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HomeMy WebLinkAbout2025-06-16 City Council Agenda PacketCITY COUNCIL Regular Meeting Monday, June 16, 2025 Council Chambers & Hybrid 5:30 PM Amended Agenda Amended agenda items appear below in RED Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900-6833 PUBLIC COMMENTS General Public Comment for items not on the agenda will be accepted in person for up to three minutes or an amount of time determined by the Chair. General public comment will be heard for 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. Public comments for agendized items will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. Requests to speak will be taken until 5 minutes after the staff’s presentation or as determined by the Chair. Written public comments can be submitted in advance to city.council@PaloAlto.gov and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@PaloAlto.gov at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. TIME ESTIMATES Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. 1 June 16, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. CALL TO ORDER   AGENDA CHANGES, ADDITIONS AND DELETIONS   PUBLIC COMMENT (5:35 - 6:05 PM) Members of the public may speak in-person ONLY to any item NOT on the agenda. 1-3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:05 - 6:15 PM) Members of the public may not speak to the item(s).   CONSENT CALENDAR (6:15 - 6:20 PM) Items will be voted in one motion unless removed from the calendar by three Council Members.   1.Approval of Minutes from June 2, 2025 Meeting 2.Adoption of a Resolution Revising the Citywide Records Retention Schedule and Repealing Resolution No. 9565 3.Approval of Office of the City Auditor Emergency Preparedness: Wildfire Audit Report as Recommended by the Policy & Services Committee 4.Recommendation that the City Council to Refer to the Policy and Services Committee an Update to the City of Palo Alto Advocacy Process Manual to Address Sponsorship of Legislation; CEQA – Not a Project 5.Policy & Services Committee Recommends Approval to Amend the City Auditor Bakertilly FY2024 and FY2025 Budgets for Task Orders to Realign the Authorized Budgets with a Net Zero Impact; CEQA - Not a Project 6.Approval of the Council Appointed Officers (CAO) Committee‘s Recommendation to Approve the CAO Annual Evaluation Process, Timeline, and Questions; and Approval of Professional Services Contract Number C25193915 with the Municipal Resources Group, LLC (MRG) in an Amount Not to Exceed $208,500 for Council Appointed Officer Performance Evaluation Services for a Period of Three Years. CEQA Status - Not A Project 7.Recommend the City Council Adopt the Fiscal Year 2026 Investment Policy as Recommended by the Finance Committee: CEQA Status – Not a Project 8.Adoption of Memoranda of Agreement with International Association of Fire Fighters (IAFF) Local 1319, Fire Chiefs Association (FCA), and Utilities Managers and Professionals Association of Palo Alto (UMPAPA) for Terms Ending June 30, 2028, and Adoption of the  2 June 16, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. Updated Management and Professional Compensation Plan and Corresponding Salary Schedules; CEQA Status – Not a Project Supplemental Report added, Public Comment 9.Approval of a Surveillance Use Policy for Security Cameras at Ada's Café at Mitchell Park Community Center and Library; CEQA Status - Not a Project Updated Consent Questions 10.City Council Appointment of the Castilleja Neighborhood Committee in Accordance with Condition Number 33 Contained in Record of Land Use Action 2022-22 Authorizing Redevelopment of Private School at 1310 Bryant Street (Castilleja School). Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section 15061(b)(3). 11.Accept Electric System Reliability Key Performance Indices; CEQA – Not a Project 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) Consent Questions 13.Approve and Authorize the City Manager or Designee to Execute Purchase Orders as Needed with the Okonite Company, Extending the Term for the Blanket Purchase Order for Purchase and Standardization of Underground Cable Through December 31, 2025, and to Increase the Not-to-Exceed Amount by $100,000, for the Extension Period. CEQA Status: Not a Project. 14.Approval of Construction Contract No. C25194279 with Estate Design and Construction, Inc. in the Amount Not-to-Exceed $283,770 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $28,377 for the University Underpass Refurbishment Project; Capital Improvement Program University Avenue Parking Improvements (PF-14003) and Street Lights Improvements (PO-05054) projects; CEQA Status – Exempt under CEQA Guidelines Section 15301(c)  3 June 16, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. 15.​Approval of Change Order No. 3 to Contract C22183580 with MP Nexlevel of California, Inc., to reallocate funding from Change Order No. 2 to the Fiber-to-the-Premises (FTTP) Project and to incorporate FTTP into the Scope of Work extending through August 31, 2025; CEQA Status - For FTTP, Council action on this item is within the scope of the Final Initial Study and Mitigated Negative Declaration (IS/MND) for the Fiber-to-the-Premises Project, adopted on June 17, 2024; otherwise exempt. Public Comment 16.Approval of Two Professional Services Contracts for a Term of Two Years: C25193536 with 4Leaf, Inc. in an Amount Not-to-Exceed $291,253 and C25194267 with Interface Engineering, Inc. in an Amount Not-to-Exceed $101,585 for Fire Station 4 Replacement Capital Improvement Program Project (PE-18004); CEQA Status - Exempt under CEQA Guidelines Sections 15302 and 15303 Public Comment 17.Approval of Contract Amendment No. 4 to Contract Number C19171363 with Professional Account Management LLC, dba Duncan Solutions, to Extend the Contract for one year to June 30, 2026, and to Adjust Billing Rates, Without an Increase to Compensation, for a Not -to-Exceed Amount of $767,000 for Parking Permitting and Citation Management Services; CEQA Status -- Not a Project. Updated Consent Questions 18.Approval of Amendment No. 3 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $1,100,000 for a total not to exceed $4,901,550 over a Four-Year Term to Continue the City of Palo Alto On-Demand Transit Service through June 30, 2026; CEQA status - not a project. Item Deferred to June 17, 2025 City Council Meeting 19.QUASI-JUDICIAL. 1033 Amarillo Avenue [25PLN-00015]: Request for a Parcel Map with Conditional Exceptions to Subdivide a 20,774-Square-Foot R-1 Property into Two Lots (10,661 and 10,113 Square Feet). Exceptions include Minimum Lot Width, Maximum Lot Size, and Residential Density. Zoning District: R-1 Single Family Residential. CEQA: Exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities). 20.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending: Chapter 18.14 (Housing Incentives) of the Palo Alto Municipal Code to Implement Program 3.4E of the 2023-2031 Housing Element to Expand and Revise Regulations for the El Camino Real Focus Area; Making Conforming Amendments to Chapter 16.58 (Development Impact Fees) (FIRST READING: May 27, 2025; PASSED: 5-0-2, Lu, Veenker recused) Public Comment 21.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Title 16 (Building Regulations) and Title 18 (Zoning) of the Palo Alto Municipal Code to Amend  4 June 16, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. Requirements Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units (FIRST READING: May 12, 2025; PASSED 7-0) CITY MANAGER COMMENTS (6:20 - 6:35 PM)   BREAK (15 MINUTES) ACTION ITEMS (Item 22: 6:50 - 7:50 PM, Item 23: 7:50 - 9:20 PM, Item 24: 9:20 - 10:00 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.   22.PUBLIC HEARING & PROPOSITION 218 HEARING: Finance Committee Recommends Adoption of Six Resolutions: 1) Approving the Fiscal Year 2026 Wastewater Collection Utility Financial Forecast and Reserve Management Practices, Amending Wastewater Collection Rate Schedules S-1, S-2, S-6 and S-7, and Repealing Wastewater Collection Rate Schedules S-3 and S-4; 2) Approving the Fiscal Year 2026 Water Utility Financial Forecast, Reserve Management Practices and Reserve Transfers, and Amending Water Rate Schedules W-1, W-2, W-3, W-4, and W-7; 3) Approving the Fiscal Year 2026 Gas Utility Financial Forecast and Reserve Management Practices, Reserve Transfer, and General Fund Transfer, Approving the Distribution of a Climate Credit to Small and Medium Capacity G-2 Customers in December 2025, and Amending Gas Rate Schedules G-1, G-2, G-3 and G-10; 4) Approving the Fiscal Year 2026 Electric Utility Financial Forecast, Reserve Management Practices and Reserve Transfers, and Amending Electric Rate Schedules E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU, E-14, E-16, E- EEC-1, and E-NSE-1; 5) Amending Utility Rate Schedules EDF-1 and EDF-2, and Approving the Palo Alto Fiber Broadband Internet Services Rate Schedule F-1; and 6) Amending Storm Water Utility Rate Schedule D-1; CEQA Status: Not a project under CEQA Guidelines Sections 15378(b)(4) and (5) and Exempt Under Section 15273(a) Staff Presentation, Public Comment 23.PUBLIC HEARING: Presentation on Status of Vacancies and Recruitment and Retention Efforts and Adoption of Budget Ordinance for Fiscal Year 2026, Including the Operating and Capital Budgets and Municipal Fee Schedule; Adoption of a Resolution determining the Appropriations Limit for Fiscal Year 2026; Vacancies and Recruitment Update (AB2561 Compliance); and Approval of FY 2026 Non-Profit Workplan Phase I Awards as Recommended by the Policy & Services Committee; and Adoption of a Resolution to Extend and Amend the Development Services Reserve Fund Policy; CEQA Status – Not a Project Title Updated, Supplemental Report added, Staff Presentation, SEIU Presentation, Public Comment 24.Approval of Five Items to Support the Newell Road/San Francisquito Creek Bridge  5 June 16, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. Replacement Project PE-12011: 1) Construction Contract No. C25194068 with Granite Construction Company in the Amount Not-to-Exceed $9,399,787 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders to the Contract up to a Not-to-Exceed Amount of $939,979; 2) Approval of Professional Services Contract No. C25190454 with Zoon Engineering, Inc, in the Amount of $2,559,915 for Construction Management Services through December 31, 2026; 3) Approval of Amendment No. 7 to Contract No. C12142825 with NV5, Inc. to extend the contract term through December 31, 2026 for Construction Support; 4) Approval of Amendment No. 3 to a Cost Share Agreement with Santa Clara Valley Water District Providing Local Matching Funds in the Amount $155,458 for Design, Right of Way Appraisal and Acquisition and Construction Support for the Newell Road/San Francisquito Creek Bridge Replacement Project; and 5) Adoption of a FY 2025 Budget Amendment in the Capital Improvement Fund; CEQA Status - Environmental Impact Report for Newell Road/San Francisquito Creek Bridge (Resolution No. 9889) Staff Presentation, Public Comment ADJOURNMENT INFORMATION REPORTS Information reports are provided for informational purposes only to the Council and the public but are not listed for action or discussion during this meeting’s agenda.   A.Boards, Commissions, and Committees Mid-Year Attendance Report; CEQA Status - Not a Project B.Summary of Downtown Housing Plan Community Assessment Report and Next Steps. CEQA Status: Exempt under CEQA Guidelines Section 15262. C.Rental Residential Vacancy Rate Determination for Properties Containing Three or More Dwelling Units for the First Half of 2025. CEQA: Not a Project, Pursuant to CEQA Guidelines Section 15378(b). OTHER INFORMATION Standing Committee Meetings this week Finance Committee June 17, 2025 CANCELED Retail Committee June 18, 2025 Public Comment Letters Schedule of Meetings  6 June 16, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.   AMENDED AGENDA ITEMS   8.Adoption of Memoranda of Agreement with International Association of Fire Fighters (IAFF) Local 1319, Fire Chiefs Association (FCA), and Utilities Managers and Professionals Association of Palo Alto (UMPAPA) for Terms Ending June 30, 2028, and Adoption of the Updated Management and Professional Compensation Plan and Corresponding Salary Schedules; CEQA Status – Not a Project Supplemental Report added   18.Approval of Amendment No. 3 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $1,100,000 for a total not to exceed $4,901,550 over a Four-Year Term to Continue the City of Palo Alto On-Demand Transit Service through June 30, 2026; CEQA status - not a project. Item Deferred to June 17, 2025 City Council Meeting   23.PUBLIC HEARING: Presentation on Status of Vacancies and Recruitment and Retention Efforts and Adoption of Budget Ordinance for Fiscal Year 2026, Including the Operating and Capital Budgets and Municipal Fee Schedule; Adoption of a Resolution determining the Appropriations Limit for Fiscal Year 2026; Vacancies and Recruitment Update (AB2561 Compliance); and Approval of FY 2026 Non-Profit Workplan Phase I Awards as Recommended by the Policy & Services Committee; and Adoption of a Resolution to Extend and Amend the Development Services Reserve Fund Policy; CEQA Status – Not a Project Title Updated, Supplemental Report added   PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@PaloAlto.gov. 2.For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3.Spoken public comments for agendized items using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. ◦You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below.  7 June 16, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. ◦You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. ◦When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. ◦When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4.Spoken public comments for agendized items using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362-027-238 Phone: 1-669-900-6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329-2550 (voice) or by emailing ada@PaloAlto.gov. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.   California Government Code §84308, commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $500 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures and have a value over $50,000. A “party” is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign contribution to a Council Member exceeding $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.  8 June 16, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: June 16, 2025 Report #:2506-4766 TITLE Approval of Minutes from June 2, 2025 Meeting RECOMMENDATION Staff recommends that the City Council review and approve the minutes. ATTACHMENTS Attachment A: June 2, 2025 Draft Action Minutes APPROVED BY: Mahealani Ah Yun, City Clerk Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 1  Packet Pg. 9 of 1138  CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 5 Regular Meeting June 2, 2025 The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M. Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Present Remotely: Absent: Board and Commission Appointments 1. Appointment of Candidates to the Vacancies on the Architectural Review Board; CEQA Status - Not a Project Architectural Review Board First Round Voting for Three (3) vacancies (seats 1, 2, 5) on the Architectural Review Board ending March 31, 2028 Ashutosh Gupta: Lauing, Stone Bei Xu: Lu, Lythcott-Haims David Hirsch: Lauing, Stone, Lu, Veenker, Reckdahl, Burt, Lythcott-Haims Grace Lee: Burt Khelan Bhatt: Veenker Marton Jojarth: Reckdahl, Burt Naveen Govind: Sema Yavuz: Yingxi Chen: Lauing, Stone, Lu, Veenker, Reckdahl, Lythcott-Haims Candidate David Hirsch receiving seven votes is appointed to the full-term expiring March 31, 2028 (seat 2). Candidate Yingxi Chen receiving six votes is appointed to the full-term expiring March 31, 2028 (seat 5). No other candidate received four votes required to be appointed to the full-term expiring March 31, 2028. A second round of voting is required. Item 1 Attachment A - June 2, 2025 Draft Action Minutes        Item 1: Staff Report Pg. 2  Packet Pg. 10 of 1138  DRAFT ACTION MINUTES Page 2 of 5 City Council Meeting Draft Action Minutes: 06/02/2025 Second Round Voting for One (1) vacancy (seat 1) on the Architectural Review Board ending March 31, 2028 Ashutosh Gupta: Lauing, Stone Bei Xu: Lythcott-Haims, Lu Grace Lee: Khelan Bhatt: Veenker Marton Jojarth: Reckdahl, Burt Naveen Govind: Sema Yavuz: No candidate received four votes required to be appointed to the full-term expiring March 31, 2028. A third round of voting is required. Third Round Voting for One (1) vacancy (seat 1) on the Architectural Review Board ending March 31, 2028 Ashutosh Gupta: Lauing Bei Xu: Stone, Lythcott-Haims, Lu Khelan Bhatt: Marton Jojarth: Veenker, Reckdahl, Burt No candidate received four votes required to be appointed to the full-term expiring March 31, 2028. A fourth round of voting is required. Fourth Round Voting for One (1) vacancy (seat 1) on the Architectural Review Board ending March 31, 2028. Ashutosh Gupta: Bei Xu: Lu, Stone, Lythcott-Haims Marton Jojarth: Lauing, Reckdahl, Burt, Veenker Candidate Marton Jojarth receiving four votes is appointed to the full-term expiring March 31, 2028 (seat 1). Closed Session 2. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Subject: Downtown Vibrancy v. City of Palo Alto, et al., Santa Clara County Superior Court Case No. 25CV464012 Authority: Government Code Section 54956.9(d)(1) AA1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Item 1 Attachment A - June 2, 2025 Draft Action Minutes        Item 1: Staff Report Pg. 3  Packet Pg. 11 of 1138  DRAFT ACTION MINUTES Page 3 of 5 City Council Meeting Draft Action Minutes: 06/02/2025 Property: 2575 East Bayshore Road; Assessor’s Parcel Number 008-03-015 Negotiating Parties: C H LLC. City Negotiators: Ed Shikada, Kiely Nose, Alan Kurotori, Sunny Tong Subject of Negotiations: Purchase and/or Lease Price and Terms of Payment MOTION: Councilmember Veenker moved, seconded by Councilmember Lu to go into Closed Session. MOTION PASSED: 7-0 Council went into Closed Session at 5:57 P.M. Council returned from Closed Session at 7:15 P.M. Mayor Lauing announced no reportable action. Agenda Changes, Additions and Deletions Public Comment Council Member Questions, Comments and Announcements Study Session 3. Bicycle and Pedestrian Transportation Plan (BPTP) Update: Draft Project Prioritization Framework and Prioritized Project Lists NO ACTION Consent Calendar MOTION: Councilmember Burt moved, seconded by Councilmember Reckdahl to approve Agenda Item Numbers 4-11. MOTION PASSED: 7-0 4. Approval of Minutes from May 19, 2025 Meeting Item 1 Attachment A - June 2, 2025 Draft Action Minutes        Item 1: Staff Report Pg. 4  Packet Pg. 12 of 1138  DRAFT ACTION MINUTES Page 4 of 5 City Council Meeting Draft Action Minutes: 06/02/2025 5. Approval of and Authorization of City Manager or their Designee to Execute an Exchange Agreement with Midpeninsula Regional Open Space District for Replacement of Overhead Utility Facilities with Underground Facilities and Exchange and Transfer Real Property Interests within Monte Bello Open Space Preserve and Rancho San Antonio Open Space Preserve, Assessor’s Parcel Numbers 351-25-014, 351-06-025, 351- 09-002, and 351-12-069; CEQA Status – Exempt Under CEQA Guidelines Section 15302 6. Adoption of a Resolution Approving the Safe Streets for All (SS4A) Safety Action Plan as Recommended by the Policy & Services Committee 7. Approval of Contract Amendment Number 4 to Contract Number C16166822 with ARC Document Solutions in the Amount of $1,020,000, Bringing the New Total Not To Exceed to $3,855,340, for Copiers/Printers to increase; CEQA Status - Not a Project 8. Approval of Contract Amendment No. 2 to Contract Number C21179340 with Baker Tilly US, LLP in the Amount of $2,126,250 and to Extend Term to June 30, 2026, with Option to Extend for Two Years, for Internal Auditing Services; Revised Total Not to Exceed is $5,552,500, CEQA Status – Not a Project. 9. Approval of Construction Contract Number C25194073 with G. Bortolotto & Company Inc. in the Amount of $3,817,942 for the Fiscal Year 2025 Asphalt Paving Project; Capital Improvement Program Projects PE-86070, PE-09003, PL-12000, and PG-06001; and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $376,926; CEQA Status – Exempt under CEQA Guidelines Section 15301(c) 10. Approval of Construction Contract No. C25193583 with Stronger Building Services in the Not-to-Exceed Amount of $440,250 for the Lucie Stern Community Center Theater Roof Underlayment Replacement Project as part of the Roofing Replacement Program, Capital Improvement Program PF-00006 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not-to-Exceed Amount of $44,025; CEQA status - Exempt under CEQA Guideline Sections 15301 and 15302 11. Adoption of a Resolution for Senate Bill 1, the Road Repair and Accountability Act, for Fiscal Year 2026, Providing the Project List for the Street Maintenance Project, Capital Improvement Program Project (PE-86070); CEQA Status – Not a Project City Manager Comments Ed Shikada, City Manager Item 1 Attachment A - June 2, 2025 Draft Action Minutes        Item 1: Staff Report Pg. 5  Packet Pg. 13 of 1138  DRAFT ACTION MINUTES Page 5 of 5 City Council Meeting Draft Action Minutes: 06/02/2025 Action Items 12. LEGISLATIVE. Adoption of a Temporary, Emergency Ordinance Amending Title 18 and Title 21 to Reflect Changes in State Law in Accordance with Senate Bill 1123 and Related Direction to Staff Regarding Updates to the Land Use Element of the Comprehensive Plan. CEQA Status: Exempt Pursuant to Government Code Sections 65852.28 and 66499.41. Agenda Item Number 12 deferred to a future City Council meeting June 9, 2025. Adjournment: The meeting was adjourned at 9:47 P.M. ATTEST: APPROVED: ____________________ ____________________ City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website. Item 1 Attachment A - June 2, 2025 Draft Action Minutes        Item 1: Staff Report Pg. 6  Packet Pg. 14 of 1138  City Council Staff Report From: City Clerk Report Type: CONSENT CALENDAR Meeting Date: June 16, 2025 Report #:2504-4575 TITLE Adoption of a Resolution Revising the Citywide Records Retention Schedule and Repealing Resolution No. 9565; CEQA Status – Not a Project RECOMMENDATION Staff recommends that the City Council adopt a Resolution adopting a revised Records Retention Schedule and repealing Resolution No. 9565. BACKGROUND The City Clerk’s Office oversees the administration and retention of the City’s official records through the Records and Information Management (RIM) Program. The program facilitates public access to City information, protects the City’s vital records, provides a process for the disposal of obsolete records, and provides the availability of essential information for the resumption of operation in the event of a major disaster. The City’s Records Retention Schedule is an integral part of the RIM Program. The Schedule describes the type of records each department maintains, how long records will be retained and the relevant statutory reference, and department remarks, if any. Departments use their respective retention schedule to organize and properly dispose of obsolete records past their retention date. ANALYSIS The City last updated its Records Retention Schedule in 20151. Staff from the City Clerk’s Office, City Attorney’s Office, and each department collaborated on the Schedule update. The revised schedule includes updated statutory references, reflects recordkeeping best practices, and incorporates department needs and preferences, subject to retention requirements. Departments may retain certain records longer than the statutory minimum desired or Redline 1 City Council, December 7, 2015; Agenda Item #9; SR #6392 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=78116 Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 1  Packet Pg. 15 of 1138  and clean versions of the revised Schedule are included as Attachment B and Attachment C. versions of the revised Schedule are included as Attachment B and Attachment C. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 2  Packet Pg. 16 of 1138  1 Resolution No. ______ Item 2 Attachment A - Resolution Adopting a Citywide Records Retention Schedule and Repealing Resolution No. 9565        Item 2: Staff Report Pg. 3  Packet Pg. 17 of 1138  2 SECTION 2. Resolution No. 9565 is hereby repealed. SECTION 3. The Council finds that the adoption of this resolution does not constitute a project for purposes of the California Environmental Quality Act, and, therefore, no environmental assessment is required. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Deputy City Attorney City Manager City Clerk Item 2 Attachment A - Resolution Adopting a Citywide Records Retention Schedule and Repealing Resolution No. 9565        Item 2: Staff Report Pg. 4  Packet Pg. 18 of 1138  READING THE RETENTION SCHEDULE:  A "HOW TO" GUIDE  BACKGROUND   The Retention Schedule, as approved by the City Council through Resolution, is a legal document. It  identifies the types of records and information used and managed by a department, how long that  information must be retained at the office and/or off‐site, and when it may be destroyed.   Each department is required to have a current Schedule. It is the responsibility of the department to notify  the City Clerk’s Office of any business, organizational, functional, or legal changes which would impact  their specific Schedule. The City Clerk’s Office coordinates with the departments and Office of the City  Attorney (who which reviews them the schedules for compliance with all government codes and  regulations) prior to approval by the City Council. The Schedules should be reviewed for accuracy every  two to three years by the City Clerk’s and City Attorney’s Offices in conjunction with each respective  department.    USING RETENTION SCHEDULES DEFINITIONS   Description – This is the general description of a group of records with similar business functions and  retention requirements. The description must coincide with file titles maintained by the department.  Total Retention – This refers to the length of time a record must be kept before it is eligible for  destruction.  C – Current refers to the current calendar year in which a record is made. The Retention period begins the  first day of the following calendar year. (For example, Cur+2 means that any record created in 20215 is  kept for the two following years, 20216 and 20217. The record would be eligible for destruction after  December 31, 20217).  PER – Permanent refers to records that should be kept in perpetuity and never destroyed.  SUP – Supersede indicates that old items are replaced by a more current version.  TER—Termination refers to the end date of a contract, agreement, term, etc.   Statutory Reference – This s field includes regulations and codes that govern the retention of a specific  record type. All references are to California Code unless otherwise noted.   Remarks – This field includes general comments about the information in this row. When "Department  Opinion" is noted in this column, it means that the Department has decided to maintain the record longer  than the legal requirement. "Attorney Opinion" indicates that the retention requirement was established  pursuant to the opinion of the City Attorney based on research, past litigation history, and/or the potential  for future litigation on this topic. The 2025 revision preserves Department and Attorney Opinions from  previous versions of the schedule.   Page 1 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 5  Packet Pg. 19 of 1138  City of Palo Alto  Records Retention Schedule    Administrative Services  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  ADMINISTRATION          Correspondence, Messages,  Timecards, Staff Meetings, Studies  C+3    Auditors Opinions  2  OTHER DEPARTMENTS – Finance  Committee‐Agendas, Minutes,  Records, Retention Schedule,  Reports, Audit Work papers,   While  useful   Duplicate of City Manager, Auditor  and City Clerk  3 Gifts to the City, Cash & Tangible  Property  C+6   Scanned list on CD Rom in Admin  Svcs Dept files  TREASURY           4  INVESTMENT MANAGEMENT‐ Security Purchases, Sales &  Investment Reports  C+7    Auditors Opinion  5 DEBT MANAGEMENT‐             (a) Deceased Insurance C+3    Department Opinion    (b) Final Bond TER+4   Duplicate Stored Offsite as vital  copy backup    (c)  Covenant Compliance TER+7   Duplicate stored offsite as vital  copy backup    (d)  Bank Records C+7   Duplicate stored offsite as vital  copy backup  REVENUE COLLECTION          6 (a)  Deposit/Reconciliation  Documentation  C+2 GC 34090     (b)  Parking Permit Records C+4 GC 34090        (c)  Collection Records – UUT, Hand  Written Parking Citations,  Delinquent Accounts, Reconciliation,  Transient Occupancy Tax  C+5    Department Opinion    (d)  Utility Receipt Stubs   GC 34090     BUSINESS LICENSE TER+4 GC 34090;  CCP 337       LIENS & RELEASES  (a) Recorded Liens & Releases  (b) Supporting Recorded  Documentation    PER  TER+2 GC 34090     BUDGET          7 BUDGE            (a) Final Budget, CIP Budgets, Fee  Schedule  TER+4         (b) Supporting Documents for  Change Requests, Amendments,  Worksheets, Fee Schedules & Cost  Plans  C+2    Auditors Opinion  Page 2 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 6  Packet Pg. 20 of 1138  City of Palo Alto  Records Retention Schedule    Administrative Services  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede     (c) Long Range Plans Studies,  Reports, Measurements, Forecasts  & Projections  C+3    Auditors Opinion  REAL ESTATE          8 BINDING INSTRUMENTS           (a)   Land – Deeds, Easements PER   Duplicate of City Clerk    (b)   Easement Vacations, Leases &  Purchases  PER   Duplicate of City Clerk    (c) Encroachments, Agreements &  Conveyances  PER   Duplicate of City Clerk  PURCHASING          9  (a)      Council Approved Contracts,  Solicitations & Documents. All Open  Council Approved Contracts,  Solicitations & Documents  TER+ 4 While  Useful  CCP 337.2   CCP 343    Council Approved Contracts  Dduplicate of City Clerk     (b) Service Contracts, Purchase  Orders, Blanket Purchase Orders &  Solicitations & Documents  i. Purchase Orders/Blanket Orders  ii. Service Order Contracts  iii. Council Approved  TER+34 TER+45 TER+7  While  Useful   CCP 337.2   CCP 343    Duplicate of City Clerk    (c) Bids Unawarded Solicitations &  Documents  C+2 GC 34090 Department Opinion vital while  orders are open  10  INTERNAL VENDORS ‐  (Stores &  Print Shop) Reports, Orders,  Returns, Disposal Forms Journal &  Requisitions  C+4    Department and Auditors Opinion  ACCOUNTING          11 YEAR‐END REPORTS            (a) Budget‐to‐Actual C+2 GC 34090       (b) Comprehensive Annual Financial  Report (ACFR)  PER        (c) General Ledger, Encumbrance  Report  C+2 GC 34090       (d) Management Benefits  Transactions, Accruals  C+2 GC 34090      (e) Audit Work Papers & Journal  Entries  C+2  GC 34090  Digital copies of audit work  papers: saved on S drive, Jourrnal  Entries saved on SAP effective  March 2023     (f) ANNUAL PUBLIC IMPROVEMENT  CORPORATION‐STATE  CONTROLLERS REPORT  C+7    Digital copies only     (g) PIC TAX Return C+7   Digital copies only    (g) Annual Street Report C+7   Digital copies only    (h) City Financial Transaction Report     Digital copies only   Utility Receipt Stubs C+2     Page 3 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 7  Packet Pg. 21 of 1138  City of Palo Alto  Records Retention Schedule    Administrative Services  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede   ACCOUNTS PAYABLE          12 A/P + UTILITY CHECK   REGISTERS (WARRANTS)  C+7  C+7   Department and Auditors Opinion  (voided checks) Digital copies only  13  CANCELLED/VOIDED   WARRANTS. CHECK VOID FORMS +  BACKUP  C+4  C+7     Department and Auditors Opinion  (VOIDED CHECKS) Digital copies  only  14 VOUCHER PACKETS.   GENERAL WARRANT COPIES WITH  BACKUP FOR A/P, UTILITY REFUNDS,  3RD PARTY AND WIRE TRANSFERS  C+5  C+7   Department and Auditors Opinion  Digital copies only    15 CAPITAL PROJECTS TER+7    Department and Auditors Opinion    Project Files, Street Reports, &  Community Development Block  Grant (CDBG) Billings    Community Development Block  Grant (CDBG) Billings / Drawdown       Digital copies only     ANNUAL PUBLIC IMPROVEMENT  CORPORATION‐STATE  CONTROLLERS REPORT  C+7         CALIFORNIA AVENUE SPECIAL  ASSESSMENT PARKING DISTRICT  C+7       UNIVERSITY AVENUE SPECIAL  ASSESSMENT PARKING DISTRICT  C+7   Digital copies only    ANNUAL INTERGOVERNMENTAL  EXPENDITURES REPORT  C+7   Digital copies only    ZFIR03 AUTHORIZED SIGNATURE  COVER SHEETS  C+7     Cover sheet for batches off  invoices from departments sent to  A/P. Has list of invoices enclosed  and department authorization to  process the invoices.      A/P JOURNAL LOG C+7   Digital copies only    AUTHORIZING SIGNATURE FORMS C+7    Digital copies only    TAX RECORDS – Sales Tax Filings,  1099 Tax Filings & Registers  C+7   Digital copies only  16 GENERAL LEDGER‐ General Journal  Entries  C+7   saved on SAP  ACCOUNTS RECEIVABLE and CASH RECEIPTS          16  Backup for invoices created (such as  Airport, Avenidas, & Palo Alto  Community Childcare, Stanford, VTA  and others)             (a) Grants, Disaster Assistance,  Project Fund Requisitions, Arbitrage  Calculations  C+7     Federal & State Audit  Requirements  Duplicate stored offsite as vital  copy backup  Department Opinion  Page 4 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 8  Packet Pg. 22 of 1138  City of Palo Alto  Records Retention Schedule    Administrative Services  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede     b) Invoices, Facility Cash Receipts,  and Revenue Collections Cash  Receipts, Cash Receipt Journals and  Utility Cash Receipts  C+7 GC 34090,  CCP 338  Federal & State Audit  Requirements Duplicate stored offsite as vital  copy backup Department Opinion   Digital copies only  18  STATE REPORTS – City Reports,  Transit Operators and Component  Units  C+7    Department and Auditors Opinion  19  UTILITIES‐  (a) Loan Reconciliation Work Papers,  Bonds, Banking, Adjustments  (b) Receipts  C+7 GC 34090 Department and Auditors Opinion  20  FIXED ASSETS – Cost Reports,  Reconciliation, Resume of Activity &  Journal Entries  TER+3    Department and Auditors Opinion  21 PAYROLL  C+7   29 CFR  Section  1627.3  Labor  Relations  Section  1174  California  Labor Code  Section  1174  Public Employees Retirement  System and Department Opinion ‐‐  Duplicate stored offsite as vital  copy backup    Garnishment Orders C+7   SB 807 1/2022 CA Record  Retention ‐ 4 Years    Direct Deposit/ W4 Changes C+7    IRS Requirement ‐ 4 years    Copies of PSO PAF C+7   4 Years HR owns original copy  retention    CalPers Reporting C+7   4 Years HR owns original copy  retention    Third Party Reporting C+7    4 years    Payroll Quarterly Tax Reports C+7    IRS Requirement ‐ 4 years    Payroll Masterfile C+7    4 years    Payroll Reconciliations C+7    In accordance with GL    Payroll Journals C+7    In accordance with GL     W2 Copies C+4    IRS Requirement ‐ 4 years    Processing Reports by Paydate       ENTERPRISE/ GENERAL LEDGER ACCOUNTING        22  Backup for invoices created (Airport,  Avenidas, & Palo Alto Community  Childcare)  C+7       23 Loan reconciliations and backup  GL  Accounts Reconciliations   C+7       Page 5 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 9  Packet Pg. 23 of 1138  City of Palo Alto  Records Retention Schedule    Administrative Services  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  24 Reconciliations of utility and other  clearing accounts  C+5       25 Receipts/stubs from the daily utility  payments process (batch detail)  C+2+2  months GC 34090     26 Audit Backup & Journal Entries  Backup  C+2 GC 34090     27 Utility / Airport cash receipts C+7      28  Fixed assets backup of journal  entries, capitalization, disposals &  reconciliations  TER + 3                      Page 6 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 10  Packet Pg. 24 of 1138  City of Palo Alto  Records Retention Schedule  City Attorney’s Office  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  ADMINISTRATIVE RECORDS           100 General Info/Subject Files C+9 GC 34090  Restricted access to any files may contain  confidential documents. Keep files until  subject matter is no longer active.   Required to keep until reasonable threat  of legal action has passed.  100‐ 01 General Correspondence C+9 GC 34090     600  Purchasing/Contracts, invoices,  and purchase orders originating  in City Attorney’s Office  TERC+10   Duplicate of Purchasing Division; Review  on a file by file basis for destruction   100‐ 04 Chron File C+9 GC 34090    100‐ 04 Newsletters C+2 GC 34090    SUBJECT FILES          202‐ 01 Planning Reports As  Needed   Duplicate of Planning and Community  Environment (PCE)  202‐ 02  thru  202‐ 11  Development Plan/Certificates of  Compliance/Subdivision  As  Needed   Duplicate of City Clerk, Planning & Public  Works  202‐ 12  thru  202‐ 25  General Plan/Comprehensive  Plan/State Mandated Planning  As  Needed   Duplicate of PCE. Files to be reviewed for  destruction on a file by file basis.  203‐ 01  thru  203‐ 10  Regional Planning As  Needed   Duplicate of Planning; review on a file by  file basis  204‐ 01  thru  204‐ 04  Environmental Assessment C+4   Review on file‐by‐file basis for  destruction  205‐ 01  thru  205‐ 13  Stanford University C+9   Review on file by file basis for  destruction  206‐ 01  thru  206‐ 10  Building C+9   Review on file by file basis for  destruction  Page 7 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 11  Packet Pg. 25 of 1138  City of Palo Alto  Records Retention Schedule  City Attorney’s Office  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  207‐ 01  thru  207‐ 08  Transportation C+9   Duplicate of Transportation  301‐ 01  thru  301‐ 06  Legal memoranda to City Council C+11    Review on file by file basis for  destruction   Settlement Agreements C+10  Settlement agreements with ongoing  relevance retained for as long as needed   Municipal prosecutions TER+10  Review on file by file basis for  destruction   Attorney‐led investigations C+10  Review on file by file basis for  destruction  302‐ 01  thru  302‐ 11  Boards/Commissions/Committees C+11      303 American with Disabilities Act C+4      304 Records Management, Records  Retention Schedule C+4   Duplicate of City Clerk  305 Management Studies/Surveys C+4      401‐ 01  thru  401‐ 14  Finance Administration C+4   Duplicate of Administrative Services,  Public Works and Utilities  402‐ 01  thru  402‐ 07  Auditor Administration C+9   Duplicate of Auditor’s Files  403 General Audits C+9      500 Personnel Files C+9  GV 12946  & Title 29  Chpt XIV,  Sections  1602.30;  32; 38.    Some files may need to be retained until  threat of legal action passed.  Review on  file by file basis for destruction  600 Purchasing/Contracts C+10   Duplicate of Purchasing Division; Review  on a file by file basis for destruction  700 Legislative/Legal C+14   Review on file by file basis for  destruction  800 Public  Works/Engineering/Construction C+10   Review on file by file basis for  destruction;   Page 8 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 12  Packet Pg. 26 of 1138  City of Palo Alto  Records Retention Schedule  City Attorney’s Office  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  900 Litigation/cClaims CTER+10    Required to keep until reasonable threat  of legal action has passed.   On a file by  file basis assign archive time   Civil litigation files C+10   Required to keep until reasonable threat  of legal action has passed. On a file by  file basis assign archive time  1000 Real Estate C+15    Duplication of Real Estate Division/CLK.   Review on file by file basis for  destruction  1100 Parks C+4    Duplicate of Community Services.   Review on file by file basis for  destruction  1200 Municipal Utilities C+4   Duplicate; review on file by file basis  1300 Police Administration C+9 GC 34090 Review on file by file basis for  destruction  1400 Community Services C+4 GC 34090 Review on file by file basis for  destruction  1500 Fire Administration C+9 GC 34090 Review on file by file basis for  destruction  1600 Information Resources C+6 GC 34090 Review on file by file basis for  destruction                          Page 9 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 13  Packet Pg. 27 of 1138  City of Palo Alto  Records Retention Schedule  City Auditor  Series Description Total  Retention  Statutory  Reference  Remarks  ADMINISTRATIVE RECORDS  1 a.Office Budget and A/P C+5 Department Policy  2  b.Meeting Notes, Memo’s, Correspondence, Management Reports, Office Administrative files and Working files C+5 Department Policy  3  Contracts (All Open Council  Approved Contracts, Service  Contracts, Purchase Orders,  Blanket Purchase Orders,  Solicitations, and Documents  C+4 Duplicating of ASD Purchasing and  City Clerk  SUBJECT FILES  4  Publications (Audit Reports),  Status Reports, Revenue  Reports, Council Reports  PER    Department Policy.Post‐2025,  publications included City Council  /Committee agenda packets are  kept by CLK  5  Work Papers (supporting  documentation for published  reports)  C+7    Department Policy While City Auditor is outsourced, duplicates kept by relevant department as needed.  6  Revenue Audit Work Papers  (Sales, TOT, UUT, Prop. Tax  etc.)  C+7 Department Policy (Confidential) While City Auditor is outsourced, duplicates kept by relevant department as needed.  7 Fraud, Waste, and Abuse  Hotline documentation CLTER+5  Department Policy While City Auditor is outsourced, duplicates may be kept by another associated department as needed.  GC 34090 GC 34090 GC 34090 GC 34090 Page 10 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 14  Packet Pg. 28 of 1138  City of Palo Alto  Records Retention Schedule  City Clerk’s Office  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  ADMINISTRATIVE RECORDS                                                   100   a) Budget  b) Purchase Orders  c) Domestic Partnership  Affidavits & Statements  C+2  C+2  PER  GC 34090.7 Duplicate of ASD   101  FINANCIAL DOCUMENTS  EXTERNAL VENDORS –  a) Contracts awarded by City  Clerk Department, except  construction b) Contracts awarded by City  Council, except construction c) City Clerk Purchase Orders  d) Construction contracts  awarded by City Council        C+2  TER+4      TER+4    C+2  PERM  PAMC 2.08.110; CCP 337 PAMC 2.08.110; CCP 337   City Clerk Purchase Orders  duplicate of ASD   102 General Correspondence C+2 GC 34090     103 LEGAL ADVERTISING C+4  CCP 337;  54960.1(c)(1);  CCP 343, 349 et  seq.;   GC 911.2  Includes public hearing notices,  legal publications   104  PUBLIC RECORDS REQUESTS   – Requests, responses, and  log  TERCL+2 GC 34090 TERCL = Resolution Date  ADMINISTRATIVE HEARING RECORDS           105 Administrative Citations C+5 GC 34090 Noise, Animal   106 Alarm and Parking Ticket  Aappeal Hearings CTER+2 GC 34090 Includes Initial Review  document   107 Animal Bite Hearings C+15 GC 34090     108 Other Administrative  Hearings C+5  GC 34090GC  34090   Public Works and Community  Services Department hearings   109 Parking Citation Adjudications  (Request for Initial Review) CTER+2  GC 34090 GC  34090  Department  OpinionDepartment opinion   110 Utility User Tax Hearings C+10 GC 34090     ELECTIONS/POLITICAL REFORM ACT           111 AB1234 ETHICS TRAINING –  Proof of training attendance C+5 GC 53235.2(2)b     112 BALLOTS  TER+1 EC 17302,  17304, 17306;   RESTRICTED ACCESS   TER = date of election  Department Opinion 8/14  113   CAMPAIGN DISCLOSURE  STATEMENTS‐  a) Elected Members & Log of  Filers (paper)(paper), their  Controlled Committees, and  committees supporting such  officeholders and candidates       PER          PAMC 2.08.110    GC 81009  (ab)(g)  (b)(g)    GC 81009(g) ‐– After two years  on file, an electronic copy of  the statement may be  put on a  space saving device retained  and originals discarded (GC  81009(g))    Page 11 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 15  Packet Pg. 29 of 1138  City of Palo Alto  Records Retention Schedule  City Clerk’s Office  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  b) Non‐elected candidates  members (paper), committee  supporting non‐elected  candidates   c) Others ‐‐ Committees,  Supporting/Opposing  Measures (paper), General  Purpose, Independent  expenditure, major donor  committees   d) Copies received (e.g. Form  410)(paper)  e) Electronically filed  C+5        C+7            C+4    C+10PER      GC 81009(b)        GC 81009(c)            GC 81009(f)    GC 84615(i)                               Original electronic form must  be kept for at least 10 years      114 CONFLICT OF INTEREST CODE PER  C +4  PAMC 2.08.110 Code is Adopted by Resolution,  Resolution is Permanent   115  FPPC AGENCY FORMS  a) Gift to Agency Report ‐‐  Form 801  Behested Payment Report ‐‐  Form 803  c) 804 New Positions ‐‐ Form  804  d) Consultants ‐‐ Form 805  e) Public Official   Appointments ‐‐ Form 806    C+7    C+7    CS+4    C+4    C+2    FPPC 18944    GC 82015    FPPC 18734    FPPC 18734  FPPC  18705.5GC  34090  Current on Agency Website  FPPC Retention            Current on Agency City  Website   116  NOMINATION  PAPERSCANDIDATES  a) Elected  b) Non‐elected  PERTER+4 TER+2  EC 17100    Department Opinion 6/2014  Non‐elected TER = Certif. of  elections results date or failure  date Term of office or failure  date  Unless requested per EC  17100(b)   117  PETITIONS, INITIATIVES,  REFERENDUM, RECALL &  CHARTER AMENDMENTS   Petition  TER+1  PERMTER+8  months  EC 17200 EC 17400  (Recall  petitions) GC 6253.5.  7924.100‐ 7924.110 (PRA  reference)    RESTRICTED ACCESS  TER = date of election result  certification Department Opinion 8/14  Certain records may be kept for  historical/reference purposes  Department Opinion 1/25 ‐  historical/reference value  Page 12 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 16  Packet Pg. 30 of 1138  City of Palo Alto  Records Retention Schedule  City Clerk’s Office  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  PA Charter  Articles VI and  IX  117b Certification of Election  Results C+10 EC 15372    118 SAMPLE BALLOT PER GC 34090      119  STATEMENT OF ECONOMIC  INTEREST – Form 700  (Designated Filers) & Log of  Filers  C+7 GC 81009(e)‐(g)  Originals retained C+7  Copies retained C+4 "Wet"  paper filed forms can be  digitized after 2 years   120  STATEMENT OF ECONOMIC  INTEREST – Form 700 (GC  87200 Filers) & Log of Filers  C+4 GC 81009(d)‐(g)  Originals forwarded to State.  Copies retained C +4  GC 87200 Filers include City  Council Members, the City  Attorney, City Manager,  Planning Commissioners, and  the Administrative Services  Director (CFO)  LEGISLATIVE HISTORY          121  BOARDS & COMMISSIONS  a) Applications &  Appointments     I. Appointed     II. Not Appointed  b) Letters of Appointment  c) Notices of Termination  d) Oaths of Office  e) Recruitment Outreach  f) General Correspondence  g) BCC Handbook        TER+5  CL+2  TER+2  TER+2  TER+6  TER+2  C+2  S   GC 34090a; GC 40801  TER = Leaving Office date  CL = Close of recruitment  TER = Leaving Office date  TER = Leaving Office date   122 CITY COUNCIL ROSTER PER    Department Opinion  Paper C+2   123  COUNCIL & STANDING  COMMITTEES MEETINGS a) Agenda Packets ‐‐ Docs.  and information submitted to  Council including questions  and answers to Council  agenda items cb) Agendas cb) Minutes cd) DVDs/Recordings ed) Proof of Agenda Posting    PER  C+2          PER   PER  PER  C+2      GC 34090;  GC 40801  54960.1(c)(1)    GC 34090  Department Opinion Department Opinion 2025  Agenda Packets not PER before  2024 Department Opinion 10/14   124  COUNCIL MEMBER –   b) Biographies  c) Photos  d) Emergency Standby Council  Oaths of Office and Report  PER  PER  PER    Department Opinion 10/14  Page 13 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 17  Packet Pg. 31 of 1138  City of Palo Alto  Records Retention Schedule  City Clerk’s Office  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede   125 OATHS OF OFFICE  a) Elected Council Member  TER+2 6  PER   GC 34090;   29 USC 1113    Department Opinion  TER = Leaving Office date  Department Opinion 8/14   126 ORDINANCES PER GC 34090;   PAMC 2.08.110     127 PROCLAMATIONS C+2 GC 34090      128 RESOLUTIONS PER GC 34090;   PAMC 2.08.110    128a MUNICIPAL CODE PER GC 34090 Added in 2025    129  RECORDS & INFORMATION  MANAGEMENT‐  a) Retention Schedules &  Manuals  b) Destruction Certificates  c) Transfer Lists  d) Inventory Database      SC+4    PER  C+2 PER  SC+2     CCP 343    GC 34090  GC 34090        Department Opinion 8/14    Department Opinion  Record of on/off‐site records   130  STATE OF THE CITY ADDRESS  ‐ DVD/recording and Speech  Hard Copy  PER   GC 34090 Department Opinion 8/14  REAL PROPERTY          131  ANNEXATIONS/ACQUISITIONS PER GC 34090a     132 ASSESSMENTS PERTER+2   Department Opinion   133  BINDING INSTRUMENTS a) Land ‐‐ Deeds, Easements,  Record of Land Use Action  b) Easements, Vacations,  Leases & Purchases c) Encroachments,  Agreements & Conveyances d) Community Development  Block Grants (CDBG)    i. Deeds of Trust    ii. Promissory Notes     iii. Agreements  e) Certificates of Compliance.  f) Real Property Agreements,  i.e. Regulatory Agreements,  Declaration of Restrictive  Covenants, Occupancy, Land  Use, and Development  Restriction Agreements   a) PER    b) PER    c)PER    d)TER+6  TER        e) PER  f) PER         GC 340 90a  Department Opinion  Duplicate of County Recorder    TER = paid in full  TER = paid in full            134 BONDS While Useful  TER+10  GC 34090  CCP 337.5  Duplicate of County Recorder   135 DEEDS OF TRUST TER+6 CCP 336a      136 LIENS, CONDEMNATION PER GC 34090a      137 SUBDIVIDER AGREEMENTS PER GC 65864 &  65869.5    Page 14 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 18  Packet Pg. 32 of 1138  City of Palo Alto  Records Retention Schedule  City Clerk’s Office  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  SUBJECT FILES          138 CABLE TELEVISION –  Franchise & Licenses PER GC 34090 City Attorney Opinion 9/87   139 CEQA POSTINGS C+2 PRC 21152 (c)  GC 34090    140  CIVIL GRAND JURY REPORTS PER CPC 933     141 CLAIMS AGAINST THE CITY C+52 PAMC 2.28.230  & 2.28.240   Duplicate of City Attorney   142 FLOOD BASIN PER GC 34090 City Attorney Opinion 9/87   143  NORTHERN CALIFORNIA  POWER AGENCY –  Agreements including  Transmission Agency of  Northern California  PER PAMC 2.08.110 City Attorney Opinion 9/87   144 PAC BELL/PG&E PER GC 34090 Department Opinion 1992  145 POLICE AUDITOR REPORTS PER GC 34090 Department Opinion 4/2015  146  POLICIES  (a) Administrative Policies  (ab) Council Policies    C+2  SUP+2  GC 34090    147  STANFORD (Including Sand  Hill Road, Willow Rd.  Extension)  PER PAMC 2.08.110 City Attorney Opinion 9/87   148  SUBJECT FILES – All subject  files included, unless  specifically set forth  elsewhere.  C+2  GC 34090  Confidential Legal Opinions are  not public information and are  restricted from public access.   149 WATER RIGHTS – Agreements  and Clean Up PER GC 34090 City Attorney Opinion 1995   150 YACHT HARBOR PER PAMC 2.08.110 City Attorney Opinion 9/87    SISTER CITIES  C+2 GC 34090  Department Opinion 8/14    Page 15 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 19  Packet Pg. 33 of 1138  City of Palo Alto  Records Retention Schedule  City Manager’s Office  Series Description Total  Retention  Statutory  Reference  Remarks    C = Current Year   PER = Permanent   TER = Termination    S = Supersede  ADMINISTRATIVE RECORDS         001  Personnel Information,  Budget Information, Records  Retention Schedule  While  useful   Duplicate records of  other departments  002  Staff Reports CMRs (City  Manager Reports) – including  supporting documents  PER GC34090.5  May be scanned to CD  after 5 years and paper  copy offered to the  Historical Society   003  Economic Development Files  for Projects throughout City of  PA  PER    May be stored off‐site    Sister Cities C+2 GC 34090    LEGISLATIVE HISTORY          004 Legislative Letters C+5     Consistent with State  Legislation – Reviews  and Changes  SUBJECT FILES          005  Files established pertaining to  various subjects, Project files,  Chronological Files  C+2 GC 34090     POLICIES AND PROCEDURES          006 Official copies of all City  Policies and procedures  PERS    Each department should  have a current copy of  the Policies &  Procedures  TRANSPORTATION  TRANSPORTATION‐ BICYCLES         016  a) Bike Boulevard PER GC 34090 Unique project,  historical significance,  model for other  jurisdictions in and out  of U.S.    b) Bike Counts C+5 GC 34090      c) Bike Facilities, Lockers/  and Racks  C+2 GC 34090       d) Bike Locker Rental  Program  C+2 GC 34090        e) Bike Operations  (signing/striping, signal  detection), paths, Routes  and Trails  C+2 GC 34090       f) Pedestrian and Bicycle  Advisory Committee  C+5 GC 34090 Department Opinion  017 FUNDING‐Fuel Efficient  Traffic Signal Management PER    GC 34090    Page 16 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 20  Packet Pg. 34 of 1138  City of Palo Alto  Records Retention Schedule  C = Current Year  PER = Permanent  TER = Termination   S = Supersede  Program (FETSIM)  Applications, Prop 116  Applications, Surface  Transportation Program  (STDP)/Congestion  Mitigation and Air Quality  (CMAQ)Applications and  Transportation  Development Act (TDA)  Article 3 Applications  24 CFR  200.334   24 CFR  570.502  29 CFR  97.42  018 NEIGHBORHOOD STUDIES C+2    Department Opinion  PARKING       019  a) Assessment Districts PER  Multiple Depts Opinion     b) Carpool/Vanpool  Program C+2 GC 34090      c) Facilities(garages/lots) PER GC 34090 Department Opinion    d) Permit  Policy/Management CS+2   Department Opinion    e) Residential Permit  Parking C+2        f) Structures PER   Department Opinion    g) Surveys C+2        h) Zones C+2   Department Opinion    i) Congestion Pricing C+5    Department Opinion  020  PERMITS/TRAFFIC  CONTROL‐Certificates of  Insurance and Traffic  Control Plans  C+2 GC 34090    TRAFFIC REFERENCE  021  a) Bike‐correspondence,  other jurisdiction bike plans,  safety/education  C+2 GC 34090  Department  Opinion/Online  Reference    b) Demographic Data PER     Department Opinion    c) Traffic Flow Maps C+5 GC 34090    022 REGIONAL AGENCIES C+2 GC 34090     023 SCHOOL SAFETY C+2 GC 34090    024 TRAFFIC STUDIES C+5 GC 34090   Department Opinion     a) Traffic Calming C+2       b) Traffic Signals C+2       c) Other Traffic Studies C+2      025  Traffic Operations Accidents  (high accident  location/accident data and  reports)  C+2 GC 34090    026 Plans PER H&S 19850     Page 17 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 21  Packet Pg. 35 of 1138  City of Palo Alto  Records Retention Schedule  Community Services Department  Series Description Total  Retention  Statutory  Reference  Remarks  C = Current Year  PER = Permanent  TER = Termination   S = Supersede  ADMINISTRATIVE SERVICES        1 Personnel – Current Employees Performance  Reviews & Work Schedules C+2      2 Security Documents, Work Orders,  Correspondence Inventories, Logs & Reports C+2 GC 34090   3 Policy – Policies, Procedures & Forms SC CA Opinion   4  Other Departments –   a) Stores Req,   b)Purchase Orders,  c) Contracts & Records Retention Schedule  C +2  TER+3  TER+3  TER+4       5 Volunteer Records C+2 GC 34090   6  Accounting – Sales Receipts, Deposits, Sales  Logs, Ledgers, Fees/Fines, Contracts Under  $25,000, Bills & Transit Books  C+2 Community  Services Opinion    ARTS & SCIENCES DIVISION         7 Art Loan Program C+2 GC 34090   8 Theatre Records – Costume & Prop Loans and  Booth Level Settings C+2 GC 34090   9 Art Collection C +2 Community  Services Opinion    10  Public Art Commission –  a) Action Agenda  ab) Proof of PublicationPosting   bc) Minutes of all meetings  cd) General Correspondence  de) Proof of Agenda Posting    PERC+2  C+2  PER  C+2  C+2  Community  Services Opinion  Agendas  Duplicates of  City Clerk  11 Exhibits – Junior Museum & Baylands  Interpretive Center PER Community  Services Opinion    12 Animal Permits – Junior Museum & Zoo TER+2  Fish & Game  Sections 3200,  3204    HUMAN SERVICES & CUBBERLEY DIVISION       Human Relations Commission –  a) Action Agendas and Packets  b) Proof of Publication  c) Minutes of all meetings  d) General Correspondence  e) Proof of Agenda Posting    PERC+2  C+2  PER  C+2  C+2  GC 34090  Agendas  Duplicates of  City Clerk  RECREATION AND GOLF DIVISION        20  Use Permits – Fields, Parks, Courts, Certificates  of Insurance, Facilities Applications & Logs and  Group Agreements  C+2 GC 34090    21 Waivers, Cancellation/Transfer Forms C+2 GC 34090   22 Recreation Foundation – Minutes,  Correspondence & Financial Information C+21     Page 18 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 22  Packet Pg. 36 of 1138  City of Palo Alto  Records Retention Schedule  Community Services Department  Series Description Total  Retention  Statutory  Reference  Remarks  C = Current Year  PER = Permanent  TER = Termination   S = Supersede     Parks & Recreation Commission ‐  a) Action Agenda  ab) Proof of PublicationPosting  bc) Minutes of all meetings  cd) General Correspondence  de) Proof of Agenda Posting    PER C+2  C+2  PER  C+2  C+2  GC 34090  Agendas  Duplicate of  City Clerk     Fee Reduction Program C+2 Department  Opinion 2024     ANIMAL SERVICES  23 Veterinary Medical Records – all records  relating to animal inventory and care TER+3  BP 4081  FAC 32003€  PC 597.1(d)  Previously in  Police Dept.  retention  schedule.  Retained by  contractor  Pets in Need                    Page 19 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 23  Packet Pg. 37 of 1138  City of Palo Alto  Records Retention Schedule  Development Center    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  Series Description Total Retention Statutory  Reference  Remarks  Note: Development Center Retention Schedule merged into Planning & Development Center  Retention Schedule.  ADMINISTRATIVE RECORDS        1  OTHER DEPARTMENTS  Personnel Records, Safety Files, Purchase  Orders, Payment Claim Vouchers, City  Manager’s Reports, Legislation, Litigation,  Final Budget, Equipment and Facility  Maintenance, Time Sheets, Correspondence  with Other Departments and Retention  Schedules  While Useful GC 34090  Duplicate of  other  Departments  2  DEPARTMENT ADMINISTRATION  C+2 GC 34090    Daily Deposit Copies, Department  Procedures, Equipment, Inventories, Budget  Preparation, and Final Budget  Correspondence  3  CONTRACTS  a) Contracts under $85,000 plus all records  associated  b) Full Cost Recover Contracts  c) Contracts over $85,000 plus all records  associated    C+2TER + 4  Until  CompletionTER +4  C+2TER +4  PAMC 2.30.075  CCP 337.2   CCP 343   GC 34090    Duplicate of  Administrative  Services    City Council  approved  contracts  Dduplicate of  City Clerk  004 PERMIT RECORDS Address changes, Permit applications,  Building Use & Occupancy applications and certificates, Department correspondence.  PER GC 34090 Electronically  Stored in  Geographic  Information  System (GIS)  or Accela  005 INSPECTION RECORDS  Survey letters, Special inspection  – final inspection reports, SB407 certificate  of compliance forms, Stop work  correspondence.  PER GC 34090    006 Plans PER H&S 19850    7 CODE ENFORCEMENT   Complaints, inspections, photographs,  violations, reports, correction notices,  citations  CTER+2 GC 34090   Page 20 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 24  Packet Pg. 38 of 1138  City of Palo Alto  Records Retention Schedule  Fire Department  Series Description     Total Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  ADMINISTRATIVE RECORDS         1 DEPARTMENT  MANAGEMENT  C+2 GC 34090        General Order, Special      Orders, Bulletins While Useful    Department Opinion  Policies and  Procedures  SUP+6   GC 34090  45 CFR Part 164.530      Memorandum of  Agreements  While  UsefulTER+4    Duplicate of People Strategy  and Operations (PSO)Human  Resources (HR)   General  Correspondence C+2 GC 34090   001(a)  Code Books,  Ordinances PER GC 34090(e)  California Fire Code, Ordinances  duplicate of City Clerk PAMC  amendments, etc.  2 DEPARTMENT PLANS PER          Strategic Plans/Master  Planning Documents While UsefulS+2      3  GENERAL  CORRESPONDENCE &  REPORTS  C+ 2 GC 34090        Correspondence,  memos, emails, press  releases  While UsefulC+2  GC 34090       Committee reports,  minutes, public file  review requests  While Useful      Duplicate of City Clerk     Special studies,  community relations While Useful        4 BIDS‐UNACCEPTED While Useful    Duplicate of Purchasing  5 OTHER DEPARTMENTS While Useful    Duplicate of Other  Departments     Staffing roster,  timecards, leave  reports  While Useful    Duplicate of Administrative  Services (ASD)     Contracts and  accounting reports,  purchase orders,  deposits, receipts  While  UsefulTER+4  CCP 337  CCP 337.15   Duplicate of ASD; Council  approved contracts duplicate of  City Clerk and City Clerk    Records retention  schedule SUP   Duplicate of City Clerk  6 EMPLOYEE FILES          006(a) Training  records,  certificates C+ 2  GC 34090 Duplicate of HRPSO  006(b)  Employee records While Useful    Duplicate of PSOHR  006(c) DMV Driver Tests and  records C+ 2 GC 34090 Duplicate of PSOHR  Page 21 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 25  Packet Pg. 39 of 1138  City of Palo Alto  Records Retention Schedule  Fire Department  Series Description     Total Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  7 EMPLOYEE  INJURY/EXPOSURE While Useful    Duplicate of PSOHR    Employee accident and  exposure reports PER 29CFR1910.1020   Department Opinion    Individual and  summary statistics PER      SUBJECT FILES           FIRE PREVENTION         8  FIRE PREVENTION:  Code Enforcement  actions  TERCL+5 CFC 104.6      Site Plans While Useful          Requests for service,  complaints. C+2           Sprinkler system & Fire  Alarm periodic testing  reports & inspections  C+6  Electronic   5 Year tests: Keep C+6  Stored by 3rd Party Vendor  008(a) FIRE INVESTIGATION  REPORTS & PHOTOS TERCL+ 6 CFC 104.6.2 104.3.2; PC 801  TER= T+for as long as the  structure or activity to which  such records relate remains in  existence   008(b)  FIRE/HOMICIDE  INVESTIGATION  REPORTS & PHOTOS  PER PC 799 C+6 onsite; PER offsite  008(c) ARSON /JUVENILE  FIRESETTER SUSPECTS CLC+ 6 CFC 104.6104.3.2;  PC 801  Include interviews,  documentation and classroom  materials for junior firesetters  9 ANNUAL FIRE (CFC)  PERMITS C+ 2 GC 34090    10 STREET & NUMBER  ASSIGNMENT While Useful CFC 103.3.4  PAMC 16.36.030  Duplicate of Planning and  Community  EnvironmentDevelopment  Services  11  FIRE INSPECTIONS  (Bureau and Engine  Company inspections)  CLTER+ 6 CFC 104.6.2103.3.4  Department Opinion  CFC 103.3.4 requires CL+3  However, longer period desired  due to 3 year inspection cycle  for some facilities     Records of Inspection;  routine, special, new  construction & tenant  improvement‐related.   PER   CFC 104.6.2 Electronically stored in Accela  Pre‐Citation Letters,  Notice of Violation  letters.  While UsefulC+2   GC 34090   12 CERTIFICATIONS   GC 34090       Flame Resistance PER    Electronically stored in Accela  Page 22 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 26  Packet Pg. 40 of 1138  City of Palo Alto  Records Retention Schedule  Fire Department  Series Description     Total Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  Use and Occupancy  Certificate PER    Electronically stored in Accela  13  SPRINKLERS & FIRE  SUPPRESSION  SYSTEMS  Life of Building  (LoB)  GC 34090(a)CFC  104.6  Pertains to real property. May  include blueprints, reports,  inspection results, permits.  Keep 2 years onsite, permanent  offsite     Design, Flow,  Installation documents LoB       Plan review comments LoB        14 BUILDING PROJECTS LoB GC 34090(a)  Pertains to real property. May  include blueprints, reports,  inspection results, permits.  Keep 2 years onsite, permanent  offsite    New Construction &  Tenant Improvement  Projects, including  underground tank  installations and  repairs  PER  Electronic   Electronically stored in Accela    Alternate means and  methods applications PER CFC 104.6.4   2007 CFC 104.6.4   Electronically stored in Accela    Plan review comments PER    Electronically stored in Accela    SUPPRESSION         15 INCIDENTS (fire,  medical, hazmat, etc.) PER   Electronically stored in RMS  015(a) Dispatch and daily logs C+ 2 GC 34090  Release to Union; do not  destroy  015(b) Fire Incident Reports;  all except arson related PER CFC 104.6104.3.2,   PC 801 Electronically stored in RMS  015(c)   Fire Incident and other  Field Reports; arson  related  PER CFC 104.6104.3.2,   PC 801 Electronically stored in RMS  015(d)   Fire Incident and other  Field Reports; arson  with death involved  PER PC 799 Electronically stored in RMS  015(e) Pre‐Hospital Care  Report (PCR) PER 45 CFR Part 164.530 Electronically stored in RMS  16 ENGINE/TRUCK  EQUIPMENT   GC 34090    016(a) Daily & Monthly logs C+ 2 GC 34090     016(c) Maintenance Program. C+ 2 GC 34090     HAZARDOUS MATERIALS          17  ANNUAL HAZARDOUS  MATERIALS STORAGE  PERMIT  CTER+ 2 GC 34090     Page 23 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 27  Packet Pg. 41 of 1138  City of Palo Alto  Records Retention Schedule  Fire Department  Series Description     Total Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  18  CALCULATIONS‐  Seismic and secondary  containment  C+ 2 GC 34090     19  SITE CLEANUP Spill  Reports & facility  closure related  information; related  inspections. Does not  include reports for  activities regulated by  Calif. Regional Water  Resources Control  Board or Calif Dept of  Toxic Substances.  PER GC 34090(a)  Pertains to real property.  Previous retention was 30  years‐OHSA Guideline cited no  specific document reference.  Electronically stored in  California Environmental  Reporting Service (CERS)  20  HAZARDOUS  MATERIALS &  UNDERGROUND TANK  INSPECTIONS, routine,  special, and  enforcement related  CL + 6 CCR 27, 15188  Department Opinion  C+5 Required. Keep additional  time for consistency with other  inspection records.   Electronically stored in CERS  21  HAZARDOUS  MATERIALS BUSINESS  PLANS  C+ 2 GC 34090 Electronically stored in CERS  UNDERGROUND TANKS         22(a)  UST closures and/or  removals and related  documentation. Does  not include reports for  activities regulated by  Calif. Regional Water  Resources Control  Board or Calif. Dept of  Toxic Substances.  PER GC  34090(a)  Pertains to real property. May  include blueprints, reports,  inspection results, permits  Electroniccally stored in CERS  022(b)  Periodic testing,  monitoring and special  reports  C+ 2 GC 34090 Electronically stored in CERS  PROGRAMS          23  SPECIAL PROGRAMS:  Strike teams and  mutual aid response  C+12  GC 34090  Existing Department Opinion is  C+12. Note that GC 34090  requires only C+2  23 (a)  Disaster Service  Worker:  All associated  documents  TER + 30 CCR 19, 2573.2,   GC 3105, 6250 Required for injury Claims  24 PARAMEDICS: Training  and testing C+ 4  CCR 22, Div 9, sec  100101100392  Retained by Human Resources?  (TER+3, 29 CFR 1627.3)    PCR – see Suppression          Page 24 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 28  Packet Pg. 42 of 1138  City of Palo Alto  Records Retention Schedule  Human Resources  Series Description Total  Retention  Statutory Reference Remarks  C = Current Year  PER = Permanent  TER = Termination   S = Supersede  ADMINISTRATIVE RECORDS         1  GENERAL – Correspondence,  Timecards, Contracts, Subject  Files, Budgets, Projects , and  Records Retention Schedule*  C+2 GC 34090 Duplicate of City Clerk and  Administrative Services  2 STANDARDS – Policies, Rules,  Bills, & Regulations C+2 GC 34090     EMPLOYMENT          4  RECRUITMENT – Applications,  Resumes, Alternate Lists,  Testing  C+3  492 USC Sections  2000e‐8; 2000c‐12;  29 CFR Section  1602.12 and 1602.14   Restricted Access  5 PERSONNEL FILES  (a) Regular  Employees TER+15  29 CFR Section  1627.3   Labor RelationsCode   Section 1174   Access may digitally store after  2 years and shred  Restricted Access     PERSONNEL FILES (b) Water  Quality Control Plant ‐‐ Senior  Chemist, Chemist, Laboratory  Tech, Senior Industrial Waste  Investigator, Industrial Waste  Investigator, Senior Mechanic,  Mechanic, Senior Operator,  WQC Plant Operators I/II,  Industrial Waste Inspectors,  Electricians, Supervisor, WQCP  Operations, Manager/Assistant  Manager, WQCP, and Manager,   TER+30  29 CFR  1910.1020;  Cal OSHA 8 Cal  Code Regs 3204  Access may digitally store after  2 years and shred  Restricted Access  *There may be other  employees in safety‐sensitive  position in other locations with  same extended retention  schedule  5 PERSONNEL FILES (c) Hourly  Employees TER+5  29 CFR Section  1627.3 Labor  Relations   Labor Code Section  Section 1174   Access may digitally store after  2 years and shred   Restricted access  6 RETIREMENT – Public Employee  Retirement System TER+4  29 USC Sections  1001 – 1381  29 CFR Section  1627.3  Restricted Access  7  CLASSIFICATION: Requests for  reclassification, PDQ's, Job  Descriptions, Desk Audits  C+32 Labor Code Section  1197.5(de)  PDQ = Position Description  Questionnaire   BENEFITS          8  EMPLOYEE BENEFIT FILES ‐  DCCAP (dependent care),  Deferred Comp, Dental, EAP,  Life, Medical, Vision/LTD Claim  Applications, Leave, Domestic  Partner Reimbursement  C+4 29 CFR Section  1627.3  Restricted Access  DCAP = Dependent Care  Assistance Program   EAP = Employee Assistance  Program  LTD = Long Term Disability  Page 25 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 29  Packet Pg. 43 of 1138  City of Palo Alto  Records Retention Schedule  Human Resources  Series Description Total  Retention  Statutory Reference Remarks  C = Current Year  PER = Permanent  TER = Termination   S = Supersede  9  FPPC AGENCY FORMS  a) 804 New Positions ‐‐ Form  804  b) Consultants ‐‐ Form 805  C+4    C+4  FPPC 18734  FPPC 18734 Duplicate of City Clerk  RISK MANAGEMENT/WORKERS' COMP          10 WORKERS COMPENSATION  Claim Files  TER+5 (if  claim is  active)PER   Labor Code Section  5410   8 CCR 3204(d)(1)  8 CCR 10102  GC 12946   Files are held at Administrator’s  Office, City only keeps working  file   Restricted Access  11  Authority for California Cities  Excess Liability (ACCEL) JPA  Agenda Files  C+3    Department Opinion  12  DMV Employer Pull Notice  Program ReportsDMV – Pull  Notices  C+4 (only  if  employee  has  violation  on record)    Department Opinion   Restricted Access  13 DRUG TESTING C+5  49 CFR Section 193‐9  DOT 49 CFR Part 40  Subpart P Sect  40.333; 49 CFR  40.333 and Sect  40.25  Restricted Access  14  SAFETY REPORTS a) Investigation Reports b) Hearing Tests  PER  TER+5  C+4  8 CCR 3203(b)(1)‐(2),  8 CCR 3203(c)(2),  FC 406.2  Department Opinion     INSURANCE (a) Insurance bond policies (b) Insurance certificates     TER+10  PER     CCP 337.2; 343  GC 34090        INFECTIOUS DISEASE &  OCCUPATION EXPOSURE FILES PER  29CFR 1910.1030(h);  29 CFR 1910.1020;   8CCR3204(d)(1)(B)       OCCUPATIONAL MEDICAL TEST TER+5  FMLA 1993 US OSHA;  29 CFR  1910.1020; 29 CFR  1602.30‐  1602.32; OSHA;  8CCR5100(d)(2)OSHA     Page 26 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 30  Packet Pg. 44 of 1138  City of Palo Alto  Records Retention Schedule  Human Resources  Series Description Total  Retention  Statutory Reference Remarks  C = Current Year  PER = Permanent  TER = Termination  S = Supersede  LEAVE ‐ DISABILITY TER+5  FMLA 1993 US OSHA;  29 CFR  1910.1020; 29 CFR  1602.30‐  1602.32; OSHA  8CCR5100(d)(2)OSHA  Accident, Incident, and Injury  Reports PER  8 CCR 10102  GC 12946  HUMAN RESOURCES DEVELOPMENT 16  TRAINING – Program Lists,  Instructor Lists, Class Rosters, &  Evaluations  C+2 49 CFR 199.17  49 CFR 199.227  Department Opinion  EMPLOYEE RELATIONS  17  NEGOTIATIONS – Notes,  Notebooks, Correspondence,  Contracts, & MOA  C+10 29 USC Sections 211  (c), 203 (m), 207 (g) Restricted Access  18  COMPENSATION – Mgmt.  Salary History Sheets, Job  Descriptions, Salary Surveys,  Compensation Plans  C+7 Department Opinion  19  GRIEVANCES – Arbitration,  Grievances Reports, SEIU  Window Period Requests,  Sexual Harassment &  Discrimination  C+7 29 CFR Section  1602.21 (h) Restricted Access  PERSONNEL MANAGEMENT  21 EMPLOYEE RIGHTS: Safety and  General Employees TER+5 GC 12946, 29 CFR  1602.12  23 CLASSIFICATION AND  COMPENSATION SURVEYS C+2  GC 12946, 34090; 29  CFR 516.6(2); 29 CFR  1602.14  25 LEAVE ‐ MEDICAL TER+5  FMLA 1993 US OSHA;  29 CFR 1910.1020;  29 CFR 1602.30  27 SALARY INFORMATION ‐ Salary  schedule, Salary resolutions PER GC 34090; GC 12946;  29 CFR 516.6(2)  Page 27 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 31  Packet Pg. 45 of 1138  City of Palo Alto  Records Retention Schedule  Information Technology  Series Description Total  Retention  Statutory  Reference  Remarks  C = Current Year  PER = Permanent  TER = Termination   S = Supersede ADMINISTRATIVE RECORDS         001  a) Budget    b) Purchase Orders  C+2    C+2  GC  34090.7  Duplicate of Administrative  Services (ASD)  Duplicate of ASD  001 Subject files, general  correspondence,  C+2 GC 34090   SUBJECT FILES         002 Phone Log Files C+2 GC 34090 Call records  003 Service Desk Tickets C+2 GC 34090 IT Service Desk Tickets  004 Financial System Data  Backup C+7  GC  34090 SAP Database Backups  005  Contracts  a) Under $5000  b) $5000 and over  c) $85000 and over    TER+43  TER+43  TER+43   CCP 37.2   CCP 343   GC 34090  Duplicate of ASD  City Council approved contracts  Dduplicate of City Clerk  006 Hardware and software  inventories S+2 GC 34090  Running inventories of hardware  and software used to track   locations, to whom assigned,  and licensing information, as  needed            Page 28 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 32  Packet Pg. 46 of 1138  City of Palo Alto  Records Retention Schedule  Library   Series Description Total  Retention  Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination  S = Supersede  ADMINISTRATIVE RECORDS  Department Administration  Work Schedules, Volunteer  Records, Budget Preparation,  Surveys, Statistics, Projects, Staff  Reports, Org Chart,  Memberships, Legal Opinion,  Staff Development and Training,  Community Relations, Benchmark  Data  C+2 GC 34090 Standards  Department Policies and  Procedures, Strategic Plan,  Safety/Security Manual, Disaster  Plan  Until  SupersededS GC 34090 General Correspondence &  Reports  Correspondence, Memos, Emails,  Press Releases, Committee  Reports, Meeting Notes, Working  Files  C+2 GC 34090  Email messages related to  a current project or a  policy‐making decision  should be retained along  with related records  Other Departments  Staffing Roster, Timecards, Leave  Requests, Contracts,  Amendments, Purchase Orders,  Change Orders, Invoices, Travel,  Final Budget, Fines and Fees  Scheule, Library Bond Measures,  Building Plans, Deposits, Cash  Receipts, Information Technology  Management Records, Records  Retention Schedule  While useful GC 34090 Duplicate of other  departments  Employee Files (Regular & Hourly)  PAFs, Appraisals, Work Injury, Job  Descriptions, Requests for  Reclassificiation, Recruitment ‐‐  applications, resumes,  While useful Duplicate of HRPeople  Strategy and Operations  LEGISLATIVE HISTORY  Library Advisory Commission  a)Agenda b)Proof of Publication c)Minutes of Meetings d)General Correspondence e)Proof of Agenda Posting C+2PER  C+2  PER  C+2  C+2  GC 34090  If posted by Library  StaffLibrary Advisory  Commission dissolved in  2020.   SUBJECT FILES  Library Databases  Customers, Circulation and  CS+2   GC 34090  Patron use Registration  and circulation records are  exempt from Public  Page 29 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 33  Packet Pg. 47 of 1138  City of Palo Alto  Records Retention Schedule  Library   Series Description Total  Retention  Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  Inventory  Subscriptions and Licenses  Records Act under certain  conditions; GC 7927.105,  GC7927.100GC6254, GC  6254.5, GC6255, GC6267    Grants & Donations  Applications  Awards  Non‐monetary Donations  Reimbursements  C+5   GC 34090  24 CFR 200.334   24 CFR 570.502  29 CFR 97.42  Department Opinion     Capital Improvements  Project Files, Specifications,  Contracts, Agreements,  Equipment, Maintenance,  Licenses, Inventory  Life of  building GC 34090   Duplicate of Public Works  City Council approved  contracts duplicate of City  Clerk     Publicity/Publications  Promotional Materials C+2 GC 34090       State Library  Public Library Survey  Reimbursements  C+2   GC 34090      Operational Reports  Daily Log, Cash Handling, Bank  Deposits, Debt Collection  Management  Incident Reports    C+2      C+5   GC 34090     Public Programming  Development and Administration  of Programs for the Public  (children, students, adults)  C+2 GC 34090       Collection Development Records    Records documenting the  selection and acquisition of new  materials for the Library's  collections and the physical  movement of materials between  the facilities and storage areas  C+2 GC 34090       Collection Movement Records  Records documenting the physical  movement of materials between  the facilities and storage areas  C+2          Historical Reference  History of Palo Alto City Library PER   GC 34090 Department Opinion        Page 30 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 34  Packet Pg. 48 of 1138  City of Palo Alto  Records Retention Schedule  Office of Emergency Services  Series Description Total  Retention  Statutory  Reference  Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  ADMINISTRATIVE RECORDS         1 DEPARTMENT MANAGEMENT         General Order, Special Orders,  Bulletins, Policies and Procedures S   GC 34090      Employment Memorandum of  Agreements  While  Useful GC 34090  Duplicate of Human Resources Peope  Strategy and Operations (PSO)  2 DEPARTMENT PLANS PER    Department Opinion    Strategic Plans/ Master Planning  Documents C+2 GC 34090     3 GENERAL CORRESPONDENCE &  REPORTS C+2 GC 34090       Correspondence, memos, emails,  press releases         Committee reports, minutes,  public file review requests           Special studies, community  relations        003c  Budgets, Purchase Order's Time  Keeping, Correspondence,  Surveys, Statistical Reports  C+5 GC 34090     004h Equipment Records TER+2 GC 34090  Retained until termination of  equipment's use; Manuals,  instructions, procedures, assignments,  maintenance  EMPLOYEE FILES         006(a) Training records, certificates C+2 GC 34090  Duplicate of HR Retained by HR  (TER+3, 29 CFR 1627.3)  006(b) Employee records While  Useful   Retained by HR (TER+3, 29 CFR 1627.3)  SPECIAL PROGRAMS         023(a)  Disaster Service Worker:  Emergency Services Volunteers  All associated documents  TER+30  CCR 19,  2573.2,  GC 3105,  6250  Required for injury claims              Page 31 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 35  Packet Pg. 49 of 1138  City of Palo Alto  Records Retention Schedule  Planning and Development Services  Series Description Total  Retention  Statutory  Reference  Remarks  C = Current Year  PER = Permanent  TER = Termination  S = Supersede  ADMINISTRATION  001  OTHER DEPARTMENTS  Personnel Records, Purchase  Orders, Payment Claim  Vouchers, Legislation, Final  Budget, Correspondence with  Other Departments and  Records Requests  While  Useful GC 34090  Duplicate of Other Departments  002  DEPARTMENT  ADMINISTRATION  Department Procedures,  Equipment, Inventories,  Budget Preparation, and Final  Budget Correspondence,  General Correspondence  C+2 GC 34090   003  CONTRACTS a)Contracts under 85,000 plus all records associated b)Full Cost Recovery Contracts TER+4C+2  TER+4Until  Completion  CCP 337   CCP 343   GC 34090  Department Opinion  004  ADMINISTRATIVE REFERENCE Fee Schedules, Orgs, List,  Ordinance Binder, Planning  Ethics, Data Collection  While  Useful plus  online  archivesS  GC 34090 Department Opinion  LEGISLATIVE HISTORY  5  PLANNING COMMISSION,  ARCHITECTURAL REVIEW  BOARD, AND HISTORIC  RESOURCES BOARD AND  DIRECTOR'S HEARINGS  a)Minutes ‐ Online b)Agendas and Packets‐ Online c)Correspondence with Staff/Public ‐ project based d)Proof of Publication de) Proof of Agenda Posting PER  PERC+2  C+2  C+2  C+2  GC 34090  Video and Audio Tapes are recycled  after 90 days except for  Director's  Hearing ‐‐ 5 years of DVD/CD  Hardcopy format, Boards ‐ Summary.  PTC ‐– Verbatim  Agendas duplicates of City Clerk   SUBJECT FILES 6 COUNTY OF SANTA CLARA While  Useful GC 34090 Duplicate of Santa Clara County  7 BUILDING PLANS GC 34090  a)Approved PER   H&S 19850 Digital Format  b)Superseded C+2 H&S 19850 Hardcopies  Page 32 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 36  Packet Pg. 50 of 1138  City of Palo Alto  Records Retention Schedule  Planning and Development Services  Series Description Total  Retention  Statutory  Reference  Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  8  DISCRETIONARY PLANNING  ENTITLEMENTS a)   Applications b)   Maps ‐ Zoning, Tentative  Subdivision, Preliminary Parcel,  Comp Plan Land Use, et al c)   Permit Extensions  (currently a 2‐yr window with a  1‐yr extension) d)   Record of Land Use Actions e)    CEQA determinations, ‐EIR,  ‐Negative Declarations      PER  PER C+2     PER    PER   GC 34090  Department Opinion  Digital Format (stored offsite)          Digital Format    Saved Within Application files that  are scanned into GIS/DOXview  10 HISTORIC INVENTORY PER GC 34090 Digital Format‐‐Currently updated  via GIST  11 ZONING ORDINANCES PER GC 34090 Duplicate of City Clerk  12  COMPREHENSIVE PLAN AND  AMENDMENTS‐‐ Available  Website reference only  PER GC 34090  Duplicate stored offsite as vital copy  backup w/ Amendments  Resolutions Duplicate of City Clerk   13 COMMUNITY DEVELOPMENT  BLOCK GRANTS (CDBG)   PAMC 2.30     a)       Project Files TER+5 C+2   24 CFR Part  570  2 CFR  200.334  .502  State of California HCD CDBG Grants  Management Manual, Chapter 10  https://www.hcd.ca.gov/grants‐and‐ funding/programs‐ active/community‐development‐ block‐grant     b)       Deeds of Trust and  Promissory Notes   GC 34090 Duplicate of City Clerk  14 COMMUNITY DEVELOPMENT     Human Relations Commission Acts  as Committee    BLOCK GRANTS (CDBG)         b) Program Reference Forms,  Procedures and Brochures C+3      15 HOUSING           a) General Information and  References ‐ Outside Materials  While  Useful   Department Opinion    b) Housing Studies and  Programs C+3 GC 34090      c) HOME Funding‐General (If  individual home loans keep  permanently)  C+3TER+5  GC 34090  24 CFR Part  570  Federal regulation federally funded  programs and labor standard  compliance files    d) Below Market Rate (BMR)  Units, In Lieu Hosing Mitigation PER GC 34090 Department Opinion    e) Below Market Rate  Administration  C+2While  Useful  GC 34090     16 TRANSPORTATION‐BICYCLES   GC 34090   Page 33 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 37  Packet Pg. 51 of 1138  City of Palo Alto  Records Retention Schedule  Planning and Development Services  Series Description Total  Retention  Statutory  Reference  Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede    a)       Bike Boulevard PER    Unique project, historical  significance, model for other  jurisdictions in and out of U.S.    b)        Bike Counts C+5       c)       Bike Facilities, Lockers  and Racks C+2       d)       Bike Locker Rental  Program C+2        e)         Bike Operations  (signing/striping, signal  detection), paths, Routes and  Trails  C+2       f)      Bicycle Advisory  Committee C+5   Department Opinion  17  FUNDING‐Fuel Efficient Traffic  Signal Management  Program(FETSIM) Applications,  Prop 116 Applications, Surface  Transportation  Program(STDP)/Congestion  Mitigation and Air Quality  (CMAQ)Applications and  Transportation Development  Act (TDA) Article 3 Applications  PER     18 NEIGHBORHOOD STUDIES C+2   Department Opinion  19 Parking          a)       Assessment Districts PER       b)       Carpool/Vanpool  Program C+2       c)        Facilities(garages/lots) PER   Department Opinion    d)       Permit  Policy/Management C+2   Department Opinion    e)       Residential Permit  Parking C+2       f)         Structures PER   Department Opinion    g)       Surveys C+2      h)       Zones C+2  Department Opinion    i)     Congestion Pricing C+5 GC 34090 Department Opinion  20  PERMITS/TRAFFIC CONTROL‐ Certificates of Insurance and  Traffic Control Plans  C+2 GC 34090   22 TRAFFIC REFERENCE   GC 34090      a)        Bike‐correspondence,  other jurisdiction bike plans,  safety/education  C+2   Department Opinion/Online  Reference    b)       Demographic Data PER       c)       Traffic Flow Maps C+5     Page 34 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 38  Packet Pg. 52 of 1138  City of Palo Alto  Records Retention Schedule  Planning and Development Services  Series Description Total  Retention  Statutory  Reference  Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  23 REGIONAL AGENCIES C+2    24 SCHOOL SAFETY C+2 GC 34090   25 TRAFFIC STUDIES   GC 34090     a)       Traffic Calming C+5       b)       Traffic Signals     Department Opinion    c)        Other Traffic Studies       26 TRAFFIC OPERATIONS          a)       Accidents (high accident  location/accident data and  reports)  C+2     DEVELOPMENT CENTER ADMINISTRATIVE RECORDS  1  OTHER DEPARTMENTS  Personnel Records, Safety  Files, Purchase Orders,  Payment Claim Vouchers, City  Manager’s Reports,  Legislation, Litigation, Final  Budget, Equipment and  Facility Maintenance, Time  Sheets, Correspondence with  Other Departments and  Retention Schedules  While Useful GC 34090 Duplicate of other Departments  2 DEPARTMENT  ADMINISTRATION C+2 GC 34090      Daily Deposit Copies,  Department Procedures,  Equipment, Inventories,  Budget Preparation, and Final  Budget Correspondence        3  CONTRACTS  a) Contracts under $85,000  plus all records associated  b) Full Cost Recover Contracts  c) Contracts over $85,000 plus  all records associated    C+2TER + 4  Until  CompletionTER  +4  C+2TER +4  PAMC  2.30.075  CCP 337   CCP 343   GC 34090    Duplicate of Administrative  Services    City Council approved contracts  Dduplicate of City Clerk  DEVELOPMENT CENTER SUBJECT FILES  004 PERMIT RECORDS Address changes, Permit  applications, Building Use &  Occupancy applications and certificates, Department  correspondence.  PER GC 34090 Electronically Stored in Geographic  Information System (GIS) or Accela  005 INSPECTION RECORDS  Survey letters, Special  inspection  – final inspection reports,  SB407 certificate of  PER GC 34090    Page 35 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 39  Packet Pg. 53 of 1138  City of Palo Alto  Records Retention Schedule  Planning and Development Services  Series Description Total  Retention  Statutory  Reference  Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  compliance forms, Stop work  correspondence.  006 Plans PER H&S 19850     7 CODE ENFORCEMENT   Complaints, inspections,  photographs, violations,  reports, correction notices,  citations  CTER+2 GC 34090      NOTE: Development Center Retention Schedule merged into Planning & Development Center Retention  Schedule and transportation records merged into City Manager’s Office.    Page 36 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 40  Packet Pg. 54 of 1138  City of Palo Alto  Records Retention Schedule  Police Department  Series Description Total Retention Statutory  Reference  Remarks  C = Current Year  PER = Permanent  TER = Termination  S = Supersede  ADMINISTRATIVE RECORDS  3 (a)Personnel Training SUP GC 34090 Bulletins, training class  certificates   3 (a)(1)  Lesson Plans C+15 GC 34090 Scope, content, time period  of courses   3 (a)(2) Applicant Fingerprint  Files TERM+2 GC 34090  Includes paperwork  authorizing fingerprinting  and background checks for  City employment  applicants, all license and  permit applicants and  volunteer applicants  3 (a)(3)(b) Personnel (copies) TERM+7 GC 34090  Paperwork documenting  officer& non‐ swornProfessional Staff  internal and external  training  3 (b)(1) Applicant Fingerprint  Files TER+3 GC 34090  Includes paperwork  authorizing fingerprinting  and background checks for  City employment  applicants, all license and  permit applicants and  volunteer applicants.  3 (a)(b)(c) Volunteer Files TERM+2 GC 34090 Volunteers’ identification,  contact information   003b Policy, Forms, Brochures TERMC+2 GC 34090  003c  Budgets, PO’s Time Keeping,  Correspondence, Surveys,  Statistical Reports, Contracts  CTER+5 GC 34090  CCP 337  003d Demographic Data Collection  Cards C+2 GC34090 Program ended 6‐30‐2010  003e Alarm Records C+2 GC 34090  Alarm packets, documents  & correspondence, alarm  permit  applications/permits, false  alarm notifications, false  alarm records  001q  Administrative/Internal Affairs  Investigations – Documents  relating to complaints or  investigations in responses to  citizens’ complaints regarding  members of the Department.   a)UnNot sustained b)Sustained C+5 TER + 5   TER+15  PC 832.5(b),  EVC 1045,  PC 801.5,  PC 803(c),   VC 2547  GC 12946  Provided documents are  not evidence in any claim  filed or criminal  investigation, or part of any  pending records request or  litigation exists.  TER = conclusion of  investigation  Page 37 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 41  Packet Pg. 55 of 1138  City of Palo Alto  Records Retention Schedule  Police Department  Series Description Total Retention Statutory  Reference  Remarks  C = Current Year  PER = Permanent  TER = Termination   S = Supersede  001k PressNews Releases  C+2 GC 34090   Website 2 years; moved to  the Investigatory file if  applicable  001k Social Media Content C+2 GC 34090   001t Administrative Citations TERC+25 GC 34090  Noise, Animal,  Parking/Traffic  TER = conclusion of  administrative review  hearing, if held.  001r PAPD Policy Manual SUP GC 34090 Living Document  ANIMAL SERVICES RECORDS         001p  Nuisance Complaints, Animal  Bite Reports and Hearings,  PAMC Violations and warnings  issued.    C+10  GC 34090  PAMC  6.28.030   FAC 32003(e),  31621 ‐ 31626  PAMC = Palo Alto Municipal  Code  001s Veterinary Medical Records  C+3 BP 4081  Move to CSD/PIN  10 Animal Licenses  C+2 GC 34090 Dog – 3 years from  expiration  001n HumaneAnimal Control Officer  – Activity records and logs C+2 GC 34090     001m  Animal Control – All records  relating to animal inventory  and care  C+2 GC 34090  Move to CSD/PIN  COMMUNICATION RECORDS         1  (a) 911 Recordings  (b) Other Phone  Recordings, not on  911 lines  T + 180 days‐  T + 180 days‐  C+2 years and 1 day  GC 34090.6  PC 1054 et seq  Exception: Recordings  used‐ flagged as evidence  in a criminal prosecution or  claim filed or litigation hold  request receivedd or  potential claims and  litigation ‐shall be  preserved for 100 days  after conclusion of the  court action, or as needed.  System programed to re‐ write unless flagged  003f Mobile Audio Video Records  (MAV) C+2 GC 34090.6  PC 1054  Exception: ‐ Recordings  used‐ flagged as evidence  in a criminal prosecution or  claim filed o‐r litigation  hold request received or  potential claims and  litigation shall wbe  preserved for 100 days  after conclusion of the  court action or as needed.    DAR ‐ Digital Audio Recordings C+2‐   Page 38 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 42  Packet Pg. 56 of 1138  City of Palo Alto  Records Retention Schedule  Police Department  Series Description Total Retention Statutory  Reference  Remarks  C = Current Year  PER = Permanent  TER = Termination   S = Supersede  System programmed to re‐ write unless flagged  003g Interior Video Recordings   AIB or ISD when initiated C+12 GC 34090.6  PC 1054  Exception‐: Recordings  flagged used‐ as evidence  in a criminal prosecution or  claim filed or‐ litigation  hold received  or potential‐  claims and litigation shall‐  be preserved for 100 days  after conclusion of the  court action, or as needed  003h Routine Perimeter Security  Video 100 Days GC 34090.6 Automated self‐ recycled/re‐use technology  INVESTIGATIVE RECORDS       001e  Police Reports – ODI (Optical  Document Imaging) System  and supporting hard copy  Reports  PERC+100   GC 34090 Reports scanned into the  ODI system from 6‐15‐92 to  12‐31‐06. Unless report is a  Permanent Record or  ordered Sealed by Court  Order     PC 800    PC 801    PC 799  001f  Non Criminal Police Reports –  Lost/Found Property, Injured  or sick persons; missing  persons where person has  returned; traffic collision  reports not used as the basis  for criminal charges etc.  C+2010 GC 34090  Any CLETS entry must be  canceled prior to purge if  applicable.  Applies to Police Reports  taken prior to 6‐15‐1992  prior to Optical Imagining.      001e Traffic Collision Fatality Reports PERC +20 GC 34090 Regardless of the medium   001e  (1)Police Reports/PDF Scanned  – All Felonies, high  Misdemeanor cases.  PERC +100  PC 800  PC 801  PC 799  (Felony  Capital Crimes  punishable by  Death, Life  Imprisonment )  PC 1054  Starting 2007 Hard Copies  will be kept in conjunction  with PDF Prosecution for an offense  punishable by  imprisonment in state  prison for 8 years or more  must commence within 6  years after offense  commission.   Commencement of  prosecution defined in PC  804.  *Exception:  PC 803 –  Tolling/Extension of time  periods; Appeals process  Page 39 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 43  Packet Pg. 57 of 1138  City of Palo Alto  Records Retention Schedule  Police Department  Series Description Total Retention Statutory  Reference  Remarks  C = Current Year  PER = Permanent  TER = Termination   S = Supersede  and “Three Strikes”‐ also  considerations in assigning  retention‐.   001f  (1)Non Criminal Police  Reports/PDF Scanned –  Lost/Found Property, Injured  or sick persons; missing  persons where person has  returned; traffic collision  reports not used as the basis  for criminal charges etc.   C+150 GC 34090  Starting 2007 Reports will  be scanned to PDF. Any CLETS entry must be  canceled prior to purge if  applicable.  12‐1‐2021 – all reports  scanned as PDF  001v  Arrest/Conviction HS Section  11357 (b), (c), (d), (e) or H&S  Section 11360 (b) violations –  Occurring after January 1, 1996  Mandatory  destruction from  date of conviction or  date of arrest with  no conviction  HS 11361.5  Applicable to convictions  occurring after 1‐1‐1996 or  arrests not followed by a  conviction occurring after  1‐1‐1996;  Exception: H&S  11357(e), the record shall  be retained until a juvenile  offender attains 18 years of  age – then destroyed  pursuant to 11361.5  001l FI Cards – Field interview Cards C+2 GC 34090 Includes photo if taken  001k (1) Daily Bulletins C+2 GC 34090    001e (2) Registrants – Sex, Arson,  Narcotics  PER  TER or until S  DOJ  Guidelines  Fingerprint Card, Photo and  info forwarded to DOJ   001e  (3) Criminal Reports  (Misdemeanor low Felony) and  Domestic Violence Reports  C+15 FC 6228(de) GC 34090  Remove property from  CLETS, no suspect or open  investigations pending.   MISC REPORTS AND DOCUMENTS         004a Court Board  C+12 GC 34090 Court Notices  004b Court Liaison Tracking Systems C+25 GC 34090  Booking/Filing Lists and  Logs, In/Fformal Discovery  requests and  Correspondence. Formal  Discovery scanned to  Investigatory File   004c Subpoenas (Duplicate) C+2 GC 34090  Subpoena Duces Tecum  (SDT) filed with case Report  once completed if  applicable  004d Statistical – Crime Analysis and  other reports C+2 GC 34090  Internally generated  information using activity  logs, citizen calls requests,  and current and past crime  statistics.  Reports created  for a variety of purposes.  Page 40 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 44  Packet Pg. 58 of 1138  City of Palo Alto  Records Retention Schedule  Police Department  Series Description Total Retention Statutory  Reference  Remarks  C = Current Year  PER = Permanent  TER = Termination   S = Supersede  Some original reports sent  to DOJ & FBI   004e  Statistical – UCR (Uniform  Crime Report) LEOKA,  Homicide, Arson, DV, Hate,  Arrest & Citation, Death in  Custody, Crimes against Senior  C+25 GC 34090 Originals to DOJ & FBI  004f Sealed – Adult /Factual  Innocent  Mandatory  Destruction upon  and pursuant to  Court Order  PC 851.8  Unless sealed pursuant to  PC 851.91 and PC 851.92.  Does not include letter of  finding sent to the  defendant for  grants/denials  001j Restraining Orders C or until S     Destroy after law  enforcement actions  described in PC 273.5,  273.6, 646.9, 12028.5,  13700 and Family Code  Sections 6380‐6383 are  fulfilled and effective date  of Restraining Order has  expired  001g  Traffic Citations (copies) *Except Juvenile offender  program graduates – those not  forwarded to court of program  successfully completed.  C+2 GC 34090  Original hard copy is  forwarded to court, citation  records are sent  electronically to the court..  Agency copy kept for  processing.  Parking  Citations forwarded to  Revenue Collections  004h  Equipment Records – includes  Drager Logs, PAS Records and  Radar Calibration Logs,  Weapons Records, ALPR Stats;  Flock and Star Chaser Forms  TERM+2 GC 34090  Retained until termination  of equipmentsequipment  use; Manuals, instructions,  procedures, assignments,  maintenance  004i License/Permits C+2 GC 34090  Parade, Noise Exemption,  Special Events, Block Party,  Taxi, Masseuse.  No longer  interested forms to be sent  to DOJ for applicant  expired applicant  information.  004j Warrants:    Warrants attaining purge  date are sent to Santa Clara  Co DA’s office for review of  extension of warrant/  Active case or purge.  All    (1)      Felony Felony – C+ 10 GC 34090    (2)      Misdemeanor Misdemeanor – C+7 PC 799    (3)      Infraction Infraction – C+7 PC 800/801  Page 41 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 45  Packet Pg. 59 of 1138  City of Palo Alto  Records Retention Schedule  Police Department  Series Description Total Retention Statutory  Reference  Remarks  C = Current Year  PER = Permanent  TER = Termination  S = Supersede  CLETS/AWS systems must  be updated or cancelled.  004k NCIC Validations C+2 GC 34090 Copies sent monthly to DOJ  ???  004l  Records requests,  miscellaneous correspondence,  no record, RFP’s   C+2 GC 34090 The destruction of felony, misdemeanor, and infraction Crime/Supplemental Reports is permitted providing:  (1)They do not relate to an unadjudicated arrest except for HS 11357 or HS 11360 violations; (2)They do not relate to unserved warrants; (3)They do not involve identifiable items which have not been recovered; (4)The do not relate to PC 290, PC 457.1, or HS 11590 Registrants; (5)They do not relate to violations listed in PC Sections 799 and PC 800; (6)The cases are not presently involved in either a civil or criminal litigation. Page 42 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 46  Packet Pg. 60 of 1138  City of Palo Alto  Records Retention Schedule  Public Works  Series Description Total  Retention  Statutory  Reference  Remarks    C = Current Year  PER = Permanent  TER = Termination  S = Supersede  ADMINISTRATION  1 PERSONNEL  Confidential Documents  While  useful  Duplicate of Human  ResourcesPeople Strategy and  Operations (PSO)  1  Contracts/purchase orders  awarded by PW Department,  except construction/capital  improvement  TER+4 CCP 337  CCP 343  AIRPORT    AGREEMENTS/CONTRACTS  While  useful  TER+4   CCP 337  CCP 343  Duplicate of ASD and CLK  1 BUDGET   Budget Change Requests PER Duplicate of Office of Management  & Budget  2  CAPITAL IMPROVEMENTS  a)Project Files, Work Orders, Schedules, Bidders List,  Correspondence, Change Order  b)Specifications, Reports Plans, Contracts and Subdivisions PER   H&S  19850  GC 4003  Life of Structure  2  GENERAL  Correspondence  Membership Information  Notice to Airmen (NOTAM)  C+2 GC 34090  GRANTS  Applications  Awards  PER 2 CFR  200.334  Department Opinion  OPERATIONAL REPORTS  Daily, Weekly, Monthly,  Quarterly, and Annually  C+4 GC 34090 Federal Aviation Administration  (FAA)  PERMITS PER STAFF  Evaluations  Personnel Action Forms  S+5UP   Labor  Code  Section  5410  Duplicate of HR PSO  TENANT FILES  Applications  Payments/Receipts Log  Leases  PER ENGINEERING SERVICES  005  013  ASSESSMENT DISTRIC   Boundaries & Rolls PER GC 34090  006  020  BENCHMARK DATA  Horizontal, Vertical & Control PER GC 34090 Department Opinion ‐ Need this  data for historical reference material  007  011  CAPITAL IMPROVEMENTS  a)Project Files, Work Orders, Schedules, Bidders List,  Correspondence,  PER   H&S  19850  GC 4003  Life of Structure  Page 43 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 47  Packet Pg. 61 of 1138  City of Palo Alto  Records Retention Schedule  Public Works   Series Description Total  Retention  Statutory  Reference  Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  Change Order  b) Specifications, Reports Plans,  Contracts and Subdivisions  c) Street Reports  8 CERTIFICATES OF COMPLIANCE PER GC 34090 Duplicate of City Clerk  9 CERTIFICATES OF INSURANCE SUP GC 34090   10  ENCROACHMENT PERMITS  a) Permanent Encroachments  b) Temporary Encroachments    PER  C+2  GC 34090   11  FLOOD ZONE  Elevation Certificates & Letter  of Map Amendments  PER GC 34090   12 MAPS – Annexations, Park  Dedication, Tract, & Block SUP GC 34090 Keep current map version only  13  PERSONNEL  Evaluations  Personnel Action Forms  SUP   Duplicate of HRPSO  14 PRIVATE DEVELOPMENT  REVIEWS C+2 GC 34090   15 SOIL REPORTS PER    Department Opinion ‐ Need this  data for historical reference material  16 STREET WORK PERMITS PER GC 34090   17  SUBDIVISIONS  a) Agreements  b) Parcels and Subdivision Maps    PER  CS+2  GC 34090 Keep current map version only  18 SURVEYS – Recording Data and  Maps PER GC 34090 Department Opinion ‐ Need this  data for historical reference material  ENVIRONMENTAL SERVICES       19 ENVIRONMENTAL FILES PER    Department Opinion  20 Discharger permits and permit  support documents  Permit  expiration  or facility  closure + 3  years  40 CFR Federal Pretreatment Regulations    Other Discharger data and  records C+122 40CFR 40  CFR 141.91 Federal Pretreatment Regulations  WATER QUALITY CONTROL PLANT       35 FLOW  Discharge Data and Reports PER 40 CFR  122.41  Department Opinion  36  MAINTENANCE  Flow Strip charts, Instrument  Calibrations, Operations,  Maintenance & Laboratory  Records, & Crane Maintenance  and Certification, State  Certification  C+4    Department Opinion  Page 44 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 48  Packet Pg. 62 of 1138  City of Palo Alto  Records Retention Schedule  Public Works   Series Description Total  Retention  Statutory  Reference  Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  37  NPDES (National Pollution  Discharge Elimination System) –  Permits and Reports  PER 40 CFR  122.28  Department Opinion  38  PERMITS  Pressurized Vessels, Air &  Industrial Waste  TERC+4 GC 34090   39 SAFETY  Meetings and Training C+4 GC 34090   40 SEPTIC & RECLAIMED WATER  Permits, Fees, Billings C+4 GC 34090 Department Opinion  41  PERSONNEL  Staff with aAccident report,  accident investigation, or  important disciplinary  matterother personnel event  resulting in change of policy  TER+30     Department Opinion  Duplicate of PSHR  ZERO WASTE          Landfill Daily Log Operator  Assignments and Maintenance  Activities  C+5    GC 34090         Landfill Reports & Records PER GC 34090      Landfill tollbooth receipts C+5        Household Hazardous Waste  Manifest & Reports PER          SMaRT Station & Kirby contract  data C+10   Department Opinion    Waste Contractor data ‐‐   GreenWaste of Palo Alto C+10   Department Opinion    Recycling Programs  S+2 GC 34090   SUSTAINABILITY         Climate Action Plan Reporting C+25 GC 34090 Department Opinion    Sustainability Project  Documentation C+10 GC 34090 Department Opinion    Greenhouse Gas Inventory Data PER GC 34090 Department Opinion  EQUIPMENT MANAGEMENT       21 Transactions – Parts, Fuel, and  Gas Tags C+2 GC 34090   22 Vehicles – Registrations & DMV  Correspondence  Life of  Vehicle   DMV Requirement  FACILITIES MANAGEMENT       23  BUILDING MAINTENANCE Custodial cContracts City Manager Reports Specifications Bidders List Change Orders Payment Files    TER+4      C+2  GC 34090  CCP 337  CCP 343    Page 45 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 49  Packet Pg. 63 of 1138  City of Palo Alto  Records Retention Schedule  Public Works   Series Description Total  Retention  Statutory  Reference  Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  24  CAPITAL IMPROVEMENTS  a) Project Files, Work Orders,  Schedules, Bidders List,  Correspondence, Change Order  b) Specifications, Reports Plans,  Contracts and Subdivisions  PER   H&S  19850  GC 4003  CCP  337.15  Department Opinion  25 GENERAL ‐ Correspondence  Forms C+2 GC 34090   26  PERSONNEL  Division Staff Schedules  Personnel Action Forms  Injury/Accident Reports  TER  Labor  Code  Section  5410    Originals to HR, copy kept in  individual’s file until employee  termination  27  REPORTS  Quarterly Summary of  maintenance labor and material  costs for Parking Lots  C+2 GC 34090   28 SUBJECT FILES C+2 GC 34090   22 Internal Working Files       29  WORK REQUESTS  Labor and Material Tracking  Key Requests  Service Calls  C+2 GC 34090   STREETS/SIDEWALKS/STORM DRAIN       30  26  32  25  DAILY REPORTS  Operator assignments &  equipment status  Storm Drain  Work Orders  C+5 GC 34090    33  Tree line clearing, landscaping  plans, pesticide spraying,  inventory & irrigation plans  C + 2 GC 34090    34  WORK ORDERS  Streets, sidewalk, signs,  sweeping, trees  C+5   GC 34090   35 Urban Forestry C+2 GC 34090               Page 46 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 50  Packet Pg. 64 of 1138  City of Palo Alto  Records Retention Schedule  Utilities  Series Description Total  Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  ADMINISTRATIVE RECORDS        001  Management books, CIP Budget,  Working Files, Operating &  Safety, Staff Meetings,  Correspondence, Budget Change  Requests, Journal Entries  Shipping Receipts, Depreciation,  Proof of Publication  C+2 GC 34090       Master Plans PER    Department Opinion     WGW Ops Dailies  WGW Ops Stand‐by/Call Out  Time Report  Shipping records Internal vs.  Outside Vendor  C+2  C+2    C+2    Department Opinion  SUBJECT FILES        002  Policies, Procedures, Processes,  Marking Requirements,  Engineering Standards, Electric  Service Requirements, Cable  Specs, Forms, Best Management  Practices  S+2C+2 GC34090 Department Opinion  003 Drivers License Records While  Useful   Duplicate of DMV  004  Other Departments – City  ManagerStaff Reports,  Personnel, Pos, Time Cards,  Claim Vouchers, Invoices,  Abandonments, Annexations,  Council Agendas, Unaccepted  bids, Finance Reports,  Encroachment Permits & Records  Retention Schedule  While  Useful    Duplicate records – originating  department maintains official  document  CONTRACTS        005 Construction & Services/Products  over $25,000  While  Useful  CCP 337 Council approved contracts  Dduplicate of City Clerk  005 Services/Products under $25,000 TER+5    CCP 337 City Attorney Opinion   Construction PER CCP 337.15 Council approved contracts  duplicate of City Clerk  005 Unaccepted Bids C+2 GC 34090       Electric and Gas Meter SUP+7   Duplicate of City Clerk    Purchase and Sales Agreements ‐  EEI & NAESB SUP+7   Department Opinion for  retention in Dept. files    Renewable Energy Certificate  Master Agreement SUP+7    Duplicate of City Clerk   Dept. Opinion for retention in  Dept. files  Page 47 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 51  Packet Pg. 65 of 1138  City of Palo Alto  Records Retention Schedule  Utilities  Series Description Total  Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede     Master Agreement ‐‐ Transaction  and/or Confirmation Agreements  ‐‐ including supporting  documentation (deal sheet,  shopping sheet, authorization  etc.)  TER+7 CCP 337  Retained in Utilities Dept.    Bilateral Commodity and/or  related service agreements TER+7     If within City Manager  authority, then retained in  Utilities Dept. If Council  approved, retained in City  Clerk's Office   PROJECT FILES        006 Internal working files PER    Department opinion   RATES        007 Rates – All Services PER    Department opinion  REPORTS        009  Statistical, sales, annual  consumption analysis and  various spreadsheets  C+2 GC 34090     UTILITY ADVISORY COMMISSION        010  Agenda  Proof of PublicationPosting  Minutes of all meetings  General Correspondence  Proof of Agenda Posting  C+2PER  C+2  PER  C+2  C+2    Agendas Duplicate of City Clerk  010 Correspondence and Data Tapes C+2 GC 34090     TASK FORCE        011 City of Palo Alto and SCVWD  Meetings C+2 GC 34090     011 Any task force – internal and/or  external C+2 GC 34090     REGULATIONS        013           National Gas Act  Pipeline Safety Act  Natural Gas Policy Act  CVPIA  While  Useful   C+2   C+2   C+2              Duplicate of Other Agency  CVPIA = Central Valley Project  Improvement Act   CVPIA = Central Valley Project  Improvement Act   013 Correspondence w/ Agency C+2 GC 34090     STUDIES ‐ SURVEYS        014           Gas System Study  Distribution  Electro Magnetic Field Survey  and Energy Case Studies  Commodity Resource  C+2    C+2    C+2  GC 34090                       CUSTOMER SERVICES        Page 48 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 52  Packet Pg. 66 of 1138  City of Palo Alto  Records Retention Schedule  Utilities  Series Description Total  Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  015 Customer Correspondence  Letters, faxes, emails C+2    Department Opinion  015  Service:   GC 34090 All listed will be scanned and  retained electronically   Residential Service  Agreement C+3   Residential Service  Application C+3   Commercial Service  Agreement PER   Commercial Service  Application PER   Utilities Account Change C+3   Make Change to Account C+3   Account Closure Request C+3   Close Utilities Account C+3   Revert to Owner Request PER   Revert to Owner Application PER  015   Demolition Request  Demolition Application  Temporary Power  Temporary Power Application  Hydrant Water Application  Hydrant Meter Application  C+3  C+3  C+2  C+2  C+2  C+2    Department Opinion  Department Opinion   015  Billing   Consumption Adjustment   Correct Misread and Billings   Miscellaneous Adjustment   Apply Credit or Debit   Invoice Cancellation   Cancel Rebill Invoice   PV Statements   Monthly PV Status    C+2    C+2    C+2    C+2  C+2  C+2  C+2  C+2    All are created and saved on  electronic templates     Bank drafts  Bank draft confirmation  Returned items  Bank draft application    C+2  C+2  C+2    Duplicate of Admin. Services  Bank Items  Page 49 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 53  Packet Pg. 67 of 1138  City of Palo Alto  Records Retention Schedule  Utilities  Series Description Total  Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  015   Credit & Collections   Rate Assistance   Annual Application Renewal   Project Pledge   One time Submission   Bankruptcy   LIHeap   LIHeap send discs    C+21  C+21    PER  PER  C+3  C+21  C+21     Department Opinion  LIHeap = Low Income Home  Energy Assistance Program  015  Meter Reading  C+1  C+1    C+2    C+2  C+1  C+1    Department Opinion   Customer Read Cards   Reads Submitted by  Customers   Customer Read Emails   Electronic Read Submitted  by Customers   On/and Off Orders   Electronic in SAP   CONSTRUCTION        016  Acquisitions, Easement, Design,  Drawings, Specifications, Photos,  Permits, Soil Reports,  Correspondence, Quotes,  Payments & Schedules  PER GC 34090 Historical     CPAU Work Orders  As‐Built Maps  Valve Cards  PER    California Department of  Transportation     CPAU Work Orders of  Abandoned Pipe  As‐Built Maps of Abandoned  Pipe  Valve Cards of Abandoned Valves  PER    Department Opinion     ICOMMM Lateral Work Orders   ACP Forms  C+5  C+5   Department Opinion  REGULATORY AGENCIES        017 Reports to    Federal Register  C+2 GC 34090                 U.S. Dept of Energy     PG&E      State Regulatory Agencies  (e.g. Public Utilities  Commission)     California Energy  Commission       California Air Resource  Board    REGULATORY RECORDS        Page 50 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 54  Packet Pg. 68 of 1138  City of Palo Alto  Records Retention Schedule  Utilities  Series Description Total  Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede     Sanitary Sewer Overflow (SSO)  Reports  Sanitary Surveys    C+5  C+10       40 CFR 141.33    RWQCB  Statistics, reports,  correspondence    Water Discharge Form  Water Discharge Monitoring     C+5  C+5     40 CFR 122.41  Annual Report for Public Works  Storm Water Department      Water Connection Records,  Device Locations, and Water  Maps  PER GC 34090       Reports:      Compliance documentation  Average amount of pollution  discharged into waters   Compliance documentation   Corrosion Control C+12 40 CFR 141.91   Discharge Monitoring C+5 40 CR 141.91   Drinking Water Corrections  C+10 40 CFR 141.33   Lead Service Line C+12 40 CFR 141.91    Water/Sewer Infrastructure Data  in GIS SUP GC 34090      Underground Utility Locating C+6  CAGC Title 1 Division 5  Chapter 3.1 Article 2  Section 4216    Exception Collection Reviews,  Waste Logs C+2 GC 34090       Paradigm Data Sheets  Cathodic Work Orders  Cathodic Protection with Gas  Distribution Map  Exposed Pipe Reports  Steel Pipeline Tapping Coupon  Records  Annual Report to DOT  Emergency Response Plan  Operations and Maintenance  Manual  PER  PER  PER    PER  TER+5    C+5  C+5  C+5    California Department of  Transportation  EMPLOYEE TEST RECORDS          Gas Operator Qualification C+5    California Department of  Transportation     Employee Water Distribution  Certification  Employee Water Treatment  Certification  Employee Backflow Certification  Employee Cross Connection  Certification  C+3    C+3    C+3    C+3       State    Welding Record (form 225A) PER    California Department of  Transportation  Page 51 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 55  Packet Pg. 69 of 1138  City of Palo Alto  Records Retention Schedule  Utilities  Series Description Total  Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  TESTS/INSPECTIONS/SURVEYS          Backflow Annual Certifications C+3    State     FSR Gas Leak Investigations  (818 Form)  FSR Stop Card Database  Gas Shop Stop Card  Water Shop Stop Card  C+7    PER  PER  PER    California Department of  Transportation     Gas Receiving Stations  Odorant and Oil Drip  Water Meter Test Results  Gas Meter Test Results  Meter Leak Tags  Abnormal Operating Conditions  (AOC)  PER  PER  PER  PER  PER  PER    California Department of  Transportation     Water Quality‐Water Sources:   Testing   Fluoride Summary   Ground Water Elevation   Bacteriologic Analysis   Chemical Analysis   Reservoirs, Wells & Rainfall  Gauge  Water Maintenance Records  Water Discharge Form  C+10                  C+5  C+5  Title 22 CCR  66261.24(a)(7)  40 CFR 141.33  State    CPAU Gas Pipeline Patrol  Program  CPAU WGW Operations Pre‐  Tested Pipe Tag (Form 503)  CPAU WGW Operations Grade 1  Log Re‐Checks  Gas Leakage Survey  C+5    PER    C+5    C+5   California Department of  Transportation  PERMANENT RECORDS        019 Equipment Records Life of Equip  + 2 GC 34090     Page 52 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 56  Packet Pg. 70 of 1138  City of Palo Alto  Records Retention Schedule  Utilities  Series Description Total  Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  019  General Information  Regulating  Specifications & Testing  Gas Leakage Survey  Meter Leak Tag  AOC  CPAU/WGW Operations Pre‐ Tested Pipe Tag  Gas/Water Shop Stop Card  Odorant & Oil Dip  Valve Cards  Valve Cards of Abandoned Valve  Welding Record  Gas Receiving Station  PER                   Form 503          Form 225A  ELECTRIC UTILITY        052  048  Electric‐‐Circuit Map, Electric  Distribution, Street Light Block,  EV Charger Maps  C+2  GC 34090 Duplicate stored offsite as vital  copy backup     Maps: Electric Distribution, Pole  Test Block, Distribution Block,  Street Light Block, Hardware and  Coax   Current  while  active,+ 2  years off  site  053  049  Underground District:  Transmission Line Logs &  Correspondence  C+2 GC 34090        054  050  Work Orders:  Pacific Bell, Cable Co‐op, PG&E,  and Intents  PER    Department Opinion  055  051  Acquisitions, Design, Drawings,  Specs, Permits, Correspondence  quotes, Payments & Schedules  CIP/Construction  PER    Department Opinion ‐  Historical  056 Electric Vehicles:  Power Delivery Records  Life of  Vehicle +2  off site  GC34090     057     Street Lights:  Lighting, Program Materials C+2  GC 34090       058 Joint Pole Applications TER+5    Department Opinion   Customer Services Projects  Applications, Plans, Invoices C+2      ELECTRIC OPERATIONS  059  Compliance/Inspections/Locating   Field Switch/Man on Line  Logs   Overhead/Underground  Compliance Records    PER  PER            C+1 on site  C+1 on site        Page 53 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 57  Packet Pg. 71 of 1138  City of Palo Alto  Records Retention Schedule  Utilities  Series Description Total  Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede   Underground Service Alert  Notices  a. Completed Tickets  b. Original Email Notices    C+6  C+21      Onsite   060 Customer Service – UCC  Dispatch Logs PER   Electronic copy on S drive  061  Street Lights/Traffic Signal/Fiber  Notifications – SL & TS  Maintenance – WO ‐ TS  C+6    Work transaction recorded in  SAP. Mark‐up records  maintained on site  062  055       Substations  a) Equipment (transformers,  switches, breakers, capacitors,  relays)   Specifications   Inspection   Inventory   Replacement   Disposal  Life of Equip  +2     Department Opinion  Duplicate stored offsite as vital  copy backup  062  055  Substations  b) Operations (troubleshooting,  line logs, load reports, power  factor, fences, cost data)  C+6       18 CFR Sections  125.3(23) & 125.3(26)  Inspection records and  equipment test records stored  electronically on F:drive  C+3 on site + 3 years off‐site   064  055  Substations  c) Relay and fuse curves, fault  current, calculations, supervisory  control, automation and  distribution automation (SCADA)  and Control Information  C+2  GC 34090   Duplicate stored offsite as vital  backup copy   MARKETING SERVICES          Program Development PER    Department Opinion  061  064  Customer Applications  Smart Energy Program  CAP  PV Partners Program  Solar Water Heating Program  Solar Water Heating Loan  Program 1970‐1990  Palo Alto Green Program  Palo Alto Green Gas/New PA  Green  Fiber Program  Customer Applications  Rebate Application & agreement  Rebate Applications  Old Program ‐‐ files at The State  Signed Agreements  C+2  C+2  C+2  C+2  C+2    C+2  C+2    C+2  C+2  C+2  C+2  C+2  C+2  C+2                GC 34090  Department Opinion  Department Opinion  Department Opinion  Department Opinion                      Council approved contracts  Dduplicate of City Clerk Page 54 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 58  Packet Pg. 72 of 1138  City of Palo Alto  Records Retention Schedule  Utilities  Series Description Total  Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  062  066  Vendor contract invoices  3rd Pary Programs  Monthly/quarterly/annual  electronic records  While  contract is  in  effectTER+4  CCP 337 Department Opinion  063  066  Key Account Engineering Audit  Reports  BI Reports  Pcard receipts  C+2    C+2  C+2  GC 34090 Department Opinion  067     Public Outreach  Program marketing materials  Customer Workshops & Facility  Manager Meetings  C+6    C+2         Department Opinion     SUPPLY RESOURCE GROUP        070     Settlement Date  Commodity Invoices/payment  records  TER+2  PER        Department Opinion  Keep for two years past  contractual limitation of  invoice dispute  071  Regulatory Reference Materials  (e.g. – laws, ruling, orders, court  cases, settlements)  While  Useful  Duplicate of Other Agency     Risk Management  FO and BO Transaction oversight  Monthly BO reports  FO and BO Quarterly reports  FO Weekly Reports  C+6    Department Opinion  078  Rates Documents  Rates/Pricing  Cost of Service Studies  SUP+7      080  Resource Plans  Long‐term Electric Acquisition  Plan, Gas Long‐Term Plan, Water  Integrated Resources Plan  SUP+2    Department Opinion  Adopted plans duplicate of City  Manager and City Clerk     Electric Portfolio Models  Commodity Costs Protections &  Uncertainty Assessment  ‐ load and resource balance  ‐ supply costs  ‐ transmission cost  ‐ interconnection  ‐ agency costs  ‐ hydrology  ‐ plant operation and  maintenance  ‐ regulatory costs  C+7 for  annual  budget  models     Maintained in electronic  models   ‐ overwritten as necessary  Page 55 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 59  Packet Pg. 73 of 1138  City of Palo Alto  Records Retention Schedule  Utilities  Series Description Total  Retention Statutory Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede     Electric Procurement Plan  Procurement Plans ‐‐ Needs  Analysis Load/Resource  Balance Targets  Authorizations  C+5    Department opinion    Voluntary Certification and  Verification  C+7     Department Opinion     §  Reports to certifying and  verifying agencies such as The  Climate Registry for GHG  Inventory and for Carbon Neutral  Plan (Electric Power Sector)        §  Reports from certifying and  verification agencies such as  audit reports       §  Risk Oversight Committee       §  New Models       §  Standards of Conduct        R&D Program  PET Projects related  documentation  C+6    Department Opinion    Policies  Analysis of plans, programs, and  policies that become adopted by  Council  SC+2   Department Opinion    Page 56 of 56 Item 2 Attachment B - 2025 Records Retention Schedule - Redline        Item 2: Staff Report Pg. 60  Packet Pg. 74 of 1138  READING THE RETENTION SCHEDULE: A "HOW TO" GUIDE BACKGROUND The Retention Schedule, as approved by the City Council through Resolution, is a legal document. It identifies the types of records and information used and managed by a department, how long that information must be retained at the office and/or off-site, and when it may be destroyed. Each department is required to have a current Schedule. It is the responsibility of the department to notify the City Clerk’s Office of any business, organizational, functional, or legal changes which would impact their specific Schedule. The City Clerk’s Office coordinates with the departments and Office of the City Attorney (which reviews the schedules for compliance with all government codes and regulations) prior to approval by the City Council. The Schedules should be reviewed for accuracy every two to three years by the City Clerk’s and City Attorney’s Offices in conjunction with each respective department. DEFINITIONS Description – This is the general description of a group of records with similar business functions and retention requirements. The description must coincide with file titles maintained by the department. Total Retention – This refers to the length of time a record must be kept before it is eligible for destruction. C – Current refers to the current calendar year in which a record is made. The Retention period begins the first day of the following calendar year. (For example, C+2 means that any record created in 2025 is kept for the two following years, 2026 and 2027. The record would be eligible for destruction after December 31, 2027). PER – Permanent refers to records that should be kept in perpetuity and never destroyed. S – Supersede indicates that old items are replaced by a more current version. TER—Termination refers to the end date of a contract, agreement, term, etc. Statutory Reference – This field includes regulations and codes that govern the retention of a specific record type. All references are to California Code unless otherwise noted. Remarks – This field includes general comments about the information in this row. When "Department Opinion" is noted in this column, it means that the Department has decided to maintain the record longer than the legal requirement. "Attorney Opinion" indicates that the retention requirement was established pursuant to the opinion of the City Attorney based on research, past litigation history, and/or the potential for future litigation on this topic. The 2025 revision preserves Department and Attorney Opinions from previous versions of the schedule. Page 1 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 61  Packet Pg. 75 of 1138  City of Palo Alto  Records Retention Schedule    Administrative Services  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  ADMINISTRATION          Correspondence, Messages,  Timecards, Staff Meetings, Studies  C+3    Auditors Opinions  3 Gifts to the City, Cash & Tangible  Property  C+6   Scanned list on CD Rom in Admin  Svcs Dept files  TREASURY           4  INVESTMENT MANAGEMENT‐ Security Purchases, Sales &  Investment Reports  C+7    Auditors Opinion  5 DEBT MANAGEMENT‐            (a) Deceased Insurance C+3    Department Opinion    (b) Final Bond TER+4   Duplicate Stored Offsite as vital  copy backup    (c)  Covenant Compliance TER+7   Duplicate stored offsite as vital  copy backup    (d)  Bank Records C+7   Duplicate stored offsite as vital  copy backup  REVENUE COLLECTION          6 (a)  Deposit/Reconciliation  Documentation  C+2 GC 34090     (b)  Parking Permit Records C+4 GC 34090        (c)  Collection Records – UUT,  Parking Citations, Delinquent  Accounts, Transient Occupancy Tax  C+5    Department Opinion    BUSINESS LICENSE TER+4 GC 34090;  CCP 337       LIENS & RELEASES  (a) Recorded Liens & Releases  (b) Supporting Recorded  Documentation    PER  TER+2 GC 34090     BUDGET          7 BUDGE            (a) Final Budget, CIP Budgets, Fee  Schedule  TER+4         (b) Supporting Documents for  Change Requests, Amendments,  Worksheets, Fee Schedules & Cost  Plans  C+2    Auditors Opinion     (c) Long Range Plans Studies,  Reports, Measurements, Forecasts  & Projections  C+3    Auditors Opinion  REAL ESTATE          8 BINDING INSTRUMENTS          Page 2 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 62  Packet Pg. 76 of 1138  City of Palo Alto  Records Retention Schedule    Administrative Services  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede    (a)   Land – Deeds, Easements PER    Duplicate of City Clerk    (b)   Easement Vacations, Leases &  Purchases  PER   Duplicate of City Clerk    (c) Encroachments, Agreements &  Conveyances  PER   Duplicate of City Clerk  PURCHASING          9  (a)      Council Approved Contracts,  Solicitations & Documents. All Open  Council Approved Contracts,  Solicitations & Documents  TER+ 4   CCP 337.2   CCP 343    Council Approved Contracts  duplicate of City Clerk     (b) Service Contracts, Purchase  Orders, Blanket Purchase Orders &  Solicitations & Documents  i. Purchase Orders/Blanket Orders  ii. Service Order Contracts  TER+4 TER+4      CCP 337.2   CCP 343        (c) Bids Unawarded Solicitations &  Documents  C+2 GC 34090 Department Opinion vital while  orders are open  10  INTERNAL VENDORS ‐  (Stores &  Print Shop) Reports, Orders,  Returns, Disposal Forms Journal &  Requisitions  C+4    Department and Auditors Opinion  ACCOUNTING          11 YEAR‐END REPORTS            (a) Budget‐to‐Actual C+2 GC 34090       (b) Comprehensive Annual Financial  Report (ACFR)  PER        (c) General Ledger, Encumbrance  Report  C+2 GC 34090       (e) Audit Work Papers & Journal  Entries  C+2  GC 34090  Digital copies of audit work  papers: saved on S drive, Journal  Entries saved on SAP effective  March 2023     (f) ANNUAL PUBLIC IMPROVEMENT  CORPORATION‐STATE  CONTROLLERS REPORT  C+7    Digital copies only     (g) PIC TAX Return C+7    Digital copies only    (g) Annual Street Report C+7    Digital copies only    (h) City Financial Transaction Report       Digital copies only   Utility Receipt Stubs C+2       ACCOUNTS PAYABLE          12 A/P + UTILITY CHECK   REGISTERS (WARRANTS)  C+7  C+7   Department and Auditors Opinion  (voided checks) Digital copies only  13  CANCELLED/VOIDED   WARRANTS. CHECK VOID FORMS +  BACKUP  C+4  C+7     Department and Auditors Opinion  (VOIDED CHECKS) Digital copies  only  14 VOUCHER PACKETS.   GENERAL WARRANT COPIES WITH  C+5  C+7   Department and Auditors Opinion  Digital copies only    Page 3 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 63  Packet Pg. 77 of 1138  City of Palo Alto  Records Retention Schedule    Administrative Services  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede  BACKUP FOR A/P, UTILITY REFUNDS,  3RD PARTY AND WIRE TRANSFERS  15 CAPITAL PROJECTS TER+7    Department and Auditors Opinion    Project Files, Street Reports, &  Community Development Block  Grant (CDBG) Billings    Community Development Block  Grant (CDBG) Billings / Drawdown       Digital copies only    UNIVERSITY AVENUE SPECIAL  ASSESSMENT PARKING DISTRICT  C+7   Digital copies only    ANNUAL INTERGOVERNMENTAL  EXPENDITURES REPORT  C+7   Digital copies only    ZFIR03 AUTHORIZED SIGNATURE  COVER SHEETS  C+7     Cover sheet for batches off  invoices from departments sent to  A/P. Has list of invoices enclosed  and department authorization to  process the invoices.      A/P JOURNAL LOG C+7   Digital copies only    AUTHORIZING SIGNATURE FORMS C+7    Digital copies only    TAX RECORDS – Sales Tax Filings,  1099 Tax Filings & Registers  C+7   Digital copies only  ACCOUNTS RECEIVABLE and CASH RECEIPTS           16  Backup for invoices created (such as  Airport, Avenidas, & Palo Alto  Community Childcare, Stanford, VTA  and others)             b) Facility Cash Receipts, Revenue  Collections Cash Receipts, and  Utility Cash Receipts  C+7 GC 34090,  CCP 338  Federal & State Audit  Requirements Duplicate stored offsite as vital  copy backup Department Opinion   Digital copies only  21 PAYROLL  C+7   29 CFR  Section  1627.3  Labor  Relations  Section  1174  California  Labor Code  Section  1174  Public Employees Retirement  System and Department Opinion ‐‐  Duplicate stored offsite as vital  copy backup    Garnishment Orders C+7   SB 807 1/2022 CA Record  Retention ‐ 4 Years    Direct Deposit/ W4 Changes C+7    IRS Requirement ‐ 4 years  Page 4 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 64  Packet Pg. 78 of 1138  City of Palo Alto  Records Retention Schedule    Administrative Services  Series Description Total  Retention  Statutory  Reference Remarks    C = Current Year  PER = Permanent  TER = Termination   S = Supersede    Copies of PSO PAF C+7   4 Years HR owns original copy  retention    CalPers Reporting C+7   4 Years HR owns original copy  retention    Third Party Reporting C+7    4 years    Payroll Quarterly Tax Reports C+7    IRS Requirement ‐ 4 years    Payroll Masterfile C+7    4 years    Payroll Reconciliations C+7    In accordance with GL    Payroll Journals C+7    In accordance with GL     W2 Copies C+4    IRS Requirement ‐ 4 years  ENTERPRISE/ GENERAL LEDGER ACCOUNTING         23 GL Accounts Reconciliations  C+7        24 Reconciliations of utility and other  clearing accounts  C+5       25 Receipts/stubs from the daily utility  payments process (batch detail)  C+2+2  months GC 34090     26 Audit Backup & Journal Entries  Backup  C+2 GC 34090     27          28  Fixed assets backup of journal  entries, capitalization, disposals &  reconciliations  TER + 3                      Page 5 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 65  Packet Pg. 79 of 1138  City of Palo Alto Records Retention Schedule City Attorney’s Office Series Description Remarks C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATIVE RECORDS General Info/Subject Files C+9 GC 34090 confidential documents. Keep files until subject matter is no longer active. Required to keep until reasonable threat orders originating in City TER+10 Review on a file by file basis for destruction SUBJECT FILES Legal memoranda to City Council C+11 Settlement Agreements C+10 Municipal prosecutions TER+10 Attorney-led investigations C+10 900 Claims TER+10 of legal action has passed. On a file by Civil litigation files C+10 of legal action has passed. On a file by Page 6 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 66  Packet Pg. 80 of 1138  City of Palo Alto Records Retention Schedule City Auditor SUBJECT FILES 4 Publications (Audit Reports), Status Reports, Revenue Reports, Council Reports PER GC 34090 publications included City Council /Committee agenda packets are 5 documentation for published C+7 GC 34090 While City Auditor is outsourced, duplicates kept by relevant 6 (Sales, TOT, UUT, Prop. Tax C+7 GC 34090 While City Auditor is outsourced, duplicates kept by relevant 7 Fraud, Waste, and Abuse Hotline documentation TER+5 GC 34090 While City Auditor is outsourced, duplicates may be kept by another Page 7 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 67  Packet Pg. 81 of 1138  City of Palo Alto Records Retention Schedule City Clerk’s Office Series Description Remarks C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATIVE RECORDS 100 PER GC 34090 101 a) Contracts awarded by City Clerk Department, except construction b) Contracts awarded by City Council, except construction c) City Clerk Purchase Orders d) Construction contracts TER+4 TER+4 C+2 PERM PAMC 2.08.110; CCP 337 PAMC 2.08.110; CCP 337 City Clerk Purchase Orders duplicate of ASD 103 LEGAL ADVERTISING C+4 seq.; Includes public hearing notices, legal publications 104 TER+2 GC 34090 TER = Resolution Date ADMINISTRATIVE HEARING RECORDS 106 TER+2 GC 34090 108 C+5 GC 34090 109 TER+2 GC 34090 Department opinion ELECTIONS/POLITICAL REFORM ACT 111 C+5 GC 53235.2b 113 STATEMENTS- a) Elected Members & Log of Filers, their Controlled Committees, and committees supporting such officeholders and candidates b) Non-elected candidates, committee supporting non- elected candidates c) Others -- Committees, Supporting/Opposing Measures, General Purpose, Independent expenditure, major donor committees d) Copies received (e.g. Form 410)(paper) e) Electronically filed PER C+5 C+7 C+4 PER GC 81009 (g) GC 81009(b) GC 81009(c) GC 81009(f) electronic copy of the statement may be retained and originals discarded (GC 81009(g)) Original electronic form must Page 8 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 68  Packet Pg. 82 of 1138  City of Palo Alto Records Retention Schedule City Clerk’s Office Series Description Remarks C = Current Year PER = Permanent TER = Termination S = Supersede 114 CONFLICT OF INTEREST CODE PER PAMC 2.08.110 115 a) Gift to Agency Report -- Form 801 b) Behested Payment Report - - Form 803 c) New Positions -- Form 804 d) Consultants -- Form 805 e) Public Official Appointments -- Form 806 C+7 C+7 S+4 C+4 C+2 FPPC 18944 GC 82015 FPPC 18734 FPPC 18734 FPPC18705.5 FPPC Retention Current on City Website 116 NOMINATION PAPERS TER+4 EC 17100 office or failure date Unless requested per EC 117 PETITIONS, INITIATIVES, REFERENDUM, RECALL & CHARTER AMENDMENTS Petition TER+8 months EC 17400 (Recall petitions) 7924.100- 7924.110 (PRA reference) PA Charter Articles VI and RESTRICTED ACCESS TER = date of election result certification Department Opinion 8/14 Certain records may be kept for historical/reference purposes 117b C+10 EC 15372 119 INTEREST – Form 700 (Designated Filers) & Log of C+7 GC 81009(e)-(g) Copies retained C+4 "Wet" paper filed forms can be 120 STATEMENT OF ECONOMIC INTEREST – Form 700 (GC 87200 Filers) & Log of Filers C+4 GC 81009(d)-(g) Copies retained C +4 GC 87200 Filers include City Council Members, the City Attorney, City Manager, Planning Commissioners, and the Administrative Services LEGISLATIVE HISTORY 121 a) Applications & Appointments I. Appointed II. Not Appointed b) Letters of Appointment TER+5 C+2 TER+2 GC 34090; GC 40801 TER = Leaving Office date CL = Close of recruitment TER = Leaving Office date TER = Leaving Office date Page 9 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 69  Packet Pg. 83 of 1138  City of Palo Alto Records Retention Schedule City Clerk’s Office Series Description Remarks C = Current Year PER = Permanent TER = Termination S = Supersede d) Oaths of Office e) Recruitment Outreach f) General Correspondence TER+6 TER+2 C+2 122 CITY COUNCIL ROSTER PER 123 COMMITTEES MEETINGS a) Agenda Packets -- Docs. and information submitted to Council including questions and answers to Council agenda items b) Agendas c) Minutes d) DVDs/Recordings e) Proof of Agenda Posting PER PER PER PER C+2 GC 34090; GC 40801 54960.1(c)(1) GC 34090 Department Opinion Department Opinion 2025 Agenda Packets not PER before 2024 Department Opinion 10/14 124 b) Biographies c) Photos d) Emergency Standby Council PER PER PER Department Opinion 10/14 125 126 ORDINANCES PER 128 RESOLUTIONS PER 129 MANAGEMENT- a) Retention Schedules & Manuals b) Destruction Certificates c) Transfer Lists S+4 PER PER S GC 34090 GC 34090 Department Opinion 8/14 Department Opinion 130 PER GC 34090 Department Opinion 8/14 REAL PROPERTY 133 a) Land -- Deeds, Easements, Record of Land Use Action b) Easements, Vacations, b) PER c) PER GC 340 90a Duplicate of County Recorder TER = paid in full Page 10 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 70  Packet Pg. 84 of 1138  City of Palo Alto Records Retention Schedule City Clerk’s Office Series Description Remarks C = Current Year PER = Permanent TER = Termination S = Supersede Conveyances d) Community Development Block Grants (CDBG) i. Deeds of Trust ii. Promissory Notes iii. Agreements e) Certificates of Compliance. f) Real Property Agreements, i.e. Regulatory Agreements, Declaration of Restrictive Covenants, Occupancy, Land Use, and Development e) PER f) PER 134 BONDS TER+10 Duplicate of County Recorder 137 SUBDIVIDER AGREEMENTS PER SUBJECT FILES 138 PER GC 34090 City Attorney Opinion 9/87 139 CEQA POSTINGS C+2 141 CLAIMS AGAINST THE CITY C+5 Duplicate of City Attorney 143 POWER AGENCY – Agreements including Transmission Agency of PER PAMC 2.08.110 City Attorney Opinion 9/87 146 S+2 GC 34090 147 Hill Road, Willow Rd. PER PAMC 2.08.110 City Attorney Opinion 9/87 148 files included, unless specifically set forth C+2 GC 34090 Confidential Legal Opinions are not public information and are restricted from public access. 149 PER GC 34090 City Attorney Opinion 1995 Page 11 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 71  Packet Pg. 85 of 1138  City of Palo Alto Records Retention Schedule City Manager’s Office C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATIVE RECORDS 001 Personnel Information, Budget Information While useful Duplicate records of other departments 003 for Projects throughout City PER May be stored off-site Sister Cities C+2 GC 34090 LEGISLATIVE HISTORY 004 Legislative Letters C+5 SUBJECT FILES 005 various subjects, Project files, C+2 GC 34090 POLICIES AND PROCEDURES 006 Official copies of all City Policies and procedures S current copy of the Policies & TRANSPORTATION BICYCLES 016 Unique project, historical significance, model for other jurisdictions in and out of U.S. Department Opinion (signing/striping, signal detection), paths, Routes and 017 Signal Management Program (FETSIM) Applications, Prop 116 Applications, Surface Transportation Program (STDP)/Congestion Mitigation and Air Quality (CMAQ)Applications and Transportation Development Act (TDA) Article 3 PER GC 34090 24 CFR 200.334 24 CFR 570.502 29 CFR 97.42 018 NEIGHBORHOOD STUDIES C+2 Department Opinion Page 12 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 72  Packet Pg. 86 of 1138  City of Palo Alto Records Retention Schedule C = Current Year PER = Permanent TER = Termination S = Supersede PARKING 020 Certificates of Insurance and C+2 GC 34090 021 jurisdiction bike plans, C+2 GC 34090 Reference C+5 GC 34090 Department Opinion 025 (high accident location/accident data and C+2 GC 34090 026 Plans PER H&S 19850 Page 13 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 73  Packet Pg. 87 of 1138  City of Palo Alto Records Retention Schedule Community Services Department C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATIVE SERVICES 1 C+2 2 C+2 GC 34090 4 b)Purchase Orders TER+3 6 Accounting – Sales Receipts, Deposits, Sales Logs, Ledgers, Fees/Fines, Bills & Transit Books C+2 Community Services Opinion ARTS & SCIENCES DIVISION 8 C+2 GC 34090 9 Art Collection C +2 10 a) Action Agenda a) Proof of Posting b) Minutes of all meetings c) General Correspondence d) Proof of Agenda Posting PER C+2 PER C+2 C+2 Community Services Opinion Duplicates of City Clerk 11 Exhibits – Junior Museum & Baylands Interpretive Center PER Community Services Opinion 12 Animal Permits – Junior Museum & Zoo TER+2 Fish & Game Sections 3200, 3204 HUMAN SERVICES & CUBBERLEY DIVISION a) Agendas and Packets b) Proof of Publication c) Minutes of all meetings d) General Correspondence e) Proof of Agenda Posting PER C+2 PER C+2 C+2 GC 34090 Duplicates of City Clerk RECREATION AND GOLF DIVISION 20 Use Permits – Fields, Parks, Courts, Certificates of Insurance, Facilities Applications & Logs and C+2 GC 34090 22 C+2 Page 14 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 74  Packet Pg. 88 of 1138  City of Palo Alto Records Retention Schedule Community Services Department C = Current Year PER = Permanent TER = Termination S = Supersede Parks & Recreation Commission - a) Action Agenda a) Proof of Posting b) Minutes of all meetings c) General Correspondence d) Proof of Agenda Posting PER C+2 PER C+2 C+2 GC 34090 Duplicate of City Clerk Fee Reduction Program C+2 ANIMAL SERVICES 23 Veterinary Medical Records – all records relating to animal inventory and care TER+3 BP 4081 FAC 32003€ PC 597.1(d) Police Dept. retention schedule. Retained by contractor Page 15 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 75  Packet Pg. 89 of 1138  City of Palo Alto Records Retention Schedule Fire Department C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATIVE RECORDS 1 DEPARTMENT MANAGEMENT C+2 GC 34090 While Useful Department Opinion S+6 TER+4 C+2 GC 34090 001(a) PER GC 34090(e) DEPARTMENT PLANS S+2 3 GENERAL CORRESPONDENCE & C+2 GC 34090 memos, emails, press C+2 GC 34090 minutes, public file While Useful Duplicate of City Clerk While Useful BIDS-UNACCEPTED 5 OTHER DEPARTMENTS While Useful timecards, leave While Useful Duplicate of Administrative Services (ASD) accounting reports, purchase orders, TER+4 CCP 337 CCP 337.15 Duplicate of ASD; Council approved contracts duplicate of City Clerk S Duplicate of City Clerk EMPLOYEE FILES 006(a) C+2 GC 34090 Duplicate of HR 006(c) C+2 GC 34090 Duplicate of HR 7 EMPLOYEE INJURY/EXPOSURE While Useful Duplicate of HR Page 16 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 76  Packet Pg. 90 of 1138  City of Palo Alto Records Retention Schedule Fire Department C = Current Year PER = Permanent TER = Termination S = Supersede PER 29CFR1910.1020 Department Opinion PER 8 Code Enforcement TERCL+5 CFC 104.6 Site Plans While Useful C+2 Alarm periodic testing C+6 Electronic 5 Year tests: Keep C+6 Stored by 3rd Party Vendor 008(a) FIRE INVESTIGATION REPORTS & PHOTOS TER+6 CFC 104.6.2 PC 801 structure or activity to which such records relate remains in 008(b) INVESTIGATION PER PC 799 C+6 onsite; PER offsite 008(c) ARSON /JUVENILE FIRESETTER SUSPECTS C+6 CFC 104.6; PC 801 documentation and classroom 9 C+2 GC 34090 10 While Useful 11 FIRE INSPECTIONS (Bureau and Engine TER+6 CFC 104.6.2 Department Opinion routine, special, new construction & tenant PER CFC 104.6.2 Electronically stored in Accela Notice of Violation C+2 CERTIFICATIONS PER Electronically stored in Accela 13 SPRINKLERS & FIRE SUPPRESSION SYSTEMS Life of Building (LoB) CFC 104.6 include blueprints, reports, inspection results, permits. Keep 2 years onsite, permanent Page 17 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 77  Packet Pg. 91 of 1138  City of Palo Alto Records Retention Schedule Fire Department C = Current Year PER = Permanent TER = Termination S = Supersede LoB 14 BUILDING PROJECTS LoB GC 34090(a) include blueprints, reports, inspection results, permits. Keep 2 years onsite, permanent Tenant Improvement Projects, including underground tank installations and PER Electronic Electronically stored in Accela PER CFC 104.6.4 Electronically stored in Accela SUPPRESSION 15 PER Electronically stored in RMS 015(a) Dispatch and daily logs C+2 GC 34090 015(b) PER Electronically stored in RMS 015(c) Field Reports; arson PER CFC 104.6 PC 801 Electronically stored in RMS 015(d) Field Reports; arson PER PC 799 Electronically stored in RMS 015(e) PER 45 CFR Part 164.530 Electronically stored in RMS 16 ENGINE/TRUCK EQUIPMENT HAZARDOUS MATERIALS 17 MATERIALS STORAGE TER+ 2 GC 34090 18 Seismic and secondary C+ 2 GC 34090 19 Reports & facility closure related information; related PER GC 34090(a) Pertains to real property. Electronically stored in California Environmental Reporting Service (CERS) Page 18 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 78  Packet Pg. 92 of 1138  City of Palo Alto Records Retention Schedule Fire Department C = Current Year PER = Permanent TER = Termination S = Supersede activities regulated by Calif. Regional Water Resources Control Board or Calif Dept of 20 MATERIALS & UNDERGROUND TANK INSPECTIONS, routine, special, and C+6 CCR 27, 15188 Department Opinion C+5 Required. Keep additional time for consistency with other inspection records. Electronically stored in CERS 21 MATERIALS BUSINESS C+2 GC 34090 Electronically stored in CERS UNDERGROUND TANKS 22(a) removals and related documentation. Does not include reports for activities regulated by Calif. Regional Water Resources Control Board or Calif. Dept of PER GC 34090(a) Pertains to real property. May include blueprints, reports, inspection results, permits Electronically stored in CERS 022(b) monitoring and special C+2 GC 34090 Electronically stored in CERS PROGRAMS 23 Strike teams and C+12 GC 34090 C+12. Note that GC 34090 23 (a) Worker: All associated TER + 30 CCR 19, 2573.2 GC 3105, 6250 Required for injury Claims 24 C+4 Page 19 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 79  Packet Pg. 93 of 1138  City of Palo Alto Records Retention Schedule Human Resources C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATIVE RECORDS 1 GENERAL – Correspondence, Timecards, Contracts, Subject Files, Budgets, Projects C+2 GC 34090 2 C+2 GC 34090 EMPLOYMENT 4 RECRUITMENT – Applications, Resumes, Alternate Lists, Testing C+3 42 USC Sections 2000e-8; 29 CFR Section 1602.12 and 1602.14 Restricted Access 5 PERSONNEL FILES (a) Regular Employees TER+15 1627.3 Labor Code Section Access may digitally store after 2 years and shred Restricted Access Quality Control Plant -- Senior Chemist, Chemist, Laboratory Tech, Senior Industrial Waste Investigator, Industrial Waste Investigator, Senior Mechanic, Mechanic, Senior Operator, WQC Plant Operators I/II, Industrial Waste Inspectors, Electricians, Supervisor, WQCP Operations, Manager/Assistant TER+30 29 CFR 1910.1020; Cal OSHA 8 Cal Code Regs 3204 Access may digitally store after 2 years and shred Restricted Access *There may be other employees in safety-sensitive position in other locations with same extended retention schedule 5 PERSONNEL FILES (c) Hourly Employees TER+5 1627.3 Labor Code Section Access may digitally store after 2 years and shred Restricted access 6 RETIREMENT – Public Employee Retirement System TER+4 1001 – 1381 29 CFR Section Restricted Access 7 reclassification, PDQs, Job C+3 Labor Code Section 1197.5(e) PDQ = Position Description Questionnaire BENEFITS 8 DCAP), Deferred Comp, Dental, EAP, Life, Medical, Vision/LTD Claim Applications, Leave, Domestic Partner C+4 29 CFR Section 1627.3 DCAP = Dependent Care Assistance Program EAP = Employee Assistance Program Page 20 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 80  Packet Pg. 94 of 1138  City of Palo Alto Records Retention Schedule Human Resources C = Current Year PER = Permanent TER = Termination S = Supersede 9 a) 804 New Positions -- Form 804 C+4 C+4 FPPC 18734 FPPC 18734 Duplicate of City Clerk RISK MANAGEMENT/WORKERS' COMP 10 WORKERS COMPENSATION Claim Files PER 5410 8 CCR 3204(d)(1) 8 CCR 10102 Files are held at Administrator’s Office, City only keeps working file Restricted Access 11 Excess Liability (ACCEL) JPA C+3 Department Opinion 12 DMV Employer Pull Notice Program Reports if employee has violation Department Opinion Restricted Access 13 DRUG TESTING C+5 DOT 49 CFR Part 40 Subpart P Sect 40.333; 49 CFR 40.333 and Sect Restricted Access 14 SAFETY REPORTS a) Investigation Reports b) Hearing Tests PER TER+5 C+4 8 CCR 3203(b)(1)-(2), 8 CCR 3203(c)(2), Department Opinion (a) Insurance bond policies (b) Insurance certificates TER+10 CCP 337.2; 343 INFECTIOUS DISEASE & OCCUPATION EXPOSURE FILES PER 29CFR 1910.1030(h); 29 CFR 1910.1020; 8CCR3204(d)(1)(B) OCCUPATIONAL MEDICAL TEST TER+5 FMLA 1993 US OSHA; 29 CFR 1910.1020; 29 CFR 1602.30- 1602.32; OSHA; 8CCR5100(d)(2)OSHA Page 21 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 81  Packet Pg. 95 of 1138  City of Palo Alto Records Retention Schedule Human Resources C = Current Year PER = Permanent TER = Termination S = Supersede LEAVE - DISABILITY TER+5 FMLA 1993 US OSHA; 29 CFR 1910.1020; 29 CFR 1602.30- 1602.32; OSHA Accident, Incident, and Injury Reports PER 8 CCR 10102 GC 12946 HUMAN RESOURCES DEVELOPMENT 16 Instructor Lists, Class Rosters, & C+2 49 CFR 199.17 49 CFR 199.227 Department Opinion EMPLOYEE RELATIONS 17 Notebooks, Correspondence, C+10 29 USC Sections 211 (c), 203 (m), 207 (g) Restricted Access 18 Salary History Sheets, Job Descriptions, Salary Surveys, C+7 Department Opinion 19 Grievances Reports, SEIU Window Period Requests, Sexual Harassment & C+7 29 CFR Section 1602.21 (h) Restricted Access PERSONNEL MANAGEMENT 21 TER+5 23 CLASSIFICATION AND COMPENSATION SURVEYS C+2 CFR 516.6(2); 29 CFR 25 LEAVE - MEDICAL TER+5 FMLA 1993 US OSHA; 29 CFR 1910.1020; 29 CFR 1602.30 27 SALARY INFORMATION - Salary schedule, Salary resolutions PER GC 34090; GC 12946; 29 CFR 516.6(2) Page 22 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 82  Packet Pg. 96 of 1138  City of Palo Alto Records Retention Schedule Information Technology C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATIVE RECORDS 001 Subject files, general correspondence, C+2 GC 34090 SUBJECT FILES 002 Phone Log Files C+2 GC 34090 Call records 003 Service Desk Tickets C+2 GC 34090 IT Service Desk Tickets 004 C+7 SAP Database Backups 005 Contracts a) Under $5000 b) $5000 and over c) $85000 and over TER+4 TER+4 TER+4 CCP 37.2 CCP 343 GC 34090 Duplicate of ASD City Council approved contracts duplicate of City Clerk 006 Hardware and software inventories S+2 GC 34090 and software used to track locations, to whom assigned, and licensing information, as Page 23 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 83  Packet Pg. 97 of 1138  City of Palo Alto Records Retention Schedule Library C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATIVE RECORDS Work Schedules, Volunteer Records, Budget Preparation, Surveys, Statistics, Projects, Staff Reports, Org Chart, Memberships, Legal Opinion, Staff Development and Training, Community Relations, Benchmark C+2 GC 34090 Department Policies and Procedures, Strategic Plan, Safety/Security Manual, Disaster S GC 34090 Reports Correspondence, Memos, Emails, Press Releases, Committee Reports, Meeting Notes, Working C+2 GC 34090 Email messages related to a current project or a policy-making decision should be retained along with related records PAFs, Appraisals, Work Injury, Job Descriptions, Requests for Reclassification, Recruitment -- While useful Duplicate of HR LEGISLATIVE HISTORY a) Agenda c) Minutes of Meetings PER PER GC 34090 Library Advisory Commission dissolved in 2020. SUBJECT FILES Customers, Circulation and Inventory Subscriptions and Licenses GC 34090 records are exempt from Public Records Act under certain conditions; GC Applications Awards Non-monetary Donations C+5 GC 34090 24 CFR 200.334 24 CFR 570.502 29 CFR 97.42 Department Opinion Project Files, Specifications, Contracts, Agreements, Equipment, Maintenance, Life of building Duplicate of Public Works City Council approved contracts duplicate of City Clerk Page 24 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 84  Packet Pg. 98 of 1138  City of Palo Alto Records Retention Schedule Library C = Current Year PER = Permanent TER = Termination S = Supersede C+2 GC 34090 Public Library Survey C+2 GC 34090 Daily Log, Cash Handling, Bank Deposits, Debt Collection Management C+2 GC 34090 Development and Administration of Programs for the Public C+2 GC 34090 Records documenting the selection and acquisition of new materials for the Library's collections and the physical movement of materials between C+2 GC 34090 PER GC 34090 Department Opinion Page 25 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 85  Packet Pg. 99 of 1138  City of Palo Alto Records Retention Schedule Office of Emergency Services C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATIVE RECORDS 1 DEPARTMENT MANAGEMENT General Order, Special Orders, Bulletins, Policies and Procedures S GC 34090 Employment Memorandum of Agreements While Useful GC 34090 Duplicate of Human Resources 2 DEPARTMENT PLANS PER Department Opinion C+2 GC 34090 3 GENERAL CORRESPONDENCE & REPORTS C+2 GC 34090 003c Keeping, Correspondence, C+5 GC 34090 004h Equipment Records TER+2 GC 34090 equipment's use; Manuals, instructions, procedures, assignments, EMPLOYEE FILES 006(a) Training records, certificates C+2 GC 34090 Duplicate of HR (TER+3, 29 CFR 1627.3) SPECIAL PROGRAMS 023(a) Disaster Service Worker: Emergency Services Volunteers All associated documents TER+30 2573.2, GC 3105, Required for injury claims Page 26 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 86  Packet Pg. 100 of 1138  City of Palo Alto Records Retention Schedule Planning and Development Services C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATION 001 Personnel Records, Purchase Orders, Payment Claim Vouchers, Legislation, Final Budget, Correspondence with Other Departments and While Useful GC 34090 002 ADMINISTRATION Department Procedures, Equipment, Inventories, Budget Preparation, and Final Budget Correspondence, C+2 GC 34090 003 a) Contracts under 85,000 plus all records associated b) Full Cost Recovery Contracts TER+4 TER+4 CCP 343 GC 34090 004 Fee Schedules, Orgs, List, Ordinance Binder, Planning LEGISLATIVE HISTORY 5 PLANNING COMMISSION, ARCHITECTURAL REVIEW BOARD, HISTORIC RESOURCES BOARD AND DIRECTOR'S HEARINGS a) Minutes b) Agendas and Packets c) Correspondence with Staff/Public - project based d) Proof of Agenda Posting PER PER C+2 Hardcopy format, Boards - Summary. PTC – Verbatim Agendas duplicates of City Clerk SUBJECT FILES 6 COUNTY OF SANTA CLARA GC 34090 Duplicate of Santa Clara County Page 27 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 87  Packet Pg. 101 of 1138  City of Palo Alto Records Retention Schedule Planning and Development Services C = Current Year PER = Permanent TER = Termination S = Supersede 8 ENTITLEMENTS a) Applications b) Maps - Zoning, Tentative Subdivision, Preliminary Parcel, Comp Plan Land Use, et al c) Permit Extensions (currently a 2-yr window with a 1-yr extension) d) Record of Land Use Actions e) CEQA determinations, EIR, Negative Declarations PER PER C+2 PER GC 34090 Department Opinion Digital Format (stored offsite) Digital Format Saved Within Application files that are scanned into GIS/DOXview 10 HISTORIC INVENTORY PER 12 COMPREHENSIVE PLAN AND AMENDMENTS PER GC 34090 backup w/ Amendments 13 a) Project Files TER+5 24 CFR Part 570 2 CFR 200.334 Manual, Chapter 10 https://www.hcd.ca.gov/grants-and- funding/programs- active/community-development- C+3 C+3 GC 34090 individual home loans keep TER+5 24 CFR Part programs and labor standard PER GC 34090 Department Opinion C+2 GC 34090 DEVELOPMENT CENTER ADMINISTRATIVE RECORDS 1 Personnel Records, Safety Files, Purchase Orders, Payment Claim Vouchers, City While Useful GC 34090 Duplicate of other Departments Page 28 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 88  Packet Pg. 102 of 1138  City of Palo Alto Records Retention Schedule Planning and Development Services C = Current Year PER = Permanent TER = Termination S = Supersede Budget, Equipment and Facility Maintenance, Time Sheets, Correspondence with Other Departments and 2 C+2 GC 34090 Department Procedures, Equipment, Inventories, Budget Preparation, and Final 3 a) Contracts under $85,000 plus all records associated b) Full Cost Recover Contracts c) Contracts over $85,000 plus TER + 4 TER +4 TER +4 CCP 337 CCP 343 GC 34090 Duplicate of Administrative Services City Council approved contracts DEVELOPMENT CENTER SUBJECT FILES Address changes, Permit applications, Building Use & Occupancy applications and certificates, Department Information System (GIS) or Accela Survey letters, Special inspection –final inspection reports, SB407 certificate of compliance forms, Stop work H&S 19850 7 CODE ENFORCEMENT Complaints, inspections, photographs, violations, NOTE: Development Center Retention Schedule merged into Planning & Development Center Retention Schedule and transportation records merged into City Manager’s Office. Page 29 of 48 GC 34090 GC 34090 GC 34090 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 89  Packet Pg. 103 of 1138  City of Palo Alto Records Retention Schedule Police Department C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATIVE RECORDS 3 (a) Personnel Training S GC 34090 3 (a)(1) Lesson Plans C+15 GC 34090 3 (b) Personnel TER+7 GC 34090 3 (b)(1) Applicant Fingerprint Files TER+3 GC 34090 authorizing fingerprinting and background checks for City employment applicants, all license and permit applicants and 3 (c) Volunteer Files TER+2 GC 34090 003c Correspondence, Surveys, TER+5 GC 34090 CCP 337 003e Alarm Records C+2 GC 34090 correspondence, alarm permit applications/permits, false alarm notifications, false 001q Investigations – Documents relating to complaints or investigations in response to citizens’ complaints regarding members of the Department. a) Not sustained TER + 5 PC 832.5(b), EVC 1045, PC 801.5, PC 803(c), VC 2547 GC 12946 not evidence in any claim filed or criminal investigation, or part of any pending records request or litigation . TER = conclusion of 001k News Release C+2 GC 34090 the Investigatory file if 001t Administrative Citations TER+2 GC 34090 Parking/Traffic TER = conclusion of administrative review 001r PAPD Policy Manual S GC 34090 Living Document ANIMAL SERVICES RECORDS 001p C+10 GC 34090 Page 30 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 90  Packet Pg. 104 of 1138  City of Palo Alto Records Retention Schedule Police Department C = Current Year PER = Permanent TER = Termination S = Supersede issued. 6.28.030 FAC 32003(e), 10 Animal Licenses C+2 GC 34090 001n C+2 GC 34090 COMMUNICATION RECORDS 1 (a) 911 Recordings (b) Other Phone Recordings, not on 911 lines C+2 years and 1 day GC 34090.6 flagged as evidence in a criminal prosecution or litigation hold request received shall be preserved for 100 days after conclusion of the court action, or as needed. System programed to re- 003f C+2 flagged as evidence in a criminal prosecution or litigation hold request received shall be preserved for 100 days after conclusion of the court action or as needed. System programmed to re- DAR - Digital Audio Recordings 003g Interior Video Recordings AIB or ISD when initiated C2 GC 34090.6 PC 1054 flagged as evidence in a criminal prosecution or litigation hold received shall be preserved for 100 days after conclusion of the 003h 100 Days GC 34090.6 INVESTIGATIVE RECORDS Document Imaging) System and supporting hard copy Reports C+100 ODI system from 6-15-92 to 12-31-06. Unless report is a Permanent Record or ordered Sealed by Court PC 799 Page 31 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 91  Packet Pg. 105 of 1138  City of Palo Alto Records Retention Schedule Police Department C = Current Year PER = Permanent TER = Termination S = Supersede 001e – All Felonies, high Misdemeanor cases. C +100 PC 800 PC 801 PC 799 (Felony Capital Crimes punishable by Death, Life Imprisonment ) PC 1054 will be kept in conjunction with PDF Prosecution for an offense punishable by imprisonment in state prison for 8 years or more must commence within 6 years after offense commission. Commencement of prosecution defined in PC 804. *Exception: PC 803 – Tolling/Extension of time periods; Appeals process - - 001f Reports/PDF Scanned – Lost/Found Property, Injured or sick persons; missing persons where person has returned; traffic collision reports not used as the basis C+10 GC 34090 Starting 2007 Reports will be scanned to PDF. Any CLETS entry must be canceled prior to purge if applicable. 12-1-2021 – all reports scanned as PDF 001v Arrest/Conviction HS Section 11357 (b), (c), (d), (e) or H&S Section 11360 (b) violations – Occurring after January 1, 1996 Mandatory destruction from date of conviction or date of arrest with no conviction HS 11361.5 occurring after 1-1-1996 or arrests not followed by a conviction occurring after 1-1-1996; Exception: H&S 11357(e), the record shall be retained until a juvenile offender attains 18 years of age – then destroyed 001e 001e (Misdemeanor low Felony) and C+15 FC 6228(d) GC 34090 CLETS, no suspect or open MISC REPORTS AND DOCUMENTS Page 32 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 92  Packet Pg. 106 of 1138  City of Palo Alto Records Retention Schedule Police Department C = Current Year PER = Permanent TER = Termination S = Supersede 004b Court Liaison Tracking Systems C+5 GC 34090 Logs, Informal Discovery requests and Correspondence. Formal Discovery scanned to 004c Subpoenas (Duplicate) C+2 GC 34090 (SDT) filed with case Report once completed if 004d Statistical – Crime Analysis and other reports C+2 GC 34090 information using activity logs, citizen requests, . Reports created for a variety of purposes. Some original reports sent to DOJ 004f Sealed – Adult /Factual Innocent Mandatory Destruction upon and pursuant to Court Order PC 851.8 PC 851.91 and PC 851.92. Does not include letter of finding sent to the defendant for 001j Restraining Orders C or until S enforcement actions described in PC 273.5, 273.6, 646.9, 12028.5, 13700 and Family Code Sections 6380-6383 are fulfilled and effective date of Restraining Order has 001g Traffic Citations (copies) C+2 GC 34090 forwarded to court, citation records are sent electronically to the court. Agency copy kept for processing. Parking Citations forwarded to 004h PAS Records and Radar Calibration Logs, Weapons Records, ALPR Stats; Flock and TER+2 GC 34090 f 004i License/Permits C+2 GC 34090 Special Events, Block Party, Taxi, Masseuse. No longer Page 33 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 93  Packet Pg. 107 of 1138  City of Palo Alto Records Retention Schedule Police Department C = Current Year PER = Permanent TER = Termination S = Supersede expired applicant date are sent to Santa Clara Co DA’s office for review of extension of warrant/ Active case or purge. All CLETS/AWS systems must (2)Misdemeanor Misdemeanor – C+7 PC 799 (3)Infraction Infraction – C+7 PC 800/801 004l C+2 GC 34090 The destruction of felony, misdemeanor, and infraction Crime/Supplemental Reports is permitted providing: (1)They do not relate to an unadjudicated arrest except for HS 11357 or HS 11360 violations; (2)They do not relate to unserved warrants; (3)They do not involve identifiable items which have not been recovered; (4)The do not relate to PC 290, PC 457.1, or HS 11590 Registrants; (5)They do not relate to violations listed in PC Sections 799 and PC 800; (6)The cases are not presently involved in either a civil or criminal litigation. Page 34 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 94  Packet Pg. 108 of 1138  City of Palo Alto Records Retention Schedule Public Works Series Description Total Retention Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATION 1 Duplicate of Human Resources 1 awarded by PW Department, except construction/capital TER+4 CCP 337 CCP 343 AIRPORT useful CCP 337 1 PER 2 a) Project Files, Work Orders, Schedules, Bidders List, Correspondence, Change Order b) Specifications, Reports Plans, PER H&S 19850 GC 4003 Life of Structure 2 Correspondence Membership Information C+2 GC 34090 Applications PER 2 CFR 200.334 Department Opinion Daily, Weekly, Monthly, C+4 GC 34090 Federal Aviation Administration (FAA) Evaluations Personnel Action Forms S+5 Code Section Duplicate of HR Applications Payments/Receipts Log PER ENGINEERING SERVICES PER PER GC 34090 007 011 a)Project Files, Work Orders, Schedules, Bidders List, Correspondence, PER H&S 19850 GC 4003 Life of Structure Page 35 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 95  Packet Pg. 109 of 1138  City of Palo Alto Records Retention Schedule Public Works Series Description Total Retention Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede Contracts and Subdivisions 10 ENCROACHMENT PERMITS a)Permanent Encroachments b)Temporary Encroachments PER C+2 GC 34090 11 Elevation Certificates & Letter PER GC 34090 12 S GC 34090 Keep current map version only 13 Evaluations Personnel Action Forms S Duplicate of HR 14 C+2 GC 34090 15 SOIL REPORTS PER 17 a) Agreements PER GC 34090 Keep current map version only 18 PER GC 34090 ENVIRONMENTAL SERVICES 20 Discharger permits and permit support documents expiration or facility closure + 3 40 CFR Federal Pretreatment Regulations C+12 Federal Pretreatment Regulations WATER QUALITY CONTROL PLANT 35 PER Department Opinion 36 Flow Strip charts, Instrument Calibrations, Operations, Maintenance & Laboratory Records, & Crane Maintenance and Certification, State C+4 Department Opinion 37 Discharge Elimination System) – PER 40 CFR 122.28 Department Opinion Page 36 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 96  Packet Pg. 110 of 1138  City of Palo Alto Records Retention Schedule Public Works Series Description Total Retention Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede 38 Pressurized Vessels, Air & TER+4 GC 34090 39 C+4 GC 34090 40 C+4 GC 34090 Department Opinion 41 Accident report, accident investigation, or other personnel event resulting in TER+30 Department Opinion Duplicate of HR ZERO WASTE Assignments and Maintenance C+5 GC 34090 PER C+10 Department Opinion C+10 Department Opinion SUSTAINABILITY C+10 GC 34090 Department Opinion EQUIPMENT MANAGEMENT 21 C+2 GC 34090 22 DMV Requirement FACILITIES MANAGEMENT 23 Contracts City Manager Reports Specifications Bidders List Change Orders Payment Files TER+4 C+2 GC 34090 CCP 337 CCP 343 24 CAPITAL IMPROVEMENTS a) Project Files, Work Orders, Schedules, Bidders List, Correspondence, Change Order PER 19850 GC 4003 CCP Department Opinion Page 37 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 97  Packet Pg. 111 of 1138  City of Palo Alto Records Retention Schedule Public Works Series Description Total Retention Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede Contracts and Subdivisions 25 C+2 GC 34090 26 Division Staff Schedules Personnel Action Forms TER Code Section Originals to HR, copy kept in individual’s file until employee termination 27 Quarterly Summary of maintenance labor and material C+2 GC 34090 29 Labor and Material Tracking Key Requests C+2 GC 34090 STREETS/SIDEWALKS/STORM DRAIN 30 26 32 25 Operator assignments & equipment status Storm Drain C+5 GC 34090 33 plans, pesticide spraying, C+2 GC 34090 34 Streets, sidewalk, signs, C+5 GC 34090 35 Urban Forestry C+2 GC 34090 Page 38 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 98  Packet Pg. 112 of 1138  City of Palo Alto Records Retention Schedule Utilities Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede ADMINISTRATIVE RECORDS 001 Working Files, Operating & Safety, Staff Meetings, Correspondence, Budget Change Requests, Journal Entries Shipping Receipts, Depreciation, C+2 GC 34090 WGW Ops Stand-by/Call Out Time Report Shipping records Internal vs. C+2 C+2 C+2 Department Opinion SUBJECT FILES 002 , Marking Requirements, Engineering Standards, Electric Service Requirements, Cable Specs, Forms, Best Management S+2 GC34090 Department Opinion 003 Drivers License Records Duplicate of DMV CONTRACTS 005 CCP 337 Construction PER CCP 337.15 S+7 Renewable Energy Certificate Master Agreement S+7 Dept. Opinion for retention in and/or Confirmation Agreements -- including supporting documentation (deal sheet, shopping sheet, authorization TER+7 CCP 337 Retained in Utilities Dept. Bilateral Commodity and/or related service agreements TER+7 authority, then retained in Utilities Dept. If Council approved, retained in City PROJECT FILES Page 39 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 99  Packet Pg. 113 of 1138  City of Palo Alto Records Retention Schedule Utilities Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede RATES REPORTS 009 consumption analysis and C+2 GC 34090 UTILITY ADVISORY COMMISSION 010 Agenda Proof of Posting Minutes of all meetings General Correspondence Proof of Agenda Posting PER C+2 C+2 Agendas Duplicate of City Clerk TASK FORCE 011 C+2 GC 34090 011 C+2 GC 34090 REGULATIONS 013 National Gas Act Pipeline Safety Act Natural Gas Policy Act CVPIA While Useful C+2 C+2 C+2 Duplicate of Other Agency CVPIA = Central Valley Project Improvement Act STUDIES - SURVEYS 014 Distribution Electro Magnetic Field Survey and Energy Case Studies C+2 GC 34090 CUSTOMER SERVICES 015 C+2 Department Opinion 015 Service: GC 34090 All listed will be scanned and retained electronically • C+3 • C+3 • PER • PER Page 40 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 100  Packet Pg. 114 of 1138  City of Palo Alto Records Retention Schedule Utilities Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede • Utilities Account Change C+3 • Make Change to Account C+3 • Account Closure Request C+3 • Close Utilities Account C+3 • Revert to Owner Request PER • Revert to Owner Application PER 015 Demolition Request Demolition Application Temporary Power Temporary Power Application Hydrant Water Application Hydrant Meter Application C+3 C+3 C+2 C+2 C+2 C+2 Department Opinion Department Opinion 015 Billing • Consumption Adjustment • Correct Misread and Billings • Miscellaneous Adjustment • Apply Credit or Debit • Invoice Cancellation • Cancel Rebill Invoice • PV Statements • Monthly PV Status C+2 C+2 C+2 C+2 C+2 C+2 C+2 All are created and saved on electronic templates 015 Credit & Collections • Rate Assistance • Annual Application Renewal • Project Pledge • One time Submission • Bankruptcy • LIHeap • LIHeap send discs C+2 C+2 PER PER C+3 C+2 Department Opinion LIHeap = Low Income Home Energy Assistance Program 015 C+2 Department Opinion • • • • • • CONSTRUCTION Page 41 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 101  Packet Pg. 115 of 1138  City of Palo Alto Records Retention Schedule Utilities Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede 016 Drawings, Specifications, Photos, Permits, Soil Reports, Correspondence, Quotes, PER GC 34090 Historical As-Built Maps Valve Cards PER California Department of Transportation Abandoned Pipe As-Built Maps of Abandoned Pipe PER Department Opinion C+5 Department Opinion REGULATORY AGENCIES 017 • Federal Register C+2 GC 34090 • U.S. Dept of Energy • PG&E • (e.g. Public Utilities • • REGULATORY RECORDS Sanitary Sewer Overflow (SSO) Reports Sanitary Surveys C+5 C+10 40 CFR 141.33 RWQCB Statistics, reports, Water Discharge Form Water Discharge Monitoring C+5 40 CFR 122.41 Annual Report for Public Works Storm Water Department Device Locations, and Water PER GC 34090 Compliance documentation Average amount of pollution discharged into waters Compliance documentation • Corrosion Control C+12 40 CFR 141.91 • Discharge Monitoring C+5 40 CR 141.91 • Drinking Water Corrections C+10 40 CFR 141.33 Lead Service Line C+12 40 CFR 141.91 SUP GC 34090 Page 42 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 102  Packet Pg. 116 of 1138  City of Palo Alto Records Retention Schedule Utilities Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede Underground Utility Locating C+6 CAGC Title 1 Division 5 Chapter 3.1 Article 2 Section 4216 C+2 GC 34090 Cathodic Work Orders Cathodic Protection with Gas Distribution Map Exposed Pipe Reports Steel Pipeline Tapping Coupon Records Annual Report to DOT Emergency Response Plan Operations and Maintenance PER PER PER TER+5 C+5 C+5 C+5 California Department of Transportation EMPLOYEE TEST RECORDS Gas Operator Qualification C+5 Employee Water Distribution Certification Employee Water Treatment Certification Employee Backflow Certification Employee Cross Connection Certification C+3 C+3 C+3 State Welding Record (form 225A) PER TESTS/INSPECTIONS/SURVEYS FSR Gas Leak Investigations (818 Form) FSR Stop Card Database Gas Shop Stop Card Water Shop Stop Card C+7 PER PER PER California Department of Transportation Odorant and Oil Drip Water Meter Test Results Gas Meter Test Results Meter Leak Tags Abnormal Operating Conditions PER PER PER PER PER California Department of Transportation Page 43 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 103  Packet Pg. 117 of 1138  City of Palo Alto Records Retention Schedule Utilities Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede Water Quality-Water Sources: • Testing • Fluoride Summary • Ground Water Elevation • Bacteriologic Analysis • Chemical Analysis • Reservoirs, Wells & Rainfall Gauge C+10 C+5 Title 22 CCR 66261.24(a)(7) 40 CFR 141.33 State Program CPAU WGW Operations Pre- Tested Pipe Tag (Form 503) CPAU WGW Operations Grade 1 Log Re-Checks PER C+5 California Department of Transportation 019 Equipment Records GC 34090 019 Regulating Specifications & Testing Gas Leakage Survey Meter Leak Tag AOC CPAU/WGW Operations Pre- Tested Pipe Tag Gas/Water Shop Stop Card Odorant & Oil Dip Valve Cards Valve Cards of Abandoned Valve Welding Record PER Form 503 Form 225A ELECTRIC UTILITY 052 048 Distribution, Street Light Block, C+2 GC 34090 Duplicate stored offsite as vital copy backup Maps: Electric Distribution, Pole Test Block, Distribution Block, Street Light Block, Hardware and Coax while active,+ 2 years off Transmission Line Logs & Correspondence C+2 GC 34090 Work Orders: PER Department Opinion Page 44 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 104  Packet Pg. 118 of 1138  City of Palo Alto Records Retention Schedule Utilities Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede 055 051 Specs, Permits, Correspondence quotes, Payments & Schedules PER Department Opinion - Historical 056 Electric Vehicles: Power Delivery Records Vehicle +2 GC34090 C+2 GC 34090 C+2 ELECTRIC OPERATIONS 059 • Field Switch/Man on Line Logs • Overhead/Underground Compliance Records • Underground Service Alert Notices a. Completed Tickets PER PER C+6 C+1 on site C+1 on site 060 Dispatch Logs PER Electronic copy on S drive 061 Notifications – SL & TS C+6 SAP. Mark-up records 062 055 a) Equipment (transformers, switches, breakers, capacitors, relays) • Specifications • Inspection • Inventory • Replacement • Disposal Life of Equip +2 Department Opinion Duplicate stored offsite as vital copy backup 062 055 b) Operations (troubleshooting, line logs, load reports, power C+6 18 CFR Sections 125.3(23) & 125.3(26) equipment test records stored electronically on F:drive 064 055 c) Relay and fuse curves, fault current, calculations, supervisory C+2 GC 34090 Duplicate stored offsite as vital backup copy Page 45 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 105  Packet Pg. 119 of 1138  City of Palo Alto Records Retention Schedule Utilities Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede and Control Information MARKETING SERVICES 061 064 Water Heating Program -1990 -- files at The State Agreements C+2 C+2 C+2 C+2 C+2 C+2 C+2 C+2 C+2 C+2 C+2 C+2 C+2 GC 34090 Department Opinion Department Opinion Department Opinion Council approved contracts duplicate of City Clerk 062 066 3rd Pary Programs Monthly/quarterly/annual TER+4 CCP 337 Department Opinion 063 066 Reports BI Reports Pcard receipts C+2 C+2 GC 34090 Department Opinion 067 Program marketing materials Customer Workshops & Facility C+6 C+2 Department Opinion SUPPLY RESOURCE GROUP 070 Settlement Date Commodity Invoices/payment records TER+2 PER Keep for two years past contractual limitation of 071 Regulatory Reference Materials (e.g. – laws, ruling, orders, court cases, settlements) While Useful Duplicate of Other Agency Page 46 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 106  Packet Pg. 120 of 1138  City of Palo Alto Records Retention Schedule Utilities Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede Risk Management FO and BO Transaction oversight Monthly BO reports FO and BO Quarterly reports FO Weekly Reports C+6 Department Opinion 078 Rates Documents Rates/Pricing Cost of Service Studies S+7 080 Long-term Electric Acquisition Plan, Gas Long-Term Plan, Water S+2 Department Opinion Adopted plans duplicate of City Manager Commodity Costs Protections & Uncertainty Assessment - load and resource balance - supply costs - transmission cost - interconnection - agency costs - hydrology - plant operation and maintenance C+7 for annual budget models Maintained in electronic models - overwritten as necessary Procurement Plans -- Needs Analysis Load/Resource Balance Targets C+5 Department opinion C+7 Department Opinion verifying agencies such as The Climate Registry for GHG Inventory and for Carbon Neutral verification agencies such as PET Projects related C+6 Department Opinion Page 47 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 107  Packet Pg. 121 of 1138  City of Palo Alto Records Retention Schedule Utilities Statutory Reference Remarks C = Current Year PER = Permanent TER = Termination S = Supersede Analysis of plans, programs, and policies that become adopted by S+2 Department Opinion Page 48 of 48 Item 2 Attachment C - 2025 Records Retention Schedule - Clean        Item 2: Staff Report Pg. 108  Packet Pg. 122 of 1138  City Council Staff Report From: City Auditor Report Type: CONSENT CALENDAR Lead Department: City Auditor Meeting Date: June 16, 2025 Report #:2506-4782 TITLE Approval of Office of the City Auditor Emergency Preparedness: Wildfire Audit Report as Recommended by the Policy & Services Committee RECOMMENDATION Policy and Services Committee and the City Auditor recommend City Council approve the BakerTilly Emergency Preparedness: Wildfire Audit Report. EXECUTIVE SUMMARY Palo Alto, like many communities in California, faces increasing wildfire risks due to climate change, prolonged drought, and human activity in the wildland-urban interface (WUI), and this report is one item in a series of a series of public engagement and public meetings to raise awareness of local wildfire risks and the importance of wildfire preparedness. The Policy & Services Committee reviewed the attached report and discussed recent wildfire preparedness activities underway and new items such as the newly released wildfire maps released by the California Fire Marshal and transmits an audit on wildfire preparedness completed by BakerTilly, the City’s Auditor. The Committee on April 8, 2025 unanimously recommended Council approval of the audit. The audit conducted by BakerTilly reviewed the current wildfire protection plans implemented by the City and evaluated their effectiveness in mitigating wildfire risks and ensuring adequate emergency response. The audit identified areas for improvement in evacuation planning and enhancing community engagement. BACKGROUND Baker Tilly, in its capacity serving as the Office of the City Auditor (OCA), performed a citywide risk assessment that assessed a wide range of risk areas, including strategic, financial, operational, compliance, technological, and reputation risks. The purpose of the assessment was to identify and prioritize risks to develop the annual audit plan. Recognizing the need for an independent assessment of the City's wildfire preparedness, BakerTilly conducted an audit in alignment with its 2024 Risk Assessment and subsequent Council approved workplan. Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 1  Packet Pg. 123 of 1138  After the January 2025 southern California wildfires, the Policy & Services Committee agenda item was expanded to discuss two parts, 1) Wildfire Preparedness Activities and 2) Summary and Response to the Emergency Preparedness – Wildfire Audit (conducted in 2024, prior to the recent events). Recognizing the importance of communications, education, and preparation, in collaboration with the City Auditor, this expansion was in alignment with the launch of a series of items to raise awareness of local wildfire risks and the importance of wildfire preparedness. ANALYSIS FISCAL/RESOURCE IMPACT Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 2  Packet Pg. 124 of 1138  STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 3  Packet Pg. 125 of 1138  March 31, 2025 City of Palo Alto Office of City Auditor Emergency Preparedness - Wildfire Audit Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 4  Packet Pg. 126 of 1138  Contents network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. EXECUTIVE SUMMARY ................................................................................................. 1 INTRODUCTION ............................................................................................................. 4 DETAILED ANALYSIS ................................................................................................... 7 AUDIT RESULTS ............................................................................................................ 9 APPENDIX A MANAGEMENT RESPONSE MATRIX ......………………………………..25 Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 5  Packet Pg. 127 of 1138  Executive Summary Purpose of the Audit Baker Tilly Advisory Group, LP (Baker Tilly), in its capacity serving as the Office of the City Auditor (OCA) for the City of Palo Alto (the City), conducted an Emergency Preparedness – Wildfire Audit based on the approved Task Order 4.25. The objective of this audit was to determine whether the City is working to prevent wildfire and adequately prepared to respond to wildfire as part of the City’s emergency management plan. Report Highlights (Page 13) programs aimed to prevent and mitigate wildfire risks; we noted some areas for improvement including enhancing community outreach and engagement. • The City of Palo Alto Utilities Department (CPAU) has made significant investments to reduce wildfire risk o Undergrounding distribution lines – the City is in the process of undergrounding its main distribution line in the Foothills high-risk area to reduce the potential for wildfire caused by damaged or downed lines. o Installing weather stations – to collect localized weather data to share with first responders. o Public Power Shutoff Procedure – provides guidance for when to de- energize lines when needed to reduce wildfire risk and communicating information to the public. o Formalizing Utility Infrastructure Maintenance Program – CPAU is in the process of formalizing its utility infrastructure maintenance program which will help guide and prioritize the utilities maintenance efforts o Use of FLIR cameras – to detect electrical hotspots and areas that may require maintenance • The City has several programs to address vegetation management and improved tracking efforts may increase compliance o Line Clearance Program – this program is managed by the Urban Forestry division of the Public Works Department in collaboration with CPAU and ensures vegetation is cleared from electrical equipment and utility lines. OCA noted areas to improve documentation of work scheduled and performed and overall program guidance o Property inspections in the Wildland Urban Interface (WUI) help ensure properties in high-fire danger areas are cleared of vegetation that could potentially fuel a wildfire. OCA noted areas for improved tracking and follow-up for properties that are in violation of the City’s code. • While the City has partnered with CAL FIRE and is included in Santa Clara County’s Community Wildfire Protection Plan, community involvement could Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 6  Packet Pg. 128 of 1138  EXECUTIVE SUMMARY wildfire resilience and promotes collaboration between residents, fire departments and other stakeholders. • Community education and outreach could be enhanced by policies and procedures to guide efforts and track and measure their effectiveness. Key Recommendations We recommend the City consider the following improvements to enhance its wildfire prevention efforts: 1. Continue efforts to underground Wildland Urban Interface (WUI) distribution infrastructure and prioritize, as appropriate, maintenance and possible replacement of the oldest utility poles should they remain in place. 2. Line Clearance policy documents should be established and or reviewed, updated and finalized (e.g. Draft Tree and Landscape Technical Manual 3. Continue efforts to better track and monitor property violations in the WUI to enhance enforcement. 4. Prioritize efforts to establish a Firewise Community including stakeholder engagement throughout the process 5. Formalize the contract with CAL FIRE to ensure service provision continues into the future. 6. Ensure wildfire education and outreach plans document coordination efforts between the Office of Emergency Services (OES), Fire and CPAU to ensure information is consistently and regularly provided to residents. (Page 15) Overall, the City has a strong emergency response plan but should consider if improvements can be made to evacuation planning, after action report recommendation implementation, and communication efforts. • The City has a comprehensive set of emergency response and wildfire plans, but should consider if evacuation plans could be enhanced and some plans may require updating and review. o Overall, OCA found that the City’s plans align with the majority of Federal Emergency Management Agency (FEMA) guidance; however, they would be strengthened by incorporating a more comprehensive revision history and an enhanced review process to ensure that plans are regularly reviewed and updated. In addition, while the Foothills Fire Management Plan (FFMP) addresses evacuation routes and ensuring these routes remain clear for emergency personnel as well as residents for evacuation, we recommend the City consider additional planning activities based on the U.S. Department of Homeland Security’s, Planning Considerations: Evacuation and Shelter-in-Place; Guidance . Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 7  Packet Pg. 129 of 1138  EXECUTIVE SUMMARY • implemented a new sign-in process to improve tracking. • While the City conducts training and after-action reports (AAR) after critical incidents, efforts to track and implement resulting recommendations could be improved. • The City is enhancing its wildfire detection capabilities through the use of gas monitoring sensors deployed in the Foothills area. • The City employs several methods for communicating critical information to its residents during an emergency and should continue to explore methods to increase participation in the County’s emergency alerting system. o Based on the alert system sign-up data provided and Santa Clara County, 17% of Palo Alto residents were registered in the system in 2025. • While the City has strong relationships with their mutual aid agreement partners 1, the City does not maintain these agreements in a central repository for easy tracking and monitoring. Key Recommendations We recommend the City consider the following improvements to enhance its Wildfire response efforts: 1. The City’s emergency plans align with the majority of FEMA guidance; however, they would be strengthened by incorporating a more comprehensive revision history and an enhanced review process. The City should also review its evacuation plans and consider if plans could be enhanced by reviewing best practices in other cities such as establishing evacuation locations and sheltering agreements with neighboring communities. 2. City management should more formally track and monitor findings and recommendations identified during training exercises and in AARs of emergency incidents to ensure needed improvements are made and issues are timely resolved. 3. Continue to explore ways to increase resident registration in the County’s emergency alerting system. Opportunities may include partnering with schools, homeowner associations, and local businesses to disseminate wildfire education materials and encourage participation in City programs and the County’s emergency alert system. 4. Determine an appropriate solution for staff to more easily access, track and monitor the status of all mutual aid agreements, including active dates, renewal deadlines, and responsible contacts for updates. For example, a centralized tracking system for mutual aid agreements would provide clarity on the status of each agreement, preventing lapses in mutual aid coverage and ensuring that expired agreements are addressed promptly. 1 Mutual aid partners include Los Altos Hills, Santa Clara County, Woodside, Mountain View, and the California Department of Forestry and Fire protection. Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 8  Packet Pg. 130 of 1138  Introduction The objective of this audit was to determine whether the City is working to prevent wildfire and adequately prepared to respond to wildfire as part of the City’s emergency management plan. Background change, historical land management practices, human activities, and ecological shifts, all of which impact cities like Palo Alto that are situated near high-risk wildland-urban interface (WUI) zones. Climate change has intensified the state’s wildfire risk by driving higher temperatures, wind speeds, and drier conditions, which extend the fire season and increase the probability of fires. Historical land management practices, including the suppression of indigenous fire management techniques and aggressive fire suppression policies in the 20th century, have led to an accumulation of vegetative fuels. Additionally, logging practices have left denser forests prone to more intense fires. Human activities— ranging from infrastructure failures to recreational fires—are the primary sources of ignition, particularly as urban areas expand into WUI zones, increasing both the human and economic impact of fires. In response to wildfire risks, the City of Palo Alto’s Office of Emergency Services (OES), Fire Department, and City of Palo Alto Utilities (CPAU) are all actively engaged in wildfire preparedness, prevention, and response efforts, coordinating resources and community education initiatives to address these risks. The City works closely with CAL FIRE, regional partners, and neighboring cities to implement and refine emergency response plans, ensure effective evacuation routes, and conduct community outreach on wildfire preparedness. Recognizing the need for a multifaceted approach to wildfire mitigation, the City supports initiatives that promote sustainable land management practices, encourages defensible space in WUI zones, and advocates for policies to reduce human- caused ignitions. By fostering partnerships and promoting proactive wildfire safety measures, Palo Alto is dedicated to enhancing the city’s resilience against the growing threat of wildfires in California. The following table provides an overview of the City’s various planning documents related to wildfire preparedness and response, as well as their purpose and when they were last updated. Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 9  Packet Pg. 131 of 1138  INTRODUCTION Table 1: City Emergency Preparedness Plans Title Purpose Date Emergency Operations Plan Basic Plan (EOP) The EOP embraces the FEMA "whole community" approach. According to the EOP, the City has undergone multiple hazard analysis processes per the FEMA Comprehensive Preparedness Guide 201. The EOP also states the City actively manages training activities and allocates funding in relation to fluctuating needs, personnel turnover, and course availability. January 2016* Emergency Operations Center Manual (EOC) The EOC wildland fire response is primarily addressed through the EOC activation, the plan's emphasis extends beyond immediate response to a broader, proactive strategy. According to the EOC the City prioritizes comprehensive hazard analysis and ongoing training aligned with state and national standards such as ICS, SEMS, and NIMS. July 2021 Wildland Urban Interface (WUI) Fire Response An annex to Palo Alto’s EOP, focusing on WUI fire response. It aligns with state and national emergency management systems (SEMS and NIMS). The primary goals are to guide initial response planning, support the development of incident plans, and ensure coordinated interagency actions. August 2023 Local Hazard Mitigation Plan (LHMP) The LHMP is part of the larger Santa Clara Operational Area Hazard Mitigation Plan and has a Palo Alto Annex. The LHMP details potential hazards for Palo Alto and provides recommended action on the hazards. October 2024 Foothills Fire Management Plan (FFMP) The FFMP focuses on mitigating wildfire risks in the Foothills area through targeted vegetation management and strategic planning. The document highlights accomplishments since the initial 2009 plan, including improved evacuation routes, prescribed burns, and reduced fire hazards near critical infrastructure. The update emphasizes ongoing efforts like annual maintenance of treated areas, collaboration with regional agencies, and leveraging funding opportunities. The plan includes post-treatment fire behavior analysis, showcasing how vegetation management efforts have improved emergency access and reduced the likelihood of wildfire spread. January 2017 CPAU Wildfire Mitigation Plan caused by electric lines and infrastructure. Key strategies include undergrounding power lines in high-risk areas, such as the Foothills region, updating Public Safety Power Shutoff (PSPS) protocols, enhanced vegetation management, and the use of advanced technologies like non-expulsion fuses and remote deenergization switches. The plan emphasizes collaboration with other departments, such as Fire and Urban Forestry, to ensure comprehensive wildfire prevention efforts. Regular inspections, vegetation clearance exceeding regulatory standards, and continuous monitoring are highlighted as critical components. The plan includes performance metrics to track the effectiveness of mitigation efforts, ensuring proactive adjustments where needed. June 2024 Santa Clara County Community Wildfire Protection Plan (CWPP) The Santa Clara County CWPP aims to reduce wildfire risk by establishing cooperative relationships with federal, state and local stakeholders before an event occurs and developing pre-attack plans to enhance firefighter readiness and safety. The CWPP includes annexes which offer information and project recommendations specific to geographical planning areas. The City of Palo Alto is included as an annex. Communities are currently updating their annex plans. August 2016 Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 10  Packet Pg. 132 of 1138  INTRODUCTION 2 Government auditing standards require an external peer review at least once every three (3) years. The last peer review of the Palo Alto Office of the City Auditor was conducted in 2017. The Palo Alto City Council approved a contract with Baker Tilly U.S., LLP for internal audit services for October 2020 through June 2022 with an extension through June 2025. City Council appointed Kate Murdock, Audit Manager in Baker Tilly’s Risk Advisory practice, as City Auditor in May 2024. As a result of transitions in the Audit Office and peer review delays due to the COVID pandemic, an external peer review is targeted for 2025. It should be noted that Baker Tilly’s most recent firmwide peer review was completed in October 2021 with a rating of “Pass”. The scope of that peer review includes projects completed under government auditing standards. A report on the next firmwide peer review should be available later in 2024. Scope The OCA evaluated the City’s plans and efforts related to wildfire prevention and preparedness by assessing related activities and internal controls from FY2023 through FY2024 in the OES, Fire Department, and CPAU. Methodology • Interviewed the appropriate individuals to understand the roles and responsibilities, processes, and controls related to Emergency Preparedness (Wildfire) activities. • Analyzed current policies and procedures (P&P) as well as FEMA and CAL FIRE standards and best practices. • Evaluated relevant documents such as City of Palo Alto EOC Manual, CPAU Wildfire Mitigation Plan, FFMP, and various other plans • Gathered information and reports to assess if current City plans are sufficient in preventing and responding to wildfire risks. • Inquired with OES departments for clarification and understanding of emergency plans. • Completed audit report of findings, conclusions, and recommendations based on the supporting evidence gathered Compliance Statement accordance with generally accepted government auditing standards, except for the requirement of an external peer review 2. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. Organizational Strengths demonstrated by the Emergency Preparedness team. We also observed their willingness to provide and receive feedback regarding the emergency preparedness process, which includes their receptiveness to process improvements. The OCA greatly appreciates the support of the Fire Department, Office of Emergency Services, City Manager’s Office, and City of Palo Alto Utilities Department in conducting this audit. Thank you! Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 11  Packet Pg. 133 of 1138  DETAILED ANALYSIS Detailed Analysis Emergency Preparedness & Response In its publication, Developing and Maintaining Emergency Operations Plans, FEMA highlights five key areas for communities to address related to Emergency Preparedness. These include: • Prevention – reducing risk from human-caused incidents • Protection – reducing or eliminating the threat to people and critical infrastructure • Response – actions taken in the immediate aftermath of an incident • Recovery – short-term and long-term efforts for rebuilding and revitalizing the affected community • Mitigation – structural and non-structural approaches to eliminating or limiting the hazards presence This audit report focuses on the first three areas as they relate to the audit objectives, but recognizes the City has efforts related to recovery and mitigation of wildfire risks too. Shared Community Preparedness themes Additional best practice information comes from the National Incident Management System (NIMS) and CAL FIRE. NIMS offers guidance on resource management, mutual aid, and communication during emergency events. CAL FIRE provides guidance and best practices for wildfire events specific to Fire Hazard Severity Zones (FHSZ), further described below. Guidance from FEMA, NIMS, and CAL FIRE all emphasize the importance of the following principles in preparing communities for emergencies including wildfires. Common themes include: • Community Engagement: Public education and participation are key to ensuring communities are informed and involved. • Response Coordination: Implementing reliable policies for consistent response across agencies and stakeholders is key to NIMS ICS framework and mutual aid strategies with FEMA’s planning and CAL FIRE’s interagency collaboration. • Training and Communication: Regular drills and clear communication protocols are critical to ensure preparedness and efficiency during emergencies. FEMA offers additional guidance related to wildfire emergency preparedness. FEMA's best practices, as highlighted in their publication Developing and Maintaining Emergency Operations Plans. These best practices include: • Risk Assessment and Planning: Conducting thorough risk assessments to identify potential wildfire hazards and developing comprehensive emergency plans that address these risks. Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 12  Packet Pg. 134 of 1138  DETAILED ANALYSIS • Public Information and Warning: Ensuring that timely and accurate information is provided to the public about wildfire risks, evacuation orders, and safety measures. NIMS offers important recommendations for departments handling wildfire emergencies. These best practices include: • Communication and Information Management: Implementing reliable communication systems and protocols to ensure timely and accurate information sharing during wildfire emergencies. • Incident Command System (ICS): Utilizing the ICS to coordinate response efforts and manage resources effectively during wildfires. CAL FIRE offers comprehensive guidance related to wildfire emergency preparedness. CAL FIRE's best practices provide essential recommendations for departments handling wildfire emergencies. These best practices include: • Fire Hazard Severity Zones (FHSZ): Identifying and mapping areas with varying degrees of fire hazard severity to prioritize resources and mitigation efforts. • Evacuation Planning: Developing and regularly updating evacuation plans to ensure that residents can safely and efficiently evacuate in the event of wildfire. Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 13  Packet Pg. 135 of 1138  Audit Results City Efforts to Prevent and Protect from Wildfire the City has made significant investments in and has strong programs aimed to prevent and mitigate wildfire risks; we noted some areas for improvement including enhancing community outreach and engagement. neighboring jurisdictions to prevent and protect the City and its residents from the risk of wildfire. These risk areas include utility infrastructure maintenance, vegetation management, and community outreach and education. CPAU has made significant investments to reduce wildfire risk CPAU provides electricity to the entire Palo Alto service area including the Foothills/Wildland Urban Interface (WUI) Area and prepares and submits a Wildfire Mitigation Plan to the California Wildfire Safety Advisory Board each year. CPAU has invested in several projects to reduce wildfire risk including undergrounding distribution lines and installing weather stations. The Utility has also developed a Public Safety Power Shutoff (PSPS) procedure. Undergrounding Distribution Lines CPAU began the Foothills project to underground distribution lines in the Foothills high-risk area in 2021. This project, which will be completed in summer 2025, includes the undergrounding of approximately 49,200 feet of distribution lines. The project includes undergrounding the main 12470- voltage distribution line as well as fiber optic cable. Utility distribution lines pose a significant wildfire risk and undergrounding these lines largely eliminates this threat as lines cannot be damaged by trees or high winds which can spark fires by falling on vegetation below. Based on information provided by CPAU, much of the overhead infrastructure within the Wildland Urban Interface (WUI), designated as the High Fire Threat Tier 2 zone, encompassing all city areas west of Highway 280, known as the "Foothills Area" will be undergrounded. As part of City’s wildfire mitigation strategy, CPAU has prioritized the undergrounding of its overhead infrastructure in the WUI/Foothills Tier 2 area. The Foothill Fire Mitigation Project includes the following key activities: • Substructure construction, including the installation of boxes and pad-mounted equipment • Cable pulling and line energization • Decommissioning of overhead poles and equipment According to CPAU, the Foothill Fire Mitigation Project is estimated to underground 182 of the total of 203 poles and overhead lines in the high-risk area. The estimated 21 remaining poles require additional coordination with pole attachers, and customers prior to either undergrounding or implementation of additional fire hardening measures. As of March 2025, CPAU management reported it has completely de-energized and undergrounded electric lines for 69 of the 182 poles, significantly reducing the wildfire risk associated with overhead power lines in the area. Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 14  Packet Pg. 136 of 1138  3 Red Flag Warning removed as part of the initial Foothill Fire Mitigation Project. Table 2: Age of Remaining Poles in WUI *Analysis conducted by the OCA in March 2025 The OCA saw a range of estimates on how long utility poles can last, anywhere from 35 to 75+ years depending on conditions and maintenance, which suggests CPAU should prioritize maintenance and possible replacement of the oldest poles should they remain in place. Additionally, CPAU is implementing a multi-year Grid Modernization initiative that will enhance grid resiliency and reliability of the electric distribution system by replacing poles, transformers, aerial wires, some cabinets and underground substructure. The initiative also includes upgrades to two of their substations, with a target completion by 2032. Weather Station Installation CPAU installed weather stations in the Foothills area and at the Utility Control Center to collect localized weather data which is shared with first- responder departments to determine if any actions are needed due to conditions. The Utility also monitors regional conditions and receives red flag warnings which signal when fire conditions are heightened 3. Public Safety Power Shutoff Procedure CPAU has a Public Safety Power Shutoff procedure which provides Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 15  Packet Pg. 137 of 1138  4 California Public Resources Code Section 4293 Residents in the Foothills area are notified via email when de-energization is anticipated and are typically provided with dates and shutoff times. Forward Looking Infrared (FLIR) Cameras In addition to visual inspections, CPAU utilizes FLIR Cameras which are used to detect hotspots where electrical equipment could be overheating and treat areas before they become a problem. This use of technology helps enable the City to proactively address maintenance issues. The City has several programs to address vegetation management and improved tracking of efforts may increase compliance Wildfires and their spread are dependent on several conditions, such as fuel load or the accumulation of vegetation, as well as weather conditions which determine their severity. The City has several programs and resources dedicated to managing vegetation including resident assistance programs. These programs include: • Line Clearance Program • Right Tree Right Place • Property Inspections in the Wildland Urban Interface • Santa Clara Fire Safe Council CAL FIRE Line Clearance Program The City’s Line Clearance Program ensures vegetation is cleared from electrical equipment and utility lines, patrol to ensure access roads to facilities remain clear, and right-of-way clearing. The Program, typically completed via a contract with the Fire Safe Council (FSC), is managed by the operations division of the Public Works Department in the absence of a contract with FSC and in collaboration with CPAU. The City’s aim is to maintain a 10-foot clearance from trees in the Foothills area which is in accordance with California law 4 and the California Public Utilities Commission. According to the City’s Tree Management Plan and interviews with staff, the entirety of the Foothills area is inspected and cleared each year in the Spring with a follow-up inspection conducted in the fall. Staff stated that they have not experienced any resource constraints and major tree trimming occurs every 3 to 4 years. Compliance is maintained in intervening years through the biannual inspections and subsequent tree trimming. Tree trimming activities are tracked using a software program called TreeKeeper. Staff reported they do not currently track inspections but are working on how to capture them as a work record in TreeKeeper. The table below shows how many trees were trimmed in the Foothills area from 2021 to 2024. Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 16  Packet Pg. 138 of 1138  Table 3: Number of Trees Trimmed in the Foothills Area from 2021 to 2024* *Data analysis conducted by OCA in October 2024 Urban Forestry staff provided the OCA with two guiding documents: Urban Forest Master Plan and Draft Tree and Landscape Technical Manual. While the Urban Forest Master Plan provides overall guidance and includes information on the Line Clearance Program, the Draft Tree and Landscape Technical Manual provides information on what equipment and what environmental conditions to consider for conducting tree trimming to reduce the risk of ignition due to maintenance activities. Staff said that the Manual is intended as a supporting document to the City’s tree ordinance and its Fire- Safe Landscapes section provides residents with tree and landscaping guidance in support of creating a defensible space around one’s home against wildfire risk. The OCA noted that this draft manual did not appear to be complete. For example, there were imbedded notes for staff to determine seasonal criteria for tree trimming. Overall, while these documents provide good information, they require updating, completion, and dissemination. Right Tree Right Place Program The Right Tree Right Place Program provides resources for residents with trees that conflict with power lines. The program includes removing trees at no cost, reimbursement for stump removal and reimbursement for replacing trees with appropriate tree alternatives. Property Inspections in the Wildland Urban Interface The City’s Fire Marshal oversees fire safety inspections of businesses and properties. These inspections ensure businesses and residents comply with California Fire Code and keep properties clear of fuel that could increase the risk of wildfire. When a property is found in violation of the Fire Code, they are issued a “Notice of Violation” and typically given a month to make Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 17  Packet Pg. 139 of 1138  reinspection fees incurred by the City. The City also adopts a Weed Nuisance Abatement resolution annually and works in coordination with the County of Santa Clara to address properties with weeds that are deemed a nuisance and/or fire hazard. Based on reports analyzed by the OCA, in 2023 there were 133 homes in Palo Alto’s Wildland Urban Interface (WUI). Inspections were conducted for 104 of these homes and 86 of these passed the first inspection. However, it appears that only 3 homes were reinspected and 26 homes had outstanding violations at year-end. Management stated that this report needs to be cleaned up and there may be less than 133 properties in the Palo Alto WUI. In 2024, through the third quarter of the year, the City had performed 138 inspections in the WUI. The City recently began using a new system to track fire inspections and management reported they are working with the City’s Information Technology Department to develop more robust reporting capabilities so the Fire Marshal can more easily track metrics on how many violations have been issued, how many have been corrected, how many referred to the fire prevention bureau, etc. With improved data tracking and reporting capabilities, the City will be able to better and timelier follow-up with businesses and residents who are not in compliance with the Fire Code and ensure wildfire risk is reduced. Santa Clara Fire Safe Council The City has a short-term contract with Santa Clara Fire Safe Council to help with roadside clearance work, public education, and pursuing grant opportunities. Staff stated that the City has introduced the Firewise program in the past through the Fire Safe Council, but the program has not had much traction and Palo Alto does not currently have a Firewise Community, a program that must stem from the impacted residents. The Firewise USA® program offers a structured approach for communities to enhance their wildfire resilience and promotes collaboration between residents, fire departments and other stakeholders. Establishing a Firewise program is also recommended for Palo Alto in the Santa Clara County Community Wildfire Protection Plan. A core principle in Community Wildfire Protection Plans is to include as many agency representatives and resident leaders in the planning process as possible. The first goal in FEMA’s Creating a Community Wildfire Protection Plan is to “Create fire-adapted communities” which includes pursuing Firewise site recognition, providing information to the community about fire safety, and reducing risks for home ignition. As stated in the CWPP, the City should strongly consider working with the local Foothills community to attain and maintain Firewise USA recognition. Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 18  Packet Pg. 140 of 1138  CAL FIRE has provided assistance to the City over the past couple of years in clearing out vegetation in the Foothills area and including some areas with Eucalyptus trees. The City does not currently have a formal contract with CAL FIRE for these services, however, this is something they should consider ensuring for service provision in the future. Community Education and Outreach could be improved. While the City has implemented various programs and trainings to promote the community's wildfire awareness and prevention efforts, there is room for improvement. Currently, there is no comprehensive policy or set of requirements established for the City's overall community outreach and education efforts to ensure sufficient information and education are provided to the residents for wildfire prevention and emergency preparedness. As a result, the City's overall community outreach and education efforts are not tracked to ensure goals are met. Limited efforts to measure education and outreach effectiveness According to management, community outreach and education responsibilities are shared between Fire Prevention and OES and the citywide communications team. Staff said efforts were tracked in the past, but they lost the position responsible for this activity and there are currently no P&P in place to guide the provision or tracking of education and outreach efforts. Staff indicated that recent efforts have not been well attended by residents, making it difficult to assess how engaged and prepared the community is to prevent and respond to wildfires. CPAU also performs community education and outreach activities and includes wildfire information as part of its regular communications with customers. CPAU employs several methods for communicating with customers including utility bill inserts, email newsletter, direct mail, social media, and the CPAU website. While staff provided several examples of wildfire education efforts, they indicated there is no policy or plan outlining expectations or responsibilities for outreach and education efforts, how often they should be performed and/or how to determine what information gets shared. In accordance with State law, the Utility Wildfire Management Plan is presented annually in a public meeting to the Utilities Advisory Commission. Developing a guiding document with appropriate goals and targets could help ensure the utility consistently communicates with residents and could aid in tracking the effectiveness of these efforts over time. Some residents report a lack of wildfire preparedness education and a desire for more information related to City prevention efforts The City of Palo Alto’s Community Survey results from 2023 support the observations above that the City could improve outreach efforts to community members. When asked about the quality of Palo Alto’s fire prevention and education services, 37% of respondents in 2023 answered “don’t know”, 18% answered “fair” or “poor”, and 45% answered “good” or Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 19  Packet Pg. 141 of 1138  nor is the sample size specific to the WUI region. In 2022, CPAU’s study of Key Account Customers found that 40% indicated being “very concerned” with future wildfires and a 2023 Residential Electric Customer Satisfaction Study reported that the second most desired topic of information (44%) is “what CPAU is doing to prepare for emergencies like wildfires and earthquakes.” The City’s Fire Department conducts annual property inspections in the WUI to detect dangerous conditions that could contribute to or exacerbate wildfire risk. As noted above, our analysis of the fire inspection log from 2023 shows that 26 out of an approximate 133 homes in the WUI had outstanding violations and in 2024 more than 74 homes had violations. Annually doorhangers are provided to residents in this area. Additional measures such as education, outreach, and fines may help to reduce violations by informing residents of the dangers of excess vegetation and any maintenance or prevention related resources available to them. The Fire Department does maintain an online wildfire preparedness resource for community members: https://www.cityofpaloalto.org/Departments/Fire/Prepare-For-Wildfire- READY-SET-GO. Recommendation Wildfire prevention efforts: 1. Continue efforts to underground WUI distribution infrastructure and prioritize, as appropriate, maintenance and possible replacement of the oldest poles should they remain in place. 2. Line Clearance policy documents should be established and or reviewed, updated and finalized (e.g. Draft Tree and Landscape Technical Manual) 3. Continue efforts to better track and monitor property violations in the WUI to enhance enforcement. 4. Prioritize efforts to establish a Firewise Community including stakeholder engagement throughout the process 5. Formalize the contract with CAL FIRE to ensure service provision continues into the future. 6. Ensure wildfire education and outreach plans document coordination efforts between OES, Fire and CPAU to ensure information is consistently and regularly provided to residents. Management Response Please see appendix for responses. Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 20  Packet Pg. 142 of 1138  City Wildfire Response Plans Overall, the City has a strong emergency response plan but should consider if improvements could be made to evacuation planning, after action report recommendation implementation, and communication efforts. mitigating wildfire risks by coordinating closely across its own departments— such as the OES, Fire Department, CPAU, and Public Works—and with neighboring jurisdictions. These risk areas include Planning, Training, Detection, Communication, and Resources. The City has a comprehensive set of emergency response and wildfire plans, but the City should consider if evacuation plans could be enhanced and some plans may require updating and review The City has several plans that all work in conjunction with each other to ensure the City is prepared to response to various disasters and hazardous conditions. In addition to internal plans, the City is part of Santa Clara County’s Community Wildfire Protection Plan. We discuss several of the plans guiding the City’s response approach, below. The City has 6 plans related to wildfire. • Overarching Emergency Operation Plans (EOP) which contains the annexes Emergency Operations Center Manual (EOC), • Local Hazard Mitigation Plan (LHMP), • Foothills Fire Management Plan (FFMP), • Wildland Urban Interface Fire Response (WUI), and • CPAU Wildfire Mitigation, which is a wildfire plan for the City Utilities Department. • The EOP adopted by city council on January 11, 2016, states that it follows FEMA's "whole community" approach. The EOP in general follows the format laid out by FEMA. The revision history and certification of biennial review on the EOP are blank both on the EOP provided to auditor and on the City website, indicating that the plan has not been updated or reviewed in 8 years. The distribution section of the EOP does not adhere to FEMA's recommended format, which specifies that this section should be presented as a list. Management has identified that the EOP is currently undergoing review and update in 2025. In the EOC, wildland fire response is primarily addressed through the EOC activation, the plan's emphasis extends beyond immediate response to a broader, proactive strategy. According to the EOC, the City prioritizes comprehensive hazard analysis and ongoing training aligned with state and national standards such as ICS, SEMS, and NIMS. The LHMP is part of the larger Santa Clara Operational Area Hazard Mitigation Plan and has a Palo Alto Annex. The LHMP details potential hazards for Palo Alto and provides recommended actions to prepare for these hazards. This plan was recently adopted by the City Council in Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 21  Packet Pg. 143 of 1138  The FFMP for Palo Alto focuses on mitigating wildfire risks in the Foothills area through targeted vegetation management and strategic planning. The document highlights accomplishments since the initial 2009 plan, including improved evacuation routes, prescribed burns, and reduced fire hazards near critical infrastructure. The update emphasizes ongoing efforts like annual maintenance of treated areas, collaboration with regional agencies, and leveraging funding opportunities. The plan includes post-treatment fire behavior analysis, showcasing how vegetation management efforts have improved emergency access and reduced the likelihood of wildfire spread. There is a monthly meeting with OES, CSD Open Space Division, Fire Marshal’s Office, Public Works Operations, and Utilities Engineering to address and discuss current issues within the FFMP. The City is currently in the process of updating this plan. The WUI focuses on WUI fire response and provides a concept of operations in the development of an effective and coordinated response to a significant wildland urban interface (WUI) Fire. This provides direction for city departments, community groups, and allied stakeholders ensuring interagency coordination in accordance with the City’s EOP, the California Emergency Services Act, the Standardized Emergency Management System (SEMS), and the National Incident Management System (NIMS). The CPAU Wildfire Mitigation plan focuses on minimizing the risk of wildfires caused by electric lines and infrastructure. Key strategies include undergrounding power lines in high-risk areas, such as the Foothills region, enhanced vegetation management, and the use of advanced technologies like non-expulsion fuses and remote deenergization switches. The plan emphasizes collaboration with other city departments, such as the Fire Department and Urban Forestry, to ensure comprehensive wildfire prevention efforts. Regular inspections, vegetation clearance exceeding regulatory standards, and continuous monitoring are highlighted as critical components. The plan also includes a performance metrics framework to track the effectiveness of these mitigation efforts, ensuring proactive adjustments where needed. Areas for Improvement Overall, OCA found that the City’s plans align with the majority of FEMA guidance; however, they would be strengthened by incorporating a more comprehensive revision history and an enhanced review process to ensure that plans are regularly reviewed and updated. In addition, while the FFMP addresses evacuation routes and ensuring these routes remain clear for emergency personnel as well as residents for evacuation, we recommend the City consider the following enhancements based on Homeland Security’s, Planning Considerations: Evacuation and Shelter-in-Place; Guidance for State, Local, Tribal, and Territorial Partners, July 2019. This guidance highlights the following responsibilities for local jurisdictions: • Setting clear expectations for whole community partners through education, training and information sessions, Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 22  Packet Pg. 144 of 1138  • Establishing and publishing clear evacuations routes and zones for the community, • Identify evacuation shelters within the community and in other communities working with those neighboring communities to establish notification and operational procedures, • Create pre-approved accessible messaging for rapid distribution regarding incident and shelter in place or evacuation instructions, • Have a continuity plan to help maintain response operations if interrupted, and • Provide real-time mapping and navigation routing systems through Geographic Information System (GIS). Homeland Security’s guide also highlights key lessons from past wildfire emergencies that occurred in Los Angeles County, CA and Larimer County, Colorado: • Need for increased coordination for quicker incorporation of GIS data into analysis • Identification of the safest evacuation routes combined with the use of multiple forms of communication to keep residents informed regarding timing and location of evacuated areas. • Use of a tiered evacuation approach o First, direct residents out of an immediate impact zone to an evacuation point, out of danger, where additional information is provided, o Second, if the danger is prolonged, direct residents from the evacuation point to an evacuation center where water, food and power resources are available to charge mobile devices, and o Third, if overnight or multi-day evacuation is necessary, direct residents to shelters in nearby communities. Training The City monitors training requirements and compliance and recently implemented a new sign-in process to improve tracking Fire, OES, and Police all serve critical functions in emergency response with different training requirements depending on their roles and responsibilities. In terms of wildfire response training, the Fire Department provides wildfire training through modules provided by Vector Solutions as part of an annual fire safety refresher course, RT-130 which is required per the National Wildfire Coordinating Group (NWCG) for designated positions for all personnel assigned with Fireline duties. The training is completed before the start of the Wildland season which typically runs from May to November but can vary from year to year. A new QR check-in system may have resulted in Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 23  Packet Pg. 145 of 1138  as of the writing of this report. There was a total of 77 employees signed up and as of August 29th, 2024, 71 had completed the required training. Out of the 6 who had not completed the training, five were due to workers’ comp or medical issues. Management was unable to provide an explanation of why the remaining employee’s training was not completed but noted that the individual received follow-up training to ensure understanding of training requirements and protocols. Management stated that a new check-in system is now in place and will help the City more easily track training compliance in the future. The OES training primarily covers critical incident response, with minimal emphasis on wildfires. Finally, the Police Department does not have specific wildfire training. Instead, they focus on support roles during such incidents, including using police speakers for warnings, directing traffic, and ensuring clear roads. After Action Reports (AAR) According to The National Wildfire Coordinating Group (NWCG) AARs are essential for wildland firefighters to learn from mistakes and capitalize on successes. The objective of the AAR is to immediately identify these successes and failures. Once they have been recognized, further exploration allows the team to perfect its skills and be better prepared for future endeavors. NWCG is a partnership of federal, state, tribal, and local wildfire management agencies that work together to establish standardized practices for wildland fire operations in the United States, its primary goal is to enhance efficiency, safety, and effectiveness in wildland fire management and response. The NWCG develops training programs, operational guides, and policy frameworks to ensure consistent and coordinated wildfire management across jurisdictions. It also serves as a central resource for promoting best practices, improving interagency collaboration, and supporting the professional development of fire personnel. While the City conducts training and AARs after critical incidents, efforts to track and implement resulting recommendations could be improved All the departments come together to engage in tabletop exercises for training purposes. Departments also work together after critical emergency incidents to conduct AARs to report their successes and improvement opportunities. While some AAR recommendations have been implemented others have not and staff said they do not formally track and monitor the implementation of recommendations. Areas of improvement noted in training exercises and in AARs cover various areas such as communication, recovery and proper use of PPE. Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 24  Packet Pg. 146 of 1138  Training Exercises 2024 XSC Readiness Drill A drill hosted by the County of Santa Clara to provide pre-incident training on bulldozer, hand crew, and helicopter operations during a wildfire. This event was attended by county-wide OES departments. Areas of improvement included: • Creating clarity around the communications center and coordinating the process and flow of mutual aid initial attack orders. Vulcan Forge Tabletop Exercise The City of Palo Alto Vulcan Forge Tabletop Exercise was intended to discuss and validate existing procedures. The drill provided an opportunity for City staff to exercise their role and gain a greater understanding of the processes and procedures that will occur during wildfire response. Areas of improvement included: • The WUI ConOps is lacking specific procedures to reach those with limited English proficiency or for people with disabilities, and others with access and functional needs (DAFN) • Participants didn’t appear to know how best to alert residents who were experiencing power outages • The WUI ConOps does not have a procedure for approving PIO to disseminate to the public • Define terms such as “mass care” vs. “sheltering” to create clear understanding of evaluation points, centers, shelters, and the like • Establish evacuation center and sheltering operation criteria, P&P and train appropriate staff • Current plans lack sufficient detail on recovery and relief efforts • OES needs to create P&P for re-entry and re-population After Action Reports PAFD AAR Dish Fire A fire of unknown origin started near the Stanford Hiking Dish Trail and the PAFD responded to put out the fire. The fire was in an area of the dish hiking trail that’s nearest the intersection of lower Reservoir Road and the Stanford Hiking Dish Trail with the closest gate access being the Gerona Gate. Areas of improvement included: • There was a delay in dispatching mutual aid and additional hands-on training was requested • Proper PPE must always be worn when responding OCA’s analysis of training exercise notes and AARs found areas of improvement are often identified with suggestions for process Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 25  Packet Pg. 147 of 1138  5 https://www.cityofpaloalto.org/Departments/Emergency-Services/Emergency-Preparedness 6 https://www.cityofpaloalto.org/Departments/Fire/Prepare-For-Wildfire-READY-SET-GO monitor these findings and recommendations to better determine if they should be implemented, what resources may be needed, and to establish an appropriate timeline for implementation. The City is enhancing its wildfire detection capabilities through the use of gas monitoring sensors deployed in the Foothills area Detection is crucial in wildfire emergencies because it enables early response, reducing the spread and potential damage of fires by allowing for quicker containment efforts. Early detection systems, such as remote sensors and aerial surveillance, are vital for protecting communities and natural resources, as they help agencies mitigate risks before fires escalate to dangerous levels. The City recently set up N5 Sensors which are an advanced gas monitoring system designed to provide early alerts in the event of a wildfire. In a collaborative program, the City is partnering with Stanford and Woodside, with Stanford purchasing 25 N5 sensors and receiving an additional 25 at no cost. Of these, Palo Alto will receive 12 sensors, while Woodside will receive 13. Each city will cover its own data expenses, estimated at $22,000 per city for the first two years. Palo Alto received a grant from the Department of Homeland Security to assist with the expenses. The Fire Safe Council will handle the sensor installation and program management. Although N5 Sensors will not provide complete coverage across all areas, they are strategically positioned to enhance early warning capabilities in high-risk zones. Additionally, the City has explored the use of drones for monitoring, but concerns over privacy, public perception, and restrictive municipal codes have made their approval challenging. Communication The City employs several methods for communicating critical information to its residents during an emergency and should continue to explore methods to increase participation in the County’s emergency alerting system The City has established multiple communication channels such as the City’s website, news releases, social media, and radio announcements to remind residents of wildfire season and keep them informed of the City’s events and emergency notifications. City web pages dedicated to general emergency preparedness 5 and wildfire prevention include CAL FIRE’s Ready-Set-Go 6 video, Palo Alto Wildfire Planning Map, evacuation information, a link to sign up for Santa Clara County’s alerting system, and other resources. Palo Alto utilizes Everbridge, the mass notification system used throughout Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 26  Packet Pg. 148 of 1138  Under California’s emergency management structure, each county operates as an "Operational Area," giving it independent authority and responsibility for issuing alerts and warnings within its jurisdiction. Santa Clara County has been using Everbridge for several years, with trained personnel across jurisdictions, including staff from Palo Alto’s OES and Police dispatch. Everbridge is Palo Alto’s primary tool for sending mass alerts in wildfire situations. There are two main response scenarios: First, if a fire breaks out within Palo Alto’s jurisdiction, OES will issue an immediate alert after assessing the fire's location and direction. Second, if a fire starts outside the area but moves toward Palo Alto, they monitor and notify residents as needed. Residents can "opt in" to receive these alerts by registering at alertscc.org. Additionally, Everbridge includes an "all records" list, which contains duplicates, and includes data from their reverse 911, purchased cell phone records, white and yellow pages, and data from the prior system, Blackboard. However, this “all records” list contains duplicates making it difficult to determine the total number of residents signed up for the service. For example, an individual might have their information listed in all records noted above and each record lists them as a separate contact. Based on the alert system sign-up data provided by Santa Clara County, the percentage of Palo Alto residents signed up for alerts increased from 15% in 2023 and 2024 to 17% in 2025. Participation among other Santa Clara County cities in 2025 ranges from 7% to 29%. Some cities may have more or less of their population occupying WUI areas which may account for some of the differences in emergency alert adoption. The OCA recommends the City continue to explore ways to increase resident participation in this program since it is the City’s primary communication tool for reaching residents in an emergency. Resources The City has seven fire stations. Six fire stations are staffed full-time and the seventh station provides seasonal coverage in the foothills region during high-fire danger months. This seventh station is staffed through an interlocal agreement with Losa Altos Hills and Santa Clara County which specifies a rotational schedule to ensure coverage. Mutual aid agreements are essential in wildfire management, enabling communities to combine resources, expertise, and personnel across jurisdictions for a more effective and rapid response to large-scale fires. Wildfires spread quickly and can overwhelm local resources, making support from neighboring cities, counties, and state agencies critical for containment and suppression. These agreements establish protocols for communication, resource sharing, and logistical coordination, which helps reduce response times and enhances overall operational efficiency. FEMA and CAL FIRE emphasize that such partnerships strengthen resilience by ensuring that participating agencies are prepared to respond cohesively to the complex challenges of wildfire emergencies. Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 27  Packet Pg. 149 of 1138  Recommendation partners, the City does not maintain these agreements in a central repository for easy tracking and monitoring Palo Alto has 5 mutual aid agreements for wildfire response, though some require updates for ongoing effectiveness. The Station 8 agreement remains active, providing 24/7 monitoring during wildfire season, while the Mutual Threat Zone operating plan with CAL FIRE establishes guidelines for resource usage and remains in force until a 30-day termination notice is issued. Additionally, the agreement among Palo Alto, Santa Clara County, and Los Altos Hills ensures the availability of nearby resources for emergencies, continuing unless ended by a 30-day notice. The agreement with Woodside, which expired sometime in 2019 had no specified end date, according to the Deputy Fire Chief negotiations for a new contract are currently underway. The mutual aid agreement with Mountain View is also expired, though still honored by both cities. The OCA noted that these agreements are not kept in a central repository which may make it difficult to track and monitor the status of the agreements. We recommend the City consider the following improvements to enhance its Wildfire response efforts: 1. The City’s emergency plans align with the majority of FEMA guidance; however, they would be strengthened by incorporating a more comprehensive revision history and an enhanced review process. The City should also review its evacuation plans and consider if plans could be enhanced by reviewing best practices in other cities such as establishing evacuation locations and sheltering agreements with neighboring communities. 2. City management should more formally track and monitor findings and recommendations identified during training exercises and in AARs of emergency incidents to ensure needed improvements are made and issues are timely resolved. 3. Continue to explore ways to increase resident registration in the County’s emergency alerting system. Opportunities may include partnering with schools, homeowner associations, and local businesses to disseminate wildfire education materials and encourage participation in City programs and the County’s emergency alert system. 4. Determine an appropriate solution for staff to more easily access, track and monitor the status of all mutual aid agreements, including active dates, renewal deadlines, and responsible contacts for updates. For example, a centralized tracking system for mutual aid agreements would provide clarity on the status of each agreement, preventing lapses in mutual aid coverage and ensuring that expired agreements are addressed promptly. Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 28  Packet Pg. 150 of 1138  7 CPAU contracts with a third-party vendor to conduct compliance inspections to ensure utility poles and equipment are well maintained. Visual inspections are conducted annually and a detailed inspection every five years. Every ten years, the vendor performs an “intrusive inspection” which can include drilling into the poles to determine their condition. Lines and poles are rated using a 3-point scale from P1 (most serious and needing immediate attention) to P3 (less urgent). Staff stated that poles rated with a P1 are remediated immediately, however, the OCA could not assess the timeliness of response based on the reports provided. Management Response Additional Observation electric Grid Modernization Project, it does not have a formal maintenance schedule that proactively anticipates and schedules maintenance as the infrastructure ages. Instead, maintenance issues are addressed on an as needed basis. Management stated that the Utility is currently behind schedule in addressing line and pole maintenance due to resource constraints but is on schedule to complete all Overhead and Underground facility inspections for 2024. The OCA has performed a general assessment of CPAU’s line and pole maintenance program noting some areas for the City to consider. The OCA analyzed pole data from the Utility’s pole inspection report 7 and noted that approximately half of the City’s poles are over 40 years old, with some poles dating back to the 1940’s. 545 of CPAU’s poles are 60 years old or older and may present age-related maintenance issues. It should be noted that many of these poles may be scheduled for replacement as part of the Grid Modernization project. In addition to the Utility’s pole inspection report, the OCA asked for example inspection reports for individual pieces of equipment and poles. These reports are entered into the CPAU Electric Equipment & Maintenance Database. The audit team noted that for the example reports received, the previous inspection dates on the forms appeared to be more than 10 years ago. The OCA recommends the City consider implementing a formal infrastructure maintenance program as part of its Grid Modernization efforts to ensure ongoing timely inspection and maintenance in the future. Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 29  Packet Pg. 151 of 1138  Appendix A: Management Response Matrix 1. Continue efforts to underground WUI distribution infrastructure and prioritize as appropriate maintenance and possible replacement of the oldest poles should they remain in place. efforts should continue to underground and harden distribution infrastructure within the high fire danger area. The City’s Utilities Wildfire Mitigation Plan, updated and approved annually, prioritizes the undergrounding of the City’s overhead infrastructure in the high fire danger area on Arastradero Road. The first phase of the Foothill Fire Mitigation Project will move powerlines underground and remove approximately 182 of the total of 203 power poles and overhead powerlines in the high-risk area. The estimated 21 remaining poles and associated equipment require additional engineering and coordination prior to additional fire hardening measures. The Foothill Fire Mitigation Project includes substructure construction, including the installation of boxes and pad-mounted equipment; Cable pulling and line energization; Decommissioning of overhead poles and equipment. documents should be established and or reviewed, updated, and finalized (e.g. Draft Tree and Landscape Technical Manual) Manual (TLTM), and the recent the public comment period on the proposed revisions closed March 2025. Comments are under review and a draft of the TLTM is scheduled for review with the Parks and Recreation Commission, with a final version expected this year. Staff agree and plan to establish a line clearing policy for trees and landscape track and monitor property violations in the WUI to enhance enforcement and at the time of this report has now fully implemented this tool. This software, specifically designed for fire inspections, will improve inspection management, including tracking and monitoring of properties a Firewise Community including stakeholder engagement throughout the process contract with the Fire Safe Council including cost estimates for roadside clearance and public education resources, i.e. Firewise Community. PAFD is seeking partnership with Woodside Fire Protection District and Los Altos Hills Fire District to enhance our presence and efforts towards public education and will support residents in the pursuit of participation Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 30  Packet Pg. 152 of 1138  Finding 1: While the City has made significant investments in and has strong programs aimed to prevent and mitigate wildfire risks; we noted some areas for improvement including enhancing community outreach and engagement. Key Recommendation Concurrence Responsible Department(s) Action Plan Target Date (calendar year) will work with local Foothills community to attain and maintain Firewise CAL FIRE to ensure service provision continues into the future. Agree understand that operationally this may not be feasible since it would add administration obligations for an outside agency. The summer of 2025 will be the third year that CAL FIRE assists the City of Palo Alto with hazardous fuel removal. CAL FIRE provides similar services for multiple agencies in the county (San Jose, Morgan Hill) without a contract. Staff will seek this formalization to ensure stability and continuity, though it may be infeasible if CAL FIRE does not agree to a formal contract. CAL and outreach plans document coordination efforts between Office of Emergency Services (OES), Fire and CPAU to ensure information is consistently and regularly provided to residents. Agree Utilities, CMO departments. Staff will look to update the City’s existing plans and hazard-specific annex documents ensuring communication of information is consistent and timely, reflecting the practices in place. The existing EOP identifies communication protocols and responsibilities in the event of a disaster but could add details to formalize wildfire preparedness and outreach. The leadership team reviews all scheduled community events and engagement points on a monthly basis, including educational events for seasonal events such as floods and wildfires. A unified wildfire preparedness effort among departments to build community awareness, offering tools and tips, and sharing online resources already includes the following: annual door hangers, utility bill inserts, general emergency services communications such as continued promotion of AlertSCC, the City’s emergency alert system, annual test of Alert SCC, and annual community presentations on wildfire preparedness all available on the ‘Ready, Set, Go!” web resource referenced in the report. Annually, OES and PAFD host public education Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 31  Packet Pg. 153 of 1138  Finding 2: Overall, the City has a strong emergency response plan but should consider if improvements could be made to evacuation planning, training, after action report recommendation implementation, and communication efforts. Key Recommendation Concurrence Responsible Department(s) Action Plan Target Date (calendar year) with the majority of FEMA guidance; however, they would be strengthened by incorporating a more comprehensive revision history and an enhanced review process. The City should also review its evacuation plans and consider if plans could be enhanced by reviewing best practices in other cities such as establishing evacuation locations and sheltering agreements with neighboring the City’s published emergency plans are timely completed with revision histories clearly documented, beginning with the current update of the EOP underway. The City has evacuation maps available on the OES website and all public education materials and sessions advise residents of the location and content of the resources. PAFD and OES continue to utilize Genasys (formally Zonehaven) software that notifies residents in a particular zone of evacuation warnings and orders related to natural and human caused disasters: what is happening, where to evacuate, etc. which also includes pre-approved messaging in the platform. more formally track and monitor findings and recommendations identified during training exercises and in emergency incident AAR recommendations to ensure needed improvements are made and issues are timely resolved incidents, though the outcomes of these are tracked differently depending on the nature of the incident or training. For tabletop exercises, OES regularly conducts citywide AARs for training exercises and incidents. OES reviews and follows-up on necessary improvements identified in the AARs, however, to instill further rigor, OES will implement a post-AAR process review every six months until resolution of identified action items for final closure. PAFD routinely conducts AARs following major incidents, which are then reviewed by executive command staff. Depending on any identified areas for improvement, such as further training or policy updates, the Deputy Chief over operations is responsible for ensuring completion of applicable follow-up steps including additional feedback to departments increase resident registration in the County’s emergency alerting system (AlertSCC). OES, Fire engagement, notification, and education activities and to increase AlertSCC sign ups. This is prominent on many pages of the City’s website, a recurring item in digital newsletters and printed outreach and Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 32  Packet Pg. 154 of 1138  Finding 2: Overall, the City has a strong emergency response plan but should consider if improvements could be made to evacuation planning, training, after action report recommendation implementation, and communication efforts. Key Recommendation Concurrence Responsible Department(s) Action Plan Target Date (calendar year) homeowner associations, and local businesses to disseminate wildfire education materials and encourage participation in City programs and the County’s emergency alert system. message provided at community events through tabling. An annual AlertSCC test is scheduled citywide to encourage more registrations. Staff agree that continuing to support participation in this program is important, and will continue to promote AlertSCC registrations in various City engagement efforts. Note that the City continues to be ahead when compared to the Countywide 10% opt-in level. Last year, as a result of communications efforts, over 7,000 City contacts opted into receive emergency alerts. Furthermore, staff agree and will continue to partner with schools, Palo Alto Neighborhoods, and local businesses to share solution for staff to more easily access, track and monitor the status of all mutual aid agreements, including active dates, renewal deadlines, and responsible contacts for updates. For example, a centralized tracking system for mutual aid agreements would provide clarity on the status of each agreement, preventing lapses in mutual aid coverage and ensuring that expired agreements are addressed promptly. Agree the CA Master Mutual Aid Agreement. This includes a list of mutual aid response disciplines, coordinating agencies, and specific elements included, e.g. fire & rescue, search and rescue, emergency management, etc. Although current mutual aid agreements for fire services are retained by the Fire Department in current operations, staff agree that a central repository of auto-aid agreements will be kept with emergency protocol documentation as an appendix/reference document, for broader and more ready accessibility in an emergency. A tracking system is not needed as all auto aid agreements within Santa Clara County agencies are current and have no expiration dates. Locally, the Santa Clara County XSC Mutual Aid Plan is reviewed and updated annually. San Mateo County fire chiefs are looking at the details of the mutual aid agreements in the County to review operational impacts countywide. The auto aid agreements with Woodside Fire Protection District and Menlo Park Fire, both of which are in San Mateo County, do have end dates Item 3 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 3: Staff Report Pg. 33  Packet Pg. 155 of 1138  5 7 5 6 Policy & Services Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Auditor Meeting Date: April 8, 2025 Report #:2410-3635 TITLE Receive Update on City of Palo Alto Emergency Preparedness for Wildfires and Recommend City Council Approval of the Emergency Preparedness: Wildfire Audit Report by the City Auditor – Late Packet Report RECOMMENDATION Staff recommend that the Policy & Services Committee: Receive an update regarding wildfire preparedness for City operations and receive and recommend City Council approve the BakerTilly Emergency Preparedness: Wildfire Audit Report. EXECUTIVE SUMMARY Palo Alto, like many communities in California, faces increasing wildfire risks due to climate change, prolonged drought, and human activity in the wildland-urban interface (WUI), and this report is one item in a series of a series of public engagement and public meetings to raise awareness of local wildfire risks and the importance of wildfire preparedness. This report provides a summary of recent wildfire preparedness activities underway and new items such as the newly released wildfire maps released by the California Fire Marshal and transmits an audit on wildfire preparedness completed by BakerTilly, the City’s Auditor. The findings of an independent audit conducted by BakerTilly reviewed the current wildfire protection plans implemented by the City and evaluated their effectiveness in mitigating wildfire risks and ensuring adequate emergency response. The audit identified areas for improvement in evacuation planning and enhancing community engagement. This report recommends that the Committee recommend the City Council approve the audit and recommendations within. BACKGROUND In response to increasing wildfire risks, the City has developed various wildfire protection plans and strategies and takes a regional approach to planning efforts. Coordination and alignment with County and State agencies is key to ensuring responsible agencies can work together in an emergency. Mutual aid agreements with neighboring jurisdictions to enhance firefighting Item 3 Attachment B - Policy and Services April 8, 2025 Staff Report        Item 3: Staff Report Pg. 34  Packet Pg. 156 of 1138  5 7 5 6 capabilities during large-scale incidents are critical to incident response as no single agency has the resources to respond to a wildfire incident independently. •Emergency Operations Plan Basic Plan (EOP) o Emergency Operations Center Manual (EOC) •Wildland Urban Interface (WUI) Fire Response •Local Hazard Mitigation Plan (LHMP) •Foothills Fire Management Plan (FFMP) •CPAU Wildfire Mitigation Plan •Santa Clara County Community Wildfire Protection Plan (CWPP) ANALYSIS Wildfire Preparedness Activities Item 3 Attachment B - Policy and Services April 8, 2025 Staff Report        Item 3: Staff Report Pg. 35  Packet Pg. 157 of 1138  5 7 5 6 Foothills Fire Management Plan & Community Wildfire Protection Plan, respectively. Below outlines recent wildfire preparedness activities recently completed or under way organized by •preparation and planning, •multijurisdictional initiatives, and •mitigation and prevention efforts. Local Hazard Mitigation Plan (LHMP) & Santa Clara County Multi-Jurisdictional Hazard Mitigation Plan (MJHMP): Office of Emergency Services (OES) with the County updated emergency plans, including the Palo Alto LHMP. The Santa Clara County MJHMP, Volume I and the associated Jurisdictional Annexes, Volume II, was approved by the State and by FEMA and City Council adopted Volume I and The Palo Alto Annex to Volume II on October 7, 2024 in alignment with the Council 2024 priority objective. Emergency Operations Plan (EOP): The City’s Emergency Operations Plan (EOP) is currently undergoing a review and update process including community engagement and feedback. This process ensures the City has the planning, policies, and concept of operations to guide responsibilities for emergency preparedness, prevention, response, recovery, and mitigation for the City of Palo Alto. Local Responsibility Area Hazard Severity Zone Maps: To better prepare for wildfires, the California Department of Forestry and Fire Protection (CAL FIRE) is required to classify the severity of fire hazard in areas throughout California. In response, the State is releasing Fire Hazard Severity Zone (FHSZ) maps in phases and released Palo Alto’s maps at the end of February. Portions of Palo Alto, generally west of Junipero Serra Blvd/Foothill Expressway have been identified as moderate, and areas in the Palo Alto Hills as high or very high Fire Hazard Severity Zones. The maps are like flood zone maps, noting factors such as fire history, existing and potential fuel (natural vegetation), terrain and weather patterns. 1, and the maps will tentatively be brought forward to the City Council for approval on June 2, 2025. 1 State Fire Hazard Maps Released for Public Comment: https://www.cityofpaloalto.org/News-Articles/City- Manager/Palo-Alto-Begins-Wildfire-Preparedness-Public-Discussions Item 3 Attachment B - Policy and Services April 8, 2025 Staff Report        Item 3: Staff Report Pg. 36  Packet Pg. 158 of 1138  5 7 5 6 Management Plan efforts, Local Hazard Mitigation planning, Comprehensive Plan programs and policies, and community education to reduce personal exposure and risk. The Electric Utility Engineering will be evaluating grid hardening measures in the expanded zones including the alternative to move the overhead electric lines undergrounding to mitigate wildfire risk. Utilities Wildfire Mitigation Plan 2025 Update: Annually, staff work to review and update the Palo Alto Utilities Wildfire Mitigation Plan and present it to the Utilities Advisory Commission for approval, currently expected by the end of FY 2025. This plan, in compliance with Public Utilities Code section 8387, describes how the utility is to maintain and operate electrical lines and equipment to mitigate wildfire risk posed by electric lines and equipment. The City strives to ensure that its infrastructure is safe and resilient by taking proactive actions to maintain its equipment, refine the existing Public Safety Power Shutoff (PSPS) protocols as needed, and underground the electric lines in the only high fire threat area. As part of the Wildfire Mitigation Plan 2025 Update, Palo Alto Utilities will be expanding the Public Safety Power Shutoff Communications to customers that fall within the expanded State Fire Marshall’s Fire Hazard Severity Zones. Regional Training: In June 2024, the Palo Alto Fire Department teamed up with Mountain View Fire, San Jose Fire, Santa Clara County Fire, and Alameda Fire agencies for an annual Wildland Safety Drill at Foothills Nature Preserve. This drill was all about sharpening skills in operational efficiency, communication, safety procedures, and resource familiarization, especially in the event where mutual aid is needed. This type of practice is vital to ensure that our teams are ready to seamlessly support each other. Efforts are already underway for a Santa Clara county- wide wildland training in May 2025. Santa Clara County FireSafe Council: Staff is pursuing a service agreement to perform the schedule of required treatments each year in conjunction with some educational support. The Fire Department and OES are in the process of evaluating certain remote fire detection equipment in cooperation with the FireSafe Council and local partner agencies as well. Tabletop Exercise: Staff are working to support efforts by the Santa Clara District - Division of Drinking Water of the State Water Resources Control Board (SWRCB) to perform a tabletop exercise of the water utility prior to the 2025 wildfire season. Item 3 Attachment B - Policy and Services April 8, 2025 Staff Report        Item 3: Staff Report Pg. 37  Packet Pg. 159 of 1138  5 7 5 6 Prevention Efforts: Fuel Reduction Activities: The City is contracting with the Santa Clara County FireSafe Council to perform fuel reduction along Page Mill Road and Arastradero Road in 2024 and pursuing a multi-year contract for broader fuel reduction work over a 3-5 year time horizon. Additionally, the Public Works department completed fuel reduction work prescribed in the FFMP for Los Trancos Road in May 2024 and the Community Services Department is performing the annual treatments2 in Arastradero and Foothills Nature Preserves. Staff expects to request additional capital funding in FY 2026 to continue to address eucalyptus tree fuel reduction. Installed Sensor Technology: Twelve N5 Sensors3 were installed in the Foothills to detect the earliest stages of wildland fire, as well as track fire movement, smoke and monitor hazardous air quality. PAFD and OES are collaborating with the Santa Clara County FireSafe Council, Woodside Fire Protection District, Stanford University and the Department of Homeland Security to install a total of 50 sensors in the wildland urban interface areas in Palo Alto, Stanford and Woodside Fire District. Utility Systems (electricity & water) Hardening & Backup: Hardening of the electric system in the WUI may include but is not limited to replacing overhead lines with underground cables and upgrading equipment to improve reliability. Both the significant investment in modernizing the electricity grid and undergrounding the electricity transmission line in the foothills are significant infrastructure adaptations to harden the system to wildfire risks. An easement for continuing to underground the transmission line in the foothills is expected to return to Council in June 2025 after approval by Mid-Peninsula Open Space Agency. Two new portable diesel backup generators were purchased in January 2025 for the Park and Dahl Foothill Booster Water Pump Stations ensuring there are now portable generators at all five Foothill Booster Water Pump Stations. Summary and Response to the Emergency Preparedness – Wildfire Audit 2 Treatments refers to reduction in fuel, or vegetation and other combustible materials, and the management of the fuel through strategies such as mowing, clearing, or even animal grazing to reduce the fuel available. 3 Wildfire Sensors: https://www.cityofpaloalto.org/Departments/Fire/Prepare-For-Wildfire-READY-SET- GO/Wildfire-Sensors Item 3 Attachment B - Policy and Services April 8, 2025 Staff Report        Item 3: Staff Report Pg. 38  Packet Pg. 160 of 1138  5 7 5 6 independent assessment of the City's wildfire preparedness, BakerTilly conducted an audit in alignment with its 2024 Risk Assessment and subsequent Council approved workplan. NEXT STEPS Month Activity March •California Fire Marshal updated wildfire risk maps for public comment (released on City webpage 3/26) April •Finance Committee review Fire Department Staffing Options on April 14, continuing discussion from November 2024 exploring changes to enhance fire and ambulance service delivery. •Policy & Services review of Emergency Preparedness - Wildfire Audit on April 8. •State Fire Hazard Map public comment period is now open through April 26. Council will consider adoption of an ordinance incorporating map designations tentatively on June 2. May •Utilities Advisory Commission will review the 2025 Utilities Wildfire Mitigation Plan at their meeting in May or June. 4 Finance Committee, April 1, 2025, Agenda Item #3, https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=7399&meetingTemplateType=2&comp iledMeetingDocumentId=13598 Item 3 Attachment B - Policy and Services April 8, 2025 Staff Report        Item 3: Staff Report Pg. 39  Packet Pg. 161 of 1138  5 7 5 6 •Finance Committee will review the preliminary Fiscal Year 2026 operating and capital budget recommendations on May 6 and 7, including fire staffing budget proposals, and capital funding to advance additional wildfire fuel reduction in the City’s Open Space Preserves. June / summer •City Council will consider approval of an easement in the Palo Alto foothills to support continued undergrounding of the electric transmission line (upon approval by Mid- Peninsula Open Space District). •The City’s Foothills Fire Management Plan updates and the Santa Clara County Community Wildfire Protection Plan, a combined effort, will be finalized. •City Council will hold annual hearing on properties assessed for Weed Abatement work. Beyond •City Council adoption of the updated Emergency Operations Plan FISCAL/RESOURCE IMPACT Implementing activities such as hardening systems and undergrounding the electricity transmission line in the foothills are within existing capital improvement plans and funding. Acquisition of new equipment and technology is reviewed and evaluated as it arises in the context of the various plans, most currently as part of the Foothills Fire Management Plan/Community Wildfire Protection Plan (FFMP/CWPP) a multi-year plan. The City will also explore potential funding sources, such as grants from federal and state agencies, to offset the costs of implementing wildfire preparedness plans. The timeline and resource needs for implementation of management’s corrective action plans are identified by management within the attached responses. STAKEHOLDER ENGAGEMENT The Office of the City Auditor worked with and would like to thank several departments for their assistance in conducting this audit including: City Manager’s Office, Public Works, Fire Department, Office of Emergency Services, and Palo Alto Utilities. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because reviewing and approving audit findings is an organizational or administrative activity of government that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5). ATTACHMENTS Attachment A: Emergency Preparedness - Wildfire Audit Report APPROVED BY: Kate Murdock, City Auditor & Kiely Nose, Assistant City Manager Item 3 Attachment B - Policy and Services April 8, 2025 Staff Report        Item 3: Staff Report Pg. 40  Packet Pg. 162 of 1138  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: June 16, 2025 Report #:2505-4751 TITLE Recommendation that the City Council to Refer to the Policy and Services Committee an Update to the City of Palo Alto Advocacy Process Manual to Address Sponsorship of Legislation; CEQA – Not a Project RECOMMENDATION The Policy and Services Committee recommends that the City Council refer to the Policy and Services Committee an update to the City of Palo Alto Advocacy Process Manual to address sponsorship of legislation and any other recommended changes to the Advocacy Manual, and return to City Council for adoption. BACKGROUND AND ANALYSIS At the April 8, 2025 Policy and Services1 meeting, the Committee discussed legislation and also expressed an interest in reviewing the City’s advocacy process manual for edits, specifically as it relates to the process for legislation sponsorship. The Policy and Services Committee would review this topic with the following resources as a starting place: Existing Legislative Guidelines: https://www.cityofpaloalto.org/files/assets/public/v/1/city- manager/legislation/2025-legislative-guidelines.pdf Existing City Advocacy Manual: https://www.paloalto.gov/files/assets/public/v/1/intergovernmental-affairs/advocacy-manual- updated-jan-2020.pdf Most Recent Council Direction Regarding Strategic Weighing in on Legislation: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2021/id-12344.pdf 1 April 8, 2025 Policy and Services Committee Meeting, Item 3; Link: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16030 Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 1  Packet Pg. 163 of 1138  The Committee is interested in updating the Advocacy Manual to be most reflective of current practices on advocacy and to also clarify the City’s process and timelines when deciding to pursue bill sponsorship. This discussion item can be taken concurrent with the update to the Legislative Guidelines or it can come before that, at the discretion of the Committee Chair. The Committee will bring the updated advocacy manual to the City Council for review and adoption. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW APPROVED BY: Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 2  Packet Pg. 164 of 1138  7 4 6 1 City Council Staff Report From: City Auditor Report Type: CONSENT CALENDAR Lead Department: City Auditor Meeting Date: June 16, 2025 Report #:2505-4756 TITLE Policy & Services Committee Recommends Approval to Amend the City Auditor Bakertilly FY2024 and FY2025 Budgets for Task Orders to Realign the Authorized Budgets with a Net Zero Impact; CEQA - Not a Project RECOMMENDATION The City Auditor and the Policy & Services Committee recommend City Council approve the amendment of the FY 2024 and FY2025 Task Orders to realign the authorized budgets with a net zero impact overall: •FY 2025 Task 4.32: CSD Equipment and Materials Inventory Management reduced by $20,000 •FY 2024 Task 4.25: Emergency Preparedness – Wildfire increased by $5,000 •FY 2024 Task 4.28: Dispatch Center Assessment increased by $15,000 BACKGROUND In accordance with our agreement with the City, Baker Tiily is required to conduct recurring activities each year. Task 4: Execute the Annual Audit Plan comprises the majority of our budget and time. Specific audit task orders are approved annually by the Council and executed by the Policy & Services Committee (P&S) Chair as the Project Manager for the Baker Tilly contract as stipulated in the contract terms. ANALYSIS The Office of the City Auditor (OCA) presented the recommended task order changes to the Policy & Services Committee on May 13, 2025. The Committee unanimously recommended that the City Council approve the amendments to the FY 2024 and FY 2025 Task Orders. For FY 2024, two audit activities, Task Order 4.25: Emergency Preparedness (Wildfire) Audit and Task Order 4.28: Dispatch Center Assessment were included as part of the Annual Audit Plan. Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 1  Packet Pg. 165 of 1138  7 4 6 1 Both of these audits required a high degree of complexity in terms of research and analysis. The approved budgets for executing these task orders was not sufficient. The Office of the City Auditor wrote off some expenses for both of these projects. However, as these projects had extended reporting periods necessitating multiple management reviews and extending project work into 2025, the Office of the City Auditor is seeking to transfer unused funds from an FY 2025 Task Order, Task Order: 4.32 CSD Equipment & Materials Inventory Management Audit, to defray these additional costs. No change to the overall FY2025 budget is requested. •Task 4.25: Emergency Preparedness (Wildfire) – increase budget by $5,000 •Task 4.28: Dispatcher Center Assessment – increase budget by $15,000 •Task 4.32: CSD Equipment & Materials Inventory Management – reduce budget by $20,000 FISCAL/RESOURCE IMPACT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 2  Packet Pg. 166 of 1138  PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY24-4.25 Emergency Preparedness 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 referencedFY24 in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340A OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. 1B. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340A TASK O RDER NO.: FY23-4.25 2.CONSULTANT NAME: Baker Tilly Advisory Group, LP 3.PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024 4 TOTAL TASK ORDER PRICE: $73,110 $75,110.00 Increased by $2,000.00 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Lydia Kou, Chair of the City Council’s Policy and Services Committee 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): N/A 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 ___________________________________ Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Baker Tilly Advisory Group, LP 12/23/2024Manager/ City Auditor Kate Murdock 12/25/2024 Council Member Council Member Lydia Kou Item 5 Attachment A - Task Orders 4.25, 4.28, and 4.32        Item 5: Staff Report Pg. 3  Packet Pg. 167 of 1138  Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: 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) Services & Deliverables Baker Tilly’s approach to conducting an internal audit of Emergency Preparedness involves three (3) primary steps: Step 1: Audit Planning Step 2: Control Review and Testing Step 3: Reporting Step 1 – Audit Planning This step consists of the tasks performed to adequately plan the work necessary to address the overall audit objective and to solidify mutual understanding of the audit scope, objectives, audit process, and timing between stakeholders and auditors. Tasks include: Gather information to understand the environment under review o Understand the organizational structure and objectives o Review the City code, regulations, and other standards and expectations o Review prior audit results, as applicable o Review additional documentation and conduct interviews as necessary Assess the audit risk Write an audit planning memo and audit program o Refine audit objectives and scope o Identify the audit procedures to be performed and the evidence to be obtained and examined Announce the initiation of the audit and conduct kick-off meeting with key stakeholders o Discuss audit objectives, scope, audit process, timing, resources, and expectations o Discuss documentation and interview requests for the audit Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 5 Attachment A - Task Orders 4.25, 4.28, and 4.32        Item 5: Staff Report Pg. 4  Packet Pg. 168 of 1138  Step 2 – Control Review and Testing This step involves executing the procedures in the audit program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary audit objective is to determine whether the City is working to prevent wildfire and adequately prepared to respond to wildfire as part of the City’s emergency management plan. Procedures include, but not limited to: Interview the appropriate individuals in all relevant departments to gain an understanding of the organizational structure, processes, and controls related to wildfire prevention and response as well as the City’s overall emergency preparedness. Review policies and procedures as well as the legislative and regulatory requirements to identify the criteria to be used for evaluation of control design and effectiveness. Review the existing emergency management plan and other related documents such as prevention activities, training and exercises, equipment, and service contracts. Compare the process and controls against the best practices. Step 3 – Reporting In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks include: Develop findings, conclusions, and recommendations based on the supporting evidence gathered Validate findings with the appropriate individuals and discuss the root cause of the identified findings Complete supervisory review of working papers and a draft audit report Distribute a draft audit report and conduct a closing meeting with key stakeholders o Discuss the audit results, finings, conclusions, and recommendations o Discuss management responses Obtain written management responses and finalize a report Review report with members of City Council and/or the appropriate Council Committee Deliverables: The following deliverable will be prepared as part of this engagement: Audit Report Schedule of Performance Anticipated Start Date: March 1, 2024 Anticipated End Date: December 31, 2024 Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 5 Attachment A - Task Orders 4.25, 4.28, and 4.32        Item 5: Staff Report Pg. 5  Packet Pg. 169 of 1138  Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $73,110. The not-to-exceed budget is based on an estimate of 385 total project hours, of which 25 are estimated to be completed by the City Auditor. Reimbursable Expenses We plan to complete all work remote including all interviews and documentation review. However, during the planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to perform a portion of the work on-site. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $6,500. The following summarizes anticipated reimbursable expenses: Round-trip Airfare – $2,000 (1 round trip flights x 2 auditors) Ground Transportation (car rental or Uber/taxi) - $800 Hotel accommodation - $3,000 (2 rooms x 4 nights) Food and incidentals – $700 Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 5 Attachment A - Task Orders 4.25, 4.28, and 4.32        Item 5: Staff Report Pg. 6  Packet Pg. 170 of 1138  PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY24-4.28 Dispatch Center Program 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 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340A OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY24-4.28 2.CONSULTANT NAME: Baker Tilly Advisory Group, LP 3.PERIOD OF PERFORMANCE: START: August 15, 2024 COMPLETION: February 28, 2025 4.TOTAL TASK ORDER PRICE: $76,540 $79,040 Increased by $2,500.00 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5.BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6.CITY DEPARTMENT PROJECT MANAGER’S NAME & Lydia Kou, Chair of the City Council’s Policy and Services Committee 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) 8.ATTACHMENT REIMBURSABLE EXPENSES, if a Task Order Scope any of Service “not to exceed” (with amount) B (if any): N/A 9. 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: Baker Tilly Advisory Group, LP BY:____________________________________ Name __________________________________ Title___________________________________ Date _ _________________________ Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Kate Murdock Manager/ City Auditor 12/23/2024 Council Member 12/25/2024 Council Member Lydia Kou Item 5 Attachment A - Task Orders 4.25, 4.28, and 4.32        Item 5: Staff Report Pg. 7  Packet Pg. 171 of 1138  Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: 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) Services & Deliverables Baker Tilly’s approach to conducting an assessment of the Dispatch Center Program involves three (3) primary steps: Step 1: Assessment Planning Step 2: Control Review and Testing Step 3: Reporting Step 1 – Assessment Planning This step consists of the tasks performed to adequately plan the work necessary to address the overall assessment objective and to solidify mutual understanding of the project scope, objectives, process, and timing between stakeholders and auditors. Tasks include: Gather information to understand the environment under assessment o Understand the organizational structure and objectives o Review the City code, regulations, and other standards and expectations o Review prior audit and/or assessment results, as applicable o Review additional documentation and conduct interviews as necessary Write an assessment program o Refine objectives and scope o Identify the assessment procedures to be performed and the evidence to be obtained and examined Announce initiation of the assessment and conduct kick-off meeting with key stakeholders o Discuss objectives, scope, assessment process, timing, resources, and expectations o Discuss documentation and interview requests for the assessment Step 2 – Control Review and Testing This step involves executing the procedures in the assessment program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary assessment objective is to: (1) Determine whether the City’s Dispatch Center Program is operating efficiently and effectively to meet community needs. Procedures include, but are not limited to: Interview the appropriate individuals to gain an understanding of the organizational structure, processes, and controls related to the Dispatch Center Program. Review policies and procedures as well as the legislative and regulatory requirements to identify the criteria to be used for evaluation of control program effectiveness. Review overall Dispatch Center Program performance, including selecting a sample of Dispatch Center Calls to test for efficiency and effectiveness of response and triage for services. Compare the performance, process, and controls against the best practices. Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 5 Attachment A - Task Orders 4.25, 4.28, and 4.32        Item 5: Staff Report Pg. 8  Packet Pg. 172 of 1138  Ste p 3 – Reporting In Step 3, the project team will perform tasks necessary to finalize assessment working papers, prepare and review a draft report with the stakeholders, and submit a final report. Tasks include: Develop findings, conclusions, and recommendations based on the supporting evidence gathered Validate findings with the appropriate individuals and discuss the root cause of the identified findings Complete supervisory review of working papers and a draft report Distribute a draft report and conduct a closing meeting with key stakeholders o o Discuss the results, finings, conclusions, and recommendations o Discuss management responses Obtain written management responses and finalize a report Review report with members of City Council and/or the appropriate Council Committee Deliverables: The following deliverable will be prepared as part of this engagement: Report Schedule of Performance Anticipated Start Date: August 15, 2024 Anticipated End Date: February 28, 2025 Maximum Compensation Amount The not-to exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $76,540. The not-to exceed budget is based on an estimate of 415 total project hours, of which 100 are estimated to be completed by the City Auditor. Reimbursable Expenses If circumstances allow, Baker Tilly anticipates planning one on-site fieldwork week. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $8,500 The following summarizes anticipated reimbursable expenses (for three team members): Round-trip Airfare - $2,000 (3 round trip flights) Ground Transportation (car rental or Uber/taxi) - $1,500 Hotel Accommodation - $3,500 (12 nights) Food and incidentals - $1,500 Confidential Information 1.In the performance of this Task Order, Baker Tilly (“AUDITOR”) may have access to CITY’s Confidential Information (defined below). AUDITOR 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 Task Order and for no other purpose. AUDITOR will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. This includes the use of encrypted, access- controlled storage for any Confidential Information stored in electronic form. Notwithstanding the foregoing, AUDITOR Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 5 Attachment A - Task Orders 4.25, 4.28, and 4.32        Item 5: Staff Report Pg. 9  Packet Pg. 173 of 1138  may disclose Confidential Information to its employees, agents and subcontractors, if any, only to the extent they have a need to know in order to perform AUDITOR’s obligations to CITY under this Task Order and for no other purpose, and provided that the AUDITOR informs them of, and requires them to follow, the confidentiality and security obligation s of this Task Order. 2.“Confidential Information” means all data, information, and materials of a non-public, proprietary or confidential nature, in any form or medium, tangible or intangible, provided or otherwise made available to AUDITOR by CITY, directly or indirectly, pursuant to this Task Order. For this Task Order, such Confidential Information may include dispatch calls, dispatch radio/phone traffic (including recordings, summaries, and transcripts of such traffic), dispatch logs and computer-aided dispatch (CAD) data, observations of the dispatch service (including recordings, summaries, notes, and transcripts of such observation), any information protected by law obtained by AUDITOR in conducting this Task Order (including but not limited to criminal background data, customer utility data, medical information, mental health conservatorship data, witness and victim identities protected by law, law enforcement intelligence, law enforcement investigations, law enforcement personnel file information protected by law, and “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time)). In addition to the Confidential Information itself, AUDITOR agrees that deliberations, conversations and discussions pertaining to the Confidential Information shall be kept confidential and shall not be disclosed without approval of CITY, and any required reporting incorporating Confidential Information will present findings in de-identified or summary formats as agreed by the Parties. 2.1. Exceptions: Confidential Information excludes information that AUDITOR can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become pub licly known other than by a breach of this Agreement and is not otherwise protected from further sharing by law; (ii) was rightfully in AUDITOR’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfu lly obtained by AUDITOR from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of AUDITOR without any use of or access to the Confidential Information; or (v) AUDITOR has written consent to disclose signed by an authorized representative of CITY. 2.2 Confidential Markings: As practicable, the Confidential Information shall be marked with the words “Confidential” or “Confidential Material” or with words of similar import. To the extent possible, t he disclosing party (whether CITY or AUDITOR) shall endeavor to mark any electronic document intended to be covered by the terms of these confidentiality provisions with the words “Confidential” or similar words, shall notify the receiving parties (for example, by cover e-mail transmitting the electronic document) that the electronic document is Confidential Information, and, for documents shared via encrypted cloud storage, shall file such Confidential Information in folders so labeled. The City’s failure, for whatever reason, to mark any material at the time it is produced to the AUDITOR, or to notify AUDITOR that oral or electronic material is Confidential Information at the time it is provided, shall not remove the material from the coverage of these confidentiality obligations, and the AUDITOR shall treat the material as Confidential Information once the CITY has notified it that the material is to be covered by these provisions. 3.Notwithstanding the foregoing, AUDITOR may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that AUDITOR will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless AUDITOR is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 5 Attachment A - Task Orders 4.25, 4.28, and 4.32        Item 5: Staff Report Pg. 10  Packet Pg. 174 of 1138  4.AUDITOR 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, AUDITOR will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 5.Prior to or upon termination or expiration of this Task Order, AUDITOR 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 AUDITOR. Notwithstanding the return or destruction of tangible Confidential Information as contemplated by this subsection, AUDITOR and its representatives will continue to be bound by all obligations of confidentiality with respect to the CITY’s Confidential Information. Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 5 Attachment A - Task Orders 4.25, 4.28, and 4.32        Item 5: Staff Report Pg. 11  Packet Pg. 175 of 1138  16 PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY25-4.32 CSD Equipment and Materials Inventory Management 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 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340A OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340A 1B. TASK ORDER NO.: FY25-4.32 2. CONSULTANT NAME: Baker Tilly Advisory Group, LP 3. PERIOD OF PERFORMANCE: START: January 1, 2025 COMPLETION: June 30, 2025 4. TOTAL TASK ORDER PRICE: $89,900 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Lydia Kou, Chair of the City Council’s Policy and Services Committee 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): N/A Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Kate Murdock 12/23/2024 Manager/ City Auditor Council Member Council Member Lydia Kou 12/25/2024 Item 5 Attachment A - Task Orders 4.25, 4.28, and 4.32        Item 5: Staff Report Pg. 12  Packet Pg. 176 of 1138  17 Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: 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) Services & Deliverables Baker Tilly’s approach to conducting an internal audit of the Community Services Department Equipment and Materials Inventory Management three (3) primary steps: Step 1: Audit Planning Step 2: Fieldwork and Testing Step 3: Reporting Step 1 – Audit Planning This step consists of the tasks performed to adequately plan the work necessary to address the overall audit objective and to solidify mutual understanding of the audit scope, objectives, audit process, and timing between stakeholders and auditors. Tasks include: Gather information to understand the environment under review o Understand the environment under assessment o Assess the City code, regulations, and other standards and expectations o Assess prior audit results, as applicable o Assess additional documentation and conduct interviews as necessary Assess the audit risk Prepare an audit planning memo and audit program o Refine audit objectives and scope o Identify the audit procedures to be performed and the evidence to be obtained and examined Announce the initiation of the audit and kick-off meeting with key stakeholders o Discuss audit objectives, scope, audit process, timing, resources, and expectations o Discuss documentation and interview requests for the audit Step 2 – Fieldwork and Testing The step involves executing the procedures in the audit program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives The preliminary audit objective is to determine if the Community Services Department Equipment and Materials Inventory Management system is operating effectively and efficiently: Interviewing the appropriate individuals to gain an understanding of the equipment and materials inventory management system Analyze policies and procedures related to equipment and material management and procurement to identify the criteria to be used for evaluation of control design and effectiveness Compare processes and controls against best practices Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 5 Attachment A - Task Orders 4.25, 4.28, and 4.32        Item 5: Staff Report Pg. 13  Packet Pg. 177 of 1138  18 Step 3 – Reporting In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and review a draft report with stakeholders, and submit a final report for management response. Tasks include: Developing findings, conclusions, and recommendations based on the supporting evidence gathered Validating findings with appropriate individuals and discuss the root cause of the identified findings Complete supervisory review of working papers and a draft audit report Distribute a draft audit report and conduct a closing meeting with key stakeholders o Discuss the audit results, findings, conclusions, and recommendations o Discuss management responses Obtain written management responses and finalize a report Review report with members of City Council and/or the appropriate Council Committee Deliverables: The following deliverables will be prepared as part of this engagement: Audit Report Policy & Services Committee Audit Report Presentation Schedule of Performance Anticipated Start Date: January 1, 2025 Anticipated End Date: June 30, 2025 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $89,900. The not-to-exceed budget is based on an estimate of 500 total project hours, of which a minimum of 40 are estimated to be completed by the City Auditor. Reimbursable Expenses We plan to complete all work remote including all interviews and documentation review. However, during the planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to perform a portion of the work on-site. Given this possibility, Baker Tilly could incur expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $6,500. The following summarizes anticipated reimbursable expenses: Round-trip Airfare – $2,000 (1 round trip flight x 2 auditors) Ground transportation – $800 (car rental or Uber/taxi) Hotel accommodation – $3,000 (2 rooms x 4 nights) Food & Incidentals – $2,100 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 5 Attachment A - Task Orders 4.25, 4.28, and 4.32        Item 5: Staff Report Pg. 14  Packet Pg. 178 of 1138  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Human Resources Meeting Date: June 16, 2025 Report #:2505-4650 TITLE Approval of the Council Appointed Officers (CAO) Committee‘s Recommendation to Approve the CAO Annual Evaluation Process, Timeline, and Questions; and Approval of Professional Services Contract Number C25193915 with the Municipal Resources Group, LLC (MRG) in an Amount Not to Exceed $208,500 for Council Appointed Officer Performance Evaluation Services for a Period of Three Years. CEQA Status - Not A Project RECOMMENDATION The CAO Committee recommends approval of the CAO annual evaluation process timeline, the CAO self-evaluation questions and Council interview questions for the annual evaluation process (Attachment A), and staff recommends that the City Council approve and authorize the Mayor or designee to execute Contract Number C25193915 with MRG (Attachment B), to provide CAO performance evaluation services, for a three year term, and a total amount not to exceed $208,500, including $144,000 for basic services and $64,500 for additional services. BACKGROUND The City Manager, City Attorney, City Auditor and City Clerk are appointed directly by the City Council and, as such, are reviewed by the City Council on an annual basis in accordance with their individual employment agreements. The City Auditor is also appointed directly by the City Council however the City contracts for internal auditing services with Baker Tilly under the terms of the contract. Such review is necessary for Council members to ensure the efficiency of the appointed offices, to provide general feedback on their performance, to set goals for the coming year, and to identify areas of improvement. It is also necessary to review compensation to ensure that the positions are paid appropriately in comparison to the market and their performances. Given that a need exists for objectivity and facilitation as well as the time commitment in meeting with seven City Council members, the four CAO’s, and the CAO Committee, the use of an outside consultant increases efficiency. Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 1  Packet Pg. 179 of 1138  The Council Appointed Officers (CAO) Committee met on November 26, 20241 to review and debrief regarding the 2023-2024 CAO performance evaluation process, as well as to discuss the next steps for the CAO performance evaluation services contract. The CAO Committee strongly supported continuing with a facilitator and unanimously approved to request a proposal for services. The MRG proposal was reviewed by Mayor Lauing as well as the 2025 CAO Committee Chair, Greer Stone and the CAO Committee and was recommended for Council to approve services to be negotiated with MRG. ANALYSIS 2. This contract had the option to extend the term for up to two additional years through 2022. Council then approved a three-year contract extension (C22185281) with this current contract ending June 20, 2025 with a total annual cost of $51,200 and a not-to-exceed amount of $153,600. 3, the CAO Committee recommended to the Council that the CAO Committee Chair negotiate a new professional services contract with MRG for the CAO performance evaluation services with the existing consultant and facilitator. The Council approved (passed 7- 0). The new professional services contract with MRG in an amount not to exceed $208,500 for a period of up to three years is attached (Attachment B) and was provided to the CAO Chair for final review. Contract Overview The contract engages MRG to facilitate the annual performance evaluation and compensation adjustment process for the City’s four CAOs. Scope of Services: •Preparation of Evaluation Tools: Development of customized questionnaires in coordination with the Council CAO Committee. •Interview & Evaluation: Individual interviews with all seven Council Members and CAOs; preparation of a comprehensive written evaluation report; facilitation of evaluation discussions during closed sessions. •Compensation Review: Recommendations to Council CAO Committee and assistance in compensation discussions and negotiations. 1 CAO Committee Meeting, November 26, 2024, Action Item #2, Special Meeting https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16465 2 City Council Meeting, June 25, 2018, Item #9148, https://www.paloalto.gov/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2018/id-9148.pdf 3 City Council, April 7, 2025, Agenda Item #14, SR #2503-4356, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16024 Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 2  Packet Pg. 180 of 1138  •Optional Additional Services: 1.Executive Salary Analysis (compensation benchmarking from comparable jurisdictions) 2.Direct Reports Feedback (360-degree evaluation from senior staff using an online survey tool) Following this, the CAO Committee met on May 12, 20254 to review and discuss the timeline for the annual evaluation process, to review the CAO self-evaluation questions and the Council interview questions and give direction to the evaluation process facilitator. The CAO Committee agreed with the timeline proposed and made suggestions to each of the CAO self-evaluation questions and Council interview questions as seen in Attachment A. FISCAL/RESOURCE IMPACT This contract is funded through the Council budget. There is no fiscal impact in FY 2026, as funds have already been allocated to cover costs for the first year of the contract. Costs for future years will be addressed through the City’s annual budget process. STAKEHOLDER ENGAGEMENT Public comment was made during the CAO Committee review on May 12, 2025 and opportunity was available when report was on the Council Consent agenda on April 7, 2025. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because approval of and execution of a professional services contract for facilitating CAO performance evaluations is a continuing administrative activity. CEQA Guidelines section 15378(b)(2). ATTACHMENTS Attachment A: CAO Evaluation Timeline and Interview Materials Attachment B: Contract with Municipal Resources Group, LLC; Contract # C25193915 APPROVED BY: Sandra Blanch, Human Resources Director 4 CAO Committee Meeting, May 12, 2025, Action Item #1, Special Meeting https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17368 Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 3  Packet Pg. 181 of 1138  Item 6 Attachment A - CAO Evaluation Timeline and Interview Materials        Item 6: Staff Report Pg. 4  Packet Pg. 182 of 1138  Item 6 Attachment A - CAO Evaluation Timeline and Interview Materials        Item 6: Staff Report Pg. 5  Packet Pg. 183 of 1138  Item 6 Attachment A - CAO Evaluation Timeline and Interview Materials        Item 6: Staff Report Pg. 6  Packet Pg. 184 of 1138  Item 6 Attachment A - CAO Evaluation Timeline and Interview Materials        Item 6: Staff Report Pg. 7  Packet Pg. 185 of 1138  Item 6 Attachment A - CAO Evaluation Timeline and Interview Materials        Item 6: Staff Report Pg. 8  Packet Pg. 186 of 1138  Item 6 Attachment A - CAO Evaluation Timeline and Interview Materials        Item 6: Staff Report Pg. 9  Packet Pg. 187 of 1138  Professional Services Rev. Oct 16, 2024 Page 1 of 23 CITY OF PALO ALTO CONTRACT NO. C25193915 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND MUNICIPAL RESOURCE GROUP, LLC This Agreement for Professional Services (this “Agreement”) is entered into as of the 21st day of June 2025 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MUNICIPAL RESOURCE GROUP, LLC, a California Limited Liability Company, located at P.O. Box 561, Wilton, CA 95693 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to perform the annual performance evaluations and compensation adjustment process for its four (4) Council appointed officials (the “Project”) and desires to engage a consultant to facilitate 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. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 20, 2028 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 Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 10  Packet Pg. 188 of 1138  Professional Services Rev. Oct 16, 2024 Page 2 of 23 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 shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Hundred Forty Four Thousand Dollars ($144,000). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Sixty Four Thousand Five Hundred Dollars ($64,500) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Two Hundred Eight Thousand Dollars ($208,500), as detailed in Exhibit C. “Additional Services” means 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. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized 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 Additional 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. 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 executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 11  Packet Pg. 189 of 1138  Professional Services Rev. Oct 16, 2024 Page 3 of 23 amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. 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 at the address specified in Section 13 (Project Management) below. 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. 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 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 responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 12  Packet Pg. 190 of 1138  Professional Services Rev. Oct 16, 2024 Page 4 of 23 approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will 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 related 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 without 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, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Mary Egan, Telephone: (916) 261-7547, Email: egan@solutions-mrg.com 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, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 13  Packet Pg. 191 of 1138  Professional Services Rev. Oct 16, 2024 Page 5 of 23 CITY’s Project Manager is Sandra Blanch, Human Resource Department, 250 Hamilton Avenue, Palo Alto, CA, 94301, Telephone: (650) 329-2294. 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 14. 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 officers, 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. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 14  Packet Pg. 192 of 1138  Professional Services Rev. Oct 16, 2024 Page 6 of 23 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 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 15  Packet Pg. 193 of 1138  Professional Services Rev. Oct 16, 2024 Page 7 of 23 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 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 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. Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 16  Packet Pg. 194 of 1138  Professional Services Rev. Oct 16, 2024 Page 8 of 23 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 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. 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 Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 17  Packet Pg. 195 of 1138  Professional Services Rev. Oct 16, 2024 Page 9 of 23 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, CONSULTANT 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 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 CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. 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 Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 18  Packet Pg. 196 of 1138  Professional Services Rev. Oct 16, 2024 Page 10 of 23 (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”. This Project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. OR 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 Agreement 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, directly 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 confidentiality 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. Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 19  Packet Pg. 197 of 1138  Professional Services Rev. Oct 16, 2024 Page 11 of 23 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 requirements 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. 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 unaffected provisions of this Agreement will remain in Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 20  Packet Pg. 198 of 1138  Professional Services Rev. Oct 16, 2024 Page 12 of 23 full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. 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. Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 21  Packet Pg. 199 of 1138  Professional Services Rev. Oct 16, 2024 Page 13 of 23 CONTRACT No. C25193915 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 MUNICIPAL RESOURCE GROUP, LLC By: Name: Title: Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 CEO Mary Egan Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 22  Packet Pg. 200 of 1138  Professional Services Rev. Oct 16, 2024 Page 14 of 23 EXHIBIT A SCOPE OF SERVICES CONSULTANT will provide the Services detailed in this Exhibit 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 will 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 will be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT will 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. CAO PERFORMANCE EVALUATION SERVICES Project Introduction: CONSULTANT to engage by consulting and working directly with City Council to facilitate the annual performance evaluation process for its four (4) Council appointed officials (CAO), City Manager, City Attorney, City Clerk and City Auditor. Project Background: The City Manager, City Clerk, City Attorney and City Auditor are appointed directly by the City Council and, as such, are reviewed by the City Council on an annual basis in accordance with their individual employment agreements. Such review is necessary for Council members to ensure the efficiency of the appointed offices, to provide general feedback on their performance, to set goals for the coming year, and to identify areas of improvement. It is also necessary to review compensation to ensure that the positions are paid appropriately in comparison to the market and their performances. Performance Evaluation: CONSULTANT will use an established approach to Performance Evaluation Processes. Based on a standard practice, CONSULTANT will incorporate Council CAO Committee’s requests to include additional elements or minimize the process to meet expediated timelines and needs. CONSULTANT will annually provide Performance Evaluation Processes to include but not limited to the following:  Summary to identify areas of successful and for professional development;  facilitating a discussion between Council and the Appointed Officials with actionable items to enhance organizational leadership; Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 23  Packet Pg. 201 of 1138  Professional Services Rev. Oct 16, 2024 Page 15 of 23  A 360-degree evaluation requesting input from departmental managers will be conducted as part of this process for the City Auditor and City Clerk; AND  The processing of Appointed Officials to provide a self-assessment to summarize accomplishments and specify progress on established goals. CONSULTANT will facilitate and prepare for CAO Performance Evaluation Processes by performing the following: A. Preparation of Questionnaire: While Coordinating and consulting with Council CAO Committee (four members of the City Council), CONSULTANT will prepare a questionnaire to be used for interviews. The questionnaires will be distributed to Council Members to fill out a week in advance of their scheduled interview/meeting with theCONSULTANT. The questionnaires will be designed to be a tool to summarize Council Members’ estimation of the CAO’s attainment of specific goals, as well as their performance in general areas such as communication; key relationships between the CAO and the Council, staff, public, CITY committees and commissions and other government agencies; as appropriate; specific work priorities such as budget, public relations, program management and employee relations; as well as general comment on the CAO’s performance of their duties. B. Conduct Interviews, Prepare Report, Facilitate Discussion, Prepare Summary: CONSULTANT will interview each of the seven (7) Council Members individually, using the interview questionnaire to gather input and evaluation of CAO performance. CONSULTANT will also interview each CAO to gather their estimation of their performance, achievements, and ability to meet their established goals and performance objectives. CONSULTANT will consolidate information from all interviews and prepare a written evaluation/report, which will first be reviewed with the Council CAO Committee and then presented to the entire Council in closed session. After presentation of the evaluation/reports, CONSULTANT will facilitate Council discussion of the results of the interviews and input. CONSULTANT will then facilitate discussion of the evaluation report between each CAO and the Council. C. Post-Evaluation Support and Compensation Advisory Process: After facilitating the performance evaluation meetings with the Council, CONSULTANT will meet with each CAO to de-brief on Council discussion, and to discuss compensation considerations. The Council CAO Committee will make its salary adjustment recommendations to the full Council. The CONSULTANT will be available as a resource at the meeting with the full Council. The CONSULTANT will also be available as a resource for the Council CAO Committee in its negotiations with individual CAO’s. The CONSULTANT will prepare a complete file for each of the evaluations, including compensation recommendations and actions, for the permanent CITY record. Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 24  Packet Pg. 202 of 1138  Professional Services Rev. Oct 16, 2024 Page 16 of 23 D. Additional Services (Optional): 1. Executive Salary Analysis If requested by CITY Project Manager, CONSULTANT will prepare and collect salary data for the CAO from approximately six comparable jurisdictions. The CONSULTANT will also engage in individual discussions with the Appointed Officials to uncover compensation interests. Subsequently, in memorandum format, the CONSULTANT will relay this information to the Council and assist in facilitating agreement on any compensation adjustments. 2. Direct Reports Feedback If requested by CITY Project Manager, The CONSULTANT will prepare a “Direct Reports” feedback report for the CAO that will solicit input from each member of the senior staff of the Appointed Officials via an online survey tool, seeking information on the CAO's performance and obtaining insight on strengths and potential development opportunities. Deliverables: As directed by CITY Project Manager, CONSULTANT will conduct Performance Evaluation processes detailed in Services, Section “A” through “D” per Council Appointed Official: City Manager, City Attorney, City Clerk, or City Auditor (Appointee). Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 25  Packet Pg. 203 of 1138  Professional Services Rev. Oct 16, 2024 Page 17 of 23 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 ___________________________________ this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 26  Packet Pg. 204 of 1138  Professional Services Rev. Oct 16, 2024 Page 18 of 23 EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY. Milestones Number of Days/Weeks (as specified below) 1. CAO Performance Evaluation Services per Appointee (up to 4) – Year 1 of 3 To be determine (TBD) by CITY Council Meeting reporting date within term of per Appointee (up to 4) – Year 2 of 3 TBD by CITY Council Meeting reporting date within term of Agreement. Year 3 of 3 per Appointee (up to 4) TBD by CITY Council Meeting reporting date within term of Agreement. 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. Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 27  Packet Pg. 205 of 1138  Professional Services Rev. Oct 16, 2024 Page 19 of 23 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth 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. BUDGET SCHEDULE TASK NOT TO EXCEED AMOUNT (CAO Performance Evaluation Services [up to 4 Appointee] – (CAO Performance Evaluation Services [up to 4 Appointee] – (CAO Performance Evaluation Services [up to 4 Appointee] – 144,000 0 Total for Services and Reimbursable Expenses $144,000 Maximum Total Compensation $208,500 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. Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 28  Packet Pg. 206 of 1138  Professional Services Rev. Oct 16, 2024 Page 20 of 23 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: NONE up to the not-to-exceed amount of: $0.00. Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 29  Packet Pg. 207 of 1138  Professional Services Rev. Oct 16, 2024 Page 21 of 23 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates is as follows: *CONSULTANT will complete the work they identify for a fixed fee of $12,000 per appointee evaluation and related goal setting for in-person attendance at a closed session. CONSULTANT will invoice 50% of the contract at the project launch and the remaining 50% after the evaluation: Basic Services Description: Cost: Additional Services (Optional) Description: Cost: Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 30  Packet Pg. 208 of 1138  Professional Services Rev. Oct 16, 2024 Page 22 of 23 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT 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 TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@PALOALTO.GOV 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 Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 31  Packet Pg. 209 of 1138  Professional Services Rev. Oct 16, 2024 Page 23 of 23 CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. 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 BEFORE 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 TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@PALOALTO.GOV Docusign Envelope ID: 6B5C7218-F9DF-46BA-A265-B3493634A7F7 Item 6 Attachment B - Contract with Municipal Resources Group, LLC; Contract # C25193915        Item 6: Staff Report Pg. 32  Packet Pg. 210 of 1138  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Administrative Services Meeting Date: June 16, 2025 Report #:2505-4709 TITLE Recommend the City Council Adopt the Fiscal Year 2026 Investment Policy as Recommended by the Finance Committee: CEQA Status – Not a Project RECOMMENDATION The Finance Committee and staff recommend the City Council approve the City’s Investment Policy (Policy) (Attachment A). ANALYSIS The Investment Policy (Policy) requires that the Policy be reviewed annually, and that any changes be approved by the City Council during the annual budget process. The Policy (and any changes) was reviewed by the Finance Committee on June 3, 20251. Proposed Changes Resulting from the Investment Management Audit The City Auditor issued the Investment Management Audit on December 12, 20232, which contained recommendations for the City to improve its oversight over the City’s investment portfolio, including the following recommendations: 1.Segregation of duties and oversight of investment activities a.Staff should implement a formal process for review and approval of investment activities (complete) b.Continue efforts to adjust staffing levels of the investment function. Additional staffing resources have been hired and is currently being trained. (in process) 2.Supporting documents for investment activities 1 Finance Committee, June 3, 2025, Item #3: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16128 2 City Council, January 16, 2024: https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82641 Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 1  Packet Pg. 211 of 1138  a. Maintain adequate supporting documentation such as cash flow and evaluation of quotations for each investment decision (complete) b. Update Investment Policy to require broker/dealers provide documentation showing their financial condition and relevant registration (complete) As staff performed this review and further researched industry’s best practices related to #2b above, two benchmarks were used to assess brokers and dealers. Broker and Dealer Record Free of Disclosure Events The Financial Industry Regulatory Authority (FINRA), an independent regulator for all securities firms doing business in the United States and regulated by the Federal government, publishes the Broker Check report. The report contains the individual’s experience; current registrations and licenses; and any disclosure events, including customer disputes, disciplinary events, and/or criminal events. The proposed Policy recommends adding criteria that brokers and dealers maintain a record free of disclosure events, evidenced by the individual’s BrokerCheck report. Net Capital Requirement The Securities and Exchange Commission (SEC) amended financial responsibility rules for broker/dealers in 20133 where amendments to net capital, customer protection, and recordkeeping were designed to better protect broker/dealer customers and enhance the SEC’s ability to monitor and prevent unsound business practices. As a result, Rule 15c3-1 was added and requires brokers/dealers to maintain enough liquid assets for each dollar of liabilities, based on specific ratios, to ensure that there are sufficient liquid assets to pay all liabilities to customers. Firm net capital status is a required financial statement disclosure by the SEC. The Proposed policy recommends that net capital requirements, as outlined by SEC Rule 15c3-1, must be met for broker/dealers. Other Proposed Changes In addition to the proposed changes to further refine the Policy to address Investment Management Audit, staff propose these additional improvements to the Policy: 1. Authorized Investments a. Clarify that the Policy is more restrictive than the Government Code and that the more restrictive parameters will take precedence; holding limits and minimum credit quality requirements apply at the time the security is purchased b. Any investments currently held at the time the policy is adopted, which does not meet new policy guidelines, can be held to maturity and will be exempt from the 3 SEC Adopts Amendments to Financial responsibility Rules for Brokers-Dealers, July 31, 2013: https://www.sec.gov/newsroom/press-releases/2013-140 Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 2  Packet Pg. 212 of 1138  current policy. At the time of the investment’s maturity or liquidation, such funds will be reinvested only as provided in the current policy. 2. Policy Review and Reporting on Investments a. Outlined requirements in California Government Code Section 53646, which include a requirement that the quarterly report be reported to Council within 45 days after the end of the quarter and listing the reporting requirements per the Code. 3. Authorized Investment Personnel This change was discussed at the June 3, 2025 Finance Committee meeting and was included in the Committee’s motion. Staff proposes updating the Authorized Investment Personnel section of the policy to include the blended approach of a specialized firm and leveraging staff. This would align with best practice of updating city policy and practices, findings in staff’s research of how other agencies manage the investment function, with city auditor observations, and anticipated higher investment earnings by partnering with an investment management firm. In addition, on the June 17, 2025 Council Consent Agenda4, staff will be recommending that Council approve an agreement for investment management services with a specialized asset portfolio management firm, enabling a blended approach to this function. The City’s current investment management structure is supported by Administrative Services staff and in a recent survey, it was determined that two-thirds of cities within Santa Clara County enlist the expertise of professional investment portfolios managers from specialized firms. FISCAL/RESOURCE IMPACT Approval of the recommendation will not have a financial impact. The additional reporting can be accommodated with existing staff resources. STAKEHOLDER ENGAGEMENT Staff work internally and with external parties (broker/dealers and municipal advisor) to review the Policy and consider new and upcoming industry best practices. ENVIRONMENTAL REVIEW This activity is not a project under the California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because adoption of the investment policy is a government funding mechanisms or fiscal activity which does not involve any commitment to any specific 4 City Council, June 17, 2025, Report #2504-4587 Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 3  Packet Pg. 213 of 1138  project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). ATTACHMENTS APPROVED BY: Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 4  Packet Pg. 214 of 1138  ATTACHMENT A Fiscal Year 2026 Page 1 of 24 4 2 8 9 Proposed Investment Policy Fiscal Year 2026 INTRODUCTION The City of Palo Alto invests its pooled idle cash according to State of California law and the charter of the City of Palo Alto. In particular, the City follows “The Prudent Investor Standard” cited in the State Government Code (Section 53600.3). Under this standard, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. INVESTMENT PHILOSOPHY The basic principles underlying Palo Alto's investment philosophy is to ensure the safety of public funds, provide that sufficient money is always available to meet current expenditures, and achieve a reasonable rate of return on its investments. The City's preferred and chief practice is to buy securities and to hold them to their date of maturity rather than to trade or sell securities prior to maturity. The City may, however, elect to sell a security prior to its maturity should there be a significant financial need. If securities are purchased and held to their maturity date, then any changes in the market value of those securities during their life will have no effect on their principal value. Under a buy and hold philosophy, the City is able to protect its invested principal. The economy, the money markets, and various financial institutions (such as the Federal Reserve System) are monitored carefully to make prudent investments and to assess the condition of the City’s portfolio. Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 5  Packet Pg. 215 of 1138  ATTACHMENT A Fiscal Year 2026 Page 2 of 24 4 2 8 9 INVESTMENT OBJECTIVES The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: 1.Safety: Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. a) Credit risk is the risk that an obligation will not be paid and a loss will result. The City will seek to minimize this risk by:  Limiting investment to the safest types of securities or minimum credit quality rating as listed in the “Authorized Investment” section  Diversifying its investments among the types of securities that are authorized under this investment policy b) Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investor’s portfolio. For example, an investor with large holdings in long-term bonds has assumed significant interest rate risk because the value of the bonds will fall if interest rates rise. The City can minimize this risk by: Buying and holding its securities until maturity  Structuring the investment portfolio so that securities mature to meet cash flow requirements To further achieve the objective of safety, the amount that can be invested in all investment categories, excluding obligations of the U.S. Government and its agencies, is limited either as a percentage of the portfolio or by a specific dollar amount. These limits are defined under the “Authorized Investments” section. 2. Liquidity: Liquidity is the second most important objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by maintaining a portion of the portfolio in liquid money market mutual funds or local government investment pools. In addition, the City will maintain one month’s net cash needs in short term and/or liquid investments and at least $50 million shall be maintained in securities maturing in less than two years. Although the City’s practice is to buy and hold securities to maturity, since all possible cash demands cannot be anticipated, the portfolio will consist of securities with active secondary or resale markets should the need to sell a security prior to maturity arises. Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 6  Packet Pg. 216 of 1138  ATTACHMENT A Fiscal Year 2026 Page 3 of 24 4 2 8 9 3. Yield: Yield on the City’s portfolio is last in priority among investment objectives. The investment portfolio shall be designed to obtain a market rate of return that reflects the authorized investments, risk constraints, and liquidity needs outlined in the City’s investment policy. Compared to similar sized cities, the City of Palo Alto should be able to take advantage of its relatively large reserve balances to achieve higher yields through long-term investments. In addition, the City will strive to maintain the level of investment of idle funds as close to 100 percent as possible. ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RESPONSIBILITIES In addition to and subordinate to the Safety, Liquidity, and Yield investment objectives, investments that support sound environmental, social and governance (ESG) objectives are also considered. While the City’s portfolio is not classified as an ESG portfolio, investments in entities that support community well-being through practices that emphasize safe and environmentally sound objectives; fair labor practices; and equality of rights regardless of sex, race, age, disability, or sexual orientation, is encouraged. Direct investments in entities that manufacture tobacco products, firearms, and engage in direct production or drilling of fossil fuels is discouraged. This section applies to new investments (after November 5, 2018) only and does not require divestment of existing investments. Investments in Certificates of Deposit (CDs) and Negotiable Certificates of Deposit are exempt from the ESG investing objective. SCOPE A. This investment policy shall apply to all financial assets of the City of Palo Alto as accounted for in the Annual Comprehensive Financial Report (ACFR), including but not limited to the following funds: 1. General Fund 2. Special Revenue Funds 3. Debt Service Funds 4. Capital Project Fund 5. Enterprise Funds 6. Internal Service Funds 7. Trust and Agency Funds B. The policy does not cover funds held by the California Public Employees Retirement System (CalPERS), the California Employers’ Retiree Benefit Trust (CERBT), Deferred Compensation programs (e.g. ICMA, Hartford), the Authority for California Cities Excess Liability (ACCEL), and the Public Agency Retirement Services (PARS) Section 115 Irrevocable Trust. Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 7  Packet Pg. 217 of 1138  ATTACHMENT A Fiscal Year 2026 Page 4 of 24 4 2 8 9 C. Investments of bond proceeds shall be governed by the provisions of the related bond indentures. GENERAL INVESTMENT GUIDELINES AUTHORIZED INVESTMENTS Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 8  Packet Pg. 218 of 1138  ATTACHMENT A Fiscal Year 2026 Page 5 of 24 4 2 8 9 investments to the guidelines listed below. In the event there is a difference between the Policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits and minimum credit quality requirements listed in this section apply at the time the security is purchased. U.S. Government Securities (e.g. Treasury notes, bonds and bills) Securities that are backed by the full faith and credit of the United States U.S. Government Agency Securities – Obligations issued by the Federal Government agencies (e.g. Federal National Mortgage Association, etc.).  Callable and Multi-step-up securities provided that: California State, California Local Government Agencies, and other United States State Bonds Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 9  Packet Pg. 219 of 1138  ATTACHMENT A Fiscal Year 2026 Page 6 of 24 4 2 8 9 c) Investments include: i)Registered state warrants or treasury notes or bonds of the State of California and bonds, notes, warrants, or other evidences of indebtedness of any local agency within California, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by the state or local agency or by a department, board, agency, or authority of the state or local agency. ii)Registered treasury notes or bond of any of the 49 United States in addition to the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency or authority of any of the other 49 United States, in addition to the State of California. 4.Certificates of Deposit (CD) - A debt instrument issued by a bank for a specified period of time at a specified rate of interest. Purchase of CD’s are limited to: a) May not exceed 20 percent of the par value of the portfolio. 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 service (e.g. Moody’s, Fitch, and/or Standard and Poor’s). d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC). – See Appendix C e) Rollovers are not permitted without specific instruction from authorized City staff. 5.Banker's Acceptance Notes (BA) – Bills of exchange or time drafts drawn on and accepted by commercial banks. Purchase of banker’s acceptances are limited to: a) No more than 30 percent of the par value of the portfolio. b) Not to exceed 180 days maturity. Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 10  Packet Pg. 220 of 1138  ATTACHMENT A Fiscal Year 2026 Page 7 of 24 4 2 8 9 c) No more than $5 million with any one institution. 6.Commercial Paper - Short-term unsecured obligations issued by banks, corporations, and other borrowers. Purchases of commercial paper are limited to: a) Having highest letter or numerical rating as provided for by a nationally recognized rating service (e.g. Moody’s, Fitch, and/or Standard and Poor’s). b) No more than 15 percent of the par value of the portfolio. 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. 7.Local Agency Investment Fund (LAIF) – A State of California managed investment pool may be used up to the maximum permitted by California State Law. 8.Short-Term Repurchase Agreements (REPO) – A contractual agreement between a seller and a buyer, usually of U.S. government securities, whereby the seller agrees to repurchase the securities at an agreed upon price and, usually, at a stated time. Purchases of REPO’s must: a) Not to exceed 1 year. 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. c) A Master Repurchase agreement must be signed with the bank or dealer. 9.Money Market Deposit Accounts – Liquid bank accounts which seek to maintain a net asset value of $1.00. 10.Mutual Funds which seek to maintain a net asset value of $1.00 and which are limited essentially to the above investments and further defined in note 9 of Appendix A a) No more than 20 percent of the par value of the portfolio. b) No more than 10 percent of the par value with any one institution. Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 11  Packet Pg. 221 of 1138  ATTACHMENT A Fiscal Year 2026 Page 8 of 24 4 2 8 9 11.Negotiable Certificates of Deposit (NCD) issued by nationally or state-chartered banks and state or federal savings institutions and further defined in note 11 of Appendix A. Purchases of negotiable certificates of deposit: a) May not exceed 20 percent of the par value of the portfolio. b) No more than $5 million in any one institution. 12.Medium-Term Corporate Notes – Issued by corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating with the United States. a) Not to exceed 5 years maturity. b) Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally recognized rating service (e.g. Moody’s, Fitch, and/or Standard & Poor’s). c) No more than 10 percent of the par value of the portfolio. 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 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. 13.Supranational Organizations Securities – Supranational organizations refer to International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC) and Inter-American Development Bank (IADB). a. Securities will not exceed 5 years maturity. b. No more than 20 percent of the par value of the portfolio. c. No more than 10 percent of the par value with any one institution. d. Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally recognized rating service (e.g. Moody’s, Fitch, and/or Standard & Poor’s). e. Limited to United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, and IADB. Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 12  Packet Pg. 222 of 1138  ATTACHMENT A Fiscal Year 2026 Page 9 of 24 4 2 8 9 Appendix A provides a more detailed description of each investment vehicle and its security and liquidity features. Most of the City's short-term investments will be in securities which pay principal upon maturity, while long-term investments may be in securities that periodically repay principal, as well as interest. Most of the City's investments will be at a fixed rate. However, some of the investments may be at a variable rate, so long as that rate changes on specified dates in pre-determined increments. PROHIBITED INVESTMENTS: Includes all investments not specified above, and in particular: 1. Reverse repurchase agreements 2. Derivatives, as defined in Appendix B Appendix B provides a more detailed description of each investment, which is prohibited, for City investment. AUTHORIZED INVESTMENT PERSONNEL Idle cash management and investment transactions are the responsibility of the Administrative Services Department. The Administrative Services Department is under the control of the Director of Administrative Services (Director), as treasurer, who is subject to the direction and supervision of the City Manager. The Assistant Directors of Administrative Services (Assistant Director), who reports to the Director, are authorized to make all investment transactions allowed by the Statement of Investment Policy. The Assistant Director may authorize the Manager of Treasury, Debt & Investments (Manager), and/or Senior Management Analyst (Manager and/or Analyst), and/or designated investment firm (Firm) to enter into investments within clearly specified parameters. The Investment function is under the supervision of the Assistant Director. The Assistant Director is charged with the responsibility to manage the investment program (portfolio), which includes developing and monitoring the City's cash flow model and developing long-term revenue and financing strategies and forecasts. The Manager, and/or Analyst, and/or Firm are subject to the direction and supervision of the Assistant Director. The Manager, and/or Analyst, and/or Firm assist the Assistant Director, in the purchase and sale of securities. The Manager, and/or Analyst, and/or Firm also prepare the quarterly report, and record daily all investment transactions as to the type of investment, amount, yield, and maturity. Cash flow projections are prepared as needed. In all circumstances, approval from the Director of Administrative Services is required before Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 13  Packet Pg. 223 of 1138  ATTACHMENT A Fiscal Year 2026 Page 10 of 24 4 2 8 9 selling securities from the City's portfolio. The Manager and/or Analyst may also transfer no more than a total of $10 million a day from the City's general account to any one financial institution, without the prior approval of the Assistant Director. USE OF BROKERS AND DEALERS SAFEKEEPING AND CUSTODY Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 14  Packet Pg. 224 of 1138  ATTACHMENT A Fiscal Year 2026 Page 11 of 24 4 2 8 9 b) City shares in pooled investment funds, under contract. c) Mutual funds d) Local Agency Investment Fund (LAIF) POLICY REVIEW AND REPORTING ON INVESTMENTS Monthly, the Administrative Services Department will review performance in relation to Council adopted Policy. Per California Government Code Section 53646, quarterly, the Department will report to Council (within 45 days after the end of the quarter) investment activity, including: the portfolio’s performance in comparison to policy, explain any variances from policy, provide any recommendations for policy changes, and discuss overall compliance with the City’s Investment Policy. In addition, the Department will provide Council with: a) An asset listing showing par value, cost and independent third-party fair market value of each security as of the date of the report, the source of the valuation, type of investment, issuer, maturity date and interest rate. b) A description of the funds, investments and programs (including lending programs) managed by contracted parties (i.e. LAIF; LGIPS, outside money managers and securities lending agents) c) A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution, A detailed list of all securities, investments and monies held by the City, and a)d)Report on the City’s ability to meet expenditure requirements over the next six months. Per California Government Code Section 53607, the Department shall provide a monthly report of transactions (investments, reinvestment, sold, and exchanged securities) made during the month to the Council. This reporting requirement is separate and distinct from the quarterly investment report submitted under Code Section 53646. Annually, the Administrative Services Department will present a Proposed Statement of Investment Policy, to include the delegation of investment authority, to the City Council for review during the annual budget process. All proposed changes in policy must be approved by the Council prior to implementation. Adopted by City Council October 22, 1984 Amended by City Council June 17, 2003 Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 15  Packet Pg. 225 of 1138  ATTACHMENT A Fiscal Year 2026 Page 12 of 24 4 2 8 9 Monthly reporting effective January 1985 Amended by City Council June 28, 2004 Amended and Adopted by City Council June 24, 1985 Amended by City Council June 20, 2005 Amended by City Council December 2, 1985 Amended by City Council June 12, 2006 Amended by City Council June 23, 1986 Amended by City Council June 11, 2007 Amended by City Council June 22, 1987 Amended by City Council June 09, 2008 Amended by City Council August 8, 1988 Amended by City Council June 15, 2009 Amended by City Council November 28, 1988 Amended by City Council June 28, 2010 Amended by City Council June 26, 1989 Amended by City Council June 20, 2011 Amended by City Council May 14, 1990 Amended by City Council June 18, 2012 Amended by City Council June 24, 1991 Amended by City Council June 03, 2013 Amended by City Council June 22, 1992 Amended by City Council June 16, 2014 Amended by City Council June 23, 1993 Amended by City Council June 15, 2015 Amended by City Council June 20, 1994 Amended by City Council June 13, 2016 Amended by City Council June 19, 1995 Amended by City Council June 27, 2017 Amended by City Council June 24, 1996 Amended by City Council November 5, 2018 Amended by City Council June 23, 1997 Amended by City Council June 24, 2019 Amended by City Council January 26, 1998 Adopted by City Council June 22, 2020 Amended by City Council June 22, 1998 Amended by City Council June 21, 2021 Amended by City Council June 28, 1999 Adopted by City Council June 20, 2022 Amended by City Council June 19, 2000 Adopted by City Council June 19, 2023 Amended by City Council June 11, 2001 Amended by City Council June 17, 2024 Amended by City Council June 17, 2002 Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 16  Packet Pg. 226 of 1138  ATTACHMENT A Fiscal Year 2026 Page 13 of 24 4 2 8 9 APPENDIX A 1.U.S. Government Securities: United States Treasury notes, bonds, bills, or certificates of indebtedness or those for which the faith and credit of the United States are pledged for the payment of principal and interest. 2.U.S. Government Agency Securities: U.S. Government Agency Obligations include the securities of the Federal National Mortgage Association (FNMA), Federal Land Banks (FLB), Federal Intermediate Credit Banks (FICB), banks for cooperatives, Federal Home Loan Banks (FHLB), Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Student Loan Marketing Association (SLMA), Small Business Administration (SBA), Federal Farm Credit (FFC), and Federal Agricultural Mortgage Corporation (FAMC or FMAC). Federal Agency securities are debt obligations that essentially result from lending programs of the Government. Federal agency securities differ from other types of securities, as well as among themselves. Their characteristics depend on the issuing agency. It is possible to distinguish three types of issues: (A) participation certificates (pooled securities), (B) Certificates of interest (pooled loans), (C) notes, bonds, and debentures. The securities of a few agencies are explicitly backed by the full faith and credit of the U.S. Government. All other issues purchased by the City have the de facto backing from the federal government, and it is highly unlikely that the government would let any agency default on its obligations. 3.Certificates of Deposit: A certificate of deposit (CDs) is a receipt for funds deposited in a bank, savings bank, or savings and loan association for a specified period of time at a specified rate of interest. Denominations are $250,000 and up. The first $250,000 of a certificate of deposit is guaranteed by the Federal Deposit Insurance Corporation (FDIC), if the deposit is with a bank or savings bank, or the Savings Association Insurance Fund (SAIF), if the deposit is with a savings and loan. CDs with a face value in excess of $250,000 can be collateralized by U.S. Government Agency and Treasury Department securities or first mortgage loans. Government securities must be at least 110 percent of the face value of the CD collateralized in excess of the first $250,000. The value of first mortgages must be at least 150 percent of the face value of the CD balance insured in excess of the first $250,000. Generally, CDs are issued for more than 30 days and the maturity can be selected by the purchaser. 4.Bankers' Acceptance: A Banker's Acceptance (BA) is a negotiable time draft or bill of exchange drawn on and accepted by a commercial bank. Acceptance of the draft irrevocably obligates the bank to pay the bearer the face amount of the draft at maturity. BAs are usually created to finance the import and export of goods, the shipment of goods within the United States and storage of readily marketable staple commodities. In over 70 years of usage in the United States, there has been no known instance of principal loss to Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 17  Packet Pg. 227 of 1138  ATTACHMENT A Fiscal Year 2026 Page 14 of 24 4 2 8 9 any investor in BAs. In addition to the guarantee by the accepting bank, the transaction is identified with a specific commodity. Warehouse receipts verify that the pledged commodities exist, and, by definition, these commodities are readily marketable. The sale of the underlying goods generates the necessary funds to liquidate the indebtedness. BAs enjoy marketability since the Federal Reserve Bank is authorized to buy and sell prime BAs with maturities of up to nine months. The Federal Reserve Bank enters into repurchase agreements in the normal course of open market operations with BA dealers. As are sold at a discount from par. An acceptance is tied to a specific loan transaction; therefore, the amount and maturity of the acceptance is fixed. 5.Commercial Paper: Commercial paper notes are unsecured promissory notes of industrial corporations, utilities, and bank holding companies. Interest is discounted from par and calculated using actual number of days on a 360-day year. The notes are in bearer form, with maturities up to 270 days selected by the purchaser, and denominations generally start at $100,000. There is a small secondary market for commercial paper notes and an investor may sell a note prior to maturity. Commercial paper notes are backed by unused lines of credit from major banks. Some issuer's notes are insured, while some are backed by irrevocable letters of credit from major banks. State law limits a City to investments in United States corporations having assets in excess of five hundred million dollars with an "A" or higher rating by a nationally recognized rating service for the issuer's debentures. Cities may not invest more than 25 percent of idle cash in commercial paper. 6.Local Agency Investment Fund Demand Deposit: The Local Agency Investment Fund LAIF) was established by the State to enable treasurers to place funds in a pool for investments. The City is limited to an investment of the amount allowed by LAIF (currently $75 million). LAIF has been particularly beneficial to those jurisdictions with small portfolios. Palo Alto uses this fund for short-term investment, liquidity, and yield. 7.Repurchase Agreements: A Repurchase Agreement (REPOS) is not a security, but a contractual arrangement between a financial institution or dealer and an investor. The agreement normally can run for one or more days. The investor puts up funds for a certain number of days at a stated yield. In return, the investor takes title to a given block of securities as collateral. At maturity, the securities are repurchased and the funds repaid, plus interest. Usually, amounts are $500,000 or more, but some REPOS can be smaller. 8.Money Market Deposit Accounts: Money Market Deposit Accounts are market-sensitive bank accounts, which are available to depositors at any time, without penalty. The interest rate is generally comparable to rates on money market mutual funds, though any individual bank's rate may be higher or lower. These accounts are insured by the Federal Deposit Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 18  Packet Pg. 228 of 1138  ATTACHMENT A Fiscal Year 2026 Page 15 of 24 4 2 8 9 Insurance Corporation or the Savings Association Insurance Fund. 9.Mutual Funds: Mutual funds are shares of beneficial interest issued by diversified management companies, as defined by Section 23701 M of the Revenue and Taxation Code. To be eligible for investment, these funds must: a) Attain the highest ranking in the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services; or b) Have an investment advisor registered with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations, as authorized by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code, and with assets under management in excess of five hundred million dollars; and c) Invest solely in those securities and obligations authorized by Sections 53601 and 53635 of the California Government Code. Where the Investment Policy of the City of Palo Alto may be more restrictive than the State Code, the Policy authorizes investments in mutual funds that shall have minimal investment in securities otherwise restricted by the City's Policy. Minimal investment is defined as less than 5 percent of the mutual fund portfolio; and d) The purchase price of shares of beneficial interest purchased shall not include any commission that these companies may charge. e) Have a net asset value of $1.00. 10.Callable Securities and Multi-Step-ups: Callable securities are defined as fixed interest rate government agency securities that give the issuing agency the option of returning the invested funds at a specific point in time to the purchaser. Multi-step-ups are government agency securities in which the interest rate increases ("steps-up") at preset intervals, and which also have a callable option that allows the issuing agency to return the invested funds at a preset interval. Callable and multi-step-ups are permitted, 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. Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 19  Packet Pg. 229 of 1138  ATTACHMENT A Fiscal Year 2026 Page 16 of 24 4 2 8 9 11.Negotiable Certificates of Deposit (NCD): NCDs are large-dollar-amount, short-term certificate of deposit. Such certificates are issued by large banks and bought mainly by corporations and institutional investors. They are payable either to the bearer or to the order of the depositor, and, being negotiable, they enjoy an active secondary market, where they trade in round lots of $5 million. Although they can be issued in any denomination from $100,000 up, the typical amount is $1 million also called a Jumbo Certificate of Deposit. Medium-Term Corporate Notes: All corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. According to California Government Code Section 53601, “Notes eligible for investment under this subdivision shall be rated in a rating category of “A” or its equivalent or better by a nationally recognized rating service. Purchase of medium-term notes shall include other instruments authorized by this section and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section.” Supranational Securities: California Government Code Section53601 defines allowable supranational securities as United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, the International Finance Corporation, and Inter- American Development Bank. Supranationals are well capitalized and in most cases have strong credit support from contingent capital calls from their member countries. Section 53601 was amended effective January 1, 2015 to allow local agencies to invest in the senior debt obligations of these three supranational issuers which are eligible for purchase and resale within the United States. These entities were established with the purpose of ending poverty and raising the standard of living around the world through sustainable economic growth. International Bank for Reconstruction and Development (IBRD or World Bank), a member of the World Bank Group, provides direct loans and guarantees to sovereigns and government-backed projects International Finance Corporation (IFC), a member of the World Bank Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 20  Packet Pg. 230 of 1138  ATTACHMENT A Fiscal Year 2026 Page 17 of 24 4 2 8 9 Group, supports the creation and growth of private companies through direct lending and equity investment, attracting third party capital, and providing advisory services Inter-American Development Bank (IADB), a member of the Inter-American Development Bank Group, provides loans, grants, and guarantees to sovereigns in Latin America and the Caribbean b) Additional characteristics shared by the IBRD, IFC, and IADB include: Headquartered in Washington, D.C. with the United States as the largest shareholder of each organization Rated AAA/Aaa by S&P and Moody’s Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 21  Packet Pg. 231 of 1138  ATTACHMENT A Fiscal Year 2026 Page 18 of 24 4 2 8 9 APPENDIX B 1.Reverse Repurchase Agreements: A Reverse Repurchase Agreement (Reverse REPO) is a contractual agreement by the investor (e.g. local agency) to post a security it owns as collateral, and a bank or dealer temporarily exchanges cash for this collateral, for a specific period of time, at an agreed-upon interest rate. During the period of the agreement, the local agency may use this cash for any purpose. At maturity, the securities are repurchased from the bank or dealer, plus interest. California law contains a number of restrictions on the use of Reverse REPOS by local agencies. 2.Derivatives: A derivative is a financial instrument created from, or whose value depends on (is derived from), the value of one or more underlying assets or indices. The term "derivative" refers to instruments or features, such as collateralized mortgage obligations, forwards, futures, currency and interest rate swaps, options, caps and floors. Except for those callable and multi-step-up securities as described under Permitted Investments, derivatives are prohibited. Certain derivative products have characteristics which could include high price volatility, liquid markets, products that are not market-tested, products that are highly leveraged, products requiring a high degree of sophistication to manage, and products that are difficult to value. According to California law, a local agency shall not invest any funds in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 22  Packet Pg. 232 of 1138  ATTACHMENT A Fiscal Year 2026 Page 19 of 24 4 2 8 9 APPENDIX C Federal agency and instrumentality securities. The price at which securities are offered. The price offered by a buyer of securities (when one sells securities, one asks for a bid). See “Offer”. A person or institution that conducts investment transactions on behalf of the buyer and seller of the investment and earns a commission on the transaction. Securities, evidence of deposit, or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. The official annual report for the City of Palo Alto. It includes combined financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles and pronouncements set forth by the Governmental Accounting Standards Board (GASB). The ACFR also includes supporting schedules that are necessary to demonstrate compliance with finance- related legal and contractual provisions, extensive introductory material, and a detailed statistical section. The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value or the certificate attached to a bond evidencing interest due on a payment date. A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. A bond secured only by the general credit of the issuer. There are two methods of delivery of securities: (1) delivery versus payment (DVP); and (2) delivery versus receipt (DVR). DVP is delivery of securities with an exchange of money for the securities. DVR is delivery of securities with an exchange of a signed receipt for the securities. The difference between the acquisition cost of a security and its value at maturity when quoted at lower than face value. A security that sells below original offering price shortly after sale, is also is considered to be at a discount. Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 23  Packet Pg. 233 of 1138  ATTACHMENT A Fiscal Year 2026 Page 20 of 24 4 2 8 9 DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued a discount and that are redeemed at maturity for full face value (e.g., U.S. Treasury Bills). DIVERSIFICATION: Dividing investment funds among a variety of securities that offer independent returns. FEDERAL AGRICULTURAL MORTGAGE CORPORATION (“FAMC” or “FMAC”): A federal agency established in 1988 to provide a secondary market for farm mortgage loans. Informally called Farmer Mac. FEDERAL CREDIT AGENCIES: Agencies of the Federal Government that were established to supply credit to various classes of institutions and individuals (e.g., S&Ls, small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (“FDIC”): A federal agency that insures all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, money market deposit account (MMDA) or time deposit such as a certificate of deposit (CD). FDIC insurance covers depositors' accounts at each insured bank, dollar-for-dollar, including principal and any accrued interest through the date of the insured bank's closing, up to the insurance limit. The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank. The FDIC does not insure U.S. Treasury bills, bonds or notes, but these investments are backed by the full faith and credit of the United States government. The standard maximum deposit insurance amount is described as the “SMDIA” in FDIC regulations. The SMDIA is $250,000 per depositor, per insured bank. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL HOME LOAN BANKS (“FHLB”): Government-sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing-related assets of its members, who must purchase stock in their District Bank. FEDERAL NATIONAL MORTGAGE ASSOCIATION (“FNMA”): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 24  Packet Pg. 234 of 1138  ATTACHMENT A Fiscal Year 2026 Page 21 of 24 4 2 8 9 corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE (“FOMC”): The FOMC consists of seven members of the Federal Reserve Board and five of the 12 Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of government securities in the open market, as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (“GNMA” or “Ginnie Mae”): Securities that influence the volume of bank credit that is guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. A security holder is protected by the full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FMHM mortgages. The term “pass-throughs” is often used to describe Ginnie Maes. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow, and reasonable amount can be done at those quotes. LOCAL GOVERNMENT AGENCY: A local government agency is any city, county, city and county, district, or other local governmental body or corporation, including the California State Universities (CSU) and University of California (UC) systems, K-12 schools and community colleges empowered to expend public funds. LOCAL GOVERNMENT INVESTMENT FUND (“LAIF”): Monies from local governmental units may be remitted to the California State Treasurer for deposit in this special fund for the purpose of investment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer (lender) to liquidate the underlying securities in the event of default by the seller (borrower). Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 25  Packet Pg. 235 of 1138  ATTACHMENT A Fiscal Year 2026 Page 22 of 24 4 2 8 9 MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (e.g., bills, commercial paper, and bankers’ acceptances) are issued and traded. OFFER: The price asked by a seller of securities (when one buys securities, one asks for an offer). See “Asked” and “Bid”. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool. PORTFOLIO: A collection of securities that an investor holds. PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions, and monthly financial statements to the Federal Reserve Bank of New York, and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -- registered securities broker-dealers, banks, and a few unregulated firms. PRUDENT INVESTOR RULE: An investment standard cited in the California Government Code Section 53600 et seq. Under this standard, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. QUALIFIED PUBLIC DEPOSITORIES: A financial institution that: (1) does not claim exemption from the payment of any sales, compensating use, or ad valorem taxes under the laws of this state; (2) has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability; and (3) has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 26  Packet Pg. 236 of 1138  ATTACHMENT A Fiscal Year 2026 Page 23 of 24 4 2 8 9 SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES AND EXCHANGE COMMISSION: An agency created by Congress to administer securities legislation for the purpose of protecting investors in securities transactions. STRUCTURED NOTES: Notes issued by instrumentalities (e.g., FHLB, FNMA, SLMA) and by corporations, that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) in their debt structure. The market performance of structured notes is affected by fluctuating interest rates; the volatility of imbedded options; and shifts in the yield curve. SUPRANATIONALS: International institutions that provide development financing, advisory services and/or financial services to their member countries to achieve the overall goal of improving living standards through sustainable economic growth. The California Government Code Section 53601 allows local agencies to purchase the United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IADB). TIME CERTIFICATE OF DEPOSIT: A non-negotiable certificate of deposit, which cannot be sold prior to maturity. TREASURY BILLS: A non-interest-bearing discount security that is issued by the U.S. Treasury to finance the national debt. Most T-bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of two to 10 years. YIELD: The rate of annual income return on an investment, expressed as a percentage. YIELD-TO-CALL (YTC): The rate of return an investor earns from a bond assuming the bond is redeemed (called) prior to its nominal maturity date. YIELD-TO-MATURITY: The current income yield minus any premium above par or plus any Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 27  Packet Pg. 237 of 1138  ATTACHMENT A Fiscal Year 2026 Page 24 of 24 4 2 8 9 discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity. ZERO-COUPON SECURITIES: Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity. Item 7 Attachment A - Proposed FY 2026 Investment Policy        Item 7: Staff Report Pg. 28  Packet Pg. 238 of 1138  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Human Resources Meeting Date: June 16, 2025 Report #:2505-4737 TITLE Adoption of Memoranda of Agreement with International Association of Fire Fighters (IAFF) Local 1319, Fire Chiefs Association (FCA), and Utilities Managers and Professionals Association of Palo Alto (UMPAPA) for Terms Ending June 30, 2028, and Adoption of the Updated Management and Professional Compensation Plan and Corresponding Salary Schedules; CEQA Status – Not a Project RECOMMENDATION Staff recommend that the City Council: 1) Adopt the Memoranda of Agreement (MOAs), and all associated salary schedules, between the City of Palo Alto and the: a. International Association of Fire Fighters (IAFF) Local 1319; b. Fire Chiefs Association (FCA); c. Utilities Managers and Professionals Association of Palo Alto (UMPAPA); and 2) Adopt the updated Management and Professional Compensation Plan covering unrepresented employees and the associated salary schedules, effective the first full pay period following Council adoption through June 30, 2028 BACKGROUND As a public agency under California law, the City of Palo Alto must meet and confer in good faith with recognized employee organizations on matters relating to wages, hours, and terms and conditions of employment. Following thoughtful and thorough negotiations, City representatives reached tentative agreement with IAFF, FCA, and UMPAPA. IAFF, FCA, and UMPAPA have ratified the tentative agreement. An updated compensation plan has been developed for the City’s unrepresented management and professional employees. These agreements align with the City's labor strategy to emphasize recruitment and maintaining competitive salaries to attract top talent; to continue improving employee retention and reduce turnover, and to foster a positive work environment to continue being an Employer of Choice. Each agreement builds upon key themes of equity, competitiveness, and Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 1  Packet Pg. 239 of 1138  operational sustainability as well as focusing on fiscal responsibility. The current agreements expire on June 30, 2025. ANALYSIS These agreements reflect a coordinated effort to standardize core elements across bargaining groups and the City’s unrepresented workforce, supporting long-term financial planning and operational consistency. General wage increases and health care contribution adjustments are applied uniformly; each agreement also includes tailored adjustments—such as market-based or certification-related compensation—that address the distinct needs of each group. These targeted adjustments are intended to strengthen the City's ability to attract and retain talent in competitive labor markets and will be detailed in the subsequent sections. Additionally, language updates across the agreements improve clarity, align with current practices, and support operational efficiency. Common Elements Across All Agreements and Compensation Plan: • Term: July 1, 2025 – June 30, 2028 (3-year term) • Cost of Living Adjustments (COLA): ο FY 2026: 3% ο FY 2027: 3% ο FY 2028: 3% • Medical Contributions: ο July 2025: alignment with SEIU (all units will be on one flat rate) ο Jan 2026: None ο Jan 2027: 4% increase in flat-rate contributions ο Jan 2028: 4% increase in flat-rate contributions • Market-Based or Certification-Based Enhancements (Unit Specific) IAFF – International Association of Fire Fighters, Local 1319 Unit Description: The International Association of Fire Fighters represents front-line fire personnel including Firefighters, Apparatus Operators, Fire Captains, and Inspection. This unit is comprised of 96 full time equivalent “FTE” and is responsible for daily fire suppression and prevention activities. This agreement supports continuity of emergency response services and sustainable staffing enhancements creating a pathway for future Council direction around use of single role classifications and promotes long-term retention of trained public safety professionals through introduction of an education-based incentive program. Summary of Specifics: • Market-based Adjustments Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 2  Packet Pg. 240 of 1138  ο FY 2026: None ο FY 2027: 0.75% ο FY 2028: 0.75% • Education Incentive ο FY 2026: None ο FY 2027: Tier 1: 2.5% ο FY 2028: Tier 2: 5% FCA – Fire Chiefs’ Association Unit Description: The Fire Chiefs’ Association represents Fire Battalion Chiefs “BC” who oversee, manage, and supervise day to day operations of the fire department. This unit is comprised of four FTE: three shift BCs and one training BC. The City has at least one Battalion Chief on duty at all times. This agreement ensures equity and alignment between our BC classifications and the line staff who they supervise. Considering fiscal constraints in the FY 2026 budget process, FCA and City representatives collaborated to develop cost-savings through deferred compensation without roll-up and to move the majority of market-based adjustments to later years of the agreement. Summary of Specifics: • Market-based Adjustments ο FY 2026: 1.5% ο FY 2027: None ο FY 2028: 2% • Deferred Compensation ο FY 2026: Increase to $300/month (previously $220/month) ο FY 2027: Increase to $600/month ο FY 2028: Remain at $600/month UMPAPA – Utilities Managers and Professionals Association of Palo Alto Unit Description: Represents managers, engineers, and professionals across Utilities Operations, including Electric, Water, Gas, Wastewater, and Fiber. The unit is comprised of 54 FTE. The agreement provides targeted adjustments for positions key to completing large-scale projects, such as grid modernization, in an effort to promote, attract, and retain staff in hard- to-fill technical and regulatory roles. Summary of Specifics: • 6% strategic market adjustment for Electrical Engineering positions (Principal, Manager) • 4% strategic market adjustment for WGW Engineering positions (Principal, Manager) Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 3  Packet Pg. 241 of 1138  • Market adjustment of 0.7% for the Administrative job family Management and Professional Compensation Plan (Unrepresented) Group Description: The Management and Professional Compensation Plan covers managers and professionals not represented by a labor union. The group is comprised of 247.75 FTE. These employees span department directors, division managers, supervisors and analysts from all city departments. This compensation reinforces internal equity and consistency with represented counterparts and ensures a minimum salary differential between managerial/supervisory classifications and the represented classifications they supervise. Summary of Specifics: • Targeted compaction-based increases to the salary range to ensure differential from supervised classifications for: Senior Technologist, Chief Transportation Official, Public Safety Communications Manager, and Manager Solid Waste. Adjustments to the range do not necessarily result in a corresponding salary increase to the incumbents in the position unless to address a current compaction issue. Any individual adjustments will be done at the discretion of the City Manager in alignment with the Management and Professional Compensation Plan. • $500 increase in Management excess benefit (from $2,500/year to $3,000/year) • Creation of the Principal Transportation Engineer Classification to improve the management oversight of the transportation engineering work. The salary of this new position will be 7% above the Senior Engineer. The Table of Organization will be amended to add a 1.00 FTE Principal Transportation Engineer position and eliminate a 1.00 Senior Engineer position as part of the FY 2026 Budget Adoption (Staff Report # 2503-4250) also scheduled for the June 16, 2025 City Council meeting. FISCAL/RESOURCE IMPACT Adoption of the MOAs for IAFF, FCA, and UMPAPA and the updated Management and Professionals compensation plan will result in estimated cost increases of $14.5 million in the General Fund and $22.4 million across all funds over the three-year term, ending June 30, 2028. The first-year contract costs are incorporated into the FY 2026 budget, scheduled for adoption on June 16, 2025 (Staff Report # 2503-4250). Costs for years two and three of the contracts were included in the General Fund long-range financial forecast and financial forecasts for the City‘s various utilities; however, final estimates may vary based on actual staffing levels, classification changes, and health plan enrollment. Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 4  Packet Pg. 242 of 1138  STAKEHOLDER ENGAGEMENT All MOAs and compensation plans were ratified by the respective bargaining units and reviewed by internal stakeholders. Following Council adoption, documents will be publicly posted. ENVIRONMENTAL REVIEW The proposed Council action is not a project under the California Environmental Quality Act (CEQA), as it involves organizational and administrative activities. (CEQA Guidelines, Section 15378(b)(2)) ATTACHMENTS Attachment A: MOA – IAFF Local 1319 Attachment B: MOA – FCA Attachment C: MOA – UMPAPA Attachment D: Management & Professional Compensation Plan Attachment E: IAFF Local 1319 Salary Schedule Attachment F: FCA Salary Schedule Attachment G: UMPAPA Salary Schedule Attachment H: Management and Professional Salary Schedule APPROVED BY: Sandra Blanch, Human Resources Director Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 5  Packet Pg. 243 of 1138  1 MEMORANDUM OF AGREEMENT Between CITY OF PALO ALTO and I.A.F.F. LOCAL 1319 January 30, 2023 uly 1, 2025 – June 30, 20285 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 6  Packet Pg. 244 of 1138  2 PREAMBLE __________________________________________________________ 7 ARTICLE I - RECOGNITION _____________________________________________ 7 Section 1. Recognition. ______________________________________________________ 7 ARTICLE II - NO DISCRIMINATION _______________________________________ 7 Section 1. No Discrimination. __________________________________________________ 7 Section 2. Free Choice. ______________________________________________________ 7 Section 3. Human Relations Committee. _________________________________________ 7 ARTICLE III - PAYROLL DEDUCTIONS ____________________________________ 7 Section 1. Payroll Deductions and Written Authorization. ____________________________ 8 Section 2. Certification of Union Membership _____________________________________ 8 Section 3. Indemnification ____________________________________________________ 8 ARTICLE IV - UNION ACTIVITIES ________________________________________ 8 Section 1. On-Duty Time. _____________________________________________________ 8 Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. ______________________________ 8 Section 3. Use of Meeting Places. ______________________________________________ 9 ARTICLE V - NO STRIKES ______________________________________________ 9 Section 1. No Strikes. ________________________________________________________ 9 ARTICLE VI - PROBATIONARY PERIOD __________________________________ 9 Section 2. Part of Testing Process. _____________________________________________ 9 Section 3. Suspension or Termination. __________________________________________ 9 ARTICLE VII - SALARY PROVISIONS ____________________________________ 10 Section 1. Base Wage Rates. ________________________________________________ 10 Section 2. Out-of-Class Compensation. _________________________________________ 11 Section 3. Salary Steps _____________________________________________________ 11 Section 4. Pay for Court Appearance. __________________________________________ 12 Section 4. Classifications ____________________________________________________ 13 ARTICLE VIII - PAY DIFFERENTIALS ____________________________________ 13 f. Paramedic Differential. _________________________________________________ 14 Section 2. Emergency Medical Technician Certification. _________________________ 14 Section 3. Bilingual Pay _____________________________________________________ 14 Section 4. Special Operations Assignment (Haz Mat) _____________________________ 15 Section 5. Fire Investigator Differential. ________________________________________ 15 Section 6. Education Incentive _____________________________________________ 15 ARTICLE IX - HOLIDAYS ______________________________________________ 16 Section 1. Named Holidays. __________________________________________________ 16 Section 2. Conditions. ______________________________________________________ 17 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 7  Packet Pg. 245 of 1138  3 ARTICLE X - OVERTIME COMPENSATION _______________________________ 18 Section 1. Compensation. ___________________________________________________ 18 ARTICLE XI - APPARATUS STAFFING ___________________________________ 18 ARTICLE XII - WORK ASSIGNMENTS AND TRANSFERS ____________________ 18 Section 1. Shipouts. _______________________________________________________ 19 Section 2. Vacation Relief Positions. ___________________________________________ 19 Section 3. Transfer Requests. ________________________________________________ 19 Section 4. Special Assignments. ______________________________________________ 20 Section 5. Continuous Hourly Service. __________________________________________ 20 ARTICLE XIII - TRAINING COORDINATION _______________________________ 20 Section 1.Coordination ______________________________________________________ 20 ARTICLE XIV - PROMOTION ___________________________________________ 21 Section 1. Promotion Step Level. ______________________________________________ 21 Section 2. Promotion Process Information. ______________________________________ 21 ARTICLE XV - REDUCTION IN FORCE ___________________________________ 21 Section 1. Order of Reduction. ________________________________________________ 21 ARTICLE XVI - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY ______ 21 Section 1. In Case of Emergency ______________________________________________ 21 ARTICLE XVII - HEALTH BENEFITS _____________________________________ 22 Section 1. Maintenance of Levels _____________________________________________ 22 Section 2. Vision Care ______________________________________________________ 22 Section 3. PEMHCA Health Plan. _____________________________________________ 22 ARTICLE XVIII - DENTAL BENEFITS _____________________________________ 25 Section 1. Level of Benefits. __________________________________________________ 25 Section 2. Premiums. _______________________________________________________ 25 ARTICLE XIX - LIFE INSURANCE _______________________________________ 25 ARTICLE XX - RETIREMENT BENEFITS __________________________________ 26 Section 1. PERS Retirement Formula. __________________________________________ 26 Section 2. PERS Member Contribution. ________________________________________ 27 Section 3. Additional Employee PERS contributions _______________________________ 27 Section 4. Option 2 Death Benefit. _____________________________________________ 27 Section 5. Military Service Credit. _____________________________________________ 28 Section 6. 1959 Survivor Benefit. _____________________________________________ 28 Section 7. Employer Contributions to 457 Plan ___________________________________ 28 ARTICLE XXI - RETIREMENT MEDICAL PLAN_____________________________ 28 Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: ____ 28 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 8  Packet Pg. 246 of 1138  4 Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: ____________________________________________________ 28 ARTICLE XXII - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) ________ 29 Section 1. DCAP. __________________________________________________________ 29 ARTICLE XXIII - VACATION ACCRUAL __________________________________ 29 Section 1. Accrual Rate. _____________________________________________________ 29 Section 2. Unused At Termination. _____________________________________________ 30 Section 3. Limits. __________________________________________________________ 30 ARTICLE XXIV - USE OF VACATION ____________________________________ 30 Section 1. Maximum Number of Slots __________________________________________ 30 Section 2. Approvals. _______________________________________________________ 30 Section 3. Vacation Pay. ____________________________________________________ 30 Section 4. Illness on Vacation. ________________________________________________ 30 Section 5. When to be Taken. ________________________________________________ 30 Section 6. Limitation on Use. _________________________________________________ 31 Section 7. Waiting Period. ___________________________________________________ 31 Section 8. Double Compensation Prohibited. _____________________________________ 31 Section 9. Cash out Option. __________________________________________________ 31 ARTICLE XXV - SICK LEAVE ___________________________________________ 31 Section 1. Statement of Policy. _______________________________________________ 31 Section 2. Eligibility ________________________________________________________ 31 Section 3. Accrual. _________________________________________________________ 31 Section 4. Accumulation. ____________________________________________________ 31 Section 5. Use. ____________________________________________________________ 31 Section 6. Depletion of Sick Leave Benefits. _____________________________________ 32 Section 7. Forfeiture Upon Termination. ________________________________________ 32 Section 8. Payment for Accumulated Sick Leave. _________________________________ 32 Section 9. Personal Business Leave Chargeable to Sick Leave. ______________________ 32 Section 10. Return to Work or Continue Work With Limited Duty. _____________________ 33 ARTICLE XXVI - SUBPOENAS __________________________________________ 33 ARTICLE XXVII - WORKERS' COMPENSATION ____________________________ 33 Section 1. Status Reporting While on Disability. __________________________________ 33 ARTICLE XXVIII - PHYSICAL FITNESS MEDICAL EXAMINATIONS ____________ 33 ARTICLE XXIX- LEAVES OF ABSENCE WITHOUT PAY _____________________ 33 Section 1. Disability. ________________________________________________________ 33 Section 2. Other Leaves. ____________________________________________________ 34 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 9  Packet Pg. 247 of 1138  5 Section 3. Accrued Vacation Credits. ___________________________________________ 34 Section 4. Approval of Department Head ________________________________________ 34 Section 5. Approval by City Manager. __________________________________________ 34 Section 6. Absence Without Leave. ____________________________________________ 34 Section 7. Leave of Absence; Death Outside the Immediate Family. __________________ 34 Section 8. Military Leave of Absence ___________________________________________ 34 Section 9. Use of paid accruals while on leave. ___________________________________ 34 ARTICLE XXX - LEAVES OF ABSENCE WITH PAY _________________________ 34 Section 1. City Manager Granted Leaves. _______________________________________ 34 Section 2. Council Granted Leave. _____________________________________________ 34 Section 3. Employee's Time Off to Vote. ________________________________________ 35 Section 4. Leaves of Absence; Death in Immediate Family. _________________________ 35 Section 5. Jury Duty; Leave of Absence. ________________________________________ 35 ARTICLE XXXI – VOLUNTEER LEAVE PROGRAM _________________________ 35 ARTICLE XXXII- TUITION REIMBURSEMENT _____________________________ 37 Section 1. Options. _________________________________________________________ 37 ARTICLE XXXIII - PER DIEM TRAVEL EXPENSES__________________________ 37 Section 1. City Business. ____________________________________________________ 37 ARTICLE XXXIV - HOUSE FUND ITEMS __________________________________ 37 Section 1. Station House Fund. _______________________________________________ 37 Section 2. Non-Food House Items _____________________________________________ 37 ARTICLE XXXV- PARKING ____________________________________________ 37 Section 1. Entitlements. _____________________________________________________ 37 ARTICLE XXXVI- GRIEVANCES ________________________________________ 37 Step II ___________________________________________________________________ 38 Step III __________________________________________________________________ 38 Step IV __________________________________________________________________ 39 ARTICLE XXXVII- SAFETY COMMITTEE _________________________________ 40 Section 1. Committee _______________________________________________________ 40 ARTICLE XXXVIII – MISCELLANEOUS ___________________________________ 40 Section 1. Section 1. Uniforms. _______________________________________________ 40 Section 2. Removal of Disciplinary Actions. ______________________________________ 40 ARTICLE XXXIX - FULL UNDERSTANDING _______________________________ 40 Section 1. Full and Entire Understanding ________________________________________ 40 Section 2. Fair Labor Standards Act. ___________________________________________ 41 Section 3. Severability. ______________________________________________________ 41 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 10  Packet Pg. 248 of 1138  6 Section 4. Good Faith. ______________________________________________________ 41 Section 5. Merit System Rules and Regulations. __________________________________ 41 Section 6. Station Consolidation or Relocation ___________________________________ 41 Section 7. Meet and Confer. __________________________________________________ 41 ARTICLE XL – 48/96 Work Schedule ____________________________________ 41 ARTICLE XLI – FUTURE SERVICE DELIVERY MODELS _____________________ 41 ARTICLE XLII - DURATION ____________________________________________ 41 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 11  Packet Pg. 249 of 1138  7 MEMORANDUM OF AGREEMENT CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319 January 30, 2023 - June 30, 2025 PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and Local 1319, International Association of Fire Fighters, hereinafter referred as the "Union", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. Recognition. The City recognizes the Union as the exclusive representative of an employee group consisting solely of the classifications of Fire Apparatus Operator, Fire Fighter, Fire Captain, Fire Captain (forty-hour assignment), Fire Inspector Sworn and Non-Sworn, Hazardous Materials Specialist, and Hazmat Inspector, who are regularly employed by the City and others as amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. ARTICLE II - NO DISCRIMINATION Section 1. No Discrimination. The Union and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Union, or participation in the lawful activities of the Union. Section 2. Free Choice. The Union and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. Section 3. Human Relations Committee. A Human Relations Committee will include up to five members appointed by the Union executive board and at least two members of management with representation from the Fire and Human Resources Departments. The committee may make recommendations to management regarding recruitment outreach, equal employment opportunity and career development programs. ARTICLE III - PAYROLL DEDUCTIONS Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 12  Packet Pg. 250 of 1138  8 Section 1. Payroll Deductions and Written Authorization. The City shall deduct Union membership dues assessments and insurances authorized by the Union. This will be accomplished by payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on a Union authorization card. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to be made. The City will direct employee requests to cancel or change deductions to the Union. The City shall remit the deducted dues to the Union as soon as possible after deduction. Section 2. Certification of Union Membership. The Union agrees to provide the City an initial certified list of members and statement that the Union has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made. From that point forward the Union will update the list whenever there are changes. Section 3. Indemnification. The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article. The Union shall comply with all statutory and legal requirements with respect to this article. ARTICLE IV - UNION ACTIVITIES Section 1. On-Duty Time. Local 1319 officers may use a reasonable amount of on- duty time to attend to Union business specifically related to representation of employees so long as: a. Staffing is available b. Operations are not interrupted c. Advance approval is obtained from the Battalion Chief or Operations Chief Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. The Union shall have access to interoffice mail and existing bulletin boards in unit employee work areas for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, result of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Operations Chief or Fire Chief. Action on approval will be taken within 24 hours of submission. The Union may send e-mail messages only for the purposes set forth above. The I.T. Division will maintain the IAFF list. The Union access to e-mail is based on the following conditions: a. E-Mails to the IAFF list will be copied to the Fire Chief or Operations Chief at distribution. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 13  Packet Pg. 251 of 1138  9 b. E-Mails to the IAFF list will only be sent by the Executive Board Members. Section 3. Use of Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during non-working hours or as subject to Battalion Chief approval. Such meeting places will be made available in conformity with City regulations and subject to the limitations of prior commitment. ARTICLE V - NO STRIKES Section 1. No Strikes. The Union, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Union, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE VI - PROBATIONARY PERIOD Section 1. Tentative and Subject to Probationary Period. All original appointments to regular or part-time municipal service positions shall be tentative and subject to a probationary period. TWith the exception of the Fire Inspector (Non-Sworn) classification, this probationary period shall include the fire training academies and an additional fourteen (14) to sixteen (16) months after completion of the academies (including in-house academy), excluding time off for extended leaves of absence. The probationary period will end at the sooner of 16 months or the completion of all probationary testing, inclusive of driver II certification. All original appointments to Fire Inspector (Sworn or Non-Sworn) classifications shall serve a twelve (12) month probationary period, commencing with the first day of employment in the classification. Promotion from a non-sworn to a sworn position will be subject to the applicable Probationary Period. Section 2. Part of Testing Process. The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing all aspects of the employee's qualifications, for ensuring the effective adjustment of a new employee to the position and for rejecting any probationary employee who, in the opinion of management, is not suitable to attain permanent status. Section 3. Suspension or Termination. During the probationary period a new employee may be suspended or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. Said employee shall not have the right to proceed to arbitration on the issue of arbitrability or on the issue of its constitutional or discovery rights, nor those of any employee by reason of the Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 14  Packet Pg. 252 of 1138  10 foregoing. The Union shall not be a party to any lawsuit relating to the termination of a probationary employee. ARTICLE VII - SALARY PROVISIONS Section 1. Base Wage Rates. a. The base wage rates of bargaining unit classifications will be as set forth in Appendix A of this MOA. b. General Salary Increase Effective the first full pay period following July 1, 2025, the salary ranges of all represented classifications will be increased by three percent (3%). Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by three half percent (3%) Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by three percent (3%). c. Market Increase: Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by three-fourths of one percent (0.75%). Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by three-fourths of one percent (0.75%). Market Increase: Effective the first full pay period including the adoption of the MOA, the salary ranges of all represented classifications will receive a market adjustment of five percent (5.0%).Addition of Salary Step: Effective the first full pay period including adoption of this MOA by City Council, the City will implement a new step 6 (5% above Step 5) following the same percentage difference as steps 1-5. Any employee who is already at Step 5 on the date the City Council adopts the MOA will move to Step 6 effective the first full pay period following City Council adoption of the MOA. Any employee in the Firefighter classification who is already at Step 4 on the date the City Council adopts the MOA whichever is later will move to Step 5 effective the first full pay period following City Council adoption of the MOA. The employees moved to Step 5 pursuant to this paragraph will move to Step 6 upon one year of service at Step 5 so long as they receive a satisfactory Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 15  Packet Pg. 253 of 1138  11 performance evaluation. General Salary Increase: Effective the first full pay period following July 1, 2023, the salary ranges of all represented classifications will be increased by four percent (4.0%).General Salary Increase: Effective the first full pay period following July 1, 2024, the salary ranges of all represented classifications will be increased by four percent (4.0%).Market Adjustment Part 2: Effective the first full pay period following January 1, 2025, the salary ranges of all represented classifications will receive a market adjustment of two percent (2.0%). Total Compensation and Survey Database Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. Section 2. Out-of-Class Compensation. All represented employees who are assigned work in a higher classification for longer than four (4) continuous hours will be compensated at a higher pay rate for all hours worked during the out-of-class assignment. This provision applies as follows: Fire Fighter, Apparatus Operator, Captain or Inspector working in a higher classification: Step to step. Representation unit classification working as a Battalion Chief, 10% above 6th-Step Captain, but not to exceed 93% ofof the salary range of the Battalion Chief control point. Representation unit classification working in any other management position, within the range of the management position. In accordance with Government Code 20480, an employee assigned to work in an “out- of-class appointment” may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 3. Salary Steps Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 16  Packet Pg. 254 of 1138  12 Employees in the Firefighter Rank initially appointed to the first step of the salary range of their classification shall be entitled to a merit increase to step two in the pay range upon successful completion of six (6) months of service, so long as they receive a satisfactory performance evaluation. The date of such increase shall be the first full pay period following the evaluation date. Employees may be appointed to any step in the salary schedule for their classification as recommended by the Fire Chief and approved by the City Manager. Employees appointed to the second step and above are eligible to receive a merit increase the first full pay period following successful completion of twelve (12) months of actual service, so long as they receive a satisfactory performance evaluation. Employees in the Fire Inspector (Non-Sworn) classification shall be entitled to a step increase in the pay range upon successful completion of twelve (12) months of service, so long as they receive a satisfactory performance evaluation. The date of such increase shall be the first full pay period following the evaluation date. Each twelve (12) months of actual service after the evaluation date, each employee receiving a satisfactory performance evaluation shall receive a merit step increase to the next higher step (effective the first full pay period following the evaluation date) until the top step of the pay range for the job class has been reached. An employee shall not receive a merit increase beyond the maximum steps established for the job classification. Section 4. Pay for Court Appearance. Sworn Fire personnel appearing in court for the People shall be compensated as follows: Period Rate Minimum a. Appearance on scheduled day off -half at -hour rate 4 hours b. Any or all court time during scheduled shift -hour rate None scheduled shift not run into shift time) The employee shall remit all fees received for such appearances to the City within thirty Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 17  Packet Pg. 255 of 1138  13 days from the termination of his/her services. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. Section 4. Classifications. The sworn Haz Mat Inspector and positionsworn Fire Inspector classification will be paid at the same level as the Fire Inspector (603Fourt- hour Fire Captain). One Fire Captain position will be assigned to a Fire Captain (Forty-hour Assignment) with the pay set at 5% above the Fire Captain. ARTICLE VIII - PAY DIFFERENTIALS Sworn Unit employees are eligible for the following pay differentials. Notwithstanding any provision of this agreement, eligible employees can receive up to two differentials in addition to the EMT and Paramedic Certification pay. total differential pay shall not exceed seventeen and a half percent (17.5%).Non-Sworn Fire Inspectors will not be eligible for the listed pay differentials. Section 1. Paramedic Assignment a. Section 1. Limit of Eligibility. The City reserves the right to limit eligibility for the Paramedic Program to the Fire Fighter classification. The City may, at its discretion, add other classifications within the represented bargaining unit to meet the need of program changes. Differentials for other classifications will be as provided in Article VIII, Section 1this Article. b. Section 2. Additional Candidate Training. As the Program progresses, Management will assess the need for training additional Paramedic candidates. It is Management's intention to provide for such additional training as necessary for Program continuity. c. Section 3. Incentives. Paramedics will receive a one-time cash payment of $500 for each biennial recertification. This provision applies only to active incumbents of authorized paramedic positions who remain in the paramedic assignment for at least one additional year after recertification. The one year requirement after recertification does not apply to those paramedics who may leave the program Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 18  Packet Pg. 256 of 1138  14 because of work- related injury or illness, or promotion, nor does it apply when a paramedic is asked by management to recertify in order to voluntarily extend their paramedic service to meet special departmental needs for a period of less than one year. d. Section 4. Proctoring. Paramedic proctoring assignments will be made by the Chief from among qualified volunteers. Payment of $600 will be made to the primary proctoring paramedic at the conclusion of each proctoring assignment. The Chief or his or hertheir designee will maintain a list of qualified proctors from among volunteers. Personnel will be selected by the Fire Chief or his or her designee from the list to serve as paramedic proctors. If a conflict arises between the City and the Union regarding the Proctor Program, either side may suspend the program at the annual renewal period and shall remain suspended until a resolution or agreement is reached. e. Section 5. Field Training Stipend. Employees assigned to provide field training for new paramedic accreditation will receive a $300 stipend to train a new paramedic or EMT to successful completion of paramedic accreditation. This assignment is at the discretion of the Chief or their designee. e.f. Paramedic Differential. Paramedics who have completed the required training and have been accredited in accordance with the program and possess their paramedic license, will receive a 14% differential in addition to their base salary effective beginning with the date of assignment to rotational Paramedic duty. The Paramedic salary differential will terminate with the cessation of assignment to rotational Paramedic duty. The base salary for Captain classification (including Hazmat Inspector and Fire Inspector) base salary will be increased 1% in alignment with this differential increase.. Section 24. Emergency Medical Technician DifferentialCertification. The former 3% EMT differential pay was rolled into base pay constituting the City’s incentive payment for EMT skills. All employees hired into sworn positions must maintain a current EMT certification as a condition of employment. Employees, including Paramedics, shall receive a three percent (3%) differential in addition to their base salary for the EMT certification. The EMT differential will be provided the first pay period following graduation from an entry level academy or on date of hire where an academy is not required. In the event an employee’s EMT certification expires, the employee will be taken off the line and placed in an unpaid status until the employee can submit proof of EMT recertification. Section 3. Bilingual Pay Employees who have successfully demonstrated proficiency in any of the approved Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 19  Packet Pg. 257 of 1138  15 languages shall receive a 5% premium in addition to their base salary. a. Approved Languages: Spanish, Chinese (Mandarin and Cantonese), Japanese, Tagalog, Korean, Vietnamese, Russian, American Sign Language, and such other languages as determined by management. b. Proficiency Requirements The City shall develop and provide a method of testing for proficiency in the above listed languages. The City will pay for the first test in any approved language however subsequent testing will be at the employee’s own expense. An employee must pass the proficiency test to maintain the bilingual pay. The Fire Chief shall have the authority to require employees receiving bilingual pay to re-certify with the Human Resources Department as necessary and reasonable. c. Arbitratability The City’s substantive evaluation of an employee’s knowledge of and skills in a designated second language shall not be subject to the grievance procedure or review by an arbitrator. Section 4. Special Operations Differential Assignment (formerly Haz Mat) A maximum of eighteen positions who are both members of the Special Operations group and assigned the Special Operations, inclusive of Technical Rescue and Hazardous Materials certified personnel, team will receive a 5% differential in addition to their base salary. The differential does not apply to minimum staffing replacements. Section 5. Fire Investigator Differential. A maximum of five six (65) Fire inspector personnel including Haz Mat Inspectors who have been trained as Fire investigators and who are regularly assigned to fire investigation duties by the Chief will receive a 5% differential in addition to their base salary. The Chief reserves the right to determine who is regularly assigned to such duties. Section 6. Education Incentive Employees who have successfully achieved the education and training required for the Career Development program will receive either: Tier 1: 2.5% differential in addition to base salary OR Tier 2: 5% differential in addition to base salary Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 20  Packet Pg. 258 of 1138  16 a. Tier 1: An employee shall be eligible for Tier 1 incentive upon completion of 300 hours of Fire Chief approved job-related coursework. 1. Tier 1 will begin the first full pay period including July 1, 2026. 2. Employees must successfully pass probation in order to become eligible. b. Tier 2: An employee shall be eligible for tier 2 incentive upon completion of 600 hours of Fire Chief approved job-related coursework. 1. Tier 2 will begin the first full pay period including July 1, 2027. 2. Employees must successfully obtain step 4 of the salary schedule in order to become eligible. c. Conditions of Job-related coursework 1. An Associate’s degree from an accredited college or university in public safety field shall count toward 150 hours of job related coursework. A Bachelor’s degree or higher accredited college or university shall count toward 300 hours of job related coursework. 2. Job related coursework completed to hold EMT or Paramedic licensure in this Article will not be eligible to count toward Tier 1 or Tier 2 required job- related coursework. 3. On duty City provided job-related classes will not be eligible. 4. Under no circumstances may duplicative coursework be submitted. d. All education and training completed under this Program must be actively utilized in the course of the employee’s assigned duties. e. A minimum of 32 hours of Fire Chief approved job-related coursework is required every other calendar year in order to maintain the education incentive. f. The employee is responsible for submitting appropriate official transcripts, certificates, and proof of course completion demonstrating completion of all qualifying components. No incentive shall be granted without verified documentation. g. Incentive pay shall begin the first full pay period after approval by the Fire Chief or designee of require documentation. h. The Fire Chief or designee, shall make final determinations regarding course approval, applicability of training, and eligibility for incentive payment. A joint labor-management committee shall meet as needed to discuss the program. ARTICLE IX - HOLIDAYS Section 1. Named Holidays. Holiday pay is compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduling staff without regard to holidays. The following holidays are recognized as municipal holidays for pay purposes, and regular, employees shall have these days off with pay, except as otherwise provided in these rules: Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 21  Packet Pg. 259 of 1138  17 January 1 Veterans’ Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24, or December 31 as provided below First Monday in September Second Monday in October Floating Holiday: In addition to the paid holidays listed above, employees shall be excused with pay for one full work shift as a day of reflection (floating holiday) per calendar year. Eligible employees may use the floating holiday on any day mutually agreed by the employee and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day (June 19) or Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by the end of the fiscal year will be deemed forfeited and have no cash value. 161.5 hours are paid annually to an employee at a rate of 6.21 hours each pay period. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in addition to the normal biweekly base pay. Shift personnel will be paid 6.21 hours of in lieu of holiday pay each pay period. Hours are prorated and accrued based on hours actually worked. Accrued Holiday balances will be automatically paid off in the months of June and December. Section 2. Conditions. a. Personnel assigned to a 40-hour work schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. b. Personnel assigned to a 40-hour work schedule will receive floating days off with pay in each of the following months: August, September, March, April, and June. The following conditions will hold: (1) Management will designate the schedule of the paid day off under this section at least thirty days in advance. (2) If, in conformance with this section, Management is unable to schedule a day off in the month indicated for reasons of shift operations, work scheduling or any other reason, the day will be added to the employee's Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 22  Packet Pg. 260 of 1138  18 vacation accrual. (3) If an employee fails to take a day off as scheduled by Management under this section, the day off so scheduled will be forfeited. ARTICLE X - OVERTIME COMPENSATION Section 1. Compensation. Shift personnel assigned to overtime relief duty in addition to their regular 56-hour shift schedule shall receive overtime compensation at a rate of one and one-half times the employee's basic 56-hour rate, or out-of-class rate if such applies, for all hours of the relief duty shift. Required off-duty training, excluding remedial training, will be compensated at the rate of one and one-half times the basic 40-hour rate or as otherwise agreed. If an opportunity was provided to allow for the required training to be on duty, but the employee was unable to attend, the training scheduled for off duty will not be eligible for the 40-hour rate. Emergency callback will be compensated at a rate of one and one- half times the basic 40-hour rate to a maximum of 8 hours, and at a rate of one and one-half times the basic 56-hour rate for those hours in excess of 8 hours. Overtime duty assignments will first be made from the voluntary overtime list. If such assignments cannot be filled from the voluntary overtime list, the vacant position will be filled by moving up on-shift personnel through out-of class assignment. Any remaining vacancy will then be filled by overtime duty assignment made in reverse order of hire date seniority according to specialty and qualifications required to be assigned. The overtime duty assignment seniority list will be adjusted annually on October 31. ARTICLE XI - APPARATUS STAFFING Engine, truck and combination rescue companies shall be deployed for emergency services purposes at the level of one Fire Captain, one Fire Apparatus Operator and one Fire Fighter. Truck companies have the option of deploying at the level of two Fire Apparatus Operators instead of one Fire Apparatus Operator and one Firefighter. This option shall be determined by seniority. Paramedic ambulance staffing shall be two personnel; the City will dispatch personnel on Emergency Medical Service calls such that a minimum of 1 licensed paramedic responds. The Foothill Fire Station #8, when activated by the Fire Chief, shall be staffed with a minimum of one Fire Apparatus Operator and one Fire Fighter. City may dispatch a two-person apparatus (ex: squad or quick response vehicle) with a minimum of 1 paramedic. ARTICLE XII - WORK ASSIGNMENTS AND TRANSFERS It is the intent of the Palo Alto Fire Administration and Local 1319 that work assignments and transfers will reflect the best interests of the Fire Department and the City. The Fire Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 23  Packet Pg. 261 of 1138  19 Department will maintain a constant state of readiness to defend against fire and other disasters. It is therefore imperative that all Fire Department divisions assign personnel in the best manner to respond to the needs of the City and the Department. It is also acknowledged that the Fire Chief is responsible to make and/or approve the work assignments or transfers of Fire Department personnel. The Fire Chief or designee will maintain a three year station and shift assignment, seniority-based bid system covering the following classifications within Fire Operations on a rotational basis: Fire Captain, Apparatus Operator and Fire Fighter. The Fire Chief, or his designee, shall initiate personnel assignments and transfers to balance platoon or division strength, fill permanent or temporary vacancies and provide required training to individual personnel. Such assignments will be based on seniority, except where career development, training, special assignments, skills and documented performance issues are specifically identified in writing, management may make assignments based on such issues. For purposes of this article, seniority shall be computed from the date of entry into the current classification. Section 1. Shipouts. When possible, least senior Fire Fighters will be given short term or shipout relief duty. In order to maintain training continuity, shipouts of probationary personnel will be subject to the approval of the Fire Chief or their designee. Section 2. Vacation Relief Positions. In order that platoon strengths can be balanced more quickly and to reduce the need for excess overtime, two positions will be designated for vacation relief. These positions will be the lowest two on the Department seniority list who have completed their probationary period. a. The vacation relief persons will be assigned to one station when not on relief assignment. b. Relief assignment can be made to any Station or shift where a shortage of personnel will cause unnecessary overtime. c. Shortages may be caused by vacation, sick leave, disability or any leave of absence that causes a shift to be short of personnel while another has a surplus. d. Shift transfers will be made so as not to cause the relief person to work more than the prescribed number of hours in the prescribed period. e. Relief assignments will be made and hours will be coordinated by the Battalion Chief's office. Section 3. Transfer Requests. Non-probationary fire personnel may submit transfer requests to their immediate supervisor to be forwarded to the appropriate chief officer. Providing that Departmental needs are satisfied, such transfers will be administered using first a mutually agreeable exchange, secondly seniority. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 24  Packet Pg. 262 of 1138  20 The transfer requests shall remain on file during the year and may be granted when a vacancy occurs, providing the requesting employee possesses the experience and performance ability required to fill the vacancy. Section 4. Special Assignments. Management reserves the right to assign personnel to career development opportunities, special projects, seminars, programs and selected educational and/or training courses, based on Fire Department needs and the performance of the employee. Section 5. Continuous Hourly Service. Continuous hours of service in excess of 96 hours are subject to approval by the Fire Chief or designee. Approval may be granted up to 120 hours when an employee has not been engaged in a greater than usual level of activity or is not fatigued. ARTICLE XIII - TRAINING COORDINATION Section 1.Coordination. Three shift employees per platoon may be assigned to assist the Training Officer in the coordination, preparation and scheduling of the training program. It is agreed that volunteers will first be sought for such assignment, and further agreed that the details of this section shall be established by mutual agreement between the Fire Chief and the Union. ARTICLE XIV - PARAMEDIC ASSIGNMENT Section 1. Limit of Eligibility. The City reserves the right to limit eligibility for the Paramedic Program to the Fire Fighter classification. The City may, at its discretion, add other classifications within the represented bargaining unit to meet the need of program changes. Differentials for other classifications will be as provided in Article VIII, Section 1. Section 2. Additional Candidate Training. As the Program progresses, Management will assess the need for training additional Paramedic candidates. It is Management's intention to provide for such additional training as necessary for Program continuity. Section 3. Incentives. Paramedics will receive a one-time cash payment of $500 for each biennial recertification. This provision applies only to active incumbents of authorized paramedic positions who remain in the paramedic assignment for at least one additional year after recertification. The one year requirement after recertification does not apply to those paramedics who may leave the program because of work- related injury or illness, or promotion, nor does it apply when a paramedic is asked by management to recertify in order to voluntarily extend their paramedic service to meet Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 25  Packet Pg. 263 of 1138  21 special departmental needs for a period of less than one year. Section 4. Proctoring. Paramedic proctoring assignments will be made by the Chief from among qualified volunteers. Payment of $600 will be made to the primary proctoring paramedic at the conclusion of each proctoring assignment. The Chief or his or her designee will maintain a list of qualified proctors from among volunteers. Personnel will be selected by the Fire Chief or his or her designee from the list to serve as paramedic proctors. If a conflict arises between the City and the Union regarding the Proctor Program, either side may suspend the program at the annual renewal period and shall remain suspended until a resolution or agreement is reached. Section 5. Field Training Stipend. Employees assigned to provide field training for new paramedic accreditation will receive a $300 stipend to train a new paramedic or EMT to successful completion of paramedic accreditation. This assignment is at the discretion of the Chief or their designee. ARTICLE XIV - PROMOTION Section 1. Promotion Step Level. All regular promotions from classifications within the representation unit to the classification of Fire Captain will be made at the sixth step on the salary range. Section 2. Promotion Process Information. For promotions to positions within the representation unit, promotion process information will be available in the Human Resources Department office at the time of posting. Information will include applications, minimum qualifications, study material reference information, if appropriate, and information on passing scores. Any changes in an established testing process must be submitted in writing to the Union for review and input no fewer than 60 days prior to the beginning of the process. ARTICLE XVI - REDUCTION IN FORCE Section 1. Order of Reduction. If the work force is reduced (reduction in force) within a represented classification, unit employees having the shortest length of service with the Fire Department will be laid off first so long as employees retained are fully qualified, trained and capable of performing remaining work. ARTICLE XVII - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY Section 1. In Case of Emergency Management may use selective call back with regard to residency in cases of emergency. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 26  Packet Pg. 264 of 1138  22 ARTICLE XVIII - HEALTH BENEFITS Section 1. Maintenance of Levels Except as otherwise set forth herein, the City will maintain the present level of benefits on all City-sponsored medical programs. Section 2. Vision Care a) Level of Benefits: The City offers vision care coverage for employees and dependents.The City provides a base vision plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a vision “buy-up” plan. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XX Section 3(b). a)b) Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees will be responsible for premium payments required to enroll in the “buy up” vision plan. Section 3. PEMHCA Health Plan. a. ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Effective July 1, 2025, the City will increase its maximum contribution to the following: (inclusive of PEMHCA contribution*) effective July 1, 2025 Employee plus one $1,885.00 Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the following percentages: • Employee only: 2% • Employee plus one: 3% • Employee family: 5% Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 27  Packet Pg. 265 of 1138  23 (inclusive of PEMHCA contribution*) effective January 1, 2027 Employee plus one $1,942.00 Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by four percent (4%). Medical Category Premium Total Maximum City Contribution (inclusive of PEMHCA contribution*) effective January 1, 2028 Employee plus one $2,020.00 The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. * Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the Total Maximum City Contribution described above. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. b. Flexible Compensation: Effective the first pay period including Council adoption of the MOUJanuary 28, Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 28  Packet Pg. 266 of 1138  24 2023, in lieu of additional increases to the City’s medical premiums, hourly wages for all bargaining unit classifications will werebe increased by $100 per month ($1200 per year). Employees can utilize this cash payment for any purpose, including to cover health insurance premiums or contribute to flexible spending accounts/457 deferred compensation plans. Effective the first full pay period of January 2024, hourly wages for all bargaining unit classifications will were be increased by an additional $100 per month. c. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. d. Alternate Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any non-City of Palo Alto sponsored or association medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical insurance coverage and receive cash payments in the amount of two hundred and eighty four dollars ($284) for each month City coverage is waived. Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or domestic partner and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 29  Packet Pg. 267 of 1138  25 Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the employee’s failure to notify the City of a change in status. e. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. ARTICLE XVIIIIX - DENTAL BENEFITS Section 1. Level of Benefits. The City will maintain the present level of benefits on the City- sponsored dental program. The City provides a base dental plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a dental “buy-up” plan. Maximum benefits per calendar year shall be $2,000. Section 2. Premiums. The City shall pay all premium payments or equivalent self- insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the existing base dental plan. Dependents will include domestic partners, as defined under Article XX, Section 3(b). Employees will be responsible for premium payments required to enroll in the “buy up” dental plan. Section 3. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. ARTICLE XIX - LIFE INSURANCE Section 1. Premiums. The City currently pays the following amounts of premium on behalf of Fire personnel: Per Pay Period Per Month (Approx.) Basic Life Insurance and Basic ADD $.085 $ .185 (per $1,000 of coverage) Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 30  Packet Pg. 268 of 1138  26 The City will provide employees with Basic and Supplemental life insurance plans. The basic life insurance provided by the City shall equalThe City shall pay the premium for basic life insurance coverage equal to one times the employee’s base monthly salary multiplied by twelve.annual salary. Employees will have the option of enrolling in supplemental life insurance by paying the premiums required to enroll in the plan. ARTICLE XXI - RETIREMENT BENEFITS Section 1. PERS Retirement Formula. Safety Pension Group A: 3%@50 Safety Retirement The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). Safety Pension Group B: 3%@55 Safety Retirement Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (often referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). Safety Pension Group C: 2.7% at Age 57 Safety Retirement Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. Miscellaneous Pension Formulas: a. Miscellaneous Pension Group A: 2.7% at 55. The City provides retirement benefits under the California Public Employees Retirement System at the level of 2.7% at age 55 for employees hired before July 17, 2010, with a one year final compensation period. b. Miscellaneous Pension Group B: 2% at 60:For miscellaneous employees hired Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 31  Packet Pg. 269 of 1138  27 on or after July 17, 2010, and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Classic” CalPERS members)the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60), with a one (1) year final compensation period. a.c. Miscellaneous Pension Group C: 2% at 62. Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two percent at age 62 (2%@62) retirement formula with a three (3) year final compensation period. Section 2. PERS Member Contribution. a. Employees in all represented classes in Pension Groups A and B described above will make the 9% PERS member contributions by payroll deduction. b. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. c. When employees pay their PERS Member Contribution pursuant to section 3a and 3b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). Section 3. Additional Employee PERS contributions In addition to the PERS member contribution as required under section 2. a, b and c above, all employees in pension groups a, b and c shall contribute the additional following contributions: a. In addition to the Member Contribution required per CalPERS 20516 contract amendment all employees regardless of pension formula in this unit shall pay 3% towards the Employer share of Pension. b. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the employer share of Pension for a total of 4%. Section 4. Option 2 Death Benefit. The City provides the Pre-Retirement Option Settlement 2 Death Benefit. The Pre-Retirement Optional Settlement 2 Death Benefit provides the spouse of a deceased member, who was eligible to retire for service at the time of death, with an alternate option to the lump sum Basic Death Benefit whereby the Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 32  Packet Pg. 270 of 1138  28 surviving spouse can elect a monthly allowance equal to the amount the member would receive if he/she had retired from service on the date of death and elected Optional Settlement 2 (the highest monthly allowance a member can leave a spouse). Section 5. Military Service Credit. The City will provide the Public Employees’ Retirement System benefit known as “Section 20930.3, Military Service Credit as Public Service.” Section 6. 1959 Survivor Benefit. The City will continue to provide the basic level of 1959 PERS Survivor Benefit to eligible employees in accordance with Government Code section 21571. Section 7. Employer Contributions to 457 Plan Effective the first full pay period following July 1, 2020, the City will contribute the equivalent of 1% of the employee’s pensionable salary into the 457 plan. Eligibility: a. Employees must be enrolled in an eligible City sponsored 457 plan b. Employees who reach the maximum as defined by the IRS will not receive additional contributions c. Employee must be making PERS contributions ARTICLE XXII - RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to IAFF employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this AgreementStarting June 1, 2016 through August 31, 2016, the City shall provided active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the People, Strategy, and Operations department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 33  Packet Pg. 271 of 1138  29 Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XXIIV - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) Section 1. DCAP. The City will provide a dependent care assistance program for employees subject to the provisions of applicable law. The program will remain in effect subject to a reasonable minimum participation level and availability of third party administrative services at a reasonable cost. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. Section 2. HCFSA. The City will provide healthcare flexible spending program for employees subject to the provision of applicable law. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. The HCFSA program will be available to employees effective January l, 2026, and remain in effect subject to a reasonable minimum participation level and availability of third-party administrative services at a reasonable cost. ARTICLE XXIIIV - VACATION ACCRUAL Section 1. Accrual Rate. All eligible fire suppression persons shall accrue vacation at the following rate for continuous service performed in a pay status. Non-shift representation unit employees shall accrue the 40-hour equivalent--one shift equals sixteen hours. a. For employees completing less than four years continuous service, the accrual rate shall be five duty shifts per year. b. For employees completing four but not more than nine years continuous service, the accrual rate shall be eight duty shifts per year. c. For employees completing nine but not more than 14 years continuous service, the accrual rate shall be 10 duty shifts per year. d. For employees completing 14 but less than 19 years continuous service, the accrual rate shall be 11 duty shifts per year. e. For employees completing 19 or more years continuous service, the accrual rate shall be 12 duty shifts per year. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 34  Packet Pg. 272 of 1138  30 At the time of initial appointment to the City, the City may credit an employee for prior years of public service in a city, county, special district, state or federal government agency, up to a maximum of four (4) years of service. The City Manager or designee shall identify the number of years for which the employee will receive credit (up to the four (4) year maximum). Section 2. Unused At Termination. Represented employees who fail to use all vacation as accrued may continue the accrual balance and be entitled to all accrued but unused vacation upon termination, except as limited below. Section 3. Limits. Vacation accrual balances shall be limited to three times the annual accrual rate. Accrual credit beyond this limit shall not be recognized or compensated, except that for employees of record as of January 1, 1984 who have vacation excess on a one-time basis shall be set aside (banked) to be subsequently used as vacation or paid at termination. No additions may be made to the bank. The bank is established only to facilitate changeover from unlimited to three times annual accrual rate limitation on vacation accrual as herein provided. ARTICLE XXIV - USE OF VACATION Section 1. Maximum Number of Slots. The maximum number of vacation scheduling slots for representation unit suppression employees is four (4) per platoon on a year- round basis. During the term of the contract, parties agree to meet to discuss the impact of the number of vacation slots per day on daily staffing. Section 2. Approvals. Vacation scheduling must be approved by the Battalion Chief or Fire Chief. The minimum is twelve (12) hours or more for suppression employees. Advance vacation schedules for suppression shall begin either at 8:00 a.m. or 8:00 p.m. Section 3. Vacation Pay. Vacation pay shall be made available in advance of regular pay day provided that employee requests such advance in writing to the Finance Department at least two weeks prior to his/her vacation date. The employee's supervisor must verify vacation date on the request. Section 4. Illness on Vacation. When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. Section 5. When to be Taken. The time at which an employee may use accrued vacation leave and the amount to be taken at any one time shall be determined by the Chief with particular regard for the needs of the City, but insofar as possible, considering Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 35  Packet Pg. 273 of 1138  31 the wishes of the employee. Section 6. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 7. Waiting Period. Employees shall complete six months continuous service before using accrued vacation leave. Section 8. Double Compensation Prohibited. Employees shall not work for the City during their vacation. Section 9. Cash out Option. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours to a maximum of one hundred twenty (120) hours; PROVIDED, that the employee has taken eighty (80) hours of vacation off with pay in the previous twelve (12) months. ARTICLE XXVI - SICK LEAVE Section 1. Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Section 9. Up to six (6) days (72 shift hours for suppression personnel) Ssick leave per year may be used for illness in the immediate family (wife, husband, child, parent, parent- in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee.) Section 2. Eligibility. Regular employees shall be eligible to accrue and use sick leave. Section 3. Accrual. Sick leave shall be accrued bi-weekly, provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of six shifts per year. Section 4. Accumulation. Accumulated sick leave may be accrued without limit, except as provided in Section 8 below. Section 5. Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight (48) hours or shift equivalent of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her option, choose either to receive the long- Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 36  Packet Pg. 274 of 1138  32 term disability benefits or to utilize the remainder of his/her accrued sick leave prior to applying for long-term disability benefits. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. When an employee finds it necessary to be absent for any reason, he/she should cause the facts to be reported to the department within 60 minutes prior to his/her regular starting time on the first working day of absence, and shall regularly report on, or account in advance for each work day thereafter unless hospitalized or otherwise indisposed. Such reports may be subject to written documentation. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Section 6. Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. Section 7. Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and Section 8. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. Section 8. Payment for Accumulated Sick Leave. Eligible employees (those hired before December 31, 1983) who leave the municipal service in good standing, or who die while employed in good standing by the City, and who have fifteen or more years of continuous service, shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their basic hourly rate of pay at termination. Full sick leave accrual will be paid in the event of termination due to disability. For new employees hired after December 31, 1983, sick leave accrual accumulation will be limited to 1,000 hours with no payoff provisions for unused balance at termination for any reason. Section 9. Personal Business Leave Chargeable to Sick Leave. It is agreed between the parties that all shift personnel represented by the Union shall have the right to charge up to forty-eight (48) hours personal business leave per year to sick leave, and that all non-shift personnel shall have the right to charge up to twenty (20) hours personal Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 37  Packet Pg. 275 of 1138  33 business leave per year to sick leave. Such personal business leave shall be allowed only on a staffing available basis and where the provisions of the minimum staffing agreement are not affected. "Staffing available" means at or above minimum staffing levels as defined in Article XII. Section 10. Return to Work or Continue Work With Limited Duty. In cases of non- work-related injury, illness or pregnancy an employee, upon approval of the Fire Chief and the City Safety Officer, may return to work or continue work with doctor-approved limited duty. Approval for such limited duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. Shift employees must be willing to accept any non-shift limited duty schedule work location and may be subject to the reasonable availability of limited duty assignments. The City doctor may be consulted in determining work limitations. ARTICLE XXVII - SUBPOENAS Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. ARTICLE XXVIII - WORKERS' COMPENSATION Section 1. Status Reporting While on Disability. Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status of medical treatment therapy and physical condition. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXVIIIX - PHYSICAL FITNESS MEDICAL EXAMINATIONS Physical fitness medical examinations for all represented employees may include chest x-rays every three years unless otherwise directed by a physician, eye examination and hearing examination. ARTICLE XXIX- LEAVES OF ABSENCE WITHOUT PAY Section 1. Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physician's verification including diagnosis and medical work restriction. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 38  Packet Pg. 276 of 1138  34 Section 2. Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. Section 9. Use of paid accruals while on leave. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued vacation paid leave credits in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. ARTICLE XXXI - LEAVES OF ABSENCE WITH PAY Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 39  Packet Pg. 277 of 1138  35 considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother-in-law, father-in-law, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. ARTICLE XXXII – VOLUNTEER LEAVE PROGRAM The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide members of Local 1319 International Association of Fire Fighters (IAFF) employees the opportunity to donate their accrued vacation time to assist fellow members of IAFF either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: 1. Voluntary Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 40  Packet Pg. 278 of 1138  36 2. Irrevocable 3. Confidential, unless disclosure is required by law 4. In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). 5. The employee shall be required to exhaust all other types of leave to request donated leave 6. It is understood that employees seeking or receiving leave under this program will apply for long-term disability benefits for which they may be eligible 7. Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverages through the City 8. If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full- time care by the employee. Certification of this requirement by a health care professional is required 9. The maximum donated time a donee may receive is 12 months (if available). 10. Applications to donate leave or receive leave under this Program are made to the Human Resources Department 11. This is a pilot program and is subject to cancellation by either party IAFF members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). The City reserves the right to modify or terminate this program at any time. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non- occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 41  Packet Pg. 279 of 1138  37 ARTICLE XXXIII- TUITION REIMBURSEMENT Section 1. Options. Effective July 1, 2004 the tuition reimbursement program was amended to provide each employee the option of receiving the $1,000 as taxable cash or as a contribution to deferred compensation. The tuition reimbursement program will be eliminated effective July 1, 2012 with no further payouts starting in FY 12-13 and on-going. ARTICLE XXXIIIV - PER DIEM TRAVEL EXPENSES Section 1. City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. ARTICLE XXXIV - HOUSE FUND ITEMS Section 1. Station House Fund. The station house fund per year, per shift employee shall be $100.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with non-food house fund items: TV purchase and repair. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the station house fund. The Fire Fighters agree to maintain the voter registration program. ARTICLE XXXVI - PARKING Section 1. Entitlements. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994, may initially receive a parking permit for another downtown lot, subject to availability of space at the Civic Center Garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXXVII- GRIEVANCES The City and the Union agree to establish a grievance procedure as follows: 1. Definition: A grievance is any complaint or dispute regarding the application of interpretation of this Memorandum of Understanding, Department rules, Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 42  Packet Pg. 280 of 1138  38 regulations, policies or procedures relating to wages, hours or other terms and conditions of employment. 2. Any non-probationary employee represented by the Union may file and process a grievance. Such aggrieved employees may be represented by the Union or may represent themselves in preparing and presenting their grievance at any level of review. The Union may file a grievance when a Union right not directly related to an individual employee becomes subject to dispute. 3. Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance was filed in writing. 4. Written grievances shall be submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The Union shall deliver a copy of a written grievance to the Human Resources Department Director on the same date that it is first filed with another City representative under the provisions of the below grievance procedure. 5. The time limits specified in this section may be extended by mutual agreement in writing of the aggrieved employee or Union and the reviewer concerned. Should a decision not be rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. The grievance will be considered settled if the decision of any step is not appealed within the specified time limit. 6. If a grievance is related to a promotional process to positions within the representation unit, Step I shall be directed to the Deputy Fire Chief (or Fire Marshal for FPB positions). 7. Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with the immediate supervisor by the end of the tenth business day following the discovery of the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. Step II. If the grievance is not resolved through informal discussion, it may be submitted in writing to the Battalion Chief (Deputy Fire Chief for Captain grievances) within ten business days of the informal discussion. The Battalion Chief/Assistant Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step III. If the grievance is not resolved in Step II, it may be submitted in writing to the Fire Chief within ten business days of receipt of the Battalion Chief's/ Deputy Fire Chief's written response. The Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 43  Packet Pg. 281 of 1138  39 Step IV. If the grievance is not resolved in Step III, the aggrieved employee may submit the grievance to the City Manager for final determination or to binding grievance arbitration. All Step IV appeals must be filed in writing at the Human Resources Department Office within ten business days of receipt of the Fire Chief's response under Step III. All hearings before the City Manager shall be pursuant to the rules and regulations set forth in the City of Palo Alto Merit Rules and Regulations. Hearings before an arbitrator will be as set forth below. In the event the aggrieved employee decides to proceed to arbitration, he/she shall select jointly with the Director of Human Resources an arbitrator. If the parties are unable to agree on an arbitrator, they shall jointly request a panel of five qualified and experienced arbitrators from the State Conciliation Service. Upon receipt of the list of arbitrators, the names shall be alternately struck until one name remains who shall serve as arbitrator. The arbitrator shall be jointly contacted by the parties. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of the Memorandum of Agreement and such Merit System rules, regulations, policies, procedures, City ordinances or regulations relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances appealed to the arbitrator. The arbitrator shall be without power to make any decision: a. Regarding matters of interest. b. Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. c. Granting any wage increases or decreases. d. Granting pay or benefits for any period of time prior to the execution date of this Memorandum of Agreement. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of the Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in this Memorandum of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Copies of the arbitrator's decision shall be submitted to the City and the aggrieved employee. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. It is further agreed that the provisions of this section shall be incorporated as part of Chapter 11 of the City of Palo Alto Merit System Rules and Regulations. Existing procedures set forth in Chapter 11, to the extent they are inconsistent with the provisions contained herein, are superseded. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 44  Packet Pg. 282 of 1138  40 ARTICLE XXXVIII- SAFETY COMMITTEE Section 1. Committee A Safety Committee comprised of four representation unit members appointed by the Union, and at least two members of Management, will continue to meet. The Committee may make safety recommendations to the Fire Chief regarding equipment, vehicles and apparatus and may review all accidents involving represented personnel. Management shall inform the Safety Committee of all accidents involving injuries to represented personnel. ARTICLE XXXVIIIX – MISCELLANEOUS Section 1. Section 1. Uniforms. The value of the purchase, rental and/or maintenance of the required uniforms shall be reported as special compensation to the extent legally permissible, pursuant to Title 2 CCR, Section 571(a)(5) as Uniform Allowance. Based upon existing uniform standards and the City’s cost experience, the value of this benefit shall be reported as $15.31 per pay period. The City will supply complete uniforms as described in Fire Department Policy 1031. The City will issue four T-shirts to each uniformed employee each July These T-shirts are for use on duty only and will be maintained by the employee. Section 2. Removal of Disciplinary Actions. Records of disciplinary actions shall be removed from the personnel file of a representation unit employee upon written request by the employee after a period of three years, or sooner if mutually agreed by the Fire Chief and the employee. If the disciplinary action involved violations of the City’s anti- harassment policy, state/federal harassment or discrimination laws, or if there have been subsequent violations of the same policy during the three-year period, the Fire Chief may deny the request for removal. In such cases, the employee may request a review meeting with the Fire Chief or designee, Union President or designee, and Human Resources. The final decision following this review meeting is final and not subject to any grievance or appeal rights. ARTICLE XXXIXL - FULL UNDERSTANDING Section 1. Full and Entire Understanding. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 45  Packet Pg. 283 of 1138  41 Section 2. Fair Labor Standards Act. Compensatory time off with Management approval may be used as an alternative to overtime compensation only within the 27- day work period within which the overtime is worked. Section 3. Severability. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation or by reason of State or U.S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 4. Good Faith. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Understanding be administered and observed in good faith. Section 5. Merit System Rules and Regulations. During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. Section 6. Station Consolidation or Relocation . During the term of this agreement, at management request, the parties agree to meet and confer with regard to issues pertaining to fire station consolidation or relocation. Section 7. Meet and Confer. Nothing in this agreement shall preclude the parties from mutually agreeing to meet and confer on any subject within the scope of representation during the term of this agreement. ARTICLE XLI – 48/96 Work Schedule The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire Department policy 205.6 typical workday and 1009.8.1 Reporting for Duty- Holidays. ARTICLE XLII – FUTURE SERVICE DELIVERY MODELS Effective upon request of the City, the parties will meet and confer in good faith regarding the service delivery model of current inspection services and transport during the term of this Agreement. ARTICLE XLIII - DURATION This Memorandum of Agreement shall become effective upon ratification by both Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 46  Packet Pg. 284 of 1138  42 parties hereto and remain in effect through June 30, 20285. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 47  Packet Pg. 285 of 1138  38 EXECUTED: FOR: FOR: INTERNATIONAL ASSOCIATION CITY OF PALO ALTO FIRE FIGHTERS __ __ _____ __ __ ___ __________ __________ Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 48  Packet Pg. 286 of 1138  39 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 49  Packet Pg. 287 of 1138  1 MEMORANDUM OF AGREEMENT Between CITY OF PALO ALTO and I.A.F.F. LOCAL 1319 July 1, 2025 – June 30, 2028 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 50  Packet Pg. 288 of 1138  2 PREAMBLE __________________________________________________________ 7 ARTICLE I - RECOGNITION _____________________________________________ 7 Section 1. Recognition. ______________________________________________________ 7 ARTICLE II - NO DISCRIMINATION _______________________________________ 7 Section 1. No Discrimination. __________________________________________________ 7 Section 2. Free Choice. ______________________________________________________ 7 Section 3. Human Relations Committee. _________________________________________ 7 ARTICLE III - PAYROLL DEDUCTIONS ____________________________________ 7 Section 1. Payroll Deductions and Written Authorization. ____________________________ 8 Section 2. Certification of Union Membership _____________________________________ 8 Section 3. Indemnification ____________________________________________________ 8 ARTICLE IV - UNION ACTIVITIES ________________________________________ 8 Section 1. On-Duty Time. _____________________________________________________ 8 Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. ______________________________ 8 Section 3. Use of Meeting Places. ______________________________________________ 9 ARTICLE V - NO STRIKES ______________________________________________ 9 Section 1. No Strikes. ________________________________________________________ 9 ARTICLE VI - PROBATIONARY PERIOD __________________________________ 9 Section 2. Part of Testing Process. _____________________________________________ 9 Section 3. Suspension or Termination. __________________________________________ 9 ARTICLE VII - SALARY PROVISIONS ____________________________________ 10 Section 1. Base Wage Rates. ________________________________________________ 10 Section 2. Out-of-Class Compensation. _________________________________________ 11 Section 3. Salary Steps _____________________________________________________ 11 Section 4. Pay for Court Appearance. __________________________________________ 12 Section 4. Classifications ____________________________________________________ 12 ARTICLE VIII - PAY DIFFERENTIALS ____________________________________ 12 f. Paramedic Differential. _________________________________________________ 13 Section 2. Emergency Medical Technician Certification. _________________________ 14 Section 3. Bilingual Pay _____________________________________________________ 14 Section 4. Special Operations Assignment (Haz Mat) _____________________________ 14 Section 5. Fire Investigator Differential. ________________________________________ 14 Section 6. Education Incentive _____________________________________________ 15 ARTICLE IX - HOLIDAYS ______________________________________________ 16 Section 1. Named Holidays. __________________________________________________ 16 Section 2. Conditions. ______________________________________________________ 16 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 51  Packet Pg. 289 of 1138  3 ARTICLE X - OVERTIME COMPENSATION _______________________________ 17 Section 1. Compensation. ___________________________________________________ 17 ARTICLE XI - APPARATUS STAFFING ___________________________________ 17 ARTICLE XII - WORK ASSIGNMENTS AND TRANSFERS ____________________ 18 Section 1. Shipouts. _______________________________________________________ 18 Section 2. Vacation Relief Positions. ___________________________________________ 18 Section 3. Transfer Requests. ________________________________________________ 19 Section 4. Special Assignments. ______________________________________________ 19 Section 5. Continuous Hourly Service. __________________________________________ 19 ARTICLE XIII - TRAINING COORDINATION _______________________________ 19 Section 1.Coordination ______________________________________________________ 19 ARTICLE XIV - PROMOTION ___________________________________________ 19 Section 1. Promotion Step Level. ______________________________________________ 19 Section 2. Promotion Process Information. ______________________________________ 19 ARTICLE XV - REDUCTION IN FORCE ___________________________________ 20 Section 1. Order of Reduction. ________________________________________________ 20 ARTICLE XVI - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY ______ 20 Section 1. In Case of Emergency ______________________________________________ 20 ARTICLE XVII - HEALTH BENEFITS _____________________________________ 20 Section 1. Maintenance of Levels _____________________________________________ 20 Section 2. Vision Care ______________________________________________________ 20 Section 3. PEMHCA Health Plan. _____________________________________________ 20 ARTICLE XVIII - DENTAL BENEFITS _____________________________________ 23 Section 1. Level of Benefits. __________________________________________________ 23 Section 2. Premiums. _______________________________________________________ 23 ARTICLE XIX - LIFE INSURANCE _______________________________________ 24 ARTICLE XX - RETIREMENT BENEFITS __________________________________ 24 Section 1. PERS Retirement Formula. __________________________________________ 24 Section 2. PERS Member Contribution. ________________________________________ 25 Section 3. Additional Employee PERS contributions _______________________________ 25 Section 4. Option 2 Death Benefit. _____________________________________________ 26 Section 5. Military Service Credit. _____________________________________________ 26 Section 6. 1959 Survivor Benefit. _____________________________________________ 26 Section 7. Employer Contributions to 457 Plan ___________________________________ 26 ARTICLE XXI - RETIREMENT MEDICAL PLAN_____________________________ 26 Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: ____ 26 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 52  Packet Pg. 290 of 1138  4 Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: ____________________________________________________ 26 ARTICLE XXII - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) ________ 27 Section 1. DCAP. __________________________________________________________ 27 ARTICLE XXIII - VACATION ACCRUAL __________________________________ 27 Section 1. Accrual Rate. _____________________________________________________ 27 Section 2. Unused At Termination. _____________________________________________ 28 Section 3. Limits. __________________________________________________________ 28 ARTICLE XXIV - USE OF VACATION ____________________________________ 28 Section 1. Maximum Number of Slots __________________________________________ 28 Section 2. Approvals. _______________________________________________________ 28 Section 3. Vacation Pay. ____________________________________________________ 28 Section 4. Illness on Vacation. ________________________________________________ 28 Section 5. When to be Taken. ________________________________________________ 28 Section 6. Limitation on Use. _________________________________________________ 29 Section 7. Waiting Period. ___________________________________________________ 29 Section 8. Double Compensation Prohibited. _____________________________________ 29 Section 9. Cash out Option. __________________________________________________ 29 ARTICLE XXV - SICK LEAVE ___________________________________________ 29 Section 1. Statement of Policy. _______________________________________________ 29 Section 2. Eligibility ________________________________________________________ 29 Section 3. Accrual. _________________________________________________________ 29 Section 4. Accumulation. ____________________________________________________ 29 Section 5. Use. ____________________________________________________________ 29 Section 6. Depletion of Sick Leave Benefits. _____________________________________ 30 Section 7. Forfeiture Upon Termination. ________________________________________ 30 Section 8. Payment for Accumulated Sick Leave. _________________________________ 30 Section 9. Personal Business Leave Chargeable to Sick Leave. ______________________ 30 Section 10. Return to Work or Continue Work With Limited Duty. _____________________ 31 ARTICLE XXVI - SUBPOENAS __________________________________________ 31 ARTICLE XXVII - WORKERS' COMPENSATION ____________________________ 31 Section 1. Status Reporting While on Disability. __________________________________ 31 ARTICLE XXVIII - PHYSICAL FITNESS MEDICAL EXAMINATIONS ____________ 31 ARTICLE XXIX- LEAVES OF ABSENCE WITHOUT PAY _____________________ 31 Section 1. Disability. ________________________________________________________ 31 Section 2. Other Leaves. ____________________________________________________ 32 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 53  Packet Pg. 291 of 1138  5 Section 3. Accrued Vacation Credits. ___________________________________________ 32 Section 4. Approval of Department Head ________________________________________ 32 Section 5. Approval by City Manager. __________________________________________ 32 Section 6. Absence Without Leave. ____________________________________________ 32 Section 7. Leave of Absence; Death Outside the Immediate Family. __________________ 32 Section 8. Military Leave of Absence ___________________________________________ 32 Section 9. Use of paid accruals while on leave. ___________________________________ 32 ARTICLE XXX - LEAVES OF ABSENCE WITH PAY _________________________ 32 Section 1. City Manager Granted Leaves. _______________________________________ 32 Section 2. Council Granted Leave. _____________________________________________ 32 Section 3. Employee's Time Off to Vote. ________________________________________ 33 Section 4. Leaves of Absence; Death in Immediate Family. _________________________ 33 Section 5. Jury Duty; Leave of Absence. ________________________________________ 33 ARTICLE XXXI – VOLUNTEER LEAVE PROGRAM _________________________ 33 ARTICLE XXXII- TUITION REIMBURSEMENT _____________________________ 34 Section 1. Options. _________________________________________________________ 35 ARTICLE XXXIII - PER DIEM TRAVEL EXPENSES__________________________ 35 Section 1. City Business. ____________________________________________________ 35 ARTICLE XXXIV - HOUSE FUND ITEMS __________________________________ 35 Section 1. Station House Fund. _______________________________________________ 35 Section 2. Non-Food House Items _____________________________________________ 35 ARTICLE XXXV- PARKING ____________________________________________ 35 Section 1. Entitlements. _____________________________________________________ 35 ARTICLE XXXVI- GRIEVANCES ________________________________________ 35 Step II ___________________________________________________________________ 36 Step III __________________________________________________________________ 36 Step IV __________________________________________________________________ 36 ARTICLE XXXVII- SAFETY COMMITTEE _________________________________ 38 Section 1. Committee _______________________________________________________ 38 ARTICLE XXXVIII – MISCELLANEOUS ___________________________________ 38 Section 1. Section 1. Uniforms. _______________________________________________ 38 Section 2. Removal of Disciplinary Actions. ______________________________________ 38 ARTICLE XXXIX - FULL UNDERSTANDING _______________________________ 38 Section 1. Full and Entire Understanding ________________________________________ 38 Section 2. Fair Labor Standards Act. ___________________________________________ 39 Section 3. Severability. ______________________________________________________ 39 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 54  Packet Pg. 292 of 1138  6 Section 4. Good Faith. ______________________________________________________ 39 Section 5. Merit System Rules and Regulations. __________________________________ 39 Section 6. Station Consolidation or Relocation ___________________________________ 39 Section 7. Meet and Confer. __________________________________________________ 39 ARTICLE XL – 48/96 Work Schedule ____________________________________ 39 ARTICLE XLI – FUTURE SERVICE DELIVERY MODELS _____________________ 39 ARTICLE XLII - DURATION ____________________________________________ 39 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 55  Packet Pg. 293 of 1138  7 MEMORANDUM OF AGREEMENT CITY OF PAL0 ALTO and I.A.F.F. LOCAL 1319 January 30, 2023 - June 30, 2025 PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and Local 1319, International Association of Fire Fighters, hereinafter referred as the "Union", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. Recognition. The City recognizes the Union as the exclusive representative of an employee group consisting solely of the classifications of Fire Apparatus Operator, Fire Fighter, Fire Captain, Fire Captain (forty-hour assignment), Fire Inspector Sworn and Non-Sworn, , and Hazmat Inspector, who are regularly employed by the City and others as amended into the representation unit from time to time under existing law and the Merit System Rules and Regulations. ARTICLE II - NO DISCRIMINATION Section 1. No Discrimination. The Union and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Union, or participation in the lawful activities of the Union. Section 2. Free Choice. The Union and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Union and to abide by the express provisions of applicable State and local laws. Section 3. Human Relations Committee. A Human Relations Committee will include up to five members appointed by the Union executive board and at least two members of management with representation from the Fire and Human Resources Departments. The committee may make recommendations to management regarding recruitment outreach, equal employment opportunity and career development programs. ARTICLE III - PAYROLL DEDUCTIONS Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 56  Packet Pg. 294 of 1138  8 Section 1. Payroll Deductions and Written Authorization. The City shall deduct Union membership dues assessments and insurances authorized by the Union. This will be accomplished by payroll deduction from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on a Union authorization card. The Union will be the custodian of records for individual employee membership and dues deduction forms. The Union will maintain authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to be made. The City will direct employee requests to cancel or change deductions to the Union. The City shall remit the deducted dues to the Union as soon as possible after deduction. Section 2. Certification of Union Membership. The Union agrees to provide the City an initial certified list of members and statement that the Union has and will maintain written authorizations signed by the individuals from whose wages the Union dues deductions are to be made. From that point forward the Union will update the list whenever there are changes. Section 3. Indemnification. The Union shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article. The Union shall comply with all statutory and legal requirements with respect to this article. ARTICLE IV - UNION ACTIVITIES Section 1. On-Duty Time. Local 1319 officers may use a reasonable amount of on- duty time to attend to Union business specifically related to representation of employees so long as: a. Staffing is available b. Operations are not interrupted c. Advance approval is obtained from the Battalion Chief or Operations Chief Section 2. Interoffice Mail, Bulletin Boards, and E-Mail. The Union shall have access to interoffice mail and existing bulletin boards in unit employee work areas for the purpose of posting, transmitting, or distributing notice or announcements including notices of social events, recreational events, Union membership meetings, result of elections and reports of minutes of Union meetings. Any other material must have prior approval of the Operations Chief or Fire Chief. Action on approval will be taken within 24 hours of submission. The Union may send e-mail messages only for the purposes set forth above. The I.T. Division will maintain the IAFF list. The Union access to e-mail is based on the following conditions: a. E-Mails to the IAFF list will be copied to the Fire Chief or Operations Chief at distribution. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 57  Packet Pg. 295 of 1138  9 b. E-Mails to the IAFF list will only be sent by the Executive Board Members. Section 3. Use of Meeting Places. The Union shall have the right to reserve City meeting and conference rooms for use during non-working hours or as subject to Battalion Chief approval. Such meeting places will be made available in conformity with City regulations and subject to the limitations of prior commitment. ARTICLE V - NO STRIKES Section 1. No Strikes. The Union, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Union, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE VI - PROBATIONARY PERIOD Section 1. Tentative and Subject to Probationary Period. All original appointments to regular or part-time municipal service positions shall be tentative and subject to a probationary period. With the exception of the Fire Inspector (Non-Sworn) classification, this probationary period shall include the fire training academies and an additional fourteen (14) to sixteen (16) months after completion of the academies (including in- house academy), excluding time off for extended leaves of absence. The probationary period will end at the sooner of 16 months or the completion of all probationary testing, inclusive of driver II certification. All original appointments to Fire Inspector (Sworn or Non-Sworn) classifications shall serve a twelve (12) month probationary period, commencing with the first day of employment in the classification. Promotion from a non-sworn to a sworn position will be subject to the applicable Probationary Period. Section 2. Part of Testing Process. The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing all aspects of the employee's qualifications, for ensuring the effective adjustment of a new employee to the position and for rejecting any probationary employee who, in the opinion of management, is not suitable to attain permanent status. Section 3. Suspension or Termination. During the probationary period a new employee may be suspended or terminated at any time by the appointing authority without cause and without right of appeal or to submit a grievance. Said employee shall not have the right to proceed to arbitration on the issue of arbitrability or on the issue of its constitutional or discovery rights, nor those of any employee by reason of the Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 58  Packet Pg. 296 of 1138  10 foregoing. The Union shall not be a party to any lawsuit relating to the termination of a probationary employee. ARTICLE VII - SALARY PROVISIONS Section 1. Base Wage Rates. a. The base wage rates of bargaining unit classifications will be as set forth in Appendix A of this MOA. b. General Salary Increase Effective the first full pay period following July 1, 2025, the salary ranges of all represented classifications will be increased by three percent (3%). Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by three half percent (3%) Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by three percent (3%). c. Market Increase: Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by three-fourths of one percent (0.75%). Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by three-fourths of one percent (0.75%). Total Compensation and Survey Database Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 59  Packet Pg. 297 of 1138  11 paid by other employers. Section 2. Out-of-Class Compensation. All represented employees who are assigned work in a higher classification for longer than four (4) continuous hours will be compensated at a higher pay rate for all hours worked during the out-of-class assignment. This provision applies as follows: Fire Fighter, Apparatus Operator, Captain or Inspector working in a higher classification: Step to step. Representation unit classification working as a Battalion Chief, 10% above 6th-Step Captain, but not to exceed of the salary range of the Battalion Chief. Representation unit classification working in any other management position, within the range of the management position. In accordance with Government Code 20480, an employee assigned to work in an “out- of-class appointment” may not exceed 960 hours worked in the appointment within a fiscal year if the employee is appointed to an upgraded position or higher classification that is vacant during recruitment for a permanent appointment. This limitation does not apply to a position that is temporarily available due to a leave of absence. Section 3. Salary Steps Employees in the Firefighter Rank initially appointed to the first step of the salary range of their classification shall be entitled to a merit increase to step two in the pay range upon successful completion of six (6) months of service, so long as they receive a satisfactory performance evaluation. The date of such increase shall be the first full pay period following the evaluation date. Employees may be appointed to any step in the salary schedule for their classification as recommended by the Fire Chief and approved by the City Manager. Employees appointed to the second step and above are eligible to receive a merit increase the first full pay period following successful completion of twelve (12) months of actual service, so long as they receive a satisfactory performance evaluation. Employees in the Fire Inspector (Non-Sworn) classification shall be entitled to a step increase in the pay range upon successful completion of twelve (12) months of service, so long as they receive a satisfactory performance evaluation. The date of such increase shall be the first full pay period following the evaluation date. Each twelve (12) months of actual service after the evaluation date, each employee receiving a satisfactory performance evaluation shall receive a step increase to the next higher step (effective the first full pay period following the evaluation date) until the top step of the pay range for the job class has been reached. An employee shall not receive a merit increase beyond the maximum steps established for the job classification. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 60  Packet Pg. 298 of 1138  12 Section 4. Pay for Court Appearance. Sworn Fire personnel appearing in court for the People shall be compensated as follows: Period Rate Minimum a. Appearance on scheduled day off -half at -hour rate 4 hours b. Any or all court time during scheduled shift -hour rate None scheduled shift not run into shift time) The employee shall remit all fees received for such appearances to the City within thirty days from the termination of his/her services. Compensation for mileage or subsistence allowance shall not be considered as a fee and shall be retained by the employee. Section 4. Classifications. The sworn Haz Mat Inspector and sworn Fire Inspector classification will be paid at the same level as the Fourt-hour Fire Captain. One Fire Captain position will be assigned to a Fire Captain (Forty-hour Assignment) with the pay set at 5% above the Fire Captain. ARTICLE VIII - PAY DIFFERENTIALS Sworn Unit employees are eligible for the following pay differentials. Notwithstanding any provision of this agreement, eligible employees can receive up to two differentials in addition to the EMT and Paramedic Certification pay. Non-Sworn Fire Inspectors will not be eligible for the listed pay differentials. Section 1. Paramedic Assignment Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 61  Packet Pg. 299 of 1138  13 a. Limit of Eligibility. The City reserves the right to limit eligibility for the Paramedic Program to the Fire Fighter classification. The City may, at its discretion, add other classifications within the represented bargaining unit to meet the need of program changes. Differentials for other classifications will be as provided in this Article. b. Additional Candidate Training. As the Program progresses, Management will assess the need for training additional Paramedic candidates. It is Management's intention to provide for such additional training as necessary for Program continuity. c. Section 3. Incentives. Paramedics will receive a one-time cash payment of $500 for each biennial recertification. This provision applies only to active incumbents of authorized paramedic positions who remain in the paramedic assignment for at least one additional year after recertification. The one year requirement after recertification does not apply to those paramedics who may leave the program because of work- related injury or illness, or promotion, nor does it apply when a paramedic is asked by management to recertify in order to voluntarily extend their paramedic service to meet special departmental needs for a period of less than one year. d. Proctoring. Paramedic proctoring assignments will be made by the Chief from among qualified volunteers. Payment of $600 will be made to the primary proctoring paramedic at the conclusion of each proctoring assignment. The Chief or their designee will maintain a list of qualified proctors from among volunteers. Personnel will be selected by the Fire Chief or his or her designee from the list to serve as paramedic proctors. If a conflict arises between the City and the Union regarding the Proctor Program, either side may suspend the program at the annual renewal period and shall remain suspended until a resolution or agreement is reached. e. Field Training Stipend. Employees assigned to provide field training for new paramedic accreditation will receive a $300 stipend to train a new paramedic or EMT to successful completion of paramedic accreditation. This assignment is at the discretion of the Chief or their designee. f. Paramedic Differential. Paramedics who have completed the required training and have been accredited in accordance with the program and possess their paramedic license, will receive a 14% differential in addition to their base salary effective beginning with the date of assignment to Paramedic duty. The Paramedic salary differential will terminate with the cessation of assignment to Paramedic duty. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 62  Packet Pg. 300 of 1138  14 Section 2. Emergency Medical Technician Certification. All employees hired into sworn positions must maintain a current EMT certification as a condition of employment. Employees, including Paramedics, shall receive a three percent (3%) differential in addition to their base salary for the EMT certification. The EMT differential will be provided the first pay period following graduation from an entry level academy or on date of hire where an academy is not required. In the event an employee’s EMT certification expires, the employee will be taken off the line and placed in an unpaid status until the employee can submit proof of EMT recertification. Section 3. Bilingual Pay Employees who have successfully demonstrated proficiency in any of the approved languages shall receive a 5% premium in addition to their base salary. a. Approved Languages: Spanish, Chinese (Mandarin and Cantonese), Japanese, Tagalog, Korean, Vietnamese, Russian, American Sign Language, and such other languages as determined by management. b. Proficiency Requirements The City shall develop and provide a method of testing for proficiency in the above listed languages. The City will pay for the first test in any approved language however subsequent testing will be at the employee’s own expense. An employee must pass the proficiency test to maintain the bilingual pay. The Fire Chief shall have the authority to require employees receiving bilingual pay to re-certify with the Human Resources Department as necessary and reasonable. c. Arbitratability The City’s substantive evaluation of an employee’s knowledge of and skills in a designated second language shall not be subject to the grievance procedure or review by an arbitrator. Section 4. Special Operations Assignment (Haz Mat) A maximum of eighteen positions who are both members of the Special Operations group and assigned the Special Operations, inclusive of Technical Rescue and Hazardous Materials certified personnel, team will receive a 5% differential in addition to their base salary. The differential does not apply to minimum staffing replacements. Section 5. Fire Investigator Differential. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 63  Packet Pg. 301 of 1138  15 A maximum of six (6) Fire inspector personnel including Haz Mat Inspectors who have been trained as Fire investigators and who are regularly assigned to fire investigation duties by the Chief will receive a 5% differential in addition to their base salary. The Chief reserves the right to determine who is regularly assigned to such duties. Section 6. Education Incentive Employees who have successfully achieved the education and training required for the Career Development program will receive either: Tier 1: 2.5% differential in addition to base salary OR Tier 2: 5% differential in addition to base salary a. Tier 1: An employee shall be eligible for Tier 1 incentive upon completion of 300 hours of Fire Chief approved job-related coursework. 1. Tier 1 will begin the first full pay period including July 1, 2026. 2. Employees must successfully pass probation in order to become eligible. b. Tier 2: An employee shall be eligible for tier 2 incentive upon completion of 600 hours of Fire Chief approved job-related coursework. 1. Tier 2 will begin the first full pay period including July 1, 2027. 2. Employees must successfully obtain step 4 of the salary schedule in order to become eligible. c. Conditions of Job-related coursework 1. An Associate’s degree from an accredited college or university in public safety field shall count toward 150 hours of job related coursework. A Bachelor’s degree or higher accredited college or university shall count toward 300 hours of job related coursework. 2. Job related coursework completed to hold EMT or Paramedic licensure in this Article will not be eligible to count toward Tier 1 or Tier 2 required job- related coursework. 3. On duty City provided job-related classes will not be eligible. 4. Under no circumstances may duplicative coursework be submitted. d. All education and training completed under this Program must be actively utilized in the course of the employee’s assigned duties. e. A minimum of 32 hours of Fire Chief approved job-related coursework is required every other calendar year in order to maintain the education incentive. f. The employee is responsible for submitting appropriate official transcripts, certificates, and proof of course completion demonstrating completion of all qualifying components. No incentive shall be granted without verified documentation. g. Incentive pay shall begin the first full pay period after approval by the Fire Chief or designee of require documentation. h. The Fire Chief or designee, shall make final determinations regarding course approval, applicability of training, and eligibility for incentive payment. A joint labor-management committee shall meet as needed to discuss the program. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 64  Packet Pg. 302 of 1138  16 ARTICLE IX - HOLIDAYS Section 1. Named Holidays. Holiday pay is compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduling staff without regard to holidays. The following holidays are recognized as municipal holidays for pay purposes, and regular, employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veterans’ Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24, or December 31 as provided below First Monday in September Second Monday in October Floating Holiday: In addition to the paid holidays listed above, employees shall be excused with pay for one full work shift as a day of reflection (floating holiday) per calendar year. Eligible employees may use the floating holiday on any day mutually agreed by the employee and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day (June 19) or Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by the end of the fiscal year will be deemed forfeited and have no cash value. 161.5 hours are paid annually to an employee at a rate of 6.21 hours each pay period. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours are in addition to the normal biweekly base pay. Shift personnel will be paid 6.21 hours of in lieu of holiday pay each pay period. Hours are prorated and accrued based on hours actually worked. Accrued Holiday balances will be automatically paid off in the months of June and December. Section 2. Conditions. a. Personnel assigned to a 40-hour work schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. b. Personnel assigned to a 40-hour work schedule will receive floating days off with pay in each of the following months: August, September, March, April, and June. The following conditions will hold: Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 65  Packet Pg. 303 of 1138  17 (1) Management will designate the schedule of the paid day off under this section at least thirty days in advance. (2) If, in conformance with this section, Management is unable to schedule a day off in the month indicated for reasons of shift operations, work scheduling or any other reason, the day will be added to the employee's vacation accrual. (3) If an employee fails to take a day off as scheduled by Management under this section, the day off so scheduled will be forfeited. ARTICLE X - OVERTIME COMPENSATION Section 1. Compensation. Shift personnel assigned to overtime relief duty in addition to their regular 56-hour shift schedule shall receive overtime compensation at a rate of one and one-half times the employee's basic 56-hour rate, or out-of-class rate if such applies, for all hours of the relief duty shift. Required off-duty training, excluding remedial training, will be compensated at the rate of one and one-half times the basic 40-hour rate or as otherwise agreed. If an opportunity was provided to allow for the required training to be on duty, but the employee was unable to attend, the training scheduled for off duty will not be eligible for the 40-hour rate. Emergency callback will be compensated at a rate of one and one- half times the basic 40-hour rate to a maximum of 8 hours, and at a rate of one and one-half times the basic 56-hour rate for those hours in excess of 8 hours. Overtime duty assignments will first be made from the voluntary overtime list. If such assignments cannot be filled from the voluntary overtime list, the vacant position will be filled by moving up on-shift personnel through out-of class assignment. Any remaining vacancy will then be filled by overtime duty assignment made in reverse order of hire date seniority according to specialty and qualifications required to be assigned. The overtime duty assignment seniority list will be adjusted annually on October 31. ARTICLE XI - APPARATUS STAFFING Engine, truck and combination rescue companies shall be deployed for emergency services purposes at the level of one Fire Captain, one Fire Apparatus Operator and one Fire Fighter. Truck companies have the option of deploying at the level of two Fire Apparatus Operators instead of one Fire Apparatus Operator and one Firefighter. This option shall be determined by seniority. Paramedic ambulance staffing shall be two personnel; the City will dispatch personnel on Emergency Medical Service calls such that a minimum of 1 licensed paramedic responds. The Foothill Fire Station #8, when activated by the Fire Chief, shall be staffed with a minimum of one Fire Apparatus Operator and one Fire Fighter. City may dispatch a two-person apparatus (ex: squad or quick response vehicle) with a minimum of 1 paramedic. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 66  Packet Pg. 304 of 1138  18 ARTICLE XII - WORK ASSIGNMENTS AND TRANSFERS It is the intent of the Palo Alto Fire Administration and Local 1319 that work assignments and transfers will reflect the best interests of the Fire Department and the City. The Fire Department will maintain a constant state of readiness to defend against fire and other disasters. It is therefore imperative that all Fire Department divisions assign personnel in the best manner to respond to the needs of the City and the Department. It is also acknowledged that the Fire Chief is responsible to make and/or approve the work assignments or transfers of Fire Department personnel. The Fire Chief or designee will maintain a three year station and shift assignment, seniority-based bid system covering the following classifications within Fire Operations on a rotational basis: Fire Captain, Apparatus Operator and Fire Fighter. The Fire Chief, or his designee, shall initiate personnel assignments and transfers to balance platoon or division strength, fill permanent or temporary vacancies and provide required training to individual personnel. Such assignments will be based on seniority, except where career development, training, special assignments, skills and documented performance issues are specifically identified in writing, management may make assignments based on such issues. For purposes of this article, seniority shall be computed from the date of entry into the current classification. Section 1. Shipouts. When possible, least senior Fire Fighters will be given short term or shipout relief duty. In order to maintain training continuity, shipouts of probationary personnel will be subject to the approval of the Fire Chief or their designee. Section 2. Vacation Relief Positions. In order that platoon strengths can be balanced more quickly and to reduce the need for excess overtime, two positions will be designated for vacation relief. These positions will be the lowest two on the Department seniority list who have completed their probationary period. a. The vacation relief persons will be assigned to one station when not on relief assignment. b. Relief assignment can be made to any Station or shift where a shortage of personnel will cause unnecessary overtime. c. Shortages may be caused by vacation, sick leave, disability or any leave of absence that causes a shift to be short of personnel while another has a surplus. d. Shift transfers will be made so as not to cause the relief person to work more than the prescribed number of hours in the prescribed period. e. Relief assignments will be made and hours will be coordinated by the Battalion Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 67  Packet Pg. 305 of 1138  19 Chief's office. Section 3. Transfer Requests. Non-probationary fire personnel may submit transfer requests to their immediate supervisor to be forwarded to the appropriate chief officer. Providing that Departmental needs are satisfied, such transfers will be administered using first a mutually agreeable exchange, secondly seniority. The transfer requests shall remain on file during the year and may be granted when a vacancy occurs, providing the requesting employee possesses the experience and performance ability required to fill the vacancy. Section 4. Special Assignments. Management reserves the right to assign personnel to career development opportunities, special projects, seminars, programs and selected educational and/or training courses, based on Fire Department needs and the performance of the employee. Section 5. Continuous Hourly Service. Continuous hours of service in excess of 96 hours are subject to approval by the Fire Chief or designee. Approval may be granted up to 120 hours when an employee has not been engaged in a greater than usual level of activity or is not fatigued. ARTICLE XIII - TRAINING COORDINATION Section 1.Coordination. Three shift employees per platoon may be assigned to assist the Training Officer in the coordination, preparation and scheduling of the training program. It is agreed that volunteers will first be sought for such assignment, and further agreed that the details of this section shall be established by mutual agreement between the Fire Chief and the Union. ARTICLE XIV - PROMOTION Section 1. Promotion Step Level. All regular promotions from classifications within the representation unit to the classification of Fire Captain will be made at the sixth step on the salary range. Section 2. Promotion Process Information. For promotions to positions within the representation unit, promotion process information will be available in the Human Resources Department office at the time of posting. Information will include applications, Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 68  Packet Pg. 306 of 1138  20 minimum qualifications, study material reference information, if appropriate, and information on passing scores. Any changes in an established testing process must be submitted in writing to the Union for review and input no fewer than 60 days prior to the beginning of the process. ARTICLE XV - REDUCTION IN FORCE Section 1. Order of Reduction. If the work force is reduced (reduction in force) within a represented classification, unit employees having the shortest length of service with the Fire Department will be laid off first so long as employees retained are fully qualified, trained and capable of performing remaining work. ARTICLE XVI - SELECTIVE CALL BACK WITH REGARD TO RESIDENCY Section 1. In Case of Emergency Management may use selective call back with regard to residency in cases of emergency. ARTICLE XVII - HEALTH BENEFITS Section 1. Maintenance of Levels Except as otherwise set forth herein, the City will maintain the present level of benefits on all City-sponsored medical programs. Section 2. Vision Care a) Level of Benefits: The City provides a base vision plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a vision “buy-up” plan. Dependents include domestic partners, as defined under Article XX Section 3(b). b) Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees will be responsible for premium payments required to enroll in the “buy up” vision plan. Section 3. PEMHCA Health Plan. a. ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Effective July 1, 2025, the City will increase its maximum contribution to the following: Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 69  Packet Pg. 307 of 1138  21 Medical Category Premium Total Maximum City Contribution (inclusive of PEMHCA contribution*) effective July 1, 2025 Employee plus one $1,885.00 Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the following percentages: • Employee only: 2% • Employee plus one: 3% • Employee family: 5% (inclusive of PEMHCA contribution*) effective January 1, 2027 Employee plus one $1,942.00 Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by four percent (4%). Medical Category Premium Total Maximum City Contribution (inclusive of PEMHCA contribution*) effective January 1, 2028 Employee plus one $2,020.00 The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 70  Packet Pg. 308 of 1138  22 * Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the Total Maximum City Contribution described above. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. b. Flexible Compensation: Effective January 28, 2023, in lieu of additional increases to the City’s medical premiums, hourly wages for all bargaining unit classifications were increased by $100 per month ($1200 per year). Employees can utilize this cash payment for any purpose, including to cover health insurance premiums or contribute to flexible spending accounts/457 deferred compensation plans. Effective the first full pay period of January 2024, hourly wages for all bargaining unit classifications were increased by an additional $100 per month. c. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. d. Alternate Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any non-City of Palo Alto sponsored or association medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical insurance coverage and receive cash payments in the amount of two hundred and eighty four dollars ($284) for each month City coverage is waived. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 71  Packet Pg. 309 of 1138  23 Examples of waivers eligible for this payment are: • Employee waives all applicable City medical coverage; or • Employee is eligible to enroll his or her spouse or domestic partner and waives medical coverage for the spouse or domestic partner; or • Employee has additional eligible dependents and waives family-level medical coverage. Participation must result in a health insurance cost savings to the City and payments per employee shall not exceed a total of two hundred eighty four dollars ($284) per month. To participate in the program the employee and dependents must be eligible for coverage under PEMHCA medical plans, complete a waiver of medical coverage form, and provide proof of eligible alternative medical coverage. Payments will be made in the employee’s paycheck beginning the first month following the employee’s completion of the waiver form. Payments are subject to state and federal taxes and are not considered earnings under PERS law. Employees are responsible for notifying the City of any change in status affecting eligibility for this program (for example, life changes affecting dependent’s eligibility for medical coverage through the employee) and will be responsible for repayment of amounts paid by the City contrary to the terms of this program due to the employee’s failure to notify the City of a change in status. e. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. ARTICLE XVIII - DENTAL BENEFITS Section 1. Level of Benefits. The City will maintain the present level of benefits on the City- sponsored dental program. The City provides a base dental plan for all eligible employees and dependents. Additionally, eligible employees will have the option to enroll in a dental “buy-up” plan. Section 2. Premiums. The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled for coverage under the base dental plan. Dependents will include domestic partners, as defined under Article XX, Section 3(b). Employees will be responsible for premium payments required to enroll in the “buy up” dental plan. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 72  Packet Pg. 310 of 1138  24 ARTICLE XIX - LIFE INSURANCE Section 1. Premiums. The City will provide employees with Basic and Supplemental life insurance plans. The City shall pay the premium for basic life insurance coverage equal to one times the employee’s annual salary. Employees will have the option of enrolling in supplemental life insurance by paying the premiums required to enroll in the plan. ARTICLE XX - RETIREMENT BENEFITS Section 1. PERS Retirement Formula. Safety Pension Group A: 3%@50 Safety Retirement The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). Safety Pension Group B: 3%@55 Safety Retirement Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (often referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). Safety Pension Group C: 2.7% at Age 57 Safety Retirement Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. Miscellaneous Pension Formulas: a. Miscellaneous Pension Group A: 2.7% at 55. The City provides retirement Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 73  Packet Pg. 311 of 1138  25 benefits under the California Public Employees Retirement System at the level of 2.7% at age 55 for employees hired before July 17, 2010, with a one year final compensation period. b. Miscellaneous Pension Group B: 2% at 60:For miscellaneous employees hired on or after July 17, 2010, and before January 1, 2013, and employees hired on or after January 1, 2013 who are not “new members” of CalPERS as defined in the Public Employees’ Pension Reform Act (often referred to as “Classic” CalPERS members)the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60), with a one (1) year final compensation period. c. Miscellaneous Pension Group C: 2% at 62. Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two percent at age 62 (2%@62) retirement formula with a three (3) year final compensation period. Section 2. PERS Member Contribution. a. Employees in all represented classes in Pension Groups A and B described above will make the 9% PERS member contributions by payroll deduction. b. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. c. When employees pay their PERS Member Contribution pursuant to section 3a and 3b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). Section 3. Additional Employee PERS contributions In addition to the PERS member contribution as required under section 2. a, b and c above, all employees in pension groups a, b and c shall contribute the additional following contributions: a. In addition to the Member Contribution required per CalPERS 20516 contract amendment all employees regardless of pension formula in this unit shall pay 3% towards the Employer share of Pension. b. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the employer share of Pension for a total of 4%. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 74  Packet Pg. 312 of 1138  26 Section 4. Option 2 Death Benefit. The City provides the Pre-Retirement Option Settlement 2 Death Benefit. The Pre-Retirement Optional Settlement 2 Death Benefit provides the spouse of a deceased member, who was eligible to retire for service at the time of death, with an alternate option to the lump sum Basic Death Benefit whereby the surviving spouse can elect a monthly allowance equal to the amount the member would receive if he/she had retired from service on the date of death and elected Optional Settlement 2 (the highest monthly allowance a member can leave a spouse). Section 5. Military Service Credit. The City will provide the Public Employees’ Retirement System benefit known as “Section 20930.3, Military Service Credit as Public Service.” Section 6. 1959 Survivor Benefit. The City will continue to provide the basic level of 1959 PERS Survivor Benefit to eligible employees in accordance with Government Code section 21571. Section 7. Employer Contributions to 457 Plan Effective the first full pay period following July 1, 2020, the City will contribute the equivalent of 1% of the employee’s pensionable salary into the 457 plan. Eligibility: a. Employees must be enrolled in an eligible City sponsored 457 plan b. Employees who reach the maximum as defined by the IRS will not receive additional contributions c. Employee must be making PERS contributions ARTICLE XXI - RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to IAFF employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Starting June 1, 2016 through August 31, 2016, the City provided active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 75  Packet Pg. 313 of 1138  27 Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XXII - DEPENDENT CARE ASSISTANCE PROGRAM (DCAP) Section 1. DCAP. The City will provide a dependent care assistance program for employees subject to the provisions of applicable law. The program will remain in effect subject to a reasonable minimum participation level and availability of third party administrative services at a reasonable cost. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. Section 2. HCFSA. The City will provide healthcare flexible spending program for employees subject to the provision of applicable law. Disputes regarding the administration of the plan shall be subject to the dispute resolution procedure provided by the plan document. The HCFSA program will be available to employees effective January l, 2026, and remain in effect subject to a reasonable minimum participation level and availability of third-party administrative services at a reasonable cost. ARTICLE XXIII - VACATION ACCRUAL Section 1. Accrual Rate. All eligible fire suppression persons shall accrue vacation at the following rate for continuous service performed in a pay status. Non-shift representation unit employees shall accrue the 40-hour equivalent--one shift equals sixteen hours. a. For employees completing less than four years continuous service, the accrual rate shall be five duty shifts per year. b. For employees completing four but not more than nine years continuous service, the accrual rate shall be eight duty shifts per year. c. For employees completing nine but not more than 14 years continuous service, the accrual rate shall be 10 duty shifts per year. d. For employees completing 14 but less than 19 years continuous service, the accrual rate shall be 11 duty shifts per year. e. For employees completing 19 or more years continuous service, the accrual rate shall be 12 duty shifts per year. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 76  Packet Pg. 314 of 1138  28 At the time of initial appointment to the City, the City may credit an employee for prior years of public service in a city, county, special district, state or federal government agency, up to a maximum of four (4) years of service. The City Manager or designee shall identify the number of years for which the employee will receive credit (up to the four (4) year maximum). Section 2. Unused At Termination. Represented employees who fail to use all vacation as accrued may continue the accrual balance and be entitled to all accrued but unused vacation upon termination, except as limited below. Section 3. Limits. Vacation accrual balances shall be limited to three times the annual accrual rate. Accrual credit beyond this limit shall not be recognized or compensated, except that for employees of record as of January 1, 1984 who have vacation excess on a one-time basis shall be set aside (banked) to be subsequently used as vacation or paid at termination. No additions may be made to the bank. The bank is established only to facilitate changeover from unlimited to three times annual accrual rate limitation on vacation accrual as herein provided. ARTICLE XXIV - USE OF VACATION Section 1. Maximum Number of Slots. The maximum number of vacation scheduling slots for representation unit suppression employees is four (4) per platoon on a year- round basis. During the term of the contract, parties agree to meet to discuss the impact of the number of vacation slots per day on daily staffing. Section 2. Approvals. Vacation scheduling must be approved by the Battalion Chief or Fire Chief. The minimum is twelve (12) hours or more for suppression employees. Advance vacation schedules for suppression shall begin either at 8:00 a.m. or 8:00 p.m. Section 3. Vacation Pay. Vacation pay shall be made available in advance of regular pay day provided that employee requests such advance in writing to the Finance Department at least two weeks prior to his/her vacation date. The employee's supervisor must verify vacation date on the request. Section 4. Illness on Vacation. When an employee becomes ill while on vacation and such illness can be supported by a statement from an accredited physician or the employee is hospitalized for any period, the employee shall have the period of illness charged against sick leave and not against vacation leave. Section 5. When to be Taken. The time at which an employee may use accrued vacation leave and the amount to be taken at any one time shall be determined by the Chief with particular regard for the needs of the City, but insofar as possible, considering Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 77  Packet Pg. 315 of 1138  29 the wishes of the employee. Section 6. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 7. Waiting Period. Employees shall complete six months continuous service before using accrued vacation leave. Section 8. Double Compensation Prohibited. Employees shall not work for the City during their vacation. Section 9. Cash out Option. Once each calendar year an employee may cash out eight (8) or more hours of vacation accrual in excess of eighty (80) hours to a maximum of one hundred twenty (120) hours; PROVIDED, that the employee has taken eighty (80) hours of vacation off with pay in the previous twelve (12) months. ARTICLE XXV - SICK LEAVE Section 1. Statement of Policy. Sick leave shall be allowed and used only in case of actual personal sickness or disability, medical or dental treatment, or as authorized in Section 9. Sick leave may be used for illness in the immediate family (wife, husband, child, parent, parent-in-law, brother, sister, registered domestic partner, or close relative residing in the household of the employee.) Section 2. Eligibility. Regular employees shall be eligible to accrue and use sick leave. Section 3. Accrual. Sick leave shall be accrued bi-weekly, provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of six shifts per year. Section 4. Accumulation. Accumulated sick leave may be accrued without limit, except as provided in Section 8 below. Section 5. Use. Sick leave may be used as needed and approved, to the point of depletion, at which time the employee will no longer receive pay for sick leave. A new employee may, if necessary, use up to forty-eight (48) hours or shift equivalent of sick leave at any time during the first six months of employment. Any negative balances generated by such utilization will be charged against future accrual or deducted from final paycheck in the event of termination. An employee who has been disabled for 60 consecutive days and who is otherwise eligible both for payment under the long-term disability group insurance coverage and accrued sick leave benefits may, at his/her option, choose either to receive the long- term disability benefits or to utilize the remainder of his/her accrued sick leave prior to Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 78  Packet Pg. 316 of 1138  30 applying for long-term disability benefits. Sick leave will not be granted for illness occurring during any leave of absence other than sick leave, unless the employee can demonstrate that it was necessary to come under the care of a doctor while on such other leave of absence. When an employee finds it necessary to be absent for any reason, he/she should cause the facts to be reported to the department within 60 minutes prior to his/her regular starting time on the first working day of absence, and shall regularly report on, or account in advance for each work day thereafter unless hospitalized or otherwise indisposed. Such reports may be subject to written documentation. Sick leave shall not be granted unless such report or advance accounting has been made, provided, however, that the department head may grant exception to this policy where the circumstances warrant. Section 6. Depletion of Sick Leave Benefits. Upon depletion of sick leave or the beginning of the period to be covered by payments under long-term disability group insurance coverage, whichever comes first, an employee may be granted a medical leave of absence without pay for a period not exceeding sixty days. If the employee is unable to return to work at the end of this period, he/she must request further medical leave which will be subject to the approval of the City Manager. If further leave is granted, the employee must notify the City of intent to return to work every thirty days. If further leave is not granted, the employee's service with the City shall be considered terminated. Section 7. Forfeiture Upon Termination. Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and Section 8. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. Section 8. Payment for Accumulated Sick Leave. Eligible employees (those hired before December 31, 1983) who leave the municipal service in good standing, or who die while employed in good standing by the City, and who have fifteen or more years of continuous service, shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their basic hourly rate of pay at termination. Full sick leave accrual will be paid in the event of termination due to disability. For new employees hired after December 31, 1983, sick leave accrual accumulation will be limited to 1,000 hours with no payoff provisions for unused balance at termination for any reason. Section 9. Personal Business Leave Chargeable to Sick Leave. It is agreed between the parties that all shift personnel represented by the Union shall have the right to charge up to forty-eight (48) hours personal business leave per year to sick leave, and that all non-shift personnel shall have the right to charge up to twenty (20) hours personal business leave per year to sick leave. Such personal business leave shall be allowed Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 79  Packet Pg. 317 of 1138  31 only on a staffing available basis and where the provisions of the minimum staffing agreement are not affected. "Staffing available" means at or above minimum staffing levels as defined in Article XII. Section 10. Return to Work or Continue Work With Limited Duty. In cases of non- work-related injury, illness or pregnancy an employee, upon approval of the Fire Chief and the City Safety Officer, may return to work or continue work with doctor-approved limited duty. Approval for such limited duty shall be based upon department ability to provide work consistent with medical limitations and the length of time of the limitations. Shift employees must be willing to accept any non-shift limited duty schedule work location and may be subject to the reasonable availability of limited duty assignments. The City doctor may be consulted in determining work limitations. ARTICLE XXVI - SUBPOENAS Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. ARTICLE XXVII - WORKERS' COMPENSATION Section 1. Status Reporting While on Disability. Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status of medical treatment therapy and physical condition. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXVIII - PHYSICAL FITNESS MEDICAL EXAMINATIONS Physical fitness medical examinations for all represented employees may include chest x-rays every three years unless otherwise directed by a physician, eye examination and hearing examination. ARTICLE XXIX- LEAVES OF ABSENCE WITHOUT PAY Section 1. Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physician's verification including diagnosis and medical work restriction. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 80  Packet Pg. 318 of 1138  32 Section 2. Other Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her department head in the event of death to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. Section 9. Use of paid accruals while on leave. During unpaid leaves of absence for disability or other reasons, the employee may elect and the City may require the employee to use accrued vacation paid leave credits in a manner consistent with state and federal law. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. ARTICLE XXX - LEAVES OF ABSENCE WITH PAY Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 81  Packet Pg. 319 of 1138  33 Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as wife, husband, son, son-in-law, daughter, daughter-in-law, father, mother, brother, brother-in-law, sister, sister-in-law, mother-in-law, father-in-law, grandfather, grandfather-in-law, grandmother, grandmother-in-law, uncle, aunt, registered domestic partner, or a close relative residing in the household of the employee. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. ARTICLE XXXI – VOLUNTEER LEAVE PROGRAM The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide members of Local 1319 International Association of Fire Fighters (IAFF) employees the opportunity to donate their accrued vacation time to assist fellow members of IAFF either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: 1. Voluntary 2. Irrevocable 3. Confidential, unless disclosure is required by law Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 82  Packet Pg. 320 of 1138  34 4. In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). 5. The employee shall be required to exhaust all other types of leave to request donated leave 6. It is understood that employees seeking or receiving leave under this program will apply for long-term disability benefits for which they may be eligible 7. Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverages through the City 8. If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full- time care by the employee. Certification of this requirement by a health care professional is required 9. The maximum donated time a donee may receive is 12 months (if available). 10. Applications to donate leave or receive leave under this Program are made to the Human Resources Department 11. This is a pilot program and is subject to cancellation by either party IAFF members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). The City reserves the right to modify or terminate this program at any time. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non- occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XXXII- TUITION REIMBURSEMENT Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 83  Packet Pg. 321 of 1138  35 Section 1. Options. Effective July 1, 2004 the tuition reimbursement program was amended to provide each employee the option of receiving the $1,000 as taxable cash or as a contribution to deferred compensation. The tuition reimbursement program will be eliminated effective July 1, 2012 with no further payouts starting in FY 12-13 and on-going. ARTICLE XXXIII - PER DIEM TRAVEL EXPENSES Section 1. City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. ARTICLE XXXIV - HOUSE FUND ITEMS Section 1. Station House Fund. The station house fund per year, per shift employee shall be $100.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with non-food house fund items: TV purchase and repair. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the station house fund. The Fire Fighters agree to maintain the voter registration program. ARTICLE XXXV- PARKING Section 1. Entitlements. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994, may initially receive a parking permit for another downtown lot, subject to availability of space at the Civic Center Garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. ARTICLE XXXVI- GRIEVANCES The City and the Union agree to establish a grievance procedure as follows: 1. Definition: A grievance is any complaint or dispute regarding the application of interpretation of this Memorandum of Understanding, Department rules, regulations, policies or procedures relating to wages, hours or other terms and Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 84  Packet Pg. 322 of 1138  36 conditions of employment. 2. Any non-probationary employee represented by the Union may file and process a grievance. Such aggrieved employees may be represented by the Union or may represent themselves in preparing and presenting their grievance at any level of review. The Union may file a grievance when a Union right not directly related to an individual employee becomes subject to dispute. 3. Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance was filed in writing. 4. Written grievances shall be submitted on forms provided by the City or on forms which are mutually agreeable to the City and the Union. The Union shall deliver a copy of a written grievance to the Human Resources Department Director on the same date that it is first filed with another City representative under the provisions of the below grievance procedure. 5. The time limits specified in this section may be extended by mutual agreement in writing of the aggrieved employee or Union and the reviewer concerned. Should a decision not be rendered within a stipulated time limit, the aggrieved employee may immediately appeal to the next step. The grievance will be considered settled if the decision of any step is not appealed within the specified time limit. 6. If a grievance is related to a promotional process to positions within the representation unit, Step I shall be directed to the Deputy Fire Chief (or Fire Marshal for FPB positions). 7. Step I. The aggrieved employee will first attempt to resolve the grievance through informal discussions with the immediate supervisor by the end of the tenth business day following the discovery of the incident upon which the grievance is based. Every attempt will be made to settle the issue at this level. Step II. If the grievance is not resolved through informal discussion, it may be submitted in writing to the Battalion Chief (Deputy Fire Chief for Captain grievances) within ten business days of the informal discussion. The Battalion Chief/Assistant Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step III. If the grievance is not resolved in Step II, it may be submitted in writing to the Fire Chief within ten business days of receipt of the Battalion Chief's/ Deputy Fire Chief's written response. The Fire Chief will have ten business days from receipt of the grievance to review the matter and prepare a written response. If the grievance is denied, the response shall contain the reasons therefore. Step IV. If the grievance is not resolved in Step III, the aggrieved employee may Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 85  Packet Pg. 323 of 1138  37 submit the grievance to the City Manager for final determination or to binding grievance arbitration. All Step IV appeals must be filed in writing at the Human Resources Department Office within ten business days of receipt of the Fire Chief's response under Step III. All hearings before the City Manager shall be pursuant to the rules and regulations set forth in the City of Palo Alto Merit Rules and Regulations. Hearings before an arbitrator will be as set forth below. In the event the aggrieved employee decides to proceed to arbitration, he/she shall select jointly with the Director of Human Resources an arbitrator. If the parties are unable to agree on an arbitrator, they shall jointly request a panel of five qualified and experienced arbitrators from the State Conciliation Service. Upon receipt of the list of arbitrators, the names shall be alternately struck until one name remains who shall serve as arbitrator. The arbitrator shall be jointly contacted by the parties. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of the Memorandum of Agreement and such Merit System rules, regulations, policies, procedures, City ordinances or regulations relating to terms or conditions of employment, wages or fringe benefits, as may hereafter be in effect in the City insofar as may be necessary to the determination of grievances appealed to the arbitrator. The arbitrator shall be without power to make any decision: a. Regarding matters of interest. b. Contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum of Agreement. c. Granting any wage increases or decreases. d. Granting pay or benefits for any period of time prior to the execution date of this Memorandum of Agreement. Where either party seeks arbitration and the other party claims the matter is not subject to the arbitration provisions of the Memorandum of Agreement, the issue of arbitrability shall first be decided by the arbitrator using the standards and criteria set forth in this Memorandum of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Copies of the arbitrator's decision shall be submitted to the City and the aggrieved employee. All direct costs emanating from the arbitration procedure shall be shared equally by the City and the aggrieved employee or the Union. It is further agreed that the provisions of this section shall be incorporated as part of Chapter 11 of the City of Palo Alto Merit System Rules and Regulations. Existing procedures set forth in Chapter 11, to the extent they are inconsistent with the provisions contained herein, are superseded. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 86  Packet Pg. 324 of 1138  38 ARTICLE XXXVII- SAFETY COMMITTEE Section 1. Committee A Safety Committee comprised of four representation unit members appointed by the Union, and at least two members of Management, will continue to meet. The Committee may make safety recommendations to the Fire Chief regarding equipment, vehicles and apparatus and may review all accidents involving represented personnel. Management shall inform the Safety Committee of all accidents involving injuries to represented personnel. ARTICLE XXXVIII – MISCELLANEOUS Section 1. Section 1. Uniforms. The value of the purchase, rental and/or maintenance of the required uniforms shall be reported as special compensation to the extent legally permissible, pursuant to Title 2 CCR, Section 571(a)(5) as Uniform Allowance. Based upon existing uniform standards and the City’s cost experience, the value of this benefit shall be reported as $15.31 per pay period. The City will supply complete uniforms as described in Fire Department Policy 1031. The City will issue four T-shirts to each uniformed employee each July These T-shirts are for use on duty only and will be maintained by the employee. Section 2. Removal of Disciplinary Actions. Records of disciplinary actions shall be removed from the personnel file of a representation unit employee upon written request by the employee after a period of three years, or sooner if mutually agreed by the Fire Chief and the employee. If the disciplinary action involved violations of the City’s anti- harassment policy, state/federal harassment or discrimination laws, or if there have been subsequent violations of the same policy during the three-year period, the Fire Chief may deny the request for removal. In such cases, the employee may request a review meeting with the Fire Chief or designee, Union President or designee, and Human Resources. The final decision following this review meeting is final and not subject to any grievance or appeal rights. ARTICLE XXXIX - FULL UNDERSTANDING Section 1. Full and Entire Understanding. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 87  Packet Pg. 325 of 1138  39 Section 2. Fair Labor Standards Act. Compensatory time off with Management approval may be used as an alternative to overtime compensation only within the 27- day work period within which the overtime is worked. Section 3. Severability. Should any of the provisions herein contained be rendered or declared invalid by reason of any existing State or Federal legislation or by reason of State or U.S. Supreme Court ruling, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 4. Good Faith. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Understanding be administered and observed in good faith. Section 5. Merit System Rules and Regulations. During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. Section 6. Station Consolidation or Relocation . During the term of this agreement, at management request, the parties agree to meet and confer with regard to issues pertaining to fire station consolidation or relocation. Section 7. Meet and Confer. Nothing in this agreement shall preclude the parties from mutually agreeing to meet and confer on any subject within the scope of representation during the term of this agreement. ARTICLE XL – 48/96 Work Schedule The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire Department policy 205.6 typical workday and 1009.8.1 Reporting for Duty- Holidays. ARTICLE XLI – FUTURE SERVICE DELIVERY MODELS Effective upon request of the City, the parties will meet and confer in good faith regarding the service delivery model of current inspection services and transport during the term of this Agreement. ARTICLE XLII - DURATION This Memorandum of Agreement shall become effective upon ratification by both parties hereto and remain in effect through June 30, 2028. Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 88  Packet Pg. 326 of 1138  38 EXECUTED: FOR: FOR: INTERNATIONAL ASSOCIATION CITY OF PALO ALTO FIRE FIGHTERS __ __ _____ __ __ ___ __________ __________ Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 89  Packet Pg. 327 of 1138  39 Item 8 Attachment A - MOA - IAFF Local 1319        Item 8: Staff Report Pg. 90  Packet Pg. 328 of 1138  Memorandum of Agreement City of Palo Alto and Palo Alto Fire Chiefs’ Association July 1, 2025 – June 30, 2028 Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 91  Packet Pg. 329 of 1138  1 MEMORANDUM OF AGREEMENT Table of Contents PREAMBLE ____________________________________________________________________________________ 4 ARTICLE I - RECOGNITION _______________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 ARTICLE II - NO DISCRIMINATION _________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 SECTION 2 ___________________________________________________________________________________ 4 ARTICLE III - PAYROLL DEDUCTIONS _______________________________________________________________ 4 SECTION 1 ___________________________________________________________________________________ 4 SECTION 2. CERTIFICATION OF UNION MEMBERSHIP _______________________________________________________ 5 SECTION 3. INDEMNIFICATION ______________________________________________________________________ 5 ARTICLE IV - NO STRIKES ________________________________________________________________________ 5 SECTION 1 ___________________________________________________________________________________ 5 ARTICLE V - SALARY PROVISIONS _________________________________________________________________ 5 SECTION 1. SALARY RANGE ADJUSTMENTS. _____________________________________________________________ 5 SECTION 2. EMT DIFFERENTIAL _____________________________________________________________________ 6 SECTION 3. 40-HOUR WORK WEEK ASSIGNMENT DIFFERENTIAL _______________________________________________ 6 SECTION 4. OUT OF COUNTY STRIKE TEAM PAY. _________________________________________________________ 6 ARTICLE VI – HOLIDAYS _________________________________________________________________________ 7 SECTION 1. NAMED HOLIDAYS. _____________________________________________________________________ 7 SECTION 2. DAY OF REFLECTION _____________________________________________________________________ 7 SECTION 3. 56-HOUR WORK WEEK ASSIGNMENTS. _______________________________________________________ 7 SECTION 4. 40-HOUR WORK WEEK ASSIGNMENTS. _______________________________________________________ 8 ARTICLE VII - VACATION ACCRUAL _________________________________________________________________ 8 SECTION 1. ___________________________________________________________________________________ 8 SECTION 2. 56-HOUR WORKWEEK ASSIGNMENTS ________________________________________________________ 8 SECTION 3. 40-HOUR WORKWEEK ASSIGNMENTS. ________________________________________________________ 8 ARTICLE VIII - VACATION CASH OUT _______________________________________________________________ 9 SECTION 1. LIMITATION ON USE. ____________________________________________________________________ 9 SECTION 2. CASH OUT OPTION. _____________________________________________________________________ 9 ARTICLE IX - MANAGEMENT ANNUAL LEAVE _______________________________________________________ 10 SECTION 1 __________________________________________________________________________________ 10 ARTICLE X - OTHER PAID LEAVES _________________________________________________________________ 10 SECTION 1. CITY MANAGER GRANTED LEAVES __________________________________________________________ 10 SECTION 2. COUNCIL GRANTED LEAVE _______________________________________________________________ 10 SECTION 3. EMPLOYEE'S TIME OFF TO VOTE ___________________________________________________________ 10 SECTION 4. LEAVES OF ABSENCE; DEATH IN IMMEDIATE FAMILY ______________________________________________ 11 Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 92  Packet Pg. 330 of 1138  2 SECTION 5. JURY DUTY; LEAVE OF ABSENCE ____________________________________________________________ 11 SECTION 6. SUBPOENAS _________________________________________________________________________ 11 ARTICLE XI - OTHER LEAVE PROVISIONS ___________________________________________________________ 12 SECTION 1. DISABILITY. __________________________________________________________________________ 12 SECTION 2. OTHER UNPAID LEAVES. _________________________________________________________________ 12 SECTION 3. ACCRUED VACATION CREDITS. _____________________________________________________________ 12 SECTION 4. APPROVAL OF DEPARTMENT HEAD. _________________________________________________________ 12 SECTION 5. APPROVAL BY CITY MANAGER _____________________________________________________________ 12 SECTION 6. ABSENCE WITHOUT LEAVE. _______________________________________________________________ 12 SECTION 7. LEAVE OF ABSENCE; DEATH OUTSIDE THE IMMEDIATE FAMILY. _______________________________________ 12 SECTION 8. MILITARY LEAVE OF ABSENCE. _____________________________________________________________ 12 ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM _________________________________________ 12 SECTION 1. __________________________________________________________________________________ 12 SECTION 2. __________________________________________________________________________________ 12 SECTION 3. __________________________________________________________________________________ 13 SECTION 4. __________________________________________________________________________________ 13 SECTION 5. __________________________________________________________________________________ 13 SECTION 6. __________________________________________________________________________________ 14 ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS _________________________________ 14 ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT ___________________________________________________ 15 SECTION 1. __________________________________________________________________________________ 15 ARTICLE XV - PHYSICAL EXAMS __________________________________________________________________ 16 ARTICLE XVI - BENEFIT PROGRAMS _______________________________________________________________ 16 SECTION 1. HEALTH PLAN - ACTIVE EMPLOYEES ______________________________________________________ 16 SECTION 2. DUAL COVERAGE. _____________________________________________________________________ 18 SECTION 3 DENTAL BENEFITS ______________________________________________________________________ 18 SECTION 4. VISION CARE. ________________________________________________________________________ 18 SECTION 5. EMPLOYEE ASSISTANCE PLAN _____________________________________________________________ 18 ARTICLE XVII – RETIREMENT MEDICAL PLAN _______________________________________________________ 19 SECTION 1. RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED BEFORE JANUARY 1, 2004: ______________________ 19 SECTION 2. 20-YEAR VESTING FOR RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2004: _ 19 ARTICLE XIII – BASIC LIFE INSURANCE _____________________________________________________________ 19 ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE _____________________________________________________ 19 ARTICLE XX– LONG TERM DISABILITY INSURANCE ___________________________________________________ 19 ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES ____________________________ 20 ARTICLE XXII-WORKERS’ COMPENSATION _________________________________________________________ 20 ARTICLE XXIII- RETIREMENT PENSION PLANS _______________________________________________________ 20 SECTION 1. SAFETY PERS RETIREMENT FORMULA. _______________________________________________________ 20 SECTION 2. STATUS DETERMINATION ________________________________________________________________ 21 SECTION 3. EMPLOYER CONTRIBUTIONS TO 457 PLAN _____________________________________________________ 21 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES ___________________________________ 22 SECTION 1. STATION HOUSE FUND. _________________________________________________________________ 22 Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 93  Packet Pg. 331 of 1138  3 SECTION 2. NON-FOOD HOUSE ITEMS _______________________________________________________________ 22 SECTION 3. PER DIEM TRAVEL EXPENSES FOR CITY BUSINESS ________________________________________________ 22 SECTION 4. PARKING ___________________________________________________________________________ 22 SECTION 5. UNIFORM. __________________________________________________________________________ 22 ARTICLE XXV – WORK ASSIGNMENTS _____________________________________________________________ 22 SECTION 1. __________________________________________________________________________________ 22 SECTION 2. WORKING OUT OF CLASSIFICATION __________________________________________________________ 22 ARTICLE XXVI - FULL UNDERSTANDING ____________________________________________________________ 23 SECTION 1 __________________________________________________________________________________ 23 SECTION 2. SEVERABILITY. ________________________________________________________________________ 23 SECTION 3. __________________________________________________________________________________ 23 SECTION 4. __________________________________________________________________________________ 23 SECTION 5. __________________________________________________________________________________ 23 ARTICLE XXVII - DURATION _____________________________________________________________________ 23 ARTICLE XXVIII- 48/96 WORK SCHEDULE __________________________________________________________ 23 APPENDIX A__________________________________________________________________________________ 25 Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 94  Packet Pg. 332 of 1138  4 CITY OF PALO ALTO AND PALO ALTO FIRE CHIEFS’ ASSOCIATION PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and the Palo Alto Fire Chiefs’ Association, hereinafter referred as the "Association", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. The City recognizes the Association as the exclusive representative of an employee group consisting solely of the classifications of Battalion Chief 56-hour workweek, and Battalion Chief 40-hour workweek who are regularly employed by the City. ARTICLE II - NO DISCRIMINATION Section 1. The Association and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation or any other basis recognized by federal, state or local law under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Association, or participation in the lawful activities of the Association. Section 2. The Association and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Association and to abide by the express provisions of applicable State and local laws. ARTICLE III - PAYROLL DEDUCTIONS Section 1. The City shall deduct Association membership dues assessments and insurances authorized by the Association. This will be accomplished by payroll deductions from the bi- weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an authorization card. The Association will be the custodian of records for individual employee membership and dues deduction forms. The Association will maintain all authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to be made. The City Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 95  Packet Pg. 333 of 1138  5 will direct employee requests to cancel or change deductions to the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. Section 2. Certification of Association Membership. The Association agrees to provide the City a certified list of members and statement that the Association has and will maintain written authorizations signed by the individuals from whose wages the Association dues deductions are to be made. The Association will update the list whenever there are changes. Section 3. Indemnification. The Association shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article. The Association shall comply with all statutory and legal requirements with respect to this article. ARTICLE IV - NO STRIKES Section 1. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Association, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE V - SALARY PROVISIONS Section 1. Salary Range Adjustments. The base wage rates of the bargaining unit classifications will be set forth in Appendix A of this MOA. a) General Salary Increase: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA, the salary ranges of all represented classifications will be increased by three percent (3.0%). b) Market Adjustment: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA, the salary ranges of all represented classifications will be increased by one and one half percent (1.5%). The 40hr training Battalion Chief position will be increased by an additional half percent (0.5%). Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 96  Packet Pg. 334 of 1138  6 c) General Salary Increase: Effective the first full pay period following July 1, 2026, the salary ranges of all represented classifications will be increased by three percent (3.0%). d) Market Adjustment: Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will receive a market adjustment of two percent (2.0%). e) General Salary Increase: Effective the first full pay period following July 1, 2027, the salary ranges of all represented classifications will be increased by three percent (3.0%). f) Total Compensation and Survey Database: Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. Section 2. EMT Differential. The former EMT differential of 3.0% was rolled into base pay. This one time conversion to base pay, shall constitute the City’s incentive payment for EMT skills. This conversion was cost neutral to the City. Section 3. 40-hour Work Week Assignment Differential. Employees assigned to a 40-hour workweek schedule will be paid a differential of five percent (5%) of base salary in-lieu of holiday pay differential which 56-hour shift Battalion Chiefs receive. Section 4. Out of County Strike Team Pay. A Battalion Chief sent on out of County strike team duty will receive the following compensation only if the City is reimbursed from the state or federal government for the labor costs incurred by the City. Compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity, excluding reimbursements for other labor costs (e.g. workers compensation, administrative expense, etc.). A Battalion Chief on their regular duty shift deployed on an out of County strike team will be eligible for compensation at their normal hourly rate (1.0 hourly rate), assuming a regular 56 hour schedule. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 97  Packet Pg. 335 of 1138  7 A Battalion Chief on non-regular duty shift days deployed on an out of County strike team will be eligible for compensation at a rate of 1.5 of their normal hourly rate. For 40 hour Battalion Chiefs deployed on an out of County strike team, any out of County strike team compensation will be calculated at a 56 hour Battalion Chief Schedule hourly rate. Payment for out of county strike team duty will be calculated based on the number of twenty- four hour shifts worked and prorated for any partial shifts. A Personnel Action Form will be completed in a timely manner to process this payment. The amount of the payment will be calculated in a manner described above. If the City is not reimbursed, no payment is due to the employee. If the City is reimbursed in part, a prorated payment will be calculated based on the reimbursement rate. As outlined above, compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity. ARTICLE VI – HOLIDAYS Section 1. Named Holidays. Holiday pay is compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduling staff without regard to holidays. The following holidays are recognized as municipal holidays for pay purposes. Regular, employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veterans’ Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4 Either December 24, or December 31 First Monday in September Second Monday in October Section 2. Day of Reflection. In addition to the paid holidays listed above, employees shall be excused with pay for one full work shift as a day of reflection (floating holiday) per calendar year, Employees may use the floating holiday on any day mutually agreed by the employee and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day (June 19) or Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by the end of the calendar year will be forfeited and have no cash value. Section 3. 56-Hour Work Week Assignments. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. One hundred sixty one and one half (161.5) hours are paid annually to an employee at a rate of 6.21 hours each pay period. Such paid hours will be paid 6.21 hours of in lieu of holiday pay each pay period. Hours are prorated and accrue based on hours worked. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 98  Packet Pg. 336 of 1138  8 Section 4. 40-Hour Work Week Assignments. Employees assigned to a 40-hour workweek schedule receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. ARTICLE VII - VACATION ACCRUAL Section 1. Vacation is accrued when an employee is in a pay status and is credited on a bi-weekly basis. Such accrual balance and credit may not exceed three times the annual rate of accrual. Accrual rates by work week assignments are indicated in Section 2 and Section 3 below. Section 2. 56-Hour Workweek Assignments. Employees assigned to a 56-hour workweek schedule (24- hour shift) accrue vacation at the following rates: a) For employees having completed less than four (4) years continuous service, the accrual rate shall be five (5) duty shifts per year. b) For employees having completed four (4), but less than nine (9) years continuous service, the accrual rate shall be eight (8) duty shifts per year. c) For employees having completed nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be ten (10) duty shifts per year. d) For employees having completed fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be eleven (11) duty shifts per year. e) For employees having completed nineteen (19) or more years continuous service, the accrual rate shall be twelve (12) duty shifts per year. Section 3. 40-Hour Workweek Assignments. Personnel assigned to a 40-hour workweek schedule accrue vacation at the following rates: a) For employees having completed less than four (4) years continuous service, the accrual rate shall be eighty (80) hours per year. b) For employees having completed four (4), but less than nine (9) years continuous service, the accrual rate shall be one-hundred twenty (120) hours per year. c) For employees having completed nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be one-hundred sixty (160) hours per year. d) For employees having completed fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be one-hundred eighty (180) hours vacation leave per year. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 99  Packet Pg. 337 of 1138  9 e) For employees having completed nineteen (19) or more years continuous service, the accrual rate shall be two- hundred (200) hours vacation leave per year. ARTICLE VIII - VACATION CASH OUT Section 1. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 2. Cash out Option. a) Once each calendar year, employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. b) Employee must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. For the 2012 calendar vacation year, employees will make their election for vacation hours to cash out no later than November 1, 2012. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. c) The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre-designates on the election form. d) Employees who do not elect a cash-out amount by November of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. e) Employees who elect cash-out amount may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out form upon request, provided the requested cash-out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of year, Payroll will automatically cash- out the elected amount in a paycheck issued on or after the payroll date including November 1. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 100  Packet Pg. 338 of 1138  10 ARTICLE IX - MANAGEMENT ANNUAL LEAVE Section 1. Forty (40) hour non-shift employees not eligible for overtime shall be credited at the beginning of each calendar year with eighty (80) hours of annual leave. Fifty-six (56) hour shift employees shall be credited one hundred and twelve (112) hours of annual leave. Such leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash, or taken as deferred compensation. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the calendar year. At the end of the calendar year, unused management annual leave will be paid in cash, unless a different option as indicated above is elected by the employee. ARTICLE X - OTHER PAID LEAVES Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or direct primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 101  Packet Pg. 339 of 1138  11 Section 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as: wife husband son son-in-law daughter daughter-in-law father mother brother brother-in-law sister sister-in-law mother-in-law father-in-law step-father step-mother step-sister step-brother grandfather grandfather-in-law grandmother grandmother-in-law uncle aunt niece nephew registered domestic partner close relative residing in the household of the employee 56 hour shift employees may receive one shift with provision for approval of one additional shift for travel outside the area. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Shift employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach 48 hours of consecutive time off per incident of bereavement. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Employees assigned to a 40-hour work week may be granted by the Chief three (3) days of leave with pay in the event of death in the employee’s immediate family. Non-shift employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. Section 6. Subpoenas. Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. Section 7. Personal Business. Employees may use up to thirty (30) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of management. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 102  Packet Pg. 340 of 1138  12 ARTICLE XI - OTHER LEAVE PROVISIONS Section 1. Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physician's verification including diagnosis and medical work restriction. Section 2. Other Unpaid Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Requests for leaves without pay shall not be unreasonably denied. Approval of leave without pay must be in writing to be effective. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one (1) week may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve (12) months. Section 6. Absence Without Leave. Unauthorized leave of absence shall be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in discipline, including termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by their department head in the event of a death outside the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. Applicable law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM Section 1. The City of Palo Alto has established a Firefighter Voluntary Leave Program to provide FCA employees the opportunity to donate their accrued vacation time to assist fellow members of FCA either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. Section 2. In order to be eligible to receive donated leave, an employee must have a catastrophic Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 103  Packet Pg. 341 of 1138  13 illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). Section 3. A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: a) Voluntary b) Irrevocable c) Confidential, unless disclosure is required by law d) In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). e) The employee shall be required to exhaust all other types of leave to request donated leave f) It is understood that employees seeking or receiving leave under this program will apply for long- term disability benefits for which they may be eligible g) Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverage through the City h) If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required i) The maximum donated time a donee may receive is 12 months (if available). j) Applications to donate leave or receive leave under this Program are made to the Human Resources Department k) The tax treatment of donation or receipt of vacation under this section is governed by the IRS and not the City. Section 4. FCA members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). Section 5. The City reserves the right to modify or terminate this program at any time. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 104  Packet Pg. 342 of 1138  14 Section 6. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non-occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS POTENTIAL BATTALION CHIEF EXTRA SHIFT COVERAGE Battalion Chiefs who back fill for an operations shift (or shifts) for a 56-hour work week Battalion Chief will be provided additional compensation for the extra shift coverage, provided that the extra shift requires working hours beyond regularly scheduled hours. Extra Shift Coverage Eligibility • Extra shift coverage pay applies to the level of Battalion Chief only and is not intended as compensation for Battalion Chiefs to backfill a lower classification. • A minimum of eight (8) continuous hours of the extra shift coverage must be worked to be eligible for compensation. After the minimum of eight (8) continuous hours is met, the Battalion Chief will be paid for the entire shift worked. Extra Shift Coverage Pay Rate • Compensation for the extra shift coverage by a 56-hour or 40-hour Battalion Chief will be paid at one and one-half times (1.5x) the 56-hour straight-time rate of the Battalion Chief performing the back fill. First Rights of Refusal • Battalion Chiefs shall be provided first rights of refusal for the extra shift coverage. If no Battalion Chiefs are available to back fill the extra coverage shift, the shift will be assigned to fire personnel at a lower classification in accordance with the standard protocols of the department. Extra Shift Coverage Pay Not PERSable • All pay under this extra shift coverage provision will be reported to CALPERS by the City of Palo Alto in a manner that excludes such pay from PERSable income. As such, the extra shift coverage pay is not subject to CALPERS contributions by the employer or employee and is not included as a factor in the employee’s final compensation for pension purposes. Fire Chief Discretion • In accordance with management rights provisions, the Fire Chief maintains discretion to approve, modify or disapprove extra shift coverage assignments. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 105  Packet Pg. 343 of 1138  15 FLSA Exempt Status • Nothing in the extra shift coverage provision is intended to impact the FLSA-exempt status of Battalion Chiefs. Battalion Chiefs remain FLSA-exempt and are therefore not eligible for overtime pay or compensatory time. ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT Section 1. The benefit provided by this Article is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 that they can designate among the following options: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as specified in applicable federal law. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the limits specified in applicable federal law. 1) Dependent care expenses not reimbursed under this section may be eligible for reimbursement under the City Voluntary Dependent Care FSA program. However, the maximum amount reimbursed under the Voluntary Dependent Care FSA program will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Professional Development Employees may use these funds for professional development purposes on a taxable basis to the extent such expenses (e.g., job-related training and education, seminars, training manuals, etc.) are not paid or reimbursed under any other plan of the City. d) Deferred Compensation. Provides a one-time contribution to the employee’s City- sponsored I.R.C. § 457 Deferred Compensation plan with either ICMA-RE or Mass Mutual, subject to the contribution limitations of applicable law. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Professional Development options are done so on a “use –it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees who are part-time or who are in FCA pay status for less than the full fiscal year. Such benefits Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 106  Packet Pg. 344 of 1138  16 will be pro-rated in the first year of employment (based on hire date) but will not be pro- rated upon separation of employment. ARTICLE XV - PHYSICAL EXAMS Physical fitness medical examinations for all represented employees will be provided in accordance with the Fire Department Physical Fitness Program General Order. ARTICLE XVI - BENEFIT PROGRAMS Section 1. Health Plan - ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be the following for any plan: Medical Premium Category Contribution* Contribution (inclusive of PEMHCA contribution) effective July 1, 2025 Employee Only $151.00 $943 Employee plus one $151.00 $1885 Employee Family $151.00 $2444 Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the following percentages: • Employee only: 2% • Employee plus one: 3% • Employee family: 5% Medical Premium Category Contribution* Contribution (inclusive of PEMHCA contribution) effective January 1, 2027 Employee Only $151.00 $962 Employee plus one $151.00 $1942 Employee Family $151.00 $2566 Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 107  Packet Pg. 345 of 1138  17 Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by 4%. Medical Premium Category Contribution* Contribution (inclusive of PEMHCA contribution) effective January 1, 2028 Employee Only $151.00 $1000 Employee plus one $151.00 $2020 Employee Family $151.00 $2669 *Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the Total Maximum City Contribution described above. The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. a. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. Flexible Compensaiton: Effective the first pay period following Council adoption of the MOU, in lieu of additional increases to the City’s medical premiums, hourly wages for all bargaining unit classifications will be increased by $100 per month ($1,200 per year). Employees can utilize this cash payment for any purpose, including to cover health insurance premiums or contribute to flexible spending accounts/457 deferred compensation plans. Effective the first full pay period of Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 108  Packet Pg. 346 of 1138  18 January 2024, hourly wages for all bargaining unit classifications will be increased by an additional $100 per month. Section 2. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. Section 3 Dental Benefits a. Level of Benefits: The City will maintain the present level of benefits on the City- sponsored dental program. The City provides a base dental plan for all eligible employees and dependents. Eligible employees may enroll in a dental buy-up plan. b. Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled for coverage under the base dental plan. Section 4. Vision Care. a) Level of Benefits: The City provides a base vision plan for all eligible employees and dependents. Eligible employees may enroll in a vision buy-up plan. b) Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees are responsible for premium payments required to enroll in the buy-up vision plan. Section 5. Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online. Section 6. Alternative Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any other non-City of Palo Alto employer sponsored or association- sponsored group medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical plan insurance and receive cash payments in the amount of two hundred eighty-four dollars ($284) for each month City coverage is waived. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 109  Packet Pg. 347 of 1138  19 ARTICLE XVII – RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to FCA employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. ARTICLE XIII – BASIC LIFE INSURANCE The City shall provide a basic life and AD & D insurance plan in an amount equal to the employee's annual base compensation (rounded to the next highest $1,000). ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage. The total amount of life insurance available to the employee is $325,000 and the total amount of AD&D coverage available is $325,000. ARTICLE XX– LONG TERM DISABILITY INSURANCE Employees may elect to enroll in the City’s Long Term Disability Insurance program. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 110  Packet Pg. 348 of 1138  20 ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, life insurance and long term disability plans if these benefits are elected. ARTICLE XXII-WORKERS’ COMPENSATION Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status and ability to return to full or restricted work status. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXIII- RETIREMENT PENSION PLANS Section 1. Safety PERS Retirement Formula. a. Safety Pension Group A: 3%@50 Safety Retirement: The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at Section 2. 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). b. Safety Pension Group B: 3%@55 Safety Retirement: Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (after referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). c. Safety Pension Group C: 2.7% at Age 57 Safety Retirement: Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. d. Safety PERS Member Contribution. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 111  Packet Pg. 349 of 1138  21 1. Employees in all classifications in Pension Groups A and B described above shall pay a total of 9% towards the PERS member contributions by payroll deduction. 2. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. 3. When employees pay their PERS Member Contribution pursuant to section 2a and 2b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). e. Additional Employee PERS contributions: In addition to the PERS member contribution as required under section 2d 1, 2 and 3 above, all employees in pension groups a, b and c shall contribute the additional following contributions: 1. All employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, shall pay an additional 3% towards the Employer share of Pension regardless of pension formula through a CalPERS 20516 contract amendment. 2. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, pay an additional 1% towards the Employer share of Pension for a total of 4%. Section 2. Status Determination. An employee’s membership in and designation as Safety for CalPERS pension plan purposes shall be determined based on applicable California law. Section 3. Employer Contributions to 457 Plan Effective the later of July 1, 2025 or the adoption of the MOA, the City will contribute $300 monthly to the 457 plan of each represented employee. Effective July 1, 2026 the City will contribute $600 monthly to the 457 plan of each represented employee. Eligibility: 1. Employees must be enrolled in an eligible City sponsored 457 plan 2. Employees who reach the maximum as defined by the IRS will not receive additional contributions 3. Employee must be making PERS contributions Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 112  Packet Pg. 350 of 1138  22 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES Section 1. Station House Fund. The Station House Fund per year per shift employee shall be $100.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with the following non-food house fund items: TV purchase and repair. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the Station House Fund. Section 3. Per Diem Travel Expenses For City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. Section 4. Parking. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994 may initially receive a parking permit for another downtown lot subject to availability of space at the Civic Center garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. Section 5. Uniform. The value of the purchase, rental and/or maintenance of the required uniforms shall be reported as special compensation to the extent legally permissible, pursuant to Title 2 CCR, Section 571(a)(5) as Uniform Allowance. Based upon existing uniform standards and the City’s cost experience, the value of this benefit shall be reported as $15.31 per pay period. The City will supply complete uniforms as described in Fire Department Policy 1031. ARTICLE XXV – WORK ASSIGNMENTS Section 1. Selection of and assignment to Training Battalion Chief (40-hour workweek) shall be based upon seniority, except where operational needs are determined by the Fire Chief or designee, the Fire Chief or designee reserves the right to assign personnel based on Fire Department needs. For purposes of this article, seniority shall be calculated from date of entry into the Battalion Chief classification. Section 2. Working out of Classification. Where employees, on a temporary basis, are assigned to perform all significant duties of a higher classification, for a period of one week or more, the Fire Chief may authorize payment within the range of the higher classification for the specified time frame. Working above classification will not exceed six months, unless renewed at the discretion of the Fire Chief. Working above classification pay is not to exceed 10% more than the employee’s current salary and shall be documented on a Personnel Action Form, with a description of the additional duties in the higher classification to be performed and an end date. Employees assigned to work out of classification will receive out of class pay beginning the first day of the assignment. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 113  Packet Pg. 351 of 1138  23 ARTICLE XXVI - FULL UNDERSTANDING Section 1. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Severability. If any of the provision herein contained be rendered or declared invalid by reason of any State or Federal legislation, or by ruling of any court of competent jurisdiction, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 3. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement be administered and observed in good faith. Section 4. Nothing in this Memorandum of Agreement shall preclude the parties from mutually agreeing to meet and confer on any subject with the scope of representation during the term of this agreement. Section 5. Merit System Rules and Regulations During the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XXVII - DURATION This Memorandum of Agreement shall become effective upon signing by the parties hereto, except that those provisions herein that have specific effective dates shall take effect on those dates regardless of signing date, once this Memorandum of Agreement is signed by the parties hereto. This Memorandum of Agreement shall expire June 30, 2028. ARTICLE XXVIII- 48/96 WORK SCHEDULE The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire department policy 205.6 typical workday and 1009.8.1 reporting for Duty-Holidays. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 114  Packet Pg. 352 of 1138  24 EXECUTED: FOR: FOR: FIRE CHIEFS ASSOCIATION CITY OF PALO ALTO Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 115  Packet Pg. 353 of 1138  APPENDIX A [Salary Schedule Attachment B] Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 116  Packet Pg. 354 of 1138  Memorandum of Agreement City of Palo Alto and Palo Alto Fire Chiefs’ Association July 1, 2025 – June 30, 2028 Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 117  Packet Pg. 355 of 1138  1 MEMORANDUM OF AGREEMENT Table of Contents PREAMBLE ____________________________________________________________________________________ 4 ARTICLE I - RECOGNITION _______________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 ARTICLE II - NO DISCRIMINATION _________________________________________________________________ 4 SECTION 1. ___________________________________________________________________________________ 4 SECTION 2 ___________________________________________________________________________________ 4 ARTICLE III - PAYROLL DEDUCTIONS _______________________________________________________________ 4 SECTION 1 ___________________________________________________________________________________ 4 SECTION 2. CERTIFICATION OF UNION MEMBERSHIP _______________________________________________________ 5 SECTION 3. INDEMNIFICATION ______________________________________________________________________ 5 ARTICLE IV - NO STRIKES ________________________________________________________________________ 5 SECTION 1 ___________________________________________________________________________________ 5 ARTICLE V - SALARY PROVISIONS _________________________________________________________________ 5 SECTION 1. SALARY RANGE ADJUSTMENTS. _____________________________________________________________ 5 SECTION 2. EMT DIFFERENTIAL _____________________________________________________________________ 6 SECTION 3. 40-HOUR WORK WEEK ASSIGNMENT DIFFERENTIAL _______________________________________________ 6 SECTION 4. OUT OF COUNTY STRIKE TEAM PAY. _________________________________________________________ 6 ARTICLE VI – HOLIDAYS _________________________________________________________________________ 7 SECTION 1. NAMED HOLIDAYS. _____________________________________________________________________ 7 SECTION 2. DAY OF REFLECTION _____________________________________________________________________ 7 SECTION 3. 56-HOUR WORK WEEK ASSIGNMENTS. _______________________________________________________ 7 SECTION 4. 40-HOUR WORK WEEK ASSIGNMENTS. _______________________________________________________ 8 ARTICLE VII - VACATION ACCRUAL _________________________________________________________________ 8 SECTION 1. ___________________________________________________________________________________ 8 SECTION 2. 56-HOUR WORKWEEK ASSIGNMENTS ________________________________________________________ 8 SECTION 3. 40-HOUR WORKWEEK ASSIGNMENTS. ________________________________________________________ 8 ARTICLE VIII - VACATION CASH OUT _______________________________________________________________ 9 SECTION 1. LIMITATION ON USE. ____________________________________________________________________ 9 SECTION 2. CASH OUT OPTION. _____________________________________________________________________ 9 ARTICLE IX - MANAGEMENT ANNUAL LEAVE _______________________________________________________ 10 SECTION 1 __________________________________________________________________________________ 10 ARTICLE X - OTHER PAID LEAVES _________________________________________________________________ 10 SECTION 1. CITY MANAGER GRANTED LEAVES __________________________________________________________ 10 SECTION 2. COUNCIL GRANTED LEAVE _______________________________________________________________ 10 SECTION 3. EMPLOYEE'S TIME OFF TO VOTE ___________________________________________________________ 10 SECTION 4. LEAVES OF ABSENCE; DEATH IN IMMEDIATE FAMILY ______________________________________________ 11 Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 118  Packet Pg. 356 of 1138  2 SECTION 5. JURY DUTY; LEAVE OF ABSENCE ____________________________________________________________ 11 SECTION 6. SUBPOENAS _________________________________________________________________________ 11 ARTICLE XI - OTHER LEAVE PROVISIONS ___________________________________________________________ 12 SECTION 1. DISABILITY. __________________________________________________________________________ 12 SECTION 2. OTHER UNPAID LEAVES. _________________________________________________________________ 12 SECTION 3. ACCRUED VACATION CREDITS. _____________________________________________________________ 12 SECTION 4. APPROVAL OF DEPARTMENT HEAD. _________________________________________________________ 12 SECTION 5. APPROVAL BY CITY MANAGER _____________________________________________________________ 12 SECTION 6. ABSENCE WITHOUT LEAVE. _______________________________________________________________ 12 SECTION 7. LEAVE OF ABSENCE; DEATH OUTSIDE THE IMMEDIATE FAMILY. _______________________________________ 12 SECTION 8. MILITARY LEAVE OF ABSENCE. _____________________________________________________________ 12 ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM _________________________________________ 12 SECTION 1. __________________________________________________________________________________ 12 SECTION 2. __________________________________________________________________________________ 13 SECTION 3. __________________________________________________________________________________ 13 SECTION 4. __________________________________________________________________________________ 13 SECTION 5. __________________________________________________________________________________ 14 SECTION 6. __________________________________________________________________________________ 14 ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS _________________________________ 14 ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT ___________________________________________________ 15 SECTION 1. __________________________________________________________________________________ 15 ARTICLE XV - PHYSICAL EXAMS __________________________________________________________________ 16 ARTICLE XVI - BENEFIT PROGRAMS _______________________________________________________________ 16 SECTION 1. HEALTH PLAN - ACTIVE EMPLOYEES ______________________________________________________ 16 SECTION 2. DUAL COVERAGE. _____________________________________________________________________ 18 SECTION 3 DENTAL BENEFITS ______________________________________________________________________ 18 SECTION 4. VISION CARE. ________________________________________________________________________ 18 SECTION 5. EMPLOYEE ASSISTANCE PLAN _____________________________________________________________ 19 ARTICLE XVII – RETIREMENT MEDICAL PLAN _______________________________________________________ 19 SECTION 1. RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED BEFORE JANUARY 1, 2004: ______________________ 19 SECTION 2. 20-YEAR VESTING FOR RETIREE MEDICAL COVERAGE FOR UNIT EMPLOYEES HIRED ON OR AFTER JANUARY 1, 2004: _ 19 ARTICLE XIII – BASIC LIFE INSURANCE _____________________________________________________________ 20 ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE _____________________________________________________ 20 ARTICLE XX– LONG TERM DISABILITY INSURANCE ___________________________________________________ 20 ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES ____________________________ 20 ARTICLE XXII-WORKERS’ COMPENSATION _________________________________________________________ 20 ARTICLE XXIII- RETIREMENT PENSION PLANS _______________________________________________________ 20 SECTION 1. SAFETY PERS RETIREMENT FORMULA. _______________________________________________________ 20 SECTION 2. STATUS DETERMINATION ________________________________________________________________ 22 SECTION 3. EMPLOYER CONTRIBUTIONS TO 457 PLAN _____________________________________________________ 22 ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES ___________________________________ 22 SECTION 1. STATION HOUSE FUND. _________________________________________________________________ 22 Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 119  Packet Pg. 357 of 1138  3 SECTION 2. NON-FOOD HOUSE ITEMS _______________________________________________________________ 22 SECTION 3. PER DIEM TRAVEL EXPENSES FOR CITY BUSINESS ________________________________________________ 22 SECTION 4. PARKING ___________________________________________________________________________ 22 SECTION 5. UNIFORM. __________________________________________________________________________ 22 ARTICLE XXV – WORK ASSIGNMENTS _____________________________________________________________ 23 SECTION 1. __________________________________________________________________________________ 23 SECTION 2. WORKING OUT OF CLASSIFICATION __________________________________________________________ 23 ARTICLE XXVI - FULL UNDERSTANDING ____________________________________________________________ 23 SECTION 1 __________________________________________________________________________________ 23 SECTION 2. SEVERABILITY. ________________________________________________________________________ 23 SECTION 3. __________________________________________________________________________________ 23 SECTION 4. __________________________________________________________________________________ 23 SECTION 5. __________________________________________________________________________________ 23 ARTICLE XXVII - DURATION _____________________________________________________________________ 24 ARTICLE XXVIII- 48/96 WORK SCHEDULE __________________________________________________________ 24 APPENDIX A__________________________________________________________________________________ 26 Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 120  Packet Pg. 358 of 1138  4 CITY OF PALO ALTO AND PALO ALTO FIRE CHIEFS’ ASSOCIATION PREAMBLE This Memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the "City", and the Palo Alto Fire Chiefs’ Association, hereinafter referred as the "Association", has been prepared and entered into in accordance with Title I, Division 4, Chapter 10, Sections 3500-3510 of the California Government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I - RECOGNITION Section 1. The City recognizes the Association as the exclusive representative of an employee group consisting solely of the classifications of Battalion Chief 56-hour workweek, and Battalion Chief 40-hour workweek who are regularly employed by the City. ARTICLE II - NO DISCRIMINATION Section 1. The Association and the City hereby agree that there shall be no discrimination because of race, color, age, disability, sex, national origin, sexual orientation, political or religious affiliation or any other basis recognized by federal, state or local law under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or nonmembership in the Association, or participation in the lawful activities of the Association. Section 2. The Association and the City hereby agree to protect the rights of all employees to exercise their free choice to join the Association and to abide by the express provisions of applicable State and local laws. ARTICLE III - PAYROLL DEDUCTIONS Section 1. The City shall deduct Union Association membership dues assessments and insurances authorized by the Union Association. This will be accomplished by payroll deductions from the bi-weekly pay of member employees. The dues deduction must be authorized in writing by the employee on an Union authorization card. The Union Association will be the custodian of records for individual employee membership and dues deduction forms. The Union Association will maintain all authorizations for dues deduction, signed by the individual from whose salary or wages the deduction or reduction is to Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 121  Packet Pg. 359 of 1138  5 be made. The City will direct employee requests to cancel or change deductions to the Association. The City shall remit the deducted dues to the Association as soon as possible after deduction. Section 2. Certification of Union Association Membership. The Union Association agrees to provide the City an initial certified list of members and statement that the Association has and will maintain written authorizations signed by the individuals from whose wages the Union Association dues deductions are to be made. From that point forward the Union Association will update the list whenever there are changes. Section 3. Indemnification. The Union Association shall indemnify and hold the City harmless against any liability arising from any claims, demands, or other action relating to this article. The Union Association shall comply with all statutory and legal requirements with respect to this article. ARTICLE IV - NO STRIKES Section 1. The Association, its representatives, or members, shall not engage in or cause, instigate, encourage, sanction, or condone a strike, withholding of services, leave of absence abuse, work stoppage or work slowdown of any kind against the City of Palo Alto or its citizens by employees covered under this Agreement. No employee shall refuse to cross any picket line in the conduct of Fire Department business, nor shall the Association, its representatives or members discriminate in any way toward anyone who refuses to participate in a strike, or any of the job actions cited above. ARTICLE V - SALARY PROVISIONS Section 1. Salary Range Adjustments. The base wage rates of the bargaining unit classifications will be set forth in Appendix A of this MOA. a) General Salary Increase: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA, the salary ranges of all represented classifications will be increased by three percent (3.0%). b) Market Adjustment: Effective the first full pay period including following the later of July 1, 2025 or the adoption of the MOA, the salary ranges of all represented classifications will be increased by one and one half percent (1.5%). The 40hr training Battalion Chief position will be increased by an Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 122  Packet Pg. 360 of 1138  6 additional half percent (0.5%). receive a market adjustment of ten percent (10.0%) and an equity adjustment of one percent (1.0%) for a total of eleven (11%). c) General Salary Increase: Effective the first full pay period following July 1, 2026 2023, the salary ranges of all represented classifications will be increased by four three percent (4 3.0%). d) Market Adjustment part 2: Effective the first full pay period following January July 1, 2027 2024, the salary ranges of all represented classifications will receive a market adjustment of two percent (2.0%). e) General Salary Increase: Effective the first full pay period following July 1, 2027 2024, the salary ranges of all represented classifications will be increased by four three percent (4 3.0%). f) Total Compensation and Survey Database: Management and the Union have agreed to a compensation survey database structure. Survey Cities include: Alameda, Berkeley, Fremont, Hayward, Menlo Park Fire District, Milpitas, Mountain View, Redwood City, Pleasanton, San Jose, San Mateo, San Ramon Fire District, Santa Clara, Santa Clara County and South San Francisco. Compensation Criteria includes: top step salary, maximum longevity, maximum education, uniform allowance, EMT differential, Hazmat differential, deferred compensation, employee pick up of employer pension costs (Negative EPMC), and maximum City paid benefits (medical, dental, vision, life insurance, LTD, and EAP). The database is intended to provide one source of information concerning how the compensation paid to employees in bargaining unit job classifications compares to that paid by other employers. Section 2. EMT Differential. The former EMT differential of 3.0% was rolled into base pay. This one time conversion to base pay, shall constitute the City’s incentive payment for EMT skills. This conversion was cost neutral to the City. Section 3. 40-hour Work Week Assignment Differential. Employees assigned to a 40-hour workweek schedule will be paid a differential of five percent (5%) of base salary in-lieu of holiday pay differential which 56-hour shift Battalion Chiefs receive. Section 4. Out of County Strike Team Pay. A Battalion Chief sent on out of County strike team duty will receive the following compensation only if the City is reimbursed from the state or federal government for the labor costs incurred by the City. Compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity, excluding reimbursements for other labor costs (e.g. workers compensation, administrative expense, etc.). A Battalion Chief on their regular duty shift deployed on an out of County strike team will be Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 123  Packet Pg. 361 of 1138  7 eligible for compensation at their normal hourly rate (1.0 hourly rate), assuming a regular 56 hour schedule. A Battalion Chief on non-regular duty shift days deployed on an out of County strike team will be eligible for compensation at a rate of 1.5 of their normal hourly rate. For 40 hour Battalion Chiefs deployed on an out of County strike team, any out of County strike team compensation will be calculated at a 56 hour Battalion Chief Schedule hourly rate. Payment for out of county strike team duty will be calculated based on the number of twenty- four hour shifts worked and prorated for any partial shifts. A Personnel Action Form will be completed in a timely manner to process this payment. The amount of the payment will be calculated in a manner described above. If the City is not reimbursed, no payment is due to the employee. If the City is reimbursed in part, a prorated payment will be calculated based on the reimbursement rate. As outlined above, compensation to the employee will not exceed the rate for which the City is reimbursed by the State of California or other external entity. ARTICLE VI – HOLIDAYS Section 1. Named Holidays. Holiday pay is compensation for employees who are normally required to work on an approved holiday because they work in positions that require scheduling staff without regard to holidays. The following holidays are recognized as municipal holidays for pay purposes., and rRegular, employees shall have these days off with pay, except as otherwise provided in these rules: January 1 Veterans’ Day, November 11 Third Monday in January Thanksgiving Day Third Monday in February Day after Thanksgiving Day Last Monday in May December 25 July 4th Either December 24, or December 31 as provided below First Monday in September Second Monday in October Section 2. Day of Reflection. In addition to the paid holidays listed above, employees shall be excused with pay for one full work shift as a day of reflection (floating holiday) per calendar year, Employees may use the floating holiday on any day mutually agreed by the employee and their supervisor for a Day of Reflection, including: Juneteenth Freedom Day (June 19) or Cesar Chavez/Dolores Huerta Day (March 31). Day of Reflection not used by the end of the calendar year will be deemed forfeited and have no cash value. Section 3. 56-Hour Work Week Assignments. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. One hundred sixty one and one half (161.5) hours are Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 124  Packet Pg. 362 of 1138  8 paid annually to an employee at a rate of 6.21 hours each pay period. Shift personnel shall receive pay in lieu of taking paid leave for accrued holidays. Such paid hours will be paid 6.21 hours of in lieu of holiday pay each pay period. Hours are prorated and accrued based on hours actually worked. Section 4. 40-Hour Work Week Assignments. Employees assigned to a 40-hour workweek schedule will receive paid holidays in accordance with Sections 517 and 518 of the Merit System Rules and Regulations. ARTICLE VII - VACATION ACCRUAL Section 1. Vacation will be is accrued when an employee is in a pay status and will be is credited on a bi-weekly basis. Such accrual balance and credit may not exceed three times the annual rate of accrual. Accrual rates are by work week assignments as are indicated in Section 1 2 and Section 2 3 below. Section 2. 56-Hour Workweek Assignments. Employees assigned to a 56-hour workweek schedule (24- hour shift) will accrue vacation at the following rates: for continuous service performed in a pay status. a) For employees completing having completed less than four (4) years continuous service, the accrual rate shall be five (5) duty shifts per year. b) For employees completing having completed four (4), but less than nine (9) years continuous service, the accrual rate shall be eight (8) duty shifts per year. c) For employees completing having completed nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be ten (10) duty shifts per year. d) For employees completing having completed fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be eleven (11) duty shifts per year. e) For employees completing having completed nineteen (19) or more years continuous service, the accrual rate shall be twelve (12) duty shifts per year. Section 3. 40-Hour Workweek Assignments. Personnel assigned to a 40-hour workweek schedule will accrue vacation at the following rates: for continuous service performed in a pay status. a) For employees completing having completed less than four (4) years continuous service, the accrual rate shall be eighty (80) hours per year. b) For employees completing having completed four (4), but less than nine (9) years continuous service, the accrual rate shall be one-hundred twenty (120) hours per year. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 125  Packet Pg. 363 of 1138  9 c) For employees completing having completed nine (9), but less than fourteen (14) years continuous service, the accrual rate shall be one-hundred sixty (160) hours per year. d) For employees completing having completed fourteen (14), but less than nineteen (19) years continuous service, the accrual rate shall be one-hundred eighty (180) hours vacation leave per year. e) For employees completing having completed nineteen (19) or more years continuous service, the accrual rate shall be two- hundred (200) hours vacation leave per year. ARTICLE VIII - VACATION CASH OUT Section 1. Limitation on Use. Employees may not use more than three times their annual rate of accrual in any calendar year period provided, however, that the Chief may grant exceptions to this limitation. Section 2. Cash out Option. a) Once each calendar year, employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. b) Employee must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. For the 2012 calendar vacation year, employees will make their election for vacation hours to cash out no later than November 1, 2012. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. c) The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre-designates on the election form. d) Employees who do not elect a cash-out amount by November of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. e) Employees who elect cash-out amount may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out form upon request, provided the requested cash-out amount has accrued and is Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 126  Packet Pg. 364 of 1138  10 consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of year, Payroll will automatically cash- out the elected amount in a paycheck issued on or after the payroll date including November 1. ARTICLE IX - MANAGEMENT ANNUAL LEAVE Section 1. Forty (40) hour and fifty-six (56) hour workweek non-shift employees not eligible for overtime shall be credited at the beginning of each calendar year with eighty (80) hours of annual leave. Fifty-six (56) hour shift employees shall be credited (one hundred and twelve (112) hours of annual leave. for 56- hour assignments) which Such leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash, or taken as deferred compensation. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the calendar year. Unused balances as of At the end of the calendar year, unused management annual leave will be paid in cash, unless a different option as indicated above is elected by the employee. The Management Annual Leave accrual will be changed to an annual accrual rather than fiscal year. Effective July 1, 2012, employees will be credited with forty (40) hours of management annual leave to be used by December 31, 2012 or automatically will be cashed out. Effective January 1, 2012, and every January 1 thereafter, employees will be credited with eighty (80) hours of management annual leave (one hundred and twelve (112) for 56- hour assignments) to be used by December 31st or automatically will be cashed out. ARTICLE X - OTHER PAID LEAVES Section 1. City Manager Granted Leaves. The City Manager may grant a regular employee under his control a leave of absence with pay for a period not exceeding thirty calendar days for reasons he deems adequate and in the best interest of the City. Section 2. Council Granted Leave. The City Council may grant a regular employee a leave of absence with pay for a period not to exceed one year for reasons the Council considers adequate and in the best interest of the City. Section 3. Employee's Time Off to Vote. Time off with pay to vote at any general or direct Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 127  Packet Pg. 365 of 1138  11 primary election shall be granted as provided in the State of California Elections Code, and notice that an employee desires such time off shall be given in accordance with the provisions of said Code. Section 4. Leaves of Absence; Death in Immediate Family. Leave of absence with pay of one shift for 56-hour shift employees with provision for approval of one additional shift for travel outside the area may be granted an employee by the Chief in the event of death in the employee's immediate family, which is defined for purposes of this section as: wife husband son son-in-law daughter daughter-in-law father mother brother brother-in-law sister sister-in-law mother-in-law father-in-law step-father step-mother step-sister step-brother grandfather grandfather-in-law grandmother grandmother-in-law uncle aunt niece nephew registered domestic partner close relative residing in the household of the employee 56 hour shift employees may receive one shift with provision for approval of one additional shift for travel outside the area. Such leave shall be at full pay and shall not be charged against the employee's accrued vacation or sick leave. Shift employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach 48 hours of consecutive time off per incident of bereavement. Requests for leave in excess of two shifts shall be subject to the approval of the City Manager. Employees assigned to a 40-hour work week are eligible for leave of absence may be granted by the Chief with pay for three (3) days of leave with pay in the event of death in the employee’s immediate family which is defined above. Non-shift employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Section 5. Jury Duty; Leave of Absence. Employees required to report for jury duty shall be granted a leave of absence with pay from their assigned duties until released by the court, provided the employee remits to the City all fees received for such duties other than mileage or subsistence allowances within thirty days from the termination of his or her jury service. Section 6. Subpoenas. Employees required to answer subpoenas as a witness for the City of Palo Alto or for a plaintiff where the City of Palo Alto is a defendant shall not lose pay or benefits for work time lost to answer depositions or to appear in court. Section 7. Personal Business. Employees may use up to thirty (30) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 128  Packet Pg. 366 of 1138  12 the appropriate level of management. ARTICLE XI - OTHER LEAVE PROVISIONS Section 1. Disability. Leaves of absence without pay may be granted in cases of disability not covered by sick leave. Pregnancy will be considered as any other disability. Leaves of absence for disability are subject to physician's verification including diagnosis and medical work restriction. Section 2. Other Unpaid Leaves. Leaves of absence without pay may be granted in cases of personal emergency or when such absences would not be contrary to the best interest of the City. Requests for leaves without pay shall not be unreasonably denied. Approval of leave without pay must be in writing to be effective. Non-disability prenatal and/or postpartum leave is available under this provision, but such leave shall not begin more than six months prenatal nor extend more than six months postpartum. Section 3. Accrued Vacation Credits. During unpaid leaves of absence for disability or other reasons, the employee may elect to use accrued vacation credits. Requests for leaves without pay shall not be unreasonably denied. In order to avoid misunderstandings, all leaves without pay must be in writing to be effective. Section 4. Approval of Department Head. Leave of absence without pay for one week or less may be granted by the department head, depending on the merit of the individual case. Section 5. Approval by City Manager. Leave of absence without pay in excess of one week's duration may be granted by the City Manager on the merit of the case, but such leave shall not exceed twelve (12) months' duration. Section 6. Absence Without Leave. Unauthorized leave of absence shall be considered to be without pay, and reductions in the employee's pay shall be made accordingly. Unauthorized leave of absence may result in discipline, including termination of employment. Section 7. Leave of Absence; Death Outside the Immediate Family. Leave without pay may be granted a regular employee by his/her their department head in the event of a death outside to family members other than one of the immediate family, such leave to be granted in accordance with Section 2 and Section 4. Section 8. Military Leave of Absence. State Applicable law shall govern the granting of military leaves of absence and the rights of employees returning from such absence. ARTICLE XII - VOLUNTARY CATASTROPHIC LEAVE PROGRAM Section 1. The City of Palo Alto has established a Firefighter Voluntary Leave Program to Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 129  Packet Pg. 367 of 1138  13 provide FCA employees the opportunity to donate their accrued vacation time to assist fellow members of FCA either due to: (a) an employee’s own verifiable non-industrial catastrophic illness or injury (as defined herein) or (b) in order to care for a member of the employee’s immediate family (spouse, child, parent or registered domestic partner suffering from a verifiable catastrophic illness or injury) and have exhausted or will presently exhaust all of their paid leave. Section 2. In order to be eligible to receive donated leave, an employee must have a catastrophic illness or injury or an employee’s immediate family member must have a catastrophic illness or injury that requires the employee to provide full-time care for this family member. Care will be taken to emphasize the voluntary nature of the plan and to insure confidentiality of employee participants and medical conditions (where applicable). Section 3. A Firefighter Voluntary Leave Sharing Program has been established to accept donations of vacation in accordance with the Program’s guidelines. All donations shall be: a) Voluntary b) Irrevocable c) Confidential, unless disclosure is required by law d) In whole hour increments of at least four (4) hours, with the hours donated being converted to donee hours based on the donee’s salary rate (so that there will be no cost to the City due to salary differential). e) The employee shall be required to exhaust all other types of leave to request donated leave f) It is understood that employees seeking or receiving leave under this program will apply for long- term disability benefits for which they may be eligible g) Where any of the period during which an employee receives donated leave is designated as family leave under the California Family Rights Act (CFRA/Family Medical Leave Act (FMLA), the employee will be eligible for continuation of medical and other available benefits during that the family leave period (for up to 12 weeks), in accordance with the requirements of those laws. If the employee receiving donated leave is not eligible for CFRA/FMLA benefit continuation, or after the employee has exhausted the available CFRA/FMLA leave period, the employee will need to pay the premiums for continued medical and other available benefits if the employee chooses to continue such coverage through the City h) If the donation request is based on the need for an employee to care for an immediate family member, as defined above, the family member must require full-time care by the employee. Certification of this requirement by a health care professional is required i) The maximum donated time a donee may receive is 12 months (if available). j) Applications to donate leave or receive leave under this Program are made to the Human Resources Department k) The tax treatment of donation or receipt of vacation under this section is governed by the IRS and not the City. Section 4. FCA members interested in donating leave or in applying to receive donated leave shall complete forms provided by the Human Resources Department. If an applicant for leave is found Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 130  Packet Pg. 368 of 1138  14 to meet the criteria set forth herein, Human Resources will determine the availability of and (as applicable) allocation of donated paid leave. Payroll will be notified in writing of the number of hours to be deducted from each donating employee’s vacation balance and transferred to the donee employee(s). Section 5. The City reserves the right to modify or terminate this program at any time. Section 6. Catastrophic Illness or Injury (also referred to as “medical emergency” in Revenue Ruling 90-29 and Sections 801(c) and 812 of the Merit Rules and Regulations): A non-occupational medical condition of an employee that will require the prolonged absence of the employee from duty and which will result in a substantial loss of income to the employee because the employee will have exhausted all paid leave available apart from the Voluntary Employee Leave sharing Program. Non-disability postpartum leave as referenced in Merit Rule 801(b) shall not be considered a catastrophic illness or injury under this Policy. ARTICLE XIII - ADDITIONAL COMPENSATION FOR BC CLASSIFICATIONS POTENTIAL BATTALION CHIEF EXTRA SHIFT COVERAGE Battalion Chiefs who back fill for an operations shift (or shifts) for a 56-hour work week Battalion Chief will be provided additional compensation for the extra shift coverage, provided that the extra shift requires working hours beyond regularly scheduled hours. Extra Shift Coverage Eligibility • Extra shift coverage pay applies to the level of Battalion Chief only and is not intended as compensation for Battalion Chiefs to backfill a lower classification. • A minimum of eight (8) continuous hours of the extra shift coverage must be worked to be eligible for compensation. After the minimum of eight (8) continuous hours is met, the Battalion Chief will be paid for the entire shift worked. Extra Shift Coverage Pay Rate • Compensation for the extra shift coverage by a 56-hour or 40-hour Battalion Chief will be paid at one and one-half times (1.5x) the 56-hour straight-time rate of the Battalion Chief performing the back fill. First Rights of Refusal • Battalion Chiefs shall be provided first rights of refusal for the extra shift coverage. If no Battalion Chiefs are available to back fill the extra coverage shift, the shift will be assigned to fire personnel at a lower classification in accordance with the standard protocols of the department. Extra Shift Coverage Pay Not PERSable • All pay under this extra shift coverage provision will be reported to CALPERS by the City of Palo Alto in a manner that excludes such pay from PERSable income. As such, the extra shift coverage pay is not subject to CALPERS contributions by the Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 131  Packet Pg. 369 of 1138  15 employer or employee and is not included as a factor in the employee’s final compensation for pension purposes. Fire Chief Discretion • In accordance with management rights provisions, the Fire Chief maintains discretion to approve, modify or disapprove extra shift coverage assignments. FLSA Exempt Status • Nothing in the extra shift coverage provision is intended to impact the FLSA-exempt status of Battalion Chiefs. Battalion Chiefs remain FLSA-exempt and are therefore not eligible for overtime pay or compensatory time. ARTICLE XIV - EXCESS BENEFIT REIMBURSEMENT Section 1. The benefit provided by this Article is designed to meet the requirements of Section 125 of the Internal Revenue Code. Every calendar year, each employee will be provided with $2,500 that they can designate among the following options: a) Medical Flexible Spending Account (Medical FSA). Provides reimbursement for excess medical/dental/vision, or expenses that are incurred by employees and their dependents which are not covered or reimbursed by any other source, including existing City-sponsored plans. This includes prescribed medications and co-payments as specified in applicable federal law. b) Dependent Care Flexible Spending Account (Dependent Care FSA). Provides reimbursement for qualified dependent care expenses under the City's Dependent Care Assistance Program (DCAP), subject to the limits specified in applicable federal law. 1) Dependent care expenses not reimbursed under this section may be eligible for reimbursement under the City Voluntary Dependent Care FSA program. However, the maximum amount reimbursed under the Voluntary Dependent Care FSA program will be reduced by any amount reimbursed under the Excess Benefit Plan. c) Professional Development Employees may use these funds for professional development purposes on a taxable basis to the extent such expenses (e.g., job-related training and education, seminars, training manuals, etc.) are not paid or reimbursed under any other plan of the City. d) Deferred Compensation. Provides a one-time contribution to the employee’s City- sponsored I.R.C. § 457 Deferred Compensation plan with either ICMA-RE or Mass Mutual, subject to the contribution limitations of applicable law. Amounts designated by employees to either the Medical FSA, Dependent Care FSA, or Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 132  Packet Pg. 370 of 1138  16 Professional Development options are done so on a “use –it-or-lose-it” basis. This means that any amounts designated and not used by the end of the calendar year (or end of the extended grace period for the medical FSA) will be forfeited by the employee and returned to the plan. Specified amounts under this benefit will be applied on a pro-rata basis for employees who are part-time or who are in FCA pay status for less than the full fiscal year. Such benefits will be pro-rated in the first year of employment (based on hire date) but will not be pro- rated upon separation of employment. ARTICLE XV - PHYSICAL EXAMS Physical fitness medical examinations for all represented employees will be provided in accordance with the Fire Department Physical Fitness Program General Order. ARTICLE XVI - BENEFIT PROGRAMS Section 1. Health Plan - ACTIVE EMPLOYEES: During the term of this contract, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Medical Premium Category Contribution* Contribution (inclusive of PEMHCA contribution) effective January July 1, 2025 2023 Employee Only $151.00 $943 871 Employee plus one $151.00 $1885 1,742 Employee Family $151.00 $2444 2,260 Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the following percentages: • Employee only: 2% • Employee plus one: 3% • Employee family: 5% Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 133  Packet Pg. 371 of 1138  17 Medical Premium Category Contribution* Contribution (inclusive of PEMHCA contribution) Employee Only $151.00 $962 Employee plus one $151.00 $1942 Employee Family $151.00 $2566 Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by 4%. Medical Premium Category Contribution* Contribution (inclusive of PEMHCA contribution) Employee Only $151.00 $1000 Employee plus one $151.00 $2020 Employee Family $151.00 $2669 The City’s total maximum contribution towards medical premiums for eligible part time employees shall be prorated based on the number of hours per week the part-time employee is assigned to work. *Any increases to the PEMHCA minimum during the term of this contract will result in a corresponding decrease to the amount of the additional City contribution, so that the total maximum City contribution never exceeds the Total Maximum City Contribution described above. If the State of California or federal government requires the City to participate and contribute toward coverage under any medical plan outside of PEMHCA including but not limited to the Affordable Care Act, the City’s total liability for enrolled employees and retirees and their eligible family members shall not exceed what the City would have paid toward PEMHCA coverage in the absence of such state or federal plan. The parties will meet and confer over the impact of such change on matters within the scope of representation before implementing any change. a. Active employee domestic partners whose domestic partnership is registered with the State of California may add their domestic partner as a dependent to their elected health plan coverage if the domestic partner is registered with the Secretary of State. Active employee domestic partners whose domestic partnership is not registered with the State but who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for reimbursement of the actual monthly premium cost of an individual health plan, not to exceed 90% of the average monthly premium cost of individual coverage under the Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 134  Packet Pg. 372 of 1138  18 PEMHCA health plans in 2016. Effective with the first pay period including January 1, 2017, a stipend of two hundred eighty four ($284) per month toward the cost of an individual health plan will be provided. Evidence of premium payment will be required with request for reimbursement. Flexible Compensaiton: Effective the first pay period following Council adoption of the MOU, in lieu of additional increases to the City’s medical premiums, hourly wages for all bargaining unit classifications will be increased by $100 per month ($1,200 per year). Employees can utilize this cash payment for any purpose, including to cover health insurance premiums or contribute to flexible spending accounts/457 deferred compensation plans. Effective the first full pay period of January 2024, hourly wages for all bargaining unit classifications will be increased by an additional $100 per month. Section 2. Dual Coverage. When a City employee is married to another City employee each shall be covered only once (as an individual or as a spouse of the other City employee, but not both) and dependent children, if any, shall be covered only by one spouse. Section 3 Dental Benefits a. Level of Benefits: The City will maintain the present level of benefits on the City- sponsored dental program. Maximum benefits per calendar year shall be $2,000. The City provides a base dental plan for all eligible employees and dependents. Eligible employees may enroll in a dental buy-up plan. b. Premiums: The City shall pay all premium payments or equivalent self-insured program charges on behalf of employees and dependents who are eligible and enrolled for coverage under the base existing dental plan. Dependents will include domestic partners, as defined under Article XVII Section 3. c. Orthodontia Benefit Maximum. The City will provide a 50% of reasonable charges, $2,000 lifetime maximum orthodontic benefit for representation unit employees and their dependents. Section 4. Vision Care. The City offers vision care coverage for employees and dependents. Coverage is equivalent to $20 Deductible Plan A under the Vision Service Plan, with monthly premiums paid by the employer. Dependents include domestic partners, as defined under Article XVII Section 1. a) Level of Benefits: The City provides a base vision plan for all eligible employees and dependents. Eligible employees may enroll in a vision buy-up plan. b) Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees are responsible for premium payments required to enroll in the buy-up vision plan. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 135  Packet Pg. 373 of 1138  19 Section 5. Employee Assistance Plan. The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line 24 hours a day, seven days a week. Guidance is also available online. Section 6. Alternative Medical Benefit Program. If a regular employee and/or the employee’s dependent(s) are eligible for and elect to receive medical insurance through any other non-City of Palo Alto employer sponsored or association- sponsored group medical plan, the employee may choose to waive his/her right to the City of Palo Alto’s medical plan insurance and receive cash payments in the amount of two hundred eighty-four dollars ($284) for each month City coverage is waived. ARTICLE XVII – RETIREMENT MEDICAL PLAN Section 1. Retiree medical coverage for Unit employees hired before January 1, 2004: Monthly City-paid premium contributions for a retiree-selected PEMHCA optional plan will be made in accordance with the Public Employees' Medical and Hospital Care Act Resolution for employees that retire on or before December 31, 2006. Effective January 1, 2007 for an employee retiring on or after that date the City will pay up to the monthly medical premium for the 2nd most expensive plan offered to FCA employees among the existing array of plans. However, the City contribution for an employee hired before January 1, 2004 who retires on or after December 1, 2011 shall be the same contribution amount it makes for active City employees. Effective upon ratification and adoption of this Agreement, the City shall provide active unit employees who were hired before January 1, 2004 with a one-time opportunity to opt-in to retiree health benefits provided under California Government Code section 22893. Eligible employees who wish to exercise this option shall inform the Human Resources Department of their election in writing no later than 90 days following the ratification and adoption of this Agreement. Section 2. 20-Year Vesting for Retiree Medical Coverage for Unit Employees Hired On Or After January 1, 2004: The retiree health benefit provided in California Government Code section 22893 shall apply to all employees hired on or after January 1, 2004. Under this law, an employee is eligible to receive Fifty (50) percent of benefit after ten (10) years; each additional service credit year after Ten (10) years will increase employer credit by Five (5%) percent until Twenty (20) years is reached at which time employee is eligible for One Hundred (100%) percent of annuitant-only coverage and Ninety (90%) percent of the additional premium for dependents. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 136  Packet Pg. 374 of 1138  20 ARTICLE XIII – BASIC LIFE INSURANCE The City shall provide a basic life and AD & D insurance plan in an amount equal to the employee's annual base compensation (rounded to the next highest $1,000). ARTICLE XIX– SUPPLEMENTAL LIFE INSURANCE An employee may, at his/her cost, purchase additional life insurance and additional AD&D coverage. The total amount of life insurance available to the employee is $325,000 and the total amount of AD&D coverage available is $325,000. ARTICLE XX– LONG TERM DISABILITY INSURANCE In lieu of providing long-term disability insurance program to eligible employees, the City shall add $40.00 per month to the base salary of eligible employees. This $40.00 per month shall not be calculated into the labor market salary comparison. Employees may elect to enroll in the City’s Long Term Disability Insurance program. ARTICLE XXI - EFFECTIVE DATE OF BENEFIT COVERAGE FOR NEW EMPLOYEES For newly-hired regular employees coverage begins on the first day of the month following date of hire for the health plan, dental plan, vision care plan, life insurance and long term disability plans if these benefits are elected. ARTICLE XXII-WORKERS’ COMPENSATION Persons on disability will be required to appear or otherwise report at regular two-week intervals to the Fire Chief or designate to discuss his/her status and ability to return to full or restricted work status. This section is not meant to unreasonably restrict employee's activities so long as such activities are cleared by the treating physician, treating program or alternative treatment program is maintained and employee is available for full or restricted duty as soon as medical clearance can be received. ARTICLE XXIII- RETIREMENT PENSION PLANS Section 1. Safety PERS Retirement Formula. a. Safety Pension Group A: 3%@50 Safety Retirement: The City will continue the present benefits under the Public Employees' Retirement System (PERS) "3 percent at 50 (3%@50)" formula for employees hired before the effective date of the “3 percent at Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 137  Packet Pg. 375 of 1138  21 Section 2. 55” (3%@55) formula for new hires as described herein. The final year compensation for employees hired under the 3% at 50 formula will continue to be “Single highest year” or the highest average annual compensation earnable by the member during one (1) year of employment immediately preceding retirement or the one-year period otherwise designated by the member (Government Code section 20042). b. Safety Pension Group B: 3%@55 Safety Retirement: Effective December 7, 2012, the City amended its contract with CalPERS to provide employees hired on or after that date who are not “new members” of CalPERS, as defined in the Public Employees’ Pension Reform Act (after referred to as “classic” CalPERS members) with the CalPERS retirement formula three percent of final salary at age 55 (“3%@55”), with the final salary determination for such employees of “3 highest consecutive years” based on the highest average annual compensation earnable by the member during three (3) consecutive years of employment immediately preceding retirement or the three-year period otherwise designated by the member (Government Code section 20037). c. Safety Pension Group C: 2.7% at Age 57 Safety Retirement: Employees hired on or after January 1, 2013 meeting the definition of “new member” under the Public Employees’ Pension Reform Act (Gov’t. Code s. 7522 et seq.) shall be subject to all of the provisions of that law, including but not limited to the two point seven percent at age 57 (2.7%@57) retirement formula with a three year final compensation period. d. Safety PERS Member Contribution. 1. Employees in all classifications in Pension Groups A and B described above shall pay a total of 9% towards the PERS member contributions by payroll deduction. 2. Employees in all represented classes in Pension Group C described above shall pay the employee contribution required by the Public Employees’ Pension Reform Act, currently calculated at fifty percent (50%) of the normal cost. 3. When employees pay their PERS Member Contribution pursuant to section 2a and 2b above, the City will provide for member contributions to be made as allowed under provisions of IRS Code Section 414(h)(2). e. Additional Employee PERS contributions: In addition to the PERS member contribution as required under section 2d 1, 2 and 3 above, all employees in pension groups a, b and c shall contribute the additional following contributions: 1. All employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, shall pay an additional 3% towards the Employer share of Pension regardless of pension formula through a CalPERS 20516 contract amendment. 2. Effective the first full pay period following July 1, 2020, all employees regardless of pension formula in this unit shall, in addition to the Member Contribution required, Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 138  Packet Pg. 376 of 1138  22 pay an additional 1% towards the Employer share of Pension for a total of 4%. Section 2. Status Determination. An employee’s membership in and designation as Safety for CalPERS pension plan purposes shall be determined based on applicable California law. Section 3. Employer Contributions to 457 Plan Effective the later of July 1, 2025 or the adoption of the MOA first full pay period following July 1, 2020, the City will contribute $300 monthly the equivalent of 1% of the employee’s pensionable salary into the to the 457 plan of each represented employee. Effective July 1, 2026 the City will contribute $600 monthly to the 457 plan of each represented employee. Eligibility: 1. Employees must be enrolled in an eligible City sponsored 457 plan 2. Employees who reach the maximum as defined by the IRS will not receive additional contributions 3. Employee must be making PERS contributions ARTICLE XXIV - MISCELLANEOUS EMPLOYMENT-RELATED EXPENSES Section 1. Station House Fund. The Station House Fund per year per shift employee shall be $100.00. Section 2. Non-Food House Items. The City agrees to furnish and maintain each fire station with the following non-food house fund items: TV purchase and repair. Kitchen cooking utensils, small kitchen appliances and other specific items to be determined by mutual agreement of the parties will be purchased from the Station House Fund. Section 3. Per Diem Travel Expenses For City Business. Unless other mutually agreeable arrangements are made, representation unit employees who are required to travel away from the City on City business will receive travel expenses, according to City policies which are currently in effect. Section 4. Parking. Employees in represented classes assigned to Civic Center or adjacent work locations shall be entitled to free parking in the Civic Center Garage, or a commute incentive which will be subject to meet and confer. Employees hired after July 1, 1994 may initially receive a parking permit for another downtown lot subject to availability of space at the Civic Center garage. Light duty employees assigned to the Civic Center will receive Civic Center parking temporary permits for the duration of the light duty assignment. Section 5. Uniform. The value of the purchase, rental and/or maintenance of the required uniforms shall be reported as special compensation to the extent legally permissible, pursuant to Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 139  Packet Pg. 377 of 1138  23 Title 2 CCR, Section 571(a)(5) as Uniform Allowance. Based upon existing uniform standards and the City’s cost experience, the value of this benefit shall be reported as $15.31 per pay period. The City will supply complete uniforms as described in Fire Department Policy 1031. ARTICLE XXV – WORK ASSIGNMENTS Section 1. Selection of and assignment to Training Battalion Chief (40-hour workweek) shall be based upon seniority, except where operational needs are determined by the Fire Chief or designee, the Fire Chief or designee reserves the right to assign personnel based on Fire Department needs. For purposes of this article, seniority shall be calculated from date of entry into the Battalion Chief classification. Section 2. Working out of Classification. Where employees, on a temporary basis, are assigned to perform all significant duties of a higher classification, for a period of one week or more, the Fire Chief may authorize payment within the range of the higher classification for the specified time frame. Working above classification will not exceed six months, unless renewed at the discretion of the Fire Chief. Working above classification pay is not to exceed 10% more than the employee’s current salary and shall be documented on a Personnel Action Form, with a description of the additional duties in the higher classification to be performed and an end date. Employees assigned to work out of classification will receive out of class pay beginning the first day of the assignment. ARTICLE XXVI - FULL UNDERSTANDING Section 1. The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2. Severability. If any of the provision herein contained be rendered or declared invalid by reason of any State or Federal legislation, or by ruling of any court of competent jurisdiction, such invalidation of such part or portion of this Memorandum of Agreement shall not invalidate the remaining portions hereof, and they shall remain in full force and effect, insofar as such remaining portions are severable. Section 3. It is the intent of the parties that ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement be administered and observed in good faith. Section 4. Nothing in this Memorandum of Agreement shall preclude the parties from mutually agreeing to meet and confer on any subject with the scope of representation during the term of this agreement. Section 5. Merit System Rules and Regulations During the term of this Memorandum of Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 140  Packet Pg. 378 of 1138  24 Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XXVII - DURATION This Memorandum of Agreement shall become effective upon signing by the parties hereto, except that those provisions herein that have specific effective dates shall take effect on those dates regardless of signing date, once this Memorandum of Agreement is signed by the parties hereto. This Memorandum of Agreement shall expire June 30, 2028 2025. ARTICLE XXVIII- 48/96 WORK SCHEDULE The regular schedule for 56 hour personnel will be under a “48/96” model. With the adoption of this “48/96” schedule the parties agreed to revise Fire department policy 205.6 typical workday and 1009.8.1 reporting for Duty-Holidays. Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 141  Packet Pg. 379 of 1138  25 EXECUTED: FOR: FOR: FIRE CHIEFS ASSOCIATION CITY OF PALO ALTO Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 142  Packet Pg. 380 of 1138  APPENDIX A [Salary Schedule Attachment B] Item 8 Attachment B - MOA - FCA        Item 8: Staff Report Pg. 143  Packet Pg. 381 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 CITY OF PALO ALTO Memorandum of Agreement City of Palo Alto and Utilities Management and Professional Association of Palo Alto Effective dates: Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 144  Packet Pg. 382 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Table of Contents PREAMBLE .................................................................................................................................. 4 ARTICLE I – RECOGNITION .................................................................................................. 4 ARTICLE II – NO DISCRIMINATION .................................................................................... 4 ARTICLE III – PAYROLL DUES DEDUCTION .................................................................... 4 ARTICLE IV – WORK STOPPAGE AND LOCKOUTS ........................................................ 4 ARTICLE V – CITY RIGHT TO MANAGE ............................................................................ 4 ARTICLE VI – Compensation .................................................................................................... 5 Section 1 – Job Families and Salary Schedule ............................................................................ 5 Section 2 – Base Salary Increases ............................................................................................... 5 Section 3 – Market Based Adjustments ...................................................................................... 6 Section 4. Working Above Classification ................................................................................... 7 Section 5. Engineers in Responsible Charge .............................................................................. 7 Section 6. Standby Compensation .............................................................................................. 7 Section 7. Utility Cost Efficiency Incentive Pilot Program ........................................................ 7 ARTICLE VII – HEALTH BENEFITS ..................................................................................... 7 Section 1 – Group Insurance ....................................................................................................... 7 Article VIII – Deferred Compensation Match ......................................................................... 12 ARTICLE IX – LEAVES ........................................................................................................... 12 Section 1 – Sick Leave .............................................................................................................. 12 Section 2 – Management Annual Leave ................................................................................... 13 Section 3 – Vacation ................................................................................................................. 13 Section 4 – Bereavement .......................................................................................................... 14 Section 5 – All Other Leaves .................................................................................................... 14 Section 6 – Vacation Benefits for Deceased Employees .......................................................... 14 Section 7 – Voluntary Leave Program ...................................................................................... 14 ARTICLE X – WORKERS’ COMPENSATION .................................................................... 15 Section 1 – Employees unable to work due to occupational injury, illness or disease ............. 15 Section 2 – Temporary Disability ............................................................................................. 15 ARTICLE XI – RETIREMENT PENSION ............................................................................. 15 ARTICLE XII – MISCELLANEOUS ...................................................................................... 17 Section 1 – Reimbursement for Relocation Expense ................................................................ 17 Section 2 – Meal allowance ...................................................................................................... 17 Section 3 – Reduction in Workforce...................................................................................... 17 Section 4 - Contracting Out ...................................................................................................... 17 Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 145  Packet Pg. 383 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Section 5- Association Security ................................................................................................ 18 Section 6- Notification to the Association ................................................................................ 18 Section 7- Association Representative Access to Work Locations .......................................... 18 Section 8- Release Time ........................................................................................................... 18 Section 9- Personnel Files ......................................................................................................... 18 ARTICLE XIII – GRIEVANCE PROCEDURE ..................................................................... 18 Section 1 - General Provisions .................................................................................................. 18 Section 2 – Definitions.............................................................................................................. 18 Section 3 - Conduct of Grievance Procedure ............................................................................ 19 Section 4 - Grievance and Appeal Procedure ........................................................................... 19 ARTICLE XIV – FULL UNDERSTANDING ......................................................................... 21 Section 1 – Full Understanding................................................................................................. 21 Section 2 – Severability ............................................................................................................ 21 Section 3 – Good Faith ............................................................................................................. 21 Section 4 – Mid-Contract Negotiations .................................................................................... 21 Section 5 – Merit System .......................................................................................................... 21 ARTICLE XV-DURATION ...................................................................................................... 21 Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 146  Packet Pg. 384 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 PREAMBLE This memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the “City”, and the Utilities Management and Professional Association of Palo Alto (UMPAPA), hereinafter referred to as the “Association” or “UMPAPA”, has been prepared and entered into in accordance with Title I, Division 4, Sections Chapter 10, 3500-3510 of the California government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I – RECOGNITION The City recognizes the Association as the exclusive representative of employees occupying positions in the bargaining unit certified by the City in accordance with the decision of Arbitrator Kagel dated April 13, 2011. ARTICLE II – NO DISCRIMINATION The Association and the City hereby agree that there shall be no discrimination because of race, color, age, handicap, sex, national origin, sexual or gender orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Association, or participation in the lawful activities of the Association. ARTICLE III – PAYROLL DUES DEDUCTION The City shall deduct Association member dues, and any other mutually agreed upon payroll deduction from the bi-weekly pay of bargaining unit employees. The dues deduction must be authorized in writing by the employee on an authorization form acceptable to the City and to the Association. City shall remit the deducted dues to the Association as soon as possible after deduction. ARTICLE IV – WORK STOPPAGE AND LOCKOUTS The Association, its representatives or members shall not engage in, or cause, instigate, encourage, sanction or condone a work stoppage or sympathy work stoppage, withholding of services, leave of absence abuse or work slowdown of any kind against the City of Palo Alto or its citizens by its members during the term of this MOA. No Association member shall refuse to cross any picket line in the conduct of the Utility business, nor shall the Association, its representatives or members discriminate in any way towards anyone who refuses to participate in a work stoppage or any of the job actions cited above. The City agrees that it will not lock out Association members. ARTICLE V – CITY RIGHT TO MANAGE The City retains and reserves, without limitation, all powers, rights, authority, duties, and responsibilities to manage the City as stated in the City Merit Rules, Chapter 12, Section 1207(d). Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 147  Packet Pg. 385 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Nothing in this Agreement is to be interpreted as constituting a waiver of the City’s rights and responsibilities to manage the City and create and maintain programs and services that reflect its public's wishes. The intent of this MOA is to establish wages, working hours, and conditions of employment with the Association. ARTICLE VI – Compensation Section 1 – Job Families and Salary Schedule Effective the first full pay period following adoption of this Memorandum by Council, all salaries of covered classifications shall be as listed in Appendix A. Appendix A shall clearly outline benchmark classifications for future total compensation surveys and for the purposes of internal alignment of the Association job families and career paths. The parties agree to continue a jointly-staffed benchmark committee. All recommendations or research conducted by the committee will be included in the next bargaining process. Section 2 – Base Salary Increases a) General Salary Increase: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA 2023, salary ranges and salaries of all represented classifications will be increased by three four percent (4 3.0%). b) Market Adjustment: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA, salary ranges and salaries of all classifications in the Manager, Utilities Strategic Business Services (Admin) job family will be increased by seven tenths of a percent (0.7%). Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA the following classifications will receive targeted market adjustments in the amount of six percent (6.0%): • Principal Electrical Engineer • Manager, Electrical Engineering Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA the following classifications will receive targeted market adjustments in the amount of four percent (4.0%): • Principal WGW Engineer • Manager, WGW Engineering Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 148  Packet Pg. 386 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 c) General Salary Increase: Effective the first full pay period following July 1, 2026 2024 salary ranges and salaries of all represented classifications will be increased by three four percent (4 3.0%). d) General Salary Increase: Effective the first full pay period following July 1, 2027 salary ranges and salaries of all represented classifications will be increased by three percent (3.0%). e) Effective July 2023 the first pay period following Council adoption of the MOU, and in lieu of additional increases to the City’s medical premiums, hourly wages for all bargaining unit classifications will be increased by $100 per month ($1200 per year). Employees can utilize this cash payment for any purpose, including to cover health insurance premiums or contribute to flexible spending accounts/457 deferred compensation plans. f) Effective the first pay period of January 2024, all classifications will receive an additional one hundred dollars ($100) monthly flexible compensation payment built into base hourly rate of pay. Section 3 – Market Based Adjustments Within the Term of this Agreement, the City will conduct a total compensation study of UMPAPA Benchmarked positions based on the following agencies: Anaheim Burbank Mountain View Pacific Gas and Electric Sacramento MUD San Jose Sunnyvale The City’s total compensation study will include a geographic adjustment for agencies which are outside of the immediate region. Those agencies receiving a geographic adjustment are: Anaheim, Burbank, Long Beach, Sacramento MUD and Roseville. For the purposes of recruiting and retaining employees within the Utility market place, the parties will add to the survey universe data from Pacific Gas and Electric (PG&E) Bay Area region where data can be found. For the term of this agreement, where PG&E data cannot be verified or acquired the parties agree to include an above-median comparator for the purposes of calculating benchmarks. The City’s survey is intended to provide a single source of information regarding compensation paid to bargaining unit employees and its comparison to compensation paid by other entities. The survey data does not obligate the City or the Association to propose or agree to any market-based adjustments. The next total compensation study will be started 180 days prior to expiration of this agreement. Effective the first full pay period following the adoption of the MOA, salary ranges identified classifications will be increased in an amount sufficient to bring them to market as determined by the City’s market study. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 149  Packet Pg. 387 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Section 4. Working Above Classification Where covered employees, on a temporary basis, are assigned to perform all significant duties of a higher classification for a period of one pay period or more, the City Manager or designee may authorize payment within the range of the higher classification for the specified time frame. Working above classification will not exceed six months, unless renewed at the discretion of the City Manager or designee. On expiration of that timeframe, working above classification pay will cease and the employee will return to their former pay level. Working above classification pay is not to exceed 10% more than the employee’s current salary and shall be documented on a Personnel Action Form, with a description of the additional duties in the higher classification to be performed and an end date. Any disputes with the application of this provision shall be subject to Chapter 11 of the City’s Merit Rules. Section 5. Engineers in Responsible Charge Principal Engineers designated as engineers in responsible charge shall receive working above classification pay as defined in Section 4 above. Section 6. Standby Compensation Utility Operations Supervisors in WGW or Electric who are assigned to standby duty shall be compensated at the daily rate of two (2) hours at their base hourly salary on days the employee is assigned to be on standby duty. Section 7. Utility Cost Efficiency Incentive Pilot Program During the term of this agreement, the parties will meet in an attempt to develop a pilot for a Utility Cost Efficiency Incentive bonus program. The Pilot Program will be implemented only upon mutual agreement of the City and UMPAPA but will have the following general parameters: 1. The Parties must agree on measurable objectives/criteria focused on curbing controllable costs associated with rate increases, 2. If the agreed-upon on “measurable objectives/criteria” are met during the Pilot Program, the City would provide a onetime non-pensionable bonus in an amount agreed to by the parties. All covered employees who are active at the time of payment will be eligible if the objectives/criteria are met. 3. The Pilot Program will begin and end on dates mutually agreed by the parties. However, the pilot program will end with expiration of the current MOA between the parties unless the parties agree in writing to an extension of the program. The parties agree to continue the pilot program and its incentive pays for the term of the agreement. ARTICLE VII – HEALTH BENEFITS Section 1 – Group Insurance Except as otherwise set forth herein, the City will maintain the present level of benefits on all City- sponsored medical programs. a) Effective Date of Coverage For newly-hired regular employees coverage begins on the first day of the month following submission of new hire forms date of hire for the health plan, dental plan, vision care plan, long term disability and life insurance plans if these benefits are elected. Effective on the first of the calendar month falling sixty (60) Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 150  Packet Pg. 388 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 days after adoption of this MOA, City health premium contributions (medical, dental and vision) are will be prorated for part-time employees based on the number of hours per week the part-time employee is assigned to work. Until that time, part-time employees will remain subject to the practice in effect at adoption of this MOA. b) Active Employee Health Coverage During the term of this MOA, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be up to a maximum of the following for any plan: Category PEMHCA contribution*) Effective the later of July Jan 1, 2025 2021 or the adoption of the MOA. Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the following percentages: • Employee only: 2% • Employee plus one: 3% • Employee family: 5% Category PEMHCA contribution*) Effective January 1, 2027 or the adoption of the MOA. Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by four percent (4%). Category PEMHCA contribution*) Effective January 1, 2028 or the adoption of the MOA. *For the duration of this MOA if the PEHMCA Minimum charges increase they will be included in the City’s maximum contribution and will not result in an increase to the City’s maximum contribution rates. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 151  Packet Pg. 389 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 c) Coverage for Domestic Partners. 1. Domestic Partnership Registered with the California Secretary of State: Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. 2. Domestic Partner Not Registered with the California Secretary of State:; Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for a stipend of two hundred and eighty four dollars ($284) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for reimbursement. d) Alternative Medical Benefit Program If a regular employee and/or the employee’s dependent(s) are eligible for medical insurance through another employer-sponsored or association medical plan, the employee may opt for alternative medical insurance coverage through the other employer-sponsored or association plan and waives his/her their right to the City of Palo Alto’s medical insurance coverage for same individuals. Employees waiving City coverage may receive a stipend of $284 per month. e) Retiree Health Plan a. Employees Hired Prior to January 1, 2004 Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees' Medical and Hospital Care Act. The City's contribution for an employee hired before January 1, 2004 and whose retirement date is on or after May 1, 2011 shall be the same contribution amount it makes from time to time for active City employees. b. Post - 1/1/04 Hires Government Code section 22893 applies to those Unit members hired after January I, 2004, and provides that, upon retirement from the City an employee is eligible for 50% of the specified employer health premium contribution after ten (10) years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional service credit year increases the employer contribution percentage by 5% until, at twenty (20) years' service credit; the employee will be eligible upon retirement for 100% of the specified employer contribution and 90% of the contribution for their dependent coverage. The City of Palo Alto's health premium contribution for eligible post - 1/1/04 hires shall be the minimum contribution set by PERS under section Government Code section 22893. For employees hired prior to January 1, 2004 who wish to opt in to Government code section 22893, the City provided a 90 calendar day period, in which employees hired prior to January 1, 2004 will have the opportunity to opt in to Government code section 22893. For a 90 day period following adoption of this agreement by Council, the City will offer a one-time opt in to Government code section 22893 for employees hired prior to 12/1/2013. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 152  Packet Pg. 390 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 f) Dental Plan 1. The City shall pay covered plan charges on behalf of all eligible employees and dependents. Dependents include eligible domestic partners as defined in Section 1 subsection c of this Article VII, Health Benefits. 2. The City provides a base dental plan for all eligible employees and dependents. Eligible employees may enroll in a dental buy-up plan. The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled for coverage under the base dental plan. 2. The City’s Dental Plan provides the following: a. Maximum Benefits per Calendar Year- $2,000 per person b. Lifetime Maximum for Orthodontics- The City will pay up to $2,000.00 for orthodontia coverage (not included in annual dental maximum) c. Major Dental Services 50% UCR* d. Orthodontics 50% UCR* e. Basic Benefits (All other covered services) i) First Calendar Year of Eligibility 70% UCR* ii) Subsequent Calendar Years 70%-100% iii) *Usual, Customary, and Reasonable iv) For each dental plan member, the percentage of coverage for basic benefits will begin at 70% for the first calendar year of coverage and increase by 10% (up to a maximum of 100%) effective the first day of the next calendar year as long as the member utilizes the plan at least once during the current year. Per the Delta Dental contract effective October 1, 2005, if the member does not use the plan during the current year, the percentage of coverage for the next calendar year shall remain unchanged from the current year. v) If a dental plan member loses coverage under the plan, the applicable percentage of coverage for basic benefits provided during any future period of coverage will commence at 70% as if the dental plan member was a new enrollee. Examples of when a member might lose coverage under the plan include: • Employee goes on an unpaid leave of absence and elects not to pay the required dental premiums for his/her family’s coverage during the leave. • Employee elects to drop one or more covered dependents from the plan during an open enrollment period so that they might be covered on a spouse’s non-City of Palo Alto dental plan. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 153  Packet Pg. 391 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 g) Vision Care 1. Level of Benefits: The City provides a base vision plan for all eligible employees and dependents. Eligible employees may enroll in a vision buy-up plan. 2. Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees are responsible for premium payments required to enroll in the buy-up vision plan. 3. The City shall provide vision care coverage for employee and dependents. Coverage is administered by Vision Service Plan (VSP). The plan will provide an exam every 12 months; lenses every 24 months; frames every 24 months, all subject to a twenty dollar ($20) co- payment as defined in the Vision Services Benefits Plan A schedule. 3. Dependents include eligible domestic partners as defined in Section 1, Subsection c of this Article VII, Health Benefits. h) No dual coverage for dental and vision benefits. When a City employee is married to or has a registered domestic partner with the California Secretary of State with another City employee, each shall only be covered once. (as an individual or as a spouse of the other City employees, but not both) and dependent children, if any, shall be covered by only one spouse. i) Basic Life Insurance The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee’s annual basic pay (rounded to the next highest $1,000). j) Supplemental Life And AD&D Insurance An employee may, at his/her their cost, purchase additional life insurance and additional AD&D coverage equal to one- or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000. k) Long Term Disability Insurance The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of ten thousand dollars ($10,000) per month. The LTD plan will have a waiting period of sixty days, as provided by the applicable carrier agreement. The City shall pay the premium for the first six thousand dollars ($6,000) of base monthly salary. For employees whose base monthly salary exceeds six thousand dollars ($6,000), the employee shall pay the cost of the required premium based upon their monthly salary between six thousand dollars ($6,000) and fifteen thousand dollars ($15,000). Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 154  Packet Pg. 392 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 l) Employee Assistance Plan The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line twenty-four (24) hours a day, seven days a week. Guidance is also available online. Article VIII – Deferred Compensation Match Effective January 1, 2019 tThe City will match employee contributions into their City-approved 457 plans up to a maximum of $4000. No combination of Employee and Employer funds can exceed the IRS limits for City approved 457 plans. The table below is for illustrative purposes only: ARTICLE IX – LEAVES Section 1 – Sick Leave a) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi-weekly pay period for those employees working a forty-hour duty schedule. Those assigned work schedules, which are greater or lesser than forty hours will accrue sick leave at the ratio of their work schedule to forty hours. b) Employees may use up to twenty thirty (30) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management. c) Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and by Section 609 of the Merit Rules and Regulations. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. d) Employees that were hired before December 1, 1983 and who leave the municipal service in good standing, or who die while employed in good standing by the city, and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their basic hourly rate of pay at termination. Full sick leave accrual will be paid in the event of termination due to disability. See Merit System Rules and Regulations, Chapter 6, Section 609. e) Up to nine days of sSick leave per calendar year may be used for illness in the immediate family, including a registered domestic partner or other individuals required by law. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 155  Packet Pg. 393 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 f) Employees eligible, as specified above if hired before December 1, 1983, to be compensated for sick leave may annually convert sick leave hours in excess of 600 to cash or deferred compensation, according to the formula set forth above, up to a maximum of $2,000 per fiscal year. Section 2 – Management Annual Leave At the beginning of each calendar year designated exempt employees will be credited with 80 hours of management annual leave. This leave is granted in recognition of the extra hours exempt employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is taken under this provision, 10-hour shift workers will receive one shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal year; employees who have used more than the pro-rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the calendar year will be paid in cash unless a different option as indicated above is elected by the employee. Section 3 – Vacation Vacation will be is accrued when an employee is in pay status and will be credited on a bi-weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: a) Less than nine years. For employees completing less than nine years continuous service: 120 hours vacation leave per year; provided that: The City manager is authorized to adjust the annual vacation accrual of employees hired on or after July 1, 2001, to provide up to 40 additional hours (i.e., to a maximum annual accrual of 160 hours) for service with a prior employer. b) Nine, but less than fourteen years. For employees completing nine, but not more than fourteen years continuous service; 160 hours vacation per year. c) Fourteen, but less than nineteen years. For employees completing fourteen, but not more than nineteen years continuous service; 180 hours vacation leave per year. d) Nineteen or more years. For employees completing nineteen or more years continuous service; 200 hours vacation leave per year. e) Employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided the employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. Employees must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 156  Packet Pg. 394 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre- designated on the election form. Employees who do not elect a cash-out amount by December 31 of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. Employees who elect cash-out amounts may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out upon request, provided the requested cash-out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out request, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of each year, Payroll will automatically cash-out the elected amount, or the maximum available amount, in a paycheck issued on or after the payroll date including November 1. Section 4 – Bereavement Leave of absence with pay of three (3) days may be granted to an employee by the head of their his/her department in the event of death in the employee’s immediate family, which is defined for purposes of this section as: wife husband son son-in-law daughter daughter-in-law father mother brother brother-in-law sister adopted child sister-in-law mother-in-law father-in-law step-father step-mother step-sister step-brother grandfather grandfather-in-law grandmother grandmother-in-law uncle aunt niece nephew registered domestic partner close relative residing in the household of the employee Such leave shall be at full pay and shall not be charged against the employee’s accrued vacation or sick leave. Employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Requests for leave in excess of three five (5) days shall be subject to the approval of the City Manager or their designee. a Council-Appointed Officer for employees under his/her control. Section 5 – All Other Leaves For all other leaves of absence refer to Chapters 5 and 8 of the City’s Merit Rules and Regulations. Section 6 – Vacation Benefits for Deceased Employees An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to the employee's estate within thirty days. This proration will be computed at the last basic rate of pay. Section 7 – Voluntary Leave Program If permitted by agreement between the City and the Association, members of the Association may participate in the "Voluntary Leave Program" to assist in maintaining the pay of an employee who is Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 157  Packet Pg. 395 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- Association agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law). Section 8 Floating Holiday – Days of Historical Significance Employees will be provided one floating holiday each calendar year in acknowledgement of days of historical significance. The employee with prior approval from their supervisor can use this floating holiday at any time during the year. This holiday has no cash value and will expire if unused. ARTICLE X – WORKERS’ COMPENSATION Section 1 – Employees unable to work due to occupational injury, illness or disease Employees unable to work due to occupational injury, illness or disease will be required to report to management to discuss his/her their status and ability to return to work on restricted or unrestricted duty, subject to the limitations imposed by applicable law. This requirement is not meant to unreasonably restrict employee’s activities while off work due to such incapacity as long as such activities are cleared by the treating physician, treating program or alternative treatment program and the employee is available for restricted or unrestricted duty as soon as medical clearance can be received. Section 2 – Temporary Disability While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall be paid full base salary for a period not to exceed fifty-seven (57) calendar days (including Saturdays, Sundays and Holidays), unless hospitalized, in which case employees shall be paid full base salary for a period not to exceed sixty (60) days from date of injury. For any temporary disability continuing beyond the time limits set forth above, employees shall be paid two-thirds (66.66%) of their full base salary at the time of injury for the duration of such temporary disability in conformance with State law. During the period of temporary disability, an employee’s eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees and vacation and sick leave benefits shall continue to accrue. In case of temporary disability beyond the time limits set forth above, sick leave and vacation benefits shall not be accrued. ARTICLE XI – RETIREMENT PENSION a) Employees hired before July 17, 2010 1. Retirement formula. Effective pay period inclusive of 1/6/07, the City’s Public Employees’ Retirement System (PERS) benefits changed to the 2.7%@ 55 formula for non-safety members (from 2% @55). 2. Employee contributions. Employees under the 2.7%@55 retirement formula will pay the full eight percent (8%) employee contribution. 3. Final compensation. Final compensation for purposes of retirement shall be as set forth in the City’s contract with CalPERS, including, when applicable, the Government Code Section 20692 Optional Benefit. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 158  Packet Pg. 396 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 b) Employees hired on or after July 17, 2010. 1. Retirement formula. For miscellaneous employees hired on or after July 17, 2010, or on or after January 1, 2013 who are not subject to the pension formula in the Public Employees’ Pension Reform Act (PEPRA), the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60). 2. Employee contributions. Employees under the 2%@60 retirement formula will pay the full seven percent (7%) employee contribution. 3. Final compensation. Final compensation for purposes of retirement shall be as set forth in the City’s contract with CalPERS, including, when applicable, the Government Code Section 20692 Optional Benefit or as required by law. c) New Employees hired on or after January 1, 2013 Employees hired on or after January 1, 2013 who are “new members” as defined by the California Public Employees’ Pension Reform Act (PEPRA), will be subject to the terms of that statute including but not limited to the following provisions: 1. Retirement formula. Effective for employees hired on or after January 1, 2013, the PEPRA requires the City to provide new employees, as defined in that law, the CalPERS retirement formula two percent of final salary at age 62 (2%@62). 2. Employee contributions. Employees under the 2%@62 formula shall pay at least 50 percent of the total normal cost or the same contribution rate as “similarly situated” employees, whichever is higher. 3. Final compensation. Final compensation for employees under the 2%@62 benefit shall be as set forth in PEPRA, including calculation based on the average of three highest consecutive years and a cap on pensionable compensation (currently $136,440) based on IRS limits for employers that do not participate in social security. d) Effective as soon as administratively feasible but no sooner than the first full pay period of March 2019, bargaining unit employees shall contribute 1% of their salary toward the employer cost of retirement. Pensions Group Pension Formula Employer Side Contribution from 2.7@ 55 8% 1% 9% 2@60 7% 1% 8% 2@62 50% of the normal Cost (Currently 6.25%) 1% Will fluctuate (Currently 7.25%) Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 159  Packet Pg. 397 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 e) Employee CalPERS contributions tax deferred. Employee CalPERS contributions shall be made on a tax deferred basis, in accordance with Section 414(h)(2) of the Internal Revenue Code. All provisions of this subsection are subject to and conditioned upon compliance with IRS regulations. ARTICLE XII – MISCELLANEOUS Section 1 – Reimbursement for Relocation Expense The City of Palo Alto, in rare instances, may, provide a Basic Relocation Benefits Package for new employees, upon the approval of the City Manager or designated subordinate. In addition, the provision of “Optional Benefits”, or portions thereof, may be extended for exceptional circumstances and only by approval of the City Manager or designee. The details of the Relocation Expense program are specified in the City’s Relocation Expense policy. Section 2 – Meal allowance Employees assigned to attend night meetings or who travel for business purposes are eligible to receive reimbursement as described by City policy. This provision covers only receipted meals actually taken and submitted for reimbursement. Section 3 – Reduction in Workforce The City will make every effort to provide written notice of its intent to lay off employees in this unit and will meet with Association upon request to discuss alternatives to layoff. Section 4 - Contracting Out a. As provided in subsection b, the City shall provide notice of any planned action(s) that would result in the layoff of one or more Association bargaining unit members and where either of the following apply: 1. The planned City action(s) is to contract out work historically and exclusively performed by Association bargaining unit members; 2. The planned City action is to substantially increase the scope or amount of work historically but not exclusively performed by Association bargaining unit members (e.g. work shared with other City employees outside the Association bargaining unit or contractors). b. The City shall deliver written notice to the Association at least thirty (30) days before it implements any action(s) described in subsection a. Within seven (7) days after it receives such notice, the Association may deliver to the City’s Chief People Officer a written request to meet and discuss the effects of the City action(s). After the City’s receipt of such request, the parties will promptly meet and undertake discussions. The discussions will conclude no later than the thirtieth (30th) day following the Association’s receipt of the City’s notice of the planned action(s), as described above. Thereafter, the City may implement the action(s) without further discussion as originally planned or as modified as a result of such discussions. If the Association does not deliver timely notice of its desire to meet and discuss the effects of the action(s) identified in the City’s notice, the City may proceed with the planned action(s). c. The City retains its right to determine the methods, means, and personnel by which services are carried out at its sole discretion in circumstances no covered by subsection a above. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 160  Packet Pg. 398 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Section 5- Association Security a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Association and give the employee a current copy of the Memorandum of Agreement. b) Members of the Association Board may use a reasonable amount of on-duty time without loss of pay to meet with the City specifically related to representation of employees. For purposes of this section, representation shall include: (i) Meetings with represented employees or the City related to a grievance or disciplinary action, including investigation and preparation time. (ii) Any meeting with the City related to benefits, working conditions or other terms and conditions of employment. Section 6- Notification to the Association The Association shall be informed in advance in writing by the City before any proposed changes not covered by this Memorandum of Agreement are made in benefits, working conditions, or other terms and conditions of employment which require meet and confer or meet and consult process. Section 7- Association Representative Access to Work Locations Employee and nonemployee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum of Agreement, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs. Section 8- Release Time The Association Chair, Vice-Chair or his/her their designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary Section 9- Personnel Files Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date any all action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Association representatives. An employee shall be allowed, copies of materials in their an employee's personnel file. ARTICLE XIII – GRIEVANCE PROCEDURE Section 1 - General Provisions The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of Association grievances as provided for below. In presenting a grievance the aggrieved and/or his/her their representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Section 2 – Definitions Grievance means an unresolved complaint or dispute regarding the interpretation or application of this Memorandum of Agreement, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 161  Packet Pg. 399 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 not being subject to the grievance. Section 3 - Conduct of Grievance Procedure a) An aggrieved employee may be represented by the Association or may represent himself/herself themselves in preparing and presenting a grievance at any level of review. No grievance settlement may be made in violation of an existing merit rule or memorandum of agreement. b) An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance. Requests for release time to prepare grievances shall be made in advance and approved by the immediate supervisor. c) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Association and the reviewer concerned. d) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step. e) The grievance shall be considered settled if the decision of any step is not appealed within the specified time limit. f) Grievances shall be made in writing and submitted on forms provided by the City. The written grievance shall contain clear, factual and concise language, including: (1) the name of the grievant; (2) a statement of the facts upon which the grievance is based, including relevant dates, times and places; (3) specific provisions of this Agreement the grievant alleges has been violated; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance. g) Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance was filed in writing. h) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays. i) If a mutually agreed solution is reached during any step of this grievance procedure, the agreement shall be placed in writing and signed by the City and the grievant or Association. j) Upon request of either party, meetings to discuss the grievance shall be held at any step in the grievance procedure. Section 4 - Grievance and Appeal Procedure Step I. Informal Discussion Within fifteen (15) working days after the incident or discovery of the incident on which the grievance is based the aggrieved employee shall present the grievance action to his/her their immediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 162  Packet Pg. 400 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Step II. Formal Grievance If the grievance is not resolved through the informal discussion in Step 1 the employee will reduce the grievance to writing and submit copies to the Department head or his/her their designee within fifteen (15) working days of the discussion with the immediate. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance to review the matter and prepare a written statement. Step III. Human Resources Director If the grievance is not resolved and/or the aggrieved employee is not satisfied with the Step II decision, the grievant may appeal to the Human Resource Director or his/her their designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance, the Department Head’s decision at Step II, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step IV. City Manager /Arbitration If the grievance is not resolved at Step III, the aggrieved employee may choose between final and binding resolution of the grievance through appeal to the City Manager or through appeal to final and binding arbitration. For the term of this Memorandum of Agreement, appeals to final and binding arbitration may be processed only with Association approval. All Step IV appeals must be filed in writing at the Human Resources Department Office within fifteen (15) working days of receipt of the Human Resource Director’s decision at Step 3. If the grievant or appellant elects final and binding resolution by the City Manager, the City Manager will choose the methods he or she they considers appropriate to review and settle the grievance. The City Manager shall render a written decision to all parties directly involved within fifteen (15) working days after receiving the grievant/appellant’s appeal. If the grievant/appellant elects final and binding arbitration in accordance with this provision, the parties shall mutually select an arbitrator. In the event the parties cannot agree on an arbitrator, they shall mutually request a panel of five arbitrators from the California State Conciliation Service or from the American Arbitration Association if either party objects to the State Conciliation Service, and select an arbitrator by the alternate strike method. The arbitrator shall have jurisdiction and authority only to interpret, apply, or determine compliance with the provisions of this Memorandum of Agreement. The arbitrator shall be without power to make any decision contrary to, or inconsistent with or modifying in any way, the terms of this Memorandum Of Agreement. The arbitrator shall be without authority to require the City to delegate or relinquish any powers which by State law or City Charter the City cannot delegate or relinquish. Copies of the arbitrator's decision shall be submitted to the City, the aggrieved employee and the Association. All direct costs emanating from the arbitration procedure shall be paid in full by the party in which the decision was found against. ARTICLE XIV – PERFORMANCE EVALUATIONS Performance evaluations for represented employees shall be conducted in accordance with processes defined in the City’s Management and Professional Compensation Plan. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 163  Packet Pg. 401 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 ARTICLE XIV XV – FULL UNDERSTANDING Section 1 – Full Understanding The Memorandum of Agreement contains the full and entire understanding of the parties regarding the matters set forth herein. Section 2 – Severability If, at the conclusion of any applicable appeals, any provision of this Memorandum of Agreement is ultimately held invalid and unenforceable by a decision of the relevant Court or Administrative Agency of competent jurisdiction such holding shall apply only to the provision(s) of this Memorandum of Agreement specified in the decision. Such decision shall not invalidate any other portion of this Memorandum of Understanding, and the unaffected provisions shall remain in full force and effect. The Parties agree that within ten (10) days after the date of such decision, they shall meet and confer in an effort to negotiate a substitute for the invalidated provision(s). Section 3 – Good Faith Ordinances, resolutions, rules and regulations enacted pursuant to this Memorandum of Agreement that regulate matters within the scope of representation shall, to the extent they are within the scope of representation, be administered in good faith. Section 4 – Mid-Contract Negotiations Subjects within the scope of representation that are not covered by this Memorandum of Agreement remain subject to the duty to meet and confer in good faith on timely notice and request. Neither party is obligated to meet and confer over matters within the scope of representation covered by this Memorandum of Agreement, except for purposes of negotiating over the terms of a successor to this Memorandum of Agreement. Section 5 – Merit System Merit System Rules and Regulations, during the term of this Memorandum of Agreement, Management may propose certain changes in the City Merit System Rules and Regulations. With regard to such changes which pertain to the representation unit, the parties agree to review, and upon request, meet and confer regarding the changes. ARTICLE XVI - DURATION This Memorandum of Agreement shall become effective once the Memorandum of Agreement is signed by the parties hereto and adopted by the City Council. This Memorandum of Agreement shall remain in effect through June 30, 2028 2025. At the request of either party negotiation of a successor agreement shall commence, however they should begin no sooner than 6 months prior to expiration of this agreement and no later than 3 months prior to the expiration of this agreement. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 164  Packet Pg. 402 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 For the City: For the Association: __ ______ Ed Shikada, City Manager Aaron Perkins, Principal WGW Engineer __ ______ Sandra Blanch, Human Resources Director Jim Pachikara, Principal Electrical Engineer __ Tori Anthony, Manager Employee Relations Dave Yuan, Utilities Strategic Business Manager __ Ben Farnsworth, Sr HR Administrator Kevin Enderby, Principal Business Analyst __ _______________________________________ Sandhya Uthup, HR Representative Abel Silva, Supervisor WGW Operations _______________________________________ Alan Davis, UMPAPA Outside Counsel Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 165  Packet Pg. 403 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Appendix A Benchmark Classifications and Salary Schedule Division Classifications in Job Family Resource Planning Assistant Director, Utilities Resource Management Manager, Utilities Program Services Electric & Fiber Utilities Assistant Director, Electric and Fiber Optic Utilities Manager, Operations - Electric and Fiber Utilities Manager, Utilities Compliance Utilities Safety Officer Water, Gas Wastewater Utilities Assistant Director, Water-Gas-Wastewater (WGW) Utilities Manager, Operations - WGW Utilities Principal Engineer, WGW Utilities Operations Supervisor, Water-Gas-Wastewater (WGW) Utilities Customer Support Assistant Director, Utilities Customer Support Services Manager, Utilities Credit & Collection Admin Utilities Principal Business Analyst Utilities Management Analyst Manager, Utilities Public Communications Utilities Senior Business Analyst Utilities Senior Management Analyst Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 166  Packet Pg. 404 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 167  Packet Pg. 405 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 CITY OF PALO ALTO Memorandum of Agreement City of Palo Alto and Utilities Management and Professional Association of Palo Alto Effective dates: Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 168  Packet Pg. 406 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Table of Contents PREAMBLE .................................................................................................................................. 4 ARTICLE I – RECOGNITION .................................................................................................. 4 ARTICLE II – NO DISCRIMINATION .................................................................................... 4 ARTICLE III – PAYROLL DUES DEDUCTION .................................................................... 4 ARTICLE IV – WORK STOPPAGE AND LOCKOUTS ........................................................ 4 ARTICLE V – CITY RIGHT TO MANAGE ............................................................................ 4 ARTICLE VI – Compensation .................................................................................................... 5 Section 1 – Job Families and Salary Schedule ............................................................................ 5 Section 2 – Base Salary Increases ............................................................................................... 5 Section 3 – Market Based Adjustments ...................................................................................... 6 Section 4. Working Above Classification ................................................................................... 6 Section 5. Engineers in Responsible Charge .............................................................................. 7 Section 6. Standby Compensation .............................................................................................. 7 Section 7. Utility Cost Efficiency Incentive Pilot Program ........................................................ 7 ARTICLE VII – HEALTH BENEFITS ..................................................................................... 7 Section 1 – Group Insurance ....................................................................................................... 7 Article VIII – Deferred Compensation Match ......................................................................... 10 ARTICLE IX – LEAVES ........................................................................................................... 11 Section 1 – Sick Leave .............................................................................................................. 11 Section 2 – Management Annual Leave ................................................................................... 11 Section 3 – Vacation ................................................................................................................. 12 Section 4 – Bereavement .......................................................................................................... 12 Section 5 – All Other Leaves .................................................................................................... 13 Section 6 – Vacation Benefits for Deceased Employees .......................................................... 13 Section 7 – Voluntary Leave Program ...................................................................................... 13 ARTICLE X – WORKERS’ COMPENSATION .................................................................... 13 Section 1 – Employees unable to work due to occupational injury, illness or disease ............. 13 Section 2 – Temporary Disability ............................................................................................. 14 ARTICLE XI – RETIREMENT PENSION ............................................................................. 14 ARTICLE XII – MISCELLANEOUS ...................................................................................... 15 Section 1 – Reimbursement for Relocation Expense ................................................................ 15 Section 2 – Meal allowance ...................................................................................................... 15 Section 3 – Reduction in Workforce...................................................................................... 15 Section 4 - Contracting Out ...................................................................................................... 16 Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 169  Packet Pg. 407 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Section 5- Association Security ................................................................................................ 16 Section 6- Notification to the Association ................................................................................ 16 Section 7- Association Representative Access to Work Locations .......................................... 17 Section 8- Release Time ........................................................................................................... 17 Section 9- Personnel Files ......................................................................................................... 17 ARTICLE XIII – GRIEVANCE PROCEDURE ..................................................................... 17 Section 1 - General Provisions .................................................................................................. 17 Section 2 – Definitions.............................................................................................................. 17 Section 3 - Conduct of Grievance Procedure ............................................................................ 17 Section 4 - Grievance and Appeal Procedure ........................................................................... 18 ARTICLE XIV – FULL UNDERSTANDING ......................................................................... 19 Section 1 – Full Understanding................................................................................................. 19 Section 2 – Severability ............................................................................................................ 19 Section 3 – Good Faith ............................................................................................................. 19 Section 4 – Mid-Contract Negotiations .................................................................................... 20 Section 5 – Merit System .......................................................................................................... 20 ARTICLE XV-DURATION ...................................................................................................... 20 Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 170  Packet Pg. 408 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 PREAMBLE This memorandum of Agreement between the City of Palo Alto, hereinafter referred to as the “City”, and the Utilities Management and Professional Association of Palo Alto (UMPAPA), hereinafter referred to as the “Association” or “UMPAPA”, has been prepared and entered into in accordance with Title I, Division 4, Sections Chapter 10, 3500-3510 of the California government Code and Chapter 12 of the City of Palo Alto Merit System Rules and Regulations. ARTICLE I – RECOGNITION The City recognizes the Association as the exclusive representative of employees occupying positions in the bargaining unit certified by the City in accordance with the decision of Arbitrator Kagel dated April 13, 2011. ARTICLE II – NO DISCRIMINATION The Association and the City hereby agree that there shall be no discrimination because of race, color, age, handicap, sex, national origin, sexual or gender orientation, political or religious affiliation under this Agreement. There shall be no discrimination in employment conditions or treatment of employees on the basis of membership or non-membership in the Association, or participation in the lawful activities of the Association. ARTICLE III – PAYROLL DUES DEDUCTION The City shall deduct Association member dues, and any other mutually agreed upon payroll deduction from the bi-weekly pay of bargaining unit employees. The dues deduction must be authorized in writing by the employee on an authorization form acceptable to the City and to the Association. City shall remit the deducted dues to the Association as soon as possible after deduction. ARTICLE IV – WORK STOPPAGE AND LOCKOUTS The Association, its representatives or members shall not engage in, cause, instigate, encourage, sanction or condone a work stoppage or sympathy work stoppage, withholding of services, leave of absence abuse or work slowdown of any kind against the City of Palo Alto or its citizens by its members during the term of this MOA. No Association member shall refuse to cross any picket line in the conduct of the Utility business, nor shall the Association, its representatives or members discriminate in any way towards anyone who refuses to participate in a work stoppage or any of the job actions cited above. The City agrees that it will not lock out Association members. ARTICLE V – CITY RIGHT TO MANAGE The City retains and reserves, without limitation, all powers, rights, authority, duties, and responsibilities to manage the City as stated in the City Merit Rules, Chapter 12, Section 1207(d). Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 171  Packet Pg. 409 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Nothing in this Agreement is to be interpreted as constituting a waiver of the City’s rights and responsibilities to manage the City and create and maintain programs and services that reflect its public's wishes. The intent of this MOA is to establish wages, working hours, and conditions of employment with the Association. ARTICLE VI – Compensation Section 1 – Job Families and Salary Schedule Effective the first full pay period following adoption of this Memorandum by Council, all salaries of covered classifications shall be as listed in Appendix A. Appendix A shall clearly outline benchmark classifications for future total compensation surveys and for the purposes of internal alignment of the Association job families and career paths. The parties agree to continue a jointly-staffed benchmark committee. All recommendations or research conducted by the committee will be included in the next bargaining process. Section 2 – Base Salary Increases a) General Salary Increase: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA, salary ranges and salaries of all represented classifications will be increased by three percent (3.0%). b) Market Adjustment: Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA, salary ranges and salaries of all classifications in the Manager, Utilities Strategic Business Services (Admin) job family will be increased by seven tenths of a percent (0.7%). Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA the following classifications will receive targeted market adjustments in the amount of six percent (6.0%): • Principal Electrical Engineer • Manager, Electrical Engineering Effective the first full pay period following the later of July 1, 2025 or the adoption of the MOA the following classifications will receive targeted market adjustments in the amount of four percent (4.0%): • Principal WGW Engineer • Manager, WGW Engineering c) General Salary Increase: Effective the first full pay period following July 1, 2026 salary ranges and salaries of all represented classifications will be increased by three percent (3.0%). Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 172  Packet Pg. 410 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 d) General Salary Increase: Effective the first full pay period following July 1, 2027 salary ranges and salaries of all represented classifications will be increased by three percent (3.0%). e) Effective July 2023, and in lieu of additional increases to the City’s medical premiums, hourly wages for all bargaining unit classifications will be increased by $100 per month ($1200 per year). Employees can utilize this cash payment for any purpose, including to cover health insurance premiums or contribute to flexible spending accounts/457 deferred compensation plans. f) Effective the first pay period of January 2024, all classifications will receive an additional one hundred dollars ($100) monthly flexible compensation payment built into base hourly rate of pay. Section 3 – Market Based Adjustments Within the Term of this Agreement, the City will conduct a total compensation study of UMPAPA Benchmarked positions based on the following agencies: Anaheim Burbank Mountain View Pacific Gas and Electric Sacramento MUD San Jose Sunnyvale The City’s total compensation study will include a geographic adjustment for agencies which are outside of the immediate region. Those agencies receiving a geographic adjustment are: Anaheim, Burbank, Long Beach, Sacramento MUD and Roseville. For the purposes of recruiting and retaining employees within the Utility market place, the parties will add to the survey universe data from Pacific Gas and Electric (PG&E) Bay Area region where data can be found. For the term of this agreement, where PG&E data cannot be verified or acquired the parties agree to include an above-median comparator for the purposes of calculating benchmarks. The City’s survey is intended to provide a single source of information regarding compensation paid to bargaining unit employees and its comparison to compensation paid by other entities. The survey data does not obligate the City or the Association to propose or agree to any market-based adjustments. The next total compensation study will be started 180 days prior to expiration of this agreement. Effective the first full pay period following the adoption of the MOA, salary ranges identified classifications will be increased in an amount sufficient to bring them to market as determined by the City’s market study. Section 4. Working Above Classification Where covered employees, on a temporary basis, are assigned to perform all significant duties of a higher classification for a period of one pay period or more, the City Manager or designee may authorize payment within the range of the higher classification for the specified time frame. Working above classification will not exceed six months, unless renewed at the discretion of the City Manager or designee. On expiration of that timeframe, working above classification pay will cease and the employee will return to their former Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 173  Packet Pg. 411 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 pay level. Working above classification pay is not to exceed 10% more than the employee’s current salary and shall be documented on a Personnel Action Form, with a description of the additional duties in the higher classification to be performed and an end date. Any disputes with the application of this provision shall be subject to Chapter 11 of the City’s Merit Rules. Section 5. Engineers in Responsible Charge Principal Engineers designated as engineers in responsible charge shall receive working above classification pay as defined in Section 4 above. Section 6. Standby Compensation Utility Operations Supervisors in WGW or Electric who are assigned to standby duty shall be compensated at the daily rate of two (2) hours at their base hourly salary on days the employee is assigned to be on standby duty. Section 7. Utility Cost Efficiency Incentive Pilot Program The parties agree to continue the pilot program and its incentive pays for the term of the agreement. ARTICLE VII – HEALTH BENEFITS Section 1 – Group Insurance Except as otherwise set forth herein, the City will maintain the present level of benefits on all City- sponsored medical programs. a) Effective Date of Coverage For newly-hired regular employees coverage begins on the first day of the month following submission of new hire forms for the health plan, dental plan, vision care plan, long term disability and life insurance plans if these benefits are elected. City health premium contributions (medical, dental and vision) are prorated for part-time employees based on the number of hours per week the part-time employee is assigned to work. b) Active Employee Health Coverage During the term of this MOA, the maximum City contribution towards medical premiums for eligible full time employees per employee category shall be the following for any plan: Category PEMHCA contribution*) Effective the later of July 1, 2025 or the adoption of the MOA. Effective January 1, 2027, the City will increase its maximum contribution to medical premiums by the Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 174  Packet Pg. 412 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 following percentages: • Employee only: 2% • Employee plus one: 3% • Employee family: 5% Category PEMHCA contribution*) Effective January 1, 2027 or the adoption of the MOA. Effective January 1, 2028, the City will increase its maximum contribution to medical premiums by four percent (4%). Category PEMHCA contribution*) Effective January 1, 2028 or the adoption of the MOA. *For the duration of this MOA if the PEHMCA Minimum charges increase they will be included in the City’s maximum contribution and will not result in an increase to the City’s maximum contribution rates. c) Coverage for Domestic Partners. 1. Domestic Partnership Registered with the California Secretary of State: Employees may add their domestic partner as a dependent to their elected health plan coverage if the domestic partnership is registered with the Secretary of State. 2. Domestic Partner Not Registered with the California Secretary of State: Domestic partners who meet the requirements of the City of Palo Alto Declaration of Domestic Partnership, and are registered with the Human Resources Department, will be eligible for a stipend of two hundred and eighty four dollars ($284) per month toward the cost of an individual health plan. Evidence of premium payment will be required with request for reimbursement. d) Alternative Medical Benefit Program If a regular employee and/or the employee’s dependent(s) are eligible for medical insurance through another employer-sponsored or association medical plan, the employee may opt for alternative medical insurance coverage through the other employer-sponsored or association plan and waives their right to the City of Palo Alto’s medical insurance coverage for same individuals. Employees waiving City coverage may receive a stipend of $284 per month Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 175  Packet Pg. 413 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 e) Retiree Health Plan a. Employees Hired Prior to January 1, 2004 Monthly City-paid premium contributions for a retiree-selected health plan through the CalPERS Health Benefits Program will be made as provided under the Public Employees' Medical and Hospital Care Act. The City's contribution for an employee hired before January 1, 2004 and whose retirement date is on or after May 1, 2011 shall be the same contribution amount it makes from time to time for active City employees. b. Post - 1/1/04 Hires Government Code section 22893 applies to those Unit members hired after January I, 2004, and provides that, upon retirement from the City an employee is eligible for 50% of the specified employer health premium contribution after ten (10) years of service credit, provided at least five of those years were performed at the City of Palo Alto. After ten years of service credit, each additional service credit year increases the employer contribution percentage by 5% until, at twenty (20) years' service credit; the employee will be eligible upon retirement for 100% of the specified employer contribution and 90% of the contribution for their dependent coverage. The City of Palo Alto's health premium contribution for eligible post - 1/1/04 hires shall be the minimum contribution set by PERS under section Government Code section 22893. For employees hired prior to January 1, 2004 who wish to opt in to Government code section 22893, the City provided a 90 calendar day period, in which employees hired prior to January 1, 2004 will have the opportunity to opt in to Government code section 22893. For a 90 day period following adoption of this agreement by Council, the City will offer a one-time opt in to Government code section 22893 for employees hired prior to 12/1/2013. f) Dental Plan 1. The City shall pay covered plan charges on behalf of all eligible employees and dependents. Dependents include eligible domestic partners as defined in Section 1 subsection c of this Article VII, Health Benefits. 2. The City provides a base dental plan for all eligible employees and dependents. Eligible employees may enroll in a dental buy-up plan. The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled for coverage under the base dental plan. g) Vision Care 1. Level of Benefits: The City provides a base vision plan for all eligible employees and dependents. Eligible employees may enroll in a vision buy-up plan. 2. Premiums: The City shall pay all premium payments on behalf of employees and dependents who are eligible and enrolled in coverage under the base vision plan. Employees are responsible for premium payments required to enroll in the buy-up vision plan. 2. Dependents include eligible domestic partners as defined in Section 1, Subsection c of this Article VII, Health Benefits. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 176  Packet Pg. 414 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 h) No dual coverage for dental and vision benefits. When a City employee is married to or has a registered domestic partner with the California Secretary of State with another City employee, each shall only be covered once. (as an individual or as a spouse of the other City employees, but not both) and dependent children, if any, shall be covered by only one spouse. i) Basic Life Insurance The City shall provide a basic group term life insurance with Accidental Death and Dismemberment (AD&D) coverage, in an amount equal to the employee's annual basic pay (rounded to the next highest $1,000) at no-cost to the employee. AD&D pays an additional amount equal to the employee’s annual basic pay (rounded to the next highest $1,000). j) Supplemental Life And AD&D Insurance An employee may, at their cost, purchase additional life insurance and additional AD&D coverage equal to one- or two-times his or her annual salary. The maximum amount of life insurance available to the employee is up to $325,000 and the maximum amount of AD&D coverage available is up to $325,000. k) Long Term Disability Insurance The City shall provide long term disability (LTD) insurance with a benefit of 2/3 monthly salary, up to a maximum benefit of ten thousand dollars ($10,000) per month. The LTD plan will have a waiting period of sixty days, as provided by the applicable carrier agreement. The City shall pay the premium for the first six thousand dollars ($6,000) of base monthly salary. For employees whose base monthly salary exceeds six thousand dollars ($6,000), the employee shall pay the cost of the required premium based upon their monthly salary between six thousand dollars ($6,000) and fifteen thousand dollars ($15,000). l) Employee Assistance Plan The Employee Assistance Plan (EAP) provides employees with confidential personal counseling, work and family related issues, eldercare, substance abuse, etc. In addition, EAP programs provide a valuable tool for supervisors to refer troubled employees to professional outside help. This service staffed by experienced clinicians is available to employees and their dependents by calling a toll-free phone line twenty-four (24) hours a day, seven days a week. Guidance is also available online. Article VIII – Deferred Compensation Match The City will match employee contributions into their City-approved 457 plans up to a maximum of $4000. No combination of Employee and Employer funds can exceed the IRS limits for City approved 457 plans. The table below is for illustrative purposes only: Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 177  Packet Pg. 415 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 $4,000 $4,000 $11,000 $4,000 ARTICLE IX – LEAVES Section 1 – Sick Leave a) Sick leave shall be accrued bi-weekly provided the employee has been in a pay status for 50 percent or more of a bi-weekly pay period. Sick leave shall be accrued at the rate of 3.7 hours per bi-weekly pay period for those employees working a forty-hour duty schedule. Those assigned work schedules, which are greater or lesser than forty hours will accrue sick leave at the ratio of their work schedule to forty hours. b) Employees may use up to thirty (30) hours of sick leave per calendar year for personal business. The scheduling of such leave is subject to the approval of the appropriate level of Management. c) Employees leaving the municipal service shall forfeit all accumulated sick leave, except as otherwise provided by law and by Section 609 of the Merit Rules and Regulations. In the event that notice of resignation is given, sick leave may be used only through the day which was designated as the final day of work by such notice. d) Employees that were hired before December 1, 1983 and who leave the municipal service in good standing, or who die while employed in good standing by the city, and who have fifteen or more years of continuous service shall receive compensation for unused sick leave hours in a sum equal to two and one-half percent of their unused sick leave hours multiplied by their years of continuous service and their basic hourly rate of pay at termination. Full sick leave accrual will be paid in the event of termination due to disability. See Merit System Rules and Regulations, Chapter 6, Section 609. e) Sick leave may be used for illness in the immediate family, including a registered domestic partner or other individuals required by law. f) Employees eligible, as specified above if hired before December 1, 1983, to be compensated for sick leave may annually convert sick leave hours in excess of 600 to cash or deferred compensation, according to the formula set forth above, up to a maximum of $2,000 per fiscal year. Section 2 – Management Annual Leave At the beginning of each calendar year designated exempt employees will be credited with 80 hours of management annual leave. This leave is granted in recognition of the extra hours exempt employees work over their regular schedule. This leave may be taken as paid time off, added to vacation accrual (subject to vacation accrual limitations), taken as cash or taken as deferred compensation. When time off is taken under this provision, 10-hour shift workers will receive one shift off for each 8 hours charged. Entitlement under this provision will be reduced on a prorated basis for part-time status, or according to the number of months in paid status during the fiscal year; employees who have used more than the pro-rated share at the time they leave City service shall be required to repay the balance or have it deducted from their final check. Unused balances as of the end of the calendar year will be paid in cash unless a different option as indicated above is elected by the employee. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 178  Packet Pg. 416 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Section 3 – Vacation Vacation is accrued when an employee is in pay status and is credited on a bi-weekly basis. Total vacation accrual at any one time may not exceed three times the annual rate of accrual. Each eligible employee shall accrue vacation at the following rate for continuous service performed in pay status: a) Less than nine years. For employees completing less than nine years continuous service: 120 hours vacation leave per year; provided that: The City manager is authorized to adjust the annual vacation accrual of employees hired on or after July 1, 2001, to provide up to 40 additional hours (i.e., to a maximum annual accrual of 160 hours) for service with a prior employer. b) Nine, but less than fourteen years. For employees completing nine, but not more than fourteen years continuous service; 160 hours vacation per year. c) Fourteen, but less than nineteen years. For employees completing fourteen, but not more than nineteen years continuous service; 180 hours vacation leave per year. d) Nineteen or more years. For employees completing nineteen or more years continuous service; 200 hours vacation leave per year. e) Employees are eligible to cash out vacation accrual balances in excess of 80 hours. An employee may cash out a minimum of eight (8) hours to a maximum of 120 hours of accrued vacation provided the employee has taken 80 vacation hours in the previous 12 months and has followed the election procedures set forth in this section. Employees must elect the number of vacation hours they will cash-out during the next calendar year, up to the maximum of 120 hours. The election will apply only to vacation hours that are accrued in the next calendar year and that are eligible for cash-out. The election to cash-out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash-out vacation hours must cash-out the number of accrued hours pre- designated on the election form. Employees who do not elect a cash-out amount by December 31 of the prior calendar year will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash-out vacation hours in the next tax year. Employees who elect cash-out amounts may request a cash-out at any time in the designated tax year by submitting a cash-out form to payroll. Payroll will complete the cash-out upon request, provided the requested cash-out amount has accrued and is consistent with the amount the employee pre-designated. If the full amount of hours designated for cash-out is not available at the time of cash-out request, the maximum available will be paid. For employees who have not requested cash-out of the elected amount by November 1 of each year, Payroll will automatically cash-out the elected amount, or the maximum available amount, in a paycheck issued on or after the payroll date including November 1. Section 4 – Bereavement Leave of absence with pay of three (3) days may be granted to an employee by the head of their department in the event of death in the employee’s family, which is defined for purposes of this section as: Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 179  Packet Pg. 417 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 wife husband son son-in-law daughter daughter-in-law father mother brother brother-in-law sister adopted child sister-in-law mother-in-law father-in-law step-father step-mother step-sister step-brother grandfather grandfather-in-law grandmother grandmother-in-law uncle aunt niece nephew registered domestic partner close relative residing in the household of the employee Such leave shall be at full pay and shall not be charged against the employee’s accrued vacation or sick leave. Employees may supplement paid bereavement leave with accrued leave (including vacation or sick leave) or unpaid leave to reach a total of five (5) workdays of time off per incident of bereavement. Requests for leave in excess of five (5) days shall be subject to the approval of the City Manager or their designee. Section 5 – All Other Leaves For all other leaves of absence refer to Chapters 5 and 8 of the City’s Merit Rules and Regulations. Section 6 – Vacation Benefits for Deceased Employees An employee who is eligible for vacation leave and who dies while in the municipal service shall have the amount of any accrued vacation paid to the employee's estate within thirty days. This proration will be computed at the last basic rate of pay. Section 7 – Voluntary Leave Program If permitted by agreement between the City and the Association, members of the Association may participate in the "Voluntary Leave Program" to assist in maintaining the pay of an employee who is eligible by virtue of a qualifying catastrophic medical condition. Such participation, when authorized by City- Association agreement, shall be allowed only as long as the donors remain anonymous (unless disclosure is required by law). Section 8 Floating Holiday – Days of Historical Significance Employees will be provided one floating holiday each calendar year in acknowledgement of days of historical significance. The employee with prior approval from their supervisor can use this floating holiday at any time during the year. This holiday has no cash value and will expire if unused. ARTICLE X – WORKERS’ COMPENSATION Section 1 – Employees unable to work due to occupational injury, illness or disease Employees unable to work due to occupational injury, illness or disease will be required to report to management to discuss their status and ability to return to work on restricted or unrestricted duty, subject to the limitations imposed by applicable law. This requirement is not meant to unreasonably restrict employee’s activities while off work due to such incapacity as long as such activities are cleared by the treating physician, treating program or alternative treatment program and the employee is available for restricted or unrestricted duty as soon as medical clearance can be received. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 180  Packet Pg. 418 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Section 2 – Temporary Disability While temporarily disabled, employees shall be entitled to use accrued sick leave for the first three (3) days following the date of injury and thereafter shall be paid full base salary for a period not to exceed fifty-seven (57) calendar days (including Saturdays, Sundays and Holidays), unless hospitalized, in which case employees shall be paid full base salary for a period not to exceed sixty (60) days from date of injury. For any temporary disability continuing beyond the time limits set forth above, employees shall be paid two-thirds (66.66%) of their full base salary at the time of injury for the duration of such temporary disability in conformance with State law. During the period of temporary disability, an employee’s eligibility for health, dental, life, LTD, or other insured program will continue with City contributions at the same rate as for active employees and vacation and sick leave benefits shall continue to accrue. In case of temporary disability beyond the time limits set forth above, sick leave and vacation benefits shall not be accrued. ARTICLE XI – RETIREMENT PENSION a) Employees hired before July 17, 2010 1. Retirement formula. Effective pay period inclusive of 1/6/07, the City’s Public Employees’ Retirement System (PERS) benefits changed to the 2.7%@ 55 formula for non-safety members (from 2% @55). 2. Employee contributions. Employees under the 2.7%@55 retirement formula will pay the full eight percent (8%) employee contribution. 3. Final compensation. Final compensation for purposes of retirement shall be as set forth in the City’s contract with CalPERS, including, when applicable, the Government Code Section 20692 Optional Benefit. b) Employees hired on or after July 17, 2010. 1. Retirement formula. For miscellaneous employees hired on or after July 17, 2010, or on or after January 1, 2013 who are not subject to the pension formula in the Public Employees’ Pension Reform Act (PEPRA), the City offers the CalPERS retirement formula two percent (2.0%) of final salary at age sixty (60). 2. Employee contributions. Employees under the 2%@60 retirement formula will pay the full seven percent (7%) employee contribution. 3. Final compensation. Final compensation for purposes of retirement shall be as set forth in the City’s contract with CalPERS, including, when applicable, the Government Code Section 20692 Optional Benefit or as required by law. c) New Employees hired on or after January 1, 2013 Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 181  Packet Pg. 419 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Employees hired on or after January 1, 2013 who are “new members” as defined by the California Public Employees’ Pension Reform Act (PEPRA), will be subject to the terms of that statute including but not limited to the following provisions: 1. Retirement formula. Effective for employees hired on or after January 1, 2013, the PEPRA requires the City to provide new employees, as defined in that law, the CalPERS retirement formula two percent of final salary at age 62 (2%@62). 2. Employee contributions. Employees under the 2%@62 formula shall pay at least 50 percent of the total normal cost or the same contribution rate as “similarly situated” employees, whichever is higher. 3. Final compensation. Final compensation for employees under the 2%@62 benefit shall be as set forth in PEPRA, including calculation based on the average of three highest consecutive years and a cap on pensionable compensation (currently $136,440) based on IRS limits for employers that do not participate in social security. d) Effective as soon as administratively feasible but no sooner than the first full pay period of March 2019, bargaining unit employees shall contribute 1% of their salary toward the employer cost of retirement. Pensions Group Pension Formula Employer Side Contribution from 2.7@ 55 8% 1% 9% 2@60 7% 1% 8% 2@62 50% of the normal Cost (Currently 6.25%) 1% Will fluctuate (Currently 7.25%) e) Employee CalPERS contributions tax deferred. Employee CalPERS contributions shall be made on a tax deferred basis, in accordance with Section 414(h)(2) of the Internal Revenue Code. All provisions of this subsection are subject to and conditioned upon compliance with IRS regulations. ARTICLE XII – MISCELLANEOUS Section 1 – Reimbursement for Relocation Expense The City of Palo Alto, in rare instances, may, provide a Basic Relocation Benefits Package for new employees, upon the approval of the City Manager or designated subordinate. In addition, the provision of “Optional Benefits”, or portions thereof, may be extended for exceptional circumstances and only by approval of the City Manager or designee. The details of the Relocation Expense program are specified in the City’s Relocation Expense policy. Section 2 – Meal allowance Employees assigned to attend night meetings or who travel for business purposes are eligible to receive reimbursement as described by City policy. This provision covers only receipted meals actually taken and submitted for reimbursement. Section 3 – Reduction in Workforce Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 182  Packet Pg. 420 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 The City will make every effort to provide written notice of its intent to lay off employees in this unit and will meet with Association upon request to discuss alternatives to layoff. Section 4 - Contracting Out a. As provided in subsection b, the City shall provide notice of any planned action(s) that would result in the layoff of one or more Association bargaining unit members and where either of the following apply: 1. The planned City action(s) is to contract out work historically and exclusively performed by Association bargaining unit members; 2. The planned City action is to substantially increase the scope or amount of work historically but not exclusively performed by Association bargaining unit members (e.g. work shared with other City employees outside the Association bargaining unit or contractors). b. The City shall deliver written notice to the Association at least thirty (30) days before it implements any action(s) described in subsection a. Within seven (7) days after it receives such notice, the Association may deliver to the City’s Chief People Officer a written request to meet and discuss the effects of the City action(s). After the City’s receipt of such request, the parties will promptly meet and undertake discussions. The discussions will conclude no later than the thirtieth (30th) day following the Association’s receipt of the City’s notice of the planned action(s), as described above. Thereafter, the City may implement the action(s) without further discussion as originally planned or as modified as a result of such discussions. If the Association does not deliver timely notice of its desire to meet and discuss the effects of the action(s) identified in the City’s notice, the City may proceed with the planned action(s). c. The City retains its right to determine the methods, means, and personnel by which services are carried out at its sole discretion in circumstances no covered by subsection a above. Section 5- Association Security a) When a person is hired in any of the covered job classifications, the City shall notify that person that the Association is the recognized bargaining representative for the employee in said Association and give the employee a current copy of the Memorandum of Agreement. b) Members of the Association Board may use a reasonable amount of on-duty time without loss of pay to meet with the City specifically related to representation of employees. For purposes of this section, representation shall include: (i) Meetings with represented employees or the City related to a grievance or disciplinary action, including investigation and preparation time. (ii) Any meeting with the City related to benefits, working conditions or other terms and conditions of employment. Section 6- Notification to the Association The Association shall be informed in advance in writing by the City before any proposed changes not covered by this Memorandum of Agreement are made in benefits, working conditions, or other terms and conditions of employment which require meet and confer or meet and consult process. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 183  Packet Pg. 421 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 Section 7- Association Representative Access to Work Locations Employee and nonemployee representatives of the Association will be granted access to City work locations to conduct business related to the administration or negotiation of the parties' Memorandum of Agreement, as long as advance arrangements for such visits have been made with the affected department manager and no disruption of work occurs. Section 8- Release Time The Association Chair, Vice-Chair or their designee in the representation unit may use a reasonable amount of time without loss of pay for matters related to the bargaining process, labor relations, and administration of the MOA, violations of the MOA, grievances, disciplinary Section 9- Personnel Files Records of all disciplinary actions shall be kept in the central personnel file. Employees shall be entitled to sign and date any action forms in their personnel files. Employees are entitled to review their personnel files upon written request or to authorize, in writing, review by their Association representatives. An employee shall be allowed, copies of materials in their personnel file. ARTICLE XIII – GRIEVANCE PROCEDURE Section 1 - General Provisions The City and the Association recognize that early settlement of grievances is essential to sound employee-employer relations. The parties seek to establish a mutually satisfactory method for the settlement of Association grievances as provided for below. In presenting a grievance the aggrieved and/or their representative is assured freedom from restraint, interference, coercion, discrimination or reprisal. Section 2 – Definitions Grievance means an unresolved complaint or dispute regarding the interpretation or application of this Memorandum of Agreement, excluding however those provisions of this MOA which specifically provide that the decision of any City official shall be final, the interpretation or application of those provisions not being subject to the grievance. Section 3 - Conduct of Grievance Procedure a) An aggrieved employee may be represented by the Association or may represent themselves in preparing and presenting a grievance at any level of review. No grievance settlement may be made in violation of an existing merit rule or memorandum of agreement. b) An employee and the representative steward, if any, may use a reasonable amount of work time so long as there is no disruption of work, in conferring about and presenting a grievance. Requests for release time to prepare grievances shall be made in advance and approved by the immediate supervisor. c) The time limits specified in this Article may be extended by mutual agreement in writing of the aggrieved employee or the Association and the reviewer concerned. d) Should a decision not be rendered within a stipulated time limit, the grievant may immediately appeal to the next step. Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 184  Packet Pg. 422 of 1138  Memorandum of Agreement Between Utilities Management and Professional Association of Palo Alto and the City of Palo Alto effective July 1, 2025 to June 30, 2028 e) The grievance shall be considered settled if the decision of any step is not appealed within the specified time limit. f) Grievances shall be made in writing and submitted on forms provided by the City. The written grievance shall contain clear, factual and concise language, including: (1) the name of the grievant; (2) a statement of the facts upon which the grievance is based, including relevant dates, times and places; (3) specific provisions of this Agreement the grievant alleges has been violated; (4) a summary of any steps taken toward resolution; and (5) the action the grievant believes will resolve the grievance. g) Any retroactivity on monetary grievances shall be limited to the date of occurrence, except in no case will retroactivity be granted prior to three months before the grievance was filed in writing. h) For purposes of time limits, “working days” are considered to be Monday through Friday, exclusive of City holidays. i) If a mutually agreed solution is reached during any step of this grievance procedure, the agreement shall be placed in writing and signed by the City and the grievant or Association. j) Upon request of either party, meetings to discuss the grievance shall be held at any step in the grievance procedure. Section 4 - Grievance and Appeal Procedure Step I. Informal Discussion Within fifteen (15) working days after the incident or discovery of the incident on which the grievance is based the aggrieved employee shall present the grievance action to their immediate supervisor and attempt to resolve the grievance through informal discussions. Every attempt will be made to settle the issue at this level. Step II. Formal Grievance If the grievance is not resolved through the informal discussion in Step 1 the employee will reduce the grievance to writing and submit copies to the Department head or their designee within fifteen (15) working days of the discussion with the immediate. The Department Head or designee shall have fifteen (15) working days from the receipt of a written grievance to review the matter and prepare a written statement. Step III. Human Resources Director If the grievance is not resolved and/or the aggrieved employee is not satisfied with the Step II decision, the grievant may appeal to the Human Resource Director or their designee in writing within fifteen (15) working days of the receipt of the Department Head's response. The written appeal to the Human Resources level shall include a copy of the original grievance, the Department Head’s decision at Step II, and a clear statement of the reasons for appeal. Within fifteen (15) working days, after receiving the written appeal, the Human Resource Director shall review the matter and prepare a written statement. If a mutually agreed solution is reached during this process the agreement shall be placed in writing and signed. Step IV. City Manager /Arbitration Item 8 Attachment C - MOA - UMPAPA        Item 8: Staff Report Pg. 185  Packet Pg. 423 of 1138