served by the NEM successor program, or NEM 2 (effective after the City reached its NEM 1 cap at the end of 2017), are compensated at the Export Electricity Compensation (EEC) rate for exported electricity.

Customers on the NEM 1 program who have chosen to have the value of any annual net generation they produced over the past 12 months credited back to their account do so under the Net Metering Net Surplus Electricity Compensation (E-NSE-1) rate. The Net Surplus Electricity Compensation rate represents the value of the City’s avoided cost or value of customer-generated electricity in Palo Alto, including compensation for the energy, avoided capacity charges, avoided transmission and ancillary service charges, avoided transmission and distribution (T&D) losses, and renewable energy credits (RECs), or environmental attributes.

The corrections being made from the June 16, 2025 rate schedules are:

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E-NSE-1 – Net Surplus Electricity should be decreased from $0.1273 to $0.1012 to reflect market prices.
E-EEC-1 – Export Electricity should be decreased from $0.1243 to $0.1206 to reflect market prices.

No customers have been charged the incorrect rates. Net energy metering customers are still receiving the FY 2025 rates for the months of July and August 2025.

Table 2: NEM Buyback Rates – Current vs. Proposed
Rate
Current
FY 2026
$/kWh
Proposed
FY 2026
$/kWh
Net Surplus Electricity (E-NSE-1) $0.1273 $0.1012
Export Electricity (E-EEC-1) $0.1243 $0.1206

FISCAL/RESOURCE IMPACT
The estimated financial cost impact to the Electric utility from the two-month delay in implementing the correct rates for schedules E-NSE-1 and E-EEC-1 is approximately $1,200 and $23,000, respectively. There is a fiscal impact of $1,600 from the E-16 schedule revisions since it is used for annual billing. The annual customer charge bills will be invoiced post-Council action, with two months charged at the June-adopted rate and the remainder of the year at the corrected rates. There were no pole attachment applications in July and August 2025.

STAKEHOLDER ENGAGEMENT
The City Council reviewed staff’s proposal for the Electric Utility at its June 16, 2025 meeting.

The City Council unanimously approved the Electric Utility proposal, and this action simply corrects clerical errors in three rate schedules, to align with the Council-approved Electric Utility Financial Forecast.

ENVIRONMENTAL REVIEW
The proposed Resolution correcting clerical errors in three electric rate schedules are not projects subject to environmental review, pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a).

ATTACHMENTS
Attachment A: Resolution Amending Electric Rate Schedules E-16, E-EEC-1, and E-NSE-1 Attachment B: Corrected Rate Schedules for E-16, E-EEC-1, and E-NSE-1 APPROVED BY:

Alan Kurotori, Director of Utilities
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Attachment A * NOT YET APPROVED *

027073125 1
Resolution No.

Resolution of the Council of the City of Palo Alto Amending Utility Rate Schedules E-16 (Unmetered Electric Service), E-EEC-1 (Export Electricity Compensation), and E-NSE-1 (Net Metering Surplus Electricity Compensation)

R E C I T A L S
A. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges.

B. On August 18, 2025, the City Council heard and approved the proposed rate increase at a noticed public hearing.

The Council of the City of Palo Alto does hereby RESOLVE as follows:

SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-16 (Unmetered Electric Service) is hereby amended as attached and incorporated.

Utility Rate Schedule E-16, as amended, shall become effective September 1, 2025;

SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E -EEC-1 (Export Electricity Compensation) is hereby amended as attached and incorporated. Utility Rate Schedule E -EEC-1, as amended, shall become effective September 1, 2025;

SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-NSE-1 (Net Surplus Electricity Compensation Rate) is hereby amended as attached and incorporated. Utility Rate Schedule E -NSE-1, as amended, shall become effective September 1, 2025;

SECTION 4. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product.

//
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Attachment A - Resolution
Amending Electric Rate
Schedules E-16, E-EEC-1,
and E-NSE-1

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Attachment A * NOT YET APPROVED *

027073125 2
SECTION 5. The Council finds that amending the rate schedules do not meet the California Environmental Quality Act’s (CEQA) definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, and therefore, no environmental assessment is required. The Council finds that changing electric rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth wit h specificity the basis for this claim of CEQA exemption.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM: APPROVED:

Assistant City Attorney City Manager

Director of Utilities

Director of Administrative Services

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Attachment A - Resolution
Amending Electric Rate
Schedules E-16, E-EEC-1,
and E-NSE-1

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UNMETERED ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-16

CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No. E-16-1 Supersedes Sheet No. E-16-1
Effective 97-1-2025 dated 7-1-202516
A. APPLICABILITY:

T
his rate schedule is applicable under the terms and conditions of the City of Palo Alto Utilities Department to Customers who contract with the City for unmetered electric service for billboards, unmetered telephone services, telephone booths, railroad signals, cathodic protection units, traffic cameras, wireless antenna and related equipment, community antenna television and video systems, cable TV power supplies, and automatic irrigation systems and also applies to other miscellaneous Electric Utility fees to various public agencies and private entities.

B. T
ERRITORY:

W
ithin the incorporated limits of the City of Palo Alto and land owned or leased by the City.

C. N
ET MONTHLY BILL:

1. C
ustomer Charge using annual SEIU salary schedule: $ 7.3110.96 per month

2. E
nergy Charge:
(for all kWh supplied) using Electric Rate Schedule E2 plus all applicable riders

3. M
inimum Charge:

Minimum monthly charge will be the Customer Charge.

D. DE
TERMINATION OF ENERGY REQUIREMENTS:
a. I
nitial Inventory
Customer shall enter into a contract for service under this Schedule and provide a written inventory of all equipment at each of service requested, including the type and nameplate rating for each piece of equipment. The billing energy for each point of service will be determined by the Utilities Electric Engineering Division estimation of the kWh usage based on the type, rating and quantity of the equipment provided by the Customer.

M
onthly bill will be based on the following calculations:

1. Total Wattage.

2. Total Wattage times estimated annual operating hours as set in the contract equals annual watt hours.

3. Annual watt hours divided by 1000 hours equals annual kilowatt hours (kWh)

4. Annual kWh divided by twelve (12) months equal monthly kWh.

Attachment B
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Rate Schedules for E-16, E-
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UNMETERED ELECTRIC SERVICE

UTILITY RATE SCHEDULE E-16

CITY OF PALO ALTO UTILITIES
Issued by the City Council

Sheet No. E-16-2
Supersedes Sheet No. E-16-2
Effective 97-1-2025 dated 7-1-202516

5. Monthly kWh times current rate per kWh = monthly bill for each unmetered service location or equipment.

b. Updating Inventory
Customer will update its inventory by informing the Utilities Electric Engineering Division in writing of changes in type, rating and/or quantity of equipment as such changes occur, and billings will be adjusted accordingly. Upon Utilities Electric Engine ering Division request, but no later than the one year anniversary of the date on which Customer first takes service, Customer shall provide an updated inventory of all equipment at each point of service.

c. Test Metering
The Utilities Electric Engineering Division may, at its discretion, test meter the load at various types and ratings of the Customer’s equipment to the extent necessary to verify the estimated kWh usage used for billing purpose and, where dictated by such test metering, Utilities Electric Engineering Division will make prospective adjustments in estimated usage for subsequent billing purposes; however, Utilities shall be under no obligation to test meter- the load of Customer’s equipment. Utilities’ decision not to test meter the load of Customer’s equipment shall not release Customer from the obligation to provide to Utilities Electric Engineering Division, and to update, annually as provided in section b, an accurate inventory of the types, rating and quantities of equipment upon which billing is based.

d. Inspection
The Utilities Electric Engineering Division shall endeavor to inspect the equipment at each point of service annually as close to the anniversary date of the contract as is practical, and make prospective adjustments in billing as indicated by such inspections; however, Utilities shall be under no obligation to conduct such inspections for the purpose of determining accuracy of billing or otherwise. Utilities decisions not to conduct such inspections shall not release Customer from the obligation to provide to Utilities Electric Engineering Division, and to update, an accurate inventory of the types, rating and quantities of equipment upon which billing is based.

e. Billing for Service
As the service described in this schedule is unmetered, Customer agrees to pay amounts billed in accordance with the current inventory, regardless of whether any of the installations of the Customer’s equipment were electrically operable during the period in question and regardless of the cause of such equipment failure to operate.

E. M
ISCELLANEOUS RATES:

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Rate Schedules for E-16, E-
EEC-1, and E-NSE-1

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UNMETERED ELECTRIC SERVICE

UTILITY RATE SCHEDULE E-16

CITY OF PALO ALTO UTILITIES
Issued by the City Council

Sheet No. E-16-3
Supersedes Sheet No. E-16-3
Effective 97-1-2025 dated 7-1-202516

Service Description Rate *

1. License Fee for Electric Conduit Usage
(A) Exclusive use $ 1.94/ft/yr

2. Processing Fee for Electric Conduit Usage Actual Cost

3. License Fee for Utility Pole Attachments
(A) 1 ft. of usable space $ 47.60/pole/yr (B) 2 ft. of usable space 95.20/pole/yr (C) 3 ft. of usable space 142.80/pole/yr

4. Processing Fee for Utility Pole Attachments C-1 rate – 1 hr $ 152.00/pole -

5. License Fee for mounting communication equipment
including distributed antenna systems on utility poles $ 329.44/pole/yr

* Rates are monthly unless otherwise indicated.

F. NOTES:

The fees set forth in Section E.1 through E.5, inclusive, are subject to adjustment annually in accordance with fluctuations in the Consumer Price Index (CPI), if any. The base for computing the adjustment is the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland-San Jose MSA, which is published by the U.S. Department of Labor, Bureau of Labor Statistics for the month of December of a base year, which falls within the year in which a master license agreement is signed by the City and the licensee. The adjustment shall be calculated, if there is an increase or decrease between December of a base year (when the rate(s) is/are first applicable) and December of any subsequent base year.

{End}
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Rate Schedules for E-16, E-
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EXPORT ELECTRICITY COMPENSATION

UTILITY RATE SCHEDULE E-EEC-1

CITY OF PALO ALTO UTILITIES
Issued by the City Council

Supersedes Sheet No. E-EEC-1 Sheet No.E-EEC-1
dated 7-1-20254 Effective 97-1-2025

A. APPLICABILITY:

This Rate S chedule applies in conjunction with the otherwise applicable R ate Schedules for each Customer class. This Rate Schedule may not apply in conjunction with any time-of-use Rate Schedule.

This Rate Schedule applies to Customer-Generators as defined in Rule and Regulation 2 who are either not eligible for Net Energy Metering or who are eligible for Net Energy metering but elect to take Service under this Rate Schedule.

B. TERRITORY:

This rate schedule applies everywhere the City of Palo Alto provides Electric Service.

C. RATE:

The following compensation rate shall apply to all e lectricity exported to the grid.

Per kWh

Export electricity compensation rate $ 0.12430.1206

D. SPECIAL CONDITIONS

1. Metering equipment: Electricity delivered by CPAU to the Customer -Generator or received by CPAU from the Customer-Generator shall be measured using a M eter capable of registering the flow of electricity in two directions (aka “bidirectional meter”). The electrical power measurements will be used for billing the Customer -Generator. CPAU shall furnish, install and own the appropriate Meter.

2. Billing:
a. CPAU shall measure during the billing period, in kilowatt -hours, the electricity delivered and received after the Customer-Generator serves its own instantaneous load. b. CPAU shall bill the Customer-Generator consumption charges for the electricity delivered by CPAU to the Customer-Generator based on the Customer-Generator’s applicable Rate Schedule.
c. In the event the electricity generated exceeds the electricity consumed and therefore is received by CPAU, the Customer will receive a credit for all electricity received by CPAU at the buyback Rate designated in section C above.

{End}

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Rate Schedules for E-16, E-
EEC-1, and E-NSE-1

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NET METERING NET SURPLUS ELECTRICITY COMPENSATION

UTILITY RATE SCHEDULE E-NSE-1

CITY OF PALO ALTO UTILITIES
Issued by the City Council

Supersedes Sheet No. E-NSE-1 Sheet No. E-NSE-1
dated 07-01-20254 Effective 97-1-2025

A. APPLICABILITY:

This Rate Schedule applies to eligible residential and small commercial Net Energy Metering Election A Customers who, at the end of an annual settlement period, as described in Rule 29, are Net Surplus Customer-Generators of electricity who elect to receive monetary compensation as such preference is indicated on the net surplus electricity election form. This Rate Schedule only applies to Customers who participate in Net Energy Metering, and does not apply to Customers that take service under the City’s Net Energy Metering Successor Rate, as each of these terms are defined in Rule and Regulation

2. B. TERRITORY:

This rate schedule applies everywhere the City of Palo Alto provides Electric Service.

C. RATES:

Per kWh

Net Surplus Electricity Compensation rate $ 0.12730.1012

D. SPECIAL CONDITIONS

1. Net Surplus Electricity Compensation Rate eligibility shall be determined as specified in Rule 29.

Net surplus electricity , as specified in Rule 29, if applicable, will be multiplied by the above compensation rate to determine the Customer’s annual net surplus electricity compensation stated in dollars.

2. Additional terms, conditions and definitions govern Net Energy Metering Service and Interconnection, as described in Rule 29.
{End}
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Attachment B - Corrected
Rate Schedules for E-16, E-
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: August 18, 2025
Report #:2506-4843
TITLE
Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3)

RECOMMENDATION
Staff recommends that the City Council:

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

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

BACKGROUND
On June 16, 2025, City Council members Burt, Lu, and Lythcott-Haims pulled the subject report from the consent calendar to schedule the subject hearing.

Attachment A includes the previous report containing staff’s analysis and related attachments.

Attachment B includes additional correspondence from the appellant subsequent to the Council’s action to pull the item. This correspondence appears to generally restate the appellant’s statement from the June 16, 2025 item, but adds an expanded introduction, an executive summary, a new footnote, and several references to a September 2016 email Item 16
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announcing a change in staff implementation of Chapter 18.70. The additional material does not affect staff’s analysis.

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

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

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

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

ATTACHMENTS
Attachment A: Council Report with Attachments, Dated June 16, 2025 Attachment B: Additional Appellant Correspondence, Dated August 3, 2025 APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 16
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CITY OF PALO ALTO

CITY COUNCIL
Monday, June 16, 2025
Council Chambers & Hybrid
5:30 PM

Agenda Item

12. Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA:

Exempt Pursuant to CEQA Guidelines Section 15061(b)(3)
Item 16
Attachment A - Council
Report with Attachments,
Dated June 16, 2025

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7 4
4 4
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: June 16, 2025
Report #:2505-4747
TITLE
Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3)

RECOMMENDATION
Staff recommends that the City Council:

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

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

Staff believe that the Director‘s interpretation reflects the most reasonable and consistent application of the Municipal Code and that it supports the broader policy goal of reducing Item 16
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noncomplying conditions over time. While the proposal in the appellant‘s case is minor, permitting it would render portions of the code meaningless and could create a precedent for larger changes inconsistent with the Code’s purpose. Staff recommend that the City Council deny the appeal, uphold the interpretation, and direct staff to prepare a future code amendment to allow administrative de minimis exceptions for minor residential modifications that do not impact neighbors or the public realm.

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

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

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

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

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

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

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

A timely appeal was submitted on May 14, 2025.

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

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

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

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

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

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

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

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

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

Section 18.70.080 states:
a) Except as specifically permitted by subsections (b) and (c) hereof or by Section 18.12.050(a), no enlargement, expansion, or other addition or Item 16
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improvement to a noncomplying facility shall be permitted which increases the noncompliance. This section shall not be construed to prohibit enlargement or improvement of a facility, otherwise permitted by this title, which does not affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.
b) …. (not applicable to residential properties)
The appellant asserts that their proposal is permitted by PAMC Section 18.17.080 because it does not affect the particular degree or manner of non-compliance. In essence, the appellant argues that a change in the location of a noncomplying feature cannot be considered a change in the manner of noncompliance because the word “manner” refers only to the general type of noncompliance (e.g. height, setback, or GFA) and cannot refer to “location.” The appellant’s position, however, eliminates the word “particular” from the code. The word “particular” adds a level of specificity to the requisite analysis. The “particular manner” of noncompliance is reasonably understood to mean the specific way in which a structure is noncomplying, which would include location. Rather than introducing new code language, as suggested by the appellant, the Director’s interpretation reflects a reasonable reading of the code that gives effect to all of its provisions.

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

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

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

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

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

18.70.090.

Section 18.70.100 states:

A noncomplying facility which is damaged or destroyed by any means except ordinary wear and tear and depreciation may be reconstructed only as a complying facility, except as follows:
a) When the damage or destruction of a noncomplying facility affects only a portion of the facility that did not constitute or contribute to the noncompliance, said portion may be repaired or reconstructed to its previous configuration.
b) When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration. In no event shall such replacement or construction create, cause, or increase any noncompliance with the requirements of this title. c) …. (not applicable to residentially zoned properties) Item 16
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d) Notwithstanding subsections (a), (b) and (c) hereof, a noncomplying facility housing a conforming use in the R-1 and RE zones, which when built was a complying facility, which is damaged or destroyed by non- willful means (i.e., acts of God) shall be permitted to be replaced, on the same site, and in its previous configuration, without necessity to comply with the current site development regulations, provided that any such replacement shall not result in increased floor area, height, length or any other increase in the size of the facility.
e) Except as otherwise provided in this section with regard to replacement or reconstruction of a portion of a facility to its previous noncomplying condition, all reconstruction shall be subject to all applicable laws, regulations, and procedures otherwise governing construction on the site at the time said construction is undertaken.

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

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

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

Finally, the appellant asserts that their project does not involve the relocation of GFA but instead involves the demolition of GFA on the upper floor and a separate enlargement on the ground floor. This argument attempts to conceptually separate the removal and addition components of the project. However, if treated independently, the ground floor expansion would constitute a prohibited increase in noncompliance. The appellant’s position relies on Item 16
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linking the two elements to claim there is no net change in the degree of noncompliance, an approach that selectively combines and separates aspects of the project depending on the desired outcome.

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

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

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

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

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

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

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

Jonathan Lait, Planning and Development Services Director Item 16
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PLANNING & DEVELOPMENT SERVICES

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

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

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

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

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

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

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

PAMC Section 18.70.080: Noncomplying Facility – Enlargement Section 18.70.080, subd. (a), expressly prohibits any improvement to a noncomplying facility that increases the noncompliance. If further clarifies that it does not prohibit improvement of a facility, Docusign Envelope ID: 3A798A6F-1F4E-4D19-8275-72D1C645C1F0 Item 16
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otherwise permitted by Title 18 (the zoning code), which does not affect the particular degree or manner of the noncompliance.

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

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

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

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

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

PAMC Section 18.70.100: Noncomplying Facility – Replacement Section 18.70.100 governs the reconstruction of a noncomplying facility that is damaged or destroyed by any means other than ordinary wear and tear. This includes willful damage and destruction as part of a Docusign Envelope ID: 3A798A6F-1F4E-4D19-8275-72D1C645C1F0 Item 16
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construction project as well as non-willful means.1 The general rule expressed this section is that a damaged or destroyed noncomplying facility may only be reconstructed as a complying facility unless an enumerated exception applies.

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

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

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

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

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

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

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

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

18.70.100 Noncomplying facility - Replacement.

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

Dear Mayor Lauing and Members of the City Council:

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

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

Background on Our Proposed Project

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

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

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

Analysis

Relevant Law and the Standard of Review

When interpreting an ordinance, courts apply the same rules of interpretation applicable to statutes. See Save Our Heritage Organisation v. City of San Diego (2015) 237 Cal.App.4th 163, 174, 187 Cal.Rptr.3d 754.). Courts first examine the language of the ordinance, giving the words their usual and ordinary meaning, in the context of the ordinance as a whole and its purpose. See Audio Visual Services Group, Inc. v. Super. Ct., 182 Cal. Rptr. 3d 748, 754 (Cal. App. 2d Dist. 2015). In addition, courts “apply common sense to the language at hand” and interpret a Item 16
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2 provision in a manner that makes “it workable and reasonable” and avoids an absurd result.

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

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

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

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

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

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

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

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

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

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

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

But the term “relocation” appears nowhere in the text of Section 100. It is clearly improper for the Director to insert new terms and limitations in existing Code. If the City wishes to revise the Code it is of course free to do so after complying with State and locale procedure for such modifications. Until then, the Planning Department is obligated to apply the Code as written. See CCP § 1858 (“In the construction of a statute or instrument, the office of the Judge is simply to ascertain and declare what is in terms or in substance contained therein, not to insert what has Item 16
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4 been omitted, or to omit what has been inserted; and where there are several provisions or particulars, such a construction is, if possible, to be adopted as will give effect to all.”).3

Our Project Is In Full Compliance with § 18.70.080

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

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

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

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

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

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

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

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

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

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

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

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

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

Relief Requested

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

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

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

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

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

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

Respectfully submitted,

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

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7 Appendix
Relevant Provisions of the Palo Alto Municipal Code

18.70.100 Noncomplying facility - Replacement.

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

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

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

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

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

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Colleen and Joseph Petersen
3886 Magnolia Drive
Palo Alto, CA 94306

August 3, 2025

City Council
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301

Subject – Appeal of Director’s Application of PAMC § 18.70.100 to Project Concerning 3886 Magnolia Drive, #25BLD-00025

Dear Mayor Lauing and Members of the City Council:

Thank you for the opportunity to be heard at the August 18, 2025 Council meeting regarding the Director’s May 8, 2025, Interpretation Regarding Relocation of Noncomplying Residential Gross Floor Area Under PAMC Chapter 18.70 (the “Determination”). The Planning Department, on the sole basis of the Determination, has preliminarily denied our application for a very modest remodel of our home in Barron Park. That remodel is designed to convert our home to a one story residence in the interest of allowing us to “age in place” in a home built in 1948 in full compliance with Santa Clara county building code, long prior to Palo Alto’s annexure of our section of the City of Palo Alto.

Introduction and Summary of Issue

Our home is currently two stories. Our second story is quite small and is essentially a permitted loft space that is accessed through a very steep and narrow staircase (as a shorthand, we will refer to it here as the “existing second-floor room”).

Our project is designed to convert our home fully into a single-floor home (in that respect, it has far less neighborhood impact than the many second story additions routinely processed by the Planning Department). Essentially, the aim of the project is to create a closet in the room that we are using as our primary bedroom and relocate some utilities, such as the laundry and additional kitchen and cleaning storage, to a permitted rumpus room and provide interior access to that room from our existing kitchen.

We designed our project to comply with existing Palo Alto planning and building code.

Specifically, Palo Alto Municipal Code § 18.70.080 expressly permits “enlargements” of noncomplying facilities provided they do not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.” § 18.70.080 (emphasis added). Our project does not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title” because it does not: (i) enlarge the lot coverage or add total floor area. In fact, it reduces FAR by 11 square feet by eliminating the upstairs loft and building out on the first floor less square footage than we are removing from the second floor.

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2 Nonetheless, the Director has delayed the application for many months on the basis of the Department’s relatively new interpretation of a different provision, § 18.70.100. That section, on its face, is applicable to noncomplying facilities that are damaged or destroyed and the owner seeks to reconstruct that portion.

Notwithstanding the fact that this provision is facially inapplicable to my project and does not override § 18.70.080 either explicitly or implicitly, the Department has invoked it and has refused to allow my application to proceed. There are two very significant flaws with the Department’s interpretation.

First, it has no support in the actual language of § 18.70.100 (the full text of which is appended below). The Department’s grafting of additional restrictions in Section 100 effectively nullifies the standard governing “enlargements” in Section 80.

Second, even the Department viewed Section 100 as having no such limitation until relatively recently. An e-mail produced by the City pursuant to a California Public Records Act request confirms that the City actually expressly permitted projects such as mine until September, 2016 and then abruptly abandoned that practice without seeking any changes to the actual language of § 18.70.100 (or even seeking any guidance from the Council). A copy of this e-mail is attached and the relevant language reads as follows:

In the past, staff has permitted homeowners to remove square footage from one part of a house and add it back to another portion when the property was over FAR. This was done on a case by case basis and there was criteria to ensure the new square footage would be less impactful. Unfortunately, while this was a long standing staff policy, there is no provision in the code that allows this type of “cut and paste”. Therefore “cut and paste” is officially dead! Please ensure all projects conform to Code Section 18.70.

Email from Jodie Gerhardt, Development Center Manager, September 23, 2016.

In fact, Ms. Gerhardt had it backwards and the City’s prior interpretation of § 18.70.100 was the correct one because it simply does not speak to remodeling projects such as mine and has no language supporting the City’s new interpretation. Instead, Section 80 applies and it authorizes our modest project because that project does not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.”

Finally, we note that in the days prior to our appeal appearing on the Consent Calendar the City advised us that it was willing to amend the Code in a manner that would authorize projects like ours under a de minimis exception. We are grateful for that positive step and proposed that this appeal be suspended pending adoption of the exception but the City was not willing to agree to any sort of timeline on the amendment. Since we are literally “not getting any younger” and without any assurances on timing of the amendment, we believe we have no choice but to move forward with our appeal. We, along with similarly situated homeowners, eagerly await Council’s position on the Director’s Interpretation and thank the Council for its consideration of our appeal.

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3 Executive Summary

Relief Requested: Reverse the May 8, 2025 Determination and direct ministerial processing of Permit #25BLD-00025.

Basis: PAMC § 18.70.080 permits the proposed work because it does not increase the particular degree or manner of noncompliance. PAMC § 18.70.100 applies only when a damaged or destroyed noncomplying portion is replaced or reconstructed; here, the noncomplying second- floor room is being removed—not replaced or reconstructed—and thus § 18.70.100 does not constrain the new first-floor work, which is instead evaluated under § 18.70.080.

Support: (i) the text of PAMC § 18.70.100; (ii) 2016 staff email stating that PAMC § 18.70.100 does not bar reconfiguration of floor area within the same nonconforming structure where the degree or manner of noncompliance is not increased; (iii) plan-set metrics table below demonstrating no increase.

Before/After Zoning Metrics (Attach as Exhibit A)
Metric Existing Proposed
Lot Area (sf) 8,100 SF No Change
Allowable GFA (sf) 3,180 SF No Change
GFA (sf) 3,455.30 SF 3,444.06 SF
FAR 3,455.30 SF = 42.65% 3,444.06 SF = 42.52%
Site Coverage (%) 3,922.39 SF (48.42%) 3,912.53 SF (48.30%) Setbacks (F/R/S) (ft) 20’-2”/45’-1”/ 4’-10” No Change/43’-1”/ 4’-10” Height / Daylight Plane 18’-5”/(E) Non-
Conforming gable on L
Side to Remain
NO Change/No Change
Parking
(covered/uncovered)
1/1 tandem

No Change

Analysis

Relevant Law and the Standard of Review

When interpreting an ordinance, courts apply the same rules of interpretation applicable to statutes. See Save Our Heritage Organisation v. City of San Diego, (2015) 237 Cal.App.4th 163, 174, 187 Cal.Rptr.3d 754.). Courts first examine the language of the ordinance, giving the words their usual and ordinary meaning, in the context of the ordinance as a whole and its purpose. See Item 16
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4 Audio Visual Services Group, Inc. v. Super. Ct., 182 Cal. Rptr. 3d 748, 754 (Cal. App. 2d Dist. 2015). In addition, courts “apply common sense to the language at hand” and interpret a provision in a manner that makes “it workable and reasonable” and avoids an absurd result.

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

Interpretation of the Municipal Code presents a pure question of law and as such the Director’s interpretation is entitled to no deference. See MacIsaac v. Waste Management Collection & Recycling, Inc. (2005) 134 Cal.App.4th 1076, 10. See also Manriquez v. Gourley, 130 Cal. Rptr. 2d 209, 214 (Cal. App. 4th Dist. 2003) (review of an agency’s factual determinations are subject to the substantial evidence rule but “where … the determinative question is one of statutory or regulatory interpretation, an issue of law, [courts] may exercise … independent judgment.”). 1 If we are forced to proceed with an appeal to Santa Clara Superior Court, the City would face the prospect of a significant award of attorneys’ fee award as we would be seeking to vindicate the public’s interest in the proper interpretation of the Palo Alto Municipal Code. See CCP § 1021.5 (“Upon motion, a court may award attorneys’ fees to a successful party against one or more opposing parties in any action which has resulted in the enforcement of an important right affecting the public interest …”). Also, in litigation the Planning Department would be subject to discovery aimed at determining whether it is invoking Section 100 even-handedly to small remodels like ours (this issue is also the subject of a pending request under the California Public Records Act and I respectfully reserve the right to update the Council once the City has produced adequate records in response to our request).
2 The Director’s Determination

The Director largely bases his rejection of our plan on Section 18.70.100. 3 That section governs
reconstruction of a residential structure that already exceeds current zoning limits and is

1 The Department has argued that it is entitled to some degree of deference when interpreting the City’s own municipal code. While this may be correct as a general matter, that principle should not apply here when the Department’s interpretation has no grounding in the actual language of the Code and the Department followed the exact opposite interpretation prior to its unexplained about-face in 2016 (see Ms. Gerhardt’s September 23, 2016 e-mail). 2 Indeed, if Section 100 applies to our small project the Planning Department would necessarily have to reject every single remodel of any noncomplying facility (action which would invite a cascade of litigation centered on unlawful taking of property). Judging by the number of projects that are ongoing in Barron Park every day of the week, not even the Planning Department is taking such a restrictive view of Section 100. Indeed, and to its credit, the Planning Department attempted to get some clarity around the meaning and scope of Section 100 back in 2015 but that effort did not gain traction with the members of the City Council at that time. See City Council Staff Report # 6333. We suspect that the Planning Department would benefit from and even appreciate this Council’s guidance on this important issue.

3 Until the Determination was issued on May 8, 2025, the Director entirely rested his rejection on Section 100. In the Determination, he attempts to buttress the rejection with a new claim that we Item 16
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5 damaged or deliberately demolished, and it generally (and sensibly) requires that if that facility is “replac[ed]” or “reconstruct[ed] that such replacement or reconstruction not reinstate the noncompliance. The full text of that provision is appended below with relevant highlighting.

We are clearly not “replacing” or “reconstructing” the existing second-floor room. We are converting it to attic space and not replacing or reconstructing it. The Director would be correct if we were altering the existing second-floor room and keeping it as loft space. But that is not our plan.

Since we are not replacing or reconstructing the existing second-floor room, Section 100 is inapplicable because it only governs replacing or reconstructing space (see highlighting below).

This is for the simple and unmistakable reason that Section 100 applies to replacing or reconstructing a portion of a noncomplying facility and we are not replacing or reconstructing the existing second-floor room. The ordinary dictionary definition of replace is “to restore to a former place or position.” See https://www.merriam-webster.com/dictionary/replace . The
ordinary dictionary definition of “reconstruct” is “to build or assemble (something) again.” See https://www.merriam-webster.com/dictionary/reconstruct. Our project does not restore the existing second-floor room nor does it assemble it again. As such, Section 100 is wholly inapplicable and the Director has invoked it erroneously.

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

do not satisfy Section 80. This late argument clearly suggests that the Director lacks confidence in his application of Section 100. In any event, the Director’s belated interpretation of Section 80 suffers from the same type of flaw that infects his analysis of Section 100, namely that he inserts terms that are not found in the text of the Code (see infra at 6).

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6 Code it is of course free to do so after complying with State and local procedure for such modifications. Until then, the Planning Department is obligated to apply the Code as written. See CCP § 1858 (“In the construction of a statute or instrument, the office of the Judge is simply to ascertain and declare what is in terms or in substance contained therein, not to insert what has been omitted, or to omit what has been inserted; and where there are several provisions or particulars, such a construction is, if possible, to be adopted as will give effect to all.”). 4 Our Project Is In Full Compliance with § 18.70.080

Fortunately, the Palo Alto Municipal Code has a provision that is specifically crafted to provide Palo Alto homeowners with homes that do not comply with current code (which is in fact a significant percentage of homes in Palo Alto) with much needed breathing room to update and modernize their homes. Section 80 allows “enlargements” of facilities so long as they “do not increase the degree or manner of noncompliance.”

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

The Director’s logic invents a brand new metric—location—that appears nowhere in §§

18.70.080, 18.70.090, and 18.70.100. Under the plain meaning rule, his attempt to graft new terms into existing code should be rejected. See Cnty. of Sacramento v. P. Gas & Elec. Co., 238 Cal. Rptr. 305, 311 (Cal. App. 3d Dist. 1987) (“Where the language is plain and admits of no more than one meaning, the duty of interpretation does not arise, and the rules which are to aid doubtful meanings need no discussion.”) (quotation omitted); see also Franklin v. Appel, 10 Cal.

Rptr. 2d 759, 765 (Cal. App. 2d Dist. 1992) (“The court will not, under the guise of construction,

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

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7 rewrite a law, and will not give the words an effect different from the plain and direct import of the terms used.”).

Thus, there is no question that our project comports with Section 80. There is also no question that had we submitted our application prior to Ms. Gerhardt’s September 23, 2016 e-mail abruptly reversing its longstanding interpretation without citation to the applicable code text, the project would have been quickly approved.

Indeed, during the application process the Planning Department based its rejection of our plan solely on Section 100. It was only in the Determination that the Director first claimed that we do not satisfy Section 80 as well (as noted above in footnote 2, the last-minute citation to Section 80 likely reflects the Director’s growing realization that Section 100 is not in fact applicable to our project).

Here as well the Director must apply the Code as written and not language that the Director apparently wishes it contained. While we appreciate the Department’s commitment to approve our project in the future under a de minimis exception, our project satisfies current code and no such amendment is necessary.

Conclusion

In sum, and viewing the provisions “holistically” (as the Director purports to do), Section 80 allows “enlargements” of noncomplying facilities provided they do not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.” § 18.70.080 (emphasis added). Section 100 applies when a property owner seeks to replace or reconstruct a non-complying facility or a portion of a non-complying facility. § 18.70.100 (emphasis added). The Department properly recognized this distinction in its interpretation until Ms. Gerhardt’s announcement of a materially different approach, one that was not based on the actual language of the Code and one which constituted a significant and unexplained departure from past practice.

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

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8 Relief Requested

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

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

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

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

Sincerely,

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

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9 Appendix
Relevant Provisions of the Palo Alto Municipal Code

18.70.100 Noncomplying facility - Replacement.

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

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

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

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

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11 Item 16
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: City Manager
Meeting Date: August 18, 2025
Report #:2508-5034
TITLE
2025 City Council Priorities and Objectives Q2 Update

RECOMMENDATION
This is an informational report that provides progress updates on the 2025 Council Priorities and Objectives approved by the City Council on May 5, 2025. No action is needed.

BACKGROUND
On January 25, 2025, the Council held its annual retreat to approve the 2025 Council Priorities.1 The Priority Setting Guidelines define a priority as a topic that will receive unusual and significant attention during the year. At the conclusion of the retreat, the City Council approved the following priorities:
Climate Action and Adaptation, & Natural Environment Protection Economic Development & Retail Vibrancy
Implementing Housing Strategies for Social & Economic Balance Public Safety, Wellness & Belonging
Over a series of meetings, the Council reviewed the proposed Objectives and on May 5, 2025, Council approved all the 70 Objectives meant to reflect potential Council actions, be measurable and time-bound to make real progress in advancing Council Priorities.2 These are summarized in Attachment A of the report.

ANALYSIS
Progress on Council Priorities is measured by the accomplishments of its subset objectives and reported on a calendar quarterly basis. Calendar Q2 spans the months January through June 1 January 25, 2025 City Council Annual Retreat:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=15926 2 City Council Meeting, May 5, 2025:
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2025. A summary table of all 70 objectives is listed in Attachment A, including an estimated completion date, which is also measured in calendar quarters. A narrative on each objective update is found in Attachment B, it includes:

Project Description- Describes overall project goals and outcomes which may span beyond the calendar year.
2025 Milestone- Describes activities and outcomes planned for the calendar year as some projects are multi-year in length and are broken up into phases.

Project Status-
Completed - Project as described in the 2025 milestone is overall complete, though some minor/non-substantive follow-up may still be needed. On-Track- Project is expected to be completed as specified. Any changes in project scope or timing due to Council direction or action will remain labeled On Track with the new estimated timeframe.
Behind - The project estimated completion date may be delayed due to operational issues, capacity constraints (such as vacancies in staffing), or project has not started by the estimated completion date.
Hold/Dropped - Project is not actively in progress or will no longer move forward in the current year. Reasons may include the issue is no longer relevant, operational constraints, or is stalled/dropped due to council direction.

Estimated Completion - The calendar quarter in which the objective is expected to be completed.

Department Lead - Identifies the lead department and project manager responsible for coordinating progress.

Quarterly Update - a brief progress update on the project describes work reflected in the respective calendar quarter. Any delays or project issues will be reflected in this section.

To date, of the 70 Council objectives supporting Council priorities, in the second quarter, a total of 14 (20%) have been completed, 52 (74%) are on track with original scope or with new Council direction, 3 (4%) are behind, and 1 (1%) is on hold. Objectives with a revised estimated completion date are notated with an asterisk (*) in the revised estimated completion quarter and explanation in the Quarterly Update section of the objective summary in Attachment B.

Council Priority Completed
On
Track Behind
On Hold/
Dropped Total
Climate Action and Adaptation, &
Natural Environment Protection 4 20 0 0 24
Economic Development & Retail
Vibrancy 3 6 2 1 12
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Implementing Housing Strategies for
Social & Economic Balance 5 15 0 0 20
Public Safety, Wellness & Belonging 2 11 1 0 14
TOTAL 14 52 3 1 70

FISCAL/RESOURCE IMPACT
Resource impacts for the objectives’ 2025 milestones have mostly been identified and resourced through the FY 2025 and FY 2026 budget processes; however, any changes to scope may result in additional resources needed. Staff will assess any scope changes and bring forward recommendations for additional resources if needed as part of the FY 2026 Mid-Year Budget Review.

STAKEHOLDER ENGAGEMENT
On May 2025, Council approved the community engagement strategies associated with the 2025 Priorities and Objectives. There are various levels of community engagement and communication strategies to support each project, including internal coordination among City departments.

The City uses the International Association for Public Participation (IAP2) as a guide to structure community participation and align that participation with the type of input or feedback needed based on the project/issue. Workplan engagement typically fit within these general focus areas:

Inform: Fact sheets, webpages, blog posts, information sessions, open houses, frequently asked questions, community briefings, and website feedback forms Consult & Involve: Surveys, focus groups, questions and answer sessions, office hours, public meetings like community meetings, town halls, panel discussions, workshops, and polling Collaborate & Empower: Working groups, ad hoc groups, feedback groups, boards, commissions and committee meetings, community advisory panels, advisory groups, digital engagement platforms, and voter ballot measures.

ENVIRONMENTAL REVIEW
The Council informational report on this item is not a project as defined by CEQA because the Council review of 2025 Priority Objectives is continuing administrative or maintenance activity.

CEQA Guidelines section 15378 (b)(2).

ATTACHMENTS
Attachment A: 2025 Council Priorities and Objectives Summary Table Attachment B: 2025 Council Priorities and Objectives Q2 Update APPROVED BY:

Ed Shikada, City Manager
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1X Complete construction of initial pilot area of electric grid modernization. Project will increase electrical capacity and reliability in initial pilot area bounded by Louis, Amarillo, 101, & Embarcadero about 1,200 homes; once completed, staff will continue the grid upgrades to the "Phase 1" area which impacts approx 6,000 homes. (16)
X
2X X Begin construction of the Newell Road Bridge Replacement project. Award of a construction contract for the replacement of Newell Road Bridge in time to begin construction taking advantage of the 2025 in‐channel construction season. (32) X
3X X Begin construction of Hamilton Avenue storm drain system capacity upgrades project. Prioritization of the Hamilton Avenue project from the list of 2017 ballot measure priority projects will increase the ability of the storm drain system to convey water in the event of a San Francisquito Creek overflow. (31) X
4X Complete implementation of the Reliability and Resiliency Strategic Plan, including Strategy 4 – conducting a cost/benefit analysis of flexible energy resources such as battery storage and microgrids (including evaluation of the airport microgrid), and Strategy 5 – recommending potential programs for Council consideration.

X
5X Complete deployment of 65,000 residential Advanced Metering Infrastructure (AMI) meters by end of FY 2025 and begin deployment of commercial AMI meters. (13)
X
6X Council approval for Phase 2 (full service program) of the Advanced Whole Home Electrification Pilot Program and begin implementation. (19) X 7X Develop and obtain Council approval for strategies and a 2026/2027 work plan for the next phase of S/CAP implementation of climate and sustainability goals.

X
8X X Begin development of a Regional Shoreline Adaptation Plan meeting new standards approved by BCDC. Engage with neighboring cities for potential partnership and review status with the City Council. (33) X
9X Council consideration of an ordinance implementing updated Stream/Creek Corridor Setback requirements. (34) X 10 X Council consideration of an ordinance implementing Bird Safe Glass & Wildlife Light Pollution Protections standards. (35) X* 11 X X Advocate for the San Francisquito Creek Flood Protection capital project (Reach 2) through Council’s JPA representation and any Council approvals involved. (31)
X
12 X Initiate Preliminary Engineering and Environmental Clearance Work for Quarry Road Extension in Partnership with Stanford University, Caltrans, & VTA. X 13 X Develop an updated Regional Water Quality Control Plant Biosolids Facility Plan. Complete initial work to develop plan, including consideration of PFAS pollutants and the Measure E site, and review with a Council committee in advance of Council acceptance of the plan in late 2025 or early 2026.

X
14 X X Council Adoption of the Safe Streets for All (SS4A) Safety Action Plan. Informed by feedback from the Policy & Services Committee, bring forward a Safety Action Plan providing a roadmap for eliminating traffic deaths and severe injuries through the reduction of vehicle miles traveled enabling staff to seek grant funding for implementation. (14)
X
15 X X Council Adoption of the 2025 Bicycle and Pedestrian Transportation Plan (BPTP). Consideration of the Draft BPTP Update, informed by public feedback for City Council adoption. (15)
X
16 X X Refine Grade Separation Design Alternatives per Council Direction and Conduct Outreach to Support Rail Committee Review of Locally Preferred Alternatives.

Review advanced alternatives to minimize right of way impacts and improve traffic circulation, conduct outreach, and develop conceptual plans (15% design) for each of the three crossings. (30)
X
Advance active and sustainable transportation
Climate Action and Adaptation, & Natural Environment Protection (CA) Modernize critical infrastructure for climate resilience Advance citywide and regional climate adaptation and environmental protection strategies 2025 CITY COUNCIL PRIORITIES AND OBJECTIVES
Council Priority

OBJECTIVES
(70 in total)
Q1
Q2
Q3
Q4

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2025 CITY COUNCIL PRIORITIES AND OBJECTIVES
Council Priority

OBJECTIVES
(70 in total)
Q1
Q2
Q3
Q4
17 X X Identify locations and design concepts for additional east‐west bicycle and pedestrian crossings of the Caltrain railroad tracks in the southern part of the city. X 18 X Complete E‐Mobility Strategic Plan for Council acceptance. Develop, approve and implement the Plan which reflects feedback on strategies reviewed by the Council Ad Hoc Climate Protection Committee and its Working Group. (21) X
19 X Propose an updated multifamily EV charger program (EV 2.0) for Council approval. X 20 X Develop and begin implementing a City Facility Electrification Plan. Building on the citywide Facilities Assessment, create a multi‐year plan to begin replacing fossil fuel use in City buildings in alignment with S/CAP goals, and begin implementing through the Capital Improvement Program. (19) X
21 X X Implement plan for phaseout of leaded fuel at Palo Alto Airport. With unleaded fuel now available at the airport, implement plan to conduct lead monitoring, encourage and track use of the fuel, explore potentially subsidizing the cost of unleaded fuel, and develop updated lease requirements to promote unleaded fuel . (77)
X
22 X Share preliminary analysis of strategies for a physical and financial transition of the gas utility to relevant policymakers and stakeholders. Utilize initial subject matter expert work that developed a minimum future gas grid need for system retirement to analyze alternatives for scaling down the gas distribution system. (17)
X
23 X Present an ordinance to Council enacting the 2026 California Building Standards Code update, including the California Green Building Standards Code; submit to the California Building Standards Commission for approval.

X
24 X Develop an Advanced Commercial Rooftop HVAC Pilot Program proposal and review with the Climate Action and Sustainability Ad Hoc Committee for recommendation to Council. (20)
X
25 X X Council approval of outdoor activation guidelines for California Avenue. Council approval of outdoor activity guidelines informed by continued engagement with stakeholders on a refined priorities and recommendations and Initiate implementation. (2) X*
26 X Council approval of a final signage plan for California Avenue and funding appropriations. Review the signage plan for California Avenue with the Architectural Review Board (ARB), incorporate feedback, and seek Council approval to implement the plan. (2) X*
27 X Council approval of a design option for California Ave. Engage stakeholders to refine alternative street designs for California Avenue and present them to Council for discussion and action, including funding appropriations to pursue a street design. (3) X*
28 X X Propose and implement outdoor activation guidelines for Car‐Free Ramona Street. Initiate implementation of Council approved outdoor activity guidelines informed by continued engagement with stakeholders on a refined priorities and recommendations.

X*
29 X Council approval of Ramona Street design and funding appropriations. Engage stakeholders to develop design proposals for Car‐Free Ramona Street and present to Council for necessary funding appropriations to implement initial phase(s). (4) X*
30 X Resume work on new parking structure in Downtown core (Lot D). Staff will present parking garage design options to City Council for selection. (8) X 31 X X Council approval of funding to continue Downtown cleanliness enhancements and other medium‐term investments. Include necessary proposals and budget appropriations as part of the development of the FY 2026 Operating Budget to continue enhanced Downtown Cleanliness enhancements and other medium‐term investments such as a Mobility Hub.

X
32 X X Begin feasibility analysis of Assessment District for University Avenue Streetscape. Conduct analysis to determine practicality of an assessment district or similarly funding strategy as a funding mechanism for capital enhancements to University Avenue Streetscape.

X
Promote clean energy and reduce fossil fuel dependence
Economic Development & Retail Vibrancy (ED)
Activate and enhance key commercial districts

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2025 CITY COUNCIL PRIORITIES AND OBJECTIVES
Council Priority

OBJECTIVES
(70 in total)
Q1
Q2
Q3
Q4
33 X Complete build‐out of fiber‐to‐the‐premises (FTTP) pilot Phase 1 with grid modernization. Complete building out of a reliable and high‐speed municipal fiber service in a pilot area and work to establish internet service provider operations including necessary business tools such rate setting, billing and operations software to roll out services in the initial build. (9) X
34 X Council consideration of an ordinance that expands retail opportunities and promotes retail resiliency. Consider further refinement to retail and retail‐like definition and explore changes to retail preservation ordinance. (12) X
35 X Council consideration of an ordinance restoring subjective wireless communication facility regulations. Hold a public hearing on a draft ordinance implementing the City Council's direction from late 2024 to eliminate objective standards for the placement of wireless antennas within the public right of way on street light or utility poles.

X
36 X Refine destination marketing efforts and enhance Palo Alto’s international reputation. Meet with hospitality partners and incubator/accelerators to assess willingness to partner with the City on destination marketing efforts and propose next steps, including necessary appropriation actions, to City Council.

X
37 X Prepare an ordinance for Council review expanding the housing focus area. Increase housing development potential along El Camino Real and consideration of an exemption from payment of development impact fees for inclusionary units under certain circumstances, consistent with Housing Element Program 3.4 E. (41) X
38 X Present to Council an ordinance updating the City’s housing incentive program. Increase housing development potential and expand provisions to multi‐family zoning and other commercial districts in accordance with Housing Element Program 3.4 D. (46) X
39 X Prepare an update to the City's accessory dwelling unit ordinance. Update local implementation regulations to respond to changes in State Law, consistency with the State Housing and Community Department's 2025 ADU Handbook and address applicable deficiencies identified in HCD's comment letter.

X
4 0XXXX Initiate the San Antonio Road Area Plan. Begin data gathering, document review, implementing a community outreach and engagement strategy, check‐in meetings with appointed and elected officials, and review by the City Council of a community assessment report and receive updated project direction, consistent with Housing Element Program 6.6 C. (40)
X
41 X Partner with Santa Clara County Housing Authority to achieve construction timeline milestones for the Palo Alto Homekey project (which will provide transitional housing and services for unhoused residents). (51) X
42 X Identify different housing typology options for the one‐acre site near Matadero Creek. Use grant funded technical analysis to consider housing options for a future affordable housing development on land to be dedicated to the City from the 2023 Sobrato/City Development Agreement; present findings and receive direction from Council.

X
43 X Prepare the Community Development Block Grant (CDBG) 5‐Year Consolidated Plan and Annual Action Plan. The Quinquennial update helps jurisdictions to assess affordable housing and community development needs and market conditions to make data‐driven, place‐based investment decisions when distributing federal CDBG grant funds.

X
44 X X Advance affordable housing project on Downtown surface parking lot (Lot T). Enter into an exclusive negotiating agreement with Alta Housing; receive an updated project concept design & prescreening application for Council review; receive formal planning entitlement application, consistent with Housing Element Program 1.4 A. (8)
X
Enable housing production through zoning and regulatory reform Advance affordable housing developments
Implementing Housing Strategies for Social & Economic Balance (IHS) Support economic development and retail vibrancy

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2025 CITY COUNCIL PRIORITIES AND OBJECTIVES
Council Priority

OBJECTIVES
(70 in total)
Q1
Q2
Q3
Q4
45 X X Work with the Santa Clara County Housing Authority to determine next steps to maintain affordability and improve conditions at Buena Vista Mobile Park. (56) Meet with Housing Authority regularly to identify feasible next steps. Review financing approach and options. Update Council on identified, proposed next steps and approach.

X
46 X Organize an initial review of sources and methods to raise funding to support new affordable housing production for future evaluation. Conduct research to identify and evaluate sources and methods. Work with Finance Committee to develop recommendations for City Council.

X
47 X Present a renter protection fair chance ordinance to Council. Present findings of an analysis and policy recommendations in the form of a draft ordinance to reduce barriers to housing by individuals with criminal records, consistent with Housing Element Program 6.6 I. (54) X
48 X Report out on initial data from the rental registry program and project implementation; receive feedback and recommendations for next steps. (57) X 49 X Present to Council an analysis related to anti‐rent gouging. Consistent with prior Council direction, examine implications of a possible ordinance from a legal, policy and anticipated resource demand perspectives; receive direction on next steps. (55) X
50 X X Present options to address homelessness impacts, particularly relating to individuals living in vehicles, to Policy & Services Committee for prioritization.

Identify feasible (1) regulatory approaches to manage the use of public space and (2) policy solutions to expand RV safe parking. Present options to P&S for consideration and prioritization. X
51 X Extend for one year or codify R1/SB 9 interim ordinance. Establish objective development standards and increases the maximum floor area for SB 9 units from 800 to 1200 square feet consistent with Housing Element Program 6.3A; consider implications of similar objective standards for R1 and SB 9 projects relative to the City’s Individual Review Program. (45)
X
52 X Initiate evaluation of South of Forest Area Coordinated Area Plan (SOFA) development standards. Review and explore options to amend the coordinated area plan with the intent to replace subjective development standards with objective standards consistent with Housing Element Program 3.7.

X
53 X Present to Council the Downtown Housing Plan Community Assessment report and receive Council direction on draft housing plan scenarios. Continue advancing the plan development and public engagement strategy to prepare draft housing plan and environmental review. (36) X
54 X Present an ordinance to Council that supports innovative housing structures. Creates zoning incentives or update development standards to support various housing typologies, including micro‐units, intergenerational housing, aging adults, students and lower‐income units, consistent with Housing Element Program

6.5. (48)
X
55 X X Present findings to Council on a study that explores code amendments reducing commercial floor area and possible extension of Downtown in‐lieu parking program to residential development: Evaluate opportunities that make multi‐family housing an attractive alternative to commercial office development, consistent with Housing Element Program 3.9. (50)
X
5 6XXXX Update development impact fees for public safety, government facilities, housing, transportation, parks, and community services. Conduct a nexus and feasibility study to ensure housing remains viable. Consider potential policy to waive impact fees associated with for low‐income inclusionary units with when 20% of the units are deed restricted. (Housing Element Programs 2.1B; 3.1 B&C) (Housing Element Programs 2.1B; 3.1 B&C) X
57 X Open the new Public Safety Building for daily Police, OES, and Fire services. Complete construction, move‐in of departments, and a ribbon‐cutting event to commemorate the official availability of public safety services from the facility for all. (72) X
58 X Council to adopt the updated Foothills Fire Management Plan and Community Wildfire Protection Plan. Plan to reflect alignment with Santa Clara County and other agencies and entities to address early warning technology, planning and procedural elements and risk mitigation. (71) X
Improve citywide housing policy and planning
Modernize public safety infrastrucutre
Support tenant protections and housing equity
Public Safety, Wellness & Belonging (PS)

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Council Priority

OBJECTIVES
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Q1
Q2
Q3
Q4
59 X Council approval of construction contract for Fire Station No. 4 Replacement project and initiation of construction. (73) X* 60 X Activate a fire engine at Fire Station 4. Augment staffing at Fire Station 4 to deploy either ambulance or fire engine response. X 61 X Initiate an update to the City’s seismic hazards ordinance. Conduct an assessment of previous study, update potentially eligible buildings, and begin work on seismic hazard identify and mitigation ordinance. (75) X
62 X Develop Master Plan for Cubberley site. Complete a master plan by December 2025 for 15 acres anticipated to be purchased from PAUSD pending a successful bond measure in November 2026 and begin community polling to inform the development of a ballot measure for voter consideration. (61) X
63 X Implement the 2024‐2025 Wellness & Belonging Action Plan. Complete the 28 action items in the action plan in collaboration with partners. X 64 X Open 445 Bryant Street Community Center. Complete construction and any necessary partnership agreements to begin La Comida Senior Lunch Program at the facility by end of July, 2025; plan further work for general community center operations concurrently. (64) X
65 X Enhance and Expand Inclusive Programs and Services. Enhance services to support individuals with disabilities seeking accommodation support, expand community partnerships that serve the disability community, and implement new therapeutic recreation programs .

X
66 X Implement New Expanded CSD Recreation Special Events Workplan. Approve and implement the Workplan which expands Community Special Events that foster togetherness, belonging and celebrate the rich diversity of our community (60) X
67 X Support Community Mental Health. Provide support for all ages through community partnerships, programs, and initiatives. (65) X 68 X Continue engagement with San Francisco Airport on SFO's Ground Based Augmentation System (GBAS) project and other potential opportunities to decrease SFO noise impacts on Palo Alto. (79)
X
69 X Council Approval of Quiet Zone Concept Plans at Churchill Ave, Meadow Drive, and Charleston Rd Rail Crossings. (76) X 70 X X Enhance safety and improve quality of life in commercial areas by reducing criminal activity through business engagement and the deployment of officers and technology. Establish a Business Watch program to enhance collaboration with businesses and assign two officers at a minimum to patrol high traffic commercial areas.

X
*Revised estimated completion date
Expand wellness and community serving facilities and services Promote environmental and transportation safety

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1 2025 Council Priorities & Objectives
Q2 Update January ‐June 2025

Overall Completion Status

Climate Action and Adaptation, & Natural Environment Protection (CA)

Modernize critical infrastructure for climate resilience CA 1. Complete initial pilot area of electric grid modernization (16) Project Manager: Jimmy Pachikara Lead Dept: UTL
Estimated Completion: Q2 Status: Completed
Project Description:

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2 The project will increase electrical capacity and reliability in initial pilot area bounded by Louis, Amarillo, 101, & Embarcadero about 1,000 homes; once completed, staff will continue the grid upgrades to the "Phase 1" area which impacts approximately 6,000 homes.

The City’s planned project includes the modernization of the systematic grid and incorporates the goals and key actions from the Grid Modernization Study to prepare for widespread electrification in support of the S/CAP goal of an 80 percent carbon reduction by 2030. This project is coordinated with the Fiber to the Home pilot.
2025 Project Milestones:

By the end of FY2025 staff intends to complete the pilot area of Phase 1.

Quarterly Update:

A total of 908 homes have been served with upgraded facilities that included the replacement of 70 wood utility poles, 106 new transformers, 22,650 feet of new low‐voltage wire, 46,743 feet of new fiber messenger. The cost to complete the pilot area was just over $10 million with contracted labor being the largest cost.

CA 2. Begin construction of the Newell Road Bridge Replacement project (32) Project Manager: Holly Boyd Lead Dept: PW
Estimated Completion: Q2 Status: Completed
Project Description:

Award of a construction contract for the replacement of Newell Road Bridge in time to begin construction taking advantage of the 2025 in‐channel construction season. 2025 Project Milestones:

Complete design and right‐of‐way acquisition, obtain regulatory permits, and seek programming of construction funding by Caltrans, through Council advocacy as needed, and award a construction contract, subject to property owner, permitting agencies, and Caltrans approvals.

Initiate and complete construction.

Quarterly Update:

Staff received authorization from Caltrans to advertise the project in April. After successfully bidding the project, Council approved a construction contract on June 16. Staff issued the notice to proceed on August 1, with pre‐construction activities to start on September 1. Construction will last for a year and a half and will be completed in Spring 2027.

CA 3. Begin construction of Hamilton Avenue storm drain system capacity upgrades project (31) Project Manager: Holly Boyd Lead Dept: PW
Estimated Completion: Q3 Status: On Track
Project Description:

Advance the San Francisquito Creek (SFC) Flood Protection capital project (Reach 2) through Council’s JPA representation and any Council approvals involved. Prioritization of the Hamilton Avenue project from the list of 2017 ballot measure priority projects will increase the ability of the storm drain system to convey water in the event of a San Francisquito Creek overflow. 2025 Project Milestones:

Begin construction of Hamilton Avenue storm drain system capacity upgrades project.

Quarterly Update:

The storm drain system design was completed in June, and the project was advertised for bid in late July. A construction contract is anticipated to be awarded in September.

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3 CA 4. Complete implementation of the Reliability and Resiliency Strategic Plan (RRSP), including Strategy 4 – conducting a cost/benefit analysis of flexible energy resources such as battery storage and microgrids (including evaluation of the airport microgrid), and Strategy 5 – recommending potential programs for Council consideration.

Project Manager: Jonathan Abendschein Lead Dept: PW
Estimated Completion: Q4 Status: On Track
Project Description:

The RRSP includes several long‐term and ongoing efforts that extend beyond this year, primarily in Strategies 1, 2, and 3. But Strategies 4 and 5 focus on a cost‐benefit analysis and program options for use of flexible technologies and efficient electrification strategies to provide various types of community value. This goal involves completion of Strategies 4 and 5 of the RRSP. 2025 Project Milestones:

In 2025, the Climate Action and Sustainability Committee (CASC) and the Utilities Advisory Commission (UAC) will review the cost‐benefit analysis and potential program options to complete Strategies 4 and 5 of the Resilient Resource and Sustainability Plan (RRSP). Following these reviews, the City Council will consider the recommendations and provide direction on any subsequent program implementation.

Quarterly Update:

A cost‐benefit analysis and program development are currently underway. A status update was provided to the Utilities Advisory Commission (UAC) in February 2025. A review of the preliminary analysis results is planned for the July UAC meeting and the August Climate Action and Sustainability Committee (CASC) meeting. The goal is to gather policy feedback to inform the final report recommendations, which will be presented to the UAC, CASC, and City Council in the fourth quarter of 2025.

CA 5. Complete deployment of 65,000 residential Advanced Metering Infrastructure (AMI) meters by end of FY 2025 and begin deployment of commercial AMI meters. (13) Project Manager: Dave Yuan Lead Dept: UTL
Estimated Completion: Q4 Status: On Track
Project Description:

The City of Palo Alto Utilities (CPAU) is upgrading the City’s utility metering system with electronic meters to utilize grid technology called Advanced Metering Infrastructure (AMI). AMI is becoming a standard in the utilities industry, enabling interval utility usage data and time‐of‐use rates for homes and businesses to the benefit of electric, natural gas, and water utility customers. CPAU will replace old legacy electric meters with new advanced electric meters and retrofit existing water and gas meters with AMI radios, starting with residential meters. 2025 Project Milestones:

A continuation from 2024 to deploy all 65,000 residential AMI meters, this work continues, as well as to deploy 10,300 commercial AMI meters by Q3 2025 assuming no supply chain delays.

Quarterly Update:

Due to supply chain issues affecting electric meters and challenges with exchanging or retrofitting gas and water meters, the City’s installation contractor concluded services in May 2025, leaving approximately 12,000 meters remaining. CPAU staff will complete the remaining exchanges and retrofits, with a target of reaching 95% completion by the end of 2025. The remaining 5% of electric and gas meter installations are expected to be completed by April 2026. Additional time will be needed to complete the final 5% of water meters due to field conditions, meter accessibility, and the need for large water meter replacements.

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4 CA 6. Council approval for Phase 2 (full‐service program) of the Advanced Whole Home Electrification Pilot Program and begin implementation. (19) Project Manager: Jonathan Abendschein Lead Dept: PW
Estimated Completion: Q4 Status: Completed
Project Description:

Add turnkey services to the City’s Advanced Whole Home Electrification Pilot Program to provide direct installation of space heating to complement existing turnkey services for direct installation of water heating.
2025 Project Milestones:

City Council approval of the contract and budget for the program, followed by the commencement of program implementation.

Quarterly Update:

A contract with Franklin Energy to operate turnkey services for the Advanced Whole Home Electrification Pilot Program, along with a program budget, was approved by the City Council on June 9, 2025. Implementation has begun.

Advance citywide and regional climate adaptation and environmental protection strategies
CA 7. Develop and obtain Council approval for strategies and a 2026/2027 work plan for the next phase of S/CAP implementation of climate and sustainability goals Project Manager: Christine Luong Lead Dept: PW
Estimated Completion: Q4 Status: On Track
Project Description:

Develop and approve an S/CAP Implementation Plan for 2026‐2027 which reflects feedback on strategies reviewed by the Council Climate Action and Sustainability Committee and the Climate Action Working Group.
2025 Project Milestones:

Work with the Council Climate Action and Sustainability Committee and the Climate Action Working Group to prioritize focus areas and strategies for future implementation.

Quarterly Update:

In May, the Climate Action and Sustainability Committee discussed options and ideas for the Climate Action section of the 2026‐2027 Sustainability and Climate Action Plan (S/CAP) Work Plan. The Committee reviewed high‐level potential areas of focus in the areas of transportation, buildings (including resiliency) and carbon neutrality. Also in May, the Climate Action Working provided feedback on options and ideas for the Climate Action section of the 2026‐2027 S/CAP Work Plan.

Staff is developing strategies for a 2026 –2027 work plan for the next phase of S/CAP implementation.

Proposed Sustainability priorities for the 2026‐207 Sustainability and Climate Action Plan Work Plan
are complete and will be presented to the Climate Action and Sustainability Committee in August. The key areas of focus for the Sustainability priorities are water, sea level rise, wildfire protection, natural environment, green stormwater infrastructure, and zero waste.

CA 8. Begin development of a Regional Shoreline Adaptation Plan meeting new standards approved by BCDC (33)
Project Manager: Julie Weiss Lead Dept: PW
Estimated Completion: Q4 Status: On Track
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5 Project Description:

Public Works–Watershed Protection is collaborating with Santa Clara County Office of Sustainability and other County cities to submit an SB1 grant proposal for the development of a Regional Shoreline Adaptation Plan (RSAP). The RSAP would include a regional vulnerability assessment for Santa Clara County shoreline communities and a subsequent shoreline adaptation plan that aligns with State sea level rise adaptation requirements that are administered by the Bay Conservation and Development Commission. This regional vulnerability assessment would complement Palo Alto’s similar assessment by providing an adaptation funding strategy, would determine the cost of inaction should Palo Alto not pursue additional sea level rise adaptations, and would expand social equity considerations. 2025 Project Milestones:

Engage with neighboring cities for potential partnership and review status with the City Council.  SB1 grant submittal: July, 2025
 Confirmation of grant award: Fall, 2025
Quarterly Update:

The SB1 grant proposal was submitted by the Santa Clara County Office of Sustainability in July 2025.

CA 9. Council consideration of an ordinance implementing updated Stream/Creek Corridor Setback requirements. (34)
Project Manager: Kelly Cha Lead Dept: PDS
Estimated Completion: Q3 Status: On Track
Project Description:

Conduct research and present an ordinance that implements the City’s Comprehensive Plan polices related to stream corridor setbacks for Planning and Transportation Commission (PTC) review and recommendation to the City Council.
2025 Project Milestones:

Hold a community meeting Q1, Planning and Transportation Commission (PTC) consideration of next steps in Q3 for Council consideration thereafter.

Quarterly Update:

The City held a community meeting on February 6, 2025. The stream/creek draft corridor setback requirements have been refined by staff based on comments received by community members. A draft ordinance is scheduled to be presented to the PTC on August 27, 2025.

CA 10. Council consideration of an ordinance implementing Bird Safe Glass & Wildlife Light Pollution Protections standards. (35)
Project Manager: Kelly Cha Lead Dept: PDS
Estimated Completion: Q3* Status: On Track
Project Description:

Prepare ordinance updates to the City’s zoning code to require new building design and lighting standards with the aim to reduce bird strikes and nighttime light pollution for new or substantially remodeled buildings/structures.
2025 Project Milestones:

Initially scoped as one project, the bird safe glass and wildlife light pollution protection standards are now two projects coming before Council at different time.  Lighting pollution standards was reviewed by the City Council in Q2 to return in Q3 for reconsideration.
 Bird friendly design standards will be going to the Planning and Transportation Commission (PTC) for reconsideration in Q3 and City Council consideration in Q4.

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6 Quarterly Update:

Lighting pollution standards: City Council considered a draft ordinance on April 7, 2025 and directed staff to revise the standards and return to the Council. The ordinance is schedule for City Council reconsideration on September 15, 2025.

Bird friendly design standards: Based on direction received from the PTC in late 2024, staff has evaluated the impacts of specific regulations. As a result of this analysis, staff will return to the PTC with a revised ordinance for consideration prior to City Council consideration.

*The lighting standards are anticipated to be completed on schedule (Q3). Based on the revised scope the estimated completion for the bird friendly design standards is now Q4.

CA 11. Advocate for the San Francisquito Creek Flood Protection capital project (Reach 2) through Council’s JPA representation and any Council approvals involved (31) Project Manager: Holly Boyd Lead Dept: PW
Estimated Completion: Q4 Status: On Track
Project Description:

Advance the San Francisquito Creek (SFC) Flood Protection capital project (Reach 2) through Council’s JPA representation and any Council approvals involved.
2025 Project Milestones:

Support JPA’s efforts to make decisions through staff discussions and the City’s representation on the JPA Board.

Quarterly Update:

Staff have reviewed JPA’s project documents and attended meetings to discuss Reach 2 progress. The JPA is scheduled to have a study session with Council in August or September 2025.

CA 12. Initiate Preliminary Engineering and Environmental Clearance Work for Quarry Road Extension in Partnership with Stanford University, Caltrans, & VTA.

Project Manager: Holly Boyd/Sylvia Star‐Lack Lead Dept: PW/OOT Estimated Completion: Q4 Status: On Track
Project Description:

The Quarry Road Connection Project will allow the extension of Palo Alto’s Quarry Road to create a direct connection between the Palo Alto Transit Center (PATC) and El Camino Real for use by public buses and shuttles (the Quarry Road Connection Project). This project enables transformation of a currently congested PATC by enhancing public transit efficiency, reducing traffic congestion, and improving safety and convenience for cyclists and pedestrians. 2025 Project Milestones:

Develop an agreement with Stanford to initiate a preliminary engineering and environmental clearance work for Quarry Rd Extension.

Quarterly Update:

Staff is working to generate an agreement between the City and Stanford to initiate design and environmental work which would be brought to Council in Fall of 2025.

CA 13. Develop an updated Regional Water Quality Control Plant Biosolids Facility Plan.

Project Manager: Karin North Lead Dept: PW
Estimated Completion: Q4 Status: On Track
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7 Project Description:

Complete initial work to develop plan, including consideration of PFAS pollutants and the Measure E site, and review with a Council committee in advance of Council acceptance of the plan in late 2025 or early 2026.
2025 Project Milestones:

Development of biosolids treatment alternatives and screening to eliminate non‐viable alternatives.

Finalize evaluation criteria, including weighting, based on community and stakeholder input. Begin detailed evaluation of the screened alternatives. Review findings and draft recommendations with SCAP and the Policy and Services Committees. Initiate development of a draft report summarizing the alternatives analysis and preliminary recommendations.

Quarterly Update:

Staff identified potential treatment alternatives, developed evaluation criteria, and completed an initial screening of the alternatives. Public input meetings were held in spring 2025. Based on the feedback received, the descriptions and weighting of the evaluation criteria have been adjusted to align more closely with community priorities. The next steps include developing lifecycle cost estimates, and continuation of the detailed evaluation of the six remaining biosolids treatment alternatives.

Advance active and sustainable transportation
CA 14. Council Adoption of the Safe Streets for All (SS4A) Safety Action Plan (14) Project Manager: Sylvia Star‐Lack Lead Dept: OOT
Estimated Completion: Q2 Status: Completed
Project Description:

Informed by feedback from the Policy & Services Committee, bring forward a Safety Action Plan providing a roadmap for eliminating traffic deaths and severe injuries through the reduction of vehicle miles traveled enabling staff to seek grant funding for implementation. (14)

The Safe Streets for All (SS4A) Safety Action
Plan aims to eliminate traffic deaths and life‐changing injuries on local streets. The Palo Alto Safety Action Plan is a roadmap for eliminating traffic deaths and severe injuries on local streets and achieving the city’s Sustainability and Climate Action Plan goals through the reduction of vehicle miles traveled.
2025 Project Milestones:

Finalize and adopt Safety Action Plan. Begin seeking grant funds for implementation.

Quarterly Update:

Council adopted the SS4A Safety Action Plan on June 2, 2025.

CA 15. Council Adoption of the 2025 Bicycle and Pedestrian Transportation Plan (BPTP) (15) Project Manager: Ozzy Arce Lead Dept: OOT
Estimated Completion: Q4 Status: On Track
Project Description:

The 2025 Bicycle and Pedestrian Transportation Plan (BPTP) represents a system of interconnected bicycle and pedestrian corridors, facilities, and programs that make biking and walking a more convenient form of day‐to‐day travel. The 2025 BPTP Update is an update to the 2012 BPTP, adjusting the bicycle network to reflect land use changes, roadway designs to improve comfort and safety, and policies that support active transportation and climate action plan goals. 2025 Project Milestones:

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8 Complete community engagement work and circulate the draft BPTP Update to the public for City Council adoption.

Quarterly Update:

The Recommended Bicycle Network, along with associated projects and programs, has been completed. The project team presented these recommendations at various public meetings, including sessions with the Palo Alto Bicycle Advisory Committee (PABAC), parents, the Planning and Transportation Commission (PTC), the Parks and Recreation Commission (PRC), as well as at tabling events, community events, and a community workshop.

On June 2, 2025, the City Council provided input on the revised Prioritization Framework and the related priority project lists. The project team will review and incorporate this feedback, along with public comments, into the forthcoming Draft Plan. The Draft Plan is expected to be released for public review in fall 2025.

CA 16. Refine Grade Separation Design Alternatives per Council Direction and Conduct Outreach to Support Rail Committee Review of Locally Preferred Alternatives (24) Project Manager: Ripon Bhatia Lead Dept: OOT
Estimated Completion: Q4 Status: On Track
Project Description:

Review advanced alternatives to minimize right of way impacts and improve traffic circulation, conduct outreach, and develop conceptual plans (15% design) for each of the three crossings.

Identify grade separated project alternatives for grade separation at Churchill Avenue, Meadow Drive, and Charleston Road crossings.
2025 Project Milestones:

Collaborate with Caltrain to procure the services of the consultant to review advanced alternatives to minimize right of way impacts and improve traffic circulation. Conduct outreach and develop conceptual plans (15% design) for each of the three crossings based on the guidance and direction provided by the Rail Committee and the City Council
Quarterly Update:

Staff is collaborating with Caltrain to refine the project alternative in preparation for public outreach and feedback. An item is planned for review by the Rail Committee at its September 2025 meeting.

CA 17. Identify locations and design concepts for additional east‐west bicycle and pedestrian crossings of the Caltrain railroad tracks in the southern part of the city.

Project Manager: Sylvia Star‐lack/Charlie Coles Lead Dept: OOT Estimated Completion: Q4 Status: On Track
Project Description:

This Project is referred to as the “South Palo Alto Bike/Ped Connectivity” Project. Project will engage with the community to select two preferred crossing locations, develop conceptual plans (15% designs), and identify bike/pedestrian network improvements, and develop an implementation plan and funding strategy for future construction.
2025 Project Milestones:

By Q4 2025, community engagement efforts will focus on identifying preferred crossing locations, design options, and related network improvements for east‐west bicycle and pedestrian grade crossings. A formal report summarizing these recommendations will be publicly circulated and Item A
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9 presented to the City Council for adoption in 2026. Subsequent steps will include pursuing grant funding for final design and construction.

By the end of Q4 2025, the public and committees will provide feedback on preferred crossing locations and design concepts.

Quarterly Update:

Phase 1 engagement, conducted in Q2 2025, introduced the project to the community and gathered input on goals and priorities for grade‐separated bicycle and pedestrian crossings. Feedback from Phase 1 will inform the design priorities for crossing alternatives, which will be presented during Phase 2 in Q3/Q4 2025.

CA 18. Complete E‐Mobility Strategic Plan for Council acceptance (21) Project Manager: Jonathan Abendschein Lead Dept: PWD
Estimated Completion: Q3 Status: On Track
Project Description:

The goal of this effort is to develop a strategic roadmap for the promotion of E‐mobility (which includes electric vehicles of all sizes from e‐scooters up to e‐trucks) and provision of supportive infrastructure.
2025 Project Milestones:

In 2024 staff developed an EV Charger Needs Assessment and draft strategies and actions for an E‐Mobility Strategic Plan and reviewed them with the Council Climate Action and Sustainability Committee (CASC) and its Working Group. In 2025 staff will finish writing the plan, seek Council acceptance, and begin implementation.

Quarterly Update:

At its June meeting the CASC recommended acceptance of the E‐Mobility Strategic Roadmap for Council approval with amendments to clarify wording and intent for various strategies and actions.

Staff intends to take the roadmap to Council for acceptance in Q3 2025.

CA 19. Propose an updated multifamily EV charger program (EV 2.0) for Council approval Project Manager: Rachel DiFranco Lead Dept: UTL
Estimated Completion: Q4 Status: On Track
Project Description:

The City’s first generation multifamily electric vehicle program has resulted in the installation of chargers in buildings representing 9.2% of the multi‐family units in Palo Alto. The State’s Advanced Clean Cars II regulations are driving rapid adoption of electric vehicles, however, and more charging will be needed for multifamily residents to support them. This program is meant to build on the successes of the first‐generation program and create an even better program that can extend to even more multi‐family buildings.
2025 Project Milestones:

Develop program business model for Council approval.

Quarterly Update:

Staff is developing the program and is targeting Climate Action and Sustainability Committee review in Q3 2025, with Council approval tentatively targeted in Q4.

Promote clean energy and reduce fossil fuel dependence CA 20. Develop and begin implementing a City Facility Electrification Plan (19) Project Manager: Gloria Yu Lead Dept: PWD
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10 Estimated Completion: Q4 Status: On Track
Project Description:

Building on the citywide Facilities Assessment, this project will design and implement the electrification of fossil fuel‐consuming systems in City buildings through the Capital Improvement Program. In alignment with the S/CAP, the project aims to reduce greenhouse gas emissions by transitioning gas‐fired equipment to electric alternatives, with upgrades to electrical service as needed.
2025 Project Milestones:

Issue a Request for Proposals (RFP), select a qualified design firm, and execute a contract to begin design and planning work for the electrification of fossil fuel‐consuming systems at City facilities.

Quarterly Update:

The Facility Assessment report and associated data are currently being analyzed to confirm priority facilities for initial electrification efforts. This evaluation will guide the upcoming design phase and ensure alignment with the City’s Sustainability and Climate Action Plan goals. Meanwhile, preparations are underway to issue the RFP (Request for Proposal) for selecting a design consultant.

CA 21. Implement plan for phaseout of leaded fuel at Palo Alto Airport. (77) Project Manager: Andy Swanson Lead Dept: PW
Estimated Completion: Q4 Status: On Track
Project Description:

With unleaded fuel now available at the airport, implement plan to conduct lead monitoring, encourage and track use of the fuel, explore potentially subsidizing the cost of unleaded fuel, and develop updated lease requirements to promote unleaded fuel. 2025 Project Milestones:

Develop and begin implementing a multi‐phase plan to phase out the use of leaded fuel.

Quarterly Update:

Airport staff have drafted updated lease requirements mandating that at least one Fixed Base Operator (FBO) at Palo Alto Airport offers unleaded aviation fuel. To further encourage the transition, the updated leases include a provision waiving the fuel flowage fee for unleaded fuel.

In addition, staff have researched options for continuous air monitoring of lead emissions at the airport. However, this effort has proven challenging due to the limited number of vendors capable of providing the specialized monitoring services required.

CA 22. Share preliminary analysis of strategies for a physical and financial transition of the gas utility to relevant policymakers and stakeholders (17)
Project Manager: Aaron Perkins Lead Dept: UTL
Estimated Completion: Q3 Status: On Track
Project Description:

This study evaluates the infrastructure needs and financial implications of operating the gas utility in the context of declining gas sales due to widespread electrification. The first phase, completed in late 2024, involved developing a gas system model that simulates changing flow patterns as electrification progresses. This model helps identify which sections of the gas system can be decommissioned first and assesses the potential impacts on the remaining infrastructure.

A complementary financial analysis is currently underway to simulate various levels of community electrification and evaluate the resulting effects on the gas utility’s operations and finances. The Item A
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11 physical model will support this analysis by identifying areas that, while theoretically eligible for abandonment, must remain in service to ensure system functionality. The simulations aim to estimate decommissioning costs, impacts on gas utility operating expenses, rate changes, indirect financial effects on other utilities, and implications for General Fund revenues. The results will inform policy options to help mitigate the financial burden on customers who have not yet electrified. 2025 Project Milestones:

A consultant completed development of a balanced gas system model in 2024. Initial results of the staff analyses are anticipated in Q3 of 2025, with completion and documentation of the study results by Q2 2026.

Quarterly Update:

Staff reviewed the methodology for the study with the Climate Action and Sustainability Committee in June 2025 and the Utilities Advisory Commission on July 9, 2025. Staff has retained consultants to simulate various levels of electrification and model the operational and rate impacts, with a substantial portion of the analysis to be performed in‐house. The analysis is in progress with the goal of presenting preliminary results to the UAC and CASC in November 2025.

CA 23. Present an ordinance to Council enacting the 2026 California Building Standards Code update, including the California Green Building Standards Code; submit to the California Building Standards Commission for approval. (28)
Project Manager: Julia Knight Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:

Adopt the California Building Standards Commission’s model technical building, mechanical, plumbing, electrical, existing buildings, fire, energy, residential building, historic building, and green building codes, with local amendments as appropriate, including standards to advance the City’s carbon reduction and electrification initiatives, in compliance with federal regulations. 2025 Project Milestones:

Continue research and analysis and engage stakeholders on anticipated amendments; collaborate with City service departments, including fire, public works and utilities. Prepare an ordinance for review by the Policy and Services Committee as applicable and forward a recommendation to the City Council for final action.

Quarterly Update:

Staff reviewed potential amendments with the Climate Action and Sustainability Committee at its May 2025 meeting and is finalizing proposals for stakeholder review over the summer. The goal is to bring the ordinance to the City Council for adoption in Q4 2025.

In response to new state legislation enacted earlier this summer, staff will review potential green and energy reach code proposals for residential building standards with the Climate Action and Sustainability Committee in early September, in lieu of the Policy and Services Committee.

Amendments to nonresidential building standards are not affected by the new state law.

Additional green and reach code amendments, which are dependent on pending State cost‐ effectiveness studies, will be brought to Council for consideration in the first half of 2026.

CA 24. Develop an Advanced Commercial Rooftop HVAC Pilot Program proposal and review with the Climate Action and Sustainability Ad Hoc Committee for recommendation to Council. (20) Project Manager: Shelby Sinkler Lead Dept: UTL
Estimated Completion: Q4 Status: On Track
Project Description:

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12 In 2024, staff launched an HVAC pilot program to offer enhanced incentives for replacing a limited number of aging rooftop gas‐pack units with heat pump heating, ventilation, and air conditioning (HVAC) systems in commercial buildings. The goal is to gain hands‐on experience with these types of replacements. The 10‐customer pilot is on track to reach capacity, with more than 10 applicants currently pursuing rebate reservations (which are not confirmed until a building permit is issued).

Lessons learned from this pilot will inform the design of an advanced rooftop HVAC program aimed at demonstrating a scalable, high‐participation business model. 2025 Project Milestones:

Staff will monitor the progress of projects from the 2024 pilot program and use the lessons learned from these projects to design an Advanced Pilot Program and review the proposal with the Climate Action and Sustainability Committee by Q4 2025 with the goal of launching it in early 2026.

Quarterly Update:

Data from the pilot program is steadily accumulating and will be used to inform the design of the advanced pilot program. Of the ten participating customers, three have completed their projects, and three more are currently in the permitting or construction phase. Pricing and other valuable information are available for most of the projects. This data is providing a sufficient foundation to begin shaping the preliminary design of the advanced pilot program, and staff has initiated the program development process.

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13 Economic Development & Retail Vibrancy

ED 25. Council approval of outdoor activation guidelines for California Avenue (2) Project Manager: Bruce Fukuji Lead Dept: CMO
Estimated Completion: Q2* Status: On Track
Project Description:

Council approval of California Ave outdoor activation guidelines, which includes dining, informed by continued engagement with stakeholders on a refined priorities and recommendations and initiate implementation.
2025 Project Milestones:

Council approval of outdoor activation guidelines.

Quarterly Update:

At the June 17 Council study session, staff received feedback to revise outdoor activation guidance to enable all year, all weather outdoor dining, develop design standards for permanent parklet structures and process for custom parklet designs; enable equivalent area to existing dining; work with the Architectural Review Board (ARB) on design and process recommendations.

*The revised project scope will now place an estimated completion to Q4.

ED 26. Council approval of a final signage plan for California Avenue and funding appropriations (2) Project Manager: Bruce Fukuji Lead Dept: CMO
Estimated Completion: Q2* Status: Behind
Project Description:

Review the signage plan for California Avenue with the Architectural Review Board (ARB), incorporate feedback, and seek Council approval to implement the plan. 2025 Project Milestones:

The near‐term signage improvements for California Avenue include replacement of El Camino Real (ECR) and Oregon Expressway signs to be completed by calendar year Q3. Longer‐term improvements will include formulating a comprehensive sign program, with a proposal to be developed and reviewed by Q3, and built into Fiscal Year 2027 CIP budget cycle, for implementation in Q3 of 2026.

Quarterly Update:

The concept design for the Oregon Expressway sign has been completed. Staff is currently coordinating with potential fabricators to define the scope, schedule, and estimated costs for Item A
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14 procuring the signage. In addition, the design for the El Camino Real sign is being updated in response to comments received from the Architectural Review Board.

*The revised estimated completion date is now Q3.

ED 27. Council approval of a design option for California Ave. (3) Project Manager: Bruce Fukuji Lead Dept: CMO
Estimated Completion: Q2* Status: Behind
Project Description:

Develop a feasible, achievable community and business supported street design concept to modify and permanently designate California Avenue as a car‐free, bicycle friendly, outdoor dining, shopping and public space environment, including guidelines for outdoor dining, signage and wayfinding.

Engage stakeholders to refine alternative street designs for California Avenue and present them to Council for discussion and action, including funding appropriations to pursue a street design. 2025 Project Milestones:

Develop two street design alternatives with slow, two‐way bicycle facilities; ensure all‐weather all‐ year outdoor dining and public spaces for community use.

Quarterly Update:

Monthly in‐person meetings have been held with California Avenue merchants, along with a community workshop and stakeholder meetings to gather input and share updates. On March 10, 2025, the City Council approved the permanent closure of the car‐free portion of the street. On March 20, 2025, staff received comments from the Architectural Review Board regarding outdoor activation and signage.

Two alternative street designs were developed and presented to merchants and at the community workshop for feedback. During the June 17, 2025 Council study session, Council provided input on outdoor dining, confirmed the bicycle route on California Avenue with traffic calming measures and
signage, and expressed support for designating Cambridge Avenue as the preferred route for through biking. Street designs now need to be updated to reflect Council direction on outdoor activation for approval.

*The estimated completion date is now Q4.

ED 28. Propose and implement outdoor activation guidelines for Car‐Free Ramona Street Project Manager: Ashwini Kantak Lead Dept: CMO
Estimated Completion: Q3* Status: On Track
Project Description:

Initiate implementation of Council approved outdoor activation standards informed by continued engagement with stakeholders on a refined priorities and recommendations. 2025 Project Milestones:

Council approval of outdoor activation standards in August and implementation of outdoor dining and retail areas in accordance with adopted standards estimated to be completed by December.

Quarterly Update:

Outdoor activation standards were presented to the Retail Committee on June 18, 2025. The Committee requested that staff engage the Historic Review Board and the Architectural Review Board, and explore the feasibility of roofed structures and electrical connectivity. This expanded Item A
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15 scope will require a longer implementation timeline. Staff will seek Council confirmation on this revised direction in August 2025. Following Council’s confirmation, staff will prepare a consultant contract amendment for Council consideration. An engagement strategy for the two Boards and key stakeholders will also need to be developed, and funding must be secured before the project timeline can be updated.

*Based on the proposed revised scope, the estimated completion date may extend beyond Q4.

ED 29. Council approval of Ramona Street design and funding appropriations (4) Project Manager: Ashwini Kantak Lead Dept: CMO
Estimated Completion: Q2* Status: On Track
Project Description:

Engage stakeholders to develop design proposals and outdoor activation standards for Car‐Free Ramona Street and present to Council for necessary funding appropriations to implement Phase I. 2025 Project Milestones:

Council approval on March 10 of pedestrian only Ramona Street; Council approval of funding for Phase I near‐term streetscape improvements as part of adopted FY 25‐26 budget. Council approval of near‐term improvements was planned for summer, with implementation to follow in fall/winter.

Quarterly Update:

Proposed near‐term streetscape improvements included in Phase I project scope were presented to the Retail Committee on June 18, 2025. The Retail Committee asked staff to engage the Historical Review Board and Architectural Review Board and to explore longer term streetscape improvements.

This change in project scope will require a longer implementation timeline and need additional CIP funding. Staff will be seeking Council confirmation on this direction in August 2025.

It is important to note that Phase I scope had been planned to be implemented by the end of this calendar year to expedite the removal of the
temporary vehicle barriers and signage. The change in
project scope will result in the temporary barriers staying in place until the new project scope is finalized, finding identified, and project implemented.

*Based on the revised scope this is now on track with the to be completed by Q3.

ED 30. Resume work on new parking structure in downtown core (Lot D) (8) Project Manager: Holly Boyd Lead Dept: PW
Estimated Completion: Q2 Status: Completed
Project Description:

Resume work on a new parking structure in the Downtown core on a City surface parking lot to help attract visitors downtown. Pursue refined proposals for potential affordable housing development on the Lytton / Kipling Lot T at 450 Lytton Avenue, or elsewhere, with parking for residents and the public. 2025 Project Milestones:

Develop and present parking garage design options for City Council review and selection.

Quarterly Update:

In April, the Council approved proceeding with the preliminary design and environmental review for a 274‐space parking garage, featuring six levels of above‐ground parking and a reserved area to allow for the future construction of affordable housing on the site, with separate access on Waverley Street.

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16 In June, the Council approved an exclusive negotiating agreement with Alta Housing for the development of affordable housing on Lot T.

ED 31. Council approval of funding to continue Downtown cleanliness enhancements and other medium‐term investments.

Project Manager: Brad Eggleston Lead Dept: PW
Estimated Completion: Q2 Status: Completed
Project Description:

Include necessary proposals and budget appropriations as part of the development of the FY 2026 Operating Budget to continue enhanced Downtown Cleanliness enhancements and other medium‐ term investments such as a Mobility Hub.
2025 Project Milestones:

Include funding proposals for Council approval in the FY 2025 mid‐year budget and FY 2026 budget for cleaning enhancements, including increased sidewalk and parking garage pressure washing, contract services to replace existing staff overtime, and some ongoing overtime staffing. Identify existing or propose new funding to improve University undercrossing and tunnels, provide a mid‐ block crosswalk connecting Centennial Alley and King Plaza, and evaluate and implement alternative tree grate solutions.

Quarterly Update:

The FY 2026 budget approved by Council in June included appropriations for enhanced cleaning as described in the project milestones. The capital budget included new funding for tree grate alternatives and existing funding to support the University undercrossing and mid‐block crosswalk projects. In June, Council approved the construction project for repainting and providing new lighting in the University undercrossing and tunnels, and work is expected to begin in August.

Staff is working with VTA and Stanford on the Mobility Hub and Transit Center. The VTA Ad Hoc Committee meets regularly to discuss this. The agencies and the City are partnering with the Urban
Land Institute to conduct additional analysis to help inform further discussions.

ED 32. Begin feasibility analysis of Assessment District for University Avenue Streetscape Project Manager: Ashwini Kantak Lead Dept: CMO
Estimated Completion: Q3 Status: On Hold
Project Description:

Conduct analysis to determine practicality of an assessment district or similarly funding strategy as a funding mechanism for capital enhancements to University Avenue Streetscape. 2025 Project Milestones:

Award of contract to a consultant to determine the feasibility of an assessment district and initiate stakeholder engagement.

Quarterly Update:

A Request for Proposals was released and the selection process for a consultant initiated. However, given the concerns about funding for the streetscape project, this project is currently on hold.

Support economic development and retail vibrancy
ED 33. Complete build‐out of fiber‐to‐the‐premises (FTTP) pilot Phase 1 with grid modernization (9) Project Manager: Alex Harris Lead Dept: UTL
Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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17 Estimated Completion: Q3 Status: On Track
Project Description:

Complete building out of a reliable and high‐speed municipal fiber service in a pilot area and work to establish internet service provider operations including necessary business tools such rate setting, billing and operations software to roll out services in the initial build.

The City is advancing a pilot phase 1 of fiber with grid modernization to bring reliable and faster broadband, high‐speed internet services directly to companies and homes, supporting business and remote workers. The City recently completed the pilot design for the Palo Alto Fiber project and aligned with the electric grid modernization to capitalize on economies of scale and reduce neighborhood disruptions.
2025 Project Milestones:

Complete buildout of a reliable and high‐speed municipal fiber and grid modernization pilot. Issue a Request for Proposal (RFP) for Operating Support Systems/Business Support Systems (OSS/BSS) and invitation for construction bids for phase 1 implementation.

Quarterly Update:

The grid modernization pilot has been completed. The OSS/BSS system is scheduled to be completed in Q3. The OSS/BSS will enable customers to sign up for Palo Alto Fiber internet in the pilot area or express interest in non‐serviceable areas at this time.

Due to delays with the fiber hut permit, materials, and construction, the City is scheduled to offer Palo Alto Fiber internet service in the pilot area in Q1 2026. Prior to the pilot, staff is exploring opportunities to offer broadband internet service to some customer‐friendly accounts to ensure the product package and customer experience is positive.

ED 34. Council consideration of an ordinance that expands retail opportunities and promotes retail resiliency (12)
Project Manager: Jennifer Armer Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:

Consider further refinement to the retail and retail‐like definition and explore changes to retail preservation ordinance.
2025 Project Milestones:

Prepare recommendations on retail approaches in response to City Council direction. Conduct a Planning and Transportation Commission (PTC) study session to explore alternative ordinance revision strategies. Prepare a draft ordinance for review by the PTC and recommendation to the City Council.

Quarterly Update:

Recommendation memo and ordinance outline underway and anticipated Q3 completion. PTC review anticipated in early Q4 followed by Council review.

ED 35. Council consideration of an ordinance restoring subjective wireless communication facility regulations.

Project Manager: Jennifer Armer Lead Dept: PDS
Estimated Completion: Q4 Status: Completed
Project Description:

Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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18 Hold a public hearing on a draft ordinance implementing the City Council's direction from late 2024 to eliminate objective standards for the placement of wireless antennas within the public right of way on streetlight or utility poles.
2025 Project Milestones:

Adopt a temporary ordinance.

Quarterly Update:

The City Council held a public hearing on a draft ordinance on May 19, 2025. The temporary ordinance was adopted, with a second reading on June 9, 2025. Direction on future work was provided and will proceed once funding and staff resources are available.

ED 36. Refine destination marketing efforts and enhance Palo Alto’s international reputation.

Project Manager: Steve Guagliardo Lead Dept: CMO
Estimated Completion: Q3 Status: On Track
Project Description:

Meet with hospitality partners and incubator/accelerators to assess willingness to partner with the City on destination marketing efforts and propose next steps, including necessary appropriation actions, to City Council.
2025 Project Milestones:

Collaborate with local hotels and incubator/accelerators to partner with the City.

Quarterly Update:

In May 2025, staff met with local hoteliers to discuss destination marketing for Palo Alto. The hoteliers expressed support for marketing efforts but emphasized the need for measurable outcomes to share with their executive teams. Staff is also continuing to explore partnership opportunities with incubators and accelerators. However, due to limited staffing, progress has been slower than anticipated.

Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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19 Implementing Housing Strategies for Social & Economic Balance (IHS)

Enable housing production through zoning and regulatory reform IHS 37. Prepare an ordinance for Council review expanding the housing focus area (41) Project Manager: Coleman Frick Lead Dept: PDS
Estimated Completion: Q2 Status: Completed
Project Description:

Increase housing development potential along El Camino Real and consideration of an exemption from payment of development impact fees for inclusionary units under certain circumstances, consistent with Housing Element Program 3.4 E.
2025 Project Milestones:

Present draft ordinance for PTC consideration and recommendation to City Council.

Quarterly Update:

The Planning Commission considered a draft ordinance amending and expanding the El Camino Real Focus Area on March 26, 2025 and recommended City Council approval. The City Council adopted an ordinance amending the regulations on May 27, 2025 (June 16 second reading).

IHS 38. Present to Council an ordinance updating the City’s housing incentive program (46) Project Manager: Coleman Frick Lead Dept: PDS
Estimated Completion: Q2 Status: Completed
Project Description:

Increase housing development potential and expand provisions to multi‐family zoning and other commercial districts in accordance with Housing Element Program 3.4 D. 2025 Project Milestones:

City Council consideration of a draft ordinance.

Quarterly Update:

The City Council adopted an ordinance amending the Housing Incentive Program and Affordable Housing Incentive Program on March 3, 2025 (April 7 second reading).

IHS 39. Prepare an update to the City's accessory dwelling unit ordinance Project Manager: Garrett Sauls Lead Dept: PDS
Estimated Completion: Q2 Status: Completed
Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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20 Project Description:

Update local implementation regulations to respond to changes in State Law, consistency with the State Housing and Community Department's 2025 ADU Handbook and address applicable deficiencies identified in HCD's comment letter.
2025 Project Milestones:

Adopt an ordinance updating the City’s accessory dwelling units Quarterly Update:

Council reviewed and approved a draft ordinance on May 12, 2025, with a second reading on June 16, 2025.

IHS 40. Initiate the San Antonio Road Area Plan (40)
Project Manager: Coleman Frick Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:

Begin data gathering, document review, implementing a community outreach and engagement strategy, check‐in meetings with appointed and elected officials, and review by the City Council of a community assessment report and receive updated project direction, consistent with Housing Element Program 6.6 C.
2025 Project Milestones:

Secure professional services to conduct community outreach and as part of that engagement, form a community advisory committee by Q2. Community outreach will commence in Q3 and a draft Existing Conditions Report (Q3).

Quarterly Update:

The City Council adopted the professional services contract supporting the project in Q1. The project team conducted a kick‐off meeting and site visit. The Existing Conditions phase of the project was initiated in Q2. A Community Advisory Group and Technical Advisory Group for the project were formed in Q2.

Advance affordable housing developments
IHS 41. Partner with Santa Clara County Housing Authority to achieve construction timeline milestones for the Palo Alto Homekey project (which will provide transitional housing and services for unhoused residents) (51)
Project Manager: Melissa McDonough Lead Dept: CMO
Estimated Completion: Q3* Status: On Track
Project Description:

Palo Alto Homekey construction is scheduled to take place throughout calendar year 2024 with completion in early 2025. City staff attends regular project management meetings and owner‐ architect‐contractor (OAC) meetings and conducts site visits. The Housing Authority assists the City with overall review of construction financing, budget and schedule, as well as construction monitoring, including conducting site visits, informing the City whether work is being completed on time and according to design intent, and reviewing the project schedule on a regular basis, providing input to mitigate potential delays.
2025 Project Milestones:

Monitor the timely completion of updated milestones relating to concrete work, fabrication of modular units, setting of modular units, backfill and grading, decking and stairs, completion of site‐ built items, and switchgear installation and energization.

Quarterly Update:

Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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21 Homekey Palo Alto has made steady progress, with several key milestones recently achieved or upcoming, including permanent power installation (April 1), roofing completion (May 5), the beginning of siding and waterproofing work in May, and initial modular unit setting in late June, followed by other construction tasks such as stair and decking installation through the summer.

A strategic shift in modular production from a planned facility in Tracy, CA to subcontractor VBC’s main manufacturing factory in Berwick, PA was made to prioritize quality. This adjustment, while slowing progress, has resulted in enhanced quality. Early delays were also attributed to the integration of specialized cast iron plumbing and staffing shortages at the factory.

Currently, the focus is on ensuring high‐quality finishing of the modular units now that they have been safely delivered and placed on‐site. In late June 2025, the first modulars were set at the San Antonio Road site and in July the remaining housing unit modulars were also set.

*The project team is estimating construction completion by early 2026 after impacts of construction delays.

IHS 42. Identify different housing typology options for the one‐acre site near Matadero Creek Project Manager: Claire Raybould Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:

Use grant funded technical analysis to consider housing options for a future affordable housing development on land to be dedicated to the City from the 2023 Sobrato/City Development Agreement; present findings and receive direction from Council. 2025 Project Milestones:

Present massing options, financial analysis, and request for proposal considerations for City Council feedback and direction on next steps.

Quarterly Update:

Grant funded technical analysis is 75% complete. City Council consideration anticipated in fall 2025.

IHS 43. Prepare the Community Development Block Grant (CDBG) 5‐Year Consolidated Plan and Annual Action Plan.

Project Manager: Robert Feign Lead Dept: PDS
Estimated Completion: Q4 Status: Completed
Project Description:

The Quinquennial update helps jurisdictions to assess affordable housing and community development needs and market conditions to make data‐driven, place‐based investment decisions when distributing federal CDBG grant funds.
2025 Project Milestones:

City Council adoption of the CDBG Consolidated Plan (Con Plan) and Annual Action Plan (AAP) by Q2.

Quarterly Update:

The City met the Department of Housing and Urban Development (HUD) timeliness test on May 2, 2025. The Human Resources Commission considered the draft CDBG Con Plan and AAP on May 8 and Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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22 provided recommendations for City Council consideration. The City Council adopted the CDBG Con Plan and AAP on June 9, 2025.

IHS 44. Advance affordable housing project on Downtown surface parking lot (Lot T).

Project Manager: Julia Knight Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:

Enter into an exclusive negotiating agreement with Alta Housing; receive an updated project concept design & prescreening application for Council review; receive formal planning entitlement application, consistent with Housing Element Program 1.4 A.
2025 Project Milestones:

Staff anticipates that Alta Housing will hold a community meeting to gather general ideas and input for this project in August 2025 and will present an updated design concept to Council in September 2025. The Alta Housing team is currently targeting an October project application submission and a December design review hearing with the Architecture Review Board.

Quarterly Update:

City Council selected Alta Housing as their development partner for the Lot T project on January 21, 2025 and approved an exclusive negotiation agreement with Alta Housing on June 17, 2025.

IHS 45. Work with the Santa Clara County Housing Authority to determine next steps to maintain affordability and improve conditions at Buena Vista Mobile Park (56) Project Manager: Melissa McDonough Lead Dept: CMO
Estimated Completion: Q4 Status: On Track
Project Description:

Meet with Housing Authority regularly to identify feasible next steps. Review financing approach and options. Update Council on identified, proposed next steps and approach. 2025 Project Milestones:

Staff plans to meet with Housing Authority regularly to identify feasible next steps. Including reviewing financing approach and maintaining Council abreast of identified options and approach.

Work on this project will be reported quarterly and as necessary, with activities concluding in Q4.

Quarterly Update:

Staff are regularly meeting with the Housing Authority and have reviewed the financing approach to the paused project. With funding sources shifting dramatically at the federal government level, the Housing Authority is actively working to determine next step options for park upgrades with already secured funds.

IHS 46. Organize an initial review of sources and methods to raise funding to support new affordable housing production for future evaluation.

Project Manager: Melissa McDonough Lead Dept: CMO
Estimated Completion: Q4 Status: On Track
Project Description:

Conduct research to identify and evaluate sources and methods. Work with Finance Committee to develop recommendations for City Council.
2025 Project Milestones:

Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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23 Conduct research and evaluate sources and methods to raise funding to support new affordable housing production. Present findings to the Finance Committee for feedback and development into recommendations for City Council.

Quarterly Update:

Project will be initiated in Q3.

Support tenant protections and housing equity
IHS 47. Present a renter protection fair chance ordinance to Council (54) Project Manager: Coleman Frick Lead Dept: PDS
Estimated Completion: Q3 Status: Completed
Project Description:

Present findings of an analysis and policy recommendations in the form of a draft ordinance to reduce barriers to housing by individuals with criminal records, consistent with Housing Element Program 6.6 I.

Consistent with the City Council’s renter protection policy direction, staff will research the policy implications of a fair chance renter policy from a legal, policy, and anticipated resource demand perspective.
2025 Project Milestones:

Present ordinance for City Council consideration.

Quarterly Update:

Staff presented an ordinance for City Council consideration on April 14, 2025. The Council directed staff to further analyze specific provisions and return to the City Council Policy and Services Committee for further consideration and next steps.

IHS 48. Report out on initial data from the rental registry program and project implementation; receive feedback and recommendations for next steps. (57) Project Manager: Coleman Frick Lead Dept: PDS
Estimated Completion: Q3 Status: On Track
Project Description:

The Rental Registry Program registration period ran between fall 2024 and spring 2025. The data collected in the first year of the program will be provided to the City Council including key insights and next steps.
2025 Project Milestones:

Reporting to Council on first year of registration period in Q3. Open second year registration period on October 1, 2025.

Quarterly Update:

Analysis of data collected through Program Year 1 of the rental registry program was completed in Q2. An informational report will be provided to the City Council in Q3.

IHS 49. Present to Council an analysis related to anti‐rent gouging (55) Project Manager: Julia Knight Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:

Consistent with prior Council direction, examine implications of a possible ordinance from legal, policy and anticipated resource demand perspectives; receive direction on next steps. 2025 Project Milestones:

Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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24 September 30, 2025 will mark the end of the first year of required real‐time rent increase reporting for all properties subject to the rental registry program as it is currently implemented. Staff will analyze this data alongside annual rent reporting trends from the 2024‐2025 program year to inform a Q4 Council discussion on the costs and benefits of a potential rent stabilization program in Palo Alto.

Quarterly Update:

Staff presented initial policy analysis findings to Housing Ad Hoc Committee in Q4 2024 and received direction to present analysis alongside Palo Alto specific rental housing data from the Rental Registry Program in 2025. The Rental Registry team will review and analyze available data as of June 2025 and will continue to do so through the end of September.

IHS 50. Present options to address homelessness impacts, particularly relating to individuals living in vehicles, to Policy & Services Committee for prioritization.

Project Manager: Chantal Cotton‐Gaines Lead Dept: CMO
Estimated Completion: Q3 Status: On Track
Project Description:

Identify feasible (1) regulatory approaches to manage the use of public space and (2) policy solutions to expand RV safe parking. Present options to the Policy & Services Committee (P&S) for consideration and prioritization.
2025 Project Milestones:

Identify options for P&S, including implementation considerations and resources needs.

Present options to P&S for consideration and prioritization.

Quarterly Update:

Staff has identified options for P&S to consider and prioritize in late August. It will go to P&S on August 25, 2025 at a special meeting.

Improve citywide housing policy and planning
IHS 51. Extend for one year or codify R1/SB 9 interim ordinance (45) Project Manager: Jennifer Armer Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:

Establish objective development standards and increases the maximum floor area for SB 9 units from 800 to 1200 square feet consistent with Housing Element Program 6.3A; consider implications of similar objective standards for R1 and SB 9 projects relative to the City’s Individual Review Program. 2025 Project Milestones:

Discuss and receive feedback from the Planning and Transportation Commission on a permanent ordinance in Q3 for Council consideration in Q4.

Quarterly Update:

Project will be initiated in Q3.

IHS 52. Initiate evaluation of South of Forest Area Coordinated Area Plan (SOFA) development standards.

Project Manager: Coleman Frick Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:

Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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25 Review and explore options to amend the coordinated area plan with the intent to replace subjective development standards with objective standards to accommodate future residential development at higher densities consistent with Housing Element Program 3.7. 2025 Project Milestones:

Develop options for amending the South of Forest Area Coordinated Area Plan (SOFA) Quarterly Update:

Project scoping planned for Q3.

IHS 53. Present to Council the Downtown Housing Plan Community Assessment report and receive Council direction on draft housing plan scenarios (36)
Project Manager: Coleman Frick Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:

Continue advancing the plan development and public engagement strategy to prepare draft housing plan and environmental analysis.
2025 Project Milestones:

Provide the City Council with the Community Assessment in Q2 and receive direction on alternative approaches to housing distribution in the plan area and hold a community workshop (Q4). Policy development and community engagement efforts will continue through Q4 of 2025.

Quarterly Update:

The Downtown Housing Plan Community Assessment report was completed in June, 2025 and a project status information report was provided to the City Council on June 16, 2025. The project team held the second community workshop for the project on June 18, 2024; and second Community Advisory Group meeting on July 1, 2025.

IHS 54. Present an ordinance to Council that supports innovative housing structures.

Project Manager: Coleman Frick Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:

Create zoning incentives or update development standards to support various housing typologies, including micro‐units, intergenerational housing, aging adults, students and lower‐income units, consistent with Housing Element Program 6.5.
2025 Project Milestones:

Complete stakeholder outreach in Q2 2025. Complete an analysis of opportunities and challenges in Q3, followed by the development of alternative approaches and a study session with the Architectural Review Board in Q4.

Beyond this year, a draft ordinance will be prepared in 2026 for recommendation by the Planning and Transportation Commission and consideration by the City Council.

Quarterly Update:

Stakeholder interviews were conducted in Q1/Q2. The draft Opportunities and Challenges Analysis and Outreach Summary of stakeholder interviews were completed in Q2. The next step of the project includes developing alternative approaches to accommodating various alternative housing types in the zoning ordinance for ARB discussion. Timing is subject to City Council adoption on Planning on‐call contracts.

Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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26 IHS 55. Present findings to Council on a study that explores code amendments reducing commercial floor area and possible extension of Downtown in‐lieu parking program to residential development (50)
Project Manager: Coleman Frick Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:

Evaluate opportunities that make multi‐family housing an attractive alternative to commercial office development, consistent with Housing Element Program 3.9. 2025 Project Milestones:

Present findings to the PTC and ordinance recommendation to the City Council.

Quarterly Update:

The project team conducted a kickoff meeting in Q1. Models were created for test sites to evaluate different development scenarios (Q2). Simulations using the test models are anticipated to begin in August 2025 subject to City Council adoption on Planning on‐call contracts.

The project team completed some stakeholder
meetings for the parking program component.

Remaining stakeholder meetings and draft a memo summarizing the issues and findings will follow; anticipated to resume in August.

IHS 56. Update development impact fees for public safety, government facilities, housing, transportation, parks, and community services.

Project Manager: Julia Knight Lead Dept: PDS
Estimated Completion: Q4 Status: On Track
Project Description:

Conduct a nexus and feasibility study to ensure housing remains viable. Consider potential policy to waive impact fees associated with for low‐income inclusionary units with when 20% of the units are deed restricted. (Housing Element Programs 2.1B; 3.1 B&C) 2025 Project Milestones:

A RFP was issued in May 2025, with responses due by July 11, 2025. An interdepartmental panel will conduct respondent interviews at the end of August. Staff is targeting consultant selection, contract execution and project kick‐off in the fall. Fee updates based on consultant studies and staff community needs analyses are anticipated in 2026 and 2027.

Quarterly Update:

Staff published the RFP in May 2025 following interdepartmental review and responded to questions received on the RFP in June 2025.

Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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27 Public Safety, Wellness & Belonging (PS)

Modernize public safety infrastructure
PS 57. Open the new Public Safety Building for daily Police, OES, and Fire services (72) Project Manager: Holly Boyd Lead Dept: PW
Estimated Completion: Q3 Status: On Track
Project Description:

Complete construction, move‐in of departments, and a ribbon‐cutting event to commemorate the official availability of public safety services from the facility for all.

Complete construction of the new Public Safety Building followed by furniture and equipment installation, communication testing and set‐up.
2025 Project Milestones:

Complete construction of the project and move public safety departments into the fully operational building.

Quarterly Update:

Staff obtained the certificate of temporary occupancy (stock & train) in May. Since then, staff has been working with various contractors to complete the final construction work and anticipates starting to move public safety departments in mid‐August.

PS 58. Council to adopt the updated Foothills Fire Management Plan and Community Wildfire Protection Plan (71)
Project Manager: Ken Dueker Lead Dept: OES
Estimated Completion: Q2 Completed
Project Description:

Plan to reflect alignment with Santa Clara County and other agencies and entities to address early warning technology, planning and procedural elements and risk mitigation.

Staff is working on various efforts related to improving the City’s planning in collaboration with Santa Clara County and other allied agencies and entities.

Efforts include not only emergency planning, but
also early warning technology, and updating operational and procedural elements within the City organization to mitigate the risks associated with a fire in the foothills.

NOTE: The Foothills Fire Management Plan/Community Wildfire Protection Plan (FFMP/CWPP) is a multi‐year plan with OES, Fire
Department, Public Works, Utilities Wildfire Mitigation Plan, Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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28 Community Services Department coordinated via the Foothills Fire Management Team (aka Foothills Wildfire Coordination Team).
2025 Project Milestones:

Staff is also pursuing a service agreement with the Santa Clara County Firesafe Council to perform the schedule of required treatments each year in conjunction with some support from the City.

The Fire Department and OES are in the process of evaluating certain remote fire detection equipment in cooperation with the Fire Safe Council and local partner agencies. In partnership with the Santa Clara County Fire Safe Council, Palo Alto, Stanford, and the Woodside Fire Protection District deployed a distributed wildland fire sensor network (known and “N5”) via a Homeland Security grant in the Fall of 2024 and will work through 2025 to optimize the system’s configuration.

Quarterly Update:

Public engagement was held in April through May, 2025 to seek public comment on the update of the two plans followed by Council awareness in Q2. Formal adoption is not a requirement of the Plans.

PS 59. Council approval of construction contract for Fire Station No. 4 Replacement project and initiation of construction. (73)
Project Manager: Holly Boyd Lead Dept: PW
Estimated Completion: Q2* Status: Behind
Project Description:

Complete design and award a construction contract to re‐build Fire Station No. 4. 2025 Project Milestones:

Complete design, construct temporary facility, and award a construction contract in the Fall 2025.

Quarterly Update:

The project was advertised for bids in late June, and a construction contract is anticipated to be awarded in September. The temporary fire station construction was completed in June and staff relocated in July.
*The objective is now estimated to be completed by Q3.

PS 60. Activate a fire engine at Fire Station 4
Project Manager: Stephen Lindsey Lead Dept: Fire
Estimated Completion: Q2 Status: Completed
Project Description:

The Palo Alto Fire Department (PAFD) provides fire protection and emergency medical transport throughout the City and Stanford. Following pandemic budget reductions that impacted all City departments and services, the Council has reinvested in fire services to rebuild operations. Additional investment in emergency medical and fire response supports the whole community and a near‐term proposal to add a fire engine to the current ambulance staffing at Fire Station 4 will be considered. 2025 Project Milestones:

Augment staffing at Fire Station 4 to deploy either ambulance or fire engine response.

Quarterly Update:

Engine 64 was officially upstaffed at Fire Station 4 on May 5, 2025. It is now cross staffed daily with Medic 64, with a crew consisting of a captain, apparatus operator, and firefighter who are assigned to deploy either the fire engine or the ambulance, depending on the nature of the emergency.

As of July 8, 2025, both Engine 64 and Medic 64, along with their assigned personnel, have been relocated to the Temporary Fire Station 4 at 4000 Middlefield Road at Cubberley, in preparation for Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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29 the upcoming Fire Station 4 construction project. Units continue to operate under a cross‐staffed response model.

PS 61. Initiate an update to the City’s seismic hazards ordinance (75) Project Manager: Julia Knight Lead Dept: PDS
Estimated Completion: Q3 Status: On Track
Project Description:

Conduct an assessment of previous study, update potentially eligible buildings, and begin work on seismic hazard identify and mitigation ordinance.
2025 Project Milestones:

Establish a community advisory group to support the project with a first meeting targeted for August 2025, with 2‐3 additional meetings to follow. Staff intends to present findings from Task A (an updated of the eligible buildings list) to the Policy and Services Committee in November or December 2025. Work will continue into 2026 with an aim to adopt an updated ordinance by the end of the 2026 calendar year.

Quarterly Update:

City Council awarded the project contract to Rutherford & Chekene on February 10, 2025. Staff issued the consultant a notice to proceed with Task A on May 7, 2025. Staff began work to establish the community advisory group in June 2025.

Expand wellness and community saving facilities and services PS 62. Develop Master Plan for Cubberley site
Project Manager: Kristen O’Kane Lead Dept: CSD
Estimated Completion: Q4 Status: On Track
Project Description:

The City has hired consultant, Concordia, to lead the Master Planning process for the anticipated 15 acres of the Cubberly site. Currently the City owns eight acres and plans to purchase an additional seven acres from PAUSD pending a successful bond measure in November 2026. Concordia will lead the community engagement and master planning process with anticipated completion by December 2025.

Master planning will be in cooperation with The Friends of the Palo Alto Recreation Wellness Center, whose objective is to create space for a 3‐court gymnasium and wellness center in the first phase of construction. The master
planning process will occur concurrently with the City’s efforts to pass the bond measure in November 2026, which in 2025 will include working with a polling consultant (FM3) and ballot strategy consultant (Lew Edwards Group).
2025 Project Milestones:

The project will be kicked off by a Council Visioning Session in February, 2025, followed by community engagement meetings in March, June and September. Staff will analyze the feedback and return to Council in December to present the Final Master Plan draft for consideration.

Quarterly Update:

In the first two quarters of 2025, extensive community engagement took place through co‐design meetings, City Council updates, and various outreach efforts. Three design concepts—focused on building spacing and layout, outdoor space, and site circulation—were presented at the June 12 community meeting. Additionally, the first community poll conducted by FM3 indicated positive support for a potential future bond or tax measure.

Item A
Attachment B - 2025
Council Priorities and
Objectives Q2 Update

Item A: Staff Report
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30 PS 63. Implement the 2024‐2025 Wellness & Belonging Action Plan Project Manager: Chantal Cotton Gaines Lead Dept: CMO
Estimated Completion: Q4 Status: On Track
Project Description:

Complete the 26 action items in the action plan in collaboration with partners as well as completing a training on Islamophobia and Antisemitism.
2025 Project Milestones:

Each item in the action plan has a different deadline with a variety of milestones. The action plan can be found here: https://www.paloalto.gov/files/assets/public/v/2/city‐manager/wellness‐and‐ belonging/wellness‐and‐belonging‐workplan‐2025.pdf

Quarterly Update:

The most recent progress on the City’s wellness and belonging work is in the report to be presented to the Policy and Services Committee on August 12, 2025. Agenda link (it is item #4):
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16179. The progress on action plan items is included as Attachment A to that report.

PS 64. Open 445 Bryant Street Community Center
Project Manager: Kristen O’Kane Lead Dept: CSD
Estimated Completion: Q3 Status: On Track
Project Description:

The project at 445 Bryant Street will transform the facility into a two‐level community center designed to host community programs, classes, events, and dedicated teen space. The first‐floor multi‐purpose room will serve as the primary location for La Comida’s Senior Lunch Program. Phase I includes the structural improvements necessary to make the building safe for occupancy and to open the community center to the public. Completion of Phase I will allow for the official opening of the community center and the launch of La Comida’s lunch program. Phase II will focus on building out the second‐floor space to serve as a teen center and additional community events and classes. 2025 Project Milestones:

Phase I‐ hire an architect to design structural updates, with priority given to the first‐floor to serve as a senior lunch program and community event space. Structural improvements will include ADA improvements, sound mitigation, plumbing and HVAC system upgrades among others.

Quarterly Update:

In February, CJW Architect contract was executed to design the structural updates to 445 Bryant Street. Multi‐department coordination has continued through the first and second quarters with the primary goal of completing renovations to the downstairs space for La Comida’s senior lunch program by Q3. CSD is planning to do some programming by the end of the year or in early 2026.

PS 65. Enhance and Expand Inclusive Programs and Services Project Manager: Amanda Deml Lead Dept: CSD
Estimated Completion: Q4 Status: On Track
Project Description:

Enhance services to support individuals with disabilities seeking accommodation support, expand community partnerships that serve the disability community, and implement new therapeutic recreation programs.

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31 CSD will continue to expand and enhance inclusive and accessible practices, programs, classes, and events. The new Therapeutic Recreation and Accessibility Coordinated role was hired in August 2024 and began providing dedicated support to the department in handling all accommodation requests for participation, leading quarterly all‐staff training on inclusive practices, and facilitating inclusive and adaptive recreation programs, classes and events with our community partner organizations. 2025 Project Milestones:

The Community Services Department will hire a new full‐time coordinator to support inclusion efforts across programs. The department will enhance the accommodation request process to better serve individuals with diverse needs and will create and support new inclusive programs in collaboration with community partners. Additionally, new therapeutic recreation programs will be launched to provide tailored opportunities for participation. To strengthen internal capacity, quarterly inclusion trainings will be implemented for all CSD staff.

Quarterly Update:

City Council approved the coordinator position to be expanded from 0.75 FTE to full‐time in the FY26 budget process and allocated budget for program supplies and accommodation support which will enhance our ability to serve the community. A full‐time staff member will allow us to provide consistent accommodation support for participants, implement all‐ staff inclusion trainings within CSD, and launch therapeutic recreation programs. The incumbent resigned in February and the search for the full‐time staff member will begin in August.

PS 66. Implement New Expanded CSD Recreation Special Events Workplan. (60) Project Manager: Kristen O’Kane Lead Dept: CSD
Estimated Completion: Q4 Status: On Track
Project Description:

Create special events that foster togetherness, belonging, and a strong sense of community.

Continuing cherished traditions and introducing new gatherings helps combat the loneliness epidemic and celebrate the rich diversity of the community. Longstanding events such as the May Fete Parade and Festival, Fourth of July Chili Cook‐Off, Moonlight Run, and Holiday Tree Lighting remain cornerstones of community connection. New events are also planned for this year, pending City Council approval of the workplan. In addition, the Community Services Department (CSD) offers a wide range of special events throughout the year and actively partners with other City departments and local organizations to enhance community engagement. 2025 Project Milestones:

Approve the 2025 CSD Recreation Special Events workplan. Include the following new events:

Heart and Harmony Dance; Around the World in One Day Cultural Event; Fun and Games at July Third Thursday; Pancakes in the Park; and a Pet Costume Parade.

Quarterly Update:

On February 24, the City Council approved the CSD Recreation Special Events Workplan Special, and implementation has been successfully implemented for the first two quarters. Planning for the third quarter is underway.

67. Support Community Mental Health (65)
Project Manager: Kristen O’Kane Lead Dept: CSD
Estimated Completion: Q4 Status: On Track
Project Description:

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32 The Community Services Department (CSD) continues to promote mental health for all ages through a range of programs, partnerships, and initiatives. In FY25, the City Council allocated $100,000 to support youth and teen mental health efforts. Ongoing programs from 2024 include free Link rides for teens ($10,000) to access mental health‐supportive locations such as community centers, parks, libraries, and Allcove, as well as the Beyond the Books event ($4,000). New initiatives in FY25 include a $45,500 contract with Palo Alto University to host mental health workshops for teens and parents, and a new Career Fair event ($10,000) focused on post‐high school pathways that do not involve traditional university enrollment. Additional trainings, programs, and partnerships are also under development.
2025 Project Milestones:

In the spring, teen mental health workshops will launch in partnership with Palo Alto University, along with a career fair focused on non‐traditional post‐high school pathways. Fall activities will include hosting the Beyond the Books event. By Q4, the City of Palo Alto and the Palo Alto Unified School District will work with stakeholders to further refine the scope of collaboration for City Council discussion, potential direction, and continued partnership with the School District.

Quarterly Update:

CSD staff along with Palo Alto University hosted trainings and workshops for youth, adults, and staff.

Staff is developing a new agreement with Project Safety Net and exploring a partnership with the JED Foundation for the second half of 2025 and beyond.

Promote environmental and transportation safety
PS 68. Continue engagement with San Francisco Airport on SFO's Ground Based Augmentation System (GBAS) project and other potential opportunities to decrease SFO noise impacts on Palo Alto. (79)
Project Manager: Andy Swanson Lead Dept: PW
Estimated Completion: Q4 Status: On Track
Project Description:

Palo Alto is impacted by three arrival routes into San Francisco International Airport (SFO). These routes have had an ongoing negative health impact on our community and intensified due to the implementation of the Federal Aviation Administration’s NextGEN Initiative. The City remains committed to collaborating with residents, the FAA, SFO, SFO’s Community Roundtable, elected officials, regional agencies, and noise advocacy groups to identify solutions that restore quality of life.

Staff and community members continue to evaluate the potential noise impacts of SFO’s proposed Ground Based Augmentation System (GBAS) on Palo Alto.
2025 Project Milestones:

Issue a Request for Qualifications (RFQ) to solicit proposals for two key initiatives:

1. Ground‐Based Augmentation System (GBAS): To evaluate the feasibility and potential benefits of implementing GBAS technology to reduce aircraft noise impacts in our region.

2. San Francisco International Airport (SFO) Noise Data Analysis: To obtain detailed data and technical expertise for analyzing noise impacts from SFO operations on our community.

The RFQ process will ensure we identify qualified consultants or firms with the appropriate experience to support these efforts.

Quarterly Update:

The Request for Qualifications was issued in May 2025. The RFQ is expected to go out late summer or early fall.

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33 PS 69. Council Approval of Quiet Zone Concept Plans at Churchill Ave, Meadow Drive, and Charleston Rd Rail Crossings. (76)
Project Manager: Ripon Bhatia Lead Dept: OOT
Estimated Completion: Q3 Status: On Track
Project Description:

Quiet zone implementation is desired by neighborhood to reduce noise impact of locomotive horn sound off in advance of crossings. The city must mitigate the increased risk caused by the absence of the horn. Safety improvements meeting Federal Rail Authority technical requirements must be identified and implemented in order to establish a quiet zone. 2025 Project Milestones:

A draft conceptual improvement plan was developed in 2024.

Conduct public outreach and review by the Rail Committee by June 2025.

Quarterly Update:

Staff conducted a public outreach meeting and now working to complete the Quiet Zone Study Report. Staff plans to bring the project for Rail Committee review in September.

PS 70. Enhance safety and improve quality of life in commercial areas by reducing criminal activity through business engagement and the deployment of officers and technology.

Project Manager: Andrew Binder Lead Dept: PD
Estimated Completion: Q4 Status: On Track
Project Description:

Establish a Business Watch program to enhance collaboration with businesses and assign two officers at a minimum to patrol high traffic commercial areas.

Deploy technology and officers in commercial areas in order to deter criminal activity and support a safe environment for the public. Engage with local businesses to facilitate information sharing, identify problems and develop collaborative solutions. Work with other city departments to abate nuisances and connect offenders with appropriate social services. 2025 Project Milestones:

Assign at least 2 officers daily to, exclusively, patrol high traffic commercial areas. Complete deployment of 10 additional Automatic License Plate Reader (ALPR) cameras approved by the Council in December for a total of 30 cameras throughout. Establish a “Business Watch” program to enhance collaboration with businesses.

Quarterly Update:

Two or more officers are being deployed daily to, exclusively, patrol high traffic commercial areas. All 30 Council‐authorized ALPR cameras have been deployed. PD staff has coordinated with the Chamber to facilitate better dissemination of relevant crime trend information and will continue working with the Chamber to further improve collaboration.

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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Fire
Meeting Date: August 18, 2025
Report #:2506-4780
TITLE
Palo Alto Fire Department Annual Performance Report for Calendar Year 2024; CEQA status:
not a Project

RECOMMENDATION
This is an informational report and no action is required.

BACKGROUND AND DISCUSSION
The Annual Performance Report includes important performance measures and highlights activity and personnel updates for the Fire Department.

FISCAL/RESOURCE IMPACT
This informational report has no fiscal impact.

ENVIRONMENTAL REVIEW
This report is for informational purposes only with no action required by the Council and is therefore not a project subject to CEQA review.

ATTACHMENTS
Attachment A: Fire Department Annual Performance Report Calendar Year 2024 APPROVED BY:

Geoffrey Blackshire, Fire Chief
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2024
Palo Alto Fire Department
Annual Report
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Calendar Year 2024

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CHIEF’S MESSAGE
The 2024 Annual Report focuses on our performance, special projects, and staff recognition for their service. Some of the highlights in the 2024 report are the following:
There were 9,543 calls for service in 2024, a 3% increase from 2023.
Response time performance measures are now showing the statistics for the entire system and for all urgent calls. Previously, they were reported for Fire or EMS calls only.
For the first time, PAFD conducted hands only CPR training for residents and City employees.
The fire prevention bureau is nearly fully staffed as of early 2025 allowing us to make great progress on completing state mandated building inspections.
The PAFD 2025-2030 Strategic Plan is posted on our website. This document was completed with input from community, City and PAFD stakeholders.
PAFD continues to hire in an effort to keep up with retirements and turn over. In 2024, we hired 9 entry level firefighters, and 5 lateral firefighters.

I am excited about our progress in 2025 and the opportunities before us. I would like to thank the PAFD team, their families, our partners, and Palo Alto leadership for their dedication and support.

We always strive to meet our performance standards in emergency response and prevention. We also aim to prioritize safety, diversity, equity, and firefighter wellness to foster a healthy department and serve this community with compassion and pride.

Take Care,
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MISSION
We are a professional team dedicated to safeguarding and enriching the lives of anyone, anytime, anywhere with compassion and pride.

VALUES
The Palo Alto Fire Department members commit to the following values in serving our communities and each other:

Integrity
We serve our community and support each other with respect and honesty. We approach our commitment with Dignity and Courage. We are accountable through our every-day actions and communication.

Innovation
We creatively integrate tradition with technology acknowledging the wealth of resources available in our community and department to improve health, safety and welfare.

Professionalism
We are dedicated to providing quality service in the delivery of a cost effective and superior service. Our attitude, appearance, knowledge, skills and abilities are reflective of our commitment to excellence.

Diversity
The members of our department exemplify diversity on multiple levels. Our skills, backgrounds and experiences allow us to effectively respond to the vast range of emergencies and outreach opportunities.

Compassion
We exist to serve our communities and support each other with empathy, sincerity and respect.

Education We strive to continually improve ourselves and our skills to increase our own safety and better protect the communities we serve. We strive to stay abreast of the latest developments in emergency response. We provide educational opportunities through community outreach to help increase knowledge of preparedness and personal, family and home safety.

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SERVICE AREA
The Palo Alto Fire Department serves an area of approximately 38.7 square miles including 12.8 square miles of Stanford University Campus. Stanford University contracts with the PAFD to provide fire and EMS response to campus and the surrounding area.

There are seven fire stations placed throughout the City and Stanford. All are staffed 24/7, with the exception of Fire Station 8 in the Palo Alto Nature Preserve which is staffed seasonally by PAFD and Santa Clara County Fire personnel.

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FIRE STATIONS
Fire Station 1 (Downtown)
301 Alma Ave, Palo Alto, CA
Built in 1965
Engine 61, Medic 61
Fire Station 2 (Mayfield)
2675 Hanover St, Palo Alto, CA
Built in 1965
Engine 62, Medic 62
Fire Station 3 (Rinconada Park)
799 Embarcadero Rd, Palo Alto, CA
Built in 2021
Engine 63
Fire Station 4 (Mitchell Park)
3600 Middlefield Rd, Palo Alto, CA
Built in 1953
Engine 64, Medic 64 (Cross-Staffed)
Fire Station 5 (Barron Park)
600 Arastradero, Palo Alto, CA
Built in 1967
Engine 65
Fire Station 6 (Stanford University)
711 Serra Ave, Stanford, CA
Built in 1972
Engine 66, Truck 66
Fire Station 8 (Foothills Park)
Foothills Park, Page Mill Rd, Palo Alto, CA
Built in 1986
Staffed seasonally during Summer by PAFD
and Santa Clara Co. Fire
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CALLS FOR SERVICE
In Calendar Year 2024, the Palo Alto Fire Department responded to a total of 9,543 calls for service and 18,760 unit movements, or how many units responded to the 9,543 calls. Most calls for service require more than one unit to respond.

Year Calls for Service Unit Movements
2022 8,578 16,958
2023 9,272 18,026
2024 9,543 18,760
Rescue and Emergency Medical Incidents make up 62% of all calls for service. These calls include heart attacks, strokes, injuries and other emergency medical situations, including motor vehicle accidents, and any auto extrication or technical rescues.

Good Intent Calls (15%): Good Intent calls capture incidents where there may have been an emergency, but it turned out to be non-emergent or nothing at all. For example, someone could smell smoke and call 9-1-1, but after firefighters arrive and investigate, they may find that the odor was from burnt popcorn down the
hall.

False Alarms and False Calls (13%): These are primarily alarms that are automatically triggered during
construction or other non-emergency causes such as
steam from a shower, dust, insects, or smoke from
cooking. This category also covers situations where
someone negligently triggered a fire alarm or made an
intentionally false report.

Rescue and
EMS, 62%Good Intent,
15%
False Alarm,
13%
Service Calls,
7%
Fire, 1.5% HazMat and
Other, 1.3%
2024 Calls for Service
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Service Calls (7%): These calls are for situations where the department is providing a service, but it’s not an
emergency. This can include clean up calls for smoke
removal, water evacuations or other hazards; assisting
with falls in the home; people trapped in an elevator or elevator overrides.

Fires (1.5%): This covers any fire where smoke and flames are present, such as small dumpster fires, residential fires, commercial fires or wildfires. There were 143 fires in 2024, and although it makes up a small percentage of the overall
incidents, they are the most time consuming and resource intensive. Large fires typically require all the resources in the City, including automatic aid from neighboring fire
departments.

Hazardous Materials and Others (1.3%): Most of these are utilities related, such as a natural gas leak, wiring problem, powerlines down, but it also includes gasoline, diesel, or oil spills, chemical releases or other biological hazards.

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RESPONSE TIMES
The time it takes from the 9-1-1 call to the time a fire crew arrives on scene is the primary measurement of performance for Emergency Response Service. The standard is to arrive within 8 minutes 90% of the time, and for EMS calls, to have a paramedic ambulance arrive within 12 minutes.

Three unique time segments are included when evaluating an agency's response performance. The first is the time it takes for the dispatcher to answer the 911 call and notify the agency (call processing); the second is the time it takes for the agency to receive the call and go en-route to the call (turnout time); and third is the time it takes for the unit to drive to the incident (travel time). All three segments combined make up the total response time. For this evaluation, the unit type was not discriminated against, and the first arriving unit was used to determine the total response time.

Response Times 2023 2024
Percent of a first responder arriving on scene
to all emergency calls within 8 minutes or
less
88% 88%
90th Percentile response time of a first
responder arriving on scene to all
emergencies
9:24 9:16
Percent of ambulance arrival to an
emergency medical call within 12 minutes
91% 92%
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MAP OF RESPONSE TIMES
The map below shows response times for the first arriving unit on urgent calls for CY 2024.

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MUTUAL AID
The Palo Alto Fire Department provides resources to neighboring jurisdictions in the case of an emergency or fire station coverage when their own resources are depleted. The assistance is reciprocated from partnering fire departments which is outlined in the Santa Clara County Mutual Aid Plan or automatic-aid agreements.

Mutual Aid Provided
Agency 2023 2024
Santa Clara County Fire 97 100
Mountain View Fire 26 45
Menlo Park 9 1
All Others 1 15
All Fire Mutual and Auto Aid Provided 133 161
Mutual Aid Received
Agency 2023 2024
Mountain View Fire 45 52
Menlo Park Fire 43 29
Santa Clara County Fire 14 6
Sunnyvale Fire 2 0
Santa Clara City Fire 1 0
Woodside Fire 1 3
All Fire Mutual and Auto Aid Received 106 90
Santa Clara County Ambulance 220 270
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EMERGENCY MEDICAL SERVICES AND PROGRAMS

AMBULANCE TRANSPORTS AND PATIENTS
Palo Alto is the only Fire Department in the County that operates an ambulance transport service. In 2024 there were a total of 3,936 transports to the hospital from calls originating in Palo Alto or Stanford. When all of the PAFD ambulance units are busy, Santa Clara County will offer mutual aid and send one of their ambulances. In 2024, Santa Clara County transported on 68 incidents from Palo Alto or Stanford.

Palo Alto Patients Transported
Agency 2023 2024
Palo Alto Fire 3,868 3,868
Santa Clara County 81 68
The majority of patients provided emergency medical services are above the age of 60, making up 65% of all patients.

CARDIAC ARRESTS
There were a total of 61 full cardiac arrest incidents in 2024. PAFD fire crews are trained multiple times yearly on High Performance Cardio-Pulmonary Resuscitation Techniques (HPCPR). This County standard requires a team of 5 people, with specific roles for all personnel on scene. Each Firefighter performs HPCPR for no more than two minutes before another team member takes over for the compression quality to remain consistent.

High Performance CPR was performed on 61 cardiac arrest patients. 15 of the patients achieved a return of spontaneous circulation (ROSC). ROSC is the resumption of sustained perfusing cardiac activity associated with significant respiratory effort after cardiac arrest. The Palo Alto Fire Department’s ROSC rate is 25%, which is aligned with the California State average of 25%. 10 and Under
6% 11 to 20
6%21 to 30
7%
31 to 50
7%
51 to 60
9%
61 to 70
14%
71 to 80
17%
81 and Older
34%
CY24: EMS Patients by Age
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Return of Spontaneous Circulation (ROSC)
HPCPR Performed 61
Number of Patients with ROSC 15
PAFD ROSC Rate 25%
CA State Average 25%

PALO ALTO FIREMED PROGRAM
The Department launched a new savings program for ambulance transport services, called Palo Alto FireMed. Even with medical insurance, an emergency ambulance ride can cost between $250-700. The Palo Alto FireMed Program for residents and businesses makes sure participants are not stuck with a bill during an emergency. Palo Alto FireMed is convenient and cost-effective, covering unlimited ambulance rides per household for a low cost of $8 per
month, which is only $96 a year. The Department had 271 new enrolled residents in 2024, many of whom have
saved on copays. Residents interested in enrolling should check out the Palo Alto FireMed Program Website by scanning the QR Code or going to cityofpaloalto.org/firemed.

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FIRE PREVENTION
The Fire Prevention team ensures that all life and safety codes are being accurately implemented with new construction, remodeling projects, and commercial development. The team also conducts annual building and hazardous materials safety inspections.

California state requires annual inspections on certain public buildings with high capacities, such as schools, hospitals, research facilities, places of worship, entertainment centers, etc. These are tracked and reported to the State annually. In 2024, due to staffing shortages, only 15% of required buildings were inspected. In 2025, Fire Prevention hired two additional Fire Inspectors that will are solely dedicated to completing State mandated inspections.

The total number of facilities in Palo Alto that store hazardous materials grows annually. The fire code requires that these facilities adhere to strict safety measures and requires an annual inspection. Hazmat facilities are tracked and inspected annually. In late 2024 Hazmat Inspector positions were filled and gradual progress was made on facility inspections.

Hazardous Materials Inspections
2023 2024
Number of HazMat Facilities 1093 1049
HazMat Inspections Completed 132 364
Percentage Complete 12% 35%
The Fire Prevention Division conducts inspections in the Wildland/Urban Interface and construction projects. Prevention personnel issues permits and approves development plans throughout the year.

The development and construction volume continues increase in numbers. Inspectors are also responsible for investigating the cause of fires, and in 2024, there were 28 Fire Investigations.

Other Inspections and Investigations
2023 2024
Wildland/Urban Interface 110 152
Construction Inspections 6,643 8,984
Fire Permits 744 791
Plan Review 3,346 3,511
Fire Investigations 56 28
State Mandated Building Inspections
2023 2024
Number of Buildings 532 532
Inspections Completed 137 82
Percentage Complete 26% 15%
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COMMUNITY OUTREACH

HANDS ONLY CPR TRAINING
The Fire Department held a Hands Only CPR Training for residents and city staff in September 2024. A total of 138 people participated, with 68 residents and 70 city employees.

Hands-only CPR involves
providing uninterrupted chest
compressions at a rate of 100–
120 compressions per minute,
without mouth-to-mouth
breaths. It is simple, effective,
and especially useful for
untrained bystanders in
emergencies like sudden cardiac
arrest. This technique can
significantly improve a victim’s
chance of survival when
performed immediately.

STRATEGIC PLANNING
The Palo Alto Fire Department 2025–2030 Strategic Plan is a comprehensive, community-driven roadmap developed through an inclusive and collaborative process. Facilitated by the Center for Public Safety Excellence, the plan began with gathering input from a diverse group of community stakeholders to understand expectations, concerns, and priorities.

This feedback was then carefully reviewed and incorporated by agency personnel during a multi-day work session, where staff from all levels of the department engaged in structured discussions to define the department’s mission, values, goals, and areas for improvement. The result is a forward-looking strategy focused on enhancing emergency services, workforce development, public engagement, and operational readiness to meet the evolving needs of the Palo Alto and Stanford communities. The management and administrative staff of the Department will use this plan as a roadmap for initiatives and creating an annual workplan through 2030.

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TRAINING
Training is a critical component of ensuring firefighters are ready and equipped with the best firefighting and rescue techniques to minimize the impact of any emergency; every firefighter averaged 363 hours of training in 2024.

Each year the training team creates an annual training plan with multiple courses each month dedicated to Fire training, EMS, Specialized training, and Officer preparation.

Typical courses include Fire Engine and Truck Driving, Fire Investigation, Rope Rescue Awareness and Operations,
Confined Space and Trench Rescue, and 12 lead and EMS
training. This year there were 1,370 hours of training courses offered.

This year the PAFD Hosted a Santa Clara County Wide wildland exercise in Foothills Nature Preserve. This exercise included live fire simulations, coordinated multi-agency responses, and tactical drills focused on wildland-urban interface firefighting.

Fire crews practiced deploying hose lays, using hand tools, and conducting structure protection in rugged terrain. The exercise aimed to improve interagency communication and readiness ahead of peak fire season.

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THE PEOPLE OF THE PALO ALTO FIRE DEPARTMENT
The 114 people that make up the Department serve the community with a great deal of pride and an attitude of excellence. The Department has 86 operations staff that are the firefighters, apparatus operators and fire captains that work in the stations and provide the direct services to the community.

In the Fire Prevention Bureau, there are 9 fire inspectors and managers to ensure buildings and facilities are up to code and adhere to all new laws that prevent instances of fires and reduce the impact of fires if they occur. The remaining 19 employees make up Fire Administration and include executive managers and support staff.

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NEW RECRUITS
It can take more than a year from the time a job announcement is posted before an entry level firefighter begins work on a fire engine or ambulance. Candidates complete a rigorous selection process including a physical fitness exam, mental health screening, and background check. Once a candidate is hired, they complete an intensive 21-week fire academy.

In October, the Department held a Joint Fire Academy with 10 new firefighters hired. Nine remain with the PAFD today.

Since the 2019 Civil Grand Jury of Santa Clara County Report, “Why Aren’t There More Female Firefighters in Santa Clara County” the Department has made additional efforts to recruit and retain female firefighters. In 2019, women made up only five percent (5%) of firefighters working at PAFD. As of this report, the Department has 8 Female Sworn Employees, making up a total of 8% of all sworn employees. Two of the 10 new hires in 2024 were women, however only one successfully completed the probationary period.

Dylan Aamoth
Hometown: Hayward, CA
Hobbies: Baseball, hiking,
camping, and golfing.

Trent Blackshire
Hometown: San Jose, CA
Hobbies: Family time,
basketball, and movies.

Eric Carlson
Hometown: San Mateo,
CA
Hobbies: skiing, rock
climbing, backpacking and
sports.

Karina Jacobs
Hometown: Bay Area, CA
Hobbies: Family time,
basketball, softball, and
watching football.

Kyle Ritchie
Hometown: Union City, CA
Hobbies: Kayaking,
camping, hiking,
snowboarding, and guitar.

Colin Roth
Hometown: Rohnert Park,
CA
Hobbies: Traveling, hiking,
soccer, basketball, and
football.

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New Recruits Continued
Charles Stewart
Hometown: Fremont, CA
Hobbies: Family time,
softball, flag football.

Ignacio Tedeschi
Hometown: Buenos Aires,
Argentina
Hobbies: Woodworking,
baking bread, pizzas and
bagels.

Josef Zargorski
Hometown: Burlingame,
CA
Hobbies: Woodworking,
mountain and road biking,
camping and skiing.

LATERAL HIRES
Lateral hires are new to the Palo Alto Fire Department, but not new to being a firefighter. Lateral hires complete a shorter in-house Fire Academy to train them on Palo Alto policies, procedures and operations.

Scott Bingham
Hometown: Santa Cruz,
CA
Hobbies: Building cars,
trucks, fishing, hunting
and off-road racing.

Matthew Dariano
Hometown: Morgan Hill,
CA
Hobbies: Family time,
water sports,
snowboarding, camping
and hiking.

Matthew Foster
Hometown: San Diego, CA
Hobbies: Working out,
camping, and traveling.

Ramon Pena Jr.

Hometown: Southern CA
Hobbies: Travelling,
Brazilian Jiu-Jitsu, and
quality time with his sons.

Adam Poarch
Hometown: Lake
Arrowhead, CA
Hobbies: Cooking,
traveling, mountain
biking and fishing.

Jessie Samide
Hometown: Santa Cruz, CA
Hobbies: Travelling,
specifically seeing all seven
wonders of the world. So
far 5 out of 7!
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Ben Slaughter
Hometown: Boulder
Creek, CA
Hobbies: Mountain biking,
fishing, four wheeling, dirt
biking, camping and
golfing.

PROMOTIONS

Kyle Alarid
Fire Captain
James Crain
Fire Inspector

Sunny Gutter-Johnson
Fire Captain
Carlos Gracia
Training Captain
Chris Mosko
Fire Inspector
Carlos Pinedo
Fire Captain
Nicholas Rohrer
Fire Captain
Deonshawn Strother
Fire Inspector
David Villareal
Hazmat Inspector
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RETIREMENTS
Jon Matsumoto
Firefighter
20 Years of Service
Ray Diaz Jr.

Firefighter
24 Years of Service w/ Fire
28 Years w/ the City
Aaron Craine
Apparatus Operator
17 Years of Service
Hugo Godoy
Fire Captain
20 Years of Service
Brian Kerezsi
Firefighter
24 Years of Service
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Public Works
Meeting Date: August 18, 2025
Report #:2507-4962
TITLE
Inaugural Youth Climate Advisory Board Annual Report; CEQA Status – Not a Project

RECOMMENDATION
This report is provided for information only and requires no Council Action.

EXECUTIVE SUMMARY
The Palo Alto Youth Climate Advisory Board (YCAB) is an advisory body of high school students dedicated to sustainability and climate stewardship. Members contribute to and provide feedback on Palo Alto’s climate initiatives and policies and bring Citywide sustainability efforts to local high schools. The YCAB was developed in partnership with the Palo Alto Student Climate Coalition. The inaugural YCAB meeting convened in September 2024. This staff report summarizes the accomplishments and achievements of the eleven members of the inaugural Youth Climate Advisory Board.

BACKGROUND
In the fall of 2023, Palo Alto Student Climate Coalition (PASCC) members Julia Zeitlin, Angelina Rosh, and Theo Waltuch met with the City to discuss their proposal for creating a Palo Alto Youth Climate Advisory Board (YCAB). Their idea was to create a student board, similar in structure to the Palo Alto Youth Council, that would address issues about sustainability and climate action that are relevant to the youth community and support the work of the Office of Sustainability.

The City worked with PASCC to develop and refine the YCAB proposal, resulting in adoption of Youth Climate Advisory Board By-laws in April 2024. YCAB members are expected to dive into complex issues and invest time and energy into making the City and Palo Alto schools more sustainable. Board members must attend high school in Palo Alto and are expected to attend monthly board meetings as well as additional subcommittee meetings. Board members commit to a full, year-long term, from September the year they are appointed to August the following year. The YCAB is led by a Chair and two Vice Chairs, elected by the student board members Item C
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and staff leadership. The Chair facilitates board meetings, with the Vice Chairs recording attendance and minutes. The Chair and Vice Chairs serve as youth liaisons and attend City staff’s Sustainability Leadership Team meetings.

Working with PASCC co-founder Julia Zeitlin, the City developed an outreach strategy, application, and application process for the inaugural YCAB. A selection committee of City staff, a PASCC representative, and a teacher at Fletcher Middle School reviewed the YCAB applications. The selection committee selected eleven Palo Alto high school students for the inaugural YCAB.

ANALYSIS
The inaugural Palo Alto Youth Climate Advisory Board formed in September 2024. The eleven members of the inaugural Palo Alto Youth Climate Advisory Board represent the following Palo Alto High Schools: Castilleja School, Henry M. Gunn High School, The Kehillah School, and Palo Alto High School. The members of the inaugural board are:

Elsa Lagerblad, Chair
Caitlin Hopkins, Vice Chair
Aiden Miao, Vice Chair
Anika Agrawal
Donovan Carlson
Laura Cheunkarndee
Maya Mazin
Jenna Mu
Aaron Nance
Yuna Ng
Kiara Yoon
The eleven members of the Board not only worked on a wide range of projects to champion sustainability and climate action, they also helped shape the structure and framework of YCAB, which will serve as a blueprint for future Youth Climate Advisory Boards. The inaugural YCAB focused their work on the following subcommittees: Media, Transportation, Water, and Zero Waste. The board members worked with schools, community members, and local agencies and businesses in their mission to advocate for youth voices on climate issues.

A summary of the work of the inaugural YCAB and the accomplishments of each subcommittee can be found in Attachment A: Youth Climate Action Board 2024-2025 Annual Report. This summer, the board continues their work on several projects, including a Sea Level Rise Item C
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communications and engagement project. The Board is also drafting recommendations to present to the Palo Alto Unified School District Sustainability Committee to guide a vision and plan for a sustainable school district that could be included in a Sustainability Master Plan.

FISCAL/RESOURCE IMPACT
Current and future initiatives will be managed and funded by the Office of Sustainability. Staff does not currently anticipate the need for additional resource requests as part of the annual budget process.

STAKEHOLDER ENGAGEMENT
Stakeholder engagement about the Youth Climate Advisory Board is wide-reaching and coordinated with multiple departments. Efforts include direct engagement, social media and other digital marketing/outreach, website updates, leveraging the City’s communication platforms, and more. Stakeholder engagement by the Youth Climate Advisory Board members included direct engagement with Palo Alto high school students, the Palo Alto Unified School District, community members, and local agencies and businesses; participation in City and school events; social media and other digital marketing/outreach; providing content for website updates; providing content for the City’s communication platforms; and more.

ENVIRONMENTAL REVIEW
This report is for informational purposes only with no action required by the Council and is therefore not a project subject to CEQA review.

ATTACHMENTS
Attachment A: Youth Climate Advisory Board 2024-2025 Annual Report APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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2024-25 Annual Report
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INTRODUCTION

PREFACE
This was the City of Palo Alto Youth Climate Advisory Board’s (YCAB) inaugural year, and the 11 members on the Board worked tirelessly to establish frameworks that will benefit the Board for years to come. We’ve reached schools, community members, and even local agencies and businesses in our mission to advocate for youth voices on climate issues.

We are incredibly proud of the work we’ve accomplished, and as such, what follows is a report by each subcommittee on its accomplishments. We hope that this report will serve both as an update on what we’ve done this year and as a guideline for what youth in Palo Alto want and need when it comes to climate action. We hope that our efforts will help the City and others make more intentional decisions that reflect the needs of the next generation, taking steps to protect the city and planet that we will inherit.

Members
Aaron Nance
Aiden Miao
Anika Agrawal
Caitlin Hopkins
Donovan Carlson
Elsa Lagerblad
Maya Mazin
Jenna Mu
Laura Cheunkarndee
Kiara Yoon
Yuna Ng
Elsa Lagerblad
Head Chair
Aiden Miao
Vice Chair
Caitlin Hopkins
Vice Chair
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ZERO WASTE SUBCOMMITTEE
Summary
The Zero Waste Subcommittee is focused on reducing waste produced by the City of Palo Alto, aligning with the Zero Waste category of the Palo Alto Sustainability and Climate Action Plan (S/CAP). By increasing youth awareness of zero-waste strategies as well as developing concepts for new Zero Waste Ordinances and assisting in the implementation of preexisting ordinances, the Zero Waste Subcommittee hopes to foster a sense of responsibility toward waste reduction in our community.

Members
Maya Mazin
Jenna Mu
Laura Cheunkarndee
Kiara Yoon
Yuna Ng
Impact
●Raised youth awareness of Zero Waste
strategies and ordinances
●Created outlines for future projects and
developed relationships with local
organizations and schools

MAIN INITIATIVES
Fletcher Presentation
Presented to over 120 students at Ellen
Fletcher Middle School about the importance
of living sustainably and offered actionable
steps to help them incorporate zero-waste
practices into their lifestyles. Additionally,
introduced the students to the City’s S/CAP
and encouraged rising ninth graders to apply
for next year’s Board.

Zero Waste Ordinances
Received legislative resources from City staff
and met with Vice Mayor Veenker to build
upon policies for next year. Researched Zero
Waste ordinances and recommended concepts
for future ordinances that would support the
City’s Zero Waste goals. Obtained auditing
materials to help regulate and oversee actions
taken by local businesses for Zero Waste
ordinances.

Future Work
Drafted ideas for citywide events, including a
recycling art contest and mug-decorating
event that can be implemented next term.

Established relationships with local
organizations that will streamline
implementation next year.

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WATER SUBCOMMITTEE
Summary
The Water Subcommittee focuses on sea-level rise policy and water conservation efforts in Palo Alto. Its members are developing youth workshops to highlight the value of water conservation and designing a civic journalism project to raise community awareness on sea level rise and its effects on residents
Members
Anika Agrawal
Donovan Carlson
Kiara Yoon
Impact
●Highlighted resident voices in the realm of
public water policy
●Learned about Palo Alto’s water policy and
spread awareness to youth
Future Work
This year we planned a rain barrel painting
workshop targeting water-related outreach to
youth. The goal was to raise awareness about
rainwater collection through hands-on
engagement by having youth paint the barrels
and then donating them to PAUSD schools. We
recommend that the Water Subcommittee
complete this project in the 2025-2026 term
and prioritizes building off previous workshop
ideas (e.g., drip water irrigation and watershed
protection).

Main Initiatives
Communication
Reached out to local nonprofit Save the Bay
as well as City staff who are experts on the
issue of water conservation. Learned about
active efforts to mitigate sea level rise and
the technologies Palo Alto uses to track
water usage. Received valuable information
on ongoing initiatives in the City (e.g., the
Sea Level Rise Adaptation Plan).

Youth Workshops
Assisted with planning and preparing for a
succulent garden planting workshop at
Rinconada Library on June 14. Drafted
curriculum for City workshops aimed at
educating students about water
conservation and sustainability practices,
including a planned rain barrel painting
initiative for Palo Alto Unified School District
(PAUSD) schools.

Sea Level Rise Initiative
Met with city experts to discuss a sea level
rise project and revised approach to
prioritizing being informative, especially
through city resources. We will continue this
work during the remainder of our term by
synthesizing a graphic of the city’s current
efforts regarding sea level rise and joining
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the city in talking with residents.

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TRANSPORTATION SUBCOMMITTEE
Summary
The Transportation Subcommittee aims to help youth and Palo Altans move through the City more sustainably. Current initiatives include studying micromobility (e.g., e-bike and e-scooter rentals), expanding bike infrastructure to support road safety, and demonstrating youth interest in public transit.

Our mission is to ensure that getting around Palo Alto is safer, smoother, and more sustainable for all.

Members
Aaron Nance
Aiden Miao
Caitlin Hopkins
Elsa Lagerblad
Jenna Mu
Impact
●Gathered data on youth interest in
public transportation from 10+ public
and private schools in Palo Alto, with
youth noting their appreciation for our
work toward better transportation
●Shared these insights with the City,
Santa Clara Valley Transportation
Authority (VTA), and PAUSD in hopes of
having youth voices be more
represented in the decisions made by
these groups
●Other goals include having more bike
and public transportation infrastructure
in South Palo Alto (around Henry M.

Gunn High School) and incorporating
public transit education into school
curricula
●Helped lay the foundation for
reactivating micromobility in Palo Alto
Main Initiatives
Youth Transit Survey
A major accomplishment of the Transportation
Subcommittee has been creating and executing
a survey that aimed to gauge the interest of Bay
Area youth in public transit. We distributed this
survey through school announcements, YCAB-
based events, and members’ networks to over
220 students from over 10 Palo Alto middle and
high schools. The survey data provided concrete
insight into the demand and necessity of
reactivating previously shut-down shuttles and
improving the shuttle accessibility.

Safe Streets for All Recommendation
The Transportation Subcommittee provided a
joint recommendation on the Safe Streets for
All and Bicycle and Pedestrian Transportation
Plan. We drew on findings from the Youth
Transit Survey to suggest the implementation of
new Caltrain pedestrian and bike corridors.

Future Work
The Transportation Subcommittee collaborated
closely with City staff to analyze the need and
generate ideas for an e-bike and e-scooter rental
system in Palo Alto. We analyzed the City’s
previous micromobility attempts in 2013 and are
currently working to conduct a feasibility study
for Palo Alto. We recommend that the
Transportation Subcommittee continues to
prioritize this project in the 2025–2026 term.

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MEDIA SUBCOMMITTEE
Summary
The Media Subcommittee works to engage with the Palo Alto community, particularly youth, through social media and printed infographics. We aim to facilitate communication and collaboration with the City on YCAB’s goals. We organized the YCAB Earth Day Festival table and are currently developing content for the City website to promote YCAB’s initiatives and increase youth engagement.

Members
Donovan Carlson
Laura Cheunkarndee
Maya Mazin
Yuna Ng
Kiara Yoon
Impact
●Created media to accompany YCAB
initiatives to raise environmental
awareness
●Developed a unique aesthetic for YCAB
Future Work
We recommend that in the 2025-2026 term,
the Media Subcommittee work with the City to
create an editorial calendar for YCAB media,
which may include photos of the YCAB Board,
videos highlighting subcommittee initiatives,
member testimonies, and sustainable actions
and topics for teens to get more involved in
sustainability and climate action. We also
recommend continuing to collaborate with
other subcommittees to promote
subcommittee-specific initiatives.

Main Initiatives
YCAB Earth Day Festival Fliers
Designed fliers to promote public engagement,
spread the word about YCAB applications, and
help the Transportation Subcommittee reach a
broader pool of respondents for their Youth
Transit Survey. Communicated with the City
about organizing the Earth Day Festival.

Baylands Coloring Sheet
Designed a themed coloring sheet for kids with
fun facts about biodiversity in the Baylands,
environmentally friendly recreation in the city,
and landmark sustainability initiatives in Palo
Alto to educate youth on the importance of
climate stewardship and boost enthusiasm for
sustainability efforts in Palo Alto.

YCAB Website
Organized photos and bios of YCAB members
to display on the City website.

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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: August 18, 2025
Report #:2501-4027
TITLE
Investment Activity Report for the Fourth Quarter, Fiscal Year 2025. CEQA Status – Not a Project.

RECOMMENDATION
This is an informational report and no City Council action is required.

EXECUTIVE SUMMARY
The City’s Investment Policy1 requires that staff report to Council quarterly on the City’s portfolio composition and performance, discuss overall compliance with the City’s Investment Policy, and provide recommendations, if any, for Policy changes. In addition, staff provides a detailed list of all securities and reports on the City’s ability to meet expenditure requirements over the next six months. This report is to inform Council of the City’s investment portfolio performance as of the fourth quarter ending June 30, 2025 and to disclose staff’s cash flow projections for the next six months. Staff expect that the City will have sufficient funds or liquidity to meet expenditure requirements for the next six months. The portfolio details, activities, and performance are discussed below, and additional information is provided in the attachments. During the fourth quarter staff complied with all aspects of the Investment Policy and no significantly notable activity or changes in value occurred in this reporting period. As reported in the second and third quarters of Fiscal Year 2025, three municipalities’ bond ratings have been downgraded below the City’s minimum Investment Policy guidelines, however, the likelihood of a loss of their investments is low so these investments are planned to be retained. 1 City of Palo Alto website, Administrative Services Department, Money Management & Treasury:
https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/investment-policies/adopted- investment-policy-1-39-asd.pdf
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ANALYSIS
The City’s investment portfolio is summarized in Graph 1 and detailed in the Investments by Fund Report (Attachment B). The Investments by Fund Report groups the portfolio’s securities by investment type and include details of the investment issuer, date of maturity, current market value, the book and face (par) value, and the weighted average maturity of each type of investment and of the entire portfolio.

Due to rounding, the above graph's percentage total is less than 100 percent.

The par value of the City’s portfolio is $661.8 million; in comparison, last quarter it was $656.6 million and last year it was $640.9 million. The $5.2 million portfolio growth since the last quarter results from timing of cash flows, major revenue receipts due to seasonal timing, and one fewer pay period in the fourth quarter compared to the third quarter. Property taxes and related receipts begin the second, third, and fourth quarters and major revenues such tax as sales, transient occupancy and utility user’s taxes are historically higher in the fourth quarter. In the fourth quarter, higher capital project expenditures, mainly attributed to the Regional Wastewater Quality Control Plant, offset the historically higher tax receipts in the fourth quarter.

The portfolio consists of $84.7 million in liquid accounts and $577.1 million in various investment types as detailed in the following Table 1. The Investment Policy requires that at least $50 million be maintained in securities maturing in less than two years. The portfolio includes $259.3 million in investments maturing in less than two years, comprising 39.2% of the City’s investment portfolio. In addition, the Investment Policy allows up to 30% of the portfolio to be invested in securities with maturities beyond five years; actual at the end of the fourth quarter it is 24.9% of the portfolio.

U.S. Treasury

0.6%
U.S. Agency

26.1%
U.S.

Municipal/State

38.8%
Negotiable CD

11.7%
U.S. Corporate

3.6%
Supranational

8.1%
Liquid Accts.

11.0%
Graph 1: Investments by Type - $661.8 Million
(Par Value)
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The current market value of the portfolio is 97.0% of the book value. The market value of securities fluctuates, depending on how interest rates perform.

As interest rates decrease, the market value of the City’s portfolio will likely increase, and vice versa. There are inherent principal risks when actively buying and selling securities; providing information on market values is a reporting requirement that informs staff of the portfolio’s overall position. The market valuation is provided by U.S. Bank, the City’s safekeeping agent.

The average life-to-maturity of the investment portfolio is 2.81 years, compared to 2.87 years last quarter and 3.11 years in the fourth quarter of the prior year.

To minimize investment principal risk of loss due to lower market values, the City’s investment practice is to buy and hold investments to maturity. In instances where there is a need to sell securities for contingency cash flow planning, the City’s practice is to sell securities that are at or above the market value.

Investments Activity During the Fourth Quarter
During the fourth quarter, $21.4 million securities with an average yield of 3.1% matured. During the same period, per the following Table 2, securities totaling $21.0 million with an average yield of 4.6% were purchased. Investments purchased in the fourth quarter were made in securities with longer duration to take advantage of the higher interest rate environment. As a result, the interest rates rose on new investments; the City’s portfolio’s average yield also rose. The City’s short-term money market and pool account increased by $5.6 million compared to the same quarter of the prior fiscal year. Staff continually monitors the City’s short-term cash flow needs and adjust liquid funds to meet them.

Per California Government Code Section 53607, the Administrative Services Department provides a monthly report of transactions (investments, reinvestment, sold, and exchanged securities) to Council via a separate report. Though not required by this code, included in this Table 1: Up to 1 Year 1 to 2 Years 2 to 3 Years 3 to 5 Years Over 5 Years Portfolio Total * % of Portfolio U.S. Treasury 3.5$ 0.3$ -$ -$ -$ 3.8$ 0.6%U.S. Agency Bonds 55.211.8 1.7 17.9 86.0172.626.1%U.S. Municipal/ State Bonds 53.254.122.8 53.4 74.1257.638.9%Negotiable Certificates of Deposits (NCD) 25.016.114.0 17.2 5.0 77.311.7%U.S. Corporate Bonds 3.8 7.0 8.5 4.7 - 24.0 3.6%Supranational Organizations Bonds26.0 4.3 2.0 21.4 - 53.7 8.1%Liquid Accounts (LAIF & Fidelity)72.8 - - - - 72.811.0% Grand Total 239.5$ 93.6$ 49.0$ 114.6$ 165.1$ 661.8$ 100%% of Portfolio 36.2%14.1%7.4%17.3%24.9%100.0%* $126.0 million or 19.1% are in investments that support Environmental, Social, and Governace (ESG) Activities(aka "Green", local banks, and Supranational Bonds) Investment Type
FY 2025 Q4 Maturities - Par Value (millions)
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report are security maturities and cash movement activity in the City’s two liquid operating cash pool accounts (Local Agency Investment Fund and Fidelity accounts). Monthly and quarterly investment reports, along with the City’s Investment Policy, can be found on the City’s website3.

Availability of Funds for the Next Six Months
Staff expect that the City will have sufficient funds or liquidity to meet expenditure requirements for the next six months.

Over the next six months, an overall decline in the portfolio in the range of $10 to $15 million is expected due to routine business activities. This reflects expected receipts of in the range of $400 million and expenditures in the range of $400 to $425 million.

The expected decline in the portfolio is attributable to pre-paying a portion of the Fiscal Year 2026 Public Employers’ Retirement System’s (PERS) employer contribution of $49.7 million, representing the City’s unfunded accrued liability (UAL) lump-sum prepayment for FY 2026. By prepaying PERS instead of making payments with each payroll period, the City is expected to save $1.7 million in pension expense; the savings will be offset by the loss of approximately $0.9 million in interest income in the City’s investment portfolio. This results in net citywide savings of $0.8 million due to PERS’ ability to earn interest earlier and at a higher rate than the City’s portfolio.

As of June 30, 2025, the City had $84.7 million deposited in the Local Agency Investment Fund (LAIF) and a money market account. In addition, investments totaling $89.5 million will mature between July 1, 2025 and December 31, 2025.
3 City of Palo Alto, Administrative Services, Financial Reporting, City Investment Reports and Policy:
www.cityofpaloalto.org/investmentreporting
Table 2:

Up to 1 Year 1 to 2 Years 2 to 3 Years 3 to 5 Years Over 5 Years Portfolio Total * % of Purchase U.S. Agency Bonds -$ -$ -$ $ 1.7 5.5$ 7.2$ 34.3%U.S. Municipal/ State Bonds - - - - 3.8 3.8 18.1%Negotiable Certificates of Deposits (NCD) - - 0.3 0.5 - 0.8 3.8%U.S. Corporate Bonds - 0.5 - - - 0.5 2.4%Supranational Organizations Bonds- - 1.7 7.0 - 8.7 41.4% Grand Total -$ 0.5$ 2.0$ 9.2$ 9.3$ 21.0$ 100%% of Purchase 0.0%2.4%9.5%43.8%44.3%100.0%* $11.5 million or 54.7% are in investments that support Environmental, Social, and Governace (ESG) Activities(aka "Green", local banks, and Supranational Bonds) Investment Type
FY 2025 Q4 Security Purchases - Par Value (millions)
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Compliance with City Investment Policy
During the fourth quarter, staff complied with all aspects of the Investment Policy. Attachment C lists the major restrictions in the City’s Investment Policy compared with the portfolio’s actual performance.

The City’s Investment Policy requires new such security purchases to be rated AA or better and “If securities owned by the City are downgraded by Moody’s, Fitch, or Standard & Poor’s to a level below AA or Aa2, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.” The Southern California wildfires (Palisades and Eaton fires) have resulted in rating downgrades of the Los Angeles Department of Water & Power (LADWP) to “A” by Standard and Poor’s and Fitch to AA-. Moody’s still maintains its “Aa2” with a negative credit watch by all three rating firms meaning further rating downgrade(s) could occur. The City’s investment portfolio has $1.9 million in LADWP bonds with a remaining maturity duration of two years. LADWP potential issues revolve around lack of water supply and working hydrants and possibility of fires starting by downed power lines. Based on staff’s analysis, the likelihood of a loss of these investments is low so these investments should be retained.

In April 2025, the City of Los Angeles rating was downgraded by S&P to AA- and is on a negative credit watch by the three rating agencies. The City’s portfolio contains $5.4 million of their General Obligation (GO) Bonds, six of their bonds in the City’s portfolio are only rated by S&P and one is rated only by Moody’s which has a rating of Aa2 with durations ranging from 0.2 years to

7.2 years. GO bonds debt service on these bonds are funded by restricted annual property tax assessment(s); risk of loss is low and these securities will be retained to maturity. The City’s portfolio does own other municipalities securities in the area whose ratings have not been impacted by this, but staff will actively monitor all these entities’ ratings and potential liability developments with the assistance of the City’s brokers and by the use of EMMA’s website which is designated by the U.S. Securities and Exchange Commissions as the official sources for municipal securities data and disclosure documents.

In April 2025, the City of Oakland’s S&P rating was downgraded to AA- with a negative credit watch. The City’s portfolio has $6.9 million in City of Oakland GO Bonds with durations ranging from 3.5 years to 8 years and $0.2 million in revenue bonds with duration of 0.5 years. The main reason for the revised ratings is the large current and projected deficit due to expenditure growth, outpacing revenue growth. S&P acknowledges that Oakland’s management has implemented a plan to reduce operation expenditures, but they have concerns whether such actions are sufficient to address their structural imbalance. Based on staff’s analysis, the likelihood of a loss of these investments is low so these investments should be retained.

Investment Yields
Fourth quarter Interest income, on an accrual basis, was $4.4 million. Compared to the prior year’s same quarter of $4.1 million, it is $0.3 million higher due to prudent long-term investments made in the last several years during the higher interest rate environment. As of June 30, 2025, Item D
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the yield to maturity of the City’s portfolio was 2.70%; in the prior quarter it was 2.65%. In the fourth quarter, LAIF’s average yield was 4.27% while the average yield on the two-year and five- year Treasury bonds was approximately 3.86% and 3.97%, respectively. In comparison, in the prior quarter LAIF had higher 4.34% yield, and the two-year and five-year Treasury bonds yields were 4.15% and 4.25%, respectively.

The City’s portfolio yield is lower than the two-year and five-year Treasury bond due to the fluctuating but still high interest rates environment. It is expected that as the City’s investments mature in the next few years, funds will continue to be reinvested and will follow the economic patterns. Graph 2 shows the City’s yields and interest earnings for the past 23 years.

City’s portfolio duration is 2.81 years.

Yield Trends
The Federal Open Market Committee (FOMC), since March 2020, has raised the federal funds rate 11 times totaling 5.25% with the first occurring on March 16, 2022. Beginning July 31, 2024, FOMC decreased the rate four times totaling 1.25%. Since December 2024, the Federal Reserve kept interest rates unchanged. The primary goals of the Federal Reserve's monetary policy are to promote maximum employment, stable prices, and moderate long-term interest rates.

Following three consecutive rate reductions that began in September 2024, in March 2025 the FOMC held interest rate in the range of 4.25% to 4.50% for a six straight meeting. The Federal Reserve’s “wait-and-see” posture allows for time to assess impacts to inflation and growth from recent policy shifts under the new administration. Unemployment remains low and inflation remains elevated, though the risk of both has risen. Economic uncertainty has diminished but

5.88%

5.00%

4.17%

4.54%
City of Palo Alto

2.71%

1.80% 1.93% 1.66% 2.70%

3.65%

1.41%

0.81% 0.25%
2 Yr. Treasury

4.39%

3.86%

4.43%4.39%

4.98%

1.10%
5-Yr. Treasury

2.88%

2.47%

0.27%

3.23%

4.00%

3.97%

4.47%

1.44%

5.25%

0.23%
LAIF

1.29%

2.63%

4.27%
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%
Int. Earnings (Millions)Yields
Fiscal Year Quarters
Graph 2: Yields and Interest Earnings
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remains elevated. In a press conference filled with comments around uncertainty, Federal Reserve Chair Jerome Powell articulated the complexities surrounding the current economic landscape, which is heavily influenced by policies from the Trump administration.

Funds Held by the City or Managed Under Contract
Attachment A is a consolidated report of all City investment funds, including those not held directly in the investment portfolio. These include cash in the City’s regular bank account with US Bank and Wells Fargo. A description of the City’s banking relationships can be found in City Council Staff Report ID #2404-2845 5. The bond proceeds, reserves, and debt service payments being held by the City’s fiscal agents are subject to the requirements of the underlying debt indenture. The trustees for the bond funds are U.S. Bank and California Asset Management Program (CAMP). Bond funds with U.S. Bank are invested in federal agency and money market mutual funds that consist exclusively of U.S. Treasury securities. Bond funds in CAMP are invested in banker’s acceptance notes, certificates of deposit, commercial paper, federal agency securities, and repurchase agreements. The most recent data on funds held by the fiscal agent is as of June 30, 2025.

In January 2017, the City established a Public Agencies Post-Employment Benefits Trust Section 115 Irrevocable Trust (“Pension Trust”) administered by Public Agency Retirement Services (PARS). This fund is governed by the City’s Retiree Benefit Funding Policy 6 as opposed to the Investment Policy; however, it is discussed in this report to present the full picture of the City’s investments. It is the City’s intent to prefund pension costs and to address the Net Pension Liabilities (NPL) as calculated by Governmental Accounting Standards Board Pronouncement No. 68 (GASB 68). PARS offers five portfolio types, each with different asset allocation models that carry different levels of risk. In February 2023, the City Council revised the City’s portfolio selection from “Moderately Conservative” to “Balanced”, shifting from the second most conservative to a balanced portfolio that places more emphasis on growth of principal. Additional information on the establishment of this trust can be found in City Council Staff Report ID # 75537.

Through June 30, 2025, principal investment contributions of $87.4 million made over time since May 2017, have increased to $106.9 million and the net return for one and five years has been

12.6% and 6.1% respectively. Since inception, $23.5 million net earnings have been realized with $1 million in administrative expenses.

FISCAL/RESOURCE IMPACT
This is an information report.
5 City Council, June 17, 2024, https://portal.laserfiche.com/Portal/DocView.aspx?id=73964&repo=r-704298fc 6 Retiree Benefit Funding Policy, https://portal.laserfiche.com/Portal/DocView.aspx?id=61647&repo=r- 704298fc&searchid=01094afe-6411-4c18-937a-9d13dd8f4659
7 City Council, January 23, 2017 Item #5, CMR 7553:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2017/7553.pdf
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STAKEHOLDER ENGAGEMENT
Staff works internally and with external parties (U.S. Bank’s custodial, U.S. Bank’s bonds, Wells Fargo and U.S. Bank’s banking, California Asset Management Program (CAMP), and Public Agency Retirement Services (PARS)) statements to prepare this report.

ENVIRONMENTAL REVIEW
This Council informational report is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because the report is presented for informational purposes only with no action requested of the Council.

ATTACHMENTS
Attachment A: Consolidated Report of Cash Management
Attachment B: Investment Portfolio
Attachment C: Investment Portfolio Compliance
APPROVED BY:

Lauren Lai, Administrative Services Director
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Book Value Market Value
City Investment Portfolio (see Attachment B) 656,905,691$ 637,432,704 $ Other Funds Held by the City
Cash with Wells Fargo Bank 729,642 729,642 Cash with US Bank 1,139,389 1,139,389 Total - Other Funds Held By City 1,869,031 1,869,031 Funds Under Management of Third Party Trustees *
Debt Service Proceeds
US Bank Trust Services **
2009 Water Revenue Bonds (Build America Bonds)
Debt Service and Reserve Funds 2,285,819 2,285,819 2011 Utility Revenue Refunding Bonds
Debt Service and Reserve Funds 593,472 593,472 2018 Capital Improvement (Golf Course & 2002B COP Refinance) (Taxable- Green Bond) Certificates of Participation
Debt Service Funds 268 268 2019 California Avenue Parking Garage Certificates of Participation (Tax-Exempt and Taxable Bonds)
Debt Service and Reserve Funds 1,756 1,756 2021 Public Safety Building Certificates of Participation Debt Service Funds 2,162 2,162 2022A & B General Obligation (Library) Bond
Cost of Issuance Funds 4,344 4,344 California Asset Management Program (CAMP) ***
2012 University Ave. Parking Refunding Bonds
Reserve Fund 3,126,189 3,126,189
Public Agencies Post-Employment Benefits Trust ****
Public Agency Retirement Services (PARS) 109,904,483 109,904,483 Total Under Trustee Management 115,918,493 115,918,493 GRAND TOTAL 774,693,215 $ 755,220,228 $
* These funds are subject to the requirements of the underlying debt indenture. ** U.S. Bank investments are in money market mutual funds that exclusively invest in U.S. Treasury securities. *** CAMP investments are in money market mutual fund which invest in bankers acceptance, certificate of deposit, commercial paper, federal agency securities, and repurchase agreements. **** PARS investments are in moderately conservative index plus funds Attachment A
Fourth Quarter, Fiscal Year 2024-25
(Unaudited)
Consolidated Report of Cash Management
City of Palo Alto Cash and Investments
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Consolidated Report of Cash
Management

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City of Palo Alto
City of Palo Alto
Administration Svcs. Dept.
250 Hamilton Ave., 4th Floor
Palo Alto, CA 94301
(650)329-2362
June 30, 2025
Fund ALL - Portfolio Listings
Investments by Fund
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket ValueCUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
LAIF & Fidelity Cash Accounts
Fidelity Investments158 12,156,958.80SYS158 14.19007/01/2023 12,156,958.80 4.132 4.19012,156,958.80 Local Agency Investment Fund159 72,582,359.19SYS159 14.27007/01/2023 72,669,335.36 4.211 4.27072,582,359.19 Subtotal and Average 84,739,317.99 84,739,317.99 84,826,294.16 4.200 4.259 1 Negotiable Certificates of Deposits
Achieve Federal Credit Union2831 NCD 249,000.0000453NAA9 02/17/2026 2314.65002/17/2023 249,732.06 4.589 4.653249,000.00 Alaska USA Federal CU2850 NCD 249,000.00011852AK6 03/22/2028 9954.85003/22/2023 254,512.86 4.789 4.855249,000.00 Alliant Credit Union2781 NCD 249,000.0001882MAB8 12/30/2027 9124.95012/30/2022 254,709.57 4.884 4.952249,000.00 Austin Telco Fed. Credit Union2732 NCD 249,000.00052392CC9 11/27/2026 5145.05011/28/2022 252,555.72 4.984 5.053249,000.00 American Express Centurion Bk2729 NCD 249,000.0002589AEG3 11/16/2027 8685.00011/16/2022 254,570.13 4.931 5.000249,000.00 Banner Capital Bank2453 NCD 249,000.0006654HAA6 11/28/2025 1500.45011/27/2020 245,083.23 0.493 0.500248,948.89 Bank of Wisconsin Dells2455 NCD 249,000.00065847EH4 07/28/2025 271.05011/23/2020 248,357.58 0.542 0.549249,090.90 Baxter Credit Union2730 NCD 249,000.0007181JAU8 11/23/2026 5105.00011/22/2022 252,391.38 4.940 5.009249,000.00 Beal Bank - Plano, TX2668 NCD 249,000.0007371AYT4 02/24/2027 6032.05003/02/2022 241,258.59 2.053 2.081248,876.25 Bippus State Bank3094 NCD 250,000.0009070LAY5 03/06/2030 1,7094.55003/13/2025 250,037.50 4.487 4.549250,000.00 BankUnited NA2474 NCD 249,000.00066519QC6 01/22/2026 2050.55001/22/2021 243,942.81 0.592 0.600248,930.11 BMO Harris Bank2480 NCD 249,000.0005600XBX7 10/27/2028 1,2141.00001/27/2021 225,723.48 1.019 1.034248,732.96 BMW Bank of North America2448 NCD 249,000.0005580AXU3 11/20/2025 1420.50011/20/2020 245,269.98 0.493 0.500249,000.00 BankFirst Norfolk3028 NCD 249,000.0006644QAF8 09/28/2029 1,5503.60009/30/2024 244,657.44 3.552 3.601249,000.00 Beal Bank USA - Las Vegas, NV2669 NCD 249,000.0007371CH69 02/24/2027 6032.05003/02/2022 241,258.59 2.053 2.081248,876.25 Encore Bank2343 NCD 249,000.0029260MBH7 05/21/2027 6891.15005/21/2020 236,193.93 1.134 1.150249,000.00 First Carolina Bank2389 NCD 248,000.0031944MBB0 08/20/2025 500.45008/20/2020 246,653.36 0.444 0.450248,000.00 Central Bank3093 NCD 225,000.00152577CT7 03/08/2030 1,7114.55003/13/2025 225,036.00 4.487 4.549225,000.00 Community Choice Credit Union3032 NCD 249,000.0020368QAD8 03/30/2026 2724.00009/30/2024 248,845.62 3.945 4.000249,000.00 CFG Bank3106 NCD 250,000.0012527CKK7 03/31/2031 2,0994.60003/31/2025 250,032.50250,000.00 Chambers State Bank3009 NCD 249,000.0015783QAE3 03/12/2029 1,3505.05003/12/2024 249,191.73 4.984 5.053249,000.00 CIBM Bank2904 NCD 249,000.0012545JBB0 05/17/2028 1,0515.00005/17/2023 249,146.91 4.937 5.006249,000.00 Cinfed Fed Credtit Union Bank2504 NCD 249,000.0017248MAC1 03/04/2027 6110.65003/04/2021 235,526.61 0.691 0.701248,791.69 Citizens National Bank3091 NCD 250,000.0018977NAE0 03/05/2030 1,7084.55003/13/2025 250,037.50 4.487 4.549250,000.00 Connexus Credit Union2643 NCD 249,000.0020825WAR1 12/23/2026 5401.25012/23/2021 239,186.91 1.273 1.291248,852.73 Commercial Bank of CAL3010 NCD 249,000.00201313CB7 09/08/2025 695.00003/06/2024 249,273.90 4.931 5.000249,000.00 Cornerstone Community FCU3033 NCD 249,000.0021923MAA9 10/01/2029 1,5534.25009/30/2024 247,331.70 4.193 4.251249,000.00 Capital One Bank USA NA2609 NCD 249,000.0014042RQB0 11/17/2026 5041.10011/17/2021 239,281.53 1.084 1.100249,000.00 Portfolio CPA
AP
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June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 2
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Negotiable Certificates of Deposits
County Schools FCU2695 NCD 249,000.0022258JAB7 09/27/2027 8184.40009/30/2022 251,260.92 4.341 4.402249,000.00 Cental Valley Community Bank2945 NCD 249,000.0015568PAV8 01/29/2027 5774.90001/30/2024 249,141.93 4.836 4.904249,000.00 Country Club Bank2477 NCD 249,000.00222327AD0 01/29/2030 1,6731.10001/29/2021 218,343.12 1.154 1.170248,239.59 Decorah Bank Trust Company2690 NCD 249,000.00243594AR9 09/23/2027 8143.70009/23/2022 244,632.54 3.651 3.701249,000.00 Delta Natl Bank & TR2670 NCD 249,000.0024773RCR4 02/25/2027 6042.00003/09/2022 241,049.43 1.975 2.003249,000.00 Diversified Members CU3127 NCD 250,000.0025529LAE2 04/30/2030 1,7644.40004/30/2025 249,095.00 4.383 4.444249,516.98 Eaglemark Savings Bank2545 NCD 249,000.0027004PBV4 07/07/2026 3710.85007/07/2021 241,163.97 0.919 0.932248,797.64 Enterprise Bank2897 NCD 249,000.0029367RMN3 05/19/2028 1,0534.25005/19/2023 250,715.61 4.196 4.255249,000.00 Exchange State Bank3029 NCD 249,000.00301485AN8 09/06/2029 1,5284.60009/19/2024 249,044.82 4.561 4.625248,790.14 Farmers & Merchant State Bank2486 NCD 249,000.00308682BM4 02/12/2029 1,3221.00002/12/2021 223,639.35 1.037 1.052248,549.38 1st Financial Bank2390 NCD 248,000.0032022RNT0 08/19/2025 490.45008/19/2020 246,680.64 0.444 0.450248,000.00 Farmers Insurance Group CU2479 NCD 249,000.0030960QAK3 01/27/2026 2100.50001/27/2021 243,751.08 0.543 0.550248,928.41 First Guaranty Bank3069 NCD 250,000.00320437AP1 10/25/2027 8464.20010/25/2024 249,395.00 4.140 4.197250,000.00 First Oklahoma Bank2451 NCD 249,000.00335857CK2 11/30/2026 5170.65011/30/2020 237,513.63 0.691 0.701248,823.73 Farmers &Merchants Bank2644 NCD 249,000.00307811DM8 01/22/2030 1,6661.60001/14/2022 223,639.35 1.630 1.653248,433.67 First National Bank of America2465 NCD 249,000.0032110YRQ0 12/31/2026 5480.60012/31/2020 236,694.42 0.625 0.633248,875.44 Evolve Bank & Trust2951 NCD 249,000.00300498AV4 02/02/2026 2164.40002/02/2024 249,311.25 4.339 4.400249,000.00 First Southwest Bank3092 NCD 250,000.0033647BAG0 03/08/2030 1,7114.55003/13/2025 250,040.00 4.487 4.549250,000.00 First Technology Federal Credi3062 NCD 250,000.0033715LFZ8 10/25/2027 8464.00010/23/2024 250,115.00 3.949 4.003250,000.00 First Community Credit Union2554 NCD 249,000.0031986JAD3 02/26/2027 6050.85007/28/2021 236,497.71 0.892 0.905248,778.35 General Electric Credit Union2989 NCD 249,000.00369674CS3 03/01/2027 6084.60002/28/2024 251,450.16 4.537 4.600249,000.00 Gesa Credit Union2456 NCD 249,000.0037424PAC8 11/30/2027 8820.80011/30/2020 230,770.71 0.825 0.836248,785.19 Ally Bank3061 NCD 250,000.0002007G3R2 09/27/2027 8183.75010/15/2024 248,770.00 3.944 3.999248,670.84 Greenway Bank3108 NCD 250,000.00396916AC2 04/03/2028 1,0074.35004/03/2025 250,017.50 4.290 4.350250,000.00 Haddon Savings Bank2447 NCD 207,000.00404730DA8 10/20/2025 1110.35011/16/2020 204,453.90 0.491 0.498206,885.05 Bank Hapoalim BM2457 NCD 249,000.0006251A2Q2 12/15/2025 1670.50012/14/2020 244,677.36 0.543 0.550248,943.10 Healthcare Systems FCU2816 NCD 249,000.0042228LAM3 02/01/2027 5804.25001/30/2023 250,000.98 4.193 4.251249,000.00 Timberland Bank Hoquaim3020 NCD 249,000.0088709RBB4 03/28/2029 1,3665.10003/28/2024 249,136.95 5.033 5.103249,000.00 Inst. for Sav in Newburyport2556 NCD 249,000.0045780PAQ8 07/29/2026 3930.90007/29/2021 240,785.49 0.888 0.900249,000.00 Jonesboro State Bank2452 NCD 249,000.0048040PJL0 11/26/2027 8780.75011/27/2020 230,571.51 0.790 0.801248,700.52 JP Morgan Chase BAnk NA3087 NCD 250,000.0046657VNZ9 11/01/2029 1,5844.60011/01/2024 250,000.00 4.535 4.598250,000.00 Kennett Trust Bank3047 NCD 245,000.00489642CW6 10/04/2034 3,3824.30010/07/2024 240,830.10 4.277 4.337244,318.78 Ledyark National Bank2918 NCD 249,000.00523343AA9 12/29/2028 1,2774.05012/29/2023 256,216.02 3.994 4.050249,000.00 Legacy Bank & Trust Company2469 NCD 249,000.0052470QAN4 12/21/2028 1,2690.85012/30/2020 223,410.27 0.889 0.901248,566.11 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
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Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 3
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Negotiable Certificates of Deposits
Liberty First Credit Union2803 NCD 249,000.00530520AC9 01/27/2026 2104.50001/27/2023 249,423.30 4.442 4.503249,000.00 Live Oak Banking Company2599 NCD 249,000.00538036SS4 10/18/2027 8391.10010/18/2021 233,283.12 1.135 1.151248,713.95 Meritrust Federal Credit Union2672 NCD 249,000.0059001PAP4 03/10/2026 2520.55003/07/2022 243,509.55 1.904 1.930246,717.67 Merrick Bank2610 NCD 249,000.0059013KPS9 05/19/2026 3221.10011/19/2021 242,593.23 1.152 1.168248,853.51 Metropolitan Capital Bank2986 NCD 249,000.00591803CJ8 02/28/2028 9725.05002/26/2024 249,236.55 4.980 5.050249,000.00 Minwest Bank MV2478 NCD 249,000.0060425SJQ3 01/29/2029 1,3081.00001/28/2021 223,895.82 1.024 1.039248,665.73 Morgan Stanley Bank NA2815 NCD 249,000.0061690UY20 02/02/2026 2164.25002/02/2023 249,024.90 4.191 4.250249,000.00 Morgan Stanley Bank NA3118 NCD 250,000.0061768UU47 04/12/2030 1,7464.50004/14/2025 250,000.00 4.438 4.500250,000.00 Mutual Savings Assoc Bank2955 NCD 249,000.0062835RCA7 01/31/2029 1,3104.90001/31/2024 249,141.93 4.837 4.904249,000.00 Amerant Bank3060 NCD 250,000.0002357QCJ4 09/20/2027 8113.85010/15/2024 248,887.50 3.939 3.994249,242.06 Noble Federal Credit Union Bk3083 NCD 250,000.0065504UAF4 11/09/2026 4964.50011/08/2024 250,072.50 4.441 4.502250,000.00 Oak Bank2938 NCD 249,000.00671082CN3 01/19/2027 5674.80001/19/2024 249,104.58 4.738 4.804249,000.00 Pacific Western Bank2420 NCD 249,000.0069506YSA8 09/30/2025 910.45009/30/2020 246,514.98 0.443 0.450249,000.00 Pathfinder Bank2429 NCD 249,000.0070320KAR2 10/14/2025 1050.50010/13/2020 246,233.61 0.533 0.540248,971.38 Peoples Bank - Pratt KS3031 NCD 249,000.00710649AD6 09/20/2029 1,5424.55009/23/2024 249,017.43 4.509 4.572248,789.38 People's Bank2468 NCD 249,000.00710665GD6 12/31/2029 1,6440.90012/30/2020 216,766.95 0.967 0.981248,128.50 Ponce De Leon Federal Bank2686 NCD 249,000.00732329BD8 09/15/2027 8063.50009/15/2022 246,495.06 3.453 3.501249,000.00 Pentagon Fed Cred Union2565 NCD 249,000.0070962LAE2 09/01/2026 4270.85009/01/2021 239,998.65 0.889 0.901248,854.43 Pitney Bowes Bank, Inc.2873 NCD 249,000.00724468AC7 04/13/2028 1,0174.35004/14/2023 251,300.76 4.290 4.350249,000.00 People Bank / Coldwater OH2853 NCD 249,000.00710275AD0 03/30/2027 6374.80003/30/2023 252,448.65 4.735 4.800249,000.00 Pony Express Bank2488 NCD 249,000.00732770BJ0 02/25/2030 1,7001.00002/24/2021 217,083.18 1.055 1.070248,227.55 Premier Community Bank2895 NCD 249,000.0074048CAT9 06/14/2027 7134.90005/12/2023 249,196.71 4.838 4.905249,000.00 Public Service Credit Union2796 NCD 249,000.00744562AS8 01/20/2028 9334.75001/20/2023 249,059.76 4.687 4.752249,000.00 Rockland Federal Credit Union3035 NCD 240,000.0077357DAK4 12/26/2025 1784.50010/01/2024 240,254.40 4.356 4.416240,094.72 Rogue Credit Union2717 NCD 249,000.0077535MAC7 11/10/2025 1324.90011/09/2022 249,169.32 4.868 4.935248,970.04 State Bank of India2403 NCD 249,000.00856285UJ8 09/04/2025 650.50009/04/2020 247,237.08 0.493 0.500249,000.00 Southern Bank2882 NCD 249,000.0084229LBV3 04/28/2028 1,0324.00004/28/2023 248,940.24 3.945 4.000249,000.00 Select Bank Forest VA2857 NCD 249,000.0081618LAE7 03/31/2028 1,0045.40003/31/2023 249,171.81 5.332 5.406249,000.00 Sharonview Fed Credit Union2718 NCD 249,000.00819866BR4 10/31/2025 1225.00010/31/2022 249,129.48 4.966 5.035248,972.28 Signature Federal Credit Union2804 NCD 249,000.0082671DAB3 01/31/2028 9444.40001/31/2023 251,517.39 4.341 4.401249,000.00 Skyla Federal Credit Union3042 NCD 250,000.0083086XAA8 10/08/2025 994.15010/08/2024 249,745.00 4.093 4.150250,000.00 Sunwest Bank2491 NCD 249,000.0086804DCQ9 02/17/2028 9610.80002/17/2021 229,202.01 0.861 0.873248,531.91 SPCO Credit Union2827 NCD 249,000.0078472EAC8 02/28/2028 9724.35002/27/2023 251,285.82 4.290 4.349249,000.00 Sherwin Williams Emp CU3082 NCD 250,000.0082436LAA3 11/06/2025 1284.30011/06/2024 249,850.00 4.246 4.305250,000.00 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
12 Packet Pg. 421 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 4
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Negotiable Certificates of Deposits
Synchrony Bank2563 NCD 249,000.0087165FZN7 08/20/2026 4150.90008/20/2021 240,402.03 0.887 0.900249,000.00 Tab Bank Inc.3039 NCD 250,000.0089388CJK5 04/13/2026 2863.70010/11/2024 249,277.50 3.652 3.703250,000.00 Texas Bank Henderson2464 NCD 249,000.00882214AA7 12/23/2025 1750.45012/23/2020 244,433.34 0.483 0.490248,952.27 Truist Bank3107 NCD 250,000.00897926BE0 03/28/2030 1,7314.45003/28/2025 249,542.50 4.389 4.450250,000.00 Toyota Financial Savings Bank2551 NCD 249,000.0089235MLC3 07/15/2026 3790.95007/15/2021 241,251.12 0.936 0.950249,000.00 UBS Financial Services, Inc.2992 NCD 249,000.0090355GLE4 03/01/2027 6084.60002/28/2024 251,470.08 4.540 4.603249,000.00 Ufirst Federal Credit Union2832 NCD 249,000.00902684AB5 08/25/2025 554.85002/24/2023 249,211.65 4.787 4.854249,000.00 Greenstate Credit Union2552 NCD 249,000.0039573LBM9 07/21/2026 3850.95007/21/2021 241,094.25 0.937 0.950249,000.00 USF Federal Credit Union2546 NCD 249,000.0090353EAR4 07/15/2031 2,2051.75007/15/2021 217,177.80 1.801 1.826247,947.61 Finwise Bank3013 NCD 249,000.0031810PCF4 03/22/2029 1,3605.10003/22/2024 249,109.56 5.033 5.103249,000.00 Webster Five Cents Savings3030 NCD 250,000.0094789PCJ1 08/30/2029 1,5214.55009/19/2024 250,027.50 4.533 4.596249,578.90 Western State Bank2342 NCD 248,000.0095960NKE6 11/13/2025 1351.05005/13/2020 244,944.64 1.035 1.050248,000.00 Wyoming Bank & Trust2446 NCD 249,000.0098321PAJ9 11/28/2025 1500.50011/27/2020 245,135.52 0.515 0.522248,969.33 Wings Financial Credit Union3043 NCD 250,000.0097412MAG4 04/10/2026 2834.00010/10/2024 249,732.50 3.945 4.000250,000.00 Workers Fed Credit Union3052 NCD 250,000.0098138MCU2 04/21/2028 1,0254.10010/21/2024 250,700.00 4.100 4.156250,000.00 West Town Bank and Trust2855 NCD 249,000.00956310BM7 03/28/2028 1,0015.45003/28/2023 249,216.63 5.381 5.456249,000.00 Subtotal and Average 27,810,883.92 27,826,000.00 27,323,132.73 2.980 3.022 808 Corporate Medium Term Bonds
Apple, Inc.2489 MTN 700,000.00037833EB2 02/08/2026 2220.70002/08/2021 685,146.00 0.684 0.694700,024.27 Apple, Inc.2667 MTN 750,000.00037833CJ7 02/09/2027 5883.35002/23/2022 742,312.50 2.115 2.145763,042.69 Apple, Inc.3027 MTN 1,000,000.00037833DP2 09/11/2029 1,5332.20009/19/2024 928,410.00 3.600 3.650944,839.75 Apple, Inc.3068 MTN 1,000,000.00037833DP2 09/11/2029 1,5332.20010/18/2024 928,410.00 3.996 4.052930,152.86 Apple, Inc.3090 MTN 1,000,000.00037833EC0 02/08/2028 9521.20003/13/2025 932,610.00 4.108 4.165927,998.95 Apple, Inc.3129 MTN 550,000.00037833CJ7 02/09/2027 5883.35005/01/2025 544,362.50 3.693 3.744546,636.64 Alphabet (Google) Inc.2507 MTN 200,000.0002079KAH0 08/15/2025 450.45003/01/2021 199,018.00 0.668 0.678199,945.19 Alphabet (Google) Inc.2675 MTN 1,000,000.0002079KAC1 08/15/2026 4101.99803/14/2022 978,370.00 2.197 2.228997,552.13 Alphabet (Google) Inc.2689 MTN 1,000,000.0002079KAJ6 08/15/2027 7750.80009/14/2022 938,940.00 3.442 3.489947,957.23 Alphabet (Google) Inc.2837 MTN 2,800,000.0002079KAJ6 08/15/2027 7750.80002/15/2023 2,629,032.00 3.964 4.0202,626,553.14 Johnson & Johnson2466 MTN 2,000,000.00478160CN2 09/01/2025 620.55012/23/2020 1,987,080.00 0.479 0.4862,000,210.19 Johnson & Johnson2508 MTN 2,000,000.00478160BY9 03/01/2026 2432.45003/01/2021 1,975,160.00 0.812 0.8232,020,164.24 Johnson & Johnson2509 MTN 1,000,000.00478160BY9 03/01/2026 2432.45003/01/2021 987,580.00 0.812 0.8241,010,079.53 Andrew W Mellon Foundation2976 MTN 1,000,000.0003444RAB4 08/01/2027 7610.94702/14/2024 939,190.00 4.389 4.450933,047.31 Andrew W Mellon Foundation3038 MTN 1,000,000.0003444RAB4 08/01/2027 7610.94710/01/2024 939,190.00 3.668 3.719945,654.41 Andrew W Mellon Foundation3044 MTN 870,000.0003444RAB4 08/01/2027 7610.94710/04/2024 817,095.30 3.765 3.817821,110.62 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
13 Packet Pg. 422 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 5
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Corporate Medium Term Bonds
Andrew W Mellon Foundation3067 MTN 1,000,000.0003444RAB4 08/01/2027 7610.94710/18/2024 939,190.00 3.970 4.026939,880.36 Microsoft Corporation2450 MTN 2,920,000.00594918BJ2 11/03/2025 1253.12511/18/2020 2,907,327.20 0.572 0.5802,943,557.74 Microsoft Corporation2506 MTN 180,000.00594918BJ2 11/03/2025 1253.12503/01/2021 179,218.80 0.753 0.763181,338.06 Microsoft Corporation3104 MTN 1,900,000.00594918BY9 02/06/2027 5853.30003/27/2025 1,880,582.00 4.051 4.1081,876,565.96 Stanford University2648 MTN 1,500,000.0085440KAC8 06/01/2027 7001.28901/07/2022 1,429,545.00 1.479 1.5001,494,191.76 Stanford University2658 MTN 500,000.0085440KAC8 06/01/2027 7001.28902/01/2022 476,515.00 1.849 1.875494,678.31 Stanford University2709 MTN 1,530,000.0085440KAC8 06/01/2027 7001.28910/19/2022 1,458,135.90 4.487 4.5501,444,608.17 Stanford University2761 MTN 450,000.0085440KAC8 06/01/2027 7001.28912/12/2022 428,863.50 4.142 4.200427,323.34 Stanford University2969 MTN 1,000,000.0085440KAC8 06/01/2027 7001.28902/12/2024 953,030.00 4.364 4.424944,637.51 University of Chicago3080 MTN 1,500,000.0091412NBH2 04/01/2029 1,3704.94710/25/2024 1,528,995.00 4.241 4.3001,532,734.96 University of Chicago3085 MTN 1,500,000.0091412NBH2 04/01/2029 1,3704.94710/28/2024 1,528,995.00 4.306 4.3661,529,364.41 Subtotal and Average 31,123,849.73 31,850,000.00 30,862,303.70 2.791 2.830 660 Federal Agency Bonds
Federal Agricultural Mortgage1580 474,000.0031315PEM7 08/04/2025 344.35004/08/2016 473,914.68 2.296 2.328474,785.50 Federal Agricultural Mortgage1710 1,500,000.0031315PRA9 02/03/2026 2174.81010/18/2016 1,504,500.00 2.131 2.1601,521,095.43 Federal Agricultural Mortgage2098 550,000.0031315PEM7 08/04/2025 344.35009/09/2019 549,901.00 1.659 1.683551,274.76 Federal Agricultural Mortgage2301 1,569,000.0031315PB99 11/19/2027 8712.85003/11/2020 1,532,442.30 1.050 1.0641,632,928.54 Federal Agricultural Mortgage2340 Call 2,000,000.0031422BZS2 05/13/2030 1,7771.50005/13/2020 1,779,460.00 1.479 1.5002,000,000.00 Federal Agricultural Mortgage2366 Call 1,750,000.0031422BF54 06/24/2030 1,8191.40006/24/2020 1,541,925.00 1.380 1.4001,750,000.00 Federal Agricultural Mortgage2367 Call 2,000,000.0031422BF54 06/24/2030 1,8191.40006/24/2020 1,762,200.00 1.380 1.4002,000,000.00 Federal Agricultural Mortgage2381 Call 1,500,000.0031422BH78 07/08/2030 1,8331.40007/08/2020 1,319,070.00 1.380 1.4001,500,000.00 Federal Agricultural Mortgage2425 Call 2,000,000.0031422BX54 09/27/2030 1,9141.30010/08/2020 1,746,920.00 1.286 1.3042,000,000.00 Federal Agricultural Mortgage2435 Call 2,000,000.0031422BZ45 10/21/2030 1,9381.28010/21/2020 1,741,200.00 1.262 1.2802,000,000.00 Federal Agricultural Mortgage2439 Call 2,000,000.0031422B2E9 10/29/2030 1,9461.34010/29/2020 1,745,920.00 1.321 1.3402,000,000.00 Federal Agricultural Mortgage2449 1,500,000.0031422B3D0 11/20/2030 1,9681.15011/20/2020 1,293,600.00 1.134 1.1501,500,000.00 Federal Agricultural Mortgage2458 Call 1,500,000.0031422B4A5 12/11/2030 1,9891.30012/11/2020 1,302,690.00 1.282 1.3001,500,000.00 Federal Agricultural Mortgage2459 Call 2,000,000.0031422B3W8 12/16/2030 1,9941.45012/16/2020 1,750,860.00 1.430 1.4502,000,000.00 Federal Agricultural Mortgage2461 1,000,000.0031422B3D0 11/20/2030 1,9681.15012/09/2020 862,400.00 1.144 1.160999,458.53 Federal Agricultural Mortgage2471 1,500,000.0031422B6K1 01/15/2026 1980.48001/15/2021 1,469,625.00 0.493 0.5001,499,838.33 Federal Agricultural Mortgage2473 Call 1,500,000.0031422B6A3 01/15/2031 2,0241.29001/15/2021 1,295,700.00 1.319 1.3381,496,261.25 Federal Agricultural Mortgage2484 Call 1,000,000.0031422B7E4 01/28/2031 2,0371.32001/28/2021 864,490.00 1.301 1.3201,000,000.00 Federal Agricultural Mortgage2496 Call 1,500,000.0031422XAW2 02/25/2031 2,0651.53002/25/2021 1,313,115.00 1.509 1.5301,500,000.00 Federal Agricultural Mortgage2513 1,000,000.0031422XCB6 03/04/2031 2,0721.47003/04/2021 870,590.00 1.581 1.602993,053.80 Federal Agricultural Mortgage2519 1,500,000.0031422XDX7 03/27/2026 2690.83003/29/2021 1,461,857.02 0.828 0.8401,499,889.04 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
14 Packet Pg. 423 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 6
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Federal Agency Bonds
Federal Agricultural Mortgage2524 1,500,000.0031422XDX7 03/27/2026 2690.83003/31/2021 1,461,857.02 0.913 0.9261,498,955.85 Federal Agricultural Mortgage2527 Call 1,500,000.0031422XEE8 04/07/2031 2,1062.07004/07/2021 1,339,980.00 2.074 2.1031,497,630.00 Federal Agricultural Mortgage2529 2,000,000.0031422XEL2 04/13/2028 1,0171.37504/15/2021 1,872,000.00 1.311 1.3302,002,379.65 Federal Agricultural Mortgage2530 1,500,000.0031422XFJ6 04/29/2031 2,1281.66004/29/2021 1,318,350.00 1.627 1.6501,500,786.75 Federal Agricultural Mortgage2533 1,500,000.0031422XDX7 03/27/2026 2690.83005/20/2021 1,461,857.02 0.864 0.8761,499,501.42 Federal Agricultural Mortgage2540 255,000.0031422XDX7 03/27/2026 2690.83006/08/2021 248,515.69 0.820 0.831254,996.78 Federal Agricultural Mortgage2593 1,000,000.0031422XNM0 10/05/2026 4611.05010/05/2021 964,400.00 1.035 1.0501,000,000.00 Federal Agricultural Mortgage2621 1,000,000.0031422XPS5 11/17/2026 5041.15011/17/2021 962,740.00 1.272 1.290998,131.73 Federal Agricultural Mortgage2625 1,000,000.0031422XQM7 12/01/2026 5181.32012/01/2021 964,100.00 1.301 1.3201,000,000.00 Federal Agricultural Mortgage2634 1,500,000.0031422XRK0 01/04/2027 5521.32001/04/2022 1,443,045.00 1.301 1.3201,500,000.00 Federal Agricultural Mortgage2640 Call 1,500,000.0031422XRY0 12/29/2031 2,3722.15012/29/2021 1,328,670.00 2.120 2.1501,500,000.00 Federal Farm Credit Bank .2314 1,000,000.003133EAG44 08/03/2026 3982.63003/13/2020 986,210.00 1.089 1.1041,015,993.60 Federal Farm Credit Bank .2371 Call 1,500,000.003133ELQ31 07/01/2030 1,8261.33007/01/2020 1,323,375.00 1.311 1.3301,500,000.00 Federal Farm Credit Bank .2372 Call 1,500,000.003133ELQ31 07/01/2030 1,8261.33007/01/2020 1,323,375.00 1.311 1.3301,500,000.00 Federal Farm Credit Bank .2391 Call 1,500,000.003133EL3H5 08/12/2025 420.57008/12/2020 1,493,340.00 0.587 0.5951,499,957.29 Federal Farm Credit Bank .2406 Call 1,500,000.003133EL4W1 08/25/2025 550.61009/03/2020 1,491,540.00 0.611 0.6201,499,977.40 Federal Farm Credit Bank .2408 Call 1,500,000.003133EL4W1 08/25/2025 550.61009/10/2020 1,491,540.00 0.611 0.6201,499,977.31 Federal Farm Credit Bank .2416 Call 1,500,000.003133EL7K4 09/16/2025 770.55009/22/2020 1,487,850.00 0.542 0.5491,500,000.00 Federal Farm Credit Bank .2417 Call 1,500,000.003133EMBH4 09/29/2025 900.53009/29/2020 1,486,500.00 0.522 0.5301,500,000.00 Federal Farm Credit Bank .2423 Call 1,500,000.003133EMBJ0 09/29/2025 900.53009/29/2020 1,485,615.00 0.537 0.5451,499,945.00 Federal Farm Credit Bank .2427 Call 2,000,000.003133EMAZ5 06/24/2030 1,8191.25010/01/2020 1,748,820.00 1.246 1.2631,998,720.38 Federal Farm Credit Bank .2442 Call 1,500,000.003133EMFG2 11/04/2030 1,9521.37011/04/2020 1,311,135.00 1.351 1.3701,500,000.00 Federal Farm Credit Bank .2443 Call 1,500,000.003133EMFG2 11/04/2030 1,9521.37011/04/2020 1,311,135.00 1.351 1.3701,500,000.00 Federal Farm Credit Bank .2472 Call 1,500,000.003133EMNB4 01/14/2031 2,0231.38001/14/2021 1,302,420.00 1.361 1.3801,500,000.00 Federal Farm Credit Bank .2525 Call 1,500,000.003133EMRE4 02/18/2031 2,0581.42004/01/2021 1,302,630.00 1.834 1.8591,466,192.92 Federal Farm Credit Bank .2538 Call 1,000,000.003133EMUG5 03/24/2031 2,0921.98005/27/2021 891,730.00 1.887 1.9131,003,435.42 Federal Farm Credit Bank .3037 1,330,000.003133EMZF2 05/17/2034 3,2421.91010/01/2024 1,081,742.20 3.991 4.0461,122,739.49 Federal Farm Credit Bank .3040 Call 1,000,000.003133ERVD0 04/01/2033 2,8315.10010/02/2024 1,000,090.00 5.030 5.0991,000,000.00 Federal Farm Credit Bank .3041 824,000.003133EPGG4 04/20/2033 2,8504.00010/03/2024 810,305.12 3.946 4.001823,924.78 Federal Farm Credit Bank .3045 1,000,000.003133EPDZ5 03/23/2033 2,8224.00010/04/2024 972,270.00 3.985 4.041997,326.58 Federal Farm Credit Bank .3057 1,000,000.003133ENVE7 04/25/2034 3,2203.40010/11/2024 919,810.00 4.290 4.350932,018.72 Federal Farm Credit Bank .3097 Call 1,500,000.003133ER5R8 03/03/2034 3,1675.25003/13/2025 1,500,015.00 5.176 5.2481,500,000.00 Federal Farm Credit Bank .3099 1,620,000.003133EN7L8 02/01/2035 3,5024.12503/20/2025 1,565,746.20 4.386 4.4461,579,817.75 Federal Farm Credit Bank .3105 1,500,000.003133EPGG4 04/20/2033 2,8504.00003/27/2025 1,475,070.00 4.378 4.4391,457,166.86 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
15 Packet Pg. 424 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 7
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Federal Agency Bonds
Federal Farm Credit Bank .3113 Call 1,985,000.003133ETAF4 03/19/2031 2,0874.90003/27/2025 1,992,404.05 4.851 4.9191,983,101.71 Federal Farm Credit Bank .3115 1,000,000.003133ETBB2 03/27/2035 3,5564.37504/03/2025 984,570.00 4.333 4.394998,507.46 Federal Farm Credit Bank .3119 Call 1,500,000.003133ER4B4 08/19/2032 2,6065.33004/03/2025 1,499,415.00 5.255 5.3281,500,000.00 Federal Farm Credit Bank .3124 Call 1,500,000.003133ETBS5 04/03/2034 3,1985.45004/17/2025 1,499,460.00 5.375 5.4501,500,000.00 Federal Home Loan Bank2347 Call 1,500,000.003130AJMF3 11/28/2028 1,2461.32005/28/2020 1,378,485.00 1.301 1.3201,500,000.00 Federal Home Loan Bank2358 Call 1,000,000.003130AJP78 06/11/2029 1,4411.40006/11/2020 908,600.00 1.380 1.4001,000,000.00 Federal Home Loan Bank2361 Call 1,000,000.003130AJP78 06/11/2029 1,4411.40006/11/2020 908,600.00 1.427 1.447998,246.91 Federal Home Loan Bank2368 Call 900,000.003130AJR76 06/29/2029 1,4591.25006/29/2020 811,584.00 1.232 1.250900,000.00 Federal Home Loan Bank2369 Call 1,500,000.003130AJRG6 06/24/2030 1,8191.36006/24/2020 1,320,960.00 1.341 1.3601,500,000.00 Federal Home Loan Bank2375 Call 1,500,000.003130AJSR1 07/09/2030 1,8341.39007/09/2020 1,321,290.00 1.370 1.3901,500,000.00 Federal Home Loan Bank2377 Call 1,500,000.003130AJSR1 07/09/2030 1,8341.39007/09/2020 1,321,290.00 1.370 1.3901,500,000.00 Federal Home Loan Bank2384 Call 1,500,000.003130AJSR1 07/09/2030 1,8341.39007/09/2020 1,321,290.00 1.382 1.4011,499,171.33 Federal Home Loan Bank2395 Call 1,500,000.003130AJZ36 08/27/2025 570.60008/27/2020 1,491,045.00 0.611 0.6201,499,953.33 Federal Home Loan Bank2399 Call 1,500,000.003130AJZ36 08/27/2025 570.60008/27/2020 1,491,045.00 0.611 0.6201,499,953.33 Federal Home Loan Bank2405 Call 1,500,000.003130AK3Z7 09/29/2025 900.57009/29/2020 1,485,705.00 0.582 0.5901,499,926.67 Federal Home Loan Bank2411 Call 1,180,000.003130AJZ36 08/27/2025 570.60009/16/2020 1,172,955.40 0.591 0.5991,180,000.00 Federal Home Loan Bank2419 1,500,000.003130AKAZ91 09/29/2025 900.52009/29/2020 1,485,525.00 0.512 0.5201,500,000.00 Federal Home Loan Bank2445 Call 1,200,000.003130AJQS1 06/25/2030 1,8201.35011/04/2020 1,056,156.00 1.334 1.3531,199,801.53 Federal Home Loan Bank2475 Call 1,500,000.003130AKQN9 01/09/2031 2,0181.40001/28/2021 1,300,710.00 1.380 1.4001,500,000.00 Federal Home Loan Bank2476 Call 1,500,000.003130AKQV1 01/28/2031 2,0371.40001/28/2021 1,298,505.00 1.380 1.4001,500,000.00 Federal Home Loan Bank2485 Call 1,500,000.003130AKVH6 02/10/2031 2,0501.35002/10/2021 1,293,255.00 1.331 1.3501,500,000.00 Federal Home Loan Bank2490 Call 2,000,000.003130AKYB6 02/18/2031 2,0581.40002/18/2021 1,727,520.00 1.380 1.4002,000,000.00 Federal Home Loan Bank2494 Call 1,500,000.003130AL2J2 02/26/2031 2,0661.50002/26/2021 1,302,480.00 1.479 1.5001,500,000.00 Federal Home Loan Bank2500 Call 1,500,000.003130ALF66 02/25/2031 2,0651.62502/25/2021 1,311,810.00 1.602 1.6251,500,000.00 Federal Home Loan Bank2520 Call 1,925,000.003130ALF33 03/16/2026 2580.75003/25/2021 1,878,665.25 0.853 0.8651,923,465.16 Federal Home Loan Bank2607 Call 1,000,000.003130APPJ8 11/04/2031 2,3172.00011/04/2021 876,130.00 1.972 2.0001,000,000.00 Federal Home Loan Bank2613 Call 1,000,000.003130APV77 12/10/2026 5271.50012/10/2021 965,470.00 1.479 1.5001,000,000.00 Federal Home Loan Bank2616 Call 1,000,000.003130APW84 12/03/2026 5201.50012/03/2021 965,640.00 1.479 1.5001,000,000.00 Federal Home Loan Bank2618 Call 1,000,000.003130APXD2 12/17/2026 5341.55012/17/2021 965,570.00 1.528 1.5501,000,000.00 Federal Home Loan Bank2619 Call 1,000,000.003130APWY7 12/07/2026 5241.35012/07/2021 963,370.00 1.331 1.3501,000,000.00 Federal Home Loan Bank2620 Call 1,000,000.003130APXT7 12/17/2026 5341.60012/17/2021 967,120.00 1.578 1.6001,000,000.00 Federal Home Loan Bank2659 Call 1,000,000.003130AQSM6 02/25/2027 6042.05002/25/2022 969,640.00 2.021 2.0501,000,000.00 Federal Home Loan Bank2662 Call 1,000,000.003130AQX65 03/04/2027 6112.25003/04/2022 972,620.00 2.219 2.2501,000,000.00 Federal Home Loan Bank2663 Call 1,000,000.003130AQYA5 02/24/2027 6032.25002/28/2022 972,770.00 2.219 2.2501,000,000.00 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
16 Packet Pg. 425 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 8
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Federal Agency Bonds
Federal Home Loan Bank2664 Call 1,500,000.003130AQYG2 02/25/2027 6042.50002/28/2022 1,464,780.00 2.470 2.5041,500,000.00 Federal Home Loan Bank2665 Call 1,000,000.003130AQZD8 02/25/2027 6042.62502/25/2022 978,370.00 2.589 2.6251,000,000.00 Federal Home Loan Bank2802 Call 1,500,000.003130AULM4 01/26/2033 2,7665.62001/26/2023 1,500,210.00 5.543 5.6201,500,000.00 Federal Home Loan Bank2988 610,000.003130ATS57 03/10/2028 9834.50002/21/2024 622,010.90 4.223 4.282613,241.07 Federal Home Loan Bank3025 Call 1,000,000.003130B2RP2 09/25/2034 3,3735.25009/25/2024 999,590.00 5.178 5.2501,000,000.00 Federal Home Loan Bank3036 1,000,000.003130AWGR5 06/12/2026 3464.37510/01/2024 1,002,820.00 3.580 3.6301,006,753.03 Federal Home Loan Bank3046 1,000,000.003130B0X87 03/10/2034 3,1744.75010/07/2024 1,022,380.00 4.138 4.1961,039,377.63 Federal Home Loan Bank3048 Call 1,500,000.003130B32V4 10/07/2031 2,2894.25010/08/2024 1,484,895.00 4.191 4.2491,500,000.00 Federal Home Loan Bank3051 Call 1,000,000.003130B3AN3 10/25/2034 3,4035.50010/25/2024 1,000,090.00 5.424 5.5001,000,000.00 Federal Home Loan Bank3058 1,000,000.003130AWV23 09/09/2033 2,9924.50010/11/2024 1,006,490.00 4.244 4.3031,013,232.92 Federal Home Loan Bank3063 1,000,000.003130B0X87 03/10/2034 3,1744.75010/17/2024 1,022,380.00 4.173 4.2311,036,858.01 Federal Home Loan Bank3077 1,000,000.003130B0X87 03/10/2034 3,1744.75010/24/2024 1,022,380.00 4.399 4.4611,020,297.72 Federal Home Loan Bank3081 Call 1,500,000.003130B3FV0 11/06/2034 3,4155.48011/06/2024 1,495,455.00 5.404 5.4801,500,000.00 Federal Home Loan Bank3086 Call 2,000,000.003130B3D75 10/17/2034 3,3955.00010/28/2024 1,967,880.00 4.931 4.9992,000,000.00 Federal Home Loan Bank3088 Call 800,000.003130B3HR7 11/04/2031 2,3175.30011/04/2024 800,016.00 5.227 5.300800,000.00 Federal Home Loan Bank3111 Call 1,500,000.003130B44G3 12/27/2034 3,4665.60003/27/2025 1,499,835.00 5.446 5.5221,500,000.00 Federal Home Loan Bank3123 Call 1,500,000.003130B5SR0 04/11/2035 3,5715.44004/11/2025 1,499,325.00 5.365 5.4401,500,000.00 Federal Home Loan Bank3128 1,660,000.003130AV5P3 03/08/2030 1,7114.37505/01/2025 1,699,574.40 3.706 3.7571,703,440.97 Fed. Home Loan Mortgage Corp.2345 Call 455,000.003134GVUA4 05/18/2028 1,0521.20005/18/2020 422,672.25 1.183 1.200455,000.00 Fed. Home Loan Mortgage Corp.2370 Call 1,500,000.003134GV3B2 06/28/2030 1,8231.40006/30/2020 1,319,955.00 1.380 1.4001,500,000.00 Fed. Home Loan Mortgage Corp.2373 Call 1,500,000.003134GV3U0 06/29/2029 1,4591.25006/29/2020 1,353,570.00 1.232 1.2501,500,000.00 Fed. Home Loan Mortgage Corp.2379 Call 1,500,000.003134GV4E5 12/29/2028 1,2771.20007/01/2020 1,372,725.00 1.183 1.1991,500,000.00 Fed. Home Loan Mortgage Corp.2380 Call 1,500,000.003134GV5D6 01/08/2029 1,2871.20007/08/2020 1,367,190.00 1.183 1.2001,500,000.00 Fed. Home Loan Mortgage Corp.2382 Call 1,500,000.003134GV5A2 07/15/2030 1,8401.37507/15/2020 1,316,730.00 1.356 1.3751,500,000.00 Fed. Home Loan Mortgage Corp.2386 Call 1,500,000.003134GV7L6 07/29/2030 1,8541.35007/29/2020 1,315,005.00 1.331 1.3501,500,000.00 Fed. Home Loan Mortgage Corp.2387 Call 1,500,000.003134GV7L6 07/29/2030 1,8541.35007/29/2020 1,315,005.00 1.331 1.3501,500,000.00 Fed. Home Loan Mortgage Corp.2396 Call 1,000,000.003134GWNC6 08/19/2025 490.62508/20/2020 994,930.00 0.616 0.6251,000,000.00 Fed. Home Loan Mortgage Corp.2400 Call 1,500,000.003134GWC53 09/15/2025 760.65009/15/2020 1,488,375.00 0.641 0.6501,500,000.00 Fed. Home Loan Mortgage Corp.2404 Call 1,447,000.003134GWA55 09/09/2025 700.65009/09/2020 1,436,653.95 0.641 0.6501,447,000.00 Fed. Home Loan Mortgage Corp.2407 Call 1,500,000.003134GWD52 09/02/2025 630.68009/04/2020 1,490,415.00 0.670 0.6791,500,000.00 Fed. Home Loan Mortgage Corp.2409 Call 1,500,000.003134GWP75 09/23/2025 840.62509/23/2020 1,487,085.00 0.616 0.6251,500,000.00 Fed. Home Loan Mortgage Corp.2410 Call 1,000,000.003134GWP75 09/23/2025 840.62509/23/2020 991,390.00 0.616 0.6251,000,000.00 Fed. Home Loan Mortgage Corp.2418 1,500,000.003134GWVV5 10/15/2025 1060.50010/15/2020 1,483,185.00 0.493 0.5001,500,000.00 Fed. Home Loan Mortgage Corp.2421 Call 2,000,000.003134GWW93 09/30/2025 910.55009/30/2020 1,981,340.00 0.542 0.5502,000,000.00 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
17 Packet Pg. 426 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 9
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Federal Agency Bonds
Fed. Home Loan Mortgage Corp.2422 Call 1,500,000.003134GWW93 09/30/2025 910.55009/30/2020 1,486,005.00 0.542 0.5501,500,000.00 Fed. Home Loan Mortgage Corp.2424 Call 1,500,000.003134GWXK7 09/30/2025 910.55009/30/2020 1,485,720.00 0.542 0.5501,500,000.00 Fed. Home Loan Mortgage Corp.2426 Call 1,500,000.003134GWXX9 10/15/2025 1060.55010/15/2020 1,483,365.00 0.542 0.5501,500,000.00 Fed. Home Loan Mortgage Corp.2428 Call 1,500,000.003134GWY26 10/08/2025 990.57010/08/2020 1,484,505.00 0.562 0.5701,500,000.00 Fed. Home Loan Mortgage Corp.2430 Call 1,500,000.003134GWYZ3 10/28/2025 1190.53010/28/2020 1,481,415.00 0.522 0.5301,500,000.00 Fed. Home Loan Mortgage Corp.2431 Call 1,500,000.003134GWZ33 10/22/2030 1,9391.25010/22/2020 1,303,695.00 1.232 1.2501,500,000.00 Fed. Home Loan Mortgage Corp.2432 Call 1,500,000.003134GWZL3 10/29/2025 1200.57010/29/2020 1,481,325.00 0.562 0.5701,500,000.00 Fed. Home Loan Mortgage Corp.2433 Call 2,000,000.003134GW3T1 10/28/2030 1,9451.40010/28/2020 1,751,720.00 1.380 1.4002,000,000.00 Fed. Home Loan Mortgage Corp.2434 Call 1,500,000.003134GW3H7 10/29/2025 1200.61010/29/2020 1,482,030.00 0.601 0.6101,500,000.00 Fed. Home Loan Mortgage Corp.2436 Call 2,000,000.003134GWZZ2 10/28/2030 1,9451.30010/28/2020 1,742,240.00 1.282 1.3002,000,000.00 Fed. Home Loan Mortgage Corp.2437 Call 750,000.003134GW3Z7 10/28/2025 1190.60010/28/2020 740,872.50 0.591 0.600750,000.00 Fed. Home Loan Mortgage Corp.2438 Call 1,500,000.003134GW3X2 10/27/2025 1180.62510/27/2020 1,482,000.00 0.616 0.6251,500,000.00 Fed. Home Loan Mortgage Corp.2440 Call 1,500,000.003134GW6N1 11/05/2030 1,9531.40011/05/2020 1,313,175.00 1.380 1.4001,500,000.00 Fed. Home Loan Mortgage Corp.2444 Call 1,500,000.003134GW6N1 11/05/2030 1,9531.40011/05/2020 1,313,175.00 1.380 1.4001,500,000.00 Federal National Mortgage Asso1715 500,000.0031364CCC0 04/30/2026 3037.12511/10/2016 511,775.00 2.367 2.400517,457.75 Federal National Mortgage Asso2392 Call 1,000,000.003136G4R62 08/28/2025 580.62508/28/2020 994,000.00 0.616 0.6251,000,000.00 Federal National Mortgage Asso2393 Call 1,000,000.003136G4S87 08/27/2025 570.65008/27/2020 994,150.00 0.641 0.6501,000,000.00 Federal National Mortgage Asso2394 Call 1,500,000.003136G4Q97 08/27/2025 570.65008/27/2020 1,491,210.00 0.641 0.6501,500,000.00 Federal National Mortgage Asso2397 Call 1,500,000.003136G4V59 08/27/2025 570.62508/27/2020 1,491,180.00 0.616 0.6251,500,000.00 Federal National Mortgage Asso2412 Call 1,500,000.003136G44G5 09/22/2025 830.51509/22/2020 1,486,875.00 0.507 0.5151,500,000.00 Federal National Mortgage Asso2413 Call 1,500,000.003136G43L5 09/30/2025 910.55009/30/2020 1,485,240.00 0.542 0.5501,500,000.00 Federal National Mortgage Asso2415 Call 1,500,000.003136G44L4 09/25/2025 860.60009/25/2020 1,486,695.00 0.591 0.6001,500,000.00 Federal National Mortgage Asso2460 2,000,000.003135G05Q2 08/05/2030 1,8610.87512/07/2020 1,727,940.00 1.139 1.1551,973,075.32 Federal National Mortgage Asso2463 Call 1,500,000.003135GAAS0 12/23/2030 2,0011.40012/23/2020 1,308,900.00 1.380 1.4001,500,000.00 Federal National Mortgage Asso2467 Call 1,000,000.003135G06Q1 12/30/2025 1820.64012/30/2020 982,540.00 0.597 0.6051,000,168.06 Tennessee Valley Authority1508 1,000,000.00880591CJ9 11/01/2025 1236.75011/20/2015 1,007,200.00 2.807 2.8461,011,261.77 Tennessee Valley Authority1589 775,000.00880591CJ9 11/01/2025 1236.75004/18/2016 780,580.00 2.337 2.370785,073.96 Tennessee Valley Authority1714 1,250,000.00880591CJ9 11/01/2025 1236.75011/10/2016 1,259,000.00 2.317 2.3501,266,441.97 Subtotal and Average 205,688,968.47 205,809,000.00 193,755,047.95 1.779 1.803 1,370 Treasury Securities (Notes)
U.S. Treasury2505 TB 1,500,000.0091282CBC4 12/31/2025 1830.37502/26/2021 1,471,590.00 0.731 0.7421,497,295.97 U.S. Treasury2516 TB 1,500,000.0091282CBQ3 02/28/2026 2420.50003/09/2021 1,464,030.00 0.819 0.8311,496,781.55 U.S. Treasury2587 TB 1,500,000.0091282CCP4 07/31/2026 3950.62509/24/2021 1,447,095.00 0.888 0.9011,495,626.67 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
18 Packet Pg. 427 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 10
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Subtotal and Average 4,489,704.19 4,500,000.00 4,382,715.00 0.813 0.825 273 Municipal Bonds
County of Alameda2173 MUN 290,000.00010878AS5 08/01/2026 3964.00012/05/2019 289,944.90 2.139 2.168295,329.29 County of Alameda2691 MUN 1,500,000.00010878BK1 08/01/2031 2,2223.69909/21/2022 1,461,435.00 4.281 4.3401,451,826.87 County of Alameda2925 MUN 1,250,000.00010878BJ4 08/01/2030 1,8573.64901/16/2024 1,226,537.50 4.193 4.2511,216,877.39 Alameda County Joint Pws Auth.2566 MUN 110,000.00010831DT9 06/01/2026 3353.39508/13/2021 109,235.50 0.925 0.938112,416.17 State of Alabama2835 MUN 1,000,000.00010411CT1 11/01/2026 4883.45002/15/2023 991,620.00 4.142 4.200990,813.17 Antelope Valley Community Coll2694 MUN 1,080,000.0003667PHJ4 08/01/2029 1,4921.66109/23/2022 984,398.40 4.389 4.450974,972.67 Antelope Valley Community Coll2784 MUN 675,000.0003667PHL9 08/01/2031 2,2221.86101/05/2023 589,572.00 4.911 4.980571,771.59 City of Auburn3001 MUN 445,000.0005028XAH7 06/01/2030 1,7962.20603/01/2024 403,882.00 4.813 4.880395,080.49 City of Auburn3002 MUN 265,000.0005028XAG9 06/01/2029 1,4312.05603/01/2024 244,499.60 4.734 4.800240,080.12 Bay Area Toll Authority2558 MUN 1,750,000.00072024XC1 04/01/2026 2741.07907/26/2021 1,709,155.00 0.739 0.7501,754,234.27 Berkeley Unified School Dist.2817 MUN 250,000.00084154G49 08/01/2031 2,2221.85601/26/2023 218,910.00 4.524 4.586215,935.32 Beverly Hills Public Fing Auth2612 MUN 350,000.00088006KA8 06/01/2026 3351.14711/15/2021 340,721.50 1.183 1.200349,834.80 Beverly Hills Public Fing Auth2680 MUN 490,000.00088006KB6 06/01/2027 7001.32704/01/2022 466,259.50 2.810 2.850476,785.02 Beverly Hills Unified Sch Dist2682 MUN 920,000.00088023PL4 08/01/2026 3962.70004/13/2022 907,524.80 2.644 2.681920,180.79 Burlingame School District1548 MUN 120,000.00121457EQ4 08/01/2025 316.23802/24/2016 120,188.40 3.557 3.606120,225.45 City of Buena Park2734 MUN 685,000.00119174AJ9 07/01/2030 1,8261.88211/18/2022 610,615.85 5.076 5.147593,435.25 Burbank Unified School Distri.2570 MUN 1,000,000.0012082SDN1 08/01/2026 3961.36708/30/2021 970,910.00 0.947 0.9601,004,294.18 Cabrillo Community College Dis2119 MUN 2,000,000.00127109QD1 08/01/2027 7612.38510/08/2019 1,937,260.00 2.342 2.3752,000,000.00 Carlsbad Unified School Dist .1857 MUN 305,000.00142665DJ4 08/01/2026 3965.23409/27/2017 308,748.45 2.850 2.890311,789.56 CA Infrastructure -Econ Dev Bk2666 MUN 210,000.0013034AL73 10/01/2026 4571.03502/16/2022 202,274.10 2.224 2.254206,974.86 CA Infrastructure -Econ Dev Bk2893 MUN 500,000.0013034AL99 10/01/2028 1,1881.46605/08/2023 461,370.00 3.728 3.780466,266.91 CA ST Dept of WTR Resources2633 MUN 180,000.0013067WRC8 12/01/2025 1530.79012/13/2021 177,388.20 1.301 1.320179,613.91 CA ST Dept of WTR Resources2645 MUN 300,000.0013067WRD6 12/01/2026 5180.92012/23/2021 287,490.00 1.430 1.450297,833.22 CA ST Dept of WTR Resources2944 MUN 225,000.0013067WRK0 12/01/2032 2,7101.60901/24/2024 185,620.50 4.589 4.653183,742.97 CA ST Dept of WTR Resources3100 MUN 310,000.0013067WTC6 12/01/2032 2,7102.08203/20/2025 264,935.30 4.438 4.500263,438.51 Chabot-Las Positas CCD2564 MUN 285,000.0015722TJR3 08/01/2026 3961.08008/16/2021 276,088.05 0.897 0.910285,511.85 Chabot-Las Positas CCD2589 MUN 125,000.0015722TJQ5 08/01/2025 310.88009/29/2021 124,651.25 0.897 0.910124,996.91 Chabot-Las Positas CCD2830 MUN 205,000.0015722TJS1 08/01/2027 7611.28702/13/2023 194,309.25 4.296 4.356193,203.89 Chabot-Las Positas CCD2842 MUN 1,000,000.0015722TJQ5 08/01/2025 310.88003/07/2023 997,210.00 4.783 4.850996,911.81 Chaffey Community Clg District2698 MUN 300,000.00157432KL8 06/01/2030 1,7962.32910/06/2022 277,677.00 4.931 5.000267,588.76 City of Chula Vista2653 MUN 1,000,000.0017131RAU0 06/01/2026 3350.84001/10/2022 969,190.00 1.676 1.700992,433.59 City of Chula Vista2923 MUN 1,000,000.0017131RAZ9 06/01/2031 2,1611.82801/10/2024 864,840.00 4.753 4.820852,532.92 City of Chula Vista3075 MUN 500,000.0017131RAZ9 06/01/2031 2,1611.82810/24/2024 432,420.00 4.529 4.592430,127.58 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
19 Packet Pg. 428 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 11
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
Calleguas Municipal Water Dist2544 MUN 550,000.0013124MCE3 07/01/2029 1,4611.86507/01/2021 506,511.50 1.425 1.445558,695.50 Calleguas Municipal Water Dist2646 MUN 600,000.0013124MCB9 07/01/2026 3651.09712/27/2021 582,678.00 1.233 1.250599,108.87 Calleguas Municipal Water Dist2791 MUN 170,000.0013124MCB9 07/01/2026 3651.09701/09/2023 165,092.10 4.625 4.690164,423.57 Campbell Union High Sch Dist2753 MUN 500,000.00134159A77 08/01/2029 1,4921.47212/07/2022 454,335.00 4.714 4.780442,716.67 City of Corona2601 MUN 500,000.0021969AAJ1 05/01/2030 1,7652.24210/14/2021 450,165.00 2.052 2.081503,545.60 City of Corona2943 MUN 1,000,000.0021969AAH5 05/01/2029 1,4002.04201/24/2024 915,180.00 4.562 4.626912,958.88 City of Corona2967 MUN 325,000.0021969AAH5 05/01/2029 1,4002.04202/12/2024 297,433.50 4.694 4.760295,318.80 City of Corona3054 MUN 1,000,000.0021969AAG7 05/01/2028 1,0351.86310/10/2024 932,800.00 4.097 4.154940,217.33 State of Colorado HSG & FIN Au3059 MUN 1,500,000.0019648GSA1 05/01/2034 3,2264.85011/13/2024 1,487,220.00 4.672 4.7371,519,028.36 City of Covina2968 MUN 400,000.00223047AG6 08/01/2028 1,1271.76702/12/2024 371,964.00 4.645 4.710367,606.49 City of Covina2990 MUN 1,000,000.00223047AH4 08/01/2029 1,4921.91602/23/2024 912,150.00 4.842 4.909893,841.68 Contra Costa Community College2103 MUN 400,000.00212204JJ1 08/01/2028 1,1272.21309/12/2019 378,736.00 2.071 2.100401,263.02 Contra Costa Community College2120 MUN 990,000.00212204JK8 08/01/2029 1,4922.26309/20/2019 921,056.40 2.505 2.539980,155.93 Contra Costa Community College2244 MUN 1,500,000.00212204JK8 08/01/2029 1,4922.26302/07/2020 1,395,540.00 2.100 2.1301,507,337.08 Contra Costa Community College2291 MUN 320,000.00212204JF9 08/01/2025 311.91803/09/2020 319,350.40 1.128 1.143320,199.66 Contra Costa Community College2555 MUN 1,000,000.00212204LM1 08/01/2026 3961.30008/02/2021 970,010.00 0.764 0.7751,005,567.09 Desert Community Clg Dist2611 MUN 200,000.00250375JX1 08/01/2027 7611.16911/12/2021 189,102.00 1.479 1.500198,682.13 Desert Community Clg Dist2738 MUN 200,000.00250375LA8 08/01/2027 7613.00011/23/2022 196,358.00 4.965 5.034192,529.32 Desert Community Clg Dist3112 MUN 775,000.00250375LW0 08/01/2031 2,2222.30803/27/2025 695,314.50 4.329 4.390690,107.78 City of Downey2978 MUN 185,000.00260888AJ1 06/01/2031 2,1611.95002/15/2024 160,981.45 4.842 4.910158,036.24 Desert Sands Unif Sch District2635 MUN 880,000.00250433UA5 08/01/2026 3961.98212/16/2021 861,528.80 1.390 1.410885,258.28 City of El Segundo2696 MUN 935,000.00284035AK8 07/01/2031 2,1912.26709/29/2022 837,675.85 5.118 5.190804,526.92 City of Fairfield3049 MUN 1,000,000.0030421VBQ1 06/01/2034 3,2574.75010/08/2024 987,470.00 4.734 4.800996,403.71 City of Fairfield3050 MUN 995,000.0030421VBQ1 06/01/2034 3,2574.75010/08/2024 982,532.65 4.734 4.800991,421.69 Fremon Union High School Distr1646 MUN 260,000.00357172VA0 02/01/2026 2156.08006/28/2016 261,606.80 2.994 3.035264,032.15 Fremon Union High School Distr2595 MUN 235,000.00357172C52 08/01/2031 2,2222.02010/01/2021 207,824.60 1.825 1.851237,193.80 Foothill-De Anza Comm Clg Dist2818 MUN 540,000.00345102PG6 08/01/2025 310.90601/27/2023 538,552.80 4.172 4.230538,594.87 Fullerton School District1916 MUN 995,000.00359819DN6 08/01/2026 3963.16002/14/2018 985,069.90 3.028 3.070995,846.91 Fullerton School District1917 MUN 750,000.00359819DM8 08/01/2025 313.04002/14/2018 749,280.00 2.959 3.000750,022.11 Fullerton School District2085 MUN 365,000.00359819DN6 08/01/2026 3963.16008/29/2019 361,357.30 1.913 1.940369,493.28 State of Georgia1775 MUN 250,000.00373384RX6 10/01/2025 924.00004/10/2017 249,842.50 2.739 2.777250,676.84 State of Georgia1919 MUN 1,095,000.00373384RY4 10/01/2026 4574.31001/26/2018 1,098,952.95 2.979 3.0201,110,441.83 State of Georgia1945 MUN 200,000.00373384RY4 10/01/2026 4574.31003/19/2018 200,722.00 3.204 3.248202,299.07 State of Georgia1967 MUN 350,000.00373385BU6 02/01/2027 5802.72010/31/2018 343,623.00 3.412 3.460346,456.69 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
20 Packet Pg. 429 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 12
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
State of Georgia2229 MUN 425,000.00373384RY4 10/01/2026 4574.31001/31/2020 426,534.25 1.837 1.863437,179.94 State of Georgia2953 MUN 1,000,000.00373384X76 02/01/2034 3,1374.00001/29/2024 964,710.00 4.438 4.500965,745.78 State of Georgia2956 MUN 1,250,000.00373384X76 02/01/2034 3,1374.00001/30/2024 1,205,887.50 4.438 4.5001,207,170.33 State of Georgia2981 MUN 1,000,000.00373384TP1 07/01/2025 04.15002/16/2024 1,000,000.00 4.714 4.7801,000,000.00 State of Georgia3084 MUN 1,500,000.00373384PD2 11/01/2029 1,5845.11410/25/2024 1,516,365.00 4.586 4.6501,526,613.29 City of Glendora2109 MUN 1,345,000.00378612AL9 06/01/2028 1,0662.26509/16/2019 1,271,576.45 2.318 2.3501,341,990.80 City of Glendora2137 MUN 400,000.00378612AL9 06/01/2028 1,0662.26510/02/2019 378,164.00 2.194 2.225400,420.13 City of Glendora2590 MUN 1,365,000.00378612AJ4 06/01/2026 3352.10809/29/2021 1,337,249.55 1.075 1.0901,377,383.36 Glendale Unified School Dist.2739 MUN 535,000.00378460A74 09/01/2027 7921.11311/25/2022 502,482.70 4.686 4.751497,631.84 Glendale Unified School Dist.2916 MUN 1,095,000.00378460C64 09/01/2032 2,6191.83012/22/2023 914,576.85 4.438 4.499923,121.32 State of Hawaii1685 MUN 1,045,000.00419792DA1 10/01/2026 4573.15010/19/2016 1,034,111.10 2.431 2.4651,052,886.07 State of Hawaii1995 MUN 800,000.00419791YT9 02/01/2026 2155.33012/06/2018 804,808.00 3.304 3.350808,152.73 State of Hawaii2820 MUN 700,000.00419792F92 08/01/2025 311.03301/30/2023 698,033.00 4.172 4.230698,247.75 State of Hawaii2926 MUN 1,000,000.00419792YW0 08/01/2031 2,2221.59501/16/2024 860,380.00 4.389 4.450853,814.48 State of Hawaii2931 MUN 1,165,000.00419792M78 10/01/2032 2,6494.82101/17/2024 1,195,965.70 4.439 4.5011,187,159.68 State of Hawaii2948 MUN 1,075,000.00419792M86 10/01/2033 3,0144.84101/25/2024 1,099,209.00 4.557 4.6211,090,597.40 State of Hawaii2952 MUN 1,255,000.00419792M78 10/01/2032 2,6494.82101/29/2024 1,288,357.90 4.508 4.5711,273,612.51 State of Hawaii3109 MUN 715,000.00419792B96 10/01/2034 3,3792.42203/27/2025 598,648.05 4.734 4.800589,902.77 State of Hawaii3122 MUN 1,500,000.00419792YY6 08/01/2033 2,9531.86504/03/2025 1,235,535.00 4.418 4.4801,237,736.01 City of Huntington Beach2560 MUN 1,000,000.00446201AE5 06/15/2026 3491.34408/12/2021 974,670.00 0.909 0.9211,003,933.40 City of Huntington Beach2562 MUN 1,000,000.00446201AE5 06/15/2026 3491.34408/13/2021 974,670.00 0.927 0.9391,003,763.86 City of Huntington Beach2790 MUN 805,000.00446216HN6 05/01/2029 1,4001.73101/09/2023 734,916.70 4.931 5.000719,379.53 City of Huntington Beach2840 MUN 175,000.00446201AE5 06/15/2026 3491.34403/03/2023 170,567.25 5.340 5.414168,838.41 Liberty Union High Sch Distr2768 MUN 530,000.00530319SP8 08/01/2028 1,1271.48412/15/2022 492,195.10 4.614 4.678484,556.29 City of La Habra2660 MUN 500,000.00503433AK0 08/01/2031 2,2222.67302/07/2022 456,270.00 2.638 2.675499,935.85 City of La Habra2941 MUN 500,000.00503433AT1 08/01/2030 1,8572.57301/22/2024 463,985.00 4.686 4.751452,871.07 City of Los Angeles1969 MUN 295,000.00544351NP0 09/01/2026 4273.30011/02/2018 292,471.85 3.530 3.579294,164.48 City of Los Angeles2008 MUN 1,000,000.00544351MS5 09/01/2026 4273.50001/07/2019 993,690.00 3.077 3.1191,003,911.76 City of Los Angeles2200 MUN 840,000.00544351NQ8 09/01/2027 7923.40001/06/2020 830,785.20 2.360 2.393856,647.55 City of Los Angeles2213 MUN 985,000.00544351LQ0 09/01/2029 1,5233.05001/22/2020 941,630.45 2.413 2.4461,006,942.52 City of Los Angeles2283 MUN 1,000,000.00544351KV0 09/01/2026 4273.15003/05/2020 989,740.00 1.519 1.5411,017,797.86 City of Los Angeles2692 MUN 1,000,000.00544351QX0 09/01/2032 2,6194.40009/28/2022 999,350.00 4.346 4.406999,638.96 City of Los Angeles2783 MUN 300,000.00544351MR7 09/01/2025 623.45012/23/2022 299,541.00 4.724 4.790299,377.25 City of Los Angeles Fin Author2947 MUN 925,000.0054473ENT7 08/01/2033 2,9537.48801/25/2024 1,013,235.75 5.721 5.8011,020,853.33 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
21 Packet Pg. 430 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 13
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
Los Angeles Community College2487 MUN 1,000,000.0054438CYN6 08/01/2030 1,8571.80601/28/2021 896,690.00 1.432 1.4521,016,756.86 Los Angeles Community College2592 MUN 250,000.0054438CYL0 08/01/2026 3961.17409/30/2021 241,967.50 1.064 1.078250,250.33 Los Angeles Community College2614 MUN 1,500,000.0054438CYL0 08/01/2026 3961.17411/15/2021 1,451,805.00 1.233 1.2501,498,799.65 Los Angeles Community College2642 MUN 275,000.0054438CYL0 08/01/2026 3961.17412/21/2021 266,164.25 1.282 1.300274,636.25 Los Angeles Community College2871 MUN 1,000,000.0054438CMS8 08/01/2029 1,4927.53004/10/2023 1,095,770.00 4.615 4.6801,099,702.38 Los Angeles Community College3011 MUN 770,000.0054438CYP1 08/01/2032 2,5882.10603/06/2024 664,186.60 4.438 4.500662,250.91 Los Angeles Dept. of WTR & PWR1949 MUN 1,500,000.00544495VX9 07/01/2027 7305.51603/29/2018 1,521,270.00 3.254 3.3001,556,865.31 Los Angeles Dept. of WTR & PWR1965 MUN 425,000.00544495VX9 07/01/2027 7305.51610/29/2018 431,026.50 3.600 3.650438,485.76 State of Massachusetts2227 MUN 250,000.0057582PUT5 05/01/2029 1,4004.91001/30/2020 252,330.00 2.331 2.363271,805.12 State of Massachusetts2543 MUN 1,000,000.0057582PUT5 05/01/2029 1,4004.91007/01/2021 1,009,320.00 1.484 1.5051,122,883.62 State of Massachusetts2684 MUN 1,000,000.0057582PUS7 05/01/2027 6694.76004/05/2022 1,003,300.00 2.968 3.0101,029,537.35 State of Massachusetts2985 MUN 1,000,000.0057582PUD0 01/01/2030 1,6455.30602/21/2024 1,029,000.00 4.645 4.7091,023,165.23 State of Massachusetts2994 MUN 1,000,000.0057582PUD0 01/01/2030 1,6455.30602/23/2024 1,029,000.00 4.675 4.7391,021,979.48 State of Massachusetts3012 MUN 1,250,000.0057582PUD0 01/01/2030 1,6455.30603/07/2024 1,286,250.00 4.537 4.6001,284,432.03 State of Maryland Dept. Housin3117 MUN 1,050,000.0057419UPL6 09/01/2034 3,3495.43804/03/2025 1,060,185.00 4.967 5.0361,080,446.59 State of Maryland2184 MUN 500,000.005741926N5 08/01/2025 314.35012/16/2019 500,060.00 2.089 2.118500,871.85 State of Maryland2581 MUN 245,000.005741926N5 08/01/2025 314.35009/23/2021 245,029.40 0.690 0.700245,733.89 Milpitas Unified School Distr2746 MUN 630,000.00601670ML3 08/01/2028 1,1271.45112/02/2022 584,463.60 4.802 4.869572,519.73 City of Manhattan Beach2647 MUN 650,000.00562784AM0 01/01/2032 2,3752.34101/05/2022 569,478.00 2.129 2.159656,217.66 City of Manhattan Beach2927 MUN 400,000.00562784AL2 01/01/2031 2,0102.24101/16/2024 357,576.00 4.635 4.700354,304.29 City of Manhattan Beach2930 MUN 400,000.00562784AK4 01/01/2030 1,6452.14101/17/2024 364,584.00 4.537 4.600361,661.01 City of Manhattan Beach2964 MUN 1,250,000.00562784AM05 01/01/2032 2,3752.34102/12/2024 1,095,150.00 4.537 4.6001,097,408.31 City of Manhattan Beach2972 MUN 400,000.00562784AM05 01/01/2032 2,3752.34102/13/2024 350,448.00 4.537 4.600351,166.90 Menlo Park City School Dist.2104 MUN 1,000,000.00586840ND8 07/01/2027 7302.21410/08/2019 968,530.00 2.183 2.2141,000,000.00 State of Minnesota HSG FIN AGY3116 MUN 1,230,000.0060416UQT5 01/01/2035 3,4715.34904/03/2025 1,235,141.40 4.830 4.8971,271,502.40 Mtn. View-Whisman School Dist.2708 MUN 1,135,000.0062451FJE1 09/01/2026 4271.89310/19/2022 1,107,657.85 4.487 4.5501,103,059.05 Marin Community College Dist.1858 MUN 500,000.0056781RGU5 08/01/2027 7613.27209/28/2017 494,180.00 2.791 2.830503,991.32 Marin Community College Dist.1973 MUN 120,000.0056781RGT8 08/01/2026 3963.17211/05/2018 118,954.80 3.452 3.500119,628.59 Marin Community College Dist.2084 MUN 250,000.0056781RJL2 08/01/2027 7613.33008/29/2019 247,377.50 1.874 1.900256,883.33 Marin Community College Dist.2287 MUN 310,000.0056781RJJ7 08/01/2025 315.00003/06/2020 310,155.00 1.193 1.210310,944.92 Marin Community College Dist.2495 MUN 1,000,000.0056781RKH9 08/01/2030 1,8571.45102/25/2021 880,850.00 1.431 1.4511,000,000.00 Marin Community College Dist.2499 MUN 710,000.0056781RKH9 08/01/2030 1,8571.45102/25/2021 625,403.50 1.470 1.490708,660.91 Marin Community College Dist.2568 MUN 1,000,000.0056781RKU0 08/01/2026 3960.89309/14/2021 967,380.00 0.880 0.8931,000,000.00 Marin Community College Dist.2588 MUN 285,000.0056781RKD8 08/01/2026 3960.67909/29/2021 275,064.90 1.025 1.040283,915.30 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
22 Packet Pg. 431 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 14
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
Mt. San Antonio Community Coll2208 MUN 230,000.00623040KQ4 08/01/2029 1,4922.56902/04/2020 216,022.90 2.533 2.569230,000.00 Mt. San Antonio Community Coll2661 MUN 785,000.00623040KX9 08/01/2030 1,8572.64902/07/2022 726,391.90 2.173 2.203801,143.55 State of Mississippi1968 MUN 1,500,000.00605581LM7 11/01/2026 4883.75111/07/2018 1,497,660.00 3.377 3.4241,505,659.29 State of Mississippi1972 MUN 500,000.00605581LM7 11/01/2026 4883.75111/07/2018 499,220.00 3.401 3.449501,740.29 State of Mississippi2096 MUN 150,000.006055805W5 11/01/2025 1234.68109/09/2019 149,887.50 1.888 1.914151,302.56 State of Mississippi2626 MUN 1,000,000.00605581QR1 10/01/2031 2,2832.11712/09/2021 890,700.00 1.992 2.0201,005,465.74 State of Mississippi2629 MUN 250,000.00605581LL9 11/01/2025 1233.64612/06/2021 249,257.50 1.080 1.095252,075.23 City of Monterey2928 MUN 560,000.0061255QAM8 06/01/2033 2,8922.19301/16/2024 471,111.20 4.734 4.800467,786.67 New York State Urban Dev Corp.2097 MUN 700,000.006500357D4 03/15/2026 2573.07009/09/2019 694,232.00 2.071 2.100704,454.85 New York State Urban Dev Corp.2683 MUN 1,000,000.00650036AV8 03/15/2027 6221.49603/28/2022 960,430.00 2.777 2.816979,119.88 New York State Envrnmntl Corp2224 MUN 580,000.00649791PS3 02/15/2027 5942.36001/30/2020 565,459.40 1.933 1.960583,498.10 New York State Envrnmntl Corp2575 MUN 1,500,000.00649791PR5 02/15/2026 2292.26009/13/2021 1,482,195.00 0.794 0.8051,513,313.37 New York State Envrnmntl Corp2677 MUN 1,000,000.00649791PS3 02/15/2027 5942.36003/16/2022 974,930.00 2.325 2.3581,000,026.41 New York State Envrnmntl Corp2678 MUN 1,000,000.00649791PS3 02/15/2027 5942.36003/21/2022 974,930.00 2.367 2.400999,384.22 City of Oakland2293 MUN 1,500,000.00672240WY0 01/15/2030 1,6592.11003/09/2020 1,361,685.00 1.436 1.4561,541,278.54 City of Oakland2307 MUN 1,500,000.00672240WY0 01/15/2030 1,6592.11003/13/2020 1,361,685.00 1.638 1.6611,528,087.55 City of Oakland2313 MUN 1,080,000.00672240WY0 01/15/2030 1,6592.11003/16/2020 980,413.20 2.247 2.2791,072,565.14 City of Oakland2316 MUN 1,500,000.00672240WX2 01/15/2029 1,2942.07003/16/2020 1,391,520.00 2.151 2.1811,494,589.81 City of Oakland2919 MUN 1,350,000.00672240ZA9 07/15/2033 2,9365.65012/26/2023 1,425,168.00 4.523 4.5861,442,611.37 City of Oakland Pension2630 MUN 230,000.00672319CF5 12/15/2025 1674.67612/06/2021 230,250.70 1.562 1.584233,125.94 Ohlone Community College Distr2165 MUN 600,000.00677765GY9 08/01/2027 7612.23711/22/2019 581,520.00 2.271 2.303599,242.69 Ohlone Community College Distr2175 MUN 280,000.00677765GY9 08/01/2027 7612.23712/06/2019 271,376.00 2.327 2.360279,345.99 Ohlone Community College Distr2179 MUN 970,000.00677765HA0 08/01/2029 1,4922.33712/11/2019 913,138.60 2.382 2.415967,246.82 Ohlone Community College Distr2341 MUN 1,185,000.00677765GZ6 08/01/2028 1,1272.28705/08/2020 1,132,137.15 1.849 1.8751,198,872.66 State of Ohio2308 MUN 500,000.00677521CT1 09/01/2026 4275.26203/13/2020 503,960.00 1.710 1.734519,383.51 City of Ontario (Pub Fin Auth)2847 MUN 600,000.00683050BW7 08/01/2026 3961.44003/17/2023 583,500.00 4.339 4.400582,295.80 Orange Cnty Water District2578 MUN 315,000.0068442CCY0 08/15/2025 452.09509/16/2021 314,146.35 0.690 0.700315,528.82 Orchard School District1910 MUN 125,000.00685585FD8 08/01/2027 7613.12501/25/2018 123,867.50 3.208 3.253124,721.61 State of Oregon1974 MUN 275,960.7668607LXQ5 06/01/2027 7005.89211/06/2018 282,509.31 3.516 3.565284,962.80 State of Oregon2015 MUN 245,619.7568607LXQ5 06/01/2027 7005.89201/16/2019 251,448.31 3.537 3.587254,918.25 State of Oregon2230 MUN 273,173.9068607LXQ5 06/01/2027 7005.89201/31/2020 279,656.32 2.583 2.619288,667.21 State of Oregon2266 MUN 551,921.5268607LXQ5 06/01/2027 7005.89202/24/2020 565,018.62 2.482 2.517584,353.56 State of Oregon2310 MUN 350,000.0068609BXT9 05/01/2027 6693.08003/13/2020 345,747.50 1.302 1.320360,728.65 State of Oregon2378 MUN 355,000.0068609TVS4 06/01/2030 1,7961.67207/02/2020 318,864.55 1.433 1.452358,549.32 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
23 Packet Pg. 432 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 15
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
State of Oregon2542 MUN 870,000.0068608KA24 08/01/2030 1,8575.33207/01/2021 889,279.20 1.943 1.9701,005,480.89 State of Oregon2549 MUN 1,225,000.0068609TU30 08/01/2028 1,1271.48407/08/2021 1,139,972.75 1.134 1.1501,237,078.94 State of Oregon2584 MUN 265,000.0068609TT81 08/01/2025 310.80309/24/2021 264,226.20 0.690 0.700265,022.35 State of Oregon2624 MUN 250,000.0068609TZT8 08/01/2026 3960.98411/19/2021 242,110.00 1.292 1.310249,146.01 State of Oregon2627 MUN 900,000.0068609T3M8 11/01/2031 2,3142.03711/26/2021 791,946.00 2.020 2.048899,380.10 State of Oregon2679 MUN 551,921.4768607LXQ5 06/01/2027 7005.89204/01/2022 565,018.57 3.259 3.304576,886.03 State of Oregon2977 MUN 551,816.7168607LXQ5 06/01/2027 7005.89202/15/2024 564,911.32 5.079 5.150558,921.32 Oxnard Union High School Distr2859 MUN 500,000.00692039QX1 08/01/2027 7611.51203/23/2023 474,715.00 4.458 4.520471,839.13 City of Pacifica2139 MUN 580,000.0069511AAT1 06/01/2026 3352.66310/23/2019 571,682.80 2.611 2.647580,072.44 Pasadena CA Public Finance Aut2573 MUN 120,000.0070227RBM1 05/01/2026 3041.98409/09/2021 117,819.60 0.903 0.915121,044.04 Pasadena CA Public Finance Aut2615 MUN 550,000.00702274CS8 12/01/2026 5183.50012/01/2021 545,072.00 1.380 1.400565,748.52 Palo Alto Unified School Dist.2838 MUN 1,500,000.00697379TV7 07/01/2027 7305.86202/17/2023 1,527,825.00 4.698 4.7641,529,374.08 Palo Alto Unified School Dist.2839 MUN 1,500,000.00697379TV7 07/01/2027 7305.86202/21/2023 1,527,825.00 4.683 4.7481,529,806.62 Palo Alto Unified School Dist.2841 MUN 1,480,000.00697379TV7 07/01/2027 7305.86203/06/2023 1,507,454.00 4.941 5.0101,502,367.32 Placentia-Yorba Linda Unif Sch3023 MUN 1,000,000.00725894NB1 08/01/2031 2,2222.06403/13/2024 887,700.00 4.359 4.420878,824.94 Polomar Community Clge Distri2582 MUN 1,000,000.00697511FU2 08/01/2026 3961.03110/13/2021 968,010.00 1.016 1.0311,000,000.00 Polomar Community Clge Distri2676 MUN 335,000.00697511FD0 08/01/2026 3961.19903/15/2022 324,872.95 2.288 2.320331,151.79 Rancho Water Dist. Fin. Auth.2889 MUN 600,000.00752111HE7 08/01/2030 1,8575.12505/03/2023 620,616.00 4.284 4.344620,208.59 Redondo Beach Unified School D2388 MUN 750,000.00757710UE6 08/01/2030 1,8571.66008/06/2020 662,992.50 1.439 1.459757,116.38 Redondo Beach Unified School D2763 MUN 715,000.00757710UE6 08/01/2030 1,8571.66012/14/2022 632,052.85 4.783 4.850619,040.65 State of Rhode Island2219 MUN 1,500,000.0076222RXB3 04/01/2028 1,0053.25001/27/2020 1,473,045.00 2.077 2.1061,543,107.37 State of Rhode Island2239 MUN 550,000.0076222RXB3 04/01/2028 1,0053.25002/06/2020 540,116.50 1.990 2.018567,091.92 County of Riverside Pen Oblg3074 MUN 255,000.0076913CBD0 02/15/2029 1,3253.12010/24/2024 246,159.15 4.389 4.450243,922.43 Riverside Cmnty College Distt.2596 MUN 1,365,000.0076886PJP9 08/01/2026 3961.12410/04/2021 1,323,640.50 1.006 1.0201,366,495.61 Riverside Cmnty College Distt.2733 MUN 560,000.0076886PJS3 08/01/2029 1,4921.78511/17/2022 514,012.80 5.022 5.092496,602.69 Riverside Cmnty College Distt.2936 MUN 120,000.0076886PJS3 08/01/2029 1,4921.78501/19/2024 110,145.60 4.562 4.625107,842.39 City of Roseville Electric Sys2942 MUN 470,000.0077781RCW1 02/01/2031 2,0411.83101/24/2024 414,342.60 4.487 4.550409,501.07 Rancho Santiago Comm College D2805 MUN 635,000.00752147HK7 09/01/2026 4270.95601/19/2023 612,851.20 4.164 4.222612,775.00 Redwood City School District2130 MUN 1,000,000.00757889EH9 08/01/2027 7612.28410/16/2019 966,630.00 2.252 2.2841,000,000.00 Redwood City School District2253 MUN 1,095,000.00757889EG1 08/01/2026 3962.15902/13/2020 1,072,585.35 1.727 1.7511,099,554.83 City of Santa Ana2603 MUN 175,000.00801139AE6 08/01/2026 3961.17610/18/2021 169,004.50 1.223 1.240174,882.35 City of Santa Ana2747 MUN 1,250,000.00801139AF3 08/01/2027 7611.46512/02/2022 1,179,900.00 5.178 5.2501,163,542.29 City of Santa Ana2932 MUN 500,000.00801139AK2 08/01/2031 2,2222.18901/18/2024 435,850.00 4.606 4.670436,992.09 Santa Barbara Unified School D2385 MUN 490,000.00801315KU5 08/01/2029 1,4921.65307/21/2020 446,483.10 1.483 1.504492,768.17 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
24 Packet Pg. 433 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 16
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
San Bernardino Cmty College Di2166 MUN 1,500,000.00796720NC0 08/01/2028 1,1272.59012/12/2019 1,442,805.00 2.554 2.5901,500,000.00 San Bernardino Cmty College Di2365 MUN 2,000,000.00796720NV8 08/01/2029 1,4921.84807/07/2020 1,840,480.00 1.822 1.8482,000,000.00 San Bernardino Cmty College Di2920 MUN 1,000,000.00796720ND8 08/01/2029 1,4922.64001/04/2024 949,810.00 4.261 4.320939,573.99 County of Santa Clara3076 MUN 500,000.00801546SS2 08/01/2033 2,9534.80010/24/2024 511,355.00 4.533 4.596506,691.99 Santa Clarita Community Colleg2557 MUN 1,250,000.00801686TF3 08/01/2026 3961.14608/02/2021 1,212,412.50 0.742 0.7521,255,251.67 Santa Clara Valley Water Dist.2181 MUN 1,555,000.0080168ACV7 06/01/2028 1,0662.43412/12/2019 1,482,987.95 2.416 2.4501,554,341.33 Santa Clara Valley Water Dist.2793 MUN 1,000,000.0080168FPC4 06/01/2030 1,7961.63401/12/2023 882,510.00 4.418 4.480881,964.50 Santa Cruz County Capital Fin.1908 MUN 470,000.0080181PCV7 06/01/2026 3353.00001/25/2018 464,251.90 3.107 3.150469,433.98 Santa Cruz County Capital Fin.1909 MUN 280,000.0080181PCW5 06/01/2027 7003.00001/25/2018 273,733.60 3.205 3.250278,849.18 Santa Cruz MET Transit Dist.2671 MUN 1,000,000.00801747AF3 08/01/2027 7612.47003/03/2022 970,310.00 2.030 2.0581,008,069.82 San Diego Unified Sch District2602 MUN 1,000,000.00797356DL3 07/01/2031 2,1911.98410/21/2021 881,060.00 1.824 1.8501,007,321.72 San Diego Unified Sch District2606 MUN 900,000.00797356DL3 07/01/2031 2,1911.98410/23/2021 792,954.00 2.024 2.053896,655.96 San Diego Unified Sch District2617 MUN 270,000.00797356DH2 07/01/2028 1,0961.59911/17/2021 251,388.90 1.712 1.736268,954.20 San Diego Unified Sch District2693 MUN 260,000.00797356DF6 07/01/2026 3651.20109/23/2022 252,707.00 4.053 4.110253,057.89 San Diego Unified Sch District2767 MUN 1,000,000.00797356DH2 07/01/2028 1,0961.59912/16/2022 931,070.00 4.241 4.300928,573.83 San Diego Community College Di2550 MUN 255,000.00797272QS3 08/01/2027 7612.40707/09/2021 247,508.10 1.007 1.021262,121.48 San Diego Community College Di2639 MUN 1,980,000.00797272RN3 08/01/2026 3961.44512/28/2021 1,926,262.80 1.193 1.2101,984,886.40 San Diego Community College Di2651 MUN 500,000.00797272RT0 08/01/2031 2,2222.11301/10/2022 444,155.00 2.120 2.150498,984.87 San Diego Regl Trans Commissio2632 MUN 200,000.00797400MR6 04/01/2026 2741.03612/08/2021 195,628.00 1.292 1.310199,601.26 San Diego Cnty Wtr Authority2580 MUN 875,000.00797412DN0 05/01/2026 3040.97109/17/2021 853,107.50 0.887 0.900875,504.81 San Diego Cnty Wtr Authority2604 MUN 250,000.00797412DN0 05/01/2026 3040.97110/20/2021 243,745.00 1.134 1.150249,637.19 San Diego Cnty Wtr Authority2623 MUN 750,000.00797412DN0 05/01/2026 3040.97111/19/2021 731,235.00 1.282 1.300748,007.02 San Diego Cnty Wtr Authority2688 MUN 1,275,000.00797412DQ3 05/01/2028 1,0351.33109/12/2022 1,186,897.50 3.945 4.0001,189,425.95 San Diego Cnty Wtr Authority2716 MUN 225,000.00797412DR1 05/01/2029 1,4001.43110/24/2022 204,689.25 5.079 5.150198,043.26 San Diego Cnty Wtr Authority2993 MUN 445,000.00797412DN0 05/01/2026 3040.97103/23/2024 433,866.10 4.590 4.653431,658.81 San Dieguito Union High Sch Di2536 MUN 430,000.00797508JW9 08/01/2026 3961.07406/09/2021 416,833.40 1.059 1.074430,000.00 San Dieguito Union High Sch Di2537 MUN 435,000.00797508JX7 08/01/2027 7611.37206/09/2021 413,632.80 1.353 1.372435,000.00 San Dieguito Union High Sch Di2674 MUN 435,000.00797508HF8 08/01/2026 3961.86003/11/2022 425,269.05 2.070 2.099433,928.41 Sequoia Union High School Dist2320 MUN 400,000.00817409N35 07/01/2025 01.73503/18/2020 400,000.00 1.381 1.400400,000.00 Sequoia Union High School Dist2531 MUN 250,000.00817409N76 07/01/2029 1,4612.10304/30/2021 231,362.50 1.658 1.681253,917.04 Sequoia Union High School Dist3102 MUN 1,125,000.00817409P33 07/01/2033 2,9222.46303/21/2025 964,136.25 4.428 4.490973,992.08 City & County of San Francisco1712 MUN 245,000.00797646T55 06/15/2026 3492.39011/01/2016 240,928.10 2.376 2.410244,957.91 City & County of San Francisco2014 MUN 1,420,000.00797646ND4 06/15/2026 3495.60001/16/2019 1,433,447.40 3.304 3.3501,446,828.88 City & County of San Francisco2148 MUN 1,120,000.007976466C5 06/15/2029 1,4452.10010/31/2019 1,038,878.40 2.337 2.3691,109,350.58 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
25 Packet Pg. 434 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 17
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
City & County of San Francisco2762 MUN 575,000.007976466F8 06/15/2032 2,5412.35012/14/2022 503,326.25 4.744 4.810496,768.48 City & County of San Francisco2883 MUN 500,000.0079773KKT0 06/15/2028 1,0806.00004/21/2023 527,075.00 4.273 4.332521,888.33 City & County of San Francisco2910 MUN 635,000.0079773KDG6 06/15/2029 1,4451.78410/20/2023 581,748.90 5.375 5.450556,644.38 City & County of San Francisco2913 MUN 305,000.0079773KKX1 06/15/2032 2,5416.00012/15/2023 332,947.15 4.803 4.870324,437.42 City & County of San Francisco2934 MUN 760,000.007976466E1 06/15/2031 2,1752.30001/18/2024 680,321.60 4.553 4.616672,021.24 City & County of San Francisco2958 MUN 470,000.007976466G6 06/15/2033 2,9062.40001/31/2024 402,423.40 4.546 4.610403,497.90 City & Cnty of San Francisco2911 MUN 1,000,000.0079765D5Y2 10/01/2032 2,6496.00011/07/2023 1,055,430.00 5.889 5.9711,001,401.12 San Francisco Cmnty Facs Dist1937 MUN 680,000.0079772EBC2 09/01/2027 7923.25003/02/2018 668,501.20 3.451 3.499676,895.91 San Francisco Cmnty Facs Dist2132 MUN 350,000.0079772ECL1 09/01/2029 1,5233.64810/11/2019 342,769.00 2.398 2.431365,681.67 San Francisco Cmnty Facs Dist2309 MUN 130,000.0079772ECJ6 09/01/2027 7923.46803/13/2020 128,382.80 1.577 1.599134,943.06 San Francisco Cmnty Facs Dist2608 MUN 575,000.0079772EDY2 09/01/2031 2,2532.59111/03/2021 519,173.25 2.305 2.337583,002.42 San Francisco Cmnty Facs Dist2628 MUN 1,295,000.0079772EDA4 09/01/2026 4272.23611/29/2021 1,266,354.60 1.425 1.4451,306,514.53 San Francisco Cmnty Facs Dist2946 MUN 600,000.0079772EEK1 09/01/2030 1,8885.53501/24/2024 634,296.00 4.783 4.850617,964.18 San Francisco Cmnty Facs Dist2973 MUN 700,000.0079772EDF3 09/01/2031 2,2532.70102/13/2024 636,160.00 4.583 4.647629,794.17 San Francisco Cmnty Facs Dist3053 MUN 1,150,000.0079772ECR8 09/01/2034 3,3494.03810/10/2024 1,086,083.00 4.598 4.6621,097,673.55 San Francisco Cmnty Facs Dist3066 MUN 500,000.0079772EBF5 09/01/2030 1,8883.50010/18/2024 481,880.00 4.333 4.394479,819.92 SF Bay Area Rapid Transit Dist2636 MUN 480,000.00797669ZR2 07/01/2031 2,1912.76812/16/2021 441,936.00 1.846 1.872503,523.94 SF Bay Area Rapid Transit Dist2766 MUN 405,000.00797669ZR2 07/01/2031 2,1912.76812/15/2022 372,883.50 4.832 4.899363,075.32 Sierra Joint Com. College Dist2501 MUN 585,000.00826239GD1 08/01/2029 1,4921.44503/09/2021 529,536.15 1.425 1.445585,000.00 Sierra Joint Com. College Dist2535 MUN 500,000.00826239GD1 08/01/2029 1,4921.44505/27/2021 452,595.00 1.461 1.481499,300.95 Silicon Valley Clean Water2828 MUN 245,000.0082707BDP1 08/01/2027 7611.38002/10/2023 232,816.15 4.301 4.361231,312.85 San Juan Unified School Dist2707 MUN 545,000.00798306WQ5 08/01/2026 3961.20110/17/2022 527,750.75 4.586 4.650526,521.86 City of San Jose2656 MUN 350,000.00798135E96 09/01/2026 4272.50001/28/2022 343,885.50 1.686 1.710353,088.51 San Jose Financing Authority2622 MUN 345,000.00798153NF5 06/01/2026 3351.31111/18/2021 336,026.55 1.459 1.480344,484.78 San Jose Evergreen Cmnty Colll1966 MUN 315,000.00798189PK6 09/01/2027 7923.72810/29/2018 314,250.30 3.676 3.727315,000.00 San Jose Evergreen Cmnty Colll2105 MUN 500,000.00798189QA7 08/01/2028 1,1272.35010/01/2019 477,900.00 2.317 2.350500,000.00 San Jose Evergreen Cmnty Colll3095 MUN 315,000.00798189QG4 08/01/2034 3,3182.84003/13/2025 275,196.60 4.546 4.610274,249.29 San Jose Unified School Dist.2518 MUN 1,000,000.00798186N81 08/01/2025 310.55803/15/2021 996,950.00 0.739 0.750999,842.77 San Jose Unified School Dist.2700 MUN 990,000.00798186P30 08/01/2028 1,1271.22410/07/2022 914,156.10 4.487 4.550901,662.92 San Jose Unified School Dist.2774 MUN 850,000.00798186P22 08/01/2027 7611.01412/21/2022 802,374.50 4.341 4.401796,234.94 San Jose Unified School Dist.2949 MUN 200,000.00798186P22 08/01/2027 7611.01401/26/2024 188,794.00 4.421 4.483186,762.06 Santa Maria JT Union High Sch2706 MUN 455,000.00802309NY6 08/01/2026 3961.50810/17/2022 442,578.50 4.586 4.650440,945.80 Santa Monica Cmnty College Dis2091 MUN 315,000.00802385RC0 08/01/2028 1,1273.47209/05/2019 310,621.50 1.972 2.000328,034.99 Santa Monica Cmnty College Dis2481 MUN 570,000.00802385RV8 08/01/2030 1,8571.69601/22/2021 507,220.20 1.499 1.520574,732.47 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
26 Packet Pg. 435 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 18
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
Santa Monica Cmnty College Dis2482 MUN 600,000.00802385RT3 08/01/2028 1,1271.49601/22/2021 557,574.00 1.085 1.100607,017.91 Santa Monica Cmnty College Dis2810 MUN 850,000.00802385RS5 08/01/2027 7611.24401/23/2023 805,111.50 3.965 4.020805,453.32 Santa Monica Cmnty College Dis3098 MUN 1,500,000.00802385RJ5 08/01/2034 3,3183.94203/20/2025 1,424,790.00 4.658 4.7231,414,719.06 Santa Monica Cmnty College Dis3103 MUN 1,500,000.00802385RJ5 08/01/2034 3,3183.94203/27/2025 1,424,790.00 4.724 4.7901,407,644.86 Santa Monica-Malibu USD2561 MUN 650,000.00802498VW2 07/01/2026 3650.98908/12/2021 629,570.50 0.877 0.890650,627.90 Santa Monica-Malibu USD2637 MUN 215,000.00802498ZA6 08/01/2026 3960.84912/20/2021 207,404.05 1.193 1.210214,184.22 Santa Monica-Malibu USD2792 MUN 825,000.00802498ZF5 08/01/2031 2,2221.62401/09/2023 703,791.00 4.694 4.760696,956.41 Santa Monica-Malibu USD3114 MUN 750,000.00802498ZH1 08/01/2033 2,9531.91403/27/2025 612,067.50 4.556 4.620615,119.47 San Mateo Foster City SCH Dist1902 MUN 1,000,000.00799017UW6 09/01/2025 622.69901/16/2018 997,300.00 2.786 2.825999,811.80 San Mateo Foster City SCH Dist1940 MUN 1,000,000.00799017UW6 09/01/2025 622.69903/09/2018 997,300.00 2.959 3.000999,553.34 San Mateo Foster City SCH Dist2153 MUN 1,360,000.00799017WD6 09/01/2028 1,1582.23711/07/2019 1,294,380.00 2.447 2.4801,350,612.33 San Mateo Foster City SCH Dist2178 MUN 1,565,000.00799017VM7 09/01/2028 1,1582.54212/11/2019 1,503,589.40 2.311 2.3431,573,823.91 San Mateo Foster City SCH Dist2567 MUN 500,000.00799017XW3 09/01/2026 4270.92509/21/2021 482,935.00 0.912 0.925500,000.00 San Mateo Foster City SCH Dist2585 MUN 175,000.00799055QV3 08/01/2026 3961.79909/27/2021 170,973.25 0.897 0.910176,644.81 San Mateo Foster City SCH Dist2591 MUN 810,000.00799055ME5 08/01/2026 3966.00009/29/2021 819,485.10 2.297 2.329840,284.33 San Mateo Foster City SCH Dist2782 MUN 425,000.00799017WE4 09/01/2029 1,5232.33712/22/2022 399,007.00 4.685 4.750388,747.98 Solano Cnty Community Clg Dist2176 MUN 1,150,000.0083412PFQ0 08/01/2028 1,1272.71712/09/2019 1,111,969.50 2.462 2.4961,156,985.47 Solano Cnty Community Clg Dist2579 MUN 750,000.0083412PHQ8 08/01/2026 3961.02510/06/2021 726,885.00 1.011 1.025750,000.00 Solano Cnty Community Clg Dist2583 MUN 200,000.0083412PGZ9 08/01/2026 3961.02510/06/2021 193,836.00 0.887 0.900200,263.90 Solano Cnty Community Clg Dist2594 MUN 390,000.0083412PHE5 08/01/2031 2,2221.86110/06/2021 342,568.20 1.948 1.975387,535.55 Solano Cnty Community Clg Dist2597 MUN 750,000.0083412PHU9 08/01/2030 1,8571.76110/06/2021 672,495.00 1.834 1.860746,528.76 Solano Cnty Community Clg Dist2598 MUN 825,000.0083412PHW5 08/01/2031 2,2221.86110/06/2021 724,663.50 1.879 1.905822,980.12 Solano Cnty Community Clg Dist2649 MUN 350,000.0083412PHB1 08/01/2028 1,1271.47901/07/2022 325,948.00 1.775 1.800346,744.42 Sonoma Cnty Jr. College Distr.2577 MUN 155,000.00835569GT5 08/01/2026 3962.44709/15/2021 152,295.25 0.843 0.855157,612.50 South Pasadena Unified School1914 MUN 180,000.00839278JM1 08/01/2027 7613.00002/15/2018 176,545.80 3.057 3.100179,676.39 South Pasadena Unified School2161 MUN 370,000.00839278KC1 08/01/2029 1,4925.00012/12/2019 382,620.70 2.598 2.634401,382.83 South Pasadena Unified School2162 MUN 250,000.00839278KB3 08/01/2028 1,1275.00012/12/2019 257,072.50 2.549 2.584266,592.88 South Pasadena Unified School2163 MUN 145,000.00839278KA5 08/01/2027 7615.00012/12/2019 147,959.45 2.500 2.534151,733.08 South Pasadena Unified School2164 MUN 390,000.00839278JZ2 08/01/2026 3965.00012/12/2019 393,630.90 2.378 2.411400,050.44 City of San Ramon2933 MUN 355,000.00799381AL2 07/01/2032 2,5572.46001/18/2024 311,349.20 4.753 4.819307,303.68 San Ramon Vly Unif Sch Dist.2605 MUN 1,500,000.007994082K4 08/01/2030 1,8571.91411/03/2021 1,344,525.00 1.805 1.8301,505,877.16 San Ramon Vly Unif Sch Dist.2813 MUN 935,000.00799408Z93 08/01/2026 3961.03401/26/2023 904,640.55 4.044 4.100906,346.87 Sunnyvale Elementary Sch Distr2100 MUN 135,000.00867578UT1 09/01/2028 1,1582.19009/19/2019 128,493.00 2.157 2.187135,000.00 Sunnyvale Elementary Sch Distr2101 MUN 135,000.00867578US3 09/01/2027 7922.09009/19/2019 130,316.85 2.061 2.090135,000.00 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
27 Packet Pg. 436 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 19
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Municipal Bonds
Tracy Unified School District2493 MUN 500,000.00892404CN2 08/01/2029 1,4921.64402/08/2021 457,440.00 1.437 1.457503,572.68 Temecula Valley Unified School2539 MUN 250,000.0087970GPS0 08/01/2028 1,1271.50306/16/2021 232,302.50 1.482 1.503250,000.00 Temecula Valley Unified School2569 MUN 355,000.0087970GPQ4 08/01/2026 3961.05108/27/2021 343,789.10 0.887 0.900355,566.60 State of Tennessee1673 MUN 1,000,000.00880541XY8 08/01/2026 3962.11608/25/2016 980,560.00 1.923 1.9501,001,626.09 State of Tennessee1674 MUN 1,650,000.00880541XX0 08/01/2025 312.06608/25/2016 1,647,030.00 1.893 1.9201,650,186.86 State of Tennessee1676 MUN 700,000.00880541XX0 08/01/2025 312.06608/25/2016 698,740.00 1.893 1.920700,079.27 City of Torrance JT PWRS Fin A2795 MUN 445,000.00891371BB1 06/01/2032 2,5272.63701/12/2023 389,695.40 5.001 5.070385,973.96 Tustin Unif Sch Dist Facs Impt2715 MUN 650,000.00901072LD8 08/01/2027 7611.14510/24/2022 614,269.50 4.783 4.850605,676.40 Tustin Unif Sch Dist Facs Impt2758 MUN 205,000.00901072MB1 08/01/2031 2,2221.75412/09/2022 177,890.80 4.843 4.910173,231.59 Tustin Unif Sch Dist Facs Impt2814 MUN 500,000.00901072LX4 08/01/2027 7611.14501/26/2023 472,515.00 4.098 4.155471,675.38 State of Texas2195 MUN 1,500,000.008827237P8 10/01/2025 923.05112/23/2019 1,494,945.00 1.975 2.0031,503,691.39 State of Texas2225 MUN 940,000.008827237T0 10/01/2029 1,5533.52101/30/2020 927,535.60 2.191 2.221986,480.18 State of Texas2255 MUN 1,265,000.008827237T0 10/01/2029 1,5533.52102/14/2020 1,248,226.10 2.192 2.2221,327,523.91 State of Texas2541 MUN 245,000.008827235K1 10/01/2025 922.92206/30/2021 244,095.95 0.641 0.650246,370.24 State of Texas2548 MUN 1,000,000.00882724RF6 10/01/2030 1,9182.42607/02/2021 924,720.00 1.480 1.5011,045,174.92 State of Texas2631 MUN 500,000.00882723A90 10/01/2025 922.83112/07/2021 498,045.00 1.030 1.045502,182.53 State of Texas2957 MUN 295,000.00882724U47 10/01/2033 3,0144.70001/30/2024 300,802.65 4.536 4.599296,930.50 University of California2685 MUN 440,000.0091412HGF4 05/15/2027 6831.31604/05/2022 419,782.00 3.028 3.070426,719.27 University of California2866 MUN 230,000.0091412HJN4 05/15/2027 6831.27204/05/2023 218,812.80 4.311 4.371217,902.16 University of California2996 MUN 745,000.0091412HGG2 05/15/2030 1,7791.61402/26/2024 665,262.65 4.566 4.630650,797.55 State of Utah2306 MUN 295,225.00917542QV7 07/01/2025 03.53903/13/2020 295,225.00 1.948 1.975295,225.00 State of Wisconsin2547 MUN 2,000,000.0097705MNU5 05/01/2031 2,1302.45107/02/2021 1,826,260.00 1.553 1.5752,094,324.95 State of Wisconsin2574 MUN 1,500,000.0097705MNP6 05/01/2026 3042.08909/09/2021 1,474,860.00 0.739 0.7501,516,417.46 State of Wisconsin2576 MUN 1,000,000.0097705MNP6 05/01/2026 3042.08909/13/2021 983,240.00 0.769 0.7801,010,690.65 State of Wisconsin 22822 MUN 305,000.00977100AC0 05/01/2026 3045.70001/30/2023 308,644.75 5.039 5.109306,361.17 Yosemite Community College Dis2657 MUN 1,000,000.00987388GX7 08/01/2027 7612.08202/17/2022 965,730.00 2.053 2.0821,000,000.00 Yosemite Community College Dis2687 MUN 500,000.00987388GX7 08/01/2027 7612.08209/02/2022 482,865.00 3.846 3.900482,914.08 Subtotal and Average 232,416,565.66 236,145,639.11 226,208,796.70 2.945 2.986 1,254 Supranationals (World Bank) Bonds
Inter-American Dev. Bank2528 IADB 2,000,000.004581X0DV7 04/20/2026 2930.87504/20/2021 1,949,340.00 0.910 0.9231,999,245.39 Inter-American Dev. Bank2586 IADB 2,000,000.0045818WDH6 06/17/2026 3510.80009/27/2021 1,938,920.00 0.914 0.9271,997,612.71 Inter-American Dev. Bank2652 IADB 1,000,000.004581X0EB0 01/13/2027 5611.50001/13/2022 964,800.00 1.504 1.525999,625.87 Inter-American Dev. Bank2655 IADB 1,000,000.004581X0EB0 01/13/2027 5611.50001/14/2022 964,800.00 1.518 1.540999,410.87 Inter-American Dev. Bank2922 IADB 1,000,000.004581X0EK0 05/15/2026 3184.50001/08/2024 1,003,570.00 4.214 4.2731,001,842.48 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
28 Packet Pg. 437 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 20
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Supranationals (World Bank) Bonds
Inter-American Dev. Bank2987 IADB 1,000,000.004581X0EN4 02/15/2029 1,3254.12502/22/2024 1,010,960.00 4.222 4.281994,909.09 Inter-American Dev. Bank3026 IADB 1,500,000.0045818WFV3 08/15/2029 1,5063.90009/19/2024 1,509,555.00 3.462 3.5111,521,881.86 Inter-American Dev. Bank3073 IADB 1,000,000.0045818WFZ4 10/09/2029 1,5613.60010/23/2024 994,640.00 3.993 4.049982,766.82 Inter-American Dev. Bank3079 IADB 1,000,000.0045818WFZ4 10/09/2029 1,5613.60010/24/2024 994,640.00 4.035 4.091981,137.31 Intl Bk Recon & Development2470 IBRD 1,500,000.00459058JL8 10/28/2025 1190.50001/08/2021 1,481,100.00 0.480 0.4871,500,060.66 Intl Bk Recon & Development2492 IBRD 1,500,000.00459058JS3 02/10/2026 2240.65002/10/2021 1,467,135.00 0.641 0.6501,500,000.00 Intl Bk Recon & Development2497 IBRD 1,500,000.0045905U5Y6 02/18/2026 2320.60002/18/2021 1,462,605.00 0.591 0.6001,500,000.00 Intl Bk Recon & Development2498 IBRD 1,500,000.00459058JL8 10/28/2025 1190.50002/18/2021 1,481,100.00 0.591 0.6001,499,519.92 Intl Bk Recon & Development2510 IBRD 1,500,000.00459058JL8 10/28/2025 1190.50003/01/2021 1,481,100.00 0.787 0.7981,498,575.70 Intl Bk Recon & Development2534 IBRD 1,500,000.00459058JS3 02/10/2026 2240.65005/26/2021 1,467,135.00 0.833 0.8451,498,258.79 Intl Bk Recon & Development2553 IBRD 1,500,000.00459058JS3 02/10/2026 2240.65007/15/2021 1,467,135.00 0.839 0.8511,498,202.74 Intl Bk Recon & Development2559 IBRD 1,500,000.00459058JS3 02/10/2026 2240.65008/12/2021 1,467,135.00 0.871 0.8831,497,918.35 Intl Bk Recon & Development2650 IBRD 1,000,000.0045906M2L4 02/24/2026 2380.65001/07/2022 976,620.00 1.368 1.387995,377.61 Intl Bk Recon & Development2736 IBRD 1,000,000.0045906M2L4 02/24/2026 2380.65011/23/2022 976,620.00 4.480 4.542976,819.39 Intl Bk Recon & Development2775 IBRD 1,000,000.00459058JN4 11/24/2027 8760.75012/21/2022 931,640.00 3.807 3.860932,689.89 Intl Bk Recon & Development2779 IBRD 1,500,000.00459058JT1 02/10/2027 5890.85012/22/2022 1,426,590.00 4.241 4.3001,424,479.61 Intl Bk Recon & Development2826 IBRD 1,500,000.00459058JT1 02/10/2027 5890.85002/10/2023 1,426,590.00 4.310 4.3701,422,854.28 Intl Bk Recon & Development2912 IBRD 1,000,000.00459058KW2 08/01/2028 1,1274.62510/27/2023 1,024,750.00 4.967 5.036988,861.14 Intl Bk Recon & Development2921 IBRD 1,000,000.00459058KT9 07/12/2028 1,1073.50001/08/2024 992,560.00 4.024 4.079984,091.82 Intl Bk Recon & Development2950 IBRD 1,000,000.00459058KW2 08/01/2028 1,1274.62501/26/2024 1,024,750.00 4.112 4.1691,012,667.66 Intl Bk Recon & Development3034 IBRD 1,000,000.00459058KW2 08/01/2028 1,1274.62509/24/2024 1,024,750.00 3.475 3.5241,031,451.33 Intl Bk Recon & Development3055 IBRD 1,000,000.00459058LN1 10/16/2029 1,5683.87510/16/2024 1,002,350.00 3.906 3.961996,680.83 Intl Bk Recon & Development3064 IBRD 1,500,000.00459058LN1 10/16/2029 1,5683.87510/18/2024 1,503,525.00 3.876 3.9301,496,810.79 Intl Bk Recon & Development3065 IBRD 1,500,000.0045906M5K3 07/30/2029 1,4904.75010/18/2024 1,505,370.00 4.446 4.5081,512,796.17 Intl Bk Recon & Development3070 IBRD 1,750,000.0045906M4E8 06/26/2028 1,0914.50010/22/2024 1,751,260.00 4.246 4.3051,759,235.74 Intl Bk Recon & Development3089 IBRD 1,500,000.00459058KT9 07/12/2028 1,1073.50003/13/2025 1,488,840.00 4.001 4.0561,476,496.64 Intl Bk Recon & Development3096 IBRD 1,421,000.00459058KQ5 02/14/2030 1,6893.87503/13/2025 1,423,245.18 4.082 4.1381,405,429.95 Intl Bk Recon & Development3101 IBRD 1,500,000.00459058LR2 03/20/2030 1,7234.12503/20/2025 1,518,375.00 4.073 4.1301,499,683.14 Intl Bk Recon & Development3110 IBRD 1,500,000.00459058LN1 10/16/2029 1,5683.87503/27/2025 1,503,525.00 4.101 4.1581,483,479.45 Intl Bk Recon & Development3120 IBRD 2,000,000.0045906M5K3 07/30/2029 1,4904.75004/03/2025 2,007,160.00 4.513 4.5762,012,170.91 Intl Bk Recon & Development3121 IBRD 1,500,000.00459058KQ5 02/14/2030 1,6893.87504/03/2025 1,502,370.00 3.968 4.0231,490,768.50 Intl Bk Recon & Development3125 IBRD 1,713,000.0045906M4E8 06/26/2028 1,0914.50004/24/2025 1,714,233.36 4.268 4.3271,721,062.50 Intl Bk Recon & Development3126 IBRD 1,500,000.00459058LR2 03/20/2030 1,7234.12504/24/2025 1,518,375.00 3.984 4.0391,505,382.73 Intl Bk Recon & Development3130 IBRD 2,000,000.0045906M5H0 04/24/2029 1,3935.17005/01/2025 2,013,100.002,034,489.68 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
29 Packet Pg. 438 of 461

June 30, 2025
Par Value
Days To
Maturity
Maturity
Date
Current
RateMarket Value
Fund ALL - Portfolio Listings
Investments by Fund Page 21
CUSIP Investment # Issuer
Purchase
Date Book Value
YTM
360
YTM
365
Supranationals (World Bank) Bonds
International Finance Corp.2441 IFC 1,000,000.0045950VPE0 10/15/2025 1061.50010/30/2020 990,980.00 0.500 0.5071,000,000.00 International Finance Corp.2454 IFC 1,500,000.0045950VPH3 11/15/2025 1373.00011/30/2020 1,491,150.00 0.689 0.6981,500,000.00 International Finance Corp.2483 IFC 1,500,000.0045950VPJ9 01/15/2026 1980.58001/25/2021 1,469,430.00 0.501 0.5081,500,568.99 International Finance Corp.2502 IFC 1,500,000.0045950VPJ9 01/15/2026 1980.58002/11/2021 1,469,430.00 0.522 0.5301,500,396.97 International Finance Corp.2503 IFC 1,500,000.0045950VPS9 02/26/2026 2400.50002/26/2021 1,462,410.00 0.616 0.6251,498,796.82 International Finance Corp.2514 IFC 2,000,000.0045950VPT7 03/15/2026 2571.25003/15/2021 1,969,120.00 0.690 0.7002,000,000.00 International Finance Corp.2515 IFC 1,500,000.0045950VPU4 03/23/2026 2650.75003/23/2021 1,461,540.00 0.746 0.7571,499,921.40 International Finance Corp.2517 IFC 2,000,000.0045950VPU4 03/23/2026 2650.75003/23/2021 1,948,720.00 0.887 0.9001,997,866.16 International Finance Corp.2532 IFC 1,500,000.0045950VPY6 05/15/2026 3181.50005/28/2021 1,480,335.00 0.816 0.8271,500,000.00 International Finance Corp.2654 IFC 1,000,000.0045950KCX6 10/08/2026 4640.75001/12/2022 961,310.00 1.518 1.540990,362.73 International Finance Corp.3072 IFC 1,000,000.0045950KDH0 07/02/2029 1,4624.25010/23/2024 1,016,530.00 3.979 4.0351,007,721.17 International Finance Corp.3078 IFC 1,000,000.0045950KDH0 07/02/2029 1,4624.25010/24/2024 1,016,530.00 4.026 4.0821,006,018.39 Subtotal and Average 70,636,400.95 70,884,000.00 70,099,753.54 2.406 2.439 785 Total Investments and Average 656,905,690.91 661,753,957.10 637,458,043.78 2.663 2.700 1,025 Portfolio CPA
AP
Run Date: 07/22/2025 - 22:51 FI (PRF_FI) 7.3.11
Report Ver. 7.3.11
Item D
Attachment B - Investment Portfolio

Item D: Staff Report
Pg.
30 Packet Pg. 439 of 461

1 General Investment Guidelines: Full Compliance
a) The max. stated final maturity of individual securities in the portfolio should be 10 years. b) A max. of 30 percent of the par value of the portfolio shall be invested in securities with maturities 24.9% beyond 5 years.
c) The City shall maintain a minimum of one month's cash needs in short term investments. d) At least
$50 million shall be maintained in securities maturing in less than 2 years.

Plus two managed pool accounts which provide instant liquidity:
- Local Agency Investment Fund (LAIF) - maximum investment limit is $75 million $72.6 million - Fidelity Investments $12.2 million
e) Should market value of the portfolio fall below 95 percent of the book value, report this fact within a 97.0% reasonable time to the City Council and evaluate if there are risk of holding securities to maturity. d) Commitments to purchase securities newly introduced on the market shall be made no more than three (3) working days before pricing.
f) Whenever possible, the City will obtain three or more quotations on the purchase or sale of comparable securities (excludes new issues, LAIF, City of Palo Alto bonds, money market accounts, and mutual funds).
2 U.S. Government Securities:

Full Compliance
a) There is no limit on purchase of these securities.
b) Securities will not exceed 10 years maturity.
3 U.S. Government Agency Securities: Full Compliance
a) There is no limit on purchase of these securities except for:

Callable and Multi-step-up securities provided that:
- The potential call dates are known at the time of purchase; - the interest rates at which they "step-up" are known at the time of purchase; and - the entire face value of the security is redeemed at the call date. - No more than 25 percent
of the par value of portfolio. 24.01%
b) Securities will not exceed 10 years maturity.
4 California State, California Local Government Agencies, and other United States State Bonds: Full Compliance a) Having at time of investment a minimum Double A (AA/Aa2) rating as provided by a nationally recognized rating service (e.g., Moody’s, Fitch, and/or Standard and Poor’s). b) May not exceed 40 percent of the par value of the portfolio. 38.77% 5 Certificates of Deposit (CD): Full Compliance
a) May not exceed 20 percent of the par value of the portfolio; None Held b) No more than 10 percent of the par value of the portfolio in collateralized CDs in any institution. c) Purchase collateralized deposits only from federally insured large banks that are rated by a nationally recognized rating agency (e.g. Moody's, Fitch, and/or Standard & Poor's). d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC) e) Rollovers are not permitted without specific instruction from authorized City staff. 6 Banker's Acceptance Notes (BA):

Full Compliance
a) No more than 30 percent of the par value of the portfolio. None Held b) Not to exceed 180 days maturity.
c) No more than $5 million with any one institution.

Attachment C
Investment Policy Compliance
As of June 30, 2025
Investment Policy Requirements
Compliance
Check / Actual
$259.3 million

0.57%
Item D
Attachment C - Investment
Policy Compliance

Item D: Staff Report
Pg.
31 Packet Pg. 440 of 461

Attachment C
Investment Policy Compliance
As of June 30, 2025
Investment Policy Requirements
Compliance
Check / Actual
7 Commercial Paper: Full Compliance
a) No more than 15 percent of the par value of the portfolio. None Held b) Having highest letter or numerical rating fr om a nationally recognized rating service. c) Not to exceed 270 days maturity.
d) No more than $3 million or 10 percent
of the outstanding commercial paper of any one institution, whichever is lesser.
8 Short-Term Repurchase Agreement (REPO): Full Compliance a) Not to exceed 1 year. None Held
b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities. 9 Money Market Deposit Accounts Full Compliance
a) Liquid bank accounts which seek to maintain a net asset value of $1.00. 10 Mutual Funds: Full Compliance
a) No more than 20 percent of the par value of the portfolio. None Held b) No more than 10 percent of the par value with any one institution. 11 Negotiable Certificates of Deposit (NCD): Full Compliance a) No more than 20 percent of the par value of the portfolio. 11.70% b) No more than $5 million in any one institution. Federally Insured 12 Medium-Term Corporate Notes: Full Compliance
a) No more than 10 percent of the par value of the portfolio. 3.63% b) Not to exceed 5 years maturity.
c) Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally recognized rating service.
d) No more than $5 million of the par value may be invested in securities of any single issuer, other than the U.S. Government, its agencies and instrumentality. e) If securities owned by the City are downgraded by either rating agencies to a level below AA it shall be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities.
13 Supranational Organizations Securities:

Full Compliance
a) Securities will not exceed 5 years maturity
b) No more than 20 percent of the par value of the portfolio. 8.10% c) No more than 10 percent in any one institution. Full Compliance d) Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally recognized rating service.
14 Prohibited Investments:
a) Reverse Repurchase Agreements
b) Derivatives as defined in Appendix B of the Investment Policy 15 All securities shall be delivered to the City's safekeeping custodian, and held in the name of the City, with the exception of :
- Certificates of Deposit, Mutual Funds, and Local Agency Investment Fund (LAIF) Full Compliance
None Held
Full Compliance
Item D
Attachment C - Investment
Policy Compliance

Item D: Staff Report
Pg.
32 Packet Pg. 441 of 461

City Council
Staff Report
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: August 18, 2025
Report #:2501-4042
TITLE
City of Palo Alto Monthly Investment Activity Report July 2025 (Unaudited)

ATTACHMENTS
Attachment A: July 2025 Monthly Investment Activity Report APPROVED BY:

Lauren Lai, Administrative Services Director
Item E
Item E Staff Report

Item E: Staff Report
Pg.
1 Packet Pg. 442 of 461

CITY OF PALO ALTO
MONTHLY INVESTMENT ACTIVITY REPORT
July 2025 (Unaudited)

TO: Honorable City Council
Report Posted at the City’s Website: www.cityofpaloalto.org/investmentreporting Above Link on Council Agenda of August 18, 2025
______________________________________________________________________

The City’s Investment Policy1 (Policy) and California Government Code Section 53607 requires that a report of transactions (investments, reinvestment, sold, and exchanged securities) be made available to the Council on a monthly basis.

The attached list of transactions (Attachment A) also includes, though not required by the Policy or the government code, security maturities and cash movement activity in the City’s two liquid operating cash pool accounts (Local Agency Investment Fund or LAIF and Fidelity accounts). Liquid cash are available on a daily basis but are invested by the two entities in a range of securities (e.g., treasuries, federal agencies, commercial paper, corporate bonds, time deposits, loans, and certificate of deposits/bank notes).

This reporting requirement is separate and distinct from the quarterly investment report submitted under California Government Code Section 53646 that includes portfolio composition, a detailed list of all securities, performance compared to the Policy, overall compliance with the Policy, and the City’s ability to meet expenditure requirements over the next six months.

Prepared by:

_______________________
Tarun Narayan
Mgr. Treasury, Debt &
Investments

________________
Date
Approved by:

_______________________
Christine Paras
Asst. Director ASD

_________________
Date

______________________
Lauren Lai
Chief Financial Officer

_________________
Date

1 https://www.cityofpaloalto.org/files/assets/public/v/1/administrative‐services/investment‐policies/adopted‐investment‐policy‐1‐39‐asd.pdf Docusign Envelope ID: 3C3F3DC4-E7FF-401C-A2BF-7FFA1D9CD6EA 8/5/2025
8/6/2025
8/7/2025
Item E
Attachment A - July 2025
Monthly Investment Activity
Report

Item E: Staff Report
Pg.
2 Packet Pg. 443 of 461

City of Palo Alto
Activity Report
City of Palo Alto
Administration Svcs. Dept.
250 Hamilton Ave., 4th Floor
Palo Alto, CA 94301
(650)329-2362
Sorted By Safekeeper
July 1, 2025 - July 31, 2025
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Percent
of Portfolio
Par Value
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
Safekeeper: U.S. Bank
Negotiable Certificates of Deposits
Bank of Wisconsin Dells2455 NCD 0.001.050 07/28/2025 249,000.00065847EH4 Exchange State Bank3029 NCD 0.004.600 07/06/2025 249,000.00301485AN8 498,000.0027,826,000.00 27,328,000.00Subtotal and Balance 0.00 Corporate Medium Term Bonds
31,850,000.00 31,850,000.00Subtotal and Balance
Federal Agency Bonds
Federal Home Loan Bank3111 Call 0.005.600 07/27/2025 1,500,000.003130B44G3 1,500,000.00205,809,000.00 204,309,000.00Subtotal and Balance 0.00 Treasury Securities (Notes)
4,500,000.00 4,500,000.00Subtotal and Balance
Municipal Bonds
State of Utah2306 MUN 0.003.539 07/01/2025 295,225.00917542QV7 Sequoia Union High School Dist2320 MUN 0.001.735 07/01/2025 400,000.00817409N35 Palo Alto Unified School Dist.2838 MUN 0.005.862 07/01/2025 401,785.71697379TV7 Palo Alto Unified School Dist.2839 MUN 0.005.862 07/01/2025 401,785.71697379TV7 Palo Alto Unified School Dist.2841 MUN 0.005.862 07/01/2025 396,428.57697379TV7 State of Georgia2981 MUN 0.004.150 07/01/2025 1,000,000.00373384TP1 2,895,224.99236,145,639.11 233,250,414.12Subtotal and Balance 0.00 Supranationals (World Bank) Bonds
70,884,000.00 70,884,000.00Subtotal and Balance

0.00 4,893,224.99577,014,639.11 572,121,414.1294.919%Safekeeper Subtotal Safekeeper: Not applicable - Cash/Managed Pool Accounts LAIF & Fidelity Cash Accounts
Fidelity Investments158 0.004.190 1,050,000.00SYS158
Local Agency Investment Fund159 13,035,019.194.260 66,100,000.00SYS159 Portfolio CPA
AP
Run Date: 08/05/2025 - 12:11 DA (PRF_DA) 7.3.11
Report Ver. 7.3.11
Attachment A
Docusign Envelope ID: 3C3F3DC4-E7FF-401C-A2BF-7FFA1D9CD6EA Item E
Attachment A - July 2025 Monthly
Investment Activity Report

Item E: Staff Report
Pg.
3 Packet Pg. 444 of 461

Current
Rate
Transaction
Date Balance
Beginning
Balance
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Palo Alto City CouncilAugust 18, 2025

Palo Alto City Council
August 18, 2025